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Encyclopedia > Marketing
Marketing
Key concepts

Product / Pricing / Promotion
Distribution / Service / Retail
Brand management
Marketing effectiveness
Market research
Marketing strategy
Marketing management
Market dominance
This article does not cite any references or sources. ... Wikibooks has more about this subject: Marketing Scale model of a Wheaties cereal box at a pep rally Promotion is one of the four key aspects of the marketing mix. ... Wikibooks [[wikibooks:|]] has more about this subject: Marketing Distribution (or placement) is one of the four aspects of marketing. ... This article is about a term used in economics. ... Drawing of a self-service store. ... The discipline of brand management was started at Procter & Gamble PLC as a result of a famous memo by Neil H. McElroy. ... Marketing Effectiveness is the function of improving how marketers go to market with the goal of optimizing their marketing spend to achieve even better results for both the short-term and long-term. ... Market research is the process of systematic gathering, recording and analyzing of data about customers, competitors and the market. ... A marketing strategy[1] [2] is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. ... Wikibooks has more about this subject: Marketing Marketing management is a business discipline focused on the practical application of marketing techniques and the management of a firms marketing resources and activities. ... Market dominance is a measure of the strength of a brand, product, service, or firm, relative to competitive offerings. ...

Promotional content

Advertising / Branding
Direct marketing / Personal Sales
Product placement / Public relations
Publicity / Sales promotion
Underwriting // Advert redirects here. ... For other uses, see Brand (disambiguation). ... Wikibooks has more about this subject: Marketing Direct marketing is a discipline within marketing that involves contacting individual customers (business-to-business or consumer) directly and obtaining their responses and transactions for the purpose of developing and prolonging mutually profitable customer relationships. ... Sales are the activities involved in providing products or services in return for money or other compensation. ... Wikibooks [[wikibooks:|]] has more about this subject: Marketing Product placement advertisements are promotional ads placed by marketers using real commercial products and services in media, where the presence of a particular brand is the result of an economic exchange. ... For the Arrested Development episode, see Public Relations (Arrested Development episode). ... Wikibooks has more about this subject: Marketing Look up publicity in Wiktionary, the free dictionary. ... Wikibooks has more about this subject: Marketing Sales promotion is one of the four aspects of promotional mix. ... An underwriting spot is an announcement made on public broadcasting outlets, especially in the United States, in exchange for funding. ...

Promotional media

Printing / Publication / Broadcasting
Out-of-home / Internet marketing
Point of sale / Novelty items
Digital marketing / In-game
Word of mouth
For other uses, see Print. ... Look up publication in Wiktionary, the free dictionary. ... Broadcasting is the distribution of audio and/or video signals which transmit programs to an audience. ... Out-of-home advertising (also referred to as OOH) is essentially all type of advertising that reaches the consumer while he or she is outside the home. ... Wikibooks [[wikibooks:|]] has more about this subject: Marketing Internet marketing, also referred to as online marketing, Internet advertising, eMarketing (or e-Marketing), is the marketing of products or services over the Internet. ... This article or section does not cite its references or sources. ... Promotional items or promotional products refers to articles of merchandise that are used in marketing and communication programs. ... Digital Marketing refers to the practice of marketing services, products and other items using digital tools and techniques that have appeared relatively recently since the rise of the Internet as a mainstream communications platform. ... In-game advertising (IGA) refers to the use of computer and video games as a medium in which to deliver advertising. ... Word-of-mouth marketing is a term used in the marketing and advertising industry to describe activities that companies undertake to generate personal recommendations as well as referrals for brand names, products and services. ...

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Marketing is an ongoing process of planning and executing the marketing mix (Product, Price, Place, Promotion) for products, services or ideas to create exchange between individuals and organizations. Marketing is a Canadian business magazine about marketing, advertising and media. ...


Marketing tends to be seen as a creative industry, which includes advertising, distribution and selling. It is also concerned with anticipating the customers' future needs and wants, which are often discovered through market research. // Advert redirects here. ... Look up distribution in Wiktionary, the free dictionary. ... Sales are the activities involved in providing products or services in return for money or other compensation. ...


Essentially, marketing is the process of creating or directing an organization to be successful in selling a product or service that people not only desire, but are willing to buy.


Therefore good marketing must be able to create a "proposition" or set of benefits for the end customer that delivers value through products or services.


Its specialist areas include:

Contents

// Advert redirects here. ... Database marketing is a form of direct marketing using databases of customers or potential customers to generate personalized communications in order to promote a product or service for marketing purposes. ... Wikibooks has more about this subject: Marketing Direct marketing is a discipline within marketing that involves contacting individual customers (business-to-business or consumer) directly and obtaining their responses and transactions for the purpose of developing and prolonging mutually profitable customer relationships. ... // The Oxford University Press defines global marketing as “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives. ... Wikibooks [[wikibooks:|]] has more about this subject: Marketing Internet marketing, also referred to as online marketing, Internet advertising, eMarketing (or e-Marketing), is the marketing of products or services over the Internet. ... Industrial marketing is the marketing of goods and services from one business to another. ... Market research is the process of systematic gathering, recording and analyzing of data about customers, competitors and the market. ... For the Arrested Development episode, see Public Relations (Arrested Development episode). ... Retail redirects here. ... Search engine marketing, or SEM, is a form of Internet marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs). ... A marketing strategy[1] [2] is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. ... A marketing plan is a written document that details the necessary actions to achieve one or more marketing objectives. ... Strategic management is the art and science of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its objectives[1]. It is the process of specifying the organizations objectives, developing policies and plans to achieve these objectives, and allocating resources to implement the policies... Experiential marketing attempts to connect consumers with brands in personally relevant and memorable ways. ...

