The division of a market into different homogeneous groups of consumers is known as market segmentation.
Rather than offer the same marketing mix to vastly different customers, market segmentation makes it possible for firms to tailor the marketing mix for specific target markets, thus better satisfying customer needs. Not all elements of the marketing mix are necessarily changed from one segment to the next. For example, in some cases only the promotional campaigns would differ.
A market segment should be:
* measurable
* accessible by communication and distribution channels
* different in its response to a marketing mix
* durable (not changing too quickly)
* substantial enough to be profitable
A market can be segmented by various bases, and industrial markets are segmented somewhat differently from consumer markets, as described below.
Consumer Market Segmentation:
A basis for segmentation is a factor that varies among groups within a market, but that is consistent within groups. One can identify four primary bases on which to segment a consumer market:
* Geographic segmentation is based on regional variables such as region,
climate, population density, and population growth rate.
* Demographic segmentation is based on variables such as age, gender,ethnicity,
education, occupation, income, and family status.
* Psychographic segmentation is based on variables such as values, attitudes,
and lifestyle.
* Behavioral segmentation is based on variables such as usage rate and
patterns, price sensitivity, brand loyalty, and benefits sought.
The optimal bases on which to segment the market depend on the particular situation and are determined by marketing research, market trends, and managerial judgment.
Business Market Segmentation :
While many of the consumer market segmentation bases can be applied to businesses and organizations, the different nature of business markets often leads to segmentation on the following bases:
* Geographic segmentation - based on regional variables such as customer
concentration, regional industrial growth rate, and international
macroeconomic factors.
* Customer type - based on factors such as the size of the organization, its
industry, position in the value chain, etc.
* Buyer behavior - based on factors such as loyalty to suppliers, usage
patterns, and order size.
Profiling the Segments :
The identified market segments are summarized by profiles, often given a descriptive name. From these profiles, the attractiveness of each segment can be evaluated and a target market segment selected.
Custom Search
Monday, September 20, 2010
Saturday, September 18, 2010
Marketing Research
Managers need information in order to introduce products and services that create value in the mind of the customer. But the perception of value is a subjective one, and what customers value this year may be quite different from what they value next year. As such, the attributes that create value cannot simply be deduced from common knowledge. Rather, data must be collected and analyzed. The goal of marketing research is to provide the facts and direction that managers need to make their more important marketing decisions.
To maximize the benefit of marketing research, those who use it need to understand the research process and its limitations.
Marketing Research vs Market Research
These terms often are used interchangeably, but technically there is a difference.
Market research deals specifically with the gathering of information about a market's size and trends. Marketing research covers a wider range of activities. While it may involve market research, marketing research is a more general systematic process that can be applied to a variety of marketing problems.
The Value of Information
Information can be useful, but what determines its real value to the organization? In general, the value of information is determined by:
* The ability and willingness to act on the information.
* The accuracy of the information.
* The level of indecisiveness that would exist without the information.
* The amount of variation in the possible results.
* The level of risk aversion.
* The reaction of competitors to any decision improved by the information.
* The cost of the information in terms of time and money.
The Marketing Research Process
Once the need for marketing research has been established, most marketing research projects involve these steps:
1. Define the problem
2. Determine research design
3. Identify data types and sources
4. Design data collection forms and questionnaires
5. Determine sample plan and size
Problem Definition
The decision problem faced by management must be translated into a market research problem in the form of questions that define the information that is required to make the decision and how this information can be obtained. Thus, the decision problem is translated into a research problem. For example, a decision problem may be whether to launch a new product. The corresponding research problem might be to assess whether the market would accept the new product.
The objective of the research should be defined clearly. To ensure that the true decision problem is addressed, it is useful for the researcher to outline possible scenarios of the research results and then for the decision maker to formulate plans of action under each scenario. The use of such scenarios can ensure that the purpose of the research is agreed upon before it commences.
Research Design
Marketing research can classified in one of three categories:
* Exploratory research
* Descriptive research
* Causal research
These classifications are made according to the objective of the research. In some cases the research will fall into one of these categories, but in other cases different phases of the same research project will fall into different categories.
Exploratory research has the goal of formulating problems more precisely, clarifying concepts, gathering explanations, gaining insight, eliminating impractical ideas, and forming hypotheses. Exploratory research can be performed using a literature search, surveying certain people about their experiences, focus groups, and case studies. When surveying people, exploratory research studies would not try to acquire a representative sample, but rather, seek to interview those who are knowledgeable and who might be able to provide insight concerning the relationship among variables. Case studies can include contrasting situations or benchmarking against an organization known for its excellence. Exploratory research may develop hypotheses, but it does not seek to test them. Exploratory research is characterized by its flexibility.
Descriptive research is more rigid than exploratory research and seeks to describe users of a product, determine the proportion of the population that uses a product, or predict future demand for a product. As opposed to exploratory research, descriptive research should define questions, people surveyed, and the method of analysis prior to beginning data collection. In other words, the who, what, where, when, why, and how aspects of the research should be defined. Such preparation allows one the opportunity to make any required changes before the costly process of data collection has begun.
To maximize the benefit of marketing research, those who use it need to understand the research process and its limitations.
Marketing Research vs Market Research
These terms often are used interchangeably, but technically there is a difference.
Market research deals specifically with the gathering of information about a market's size and trends. Marketing research covers a wider range of activities. While it may involve market research, marketing research is a more general systematic process that can be applied to a variety of marketing problems.
The Value of Information
Information can be useful, but what determines its real value to the organization? In general, the value of information is determined by:
* The ability and willingness to act on the information.
* The accuracy of the information.
* The level of indecisiveness that would exist without the information.
* The amount of variation in the possible results.
* The level of risk aversion.
* The reaction of competitors to any decision improved by the information.
* The cost of the information in terms of time and money.
The Marketing Research Process
Once the need for marketing research has been established, most marketing research projects involve these steps:
1. Define the problem
2. Determine research design
3. Identify data types and sources
4. Design data collection forms and questionnaires
5. Determine sample plan and size
Problem Definition
The decision problem faced by management must be translated into a market research problem in the form of questions that define the information that is required to make the decision and how this information can be obtained. Thus, the decision problem is translated into a research problem. For example, a decision problem may be whether to launch a new product. The corresponding research problem might be to assess whether the market would accept the new product.
The objective of the research should be defined clearly. To ensure that the true decision problem is addressed, it is useful for the researcher to outline possible scenarios of the research results and then for the decision maker to formulate plans of action under each scenario. The use of such scenarios can ensure that the purpose of the research is agreed upon before it commences.
Research Design
Marketing research can classified in one of three categories:
* Exploratory research
* Descriptive research
* Causal research
These classifications are made according to the objective of the research. In some cases the research will fall into one of these categories, but in other cases different phases of the same research project will fall into different categories.
Exploratory research has the goal of formulating problems more precisely, clarifying concepts, gathering explanations, gaining insight, eliminating impractical ideas, and forming hypotheses. Exploratory research can be performed using a literature search, surveying certain people about their experiences, focus groups, and case studies. When surveying people, exploratory research studies would not try to acquire a representative sample, but rather, seek to interview those who are knowledgeable and who might be able to provide insight concerning the relationship among variables. Case studies can include contrasting situations or benchmarking against an organization known for its excellence. Exploratory research may develop hypotheses, but it does not seek to test them. Exploratory research is characterized by its flexibility.
Descriptive research is more rigid than exploratory research and seeks to describe users of a product, determine the proportion of the population that uses a product, or predict future demand for a product. As opposed to exploratory research, descriptive research should define questions, people surveyed, and the method of analysis prior to beginning data collection. In other words, the who, what, where, when, why, and how aspects of the research should be defined. Such preparation allows one the opportunity to make any required changes before the costly process of data collection has begun.
Tuesday, September 14, 2010
Successful Marketing With Promotional Products
Successful marketing with promotional products is fairly simple to do. It takes a little forethought and planning, and some advertising, to make promotions sparkle, but the results are well worth the extra effort and expense.
Most companies plan out their marketing budget in advance, and that is a wonderful strategy. It allows the company to plan events over the yearly calendar, and allocate enough of the budget per event. Planning ahead also prevents problems like having too many events and not enough advertising budget to properly work all the events. Once the plan for events is on paper, the marketing department can begin to work on themes and details of the event planning. Thinking ahead lets the planner strategize creatively. Events can be related to each other for maximum impact, and promotional products to be used at each event can also be planned out, and tied in with each other, to increase impact. By using a theme for events, and sequential promotional product give aways, the target audience can be increased. The accompanying advertising must feature the promotional product items, and using photos in addition to text is helpful.
All this work and pre-planning should result in increased traffic, which is the goal of any event. You want the most people to attend, and also to remember your company and the event you sponsored or supported. The imprinted promotional products will do this job for you. Imprinting is one of the greatest benefits found in promotional items. There are hundreds of thousands of products to choose from, and it is easy to select those that go together if you want to do sequential promotions.
Your product supplier is well able to advise you with product selection and imprint designs. Use company or product logos, text messages, images, or event information on the products. Use color, readable text fonts, and size to best advantage, without looking tacky. There is a complete range of prices, and with larger quantities, there are discounts. It never hurts to order some extras for around the office, for employees, suppliers, or to give to new clients. For special corporate gifts, consider some of the better gifts such as luggage, glassware, golf umbrellas, or laptop bags.
When selecting promotional items for use at large events, conventions, or meetings, look for usefulness and durability. Find items that are affordable, but popular, for best advertising reach and message longevity.
Most companies plan out their marketing budget in advance, and that is a wonderful strategy. It allows the company to plan events over the yearly calendar, and allocate enough of the budget per event. Planning ahead also prevents problems like having too many events and not enough advertising budget to properly work all the events. Once the plan for events is on paper, the marketing department can begin to work on themes and details of the event planning. Thinking ahead lets the planner strategize creatively. Events can be related to each other for maximum impact, and promotional products to be used at each event can also be planned out, and tied in with each other, to increase impact. By using a theme for events, and sequential promotional product give aways, the target audience can be increased. The accompanying advertising must feature the promotional product items, and using photos in addition to text is helpful.
All this work and pre-planning should result in increased traffic, which is the goal of any event. You want the most people to attend, and also to remember your company and the event you sponsored or supported. The imprinted promotional products will do this job for you. Imprinting is one of the greatest benefits found in promotional items. There are hundreds of thousands of products to choose from, and it is easy to select those that go together if you want to do sequential promotions.
Your product supplier is well able to advise you with product selection and imprint designs. Use company or product logos, text messages, images, or event information on the products. Use color, readable text fonts, and size to best advantage, without looking tacky. There is a complete range of prices, and with larger quantities, there are discounts. It never hurts to order some extras for around the office, for employees, suppliers, or to give to new clients. For special corporate gifts, consider some of the better gifts such as luggage, glassware, golf umbrellas, or laptop bags.
When selecting promotional items for use at large events, conventions, or meetings, look for usefulness and durability. Find items that are affordable, but popular, for best advertising reach and message longevity.
Monday, August 23, 2010
Marketing Environment
Introduction:
An organisation’s success is influenced by factors operating in it’s internal and external environment; an organisation can increase it’s success by adopting strategies which manipulate these factors to it’s advantage. A successful organisation will not only understand existing factors but also forecast change, so that it can take advantage of change within the environments in which it operates.
PEST & Micro environmental Factors:
The following type of forces influence an organisation’s operating environment:
• Pest Factors – These are external forces which the organisation does not have
direct control over these factors. PEST is an acronym and each letter represents a
type of factor (Political, Economical Social and Technological).
• Micro environmental factors – These are internal factors, which the organisation
can control.
PEST & PESTLE analysis:
A PEST analysis is used to identify the external forces affecting an organisation.This is a simple analysis of an organisation’s Political, Economical, Social and Technological environment. A PEST analysis incorporating legal and environmental factors is called a PESTLE analysis.
Political:
The first element of a PEST analysis is a study of political factors. Political factors influence organisations in many ways. Political factors can create advantages and opportunities for organisations. Conversely they can place obligations and duties on organisations. Political factors include the following types of instrument:
- Legislation such as the minimum wage or anti discrimination laws.
- Voluntary codes and practices
- Market regulations
- Trade agreements, tariffs or restrictions
- Tax levies and tax breaks
- Type of government regime eg communist, democratic, dictatorship
Non conformance with legislative obligations can lead to sanctions such as fines, adverse publicity and imprisonment. Ineffective voluntary codes and practices will often lead to governments introducing legislation to regulate the activities covered by the codes and practices.
Economical:
The second element of a PEST analysis involves a study of economic factors.
All businesses are affected by national and global economic factors. National and global interest rate and fiscal policy will be set around economic conditions. The climate of the economy dictates how consumers, suppliers and other organisational stakeholders such as suppliers and creditors behave within society.
An economy undergoing recession will have high unemployment, low spending power and low stakeholder confidence. Conversely a booming or growing economy will have low unemployment, high spending power and high stakeholder confidence.
A successful organisation will respond to economic conditions and stakeholder behaviour. Furthermore organisations will need to review the impact economic conditions are having on their competitors and respond accordingly.
In this global business world organisations are affected by economies throughout the world and not just the countries in which they are based or operate from. For example: a global credit crunch originating in the USA contributed towards the credit crunch in the UK in 2007/08.
Cheaper labour in developing countries affects the competitiveness of products from developed countries. An increase in interest rates in the USA will affect the share price of UK stocks or adverse weather conditions in India may affect the price of tea bought in an English café.
A truly global player has to be aware of economic conditions across all borders and needs to ensure that it employs strategies that protect and promote its business through economic conditions throughout the world.
Social:
The third aspect of PEST focuses its attention on forces within society such as family, friends, colleagues, neighbours and the media. Social forces affect our attitudes, interest s and opinions. These forces shape who we are as people, the way we behave and ultimately what we purchase. For example within the UK peoples attitudes are changing towards their diet and health. As a result the UK is seeing an increase in the number of people joining fitness clubs and a massive growth for the demand of organic food. Products such as Wii Fit attempt to deal with society’s concern, about children’s lack of exercise.
Population changes also have a direct impact on organisations. Changes in the structure of a population will affect the supply and demand of goods and services within an economy. Falling birth rates will result in decreased demand and greater competition as the number of consumers fall. Conversely an increase in the global population and world food shortage predictions are currently leading to calls for greater investment in food production. Due to food shortages African countries such as Uganda are now reconsidering their rejection of genetically modified foods.
