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11.Price strategies

Competition-based pricing

Setting the price based upon prices of the similar competitor products.

Competitive pricing is based on three types of competitive product:

Products have lasting distinctiveness from competitor's product. Here we can assume

The product has low price elasticity.

The product has low cross elasticity.

The demand of the product will rise.

Products have perishable distinctiveness from competitor's product, assuming the

product features are medium distinctiveness.

Products have little distinctiveness from competitor's product. assuming that:

The product has high price elasticity.

The product has some cross elasticity.

No expectation that demand of the product will rise.

Cost-plus pricing

Cost-plus pricing is the simplest pricing method. The firm calculates the cost of producing the

product and adds on a percentage (profit) to that price to give the selling price. This method

although simple has two flaws; it takes no account of demand and there is no way of determining

if potential customers will purchase the product at the calculated price.

This appears in 2 forms, Full cost pricing which takes into consideration both variable and fixed

costs and adds a % markup. The other is Direct cost pricing which is variable costs plus a %

markup, the latter is only used in periods of high competition as this method usually leads to a

loss in the long run.

Creaming or skimming

Selling a product at a high price, sacrificing high sales to gain a high profit, therefore ‘skimming’

the market. Usually employed to reimburse the cost of investment of the original research into the

product: commonly used in electronic markets when a new range, such as DVD players, are

firstly dispatched into the market at a high price. This strategy is often used to target "early

adopters" of a product or service. These early adopters are relatively less price-sensitive becauseeither their need for the product is more than others or they understand the value of the product

better than others. In market skimming goods are sold at higher prices so that fewer sales are

needed to break even.

This strategy is employed only for a limited duration to recover most of investment made to build

the product. To gain further market share, a seller must use other pricing tactics such as

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Predatory pricing

Aggressive pricing intended to drive out competitors from a market. It is illegal in some places.

Contribution margin-based pricing

Contribution margin-based pricing maximizes the profit derived from an individual product, basedon the difference between the product's price and variable costs (the product's contribution

margin per unit), and on one’s assumptions regarding the relationship between the product’s

price and the number of units that can be sold at that price. The product's contribution to total firm

profit (i.e., to operating income) is maximized when a price is chosen that maximizes the

following: (contribution margin per unit) X (number of units sold)..

Psychological pricing

Pricing designed to have a positive psychological impact. For example, selling a product at $3.95

or $3.99, rather than $4.00.

Dynamic pricing

A flexible pricing mechanism made possible by advances in information technology, and

employed mostly by Internet based companies. By responding to market fluctuations or large

amounts of data gathered from customers - ranging from where they live to what they buy to how

much they have spent on past purchases - dynamic pricing allows online companies to adjust the

prices of identical goods to correspond to a customer’s willingness to pay. The airline industry is

often cited as a dynamic pricing success story. In fact, it employs the technique so artfully that

most of the passengers on any given airplane have paid different ticket prices for the same flight.

Price leadership

An observation made of oligopic business behavior in which one company, usually the dominant

competitor among several, leads the way in determining prices, the others soon following.

Target pricing

Pricing method whereby the selling price of a product is calculated to produce a particular rate of 

return on investment for a specific volume of production. The target pricing method is used most

often by public utilities, like electric and gas companies, and companies whose capital investment

is high, like automobile manufacturers.

Target pricing is not useful for companies whose capital investment is low because, according to

this formula, the selling price will be understated. Also the target pricing method is not keyed to

the demand for the product, and if the entire volume is not sold, a company might sustain an

overall budgetary loss on the product.

Absorption pricing

Method of pricing in which all costs are recovered. The price of the product includes the variable

cost of each item plus a proportionate amount of the fixed costs. A form of cost plus pricing

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High-low pricing

Method of pricing for an organization where the goods or services offered by the organization are

regularly priced higher than competitors, but through promotions, advertisements, and or 

coupons, lower prices are offered on key items. The lower promotional prices are targeted to

bring customers to the organization where the customer is offered the promotional product as wellas the regular higher priced products.[3]

Premium Decoy pricing

Method of pricing where an organization artificially sets one product price high, in order to boost

sales of a lower priced product.