Introduction

A market-focused, or customer-focused, organization first determines what its potential customers desire, and then builds the product or service. Marketing theory and practice is justified in the belief that customers use a product or service because they have a need, or because it provides a perceived benefit. Customers are waiting in front of a famous fashion shop for its grand opening in Hong Kong. ...


Two major factors of marketing are the recruitment of new customers (acquisition) and the retention and expansion of relationships with existing customers (base management). Once a marketer has converted the prospective buyer, base management marketing takes over. The process for base management shifts the marketer to building a relationship, nurturing the links, enhancing the benefits that sold the buyer in the first place, and improving the product/service continuously to protect the business from competitive encroachments. A marketeer or marketer is someone whose job it is to present a good or service to the market in an attractive way so that others will be tempted to buy it. ...


For a marketing plan to be successful, the mix of the four "Ps" must reflect the wants and desires of the consumers or Shoppers in the target market. Trying to convince a market segment to buy something they don't want is extremely expensive and seldom successful. Marketers depend on insights from marketing research, both formal and informal, to determine what consumers want and what they are willing to pay for. Marketers hope that this process will give them a sustainable competitive advantage. Marketing management is the practical application of this process. The offer is also an important addition to the 4P's theory. A marketing plan is a written document that details the necessary actions to achieve one or more marketing objectives. ... The marketing mix is generally accepted as the use and specification of the 4 Ps describing the strategic position of a product in the marketplace. ... Consumers refers to individuals or households that use goods and services generated within the economy. ... Target market may be defined as a market which an organisation sets its views on, either because it is witnessing an increasing demand for the product produced by the organisation, either because it represents a blue ocean for the organisation to exploit before its competitors get there, so as to... A Market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. ... Consumer research redirects here. ... Companies that compete by selling similar products (or even substitutes) to the same group of customers constitute an industry. ... Wikibooks has more about this subject: Marketing Marketing management is a business discipline focused on the practical application of marketing techniques and the management of a firms marketing resources and activities. ...


Within most organizations, the activities encompassed by the marketing function are led by a Vice President or Director of Marketing. A growing number of organizations, especially large US companies, have a Chief Marketing Officer position, reporting to the Chief Executive Officer. The Chief Marketing Officer, or CMO, is a job title for an executive responsible for various marketing-related activities within an organization. ... Chief Executive redirects here. ...


The American Marketing Association (AMA) states, "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."[1] The American Marketing Association is a professional association for marketers. ...


Marketing methods are informed by many of the social sciences, particularly psychology, sociology, and economics. Anthropology is also a small, but growing influence. Market research underpins these activities. Through advertising, it is also related to many of the creative arts. Marketing is a wide and heavily interconnected subject with extensive publications. It is also an area of activity infamous for re-inventing itself and its vocabulary according to the times and the culture. The social sciences are groups of academic disciplines that study the human aspects of the world. ... Psychological science redirects here. ... Sociology (from Latin: socius, companion; and the suffix -ology, the study of, from Greek λόγος, lógos, knowledge [1]) is the scientific or systematic study of society, including patterns of social relationships, social interaction, and culture[2]. Areas studied in sociology can range from the analysis of brief contacts between anonymous... Face-to-face trading interactions on the New York Stock Exchange trading floor. ... This article is about the social science. ... // Advert redirects here. ... For other uses of Creativity, see Creativity (disambiguation). ...


Concept of Marketing

"Marketing" is an instructive business domain that serves to inform and educate target markets about the value and competitive advantage of a company and its products. “Value” is worth derived by the customer from owning and using the product. “Competitive Advantage” is a depiction that the company or its products are each doing something better than their competition in a way that could benefit the customer. Value of a product within the context of marketing means the relationship between the consumers expectations of product quality to the actual amount paid for it. ... Competitive advantage (CA) is a position that a firm occupies in its competitive landscape. ...


Marketing is focused on the task of conveying pertinent company and product related information to specific customers, and there are a multitude of decisions (strategies) to be made within the marketing domain regarding what information to deliver, how much information to deliver, to whom to deliver, how to deliver, to deliver, and where to deliver. Once the decisions are made, there are numerous ways (tactics) and processes that could be employed in support of the selected strategies.


The goal of marketing is to build and maintain a preference for a company and its products within the target markets. The goal of any business is to build mutually profitable and sustainable relationships with its customers. While all business domains are responsible for accomplishing this goal, the marketing domain bears a significant share of the responsibility.


