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Types of Marketing

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Everything you need to know about the types of marketing. Marketing as a discipline is constantly evolving.

The existing concepts are analyzed and updated to suit the current economic and social trends. Newer concepts also emerge as a result of technological innovations and marketing research.

The older marketing theories which were widely accepted a few decades ago are no longer relevant in today’s scenario.

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Marketing revolves round the needs of consumers. All marketing efforts are put to meet manifold needs of the customers.

Consumer is the king in modern marketing concept. Consumer needs are shaped by culture, society, family, work group or the like. Any change in surroundings will affect the need and consumption pattern of consumer.

Some of the types of marketing are:-

1. Green Marketing 2. e-Marketing 3. Social Marketing 4. Service Marketing 5. Holistic Marketing

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6. Direct Marketing 7. Internal Marketing 8. Interactive Marketing 9. External Marketing 10. Relationship Marketing.


Types of Marketing: Green Marketing, e-Marketing, Social Marketing, Holistic Marketing, Direct Marketing and a Few Others

Types of Marketing – Top 5 Types: Social Marketing, Service Marketing, Green Marketing, Holistic Marketing and Direct Marketing

Marketing as a discipline is constantly evolving. The existing concepts are analyzed and updated to suit the current economic and social trends. Newer concepts also emerge as a result of technological innovations and marketing research. The older marketing theories which were widely accepted a few decades ago are no longer relevant in today’s scenario.

The requirements of the contemporary marketing environment necessitate the development of new practices and theories that will help organizations in successfully marketing themselves in modern times.

Type # 1. Social Marketing:

Social marketing is the application of commercial marketing principles to achieve a social good. It began as a formal discipline in the 1970s, when Philip Kotler and Gerald zaltman published “social marketing- an approach to planned social change” in the journal of marketing.

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They observed that the same marketing principles that were used by commercial marketers to sell products and services could also be used to sell ideas, attitudes and behaviour for the betterment of human life.

The main goal of social marketing is not to make financial gains, but to bring about behavioural change for societal benefit. It includes promoting the use of seatbelts while driving, promoting regular health checkups, persuading people to get their children vaccinated, asking people to give up tobacco use, etc.

Amitabh Bachchan campaigning for polio eradication, zeenat aman encouraging the patients to get treatment, boxer Virender Singh telling people to donate blood, etc. are examples of social marketing.

Kotler, along with Alan Andresen defined social marketing as “differing from other areas of marketing only with respect to the objectives of the marketer and his or her organization. Social marketing seeks to influence social behaviours not to benefit the marketer, but to benefit the target audience and the general society.” Social marketing concept has progressed well in developed countries like USA, UK, Australia and Germany.

Principles of Social Marketing:

i. Efforts should be made to understand the customers, i.e. the people whose behaviour is sought to be changed. Their needs, motivations and fears should be analysed by questioning and listening to their viewpoints.

ii. The audience should be divided into sub groups to increase effectiveness of the social marketing programmes. People with shared needs and characteristics should be identified and targeted with specific policies. For example, for a polio eradication campaign, parents with young children below age of five would be the target group.

iii. The essence of social marketing is to bring about positive changes in people’s behaviour. The social marketing group should interact with the people, get involved with them and encourage them to bring about changes in their beliefs and lifestyles. An effective communication policy is very vital for making the people adopt changes.

iv. The forces which motivate people to act should be recognized. Plans should be expressed to them in such a way that it makes sense to the people and helps them understand how this plan can benefit them or the society.

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v. A wide range of communication tools should be used to reach the people. Mass media like television, radio, newspapers, and outside advertising media like billboards, posters, etc. should be utilised to ensure wide coverage.

vi. The customers should be involved in planning and implementing the behaviour change programme. The views of the public should be taken into account while developing the policies and delivering the service.

vii. Collaborations should be formed with partners, stakeholders and other organizations sharing the same values and beliefs in order to improve communication and encourage effective engagement with audiences.

viii. Social marketers should be accountable in communication and marketing activities and demonstrate high ethical standards. They should adhere to values like integrity, honesty and impartiality.

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Social Marketing Process:

1. Preparation:

In the preparation phase, the foundation for the social marketing process should be laid. It is essential to have an understanding of the problem, the audience to be targeted and the environment in which the programme will operate. There should be an agreement among the stakeholders about the planning process, project goals, the resources required, the communication media to be used, etc.

2. Define the Problem and the Goal:

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The problem should be defined from the social perspective. The potential causes of the problem should be studies and the desired outcome should be outlined. Other similar campaigns should be analysed to gain an understanding about the specific problem and how the anticipated results can be obtained.

For example, if the problem is drug abuse among youths, the underlying cause could be unemployment and boredom. Initiatives providing vocational training to such youngsters along with de-addiction counseling may help to control the menace.

3. Understand the Customer by Gaining an Insight:

It is important to identify the target segment for the social marketing programme. By analysing the customer’s current behaviour, beliefs and lifestyle, an insight about his personality can be gained. The customer should be informed about the benefits he could gain by bringing about a change in his behaviour.

