Marketing Concepts Data Data are any facts, numbers, or text that can be processed by a computer. Today, organizations are accumulatingvast and growing amounts of data in different formats and different databases. This includes: operational or transactional data such as, sales, cost, inventory, payroll, and accounting nonoperational data, such as industry sales, forecast data, and macro economic data meta data - data about the data itself, such as logical database design or data dictionary definitions. Data Warehouses Dramatic advances in data capture, processing power, data transmission, and storage capabilities are enabling organizations to integrate their various databases intodata warehouses. Data warehousing is defined as a process of centralized data management and retrieval. Data warehousing, like data mining, is a relatively new term although the concept itself has been around for years. Data warehousing represents an ideal vision of maintaining a central repository of all organizational data. Centralization of data is needed to maximize user access and analysis. Dramatic technological advances are making this vision a reality for many companies. And, equally dramatic advances in data analysis software are allowing users to access this data freely. The data analysis software is what supports data mining. Data Mining : Data mining, the extraction of hidden predictive information from large databases, is a powerful new technologywith great potential to help companies focus on the most important information in their data warehouses. Data miningtools predict future trends and behaviors, allowing businesses to make proactive, knowledge-driven decisions. Theautomated, prospective analyses offered by data mining move beyond the analyses of past events provided byretrospective tools typical of decision support systems. Data mining tools can answer business questions thattraditionally were too time consuming to resolve. They scour databases for hidden patterns, finding predictiveinformation that experts may miss because it lies outside their expectations.Decider : The person who ultimately determines any part of or the entire buying decision.The individual with the power and/or financial authority to make the ultimate choice regarding whichproduct to buy.Declining : The final stage of market development where annual industry revenues are steadilydeclining because of the saturation of the market, the decrease in the market size, or the due tothe introduction of a product or a technology that serves as a replacement.
Defending Market Share : After Capturing Value, a company must work at Defending Share. There are manydifferent tactics incumbents can use to attack. Some companies such as Safaricom engage inprice wars to stave off competetion, although it is not advisable. (Safaricom, 2010) Moreeffective defense strategies include: position defense, flank defense, preemptive defense,counteroffensive defense, mobile defense, and contraction defense. Companies like Danfrosshave used contraction to defend against market share with much success.Delight Needs : Delight needs are simple to understand. Every marketing company needs to ensure thatthey are meeting the customers needs and that they are not going to disappoint them. Delightneeds are that of the customer and what they are going to be looking for, and any extras whichthey are going to need to have. Within marketing the company has to make the customer thinkthey need to product that they are selling. Sure, not everyone is going to need to have the newiPhone, but the apple company advertises to make the customers think that they will be missingout if they dont buy one, and therefore the marketing is going to be fulfilling the delight needsthat the customer has.Demand : A demand forecast is the prediction of what will happen to your companys existing product sales. It would be bestto determine the demand forecast using a multi-functional approach. The inputs from sales and marketing, finance, andproduction should be considered. The final demand forecast is the consensus of all participating managers. You may alsowant to put up a Sales and Operations Planning group composed of representatives from the different departments thatwill be tasked to prepare the demand forecast.Demographic Environment : Demography is the statistical and mathematical study of the size, composition, and spatial distribution of humanpopulations and how these features change over time. Data are obtained from a census of the population and fromregistries: records of events like birth, deaths, migrations, marriages, divorces, diseases, and employment. To do this,there needs to be an understanding of how they are calculated and the questions they answer which are included in thesefour concepts: population change, standardization of population numbers, the demographic bookkeeping equation, andpopulation composition.Demographic Segmentation : Demographic segmentation is a marketing strategy that involves dividing a broad target market into subsets ofconsumers who have common needs and applications for the relevant goods and services. Depending on the specificcharacteristics of the product, these subsets may be divided by criteria such as age and gender, or other distinctions, likelocation or income. Marketing campaigns can then be designed and implemented to target these specific customersegments.Deposition :
