The price elasticity is a measure of sensitivity of demand to changes in price. Pricing strategies can be challenging. There are two broad strategies. Market-skimming pricing price skimming means setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price, the company makes fewer but more profitable sales.
Market-penetration pricing means setting a low price for a new product to attract a large number of buyers and a large market share. Optional product pricing : the pricing of optional or accessory products along with a main product. Captive product pricing : setting a price for products that must be used along with a main product.
Product bundle pricing : combining several products and offering the bundle at a reduced price. Discount: a straight reduction in price on purchases during a stated period of time or of larger quantities. Segmented pricing: selling a product or service at two or more prices, where the difference in prices is not based on costs.
Customer-segment pricing involves different types of customers paying different pricing. Product-form pricing involves different prices for different versions of the same product.
Location-based pricing involves different prices for different locations, while time-based pricing involves different prices for different moments in time. Psychological pricing: pricing that considers the psychology of prices, not simply the economics, the price says something about the product. Reference prices are prices that buyers carry in their minds and refer to when they look at a given product.
Promotional pricing: temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales. Geographical pricing: setting prices for customers located in different parts of the country or world. This can be FOB-origin pricing: a geographical pricing strategy in which goods are placed free on board a carrier, the customer pays the freight from the factory to the destination.
Uniform-delivered pricing: a geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location. Zone pricing: the company sets up two or more zones. All customers within a zone pay the same total price, the more distant the zone, the higher the price. Base-point pricing: a pricing strategy in which the seller designates some city as a base point and charges all customers the freight cost from that city to the customer.
Freight-absorption pricing is a strategy in which the seller absorbs all or part of the freight charges to get the desired business.
Dynamic pricing means adjusting pricing continually to meet the characteristics and needs of individual customers and situations. International pricing: charging different pricing for customers in different countries.
After setting prices, there are often situations in which companies need to change their prices. Sometimes, the company finds it desirable to initiate price cuts, for instance when demand is falling, or price increases to improve profits. Consumers can react differently to changes in prices, as well as competitors.
When competitors change prices first, the firm has to respond. There are as many as four responses, namely: the firm can reduce its price, maintain its price but raise the perceived value of the product, improve the quality and increase the price or launch a low-price fighter brand to compete with the price change.
There is legislation surrounding price fixing talking to competitors to set prices , which is illegal. Predatory pricing selling below costs to punish competitor is also prohibited. Many countries also try to prevent unfair price discrimination and deceptive pricing. In order to produce a product, relationships with others in the supply chain are necessary. The term demand chain might be better, because it suggests a sense-and-respond view of the market.
A value delivery network is composed of the company, suppliers, distributors and ultimately the customers, who partner with each other to improve the performance of the entire system in delivering customer value. The marketing channel distribution channel is a set of interdependent organisations that help make a product or service available for use or consumption by the consumer or business user.
Channel members can add value by providing more efficiency and specialization in making goods. Some of the key function channel members do are: information gathering, promotion, contacting buyers, matching products and needs and negotiating agreements.
But also physical distribution, financing and taking over risks of carrying out the work. A channel level is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. Channel 1 is a direct marketing channel : a marketing channel that has no intermediary levels.
Indirect marketing channels are channels containing one or more intermediary levels. Channels are behavioural systems composed of real companies and people, who interact to accomplish goals.
Each channel member depends on others and they behave differently, which can lead to channel conflict : disagreement among marketing channel members on goals, roles and rewards, who should do what and for what rewards. Horizontal conflict occurs among firms at the same channel level. Vertical conflict is between different levels of the same channel.
For channels to work well, the role of the channel members must be specified. A conventional distribution channel is a channel consisting of one or more independent producers, wholesalers and retailers, each is a separate business seeking to maximise its own profits, even at the expense of profits for the system as a whole.
In contrast with this is the vertical marketing system VMS , a distribution channel in which producers, wholesalers and retailers act as a unified system. One channel member owns the others, has contracts with them or wields so much power that they all cooperate.
