...DEVELOPING A MARKETING MIX Intuition and creative thinking are essential job requirements for a marketing manager. But relying on just these can lead to inaccurate assumptions that may not end up delivering results. To ensure a marketing mix that is based in research and combines facts with innovation, a manager should go through the following systematic process: Step 1 The first item on the marketing manager’s agenda should be to define what the product has to offer or its unique selling proposition (USP). Through customer surveys or focus groups, there needs to be an identification of how important this USP is to the consumer and whether they are intrigued by the offering. It needs to be clearly understood what the key features and benefits of the product are and whether they will help ensure sales. Step 2 The second step is to understand the consumer. The product can be focused by identifying who will purchase it. All other elements of the marketing mix follow from this understanding. Who is the customer? What do they need? What is the value of the product to them? This understanding will ensure that the product offering is relevant and targeted. Step 3 The next step is to understand the competition. The prices and related benefits such as discounts, warranties and special offers need to be assessed. An understanding of the subjective value of the product and a comparison with its actual manufacturing distribution cost will help set a realistic price point. Step 4 ...
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...Different Approaches for Marketing Submitted by: Ankita Taneja (11PGDM072) The Production Concept • The Production Concept holds that a consumer will favor only that product which is available in the market and at a highly affordable price, as compared to a product which is of a better quality but not easily available or of a higher price. • An example can be the Parle biscuits. They have 14 manufacturing units for biscuits and 5 manufacturing units for confectioneries. Thus with the concepts of mass production, distribution and competitive prices, they have captured 38% market share for biscuits in India and 90% market share for glucose biscuits against its competitors like Sunfeast and Britannia amongst others. The Product Concept • The Product concept holds that consumers will favor products that offer the most in quality, performance and innovative features. Hence this marketing strategy focuses on making continuous product improvements. • An example for this can be the Blackberry phones. After the launch of the smartphones by Blackberry like Curve and Bold, it strived to continuously offer upgrades in each series. From Curve 8520 to Curve 3G which offers compatibility for the 3G services and the Bold series ranging from Bold 9100, Bold II and Bold III, the organization aims at continuous research and upgrades even though the pricing is maintained higher than the competition like Apple iPhone and Samsung Android phones. The Selling Concept • This concept...
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...Business Approaches, Management, and Marketing: Amazon.com vs. Borders Books BUS 302: Management Concepts April 29, 2012 Jeff Bezos, former vice-president of D.E. Shaw, founded Amazon.com in 1994. After reading an article that forecast an annual Web growth of 2,300 percent, Jeff Bezos decided to make Amazon.com’s headquarters in Seattle, Washington. Seattle, Washington was a hot spot for the rapidly growing high tech work force. Bezos had a hard time finding initial investors, because he did not project a profit for the first five to six years of the company’s formation. Bezos startup funds came from family and friends, he ultimately raised one million dollars for his initial capital. Amazon.com started its operations in Bezos garage selling books, but quickly grew to the Amazon.com we know today. Amazon.com sells DVDs, CDs, furniture, jewelry, electronics, software, video games, toys and even food. Amazon.com sells its products all around the world and can reach any consumer that has an interest connection. Borders, or Borders Group, Inc., started out as a single used bookstore in Ann Harbor, Michigan. Borders was founded by Louis and Tom Borders in 1971. In 1975, Louis and Tom bought out stock of Wahr’s an eighty year old bookstore that was closing its doors and moved their store to a much larger location. Borders was bought out by Kmart in 1992. Kmart tried to expand Borders into Canada, but failed because regulations could not be met. Borders did...
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...With reference to a service organisation of your choice, critically evaluate how the following approaches to service marketing management – namely, process improvement, human aspects and managing resource capacity can potentially contribute to the success of a service organisation. Your evaluation of processes, human aspects and resource capacity should be critiqued with specific reference to purpose, application and limitations AND with regard to how the effective management of these areas might contribute to the success of the selected service organisation. Word count: 2726 (excluding appendix) Introduction This paper aims to evaluate the marketing management theories of process, human aspects and resource capacity, critiqued with specific reference to purpose, application and limitations, and with regard to how the effective management of these areas might contribute to the success of EasyJet. Then it will conclude with their contribution to the success and development of the organisation. Outline of EasyJet EasyJet is one of the most successful low cost airlines in Europe, and the UK’s largest airline, carrying over 55m passengers a year. Sir Stelios Haji-Ioannou founded it in 1995, with the vision of creating a customer focused brand that would revolutionise the concept of air travel. More than fifteen years on, EasyJet is Europe’s leading airline. (EasyJet plc. 2015) Process Improvement Purpose The purpose of process improvement is to apply theories...
