PM-Unit 5 Advancements in Marketing|1st semester B.Com
Unit 5
Advancements in Marketing
Social Marketing
Social marketing has the primary goal of achieving "common good". Traditional commercial marketing aims are primarily financial, though they can have positive social effects as well. In the context of public health, social marketing would promote general health, raise awareness and induce changes in behaviour. Social marketing has been a large industry for some time in 2021 and was originally done with newspapers and billboards, but similar to commercial marketing has adapted to the modern world. The most common use of social marketing in today's society is through social media.[ However, to see social marketing as only the use of standard commercial marketing practices to achieve non-commercial goals is an oversimplified view.
Online Marketing
Online marketing refers to marketing via the internet using company websites, online advertising and promotions, email marketing, online video, and blogs. Social media and mobile marketing also take place online and must be closely coordinated with other forms of digital marketing.
i)Websites and Branded Web Communities
For most companies, the first step in conducting online marketing is to create a website. Websites vary greatly in purpose and content. Some websites are primarily marketing websites, designed to engage customers and move them closer to a direct purchase or other marketing outcome. For example, car companies like Hyundai operate marketing websites. Once a potential customer clicks in to Hyundai’s site, the carmaker wastes no time trying to turn the inquiry into a sale and then into a long-term relationship. The site opens with a promotional message, then offers a garage full of useful information and interactive selling features, including detailed descriptions of current Hyundai models, tools for designing your own Hyundai,etc.
In contrast, brand community websites do much more than just sell products. Instead, their primary purpose is to present brand content that engages consumers and creates customer−brand community. Such sites typically offer a rich variety of brand information, videos, blogs, activities, and other features that build closer customer relationships and generate engagement with and between the brand and its customers.
For example, at Sephora’s Beauty Talk site, visitors can interact with like-minded people to explore and discover beauty products, post photo and links, and ask other members to weigh in with information and advice. And you can’t buy anything at ESPN.com. Instead, the site creates a vast branded sports community:
ii)Online Advertising
As consumers spend more and more time online, companies are shifting more of their marketing dollars to online advertising to build brand sales or attract visitors to their internet, mobile, and social media sites. Online advertising has become a major promotional medium. The main forms of online advertising are display ads and search related ads. Together, display and search related ads account for the largest portion of firms’ digital marketing budgets. Online display ads might appear anywhere on an internet user’s screen and are often related to the information being viewed.
Online marketing combines the internet's creative and technical tools, including design, development, sales and advertising, while focusing on the following primary business models:
- E-commerce.
- Lead-based websites.
- Affiliate marketing.
- Local search.
- Social media.
Search engine optimization (SEO)
As an internet marketing strategy, SEO considers how search engines work, the computer-programmed algorithms that dictate search engine behaviour, what people search for, the actual search terms or keywords typed into search engines, and which search engines are preferred by their targeted audience. SEO is performed because a website will receive more visitors from a search engine when websites rank higher on the search engine results page (SERP). These visitors can then potentially be converted into customers.
SEO is not an appropriate strategy for every website, and other Internet marketing strategies can be more effective, such as paid advertising through pay per click campaigns, depending on the site operator's goals. Search Engine Marketing is the practice of designing, running and optimizing search engine ad campaigns. Its difference from SEO is most simply depicted as the difference between paid and unpaid priority ranking in search results. SEM focuses on prominence more so than relevance; website developers should regard SEM with the utmost importance with consideration to visibility as most navigate to the primary listings of their search.] A successful Internet marketing campaign may also depend upon building high-quality web pages to engage and persuade internet users, setting up analytics programs to enable site owners to measure results, and improving a site's conversion rate
Green Marketing
Green marketing is the marketing of products that are presumed to be environmentally safe.Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising.
Other similar terms used are Environmental Marketing and Ecological Marketing. Thus "Green Marketing" refers to holistic marketing concept wherein the production, marketing consumption an disposal of products and services happen in a manner that is less detrimental to the environment with growing awareness about the implications of global warming, non-biodegradable solid waste, harmful impact of pollutants etc., both marketers and consumers are becoming increasingly sensitive to the need for switch in to green products and services. While the shift to "green" may appear to be expensive in the short term, it will definitely prove to be indispensable and advantageous, cost-wise too, in the long run.
