Guest post: Any press is good press: The worst marketing tactics that paid off

By James Maloney

PD

Do controversial ads really work? Some marketers believe that they do. In fact, they believe that negative press is a good thing. People just love mistakes, blunders and bloopers. This may be true, and there are ads that have been able to get away with it, but then, the risk of running controversial ads may be just a little bit too great.

Some totally bad ads got away with it by making the brand popular and increasing sales. Unfortunately, it can easily be attributed to luck more than the marketing tactic itself. For example: The Beatles came out with the "Yesterday" and "Today" album. Now, the Beatles are the Beatles. These guys were the most popular band at the time. However, the album had a photo of the Beatles smiling with mutilated corpses of dolls scattered around them.

There were too many complaints about the cover of the album that they just had to recall it. Fortunately, the band was so famous that this controversy even made them more popular. Today, if you can find a copy of that album with the mutilated dolls cover, you can easily sell it for thousands of dollars.

It was sheer luck that the marketing tactic, although a big failure, turned out to be a success. This is probably why rock bands today love making controversial albums. However, we need to remember that the Beatles were so famous and everything they did seemed to be perfect. If anyone could get away with this marketing blunder, they could.

There are also those commercials that are extremely annoying. Webuyanycar had a commercial that was voted to be the most annoying in the UK. Fortunately, the business of the company was tied in to this type of commercial. Let’s face it, if you had a car that totally annoyed you, you would want to get rid of it and guess who you would think of first. You would think of that commercial that annoyed you too.

Marketing tactics that end up being very controversial will work, but not all the time. These tactics will only work in the right time and for the right product. Most of the time, controversial commercials only create controversy and may not increase sales at all. How would you consider a marketing tactic to be a success if it does not improve sales?

There are plenty of marketing techniques that will work and they do not have to be controversial. There are ads from decades ago that people still remember and these weren’t controversial at all.

When you use controversy to market a product, there is a very big chance that the product will end up negatively in the public’s eye. This is a risk that some marketers are willing to take in order to boost sales forecasts, but would the business be able to take this risk? Controversy can be a good choice, but not all of the time and marketers should remember this when marketing their brands or products.

This guest post is contributed by James Maloney, author of the Good Business Blog.

How behavioral finance influences stock market investing

 Transition from normal to abnormal market behavior 

Image attribution: Sharronzabary; CC BY-SA 3.0

Stock market investing and financial decision making is linked to behavioral science. Human behavior underlies quantitative models, algorithm based trading, fundamental analysis, and valuation equations in finance. In other words, it is another important sphere of finance that is relevant to stock market events. Since human behavior cannot currently be scientifically predicted on a continual basis as evident in the inability of game theory and political analysis to do so, the 'next best thing' may be behavioral finance in the sense it can supplement scientific evaluation. 

Behavioral finance

The field of behavioral finance postulates and theorizes psychological motivations form a basis for individual financial decisions. A number of different concepts relate to this, of which optimism bias is a well known one. Broadly speaking optimism bias is a human trait that looks at life and aspects of  it such as the stock market with a less than realistic assessment. Whether or not attributes of behavioral finance studied are human adaptations or instinct is perhaps given less weight than their relevance to finance. For example, how 'compartmentalization', a theory of identity discussed by Psychlopedia and others, can influence investing behavior in the stock market.

Market psychology

Market psychology is an aspect of behavioral finance. Market psychology refers to specific behavioral decisions that are reflected by stock markets in a way that defies purely numerical financial logic. Market psychology is generally associated with aggregated emotions such as fear, happiness, frustration and so on. Since humans are inevitably both logical, and emotional beings among other things, it is for the most part impossible to be quantitatively logical 100 percent of the time, which is when emotions and other psychological decision making processes can take hold of the stock market.

Individual psychology

Individual psychology is the component element of market psychology. A number of non-mathematical decision making techniques that 'behavioral finance' calls heuristics can affect investors' financial decisions. An example of a heuristic decision is one based on pattern recognition. Heuristics are an attribute of Prospect theory which according to Thayer Watkins of Saint Joss State University, states people are more likely to choose less money if the probability of acquiring it is 100 percent, but will take a greater risk for more money if the higher probability is lower than 100 percent in some cases.

Consumer behavior

On the buying side of the equation is consumer behavior. This relates to the psychology of consumerism which itself indirectly impacts the stock market through consumer expenditures, an economic statistic often consulted prior to stock trading. According to the University of Southern California at Marshall, consumer behavior deals with matters such as what social influences, thought processes  and perceptions affect buyer behavior. Moreover consumer behavior studies how these influences can themselves be affected by advertising and market research.

