17 April 2014

Marketing Mix

The marketing mix is a business tool used in marketing and by marketers. The marketing mix is often crucial when determining a product or brand's offer, and is often associated with the four P's: price, product, promotion, and place. In service marketing, however, the four Ps are expanded to the seven P's or eight P's to address the different nature of services.
In the 1990's, the concept of four C's was introduced as a more customer-driven replacement of four P's. There are two theories based on four Cs: Lauterborn's four Cs (consumer, cost, communication, convenience), and Shimizu's four Cs (commodity, cost, communication, channel).
In 2012, a new four P's theory was proposed with people, processes, programs, and performance.
 A product is seen as an item that satisfies what a consumer demands. It is a tangible good or an intangible service. Tangible products are those that have an independent physical existence. Typical examples of mass-produced, tangible objects are the motor car and the disposable razor. A less obvious but ubiquitous mass-produced service is a computer operating system.
Every product is subject to a life-cycle including a growth phase followed by a maturity phase and finally an eventual period of decline as sales falls. Marketers must do careful research on how long the life cycle of the product they are marketing is likely to be and focus their attention on different challenges that arise as the product move.

The marketer must also consider the product mix. Marketers can expand the current product mix by increasing a certain product line's depth or by increasing the number of product lines. Marketers should consider how to position the product, how to exploit the brand, how to exploit the company's resources and how to configure the product mix so that each product complements the other. The marketer must also consider product development strategies. 

Marketing strategy

Marketing strategy is defined by David Aaker as a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage.Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives.
Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketingobjectives Plans and objectives are generally tested for measurable results. Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered by the marketing plan vary by company, by industry, and by nation, however, time horizons are becoming shorter as the speed of change in the environment increases. Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. Seestrategy dynamics. Marketing strategy needs to take a long term view, and tools such as customer lifetime value models can be very powerful in helping to simulate the effects of strategy on acquisition, revenue per customer and churn rate.
Marketing strategy involves careful and precise scanning of the internal and external environments. Internal environmental factors include the marketing mix and marketing mix modeling, plus performance analysis and strategic constraints. External environmental factors include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success.A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement.
Once a thorough environmental scan is complete, a strategic plan can be constructed to identify business alternatives, establish challenging goals, determine the optimal marketing mix to attain these goals, and detail implementation. A final step in developing a marketing strategy is to create a plan to monitor progress and a set of contingencies if problems arise in the implementation of the plan.
Marketing Mix Modeling is often used to help determine the optimal marketing budget and how to allocate across the marketing mix to achieve these strategic goals. Moreover, such models can help allocate spend across a portfolio of brands and manage brands to create value.


Targeted advertising

Targeted advertising is a type of advertising whereby advertisements are placed so as to reach consumers based on various traits such as demographics, psychographics, behavioral variables (such as product purchase history), and firmographic variables ... or other second-order activities which serve as a proxy for these traits.
Most targeted new media advertising currently uses second-order proxies for targeting, such as tracking online or mobile web activities of consumers, associating historical webpage consumer demographics with new consumer web page access, using a search word as the basis for implied interest, or contextual advertising.
Addressable advertising systems serve ads directly based on demographic, psychographic, or behavioral attributes associated with the consumer(s) exposed to the ad. These systems are always digital and must be addressable in that the end point which serves the ad (set-top box, website, or digital sign) must be capable of rendering an ad independently of any other end points based on consumer attributes specific to that end point at the time the ad is served. Addressable advertising systems therefore must use consumer traits associated with the end points as the basis for selecting and serving ads.
Advertisers want to reach as many consumers as efficiently as possible. This requires an understanding of how customers' minds work.
Behavioral targeting is the most common targeting method used online. Behavioral targeting works by anonymously monitoring and tracking the content read and sites visited by a user or IP when that user surfs on the Internet. This is done by serving tracking codes. Sites visited, content viewed, and length of visit are databased to predict an online behavioral pattern.A further refinement to behavioral targeting is Predictive Behavioral Targeting, where machine learning algorithms overlay behavioral patterns with sampled data, to create data-rich predicted profiles for every user.

Alternatives to behavioral advertising include audience targeting, contextual targeting, and psychographic targeting.

Behavioral Targeting

What is Behavioral Targeting?
It  refers to a range of technologies and techniques used by online website publishers and advertisers which allows them to increase the effectiveness of their campaigns by capturing data generated by website and landing page visitors. When it is done without the knowledge of users, it may be considered a breach of browser security and illegal by many countries' privacydata protection and consumer protection laws.

Why Learn Behavioral Targeting?

How Behavioral Targeting will help my business Grow?