Within the larger scope of its definition, marketing is performed through the actions of three coordinated disciplines named: “Product Marketing”, “Corporate Marketing”, and “Marketing Communications”. [2] // Product Marketing deals with the first of the 4Ps of marketing, which are Product, Pricing, Placement, and Promotion. ... Marketing communications (or marcom) are messages and related media used to communicate with a market. ...


Two levels of marketing

Strategic marketing: attempts to determine how an organization competes against its competitors in a market place. In particular, it aims at generating a competitive advantage relative to its competitors.


Operational marketing: executes marketing functions to attract and keep customers and to maximize the value derived for them, as well as to satisfy the customer with prompt services and meeting the customer expectations. Operational Marketing includes the determination of the porter's five forces


Four Ps

Main article: Marketing mix

In the early 1960s, Professor Neil Borden at Harvard Business School identified a number of company performance actions that can influence the consumer decision to purchase goods or services. Borden suggested that all those actions of the company represented a “Marketing Mix”. Professor E. Jerome McCarthy, also at the Harvard Business School in the early 1960s, suggested that the Marketing Mix contained 4 elements: product, price, place and promotion. The marketing mix is generally accepted as the use and specification of the 4 Ps describing the strategic position of a product in the marketplace. ... Harvard Business School, officially named the Harvard Business School: George F. Baker Foundation, and also known as HBS, is one of the graduate schools of Harvard University. ...


In popular usage, "marketing" is the promotion of products, especially advertising and branding. However, in professional usage the term has a wider meaning which recognizes that marketing is customer-centered. Products are often developed to meet the desires of groups of customers or even, in some cases, for specific customers. E. Jerome McCarthy divided marketing into four general sets of activities. His typology has become so universally recognized that his four activity sets, the Four Ps, have passed into the language. // Advert redirects here. ... For other uses, see Brand (disambiguation). ... E. Jerome McCarthy is a professor at Michigan State University and an internationally known marketing consultant. ...


The four Ps are:

  • Product: The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user's needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees, and support.
  • Pricing: This refers to the process of setting a price for a product, including discounts. The price need not be monetary - it can simply be what is exchanged for the product or services, e.g. time, energy, psychology or attention.
  • Promotion: This includes advertising, sales promotion, publicity, and personal selling, branding and refers to the various methods of promoting the product, brand, or company.
  • Placement (or distribution): refers to how the product gets to the customer; for example, point of sale placement or retailing. This fourth P has also sometimes been called Place, referring to the channel by which a product or services is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc.

These four elements are often referred to as the marketing mix,[3] which a marketer can use to craft a marketing plan. The four Ps model is most useful when marketing low value consumer products. Industrial products, services, high value consumer products require adjustments to this model. Services marketing must account for the unique nature of services. Industrial or B2B marketing must account for the long term contractual agreements that are typical in supply chain transactions. Relationship marketing attempts to do this by looking at marketing from a long term relationship perspective rather than individual transactions. Economics and commerce define an end-user as the person who uses a product. ... This article does not cite any references or sources. ... For the surname, see Price (surname). ... Wikibooks has more about this subject: Marketing Scale model of a Wheaties cereal box at a pep rally Promotion is one of the four key aspects of the marketing mix. ... // Advert redirects here. ... Wikibooks has more about this subject: Marketing Sales promotion is one of the four aspects of promotional mix. ... Wikibooks has more about this subject: Marketing Look up publicity in Wiktionary, the free dictionary. ... Sales are the activities involved in providing products or services in return for money or other compensation. ... Look up branding in Wiktionary, the free dictionary. ... For other uses, see Brand (disambiguation). ... Wikibooks [[wikibooks:|]] has more about this subject: Marketing Distribution (or placement) is one of the four aspects of marketing. ... A drawing of a self-service store Retailing consists of the sale of goods/merchandise for personal or household consumption either from a fixed location such as a department store or kiosk, or away from a fixed location and related subordinated services (Definition of the WTO (last page). ... The marketing mix is generally accepted as the use and specification of the 4 Ps describing the strategic position of a product in the marketplace. ... A marketing plan is a written document that details the necessary actions to achieve one or more marketing objectives. ... Services marketing is marketing based on relationship and value. ... Business-to-business (B2B) describes relations of commercial partners, without serving the end consumer. ... A supply chain, logistics network, or supply network is a coordinated system of organizations, people, activities, information and resources involved in moving a product or service in physical or virtual manner from supplier to customer. ... Relationship marketing is a form of marketing that evolved from direct response marketing in the 1960s and emerged in the 1980s, in which emphasis is placed on building longer term relationships with customers rather than on individual transactions. ...


As a counter to this, Morgan, in Riding the Waves of Change (Jossey-Bass, 1988), suggests that one of the greatest limitations of the 4 Ps approach "is that it unconsciously emphasizes the inside–out view (looking from the company outwards), whereas the essence of marketing should be the outside–in approach". Nevertheless, the 4 Ps offer a memorable and workable guide to the major categories of marketing activity, as well as a framework within which these can be used.