Marginal-cost pricing

In business, the practice of setting the price of a product to equal the extra cost of producing an

extra unit of output. By this policy, a producer charges, for each product unit sold, only the

addition to total cost resulting from materials and direct labor. Businesses often set prices close tomarginal cost during periods of poor sales. If, for example, an item has a marginal cost of $1.00

and a normal selling price is $2.00, the firm selling the item might wish to lower the price to $1.10

if demand has waned. The business would choose this approach because the incremental profit

of 10 cents from the transaction is better than no sale at all.

Value Based pricing

Pricing a product based on the perceived value and not on any other factor. Pricing based on the

demand for a specific product would have a likely change in the market place.

Pay what you want pricing

Pay what you want is a pricing system where buyers pay any desired amount for a given

commodity, sometimes including zero. In some cases, a minimum (floor) price may be set, and/or 

a suggested price may be indicated as guidance for the buyer. The buyer can also select an

amount higher than the standard price for the commodity.

Giving buyers the freedom to pay what you want may seem to not make much sense for a seller,

but in some situations it can be very successful. While most uses of pay what you want have

been at the margins of the economy, or for special promotions, there are emerging efforts to

expand its utility to broader and more regular use.

Freemium pricing

Freemium is a business model that works by offering a product or service free of charge (typically

digital offerings such as software, content, games, web services or other) while charging a

premium for advanced features, functionality, or related products and services. The word

"freemium" is a portmanteau combining the two aspects of the business model: "free" and

"premium". It has become a highly popular model, with notable success.

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12.Focus groupA focus group is a form of qualitative research in which a group of people are asked about their perceptions, opinions, beliefs and attitudes towards a product, service, concept, advertisement,

idea, or packaging.[1] Questions are asked in an interactive group setting where participants arefree to talk with other group members.

In marketing

In the world of marketing, focus groups are seen as an important tool for acquiring feedback

regarding new products, as well as various topics. In particular, focus groups allow companies

wishing to develop, package, name, or test market a new product, to discuss, view, and/or test

the new product before it is made available to the public. This can provide invaluable information

about the potential market acceptance of the product.

Focus Group is an interview, conducted by a trained moderator among a small group of 

respondents. The interview is conducted in an unstructured and natural way where respondents

are free to give views from any aspect.

Benefits/strengths of focus group discussions

Group discussion produces data and insights that would be less accessible without

interaction found in a group setting—listening to others’ verbalized experiences stimulates

memories, ideas, and experiences in participants. This is also known as the group effect

where group members engage in “a kind of ‘chaining’ or ‘cascading’ effect; talk links to, or 

tumbles out of, the topics and expressions preceding it” (Lindlof & Taylor, 2002, p. 182) [6]

Group members discover a common language to describe similar experiences. This

enables the capture of a form of “native language” or “vernacular speech” to understand the

situation

Focus groups also provide an opportunity for disclosure among similar others in a settingwhere participants are validated. For example, in the context of workplace bullying, targeted

employees often find themselves in situations where they experience lack of voice and

feelings of isolation. Use of focus groups to study workplace bullying therefore serve as both

an efficacious and ethical venue for collecting data (see, e.g., Tracy, Lutgen-Sandvik, &

Alberts, 2006) [7]

15.Advertising 

is a form of communication used to persuade an audience (viewers, readers or listeners) to take

some action with respect to products, ideas, or services. Most commonly, the desired result is to

drive consumer behavior with respect to a commercial offering, although political and ideological

advertising is also common. Advertising messages are usually paid for by sponsors and viewed

via various traditional media; including mass media such as newspaper , magazines, television

commercial, radio advertisement, outdoor advertising or direct mail; or new media such

as websites and text messages.

Commercial advertisers often seek to generate increased consumption of 

their products or services through "Branding," which involves the repetition of an image or product

name in an effort to associate certain qualities with the brand in the minds of consumers. Non-

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commercialadvertisers who spend money to advertise items other than a consumer product or 

service include political parties, interest groups, religious organizations and governmental

agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service

announcement (PSA).

Modern advertising developed with the rise of mass production in the late 19th and early 20th

centuries.

Public service advertising

The advertising techniques used to promote commercial goods and services can be used to

inform, educate and motivate the public about non-commercial issues, such as HIV/AIDS, political

ideology, energy conservation and deforestation.

