Reds Marketing Tips

Reds regularly creates Marketing Tips for users who would like to increase, and perfect their marketing campaigns.

Decision Making Adoption Process

The focus of this process is the stages through which an individual consumer passes to arrive at a decision to try, to continue or to discontinue using, a new product. On purchasing high capital goods consumers pursue an extensive information search. Adoption begins with awareness, leading to interest and evaluation. A more general decision-making model is: * Knowledge - consumers are exposed to the product* Persuasion - form favourable attitude* Decision - engage to adopt the product or reject their innovation* Implementation - put the product to use* Confirmation - consumers seek reinforcement for their decision. The rate of adoption is how long it takes for a new product to be adopted through the social system. The adopter categories are:* Innovators 2.5% - venturesome - very eager to try new ideas* Early adopters 13.5% - opinion leader, respect from their peers, person to check with before purchasing* Early majority 34% - Deliberate - adopt ideas later than average time* Late majority 34% - Sceptical, purchase because of economical necessity* Laggards 16% - traditional, last person to adopt an innovation The quickest and surest way to get your product adopted is to target the innovator/opinion leader.Innovators possess purchase and usage traits that set them apart. They are likely to be;Less brand loyalDeal-prone - take advantage of special promotional offersTend to be heavy users of the product category in which they are innovators.How to target Innovators* Innovators /opinion leaders have a greater than average exposure to magazines and watch less television than non-innovators...

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Four views of decision making

Numerous decisions are made daily concerning every aspect of our lives. These decisions are often made without stopping to think about how we make them, or what is involved in the decision making itself. In the most general terms, a decision is the selection of an action from two or more alternative choices, i.e. there must be a choice of alternatives available. The four views refer to the general view or perspective of why individuals behave as they do. Four views of decision makingAn economic viewIn a world of perfect competition, the consumer is often portrayed as economic - the one who makes rational decisions. Consumers rarely have enough information, or sufficient information, or even an adequate degree of involvement or motivation, to make perfect decisions. Consumers operate in an imperfect world and often "settle" instead of maximising price-quantity, marginal utility or indifference curves. Passive viewThe opposite of the economic view is the view that consumers as passive, basically submissive to the self-serving and promotional efforts of marketers. eg. Verimark ads and infomercials. A cognitive viewThis view portrays the consumer as a thinking problem solver. Risk is the key component the problem solver tries to dispel the risk associated with many product choices. When 'enough' information is gathered, the consumer stops seeking information to make 'satisfactory decisions', eg. motor vehicle adverts or high capital expenditure ads. An emotional viewConsumers may associate deep feelings or emotions (fun, fear, love, prestige, hope, sexiness, fantasy or a bit of magic). Mr price store with...

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Decision Making Stages

The stages of decision making How consumers make decisions is to understand the process of the internal influences that affect the consumer. The act of making a consumer decision consists of three stages. 1. Need RecognitionThe recognition of a need is likely to occur when a consumer is faced with a problem.There are two different problem recognition styles:1. Actual state types - a consumer who perceives that they have a problem when the product fails to perform satisfactorily.2. Desired state types - the desire for something new may trigger the decision process. Also, need or problem recognition can be viewed as simple or complex.Simple - needs that occur frequently e.g.. printer ink cartridges.Complex - problem develops over time eg. new computer with faster speed and larger hard drive that will handle the new upgrade software. 2. Pre-purchase searchThe consumer senses a need for information upon which to base his choice. The consumer uses personal long-term memory first, family, friends and then impersonal such as newspapers, magazines, consumer reports, direct mail brochures and information from product advertising.It's important that your advert will be seen. One of the main reasons why a company is experiencing a reduction in market share is because there is no advertising. An ad not seen will not be in the short term memory of the buyer. 3. EvaluationWhen evaluating potential alternatives, consumers use two types of information:1. the 'list' of brands - the implication for marketers is that promotional techniques should be designed to impart a favourable and...

