Marketing Management

MARKETING MANAGEMENT

It is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

What is marketed?

Goods, Services, Events, Experiences, Persons, Places, Properties and Organizations, Information Ideas

How business and marketing are changing:

So many developments have created new behaviors, new opportunities, and new challenges:

They include:

Changing technology:

The business environment has moved from mass production, mass consumption to more accurate levels of production, more targeted communications, and more relevant pricing. Business is conducted over the net.

Globalization:

Technological advances in transportation, shipping, and communication have made it easier for companies to market in other countries and easier for consumers to buy products and services from marketers in other countries.

Deregulation

Many countries have liberalized their economies to create greater competition and growth opportunities.

Privatization

Many organizations have converted public companies to private ownership and management to increase their efficiency.

Customer empowerment

Customers are demanding more quality service and some customization. They want more convenience. They easily obtain product information from the internet ad other sources which permits them to shop more intelligently. They show greater sensitivity in their search for value.

Customization

Customers can make orders online and in a way design their products. Companies can provide customized services.

Heightened competition

This increases the costs of doing business and reduces profit margins.

Industry convergence

Companies are recognizing that new opportunities lie at the intersection of two or more industries e.g. chemists stocking beauty products.

 

MARKETING PHILOSOPHIES/Marketing Orientations

The competing concepts under which organizations have conducted their marketing activities include:

The production concept

This is the oldest concept. It holds that consumers prefer products that are widely available and inexpensive. Managers of production oriented businesses concentrate on achieving high production efficiency through low costs, and mass distribution. It is used when the firms want to expand the market.

The product concept

It holds that consumers will favor those products that offer the most quality, performance, or innovative features.

 

The selling concept

It holds that consumers, if left alone will ordinarily buy enough of the organizations products. It must undertake aggressive selling and promotion effort. It aims at selling more stuff to more people more often for more money in order to make more profit. They sell what they make rather than what the customer wants. The concept is practiced most aggressively with goods that buyers normally do not think of buying, e.g. insurance, -3%-encyclopedias etc. Other forms practice the concept when they have overcapacity.

The marketing concept

They make the right products for the customers. The organization must be more effective than competitors in creating, delivering, and communicating superior customer value to its chosen target markets. It leads to superior performance.  A company faces three hurdles in the course of converting to a marketing orientation, organized resistance; slow learning and fast forgetting

The holistic marketing concept-Sustainability.

This concept stresses not only the customer satisfaction but also gives importance to Consumer Welfare/Societal Welfare. This concept is almost a step further than the marketing concept. Under this concept, it is believed that mere satisfaction of the consumers would not help and the welfare of the whole society has to be kept in mind.

For example, if a company produces a vehicle which consumes less petrol but spreads pollution, it will result in only consumer satisfaction and not the social welfare.

 

 

 

 

 

 

 

The Marketing Process

Marketing proceeds the following steps

  1. Situation Analysis

A thorough analysis of the situation in which the firm finds itself serves as the basis for identifying opportunities to satisfy unfulfilled customer needs. In addition to identifying the customer needs, the firm must understand its’ own capabilities and the environment in which it is operating.

The situation analysis thus can be viewed in terms an analysis of the external environment and an internal analysis of the firm itself. The external environment can be described in terms of macro-environmental factors that broadly affect many firms, and micro-environmental factors closely related to the specific situation of the firm.

There are several frameworks that can be used to add structure to the situation analysis:

  • 5 C Analysis – company, customers, competitors, collaborators, climate. Company represents the internal situation; the other four cover aspects of the external situation
  • PEST analysis – for macro-environmental political, economic, societal, and technological factors. A PEST analysis can be used as the “climate” portion of the 5 C framework.
  • SWOT analysis – strengths, weaknesses, opportunities, and threats – for the internal and external situation. A SWOT analysis can be used to condense
  1. Marketing Strategy

Once the best opportunity to satisfy unfulfilled customer needs is identified, a strategic plan for pursuing the opportunity can be developed. Market research will provide specific market information that will permit the firm to select the target market segment and optimally position the offering within that segment. The result is a value proposition to the target market. The marketing strategy then involves:

