Strategic Marketing Management:

Marketing strategy is the total and unbeatable instrument or a plan shaped and designed specifically for attaining
the marketing objectives of a firm. A marketing mission and objectives tell us as to where we want to go and
marketing strategy provides us with the grand design for reaching out there.
Strategic marketing management is the planned process of defining the organization’s business, mission, and
goals; identifying and framing organizational opportunities; formulating product-market strategies, budgeting
marketing, financial, and production resources; developing reformulation.
“Marketing Strategy is a process that can allow an organization to concentrate its resources on the optimal
opportunities with the goals of increasing sales and achieving a sustainable competitive advantage.” - David
Aaker,
Nature of Marketing Strategies
The nature is clearly spoken by the following points:
1. They are dynamic:
The concept of marketing strategy is relative as it is designed to meet the changing demands of a situation. Each
situation and event needs a different strategy that is why strategies are revised and recast very frequently to cope
up with the changes in a given situation or event.
2. They are futuristic:
A marketing strategy is forward looking. It orients towards future. A marketing strategy is designed to bring out
the organisation from a ditch of degression to the path of progress for better change in the coming times.
3. They are complex:
A marketing strategy is a very complex plan impounding in its compound other plans or firms of plans which
area must to achieve the organizational goals. It is a compendium or complex of plans within plan to out beat
the strength and vitality of others in the line are allied activities.
4. They provide direction:
Marketing strategies provide a set direction in which human and physical resources will be allocated and
deployed for achieving organisational goals in the face of change environmental pressure, stress and strains and
constraints and restraints.
5. They are all covering:
Marketing strategies involve the right combination of factors governing the best results. In fact strategic
planning warrants not only the isolation of various elements of a given situation but a judicious and critical
evaluation of their relative importance.
6. They are a link between the unit and environment:
The strategic decisions that are basically related with likely trends in the changing marketing changes in govt.,
policies, technological developments, ecological change over’s, social and cultural overtones. Then, the ever-
changing environment which is external to the organisation has impact on it because unit is the sub-systems of
supra-system namely environment.
7. They are interpretative:
Marketing strategies are the interpretative plans formulated to interpret and give meaning to other plans in the
spot-light of a specific situation or situations. They demand an adjustment of plans in anticipator of the
reactions of those who will be influenced. Strategic decisions are the result of a complex and intricate process of
decision making.
8. They are top management blue-print:
Marketing strategies their formulation is the basic responsibility of top management. It is because, it is top
management that spells out the missions, objectives and goals and the policies and strategies are the ways to
reach them. Thus, top management is not only to say to where to go but how best to go the terminal point.

marketing philosophy
Marketing is about the process of creating, communicating, and delivering products to customers to satisfy their
needs profitably. The marketing philosophy underlines how the company achieves this.
It is about the way of doing business. It’s not just the domain of the marketing department. Its application
affects processes and activities throughout the organization, requiring synergies between the marketing
department and other departments such as operations, finance, and human resources.
Types of marketing philosophies
Marketing philosophies or concepts evolve over time in line with changes in the relative weights between the
organization’s interests, customers, and society. Here are five of its evolutions:
1. Production concept
2. Product concept
3. Selling concept
4. Marketing concept
5. Societal marketing concept
Each of these philosophies was dominant in its time. However, that does not mean a philosophy dies with the
end of the era of domination. They are still in use today.
Production concept
This concept is the oldest, with an emphasis on inexpensive and widely available products. It assumes
consumers are interested in product availability and low prices. That overrides the elements of product features
and quality.
Some companies may still adopt this philosophy, especially in developing countries. They see that consumers
are more interested in more accessible and cheaper products than its features. They concentrate on achieving
low costs and production efficiency to lower the selling price. To sell products, they rely on mass distribution.
However, this concept ignores that not all consumers in the market are price-conscious. Some of them are
quality conscious. They compromise price with product features.
Product concept
This concept is oriented towards quality, performance, or features, assuming consumers will prefer the most
innovative products. Companies focused on this concept strive to make excellent products and improve them
over time.
And, consumers come naturally. I mean, they’ll buy if they admire the product, with little marketing or sales
effort.
Companies develop products and produce more sophisticated features over time. With it, consumers get a
superior product, convincing them to continue buying the company’s products.
However, companies sometimes fall into the trap. They have good knowledge and skills in making products.
They focus too much on their product, and pay less attention to what the market needs.
As a result, products are indeed innovative but devoid of enthusiasts. That can lead to poor sales.
Selling concept
The selling concept sees the company as having to make aggressive sales and promotion efforts. Companies
aim to sell what they make rather than make what the market wants.
Without stimulation from the company, consumers will not be interested enough to buy the company’s
products. They will not buy if the product is not advertised to them.
It also assumes the company has all the effective sales and promotion tools to stimulate more purchases.
Companies assume they can sell any product if they have a trained and motivated sales force.
Companies usually apply this concept when they have excess capacity. Rather than piling up in a warehouse –
thus increasing costs -, they promote products aggressively.
Selling products through aggressive promotional techniques is not always successful. It’s easier to sell a product
a customer wants than it is to sell a product a customer doesn’t want. This paradigm change then shifted the
sales concept era to the marketing concept era.
Marketing concept
This concept puts forward the creation, conveying, and communicating customer value through the products
offered. It rests on finding the right target market, identifying customer needs, building integrated marketing,
and achieving profitability. It laid the foundation for many companies today to pursue a competitive advantage.
Different from the selling concept, this concept focuses on the needs of consumers in the target market.
Through its products, the company offers solutions to satisfy them. Meanwhile, the selling concept focuses on
the company’s needs intending to convert its products into cash.
Societal marketing concept
This concept is a compromise between customer welfare, present, and future. It comprises three goals: profit,
planet, and people.
The company determines the needs, wants, and interests of the target market. They provide the desired
satisfaction more effectively and efficiently than competitors. However, they do so with an orientation not only
towards short-term but also long-term well-being.
Traditional marketing is deemed unsuitable amid environmental degradation, resource shortages, health
problems, and neglected social services. It focuses on the short-term need to generate profits and ignores the
long-term interests of consumers.

Approaches to the Study of Marketing

Approaches to the Study of Marketing – Top 7 Approaches
Approach # 1. Product or Commodity:

This approach undertakes the study of marketing on the basis of a commodity. For example, when studying the
marketing of cotton, one will begin with examining the sources of supply, nature and volume of demand, the
purpose for which it is required, how it is transported, the problem of storage, standardization, packing,
branding, etc.