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Business Influence Through Marketing Communications

Communication is the unique tool that marketers use to persuade consumers to act in the desired way. It can be verbal, either written or spoken, it can be visual or a combination of the two. Communication is the bridge between marketers and consumers and between consumers and their sociological environments. Communication is defined as the transmission of a message from a sender to a receiver by means of a signal of some sort sent through a channel of some sort. How the communication message is receivedThe mass audience as individual receivers: A mass audience is simply a great number of individual receiver's, each with his or her own interest, experiences, needs, wants desires. Market segmentation strategies divide the total audience into smaller audiences, each of which is homogenous in relation to characteristics relevant to the product. Specific advertising messages can be designed for each segment, and run in the media that appeals to that segment. Each individual thus feels that the message is specifically addressed to his interest and needs. Multiple audiences: The ultimate success of an organization depends on its ability to persuade many different audiences as the nature of its products or services. Companies with diverse audiences develop an overall communication message to all of their audiences, from which they spin off a series of related messages targeted directly at the specific interest of each individual audience. i.e. The BP opposite advert - winter, summer - black, white - beyond petroleum, BP. Selling intermediaries: In addition to advertising to...

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A fundamental aspect of modern marketing

First, here's something that is fast becoming the most fundamental aspect of marketing to get right, especially if you want to build a truly sustainable high-quality organisation (of any size) in the modern age. Ensure the ethics and philosophy of your organisation are good and sound. This might seem a bit tangential to marketing and business, and rather difficult to measure, nevertheless... Price is no longer the king if it ever was. Value no longer rules, if ever it did. Quality of service and product is not the deciding factor. Today what truly matters is ethical and philosophical quality - from the bottom to the top - in every respect - across every dimension of the organisation. Modern consumers, business buyers, staff and suppliers too, are today more interested than ever before in corporate integrity, which is defined by the organisation's ethics and philosophy.Good sound ethics and philosophy enable and encourage people to make 'right and good decisions and to do right and good things. It's about humanity and morality; care and compassion; being good and fair. Profit is okay, but not greed; the reward is fine, but not avarice; trade is obviously essential, but exploitation is not. People naturally identify and align with these philosophical values. The best staff, suppliers, and customers naturally gravitate towards organisations with strong philosophical qualities. Putting a good clear ethical philosophy in place, and communicating it wide and far lets people know that your organisation always strives to do the right thing. It's powerful because...

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How to Set Your Business Apart from Your Competitors

Your business should have something unique about it that sets it apart from the competition. If your business appears to be just like every other business in your industry, then there will be very little reason for customers to choose you as opposed to one of your many competitors. When competing businesses have no distinguishing benefits to set them apart, when they all offer basically the same products or services, the same customer service, etc. thencustomers will tend to compare those businesses based on price alone-the lowest price wins. Here are some of the ways you can set yourself apart: 1. Focus on a Particular Niche. Perhaps you are a supplier of plastic conversion equipment selling injection and blow moulding machines. An area to specialise on could be material handling in supplying blending and drying systems. Maybe you are in the service industry like IT  where you can focus on supplying an SMS service rather than the installation and repairs of PCs. If you are a fitness instructor, you could focus on helping keep business employees fit, or you could be the personal fitness instructor that focuses on high-level business executives. 2. Become the Low-Price, or the High-Price Leader Design your business to provide good products for an extremely economical price. Your company would be committed to providing excellent savings for your customers. Or you could take the opposite route and become the high-price provider. Obviously, you would have to target a completely different market segment than the low-price leader. 3....

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Marketing Tips for Small Business

"Good companies will meet needs; great companies will create markets," says Philip Kotler, the worlds pre-eminent marketing thinker. Stuart Crainer talks to Philip Kotler. Should marketing move up higher on the board room agenda?Marketing is poorly understood by businesses and the public. Business leaders largely view marketing as a promotional function.In too many companies marketers have become "1P marketers, the P being promotion. Their responsibility and control and other IP's - product, price and place (distribution) - has weekend and is handled more actively by others. One factor is that many CEOs view marketing as the marketing budget, which is largely spent on promotion. Persons in other departments work actively on the other Ps: product (R&D), price (finance) and distribution (the sales force). Where is the unified vision that starts with defining target markets and their needs and carries this all the way to preparing integrated solutions?Businesses that grasp the true role and potential of marketing will use it as the driver of their business strategy, and not simply as a tactical compliment. Marketing must also gain a seat on the board which is too rarely found. Is CRM living up to its promise?Customer relationship management (CRM) remains one of the most promising new marketing developments in recent years. CRM can be tremendously effective when it is used properly. The more a company knows about its customers and prospects the more effectively it can compete.Too often, CRM is imported as a technology before the company has adopted a genuine customer culture....

