Thursday, 7 February 2013

Internet Marketing Mix: Is it beyond of 4Ps/7Ps?

4Ps refers to Product, Price, Place and Promotion. It is traditional marketing concept and known as tools of Marketing Management. It works operational point of view, controlled by marketers. 4Ps are focused on internal variables, so, it seems as tool of Physical Marketing Management .Strategic point of view there is something drawbacks in it. Strategic concept is more customers centric. When customers become more valuable, then, the tool to deal with market is 7Ps (Product, Price, Promotion, Place, Participants/ People, Process, and Physical evidence).

First four Ps are controlled by Marketers but last three Ps can not be controlled, because there is more participation of Customers and together represents service mix.

 Internet market is different from physical market, it is virtual market, products are here intangible, the success is depends upon experience of the customers. Even all Ps acts at the same place i.e. at Web Page of the company. We can say everything available in a same plate.

 Web marketing depends not only upon Strategic and Operational factors but also Organisational and Technological factors. So we can not deal this market with 4Ps or 7Ps.

There is a concept of 4Ss for Internet market. Like 4Ps, that is a tool for Internet marketing.

4Ss are  Scope, Site, Synergy, and System.

Scope-Deals with strategic issues and defines objective of the web site /Company.

 Market analysis (competition, competitors, market strength, etc.), Information about customers (profile and behaviour of the costumers), Internal analysis (resources, work and profile of the executives) and Role of the web site (type of the web site; educational, informational, promotional, etc.) comes under it.

Site- Deals with operational issues and defines   web experiences of the customer.

 Like domain name, contents, simplicity, navigation, personalisation and customisation etc. In the other words, Site represents all the matter about 4Ps (Product, Price, Place and Promotion).

Synergy- Deals with integration issues and defines integration between and with in Front office (market with marketing activities), Back office (web site with organisational process and database) and Third party (responsible for commercials, logistics and site activities).

System- Deals with technological issues and defines Web site administration, recent technology or required technology (soft ware, hard ware, payment system and protocols, etc.)

 
 So, marketing mix point of view Internet marketing mix is beyond of 4Ps/7Ps.

Monday, 28 January 2013

Company-Supplier-Vendor relationship



Vendors and suppliers are very important for any business. This service provides a safe hand to build awareness and delivery of product or services to the customers and do add value to the business. All business should maintain good relationship with vendor and supplier and in long run without mutual benefit it never works. So, mutual benefit is necessary for building strong relationship. In this competitive scenario this becomes vital.

The foundation of good relationship depends upon Respect, Trust, Mutual benefits and Fairness from both sides.

There are many facts in a vendor and supplier relationship to getting the perfect deal.
The facts are;
What is in it for me,
What is in it for our relationship for long run,
What do matters to my business,
Can they deliver at promised time or within time interval.

Wednesday, 16 January 2013

Marketing Myopia



Marketing Myopia
 

Marketing Myopia is short sightedness or narrow ness of a company to define its business. It may be of product oriented or customer oriented.

  Product orientation – Company defines itself as a product producer of quality of product at low cost. (Product concept-an old marketing concept)

 Customer orientation- Company define itself as a satisfier of customer needs and wants (Modern Marketing concept).

 Both concepts are good, holds good at a certain level but beyond that leads Myopia.
Because Marketers do think we are doing good and getting profit, but they don’t consider “what will be the future of competition”.

  Managers prefer to work in same industry in which they were recruited first; even companies  prefer Managers from same sector in which they are dealing. It is also a cause of leading Marketing Myopia.

Human resource department should recruit Managers from different- different   industry, so that problems can be scrutinised and future of competition can define well, and therefore Myopia can be avoided.

 Case of Tata Nano

 Why it is failure in market?
 Answer-  Due to Marketing Myopia.

 
Nano is a good car as per price and product, even it is customer oriented and law of demand holds good but this Car is considered failure in the market.

  Marketing of Tata Nano is pure concept of Flanking Warfare (making a parallel market in a given market).

Car market is niche market and Tata Nano made a sub market in that market. That sub market was considered a low priced car market for every one and Car renounced as Peoples’ car => “Aam Admi car”.

 Here  Marketing Myopia is acting. 

 The perception behind having a car is having a prestigious product considered as value additional product.
Means, having a Car percept -“I am not general “.  And perception can’t change (generally).

The future of competition  of Car market is not in the way of low priced or lowest price.

The competition of Car market is in fields of style and value creation.

Friday, 28 December 2012

Monthly Household Grocery Purchase shift from Kirana to Organised Retail Outlet


 
  

A Few facts which affects Monthly (Bulk)shoping from Kirana Stores:-

Attractive and appealing sales promotions influences switch over from kirana stores to organised retail outlets.

There is reduction in the monthly purchased value of the household items (grocery) from the conventional kirana stores due to the one stop shopping at the organized retail outlet.

 Pleasure in buying experience at organised retail outlets plays an important role in the reduction of the monthly purchase of household grocery (functional products in daily use) from the conventional Kirana stores.

 There is reduction in the monthly purchase value of the household items (grocery) from the conventional kirana stores due to the emergence of organised retail sector.

 The availability of the multiple brands at the organized retail outlet plays a major role in the reduction in the purchase value of the grocery from the conventional Kirana stores.

 The radical change in lifestyle is stimulating the purchase shift from the kirana stores to the modern (organised) retail outlets.                             

