Commercial Application of Trend - Essay Example

Commercial Application of Trend Current Marketing Trends Introduction Marketing industry has undergone a paradigm of change constantly caused by new trends which have made it easy for companies to calculate their profits prior to production there by enabling companies to predict accurately marketing costs. This indulgence of the consumer data in making decisions have allowed the consumer to make important decisions varying with his taste and likes. However as the paper points out most of this trends come along with a dark side which if not controlled can result in negative results. This report chooses to start the discussion by first discussing the internet and related trends before indulging in other trends. Each trend is discussed in a manner to portray its practicality advantages and detriments that stand along. The aim is to introduce different current trends so as to encourage a more sound decision (Lindgreen et al. 2004). Internet marketing: In the last Ten years marketing has undergone extreme makeover changes that it has experienced in the last 100 years (Lamb et al. 2009). Following the recent trends it is no longer enough to be smart in marketing or savvy technologically. What this means is that there is need to understand the different opportunities and risks that confront today’s business. However even in these case their still found companies, who still don’t fully believe, in the internet power which forms and gives today’s most popular trends. Most companies have been seen to capitalize on short term trends among this is the fashion industry which has been shy in implementation of the new trends (Czinkota &Ronkainen, 2007). However these fears are wrongly played, and in most case the traditional businesses is seen to fall victim. This however can be counted by looking at how many consumers, businesses, peers and competitors are already using the internet and the social media as a major platform, for marketing. to understand the importance of the internet the following questions should be considered: what is the number of people currently connected to high speed internet at work and at home. How many people use hipper iPhone to a more standard cellphone? How many book for vacations online? How many go online to do research? The further you push this questions you come to the realization that internet as trend of the new millennium is not a fad. Marketing in the internet has opened wider doors to a larger global audience (Dowd et al., 2010). This is made possible by the ability of the internet to allow instant response and elicit responses a unique quality of the medium. Additionally keeping with this (Dowd et al, 2010).The internet marketing broadly embodies the internet, e-mail, and wireless media whichcallfor management of consumer data and customer relationship management electronically. Currently most companies using the internet basically use it in more than one way. One of this ways now commonly applied is the use of internet for marketing surveys (Dowd et al., 2010). This is where consumers are used to determine the best way, to inform them of the product at hand. For example a company promoting cars establishes a website where by this allows the consumers to raise all the questions in mind. Some of these questions might be as a result of what the customer saw or heard concerning the product. According to Scott (2010) this interaction allows the marketers to establish a system that would embody all concerns with all their customers, despite their location on the world even when it’s impossible to meet as a result of time or distance.However this calls for changes to marketers to put more effort in utilizing the internet to their advantage. One of the most successful internet practices currently being applied by top companies are share on twitter share, on face-book share, on Google +share on linked in email(Lamb et al., 2011). One of the biggest setbacks of internet marketing is the reliance on internet providers (Krafft,&Mantrala, 2010). This means that the success of internet marketing is confined to areas of interest to the internet providers where internet has been made available. In some cases a company might find its main customers are aligned along an area where internet is not available thus making any efforts pushed in this direction largely irrelevant. Database marketing: before database marketing was operational databases used to guide and order entry and fulfillment activities (lamb et al., 2011). It is from this that database marketing becomes taking a central role in formulation of business strategies. From these other trends are seen to rise affecting how businesses establish and retain relationships with consumers and prospects Keillor (2007) observes that the some of the top trends in database marketing are: Multi-channel support. This is applied largely for touch points to bring together call centers, lead management, direct response TV, websites and other affinity activities. Keeping with this observes that marketing database determines the nature of the consumer experience throughashared real time touch point. Picking of event based activities: with the help of the information collected frequently from the database it’s possible to define a specific activity in a database to govern the approach of marketing by looking at changes in a customer’s account; this can be used to determine which other product to offer as an alternative or additional to the purchased or returned product. With such information it’s possible to formulate an event based campaign aimed at the particular customer segment. For example a company can observe that a segment of their customers are about to become parents by the purchases they make and thus set those up for an offer or event geared towards them. Profitability segmentation: using these information database marketers can create models to separate the best consumers for their products. Profitability segmentation is seen to assist in targeting those who are most likely to be profitable. Using this information it is possible to predict profitability you making it even possible to determine how much exactly to invest in marketing. However it is important to note that with increased merging of information there is a possibility of discrepancies among the data. This could easily result in loss of data efficiency which can further result to decreased confidence from clients and users of the database. Creating a solution to solve this challenge, it is important to ensure keenness in collecting, capturing and storing data accurately. Affordable prospect database environments: before the internet age it was extremely expensive for companies to collect data, however with the current development in communication technology, it is easier and easier to gather and