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This approach is termed as – “descriptive approach”. In this method, the commodity serves as a focus around
which the organizational and managerial aspects of marketing are studied.

This approach is criticized for being repetitive and time consuming since the emphasis is on products. The
classification of products tends to create another problem.
Approach # 2. Institutional:

Under this approach, analysis of different institutions engaged in marketing is undertaken. The activities
performed by each institution form a part of the entire marketing process. Under this approach marketing
process is split up into three institutional functions namely, concentration, equalization and dispersion.

This approach has failed to bring, out effectively the interrelations of all the institutions.
Approach # 3. Functional:

Functional approach splits down the field of marketing into a few functions. The purpose is to enable one to
separate the essential from the non-essential elements.

According to this approach (designed by A.W. Shaw), middlemen perform the following functions—sharing the
risk, transporting the goods and financing the operations.
Approach # 4. Managerial:

This approach combines certain features of the other three approaches. This approach lays emphasis on the
application aspects of marketing problems. The changes in marketing are mainly due to two factors—
controllable and non-controllable. The controllable factors mean those marketing forces which are well under
the control of the firm, for example, personal selling, advertising, etc. The non-controllable factors include
economic, sociological and political forces.
Approach # 5. Societal:
In the societal approach to the study of marketing, the entire marketing process is regarded not as a means by
which business meets the needs of consumers but as a means by which society meets its own consumption
needs. This approach mainly focuses on the environmental factors like sociological, cultural, political, legal,
etc., and marketing decisions and their impact on the society. It gives importance to the society and not to the
customer.
Approach # 6. Systems:

Marketing has different sub-systems such as product planning, pricing, promotion, distribution, etc. This
approach would help the management to plan the activities of each small group in detail and implement them
effectively.

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Marketing process is not a bundle of isolated functions as was thought in the past. Each function has a profound
influence on the other. Moreover, all marketing activities are performed in an ever-changing atmosphere. The
above two reasons necessitate the introduction of the systems approach.

Companies are also realizing that losing a customer means more than losing a single sale that is, losing the
entire stream of purchases that the customer would make over a lifetime of patronage. Thus, working to retain
customers makes good economic sense.
Approach # 7. Scientific:

In recent years considerable progress has been made the study of marketing because of the scientific approach.
This approach is otherwise known as interdisciplinary approach. It refers to the uses of all disciplines—social,
physical, quantitative and business—to develop marketing insights, concepts and theories, investigate and solve
marketing problems. It includes the application and integration of pertinent material to advance marketing.

With the application of behavioural sciences, many new concepts on perception, attitude, opinion, leadership,
and communication and consumer behaviour have been developed which are of vital importance to the
marketers. The field of statistics, mathematics and electronics has developed many new, analytical tools which
are applied to identify and solve marketing problems.
Approaches to the Study of Marketing

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Approach may be defined as the prospective by which the particular field or study is examined or the way in
which a particular subject is studied. There are several approaches in the field of marketing.

They are as under:

1. Product or Commodity Approach:

This approach uses marketing on behest of product or commodity which is marketed. It examines food,
distribution after sales services, problems of producers, consumer satisfaction, reach of the product, segment
covered by the product and every single detail which is concerned with the marketing of their product.

Merits:

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i. It gives a micro view of the product marketed and helps in understanding the marketing of a specific
commodity.
ii. It helps in addressing the problems concerned with a particular product and dissolving the same.

Demerits:

i. It is not suitable for products which are combination of other products or assembly line product

ii. It is applicable only for agricultural products and does not address macro issues concerned with the product.
2. The Institution Approach:

The institutional approach use marketing in relation to the various institutions which come into contract directly
and indirectly in the marketing of a product. They mainly include transportation, commission storage and
warehouses co. Marketing intermediaries such as wholesalers and retailers advertising agencies, marketing
research firms etc.

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Merits:

i. It gives a macro view of marketing

ii. It gives an idea on how institutions function and how they can better their operations.

Demerits:

i. The institutional approach does not take into consideration the consumers who are the most important part of
any marketing system.

ii. It gives only a supply side view of the marketing system.

3. The Functional Approach:

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This approach studies the various functions involved in marketing and examines three basic functions marketing
namely:

a. Functions of exchange

b. Functions of physical distribution

c. Facilitating or auxiliary function.

Merits:

i. It gives an operational view of marketing

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ii. Functions can be altered to suit the requirement of marketing

iii. Functions can be made most cost effective.

Demerits:
It ignores the behavioural aspects and emotional aspects which go into a marketing of the product.
4. Decision Making or Managerial Approach:

The decision making approach concentrates on the decision taken by a Marketing Manager while marketing a
particular product. It emphasizes the fact that the most important function of a Marketing Manager is to choose
the best alternative course of action.
5. Technology Approach:

This approach use marketing through the technical aspect and aims at using the technology forward the
marketing process. Internet marketing, mobile marketing etc. are products of this approach.
6. Legal Approach:

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This approach studies the legal aspects of marketing and the rules which govern the marketing distinction of
goods and services. It includes the study of various laws such as COPRA (Consumer Protection Act 1986 is an
act of Parliament of India enacted in 1986 to protect interests of consumers in India.), Essential commodities
Act, Sale of goods Act, etc.
7. Economic Approach:

This approach understands the economic aspects of marketing by studying various laws of economics such as
the law of diminishing marginal utility, law of demand and law of variable proportion etc.
Approaches to the Study of Marketing – 9 Important Approaches that Help in Determining the Nature of
Marketing

The nature of marketing can be made determined under the following several approaches:
1. Distribution of Goods and Services Approach:

It is an old and narrow approach and therefore, called commodity approach too. All activities executed while
moving the commodities and services from producer to the consumers are included under this approach. For
example, transportation, grading, storage and sale etc., activities. The definition given by American Marketing
Association represents this approach properly. This definition of marketing was considered as an ideal approach
for many years. However, owing to some deficiencies, this definition as also this approach has now become
obsolete and unfit.

The deficiencies crept in this approach are following:

(i) The function of marketing as per this approach starts after the production of commodity and it ends with the
commodity when it is made available to the customer. This approach does not include the product planning,
Market Research etc., activities executed prior to production and the after sale services with the process of
marketing.

(ii) This approach is based on assumption that the commodities being produced by the producers properly cater
the demand of the consumer/customer.

