This is not a project. These r some interesting articles on marketing and various aspects of marketing which could proove useful for all of us. Hope u all benefit from it.
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What is brand loyalty and why is it importent for a marketer
why focus on loyalty? Recent research conducted across industries by consultant Bain and Company indicates that a 5% increase in customer retention yields a 75% increase in customer Net Present Value (NPV). We also know from the pareto principle: 80-20 rule that 20% of your customers deliver 80% of your sales (not true in some cases though). Therefore, it is important that there is a loyalty reward program in your marketing plan.
However, there will be some people who will never agree with this. Especially those marketing science researchers and followers who widely believes that there is not much of loyalty in consumer behaviour. True indeed, however most of the marketing science researches are done on Business to Consumer (B2C) markets where majority of consumer spending are low and of low involvement products/services. Loyalty marketing is still important in most if not all Business to Business (B2B) markets as well as B2C markets with high spending and requires a high level of involvement.
Customer loyalty describes the tendency of a customer to choose one business or product over another for a particular need. In the packaged goods industry, customers may be described as being "brand loyal" because they tend to choose a certain brand of soap more often than others. Note the use of the word "choose" though; customer loyalty becomes evident when choices are made and actions taken by customers. Customers may express high satisfaction levels with a company in a survey, but satisfaction does not equal loyalty. Loyalty is demonstrated by the actions of the customer; customers can be very satisfied and still not be loyal.
Customer Loyalty has become a catch-all term for the end result of many marketing approaches where customer data is used. You can say Relationship Marketing or Database Marketing or Permission Marketing or CRM, and what you are really talking about is trying to increase customer loyalty - getting customers to choose to buy or visit more. Increased customer loyalty is the end result, the desired benefit of these programs. All of the above approaches have two elements in common - they increase both customer retention and the LifeTime Value of customers.
Customer loyalty is the result of well-managed customer retention programs; customers who are targeted by a retention program demonstrate higher loyalty to a business. All customer retention programs rely on communicating with customers, giving them encouragement to remain active and choosing to do business with a company.
You want customers to do something, to take action. You want them to visit your website, make a purchase, sign up for a newsletter. And once they do it for the first time, you want them to continue doing business with you, especially since you probably paid big money to get them to do business with you the first time. You don’t want to pay big money the second time. You want to create a "loyal" customer who engages in profitable behavior.
Customer data and models based on this data can tell you which customers are most likely to respond and become loyal, no matter what kind of front-end marketing program you are running or how you "wrap it up" and present it to the customer. The data will tell you who to promote to, and how to save precious marketing dollars in the process of creating customers who are loyal to you longer.
For example, let's say you look at your most loyal customers and find on average they buy or visit at least once every 30 days. So you begin tracking these customers, and discover 20% of them "skip" their 30 day activity. In addition, 90% of the 20% who skip never come back. You are watching the erosion of customer loyalty right before your eyes.
And it's too late to do anything about it, because they're already gone. You will waste a tremendous amount of money trying to get them back. You have to develop a way to identify high loyalty customers who are at risk, and take action before they leave you.
This is accomplished by using the data customers create through their interactions with you to build simple models or rules to follow. These models can be your early warning system, and will alert you to situations like the "30 day skip" example above in time for you to do something before the customer defects. Behavior models cause the data to speak to you about the loyalty status of the customer before it's too late.
why focus on loyalty? Recent research conducted across industries by consultant Bain and Company indicates that a 5% increase in customer retention yields a 75% increase in customer Net Present Value (NPV). We also know from the pareto principle: 80-20 rule that 20% of your customers deliver 80% of your sales (not true in some cases though). Therefore, it is important that there is a loyalty reward program in your marketing plan.
However, there will be some people who will never agree with this. Especially those marketing science researchers and followers who widely believes that there is not much of loyalty in consumer behaviour. True indeed, however most of the marketing science researches are done on Business to Consumer (B2C) markets where majority of consumer spending are low and of low involvement products/services. Loyalty marketing is still important in most if not all Business to Business (B2B) markets as well as B2C markets with high spending and requires a high level of involvement.
