Direct and Online Marketing – the New Marketing Model Essay

Direct and Online Marketing – the New Marketing Model Essay.


With the growth of the Internet community and the limitless possibilities the Internet gives to the single user, it didn’t take long before someone realized that the World Wide Web is a really good place for the commercial entrepreneur. So, very quickly the online market was born, offering almost all kinds of goods to be purchased and delivered to your door. This new online sensation was called electronic commerce, or ecommerce.

E-commerce is a complex term referring to the process of selling and buying products and services over the Internet or other electronic systems.

Considered as the sales aspect of the e-business, the electronic commerce has revolutionized trade as a routine activity for the contemporary man by bringing the marketplace to your home or the office, thus saving you time and efforts.

The development of e-commerce has given birth to new terms such as electronic funds transfer, online transaction processing, electronic data interchange (EDI), Internet marketing, automated data collection systems, etc.

They all designate certain key components of the sophisticated e-commerce system.

The majority of processes running within the e-commerce system are carried out on the World Wide Web. It is on the web where goods and services are presented through variously designed e-commerce websites to match the taste of a particular target audience. From there customers can order the desired items and pay for them in a variety of supported e-payment options such as credit cards, PayPal, etc. Certain e-commerce operations are executed via email as well. These may include sending order placement confirmations or electronic invoice notifications to the buyer’s personal mailbox after a particular purchase.

Depending on the nature of the offered products and services, ecommerce operations may involve virtual and physical items. Due to the increasing use of the Internet in our daily lives, the percentage of the virtual items distributed through ecommerce is rapidly growing. These include services like buying admission to limited access websites or electronic versions of newspapers and magazines, online gaming, etc. Nevertheless, the majority of e-commerce transactions are still related to the purchase and transportation of physical items.

As far as the parties involved in the online transaction process are concerned, ecommerce can be thought of as being business-to-consumer, more popular as B2C, and business-to-business, also known as B2B. The B2C ecommerce, conducted between business entities and consumers, includes all online stores (e-shops) offering retail products and services to end customers such as flower stores, shoe stores, furniture stores, etc. The B2B commerce, on the other hand, takes place between business entities only, such as wholesalers and retailers, on not that widely popular web stores.

The rapid expansion of ecommerce has made it possible for almost all big retail companies to set up their own online stores with regularly updated content. Thus, it is now easier than ever to obtain an item from the latest collection of your favorite clothes brand, or be among the first to take advantage of a starting clearance campaign. Moreover, the ecommerce fashion is gradually ‘infecting’ smaller retail companies, which find it as a good chance to expand their reach to potential customers and increase the selling volumes. This trend is stimulated by the attractive low-cost ecommerce hosting services offered by different hosts on the web.


Online marketing, also known as online advertisement, internet marketing, online marketing or e-marketing, is the marketing and promotion of products or services over the Internet. Online advertising is a form of promotion that uses the Internet and World Wide Web to deliver marketing messages to attract customers.


* Search Engine Optimization (SEO) is the process of affecting the visibility of a website or a web page in a search engine’s “natural” or un-paid (“organic”) search results. In general, the earlier (or higher ranked on the search results page), and more frequently a site appears in the search results list, the more visitors it will receive from the search engine’s users. SEO may target different kinds of search, including image search, local search, video search, academic search, news search and industry-specific vertical search engines.

As an Internet marketing strategy, SEO considers how search engines work, what people search for, the actual search terms or keywords typed into search engines and which search engines are preferred by their targeted audience. Optimizing a website may involve editing its content, HTML and associated coding to both increase its relevance to specific keywords and to remove barriers to the indexing activities of search engines. Promoting a site to increase the number of backlinks, or inbound links, is another SEO tactic. The plural of the abbreviation SEO can refer to “search engine optimizers,” those who provide SEO service.

* Pay-Per-Click Advertising (also called cost per click) is an Internet advertising model used to direct traffic to websites, where advertisers pay the publisher (typically a website owner) when the ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system. PPC “display” advertisements, also known as “banner” ads, are shown on web sites or search engine results with related content that have agreed to show ads. In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site, PPC implements the so-called affiliate model that provides purchase opportunities wherever people may be surfing.

It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites. The affiliates provide purchase-point click-through to the merchant. It is a pay-for-performance model: If an affiliate does not generate sales, it represents no cost to the merchant. Variations include banner exchange, pay-per-click, and revenue sharing programs. Websites that utilize PPC ads will display an advertisement when a keyword query matches an advertiser’s keyword list, or when a content site displays relevant content.

Such advertisements are called sponsored links or sponsored ads, and appear adjacent to, above, or beneath organic results on search engine results pages, or anywhere a web developer chooses on a content site. Among PPC providers, Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter used to be the three largest network operators, and all three operate under a bid-based model.

In 2010, Yahoo and Microsoft launched their combined effort against Google and Microsoft’s Bing began to be the search engine that Yahoo used to provide its search results. Since they joined forces, their PPC platform was renamed AdCenter. Their combined network of third party sites that allow AdCenter ads to populate banner and text ads on their site is called BingAds. The PPC advertising model is open to abuse through click fraud, although Google and others have implemented automated systems to guard against abusive clicks by competitors or corrupt web developers.

* Email Marketing is directly marketing a commercial message to a group of people using email. In its broadest sense, every email sent to a potential or current customer could be considered email marketing. It usually involves using email to send ads, request business, or solicit sales or donations, and is meant to build loyalty, trust, or brand awareness. Email marketing can be done to either cold lists or current customer database.

Broadly, the term is usually used to refer to: * Sending email messages with the purpose of enhancing the relationship of a merchant with its current or previous customers, to encourage customer loyalty and repeat business, * Sending email messages with the purpose of acquiring new customers or convincing current customers to purchase something immediately, * Adding advertisements to email messages sent by other companies to their customers Researchers estimate that United States firms alone spent US $1.51 billion on email marketing in 2011 and will grow to $2.468 billion by 2016.

* Affiliate Marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought
about by the affiliate’s own marketing efforts. The industry has four core players: the merchant (also known as ‘retailer’ or ‘brand’), the network (that contains offers for the affiliate to choose from and also takes care of the payments), the publisher (also known as ‘the affiliate’), and the customer. The market has grown in complexity to warrant a secondary tier of players, including affiliate management agencies, super-affiliates and specialized third party vendors. Affiliate marketing overlaps with other Internet marketing methods to some degree, because affiliates often use regular advertising methods. Those methods include organic search engine optimization (SEO), paid search engine marketing (PPC – Pay Per Click), e-mail marketing, and in some sense display advertising.

On the other hand, affiliates sometimes use less orthodox techniques, such as publishing reviews of products or services offered by a partner. Affiliate marketing is commonly confused with referral marketing, as both forms of marketing use third parties to drive sales to the retailer. However, both are distinct forms of marketing and the main difference between them is that affiliate marketing relies purely on financial motivations to drive sales while referral marketing relies on trust and personal relationships to drive sales. Affiliate marketing is frequently overlooked by advertisers. While search engines, e-mail, and website syndication capture much of the attention of online retailers, affiliate marketing carries a much lower profile. Still, affiliates continue to play a significant role in e-retailers’ marketing strategies.