Advertising, in its non-commercial guise, is a powerful educational tool capable of reaching and

motivating large audiences. "Advertising justifies its existence when used in the public interest—it

is much too powerful a tool to use solely for commercial purposes." Attributed to Howard

Gossage by David Ogilvy.

Public service advertising, non-commercial advertising, public interest advertising, cause

marketing, and social marketing are different terms for (or aspects of) the use of sophisticated

advertising and marketing communications techniques (generally associated with commercial

enterprise) on behalf of non-commercial, public interest issues and initiatives.

In the United States, the granting of television and radio licenses by the FCC is contingent upon

the station broadcasting a certain amount of public service advertising. To meet these

requirements, many broadcast stations in America air the bulk of their required public service

announcements during the late night or early morning when the smallest percentage of viewers

are watching, leaving more day and prime time commercial slots available for high-paying

advertisers.

Public service advertising reached its height during World Wars I and II under the direction of 

more than one government. During WWII President Roosevelt commissioned the creation of The

War Advertising Council (now known as the Ad Council) which is the nation's largest developer of 

PSA campaigns on behalf of government agencies and non-profit organizations, including the

longest-running PSA campaign, Smokey Bear.

Types of advertising

Virtually any medium can be used for advertising. Commercial advertising media can include wall

paintings, billboards, street furniturecomponents, printed flyers and rack cards, radio, cinema and

television adverts, web banners, mobile telephone screens, shopping carts,

webpopups, skywriting, bus stop benches, human billboards, magazines, newspapers, towncriers, sides of buses, banners attached to or sides of airplanes ("logojets"), in-flight

advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof mounts

and passenger screens, musical stage shows, subway platforms and trains, elastic bands on

disposable diapers,doors of bathroom stalls,stickers on apples in supermarkets, shopping cart

handles (grabertising), the opening section of streaming audio and video, posters, and the backs

of event tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver their 

message through a medium is advertising.

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Television advertising / Music in advertising

The TV commercial is generally considered the most effective mass-market advertising

format, as is reflected by the high prices TV networks charge for 

commercial airtime during popular TV events. The annual Super Bowl football game in

the United States is known as the most prominent advertising event on television. The

average cost of a single thirty-second TV spot during this game has reached US$3

million (as of 2009). The majority of television commercials feature a song or  jingle that

listeners soon relate to the product. Virtual advertisements may be inserted into regular 

television programming through computer graphics. It is typically inserted into otherwise

blank backdrops[13] or used to replace local billboards that are not relevant to the remote

broadcast audience.[14] More controversially, virtual billboards may be inserted into the

background[15] where none exist in real-life. This technique is especially used in televised

sporting events.[16][17] Virtual product placement is also possible.[18][19]

Infomercials

An infomercial is a long-format television commercial, typically five minutes or longer. The

word "infomercial" combining the words "information" & "commercial". The main objective

in an infomercial is to create an impulse purchase, so that the consumer sees the

presentation and then immediately buys the product through the advertised toll-free

telephone number or website. Infomercials describe, display, and often demonstrate

products and their features, and commonly have testimonials from consumers

and industry professionals.

Radio advertising

Radio advertising is a form of advertising via the medium of radio. Radio

advertisements are broadcast as radio waves to the air from a transmitter to an antenna

and a thus to a receiving device. Airtime is purchased from a station or network in

exchange for airing the commercials. While radio has the limitation of being restricted to

sound, proponents of radio advertising often cite this as an advantage. Radio is an

expanding medium that can be found not only on air, but also online. According to

Arbitron, radio has approximately 241.6 million weekly listeners, or more than 93 percent

of the U.S. population.

Online advertising

Online advertising is a form of promotion that uses the Internet and World Wide Web for 

the expressed purpose of delivering marketingmessages to attract customers. Online ads

are delivered by an ad server . Examples of online advertising include contextual ads that

appear on search engine results pages, banner ads, in text ads, Rich Media Ads, Social

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network advertising, online classified advertising,advertising networks and e-mail

marketing, including e-mail spam.