Are martini glass logos a good idea?

Corporate logos on martini glasses are a form of advertising ideally backed by strong marketing and marketing research. This article will discuss the corporate logo on Martini glasses in terms of 1) target demographic, 2) logo objective and 3) product branding. The decision to utilize corporate logos may first be carried out in a sample population such as a city or town prior to expanding the campaign, and after researching the feasibility, and affect the martini glass logo advertising campaign has. The reason for testing the advertising on a smaller group is to validate the statistical, quantitative and/or qualitative market research.

 Image source: 'Kyle May', CC BY SA-2.0

The martini drinker: What demographics is the logo aimed at

The objective of utilizing martini glasses with brand names should conform with marketing and corporate goals. For example, increased sales of a product, higher product exposure, creation of brand image etc. Since martini glasses are quite specific in usage, location of use and demographic, the product should be aimed at those consumers most likely to drink martinis. Some attributes of martini drinkers are the following:

• Pro-alcohol

• Over 21 years old

• Worldly or informed

• Drinkers of Gin or Vodka

• Partial to complimentary products ex. Napkins

These are just a few common aspects that may apply to martini drinkers that illustrate who corporate logos on martini glasses would appeal to. Moreover, just are the persons more likely to drink martinis, there are also those who are less likely to drink martinis such as the following:

• Children

• Non-drinkers 

• Religious Muslims

• Health advocates

Thus the corporate logo on martini glasses targets martini drinkers who tend to fit into a specific demographic grouping. This helps eliminate the range of products less likely to benefit from martini glass logos and assists in clarifying the objective of the logo. The objective of the logo should not only conform to the identified target market but also influence or appeal to that group. Otherwise, the target market has been identified but advertised to incorrectly.

The logo: Defining the objective of the martini glass

The objective of a martini glass logo is obviously advertising and marketing, and perhaps less obviously to indicate the type of glass, country of origin and other manufacturing information. Generally however, the objective is creating brand awareness. Determining how best to generate brand awareness involves 1) analyzing the market 2) weighing pros and cons and 3) implementation of the advertising campaign. These factors should ideally be considered prior to distribution of martini glasses. Some possible objectives to consider when utilizing logos on martini glasses are listed below:

• Affect on revenue

• Congruence with corporate branding as a whole

• Increases in brand loyalty

• Improved consumer awareness

• Positive cost/benefit proportions and profit margin

• Enhanced product perception

After analyzing the market, and performing a SWOT analysis it should become more clear to a company's marketing team how useful a logo on martini glasses is likely to be. Moreover, research should be aimed at measuring the liklihood of the above objectives being achieved. The research may involve product testing, consumer surveys, branding cost comparisons, production and logistical feasibility studies and so forth. If the it becomes evident that the corporate objectives, applicable time horizon and/or strategic objectives of a company can benefit from the martini glass logos, it may be worth while to implement a campaign that includes the glasses.

Product branding: How martini glass logos affect the product

The martini glass may be branded in a number of ways and the martini glass itself doesn't necessarily have to have a logo on it. If a company is giving away free glasses to promote itself then a logo may not be needed. Moreover, if a business is promoting an event or providing financing of an event, then the martini glasses along with martinis itself be advertising enough. Some companies that might benefit from use of martini glasses and or logos on martini glasses are the following because they are more likely to appeal to the aforementioned demographic.

• Alcohol producers

• Bars and hospitality venues

• Event marketers

• Corporate sponsors

• Artists, artisans, or glass blowers

• Martini glass distributors

The above list is not necessarily exhaustive of who might benefit from corporate logos on martini glasses but is indicative of the most obvious of beneficiaries. To go beyond these types of companies could involve more marketing risk and hence necessitate more market research that costs money. This is not to say a whole new way of bringing a somewhat un-marketed product to the forefront of a new marketing campaign isn't possible. For example, consider the image of the martini itself. A cocktail among many it has acquired a reputation through history and film. Without that type of branding, the martini might very well have no significant pre-existing brand value at all.

In other words, martinis themselves were branded long ago and add value to any branding on top of the martini's existing brand equity. How the martini is portrayed, its brand image and when it is used can all influence the affect of the martini glass logo. Consequently, putting a corporate logo on a Martini glass would ideally be considered not just in terms of appearance but also context. Other factors relevant to and surrounding the martini glass' logo include a number of aesthetic features.

