Category: Marketing Management

  • What does Go Green or Environmental Marketing mean in the Firms?

    What does Go Green or Environmental Marketing mean in the Firms?

    Why do Firms Go Green? Green or Environmental Marketing consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with a minimal detrimental impact on the natural environment. What does Go Green or Environmental Marketing mean in the Firms? According to the American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe. What does Employees Stock Option mean? with Motivating Employees.

    Why businesses should consider investing their time and money in green marketing or go green?

    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.

    Environmental issues have gained importance in business as well as in public life throughout the world. It is not like that a few leaders of different countries or few big renowned business houses are concerned about the day to day deterioration of oxygen level in our atmosphere but every common citizen of our country and the world is concerned about this common threat of global warming.

    So in this scenario of global concern, corporate houses have taken green-marketing as a part of their strategy to promote products by employing environmental claims either about their attributes or about the systems, policies, and processes of the firms that manufacture or sell them. Clearly, green marketing is part and parcel of overall corporate strategy; along with manipulating the traditional marketing mix (product, price, promotion, and place), it requires an understanding of public policy process.

    So we can say green marketing covers a broad range of activities. Firms use green marketing in an attempt to address cost or profit related issues. In implementing green marketing, consumers, corporate and the government play a very important role. But there are few constraints in implementing it like lack of consumer awareness, financial constraints, limited scientific knowledge, lack of stringent rules and competitive pressures.

    Green marketing involves developing and promoting products and Services that satisfy your customer wants and needs for quality, performance, affordable pricing and convenience without having a detrimental impact on the environment.

    Why are there good business go green today?

    Firms may choose to green their systems, policies, and products due to economic and non-economic pressures from their consumers, business partners, regulators, citizen groups and other stakeholders(non-market environment).

    Here are some other reasons may include:

    Now a day’s firms are becoming more concerned about their social responsibilities:

    They have taken social responsibilities as a good strategic move to build up an image in the heart of consumers. Even the socially responsible firms are getting leverage, whenever they intend to enter into foreign countries.

    There are example of firms like ITC, HUL who are heavily promoting them as an environmentally concerned firms, whereas there is example of firms who are working in this direction in a silence manner like Coca-Cola, who have invested crores of money in various recycling activities, as well as having modified their packaging to minimize its environmental impact.

    While being concerned about the environment coke has not used their concern as a marketing tool. Another big organization who is also working in this field without claiming any credit is Walt Disney World (WDW).

    So we can see that firms in this situation have taken two perspectives:

    • They are using green marketing as a marketing tool.
    • They are working in this field without promoting the fact.

    Competitive pressure:

    Competition is an integral part of the business, and you cannot overlook any competitive action taken by your competitor. So to be in the market you have to have a vigil over your competitors move for marketing its products.

    Some firms have taken green-marketing as a strategy to build up its image rather than inculcate it as a part of the policy and work silence. In some instances, this competitive pressure has caused an entire industry to modify and thus reduce its detrimental environmental behavior.

    Governmental pressure:

    In all most all civilized countries Govt. has the law to protect the consumers and the environment from the harmful goods or by-products and ensure through a law that all types of consumers have the ability to evaluate the environmental composition of goods.

    Govt. established several regulations to control the hazardous waste produced by firms and many by-products of production is controlled through the issuing of various environmental licenses, thus shaping the behavior of organization towards more socially responsible one.

    Some scholar claims that Green policies/products are profitable:

    Green policies can reduce costs; green firms can shape future regulations and reap the first-mover advantage.

    Change in customers attitude:

    With increasing concern about the environment, consumers attitude towards firms having green policies or green products is becoming a motivating factor.

    Cost or profit issue:

    Firms may also use green marketing in an attempt to address cost or profit related issues. Disposing of environmentally harmful byproducts, such as polychlorinated biphenyl (PCB) contaminated oil are becoming increasingly costly and in some cases difficult. Therefore firms that can reduce harmful wastes may incur substantial cost savings. When attempting to minimize waste, firms are often forced to re-examine their production processes.

    In these cases, they often develop more efficient production processes that not only reduce waste but reduce the need for some raw materials. This serves as a double cost saving since both waste and raw material are reduced. In other cases firms attempt to find end–of–pipe solutions, instead of minimizing waste.

    In these situations, firms try to find markets or use for their waste materials, where one firm’s waste becomes another firm’s input of production. One Australian example of this is a firm who produces acidic waste water as a by-product of production and sells it to a firm involved in neutralizing base materials.

    What does Go Green or Environmental Marketing mean in the Firms
    What does Go Green or Environmental Marketing mean in the Firms? #Pixabay.

    #The benefits of Green Marketing (Go Green):

    Environmental responsibility has been added to the corporate agenda in the 21st century. Businesses are held accountable by both the government and society to operate in environmentally friendly ways. Green marketing is used by companies to communicate a brand’s emphasis on business practices or products that are beneficial for the environment. Here are explain by Bizfluent; What Are the Benefits of Green Marketing?

    Product Opportunities:

    Growing consumer awareness and interest in preserving and utilizing natural resources has contributed to an influx in sales and marketing of environmentally friendly and reusable products. “Organic” has become a keyword in marketing.