* Display Advertising is a type of advertising that typically contains text (i.e., copy), logos, photographs or other images, location maps, and similar items. In periodicals, display advertising can appear on the same page as, or on the page adjacent to, general editorial content. In contrast, classified advertising generally appears in a distinct section, was traditionally text-only, and was available in a limited selection of typefaces. Display advertisements are not required to contain images, audio, or video: Textual advertisements are also used where text may be more appropriate or more effective. An example of textual advertisements is commercial messages sent to mobile device users, or email. One common form of display advertising involves billboards. Posters, fliers, transit cards, tents, scale models are examples of display advertising.. Display advertising appears on web pages in many forms, including web banners. Banner ad standards continue to evolve.

* Blogging. A weblog, also called a blog, is a journal that is maintained by a blogger and contains information that is instantly published to their blog website. Blogging is a very popular activity. The number of online users creating and maintaining blogs has increased dramatically over the past year. The number Internet users who read these blogs has also shot up, with some blogs boasting thousands, even millions of daily dedicated readers. Blog marketing is any process that publicizes or advertises a website, business, brand or service via the medium of blogs. This includes, but is not limited to marketing via ads placed on blogs, recommendations and reviews by the blogger, promotion via entries on third party blogs and cross-syndication of information across multiple blogs.

* Community Building. An online community is a virtual community that exists online and whose members enable its existence through taking part in membership ritual. An online community can take the form of an information system where anyone can post content, such as a Bulletin board system or one where only a restricted number of people can initiate posts, such as Weblogs. Online communities have also become a supplemental form of communication between people who know each other primarily in real life. Many means are used in social separately or in combination, including text-based chat rooms and forums that use voice, video text or avatars. Significant socio-technical change may have resulted from the proliferation of such Internet-based social networks.

* Social Media Marketing refers to the process of gaining website traffic or attention through social media sites. Social media marketing programs usually center on efforts to create content that attracts attention and encourages readers to share it with their social networks. A corporate message spreads from user to user and presumably resonates because it appears to come from a trusted, third-party source, as opposed to the brand or company itself. Hence, this form of marketing is driven by word-of-mouth, meaning it results in earned media rather than paid media. Social media has become a platform that is easily accessible to anyone with internet access. Increased communication for organizations fosters brand awareness and often, improved customer service.

Additionally, social media serves as a relatively inexpensive platform for organizations to implement marketing campaigns. Social media marketing involves the use of social networks, COBRAs and eWOM to successfully advertise online. Social networks such as Facebook and Twitter provide advertisers with information about the likes and dislikes of their consumers. This technique is crucial, as it provides the businesses with a “target audience”. With social networks, information relevant to the user’s likes is available to businesses; who then advertise accordingly. Consumer’s online brand related activities (COBRAs) is another method used by advertisers to promote their products.

An activity such as uploading a picture of your “new Converse sneakers to Facebook” is an example of a COBRA. Another technique for social media marketing is electronic word of mouth (eWOM). Electronic recommendations and appraisals are a convenient manner to have a product promoted via “consumer-to-consumer interactions”. An example of eWOM would be an online hotel review; the hotel company can have two possible outcomes based on their service. A good service would result in a positive review which gets the hotel free advertisement via social media; however a poor service will result in a negative consumer review which can potentially ruin the company’s reputation.


These are some of the many advantages that online marketing offers over traditional media outlets:

1. Reduced Cost The starting cost of online marketing is only a fraction of the thousands of dollars that Yellow Pages, television and radio ads cost. For example, you can get a free listing on Google Local that will be just as effective as a costly online Yellow Pages ad. In addition, while traditional ads may only run for a short time, a search engine optimization campaign can deliver long-term results. You can also save money with online Pay-Per-Click advertising where it is easy to experiment with small ad volumes until you perfect your strategy and then expand your marketing budget when you are assured of a positive sales return.

2. Everything Is Measurable When you place an ad in the newspaper or a magazine, it can be difficult to assess the direct sales impact for your business. With online marketing, everything can be tracked and illustrated in detailed graphs that illustrate traffic growth, leads and sales conversions from your specific search marketing campaigns. Using a free traffic analysis tool like Google Analytics, it is easy to calculate your return on investment (ROI) so you can appreciate the excellent value generated from your online marketing budget.

3. Brand Engagement In the crowded market, you need to establish and maintain positive brand awareness and client loyalty. Apart from word-of-mouth and leveraging your personal relationships with your established clients, a website is the most important marketing tool a business can have. A regularly updated website with well-written content that maintains people’s interest is essential to showing people exactly how your business is distinctive – and how you offer the best value to your clients.

4. Demographic Targeting The degree to which an online marketing campaign can target and measure the response from specific demographics and regions is often astonishing to business owners who normally use traditional media. New demographic prediction and online advertising platforms allow you to specifically target the specific consumer demographics most likely to buy your products. In particular, if you want to target young people between the ages of 16-30, you’ll need an online marketing strategy to reach them where they spend the bulk of their time: On the Internet and on social media sites.

5. Real-Time Results With online marketing you don’t have to wait weeks to see a significant boost in your business. With a paid search marketing campaign you can experience real-time results that enable you to fine-tune your marketing message to achieve your desired effect. If your marketing strategy isn’t working effectively, real-time monitoring tools allow you to easily pin-point exactly where you are going wrong.

6. Easily Refine Your Strategy Using online marketing analytics and tracking tools you can test conversion rates at a fraction of the cost of a traditional media campaign. Online marketing levels the playing field and allows savvy small businesses to compete in competitive niches that previously would only be open to large corporations and their massive marketing budgets. If your marketing strategy is not bringing in the return on investment (ROI) that you desire, you can work to perfect it without having to launch an expensive new campaign as would be required with most traditional media outlets.

7. Long-Term Exposure The benefit of an organic search marketing campaign that optimizes a website for specific keywords is that you will achieve a long-term return on your investment. Once your website’s visibility is well-established with search engines, it is easy to do regular low-cost maintenance of your strategy. The early adopters of new online marketing platforms like social media marketing will have a significant head start over their competition.

8. Product Information Today’s savvy consumers want to compare reviews and opinions of friends, trusted bloggers and industry experts before they make a decision. If you can provide quality, linkable information that is what people are looking for, then the next step of converting users into paying clients can be very easy. With social media networks like Facebook and Twitter re-enforcing the value of positive word-of-mouth exposure, trust is more important than ever in the marketing field.

9. Less Intrusive Most savvy consumers dislike intrusive traditional marketing methods like direct mailing, print ads and television advertisements. When someone buys a newspaper or magazine, they want to read interesting articles not be bombarded with irrelevant ads. While mediums like television can still be useful for maintaining awareness of large corporate brands, it is not an effective medium for most small and medium-size businesses. With online marketing, you can target consumers precisely when they are searching for products and services that your business can provide.

10. Holds Their Attention When people read the newspaper or a magazine they may scan over the advertisements beside the article but there is no way to engage their attention. With online marketing you can encourage them to take action, visit your website and read about your products and services which results in vastly increased “stickiness” of your marketing message.

