MARKETING
Unit - 1
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Introduction
Definition of marketing
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Marketing is defined by the American
Marketing Association [AMA] as "the activity,
set of insti...
Definition of marketing
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Marketing (or advertising) is the process by
which companies advertise products or
services to ...
Definition of marketing
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Marketing is used to create the customer, to keep
the customer and to satisfy the customer. Wit...
Evolution of marketing
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Barter
Production orientation
Sales orientation
Marketing orientation
Consumer orienta...
Meaning of market
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Market includes both place and region in
which buyers and sellers are in free
competition with one an...
Classification of market
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On the basis of area
Goods
Economics
Transaction
Regulation
Time
Volume
Importan...
What is marketed
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Goods
Services
Experiences
Events
Persons
Places
Properties
Organisations
Informatio...
Marketing environment
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The term marketing environment relates to all
of the factors (whether internal, external,
di...
Marketing environment
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Macro environment
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On the macro environment a firm holds only little control. It
consists of a ...
Marketing environment
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Micro environment
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A firm holds a greater amount (though not necessarily total)
control of the ...
Selling vs marketing
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Marketing is much wider than selling and much more dynamic.
The fundamental differance ...
Selling vs marketing
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Marketing is the planning, pricing, promotion, packaging,
advertising selling of any produ...
Selling vs marketing
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Most sales Managers Consider selling to be about
report and relationship building; getting to k...
Selling vs marketing
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Broadly, Marketing creates the atmosphere to
make it easy for sales to happen. Marketing
c...
Global marketing
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The Oxford University Press defines global
marketing as “marketing on a worldwide
scale reconciling or...
Evolution to global marketing
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Domestic marketing
International marketing
Multinational marketing
Global marketing
GLOBAL MARKETING
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When a company becomes a global
marketer, it views the world as one market
and creates products that w...
Global marketing Advantages and
Disadvantages
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ADVANTAGES
Economies of scale in production and distrib...
Disadvantages
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Differences in consumer needs, wants, and usage
patterns for products
Differences in cons...
Elements of the global marketing mix
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Product
Price
Placement
Promotion
Marketing interface with other functional
areas
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Production
Finance
Human relations management
Information system
UNIT - 2
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Marketing strategy
Marketing strategy
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Marketing strategy is a process that can
allow an organization to concentrate its
limited resources ...
Marketing strategy
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Marketing strategy is a method of focusing an
organization's energies and resources on a
course of a...
Types of strategies
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A marketing strategy can serve as the
foundation of a marketing plan. A marketing
plan contains a s...
Types of strategies
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Marketing strategies may differ depending on
the unique situation of the individual
business. Howev...
Types of strategies
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Strategies based on market dominance - In
this scheme, firms are classified based on
their...
Types of strategies
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Market dominance
Porter generic strategies
Innovation strategies
Growth strategies
Industrial marketing
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Industrial marketing is the marketing of goods and
services from one business to another. Industri...
B2B Marketing Strategies
B2B BRANDING
PRODUCT
PRICING
PROMOTION
PLACE
Who is customer in a B2B Sale?
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The first category includes original equipment manufacturers,
such as automakers, who bu...
CONSUMER MARKETING
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B2C Business to Consumer (or "Consumer")
Examples of the B2C selling/buying process are...
A fam...
Consumer marketing
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The main features of the B2C selling process
are...
Marketing is one-to-many in natur...
Services marketing
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Services marketing is marketing based on
relationship and value. It may be used to mark...
Competitor analysis
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Competitor analysis in marketing and
strategic management is an assessment of
the strengths ...
Marketing mix
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4 Ps of marketing
PRODUCT
PRICE
PLACE
PROMOTION
Why 7 ps

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Process
Physical evidence
people
Unit – 3
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Marketing mix
decisions
product

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Product Planning is the ongoing process of
identifying and articulating that define a
product’s feature set.
Chapter Goals
To gain an understanding of:
 The meaning of total “product” and “new” product
 Classification of business...
What is a Product?
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it is more than physical products; includes services, places,
persons, and ideas
it is easy...
Classifying Business
Products
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raw materials: unprocessed, become part of
materials
other manufactured produc...
Product life cycle
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Product life cycle management is the
succession of strategies used by
management and as a product go...
Product life cycle
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Market introduction stage
Growth stage
Mature stage
Saturation and decline stage
Market introduction stage
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costs are high
slow sales volumes to start
little or no competition - competitive...
Growth stage
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costs reduced due to economies of scale
sales volume increases significantly
profitability begi...
Mature stage
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costs are lowered as a result of production
volumes increasing and experience curve effects
...
Decline stage
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costs become counter-optimal
sales volume decline or stabilize
prices, profitability diminish
profi...
The New Product
Development Process

1.
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4.
1.
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3.
4.
Idea
Screening Business Prototype
Idea
Screening Business Pro...
Idea Generation
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is often called the "fuzzy front end" of the NPD process
Ideas for new products can be obtained fr...
Idea Screening
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The object is to eliminate unsound concepts prior to
devoting resources to them.
The screeners must a...
Concept development and testing
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Develop the marketing and engineering details
 Who is the target market and who is ...
Business Analysis
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Estimate likely selling price based upon
competition and customer feedback
Estimate sales volum...
Beta Testing and Market Testing
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Produce a physical prototype or mock-up
Test the product (and its packaging) ...
Technical Implementation
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New program initiation
Resource estimation
Requirement publication
Engineeri...
Commercialization (often considered
post-NPD)
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Launch the product
Produce and place advertisements and other
prom...