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...Approaches to Marketing Management In common parlance, marketing is the process of selling something at a shop or market place. To some it has meant the study of individual commodities and their movement in the more place; to some it has meant the study of institutions and personas who move these products or study of the economic contribution; whereas to product movements and the way eh perosnas involved move them. Thus the study of marketing has, thus, been approached in more than one ways. However, these different approaches have immensely contributed to the evolution of the modern approach and the concept of marketing. To facilitate the study, these different approaches may be broadly classified as the commodity approach, the institutional approach and the managerial approach. Besides these well recognized and established approaches, of late, the recently developed societal and systems approaches have been attracting considerable attention. A brief description of these different approaches is given below, reflectionghtie respective focus and characteristics. (A) Commodity Approach : In the commodity approach to the study of marketing, the focus of study is a specific commodity, say, wheat, rice, approach, the subject matter of discussion around the specific commodity selected for the study; nature and extent of demand, the distribution channels used and the function, such as buying , selling , financing, advertising, storage repeating such studies in case of different...
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...market-based strategy. A market segment is a purchase behaviors and different descriptive characteristics and specific group of customers with distinctive customer needs (Baker M.J, 1995) By categorizing markets into sub sectors, targeting marketing effort in such a way as to meet the other requirement and technical requirements of each of these, organizations may be able to secure big competitive position than if they attempted to satisfy the fundamental requirements of the market as a whole. In market segmentation there are four criteria that have to be satisfied in order for market segmentation to be effective. A market segment should be accessible, identifiable, substantial, and stable. In Identifiable, there should be indicators of observable that enable the segment to be defined and quantified (Baker M.J, 1995). Accessible, that is, it should be probable to target specifically the segment using distribution channels and existing communication. In Substantial, that the segment should be of enough size to make the effort involved in segmentation worthwhile. In the Stable, the segment there should be capitalized by sufficient time on the investment implicated in segmentation (Baker M.J, 1995). Brief Discussion: Using a variety of philosophical approaches markets can be...
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...Identifying market segments is critical to the successful development of management strategies based on marketing mix components (i.e., product, distribution, price, and promotion)(Kyle, 2002). By categorizing markets into sub sectors, targeting marketing effort in such a way as to meet the technical and other requirements of each of these, organizations maybe able to secure greater competitive position than if they attempted to satisfy the general requirements of the market as a whole. There are four criteria that are crucial to an effective marketing segmentation. A market segment should be identifiable, substantial, accessible and stable. Identifiable, at which there should be observable indicators that enable the segment to be defined and quantified. Substantial, meaning that the segment should be of enough size to make the effort involved in segmentation worthwhile. Accessible, that is, it should be probable to target specifically the segment using existing communication and distribution channels. Stable, so that after classification of the segment there should be sufficient time to capitalize on the investment implicated in segmentation. (Baker, 1995) Markets can be segmented using a variety of philosophical approaches. In terms of operationalizing these approaches, demographic approaches, geographic approaches, socio-economic approaches and psychographic approaches are commonly used. There are a number of demographic-related bases for segmenting markets such as age...
