Video Marketing is the Future of Marketing in the USA

Marketing is a widely used term to describe the means of communication between the company and the consumer audience
Marketing is the adaptation of the commercial activities and use of institutions by the organizations with a purpose to induce behavioral change on a short-term or permanent basis
[1] The American Marketing Association most recently defined Marketing as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
The techniques used in marketing include choosing target markets through market analysis and market segmentation, as well as understanding methods of influence on the consumer behavior
The marketing planning creates strategies for the company to place advertising to the dedicated consumer
From a societal point of view, marketing provides the link between a society’s material requirements and its economic patterns of response
This way marketing satisfies these needs and wants through the development of exchange processes and the building of long-term relationships
In the case of nonprofit organization marketing, the aim is to increase the deliver an ethos message about the organization’s services to the applicable audience
Governments often employ marketing to communicate messages with a social purpose, such as a public health or safety message, to citizens
The marketing orientation evolved from earlier orientations, primarily the production orientation, the product orientation and the selling orientation
Such an orientation may suit scenarios in which a firm holds dead stock, or otherwise sells a product that is in high demand, with little likelihood of changes in consumer tastes that would diminish demand
Recent approaches in marketing include relationship marketing which focuses on the consumer, business marketing or industrial marketing which focuses on an organisation or institution and social marketing with focus on benefits to society
[6] Newer forms of marketing also use the internet and are therefore called internet marketing or more generally e-marketing, online marketing, ‘digital marketing’, search engine marketing, or ‘desktop advertising’
It attempts to perfect the segmentation strategy used in traditional marketing
It targets its audience more precisely, and is sometimes called personalized marketing or one-to-one marketing
‘Direct marketing’ is used by those organisations, such as insurance services and health clubs, that have a defined customer or membership base they wish to develop strong, on-going relationships with via personalised communications – traditionally through ‘direct mail’ (postal) communications and more recently, via e-mail
Additionally, direct marketing will employ broadcast mechanisms such as press, print or television campaigns with a strong call to action to attract new customers or members
Internet marketing is sometimes considered to be broad in scope, because it not only refers to marketing on the internet, but also includes marketing done via e-mail, wireless media as well as driving audiences from traditional marketing methods like radio and billboard to internet properties or a landing page
The marketing mix was proposed by professor E
Jerome McCarthy in the 1960s
[7] It consists of four basic elements called the “four P’s”
Product is the first P representing the actual product
Price represents the process of determining the value of a product
Place represents the variables of getting the product to the consumer such as distribution channels, market coverage and movement organization
The last P stands for Promotion which is the process of reaching the target market and convincing them to buy the product
The four Ps determine how marketing satisfies consumer needs
They are considered controllable marketing mix factors, meaning that they can change or be altered as needed
Habits, lifestyle, and diet are all considered to be controllable risk factors
In the 1990s, the concept of four C’s was introduced as a more customer-driven replacement of four P’s
[8] There are two theories based on four Cs: Lauterborn’s four Cs (consumer, cost, communication, convenience)[9] and Shimizu’s four Cs (commodity, cost, communication, channel) in the 7Cs Compass Model (Co-marketing)
[10][11][12][13]
In addition to the controllable marketing mix factors, there are uncontrollable factors called environmental forces
The external influences are the forces that affect the characteristics of the marketing strategies to which marketeers adapt
Amongst others they include: regulatory, economic, social, political environmental, competitive and technological
• Regulatory: This refers to laws and legality (governmental policies) that may affect the way marketing can be characterized
For example, government restriction on the importation of a particular product might hinder the marketers playing in that particular field
Various trends in the economic business cycle, including inflation, recessions, deficit or income level
Each of these factors can have a direct impact on marketing which may have to be re-evaluated and overhauled as a result
• Social: The social forces refer to the structure and dynamics of individuals and groups and their behaviors, beliefs, thought patterns and lifestyles, friendships, etc
When consumers change their needs and wants, this directly affects marketing strategies
• Political: The socio-economic conditions are closely related to the state of the governmental institutions