• Glass shape

• Color and size of the martini glass

• Style and thickness of the glass

• Setting in which the glass is used ex. Art exhibit

• Sponsorship of the event in which martini is used

• Free distribution of the glasses

Summary

Martini glass logos are a form of advertising that may or may not be conducive to a particular company's marketing objectives and brand image. Specific demographic groups are more likely to be influenced and/or persuaded by martini glass logos than others. The objectives of martini glass logos should be clearly defined and identified prior to ascertaining the forecasted benefits of their use. 

These possible benefits can be determined through market research. Market research in tandem with corporate strategy an goals can help establish feasibility, parameters, features and distribution of the martini logos in concept before implementation of the actual advertising campaign, thus reducing possible risk to the company's objectives and advertising goals.

Marketing: Understanding segmentation variables

To understand what segmentation variables in marketing are, it helps to first know what market segmentation is. Market segmentation is the analysis of population demographics in marketing research so they can be categorized in specific ways. These specific ways of categorization in market segmentation are why segmentation variables are needed and used. Moreover, market segmentation variables define both how a demographic will be segmented and categorized. Market segments can also be divided into sub-categories or branched-categories in which additional variables are added to sub-sets of the market segment for more elaborate identification.


What segmentation variables are

Segmentation variables help marketers and/or market researchers refine target marketing and market segmentation to pre-determined goals and/or inquiries regarding the market segment. These variables can include and/or exclude a wide range of data depending on what the market researcher wants to find out. Some commonly used market segmentation variables include age, gender, and zip code. Segmentation variables span a range of functions, intents and descriptions and include the following types as also illustrated at Netmba:

• Geographic variables ex-zip code, area code, city

• Consumer behavior ex-spending habits, favorite products

• Interest information ex-attitudes, beliefs, lifestyle

• Population information ex-gender, age, income, occupation

Illustrating further, in times when basic demographic is not enough to segment a market additional variables are needed to further focus the categorization of potential and existing client profiles. In such cases the marketer may want to know about product preferences, income level, occupation, and other more detailed aspects of market segmentation. For example, if a marketer knows clients for ABC store generally come from 3 surrounding zip codes a geographic market segmentation is defined. However, other than this no additional information is available about the market. Questions such as why they shop at ABC store, when they shop there, and what they shop for may also be useful to the market researcher.

How segmentation variables are used

Market segmentation variables are used to answer specific questions and provide more detailed information about existing and potential clients in the context of business applications. To use the variables correctly proper statistical methods, and data collection techniques should be used so as to not disproportionately gather information, incorrectly collect that information, or haphazardly analyze and utilize it. 

Good segmentation variables address the budget, product, brand equity, revenue goals and other important aspects of business operations. If the wrong variables are used in the wrong way during market segmentation, the questions answered may not be appropriate for the company's objectives. Market segmentation variables are thus used in the following ways:

• Assist in determining market information

• Help companies identify who to market to

• Provide criteria to more specifically categorize existing market(s)

• Are used in statistical analysis and/or additional market research

• Allow companies to fine tune their marketing budgets and expenditures

To illustrate further, consider the ABC company once again. ABC company wants to find out three things, 1) who buys its products, 2) why these people buy their products and 3) what products they buy. In order to do this ABC company first defines its goals i.e. to answer these 3 questions, then creates a way to do this, ie. data gathering. Following this the data collected is analyzed using tools like histograms, regression analysis, and further qualitative and/or quantitative research. When the information is compiled and analyzed, a more detailed overview and understanding of the company's market should be clear.

Summary

This article has discussed market segmentation variables in terms of what they are and how they are used in the context of business decision-making. Moreover, market segmentation variables are data that reflect unique and specific aspects of a company's existing and/or potential market. These variables are gathered using information acquisition techniques, Following this, the information is processed through analysis designed to answer and address a businesses key objectives and concerns. Once the information is analyzed and presented, the company may then have an increased probability of making more sound financial, operational marketing and advertising decisions.

Sources:

1. http://www.businessplans.org/Segment.html
2. http://www.netmba.com/marketing/market/segmentation/

Consumer Buying Behavior and Market Segmentation

The relationship between consumer behavior and market segmentation reflects the interaction between a marketing program and consumer psychology. Marketers seek to identify large population groups known as 'market segments', and then understand consumer behavior within these market segments  in order to develop a marketing campaign.