New Product Pricing
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Impact of new product on the entire product
portfolio
Value Analysis (internal & extern...
Market segmentation
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A market segment is a group of people or
organizations sharing one or more
characteristics that cau...
Market segmentation
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A true market segment meets all of the
following criteria: it is distinct from other
segments (diff...
Market segmentation
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The term is also used when consumers with
identical product and/or service needs are
divided up int...
Patterns for market segmentation
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Homogeneous preferences
Diffused preferences
Clustered prefences
Market segmentation procedure
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Survey stage
Analysis stage
Profiling stage
Segmenting consumer and business
markets
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Segmenting consumer markets
Geographic segmentation
Demographic segm...
Basis for segmenting business markets
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First time prospects
Novices
Sophisticates
Programmed buyers
Relatio...
Effective segmentation
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Measurable
Substantial
Accessible
Actionable
Market targeting
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A 'target market or target Audience is the
market segment which a particular product is
marketed to. I...
Market positioning
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Once a market segment has been identified (via
segmentation), and targeted (in which the viabilit...
Market channel
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Market channel are sets of of interdependent
organizations involved in the process of making a
product o...
Roles of marketing channel in
marketing strategy:
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Links producers to buyers.
Performs sales, advertising and p...
Distribution channel
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An alternative term is distribution channel. It is a
'path' or 'pipeline' through which goods and ...
Advertising
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Defn: Any paid form of non personal
presentations and promotion of ideas goods
and services by an identifie...
Advertisement objective
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Informative advertising
Persuasive advertising
Reminder advertising
Types of advertising
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Television
Infomercials
Radio ad
Print ad
Online ad
Billboard ad
celebrities
Sales promotion
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Sales promotion consists of a diverse
collection of intensive tools,mostly short term,
mostly designed ...
Sales promotion techniques
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Samples
Coupons
Cash refund offers
Price packs
Premiums
Prizes
Patronage award...
Pricing
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Price is the amount that we pay for goods,
services or ideas.
Price is the exchange value between buyers
and...
Objectives of pricing
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Survival pricing
Current profit max pricing
Market share pricing
Product quality leadership
Approaches to pricing
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Cost based
Competition based
Demand based
Unit - 4
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Buyer behaviour
Buyer behaviour
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Introduction
An important part of the marketing process is to
understand why a customer or b...
Industrial buyers
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Industrial buyers are those who purchase items on behalf of
their business or organisation...
Consumer Buying Behaviour
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1. Problem/Need Recognition
2. Information search
3. Evaluation of different purc...
Online buyer behaviour
Consumer Behavior Online
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Consumer types
 Individual consumers
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Organizational buyers
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Commands most of t...
Demographics of Internet Surfers
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Environmental variables
 Social variables – influenced by peers
 Cultural va...
Major Roles in Purchasing
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5 major roles
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Initiator
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Influencer
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Makes a buying decision or any part of it

...
Purchasing decision-making model
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5 major phases
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Need identification
 marketer must get customer to reco...
Consumer Satisfaction
CRM
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Customer relationship management is a broadly
recognized, widely-implemented strategy for
managing and nurturing a ...
CRM
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CRM stands for Customer Relationship
Management. It is a process or methodology used
to learn more about customers'...
CRM
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CRM helps businesses use technology and
human resources to gain insight into the
behavior of customers and the valu...
CUSTOMER ACQUISITION
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Customer acquisition management is a
term used to describe the methodologies and
systems to manage...
Customer Retention
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Customer Retention is the activity that a selling
organization undertakes in order to reduce custome...
Customer retention
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Customer retention is more than giving the customer
what they expect, it’s about exceeding their
exp...
Customer defection(attrition)
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When companies are measuring their
customer turnover, they typically make the
distinction...
Unit – 5
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Market research and
trends in marketing
Marketing Information System
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A Marketing Information System can be
defined as 'a system in which marketing
information ...
Marketing Information Systems
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Marketing Research
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What is Marketing Research?
Process
Terminology
Techniques...
Marketing Research
the systematic gathering, recording and
analysing of data about problems relating to
the marketing of g...
The Marketing Research Process
Define research Problem
Assess the value of the research
Construct a research proposal
Spec...
Terminology of Marketing Research
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Primary data - collected firsthand
Secondary data - already exists, desk
re...
Marketing Research Techniques
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Interviews
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face-to-face
telephone
postal questionnaire

Attitude measurement
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...
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Likert scale
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strongly agree
agree
neither agree nor disagree
disagree
strongly disagree

Semantic diff...
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Group discussion and focus group
Postal research questionnaires
Diary panels - sources of continuous data
In...
Product advertising
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Advertising research is a specialized form of research that works
to improve the effectiveness and ...
promotion
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Promotion involves disseminating
information about a product, product line,
brand, or company. It is one of t...
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Promotion is generally sub-divided into two parts:
Above the line promotion: Promotion in the media
(e.g. TV, radi...
promotional mix
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There are four main aspects of a
promotional mix.
Advertising
Personal selling
Sales promoti...
The Customer Driven Organization
Learning Objectives
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When you have completed this module you will be
able to define the key concepts associated with the...
Learning Objectives
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Understand how to critically look at the customer
service levels and to establish if the organizati...
What is a Customer Driven
Organization?
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A customer driven organization is one that:
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Listens to its customers

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Int...
Benefits of Being Customer Driven
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The organization gains the following benefits:
Loyalty of Customers
Focus on value ad...
Benefits of Being Customer Driven
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Loyalty of customers
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Customers will stay where they feel they are being
valued

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...