Method of pretrial discovery that consists of a stenographically transcribed statement of a witness under oath,in response to an attorneys questions, with opportunity for the opposing party or his attorney to be present and tocross-examine. Such a statement is the most common form of discovery and may be taken of any witness (whetheror not a party to the action). When taken in the form described, it is called an oral deposition. Depositions may alsobe taken upon written interrogatories , where the questions are read to the witness by the officer who is taking thedeposition.Derived Brand : In this case the supplier of a key component, used by a number of suppliers of the end-product, may wish to guarantee its own position by promoting that component as a brand in its ownright.Differentiated Pricing : Practice of selling goods or services at different prices to different buyers, even though sales costs are thesame for all the transactions. Buyers may be discriminated against on the basis of income, ethnicity, age, orgeographic location. For price discrimination to succeed, other entrepreneurs must be unable to purchase goods at thelower price and resell them at a higher one.Direct Marketing : Direct marketing is just what it sounds like - directly reaching a market (customers and potential customers)on a personal (phone calls, private mailings) basis, or mass-media basis (infomercials, magazine ads, etc.).Direct marketing is often distinguished by aggressive tactics that attempt to reach new customers usually by means ofunsolicited direct communications. But it can also reach out to existing or past customers. A key factor in directmarketing is a "call to action." That is, direct marketing campaigns should offer an incentive or enticing message toget consumers to respond (act).Direct marketing involves the business attempting to locate, contact, offer, and make incentive-based informationavailable to consumers.Dissonance Reducing Buying Behavior: Dissonance-reducing buying behaviour occurs when the consumer is highly involved but sees little differencebetween brands. This is likely to be the case with the purchase of a lawn mower or a diamond ring. After making apurchase under such circumstances, a consumer is likely to experience the dissonance that comes from noticing thatother brands would have been just as good, if not slightly...Distributor , Dealer , Retailer : An entity that buys noncompeting products or product lines, warehouses them, and resells them to retailers ordirect to the end users or customers. Most distributors provide strong manpower and cash support tothe supplier or manufacturers promotional efforts. They usually also provide a range of services (such asproduct information, estimates, technical support, after-sales services, credit) to their customers.
Individual or firm that buys goods from a producer or distributor for wholesale and/or retailreselling. Unlike a distributor, a dealer is a principal and not an agent. A business or person that sells goods to the consumer, as opposed to a wholesaler or supplier, whonormally sell their goods to another business.Durable Goods : In economics, a durable good or a hard good is a good that does not quickly wear out, or more specifically, onethat yields utility over time rather than being completely consumed in one use. Items like bricks could be consideredperfectly durable goods, because they should theoretically never wear out. Highly durable goods such as refrigerators, cars, or mobile phones usually continue to be useful for three or more years of use, so durable goodsare typically characterized by long periods between successive purchases.E-commerce : Electronic commerce, commonly known as e-commerce or e-comm, is the buying and sellingof products or services over electronic systems such as the Internet and other computer networks. Electronic commercedraws on such technologies as electronic funds transfer, supply chain management, Internet marketing, online transactionprocessing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.Modern electronic commerce typically uses the World Wide Web at least at one point in the transactions life-cycle,although it may encompass a wider range of technologies such as e-mail, mobile devices and telephones as well.Economic Environment : The totality of economic factors, such as employment, income, inflation, interestrates, productivity, and wealth, that influence the buying behavior of consumers and institutions. An areaof economics that studies the economic impact of environmental policies. Environment economistsperform studies to determine the theoretical or empirical effects of environmental policies on theeconomy. This field of economics helps users design appropriate environmental policies and analyze theeffects and merits of existing or proposed policies.Education : You are able to perceive accurately, think clearly and act effectively to achieve self-selected goalsand aspirations. Education, therefore, is more properly defined as a process of cognitive cartography,mapping your experiences and finding a variety of reliable routes to optimal states of mind when you findyourself in non-optimal states.Endorsed Brand and Sub Brand : A sub-brand is a brand with its own name that uses the name of its parent brand in some capacity to bolsterequity. In the case of downscale offerings, the role of sub-brands is to help managers differentiate new offerings from theparent brand while using the parent‟s equity to influence consumers.The idea is both to maintain the parent‟s credibility and prestige regardless of how the sub-brand performs and to protectthe original brand from cannibalization.