    Sales of organic products reached $26.6 billion in 2009, according to Barbara Haumann in her April 2010 report for the Organic Trade Association. $24.8 billion was generated from organic food sales and an additional $1.8 billion was realized through non-food organic products.

    Enhanced Environmental Awareness:

    The Encyclopedia of Business (2nd Edition) pointed out that a benefit that resonates with industry and consumers alike is the expansion of environmental awareness. As companies market their green-friendly efforts and products, they simultaneously encourage the green initiative. This perpetuates the efforts by other companies to operate with more green responsibility and causes consumers to remain vigilant in holding companies accountable for their actions.

    Premium Prices:

    Keeping up with environmental expectations can be expensive for a company. Preserving rain forests, recycling, reducing waste and other green-friendly actions take time, resources and concerted effort.

    A benefit of green marketing expansion is that consumers may become more comfortable and accepting of paying higher premium prices to acquire earth-friendly products or to support companies that engage in green activities. The Encyclopedia of Business acknowledges that it is a crucial task of marketers to get customers to take on these premium prices.

    Supplier Expansion:

    In Go Green, A challenge faced by early adopters of the environmental movement was the limited supply of earth-friendly food and non-food products. Companies that initially sold organic foods faced high prices due to a limited number of organic farmers and suppliers.

    However, Haumann notes in her report “farmer’s markets, co-ops, and CSA (community-supported agriculture) operations gained a lot of interest as consumers increasingly look for locally and regionally produced organic foods.” Grocery retailers also benefit from stronger local supplies of organic food products.

  • Marketing Research Objectives, Advantages, and Limitations

    Marketing Research Objectives, Advantages, and Limitations

    What does Marketing Research mean? Define Marketing Research; “The systematic, objective and exhaustive search for the study of the facts relevant to any problem in the field of marketing.” You’ll understand Marketing Research and their best topics – Objectives, Advantages, and Limitations. Marketing research may describe as a method of getting facts to use by the executive in formulating policies and plans.

    The Concept of Marketing Research explains by its Objectives, Advantages, and Limitations.

    It can also be defined as the systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services. It’s a systematic search for information. It involves data collection, analysis, and interpretation. Research cannot draw decisions, but it helps marketers in the task of decision making.

    A successful executive will never depend upon guesswork. He looks for more accurate information through research. The main idea of marketing research is to know more about consumers, dealers, and products. As the business grows, the distance between the manufacturer and consumers also widens.

    The management depends upon marketing research as a tool in solving marketing problems. It helps in taking a fruitful and efficient decision as to the flow of goods and services in the hands of the customers.

    What is Market Research?

    Market research is an important element of the process of marketing research. They include a complete analysis of the market. Information regarding the nature, size, organization profitability of different markets, changes in markets and various factors-economic, social and political-affecting those changes are studied vigorously. The main purpose of market research is to know about the consumers and the markets of its products or services.

    This article has given a solution to understanding; Advantages and Limitations of Marketing Research, or Objectives and Limitations of Marketing Research, or Objectives and Advantages of Marketing Research.

    Objectives of Marketing Research:

    Marketing research is undertaken for attaining the following objectives:

    To Provide the Basis For Proper Planning: 

    Marketing and sales forecast research provides a sound basis for the formulation of all marketing plans, policies, programs, and procedures.

    To Reduce Marketing Costs: 

    They provide ways and means to reduce marketing costs like selling, advertisement, and distribution, etc.

    To Find Out New Markets for The Product: 

    Their aims at exploring new markets for the product and maintaining the existing ones.

    To Determine the Proper Price Policy:

    It is considered helpful in the formulation of proper price policy about the products.

    To Study in Detail Likes and Dislikes of the Consumers: 

    It tries to find out what the consumers, (the people of all genders who constitute the market) think and want. It keeps us in touch with the consumers, minds and to study their likes and dislikes.

    To Know The Market Competition: 

    They also aim at knowing the quantum of competition prevalent in the market about the product in question. The company may need reliable information about competitor’s moves and strategies which are of immense significance for further planning.

    To Study The External Forces and Their Impact: 

    They provide valuable information by studying the impact of external forces on the organization. External forces may include conditions developing in foreign markets, govt, policies and regulations, consumer incomes and spending habits, new products entering the market and their impact on the company’s products. External forces may include conditions developing in foreign markets, govt, policies and regulations, consumer incomes and spending habits, new products entering the market and their impact on the company’s products.

    Prof. Gilies has rightly pointed out that,

    “The basic objective of marketing research is to supply management with information which will lead to a fuller understanding of the distribution habits and attitudes of present and potential buyers and users, and their reactions to products, packing, selling and advertising methods.”

    Advantages of Marketing research:

    The following advantages of marketing research below are:

    Explains customer resistance:

    Research is useful for finding out customer resistance to the company’s products. Remedial measures are also suggested by the researcher to deal with the situation. This makes the product and marketing policies agreeable to consumers.

    Suggests sales promotion techniques

    Promotion Research; enables a manufacturer to introduce appropriate sales promotion techniques, select the most convenient channel of distribution, suitable pricing policy for the products and provision of discounts and concessions to dealers. They facilitate sales promotion.