Customer loyalty describes the tendency of a customer to choose one business or product over another for a particular need. In the packaged goods industry, customers may be described as being "brand loyal" because they tend to choose a certain brand of soap more often than others. Note the use of the word "choose" though; customer loyalty becomes evident when choices are made and actions taken by customers. Customers may express high satisfaction levels with a company in a survey, but satisfaction does not equal loyalty. Loyalty is demonstrated by the actions of the customer; customers can be very satisfied and still not be loyal.
Customer Loyalty has become a catch-all term for the end result of many marketing approaches where customer data is used. You can say Relationship Marketing or Database Marketing or Permission Marketing or CRM, and what you are really talking about is trying to increase customer loyalty - getting customers to choose to buy or visit more. Increased customer loyalty is the end result, the desired benefit of these programs. All of the above approaches have two elements in common - they increase both customer retention and the LifeTime Value of customers.
Customer loyalty is the result of well-managed customer retention programs; customers who are targeted by a retention program demonstrate higher loyalty to a business. All customer retention programs rely on communicating with customers, giving them encouragement to remain active and choosing to do business with a company.
You want customers to do something, to take action. You want them to visit your website, make a purchase, sign up for a newsletter. And once they do it for the first time, you want them to continue doing business with you, especially since you probably paid big money to get them to do business with you the first time. You don’t want to pay big money the second time. You want to create a "loyal" customer who engages in profitable behavior.
Customer data and models based on this data can tell you which customers are most likely to respond and become loyal, no matter what kind of front-end marketing program you are running or how you "wrap it up" and present it to the customer. The data will tell you who to promote to, and how to save precious marketing dollars in the process of creating customers who are loyal to you longer.
For example, let's say you look at your most loyal customers and find on average they buy or visit at least once every 30 days. So you begin tracking these customers, and discover 20% of them "skip" their 30 day activity. In addition, 90% of the 20% who skip never come back. You are watching the erosion of customer loyalty right before your eyes.
And it's too late to do anything about it, because they're already gone. You will waste a tremendous amount of money trying to get them back. You have to develop a way to identify high loyalty customers who are at risk, and take action before they leave you.
This is accomplished by using the data customers create through their interactions with you to build simple models or rules to follow. These models can be your early warning system, and will alert you to situations like the "30 day skip" example above in time for you to do something before the customer defects. Behavior models cause the data to speak to you about the loyalty status of the customer before it's too late.
What is brand loyalty and why is it importent for a marketer
why focus on loyalty? Recent research conducted across industries by consultant Bain and Company indicates that a 5% increase in customer retention yields a 75% increase in customer Net Present Value (NPV). We also know from the pareto principle: 80-20 rule that 20% of your customers deliver 80% of your sales (not true in some cases though). Therefore, it is important that there is a loyalty reward program in your marketing plan.
However, there will be some people who will never agree with this. Especially those marketing science researchers and followers who widely believes that there is not much of loyalty in consumer behaviour. True indeed, however most of the marketing science researches are done on Business to Consumer (B2C) markets where majority of consumer spending are low and of low involvement products/services. Loyalty marketing is still important in most if not all Business to Business (B2B) markets as well as B2C markets with high spending and requires a high level of involvement.
Customer loyalty describes the tendency of a customer to choose one business or product over another for a particular need. In the packaged goods industry, customers may be described as being "brand loyal" because they tend to choose a certain brand of soap more often than others. Note the use of the word "choose" though; customer loyalty becomes evident when choices are made and actions taken by customers. Customers may express high satisfaction levels with a company in a survey, but satisfaction does not equal loyalty. Loyalty is demonstrated by the actions of the customer; customers can be very satisfied and still not be loyal.
Customer Loyalty has become a catch-all term for the end result of many marketing approaches where customer data is used. You can say Relationship Marketing or Database Marketing or Permission Marketing or CRM, and what you are really talking about is trying to increase customer loyalty - getting customers to choose to buy or visit more. Increased customer loyalty is the end result, the desired benefit of these programs. All of the above approaches have two elements in common - they increase both customer retention and the LifeTime Value of customers.
Customer loyalty is the result of well-managed customer retention programs; customers who are targeted by a retention program demonstrate higher loyalty to a business. All customer retention programs rely on communicating with customers, giving them encouragement to remain active and choosing to do business with a company.
