MS -06 REFERENCE MATERIAL MARKETING FOR MANAGERS 1 a)
Discuss the distinguishing characteristics of services which make them them different from tangible goods. What are the implications of these characteristics in marketing of services?
A service is the intangible equivalent of an economic good. Service provision is often an economic activity where the buyer does not generally, except by exclusive contract, obtain exclusive ownership of the thing purchased. The benefits of such a service, if priced, are held to be self-evident in the buyers willingness to pay for it. Public services are those society pays for as a whole through taxes and other means. By composing and orchestrating the appropriate level of resources, skill, ingenuity,and ingenuity,and experience for effecting specific benefits for service consumers, service providers participate in an economy without the restrictions of carrying stock (inventory) stock (inventory) or the need to concern themselves with bulky raw materials. On the other hand, their investment in expertise does require consistent service marketing and upgrading in the face of competition which has equally few physical restrictions. Many so-called services, however, require large physical structures and equipment, and consume large amounts of resources, such as transportation services and the military. Services can be paraphrased in terms of their generic key characteristics . 1. Intangibility
Services are intangible and insubstantial: insubstantial: they cannot be touched, gripped, handled, looked at, smelled, tasted or heard. Thus, there is neither potential nor need for transport, storage or stocking of services. Furthermore, a service cannot be (re)sold or owned by somebody, neither can it be turned over from the service provider to the service consumer nor returned from the service consumer to the service provider. Solely, the service delivery can be commissioned to a service provider who must generate and render the service at the distinct request of an authorized service consumer. 2. Perishability
Services are perishable in two regards •
•
The service relevant resources, processes and systems are assigned for service delivery during a definite period in time. If the designated or scheduled service consumer does not request and consume the service during this period, the service cannot be performed for him. From the perspective of the service provider, this is a lost business opportunity as he cannot charge any service delivery; potentially, he can assign the resources, processes and systems to another service consumer who requests a service. Examples: The hair dresser serves another client when the scheduled starting time or time slot is over. An empty seat on a plane never can be utilized and charged after departure. When the service has been completely rendered to the requesting service consumer, this particular service irreversibly vanishes as it has been consumed by the service consumer. Example: the passenger has been transported to the destination and cannot be transported again to this location at this point in time.
3. Inseparability
The service provider is indispensable for service delivery as he must promptly generate and render the service to the requesting service consumer. In many cases the service delivery is executed automatically but the service provider must preparatorily assign resources and systems and actively keep up appropriate service delivery readiness and capabilities. Additionally, the service consumer is inseparable from service delivery because he is involved in it from requesting it up to consuming the rendered benefits. Examples: The service consumer must sit in the hair dresser's shop & chair or in the plane & seat; correspondingly, the hair dresser or the pilot must be in the same shop or plane, respectively, for delivering the service.
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4. Variability
Each service is unique. It is one-time generated, rendered and consumed and can never be exactly repeated as the point in time, location, circumstances, conditions, current configurations and/or assigned resources are different for the next delivery, even if the same service consumer requests the same service. Many services are regarded as heterogeneous or lacking homogeneity and are typically modified for each service consumer or consumer or each new situation (consumerised). (consumerised). Example: The taxi service which transports the service consumer from his home to the opera is different from the taxi service which transports the same service consumer from the opera to his home – another point in time, the other direction, maybe another route, probably another taxi driver and cab. Each of these characteristics is retractable per se and their inevitable coincidence complicates complicates the consistent service conception and make service delivery a challenge in each and every case. Proper service marketing requires creative visualization to effectively evoke a concrete image in the service consumer's consumer' s mind. From the service consumer's point of view, these characteristics characteristics make it difficult, or even impossible, to evaluate or compare services prior to experiencing the service delivery. The implications of these services are 1. 2. 3. 4.
The work work is not going going to to be one one and and the the same same It vari varies es from from one one to to one one There There is is chan change ge is is the the work work cont content ent The The wor work k met metho hod d is is cha chang nged ed..