    Offers guidance to marketing executives:

    To research, offers information and guidance to marketing executives while framing marketing policies. Continuous research enables a company to face adverse marketing situation boldly. It acts as an insurance against possible changes in the market environment.

    Facilitates the selection and training of the sales force:

    It is useful for the selection and training of staff in the sales organization. It also suggests the incentives which should be offered for the motivation of employees concerned with marketing.

    Promotes business activities:

    They enable a business unit to grow its activities. It creates goodwill in the market and also enables a business unit to earn high profits through consumer-oriented marketing policies and programs.

    Facilitates appraisal of marketing policies:

    Research activities enable business executives to have an appraisal of the present marketing policies in the light of findings of research work. Suitable adjustments in the policies are also possible as per the suggestions made by the researchers.

    Suggests new marketing opportunities:

    Research, suggests new marketing opportunities and how they can be exploited fully. It identifies emerging market opportunities.

    Facilitates inventory study:

    It is useful for the evaluation of the company’s inventory policies and also for the introduction of more efficient ways of managing inventories including finished goods and raw material.

    Provides marketing information:

    Research provides information on various aspects of marketing. It suggests the relative strengths and weaknesses of the company. Based on such information, marketing executives find it easy to frame policies for the future period. MR provides information, guidance and alternative solutions to current marketing problems.

    Provides information on product acceptance:

    They help in knowing the probability of acceptance of the product in its present form. It is also useful for the introduction of modifications in the existing product line of a firm.

    Creates a progressive outlook:

    Research generates progressive and dynamic outlook throughout the business organization. It promotes systematic thinking and a sense of professionalization within the company. It also creates enthusiasm among marketing executives. This brings success and stability to the whole business unit.

    Has wider social significance:

    Research is of paramount importance from the social angle. It is how the ultimate consumer becomes king of the market place, with his desires, prejudice and every whim transmitted to the producer and distributor. In brief, MR has a wider scope of significance. It is useful to all parties involved in the process of marketing.

    Limitations of Marketing Research:

    Now let’s discuss above listed limitations of marketing research.

    Limited scope:

    They solve many business-related problems. However, it cannot solve all business problems. It cannot solve problems related to consumer behavior, income and expenditure relationships, etc. Thus, its scope is limited.

    Costly in the Market:

    It is a costly affair. It needs a lot of money to conduct various market research activities. Huge funds are required to pay salaries, prepare questionnaires, conduct surveys, prepare reports, etc. It is not a viable choice for small businesses. It is suitable only for large companies who can afford its cost.

    Provides suggestions and not solutions:

    They provide data to the marketing manager. It guides and advises him. It also helps him to solve marketing problems. However, it does not solve the marketing problem. The marketing manager solves marketing problems. So, MR only provides suggestions. It does not provide solutions.

    Time-consuming:

    It is a lengthy and time-consuming process. This process involves many important steps. All these steps are crucial and not even a single step can be neglected or avoided. In other words, there are no short-cuts in MR. Generally, it takes at least three to six months to solve a marketing problem. Therefore, it cannot be used in urgent or emergencies.

    Limited practical value:

    They only an academic exercise. It is mainly based on a hypothetical approach. It gives theoretical solutions, it does not give real solutions to real-life problems. Its solutions look good on paper but are harder to implement in a real sense. Thus, it has limited practical value.

    Can’t predict consumer behavior:

    They collect data on consumer behavior. However, this data is not accurate because consumer behavior cannot be predicted. It keeps on changing according to the time and moods of the consumers. Consumer behavior is also very complex. It is influenced by social, religious, family, economic and other factors. It is very difficult to study these factors.

    No accurate results:

    It is not a physical science like physics, chemistry, biology, etc. They are also social science. It studies consumer behavior and marketing environment. These factors are very unpredictable. Therefore, it does not give accurate results. It gives results, but it cannot give 100% correct results.

    Non-availability of technical staff:

    It is done by researchers. The researchers must be highly qualified and experienced. They must also be hard-working, patient and honest. However, in India, it is very difficult to find good researchers. Generally, it is done by non-experienced and non-technical people. Therefore, MR becomes a costly, time-consuming and unreliable affair. So, its quality is also affected due to the non-availability of technical staff.

    Can be misused:

    Sometimes, marketing research is misused by the company. It is used to delay decisions, it is used to support the views of a particular individual. Also, used to grab power (managerial) in the company.

    Non-availability of reliable data:

    The quality of the marketing research report depends on the quality of the collected data. If the data is complete, up-to-date and reliable, then the MR report will also be reliable. However, in India, it is very difficult to get full, latest and trustworthy data. So, the non-availability of reliable data is also its limitation.

    The resistance of marketing managers:

    The marketing managers do not use the suggestions given in the marketing research report. Primarily, they feel that these suggestions are not practical. Secondly, they also feel that their importance will become less if they use these suggestions. There is a conflict between marketing managers and researchers.

    Fragmented approach:

    They study a problem only from a particular angle. Also, it does not consider an overall view. There are many causes of a marketing problem. It does not study all causes. It only studies one or two causes.

