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Market research
Marketing strategy
Market segmentation
Profit (accounting)
Positioning (marketing)
Promotion (marketing)
Outline of marketing
Alliance marketing
Ambush marketing
Article marketing
Article video marketing
Cause marketing
Close Range Marketing
Cloud marketing
Communal marketing
Community marketing
Consumer-generated marketing
Cross-media marketing
Customer advocacy
Database marketing
Digital marketing
Direct marketing
Diversity marketing
Ethical marketing
Evangelism marketing
Figure of merit
Global marketing
Guerrilla marketing
Inbound marketing
Influencer marketing
Internet marketing
Loyalty marketing
Marketing communications
Multi-level marketing
Next best action marketing
Permission marketing
Proximity marketing
Reality marketing
Relationship marketing
Shopper marketing
Undercover marketing
Article Sources and Contributors
Image Sources, Licenses and Contributors
Article Licenses
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the
strategy to use in sales, communications and business development.[1] It generates the strategy that underlies sales
techniques, business communication, and business developments.[1] It is an integrated process through which
companies build strong customer relationships and create value for their customers and for themselves.[1]
Marketing is used to identify the customer, satisfy the customer, and keep the customer. With the customer as the
focus of its activities, marketing management is one of the major components of business management. Marketing
evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3
centuries. The adoption of marketing strategies requires businesses to shift their focus from production to the
perceived needs and wants of their customers as the means of staying profitable.
The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of
target markets and delivering the desired satisfactions.[2] It proposes that in order to satisfy its organizational
objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively
than competitors.[2]
Further definitions
Marketing is further defined by the AMA as an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer relationships in ways that benefit the
organization and its stakeholders.[3] The term developed from an original meaning which referred literally to going
to a market to buy or sell goods or services. Seen from a systems point of view, sales process engineering marketing
is "a set of processes that are interconnected and interdependent with other functions,[4] whose methods can be
improved using a variety of relatively new approaches."
The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying,
anticipating and satisfying customer requirements profitably."[5] A different concept is the value-based marketing
which states the role of marketing to contribute to increasing shareholder value.[6] In this context, marketing is
defined as "the management process that seeks to maximize returns to shareholders by developing relationships with
valued customers and creating a competitive advantage."[6]
Marketing practice tended to be seen as a creative industry in the past, which included advertising, distribution and
selling. However, because the academic study of marketing makes extensive use of social sciences, psychology,
sociology, mathematics, economics, anthropology and neuroscience, the profession is now widely recognized as a
science, allowing numerous universities to offer Master-of-Science (MSc) programmes. The overall process starts
with marketing research and goes through market segmentation, business planning and execution, ending with preand post-sales promotional activities. It is also related to many of the creative arts. The marketing literature is also
adept at re-inventing itself and its vocabulary according to the times and the culture.
Browne (2010) reveals that supermarkets intensively research and study consumer behaviour, spending millions of
dollars. Their aim is to make sure that shoppers leave spending much more that they originally planned. ‘Choice’
examined the theory of trolleyology finding that many shoppers instinctively look to the right when they’re in the
supermarket. Supermarkets prey on this biological trait by positioning many expensive impulse buying products to
the right of the checkout. These products consist of the latest DVDs, magazines, chocolates, expensive batteries and
other tempting products that wouldn’t normally be thought of.
Supermarkets move products around to confuse shoppers, the entry point is another marketing tactic. Consumer
psychologist Dr. Paul Harrison (cited in Browne, 2010) states that supermarkets are constantly using different
methodologies of selling. One method is performing regular overhauls changing the locations of products all around
to break habitual shopping, and break your budget. Harrison also contends that people who are shopping in a counter
clockwise direction are likely to spend more money than people shopping in a clockwise direction. Consumer
psychologists (cited in Browne, 2010) reported that most people write with their right hand, thus it is a biological
trait that people have the tendency of veering to the right when shopping, it is understood that supermarkets
capitalize on this fact. Found on the capturing right-hand side are usually appealing products that a shopper might
impulsively e.g. an umbrella when the weather is dull. [7]
Evolution of marketing
An orientation, in the marketing context, related to a perception or attitude a firm holds towards its product or
service, essentially concerning consumers and end-users. Throughout history, marketing has changed considerably in
conjunction with consumer tastes.[8]
Earlier approaches
The marketing orientation evolved from earlier orientations, namely, the production orientation, the product
orientation and the selling orientation.[8] [9]
Profit driver
until the
A firm focusing on a production orientation specializes in producing as much as possible of a given
product or service. Thus, this signifies a firm exploiting economies of scale until the minimum
efficient scale is reached. A production orientation may be deployed when a high demand for a
product or service exists, coupled with a good certainty that consumer tastes will not rapidly alter
(similar to the sales orientation).
Quality of the
until the
A firm employing a product orientation is chiefly concerned with the quality of its own product. A
firm would also assume that as long as its product was of a high standard, people would buy and
consume the product.
1950s and
A firm using a sales orientation focuses primarily on the selling/promotion of a particular product,
and not determining new consumer desires as such. Consequently, this entails simply selling an
already existing product, and using promotion techniques to attain the highest sales possible.
Such an orientation may suit scenarios in which a firm holds dead stock, or otherwise sells a
product that is in high demand, with little likelihood of changes in consumer tastes that would
diminish demand.
Needs and
wants of
1970 to
present day
The 'marketing orientation' is perhaps the most common orientation used in contemporary
marketing. It involves a firm essentially basing its marketing plans around the marketing concept,
and thus supplying products to suit new consumer tastes. As an example, a firm would employ
market research to gauge consumer desires, use R&D to develop a product attuned to the revealed
information, and then utilize promotion techniques to ensure persons know the product exists.
Contemporary approaches
Recent approaches in marketing include relationship marketing with focus on the customer, business marketing or
industrial marketing with focus on an organization or institution and social marketing with focus on benefits to
society.[10] New forms of marketing also use the internet and are therefore called internet marketing or more
generally e-marketing, online marketing, search engine marketing, desktop advertising or affiliate marketing. It
attempts to perfect the segmentation strategy used in traditional marketing. It targets its audience more precisely, and
is sometimes called personalized marketing or one-to-one marketing. Internet marketing is sometimes considered to
be broad in scope, because it not only refers to marketing on the Internet, but also includes marketing done via
e-mail and wireless media.
Profit driver
Relationship marketing /
Building and keeping
good customer
1960s to
present day
Emphasis is placed on the whole relationship between suppliers and
customers. The aim is to provide the best possible customer service and build
customer loyalty.
Business marketing /
Industrial marketing
Building and keeping
relationships between
1980s to
present day
In this context, marketing takes place between businesses or organizations.
The product focus lies on industrial goods or capital goods rather than
consumer products or end products. Different forms of marketing activities,
such as promotion, advertising and communication to the customer are used.
Benefit to society
1990s to
present day
Similar characteristics as marketing orientation but with the added proviso
that there will be a curtailment of any harmful activities to society, in either
product, production, or selling methods.
Brand value
1980s to
present day
In this context, "branding" is the main company philosophy and marketing is
considered an instrument of branding philosophy.
Social marketing
Customer orientation
[[|alt=|thumb|right|Constructive criticism helps marketers adapt offerings to meet changing customer needs.]] A firm
in the market economy survives by producing goods that persons are willing and able to buy. Consequently,
ascertaining consumer demand is vital for a firm's future viability and even existence as a going concern. Many
companies today have a customer focus (or market orientation). This implies that the company focuses its activities
and products on consumer demands. Generally, there are three ways of doing this: the customer-driven approach, the
market change identification approach and the product innovation approach.
In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions. No strategy is
pursued until it passes the test of consumer research. Every aspect of a market offering, including the nature of the
product itself, is driven by the needs of potential consumers. The starting point is always the consumer. The rationale
for this approach is that there is no reason to spend R&D funds developing products that people will not buy. History
attests to many products that were commercial failures in spite of being technological breakthroughs.[11]
A formal approach to this customer-focused marketing is known as SIVA[12] (Solution, Information, Value, Access).
This system is basically the four Ps renamed and reworded to provide a customer focus. The SIVA Model provides a
demand/customer-centric alternative to the well-known 4Ps supply side model (product, price, placement,
promotion) of marketing management.
Promotion →
If any of the 4Ps were problematic or were not in the marketing factor of the business, the business could be in
trouble and so other companies may appear in the surroundings of the company, so the consumer demand on its
products will decrease.
Some qualifications or caveats for customer focus exist. They do not invalidate or contradict the principle of
customer focus; rather, they simply add extra dimensions of awareness and caution to it.
The work of Christensen and colleagues[13] on disruptive technology has produced a theoretical framework that
explains the failure of firms not because they were technologically inept (often quite the opposite), but because the
value networks in which they profitably operated included customers who could not value a disruptive innovation at
the time and capability state of its emergence and thus actively dissuaded the firms from developing it. The lessons
drawn from this work include:
• Taking customer focus with a grain of salt, treating it as only a subset of one's corporate strategy rather than the
sole driving factor. This means looking beyond current-state customer focus to predict what customers will be
demanding some years in the future, even if they themselves discount the prediction.
• Pursuing new markets (thus new value networks) when they are still in a commercially inferior or unattractive
state, simply because their potential to grow and intersect with established markets and value networks looks like
a likely bet. This may involve buying stakes in the stock of smaller firms, acquiring them outright, or incubating
small, financially distinct units within one's organization to compete against them.
Other caveats of customer focus are:
• The extent to which what customers say they want does not match their purchasing decisions. Thus surveys of
customers might claim that 70% of a restaurant's customers want healthier choices on the menu, but only 10% of
them actually buy the new items once they are offered. This might be acceptable except for the extent to which
those items are money-losing propositions for the business, bleeding red ink. A lesson from this type of situation
is to be smarter about the true test validity of instruments like surveys. A corollary argument is that "truly
understanding customers sometimes means understanding them better than they understand themselves." Thus
one could argue that the principle of customer focus, or being close to the customers, is not violated here—just
expanded upon.
• The extent to which customers are currently ignorant of what one might argue they should want—which is dicey
because whether it can be acted upon affordably depends on whether or how soon the customers will learn, or be
convinced, otherwise. IT hardware and software capabilities and automobile features are examples. Customers
who in 1997 said that they would not place any value on internet browsing capability on a mobile phone, or 6%
better fuel efficiency in their vehicle, might say something different today, because the value proposition of those
opportunities has changed.
Organizational orientation
In this sense, a firm's marketing department is often seen as of prime importance within the functional level of an
organization. Information from an organization's marketing department would be used to guide the actions of other
departments within the firm. As an example, a marketing department could ascertain (via marketing research) that
consumers desired a new type of product, or a new usage for an existing product. With this in mind, the marketing
department would inform the R&D department to create a prototype of a product/service based on consumers' new
The production department would then start to manufacture the product, while the marketing department would
focus on the promotion, distribution, pricing, etc. of the product. Additionally, a firm's finance department would be
consulted, with respect to securing appropriate funding for the development, production and promotion of the
product. Inter-departmental conflicts may occur, should a firm adhere to the marketing orientation. Production may
oppose the installation, support and servicing of new capital stock, which may be needed to manufacture a new
product. Finance may oppose the required capital expenditure, since it could undermine a healthy cash flow for the
Herd behavior
Herd behavior in marketing is used to explain the dependencies of customers' mutual behavior. The Economist
reported a recent conference in Rome on the subject of the simulation of adaptive human behavior.[14] It shared
mechanisms to increase impulse buying and get people "to buy more by playing on the herd instinct." The basic idea
is that people will buy more of products that are seen to be popular, and several feedback mechanisms to get product
popularity information to consumers are mentioned, including smart card technology and the use of Radio Frequency
Identification Tag technology. A "swarm-moves" model was introduced by a Florida Institute of Technology
researcher, which is appealing to supermarkets because it can "increase sales without the need to give people
discounts." Other recent studies on the "power of social influence" include an "artificial music market in which some
19,000 people downloaded previously unknown songs" (Columbia University, New York); a Japanese chain of
convenience stores which orders its products based on "sales data from department stores and research companies;" a
Massachusetts company exploiting knowledge of social networking to improve sales; and online retailers who are
increasingly informing consumers about "which products are popular with like-minded consumers" (e.g., Amazon,
Further orientations
• An emerging area of study and practice concerns internal marketing, or how employees are trained and managed
to deliver the brand in a way that positively impacts the acquisition and retention of customers, see also employer
• Diffusion of innovations research explores how and why people adopt new products, services, and ideas.
• With consumers' eroding attention span and willingness to give time to advertising messages, marketers are
turning to forms of permission marketing such as branded content, custom media and reality marketing.
Marketing research
Marketing research involves conducting research to support marketing activities, and the statistical interpretation of
data into information. This information is then used by managers to plan marketing activities, gauge the nature of a
firm's marketing environment and attain information from suppliers. Marketing researchers use statistical methods
such as quantitative research, qualitative research, hypothesis tests, Chi-squared tests, linear regression, correlations,
frequency distributions, poisson distributions, binomial distributions, etc. to interpret their findings and convert data
into information. The marketing research process spans a number of stages, including the definition of a problem,
development of a research plan, collection and interpretation of data and disseminating information formally in the
form of a report. The task of marketing research is to provide management with relevant, accurate, reliable, valid,
and current information.
A distinction should be made between marketing research and market research. Market research pertains to
research in a given market. As an example, a firm may conduct research in a target market, after selecting a suitable
market segment. In contrast, marketing research relates to all research conducted within marketing. Thus, market
research is a subset of marketing research.
Market segmentation
Market segmentation pertains to the division of a market of consumers into persons with similar needs and wants.
For instance, Kellogg's cereals, Frosties are marketed to children. Crunchy Nut Cornflakes are marketed to adults.
Both goods denote two products which are marketed to two distinct groups of persons, both with similar needs,
traits, and wants.
Market segmentation allows for a better allocation of a firm's finite resources. A firm only possesses a certain
amount of resources. Accordingly, it must make choices (and incur the related costs) in servicing specific groups of
consumers. In this way, the diversified tastes of contemporary Western consumers can be served better. With
growing diversity in the tastes of modern consumers, firms are taking note of the benefit of servicing a multiplicity
of new markets.
Market segmentation can be defined in terms of the STP acronym, meaning Segment, Target and Position.
Types of marketing research
Marketing research, as a sub-set aspect of marketing activities, can be divided into the following parts:
• Primary research (also known as field research), which involves the conduction and compilation of research for a
specific purpose.
• Secondary research (also referred to as desk research), initially conducted for one purpose, but often used to
support another purpose or end goal.
By these definitions, an example of primary research would be market research conducted into health foods, which is
used solely to ascertain the needs/wants of the target market for health foods. Secondary research in this case would
be research pertaining to health foods, but used by a firm wishing to develop an unrelated product.
Primary research is often expensive to prepare, collect and interpret from data to information. Nevertheless, while
secondary research is relatively inexpensive, it often can become outdated and outmoded, given that it is used for a
purpose other than the one for which it was intended. Primary research can also be broken down into quantitative
research and qualitative research, which, as the terms suggest, pertain to numerical and non-numerical research
methods and techniques, respectively. The appropriateness of each mode of research depends on whether data can be
quantified (quantitative research), or whether subjective, non-numeric or abstract concepts are required to be studied
(qualitative research).
There also exist additional modes of marketing research, which are:
Exploratory research, pertaining to research that investigates an assumption.
Descriptive research, which, as the term suggests, describes "what is".
Predictive research, meaning research conducted to predict a future occurrence.
Conclusive research, for the purpose of deriving a conclusion via a research process.
Marketing planning
The marketing planning process involves forging a plan for a firm's marketing activities. A marketing plan can also
pertain to a specific product, as well as to an organization's overall marketing strategy. Generally speaking, an
organization's marketing planning process is derived from its overall business strategy. Thus, when top management
are devising the firm's strategic direction or mission, the intended marketing activities are incorporated into this plan.
There are several levels of marketing objectives within an organization. The senior management of a firm would
formulate a general business strategy for a firm. However, this general business strategy would be interpreted and
implemented in different contexts throughout the firm.
Marketing strategy
The field of marketing strategy encompasses the strategy involved in the management of a given product.
A given firm may hold numerous products in the marketplace, spanning numerous and sometimes wholly unrelated
industries. Accordingly, a plan is required in order to effectively manage such products. Evidently, a company needs
to weigh up and ascertain how to utilize its finite resources. For example, a start-up car manufacturing firm would
face little success should it attempt to rival Toyota, Ford, Nissan, Chevrolet, or any other large global car maker.
Moreover, a product may be reaching the end of its life-cycle. Thus, the issue of divest, or a ceasing of production,
may be made. Each scenario requires a unique marketing strategy. Listed below are some prominent marketing
strategy models.
Marketing specializations
With the rapidly emerging force of globalization, the distinction between marketing within a firm's home country
and marketing within external markets is disappearing very quickly. With this in mind, firms need to reorient their
marketing strategies to meet the challenges of the global marketplace, in addition to sustaining their competitiveness
within home markets.[15]
Buying behaviour
A marketing firm must ascertain the nature of customers' buying behavior if it is to market its product properly. In
order to entice and persuade a consumer to buy a product, marketers try to determine the behavioral process of how a
given product is purchased. Buying behavior is usually split into two prime strands, whether selling to the consumer,
known as business-to-consumer (B2C), or to another business, known as business-to-business (B2B).
B2C buying behaviour
This mode of behaviour concerns consumers and their purchase of a given product. For example, if one imagines a
pair of sneakers, the desire for a pair of sneakers would be followed by an information search on available
types/brands. This may include perusing media outlets, but most commonly consists of information gathered from
family and friends. If the information search is insufficient, the consumer may search for alternative means to satisfy
the need/want. In this case, this may mean buying leather shoes, sandals, etc. The purchase decision is then made, in
which the consumer actually buys the product. Following this stage, a post-purchase evaluation is often conducted,
comprising an appraisal of the value/utility brought by the purchase of the sneakers. If the value/utility is high, then a
repeat purchase may be made. This could then develop into consumer loyalty to the firm producing the sneakers.
B2B buying behaviour
Relates to organizational/industrial buying behavior.[16] "B2B" stands for Business to Business. B2B marketing
involves one business marketing a product or service to another business. B2C and B2B behavior are not precise
terms, as similarities and differences exist, with some key differences listed below:
In a straight re-buy, the fourth, fifth and sixth stages are omitted. In a modified re-buy scenario, the fifth and sixth
stages are precluded. In a new buy, all stages are conducted.
Use of technologies
Marketing management can also rely on various technologies within the scope of its marketing efforts.
Computer-based information systems can be employed, aiding in better processing and storage of data. Marketing
researchers can use such systems to devise better methods of converting data into information, and for the creation of
enhanced data gathering methods. Information technology can aid in enhancing an MKIS' software and hardware
components, and improve a company's marketing decision-making process.
In recent years, the notebook personal computer has gained significant market share among laptops, largely due to its
more user-friendly size and portability. Information technology typically progresses at a fast rate, leading to
marketing managers being cognizant of the latest technological developments. Moreover, the launch of smartphones
into the cellphone market is commonly derived from a demand among consumers for more technologically advanced
products. A firm can lose out to competitors should it ignore technological innovations in its industry.
Technological advancements can lessen barriers between countries and regions. Using the World Wide Web, firms
can quickly dispatch information from one country to another without much restriction. Prior to the mass usage of
the Internet, such transfers of information would have taken longer to send, especially if done via snail mail, telex,
Recently, there has been a large emphasis on data analytics. Data can be mined from various sources such as online
forms, mobile phone applications and more recently, social media.
Services marketing
Services marketing relates to the marketing of services, as opposed to tangible products. A service (as opposed to a
good) is typically defined as follows:
• The use of it is inseparable from its purchase (i.e., a service is used and consumed simultaneously)
• It does not possess material form, and thus cannot be touched, seen, heard, tasted, or smelled.
• The use of a service is inherently subjective, meaning that several persons experiencing a service would each
experience it uniquely.
For example, a train ride can be deemed a service. If one buys a train ticket, the use of the train is typically
experienced concurrently with the purchase of the ticket. Although the train is a physical object, one is not paying for
the permanent ownership of the tangible components of the train.
Services (compared with goods) can also be viewed as a spectrum. Not all products are pure goods, nor are all pure
services. An example would be a restaurant, where a waiter's service is intangible, but the food is tangible.
[1] Kotler, Philip; Gary Armstrong, Veronica Wong, John Saunders (2009). "Marketing defined" (http:/ / books. google. com/
books?id=6T2R0_ESU5AC& lpg=PP1& pg=PA7#v=onepage& q=& f=true). Principles of marketing (5th ed.). p. 7. . Retrieved 2009-10-23.
[2] Kotler, Philip; Gary Armstrong, Veronica Wong, John Saunders (2008). "Marketing defined" (http:/ / books. google. com/
books?id=6T2R0_ESU5AC& lpg=PP1& pg=PA7#v=onepage& q=& f=true). Principles of marketing (5th ed.). p. 17. . Retrieved 2009-10-23.
[3] "Dictionary." American Marketing Association. http:/ / www. marketingpower. com/ _layouts/ Dictionary. aspx. Retrieved 2011-03-31.
[4] Paul H. Selden (1997). Sales Process Engineering: A Personal Workshop. Milwaukee, WI. p. 23.
[5] "Definition of marketing" (http:/ / www. cim. co. uk/ resources/ understandingmarket/ definitionmkting. aspx). Chartered Institute of
Marketing. . Retrieved 2009-10-30.
[6] Paliwoda, Stanley J.; John K. Ryans. "Back to first principles" (http:/ / books. google. com/ books?id=dwZz2eHBCjUC& lpg=PP1&
pg=PA25#v=onepage& q=& f=false). International Marketing: Modern and Classic Papers (1st ed.). p. 25. . Retrieved 2009-10-15.
[7] Browne, K 2010, ‘Trolley psychology: choice unlocks the psychological secrets of the supermarket and shows you how to avoid spending
more than you mean to’, Choice, Australasian Consumers’ Association, Chippendale, NSW, Australia, no. 4, April, pp. 60-64, retrieved 14
October 2010, Expanded Academic database.
[8] Kotler, Philip; Kevin Lane Keller (2009). "1". A Framework for Marketing Management (4th ed.). Pearson Prentice Hall. ISBN 0136026605.
[9] Adcock, Dennis; Al Halborg, Caroline Ross (2001). "Introduction" (http:/ / books. google. com/ books?id=hQ8XfLd1cGwC& lpg=PP1&
pg=PA15#v=onepage& q=& f=true). Marketing: principles and practice (4th ed.). p. 15. . Retrieved 2009-10-23.
