Marketing Module Mix
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Transcript of Marketing Module Mix
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Marketing and selling Relationship marketing
Relationship marketing was first defined as a form of marketing developed from direct
response marketing campaigns which emphasizescustomer retentionand satisfaction, rather than
a dominant focus on sales transactions.[citation needed]
As a practice, relationship marketing differs from other forms of marketing in that it recognizesthe long term value of customer relationships and extends communication beyond intrusive
advertising and sales promotional messages.[citation needed]
With the growth of the internet and mobile platforms, relationship marketing has continued to
evolve and move forward as technology opens more collaborative and social communication
channels. This includes tools for managing relationships with customers that goes beyond simple
demographic and customer service data. Relationship marketing extends to include inbound
marketing efforts, (a combination of search optimization and strategic content), PR, social media
and application development. Relationship marketing is a broadly recognized, widely-
implemented strategy for managing and nurturing a companys interactions with clients and sales
prospects.[citation needed] It also involves using technology to organize, synchronize business
processes, (principally sales and marketing activities), and most importantly, automate those
marketing and communication activities on concrete marketing sequences that could run in
autopilot, (also known as marketing sequences). The overall goals are to find, attract and win
new clients, nurture and retain those the company already has, entice former clients back into the
fold, and reduce the costs of marketing and client service. [1] Once simply a label for a category
of software tools, today, it generally denotes a company-wide business strategy embracing all
client-facing departments and even beyond. When an implementation is effective, people,
processes, and technology work in synergy to increase profitability, and reduce operational costs
http://en.wikipedia.org/wiki/Customer_retentionhttp://en.wikipedia.org/wiki/Customer_retentionhttp://en.wikipedia.org/wiki/Customer_retentionhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Customer_retention -
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Social marketing:
social marketing is the systematic application ofmarketing, along with other concepts and
techniques, to achieve specific behavioral goals for a social good.[1]
Social marketing can be
applied to promotemerit goods, or to make a society avoid demerit goods and thus promote
society's well being as a whole. For example, this may include asking people not to smoke inpublic areas, asking them to use seat belts, or prompting to make them follow speed limits.
Although "social marketing" is sometimes seen only as using standard commercial marketing
practices to achieve non-commercial goals, this is an oversimplification. The primary aim of
social marketing is "social good", while in "commercial marketing" the aim is primarily
"financial". This does not mean that commercial marketers can not contribute to achievement of
social good.
Increasingly, social marketing is being described as having "two parents"a "social parent" =
social sciences and social policy, and a "marketing parent" = commercial and public sector
marketing approaches.[citation needed]
Beginning in the 1950s when Weibe[who?]
asked "Why cant you sell brotherhood and rational
thinking like you can sell soap?, the concept has in the last two decades matured into a much
more integrative and inclusive discipline that draws on the full range of social sciences and
social policy approaches as well as marketing.
http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Social_marketing#cite_note-0http://en.wikipedia.org/wiki/Social_marketing#cite_note-0http://en.wikipedia.org/wiki/Social_marketing#cite_note-0http://en.wikipedia.org/wiki/Merit_goodhttp://en.wikipedia.org/wiki/Merit_goodhttp://en.wikipedia.org/wiki/Merit_goodhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Merit_goodhttp://en.wikipedia.org/wiki/Social_marketing#cite_note-0http://en.wikipedia.org/wiki/Marketing -
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CRM:
Customer relationship management (CRM) is a widely implemented model for managing a
companys interactions withcustomers, clients, and sales prospects. It involves using technology
to organize, automate, and synchronize business processesprincipallysalesactivities, but also
those formarketing,customer service, andtechnical support.[1]The overall goals are to find,
attract, and win new clients, service and retain those the company already has, entice former
clients to return, and reduce the costs of marketing and client service.[2]
Customer relationship
management describes a company-wide business strategy including customer-interface
departments as well as other departments.[3]
Measuring and valuing customer relationships is
critical to implementing this strategy.