1.b) What do you understand from from Segmentation, Segmentation, Targeting and Positioning (STP) (STP) strategies?
Before start think about marketing (4P), you must understand what is STP. Terms of STP include : market strategy; target markets; positioning; market segmentation and target markets; market segmentation and demographics. Segmentation Segmentation : Identifying al segments for the product/service. Many of the resources listed in module 3 will be helpful to you when you develop segments. To be useful, segments should be:
Measurable Accessible (can you reach them) Profitable Distinct from one another The objective of segmentation is to find attractive markets. Strategies include Break market into components Regroup into market segments Select which segment to target Positioning.
Positioning is an essential component -- and skill - in good marketing. Perceptual maps are used to determine the position of a product, firm, person, service or idea. Positioning maps, or perceptual maps can be simple, yet very effective marketing tools. One definition of Positioning Theory is: the science of perceptual strategy. It is based on a theory that strategy can only be planned in the mind of the consumer, not the marketplace*. It is important to understand the levels of competition because positioning applies at all levels of competition. For example:
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Product Level (e.g., Pepsi vs. Coke) Category Level (e.g., Cola vs. Root beer) Corporate Level (e.g., Pepsi Inc. vs. Coca Cola Company) Industry Level (e.g., Beverage Industry vs. Snack food Industry) Targeting. What is target?. This is the real goal/objective in market that marketer want to reach.
As a simple questions are : What percent of the population uses the product at all? What percent uses your brand? How does that compare to competing brands? What is the demographic profile of the product category? Which media reach the users of this category?
2 a) How does does Market Marketing ing Resear Research ch aid Market Marketing ing Manage Managers rs in dec decisio ision n making making? ? Discus Discusss examples
with with
suitab suitable le
Marketing Marketing is the activity, activity, set of instituti institutions, ons, and processes processes for creating, creating, communica communicating, ting, delivering, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Good customer relationships often result in exchanges; that is, a good or service is exchanged for money. The potential for exchange exists when there are at least two parties and each has something of potential value to the other. When the two parties can communicate and deliver the desired goods or services, exchange can take place. How do marketing managers attempt to stimulate exchange? They follow the “right” principle. They attempt to get the right goods or services to the right people at the right place at the right time at the right price, using the right promotion techniques. The “right” principle describes how marketing managers control the many factors that ultimately determine marketin marketing g success. success. To make the “right” “right” decisions, decisions, managemen managementt must have timely timely decisiondecision-maki making ng informati information. on. Marketing research is a primary channel for providing that information. The task of marketing research (MR) is to provide management with relevant, accurate, reliable, valid, and current information. Competitive marketing environment and the ever-increasing costs attributed to poor decision making require that marketing research provide sound information. Sound decisions are not based on gut feeling, intuition, or even pure judgment. Marketing managers make numerous strategic and tactical decisions in the process of identifying and satisfying customer needs. They make decisions about potential opportunities, target market selection, market segmentation, planning and implementing marketing programs, marketing performance, and control. These decisions are complicated by interactions between the controllable marketing variables of product, pricing, promotion, and distribution. Further complications are added by uncontrollable environmental factors such as general economic conditions, technology, public policies and laws, political environment, competition, and social and cultural changes. Another factor in this mix is the complexity of consumers of consumers.. Marketing research helps the marketing manager link the marketing variables with the environment and the consumers. It helps remove some of the uncertainty by providing relevant information about the marketing variables, environment, and consumers. In the absence of relevant information, consumers' response to marketing programs cannot be predicted reliably or accurately. Ongoing marketing research programs provide information on controllable and non-controllable factors and consumers; this information enhances the effectiveness of decisions made by marketing managers. Traditionally, marketing researchers were responsible for providing the relevant information and marketing decisions were made by the managers. However, the roles are changing and marketing researchers are becoming more involved in decision making, whereas marketing managers are becoming more involved with research. The role of marketing research in managerial decision making is explained further using the framework of the "DECIDE" model:
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D Define the marketing problem E Enumerate the controllable and uncontrollable decision factors C Collect relevant information I Identify the best alternative D Develop and implement a marketing plan E Evaluate the decision and the decision process The DECIDE model conceptualizes managerial decision making as a series of six steps. The decision process begins by precisely defining the problem or opportunity, along with the objectives and constraints. [4] Next, the possible decision factors that make up the alternative courses of action (controllable factors) and uncertainties (uncontrollable (uncontrollable factors) are enumerated. Then, relevant information on the alternatives and possible outcomes is collected. The next step is to select the best alternative based on chosen criteria or measures of success. Then a detailed plan to implement the alternative selected is developed and put into effect. Last, the outcome of the decision and the decision process itself are evaluated. This is how the marketing research helps the marketing managers.