Direct and Online Marketing – the New Marketing Model Essay

Designing and Managing Integrated Marketing Channels Essay

Designing and Managing Integrated Marketing Channels Essay.

Most manufacturers of products use marketing intermediaries to sell their products to the consumers. The marketing intermediaries make up a marketing channel (distribution channel or a trade channel). The marketing channel overcomes the time, place, and possession gaps that separate gods and services from those who need or want them. A normal way of functioning for a company is to procure raw materials, use its expertise in creating the product and then distribute to the customer. Companies have to convert this supply chain into a value network as to develop and maintain partnership with different stakeholders.

Core competency for a company lies in developing a product which satisfies a particular need of the market. A company if it decides to sell a product on its own than it is diverting from main line business resulting in operational difficulties. Marketing channel is ears and eyes of companies in the market.

They provide companies with valuable information of customers, competitors and other players in the market. Dell’s computer exclusively uses direct marketing (the Internet and express mail service) in reaching customers are different of marketing channel depending upon the number intermediaries like retailer, wholesaler and distributor. Channels are also used by companies providing services; for example, hospital and fire station have to strategically locate for people to reach without considerable efforts.

In designing marketing channel companies analyze customer needs and preference for a given product. Further marketing channel should fall in line with overall objectives of the company in cost and desired output level. Companies then need to explore various marketing channels like direct marketing, tele-marketing, direct mail, etc. to find the right fit to reach the customer. Each channel short listed has to be evaluated on operational, cost effective and flexibility criteria. Once the channel is designed, companies look forward to selecting partners with characteristics, which have a positive impact for the product. Channel members need to get the right amount of training as to full understand their role with respect to customer and product. Companies need to develop a mechanism as to monitor functioning of marketing channels on criteria based on total customer satisfaction. After reviewing marketing channel companies should modify them to improve functioning and productivity.

Companies are looking forward to innovating business functioning as to stand up to the competition and changing market scenario. This has seen rise different types of marketing channel. In a vertical marketing channel, the traditional producer-wholesaler-retailer becomes one functional unit. This can be achieved through franchise or single ownership. In horizontal marketing channel two or more un-related agencies combine to exploit the market opportunities, for example, banks in super markets. In multi-channel marketing systems, companies use different marketing channels to reach different customer base or segment.

In vertical channel conflicts are between members of same channel. In horizontal channel conflicts are between similar service providers in a different channel. In multi-channel conflict arise when a different channel serves the same market. The first step in conflict resolution is to identify the cause for the conflict. Next step is to manage the conflict. This can be done by setting up clear mandate for each member and their role in the overall objective of the company. Further, joint membership, diplomacy and exchange of team members are other ways in resolving conflicts.

Companies need to design and manage marketing channels in such a way that they are always able to deliver value to customer.

Designing and Managing Integrated Marketing Channels Essay

Apple Inc Marketing Report Essay

Apple Inc Marketing Report Essay.

Apple Inc. is an American multinational corporation, which designs, manufactures and sells personal computers, consumer electronics and software, and provides related services. The business has experienced a tremendous growth from 2001 when it has introduced its iPod mp3 player. Apple Inc. is considered to be the most successful electronics company in the world.


Executive Summary

Marketing Mix Today, Apple unveiled its new product, the iPad. The much publicized rumour about a tablet created by Apple is now a reality. Tablet pc’s have been around for a long time, but what makes the iPad different from the other market offerings? What strategy does Apple have in place in order to make this a runaway hit like its iPhone and iPod product lines? We’ll use the marketing mix (4 P’s) to see how Apple strategized its goal to make the iPad a bestseller.

Marketing Mix is the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.

Price, product, place and promotion are the 4 P’s or components that make up a marketing mix.


Apple sells a variety of electronic devices. In 2010, Apple introduced their first tablet, iPad. Ipad is a tablet device that has several features. It looks like a bigger iPhone or iPod Touch and possess a led touch screen interface. Its dimensions are 9.56 in x 7.47 in. It is also very thin and has a battery life of ten hours. This product has the ability to surf the internet, listen and purchase music, watch videos, view photos, read e-mail, read and purchase e-books and execute multiple applications. In fact, the multiple applications available for the iPhone will be fully compatible with the iPad! There will be different versions of the iPad at launch with different hard drive capacities and 3g capability. There will be a 16 GB, 32 GB, and 64 GB variants. Also all iPads will have Wi-Fi and are wireless-n capable. The iPad will also feature the latest Bluetooth profile and will have an on-screen keyboard for inputs.


The base model of IPad (16 GB) without 3g capability is the cheapest at $499, 32 GB at $699, this is I pad and I phone 5 prices and 64 GB will retail for $699. If a customer wants 3G capability they will have to pay an additional $130 on top of the base price. The consumer also has the option to sign up for AT&T data plan that allows them to have access to the internet virtually anywhere and in areas without Wi-Fi connections. The data plan is two tiered: the customer has a choice between $14.99/month for 250mb and $29.99/month for unlimited access. The data plan will also allow the consumer to access various AT&T hotspots for free.

Unlike the iPhone, the customer will not be locked into multi-year contractual obligation and they can terminate it at any time. As far as discounts go, Apple is known for charging higher, premium prices however, they usually offer $100 off certain products to college and University students. They also do special bundles for purchasing certain products during different times of the year. For example, I purchased a MacBook Pro during the summer and they had a promotion that gave me a free iPod and a free printer plus the $100 discount because I was a University student. They have done the same promotion for the previous two years as well.

Place There are multiple Apple stores across the Australia, 20 of them, in which all the apple products will be sold. Apple’s retail stores ensure high quality customer experience; provide direct contact with knowledgeable staff and increases brand awareness. Customers can also purchase the products online in Apple’s official website. Best Buy, one of Apple’s partners, also sells Apple products and also has a large retail footprint in the Australia. Amazon, one of the largest online retailers, also carries Apple products. Apple should gauge consumer demand and produce enough in order to satisfy the market.

Promotion In the past two decades, Apple has become well known for its advertisement. Its most significant ad campaigns include the “1984” Super Bowl commercial, the 1990s Think Different campaign, and the “iPod people” of the 2000s. Other than that Apple Inc. also held press conference to before each products launch debut the products. Several of the major techblogs, forums and websites also invited to cover the event. Given Apple’s track record of heavy promotion and advertisement of its marquee products, the future apple new product has a high probability of getting the same advertising treatment. The Mac, Iphone 5 and iPad is already highlighted on the front page of Apple website and the hour long keynote by Steve Jobs regarding the Mac, IPhone 5 and iPad are also available on the website.

Apple Inc Marketing Report Essay

Under Armour Working to Stay on Top of Its Game Essay

Under Armour Working to Stay on Top of Its Game Essay.

Target in men, women and youth. (Under Armour’s diverse product line for men, women, and youth is complex, but the message is simple: wear HeatGear when it’s hot, ColdGear when it’s cold, and AllSeasonGear between the extremes.)

