Using Controversy for Brand Building – Benetton
Benetton is an unusual company. In today&rsquo s times when even controversial products sell themselves using wholesome, family advertising aimed at pleasing and attracting people, Benetton, with its harmless, colorful jumpers, has branded itself using some of the most controversial advertising the world has seen. And they do it as a deliberate strategy. Along the way they have also raised advertising from being just a commercial art form to one which makes bold social and political statements....
The Selling Concept in Marketing
Many organizations follow the selling concept, which holds that consumers will not buy enough of the organization's products unless it undertakes a large-scale selling and promotion effort. The concept is typically practised with unsought floods - those that buyers do not normally think of buying, such as encyclopaedias and funeral plots. These industries must be good at tracking down prospects and convincing them of product benefits.
How Do Government Buyers Make their Buying Decisions
Government buying practices often seem complex and frustrating to suppliers, who have voiced many complaints about government purchasing procedures. Those include too much paperwork and bureaucracy, needless regulations, emphasis on low bid prices, decision-making delays, frequent shifts in buying personnel and too many policy changes. Yet, despite such obstacles, selling to the government can often be mastered in a short time. The government is generally helpful in providing information about...
Sustainable Marketing Principles
Under the sustainable marketing concept, a company's marketing should support the best long-run performance of the marketing system. It should be guided by five sustainable marketing principles consumer-oriented marketing, customer-value marketing, innovative marketing, sense-of-mission marketing, and societal marketing. Consumer-oriented marketing means that the company should view and organize its marketing activities from the consumer's point of view.
The online revenue contribution
A key objective for Internet marketing is the online revenue contribution. This is a measure of the extent to which a company's online presence directly impacts the sales revenue of the organisation and can be used to influence resource allocation to the online channels. Online revenue contribution objectives can be specified for different types of products, customer segments and geographic markets. For example, in 1997, low-cost airline easyJet set an online contribution objective of 50 by the...
The Video Game Industry Marketing Blitz Strategy
In a market where many advertisers are slashing their budgets, the video game industry is taking just the opposite approach.The industry has unleashed a billion-dollar bombardment of IMC communications designed to make Mario the plumber and Munch the Gabit household names as common as Harry Potter or Britney Spears. The objective of the marketing blitz is to transform the video game from a niche market to as common an activity as watching television or going to the movies.
Consumer Franchise Building versus Nonfranchise Building Promotions
Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are consumer franchisebuilding (CFB) promotions. Consumer sales promotion efforts cannot make consumers loyal to a brand that is of little value or does not provide them with a specific benefit.
Combining Personal Selling and Advertising
With specific market situations and communications objectives, the advantages of advertising make it more effective in the early stages of the response hierarchy for example, in creating awareness and interest , whereas personal selling is more likely to be used in the later stages for example, stimulating trial and getting the order . Thus, each may be more or less appropriate depending on the objectives sought. These elements can be combined in the promotional mix to compensate for each...
Defining Market Boundaries
The crux of any strategy formulation effort is market definition The problem of identifying competitive product-market boundaries pervades all levels of marketing decisions. Such strategic issues as the basic definition of a business, the assessment of opportunities presented by gaps in the market, the reaction to threats posed by competitive actions, and the decisions on major resource allocations are strongly influenced by the breadth or narrowness of the definition of competitive boundaries....
Influence of Product Characteristics on Rate of Adoption
The characteristics of the new product affect its rate of adoption. Some products catch on almost overnight Virtual Pets , whereas others take a long time to gain acceptance Digital TV . Five characteristics are especially important in influencing an innovation's rate of adoption. For example, consider the characteristics of the MiniDisc in relation to the rate of adoption Relative advantage the degree to which the innovation appears superior to existing products. The greater the perceived...
Responding to Competitors Price Changes
How should a firm respond to a price cut that is initiated by a competitor In markets characterized by high product homogeneity, the firm should search for ways to enhance its augmented product, but if it cannot find any, it will have to meet the price reduction. If the competitor raises its price in a homogeneous product market, the other firms might not match it, unless the price increase will benefit the industry as a whole.
Consumer Goods Market Testing
In testing consumer products, the company seeks to estimate four variables trial, first repeat, adoption, and purchase frequency. The company hopes to find all these variables at high levels. In some cases, it will find many consumers trying the product but few rebuying it. Or it might find high permanent adoption but low purchase frequency as with gourmet frozen foods . Here we describe the major methods of consumer-goods market testing, from the least to the most costly.
Exchange Transactions and Relationships
Marketing occurs when people decide to satisfy needs and wants through exchange. Exchange is the act of obtaining a desired object from someone by offering something in return. Exchange is only one of many ways people can obtain a desired object. For example, hungry people can find food by hunting, fishing or gathering fruit. They could beg for food or take food from someone else. Finally, they could offer money, another good or a service in return for food. As a means of satisfying needs,...
Classical Conditioning Ads
The classical conditioning process Two factors are important for learning to occur through the associative process. The first is contiguity, which means the unconditioned stimulus and conditioned stimulus must be close in time and space. In Pavlov's experiment, the dog learns to associate the ringing of the bell with food because of the contiguous presentation of the two stimuli.
Limitations of Newspapers
While newspapers have many advantages, like all media they also have disadvantages that media planners must consider. The limitations of newspapers include their reproduction problems, short life span, lack of selectivity, and clutter. Poor Reproduction One of the greatest limitations of newspapers as an advertising medium is their poor reproduction quality.