b)
What What is the the type type of packag packaging ing you you would would adop adoptt in the the follow following ing case casess and and why: why:
(i)
Sea Food Exports
(ii)
Premium Basmati Rice
(iii) Unisex Perfume
(i)
Sea Food Exports
1. Packaging must be carried out under satisfactory conditions of hygiene, to preclude contamination of the fishery products.
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2. Packaging materials and products liable to enter into contact with fishery products must comply with all the rules of hygiene, and in particular: - they must not be such as to impair the organoleptic characteristics characteristics of the fishery products; - they must not be capable of transmitting to the fishery products substances harmful to human health; - they must be strong enough to protect the fishery products adequately. 3. With the exception of certain containers made of impervious, smooth and corrosion-resistant material which are easy to clean and disinfect, which may be re-used after cleaning and disinfecting, packaging materials may not be re-used. Packaging materials used for fresh products held under ice must provide adequate drainage for melt water. 4. Unused packaging materials must be stored in premises away from the production area and be protected from dust and contamination. Modified Atmosphere Packaging
Recent introduction in the fish retailing are vacuum packs, Modified Atmosphere Packages (MAP) and active packaging. Table 2 provides a review of the shelf-life and extensions reported for chilled fish and shellfish products in MAP, which have have been examined examined by sensory techniques. The total shelf-life shelf-li fe indicates the shelf-life shelf-li fe in MAP, while the extension of shelf-life has been calculated relatively relatively to the reference material concerned.
(ii)
Premium Basmati Rice
We export supreme quality basmati rice that has an exceptional aroma and taste which transforms even regular meal into a feast. Our basmati rice is exported to major overseas markets and is known for their quality and delicious taste. Our team of quality analysts ensures that the range offered meets the necessary food and health safety standards and provides complete nutritional value to our clients.
Packing
Packing size is 2-5kgs. – material is Food Grade Plastic Plastic bag, option: vacuum bag. Packing size is 5-50kgs. – material material is Single Single Polypropylene Polypropylene (PP). Option: PE bag, bag, Quality Guarantee Coin.
Quality Guarantee Bag,
Rice is sold either in a truck load (140 sacks of 100kg each per truck) or in packs of 1, 5, and 15 kgs. Polyethylene bags are usually used for packing rice, on which the brand could be sealed. Pricing depends on the rice quality, which ranges from low to high.
(iii) Unisex Perfume
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A simple combination of silver, crystal and pearls comes to mind when one looks at the bottle of the perfume. It looks like a great white wine but at the same time one knows that it is definitely a perfume. The packaging is elegant and appropriate. They have done justice to their perfume.
3 a) Discuss Discuss the main main object objective ivess of Sales Sales Promot Promotion. ion. Identi Identify fy some some sales sales promot promotion ionss methods methods direct directed ed at consumers, which can be used by a soap manufacturer Sales Promotion
Sales promotion plays a vital role in inducing the consumer to buy your product. Sales promotion work includes all those activities, which are directed towards promoting sales. In short, short, sales promotion promotion is any activity, activity, which improves improves the effectivene effectiveness ss of personal personal selling and advertisi advertising. ng.