When a consumer visits a web site, the pages they visit, the amount of time they view each page, the links they click on, the searches they make and the things that they interact with, allow sites to collect that data, and other factors, create a 'profile' that links to that visitor's web browser. As a result, site publishers can use this data to create defined audience segments based upon visitors that have similar profiles. When visitors return to a specific site or a network of sites using the same web browser, those profiles can be used to allow advertisers to position their online ads in front of those visitors who exhibit a greater level of interest and intent for the products and services being offered. On the theory that properly targeted ads will fetch more consumer interest, the publisher (or seller) can charge a premium for these ads over random advertising or ads based on the context of a site.

Presentation on  Behavioral Targeting 


behavioral-targeting-across-online-advertising-channels
Behavioral marketing can be used on its own or in conjunction with other forms of targeting based on factors like geography, demographics or contextual web page content. It's worth noting that many practitioners also refer to this process as "Audience Targeting".





Management

Management in business and organizations is the function that coordinates the efforts of people to accomplish goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization or initiative to accomplish a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Management is also an academic discipline, a social science whose object of study is the social organization.
Management involves the manipulation of the human capital of an enterprise to contribute to the success of the enterprise. This implies effective communication: an enterprise environment (as opposed to a physical or mechanical mechanism), implies human motivation and implies some sort of successful progress or system outcome. As such, management is not the manipulation of a mechanism (machine or automated program), not the herding of animals, and can occur in both a legal as well as illegal enterprise or environment. Based on this, management must have humans, communication, and a positive enterprise endeavor. Plans, measurements, motivational psychological tools, goals, and economic measures (profit, etc.) may or may not be necessary components for there to be management. At first, one views management functionally, such as measuring quantity, adjusting plans, meeting goals. This applies even in situations where planning does not take place. From this perspective, Henri Fayol (1841–1925)[3] considers management to consist of six functions:
1.   Forecasting
2.   Planning
3.   Organizing
4.   Commanding
5.   Coordinating
6.   Controlling
Henri Fayol was one of the most influential contributors to modern concepts of management.[citation needed]
In another way of thinking, Mary Parker Follett (1868–1933), defined management as "the art of getting things done through people". She described management as philosophy.[4]
Critics, however, find this definition useful but far too narrow. The phrase "management is what managers do" occurs widely, suggesting the difficulty of defining management, the shifting nature of definitions and the connection of managerial practices with the existence of a managerial cadre or class.
One habit of thought regards management as equivalent to "business administration" and thus excludes management in places outside commerce, as for example in charities and in the public sector. More broadly,every organization must manage its work, people, processes, technology, etc. to maximize effectiveness. Nonetheless, many people refer to university departments that teach management as "business schools". Some institutions (such as the Harvard Business School) use that name while others (such as the Yale School of Management) employ the more inclusive term "management".
English speakers may also use the term "management" or "the management" as a collective word describing the managers of an organization, for example of a corporation. Historically this use of the term often contrasted with the term "Labor" - referring to those being managed.


Quality Control

Steps used in quality control:
1.     Define the quantity specification as given by customers.
2.     Measure actual quality from the process.
3.     Comparison of actual quality with the specified quality.
4.     Whenever there is derivation or variation between them, then take appropriate corrective action.

Every manufacturing process has got variability. The variability is of two types:
1.     Process is under chance cost
2.     Process is under assignable cost
Chance cost is random, i.e. even though the process is controlled very well, under identical conditions, but even though every item is varied in dimensions than the other. This variation has to be accepted because of chance cost. Variation due to assignable cost is not accepted. This concept is used in SQC (Statistical Quality Control) as follows:
·        We draw control charts
A control chart consists of 3 straight horizontal lines. Middle line is called x bar which is avg of avg of sample means. Upper control line & lower control line are called as decision criteria lines which are away from central line x bar at a distance of 3 бs. The sample points drawn at regular interval from the production process are plotted on these graphs.
Inference: If all the sample points drawn are lying within the 2 control lines then, we say, process is under statistical control i.e. the process is under chance cost only, but if any 1 of the point falls beyond the control limit, it gives  a signal that process is going out of control statistically, i.e. assignable cost is introduced in the system, therefore the process is to be stopped at that point & corrective action is taken. Take correct action so that sample points will lie between 2 control limits. This process is called as Statistical Process Control.


TQM is an integrated approach of the organization in delighting the customer (both, Internal & External) by not only meeting, but exceeding their expectation on a continuous basis through everyone involved in the organization on continuous basis in order to improve products, services & processes along with problem solving methodology.




