Heuristic Marketing Concept – Philip Kotler

Heuristic Marketing Concept is based on the development, design and implementation of marketing programs, processes and activated that recognizes their breadth and interdependencies. Holistic marketing recognized that everything matters in the marketing – and that a broad, integrated perspective is often necessary.
So this concept recognizes every aspect of marketing and its importance. It is further divided into 4 broad sub categories. These are:

  1. Relationship Marketing
  2. Internal Marketing
  3. Integrated Marketing
  4. Performance Marketing

Heuristic Marketing - Philip Kotler

Relationship Marketing
Today in this competitive market, retaining customers is a major challenge. So every company keeps customer’s need and demand as their main priority. Companies try to establish a relationship with customers as well as its partners and suppliers which can be beneficial to the company.
Relationship Marketing aims to build mutually satisfying long-term relationship with key constituents in order to earn and retain their business.

Internal Marketing
Holistic marketing also identifies internal marketing to ensure that everyone in the organization embraces appropriate marketing principles. It includes hiring, training and motivating. It is very important to train internal people and make them able to provide world class services to the customers. Without smart and professional people in the people, marketing a good service or better product in the market is unworthy.

Integrated Marketing
One of the major tasks of marketing manager is to study marketing activities and assemble fully integrated marketing programs to create, communicate and deliver values to the customers so marketing managers apply 4 P’s of marketing: Product, Price, Place and Promotion. In case of service marketing, we have 7 P’s: Product, Price, Place, Promotion, Process, Physical Evidence and People.

Product
o Product Quality
o Design
o Brand Name
o Service
o Warranty
Price:
o List Price
o Discounts
o Payment Period
Place:
o Channels
o Location
o Inventory
Promotion
o Sale Promotion
o Advertisement

Performance Marketing
It defines the returns to the business from marketing activated and programs as well as addressing broader concerns and their legal, ethical, social and environment effects. Top management studies not about just sales and profit or revenue; they study also about customer satisfaction, product quality and standard, customer lose rate etc.
Few concepts of performance marketing:
1. Financial Accountability
2. Social Responsibility Marketing

Bibliography

1. Kotler, P. (2009). Marketing management. Pearson Education India.

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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

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Business Strategies and Organizational Characteristics

According to “Organization Strategy, Structure, and Process, Raymond E. Miles and Charles C.” there are mainly 3 kind of Organizational Strategies. Organizations adopt these strategies according to the situation and the need for the growth and development of the organization. Sometimes they take decision for survival or market expansion also. These are

  1. Defender organizations
  2. Objective: To maintain a stable share of the market through cost minimization.

  3. Prospector organization
  4. Objective: To locate and exploit new product and market opportunities

  5. Analyzer/Innovative organizations
  6. Objective: To maintain their shares in existing markets and to find and exploit new markets and product opportunities.

The basic differences between these 3 are given below.

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