How Marketing Functions have Changed Over the Years

With the surge of social networking portals, multifunctional cell phones, and gadgets, the face of marketing has undergone a major makeover in the past decade. It has in fact become an imperative practice for companies to follow the latest marketing trends to not just get new customers, but also to retain the existing ones. Aggressive, competitive, and innovative marketing strategies are the precept today. Technological advancement has become a blessing for consumers and given them a sense of empowerment. Product information is available at the click of a finger and there are more competitors than ever in the market. Hence, every company aspiring to rule the roost has had to embrace the metamorphosis of its marketing functions. In fact, this evolution has been a global affair. However, if Internet and technology has benefited the consumers, it has also created new media for marketing around the globe in the virtual world. Within this decade, new non-traditional marketing concepts have emerged, such as viral marketing, social media marketing, undercover marketing, and attraction marketing.

Out with the Old, In with the New
In the beginning of the 21^st century, companies were armed with human resources to build personal relationships with their customers to boost sales through one-on-one interaction in a controlled environment. Consumers believed the information dished out to them by sales professionals. The tables have turned around and it is now the consumers that have an expanse of verifiable information available at hand at the click of a finger. The past decade has also seen a change in the consumer attitude. They now expect more features for a lower price. According to the statistics given by Pew Internet & American life Project, as of May 2010, almost 80% Internet users conduct an online background research on a product before making a purchase decision. Customization and segmentation have emerged as the new indispensable marketing tools. Although, the objective of marketing remains the same, its approach has changed. The need for this development stemmed from the demand of consumers as witnessed with the commencement of this decade. The new-age consumers became more demanding, adventurous, and enthusiastic to try out different market offerings. Marketers exploited this behavior as an opportunity to steer consumers in their favor. This gave rise to greater emphasis on creating a brand value. A brilliant marketing strategy can even convince its prospective customers that the product will satisfy their needs and persuade them to overlook the product's shortcomings.

The New Age: Internet Marketing
You can buy almost everything online today. The internet has drastically changed the face of trade and commerce in the past decade. Hence, it is not surprising to note that it has also been responsible for marketing as it is au courant. The massive online presence of consumers prompted a revolution in the way of advertising and marketing. More companies have stretched these functions to the realms of the virtual world to influence consumer behavior in their favor. They are attempting to build a strong network that allows them to get closer to their clients. While online advertising began in the form of banner ads on websites, it has now taken the forms of viral videos, blogging, promotional campaigns on social networking websites, and consumer discussion forums. Marketers are beating their brains out to keep themselves abreast with the changing trends in consumer needs and tastes. In fact, internet has proved to be a reliable source for gathering data for the same. A marketer can research on the target market through surveys, polls, and interaction with focus groups through online media. This has enabled the consumers to contribute in the decisions pertaining to product offering. Nevertheless, the whole process can now be conducted much more speedily than ever before. It would be absolutely unfair to skip the subject of search engines here. They were the propellers of these changes in marketing. A product that has no mention in any of the domineering search engines, has instantly lost its reputation amongst prospective customers. An example of this trend in internet network marketing is the fundamental - "If Google doesn't know, nobody does."

Thanks be given to the world wide web, it is now possible for the marketing to facilitate instant sales through the option of mail order shopping, instant access to product information and subsequently, acceleration in the time taken to make a sale. Companies have transposed their focus to garnering online traffic to their websites, blogs, ads, and social networking accounts through search engine optimization of keywords, publishing extensive content, purchasing customer database from other companies, and establishing consumer-friendly interfaces to solve queries. The size of the company's scale of operations is no longer a factor for consideration to plan a fruitful marketing strategy. Ten years ago, companies could afford to rely on consumer loyalty to maintain a stake in the market. However, if a company does not make its market presence felt through adequate marketing, its position will be quickly taken over by its competitors.

