Final Examination of Marketing Issues - Essay Example

?Marketing Final Examination 2) Smaller and larger businesses do share many of the same characteristics in terms of marketing, but there are some fundamental differences which largely relate to size. The first difference is budget, which obviously is determined exclusively by the size of the business. Large businesses can afford expensive marketing campaigns in the hope of capturing significant market share. On the other hand, small businesses do not have much money to play around with, so their marketing campaigns have to be tighter and with very little room for error. A failed marketing campaign has the potential to sink a small business, whereas a large business can write it off as an acceptable loss. The second biggest difference is in the form of staff. Large business have the luxury of many different departments, with each manned by a number of individuals. In smaller business, the manager of the firm may have to take on several key roles, thus limiting his or her ability to be effective in the marketing role. Finally, the last difference in marketing centers on creativity. Large business often have a lot more contacts in the industry, so their marketing campaigns are more likely to be effective with the market. On the other hand, small businesses do not have the leverage to be creative and often have to design unimaginative yet effective marketing campaigns. 3) Marketing strategies that engage with the customer are the most effective for improving service quality for a small business. Small businesses often do not have large marketing budgets, but that is no excuse for not trying to make a connection with the customer. The great thing about small businesses is than customers often gravitate towards them because of the increased face-to-face interaction. The product or service on offer does influence the marketing strategy to be used. Products or services that require technical expertise will often need to have extensive instruction manuals or allow the customer to inquire further. 4) Social media is a great way for any business to make use of technology to better market itself. There are many benefits to a company being actively involved online, such as the low cost associated with it and also the potential to reach a wide market. Consumers prefer marketing that meets them at a place where they feel comfortable with, and many younger people spend hours on social media sites each week. For a company looking to promote itself, the use of social media is a great way to do so because much of the work can be done by customers of the brand. For example, on Facebook getting comments or likes on company status updates can attract new customers who are friends with people who like the brand. The potential for businesses to use social media is almost endless. 5) The term customer lifetime value (CLV) refers to the monetary value that a company can gain from a particular customer over the course of their lifetime. Measuring CLV can be a difficult procedure over many years due to inflation and changing customer spending power. Comparing data over many decades presents its own challenges because there is no one way to correlate the data over time periods. Firms use CLV in order to determine if it is worth it to spend heavily on consumer marketing campaigns. If there is very little to be gained from capturing a customer, then it would not make sense to pursue that customer through marketing campaigns. Instead of treating customers like people, the CLV thinks of them as assets and determines debits and credits on both sides of the equation. Despite this, it is an important part of any business because of the need to weigh up the costs and benefits associated with maintaining a relationship with a loyal customer. 6) 7) When determining how a product reaches a customer, it is important to consider the effectiveness of it and also the costs involved. Customers appreciate a timely delivery once they have ordered a product, and their reaction to it will determine whether they will be a returning customer or not. A business can use marketing channel strategies to develop a competitive advantage in many different ways. One of these is by choosing a marketing channel that is cost-effective and reaches a wide variety of consumers. Marketing channels should also target specific consumers that are likely to want to purchase the product or service. A competitive advantage can be gained by offering superior customer service so that consumers can feel secure about making a purchase. I have seen this marketing channel strategy used by many online companies that try to reach consumers in many different social networks. 8) Some important advertising channels for a small business include those that cost very little, such as through face-to-face marketing and word-of-mouth marketing. Many new entrepreneurs often do not have vast access to capital and so must build up their brand's image through personal contacts. This can be a painfully slow process because it takes time to get a brand well-known among the public. Entrepreneurs have one advantage over large businesses, and that is that they can use modern and popular advertising trends without the need to go to management approval. Large businesses, while extensive in their market reach, are often slow to react to new trends and must go through procedures in order to implement them. Small businesses have a competitive advantage in this regard because they are relatively free to make their own choices and are not restricted by upper management. Large businesses can use multiple advertising channels, some of which may not be effective. Entrepreneurs often have limited advertising channels but are able to focus their energies on the successful few. 9) Two different types of relationships that a business may have with its customer include those who are loyal and impulsive. In terms of marketing strategy, loyal customers are likely to appreciate something that makes them feel part of the organization. The loyal customer is not looking to make a quick bargain and instead wants to be associated with the brand. The marketing strategy for this group of customers should be to make them feel as though they are an asset of the business. On the other hand, impulsive customers may not stick around for long if they feel they are not getting anything out of using that particular business. Marketing strategies to this type of customer should be to make an impact and offer them a great deal. The purpose is not to turn them into a loyal customer because they are not looking to identify with any particular brand. Sales promotions should be targeted to these individuals on a regular basis. Read More