[10] Adcock, Dennis; Al Halborg, Caroline Ross (2001). "Introduction" (http:/ / books. google. com/ books?id=hQ8XfLd1cGwC& lpg=PP1&
pg=PA16#v=onepage& q=& f=true). Marketing: principles and practice. p. 16. . Retrieved 2009-10-23.
[11] "Marketing Management: Strategies and Programs", Guiltinan et al., McGraw Hill/Irwin, 1996
[12] Dev, Chekitan S.; Don E. Schultz (January/February 2005). "In the Mix: A Customer-Focused Approach Can Bring the Current Marketing
Mix into the 21st Century". Marketing Management 14 (1).
[13] Christensen 1997.
[14] "Swarming the shelves: How shops can exploit people's herd mentality to increase sales". The Economist. 2006-11-11. p. 90.
[15] Joshi, Rakesh Mohan, (2005) International Marketing, Oxford University Press, New Delhi and New York ISBN 0195671236
[16] "Chapter 6: Organizational markets and buyer behavior" (http:/ / www-rohan. sdsu. edu/ ~renglish/ 370/ notes/ chapt06/ index. htm). . Retrieved 2010-03-06.
Works cited
• Christensen, Clayton M. (1997), The innovator's dilemma: when new technologies cause great firms to fail (http:/
/, Boston, Massachusetts, USA: Harvard Business School
Press, ISBN 978-0-87584-585-2.
A customer (also known as a client, buyer, or purchaser) is usually used to refer to a current or potential buyer or
user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through
purchasing or renting goods or services. However, in certain contexts, the term customer also includes by extension
any entity that uses or experiences the services of another. A customer may also be a viewer of the product or service
that is being sold despite deciding not to buy them. The general distinction between a customer and a client is that a
customer purchases products, whereas a client purchases services.
The word derives from "custom," meaning "habit"; a customer was someone who frequented a particular shop, who
made it a habit to purchase goods of the sort the shop sold there rather than elsewhere, and with whom the
shopkeeper had to maintain a relationship to keep his or her "custom," meaning expected purchases in the future.
The slogans "the customer is king" or "the customer is god" or "the customer is always right" indicate the importance
of customers to businesses – although the last expression is sometimes used ironically.
However, "customer" also has a more generalized meaning as in customer service and a less commercialized
meaning in not-for-profit areas. To avoid unwanted implications in some areas such as government services,
community services, and education, the term "customer" is sometimes substituted by words such as "constituent" or
"stakeholder". This is done to address concerns that the word "customer" implies a narrowly commercial relationship
involving the purchase of products and services. However, some managers in this environment, in which the
emphasis is on being helpful to the people one is dealing with rather than on commercial sales, comfortably use the
word "customer" to both internal and external customers.
OBSOLETE meaning: In the early 17th century customer was defined as a "common prostitute". This meaning is
important for understanding historical literary works. ("I marry her! What, a customer?") Othello, or ("I think thee
now a common customer") All's Well that Ends Well.[1] Today the meaning of "customer" has been inverted in this
See also
Customer service
Customer centricity
Customer relationship management
Customer data integration
Guided selling
Service level agreement
Early adopter
Business-to-consumer (B2C, sometimes also called Business-to-Customer) describes activities of businesses
serving end consumers with products and/or services.
An example of a B2C transaction would be a person buying a pair of shoes from a retailer. The transactions that led
to the shoes being available for purchase, that is the purchase of the leather, laces, rubber, etc. However, the sale of
the shoe from the shoemaker to the retailer would be considered a (B2B) transaction.
Types of Business to Consumer
While the term e-commerce refers to all online transactions, B2C stands for "business-to-consumer" and applies to
any business or organization that sells its products or services to consumers over the Internet for its own use. When
most people think of B2C e-commerce, they think of Amazon, the online bookseller that launched its site in 1995
and quickly took on the nation's major retailers. In addition to online retailers, B2C has grown to include services
such as online banking, travel services, online auctions, health information and real estate sites. Peer-to-peer sites
such as Craigslist also fall under the B2C category.
B2C e-commerce went through some tough times, particularly after the technology-heavy Nasdaq crumbled in 2000.
In the ensuing dotcom carnage, hundreds of e-commerce sites shut their virtual doors and some experts predicted
years of struggle for online retail ventures. Since then, however, shoppers have continued to flock to the web in
increasing numbers. In fact, North American consumers adopted e-commerce so much that despite growing fears
about identity theft, they spent $172 billion shopping online in 2005, up from $38.8 billion in 2000.
By 2010, consumers are expected to spend $329 billion each year online, according to Forrester Research. What’s
more, the percentage of U.S. households shopping online is expected to grow from 39 percent this year to 48 percent
in 2010.
In October 2010, an extension of B2C, B21 was coined (sometimes referred to as B2I). While B2C includes all
manners of a business marketing or selling to consumers, B21 is specifically targeted towards an individual. B21
requires specific Personalization for that individual. B21 requires Insight in order to create the personalized
According to marketingterms "B2C businesses played a large role in the rapid development of the commercial
Internet in the late 20th century. Large sums of venture capital flowed to consumers in the form of free online
services and discounted shopping, spurring adoption of the new medium." Business to Consumer e-consumer quickly
developed as an alternative way for companies to sell more products to a larger market.B2C e-commerce provided
not only multiple advantages to a company but also to the consumers. The main advantages for both the business
and consumer are that by opening their market up to B2C e-commerce trade they are reducing transactions costs.
Businesses usually ship their products to a number of stores to make them visible to the consumer. However, by
using B2C commerce they can instead showcase all of their products on the internet which reduces the cost of
transaction. B2C also allows their customers to better access information about different [[File:[1] ]]product and
sellers which broadens the selection available to their customers. Business to consumer ecommerce is valuable to
the economy because it creates a more unique way for businesses and consumers to interact.
Unique attributes
• Negotiation: Selling to another business involves haggling over prices, delivery and product specifications. Not so
with most consumer sales. That makes it easier for retailers to put a catalog online, and it's why the first B2C
applications were for buying finished goods or commodities that are simple to describe and price.
• Integration: Retailers don't have to integrate with their customers' systems. Companies selling to other businesses,
however, need to make sure they can communicate without human intervention.
[1] Example.jpg
Business to Consumer[1]
Business-to-business (B2B) describes commerce transactions between
businesses, such as between a manufacturer and a wholesaler, or
between a wholesaler and a retailer. Contrasting terms are
business-to-consumer (B2C) and business-to-government (B2G).
The volume of B2B (Business-to-Business) transactions is much
higher than the volume of B2C transactions. The primary reason for
this is that in a typical supply chain there will be many B2B
transactions involving sub components or raw materials, and only one
B2C transaction, specifically sale of the finished product to the end
customer. For example, an automobile manufacturer makes several
B2B transactions such as buying tires, glass for windscreens, and
rubber hoses for its vehicles. The final transaction, a finished vehicle
sold to the consumer, is a single (B2C) transaction.
The "electronic components district" of
Guangzhou, where numerous shops sell
electronic components to other companies that
would use them to manufacture consumer goods.
B2B is also used in the context of communication and collaboration. Many businesses are now using social media to
connect with their consumers (B2C); however, they are now using similar tools within the business so employees
can connect with one another. When communication is taking place amongst employees, this can be referred to as
"B2B" communication.
The term "business-to-business" was originally coined to describe the electronic communications between
businesses or enterprises in order to distinguish it from the communications between businesses and consumers
(B2C). It eventually came to be used in marketing as well, initially describing only industrial or capital goods
marketing. Today it is widely used to describe all products and services used by enterprises. Many professional
institutions and the trade publications focus much more on B2C than B2B, although most sales and marketing
personnel are in the B2B sector.
Market research
Market research
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Market research is any organized effort to gather information about markets or customers. It is a very important
component of business strategy.[1] The term is commonly interchanged with marketing research; however, expert
practitioners may wish to draw a distinction, in that marketing research is concerned specifically about marketing
processes, while market research is concerned specifically with markets.[2]
Market Research is a key factor to get advantage over competitors. Market research provides important information
to identify and analyze the market need, market size and competition.
Market research,as defined by the ICC/ESOMAR International Code on Market and Social Research, includes social
and opinion research, [and] is the systematic gathering and interpretation of information about individuals or
organizations using statistical and analytical methods and techniques of the applied social sciences to gain insight or
support decision making.[3]
Market research
Market research began to be conceptualized and put into formal practice during the 1920s, as an offshoot of the
advertising boom of the Golden Age of radio in the United States. Advertisers began to realize the significance of
demographics revealed by sponsorship of different radio programs.
Market research for business/planning
Market research is for discovering what people want, need, or believe. It can also involve discovering how they act.
Once that research is completed, it can be used to determine how to market your product.
Questionnaires and focus group discussion surveys are some of the instruments for market research.
For starting up a business, there are some important things:
• Market information
Through Market information one can know the prices of the different commodities in the market, as well as the
supply and demand situation. Information about the markets can be obtained from different sources, varieties and
formats, as well as the sources and varieties that have to be obtained to make the business work.
• Market segmentation
Market segmentation is the division of the market or population into subgroups with similar motivations. It is widely
used for segmenting on geographic differences, personality differences, demographic differences, technographic
differences, use of product differences, psychographic differences and gender differences. For B2B segmentation
firmographics is commonly used.
• Market trends
Market trends are the upward or downward movement of a market, during a period of time. The market size is more
difficult to estimate if one is starting with something completely new. In this case, you will have to derive the figures
from the number of potential customers, or customer segments. [Ilar 1998]
Besides information about the target market, one also needs information about one's competitors, customers,
products, etc. Lastly, you need to measure marketing effectiveness. A few techniques are:
Customer analysis
Choice modelling
Competitor analysis
Risk analysis
Product research
Advertising the research
Marketing mix modeling
Financial performance
Top 9 of the market research sector 2009
From the Honomichl Top 50:
Market research
Sales in 2009
(million USD)
Growth in %
Nielsen Company
Kantar Group - TNS, Millward Brown, BMRB, IMRB International and Ziment Group 4,692.0
IMS Health Inc.
Global market research turnover in 2009
Sales in 2009
(million USD)
North America
Asia Pacific
Latin America
Middle East & Africa 492
[1] McQuarrie, Edward (2005), The market research toolbox: a concise guide for beginners (http:/ / books. google. com/ ?id=qYW8vE0nx4gC&
printsec=frontcover& dq="market+ research"& q="gather information about") (2nd ed.), SAGE, ISBN 9781412913195,
[2] McDonald, Malcolm (2007), Marketing Plans (http:/ / books. google. com/ ?id=os0K20MsepoC& pg=PA364& dq="market+ research+ vs. +
marketing+ research"& q=) (6th ed.), Oxford, England: Butterworth-Heinemann, ISBN 978-0750683869,
[3] ICC/ESOMAR (2008), International Code on Market and Social Research. ICC/ESOMAR Amsterdam, the Netherlands, 4th ed. http:/ /
www. esomar. org/ uploads/ pdf/ professional-standards/ ICCESOMAR_Code_English_. pdf
[4] ESOMAR Industry Report (2010): http:/ / www. esomar. org/ uploads/ industry/ reports/ global-market-research-2010/
ESOMAR_GMR2010_Cover-Contents-FirstChapter. pdf
Other reading
• Bradley, Nigel Marketing Research. Tools and Techniques.Oxford University Press, Oxford, 2010
• Marder, Eric The Laws of Choice—Predicting Customer Behavior (The Free Press division of Simon and
Schuster, 1997. ISBN 0-684-83545-2
• Young, Charles E, The Advertising Handbook, Ideas in Flight, Seattle, WA, April 2005. ISBN 0-9765574-0-1
• Kotler, Philip and Armstrong, Gary Principles of Marketing Pearson, Prentice Hall, New Jersey, 2007 ISBN
978-0-13-239002-6, ISBN 0-13-239002-7
Market research
External links
• Honomichl Top 50 - 2008 (
2008/42/11/H1-H69_AMA.6.15.08.hono.pdf). Annual business report of the top 50
players in the U.S. marketing research industry. American Marketing Association
Marketing strategy
Marketing strategy
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest
opportunities to increase sales and achieve a sustainable competitive advantage.[1]
Developing a marketing strategy
Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and
reach marketing objectives.[2] Plans and objectives are generally tested for measurable results. Commonly, marketing
strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the
current year. Time horizons covered by the marketing plan vary by company, by industry, and by nation, however,
time horizons are becoming shorter as the speed of change in the environment increases.[3] Marketing strategies are
dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics.
Marketing strategy involves careful scanning of the internal and external environments which are summarized in a
SWOT analysis.[4] Internal environmental factors include the marketing mix, plus performance analysis and strategic
constraints.[5] External environmental factors include customer analysis, competitor analysis, target market analysis,
as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to
impact success.[3] [6] A key component of marketing strategy is often to keep marketing in line with a company's
overarching mission statement.[7] Besides SWOT analysis, portfolio analyses such as the GE/McKinsey matrix [8] or
COPE analysis[9] can be performed to determine the strategic focus.
Marketing strategy
Once a thorough environmental scan is complete, a strategic plan can be constructed to identify business alternatives,
establish challenging goals, determine the optimal marketing mix to attain these goals, and detail implementation.[3]
A final step in developing a marketing strategy is to create a plan to monitor progress and a set of contingencies if
problems arise in the implementation of the plan.
Types of strategies
Marketing strategies may differ depending on the unique situation of the individual business. However there are a
number of ways of categorizing some generic strategies. A brief description of the most common categorizing
schemes is presented below:
• Strategies based on market dominance - In this scheme, firms are classified based on their market share or
dominance of an industry. Typically there are four types of market dominance strategies:
• Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope
refers to the market penetration while strategic strength refers to the firm’s sustainable competitive advantage. The
generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are
Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow.
• Product differentiation (broad)
• Cost leadership (broad)
• Market segmentation (narrow)
• Innovation strategies — This deals with the firm's rate of the new product development and business model
innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are
three types:
• Pioneers
• Close followers
• Late followers
• Growth strategies — In this scheme we ask the question, “How should the firm grow?”. There are a number of
different ways of answering that question, but the most common gives four answers:
Horizontal integration
Vertical integration
A more detailed scheme uses the categories[10] :
Marketing warfare strategies - This scheme draws parallels between marketing strategies and military strategies.
Marketing strategy
Strategic models
Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a
strategic analysis, the 3Cs can be employed to get a broad understanding of the strategic environment. An Ansoff
Matrix is also often used to convey an organization's strategic positioning of their marketing mix. The 4Ps can then
be utilized to form a marketing plan to pursue a defined strategy.
There are many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of
running their business centered around Consumer, Shopper & Retailer needs. Their Marketing departments spend
quality time looking for "Growth Opportunities" in their categories by identifying relevant insights (both mindsets
and behaviors) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from
changes in market trends, segment dynamics changing and also internal brand or operational business challenges.The
Marketing team can then prioritize these Growth Opportunities and begin to develop strategies to exploit the
opportunities that could include new or adapted products, services as well as changes to the 7Ps.
Real-life marketing
Real-life marketing primarily revolves around the application of a great deal of common-sense; dealing with a
limited number of factors, in an environment of imperfect information and limited resources complicated by
uncertainty and tight timescales. Use of classical marketing techniques, in these circumstances, is inevitably partial
and uneven.
Thus, for example, many new products will emerge from irrational processes and the rational development process
may be used (if at all) to screen out the worst non-runners. The design of the advertising, and the packaging, will be
the output of the creative minds employed; which management will then screen, often by 'gut-reaction', to ensure that
it is reasonable.
For most of their time, marketing managers use intuition and experience to analyze and handle the complex, and
unique, situations being faced; without easy reference to theory. This will often be 'flying by the seat of the pants', or
'gut-reaction'; where the overall strategy, coupled with the knowledge of the customer which has been absorbed
almost by a process of osmosis, will determine the quality of the marketing employed. This, almost instinctive
management, is what is sometimes called 'coarse marketing'; to distinguish it from the refined, aesthetically pleasing,
form favored by the theorists.
Baker, Michael The Strategic Marketing Plan Audit 2008. ISBN 1902433998. p.3
Marketing basics Marketing strategy based on market needs, targets and goals (http:/ / perso. orange. fr/ pgreenfinch/ mkting/ mkting3. htm).
Aaker, David Strategic Market Management 2008. ISBN 9780470056233
Hausman Marketing Letter Definition of Marketing Series (http:/ / hausmanmarketresearch. org/ marketing-strategy/
definition-of-marketing-series-marketing-strategy/ )
[5] Aaker, David Strategic Market Management 2008. ISBN 9780470056233.
[6] http:/ / www. marketingthatworks. tv/ marketing-explained-in-short-easy-words/ definition-of-marketing-series-marketing-strategy. html
MarketingThatWorks.TV Marketing Strategy.
[7] Baker, Michael The Strategic Marketing Plan Audit 2008. ISBN 1902433998. p. 27
[8] (http:/ / www. mckinseyquarterly. com/ Enduring_ideas_The_GE-McKinsey_nine-box_matrix_2198)
[9] COPE analysis explained (http:/ / www. copeanalysis. com)
[10] Miles, Raymond (2003). Organizational Strategy, Structure, and Process. Stanford: Stanford University Press. ISBN 0804748403.
Marketing strategy
Further reading
• Laermer, Richard; Simmons, Mark, Punk Marketing, New York : Harper Collins, 2007 ISBN 978-0-06-115110-1
(Review of the book by Marilyn Scrizzi, in Journal of Consumer Marketing 24(7), 2007)
Market segmentation
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Market segmentation is a concept in economics and marketing. A market segment is a sub-set of a market made up
of people or organizations with one or more characteristics that cause them to demand similar product and/or
services based on qualities of those products such as price or function. A true market segment meets all of the
following criteria: it is distinct from other segments (different segments have different needs), it is homogeneous
within the segment (exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a
market intervention. The term is also used when consumers with identical product and/or service needs are divided
up into groups so they can be charged different amounts for the services. The people in a given segment are
supposed to be similar in terms of criteria by which they are segmented and different from other segments in terms
of these criteria. These can be broadly viewed as 'positive' and 'negative' applications of the same idea, splitting up
the market into smaller groups.
• Gender
• Price
Market segmentation
• Interests
While there may be theoretically 'ideal' market segments, in reality every organization engaged in a market will
develop different ways of imagining market segments, and create Product differentiation strategies to exploit these
segments. The market segmentation and corresponding product differentiation strategy can give a firm a temporary
commercial advantage.
"Positive" market segmentation
Market segmenting is dividing the market into groups of individual markets with similar wants or needs that a
company divides into distinct groups which have distinct needs, wants, behavior or which might want different
products & services. Broadly, markets can be divided according to a number of general criteria, such as by industry
or public versus private. Although industrial market segmentation is quite different from consumer market
segmentation, both have similar objectives. All of these methods of segmentation are merely proxies for true
segments, which don't always fit into convenient demographic boundaries.
Consumer-based market segmentation can be performed on a product specific basis, to provide a close match
between specific products and individuals. However, a number of generic market segment systems also exist, e.g. the
system provides a broad segmentation of the population of the United States based on the statistical analysis of
household and geodemographic data.
The process of segmentation is distinct from positioning (designing an appropriate marketing mix for each segment).
The overall intent is to identify groups of similar customers and potential customers; to prioritize the groups to
address; to understand their behavior; and to respond with appropriate marketing strategies that satisfy the different
preferences of each chosen segment. Revenues are thus improved.
Improved segmentation can lead to significantly improved marketing effectiveness. Distinct segments can have
different industry structures and thus have higher or lower attractiveness
Once a market segment has been identified (via segmentation), and targeted (in which the viability of servicing the
market intended), the segment is then subject to positioning. Positioning involves ascertaining how a product or a
company is perceived in the minds of consumers.
This part of the segmentation process consists of drawing up a perceptual map, which highlights rival goods within
one's industry according to perceived quality and price. After the perceptual map has been devised, a firm would
consider the marketing communications mix best suited to the product in question.
Using Segmentation in Customer Retention
The basic approach to retention-based segmentation is that a company tags each of its active customers with 3
Tag #1: Is this customer at high risk of canceling the company's service? One of the most common indicators of
high-risk customers is a drop off in usage of the company's service. For example, in the credit card industry this
could be signaled through a customer's decline in spending on his or her card.
Tag #2: Is this customer worth retaining? This determination boils down to whether the post-retention profit
generated from the customer is predicted to be greater than the cost incurred to retain the customer. Managing
Customers as Investments. [1] [2]
Tag #3: What retention tactics should be used to retain this customer? For customers who are deemed
“save-worthy”, it’s essential for the company to know which save tactics are most likely to be successful. Tactics
commonly used range from providing “special” customer discounts to sending customers communications that
Market segmentation
reinforce the value proposition of the given service.
Process for tagging customers
The basic approach to tagging customers is to utilize historical retention data to make predictions about active
customers regarding:
• Whether they are at high risk of canceling their service
• Whether they are profitable to retain
• What retention tactics are likely to be most effective
The idea is to match up active customers with customers from historic retention data who share similar attributes.
Using the theory that “birds of a feather flock together”, the approach is based on the assumption that active
customers will have similar retention outcomes as those of their comparable predecessor.
Price Discrimination
Where a monopoly exists, the price of a product is likely to be higher than in a competitive market and the quantity
sold less, generating monopoly profits for the seller. These profits can be increased further if the market can be
segmented with different prices charged to different segments charging higher prices to those segments willing and
able to pay more and charging less to those whose demand is price elastic. The price discriminator might need to
create rate fences that will prevent members of a higher price segment from purchasing at the prices available to
members of a lower price segment. This behavior is rational on the part of the monopolist, but is often seen by
competition authorities as an abuse of a monopoly position, whether or not the monopoly itself is sanctioned.
Examples of this exist in the transport industry (a plane or train journey to a particular destination at a particular time
is a practical monopoly) where business class customers who can afford to pay may be charged prices many times
higher than economy class customers for essentially the same service.
[1] Gupta, Sunil. Lehmann, Donald R. Managing Customers as Investments: The Strategic Value of Customers in the Long Run, pages 70-77
(“Customer Retention” section). Upper Saddle River, NJ: Pearson Education/Wharton School Publishing, 2005. ISBN 0-13-142895-0
[2] Goldstein, Doug. “What is Customer Segmentation?” (http:/ / www. mindofmarketing. net/ 2007/ 05/
customer-segmentation-why-exactly-does. html), May 2007. New York, NY.
Profit (accounting)
Profit (accounting)
In accounting, profit can be considered to be the difference between the purchase price and the costs of bringing to
market whatever it is that is accounted as an enterprise (whether by harvest, extraction, manufacture, or purchase) in
terms of the component costs of delivered goods and/or services and any operating or other expenses.
