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.