2. Meaning & Introduction to Marketing
A market is any such person, group or organization which has existing or
potential exchange relationship.
It starts with customers and ends with customers.
Companies today, needs to understand customer needs, study completion,
develop and offer superior value at reasonable price, and make the
product available to customer at convenient place. Only then their products
will be in demand and sell consistently.
Marketing deals with customers.
It is delivery of customer satisfaction at a profit.
The twofold goal of marketing is to attract new customers by promising
superior value and to keep current customers by delivering satisfaction.
3. Marketing is the act of facilitating the exchange of a given commodity for goods, services, and/or money to
deliver maximum value to the consumer.
Marketing is the link between a society’s material requirements and its economic patterns of response.
Marketing satisfies these needs and wants through both the exchange processes and building long-term
relationships.
Marketing can be viewed as an organizational function and a set of processes for creating, delivering, and
communicating value to customers, and managing customer relationships in ways that benefit the
organization and its shareholders.
Marketing is the science of choosing target markets through market analysis and market segmentation, as
well as understanding consumer buying behavior and providing superior customer value.
4. “Market is an organizational function
and a set of process for creating,
communicating value to customers and
for managing customer relationships in
ways that benefit the organization and
its stakeholders."
-THE AMERICAN MARKETING ASSOCIATION
5. Evolution of Marketing
Over the past 12 decades, marketing has gone from the simple act of
informing potential consumers about the existence of a certain product to a
complex web of interactions that take place in person, through print, over the
airwaves and on social media.
Marketing evolution refers to the distinct phases that businesses have gone
through as they continued to seek new and innovative ways to achieve,
maintain and increase revenue through customer sales and partnerships.
Since the 1900s, a variety of different strategies have been employed as
various industries created and refined their marketing approaches.
The authors trace this term back to the 1560s, when it was used to describe
“buying and selling, [the] act of transacting business in a market.”
The first cited use of the word “marketing” in its modern business sense —
the “process of moving goods from producer to consumer with [an] emphasis
on advertising and sales” — comes from 1897.
6. Marketing Mix
The marketing mix refers to the set of actions, or tactics, that a
company uses to promote its brand or product in the market.
The 4Ps make up a typical marketing mix - Price, Product,
Promotion and Place.
However, nowadays, the marketing mix increasingly includes
several other Ps like Packaging, Positioning, People and even
Politics as vital mix elements.
8. 4Ps of Marketing
Product: refers to the item actually being sold. The product must deliver a
minimum level of performance; otherwise even the best work on the other
elements of the marketing mix won't do any good.
Price: refers to the value that is put for a product. It depends on costs of
production, segment targeted, ability of the market to pay, supply - demand
and a host of other direct and indirect factors. There can be several types
of pricing strategies, each tied in with an overall business plan. Pricing can
also be used a demarcation, to differentiate and enhance the image of a
product.
9. Place: refers to the point of sale. In every industry, catching the eye of the
consumer and making it easy for her to buy it is the main aim of a good
distribution or 'place' strategy. Retailers pay a premium for the right
location. In fact, the mantra of a successful retail business is 'location,
location, location’.
Promotion: this refers to all the activities undertaken to make the product
or service known to the user and trade. This can include advertising, word
of mouth, press reports, incentives, commissions and awards to the trade.
It can also include consumer schemes, direct marketing, contests and
prizes.
10. What Is Direct Marketing?
Direct marketing consists of any marketing that relies on direct communication
or distribution to individual consumers, rather than through a third party such
as mass media.
The call to action is a common factor in much of direct marketing.
The effectiveness of direct marketing is easier to measure than media
advertising.
Direct marketing campaigns operate independently to directly communicate
with target audiences.
In direct marketing, companies deliver their messaging and sales pitches by
social media, email, or phone/SMS campaigns.
Although the number of communications sent can be massive, direct
marketing often attempts to personalize the message by inserting the
recipient's name or city in a prominent place to increase engagement.
11. What is Traditional Marketing?
Traditional marketing refers to any type of marketing that isn’t online.
This means print, broadcast, direct mail, phone, and outdoor advertising like
billboards.
From newspapers to radio, this method of marketing helps reach targeted
audiences.
Traditional marketing is not only one of the oldest forms of marketing, but also
one of the most researched.
Marketers lean towards this method because it’s tried and true.
Traditional marketing plays an important part in reaching local audiences.
14. High segmentation and targeting. One of the great advantages of this type of marketing is that you can
reach your specific audience segments with personalized messages. If you want to succeed, you should
invest time to research and identify the consumers most likely to convert and thus direct your efforts to
actions that really work.
Optimize your marketing budget. Addressing online direct marketing to a specific audience allows you to
set realistic goals and improve your sales on a tight budget. If you properly optimize your direct campaign,
you will achieve results with only a small percentage of the cost of traditional advertising.
Increase your sales with current and former clients. Digital direct marketing lets you communicate with
your current customers to keep the relationship alive while continuing to bring value. It also allows you to get
back in touch with old customers and generate new sales opportunities.