  • Segmentation
  • Targeting (target market selection)
  • Positioning the product within the target market
  • Value proposition to the target market

III. Marketing Mix Decisions

Detailed tactical decisions then are made for the controllable parameters of the marketing mix. The action items include:

  • Product development – specifying, designing, and producing the first units of the product.
  • Pricing decisions
  • Distribution contracts
  • Promotional campaign development
  1. Implementation and Control

At this point in the process, the marketing plan has been developed and the product has been launched. Given that few environments are static, the results of the marketing effort should be monitored closely. As the market changes, the marketing mix can be adjusted to accommodate the changes. Often, small changes in consumer wants can be addressed changing the advertising message. As the changes become more significant, a product redesign or an entirely new product may be needed. The marketing process does not end with implementation – continual monitoring and adaptation is needed to fulfill customer needs consistently over the long-term.

Importance of Marketing Management

  1. It helps to plan and develop the product in the basis of known customer demand
  2. It builds up appropriate marketing plans to fulfill the set goals of the business
  • It formulates sound marketing policies and programs.
  1. Marketing Management organizes, directs and controls all marketing activities included in the process of marketing of goods or services.
  2. It implements the marketing programs and conducts the marketing campaign
  3. It evaluates the effectiveness of each part of the marketing mix i.e. the product, price, distribution and promotion and introduces necessary alterations or modifications to remove discrepancies and deficiencies discovered in implementation.

Objectives of Marketing Management

  1. To increase sales volumes
  2. To increase net profits
  • To achieve stability with growth and profitability

Responsibilities/Functions of a Marketing Manager

  1. Market analysis
  2. To determine market goals
  • Organize marketing activities
  1. Assembling
  2. Product Management
  3. Controlling Market Activities

 

MARKETING RESEARCH AND INTELLIGENCE

This is the collection and interpretation of facts that help Marketing Managers put the product more efficiently into the hands of the customers.  It is the systematic, evaluative and exhaustive search for and study of the facts relevant to any problem in the field of marketing. The functions of marketing research are:-

  1. It defines the problem
  2. It secures general and specific market information
  • It analyses and interprets market information
  1. It draws definite logical conclusions
  2. It engages the services of a Marketing research specialist.

Specific Aims and Objectives of Marketing Research

  1. It defines probable markets in the terms of the general market conditions, tendencies, buying habits etc.
  2. It assesses Competitive strengths and policies
  • It estimates potential buying power in various areas
  1. It identifies and evaluates distribution channels best suited for the products in the market.
  2. It estimates the company’s expected share of the market.
  3. It assesses the probable volume of future sales
  • It studies the geographical distribution of the market
  • It evaluates consumer acceptance of the product
  1. Studies the requirements regarding the features of the product.
  2. It determines the dimension of the marketing problems
  3. It facilitates the evaluation of alternative solutions to different problems
  • It helps in the selection of the right course of action.

Importance of Marketing Research

Planned production.

It assists in formulating accurate and realistic plans programs of marketing, advertising and sales promotion based on realistic information of customer’s demands, their changing tastes and preferences.  This will assist in planning production.

Knowledge of Market Change.

It helps anticipate, meet and adopt conditions of change particularly in consumer demands

First- hand Marketing Information.

The increasing number of middlemen has created a serious gap between manufacturers and customers.  Marketing research fills up the communication gap between the consumer and the producer.  Information is provided about consumers, markets and changes in the pattern of demand.

Increasing Competition

Marketing Research ensures maximum consumer satisfaction, repeat purchases and assists in laying down appropriate marketing strategies to meet competition, to survive and grow in a competitive market.  It establishes a positive correlation between the product brand and consumer’s needs and preferences.

Improvements in the product line

Marketing Research enables the organisation to catch up with new developments brought about unprecedented growth of science and technology that prompts adjustments and innovations in product design, packaging, advertising, sales promotion, and distribution policies so that the business can keep itself up to date in a dynamic market environment.