Some models of consumer behavior such as the 'Fishbein model' tend to focus on measurement of pre-cursors to consumer behavior.(1) This is effective to an extent, however, consumer behavior itself is not immutable and unchangeable, and can be influenced by marketing such as with product placement.(4) Moreover, not only can consumer behavior change, but so too can marketing itself implying a possible relationship between marketing and consumer behavior in the determination of market segments. 

Consumer behavior

To better understand consumer behavior and market segmentation reflect on the two words 'consumer' and 'behavior' separately; a consumer is one that consumers products or services and behavior is how a person makes decisions and conducts oneself in various situations. Factors that influence behavior and by extension, consumer behavior are listed below:

• Belief
• Socialization
• Need(s)
• Ability
• Requirement(s)

Consumer behavior is how a person makes decisions and conducts oneself in relation to consumption of products and services. This itself is a segmentation of behavioral analysis and behavior itself spans many an activity and reflects multiple perspectives that often influence other aspects of behavior.

Market segmentation

Market segmentation is the division of a large group of consumers using specific demographic attributes. Market segmentation attempts to segment markets in such a way that consumer preferences and decisions can be better understood and identified. This assists marketers in knowing 1) who is more likely to buy a certain product or service, 2) what conditions are needed for that buying behavior and 3) what the best way to market a product or service is. Below are some different ways to segment a market:

• Age
• Income
• Gender
• Ethnicity
• Religion

In actuality a market can be segmented by consumer behavior hence the relationship between consumer behavior and market segmentation. However, if this does not adequately affect decisions that might correlate highly to demographics, then the segmentation may be incomplete or ineffective.

To illustrate the previous point, if a market is segmented by whether or not they use deodorant. Moreover, if the market is only segmented by this, not taking in to account demographic factors such as gender can be disastrous for a company's marketing campaigns as men and woman's body's require different products not just a one size fits all product.

Integration of consumer behavior with segmentation

In integrating consumer behavior with segmentation it helps if the marketer has an in depth knowledge of the market because statistics alone do not allow for intuitive reasoning. Intuitive reasoning fills in gaps of market segmentation with discerning probability versus statistically improbable unknowns.

Since consumer behavior and segmentation are dynamic and involve many variables, it is unrealistic to assume a basic segmentation by demographics and core beliefs are going to be the only factors that influence consumer decisions.

This is evident in the 'Fishbein model of consumer behavior' which according to a Government study on Driver attitudes is not only a pre-cursor to consumer behavior but just one of several other influential factors. (1)  This inherently means consumer behavior itself is not always identifiable in relation to a single cause. Some factors that can influence consumer beliefs and subsequent behavior are listed hereafter.

• Attitude
• Intention
• Reasoning
• Mood
• Activity

In light of the complexity of consumer behavior, market segmentation may often end up being a rudimentary or scaled down representation of what is really going on. (2) When marketing has a measurably greater influence on the formation of consumer behavior, then not only would targeting and identification of market segments be more accurate, but marketing programs themselves would have more front end influence on consumer behavior.

Sources:

1. http://bit.ly/cwRX7X (Federal Highway Administration consumer research)
2. http://bit.ly/acrFFa (USC Marshall: Lars Perner: Consumer behavior)
3. http://bit.ly/9Har7j (Library of Congress: Market Segmentation)
4. http://bit.ly/bh2kfA (Wisconsin School of Business: Bill Shepard)

Pros and cons of the bait and switch technique

Bait and switch advertising is a method of generating business traffic for the purpose of introducing new customers to additional products that may otherwise have gone unnoticed or have otherwise been promoted less. Some forms of bait and switch are legal whereas other forms are not. Knowing the difference between legal and illegal bit and switch advertising, in addition to realizing when to use the bait and switch selling technique and with which product, is essential to its effectiveness as an advertising tool.

Pros of bait and switch:

• Promotes customer satisfaction

Legitimate reasons for a switch include being sold out of sufficient stock, showing a customer something they might also be interested in, and replacing or upgrading a product or service. These reasons are ways to improve customer satisfaction and service because they exemplify the willingness of the business to assist the customer identify a suitable alternative. For example, if a customer sees an advertisement for a cell phone then goes into look at that phone, their intent may only be to investigate the product further because they're in the market for a new phone. Switching sales assistance to different cell phones may improve this particular customers' shopping experience and research.

• Increases market exposure

Even bait and switch advertising increases market exposure. If a bait and switch campaign is considered negative and a company quickly follows up with clearer advertising, the net affect may amount to greater advertising leverage than had a standard advertising methodology been consistently used. In other words, the advertising itself can be bait and switch, starting with one type of ad to gain customers' attention and another to build on that attention.