In summary organisations must be able to offer products and services that aim to complement and benefit people’s lifestyle and behaviour. If organisations do not respond to changes in society they will lose market share and demand for their product or service.
Technological:
Unsurprisingly the fourth element of PEST is technology, as you are probably aware technological advances have greatly changed the manner in which businesses operate.
Organisations use technology in many ways, they have
1. Technology infrastructure such as the internet and other information exchange
systems including telephone
2. Technology systems incorporating a multitude of software which help them manage
their business.
3. Technology hardware such as mobile phones, Blackberrys, laptops, desktops,
Bluetooth devices, photocopiers and fax machines which transmit and record
information.
Technology has created a society which expects instant results. This technological revolution has increased the rate at which information is exchanged between stakeholders. A faster exchange of information can benefit businesses as they are able to react quickly to changes within their operating environment.
However an ability to react quickly also creates extra pressure as businesses are expected to deliver on their promises within ever decreasing timescales..
For example the Internet is having a profound impact on the marketing mix strategy of organisations. Consumers can now shop 24 hours a day from their homes, work, Internet café’s and via 3G phones and 3G cards. Some employees have instant access to e-mails through Blackberrys but this can be a double edged sword, as studies have shown that this access can cause work to encroach on their personal time outside work.
The pace of technological change is so fast that the average life of a computer chip is approximately 6 months. Technology is utilised by all age groups, children are exposed to technology from birth and a new generation of technology savvy pensioners known as “silver surfers” have emerged. Technology will continue to evolve and impact on consumer habits and expectations, organisations that ignore this fact face extinction.
PESTLE:
A PEST analysis is sometimes expanded to incorporate legal and environmental factors; this is known as a pestle analysis. There are many statutes books containing company law as almost every aspect of an organisation’s operation is controlled through legislation from treatment of employees through to health and safety. Legal factors are important as organisations have to work within legislative frameworks. Legislation can hinder business by placing onerous obligations on organisations. On the other hand legislation can create market conditions that benefit business.
An organisation’s success is influenced by factors operating in it’s internal and external environment; an organisation can increase it’s success by adopting strategies which manipulate these factors to it’s advantage. A successful organisation will not only understand existing factors but also forecast change, so that it can take advantage of change within the environments in which it operates.
PEST & Micro environmental Factors:
The following type of forces influence an organisation’s operating environment:
• Pest Factors – These are external forces which the organisation does not have
direct control over these factors. PEST is an acronym and each letter represents a
type of factor (Political, Economical Social and Technological).
• Micro environmental factors – These are internal factors, which the organisation
can control.
PEST & PESTLE analysis:
A PEST analysis is used to identify the external forces affecting an organisation.This is a simple analysis of an organisation’s Political, Economical, Social and Technological environment. A PEST analysis incorporating legal and environmental factors is called a PESTLE analysis.
Political:
The first element of a PEST analysis is a study of political factors. Political factors influence organisations in many ways. Political factors can create advantages and opportunities for organisations. Conversely they can place obligations and duties on organisations. Political factors include the following types of instrument:
- Legislation such as the minimum wage or anti discrimination laws.
- Voluntary codes and practices
- Market regulations
- Trade agreements, tariffs or restrictions
- Tax levies and tax breaks
- Type of government regime eg communist, democratic, dictatorship
Non conformance with legislative obligations can lead to sanctions such as fines, adverse publicity and imprisonment. Ineffective voluntary codes and practices will often lead to governments introducing legislation to regulate the activities covered by the codes and practices.
Economical:
The second element of a PEST analysis involves a study of economic factors.
All businesses are affected by national and global economic factors. National and global interest rate and fiscal policy will be set around economic conditions. The climate of the economy dictates how consumers, suppliers and other organisational stakeholders such as suppliers and creditors behave within society.
An economy undergoing recession will have high unemployment, low spending power and low stakeholder confidence. Conversely a booming or growing economy will have low unemployment, high spending power and high stakeholder confidence.
A successful organisation will respond to economic conditions and stakeholder behaviour. Furthermore organisations will need to review the impact economic conditions are having on their competitors and respond accordingly.
In this global business world organisations are affected by economies throughout the world and not just the countries in which they are based or operate from. For example: a global credit crunch originating in the USA contributed towards the credit crunch in the UK in 2007/08.
Cheaper labour in developing countries affects the competitiveness of products from developed countries. An increase in interest rates in the USA will affect the share price of UK stocks or adverse weather conditions in India may affect the price of tea bought in an English café.
A truly global player has to be aware of economic conditions across all borders and needs to ensure that it employs strategies that protect and promote its business through economic conditions throughout the world.
Social:
The third aspect of PEST focuses its attention on forces within society such as family, friends, colleagues, neighbours and the media. Social forces affect our attitudes, interest s and opinions. These forces shape who we are as people, the way we behave and ultimately what we purchase. For example within the UK peoples attitudes are changing towards their diet and health. As a result the UK is seeing an increase in the number of people joining fitness clubs and a massive growth for the demand of organic food. Products such as Wii Fit attempt to deal with society’s concern, about children’s lack of exercise.
Population changes also have a direct impact on organisations. Changes in the structure of a population will affect the supply and demand of goods and services within an economy. Falling birth rates will result in decreased demand and greater competition as the number of consumers fall. Conversely an increase in the global population and world food shortage predictions are currently leading to calls for greater investment in food production. Due to food shortages African countries such as Uganda are now reconsidering their rejection of genetically modified foods.
In summary organisations must be able to offer products and services that aim to complement and benefit people’s lifestyle and behaviour. If organisations do not respond to changes in society they will lose market share and demand for their product or service.
Technological:
Unsurprisingly the fourth element of PEST is technology, as you are probably aware technological advances have greatly changed the manner in which businesses operate.
Organisations use technology in many ways, they have
1. Technology infrastructure such as the internet and other information exchange
systems including telephone
2. Technology systems incorporating a multitude of software which help them manage
their business.
3. Technology hardware such as mobile phones, Blackberrys, laptops, desktops,
Bluetooth devices, photocopiers and fax machines which transmit and record
information.
Technology has created a society which expects instant results. This technological revolution has increased the rate at which information is exchanged between stakeholders. A faster exchange of information can benefit businesses as they are able to react quickly to changes within their operating environment.
However an ability to react quickly also creates extra pressure as businesses are expected to deliver on their promises within ever decreasing timescales..
For example the Internet is having a profound impact on the marketing mix strategy of organisations. Consumers can now shop 24 hours a day from their homes, work, Internet café’s and via 3G phones and 3G cards. Some employees have instant access to e-mails through Blackberrys but this can be a double edged sword, as studies have shown that this access can cause work to encroach on their personal time outside work.
The pace of technological change is so fast that the average life of a computer chip is approximately 6 months. Technology is utilised by all age groups, children are exposed to technology from birth and a new generation of technology savvy pensioners known as “silver surfers” have emerged. Technology will continue to evolve and impact on consumer habits and expectations, organisations that ignore this fact face extinction.
PESTLE:
A PEST analysis is sometimes expanded to incorporate legal and environmental factors; this is known as a pestle analysis. There are many statutes books containing company law as almost every aspect of an organisation’s operation is controlled through legislation from treatment of employees through to health and safety. Legal factors are important as organisations have to work within legislative frameworks. Legislation can hinder business by placing onerous obligations on organisations. On the other hand legislation can create market conditions that benefit business.
What is Marketing
The term marketing has changed and evolved over a period of time, today marketing is based around providing continual benefits to the customer, these benefits will be provided and a transactional exchange will take place.
The Chartered Institute of Marketing define marketing as 'The management process responsible for identifying , anticipating and satisfying customer requirements profitably'
If we look at this definition in more detail Marketing is a management responsibility and should not be solely left to junior members of staff. Marketing requires co-ordination, planning, implementation of campaigns and a competent manager with the appropriate skills to ensure success.
Marketing objectives, goals and targets have to be monitored and met, competitor strategies analysed, anticipated and exceeded. Through effective use of market and marketing research an organisation should be able to identify the needs and wants of the customer and try to delivers benefits that will enhance or add to the customers lifestyle, while at the same time ensuring that the satisfaction of these needs results in a healthy turnover for the organisation.
Philip Kotler defines marketing as 'satisfying needs and wants through an exchange process'
Within this exchange transaction customers will only exchange what they value (money) if they feel that their needs are being fully satisfied, clearly the greater the benefit provided the higher transactional value an organisation can charge.
The Chartered Institute of Marketing define marketing as 'The management process responsible for identifying , anticipating and satisfying customer requirements profitably'
If we look at this definition in more detail Marketing is a management responsibility and should not be solely left to junior members of staff. Marketing requires co-ordination, planning, implementation of campaigns and a competent manager with the appropriate skills to ensure success.
Marketing objectives, goals and targets have to be monitored and met, competitor strategies analysed, anticipated and exceeded. Through effective use of market and marketing research an organisation should be able to identify the needs and wants of the customer and try to delivers benefits that will enhance or add to the customers lifestyle, while at the same time ensuring that the satisfaction of these needs results in a healthy turnover for the organisation.
Philip Kotler defines marketing as 'satisfying needs and wants through an exchange process'
Within this exchange transaction customers will only exchange what they value (money) if they feel that their needs are being fully satisfied, clearly the greater the benefit provided the higher transactional value an organisation can charge.
Tuesday, August 17, 2010
Real-life marketing
Real-life marketing primarily revolves around the application of a great deal of common-sense; dealing with a limited number of factors, in an environment of imperfect information and limited resources complicated by uncertainty and tight timescales. Use of classical marketing techniques, in these circumstances, is inevitably partial and uneven.
Thus, for example, many new products will emerge from irrational processes and the rational development process may be used (if at all) to screen out the worst non-runners. The design of the advertising, and the packaging, will be the output of the creative minds employed; which management will then screen, often by 'gut-reaction', to ensure that it is reasonable.
For most of their time, marketing managers use intuition and experience to analyze and handle the complex, and unique, situations being faced; without easy reference to theory. This will often be 'flying by the seat of the pants', or 'gut-reaction' where the overall strategy, coupled with the knowledge of the customer which has been absorbed almost by a process of osmosis, will determine the quality of the marketing employed. This, almost instinctive management, is what is sometimes called 'coarse marketing' to distinguish it from the refined, aesthetically pleasing, form favored by the theorists.
Thus, for example, many new products will emerge from irrational processes and the rational development process may be used (if at all) to screen out the worst non-runners. The design of the advertising, and the packaging, will be the output of the creative minds employed; which management will then screen, often by 'gut-reaction', to ensure that it is reasonable.
For most of their time, marketing managers use intuition and experience to analyze and handle the complex, and unique, situations being faced; without easy reference to theory. This will often be 'flying by the seat of the pants', or 'gut-reaction' where the overall strategy, coupled with the knowledge of the customer which has been absorbed almost by a process of osmosis, will determine the quality of the marketing employed. This, almost instinctive management, is what is sometimes called 'coarse marketing' to distinguish it from the refined, aesthetically pleasing, form favored by the theorists.
Types of strategies
Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below:
* Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies:
* Leader
* Challenger
* Follower
* Nicher
* Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firm’s sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow.
* Product differentiation (broad)
* Cost leadership (broad)
* Market segmentation (narrow)
* Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:
* Pioneers
* Close followers
* Late followers
* Growth strategies - In this scheme we ask the question, “How should the firm grow?”. There are a number of different ways of answering that question, but the most common gives four answers:
* Horizontal integration
* Vertical integration
* Diversification
* Intensification
A more detailed scheme uses the categories:
* Prospector
* Analyzer
* Defender
* Reactor
* Marketing warfare strategies - This scheme draws parallels between marketing strategies and military strategies.
* Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies:
* Leader
* Challenger
* Follower
* Nicher
* Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firm’s sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow.
* Product differentiation (broad)
* Cost leadership (broad)
* Market segmentation (narrow)
* Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:
* Pioneers
* Close followers
* Late followers
* Growth strategies - In this scheme we ask the question, “How should the firm grow?”. There are a number of different ways of answering that question, but the most common gives four answers:
* Horizontal integration
* Vertical integration
* Diversification
* Intensification
A more detailed scheme uses the categories:
* Prospector
* Analyzer
* Defender
* Reactor
* Marketing warfare strategies - This scheme draws parallels between marketing strategies and military strategies.
Tactics and actions
A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: "Use a low cost product to attract consumers. Once our organization, via our low cost product, has established a relationship with consumers, our organization will sell additional, higher-margin products and services that enhance the consumer's interaction with the low-cost product or service.
A strategy consists of a well thought out series of tactics to make a marketing plan more effective. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. Plans and objectives are generally tested for measurable results.
A marketing strategy often integrates an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole. Similarly, the various strands of the strategy , which might include advertising, channel marketing, internet marketing, promotion and public relations can be orchestrated. Many companies cascade a strategy throughout an organization, by creating strategy tactics that then become strategy goals for the next level or group. Each one group is expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is important to make each strategy goal measurable.
Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics.
A strategy consists of a well thought out series of tactics to make a marketing plan more effective. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. Plans and objectives are generally tested for measurable results.
A marketing strategy often integrates an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole. Similarly, the various strands of the strategy , which might include advertising, channel marketing, internet marketing, promotion and public relations can be orchestrated. Many companies cascade a strategy throughout an organization, by creating strategy tactics that then become strategy goals for the next level or group. Each one group is expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is important to make each strategy goal measurable.
Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics.
Marketing strategy
Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal.Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. Corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement
Tuesday, August 10, 2010
Marketing planning aims and objectives
Behind the corporate objectives, which in themselves offer the main context for the marketing plan, will lie the "corporate mission," which in turn provides the context for these corporate objectives. In a sales-oriented organization, the marketing planning function designs incentive pay plans to not only motivate and reward front line staff fairly but also to align marketing activities with corporate mission.
This "corporate mission" can be thought of as a definition of what the organization is, of what it does: "Our business is This definition should not be too narrow, or it will constrict the development of the organization; a too rigorous concentration on the view that "We are in the business of making meat-scales," as IBM was during the early 1900s, might have limited its subsequent development into other areas. On the other hand, it should not be too wide or it will become meaningless; "We want to make a profit" is not too helpful in developing specific plans.