Depending on the governmental impact on bureaucracy, corruption, freedom of speech and other limitations (or opportunities), the marketing strategies will adapt to the political conditions
• Competitive: Competition refers to the numbers of similar competitive product brands
A new competitor entering the market will directly affect the marketing strategies of the incumbent companies
Firms offering similar services or products often achieve differentiation through marketing, positioning and branding
• Technology
The marketing strategies often adapt to the pace of development of the consumer demand and exponential technological progression
A firm in the market economy survives by producing goods and services that persons are willing and able to buy
Consequently, ascertaining consumer demand is vital for a firm’s future viability and even existence as a going concern
Many companies today have a customer focus (or market orientation)
This implies that the company focuses its activities and products on consumer demands
Generally, there are three ways of doing this: the customer-driven approach, the market change identification approach and the product innovation approach
In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions
No strategy is pursued until it passes the test of consumer research
Every aspect of a market offering, including the nature of the product itself, is driven by the needs of potential consumers
The starting point is always the consumer
The rationale for this approach is that there is no reason to spend R&D (research and development) funds developing products that people will not buy
History attests to many products that were commercial failures in spite of being technological breakthroughs
A formal approach to this customer-focused marketing is known as SIVA[17] (Solution, Information, Value, Access)
This system is basically the four Ps renamed and reworded to provide a customer focus
The SIVA Model provides a demand/customer-centric alternative to the well-known 4Ps supply side model (product, price, placement, promotion) of marketing management
If any of the 4Ps were problematic or were not in the marketing factor of the business, the business could be in trouble and so other companies may appear in the surroundings of the company, so the consumer demand on its products will decrease
However, in recent years service marketing has widened the domains to be considered, contributing to the 7P’s of marketing in total
The other 3P’s of service marketing are: process, physical environment and people
Some consider there to be a fifth “P”: positioning
See Positioning (marketing)
Some qualifications or caveats for customer focus exist
They do not invalidate or contradict the principle of customer focus; rather, they simply add extra dimensions of awareness and caution to it
The work of Christensen and colleagues[18] on disruptive technology has produced a theoretical framework that explains the failure of firms not because they were technologically inept (often quite the opposite), but because the value networks in which they profitably operated included customers who could not value a disruptive innovation at the time and capability state of its emergence and thus actively dissuaded the firms from developing it
The lessons drawn from this work include:
Other caveats of customer focus are:
In this sense, a firm’s marketing department is often seen as of prime importance within the functional level of an organization
Information from an organization’s marketing department would be used to guide the actions of other departments within the firm
As an example, a marketing department could ascertain (via marketing research) that consumers desired a new type of product, or a new usage for an existing product
With this in mind, the marketing department would inform the R&D (research and development) department to create a prototype of a product or service based on the consumers’ new desires
The production department would then start to manufacture the product, while the marketing department would focus on the promotion, distribution, pricing, etc
of the product
Additionally, a firm’s finance departments would be consulted, with respect to securing appropriate funding for the development, production and promotion of the products
Inter-departmental conflicts may occur, should a firm adhere to the marketing orientation
Production may oppose the installation, support and servicing of new capital stock, which may be needed to manufacture a new product
Finance may oppose the required capital expenditure, since it could undermine a healthy cash flow for the organization
[citation needed]
Herd behavior in marketing is used to explain the dependencies of customers’ mutual behavior
The Economist reported a recent conference in Rome on the subject of the simulation of adaptive human behavior
[19] It shared mechanisms to increase impulse buying and get people “to buy more by playing on the herd instinct
” The basic idea is that people will buy more of products that are seen to be popular, and several feedback mechanisms to get product popularity information to consumers are mentioned, including smart card technology and the use of Radio Frequency Identification Tag technology
A “swarm-moves” model was introduced by a Florida Institute of Technology researcher, which is appealing to supermarkets because it can “increase sales without the need to give people discounts