There are three major types of VMSs:. Corporate VMS is a vertical marketing system that combines successive stages of production and distribution under single ownership. Channel leadership is accomplished through common ownership. Contractual VMS is a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts. The most common example of a contractual VMS is the franchise organisation : a contractual marketing system in which a channel member franchisor links several stages in the production-distribution process.
There are also three types of franchises: manufacturer-sponsored retailer franchise systems, manufacturer-sponsored wholesaler franchise systems and service-firm-sponsored retailer franchise systems.
Administered VMS: a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties. Another development regarding channels is the horizontal marketing system : a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity. This can be with competitors, but also with non-competitors. A multi-channel distribution system is a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments.
This occurs when a company sets up multiple marketing channels to reach multiple customer segments and is most beneficial in complex markets, but also brings additional risks. Current changes in the channel organisation include disintermediation , which is the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries. Marketing channel design means designing effective marketing channels by analysing customer needs, setting channel objectives, identifying major channel alternatives and evaluating those alternatives.
The base is analysing consumer needs, since marketing channels are actually customer value delivery networks. Next comes setting the channel objectives. When identifying major channel alternatives, the company should look at three things:. Types of intermediaries. The company should identify the different types of channel members that can be involved in the channel.
The number of marketing intermediaries. Intensive distribution means stocking the product in as many outlets as possible. Finally, the firm should evaluate all of the alternatives using economic criteria, control issues and adaptability criteria. Marketing channel management means selecting, managing and motivating individual channel members and evaluating their performance over time. Managing and motivating other channel members means practicing partner relationship management to build long-term partnerships with other channel members.
Marketing logistics , or physical distribution, is the planning, implementing and controlling the physical flow of materials, final goods and related information from points of origin to points of consumption to meet customer requirements at a profit.
It basically means getting the right product to the right customer at the right place and time. It includes both outbound from company to customer and inbound distribution within the channel and reverse distribution moving returned products. It involves the entire supply chain management : managing upstream and downstream value-added flows of materials, final goods and related information among suppliers, the company, resellers and final consumers.
Logistics can be a source of competitive advantage and efficient ones can cut cost drastically. There is however a trade-off between minimal distribution costs and maximum customer service. Logistics include some major functions:. Distribution centres are large, highly automated warehouses designed to receive goods from various plants and suppliers, take orders, fill them efficiently and deliver goods to customers as quickly as possible.
Stock management involves deciding on the balance between too little and too much stock. Just-in-time logistic systems involve small stocks, while new stock arrives exactly when needed. Transportation affects the pricing of products, delivery times and the condition of the goods.
It can be via road, but also via railways, waterways and air carriers. Intermodal transportation means combining two or more modes of transportation.
Integrated logistics management is the logistics concept that emphasises teamwork, both inside the company and among all the marketing channel organisations, to maximise the performance of the entire distribution system. Cross-functional teamwork inside the company means an integrated and harmonized system.
Companies should not only improve their logistics, but also their logistic partnerships. They often do this at a lower cost and more efficiently, while the company can focus on its core business. Retailing includes all the activities involved in selling goods or services directly to final consumer for their personal, non-business use. Retailers are businesses whose sales come primarily from retailing. There are different types of retailers.
Self-service retailers serve customers who are willing to perform part of the service. Limited-service retailers provide some assistance in the service process, while full-service retailers assist customers in every step of the buying process. Speciality store: a retail store that carries a narrow product line with a deep assortment within that line. Department store: a retail organisation that carries a wide variety of product lines. Each line is operated as a separate department managed by specialist buyers or merchandisers.
Supermarkets are large, low-cost, low-margin, high-volume and self-service stores that carry a wide variety of grocery and household products.
Convenience stores are mall stores, located near residential areas and that carry a limited line of high-turnover convenience goods. Superstore: a store much larger than a regular supermarket that offers a large assortment of routinely purchased food products, non-food items and services.