• Higher sales

Bait and switch advertising can boost sales forecasts and can also do so on a consistent basis if 1. The method used is legal and 2. The product and market suit the sales tactic. In other words, some markets and products work better with bait and switch advertising than others. For example, unique brands such as Coach purses may not be as easy to switch with other brands however the purses themselves may be switched provided they remain the Coach brand. The use of market research can be highly useful in determining if and when a bait and switch marketing campaign is the right choice for your business.

Cons of bait and switch:

• Constitutes false advertising

The Code of Federal Regulations defines bait advertising as meeting specific criteria. Bait and switch advertising should generally not meet these criteria in order to avoid potential negative litigation. In light of this, variations of the bait and switch that do actually intend to sell the bait product in addition to switched products are safer and more effective than a traditional bait and switch.

• Reduces brand perception

Loyal, or long-term customers with specific advertising expectations may not value bait and switch advertising at all. They may perceive it as a breach of trust and non-recognition of their value to the company as long time customers. When using the bait and switch with such customers, it may be more affective to adapt the technique to a soft-sell or more personalized approach where the bait and switch isn't quite so defined. Market research is helpful in identifying client demographics, and preferences which can be used in determining whether or not a bait and switch is the right promotional choice.

• Could lower long-term revenue

Depending on a business and its clientele, a bait and switch advertising campaign could turn out to be a complete disaster. This is evident in a Pennsylvania State University Study about the bait and switch search engine advertising. In the study, 'piggyback products' are offered or advertised alongside search results for brand specific queries with the affect of lessening the impact of the original advertisers goals and paid for advertising. This is an instance of third party advertising using bait and switch.  

Sources:

1. http://bit.ly/aUTmKb (Federal Trade Commission)
2. http://bit.ly/19FIs0 (County of Los Angeles)
3. http://bit.ly/b64fVc (Law Brain)
4. http://bit.ly/8YiZLb (Edmunds)
5. http://bit.ly/aOO92Q (Pennsylvania State University)

How to create a sales forecast

There are many ways to create a sales forecast, and how a sales forecast is made is not the same as what a sales forecast is. Some sales forecasts are more accurate than others, but the information used in making the sales forecast also contributes to its validity and largely pertains to existing and pre-existing selling activities. Sales forecasts can be made by hand on paper with a calculator, using Microsoft Excel, or with a specialized sales forecast software. Essentially one or more of the following are needed to make a sales forecast:

1. Past sales numbers
2. Sales and marketing budget numbers
3. Intervals at which the numbers are attributable to
4. Other dependent variables ex. Changes in sales force
5. Calculator, or Forecasting software

Determining which sales forecast to use for your business depends on 1) market consistency, 2) historical sales, 3) changes to marketing, project management or product and service line, 4) economic conditions and 5) forecast objective. This article will illustrate how to make different sales forecasts with different tools and methods, and then discuss the importance, relevance, pros and cons of sales forecasts.


Simple sales forecast using moving average

The moving average is a trend line that calculates an average number based on historical data. For example, if sales for the last two years averaged $120K per month and rose an average of 3% per month, a sales forecast that uses both moving average and the percentage rise in the moving average will give a sales prediction based on past sales patterns.

1. List historical sales on a piece of paper or spread sheet
2. Calculate moving average
3. Determine periodic percentage increase in sales
4. Create trend line by applying percentage increase to moving average

Sales forecasts using Microsoft Excel

A few types of sales forecasts can be made using Microsoft Excel. These different forecasts use data differently or adjust data to arrive at more accurate predictions. All forecasts are predictions unless the variables are 100% constant into the future. The sales forecasts below use moving average, dependent variable i.e. causal relationships, and independent variables i.e. sales values. (Microsoft.com)

1. Create three or more columns in a Microsoft Excel Spreadsheet
2. One column for sales and another for time period
3. Click on the chart wizard
4. Highlight data box, proceed through wizard steps
5. Click on Chart tab and add trend line

For more detailed analysis of the above sales forecasting method using Microsoft Excel, regression analysis can be used to calculate accuracy of the sales forecast, and correlations. The following Microsoft website illustrates how to do this and create a forecast in excel with more detail.