Steps should be taken to minimize the effects of the probable barriers that might prevent him from changing. Specific behavioural objectives for each target market should be set keeping in view their uniqueness.

4. Develop Strategy:

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A vision for the future should be created. The potential involvements with the customers have to be decided in advance. The objectives should be prioritized on basis of their importance and the most important one should be accomplished first.

The sequence of the customer’s journey from current behaviour to visualized behaviour also needs to be planned. Compelling campaign logic should be in place, it can be formulated by interacting with the public.

An agreement should be reached with all the stakeholders regarding the core elements of the strategy—the messages, language, symbols, communication networks, etc.

5. Implement:

The strategy so developed has to be put into action. The timeline for accomplishment of tasks should be fixed. The planned interventions should be pre-tested to check if any changes need to be made.

The marketer should carry out the involvements and interactions with the target group and encourage them to change their behaviour and beliefs for the long-term benefits of the society as a whole.

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6. Review:

The progress that is being made as a result of these social marketing efforts should be measured. The organization should learn from each step and amend the policies wherever required. The experience should be shared with other organizations having similar objectives. The ultimate purpose of social marketing is to bring about societal benefits.

The impact of the social marketing can be seen in the positive changes that have resulted because of such endeavors, like reduction in tobacco consumption, fall in infant mortality rate, increase in number of girls attending schools, etc.

Type # 2. Service Marketing:

Services are intangible economic activities that fulfill certain needs of a customer. Some services are purely intangible in nature while some are associated with tangible goods. Production and delivery of services is simultaneous, i.e., services cannot be stored and are consumed at the point of sale. They cannot be seen or touched, but only experienced.

Examples of services are banking, insurance, hair dressing, catering, medical services, etc. Services are very different from products and as such they need different strategies to be successfully marketed.

Unique Features of Services:

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i. Intangible:

Services are non-physical. They cannot be held, seen, touched or tasted. They have no ownership and cannot be stored. The degree of intangibility varies from service to service. Some services like teaching have almost nil tangible components whereas others like catering, dress-making or medical services are associated with tangible products like food, clothing or medicine.

ii. Variable:

No two instances of service exposure are same. Even if the same service provider is providing the service to different clients, some differences, however minute are prone to be there. It is more difficult to standardize services than it is to standardize products. The quality of service also depends upon the place and time it was delivered on.

In many instances, services may be customized for individual clients. For example, a teacher may adopt different methods of teaching for the intelligent and weak students.

iii. Inseparable:

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Services are inseparable from their providers. They are produced, delivered and consumed simultaneously. A particular doctor’s service has no existence separate from him or the skills of a hair dresser cannot be isolated from her.

iv. Perishable:

A service ceases to exist the second it has been consumed. The experience of classroom teaching ends for the student the moment the teacher closes her notes; the lecture delivered at that point of time can never be repeated. It is highly perishable. Service capacity loses its usefulness if not utilised in time. An empty seat on a moving bus denotes wasted service capacity. Its utility cannot be reclaimed.

Marketing for services is very different from marketing products due to the lack of a tangible component. But even services have some physical manifestations—ambience of a bank, food in a restaurant, arrangement of furniture in a classroom, etc.—which represent the quality of the service

Provider to the customers. The people providing the service also contribute to the perception of the clients. Good natured, reliable and courteous staff can help to create a positive image in minds of customers. On the other hand unresponsive staff, dirty environment or mistakes in the company’s website will turn away potential consumers.

Type # 3. Green Marketing:

Green marketing is the marketing of products in an environmental friendly way. It combines the satisfaction of consumer’s wants and needs with the conservation and protection of the natural environment.

Green companies may produce goods that are environmentally friendly or adopt a production method that is least damaging to natural resources. Green marketing is also known as sustainable marketing.

The four elements of the marketing mix, i.e. product, price, place and promotion are combined to market products that are environmentally superior to available substitutes. The ecological benefits of green marketing may be in forms of reduced waste, decreased emissions of toxins, better energy efficiency, etc.

The American marketing association (AMA) defines green marketing as:

Retailing definition- the marketing of products that are presumed to be environmentally safe.

Social marketing definition- the development and marketing of products designed to minimize negative effects on the physical environment or to improve its quality.

Environmental definition- the efforts by organizations to produce, promote, package, and reclaim products in a manner that is sensitive or responsive to ecological concerns.

Green marketing takes into account the concerns of the consumers about promoting conservation of the ecosystem. Businesses are recognizing the many opportunities and competitive advantages of eco-sustainability.

Consumer’s world-wide are gaining awareness about environmental issues and are beginning to appreciate sustainability efforts of organizations. Thus the market for eco-friendly products and services are on the rise.

Companies are leveraging on the rising popularity of sustainability in many ways:

1. Promoting the environmental aspects of a product. It is specified on some books and notebooks that they have been made from recycled paper.

2. Introducing new products specifically made for those concerned with environment conservation. For example, energy efficient tube lights and bulbs that help to save electricity.

3. Redesigning existing products in an ecological manner. In the past deodorant cans used to contain CFC which harms the environment, but now many cosmetic companies have stopped using it.