collect data. The collected data has proven to provide a rapid return on investment.Low costs of hardware and software costs have opened up doors for competition in outsourced services, when combined with enhanced processing capabilities marketers are seen to expand their database marketing abilities. Analytics: companies like Wal-Mart have successfully been driven by data. With the current ability of an internet user to reach multiple touch points an individual can publish to everyone positive or negative information (Dowd et al., 2010). With twitter and Facebook or even blogging companies will be able to go beyond static data into accepting the social side of information. This means companies can tell what to expect by looking at what is being discussed or spoken off opening up an opportunity for companies to not only know the consumer but to go further and expand who those people are. This will allow companies to say and produce products or services well-manicured for a particular group (Gronroos, 2001). Authenticity: todays companies are seen to go for customer’s attention through authenticity. As a result of the social media people no longer relate to once trusted organizations the way they did with trusted organizations like McDonalds or Domino. Instead the new strategy is relating exactly their cares, their values their work mates, and who they are? In questioning the established brands companies are expected to carefully decide what they stand for Blythe and Zimmerman (2005) states that many more brands are attracting customers by showing support for honesty, kindness and concern on customer’s health. Demerits of this strategy include there has not been established yet an efficient formula of determining the level of authenticity claimed.This opens doors for fake authentic claims which if not watched can lead to customer retaliation. Expertise Rules: currently videos and podcasts have been used to promote brands. Companies have been observed to put more and more materials for educating consumers in these two groups. This opens up doors for more customers to closely relate with the product at a one to one level. However according to Blythe& Zimmerman (2005) Misinterpretation of communicated messages is one detriment of this strategy that can lead to loss of more than one customer. To prevent this professional production is encouraged. Content curation: currently companies are observed to cut information according to different people. This makes it possible for marketers to target information accurately to the appropriate person ((Czinkota, &Ronkainen, 2007). This allows for brands to, remove excess irrelevant information, organizeand add value to information appropriately to attract and retain customers. While content curation is widely used this segmentation confines the product to the chosen customers and loses the opportunity of attracting impulse buyers from buying a segmented product; this may be so even in acase where the particular product might be of benefit to the said impulse buyer. Social Media Growththrough Mobiles: the ease of accessing social media sites through a mobile phone has opened new possibilities for marketers. Companies are setting up twitter accounts and Facebook account in the attempt to reach and interact with consumers. one of major recompense is that it consents marketers to communicate directly with the consumers (Dowd et al., 2010) argues this allows the marketers to correct any arising misconceptions. Likewise incases the company is deemed to be the cause of failure it may lose it clientele’s loyalty; resultantly, this close relationship may judge failure as betrayal. Understanding Big Data: with the shift to digital it is now possible to measure the behavior of consumers. This allows for the creation of customer friendly products which cut down the cost of marketing progressively. However according to Keillor (2007) this has been observed to create extended pressure for marketers in collecting, interpreting, curating and filtering of data to reach practical conclusion. Multi-level marketing is a marketing structure whereby promoters are compensated not only for sales, but also for the sales which have been made by promoters they introduced to the company; thereby developing a down line of distributors compensated in a hierarchical multi levels in a pyramidal form. Multi-level marketing has also been described as network marketing, direct selling, referral marketing and pyramid selling. Most companies applying this method are usually nutritional companies which take advantage of the promoter’s usability to advertise and sell their products at the same time. For companies which apply this strategy are required to develop a good compensation system. In addition to this a good educational strategy for its promoters is seen to increase sales. Like all new trends multi-level marketing has its own downsides one of its down sides is it requires a lot of educational material and tutoring so as to effect the promoters ability in creating more leads(Czinkota &Ronkainen, 2007). This process by itself calls for very high level of marketing investments. Secondly is the issue of professionalism usually involved. Most promoters have no clue about marketing and will be seen using methods at times that may cause the consumers to dislike the products to prevent this companies are forced to train each and every promoter on marketing strategies. Thirdly multi-level marketing is more of a word of mouth strategy and at time a bad word about the company or delays or mistakes may go along way bringing down a whole chain of distributors. Lastlymulti-level marketing companies are more reliant on the promoter’s word of mouth and experience. This however might not represent the true picture of the company or of the product leading to misconception again like the others to correct this would involve more training and more training material that increase the marketing costs (Czinkota & Ronkainen, 2007). CRM or customer relationship management is a term for methods, software’s, including internet capabilities that assist a business to manage customer relationships in an organized way. This trend has seen companies developing software’s that will evaluate the attitude of the consumer dislikes and likings. Keeping with this,lamb et al., (2009)Concludes that a modern company has this as one of its character traits most companies have gone further to hire customer care service providers so as to improve their relationship with their consumers. According to Scott, (2010) internet growth has been seen to open up new doors where by consumers has the abilityto seek a one to one communication with the consumer. Companies most seen to use this strategy differ greatly however most are seen to be in the production of products or services in fast changing environments where