Internet Marketing Statistics

According to HubSpot.com:

• Twitter has assisted 42% companies present on its portal to bring a new customer.
• 66% marketers rank blogs as an important source of increasing online traffic to company website.
• 57% company blogs are credited for acquiring new customers.
• Facebook has helped 67% B2C companies and 41% B2B companies to generate business.
• Inbound Marketing costs as much 62% less than outbound marketing.

According to Chadwick Martin Bailey and iModerate Research Technologies:

• 51% fans of a company's Facebook page will make a purchase.
• 79% followers of a company's Twitter account will recommend its products to others.

The Evolution of Marketing
Looking back at the past decade, the forms of marketing that nobody had ever heard about, are now into play and they are being employed with noteworthy results. Take the instance of electronic marketing. In the start of the millennium, e-mail marketing was the greenhorn. Today, it is an essential part of nearly every marketer's PoA. In the field of marketing, it initially gained recognition as a means to reach many customers through a single source of communication. Now, it is the medium of marketing that is used to send personalized messages to different target groups segmented into smaller sizes. And, this trend seems to be present in all other forms of marketing. Marketers have come to realize that each consumer has a varied psychology and in order to get more customers, they must reach each one discretely. While this knowledge was established during this decade, it was not until recently that the marketing strategies designed specifically concentrated on manifesting it. The concept of 'mass marketing' and 'high economy of scale' is now passé. A visionary company now spends a considerable portion of its budget to distinguish the consumers' needs and offer products that satisfy each one. This has resulted in horizontal diversification of the product line. Such an approach is less likely to culminate into the total failure of the marketing plan.

This is just a brief insight on how marketing has changed over the past 10 years. Not to miss out, the global recession crises and unfavorable employment rates in most economies has also prompted companies, big or small, to devise more riveting marketing strategies. The world population may be growing, but how many people can they really sell to? Marketing is the medium of stimulating sales in the future and subsequently, it's one of the most important functions of the management of a company. In the present consumer-driven market, companies cannot afford to let their competition have access to any window of opportunity to take the lead. Marketing is the solution to that. Take a closer look, marketing is not limited to just profit-driven companies anymore. Almost every person, organization of our commercialism-driven society is marketing itself today.

Importance of Product Packaging in Marketing

The flashy orange of Hermès, the legendary aqua blue of Tiffany & Co. or the deep red that defines Cartier packaging elicits sighs even before one opens them to discover the plush contents they carry. The containers of these iconic brands have their devoted section of fans who, believe it or not, even source them from online auctions, knowing that they can't afford the expense of actually buying something luxe in order to obtain those coveted boxes. I'm aware that this might sound completely far-fetched to those who view the concept of packaging with nonchalance, but marketing experts are sure to tell you otherwise.

Unlike advertising, where you'd have to scream from the rooftops to get the consumer's attention, innovative packaging just sends out sublimely effective pick-me-up signals that are irresistible even to the hardest of cynics. You could also call it a final sales pitch, especially because it is common knowledge that emotions play a massive role when it comes to buying. Therefore, it isn't a coincidence when brands with the highest recall value (Nike, Apple, Coca-Cola) are those who invariably invest a great amount of thought behind their packaging.

Brand Association

As a consumer, entering a supermarket and finding endless aisles of similar brands can be assaulting to the senses. What do you think happens next? The vast array of goodies on display compels the consumer to remember and associate a certain kind of package with the brand of their choice. Recognizable brands have a definite edge, no doubt, but think... who will possibly pick up a Coke that's packaged in a steel-gray can with black lettering instead of the regular, flashy red and white? Innovative packaging, with the company logo emblazoned across it makes an established brand stand-out. A perfectly legal attention-grabbing tactic, it tests the consumer's loyalty to the brand and reinstates a recognized brand's presence.

Simply Outshine!

There is no denying that we humans are a judgmental lot, and we take great pleasure in creating preconceived notions based on appearances. As a seller, it would be a crime not to cash in on a golden opportunity like this one. Have you ever wondered why a Barbie doll always comes in a pink box? Or that men's deodorants are mostly packaged in black cans? Science does have a role to play here, but the simple explanation is that companies stereotype, and customers willingly succumb. You see, there is a reason why Tiffany & Co. use that special aqua blue box with a white ribbon to pack their jewelry in, and Nike made that special stadium shoe box for football crazy kids.