Upgrade your loyalty strategies. Direct contact with your customers allows you to customize your
promotions, emails, and offers to create an instant bond. To maximize results, you can combine your direct
marketing methods with your loyalty program.
Create new business opportunities. Direct marketing allows you to adapt to market demands at all times
and respond more effectively.
Tests and analyzes the results. Direct response campaigns give you the opportunity to directly measure
your results. Take the opportunity to squeeze the most of your tests and make decisions in real time.
16. Advantages of Direct Marketing
• Targeting: You can send specific messages to particular groups of customers
and potential customers based on demographics and buying behaviour. The
campaigns, the more successful they are likely to be.
• Personalization: Reach your audience with a personal touch. Direct mail or
email can be addressed to a specific person, and even include details like past
engage a customer in conversation to start building a relationship with your
• Affordable: Tactics like email marketing or leafleting can be very cost effective.
Most direct marketing will be more cost effective for SMEs than mass media
• Measurable: If your marketing messages ask the recipient to take a particular
action or use a specific voucher code, you can easily track the success of
plan future campaigns.
• Informative: You can deliver detailed information on your products, services
and prices unlike other forms of advertising.
17. Disadvantages of Direct Marketing
• Intrusive: Many people find direct marketing annoying and intrusive. This is especially true of
telemarketing and door-to-door sales. Some people dislike marketing mail and consider it to be
marketing tactics annoying it can create a negative brand association and make them less likely to
targeted campaigns.
• Environment: Using leafleting or paper-heavy direct mail campaigns can be bad for the
environment. To avoid this, and any negative impact on your brand image, use recycled materials
• Low response rates: direct marketing response rates tend to be around 1-3%.When you reach a
consumer who isn't interested in your products of services, it wastes money and they are likely to
lists as opposed to sending out mass messages to minimise this.
• Competition: It can be hard to make your messages stand out when the recipient receives high
number of marketing emails or direct mail.
• Cost: Tactics like telemarketing and direct mail may have high financial and resource costs.
• Legal issues: There are laws relating to privacy and data protection in direct marketing. You must
ensure that your mailing list only contains individuals who have consented to receive marketing
18. Types/Approaches of DM
Direct mail
Direct mail is posted mail that advertises your business and its products and
services. There are several different types of direct mail (e.g. catalogues,
postcards, envelope mailers). Direct mail campaigns are usually sent to all postal
customers in an area or to all customers on a marketing list.
Telemarketing
Telemarketing involves contacting potential customers over the phone to sell
products or services. It is capable of generating new customer prospects in large
volumes and is also a useful tool for following up on direct marketing campaigns.
However, a successful telemarketing involves planning and using accurate and
well-researched customer data to match customer profiles to product profiles.
Direct selling
Direct selling is an effective way to grow a flexible, low-cost business. Direct selling
involves an independent salesperson selling products or services directly to
customers, often at a customer's home or workplace. Traditional direct selling
methods include door-to-door sales, party plans and network marketing.
19. Email marketing
Email marketing is a simple, cost-effective and measurable way of reaching your customers. It can
include e-newsletters, promotional emails to generate new leads or offers for existing customers,
or ads that can appear in other businesses' emails.
Text (SMS) marketing
Text messaging allows businesses to reach individual customers and send messages to large
groups of people at a low cost. You could use short message service (SMS) messaging to send
customers sales alerts, links to website updates, appointment or delivery reminders, or
personalized messaging.
Social media marketing
Social media can be used effectively as a marketing tool for business as it gives you the
opportunity to interact directly with your customers and regularly share relevant product or service
information. Social media platforms also make it very easy for your customers to share your
content with their entire network, increasing your reach exponentially. Consider developing a profile
for your business that allows you to promote your products and services while also encouraging
customers to provide feedback by leaving comments.
21. 1) Market fragmentation has limited the applicability of mass marketing techniques. Increased
fragmentation has lead to the emergence of segments that are smaller in size. Such consumer segments
have finer, distinct sets of needs which may not be fulfilled by the current offering of the marketer.
Therefore, the capability of direct marketing techniques to target distinct consumer groups is of increasing
importance.
2) The increasing supply of lists and their diversity has provided raw data for direct marketing activities.
There is large amount of transaction data available with retailers and internet marketing companies that
can be used to target individual customers more accurately.
3) Sophisticated software allows generation of personalized letters, messages and offerings.
4) Sophisticated analytical tools are available now that help companies to classify and understand customers
better. Households can be classified into types of neighborhoods by using geodemographic analysis. For
example, neighborhoods of elderly people, or private houses or single people can be identified. These in
turn can be cross-referenced with product usage, media usage and lifestyle segments.
22. Economics of DM
The direct selling industry has shown signs of hope in the face of the
adversity.
It is one of the fastest growing sectors in India even amidst these very
challenging times.
This growth has been primarily driven by wellness, nutrition and other
FMCG products.
There is a huge value that consumers see in categories such as nutritional
supplements, immunity boosters as well as hygiene products, and these
categories registered far higher sales than before the crisis.
This has resulted in significant growth in the last four quarters of the year.
The direct selling industry is proving to be increasingly appealing, as
people are exploring new and alternative sources of income that are stable
and reliable.