Marketings Impact on Society as a Whole
The marketing system as we - in Europe and other developed economies outside North America are experiencing it, has been accused of adding to several 'evils' in our society at large. Advertising has been a special target. It has been blamed for creating false wants, nurturing greedy aspirations and inculcating too much materialism in our society. False Wants and Too Much Materialism Critics have charged that, in advanced nations such as the USA, the marketing system urges too much interest in...
Advantages and Disadvantages of Publicity
Publicity offers the advantages of credibility, news value, significant word-of-mouth communications, and a perception of being endorsed by the media. Beyond the potential impact of negative publicity, two major problems arise from the use of publicity timing and accuracy. Timing Timing of the publicity is not always completely under the control of the marketer.
Categories of Service Mix
As the previous examples show, services are often part of a company's total offering in the marketplace. Five categories of an offering's service mix can be distinguished 1. Pure tangible good The offering is a tangible good such as soap no services accompany the product. 2. Tangible good with accompanying services The offering consists of a tangible good accompanied by one or more services. General Motors, for example, offers repairs, maintenance, warranty fulfillment, and other services along...
Advantages and Disadvantages of Public Relations
Like the other program elements, public relations has both advantages and disadvantages. Because public relations communications are not perceived in the same light as advertising that is, the public does not realize the organization either directly or indirectly paid for them they tend to have more credibility. The fact that the media are not being compensated for providing the information may lead receivers to consider the news more truthful and credible.
Personal Selling
The final element of an organization's promotional mix is personal selling, a form of person-to-person communication in which a seller attempts to assist and or persuade prospective buyers to purchase the company's product or service or to act on an idea. Unlike advertising, personal selling involves direct contact between buyer and seller, either face-to-face or through some form of telecommunications such as telephone sales. This interaction gives the marketer communication flexibility the...
Value Chain
Michael Porter proposed the value chain as the main tool for identifying ways to create more customer value see Figure 11.2 .15 Every firm consists of a collection of activities performed to design, produce, market, deliver and support the firm's products. The value chain breaks the firm into nine value-creating activities in an effort to understand the behaviour of costs in the specific business and the potential sources of competitive differentiation. The nine value-creating activities...
Political factors
The political and regulatory environment is shaped by the interplay of government agencies, public opinion and consumer pressure groups such as CAUCE the coalition against unsolicited e-mail which were active in the mid-1990s and helped in pressurising for laws, www.cauce.org, and industry-backed organisations such as TRUSTe www.truste.org that promote best practice amongst companies. The political environment is one of the drivers for establishing the laws to ensure privacy and to collect...
An Army of One Campaign Accomplishes Its Mission
During the early to mid 1990s, the U.S. Army had little trouble attracting enough young men to enlist for military service. The collapse of the Soviet Union had all but ended, and the cold war and military warfare was becoming more high tech, which meant that fewer soldiers were needed. Thus, the Army was downsized by 40 percent, making it easy to reach modest recruitment goals. Recruitment advertising used the Be All That You Can Be tagline and relied primarily on expensive television...
Many Marketers Are Now Using New Simulated Marketing Technologies Such As Frito-lay S Online Virtual Convenience Store
Discuss two additional product issues socially responsible product decisions and international product and services marketing. Author I New products are the Comment lifeblood of a company. As old products mature and fade away, companies must develop new ones to take their place. For example, only seven years after it unveiled its first Pod, half of Apple's revenues come from iPods and Tunes. The development of original products, product improvements, product modifications, and new brands...
Product or Brand Management Organization
Companies producing a variety of products and brands often establish a product (or brand-) management organization. The product-management organization does not replace the functional management organization but rather serves as another layer of management. A product manager supervises product category managers, who in turn supervise specific product and brand managers. A product-management organization makes sense if the company's products are quite different, or if the sheer number of...
Channel Organization
Conventional distribution channel A channel consisting of one or mure independent producers, wholesale r,s and retailers, each a separate business seeking tit maximize its men profits even at the expense of profit for the system an a whole. vertical marketing system VMS A distributiim channel structure i which producers, wholesalers and retailers act as a unified system. One channel member owns the others, has contracts wich them, or has so much power that they alt co-operate. Historically,...
Viagogo As A New Intermediary
Viagogo Seizing The Resale Opportunity Eric Baker, the co-creator of online ticket reseller StubHub Inc., effectively declared war on himself when he launched an online ticket reselling business, viagogo. It is a British-based secondary ticket sales service that offers sporting and entertainment tickets. This was in August 2006, and Baker was at that time still a 10 percent owner of StubHub. He had co-founded the business in 2000 under the original name of Liquid Seats. In 2000, Baker and his...
Sales Promotion Has an Interesting History as Well
Advertising has a long and fascinating history and has had a major impact, both good and bad, on our culture. Advertising has entertained, moved, and motivated consumers for more than a century, and many of the images created by advertisers have become cultural icons Ronald McDonald, the Marlboro Man, Tony the Tiger, and the Energizer Bunny, to name just a few. Much has been written about the history of advertising and how it reflects society and its whole range of activities. However, sales...