Examples of Green Marketing in India
1.Digital Tickets by Indian Railways. :- Recently IRCTC has allowed its customers to carry PNR no. of their E-Tickets on their laptop and mobiles. Customers do not need to carry the printed version of their ticket anymore.
2. Lead Free Paints from Nerolac - Nerolac has worked on removing hazardous heavy metals from their paints. Lead in paints especially poses danger to human health where it can cause damage to Central Nervous System, kidney and reproductive system. Children are more prone to lead poisoning leading to lower intelligence levels and memory loss.
3. Wipro's Green Machines-Wipro Infotech was India's first company to launch environment friendly computer peripherals. For the Indian market, Wipro has launched a new range of desktops and laptops called Wipro Green ware. These products are RoHS (Restriction of Hazardous Substances) compliant thus reducing e-waste in the environment.
4..No Polythene carry bags for free :-Forest & Environmental Ministry of India has ordered to retail outlets like More, Central, D-Mart etc that they could provide polythene carry bags to customers only if customers are ready for pay for it.
5. Green IT Project: SBI by using Eco and power friendly equipment in its 10,000 new ATM's, has not only saved power costs and earned carbon credits, but also set the right example for others. SBI also entered into green service known as “Green Channel Counter”and is providing services like; paper less banking, no deposit slip, no withdrawal form, no checks, no money transactions form etc. The wind project is the first step in the SBI 's green banking program dedicated to the reduction of its carbon footprint and promotion of energy efficient processes, especially among the bank's clients.
Rural marketing
Rural marketing involves the process of developing, pricing, promoting, distributing
rural specific product and a service leading to exchange between rural and urban market
which satisfies consumer demand and also achieves organizational objectives. It is a two-way marketing process wherein the transactions can be:
1. Urban to Rural
It involves the selling of products and services by urban marketers in rural areas.
These include: Pesticides, FMCG Products, Consumer durables, etc.
2. Rural to Urban
Here, a rural producer (involved in agriculture) sells his produce in urban market.
This may not be direct. There generally are middlemen, agencies, government co-operatives,
etc who sell fruits, vegetables, grains, pulses and others.
3. Rural to Rural
These include selling of agricultural tools, cattle, carts and others to another village
in its proximity.
Mobile marketing
Mobile marketing is perhaps the fastest-growing digital marketing platform.
Smartphones are ever present, always on, finely targeted, and highly personal. This
makes them ideal for engaging customers anytime, anywhere as they move through the
buying process.
For example, Starbucks customers can use their mobile devices for everything from finding the nearest Starbucks and learning about new products to placing
and paying for orders.
Four out of five smartphone users use their phones to shop—browsing product information through apps or the mobile web, making in-store price comparisons, reading online product reviews, finding and redeeming coupons, and more.
Almost 30 percent of all
online purchases are now made from mobile devices, and mobile online sales are growing
2.6 times faster than total online sales. Marketers use mobile channels to stimulate immediate buying, make shopping easier,
enrich the brand experience, or all of these
Mobile marketing is any advertising activity that promotes products and services via mobile devices, such as tablets and smartphones. It makes use of features of modern mobile technology, including location services, to tailor marketing campaigns based on an individual's location.
Mobile marketing may include promotions sent through SMS text messaging, MMS multimedia messaging, through downloaded apps using push notifications, through in-app or in-game marketing, through mobile websites, or by using a mobile device to scan QR codes
Proximity systems and location-based services can alert users based on geographic location or proximity to a service provider.
Mobile marketing is an indispensable tool for companies large and small as mobile devices have become ubiquitous. The key players in the space are the brands (and companies that they represent through advertising), and service providers that enable mobile advertising.
Mobile advertising targets audiences not so much by demographics but by behaviors (though demography plays a part, such as the fact that iPad users tend to be older and wealthier).
Marketing analytics
Marketing analytics comprises the processes and technologies that enable marketers to evaluate the success of their marketing initiatives. This is accomplished by measuring performance (e.g., blogging versus social media versus channel communications). Marketing analytics uses important business metrics, such as ROI, marketing attribution and overall marketing effectiveness. In other words, it tells you how your marketing programs are really performing.
Social Media Marketing (SMM)
Social media marketing (SMM) is a form of internet marketing that utilizes social networking websites as a marketing tool. In other words, SMM refers to techniques that target social networks and applications to spread brand awareness or promote particular products. The goal of SMM is to produce content that users will share with their social network to help a company increase brand exposure and broaden customer reach.
