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List Of Marketing Topics

List Of Marketing Topics

Marketing is "an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders".Another definition, perhaps simpler and more universal, is the process of moving people closer to making a decision to purchase or repurchase a company's products. Simply, if it does not facilitate a "sale" then it is not marketing.

Contents

  • Marketing Fundamentals
  • Marketing strategies and paradigms
  • Marketing management
  • Product management
  • Pricing
  • Promotion
  • Distribution
  • Direct marketing
  • Consumer Behavior
  • Marketing research
  • Services marketing
  • E-marketing
  • Evolution of marketing
  • Criticisms
  • Marketing Fundamentals

    Marketing consists of all activities designed to generate and facilitate any exchange intended to satisfy human needs or wants. More simply put in business terms, activities designed to plan, price, promote and distribute products or services to target markets

    4 P's of Marketing

  • Product - the products or services you offer and are they unique, superior, easier to use
  • Price - how much to sell your products for, based on your cost and value to potential customers
  • Promotion - communicating to potential customers to create an awareness of your business
  • Place - your business location and methods of distributing your products
  • Why You Need To Market

    Marketing is your method of communicating to people that your company, product or service exists. It' no use having the best product in the world if nobody knows about it or about you

    Typical Arguments For Not Marketing

  • I'll alert my competitors to what I'm doing
  • I don't want to grow too fast
  • I might look to successful
  • I don't want to get more business than I can handle
  • Nice Problems To Have

  • If your competitors are doing their homework, they already know what you're doing
  • Your business won't grow at all if you don't market it in some form
  • Would you rather look unsuccessful?
  • An abundance of customers is usually better than no customers
  • 10 Common Marketing Methods

    There are many methods of marketing, from simple to elaborate and from inexpensive to extremely costly. All or only some of these may be applicable to your business, but you can choose the ones that are and create a powerful marketing strategy. The following list outlines some common marketing and communication methods used by millions of businesses to reach their potential customers:

  • Print advertising in newspapers, magazines, business journals, community newsletters, etc
  • Developing sales flyers, brochures or newsletters for distribution to potential customers
  • Attend trade shows or exhibitions related to your industry, product or business
  • Press releases and public service announcements in newspapers. Usually free and good exposure
  • Cooperative marketing efforts (in advertising, etc) with a business that compliments yours
  • Join community networking groups like your local chamber of commerce or business committee
  • Join professional associations through your industry, business or personal credentials
  • Internet marketing is an exciting and inexpensive method of regional, national or global marketing
  • Telemarketing to potential customers off a list or out of the telephone book
  • Direct marketing with written correspondence using a list to mail or fax marketing literature
  • Marketing strategies and paradigms

    Strategy is the crafting of plans to reach goals. Marketing strategies are those plans designed to reach marketing goals. A good marketing strategy should integrate an organization’s marketing goals, policies, and action sequences (tactics) into a cohesive whole. The objective of a marketing strategy is to put the organization into a position to carry out its mission effectively and efficiently and they are basically based on the firms mission statment

    A marketing strategy serves as the foundation of a marketing plan. A marketing plan contains a list of specific actions required to successfully implement a specific marketing strategy. An example of marketing strategy is as follows: "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 good marketing strategy should integrate an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole. The objective of a marketing strategy is to provide a foundation from which a tactical plan is developed. This allows the organization to carry out its mission effectively and efficiently

    Types Of Marketing Strategies

    There are only three marketing strategies needed to grow a business: (1) Increase the number of customers (2) Increase the average transaction amount, and (3) Increase the frequency of repurchase

    Every marketing strategy should be measured by it's ability to directly impact and improve upon each of these three factors

    Increasing only one factor will produce linear business growth. Increasing all three factors will produce geometric business growth

    Marketing Strategy #1. Increase the number of customers

  • Increasing the total number of customers is the first step most business owners and managers take to grow their business
  • Losses can occur when inexperienced sales personnel are put in charge of designing and implementing a marketing program - investing corporate resources to find more customers
  • Executed correctly, basic marketing strategies cost efficiently produce new prospects who are ready, willing and able to buy products or services. The main purpose of a marketing strategy is to give sales personnel prospects to convert into paying customers
  • Rewarding existing customers for referring new ones is one easy step business owners can take to increase their total number of customers
  • Marketing Strategy #2. Increase the average transaction amount

  • Owners and managers spend most of their time operating their business and searching for new customers. They often overlook the customers they see regularly. These repeat customers are usually taken for granted and left to conduct entire transactions without ever being asked if they would like to buy more product or service
  • Complacency, expecting customers to buy a minimum amount of product or service without ever being asked to buy more, can be the undoing of a business. This attitude can eventually cause customers to spend less money. Customers who aren�t continuously offered compelling reasons to keep buying more of the same products and services from one business will look for new reasons to buy from another
  • Cross selling and upselling, systematically offering customers more value via additional products or services at the point of sale, are two simple steps business owners can take to increase their average transaction amount
  • Marketing Strategy #3. Increase the frequency of repurchase

  • In an established business, an average customer purchasing pattern develops and (like the average transaction amount) is usually taken for granted and rarely improved upon
  • A customer's repeat business is earned by the business who gives the customer what they want. Without having basic marketing strategies or processes for consistently offering customers more of what they want, repeat business is earned less frequently
  • Frequently communicating news and offers to past and present customers via telephone or mail generally increases their frequency of repurchase and is one more step owners can take to grow their business
  • A marketing paradigm is a set of procedures and attitudes that, taken together, define how marketing is done