    For example, if there is a problem with falling sales. There are many causes for falling sales; like poor quality, high-price, competition, recession, consumer resistance, etc. It will only study two causes viz; low-quality and high price. It will not study other causes. So, it is not a reliable one.

  • Marketing Planning: Concept, Characteristics, and Importance

    Marketing Planning: Concept, Characteristics, and Importance

    Marketing Planning – Market defines the role and responsibilities of marketing executives in such a way as to achieve the goals of the firm. Its Concept, Characteristics, and Importance, with Meaning and Definition of Marketing Planning. A marketing plan may be part of an overall business plan. A solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, without a sound strategic foundation, it is of little use to a business. Mostly, confusion of the question; What is the Difference Between Marketing and Selling? Read and share the given article in Hindi.

    Explain Market or Marketing Planning: Concept, Meaning, Definition, Characteristics, and Importance!

    Explanation of Market or Marketing Planning and its Concept, Characteristics, and Importance. Its planning involves objectives and plans with a 2-5 year time horizon and is thus further from the day-to-day activity of implementation. Because of their broader nature and longer-term impact, plans are typically developed by a combination of higher-level line managers and staff specialists. If the specialists take over the process, it loses the commitment and expertise of the line managers who are responsible for carrying out the plan.

    The planning process is probably more important than the final planning document. Also, Integrated Marketing Communications (IMC), the process ensures that a realistic, sensible, consistent document is produced and leads to important organizational learning and development in its own right.

    The concept of Market or Marketing Planning:

    A business firm has to make various marketing decisions. These decisions actually emerge from the complex interaction of a large number of persons carrying out diverse responsibilities in the marketing organization. Being part and parcel of the overall management, the marketing executives are deeply involved in the process of planning.

    It emphasizes the allocation of marketing resources in the best and most economical way. It gives an intelligent direction for marketing operations. Also, It involves the preparation of policies, programmes, budgets etc., in advance for carrying out the various activities and functions of marketing to attain the marketing goals.

    According to the American Marketing Association,

    “Marketing planning is the work of setting up objectives for marketing activity and of determining and scheduling the steps necessary to achieve such objectives.”

    Also, Planning is the first management function to be performed in the process of management. It governs the survival, growth, and prosperity of any enterprise in a competitive and ever-changing environment.

    The connecting link of markets to marketing is the process and the function of marketing management. Also, Marketing management is the blending factor of markets and marketing. Today the consumer is a complicated, emotional, and confused individual. His buying is based on subjectivity and not often backed by objectivity.

    The introduction of innumerable brands of toilet soaps, talcum powders is examples. Planning precedes activity in any purposeful endeavor. Also, Business firms naturally undertake a good deal of planning. Business firms have to master the environment and score over their competitors. Thus in the case of a business firm, planning is always strategic in character.

    A firm cannot afford to travel randomly, it has to travel with the support of a route map. Every company must look ahead and determine where it wants to go and how to get there. Its future should not be left to chance. To meet this need, companies use two systems a strategic planning system and a marketing planning system.

    Strategic Planning;

    Strategic planning provides the route map for the firm. Its planning serves as a hedge against risk and uncertainty. Strategic planning is a stream of decisions and actions which lead to effective strategies and which in turn help the firm to achieve its objectives. Also, The strategy is not something that can take out of one’s pocket and pushed into the market all of a sudden.

    “No magic formula exists to prepare for the future. The requirements are an excellent insight to understand changing consumer needs, clear planning to focus our efforts on meeting those needs, and flexibility because change is the only constant. Most important, we must always offer consumers-products of quality and value, for this is the one need that will not change.”

    Marketing has been described as the railway engine which pulls all the other departmental carriages along. Also, It is the interface between the enterprise and its market.

    We had explained that marketing places the consumer at both the beginning and the end of the business process. Any firm practicing marketing in the proper sense has to identify correctly the needs of the consumer, translate the needs into suitable products and services, deliver those products and services to the total satisfaction of the consumer and through the process generate profits for the firm.

    Meaning and Definition of Market or Marketing Planning:

    It is a comprehensive blueprint that outlines an organization’s overall marketing efforts. Also, It typically results in a marketing strategy that can use to increase sales for the business producing it.

    The definition of marketing planning as given by some prominent scholars has been given below:

    Stephen Morse:

    “Marketing planning is concerned with the identification of resources that are available and their allocation to meet specified objectives.”

    Based on the above definitions, marketing planning is the road map of an organization for selecting a target market and then satisfying the consumers. Also, It is a continuous process in which the marketing objectives of an enterprise decide and marketing programs, policies, and procedures determine the performance of different marketing activities like marketing research, sales forecasting, product planning and development, pricing, advertisement, and sales promotion, physical distribution, and after-sale services, etc.