” Other recent studies on the “power of social influence” include an “artificial music market in which some 19,000 allegations downloaded previously unknown songs” (Columbia University, New York); a Japanese chain of convenience stores which orders its products based on “sales data from department stores and research companies;” a Massachusetts company exploiting knowledge of social networking to improve sales; and online retailers such as Amazon
com who are increasingly informing customers about which products are popular with like-minded customers
Marketing research involves conducting research to support marketing activities, and the statistical interpretation of data into information
This information is then used by managers to plan marketing activities, gauge the nature of a firm’s marketing environment and obtain information from suppliers
Marketing researchers use statistical methods such as quantitative research, qualitative research, hypothesis tests, Chi-squared tests, linear regression, correlations, frequency distributions, poisson distributions, binomial distributions, etc
to interpret their findings and convert data into information
The marketing research process spans a number of stages, including the definition of a problem, development of a research plan, collection and interpretation of data and disseminating information formally in the form of a report
The task of marketing research is to provide management with relevant, accurate, reliable, valid, and current information
A distinction should be made between marketing research and market research
Market research pertains to research in a given market
As an example, a firm may conduct research in a target market, after selecting a suitable market segment
In contrast, marketing research relates to all research conducted within marketing
Thus, market research is a subset of marketing research
Staying ahead of the consumer is an important part of a marketer’s job
It is important to understand the “marketing environment” in order to comprehend the consumers concerns, motivations and to adjust the product according to the consumers needs
Marketers use the process of marketing environmental scans, which continually acquires information on events occurring outside the organization to identify trends, opportunities and threats to a business
The six key elements of a marketing scan are the demographic forces, socio-cultural forces, economic forces, regulatory forces, competitive forces, and technological forces
Marketers must look at where the threats and opportunities stem from in the world around the consumer to maintain a productive and profitable business
The market environment is a marketing term and refers to factors and forces that affect a firm’s ability to build and maintain successful relationships with customers
Three levels of the environment are: Micro (internal) environment – forces within the company that affect its ability to serve its customers
Meso environment – the industry in which a company operates and the industry’s market(s)
Macro (national) environment – larger societal forces that affect the microenvironment
Market segmentation pertains to the division of a market of consumers into persons with similar needs and wants
For instance, Kellogg’s cereals, Frosties are marketed to children
Crunchy Nut Cornflakes are marketed to adults
Both goods denote two products which are marketed to two distinct groups of persons, both with similar needs, traits, and wants
In another example, Sun Microsystems can use market segmentation to classify its clients according to their promptness to adopt new products
Market segmentation allows for a better allocation of a firm’s finite resources
A firm only possesses a certain amount of resources
Accordingly, it must make choices (and incur the related costs) in servicing specific groups of consumers
In this way, the diversified tastes of contemporary Western consumers can be served better
With growing diversity in the tastes of modern consumers, firms are taking note of the benefit of servicing a multiplicity of new markets
Market segmentation can be viewed as a key dynamic in interpreting and executing a logical perspective of Strategic Marketing Planning
The manifestation of this process is considered by many traditional thinkers to include the following; Segmenting, Targeting and Positioning
Market research, as a sub-set aspect of marketing activities, can be divided into the following parts:
By these definitions, an example of primary research would be market research conducted into health foods, which is used solely to ascertain the needs/wants of the target market for health foods
Secondary research in this case would be research pertaining to health foods, but used by a firm wishing to develop an unrelated product
Primary research is often expensive to prepare, collect and interpret from data to information
Nevertheless, while secondary research is relatively inexpensive, it often can become outdated and outmoded, given that it is used for a purpose other than the one for which it was intended
Primary research can also be broken down into quantitative research and qualitative research, which, as the terms suggest, pertain to numerical and non-numerical research methods and techniques, respectively