You want customers to do something, to take action. You want them to visit your website, make a purchase, sign up for a newsletter. And once they do it for the first time, you want them to continue doing business with you, especially since you probably paid big money to get them to do business with you the first time. You don’t want to pay big money the second time. You want to create a "loyal" customer who engages in profitable behavior.
Customer data and models based on this data can tell you which customers are most likely to respond and become loyal, no matter what kind of front-end marketing program you are running or how you "wrap it up" and present it to the customer. The data will tell you who to promote to, and how to save precious marketing dollars in the process of creating customers who are loyal to you longer.
For example, let's say you look at your most loyal customers and find on average they buy or visit at least once every 30 days. So you begin tracking these customers, and discover 20% of them "skip" their 30 day activity. In addition, 90% of the 20% who skip never come back. You are watching the erosion of customer loyalty right before your eyes.
And it's too late to do anything about it, because they're already gone. You will waste a tremendous amount of money trying to get them back. You have to develop a way to identify high loyalty customers who are at risk, and take action before they leave you.
This is accomplished by using the data customers create through their interactions with you to build simple models or rules to follow. These models can be your early warning system, and will alert you to situations like the "30 day skip" example above in time for you to do something before the customer defects. Behavior models cause the data to speak to you about the loyalty status of the customer before it's too late.
why focus on loyalty? Recent research conducted across industries by consultant Bain and Company indicates that a 5% increase in customer retention yields a 75% increase in customer Net Present Value (NPV). We also know from the pareto principle: 80-20 rule that 20% of your customers deliver 80% of your sales (not true in some cases though). Therefore, it is important that there is a loyalty reward program in your marketing plan.
However, there will be some people who will never agree with this. Especially those marketing science researchers and followers who widely believes that there is not much of loyalty in consumer behaviour. True indeed, however most of the marketing science researches are done on Business to Consumer (B2C) markets where majority of consumer spending are low and of low involvement products/services. Loyalty marketing is still important in most if not all Business to Business (B2B) markets as well as B2C markets with high spending and requires a high level of involvement.
Customer loyalty describes the tendency of a customer to choose one business or product over another for a particular need. In the packaged goods industry, customers may be described as being "brand loyal" because they tend to choose a certain brand of soap more often than others. Note the use of the word "choose" though; customer loyalty becomes evident when choices are made and actions taken by customers. Customers may express high satisfaction levels with a company in a survey, but satisfaction does not equal loyalty. Loyalty is demonstrated by the actions of the customer; customers can be very satisfied and still not be loyal.
Customer Loyalty has become a catch-all term for the end result of many marketing approaches where customer data is used. You can say Relationship Marketing or Database Marketing or Permission Marketing or CRM, and what you are really talking about is trying to increase customer loyalty - getting customers to choose to buy or visit more. Increased customer loyalty is the end result, the desired benefit of these programs. All of the above approaches have two elements in common - they increase both customer retention and the LifeTime Value of customers.
Customer loyalty is the result of well-managed customer retention programs; customers who are targeted by a retention program demonstrate higher loyalty to a business. All customer retention programs rely on communicating with customers, giving them encouragement to remain active and choosing to do business with a company.
You want customers to do something, to take action. You want them to visit your website, make a purchase, sign up for a newsletter. And once they do it for the first time, you want them to continue doing business with you, especially since you probably paid big money to get them to do business with you the first time. You don’t want to pay big money the second time. You want to create a "loyal" customer who engages in profitable behavior.
Customer data and models based on this data can tell you which customers are most likely to respond and become loyal, no matter what kind of front-end marketing program you are running or how you "wrap it up" and present it to the customer. The data will tell you who to promote to, and how to save precious marketing dollars in the process of creating customers who are loyal to you longer.
For example, let's say you look at your most loyal customers and find on average they buy or visit at least once every 30 days. So you begin tracking these customers, and discover 20% of them "skip" their 30 day activity. In addition, 90% of the 20% who skip never come back. You are watching the erosion of customer loyalty right before your eyes.