compatibility is decreed by the user (Krafft & Mantrala, 2010). This means that the users’ likes and dislikes have to be factored in failure to which the user may reject the product or assume it old fashioned. CRM however has been seen in the past to be too broad and others have argued it should be factored into other trends since it is seen to appear in almost all trends under different angles. In addition according to Keillor (2007) CRM has also been argued to be an expensive outfit that is expensive since CRM calls for a more inclusive system that keeps close contact with the customer for an added cost in the hope of return sales. The cost of research involved to assist an effective relationship is usually considerably high and at times out of contest with direction of the company. This is mostly seen in cases where a third party is hired. The attitude of the third party can easily be concluded to be the attitude of the company (lamb et al., 2011). Lastly changing consumer trends in communication has seen fast changes in the ways of the modern consumers. Where a third party is involved which is mostly the case the hiring company may take too long to respond due to the long communication line that is as a result of too many parties (Krafft&Mantrala, 2010). Green Marketing: is the marketing of products that are assumed to be environmentally safe. Explaining this furtherBlythe & Zimmerman (2005) this trend is clearly visible as more consumers get concerned of how the food or products they consume or use are produced. In case of green marketing a wide range of activities is seen to be incorporated this include modification of product, production process evaluation, changes in packaging styles and transformation of advertising to fit the green ideology. Most food companies have as a result of this emerging trend been forced to use greener raw material. The main advantage of green marketing is the creation of a new market although this depends on which industry a business falls into (Scott, 2010). In reference to Bower (2001) Green marketing however has also been seen to be expensive and a course of concern to many synthetically products manufactures. The issue of cost mainly is as a result of the need of change in the fundamental processing machines used in order to keep up with the trend. This is as a consequence of fear that the call for more green consumers will push some of the developments backwards; brought about by a wholesome approach seen to be used in discouraging the use of synthetic products, even when the particular product is not proved to show negative results to the consumer. Another cost is incurred in trying to prove the authenticity of the green products. This is as a result of the rise of fake green products competing with the real products as a result Event marketing is a strategy focused events organized primarily to make it possible for the customer to have a one to one interaction with the company marketers. The following is a list of events organized by corporations 1. Brand and product launches: most technical companies have been known to attract attention to their products by calling for a launching event (Czinkota & Ronkainen, 2007). During the event the consumer has an opportunity to know more about product or service. Some of the most common products are phonetic products e.g. phones, and tablets, banking products, insurance products. 2. Corporate events; this events are usually employed to target most loyal customers with the aim of appreciating and encouraging the consumer to come back for more. 3. Cause related events: other companies have been known to call for events after a negative cause. For example a company may learn about wrong misconception of its products and thus respond by calling for an event to respond to this misconception. 4. Promotional events: this is usually formed to reestablish the markets for an existing product usually promotional event are applied to educate people more about an existing product. 5. Business event: this is designed majorly for businesses and the aim is usually to open more doors for products by use of a other business platforms. 6. Marketing events: unlike the other events which usually have a different face even though their main purpose is to market; marketing events preserve the marketing face with the hope to attract support old customers by informing them more on the products they use. 7. Fundraising events: usually companies are observed to participate in fundraising as part of social responsibility. However the major goal is usually to create an acceptable face to the consumer 8. Sporting events: the use of sports as a strategy of marketing. Most companies will employ the benefit of sponsoring clubs or players in the hope that in their success they would share in the benefits of a successful image. 9. Entertainment events concerts and live performances: other companies prefer to organize big entertainment events and during this time hope to recruit more customers or leads to further their products. 10. Meetings, conferences, conventions, and seminars: in most cases this events are designed to educate the customers, promoters and distributors on the company’s products and benefits. 11. Concept of rural marketing this form of marketing is seen to target segments of overall market in the economy different from other markets like product, stock or labor markets. This strategy focuses on the fact that rural areas make more of most countries than urban areas opening new low competitive markets for new products and services. 12. Sponsorship on itself is seen as the human side of the company where it assists people in difficult situations in life changing ways. This method is proved to endear companies to its customers. Most companies will offer sponsor ship to Students or orphans caught in financial difficulties. However despite the benefit of meeting the customer, a coordinated event is restricted to only a few people it can reach and in cases of poor planning logistics, events can easily fail giving a company a bad image. In additionKeillor (2007) arguesthat events are limited to particular locations. Each different locations the company targets with this method the government is involved to offer licenses this goes with added cost of transport and other logistics to make it possible. Conclusion This report shows the eleven most important trends needed bymarketing officers in order perform keep up with today’s consumer. This report shows the characteristics and the benefits expected from each trend However in addition to the benefits the report points out the detriment that possesses each in the hope that while choosing a trend to follow the detriments can be planned for efficiently to avoid future failure. Reference Blythe, J. & Zimmerman, A. 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