Marketing Aptitude

Understanding Market
Market is a place where buyers and sellers meet each other to enter into transactions.. The exchange of goods or services for money is a transaction. Market comprises not only the actual buyers but also the potential buyers of a product or service.

The presence of sellers and actual & potential buyers of a products or services over the Internet is known as "Online market" or "web market"

Can Two Persons make a Market?

Two persons can trade. However to create a market it takes at least three persons to have a market, so that there is competition on at least one of its two sides In markets, the buyers outnumber sellers.

ABC Method

ABC method refers Attention, Benefits and Close. Its a sales method, where the customers attention is attracted, the salesperson then shows the benefits of the product to the customer, and finally closes the deal

What is Utility?

Want-satisfying power of a good or service is called utility.

Definition of Marketing

The process of planning and executing the concepts, pricing, promotion and distribution of ideas/goods/services to satisfy individual's/organizational goals is called marketing.

What is Viral Marketing

Viral marketing, viral advertising, or marketing buzz are buzzwords referring to marketing techniques that use preexisting social networking . Marketing by the word of the mouth, having a high pass-rate from person to person is called Viral marketing. Creating a 'buzz' in the industry is an example of viral marketing. Viral marketing may take the form of video clips, interactive flash games, advergames, text messages, etc

Viral marketing spreads the name of your business to more and more people through the Internets social media platforms so that your customer base gradually keeps increasing.

Marketing buzz

Marketing buzz or simply buzz a term used in word-of-mouth marketing is the interaction of consumers and users of a product or service which serves to amplify the original marketing message

What is Bench Marketing?

A comparison of the business processes with competitors and improving prevailing ones is called bench marketing.

What is Drip Marketing?

The method of sending promotional items to clients is called Drip marketing. The phrase drip marketing comes from the common phrase used in agriculture and gardening called "drip irrigation." This is the process of watering plants or crops using small amounts of water over long periods of time.

Methods

What methods can you use for your drip marketing campaign? Postcards Newsletters Email Newsletter (You'll have to be careful of spam filters) Promotional or Sales Brochures Your drip marketing campaign should keep them aware of your products and services. With this thought in mind your campaign will succeed.

What is Guerilla Marketing?

Unconventional marketing intended to get maximum results from minimal resources is nothing but Guerilla Marketing. It paved the way for small businesses to compete in the marketing arena with the big companies

What is Social Media Marketing?

Social media marketing is marketing using online communities, social networks, blog marketing and more

What is Direct Marketing

Direct Marketing is a form of advertising that directly reaches to the customers on a personal basis (like phone calls, private mailings, etc) rather than traditional channel of advertising (like TV, Newspapers, etc).

Types of Direct marketing:

There are many types of direct marketing, only some important types are listed i)Direct Mail Marketing: Advertising material sent directly to home and business addresses. This is the most common form of direct marketing. ii)Telemarketing: It is the second most common form of direct marketing, in which marketers contact consumers by phone. ii)Email Marketing: This type of marketing targets

What is Indirect Marketing?

Indirect Marketing is the distribution of a particular product through a channel that includes one or more resellers

Difference b/w Direct and Indirect Marketing:

Direct marketing is basically advertising your own products or services. In the same way you might advertise for someone else is called Indirect marketing, is an increasingly popular way of doing business.

What is Internet Marketing?

Internet marketing is the marketing of products or services over the Internet. Internet Marketing is also known as imarketing, web-marketing, online-marketing, Search Engine Marketing (SEM) or eMarketing.

What is Digital Marketing?

Digital Marketing is the practice of promoting products and services using all forms of digital advertising. It includes Television, Radio, Internet, mobile and any other form of digital media.

What is Market Research

Market research is any organized effort to gather information about markets or customers. Market research is for discovering what people want, need, or believe. It can also involve discovering how they act. Once that research is completed, it can be used to determine how to market your product.

Notes on Marketing Aptitude

. CTR (Click Through Rate) is related to Advertising metrics. Deciding initiatives in a short-term, for a longer term orientation is called Strategic marketing Marketing via e-mail falls under the category of direct marketing.

The sale of solution to a problem and not features of an item is called solution positioning. That which can be offered to satisfy a need of the customer is called product.

An exposure to various other unutilised services of the bank to a customer is called cross selling.

A buyer whose latest purchase lies within the last 1-year period is called active buyer

A marketing research undertaken for a particular one-time need is called ad hoc research.

A 'likely' interested customer of the bank is termed as a prospect. In marketing, calling on the prospective customers is known as a call. When an organisation head inspires its employees to perform better, it is called motivation. In sellers' market marketing is not required to be undertaken.

Availing marketing services from ad hoc suppliers, rather than a centralised source is called a la carte. An example of the practice of a la carte is advertising company. Marketing study that monitors the changes in the consumer attitudes, awareness and uses of a product, is known as AAU. The essence of a product, its quality and competitiveness displayed in the form of letters, symbols and colours is known as branding.