(iii) The system claims that it is simple and gives good result over the marketing of each product; description
study is possible. But at the same time this approach is time-consuming and repetitive process which is a
drawback.
2. Standard of Living Approach:
This approach is customer oriented. Its scope is widely extended. It converts the entire business in marketing.
The activities prior to production and that after sale are included in the scope of marketing. This approach
assumes the living standard of people annexed with the development of marketing. In fact, standard of living
becomes as high as the marketing is developed. Customers welfare is only possible, when quality goods are
manufactured and these are made available to them.

The economics of developed and progressive marketing policies followed there and standard of living
promoted. It is notable that owing to slow or no development of marketing has brought down the standard of
living in India to a large extent. It is seen that the standard of living in villages, towns and smaller cities in India
is lower than that of metro-cities. The main thing is that quality goods are not available in the small cities.

The definition as given by Pul Mazur and Macolm Mc Nair has propounded this approach for the development
of marketing.
3. Utility Creation Approach:

As per this approach, the marketing brings in the market economy through the creation of utility and this market
economy conducts and controls the society.

Utility creation takes place four ways:

(i) Form utility

(ii) Place utility

(iii) Time utility and

(iv) Transfer of ownership utility.

The several marketing activities create the four kinds utility which are described as under:

(i) By Changing of Form:

Converting raw material into finished product. The change as brought in the shape and size of anything or
matter by cutting and pruning is called the changing of form. Everything becomes more valuable and useful
than in its original form when such cutting and pruning is made. For example, the chair and table made by
craftsmanship on wood are useful and valuable than the wood itself.

(ii) Change of Place:

The change of place of thing increases the utility because it has relatively lesser use and value where it is found
abundantly. Transportation, Insurance, Storage and Packaging increases the utility of the thing. For example,
the sand at the river bank is not so useful as it becomes when transported to the market.

(iii) Change of Time:

A few things are of such nature that their utility increase with the passage of time. Making products available
when needed. For example, the old rice is more useful than that of fresh one.

(iv) Change of Possession:

Establishing contact between the marketer and the customer. Change in possession increases the utility and
value of the thing. It is called utility based on authority or authoritative utility. For example, sewing machine at
home-is not as useful as with the tailoring shop. Similarly, the comb has no use with a bald but it will be more
useful at the barber’s shop.

The manuscript with an author is no as useful as with the publisher because the publisher will publish the same
and bring it in the market. It is the opinion of the supporter of this approach that the marketing gives birth to the
market economy through the creation of utility and the market economy conducts and regulates the society.
4. Revenue Generating Approach:

This approach is company or firm oriented. All activities executed with the objective of receipt of income under
this approach are included in the marketing. The business cannot be extended in the lack of the receipt of
income. The existence of business too may meet to crisis if no income is being generated. Income should be
generated through appropriate costs. If the expenditure is incurred in the ratio more than that of earning, it
cannot be said well anyway.

Following are the salient features of this approach:

(i) The institution should do production and distribution on the profit basis.

(ii) The sale of goods in a firm should be at least to the extent that there may be some savings after meeting all
expenses incurred thereon as only then, the investors will sustain in a firm.

(iii) The executives of a firm should not incur expenses more than an appropriate ratio of earning for the
promotion of the business because receipt of income as a result of more expenses seldom give profit.
5. Institutional Approach:

Modern era is an era of production in a large scale and the scope of distribution has been extended too much.
This approach explains the requirement of several mediatory institutions for distribution of a large scale
production. The activities executed by these institutions together are called marketing.

This approach does study of those producers, mediators and other marketing institutions that establish
equilibrium between the supply and demand and join the production centre with the consumer centres. The
institutional approach does away with the distance made by the large scale production between the producer and
consumer in this modern era.

This method does not give adequate knowledge of the entire marketing functions and also fails to explain the
interrelations of different institutions.
6. Functional Approach:

This approach of marketing does study all those activities which are related to move the commodities from the
centres of production to the consumption centres. It controls the duplication of the functions, analyses the
problems being faced while executing the works and does the best use of the time. However, it cannot explain
clearly the methods of application of marketing function in a business system.
7. Art and Science Approach:

According to M.J. Baker — “Marketing is not a science while it should be science. Marketing has obtained
facts, principles, techniques, statistics and thoughts from mathematics and society as also from applied sciences
for another field of business i.e., economics, law etc.

However, this material still could not be represented in synthesized or conglomerate form and no universal
principle has been made. However, it appears a negative approach if we discuss in reference to the nature of
marketing. It solves the problem of the distribution of the limited means and it assists in availing optimum
satisfaction.”
The approach of art and science makes it clear that the marketing on one side is an art making available the
production of high quality, appropriate price, at proper hands and with an appropriate manner and
simultaneously; it is a progressive and dynamic science on the other.

As it emphasizes making supply according to the demand, it is customer oriented too. In spite of presence of
these all, marketing cannot be put in the category of physical science. We can put it in the category of Medical
and Engineering science.
8. Marketing System Approach:

Several business activities influencing each other are included in this approach. This approach gives an
opportunity to understand the occasion of marketing in a firm or company, laws, economy, competitive behaves
and the purchase activities. The system approach can be defined as – “a set of objects together with the
relationships among them and their attributes.” Systems focus on interrelations and interconnections among the
functions of marketing.

According to Philip Kotler – Following elements are included with the marketing systems – (i) company, (ii)
market of a company, (iii) mediator, rivals and suppliers, (iv) public, which includes financial institutions,
common public, independent press, government institutions and jurists and – (v) culture and demography. He
further envisages that “A marketing system is the set of significant institutions and flows that connect an
organisation to its markets.”

The marketing systems can be divided primarily in the large, medium and small size. The large size systems
make clear the relations between producers, retailers and wholesalers. The medium size marketing systems
depict the consistency between marketing and other functional activities within the firm. The small size systems
explain the interrelation between the marketing activities.

The social approach of marketing is most necessary for the influencing determination. Apart from it, this
approach has been understood most essential for the use of models and computer technique. It further provides
an opportunity to understand the marketing opportunities, competitive deals, buying activities, economy and
law too.
9. Social Marketing Approach:

This approach is related to the social organisations. As per Robert Ferber — “Marketing technique should be
used the most in the field of social and public sectors.”

This approach has been originated recently. The marketing process is regarded as a means by which society
meets its own consumption needs. This system gives no importance as to how the business meets the
consumer’s needs. Therefore, attention is paid to ecological factors and marketing decisions and their impact on
the society’s well-being.
Approaches to the Study of Marketing – Traditional and Modern Approach to Marketing

The various approaches to marketing can be summarized as under:

Approach # 1. Traditional:

The traditional approach to marketing was focused on make and sell concept.