Product placements

Covert advertising, also known as guerrilla advertising, is when a product or brand is

embedded in entertainment and media. For example, in a film, the main character can

use an item or other of a definite brand, as in the movie Minority Report , where Tom

Cruise's character John Anderton owns a phone with the Nokia logo clearly written in the

top corner, or his watch engraved with the Bulgari logo. Another example of advertising in

film is in I, Robot , where main character played by Will Smith mentions

his Converse shoes several times, calling them "classics," because the film is set far in

the future. I, Robot and Spaceballs also showcase futuristic cars with

the Audi andMercedes-Benz  logos clearly displayed on the front of the

vehicles. Cadillac chose to advertise in the movie The Matrix Reloaded , which as a result

contained many scenes in which Cadillac cars were used. Similarly, product placement

for Omega Watches, Ford, VAIO, BMWand Aston Martin cars are featured in

recent James Bond films, most notably Casino Royale. In "Fantastic Four: Rise of the

Silver Surfer ", the main transport vehicle shows a large Dodge logo on the front. Blade

Runner includes some of the most obvious product placement; the whole film stops to

show a Coca-Cola billboard.

Press advertising

Press advertising describes advertising in a printed medium such as

a newspaper, magazine, or trade journal. This encompasses everything from media with

a very broad readership base, such as a major national newspaper or magazine, to more

narrowly targeted media such as local newspapers and trade journals on very specialized

topics. A form of press advertising is classified advertising, which allows private

individuals or companies to purchase a small, narrowly targeted ad for a low fee

advertising a product or service. Another form of press advertising is the Display Ad,

which is a larger ad (can include art) that typically run in an article section of a

newspaper.

Billboard advertising

Billboards are large structures located in public places which display advertisements to

passing pedestrians and motorists. Most often, they are located on main roads with a

large amount of passing motor and pedestrian traffic; however, they can be placed in any

location with large amounts of viewers, such as on mass transit vehicles and in stations,

in shopping malls or office buildings, and in stadiums.

Mobile billboard advertising

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Mobile billboards are generally vehicle mounted billboards or digital screens. These can

be on dedicated vehicles built solely for carrying advertisements along routes preselected

by clients, they can also be specially equipped cargo trucks or, in some cases, large

banners strewn from planes. The billboards are often lighted; some being backlit, and

others employing spotlights. Some billboard displays are static, while others change; for 

example, continuously or periodically rotating among a set of advertisements. Mobile

displays are used for various situations in metropolitan areas throughout the world,

including: Target advertising, One-day, and long-term campaigns, Conventions, Sporting

events, Store openings and similar promotional events, and Big advertisements from

smaller companies.

In-store advertising

In-store advertising is any advertisement placed in a retail store. It includes placement of 

a product in visible locations in a store, such as at eye level, at the ends of aisles and

near checkout counters (aka POP—Point Of Purchase display), eye-catching displays

promoting a specific product, and advertisements in such places as shopping carts and

in-store video displays.

Coffee cup advertising

Coffee cup advertising is any advertisement placed upon a coffee cup that is distributed

out of an office, café, or drive-through coffee shop. This form of advertising was first

popularized in Australia, and has begun growing in popularity in the United States, India,

and parts of the Middle East.[citation needed ]

Street advertising

This type of advertising first came to prominence in the UK by Street Advertising Services

to create outdoor advertising on street furniture and pavements. Working with products

such as Reverse Graffiti, air dancer's and 3D pavement advertising, the media became

an affordable and effective tool for getting brand messages out into public spaces.

Celebrity branding

This type of advertising focuses upon using celebrity power, fame, money, popularity to

gain recognition for their products and promote specific stores or products. Advertisers

often advertise their products, for example, when celebrities share their favorite products

or wear clothes by specific brands or designers. Celebrities are often involved in

advertising campaigns such as television or print adverts to advertise specific or general

products. The use of celebrities to endorse a brand can have its downsides, however.

One mistake by a celebrity can be detrimental to the public relations of a brand. For 

example, following his performance of eight gold medals at the 2008 Olympic Games in

Beijing, China, swimmer Michael Phelps' contract with Kellogg's was terminated, as

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Consumer behaviour is the study of when, why, how, and where people do or do not buy

a product. It blends elements from psychology,sociology, social anthropology and economics. It

attempts to understand the buyer decision making process, both individually and in groups. It

studies characteristics of individual consumers such as demographics and behavioural variables

in an attempt to understand people's wants. It also tries to assess influences on

the consumer from groups such as family, friends, reference groups, and society in general.