23. Laws pertaining to Patent, Trademark
& Copyright
• A patent is a property right issued by a government authority allowing the
holder exclusive rights to the invention for a certain period of time.
• There are three types of patents: utility patents, plant patents, and design
patents.
• A trademark is a word, symbol, design, or phrase that denotes a specific
product and differentiates it from similar products.
• Copyrights protect “original works of authorship,” such as writings, art,
architecture, and music.
24. • The subject is covered by the Patents Act, 1970.
• India recognizes product patent protection for a period of 14 years.
• However, in three areas: food, chemicals and pharmaceuticals, it recognizes only a process patent for a period of 7 years.
• With the signing of the GATT Agreement, the Patents Act, 1970 has been amended by the Patents (Amendment) Act, 1999 to bring
it in line with the Trade TRIPS Agreement.
• The amended law would allow the filing of all product patents with a regulatory authority.
• It also contains provision for granting Exclusive Marketing Rights (EMRs) for five years or till the patent is granted or rejected
whichever is earlier.
patents
25. Trade Mark
• The law relating to registration of trade marks is governed by the
Trade and Merchandise Marks Act, 1958.
• A distinctive mark (as defined) can be registered under the said
Act.
• In case of infringement of registered trademarks, the statutory
remedies of injunction, damages, accounts and delivery up of
infringing labels and marks are available.
• An action for "passing-off" would lie in relation to an unregistered
mark under certain circumstances.
26. Copyright
• Copyright protection in India is available for any literary, dramatic, musical, sound
recording and artistic work. The Copyright Act 1957 provides for registration of such
works.
• Although an author’s copyright in a work is recognised even without registration, it is
advisable to get the same registered since it furnishes prima facie evidence of
copyright in a court of law.
• Infringement of copyright entitles the owner to remedies of injunction, damages and
accounts.
• Copyright in a literary, dramatic, musical or artistic work (other than a photograph)
published within the lifetime of the author subsists for fifty years from the lifetime of
the author.
• An Amendment Bill is on the anvil to extend the term in favour of performers1 (at
present twenty five years) to fifty years (in order to bring it in accord with the TRIPS
Agreement).
• The amendment also aims to bring original works relating to satellite broadcasting,
computer software and digital technology under copyright protection.
• With the issuance of the International Copyright Order, 1999,the provisions of
Copyright Act have been extended to nationals of all World Trade Organization (WTO)
Member countries.
27. Privacy: Key issues
(a) Privacy of Personal Behaviour
People's interest in enjoying 'private space' is abused by the intrusions that are inherent in most direct
marketing techniques. A further problem is the manipulation of personal behaviour that is the primary
purpose of marketing databases and consumer profiles. A related matter that disturbs some consumers
is the presumption by marketers that computer-generated communications based on database content
represents a relationship with a person.
(b) Privacy of Personal Data
People have a strong interest in controlling the use of data that relates to themselves. Conventional
direct marketing practice abuses many aspects of privacy protection principles. On the list of most
serious public concerns, financial data appears very high (e.g. PC 1995, Clarke 1997a).
The abuse of personal data is being extended by the endeavour on the part of marketers to convert
hitherto anonymous transactions into identified ones, through such means as so-called 'loyalty'
schemes. This matter is addressed in Clarke ( 1995d, 1996e, and 1996i).
Public concern is evidenced through the periodic media coverage of such matters as abuse of data
collections such as the telephone white pages, council records of dog registrations and building
approvals, and State government land titles and marriage registration data. The question of so-called
'public registers' is examined in Clarke ( 1997g).
28. (c) Consumer Profiling
Consumer profiling involves the accumulation, acquisition and cross-referencing of
data about individuals, possibly combined with geo-demographic data; followed by its
use for various micro-marketing purposes. Its privacy-invasiveness is examined in
Clarke ( 1993e and 1997f).
(d) Consumer Interests More Generally
Privacy is one of a number of contentious issues that arise in the relationship between
marketers and consumers, in such areas as conditions of contract, and the recourse and
sanctions available in the event of malperformance by the marketer.
Although considerable progress has been made in relation to consumer rights, the
regulatory arrangements are not technology-neutral, and much of it evaporates in the
electronic context. For an examination of consumer issues in marketing through
electronic channels, see Clarke ( 1996h, 1997h and 1997i).
29. 1.2 What is Integrated Marketing
Communication?
Integrated marketing communication refers to integrating all the
methods of brand promotion to promote a particular product or
service among target customers.
In integrated marketing communication, all aspects of marketing
communication work together for increased sales and maximum cost
effectiveness.
30. Various Components of Integrated
Marketing Communication:
The Foundation - As the name suggests, foundation stage involves detailed
analysis of both the product as well as target market. It is essential for marketers to
understand the brand, its offerings and end-users. You need to know the needs,
attitudes and expectations of the target customers. Keep a close watch on
competitor’s activities.
The Corporate Culture - The features of products and services ought to be in line
with the work culture of the organization. Every organization has a vision and it’s
important for the marketers to keep in mind the same before designing products
and services.
Brand Focus - Brand Focus represents the corporate identity of the brand.
