Angelo Marketing Firm

Marketing is a widely used term to describe the means of communication between the company and the consumer audience. Marketing is the adaptation of the commercial activities and use of institutions by the organizations with a purpose to induce behavioral change on a short-term or permanent basis.[1] The American Marketing Association most recently defined Marketing 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."


Factors of influence on marketing strategies

In addition to the controllable marketing mix factors, there are uncontrollable factors called environmental forces. The external influences are the forces that affect the characteristics of the marketing strategies to which marketeers adapt. Amongst others they include: regulatory, economic, social, political environmental, competitive and technological.[14]

• Regulatory: This refers to laws and legality (governmental policies) that may affect the way marketing can be characterized. For example, government restriction on the importation of a particular product might hinder the marketers playing in that particular field.

• Economic. Various trends in the economic business cycle, including inflation, recessions, deficit or income level. Each of these factors can have a direct impact on marketing which may have to be re-evaluated and overhauled as a result.

• Social: The social forces refer to the structure and dynamics of individuals and groups and their behaviors, beliefs, thought patterns and lifestyles, friendships, etc. When consumers change their needs and wants, this directly affects marketing strategies.

• Political: The socio-economic conditions are closely related to the state of the governmental institutions. Depending on the governmental impact on bureaucracy, corruption, freedom of speech and other limitations (or opportunities), the marketing strategies will adapt to the political conditions.

• Competitive: Competition refers to the numbers of similar competitive product brands. A new competitor entering the market will directly affect the marketing strategies of the incumbent companies. Firms offering similar services or products often achieve differentiation through marketing, positioning and branding.

• Technology. The marketing strategies often adapt to the pace of development of the consumer demand and exponential technological progression.



Earlier approaches


Orientation Profit driver Western European timeframe Description
Production[4] Production methods until the 1950s A firm focusing on a production orientation specializes in producing as much as possible of a given product or service. Thus, this signifies a firm exploiting economies of scale until the minimum efficient scale is reached. A production orientation may be deployed when a high demand for a product or service exists, coupled with a good certainty that consumer tastes will not rapidly alter (similar to the sales orientation).
Product[4] Quality of the product until the 1960s A firm employing a product orientation is chiefly concerned with the quality of its own product. A firm would also assume that as long as its product was of a high standard, people would buy and consume the product.
Selling[4] Selling methods 1950s and 1960s A firm using a sales orientation focuses primarily on the selling/promotion of a particular product, and not determining new consumer desires as such. Consequently, this entails simply selling an already existing product, and using promotion techniques to attain the highest sales possible.

Such an orientation may suit scenarios in which a firm holds dead stock, or otherwise sells a product that is in high demand, with little likelihood of changes in consumer tastes that would diminish demand.

Marketing[4] Needs and wants of customers 1970s to the present day The 'Customer orientation' is perhaps the most common orientation used in contemporary marketing. It involves a firm essentially basing its marketing plans around the marketing concept, and thus supplying products to suit new consumer tastes. As an example, a firm would employ market research to gauge consumer desires, use R&D (research and development) to develop a product attuned to the revealed information, and then utilize promotion techniques to ensure persons know the product exists. R&D companies often parallel customer orientation with R&D phases to ensure the desired customer specifications are produced. Customization Maximization (similar to profit maximization in economics,) is the measurable approach to more efficiently sustaining specific customer needs, in effort to maximize the customization of the product or service offered to the customer, by the measure of data relating to responses, feedback, and elasticity.
Holistic Marketing[5] Everything matters in marketing 21st century The holistic marketing concept looks at marketing as a complex activity and acknowledges that everything matters in marketing - and that a broad and integrated perspective is necessary in developing, designing and implementing marketing programs and activities. The four components that characterize holistic marketing are relationship marketing, internal marketing, integrated marketing, and socially responsive marketing. Market segmentation and positioning have increased the divergence of society, further segregating and preventing a holistic population. Holistic Marketing helps converge the segments in an approach to improve the entire market through social responsibility and convergence. Holistic marketing disengages the political marketing activities of "divide and conquer", or market segmentation.