Cultural differences. (Product transcends cultural differences and it is appealing to many athletes, regardless of nationality; Under Armour is puisuing a worldwide scope via regionalization.)

Economic Increase economic condition by improving the sales balance and reducing the seasonal variability in sales, inventory efforts and distribution.

Economic risk. (The degree of economic risk associated with the premium pricing and Under Armour is feeling the effects of the current declining retail consumer market that is affecting the broader economy.)

Current economic downturn challenges Under Armour to compete against major rivals.

Political/ Legal The company works with multiple licensees directly throughout the product development process to ensure that the products are aligned with its brand and quality expectations. Under Armour does not have a patent on any of the materials use in its products.

Therefore, it needs to be cautious in its licensing agreements so companies do not steal its know-how and introduce their own versions.

Under Armour signed a five- year partnership agreement in April 2009 with Cal Ripken, Jr. The intellectual property rights laws and regulations of countries in the global market vary dramatically.

Sociocultural Under Armour mission’s is to enhance the experience for all athletes by applying passion, science, and the relentless pursuit of innovation to create clothing with temperature control, comfort, and flexibility. Under Armour has reached regular athletes, active outdoor enthusiasts, elite tactical professionals, and active lifestyle consumers.

Plank’s shirt truly did regulate athletes’ body temperatures, lending to improved performance.

Under Armour had five lines of clothing made for every climate. Footwear product line designed for high performance through a highly breathable and lightweight design.

Global Under Armour is able to successfully penetrate the sports apparel market by using the image and influence of: domestic and international professional teams, collegiate teams, Olympians, and individuals.

Under Armour’s products are sold worldwide, with the company’s headquarters located in the United States and support offices in Hong Kong and Guangzhou, China.

Under Armour sells products in 13 countries, including in-house distribution in the United Kingdom, Germany, and France. Sales in other Western European and Asian countries are done through partnerships and third-party distributors.

Under Armour do not have to contend with the challenges associated with establishing manufacturing plants in foreign countries.

Technology Plank created a synthetic shirt made of high-tech material that had a snug fit designed to feel like a second skin. Products are offered through the company website. For the first ten years of its existence, the company was able to sustain operations by using “off the shelf” software programs.

Under Armour invested in a new SAP system. This system is a key to the company’s ability to add products to list of offerings, as it allows Under Armour to manage a more diverse inventory and to ship directly to distributors.

Physical Environment When Plank was a football player he grew tired of having to change his damp, heavy t-shirt under his jersey, so he set out to create a unique product that would meet the needs of all athletes.

Though the materials and technology used to create its products are not exclusive, by implementing an effective corporate strategy Under Armour has been able to fashion itself as a profitable business and remain a key player among competitors.

Use Porter’s Five Forces Model to analyze the apparel, footwear, and equipment industry in the US.

Porter’s Five Forces Model Medium threat to new entry Under Armour operates in a highly competitive industry where the dominant competitors have significant breadth of market coverage that is difficult to find an entry point. The main competitors have been advertising and establishing distribution channels, marketing agreements, and recognition for many years. High threats of substitute products

Under Armour’s major competitors are Nike and Adidas with similar or competing product offerings.Under Armour does not have a patent on any of the materials used in its products.

High intensity of rivalry among competitors There is stiff competition in the athletic apparel industry with companies of various sizes employing different strategies in order to attract consumers to their product and brand. The larger companies continuously increase competition by spending large amounts of money on product innovations, advertising, and sponsorship.

High bargaining power of suppliers Under Armour’s customers is willing to pay the price for its products because their products have value in it.

Some of it suppliers are commodities and thus are subject to price fluctuations; for example, petroleum-based materials are used in Under Armou’s products and the petroleum industry has experienced significant swings in price and relative availability in recent months and years.

Under Armour relies heavily on suppliers and manufacturers outside of the United States. Seventy to 75 percent of the fabric used in its products comes from only six suppliers, lending to Under Armour’s weak position relative to its suppliers.

Low bargaining power of buyers Under Armour has developed unique products that consumers value. The customer is willing to pay the price because the Under Armour product has value in it.

Under Armour Working to Stay on Top of Its Game Essay

Market penetration Market development Essay

Market penetration Market development Essay.

Beiersdorf has expanded in each possible direction. Market penetration is demonstrated by NIVEA Lip Care products, which have been extended with new variants. The latest of these (Pearl and Shine) became the market leader in 2003. An example of product development is Visage Soft Facial Cleansing Wipes. Market research showed that women were looking for a new way to clean and tone their skin.

The Wipes quickly took the number one spot in the UK wipes market market. Market development is demonstrated by the launch of NIVEA deodorant into the UK and new markets in Europe.

The UK launch was into a market dominated by Unilever. Following market research, NIVEA entered this market in a more specialist skincaring segment, positioning the deodorant so that it had the same values as the NIVEA cream. Diversification is shown by the development of NIVEA FOR MEN. This built on the strong brand. It recognised that men also used facecare products. The product range included shaving foam and gel, aftershave and moisturising lotion.

Introduction Beiersdorf is the skincare business behind leading brands such as NIVEA, Atrixo and Elastoplast. Beiersdorf’s first product was NIVEA Cream, the first modern cosmetic product, now used by an estimated one billion people worldwide. Beiersdorf has helped to stay ahead of competition over the last ten years by growing the business.

Growth Business growth can be measured by how it increases sales turnover, profits, market share, number and range of products, geographical spread or its number of employees. Businesses can grow from inside, by increasing their product range, or from outside, by acquiring other businesses. Beiersdorf has concentrated on the first route, called organic growth. It has developed new products; established in new countries and expanded market share in its established markets. Its growth focuses on a relatively small number of key brands.

Conclusion Beiersdorf is Europe’s leading skincare company. It has competed effectively by continually growing both its products and its markets.

Ansoff ’s matrix Business writer Igor Ansoff suggested four possible directions for growth. Businesses can grow by selling:

◗ More of their present products in present markets – market penetration.

◗ New products into present markets – product development.

◗ More of their present products into new markets – market development.

◗ New products into new markets – diversification. Ansoff showed these in a table. Any of these, or a combination, can be used for expansion.

Market penetration Market development Essay

Victoria Secret Marketing Essay

Victoria Secret Marketing Essay.

Victoria’s Secret is one of the biggest brands in the U. S. lingerie market. There primary business is to sell intimate apparel business focus on comfort and fit with an emphasis on glamor. As of now, Victoria’s Secret specializes in lingerie, swimwear, beauty products, sleepwear, hosiery, etc. This has helped the brand in developing a unique image for its product. Victoria’s Secret parent company is the Limited Brands Company. It is based out of Reynoldsburg, Ohio. Currently operating 1,017 stores in 49 states, Puerto Rico, and Canada, the company annually generates around $4,564,000,000 of revenue in their stores.

With the combination of catalogue and VictoriasSecret. com, generates annual revenue of $1,557,000,000 (Brands, L). The U. S. economic growth has been slow since the recession and is not likely to reach the pre-recession rates any time soon. But there has been some slight improvement in consumer confidence and lower unemployment which should help Victoria’s Secret comparable store sales.

