concepts of marketing....

vikram chawla

Vikram Chawla
Umbrella branding refers to branding of products, services or ideas under the mother brand name. Mostly when the mother brand is very successful then the company extends this name to other new product lines and may be to the entire product mix.

Eg. Reliance had named many of its products upon its mother brand name of Reliance. Reliance energy, reliance poly-fibers, Reliance telecom etc..
 
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vikram chawla

Vikram Chawla
What is demarketing?

It is a process done to reduce the demand of a particular product that is available in scarce.ex:water

It can also be done for the welfare of the public.ex:alcohol, cigarette
 

vikram chawla

Vikram Chawla
What is Viral Marketing

Viral marketing is often referred to as word of mouth publicity..
It is a kind of marketing in which people pass on the marketing message to other people...
 

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WORD OF MOUTH PUBLICITY:

Word of mouth is a reference to the passing of information from person to person. Originally the term referred specifically to oral communication (literally words from the mouth), but now includes any type of human communication, such as face to face, telephone, email, and text messaging.
 

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INFLUENCER MARKETING:

Influencer marketing is a form of marketing that has emerged from a variety of recent practices and studies, in which focus is placed on specific key individuals (or types of individual) rather than the target market as a whole. It identifies the individuals that have influence over potential buyers, and orients marketing activities around these influencers.

Influencers may be potential buyers themselves, or they may be third parties. These third parties exist either in the supply chain (retailers, manufacturers, etc) or may be so-called value-added influencers (such as journalists, academics, industry analysts, professional advisers, and so on)
 

vikram chawla

Vikram Chawla
DIFFERENCE BETWEEN SALES AND MARKETING?

Marketing is wen u first understand the need of market &then the product is produced/designed,packed etc...

Where in sales the product is already produced and you have to sell it.

Sales is the part of marketing.
 

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Affiliate Marketing

Affiliate marketing is basically business sharing between online merchants and online salespeople. The money compensation is based on the form of sales, website hits, and website registrations. The online merchants are commonly referred to as affiliate merchants, and the salespeople are simply referred to as affiliates. The following paragraphs will discuss some of the benefits of affiliate marketing.

One of the benefits of affiliate marketing is that affiliate marketing has added to the rise of many online companies, including Amazon.com. It has become extremely common for industries to participate or offer affiliate marketing deals that are often built in a similar way as the industry offering them, making similar competitive changes when necessary.

Source: Dimacc.com
 

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Target Marketing

Target marketing is commonly used to identify a targeted group of consumers who would be most likely to purchase and use specific products or services. Target marketing is essential in order to reach your business goals and objectives. Imagine trying to hit a target you cannot see. The same can be said for starting a business without first target marketing.

Most businesses have the same basic objective, to make a profit and raise their product brand awareness. Target marketing will not only enable you to sell a more effective product or service, it will also allow you to do so while being more cost-efficient. Knowing what your targeted consumer group expects from your product and service will enable you to meet their demands, and spend less money on promotion. Target marketing will give you the opportunity to make your product or service a smash hit the first time around.

There are many target marketing methods you can use to compile data including hiring a professional target marketing firm. A professional firm can be costly, so many businesses compile the data on their own at a fraction of the cost. Surveys are the most popular method of collecting data to choose a targeted consumer group for their product or service. When using surveys to collect data for target marketing, in order to be effective, the questions on your surveys must be worded in order to obtain information including:

• geographical information
• demographic information
• behavioral information

There are many methods of target marketing. Starting a business without first targeting a consumer group to research their product expectations can be compared to throwing a ball while wearing a blindfold. Obtaining information and compiling data will help you to increase profits and give you a better idea of what the consumer expects from your product or service.

Source: dimacc.com
 

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Multilevel Marketing


In order to understand multilevel marketing and its benefits, you must first understand what multilevel marketing is. The following paragraphs will explain multilevel marketing and the advantages and disadvantages associated with it.

To help understand what multilevel marketing is, you must first understand what it isn't. Multilevel marketing is not a pyramid scheme. A pyramid scheme is where you invest money based on the promise of fast profit. Normally there is no product or service involved in pyramid schemes, just money, and there is no profit ever made by the investor. Pyramid schemes are illegal, and based solely on taking advantage of people for profit.

Multilevel marketing, on the other hand, is a legit business. Multilevel marketing is based on selling a real product or service to real people. While there are some people who make a substantial amount of money through multilevel marketing, their earnings are always a result of their hard work and dedication to selling the product or service.

It can take some time before you start seeing a profit with multilevel marketing, but there are many advantages. These advantages include:

setting your own hours
• working from home
• income potential

With multilevel marketing, you can set your own hours. That can be a benefit for many reasons. Perhaps you attend school, or maybe you need to be home at undetermined times of the day. Multilevel marketing may work for you.