Customer behaviour study is based on consumer buying behaviour, with the customer playing the

three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for 

customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of 

marketing through the re-affirmation of the importance of the customer or buyer. A greater 

importance is also placed on consumer retention, customer relationship management,

personalisation, customisation and one-to-one marketing. Social functions can be categorized

into social choice and welfare functions.

19.Direct marketing

Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofitsto communicate straight to the customer, with advertising techniques such as mobile messaging,

email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional

letters, and outdoor advertising.

Direct marketing messages emphasize a focus on the customer, data, and accountability.

Characteristics that distinguish direct marketing are:

1. Marketing messages are addressed directly to customers. Direct marketing relies

on being able to address the members of a target market. Addressability comes in a

variety of forms including email addresses, mobile phone numbers, Web browser 

cookies, fax numbers and United States and international postal addresses.2. Direct marketing seeks to drive a specific "call to action." For example, an

advertisement may ask the prospect to call a free phonenumber or click on a link to a

website.

3. Direct marketing emphasizes trackable, measurable responses from customers

— regardless of medium.

Direct marketing is practiced by businesses of all sizes — from the smallest start-up to the

leaders on the Fortune 500. A well-executed direct advertising campaign can prove a positive

return on investment by showing how many potential customers responded to a clear call-to-

action. General advertising eschews calls-for-action in favor of messages that try to build

prospects’ emotional awareness or engagement with a brand. Even well-designed generaladvertisements rarely can prove their impact on the organization’s bottom line.

Direct Marketing Channels

Any medium that can be used to deliver a communication to a customer can be employed in

direct marketing, including:

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[edit]Email Marketing

Sending marketing messages through email is one of the most widely used direct-marketing

methods. According to one study,[12] email is used by 94% of marketers, while 86% use direct

mail. One reason for email marketing's popularity is that it is relatively inexpensive to design, test,

and send an email message. It also allows marketers to deliver messages around the clock, and

to accurately measure responses.

[edit]Online Tools

With the expansion of digital technology and tools, direct marketing is increasingly taking place

through online channels. Most online advertising is delivered to a focused group of customers

and has a trackable response.

Display Ads are interactive ads that appear on the Web next to content on Web pages

or Web services. Formats include static banners, pop ups, videos, and floating units.

Customers can click on the ad to respond directly to the message or to find more detailed

information. According to research by eMarketer, expenditures on online display ads rose

24.5% between 2010 and 2011. [13]

Search: 49% of US spending on Internet ads goes to search, in which advertisers pay for 

prominent placement among listings in search engines whenever a potential customer enters

a relevant search term, allowing ads to be delivered to customers based upon their already-

indicated search criteria. [14] This paid placement industry generates more than $10 billion

dollars for search companies. Marketers also use search engine optimization to drive traffic to

their sites.

Social Media Sites, such as Facebook and Twitter, also provide opportunities for direct

marketers to communicate directly with customers by creating content to which customerscan respond.

[edit]Mobile

Through mobile marketing, marketers engage with prospective customers and donors in an

interactive manner through a mobile device or network, such as a cellphone, smartphone, or 

tablet. Types of mobile marketing messages include: SMS: (short message service) — marketing

communications are sent in the form of text messages, also known as texting. MMS:(multi-media

message service) — These messages use elements such as images, video, and audio; Mobile

Applications: Smartphone-based mobile apps contain several types of messages. Push

Notifications are direct messages sent to a user either automatically or as part of a campaign.

They include transactional, marketing, geo-based, and more. Rich Push Notifications are full

HTML Push Notifications. Mobile apps also contain Interactive ads that appear inside the mobile

application or app; Location-Based Marketing: marketing messages delivered directly to a

mobile device based on the user's location; QR Codes (quick-response barcodes): This is a type

of 2D barcode with an encoded link that can be accessed from a smartphone. This technology is

increasingly being used for everything from special offers to product information. Mobile Banner 

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Ads: Like standard banner ads for desktop Web pages but smaller to fit on mobile screens and

run on the mobile content network

[edit]Direct Mail

Main article: Advertising mail 

See also: Direct mail fundraising The term "direct mail" is used to refer to communications sent to potential customers or donors

via the postal service and other delivery services. Direct mail is sent to customers based on

criteria such as age, income, location, profession, buying pattern, etc.