Following approaching comes under this category:

i. Production concept

ii. Product concept

iii. Selling concept.
Approach # 2. Modern:

The modern approaches to marketing are customer-centered and are focused on sense and serve concept. That
means the main aim is to identify and meet the needs of the customer’s profitably.

Following approaches comes under this category:

i. Marketing concept

ii. Customer concept

iii. Societal marketing concept.

Approaches to the Study of Marketing – Early, Contemporary and Systems Approach to Marketing
1. Earlier Approaches:

The marketing orientation evolved from earlier orientations, namely, the production orientation, the product
orientation and the selling orientation.
2. Contemporary Approaches:

Recent approaches in marketing include relationship marketing with focus on the customer, business marketing
or industrial marketing with focus on an organization or institution and social marketing with focus on benefits
to society. New 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. 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 audience from traditional marketing
methods like radio and billboard to internet properties or landing page.

Constructive criticism helps marketers to adapt offerings to meet changing customer needs. A firm in the
market economy survives by producing goods 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 (Solution, Information, Value, and
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.

Product → Solution

Promotion → Information

Price → Value

Place (Distribution) → Access

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:

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 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:

1. Taking customer focus with a grain of salt, treating it as only a subset of one’s corporate strategy rather than
the sole driving factor. This means looking beyond current-state customer focus to predict what customers will
be demanding some years in the future, even if they themselves discount the prediction.

2. Pursuing new markets (thus new value networks) when they are still in a commercially inferior or
unattractive state, simply because their potential to grow and intersect with established markets and value
networks looks like a likely bet. This may involve buying stakes in the stock of smaller firms, acquiring them
outright, or incubating small, financially distinct units within one’s organization to compete against them.

Other caveats of customer focus are:

1. The extent to which what customers say they want does not match their purchasing decisions. Thus surveys
of customers might claim that 70% of a restaurant’s customers want healthier choices on the menu, but only
10% of them actually buy the new items once they are offered. This might be acceptable except for the extent to
which those items are money-losing propositions for the business, bleeding red ink.

A lesson from this type of situation is to be smarter about the true test validity of instruments like surveys. A
corollary argument is that “truly understanding customers sometimes means understanding them better than
they understand themselves.” Thus one could argue that the principle of customer focus, or being close to the
customers, is not violated here-just expanded upon.
2. The extent to which customers are currently ignorant of what one might argue they should want-which is
dicey because whether it can be acted upon affordably depends on whether or how soon the customers will
learn, or be convinced, otherwise. IT hardware and software capabilities and automobile features are examples.

Customers who in 1997 said that they would not place any value on internet browsing capability on a mobile
phone, or 6% better fuel efficiency in their vehicle, might say something different today, because the value
proposition of those opportunities has changed.
3. Systems Approach to Marketing:

A system is a set of interacting or interdependent components or group coordinated to form a unified whole and
organized to accomplish a set of objects.

The system approach provides the best model for marketing activity. It place emphasis on inputs to the system
and the outputs produced. It helps in the determination of marketing programmes and the total marketing mix.

Adoption of a systems approach provides a good base for the logical and orderly analysis of marketing
activities. It stresses marketing linkages inside and outside the firm. It emphasize on environment. It provides a
frame work for control. It depends on using the right information. Market can be understood only through study
of information.

Marketing is by definition a system. If we accept Webster’s definition of system as on an assemblies of objects

united by same form of regular introduction or interdependent. Certainly, the interaction of such objects as
products, price, promotion, sale calls, and distribution and so on (Marketing Mix) fits the definition.

The output establishes the purpose or objective of a system. The objective is a profit through serving the
demand of customer and community. The output of marketing system is sale of goods. Correct inputs must be
available to the processor, i.e., marketing administration in order to produce desirable outputs. These inputs in
the marketing system are the element of marketing mix and the target market determined through marketing
research.

The marketing system must operates as per plans and polices and within control which may be internal or
external of course, feedback must be available for introducing correction in our future plans and marketing
operations. The flow of information requested to check performance is called feedback. Feedback ensure the
accomplishment of objective through continuous marketing managerial process of planning and control.

Organizational Orientation:

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 department
would be consulted, with respect to securing appropriate funding for the development, production and
promotion of the product.

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.

Herd Behaviour:

Herd behaviour in marketing is used to explain the dependencies of customers’ mutual behaviour. The
Economist reported a recent conference in Rome on the subject of the simulation of adaptive human behaviour.
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 people 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(dot)com who are increasingly informing customers about which products are popular
with like-minded customers.

The following aims are sought to be achieved by studying marketing:

i. To develop an intelligent appreciation of modern marketing practices.
ii. To provide guiding policies regarding marketing procedures and their implementation,
iii. To study marketing problems according to circumstances and to suggest solutions.
iv. To analyse the shortcoming in the existing pattern of marketing.
v. To enable successful distribution of agricultural products, our mineral wealth, and manufactured goods.
vi. To enable managers to assess and decide a particular course of action.