Working from home is also a great advantage that comes with multilevel marketing. By working from home, you are saving the expense of gasoline, parking, wear and tear on your vehicle, parking, and other expenses you would incur going to the office to work. Working from home is also ideal for students, home makers, retirees, and anyone who needs to be at home throughout the day.

Lastly, another advantage to multilevel marketing is the income potential. The income potential is great, as long as you have the desire and will power to earn.

Source: dimacc.com
 

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Business Marketing

One of the most important factors in good business marketing is to completely understand the potential customer's needs and to have a plan developed to ensure that you meet those needs. The most effective way to succeed and expand in your business is to develop a good business marketing plan. A good business marketing plan will aid in:

• gathering regular customers and clients
• encouraging an increase in sales

When you spend quality time researching and creating a good business marketing plan, you are bound to increase the amount of regular customers or clients you will have. A good marketing plan will enable you to guide your product or service development, to reach a broader range of potential consumers. When your product information reaches a broader range of potential consumers, you are bound to build a larger amount of regular customers and clients. Often adding promotional items into your business plan will also help with continuing business.

Another benefit of having a well thought out business marketing plan is it will likely increase the sales of your products or services. If you price your products or services competitively, you are bound to increase your sales numbers. Basing your prices and product standards on good business marketing research data can be very effective in raising your regular sales numbers.

A good business marketing plan, and obtaining business marketing research data can be the key to getting your new business off on the right foot. The benefits of a good business marketing plan are many, but include aiding in building regular clientele and increasing sales numbers. These are not the only benefits of business marketing; they are mere examples of the many choices of marketing plans. Do your research, and develop a good business marketing plan to ensure the best start for your new business.


Source: dimacc.com
 

vikram chawla

Vikram Chawla
Shelf Space in marketing means occupying the prime position for display of products in retail outlets. This is mostly practiced by FMCG companies where there is a huge clutter and companies are fighting to get the attention of their consumers to be on top of their mind. With low involvement products, consumers might pick up those items which they could see infront of their eyes.
 

vikram chawla

Vikram Chawla
Customer and Consumer

Customer - to whom you make your first sale. In short he is the one to buy the product, whether he uses it or not is immaterial.

Consumer - He is the one who uses your product, but doesnt mean that he has bought it.
 

vikram chawla

Vikram Chawla
Market skimming is d pproach under which a producer sets a high price for a new high-end product (such as an expensive perfume) or a uniquely differentiated technical product (such as one-of-a-kind software or a very advanced computer). Its objective is to 'skim' maximum revenue from the market before substitutes products appear. After that is accomplished, the producer can lower the price ......
 

vikram chawla

Vikram Chawla
The terms "below the line" promotion or communications, refers to forms of non-media communication, even non-media advertising. Below the line promotions are becoming increasingly important within the communications mix of many companies, not only those involved in fmcg products, but also for industrial goods.
 

vikram chawla

Vikram Chawla
Transfer pricing

It refers to the pricing of contributions (assets, tangible and intangible, services, and funds) transferred within an organization. For example, goods from the production division may be sold to the marketing division, or goods from a parent company may be sold to a foreign subsidiary. Since the prices are set within an organization (i.e. controlled), the typical market mechanisms that establish prices for such transactions between third parties may not apply. The choice of the transfer price will affect the allocation of the total profit among the parts of the company. This is a major concern for fiscal authorities who worry that multi-national entities may set transfer prices on cross-border transactions to reduce taxable profits in their jurisdiction. This has led to the rise of transfer pricing regulations and enforcement, making transfer pricing a major tax compliance issue for multi-national companies.
 

vikram chawla

Vikram Chawla
Abrasive Advertising are Annoying and unpleasant advertisements which can be very effective. Research shows that the abrasiveness of a commercial that uses this type of appeal will wear out over time and the brand name will remain in consumers’ memories. Although they can be questioned on ethical grounds.
 

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The Product Life Cycle:​

A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.

The product revenue and profits can be plotted as a function of the life-cycle stages.

Introduction Stage

In the introduction stage, the firm seeks to build product awareness and develop a market for the product. The impact on the marketing mix is as follows:

Product branding and quality level is established, and intellectual property protection such as patents and trademarks are obtained.

Pricing may be low penetration pricing to build market share rapidly, or high skim pricing to recover development costs.

Distribution is selective until consumers show acceptance of the product.

Promotion is aimed at innovators and early adopters. Marketing communications seeks to build product awareness and to educate potential consumers about the product.

Growth Stage


In the growth stage, the firm seeks to build brand preference and increase market share.

Product quality is maintained and additional features and support services may be added.