Inflation has been another factor that drives revenue growth for same sales volumes and will aid growth in the brand’s revenue per square feet.

Going forward, the U. S. nnual GDP growth rate and inflation rate are expected to be around 1. 4% and 2% respectively. This gives a nominal GDP growth rate of about 3. 4% for the long term and the apparel sales will continue to shift online due to growing usage of Internet and proliferation of mobile devices. As a result, we make a conservative assumption that Victoria’s Secret’s revenue per square feet will increase by 2%-2. 5% annually, on the account of these macroeconomic factors. Over the past few years, Victoria’s Secret has expanded its product offerings outside the lingerie realm.

They also offer shoes, evening wear, swimwear, sportswear, loungewear, accessories, makeup, handbags, luggage and fragrances. We can expect Victoria’s Secret to continue to add different categories in the future to keep up with the competition. With increased product offerings at the existing stores, the brand’s revenue has increased immensely. Victoria’s Secret launched a new lifestyle brand PINK, which primarily targets college girls. Since Victoria’s Secret’s is limited in this demographic, there is a huge opportunity for expansion. About 25% of the U. S. emale population between 15-34 years falls under the college going age group (Mau,2011). Apart from opening exclusive PINK stores, Victoria’s Secret is adding full line merchandise of PINK to its existing stores, which should aid the growth in its revenue.

With increasing Competition as The Gap, Inc. , Abercrombie &Fitch and American Eagle Outfitters forces Victoria’s Secret to offer more discounts on its basic products. There competitive strength is Strengths of the Digital Marketing strategy that will be implemented include a more cohesive brand image. By updating the PINK segment of the Victoriassecret. om website, a more cohesive brand image will be formed. This will increase brand loyalty among their consumers, and further set them apart from their competitors. Another strength is that the Check In Store option will put them on pace with some of their competitors. Aerie already offers a check in store option on their website, and Victoria’s Secret needs to do the same in order to stay competitive. Abercrombie & Fitch and American Eagle Outfitters both specialize in loungewear, lotions, body products, lingerie, and undergarments and very active in social media as well. Recently, Abercrombie pushed users to “Like” their Facebook page.

By doing this, the consumer would receive a text message rewarding them with free shipping. (Johnson, 2012) Victoria’s Secret currently doesn’t offer any “rewards” via their social media pages. By having a Check In Store option, online consumers will quickly become in store consumers. The success of the Check In Store tool could be measured by the use of metrics. Metrics that could be used include online surveys of consumer satisfaction with the Check In Store option. Victoria’s Secret could also measure the success of the Check In Store option by analyzing the shopping carts.

If consumers are adding items to their shopping carts, but purchasing less frequently than before, they are most likely purchasing the product in store now. Marketing Strategy Roy Raymond, founder of Victoria’s Secret, originally targeted gentleman to make them feel comfortable while shopping for lingerie for gifts. (Secret. Ezinemark. com) Today, Victoria’s Secret’s target market is the middle class woman, or a man shopping for the middle class woman. To attract the younger crowd, such as college age woman, Victoria’s Secret developed PINK. The bright colors, trendy prints and more casual look nspires young teens and high school age girls to shop at PINK.

Victoria’s Secret’s marketing strategy is to capitalize on using high profile models (including famous singers), Social Media (including email and mobile), Fashion shows, Promotional offers, Television commercials, online deals, Semi Annual Sale, coupons and loyal customers with their VS All Access. Victoria’s Secret employed relatable and notable supermodels such as Tyra Banks, Heidi Klum, Karolina Kurkova, Gisele Bundchen and Miranda Kerr as their face for “Victoria’s Secret Angels. They are very selective on who they choose to be an Angel (model) for them. They choose models that are beautiful and have great bodies that appeal to woman and men. By using these models, Victoria’s Secret gives value to the consumer, helping them to believe that they could look that way in their garments or by using their beauty products. Victoria’s Secret creates the idea of beauty and fantasy to their hopeful consumers. Additionally, well known music artists such as Rihanna featured in the swim collection music videos, supporting the success of this campaign (Howard).

Such campaigns have been successful in the past and are likely to strengthen Victoria’s Secret’s brand image in the future as well. This type of attention for famous singers can produce great revenue for them, especially Rihanna who is current and popular amongst the younger generation. One strength of Victoria’s Secret’s current marketing strategy is that they are utilizing all of their social media platforms. They are extremely active in social media such as Facebook, Twitter, Pinterest and YouTube. Their Facebook page is the 2nd most popular retail store on Facebook with 18. million fans. It’s the 18th most popular brand on Facebook (Wakefield, 2012). Victoria’s Secret also relies heavily on the email market. Anytime a new style of bra, underwear, sweats, and beauty products are produced, they “email blast” their customers, by sending them multiple emails a day.

As far as mobile marketing goes, Victoria’s Secret has an application for Android, IPhone, IPad, and IPod, that allows consumers to shop by these mobile devices. They also use texts alerts that are sent directly to a customer’s cell phone. On their website (victoriassecret. om), numerous offers will appear, including $25 off your purchase, free shipping, etc. Currently the website is offering free shipping with a $100 purchase offer code. They are also currently hosting a 20% off clearance items on their website. These types of offers are offer often, creating repeat consumers. Victoria’s Secret All Access is also available on the website that offers information such as makeup tips, supermodel biographies, an insider’s look at the Victoria’s Secret fashion show and news events are shown. VS All Access gives the consumer a more personal experience with the brand.

Victoria’s Secret utilizes annual fashion shows and its supermodels to associate its brand image with beauty and class. Victoria’s Secret holds a fashion show every year that is broadcasted on CBS. These fashion shows are very popular with 9. 3 million viewer, men and women between the age ranges of 18 to 49. The fashion show typically has a $12 million budget (Mau, 2011). Every year, the day after the fashion show has been aired; Victoria’s Secret holds a promotional event in store where shoppers can receive a Victoria’s Secret Fashion Show t-shirt with a $75 purchase.

This event always energizes their business the day after the show has been aired. Victoria’s Secret is active in television advertisements as well. Their Super Bowl commercials are always very popular and sell the idea of Victoria’s Secret, rather than the product. The first Victoria’s Secret Super Bowl commercial lured more than 1,000,000 people to their website, which in turn, crashed and was shut down temporarily (Howard). Having huge sales also excites consumers. Victoria’s Secret produces a huge semi-annual sale, which they hold twice a year.

At this sale, bras and underwear are sorted into pink bins by size. The products are thoroughly reduced, and always draw a large crowd. Victoria’s Secret will often mail out a “free panty” card to their shoppers every month. This is a no purchase necessary coupon. They also email out “$10 off a bra” cards. These coupons really get the customers in the door. (Smith) Another coupon they introduce to the consumers is the scratch offs that offer up to $500 off, but consumers don’t know the amount until they checkout.

Even though this is a no purchase necessary coupon, rarely do consumers leave without purchasing something else. Financial Analysis A way that Victoria’s Secret can improve on profitability is to have a Check In Store Option on their website, along with a Pick Up in Store tab. This currently is not offered on their website, but would definitely be useful for consumers looking to try on the product before purchasing. Their PINK page on the website offers a “Find Which Store Carries Your Team’s Gear” option, but the Victoria’s Secret page does not offer it for swimsuits, bras, underwear, or any other products.