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...Customer value-based pricing strategies: why companies resist Andreas Hinterhuber Andreas Hinterhuber is based at Hinterhuber and Partners, Innsbruck, Austria. Introduction Pricing has a huge impact on profitability. Pricing strategies vary considerably across industries, countries and customers. Nevertheless, researchers generally concur that pricing strategies can be categorised into three groups: 1. cost-based pricing; 2. competition-based pricing; and 3. customer value-based pricing. Of these, customer value-based pricing is increasingly recognised in the literature as superior to all other pricing strategies (Ingenbleek et al., 2003). For example, Monroe (2002, p. 36) observes that: ‘‘ . . . the profit potential for having a value-oriented pricing strategy that works is far greater than with any other pricing approach’’. Similarly, Cannon and Morgan (1990) recommend value pricing if profit maximisation is the objective, and Docters et al. (2004, p. 16) refer to value-based pricing as ‘‘one of the best pricing methods’’. Practitioners have also recognised the advantages of value-based pricing strategies. Several companies have successfully adopted such strategies. These include pharmaceutical companies such as Sanofi-Aventis, information technology companies such as SAP and Vendavo, wireless internet service providers such as the Australian company Xone, airlines such as Lufthansa, vehicle manufacturers such as BMW, and biotech companies such as Tigris Pharmaceuticals...
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... What constitutes good marketing research? 2. What are the best metrics for measuring marketing productivity? 3. How can marketers assess their return on investment of marketing expenditures? CHAPTER SUMMARY 1. Companies can conduct their own marketing research or hire other companies to do it for them. Good marketing research is characterized by the scientific method, creativity, multiple research methods, accurate model building, cost-benefit analysis, healthy skepticism, and an ethical focus. 2. The marketing research process consists of defining the problem, decision alternatives, and research objectives, developing the research plan, collecting the information, analyzing the information, presenting the findings to management, and making the decision. 3. In conducting research, firms must decide whether to collect their own data or use data that already exist. They must also choose a research approach (observational, focus group, survey, behavioral data, or experimental) and research instruments (questionnaire, qualitative measures, or technological devices). In addition, they must decide on a sampling plan and contact methods (by mail, by phone, in person, or online). 4. Two complementary approaches to measuring marketing productivity are: (1) marketing metrics to assess marketing effects and (2) marketing-mix modeling to estimate causal relationships and measure how marketing activity affects outcomes. Marketing dashboards are a structured...
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...meant to be broken, else changed. In this fast moving, ever transforming world the only thing permanent is 'change'. With the onset of technology the rules of marketing have obviously changed, purpose of marketing remaining the same though. The masses are growing smarter and it takes a lot more to trigger an interest from their end. With the onslaught of increased number of communication mediums, people's lives have been infiltrated more than ever before. Apart from the mass media, there are several ways of interacting with potential customers. And here is where the problem arises. People feel that their privacy is being regularly compromised when they see that they are interrupted and bothered with advertisements which they are not even interested in. Traditional marketing rules proactively tries to engage a person without his/her consent. Not that this is a bad thing, because this system has been working for decades now and shall continue to do so in the near future. Difference being that since the number of communication mediums have increased, the frequency of engagement of people has increased drastically. That could work negatively. Specific to the Hubspot case; the crux of the Hubspot company was to capitalize on the positives of inbound marketing strategies and prove that the traditional outbound marketing approach was in for a change, completely. The difference in plan of approach was that Hubspot as a company did not advertise their offerings directly to all target...
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...Marketing approaches – Archi and Building courses Guiding principles 1. Maximum impact with minimum resources a. Utilise social media b. Promotional videos c. Utilise alumni (current and past students) 2. Minimise own costs d. Sponsorship e. Joint events with non-competitors/synergies with professional bodies f. Promote in conjunction with conference attendance, especially local g. Everyone to become an ambassador h. Other ideas? 3. Identify strengths and weaknesses i. What makes our product unique? j. Why would others choose our product? Which aspects should be promoted? How to tell others that the profession is reasonably recession-proof (even if the overall economy is not doing well)? k. What are we doing well? l. Where do we need to make improvements? How to do this? 4. Increase retention rates m. internal marketing n. addressing specific needs of international students o. stream orientation – making sure streams selected for the right reasons Who can provide advice on effective marketing approaches 1. Stakeholders a. Our own students b. Recent graduates c. Alumni d. Employers e. Careers teachers f. Course Advisory Committee g. Staff/course coordinators brainstorming session 2. Marketing people h. brief them about our product i. get access to branding information j. get...