There are several important profit measures in common use which will be explained in the following. Note that the
words earnings, profit and income are used as substitutes in some of these terms (also depending on US vs. UK
usage), thus inflating the number of profit measures.
Gross profit equals sales revenue minus cost of goods sold (COGS), thus removing only the part of expenses that
can be traced directly to the production of the goods. Gross profit still includes general (overhead) expenses like
R&D, S&M, G&A, also interest expense, taxes and extraordinary items.
Operating profit equals gross profit minus all operating expenses. This is the surplus generated by operations. It is
also known as earnings before interest and taxes (EBIT), operating profit before interest and taxes (OPBIT) or
simply profit before interest and taxes (PBIT).
(Net) profit before tax (PBT) equals operating profit minus interest expense (but before taxes). It is also known as
earnings before taxes (EBT), pre-tax book income (PTBI), net operating income before taxes or simply pre-tax
Net profit equals profit after tax (unless some distinction about the treatment of extraordinary expenses is made). In
the US the term net income is commonly used. Income before extraordinary expenses represents the same but
before adjusting for extraordinary items.
Net income minus dividends becomes retained earnings.
There are several additional important profit measures, notably EBITDA and NOPAT.
To accountants, economic profit, or EP, is a single-period metric to determine the value created by a company in
one period - usually a year. It is the net profit after tax less the equity charge, a risk-weighted cost of capital. This is
almost identical to the economist's definition of economic profit.
There are commentators who see benefit in making adjustments to economic profit such as eliminating the effect of
amortized goodwill or capitalizing expenditure on brand advertising to show its value over multiple accounting
periods. The underlying concept was first introduced by Schmalenbach, but the commercial application of the
concept of adjusted economic profit was by Stern Stewart & Co. which has trade-marked their adjusted economic
profit as EVA or Economic Value Added.
Some economists define further types of profit:
• Abnormal profit (or supernormal profit)
• Subnormal profit
• monopoly profit (super profit)
Optimum Profit—This is the "right amount" of profit a business can achieve. In business, this figure takes account
of marketing strategy, market position, and other methods of increasing returns above the competitive rate.
Accounting profits should include economic profits, which are also called economic rents. For instance, a monopoly
can have very high economic profits, and those profits might include a rent on some natural resource that firm owns,
where that resource cannot be easily duplicated by other firms.
Profit (accounting)
• Pyle, William W., and Kermit D. Larson (1981). Fundamental Accounting Principles. Homewood, Illinois:
Richard D. Irwin. ISBN 0256023867
External links
• Profit and Loss (, Ludwig von Mises (1951)
• Measuring the Long-Run Profitability of the Firm (, Salmi Virtanen (1997)
A price tag for a product on sale.
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Pricing is the process of determining what a company will receive in exchange for its products. Pricing factors are
manufacturing cost, market place, competition, market condition, and quality of product. Pricing is also a key
variable in microeconomic price allocation theory. Pricing is a fundamental aspect of financial modeling and is one
of the four Ps of the marketing mix. The other three aspects are product, promotion, and place. Price is the only
revenue generating element amongst the four Ps, the rest being cost centers.
Pricing is the manual or automatic process of applying prices to purchase and sales orders, based on factors such as:
a fixed amount, quantity break, promotion or sales campaign, specific vendor quote, price prevailing on entry,
shipment or invoice date, combination of multiple orders or lines, and many others. Automated systems require more
setup and maintenance but may prevent pricing errors. The needs of the consumer can be converted into demand
only if the consumer has the willingness and capacity to buy the product. Thus pricing is very important in
Questions involved in pricing
Pricing involves asking questions like:
• How much to charge for a product or service? This question is a typical starting point for discussions about
pricing, however, a better question for a vendor to ask is - How much do customers value the products, services,
and other intangibles that the vendor provides.
• What are the pricing objectives?
• Do we use profit maximization pricing?
• How to set the price?: (cost-plus pricing, demand based or value-based pricing, rate of return pricing, or
competitor indexing)
• Should there be a single price or multiple pricing?
Should prices change in various geographical areas, referred to as zone pricing?
Should there be quantity discounts?
What prices are competitors charging?
Do you use a price skimming strategy or a penetration pricing strategy?
What image do you want the price to convey?
Do you use psychological pricing?
How important are customer price sensitivity (e.g. "sticker shock") and elasticity issues?
Can real-time pricing be used?
Is price discrimination or yield management appropriate?
Are there legal restrictions on retail price maintenance, price collusion, or price discrimination?
Do price points already exist for the product category?
How flexible can we be in pricing? : The more competitive the industry, the less flexibility we have.
• The price floor is determined by production factors like costs (often only variable costs are taken into account),
economies of scale, marginal cost, and degree of operating leverage
• The price ceiling is determined by demand factors like price elasticity and price points
Are there transfer pricing considerations?
What is the chance of getting involved in a price war?
How visible should the price be? - Should the price be neutral? (i.e.: not an important differentiating factor),
should it be highly visible? (to help promote a low priced economy product, or to reinforce the prestige image of a
quality product), or should it be hidden? (so as to allow marketers to generate interest in the product unhindered
by price considerations).
Are there joint product pricing considerations?
What are the non-price costs of purchasing the product? (e.g.: travel time to the store, wait time in the store,
disagreeable elements associated with the product purchase - dentist -> pain, fishmarket -> smells)
What sort of payments should be accepted? (cash, check, credit card, barter) Pricing
What a price should do
A well chosen price should do three things:
• achieve the financial goals of the company (e.g., profitability)
• fit the realities of the marketplace (Will customers buy at that price?)
• support a product's positioning and be consistent with the other variables in the marketing mix
• price is influenced by the type of distribution channel used, the type of promotions used, and the quality of the
• price will usually need to be relatively high if manufacturing is expensive, distribution is exclusive, and the
product is supported by extensive advertising and promotional campaigns
• a low price can be a viable substitute for product quality, effective promotions, or an energetic selling effort
by distributors
From the marketer's point of view, an efficient price is a price that is very close to the maximum that customers are
prepared to pay. In economic terms, it is a price that shifts most of the consumer surplus to the producer. A good
pricing strategy would be the one which could balance between the price floor (the price below which the
organization ends up in losses) and the price ceiling (the price beyond which the organization experiences a no
demand situation).
There are numerous terms and strategies specific to pricing:
Effective price
The effective price is the price the company receives after accounting for discounts, promotions, and other
Line Pricing
Line Pricing is the use of a limited number of prices for all product offerings of a vendor. This is a tradition started in
the old five and dime stores in which everything cost either 5 or 10 cents. Its underlying rationale is that these
amounts are seen as suitable price points for a whole range of products by prospective customers. It has the
advantage of ease of administering, but the disadvantage of inflexibility, particularly in times of inflation or unstable
Loss leader
A loss leader is a product that has a price set below the operating margin. This results in a loss to the enterprise on
that particular item in the hope that it will draw customers into the store and that some of those customers will buy
other, higher margin items.
Promotional pricing
Promotional pricing refers to an instance where pricing is the key element of the marketing mix.
Price/quality relationship
The price/quality relationship refers to the perception by most consumers that a relatively high price is a sign of
good quality. The belief in this relationship is most important with complex products that are hard to test, and
experiential products that cannot be tested until used (such as most services). The greater the uncertainty surrounding
a product, the more consumers depend on the price/quality hypothesis and the greater premium they are prepared to
pay. The classic example is the pricing of Twinkies, a snack cake which was viewed as low quality after the price
was lowered. Excessive reliance on the price/quantity relationship by consumers may lead to an increase in prices on
all products and services, even those of low quality, which causes the price/quality relationship to no longer apply.
Premium pricing
Premium pricing (also called prestige pricing) is the strategy of consistently pricing at, or near, the high end of the
possible price range to help attract status-conscious consumers. The high pricing of premium product is used to
enhance and reinforce a product's luxury image. Examples of companies which partake in premium pricing in the
marketplace include Rolex and Bentley. As well as brand, product attributes such as eco-labelling and provenance
(e.g. 'certified organic' and 'product of Australia') may add value for consumers[1] and attract premium pricing. A
component of such premiums may reflect the increased cost of production. People will buy a premium priced
product because:
1. They believe the high price is an indication of good quality;
2. They believe it to be a sign of self worth - "They are worth it;" it authenticates the buyer's success and status; it is
a signal to others that the owner is a member of an exclusive group;
3. They require flawless performance in this application - The cost of product malfunction is too high to buy
anything but the best - example : heart pacemaker.
Demand-based pricing
Demand-based pricing is any pricing method that uses consumer demand - based on perceived value - as the central
element. These include: price skimming, price discrimination and yield management, price points, psychological
pricing, bundle pricing, penetration pricing, price lining, value-based pricing, geo and premium pricing. Pricing
factors are manufacturing cost, market place, competition, market condition, quality of product.
Multidimensional pricing
Multidimensional pricing is the pricing of a product or service using multiple numbers. In this practice, price no
longer consists of a single monetary amount (e.g., sticker price of a car), but rather consists of various dimensions
(e.g., monthly payments, number of payments, and a downpayment). Research has shown that this practice can
significantly influence consumers' ability to understand and process price information [2]
Nine Laws of Price Sensitivity & Consumer Psychology
In their book, The Strategy and Tactics of Pricing, Thomas Nagle and Reed Holden outline 9 laws or factors that
influence how a consumer perceives a given price and how price-sensitive s/he is likely to be with respect to
different purchase decisions: [3] [4]
1. Reference Price Effect Buyer’s price sensitivity for a given product increases the higher the product’s price
relative to perceived alternatives. Perceived alternatives can vary by buyer segment, by occasion, and other
2. Difficult Comparison Effect Buyers are less sensitive to the price of a known / more reputable product when
they have difficulty comparing it to potential alternatives.
3. Switching Costs Effect The higher the product-specific investment a buyer must make to switch suppliers, the
less price sensitive that buyer is when choosing between alternatives.
4. Price-Quality Effect Buyers are less sensitive to price the more that higher prices signal higher quality. Products
for which this effect is particularly relevant include: image products, exclusive products, and products with
minimal cues for quality.
5. Expenditure Effect Buyers are more price sensitive when the expense accounts for a large percentage of buyers’
available income or budget.
6. End-Benefit Effect The effect refers to the relationship a given purchase has to a larger overall benefit, and is
divided into two parts: Derived demand: The more sensitive buyers are to the price of the end benefit, the more
sensitive they will be to the prices of those products that contribute to that benefit. Price proportion cost: The
price proportion cost refers to the percent of the total cost of the end benefit accounted for by a given component
that helps to produce the end benefit (e.g., think CPU and PCs). The smaller the given components share of the
total cost of the end benefit, the less sensitive buyers will be to the component's price.
7. Shared-cost Effect The smaller the portion of the purchase price buyers must pay for themselves, the less price
sensitive they will be.
8. Fairness Effect Buyers are more sensitive to the price of a product when the price is outside the range they
perceive as “fair” or “reasonable” given the purchase context.
9. The Framing Effect Buyers are more price sensitive when they perceive the price as a loss rather than a forgone
gain, and they have greater price sensitivity when the price is paid separately rather than as part of a bundle.
Pricing is the most effective profit lever.[5] Pricing can be approached at three levels.The industry, market, and
transaction level.
Pricing at the industry level focuses on the overall economics of the industry, including supplier price changes
and customer demand changes.
Pricing at the market level focuses on the competitive position of the price in comparison to the value
differential of the product to that of comparative competing products.
Pricing at the transaction level focuses on managing the implementation of discounts away from the reference,
or list price, which occur both on and off the invoice or receipt.
Pricing tactics
Micromarketing is the practice of tailoring products, brands (microbrands), and promotions to meet the needs and
wants of microsegments within a market. It is a type of market customization that deals with pricing of
customer/product combinations at the store or individual level.
Pricing mistakes
Many companies make common pricing mistakes. Bernstein's article "Supplier Pricing Mistakes"[6]
several which include:
Weak controls on discounting
Inadequate systems for tracking competitor selling prices and market share
Cost-Up pricing
Price increases poorly executed
Worldwide price inconsistencies
Paying sales representatives on dollar volume vs. addition of profitability measures
Price System
Product life cycle management
Value pricing
Product sabotage
Price elasticity of demand
Time based pricing
Suggested retail price
Purchasing power
Psychological pricing
Options pricing
Group buy
Cost the limit of price
[1] Paull, John, 2009, The Value of Eco-Labelling (http:/ / orgprints. org/ 16980/ 1/ 16980. pdf), VDM Verlag, ISBN 3639154959
[2] Estelami, H: "Consumer Perceptions of Multi-Dimensional Prices", Advances in Consumer Research, 1997.
[3] Nagle, Thomas and Holden, Reed. The Strategy and Tactics of Pricing. Prentice Hall, 2002. Pages 84-104.
[4] Mind of Marketing, "How your pricing and marketing strategy should be influenced by your customer's reference point" (http:/ / www.
mindofmarketing. net/ 2008/ 05/ whats-your-customers-reference-point. html)
[5] Dolan, Robert J. and Simon, Hermann (1996). Power Pricing. The Free Press. ISBN 0-684-83443-X.
[6] Bernstein, Jerold: "Use Suppliers Pricing Mistakes", Control, 2009.
[7] Control Global (http:/ / www. controlglobal. com/ articles/ 2009/ SuppliersMistakes0906. html)
External links and further reading
• William Poundstone, Priceless: The Myth of Fair Value (and How to Take Advantage of It) Hill and Wang, 2010
Engineering New Product Success: the New Product Pricing Process at Emerson Electric. A case study by Jerry
Bernstein and David Macias. As published in Industrial Marketing Management. (http:/ / valuepg. com/ Articles/
EngineeringNew ProductSuccess.PDF)
Positioning (marketing)
Positioning (marketing)
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the
minds of their target market for its product, brand, or organization.
Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the
collective minds of the target market.
De-positioning involves attempting to change the identity of competing products, relative to the identity of your own
product, in the collective minds of the target market.
The original work on Positioning was consumer marketing oriented, and was not as much focused on the question
relative to competitive products as much as it was focused on cutting through the ambient "noise" and establishing a
moment of real contact with the intended recipient. In the classic example of Avis claiming "No.2, We Try Harder",
the point was to say something so shocking (it was by the standards of the day) that it cleared space in your brain and
made you forget all about who was #1, and not to make some philosophical point about being "hungry" for business.
The growth of high-tech marketing may have had much to do with the shift in definition towards competitive
positioning. An important component of hi-tech marketing in the age of the world wide web is positioning in major
search engines such as Google, Yahoo and Bing, which can be accomplished through Search Engine Optimization ,
also known as SEO. This is an especially important component when attempting to improve competitive positioning
among a younger demographic, which tends to be web oriented in their shopping and purchasing habits as a result of
being highly connected and involved in social media in general.
Positioning (marketing)
Although there are different definitions of Brand Positioning, probably the most common is: identifying a market
niche for a brand, product or service utilizing traditional marketing placement strategies (i.e. price, promotion,
distribution, packaging, and competition).
Also positioning is defined as the way by which the marketers creates impression in the customers mind.
Positioning is a concept in marketing which was first introduced by Jack Trout ( "Industrial Marketing" MagazineJune/1969) and then popularized by Al Ries and Jack Trout in their bestseller book "Positioning - The Battle for
Your Mind." (McGraw-Hill 1981)
This differs slightly from the context in which the term was first published in 1969 by Jack Trout in the paper
"Positioning" is a game people play in today’s me-too market place" in the publication Industrial Marketing, in
which the case is made that the typical consumer is overwhelmed with unwanted advertising, and has a natural
tendency to discard all information that does not immediately find a comfortable (and empty) slot in the consumers
mind. It was then expanded into their ground-breaking first book, "Positioning: The Battle for Your Mind," in which
they define Positioning as "an organized system for finding a window in the mind. It is based on the concept that
communication can only take place at the right time and under the right circumstances" (p. 19 of 2001 paperback
What most will agree on is that Positioning is something (perception) that happens in the minds of the target market.
It is the aggregate perception the market has of a particular company, product or service in relation to their
perceptions of the competitors in the same category. It will happen whether or not a company's management is
proactive, reactive or passive about the on-going process of evolving a position. But a company can positively
influence the perceptions through enlightened strategic actions.
Positioning Statement (As written in the highly revered book Crossing the Chasm. Copyright 1991, by Geoffrey
Moore, HarperCollins Publishers) For (target customer) Who (statement of the need or opportunity) The (product
name) is a (product category) That (statement of key benefit – that is, compelling reason to buy) Unlike (primary
competitive alternative) Our product (statement of primary differentiation)
Differentiation in the context of business is what a company can hang its hat on that no other business can. For
example, for some companies this is being the least expensive. Other companies credit themselves with being the
first or the fastest. Whatever it is a business can use to stand out from the rest is called differentiation. Differentiation
in today’s over-crowded marketplace is a business imperative, not only in terms of a company’s success, but also for
its continuing survival.*
Brand positioning process
Effective Brand Positioning is contingent upon identifying and communicating a brand's uniqueness, differentiation
and verifiable value. It is important to note that "me too" brand positioning contradicts the notion of differentiation
and should be avoided at all costs. This type of copycat brand positioning only works if the business offers its
solutions at a significant discount over the other competitor(s).
Generally, the brand positioning process involves:
1. Identifying the business's direct competition (could include tertiary players that offer your product/service
amongst a larger portfolio of solutions)
2. Understanding how each competitor is positioning their business today (e.g. claiming to be the fastest, cheapest,
largest, the #1 provider, etc.)
3. Documenting the provider's own positioning as it exists today (may not exist if startup business)
4. Comparing the company's positioning to its competitors' to identify viable areas for differentiation
5. Developing a distinctive, differentiating and value-based brand positioning statement, key messages and
customer value propositions.
Positioning (marketing)
Product positioning process
Generally, the product positioning process involves:
1. Defining the market in which the product or brand will compete (who the relevant buyers are)
2. Identifying the attributes (also called dimensions) that define the product 'space'
3. Collecting information from a sample of customers about their perceptions of each product on the relevant
4. Determine each product's share of mind
5. Determine each product's current location in the product space
6. Determine the target market's preferred combination of attributes (referred to as an ideal vector)
7. Examine the fit between:
• The position of your product
• The position of the ideal vector
8. interest and started a conversation, you'll know you're on the right track.
Positioning concepts
More generally, there are three types of positioning concepts:
1. Functional positions
• Solve problems
• Provide benefits to customers
• Get favorable perception by investors (stock profile) and lenders
2. Symbolic positions
• Self-image enhancement
• Ego identification
• Belongingness and social meaningfulness
• Affective fulfillment
3. Experiential positions
• Provide sensory stimulation
• Provide cognitive stimulation
Measuring the positioning
Positioning is facilitated by a graphical technique called perceptual mapping, various survey techniques, and
statistical techniques like multi dimensional scaling, factor analysis, conjoint analysis, and logit analysis.
Repositioning a company
In volatile markets, it can be necessary - even urgent - to reposition an entire company, rather than just a product line
or brand. When Goldman Sachs and Morgan Stanley suddenly shifted from investment to commercial banks, for
example, the expectations of investors, employees, clients and regulators all needed to shift, and each company
needed to influence how these perceptions changed. Doing so involves repositioning the entire firm.
This is especially true of small and medium-sized firms, many of which often lack strong brands for individual
product lines. In a prolonged recession, business approaches that were effective during healthy economies often
become ineffective and it becomes necessary to change a firm's positioning. Upscale restaurants, for example, which
previously flourished on expense account dinners and corporate events, may for the first time need to stress value as
a sale tool.
Positioning (marketing)
Repositioning a company involves more than a marketing challenge. It involves making hard decisions about how a
market is shifting and how a firm's competitors will react. Often these decisions must be made without the benefit of
sufficient information, simply because the definition of "volatility" is that change becomes difficult or impossible to
• Trout, J., (1969) ""Positioning" is a game people play in today’s me-too market place", Industrial Marketing,
Vol.54, No.6, (June 1969), pp. 51–55.
• Ries, A. and Trout,J. (1981) Positioning, The battle for your mind, Warner Books - McGraw-Hill Inc., New York,
1981, ISBN 0-446-34794-9
• Trout, J. and Rivkin, S. (1996) The New Positioning : The latest on the worlds #1 business strategy, McGraw Hill,
New York, 1996, ISBN 0-07-065291• Moore, G. (1991) Crossing the Chasm, HarperCollins Publishers, 1991.
• Levi, K. (2007) "Differentiate or Diminish: The Art and Necessity of Business Positioning", (March 2007), p.9
Promotion (marketing)
Promotion (marketing)
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Promotion is one of the four elements of marketing mix (product, price, promotion, place). It is the communication
link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's
purchasing decision.[1]
The following are two types of promotion:
1. Above the line promotion: Promotion in mass media (e.g. TV, radio, newspapers, internet, mobile phones, and,
historically, illustrated songs) in which the advertiser pays an advertising agency to place the advertisement
2. Below the line promotion: All other promotion. Much of this is intended to be subtle enough for the consumer to
be unaware that promotion is taking place. E.g. sponsorship, product placement, testimonials, sales promotion,
merchandising, direct mail, personal selling, public relations, trade shows
The specification of five elements creates a promotional mix or promotional plan. These elements are personal
selling, advertising, sales promotion, direct marketing, and publicity.[2] A promotional mix specifies how much
attention to pay to each of the five subcategories, and how much money to budget for each. A promotional plan can
have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity,
positioning, competitive retaliations, or creation of a corporate image. Fundamentally, however there are three basic
objectives of promotion. These are:[3]
1. To present information to consumers as well as others
2. To increase demand
3. To differentiate a product.
Promotion (marketing)
There are different ways to promote a product in different areas of media. Promoters use internet advertisement,
special events, endorsements, and newspapers to advertise their product. Many times with the purchase of a product
there is an incentive like discounts, free items, or a contest. This is to increase the sales of a given product.
The term "promotion" is usually an "in" expression used internally by the marketing company, but not normally to
the public or the market - phrases like "special offer" are more common. An example of a fully integrated, long-term,
large-scale promotion are My Coke Rewards and Pepsi Stuff. The UK version of My Coke Rewards is Coke Zone.
[1] Kurtz, Dave. (2010). Contemporary Marketing Mason, OH: South-Western Cengage Learning.
[2] Rajagopal. (2007) Marketing Dynamics: Theory and Practice. New Delhi, India: New Age International. Retrieved April 5, 2010, from NJIT
EBook Library: http:/ / www. njit. eblib. com. libdb. njit. edu:8888/ patron/ FullRecord. aspx?p=437711
[3] Kurtz, Dave. (2010). Contemporary Marketing Mason, OH: South-Western Cengage Learning.