And it's too late to do anything about it, because they're already gone. You will waste a tremendous amount of money trying to get them back. You have to develop a way to identify high loyalty customers who are at risk, and take action before they leave you.
This is accomplished by using the data customers create through their interactions with you to build simple models or rules to follow. These models can be your early warning system, and will alert you to situations like the "30 day skip" example above in time for you to do something before the customer defects. Behavior models cause the data to speak to you about the loyalty status of the customer before it's too late.
What is the Marketing Mix?
The Marketing Mix model (also known as the 4 P's) can be used by marketers as a tool to assist in defining the marketing strategy. Marketing managers use this method to attempt to generate the optimal response in the target market by blending 4 (or 5, or 7) variables in an optimal way. It is important to understand that the Marketing Mix principles are controllable variables. The Marketing Mix can be adjusted on a frequent basis to meet the changing needs of the target group and the other dynamics of the marketing environment.
Product
Historically, the thinking was: a good product will sell itself. However there are no bad products anymore in today's highly competitive markets. Plus there are many laws giving customers the right to send back products that he perceives as bad. Therefore the question on product has become: does the organization create what its intended customers want? Define the characteristics of your product or service that meets the needs of your customers.
includes Functionality; Quality; Appearance; Packaging; Brand; Service; Support; Warranty.
Price
How much are the intended customers willing to pay? Here we decide on a pricing strategy - do not let it just happen! Even if you decide not to ask (enough) money for a product or service, you must realize that this is a conscious decision and forms part of the pricing strategy. Although competing on price is as old as mankind, the consumer is often still sensitive for price discounts and special offers. Price has also an irrational side: something that is expensive must be good. Permanently competing on price is for many companies not a very sensible approach.
includes List Price; Discounts; Financing; Leasing Options; Allowances.
Place
Available at the right place, at the right time, in the right quantities? Some of the recent major changes in business have come about by changing Place. Think of the Internet and mobile telephones.
includes Locations; Logistics; Channel members; Channel Motivation; Market Coverage; Service Levels; Internet; Mobile.
Promotion
(How) are the chosen target groups informed or educated about the organization and its products? This includes all the weapons in the marketing armory - advertising, selling, sales promotions, Direct Marketing, Public Relations, etc. While the other three P's have lost much of their meanings in today's markets, Promotion has become the most important P to focus on.
includes Advertising; Public Relations; Message; Direct Sales; Sales; Media; Budget.
The function of the Marketing Mix is to help develop a package (mix) that will not only satisfy the needs of the customers within the target markets, but simultaneously to maximize the performance of the organization. There have been many attempts to increase the number of P's from 4 to 5P's in the Marketing Mix model. The most frequently mentioned one being People or Personnel. Booms and Bitner have suggested a 7-Ps approach for services-oriented companies.
The Marketing Mix model (also known as the 4 P's) can be used by marketers as a tool to assist in defining the marketing strategy. Marketing managers use this method to attempt to generate the optimal response in the target market by blending 4 (or 5, or 7) variables in an optimal way. It is important to understand that the Marketing Mix principles are controllable variables. The Marketing Mix can be adjusted on a frequent basis to meet the changing needs of the target group and the other dynamics of the marketing environment.
Product
Historically, the thinking was: a good product will sell itself. However there are no bad products anymore in today's highly competitive markets. Plus there are many laws giving customers the right to send back products that he perceives as bad. Therefore the question on product has become: does the organization create what its intended customers want? Define the characteristics of your product or service that meets the needs of your customers.
includes Functionality; Quality; Appearance; Packaging; Brand; Service; Support; Warranty.
Price
How much are the intended customers willing to pay? Here we decide on a pricing strategy - do not let it just happen! Even if you decide not to ask (enough) money for a product or service, you must realize that this is a conscious decision and forms part of the pricing strategy. Although competing on price is as old as mankind, the consumer is often still sensitive for price discounts and special offers. Price has also an irrational side: something that is expensive must be good. Permanently competing on price is for many companies not a very sensible approach.
includes List Price; Discounts; Financing; Leasing Options; Allowances.
