Marketing Promotion Methods #3: Contests
One of the effective, popular and most preferred form of promotional methods is to arrange certain contests for the customers. We all will agree to the fact that winning surprise prizes in a shopping mall or fashion store is simply exciting. One of the most attractive marketing strategies, organizing contests among the customers is a brilliant way to promote the products. Read more on marketing tips.
Marketing Promotion Methods #4: Pamphlets/Coupons
In the quest to attract more customers, companies distribute coupons and pamphlets about the products. The customers are either given basic information about the newly launched products or they are provided with discounted coupons on the purchase of some accessories/apparels. Coupons make for an effective marketing plan for small business units. Read more develop a marketing plan.
Marketing Promotion Methods #5: Free Samples
The idea of freely distributing products, sounds weird and crazy for any company, however, there is a certain element of truth in the fact that marketing firms have gained substantial promotion through the idea of free samples. While, it is not logical to just distribute your products, you can devise a strategy, so that, the idea of free samples doesn't incur losses for your firm.
Marketing Mix Strategy
A marketing mix strategy is a strategy that has been formulated after taking into consideration the 4 P's of marketing: product, price, place and promotion. Read on to know more about marketing mix strategies.
Marketing Mix Strategy
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Launching a product in the market and winning consumers in the initial period is not enough. Sustaining market share even when competitors are on the rise is crucial for long term profit. We all know consumers have short concentration spans. It doesn't take long for a competitor to come and dangle a similar product, thereby snatching away one's consumers. Thus, a company has no time to be complacent. In this world of 'survival of the fittest', one cannot afford to be happy with today's sales rates and relax. Instead one needs to analyze the product life cycle and the marketing mix strategy and come up with ways to keep consumers lured.
Marketing Mix Strategies
Marketing mix is a term used to identify the crucial ingredients in a business, which will conduce to long term profits. To understand what a marketing mix and mix market is, let us look at an analogy. Consider watercolor painting! An artist uses three primary colors (red, blue and yellow) to derive required shades on the canvas. If he wants green, he simply mixes some blue and yellow together. If he wants dark green, he simply increases the amount of blue and vice versa. Moreover, he blends different shades of paints on the canvas to get a mesmerizing final painting. Read more on marketing strategies.
Similarly, a marketing mix is the combination of factors such as the type of product, its price, place of distribution and promotional strategies used. These four factors are popularly called 4P's of marketing and were first introduced to the world in 1960 by McCarthy. Let's delve into each of them and see how they affect the life of a product.
Product
A 'Product' is anything that satisfies a customer's need. The product may be a tangible commodity like cars, accessories, gadgets, etc. or may be an intangible service like health care service, hotel service, etc. The product is the first P of the marketing mix and is by default the most important aspect of the marketing mix. This is because the product is the bait of the company, without which it cannot get the fish. A bad, stinky bait will not lead to hooking soda cans. So this explains how crucial a good, innovative and impressive the product has to be. A useless, unimpressive product can never succeed no matter how good the other three P's of the marketing mix are. Thus, companies need to conduct thorough market research, to check if consumers need this product and then need to come up with a product that has a cutting edge above other products sold by competitors.
Price
Second place in the marketing mix goes to 'Price'. According to the management stalwarts; Philip Kotler and Gary Armstrong, the concept of price refers to the amount of money a consumer has to pay to attain a product. Price determination is not child's play. It is a popular belief that low prices lure large number of customers, thereby resulting in high sales ratios. However, this is not true. Price alone will not attract consumers. Before arriving at a price, the company needs to consider the prices of similar products sold in the market. Moreover, depending on the features provided by the product they will have to raise or lower the price. It doesn't end here! Price administration is also required, wherein the company needs to consider factors like geographic location, times for special sales, distributors, etc. to determine the price at special situations. For example a product in the United States may vary in price from the one sold in India. Depending on the demand for a product at a particular place, price determination can vary.
Place
The third P in the marketing mix stands for 'Place'. This refers to the methods of distributing finished products from the manufacturing unit to the final consumer. This would involve transportation and storage of goods, till they are availed by the customer. It's all about 'providing the right product to the right place at the right time' with the help of an efficient distribution system. The type of distribution channel chosen by manufacturers will depend on whether they find it convenient to sell it to wholesalers or directly to retailers or consumers via specific dealers. The company will focus on making products available to the consumer as fast as they can.
Promotion
The fourth P in the marketing mix stands for 'Promotion', which refers to a company's communication line with the end consumer. Just like how having talent is useless till one actually uses it and lets the world see it, same is the case with a product. No matter how good the product is, if it remains in the factory, it will never rope in profits. It needs to be publicized among people who need it, who will buy it and come back to make more purchases.
Various marketing promotion methods can be used to advertise the product and generate awareness. Promotional costs are usually very high in the introduction stage of the product life cycle, however, as the product gains market share, the promotional costs reduce. Later when the product sale begins to decline, it again undergoes vigorous advertising using various marketing tools.
Successful Marketing Strategies
Marketing is a continuous process that a seller undertakes from the minute he identifies customer needs. Product designing, promotion, and after sales service finally complete the most successful marketing strategies. This article will help provide some insight into the subject.