Seven Ps

As well as the standard four P's (Product, Pricing, Promotion and Place), services marketing calls upon an extra three, totaling seven and known together as the extended marketing mix. These are:

  • People: Any person coming into contact with customers can have an impact on overall satisfaction. Whether as part of a supporting service to a product or involved in a total service, people are particularly important because, in the customer's eyes, they are generally inseparable from the total service . As a result of this, they must be appropriately trained, well motivated and the right type of person. Fellow customers are also sometimes referred to under 'people', as they too can affect the customer's service experience, (e.g., at a sporting event).
  • Process: This is the process(es) involved in providing a service and the behaviour of people, which can be crucial to customer satisfaction.
  • Physical evidence: Unlike a product, a service cannot be experienced before it is delivered, which makes it intangible. This, therefore, means that potential customers could perceive greater risk when deciding whether to use a service. To reduce the feeling of risk, thus improving the chance for success, it is often vital to offer potential customers the chance to see what a service would be like. This is done by providing physical evidence, such as case studies, testimonials or demonstrations.

Training refers to the acquisition of knowledge, skills, and attitudes as a result of the teaching of vocational or practical skills and knowledge that relates to specific useful skills. ... Motivation is a word used to refer to the reason or reasons for engaging in a particular behavior, especially human behavior. ... Process (lat. ... Behavior or behaviour refers to the actions or reactions of an object or organism, usually in relation to the environment. ... Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. ... Physical evidence is any evidence introduced in a trial in the form of a physical object, intended to prove a fact in issue based on its demonstrable physical characteristics. ... Intangibles are qualities in an individual or group of individuals, especially those organized in an official group (e. ... In physics, a potential may refer to the scalar potential or to the vector potential. ... Case studies involve a particular method of research. ... A testimonial or endorsement is a written or spoken statement, sometimes from a public figure, sometimes from a private citizen, extolling the virtue of some product, which is used in the promotion and advertising of that product. ... A demonstration is the public display of the common opinion of a activist group, often economically, political, or socially, by gathering in a crowd, usually at a symbolic place or date, associated with that opinion. ...

Four New Ps

  • Personalization: It is here referred customization of products and services through the use of the Internet. Early examples include Dell on-line and Amazon.com, but this concept is further extended with emerging social media and advanced algorithms. Emerging technologies will continue to push this idea forward.
  • Participation: This is to allow the customer to participate in what the brand should stand for; what should be the product directions and even which ads to run. This concept is laying the foundation for disruptive change through democratization of information.
  • Peer-to-Peer: This refers to customer networks and communities where advocacy happens. The historical problem with marketing is that it is “interruptive” in nature, trying to impose a brand on the customer. This is most apparent in TV advertising. These “passive customer bases” will ultimately be replaced by the “active customer communities”. Brand engagement happens within those conversations. P2P is now being referred as Social Computing and is likely to be the most disruptive force in the future of marketing.
  • Predictive modeling: This refers to algorithms that are being successfully applied in marketing problems (both a regression as well as a classification problem).

Product

In business and engineering, new product development (NPD) is the term used to describe the complete process of bringing a new product or service to market. ...

Scope

  • Breadth -- number of product lines in a range.
  • Depth -- number of product items in a product line.

Steps in product design

  • Design and development of product ideas.
  • Selection of and sifting through product ideas.
  • Design and testing of product concept.
  • Analysis of instead of product concept.
  • Design and testing of emotional product.

Packaging

A sealed pack of diced pork from Tesco. ...

Requirements of good packaging

  • Functional - effectively contain and protect the contents
  • Provide convenience during distribution, sale, opening, use, reuse, etc.
  • Be environmentally responsible
  • Be cost effective
  • Appropriately designed for target market
  • Eye-catching (particularly for retail/consumer sales)
  • Communicate attributes and recommended use of the product and package
  • Compliant with retailers' requirements
  • Promotes image of enterprise
  • Distinguishable from competitors' products
  • Meet legal requirements for product and packaging
  • Point of difference in service and supply of product.
  • For a perfect product, perfect colour.

Forms of packaging

  • Specialty packaging — emphasizes the elegant character of the product
  • Packaging for double-use
  • Combination packaging two or more products packaged in the same container
  • Kaleidoscopic packaging — packaging changes continually to reflect a series or particular theme
  • Packaging for immediate consumption — to be thrown away after use
  • Packaging for resale — packed, into appropriate quantities, for the retailer or wholesaler

Trademarks

Main article: Trademark

“(TM)” redirects here. ...

Significance of a trademark

  • Distinguishes one company's goods from those of another
  • Serves as advertisement for quality
  • Protects both consumers and manufacturers
  • Used in displays and advertising campaigns
  • Used to market new products

Brands

Main article: Brand

A brand is a name, term, design, symbol, or other feature that distinguishes products and services from competitive offerings. A brand represents the consumers' experience with an organization, product, or service. For other uses, see Brand (disambiguation). ...


A brand has also been defined as an identifiable entity that makes a specific promise of value.


Co-branding involves marketing activity involving two or more products. Co-branding is a marketing term used when a single product or service carries more than one brand name of different product categories. ...