    Marketing, in one form or another is at least as old as civilization, but modern marketing as an applied art and science began in the 1960s and 70s. It originated in consumer markets where relatively low-valued products were sold to mass markets using mass media. Marketing theory held that the first step was to determine customer needs, then next, produce a product or service that will satisfy these needs

    Marketing management

    Marketing management is the practical application of marketing techniques. It is the analysis, planning, implementation, and control of programs designed to create, build, and maintain mutually beneficial exchanges with target markets. The marketing manager has the task of influencing the level, timing, and composition of demand in way that will achieve organizational objectives

    Marketing Management Tips

    This management tip is intended to help you focus on a key issue that is important to your success as a manager

  • #M1:Your biggest business challenge is your competition They have to take your customers to survive or grow. How are they going to do that? How can you stop them? How can you steal their customers? Don't wait for it to happen
  • #M2:Follow Through on Sales Promises Don't let your sales people make promises the company can't meet. If they tell a customer they can have 100 gross of widgets "tomorrow before 10", they better be sure that many are already in the warehouse. Nothing loses customers faster than broken promises
  • #M3:If you're not #1 in your market space, define a new market space in which you can be Number 1
  • #M4:Move your ReceptionistIn many companies the receptionist is in admistration. Smart companies recognize the impact the receptionist has on the company's image as the first, and most frequent, contact a customer or potential customer has with the company. They move the receptionist into the Marketing Department
  • #M5:"Early to Bed, Early to Rise... Work Like a Dog, and Advertise." With apologies to Poor Richard's Almanac, this adage reminds us just how important advertising is to the success of any business. Hard work isn't enough. Customers have to know your product or service is available
  • #M6:The Best Product Doesn't Always Win Just having a better product is not enough. You have to let your customers know about it and why it's better. Then you have to convince them it is better
  • Product management

    Because the term marketing is so often equated with marketing communications, let’s refer to this market-driven role as product management

    You need product management if you want low-risk, repeatable, market-driven products and services. It is vastly easier to identify market problems and solve them with technology than it is to find buyers for your existing technology

    Product Management identifies a market problem, quantifies the opportunity to make sure it’s big enough to generate profit, and then articulates the problem to the rest of the company. We communicate the market opportunity to the executive team with business rationale for pursuing the opportunity including financial forecasts and risk assessment. We communicate the problem to Development in the form of market requirements; we communicate to Marketing Communications using positioning documents, one for each type of buyer; we support the sales effort by defining a sales process supported by the requisite sales tools so that the customer can choose the right products and options

    If you don’t want to be market-driven, you don’t need product management. Some companies will continue to believe that customers don’t know their problems. Some companies believe that they have a role in furthering the science and building the next great thing.These companies don’t need product management—they only need project management, someone to manage the budgets and schedules. But these companies also need to reexamine their objectives. Science projects cannot be made into products in the short-term. Don’t expect revenues if your company is focused on the “R” in Research and Development. Product management can guide you in the “D” in R&D—the development of technology into problem-solving products

    Product Management is one of the four areas of marketing. The other three parts of the marketing mix are pricing, promotion, and distribution

    Product management is a function within a company dealing with the day-to-day management and welfare of a product or family of products at all stages of the product lifecycle.

    The product management function is responsible for defining the products in the marketing mix. Product management typically deals with:

  • Defining new products and product requirements (New Product Development)
  • Defining product business criteria including managing costs
  • Securing internal resources for product team
  • Translating feature requirements into engineering specifications
  • Working across all functions to bring a product to launch
  • Leading teams to ensure execution towards product objectives
  • Defining supportability requirements
  • Evangelizing the product internally across all functions
  • Evangelizing the product externally with press, customers, and partners
  • Bringing new products to market
  • Product differentiation
  • Product positioning and outbound messaging
  • Product Life Cycle considerations
  • Product portfolio management
  • Product management may also represent an organization's approach to the process of managing and marketing its products and services as smaller businesses inside the larger enterprise, supported by multi-function product teams (led by product managers) and a standard product development process

    Product management typically deals with all of the end-to-end aspects of a product or product line including product profitability, the role may be split with closely related functions Product marketing, program management, and project management

    Pricing

    Pricing is one of the four p's of the marketing mix. The other three aspects are product management, promotion, and place. It is also a key variable in microeconomic price allocation theory

    Pricing is the manual or automatic process of applying prices to purchase and sales orders, based on factors such as: a fixed amount, quantity break, promotion or sales campaign, specific vendor quote, price prevailing on entry, shipment or invoice date, combination of multiple orders or lines, and many others. Automated systems require more setup and maintenance but may prevent pricing errors

    A well chosen price should do three things:

  • Achieve the financial goals of the firm (eg.: profitability)
  • Fit the realities of the marketplace (will customers buy at that price?)
  • Support a product's positioning and be consistent with the other variables in the marketing mix
  • Price is influenced by the type of distribution channel used, the type of promotions used, and the quality of the product
  • Price will usually need to be relatively high if manufacturing is expensive, distribution is exclusive, and the product is supported by extensive advertising and promotional campaigns
  • A low price can be a viable substitute for product quality, effective promotions, or an energetic selling effort by distributors
  • Pricing Strategies Matrix

  • Premium Pricing:Use a high price where there is a uniqueness about the product or service. This approach is used where a a substantial competitive advantage exists. Such high prices are charge for luxuries such as Cunard Cruises, Savoy Hotel rooms, and Concorde flights

