 Marketing
Resources
Marketing Associations and Groups
The American
Marketing Association, one of the largest professional associations for
marketers, has 38,000 members worldwide in every area of marketing. For over six
decades the AMA has been the leading source for information, knowledge sharing
and development in the marketing profession.
Begun in 1922 as the
National Industrial Advertising Association, today's Business Marketing
Association represents a lifetime of expertise in business-to-business marketing
and communications. For more than 80 years, BMA has been the pre-eminent service
organization for professionals in this vital industry. As market realities so
often prove, no one stays in business that long without continually meeting
their customers' needs.
The Power of Direct:
Relevance. Responsibility. Results.
The Direct Marketing Association is the leading global trade association of
business and nonprofit organizations using and supporting direct marketing tools
and techniques.
DMA advocates industry standards for responsible marketing, promotes relevance
as the key to reaching consumers with desirable offers, and provides
cutting-edge research, education, and networking opportunities to improve
results throughout the entire direct marketing process. Founded in 1917, DMA
today has more than 3,600 members from the US and 46 other nations, including
the majority of companies listed on the Fortune 100.
To advance
independent publishing through professional development, cooperative marketing,
and industry affiliations. To support free speech and the right to publish
without restriction. To pledge fair and respectful treatment of those
professionals with whom we collaborate.
The mission of the
Promotion Marketing Association, Inc. (PMA) is clear-cut and purposeful: To be
the recognized voice for integrated marketing solutions; helping businesses
achieve specific and measurable brand-building goals via proprietary:
Resources, Education, Networking, Community.
As the world's leading non-profit promotion marketing trade association, we
represent the interests of marketers, retailers, agencies, suppliers and
academics. We champion the highest standards of excellence and recognition in
the industry. Our main goal is to foster a better understanding of how promotion
builds brand equity through its integration in the overall marketing process.
WOMMA is the
official trade association for the word of mouth marketing industry. WOMMA's
mission is to promote and improve word of mouth marketing by: protecting
consumers and the industry with strong ethical guidelines, promoting word of
mouth as an effective marketing tool, and setting standards to encourage its
use.
We are the leading companies pioneering WOM techniques. We've mastered the
understanding of how to create genuine customer enthusiasm, as well as how to
share it with future fans. We're fantastic brands and marketers who know that
happy customers are our most powerful advocates. We're innovative agencies who
understand how to empower and amplify the voice of the consumer. We're the good
guys, committed to protecting consumers with strong ethical guidelines.
Three Types of Marketing
Undifferentiated
marketing assumes everyone is the same and aims a particular product at
everyone. Advantages: easy to plan, doesn't miss anyone. Disadvantages: can be
wasteful, ignores segmentation, can lead to disappointing sales.
Differentiated marketing aims the product at specific segments in the
market. The company may be trying to sell exactly the same product to different
segments but it will change its promotional methods and the image it creates.
Advantages: separate mix can be developed for each segment, different markets
can be easily identified. Disadvantages: Can be costly, message may by-pass some
customers.
Concentrated marketing is when the message is aimed at just one small
market. Advantages: Small firms can concentrate their marketing, allows a
specific mix to be developed. Disadvantages: Ignores other areas of the market,
can cause problems in future as may make it more difficult for company to
expand.
The Marketing Mix
The marketing mix
consists of the 4 Ps: Product, Price, Promotion, Place.
Product: The product is the most important aspect of the marketing mix.
The product can be a service or even a holiday destination. Products have both
tangible and intangible benefits. Tangible benefits include benefits which can
be measured such as the top speed of a car. Intangible benefits are benefits
that cannot be measured such as the enjoyment the customer will get from the
product. It is important that the product is changed as necessary to bring it up
to date and prevent it from being overtaken by competitors.
Price: It is very important that the correct price is charged for a
product. If the price is too high consumers will avoid the product as they will
believe it to be too expensive yet if the product is priced too low they may
believe that there is something wrong with the product for it to be so cheap.
Also if the company charges too low a price, it may not cover its costs. There
are many different pricing strategies that companies can use to decide on a
price for their product including market and psychological pricing methods.
Place: Place decides where the product is to be sold. There are 3 main
distribution channels to choose from:
- Traditional - selling the product to wholesalers who will then sell the product on to retail outlets.
- Modern - producers selling the product directly to the retail outlet.
- Direct - the producer selling directly to the consumer such as door to door sales or over the internet.
Promotion: Once the product has been made and the price set, it is important
that potential customers are told about the product. Promotion can also be used
for reassuring the consumer that the product is of good quality and persuading
them to purchase the product. Promotional methods include: advertising, direct
selling, point of sale and incentives.
- Advertising: Billboards, TV, radio, newspaper, etc.
- Sales promotion: Competitions, discounts, coupons, etc.
- Publicity: Sponsorship, etc.
- Personal selling: Tele-marketing, presentations, etc.
- Internet
It is important that
the promotional method or methods chosen are well suited for the product or
service. When choosing a promotion method take into account the nature of
product, stage the product is at in its life cycle, and available funds.
These different types of promotion can be split into two main categories: above
the line and below the line promotion.
Below the line promotional methods include:
In-store: Vouchers and special offers.
Loyalty card offers: Can encourage repeat purchases or encourage someone to
purchase a product that they would not normally buy.
