Tag Archives: Marketing

8 Ways to stand out at a Tradeshow

When it comes to running a successful booth at a trade show, there is a big difference between standing out and wasting your time. When people visit a trade show, they are looking for something interesting to grab their attention. The difficult part for business professionals is that they have a hard time determining exactly what an interesting trade show attraction is. As you prepare to invest a great deal of your time and money in a trade show, there are eight ways you can stand out and get everyone’s attention. Continue reading

7 Ps of Services Marketing – Framework Limitations

The 7 Ps of services marketing is indeed a popular framework used by marketing professionals to design the critical dimensions of the strategic blueprint while marketing a service. The services marketing mix is dominated by the 7 Ps of marketing namely Product, Price,  Place, Promotion, People, Process and Physical evidence. In fact, the 7 P framework is one of the most popular framework for deciding a marketing strategy for services in domains like banking, information technology enabled services or hospitality and tourism, right from strategy formulation to actual implementation.

However, one needs to be aware of the limitations of this framework while applying it in a business context. So in this article, we will discuss some of the major limitations of this services marketing framework.

One of the major drawbacks of the 7 P framework is that it does not address issues related to productivity in terms of both quantity and quality of service delivery. In integral services management, improving productivity during service is a requisite in overall cost management; but quality, as defined by the customer, is essential for a service to differentiate itself from other providers. These two deliverables are essentially opposite to each other in terms of goals. A firm would want to pursue a strategy involving cost minimization but still quality maximization. Hence a strategy that manages trade-off between such conflicting goals is needed to be optimized.

Similarly, another major important issue is managing the core competencies embedded within a firm. Services are essentially intangible in nature, by its very definition. Processes like service delivery address only a small part of the larger cake. Drawing from the resource based view, the organizational competencies are not matched through this framework, which is one of the building pillars of developing strategic frameworks which are external in nature. The viewing of internal resources in silos is somewhat a barrier for this framework, if used to develop an actionable strategy.

Another limitation of this framework is that it does not provide a mapping between the pricing strategies that needs to be followed, vis-a-vis the productivized version of the service. That mapping is often one of the most important drivers that can create or break the adoption of a service. A mapping of pricing to the critical dimensions (features) of the productivized service draws its theories from the pricing of services, which are often done in silos, since dimensions cannot be identified which are in unision but not over-lapping to the main delivery. Over-lapping dimensions create a perception of fluctuating utility among the consumers, and since these are intangible, the overall valuation of the importance and value of a service, gets impacted in a major way.

Understanding the limitations of any theoretical framework before applying it to practical scenarios is crucial for the success of the strategic plan. Please let us know, what you feel about this article. By the way, did you read about the 8 Ps of marketing, the new age marketing mix?

Marketing Theory – CCDVTP

CCDVTP stands for “create, communicate, deliver the value to the target market at a profit”, a term that has been popularised by Philip Kotler. It is being considered as an emerging lingo amongst marketing professionals ever since it was coined. This has caught the attention since it connects three ideals that are often existing in silos in marketing organizations. This has been identified as the value chain in marketing, among the other important marketing theories and today, surprisingly has become a buzzword in many interviews for marketing and sales jobs.

Creating value is synchronized with product management, whether the product or service is tangible or intangible. The product is what is the core of value creation, for your customers and also for your firm. Product life cycle management is thus one of the crucial activities in product management. Today, services and products need to be managed so as to deliver quality value consistently. There are many frameworks which enable the product management team create consistencies across delivery of the same. However, creating the best product or service offering will result in no value for the producer, unless the same can be communicated. This is where branding exercises are conducted.

Communicating the value of a product or service is branding and brand management. A highly valued product or service which a producer company may perceive, must also be conceived by the user as having similar value or more. Otherwise the whole exercise of creation of the offering through proper product management strategies, falls flat. Branding enables a firm to rely on the pull strategy rather than on the push strategy, and it has been observed that firms generate higher profitability from the pull strategy than from the push strategy.

Delivering value is synchronous with customer management. Value is generated at the point of consumption of any offering, be it a product or a service. Customer value management is the process by which this value may be tapped successfully to create value for the firm. This is the process by which the results of all the effort taken in creation of value is actually realized by the firm and directly affects the top-line of the firm’s financials. It has been seen that through proper customer management, customer satisfaction increases substantially which in turn reduces churn rate and increases revenue from increasing customer satisfaction.