Outline of marketing
Outline of marketing
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Marketing refers to the social and managerial processes by which products, services and value are exchanged in
order to fulfil individuals' or group's needs and wants. These processes include, but are not limited to, advertising,
promotion, distribution, and sales.
The following outline is provided as an overview of and topical guide to marketing:
Marketing fundamentals
Main article: Marketing
Business model
Core competency
• Customer lifetime value (CLV)
• Customer relationship management (CRM)
• Economies of scope
• End-user
• Experience curve effects
Outline of marketing
• Market
• Market segment
• Market share
• Marketing
• Business Marketing
• Marketing Effectiveness
• Marketing mix
• Marketing myopia
• Marketing orientation, also called customer focus or marketing concept
• Target market
Sustainable competitive advantage
• Value chain
• Value migration
Branches of marketing
Direct marketing •
Multi-level marketing •
Services marketing
• Sponsorship
Subdisciplines and components of marketing
Consumer behavior
Marketing management •
Marketing paradigms
Relationship marketing
Network marketing
Diversity marketing
Evangelism marketing
Consumer Culture Theory (CCT)
Marketing research •
Marketing strategy •
Product management
Promotion (marketing)
Outline of marketing
Customer experience management (CEM)
Brand experience •
Customer interface •
CEM integration
CEM organization
Experiential innovation •
Experiential marketing
Marketing strategies
Market dominance strategies
Porter generic strategies
Mass customization
Vendor lock-in
Scenario planning
Growth strategies
Main articles: Growth strategies and Growth Platforms
Aggressiveness strategies
Horizontal integration
Innovation strategies
Profit impact on marketing strategy
Vertical integration
Marketing warfare strategies
• Defensive marketing warfare strategies
• Flanking marketing warfare strategies
• Guerrilla marketing warfare strategies
• Guerrilla marketing
• Offensive marketing warfare strategies
History of marketing
Main article: History of marketing
• History of advertising
General marketing concepts
Consumer behavior
• Aspirational age
• Aspirational Brand
• Buyer decision processes
• Prospect theory
• Loss aversion
• Decoy effect
• Time marketing
• Choice Modelling
• Demographics
Experiential platform
Experiential world
Outline of marketing
• Demographic profile
• Lifestyle
• Maslow's hierarchy of needs
Direct marketing
Database marketing
Direct Marketing Association
Multi-level marketing
Pyramid scheme
Large Group Awareness Training (LGAT) •
Specialty catalogs
• Drop shipping
• Grey marketing
• Logistics
• Logistic engineering
• Retail
• Convenience store
• Department store
• List of department stores
Dollar store
Retailers' cooperative
Shopping mall
• List of supermarkets
• Supply chain
• Supply chain management
• Wholesale
• Wholesaler
Retail outlets
Convenience store
Department store
List of department stores •
Marketing management
Marketing plan
Management loose
Strategic planning
Implementation and control
Dollar store
Retailers' cooperative
Shopping mall
List of supermarkets
Outline of marketing
Marketing research
Master of Marketing Research •
Experimental techniques
Observational techniques
Qualitative marketing research
Concept testing
Focus group
Innovation game
Data analysis techniques used in marketing research
Choice Modelling
Cluster analysis
Conjoint analysis
Cross tab
Discriminant analysis
Factor analysis
Intent scale translation
Logit analysis
Multi dimensional scaling
Preference-rank translation
Preference regression
Industry or market research
Competitor analysis •
Quantitative marketing research
Statistical surveys
Questionnaire construction
Simple random sampling
Systematic sampling
Statistical surveys
Stratified sampling
Cluster sampling
Multistage sampling
Nonprobability sampling
Ecological model of competition •
Environmental scanning
Porter 5 forces analysis
SWOT Analysis
Outline of marketing
Cluster sampling
Multistage sampling •
Nonprobability sampling •
Simple random sampling •
Stratified sampling
Systematic sampling
Choice Modelling
Competitor indexing
Cost-plus pricing
• Break even analysis
• Cost-plus pricing with elasticity considerations
• Markup
• Discounts and allowances
• Loyalty card
• Loss leaders
• Geographical pricing and price zoning
• Penetration pricing
• Price wars
• Joint product pricing
• Price
• Odd price
• Price discrimination
• Price skimming
• Two part tariff
Price elasticity of demand
Price points
Pricing objectives
Pricing for profit maximization
Psychological pricing
Rate of return pricing
Transfer pricing
Variable pricing and real-time pricing
Willingness to pay
Product management
Product differentiation
Product life cycle management
• Diffusion
• Technology acceptance model •
Crossing the Chasm
Technology lifecycle
• Disruptive technology
Life cycle cost analysis
Planned obsolescence
Product line
Whole product
Product portfolio
B.C.G. Analysis
G.E. Multi Factoral analysis
Contribution margin analysis
Product bundling
Outline of marketing
Brand management
Brand alliances
Brand equity
Private brand
Corporate branding
Family branding
Individual branding
Corporate identity
• Genericized trademark
• List of fictional brands
Packaging and labelling
Mandatory labelling
New product development
Research and development •
Conjoint analysis
Quality function deployment •
List of product failures
Discriminant analysis •
Factor analysis
Multi dimensional scaling •
Perceptual mapping
Preference regression
Advertising campaign
Advertising slogan
Ambush marketing
Community marketing
Billboard (advertising)
Nielsen ratings
Product placement
Q Score
Mass media
Mind share
Sex in advertising
Subliminal advertising
Television commercial
Marketing communications
Integrated Marketing Communications •
Kelman's source characteristics •
Marketing communications planning framework
Corporate image
• Cause marketing •
Doing a Ratner
Public relations
Trade fairs
Undercover marketing
Viral marketing
Word of mouth and buzz
Outline of marketing
Sales and sales promotion
Negotiation •
• Shill
Product churning •
Sales techniques
Sales force management
Sales force management system
Services marketing
Borderless Selling
Gaps analysis
Complaints handling
Experience economy
Service sector
Service mark
Persons infuential in the field of marketing
• Seth Godin
Marketing lists
Main article: List of marketing topics
List of information technology management topics
List of international trade topics
List of product failures
List of management topics
List of human resource management topics
List of economics topics
List of finance topics
List of accounting topics
List of information technology management topics
List of production topics
List of international trade topics
List of business law topics
List of business ethics, political economy, and philosophy of business topics
List of business theorists
List of economists
External links
• Marketing dictionary [1]
[1] http:/ / www. buseco. monash. edu. au/ mkt/ dictionary/
Alliance marketing
Alliance marketing
Alliance marketing is the term used to describe marketing activity undertaken by more than one entity, jointly to
promote and sell a concept, product or service which has benefit to all the stakeholders.
An example of Alliance Marketing is a Destination Alliance where hotels, restaurants and attractions come together
to jointly fund and market their destination. The Stakeholders understand that by marketing their destination jointly
and pooling their resources that the marketing impact they can achieve will be stronger and benighted all
stakeholders in that location.
Other examples can be found on
types of alliances which are created.
who list a number of articles which give further insight into the
Alliance Marketing is similar to Joint Venture Marketing except it does not always involve the creation of a
company and brand in its own right to sell and market the product or service.
Alliance marketing is also used where a group of companies often in new technology areas come together to sell the
technology concept. An alliance will always have a common theme which all stakeholders can benefit from.
[1] http:/ / www. zdnet. co. uk/ tsearch/ marketing+ alliance. htm
Ambush marketing
Ambush marketing can be defined as a marketing strategy wherein the advertisers associate themselves with, and
therefore capitalize on, a particular event without paying any sponsorship fee.[1] The Macmillan English Dictionary
defines ambush marketing as a marketing strategy in which a competing brand connects itself with a major sporting
event without paying sponsorship fee.[2] According to McCarthy, ambush marketing is a type of marketing by a
company that is not an official sponsor of an event, but which places advertisements using the event, to induce
customers to pay attention to the advertisement.[3] From a theoretical perspective, ambush marketing refers to a
company's attempt to capitalize on the goodwill, reputation, and popularity of a particular event by creating an
association with it, without the authorization or consent of the necessary parties.[4]
The word "ambush" as used in the expression ambush marketing, means "an attack from a hidden position" and is
derived from the old French verb embuschier, having the meaning "to place in a wood."[5] The term "ambush
marketing" was coined by the famous marketing strategist Jerry Welsh, while he was working as the manager of
global marketing efforts for the American Express Company in the 1980s.[6]
Types of ambush marketing
"Direct" ambush marketing
• "Predatory" ambushing: Intentional false claims to official sponsorship by a non-sponsor and/or intentional
false denial by a non-sponsor concerning a market competitor's official sponsorship, in each case with the intent
to confuse consumers and gain market share from the competing official sponsor.
• "Coattail" ambushing: The attempt by a brand to directly associate itself with a property or event by "playing
up" a connection to the property/event that is legitimate but does not involve financial sponsorship.
Ambush marketing
• Ambushing via trademark/likeness infringement: The intentional unauthorized use of protected intellectual
property. Such properties can include the logos of teams or events, or making use of unauthorized references to
tournaments, teams or athletes, words and symbols.
• Ambushing "by degree": Marketing activities by an official sponsor above and beyond what has been agreed on
in the sponsorship contract. For example, an "ambush by degree" of a sports event may involve a sponsor's
handing out free promotional T-shirts without the permission of the sports league supervising the event. That
sponsor may have already covered the stadium with its signs, or the sports league or participating teams may have
made an earlier agreement – perhaps even an exclusive one – to let a different sponsor hand out shirts. In either
case, ambush by degree clutters the available marketing space; takes advantage of the participating teams and
supervising league to a greater extent than they permitted; and dilutes the brand exposure of official sponsors,
including the other promotional efforts of the ambushing company (hence the alternative term
"Indirect" ambush marketing
• Ambushing "by association": The use of imagery or terminology not protected by intellectual-property laws to
create an illusion that an organization has links to a sporting event or property — This form differs from direct
"coattail" ambushing in that there exists no legitimate connection between the event/property and from direct
ambush by infringement in that the sponsored event/property has no property rights in the images and/or words
that create the illusion.
• Values-based ambushing: Tailoring by a non-sponsor of its marketing practices to appeal to the same values or
involve the same themes as do the event and/or its promotion, such that audiences attracted to the event or its
marketing will likewise be attracted to the non-sponsor's marketing — Essentially a reversal from "push" to "pull"
of the causal processes through which direct "coattail ambushers" create sponsor/event-unapproved mental
association with their products, this form of ambushing differs from "ambushing by association" in that the
ambushing business begins by observing the event's promotional scheme and drawing inferences as to its existing
thematic content, as opposed to observing the event's audience and creating new thematic content in hopes that
consumers will associate the event with the thematic content created.
• Ambushing "by distraction": Setting up a promotional presence at or near an event, albeit without making
specific reference to the event itself, its imagery, or its themes, in order to take advantage of the general public's
attention toward the event and the audience members' awareness of their surroundings — This form of ambush
amounts to "free riding" upon the positive externality that the event creates for the surrounding area by
"anchoring" public and individual attention there; see also "Saturation ambushing" under "Incidental"
ambush marketing.
• "Insurgent" ambushing: The use of surprise street-style promotions (blitz marketing) at an event or near
enough to it that the ambushing business can identify and target audience members — The "active" version of
"passive" ambushing by distraction, insurgent ambushing not only takes advantage of positive externalities but
creates negative externalities by intruding upon attendees' experiences of the event and detracting from those
experiences' quality (cf. the distinction in biology between commensalism and parasitism).
• "Parallel property" ambushing: The creation or sponsorship of an event or property that bears qualitative
similarity to the ambush target and competes with it for the public's attention — An application of "ambushing
by distraction" in which the ambusher-marketed product is the event/property itself, parallel-property
ambushing does not intrude upon the experience of audience members (who remain free to attend whichever
event or patronize whichever property they deem more attractive), but it does divert audience dollars and
attendance figures from the preexisting event/property, interfering with the efforts of that event's/property's
financial backers to recover their largely fixed production costs.
Ambush marketing
"Incidental" ambush marketing
• Unintentional ambushing: It is possible for media coverage to make passing mention of, e.g., the manufacturer
of an athlete's equipment/clothing or the provider of a service used by the event's technical staff or in-person
audience. Although in most cases most members of an event's mass-media audience will not infer that the
mentioned business is an official sponsor of the event, such that the mention is harmless "free publicity" for the
non-sponsoring business, it is possible that some broadcast-audience members will at some point draw some
inference of official sponsorship.
• "Saturation" ambushing: "Saturation ambushers" increase their broadcast-media advertising and marketing at
the time of an event but make no reference to the event itself and avoid any associative imagery or suggestion —
Essentially a form of "ambushing by distraction" attenuated by the absence of advertisers' physical proximity to
the event and their resulting lack of contact with in-person audience members, saturation ambushing merely
capitalizes on the increased broadcast media attention and television audiences surrounding the event.[7]
Impacts of Ambush marketing
Increasing cost of sponsorships: The increasing cost of sponsorships has also increased sponsor's emphasis on
return-on-investment. If sponsored events do not give exclusivity, the sponsor's interest on sponsorship property will
be lost and the damage will extend to the whole sponsorship market. Yet when that exclusivity is lost, the value of
sponsorship is also lost. When a company engages in ambush marketing the exclusivity intended to be conferred
through sponsorship to a sponsor is lost. Hence, the value of sponsorship is also lost. As it is an undeniable fact that
corporate sponsorship is one of the biggest money-spinning sources of revenue for the event organizers, the loss in
sponsorship value will affect the financial strength of an event organizer.
Transgression on the intellectual property rights: Even when the ambush marketers are not making any direct
references to the protected intellectual property rights, they in effect transgress those intellectual property rights by
attempting to capitalize on such hard earned goodwill from an event. Direct and indirect references to the event
symbol or the event itself are just different means for achieving illegal transgression on the rights of event
organizers. Moreover, sponsors cannot get the return they anticipated.
Notable events
• 1984 Olympics; Kodak sponsors TV broadcasts of the Games as well as the US track team despite Fujifilm being
the official sponsor.
• 1988 Summer Olympics; Fujifilm sponsors the Games despite Kodak being the official sponsor.
• 1992 Summer Olympics in Barcelona; Nike sponsors press conferences with the US basketball team despite
Reebok being the official sponsor. During ceremonies, the players covered their Reebok logos.
• 1994 Winter Olympics; American Express sponsors the Games despite Visa being the official sponsor.
• 1996 Atlanta Olympics; sprinter Linford Christie wore contact lenses embossed with the Puma logo at the press
conference preceding the 100 metres final, despite Reebok being the official sponsor.
• 1996 Atlanta Olympics; Messages On Hold strategically placed a banner within the camera frame as US runner
Jon Drummond prepares for the opening leg of 4x100 relay final. The moment is broadcast live across the world.
• 1996 Cricket World Cup; Pepsi ran a series of advertisements titled "nothing official about it" targeting the
official sponsor, Coca-Cola.
• 1998 FIFA World Cup; Nike sponsored a number of teams competing in the Cup despite Adidas being the official
• 2000 Sydney Olympics; Qantas Airlines’ slogan "The Spirit of Australia" sounds strikingly similar to the Games’
slogan "Share the Spirit." despite Ansett Air being the official sponsor.
Ambush marketing
• 2003 Cricket World Cup; Indian players threatened to strike over concerns that the anti-ambush marketing rules
were too strict. Of particular concern was the length of time before and after the cup that players were not allowed
to endorse a rival to one of the official sponsors. Players argued that if they had pre-existing contracts that they
would be in breach of them if they were to accept the ICC's rules.
• 2005-06 Australian cricket season; Hardware brand Selleys ran advertisements during the cricket telecast with a
fictional cricket called 'Dave'. At the end of the commercial read a caption: "Selleys- Proud sponsor of the
cricket", despite not officially sponsoring the Australian cricket team or telecast. The company was forced to
change their ads to avoid confusion.
• 2006 FIFA World Cup; fans of the Netherlands were made to remove Bavaria Brewery's leeuwenhosen because
Budweiser was the official beer sponsor. See also the 2010 FIFA World Cup for a similar incident involving the
same two brands.
• 2008 Beijing Olympics; entire countries were tuned into the Opening Ceremonies, and worldwide, millions more
saw former Olympic gymnast Li Ning light the torch and learned that he owns a shoe company with the same
name, a direct rival of Adidas and quite famous in China, but not an official Olympic sponsor.[8]
• 2010 Super Bowl XLIV; Canadian gay dating site ManCrunch was accused of ambush marketing when it
submitted a controversial advertisement to CBS for air during the game. The theory is that ManCrunch produced
the ad knowing that it would never be accepted and hoped the controversy would drum up the intended attention
without having to pay the nearly US$3,000,000 price for an advertisement during the game.[9]
• 2010 Winter Olympics; Team USA ice hockey goaltender Ryan Miller was ordered to remove the catchphrase
"Miller Time" from his helmet under the IOC's ambush marketing rules, due to it also being the slogan of Miller
Lite beer (though Miller Lite did not pay for the slogan).[10] Likewise, the U.S. bobsled team was forced to
remove the name of its #1 sled, "Night Train," due to it being the name of a low-end fortified wine (again, the
usage of the phrase was coincidental).[11]
• 2010 FIFA World Cup;
• A South African budget airline Kulula pulled back its ambush ad after a FIFA complaint that it infringed its
trademark during the 2010 World Cup.'s ad described the firm as the "Unofficial National Carrier
of the You-Know-What". It also had pictures of stadiums, vuvuzelas and national flags. But FIFA said the
airline could not use the symbols - even the word "South Africa",'s spokeswoman said. FIFA,
however, said the images taken together were "ambush marketing".[12] However, Kulula followed this up with
further advertising more obliquely linking itself with the World Cup, making action by FIFA more difficult.
• Also during the tournament, in an incident similar to the 2006 World Cup, 2 Dutch women were arrested for
ambush advertising and 36 women ejected from the stadium when they were spotted wearing short orange
dresses made by the Dutch brewery Bavaria on 14 June 2010. As in the 2006 tournament, Anheuser–Busch
InBev's Budweiser was the official beer of the event.[13] The association between the dresses and the Dutch
brewery had been established by Sylvie van der Vaart modelling one of them.[14] ITV media pundit Robbie
Earle was fired from his role when it was claimed by FIFA that he had sold tickets meant for family and
friends on to the Dutch beer company.[15] [16]
Ambush marketing
Future of ambush marketing
For the 2011 Rugby World Cup and the 2015 Cricket World Cup, New Zealand is planning to enact laws to combat
ambush marketing, according to former Sports Minister Trevor Mallard.[17]
The London Olympic Games and Paralympic Games Act 2006 contains provisions to attempt to restrict ambush
advertising at the 2012 Summer Olympics.
• Skildum-Reid, Kim. The Ambush Marketing Toolkit, McGraw-Hill, September 2007. ISBN 0-07-013808-7.
Jacqueline A. Leimer, 'Ambush Marketing: Not Just an Olympic-Sized Proglem', 2(4) Intell. Prop. Strategist 1, 3(1996).
http:/ / www. macmillandictionary. com/ New-Words/ 050815-ambush-marketing. htm
J. Thomas McCarthy, McCarthy on Trademarks and Unfair Competition, Forth Edition
Lori L. Bean, 'Ambush Marketing: Sports Sponsorship Confusion and the Lanham Act', 75 BUL Rev. 1099, 1100(1995).
http:/ / www. macmillandictionary. com/ New-Words/ 050815-ambush-marketing. htm
http:/ / www. poolonline. com/ bios/ biojwelsh. html
[7] Simon Chadwick and Nicholas Burton, "New Definitions for Ambush Marketing", The Wall Street Journal ( - Business News &
Financial News, 2010 October 20, available at http:/ / online. wsj. com/ article/ SB10001424052970204731804574391102699362862. html.
[8] The Greatest Free Ad Ever (http:/ / blogs. rockymountainnews. com/ 2008_summer_olympics_blog/ archives/ 2008/ 08/
the-greatest-free-ad-ever. html#)
[9] http:/ / www. fancast. com/ blogs/ 2010/ tv-news/ cbs-rejects-gay-themed-super-bowl-ad/
[10] Benigni, Adam (2010-02-16). Ryan Miller's Mask Causes Olympic Controversy (http:/ / www. wgrz. com/ news/ local/ story.
aspx?storyid=74526& catid=37). WGRZ.
[11] http:/ / www. wgrz. com/ sports/ story. aspx?storyid=74554& catid=4
[12] "Fifa orders SA airline to pull ad" (http:/ / news. bbc. co. uk/ 2/ hi/ africa/ 8576220. stm). BBC News. 19 March 2010. .
[13] Gibson, Owen (16 June 2010). "World Cup 2010: Women arrested over 'ambush marketing' freed on bail" (http:/ / www. guardian. co. uk/
football/ 2010/ jun/ 16/ fifa-world-cup-ambush-marketing). The Guardian (London). .
[14] Kelly, Jon (17 June 2010). "How ambush marketing ambushed sport" (http:/ / news. bbc. co. uk/ 2/ hi/ uk_news/ magazine/ 8743881. stm).
BBC News Magazine (BBC). . Retrieved 2010-06-21.
[15] http:/ / news. sky. com/ skynews/ Home/ UK-News/
World-Cup-2010-Robbie-Earle-Sacked-By-ITV-Over-Holland-v-Denmark-Ticket-Claims/ Article/
[16] "Robbie Earle sacked over World Cup tickets" (http:/ / news. bbc. co. uk/ 1/ hi/ entertainment_and_arts/ 10322048. stm). BBC News. 16
June 2010. . Retrieved 16 June 2010.
[17] http:/ / www. iht. com/ articles/ ap/ 2006/ 09/ 06/ sports/ AS_SPT_New_Zealand_Ambush_Marketing. php
Article marketing
Article marketing
Article marketing is a type of advertising in which businesses write short articles related to their respective
industry. These articles are made available for distribution and publication in the marketplace. Each article has a bio
box and byline (collectively known as the resource box) that include references and contact information for the
author's business. Well-written content articles released for free distribution have the potential to increase the
business credibility within its market. Also it helps in attracting new clients. These articles are often syndicated by
other websites, and published on multiple websites.
Traditional Article Marketing
Article marketing has been used by professionals for nearly as long as mass print has been available. In paper-print
form (as opposed to online forms), article marketing is utilized commonly by business owners as a means of
obtaining free press space. A local business provides useful content to the newspaper that too free of cost and in
return the newspaper prints the business contact information with the required article. Because newspapers and other
traditional media are expected to present content on limited budgets, this arrangement is generally advantageous for
all parties involved.