4 Ps of Green Marketing:

Green marketing products and solutions are arrived at by combining the four elements of the traditional marketing mix in an ecologically friendly way that would appeal to consumers concerned about environmental issues.

I. Product:

The product in a green marketing mix should be designed in a way that meets the needs of the customer while having minimum impact on the environment.

It should be kept in mind that even though some consumers are very interested in environmental concerns, no one will buy something that is environmentally safe but does not satisfy their needs. Manufacturers have to produce goods that customers need in order to be successful.

Product Options for Green Marketing:

(i) Products made from recycled goods.

(ii) Products that can be reused or recycled. For example, bottles of health drinks bournvita or Horlicks can be reused.

(iii) Efficient products which save electricity, water, fuel, etc. like electric bulbs which conserve energy and cars which give good mileage.

(iv) Environmentally safe packaging, using paper instead of polythene wrappers.

(v) Organic products, like organically grown fruits and vegetables.

II. Price:

Pricing is an important factor of marketing mix. Customers will be willing to pay a premium for green Goods only if they feel it is worth the value. If green marketing gives them additional value for money, they will be delighted.

This value could be improved performance, better design, fuel saving, etc. the biggest upside of green marketing is that environmentally responsible products save costs in the long run even if they involve a greater initial investment.

III. Place:

The distribution channels and the place where the goods and services are available have a significant impact on customer’s buying decisions. Customers will not go out of their way to buy environmentally friendly products for the sake of it. The company should ensure that its products are easily available to a wide variety of customers.

The location should differentiate a firm from its competitors. In order to be credible, a firm should also adopt a logistic system that is ecologically viable. Otherwise the company would not be able to maintain the customer trust for long.

IV. Promotion:

Promotion mix includes advertising, sales promotion, publicity and direct marketing. Successful green marketers will use sustainable promotional tools and practices to reinforce environmental credibility. Advertising is one of the most criticised aspects in green marketing. If a producer is able to instill eco- friendliness in advertising, he would be able to command the goodwill and trust of customers.

Many companies are replacing print advertisements and catalogues with online advertising and e-marketing. Some enterprises have cashed in on the governmental ban on polythene bags in certain areas; they sell bags made of biodegradable materials. Companies can also enter into meaningful collaborations with other green marketing firms, governmental associations and not for profit organizations to promote the cause of environmental ethics and sustainability.

The secret of successful green marketing lies in balancing the economic aspect of profitability with the social responsibility of environmental sustainability. Smart marketers will devise ways to integrate ecological benefits with improved product performance. Green marketing is still a new concept and much needs to be done to explore its full potential.

Positive results can be achieved only by customer satisfaction, as is the case of any form of marketing. Credibility is a very crucial factor here. The manufacturer has to build up the trust and confidence of his customers to be able to convince them of his sincere conservation efforts. Sustainable marketing is not a fad; it is the way to ultimate long-term success.

Green marketing processes will help in waste reduction, energy conservation, and better utilisation of resources. Higher efficiency in operation along with greater customer satisfaction will benefit not only the environment, but also the organization for many years to come.

Type # 4. Holistic Marketing:

In the modern marketing world, organizations are looking beyond the traditional marketing outlook and are recognizing the need to consider marketing as a comprehensive process, a vital component of the broader economy and society. Holistic marketing enables the company to view its marketing efforts as a “whole” and develop an overall complete marketing plan.

The organization is not considered as just a single isolated entity, but as a constituent of the overall business world and economy. Multiple perspectives on the company’s commercial activities are developed instead of holding on to a one- dimensional approach. Holistic marketing recognizes that when it comes to marketing, “everything matters”, and it is necessary to have a broad integrated perspective towards all aspects of marketing.

Holistic marketing considers the whole business system while developing a marketing strategy. The emphasis is not only on the products and services provided but also on the people who are involved in creating and marketing them. Each component of the marketing strategy is designed as a part of an overall unified strategy.

Marketing efforts are directed towards implementation of all the components in a synchronised method. All the marketing activities are coordinated to achieve synergy and deliver the best possible value to the customer. Holistic marketing is an emerging concept, but is very likely to gain popularity throughout the world in the coming years.

The Four Components of Holistic Marketing:

I. Integrated Marketing:

Integrated marketing is the interlinking of all the marketing efforts in order to improve their effectiveness. All the marketing decisions and activities are integrated to deliver enhanced value to the customer.

This includes the various aspects of the modern marketing mix, i.e. the 7 Ps:

(i) Product- Design, features, colour, branding, style, quality, safety mechanism, warranty, research and development, packaging, labelling, after-sales services, etc.

(ii) Pricing- Pricing policies, pricing strategies, discount, price discrimination, payment terms, credit terms, profit margin, seasonal pricing, resale prices, etc.

(iii) Place- Channels of distribution, warehousing, inventory management, transportation, order processing, etc.

(iv) Promotion- Advertising, personal selling, sales promotion, public relations, marketing communication and media mix to be used, etc.