The procedure for conducting Marketing Research

  • Identification of the problem and defining the objective of the research.
  • Determining the sources of information
  • Preparing data collection forms
  • Designing the sample
  • Collecting information in the field
  • Analysis of the data collected
  • Recommending a course of action.

 

 

Methods of Marketing Research

  1. Desk Research – It is done with the help of published and other written sources of information
  2. Field Investigation which includes:-Mail order surveys, telephone surveys and Personal interviews etc.
  3. The observation method, which involves noting and recognizing responses in the actions and behaviour.
  4. Experimental methods: They involve small-scale experiments under carefully controlled conditions.  It is intended to evaluate the effect of some variable or proposed course of action

The choice of a suitable method of marketing research depends on:

  • The degree of reliability: Field research is more reliable than desk research.
  • The nature of research: a specific area is easier than research in a wide area.
  • The nature of industry: Research in producer goods is easier than in consumer goods where a large area must be covered.
  • The organisation: Research department will go for field research otherwise consultants will be hired.
  • The analytical machinery-Where it is absent, desk research is prepared or other agencies are relied on.
  • Time available: Desk research takes less time than field research.
  • The Approach: Field research involves a personal approach while desk research is impersonal.
  • The Cost: Desk Research is less expensive than field research.

  Characteristics of a good marketing research

  • Scientific method
  • Research creativity
  • Multiple methods
  • Interdependence of models and data value and cost information
  • Healthy criticism to assumptions and alertness to problems caused.
  • Ethical marketing – misuse of marketing research can harm or annoy customers e.g. invade privacy

Reasons for failure of marketing research

  • A narrow conception of research e.g. no problem definition or decisions facing management
  • Incompetent marketing researchers – not motivated
  • Poor framing of the problem
  • Late and erroneous findings
  • Personality and presentational differences – abstractness, complications and tentativeness should be avoided

 

MARKETING INFORMATION SYSTEMS

Marketing information consists of facts, figures, reports, prices, market conditions, consumer responses, customers’ needs and desires, market competition, advertising developments, selling methods, information on the physical flow of goods, transportation, warehousing, inventory position etc.  Some companies maintain a great deal of data on: -Competitors, Strategy, Customer profiles, Advertising effectiveness

 

Information needs of different levels of marketing executives:

Lower Level Managers. These are interested in operational information e.g. detailed reports generally control oriented for taking operational decisions.

Middle Level Managers. Are interested in tactical information e.g. comprehensive reports that are planning or control oriented for taking tactical marketing decisions

Top Managers want strategic information e.g. overall reports that are planning oriented for taking strategic decisions.

All these decisions must be made with full awareness of market conditions, competition, and above all adequate knowledge of market demand.

Importance of a marketing information system

  1. The anticipation of consumer demand.

It provides information consumer needs, the nature, character and size of this demand.

  1. Complexity in marketing

Ever expanding markets and multinational marketing activities require adequate market intelligence.

  1. 3. The significance of economic indicators

The forces of demand and supply are constantly changing and they determine prices and general market conditions. The system provides information under changing trends of supply, demand and price.

  1. The significance of competition

In order to make decisions, a marketer must predict and know existing strategies of competitors. The size, nature and size of competition is very important.

  1. The development of science and technology

The market is the mother of all inventions. The marketer must be innovative. New products, new markets, new processes, new techniques are based on facts and figures.

  1. Consumerism

Increasing consumer grievances will indicate that products do not meet consumer requirements and marketers do not have up to date knowledge of real and precise consumer demand.

  1. Marketing planning

Plans and programs are based upon information supplied economic and marketing research which provides information about the future economic and marketing conditions, e.g. the sales forecasts is the basis of the production plan, the financial plan and other budgets.

  1. Information explosion

Computers provide a fantastic flow of information which must be used.