Benefits of Being Customer Driven
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Focus on value add
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The organization will focus its resources on the
activities whi...
Benefits of Being Customer Driven
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Service as a differentiator
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Quality of product or service is taken as a
prerequisi...
Benefits of Being Customer Driven
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Market information
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Having excellent links with customers provides an
organization ...
Cause marketing or causerelated marketing
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Cause marketing or cause-related
marketing refers to a type of marketing
invo...
Cause related marketing
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The term is sometimes used more broadly
and generally to refer to any type of
marketing effort ...
Types
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Cause marketing can take on many forms,
including:
Product, service, or transaction specific
Promotio...
Marketing ethics
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Marketing ethics is the area of
applied ethics which deals with the moral
principles behind the operat...
Frameworks of analysis for marketing
ethics
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Possible frameworks:
Value-oriented framework, analyzing ethical...
Specific issues in marketing ethics
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Market research
Market audience
Pricing ethics
List of unet...
Ethics in advertising and promotion
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Ethical pitfalls in advertising and promotional
content include:
Issues over tru...
Online marketing trends
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A market trend is a putative prevailing course or
tendency of a financial market to move in a
p...
Online marketing trends
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Definition: A form of marketing that
combines traditional marketing principles with
the unique ...
Online Marketing
Keywords to the Kingdom

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It’s all about the key words
•Definitions of 'keyword'
•- 3 definitions - Ame...
Other ideas…
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Opt-in newsletters
Permission-based Email
Imbedded advertising in music
downloads & videos
Digital ...
THANK YOU
Marketing management-ppt
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Marketing is an inevitable part of doing both business and non-business. This is emphasized in this presentation. A different focus of this kind is expected to add more value for the enthusiast.

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  • In SEO, we decided WHERE to place the keywords on our website.
    Online Marketing is all about finding and using the right keywords. Buying the right keywords and having your ads show when the right keywords are typed in the search query line. Weather the ad appears in the organic listings or the sponsored search results on top of them, or in a banner ad or a pop-up, the method in which it is shown is almost always decided by the keyword choice of the person doing the searching.
    Online marketing is generally accomplished by pushing your web site out to people, or by pulling people to your web site with advertising.
    Push marketing, is sending out emails, newsletters, postcards, or faxes to a select segment of potential consumers with enticing reasons to visit your web site. Offer those are repeat customers or pre-selected lists.
    Pull marketing, is pulling new customers into your store with advertisements and search engine organic rankings.
    For online advertising, the options are expanding all the time. Google offers AdWords, Yahoo serves up Search Marketing and there are a dozen or more smaller, more specialized PPC and CPM portals, like Business.com for the B2B trade, and Canada’s Mamma.com.
    PPC advertising. whereby your exact ad is shown when an exact keyword phrase is typed in. This is pull advertising, pulling people to your web site. The beauty of this type of advertising is that you can write a slightly different ad for each keyword, flavoring the same product or service several different ways depending on what folks are searching for.
    CPM, or cost-per-thousand (back when roman numbers were used in advertising and “m” stood for thousand) advertising is a bit different in that you only have one ad that appears for a set of key words, but instead of appearing in the results of a search engine, the ad appear on the web pages, or in the Gmails, of those sites and folks who are part of their AdSense program.
    Knowing which program, or which blend of programs, is right for you is a process that evolves over time as web site traffic is analyzed and keyword changes are monitored.
  • Opt-in newsletters
    Permission-based Email
    Embedded advertising in music downloads & videos
    Digital downloads of everything from tests for citizenship to movie trailers will have advertisements geared to a very targeted audience
  • Marketing management-ppt

    1. 1. MARKETING
    2. 2. Unit - 1  Introduction
    3. 3. Definition of marketing  Marketing is defined by the American Marketing Association [AMA] as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large."
    4. 4. Definition of marketing  Marketing (or advertising) is the process by which companies advertise products or services to potential customers. ."[1] It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return.[1]
    5. 5. Definition of marketing  Marketing is used to create the customer, to keep the customer and to satisfy the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. The evolution of marketing was caused due to mature markets and overcapacities in the last decades. Companies then shifted the focus from production to the customer in order to stay profitable .
    6. 6. Evolution of marketing       Barter Production orientation Sales orientation Marketing orientation Consumer orientation Management orientation
    7. 7. Meaning of market  Market includes both place and region in which buyers and sellers are in free competition with one another.
    8. 8. Classification of market         On the basis of area Goods Economics Transaction Regulation Time Volume Importance
    9. 9. What is marketed           Goods Services Experiences Events Persons Places Properties Organisations Information Ideas
    10. 10. Marketing environment    The term marketing environment relates to all of the factors (whether internal, external, direct or indirect) that affect a firm's marketing decision-making or planning and is subject of the marketing research. A firm's marketing environment consists of two main areas, which are: Macro micro
    11. 11. Marketing environment  Macro environment  On the macro environment a firm holds only little control. It consists of a variety of external factors that manifest on a large (or macro) scale. These are typically economic, social, political or technological phenomena. A common method of assessing a firm's macro-environment is via a PESTLE (Political, Economic, Social, Technological, Legal, Ecological) analysis. Within a PESTLE analysis, a firm would analyze national political issues, culture and climate, key macroeconomic conditions, health and indicators (such as economic growth, inflation, unemployment, etc.), social trends/attitudes, and the nature of technology's impact on its society and the business processes within the society.