    Characteristics of Market or Marketing Planning:

    Marketing planning has the following characteristic features:

    • The success depends to a large extent upon human behavior and response.
    • They complicate in nature.
    • Marketing decisions have long-term effects on the efficiency, profitability, and market standing of the firm.
    • It is a formal and systematic approach towards the planning of all marketing activities-product positioning, price setting, distribution channels, etc.
    • Market planning, as a rational activity, requires thinking; imagination, and foresight. Market analysis, market projection, consumer behavior analysis, and marketing-guided conclusions are based on data and measurements drawn from internal and external environments.
    • Also, It is a forward-looking and dynamic process designed to promote market-oriented or consumer-oriented business actions.
    • Planning is concerned with two things: (i) Avoiding incorrect actions, and (ii) Reducing the frequency of failure to exploit opportunities. Thus, marketing planning has both an optimistic and pessimistic component.
    • Marketing planning is done by the marketing department. Various subdivisions and sections under the department give their proposals based on which the overall company marketing plans develop and design.
    • Planning is a process of deciding in advance what to do and how to do it. If the marketing planner desires to achieve a target market at some future date and if he needs some time to decide what to do and how to do it, he must make the necessary marketing decisions before taking action.
    • Planning is basically a decision-making process. Also, Marketing planning is a program of marketing-based actions regarding the future with the object of minimizing risk and uncertainty and producing a set of interrelated decisions.

    What do they mean?

    It is the preface to any business enterprise. Also, Planning is deciding at present as to what we are going to do in the future. It involves rot only anticipating the consequences of decisions but also predict the events that are likely to affect the business.

    It is to direct the company marketing efforts and resources towards present marketing objectives like growth, survival, minimizing risks, maintain status-quo, profit maximization, service to customers, diversification, and image building and so on.

    “Marketing plan” is the instrument to implement the marketing concept; it is one that links the firm and the markets; it is the foundation for all corporate plans and planning.

    The marketing plan is the document of the future course of action that spells out how the resources at the command of the firm are to deploy to achieve the marketing goals. Simply stated, It is a written document that specifies in detail the firm’s marketing objectives and how marketing management will use controllable marketing tools such as product design, channels, promotion, and pricing to achieve these objectives.

    It is the central instrument for directing and coordinating marketing efforts. It is to do with selling objectives and designing strategies and programs for achieving these objectives of marketing. Also, They are a blueprint for marketing action. It is a written document containing strategies to achieve preset goals.

    Marketing Planning Concept Characteristics and Importance
    Marketing Planning: Concept, Characteristics, and Importance, #Pixabay.

    Importance of Market or Marketing Planning:

    It is a systematic and disciplined exercise to formulate marketing strategies. Marketing planning can be related to the organization as a whole or SBU (strategic business units).

    Market planning is a forward-looking exercise; which determines the future strategies of an organization with special reference to its product development, market development, channel design, sales promotion, and profitability.

    We may now summaries the importance of marketing planning in the following points:

    • It helps in avoiding future uncertainties.
    • Also, It helps in management by objectives.
    • They help in achieving objectives.
    • It helps in coordination and communication among the departments.
    • It helps in control.
    • Also, They help the customers in getting satisfaction.

    Minimize future uncertainties:

    To minimize future uncertainties, an expert marketing manager makes future marketing strategies and programs based on present trends and conditions of the firm.

    By effective market planning and future forecasting, he not only minimizes future uncertainty; but, also successfully fulfills the objectives of the firm.

    Clarification of Objectives:

    The clear-cut objective of the organization helps in keeping the efforts of the management in proper lines. These are very useful in formulating the managerial functions like organizing, directing and controlling.

    Proper marketing planning and decision-making help in determining the objectives of the organization.

    Better Coordination:

    The marketing planning helps in coordinating all the managerial activities of the firm. It not only helps in coordinating the work of its own department but also helps in coordinating the managerial activities of all the other departments to achieve the overall objectives and goals of the firm.

    Helpful in Controlling Function:

    The marketing planning sets the performance standards and these compare with the actual performance of various departments.

    If these variances are favorable, efforts make to maintain them; and, if these variances are unfavorable, efforts are made to remove them.

    Increases efficiency:

    Marketing planning helps in increasing the managerial efficiency of the firm. It is meant to ensure efficient allocation & utilization of resources. They also compare the results with the set standards to ensure the efficiency of the organization.

    It directs all the managerial activities of the firm and controls these activities. They develop the feeling of sincerity and a sense of responsibility among the managerial executives by defining the duties, rights, and liabilities of all employees of the firm; which in turn increases the efficiency of the firm.

    Consumer satisfaction:

    Under marketing planning, the needs and wants of the customer (or consumer) study properly; and, marketing activities are channelized to provide better customer satisfaction; which in turn maximizes the profit of the firm.

    Therefore, by concentrating on customer satisfaction, marketing management increases market share and revenue of the business enterprise.

    References: Marketing Planning: Concept, Characteristics – yourarticlelibrary.com/marketing/marketing-planning-importance-benefits-and-characteristics/50832, and Importance – gktoday.in/gk/importance-of-marketing-planning/.

  • Integrated Marketing Communications (IMC): Definition, Components, and its Process

    Integrated Marketing Communications (IMC): Definition, Components, and its Process

    What is IMC? Integrated Marketing Communications (IMC) is a marketing concept of the 1990s. It will be necessary for survival in the 21st century. It ensures that all forms of communication and messages are carefully linked together. The topic of this article: IMC Meaning, Definition, Components, and its Process. At its most basic level, Integrated Marketing Communications, or IMC, as we’ll call it, means integrating all the promotional tools, so that they work together in harmony. Read and share it in English!