A bell suggested that the definition should cover three dimensions: "customer groups" to be served, "customer needs" to be served, and "technologies" to be utilized . Thus, the definition of IBM's "corporate mission" in the 1940s might well have been: "We are in the business of handling accounting information [customer need] for the larger US organizations [customer group] by means of punched cards [technology].
Perhaps the most important factor in successful marketing is the "corporate vision." Surprisingly, it is largely neglected by marketing textbooks, although not by the popular exponents of corporate strategy indeed, it was perhaps the main theme of the book by Peters and Waterman, in the form of their "Superordinate Goals." "In Search of Excellence" said: "Nothing drives progress like the imagination. The idea precedes the deed." If the organization in general, and its chief executive in particular, has a strong vision of where its future lies, then there is a good chance that the organization will achieve a strong position in its markets (and attain that future). This will be not least because its strategies will be consistent and will be supported by its staff at all levels. In this context, all of IBM's marketing activities were underpinned by its philosophy of "customer service," a vision originally promoted by the charismatic Watson dynasty. The emphasis at this stage is on obtaining a complete and accurate picture.
This "corporate mission" can be thought of as a definition of what the organization is, of what it does: "Our business is This definition should not be too narrow, or it will constrict the development of the organization; a too rigorous concentration on the view that "We are in the business of making meat-scales," as IBM was during the early 1900s, might have limited its subsequent development into other areas. On the other hand, it should not be too wide or it will become meaningless; "We want to make a profit" is not too helpful in developing specific plans.
A bell suggested that the definition should cover three dimensions: "customer groups" to be served, "customer needs" to be served, and "technologies" to be utilized . Thus, the definition of IBM's "corporate mission" in the 1940s might well have been: "We are in the business of handling accounting information [customer need] for the larger US organizations [customer group] by means of punched cards [technology].
Perhaps the most important factor in successful marketing is the "corporate vision." Surprisingly, it is largely neglected by marketing textbooks, although not by the popular exponents of corporate strategy indeed, it was perhaps the main theme of the book by Peters and Waterman, in the form of their "Superordinate Goals." "In Search of Excellence" said: "Nothing drives progress like the imagination. The idea precedes the deed." If the organization in general, and its chief executive in particular, has a strong vision of where its future lies, then there is a good chance that the organization will achieve a strong position in its markets (and attain that future). This will be not least because its strategies will be consistent and will be supported by its staff at all levels. In this context, all of IBM's marketing activities were underpinned by its philosophy of "customer service," a vision originally promoted by the charismatic Watson dynasty. The emphasis at this stage is on obtaining a complete and accurate picture.
The marketing planning process
Marketing process can be realized by the marketing mix . The last step in the process is the marketing controlling. In most organizations, "strategic planning" is an annual process, typically covering just the year ahead. Occasionally, a few organizations may look at a practical plan which stretches three or more years ahead.
To be most effective, the plan has to be formalized, usually in written form, as a formal "marketing plan." The essence of the process is that it moves from the general to the specific, from the overall objectives of the organization down to the individual action plan for a part of one marketing program. It is also an interactive process, so that the draft output of each stage is checked to see what impact it has on the earlier stages, and is amended.
To be most effective, the plan has to be formalized, usually in written form, as a formal "marketing plan." The essence of the process is that it moves from the general to the specific, from the overall objectives of the organization down to the individual action plan for a part of one marketing program. It is also an interactive process, so that the draft output of each stage is checked to see what impact it has on the earlier stages, and is amended.
"Marketing" -- A Commonly Misunderstood Term
Before you learn more about marketing, you should get a basic impression of what marketing is. See What's "Advertising, Marketing, Promotion, Public Relations and Publicity, and Sales?". Basically, you might look at marketing as the wide range of activities involved in making sure that you're continuing to meet the needs of your customers and are getting appropriate value in return. Think about marketing as "inbound" and "outbound" marketing. (In the following, consider "product" to be either a tangible product or a service -- nonprofits often refer to these as "programs".)
Inbound Marketing Includes Market Research to Find Out:
1. What specific groups of potential customers/clients (markets) might have which
specific needs (nonprofits often already have a very clear community need in
mind when starting out with a new program -- however, the emerging practice of
nonprofit business development, or earned income development, often starts by
researching a broad group of clients to identify new opportunities for
programs)
2. How those needs might be met for each group (or target market), which suggests
how a product might be designed tomeet the need (nonprofits might think in
terms of outcomes, or changes, to accomplish among the groups of clients in
order to meet the needs)
3. How each of the target markets might choose to access the product, etc. (its
"packaging")
4. How much the customers/clients might be willing pay and how (pricing analysis)
5. Who the competitors are (competitor analysis)
6. How to design and describe the product such that customers/clients will buy
from the organization, rather than from its competitors (its unique value
proposition)
7. How the product should be identified -- its personality -- to be most
identifiable (its naming and branding)
Outbound Marketing Includes:
1. Advertising and promotions (focused on the product)
2. Sales
3. Public and media relations (focused on the entire organization)
4. Customer service
5. Customer satisfaction
Too often, people jump right to the outbound marketing. As a result, they often end up trying to push products onto people who really don't want the products at all. Effective inbound marketing often results in much more effective -- and less difficult -- outbound marketing and sales.
Inbound Marketing Includes Market Research to Find Out:
1. What specific groups of potential customers/clients (markets) might have which
specific needs (nonprofits often already have a very clear community need in
mind when starting out with a new program -- however, the emerging practice of
nonprofit business development, or earned income development, often starts by
researching a broad group of clients to identify new opportunities for
programs)
2. How those needs might be met for each group (or target market), which suggests
how a product might be designed tomeet the need (nonprofits might think in
terms of outcomes, or changes, to accomplish among the groups of clients in
order to meet the needs)
3. How each of the target markets might choose to access the product, etc. (its
"packaging")
4. How much the customers/clients might be willing pay and how (pricing analysis)
5. Who the competitors are (competitor analysis)
6. How to design and describe the product such that customers/clients will buy
from the organization, rather than from its competitors (its unique value
proposition)
7. How the product should be identified -- its personality -- to be most
identifiable (its naming and branding)
Outbound Marketing Includes:
1. Advertising and promotions (focused on the product)
2. Sales
3. Public and media relations (focused on the entire organization)
4. Customer service
5. Customer satisfaction
Too often, people jump right to the outbound marketing. As a result, they often end up trying to push products onto people who really don't want the products at all. Effective inbound marketing often results in much more effective -- and less difficult -- outbound marketing and sales.
Sunday, August 8, 2010
Positive - Market Segmentation
Market segmenting is dividing the market into groups of individual markets with similar wants or needs that a company divides the market into distinct groups who have distinct needs, wants, behavior or who might want different products & services. Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private although industrial market segmentation is quite different from consumer market segmentation, both have similar objectives. All of these methods of segmentation are merely proxies for true segments, which don't always fit into convenient demographic boundaries.
Consumer-based market segmentation can be performed on a product specific basis, to provide a close match between specific products and individuals. However, a number of generic market segment systems also exist, e.g. the Nielsen Claritas PRIZM system provides a broad segmentation of the population of the United States based on the statistical analysis of household and geo-demographic data.
The process of segmentation is distinct from targeting (choosing which segments to address) and positioning (designing an appropriate marketing mix for each segment). The overall intent is to identify groups of similar customers and potential customers; to prioritize the groups to address; to understand their behavior; and to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment. Revenues are thus improved.
Improved segmentation can lead to significantly improved marketing effectiveness. Distinct segments can have different industry structures and thus have higher or lower attractiveness (Michael Porter). With the right segmentation, the right lists can be purchased, advertising results can be improved and customer satisfaction can be increased leading to better reputation.
Consumer-based market segmentation can be performed on a product specific basis, to provide a close match between specific products and individuals. However, a number of generic market segment systems also exist, e.g. the Nielsen Claritas PRIZM system provides a broad segmentation of the population of the United States based on the statistical analysis of household and geo-demographic data.
The process of segmentation is distinct from targeting (choosing which segments to address) and positioning (designing an appropriate marketing mix for each segment). The overall intent is to identify groups of similar customers and potential customers; to prioritize the groups to address; to understand their behavior; and to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment. Revenues are thus improved.
Improved segmentation can lead to significantly improved marketing effectiveness. Distinct segments can have different industry structures and thus have higher or lower attractiveness (Michael Porter). With the right segmentation, the right lists can be purchased, advertising results can be improved and customer satisfaction can be increased leading to better reputation.
Market segmentation
Market segmentation is a concept in economics and marketing. A market segment is a sub-set of a market made up of people or organizations sharing with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. A true market segment meets all of the following criteria: it is distinct from other segments (different segments have different needs), it is homogeneous within the segment (exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a market intervention. The term is also used when consumers with identical product and/or service needs are divided up into groups so they can be charged different amounts. These can broadly be viewed as 'positive' and 'negative' applications of the same idea, splitting up the market into smaller groups.
Examples:
* Age
* Gender
* Price
* Interests
While there may be theoretically 'ideal' market segments, in reality every organization engaged in a market will develop different ways of imagining market segments, and create Product differentiation strategies to exploit these segments. The market segmentation and corresponding product differentiation strategy can give a firm a temporary commercial advantage.
Examples:
* Age
* Gender
* Price
* Interests
While there may be theoretically 'ideal' market segments, in reality every organization engaged in a market will develop different ways of imagining market segments, and create Product differentiation strategies to exploit these segments. The market segmentation and corresponding product differentiation strategy can give a firm a temporary commercial advantage.
Promotion (marketing)
Promotion is one of the four elements of marketing mix (product, price, promotion, distribution). It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision.
The following are two types of Promotion:
* Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers, Internet, Mobile Phones, and, historically, illustrated songs) in which the advertiser pays an advertising agency to place the ad
* Below the line promotion: All other promotion. Much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place. E.g. sponsorship, product placement, endorsements, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows
The specification of five elements creates a promotional mix or promotional plan. These elements are personal selling, advertising, sales promotion, direct marketing, and publicity. A promotional mix specifies how much attention to pay to each of the five subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. Fundamentally, however there are three basic objectives of promotion. These are: 1.) To present information to consumers as well as others 2.)To increase demand 3.)To differentiate a product.
There are different ways to promote a product in different areas of media. Promoters use internet advertisement, special events, endorsements, and newspapers to advertise their product. Many times with the purchase of a product there is an incentive like discounts, free items, or a contest. This is to increase the sales of a given product.
The term "promotion" is usually an in expression used internally by the marketing company, but not normally to the public or the market - phrases like "special offer" are more common. An example of a fully integrated, long-term, large-scale promotion are My Coke Rewards and Pepsi Stuff.
The following are two types of Promotion:
* Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers, Internet, Mobile Phones, and, historically, illustrated songs) in which the advertiser pays an advertising agency to place the ad
* Below the line promotion: All other promotion. Much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place. E.g. sponsorship, product placement, endorsements, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows
The specification of five elements creates a promotional mix or promotional plan. These elements are personal selling, advertising, sales promotion, direct marketing, and publicity. A promotional mix specifies how much attention to pay to each of the five subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. Fundamentally, however there are three basic objectives of promotion. These are: 1.) To present information to consumers as well as others 2.)To increase demand 3.)To differentiate a product.
There are different ways to promote a product in different areas of media. Promoters use internet advertisement, special events, endorsements, and newspapers to advertise their product. Many times with the purchase of a product there is an incentive like discounts, free items, or a contest. This is to increase the sales of a given product.
The term "promotion" is usually an in expression used internally by the marketing company, but not normally to the public or the market - phrases like "special offer" are more common. An example of a fully integrated, long-term, large-scale promotion are My Coke Rewards and Pepsi Stuff.
Services marketing
Services marketing, as the label suggests, relates to the marketing of services, as opposed to tangible products (in standard economic terminology, a tangible product is called a good).
A typical definition of a service (as opposed to a good) is thus:
* The use of it is inseparable from its purchase (,i.e. a service is used and
consumed simultaneously)
* It does not possess material form, and thus cannot be smelt, heard, tasted, or
felt.
* The use of a service is inherently subjective, in that due to the human
condition, all persons experiencing a service would experience it uniquely.
As examples of the above points, a train ride can be deemed as a service. If one buys a train ticket, the use of the train is typically experienced concurrently with the purchase of the ticket. Moreover, a train ride cannot be smelt, heard, tasted or felt as such. Granted, a seat can be felt, and the train can be evidently heard, nonetheless one is not paying for the permanent ownership of the tangible components of the train.
Services (by comparison with goods) can also be viewed as a spectrum. Not all products are pure goods, nor are all pure services. The aforementioned example of a train ride can be deemed a pure service, whilst a packet of potato chips can be deemed a pure good. An intermediary example may be a restaurant (as the waiter service is intangible, and the food evidently is tangible in form).
A typical definition of a service (as opposed to a good) is thus:
* The use of it is inseparable from its purchase (,i.e. a service is used and
consumed simultaneously)
* It does not possess material form, and thus cannot be smelt, heard, tasted, or
felt.
* The use of a service is inherently subjective, in that due to the human
condition, all persons experiencing a service would experience it uniquely.
As examples of the above points, a train ride can be deemed as a service. If one buys a train ticket, the use of the train is typically experienced concurrently with the purchase of the ticket. Moreover, a train ride cannot be smelt, heard, tasted or felt as such. Granted, a seat can be felt, and the train can be evidently heard, nonetheless one is not paying for the permanent ownership of the tangible components of the train.
Services (by comparison with goods) can also be viewed as a spectrum. Not all products are pure goods, nor are all pure services. The aforementioned example of a train ride can be deemed a pure service, whilst a packet of potato chips can be deemed a pure good. An intermediary example may be a restaurant (as the waiter service is intangible, and the food evidently is tangible in form).
Use of technologies Marketing
Marketing management can also note the importance of technology, within the scope of its marketing efforts. Computer-based information systems can be employed, aiding in a better processing and storage of data. Marketing researchers can use such systems to devise better methods of converting data into information, and for the creation of enhanced data gathering methods. Information technology can aid in improving an MKIS' software and hardware components, to improve a company's marketing decision-making process.