Steps taken to improve the quality of marketing intelligence

  • Train and motivate the sales force to spot and report new developments – they should collect information and know which types of information to send to which manger.
  • Motivate distributors, retailers and other intermediaries to pass along important intelligence
  • A company can network externally e.g., purchasing competitors products; attend open houses and open shows; read competitors published reports; attend stakeholders meetings; talk to employees, dealers, distributors, suppliers and freight agents; collect competitors adverts; look up news stories etc;
  • A company can set up a customer advisory panel whose members would include representative customers; the companies largest customers, outspoken and sophisticated customers etc.
  • A company can also take advantage of government data sources – economic reports; surveys etc
  • A company can purchase information from outside sources e.g. research firms
  • A company can use online customer feedback systems to collect valuable information.

The Marketing Mix
(The 4 P’s of Marketing)

The marketing mix refers to the tactics (or marketing activities) that we have to satisfy customer needs and position our offering clearly in the mind of the customer. It involves the 7Ps; Product, Price, Place and Promotion (McCarthy, 1960) and an additional three elements that help us meet the challenges of marketing services, People, Process and Physical Evidence (Booms & Bitner,

Marketing decisions therefore generally fall into the following Seven controllable categories:

  • Product
  • Price
  • Place (distribution)
  • Promotion
  • People
  • Process
  • Physical evidence.

1.The product.

What is a product?A product is bundle physical attributes or symbolical particulars expected to yield satisfaction or benefits to the buyer.

New product development

A product may be developed the following three methods

  1. Imitation:
    This involves copying the other popular or best-selling products already existing in the market.
  2. Adaptation/Improvement:
    This is a modification and improvement in the existing quality, size, form or design of the existing product so that it may look almost like a new product. Improvements could be in quality, features, style, packaging etc.
  3. Product innovation:
    This is the introduction of an altogether new product which is based on research and which has been unknown so far.


Considerations in product development

  1. Consumer’s acceptance, in terms of attractiveness, convenience of purchase and consumption, pricing, etc.
  2. Patent and trademark protection.
  3. Developing and manufacturing costs. This will determine feasibility.
  4. Complementary products, especially their supply and price position.
  5. The by-products, which could be the main source of profits.
  6. Impact on existing products.
  7. Ultimate replacement of already existing products

Advantages of product development

  1. It helps in exploiting market changes
  2. We have industrial stability. A firm will not face obsolescence or closure of units
  3. Diversification of risks. Offsets losses from obsolete products
  4. Normal basic materials can be used as waste or scrap
  5. New products even out sales fluctuations resulting from seasonal or cyclical factors
  6. Profitability is increased.

The scientific process of developing a new product

  1. Exploration:

The ideas for the product are sought through

  1. Consumer requests
  2. Letters to producers
  3. Competitive products
  4. Market research
  5. Plant capacities
  6. Government regulations, etc
  1. Screening:
    A preliminary evaluation is done to determine whether the idea has possibilities and should be further developed or dropped.
  2. Specification:
    The idea is expanded to a realistic recommendation. Further research is carried out on the features and the competitor’s probable actions.
  3. Development:
    Prototypes are built to be shown and disseminated.
  4. Testing:
    The judgments about feasibility are proved or disapproved. Samples are market tested and user reactions analyzed. The exact specification is then chosen.
  5. Commercialization:
    This step involves full-scale production and extensive advertising and selling.

Factors responsible for the failure of a new product

  1. Insufficient market analysis
  2. Inherent product limitation of lower quality, lack of proper design, unattractive packaging, etc.
  3. Higher costs of estimation than was expected
  4. Severe competition in the market
  5. Lack of enthusiasm on the part of the salesmen
  6. Defective distribution policy
  7. Wrong time product introduction in the markets

(Please note: Reverse the preceding factors to get the recipe for successful product development.)

The Product Life Cycle

A product’s life cycle (PLC) can be divided into several stages characterized the revenue generated the product as follows:

Product Life Cycle Curve

 

Introduction Stage

When the product is introduced, sales will be low until customers become aware of the product and its benefits. Some firms may announce their product before it is introduced, but such announcements also alert competitors and remove the element of surprise. Advertising costs typically are high during this stage in order to rapidly increase customer awareness of the product and to target the early adopters.