Pricing

Pricing refers to the amount of money exchanged for a product. This value is determined by utility to the consumer in terms of money and/or sacrifice that the consumer is prepared to give for it.


Objectives

  • Increase sales volume
  • Increase revenue
  • Achieve or increase profits
  • Increase or maintain market share
  • Eliminate competition
  • Achieve advantages of mass production

Factors influencing price-determination

In economics, one kind of good (or service) is said to be a substitute good for another kind insofar as the two kinds of goods can be consumed or used in place of one another in at least some of their possible uses. ... The supply and demand model describes how prices vary as a result of a balance between product availability at each price (supply) and the desires of those with purchasing power at each price (demand). ... In economics, elasticity is the ratio of the proportionate change in one variable with respect to proportional change in another variable, such as the responsiveness of the price of a commodity to changes in market demand or visa-versa. ... Perfect competition is an economic model that describes a hypothetical market form in which no producer or consumer has the market power to influence prices. ... Monopolistic competition is a common market form. ... This article is about the economic term. ... This article does not cite any references or sources. ...

Steps to determine price

  • Determine market share to be captured
  • Set up price strategy
  • Estimate demand
  • Evaluate competitors' reactions

Distribution (Place)

Channels

  • Manufacturer to consumer (most direct)
  • Manufacturer to wholesaler to retailer to consumer (traditional)
  • Manufacturer to agent to retailer to consumer (current)
  • Manufacturer to agent to wholesaler to retailer to consumer
  • Manufacturer to agent to customer ( ex : AMWAY )

Manufacturers

Reasons for direct selling methods

  • Manufacturer wants to demonstrate goods.
  • Wholesalers, retailers and agents not actively selling.
  • Manufacturer unable to convince wholesalers or retailers to stock product.
  • High profit margin added to goods by wholesalers and retailers.
  • Middlemen unable to transport.

Reasons for indirect selling methods

  • Manufacturer does not have the financial resources to distribute goods.
  • Distribution channels already established.
  • Manufacturer has no knowledge of efficient distribution.
  • Manufacturer wishes to use capital for further production.
  • Too many consumers in a large area; difficult to reach.
  • Manufacturer does not have a wide assortment of goods to enable efficient marketing.
  • Direct on-selling advantages

Wholesalers

Reasons for using wholesalers

  • Bear risk of selling goods to retailer or consumer
  • Storage space
  • Decrease transport costs
  • Grant credit to retailers
  • Able to sell for the manufacturers
  • Give advice to manufacturers
  • Break down products into smaller quantities

Reasons for bypassing wholesalers

  • Limited storage facilities
  • Retailers' preferences
  • Wholesaler cannot promote products successfully
  • Development of wholesalers' own brands
  • Desire for closer market contact
  • Position of power
  • Cost of wholesalers' services
  • Price stabilisation
  • Need for rapid distribution
  • Make more money

Ways of bypassing wholesalers

  • Sales offices or branches
  • Mail orders
  • Direct sales to retailers
  • Travelling agents
  • Direct Orders

Agents

  • Commission agents work for anyone who needs their services. They do not acquire ownership of goods but receive del credere commission.
  • Selling agents act on an extended contractual basis, selling all of the products of the manufacturer. They have full authority regarding price and terms of sale.
  • Buying agents buy goods on behalf of producers and retailers. They have an expert knowledge of the purchasing function.
  • Brokers specialize in the sale of one specific product. They receive a brokerage.
  • Factory representatives represent more than one manufacturer. They operate within a specific area and sell related lines of goods but have limited authority regarding price and sales terms.

Marketing communications

Marketing communications breaks down the strategies involved with marketing messages into categories based on the goals of each message. There are distinct stages in converting strangers to customers that govern the communication medium that should be used.


Advertising

  • Paid form of public presentation and expressive promotion of ideas
  • Aimed at masses
  • Manufacturer may determine what goes into advertisement
  • Pervasive and impersonal medium

Functions and advantages of successful advertising

  • Task of the salesman made easier
  • Forces manufacturer to live up to conveyed image
  • Protects and warns customers against false claims and inferior products
  • Enables manufacturer to mass-produce product
  • Continuous reminder
  • Uninterrupted production a possibility
  • Increases goodwill
  • Raises standards of living (or perceptions thereof)
  • Prices decrease with increased popularity
  • Educates manufacturer and wholesaler about competitors' offerings as well as shortcomings in their own.

Objectives

  • Maintain demand for well-known goods
  • Introduce new and unknown goods
  • Increase demand for well-known goods/products/services

Requirements of a good advertisement

  • Attract attention (awareness)
  • Stimulate interest
  • Create a desire
  • Bring about action

Eight steps in an advertising campaign

  • Market research
  • Setting out aims
  • Budgeting
  • Choice of media (TV,newspaper,radio)
  • Choice of actors (New Trend)
  • Design and wording
  • Coordination
  • Test results

Personal sales

Oral presentation given by a salesman who approaches individuals or a group of potential customers:

  • Live, interactive relationship
  • Personal interest
  • Attention and response
  • Interesting presentation

Sales promotion

Short-term incentives to encourage buying of products:

  • Instant appeal
  • Anxiety to sell

Marketing Public Relations (MPR)

  • Stimulation of demand through press release giving a favourable report to a product
  • Higher degree of credibility
  • Effectively news
  • Boosts enterprise's image

Customer focus

Many companies today have a customer focus (or customer orientation). This implies that the company focuses its activities and products on consumer demands. Generally there are three ways of doing this: the customer-driven approach, the sense of identifying market changes and the product innovation approach.