How to Become a Digital Marketer & Find Freelance Digital Marketing Jobs
Have you ever wondered what it would be like to be your own boss In this article, we will tell you how to become a freelance digital marketer and start living the live you want. A growing number of businesses are looking to fill remote and freelance digital marketing jobs. It's a movement that just makes sense for both employers and workers.
The Personal Selling Process
Selling process The steps that the salesperson follows when selling, which include prospecting uiul qualifying, preapprouch, approach, pre sentatkm and demonstration, handling objections, closing a nd follow-up. The step in the selling process in which the salesperson identifies qualified potential customers. Companies spend a huge amount of money on seminars, books, cassettes and other materials to teach salespeople the 'art' of selling. Millions of books on selling are purchased every year,...
How Disney Princesses Became a Multi Billion Dollar Brand
Oh boy A new customer Mickey MouseLet's be honest, there probably hasn't been one person in the world that hasn't heard of Disney. Good ol' Walt knew what he was doing when he made Mickey Mouse whistle on a steam boat and squeak his first words. A voice that I love to impersonate. Who Doesn't Know at Least One Disney Princess But I think what Walt probably never dreamed of is that Snow White and the Seven Dwarfs would be the beginning of the Disney Princess brand.
The Information Technology Boom
The explosive growth in computer, telecommunications and information technology has had a major impact on the way companies bring value to their customers. The technology boom has created exciting new ways to learn about and track customers, create products and services tailored Co meet customer needs, distribute products more efficiently and effectively, and communicate with customers in large groups or one-to-one. For example, through videoconferencing, marketing researchers at a company's...
Combining Personal Selling and Public Relations
The job descriptions presented earlier demonstrate that personal selling involves much more than just selling products and or services. The personal selling agent is often the firm's best source of public relations. In their day-to-day duties, salespeople represent the firm and its products. Their personalities, servicing of the account, cooperation, and empathy not only influence sales potential but also reflect on the organizations they represent. The salesperson may also be used directly in...
Podcasts and Vodcasts
Podcasting and vodcasting are the latest on-the-go, on-demand technologies. The name podcast derives from Apple's now-everywhere iPod. AWith podcasting, consumers can download audio files (podcasts) or video files (vodcasts) via the Internet to an iPod or other handheld device and then listen to or view them whenever and wherever they wish. They can search for podcast topics through sites such as iTunes or through podcast networks such as PodTrac, Podbridge, or PodShow. These days, you can...
The Perpetual Debate Creative versus Hard Sell Advertising
For decades there has been a perpetual battle over the role of advertising in the marketing process. The war for the soul of advertising has been endlessly fought between those who believe ads should move people and those who just want to move product. On one side are the suits or rationalists, who argue that advertising must sell the product or service and that the more selling points or information in the ad, the better its chance of moving the consumer to purchase. On the other side are the...
Celebrities Sell Out But Only in Japan
Many American celebrities make huge sums of money endorsing products and serving as advertising spokes-people. Other big stars won't appear in ads because they don't want fans to think they've sold out. But many celebrities who resist the temptation to cash in on their fame in the United States are only too happy to appear in ads in foreign countries. And nowhere are ads starring American celebrities more prevalent than in Japan. Even the rich and famous have trouble saying no to Japanese...
Internet Intranet Extranet
Evolution of technologies and communications approaches which have grown in importance since 2004-5. The main characteristics of Web 2.0 are that it typically involves Web services or interactive applications hosted on the web such as Flickr www.flickr.com . Google Maps http maps.aooale.com or blogging services such as Blogger.com or Typepad www.tvpepad.com Supporting participation - many of the applications are based on altruistic principles of community participation Encouraging creation of...
Combining Personal Selling and Direct Marketing
Companies have found that integrating direct marketing, specifically telemarketing, into their field sales operations makes their sales efforts more effective. The cost of a sales call and the cost associated with closing the sale are already very high and on the increase. Many marketers have reduced these costs by combining telemarketing and sales efforts (a typical telesales call costs about 11 cents for each 1 in revenue generated).17 A number of companies now offer consulting services to...
Company Forces Employee to Delete LinkedIn Profile
I received a disturbing email from a friend of mine. I have changed the message and obscured any personal or employer reference for obvious reasons. Due to the recent FINRA (the Financial Industry Regulatory Authority Inc) ruling (see below) I will have to take down my LinkedIn profile. The finance industry is so far behind the curve on social media communications it may be a while before my profile is back.
The Need for Integrated Marketing Communications
The shift toward a richer mix of media and communication approaches poses a problem for marketers. Consumers today are bombarded by commercial messages from a broad range of sources. But consumers don't distinguish between message sources the way marketers do. In the consumer's mind, messages from different media and promotional approaches all become part of a single message about the company. Conflicting messages from these different sources can result in confused company images, brand...
Convert a Facebook Profile to a Business Page without Losing Friends
Why Should I Convert my Profile to a Business Page From Facebook's Help Pages Since profiles are for meant individual people, they aren't suited to meet your business needs. Pages offer more robust features for organizations, businesses, brands, and public figures, which you can learn more about here. Further, maintaining a profile for anything other than an individual person is a violation of Facebook's Statement of Rights and Responsibilities.