Growth Stage

The growth stage is a period of rapid revenue growth. Sales increase as more customers become aware of the product and its benefits and additional market segments are targeted. Once the product has been proven a success and customers begin asking for it, sales will increase further as more retailers become interested in carrying it. The marketing team may expand the distribution at this point. When competitors enter the market, often during the later part of the growth stage, there may be price competition and/or increased promotional costs in order to convince consumers that the firm’s product is better than that of the competition.

During the growth stage, the goal is to gain consumer preference and increase sales.

Maturity Stage

The maturity stage is the most profitable. While sales continue to increase into this stage, they do so at a slower pace. Because brand awareness is strong, advertising expenditures will be reduced. Competition may result in decreased market share and/or prices. The competing products may be very similar at this point, increasing the difficulty of differentiating the product. The firm places effort into encouraging competitors’ customers to switch, increasing usage per customer, and converting non-users into customers. Sales promotions may be offered to encourage retailers to give the product more shelf space over competing products.

During the maturity stage, the primary goal is to maintain market share and extend the product life cycle.

Decline Stage

Eventually sales begin to decline as the market becomes saturated, the product becomes technologically obsolete, or customer tastes change. If the product has developed brand loyalty, the profitability may be maintained longer. Unit costs may increase with the declining production volumes and eventually no more profit can be made.

During the decline phase, the firm generally has three options:

  • Maintain the product in hopes that competitors will exit. Reduce costs and find new uses for the product.
  • Harvest it, reducing marketing support and coasting along until no more profit can be made.
  • Discontinue the product when no more profit can be made or there is a successor product.

2.Price

One of the four major elements of the marketing mix is price. Pricing is an important strategic issue because it is related to product positioning. Furthermore, pricing affects other marketing mix elements such as product features, channel decisions, and promotion. While there is no single recipe to determine pricing, the following is a general sequence of steps that might be followed for developing the pricing of a new product:

  1. Develop marketing strategy – perform marketing analysis, segmentation, targeting, and positioning.
  2. Make marketing mix decisions – define the product, distribution, and promotional tactics.
  3. Estimate the demand curve – understand how quantity demanded varies with price.
  4. Calculate cost – include fixed and variable costs associated with the product.
  5. Understand environmental factors – evaluate likely competitor actions, understand legal constraints, etc.
  6. Set pricing objectives – for example, profit maximization, revenue maximization, or price stabilization (status quo).
  7. Determine pricing – using information collected in the above steps, select a pricing method, develop the pricing structure, and define discounts.

These steps are interrelated and are not necessarily performed in the above order. Nonetheless, the above list serves to present a starting framework.

Pricing Objectives

The firm’s pricing objectives must be identified in order to determine the optimal pricing. Common objectives include the following:

  • Current profit maximization – seeks to maximize current profit, taking into account revenue and costs. Current profit maximization may not be the best objective if it results in lower long-term profits.
  • Current revenue maximization – seeks to maximize current revenue with no regard to profit margins. The underlying objective often is to maximize long-term profits increasing market share and lowering costs.
  • Maximize quantity – seeks to maximize the number of units sold or the number of customers served in order to decrease long-term costs as predicted the experience curve.
  • Maximize profit margin – attempts to maximize the unit profit margin, recognizing that quantities will be low.
  • Quality leadership – use price to signal high quality in an attempt to position the product as the quality leader.
  • Partial cost recovery – an organization that has other revenue sources may seek only partial cost recovery.
  • Survival – in situations such as market decline and overcapacity, the goal may be to select a price that will cover costs and permit the firm to remain in the market. In this case, survival may take a priority over profits, so this objective is considered temporary.
  • Status quo – the firm may seek price stabilization in order to avoid price wars and maintain a moderate but stable level of profit.