31. Consumer Experience - Marketers need to focus on consumer experience which
refers to what the customers feel about the product. A consumer is likely to pick
up a product which has good packaging and looks attractive. Products need to
meet and exceed customer expectations.
Communication Tools - Communication tools include various modes of promoting
a particular brand such as advertising, direct selling, promoting through social
media such as Facebook, twitter, Orkut and so on.
Promotional Tools - Brands are promoted through various promotional tools such
as trade promotions, personal selling and so on. Organizations need to strengthen
their relationship with customers and external clients.
Integration Tools - Organizations need to keep a regular track on customer
feedbacks and reviews. You need to have specific software like customer
relationship management (CRM) which helps in measuring the effectiveness of
various integrated marketing communications tools.
32. Integrated marketing communication plays an integral role in
communicating brand message to a larger audience.
Integrated marketing communication goes a long way in creating
brand awareness among customers at a minimal cost.
Integrated marketing communication scores over traditional ways of
marketing as it focuses on not only winning new customers but also
maintaining long term healthy relationship with them.
Integrated marketing communication saves time which is often lost
in figuring out the best marketing tool.
Importance of IMC
33. Role of Imc in marketing process
Any organization that wants to exchange its products or services in the marketplace
successfully should have a strategic marketing plan to guide the allocation of its
resources.
A strategic marketing plan usually evolves from an organization’s overall corporate
strategy and serves as a guide for specific marketing programs and policies.
IMC is defined as customer centric, data driven method of communicating with the
customers.
IMC is the coordination and integration of all marketing communication tools, avenues,
functions and sources within a company into a seamless program that maximizes the
impact on consumers and other end users at a minimal cost. Integrated Marketing
Communications is a simple concept.
It ensures that all forms of communications and messages are carefully linked together.
35. Opportunity Analysis
• A careful analysis of the marketplace should lead to alternative
market opportunities for existing product lines in current or new
markets, new products for current markets, or new products for new
markets
• Market opportunities are areas where there are favourable demand
trends, where the company believes customer needs and
opportunities are not being satisfied, and where it can compete
effectively
Athletic-shoe companies such as Nike, Reebok, and others see the
shoe market as an opportunity to broaden their customer base both
domestically and internationally.
36. Competitive Analysis
In developing the firm’s marketing strategies and plans for its
products and services, the manager must carefully analyse the
competition to be faced in the marketplace.
• This may range from direct brand competition (which can also
include its own brands) to more indirect forms of competition,
such as product substitutes
• An important aspect of marketing strategy development is the
search for a competitive advantage, something special a firm
does or has that gives it an edge over competitors.
38. 1-identifying Markets
• Target market identification isolates consumers with similar
lifestyles, needs, and the like, and increases our knowledge of
their specific requirements
• The more marketers can establish this common ground with
consumers, the more effective they will be in addressing these
requirements in their communications programs and
informing and/or persuading potential consumers that the
product or service offering will meet their needs.
39. 2- Market Segmentation
Dividing up a market into distinct groups that have common needs
and will respond similarly to a marketing process. The Process
involves the following steps:
• Finding ways to group consumers according to their needs
• Finding ways to group the marketing actions—usually the products
offered available to the organization
• Developing a market-product grid to relate the market segments to
the firm’s products or actions
• Selecting the target segments toward which the firm directs its
marketing actions
• Taking marketing actions to reach target segments
41. 3- Selecting a target market
1. Determining how many segments to enter:
• Undifferentiated marketing involves ignoring segment differences and
offering just one product or service to the entire market
• Differentiated marketing involves marketing in a number of segments,
developing separate marketing strategies for each
• Concentrated marketing is used when the firm selects one segment and
attempts to capture a large share of this market.
2. Determining which segments offer potential:
The second step in selecting a market involves determining the most
attractive segment. The firm must examine the sales potential of the
segment, the opportunities for growth, the competition, and its own ability
to compete. Then it must decide whether it can market to this group.
42. 4- Market Positioning
Positioning has been defined as “the art and science of fitting the product or
service to one or more segments of the broad market in such a way as to set it
meaningfully apart from competition.” Positioning strategies generally focus on
either the consumer or the competition.
Developing a Positioning Strategy: To create a position for a product or service,
managers must ask themselves six basic questions:
• What position, if any, do we already have in the prospect’s mind?
• What position do we want to own?
• What companies must be outgunned if we are to establish that position?
• Do we have enough marketing money to occupy and hold the position?
• Do we have the guts to stick with one consistent positioning strategy?
• Does our creative approach match our positioning strategy?
43. Approaches:
Positioning by Product Attributes and Benefits
ii. Positioning by Price/Quality
iii. Positioning by Use or Application
iv. Positioning by Product Class
v. Positioning by Product User
vi. Positioning by Competitor
vii. Positioning by Cultural Symbols
viii. Repositioning
44. Determining the positioning strategy
Identifying competitors
ii. Assessing consumers’ perceptions of competitors
iii. Determining competitors’ positions
iv. Analyzing the consumers’ preferences
v. Making the positioning decision
vi. Monitoring the position
45. Developing the Marketing Planning
Program
Product Decisions
Product planning involves decisions not only about the item itself, such as design
and quality, but also about aspects such as service and warranties as well as
brand name and package design. Consumers look beyond the reality of the
product and its ingredients. The product’s quality, branding, packaging, and even
the company standing behind it all contribute to consumers’ perceptions.