So what do you think of this new mantra in marketing? We would love to know your thoughts.

4 Cs of Marketing – The Marketing Mix

R.F. Lauterborn (1993) proposed a 4 Cs classification to address the growing focus of marketing strategist on the consumer. While the 4 Ps framework for defining the marketing mix has been popular for decades, the four Cs have gained in terms of importance, considerably in recent times.

The 4 Cs consists of CONSUMER, COST, CONVENIENCE and COMMUNICATION.

4Cs_Marketing_Mix_L

The roots of the 4 Cs of marketing can be traced back to the classical 4 Ps marketing mix. However, with the onset of database marketing, the focus has shifted in marketing from a consumer transactional view-point to a consumer relationship viewpoint (and very recently consumer engagement). However, the basic focal strategic issues remain unchanged at its very core.

The details which a manager designing a marketing mix using the four Cs needs to focus on are as follows:

  • Clients / Consumer (customer) is the king. No longer can products be developed and pushed to the consumer in the hope of conversion of a purchase decision. Gone are those days when consumers had to buy products to satisfy needs for a simple lack of substitute. The market is over saturated with great products. Consumer behavior needs to be studied thoroughly from the product development phase itself. The attributes of any product should be almost built-to-order in current times, and substantial inputs should be taken from primary market research.
  • Pricing is crucial. The pricing strategies undertaken by any product development company should keep the perceived value of the product, to the consumer, in mind while deciding a pricing strategy.  Effort should be made to estimate a customer’s  tradeoffs  among  multiple attributes in a product so as to arrive at the perceived total value while  pricing  a  multi-attribute product.
  • Convenience of the service delivery or product purchase location is crucial. The place utility often is a differentiating factor in the success stories of many a promising product. It becomes extremely important especially if the product purchase is a low engagement decision making process, like that of purchase of day-to-day products.
  • Communication is crucial.  As opposed to the initial focus of brand promotion, communication of the brand personally so as create a brand awareness and brand cognition is extremely crucial for a sustainable pull strategy.  Every brand is perceived to have a personality. Communicating the same using proper communication channels becomes crucial for the success of any marketing campaign.

 

While the focus of designing a marketing mix has shifted from the 4 Ps to the 4 Cs, it is extremely crucial to understand that the underlying core remains the same. The major shift has been due to a paradigm change of focus from the product or service design to understanding the customer. This is where a 4 Cs strategy scores over the 4 Ps or 7 Ps strategy.

By the way, did you read our article on the 7 P’s of Services Marketing?

Top Social Media Marketing Channels

In an independent survey conducted by Business Fundas, the top channels as perceived by social media marketers were identified and ranked. For this study, the over 20,000+ twitter followers (and also other social media marketers on twitter) were presented with a questionnaire for understanding the perceived importance of the various media for these marketing experts with a conversion of 1034 respondents for the study. Based on the results, the following results were obtained:

The top social media marketing channel based on our survey results was search engine. It performed extremely well as a channel to improve brand or service or product awareness, as well as a channel to improve conversion rates from potential leads to actual customer engagement.

The results for the best channel for creation of awareness for the service or products are as displayed in the graph below:

As these results indicate, some of the more popular and initially perceived important social media channels like Twitter, Digg, Reditt, Stumbleupon received lesser votes in confidence when it came to actual performance in terms of a channel to increase service or product or brand awareness.

Similarly, the top social media resources to convert potential customers to buyers are as follows:

As is evident from the results of the graph, the top resource, as perceived by the social media marketers in both cases are search engines. This was closely followed by Facebook and Youtube. However, some of the more popular and initially perceived important social media channels like Twitter, Digg, Reditt, Stumbleupon received lesser votes in confidence when it came to actual performance. Maybe since these are perceived as more of a media for capturing interesting sources of stories and / or multimedia, they are losing their importance as channels of social media marketing.

Do let us know what are your feedback about the social media marketing channels. How do YOU draw traffic to your blog? Is that a sustainable source of traffic or does that depend on daily marketing efforts and link exchanges amongst colleagues to promote your content? Do let us know.