Pricing Methods

To set the specific price level that achieves their pricing objectives, managers may make use of several pricing methods. These methods include:

  • Cost-plus pricing – set the price at the production cost plus a certain profit margin.
  • Target return pricing – set the price to achieve a target return-on-investment.
  • Value-based pricing – base the price on the effective value to the customer relative to alternative products.
  • Psychological pricing – base the price on factors such as signals of product quality, popular price points, and what the consumer perceives to be fair.

 

Price Discounts

The normally quoted price to end users is known as the list price. This price usually is discounted for distribution channel members and some end users. There are several types of discounts, as outlined below.

  • Quantity discount – offered to customers who purchase in large quantities.
  • Cumulative quantity discount – a discount that increases as the cumulative quantity increases. Cumulative discounts may be offered to resellers who purchase large quantities over time but who do not wish to place large individual orders.
  • Seasonal discount – based on the time that the purchase is made and designed to reduce seasonal variation in sales. For example, the travel industry offers much lower off-season rates. Such discounts do not have to be based on time of the year; they also can be based on day of the week or time of the day, such as pricing offered long distance and wireless service providers.
  • Cash discount – extended to customers who pay their bill before a specified date.
  • Trade discount – a functional discount offered to channel members for performing their roles. For example, a trade discount may be offered to a small retailer who may not purchase in quantity but nonetheless performs the important retail function.
  • Promotional discount – a short-term discounted price offered to stimulate sales.

PRICING STRATEGIES

Pricing strategies for new products

Skimming pricing

This involves setting a relatively high price during the initial stage of a product’s life.Objectives:-

  • To serve customers who are not price conscious while the market is at the upper end of the demand curve and competition has not yet entered the market.
  • To recover a significant portion of promotional and research and development costs through a high margin.

Penetration pricing

This involves selecting a relatively low price during the initial stages of a products life.

Objective

To discourage competition from entering the market quickly taking a large market share and gaining a cost advantage through realizing economies of scale

PRICING STRTEGIES FOR ESTABLISHED PRODUCTS

Maintaining the price

Objectives

  • To maintain position in the market place (i.e. market share, profitability, etc.)
  • To enhance public image

Reducing the price

Objectives

  • To act defensively and cut price to meet the competition
  • To act offensively and attempt to beat competition
  • To respond to a customer need created a change in the environment

Increasing the price

Objectives

  • To maintain profitability during an inflationary period
  • To take advantage of product differences, real or perceived.
  • To segment the current served market

3.Place (distribution)

Producers can sell their products directly to consumers through retail outlets or through distributors or through distributors plus wholesalers. The channel of distribution therefore is the process through which the goods or products are transferred from the producer to the ultimate user.

Factors determining the choice of a suitable channel of distribution

Product considerations

  1. Unit value:
    A low value permits use of a long channel. A high value permits short and direct channel
  2. Perishability:
    perishable goods should use a short channel
    durable goods should use a long channel
  3. Technical nature
    high technology products tend to use a short channel
    low technology goods should use a long channel
  4. Bulk and weight
    heavy and bulky goods should use a short channel
    light goods can easily use a long channel
  5. After-sales service
    Where needed a short channel should be used
  6. The extent of the product line and alternative goods.

Many alternatives adopt popular channels. Limited product lines prefer a direct link.

  1. Ordered/standardized products
    Where products are highly standardized there’s use of long and complex channels.

Where there are ordered goods, they should be supplied directly to the buyer.

4.Promotion.

Promotion in our marketing mix is about communicating messages to customers, whichever stage they are in the buyer journey, to generate awareness, interest, desire or action.

It consists of six major models of communication:

  • Advertising – any paid form of non personal presentation and promotion of ideas, goods or services an identified sponsor.
  • Sales promotion: – A variety of short term incentives to encourage trial or purchase of a product or service.
  • Events and experiences: – company sponsored activities and programs designed to create daily or special brand related interactions.
  • Public represents and publicity – a variety of groups designed to practice or protects a company’s image or its individual products.
  • Direct marketing:-Use of mail, telephone, fax e-mail or internet to communicate direct, with or solicit response or dialogue form specific customers or prospects.
  • Personal selling: – Face to face interaction with one or more prospective purchases for the purpose of making presentations, answering questions and providing orders.