    12. 12. Marketing environment  Micro environment  A firm holds a greater amount (though not necessarily total) control of the micro environment. It comprises factors pertinent to the firm itself, or stakeholders closely connected with the firm or company. A firm's micro environment typically spans:      Customers/consumers Employees Suppliers The Media By contrast to the macro environment, an organization holds a greater degree of control over these factors.
    13. 13. Selling vs marketing      Marketing is much wider than selling and much more dynamic. The fundamental differance between the two is that selling revolves around the needs and interest of the seller. Where as Marketing revolves around the needs and the interest of the buyers. Selling is an inside-out perspective. Its starts from factory, focuses on the company's existing products, and calls for heavy selling and promotion to obtain profitable sales. Marketing takes an outside-in perspective It starts with a well defined markert, focuses on customer needs, co-ordinates all the marketing activities affecting customers, and makes profits by creating customer satisfaction
    14. 14. Selling vs marketing     Marketing is the planning, pricing, promotion, packaging, advertising selling of any product or service. selling is only a sliver of the over all marketing of any product or service. But as Zig Ziglar says "nothing happens until someone sells something" and what he means is that sales is not a four letter word but a five letter word. Many marketing consultants talk about marketing as the "message to the consumer" or potential client or prospect. there is always a message in; Promoting, packaging, signage, advertising, Selling is also about delivering the message to the customer or prospect as well and it is a much closer message, person to person and selling can take the form of a telephone call, personal visit, demo, presentation or even an ad hoc or chance meeting with a conversation and later follow up.
    15. 15. Selling vs marketing   Most sales Managers Consider selling to be about report and relationship building; getting to know the potential customer or prospect their desires and needs and solving a problem by offering your product or service to them Marketing is in fact the act of 'bringing the product to market'. Selling is about closing a sale and turning a potential buyer into a customer. Closing a sale is also called a conversion.
    16. 16. Selling vs marketing     Broadly, Marketing creates the atmosphere to make it easy for sales to happen. Marketing consists things like: Marketing Strategy,target market etc. Sales" obviously is getting out and writing the orders ... tough disciplined work. This involves skills like "closing" the sale - very different skills to Marketing Good sales people do not make good marketers and vice versa ...
    17. 17. Global marketing  The Oxford University Press defines global marketing as “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives.”
    18. 18. Evolution to global marketing     Domestic marketing International marketing Multinational marketing Global marketing
    19. 19. GLOBAL MARKETING  When a company becomes a global marketer, it views the world as one market and creates products that will only require weeks to fit into any regional marketplace. Marketing decisions are made by consulting with marketers in all the countries that will be affected. The goal is to sell the same thing the same way everywhere.
    20. 20. Global marketing Advantages and Disadvantages           ADVANTAGES Economies of scale in production and distribution Lower marketing costs Power and scope Consistency in brand image Ability to leverage good ideas quickly and efficiently Uniformity of marketing practices Helps to establish relationships outside of the "political arena" Helps to encourage ancillary industries to be set up to cater for the needs of the global player
    21. 21. Disadvantages          Differences in consumer needs, wants, and usage patterns for products Differences in consumer response to marketing mix elements Differences in brand and product development and the competitive environment Differences in the legal environment, some of which may conflict with those of the home market Differences in the institutions available, some of which may call for the creation of entirely new ones (e.g. infrastructure) Differences in administrative procedures Differences in product placement.
    22. 22. Elements of the global marketing mix     Product Price Placement Promotion
    23. 23. Marketing interface with other functional areas     Production Finance Human relations management Information system
    24. 24. UNIT - 2  Marketing strategy
    25. 25. Marketing strategy  Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal.
    26. 26. Marketing strategy  Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe
    27. 27. Types of strategies  A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: "Use a low cost product to attract consumers
    28. 28. Types of strategies  Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies.
    29. 29. Types of strategies      Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies: Leader Challenger Follower Nicher
    30. 30. Types of strategies     Market dominance Porter generic strategies Innovation strategies Growth strategies
    31. 31. Industrial marketing  Industrial marketing is the marketing of goods and services from one business to another. Industrial goods are those which are used in Industry for producing a Different end product from one or more rawmaterials. The word "industrial" means machinery run by power to produce goods and services. But "industrial marketing" is not confined to these types of business activities. Broadly, marketing could be split into consumer marketing (B2C "Business to Consumer") and industrial marketing (B2B "Business to Business").
    32. 32. B2B Marketing Strategies B2B BRANDING PRODUCT PRICING PROMOTION PLACE
    33. 33. Who is customer in a B2B Sale?  The first category includes original equipment manufacturers, such as automakers, who buy gauges to put in their cars, and users, which are companies that purchase products for their own consumption. The second category, government agencies, is the biggest. In fact, the government is the biggest single purchaser of products and services in the country, spending more than $300 billion annually. But this category also includes state and local governments. The third category, institutions, includes schools, hospitals and nursing homes, churches and charities. Finally, resellers consist of wholesalers, brokers and industrial distributors.
    34. 34. CONSUMER MARKETING    B2C Business to Consumer (or "Consumer") Examples of the B2C selling/buying process are... A family are at home on a Sunday night and are watching television. An advertisement appears that advertises home delivered pizza. The family decides to order a pizza.  Walking down a supermarket aisle, a single man aged in his early 30's sees a hair care product that claims to reduce dandruff. He pick's the product and adds it to his shopping cart.  A pensioner visits her local shopping mall. She purchases a number of items including her favourite brand of tea. She has bought the same brand of tea for the last 18 years.
