Misplaced Pages

#726273

89-593: The success of word-of-mouth marketing depends heavily on the nature of the loyalty rewards used. When companies utilize poor incentives to motivate consumers or agents to spread positive word of mouth about products or brands, the campaigns backfire. In the early 1970s, psychologist George Silverman pioneered word-of-mouth marketing by creating " teleconferenced peer influence groups " aimed at engaging physicians in discussions concerning new pharmaceutical products. Through his conduction of these focus groups, Silverman noted that physicians with positive experiences regarding

178-458: A barcode or magstripe to more easily allow for scanning, although some are chip cards or proximity cards . U.S. supermarkets often issue two copies of the card: one credit-card sized and one that fits on a keychain, in addition to providing access to the card via a mobile app, website. As of 2024, most programs in the United States offer a digital version of the loyalty card, accessed via

267-400: A 10% discount off most merchandise. There is also a free tier which does not offer such discounts but does allow members to collect virtual "stamps" (i.e. loyalty points). Depending on the program, rewards may take the form of: In addition to rewards, loyalty cards were may also be used identify consumers for benefits and other services, e.g.: Programs with cashback features give customers

356-437: A firm's products or services to target consumers in a cost efficient manner. The four core marketing activities include: product, price, place and promotion. The marketing mix is the combination of all of the factors at the command of a marketing manager to satisfy the target market. The elements of the marketing mix are: Product – the item or service that is being offered, through its features and consumer benefits and how it

445-399: A firm/ company focuses on a particular aspect or group of consumers to deliver their product and marketing to. Niche marketing, is also primarily known as concentrated marketing, which means that firms are using all their resources and skills on one particular niche. Niche marketing has become one of the most successful marketing strategies for many firms as it identifies key resources and gives

534-465: A given customer's favorite brand of beer, or whether they are a vegetarian. As of the mid-2020s, loyalty program trends include: Loyalty programs are a means of implementing a type of what economists call a two-part tariff . Co-operative Membership: the Co-op Group offers a 2% (previously 5%) refund to members on Co-op branded products with 2% also going to the cardholder's nominated charity. This

623-497: A loyalty program (even with a fake or anonymous card) funds activities that violate privacy. Consumers have also expressed concern about the integration of RFID technology into loyalty-card systems. One may view loyalty and credit-card reward-plans as modern-day examples of kickbacks . Employees who need to buy something (such as an airline flight or a hotel room) for a business trip , but who have discretion to decide which airline or hotel chain to use, have an incentive to choose

712-426: A market plan is when a firms marketing team evaluates the firms current condition, what niches the company would want to target and any potential competition. A market plan can consist of elements such as, target market, consumer interests, and resources; it must be specific and key to that group of consumers as that is the speciality of niche marketing. Focus Your Marketing Program: Focusing your marketing program

801-442: A marketing mix suitable for the needs and preferences of that group. Target marketing goes against the grain of mass marketing. It involves identifying and selecting specific segments for special attention. Targeting, or the selection of a target market, is just one of the many decisions made by marketers and business analysts during the segmentation process. Examples of target markets used in practice include: Selection of

890-448: A mobile app to present their loyalty account number, although criticized for being unfriendly to people without smartphones including many elderly people, benefits the merchant in a number of ways. It lets them present special offers to the customer (or even push them via push notifications ), tailor customer experience to the individual consumer, and understand customer behavior better, including their purchasing amounts and patterns. At

979-496: A mobile app, and often customers can scan a QR or bar code from the app at the physical point of sale. Some programs now offer digital cards only or only exceptionally, such as Marks and Spencer 's "Sparks" program in the UK launched in 2020 which no longer issues physical cards except upon special request. American Airlines no longer sends membership kits to new members of its frequent flyer program. Encouraging or forcing customers to use