Contemporary approaches


Orientation Profit driver Western European timeframe Description
Relationship marketing / Relationship management[6] Building and keeping good customer relations 1960s to present day Emphasis is placed on the whole relationship between suppliers and customers. The aim is to provide the best possible customer service and build customer loyalty.
Business marketing / Industrial marketing Building and keeping relationships between organizations 1980s to present day In this context, marketing takes place between businesses or organizations. The product focus lies on industrial goods or capital goods rather than consumer products or end products. Different forms of marketing activities, such as promotion, advertising and communication to the customer are used.
Societal marketing[6] Benefit to society 1990s to present day Similar characteristics to marketing orientation but with the added proviso that there will be a curtailment of any harmful activities to society, in either product, production, or selling methods.
Branding Brand value 1980s to present day In this context, "branding" refers to the main company philosophy and marketing is considered to be an instrument of branding philosophy.




Customer orientation

Constructive criticism helps marketers adapt offerings to meet changing customer needs.

A firm in the market economy survives by producing goods and services that persons are willing and able to buy. Consequently, ascertaining consumer demand is vital for a firm's future viability and even existence as a going concern. Many companies today have a customer focus (or market orientation). This implies that the company focuses its activities and products on consumer demands. Generally, there are three ways of doing this: the customer-driven approach, the market change identification approach and the product innovation approach.

In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a market offering, including the nature of the product itself, is driven by the needs of potential consumers. The starting point is always the consumer. The rationale for this approach is that there is no reason to spend R&D (research and development) funds developing products that people will not buy. History attests to many products that were commercial failures in spite of being technological breakthroughs.

A formal approach to this customer-focused marketing is known as SIVA (Solution, Information, Value, Access). This system is basically the four Ps renamed and reworded to provide a customer focus. The SIVA Model provides a demand/customer-centric alternative to the well-known 4Ps supply side model (product, price, placement, promotion) of marketing management.

Product Solution
Promotion Information
Price Value
Place (Distribution) Access

Other caveats of customer focus are:

  • The extent to which what customers say they want does not match their purchasing decisions. Thus surveys of customers might claim that 70% of a restaurant's customers want healthier choices on the menu, but only 10% of them actually buy the new items once they are offered. This might be acceptable except for the extent to which those items are money-losing propositions for the business, bleeding red ink. A lesson from this type of situation is to be smarter about the true test validity of instruments like surveys. A corollary argument is that "truly understanding customers sometimes means understanding them better than they understand themselves." Thus one could argue that the principle of customer focus, or being close to the customers, is not violated here—just expanded upon.
  • The extent to which customers are currently ignorant of what one might argue they should want—which is dicey because whether it can be acted upon affordably depends on whether or how soon the customers will learn, or be convinced, otherwise. IT hardware and software capabilities and automobile features are examples. Customers who in 1997 said that they would not place any value on internet browsing capability on a mobile phone, or 6% better fuel efficiency in their vehicle, might say something different today, because the value proposition of those opportunities has changed.



Types of market research

Main article: Market research

Market research, as a sub-set aspect of marketing activities, can be divided into the following parts:

  • Primary research (also known as field research), which involves the conduction and compilation of research for a specific purpose.[24]
  • Secondary research (also referred to as desk research), initially conducted for one purpose, but often used to support another purpose or end goal.

By these definitions, an example of primary research would be market research conducted into health foods, which is used solely to ascertain the needs/wants of the target market for health foods. Secondary research in this case would be research pertaining to health foods, but used by a firm wishing to develop an unrelated product.

Primary research is often expensive to prepare, collect and interpret from data to information. Nevertheless, while secondary research is relatively inexpensive, it often can become outdated and outmoded, given that it is used for a purpose other than the one for which it was intended. Primary research can also be broken down into quantitative research and qualitative research, which, as the terms suggest, pertain to numerical and non-numerical research methods and techniques, respectively. The appropriateness of each mode of research depends on whether data can be quantified (quantitative research), or whether subjective, non-numeric or abstract concepts are required to be studied (qualitative research).