Environmental Scanning : Environmental scanning is one component of the global environmental analysis. Environmental monitoring,environmental forecasting and environmental assessment complete the global environmental analysis. Environmentalscanning refers to the macro environment. The global environment refers to the macro environment which comprisesindustries, markets, companies, clients and competitors. Consequently, there exist corresponding analyses on the micro-level. Suppliers, customers and competitors representing the micro environment of a company are analyzed within theindustry analysis. Environmental scanning can be defined as „the study and interpretation of the political, economic, socialand technological events and trends which influence a business, an industry or even a total market.Evaluating Channel Members : The producer must continuously evaluate each channel member’s performance against standards such assales quotas, average inventory levels, customer delivery time, treatment of damaged and lost goods. Cooperation incompany promotion and training programs, and service to the customer, Intermediaries having excellent performanceshould be recognized and rewarded by the company. Intermediaries having unsatisfactory performance should behelped, if not possible, replaced.Evaluating the major alternatives:- Using economic criteria, a company compares the likely sales, costs, and profitability ofdifferent channel alternatives and selects the best one among it. Thus, to be considered , achannel involving long-term commitments should be greatly superior on economic andcontrol grounds.Evaluation of Alternatives At this time the consumer compares the brands and products that are in their evoked set. Theevoked set refers to the number of alternatives that are considered by consumers during the problem-solving process. Sometimes also known as consideration , this set tends to be small relative to the totalnumber of options available. How can the marketing organization increase the likelihood that their brandis part of the consumers evoked set? Consumers evaluate alternatives in terms of the functional andpsychological benefits that they offer. The marketing organization needs to understand what benefitsconsumers are seeking and therefore which attributes are most important in terms of making a decision.It also needs to check other brands of the customer’s consideration set to prepare the right plan for itsown brand.Event : 1. Occurrence happening at a determinable time and place, with or without the participation ofhuman agents. It may be a part of a chain of occurrences as an effect of a preceding occurrence and asthe cause of a succeeding occurrence.2. Arrival of a significant point in time. In project management, an event marks the point in time whena task is completed. See also events.Exclusive Distribution : Situation where suppliers and distributors enter into an exclusive agreement that only allows thenamed distributor to sell a specific product. For example, Apple had an exclusive distribution deal withAT&T to provide the iPhone to consumers.
Exclusive Distribution : Retail selling strategy typically used by manufacturers of high-priced, generally upscalemerchandise, such as cars or jewelry, whereby manufacturers grant certain dealers exclusive territorialrights to sell the product. The retailer benefits from the lack of competition, and the manufacturer benefitsfrom a greater sales commitment on the part of the retailer. Additionally, exclusive distribution gives themanufacturer greater control over the way the product is merchandised. See also open distribution.Exclusivity : Contract term in which one party grants another party sole rights with regard to a particularbusiness function. Some advertising networks demand exclusivity. Some do not demand exclusivity, butoffer a higher rate for an exclusive deal than the standard rate given to non-exclusive deals.Expanding Market Share : The percentage of an industry or markets total sales that is earned by a particular company over aspecified time period. Market share is calculated by taking the companys sales over the period anddividing it by the total sales of the industry over the same period. This metric is used to give a generalidea of the size of a company to its market and its competitors.Expanding the Total Market : There are five significant strategies to consider when planning your marketing approach. Position yourself as amarket leader, challenger, follower, niche marketer or form an alliance to attack the market with increased power.Consider a mix of strategies to make the most of your strengths and take advantage of your competitors weaknesses.Experience : 1.a particular instance of personally encountering orundergoing something: My encounter with thebear in thewoods was a frightening experience.2.the process or fact of personally observing, encountering, orundergoing something: business experience3.the observing, encountering, or undergoing of thingsgenerally as they occur in the course of time: to learn from experience; the range of human experience.4.knowledge or practical wisdom gained from what one hasobserved, encountered, or undergone: a manof experience.5.Philosophy . the totality of the cognitions given byperception; all that is perceived, understood, andremembered.Experimental Research : Experimental research is guided by a hypotheses (or several hypothesis) that states an expected relationshipbetween two or more variables. An experiment is conducted to support or disconfirm this experimental hypothesis.For instance, much of this authors research has been involved with the physiological effects of step training with andwithout handweights. With this type of experimental research, I have randomly selected the group of subjects,decided the exercise program (step training with handweights, step training without handweights, and a control groupwhich remained physically active but did no step training), tried to control all relevant factors (e.g. no other aerobicprograms, no change in diet, no additional resistance training, etc.), and then measured the effect of the step trainingwith and without handweights on a number of variables (such as cardiorespiratory fitness, muscular strength, body