The process of using research tools to understand a market is called marketing research.

A persuading communication between the Company's representative and a prospective buyer lies under the class of personal selling. The development of marketing mix to influence a customer's perceptions of a brand is called positioning. When a marketer persuades a person/group of prospective buyers, the communication is

What is Customer Relationship Management (CRM)?

Customer Relationship Management concerns the relationship between the organization and its customers. It is a process used to learn more about customers' needs and behaviors in order to develop stronger relationships with them.

What is Market Information?

To know the prices of the different commodities in the market, as well as the supply and demand situation.

What is Branding?

The essence of a product, its quality and competitiveness displayed in the form of letters, symbols and colours is known as branding.

What is SWOT Analysis?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats SWOT analysis is a tool for analyzing an organization and its environment.

Skimming pricing strategy

In market skimming pricing strategy Initially price is higher and then it is reduced.

Price discrimination

Price discrimination or price differentiation exists when sales of identical goods or services are transacted at different prices from the same provider.

Penetration pricing

Penetration pricing is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers

Premium pricing

Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price.

Basics of Brand

A brand is a symbol or a mark that helps the customers in instant recall and differentiates it thereby from the competitor products of same nature.

Difference between Selling and Marketing

While selling means offering to exchange something (intangible or tangible) of value for something else, marketing means much more. Selling is a part or component of marketing. Marketing may start even before production of goods and services. Marketing involves analyzing consumer needs, securing information needed to design and produce goods or services that match buyer expectations, creating, and maintaining relationships with customers and suppliers.

Who is a customer?

A customer, also known as a client is a current or potential buyer of a product -good or service. The firm or organization is seller. A potential customer is also known as prospective customer or client. A customer may view, check, experience the service but not purchase.

What is Market Segmentation?

The division of a market into different homogeneous groups of consumers is known as market segmentation. The purpose for segmenting a market is to allow your marketing program to focus on prospects that are "most likely" to purchase your offering. If done properly this will help to insure the highest return for your marketing expenditures.

Market segmentation helps the marketing decision in following ways:

By helping the marketer to identify the groups of customers to whom he can more effectively target marketing efforts. By helping the marketer in addressing the customer needs and satisfying them. By helping, the marketers to stay focused rather than scattering their marketing resources.

Marketing Mix:
Marketing mix is the combination of elements that you will use to market your product If you could identify the right combination of these elements, your marketing would succeed. The 4 P's of Marketing describe the mix of factors required to successfully market a product.

Marketing Mix : 4P's and 4C's

The 4 Ps are: Product Price Promotion Place (distribution) The first 4 P's are considered the basis of any marketing process.

Four Cs of Marketing Mix

Now a days, organizations treat their customers like kings. In the current scenario, the four Cs has thus replaced the four Ps of marketing making it a more customer oriented model. Commodity - (Replaces Products) Cost - (Replaces Price) involves manufacturing cost, buying cost and selling cost Channel - The various channels which help the product reach the target market. Communication - (Replaces Promotion)

The Extended Marketing Mix for Service Industry: Additional 3 Ps

The marketing mix of product marketing consists of 4Ps, the services marketing takes in 3 more Ps making the extending market mix for service industry: 7Ps The additional 3Ps are People, Process and Physical Evidence.

People - The individuals involved in the sale and purchase of products or services come under people. Process - Process includes the various mechanisms and procedures which help the product to finally reach its target market Physical Evidence - With the help of physical evidence, a marketer tries to communicate the USPs and benefits of a product to the end users It refers to the experience of using a product or service. When a service goes out to the customer, it is essential that you help him see what he is buying or not. For examplebrochures, pamphlets etc serve this purpose.

Why additional Ps?

These additional 3P are required because of the special characteristics of the Service Industry. Because of certain characteristics like intangibility, inseparability, perishability, variability etc. Service industry needs additional marketing mix elements

Perishability is relating to the fact that services can not be stored. They must be consumed when offered, they can not be held or stocked. Variability is when the quality of services varies due to who provides them. Also where, when and how they are provided. Inseparability is when services can not be separated from there providers. Intangibility is when services can not be seen, tasted, heard, smelt or felt. Services are performed not produced.

The Product Life Cycle

A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.

Introduction Stage

In the introduction stage, the firm seeks to build product awareness and develop a market for the product.

Growth Stage

In the growth stage, the firm seeks to build brand preference and increase market share.

Maturity Stage
At maturity, the strong growth in sales diminishes. Competition may appear with similar products. The primary objective at this point is to defend market share while maximizing profit.

Decline Stage
The marketing mix decisions in the decline phase will depend on the selected strategy. For example, the product may be changed if it is being rejuvenated, or left unchanged if it is being harvested or liquidated. The price may be maintained if the product is harvested, or reduced drastically if liquidated.