Services firms are not identifying their key market segments and then determining how they wish consumers to perceive both their company and its products and services. Positioning is of particular significant in the services sector as it places an intangible service within a more tangible frame of reference. Thus the concept of positioning stems from a consideration of how an organization wishes its target customer to view its products and services in relationship to those of its competitors and their actual, or perceived, needs. “Positioning is concerned with the identification, development and communication of a differentiated advantage which makes the organization’s products and services perceived as superior and distinctive to those of its competitors in the mind of its target customers.” Positioning offers the opportunity to differentiate any service. Each service firm and its goods and services has a position or image in the consumer’s mind and this influences purchase Continue reading
Marketing Concepts
Marketing Research – Definition, Importance and Process
Definition of Marketing Research Marketing research is a key to the evolution of successful marketing strategies and programmes. It is an important tool to study buyer behavior, changes in consumer lifestyles and consumption patterns, brand loyalty and forecast market changes. Research is also used to study competition and analyze the competitor product’s positioning and how to gain competitive advantage. Recently, marketing research is being used to help create and enhance brand equity. According to Philip Kotler, Marketing research is systematic problem analysis, model building and fact finding for the purposes of important decision making and control in the marketing of goods and services. The important decision making related to market strategy and other tasks related to marketing depends on findings or marketing research. Marketing research process reduces the chances of errors, miss conceptions and uncertainty from decision making process. It is therefore very important to conduct marketing research to identify Continue reading
Brand Case Study: Virgin Atlantic, Adidas, Xerox, Ikea and Accenture
VIRGIN ATLANTIC Virgin Atlantic was born in the 1980s. Richard Branson, the British entrepreneur, had already created a successful brand with Virgin Group, particularly in the music business. He had founded the group when he was 20 as a mail-order record company and shortly after opened a music shop in London’s main shopping thoroughfare, Oxford Street. The original brand slogan of these stores was ‘Cheap and nasty’. A music studio was built in Oxfordshire in 1972, where one Mike Oldfield recorded his massively successful album Tabular Bells for the Virgin Records label. This album sold 5 million copies and was the catalyst for Virgin Records, which signed a range of successful artists, including The Rolling Stones, Culture Club, Janet Jackson, Peter Gabriel, Simple Minds and The Human League. Virgin was to become one of the six biggest record companies in the world. By the early 80s Virgin Group was well Continue reading
Steps Involved in Advertisement Planning
Advertisers and advertising agencies believe that customers have needs and desires, which can be fulfilled through the purchase and use of products and services. Advertising works largely through appeal of emotions of envy, fear, anxiety, about one’s appearance and lack of status. It is widely assumed that advertising works if the AIDCA formulas are followed. The formula sums up the principles of advertising. The name of the formula is derived from the initial letters of the words: Attention, Interest, Desire, Conviction and Action. The formula suggests that the attention and interests of the customers must be gained first before the process of stimulating desire, imparting conviction and urging action in advertisements can bring about a change in the buying behaviors. Steps Involved in Advertisement Planning The Attention part is the banner or headline that makes an impressive benefit promise. Interest builds information in an interesting way, usually meaning that this Continue reading
Green Strategies and Green Marketing Strategy Matrix
Industry green norms and potential green market size are key issues for companies looking to gain competitive advantage with green marketing. Companies should consider the likely size of green markets in its industry as well as how can they differ their green products or services from their competitor’s one’s before they take steps on going green. There are four types of green strategies: Lean Green, Defensive Green, Shaded Green and Extreme Green. Following Green Marketing Strategy Matrix illustrates the need for companies to identify their position in regards to substantiality of green market segments and differentiability of greenness in order to choose the right strategy to enter a green market. Promotions tools adopted by this strategy are rather quiet such as public relations versus mass advertising. The Shaded Green strategy puts some secondary emphasis on greenness in its more overt promotional efforts and also pursues green product development as well. Continue reading
Group Influence on Consumer Behavior
Each consumer in society is a member of different groups depending on their culture, various subcultures or even social class can influence their consumer purchase. A group can be formed when two or more individuals share a set of norms and beliefs. A group becomes a reference group when an individual recognizes with the group and takes on many of the values, attitudes or personal standards of group members and use it as the base of his/her day to day behavior. Reference group is defined as having significant relevance upon an ‘individual’s evaluations, aspirations or behavior influencing the consumer. The nature of reference group influence can take three forms, this is because some groups and individuals are able to influence greater than others and affect a range of consumption. Informational influence: This is when the reference group is used as a knowledgeable source in the different parts of the buyer’s Continue reading