Understanding the concept of Advertisement AdStock and Importance of it in Marketing Mix Modeling

Topbullets.comAs I wrote in my previous blog that advertisement is basically nothing but a paid version of promoting your brand or product or services. Please read it here if you want to know more about advertisement and different kinds of advertisements. So companies spend millions of dollars on ads not just to make awareness of their products but also to stay in customers’ mind (retention). What is retention? Let’s discuss it today. Continue reading
Advertisements

6 Markets Model in Relationship Marketing

The 6 market model helps the organization to study about the stakeholders and key market domain that may be important to them. If an organization wants to grow and sustain, it has to maintain its relation with internal as well as external environment. Through the analysis of all 6 markets, managers can kind the critical markets and the opportunity in each market. In order to visualize and understand each market’s importance Payne and Holt(2001) gave this 6 markets model.


Source:Lindgreen, Adam (2004)

Let’s explain one by one.
1. Customer Market: This market contains buyer, intermediates, final customers and retailers. They are our final consumers for a product. So they are the most important entity for any business. We need to retain them as long as we can. We also need to attract new customers. Ultimately creating brand loyal customers is our main goal. We can add more values to our product.
Customer Market directly influences an organization. If customers are not satisfied with our product, we can not retain them. In case of Service Marketing customers’ satisfaction is more crucial.

2. Influence Market: Influence market includes stakeholders as well as third parties. Customers who have bought our product must give feedback to their friends, relatives and neighbors. For any organization these customers are their influencers and when third party like supply partners and retailers influence our customer to buy our product, they are called value added influencers. They may be TV reporters, Shopkeeper, Article writers, Analysts etc.
Sometimes our own competitors also act as our influencer. Their ads can help an organization to add more customers and their promotional activities can decline our sale.

3. Referral Market: Referral marketing is when we buy something after being referred by our friends and relatives. In general we can understand this term as “Word of Mouth”. In case of Service Marketing, Referral marketing is very common. We can also find this in our daily life. We can get hundreds of advises when we look for a doctor. Everyone in our family would suggest a different Physician. So this is what Referral Marketing is.
So Referral Market can further be divided into 2 categories: Customer and Non Customer Referral Markets. So this is the cheapest way of promotion and effective too. So our main priority should be “Customer Satisfaction”.

4. Supplier Market: Suppliers are like partners to an organization. They do supply the crucial raw materials and parts. We need to develop an strategic alliance with them. We need to maintain a good relation with them as well.

5. Employee/Recruitment Market: This market helps an organization to keep the best people who can add values to the organization. They should be talented, experienced, skilled and royal. In IT industry the firm needs innovative and skilled persons but in case of Service Markets firms need skilled as well as experienced people. So we can say that people inside the firm also affect the profitability. An organization always looks for individuals with particular skills; who are highly productive, innovative, and effective; and who share a given organization’s values.

6. Internal Market: This kind of market applies to the customers and employees within the organization. Actually there should be proper harmony among the employee and suppliers and customers so that organization can work together and achieve its mission.
Specifically in terms of relationship marketing, those within the organizations must understand how the impact relationships between the firm and other parties, do so in a way that reflects and supports the organization’s long-term goals, and resolve conflicts of interest accordingly.

Payne, Adrian, David Ballantyne, and Martin Christopher (2005) summarize this 6 Markets model as:
(1) “Customer markets” include existing and prospective customers as well as intermediaries like retailers, wholesalers;
(2) “Referral markets” include two main categories – existing customers who recommend their suppliers to others, and referral sources, or “multipliers”, such as an accounting firm who may refer work to a law firm;
(3) “Influencer markets” include financial analysts, shareholders, the business press, the government, and consumer groups;
(4) “Employee markets” concerns with attracting the right employees to the organization);
(5) “Supplier markets” include traditional suppliers as well as organizations with which the firms has some form of strategic alliance); and
(6) “Internal markets” (the organization including internal departments and staff (Christopher et al., 1991).

References:
1. Lindgreen, Adam. “The design, implementation and monitoring of a CRM programme: a case study.” Marketing Intelligence & Planning 22.2 (2004): 160-186.
2. Payne, Adrian, David Ballantyne, and Martin Christopher. “A stakeholder approach to relationship marketing strategy: The development and use of the “six markets” model.” European Journal of Marketing 39.7/8 (2005): 855-871.
3. Relationship Marketing: Creating Stakeholder Value by Authors: Martin Christopher, Adrian Payne and David Ballantyne Taylor and Francis: 2002

Protected by Copyscape Plagiarism Check

Copyright © 2013 ·All Rights Reserved · Republishing or copying this article or any part of this without giving reference would come under WordPress Copyright Act.

Signature

Deepesh Singh
logo

Advertising is a Waste of Resources – Group Discussion

Today our Group Discussion Topic was “Advertising a waste of Resources” which was among the selected topic for GD in Mu Sigma last year in our campus.
I want to start with the definition of Advertisement. It is something a promotional act that a company does to convey a message about the product and quality. Moreover sometimes company does the advertisement so that customer can recall the product quickly while he goes to buy this. So I totally disagree with the thought that advertisement is a waste. Indeed it helps the company to create brand value in consumers’ minds.

DOve India

Let me put through an example. Dove nowadays has a brand value. But it was launched just 5 years back. Then they did advertisement and invested a lot of money. They distributed sample through newspaper. And I am lucky I have got more than 2 times. They may have wasted their resources at that time but now they are earning it back. Now the same Dove is selling their in high price and placed itself into a recognized and elite brand after they brought Katrina for the advertisement.
There are many examples. I can give examples from every company for every brand. Now the question comes why advertisement again and again. So let me clear this too. Let’s take the example of Nokia Lumia. They run a huge campaign with Windows Phone to promote their models. They invested a huge amount of money and got positive response in Indian Mobile Market. Not if they stop promoting or advertisement in India, their sales would definitely go down. We have a new model every 2nd day. No one will remember Nokia Lumia after 3 months if they stop advertisement. Some another company like HTC, Sony, and LG will take the consumer’s mind and while purchasing a product consumers will recall Sony or LG quickly. So Nokia would like to lose its royal consumers. So they have to keep advertising. Though we do not have any machine or technique to calculate the profit through advertisement but it is definitely a necessary tool to get into consumer mind.

If you go to Indian Villages, you will find people asking for Colgate instead of Toothpaste. They will ask for Lifebuoy instead of bathing soap. Why? Because the advertisements have done its work. People can easily recall the product and company gets its advantage. Colgate from last few years is in the top most position in India Brand Value. So in my opinion before launching the product company has to invest huge amount to promote the product and after launching they have to put money regularly for ads to keep the product alive in consumers’ minds. Thank you!

Read More

Protected by Copyscape Plagiarism Check

Copyright © 2013 ·All Rights Reserved · Republishing or copying this article or any part of this without giving reference would come under WordPress Copyright Act.

If you liked this article, please rate and comment. Thank You!

Signature

Deepesh Singh
logo