(v) People- Salespersons, customer care executives, grievance handlers, waiters, customer support staff, etc. who deal with the customers.

(vi) Processes- The steps, procedures and sequence of activities that result in the ultimate transfer of ownership of products/services from the manufacturer to the customer.

(vii) Physical evidence- Ambience, tangible components of services, physical facility of the buildings where service is provided, brochures, business cards, etc.

Traditionally, the elements of marketing were viewed from the seller’s point of view, but in case of holistic marketing it is necessary to consider the buyer’s viewpoints also. The seller considers each element of marketing as a tool to influence buyer’s decisions; the buyer, on the other hand considers how each aspect of marketing delivers him value.

Robert Lauterborn, a professor at the University of North Carolina gave the concept of 4 Cs as opposed to the 4 Ps of the traditional marketing mix. The 4 Cs model is a customer oriented one. He felt that marketers often have a narrow viewpoint about the marketing elements and do not give due consideration to the views of consumers. His 4 Cs examine the marketing scenario from the eyes of the customer.

(i) Consumer (vs. Products):

The emphasis is on the needs and wants of the customers instead of the qualities of the product. This approach stresses on the fact that first the wants of the customers should be identified and the products should be customised according to their requirement. In today’s world, customers are very demanding.

Therefore it becomes even more impertinent that producers offer them goods and services according to their desires. The companies that produce “what the customers want” are the ones who are able to garner a larger market share in their product categories.

(ii) Cost (vs. Price):

The cost refers to the monetary value the customers pay for buying a product or service. This is often the major factor that determines a buyer’s purchasing decisions. The seller has to fix the price of his product keeping in view his targeted audience’s nature and expectations.

The customers will be willing to pay the cost of acquiring something only if they feel if they are getting good value in exchange for their money.

(iii) Convenience (vs. Place):

Convenience to buy refers to how easy it is for the customer to access the place where the goods/services are offered. In the modern world, the customer is often strapped for time and prefers to buy from places that are in close proximity to him. Also sellers who provide home delivery are given a preference.

Many companies have cashed in on the widespread usage of internet and the convenience it provides to customer by providing them the ease of online shopping. Flipkart(dot)com, homeshop18(dot)com, indiaplaza(dot)com, infibeam(dot)com, etc. are some examples of online shops in India.

(iv) Communication (vs. Promotion):

Communication is to customers what promotion is to producers. Promotion includes advertising, sales promotion, publicity, etc. which the producer uses to manipulate the customer’s thought processes.

Communication, on the other hand, is a two-way process, it is about the free flow of information between the seller and the buyer. The manufacturer should make the promotion process interactive and encourage customers to share their suggestions and opinions with them.

II. Internal Marketing:

Internal marketing is a philosophy according to which the employees of a firm should be treated as “internal” customers of the business and due regard should be given to the satisfaction of their needs as well. Internal marketing is about the relationship shared by the employer with the employees.

Communication is one of the most important aspects of internal marketing. The vision, mission, policies and goals of the firm should be conveyed to the employees so that they share the same views and beliefs as the management.

The core values of the business should be aligned with those of the employees to ensure more efficient operations and better customer service. An effective internal marketing strategy makes certain that the company’s policies and plans are intimately understood by the employees.

The goal of internal marketing is to build a positive image of the company in the eyes of the employees. The company’s vision should be so ingrained in the employee’s psyche that the adherence to this vision is central to everything the employee does.

Internal marketing helps to create a well- informed, motivated, enthusiastic and skilled workforce that is essential to improve productivity and provide best quality customer service. There are two levels of internal marketing:

(i) Coordination within the Marketing Department:

At the first level, coordination between the various activities within the marketing department should be built up. The functions of advertising, sales promotion, market research, customer support, etc. should be aligned with one another so that all the efforts are directed towards the common goal.

(ii) Coordination of the Marketing Department with the other Departments:

Marketing is not the responsibility of solely the marketing department. The other departments in the organization like HR, finance, production, logistics, etc. all have a role to play in the overall marketing function of the organization.

The activities of each of these departments must be aligned with those of the marketing department in order to attain the company’s long-term goals. After all, it is the actions taken by the marketing department that ultimately create sales and profits for the business.

III. Relationship Marketing:

One of the main objectives of marketing is to build deep meaningful relationships with the various stakeholders in the organization. In holistic marketing, the organization realizes the importance of maintaining enduring relationships with the customers, employees, suppliers, distributors, shareholders, financers, dealers, media, government agencies, community, etc.

The ultimate goal of relationship marketing is to build a strong marketing network consisting of the company and it’s supporting stakeholders with whom it has commercial relationships.

Relationship marketing requires the knowledge about the different constituents of the environment, and also an understanding of their needs, desires and expectations. Relationship marketing involves concepts like Customer Relationship Management (CRM) and Partner Relationship Management.

IV. Performance Marketing:

The concept of performance marketing relates to understanding the issues related to financial, legal, ethical, social and environmental effects of the firm’s various marketing activities and programmes. Financial accountability and social responsibility are aspects of performance marketing. The company is accountable to each of its stake­holders in one way or the other.