Understanding the Difference Between Company Name and Trademark
Since trademarks are inherently associated with brand identity and brand value, it is not surprising that a lot of people, laymen and businessmen included, think it is the same as a business name. Also interchangeably known as trade names', business names have often been misunderstood as granting complete legal protection to all trade-related aspects of the company, including the said business name and or logo, sign, symbol or any other feature the company might be using as a trademark to sell...
How to Increase Pinterest Followers - Infographic
They are easy to consume and digest. They also get the most social shares. Pinterest is a social media site completely dedicated to visual content and it is also the fastest growing social site. Why Visual Content Rocks According to Neil Patel It's because the human brain processes visual data 60,000 times faster than plain text. In addition, 65 of users are visual learners. Also, 90 of information transmitted to the human brain is visual.
Marketing Intelligence
Marketing intelligence is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketplace. The goal of marketing intelligence is to improve strategic decision making by understanding the consumer environment, assessing and tracking competitors' actions, and providing early warnings of opportunities and threats. Marketing intelligence gathering has grown dramatically as more and more companies are now busily eavesdropping...
Inktomi MSN Search AOL Search Hotbot
Inktomi is a search engine that does not offer its search services through its own site, but through Partner sites - prominent ones being MSN Search, AOL Search, HotBot and others. Inktomi, through its crawler, creates three different indexes. Best of the Web index has around 110 million pages that it indexes on the web and considers high in link analysis. The next set of around 390 million pages is indexed as Rest of the Web, considered as lower in link analysis. The third index is of paid...
The Worlds Top Ten Brands
Companies around the v HlI invest large amounts of money each year to create awareness and preference for their top brands. Powerful brand names command strong consumer loyalty and provide competitive advantage in the marketplace. What are the world's most powerful brands Interbrand, a consultancy that specializes in branding, released a new piece of research in 1996, naming McDonald's as the world's leading brand. Interbrand drew up an initial list of some 1,200 brands by polling staff in its...
How Many Truly Global Brands Are There
In his classic 1983 book The Marketing Imagination, Harvard marketing professor Theodore Levitt argued that the world was becoming a Itejctihitf Lhe Biilmn tJolliir Atari Itejctihitf Lhe Biilmn tJolliir Atari common marketplace where people have the same basic needs, wants, desires, and tastes no matter where they live. Levitt called on marketers to develop global marketing strategies and true global brands that could be sold under one name around the globe. Many multinational companies heeded...
Standardization or Adaptation for International Markets
Atone extreme are companies that use a standardized marketing mix worldwide. Proponents highlight several reasons for global standardization. An international marketing strategy for using basically the same product, advertising, distribution channels and other elements of the marketing mix in all the company's iniernacujnal markets. Tins Italian execution of a Pirelli campaign allows the global application of many of today's ads. HOMOGENEOUS NEEDS AND PREFERENCES. The presence of homogeneous...
The Importance of Cross Border eCommerce for India
Cross Border eCommerce has taken the world by storm and it is mostly driven by sellers from China, USA and Europe. There is a good reason why sellers from these countries have identified the opportunity presented by this cross border online trade faster than sellers and manufacturers from, say, India. These countries in themselves are aggressive global leaders in manufacturing, innovation and have global ambitions to start with.
The Ten Commandments Of Global Branding
Far many companies, global landing has beeal both a Messing and a curse. A y oba brand,ng program can faner marketing costs, realize greater economies of scafe in production, and ptoflde a long-term Source ol growth. If not designed and implemented properly, it may ignore important tl iterances in consumer tshavior and or the competitive environment in the individual couniries These suggestions can help a company retain many of Ihe attvanlages ol global branding vrtiile minimis ng the potential...
Back To The Bowl
Where does a company turn when it wants to make a big ad splash For Coca-Cola, its thoughts turned to the marquee of all advertising events the Super Bowl. The company had certainly had success with the ad venue before. But scoring big with a Super Bowl ad isn't guaranteed. In fact, many cynics view the ad venue as a waste of money. One team of researchers found that average brand recall one week after the 2008 Super Bowl was an unimpressive 7 percent. Recall for specific commercials and the...
Create an Awesome Brand and Successfully Market to Millennials
Millennials are the most educated, open minded and dynamic demographic that exists. They are independent and have started making their purchasing decisions. For a marketer, they are the most lucrative set of audiences for marketing any product or service. However, the set of characteristics and traits they possess make them the unique people to market or sell. One can't use the same marketing strategies to lure them into a brand or acquire, convert and retain them for long.
Little Social Media Education Goes A Long Way
Jeremiah Owyang has another research report out about the readiness and abilities of companies to deal with social media crisis. The full report and slides are embedded below. I won't go through an extensive review of the report because you will find a lot of commentary on the report at all the usual places but here was my key takeaway Educate and empower your employees or else The Altimeter report shows that companies that have strong social media policies in place, an internal staff,...
McDonalds Deals with Public Relations Problems in France
One of the challenges facing multinational companies operating in foreign markets is that various groups such as consumers, government, the media,and other relevant publics may feel threatened by their presence. Resentment and concerns over their presence in a country can make public relations problems and crisis situations even more difficult for large multinational companies, as McDonald's has learned from problems it has encountered in France over the past few years. McDonald's opened its...
Consumer Promotion Tools
The main consumer promotion tools include samples, coupons, cash refunds, price packs, premiums, advertising specialities, patronage rewards, point-of-purchase displays and demonstrations, and contests, sweepstakes and games. Samples are offers of a trial amount of a product. Some samples are free for others, the company charges a small amount to offset its cost. The sample might be delivered door to door, sent by mail, handed out in a store, attached to another product or featured in an ad....