In recent years, the netbook personal computer has gained significant market share among laptops, largely due to its more user-friendly size and portability. Information technology typically progress at a fast rate, leading to marketing managers being cognizant of the latest technological developments. Moreover, the launch of smartphones into the cellphone market is commonly derived from a demand among consumers for more technologically advanced products. A firm can lose out to competitors, should it refrain from noting the latest technological occurrences in its industry.
Technological advancements can facilitate lesser barriers between countries and regions. Via using the World Wide Web, firms can quickly dispatch information from one country to another, without much restriction. Prior to the mass usage of the Internet, such transfers of information would have taken longer to send, especially if via snail mail, telex, etc.
In recent years, the netbook personal computer has gained significant market share among laptops, largely due to its more user-friendly size and portability. Information technology typically progress at a fast rate, leading to marketing managers being cognizant of the latest technological developments. Moreover, the launch of smartphones into the cellphone market is commonly derived from a demand among consumers for more technologically advanced products. A firm can lose out to competitors, should it refrain from noting the latest technological occurrences in its industry.
Technological advancements can facilitate lesser barriers between countries and regions. Via using the World Wide Web, firms can quickly dispatch information from one country to another, without much restriction. Prior to the mass usage of the Internet, such transfers of information would have taken longer to send, especially if via snail mail, telex, etc.
B2C buying behaviour
This mode of behaviour concerns consumers, in the purchase of a given product. As an example, if one pictures a pair of sneakers, the desire for a pair of sneakers would be followed by an information search on available types/brands. This may include perusing media outlets, but most commonly consists of information gathered from family and friends.If the information search is insufficient, the consumer may search for alternative means to satisfy the need/want. In this case, this may be buying leather shoes, sandals, etc. The purchase decision is then made, in which the consumer actually buys the product. Following this stage, a post-purchase evaluation is often conducted, comprising an appraisal of the value/utility brought by the purchase of the sneakers. If the value/utility is high, then a repeat purchase may be bought. This could then develop into consumer loyalty, for the firm producing the pair of sneakers.
Marketing strategy
The field of marketing strategy encompasses the strategy involved in the management of a given product.
A given firm may hold numerous products in the marketplace, spanning numerous and sometimes wholly unrelated industries. Accordingly, a plan is required in order to manage effectively such products. Evidently, a company needs to weigh up and ascertain how to utilize effectively its finite resources. As an example, a start-up car manufacturing firm would face little success, should it attempt to rival immediately Toyota, Ford, Nissan or any other large global car maker. Moreover, a product may be reaching the end of its life-cycle. Thus, the issue of divest, or a ceasing of production may be made. With regard to the aforesaid questions, each scenario requires a unique marketing strategy to be employed. Below are listed some prominent marketing strategy models, which seek to propose means to answer the preceding questions.
A given firm may hold numerous products in the marketplace, spanning numerous and sometimes wholly unrelated industries. Accordingly, a plan is required in order to manage effectively such products. Evidently, a company needs to weigh up and ascertain how to utilize effectively its finite resources. As an example, a start-up car manufacturing firm would face little success, should it attempt to rival immediately Toyota, Ford, Nissan or any other large global car maker. Moreover, a product may be reaching the end of its life-cycle. Thus, the issue of divest, or a ceasing of production may be made. With regard to the aforesaid questions, each scenario requires a unique marketing strategy to be employed. Below are listed some prominent marketing strategy models, which seek to propose means to answer the preceding questions.
Marketing planning
The area of marketing planning involves forging a plan for a firm's marketing activities. A marketing plan can also pertain to a specific product, as well as to an organization's overall marketing strategy. Generally speaking, an organization's marketing planning process is derived from its overall business strategy. Thus, when top management are devising the firm's strategic direction or mission, the intended marketing activities are incorporated into this plan. There are several levels of marketing objectives within an organization. The senior management of a firm would formulate a general business strategy for a firm. However, this general business strategy would be interpreted and implemented in different contexts throughout the firm.
Saturday, August 7, 2010
MARKETING-1
In recent years, attention to social and environmental issues in product marketing has become a mainstream practice and offers opportunities for firms to differentiate themselves in the market. Popular examples abound: organic produce, hybrid cars, and fair trade coffee, to name just a few. While business coursework is quickly following practice in the field, our data show that a critical examination of the social impact of marketing is limited in some instances to issues of legality and ethics. When ethical concerns are raised, they are commonly discussed in the context of avoiding harmful marketing practices, especially prohibitive product pricing and deceptive advertising. On the other hand, international marketing classes do a good job of discussing socio-cultural considerations in the analysis of new target
markets.
It is noteworthy that a handful of MBA programs offer courses specifically addressing “social marketing”; that is, using concepts from commercial marketing, such as the traditional “four P’s” marketing mix (i.e., Product, Place, Promotion, and Pricing), to bring about social change. Also, academic research has highlighted the use of, and further potential for, social marketing for environmental causes.1 A few of these forward-looking strategic marketing courses are highlighted in the “notable coursework” section below.
markets.
It is noteworthy that a handful of MBA programs offer courses specifically addressing “social marketing”; that is, using concepts from commercial marketing, such as the traditional “four P’s” marketing mix (i.e., Product, Place, Promotion, and Pricing), to bring about social change. Also, academic research has highlighted the use of, and further potential for, social marketing for environmental causes.1 A few of these forward-looking strategic marketing courses are highlighted in the “notable coursework” section below.
Friday, August 6, 2010
Marketing Plan Manual
A sound marketing plan is a must if your business is to be successful. This is an outstanding template for developing a success-oriented marketing plan. It is one of the most thorough and user-friendly marketing planning resources available."
Because having a comprehensive and sound marketing plan can mean the difference between success and failure, it is important that your marketing plan be written carefully.
The Marketing Plan Manual is a complete guide that includes all of the instructions, forms and templates needed to write the kind of plan that will help ensure high levels of success. This manual will help you:
* Differentiate your company and products from your competition.
* Gain a competitive advantage.
* Create effective marketing objectives and strategies that support
organizational goals.
* Organize and analyze information and data needed to develop your plan.
* Strategically identify and define your target markets.
* Develop realistic and attainable sales projections.
* Price your products to maximize margins and volume.
* Define an advertising and promotion plan that will help optimize sales and
profits.
* Build a distribution channel that maximizes revenues and customer satisfaction.
* Establish your marketing and sales personnel needs.
* Develop a marketing budget that makes sense.
* Incorporate market research into your decision making process.
* Create an action plan that defines each activity or task, who is responsible
for ensuring their completion, and when they must be completed.
* Write a complete and comprehensive marketing plan that will get the results
you want.
Your marketing plan should be written in a manner that is straightforward, practical, and realistic. And it should give you the best possible chance of meeting or exceeding sales and gross profit objectives.
This comprehensive guide walks you through the entire process of writing a marketing plan and will help you gain a competitive and strategic advantage.
Written by seasoned business and marketing professionals who understand how to think strategically, develop plans that differentiate a company and its products from the competition, and achieve high levels of success, this manual offers enlightening and insightful direction on just how a winning marketing plan should be prepared. It includes everything you will need to create your plan.
The Marketing Plan Manual is widely used by organizations of all types and sizes ranging from some of the world's largest companies to small start-up businesses. It works equally well in small and large businesses as well as both for-profit and nonprofit organizations.
Included are straightforward templates and worksheets to guide you through the development of your plan. And each element of the marketing plan is discussed and explained in detail. It is easy-to-follow and easy-to-use.
Because having a comprehensive and sound marketing plan can mean the difference between success and failure, it is important that your marketing plan be written carefully.
The Marketing Plan Manual is a complete guide that includes all of the instructions, forms and templates needed to write the kind of plan that will help ensure high levels of success. This manual will help you:
* Differentiate your company and products from your competition.
* Gain a competitive advantage.
* Create effective marketing objectives and strategies that support
organizational goals.
* Organize and analyze information and data needed to develop your plan.
* Strategically identify and define your target markets.
* Develop realistic and attainable sales projections.
* Price your products to maximize margins and volume.
* Define an advertising and promotion plan that will help optimize sales and
profits.
* Build a distribution channel that maximizes revenues and customer satisfaction.
* Establish your marketing and sales personnel needs.
* Develop a marketing budget that makes sense.
* Incorporate market research into your decision making process.
* Create an action plan that defines each activity or task, who is responsible
for ensuring their completion, and when they must be completed.
* Write a complete and comprehensive marketing plan that will get the results
you want.
Your marketing plan should be written in a manner that is straightforward, practical, and realistic. And it should give you the best possible chance of meeting or exceeding sales and gross profit objectives.
This comprehensive guide walks you through the entire process of writing a marketing plan and will help you gain a competitive and strategic advantage.
Written by seasoned business and marketing professionals who understand how to think strategically, develop plans that differentiate a company and its products from the competition, and achieve high levels of success, this manual offers enlightening and insightful direction on just how a winning marketing plan should be prepared. It includes everything you will need to create your plan.
The Marketing Plan Manual is widely used by organizations of all types and sizes ranging from some of the world's largest companies to small start-up businesses. It works equally well in small and large businesses as well as both for-profit and nonprofit organizations.
Included are straightforward templates and worksheets to guide you through the development of your plan. And each element of the marketing plan is discussed and explained in detail. It is easy-to-follow and easy-to-use.
Wednesday, August 4, 2010
Marketing Frame of Reference and Points of Parity
A Marketing Practice reader asks this very pertinent question " What is frame of reference and points of parity and their role in branding ?"
Frame of reference is the framework used by the consumers to make sense of the product in question. Humans understand and remember new things by linking it to existing (known) objects. Frame of reference is that evaluative criterion which is used by consumers to make a better understanding of the product/services. Frame of reference also explains the context in which consumers tend to evaluate /place the product. For example , the frame of reference used to evaluate Frooti is that it is a mango drink. Coca Cola Cola, Ace Mini Truck, Dettol Antiseptic etc. If Frooti launches an Apple Drink, the consumers will find it difficult to accept the product since it is out of the frame of reference used to evaluate/understand Frooti
Since consumers use a frame of reference in understanding a product, the concept has a very important place in the positioning of the product. Positioning is defined as the act of designing the company's offering and image to occupy a distinctive place in the mind of the target market ( Kotler). The first task of the marketer is to identify the frame of reference used by the target market in evaluating the product/service. Once the frame of reference is identified, the marketer will position the product in line with the frame of reference. In case of products that lack a frame of reference, marketers should create a frame of reference for the consumers.
The concept of Points of Parity helps marketers to place the product in line with the consumer's frame of reference. Points of parity are those associations that are not necessarily unique to the brand but may in fact be shared with other brands. There are two forms of Points of Parity - Category POP and Competitive POP. Category POP are those associations that consumers view as being necessary to be a legitimate and credible offering with a certain product or service category.Competitive POP are those associations designed to negate competitor's Points of Parity ( Kevin Keller).
In simple terms , when a product is launched, the marketer should tell the customer about the category in which the product belongs ( category POP). This task is important for products which belong to a new category. For example , hand sanitizer is a new category and consumers are not aware of such a category. So when a brand is being launched in such a new category, brand managers should first establish a category POP. For that , the consumers should be made aware of such a category. Right now marketers are using infomercials to educate the consumers about hand sanitizer, its advantages and uses. Once the frame of reference is established ,then the brand should be placed in the category. Usually marketers use packaging, product form and labels to establish category points of parity.
Competitor POP is where marketers tell the consumers that their brand have all the properties/qualities of their competing brands. For example Lifebuoy soap will establish competitive POP with Dettol soap by claiming that it has germ killing qualities and vice versa.
These strategies will fail if the marketers did not understand the frame of reference used by consumers in evaluating the product. This lack of understanding can lead to positioning failures that eventually lead to product failure.
Frame of reference is the framework used by the consumers to make sense of the product in question. Humans understand and remember new things by linking it to existing (known) objects. Frame of reference is that evaluative criterion which is used by consumers to make a better understanding of the product/services. Frame of reference also explains the context in which consumers tend to evaluate /place the product. For example , the frame of reference used to evaluate Frooti is that it is a mango drink. Coca Cola Cola, Ace Mini Truck, Dettol Antiseptic etc. If Frooti launches an Apple Drink, the consumers will find it difficult to accept the product since it is out of the frame of reference used to evaluate/understand Frooti
Since consumers use a frame of reference in understanding a product, the concept has a very important place in the positioning of the product. Positioning is defined as the act of designing the company's offering and image to occupy a distinctive place in the mind of the target market ( Kotler). The first task of the marketer is to identify the frame of reference used by the target market in evaluating the product/service. Once the frame of reference is identified, the marketer will position the product in line with the frame of reference. In case of products that lack a frame of reference, marketers should create a frame of reference for the consumers.
The concept of Points of Parity helps marketers to place the product in line with the consumer's frame of reference. Points of parity are those associations that are not necessarily unique to the brand but may in fact be shared with other brands. There are two forms of Points of Parity - Category POP and Competitive POP. Category POP are those associations that consumers view as being necessary to be a legitimate and credible offering with a certain product or service category.Competitive POP are those associations designed to negate competitor's Points of Parity ( Kevin Keller).
In simple terms , when a product is launched, the marketer should tell the customer about the category in which the product belongs ( category POP). This task is important for products which belong to a new category. For example , hand sanitizer is a new category and consumers are not aware of such a category. So when a brand is being launched in such a new category, brand managers should first establish a category POP. For that , the consumers should be made aware of such a category. Right now marketers are using infomercials to educate the consumers about hand sanitizer, its advantages and uses. Once the frame of reference is established ,then the brand should be placed in the category. Usually marketers use packaging, product form and labels to establish category points of parity.
Competitor POP is where marketers tell the consumers that their brand have all the properties/qualities of their competing brands. For example Lifebuoy soap will establish competitive POP with Dettol soap by claiming that it has germ killing qualities and vice versa.
These strategies will fail if the marketers did not understand the frame of reference used by consumers in evaluating the product. This lack of understanding can lead to positioning failures that eventually lead to product failure.
Saturday, July 31, 2010
IKON Marketing Consultants
IKON Marketing Consultants was established in 2001 by founder and Chairman Azaz Motiwala-a highly experienced and professional marketing expert. IKON helps clients with expert advices and solutions on various areas of marketing to achieve success with sustainable business growth.
IKON is one of the few marketing strategy consulting firms that specialized in developing and implementing results-oriented marketing strategy and plan for marketing in India and International Market. IKON provides expertise marketing solution with the added dimension and know-how to implement aggressive marketing strategies and plan that produce results.