This would be a relatively easy installation for Victoria’s Secret. Stores already keep a continuous track of their inventory levels and what products they have on hand. The only cost of implementing this strategy would be to pay the Webmaster to install it on the website, and to continuously synchronize the Check In Store option with their current inventory levels. Implementing this tool to their website would tremendously help in the sales of products such as swimsuits, makeup, bras and other items that the consumer would prefer to see in person before purchasing.

Several retail stores such as The Buckle and Nordstrom’s offer guest loyalty programs. When a customer comes in and is drawn to a certain type of product, the sales associate or the store manager can let that customer know when more arrives. Nordstrom’s also does personal phone calls whenever a storewide sale is taking place. Victoria’s Secret could benefit from personalizing this shopping experience at their store. If their product selection were offered at all locations, consumers would have an easier and personal shopping experience.

If Victoria’s Secret wants to capitalize on the new brand PINK they need to offer more collegiate schools to their sweat apparel. For example, Texas is our biggest state and PINK does not carry the Texas Rangers, Texas Longhorns, or the Texas A&M line. By offering these lines in all Texas stores, Victoria’s Secret would gain more sales driven by the fans of those sports teams. Victoria’s Secret would also do well in offering a coupon or promotional offer through their social media pages. A “Like this Picture” offer would be appropriate for them to do. This would draw consumers to their social media platforms.

Victoria Secret Marketing Essay

How Subway Restaurant Can Avoid Marketing Myopia Essay

How Subway Restaurant Can Avoid Marketing Myopia Essay.

“In 1965 seventeen year old Fred Deluca borrowed $1,000 from a friend Pete Buck and suggested an idea of starting Pete’s Super Submarines in Bridgeport, Connecticut. This franchise was started to help get through college to study medicine, and in the following year they formed Doctor’s Associates Inc. to oversee operations of the restaurants as that franchise expanded. The first Subway franchised unit opened in Wallingford, Connecticut.” (

Fred Deluca and Pete Buck advertised on the radio the name Pete’s Subway to they eventually decided upon the name to Subway in 1968 as we know it today.

The first mistake they made was putting the restaurant in a poor location. Their first year of business was a learning experience and a challenge. A year later they opened their second store after realizing that visibility and marketing were some of the key factors to success. Needless to say Subway restaurants have come to be very successful franchises.

In 2012, Subway honored CHEMCO with the Social Responsibility Award.

CHEMO provides hand soap and a variety of other cleaning and sanitation supplies. “The SUBWAY Social Responsibility Award recognizes a supplier that has done the most to create sustainable practices while reducing costs and improving quality in the SUBWAY® system,” ( Marketing Myopia is managements’ failure to recognize its view of business. (Boone&Kurtz, 2013)

Subway’s mission statement is “Be the #1 Quick Service Restaurant (QSR) franchise in the world, while delivering fresh, delicious sandwiches and an exceptional experience.” Some strategies to avoid marketing Myopia are: Dispose of their soda fountain machine, since sodas are linked to childhood obesity. Subway could also hire employees whose English is more prominent. Incorporate a drive- thru. “Subway declares that one of their salads provides five servings of vegetables. While this is technically true, the vast majority of the servings are iceberg lettuce. Unfortunately, this is one of the least nutritious vegetables available. Salads have four grams of fiber.”

(, 2013). If Subways mission is to be the #1 quick service restaurant (QSR) franchise, then no one should have to wait on food to be heated in the microwave. Subway promotes itself as a “healthy alternative to greasy fast food,” and this marketing approach has proven very successful. Studies headed up by Brian Wansink, director of the Food and Brand Lab at Cornell University in Ithaca, NY, concluded that “Subway has acquired a so-called “health halo” — people give themselves “credit” for eating at Subway and indulge in extra treats when they do so.

People also underestimate the calories consumed after eating at Subway, as compared to a hamburger fast food franchise, such as McDonalds”. (, 2013) In the next ten years maybe Subway can deliver just as Pizza Hut and Dominoes. Continue to go Global. Develop a method where they can have free Wi-Fi days. Set up a KIOSK in store where customers can punch in their own orders. Develop a way the food can stay hot without the use of a microwave, perhaps solar energy (, 2013)

How Subway Restaurant Can Avoid Marketing Myopia Essay

Developing the Marketing Plan Case: Gillette Indonesia Essay

Developing the Marketing Plan Case: Gillette Indonesia Essay.


In October 1995, Chester Allan, Gillette’s country manager in Indonesia, was developing his unit’s 1996 marketing plan. Once completed, it would be forwarded to Rigoberto Effio, business director in Gillete’s Asia-Pacific group based in Singapore. Each year Effio received and approved marketing plans for the 12 countries in his region, which reached from Australia to China. Once approved by Ian Jackson, Asia-Pacific group vice president, the overall marketing plan-for the region would be reviewed subsequently, along with other regional plans, by Robert King, executive vice president of Gillette’s International Group.

Allan’s plan projected a 19% increase in blade sales in Indonesia in 1996 from 115 million to 136 million. This seemed reasonable given a 17% increase in 1995 over the previous year. With a population of almost 200 million, Indonesia represented an important country in the portfolio of markets for which Effio and Jackson were responsible. Effio wondered whether investment spending in marketing beyond the 1995 level of 12% of sales might further accelerate market development.

Given the growth rates of Gillette’s business in other Asia-Pacific countries, Effio believed that a 25% to 30% increase in blade sales could be achieved in Indonesia in 1996.


How rapidly the Indonesian market for blades and razors could or would expand. Should the Indonesian market be allowed to just move along at its own pace? If so, what would that pace be?


Gillette’s mission was to achieve worldwide leadership in its core product categories by developing marketing plan.


* The company emphasized geographic expansion along with research and development, advertising, and capital spending as drivers of growth. * Upgrade the market to higher value products and shaving systems.| * The poorer rural shavers cannot afford Gillette products and buy low-price, low-quality brands such as Tiger and Tatra. * Problems with customs clearances could impact the entire manufacturing cycle. * Shaving was still underdeveloped in Indonesia, but the incidence of shaving was increasing.


* New-product activity and entry into and development of new markets were considered essential. * Research showed that higher-income, urban consumers were increasingly shopping in supermarkets. Most sales of Gillette’s higher priced shaving products were through these outlets.| * The production team carefully planned the timing of materials inputs. Because of distribution and transportation inefficiencies, the need for buffer inventories was substantial. * with rising incomes and improved Gillette distribution and display, consumers are moving to Gillette.|


1. There was increasing awareness of Western grooming practices, especially in urban areas, as a result of exposure to foreign media and the increasing presence of multinational companies and their overseas personnel. 2. The liberalization of foreign investment policy had increased private sector involvement in the economy; the central government focused on developing infrastructure in the poorer regions and on human resources.