Sales forecast using statistical or specialized software

Software that is designed just for creating sales forecasts can provide easier to you applications that save precious time and energy. Additionally, specialized sales forecasting software may offer a variety of forecasting options such as multiple dependent variables, easier data input templates, more dynamic presentation, and greater analytical capacity. Sales forecasting software can be found for free online via sites such as http://www.freedownloadscenter.com

Advantages and disadvantages of sales forecasts

Sales forecasts are useful tools in business management because they help refine the business process and improve the accuracy of business financial planning. Sales forecasts can also be helpful in training teams, illustrating sales performance and planning future sales efforts. Additionally, sales forecasts may assist a business obtain financing for new projects or demonstrate the need for sales related changes.

• Reduce excess inventory and storage costs

• Allow management to gauge effectiveness of sales force

• Improve strategic planning and product testing 

• Assist sales force assess their efforts and market

• Creates records for budget considerations and analysis

Sales forecasts are only as good as the variables and factors put into the equation, software or calculation. Some forecasts may be mere estimates or ball park figures of what sales might be like given non measured past patterns. Other forecasts may fail to take into account significant changes in sales staff, budgets or product line(s). Thus, knowing the business in detail can help improve the accuracy of a sales forecast.

• May not account for changes in economic conditions

• Requires business conditions to remain constant

• Does not necessarily incorporate future projects

• Numbers affected from

In summary, sales forecasts are made relatively easily but do require a record of past sales and business variables to more accurately create a forecast using a moving average trend line. Sales forecasts can compare multiple variables on a graph, in addition to being displayed on data tables. The forecast accuracy can be measured with statistical analysis and multiple methods of creating sales forecasts exist including by hand, Microsoft Excel or specialized sales forecasting software downloads. Sales forecasts are generally not 100% accurate but do assist a sales team, business management and business ownership plan for and project future business situations and revenue which helps in inventory control, assessing human resources, budget and strategic decisions.

What M-commerce is

M-commerce or mobile commerce is a form of digital commerce that advertises and markets to users of mobile technology rather than traditional e-commerce or electronic commerce methods. As mobile device operating systems and networks evolve, their functionality has enabled multiple applications that can also offer business services. This m-commerce service platform is a digital venue for businesses seeking another way to access consumers.

Mobile phones are available to individuals at times where desktop and laptop computers are not. Not advertising to existing and potential clients via m-commerce represents a loss of market access in a market that is increasing in size.  Global Business Insights, a business intelligence firm, identifies four key areas in which m-commerce holds high potential; banking, gaming, travel and retail. Mashable, an Information Technology news reporting firm has also identified banking as an m-commerce trend in addition to ticketing, and retail shopping.

Markets available through m-commerce vary by nation according to the Wireless Center. For example, in Japan, 77 percent of Internet enabled mobile users make use of email via their mobile hand-held devices whereas in North America, that number is 27 percent.  The numbers for North American mobile device users in terms of mobile banking, mobile retail and mobile games are 6 percent, 3 percent and 7 percent respectively according to the wireless center. These percentages may seem small, but if the number of mobile of Internet enabled mobile phones is in the millions, which it is, the market is sizable and growing.

Market observers of m-commerce have pointed out a few obstacles exist to the successful integration of m-commerce with mobile phone use. Specifically, these obstacles include things like screen size, memory limitations,  limited interface, and infrastructure.  It is evident with the transition to newer generations of mobile phone technology that these obstacles are being addressed one by one. For example, touch screen mobile phones can increase the speed of use over push button phones.

Developments that enable improved m-commerce include open source mobile phone operating systems have led to assimilation of new mobile software applications. Additionally, both mobile hardware and infrastructure has advanced enough to allow mobile global positioning (GPS), video streaming, music downloads, and access to information services. Mobilethinking, an m-commerce marketing consulting firm has quoted Morgan Stanley as estimating by 2014, 74% of North America will have access to 3G or 3rd generation mobile technology. This serves as an indicator of where the market will be spending more time regardless of the generation of mobile technology.

In terms of sales via m-commerce, additional factors apply. For example, what mobile service providers give clients the best access to mobile Internet, and which mobile handset operating systems have the most market exposure and potential.When developing an m-commerce campaign it is a good idea to first identify if one's business services are suited for m-commerce and how cost effectively an m-commerce sales effort is likely to provide a positive rate of return in one to five years.  

To illustrate further, if a business provides retail goods, would an investment in a Symbian OS compatible shopping interface be worth it? For those businesses at the leading edge of mobile trends such as banking, the decision is easier, but for other businesses that have to compete for limited mobile time and space, obtaining revenue via m-commerce points to higher marketing innovation and lower cost advertising integration.