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Credibility of the Source and the Message

Business influence through marketing communications can be done through words, pictures, symbols, spokespersons and special channels. The advertiser (source) of interpersonal communication may be formal or informal. Informal sources include friends, family, neighbours, who speak with the receiver/target audience regularly. Formal sources include salespersons, political candidates who are compensated in a way to influence consumers to act in a certain way. Impersonal sources are usually oganisations that want to promote an idea, product, service or image to a consumer. The message can be transmitted through the mass media such as television, radio, billboards and the personal media such as direct mail and sales promotion. The creditability of the sourceThe perceived honesty and objectivity of the advertiser (source) of communication have a huge influence on the acceptance of the message. If the source is well respected and highly thought of by the intended consumer (audience), the message is much more likely to be believed. The creditability of informal sources is built on the perception that they have nothing to gain from the recommendation, e.g. an opinion leader. The creditability of formal sources is based on intention, reputation, expertise and knowledge. Consumers judge commercial sources based on their past performances, the kind and quality of the service, the quality and image of products offered, and their position in the community. When the intentions of the source are clearly profit-making, then factors affecting creditability include reputation, expertise and knowledge. Factors affecting these are: Creditability allows companies to market new products with less risk. Manufacturers...

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Brand Positioning Strategy

How to "Position and Re-position your Brand" Positioning strategy is about where you compete and how you compete.The brand could be a product, service or organisation.Positioning is normally done for a particular product and only uses two features from the product to analyse its position.It is usually best to rely on positioning approaches when they are part of a broader analysis, which in turn helps to ensure that the whole marketing mix (personal sales, sales promotion, general advertising, public relations and sponsorship) is positioned for competitive advantage. A positioning strategy has two components. The first is to know who you are targeting and the second is to differentiate the brand. The positioning statement has a creative platform that can project its image, such as the Outsurance statement "You always get something out" Once you have done some market research you may find that you need to reposition the brand because of;1. the target market is too small, declining or too competitive.2. the quality and features of the brand have no appeal.3. product costs are too high. There are several re-positioning optionsIntroduce New BrandA new brand could be a fighter brand (cheap clone to maintain a foothold in the mass market) such as a new shampoo or it may even be more specialised like a scientific instrument with slightly less features but targets a new segment that only needs the basic instrument. A new brand could be an update of the old one with new features and sold with a new name...

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How to Create a Sustainable Competitive Advantage

The company should try is to create a sustainable competitive advantage (SCA) in the market in which it competes. An SCA is a perceived difference that leads customers to prefer one offering to another. Why do people prefer Coca-Cola to Pepsi?The difference may be based on a superior product such as Nokia or better service support such as Toyota or lower price such as Game.When you can create an SCA, it creates a higher market share and develops a barrier for entry for new competitors and the ability to defend attacks from existing ones. For a sustainable competitive advantage there are four criteria's:1) Customer benefits - the offering must be seen as something important to them2) Unique - cannot be obtainable from any other firm3) Sustainable - Difficult to copy - patents, - economies of scale - the more you produce the cheaper it becomes4) Profitable - to offer a product or service with a price, cost and volume structure that makes it profitable - customers must be willing to pay for your profit. Searching for differential advantage begins with understanding what the customer values. The customer value is the perceived total satisfaction from the offering minus the price paid, minus the operating costs incurred over the life of the product/service. It is a mixture of economic, rational and subjective image factors.The factors that increase value and therefore a sustainable competitive advantage are product, service, personal, image and cost. Product DriversThe physical product can be differentiated by design to make it appear better or...

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