For example, an accounting firm may market itself by writing an article titled "The Top 10 Ways to Avoid Being
Audited" and offering it to the local newspapers several weeks prior to tax season. Similarly, a roofing company may
offer radio stations a concise article titled "How to Avoid Ice Damage to Your Roof this Winter" shortly before the
winter season.
Internet Article Marketing
Internet article marketing, is an Internet marketing approach to subtly promote products and services online via
article directories. Article directories having good web page rank receives excessive quantity of site visitors and are
thought-about authority sites by search engines, which often leads to receiving good quantity of traffic. These
directories then go on PageRank to the author's website and in addition sends traffic from readers.
Internet marketers will typically attempt to maximize the results of an article advertising campaign by submitting
their articles to a number of article directories. However, most of the major search engines want to filter duplicate
content to stop the identical content material from appearing multiple times in searches. Some marketers attempt to
circumvent this filter by creating a number of variations of an article, known as article spinning. By doing this, one
article can theoretically acquire site visitors from a number of article directories.
Having your content featured on niche blogs and focused content sites run and managed by others is a popular form
of article marketing. Becoming a Guest Blogger on these sites introduces the author to interested parties that are
otherwise unreachable.
Most forms of search engine optimization and Internet marketing require a domain, internet hosting plan, and
promoting budget. However, article advertising makes use of article directories as a free host and receives traffic by
way of organic searches due to the listing's search engine authority. This can be very useful to new internet
entrepreneurs because it does not require a big budget.
Article marketing
Commonly Accepted Article Structure and Format
When publishing on the internet the most commonly accepted practice is to write articles having catchy title using
relevant keywords and 250-500 words in the body of the article. Since the primary goal behind article marketing is to
get search engine traffic, authors generally incorporate relevant keywords or keyphrases in their articles. The
generally accepted keyword density for most article directories is about 2 to 3% and anything above that can be
considered as keyword stuffing. Most article directories currently do not accept HTML tags in either title or in the
body of the article.
Article video marketing
Article Video marketing
Article video marketing is a new type of internet marketing and advertising in which business create 2-5 minute
short videos about specific topics using content from articles and other text sources. The videos are then uploaded to
various video sharing websites like youtube for distribution and exposure.
Converting articles into videos
There are several ways to for turning articles into videos. The most traditional way is by creating a powerpoint
presentation of the original article, which is basically transforming the article text into an animated slideshow.
Relevant pictures are then added to the slideshow and voice is recorded over each slide to create a voice-over
narration for the video. Finally, the presentation is recorded using a screen capture software like Camtasia and the
slideshow is now turned into a video that can be uploaded to a video sharing site like YouTube for sharing.
Advantages of Article Video marketing
Article Video marketing is an extension of Article marketing but serves as an alternate medium for businesses to
convey their message to a wider audience, and get more exposure. Being an audio-visual medium, articles turned
into videos also reduce the time required to read the articles.
Related Software
• Microsoft Powerpoint
• Windows Movie Maker
• Article Video Robot
Cause marketing
Cause marketing
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Cause marketing or cause-related marketing refers to a type of marketing involving the cooperative efforts of a
"for profit" business and a non-profit organization for mutual benefit. The term is sometimes used more broadly and
generally to refer to any type of marketing effort for social and other charitable causes, including in-house marketing
efforts by non-profit organizations. Cause marketing differs from corporate giving (philanthropy) as the latter
generally involves a specific donation that is tax deductible, while cause marketing is a marketing relationship not
necessarily based on a donation.
One of the first "cause marketing" campaigns occurred in 1976 through a partnership between the Marriott
Corporation and the March of Dimes. Marriott’s objective was to generate highly cost-effective public relations and
media coverage for the opening of their 200-acre (0.81 km2) family entertainment center, Marriott’s Great America
in Santa Clara, CA. The March of Dimes's objective was to greatly increase fundraising while motivating the
collection of pledges by the program’s deadline. The promotion was conducted simultaneously in 67 cities
throughout the Western United States. It exceeded all goals to become the most successful promotion in the history
of Chapters West of the March of Dimes, while providing hundreds of thousands of dollars in free publicity and
stimulating the record-breaking opening of the Marriott entertainment complex.
The program was conceived and directed by Bruce Burtch, who went on to become a nationally-recognized catalyst
for cause marketing programs. Burtch is credited with coining the phrase, "Do Well by Doing Good", which was his
Cause marketing
answer to the CEO of a major corporate foundation when asked what his goal in life was in 1977.
Another of the first examples of a "cause-related marketing" campaign was initiated in 1979 by Rosica, Mulhern &
Associates for Famous Amos cookies[1] . In this campaign, Wally Amos became the National Spokesperson for the
Literacy Volunteers of America.[2] According to the organization, Wally has alerted more people to the illiteracy
problem than any other person in history. This strategic cause-marketing tie-in helped to tell the Famous Amos
Cookie story while maintaining visibility and is responsible for many new and expanded literacy programs. This case
study is now used in university classrooms nationwide as an example of successful "cause-related marketing". In
1982 Nancy Brinker, founder of Susan G. Komen for the Cure was an early pioneer of cause marketing, allowing
millions to participate in the fight against breast cancer through businesses that share Komen's commitment to end
the disease.[3] [4] [5]
Cause Related Marketing has been in existence for decades, indeed centuries, as the early Lever example indicates.
The recent interest in Cause Related Marketing is generally argued to stem from American Express, who apparently
coined the phrase in 1983. Following various pilot schemes in 1981, American Express developed a campaign which
donated funds to a number of different non-profit organizations as part of the San Francisco Arts Festival.
Essentially every time someone used an American Express Card in the area, a 2 cent donation was triggered and
each time new members applied for a card a larger contribution was made. The marketing goals that American
Express had for this programme were apparently exceeded. Card usage was reported as having increased
significantly and relationships between American Express and their merchants also improved as a result of the
promotion. From the charity's point of view, despite being a short-term campaign, $108,000 was raised, making a
significant contribution to their work. The terms "cause-related marketing" and "cause marketing" continued to grow
in usage since that time. In more recent years the term has come to describe a wider variety of marketing initiatives
based on the cooperative efforts of business and charitable causes. [6]
According to a report published by onPhilanthropy[7] , cause marketing sponsorship by American businesses is
rising at a dramatic rate. Citing an IEG, Inc. study, $1.11 billion was spent in 2005, an estimated $1.34 billion will be
spent in 2006, and the number is expected to rise further in 2007. As an update, IEG [8] reported that $1.44 billion
was spent in 2007 and $1.52 billion in 2008. Due to the recession, growth is expected to slow in 2009 with the
projections being $1.57 billion total to be spent on cause marketing.
Cause-related marketing is a powerful marketing tool that business and nonprofit organizations are increasingly
leveraging. According to the Cone Millennial Cause Study in 2006[9] , 89% of Americans (aged 13 to 25) would
switch from one brand to another brand of a comparable product (and price) if the latter brand was associated with
"good cause". The same study also indicated that a significant percentage surveyed would prefer to work for a
company that was considered socially responsible. This can be linked to the increase in workplace giving programs.
Earlier studies by Cone indicate an upward trend in the number of Americans who associate their own buying habits
with cause marketing as well as an expectation that those companies to be "good corporate citizens"[10] . These
studies also show a substantial increase from just before to just after the September 11, 2001 attacks.
Numerous other studies[11] have also been conducted to show that cause-related marketing has helped to increase a
company's profits. For example, in the cause marketing campaign by American Express (to which the term "cause
marketing" is attributed), the company saw a 17% increase in new users and a 28% increase in card usage.
Cause marketing
The possible benefits of cause marketing for nonprofit organizations include an increased ability to promote the
nonprofit organization's cause via the greater financial resources of a business, and an increased ability to reach
possible supporters through a company's customer base. The possible benefits of cause marketing for business
include positive public relations, improved customer relations, and additional marketing opportunities.
Online cause marketing
Although originally a marketing strategy that occurred offline, cause marketing has been conducted more and more
through online channels in the last decade. This is due in part to the increasing percentage of households with
internet connections. As with other types of marketing campaigns, companies can leverage online marketing
channels along with other offline channels such as print and media. (Sometimes referred to as integrated marketing).
Online charity auctions
In recent years, online auctions have been used in cause marketing strategies using a number of different online
auction platforms. Companies have created programs to help sellers and corporations donate a percentage of their
sales to a nonprofit orgranization through the use of auctions. Businesses and nonprofit organizations can also use
the program for cause marketing and nonprofit fundraising programs.
Cause marketing can take on many forms, including:
Product, service, or transaction specific
Promotion of a common message
Product licensing, endorsements, and certifications
Local partnerships
Employee service programs
• One example of cause-marketing would be the partnership of Yoplait's "Save Lids to Save Lives" campaign in
support of the Susan G. Komen for the Cure. The company packages specific products with a pink lid that
consumers turn in, and in turn Yoplait donates 10 cents for each lid.
• An example of a nonprofit certification of a product (business) includes the American Heart Association's stamp
of approval on Cheerios, the popular breakfast cereal. The American Heart food certification program grants use
of its "Heart Check" icon and name to dozens of cereals and juices meaning that that product meets the
Associations' low-fat, low-cholesterol standards[12]
• In 2007, Singapore Airlines launched a cause marketing campaign attracting over 35 million unique visitors
across 23 countries to bring awareness to Doctors Without Borders. With the launch of the world's first A380,
Singapore Airlines—with the assistance of Vonality Inc—launched an online auction for all seats on the historic
first flight all in support of charity.
• Launched in early 2006, Product Red[13] is an example of one the largest cause-related marketing campaigns to
date given the number of companies and organizations involved as participants as well as its reach worldwide. It
is also an example of a cause marketing campaign that is also a brand on its own. Product Red was created to
support The Global Fund to Fight AIDS, Tuberculosis & Malaria (aka "The Global Fund") and includes
Cause marketing
companies such as Apple Computer, Motorola, Giorgio Armani, and The Gap as participants.
• Wired Italia, US and UK in November '09 launched a campaign in order to nominate the Internet for the 2010
Nobel Prize
The Manifesto [14]
• Since 1998 the UK based AquAid Water Coolers [15] has been donating 5.5% of turnover to supply clean drinking
water to people in Africa via the two charities Christian Aid and Pump Aid. To date they have donated more than
£5,000,000 and their business success has led to a number of their competitors setting up other schemes to bring
water to people in the Third World
The Record article, "He spread word on literacy aid"
Wally Amos - AEI Speakers Bureau (http:/ / www. aeispeakers. com/ print. php?SpeakerID=24)
http:/ / www. pjstar. com/ business/ x29009655/ Brinker-new-CEO-of-Komen-of-the-Cure
http:/ / ww5. komen. org/ KomenNewsArticle. aspx?id=6442451015
http:/ / jerusalem. usconsulate. gov/ pr-03272007b. html
http:/ / books. google. com/ books?id=olRdvkb-wx0C& printsec=frontcover& dq=Cause+ marketing& hl=en&
ei=nTL_Tc71PMvwsgb62cDxDQ& sa=X& oi=book_result& ct=result& resnum=2& ved=0CC4Q6AEwATgK#v=onepage& q& f=false
[7] onPhilanthropy: Articles: SPECIAL REPORT: Consumer Philanthropy (http:/ / www. onphilanthropy. com/ site/
News2?page=NewsArticle& id=6863)
[8] IEG Sponsorship Report - Forecast Recession Slams Brakes On Sponsorship Spending (http:/ / www. sponsorship. com/ iegsr/ 2008/ 12/ 22/
10386. asp)
[9] Civic-Minded Millennials Prepared to Reward or Punish Companies Based on Commitment to Social Causes (http:/ / www. csrwire. com/
PressRelease. php?id=6641)
[10] http:/ / www. thinkbeforeyoupink. org/ PDF/ ConeCorpCitizen. pdf
[11] Proving that Cause Marketing is a Win-Win - Cause Marketing Forum - Cause Related Marketing Source (http:/ / www.
causemarketingforum. com/ page. asp?ID=345)
[12] IEG's Guide to Corporate / Nonprofit Relationships (http:/ / www. sponsorship. com/ resources/
ieg-s-guide-to-corporate-nonprofit-relationships. aspx)
[13] (RED) (http:/ / www. joinred. com/ default. asp)
[14] http:/ / internetforpeace. org/ manifesto. cfm
[15] http:/ / www. aquaidwatercoolers. co. uk
External links
• List of Noted Organizations and Foundations promoting Business-Nonprofit Partnerships (http://www.
• Cause Related Marketing Survey Report (
• Where Does Cause Marketing Go From Here - IEG Sponsorship Report Article (
Close Range Marketing
Close Range Marketing
Close range marketing, commonly referred to as CRM, is a form of proximity marketing. Close Range Marketing
is an emerging technology that creates a new way for businesses to both promote goods and services and involve
their customers. It commonly uses bluetooth technology to submit content, though other signal types such as Wifi
and FM are becoming more common.
Cloud marketing
Cloud Marketing refers to any and all marketing efforts that take place on the Internet, aka the Cloud provided as a
The terminology is best understood in the context of the history of Internet marketing terminology.
SEO stands for Search Engine Optimization. SEM stands for Search Engine Marketing. Over time, both
abbreviations came to be slightly misleading. SEO now refers to the optimization of websites for all organic listings,
or the listings for which one does NOT pay an advertising fee to the search engine. This is the section of a SERP
(search engine results page) that 'oganically' or 'naturally' come up when you search for a specific term. So it might
be said that SEO is the art of getting the appropriate page of your website to the top of the search engines when
people are looking for your products or services.
SEM or Search Engine Marketing, would seem intuitively to encompass SEO issues, but again over time, it has
come to refer to the paidside of Internet Marketing, specifically PPC (Paid Per Click advertising).
In the broadest sense, one can understand the term, "Cloud Marketing" to encompass both issues, as well as a wider
set of organic marketing issues, including social media marketing (SMM), mobile media marketing (MMM), banner
annd contextual advertising, even hosting and domain issues. If the marketing effort is performed or results in online
expression and is provided by a professional in the field as a service, with detailed online reporting, it's called 'Cloud
Marketing', now literally meaning 'marketing in the Cloud".
Communal marketing
Communal marketing
Communal marketing refers to a marketing practice that incorporates public involvement in the development of an
advertising/marketing campaign. A "communal advertising" campaign invites consumers to share their ideas or
express their articulation of what the brand means to them through their own personal stories, with the use of print
media, film or audio. The resulting "consumer generated content" is then incorporated into the campaign. Finally, the
result of this collaboration is showcased, often in a cross-media campaign, to invite the extended community of
like-minded individuals to share in the results, thereby creating a communal bond between the "brand champions as
advertisers" and other individuals who have a natural affinity with what the brand has to offer. The end result
provides the brand with a way to create a deeper connection with their core market, while also opening up new
pathways to extend the relationship to new customers.
Communal marketing is not the same as viral marketing or word of mouth advertising, however, the end result of a
communal marketing campaign achieves a high level of publicity within high relevance communities. These
"communities" are extremely critical to the success of a brand, and normally follow the 80/20 rule, where 20% of the
brand's customers account for 80% of its sales.
In communal marketing, the very act of reaching out to consumers to invite them in as co-collaborators and
co-creatives, is a fundamental component of the marketing campaign. The construct naturally lends itself to other
"communal" marketing activities, like "communal branding" and "communal research." The trend has been
incorporated into consumer-based, "virtual" advertising agencies, such as Adcandy, [1] which uses
consumer-generated content exclusively.
Anytime a brand reaches out to its audience to invite them in to become co-collaborators in the development of an
advertising campaign, they are participating in a "communal branding" effort. Whenever marketing decisions are the
end result of communing with the brand's audience to help drive the development of a campaign, they are engaging
in "communal research." For example, Peter Jackson, in the making of The Lord of the Rings, reached out to loyal
followers of the book to help weigh in on some major directorial decisions.
The practice of communal marketing has been in use for several years with the emergence of communal forms of
information sharing including weblogs, online message boards, podcasts, interactive broadband TV, and other new
media that has been adopted by consumers at the grass roots level to establish community forums for discussing their
customer experiences.
[1] http:/ / www. adcandy. com
Community marketing
Community marketing
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Community marketing is a strategy to engage an audience in an active, non-intrusive prospect and customer
conversation. Whereas marketing communication strategies such as advertising, promotion, PR, and sales all focus
on attaining customers, Community Marketing focuses on the needs of existing customers. This accomplishes four
things for a business:
Connects existing customers with prospects
Connects prospects with each other
Connects a company with customers/prospects to solidify loyalty
Connects customers with customers to improve product adoption, satisfaction, etc.
There are two types of community marketing:
• Organic (created by users with no company intervention)
• Sponsored (fostered and hosted by a company)
Recent skepticism building among consumers as a result of blatant advertising and other unethical communications
has affected the success of the sponsored form of Community Marketing. Continuing success in community
marketing strategies has been found in engaging and cultivating the natural communities that form around their
Community marketing
• Bi-directional communication with customers - Resulting in increased feedback, identification of customer needs,
and a customer-focused product development
• Reduced Communication Barriers - Easily introduce messaging to customer audience regarding new products,
Public relations strategies, or Damage control (news)
• Identify, engage, and leverage Advocates - Allow enthused and loyal customers to benefit your overall marketing
through Word of mouth and Knowledge Management that reduces the load on your internal support mechanisms
(particularly for tech products).
• Gaining Trusted Advisor Status - Reduced skepticism towards your marketing message as a result of a
demonstrated openness, transparency, and commitment to customer focus through Community Marketing
involvement. Results in an "ownership" of the discussion surrounding a product/service that reduces negativity
and positions the providing company as a resource, rather than simply a vendor.
Tools used in community marketing
• Online Social Networking - The chief medium for Community Marketing revolves around Web 2.0 interactivity
such as Internet forums, Wiki's, Social networks, Blogs, and related syndication (RSS).
• Community-Specific Tools & Features - To encourage community participation, many companies offer tools and
features exclusively to "members" of the community. These include Webcasts, Podcasts, and email bulletins. The
key factor, however, in using these tools is the value of the message. Communities revolve around user-valuable
messages (information, support, tips & tricks, etc.) and NOT promotional messages.
• Community Infrastructure and Governance - Some communities engage the participation of their customers in the
role of elected officials, advisory board members, and volunteer "guru" status in order to exemplify key customers
in their communities.
• Partnerships - Although this is often a purely Public relations strategy, some people view partnerships with
non-profit consumer advocacy organizations to be a Community Marketing effort.
AUGI [1]
Xbox [2]
Mozilla [3]
[1] http:/ / www. augi. com
[2] http:/ / www. xbox. com/ en-US/ community
[3] http:/ / www. mozilla. org/ community/
( The Community Action Network
( Community Marketing Group
( The Sensible City - creators of the Community-Oriented Marketing System
( Community Oriented Marketing: The Definitive Guide to Enlightened
Business Development by Ian Bryan (February 2004 - ISBN 0-595-30881-3)
• (
• ( The Customer Interaction Manifesto
• ( Influence of Marketing
• ( Your People, LLC. See also community-building marketing
Consumer-generated marketing
Consumer-generated marketing
Consumer Generated Marketing is a term used when average people create advertising for companies. This can
include images, video, blogs, etc. Examples include Diet Coke and Mentos videos, the I've Got a Crush On Obama
video, Star Wars fan films. For example, Joel Moss Levinson won 11 consumer generated marketing contests, and
earned more than $200,000 in money and prizes, by creating corporate jingles and short commercials.[1] [2] The
commercials are an example of user-generated content.
[1] Clifford, Stephanie (October 27, 2008). "Finding a Gold Mine in Digital Ditties" (http:/ / www. nytimes. com/ 2008/ 10/ 28/ business/ media/
28video. html?em). New York Times. . Retrieved 2008-10-28. "So far, Mr. Levinson, a college dropout with dozens of failed jobs on his
résumé, has won 11 contests — earning more than $200,000 in money and prizes. His success has made him into the digital age version of
Evelyn Ryan, the woman from Defiance, Ohio, who supported her family by winning commercial jingle contests in the 1950s and ’60s."
[2] "Internet Crush: Joel Moss Levinson" (http:/ / nymag. com/ daily/ intel/ 2008/ 10/ internet_crush_joel_moss_levin. html). New York
Magazine. . Retrieved 2008-10-28.
External links
iMedia (
iMedia (
Hbsweek (
Cross-media marketing
Cross media marketing is a form of cross-promotion in which promotional companies commit to surpassing the
traditional advertisements and decide to include extra appeals to their offered products..[1] The material can be
communicated by any mass media such as e-mails, letters, web pages, or other recruiting sources. This method can
be extremely successful for publishers because the marketing increases the ad’s profit from a single advertiser.
Furthermore, this tactic generates a good liaison between the advertiser and the publisher, which also boosts the
One of the first steps to integrate cross media tactics
effectively into a specific project is to evaluate and
examine a customer’s preferences.
• Scheduling – When should I contact the customer?
• Rate – What is the correct time frame to leave
between the delivery of my first, second and third
message to the customer?
• Pacing - How frequently should I check up on the
• Incidence – If a customer is not responding, how
long should I continue to pursue the offer?
Typical "junk mail".
Cross-media marketing
The first notable occurrence of cross media marketing occurred in 1977 with the release of the film Saturday Night
Fever and its respective soundtrack. The single "How Deep Is Your Love" by The Bee Gees was originally meant to
be recorded by Yvonne Elliman for an unrelated album, but it was decided by RSO Records to have The Bee Gees
record it and released in an effort to promote the film. The release of the film promoted not only the released single
but the entire soundtrack.
More recent examples include companies promoting music artist's concerts, followed by having one of the artist's
songs used in a commercial for the company.
Commandments of Cross Media Marketing
Cross media marketing programs are difficult to advertise; therefore, Damien Marchi, who was involved in the
second season of Big Brother in France, created eight commandments to cross-media marketing success.
1. Give users access to exclusive content not seen on television. During a TV or movie production usually more
material is shot than can be shown. Users like this unused content exclusively, for example on the Internet,
through a club.
2. Interact with the show- Give the power to the audience. Involve the audience by having them vote, ask questions
and by polling them
3. Make the show even more known. Use besides television the other media to keep the users in touch with the
4. Increases users’ loyalty. Loyalty of fans can be stimulated by a fan club and viral games.
5. Recreate the atmosphere. Levy the atmosphere of the TV show to another medium.
6. Continue the show on the web. Use the TV show to drive the other devices
7. Enhance the watching experience. Stimulate simultaneous use of media (browse the Internet when watching TV
for example).
