Economic objections against Advertising The criticisms leveled against modern advertising on economic grounds can be summarized as follows: Advertising creates monopolistic tendencies: It is argued that skillful and forceful advertising tends to create semi-monopolies particularly for branded goods. Their plea is that the advertisements create new demands so that one product is preferred to the exclusion of others. But this allegation is baseless. Monopoly is not possible in a competitive market. Advertising stimulates competition. Very often many small advertisers complete successfully against the bigger traders. Advertising is unproductive: It is often argued that advertising is unproductive since it does not produce any tangible products. This argument is also worthless. All productive work need not result in tangible goods. Effective advertisement creates demand for the product and thereby stimulates production. It is indeed a valuable service to the producer. Thus, advertising is an economic necessity. Advertising compels the consumers to buy: 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 Classifications of Advertising
First of all it is quite necessary to understand the true meaning of advertising in the business terminology. Advertising is a tool of marketing for sales promotion and product awareness to customers. It is a one type of message by such mediator, presentation as well as promotional offer by a firm which can be paid and public announcement. Advertising is a component of marketing system. It deals with the awareness of customers regarding new product or some features about the existence product. It is quite important step for marketing leaders because it involves strategy selection, expenditure analysis and advertising media selection. It is the most expensive strategy among all marketing systems. Advertising is the tool of spreading information widely by some non-personal means by the paid media where the information is transferred about the organisation that pays the money for media. The message is carried out by different Medias. Adverting Continue reading
An Introduction to Branding
The term brand means different things to the different roles of buyer and seller, with buyers generally associating brand with a product or service, and merchants associating brand with identity. Brand can also identify the company behind the specific product — that’s not just a biscuit, that’s Britannia biscuit. This use of brand puts a “face” behind the name, so to speak, even if the “face” is the result of advertising copy and television commercials. This use of brand also says nothing of quality, just the buyer’s exposure to the brand’s PR and media hype. For the typical merchant, branding is a way of taking everything that is good about the company — positive shopping experience, professionalism, superior service, product knowledge, whatever the company decides is important for a customer to believe about the company — and wrapping these characteristics into a package that can be evoked by the brand Continue reading
SERVQUAL Model for Measuring Service Quality
Quality is the key to achieving customer satisfaction. Quality is a dynamic state associated with products, services, people and environments that meets or exceeds expectations. Quality is also rapidly embracing the nature or degree of impact an organization has of its stakeholders, environment and society. In the service industry, definitions of service quality tend to focus on meeting customers needs and requirements and how well the service delivered meets their expectations. In order to deliver and maintain service quality, an organization must first identify what it is that constitutes quality to those whom it serves. The key to ensuring good service quality is meeting or exceeding what customers expect from the service. It was clear to us that judgements of low and high quality service depend on how customers expect from the service. It was clear to us that judgments of high and low service quality depend on how customers Continue reading
The macroeconomic environment in marketing
An analysis of many companies’ financial results will often indicate that business people attribute their current financial success or failure to the state of the economy. For example, in 2002 the house builder Taylor Woodrow reported increased profits, which it attributed to a buoyant housing market, based on a high level of consumer confidence within the economy. Ten years earlier, a weak economy and falling house prices had led to big losses for many house builders, and some went out of business. Economic growth and the distribution of income Few business people can afford to ignore the state of the economy, because it affects the willingness and ability of customers to buy their products. Marketers therefore keep their eyes on numerous aggregate indicators of the economy, such as Gross Domestic Product (GDP), inflation rates, and savings ratios. However, while aggregate changes in spending power may indicate a likely increase for Continue reading
Monitoring Marketing Environment
The marketing environment is dynamic it is always changing. Whether the forces of the marketing environment fluctuate slowly or rapidly, they create uncertainty, obstacles, and opportunities. Marketers must constantly monitor the marketing environment to be prepared to capitalize on opportunities and minimize adverse conditions. To monitor changes in the marketing environment effectively, marketing managers must engage in environmental scanning and analysis. Environmental Analysis Environmental analysis is the process of assessing and interpreting the information gathered through environmental scanning. A manager reviews the information for accuracy, ties to reconcile inconsistencies in the data, and interprets the findings. Analysis allows a marketing manager to discern changes in the environment and, if possible, or predict future changes. By evaluating these changes, a marketing manager should be able to determine possible threats and opportunities associated with environmental fluctuations. Knowledge of current and predicted environmental changes aids a marketing manager in assessing the performance of Continue reading