Marketing is the process by which companies sell their products and/or services to customers. A market system is any structured system enabling many potential market players to obtain and provide: helping both buyers and sellers come together and reach a common understanding of their needs and interests. In a marketplace where multiple parties are involved, marketing becomes an important tool for creating a shared environment that can facilitate communication and increase collaboration. It is also a key element in maintaining competitive advantage and driving growth.
The Features Of Effective Marketing Systems:
Marketing systems need to be carefully structured and organized for maximum results. They are designed to attract and reward those who will participate in the marketing mix. There are two basic models used to organize marketing. One is the traditional marketplace model, whereby the marketing activities of a business firm are divided between two main units: Sales and Marketing. The second is a social system, whereby the marketing functions of a business firm are divided between two sets of people: Customers and Employees. In the latter, employees may find different ways to lure customers – such as using SubscriberZ to get Twitch followers. On the other hand, the traditional marketplace model involves the marketing and sales teams working together to achieve a common goal.
A marketing mix is considered to be a complete set of activities that support the achievement of organizational objectives. The objectives may include new sales, increased distribution, or increased sales volume at established customer locations. Marketing is normally conducted through direct sales force; this involves a combination of direct and indirect marketing channels to achieve the desired objective. Direct sales force usually includes store, office, and network marketing. Out of these three, network marketing is the most commonly implemented marketing channel, and accounts for about 60% of the total business firm’s marketing assets.
Understanding The Different Marketing Channels:
Direct marketing channels are usually deployed according to market coverage and competitive parameters. For example, if a firm wants to increase market coverage to the east coast of the United States, there are a number of direct sales force activities that they can choose from, such as nationwide advertisements via radio and television, local promotions, as well as promotional items and services in stores. Similarly, a manufacturer may opt to expand their market coverage to the rest of the world by creating an international marketing force. This channel can include distribution centers, warehouses, and export processing zones. By using appropriate marketing tools, firms can increase their revenue and reduce costs.
An alternative to direct sales force is to create a hybrid system between the direct and indirect channels. A hybrid system usually employs both new channels as well as the traditional direct marketing methods. For example, some companies create a website where customers can locate information regarding the products and services offered by the company, order online, and pay by credit card. This allows the company to increase its database of potential customers, which in turn can result in higher revenues.
Modern Retail And How Everything Has Changed:
The advent of online shopping and other internet technologies has changed the way consumers buy, shop, and receive marketing communications. Online marketing strategies can be implemented using both new and traditional approaches, and both have significant impacts on the firm’s bottom line.
In the past, a company had to develop a proprietary system or else use an outside provider who would manage the implementation. Using an existing provider for the development and implementation of the new hybrid system allows a company to leverage its experience and expertise while avoiding additional expenses associated with developing and deploying a proprietary system. Further, implementing a hybrid system that incorporates both new and traditional marketing strategies reduces the risk that a company’s marketing strategies will be unsuccessful due to lack of coordination and lack of adequate training.
Some firms are taking advantage of their existing customer base by expanding their marketing functions through existing channels. By using a combination of direct and indirect marketing activities, firms can create an integrated grid of activities that promote growth, position the company, and build customer loyalty. By using an integrated grid, the firm is able to expand the scope of its activities, generate greater revenues, and position the company for sustained competitiveness.
A combination of direct and indirect marketing functions, including distribution channels such as retail, convenience stores, and supercenters; and digital marketing activities such as email campaigns, social media marketing, and website promotion can provide the maximum return on investment for a firm by providing a mix of traditional and new ways to market to individual buyers or groups of buyers who make purchasing decisions based on the preferences that those buyers see exhibited in the content of the products or services that the firm offers.
The ability to leverage the activities of multiple channels to improve the effectiveness of a firm’s marketing mix provides firms with the opportunity to leverage their buying power. Leveraging their buying power enables firms to implement a hybrid system that can increase revenues and position the company for long-term success. Implementing a more effective channel management strategy can provide the opportunity to gain a competitive advantage and lower costs associated with marketing campaigns.
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