It has to:

(i) Generate profits in order to pay dividend to shareholders and to maximise their wealth.

(ii) Provide high quality products to customers at reasonable rates and practice ethical business processes.

(iii) Fulfill legal obligations and pay taxes to the government.

(iv) Contribute to community development and growth.

(v) Minimise negative impact on the environment.

Performance marketing examines the impact of the organization’s actions on the constituents of the environment of the business. Holistic marketing aims to maximise the benefits and value delivered to the various stakeholders of the business while trying to minimise the negative influences on the environmental components.

Benefits of Holistic Management:

1. Helps in brand building and improving goodwill of the organization as meaningful relationships are built with each constituent of the environment.

2. Holistic marketing helps to differentiate a company from its competitors who still follow a narrow concept of marketing.

3. Better relations are established with customers as their viewpoints are also taken into account while developing marketing strategy.

4. Holistic marketing helps an organization to establish a professional image in the international scenario.

5. There is more scope for expansion and growth of business for companies following the principle of holistic marketing.

6. Better employer-employee relations are established which results in a motivated, satisfied and productive workforce.

Marketing in the contemporary world is not just limited to store- based retailing; marketing has now moved out of the confines of traditional modes of operations and has entered into wider and newer spheres which offer unlimited growth opportunities.

In the past, people were required to get out of their homes, visit shops, search for the goods they wanted, and ultimately make purchases. But in the current scenario, the process of marketing has become much more simplified keeping in view the changing needs of the customers.

The modern customer is strapped for time, and he gives more priority to convenience and ease of purchasing. Online marketing and direct marketing are two concepts that allow the customer the ease of shopping from home according to his convenience.

Type # 5. Direct Marketing:

Direct marketing is the method of selling goods and services directly to the customers rather than through retailers. Firms involved in direct marketing communicate directly with the target customers with specific promotional techniques. It helps the business to build better customer relations because the business connects to the prospective customers directly.

It is basically about building loyalty in existing customers and prospecting new ones. Direct marketing is superior to other forms of mass marketing as direct marketing allows the firm to reach particular target markets.

Mass media advertising may reach a larger audience, but it is possible that a major portion of that audience is not even interested in the product. Direct marketing scores an advantage here—only those people are contacted who would be genuinely interested in the product.

Features of Direct Marketing:

(i) Only the audience that is most appropriate for the firm’s products or services is targeted.

(ii) Higher efficiency because marketing efforts are directed only towards those who are likely to use the products.

(iii) Flexibility in choice of marketing methods to be adopted.

(iv) It is easier to fix accountability as compared to other methods.

Channels of Direct Marketing:

I. Direct Mail:

Direct mail can be an effective method of making sales if used properly. With direct mail marketers can target their customers based on demographics, education and profession or buying patterns. It refers to catalogues, advertisements and other unsolicited material delivered by mail to homes or offices of prospective customers.

Many companies promote their businesses by mailing in bulk to the chosen market segment. Databases of prospects are maintained and customers are divided into target groups based on certain criteria. For example, families having College going children will be targeted for educational loan schemes. Unaddressed direct mail can also be sent to whole neighbourhoods.

Direct mailing is used by all types of organizations though it is more likely to be used by political parties wishing to garner maximum votes. Non-profit organizations also use this method a great deal.

The concept of direct mail has been criticised for causing environmental damage as a majority of unsolicited mail is never even opened by the receiver and is just a mere waste of precious paper. It would be more beneficial if the companies send direct mails only to carefully chosen prospects instead of mailing them to everyone.

II. Email Marketing:

A method of direct marketing which uses email as a means to communicate with its audience. This is a very popular way of contacting potential buyers because it is relatively inexpensive to design, create and send an email to thousands of people at a time. It also enables marketers to measure and control the marketing efforts easily.

Email marketing includes the following:

(a) Sending email to existing or previous customers to improve customer relationship and loyalty.

(b) Emailing a chosen target audience with the intent of acquiring new customers.

(c) Including advertisements of other companies in emails sent.

Online Tools Used for Email Marketing:

(i) Display Advertisements:

Interactive advertisements that the customers can click on to learn more about the company. These include static banners, pop ups, video and floating units.

(ii) Social Media Sites:

Marketers are increasingly making use of social networking sites like Twitter and Facebook for a two-way direct communication with customers.

(iii) Search Engine Optimisation (SEO):

Marketers use SEO to increase traffic to their site. Advertisers pay a lot to get prominent placement among listings in search engines whenever a potential customer enters a relevant search term. In this way advertisements are delivered to customers based upon their indicated search criteria.

III. Mobile Marketing:

It is the business of using mobile phones as a medium of marketing. It is a recent concept that has just begin to catch up over the past decade. Marketers connect with potential customers in an interactive manner through mobile devices such as mobile phones, iPhones, smartphones, etc. Types of mobile marketing:

(i) Short Message Service (SMS):

Companies send text messages to their customers known as SMS. It is a very popular method of advertising in some parts of the world. The usage of mobile phones is increasing in developing countries and SMS marketing has become the most commonly used technique in mobile marketing industry.