IKON's expert team consists of highly qualified and experienced marketing professionals performing on each consulting assignments with focus and dedication, delivers perfect solution and results within a timeline.
We keep our selves updated with present economic and market environment which help us to design perfect marketing solutions for clients. We perform marketing consulting practice on a national/international basis and accept new clients only by referral or interview.
IKON is one of the few marketing strategy consulting firms that specialized in developing and implementing results-oriented marketing strategy and plan for marketing in India and International Market. IKON provides expertise marketing solution with the added dimension and know-how to implement aggressive marketing strategies and plan that produce results.
IKON's expert team consists of highly qualified and experienced marketing professionals performing on each consulting assignments with focus and dedication, delivers perfect solution and results within a timeline.
We keep our selves updated with present economic and market environment which help us to design perfect marketing solutions for clients. We perform marketing consulting practice on a national/international basis and accept new clients only by referral or interview.
Wednesday, July 28, 2010
Conceptos asociados
* Necesidades, deseos y demanda: la necesidad es un estado interno de tensión provocado cuando no existe un equilibrio entre lo requerido y lo que se tiene o posee. Cuando las necesidades se traducen o enuncian en objetos específicos nos encontramos con los deseos, es decir , los deseos son necesidades orientadas hacia satisfactores específicos para el individuo. La demanda es el deseo de adquirir un producto, pero con el agregado de que se tiene que tener la capacidad de adquirirlo
El marketing no crea las necesidades, estas son inherentes a las personas, el marketing orienta los deseos y crea demanda de determinado producto y marca; necesidad de saciar la sed, deseo de tomar gaseosa, demanda de bebida cola marca.
* Valor y Satisfacción: el valor es la relación que establece el cliente entre los beneficios(funcionales, status,etc) que percibe del producto que se ofrece y los costo(económicos, tiempo, esfuerzos) que representa adquirirlo. La satisfacción es el conjunto de sensaciones de placer o decepción que tiene una persona al comparar el desempeño o resultado percibido de un producto con las expectativas que tenia del mismo.
* Intercambio: implica la participación de dos o mas partes que ceden algo para obtener una cosa a cambio, estos intercambio tienen que ser mutuamente beneficiosos entre la empresa y el cliente, para construir una relación satisfactoria de largo plazo.
El marketing no crea las necesidades, estas son inherentes a las personas, el marketing orienta los deseos y crea demanda de determinado producto y marca; necesidad de saciar la sed, deseo de tomar gaseosa, demanda de bebida cola marca.
* Valor y Satisfacción: el valor es la relación que establece el cliente entre los beneficios(funcionales, status,etc) que percibe del producto que se ofrece y los costo(económicos, tiempo, esfuerzos) que representa adquirirlo. La satisfacción es el conjunto de sensaciones de placer o decepción que tiene una persona al comparar el desempeño o resultado percibido de un producto con las expectativas que tenia del mismo.
* Intercambio: implica la participación de dos o mas partes que ceden algo para obtener una cosa a cambio, estos intercambio tienen que ser mutuamente beneficiosos entre la empresa y el cliente, para construir una relación satisfactoria de largo plazo.
Marketing - Concepto y objetivo
El mercadeo tiene como objetivo principal favorecer el intercambio entre dos partes de modo que ambas resulten beneficiadas. Según Kotler, se entiende por intercambio «el acto de obtener un producto deseado de otra persona, ofreciéndole algo a cambio». Para que esto se produzca, es necesario que se den cinco condiciones:
1. Debe haber al menos dos partes.
2. Cada parte debe tener algo que supone valor para la otra.
3. Cada parte debe ser capaz de comunicar y entregar.
4. Cada parte debe ser libre de aceptar o rechazar la oferta.
5. Cada parte debe creer que es apropiado.
Si por algún motivo, alguna de las partes implicadas en el intercambio no queda satisfecha, evitará que se repita de nuevo dicho intercambio.
Como disciplina de influencias científicas, el marketing es un conjunto de principios, metodologías y técnicas a través de las cuales se busca conquistar un mercado, colaborar en la obtención de los objetivos de la organización, y satisfacer las necesidades y deseos de los consumidores o clientes.
El marketing es la orientación con la que se administra el mercadeo o la comercialización dentro de una organización. Asímismo, busca fidelizar clientes, mediante herramientas y estrategias; posiciona en la mente del consumidor un producto, marca, etc. buscando ser la opción principal y llegar al usuario final; parte de las necesidades del cliente o consumidor, para diseñar, organizar, ejecutar y controlar la función comercializadora o mercadeo de la organización.
El vocablo marketing se refiere también a una función o área funcional de la organización: el área de marketing, área comercial, el departamento de marketing, etc. Otra forma de definir este concepto es considerar marketing todo aquello que una empresa puede hacer para ser percibida en el mercado (consumidores finales), con una visión de rentabilidad a corto y a largo plazo.
Una organización que quiere lograr que los consumidores tengan una visión y opinión positivas de ella y de sus productos, debe gestionar el propio producto, su precio, su relación con los clientes, con los proveedores y con sus propios empleados, la propia publicidad en diversos medios y soportes, la presencia en los medios de comunicación (relaciones públicas), etc. Todo eso es parte del marketing.
1. Debe haber al menos dos partes.
2. Cada parte debe tener algo que supone valor para la otra.
3. Cada parte debe ser capaz de comunicar y entregar.
4. Cada parte debe ser libre de aceptar o rechazar la oferta.
5. Cada parte debe creer que es apropiado.
Si por algún motivo, alguna de las partes implicadas en el intercambio no queda satisfecha, evitará que se repita de nuevo dicho intercambio.
Como disciplina de influencias científicas, el marketing es un conjunto de principios, metodologías y técnicas a través de las cuales se busca conquistar un mercado, colaborar en la obtención de los objetivos de la organización, y satisfacer las necesidades y deseos de los consumidores o clientes.
El marketing es la orientación con la que se administra el mercadeo o la comercialización dentro de una organización. Asímismo, busca fidelizar clientes, mediante herramientas y estrategias; posiciona en la mente del consumidor un producto, marca, etc. buscando ser la opción principal y llegar al usuario final; parte de las necesidades del cliente o consumidor, para diseñar, organizar, ejecutar y controlar la función comercializadora o mercadeo de la organización.
El vocablo marketing se refiere también a una función o área funcional de la organización: el área de marketing, área comercial, el departamento de marketing, etc. Otra forma de definir este concepto es considerar marketing todo aquello que una empresa puede hacer para ser percibida en el mercado (consumidores finales), con una visión de rentabilidad a corto y a largo plazo.
Una organización que quiere lograr que los consumidores tengan una visión y opinión positivas de ella y de sus productos, debe gestionar el propio producto, su precio, su relación con los clientes, con los proveedores y con sus propios empleados, la propia publicidad en diversos medios y soportes, la presencia en los medios de comunicación (relaciones públicas), etc. Todo eso es parte del marketing.
Saturday, July 24, 2010
Create Your Marketing Plan
Your marketing plan should be a clear, concise, and well thought out document that guides you through your marketing program. It should focus on the objective of your marketing and how you intend to accomplish that objective. Whether your company provides products or services, your marketing plan is essential to your success.
The six major elements to creating a successful marketing plan are listed below. You may only need only a sentence or two per section... or you might want to break each down into a few succinct bullet points.
1. The Purpose
2. Your Target Customer
3. The Benefits of Your Product or Service
4. Your Positioning
5. Your Marketing Tactics
6. Your Marketing Budget
As you go through each section, keep the following tips and hints in mind:
Keep your marketing plan simple.
Many small business owners get so involved in details that they lose sight of their goals. By keeping your plan simple, you will create a clear roadmap that focuses on what you need to accomplish.
Write your marketing plan down (as opposed to thinking about it and keeping it in your head).
It is important to have a document that will remind you what you are trying to accomplish.
Be direct and be clear.
If you're not sure, ask a friend, relative, colleague or employee to read your plan. They should immediately grasp your goals.
Don't build in too much flexibility.
You may be tempted to plan for various market contingencies. If your market changes that quickly, then you should incorporate that into your plan. But create a strategy you can keep to - that's the purpose of having a plan in the first place.
Review your marketing plan often - quarterly or even monthly.
That doesn't mean you have to revise it every month. But take some time to evaluate it and make sure you're on track.
The six major elements to creating a successful marketing plan are listed below. You may only need only a sentence or two per section... or you might want to break each down into a few succinct bullet points.
1. The Purpose
2. Your Target Customer
3. The Benefits of Your Product or Service
4. Your Positioning
5. Your Marketing Tactics
6. Your Marketing Budget
As you go through each section, keep the following tips and hints in mind:
Keep your marketing plan simple.
Many small business owners get so involved in details that they lose sight of their goals. By keeping your plan simple, you will create a clear roadmap that focuses on what you need to accomplish.
Write your marketing plan down (as opposed to thinking about it and keeping it in your head).
It is important to have a document that will remind you what you are trying to accomplish.
Be direct and be clear.
If you're not sure, ask a friend, relative, colleague or employee to read your plan. They should immediately grasp your goals.
Don't build in too much flexibility.
You may be tempted to plan for various market contingencies. If your market changes that quickly, then you should incorporate that into your plan. But create a strategy you can keep to - that's the purpose of having a plan in the first place.
Review your marketing plan often - quarterly or even monthly.
That doesn't mean you have to revise it every month. But take some time to evaluate it and make sure you're on track.
Wednesday, July 21, 2010
Customer Application Development
Custom solutions & applications enable organizations to derive competitive advantage, to address gaps in the functionality provided by commercial packaged applications, to address aspects of the business process that are unique to them and to address business processes for which no solutions are available in the market. Both, customization of existing applications and creation of new custom applications requires business and IT teams to work very closely in understanding business processes and clearly identifying requirements.
Abaris Softtech Incorporation specializes in working closely with business users while implementing solutions for their requirements through high-quality IT systems.We understand that the high failure rate for application development projects is due to disconnect between business users and IT teams.Our approach spends most amounts of time and resource during the requirements and design phase than any other part of the project. We use a pre-defined backbone framework for project delivery filled with timely milestones and checkpoint
Abaris Softtech Incorporation specializes in working closely with business users while implementing solutions for their requirements through high-quality IT systems.We understand that the high failure rate for application development projects is due to disconnect between business users and IT teams.Our approach spends most amounts of time and resource during the requirements and design phase than any other part of the project. We use a pre-defined backbone framework for project delivery filled with timely milestones and checkpoint
Marketing Research @Abaris Softtech Incorporation
Abaris Softtech Incorporation has a long span in the area of Information Technology.We provide a absolute solution of our client requirment .Abaris Softtech Incorporation has a strong infrastructure and IT theme in managing and supporting enterprise applications for its customers.Our Business and Application management processes are predicated on ensuring that systems are flexible and evolve with customer needs. We enable systems to constantly change and incorporate newer tools and technologies into base applications. With an ever-growing ,ever-learning and ever-technical-skill's enhancing team of experts, we become watchdogs that lookout for newer tools and technologies that can be incorporated into customer applications. This ensures smooth transitions and incorporation of efficiencies as the system grows and as newer technologies become available.
Organizations make significant IT investments to enhance business processes and derive appropriate returns. These investments are made over a period of time and spread across the technology spectrum; spanning from legacy platform to client-server systems to more contemporary multi-tier browser based systems. In an environment where businesses are continuously changing and newer tools and better technologies are emerging; managing IT to keep in step with business, while leveraging existing assets, is one of the biggest challenges facing organizations. It is imperative for organizational success that IT becomes more effective and efficient in managing existing assets, while providing business the edge to compete.
Organizations make significant IT investments to enhance business processes and derive appropriate returns. These investments are made over a period of time and spread across the technology spectrum; spanning from legacy platform to client-server systems to more contemporary multi-tier browser based systems. In an environment where businesses are continuously changing and newer tools and better technologies are emerging; managing IT to keep in step with business, while leveraging existing assets, is one of the biggest challenges facing organizations. It is imperative for organizational success that IT becomes more effective and efficient in managing existing assets, while providing business the edge to compete.
Books-Marketing
* E-Marketing (International Edition), by Judy Strauss, Adel El-Ansary and Raymond Frost, Pearson-Prentice Hall, 2006, 4th edition, ISBN: 0-13-196902-1
* Strategic Internet Marketing, by Dann and Dann, 2nd Edition, Wiley, 2004, ISBN: 0-470-80427-0
* International E-Business Marketing, by Fletcher, Bell and McNaughton, THOMSON, 2004, ISBN: 1-86152-945-7
* Internet Marketing: Foundations and Applications, 2nd Edition, by Carolyn Siegel, Houghton Mifflin Company, 2006, ISBN:0-618-51999-8
* Internet Marketing: building advantage in a networked economy, by Rafi Mohammed, Robert Fisher, Bernard Jaworski and Aileen Cahill, McGraw-Hill /Irwin, 2002, ISBN:0-07-251022-6.
* Internet Marketing – Strategy, Implementation and Practice, 3rd Edition, by Dave Chaffey, Fiona Ellis-Chadwick, Kevin Johnston and Richard Mayer, 2006, Prentice Hall-Financial Times (Pearson Education), ISBN: 0-273-69405-7.
* Customer Relationship Management – Concepts and Tools, by Francis Buttle, Elsevier, 2004, ISBN: 0 7506 5502 X
* Customer Relationship Management – Perspectives from the Marketplace, by Knox, Maklan, Payne, Peppard and Ryals, Butterworth and Heinemann, 2003, ISBN: 0 7506 5677 8
* Handbook of CRM – Achieving Excellence in Customer Management, by A. Payne, Elsevier, Butterworth and Heinemann 2006, ISBN: 0-7506-6437-1
* Customer Relationship Management – Integrating Marketing Strategy and Information Technology, by Zikmund, McLeod and Gilbert, Wiley, 2003, ISBN: 0-471-27137-3
* Turban, E., Lee, J.K., King, D., McKay, J. and Marshall, P. (2008) Electronic Commerce 2008: A Managerial Perspective, Fifth Edition, Pearson - Prentice Hall, ISBN: 0-13-2243318
* Farhoomand A. & Lovelock P., (2001). Global eCommerce: text and cases, Prentice Hall.