    35. 35. Consumer marketing         The main features of the B2C selling process are... Marketing is one-to-many in nature. It is not practical for sellers to individually identify the prospective customers nor meet them face-to-face. Lower value of purchase. Decision making is quite often impulsive (spur of the moment) in nature. Greater reliance on distribution (getting into retail outlets). More effort put into mass marketing (One to many). More reliance on branding. Higher use of (television, radio, print media) advertising to build the brand and to achieve top of mind awareness.
    36. 36. Services marketing       Services marketing is marketing based on relationship and value. It may be used to market a service or a product. There are several major differences, including: The buyer purchases are intangible The service may be based on the reputation of a single person It's more difficult to compare the quality of similar services The buyer cannot return the service
    37. 37. Competitor analysis     Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. Competitor array Competitor profiling Media scanning
    38. 38. Marketing mix      4 Ps of marketing PRODUCT PRICE PLACE PROMOTION
    39. 39. Why 7 ps   Process Physical evidence people
    40. 40. Unit – 3  Marketing mix decisions
    41. 41. product  Product Planning is the ongoing process of identifying and articulating that define a product’s feature set.
    42. 42. Chapter Goals To gain an understanding of:  The meaning of total “product” and “new” product  Classification of business and consumer products and its relevance to marketing planning  Product innovation  The product-development process  When to add new products to a product line  The adoption and diffusion process for products  Organizational structures for product planning and development
    43. 43. What is a Product?     it is more than physical products; includes services, places, persons, and ideas it is easy to visualize the products of Esso, but more difficult to describe those of the Toronto Symphony, UNICEF, or the Salvation Army some products are sold only to consumers, while others are sold to organizations whether a product is a consumer product or a business product depends on how it is used
    44. 44. Classifying Business Products      raw materials: unprocessed, become part of materials other manufactured products manufactured parts and materials: processed products that become part of other products installations: major buildings and equipment accessory equipment: used in operations, include computers, desks, tools operating supplies: low value, used by most supplies firms, convenience products for businesses
    45. 45. Product life cycle  Product life cycle management is the succession of strategies used by management and as a product goes through its product life cycle. The conditions in which a product is sold changes over time and must be managed as it moves through its succession of stages.
    46. 46. Product life cycle     Market introduction stage Growth stage Mature stage Saturation and decline stage
    47. 47. Market introduction stage       costs are high slow sales volumes to start little or no competition - competitive manufacturers watch for acceptance/segment growth losses demand has to be created customers have to be prompted to try the product makes no money at this stage
    48. 48. Growth stage       costs reduced due to economies of scale sales volume increases significantly profitability begins to rise public awareness increases competition begins to increase with a few new players in establishing market increased competition leads to price decreases
    49. 49. Mature stage       costs are lowered as a result of production volumes increasing and experience curve effects sales volume peaks and market saturation is reached increase in competitors entering the market prices tend to drop due to the proliferation of competing products brand differentiation and feature diversification is emphasized to maintain or increase market share Industrial profits go down
    50. 50. Decline stage     costs become counter-optimal sales volume decline or stabilize prices, profitability diminish profit becomes more a challenge of production/distribution efficiency than increased sales
    51. 51. The New Product Development Process 1. 2. 3. 4. 1. 2. 3. 4. Idea Screening Business Prototype Idea Screening Business Prototype generation generation of ideas of ideas analysis development analysis development 5. 5. Market Market Tests Tests 6. 6. CommerCommercialization cialization
    52. 52. Idea Generation    is often called the "fuzzy front end" of the NPD process Ideas for new products can be obtained from basic research using a SWOT analysis (Strengths, Weaknesses, Opportunities & Threats), Market and consumer trends, company's R&D department, competitors, focus groups, employees, salespeople, corporate spies, trade shows, or Ethnographic discovery methods (searching for user patterns and habits) may also be used to get an insight into new product lines or product features. Idea Generation or Brainstorming of new product, service, or store concepts - idea generation techniques can begin when you have done your OPPORTUNITY ANALYSIS to support your ideas in the Idea Screening Phase (shown in the next development step).
    53. 53. Idea Screening   The object is to eliminate unsound concepts prior to devoting resources to them. The screeners must ask at least three questions:  Will the customer in the target market benefit from the product?  What is the size and growth forecasts of the market segment/target market?  What is the current or expected competitive pressure for the product idea?  What are the industry sales and market trends the product idea is based on?  Is it technically feasible to manufacture the product?  Will the product be profitable when manufactured and delivered to the customer at the target price?
    54. 54. Concept development and testing   Develop the marketing and engineering details  Who is the target market and who is the decision maker in the purchasing process?  What product features must the product incorporate?  What benefits will the product provide?  How will consumers react to the product?  How will the product be produced most cost effectively?  Prove feasibility through virtual computer aided rendering, and rapid prototyping  What will it cost to produce it? Testing the Concept by asking a sample of prospective customers what they think of the idea. Usually via Choice Modelling.
    55. 55. Business Analysis    Estimate likely selling price based upon competition and customer feedback Estimate sales volume based upon size of market and such tools as the Fourt-Woodlock equation Estimate profitability and breakeven point
    56. 56. Beta Testing and Market Testing      Produce a physical prototype or mock-up Test the product (and its packaging) in typical usage situations Conduct focus group customer interviews or introduce at trade show Make adjustments where necessary Produce an initial run of the product and sell it in a test market area to determine customer acceptance
    57. 57. Technical Implementation           New program initiation Resource estimation Requirement publication Engineering operations planning Department scheduling Supplier collaboration Logistics plan Resource plan publication Program review and monitoring Contingencies - what-if planning
    58. 58. Commercialization (often considered post-NPD)     Launch the product Produce and place advertisements and other promotions Fill the distribution pipeline with product Critical path analysis is most useful at this stage
    59. 59. New Product Pricing       Impact of new product on the entire product portfolio Value Analysis (internal & external) Competition and alternative competitive technologies Differing value segments (price, value, and need) Product Costs (fixed & variable) Forecast of unit volumes, revenue, and profit
    60. 60. Market segmentation  A market segment is a group of people or organizations sharing one or more characteristics that cause them to have similar product and/or service needs.