Sources:

1. http://bit.ly/dpumqt (Global Business Insights)
2. http://bit.ly/bPtg47 (Wireless Center)
3. http://bit.ly/da739F (Mashable)
4. http://bit.ly/cjMfPW (Bowels)
5. http://bit.ly/a2f9uU (Mobilethinking)

A guide to product branding

Product branding turns a common product into a unique and exciting buying opportunity. It builds on a number of factors important to consumers such as image, utility, value, quality and service. For a company to properly brand its product it is prudent to be prepared for a merciless market that's whims can change at the drop of a hat. Fortunately, there are proven techniques and marketing know how in the area of product branding.

Product branding techniques

Branding a product can be extensive, but for purposes of brevity a few key principles are vital to the effective implementation and outcome of any product being branded well. Some of those methods are as follows:

• Customer affinity

Customer affinity is the type of relationship a consumer has with a product. For example, person A prefers Apple Ipods because they just feel right, are reliable, and they have the right features in comparison to MP3 players. This entails a confidence of the consumer, not only in the product but with the company.

• Product differentiation

It's an old principle, but time tested when a marketing professor or guru says, "differentiate your product". This is so because stand out products stay in the memory for a reason. The ideal product differentiation is not only distinctive, but also enhanced in some way.

• Brand equity

Brand equity is the sum of all branding. A product with high affinity but low differentiation has a more average branding in total. The key in branding is to optimize all the branding techniques for as few advertising and research dollars as possible.

The branding process

If branding is done well, and the market likes what it perceives in a brand, it can lead to increased sales, greater corporate and product recognition in addition to serving as a platform to initiate new brands. Once a company and its products are branded it is difficult to move away from that image. Consequently, a bad branding or unsuccessful branding can cost a lot in failed advertising and lost revenue. A problem with branding is knowing how the market will respond to a brand as it is not an exact science. This may involve significant market research, and significant marketing tactical and strategic know how.

Techniques and resources available to business owners:

The field of marketing is diverse and has a wide a scope and depth as can be imagined and created. In the case of branding a few approaches and resources can serve a company well in the branding process. Add-on selling, consumer behavioral analysis and brand image can assist a marketer when taken proper advantage of. To utilize product branding methodologies, a marketer may first study the goals his or her company wants to achieve, then build the brand in line with those goals and the branding methods. Professionals in the field, marketing text books, online gurus and articles, and branding intuition are all resources a marketer might consider before, during and after engaging a product branding project.

How niche marketing can benefit your business

Niche marketing is a form of business marketing that focuses promotion of product(s) or service(s) on a specific target market. Since it 'targets' a specific portion of a population demographic niche marketing is an arguably more effective way of generating revenue than mass marketing. This is so as the products or services may be more likely to be purchased by the target market because in a sense the products or services are customized for them.

Niche marketing using Earth friendly branding

Source: 'Ecogirls'; C.C. By-S.A. 3.0

The reason niche marketing is used is because it is a cost effective form of advertising. Rather than spending endless amounts of money to drag a marketing dragnet across a sea of people it is considered beneficial to identify that group or those groups of people who are most likely to use a certain type of product or service. After this group is identified a niche marketing campaign can begin.

Defining niche marketing

To illustrate what niche marketing is think of a specific type of product like writing services. People who like to read a lot are probably more likely to enjoy writing than those who prefer talking a lot. Markets can be divided further through complementary products. For example, if someone is already subscribing to a writing magazine, they then become a more likely candidate for a writing website than someone who doesn't subscribe to the magazine. At least that's how some marketing logic works. This group of people subscribing to the writing magazine then become a potential niche demographic for additional writing services, and marketing of those services is then considered 'targeted'.

Benefits of niche marketing

The benefits of niche marketing including a more researched study of who is likely to purchase a product in addition to potential advertising savings and increased sales per advertising dollar. So long as the research costs don't outweigh the decrease in advertising dollars the decision to establish a niche market is well founded. Acquiring a niche market involves more than just finding magazine subscription lists however.

A niche market is also found through other means such as website visits, personality type, income demographic, religion, socio-economic status and culture. There are many ways to identify who is going to buy what and this is assisted by the use of statistical tools such as cluster plots, and mean regression analysis. When various groups of people demonstrably fall in to certain groups, this is illustrated through statistical charting and graphing. This research is then used in obtaining marketing financing from finance executives. Additionally, when the results of primary research such as surveys and focus groups leads to probable success of a nice marketing campaign such financing is further justified.