Direct mail includes advertising circulars, catalogs, free-trial CDs, pre-approved credit card

applications, and other unsolicited merchandising invitations delivered by mail to homes and

businesses. Bulk mailings are a particularly popular method of promotion for businesses

operating in the financial services, home computer, and travel and tourism industries.

In many developed countries, direct mail represents such a significant amount of the total volume

of mail that special rate classes have been established. In the United States and United Kingdom, 

for example, there are bulk mail rates that enable marketers to send mail at rates that aresubstantially lower than regular first-class rates. In order to qualify for these rates, marketers must

format and sort the mail in particular ways – which reduces the handling (and therefore costs)

required by the postal service. In the US, marketers send over 90 billion pieces of direct mail per 

year [15]

Advertisers often refine direct mail practices into targeted mailing, in which mail is sent out

following database analysis to select recipients considered most likely to respond positively. For 

example, a person who has demonstrated an interest in golf may receive direct mail for golf-

related products or perhaps for goods and services that are appropriate for golfers. This use of 

database analysis is a type of database marketing. The United States Postal Service calls this

form of mail "advertising mail" (admail for short).

[edit]Telemarketing

Another common form of direct marketing is telemarketing, in which marketers contact customers

by phone. The primary benefit to businesses is increased lead generation, which helps

businesses increase sales volume and customer base. The most successful telemarketing

service providers focus on generating more "qualified" leads that have a higher probability of 

getting converted into actual sales.

The National Do Not Call Registry was created in 2003 to offer consumers a choice whether to

receive telemarketing calls at home. The FTC created the National Do Not Call Registry after a

comprehensive review of the Telemarketing Sales Rule (TSR).[16] The do-not-call provisions of the

TSR cover any plan, program, or campaign to sell goods or services through interstate phone

calls. The provisions do not cover calls from political organizations, charities, telephone

surveyors, or companies with which a customer has an existing business relationship. [17]

Canada has its own National Do Not Call List (DNCL). In other countries it is voluntary, such as

the New Zealand Name Removal Service.

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form of direct marketing, since responses are in the form of calls to telephone numbers given on-

air. This allows marketers to reasonably conclude that the calls are due to a particular campaign,

and enables them to obtain customers' phone numbers as targets for telemarketing. One of the

most famous DRTV commercials was for Ginsu Knives by Ginsu Products, Inc. of RI. Several

aspects of ad, such as its use of adding items to the offer and the guarantee of satisfaction were

much copied, and came to be considered part of the formula for success with short-form direct-response TV ads (DRTV)

[edit]Direct Response Radio

In direct response radio, ads contain a call to action with a specific tracking mechanism. Often,

this tracking mechanism is a "call now" prompt with a toll-free phone number or a unique Web

URL. Results of the ad can be tracked in terms of calls, orders, customers, leads, sales, revenue,

and profits that result from the airing of those ads.

[edit]Insert Media

Another form of direct marketing, insert media are marketing materials that are inserted into other 

communications, such as a catalog, newspaper, magazine, package, or bill. Coop or shared mail,where marketing offers from several companies are delivered via a single envelope, is also

considered insert media.

[edit]Out-of-Home

Out of home direct marketing refers to a wide array of media designed to reach the consumer 

outside the home, including transit, bus shelters, bus benches, aerials, airports, in-flight, in-store,

movies, college campus/high schools, hotels, shopping malls, sport facilities, stadiums, taxis —

that contain a call-to-action for the customer to respond.

[edit]Direct Response Magazines and Newspapers

Magazine and newspaper ads often include a direct response call-to-action, such as a toll-freenumber, a coupon redeemable at a brick-and-mortar store, or a QR code that can be scanned by

a mobile device — these methods are all forms of direct marketing, because they elicit a direct

and measurable action from the customer.

[edit]Direct Selling

Direct selling is the sale of products by face-to-face contact with the customer, either by having

salespeople approach potential customers in person, or through indirect means such

asTupperware parties.

[edit]Grassroots/Community Marketing

The door-to-door distribution of flyers and leaflets within a local community is a business-to-consumer form of direct marketing used extensively by restaurants, fast food companies, and

many other business focusing on a local catchment. Similar to direct mail marketing, this method

is targeted purely by area and community, and costs a fraction of the amount of a mailshot, since

it is not necessary to purchase stamps, envelopes, or address lists with the names of home

occupants.