3. Improving education system ensured that foreign companies would be attracted to the major urban areas, fueling further growth. 4. Gillette headquarters developed television advertisements for use worldwide, with the intent that local voiceovers and local package shots would be superimposed.

Developing the Marketing Plan Case: Gillette Indonesia Essay

Introduction To Marketing Essay

Introduction To Marketing Essay.

Describe how a selected organisation uses marketing research to contribute to the development of its marketing plans In this section of the unit the investigation of the marketing research used by Kellogg’s will be shown through thorough research and evaluation also how it links in to the development of Kellogg’s marketing plans.

The Purpose of Market Research

Marketing research is what informs business’s make decisions by helping it to understand the changing dynamics of its market. This involves finding out more about customers, competitors and the overall marketing environment.

The purpose of doing this is to gather data on customers and potential customers. The pure definition of market research is systematically gathering, recording and analysing data and also about the issues relating to marketing products and services. There are two types of research’s that can be conducted:


These research can then be formed into either quantitative or qualitative
Primary Research
Primary research is data and information that the business has gathered first-hand and has not been gathered before.

Internal primary research data sources include:
Sales figures for the business’s own products
Customer data held on a central database.
External primary research methods include:
Questionnaires and Surveys
Interviews and Focus Groups
Mystery Shoppers,
And other observation techniques.
Secondary Research
Secondary research uses data and information that has been collected before, either from within the organisation which can also be seen as internal data or by another organisation which is mostly regarded to as external data.

Secondary research is sometimes referred to as ‘desk research’ and sources include:
Reports from sales and regional representatives
Previous marketing research (internal)
Trade journals and websites (external)
Books and newspapers (external)
Industry reports from industry associations and government departments (external)
Census data and public records (external).
This now

M2-Explain the limitations of marketing research used to contribute to the development of a selected organisation’s marketing plans For this sector of the report I will be identifying and explaining the limitations of the market research methods used in the Kellogg’s investigation. This should give a clear overview of how Kellogg’s develop. In the case study I have been studying I have acknowledged Kellogg’s uses four junctures of market research to ensure they have examined a product collectively which enable Kellogg’s to develop they’re products better and to better the product to suit its target audience. Firstly, we have a very important sector of market research which is seen as discovery, it is vital to identify a set of new food ideas that would be suitable for developing a new Crunchy Nut product. Secondary research was conducted from Mintel and Datamonitor and was used to find out about innovation trends in the cereal market. It was also used to find out about new products, flavours and foods from around the world. Food developers at Kellogg’s used this information to come up with a number of new food ideas.

Although secondary data is easy to access there are some limitations Kellogg’s need to take into consideration, this could be for instance the age of the documents and when the research had been operated. Also the size of the group the research was taken and how many people were involved. I have also accredited secondary research can be very vague and general this would prove difficult for Kellogg’s to make a decision. In market research there are different aspects a business can branch into, many in which are very beneficial. The next form of research Kellogg’s had fore taken was selecting the best concept for their product they ensured they could do this by overseeing a quantitative survey. This had then created specific statistical information that indicated that a new Crunchy Nut Bites idea was perceived as the most appealing amongst all the ideas tested. Although Kellogg’s manage to use the quantitative data efficiently there can be drawbacks to using quantitative data, the main hindrance of quantitative research is the context of the study is ignored.

Quantitative research does not study things in a natural setting or discuss the meaning things have for different people as qualitative research does. Another shortcoming is that a large sample of the population must be studied; the larger the sample of people researched, the more statistically accurate the results will be. Once the conception was formed Kellogg’s then had a job conform and construct the concept into a new product this involved usage of qualitative research which helped Kellogg’s food technologists to explore the taste and texture of the new food idea in more detail. Kellogg’s needed to understand the ‘eating experience’ of the consumer before a decision could be made about how to develop the recipe in more detail. Kellogg’s needed to take in to consideration even though the qualitative would help they’re market research they may be some downfalls, for example the researcher of the study is heavily involved in the process, which gives the researcher a subjective view of the study and its participants. The researcher interprets the research according to his or her own biased view, which skews the data gathered.

Another disadvantage is that this research method is very time consuming and can last for months or even years. Finally, it is always important to ensure the financial side of the product are understood and the product brings in a good profit also it is a good idea to set promotional prices to enable the customer to have a taster of the product. This meant Kellogg’s were required to predict a forecast of the product, Kellogg’s do this by undergoing one final test prior to the new product launch. This is called the ‘In Home Usage Test’. The consumers are given the product to try for several days and this enables Kellogg’s to capture how consumers interact with the product for the first time. As well as this being a very good technique to understand the consumer they can be negatives to this the obvious problem Kellogg’s would be facing is that markets are unpredictable. Any sales forecast, however rigorous its analysis of conditions, can be flat-out wrong.

Sales forecasts fall into two basic categories, each of which has distinct disadvantages. In this case this is a qualitative forecast so sales forecasts rely on experts’ opinions to predict upcoming sales performance. Which may be detrimental to Kellogg’s because qualitative approaches is subjective therefore opinions, even well-informed ones, can be wrong, especially if they don’t take into account relevant economic data. After overseeing Kellogg’s market research although the major drawbacks Kellogg’s can face, market research is very important for Kellogg’s as it previews what Kellogg’s can stumble upon when launching a new product. However market research that is gathered by any organisation could prove to be irrelevant and inappropriate.

D2-Make justified recommendations for improving the validity of the marketing research used to contribute to the development of a selected organisation’s marketing plans. After looking at all the limitations that effect Kellogg’s this has entitled me to make justification and recommendation for improving the validity of the marketing research used in Kellogg’s. Consequently I will be making three comprehensive recommendations with justifications to improve validity of the market research used to contribute to the development of Kellogg’s marketing plans. Market research is used by many organisations and is very fatal tool; however the data collected can sometimes not be as valid for various reasons, resulting in a business to make the wrong decision and highly affecting its market plans. The first recommendation I would like is to discuss to enhance the validity of the market research is for an organisation like Kellogg’s to choose the right amount of people to question.

Kellogg’s main objective is to improve their current product and to continue to create new products in order to carry this out they would have to carry research to find out what they lack in and what they need more of however if the amount of people questioned is too small the results would be invalid and will not do any justice to statistic therefore Kellogg’s should make the sample random and larger this will increase the accuracy of the information leading to the right decisions, Kellogg’s also need to be aware of setting themselves a goal and objective they would like to reach when choosing a people to take part in their research this increase validity as it gives and aim of what is required from conducting this research Secondly, I would like to recommend if Kellogg’s ask specific and objective questions, the people Kellogg’s survey should represent a cross-section of their target groups. This can extend the results to the whole group as long as Kellogg’s sample is representative.

Key factors in this matching process are sampling time and number of people surveyed. For example if they were to launch a new product of a similar range they need to question what they feel is missing from the existing products they can do this by asking feedback of existing customers this will make the data more valid and reliable because the right questions have been asked. Finally I would like to propose to Kellogg’s to avoid self-selection and use a valid samples with a representative view of Kellogg’s target group are based on random selection. If Kellogg’s allow survey respondents to decide whether to answer a survey, Kellogg’s can’t be sure the respondents represent a random sample. You have to pick survey respondents at random and classify those who don’t answer the questions as “did not respond.”