SECTION 10

#1733085806727

1068-613: A more significant impact on purchase intentions compared to positive feedback, highlighting the delicate balance in managing brand reputation. Another issue arises when consumers perceive manipulation or hidden agendas behind word-of-mouth recommendations. Discovering that influencers have vested interests in promoting a product can lead to skepticism and negative shifts in attitude, ultimately affecting brand reputation negatively. Similarly, engineered word-of-mouth campaigns by internet-focused companies face scrutiny for their perceived artificiality and invasion of privacy, further complicating

1157-638: A number of different approaches have been used to select target markets. These include: Segmentation and targeting for international markets is a critical success factor in international expansion. Yet, the diversity of foreign markets in terms of their market attractiveness and risk profile, complicates the process of selecting which markets to enter and which consumers to target. Targeting decisions in international markets have an additional layer of complexity. An established stream of literature focussing on International Market Segmentation (IMS) suggests that international segmentation and targeting decisions employ

1246-456: A particular drug could influence skeptical peers, including a dissatisfied group of ex-prescribers who had negative experiences with the drug. The emergence of Web 2.0 brought about noteworthy changes in WOMM, with many web startups such as Facebook , YouTube , MySpace , and Digg incorporating buzz marketing into their platforms to leverage their social networks. This integration has amplified

1335-472: A physical point of sale, presenting a physical or digital card is not necessary at many U.S. merchants, if the customer enters the phone number associated with the account on a terminal or tells it to a cashier who enters it into the register. When purchasing online, customers usually must log in to the account on the merchant's website. However, when purchasing airline tickets from online travel agencies, customers can usually enter their airline loyalty number into

1424-493: A portion of the money that they have spent with a business (usually a defined percent which may be higher than usual during promotions). The "cash back" is rarely actually cash money, but rather takes the form of a transfer of the "cashback" amount to the customer's bank account. Examples in the U.S. include Rakuten Rewards , a coalition reward program, and many banks that give their clients cash back for using their debit cards to pay for various products and services. Depending on

1513-499: A product or brand. These insights can be used to inform the development of the positioning strategy. Firms typically develop a detailed positioning statement which includes the target market definition, the market need, the product name and category, the key benefit delivered and the basis of the product's differentiation from any competing alternatives. The communications strategy is the primary means by which businesses communicate their positioning statement to target audiences . Once

1602-614: A product or company does not have to be close to where its customer base is but instead they just have to make their product as available as possible. For maximum efficiency, distribution channels must identify where the target market are most likely to make purchases or access the product. Distribution (or place) may also need to consider the needs of special-interest segments such as the elderly or those who are confined to wheelchairs. For instance, businesses may need to provide ramps for wheelchair access or baby change rooms for mothers. Promotion refers to "the marketing communication used to make

1691-414: A psychographic segmentation might yield segments such as Young Singles, Traditional Families, Socially Awares and Conservatives. Identifying consumer demand and opportunity within these segments should assist the marketer to identify the most profitable segments. Although there are many different ways to segment a market, the most common bases used in practice are: During the market segmentation process,

1780-469: A significant growth trend compared to traditional advertising channels. Within this, word-of-mouth marketing expenditure increased by 14.2% in 2008, with 30% allotted to food and drink brands. In December 2014, the Journal of Advertising Research found that 75% of all consumer conversations about brands happen face-to-face with merely 15% happening over the phone and just 10% taking place online. According to

1869-491: A significant role in online WOM promotion, offline WOM is primarily driven by emotional factors. Word-of-mouth marketing plays a crucial role in amplifying the impact of an advertising campaign by effectively navigating consumers' defenses and encouraging discussions about a specific product. Marketers value WOMM for its ability to analyze personal networks, which are driven by genuine experiences rather than organizational motives. One notable advantage of word-of-mouth marketing

SECTION 20

#1733085806727

1958-664: A single-location business to large chains or membership in a coalition loyalty program. Industries include: The market approach has shifted from product-centric to a customer-centric one due to a highly competitive market and a wide array of services offered to customers, therefore, it's important that marketing strategies prioritize growing a sustainable business and increasing customer satisfaction. Almost all major U.S. casino chains also have loyalty cards, which offer members tier credits, reward credits, comps , and other perks based on card members' " theo " from gambling, various demographic data, and spend patterns on various purchases at