[Infographic] Netflix Vs Amazon Prime
SHARE THIS IMAGE ON YOUR SITEStreaming movies and TV shows is the new norm, we're able to access nearlyany film or series we want anywhere there is internet access. As this pastime has grown in popularity so too have number of content providers there are to choose from. The two front-runners in this industry are Netflix and Amazon Prime Instant, formerly LoveFilm Instant. At first glance these two services look extremely similar this makes choosing between them very difficult.
The History of Mobile Browsers
One of the hardest parts of working on the mobile Web is working with the mobile browsers, but each year the situation improves. To understand the evolution of mobile Web browsers, you only have to look to the evolution of traditional browsers. The two technologies are similar and thus follow a familiar path in terms of milestones and innovations. Mobile browsers became a reality about 10 years after traditional browsers did, so all the major benchmarks in the evolution of mobile browsing occur...
Process Of Setting Objectives
At the very beginning of the process of setting objectives, an SBU should attempt to take an inventory of objectives as they are currently understood. For example, the SBU head and senior executives may state the current objectives of the SBU and the type of SBU they want it to be in the future. Various executives perceive current objectives differently and, of course, they will have varying ambitions for the SBU's future. It will take several top-level meetings and a good deal of effort on the...
Does It Really Matter What We Spend on Advertising
As you can imagine, marketers have probably always wondered whether their advertising dol lars have an impact. This is particularly true now, as advertising budgets are being slashed in virtually every industry due to the downturn in the U.S. economy. Simply put, marketers want to know whether it is worth advertising their brand, and how much they should be spending if it is. There are some out there who think that the amount spent on media has little or no impact at least as it relates to...
Concept Of Planning
Throughout human history, people have tried to achieve specific purposes, and in this effort some sort of planning has always found a place. In modern times, the former Soviet Union was the first nation to devise an economic plan for growth and development. After World War II, national economic planning became a popular activity, particularly among developing countries, with the goal of systematic and organized action designed to achieve stated objectives within a given period. Among market...
Decision 1 Market and product development strategies
In Chapter 1, we introduced the Ansoff matrix as a useful analytic tool for assessing online strategies for manufacturers and retailers. This tool is also fundamental to marketing planning and it should be the first decision point since it can help companies think about how online channels can support their marketing objectives, but also suggest innovative use of these channels to deliver new products and more markets the boxes help stimulate 'out-of-box' thinking which is often missing with...
Characteristics of Objectives
A second major contribution of DAGMAR to the advertising planning process was its definition of what constitutes a good objective. Colley argued that advertising objectives should be stated in terms of concrete and measurable communications tasks, specify a target audience, indicate a benchmark starting point and the degree of change sought, and specify a time period for accomplishing the objective s . Concrete, Measurable Tasks The communications task specified in the objective should be a...
Models of online buyer behaviour
Standard models of consumer buyer behaviour have been developed by Bettman 1979 and Booms and Bitner 1981 . In these models, consumers process marketing stimuli such as the 4 Ps and environmental stimuli according to their personal characteristics such as their culture, social group and personal and psychological make-up. Together these characteristics will affect the consumers' response to marketing messages. For the Internet marketer, a review of the factors influencing behaviour is...
Introduction to marketing research Scientific research approach and Problem definition
The chapter will provide understanding towards the nature and scope of marketing research and the scientific process involved. It will also discuss the role of research in designing and implementing successful marketing programmes. It will explain the role of marketing research in marketing information systems and decision support systems and provide the conceptual framework of marketing research process. This chapter will also explain the process of defining a problem in marketing research and...
Understanding Behavioral Economics and its Correlation to Digital Marketing
What would make a social media user share content with his family and friends What would entice him to click an external link What type of content would be convincing enough to convert a like to an eventual sale These are some of the questions that constantly bug digital marketers. Digital marketing, a subcategory of marketing, uses digital platforms such as Short Message Service (SMS), electronic billboards, social media, and apps to promote and sell products.
Straight Rebuy For Air Asia
A business buying situation in which the buyer routinely reorders something without any modifications. A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers. A business buying situation in which the buyer purchases a product or service for the first time. Systems selling or solutions selling Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation....
Dissonance Reducing Buying Behaviour
Dissonance-reducing buying behaviour occurs when consumers are highly involved with an expensive, infrequent or risky purchase, but see little difference among brands. For example, consumers buying carpeting may face a high-involvement decision because carpeting is expensive and self-expressive. Yet buyers may consider most carpet brands in a given price range to be the same. In this case, because perceived brand differences are not large, buyers may shop around to learn what is available, but...
Consumer Markets and Consumer Buyer Behavior
In the previous chapter, you studied how marketers obtain, analyze, and use information to understand the marketplace and to assess marketing programs. In this and the next chapter, we'll continue with a closer look at the most important element of the marketplace customers. The aim of marketing is to affect how customers think and act. To affect the whats, whens, and hows of buying behavior, marketers must first understand the whys. In this chapter, we look at final consumer buying influences...