  • Penetration Pricing:The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased. This approach was used by France Telecom in order to attract new corporate clients
  • Economy Pricing:This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Supermarkets often have economy brands for soups, spaghetti, etc
  • Price Skimming:Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply. Manufacturers of digital watches used a skimming approach in the 1970s. Once other manufacturers were tempted into the market and the watches were produced at a lower unit cost, other marketing strategies and pricing approaches are implemented
  • Premium pricing, penetration pricing, economy pricing, and price skimming are the four main pricing policies/strategies. They form the bases for the exercise. However there are other important approaches to pricing

  • Psychological Pricing:This approach is used when the marketer wants the consumer to respond on an emotional, rather than rational basis. For example 'price point perspective' 99 cents not one dollar
  • Product Line Pricing:Where there is a range of product or services the pricing reflect the benefits of parts of the range. For example car washes. Basic wash could be $2, wash and wax $4, and the whole package $6
  • Optional Product Pricing:Companies will attempt to increase the amount customer spend once they start to buy. Optional 'extras' increase the overall price of the product or service. For example airlines will charge for optional extras such as guaranteeing a window seat or reserving a row of seats next to each other
  • Captive Product Pricing:Where products have complements, companies will charge a premium price where the consumer is captured. For example a razor manufacturer will charge a low price and recoup its margin (and more) from the sale of the only design of blades which fit the razor
  • Product Bundle Pricing:Here sellers combine several products in the same package. This also serves to move old stock. Videos and CDs are often sold using the bundle approach
  • Promotional Pricing:Pricing to promote a product is a very common application. There are many examples of promotional pricing including approaches such as BOGOF (Buy One Get One Free)
  • Geographical Pricing:Geographical pricing is evident where there are variations in price in different parts of the world. For example rarity value, or where shipping costs increase price
  • Value Pricing:This approach is used where external factors such as recession or increased competition force companies to provide 'value' products and services to retain sales e.g. value meals at McDonalds
  • Promotion

    Promotion is one of the four aspects of marketing. The other three parts of the marketing mix are product management, pricing, and distribution. Promotion involves disseminating information about a product, product line, brand, or company

    Promotion is the specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives

    The role of promotion marketing is to deliver marketing innovation for our brands by creating ideas & strategies that motivate consumers to use our products, elevate brand relevance, and generate volume growth for our company

    Promotion marketing not only creates short term impact for the brand, but also positions the brand for the future by creating motivating tactics that actively involve the consumer. Motivation can be anything from online games to reward programs to free toys in the box. No matter what the tactic, promotion marketing works with the brands objectives to find the right promotion to help build the brand and connect with consumers

    Success Factors

  • Demonstrates creativity by recognizing opportunities and generating new ideas and insights that have a positive impact on the business
  • Utilizes critical thinking by understanding, evaluating and leveraging facts and financial budgets
  • Operates with an expectation of excellence for self and team
  • Displays sense of proactive urgency and passion in addressing current and future promotion needs
  • Communicates across levels and channels to advance promotion initiatives
  • Creativity is very important in promotion marketing, but it's not all about the fun new toys. It's about finding new ways to connect and motivate our consumers. With new challenges facing the brand team everyday, we find ways to motivate consumers to pick our products through a variety of tactics like couponing, toy premiums, retailer programs, sponsorships, or loyalty programs

    Focused critical thinking helps to leverage both ideas and numbers to move the business forward. It's not enough just to create promotions that meet brand objectives, but the promotions need to be executed flawlessly. From fine tuning the budget, to conducting risk management, creativity is leveraged in both ideas and numbers

    Distribution

    'Distribution' is one of the four aspects of marketing. A distribution business is the middleman between the manufacturer and retailer or (usually) in commercial or industrial the business customer. After a product is manufactured by a supplier/factory, it is typically stored in a distribution company's warehouse. The product is then sold to retailers or customers

    Distribution Channels:"All the organisations through which a product must pass between its point of production and consumption"

    Frequently there may be a chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or, rather more exotically, as the 'channel'. Each of the elements in these chains will have their own specific needs; which the producer must take into account, along with those of the all-important end-user

    Functions of a Distribution Channel

    The main function of a distribution channel is to provide a link between production and consumption. Organisations that form any particular distribution channel perform many key functions:

  • 1.Information: Gathering and distributing market research and intelligence - important for marketing planning
  • 2.Promotion:Developing and spreading communications about offers
  • 3.Contact: Finding and communicating with prospective buyers
  • 4.Matching: Adjusting the offer to fit a buyer's needs, including grading, assembling and packaging
  • 5.Negotiation: Reaching agreement on price and other terms of the offer
  • 6.Physical distribution: Transporting and storing goods
  • 7.Financing: Acquiring and using funds to cover the costs of the distribution channel
  • 8.Risk taking: Assuming some commercial risks by operating the channel (e.g. holding stock)
  • Direct marketing

    Direct marketing is a form of marketing that attempts to send its messages directly to consumers, using "addressable" media, such as mail. Therefore, direct marketing differs from regular advertising in that it does not place its messages on a third party medium, or in the agora, such as a billboard or a radio commercial would. Instead, the marketing of the service or commodity is addressed directly to the consumer

    Direct marketing is a sometimes controversial sales method by which advertisers approach potential customers directly with products or services. The most common forms of direct marketing are telephone sales, solicited or unsolicited emails, catalogs, leaflets, brochures and coupons. Successful direct marketing also involves compiling and maintaining a large database of personal information about potential customers and clients. These databases are often sold or shared with other direct marketing companies

    For many companies or service providers with a specific market, the traditional forms of advertising (radio, newspapers, television, etc.) may not be the best use of their promotional budgets. For example, a company which sells a hair loss prevention product would have to find a radio station whose format appealed to older male listeners who might be experiencing this problem. There would be no guarantee that this group would be listening to that particular station at the exact time the company's ads were broadcast. Money spent on a radio spot (or television commercial or newspaper ad) may or may not reach the type of consumer who would be interested in a hair restoring product