2047-440: A target market (or target markets) is part of the overall process known as S-T-P ( S egmentation → T argeting→ P ositioning ). Before a business can develop a positioning strategy, it must first segment the market and identify the target (or targets) for the positioning strategy. This allows the business to tailor its marketing activities with the needs, wants, aspirations and expectations of target customers in mind. This enables

2136-444: A two-stage process: Analysis carried out in the first stage focuses involves the collection of comparative information about different countries with a view to identifying the most valuable markets to enter. This is facilitated by the relatively wide data availability for macro-variables. Most government departments collect business census data as well as data for a broad range of economic and social indicators that can be used to gauge

2225-428: Is a subset of the total market for a product or service. The target market typically consists of consumers who exhibit similar characteristics (such as age, location, income or lifestyle) and are considered most likely to buy a business's market offerings or are likely to be the most profitable segments for the business to service by OCHOM Once the target market(s) have been identified, the business will normally tailor

2314-403: Is a term used in business that focuses on selling its products and services solely on a specific target market. Despite being attractive for small businesses, niche marketing is highly considered to be a difficult marketing strategy as businesses may need thorough and in-depth research to reach its specific target market in order to succeed. According to (Caragher, 2008), niche marketing is when

2403-406: Is a very broad market in terms of both its demographic composition and its needs, this market can be segmented to ascertain whether internal groups with different product needs can be identified. In other words, the market is looking for market-based opportunities that are a good match its current product offerings or whether new product/service offerings need to be devised for specific segments within

2492-421: Is for consumers to inform and caution potential buyers of a product out of genuine concern, not for personal gain. Termed "organic," this model occurs naturally when consumers choose to share their experiences with a specific brand or product. As research progressed, marketers recognized the importance of "influential consumers", leading to the adoption of the linear marketer influence model. This model introduced

2581-524: Is its reliance on personal recommendations, fostering trust and authenticity in consumers' perceptions. Positive feedback from trusted sources boost consumers' willingness to try a product or service, enhancing overall campaign effectiveness. Word-of-mouth marketing is not favored by everyone, particularly in today's digital landscape. Online platforms allow not only positive but also negative reviews to spread rapidly, potentially undermining brand perception and consumer attitudes. Negative word-of-mouth can have

2670-565: Is not as large as the primary market, but may have growth potential. Alternatively, the secondary target group might consist of a small number of purchasers that account for a relatively high proportion of sales volume perhaps due to purchase value, purchase frequency or loyalty. In terms of evaluating markets, three core considerations are essential: However, these considerations are somewhat subjective and call for high levels of managerial judgement. Accordingly, analysts have turned to more objective measures of segment attractiveness. Historically

2759-494: Is often a QR code . Some prominent examples are Austrian based mobile-pocket established in 2009, the US-based Punchd (discontinued from June 2013, ), which became part of Google in 2011. and an Australian-based loyalty card application called Stamp Me which incorporates iBeacon technology. Others, like Loopy Loyalty (HK), Loyalli (UK), Perka (US), and Whisqr Loyalty (CA), have offered similar programs. Passbook by Apple

Word-of-mouth marketing - Misplaced Pages Continue

2848-660: Is often a key goal of viral marketing , public relations efforts, and advertising campaigns on Web 2.0 platforms. This term encompasses both the strategic execution of marketing techniques and the resulting positive sentiment and goodwill generated. Products that generated strong marketing buzz upon their introduction include Harry Potter , the Volkswagen New Beetle , Pokémon , Beanie Babies , and The Blair Witch Project . These products successfully leveraged various marketing strategies to create widespread excitement and positive associations among consumers, highlighting

2937-400: Is one of the positive aspects of undifferentiated marketing. However, there are also negative aspects to mass marketing as not everyone thinks the same so it would be extremely difficult to get the same message across to a huge number of people (Ramya & Subasakthi). Differentiated marketing is a practice in which different messages are advertised to appeal to certain groups of people within