KAIZEN


Kaizen is management supported employee driven process where employees make a great number of continuous lasting improvements by discovering small problems and eliminating them permanently there by helping organization is setting & trenching higher standards of performance
Kaizen gives marginal but continuous improvement with no investment or little investment
Kaizen are of three types [depending upon the complexity and level]
1.      Management kaizen
2.      Group kaizen
3.      Individual kaizen

Kaizen process- also called kaizen story consists of seven sequential steps built on famous PDCA cycle, for indentifying and fixing problem

1.      Defining problem
2.      Understanding /assessing the currents status
3.      Finding the root cause
4.      Planning counting counter measures
5.      Implementing counter measures
6.      Verifying results
7.      Standardizing and establishing control



Benefits of kaizen
1.      It helps for companywide continuous improve met
2.      It increases productivity by eliminating waste arising from MURA [incases is tency] (MURI) in adequacy
3.      Generals process oriented thinking
4.      Emphasizes implementation of idea & not merely generation of ideas
5.      It bring alignment between objectives of the organization and those of its employee
6.      It creates good relations between management and unit
7.      It creates creativity among employees of the company
8.      It gives employments to employers to implement improvement at their work place

The types if kaizen are differentiate on the following parameters
1.      Focus
2.      Involvement
3.      Duration
4.      No of kaizen
5.      Implementation cost
6.      Results
7.      Support system
8.      Benefits
9.      Change in current status
10.  Tools




Positioning

Positioning is an essential part of launching your product and company in the market. The term “positioning” should be viewed both as a verb and a noun.
As a verb, it can be defined as deploying a set of tools and processes used to influence and control the market’s perception of your product or company in relation to any competing alternatives. As a noun, it can be defined as an attribute or condition associated with your product.
Nevertheless, positioning is not what your company physically does to a product—it is what your company does to a customer’s mind. It provides an effective answer to the question, “What do you do?” Keep in mind that the question has to be answered from the customer’s point of view and clearly state what the product does for the customer.
Customers develop opinions about companies and products, and the positioning of each in the mind of the customer always occurs in relation to the competition or the customer’s other alternatives (which may include doing nothing).
While marketing communications play a part in developing the desired position, it’s worth noting that in reality customers make up their minds based on a wider range of factors, including packaging, pricing, product performance, references and media recommendations.
Positioning fundamentals:
·         Positioning is the single greatest influence on a customer’s buying decision.
·         Each customer evaluates products in the market according to their mental map of the market.
·         Positioning exists in customers’ minds, not in positioning statements.
·         People do not easily or willingly change their minds about a product’s positioning.
·         Positioning must first demonstrate a product’s relevance, using supportable, credible, and factual terms.
·         Making the product easier to buy through effective positioning makes the product easier to sell.
Mapping the market
Mapping the market involves identifying and staking out the most relevant customer segments. It enables you to establish and potentially control how your product is viewed in terms of benefit and differentiation.
Benefit: The advantage conveyed by the product to the target customer based on his compelling reason to buy.
Differentiation: The singling out of the one element that creates your benefit and makes you unique in the marketplace, at the same time bearing relevance to the customer.
Positioning template
The positioning template can help you to express the fundamental value proposition that your product provides to a target customer and the market. It must identify the:
·         target customer or market
·         compelling reason to buy
·         product’s placement within a new or existing category
·         key benefit that directly addresses the compelling reason to buy
·         primary alternative source (i.e., competitor) of the same benefit
·         key difference or point of differentiation
Positioning statement
The positioning template enables you to create a positioning statement, which explains who you are, what you offer, whom it is for, and why it is important and compelling.
The positioning statement should meet several key criteria:
·         It effectively identifies the target customer or segment, and makes the situation clear and understandable.
·         It makes your claim (and related benefit) concise, singular and compelling, and supports it by credible evidence.
·         It makes the differentiation statement concise, singular, compelling, and supportable, and it reflects the target customer’s attributes and environment.
·         It passes the “elevator test” (i.e., it can be explained in a few words).
Using the template, a positioning statement can be structured like this:
·         For (target customer or market)…
·         Who (have a compelling reason to buy)….
·         Our product is a (product’s placement within a new or existing category)….
·         That provides (key benefit that directly addresses the compelling reason to buy)
·         Unlike (primary alternative source (i.e., competitor) of the same benefit)
·         Our product (key difference or point of differentiation in relation to the specific target customer)
Positioning and market type
In a new market, you must define the market and your company’s place within it. This involves positioning your company to visionary buyers as a thought leader within an emerging, highly promising market category. You must also demonstrate your product’s benefit or competitive advantage against existing products and the status quo.
In an existing market, the positioning changes. Here, it must demonstrate to economic buyers and end-users that your product and application are the most credible and comprehensive option for the customers’ needs. In order to achieve the desired positioning, your communication must clearly articulate your unique points of differentiation.