    This is where direct marketing becomes very appealing. Instead of investing in a scattershot means of advertising, companies with a specific type of potential customer can send out literature directly to a list of pre-screened individuals. Direct marketing firms may also keep email addresses of those who match a certain age group or income level or special interest. Manufacturers of a new dog shampoo might benefit from having the phone numbers and mailing addresses of pet store owners or dog show participants. Direct marketing works best when the recipients accept the fact that their personal information might be used for this purpose. Some customers prefer to receive targeted catalogs which offer more variety than a general mailing

    Direct marketing does have some negative aspects, however. Many people are unaware of how the personal information they include on an order form or survey may be used for targeted advertising later. One prevailing philosophy in direct mailing circles is the idea that if a customer orders a swimsuit from a clothing catalog, he or she might naturally be interested in swimming pool supplies or exercise equipment as well. This could lead to direct marketing overload, as potential customers and clients become overwhelmed with catalogs, unsolicited emails and unwanted phone calls. There is also the concern that personal information collected by legitimate direct marketing agencies could be purchased by unscrupulous or shady companies for the express purpose of fraud

    Direct marketing is the best campaign strategy for businesses that want to connect with their customers in a personal and compelling way. Direct marketing encompasses direct mail, database marketing, email marketing, online marketing and search engine optimization

    Why use direct marketing?

    Direct marketing allows you to generate a specific response from targeted groups of customers. It's a particularly useful tool for small businesses because it allows you to:

  • Focus limited resources where they are most likely to produce results
  • Measure the success of campaigns accurately by analysing responses
  • Test your marketing - you can target a representative sample of your target audience and see what delivers the best response rates before developing a full campaign
  • A direct marketing campaign can help you to achieve the following key objectives:

  • Increasing sales to existing customers
  • Building customer loyalty
  • Re-establishing lapsed customer relationships
  • Generating new business
  • You can use direct marketing in both business-to-business and consumer markets. Of course, your strategy will need to be modified depending on which you're targeting. While business contacts are used to receiving marketing emails, consumers may be less receptive to mailshots or telemarketing calls - so you need to plan your approach carefully

    Direct Marketing Channel

    Any medium that can be used to deliver a communication to a customer can be employed in direct marketing. Direct marketers often refer to such media as "addressable" to distinguish them from "mass" media, such as television, radio, and print.

  • Direct Mail:Probably the most commonly used medium for direct marketing is direct mail, in which marketing communications are sent to customers using the postal service. In many developed countries, direct mail represents such a significant amount of the total volume of mail that special rate classes have been established. In the United States and United Kingdom, for example, there are bulk mail rates that enable marketers to send mail at rates that are substantially lower than regular first-class rates. In order to qualify for these rates, marketers must format and sort the mail in particular ways - which reduces the handling (and therefore costs) required by the postal service
  • Direct mail permits the marketer to design marketing pieces in many different formats. Indeed, there is an entire subsector of the industry that produces specialized papers, printing, envelopes, and other materials for direct mail marketing

    Direct mail allows you to get information about your products and services directly into the hands of people who may be interested in it. Though it's often dismissed as junk mail, it can be highly effective in both business and consumer markets if it's properly planned and researched

    As well as a mailing letter, you typically include a range of enclosures such as a product brochure, order-form and pre-paid reply envelope. Don't cut corners in preparing your materials - the success of your mailshot depends on it.Some of the common formats, include:

  • 1.Catalogs: Multi-page, bound promotions, usually featuring a selection of products for sale
  • 2.Self-mailers: Pieces usually created from a single sheet that has been printed and folded. For instance, a common practice is to print a page-length advertisement or promotion on one side of a sheet of paper. This is then folded in half or in thirds, with the promotional message to the inside. The two outside surfaces are then used for the address of the recipient and some "teaser" message designed to persuade the customer to open the piece
  • 3.Postcards: Simple, two-sided pieces, with a promotional message on one side and the customer's address on the other
  • 4.Envelope mailers:Mailings in which the marketing material is placed inside an envelope. This permits the marketer to include more than one insert. When more than one advertiser is included, this is often called "marriage mail". Valpak is one of the largest examples of a marriage mail service
  • 5.Snap Mailers: Mailers that fold and seal with pressure. The sides detach and the mailer is opened to reveal the message
  • 6.Dimensional Mailers: Mailers that have some dimension to them, like a small box
  • 7.Intelligent Documents: Programmable mail pieces built dynamically from database information, and printed digitally for faster production
  • Leaflet drops and handouts
  • Leafleting is probably the simplest and cheapest form of direct marketing. It may be worth considering unaddressed leaflet drops and street handouts if you want to promote your business in your local area, particularly to consumers

    However, leafleting brings significantly lower response rates than direct mail. It's less targeted - you don't know the characteristics of the recipients of your leaflet and you can't personalise your message. As a result it's often best to use leaflets for products or services of universal appeal, or when you need a large number of leads

  • Telemarketing
  • In telemarketing, marketers contact the customer via telephone calls. One of the original attractions of telemarketing was the speed with which marketing campaigns could be executed. While direct mail is cost-effective, it is relatively slow, since marketing pieces must be shipped by mail

    Telemarketing also lends itself well to products and services that are complex to buy, such as switching to another telephone company or purchasing a financial service. Certain types of transactions may also be subject to government regulation; telemarketing permits a company representative to walk the customer through the purchase, while ensuring compliance with laws