In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a market offering, including the nature of the product itself, is driven by the needs of potential consumers. The starting point is always the consumer. The rationale for this approach is that there is no point spending R&D funds developing products that people will not buy. History attests to many products that were commercial failures in spite of being technological breakthroughs.[4]


A formal approach to this customer-focused marketing is known as SIVA[5] (Solution, Information, Value, Access). This system is basically the four Ps renamed and reworded to provide a customer focus.


The SIVA Model provides a demand/customer centric version alternative to the well-known 4Ps supply side model (product, price, place, promotion) of marketing management.

Product -> Solution
Promotion -> Information
Price -> Value
Place ->Access


The four elements of the SIVA model are:

  1. Solution: How appropriate is the solution to the customer's problem/need?
  2. Information: Does the customer know about the solution? If so, how and from whom do they know enough to let them make a buying decision?
  3. Value: Does the customer know the value of the transaction, what it will cost, what are the benefits, what might they have to sacrifice, what will be their reward?
  4. Access: Where can the customer find the solution? How easily/locally/remotely can they buy it and take delivery?

This model was proposed by Chekitan Dev and Don Schultz in the Marketing Management Journal of the American Marketing Association, and presented by them in Market Leader - the journal of the Marketing Society in the UK.


The model focuses heavily on the customer and how they view the transaction.


Product focus

In a product innovation approach, the company pursues product innovation, then tries to develop a market for the product. Product innovation drives the process and marketing research is conducted primarily to ensure that a profitable market segment(s) exists for the innovation. The rationale is that customers may not know what options will be available to them in the future so we should not expect them to tell us what they will buy in the future. However, marketers can aggressively over-pursue product innovation and try to overcapitalize on a niche. When pursuing a product innovation approach, marketers must ensure that they have a varied and multi-tiered approach to product innovation. It is claimed that if Thomas Edison depended on marketing research he would have produced larger candles rather than inventing light bulbs. Many firms, such as research and development focused companies, successfully focus on product innovation (Such as Nintendo who constantly change the way Video games are played). Many purists doubt whether this is really a form of marketing orientation at all, because of the ex post status of consumer research. Some even question whether it is marketing. Edison redirects here. ... For the video game system, see Nintendo Entertainment System. ... This article is about computer and video games. ...

  • An emerging area of study and practice concerns internal marketing, or how employees are trained and managed to deliver the brand in a way that positively impacts the acquisition and retention of customers (employer branding).
  • The use of herd behavior in marketing.
The Economist reported a recent conference in Rome on the subject of the simulation of adaptive human behavior.[6] Mechanisms to increase impulse buying and get people "to buy more by playing on the herd instinct" were shared. The basic idea is that people will buy more of products that are seen to be popular, and several feedback mechanisms to get product popularity information to consumers are mentioned, including smart-cart technology and the use of Radio Frequency Identification Tag technology. A "swarm-moves" model was introduced by a Princeton researcher, which is appealing to supermarkets because it can "increase sales without the need to give people discounts." Large retailers Wal-Mart in the United States and Tesco in Britain plan to test the technology in spring 2007 .
Other recent studies on the "power of social influence" include an "artificial music market in which some 14,000 people downloaded previously unknown songs" (Columbia University, New York); a Japanese chain of convenience stores which orders its products based on "sales data from department stores and research companies;" a Massachusetts company exploiting knowledge of social networking to improve sales; and online retailers who are increasingly informing consumers about "which products are popular with like-minded consumers" (e.g., Amazon, eBay).

Internal marketing (IM) is an ongoing process that occurs strictly within a company or organization whereby the functional process aligns, motivates and empowers employees at all management levels to consistently deliver a satisfying customer experience. ... For other uses, see Brand (disambiguation). ... Employer branding is a concept in marketing which defines a company as a preferred employer and promotes the benefits of working for the company to future and current employees. ... The study of the diffusion of innovation is the study of how, why, and at what rate new ideas spread through cultures. ... 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. ... Illustration of the concept of affiliate marketing Affiliate marketing is a web-based marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliates marketing efforts. ... It has been suggested that Internet marketing be merged into this article or section. ... A Market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. ... Personalized marketing (also called personalization, and sometimes called one-to-one marketing) is an extreme form of product differentiation. ... Permission marketing is a term used in e-marketing. ... Branded Content is essentially a supercharged version of product placement inside entertainment produced and paid for by the advertiser. ... Custom media is a marketing term referring broadly to the development, production and delivery of media (print, digital, audio, video, events) designed to strengthen the relationship between the sponsor of the medium and the mediums audience. ... Reality Marketing is a form of Permission marketing that blends many types of interactive advertising techniques into a Reality television show format. ... The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd and edited in London. ... For other uses, see Rome (disambiguation). ... An EPC RFID tag used for Wal-Mart Radio Frequency Identification (RFID) is an automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders. ... Princeton University is a private coeducational research university located in Princeton, New Jersey. ... Wal-Mart Stores, Inc. ... , For other uses, see Tesco (disambiguation). ... Alma Mater Columbia University is a private university in the United States and a member of the Ivy League. ... This article is about the U.S. state. ... Amazon. ... This article is about the online auction center. ...