Customer Relationship Marketing

What is Customer Relationship Marketing?
Customer relationship marketing is a technique that is centred around client relationships and customer loyalty.
Utilising customer data and feedback, businesses develop strong bonds with their customers to gain their trust.
Rather than focusing on quick-win sales, customer relationship marketing is a long game. It focuses on the
development of an emotional relationship between customer and business. If a customer is invested into a
business emotionally and feels that themselves or their business can’t function without it, they’re more likely to
purchase.
And not just a one-off either. They’re more likely to keep going back for more. Think about it, when you find a
service that you can trust, do you bother looking elsewhere for the same product next time? The chances are that
you don’t and you head back to the same business because you know you’re getting value for money and top
service.
That’s what customer relationship marketing is all about – building those long-lasting relationships that turn
customers into lifelong brand advocates. If you’re looking for short term goals, then it’s not going to produce
mouthwatering figures. But if you’re looking for impressive long-term returns then it could be the perfect
solution for you.
Businesses can use this marketing method to their advantage and market their efforts by storytelling. What we
mean by this is businesses provide a compelling narrative that the customers than then put themselves into. This
helps play on that all-important emotional connection that the business is trying to achieve with the customer.
Storytelling is an integral part of customer relationship marketing strategies. By putting the customer into
scenarios, they can then see how your business is going to help – which helps the buying decision. There’s only
so far that words can get you, scenarios will help speed up your sales cycle.
The Different Customer Relationship Marketing Strategies
Provide a Personalised, Customer-Centric Approach
When operating a customer relationship marketing strategy, your business and your product should never be the
primary focus. The onus should be on the customer and how you can help them and their business move past an
issue.
It’s good practice to always be thinking, “would the customer want to see this advert” and “would this post
generate excitement within my customers?” when you’re thinking of releasing content. If you can answer
anything other than 100 percent yes to both of these questions, you need to have another look at your content.
You must create support channels for your customers. This model of marketing is all about providing that full
experience, so it’s important to make sure that they always have help on hand when they need it. Whether it be
on social media channels or a chatbot, meeting your customers where they want to be contacted is a good way
of showing willingness.
Post Where Your Audience Is, Not Just Everywhere
Traditional marketing efforts would see businesses paying for TV advertisement slots and billboards in hope
that they’ll cover a wide range of people and attract a larger haul of customers. However, customer relationship
marketing is a lot more efficient than that.
Traditional methods can prove to be wasteful, as a lot of the people that your efforts land in front of aren’t a
relevant fit. Do your research as to which platforms are the most popular with your targeted demographic. By
reaching out to them through these channels, you’re showing helpfulness and understanding that’ll encourage a
level of interaction.
Incentives and Rewards for Brand Loyalty
Once they’ve made a purchase, that isn’t the end for the customer journey. To ensure that they become a brand
advocate and loyal customer you need to carry on the connection long after the initial sale. Whether it’s
discount offers or personalised product recommendations, you should consider what you can offer them once
they’ve made the original purchase.
Always Look to Collect Feedback
Business relationships are a two-way street. To develop the best connection with your customers, you need to
know how they truly feel, don’t you? However, good your marketing team is, you’re not mind readers – so just
ask. Feedback is crucial to constantly improve your service to fit the specific needs of the customer.
The Advantages and Disadvantages of Customer Relationship Marketing
Advantages
One of the biggest advantages of customer relationship marketing is that it saves crucial time and money for
your business – compared to traditional methods. This is because businesses then focus on the prospects that
actually show promise of maintaining a relationship, rather than wasting their money trying to pursue the wrong
type of customer.
It also increases customer satisfaction levels and communication levels too. When customers have a strong
relationship with a business, they interact with them more frequently. This makes it far easier for businesses to
learn about their customers and therefore tailor their content towards them more easily.
Businesses then save money by building strong relationships with people who are already customers, rather than
trying everything to try and acquire new ones. Other advantages also include:
• Delivering a consistent customer service. If there’s one thing that customers love, it’s businesses being
consistently good. Meeting customer needs, improving customer satisfaction and delivering an all-round
exceptional experience are all a result of consistency.
• Improving profitability. Customers who are loyal to a business spend more with them. Fact. As opposed to
chasing the one-time sale that might leave straight away after.
• Spread brand awareness. The happier that your customers are, the more chance that they’ll relay the message
about you.
Disadvantages
Like anything, there are two sides to the coin. Whilst customer relationship marketing has some great
advantages for your business, it can also throw up some cons too. These include:
• New customers take a back seat. You can’t rely on retaining customers for everything, sometimes you need new
customers to meet budget goals. However, due to the onus placed on retention, they sometimes get
overlooked.
• Returning customers expect benefits straight away. Some customers feel like their dedicated support deserves a
discounted product or service. This means that you can either honour the discount and make less profit or
decline it and risk losing the custom.
• It may require a business culture change. Nobody likes change, do they? Especially drastic change. You need to
work hard at getting all of your staff on board to back the decision, otherwise, the culture change won’t work
effectively.
Customer Relationship Marketing in Action
Having read what customer relationship marketing is and seeing the benefits of it, you’re probably wondering
what kind of companies use it. Well, if we were to list every type we’d be here all day – but customer
relationship marketing can help businesses throughout every industry.
There are four main stages of typical customer relationship marketing. Obviously, strategies differ from
business to business but there are main pillars that should be ever present throughout all B2B campaigns. These
are:
• Attracting customers. This is where the first impression of your business will be formed – and they’re hard to
turn round if they’re poor. Whether it’s a blog that ranks organically or a paid social advert, these are both
examples of efforts that’ll help attract customers.
• Converting customers. The easiest way to aid your chances of conversion as a B2B business is to have an
amazing website. If your website is untidy and hard to use, the likelihood is that it won’t convert.
• Retaining customers. Not all business comes from new customers. Go above and beyond for your current
customers and hopefully they’ll repay you with their loyalty.
• Delighting customers. You’re not just providing a service or a product for you’re providing an experience. Aim to
delight your customers before, during and after the sale for maximum results.
Account-Based Marketing Can Improve Customer Relationships
Account-based marketing is a great way of bringing your sales and marketing teams closer together – which can
produce impressive results from your customers. When the two are working together, they can both share vital
information for each department to play on when reaching out to prospects.
For example, sales teams can share information on what type of content makes customers buy the most. And
also, what type of things keep customers coming back for more too. That way, the marketing department know
how to shape their efforts to try and maximise the potential of the campaign.
But in order for your account-based marketing to help you reap the rewards, you need to have somebody in
place who know what they’re doing. It’s no good having someone who isn’t well versed because you’re not
going to get the results that you’re hoping for.
You need to make sure that you hire the right account-based marketer for your business. So, to help you we’ve
created a free pack that contains everything you need to know to put the right person at the helm. Grab your
copy today.
There are several elements to consider when you are developing your marketing strategy.
Segmentation
Your existing and potential customers fall into particular groups or segments, characterised by their 'needs'.
Identifying these groups and their needs through market research and market reports, and then addressing those
needs more successfully than your competitors, should be one of the key elements of your marketing strategy.
Targeting and positioning
You should aim to sell to the market segments that will be most profitable for your business. It is important that
your product offering meets the needs of your chosen target market. See target your most profitable customers
and define your target market.
You should create a marketing strategy that makes the most of your strengths and matches them to the needs of
the customers you want to target. For example, if a particular group of customers is looking for quality first and
foremost, then any marketing activity aimed at them should draw attention to the high quality of your products
or service.
Promotional tactics
Once you have created your marketing strategy, you must then decide which marketing activity or activities will
ensure your target market know about the products or services you offer, and why they meet their needs.
There are many ways to achieve this - such as various forms of advertising, exhibitions, public relations, digital
marketing and an effective 'point of sale' strategy. Try to limit your activities to those methods you think will
work best with your target market, to avoid spreading your budget too thinly.
Monitoring and evaluation
Monitoring and evaluating how effective your strategy has been is a key element, yet often overlooked. This
control element not only helps you see how your strategy is performing in practice, it can also help inform your
future marketing strategy.
A simple approach is to ask each new customer how they heard about your business. Deeper analysis can come
from questionnaires, focus groups and examining customers' online behaviour.
Marketing plan
Once you have decided on your marketing strategy, draw up a marketing plan that sets out how you intend to
execute that strategy and evaluate its success. The plan should be constantly reviewed and, if necessary, updated
so you can respond quickly to changes in customer needs and attitudes in your industry and in the broader
economic climate