3026-406: Is only available in Co-op Group stores. It replaced the dividend benefit previously used. Other Co-op chains continue with the dividend scheme, e.g. Midcounties Co-operative. Many of these accept other Co-operative loyalty cards but generally without the same benefits. For instance Midcounties Co-operative accept Co-operative Group cards but there is no charity donation or cardholder refund. Flybuys

3115-399: Is positioned within the marketplace whether it be a high or low quality product. Price , is a reference to the sacrifices made by a consumer to acquire a product and may include both monetary and psychological costs such as the combination of the ticket price, payment methods and other associated acquisition costs. Place refers to the way that a product physically reaches the consumer – where

3204-421: Is relevant for the product or service and may include basic demographic descriptors, purchasing habits, disposition to spend, benefits-sought, brand preferences, loyalty behavior, usage frequency and any other information deemed relevant to the subject at hand. The segment profile assists in the decision-making process and has a number of specific benefits: After profiling all the market segments formed during

3293-416: Is that they generate data, which bring more repeat business and therefore increase sales. Application forms for cards usually entail agreements by the store concerning customer privacy, typically non-disclosure (by the store) of non-aggregate data about customers. The store uses aggregate data internally (and sometimes externally) as part of its marketing research . Over time the data can reveal, for example,

3382-422: Is the first attempt to standardize the format of mobile loyalty cards. With the introduction of host card emulation (HCE) and near field communication (NFC) technology for mobile applications, traditional contactless smart cards for prepaid and loyalty programs are emulated in a smartphone. Google Wallet adopted these technologies for mobile off-line payment applications. The major advantage of off-line over

3471-507: Is the largest loyalty program in both Australia and New Zealand . Loyalty programs have been described as a form of centralized virtual currency , one with unidirectional cash flow, since reward points can be exchanged into a good or service but not into cash. Evidence for the effectiveness of loyalty programs is controversial. Many companies are unsure whether and how to use customer loyalty programs profitably. Many programs (regardless of location, size, or industry) are run without

3560-434: Is used when a more affluent segment is the target, but a lower-priced strategy might be used when price-conscious consumers are the target. Price can also be used tactically, as a means to advertise, short stints of lower prices increase sales for a variety of reasons such as to shift product over-runs or out of season goods. Place refers to the availability of the product to the targeted customers (Riaz & Tanveer, n.d). So

3649-592: Is when employees are using marketing tools and skills to best of their abilities to maximise market awareness for the company. Niche marketing is not only used for remaining at a competitive advantage in the industry but is also used as a way to attract more consumers and enlarge their client database. By using these tools and skills the company is then able to implement their strategy consistently. Niche To Compete Against Larger Firms: Smaller and medium-sized firms are able to compete against niche marketing, as they are able to focus on one primary niche, which really helps

Word-of-mouth marketing - Misplaced Pages Continue

3738-599: Is where a firm evaluates multiple internal and external factors. Factors applied in the audit identify the company's weaknesses and strengths, company's current client base and current marketing techniques. This would then help determine which marketing approach would best fit their niche. There are 5 key aspects or steps, which are required to achieve successful niche marketing. 1: develop a marketing plan; 2: focus your marketing program; 3: niche to compete against larger firms; 4: niche based upon expertise; 5: develop niches through mergers. Develop A Marketing Plan: Developing

3827-482: The Journal of Consumer Psychology and Jonah Berger's book Contagious: Why Things Catch On , six key factors drive what people talk about and share. They are organized in an acronym called STEPPS, which stands for: Additionally, as mentioned by Berger, interest plays an essential role in driving word-of-mouth communication. Andy Sernovitz supports this theory, stating that, “nobody talks about boring companies, boring products, or boring ads,”. Study into developing