 General Observation:-

 Availability of multiple brands and one stop shopping are the major reasons for the preference of organized retail. Sales promotions are second major driver for organized retail .Even though people have a kirana store near their house, they prefer to do shopping from organized retail due to the aforementioned reasons .With increase in total expenditure the share of valet for kirana stores reduces. Pople have not  a strong preference for future change in their buying habits. As the disposable income increases the consumers tend to spend more time on hobbies and like spend time with their family more. Ancillary entertainment services like cinema halls, gaming zones play a vital part in making the organized retail shopping a more pleasurable experience.

 Recommendations:-

 
·        Kirana stores can sustain their absolute revenues by focusing on the following short term/quick fix factors:

A.     Increase the breath of products.

B.     Passing on more sales promotions to the customers.

C.      Provide home delivery service to the customers.

 

·        Since high income groups tend to have more hobbies and like to spend time with their families the most, kirana stores can subtly emphasis the home delivery option to enable them to spend more time with their family.

 

·        Organized retail outlets are perceived to be more modern i.e. perceived to be visited if you have to change with time hence kirana store owners need to change the perception by making their outlets more aesthetic.

 
·        Organized retail outlets are not convenient to the consumer in terms of vicinity to their homes; kirana stores can capitalize on this fact to increase their share of revenue from the consumers.

·        Organized retail outlets have increased spend done by consumers as their income increases. Kirana store lose out on the high spending consumers, they can reach out the customer by providing regular reminders by providing them pamphlets and promotional offers along with the message that they can make the delivery at the door step of the consumers.

 
·        There is a negative perception about freshness of fruits and vegetables in organized retail outlet due to which consumers tend to shop from other avenues for these. Retail outlets can provide a standee near such goods providing information about the received date so as to change the perception.

 
·        Kirana stores can start accepting other forms for payment i.e coupons and cards to increase the spending by the customers.

 
 

Tuesday, 11 December 2012

Relationship Marketing



Relationship Marketing

 

Studies of the marketing processes employed by both industrial and service firms seeking to optimize market performance have culminated in the emergence of a new school of thought, collectively known as “Relationship Marketing”.
                                                                                                                                 (Chaston, 2000)

The primary focus of relationship marketing is towards building closer relationship with customers as a strategy to overcome problems such as acquiring global competitive advantage, coping with rapidly changing technologies and reducing ‘time-to-market’ of new products.                                                                                                                 (Webster, 1992)

 RM (Relationship Marketing) consist of different dimensions ranging from tangible (monetary) to intangible (psychological) rewards awarded to consumer with the aim of motivating them to stay in a relationship.

 If we assume RM is single dimension then that is customer service, but it is not correct in this scenario.

RM is multidimensional, i.e., Customer service, Loyalty program, Customization, Personalization and Brand community.
 
  1. Customer service is the main dimension in managing and enhancing customer relationship. Superior customer services serves as a mode of differentiation that offers another advantage for the firm.
  2. Consumer who participated in a loyalty program might be more motivated by the program incentives to purchase specific brands repeatedly.
  3. Customization means manufacturing a product and delivering a service in response to a particular customer’s needs
  4. Personalization refers to the degree to which a firm or store or salesperson can personalize the relationship with a customer by communicating well.
  5. A brand community is a community formed on the basis of attachment to a product or marquee defined the concept as a specialised, non-geographically bound community, based on a structured set of social relations among admirers of a brand.

Monday, 19 November 2012

"Q" Score


"Q" Score:-

  • Developed in 1963 by Marketing Evaluation Inc., an American company
  • Q score is influenced by both people’s familiarity with the subject and their favourability towards it.
  • It is widely used for selecting the right celebrity endorser for brand advertisement.
  • The Q score answers the question “how appealing is the person among those who know him or her?”
  • First the respondents are asked to indicate two things- whether they seen or heard about the selected celebrity? Secondly, if yes , then  the respondents are asked to rate the celebrities on a scale that includes-
 
    1. One of my favourites, 2. Very good, 3. Good, 4. Fair, 5. Poor,
               6.      Never heard.
        Then after marketing companies suggest celebrity name to companies for brand  advertisement.
 

Tuesday, 13 November 2012

Variables which determine Corporate social responsibility(CSR) of individuals




                      CSR:-
 
·        The philosophy of Corporate Social Responsibility (CSR) is based on -- “Organizations should think beyond profit and wealth maximization”.

 
·         CSR activities are an integral part of Business strategy for long term business growth.

 
·        CSR practices in business differ from organization to organization.

 
·        Corporate performance is not only judged by financial metrics, but also by social and environmental measures.
 
 
                                   · The individual psychological variables may play an important role in influencing the individual’s attitudes towards CSR (Schlenker and Forsyth, 1977).


 ·       CSR in business is more driven by the personal beliefs and values of the people running the business (Vyakarnam et al.1997, Jenkins 2004)
 
                    CSR variables:- 

·        Individuals with high Machiavellianism employ aggressive, manipulative, exploitative and devious move to achieve personal or organizational objectives (Calhoon, 1969).

 
·        An individual with high extent of religiosity is likely to give more importance to  the societal needs and is likely to have positive CSR attitude (Weaver and Agle,2002).

 
·        Forsyth’s research (1992)  defined idealism as the degree to which a person has a genuine concern (universal moral principles) for others and for taking only those actions that avoid harm to others.

 
·        Richins and Dawson (1992) defined materialism as “a value that guides people’s choice in a variety of  situations, including, but not limited to, consumption arenas”.
 
·        The study of Giacalone and Jurkiewicz(2003)  indicated that spirituality is a significant predicator of individual perceptions of whether specified business practices were considered ethical or unethical.