Brand Loyalty
Brand loyalty is the positive association consumers attach to a particular product or brand. Customers who exhibit
brand loyalty are devoted to a product or service, which is demonstrated by their repeat purchases despite competitors'
efforts to lure them away.
Brand loyalty is a customer's favorable attitude toward a specific brand. If brand loyalty is strong enough, customers
may consistently purchase a particular brand when they need a product in this product category. The three degrees of
brand loyalty are brand recognition, brand preference, and brand insistence.

Brand loyalty is the loyalty or faithfulness which a customer develops for a brand. Brand loyalty is developed in the mind
of a consumer after find the product or service useful. Brand loyalty is an important aspect of marketing as it helps
companies build a strong brand and get the customers again.
Brand loyalty occurs when a customer chooses to repeatedly purchase a product produced by the same company
instead of a substitute product produced by a competitor. For example, some people will always buy Coke at the
grocery store, while other people will always purchase Pepsi.
Brand loyalty is where a person buys products from the same manufacturer repeatedly rather than from other
suppliers.When consumers become committed to a brand and make repeat purchases over time.

Brand loyalty is a result of consumer behaviour and is affected by a person's preferences. Loyal customers will
consistently purchase products from their preferred brands, regardless of convenience or price.

Companies will often use different marketing strategies to cultivate loyal customers, be it is through loyalty
programs (i.e. rewards programs) or trials and incentives (ex. samples and free gifts).

Companies that successfully cultivate loyal customers also develop brand ambassadors – consumers that will
market a certain brand and talk positively about it among their friends. This is free word-of-mouth marketing
for the company and is often very effective.

TYPES -

According to Philip Kotler there are 4 types of brand loyals -

Hard-core Loyals - who buy the brand all the time.

Split Loyals - loyal to two or three brands.
Shifting Loyals - moving from one brand to another.
Switchers - with no loyalty (possibly 'deal-prone', constantly looking for bargains or 'vanity prone', looking
for something different). Again, research shows that customer commitment is a more nuanced a fine-grained
construct than what was previously thought. Specifically, customer commitment has five dimensions, and some
commitment dimensions (forced commitment may even negatively impact customer loyalty).

BUILDING BRAND LOYALTY

1. Keep quality high.

Depending on the price of the product there is an expectation of a certain level of quality from the
marketplace.
Stay consistent in the quality of goods or services. Else people will go back to what they know they can count
on, don’t let them down.

2. Engage customers.

Keep in touch with your target market on a frequent and consistent basis.
Let the customers know about the new and exciting developments within the company and what to expect
next, build momentum through communication and let them feel involved in the happenings of the company.

3. Focus on your best customers

Building business around the best customer called Brand Lovers—instead of trying to aimlessly drive sales.
 Over time, return on marketing and innovation efforts will rise.
Apple is masterful at creating products especially for customers who love style, creativity, and simplicity.

4. Offering returning customers a discount on services.

Everyone loves a good deal. Therefore, when a customer returns to a company, it is a good idea to reward
them for coming back.
It can be a huge discount; or can just be a percentage off of their bill. However, simply acknowledging and to
appreciate their business and are thankful they are coming back is a great way to encourage loyalty.

5. Giving rewards for references.

Giving current customers rewards for referring other customers is yet another way to show current customers
to appreciate their business. It also helps build up customer database quickly.

6. Offering updates.

A company can post updates on Facebook or Twitter page, about their business.
This will make customers feel like they know the company well.
They will have the inside scoop, a behind-the-scenes look at what company is dealing with on any given day.
As a result, business suddenly become more human to them. This is important because appearing as a human
in their eyes instead of a big, cold, heartless company is key to relationship building. Consequently, it’s crucial
to personal branding as well. Updating your social-media accounts or website is a great way to create brand
loyalty.

MEASURING BRAND LOYALTY

1. PURCHASE BEHAVIOUR PATTERNS

Consumer behaviour captures all the aspect of purchase, utility and disposal of products and services. In
groups and organization are considered within the framework of consumer. Failing to understand consumer
behaviour is the recipe for disaster as some companies have found it the hard way.
For example, Wal-Mart launched operations in Latin-America with store design replicating that of US
markets. However, Latin America consumer differs to US consumer in every aspect. Wal-Mart suffered
consequences and failed to create impact.
Social, cultural, individual and emotional forces play a big part in defining consumer buying behaviour.
Consumer buying behaviour is influenced by individual’s own personality traits. These personality traits do
not remain the same but change with the life cycle.
The choice of occupation and corresponding income level also play part in determining consumer behaviour.
A doctor and software engineer both would have different buying pattern in apparel, food automobile etc.
Consumers from similar background, occupation and income levels may show a different lifestyle pattern.
An individual buying behaviour is influenced by motivation, perception, learning, beliefs and attitude. These
factors affect consumer at a psychological level and determine her overall buying behaviour.
Maslow’s hierarchy, Herzberg Theory and Freud Theory try and explain people different motivational level
in undertaking a buying decision. Perception is what consumer understands about a product through their
senses.

2. SWITCHING COST ANALYSIS

 The negative costs that a consumer incurs as a result of changing suppliers, brands or products.
Although most prevalent switching costs are monetary in nature, there are also psychological, effort- and
time-based switching costs.
Switching costs are incremental expenditures, inconveniences, and risks incurred when a customer changes
from one supplier to another.
Sustainable companies usually try to employ strategies that incur some sort of high cost in order to dissuade
customers from switching to a competitor's product, brand or services.
For example, many cellular phone carriers charge very high cancellation fees for canceling a contract. Cell
phone carriers do this in hopes that the costs involved with switching to another carrier will be high enough to
prevent their customers from doing so.

3. SATISFACTION MEASUREMENT

A satisfied customer is one who will continue to buy from you, seldom shop around, refer other customers
and in general be a superstar advocate for the business.

The customer satisfaction can be measured by : Perceived quality, Loyalty ,Attributional satisfaction and
Intention to repurchase.