    Introduction of Integrated Marketing Communications (IMC) Explanations!

    The advent of integration is causing marketers to take a fresh look at all the components of marketing, specifically the unique dimension that public relations bring to the marketing mix. Public relations people, in turn, are seizing the opportunity that integration offers them to make a difference where it counts most to their companies and clients – on the bottom line.

    IMC is the culmination of the shift that began in the post – World War II period, from selling what the companies make to making what the consumers want. IMC focused on what to know about products and services, not what the marketers want to tell them in order to sell them.

    Meaning and Definition of Integrated Marketing Communications (IMC):

    It is essential for organizations to promote their brands well among the end-users not only to outshine competitors but also to survive in the long run. Brand promotion increases awareness of products and services and eventually increases their sales, yielding high profits, and revenue for the organization.

    Integrated Marketing Communication defined as the coordination and integration of all marketing communication tools, avenues, and sources within a company into a seamless program that maximizes the impact on customers and other end-users at a minimal cost.

    This integration affects all firm business-to-business, marketing channels, customer-focused, and internally directed communications. It is a management concept that is designed so that all the marketing communication which consists of advertising, sales promotion, public relation, and direct marketing work together as a unified force rather than each of those marketing communication work in isolation.

    Besides, it acts as an aggressive marketing plan because it sets and tracks marketing strategy that captures and uses the extensive amount of customer information. It also ensures that all forms of communication and messages carefully linked together to achieve a specific objective.

    Definitions of Integrated Marketing Communications (IMC):

    The American Association of Advertising Agencies (AAAA), defines it as:

    “A concept of marketing communication planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines, e.g. general advertising, direct response, sales promotion and public relations – and combines these disciplines to provide clarity, consistency and maximum communication impact.”

    The Northwestern University’s Medill School of Journalism defines IMC as,

    “The process of managing all sources of information about a product/service to which a customer or prospect is exposed which behaviorally moves the customer toward the sale and maintains customer loyalty.”

    According to Kotler and Armstrong, Integrated Marketing Communications (IMC) is a concept in which a:

    “Company carefully integrates and coordinates its many communication channels—mass media advertising, personal selling, sales promotion, public relations, direct marketing, packaging, and others—to deliver a clear, consistent, and compelling message about the organization and its products.”

    Integrated Marketing Communication according to Schultz and Kitchen,

    “Is a strategic business process used to plan, develop, execute, and evaluate co-ordinated measurable, persuasive brand communication programs over time with consumers, customers, prospects and other targeted, relevant external and internal audience.”

    Tom Duncan defined IMC as,

    “A process for managing the customer relationships that drive brand value. More specifically, it is a cross-functional process for creating and nourishing profitable relationships with customers and other stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging data-driven, purposeful dialogue with them.”

    In short, Integrated Marketing Communications (IMC) is:

    “Joint planning, execution, and coordination of all areas of marketing communication and also understanding the consumer and what the consumer actually responds to.”

    The Components of Integrated Marketing Communication:

    Let us go through various components of Integrated Marketing Communication:

    The Foundation:

    As the name suggests, the foundation stage involves a detailed analysis of both the product as well as the target market. It is essential for marketers to understand the brand, its offerings, and end-users. You need to know the needs, attitudes, and expectations of the target customers. Keep a close watch on competitor’s activities.

    Corporate Culture:

    The features of products and services ought to be in line with the work culture of the organization. Every organization has a vision and it’s important for the marketers to keep in mind the same before designing products and services. Let us understand it with the help of an example. Organization A’s vision is to promote a green and clean world. Naturally, its products need to be eco-friendly and biodegradable, in line with the vision of the organization.

    Brand Focus:

    Brand Focus represents the corporate identity of the brand.

    Consumer Experience:

    Marketers need to focus on consumer experience which refers to what the customers feel about the product. Also, a consumer is likely to pick up a product that has good packaging and looks attractive. Products need to meet and exceed customer expectations.

    Communication Tools:

    Communication tools include various modes of promoting a particular brand such as advertising, direct selling, promoting through social media such as Facebook, Twitter, Orkut, and so on (Note: Orkut is no longer use it).

    Promotional Tools:

    Brands are promoted through various promotional tools such as trade promotions, personal selling, and so on. Organizations need to strengthen their relationship with customers and external clients.

    Integration Tools:

    Organizations need to keep a regular track of customer feedback and reviews. You need to have specific software like customer relationship management (CRM) which helps in measuring the effectiveness of various integrated marketing communications tools.

    Integrated marketing communication enables all aspects of the marketing mix to work together in harmony to promote a particular product or service effectively among end-users.

    Integrated Marketing Communications (IMC) Definition Components and its Process
    Integrated Marketing Communications (IMC): Definition, Components, and its Process!

    IMC (Integrated Marketing Communications) Process:

    The following process below are;

    Identify target audience:

    The promotional process must start by identifying the target audience by using segmentation; which is defining buying preferences and characteristics of buyers and dividing them into segments. Also, the goal of identifying target audiences is to design promotional strategies that can meet customer expectations more accurately.