Practicality Scores

Product packaging is not limited to appearances, mind you. It goes beyond wrappers and ribbons when it comes to certain wares, perishable commodities in particular. In such cases, freshness rates above everything else and packaging standards must comply. The USFDA has specific rules regarding packaging of edible products, and manufacturers have to adhere to those. Having said that, sellers need not necessarily shed their creativity to accommodate practicality, (there are some very funky juice cartons which prove my point).

Go Green!

Environment friendly packaging never fails to impress, moreover, it helps you establish an image that is austere and conscientious. Reusable, environment friendly containers are usually a big hit with the consumers who will appreciate your concern for planet Earth. Green initiatives spruce up a company's image in no time, and as a brand, you end up doing your bit towards undoing environmental damage to some degree. It is also the need of the future, as most governments are more or less likely to enforce strict rules regarding usage of environment friendly packaging.

Bait the Customer

When it comes to luring customers, nothing does the job better than the manner of packaging. Shopping is a multi-sensory experience and manufacturers must view it that way. New products looking at making a breakthrough can edge out complacent competitors solely on the basis of attractive packaging. With certain products like cosmetics, customers appreciate the company's attention to aesthetics. Be it gourmet chocolates or garbage bags, beautiful packaging matters, and it is sure to give you results.

Don't Get Too Excited

It's time to curb the enthusiasm a bit, because it is very easy to get carried away with creativity. Packaging, ultimately, has but one aim - to get the consumer to buy the product in question. It is not an avenue for product designers to showcase their creativity by thoroughly neglecting the primary purpose which is product sales. Designers have to possess the sensibility to refrain themselves from viewing product design as a contest. After all, a good product package is the one that sets the cash register ringing.

To sum it up, product packaging is serious business, and it calls for attention. As a manufacturer, you need it to be adequately enticing without making it ridiculously over the top. Though it's hard not to cross the fine line that separates the swishy from the trashy, it's totally worth the effort once you get it right.

Target Marketing Strategy

Marketing is an important feature that plays a vital role in the functioning of the company. If the product is not marketed in the right way and not reaching the final customer, the company fracasará. For this reason, the marketing strategies play a crucial role. While the marketing of a product, the company has to decide a target market. Target market is not anything other than the specific set of audience that the manufactured product is intended to serve. Target market is more like split the vast sea of customers into smaller segments and the use of the 4 PS of marketing (product, price, place and promotion) in this segment in an effective way to achieve maximum sales and profits. Target marketing strategy helps make this subset of the population of clients that are more likely to purchase and use the product.

How to identify a target market

The entire concept of target marketing should lower the fact that may not please everyone! A market target, unlike the total marketing does not deliver a single product for the entire market. Instead, marks a specific range of persons to which the product must be effectively marketed to. As a marketing professional you must correctly identify the target market and exploit the greatest possible gain. To identify the target market you will need to look at the product manufactured and sold. Ask some questions:

▲ What this product?

▲ Who is useful?

▲ What regions of the world will accept this product?

How to divide the market into segments

To refer to a sector in particular, the whole market has to be first divided according to different criteria. This can be done in the following ways:

Demographic segmentation: this segment consists of the categorisation of clients depending on factors such as age, income, size of family, gender, education, nationality, race, etc.

Geographic segmentation: as we already read previously, based on region segmentation is important when dealing with specific products as refrigerators of the desert, coats of skin, blankets, waterproof snow boots, etc, weather conditions will determine the area of destination.

Behavior segmentation: This form of segmentation clubs factors as loyalty to the brand and the value of quality. For example, several it companies market their products specifically to customers loyal to their products. On the other hand, some companies their products on a larger scale to guide people that we appreciate, we value and they are willing to pay extra money for valuable pieces.

The psychographic segmentation: this type of categorization implies clubbing of the interests of the people, lifestyles and personalities.