    61. 61. Market segmentation  A true market segment meets all of the following criteria: it is distinct from other segments (different segments have different needs), it is homogeneous within the segment (exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a market intervention.
    62. 62. Market segmentation  The term is also used when consumers with identical product and/or service needs are divided up into groups so they can be charged different amounts. These can broadly be viewed as 'positive' and 'negative' applications of the same idea, splitting up the market into smaller groups
    63. 63. Patterns for market segmentation    Homogeneous preferences Diffused preferences Clustered prefences
    64. 64. Market segmentation procedure    Survey stage Analysis stage Profiling stage
    65. 65. Segmenting consumer and business markets       Segmenting consumer markets Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation Multi – attribute segmentation (geoclustering)
    66. 66. Basis for segmenting business markets        First time prospects Novices Sophisticates Programmed buyers Relationship buyers Transaction buyers Bargain hunters
    67. 67. Effective segmentation     Measurable Substantial Accessible Actionable
    68. 68. Market targeting  A 'target market or target Audience is the market segment which a particular product is marketed to. It is often defined by age, gender and/or socio-economic grouping. Market Targeting is the process in which intended actual markets are defined, analyzed and evaluated just before the final decision to enter is made.
    69. 69. Market positioning   Once a market segment has been identified (via segmentation), and targeted (in which the viability of servicing the market intended), the segment is then subject to positioning. Positioning involves ascertaining how a product or a company is perceived in the minds of consumers. This part of the segmentation process consists of drawing up a perceptual map, which highlights rival goods within one's industry according to perceived quality and price. After the perceptual map has been devised, a firm would consider the marketing communications mix best suited to the product in question.
    70. 70. Market channel  Market channel are sets of of interdependent organizations involved in the process of making a product or service use or consumption.  A marketing channel is a set of practices or activities necessary to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption and, as such, which consists of all the institutions and all the marketing activities in the marketing process. A marketing channel is a useful tool for management. [1]
    71. 71. Roles of marketing channel in marketing strategy:      Links producers to buyers. Performs sales, advertising and promotion. Influences the firm's pricing strategy. Affecting product strategy through branding, policies, willingness to stock and customizes profits, install, maintain, offer credit, etc. An example of this is Apple orchard: Apple orchard >Transport > Processing factory > Packaging > > Final product to be sold > Apple pie eaten
    72. 72. Distribution channel  An alternative term is distribution channel. It is a 'path' or 'pipeline' through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them flow in the opposite direction (from consumer to the vendor). A marketing channel can be as short as being direct from the vendor to the consumer or may include several inter-connected (usually independent but mutually dependent) intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer.
    73. 73. Advertising  Defn: Any paid form of non personal presentations and promotion of ideas goods and services by an identified sponsor.
    74. 74. Advertisement objective    Informative advertising Persuasive advertising Reminder advertising
    75. 75. Types of advertising        Television Infomercials Radio ad Print ad Online ad Billboard ad celebrities
    76. 76. Sales promotion  Sales promotion consists of a diverse collection of intensive tools,mostly short term, mostly designed to stimulate quicker or greater purchase of particular products or service by consumers or the trade
    77. 77. Sales promotion techniques         Samples Coupons Cash refund offers Price packs Premiums Prizes Patronage awards Free trials
    78. 78. Pricing   Price is the amount that we pay for goods, services or ideas. Price is the exchange value between buyers and sellers.
    79. 79. Objectives of pricing     Survival pricing Current profit max pricing Market share pricing Product quality leadership
    80. 80. Approaches to pricing    Cost based Competition based Demand based
    81. 81. Unit - 4  Buyer behaviour
    82. 82. Buyer behaviour      Introduction An important part of the marketing process is to understand why a customer or buyer makes a purchase. Without such an understanding, businesses find it hard to respond to the customer’s needs and wants. Marketing theory traditionally splits analysis of buyer or customer behaviour into two broad groups for analysis – Consumer Buyers and Industrial Buyers Consumer buyers are those who purchase items for their personal consumption
    83. 83. Industrial buyers      Industrial buyers are those who purchase items on behalf of their business or organisation Businesses now spend considerable sums trying to learn about what makes “customers tick”. The questions they try to understand are: • Who buys? • How do they buy? • When do they buy? • Where do they buy? • Why do they buy? For a marketing manager, the challenge is to understand how customers might respond to the different elements of the marketing mix that are presented to them. If management can understand these customer responses better than the competition, then it is a potentially significant source of competitive advantage.
    84. 84. Consumer Buying Behaviour       1. Problem/Need Recognition 2. Information search 3. Evaluation of different purchase options. 4. Purchase decision Post purchase behaviour. Culture has an impact on the company. Marketers should take into account Maslows hierarchy of needs.