See also

Look up marketing in Wiktionary, the free dictionary.
Wikiquote has a collection of quotations related to:
Marketing

// Advert redirects here. ... According to Decision Analyst, “Once commercials go ‘on air,’ the only way to know if the advertising is working is tracking research. ... // Advertising research is a specialized form of marketing research conducted to improve the efficacy of advertising. ... How it works In its simplest form article marketing is a form of advertising where a business owner writes short articles related to their field of business and makes them freely available for distribution and publication to their marketplace. ... Borderless Selling is the process of selling services to clients outside the country of origin of services through modern methods which eliminate the actions specifically designed to hinder international trade. ... For other uses, see Brand (disambiguation). ... Brand Orientation is a deliberate approach to working with brands, both internally and externally. ... Branded Content is essentially a supercharged version of product placement inside entertainment produced and paid for by the advertiser. ... Cause marketing or cause-related marketing refers to a type of marketing involving the cooperative efforts of a for profit business and a non-profit organization for mutual benefit. ... Claude C. Hopkins (born 1866) was one of the great advertising pioneers, he believed advertising existed only to sell something and should be measurable and justify the results that it produced. ... Coolhunting is a term coined in the early 1990s referring to a new breed of marketing professionals, called coolhunters. ... This article or section does not cite its references or sources. ... // A specialized field of marketing research, copy testing is the study of television commercials prior to airing them. ... Customer relationship management (CRM) is a broad term that covers concepts used by companies to manage their relationships with customers, including the capture, storage and analysis of customer, vendor, partner, and internal process information. ... Database marketing is a form of direct marketing using databases of customers or potential customers to generate personalized communications in order to promote a product or service for marketing purposes. ... Digital Marketing refers to the practice of marketing services, products and other items using digital tools and techniques that have appeared relatively recently since the rise of the Internet as a mainstream communications platform. ... Wikibooks has more about this subject: Marketing Direct marketing is a discipline within marketing that involves contacting individual customers (business-to-business or consumer) directly and obtaining their responses and transactions for the purpose of developing and prolonging mutually profitable customer relationships. ... An early adopter or lighthouse customer is an early customer of a given company, product, or technology. ... There are very few or no other articles that link to this one. ... Evangelism marketing is an advanced form of word of mouth marketing (WOMM) in which companies develop customers who believe so strongly in a particular product or service that they freely try to convince others to buy and use it. ... // The Oxford University Press defines global marketing as “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives. ... Example of guerrilla marketing in São Paulo, Brazil promoting the Hopi Hari amusement park. ... Integrated Marketing Communications (IMC), according to The American Marketing Association, is “a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time. ... Wikibooks [[wikibooks:|]] has more about this subject: Marketing Internet marketing, also referred to as online marketing, Internet advertising, eMarketing (or e-Marketing), is the marketing of products or services over the Internet. ... Macromarketing addresses big/important issues at the nexus of marketing and society. ... A marketeer or marketer is someone whose job it is to present a good or service to the market in an attractive way so that others will be tempted to buy it. ... Market research is the process of systematic gathering, recording and analyzing of data about customers, competitors and the market. ... Marketing collateral, in sales, is the collection of media used to support the sales of a product or service. ... This article does not cite any references or sources. ... The marketing mix is generally accepted as the use and specification of the 4 Ps describing the strategic position of a product in the marketplace. ... LOLZ Mass customization is a business technique which allows any customer to buy a product or service that has been pre-designed(customized) to fit a customers exact needs. ... Master of Marketing Research (MMR or M.M.R.) is a graduate degree program that may be from one to three years in length. ... A coffee mug bearing the logo of a company or organization is a common example of product merchandising. ... Mobile Marketing can refer to one of two categories of marketing. ... Multichannel Marketing is marketing that employs the use of multiple marketing channels to reach potential customers. ... Behavioral targeting or behavioural targeting is a technique used by online publishers and advertisers to increase the effectiveness of their campaigns. ... Permission marketing is a term used in e-marketing. ... For the Arrested Development episode, see Public Relations (Arrested Development episode). ... Predictive analytics encompasses a variety of techniques from statistics and data mining that process current and historical data in order to make “predictions” about future events. ... // Product Marketing deals with the first of the 4Ps of marketing, which are Product, Pricing, Placement, and Promotion. ... Reality Marketing is a form of Permission marketing that blends many types of interactive advertising techniques into a Reality television show format. ... Referral Marketing is a proven method of advertising. ... Selling technique is the body of methods used in the profession of sales, also often called selling. ... Search engine marketing, or SEM, is a form of Internet marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs). ... The tertiary sector of industry, also called the service sector or the service industry, is one of the three main industrial categories of a developed economy, the others being the secondary industry (manufacturing and primary goods production such as agriculture), and primary industry (extraction such as mining and fishing). ... Social marketing is the systematic application of marketing along with other concepts and techniques to achieve specific behavioral goals for a social good. ... Sport marketing (or sports marketing in the United States) refers to the specific application of marketing principles and processes to sport products (e. ... Tenders are special procedures to generate competing offers from different bidders looking to obtain an award of business activity in works, supply, or service contracts. ... This article needs to be cleaned up to conform to a higher standard of quality. ... Look up trend, trendy in Wiktionary, the free dictionary. ... Up-selling is a sales technique, where a salesman attempts to have the consumer purchase more expensive items, upgrades, or other add-ons in an attempt to make a better sale. ... Value of a product within the context of marketing means the relationship between the consumers expectations of product quality to the actual amount paid for it. ... Viral marketing and viral advertising refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness, through self-replicating viral processes, analogous to the spread of pathological and computer viruses. ... Web analytics is the study of the behaviour of website visitors. ... Wikipedia does not have an article with this exact name. ... Wiktionary (a portmanteau of wiki and dictionary) is a multilingual, Web-based project to create a free content dictionary, available in over 151 languages. ... Image File history File links This is a lossless scalable vector image. ... Wikiquote is one of a family of wiki-based projects run by the Wikimedia Foundation, running on MediaWiki software. ...