Branding
One important role of advertising in respect to branding strategies is creating and
maintaining brand equity, which can be thought of as an intangible asset of
added value or goodwill that results from the favourable image,
impressions of differentiation and/or the strength of consumer attachment to a
company name, brand name, or trademark.
46. Packaging
Packaging is another aspect of product strategy that has become increasingly
important. The package is often the consumer’s first exposure to the product, so it
must make a favourable first impression.
Pricing
The price variable refers to what the consumer must give up to purchase a product
or service. While price is discussed in terms of the dollar amount exchanged for an
item, the cost of a product to the consumer includes time, mental activity, and
and behavioural effort. A firm must consider a number of factors in determining
the price it charges for its product or service, including costs, demand factors,
competition, and perceived value.
Distribution Channel
Marketing channels, the place element of the marketing mix, are “sets of
interdependent organizations involved in the process of making a product or
service available for use or consumption.
47. Role of Advertising and Promotion
Marketers use the various promotional-mix elements—advertising, sales
promotion, direct marketing, publicity/public relations, and personal selling—to
inform consumers about their products, their prices, and places where the
products are available.
Each promotional mix variable helps marketers achieve their promotional
objectives, and all variables must work together to achieve an integrated
marketing communications program.
The development and implementation of an IMC program is based on a strong
foundation that includes market analysis, target marketing and positioning, and
coordination of the various marketing-mix elements.
48. Relationship of IMC with direct
marketing
Direct marketing is the first area of marketing communication that adopted an
IMC approach.
Direct marketing enables organizations to communicate directly with end-
users. Various tools for direct marketing are emails, text messages, catalogues,
brochures, promotional letters & so on.
Through direct marketing is a form of advertising through mail, print or TV-
direct response ad.
- Combining direct marketing with Internet/ Interactive
- Combining Direct Marketing with Public Relations/ Publicity
- Combining Direct Marketing with Personal Selling
- Combining Direct Marketing with Sales Promotion
49. Tools of IMC
1. Advertising
Advertising has four characteristics: it is persuasive in nature; it is non-personal; it is paid for by an identified
sponsor; and it is disseminated through mass channels of communication.
Advertising messages may promote the adoption of goods, services, persons, or ideas. Because the sales
message is disseminated through the mass media–as opposed to personal selling–it is viewed as a much
cheaper way of reaching consumers.
However, its non-personal nature means it lacks the ability to tailor the sales message to the message
recipient and, more importantly, actually get the sale.
Therefore, advertising effects are best measured in terms of increasing awareness and changing attitudes
and opinions, not creating sales.
Advertising’s contribution to sales is difficult to isolate because many factors influence sales. The
contribution advertising makes to sales are best viewed over the long run.
The exception to this thinking is within the internet arena.
While banner ads, pop-ups and interstitials should still be viewed as brand promoting and not necessarily
sales drivers, technology provides the ability to track how many of a website’s visitors click the banner,
investigate a product, request more information, and ultimately make a purchase.
50. 2. Sales Promotions (SP)
Sales promotions are direct inducements that offer extra incentives to enhance or
accelerate the product’s movement from producer to consumer.
Sales promotions may be directed at the consumer or the trade.
Consumer promotions such as coupons, sampling, premiums, sweepstakes, price packs
(packs that offer greater quantity or lower cost than normal), low-cost financing deals,
and rebates are purchase incentives in that they induce product trial and encourage
repurchase.
Consumer promotions may also include incentives to visit a retail establishment or
request additional information.
Trade promotions include slotting allowances (“buying” shelf space in retail stores),
allowances for featuring the brand in retail advertising, display and merchandising
allowances, buying allowances (volume discounts and other volume-oriented
incentives), bill back allowances (pay-for-performance incentives), incentives to
salespeople, and other tactics to encourage retailers to carry the item and to push the
brand.
51. 3. Personal Selling (PS)
Personal selling includes all person-to-person contact with customers with the
purpose of introducing the product to the customer, convincing him or her of the
product’s value, and closing the sale.
The role of personal selling varies from organization to organization, depending
on the nature and size of the company, the industry, and the products or services
it is marketing.
Personal selling is the most effective way to make a sale because of
the interpersonal communication between the salesperson and the prospect.
Messages can be tailored to particular situations, immediate feedback can be
processed, and message strategies can be changed to accommodate the
feedback.
52. 4. Public relations (PR)
The purpose of public relations is to create goodwill between an organization (or
the things it promotes) and the “public” or target segments it is trying to reach.
This happens through unpaid or earned promotional opportunities: articles, press
and media coverage, winning awards, giving presentations at conferences and
events, and otherwise getting favorable attention through vehicles not paid for by
the sponsor.
Although organizations earn rather than pay for the PR attention they receive, they
may spend significant resources on the activities, events, and people who
generate this attention.