Technographic segmentation: This type of segmentation that distinguishes people based on the technology used. Technology increasingly a part so ingrained in our lives, technographic segmentation becomes even more important.

These five types of segmentation are only the broader approach of slicing a market into segments. Even if it has that demographically, within it, will once again have to segment the market. Most sellers use a combination of these types of segmentation to reduce at the most effective target market.

Here are some simple examples:

Low waist jeans: product cater to the taste buds of the generation young, teenage fashion. Thus, the target market is based on the age group of 14-25 years of age. In addition to the demographic segmentation, also must be in mind the geographic segmentation, since not all countries accept this product. The Arab countries have a strict dress code and these products are not sold there.

Cosmetics: Cosmetics are gender-based, exclusively for men or women, therefore, the segmentation based on sex that has to be done. However, only between the market on the basis of gender is not enough. Lifestyles of men and women come into play, because cosmetics come in all ranges and therefore depending on the cost of the product, it will be necessary the psychographic segmentation and behavioral.

Desert coolers: If your company is the sale of desert coolers, it is more than obvious that the target market will be very hot in the world and not cold regions.

Baby products: sellers who sell products for babies should segment their market in terms of age groups, but we must also consider the physchographic segmentation, because the sales will depend on the way of life of the parents. If parents have a luxurious lifestyle, will be d

Marketing Menus and Yelp Ratings.

A number of articles recently proclaimed the economic benefit of restaurant reviews. Not unusually, many of them cited identical assertions that could be traced back to the original press release.

Being something of a sceptic regarding both the reporting of academic papers and the power of anonymous recommendation, I emailed one of the authors at Berkeley to try to understand if what was reported was what he had claimed. He pointed me to this article by way of a good summary.

My logic is that better restaurants will be fuller because they are better restaurants and that any ratings they garner will follow that and not vice versa. I also believe that people are more likely to pay attention to the views of trusted friends or proven professional reviewers than crowd-sourced averages and, having consulted an old professor of mine, I remain unconvinced that the study has proven any real causality. We both agreed that to do so would require a longitudinal study of the relation between a restaurant's success and its changing ratings over time.

That said, the study is not the problem, my real concern is not with the study but with the dissemination of the headline and how innumerate marketers will translate that into promotion mode. It will lead to the gaming of ratings rather than the improvement of the rated and all because of a claim that people far smarter than they never made. Evidence-based marketing has a long way to go. Understanding the evidence is a good place to start.

Avis Tries Blander.

New CMO.  New agency. New campaign. Same old meaningless justifications - this time reported in AdAge.

"Consumer-centric brands must always evolve in order to keep pace with ever-changing customer needs and preferences." She added that "Avis is evolving as a premium brand to better meet those needs." The new tagline, she said, is "reflective of [Avis'] ongoing mission to be a customer-led, service-driven company, and presents the brand in terms of the customer experience and the advantages inherent in renting from Avis."

Me neither. So let's move on to something I think I do understand - the removal after 50 years of the one thing people associate with Avis. Something I doubt will ever fall out of the list of customer needs and preferences regardless of how much they evolve. Something that reeks of that brand equity thing that marketers are always banging on about, and something that can't be explained away with this rationale:

"We firmly believe that after nearly five decades, 'We Try Harder' is fully embedded in the Avis DNA, and defines the spirit our employees embody to deliver superior customer service."

Well, it's not in the DNA of new employees, it's not in the mind of new customers and it's not going to remain in anyone's consciousness without regular reminders. To think otherwise is to subscribe to the homeopathic school of marketing.

It doesn't have to be at the heart of their marketing, but to remove it completely is to jettison heritage and authenticity for fear that those aren't modern attributes. It's what Coke did with New Coke and, just like old Coke, I'd imagine that We Try Harder will return. If only because evolving from distinctive to bland in one CMO is just not trying hard enough.

Start Up With Your Customers.