Related lists

See List of marketing topics for an extensive list of the marketing articles.

This is a list of over 200 articles on marketing topics. ... This is a list of articles on general management and strategic management topics. ... Organizational studies - an overview Organizational development Management development Mentoring Coaching Job rotation Professional development Upward feedback Executive education Supervisory training leadership development leadership talent identification and management individual development planning 360 degree feedback succession planning Skills management performance improvement process improvement job enrichment Training & Development managing change and also change... This aims to be a complete list of the articles on economics. ... Topics in finance include: // Finance an overview Arbitrage Capital (economics) Capital asset pricing model Cash flow Cash flow matching Debt Default Consumer debt Debt consolidation Debt settlement Credit counseling Bankruptcy Debt diet Debt-snowball method Discounted cash flow Financial capital Funding Financial modeling Entrepreneur Entrepreneurship Fixed income analysis Gap financing... Following is a list of accounting topics. ... Management information systems an overview E-business Intranet strategies Database management system Data warehousing Data mining Document warehousing Customer relationship management (CRM) Sales force management system Enterprise resource planning (ERP) Human Resource Management Systems (HRMS) Business performance management Project management software Integration management Middleware Groupware and collaborative systems RSA Computer... Manufacturing and manufacturing systems manufacturing factory Craft system English system of manufacturing American system of manufacturing Mass production Batch production Just in time manufacturing Toyota Production System Lean manufacturing Computer-aided manufacturing (CAM) Mass customization Theories of production Taylorism Fordism Theory of constraints Productivity Productivity benchmarking cost accounting experience curve... This is a list of business law topics within the field of commercial law. ... International trade - an overview Absolute advantage Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) APEC Autarky Balance of trade barter Bilateral Investment Treaty (BIT) Bimetallism branch plant Bretton Woods Conference Bretton Woods system British timber trade Cash crop Comparative advantage Continental trading bloc Cost, insurance and freight Currency... See business ethics, political economy and Philosophy of business for an overview. ... This is an annotated list of important business theorists. ... This is an alphabetical list of notable economists, that is, experts in the social science of economics. ... List of corporate leaders: Joe Ackermann - Deutsche Bank William Maxwell Aitken, 1st Baron Beaverbrook- newspaper magnate Arthur Andersen - Arthur Andersen Kunitake Ando - Sony John Jacob Astor - Fur trading and real estate Nitchell Baker - Mozilla Corporation Percy Barnevik - Investor Bernard Baruch - Financier, Investor, Presidential advisor Andy Bechtolsheim - Sun Microsystems Silvio Berlusconi...

References

  1. ^ [1]
  2. ^ Gabriel Steinhardt (2008). "Concept of Marketing" (PDF). 2.0. Blackblot. Retrieved on 2008.
  3. ^ "The Concept of the Marketing Mix" from the Journal of Advertising Research, June 1964 pp 2-7
  4. ^ "Marketing Management: Strategies and Programs", Guiltinan et al, McGraw Hill/Irwin, 1996
  5. ^ "In the Mix: A Customer-Focused Approach Can Bring the Current Marketing Mix into the 21st Century". Chekitan S. Dev and Don E. Schultz, Marketing Management v.14 n.1 January/February 2005
  6. ^ "Swarming the shelves: How shops can exploit people's herd mentality to increase sales?", The Economist, 2006-11-11, p. 90. 
2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Common Era (or Anno Domini), in accordance with the Gregorian calendar. ... The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd and edited in London. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 315th day of the year (316th in leap years) in the Gregorian calendar. ...

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