Category killer: a giant speciality store that carries a very deep assortment of a particular line and is staffed by knowledgeable employees. Retailers can also be classified according to the price they charge for their goods and services. Chain stores are two or more outlets that are commonly owned and controlled. Their size allows for buying in large quantities at lower prices.
A franchise is a contractual association between a manufacturer, wholesaler or service organisation and independent businesspeople, who buy the right to own and operate one or more units in the franchise system.
Retailers must first segment and define their target market, before deciding upon how to differentiate and position themselves in these target markets. Retailers must decide upon three major product variables: product assortment, services mix and store atmosphere.
The product assortment should differentiate the retailer from competitors. The price a retailer asks for its product must fit the target market and position of the retailer. Retailers can use all of the five promotion tools to reach their customers, namely: advertising, personal selling, sales promotion, public relations and direct marketing. The place of the products, or location, is vital in retailing success.
A shopping centre is a group of retail businesses built on a site that is planned, developed, owned and managed as a unit. A regional shopping centre is large, containing more than 50 to stores. A community shopping centre contains between 15 and 50 retailers.
A neighbourhood shopping centre or strip mall generally holds 5 to 15 stores. Power centres are huge unenclosed shopping centres consisting of long strips of retail stores.
A lifestyle centre is a smaller open-air mall with upmarket stores. In current times, retailers are dealing with changing lifestyles and fierce competition for customer expenditure. The economic downturn provides a challenge for a lot of retailers. The wheel-of-retailing concept states that new types of retailers usually begin as low-margin, low-price, low-status operations but later evolve into higher priced, higher-service operations, eventually becoming like the conventional retailers they replaced.
The rise of mega-retailers also has its influence on the environment, squeezing out small competitors. The growth of non-store retailing via advanced technologies also provides new opportunities and challenges. Retailing technologies have become important as competitive tools. There is also a trend of green retailing, where retailers are adopting environmentally sustainable practices.
Wholesaling includes all the activities involved in selling goods and services to those buying for resale or business use. A wholesaler is a firm engaged primarily in wholesaling activities. Wholesalers add value by performing one or multiple of the following channel functions:.
Merchant wholesalers are independently owned wholesale businesses that take title to the merchandise it handles. They include full-service wholesalers , who provide a full set of services and limited-service wholesalers who offer less services to their customers.
Industrial distributors sell to manufacturers, while wholesale merchants sell primarily to retailers. Cash-and-carry wholesalers carry a limited line of fast moving goods. Drop shippers never carry stock, but select manufacturers who ship the product upon order. Brokers and agents. A broker is a wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation.
An agent is a wholesaler who represents buyers or sellers on a relatively permanent basis, performs only a few functions and does not take title to goods. Purchasing agents often have long-term relationships with buyers and make purchases for them. Like retailers, wholesalers must also decide upon the product, prices, promotion and place of their services. The promotion mix marketing communication mix is the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships.
It consists of five major promotion tools:. Advertising : any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Sales promotion : short-term incentives to encourage the purchase or sale of a product or a service. Direct marketing : direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. First, consumers are changing: they are better informed and more empowered.
Also, marketing strategies are shifting away from traditional mass marketing. Finally, communications technology is changing the way companies and customers communicate with each other. IMC recognizes all touchpoints where the company and customers meet and ties together all messages. In order to develop marketing communications, an understanding of the communication process is required.
Determining the communication objectives. The target audience can be in any stage of the buyer-readiness stages. The buyer-readiness stages are the stages consumers normally pass through on their way to a purchase, including awareness, knowledge, liking, preference, conviction and finally the actual purchase. A goal of a marketer is to move target customers through the buying process.
Designing the message. The message should get attention, hold interest, arouse desire and obtain action. Attention, interest, desire and action come together as the AIDA model. The marketer determines the content of the message. Rational appeals relate to the audience self-interest and their benefits.
Emotional appeals attempt to stir up emotions that can motivate purchase. Marketers must also decide the message structure and the format. Choosing the channels of communication. There are two broad categories. Personal communication channels are channels through which two or more people communicate directly with each other, including face to face, on the phone, via e-mail or even through Internet chat.