3916-638: The Net Promoter Score as a word-of-mouth marketing strategy, assessing the number of promoters recommending a brand to others. This tactic emphasizes the importance of positive customer experiences in driving organic word-of-mouth marketing. In October 2005, the advertising watchdog group Commercial Alert petitioned the United States Federal Trade Commission (FTC) to issue guidelines for paid word-of-mouth marketers, requiring them to disclose their relationship and compensation from

4005-463: The S-T-P process is market segmentation. In this phase of the planning process, the business identifies the market potential or the total available market (TAM). This is the total number of existing customers plus potential customers, and may also include important influencers. For example, the potential market or TAM for feminine sanitary products might be defined as all women aged 14–50 years. Given that this

4094-440: The United States do not offer any real value to their customers. Furthermore, commercial use of customers' personal data – collected as part of loyalty programs – has the potential for abuse; it is highly likely that consumer purchases are tracked and used for marketing research to increase the efficiency of marketing and advertising, which is one of the purposes of offering the loyalty card. For some customers, participating in

4183-458: The agency website and the agency will pass it onto the airline. Programs that feature points grant customers a certain number of points for each purchase, in the US often per $ 1 or $ 10 increment of spend. Once they have enough points, clients can redeem them for either: Programs with tiers define levels (such as silver, gold, and platinum levels) that customers are upgraded to when they spend enough with

4272-472: The appropriate metrics or target parameters. Some companies complain that loyalty programs discount goods to people who are buying goods anyway. Moreover, the expense of participating in these programs rarely generates a good return on investment. The Forte Consultancy Group regards loyalty programs as bribes . In the case of infrequent spenders, loyalty fees provide a means of subsidizing discounts. A 2015 study found that most supermarket loyalty cards in

4361-432: The attractiveness of various destinations. Positioning is the final step in the S-T-P planning approach (Segmentation→ Targeting → Positioning). Positioning refers to decisions about how to present the offer in a way that resonates with the target market. During the research and analysis carried out during the segmentation and targeting process, the marketer will have gained insights into what motivates consumers to purchase

4450-556: The business to use its marketing resources more efficiently, resulting in more cost and time efficient marketing efforts. It allows for a richer understanding of customers and therefore enables the creation of marketing strategies and tactics, such as product design, pricing and promotion, that will connect with customers' hearts and minds. Also, targeting makes it possible to collect more precise data about customer needs and behaviors and then analyze that information over time in order to refine market strategies effectively. The first step in

4539-438: The business's resources are allocated, while secondary markets are often smaller segments or less vital to a product's success. Selecting the "right" target market is a complex and difficult decision. However, a number of heuristics have been developed to assist with making this decision. A target market is a group of customers (individuals, households or organisations), for which an organisation designs, implements and maintains

SECTION 50

#1733085806727

4628-499: The casino, within the casino network, and with the casino's partners. Examples of such programs include Caesars Rewards (formerly called Total Rewards ) and MGM Resorts International 's Mlife. As of 2011 , some independent coffee shops in Boston, Toronto and London has set up experimental "disloyalty card" programs, which rewarded customers for visiting a variety of coffee shops. Loyalty programs' most important benefit to merchants

4717-619: The company whose product they promote. The FTC responded by committing to investigate cases where such relationships are undisclosed and could impact endorsements, pledging to take enforcement actions as necessary, including cease-and-desist orders, fines, or civil penalties. The Word of Mouth Marketing Association, a prominent US trade group representing numerous companies, has since adopted an ethics code prohibiting manufacturers from offering cash to consumers in exchange for recommendations or endorsements. In 2008, PQ Media stated that companies spent $ 1.54 billion on word-of-mouth marketing, indicating

4806-703: The concept of word-of-mouth marketing led to the emergence of various models underlying the word-of-mouth strategy. These models include the organic inter-consumer influence model, the linear marketer influence model, and the network coproduction model. The initial and most straightforward form of word-of-mouth marketing aligns with the Organic Inter-consumer Influence Model. In this model, organizations have no direct control over what consumers say about their products - it involves one consumer sharing their product reviews or customer service experiences with another. The primary motivation behind this model

