Marketing Blog

Marketer's need to reduce risks in every industry. Whether it is online advertising or service marketing, these 6 perceived risks are always a factor when purchasing or using a service. Depending on which industry, some can be more than others, and some may have a lesser relevant. Marketer's all appreciate the relationship between price, benefits and quality; they all are a measurement of value.  Once you identify what the risks are for your product or service, it is a good idea to try and reduce the implications of your risks.  Functional Risks Functional risks relate to the performance of the product. Does your product or service deliver what it says it will? Honesty is the best policy! It's not just a saying- it actually will help you retain your customers and increase satisfaction. For example, you are dry cleaning service, even though you might Financial Risk Financial risks are monetary loss. In terms of perception, when you pay more, you expect m...

The Consumer Decision Process, or the 5 Stages of the Buyer's Decision Process is the cycle a consumer goes through when they purchase a product or service. The process has 5 main steps: Problem Recognition Information Search Evaluation & Selection Store Choice & Purchase Post Purchase Processes  1. Problem Recognition   In this stage, a consumer realises they need a product or service to solve their problem. In psychology this can be separated between a need or want. This classification is based on your biological needs, for example; if you feel thirsty you need a drink. Whereas you need a car to drive around, but you want a Lexus due to the brand name and quality associated with it. 2. Information Search   After a consumer has recognised they have an problem, they seek information on where they can find a solution to their problem. They can conduct an internal search , which means they use information from their ...

What does SWOT Stand For?    SWOT stands for: strength, weakness, opportunities and threats. A SWOT analysis is used in marketing to analyses a company using the marketing mix. The marketing mix refers to the 4p: Price (cost of a product) Product (Features of the product) Place/ distribution ( where the product can be found) Promotion (techniques to encourage sales). A SWOT analysis is equivalent to the balance sheet in the accounting world. It demonstrates what is happening at a single point in time. Strength and Weaknesses   The strength and weakness section of a swot analysis cover the internal factors a company has. This concentrates only on what happens within your company. It can demonstrate which areas require improvement, and focuses on efficiency.       Opportunities and Threats    The opportunities and threats section of a swot analysis cover the external factors that effect a company. For example...

What's Google AdWords?   AdWords is an advertising method provided on Google. The adverts, that being the ads you have created are placed on the top, bottom, and/or right had of your Google page; they are usually in a buff colour and are relate to a search result.  Every time you search something, this is known as a search query . Google brings up the adverts that relate closest to your search query. A lot of factors are taken into consideration before an advert is shown on the page. AdWords work on a cost-per-click (CPC) bases, this means that the advertiser does not pay unless if someone has clicked on your advertisement. The cost you pay heavily depends on how many advertisers are competing to appear, thus the CPC varies depending on your industry.  In 2011, it is estimated that 62% of Internet users have purchased a good or services online (Gregorio, 2011, par 5).  "Regardless what industry you are in, without being online, you are missing out on a great mark...

Some brands build such a brand leverage, that they become synonyms for what they are. Some times you hear people call for a brand rather than what the item actually is. This is very hard to achieve, but if achieved, your brand is positioned in a unique way- it becomes a generic term used in everyday conversation, it basically becomes its function.  In all, the product name is adopted into the language, especially in English. Once this happens, it is very hard to compete against a product like this. They will most likely have a significant amount of the market share.    Successful Brands that Become Synonyms for Generic Terms Kleenex : Have you ever heard someone say "pass me a Kleenex" rather than using the word 'tissue'? This is a classic example of how the brand Kleenex is used as its common term. When I was growing up, I thought Kleenex meant tissue, on later on understood it was a brand that produces tissues.       Jaccuzzi: for "Spas/hot tubs...

What’s Brand Positioning?    Positioning is the way customers perceive your product. There are 3 variables that effect your positioning: price, quality and benefits. Before you start your business it is very important to understand how these variables can effect your business in the long-term. You need to research and be aware of what your competitors are offering in your industry. According to numerous studies, the more competitors in an industry, the harder it is gain market share. However, you need to find market gaps. By understanding the price, quality and benefits, thus the values a customer has, then you may be able to find to find niche products to provide.   Think about it. Most people attribute a lower price with lower quality, but the value for that market is the cost.   There are 7 bases you can position yourself in the market: By product attributes: Hyundai Excel ( low price)     By benefits offered: Colgate toothpaste (cavity c...

What’s Re-branding? Re-branding is changing the name of your brand name from one name to another. Once your brand name is set to market, all your marketing effort, that being your promotional tools are set to have your customers familiarise yourself with the new brand in that industry. Pros to Re-branding Re-branding to fit society, for example customers have become more health conscience. McDonald's is working on re-branding their image by introducing healthier options.  Changing your brand to fit a new company identity. For example Apple changed its name from  Apple Computers  to  Apple Inc,  and got rid of the colourful Apple logo.  Cons of Re-branding Customer have developed an emotional attachment to your brand. For example Coke a Cola. In 1985, based on a focus group, Coke decides to change its name to New Coke. Any social scientist would know that a focus group does not have external validity,  thus would have seen the major...