(ii) Multimedia Message Service (MMS):

Multimedia messages have elements like audio, video and images. Newer mobile phones are equipped with a colour screen and technology for receiving and sharing multimedia messages.

(iii) Mobile Banner Advertisements:

These are web advertisements that are specially designed to fit on a mobile phone screen and run on mobile content network.

(iv) Mobile Applications:

There are various applications that are embedded in mobile phones. Interactive advertisements may appear inside mobile applications.

(v) Location Based Services (Lbs):

Some mobile phone networks offer LBS to send custom information to mobile phone subscribers based on their current location.

IV. Telemarketing:

Telemarketing is one of the most common forms of direct marketing in which marketers contact customers by phone. Salespersons may personally call people and interact with them over the phone in order to make a sale or to get contacts of other prospects who might be interested. Telemarketing also includes recorded sales pitches that are played over the phone via automatic dialing.

Categories of Telemarketing:

(i) Sales- Persuading individuals to buy a product or service.

(ii) Lead generation- Calls made with the aim of gathering information.

(iii) Outbound- Prospective and existing customers are contacted directly.

(iv) Inbound- Receiving of incoming orders and requests for information.

Telemarketing has been criticized for being a disturbance to customers. This method is also associated with fraudulent and unethical practices like pyramid schemes and high pressure sales techniques.

V. Direct Selling:

In direct selling salesperson contact people personally, in a face to face manner in order to sell their products or services. The customers are contacted in their homes or offices, away from regular retail outlets. The salesperson may also give presentations and demonstrations of how the product works.

Direct selling may use multilevel marketing, i.e. the salesperson gets paid not only for making sales, but also for recruiting other salespersons like in case of Amway.

VI. Mail Order and Catalogue Marketing:

In mail order marketing, a catalogue is distributed to customers through postal service or the internet. Such catalogues contain a list of the goods available from the company. The prices, special offers (if any), and the procedure for payment are mentioned in the catalogue.

Probable buyers browse through the catalogues and place an order for a necessary product through a phone call or website and then the merchant delivers the goods to the customer. It is a convenient way of buying things as the products are generally delivered to the customer’s house address. The customer can also have the goods delivered as a gift to someone other than the buyer.

VII. Direct Response Television:

Direct marketing on television is done through infomercials, i.e. a 30-45 minutes programme that explains the features and usage of a product in detail. These infomercials ask the viewers to immediately call a given number or visit their website to place an order.

The buyers may be given an option of paying through credit card, online banking or cash on delivery. Television response marketing is a direct marketing format as the customers need to get in touch with the company directly and not through a retailer.


Types of Marketing – Green Marketing and e-Marketing

Marketing revolves round the needs of consumers. All marketing efforts are put to meet manifold needs of the customers. Consumer is the king in modern marketing concept. Consumer needs are shaped by culture, society, family, work group or the like. Any change in surroundings will affect the need and consumption pattern of consumer.

Recent time has been the era of change. Advent of technological innovations like internet has brought about radical change in marketing trends. Some of the important trends need special mention for the beginners.

Type # 1. Green Marketing:

a. On retail perspective green marketing is the marketing of products that are presumed to be environmentally safe. On social perspective it is the development and marketing of products designed to minimize negative effects on the physical environment or to improve its quality.

b. On environment perspective it is the efforts made by organizations to produce, promote, package, and reclaim products in a manner that is sensitive or responsive to ecological concerns. Green Marketing is also known as Environmental Marketing and Ecological Marketing.

c. The American Marketing Association (AMA) held the first workshop on “Ecological Marketing” in 1975. The proceeding of this workshop resulted in one of the first books on green marketing entitled “Ecological Marketing”.

d. Green Marketing, therefore, refers to holistic marketing concept wherein the production, marketing consumption and disposal of products and services happen in a manner that is less detrimental to the environment with growing awareness about sustainability.

It incorporates a broad range of activities including:

a. Product modification

b. Changes to the production process

c. Packaging changes

d. Modifying advertising

Importance of Green Marketing:

a. Green Marketing is inevitable in a market where resources are scarce and demands are infinite.

b. Green marketing will prove to be indispensable and advantageous, cost-wise too, in the long run.

c. People are concerned about the environment and are changing their behaviour pattern so as to be less hostile towards it.

d. Most of the consumers, both individual and industrial, are becoming more concerned about environment-friendly products.

e. As a result, green marketing has emerged, which aims at marketing sustainable and socially-responsible products and services.

Why is Green Marketing Chosen by Most Marketers?

Most of the companies are overturning into green marketing because of the following reasons:

1. Opportunity:

In India, a considerable percentage of urban consumers prefer environmental-friendly products. Therefore, green marketers have diverse and fairly sizeable segments to cater to.

2. Social Responsibility:

Many companies have started realizing that they must behave in an environment-friendly fashion. They believe both in achieving environmental objectives as well as profit related objectives.

3. Governmental Pressure:

Various regulations are framed by the government to protect consumers and the society at large. The Indian government too has developed a framework of legislations to reduce the production of harmful goods and by products.