• Potentially increased sales per dollar of advertising
• Higher corporate profit
• Better researched consumer profile
• Product or service viability and usefulness defined in terms of consumer
• Increase marketing efficiency

Summary

Niche marketing is thus a form of marketing that matches a certain brand with a person or group of people. While this is ideally intended to lower advertising costs and increases profit from revenue and the sales per advertising dollar ratio. This beneficial affect of niche marketing may not always happen as the 'market' is composed of human variables and is thus an inherently adverse enterprise. Nevertheless, in addition to enhanced demographic identification which stabilizes market forecasting are ideas like brand equity that are used in collaboration with the targeted marketing. This brand equity can also improve the perceived value of the product or service to a client and theoretically increases the likely-hood of product or service patronage.

Source: http://www.businessdictionary.com/definition/niche-marketing.html

Principles of marketing

There are many types and styles of marketing so the first thing one might consider in reviewing principles of marketing are the 4 P's of Marketing. Price, Place, Product, and Promotion. These are marketing pre-conditions that determine how marketing is done as a boat generally is not marketed the same way(s) as a candy bar. From this point several other important principles can follow. These principles can be divided into two categories internal and external product/service benefits and consumer awareness.

 The Four Ps of Marketing

 

Source: 'Grochim'; GFDL, CC By S.A. 3.0

  
Internal and external product/service benefits

By internal and external, we are talking about benefits to the business or person providing the product or service and the recipient of said product/service. Two important marketing principles that pertain to these locus' of benefit include 1) Customer lifetime value and 2) Brand Equity.

• Customer life-time value is the past, present and future value of existing and potential clients via extension of the idea that a present customer's value also includes future cash flow from that customer. The reason Customer lifetime value is important is because it represents a qualitative and quantitative estimate as to how much an individual client is worth in relation to a business. What's more, it reinforces the notion customers are for life and not just a one time purchase.

• Brand equity is also important as this is often what a consumer uses to value a product and/or service in their mind. A company's brand equity consists of the potential use, benefit and satisfaction gained by a client after purchasing a product and/or service. For example, how is a product different and better from a similar product (product differentiation), how good is the quality in relation to the price, how convenient is the product or service. The better a perceived brand equity is, the more likely a client is going to want what you have to offer.

Neither Customer lifetime value or brand equity are worth much if the product or service isn't actually marketed. This is why research and advertising budgets are so important to a company's success. A few of the key principles of getting your business noticed are target marketing, primary Research, secondary research and persuasion. These are also part of the marketing process model.

Source: 'Grochim'; CC By S.A.-3.0

Secondary research and persuasion

• Targeted marketing is the localization of marketing efforts to specific groups of people who are believed to be more likely to purchase and/or respond favorably to a company's marketing efforts.

• Primary Research is what assists a company in targeting a market accurately. While not all marketing is based on this type of research it is important as it provides first hand evidence of patterns in consumer behavior and preferences. Primary research is direct research with a population sample via surveys, interviews, and/or product testing. The data gathered from this type of research is later analyzed both qualitatively and quantitatively and then decision are made pertaining to an advertising campaign, product release or continuation.

• Secondary Research is anything derived from 2nd party's such as prior research studies, sales and demographic information, magazine subscription lists and previous consumer behavior polls or studies. This type of research is also relevant and can be combined with primary research for potentially more effective conclusions.

• Persuasion can be described as the effectiveness of an advertising message, campaign, or promotion in selling a business and its services. There are many techniques used in delivering advertising messages and these techniques are used through various mediums of communication such as radio, television, billboards etc and also through corporate policies and enacting of those policies via customer service, product differentiation, and brand equity. Ideally, the more consistently a business conveys their well planned messages to existing and potential clients the greater the chance of persuading them a specific product or service is really intended for them and not someone else.

There are many ways to perceive marketing and consequently many more marketing principles to support those methods. Marketing is a competitive and ever evolving practice as the market is very discerning and quickly learns a marketing technique. What's more holding the interest of a market in a very sensational marketing environment takes innovation, consistency, effectiveness and presentation. Marketing is an art that's sum of parts is not complete without hands on practice and experience. While the principles of marketing have value, it is the productive application of those principles that yield results.

Source(s):

1. http://www.netmba.com/marketing/mix/
2. http://tinyurl.com/4dtg5lk (Search CRM)
3. http://en.wikipedia.org/wiki/Brand_equity
4. http://www.allbusiness.com/marketing/market-research/1310-1.html