* Buttle, F. (2004). Customer Relationship Management: Concepts and Tools, Elsevier.
* Doukidis, G. and Vrechopoulos, A. (Eds). (2005). Consumer Driven Electronic Transformation: Applying New Technologies to Enthuse Consumers and Transform the Supply Chain, Springer-Verlag.
* Strategic Internet Marketing, by Dann and Dann, 2nd Edition, Wiley, 2004, ISBN: 0-470-80427-0
* International E-Business Marketing, by Fletcher, Bell and McNaughton, THOMSON, 2004, ISBN: 1-86152-945-7
* Internet Marketing: Foundations and Applications, 2nd Edition, by Carolyn Siegel, Houghton Mifflin Company, 2006, ISBN:0-618-51999-8
* Internet Marketing: building advantage in a networked economy, by Rafi Mohammed, Robert Fisher, Bernard Jaworski and Aileen Cahill, McGraw-Hill /Irwin, 2002, ISBN:0-07-251022-6.
* Internet Marketing – Strategy, Implementation and Practice, 3rd Edition, by Dave Chaffey, Fiona Ellis-Chadwick, Kevin Johnston and Richard Mayer, 2006, Prentice Hall-Financial Times (Pearson Education), ISBN: 0-273-69405-7.
* Customer Relationship Management – Concepts and Tools, by Francis Buttle, Elsevier, 2004, ISBN: 0 7506 5502 X
* Customer Relationship Management – Perspectives from the Marketplace, by Knox, Maklan, Payne, Peppard and Ryals, Butterworth and Heinemann, 2003, ISBN: 0 7506 5677 8
* Handbook of CRM – Achieving Excellence in Customer Management, by A. Payne, Elsevier, Butterworth and Heinemann 2006, ISBN: 0-7506-6437-1
* Customer Relationship Management – Integrating Marketing Strategy and Information Technology, by Zikmund, McLeod and Gilbert, Wiley, 2003, ISBN: 0-471-27137-3
* Turban, E., Lee, J.K., King, D., McKay, J. and Marshall, P. (2008) Electronic Commerce 2008: A Managerial Perspective, Fifth Edition, Pearson - Prentice Hall, ISBN: 0-13-2243318
* Farhoomand A. & Lovelock P., (2001). Global eCommerce: text and cases, Prentice Hall.
* Buttle, F. (2004). Customer Relationship Management: Concepts and Tools, Elsevier.
* Doukidis, G. and Vrechopoulos, A. (Eds). (2005). Consumer Driven Electronic Transformation: Applying New Technologies to Enthuse Consumers and Transform the Supply Chain, Springer-Verlag.
Tuesday, July 13, 2010
MARKETING CONCEPT AND PHILOSOPHY
The marketing concept and philosophy is one of the simplest ideas in marketing, and at the same time, it is also one of the most important marketing philosophies. At its very core are the customer and his or her satisfaction. The marketing concept and philosophy states that the organization should strive to satisfy its customers' wants and needs while meeting the organization's goals. In simple terms, "the customer is king".
The implication of the marketing concept is very important for management. It is not something that the marketing department administers, nor is it the sole domain of the marketing department. Rather, it is adopted by the entire organization. From top management to the lowest levels and across all departments of the organization, it is a philosophy or way of doing business. The customers' needs, wants, and satisfaction should always be foremost in every manager and employees' mind. Wal-Mart's motto of "satisfaction guaranteed" is an example of the marketing concept. Whether the Wal-Mart employee is an accountant or a cashier, the customer is always first.
As simple as the philosophy sounds, the concept is not very old in the evolution of marketing thought. However, it is at the end of a succession of business philosophies that cover centuries. To gain a better understanding of the thought leading to the marketing concept, the history and evolution of the marketing concept and philosophy are examined first. Next, the marketing concept and philosophy and some misconceptions about it are discussed.
The implication of the marketing concept is very important for management. It is not something that the marketing department administers, nor is it the sole domain of the marketing department. Rather, it is adopted by the entire organization. From top management to the lowest levels and across all departments of the organization, it is a philosophy or way of doing business. The customers' needs, wants, and satisfaction should always be foremost in every manager and employees' mind. Wal-Mart's motto of "satisfaction guaranteed" is an example of the marketing concept. Whether the Wal-Mart employee is an accountant or a cashier, the customer is always first.
As simple as the philosophy sounds, the concept is not very old in the evolution of marketing thought. However, it is at the end of a succession of business philosophies that cover centuries. To gain a better understanding of the thought leading to the marketing concept, the history and evolution of the marketing concept and philosophy are examined first. Next, the marketing concept and philosophy and some misconceptions about it are discussed.
Marketing Career Vs Sales Career
Sir , I want to build a career in marketing but I don't like to do sales. How can I get a marketing job without doing sales ?
- I have come across this question a hundred times in my career as a teacher. The eager beaver MBAs wanting to build a career in the glamorous world of marketing without having to sweat it out in sales. By marketing careers, they mean all those jobs that involves creating marketing strategies, brand management etc and not the field sales jobs.
Understandably so !
Sales jobs , although plenty to find, are tougher than ever before. Many firms focusing on growth at any cost has virtually eliminated all possibilities of ethical selling. Many firms believe sales can be /should be done by everyone in the organisation irrespective of whether that person is fit for such a function. It is not how you sell but how much you sell that is now counted.
MBAs , from those tier II business schools ,who inevitably land in such sales jobs find their dreams of a professional marketing career shattered. The high pressure selling, four letter expletives, hire and fire stories, rude clients make their initial corporate years something comparable to hell. It seems to them that they are in a rut from where there is no escape...
Is this the marketing that Kotler speaks about ? When am I going to think about the strategies, 4 P's , branding etc ? How long am I going to wait till I get such a job ?
These are my thoughts about building a career in marketing !
My personal opinion is that it is better to have some hardcore sales experience in sales before thinking about a career in the so called glamorous world of Marketing. Sales will give you lot of inputs about customers, their needs, behaviour, how the channel works etc which will be of tremendous help to you when you enter into the world of marketing strategy. You will be able to device practical marketing strategy since you know how the market works.
Having some sales experience also acts as a career insurance . That experience will help you to be employable even in times of recession. Hence even if you have landed yourself in a sales job you did not like, it is better to stay there for the experience of it ( if all other factors like pay, working environment etc are good ). I have seen many students who initially were skeptical of a sales job later thriving in it. So shed all those inhibitions on being a Salesman. You have nothing to lose except those meaningless calender years.
Having said that, there are marketing jobs that young MBAs can look for which may not have a sales content. Marketing research , Analytics, Creatives, Designers, Retailing , Business Analysts etc are some of those marketing jobs where direct sales component is not present. But these jobs are limited and hard to get.
Also remember that hardcore marketing jobs like Brand Management, product management are often not advertised. Most of these jobs are filled through lateral placements. The point is that these jobs may not come to business school campuses other than the top 10. Hence the task is to network while on the job and find the right contact who can land you that dream job.
My advice to fresh MBAs is not to be heartbroken if you don't land up that marketing job of your dreams. Slog it on sales job , get some experience, network and land your dream job.
- I have come across this question a hundred times in my career as a teacher. The eager beaver MBAs wanting to build a career in the glamorous world of marketing without having to sweat it out in sales. By marketing careers, they mean all those jobs that involves creating marketing strategies, brand management etc and not the field sales jobs.
Understandably so !
Sales jobs , although plenty to find, are tougher than ever before. Many firms focusing on growth at any cost has virtually eliminated all possibilities of ethical selling. Many firms believe sales can be /should be done by everyone in the organisation irrespective of whether that person is fit for such a function. It is not how you sell but how much you sell that is now counted.
MBAs , from those tier II business schools ,who inevitably land in such sales jobs find their dreams of a professional marketing career shattered. The high pressure selling, four letter expletives, hire and fire stories, rude clients make their initial corporate years something comparable to hell. It seems to them that they are in a rut from where there is no escape...
Is this the marketing that Kotler speaks about ? When am I going to think about the strategies, 4 P's , branding etc ? How long am I going to wait till I get such a job ?
These are my thoughts about building a career in marketing !
My personal opinion is that it is better to have some hardcore sales experience in sales before thinking about a career in the so called glamorous world of Marketing. Sales will give you lot of inputs about customers, their needs, behaviour, how the channel works etc which will be of tremendous help to you when you enter into the world of marketing strategy. You will be able to device practical marketing strategy since you know how the market works.
Having some sales experience also acts as a career insurance . That experience will help you to be employable even in times of recession. Hence even if you have landed yourself in a sales job you did not like, it is better to stay there for the experience of it ( if all other factors like pay, working environment etc are good ). I have seen many students who initially were skeptical of a sales job later thriving in it. So shed all those inhibitions on being a Salesman. You have nothing to lose except those meaningless calender years.
Having said that, there are marketing jobs that young MBAs can look for which may not have a sales content. Marketing research , Analytics, Creatives, Designers, Retailing , Business Analysts etc are some of those marketing jobs where direct sales component is not present. But these jobs are limited and hard to get.
Also remember that hardcore marketing jobs like Brand Management, product management are often not advertised. Most of these jobs are filled through lateral placements. The point is that these jobs may not come to business school campuses other than the top 10. Hence the task is to network while on the job and find the right contact who can land you that dream job.
My advice to fresh MBAs is not to be heartbroken if you don't land up that marketing job of your dreams. Slog it on sales job , get some experience, network and land your dream job.
Flipkart - From Bookstore to Store
Regular readers of Marketing Practice know that I am not a big fan of Brand Extensions. I always feel uneasy when a brand moves from its defined space to a broader field of play . Flipkart has done just that. From a simple , clutter free online bookstore, the brand has now become an online store selling not only books but mobiles, music videos and gift vouchers.
Reflecting the change in the business strategy, the tagline of Flipkart has also changed from " The bookstore at your door " to " The store at your door ".
Flipkart within a short span of time was able to quickly gain consumer interest because of the simple interface , better pricing and quick service. Customers like me who found other sites like Indiaplaza too cluttered began to look at Flipkart as a serious alternative. In my opinion, Flipkart was a classic example of a brand which offered a simple highly focussed solution for the customer.
Not any more !
Flipkart now is not a bookstore. It is now an online store just like any other online stores. The only differentiating factor is that it retains the simple interface.
The change in the business model of Flipkart will have a serious impact on the brand itself. The brand was built as an online bookstore and now has diluted its core positioning . Now what is the difference between Flipkart, Indiaplaza, Infibeam, tradus and numerous online stores that retails everything from books to innerwears.
While in the books' retailing Flipkart has demonstrated its strength in getting the best price and ensuring fast delivery, will it be able to do that in other categories like mobilephones ? The business logic behind Flipkart to get into other categories is to get more revenue, the question is whether it could demonstrate its success in other categories aswell.
There can be many reasons behind this move :
* Book margins may be underpressure and does not make business sense to concentrate on books alone because of price/margin/competitive pressure.
* Wanted to emulate the business model of Amazon which successfully moved from books to other categories
* Investor pressure to deliver more returns.
* Other categories offered lucrative opportunities.
* Want to cash in the brand equity.
* Founders want to build scale and exit ?
Does it not make sense for Flipkart to concentrate on books alone and become the best/largest/most profitable online bookstore in the country ? I assume that the founders may be under pressure to grow very fast and give more returns to the " angels " who have invested in the venture ( its my assumption !).
I am not going to predict the future of Flipkart as an ordinary store. But in a branding point of view, Flipkart will be diluting its current stature as a highly efficient online bookstore. Thus leaving its exclusive space to potential competitors.
I wish that the brand replicate its success in the current ' diluted ' avatar.
Reflecting the change in the business strategy, the tagline of Flipkart has also changed from " The bookstore at your door " to " The store at your door ".
Flipkart within a short span of time was able to quickly gain consumer interest because of the simple interface , better pricing and quick service. Customers like me who found other sites like Indiaplaza too cluttered began to look at Flipkart as a serious alternative. In my opinion, Flipkart was a classic example of a brand which offered a simple highly focussed solution for the customer.
Not any more !
Flipkart now is not a bookstore. It is now an online store just like any other online stores. The only differentiating factor is that it retains the simple interface.
The change in the business model of Flipkart will have a serious impact on the brand itself. The brand was built as an online bookstore and now has diluted its core positioning . Now what is the difference between Flipkart, Indiaplaza, Infibeam, tradus and numerous online stores that retails everything from books to innerwears.
While in the books' retailing Flipkart has demonstrated its strength in getting the best price and ensuring fast delivery, will it be able to do that in other categories like mobilephones ? The business logic behind Flipkart to get into other categories is to get more revenue, the question is whether it could demonstrate its success in other categories aswell.
There can be many reasons behind this move :
* Book margins may be underpressure and does not make business sense to concentrate on books alone because of price/margin/competitive pressure.
* Wanted to emulate the business model of Amazon which successfully moved from books to other categories
* Investor pressure to deliver more returns.
* Other categories offered lucrative opportunities.
* Want to cash in the brand equity.
* Founders want to build scale and exit ?
Does it not make sense for Flipkart to concentrate on books alone and become the best/largest/most profitable online bookstore in the country ? I assume that the founders may be under pressure to grow very fast and give more returns to the " angels " who have invested in the venture ( its my assumption !).
I am not going to predict the future of Flipkart as an ordinary store. But in a branding point of view, Flipkart will be diluting its current stature as a highly efficient online bookstore. Thus leaving its exclusive space to potential competitors.
I wish that the brand replicate its success in the current ' diluted ' avatar.
The Art of Curation in Three Simple Steps
1. Identify
The first step in content curation is identifying the information that is most relevant and valuable for customers. Research shows that people are more apt to click on a news article they agree with than one they disagree with: 58% of the time vs. 43%. Offering information that the target audience agrees with and is looking for will ensure they become frequent visitors of the company's content channels.
Some key questions to ask yourself when identifying relevant material:
* On what topic do you want to be the go-to authority? Identify a critical and specific topic that your customers what to hear from you about every single day. Make sure that you can be a trusted and unique resource on this topic without having to compete with other online resources.
* Who are the topic sources and influencers on this topic? Identify the key sources and influencers for your topic. You can then follow these outlets for their insights via email, Twitter, news feeds, or otherwise and selectively pick the best content for your curation strategy.