Successful Marketing Strategies
For any business to flourish and ultimately be profitable, successful marketing strategies need to be employed. Every company or business organization undertakes a variety of marketing activities in order to meet their primary organizational goal, that of making profits. Marketing is a process that begins right from the inception of the product design, right till the time the consumer actually buys the product. As a matter of fact, the most successful marketing strategies do not end when the consumer purchases the product, as after sales service and customer relationship marketing are also other forms of good marketing.
What is Marketing
Philip Kotler, the father of modern marketing management, defines marketing as "Satisfying needs and wants through an exchange process". Another definition of marketing is "The management process responsible for identifying, anticipating and satisfying customer requirements profitably".
It is clear from these definitions that marketing needs to be aimed at somebody. It cannot be generic in nature, it needs to have a purpose. When the maker of a luxury car develops his marketing strategy he knows what the age bracket and income bracket his customers are going to fall in. So he alters his marketing strategy to suit the needs and expectations of this target segment of customers. Successful marketing strategies revolve around one person, the customer, and go to any lengths to firstly identify what the needs of the customer are, and subsequently satisfying those needs.
Successful marketing strategies today have become very customer centric, and this is very different from olden days. The reason for this is the vast amount of choices and options that the customer has today, coupled with the large amount of disposable income in their hands. This has increased the competitiveness between sellers vastly, and the only way they can entice customers is through effective marketing.
The Marketing Process
Marketing is a process that begins from the very day a product is conceptualized. The features, attributes and benefits of the product have to suit the needs and wants of the customer perfectly, and this has to be kept in mind by the marketer. This is why the biggest companies spend so much money on research and development and constant innovation of their products. The key elements of a successful marketing strategy are innovation and competitive advantage. Companies that constantly strive to be better than their competitors by consistently offering new and innovative products are the ones that enjoy the majority of the market share in their particular industry. Read more about marketing tools and marketing tips.
Once the product has been developed and manufactured, the customers need to be made aware of the availability of the product. This is done through large scale advertising and direct selling. Utilizing various mediums like the Internet, TV, radio, newspapers, magazines, journals, billboards, etc. grants the seller the platform to reach out to a mass of people at the same time. Highlighting the product's utility and novelty is the key element of the most successful marketing strategies. Providing the customers with various kinds of discounts, subsidies and free merchandise is also a great marketing strategy. Read on to learn how to develop a marketing plan.
Once the product has been sold, the marketer's job is seemingly over, as his task was to ensure that the customer purchases his product. This is as far from the truth as possible. The name of the game is retention of customers, as rivals are always looking to steal away customers from any business. By focusing on customer satisfaction, a company is retaining its power over the customer and this can be achieved only by good after sales service, prompt complaint solutions, informing about future offers and products and overall customer relationship management (CRM). Before venturing out to get more customers, it is important to build a solid base to retain and satisfy the existing customers.
The Four P's
The concept of the 4 P's of marketing, or the marketing mix, is a timeless technique of categorizing the various marketing strategies. By keeping these 4 P's in mind any marketer can adopt and reap the benefits of successful marketing strategies. Failure to adhere to these can result in disaster and failure for the organization.
* Product: The most important thing of marketing strategies is the product. It has to be useful, and innovative. There has to be a need for this specific type of product in the minds of the customer. Product engineering focuses on making the best possible products in order to satisfy the customer.
* Price: The next most important thing is the price of the product. If a product is over priced, customers will search and opt for cheaper alternatives. The quality of the product should be worth the price and vice versa.
* Place: This refers to the channels of distribution of the product, and developing channel partners and reliable suppliers so as to make the product reach the customer as quickly and as easily as possible.
* Promotion: Lastly comes the promotional activities that are undertaken by the seller. Making their presence felt in the market and using various means to do this is a key element of the most successful marketing strategies.
Read more about the different types of marketing.
* Direct Mail Marketing
* Email Marketing
* Internet Marketing
* Relationship Marketing
* Viral Marketing
At the end of the day, every business is unique and has their own pros and cons. You need to plan and develop your marketing strategy based on the size of your business, the economics, the number of competitors, the demographics of customers and the area of operation. Successful marketing strategies evolve over time as customer tastes and preferences change, and as a result this is a field of study that is more artistic in nature than scientific. The principles of marketing remain the same, but the subtleties and nuances constantly change. The most important thing to remember though, is that marketing never ends. Striving for perfection is the ultimate goal, and once this process is successfully set into place profits start rolling in, and company goals and objectives start getting realized.
Market Segmentation Strategy
A well defined market segmentation strategy will enable better products and services for the customer and win you a reputation of being the 'customer's marketeer'.
Market Segmentation Strategy
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Market segmentation strategy involves dividing the market into groups, where individuals have similar needs and wants for services and products. It could also be a segmentation of people on the basis of behavior, culture and economic status. To get a clearer picture of what is market segmentation, one can always look into the definition provided by business dictionary.com, market segmentation is defined as, "Process of defining and sub-dividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics".
Why Segment your Market?
Before one market's products or services, one needs to understand their customers, and find ways and means to satisfy their wants. This is imperative to stay ahead of the competition and build the brand. This is done through extensive market research. Although it is not possible to satisfy individual needs and even to understand all of them, a clearly defined market segmentation strategy will help create a market to cater to groups of individuals that will make economic sense to mass produce and distribute. The concept of target market segmentation strategy also falls under the blanket of market segmentation, except the former recognizes and understands the diversity of customers and provides them with products and services that suit their specific requirements. A successful market strategy strives to understand different segments and its different needs; works on the exhibited common wants; and responds immediately.