    While not as varied as direct mail, telemarketing can take several forms:

  • 1.Outbound telemarketing: Calls made to customers. By using autodialers and predictive dialers, call centers can call a large number of customers
  • 2.Inbound telemarketing: Promotions and offers made when a customer calls the center
  • 3.Voice messages: A number of firms employ special technology to call customers' answering machines
  • Contacting consumers by telephone can offer a number of advantages over other forms of marketing. It allows you to:

  • 1.Gauge the customer's interest immediately
  • 2.Ask questions to assess the customer's needs
  • 3.Explain technical or complex messages more effectively
  • But there are significant disadvantages. Many people find marketing calls an unwelcome interruption - particularly in the evenings when you're most likely to get them at home. Consider carefully whether consumer telemarketing fits your business' image and whether you're willing to risk alienating customers

  • Email marketing
  • Email is an extremely cheap form of direct marketing - a message can be sent to thousands of recipients for next to nothing. It's also the easiest way to target the exact person you need to reach. Measuring response rates is simple and recent figures show that they are higher than those for mailshots - probably because replying to emails is so straightforward

    Email is proving to be an increasingly popular medium for direct marketers, in large part because of its relatively low cost, but also because customer responses can be generated rapidly. When sent to customers who have given their permission to receive such marketing material, email marketing can be a highly cost-effective method of promotion. However, when performed without permission, or used to send inappropriate messages, the result is e-mail spam, which most Internet users and administrators consider an abuse of network resources and a nuisance. Spam is prohibited by the appropriate-use policies of almost all Internet service providers and increasingly is the subject of laws and regulations aimed at curbing the practice

    New technologies have made it possible to produce eye-catching electronic newsletters with built-in response mechanisms. If you don't have in-house expertise, there are specialist firms which can help develop newsletters and customise them to particular audiences

    However, there are disadvantages, too. Email contacts go out of date faster than either addresses or telephone numbers, so you need to be particularly active in cleaning your database. And the increasing amount of spam - unsolicited email - means your marketing emails will need to stand out if they aren't to be deleted before being read. Increasingly sophisticated anti-spam software also means that many marketing emails are deleted before they arrive at their destination

  • Direct Response
  • A related form of marketing is direct response marketing. In direct marketing, the marketer contacts the potential customer directly, but in direct response marketing the customer responds to the marketer directly. Its most common form today is infomercials. They try to achieve a direct response via television presentations. Viewers respond via telephone or internet, credit card in hand. Other media, such as magazines, newspapers, radio, and e-mail can be used to elicit the response, but they tend to achieve lower response rates than television

    Order forms or coupons in magazines and newspapers are another type of direct response marketing. Mail order is a term, seldom used today, that describes a form of direct response in which customers respond by mailing a completed order form to the marketer. Mail order is slow and response rates are low. It has been eclipsed by toll-free telephone numbers and the internet

    Direct marketing typically relies heavily on computer databases and is therefore an example of database marketing. Most direct marketing is done by companies whose only function is to manage and perform direct advertising, rather than by the advertised entity itself. The services provided by these companies includes the maintenance of mailing lists and the production of the direct mail pieces themselves in a factory called a lettershop

    Direct marketers have been long-time customers of computer databases, and they often have very sophisticated criteria of inclusion and exclusion in their mailing lists. Recently, political campaigns have begun to appropriate the methods of direct marketers (or to employ direct marketing firms) to raise money and create activism

    Consumer behavior

    Consumer behaviour is the study of how people buy, what they buy, when they buy and why they buy. It is a subcategory of marketing that blends elements from psychology, sociology, sociopsychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general

    Intelligent health consumers have the following characteristics:

  • 1.They seek reliable sources of information .They are appropriately skeptical about advertising claims, statements made by talk-show guests, and "breakthroughs" reported in the news media. New information, even when accurate, may be difficult to place in perspective without expert guidance
  • 2.They maintain a healthy lifestyle.This reduces the odds of becoming seriously ill and lowers the cost of health care. Prudent consumers avoid tobacco products, eat a balanced diet, exercise appropriately, maintain a reasonable weight, use alcohol moderately or not at all, and take appropriate safety precautions (such as wearing a seat belt when driving)
  • 3.They select practitioners with great care.It has been said that primary-care physicians typically know a little about a lot and specialists typically know a lot about a little. The majority of people would do best to begin with a generalist and consult a specialist if a problem needs more complex management
  • 4.They undergo appropriate screening tests and, when illness strikes, use self-care and professional care as needed. Excellent guidebooks are available to help decide when professional care is needed
  • 5.They communicate effectively.They present their problems in an organized way, ask appropriate questions, and tactfully assert themselves when necessary
  • 6.When a health problem arises, they take an active role in its management.This entails understanding the nature of the problem and how to do their part in dealing with it. People with chronic illnesses, such as diabetes or high blood pressure, should strive to become "experts" in their own care and use their physicians as "consultants"
  • 7.They understand the logic of science and why scientific testing is needed to test and to determine which theories and practices are valid
  • 8.They are wary of treatments that lack scientific support and a plausible rationale.Most treatments described as "alternative" fit this description
  • 9.They are familiar with the economic aspects of health care.They obtain appropriate insurance coverage, inquire in advance about professional fees, and shop comparatively for medications and other products
  • 10. They report frauds, quackery, and other wrongdoing to appropriate agencies and law enforcement officials.Consumer vigilance is an essential ingredient of a healthy society
  • Consumer Behavior and Marketing Strategy