8. Use multiple devices. A multi-device system built around a TV show allows channel to increase the number of
revenue streams.[3]
Real Time Personalization and Variable Data Printing
Real Time personalization (RTP) is an innovative way to looking at cross media marketing. RTP has the ability to
see who visits each webpage. In addition, if companies have the ability to see a website viewed by a potential
customer, then the company can quickly personlize what the customer is looking and make appeals to a certain
product. After a real time personalization search, a business plan is created to fit each potential customer. When a
potential buyer is looking at a company's advertisement, a popup add usually appears. Every product that a customer
accepts, five to seven linked advertisement pages popup. RTP captures these acceptance rates, locate advertising
company, and supplies the information necessay for the next step in the business plan. Variable Data Printing (VDP)
constantly modernizes and enhances the communication between the marketing company and their customers. In
addition, if a campaign is personalized and directed to a specific audience, then more customers will typically buy
the product. Therefore, VDP creates a cycle of increases profitability, raising brand awareness, and gaining
prospective sales. All of these elements are needed to enhance the marketing of products.[4]
Cross-media marketing
Customized Offers
For mail, companies use the information collected from their customer analysis to provide the individuals with
personalized letters or upcoming offers. On the internet, customization permits users to have access to exclusive
messaging. In addition, the VDP assists the marketing process by talking to each specific group of customers and
giving them personal attention rather than treating them all the same way. This consumer and company process is
very common in large online retailers such as The more personalized an offer is to the target audience,
the more prone they are to react positively.[5]
Some of the data that can be investigated to strengthen personalizing the offer includes:
• Personal information including a the customer’s age, gender, and living environment (small town or city)
• Calculating the customer’s expiration date of a magazine subscription is very important because then the
marketing company is able send the individual a notice about re-subscribing.
• Keeping track of a customer’s involvement and acceptance rate in the company’s offers is very essential. If a
customer is providing the company with constant business than sending them an offer for in store redemption is
common courtesy.
One of the major problems with cross-media marketing is the creative development level. Getting one group to
collectively use their creativity and communicate with the other areas of work is very difficult when one team is
working on television, another is involved in designing the print creative, another is developing radio ads, and yet
another is putting together the Internet program. Although the messaging elements are not very hard to compose,
creating a campaign that is completely mutually dependent, with each branch of the project fulfilling their task, is
quite impossible when the creative teams are split. Therefore, to achieve some sort of cohesion, teams must
communicate and corporate with each branch.[6]
Cross Media Marketing Corporation and Lawsuits
The Cross Media Marketing Corporation is a company uses e-mail messages or telephone calls, which are
personalized to each specific customer, to sell their product. In 2002, federal regulators filed a criticism that the
corporation’s magazine division was breaching marketing regulations. The Federal Trade Commission stepped in
and claimed the company withheld information, misrepresented subscription lengths and prices, and billed customers
for magazines that they did not order. The Corporation was sentenced by the F.T.C. to pay a hefty fine for their
violation. A year later, in 2003, The Cross Media Marketing Corporation was forced to lay off 300 people and
agreed to a $1.1 settlement fee with the F.T.C for ignoring customer’s desires to cancel their subscriptions and for
misrepresenting the costs of packaging. Currently, the company is liquidating its possessions.[7]
"'Alto Clothing'": Alto Clothing is an online company that sells garments for tall males. In 2005, Alto opened a
cross-media marketing effort with the assistance of an agency called Neoco. The clothing company was looking to
increase sales and publicity of the line; therefore, they created an ecommerce site. Alto plans on using a mixture of
viral, press, and online activity. The ads will be shown on high profile sites such as Time Out. In addition, an email
campaign will be sent to 100,000 men.
'"Andres and Henriette'" In 2003, a financial marketing company in Denmark series on the internet entitled Anders
and Henriette, as a cross-media marketing scheme to promote their financial assistance program. The production was
about a young couple that was going to live together. The series of eight episodes was a major success because it
attracted 300,000 individuals, in which ninety percent of them viewed the site again. Consequently, the campaign
made the name of the financial foundation a well-known brand name.[8]
Cross-media marketing
Jones 2004, p. 3.
Michelson Managing Partners, p. 2 .
ACTeN 2007, p. 12 .
Michelson Managing Partnet, p. 2.
Michelson Managing Partnet, p. 4.
Andrew Dimock, p. 9.
New York Times
Media and Publishing, p. 5-7.
• ACTeN- Anticipating Content Technology Needs. "Cross-media." E-content Report 8. 7 Mar. 2007. Bloomberg
• "Cross Media Unit Faces Complaint From the F.T.C." New York Times 11 Apr. 2002: C2.
• "Cross Media Marketing." Direct Marketing Specialists. 2002. Data-Dynamics Inc. 14 Nov. 2008
• Dimock, Andrew. "What Happened to Cross Media Marketing." 1 Aug. 2002. 6 Nov. 2008
Jones, Gareth. "Volvo uses a online for special service deal." Centaur Communications 11 Nov. 2008: 7.
• "Dow Jones Launches Division For Cross-Media Marketing to Drive Advertising Sales." 18 Oct. 2004. Simba
Information. 14 Nov. 2008 <>.
• “Media and Publishing”. Encyclopedia Brtiannica. 2008. Encyclopedia Britannica Online. 10 Nov. 2008 http://
• Michelson Managing Partner, James D. "1:1 Cross Media Marketing 2008." 2005. JFM Concepts LLC. 14 Nov.
2008 <>.
Customer advocacy
Customer advocacy
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Customer advocacy is a specialized form of customer service in which companies focus on what is best for the
customer. It is a change in a company's culture that is supported by customer-focused customer service and
marketing techniques.
Customer advocacy business model
A customer advocacy policy encompasses all aspects of customer contact, including products, services, sales and
complaints. Some examples of a customer advocacy approach are suggesting a product even if the profit margin is
less for the company, setting service call appointments based on the customer's, not the company's preferred hours,
or recommending a competitor's product because it better meets the customer's needs.
Role of the customer advocate
Customer advocates are facilitators between customers and the company. They are trained in cross-functional roles
and empowered to provide customers with assistance in all areas of the business. The role of the customer advocate
is three-fold:
• To be the main contact for the customer in handling a question or problem and keeping the customer updated with
timely and frequent updates as to the progress of resolving the issue.
• To facilitate a resolution by bringing together the appropriate department heads.
Customer advocacy
• To implement a procedure that ensures the problem does not occur again or recommends products or services to
better meet customers' needs.
Measuring customer advocacy
Customer advocacy can be integrated into a company’s strategic goals and measured through customer satisfaction,
retention, and profitability.
• Customer Advocacy, March 2006 [1]
• Building trust and relationships through customer advocacy, 2005 [2]
[1] http:/ / www. customercentricity. biz/ PDFs/ Customer_Advocacy. pdf
[2] http:/ / www. theomcgroup. com/ omcpapers/ Building%20trust%20and%20relationships%20through%20customer%20advocacy. pdf
Database marketing
Database marketing is a form of direct marketing using databases of customers or potential customers to generate
personalized communications in order to promote a product or service for marketing purposes. The method of
communication can be any addressable medium, as in direct marketing.
The distinction between direct and database marketing stems primarily from the attention paid to the analysis of data.
Database marketing emphasizes the use of statistical techniques to develop models of customer behavior, which are
then used to select customers for communications. As a consequence, database marketers also tend to be heavy users
of data warehouses, because having a greater amount of data about customers increases the likelihood that a more
accurate model can be built.
There are two main types of marketing databases, 1) Consumer databases, and 2) business databases. Consumer
databases are primarily geared towards companies that sell to consumers, often abbreviated as B2C or BtoC.
Business marketing databases are often much more advanced in the information that they can provide. This is mainly
because business databases aren't restricted by the same privacy laws as consumer databases.
The "database" is usually name, address, and transaction history details from internal sales or delivery systems, or a
bought-in compiled "list" from another organization, which has captured that information from its customers.
Typical sources of compiled lists are charity donation forms, application forms for any free product or contest,
product warranty cards, subscription forms, and credit application forms.
The communications generated by database marketing may be described as junk mail or spam, if it is unwanted by
the addressee. Direct and database marketing organizations, on the other hand, argue that a targeted letter or e-mail
to a customer, who wants to be contacted about offerings that may interest the customer, benefits both the customer
and the marketer.
Some countries and some organizations insist that individuals are able to prevent entry to or delete their name and
address details from database marketing lists.
Database marketing
Database marketing emerged in the 1980s as a new, improved form of direct marketing. During the period traditional
"list broking" was under pressure to modernise, because it was offline and tape-based, and because lists tended to
hold limited data.[1] At the same time, with new technologies enabling customer responses to be recorded, direct
response marketing was in the ascendancy, with the aim of opening up a two-way communication, or dialogue, with
Robert D. "Bob" and Kate Kestnbaum were trailblazing pioneers of the new direct marketing, who were credited
with developing new metrics including customer lifetime value, and applying financial modelling and econometrics
to marketing strategies.[2] They founded Kestnbaum & Co, a consulting firm in 1967, and this was the training
ground for many of database marketing's leading thinkers, including Robert Blattberg, Rick Courtheaux and Robert
Shaw. Bob Kestnbaum was inducted into the DMA Hall of Fame in October 2002.
Kestnbaum collaborated with Shaw in the 1980s on several landmark online marketing database developments - for
BT (20 million customers), BA (10 million) and Barclays (13 million). Shaw incorporated new features into the
Kestnbaum approach, including telephone and field sales channel automation, contact strategy optimisation,
campaign management and co-ordination, marketing resource management, marketing accountability and marketing
analytics. The designs of these systems have been widely copied subsequently and incorporated into CRM and MRM
packages in the 1990s and later.[3]
The earliest recorded definition of Database Marketing was in 1988 in the book of the same name (Shaw and Stone
1988 Database Marketing):
"Database Marketing is an interactive approach to marketing, which uses the individually addressable
marketing media and channels (such as mail, telephone and the sales force): to extend help to a company's
target audience; to stimulate their demand; and to stay close to them by recording and keeping an electronic
database memory of the customer, prospect and all commercial contacts, to help improve all future contacts
and to ensure more realistic of all marketing."
Growth and evolution of database marketing
The growth of database marketing is driven by a number of environmental issues. Fletcher, Wheeler and Wright
(1991) [4] classified these issues into four main categories: (1) changing role of direct marketing; (2) changing cost
structures; (3) changing technology; and (4) changing market conditions.
• The move to relationship marketing for competitive advantage.
• The decline in the effectiveness of traditional media.
• The overcrowding and myopia of existing sales channels.
• The decline in electronic processing costs.
• The increase in marketing costs.
• The advent of new methods of shopping and paying.
• The development of economical methods for differentiating customer communication.
• The desire to measure the impact of marketing efforts.
• The fragmentation of consumer and business markets.
Shaw and Stone (1988) noted that companies go through evolutionary phases in the developing their database
marketing systems. They identify the four phases of database development as:
Database marketing
mystery lists;
buyer databases;
coordinated customer communication; and
integrated marketing.
Sources of data
Although organizations of any size can employ database marketing, it is particularly well-suited to companies with
large numbers of customers. This is because a large population provides greater opportunity to find segments of
customers or prospects that can be communicated with in a customized manner. In smaller (and more homogeneous)
databases, it will be difficult to justify on economic terms the investment required to differentiate messages. As a
result, database marketing has flourished in sectors, such as financial services, telecommunications, and retail, all of
which have the ability to generate significant amounts transaction data for millions of customers.
Database marketing applications can be divided logically between those marketing programs that reach existing
customers and those that are aimed at prospective customers.
Consumer data
In general, database marketers seek to have as much data available about customers and prospects as possible.
For marketing to existing customers, more sophisticated marketers often build elaborate databases of customer
information. These may include a variety of data, including name and address, history of shopping and purchases,
demographics, and the history of past communications to and from customers. For larger companies with millions of
customers, such data warehouses can often be multiple terabytes in size.
Marketing to prospects relies extensively on third-party sources of data. In most developed countries, there are a
number of providers of such data. Such data is usually restricted to name, address, and telephone, along with
demographics, some supplied by consumers, and others inferred by the data compiler. Companies may also acquire
prospect data directly through the use of sweepstakes, contests, on-line registrations, and other lead generation
Business data
For many business-to-business (B2B) company marketers, the number of customers and prospects will be smaller
than that of comparable business-to-consumer (B2C) companies. Also, their relationships with customers will often
rely on intermediaries, such as salespeople, agents, and dealers, and the number of transactions per customer may be
small. As a result, business-to-business marketers may not have as much data at their disposal as
business-to-consumer marketer are accustomed.
One other complication is that B2B marketers in targeting teams or "accounts" and not individuals may produce
many contacts from a single organization. Determining which contact to communicate with through direct marketing
may be difficult. On the other hand it is the database for business-to-business marketers which often includes data on
the business activity about the respective client.
These data become critical to segment markets or define target audiences, e.g. purchases of software license
renewals by telecom companies could help identify which technologist is in charge of software installations vs.
software procurement, etc. Customers in Business-to-Business environments often tend to be loyal since they need
after-sales-service for their products and appreciate information on product upgrades and service offerings. This
loyalty can be tracked by a database.
Sources of customer data often come from the sales force employed by the company and from the service engineers.
Increasingly, online interactions with customers are providing B2B marketers with a lower cost source of customer
Database marketing
For prospect data, businesses can purchase data from compilers of business data, as well as gather information from
their direct sales efforts, on-line sites, and specialty publications.
Analytics and modeling
Companies with large databases of customer information risk being "data rich and information poor." As a result, a
considerable amount of attention is paid to the analysis of data. For instance, companies often segment their
customers based on the analysis of differences in behavior, needs, or attitudes of their customers. A common method
of behavioral segmentation is RFM, in which customers are placed into subsegments based on the recency,
frequency, and monetary value of past purchases. Van den Poel (2003)[5] gives an overview of the predictive
performance of a large class of variables typically used in database-marketing modeling.
They may also develop predictive models, which forecast the propensity of customers to behave in certain ways. For
instance, marketers may build a model that rank orders customers on their likelihood to respond to a promotion.
Commonly employed statistical techniques for such models include logistic regression and neural networks.
Laws and regulations
As database marketing has grown, it has come under increased scrutiny from privacy advocates and government
regulators. For instance, the European Commission has established a set of data protection rules that determine what
uses can be made of customer data and how consumers can influence what data are retained. In the United States,
there are a variety of state and federal laws, including the Fair Credit Reporting Act, or FCRA, (which regulates the
gathering and use of credit data), the Health Insurance Portability and Accountability Act (HIPAA) (which regulates
the gathering and use of consumer health data), and various programs that enable consumers to suppress their
telephones numbers from telemarketing.
Advances in database marketing
While the idea of storing customer data in electronic formats to use them for database-marketing purposes has been
around for decades, the computer systems available today make it possible to gain a comprehensive history of client
behavior on-screen while the business is transacting with each individual, producing thus real-time business
intelligence for the company. This ability enables what is called one-to-one marketing or personalization.
Today's Customer Relationship Management (CRM) systems use the stored data not only for direct marketing
purposes but to manage the complete relationship with individual customer contacts and to develop more customized
product and service offerings. However, a combination of CRM, content management and business intelligence tools
are making delivery of personalized information a reality.
Marketers trained in the use of these tools are able to carry out customer nurturing, which is a tactic that attempts to
communicate with each individual in an organization at the right time, using the right information to meet that
client's need to progress through the process of identifying a problem, learning options available to resolve it,
selecting the right solution, and making the purchasing decision.
Because of the complexities of B2B marketing and the intricacies of corporate operations, the demands placed on
any marketing organization to formulate the business process by which such a sophisticated series of procedures may
be brought into existence are significant. It is often for this reason that large marketing organizations engage the use
of an expert in marketing process strategy and information technology (IT), or a marketing IT process strategist.
Although more technical in nature than often marketers require, a system integrator (SI) can also play an equivalent
role to the marketing IT process strategist, particularly at the time that new technology tools need to be configured
and rolled out.
New advances in cloud computing and marketing's penchant for both outsourcing services to third-party agencies
and avoiding involvement in the creation of complex technological tools has provided a fertile soil for Software as a
Database marketing
Service (SaaS) providers to centralize the marketing database under a hosting service model that incorporates
functions from CRM, content management and business intelligence under one offering to automate the marketing
Challenges and limitation of database marketing
While real-time business intelligence is a reality for select companies, it remains elusive to many as it is dependent
on these premises: the percentage of the business that is online, and the degree of level of sophistication of the
software. Technology companies like Google, Dell, and Apple, are most positioned to capitalize on this. For other
companies, more traditional methods still apply, either to maintain communication with an existing customer base
(retention) or building, acquiring or renting new databases (acquisition), with the latter being an established primary
driver for growth. A major challenge for databases is the reality of obsolescence - a subset of this is the lag time
between when data was acquired and when the database is used. This can be addressed by online and offline means
including traditional methods. An alternative approach is real-time proximity marketing for acquisition purposes.
[1] Stone, B (1997) Successful Direct Marketing Methods, NTC Business Books
[2] Direct Newsline Nov 18, 2002
[3] Shaw, R. and Stone, M. Database Marketing. New York: John Wiley & Sons, 1988.
[4] Fletcher, Keith, and Colin Wheeler, and Julia Wright. "Success in Database Marketing: Some Critical Factors." Marketing Intelligence &
Planning 10 (1992): 18-23.
[5] Van den Poel Dirk (2003), “ Predicting Mail-Order Repeat Buying: Which Variables Matter? (http:/ / econpapers. repec. org/ paper/
rugrugwps/ 03_2F191. htm)”, Tijdschrift voor Economie & Management, 48 (3), 371-403.
Further reading
• Baesens Bart, Stijn Viaene, Dirk Van den Poel, Jan Vanthienen, and Guido Dedene (2002), “ Bayesian Neural
Network Learning for Repeat Purchase Modelling in Direct Marketing (
rugrugwps/02_2F154.htm)”, European Journal of Operational Research, 138 (1), 191-211.
• Optimal Database Marketing, Drake & Drozdenko, Sage Publications (2002)
• Hughes, Arthur M. (2000), Strategic Database Marketing: The Masterplan for Starting and Managing a
Profitable Customer-Based Marketing Program, 2nd edition, McGraw-Hill, New York.
• David Shepard Associates (1999), The New Direct Marketing: How to Implement A Profit-Driven Database
Marketing Strategy, 3rd edition, McGraw-Hill, New York.
• Hillstrom, Kevin (2006), Hillstrom's Database Marketing, Direct Academy
• Peppers, Don and Rogers, Martha (1996), The One to One Future (One to One), Current.
• Prinzie Anita, Dirk Van den Poel (2005), " Constrained optimization of data-mining problems to improve model
performance: A direct-marketing application (",
Expert Systems with Applications, 29 (3), 630-640.
• Tapp, Alan (1998), Principles of Direct and Database Marketing, Trans-Atlantic Publications.
• Prenner, John (2000), ROI Driven Database Marketing, UC Press
• Van den Poel Dirk (2003), “ Predicting Mail-Order Repeat Buying: Which Variables Matter? (http://econpapers.”, Tijdschrift voor Economie & Management, 48 (3), 371-403.
• Munoz, Arturo F (2008), " Why Successful Marketing In A Recession Requires A Solid Marketing IT Process
Strategy ("
Database marketing
External links
• Federal Trade Commission (
• Medill IMC at Northwestern University (
• Master of Marketing Analysis at Ghent University (
Digital marketing
Digital marketing
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Digital Marketing is the promoting of brands using all forms of digital advertising channels to reach consumers.
This now includes Television, Radio, Internet, mobile, social media marketing and any other form of digital media.
Whilst digital marketing does include many of the techniques and practices contained within the category of Internet
Marketing, it extends beyond this by including other channels with which to reach people that do not require the use
of The Internet. As a result of this non-reliance on the Internet, the field of digital marketing includes a whole host of
elements such as mobile phones, sms/mms, display / banner ads and digital outdoor.
Previously seen as a stand-alone service in its own right, it is frequently being seen as a domain that can and does
cover most, if not all, of the more traditional marketing areas such as Direct Marketing by providing the same
method of communicating with an audience but in a digital fashion. Digital is now being broadened to support the
"servicing" and "engagement" of customers.
Digital marketing
Digital Marketing – Pull vs. Push
There are 2 different forms of digital marketing, each of which has its pros and cons.
Pull digital marketing technologies involve the user having to seek out and directly select (or pull) the content, often
via web search. Web site/blogs and streaming media (audio and video) are good examples of this. In each of these
examples, users have a specific link (URL) to view the content.
Digital Marketing and Power Users of the internet are an integral aspect to the United States economy. Interactive
Media is a form of art and creative inspiration.
• Since requests are inherently opt-in, the size of content is generally unlimited.
• No advanced technology required to send static content, only to store/display it.
• Considerable marketing effort required for users to find the message/content.
• Some types of marketing content may be blocked in mixed content scenarios (i.e.: Flash blockers)
Push digital marketing technologies involve both the marketer (creator of the message) as well as the recipients (the
user). Email, SMS, RSS are examples of push digital marketing. In each of these examples, the marketer has to send
(push) the messages to the users (subscribers) in order for the message to be received. In the case of RSS, content is
actually pulled on a periodic basis (polling), thus simulating a push.
• Faster delivery - push technologies can deliver content immediately as it becomes available.
• Consistent delivery - some push platforms have single content types, making it difficult for the user to block
content by type.
• Better targeting - since push technology usually justifies subscription, more specific marketing data may be
collected during registration, which allows for better targeting and more personalization.
• Better data - marketing data can be correlated to each request for content, allowing marketers to see information
such as user name as well as demographic and psychographic data.
• Smaller audience - push technology not implemented on common platforms generally need client and/or server
software before content can be created, distributed, and/or viewed.
• Higher cost - less popular platforms may have higher implementation costs.
• Lesser discoverability - smaller audiences mean fewer views mean less visibility in search engines.
Digital marketing
Digital Marketing and Multi-Channel Communications
While digital marketing is effective using one message type, it is much more successful when a marketer combines
multiple channels in the message campaigns. For example, if a company is trying to promote a new product release,
they could send out an email message or text campaign individually. This, if properly executed, could yield positive
results. However, this same campaign could be exponentially improved if multiple message types are implemented.
An email could be sent to a list of potential customers with a special offer for those that also include their cell phone
number. A couple of days later, a follow up campaign would be sent via text message (SMS) with the special offer.
Push and pull message technologies can also be used in conjunction with each other. For example, an email
campaign can include a banner ad or link to a content download. This enables a marketer to have the best of both
worlds in terms of their marketing method.