Pricing is maintained as the firm enjoys increasing demand with little competition.

Distribution channels are added as demand increases and customers accept the product.

Promotion is aimed at a broader audience.

Maturity Stage


At maturity, the strong growth in sales diminishes. Competition may appear with similar products. The primary objective at this point is to defend market share while maximizing profit.

Product features may be enhanced to differentiate the product from that of competitors.

Pricing may be lower because of the new competition.

Distribution becomes more intensive and incentives may be offered to encourage preference over competing products.

Promotion emphasizes product differentiation.

Decline Stage

As sales decline, the firm has several options:

Maintain the product, possibly rejuvenating it by adding new features and finding new uses.

Harvest the product - reduce costs and continue to offer it, possibly to a loyal niche segment.

Discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to continue the product.

The marketing mix decisions in the decline phase will depend on the selected strategy. For example, the product may be changed if it is being rejuvenated, or left unchanged if it is being harvested or liquidated. The price may be maintained if the product is harvested, or reduced drastically if liquidated.

Source: quickmba.com
 

Kirtisoni

MP Guru
Market Segmentation​



The division of a market into different homogeneous groups of consumers is known as market segmentation.

Rather than offer the same marketing mix to vastly different customers, market segmentation makes it possible for firms to tailor the marketing mix for specific target markets, thus better satisfying customer needs. Not all elements of the marketing mix are necessarily changed from one segment to the next. For example, in some cases only the promotional campaigns would differ.

A market segment should be:
measurable
accessible by communication and distribution channels
different in its response to a marketing mix
durable (not changing too quickly)
substantial enough to be profitable

A market can be segmented by various bases, and industrial markets are segmented somewhat differently from consumer markets, as described below.

Consumer Market Segmentatio
n

A basis for segmentation is a factor that varies among groups within a market, but that is consistent within groups. One can identify four primary bases on which to segment a consumer market:

Geographic segmentation is based on regional variables such as region, climate, population density, and population growth rate.

Demographic segmentation is based on variables such as age, gender, ethnicity, education, occupation, income, and family status.

Psychographic segmentation is based on variables such as values, attitudes, and lifestyle.

Behavioral segmentation is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought.

The optimal bases on which to segment the market depend on the particular situation and are determined by marketing research, market trends, and managerial judgment.

Business Market Segmentation


While many of the consumer market segmentation bases can be applied to businesses and organizations, the different nature of business markets often leads to segmentation on the following bases:

Geographic segmentation - based on regional variables such as customer concentration, regional industrial growth rate, and international macroeconomic factors.

Customer type - based on factors such as the size of the organization, its industry, position in the value chain, etc.

Buyer behavior - based on factors such as loyalty to suppliers, usage patterns, and order size.

Profiling the Segments

The identified market segments are summarized by profiles, often given a descriptive name. From these profiles, the attractiveness of each segment can be evaluated and a target market segment selected.

Source:quickmba.com
 

Kirtisoni

MP Guru
Product Diffusion Curve​



Consumers can be grouped according to how quickly they adopt a new product. On the one extreme, some consumers adopt the product as soon as it becomes available. On the other extreme, some consumers are among the last to purchase a new product. As a whole, the new product adoption process can be modeled in the form of a bell-shaped diffusion curve similar to the following:

Defining bins one standard deviation wide about the mean, five different product adoption groups can be defined:

Innovators - well-informed risk-takers who are willing to try an unproven product. Innovators represent the first 2.5% to adopt the product.

Early adopters - based on the positive response of innovators, early adopters then begin to purchase the product. Early adopters tend to be educated opinion leaders and represent about 13.5% of consumers.

Early majority - careful consumers who tend to avoid risk, the early majority adopts the product once it has been proven by the early adopters. They rely on recommendations from others who have experience with the product. The early majority represents 34% of consumers.

Late majority - somewhat skeptical consumers who acquire a product only after it has become commonplace. The late majority represents about 34% of consumers.

Laggards
- those who avoid change and may not adopt a new product until traditional alternatives no longer are available. Laggards represent about 16% of consumers.

For this discussion, the term "consumers" represents both individuals and organizations.

The rate of adoption depends on many factors, including:
perceived benefits over alternative products
communicability of the product benefits
price and ongoing costs
ease of use
promotional effort
distribution intensity
perceived risk
compatibility with existing standards and values
divisibility (the extent to which a new product can be tested on a limited basis)

Even if a product offers high value to the customer, the firm nonetheless faces the challenge of convincing potential customers to try the product and eventually to adopt it. The product diffusion curve is partly responsible for the product life cycle, which calls for different management strategies that depend on the product's stage in the life cycle.

source: quickmba.com
 
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