The appropriateness of each mode of research depends on whether data can be quantified (quantitative research), or whether subjective, non-numeric or abstract concepts are required to be studied (qualitative research)
There also exist additional modes of marketing research, which are:
Typical market research methods are:
1) Qualitative research methods
2) Quantitative research methods
The marketing planning process involves forging a plan for a firm’s marketing activities
A marketing plan can also pertain to a specific product, as well as to an organization’s overall marketing strategy
Generally speaking, an organization’s marketing planning process is derived from its overall business strategy
Thus, when top management are devising the firm’s strategic direction or mission, the intended marketing activities are incorporated into this plan
There are several levels of marketing objectives within an organization
The senior management of a firm would formulate a general business strategy for a firm
However, this general business strategy would be interpreted and implemented in different contexts throughout the firm
The field of marketing strategy considers the total marketing environment and its impacts on a company or product or service
The emphasis is on “an in depth understanding of the market environment, particularly the competitors and customers
A given firm may offer numerous products or services to a marketplace, spanning numerous and sometimes wholly unrelated industries
Accordingly, a plan is required in order to effectively manage such products
Evidently, a company needs to weigh up and ascertain how to utilize its finite resources
For example, a start-up car manufacturing firm would face little success should it attempt to rival Toyota, Ford, Nissan, Chevrolet, or any other large global car maker
Moreover, a product may be reaching the end of its life-cycle
Thus, the issue of divest, or a ceasing of production, may be made
Each scenario requires a unique marketing strategy
Listed below are some prominent marketing strategy models
A marketing strategy differs from a marketing tactic in that a strategy looks at the longer term view of the products, goods, or services being marketed
A tactic refers to a shorter term view
Therefore, the mailing of a postcard or sales letter would be a tactic, but changing marketing channels of distribution, changing the pricing, or promotional elements used would be considered a strategic change
A marketing strategy considers the resources a firm has, or is required to allocate in effort to achieve an objective
Marketing Strategies include the process and planning in which a firm may be expected to achieve their company goals, in which usually involves an effort to increase revenues or assets, through a series of milestones or benchmarks of business and promotional activities
The marketing activity and process of identifying a market problem or opportunity, and developing a solution based on market research, segmentation and supporting data
Positioning may refer the position a business has chosen to carry out their marketing and business objectives
Positioning relates to strategy, in the specific or tactical development phases of carrying out an objective to achieve a business’ or organization’s goals, such as increasing sales volume, brand recognition, or reach in advertising
A marketing firm must ascertain the nature of customers’ buying behavior if it is to market its product properly
In order to entice and persuade a consumer to buy a product, marketers try to determine the behavioral process of how a given product is purchased
Buyer behavior in the digital age is assessed through analytics and predictive modelling
The analysis of buyer behavior through online platforms includes Google Analytics and vendor side software such as Experian
The psychology of marketing is determined through the analysis of customer perception pertaining to brands
Marketing theory holds that brand attributes is primarily a matter of customer perception rather than product or service features
Buying behavior is usually split into two prime strands, whether selling to the consumer, known as business-to-consumer (B2C), or to another business, known as business-to-business (B2B)
This mode of behavior concerns consumers and their purchase of a given product
For example, if one imagines a pair of sneakers, the desire for a pair of sneakers would be followed by an information search on available types/brands
This may include perusing media outlets, but most commonly consists of information gathered from family and friends
If the information search is insufficient, the consumer may search for alternative means to satisfy the need/want
In this case, this may mean buying leather shoes, sandals, etc
The purchase decision is then made, in which the consumer actually buys the product
Following this stage, a post-purchase evaluation is often conducted, comprising and an appraisal of the value/utility brought by the purchase of the sneakers
If the value/utility is high, then a repeat purchase may be made
This mode of behavior involves one business marketing a product or service to another business
[27] An example would be a business buying either wholesale from other businesses or directly from the manufacturer in contracts or agreements
B2B marketing doesn’t always involve wholesale products
For example, it could be a business selling business services such as a website or digital marketing