Personal communication channels include word-of-mouth influence : personal communications about a product between target buyers and neighbours, friends, family members and associates. Buzz marketing is cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities.
Non-personal communication channels are media that carry messages without personal contact or feedback, including major media, atmospheres and events. Affordable method : setting the promotion budget at the level management thinks the company can afford.
Percentage - of-sales method : setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales prices.
Objective - and-task method : developing the promotion budget by 1 defining specific promotion objectives, 2 determining the tasks needed to achieve these objectives and 3 estimating the cost of performing these tasks. The sum of these costs is the proposed promotion budget. The promotion mix consists of five tools. Advertising can reach masses of geographically dispersed buyers at a low cost, but it cannot be as persuasive as people.
Personal selling is the most effective in certain stages of the buying process, but is quite costly. Public relations PR is believable but is often underused. Direct marketing is less public and delivered to a certain person. Marketers can choose from two basic promotion mix strategies. A push strategy calls for using the sales force and trade promotion to push a product through channels.
A producer promotes a particular product to channel members, who in turn promote it to final consumers. Having set the promotion budget and mix, the next task is to integrate into a promotion mix. There are legal and ethical issues to consider when thinking about marketing communications. Marketers must avoid false or deceptive advertising and must follow the rules of fair competition. Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.
The first step to advertising is setting advertising objectives based on past decisions on the target market, positioning and the marketing mix. An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time.
Informative advertising is often used when introducing a new product. Persuasive advertising is more used when competition is increasing. Reminder advertising is relevant for mature products and is used to maintain customer relationships. After setting the advertising objectives, the advertising budget is set.
The advertising budget is the money and other resources allocated to a product or a company advertising programme. The budget is often dependent of multiple factors, such as the stage in the product life cycle, market share and the number of competitors in the market. The next thing in the advertising process is developing an advertising strategy : the strategy by which the company accomplishes its advertising objectives. It consists of two major elements: creative advertising messages and selecting advertising media.
When creating the advertising message, it is important to gain the attention of the customer and to stand out from the clutter of all other advertisements. Branded entertainment, or brand integrations, involves making the brand an inseparable part of some form of entertainment.
The message strategy is the general message that will be communicated to consumers. Advertising appeals should have three characteristics. They should be meaningful, believable and distinctive. After that, the message needs to be executed. There are different execution styles : the approach style, tone, words and format used for executing an advertising message. Some styles are:.
The marketer must also decide upon the tone and format of the advertisement. The illustration is the first thing noticed, while the headline must entice the right people to read to advertisement.
The copy main block of text in the ad must be simple, strong and convincing All of the elements must work together in order to persuade the customer. The other major part of developing an advertisement strategy is selecting advertising media. Advertising media are the vehicles through which advertising messages are delivered to their intended audiences. To select media, a marketer must decide upon the reach and frequency of advertising that is desired. Reach is a measure of the percentage of people reached in the target market, while frequency is a measure to show how many times the average person is exposed to the message.
An advertiser will want to reach the desired media impact: the qualitative value of the message exposure. Media planners must also choose the best media vehicles : specific media within each general media type. Furthermore, they need to consider audience quality, audience engagement and editorial quality. Some media sources are more believable than others.
Finally, the advertiser must decide upon the media timing. Continuity means scheduling ads evenly within a given period, while pulsing means scheduling ads unevenly over a given time period. Measuring advertising effectiveness and the return on advertising are becoming important. Return on advertising investment is the net return on advertising investment divided by the costs of the advertising investment.
There are two types of advertising results: communication effects and sales and profit effects. Advertising is organised differently in different companies. It ranges from someone handling it in the sales department, to advertising departments and advertising agencies : a marketing services firm that assists companies in planning, preparing, implementing and evaluating all or portions of their advertising programmes.
Activities involved in PR are press relations, product publicity, public affairs, lobbying and managing investor relations. Students are actively encouraged to form study groups to discuss course material, fostering a greater depth of learning experience. The Institute has a traditional approach to assessment. Formative assessment is provided by ICM Teaching Centres as and when appropriate and may include; essays, in-class tests, role play exercises, presentations and projects.