4. Competitive Pressure:

Many companies take up green marketing to maintain their competitive edge.

5. Cost Reduction:

Reduction of harmful waste may lead to substantial cost savings. Firms develop symbiotic relationship whereby the waste generated by one company is used by another as a cost-effective raw material.

Benefits of Green Marketing:

a. It ensures sustained long-term growth along with profitability.

b. It saves money in the long run, thought initially the cost is more.

c. It helps companies market their products and services keeping the environment aspects in mind. It helps in accessing the new markets and enjoying competitive advantage.

d. Most of the employees also fell proud and responsible to be working for an environmental responsible company.

Type # 2. e-Marketing:

1. Very simply put, e-Marketing or electronic marketing refers to the application of marketing principles and techniques via electronic media and more specifically the Internet. The terms e- Marketing, Internet marketing and online marketing, are frequently interchanged, and can often be considered synonymous.

2. e-Marketing is the process of marketing a brand using the Internet. It includes both direct response marketing and indirect marketing elements and uses a range of technologies to help connect businesses to their customers.

3. e-Marketing encompasses all the activities a business conducts via the worldwide web with the aim of attracting new business, retaining current business and developing its brand identity.

Importance of e-Marketing:

a. When implemented correctly, the return on investment (ROI) from e-Marketing can far exceed that of traditional marketing strategies.

b. Whether a “bricks and mortar” business or a concern operating purely online, the Internet is a force that cannot be ignored. It can be a means to reach literally millions of people every year. It’s at the forefront of a redefinition of way businesses interact with their customers.

Benefits of e-Marketing over Traditional Marketing:

i. Reach:

The nature of the internet means businesses now have a truly global reach. While traditional media costs limit this kind of reach to huge multinationals, e-Marketing opens up new avenues for smaller businesses, on a much smaller budget, to access potential consumers from all over the world.

ii. Scope:

Internet marketing allows the marketer to reach consumers in a wide range of ways and enables them to offer a wide range of products and services. e-Marketing includes, among other things, information management, public relations, customer service and sales. With the range of new technologies becoming available all the time, this scope can only grow.

iii. Cheaper:

Email Marketing is significantly cheaper and faster than traditional mail, mainly because of high cost and time required in a traditional mail campaign for producing the artwork, printing, addressing and mailing.

iv. Interactivity:

Whereas traditional marketing is largely about getting a brand’s message out there, e-Marketing facilitates conversations between companies and consumers. With a two-way communication channel, companies can feed off of the responses of their consumers, making them more dynamic and adaptive.

v. Immediacy:

Internet marketing is able to, in ways never before imagined, provide an immediate impact. Effectively, Internet marketing makes business hours 24 hours per day, 7 days per week for every week of the year.

vi. Demographics and Targeting:

Generally speaking, the demographics of the Internet are a marketer’s dream. Internet users, considered as a group, have greater buying power and could perhaps be considered as a population group skewed towards the middle-classes.

vii. Adaptive and Closed Loop Marketing:

Closed Loop Marketing requires the constant measurement and analysis of the results of marketing initiatives. By continuously tracking the response and effectiveness of a campaign, the marketer can be far more dynamic in adapting to consumers’ wants and needs.


Types of Marketing – Internal Marketing, Interactive Marketing, External Marketing and Relationship Marketing

Type # 1. Internal Marketing:

The concept of internal marketing as propounded by Prof. Leonard L. Berry of “Texas A&M University” of U.S.A. presumes the bank employees as its ‘internal customers’ and jobs offered to them as products. So effort should be made to offer a product mix that satisfies the needs and wants of these internal customers.

The same marketing tools which are used to attract and retain customers (external) can gainfully be used to attract, retain and inspire the employees (internal customers), particularly the best among them.

The logic behind such type of thinking can be attributed to following facts. Customers buy products and services of the bank exchanging their financial resources. Similarly employees also buy jobs of the bank exchanging the human resource. As both are drawn from the same society the exchange process is found to be similar in many respects.

It may be argued that in Indian context, a customer may have a better and wider option to change banks but employees do not have such opportunity. In future, it is expected that the liberalized scenario may provide the best of the employees, with such opportunity. But one thing for sure is that it remains the discretion of the employee to give his best or not.

In a financial industry like banks the product differential and price competition is almost nil or the distinctiveness is difficult to maintain. The only area where a distinctiveness can be maintained is the quality of human resource. Further, banks provide services and services by their nature are inseparable from the provider.

In this context the bank employees who provide these services assume paramount importance. How far and to what extent the quality level of their performance would reach is solely the discretion of the employee. As a satisfied employee can deliver total satisfaction to a customer, it becomes important for banks to satisfy the needs and wants of its employees on priority basis.

These activities can be further reinforced by certain promotional activities directed at them. A highly motivated workforce is a common trait of all successful organizations. Though it is difficult to ascertain what precisely motivates employees, a clue can be taken from Abraham Mallow’s hierarchy of needs.