4895-434: The consumer. Marketers have outlined five basic strategies to the segmentation and the identification of target markets: undifferentiated marketing or mass marketing , differentiated marketing, concentrated marketing (niche marketing) and micromarketing (hyper-segmentation). Undifferentiated marketing/Mass marketing is a method which is used to target as many people as possible to advertise one message that marketers want

4984-628: The customers for attention, acquisition, or consumption and satisfies some want or need." (Riaz & Tanveer (n.d); Goi (2011) and Muala & Qurneh (2012)). The product is the primary means of demonstrating how a company differentiates itself from competitive market offerings. The differences can include quality, reputation, product benefits, product features, brand name or packaging. Price provides customers with an objective measure of value.(Virvilaite et al., 2009; Nakhleh, 2012). Price can be an important signal of product quality. Prices can also attract specific market segments. For instance, premium pricing

5073-485: The dynamics of consumer trust and perception in marketing strategies. Loyalty program A loyalty program or a rewards program is a marketing strategy designed to encourage customers to continue to shop at or use the services of one or more businesses associated with the program. Loyalty programs may be either: Single-brand programs, such as Starbucks ) In 2020 McKinsey spoke of loyalty program "ecosystems". A loyalty program typically involves

5162-400: The event that customer needs across the entire market are relatively similar, then the business may decide to use an undifferentiated approach . On the other hand, when customer needs are different across segments, then a differentiated (i.e. targeted) approach is warranted. In certain circumstances, the segmentation analysis may reveal that none of the segments offer genuine opportunities and

5251-406: The firm may decide not to enter the market. When a marketer enters more than one market, the segments are often labeled the primary target market and the secondary target market. The primary market is the target market selected as the main focus of marketing activities and most of the firm's resources are allocated to the primary target. The secondary target market is likely to be a segment that

5340-450: The idea of influential customers initiating conversations with potential buyers regarding how a product benefits the consumer. It enables organizations to ensure that credible sources advocate for their brand and accurately present the value proposition to the target consumer . This can be achieved through targeted advertisements and promotions via reputable sources that review the product. Marketers found this model effective in mitigating

5429-423: The many different messages, it also requires a lot of resources to use this method. But investing all the time, money and resources into differentiated marketing can be worth it if done correctly, as the different messages can successfully reach the targeted group of people and successfully motivate the targeted group of people to follow the messages that are being advertised (Ramya & Subasakthi). Niche marketing

SECTION 60

#1733085806727

5518-461: The marketer a specific category to focus on and present information to. This allows companies to have a competitive advantage over other larger firms targeting the same group; as a result, it generates higher profit margins. Smaller firms usually implement this method, so that they are able to concentrate on one particular aspect and give full priority to that segment, which helps them compete with larger firms. Some specialities of niche marketing help

5607-427: The marketer's judgement, after carrying out basic research to identify those segments with the greatest potential for the business. Occasionally a business may select more than one segment as the focus of its activities, in which case, it would normally identify a primary target and a secondary target . Primary target markets are those market segments to which marketing efforts are primarily directed and where more of

5696-415: The marketing analyst will have developed detailed profiles for each segment formed. This profile typically describes the similarities between consumers within each segment and the differences between consumers across each of the segments. The primary use of the segment profile is to assess the extent to which a firm's offerings meet the needs of different segments. A profile will include all such information as

5785-409: The marketing mix (4 Ps) with the needs and expectations of the target in mind. This may involve carrying out additional consumer research in order to gain deep insights into the typical consumer's motivations, purchasing habits and media usage patterns. The choice of a suitable target market is one of the final steps in the market segmentation process. The choice of a target market relies heavily on

5874-418: The marketing team determine marketing programs and provide clear and specific establishments for marketing plans and goal setting. According to, (Hamlin, Knight and Cuthbert, 2015), niche marketing is usually when firms react to an existing situation. There are different ways for firms to identify their niche market, but the most common method applied for finding out a niche is by using a marketing audit. This