However, in terms of gaining a professional qualification, and in order to maintain standards, ICM believes that students should be formally assessed on the body of knowledge covered during the course and be examined as individuals on the required learning outcomes. Typically, each ICM award at undergraduate level comprises four units of 20 credits each. The learning hours for each unit are subdivided into appropriate categories of learning opportunities, such as lectures, seminars, preparation time, directed study, time spent on assessment items and exam preparation.
At least one quarter of this time is usually devoted to formal contact time. A further one quarter of this time is related to directed learning.
The balance of workload is comprised of individual, self-managed student learning and revision. In recognition of the NQF levels and with reference to appropriate National Occupational Standards, the Institute has produced the following level descriptors which should be read in conjunction with the table provided in section 5.
ICM Certificates represent a level of qualification that recognises the ability to gain, and where relevant apply a range of knowledge, skills and understanding. ICM Certificate holders should be able to display competence in the application of knowledge in the performance of a range of work activities, some of which may be routine and predictable with some being complex or non-routine.
Learning at this level involves gaining knowledge and skills appropriate for individuals working semi-independently, or receiving basic supervision and training from others in their field of work. Students should begin to develop a degree of individual responsibility or autonomy in their study as well as the ability to collaborate with others, for example through participation in work groups or teams. Successful completion of the ICM Certificate enables entry to the first year of appropriate degree programmes at a range of Universities.
For a complete list of progression routes please refer to the website. ICM Diplomas represent a level of qualification which recognises the ability to gain, and where relevant apply a range of knowledge, skills and understanding. Learning at this level involves obtaining detailed knowledge and skills appropriate for people working independently, or providing basic supervision and training of others in their field of work and people wishing to go to University.
Progression is available from the ICM Diploma to the second year of relevant degree programmes at a range of Universities. Students holding other relevant and equivalent qualifications which contain ICM Diploma subjects could qualify for entry as well as subject and Level exemptions. ICM Advanced Diplomas represent a level of qualification which involves specialist learning and detailed analysis of a high level of information, knowledge and skills in a specified area of work or study.
Students undertaking an ICM Advanced Diploma should demonstrate the depth of knowledge and understanding of an area of work or study to enable them to formulate solutions and responses to complex problems and situations.
These individuals need to demonstrate significant levels of knowledge, a high level of work expertise in job roles and competence in managing and training others. Progression is available from ICM Advanced Diplomas to the final year of relevant degree programmes at a range of Universities.
Advanced Standing and Exemptions: Students holding relevant degrees and equivalent qualifications which contain ICM Certificate, Diploma and Advanced Diploma subjects could qualify for entry as well as subject and Level exemptions. Students at this level study highly developed and complex levels of knowledge enabling the development of in-depth and original responses to complicated and unpredictable problems and situations.
Indicative competencies involve the application of a range of fundamental principles across a wide and often unpredictable variety of contexts as well as the ability to perform technical or professional work activities in a variety of contexts with a substantial degree of personal responsibility and autonomy.
A qualification at this level is appropriate for people working as knowledge-based professionals or in professional management positions. Refer to Section 6 for Advanced Standing arrangements for mature candidates. Students at this level of study should display a mastery of high level knowledge and skills and have professional and research-based skills.
This qualification is equivalent to two thirds of a Masters degree MBA or MA and advanced standing can be given onto a range of Masters degrees. Reference is made to levels in the UK National Qualifications Framework and example qualifications at each level. Student Membership can be obtained by completing the appropriate Student Registration Application form and returning the form and the Student Registration Fee to the Institute. The Student Registration fee is valid for one year and can be renewed annually.
Copies of all qualifications and Awards obtained by the student must also accompany the Academic History form. The Academic History form is used to ensure that students are qualified to commence their studies at the Level they have selected.