http://en.wikipedia.org/wiki/Customershttp://en.wikipedia.org/wiki/Customershttp://en.wikipedia.org/wiki/Customershttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Technical_supporthttp://en.wikipedia.org/wiki/Technical_supporthttp://en.wikipedia.org/wiki/Customer_relationship_management#cite_note-1http://en.wikipedia.org/wiki/Customer_relationship_management#cite_note-1http://en.wikipedia.org/wiki/Customer_relationship_management#cite_note-1http://en.wikipedia.org/wiki/Customer_relationship_management#cite_note-hot-2http://en.wikipedia.org/wiki/Customer_relationship_management#cite_note-hot-2http://en.wikipedia.org/wiki/Customer_relationship_management#cite_note-hot-2http://en.wikipedia.org/wiki/Customer_relationship_management#cite_note-dest1-3http://en.wikipedia.org/wiki/Customer_relationship_management#cite_note-dest1-3http://en.wikipedia.org/wiki/Customer_relationship_management#cite_note-dest1-3http://en.wikipedia.org/wiki/Customer_relationship_management#cite_note-dest1-3http://en.wikipedia.org/wiki/Customer_relationship_management#cite_note-hot-2http://en.wikipedia.org/wiki/Customer_relationship_management#cite_note-1http://en.wikipedia.org/wiki/Technical_supporthttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Customers -
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Product life cycle:
Product life cycle is the stages through which a product or its category bypass. From its
introduction to the marketing, growth, maturity to its decline or reduce in demand in the market.
Not all product reach this final stage, some continues to grow and some rise and fall.
Stages of product life cycleIntroduction
This is the stage of low growth rate of sales as the product in newly launched in the market.
Monopoly can be created, depending upon the efficiency and need of the product to the
customers. A firm usually incurs losses rather than profit. If the product is in the new product
class, the users may not be aware of its true potential. In order to achieve that place in the
market, extra information about the product should be transferred to consumers through various
media.The stage has the following characteristics. 1. Low competition 2. Firm mostly incurs
losses and not profit.
Growth
Growth comes with the acceptance of the innovation in the market and profit starts to flow. As
the monopoly still exists manufacturer can experiment with its new ideas and innovation in order
to maintain the sales growth. It is the best time to introduce new effective product in the market
thus creating an image in the product class in the presence of its competitors who tries to copy or
improve the product and present it as a substitute me.
Maturity
In this the end stage of the growth rate, sales slowdown as the product have already achieved it
acceptance in the market. So new firms starts experimenting in order to compete by innovating
new models of the product. With many companies in the market, competition for customers
becomes fierce, even though the increase in the growth rate of sales at the initial part of this
stage. Aggressive competition in the market results the profit to acme at the end of the growth
stage thus beginning the maturity stage.
DeclineThis is the stage where most of the product class usually dies due to the low growth rate in sales.
As number of companies starts dominating the market, makes it difficult for the existing
company to maintain its sale. Not only the efficiency of the company play an important factor in
the decline, but also the product category itself becomes a factor, as market may perceive the
product as 'OLD' and may not be in demand.
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Product distribution channels:
Producer-Customer:- This is the simplest and shortest channel in which no middlemen isinvolved and producers directly sell their products to the consumers. It is fast and economical
channel of distribution. Under it, the producer or entrepreneur performs all the marketing
activities himself and has full control over distribution. A producer may sell directly toconsumers through door-to-door salesmen, direct mail or through his own retail stores. Big firms
adopt this channel to cut distribution costs and to sell industrial products of high value. Small
producers and producers of perishable commodities also sell directly to local consumers.
Producer-Retailer-Customer:- This channel of distribution involves only one middlemencalled 'retailer'. Under it, the producer sells his product to big retailers (or retailers who buy
goods in large quantities) who in turn sell to the ultimate consumers.This channel relieves the
manufacturer from burden of selling the goods himself and at the same time gives him control
over the process of distribution. This is often suited for distribution of consumer durables and
products of high value.
Producer-Wholesaler-Retailer-Customer :- This is the most common and traditional channel ofdistribution. Under it, two middlemen i.e. wholesalers and retailers are involved. Here, the
producer sells his product to wholesalers, who in turn sell it to retailers. And retailers finally sell
the product to the ultimate consumers. This channel is suitable for the producers having limited
finance, narrow product line and who needed expert services and promotional support of
wholesalers. This is mostly used for the products with widely scattered market.