composition, blood lipids and lipoproteins, etc.). Experimental research, although very demanding of time andresources, often produces the soundest evidence concerning hypothesized cause-effect relationships (Gay, 1987).Failure of New Product : Despite years of research and huge capital being pumped in to understanding theconsumer, making a launch successful is still a difficult task. The new product largely dependson the product quality and the marketing tactics of the firm, there are many occasions were theproduct failed miserably even after using the best technology and quality the reason is that thenew product is not worth for the customers. The prime factor for the new product success is -customer value. Value is what the customer thinks is value. The major reasons for productfailure are 1. Faulty product idea: 2. Distribution related problems: 3. Poor timing of launch: 4. Improper Positioning:These are some problems causing new product failure. The watchwords for new product successare RIGHT PRODUCT TO THE RIGHT CUSTOMER AT RIGHT TIME.Family : A family includes a householder and one or more people living in the same household who are related to thehouseholder by birth, marriage, or adoption. All people in a household who are related to the householder are regardedas members of his or her family. A family household may contain people not related to the householder, but thosepeople are not included as part of the householder’s family in census tabulations. Thus, the number of familyhouseholds is equal to the number of families, but family households may include more members than do families. Ahousehold can contain only one family for purposes of census tabulations. Not all households contain families since ahousehold may comprise a group of unrelated people or one person living alone."Family Size :The number of people living in the same house as a child.(including relatives and otherhousehold members.) the big family needs more food than a small one.Fast Moving Consumer Goods (FMGS): A type of good that is consumed every day by the average consumer. The goods that comprise thiscategory are ones that need to be replaced frequently, compared to those that are usable for extendedperiods of time. While CPGs represent a market that will always have consumers, it is highly competitivedue to high market saturation and low consumer switching costs.Final Price : Market value is a concept distinct from market price, which is “the price at which one can transact”, while marketvalue is “the true underlying value” according to theoretical standards. The concept is most commonly invokedin inefficient markets or disequilibrium situations where prevailing market prices are not reflective of true underlyingmarket value. For market price to equal market value, the market must be information ally efficient and rational
expectations must prevail. Market value is also distinct from fair value in that fair value depends on the parties involved,while market value does not. For example, IVS currently notes fair value "requires the assessment of the price that is fairbetween two specific parties taking into account the respective advantages or disadvantages that each will gain from thetransaction. Although market value may meet these criteria, this is not necessarily always the case.Five winning Strategies : The benefits of a planned marketing strategy are numerous. Business owners often rely solely on their intuitionto make business decisions. While this informal knowledge is important in the decision making process, it may notprovide you with all the facts you need to achieve marketing results. A marketing strategy will help you in definingbusiness goals and develop activities to achieve them.Difficulty: AverageHeres How: 1. Describe your companys unique selling proposition (USP). 2. Define your target market. 3. Write down the benefits of your products or services. 4. Describe how you will position your products or services. 5. Define your marketing methods. Will you advertise, use Internet marketing, direct marketing, or public relations?Flank Defence : Protection of a work against undue exposure to an enemys direct fire, by means of the fire from other works, sweepingthe ground in its front. 1. Avoid areas of likely confrontation. A flanking move always occurs in an uncontested area. 2. Make your move quickly and stealthfully. The element of surprise is worth more than a thousand tanks. 3. Make moves that the target will not find threatening enough to respond decisively to.Focus Group Research : In the world of marketing, focus groups are seen as an important tool for acquiring feedback regarding newproducts, as well as various topics. In particular, focus groups allow companies wishing to develop, package, name, ortest market a new product, to discuss, view, and/or test the new product before it is made available to the public. This canprovide invaluable information about the potential market acceptance of the product.Focus Group is an interview, conducted by a trained moderator among a small group of respondents. The interview isconducted in an unstructured and natural way where respondents are free to give views from any aspect.Formal Marketing Research :