There also exist additional modes of marketing research, which are:

  • Exploratory research, pertaining to research that investigates an assumption.
  • Descriptive research, which, as the term suggests, describes "what is".
  • Predictive research, meaning research conducted to predict a future occurrence.
  • Conclusive research, for the purpose of deriving a conclusion via a research process.
  • Applied research – examines variables within a specific context of interest to a marketer
  • Basic research – aims to understand relative relationships between variables. The variables may have either causal or correlational relationship. Causal relationships is when one variable influences the other but not vice versa. Conversely, Correlational relationships is when there is a statistically testable relationship between an event and a condition.
  • Causal research – research done to identify and understand cause-and-effect relationships through experiment. Experiments are typical in causal research. (Experiments – manipulate variables in a controlled setting to determine their relationship to one another) [25]

Typical market research methods are:

1) Qualitative research methods

  • Focus groups - form of qualitative research in which a group of people are asked about their perceptions, opinions, beliefs, and attitudes.
  • In-depth interview – a method of analysis, which proceeds as a confidential and secure conversation between an interviewer and a respondent.
  • projective techniques - designed to let a person respond to ambiguous stimuli, presumably revealing hidden emotions and internal conflicts projected by the person

2) Quantitative research methods

  • Panels - a longitudinal statistical study in which one group of individuals are interviewed at intervals over a given period of time
  • Surveys - a part of longitudinal and cross-sectional studies. They collect either primary data or Secondary data. Primary data – new data collected on a project-by-project basis. Secondary data – they already exist and can be accessed within an organisation or from external sources.[25]

Types of marketing




Marketing planning



Main article: Marketing plan

The marketing planning process involves forging a plan for a firm's marketing activities. A marketing plan can also pertain to a specific product, as well as to an organization's overall marketing strategy. Generally speaking, an organization's marketing planning process is derived from its overall business strategy. Thus, when top management are devising the firm's strategic direction or mission, the intended marketing activities are incorporated into this plan. There are several levels of marketing objectives within an organization. The senior management of a firm would formulate a general business strategy for a firm. However, this general business strategy would be interpreted and implemented in different contexts throughout the firm.

Marketing strategy

Main article: Marketing strategy

The field of marketing strategy considers the total marketing environment and its impacts on a company or product or service. The emphasis is on "an in depth understanding of the market environment, particularly the competitors and customers."

A given firm may offer numerous products or services to a marketplace, spanning numerous and sometimes wholly unrelated industries. Accordingly, a plan is required in order to effectively manage such products. Evidently, a company needs to weigh up and ascertain how to utilize its finite resources. For example, a start-up car manufacturing firm would face little success should it attempt to rival Toyota, Ford, Nissan, Chevrolet, or any other large global car maker. Moreover, a product may be reaching the end of its life-cycle. Thus, the issue of divest, or a ceasing of production, may be made. Each scenario requires a unique marketing strategy. Listed below are some prominent marketing strategy models.

A marketing strategy differs from a marketing tactic in that a strategy looks at the longer term view of the products, goods, or services being marketed. A tactic refers to a shorter term view. Therefore, the mailing of a postcard or sales letter would be a tactic, but changing marketing channels of distribution, changing the pricing, or promotional elements used would be considered a strategic change.

A marketing strategy considers the resources a firm has, or is required to allocate in effort to achieve an objective. Marketing Strategies include the process and planning in which a firm may be expected to achieve their company goals, in which usually involves an effort to increase revenues or assets, through a series of milestones or benchmarks of business and promotional activities.

Positioning

The marketing activity and process of identifying a market problem or opportunity, and developing a solution based on market research, segmentation and supporting data. Positioning may refer the position a business has chosen to carry out their marketing and business objectives. Positioning relates to strategy, in the specific or tactical development phases of carrying out an objective to achieve a business' or organization's goals, such as increasing sales volume, brand recognition, or reach in advertising.

Buying behavior

A marketing firm must ascertain the nature of customers' buying behavior if it is to market its product properly. In order to entice and persuade a consumer to buy a product, marketers try to determine the behavioral process of how a given product is purchased. Buyer behavior in the digital age is assessed through analytics and predictive modelling. The analysis of buyer behavior through online platforms includes Google Analytics and vendor side software such as Experian. The psychology of marketing is determined through the analysis of customer perception pertaining to brands. Marketing theory holds that brand attributes is primarily a matter of customer perception rather than product or service features.

Buying behavior is usually split into two prime strands, whether selling to the consumer, known as business-to-consumer (B2C), or to another business, known as business-to-business (B2B).

B2C buying behavior

This mode of behavior concerns consumers and their purchase of a given product. For example, if one imagines a pair of sneakers, the desire for a pair of sneakers would be followed by an information search on available types/brands. This may include perusing media outlets, but most commonly consists of information gathered from family and friends. If the information search is insufficient, the consumer may search for alternative means to satisfy the need/want. In this case, this may mean buying leather shoes, sandals, etc. The purchase decision is then made, in which the consumer actually buys the product. Following this stage, a post-purchase evaluation is often conducted, comprising and an appraisal of the value/utility brought by the purchase of the sneakers. If the value/utility is high, then a repeat purchase may be made.