Presuming that the physiological needs of the bank employees have, by and large, been taken care of, greater emphasis should be laid on psychological and self-actualization needs such as: security, contribution to society, esteem and the need to reach one’s full potential, etc. It is necessary to create an organizational climate where superior and extra-ordinary contributions made by employees at various levels are noticed and acknowledged.

Advertising is a potent tool in making an employee aware, motivated, educated, and inspired. Though a poster at the branch with the headline such as “you never hear our people say that’s not my job” or “if you are not satisfied tell us, if satisfied tell others” are directed towards external customer. Yet, it is clearly meant for the internal customers too and will have tremendous impact on them.

Of course, before putting up a poster like that would need taking staff into confidence. It is needless to say that any advertising campaign which can originate from the staff themselves would have more credibility and acceptability. Or else it may be treated derisively and be counter-productive. Senior executives, in this regard, have a definite role to play.

Type # 2. Interactive Marketing (Moment of Truth):

Moment of truth means that this is the time and place the service provider has the opportunity to demonstrate to the customer the quality of its services. Quality of service is dependent on the quality of buyer/ seller interaction. This is the point, which may lead to creation of a customer or not.

Though, we may win him at that point of time, because of some other reasons, we may not retain him or he may not come to us again if that interaction is not satisfying for him to leave a lasting impact on him. We may have a beautiful marketing mix of product, price, place and promotion, which bring the customer to us.

We may still have a good internal marketing, which prepares a band of knowledgeable employees ready. But if we fail at this point all our effort so far will be futile. This is the reason, which makes interactive marketing so important.

Thus interactive marketing describes employee’s skill in handling customer contact and involves the following:

1. Employee

2. Process

3. Customer

Interactive Marketing:

It is the group of able and willing employees, which make the starting point of interactive marketing. They are to be aided by proper processes (systems and procedures) as suitable vehicles to render best customer service, which in turn will result in satisfied and loyal customers. Internal marketing provides the required employees orienting them for the job.

Type # 3. External Marketing:

The external marketing efforts are the traditional functions of marketing of the customers and make promises to the customer as to what to be delivered. Anything conveyed to the customer in any form before the delivery of service can be viewed as a part of external marketing function.

According to Zeithaml and Bitner, the customer’s expectation of the service can be derived from the following sources:

1. Past experience.

2. Corporate image.

3. Word of mouth communication.

Care should be taken to maintain credibility while setting the promise because a very high expectation may lead to a highly dissatisfied customer.

Type # 4. Relationship Marketing (RM):

RM is basically an offshoot of marketing function which emphasizes on customer retention and satisfaction. This aims at long-term relationship between buyer and seller with the goal of better services. According to Berry and Leonard (1983), relationship marketing can be applied when there are competitive product alternatives for customers to choose from; and when there is an ongoing and periodic desire for the product or service.

In the nutshell, we can say that relationship marketing is to build and maintain a base of committed customers who are profitable for the organization. Basic reason behind so much of stress on Relationship Marketing is that a long-term customer is less likely to switch over to other brand or product.

Also, long-term relationship with customers acts as free mouth publicity of the organization’s products and services. This not only helps in smoother interaction between employees and customers but also makes employees’ job easier.

Dawkins and Reichheld (1990) suggest that, relationship marketing focuses on four major activities – customer valuation, customer retention measurement, identifying reasons for defection and develop a corrective plan.

Christopher et al. (1991) look at relationship marketing as a “tool to turn current and new customers into regularly purchasing clients and then progressively move them through being strong supporters of the company and its products to finally being active and vocal advocates for the company”.

As mentioned in the book by Mohamed and Sagadecan (2002) an organization has to have a strategic approach towards relationship building programme. Such a strategy depends upon internal as well as external factors like nature of business, its size, and its market share, nature of product, product type, and volume of sale, geographic concentration, socio­economic status and life style of customers.

Some of the strategic initiatives towards implementation of relationship management programme, generally used in combination are: People, Process, Product, Organization (top management), service standards, concentration on competitors, customer analysis, cost analysis, buying patterns, customized services, attention to changing requirements of the customers, training to service providers, incentive for customers, total care programme and building switching barriers.

Both the stakeholders, i.e. customers as well as the firms are in win- win situation through relationship marketing.

Some of the benefits to customers are as follows:

i. Sense of confidence and trust in the supplier/service provider

ii. Sense of personal relationship and familiarity

iii. Special treatment by the suppliers/service providers

On the other hand, the firms also get some benefits out of this long- term relationship.

They are as follows:

i. Long-term relationship with the consumers

ii. Free mouth publicity through satisfied customers

iii. Increased level of comfort in the interaction between employees and customers

Any marketing related concept is incomplete without the mention of Phillip Kotler. In the view of Phillip Kotler, relationship marketing emphasizes on two important issues-optimize relationships with customers if you understand and manage relationships with other relevant stakeholders the tools and techniques used in marketing to customers, such as marketing planning and market segmentation, can also be used equally as effectively in managing non-customer relationships.

Relationship-based marketing involves another major activity i.e. estimating customer lifetime value which in turn aims at lifetime profitability.


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