5.People

A company’s people are at the forefront when interacting with customers, taking and processing their enquiries, orders and complaints in person, through online chat, on social media, or via the call centre.

They interact with customers throughout their journey and become the ‘face’ of the organisation for the customer. Their knowledge of the company’s products and services and how to use them, their ability to access relevant information and their everyday approach and attitude needs to be optimised. People can be inconsistent but with the right training, empowerment and motivation a company, they can also represent an opportunity to differentiate an offering in a crowded market and to build valuable relationships with customers.

6.Process

All companies want to create a smooth, efficient and customer-friendly journey – and this can’t be achieved without the right processes behind the scenes to make that happen. Understanding the steps of the customer journey – from making an enquiry online to requesting information and making a purchase – helps us to consider what processes need to be in place to ensure the customer has a positive experience.

When a customer makes an enquiry, how long will they have to wait before receiving a response? How long do they wait between booking a meeting with the sales team to the meeting taking place? What happens once they make an order? How do we make sure reviews are generated after a purchase? How can we use technology to make our processes more efficient? All of these considerations help build a positive customer experience

  1. Physical Evidence.

Physical evidence provides tangible cues of the quality of experience that a company is offering. It can be particularly useful when a customer has not bought from the organization before and needs some reassurance or is expected to pay for a service before it is delivered.

For a restaurant, physical evidence could be in the form of the surroundings, staff uniform, menus and online reviews to indicate the experience that could be expected.

For an agency, the website itself holds valuable physical evidence – from testimonials to case studies, as well as the contracts that companies are given to represent the services they can expect to be delivered.

 

STUDENTS TASK:

Read on E-commerce.

Marketing strategies.

A marketing strategy is a course of action used to promote and sell a company’s products or services. Businesses create these plans for reaching consumers and showcasing their product’s advantages. Understanding the needs and wants of consumers empowers a forward-thinking marketing strategy able to achieve sustainable advantage and guide a business in the direction its marketing efforts should take.

Examples of Marketing strategies.

  1. Business to business

Business-to-business (B2B) marketing allows businesses to sell to other companies to resell. Through a straightforward approach, a company lets stakeholders know what they offer in their advertisements.

Example: To help reach more customers, a small business sells their socks to a department store.

  1. Call to action (CTA)

Call-to-action marketing motivates customers to purchase, join or perform some other action right away. This involves signing up for a service or completing a purchase after viewing an advertisement.

Example: An apartment complex sends a promotional email that says “Register today!” to encourage consumers to lease that day.

  1. Close range marketing (CRM)

Close range marketing, also known as proximity or hyperlocal marketing, is the practice of using Wi-Fi or Bluetooth to send advertisements to people in a close radius of a business.

Example: A local pizzeria sends coupons to those within a 10-mile radius of their restaurant to promote their reopening.

 

 

 

  1. Content

Content marketing seeks to create and share online material such as blogs, social media posts or videos. Its strategy is to stimulate interest in specific products or brands without directly promoting any brand. It also increases the business presence and provides valuable information to customers.

Example: A dog shampoo company writes a regular blog informing customers about the ingredients in their shampoos and offering tips for washing dogs.

  1. Direct

Direct marketing is the communication with customers through mail, flyers, emails and other promotional materials without use of a third party marketing company. Companies focus on having a call to action and personalizing messages for consumers.

Example: To promote their spring special for cutting lawns, a landscaping company leaves flyers on the doors of homes nearby..

  1. Email

Email marketing sends a commercial message to a large group through email. Using an email list of targeted customers, companies distribute advertisements and company updates. Email lists grow enticing consumers to sign up in exchange for rewards such as an e-book or free trial.

Example: A newspaper group sends an mass email to past subscribers advertising a deal to save $20 if they resubscribe now. The bottom of the email features a big button flashing “Subscribe now.”

 

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