* What can you leave out? The tendency is to want to include too much, which can overwhelm your audience and drown out your own message. As a curator, focus on the 5-10 most relevant articles, posts, and tweets daily.
2. Organize
The next step is to organize the information so that customers can easily consume that content. As you build a rich library of relevant content, the need to organize and structure that content will grow; therefore it's best to organize your content as an integral part of your curation practice.
A few aspects to consider when organizing your curated content:
* How do I segment my content? All your customers may not be interested in all your curated content. If possible, you should categorize your content along the lines of your customer base. For example, if your technology is used both by cardiologists and by ophthalmologists, categorize your content accordingly so that your customers can easily get to the most relevant content quickly and directly.
* Where should I archive this information? If you curate items every day, then in a year you will have several thousand pieces of content. As a curator, you should not lose this rich repository that you have built up. Give that content a home in public form—whether your corporate blog or a dedicated microsite. This repository can enhance your search visibility and your stature as a trusted resource.
3. Share
This is the easiest aspect of the curating role, because the information has already been selected and organized. To share effectively, you will need to think through the following:
* How often should I share? Just as with a good friend, sharing needs to happen regularly. If you do not share content regularly enough, you will not be considered a reliable source for your key topic.
* How should I share? You can share your content through a website or blog, social media channels, or email newsletters. Whatever you decide, consider your audience and how they consume content.
The first step in content curation is identifying the information that is most relevant and valuable for customers. Research shows that people are more apt to click on a news article they agree with than one they disagree with: 58% of the time vs. 43%. Offering information that the target audience agrees with and is looking for will ensure they become frequent visitors of the company's content channels.
Some key questions to ask yourself when identifying relevant material:
* On what topic do you want to be the go-to authority? Identify a critical and specific topic that your customers what to hear from you about every single day. Make sure that you can be a trusted and unique resource on this topic without having to compete with other online resources.
* Who are the topic sources and influencers on this topic? Identify the key sources and influencers for your topic. You can then follow these outlets for their insights via email, Twitter, news feeds, or otherwise and selectively pick the best content for your curation strategy.
* What can you leave out? The tendency is to want to include too much, which can overwhelm your audience and drown out your own message. As a curator, focus on the 5-10 most relevant articles, posts, and tweets daily.
2. Organize
The next step is to organize the information so that customers can easily consume that content. As you build a rich library of relevant content, the need to organize and structure that content will grow; therefore it's best to organize your content as an integral part of your curation practice.
A few aspects to consider when organizing your curated content:
* How do I segment my content? All your customers may not be interested in all your curated content. If possible, you should categorize your content along the lines of your customer base. For example, if your technology is used both by cardiologists and by ophthalmologists, categorize your content accordingly so that your customers can easily get to the most relevant content quickly and directly.
* Where should I archive this information? If you curate items every day, then in a year you will have several thousand pieces of content. As a curator, you should not lose this rich repository that you have built up. Give that content a home in public form—whether your corporate blog or a dedicated microsite. This repository can enhance your search visibility and your stature as a trusted resource.
3. Share
This is the easiest aspect of the curating role, because the information has already been selected and organized. To share effectively, you will need to think through the following:
* How often should I share? Just as with a good friend, sharing needs to happen regularly. If you do not share content regularly enough, you will not be considered a reliable source for your key topic.
* How should I share? You can share your content through a website or blog, social media channels, or email newsletters. Whatever you decide, consider your audience and how they consume content.
Engage Your Customers in Three Simple Steps
Recently, the AP Stylebook updated its guidelines to reflect the evolution of social media: For example, "fan," "friend," and "follow" can all be used both as nouns and as verbs. A decade ago, those words might have sounded completely foreign if used as they are today.
The widespread adoption of the Internet has forever changed the way we communicate as brands, companies, and people. In the age of social media, it's no longer just about communicating; it's also about interacting.
Most marketers are eager to achieve a level of engagement with current and prospective customers, but the majority stop dead in their tracks when they consider this question: Where am I going to find the time to develop all the content necessary to do it?
I am going to let you in on a little secret: Engaging customers online does not have to be difficult. In fact, sharing information with the appropriate group does not need to be daunting or time consuming—if the way information is selected and shared is effective.
The widespread adoption of the Internet has forever changed the way we communicate as brands, companies, and people. In the age of social media, it's no longer just about communicating; it's also about interacting.
Most marketers are eager to achieve a level of engagement with current and prospective customers, but the majority stop dead in their tracks when they consider this question: Where am I going to find the time to develop all the content necessary to do it?
I am going to let you in on a little secret: Engaging customers online does not have to be difficult. In fact, sharing information with the appropriate group does not need to be daunting or time consuming—if the way information is selected and shared is effective.
Thursday, July 8, 2010
Types of marketing research
Marketing research, as a sub-set aspect of marketing activities, can be divided into the following parts:
* Primary research (also known as field research), which involves the conduction and compilation of research for the purpose it was intended.
* Secondary research (also referred to as desk research), is initially conducted for one purpose, but often used to support another purpose or end goal.
By these definitions, an example of primary research would be market research conducted into health foods, which is used solely to ascertain the needs/wants of the target market for health foods. Secondary research, again according to the above definition, would be research pertaining to health foods, but used by a firm wishing to develop an unrelated product.
Primary research is often expensive to prepare, collect and interpret from data to information. Nonetheless, while secondary research is relatively inexpensive, it often can become outdated and outmoded, given it is used for a purpose other than for which is was intended. Primary research can also be broken down into quantitative research and qualitative research, which as the labels suggest, pertain to numerical and non-numerical research methods, techniques. The appropriateness of each mode of research depends on whether data can be quantified (quantitative research), or whether subjective, non-numeric or abstract concepts are required to be studied (qualitative research).
There also exists additional modes of marketing research, which are:
* Exploratory research, pertaining to research that investigates an assumption.
* Descriptive research, which as the label suggests, describes "what is".
* Predictive research, meaning research conducted to predict a future occurrence.
* Conclusive research, for the purpose of deriving a conclusion via a research process.
* Primary research (also known as field research), which involves the conduction and compilation of research for the purpose it was intended.
* Secondary research (also referred to as desk research), is initially conducted for one purpose, but often used to support another purpose or end goal.
By these definitions, an example of primary research would be market research conducted into health foods, which is used solely to ascertain the needs/wants of the target market for health foods. Secondary research, again according to the above definition, would be research pertaining to health foods, but used by a firm wishing to develop an unrelated product.
Primary research is often expensive to prepare, collect and interpret from data to information. Nonetheless, while secondary research is relatively inexpensive, it often can become outdated and outmoded, given it is used for a purpose other than for which is was intended. Primary research can also be broken down into quantitative research and qualitative research, which as the labels suggest, pertain to numerical and non-numerical research methods, techniques. The appropriateness of each mode of research depends on whether data can be quantified (quantitative research), or whether subjective, non-numeric or abstract concepts are required to be studied (qualitative research).
There also exists additional modes of marketing research, which are:
* Exploratory research, pertaining to research that investigates an assumption.
* Descriptive research, which as the label suggests, describes "what is".
* Predictive research, meaning research conducted to predict a future occurrence.
* Conclusive research, for the purpose of deriving a conclusion via a research process.
Market segmentation
Market segmentation pertains to the division of a market of consumers into persons with similar needs and wants. As an example, if using Kellogg's cereals in this instance, Frosties are marketed to children. Crunchy Nut Cornflakes are marketed to adults. Both goods aforementioned denote two products which are marketed to two distinct groups of persons, both with like needs, traits, and wants.
The purpose for market segmentation is conducted for two main issues. First, a segmentation allows a better allocation of a firm's finite resources. A firm only possesses a certain amount of resources. Accordingly, it must make choices (and appreciate the related costs) in servicing specific groups of consumers. Furthermore the diversified tastes of the contemporary Western consumers can be served better. With more diversity in the tastes of modern consumers, firms are taking note of the benefit of servicing a multiplicity of new markets.
Market segmentation can be defined in terms of the STP acronym, meaning Segment, Target and Position.
The purpose for market segmentation is conducted for two main issues. First, a segmentation allows a better allocation of a firm's finite resources. A firm only possesses a certain amount of resources. Accordingly, it must make choices (and appreciate the related costs) in servicing specific groups of consumers. Furthermore the diversified tastes of the contemporary Western consumers can be served better. With more diversity in the tastes of modern consumers, firms are taking note of the benefit of servicing a multiplicity of new markets.
Market segmentation can be defined in terms of the STP acronym, meaning Segment, Target and Position.
Marketing research
Marketing research involves conducting research to support marketing activities, and the statistical interpretation of data into information. This information is then used by managers to plan marketing activities, gauge the nature of a firm's marketing environment and attain information from suppliers. Marketing researchers use statistical methods such as quantitative research, qualitative research, hypothesis tests, Chi-squared tests, linear regression, correlations, frequency distributions, poisson distributions, binomial distributions, etc. to interpret their findings and convert data into information. The marketing research process spans a number of stages including the definition of a problem, development of a research plan, collecting and interpretation of data and disseminating information formally in form of a report. The task of marketing research is to provide management with relevant, accurate, reliable, valid, and current information.
A distinction should be made between marketing research and market research. Market research pertains to research in a given market. As an example, a firm may conduct research in a target market, after selecting a suitable market segment. In contrast, marketing research relates to all research conducted within marketing. Thus, market research is a subset of marketing research.
A distinction should be made between marketing research and market research. Market research pertains to research in a given market. As an example, a firm may conduct research in a target market, after selecting a suitable market segment. In contrast, marketing research relates to all research conducted within marketing. Thus, market research is a subset of marketing research.
Organizational orientation
In this sense, a firm's marketing department is often seen as of prime importance within the functional level of an organization. Information from an organization's marketing department would be used to guide the actions of other departments within the firm. As an example, a marketing department could ascertain (via marketing research) that consumers desired a new type of product, or a new usage for an existing product. With this in mind, the marketing department would inform the R&D department to create a prototype of a product/service based on consumers' new desires.
The production department would then start to manufacture the product, while the marketing department would focus on the promotion, distribution, pricing, etc. of the product. Additionally, a firm's finance department would be consulted, with respect to securing appropriate funding for the development, production and promotion of the product. Inter-departmental conflicts may occur, should a firm adhere to the marketing orientation. Production may oppose the installation, support and servicing of new capital stock, which may be needed to manufacture a new product. Finance may oppose the required capital expenditure, since it could undermine a healthy cash flow for the organization.
The production department would then start to manufacture the product, while the marketing department would focus on the promotion, distribution, pricing, etc. of the product. Additionally, a firm's finance department would be consulted, with respect to securing appropriate funding for the development, production and promotion of the product. Inter-departmental conflicts may occur, should a firm adhere to the marketing orientation. Production may oppose the installation, support and servicing of new capital stock, which may be needed to manufacture a new product. Finance may oppose the required capital expenditure, since it could undermine a healthy cash flow for the organization.
Customer orientation
A firm in the market economy survives by producing goods that persons are willing and able to buy. Consequently, ascertaining consumer demand is vital for a firm's future viability and even existence as a going concern. Many companies today have a customer focus (or market orientation). This implies that the company focuses its activities and products on consumer demands. Generally there are three ways of doing this: the customer-driven approach, the sense of identifying market changes and the product innovation approach.
In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a market offering, including the nature of the product itself, is driven by the needs of potential consumers. The starting point is always the consumer. The rationale for this approach is that there is no point spending R&D funds developing products that people will not buy. History attests to many products that were commercial failures in spite of being technological breakthroughs.
A formal approach to this customer-focused marketing is known as SIVA (Solution, Information, Value, Access). This system is basically the four Ps renamed and reworded to provide a customer focus. The SIVA Model provides a demand/customer centric version alternative to the well-known 4Ps supply side model (product, price, placement, promotion) of marketing management.
Product → Solution
Promotion → Information
Price → Value
Placement → Access
If any of the 4Ps had a problem or were not there in the marketing factor of the business, the business could be in trouble and so other companies may appear in the surroundings of the company, so the consumer demand on its products will become less.
In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a market offering, including the nature of the product itself, is driven by the needs of potential consumers. The starting point is always the consumer. The rationale for this approach is that there is no point spending R&D funds developing products that people will not buy. History attests to many products that were commercial failures in spite of being technological breakthroughs.
A formal approach to this customer-focused marketing is known as SIVA (Solution, Information, Value, Access). This system is basically the four Ps renamed and reworded to provide a customer focus. The SIVA Model provides a demand/customer centric version alternative to the well-known 4Ps supply side model (product, price, placement, promotion) of marketing management.
Product → Solution
Promotion → Information
Price → Value
Placement → Access
If any of the 4Ps had a problem or were not there in the marketing factor of the business, the business could be in trouble and so other companies may appear in the surroundings of the company, so the consumer demand on its products will become less.
Marketing-Further definitions
Marketing is defined by the American Marketing Association (AMA) as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." The term developed from the original meaning which referred literally to going to a market to buy or sell goods or services. Seen from a systems point of view, sales process engineering views marketing as "a set of processes that are interconnected and interdependent with other functions, whose methods can be improved using a variety of relatively new approaches."
The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying, anticipating and satisfying customer requirements profitably." A different concept is the value-based marketing which states the role of marketing to contribute to increasing shareholder value. In this context, marketing is defined as "the management process that seeks to maximise returns to shareholders by developing relationships with valued customers and creating a competitive advantage.
Marketing practice tended to be seen as a creative industry in the past, which included advertising, distribution and selling. However, because the academic study of marketing makes extensive use of social sciences, psychology, sociology, mathematics, economics, anthropology and neuroscience, the profession is now widely recognized as a science, allowing numerous universities to offer Master-of-Science (MSc) programmes. The overall process starts with marketing research and goes through market segmentation, business planning and execution, ending with pre and post-sales promotional activities. It is also related to many of the creative arts. The marketing literature is also adept at re-inventing itself and its vocabulary according to the times and the culture.
The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying, anticipating and satisfying customer requirements profitably." A different concept is the value-based marketing which states the role of marketing to contribute to increasing shareholder value. In this context, marketing is defined as "the management process that seeks to maximise returns to shareholders by developing relationships with valued customers and creating a competitive advantage.