53. 5.Direct Mail
Direct mail plays an important role in your integrated marketing campaign
because it acts to supplement your other efforts cheaply and effectively.
It's rarely used on its own as the sole way to market a product or service, since it
does serve a niche role which limits the total amount that you can spend on it.
Direct mail has a number of advantages over other types of advertising, including
the fact that messages can be prepared quickly and distributed easily to thousands
of people, but it’s not the panacea it used to be.
Some of the drawbacks readily attached to direct mail, like declining customer
response rates in recent decades and expensive costs to manage a direct mail
database, have been ameliorated in recent years.
Customer response rates have actually leveled out after being artificially high for a
a number of decades due to the importance of mail in the consumer’s life, and
new database technology is making database maintenance cheaper and more
effective.
54. 6. Direct Response Television
As its name suggests, DRTV is a long-form advertising format
that features a call to action or other actionable content
intended to get consumers to respond in a specific way at a
specific time.
The call to action typically comes at the end of the direct
response segment, though it may also appear at earlier points
as well; the goal is to use the majority of the segment
convincing the viewer why that action is the right one to take.
55. 7. Direct Response Advertising
Direct response advertising is a type of marketing designed to get an
instant response by encouraging people to take a specific action.
The goal is to generate leads quickly. Comparatively, traditional marketing
aims to raise brand awareness and promote your brand image in the long
term. Direct response advertising requires immediate action.
Furthermore, direct response advertising can take place through many
different channels, such as TV, print, radio, email, digital, and social.
56. 8- Direct response Print Advertising
Studies show that print advertising improves the response and recall of other types of
advertising because it appeals to people on a broader range of their senses.
People are better able to recall what they read in print as well as brand images,
both will appear more trustworthy and familiar later on.
Reducing advertising fatigue has a lot to do with catching people when they are more
open and engaged with the media versus mindlessly participating.
Studies show that online reading primarily consists of a lot of browsing and scanning
which leads to worse recognition and recall.
People tend to read and retain information differently depending on the type of
medium they are reading it from.
When people choose to look at a magazine, newspaper, or a flyer they get in the mail
it’s typically during a chosen time of the day when they are ready and more
importantly “expecting” to see advertising.
Reading in a print publication audiences are actively looking for things that are
appealing to them both in content and in commerce.
58. What is Customer Relationship
Management (CRM)?
A combination of business strategies, software and processes that help
build long-lasting relationships between companies and their customers.
Technology for managing all your company’s relationships and interactions
with customers and potential customers.
Improve business relationships to grow your business.
59. CRM
CRM
System
CRM
Tools
• A CRM system helps companies stay connected to
customers, streamline processes, and improve
profitability- - a tool that helps with contact
management, sales management, agent productivity,
and more.
• CRM tools can now be used to manage customer
relationships across the entire customer lifecycle,
spanning marketing, sales, digital commerce,
and customer service interactions.
• A CRM system gives everyone — from sales, customer
service, business development, recruiting, marketing,
or any other line of business — a better way to
manage the external interactions and relationships that
drive success.
61. CRM Dashboard serves…
Customer’s previous history, the status of their orders, any outstanding
customer service issues etc.
include information from their public social media activity — their likes
and dislikes, what they are saying and sharing about you or your
competitors.
Used by marketers to manage and optimize campaigns and lead journeys
with a data-driven approach.
Able to understand the pipeline of sales or prospects coming in, making
forecasting simpler and more accurate.
62. Why CRM is Important?
Help better understand the needs of every individual customer
Reduce customer churn - eg: lower selling costs.
Increase leads.
Increase revenue per customer.
Help deliver a consistent experience every time.
63. Developing & Planning a CRM Strategy
A Customer Relationship Management strategy is a plan to grow sales and improve customer service through a
combination of processes, actions, and technology. It typically involves the sales, marketing, and customer
service functions of a business.
Step 1: Define your CRM strategy vision and goals
Step 2: Define your target customer with buyer personas
Step 3: Define your customer journey
Step 4: Establish the processes for a 360° customer experience
Step 5: Study the market and know your positioning
Step 6: Knowing your product or service
Step 7: Upload in CRM software
Step 8: Setting Key Performance Indicators (KPIs) for each team
64. Step 1: Define your CRM strategy vision
and goals
The first thing to do before creating a CRM strategy is to revisit your overall
business strategy and high-level business goals.
Create a vision of what you want to achieve from the CRM strategy. That
way it has a clear purpose from the very beginning.
Think about how you want to contribute to the success of your business.
Increased customer satisfaction, higher productivity and efficiency, and
decreasing customer churn rates are all examples of common CRM
strategy goals.
Remember, your CRM strategy is not an end in itself. It exists to drive
business goals. So you need to integrate it into the overall strategy of the
business.
65. Step 2: Define your target customer with buyer
personas
Create a buyer persona that represents
your ideal customer. Make it as detailed
as possible.
Include information such as demographic
and behavioral characteristics, as well as
interests, challenges, and aspirations.
Having a clearly defined buyer profile is
essential to becoming a customer-centric
business.