Competitions: Include both in-store and competitions on the back of packaging.
Packaging: Used as an 'eye-catcher' to attract the consumers' attention.
Above the line promotional methods include:
Press: Includes newspapers and magazines. Can be detailed and ad retained but
little color is available in newspaper print so ads don't pop.
TV Advertising: Very popular so ad can be shown to large audiences and can also
demonstrate the product in use but there is a reluctance to watch ads and they
are sometimes difficult to remember. The advent of TiVo and DVRs is having
a large impact on TV Advertising.
Radio: Many stations to advertise on and ads can be targeted if a radio station
has a particular audience.
Cinema: Color, sound can be used well on big screen and age group can be
targeted but there is a limited audience and message can be short-lived.
Posters, Billboards & Benches: Can be sited near shops for impulse buying and
good for short punchy messages but give a limited amount of information and can
be effected by weather and graffiti.
Internet: New form of advertising. It is easy to monitor and is cheap to set up
but there is an uncontrollable audience.
Marketing Definitions
- Brand Leader - The company with the highest percentage share of a certain market.
- Branded Goods - Goods with a brand name or identity.
- Cash Cow - A product with high market share of a low growth market.
- Cluster Sampling - Choosing people from a specific area.
- Complimentary Goods - Products that go well together e.g. fish and chips.
- Constraints - Factors which prevent the company from being able to meet its objectives.
- Cost Plus - Adding a set profit percentage to estimated total cost per unit.
- Dog - A product with a low market share of a low growth market.
- Extension Strategy - A plan for lengthening the cycle of a product or brand.
- Global Marketing - Marketing throughout the world as if it was one big market by using the same brand, advertising etc.
- Industrial Markets - Selling goods and services to other companies.
- Market Intelligence - Often data collected by market research on consumers, distributors or competitors.
- Market Mapping - Selecting variables that differentiate brands within a market (e.g. price) and then plotting the position of each product on a graph. This enables firms to identify gaps in the market.
- Market Research - The process of gathering data to enable marketing decisions to be made accurately based on relevant information.
- Market Share - The percentage of sales by a certain company; largest is market leader.
- Marketing Mix - The four Ps: product, price, promotion, place. These are used to carry out a business' marketing strategy.
- Marketing Model - A framework for making marketing decisions in a scientific manner.
- Marketing Planning - Producing a schedule of marketing activities based on decisions about the marketing mix.
- Marketing Strategy - A medium to long term plan for meeting marketing objectives.
- Marketing Targets - Specific, measurable goals to be achieved within a limited time scale.
- Marketing - The function that links the company and the customer to get the right product to the right place at the right time.
- Mass Market - A product which has mass appeal so can be promoted to all types of customer.
- Mass Marketing - Mass marketing is creating a product which appeals to all types of consumer. Mass marketing often ends up with the brand name being used instead of the product name e.g. Hoover not vacuum cleaner. Companies make use of global mass markets which means selling the same product with similar marketing techniques all around the world.
- Niche Market - A small, concentrated market which is often a section of a larger market.
- Niche Marketing
- Niche marketing is aiming a product at a specific type of consumer. A niche
market is usually a smaller segment of a larger market. Companies using a
niche market often get less sales than they would if they aimed at a mass
market so they have to make up for this by charging a higher price (as the
product is often more specific to consumer needs, the customer is normally
willing to pay more). It is easier for smaller firms to operate niche markets
as there is less competition from bigger companies.
- Penetration Pricing - Setting a price low to gain market share.
- Pester Power - The ability of children to pester their parents into buying what they want.
- Portfolio Analysis - Examination of all the products held by a firm to identify strengths and potential.
- Price Discrimination - Charging different prices to different people who receive the same product.
- Price Elasticity - Measure of how demand for a product changes with a change in price.
- Primary Research - Gathering of first hand data which is tailored to find exactly what the company wants.
- Problem Child - A product with a low market share of a high growth market.
- Product Awareness - This shows how many customers know about a certain brand. Market leaders such as Coca Cola may have 100% awareness.
- Product Differentiation - The extent to which customers perceive a product to be different to a competitors.
- Product Positioning - Deciding on an image for a product and therefore its target market.
- Profit Utilization. How a company uses its profit after tax has been deducted.
- Qualitative Data - Collecting people's opinions including their thoughts and ideas.
- Quantitative Data - Collecting statistics and numerical data. Many people are asked to make it more accurate.
- Quota Sampling - Choosing people in proportion to their known demographic profile.
- Random Sampling - Choosing people so that every person has the same chance of being picked as someone else.
- Revenue Orientation - When extra sales can be achieved whilst incurring few extra costs.
- Sampling - A group of people in a market research exercise who have been selected to represent the market as a whole.
- Segmentation - How a certain market is divided up.
- Star - A product with a high market share of a high growth market.
- Stratified sampling - Choosing people from a specified group in the population.
- SWOT Analysis - An analysis of the strengths, weaknesses, opportunities and threats to a business. Strengths and weaknesses are internal to the organization and opportunities and threats are external to the organization.
- Target Market - The group of consumers a company aims its product at (can be wide or concentrated).
- Trade exhibitions - Suppliers of a certain sector can display their products here for other companies to purchase.
- Vision - An ambitious idea of where the business wants to be in the future.
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