    85. 85. Online buyer behaviour
    86. 86. Consumer Behavior Online  Consumer types  Individual consumers   Organizational buyers     Commands most of the media’s attention Governments and public organizations Private corporations Resellers Purchasing types and experiences  2 dimensions of shopping experiences    Utilitarian—to achieve a goal Hedonic—because it’s fun 3 categories of consumers    Impulsive buyers—purchase quickly Patient buyers—make some comparisons first Analytical buyers—do substantial research before buying
    87. 87. Demographics of Internet Surfers     Environmental variables  Social variables – influenced by peers  Cultural variables  Psychological variables  Other environmental variables - e.g. government restrictions Personal characteristics / demographics  Consumer resources and lifestyle  Age; gender; marital status  Knowledge and educational level  Attitudes and values  Motivation  Personality  Ethnicity More experience on Web  more to buy online Two major reasons people do not buy online  Security  Difficulty judging the quality of the product
    88. 88. Major Roles in Purchasing  5 major roles  Initiator   Influencer   Makes a buying decision or any part of it Buyer   Advice/views carry weight in making a final buying decision Decider   Suggests/thinks of buying a particular product or service Makes the actual purchase User  Consumes or uses a product or service
    89. 89. Purchasing decision-making model  5 major phases      Need identification  marketer must get customer to recognise need  Banner and URL advertising, community discussions Information search  Web directories, search engines Alternatives evaluation  Newsgroup discussions, cross-site comparisons Purchase and delivery  Electronic cash, virtual banking After-purchase evaluation—customer service  Discussions in newsgroups
    90. 90. Consumer Satisfaction
    91. 91. CRM  Customer relationship management is a broadly recognized, widely-implemented strategy for managing and nurturing a company’s interactions with customers and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales related activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new customers, nurture and retain those the company already has, entice former customers back into the fold, and reduce the costs of marketing and customer service.
    92. 92. CRM  CRM stands for Customer Relationship Management. It is a process or methodology used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. There are many technological components to CRM, but thinking about CRM in primarily technological terms is a mistake. The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends.
    93. 93. CRM  CRM helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers.
    94. 94. CUSTOMER ACQUISITION  Customer acquisition management is a term used to describe the methodologies and systems to manage customer prospects and inquiries, generally generated by a variety of marketing techniques. It can be considered the connectivity between advertising and customer relationship management. This critical connectivity facilitates the acquisition of targeted customers, in the most effective fashion.
    95. 95. Customer Retention  Customer Retention is the activity that a selling organization undertakes in order to reduce customer defections. Successful customer retention starts with the first contact an organization has with a customer and continues throughout the entire lifetime of a relationship. A company’s ability to attract and retain new customers, is not only related to its product or services, but strongly related to the way it services its existing customers and the reputation it creates within and across the marketplace.
    96. 96. Customer retention  Customer retention is more than giving the customer what they expect, it’s about exceeding their expectations so that they become loyal advocates for your brand. Creating customer loyalty puts ‘customer value rather than maximizing profits and shareholder value at the center of business strategy’ [1]. The key differentiator in a competitive environment is more often than not the delivery of a consistently high standard of customer service.
    97. 97. Customer defection(attrition)  When companies are measuring their customer turnover, they typically make the distinction between gross attrition and net attrition. Gross attrition is the loss of existing customers and their associated recurring revenue for contracted goods or services during a particular period.
    98. 98. Unit – 5  Market research and trends in marketing
    99. 99. Marketing Information System  A Marketing Information System can be defined as 'a system in which marketing information is formally gathered, stored, analysed and distributed to managers in accord with their informational needs on a regular basis'
    100. 100. Marketing Information Systems  Marketing Research      What is Marketing Research? Process Terminology Techniques MKIS - Marketing Information Systems   What is MKIS Components of an electronic MKIS
    101. 101. Marketing Research the systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services’ American Marketing Association
    102. 102. The Marketing Research Process Define research Problem Assess the value of the research Construct a research proposal Specify data collection method Specify techniques of measurement Select the sample Data collection Analysis of results Present in a final report
    103. 103. Terminology of Marketing Research      Primary data - collected firsthand Secondary data - already exists, desk research Quantitative research - statistical basis Qualitative research - subjective and personal sampling - studying part of a ‘population’ to learn about the whole
    104. 104. Marketing Research Techniques  Interviews     face-to-face telephone postal questionnaire Attitude measurement    cognitive component (know/believe about an act/object) affective component (feel about an act/object) conative component (behave towards an object or act)
    105. 105.  Likert scale        strongly agree agree neither agree nor disagree disagree strongly disagree Semantic differential scales - differences between words e.g. practical v impractical Projective techniques    sentence completion psychodrama (yourself as a product) friendly martian (what someone else might do)
    106. 106.       Group discussion and focus group Postal research questionnaires Diary panels - sources of continuous data In-home scanning - hand-held light pen to scan barcodes Telephone research Observation    home audit direct observation In-store testing
    107. 107. Product advertising  Advertising research is a specialized form of research that works to improve the effectiveness and efficiency of advertising. It entails numerous forms of research which employ different methodologies.  Advertising research includes pre-testing (also known as copy testing) and post-testing of ads and/or campaigns—pretesting is done before an ad airs to gauge how well it will perform and post-testing is done after an ad airs to determine the inmarket impact of the ad or campaign on the consumer. Continuous ad tracking and the Communicus System are competing examples of post-testing advertising research types. 
    108. 108. promotion  Promotion involves disseminating information about a product, product line, brand, or company. It is one of the four key aspects of the marketing mix. (The other three elements are product marketing, pricing , place.)
