Integrated Marketing Communication is defined as the coordination and integration of all marketing communication tool, avenues and sources within a company into seamless program that maximize the impact on customer and other end users at a minimal cost. This integration affects all firm business-to-business, marketing channel, customer-focused, and internally directed communications. It is a management concept that is designed so that all the marketing communication which consists of advertising, sales promotion, public relation, and direct marketing work together as a unified force rather than each of those marketing communication work in isolation. Besides, it acts as an aggressive marketing plan because it sets and tracks marketing strategy that captures and uses extensive amount of customer information. It also ensures that all forms of communications and messages are carefully linked together to achieve specific objective. Benefits of Integrated Marketing Communication Integrated Marketing Communication ensures that all forms of communications tools and Continue reading
Marketing Concepts
Level of Involvement in Consumer Behavior
Consumer involvement is considered as an important variable that can help explain how consumers process the information and how this information might influence their purchase or consumption related behavior. However, there is wide agreement that the degree of involvement has a very significant effect on consumer behavior. Herbert Krugman, a researcher is credited with his contribution to the concept of consumer involvement. According to him, consumers approach the marketplace and the corresponding product/service offerings with varying levels and intensity of interest and personal importance. This is referred to as consumer involvement. Involvement variables are believed to precede involvement and influence its nature and extent. These variables are believed to be the sources that interact with each other to precipitate the level of consumers involvement at any particular time and situation. The extent of risk perception the consumer has with purchase decision can also influence the level of involvement. The perceived Continue reading
Importance of Marketing in an Organization
Marketing has many definitions. Definitions that focus on customer needs and that are customer-oriented can be used to explain the success of an organization much more clearly. Marketing can be defined as the process through which potential clients and customers who are willing and able to buy are enticed to buy your products or services. According to American Marketing Association, marketing is defined as “the process, the activity, and set of institutions for communicating, creating, exchanging and delivering offerings that have value for clients, customers, partners, and society at large.” According to the Chartered Institute of Marketing, marketing is defined as “The process of management used to identify, anticipate and satisfy customer requirements with the aim of making profits.” Importance of Marketing in an Organization An organization can only succeed when proper marketing strategies are put in place. Marketing determines the nature of an organization’s production and distribution channels for Continue reading
Macro Environment in Marketing
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
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
Case Study of Fedex: Using Marketing Channels to Create Value for Customers
FedEx as a service company that mainly focuses on transportation or shipment services, channel played an important role leading to success. FedEx need a good channel to get and reach more customers. FedEx has a strong network structure linking all the market together. FedEx serves more than 220 countries and territories currently. Further, these networks are linked up by land, air and ocean transportation. FedEx’s service covered all around the globe, making services available for customers from many countries and almost every place. FedEx has many drops off location around the globe. Customer can choose either one drop- off location that is nearest to them. FedEx has great air network, having more than 320 daily international flight and 654 aircraft ready to ship the packages. FedEx has many hubs around the world working as a midpoint of delivering the packages. There are four hubs in Asia pacific. That is Shanghai, Continue reading