5963-505: The merchant(s), usually over a certain period of time such as a year. For example, Sephora gives 1 point for $ 1 spent. Once customers earn a specific number of points, they can enter a new level with higher discounts and exclusive products. In subscription-based programs, customers pay a fee to enjoy the program's benefits, for example Barnes and Noble bookstores charge members about 40 U.S. dollars per year (as of mid-2024) for its "Premium Membership and Rewards" program, which gives members

6052-443: The network coproduction model to employ word-of-mouth marketing in several ways: Marketing buzz , also known simply as "buzz", refers to the phenomenon in word-of-mouth marketing where consumers and users of a product or service contribute to amplifying the original marketing message. It can be described as a form of positive hype , excitement, or anticipation surrounding a product or service among consumers. Achieving positive "buzz"

6141-402: The niche to grow. Smaller firms can focus on finding out their clients problems within their niche and can then provide different marketing to appeal to consumer interest. Niche Based Upon Expertise: When new companies are formed, different people bring different forms of experience to the company. This is another form of niche marketing, known as niche based on expertise, where someone with

6230-485: The offer known to potential customers and persuade them to investigate it further". May comprise elements such as: advertising , PR , direct marketing and sales promotion . Target marketing allows the marketer or sales team to customize their message to the targeted group of consumers in a focused manner. Research has shown that racial similarity, role congruence, labeling intensity of ethnic identification, shared knowledge and ethnic salience all promote positive effects on

6319-434: The online system is that the user's smartphone does not have to be online, and the transaction is fast. In addition, multiple emulated cards can be stored in a smartphone to support multi-merchant loyalty programs. Consequently, the user does not need to carry many physical cards anymore. Today, such loyalty programs cover most types of commerce, each having varying features and rewards schemes, and range from programs of

6408-415: The operator of a particular program setting up an account for a customer of a business associated with the scheme, and then issue to the customer a loyalty card (variously called rewards card , points card , advantage card, club card, or some other name) which may be a plastic or paper card, visually similar to a credit card , that identifies the cardholder as a participant in the program. Cards may have

6497-564: The overall market. Markets generally fall into two broad types, namely consumer markets and business markets . A consumer market consists of individuals or households who purchase goods for private consumption and do not intend to resell those goods for a profit. A business market consists of individuals or organisations who purchase goods for one of three main purposes; (a) for resale; (b) for use in producing other goods or services and; (c) for general use in daily business operations. Approaches to segmentation will vary depending on whether

6586-402: The payment method that provides the most cash-back , credit-card rewards or loyalty points instead of minimizing costs for their employer. Target consumer A target market , also known as serviceable obtainable market ( SOM ), is a group of customers within a business 's serviceable available market at which a business aims its marketing efforts and resources. A target market

6675-818: The power and impact of generating effective marketing buzz. Viral marketing and viral advertising are buzzwords referring to marketing techniques that use pre-existing social networks to boost brand awareness or achieve marketing goals like increased product sales through self-replicating viral processes, analogous to the spread of a virus. These methods can be amplified by word-of-mouth or enhanced through Internet network effects. Viral campaigns can manifest as various content formats such as video clips , interactive games , ebooks , brandable software , images , or text messages . Successful viral marketing aims to target individuals with high social networking potential (SNP) and create compelling viral messages that resonate within this group. However, it's worth noting that

6764-457: The power of word-of-mouth marketing, especially with the Internet serving as a primary research and communication platform. The Internet's role has simplified communication processes by eliminating barriers like distance and language, encouraging consumers to share their opinions readily and form communities, and sequentially strengthening word-of-mouth marketing. In 2003, Fred Reichheld introduced

6853-424: The program, ways that consumers may access their loyalty account (account number, promotions, other information) may include: There has been a move away from traditional magnetic card, stamp, or punchcard based schemes to online and mobile online loyalty programs. While these schemes vary, the common element is a push toward eradication of a traditional card, in favour of an electronic equivalent. The choice of medium