    109. 109.    Promotion is generally sub-divided into two parts: Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers, Internet, Mobile Phones, and, historically, illustrated songs) in which the advertiser pays an advertising agency to place the ad Below the line promotion: All other promotion. Much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place. E.g. sponsorship, product placement, endorsements, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows
    110. 110. promotional mix       There are four main aspects of a promotional mix. Advertising Personal selling Sales promotion Public relation Direct marketing
    111. 111. The Customer Driven Organization
    112. 112. Learning Objectives  When you have completed this module you will be able to define the key concepts associated with the Customer Driven Organization and you will be able to:  Understand the vital importance of the customer to any organization  See the value in having excellent service for both internal and excellent customers  Identify the factors that can prevent an organization from maximizing customer value
    113. 113. Learning Objectives  Understand how to critically look at the customer service levels and to establish if the organization is truly customer driven  Identify different customer types and interact appropriately with them
    114. 114. What is a Customer Driven Organization?  A customer driven organization is one that:  Listens to its customers  Integrates customers into its business and vice versa  Provides customer focused solutions  Has a culture which positively embraces the customer
    115. 115. Benefits of Being Customer Driven  The organization gains the following benefits: Loyalty of Customers Focus on value add Service as a differentiator Market information Higher profits
    116. 116. Benefits of Being Customer Driven  Loyalty of customers  Customers will stay where they feel they are being valued  Customers will receive what they require  Customers will trust the organization  Business will be protected from the competitors
    117. 117. Benefits of Being Customer Driven  Focus on value add  The organization will focus its resources on the activities which add value for the customer  Customer driven operations focus on what the customer wants  Core competencies can be identified and developed so as to deliver what the customer values
    118. 118. Benefits of Being Customer Driven  Service as a differentiator  Quality of product or service is taken as a prerequisite for doing business - service is what differentiates customer driven organizations  Service will increase loyalty  Service becomes a cultural aspect aswell as a functional aspect of the organization
    119. 119. Benefits of Being Customer Driven  Market information  Having excellent links with customers provides an organization with access to information on the market     Market growth rate Competitor activity Customer buying trends Requirements for new products and services
    120. 120. Cause marketing or causerelated marketing  Cause marketing or cause-related marketing refers to a type of marketing involving the cooperative efforts of a "for profit" business and a non-profit organization for mutual benefit.
    121. 121. Cause related marketing  The term is sometimes used more broadly and generally to refer to any type of marketing effort for social and other charitable causes, including in-house marketing efforts by non-profit organizations. Cause marketing differs from corporate giving (philanthropy) as the latter generally involves a specific donation that is tax deductible, while cause marketing is a marketing relationship generally not based on a donation.
    122. 122. Types       Cause marketing can take on many forms, including: Product, service, or transaction specific Promotion of a common message Product licensing, endorsements, and certifications Local partnerships Employee service programs
    123. 123. Marketing ethics  Marketing ethics is the area of applied ethics which deals with the moral principles behind the operation and regulation of marketing. Some areas of marketing ethics (ethics of advertising and promotion) overlap with media ethics.
    124. 124. Frameworks of analysis for marketing ethics      Possible frameworks: Value-oriented framework, analyzing ethical problems on the basis of the values which they infringe (e.g. honesty, autonomy, privacy, transparency). An example of such an approach is the AMA Statement of Ethics.[1] Stakeholder-oriented framework, analysing ethical problems on the basis of whom they affect (e.g. consumers, competitors, society as a whole). Process-oriented framework, analysing ethical problems in terms of the categories used by marketing specialists (e.g. research, price, promotion, placement). None of these frameworks allows, by itself, a convenient and complete categorization of the great variety of issues in marketing ethics
    125. 125. Specific issues in marketing ethics              Market research Market audience Pricing ethics List of unethical pricing practices. price fixing price skimming price discrimination variable pricing predatory pricing supra competitive pricing price war bid rigging dumping (pricing policy)
    126. 126. Ethics in advertising and promotion   Ethical pitfalls in advertising and promotional content include: Issues over truth and honesty. In the 1940s and 1950's, tobacco used to be advertised as promoting health.[15] Today an advertiser who fails to tell the truth not only offends against morality but also against the law. However the law permits "puffery" (a legal term).[16] The difference between mere puffery and fraud is a slippery slope: "The problem... is the slippery slope by which variations on puffery can descend fairly quickly to lies."[17] See main article: false advertising.
    127. 127. Online marketing trends  A market trend is a putative prevailing course or tendency of a financial market to move in a particular direction over time.[1] These trends are classified as secular trends for long-term time frames, primary trends for mid-term periods, and secondary trends lasting short times.[2] Traders identify market trends using technical analysis, a framework which characterizes market trends as a predictable price response of the market at levels of price support and price resistance, varying over time.
    128. 128. Online marketing trends  Definition: A form of marketing that combines traditional marketing principles with the unique interactive qualities of the Internet. The purpose is to deliver products and services that satisfy customers. Online marketers devise plans and campaigns to attract customers to a Web site and to encourage them to register their names or purchase products.
    129. 129. Online Marketing Keywords to the Kingdom  It’s all about the key words •Definitions of 'keyword' •- 3 definitions - American Heritage Dictionary keyword (n.) A word that serves as a key to a code or cipher. keyword (n.) A significant or descriptive word. keyword (n.) A word used as a reference point for finding other words or information. What is PPC? What is CPM?
    130. 130. Other ideas…     Opt-in newsletters Permission-based Email Imbedded advertising in music downloads & videos Digital downloads of everything from tests for citizenship to movie trailers will have advertisements geared to a very targeted audience
    131. 131. THANK YOU

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