Outside the realms of tax efficiency, nobody starts a business in the belief that it will fail. However, a recent visit to a start-up incubator revealed mindsets that ignored the possibility while putting the cart before the horse and making some basic marketing mistakes.

1) What you've done in the past is of very little relevance to your future customers unless they were your customers in the past. The most bizarre example of this was the proclamation that their CEO is a biathlete and their COO a fencer. Egoes should be checked at the door.

2) Your marketing focus should be on what the customer perceives to be the problem, rather than on what you deem to be the solution. A dating site that was promoting itself as a place where you could be honest rather than having to lie was missing the fact that its selling point was verified profiles that other users could trust.

3) Being funded doesn't mean you've proven your business case. You've just convinced some people who are not your customers of the veracity of your hunch.  The "pivoting" vogue isn't a get out of free jail card and it over-values the idea of doing something, indeed anything rather than thinking rigorously about whether you have identified a genuine problem.

As always, it's not about you and your self-proclaimed entrpreneurship, it's all about your potential customers. Barriers to entry may have fallen, but the barriers to success are as high if not higher than ever.

Effective Marketing Strategies

The American Marketing Association (AMA) defines as the activities of marketing, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society in general. The contribution of marketing to the success of any business is highly significant. In fact, the marketing has the power to determine the success of a product or service specifically released. Effective marketing involves the application of many strategies, two of which are: advertising and public relations. Let's try to understand these two terms in the following discussion. Hereinafter in this article, the use of the term product refers to both, a service or a product that has to be marketed.

Advertising

Advertising refers to any form of presentation and impersonal payment of ideas, goods or services by an identified sponsor.

Types of advertising

Informative advertising: This includes ads that are intended to provide product information to the customer. This form of advertising informs the client about the different features and benefits of using the product.

Persuasive advertising: the objective of this form of advertising is to persuade the consumer to buy a product or subscribe to a service. It usually includes some additional attractive features or special offers that attract even more customers to buy a product.

Comparative advertising: these types of ads, indirectly or directly, to compare the product to be marketed with another of similar characteristics. Usually, when there are only a few (usually two) major players in the market, one or all of these competitors in business using this advertising strategy.

Rememorative advertising: Advertising via this type is generally in the case of a product that is well established and has a strong position in the market. This type of advertising is used only to remind consumers about the product.

Advertising graphics

Growth phase: the function of advertising charge an immense importance in the home or a product launch. Advertising tends to be in full swing at this stage. All advertising techniques are put into use at this stage. Initially, informative advertising is used. In the last part of this phase, persuasive and informative advertising is used.

Foundation phase: once the product has established a position in the market, a combination of persuasive advertising, comparative and rememorative is observed with informative advertising maintains its level lowest.

The decrease in phase: in this phase, the whole process of advertising is suppressed. Rememorative advertising can be used in isolated cases. If there is any possibility of reactivation of the product, an innovative approach to advertising can be applied.

Objectives of advertising

To generate awareness about a product or service offered.

To inform the consumer about the various features of the product or service.

To induce the customer to buy the product or make use of the services offered.

Secrets to a good advertising

The repetition of ads

The strategic placement of advertising (including time)

Target market and segmentation while that advertising considerations

Quality of ads

Form of advertising

Public relations

Public relations refer to any form of non-remunerated communication, designed to generate a positive image of a company in the market. It can also be considered as an effort planned by an organization for the establishment of opinion favorable to the Organization and its products and services.

Public relations tools

News

Speeches

Special events

Written material

Audiovisual material

Corporate identity material

Other (social cause, web sites, employees)

Public relations graphic

Growth phase: as in the case of advertising, public relations in the growth phase is of utmost importance for the Organization and the considerable time and effort to public relations.

Established and growth phase: it has been observed that most of the companies do not involve much importance to public relations once the product has passed the stage of growth. However, it deals with public relations with the image of the organization in general and is not limited to a particular product. Therefore, ideally, the band must have a graph that does not fall below a preset minimum. The public relations strategy should be attributed a predetermined level of importance throughout the life of an organization, and a peak must be observed with an increase in pub relations activities