Kickstarter Marketing - The Money's Secondary.

Kickstarter launches in the UK at the end of the month and there will be lots of media coverage about this "funding platform for creative projects" and its new way of raising money. But, it occurs to me, it's not really about crowdsourced funding at all.

After all, many of the successful projects could arguably have found traditional funding if the founders had been willing to give up some control to traditional third parties, and many of the projects find themselves funded far beyond the original goals.

No, the money's secondary. Something else is going on. This isn't just crowdsourcing, it's momentum sourcing.

Momentum that's derived from proof of concept; momentum that's derived from building a tribe of promoter-users who are incentivised via the range of prizes on offer; and momentum that's derived from being able to leverage critical mass with future investors, distributors and customers.

Most people see it solely as a fund-raising exercise and that's great, but they shouldn't overlook the baked-in marketing. That's priceless.

Demographic Segmentation

In marketing, it is very difficult that a single organization to meet the needs of all consumers, and therefore has to rely on the concept of "market segmentation". Through segmentation of the market, it is possible that the Organization for the needs of all consumers who belong to a particular niche, rather than trying to meet the needs of the market - which is virtually impossible. Several market segmentation strategies are being used by different organizations today, and "demographic segmentation" seems to be the most coveted of all of them.

Why segmenting your market?

Market segmentation is basically the market division into smaller segments to make marketing easier and avoid the waste of resources. Helps your organization leverage the resources available to meet the needs of a particular sector of the market that caters to. In a nutshell, helps companies to identify potential customers and direct them - which, in turn, translates into an efficient use of resources. Market division is carried out using one of the five strategies of segmentation

» Behavior segmentation

» Utility segmentation

» Segmentation psychographic

» Geographic segmentation

» Demographic segmentation

In the case of the geographic segmentation, market is divided into different geographical regions. It helps a company dedicated to air cooling systems, identify and focus on the tropical market in which consumers are expected to buy air coolers, rather than go to cold regions where air coolers are of no.

Demographic segmentation

Demographic segmentation is, basically, the market segmentation executed through the adoption of various demographic factors such as age, gender, social class, etc, into consideration. ('Demographic' the word is derived from "demographics" of the word, i.e., the study of the population.) It helps the Organization divided the market into several segments or groups, each with a common variable, and point to each of these groups to improve the performance of the organization. This strategy of market segmentation aims to understand the potential market, and take the necessary measures to ensure that the needs of a population group that are met.

Variables

Segmentation variables are essentially the factors that help the organization in the determination of the target group. Demographic segmentation, variables are mainly composed of factors demographics such as age, ethnicity, occupation, etc then we have given a list of variables that are commonly used to divide the market into smaller segments.

» Age

» Sex

» Family size

» Family life cycle

» Rent

» Occupation

» Education

» Ethnicity

» Nationality

» Religion

» Social norms

Based on these variables, an organization can decide which group they should be addressed. An organization that focuses on sports cars, for example, will need to refer to persons of the age group 20-40. On the other hand, the magazine a publication of the women's organization has to focus on white to the female population. It helps these companies to identify their respective consumer and efficient to meet their needs.

Advantages and disadvantages

If the demographic segmentation is one of the most popular methods in today's market segmentation, is because of certain benefits that make it the first choice for various organizations. The two major advantages of this segmentation strategy are:

The organization can categorize the needs of consumers on the basis of factors demographics such as age, gender, etc.

Its variables are much easier to obtain and measure, in comparison with other strategies of segmentation variables.

One of the disadvantages highlighted in this segmentation strategy of market, which is often cited by critics, is the one-dimensional approach that follows it. In this segmentation strategy, it is generally believed that all individuals who belong to a particular "group" have the same needs - which is not necessarily the case. If an organization is using only demographic segmentation, it is more likely to be vulnerable to competitors.

Demographic segmentation helps the Organization to understand customers and their needs. In a market driven by intense competition, market segmentation analysis can be of great help. Basically, the market segmentation is based on the simple fact that you can not please all consumers with a single product, and therefore you have to identify the market pot

Tips for Tea Marketing

Ever recall a shopping list which had items in the grocery listed as Dole bananas, Starbucks coffee and Danon yogurt. This typical list has so many brand names that we have unconsciously associated with these raw products. So how in the world do these companies successfully market these products and form a trademark on our mind? Their marketing strategies are so unique that it not only creates a brand value, but also has consumers in the form of fans attached to their products. As there are so many big corporations involved in marketing these products, it's extremely important to keep innovating the marketing plan and keep launching new products in order to gain a competitive edge over the competitors.

The strategy basically involves using marketing techniques like positioning tactics and various promotional strategies to market this basic product. Tea since ancient times has been used for beauty treatments, as a soothing agent, as dye colors used on clothes and as a cleaning agent. Even now, the ever expanding tea market continues to grow despite hitting saturation. Tea has always been termed as instant wisdom. So how do marketers explore this potion of wisdom to their benefit? Tea also has medicinal properties and is favored more than coffee now in the market. Also there are varieties in the tea market - black tea, green tea, ready-to-drink tea and fruit teas, which have already captured a major segment of the market. Following are some tips for tea marketing:

Researching the Market
It's necessary that you decide on the market you want your product to sell. Through market segmentation, you can divide the market on the basis of geographic, demographic, behavioral, psychographic factors and on price too. After segmentation, your goal will be more well-defined and it will help you to reach your customer in a more refined manner. Also, new strategies like finding out the motivation factor and social characteristics in the target market can serve as an answer to searching and reaching your goals. In your research, it is also necessary to conduct a survey and rely on the primary data, which will help you decide the future course of action related to your marketing goals.

Analyzing the Product through Matrices
Once you have zeroed in on the market, the next step is creating a matrix according to the needs of your product. This analysis will help you in identifying your product while measuring the relative market share and market growth. By identifying, your product can be classified as high earner or low earner.

Finding Suitable Channels of Promotion
After you have found your niche market, it's important to select a promotional tool that is effective in conveying the message. Promotional tools include television, radio, sponsorships, Internet and other advertising mediums. Also, the cost incurred while promoting the product should be taken into account. The new trend of promotion is making your presence felt at the new social websites.

Finding the Perfect Location
After choosing a suitable channel for promotion, location plays an important role. The product needs a strong distribution channel where your product can easily reach the customer at low cost. Also before the product is extensively advertised, the product should be before the customer's eyes. As it is a convenience product which is purchased through minimum effort, the product should be available at all possible locations. The plus point here is that as the customer doesn't have any strong preferences, new products are easily acceptable by the customer. This point can serve as an added advantage while marketing the product.

Marketing Audit
After your product has been successfully launched, it's time to keep a tab on your marketing plans, sales and profits. Through auditing techniques, one can find out the deviations between actual and expected performance. In this cut throat competition, marketing strategies need to be changed after a period of time. Therefore, auditing serves the purpose by measuring the performance of every plan and alerting the marketer if any changes are to be made.

In America, where convenience is of utmost priority, ready-to-drink tea markets have emerged as the best choice of customers. Now is the time for new innovations as many market segments have saturated. The positive aspect about tea market is that because of its positive health benefits, its market is never going to be extinct. In fact, declining sales in soft drinks and coffee has boosted the market for tea. Tea is finding its uses in many industries too, so there are more niche markets that can be developed. So the saying, "It's not your cup of tea" is certainly going to change with new product lines, new brands and new packaging.

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.