EXAMPLE - BRAND LOYALTY

JET PRIVILEGES BY JET AIRWAYS

•Objective: Ensuring stickiness of every customer who boards a Jet Flight.

•Eligibility: Any customer who has flied once on a Jet flight can register in the program.

•Modalities: The program revolves around five tiers, with increasing Privileges. Tier upgrade and retention
done through unique multi-criteria based DTR System, which allows JP to periodically review its best
customers & move them up.
•Results:
In its first year of inception, JP Miles has been awarded the Freddie Global Awards 2005 for its unique DTR
system
Brand positioning refers to “target consumer’s” reason to buy your brand in preference to others. It is
ensures that all brand activity has a common aim; is guided, directed and delivered by the brand’s
benefits/reasons to buy; and it focusses at all points of contact with the consumer.
Brand positioning must make sure that:
• Is it unique/distinctive vs. competitors ?
• Is it significant and encouraging to the niche market ?
• Is it appropriate to all major geographic markets and businesses ?
• Is the proposition validated with unique, appropriate and original products ?
• Is it sustainable - can it be delivered constantly across all points of contact with the consumer ?
• Is it helpful for organization to achieve its financial goals ?
• Is it able to support and boost up the organization ?
In order to create a distinctive place in the market, a niche market has to be carefully chosen and a differential
advantage must be created in their mind. Brand positioning is a medium through which an organization can
portray it’s customers what it wants to achieve for them and what it wants to mean to them. Brand positioning
forms customer’s views and opinions.
Brand Positioning can be defined as an activity of creating a brand offer in such a manner that it occupies a
distinctive place and value in the target customer’s mind. For instance-Kotak Mahindra positions itself in the
customer’s mind as one entity- “Kotak ”- which can provide customized and one-stop solution for all their
financial services needs. It has an unaided top of mind recall. It intends to stay with the proposition of “Think
Investments, Think Kotak”. The positioning you choose for your brand will be influenced by the competitive
stance you want to adopt.
Brand Positioning involves identifying and determining points of similarity and difference to ascertain the right
brand identity and to create a proper brand image. Brand Positioning is the key of marketing strategy.
A strong brand positioning directs marketing strategy by explaining the brand details, the uniqueness of brand
and it’s similarity with the competitive brands, as well as the reasons for buying and using that specific brand.
Positioning is the base for developing and increasing the required knowledge and perceptions of the customers.
It is the single feature that sets your service apart from your competitors. For instance- Kingfisher stands for
youth and excitement. It represents brand in full flight.
There are various positioning errors, such as-
1. Under positioning- This is a scenario in which the customer’s have a blurred and unclear idea of the
brand.
2. Over positioning- This is a scenario in which the customers have too limited a awareness of the brand.
3. Confused positioning- This is a scenario in which the customers have a confused opinion of the brand.
4. Double Positioning- This is a scenario in which customers do not accept the claims of a brand.
The Brand Resonance refers to the relationship that a consumer has with the product and how well he can relate with
it. The resonance is the intensity of customer's psychological connection with the brand and the randomness to recall
the brand in different consumption situations.
Brand Resonance
Definition: The Brand Resonance refers to the relationship that a consumer has with the product and how well
he can relate to it.
The brand resonance begins with:
• Brand Identification: The first and foremost step, is to ensure the brand identification with the customers, i.e.
creates awareness about the product and establish an association in the minds of customers with respect to its
usage and the segment for which it exists.
• Brand Establishment: To create a full meaning of the product in the minds of customers, so that they start
remembering it.
• Eliciting Response: Once the association is built with the customers, the next step is to elicit the responses, i.e.
what customers feel about the brand?
• Relationship: The next and final step is to convert the responses into building the customer’s strong relationship
with the brand.
In order to accomplish these four pre-requisites for creating the brand equity, the Six brand building blocks
need to be followed that are arranged in a pyramid-like structure called as Brand Resonance Pyramid.
1. Brand Salience: The brand salience means, how well the customer is informed about the
product and how often it is evoked under the purchase situations?
The marketer should not only focus on just creating the awareness about the product but also includes
the ease with which the customers can remember the brand and the ability to recall it under the different
purchase situations.
2. Brand Performance: The Brand performance means, how well the functional needs of customers are
met?
At this level of the pyramid, the marketers check the way in which product is performing and how
efficiently it is fulfilling the needs of the customers.
3. Brand Imagery: The Brand Imagery means, what product image the customer create in their minds?
This aspect deals with the customer’s psychology or the feelings that how they relate to the product in
terms of their social needs.
4. Brand Judgements: The Brand Judgement means, What customer decides with respect to the product?
The customers make the judgment about the product by consolidating his several performances and the
imagery associations with the brand. On the basis of these, the final judgment is made about the product
in terms of its Perceived Quality, Credibility, Consideration, and Superiority.
5. Brand Feelings: The Brand feelings means, what customers feel, for the product or how the customer is
emotionally attached to the product?
The consumer can develop emotions towards the brand in terms of fun, security, self-respect, social
approval, etc.
6. Brand Resonance: The Brand Resonance means, what psychological bond, the customer has created
with the brand?