It’s hard to find a brand website, or even a traditional media ad, that doesn’t feature links to the brand’s Facebook, Instagram, Twitter, Google+, YouTube, Snapchat, Pinterest, LinkedIn, or other social media sites.
Social media provide exciting opportunities to extend customer engagement and get people talking about a brand. Some social media are huge—Facebook has more than 1.59 billion active monthly members. Instagram has more than 400 million active monthly users, Twitter has more than 315 million monthly users, Google+ racks up 300 million active monthly visitors, and Pinterest draws in more than 100 million users. Reddit, the online social news community, has 234 million unique visitors each month from 185 countries.
Online social media provide a digital home where people can connect and share important information and moments in their lives. As a result, they offer an ideal platform for real-time marketing, by which marketers can engage consumers in the moment by linking brands to important trending topics, real-world events, causes, personal occasions, or other important happenings in consumers’ lives
The channels to use for social media marketing are as follows:
- YouTube
- Snapchat
Email Marketing
Email marketing pertains to sending emails to your client base to promote the business. One way to build on email marketing is to use a newsletter. You can ask people to sign up for the newsletter when they come to your website. You could then use this platform to send them regular updates about your products and services.
The best email marketing campaigns involve a list of subscribers earned by your content, and not paid for by the company. Understand that the users who subscribe on their own, are most likely to engage with your brand, and it is them you should target properly. Email marketing can be used to create brand awareness, build a loyal clientele, and take honest feedback from your customers.Live streaming Marketing
Live streaming is a social media feature on platforms like Facebook and Instagram that invites brands and users to share unedited, raw footage in real time.
As audiences began to crave greater authenticity for brands, raw and genuine video grew in popularity. Majority of customers now say that they’d rather watch a live video than read a company’s blog.
Network marketing
Network marketing is a business model that depends on person-to-person sales by independent representatives, often working from home. A network marketing business may require you to build a network of business partners or salespeople to assist with lead generation and closing sales.
Affiliate Marketing
Affiliate marketing is a type of digital marketing wherein a business partners up with another business and promotes it on their website/app. Essentially, affiliate marketers sell other people’s products and receive a commission when a lead is generated.
Working with affiliates can help you to expand your reach. It can also make your marketing efforts seem more organic. For example, the Indian travel company Make My Trip has been running an affiliate program as part of its digital marketing strategy for years. Those interested can partner easily with the company and earn revenue whenever they help convert a lead.
Chat bot
A chat bot or chatter bot is a software application used to conduct an on-line chat conversation via text or text to speech in lieu of providing direct contact with a live human agent.
Chat bots are used in dialog systems for various purposes including customer service, request routing, or information gathering. While some chat bot applications use extensive word-classification processes, natural language processors, and sophisticated AI, others simply scan for general keywords and generate responses using common phrases obtained from an associated library or database
Most chat bots are accessed on-line via website popups or through virtual assistants They can be classified into usage categories that include: commerce,education,entertainment finance health news and productivity (e-commerce via chat),
A chat bot or chatter bot is a software application used to conduct an on-line chat conversation via text or text to speech in lieu of providing direct contact with a live human agent.
Chat bots are used in dialog systems for various purposes including customer service, request routing, or information gathering. While some chat bot applications use extensive word-classification processes, natural language processors, and sophisticated AI, others simply scan for general keywords and generate responses using common phrases obtained from an associated library or database
Most chat bots are accessed on-line via website popups or through virtual assistants They can be classified into usage categories that include: commerce,education,entertainment finance health news and productivity (e-commerce via chat),
Influencer Marketing
Influencer marketing is one of the upcoming forms of digital marketing. It makes use of people with an enormous following on their social media accounts. Businesses can hire these influencers to promote their products/websites.
The influencer serves as your brand ambassador. He/she can post photos, videos, or feature your product on their blog or website to create brand awareness about your business. For example, many websites like Amazon etc uses celebrities for influencer marketing.
However, one does not need to specifically hire celebrities for influencer marketing, although a lot of big brands do it these days. If you’re a smaller brand, a popular person on social media with a few thousand loyal followers can also be used. When done right, the scope of influencer marketing is huge.
