One of the core objectives of business organisations is to maximise their profit. Attainment of this goal is only possible if is firm has integrated customer-driven focus. Over the past 2 decades, firms have increasingly considered the concept of market segmentation as an important element in their marketing success. Market segmentation is defined as the process through which a firm partitions its market into small groups depending on the customers’ characteristics and needs. Firms intend to satisfy the consumer’s needs. Currently, adoption of mass marketing can lead into a firm failing. For example, a firm’s margin may be pushed downwards because some needs of a certain category of consumers are not wholly addressed. This may also give the competitor a winning margin. Market segmentation is based on the notion that a market is heterogeneous in nature. Therefore, it is possible for a firm to divide the market into small homogenous groups 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.
Major Distribution Strategies in Marketing
Companies have to decide on the number of intermediaries to use in their channel. The various strategies that are available are as follows: Exclusive distribution Selective distribution Intensive distribution Exclusive distribution: It involves severely limiting the number of intermediaries handling the company goods or services. It is used when the producer wants to maintain a great deal of control over the source level and service output offered by the reseller. Often it involves exhaustive dealer agreement in which dealer agrees not to carry competitive brand. By generating exclusive distribution, the product hopes to obtain more aggressive and knowledge selling. Exclusive distribution tends to enhance the product image and attain larger markups. It requires greater partnership between the seller and the reseller and it is found in major industrial products, automobiles sector etc. Selective distribution: It involves more than a few and less than all of the intermediaries who are willing Continue reading
Monitoring of Economic and Social Environments in Marketing
In this day and age, economic and social environments are developing at a rapid pace, also it plays a crucial role in deciding consumption. The economic and social environments belong to the marketing environment. According to Kotler, marketing environment can be defined as consisting of the actors and forces outside marketing that affect markers’ ability to develop and maintain successful relationships with its target customers. The marketing environment offers both opportunities and threats. Some assert that the monitoring of the economic and social environments greatly contributes to anticipating customer requirements. However, others consider that it is not the significant element for anticipating although it sometimes proves successful. This article will attempt to demonstrate that the monitoring of the economic and social environments greatly contributes to anticipating customer requirements, although it also brings some problems, and companies should constantly watch and adapt to the marketing environment in order to seek opportunities Continue reading
How Artificial Intelligence Has Influenced Marketing
Artificial Intelligence (AI) influences marketing mechanisms and procedures by providing insight into consumer behavior and preferences. AI is a system’s capacity to analyze data correctly, learn from the analysis, and use it to achieve specific goals. This technology uses machine-learning algorithms to customize content and products to satisfy target markets and influences consumer choices by offering suggestions based on social perceptions. This technological tool can help organizations maximize their competitive advantage and market dominance. Nevertheless, the involvement of AI comes along with doubt and disbelief due to different biases. Therefore, organizations must isolate and neutralize biases to realize the benefits of AI in inducing consumer preference. History of Artificial Intelligence Experts have exerted themselves constantly to improve technology throughout the years. The inception of AI occurred in the 1940s when Isaac Asimov, an American Science Fiction writer, developed three laws of robotics through his short story ‘Runaround’. The first law Continue reading
Evaluating Advertising Effectiveness
An advertising measurement is adopted both before and after an advertising campaign is launched. After a campaign has been launched, it is essential to know how far the advertising plans, strategies and programmes are successful in achieving the objectives so that they may be modified and redesigned for better performance if needed. This process is known as evaluating advertising effectiveness. Some advertisers do not bother to measure advertising effectiveness. They expect that the sales will ultimately increase by reason of advertising. But, recently, problems and difficulties have compelled them to measure advertising effectiveness. The producers also adopt a measuring device because they incur a sizable amount of expenditure on advertising. The effectiveness of media and message are also assessed for their use in future. The results of same amount of advertising budget vary for several reasons. Only through the measuring of advertising effectiveness the success of a particular campaign can Continue reading
Key Characteristics of Online Marketing
With the maturity of Internet technology and low cost of networking, the Internet is like an “adhesive” to bind businesses, groups, organizations and individuals together across time and space, and making the exchange of information between them become “so easy.” Of Marketing, the most important and most essential is information dissemination and exchange between organizations and individuals. If there is no exchange of information, then the transaction has no source. For this reason, the Internet has certain features which are required in marketing to make internet marketing possesses the following characteristics: Not subject to the limitations of time and domain. The ultimate goal of marketing is occupy market share. Because the Internet can exchange information by transcending time and space constraints, firms have more time and more space for marketing. They could provide global marketing anytime and anywhere. Rich media. The Internet was designed to transmit multimedia information, such as Continue reading