Sales promotion devices can include premiums, coupons, contest, temporary price reduction, free goods, letters to trade, trade, literatu literature, re, educationa educationall material material,, displays displays and trade shows. Sales promotion promotion takes takes into consideration consideration the communication gaps that always exist between the producer and the consumer. Sales promotion should therefore be closely coordinated with advertising the personal selling.
Objectives:
T he
sales
promotion
program
are
made
to
accomplish
the
following
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To introduce a new product.
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To increase the inventories of middlemen and consumers.
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To increase a products rate among existing consumers.
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To attract new customers.
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To counter a competitor's sales promotion and other activities.
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To reduce a seasonal decline in sales.
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To make it easier for salesmen to secure more orders and arrange displays in retail stores.
objectives:
As a powerful method of sales promotion with a capability to complement and supplement the advertising function of marketing, sales promotion help marketers realise a variety of objectives. These objectives could relate to the promotion of sales in general, or to a specific activity at a particular level i.e. consumer, dealer or sales force. Some of the-commonly attempted objectives are to: Increase sales (in general, and focusing on new uses, increased usage, upgrading unit of purchase, winning sales of fading brands etc.) Make the sale of slow-moving products faster stabilise a fluctuating sales pattern Identify and attract new customers to launch a new product quickly Educate customers regarding product improvements Reduce the perception of risk associated with the purchase of a product Motivate dealers to stock and sell more (including complete product line) Attract dealers to participate in manufacturer's dealer display and sales contests Obtain more and better shelf space and displays Bring more customers to dealer stores •
• • • • • • • • •
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Make goods more faster through dealers Improve manufacturer-dealer relationship Motivate sales force to take the achievement higher than targets Attract sales force to give desired emphasis on new accounts, latent accounts, new products, and difficult territories Reward sales force for active market surveillance and for rendering superior customer service Put power into the sales-presentation sales-presentation Counter competitors sales-promotion and, marketing efforts Provide punch to the company's advertising efforts Build goodwill. Companies may use anyone or a combination of the above objectives in varying form to suit the productmarket needs of their product. What is of significance is that the sales promotion objectives set to be accomplished must be integrated with the promotion and marketing objectives pursued by the company. • • • •
• • • • •
Some sales promotions methods directed at consumers PROMOTIONS
Consumer sales promotions are steered toward the ultimate product users—typically individuals—especially individuals—especially shoppers in the local supermarket. Some of the same general techniques may be used to promote business-to business sales, although they tend to be implemented in different ways given the contrasts between the consumer and the corporate markets. In addition, trade sales promotions target resellers—wholesalers and retailers—who carry the marketer's product. Following are some of the key techniques in the storehouse of varied consumer-oriented sales promotions. PRICE DEALS
A consumer price deal saves the buyer money when a product is purchased. The price deal hopes to encourage trial use of a new product or line extension, to recruit new buyers for a mature product, or to reinforce existing customers' continuing their purchasing, increasing their purchases, accelerating their use, or purchasing of multiple units of an existing brand. Price deals work most effectively when price is the consumer's foremost criterion or when brand loyalty is low. Four main types of consumer price deals are used: price discounts, price pack deals, refunds or rebates , and coupons .
PRICE DISCOUNTS.
Buyers learn about price discounts and cents-off deals either at the point of sale or through advertising. At the point of sale, price reductions may be posted on the package or signs near the product or in storefront windows. Ads that notify consumers of upcoming discounts includes fliers, newspaper and television ads, and other media. Price discounts are especially common in the food industry, where local supermarkets run weekly specials.
PRICE PACK DEALS.
A price pack deal may be either a bonus pack or a banded pack. When a bonus pack is offered, an extra amount of the product is free when the product is bought at the regular price. This technique is routinely used for cleaning products, food, and health and beauty aids to introduce a new or larger size. A bonus pack rewards present users but may have little appeal to users of competitive brands. It is also a way to "load" customers up with the product.