Group 3: A special rate exists for students in countries which have a emerged from conflict b countries in which the general population is subject to great poverty and c countries in which the UN acknowledge that the level of economic activity and national per capita income is unacceptably low. These Levels are designed to provide a structured and progressive level of knowledge. All students are required to commence their studies at the Diploma Level of all programmes unless they are able to claim subject-for-subject or Level exemptions.
Applicants over the age of 20 who do not hold one of the recommended entry qualifications may also register for some Diploma Level programmes providing they have been in full-time employment for a minimum of two years and can produce a letter from their employer to confirm this. Invigilation of examinations is undertaken either by external Invigilators who are appointed by the Institute or by the British Council.
Candidates must be registered and paid-up Student Members of the Institute at the time they undertake their examinations. Full details of Examination dates can be found on the ICM website. There are however some specialist programmes where a higher subject fee may be payable. If you have any queries relating to fees please contact your Teaching Centre. To enter for an examination you need to complete the relevant Examination Entry form and submit it to the Institute. The Timetable for each year states the Closing Date for receipt of entries for each examination Series.
Please visit the website to view the ICM examination timetable. The Institute operates a triple marking and moderation system. In the event that the moderator increases the original marks awarded, the fee for re-marking your script will be refunded to you. The Institute retains answer scripts for a maximum period of six months.
If you sit, for example, for one or more subjects in March you will not receive your results until June. This means that if you were to fail a subject in March, you would not be able to re- sit the subject in June, as you will have missed the Closing Date for the June Series. Just enter your email address and we'll send you the PDF of this guide for free. The Methods: the strategies and processes you'll use to create your plan and execute it in your own business.
This is the bulk of each chapter—because in digital marketing, how you execute a strategy is key. And in this Guide, we share the exact methods we use here at DigitalMarketer. The Metrics: the numbers you'll watch to measure your success and identify areas that need tweaking or are worth doubling down on. The Lingo: the terminology used by experts, so you can communicate intelligently even if you don't consider yourself a pro. The Roles: the people in your organization who will likely have responsibility for planning and running each digital marketing tactic.
We've organized this Guide in a logical progression. Though you can jump around, learning the tactics in whatever order you feel you need them, we recommend you read through the chapters in order. Take your time. Read and study one chapter at a time. Apply what you learn. And when you feel you've got the methods up and running, move on to the next chapter.
You'll be surprised at how quickly you can implement these digital marketing tactics if you focus on them one at a time. Then, when everything is up and running, you can focus on optimizing and improving your processes for maximum growth.
It's the master template upon which every other digital marketing discipline and tactic is built. The Customer Value Journey helps you automate the entire customer acquisition process, so you can sell without overtly selling and promote your product or service without ever being pushy or creepy.
The key is a "conversion funnel," a multi-modality campaign that seamlessly and subtly leads a prospect to a desired action Learn all 8 stages and how you'll use them to create a winning strategy for your business.
Done right, your content marketing will not only attract prospects but also move them through a marketing funnel to drive more sales and grow your business. It does that by taking content marketing out of the blog What do we mean by that? Simply that content marketing can't do its job if it's limited to blogging.
It's so much more than blogging. You see, content marketing is a full-funnel tactic, meaning it should deliver valuable content at every stage of the Customer Value Journey. To move your prospect through the Customer Value Journey, you'll need to create content that satisfies their needs at each of the 3 conversion funnel stages: Awareness, Evaluation, and Conversion.
You'll learn all about it—including how to plan your content marketing strategy and how to create "perfect" content— here. The secret to powerful digital marketing is traffic. If you can master traffic acquisition, you have a solid foundation for higher sales and growth. Keep in mind, though, there's more to digital advertising than throwing up an ad and hoping for results. Well, I guess you can You have to have a plan, and you have to know how to separate the winners from the losers.
Armstrong ,. Patricia M. Other Format Pearson April Get A Copy. Spiral-bound , pages. Published April 1st by Pearson - Prentie Hall first published More Details Original Title. Friend Reviews. To see what your friends thought of this book, please sign up. Lists with This Book.
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