  • The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products)
  • The the psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media)
  • The behavior of consumers while shopping or making other marketing decisions
  • Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome
  • How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and
  • How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer
  • Understanding these issues helps us adapt our strategies by taking the consumer into consideration. For example, by understanding that a number of different messages compete for our potential customers’ attention, we learn that to be effective, advertisements must usually be repeated extensively. We also learn that consumers will sometimes be persuaded more by logical arguments, but at other times will be persuaded more by emotional or symbolic appeals. By understanding the consumer, we will be able to make a more informed decision as to which strategy to employ

    Marketing research

    Market research is the process of systematic gathering, recording and analyzing of data about customers, competitors and the market. Market research can help create a business plan, launch a new product or service, fine tune existing products and services, expand into new markets etc. It can be used to determine which portion of the population will purchase the product/service, based on variables like age, gender, location and income level. It can be found out what market characteristics your target market has. With market research companies can learn more about current and potential customers

    Market research is the process of collecting and analyzing information about the customers you want to reach, called your target market. This information provides you with the business intelligence you need to make informed decisions. Market research can help you create a business plan, launch a new product or service, fine tune your existing products and services, expand into new markets, develop an advertising campaign, set prices or select a business location

    The purpose of market research is to help companies make better business decisions about the development and marketing of new products. Market research represents the voice of the consumer in a company

    Types Of Market Research

    Market research methods fall into two basic categories: primary and secondary. Your research might involve one or both, depending on your company’s needs

  • 1.Primary research involves collecting original data about the preferences, buying habits, opinions and attitudes of current or prospective customers. This data can be gathered in focus groups, surveys and field tests
  • 2.Secondary research is based on existing data from reference books, magazines and newspapers, industry publications, chambers of commerce, government agencies or trade associations. It yields information about industry sales trends and growth rates, demographic profiles and regional business statistics
  • Market research allows you to pinpoint a host of key business factors about your market. It can help you identify:

  • 1.Growth trends in your business sector
  • 2.Size of your target market
  • 3.Best location for your business
  • 4.How your business stacks up against the competition
  • 5.Factors that influence buying decisions
  • 6.Degree of demand for your product or service
  • A list of questions that can be answered through market research:

  • What is happening in the market? What are the trends? Who are the competitors?
  • How do consumers talk about the products in the market?
  • Which needs are important? Are the needs being met by current products?
  • A simple example of what market research can do for a business is the following. At the company Chevrolet they brought several disciplines together in a cross-functional team to developed a concept for a completely new Corvette. This team enabled the marketers to come up with an alternative concept, one that balanced 4 attributes: comfort and convenience, quality, styling, and performance. This was considered radical because comfort and convenience were not traditional Corvette values. However, market research demonstrated that consumers supported the alternative concept. As a result the new Corvette was a huge success in the market
  • With market research you can get some kind of confirmation that there is a market for your idea, and that a successful launch and growth are possible
  • Market research for business planning

    For starting up a business there are a few things should be found out through market research in order to know if your business is feasible. These are things like:

  • Market information
  • Market information is making known the prices of the different commodities in the market, the supply and the demand. Information about the markets can be obtained in several different varieties and formats. The most basic form of market information is the best quotation and last sale data, including the number of shares, with respect to a particular security at a given time

    Examples of market information questions are:

  • Who are the customers?
  • Where are they located and how can they be contacted?
  • What quantity and quality do they want?
  • What is the best time to sell?
  • What is the long-term or historical price data over a number of years?
  • What is the expected production in the country?
  • Is there more demand for one product or another? Etc
  • Market segmentation
  • Market segmentation is the division of the market or population into subgroups with similar motivations. Widely used bases for segmenting include geographic differences, personality differences, demographic differences, use of product differences, and psychographic differences

  • Market Trends
  • The upward or downward movements of a market, during a period of time.The market size is more difficult to estimate if you are starting with something completely new. In this case, you will have to derive the figures from the number of potential customers or customer segments.But besides information about the target market you also need information about your competitor, your customers, products etc. A few techniques are:

  • Customer analysis
  • Competitor analysis
  • Risk analysis
  • Product research
  • Advertising research
  • Marketing is often defined as providing products and services that help satisfy the needs of a particular market. To find out what the market's needs are marketers must learn as much as they can about their customers. In fact, marketers have an insatiable desire to find out more and more about who they sell to. So much so that it has created an enormous marketing research industry that supports the need for more information

    Tips on Simple Market Research

  • Ask your customers for suggestions. Provide cards for them to fill out (with name and address) and leave in a fish bowl
  • Analyze the rich information you already have such as invoices, customer credit applications, and salespeople’s reports. See what these items tell you about sales and customers
  • Use your trade associations. Read their studies and journals or call them when you need information
  • Ask the government. Agencies ranging from the U.S. Bureau of the Census to local economic development offices can provide a wealth of market information
  • Create an advisory board and seek members’ observations and opinions regularly
  • Market Research Techniques

    Market research can provide critical information about the buying habits, needs, preferences and opinions of current and prospective customers. While there are many ways to perform market research, most businesses use one or more of five basic methods: surveys, focus groups, personal interviews, observation and field trials. The type of data you need and how much money you’re willing to spend will determine which techniques you choose for your business