6942-443: The segmentation has been carried out, target markets selected and the positioning strategy developed, the marketer can begin to shape the marketing mix (or marketing program ) around the needs, wants and motivations of the target audience. The traditional marketing mix refers to four broad levels of marketing decision, namely: product , price , promotion , and place . When implemented successfully, these activities should deliver

7031-446: The segmentation process, detailed market analysis is carried out to identify one or more segments that are worthy of further investigation. Additional research may be undertaken at this juncture to ascertain which segments require detailed analysis with the potential to become target segments. A key consideration in selecting the target markets is whether customer needs are sufficiently different to warrant segmentation and targeting. In

7120-414: The service or item is sold; it also includes the distribution channels in which the company uses to get products or services to market. Finally, Promotion refers to marketing communications used to convey the offer to consumers and may include; personal selling, advertising, public and customer relations, sales promotion and any other activities to communicate with target markets. The first reference to

7209-404: The so-called marketing mix. Instead, they relied on checklists or lengthy classifications of factors that needed to be considered to understand consumer responses. It was not until 1960 when E. Jerome McCarthy published his now-classic work, Basic Marketing: A Managerial Approach that the discipline accepted the 4 Ps as constituting the core elements of the marketing mix. In the 1980s, the 4 Ps

7298-522: The spread of negative opinions and attitudes about their products. The Network Coproduction Model introduced "one-to-one seeding and communication programs", encouraging customer conversations about specific products through released product information. This word-of-mouth model primarily focuses on online activities, utilizing platforms like blogs and online communities to convey product messages. The network coproduction model allows marketers to manage and control online word-of-mouth activities. Marketers use

7387-422: The target market (Ramya & Subasakthi). Differentiated marketing however is a method which requires a lot of money to pull off. Due to messages being changed each time to advertise different messages it is extremely expensive to do as it would cost every time to promote a different message. Differentiated marketing also requires a lot time and energy as it takes time to come up with ideas and presentation to market

7476-467: The target market to know (Ramya & Subasakthi). When television first came out, undifferentiated marketing was used in almost all commercial campaigns to spread one message across to a mass of people. The types of commercials that played on the television back then would often be similar to one another that would often try to make the viewers laugh, These same commercials would play on air for multiple weeks/months to target as many viewers as possible which

7565-420: The target market. Research has generally shown that target marketing strategies are constructed from consumer inferences of similarities between some aspects of the advertisement (e.g., source pictured, language used, lifestyle represented) and characteristics of the consumer (e.g. reality or desire of having the represented style). Consumers are persuaded by the characteristics in the advertisement and those of

7654-421: The term "viral marketing" also carries negative connotations, referring to deceptive practices like stealth marketing and astroturfing to simulate organic word-of-mouth enthusiasm. Consumers promote brands through word-of-mouth based on social, functional, and emotional factors. The Journal of Marketing Research identified thirteen brand characteristics that stimulate WOM: While social and functional play

7743-677: The term, the 'marketing mix' was claimed to be in around 1950 by Neil H. Borden . Borden first used the term, 'marketing mix' in an address given while he was the President of the American Marketing Association in the early 1950s. For instance, he is known to have used the term 'marketing mix' in his presidential address given to the American Marketing Association in 1953. However, at that stage, theorists and academics were not in agreement as to what elements made up

7832-434: The total available market (TAM) is a consumer market or a business market. Market segmentation is the process of dividing a total available market, using one of a number of key bases for segmenting such as demographic, geographic, psychographic, behavioural or needs-based segments. For example, a demographic segmentation of the adult male population might yield the segments, Men 18-24; Men 25-39, Men 40-59 and Men 60+. Whereas

7921-404: Was modified and expanded for use in the marketing of services, which were believed to possess unique characteristics which necessitated a different marketing program. The commonly accepted 7Ps of services marketing include: the original four Ps of product, price, place, promotion plus participants (people), physical evidence and process. A ‘Product’ is "something or anything that can be offered to

#726273