Global marketing
Global marketing is defined as “marketing on a worldwide scale reconciling or taking global operational differences, similarities and opportunities in order to reach global objectives"
Global marketing is also a field of study in general business management that markets products, solutions and services to customers locally, nationally, and internationally
International marketing is the application of marketing principles in more than one country, by companies overseas or across national borders It is done through the export of a company's product into another location or entry through a joint venture with another firm within the country, into the country. International marketing is required for the development of the marketing mix for the country. International marketing includes the use of existing marketing strategies, mix and tools for export, relationship strategies such as localization, local product offerings, pricing, production and distribution with customized promotions, offers, website, social media and leadership.
Experiential marketing
Experiential marketing is a marketing strategy that immerses customers within a product or deeply engages them. In short, experiential marketing enables consumers to not just buy products or services from a brand, but to actually experience the brand. Emotional connections between the brand and the consumer are created through memorable and unique experiences. Experiential marketing not only involves customer engagement, but also often improves it in the process.
Experiential marketing encompasses not just the face- to- face event itself, but also leading up to and coming out of the experience, event or activation.
Building Relationship and Customer Retention
Building Customer
Relationships: Customer
Satisfaction, Quality.,
Value and Service
Satisfying Customer Needs
To succeed or simply to survive, companies need a new philosophy. To win in
today's marketplace, companies must be customer-centred - they must deliver
superior value to their target customers. They must become adept in building
customer relationships, not just building products. They must be skilful in
market engineering, not just product engineering
Defining Customer Value and Satisfaction
Consumers buy from the firm that they believe offers the highest customer delivered value - the difference between total customer value and total customer cost . For example, suppose that an Irish farmer wants to buy a
tractor. He can either buy the equipment from his usual supplier or a cheaper east European product. The salespeople for the two
companies carefully describe their respective offers to the farmer.
Customer Satisfaction
Consumers form judgements about the value of marketing offers and make their
buying decisions based upon these judgements. Customer satisfaction with a
purchase depends upon the product's performance relative to a buyer's expectations, A customer might experience various degrees of satisfaction. If the
product's performance falls short of expectations, the customer is dissatisfied. If
performance matches expectations, the customer is satisfied. If performance
exceeds expectations, the customer is highly satisfied or delighted.
But how do buyers form their expectations? Expectations are based on the
customer's past buying experiences, the opinions of friends and associates, and
marketer and competitor information and promises. Marketers must be careful to
set the right level of expectations. If they set expectations too low, they may
satisfy those who buy, but fail to attract enough buyers. In contrast, if they raise
expectations too high, buyers are likely to be disappointed.
Delivering Customer Value and Satisfaction
Customer value and satisfaction arc important ingredients in the marketer's
formula for success.
Value Chain
Every firm consists of a collection
of activities performed to design, produce, market, deliver and support the firm's
products. The value chain breaks the firm into nine value-creating activities in an
effort to understand the behaviour of costs in the specific business and the potential sources of competitive differentiation. The nine value-creating activities
include five primary activities and four support activities.
Under the value-chain concept, the firm should examine its costs and performance in each value-creating activity to look for improvements. It should also
estimate its competitors' costs and performances as benchmarks. To the extent
that the firm can perform certain activities better than its competitors, it can
achieve a competitive advantage.
The firm's success depends not only on how well each department performs
its work, but also on how well the activities of various departments are coordinated.
Value Delivery System
In its search for competitive advantage, the firm needs to look beyond its own value chain, into the value chains of its suppliers, distributors and, ultimately, customers. More companies today are 'partnering' with the other members of the supply chain to improve the performance of the customer value delivery system.
Creating Customer Retention
Retaining Customers
Beyond building stronger relations with their partners in the supply chain,
companies today must work to develop stronger bonds and loyalty with their ultimate customers.
Good customer relationship management creates customer satisfaction. In turn, satisfied
customers remain loyal and talk favourably to others about the company and its products.
Studies show big differences in the loyalty between satisfied and dissatisfied customers.
Even slight dissatisfaction can create an enormous drop in loyalty. Thus, the aim of customer relationship management is to create not only customer satisfaction but also customer delight.
Keeping customers loyal makes good economic sense. Loyal customers spend more
and stay around longer. Research also shows that it’s five times cheaper to keep an old
customer than acquire a new one.
Growing Share of Customer
Beyond simply retaining good customers to capture customer lifetime value, good customer relationship management can help marketers increase their share of customer—
the share they get of the customer’s purchasing in their product categories. Thus, banks
want to increase “share of wallet.” Supermarkets and restaurants want to get more “share of stomach.” and airlines want greater
“share of travel.”
