Month: June 2013

Word of Mouth

Consumers are mostly influenced by opinions that are expressed directly to them. Nowadays the marketers spend millions of money on various advertising campaigns however what really persuades a consumer to make up their mind is a free and simple source i.e. by a word of mouth recommendation. It’s through the Word Of Mouth Marketing that results in 20 to 50 percent of all purchasing decisions. It creates a greater influence when consumers are purchasing a product for the first time or when the product is really expensive or if there are certain factors of the product that requires a lot of research and opinions. The influence of Word Of Mouth Marketing is constantly growing; the digital world has revolutionized and has accelerated to a point where word of mouth does not stand as a one on one communication alone. It also operates as one too many communication bases such as: product reviews are posted online on the internet, opinions get scattered through social networks and some consumers express their opinions about the brands by creating blogs on their websites. As online communication has increased in size, number and character marketers have now realized the importance of Word Of Mouth marketing. When assessing how word of mouth impacts the marketing, following are some factors that must be taken seriously such as: 1- What’s being communicated to the target audience: In...

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Consumerism

When you think of bringing sustainability into the marketing industry, one gets skeptical about how it can serve to bring value to the main cause. Usually a common perception is associated with marketing by the term”GREEN WASH” which portrays a light image of the corporate sector instead of undertaking the corrective measures to overcome the pressing issues concerned with the business behind the scenes. Consumerism is now considered to be another catchphrase for this present modern era; it’s basically represents the mindset that advocates the real purchase of goods and services that is increasing with time. Although this term is quite new among the masses but it’s being put into practice by the ruling class of the ancient civilization. The elite class was occupied in the overindulgence of food, clothing and various other luxury items. By the late 1990s, consumerism had been advocated by the most modern societies .Since consumption of goods and services is a component of GNP which the government would want to keep at an increasing level. Therefore, the concept of Consumerism is mostly prevalent in a modern society, who aspires to have more luxurious possessions and that’s how the smart marketers take advantage of Consumerism to increase their sales. The question is whether the marketers are able to cause such swirl on the consumers to create a massive demand for their products and services? And...

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Strategic Intent Hamel and Prahalad

Gary Hamel, a lecturer at London Business School and C.K Prahalad who’s a professor at University of Michigan wrote an article named; Strategic Intent which indicates out a new force came in the field of management. The article got published in the Harvard Business Review in 1989 and since then it had been very popular. The article basically illustrates the points that to achieve success a company needs to connect its end to its mean through Strategic intent. Following are its three attributes namely: 1-Sense of Direction: It states that a company must set long term goals and targets which can guide them into which direction they need to head onto in the long run. 2-Sense of Discovery: This implies that a company must have a competitive advantage and must possess the potential to seek new discoveries. 3- Sense of Destiny: A sense of destiny also matter as it plays a major role in the success or failure of a company. The strategic intent also involves three steps such as: 1- Setting up of the Strategic Intent: The above mentioned attributes are under this step. 2- Setting up of the Challenges: The correct identification of the challenges that need to be undertaken by the company and how well it’s going to be communicated to the whole company as this leads to increase the performance level. 3- Employee Empowerment: The...

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ERG Theory Alderfer

The ERG theory was developed by an organizational behavior scholar named, Clayton Alderfer. This theory has classified the human needs into three groups: Existence, Relatedness and Growth. The Existence need corresponds to the Maslow’s physiological and safety needs. Relatedness need is referred to the Maslow’s belongingness need while the Growth need is referred to the Maslow’s Esteems and Self-actualization needs. Alderfer has reworked on Maslow’s hierarchy theory based on the fact that the human needs can be operative more than one at a time. It doesn’t demonstrate on the fact that a lower need has to be satisfied in order to move on to another need. The ERG theory also deal on the Frustration –regression principle which is worked as if a high order need is frustrated, then an individual needs to satisfy the lower order need. The theory believes as a person starts to satisfy its higher needs, they become more intense with time. For instance, the power you acquire makes you to get a hold on more power just similar to an addiction. The ERG Theory has simplified the question of how to motivate a person to act? Let’s now take a close look to the needs: 1- Existence: The lower level of need is to stay alive and safe. When our existence needs are satisfied we feel more physically comfortable. This exactly relates to the Maslow’s...

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Service Inseparability

Service inseparability is considered as an important property that basically states that the services are produced and consumed at the same time period but cannot be separated from their providers or manufacturers. Providers can be a machine or people along with that it is also assumed that both the consumer as well as the provider equally affect the outcome of the service. As it means that services that are provided to the customers cannot be separated or dispatched from the service provider (Esther, 2005). The employees of the organizations become the part of the service if in a case that he performs such services. It is must that for the inseparability of the service there is the physical presence of the consumers. As there is a fact that services are produced and consumed in the same manner so in case of physical goods, they are manufactured and then distributed to various retailers and whole sellers which are consumed later on. But in the case of the services, they cannot be separated from the provider of the service so the service providers then become the part of the service. It is mainly one of the most important characteristics of the service which is also be called as simultaneity and is specifically used in marketing terms in order to describe a key quality services that differentiate them from the goods or...

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Promotional Allowance

Promotion allowance involves the factors that are required to familiar the product with customers. Advertisement and promotional programs are the examples of promotion. Advertisement is the most important tool which is an option to make the product available for customers (Srinivasan, Pauwels, Hanssens & Dekimpe, 2004). Promotion is most important part for the sale of the product as it provides awareness to the customers. According to Boykin, promotional allowances are the reductions in the prices of the product that is offered by the suppliers to their trade partners to carry out the additional promotional activities as in support of their products.  Promotional allowances are actually the payments that are given to the retailers by the suppliers in order to promote their products. These allowances have been in the industry since the early 20th century. Firstly these allowances were put in the pace by the Warner Brothers in order to provide additional incentives to the retailers for their additional advertising efforts. Marketers generally agree upon the fact that support of the strong trade partners is very essential while establishing the critical and appropriate link between the shoppers and products when the buying decisions are to be made. To boost the morale and for encouragement, suppliers provides promotional allowances to their trade partners so that they conduct various varieties of promotional actives in their part (Kaikati & Kaikati, 2006).  In the...

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Indirect Marketing

What is Indirect Marketing? Indirect marketing is the distribution of various products through channel which includes one or more than one seller. It is a way for a business to market their products, services or idea without using any appropriate method or direct marketing or advertising (Lopez, 2004). The main purpose behind indirect marketing is that instead of sending message directly to the targeted market; send some friend requests or any vote or some any other way to grasp the attention of the market. The channel in which there is no direct communication with the customers is involved by the respected companies is called as indirect marketing. It is generally taken as the step towards brand recognition and awareness. When the customers have the awareness of the product and the only requirement is to remind them about the product then indirect marketing will be used. In this sort of marketing no segmentation and target marketing is required. The symbolic presentation is provided to the customers without any sort of discrimination between them (Gropp, R., Vesala, J & Vulpes, G, 2004). The issue with this type of marketing is that sudden response of the customers is not recorded but for recording the response in future, questionnaires are used. In German speaking countries, indirect marketing is taken as a way to improve the critical factors of a business. It is a...

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