Habitual Buying Behaviour
Habitual buying behaviour occurs under conditions of low consumer involvement and little significant brand difference. For example, take salt. Consumers have little involvement in this product category - they simply go to the store and reaeh for a brand. If they keep reaching for the same brand, it is out of habit rather than strong brand loyalty. Consumers appear to have low involvement with most low-cost, frequently purchased products. Consumers do not search extensively for information about...
The Societal Marketing Concept
The societal marketing coneept holds that the organization should determine the needs, wants and interests of target markets. It should then deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer's and the society's well-being. The societal marketing concept is the newest of the five marketing management philosophies.
Models of Consumer Behaviour
Tlie buying behaviour of final consumers -individuals and households who buy goods and services for personal consumption. eon sumo r market All the individuals and households who buy or acquire gvods and services fiir personal consumption. In earlier times, marketers could understand consumers well through the daily experience of selling to them. But as firms and markets have grown in size, many marketing decision makers have lost direct contact with their customers and must now turn to...
Factors In Appraisal Corporate Publics
Thus, the first consideration in the strategic process is to recognize the individuals and groups who have an interest in the fate of the corporation and the extent and nature of their expectations. The following groups generally constitute the interest-holders in business organizations 5. Banking community and other lenders 7. Community in which the company does business For the healthy growth of the organization, all eight groups must be served adequately. Of all...
Maturity Stage
At some point, a product's sales growth will slow down and the product will enter a maturity stage. This maturity stage normally lasts longer than the previous stages, and it poses strong challenges to marketing management. Most products are in the maturity stage of the life cycle, and, therefore, most of marketing management deals with the mature product. The slowdown in sales growth results in many producers with many products to sell. In turn, this overcapacity leads to greater competition....
10 Ways To Reinvent Your Website Using Google Shopping Ads
Would you like to reinvent your website by launching a Google shopping ad campaign and driving lots of new customers and clients to your website Do you want to sell more products or services this year and take your operation to the next level Then you've come to the right place today. The information on this page is for advanced internet marketers and business owners who want to ensure they get the best results from their online promotional efforts.
Modes of entry
The firm has a number of choices when it is attempting to evaluate a mode of market entry. It should be remembered that there is no one method which is suitable for all firms under a particular set of circumstances. Instead there are a number of options which companies and the individuals within them have to weigh up under the pertaining market situation. Box 4,5 highlights those favoured by exporters in Canada and Latin America. 4 5 MARKcl SNlllY A LANADA LATll AM Wr.A '.,-.'1 ii ' ' i.miil'--...
Common sales forecasting techniques
Surveys of buyers' intentions Composite sales force opinions Expert opinion Test markets Time-series analysis Leading indicators Statistical demand analysis What people do What people have done anticipating what buyers are likely to do under a given set of Conditions, Very few products or servioes lend themselves to easy forecasting. Those that do generally involve a product with steady sales, or sales growth in a stable competitive situation. But most markets do not have stable total and...
All You Need to Know About Influencer Marketing for Your Brand
Who are Influencers Influencers are active bloggers or social media buffs who advocate brands & have a niche marketing approach. Why Influencer Marketing The rise of the Influencers.To survive in today's cut throat competition brands need to be updated with the latest technologies & trends. Gone are the days when consumer buying patterns were influenced by celebrity endorsements. Aware consumers today relate trust more on the reviews of common man.
Types of Buying Decision Behaviour
Consumer decision making varies with the type of buying decision. Consumer buying behaviour differs greatly for a tube of toothpaste, a tennis racket, an expensive camera and a new car. More complex decisions usually involve more buying participants and more buyer deliberation. Figure 6.5 shows types of consumer buying behaviour based on the degree of buyer involvement and the degree of differences among brands.2'1 Consumers undertake complex buying behaviour when they are highly involved in a...
Marketing Ethics
Ethics, in the broadest sense of the word, is rising to the top of the corporate agenda. Scarcely a week goes by without a leading company coming under attack, rightly or wrongly, for alleged unethical business practices, whether it is Ford removing the black faces from a sales brochure, Shell UK dumping its redundant oil platform, Brent Spar, in the North Sea, or MeVities' use of fish oil from sand eels, an endangered species and puffins' staple diet. However far from reality the accusations...
Key concepts of relationship marketing
'Consistent application of up to date knowledge of individual customers to product and service design which is communicated interactively in order to develop a continuous and long term relationship which is mutually beneficial' (Cram, 1994 , One-to-many communication between a company and potential customers, with limited tailoring of the message, The approach to Internet marketing function is based on customer behaviour within the target audience and then seeks to fulfil the needs and wants of...
Productscope Strategy
The product-scope strategy deals with the perspective of the product mix of a company i.e., the number of product lines and items in each line that the company may offer . The product-scope strategy is determined by making reference to the business unit mission. Presumably, the mission defines what sort of business it is going to be, which helps in selecting the products and services that are to become a part of the product mix. The product-scope strategy must be finalized after a careful...
Ethical issues in fashion marketing
The practice of fashion marketing is often criticized. These criticisms can be classified into two types, the micro-issues and the macro-issues. Micro-issues concern particular products and services where consumers may feel that they have not been fairly treated or that they have been misled. Most customers have bought clothing that has fallen below expectations by, for example, coming apart at the seams or shrinking in the wash. These problems may occur due to poor quality control or at worst...