If the non-responsive group is substantial, reducing it by adding people who volunteer adds self-selection bias to the result because the volunteers are likely to share characteristics not demonstrative of your whole target group. Kellogg’s may have to change how you conduct the survey to get enough samples from a random selection. All of the above suggestions are to improve the validity and reliability of market research used by Kellogg’s; however Kellogg’s should also make sure that the question it uses match its research objectives to ensure that information collected contributes to the development of its marketing plans. Recommendations mentioned above will improve the validity of the research and accuracy of the information that will help the business make the right decisions based on the information collected and results of the research.

Introduction To Marketing Essay

The 6 Ps of Promotion Essay

The 6 Ps of Promotion Essay.

The traditional marketing mix is one of the most famous marketing terms. Its elements compose the basic components of a marketing plan. Also known as the Four P’s, the marketing mix consists of price, place, product and promotion. However, the retail marketing mix differs from the traditional marketing mix. It is made of 6 Ps: product, place, promotion, price, presentation and personnel. Although some of the elements are the same, these two concepts differ. In order for a business person to create a new retail business, he has to establish an effective retail marketing mix.

And in order to do that, there are steps that need to be followed, going through these elements one by one. However, before getting into the elements of the retail marketing mix, a target market needs to be identified first:

A target market is a group of customers that the business has decided to aim its marketing efforts and merchandise towards. This group is identified by geographic location, demographics and psychographics.

It has to be a specific group of people that have at least one of those elements in common. Once the target market has been identified, the elements of the retail mix are analyzed one by one. I analyzed these elements according to the Giant Eagle in Mc Intyre Square:

1. Product:

Product defines the physical product or service offered to consumers. In case of Physical products, it also refers to any services that are part of the offering. There are certain decisions that need to be made before distributing a product. These include: Brand name, Styling, Quality, Functionality, Safety, Packaging, Warranty, Accessories and services, and Repair and support. Product is the first element of the retail marketing mix. This is the most important element because it is the merchandise itself. A lot of time and consideration has to be put in figuring out and deciding on the product. The business people must line up a series of proposals before deciding on the final product that will best fit the target market. In addition, there are a few questions that need to be answered concerning the new product:

1.The benefits of the product 2.The differential advantage it has over the competition 3.The position within the market In Giant Eagle, they have the best quality selected products from all the recognized brands. On top of those, they have their own label brand that offers the same products at a cheaper price, with the same quality and taste.

2. Promotion:

It is important to inform customers about the products in order for them to want to purchase them. This is where “promotion” comes in. Promotion consists of communicating the benefits of products to the customers. This mainly involves four steps: Advertising, personal selling, sales promotion and publicity. These steps are necessary in order for the target market to be aware of what to expect from the products. – Advertising consists of any non personal paid form of communication of products in the prime media. Meaning, any communication of products using television, radio, magazines, billboards, etc.

It is intended to inform the target market about the products. – Personal selling involves oral communication with potential buyers with the purpose of making a sale. It focuses on developing positive relationships with the target before attempting any sale procedures. Good public relation doesn’t only help a product to sell; it also helps to handle negative attention. – Sales promotion is providing encouragement to customers or to the distribution channels in order to increase sales in short term. It involves special offers or money off coupons. – Publicity is the communication of a product by placing information about it in the media without paying for the media space directly. In a retail marketing mix, most retailers spend their promotional money locally in order to attract their target market in the closest area. Giant Eagle has television commercials; however they are not their main focus. They rely more on publicity and magazines posted to customers with advantage cards.

3. Place:

Place refers to how an organization will distribute its products or services. It is also known as distribution, channel, or intermediary. Effective distribution is important in order for the organization to meet its overall marketing objectives. This consists of the following distribution strategies: There are two types of distribution channels; the direct channel and the indirect channel. The direct distribution consists of the manufacturer distributing the goods or services directly to the consumer. The indirect distribution involves intermediaries in distributing the goods to the consumer, for example; manufacturer =>wholesaler=>retailer=>consumer.

In a retail marketing mix, location is very important. The place is part of the biggest investments of the business person, as it has to be located in an easily reachable location. The more accessible a place is, the more expensive it is to get it. And also, the location includes the nearest competition. Giant Eagle does a great job when it comes to location. There are about 4 different Giant eagles in my area. This is what attracts them many clients.

4. Price:

Pricing is very important because it is the only element that generates a turnover for the organization. Price supports the remaining P’s, as they are the variable cost. Pricing is difficult as it must follow the laws of supply and demand. However, the pricing response of competitors must be taken into consideration when deciding on prices. Pricing should take into consideration the following factors: fixed and variable costs, competition, company objectives, proposed positioning strategies, and target group and willingness to pay. An organization can make use of a number of pricing strategies.

These strategies are based on the goals and objectives of the company. The types of pricing strategies go as follows: -Penetration pricing: The price charged for a product or service is set low in order to increase sales and market share. Once this is accomplished, the price is increased. –Skimming pricing: The price charged for a product or service is set high because there is a large competitive advantage. However, the price will relatively decrease due to increased supply and in order to expand the market. -Competition pricing: The price charged for a product or service is set in comparison with the competitors. -Product line pricing: Pricing a range of product or services at different price points. For example, one wants to purchase a new laptop.

At the store, there are different types of laptop, with different features, different brands. One would be willing to pay a greater price for greater features. -Bundle pricing: The Company bundles a group of products at a reduced price. For example a dining table at $100, the dining chairs at $30 each (4 chairs) and the whole set at $200. -Psychological Pricing: This is when the seller considers the emotional response instead of the rational basis. For example the price will be 99 cents rather than $1 or $1999.99 rather than $2000. -Premium pricing: The price of the product or service is set high to reflect its uniqueness. For example, First class airline services, five star hotels, etc. -Promotional pricing: Price is set to promote a product.

Example, buy one get one free, 50% off all products, etc. In a retail marketing mix, the correct price is very important because it will help to bring about sales. Usually, the higher priced products were known to have the best quality. However, due to the recession, most companies have opted for the lowest price strategies. Giant Eagle prices are not the cheapest, however they are affordable. Compared to other stores, they tend to overprice some of their products, which would chase away customers.

5. Presentation

The presentation of a store is just as important as the previous elements. It is the outside of the store that will initially incite potential customers to walk in. The presentation makes the expectations of a potential customer. This is why it is so important. At Giant Eagle, the presentation attracts customers to go in and shop. At the entrance there is the vegetable section which is very refreshing and attractive. It makes the customer want to walk in and shop for those fresh vegetable.

6. Personnel:

The stores employees will make or break the reputation of the store. If their customer service is not impeccable, then no one will want to go buy from them, despite the fact that their products are great and their location is ideal. This is why employees have to be trained to keep their personal matters out of the working place, especially when they have to interact with customers. Overall, retail marketing mix differs to the traditional marketing mix in the way that there are two additional elements to it. These elements will make the entire mix more than the previous 4.

The 6 Ps of Promotion Essay