Marketing practice tended to be seen as a creative industry in the past, which included advertising, distribution and selling. However, because the academic study of marketing makes extensive use of social sciences, psychology, sociology, mathematics, economics, anthropology and neuroscience, the profession is now widely recognized as a science, allowing numerous universities to offer Master-of-Science (MSc) programmes. The overall process starts with marketing research and goes through market segmentation, business planning and execution, ending with pre and post-sales promotional activities. It is also related to many of the creative arts. The marketing literature is also adept at re-inventing itself and its vocabulary according to the times and the culture.
Marketing-relationships
Marketing is the process by which companies create customer interest in products or services. It generates the strategy that underlies sales techniques, business communication, and business development. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves.
Marketing is used to identify the customer, to keep the customer, and to satisfy the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries.[citation needed] The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable.
The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.
Marketing is used to identify the customer, to keep the customer, and to satisfy the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries.[citation needed] The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable.
The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.
Nonprofit
Field Guide to Nonprofit Program Design, Marketing and Evaluation
by Carter McNamara, published by Authenticity Consulting, LLC. There are few books, if any, that explain how to carefully plan, organize, develop and market a nonprofit program. Also, too many books completely separate the highly integrated activities of planning, marketing and evaluating programs. This book integrates all three into a comprehensive, straightforward approach that anyone can follow in order to provide high-quality programs with strong appeal to funders. Includes many online forms that can be downloaded. Many materials in this Library topic are adapted from this book.
by Carter McNamara, published by Authenticity Consulting, LLC. There are few books, if any, that explain how to carefully plan, organize, develop and market a nonprofit program. Also, too many books completely separate the highly integrated activities of planning, marketing and evaluating programs. This book integrates all three into a comprehensive, straightforward approach that anyone can follow in order to provide high-quality programs with strong appeal to funders. Includes many online forms that can be downloaded. Many materials in this Library topic are adapted from this book.
Competitive Intelligence
The following books are recommended because of their highly practical nature and often because they include a wide range of information about this Library topic. To get more information about each book, just hover your cursor over the image of the book. A "bubble" of information will be displayed. You can click on the title of the book in that bubble to get more information, too.
Note to nonprofits: Nonprofits "compete" with other nonprofits, too. They compete for funding, attention from their communities and for staff. Also, funders often want to see if their grantees have closely considered whether other nonprofits are already offering the same services in the same areas. So nonprofits should use competitive intelligence, too.
Note to nonprofits: Nonprofits "compete" with other nonprofits, too. They compete for funding, attention from their communities and for staff. Also, funders often want to see if their grantees have closely considered whether other nonprofits are already offering the same services in the same areas. So nonprofits should use competitive intelligence, too.
Sections
Basics and Planning
Basics of Marketing
Market Planning
Inbound Marketing
Marketing Research (tools & methods to examine markets, their needs, competitors, etc.)
Competitive Analysis
Pricing
Positioning (including writing your positioning statement)
Naming and Branding
Outbound Marketing
Advertising and Promotions
Public and Media Relations
Sales
Customer Service
Customer Satisfaction
Social Networking
Protecting Ownership of Your Products/Services
Intellectual Property
Evaluating Your Marketing Efforts
Measuring Results of Advertising
7 Ways to Evaluate Your Marketing Program
Planning and Evaluating Internet Marketing Program
Measuring the Effectiveness of Your Advertising
Basics of Marketing
Market Planning
Inbound Marketing
Marketing Research (tools & methods to examine markets, their needs, competitors, etc.)
Competitive Analysis
Pricing
Positioning (including writing your positioning statement)
Naming and Branding
Outbound Marketing
Advertising and Promotions
Public and Media Relations
Sales
Customer Service
Customer Satisfaction
Social Networking
Protecting Ownership of Your Products/Services
Intellectual Property
Evaluating Your Marketing Efforts
Measuring Results of Advertising
7 Ways to Evaluate Your Marketing Program
Planning and Evaluating Internet Marketing Program
Measuring the Effectiveness of Your Advertising
Inbound Marketing
1. What specific groups of potential customers/clients (markets) might have which specific needs (nonprofits often already have a very clear community need in mind when starting out with a new program -- however, the emerging practice of nonprofit business development, or earned income development, often starts by researching a broad group of clients to identify new opportunities for programs)
2. How those needs might be met for each group (or target market), which suggests how a product might be designed to meet the need (nonprofits might think in terms of outcomes, or changes, to accomplish among the groups of clients in order to meet the needs)
3. How each of the target markets might choose to access the product, etc. (its "packaging")
4. How much the customers/clients might be willing pay and how (pricing analysis)
5. Who the competitors are (competitor analysis)
6. How to design and describe the product such that customers/clients will buy from the organization, rather than from its competitors (its unique value proposition)
7. How the product should be identified -- its personality -- to be most identifiable (its naming and branding)
2. How those needs might be met for each group (or target market), which suggests how a product might be designed to meet the need (nonprofits might think in terms of outcomes, or changes, to accomplish among the groups of clients in order to meet the needs)
3. How each of the target markets might choose to access the product, etc. (its "packaging")
4. How much the customers/clients might be willing pay and how (pricing analysis)
5. Who the competitors are (competitor analysis)
6. How to design and describe the product such that customers/clients will buy from the organization, rather than from its competitors (its unique value proposition)
7. How the product should be identified -- its personality -- to be most identifiable (its naming and branding)
Outbound Marketing
1. Advertising and promotions (focused on the product)
2. Sales
3. Public and media relations (focused on the entire organization)
4. Customer service
5. Customer satisfaction
Too often, people jump right to the outbound marketing. As a result, they often end up trying to push products onto people who really don't want the products at all. Effective inbound marketing often results in much more effective -- and less difficult -- outbound marketing and sales.
2. Sales
3. Public and media relations (focused on the entire organization)
4. Customer service
5. Customer satisfaction
Too often, people jump right to the outbound marketing. As a result, they often end up trying to push products onto people who really don't want the products at all. Effective inbound marketing often results in much more effective -- and less difficult -- outbound marketing and sales.
"Marketing" -- A Commonly Misunderstood Term
Before you learn more about marketing, you should get a basic impression of what marketing is. See What's "Advertising, Marketing, Promotion, Public Relations and Publicity, and Sales?". Basically, you might look at marketing as the wide range of activities involved in making sure that you're continuing to meet the needs of your customers and are getting appropriate value in return. Think about marketing as "inbound" and "outbound" marketing. (In the following, consider "product" to be either a tangible product or a service -- nonprofits often refer to these as "programs".)
Branding
In a discussion with a colleague we began to talk about the importance of the way a company treats their employees and how it affects how they then treat the company's clients. He has seen the truth of this principle in the company that he works for and today that company is experiencing ultimate success.
This conversation reminded me of an article I wrote during an epiphany moment called Internal Branding. Truth is marketing starts from the inside out. It' important to realize that if you try to start on the outside first your endeavor will fail. Branding is not only skin deep it starts with your employees. If they are not reflecting your brand this could be diminishing your marketing efforts. It's important to get your employees involved and behind your brand.
This conversation reminded me of an article I wrote during an epiphany moment called Internal Branding. Truth is marketing starts from the inside out. It' important to realize that if you try to start on the outside first your endeavor will fail. Branding is not only skin deep it starts with your employees. If they are not reflecting your brand this could be diminishing your marketing efforts. It's important to get your employees involved and behind your brand.
Social Media Policy
I'm going to ask that you allow me to step up on my soapbox for a minute this week. When I hear of companies that have suffered from brand sabotage at the hand of an employee or employees it infuriates me. I suppose it's because I've been an entrepreneur most of my career and in that career I have worked hard to help companies establish and build their brands. It's a bit hard to swallow when an employee's video posted on YouTube has the ability to shake a 50 year old brand like Dominos.
The great thing about social media is its transparency and that transparency works well when marketing your brand. Transparency is what consumers crave. They want to like you before buying from you. It's about connection and engagement. The bad thing about social media is that same transparency. Social media transparency has the ability to throw your company in crisis and recovery mode because of an employee's actions.
In today's world of social media It only takes a YouTube video, a Facebook status update, or a misguided Tweet to throw a company into crisis mode. This truth has created fear in the core of companies. They are afraid to delve into social media marketing because what if an employee says the wrong thing or a customer complains? Their biggest fear is that of their own employees. They cringe at the thought of what their employees are posting on Facebook or what photos they are posting on Myspace. Why do you think most human resource departments Google candidates before calling them in for an interview or handing them an official job offer?
You can't stop individuals from participating in social media and truth is you don't want to. Social media is a viable marketing tool that is growing daily. The more you participate the more you can be aware of what's being said about your brand. However, with that being said it's also important to create guidelines and a code of ethics for your employees to follow. They are your brand ambassadors everyday 24/7. Do they understand that? They need to and hopefully they have just as much passion for your brand as you do. A social media policy will help them understand what's expected of them and what you tolerate or don't tolerate in the social media realm.
A good social media policy will be a win-win for both you and your employees. You will know that you are successful in creating your policy if the final draft allows employees the opportunity to be themselves online, but yet at the same time protects your brand.
Do yourself a favor and don't put off creating a social media policy even though it's daunting, you don't want your brand to be the victim of the next public relations disaster. Social media disasters caused by networking sites and employees of companies is happening too often. Learn how to create a social media policy that will protect your company's brand and offer guidelines to your employees.
The great thing about social media is its transparency and that transparency works well when marketing your brand. Transparency is what consumers crave. They want to like you before buying from you. It's about connection and engagement. The bad thing about social media is that same transparency. Social media transparency has the ability to throw your company in crisis and recovery mode because of an employee's actions.
In today's world of social media It only takes a YouTube video, a Facebook status update, or a misguided Tweet to throw a company into crisis mode. This truth has created fear in the core of companies. They are afraid to delve into social media marketing because what if an employee says the wrong thing or a customer complains? Their biggest fear is that of their own employees. They cringe at the thought of what their employees are posting on Facebook or what photos they are posting on Myspace. Why do you think most human resource departments Google candidates before calling them in for an interview or handing them an official job offer?
You can't stop individuals from participating in social media and truth is you don't want to. Social media is a viable marketing tool that is growing daily. The more you participate the more you can be aware of what's being said about your brand. However, with that being said it's also important to create guidelines and a code of ethics for your employees to follow. They are your brand ambassadors everyday 24/7. Do they understand that? They need to and hopefully they have just as much passion for your brand as you do. A social media policy will help them understand what's expected of them and what you tolerate or don't tolerate in the social media realm.
A good social media policy will be a win-win for both you and your employees. You will know that you are successful in creating your policy if the final draft allows employees the opportunity to be themselves online, but yet at the same time protects your brand.
Do yourself a favor and don't put off creating a social media policy even though it's daunting, you don't want your brand to be the victim of the next public relations disaster. Social media disasters caused by networking sites and employees of companies is happening too often. Learn how to create a social media policy that will protect your company's brand and offer guidelines to your employees.
Integrated Marketing
I love when we coin phrases and they become the buzz, but when it really comes down to it a lot of people don't know what's meant by the said phrase. I'm going to pick on one of those phrases today and it's Integrated Marketing.
Our marketing world is shifting that is no secret. Everywhere we look we see something about integrated marketing, but I still see companies that don't embrace that approach. Integrated marketing is the holistic approach to communication in marketing. It's making sure that you are being consistent in your marketing both online and offline. In other words - well it's important.
A few years ago there was a marketing campaign that was launched in my area and I was always amazed that they did not use an integrated approach to gain more bang for their buck. I often use it as an example of how integrated marketing could of worked and creating a user experience that perhaps would have increased the companies overall investment.
Our marketing world is shifting that is no secret. Everywhere we look we see something about integrated marketing, but I still see companies that don't embrace that approach. Integrated marketing is the holistic approach to communication in marketing. It's making sure that you are being consistent in your marketing both online and offline. In other words - well it's important.
A few years ago there was a marketing campaign that was launched in my area and I was always amazed that they did not use an integrated approach to gain more bang for their buck. I often use it as an example of how integrated marketing could of worked and creating a user experience that perhaps would have increased the companies overall investment.
Is everything marketing?
The other day I was having a conversation and someone made the remark that “Some people think everything is marketing!” This, as usual, got my brain thinking…..is everything marketing?
Backing up, you have to have a clear understanding of what marketing is and what marketing is not to make such a judgment. The American Marketing Association defines marketing as:
“Marketing is an organizational function and a set of process for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.”
Now, let’s say you get that definition…and lets even go as far to say that you have some marketing experience and academic marketing background…is everything marketing?
What if you have none of these…what’s your perspective? What’s your view on marketing then and – is everything marketing?
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Is everything marketing?
The other day I was having a conversation and someone made the remark that “Some people think everything is marketing!” This, as usual, got my brain thinking…..is everything marketing?
Backing up, you have to have a clear understanding of what marketing is and what marketing is not to make such a judgment. The American Marketing Association defines marketing as:
“Marketing is an organizational function and a set of process for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.”
Now, let’s say you get that definition…and lets even go as far to say that you have some marketing experience and academic marketing background…is everything marketing?
What if you have none of these…what’s your perspective? What’s your view on marketing then and – is everything marketing?
I ask this question because of one observation I made the other day getting off the metro…
A homeless man stood need the escalator and asked for a quarter. Walking further along, I saw a homeless man sitting, with his cup on the sidewalk as he read a book. And it occurred to me, that the man by the escalator who asked for a quarter is smart – in a marketing way. But, I don’t think many people other metro goers would pick up on this…but this is why I found this man marketing-smart:
1. Place: He picked a prime location, where people are coming and going, so there is higher traffic and a greater chance that someone would give money
2. Price: He asked for a specific amount. If someone asks for money, nothing new. But, this was the first time I had heard a man ask for a specific amount, and I wondered if this saw a better return, a strategy so to speak that he had learned from experience.
So, I ask you…is this marketing? I would say yes. Is everything marketing?
From my perspective, because I’m so entrenched in my marketing world, I might say yes (though realistically and in academia, it is a big, no.) But, I would say that everything might be considered…strategic communication. My undergrad major is strategic communications. I think this might be a better way to approach the question…is everything marketing? No, but everything involves strategy.
This question is similar to other statements like…everyone is selling something or everything comes down to sales. I bet some of our corporate friends and corporate agencies would sure feel like its that way! In regards to how the infamous ‘Double-Ds,’ data and dollars, seem to drive many organizations.
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