B2B buying behavior

This mode of behavior involves one business marketing a product or service to another business. An example would be a business buying either wholesale from other businesses or directly from the manufacturer in contracts or agreements. B2B marketing doesn't always involve wholesale products. For example, it could be a business selling business services such as a website or digital marketing. B2C and B2B behavior are not mutually exclusive terms, as similarities and differences exist, with some key differences listed below:

  • In a straight re-buy, the fourth, fifth and sixth stages are omitted. In a modified re-buy scenario, the fifth and sixth stages are precluded. In a new buy, all stages are conducted



Use of technologies

Marketing management can also rely on various technologies within the scope of its marketing efforts. Computer-based information systems can be employed, aiding in better processing and storage of data. Marketing researchers can use such systems to devise better methods of converting data into information, and for the creation of enhanced data gathering methods. Information technology can aid in enhancing an MKIS' software and hardware components, and improve a company's marketing decision-making process.

In recent years, mobile devices have gained significant market share, while desktop and laptop devices have seen a decline.[28] Information technology typically progresses at a fast rate, leading to marketing managers being cognizant of the latest technological developments. Today smart phones are at the center of new mobile marketing trends, delivering the right message to the right person at the right time. A firm can lose out to competitors should it ignore technological innovations in its industry.

Technological advancements can lessen barriers between countries and regions. Using the World Wide Web, firms can quickly dispatch information from one country to another without much restriction. Prior to the mass usage of the Internet, such transfers of information would have taken longer to send, especially if done via snail mail, telex, etc.

Recently, there has been a large emphasis on data analytics. Data can be mined from various sources such as online forms, mobile phone applications and more recently, social media. Internet marketing is another branch of online marketing, where SEO (Search Engine Optimisation) is regarded as an effective method of increasing your website's presence in organic searches for creating potential customers.

Services marketing

Services marketing relates to the marketing of services, as opposed to tangible products. A service (as opposed to a good) is typically defined by the paraphrase of 5 I's :

Inseparability - The customer cannot be separated from the service and therefore, the use of it is inseparable from its purchase (i.e., a service is used and consumed simultaneously)

Intangibility - It does not possess material form, and thus cannot be touched. Yet, many services are directly connected to products. Services (compared with goods) can also be viewed as a spectrum. Not all products are either pure goods or pure services. An example would be a restaurant, where a waiter's service is intangible, but the food is tangible.

  • Service Products - Those pure services or major service components, directly offered to customers, such as a gig
  • Product Services - Those service elements associated with a physical objects such as on-line shopping or instrument tuning

Inconsistency (Variability) – Every delivery of the service will be different. Furthermore, the use of a service is inherently subjective, meaning that several persons experiencing a service would each experience it uniquely.

Inventory (Perishability) – the service cannot last

Involvement – customer can tailor the service while using it (e.g. hairdresser)

For example, a train ride can be deemed a service. If one buys a train ticket, the use of the train is typically experienced concurrently with the purchase of the ticket. Although the train is a physical object, one is not paying for the permanent ownership of the tangible components of the train.

Right-time marketing

Right-time marketing is an approach to marketing which selects an appropriate time and place for the delivery of a marketing message.[29][30]

As the number of vendors and delivery channels has increased, customers demand a right time and place for accepting messages and only pay attention to messages when and how it is convenient for them.[29][30] These tools generally fall into "reactive" or push offers (e.g., someone searches "pizza" and receives an offer from a local restaurant) and new "predictive" models where a Intelligent Personal Assistant understands past preferences and delivers related products or services.

Guerrilla marketing

Guerrilla marketing is an advertising strategy in which low-cost unconventional means (graffiti or street art, sticker bombing, flash mobs) are used, often in a localized fashion or large network of individual cells, to convey or promote a product or an idea.

Digital Marketing

Digital marketing is an umbrella term for the targeted, measurable, and interactive marketing of products or services using digital technologies to reach and convert leads into customers.The key objective is to promote brands, build preference and increase sales through various digital marketing techniques. It is embodied by an extensive selection of service, product and brand marketing tactics, which mainly use the Internet as a core promotional medium, in addition to mobile and traditional TV and radio.

See also


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