This is the ultimate level of the pyramid, where every company tries to reach. Here the focus is on
building the strong relationship with the customer thereby ensuring the repeated purchases and creating
the brand loyalty.
Crisis marketing is all about leading a business out of a difficult situation with marketing tactics to secure the future of
the company. The practice encompasses a range of practical solutions that local and digital companies can use to master
critical times.
What is crisis management?
You can think of crisis management as a set of strategies and processes for dealing with unexpected negative
situations. In such situations, the brand’s reputation is at risk, first from the crisis itself, and then from how you
handle the crisis. In the short term, you need to determine how urgent the crisis is. Then your focus moves to
solving the immediate problem. In the long term, you need to deploy a strategic process of repairing brand
reputation and rebuilding consumer trust.
No matter how many safeguards and processes you put in place, you could suddenly find yourself facing an
unexpected crisis. Any business can become engulfed in bad publicity when a crisis hits. In today’s social
media environment, news travels fast, and you have to respond promptly and proactively. Even if you don’t
have a social media presence, your business is likely to have other digital assets today, such as a website and
online shop, or digital PR.
Sources of crisis
But where might crisis come from? Unfortunately, they can originate from a number of sources, and by their
very nature are totally unpredictable. There are some common categories of incident that you need to be
prepared for.
Natural disasters
The first, and perhaps most well-known type of crisis stems from natural disasters. These include earthquakes,
storms, tsunamis, and so on. Also, be mindful of social and political shocks, such as war, terrorism, coups, or
violent protests.
Cyber-attacks
Obviously, digital assets are vulnerable to cyber-attacks. Many companies have been hit by distributed denial of
service, of DDoS, attacks. Cyber-attacks can also lead to breaches or leaks of users’ personal data. Such leaks
can severely erode customer trust in a company.
Mis-deeds
A company that is exposed for conducting misdeeds, such as criminal or moral transgressions, is going to face a
serious crisis. For example, the company might have defied regulation, or worse acted in a clearly unethical
way. Customers are unlikely to want to buy products from a company that has been found guilty of illegal
activity.
Financial crimes
Financial crimes are a particular category of misdeeds. These relate to a company’s financial matters, and often
their tax affairs. This can be a PR disaster for a company, because its financial management might be clearly
seen to be at odds with the values that the company proudly promotes in its marketing literature. Most
customers regard it as unethical for companies to avoid paying their fair share of taxes, especially if the
company’s senior executives are being well compensated with large salaries and generous bonuses.
Supply chain failure
A failure in your supply chain can lead to stock shortages and empty shelves. Initially, you might be able to spin
this as evidence of booming demand for your products. However, if the problem persists, it will be seen simply
as a symptom of poor planning and bad infrastructure.
Safety scare
One crisis that all companies fear is a high-profile product recall or safety scare. People quickly lose confidence
in a company if its products are found to be defective. This can present a major brand risk.
Let’s consider a famous example. Remember when Johnson & Johnson had to recall Tylenol back in 1982?
This was its branded paracetamol (called acetaminophen in the US) product. The company moved fast to
address the crisis. It took a huge commercial hit in the short term, in order to earn consumer trust back in the
long term.
Staff issues
Don’t forget about staff crises too. Strikes and layoffs lead to bad optics for a company. They create the
impression of an ailing company that has lost the loyalty of its workforce. If these employees then go online to
vent their frustrations, this can become a brand’s worst nightmare.
Because of the changing musical landscape in the new millennium, in 2013 British music and entertainment
retailer HMV laid off many of its staff. Employees were given little warning of this move. Staff took over the
brand’s main Twitter account to provide a running commentary in a deeply bitter tone. Instead of trying to
control the message and reassert its brand image, the company simply deleted the tweets and failed to fully
address the reasons for the redundancy. This made a bad crisis even worse.
Disclosures
A more recent type of crisis that companies have faced centers on the issue of disclosures. This is particularly
important in the realm of influencer marketing. In some cases, influencers or brand ambassadors have not been
sufficiently clear about the fact that they are taking part in marketing when they are promoting a particular
brand. This can damage a brand and put its dishonesty on public display.
Unique Selling Proposition or USP is the one feature or the perceived benefit of a good which makes it unique from the
rest of the competing brands in the market. It is that very reason which motivates a buyer to purchase that product
even though it might be costlier than other products.
efinition: A unique selling proposition is the defining factor or characteristic that sets a company apart from its
competitors. Online and offline retailers aim to clearly communicate their unique selling proposition to
shoppers in marketing campaigns, product descriptions, and all other customer touch points.
Three Types of Unique Selling Propositions That Differentiate a
Business
Businesses want to sell their products or services as the all-around best option, but ultimately most propositions
tend to fall into one of three categories. Note that companies are not limited to just one of these, though it can be
hard to effectively communicate more than one proposition at the same time.
Each type of proposition is focused on a different value, and what the customers care about should dictate what
propositions a company focuses on. Establishing a buyer persona helps uncover which propositions will be
effective.
1. Products.
Establishes the business's claim as the provider of a product or service superior to what their competitors
provide. For example, a company selling rare used books can differentiate themselves based on unique, highly-
coveted products that can't be found elsewhere.
Target Value: Quality
2. Prices.
Cost plays a role in every buying decision, but it is often the focal selling point when selling to comparison
shoppers. Price-based propositions don't discount their quality: rather, they emphasize value. This appeals to
customers who are looking for a reason to spend less.
Target Value: Affordability
3. Support.
Some customers are looking for peace of mind and reliability when they make a purchase. While product and
price clearly play a role, what can really sell them is reliable support. These include return policies, technical
help lines, extensive online resources, or some combination of these factors. A support-based proposition is
selling a reassurance that no matter what happens, the customer will be taken care of. Support is especially
important for merchants who cultivate an ongoing relationship with their customers, such as those with
subscription services.
Target Value: Social connections
How to Define Your Unique Selling Proposition
The process of determining a unique value proposition varies based on the state of a business.
1. New or up-and-coming businesses.
New businesses need to establish their unique selling proposition as early as possible — and begin
communicating this to customers as soon as a connection is made. Creating a good first impression and
demonstrating your USP from the moment a shopper lands on your website or views a marketing asset it crucial
to capture their interest.
2. Established stores.
Companies with proven experience have a slight advantage, with easier access to social proof points such as
testimonials and customer reviews. As businesses accumulate more data about who their customers are and
what's important to them, it's entirely possible to shift a unique selling proposition to suit the findings.
Examples of Unique Selling Propositions
1. Focus on having a quality product.
"Our unique selling proposition is, 'affordable furniture of great quality with elite customer service.' Clearly
defining our USP to our customers has allowed us to quickly expand our furniture store since opening in 2010."
- Maribell Smith - Marketing Manager, Discount Direct Furniture & Mattresses
2. Help your customer solve a problem.
"Finding a personal trainer can be a pain. Our unique selling proposition helps make this process easier by
helping our customers find local personal trainers (at all price points) within 5 miles of where they live. They
can also read reviews by past clients to help them make better decisions."
- Jesse Silkoff - Founder & President, FitnessTrainer and MyTennisLessons.
3. Solve the customer’s pain point.
"Finding a quality contractor is a pain. We make this annoying process much more seamless for our customers.
They provide details on their specific project and then receive four different quotes within 5 minutes from the
top rated local roofers.”
- Dan Bailey, Founder & CEO, MyRoofingPal
4. Help educate customers on purchases.
Large and expensive purchases are important. GadgetReview features expert reviews of products that are
considered large and important purchases, helping customers make better buying decisions.
- Rex Freiburger, Founder, GadgetReview
5. Having high standards for what you sell.
It is important that we provide the best products to our customers. Our unique selling proposition is that we
carefully test each vaping product in house, to make sure each product is safe and provide customers with
customer reviews as a secondary source of quality. If a product has too many bad reviews, we will remove it
from our inventory.