14 Ways to Improve Website User Experience - Infographic
In the 90's most things on the web was text-based it's not the case today. Consumers have a lot of options in this fast-moving world. The desire to keep moving has never been more prominent whether it is traffic on the road, fast food or even websites. Getting web users to your site is hard enough as is it is even harder to keep them there. User experience directly or indirectly effects SEO rankings it certainly affects consumer buying process.
The Companys Microenvironment
Marketing management's job is to create attractive offers for target markets. However, marketing managers cannot simply focus on the target market's needs. Their success will also be affected by actors in the company's microenvironment. These actors include other company departments, suppliers, marketing intermediaries, customers, competitors and various publics see Figure 4.1 . In designing marketing plans, marketing management should take other company groups, such as top management, finance,...
Touchy Feely Research into Consumer Motivations
Box You taste nice riot harsh.' Ideal cigarette to smoker 'If I can make you relaxed and happy, that's what I am here for. I always try to please my customers.' researchers use a wide variety of non-directive and projective techniques to uncover underlying emotions and attitudes towards brands and buying situations. The techniques range from sentence completion, word association and inkblot or cartoon interpretation tests, to having consumers describe typical brand users or form daydreams and...
Customer Value Proposition Range Rover
Arrows represent relationships that must be developed and managed to create customer value and profitable customer relationships. Although we normally think of marketing as being carried on by sellers, buyers also carry on marketing. Consumers do marketing when they search for products and interact with companies and obtain information and make their purchases. In fact, today's digital technologies, from Web sites and blogs to cell phones and other wireless devices, have empowered consumers and...
Modifying Channel Arrangements
A producer must periodically review And modify its channel arrangements. Modification becomes neeessarv when the distribution channel is not working as planned consumer buying patterns change, the market expands, new competition arises, innovative distribution channels emerge, and the product moves into later stages in the product life cycle. Consider Apple. To combat Its lowly 3.4 percent share d1 the U.S. personal computer market. Apple has opened more man 75 retail locations since 2001. The...
The fashion marketing concept
There is another way to view the relationship between marketing and design, and this is termed the fashion marketing concept. That good fashion design only requires sufficient promotion to succeed is a view Figure 1.3 The fashion marketing concept. applicable to a very limited number of businesses - usually those producing expensive garments for an elite market. The alternative view of fashion design as a function of marketing research fails to recognize either that many people do not know what...
Identifyingthe Target Audience
A marketing communicator starts with a clear target audience in mind. The audience may be potential buyers or cxirrent users, those who make the buying decision or those who influence it. The audience may be individuals, groups, special publics or die general public. The target audience will heavily affect the communicator's decisions on 'what will be said, how it will be said, when it will he said, where it will be said and who will say it. buyer-readiness stages The stages that consumers...
Teams as Brands A Review of the Sports Licensing Concept
Rick Burton Australian National Basketball League Whereas a great deal has been recorded on sponsorship's definition and the ways in which sponsorship or team identification is thought to work, the literature is less comprehensive when acknowledging or discussing the sports marketing activity known as licensing. Irwin, Sutton and McCarthy (2002) suggested licensing programs, as engineered by teams or leagues, exist for the purpose of supporting three fundamental benefits (a) promotional...
Scope of Automobile Classifieds in India: The Story of Autoportal
Image Source Motorward Autoportal.com launched as a vertical online classifieds portal in automobile category, is chasing the expected growth in online advertising in India. It was initially launched in Ukraine by Anton Rublevskyy and expanded to India to seek further growth. iamWire got in touch with Autoportal India's spokesperson, Sagar Das, to get an insight into where the company and the market are headed.
Funding Wire: Mobikon, Curofy, Schoolguru, Scandid, Zuper Meal and Cube26
Mobikon Raises New Round of Growth Funding from Life.SREDA & Qualgro Mobikon has raised undisclosed growth funding from Life.SREDA and Qualgro Image Source Facebook Mobikon is a customer engagement and marketing platform for restaurants that was founded by Samir Khadepaun and Salil Khamkar, has raised undisclosed growth funding from Life.SREDA and Qualgro. The company will use the funds to expand in South East Asia.
Shopping Wish launches Scandid, an app for price comparison through barcode scanning
ShoppingWish, an online price comparison site has launched a fast and convenient barcode scanning based price comparison app for India, Scandid. It is useful for both online and offline shoppers. While shopping in the conventional brick and mortar retail stores, it is a common practice in the western countries to check up the price of a product online on their phones, using a simple barcode scanner app. Now, that is possible for the people in India too.
The Promotional Mix The Tools for IMC p
The coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea.25 While implicit communication occurs through the various elements of the marketing mix, most of an organization's communications with the marketplace take place as part of a carefully planned and controlled promotional program. The basic tools used to accomplish an organization's communication objectives are often referred to as the...
Marketing Promotional Program Communications Programs
The objective and task method of budget setting uses a buildup approach consisting of three steps: (1) defining the communications objectives to be accomplished, (2) determining the specific strategies and tasks needed to attain them, and (3) estimating the costs associated with performance of these strategies and tasks. The total budget is based on the accumulation of these costs.
Objectives of Consumer Oriented Sales Promotion
As the use of sales promotion techniques continues to increase, companies must consider what they hope to accomplish through their consumer promotions and how they interact with other promotional activities such as advertising, direct marketing, and personal selling. When marketers implement sales promotion programs without considering their long-term cumulative effect on the brand's image and position in the marketplace, they often do little more than create short-term spikes in the sales...