  • 1.Surveys: Using concise, straightforward questionnaires, you can analyze a sample group that represents your target market. The larger the sample, the more reliable the results
  • a>In-person surveys are one-on-one interviews typically conducted in high-traffic locations such as shopping malls. They allow you to present people with samples of products, packaging or advertising and gather immediate feedback. In-person surveys can generate response rates of more than 90 percent, but they are costly. With the time and labor involved, the tab for an in-person survey can run as high as $100 per interview
  • b>Telephone surveys are less expensive than in-person surveys, but costlier than mail. However, due to consumer resistance to relentless telemarketing, getting people to participate in phone surveys has grown increasingly difficult. Telephone surveys generally yield response rates of 50 percent to 60 percent
  • c>Mail surveys are a relatively inexpensive way to reach a broad audience. They're much cheaper than in-person and phone surveys, but they only generate response rates of 3 percent to 15 percent. Despite the low return, mail surveys are still a cost-effective choice for small businesses
  • d>Online surveys usually generate unpredictable response rates and unreliable data because you have no control over the pool of respondents. But an online survey is a simple, inexpensive way to collect anecdotal evidence and gather customer opinions and preferences
  • 2.Focus groups:In focus groups, a moderator uses a scripted series of questions or topics to lead a discussion among a group of people. These sessions take place at neutral locations, usually at facilities with videotaping equipment and an observation room with one-way mirrors. A focus group usually lasts for one to two hours, and it takes at least three groups to get balanced results
  • 3.Personal interviews:Like focus groups, personal interviews include unstructured, open-ended questions. They usually last for about an hour and are typically recorded.Focus groups and personal interviews provide more subjective data than surveys do. The results are not statistically reliable, which means they usually don't represent a large segment of the population. Nevertheless, focus groups and interviews yield valuable insights into customer attitudes and are excellent ways to uncover issues related to new products or service development
  • 4.Observation: Individual responses to surveys and focus groups are sometimes at odds with people's actual behavior. When you observe consumers in action by videotaping them in stores, at work or at home, you can observe how they buy or use a product. This gives you a more accurate picture of customers' usage habits and shopping patterns
  • 5.Field trials: Placing a new product in selected stores to test customer response under real-life selling conditions can help you make product modifications, adjust prices or improve packaging. Small business owners should try to establish rapport with local store owners and Web sites that can help them test their products
  • Services marketing

    Services marketing is marketing based on relationship and value. It may be used to market a service or a product

    Marketing a service-base business is different from marketing a product-base business

    A service is the action of doing something for someone or something. It is largely intangible (i.e. not material). A product is tangible (i.e. material) since you can touch it and own it. A service tends to be an experience that is consumed at the point where it is purchased, and cannot be owned since is quickly perishes. A person could go to a café one day and have excellent service, and then return the next day and have a poor experience. So often marketers talk about the nature of a service as:

  • Inseparable - from the point where it is consumed, and from the provider of the service. For example, you cannot take a live theatre performance home to consume it ( a DVD of the same performance would be a product, not a service)
  • Intangible - and cannot have a real, physical presence as does a product. For example, motor insurance may have a certificate, but the financial service itself cannot be touched i.e. it is intangible
  • Perishable - in that once it has occurred it cannot be repeated in exactly the same way. For example, once a 100 metres Olympic final has been run, there will be not other for 4 more years, and even then it will be staged in a different place with many different finalists
  • Variability - since the human involvement of service provision means that no two services will be completely identical. For example, returning to the same garage time and time again for a service on your car might see different levels of customer satisfaction, or speediness of work
  • Right of ownership - is not taken to the service, since you merely experience it. For example, an engineer may service your air-conditioning, but you do not own the service, the engineer or his equipment. You cannot sell it on once it has been consumed, and do not take ownership of it
  • When one markets a service business, one must keep in mind that reputation, value, delivery of service and follow-through are keys to a successful venture

    "Managing the evidence" refers to the act of informing customers that the service encounter has been performed successfully. It is best done in subtle ways like providing examples or descriptions of good and poor service that can be used as a basis of comparison. The underlying rationale is that a customer might not appreciate the full worth of the service if they do not have a good benchmark for comparisons

    However, it is worth remembering that many of the concepts, as well as many of the specific techniques, will work equally well whether they are directed at products or services. In particular, developing a marketing strategy is much the same for products and services, in that it involves selecting target markets and formulating a marketing mix. Thus, Theodore Levitt suggested that "instead of talking of 'goods' and of 'services', it is better to talk of 'tangibles' and 'intangibles'. Levitt also went on to suggest that marketing a physical product is often more concerned with intangible aspects (frequently the `product service' elements of the total package) than with its physical properties. Charles Revson made a famous comment regarding the business of Revlon Inc.: `In the factory we make cosmetics. In the store we sell hope.' Arguably, service industry marketing merely approaches the problems from the opposite end of the same spectrum

    E-marketing

    E-marketing is a type of marketing that can be defined as achieving objectives through the use of electronic communications technology such as Internet, e-mail, Ebooks, database, and mobile phone. It is a more general term than online marketing which is limited to the use of internet technology to attain marketing objectives

    E-marketing can also be defined as"Moving elements of marketing strategies and activities to a computerized, networked environment such as the Internet. It is the strategic process of creating, distributing, promoting, and pricing goods and services to a target market over the Internet or through digital tools"

    E-marketing is the act of using the Internet as a marketing communications channel for your individual or small business

    E-mail marketing is one of the most effective ways to keep in touch with customers. It is generally cost-effective, and if done properly, can help build brand awareness and loyalty. At a typical cost of only a few cents per message, it's a bargain compared to traditional direct mail at $1 or more per piece. In addition, response rates on e-mail marketing are strong, ranging from five to 35% depending on the industry and format. Response rates for traditional mail averages in the 1-3% range

    One of the benefits of email marketing is the demographic information that customers provide when signing up for your email newsletter. Discovering who your customers really are age, gender, income and special interests, for example can help you target your products and services to their needs