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COUPONS.
Coupons are legal certificates offered by manufacturers and retailers. They grant specified savings on selected products when presented for redemption at the point of purchase. Manufacturers sustain the cost of advertising and distributing their coupons, redeeming their face values, and paying retailers a handling fee. Retailers who offer double or triple the amount of the coupon shoulder the extra cost. Retailers who offer their own coupons incur the total cost, including paying the face value. Retail coupons are equivalent to a cents-off deal. In 1859, Grape-Nuts cereal created this promotional technique by offering a $.01 coupon.
SPECIAL EVENTS
By some estimates companies around the world spent over $15 billion a year as of 1997 to link their products and corporate identities with everything from jazz festivals to golf tournaments to stock car races. In fact, a number of large corporations have special divisions or departments that handle nothing but special events sponsorships. One of the world's largest agencies, Saatchi & Saatchi DFS Compton, has a group called HMG Sports that manages sports events, including the Olympics, a ski tour for Sanka and Post Cereals, bass-fishing contest for Hardee's, and a worldwide yachtracing event for Beefeater's Gin.
SAMPLING
A sign of a successful marketer is getting the product into the hands of the consumer. Sometimes, particularly particularly when a product is new or is not a market leader, an effective strategy involves giving a sample product to the consumer either free or for a small fee. The first rule is to use sampling only when a product can virtually sell itself. Thus, the product must have benefits or features obvious to the consumer. Also, the consumer must be given enough of the product to enable an accurate judging of its value. Trial sizes of a product dictate how much will be received.
TRADE PROMOTIONS
A trade sales promotion is pointed toward resellers who distribute products to ultimate consumers. The term "trade" traditionally refers to wholesalers and retailers who handle or distribute marketers' marketers' products. Other terms for wholesalers and retailers include "resellers" and "dealers." Like these some of the sales promotional methods can be used to attract the customers. b)
What is a brand? What distinct advantages do companies get from branding? Illustrate.
The definition of brand: A brand is an identifiable entity that makes specific promises of value.
In its simplest form, a brand is nothing more and nothing less than the promises of value you or your product make. These promises can be implied or explicitly stated, but none-the-less, value of some type is promised. Additional definitions
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Brand image is defined as consumers' perceptions as reflected by the associations they hold in their minds when they think of your brand. Brand awareness is when people recognize your brand as yours. This does not necessarily mean they prefer your brand (brand preference), attach a high value to, or associate any superior attributes to your brand, it just means they recognize your brand and can identify it under different conditions.
Brand awareness consists of both brand recognition, which is the ability of consumers to confirm that they have previously been exposed to your brand, and brand recall, which reflects the ability of consumers to name your brand when given the product category, category need, or some other similar cue. familiarity with your Aided awareness occurs when you show or read a list of brands and the person expresses familiarity brand only after they hear or see it. Top-of-mind awareness occurs when you ask a person to name brands within a product category and your brand pops up first on the list.
When you think about facial tissue, gelatin, and adhesive bandages, do the brands Kleenex®, Jello®, and Band-Aid® come to mind? These brands enjoy strong top-of-mind awareness in their respective categories. The benefits of a strong brand
Here are just a few benefits you will enjoy when you create a strong brand: • •
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•
•
•
•
• •
A strong brand influences the buying decision and shapes the ownership experience. Branding creates trust and an emotional attachment to your product or company. This attachment then causes your market to make decisions based, at least in part, upon emotion-- not necessarily just for logical or intellectual reasons. A strong brand can command a premium price and maximize the number of units that can be sold at that premium. Branding helps make purchasing decisions easier. In this way, branding delivers a very important benefit. In a commodity market where features and benefits are virtually indistinguishable, a strong brand will help your customers trust you and create a set of expectations about your products without even knowing the specifics of product features. Branding will help you "fence off" your customers from the competition and protect your market share while building mind share. Once you have mind share, you customers will automatically automatically think of you first when they think of your product category. A strong brand can make actual product features virtually insignificant. A solid branding strategy communicates a strong, consistent message about the value of your company. A strong brand helps you sell value and the intangibles that surround your products. A strong brand signals that you want to build customer loyalty, not just sell product. A strong branding campaign will also signal that you are serious about marketing and that you intend to be around for a while. A brand impresses your firm's identity upon potential customers, not necessarily to capture an immediate sale but rather to build a lasting impression of you and your products. Branding builds name recognition for your company or product. A brand will help you articulate your company's values and explain why you are competing in your market.