    Thus, IMC which integrating and coordinating all types of marketing promotional tools; that maximize the satisfaction of buyers will be very useful to the firm’s promotional strategies. This is because IMC can help the company by providing customer databases to sellers; and, marketers to identify information about the buyers precisely and accurately.

    Determine the communication objectives:

    In the second stage, the company needs to develop a clear objective and the goals of promotional strategies. As well as, the objectives of promotional strategies include creating products and services awareness in the buyers’ minds; developing competitive advantages against competitors; creating brand equity of buyers, retaining current buyers, and changing buyers’ behaviors.

    Meanwhile, Integrated Marketing Communication (IMC) develops different types of promotional tools; which have contained different functions to achieve the communication objectives of the promotional strategies effectively and efficiently.

    Design messages:

    An effective message will get the attention of buyers and maintain their interest in the messages about their brand of products. Therefore, the promotional team of a firm should implement IMC when designing the messages delivered to each segment in order for the messages to deliver effectively.

    Although a tailored message for each target segment designed by using several promotional tools in the IMC process; but, the messages of promotions must have the same meaning and theme. This is because each of the promotional tools must use to achieve the same communication objectives and goals within the firm.

    Implementation of a promotional strategy:

    Promotional channels can divide into two categories, which consist of personal communication and non-personal communication channels. So when incorporated IMC into the promotional strategy, it needs to select and implement the right marketing channels and methods.

    No single channel can dominate in all aspects; which means that the channels need to adjust based on the market’s needs and changes from time to time. This has proven that IMC which integrating and coordinating all types of marketing promotional channels can be very useful; when it comes to the implementation of the promotional strategy process.

    Collecting feedback:

    Finally, the firms will carry out some surveys in order to get some feedback from; the target audience as the final step in the IMC process. For example, the firm will ask how effectively the message was delivered to the target audience; such as how many times the audience saw the advertisement, or can the audience remember; what the message marketers are going to inform and etc.

    Based on that, the firm will conduct a report about the behavior resulting from the message, such as how many of the target audiences buy the product or visit the store after they saw the advertisement. This information could be very important to the firm promotional strategies as; it could directly affect the volume of sales, profits, and indirectly reflect; the success of the promotional strategies that had been implemented. Hence, all this information can get from the customer database to create more accurate and reliable feedback.

    References:

    • mbaknol.com/marketing-management/introduction-to-integrated-marketing-communications-imc/
    • managementstudyguide.com/integrated-marketing-communications.htm
  • Marketing Management Meaning, Characteristics, and Objectives

    Marketing Management Meaning, Characteristics, and Objectives

    Meaning: Marketing management facilitates The activities and functions which are involved in the distribution of goods and services. Marketing Management Meaning, Characteristics, and Objectives. Their sales plan to a greater extent rest upon the requirements and motives of the consumers in the market. This objective, the organization has to pay heed to the right pricing, effective advertising and sales promotion, distribution and stimulating the consumers through the best services.

    You are one of a Seller or Buyer in Market, So let’s know Marketing Management of Meaning, Characteristics, and Objectives. With Meaning and Definition.

    What is Marketing Management? Marketing management signifies an important functional area of the business manager responsible for the flow of goods and services from the producers to the consumers. It is accountable for planning, organizing, directing, coordinating, motivating and controlling the marketing activities. The types of Product in Marketing Management! In effect, it is the demand management under customer-oriented marketing philosophy.

    Meaning of Marketing Management:

    Marketing management is the management of the crucial and creative task of delivering consumer satisfaction and thereby earning profits through consumer demand. It is the performance of managerial functions of planning, execution, coordination, and control in relation to the marketing functions of marketing research, product planning and development, pricing, advertising, selling and distribution with a view to satisfying the needs of the consumer, business and society. The above expressions bring home very clearly the very substance of marketing management as a matter of planning, implementing and controlling the marketing programmes.

    Marketing management is the marketing concept in action. It includes all activities which are necessary to determine and satisfy the needs of consumers. To be very simple, marketing management sets marketing objectives, develops marketing plans, organizes marketing functions, puts marketing plans and strategies in action and monitors the marketing programmes in the final analysis. Effective marketing management requires the ability and skill of the highest order.

    It warrants close appreciation of the consumer and an understanding of forces of change which are at work in the environment and which have the deep-rooted impact on consumer buying habits and motives. It calls for fertile imagination and creative skill in planning to meet the changing conditions of the marketplace; it also requires skills of coordinating and controlling the wide-spread and complex activities of a dynamic organization. The prime purpose of marketing management is to know the consumer so well that the firm is able to offer him or her products and services to which the consumer remains loyal and the new consumers keep on coming at increasing level.

    Definition of Marketing Management:

    According to Philip Kotler, “Marketing management is the analysis, planning, implementation and control of programmes designed to bring about desired exchanges with target markets for the purpose of achieving organizational objectives. It relies heavily on designing the organizations offering in terms of the target markets needs and desires and using effective pricing, communication, and distribution to inform, motivate and service the market.”

    Marketing management is concerned with the chalking out of a definite programme, after careful analysis and forecasting of the market situations and the ultimate execution of these plans to achieve the objectives of the organization. Marketing management is “The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value” by Kotler and Keller.