    E-marketing can be in various forms (e.g. eCards, eNewsletters and ePresentations) and can be integrated into your website, incorporated into a web mailing list and delivered through an email based Newsletter, or distributed directly to a target audience

    The benefits of eMarketing include all aspects of business. Namely, electronic marketing

  • Allows you to reach a targeted, international audience instantly
  • Is much more cost effective as it removes the need for any printing and postage
  • Can be instantly updated at any time and become immediately accessible to all users
  • Is efficient to manage, making for effective time management within your organisation
  • Is a point of difference to your competitors as it is currently seen as a 'large company' practice
  • Can incorporate hyperlinks to increase traffic to your website
  • Has instant economical benefits through increased market exposure and increased prospective sales
  • some key features of "E Marketing":

  • Depth level control
  • Collect email that are related to your activities
  • Send multiple emails at once
  • If you want we can personalise E-Marketing to add feature you need!
  • Precise & Fast E-mail collecting from field of your interest
  • Simple to learn and to work with
  • Automatically removes duplicate URL addresses to avoid redundant searches
  • Automatically removes duplicate E-mails
  • Connects to a search engine using key words you provide to develop a list of URLs
  • 10· Extracts email from pages with tables & frames, CGI, PHP, ASP pages and other dynamic pages
  • 11· Can follow external URLs, with optionally "Unlimited" mode
  • 12· Specifies the maximum extraction depth level relative to starting URL
  • 13· Saves emails in an output html file which can be easily exported to many formats
  • 14· Easier to learn and use than any other email collecting program
  • Emarketing is a great way to market products and services but is seeing a major drawback in the form of e mail spam. Most of the bulk emarketing campaigns are being compared to spamming and there have been many laws devised by different countries to effectively deal with the situation

    E-marketing Tips

    E-marketing is decreasing in usefulness due to spam, fear of viruses and sheer volume. However, your efforts can be more effective by using these tips:

  • 1.The best application for e-mail marketing is to communicate with existing customers/prospects rather than troll for new prospects. Spamming is a no-no
  • 2.Understand how to use search engines effectively, but do not pay for preferred position
  • 3.Never use rich media (audio and/or video) within the e-mail,link to a rich media web page
  • 4.Keep the e-mail short,no more than one screen and never include an attachment. Link to pages on your web site to give them more information
  • 5.Don't look like a spammer.keep your tone friendly and informative. Avoid overblown (hyped) language
  • Evolution of marketing

    Marketing as we know it today began in the 1970s with the birth of the "marketing orientation". During the first stage of capitalism business had a production orientation. Business was concerned with production, manufacturing, and efficiency issues. By the mid 1950s a second stage emerged, the sales orientation stage. Business's prime concern was to sell what it produced. By the early 1970s a third stage, the marketing orientation stage emerged as businesses came to realize that consumer needs and wants drove the whole process. Marketing research became important. Businesses realized it was futile putting a lot of production and sales effort into products that people did not want. Some commentators claim that we are now on the verge of a fourth stage, one of a personal marketing orientation. They believe that the technology is available today to market to people on an individual basis (see personalized marketing, permission marketing, and mass customization). They feel it is no longer necessary to think in broad aggregated terms like market segments or target markets

    Marketing has become an academic discipline in itself, with tertiary degrees in the field now routinely awarded. Masters and Doctrinal degrees can be obtained in numerous subcategories of marketing including: Marketing Research, Consumer Behaviour, International Marketing, Industrial Marketing (also called b-to-b marketing), Consumer Marketing (also called b-to-c marketing), Product Management, and e-Marketing

    The Production Philosophy

  • A good product will sell itself
  • Emphasis on production to meet expanding demand
  • The Sales Philosophy

  • Early 1920’s
  • Emphasis on sales force and advertising to persuade customers
  • Rarely integrated with recognition of customer needs
  • The Marketing Concept Philosophy

  • Defines the firm’s mission in terms of the benefits and satisfactions that it offers customers
  • Emphasizes two-way communication to identify customer needs and develop/market products to meet these needs
  • Emphasizes planning to achieve profits by meeting customer needs
  • Emphasizes total systems integration to achieve profit goals
  • Criticisms

    1.High Prices

    Caused by:

  • High Costs of Distribution:A heavily promoted brand of aspirin sells for much more than a virtually identical non-branded or store-branded product. Critics charge that promotion adds only psychological value to the product rather than functional value
  • High Advertising and Promotion Costs
  • Excessive Markups
  • 2.Deceptive Practices

    Deceptive Pricing:Falsely advertising factory or wholesale prices or large reductions from phony high retail list prices

    Deceptive Promotion:Overstating a product’s features or performance, running rigged contests

    Deceptive Packaging: Exaggerating package contents through subtle design, using misleading labeling, etc.

    3.High-Pressure Selling

  • Salespeople are trained to deliver smooth, canned talks to entice purchase
  • Hard sales can occur because of prizes going to top sellers
  • High-pressure selling not good for long- term relationships
  • 4.Shoddy or Unsafe Products

  • Products not made well or service not performed well
  • Products deliver little benefit or can be harmful
  • Unsafe products due to manufacturer indifference, increased production complexity, poorly trained labor, and poor quality control
  • 5.Planned Obsolescence

  • Products needing replacement before they should be obsolete
  • Producers change consumer concepts of acceptable styles
  • Intentionally holding back attractive functional features, then introducing them later to make old model obsolete
  • 6.Poor Service to Disadvantaged Consumers

  • Poor may pay more for inferior goods
  • Redlining may occur in disadvantaged neighborhoods
  • Higher insurance premiums to people with poor credit ratings
  • Weblining can occur



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