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 17.Distribution (business)Product distribution (or place) is one of the four elements of the marketing mix. An organization

or set of organizations (go-between) involved in the process of making a product or service

available for use or consumption by a consumer or business user.

Managerial concerns

The channel decision is very important. In theory at least, there is a form of trade-off: the cost of 

using intermediaries to achieve wider distribution is supposedly lower. Indeed, most consumer 

goods manufacturers could never justify the cost of selling direct to their consumers, except by

mail order. Many suppliers seem to assume that once their product has been sold into the

channel, into the beginning of the distribution chain, their job is finished. Yet that distribution chain

is merely assuming a part of the supplier's responsibility; and, if they have any aspirations to be

market-oriented, their job should really be extended to managing all the processes involved in

that chain, until the product or service arrives with the end-user. This may involve a number of 

decisions on the part of the supplier:

Channel membership

Channel motivation

Monitoring and managing channels

[edit]Type of marketing channel

1. Intensive distribution - Where the majority of resellers stock the 'product' with

convenience products, for example, and particularly the brand leaders in

consumer goods markets (price competition may be evident).

2. Selective distribution - This is the normal pattern (in both consumer and industrialmarkets) where 'suitable' resellers stock the product.In this case retailers can keep the

competitors products in their outlets e.g. furniture etc.

3. Exclusive distribution - Only lam-bard specially selected resellers or authorized

dealers (typically only one per geographical area) are allowed to sell the 'product'.

In this retailers are restricted to keep only one manufacturers products e.g. exclusive outlets of 

cars,apparels and jewellery etc. Marketing plans

[edit]Channel motivation

It is difficult enough to motivate direct employees to provide the necessary sales and service

support. Motivating the owners and employees of the independent organizations in a distributionchain requires even greater effort. There are many devices for achieving such motivation.

Perhaps the most usual is `incentive': the supplier offers a better margin, to tempt the owners in

the channel to push the product rather than its competitors; or a compensation is offered to the

distributors' sales personnel, so that they are tempted to push the product. Julian Dent defines

this incentive as a Channel Value Proposition or business case, with which the supplier sells the

channel member on the commercial merits of doing business together. He describes this as

selling business models not products.

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[edit]Monitoring and managing channels

In much the same way that the organization's own sales and distribution activities need to be

monitored and managed, so will those of the distribution chain.

In practice, many organizations use a mix of different channels; in particular, they may

complement a direct sales-force, calling on the larger accounts, with agents, covering the smaller customers and prospects. These channels show marketing strategies of an organization.

Effective management of distribution channel requires making and implementing decision in

these areas.

14.Brand

Brand is the personality that identifies a product, service or company (name, term, sign, symbol,or design, or combination of them) and how it relates to key constituencies: customers, staff,

partners, investors etc.

Some people distinguish the psychological aspect, brand associations like thoughts, feelings,

perceptions, images, experiences, beliefs, attitudes, and so on that become linked to the brand,

of a brand from the experiential aspect.

The experiential aspect consists of the sum of all points of contact with the brand and is known as

the brand experience. The brand experience is a brand's action perceived by a person. The

psychological aspect, sometimes referred to as the brand image, is a symbolic construct created

within the minds of people, consisting of all the information and expectations associated with a

product, service or the company(ies) providing them.

People engaged in branding seek to develop or align the expectations behind the brand

experience, creating the impression that a brand associated with a product or service has certain

qualities or characteristics that make it special or unique. A brand is therefore one of the most

valuable elements in an advertising theme, as it demonstrates what the brand owner is able to

offer in the marketplace. The art of creating and maintaining a brand is called brand

management. Orientation of the whole organization towards its brand is called brand orientation. 

The brand orientation is developed in responsiveness to market intelligence.

Careful brand management seeks to make the product or services relevant to the target

audience. Brands should be seen as more than the difference between the actual cost of a

product and its selling price - they represent the sum of all valuable qualities of a product to theconsumer.

A brand which is widely known in the marketplace acquires brand recognition. When brand

recognition builds up to a point where a brand enjoys a critical mass of positive sentiment in the

marketplace, it is said to have achieved brand franchise. Brand recognition is most successful

when people can state a brand without being explicitly exposed to the company's name, but

rather through visual signifiers like logos, slogan's, and colors.[6] For example, Disney has been

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