Marketing research involves conducting research to support marketing activities, and the statistical interpretationof data into information. This information is then used by managers to plan marketing activities, gauge the nature of afirms marketing environment and attain information from suppliers. Marketing researchers use statistical methods suchas quantitative research, research, hypothesis, Chi-squared tests, linear regression, correlations, frequencydistributions, poison distributions, binomial distributions, etc. to interpret their findings and convert data into information.The marketing research process spans a number of stages, including the definition of a problem, development of aresearch plan, collection and interpretation of data and disseminating information formally in the form of a report. The taskof marketing research is to provide management with relevant, accurate, reliable, valid, and current information.A distinction should be made between marketing research and market research. Market research pertains to researchin a given market. As an example, a firm may conduct research in a target market, after selecting a suitable marketsegment. In contrast, marketing research relates to all research conducted within marketing. Thus, market research is asubset of marketing research.Four C’s : Marketing in this day and age needs to be a two-way communication. In a professional service business, itmay make more sense to focus on the four C‟s of marketing rather than the more traditional four P‟s. They are muchmore customer oriented – and you need to think like your clients to do your best marketing.1. Customer Value You can no longer sell whatever you want to. You can only sell what people specifically want to buy.Understand your client‟s needs and wants through ongoing survey and feedback so that you can provide massivevalue back to them.2. Convenience With the Internet and increased competition, the availability of similar services is infinite. Thinkconvenience to buy. Make it very convenient for consumers to acquire your products and services. Many websitesare set up to sell online 24/7 so that when the client is ready to buy, they don‟t have to wait.3. Cost Understand consumer‟s costs to satisfy their wants and needs. Determine how customers willrespond to paying your sales prices by doing some market research. Are your price points set at the level wherecustomers are willing to buy?4. Communication Forget Promotion; the new word is Communication. Mass marketing no longer works. Two-wayconversation is essential. Your marketing communication may need to be more of a relationship-based process.In today‟s economy, it‟s very easy for consumers to take their dollars elsewhere. If you can understand your client‟sneeds and wants through ongoing survey and feedback, you will be able to provide lots of value back to them.To promote yourself effectively, you need to stand in your clients and shoes, and look at things from theirperspective. If you practice these four C‟s you‟ll have a better chance of connecting with your potential clients.Full cost or Markup Pricing : Cost-plus pricing is used primarily because it is easy to calculate and requires little information.Information on demand and costs is not easily available, managers have limited knowledge as far asdemand and costs are concerned. This additional information is necessary to generate accurate estimatesof marginal costs and revenues. However, the process of obtaining this additional information isexpensive. Therefore, cost-plus pricing is often considered the most rational approach in maximizingprofits. This approach relies on arbitrary costs and arbitrary markups.
Full Market Coverage : Method for evaluating the various segments of the marketplace and deciding which segments to cover in themarketing of a particular product. Marketers generally adopt one of the following three general market coveragestrategies:(1) undifferentiated marketing, which focuses on what is common in consumer needs in the marketplace and iseffected by presenting one product for all markets or presenting all of a companys products in one market;(2) differentiated marketing, wherein several market segments are targeted for marketing campaigns with separatepromotional offers for each market;(3) concentrated marketing, which focuses on one small part of the marketplace and is effected by a concentratedmarketing promotion that seeks to gain a large share of the small market.Gain & Risk Sharing Prices : A way of selecting a final price for a complex and high value product or service. Sometimes buyersmay resist accepting a seller’s proposal because of a high-perceived risk. The seller has the option ofoffering to absorb part or all of the risk if he does not deliver the full promised value.Gatekeepers : In marketing, your goal is to deliver a message to someone, usually a target audience or a business. When itcomes to delivering your message to a business, you typically need the ear of the business owner or an executive, who isthe key individual. In many instances, there‟s a person that sifts through everyone who wants to talk to the owner orexecutive -- that person is the gatekeeper. His job is to quickly dissect