Business Use of Brands
Different strategies are adopted by businesses to exploit the advantages provided by brands. The brand might be associated with the company (IBM) or with individual products (Seven-Up). A brand can be promoted by working on specific attitudes, as Nike did with sports excellence. Multiple brands of the same product can be offered by the same company, often competing with each other. S uch multiple brands might succeed in increasing the overall market share of the company.
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Strong retailers might get private label products branded in their own name from manufacturers, and these private labels might compete against the manufacturer's own brands in shop shelves. And key component suppliers like Intel, with their Intel Inside slogan, might be able get their brand displayed by different manufacturers. Lately, even No Brand has itself become a branding strategy. Good quality products with no branding is displayed on shop shelves, and the lower prices of these (made possible by avoiding the expenses of branding effort) can generate high sales volumes. Non-branding can also cater to the anti-brand movement. Branding is a key strategy for gaining and keeping a competitive advantage. Many famous brands are able to command surprisingly great customer loyalty and premium prices. Companies that own successful brands can also command valuations that far exceed the value of their assets. Brand building involves creating expectations of superior value in the minds of customers and then aligning customer experiences with these expectations.
4 a) Why does the marketing mix change as the product moves moves through its life cycle? How would you expect the mix to change for a novel home vacuum cleaning kit moves through the product life cycle? Marketing Mix
The marketing mix principles (also known as the 4 p’s.) are used by business as tools to assist them in pursuing their objectives. The marketing mix principles are controllable variables, which have to be carefully managed and must meet the needs of the defined target group. The marketing mix is apart of the organisations planning process and consists of analysing the defined: • • • •
How will you design, package and add value to the product. Product strategies. What pricing strategy is appropiate to use Price strategies. Where will the firm locate? Place strategies. How will the firm promote its product produc t Promotion strategies.
Four Product Life Cycle Stages: Entry or Introduction Stage: o Launch new product. Develop the market for the product. o o Build brand awareness. Advertise. o Trademark or patent the new product if necessary. o Consider your pricing your pricing strategy: should it be a low price to quickly gain market share; or a high price if limited competition and high cost to bring to market: Target Marketing distribution, place or location based on your market research – target the easiest o market to enter first; you want to have early and fast wins. Promotional materials are developed to inform and gain awareness, understanding and acceptance of o the product. Focus on an audience that likes to be an early adopter. Growth Stage: Focus on growing market share. o
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o o o
o
o
Increase brand preference: focus on product features, advantages and benefits. Product quality must be good. Awareness of quality focus must be a communication message. As product demand grows, stabilize pricing and ensure that the cost/price relationship is valid AND also supported by the market. At this stage (for new products specifically) you will have an advantage over your competition and price will not be as sensitive as in later stages. Enter additional markets. Your product, and its brand, will be gaining recognition and will receive easier acceptance. Demand will increase. Promotional materials are focused on the broader, more expanded market (and audience).