It’s key to ensuring your teams are focused
on the true needs and expectations of your
customers.
66. Step 3: Define your customer
journey
To master customer relationship management,
you need to know each and every step of the
customer journey.
Then you need to ensure a top notch customer
experience at each of those touchpoints.
Map every single customer interaction from the
moment they first discover you.
It might be through digital ad campaigns, email
marketing, direct contact with team members,
or other processes.
67. Step 4: Establish the processes for a 360°
customer experience
Do an audit of roles and responsibilities to check all the necessary bases are being
covered.
Here are examples areas to optimize processes:
• Presales: How are you doing when it comes to analyzing customer needs,
gathering information, and putting together business cases?
• Sales processes: What sales tasks can be automated to increase efficiency?
• Customer relationship management: Are your offers tailored to your customers’
needs? Are your communications personalized and relevant?
• After-sales: Have you got the necessary support systems in place to resolve
customer problems quickly? What feedback do you receive on the quality of your
customer service?
68. Step 5: Study the market and know your
positioning
It’s always a good idea to look to the competitive landscape for inspiration when
developing CRM strategies.
Ask yourself:
• Where does your company fit into the market?
• What is your unique selling proposition (i.e. what makes you different from others in
your space?)
• How do your competitors differentiate themselves?
• What opportunities exist?
• Can you learn anything about how your competitors handle customer
relationships?
• What are the trends in your industry right now?
69. Step 6: Knowing your product or service
Take the time to revise and develop your product/service narrative and
elaborate your value proposition.
What are the messages you want to transmit? What benefits do you want
to highlight? Why should a customer choose you over your competitors?
Communicate this narrative internally and implement employee training
where necessary. Everyone needs to be on the same page, relaying the
same message.
This is also a good opportunity to define your brand tone of voice and put
in place best practice guidelines for communicating with customers.
70. Step 7: Invest in CRM software
One of the best ways to drive forward your
CRM strategy is to invest in a CRM software
for your business.
It’s great for collaboration between teams,
storing customer data and keeping track of all
interactions between you.
The main factors to be considered when
choosing a CRM software are price,
capabilities, and ease of use. It’s also
important that your CRM can integrate with
your existing tools.
71. Step 8: Setting Key Performance
Indicators (KPIs) for each team
All strategic actions need to be backed up by figures and data
– and your CRM strategy is no exception. You need to be able
to measure its progress.
When setting objectives for your teams remember to make
them S.M.A.R.T (i.e. Specific, Measurable, Achievable,
Realistic, and Time-bound).
Examples of performance metrics you may wish to include are:
Customer satisfaction
Customer retention
Customer churn (when a customer leaves the company)
Profits (overall total, totals per customer/account)
The success of your CRM strategy depends on the levels of
engagement and collaboration of your teams.
Get your employees on board from the beginning. Keep them
informed, educated, and up to date on all aspects of your CRM
strategy.
72. Customizing Products to different
needs
Product customization is the key to serving your
customer base successfully.
Not all of your customers want the same thing or use
your product the same way.
Product customization is essential for delivering a
personalized customer experience to each segment of
users, and can drive customer loyalty and increase
customer satisfaction.
73. Not All Your Customers are the Same
Instead of being just generally suitable for your clientele, you can customize your product to be specifically perfect
to every different segment of users.
Millennials are particularly attracted to the idea of customization. Brands have been developed around the idea of
hyper-personalization, which makes it possible for everyone to get exactly what they want at the press of a button.
Customers love things made just for them
Customization is a great business strategy because it makes customers happier; and happy customers are repeat
customers!
Customers who can customize their experience find value either through exclusivity, in the form of a personalized,
unique product, or specificity in the form of a feature that works in a way that they would like.
Customization as a Feature
Treat customization like any other feature in your product. Decide whether it’s worth it to add more complexity to the
product.
Are users asking for what you’re thinking of building?
How much time will it take to build and support this feature?
What else will be impacted by this customization?
Will the additional customization support or devalue your existing brand?
74. Finding Places to Customize
Instead of trying to make everything customizable, it’s important to be methodical about offering
options to your users.
Otherwise, you’ll end up with a product that’s overly confusing and complicated.
Instead of aiming to customize everything, look at who your users are, and what they want to be
able to do.
This will help identify the most important opportunities for customization.
User Personas
Creating user personas can help illustrate the different segments of your user base.
In particular, understanding needs, goals and user journeys will help showcase where your
customers could be getting more value from your product, if it was slightly customized to their
needs.
Feature requests
Customization doesn’t add an entirely new workflow, it usually only modifies an existing feature.
75. Customization Boosts Customer Satisfaction
Allowing your customers to customize their experience is a clever way to stand apart
from the competition.
Look for ways to offer a unique and personalized experience to customers at each stage
of their journey.
When you understand the different types of customers that purchase from you, it
becomes clear how each of their needs differ.
By catering to these needs specifically, you can boost customer satisfaction and
customer loyalty.
76. Studying the Customers mix and Managing the Key
customers
Customer mix is the sales driven by a particular type of customer segment
expressed as a percentage of a business's total sales.