To increase share of customer, firms can offer greater variety to current customers. Or
they can create programs to cross-sell and up-sell to market more products and services
to existing customers. For example, Amazon is highly skilled at leveraging relationships
with its 304 million customers worldwide to increase its share of each customer’s spending
budget
The Need for Customer Retention
Today, outstanding companies go all out to retain their customers. Many markets
have settled into maturity and there are not many new customers entering most
categories. Competition is increasing and the costs of attracting new customers
are rising. In these markets, it might cost five times as much to attract a new
customer as to keep a current customer happy.
Strategic Alliances and Networks
Strategic alliances are more formal arrangements, sometimes under contract, for
companies to collaborate and act jointly. Strategic alliances are a form of strategic partnering, but partnering also includes contracting, ownership integration, and/or entering into mergers and consolidations. Strategic alliances are defined as any agreement between or among firms to cooperate in an effort to accomplish some strategic purpose.
The defining characteristics of strategic
alliances are that
(1) two or more companies unite to pursue a set of agreed goals,
but remain independent even though in an alliance;
(2) the alliance members share
the benefits of the alliance and control over the assigned tasks; and
(3) the firms in
the alliance contribute on a continuing basis to one or more strategic areas (e.g.
technology sharing, product development or marketing)
For example, AT&T (the leading US high-speed DSL, Internet and consumer voice
services company) and Yahoo (the global Internet destination company) have operated a successful strategic alliance since 2001, to bring broadband Internet services
to a wide range of consumer and small business customers. Together the companies
provide a fully integrated, co-branded broadband experience serving the majority of
AT&T’s 8 million high-speed DSL Internet customers
.
1 The type of network relationship, which can vary from the highly collaborative
(involving various forms of inter organisational cooperation and partnership), to
the mainly transactional (the traditional buyer–seller transaction,
2 The volatility of environmental change – the argument that, in highly volatile
environments, external relationships with other organisations must be flexible
enough to allow for alteration – and possibly termination – in a short time period.
On the other hand, when the environment is more stable, more enduring forms
of collaboration are more attractive.
Using these dimensions to classify networks produces the model ,
suggesting that there are at least four types of network prototype:
1 The hollow network – a transaction-based organisational form, associated with
highly volatile environments. The term ‘hollow’ emphasises that the core organisation draws heavily on other organisations to satisfy customer needs. For example,
organisations that compete in this way are often specialists that coordinate an extensive network of suppliers and buyers. One example of this type of network
is Monster.com, the online recruitment and careers company. Monster connects
job seekers with employers, as well as providing them with careers advice online.
Some 75 million individuals have established personalised accounts with Monster,
which operates in 36 countries with 4,200 employees. The hollow organisation
offers a buffer against the risks in a frequently changing environment
2 The flexible network – associated with conditions of high environmental volatility but characterised by inter organisational links which tend to be collaborative
and long term in duration, where the network coordinator manages an internal
team that identifies customer needs and establishes sources of supply to satisfy
customer requirements. For example, many of the multinational pharmaceutical
firms are tied to core competencies in organic and inorganic chemistry and are
seeking to establish alliances with entrepreneurial biotechnology firms.
Principles of marketing Unit 1 Introduction to marketing
Principles of marketing Unit 2 Consumer Behaviour and Market Segmentation
Principles of marketing Unit-3 Product and Pricing Strategy
Principles of marketing Unit 4-Marketing channels and Promotional strategy
First semester English Chapter 1 The Last Leaf
First semester English Chapter 2 All creatures great and small
First semester English Chapter 3 The Heart of a Tree
First semester English Chapter 4 Daughter
First semester English Chapter 5 The Ploughman
First semester English Chapter 6 My Teacher
First semester English Chapter 8 A conversation with a reader
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PM- Unit 5 Advancements in Marketing( syllabus ): (Concepts only ) ( 08 Hrs )
Advancements in Marketing - Social Marketing, online marketing - Search Engine Optimization (SEO)- Green marketing, Rural Marketing; Mobile Marketing - Marketing Analytics - Social Media Marketing - Email Marketing - Live Video Streaming Marketing - Network Marketing, Affiliate Marketing , Chatbots, Influencer Marketing, Global Marketing, Experiential Marketing, Relationship Building and Customer Retention, Strategic Alliances and Networks
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