Mature Stage:
Small business sales growth starts to slow down. Focus on holding on to market share and making as much profit as possible. o Competitors have caught up to you and your product. Define and refine what’s unique about your product: unique value proposition and strong product o differentiation and product positioning (or re-positioning). If possible, and/or necessary, add new, different and unique features and benefits to your product. Pricing may be impacted by competitive activity. Develop alternative competitive strategy to cutting o price for as long as possible. Distance to market may begin to cost in time and money. Look for alternatives: open a branch closer o to the big markets, or the smaller less competitive markets; can the product be sold online – expand your market reach. o Promotional materials are focused on the unique value proposition, new features and benefits and other product differentiation. differentiation. Declining Stage: o Your product has become a commodity. Typically at this stage, competition is fierce and you can only continue to win if you are the lowest cost provider. o Consider carefully if you wish to continue with this product if cannot compete effectively. Look at ways to reduce product costs. o o Look at ways to improve or change the product. Understand your customers and your competition very well during this stage: Develop your marketing o research plan. Is market demand dying? Do your competitive your competitive intelligence and analyze your competition in business. Can your competitors be more efficient at producing the product than you? Don’t hang on to the product for emotional reasons but also don’t let go of the product too soon. o
Based on the above mentioned details the marketing mix has to be followed according to the conditions of the \product life cycle cycle only. Because if they do not follow that then then the business firm has to face face the failure. Thus it has to be changed according to the product life cycle only.
4. b) What is cyber marketing? What are the prospects and problems faced by the buyer in using this method? Discuss the limitations of cyber marketing? Cyber marketing:
Cyber marketing has now become an indispensable segment of e-commerce as well as the internet and World Wide Web related topics. Cyber marketing simply refers to a technique of attracting potential customers by advertising your products or services through such means as websites, emails, and banners. \ In other words, cyber marketing is a blend of internet technology and direct marketing principles that is adopted by business owners to find profitable customers and to interact with them in order to enhance their business activities, thereby ensuring improved ROI (Return on Investment.) A number of activities are involved in cyber marketing such as online marketing, fax direct marketing, canvassing, call center direct marketing, and mobile phone marketing via SMS (Short Message Service.) Benefits derived from the adoption of cyber marketing techniques are immense. First of all, it enables to minimize business costs and helps you to reach a substantial number of customers and that too within minimal time
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frame. Another great benefit of cyber marketing is that it allows you to cost-effectively cost-effectively reach in any type market, let it be regional, national, and international. Also, a significant benefit of cyber marketing is that it enables you to win profitable customers. Exceptionally low marketing costs, high profit margin, increased customer loyalty, round the clock services, and expansion in customer base are the other obvious benefits of cyber marketing. However, it is not as easy you think to enhance your business profitability via cyber marketing techniques. In other words, in order to employ this marketing technique, it is important that business owners and other people engaged in the internet field such as ecommerce and marketing professionals must possess adequate skills. Cyber marketing includes
- E-Business technology - E-Business Communication - E-Business Distribution Systems - E-Business Value Strategies - E-Business Strategy - E-Business Management - Individual as well as the diffusion of innovations - How to gather and use information - The Political, Legal, and Ethical Environment Knowledge of cyber marketing helps such areas as:
- Strategies as well as tactics involved in online marketing - Role of E-business in restructuring the traditional distribution systems - Way of designing advertising campaign and advertising banner - How to employ email marketing, blog advertising, viral marketing, and Google advertising - What is search engine optimization (SEO) and how to increase web visitor count through SEO? - How to develop contents that should be included in a website - Web analysis - Aspects covering ethical, legal, and political sides of cyber marketing - Cyber marketing tools WHICH HELPS TO UNDERSTAND - How to gain the attention of audience through an effective website - How to use gathered information to discover new knowledge - How to enhance the value of your business using management systems systems - How to organize E-Business strategies to compete with your rivals - How to employ different data to gain competitive benefits Limitations of Cyber Marketing: Limitations of cyber marketing include the requirement that consumers have access to the technology required to access the advertising in the first place. While many consumers have televisions, and therefore are able to access advertising and marketing in that form, they may not have internet access. Fortunately, internet access is becoming more widespread, and the younger generation is very likely to have some sort of access to the internet. The consumer is also not able to physically interact with the product before purchasing it. The major barriers to entry for marketing a product online are the low measurement of impact, the poor internal capability, and the difficulty in convincing senior management to move forward with it.
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