attempts to communicate with the key individual,and give that person information that has a good chance to help the business, while ignoring unhelpful information.Gender : Marketers often make generalizations about groups of people in order to efficiently createÂ effectiveadvertising. Yet, in an age that strives to promote equality between males and females, the line is blurred as towhether it is appropriate to make gender generalizations. For instance, it is not uncommon for minivans to bemarketed exclusively to women, while sports cars are marketed primarily to men. Is this sexist, or a demographicreality that more men purchase sports cars than women? It is also no coincidence that commercials for cleaningproducts are most often targeting at female consumers. Is this fair? There are men who do their fair share ofhousehold chores. While a lot of folks would agree it is not fair that men and women are portrayed this way, for themarketer, it makes perfect sense.General Need Description : 1. General: A motivating force that compels action for its satisfaction. Needs range from basic survival needs(common to all human beings) satisfied by necessities, to cultural, intellectual, and social needs (varying from place toplace and age group to age group) satisfied by necessaries. Needs are finite but, in contrast, wants (which spring fromdesires or wishes) are boundless. See also Maslows hierarchy of needs. 2. Marketing: A driver of human action which marketers try to identify, emphasize, and satisfy, and around whichpromotional efforts are organized.Geodemographic Segmentation :
It refers to segmenting the population by recognising that people generally live in close proximity to other peoplewho are demographically similar. The clustering is based on the life stage and wealth characteristics of the population.LandScape therefore allows the marketer to objectively differentiate between the diverse types of people in thepopulation, from those in metropolitan areas to those found in rural and semi-rural locations..Geographic Segmentation : Market segmentation strategy whereby the intended audience for a given product is divided according togeographic units, such as nations, states, regions, counties, cities, or neighborhoods. Marketers will tailor marketingprograms to fit the needs of individual geographic areas, localizing the products, advertising, and sales effort togeographic differences in needs and wants. Marketers will also study the population density or regional climate as factorsof geographic segmentation..Geographical Pricing : Products requiring marketers to pay higher costs that are affected by geographic area in which a product issold may result in adjustments to compensate for the higher expense. The most likely cause for charging a differentprice rests with the cost of transporting a product from the supplier’s distribution location to the buyer’s place ofbusiness. If the supplier is incurring all costs for shipping then they may charge a higher price for products in orderto cover the extra transportation costs. For instance, shipping products by air to Hawaii may cost a Los Angeles,California manufacturer a much higher transportation cost than a shipment made to San Diego.Transportation expense is not the only cost that may raise a product’s price. Special taxes or tariffs may be imposedon certain products by local, regional or international governments which a seller passes along in the form of higherprices.Goods : 1. Commerce: An inherently useful and relatively scarce tangible item(article, commodity, material, merchandise, supply, wares) producedfrom agricultural, construction, manufacturing, or mining activities. According to theUN Convention On Contract For The International Sale Of Goods, the term good does not include(1) items bought for personal use, (2) items bought at an auction or foreclosure sale, (3) aircraft or oceangoingvessels.2. Economics: A commodity, or a physical, tangible item that satisfies some human want or need, or something thatpeople find useful or desirable and make an effort to acquire it. Goods that are scarce (are in limited supply inrelation to demand) are called economic goods, whereas those whose supply is unlimited and that requireneither payment nor effort to acquire, (such as air) are called free goods.Graphical Method : Correspondence analysis, multiple correspondence analysis, preference mapping, and multidimensionalpreference analysis are descriptive statistical methods that generate graphical displays from data matrices. These methodsare used by marketing researchers to investigate relationships among products and individual differences in preferencesfor those products. The end result is a two- or three-dimensionalscatter plot that shows the most salient information in the data matrix. This chapter describes these methods, showsexamples of the graphical displays, and discusses marketing research applications.Green Environment:
Green marketing focuses on the green marketing efforts companies use, including corporate social responsibilityplans and sustainability efforts. Many consumers are environmentally conscious, seeking eco-friendly products andservices from organizations that are socially responsible. These articles look at all of the implications of green marketing,from product modification and processing to packaging and green advertising.Green Marketing : According to the American Marketing Association, green marketing is the marketing of products that arepresumed to be environmentally safe. Thus green marketing incorporates a broad range of activities, including productmodification, changes to the production process, packaging changes, as well as modifying advertising. Yet defining greenmarketing is not a simple task where several meanings intersect and contradict each other; an example of this will be theexistence of varying social, environmental and retail definitions attached to this term. Other similar terms usedare Environmental Marketing and Ecological Marketing.Group Pricing : In the United States, a group purchasing organization (GPO) is an entity that is created to leverage the purchasingpower of a group of businesses to obtain discounts from vendors based on the collective buying power of the GPOmembers.Many GPOs are funded by administrative fees that are paid by the vendors that GPOs oversee. Some GPOs are funded byfees paid by the buying members. Some GPOs are funded by a combination of both of these methods. These fees can beset as a percentage of the purchase or set as an annual flat rate. Some GPOs set mandatory participation levels for theirmembers, while others are completely voluntary. Members participate based on their purchasing needs and their level ofconfidence in what should be competitive pricing negotiated by their GPOs.Growth : An increase in the demand for a particular product or service over time. Market growth can be slowif consumers do not adopt a high demand or rapid if consumers find the product or service useful for the price level. Forexample, a new technology might only be marketable to a small set of consumers, but as the price of the technologydecreases and its usefulness in every day life increases, more consumers could increase demand.Habitual Buying Behavior : As the name suggests habitual buying behavior in consumers results when the products in question havefew or no significant and major perceived differences and as such the consumer goes for and purchases the productthat he/she has been using for sometime without having to think of switching to another brand. It‟s a sort of a habit inthat when the consumer is presented with a choice between two substitute products that have the same featuresand characteristics, he/she will go for the one that he has been using before as he is familiar with it. Habitual buyingbehavior can apply to products like bread, margarine, sugar etc.Heterogeneity or Variability : Fundamental characteristic of services which results in variation from one service to another, or variation inthe same service from day-to-day or from customer-to-customer. Heterogeneity makes it hard for a firmto standardize the quality of its services. Opposite of homogeneity.Hierarchy of Effects Model : Marketing term for the sequence of five steps a consumer passes through from the initial exposure toa product or advertisement to the purchase decision :
(1) awareness, (2) interest, (3) evaluation, (4) conviction, and (5) purchase.Subsequent objectives may focus on moving prospects to higher levels in the pyramid to elicit desired behavioralresponses such as associating feelings with the brand, trial, or regular use etc. it is easier to accomplish adobjectives located at the base of the pyramid than the ones towards the top. The percentage of prospectivecustomers will decline as they move up the pyramid towards more action oriented objectives, suchas regular brand use.History : The concept of marketing that we now see has more to do with developments during the industrial revolutionof the 18th and 19th centuries. This was a period of rapid social change driven by technological and scientificinnovation (see BBC history website). One result was that for the first time the production of goods was separatedfrom their consumption. Mass production, developing transport infrastructure and growing mass media meant thatproducers needed to, and could develop more sophisticated ways of managing the distribution of goods.Holistic Marketing Concept : Holistic marketing concept is based on development, design, and implementation of marketing programs,processes, and activities that recognize their breadth and interdependencies.Holistic marketing recognizes that "everything matters" with marketingand that a broad, integrated perspective is necessary to attain the best solutionFour main components of holistic marketing are: relationship marketing - integrated marketing - internal marketing -and socially responsible marketing.HUL Sales & Distribution in india : A marketing channel performs the work of moving goods from producers to consumers. It overcomes thetime, place and possession gaps that separate goods and services from those who need or want them. Members ofthe marketing channel perform a number of key functions like forward flow of activity from the company to thecustomers(goods) and backward flow from customers to company(order,payment). FMCG major HUL caters to seven million distinct outlets across India and 59% of these stores are inrural India. HUL directly services over 1 million stores and has a network of over 7000 stockists and distributors. - Modern trade - Organized retail - Self-service stores - General trade - Wholesale - Family grocer - Marginal retail - Rural trade - Multi-purpose-retailHyper competition:
Occurs when all companies focus on being the low cost producer. Each company tries to improve theirprocesses by adopting the best practices of their competitors. In effect each company works harder and fasterto be more efficient and their profit margins keep dropping. The alternative is for some companies to adoptother strategies. Associated with Michael Porter.