    Features or Characteristics of Marketing Management:

    Some of the main points characteristics of marketing management are as follows:

    Customer-Orientation:

    All business activities should be directed to create and satisfy the customer. Emphasis on the needs and wants of consumers keeps the business on the right track. All marketing decisions should be made on the basis of their impact on the customer. The consumer becomes the guise of business. Also, learn Explaining Product Development in Production Management.

    Marketing Research:

    Under the marketing concept; knowledge and understanding of customer’s needs want and desires is very vital. Therefore, a regular and systematic marketing research programme is required to keep abreast of the market. In addition, innovation and creativity are necessary to match the products of requirements of customers.

    Marketing research is “the process or set of processes that link the producers, customers, and end users to the marketer through information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications.” by Wikipedia.

    Up-to-date and adequate knowledge must be available to answer the following questions:

    • What business are we really in?
    • Who are our customers?
    • What do the customers want?
    • How should we distribute our products?
    • How can we communicate most effectively with our customers?’
    Marketing Planning:

    The marketing concept calls for a goal-oriented approach to marketing. The overall objectives of the firm should be the earning of profits through the satisfaction of customers. “A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, without a sound strategic foundation, it is of little use to a business” by Wikipedia. On the basis of this goal, the objectives and policies of marketing and other departments should be defined precisely. Marketing planning helps to inject the philosophy of consumer-orientation into the total business systems and serves as a guide to the organization’s efforts.

    Integrated Marketing:

    Once the organizational and departmental goals are formulated, it becomes necessary to harmonize the organizational goals with the goals of the individuals working in the organization. The activities and operation of various organizational units should be properly coordinated to achieve the defined objectives. The marketing department should develop the marketing mix which is most appropriate for accomplishing the desired goals through the satisfaction of customers.

    Customer Satisfaction:

    “Customer satisfaction is a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectation” by Wikipedia. The aim should be to maximize profit over the long run through the satisfaction of customers wants.

    Aim or Objectives of Marketing Management:

    In the light of this statement, we can highlight the aim’s of marketing management as follows:

    • Creation of Demand: The marketing management’s first objective is to create demand through various means. A conscious attempt is made to find out the preferences and tastes of the consumers. Goods and services are produced to satisfy the needs of the customers. Demand is also created by informing the customers about the utility of various goods and services.
    • Customer Satisfaction: The marketing manager must study the demands of customers before offering them any goods or services. Selling the goods or services is not that important as the satisfaction of the customers’ needs. Modern marketing is customer- oriented. It begins and ends with the customer.
    • Market Share: Every business aims at increasing its market share, i.e., the ratio of its sales to the total sales in the economy. For instance, both Pepsi and Coke compete with each other to increase their market share. For this, they have adopted innovative advertising, innovative packaging, sales promotion activities, etc.
    • Generation of Profits: The marketing department is the only department which generates revenue for the business. Sufficient profits must be earned as a result of the sale of want-satisfying products. If the firm is not earning profits, it will not be able to survive in the market. Moreover, profits are also needed for the growth and diversification of the firm.
    • Creation of Goodwill and Public Image: To build up the public image of a firm over a period is another objective of marketing. The marketing department provides quality products to customers at reasonable prices and thus creates its impact on the customers.
    • Creating Customers: A business firm is established to sell a product or service to customers. Therefore, the customer is the foundation of a business. It is the customer who provides revenue to business and determines what an enterprise will sell. Creating customers means exploring and identifying the needs and requirements of customers. If a firm is to go and stay in business, it must create new customers. It should analyze and understand their wants.
    • Satisfying Customers Needs: Creating customer is not enough. Business should develop and distribute products and services which meet the requirements of customers to their satisfaction. If customers are not satisfied, the business will not be able to generate revenues to meet its costs and to earn a reasonable return on its capital. Satisfying customers does not simply mean matching products with customers’ needs. It also requires the regular supply of goods and services of reasonable quality at fair prices.

    The marketing manager attempts to raise the goodwill of the business by initiating image-building activities such a sales promotion, publicity and advertisement, high quality, reasonable price, convenient distribution outlets, etc. The objectives of marketing management have been obtained from the overall objectives of the business. The overall aim of the business is to create, develop and serve society with other things. Marketing management can contribute to the achievement of these objectives by developing and distributing those objectives and services that meet the needs of the customers and benefit the business enterprise.

    Summary: Marketing Management Meaning, Characteristics, and Objectives.

    What is Marketing Management? Explains.

    1. Meaning of Marketing Management.

    2. Definition of Marketing Management.

    3. Features or Characteristics of Marketing Management, and:

    • Customer-Orientation.
    • Marketing Research.
    • Marketing Planning.
    • Integrated Marketing, and.
    • Customer Satisfaction.

    4. Objectives of Marketing Management:

    • Creation of Demand.
    • Customer Satisfaction.
    • Market Share.
    • Generation of Profits.
    • Creation of Goodwill and Public Image.
    • Creating Customers, and.
    • Satisfying Customers Needs.

    Marketing Management Meaning Characteristics and Objectives