Digital Marketing Terms
Banner Ad
An advertisement that appears on a Web page, most commonly at the top (header) or bottom (footer) of the
page. Designed to have the user click on it for more information (see Microsite)
A blacklisted notice means that the message may not have been delivered due to be flagged on one of the
major lists that keep tabs of known spammers. Different ISPs use different blacklists to block mailings from
being delivered to their clients. It can be a temporary ban or a permanent one, depending upon the list.
A blocked notice means that the message did not get through due to being considered spam by the subscriber’s
ISP. This may be due to being on a blacklist or because the message contains a domain that is already being
Shortened from “web log” a blog is a user-generated Web site where entries are made in journal style and
displayed in a reverse chronological order.
A campaign is a specific message being sent to a specific group of recipients.
CAN-SPAM Act of 2003
The CAN SPAM ACT is a series of federal laws that must be followed by all email marketers. Those found in
violation of the laws can be subjected to major penalties.[1]
Click Through
The number of times people clicked on the links in your message. This is often referred to as CTR (Click
Through Rate). Note: you must have enabled click through tracking in the campaign in order for this to be
Search engine marketing Is a form of Internet marketing that seeks to promote websites by increasing their
visibility in search engine result pages (SERPs) through the use of search engine optimization, paid placement,
contextual advertising, and paid inclusion.[2]
Cost Per Click
Refers to the amount of money an advertiser pays search engines and other Internet publishers for a single
click on its advertisement that brings one visitor to its website.
Digital marketing
Digital Brand Engagement
Brand and consumer interaction through the Internet. This includes all aspects of dialogue through the social
web and on the brand's own website.
DMA Market
DMA stands for Designated Market Area, which is often associated with the entertainment industry. DMAs
are usually counties (or sometimes split counties) that contain a large population that can be targeted, such as
New York City, Los Angeles or Chicago.
Email Service Provider (ESP)
Outside companies that send bulk emails on behalf of their clients to prevent their messages as being labeled
as spam or blocked entirely.
False Positives
Legitimate messages being labeled as “spam”. Can cost companies potentially millions in potential lost
revenue if not dealt with correctly.
The Global Permanent Removal List consists of records that are automatically removed from a particular
database. Almost all email service providers (ESP) or multi-channel messaging companies maintain these lists
for their clients.
Instant Messaging
Instant messaging (often shortened to IM) is a type of communications service that enables you to create a
kind of private chat room with another individual in order to communicate in real time over the Internet.
Used in conjunction with SMS messages. A user types a short code and matching keyword in order to be
added to a mobile club or database.
A mini Web site design to promote a specific portion or brand from a larger corporate site. Used often with
contests or as a landing page for a specific promotion.
Open Rate
This is a ratio determined by the number of people who opened your email against the total number of people
to whom you sent the message. Typically, this number will be low for large campaigns and higher for more
targeted campaigns.
Opt-In List
Email marketers have databases of subscribers to their newsletters, featuring these subscribers' email addresses
and names. Such a list is known as an opt-in list (and is thus CAN-SPAM compliant; see above for info on the
CAN-SPAM act) because users choose to receive the emails. This is in contrast to spam email, which is
Personalization gives you the ability to create a customized message for each person in your database. Can be
addressed by first/last name, city, state, zip, etc.
RSS or Real Simple Syndication is technology designed to allow users to subscribe to a specific content feed
and be automatically alerted when new updates are available.
RSS Reader
Digital marketing
Application used to subscribe and monitor selected RSS content feeds.
Short Code
A short code is a 5 or 6 digit number that is used to send and respond to text messages. They can either be a
random set of numbers or a “vanity” number tied to a specific brand or number pattern.
SMS (Short Message Service) is a one-way text message sent via a cell phone. It is usually received via the
subscribers' text message inbox on their cell phone and can be a maximum of 160 characters per message.
Social Bookmarking
Social Bookmarking is a popular way to store, classify, share and search links that are combined into a single
site for easy access.
Social media optimization
The methodization of social media activity with the intent of attracting unique visitors to website content.
An email message that is unwanted by the recipient. Legitimate emails can sometimes be incorrectly identified
as spam and is a growing problem.
Streaming Technologies
Communication channel such as video and audio that is accessed online. Can be a pre-stored clip to access as
well as a live feed that is streamed like an online broadcast.
A person who signs up to receive messages from a particular company or entity.
Targeting allows you to send a message to people based on specific criteria from your subscriber database.
Voice Broadcast
Sending a pre-recorded voice messages to a large set of phone numbers at the time same. Can either be a voice
call (meaning the recipient must answer the call for the message to play) or voice mail (meaning the message
will play only if the recipient doesn’t answer )
A small graphical device that does a highly focused, often single, specific task. Web widgets can be embedded
in web pages or run on the desktop of a PC (Windows or Mac) using software such as Apple's Dashboard
software or Yahoo! Widgets Engine.
Web Video
Short promotional video clip, designed to be displayed on a website or many websites such as youtube.
[1] http:/ / www. ftc. gov/ bcp/ edu/ pubs/ business/ ecommerce/ bus61. shtm
[2] http:/ / en. wikipedia. org/ wiki/ Search_engine_marketing
Direct marketing
Direct marketing
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Direct marketing is a form of advertising that reaches its audience directly through multiple channels including
email, direct mail, social media, catalogs, online advertising, interactive television, etc. Businesses communicate
straight to the consumer with advertising techniques such as fliers, catalog distribution, promotional letters, and
street advertising.
Direct Advertising is a sub-discipline and type of marketing. There are two main definitional characteristics which
distinguish it from other types of marketing. The first is that it sends its message directly to consumers, without the
use of intervening commercial communication media. The second characteristic is the core principle of successful
Advertising driving a specific "call to action." This aspect of direct marketing involves an emphasis on trackable,
measurable, positive responses from consumers (known simply as "response" in the industry) regardless of medium.
If the advertisement asks the prospect to take a specific action, for instance call a free phone number or visit a Web
site, then the effort is considered to be direct response advertising.
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 offer a positive return on investment as the message is not hidden
with overcomplicated branding. Instead, direct advertising is straight to the point; offers a product, service, or event;
and explains how to get the offered product, service, or event.
Direct marketing
Mail order pioneer Aaron Montgomery Ward knew that by using the technique of selling product directly to the
consumer at appealing prices could, if executed effectively and efficiently, revolutionize the market industry and
therefore be used as an innovative model for marketing products and creating customer loyalty.[1] The term "direct
marketing" was coined long after Montgomery Ward's time.
In 1967 Lester Wunderman identified, named, and defined "direct marketing". Wunderman — considered to be the
father of contemporary direct marketing — is behind the creation of the toll-free 1-800 number[1] and numerous
loyalty marketing programs including the Columbia Record Club, the magazine subscription card, and the American
Express Customer Rewards program.[2] The term junk mail, referring to unsolicited commercial ads delivered via
post office or directly deposited in consumers' mail boxes, can be traced back to 1954.[3] The term spam, meaning
"unsolicited commercial e-mail," can be traced back to March 31, 1993,[4] although in its first few months it merely
referred to inadvertently posting a message so many times on UseNet that the repetitions effectively drowned out the
normal flow of conversation.
In 1872, Aaron Montgomery Ward produced the first mail-order catalogue for his Montgomery Ward mail order
business. By buying goods and then reselling them directly to customers, Ward was consequently removing the
middlemen at the general store and, to the benefit of the customer, drastically lowering the prices.[5] The Direct Mail
Advertising Association, predecessor of the present-day Direct Marketing Association, was first established in
1917.[6] Third class bulk mail postage rates were established in 1928.[7]
Benefits and drawbacks
Direct marketing is attractive to many marketers because in many cases its positive effect (but not negative results)
can be measured directly. For example, if a marketer sends out 1,000 solicitations by mail and 100 respond to the
promotion, the marketer can say with confidence that campaign led directly to 10% direct responses. The number of
recipients who are offended by junk mail/spam, however, is not easily measured. By contrast, measurement of other
media must often be indirect, since there is no direct response from a consumer. Measurement of results, a
fundamental element in successful direct marketing, is explored in greater detail elsewhere in this article.
The Internet has made it easier for marketing managers to measure the results of a campaign. This is often achieved
by using a specific Web site landing page directly relating to the promotional material, a call to action will ask the
consumer to visit the landing page, and the effectiveness of the campaign can be measured by taking the number of
promotional messages distributed (e.g., 1,000) and dividing it by the number of responses (people visiting the unique
Web site page).
Another way to measure the results is to compare the projected sales for a given term with the actual sales after a
direct advertising campaign.
While many marketers recognize the financial benefits of increasing targeted awareness, some direct marketing
efforts using particular media have been criticized for generating poor quality leads, either due to poor message
strategy or because of poorly compiled demographic databases. Advertisers do not wish to waste money on
communicating with consumers not interested in their products. For example, direct mail that is irrelevant to the
recipient is considered 'junk mail', and unwanted e-mail messages are considered 'spam'. Some consumers are
demanding an end to direct marketing for privacy and environmental reasons, which direct marketers are able to do
to some extent by using "opt-out" lists, variable printing, and more-targeted mailing lists. In response to consumer
demand and increasing business pressure to increase the effectiveness of reaching the right consumer with direct
marketing, companies specialize in targeted direct advertising to great effect, reducing advertising budget waste and
increasing the effectiveness of delivering a marketing message with better geodemography information, delivering
the advertising message to only the consumers interested in the product, service, or event on offer.
Direct marketing
Direct mail
The most common form of direct marketing is direct mail, sometimes called junk mail, used by advertisers who
send paper mail to all postal customers in an area or to all customers on a list.
Any low-budget medium that can be used to deliver a communication
to a customer can be employed in direct marketing. Probably the most
commonly used medium for direct marketing is mail, in which
marketing communications are sent to customers using the postal
service. The term direct mail is used in the direct marketing industry
to refer to communication deliveries by the Post Office, which may
also be referred to as "junk mail" or "admail" and may involve bulk
Direct mail includes advertising circulars, catalogs, free trial CDs,
pre-approved credit card applications, and other unsolicited
merchandising invitations delivered by mail or to homes and businesses, or delivered to consumers' mailboxes by
delivery services other than the Post Office. 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 are substantially 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.
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).
Another common form of direct marketing is telemarketing, in which marketers contact consumers by phone. The
unpopularity of cold call telemarketing (in which the consumer does not expect or invite the sales call) has led some
US states and the US federal government to create "no-call lists" and legislation including heavy fines. This process
may be outsourced to specialist call centres.
In the US, a national do-not-call list went into effect on October 1, 2003. Under the law, it is illegal for telemarketers
to call anyone who has registered themselves on the list. After the list had operated for one year, over 62 million
people had signed up.[8] The telemarketing industry opposed the creation of the list, but most telemarketers have
complied with the law and refrained from calling people who are on the list. (The list does not apply to non-profit
Canada has passed legislation to create a similar Do Not Call List. In other countries it is voluntary, such as the New
Zealand Name Removal Service.
Direct marketing
Email Marketing
Email Marketing is a third type of direct marketing. A major concern is spam. As a result of the proliferation of mass
spamming, ISPs and email service providers have developed increasingly effective E-Mail Filtering programs. These
filters can interfere with the delivery of email marketing campaigns, even if the person has subscribed to receive
them,[9] as legitimate email marketing can possess the same hallmarks as spam. There are a range of e-mail service
providers that provide services for legitimate opt-in emailers to avoid being classified as spam.
Door-to-Door Leaflet Marketing
Leaflet distribution services are used extensively by the fast food industries, and many other business focussing on a
local catchment. Business to consumer business model, similar to direct mail marketing, this method is targeted
purely by area, and costs a fraction of the amount of a mailshot due to not having to purchase stamps, envelopes or
having to buy address lists and the names of home occupants.
Broadcast faxing
A fourth type of direct marketing, broadcast faxing, is now less common than the other forms. This is partly due to
laws in the United States and elsewhere which make it illegal.
Voicemail Marketing
A fifth type of direct marketing has emerged out of the market prevalence of personal voice mailboxes, and business
voicemail systems. Due to the ubiquity of email marketing, and the expense of direct mail and telemarketing,
voicemail marketing presented a cost effective means by which to reach people directly, by voice.
Abuse of consumer marketing applications of voicemail marketing resulted in an abundance of "voice-spam", and
prompted many jurisdictions to pass laws regulating consumer voicemail marketing.
More recently, businesses have utilized guided voicemail (an application where pre-recorded voicemails are guided
by live callers) to accomplish personalized business-to-business marketing formerly reserved for telemarketing.
Because guided voicemail is used to contact only businesses, it is exempt from Do Not Call regulations in place for
other forms of voicemail marketing.
Another variation is voicemail courier (an application where pre-recorded voice messages are couriered into
voicemail by live callers) to accomplish personalized voicemail marketing. Voicemail courier is used for both
business-to-business marketing and also business-to-consumer applications.
Couponing is used in print media to elicit a response from the reader. An example is a coupon which the reader cuts
out and presents to a super-store check-out counter to avail of a discount. Coupons in newspapers and magazines
cannot be considered direct marketing, since the marketer incurs the cost of supporting a third-party medium (the
newspaper or magazine); direct marketing aims to circumvent that balance, paring the costs down to solely
delivering their unsolicited sales message to the consumer, without supporting the newspaper that the consumer
seeks and welcomes.
Direct marketing
Direct-response television marketing
Direct marketing on TV (commonly referred to as DRTV) has two basic forms: long form (usually half-hour or
hour-long segments that explain a product in detail and are commonly referred to as infomercials) and short form,
which refers to typical 30-second or 60-second commercials that ask viewers for an immediate response (typically to
call a phone number on screen or go to a Web site).
TV-response marketing—i.e. infomercials—can be considered a form of direct marketing, since responses are in the
form of calls to telephone numbers given on-air. This both allows marketers to reasonably conclude that the calls are
due to a particular campaign, and allows the marketers to obtain customers' phone numbers as targets for
telemarketing. Under the Federal Do-Not-Call List rules in the US, if the caller buys anything, the marketer would be
exempt from Do-Not-Call List restrictions for a period of time due to having a prior business relationship with the
caller. Firms such as QVC, Thane Direct, and Interwood Marketing Group then cross-sell and up-sell to these
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)
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 as Tupperware parties.
Popularity of Direct Advertising
A report[10] produced by the Direct Marketing Association found that 57% of the campaigns studied were employing
integrated strategies. Of those, almost half (47%) launched with a direct mail campaign, typically followed by e-mail
and then telemarketing.
[1] Brandweek 50,no.36.D1-D4 "The Next Generation of DIRECT MARKETING." Academic Search Complete, EBSCOhost, 2009,p.6.
[2] Marketing Legend Lester Wunderman Live on ‘The Alan Levy Show’ (http:/ / blog. blogtalkradio. com/ advertising/
marketing-legend-lester-wunderman-live-alan-levy-show/ )
[3] Entry for junk (http:/ / www. etymonline. com/ index. php?term=junk), Online Etymology Dictionary. Retrieved February 19, 2008.
[4] Origin of the term "spam" to mean net abuse (http:/ / www. templetons. com/ brad/ spamterm. html), Brad Templeton's website. Retrieved
February 19, 2008.
[5] Brandweek 50,no.36.D1-D4 "The Next Generation of DIRECT MARKETING." Academic Search Complete, EBSCOhost, 2009,p.6.
[6] O'guinn, Thomas (2008). Advertising and Integrated Brand Promotion. Oxford Oxfordshire: Oxford University Press. p. 625.
ISBN 9780324568622.
[7] Postal Service OPERATIONS (http:/ / www. lookd. com/ postal/ operations. html)
[8] National Do Not Call Registry Celebrates One-Year Anniversary (http:/ / www. ftc. gov/ opa/ 2004/ 06/ dncanny. htm), Federal Trade
Commission, June 24, 2004. Retrieved February 19, 2008.
[9] What is a "Whitelist" and why do I want to work with a "Whitelisted" Mail Distributor? (http:/ / www. bethesda-list. com/ whitelist. html)
[10] "The Integrated Marketing Mix," Use of digital Media Rising, 'BtoB Magazine (http:/ / www. btobonline. com/ apps/ pbcs. dll/
article?AID=/ 20080714/ FREE/ 204064025),' July 14, 2008
Diversity marketing
Diversity marketing
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Diversity marketing (or in-culture marketing) is a marketing paradigm which sees marketing (and especially
marketing communications) as essentially an effort in communication with diverse publics. According to the
paradigm, the main focus of marketing today should be to create effective communication methods and a
communication mix appropriate to each of the diverse groups active in the market.
Diversity marketing recognizes the influence of cultural programming and acknowledges that different consumer
groups have life experiences in different cultural and social settings. Because of this different cultural programming,
the tastes, values, expectations, beliefs, ways of interaction, ways of entertainment, and lifestyle preferences of these
groups tend to be different from others. These differences require the creation of customised marketing strategies.
An acknowledgement of the importance of diversity marketing is that AT&T have a post for this discipline at vice
president level.[1]
Diversity marketing
• Dahl, Stephan: Diversity Marketing, Thomson, 2002
• Dahl, Stephan, "Cross-Cultural Advertising Research: What Do We Know About the Influence of Culture on
Advertising?" (January 2004). Middlesex University Discussion Paper No. 28. Available at SSRN: http://ssrn.
• Creating diversity marketing [2], Michigan Chronicle and Front Page, 22 February 2007
• TransCity [3], European online platform on Diversity Marketing
[1] "Spanish speakers cite service communication gap" (http:/ / www. usatoday. com/ money/ companies/
2007-06-06-spanish-consumers-usat_N. htm), USA Today, June 6, 2007
[2] http:/ / www. michronicleonline. com/ articlelive/ articles/ 470/ 1/ Creating-diversity-marketing/ Page1. html
[3] http:/ / www. transcity. com/
Ethical marketing
Ethical marketing
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Ethical marketing refers to the application of marketing ethics into the marketing process. Briefly, marketing ethics
refers to the philosophical examination, from a moral standpoint, of particular marketing issues that are matters of
moral judgment. Ethical marketing generally results in a more socially responsible and culturally sensitive business
community. The establishment of marketing ethics has the potential to benefit society as a whole, both in the shortand long-term. Ethical marketing should be part of business ethics in the sense that marketing forms a significant
part of any business model. Study of Ethical marketing should be included in applied ethics and involves
examination of whether or not an honest and factual representation of a product or service has been delivered in a
framework of cultural and social values.
It promotes qualitative benefits to its customers, which other similar companies, products or services fail to
recognize. The concern with ethical issues, such as child labor, working conditions, relationships with third world
countries and environmental problems, has changed the attitude of the Western World towards a more socially
responsible way of thinking. This has influenced companies and their response is to market their products in a more
socially responsible way.
The increasing trend of fair trade is an example of the impact of ethical marketing. In the 'Ethical Shoppers Price
Index Survey' (2009) fair trade was the most popular ethical badge products could have. It also revealed that many
consumers distrusted green claims. (The idea of fair trade is that consumers pay a guaranteed commodity price to a
small group of producers, the producers agree to pay fair labor prices and conserve the environment - a fair deal for
Ethical marketing
The philosophy of marketing is not lost with this newfound ethical slant, but rather hopes to win customer loyalty by
reinforcing the positive values of the brand, creating a strong citizen brand. However, this new way of thinking does
create new challenges for the marketer of the 21st century, in terms of invention and development of products to add
long-term benefits without reducing the product’s desirable qualities.
Many brands have tried to use ethics to make themselves look responsible, often spinning environmental claims
which has led to the term greenwash (see greenwashing) In research consumers have shown to have even less trust
of ethical claims in ads than ordinary ads. media attention on ethics has resulted in many top brands suffering
consumer boycotts. Although many brands have tried to use green issues, it has been noted that in research 2/3 of
consumers responded more to ethical claims that relate to people rather than to than environment.[1]
Ethical marketing should not be confused with government regulations brought into force to improve consumer
welfare, such as reducing sulfur dioxide emissions to improve the quality of the air. A government regulation is a
legal remedy intended to mitigate or correct an ethical issue, such as pollution of the air that we all share.
Enlightened ethical marketing is at work when the company and marketer recognize further improvements for
humankind unrelated to those enforced by governments or public opinion. By way of example, the Coop Group
refuses to invest money in tobacco, fur and any countries with oppressive regimes.
Further reading
• Murphy, Patrick E; Gene R. Laczniak, Norman E. Bowie, and Thomas A. Klein (2005) [2004]. Ethical marketing.
Upper Saddle River, N.J: Pearson Prentice Hall. ISBN 978-0131848146. OCLC 54805964.
• Laczniak, Eugene R; Robert F Lusch; William A Strang (1978). Ethical marketing : product vs. process.
Madison: Graduate School of Business, University of Wisconsin-Madison. OCLC 33226121.
• Ginsburg, Roy S (2006). Ethical marketing skills for lawyers. Denver: Continuing Legal Education in Colorado.
OCLC 133147723.
• Fan, Y. (2005). Ethical branding and corporate reputation - Corporate Communication: 10:4 [2]. Emerald Group
Publishing Limited. pp. 341–350. ISSN 1356-3289.
[1] Arnold, Chris (2010). Ethical Marketing & The New Consumer. John Wiley & Sons (UK). pp. 272. ISSN 978-0-47-74302-7.
[2] http:/ / hdl. handle. net/ 2438/ 1283
External links
• Ethical Marketing for Competitive Advantage on the Internet (
Evangelism marketing
Evangelism marketing
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Evangelism marketing is an advanced form of word of mouth marketing (WOMM) in which companies develop
customers who believe so strongly in a particular product or service that they freely try to convince others to buy and
use it. The customers become voluntary advocates, actively spreading the word on behalf of the company.
Evangelism marketing is sometimes confused with affiliate marketing. However, while affiliate programs provide
incentives in the form of money or products, evangelist customers spread their recommendations and recruit new
customers out of pure belief, not for the receipt of goods or money. Rather, the goal of the customer evangelist is
simply to provide benefit to other individuals.
As they act independently, evangelist customers often become key influencers. The fact that evangelists are not paid
or associated with any company make their beliefs perceived by others as credible and trustworthy.
Evangelism literally comes from the three words of 'bringing good news' and the marketing term justly draws from
the religious sense, as consumers are literally driven by their beliefs in a product or service, which they preach in an
attempt to convert others.
Evangelism marketing
Many people believe Guy Kawasaki, the former chief evangelist of Apple Computer, to be the Father of evangelism
marketing. In his books “The Art of the Start" and "How to Drive Your Competition Crazy” Kawasaki states that the
driving force behind evangelism marketing is the fact that individuals simply want to make the world a better place.