Place
Available at the right place, at the right time, in the right quantities? Some of the recent major changes in business have come about by changing Place. Think of the Internet and mobile telephones.
includes Locations; Logistics; Channel members; Channel Motivation; Market Coverage; Service Levels; Internet; Mobile.
Promotion
(How) are the chosen target groups informed or educated about the organization and its products? This includes all the weapons in the marketing armory - advertising, selling, sales promotions, Direct Marketing, Public Relations, etc. While the other three P's have lost much of their meanings in today's markets, Promotion has become the most important P to focus on.
includes Advertising; Public Relations; Message; Direct Sales; Sales; Media; Budget.
The function of the Marketing Mix is to help develop a package (mix) that will not only satisfy the needs of the customers within the target markets, but simultaneously to maximize the performance of the organization. There have been many attempts to increase the number of P's from 4 to 5P's in the Marketing Mix model. The most frequently mentioned one being People or Personnel. Booms and Bitner have suggested a 7-Ps approach for services-oriented companies.
PEST analysis
The PEST analysis is a framework that strategy consultants use to scan the external macro-environment in which a firm operates. PEST is an acronym for the following factors:
• Political
• Economic
• Social
• Technological
PEST factors play an important role in the value creation opportunities of a strategy. However they are usually outside the control of the corporation and must normally be considered as either threats or opportunities. Remember macro-economical factors can differ per continent, country or even region, so normally a PEST analysis should be performed per country.
Political (incl. Legal) factor examples :
Environmental regulations and protection, Tax policies, International trade regulations and restrictions, Contract enforcement law, Consumer protection
Employment laws, Government organization / attitude , Competition regulation
Political Stability, Safety regulations
Economic factor examples :
Economic growth, Interest rates & monetary policies, Government spending
Unemployment policy, Taxation, Exchange rates, Inflation rates, Stage of the business cycle, Consumer confidence
Social factor examples :
Income distribution, Demographics, Population growth rates, Age distribution
Labor / social mobility, Lifestyle changes, Work/career and leisure attitudes
Entrepreneurial spirit, Education, Fashion, hypes, Health consciousness & welfare, feelings on safety, Living conditions
Technological factor examples :
Government research spending, Industry focus on technological effort, New inventions and development, Rate of technology transfer , Life cycle and speed of technological obsolescence , Energy use and costs, (Changes in) Information Technology, (Changes in) Internet , (Changes in) Mobile Technology
Completing a PEST Analysis is relatively simple, and can be done via workshops using brainstorming techniques. Usage of PEST analysis can vary from: company and strategic planning, marketing planning, business and product development, and research reports.
The PEST analysis is a framework that strategy consultants use to scan the external macro-environment in which a firm operates. PEST is an acronym for the following factors:
• Political
• Economic
• Social
• Technological
PEST factors play an important role in the value creation opportunities of a strategy. However they are usually outside the control of the corporation and must normally be considered as either threats or opportunities. Remember macro-economical factors can differ per continent, country or even region, so normally a PEST analysis should be performed per country.
Political (incl. Legal) factor examples :
Environmental regulations and protection, Tax policies, International trade regulations and restrictions, Contract enforcement law, Consumer protection
Employment laws, Government organization / attitude , Competition regulation
Political Stability, Safety regulations
Economic factor examples :
Economic growth, Interest rates & monetary policies, Government spending
Unemployment policy, Taxation, Exchange rates, Inflation rates, Stage of the business cycle, Consumer confidence
Social factor examples :
Income distribution, Demographics, Population growth rates, Age distribution
Labor / social mobility, Lifestyle changes, Work/career and leisure attitudes
Entrepreneurial spirit, Education, Fashion, hypes, Health consciousness & welfare, feelings on safety, Living conditions
Technological factor examples :
Government research spending, Industry focus on technological effort, New inventions and development, Rate of technology transfer , Life cycle and speed of technological obsolescence , Energy use and costs, (Changes in) Information Technology, (Changes in) Internet , (Changes in) Mobile Technology
Completing a PEST Analysis is relatively simple, and can be done via workshops using brainstorming techniques. Usage of PEST analysis can vary from: company and strategic planning, marketing planning, business and product development, and research reports.
kaustubh12
New member
can u plzz find me a article on rural marketing..plzz