Does Marketing of Brand Help? We take guidance from the definition of brand as a promise of value that is… Unique Relevant Sustainable These three dimensions of all brands point the way for marketers to create value inside any organization. Regardless of its role and expectations, marketing will win respect when it is recognized as a contributor of value that is unique (not generated by any other area, department or function), relevant (supporting results for the organization) and sustainable (ongoing and lasting). 1. Unique Value The unique value of marketing is its focus on customers. More than any other function, marketing leads the way for the organization to understand, attract and keep customers. While by no means an exclusive domain, marketing is uniquely absorbed with this external focus in holistic terms. Marketing’s contribution to the organization is to lead the way in customer focus by bringing the customer perspective inside Continue reading
Marketing Principles
The Social and Cultural Environment in Marketing
The socio-cultural environment is made up of institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviors. Socio-cultural forces usually influence the welfare of a business firm in the long-run. With ever changing society the New demands are created and old ones are lost in due course. Thus necessary adjustments are to made in the marketing plan to meet the need need/wants of the target market. The socio-cultural factors that contribute to a change are; Demographics Cultural Influences Environmental issues Animal Welfare Social influences Social and cultural factors influence all aspects of consumer and buyer behavior. The difference between these factors in different parts of the world can be a central consideration in developing and implanting international marketing strategies. Social and cultural forces are often linked together whilst meaningful distinctions between social and cultural factors can be made in many ways by the way the Continue reading
Objections Against Advertising
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
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
Howard Sheth Model of Consumer Behavior
John Howard and Jagadish Sheth put forward the Howard Sheth model of consumer behavior in 1969, in their publication entitled, ‘The Theory of buyer Behaviour’. The Howard Sheth Model is a sophisticated integration of the various social, psychological, and marketing influences on consumer choice into a coherent sequence of information processing. It aims not only to explain consumer behavior in terms of cognitive functioning but to provide an empirically testable depiction of such behavior and its outcomes (Howard 1977). The Howard Sheth Model proposes that a consumer’s purchase decision is influenced by multiple individuals, such as family members. It recognizes that family members take on different roles in the purchasing process, such as gathering information or deciding budgets. The model also acknowledges that retailers deal with a collection of individuals rather than a homogeneous unit. It identifies three levels of decision making – extensive problem solving, limited problem solving, and Continue reading