Producer-Agent-Wholesaler-Retailer-Customer :- This is the longest channel of distribution inwhich three middlemen are involved. This is used when the producer wants to be fully relieved
of the problem of distribution and thus hands over his entire output to the selling agents. The
agents distribute the product among a few wholesalers. Each wholesaler distribute the productamong a number of retailers who finally sell it to the ultimate consumers. This channel is
suitable for wider distribution of various industrial products.
How to choose:
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Product Consideration:- The type and the nature of products manufactured is one of theimportant elements in choosing the distribution channel. The major product related factors are:-
Products of low unit value and of common use are generally sold through middlemen.Whereas,expensive consumer goods and industrial products are sold directly by the producer
himself.
Perishable products; products subjected to frequent changes in fashion or style as well as heavyand bulky products follow relatively shorter routes and are generally distributed directly to
minimise costs.
Industrial products requiring demonstration, installation and aftersale service are often solddirectly to the consumers. While the consumer products of technical nature are generally sold
through retailers.
An entrepreneur producing a wide range of products may find it economical to set up his ownretail outlets and sell directly to the consumers. On the other hand, firms producing a narrow
range of products may their products distribute through wholesalers and retailers.
A new product needs greater promotional efforts in the initial stages and hence few middlemenmay be required.
Market Consideration:- Another important factor influencing the choice of distribution channelis the nature of the target market. Some of the important features in this respect are:-
If the market for the product is meant for industrial users, the channel of distribution will notneed any middlemen because they buy the product in large quantities. short one and may as they
buy in a large quantity. While in the case of the goods meant for domestic consumers,
middlemen may have to be involved.
If the number of prospective customers is small or the market for the product is geographicallylocated in a limited area, direct selling is more suitable. While in case of a large number of
potential customers, use of middlemen becomes necessary.
If the customers place order for the product in big lots, direct selling is preferred. But,if theproduct is sold in small quantities, middlemen are used to distribute such products.
Other Considerations:- There are several other factors that an entrepreneur must take intoaccount while choosing a distribution channel. Some of these are as follows:-
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A new business firm may need to involve one or more middlemen in order to promote itsproduct, while a well established firm with a good market standing may sell its product directly
to the consumers.
A small firm which cannot invest in setting up its own distribution network has to depend onmiddlemen for selling its product. On the other hand, a large firm can establish its own retail
outlets. The distribution costs of each channel is also an important factor because it affects the price of
the final product. Generally,a less expensive channel is preferred. But sometimes, a channel
which is more convenient to the customers is preferred even if it is more expensive.
If the demand for the product is high,more number of channels may be used to profitablydistribute the product to maximum number of customers. But, if the demand is low only a few
channels would be sufficient.
The nature and the type of the middlemen required by the firm and its availability also affects thechoice of the distribution channel. A company prefers a middlemen who can maximise the
volume of sales of their product and also offers other services like storage, promotion as well as
aftersale services. When the desired type of middlemen are not available, the manufacturer will
have to establish his own distribution network.
Marketing Philosophies:
there are 5 alternative concepts under which organisations may conduct their marketing
activities: the production concept, product, selling and societal marketing concepts.
1. THE PRODUCTION CONCEPT:
the philosophy that consumers will favor products that are available and highly affordable, that
management should therefore focus on improving production and distribution efficiency.
2. THE PRODUCT CONCEPT:
the idea that consumers favor products that offer the most quality, performance and features, and
that the organisation should therefore devote its energy into making continuous product
improvements; a detailed version of the new product idea.
3. THE SELLING CONCEPT:
the idea that consumers wont buy enough of the organisations products unless the organisation
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undertakes a large-scale selling and promotion effort.
4. THE MARKETING CONCEPT:
achieving organisational goals depends on determining the needs and wants of its target market
and delivering the desired satisfaction more effectively and efficiently than competitors.
5. THE SOCIETAL MARKETING CONCEPT:
the idea that the organisation should determine the needs, wants and interests of target markets
and deliver the desired satisfaction more effectively and efficiently than competitors in a way
that maintains or improves the consumers and society's well being.