An underdog strategy involves a small and, usually, young firm taking on a much larger competitor. It is often employed by an upstart company that doesn’t hesitate to get into a fight with much bigger opponents in order to break their monopoly and offer the market better products, lower prices, or both. The underdog enters a market dominated by established players that are portrayed as being somewhat bureaucratic, complacent, and unresponsive to customer needs. Firms following underdog strategy promise to offer an attractive alternative to what customers have been buying. Southwest Airlines, in its early years, is an example of a company that became an underdog in its fight against established competitors, as it offered the traveling public highly attractive prices and superior value. Southwest was ready to begin operations in 1967 but could not do so until 1971 due to time-consuming court battles initiated by Braniff and Texas International 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.
Nicosia Model of Consumer Behavior
Nicosia Model of Consumer Behavior was developed in 1966, by Professor Francesco M. Nicosia, an expert in consumer motivation and behavior. This model focuses on the relationship between the firm and its potential consumers. The model suggests that messages from the firm (advertisements) first influences the predisposition of the consumer towards the product or service. Based on the situation, the consumer will have a certain attitude towards the product. This may result in a search for the product or an evaluation of the product attributes by the consumer. If the above step satisfies the consumer, it may result in a positive response, with a decision to buy the product otherwise the reverse may occur. Looking to the model we will find that the firm and the consumer are connected with each other, the firm tries to influence the consumer and the consumer is influencing the firm Continue reading
Approaches to Measuring Advertising Effectiveness
There are two approaches to measuring advertising effectiveness, viz,, experimental method and survey method. Under experimental method, consumers are given a controlled exposure to the message and the effects are measured on the basis of the change in opinion or attitude. A base line is observed with the use of a control group not exposed to the advertising campaign. The results of the exposure in almost all the situations are recorded. The alternative effects of each exposure are considered for comparison and with a view to establishing a relationship between the exposure and the effects. Field experiments are conducted to measure the effects of mass communication. Sample surveys or interviews or questionnaires are used to obtain information about people’s exposure to the advertising campaign. The advertising effectiveness is evaluated on the basis of the correlations between the exposure and the attitude or action. Pre Testing Methods Pre-testing is preferred because Continue reading
Gartner Competency Model – Customer Relationship Management (CRM) Model
Customer relationship management is a strategy of every organization which is made by the companies and the business to maintain the performance and the position of a company. Customer relationship management is a model which could be defined as technology, strategy and practice that is used by various organizations to develop and manage the customer data and customer interactions so that a good relationship could be managed. These strategies helps the company to maintain the relationship with the customers and also help the company to make loyal customers, indirectly these strategies help the company to enhance the turnover and grab more market share. It also helps a company to retain the customers. Customer relationship model is an approach that assists the company to manage the customers. CRM model helps a company to build and develop a good relationship with the customers. Basically, a CRM model is known as an “opportunity for business” Continue reading
Brand Tribalism – Consumer Tribal Behavior on Brand Loyalty
Concept of Brand Tribalism A brand tribe can be defined as a social network of varied persons – who are linked by a shared belief around a brand; its members are not simple consumers, they are also believers and promoters. A brand tribe does collective action and therefore it is implicated as post-modern business. The emergence of brand tribalism represents tribal consumption’s. Brand tribalism emerges because there is a group of consumers who adore this brand emotionally connected by some values and usage of consumption, using the social “linking value” of products and services to create a community and express identity. The phenomena of tribes can be presented as an expression of both self and social identity. Consumer social identities and consumption choices shift depending on situational and lifestyle factors. So, the phenomena of Brand tribalism can also be understood and accessed through their shared beliefs, ideas and consumption. Due Continue reading
Why Online Marketing is More Effective than Traditional Ways?
Marketing is the only way by which consumers are able to gather knowledge about a particular product. Marketing enables the company to build their brand awareness among the consumers. The buying habit of the consumers has changed a lot in the recent years and for that, the marketing process has also changed as per the requirement of the consumers. The two marketing process are ruling the world but to know which on is the better is debatable. The traditional marketing that is company advertising and the online marketing is the two marketing option in today’s world. Traditional marketing or the company advertisement is the old way of marketing the products and this method includes print media, broadcast media, direct mail, and telemarketing. Online or digital marketing is the new tradition in the field of marketing. This includes the social networking sites, video marketing, banner ads, websites, reviews of the products Continue reading