The Company’s Macro Environment The company and all of the other actors operate in a larger macro environment of forces that shape opportunities and pose threats to the company. There are six major forces (outlined below) in the company’s macro environment. There are six major forces (outlined below) in the company’s macro environment. Demographic. Economic. Natural. Technological. Political. Cultural. a. Demographic Environment Demography is the study of human populations in terms of size, density, location, age, sex, race, occupation, and other statistics. It is of major interest to marketers because it involves people and people make up markets. Demographic trends are constantly changing. Some more interesting ones are. 1). The world’s population (though not all countries) rate is growing at an explosive rate that will soon exceed food supply and ability to adequately service the population. The greatest danger is in the poorest countries where poverty contributes to the difficulties. Continue reading
Marketing Management
Marketing management combines the fields of marketing and management. Marketing consists of discovering consumer needs and wants, creating the goods and services that meet those needs and wants; and pricing, promoting, and delivering those goods and services. Doing so requires attention to six major areas – markets, products, prices, places, promotion, and people. Management is getting things done through other people. Managers engage in five key activities – planning, organizing, staffing, directing, and controlling. Marketing management implies the integration of these concepts.
What Is Customer Lifetime Value (CLV)?
While some companies aim to grow their customer base, the successful ones recognize the importance of increasing customer lifetime value. Loyal customers offer more value to your business‐generating over 10x more revenue. Customer lifetime value is an important concept to understand from a marketing standpoint. The cost of obtaining a customer and gaining that first sale is often much higher than the costs of maintaining the relationship with the customer. Customer lifetime value (CLV) is a critical metric used to estimate the value of each customer you acquire. It validates whether you’re actually producing a profit. Several companies strive to increase customer lifetime value because they believe it’s a good indicator of business performance. Companies use the metrics such as customer life time value (CLV) to understand the importance of a certain type of customer towards the business and give a greater insight of the expected future revenue as well Continue reading
Consumer Behaviour and Factors Influencing Buyer Behavior
Consumer behavior is an attempt to understand & predict human actions in the buying role. It has assumed growing importance under market-oriented or customer oriented marketing planning & management. Consumer behavior is defined as “all psychological, social & physical behavior of potential customers as they become aware of, evaluate, purchase, consume, & tell others about product & services”. Each element in this definition is important. Consumer behavior involves both individual (psychological) processes & group (social processes). Consumer behavior is reflected from awareness right through post-purchase evaluation indicating satisfaction or non-satisfaction, from purchases Consumer behavior includes communication, purchasing & consumption behavior Consumer behavior is basically social in nature. Hence social environment plays an important role in shaping buyer behavior. Consumer behavior includes both consumer & business buyer behavior In consumer behavior we consider not only why, how, & what people buy but other factors such as where , how often, and Continue reading
Knowledge of Sub-Cultural Groups and Market Segmentation
The segmentation of the market involves the dividing of entire market into small customers groups who have different type of responses for different marketing strategies for particular service or product. In this way the organization can design the marketing policies according to the particular needs and requirements of each segment in order to have more profitability by more generating favorable responses than by simply applying a single marketing policy for whole market. The market segmentation is mostly done at the level of customers. But in case of international marketing sometimes markets are also segmented on the basis of whole countries by considering the aspects that are common among countries. This type of segmentation is not proved that much successful as countries have great variation in them and it is difficult to take meaningful averages. The most suitable basis that is used to segment the markets is customers and their unique Continue reading
Seven Steps in Organizing a Successful Event
To market events (Read: Event Management — A Modern Strategic Marketing Tool), one should be well organized, with the required infrastructure that the target clientele will find it worthwhile to invest their time and resources in anticipation of assured results. To achieve this objective, a suitable event strategy should be designed and developed for organizing a successful event. There are seven important steps in organizing a successful event. Step 1: Planning Prior planning prevents poor performance. No event manager should be complacent or procrastinating. Nothing should be left to chance, only to regret later. Planning, hence, is essential for organizing a successful event in all respects. Before starting any event, a bit of research would help. One should start sufficiently early so that there will be ample time to complete the assigned project. It would help to have a briefing note or a checklist listing out the objectives and goals Continue reading
Customer Confidence Winning Strategies Adopted by Organizations
The concept of winning customer confidence has received much attention among various stakeholders such as customers, shareholders, investors, and the government as they strive to establish whether their interest is being taken into account. Companies use multiple tactics to convince potential and existing consumers concerning why their products stand out from that of other competitors. Various customer confidence winning strategies such as celebrity and expert endorsement, attitude changing, low involvement, and high involvement approaches to make the advert more appealing, hence, this helps in boosting sales. Companies invest a substantial amount of resources in employing these criteria to keep the targeted audience hooked, in turn, this aids in increasing sales as well as the market share. Despite being costly, advertisers find it worthwhile to apply these techniques, i.e., celebrity endorsement since it helps to boost sales and it allows customers to make it a point of reference. Many of the Continue reading