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...image (the way it is promoted) and, of course, the price which should be charged. These are some of the ingredients which a marketing manager must mix together when optimising a limited amount of resources. What is the best mix? A marketing manager has to juggle resources and decide on the best marketing mix. Should money be spent or forfeited on: reduced prices? Improved products? New delivery trucks? Or maybe invest all your money in a high risk TV advertising campaign? Did you recognise the 4 Ps just there? In 1960 Jerome McCarthey presented the 4 Ps to the world. Since then marketing managers around the world have become familiar with them. Can you recall them? In addition to the 4 Ps, there are other approaches to the mix. These are explored under 'Different Approaches' subtopic as shown in the title map. Let's look at each of the 4 Ps briefly. Product - this means the product's (or service's) quality, the functions, the features and benefits of its design plus packaging, guarantees and level of after-sales service. Choices can be made about any of these aspects. Price includes recommended prices to end-user customers, distributor's trade prices, cash discounts, bulk discounts, terms of credit. Place means where and when the customer buys and consumes the product or service. Place is sometimes referred to as the marketing channels, physical distribution, logistics or location. Promotion means the promotions mix or the communications mix. This mix...
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...MARKETING ESSAY NOTES Q. Application of the marketing mix is no longer relevant for firms adopting a contemporary approach to marketing. What is marketing mix ?? What is contemporary approach? The main funda was to please the customer, making him the “king” and then deciding what is going to please him and how to earn his loyalty. Steps to do this 1. Prioritize the marketing concept acc to the market through R&D and fulfilling the needs and desires of the customer. 2. This way the products& services can be quite welcoming in the market 3. Effective & efficient promotion techniques to attack the desired target market. The contemporary approaches can be subdivided into the following types :- * Relationship Marketing * Business / Industrial Marketing * Social Marketing Relationship marketing is all about building healthy and long lasting relationships between the firm and its customers and then to efficiently leverage this customer base using suitable marketing techniques. This approach has been used since the 1960s and is followed till today. Business Marketing, as the name implies, is applicable to the B2B (Business to Business) domain. In this context the marketing takes place between businesses or organizations. Consequently the marketing efforts have to be altered in a way to suit corporate customer needs as compared to end customer needs. This approach has been used since the 1980s and is followed till today. Social...
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...Marketing is about communicating the value of a product, service or brand to customers or consumers for the purpose of promoting or selling that product, service, or brand. The oldest – and perhaps simplest and most natural form of marketing – is 'word of mouth' (WOM) marketing, in which consumers convey their experiences of a product, service or brand in their day-to-day communications with others. These communications can of course be either positive or negative. In for-profit enterprise the main purpose of marketing is to increase product sales and therefore the profits of the company. In the case of nonprofit marketing, the aim is to increase the take-up of the organization's services by its consumers or clients. Governments often employ social marketing to communicate messages with a social purpose, such as a public health or safety message, to citizens. In for-profit enterprise marketing often acts as a support for the sales team by propagating the message and information to the desired target audience. Marketing techniques include choosing target markets through market analysis and market segmentation, as well as understanding consumer behavior and advertising a product's value to the customer. From a societal point of view, marketing provides the link between a society's material requirements and its economic patterns of response. Marketing satisfies these needs and wants through the development of exchange processes and the building of long-term relationships...
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...different approaches to the study of marketing. These approaches explain clearly the mechanism and concept of marketing. These approaches are Commodity Approach, Institutional Approach, Functional Approach and Decision Making Approach. (1) Commodity Approach or Product Approach: This approach refers to the study of a product in detail. The marketing situation of each product chosen for study is examined from such viewpoints as sources and conditions of supply, producer marketing organisations, policies, different middlemen (wholesaler’s 6f retailers etc.) who take part in distributing the product. Problems with regard to a particular product are studied in detail under this approach. Products of any nature e.g. agricultural products wheat, rice, maize, etc., industrial products like machine tools, lathe-machines, generators, oil engines, etc., and any other products can be covered under this study. In practice, this approach tends to be repetitive and time consuming. (2) Institutional Approach: This approach relates to various marketing institutions viz., wholesalers, retailers etc., engaged in marketing. In applying this approach, a thorough study with regard to a particular middleman is undertaken. For example, in retailing, nature and significance of retailing in terms of functions and services performed and rendered by retail institutions like departmental stores, multiple shops, mail order houses etc. Besides wholesalers and retailers, other marketing institutions...
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