Customer mix tells what all customer segments are being serviced by the business.
It shows which customer segment is the most important in driving the sales and
which segment is lagging behind.
The Customer Mix looks past the next transaction and thinks about what’s required
not just to sell an item, but to keep the customer’s loyalty for future purchases.
77.
78. In the Customer Mix we directly consider Who the different target customers
are.
Combined with Who, Why informs us on our target customer segments and
their motivations.
It goes beyond the product too, as What the customers want can include
value, convenience or personalization of the offer.
Where considers locations for fulfilment, and also locations for every other
aspect of the customer journey including research and purchase.
When gives us a real sense of how important convenience is to the customer
experience.
In the What’s Next element of the Customer Mix is the idea that in modern
retailing, customer loyalty can rarely be earned with a single transaction.
79. Customer lifetime value
Customer lifetime value (CLV, or CLTV) is the metric that indicates the total revenue
a business can reasonably expect from a single customer account throughout the
business relationship.
Customer lifetime value is a crucial measure of a retailer’s success with its
customers, and should be an indicator of both future sales and profitability.
Improving the value and longevity of customer relationships, involves considering
some or all of the other five Ws to allow all consumer-facing businesses to
meaningfully engage with their customers.
80. Relationship marketing
Relationship marketing is a facet of customer relationship management (CRM) that
focuses on customer loyalty and long-term customer engagement rather than
shorter-term goals like customer acquisition and individual sales.
The goal of relationship marketing (or customer relationship marketing) is to create
strong, even emotional, customer connections to a brand that can lead to ongoing
business, free word-of-mouth promotion and information from customers that can
generate leads.
81. Transactional marketing is a business strategy that focuses on single,
"point of sale" transactions. The emphasis is on maximizing the
and volume of individual sales rather than developing a relationship with
the buyer.
Transactional marketing is based on a single sale formula and geared
towards short term benefits. Relationship marketing promotes customer
loyalty and improving ways of doing business for long-term customer
retention.
82. Customer Loyalty
While organizations combine elements of both relationship and
transactional marketing, customer relationship marketing is starting to
play a more important role for many companies.
1- Customer Loyalty
Loyal customers can help you do more than save money and time. They’re
also valuable assets who help you profit more in the long run. When your
relationship marketing efforts improve your retention rates by just 25%,
you can boost your company’s profits by 25% to 95%.
Relationship marketing is your opportunity to not only win over your
target audience but also keep them as long-term and loyal buyers.
83. 5 steps to build your relationship marketing
strategy
1- Customer Loyalty Programs- vip passes, coupons, discounts etc.
2- Guarantee Reliable Customer Service- warranty/ guarantee, free repair
service etc.
Collect consumer data- feedback/ client brief
Personalisation every interaction- personal calling/ sms/ mailing
Follow up- rating/ offering new services/ notifying etc.
84. 3 Tasks of Direct & Interactive Marketing
Direct and interactive marketing techniques typically include a response
mechanism that allows consumers to respond directly to a communication and
potentially make a purchase.
The ability to measure direct and interactive marketing effects allows marketers to
design communication programs that target consumers based on recency – the
amount of time since last purchase, frequency – the number of previous purchases,
and monetary value – the total expenditures a customer makes over time.
The strategies, methods, and metrics of direct and interactive marketing are
becoming more central to marketing strategy as digital technologies allow
interactive marketing communications to take place through television and mobile
devices.
85. 1- Customer Acquisition
Acquisition is the right strategy when the market is in a growth stage. A growing
market presents opportunities to cash in on the wave and build a strong brand
value and also a greater market share.
Acquisition presents an opportunity to cherry pick high value customers through
careful analysis.
Customer acquisition refers to bringing in new customers - or
convincing people to buy your products.
86. 2- Customer Retention
Once an organization has built up its customer base, the focus moves on to how to
retain them. Churn or attrition is inevitable. Not all the customers would stick with the
organization forever.
They may leave at any time due to change in taste, better products or service, better
terms or due to change in market.
Customer retention refers to a company's ability to turn customers into repeat
buyers and prevent them from switching to a competitor. It indicates whether your
product and the quality of your service please your existing customers.
87. 3- Customer Development
Customer development is the formal process of identifying potential customers and
figuring out how to meet their needs.
Development helps enhance profitability from existing customers without having to
spend when the margins are tight and acquisition costly.
Developing customer, is aimed at garnering greater share of the Customer spend or the
Wallet Share.
The strategy involves inducing customers to purchase more, purchase high value
products or increase the frequency of purchases.
88. Organizations can develop customers
through:
• Cross-selling: selling other products/ services the firm offers
• Up-selling: Converting customer to buy high priced or high
level product/ service
• Enhancing: Luring customers to purchase more often
(frequency) or more in volume.
89. Market Segmentation
Market segmentation is an increasingly important part of a strong
marketing strategy and can make all the difference for companies in
competitive market landscapes, such as e-commerce.
The 4 basic types of market segmentation are:
1. Demographic Segmentation
2. Psychographic Segmentation
3. Geographic Segmentation
4. Behavioral Segmentation