B2C and B2B behavior are not mutually exclusive terms, as similarities and differences exist, with some key differences listed below:
Marketing roles, titles, and responsibilities differ, often significantly, between B2B and B2C companies
Marketing roles are often defined by the size of the company and the number of products
At the smallest company size, a general marketer must do everything from shape the product to generate awareness
As the company grows larger, roles start to become more specialized
For example, the product management role can split so that the product manager would focus on designing the product experience and functionality, while a product marketer would package and price the product
The mind map to the right details further roles and responsibilities including: corporate marketing, solution marketing, field marketing, and technical marketing
Marketing management can also rely on various technologies within the scope of its marketing efforts
Computer-based information systems can be employed, aiding in better processing and storage of data
Marketing researchers can use such systems to devise better methods of converting data into information, and for the creation of enhanced data gathering methods
Information technology can aid in enhancing an MKIS’ software and hardware components, and improve a company’s marketing decision-making process
In recent years, mobile devices have gained significant market share, while desktop and laptop devices have seen a decline
[28] Information technology typically progresses at a fast rate, leading to marketing managers being cognizant of the latest technological developments
Today smart phones are at the center of new mobile marketing trends, delivering the right message to the right person at the right time
A firm can lose out to competitors should it ignore technological innovations in its industry
Technological advancements can lessen barriers between countries and regions
Using the World Wide Web, firms can quickly dispatch information from one country to another without much restriction
Prior to the mass usage of the Internet, such transfers of information would have taken longer to send, especially if done via snail mail, telex, etc
Recently, there has been a large emphasis on data analytics
Data can be mined from various sources such as online forms, mobile phone applications and more recently, social media
Internet marketing is another branch of online marketing, where SEO (Search Engine Optimisation) is regarded as an effective method of increasing your website’s presence in organic searches for creating potential customers
Services marketing relates to the marketing of services, as opposed to tangible products
A service (as opposed to a good) is typically defined by the paraphrase of 5 I’s :
Inseparability – The customer cannot be separated from the service and therefore, the use of it is inseparable from its purchase (i
, a service is used and consumed simultaneously)
Intangibility – It does not possess material form, and thus cannot be touched
Yet, many services are directly connected to products
Services (compared with goods) can also be viewed as a spectrum
Not all products are either pure goods or pure services
An example would be a restaurant, where a waiter’s service is intangible, but the food is tangible
Inconsistency (Variability) – Every delivery of the service will be different
Furthermore, the use of a service is inherently subjective, meaning that several persons experiencing a service would each experience it uniquely
Inventory (Perishability) – the service cannot last
Involvement – customer can tailor the service while using it (e
hairdresser)
For example, a train ride can be deemed a service
If one buys a train ticket, the use of the train is typically experienced concurrently with the purchase of the ticket
Although the train is a physical object, one is not paying for the permanent ownership of the tangible components of the train
Right-time marketing is an approach to marketing which selects an appropriate time and place for the delivery of a marketing message
As the number of vendors and delivery channels has increased, customers demand a right time and place for accepting messages and only pay attention to messages when and how it is convenient for them
[29][30] These tools generally fall into “reactive” or push offers (e
, someone searches “pizza” and receives an offer from a local restaurant) and new “predictive” models where a Intelligent Personal Assistant understands past preferences and delivers related products or services
Guerrilla marketing is an advertising strategy in which low-cost unconventional means (graffiti or street art, sticker bombing, flash mobs) are used, often in a localized fashion or large network of individual cells, to convey or promote a product or an idea
Digital marketing is an umbrella term for the targeted, measurable, and interactive marketing of products or services using digital technologies to reach and convert leads into customers
The key objective is to promote brands, build preference and increase sales through various digital marketing techniques
It is embodied by an extensive selection of service, product and brand marketing tactics, which mainly use the Internet as a core promotional medium, in addition to mobile and traditional TV and radio
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