Set Tentative Marketing Communication Budget
Monitor, evaluate, and control integrated marketing communications program Monitor, evaluate, and control integrated marketing communications program Examine overall marketing plan and objectives Role of advertising and promotion Competitive analysis Assess environmental influences Analysis of Promotional Program Situation organization Firm's ability to implement promotional program Agency evaluation and selection Review of previous program results External analysis Consumer behavior analysis...
How Companies Integrate Personal Selling into the IMC Program
For many companies, personal selling has been the primary focus for promoting their goods and services. Other IMC program elements have assumed more of a support role and, in many instances, have not been used effectively by the marketing managers or the sales force. For many companies, all of this is changing as reflected in the following examples Xerox testing ads and sales promotions. Barbara Basney,director of marketing communications at Xerox's Office Printing Business, is responsible for...
Advertising To Business And Professional Markets
Advertising targeted at individuals who buy or influence the purchase of industrial goods or services for their companies. Industrial goods are products that either become a physical part of another product raw material or component parts , are used in manufacturing other goods machinery , or are used to help a company conduct its business e.g., office supplies, computers . Business services such as insurance, travel services, and health care are also included in this category. Advertising...
What Do Ab Rockers Ginsu Knives Mercedes and Kitchen Appliances Have in Common
If you don't know the answer to the above question, perhaps a few more hints will help. What if we added Monsters, Excite Home, and the Indy Races to the list That's right, all of the above are sponsors of infomercials an advertising form that has long been considered appropriate only for Ronco Vegematics, Whopper Choppers, and Dione Warwick's Psychic Friends. The infomercial, or as those in the industry like to refer to it long-form advertisement, is a 30- to 60-minute television segment...
Look Out Sony The Koreans Are Coming
Have you ever heard of Samsung Probably not, unless you own a microwave oven the com pany's preeminent U.S. brand presence . But then again, not too many people had heard of Sony back in the early 1960s. Like Sony, which was initially known for its clock radios and small black-and-white TVs and was a secondary player relative to Motorola, Philips, and Zenith, Samsung has been known in the United States for low-end products, such as VCRs, TVs, and microwave ovens. Now the company wants to be...
Reasons Not to Measure Effectiveness
Companies give a number of reasons for not measuring the effectiveness of advertising and promotions strategies 1. Cost. Perhaps the most commonly cited reason for not testing particularly among smaller firms is the expense. Good research can be expensive, in terms of both time and money. Many managers decide that time is critical and they must implement the program while the opportunity is available. Many believe the monies spent on research could be better spent on improved production of the...
Intel Inside The Coop Program That Changed the Computer Industry
If you were to ask most owners of personal computers what is inside their PCs, chances are they would respond by saying, an Intel. And there's a good reason why. Over the past decade consumers have been exposed to hundreds of millions of dollars' worth of ads for personal computers each year that carry the Intel Inside logo. The logo has become ubiquitous in PC ads as a result of a landmark cooperative advertising program that is lauded as the most powerful ever and the definitive model for...
Does the Success of Public Relations Mean the Death of Advertising
Just about a decade ago, some people involved in the public relations PR industry were asking marketers to stay out of their domain. These tra ditional PR people were arguing that marketing and public relations always have been separate communications functions and that they should forever stay that way. My how things have changed Recently, two very well known marketing consultants released a book titled The Fall of Advertising and the Rise of PR. The gist of the book is that while advertising...
Fiona Morrisson
Director, Corporate Communications JetBlue Airways My career-path, especially the first ten years of it, has been one that text books never recommend, guidance counselors are paid to discourage, and parents fear the most. I grew up in a small country town in Australia where it wasn't a given that everyone would graduate from high school and go on to university. I left school after grade ten and spent the next eight years of my working life in jobs that provided me with an extremely useful work...
Advertising
Advertising is defined as any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.26 The paid aspect of this definition reflects the fact that the space or time for an advertising message generally must be bought. An occasional exception to this is the public service announcement (PSA), whose advertising space or time is donated by the media. The nonpersonal component means that advertising involves mass media (e.g., TV, radio,...
The Growth of Sales Promotion
While sales promotion has been part of the marketing process for a long time, its role and importance in a company's integrated marketing communications program have increased dramatically over the past decade. Consumer sales promotion-related spending increased from 56 billion in 1991 to nearly 100 billion in 2001.4 Marketers also spend an estimated 150 billion each year on promotions targeted at retailers and wholesalers. Consumer packaged goods firms continue to be the core users of sales...
The Nature of Personal Selling
To integrate the personal selling effort into the overall promotional program, we must understand the nature of this tool. Let us look at how personal selling has evolved over the years and then examine some of its characteristics. The personal selling task encompasses a variety of responsibilities some of which we discuss in the next section . Like other aspects of the promotional mix, these responsibilities are constantly changing. As noted by Thomas Wotruba, the personal selling area is...
Review of the Marketing Plan
The first step in the IMC planning process is to review the marketing plan and objectives. Before developing a promotional plan, marketers must understand where the company (or the brand) has been, its current position in the market, where it intends to go, and how it plans to get there. Most of this information should be contained in the marketing plan, a written document that describes the overall marketing strategy and programs developed for an organization, a particular product line, or a...