Evangelist customers spread their recommendations and recruit new customers out of pure belief, not for the receipt
of goods or money.
In their book, Creating Customer Evangelists: How Loyal Customers Become a Volunteer Sales Force, Ben
McConnell and Jackie Huba outline six steps to creating customer evangelists:
Customer plus-delta (Continuously gather customer feedback)
Napsterize knowledge (Freely share your knowledge)
Build the buzz (Create intelligent word-of-mouth networks)
Create community (Encourage communities of customers to meet and share)
Make bite-size chunks (Devise specialized, smaller offerings to get customers to bite)
Create a cause (Focus on making the world, or your industry, better)
Kinds of evangelism marketing
• Evangelism marketing is applicable to any kind of product.
• Technology evangelism is the evangelism marketing of a tool.
• Platform evangelism is the evangelism marketing of the opportunity to create complementary goods for a
multi-sided platform, which also involves non-marketing functions such as regulation of the platform's
commercial ecosystem to maximize network effects.
Customer communities
A strong avenue for evangelists is in the form of customer communities, which bring together groups of users of a
product or service to share information and discuss common issues. Some companies assist with such events, for
example General Motors' Saturn division in Tennessee organizes an annual summer picnic for thousands of
customers. Another example is the Harley Owners Groups (HOGS), organized by Harley Davidson, which associate
bikers locally and globally through quarterly and annual meetings held all over the world.
Starbucks Corporation, the coffee company, started an online customer community in 2008 called My Starbucks
Idea, designed to collect suggestions for products or services and feedback from customers.[1] During the first year of
the program, My Starbucks Idea generated 70,000 ideas through the site and approximately 50 changes based on
customer suggestions were implemented.
Evangelism marketing
External links
• Word of Mouth Marketing Association [2]
• Church of the Customer Blog [3]
• Micro Persuasion: Consumer Evangelism [4]
[1] Lynn Parker (September 14, 2010). "The ABCs of Social Branding" (http:/ / www. foxsmallbusinesscenter. com/ sbc/ 2010/ 09/ 14/
abcs-social-branding/ ). FOX News Network, LLC.. . Retrieved October 8, 2010.
[2] http:/ / www. womma. org/
[3] http:/ / www. churchofthecustomer. com/
[4] http:/ / www. micropersuasion. com/ customer_evangelism/ index. html
• Ahonen, T. and Moore, Alan. "Communities Dominate Brands: Business and Marketing Challenges for the 21st
Century", Futuretext, 2005. ISBN 0-9544327-3-8
• Huba, J. and McConnell, B. Creating Customer Evangelists: How Loyal Customers Become a Volunteer Sales
Force, Dearborn Trade, 2002. ISBN 0-7931-5561-4
• L. Forbes et al. (2005). "Typologies of e-commerce retail failures and recovery strategies". Journal of Services
Marketing 19 (5): 280–292. doi:10.1108/08876040510609907.
• Longenecker, C. (2005). "Marketing as a management style". Business Horizons 38 (4): 77.
• Rules for Revolutionaries by Guy Kawasaki
• The Macintosh Way by Guy Kawasaki
Figure of merit
A figure of merit is a quantity used to characterize the performance of a device, system or method, relative to its
alternatives. In engineering, figures of merit are often defined for particular materials or devices in order to
determine their relative utility for an application. In commerce, such figures are often used as a marketing tool to
convince consumers to choose a particular brand.
Clock rate of a CPU
Calories per serving
Contrast ratio of an LCD
Frequency response of a speaker
Fill factor of a solar cell
Resolution of the image sensor in a digital camera
Detection performance of a sonar system
Noise figure of a radio receiver
The thermoelectric figure of merit, Z, a material constant proportional to the efficiency of a thermoelectric couple
made with the material
• The figure of merit of digital-to-analog converter (DAC) is calculated as (Power dissipation)/((2^ENOB) *
Effective Bandwidth) [J/Hz].
• Luminous efficacy of lighting
• Battery life of a laptop computer [1]
Figure of merit
Benchmarks are synthetic figures of merit that summarize the speed of computers in performing various typical
tasks. Benchmarks designed by a manufacturer generally rate the manufacturer's products more favorably than
benchmarks designed by others or by independent benchmarkers.
The precision and verifiability of numbers sometimes make them a more effective sales tool than vague and non
numeric descriptions such as "state of the art" or "leaves the others in the dust". When used in deceptive advertising,
the deception lies more in the question of relevance rather than truth since the number quoted as a figure of merit
may not be enough to determine performance when comparing products. For example, when purchasing a laptop a
consumer could choose based on the capacity of its hard drive. The RPM, buffer, and seek times may not be noted,
but significantly affect performance.
Some figures such as Peak Music Power are used in selling consumer merchandise and have the principal merit of
yielding high numbers that can impress people who don't know what the numbers mean. Other figures such as
Specific Fuel Consumption are addressed to engineers and other studious buyers whom the sellers dare not mislead.
Another example is the megapixel count of a digital camera. A consumer unaware that the number of pixels on a
sensor is only one factor in the quality of the image that is captured may, for example, buy a camera with more
pixels squeezed onto a small image sensor, thus losing quality to small pixels.
Makers of cheap, consumer-market telescopes often tout the magnification power of their products, sidestepping the
fact that aperture, optical quality, and the type and quality of the telescope's mount are of more importance in
obtaining a quality image.
[1] Decoding Battery Life For Laptops (http:/ / www. nytimes. com/ 2009/ 06/ 25/ technology/ personaltech/ 25pogue. html) New York Times,
June 25, 2009
Global marketing
Global marketing
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
The Oxford University Press defines global marketing as “marketing on a worldwide scale reconciling or taking
commercial advantage of global operational differences, similarities and opportunities in order to meet global
objectives.” Oxford University Press’ Glossary of Marketing Terms. [1]
Here are three reasons for the shift from domestic to global marketing as given by the authors of the textbook,
Global Marketing Management—3rd Edition by Masaaki Kotabe and Kristiaan Helsen, 2004.
Worldwide competition
One of the product categories in which global competition has been easy to track in automotive sales. The
increasing intensity of competition in global markets is a challenge facing companies at all stages of involvement in
international markets. As markets open up, and become more integrated, the pace of change accelerates, technology
shrinks distances between markets and reduces the scale advantages of large firms, new sources of competition
emerge, and competitive pressures mount at all levels of the organization. Also, the threat of competition from
companies in countries such as India, China, Malaysia, and Brazil is on the rise, as their own domestic markets are
opening up to foreign competition, stimulating greater awareness of international market opportunities and of the
need to be internationally competitive. Companies which previously focused on protected domestic markets are
entering into markets in other countries, creating new sources of competition, often targeted to price-sensitive market
segments. Not only is competition intensifying for all firms regardless of their degree of global market involvement,
but the basis for competition is changing. Competition continues to be market-based and ultimately relies on
Global marketing
delivering superior value to consumers. However, success in global markets depends on knowledge accumulation
and deployment.[2] tiwana.
Evolution to global marketing
Global marketing is not a revolutionary shift, it is an evolutionary process. While the following does not apply to all
companies, it does apply to most companies that begin as domestic-only companies.
Domestic marketing
A marketing restricted to the political boundaries of a country, is called "Domestic Marketing". A company
marketing only within its national boundaries only has to consider domestic competition. Even if that competition
includes companies from foreign markets, it still only has to focus on the competition that exists in its home market.
Products and services are developed for customers in the home market without thought of how the product or service
could be used in other markets. All marketing decisions are made at headquarters.
The biggest obstacle these marketers face is being blindsided by emerging global marketers. Because domestic
marketers do not generally focus on the changes in the global marketplace, they may not be aware of a potential
competitor who is a market leader on three continents until they simultaneously open 20 stores in the Northeastern
U.S. These marketers can be considered ethnocentric as they are most concerned with how they are perceived in their
home country. exporting goods to other countries. loosener Rhett
International marketing
If the exporting departments are becoming successful but the costs of doing business from headquarters plus time
differences, language barriers, and cultural ignorance are hindering the company’s competitiveness in the foreign
market, then offices could be built in the foreign countries. Sometimes companies buy firms in the foreign countries
to take advantage of relationships, storefronts, factories, and personnel already in place. These offices still report to
headquarters in the home market but most of the marketing mix decisions are made in the individual countries since
that staff is the most knowledgeable about the target markets. Local product development is based on the needs of
local customers. These marketers are considered polycentric because they acknowledge that each market/country has
different needs.
Elements of the global marketing mix
The “Four P’s” of marketing: product, price, placement, and promotion are all affected as a company moves through
the five evolutionary phases to become a global company. Ultimately, at the global marketing level, a company
trying to speak with one voice is faced with many challenges when creating a worldwide marketing plan. Unless a
company holds the same position against its competition in all markets (market leader, low cost, etc.) it is impossible
to launch identical marketing plans worldwide. Nisant Chakram(Marketing Management)
A global company is one that can create a single product and only have to tweak elements for different markets. For
example, Coca-Cola uses two formulas (one with sugar, one with corn syrup) for all markets. The product packaging
in every country incorporates the contour bottle design and the dynamic ribbon in some way, shape, or form.
However, the bottle or can also includes the country’s native language and is the same size as other beverage bottles
or cans in that same country.
Global marketing
Price will always vary from market to market. Price is affected by many variables: cost of product development
(produced locally or imported), cost of ingredients, cost of delivery (transportation, tariffs, etc.), and much more.
Additionally, the product’s position in relation to the competition influences the ultimate profit margin. Whether this
product is considered the high-end, expensive choice, the economical, low-cost choice, or something in-between
helps determine the price point.
How the product is distributed is also a country-by-country decision influenced by how the competition is being
offered to the target market. Using Coca-Cola as an example again, not all cultures use vending machines. In the
United States, beverages are sold by the pallet via warehouse stores. In India, this is not an option. Placement
decisions must also consider the product’s position in the market place. For example, a high-end product would not
want to be distributed via a “dollar store” in the United States. Conversely, a product promoted as the low-cost option
in France would find limited success in a pricey boutique.
After product research, development and creation, promotion (specifically advertising) is generally the largest line
item in a global company’s marketing budget. At this stage of a company’s development, integrated marketing is the
goal. The global corporation seeks to reduce costs, minimize redundancies in personnel and work, maximize speed
of implementation, and to speak with one voice. If the goal of a global company is to send the same message
worldwide, then delivering that message in a relevant, engaging, and cost-effective way is the challenge.
Effective global advertising techniques do exist. The key is testing advertising ideas using a marketing research
system proven to provide results that can be compared across countries. The ability to identify which elements or
moments of an ad are contributing to that success is how economies of scale are maximized. Market research
measures such as Flow of Attention, Flow of Emotion and branding moments provide insights into what is working
in an ad in any country because the measures are based on visual, not verbal, elements of the ad.
Advantages and Disadvantages
The advantages of global market we can introduce our product by using advertising
Economies of scale in production and distribution
Lower marketing costs
Power and scope
Consistency in brand image
Ability to leverage good ideas quickly and efficiently
Uniformity of marketing practices
Helps to establish relationships outside of the "political arena"
Helps to encourage ancillary industries to be set up to cater for the needs of the global player
Benefits of eMarketing over traditional marketing
Global marketing
The nature of the internet means businesses now have a truly global reach. While traditional media costs limit this
kind of reach to huge multinationals, eMarketing opens up new avenues for smaller businesses, on a much smaller
budget, to access potential consumers from all over the world.
Internet marketing allows the marketer to reach consumers in a wide range of ways and enables them to offer a wide
range of products and services. eMarketing includes, among other things, information management, public relations,
customer service and sales. With the range of new technologies becoming available all the time, this scope can only
Whereas traditional marketing is largely about getting a brand’s message out there, eMarketing facilitates
conversations between companies and consumers. With a two way communication channel, companies can feed off
of the responses of their consumers, making them more dynamic and adaptive.
Internet marketing is able to, in ways never before imagined, provide an immediate impact. Imagine you’re reading
your favorite magazine. You see a double-page advert for some new product or service, maybe BMW’s latest luxury
sedan or Apple’s latest iPod offering. With this kind of traditional media, it’s not that easy for you, the consumer, to
take the step from hearing about a product to actual acquisition. With eMarketing, it’s easy to make that step as
simple as possible, meaning that within a few short clicks you could have booked a test drive or ordered the iPod.
And all of this can happen regardless of normal office hours. Effectively, Internet marketing makes business hours
24 hours per day, 7 days per week for every week of the year. By closing the gap between providing information and
eliciting a consumer reaction, the consumer’s buying cycle is speeded up and advertising spend can go much further
in creating immediate leads.
Demographics and targeting
Generally speaking, the demographics of the Internet are a marketer’s dream. Internet users, considered as a group,
have greater buying power and could perhaps be considered as a population group skewed towards the
middle-classes. Buying power is not all though. The nature of the Internet is such that its users will tend to organize
themselves into far more focused groupings. Savvy marketers who know where to look can quite easily find access
to the niche markets they wish to target. Marketing messages are most effective when they are presented directly to
the audience most likely to be interested. The Internet creates the perfect environment for niche marketing to
targeted groups.
Adaptivity and closed loop marketing
Closed Loop Marketing requires the constant measurement and analysis of the results of marketing initiatives. By
continuously tracking the response and effectiveness of a campaign, the marketer can be far more dynamic in
adapting to consumers’ wants and needs. With eMarketing, responses can be analyzed in real-time and campaigns
can be tweaked continuously. Combined with the immediacy of the Internet as a medium, this means that there’s
minimal advertising spend wasted on less than effective campaigns. Maximum marketing efficiency from
eMarketing creates new opportunities to seize strategic competitive advantages. The combination of all these factors
results in an improved ROI and ultimately, more customers, happier customers and an improved bottom line.
Global marketing
Differences in consumer needs, wants, and usage patterns for products
Differences in consumer response to marketing mix elements
Differences in brand and product development and the competitive environment
Differences in the legal environment, some of which may conflict with those of the home market
Differences in the institutions available, some of which may call for the creation of entirely new ones (e.g.
• Differences in administrative procedures
• Differences in product placement.
• Differences in the administrative procedures and product placement can occur
[1] http:/ / www. oup. com/ uk/ booksites/ content/ 0199267529/ student/ glossary. htm#G
Samuel Craig; Susan P. Douglas. (http:/ / www. vuw. ac. nz/ ~caplabtb/
Further reading
• Kotabe, Masaki and Helsen, Kristiaan, Global Marketing Management – 3rd Edition, John Wiley & Sons, Inc –
Publishers, Copyright 2004, ISBN 0-471-23062-6
• Kotler & Keller, Marketing Management - 12th Edition, 2005, ISBN 81-203-2799-3
• Theodore Levitt, The Globalization of Markets, Harvard Business Review 61 (May–June 1983): 92-102
• Young, Charles E., Advertising Research Handbook, Ideas in Flight, Seattle, WA, April 2005, ISBN
External links
• ( Global Marketing Network is the worldwide membership association for
marketing and business professionals. With Ashcroft International Business School at Anglia Ruskin University it
offers a full validated UK Masters leading to an MSc Global Marketing Practice, designed to raise standards in
marketing practice worldwide. More information at (
• ( World Federation of Advertisers
• ( several presentations on
Global Advertising given by advertising practitioners
Guerrilla marketing
Guerrilla marketing
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
The concept of guerrilla marketing was invented as an unconventional system of promotions that relies on time,
energy and imagination rather than a big marketing budget. Typically, guerrilla marketing campaigns are unexpected
and unconventional, potentially interactive, and consumers are targeted in unexpected places. The objective of
guerrilla marketing is to create a unique, engaging and thought-provoking concept to generate buzz, and
consequently turn viral. The term was coined and defined by Jay Conrad Levinson in his book Guerrilla Marketing.
The term has since entered the popular vocabulary and marketing textbooks.
Guerrilla marketing involves unusual approaches such as intercept encounters in public places, street giveaways of
products, PR stunts, or any unconventional marketing intended to get maximum results from minimal resources.
More innovative approaches to Guerrilla marketing now utilize cutting edge mobile digital technologies to engage
the consumer and create a memorable brand experience.
Guerrilla marketing
Levinson's books include hundreds of "guerrilla marketing weapons," but also encourages guerrilla marketers to be
creative in devising unconventional methods of promotion. Guerrilla marketers use all of their contacts, both
professional and personal, and examine their company and its products, looking for sources of publicity. Many forms
of publicity can be very inexpensive, or even free.
Levinson says that when implementing guerrilla marketing tactics, small size is actually an advantage. Small
organizations and entrepreneurs are able to obtain publicity more easily than large companies, as they are closer to
their customers and considerably more agile.
Yet ultimately, according to Levinson, the guerrilla marketer must "deliver the goods". In The Guerrilla Marketing
Handbook, he states: "In order to sell a product or a service, a company must establish a relationship with the
customer. It must build trust and support. It must understand the customer's needs, and it must provide a product that
delivers the promised benefits."
Levinson identifies the following principles as the foundation of guerrilla marketing:
• Guerrilla Marketing is specifically geared for the small business and entrepreneur.
• It should be based on human psychology rather than experience, judgement, and guesswork.
• Instead of money, the primary investments of marketing should be time, energy, and imagination.
• The primary statistic to measure your business is the amount of profits, not sales.
• The marketer should also concentrate on how many new relationships are made each month.
• Create a standard of excellence with an acute focus instead of trying to diversify by offering too many diverse
products and services.
• Instead of concentrating on getting new customers, aim for more referrals, more transactions with existing
customers, and larger transactions.
• Forget about the competition and concentrate more on cooperating with other businesses.
• Guerrilla marketers should use a combination of marketing methods for a campaign.
• Use current technology as a tool to build your business.
• Messages are aimed at individuals or small groups, the smaller the better.
• Focuses on gaining the consent of the individual to send them more information rather than trying to make the
• Commit to your campaign. Use Effective frequency instead of creating a new message theme for each campaign.
Associated marketing trends
The term Guerrilla Marketing is now often used more loosely as a descriptor for non-traditional media, such as:
Reverse Graffiti — clean pavement adverts
Viral marketing — through social networks
Presence marketing — marketing for being there
Grassroots marketing — tapping into the collective efforts of brand enthusiasts
Wild Posting Campaigns
Alternative marketing
Buzz marketing — word of mouth marketing
Undercover marketing — subtle product placement
Astroturfing — disguising company messaging as an authentic grassroots movement
Experiential marketing — interaction with product
Tissue-pack marketing — hand-to-hand marketing
• Live-in marketing — real life product placement - see related article or Hostival Connect
Guerrilla marketing
• Wait marketing — when and where consumers are waiting (such as medical offices and gas pumps) and receptive
to communications
Guerrilla marketing was initially used by small and medium size (SMEs) businesses, but it is now increasingly
adopted by large businesses.
Aqua Teen Hunger Force
On January 31, 2007, several magnetic light displays in and around Boston, Massachusetts, were mistaken for
possible explosive devices. Several subway stations, bridges, and a portion of Interstate 93 were closed as police
examined, removed, and in some cases, destroyed the devices. The suspicious objects were revealed to be ads
depicting the Mooninites, Ignignokt and Err, characters from the Adult Swim animated television series Aqua Teen
Hunger Force.
External links
• "Gotcha! Ads push the envelope" [1] CNN/Money article
• Jay Conrad Levinson's official guerrilla marketing website [2]
[1] http:/ / money. cnn. com/ 2004/ 08/ 13/ news/ economy/ weirdads/ index. htm?cnn=yes
[2] http:/ / gmarketing. com
Inbound marketing
Inbound marketing
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Inbound Marketing and its opposite Outbound Marketing have various meanings depending on the context.
• One pair of definitions[1] [2] are:
• Inbound marketing is a marketing strategy that focuses on getting found by customers. This sense is related to
relationship marketing and Seth Godin's idea of permission marketing. David Meerman Scott recommends[3]
that marketers "earn their way in" (via publishing helpful information on a blog etc.) in contrast to outbound
marketing where they used to have to "buy, beg, or bug their way in" (via paid advertisements, issuing press
releases in the hope they get picked up by the trade press, or paying commissioned sales people, respectively).
Brian Halligan, cofounder and CEO of HubSpot, claims[4] he coined the usage of the term in this sense.
• Antonym for this usage: Traditional marketing (outbound marketing) is a marketing strategy that focuses on
finding customers by building brand awareness through advertising and promotion. In contrast to "permission
marketing," a pejorative term for this type of marketing is "interruption marketing."
• An older pair of definitions[5] are:
• Inbound marketing is market research. In contrast to the above, pieces of information about customer needs
and interests, not customers themselves, flow into the company. Knowledge of customer needs drives future
company offerings, and product or service capability. This sense is related to the term product management
(product ownership in Scrum). Peter Drucker believed[6] this to be the quintessence of marketing.
• Antonym for this usage: Outbound marketing is marketing communications. In this sense, information about
finished product capability flows out to prospective customers who have a need for it. This sense is related to
Inbound marketing
the term product marketing.
Inbound vs. outbound marketing
Brian Halligan, CEO & Founder of HubSpot, coined the term inbound marketing, in the newer of the two senses.[7] .
Inbound marketing involves getting found by potential customers through search (opposite of Outbound Marketing).
The shift from outbound to inbound marketing has led to new mediums of outreach to the public. Outbound
marketing, also referred to as “old marketing” or traditional marketing, targets a broad audience using print ads,
television ads, telemarketing/cold calls, direct mail/e-mail, etc.[8] Inbound marketing, or “new marketing” and
modern marketing, is a response to the recent change in consumer behavior. People are more in control of what
information they receive and how. Rather than interrupting people to get their attention with emails, cold calls,
commercials, etc. (outbound marketing), inbound marketing relies on the principle that visitors find and come to
you. In outbound marketing, the company is in control. Using inbound marketing, the customer is in control.
Halligan describes why outbound marketing techniques are becoming less effective:
“Your average human today is inundated with over 2000 outbound marketing interruptions per day and is
figuring out more and more creative ways to block them out, including caller ID, spam filtering, TiVo, and
Sirius satellite radio. Second, the cost of coordination around learning about something new or shopping for
something new using the internet (search engines, blogs, and social media sites) is now much lower than going
to a seminar at the Marriott or flying to a trade show in Las Vegas.”[9]
- Brian Halligan, HubSpot [10]
Types of inbound marketing
Inbound marketing mediums are broken down into three categories:
• Content (Blogs, videos, white papers, eBooks, etc.)
• SEO (Search Engine Optimization and keyword analysis)
• Social media (Twitter [11], Linked In [12], Facebook [13], etc.)
The most successful inbound marketing campaigns contain all three key components[9] First, inbound marketing
content is created and published using the medium of choice (blog, video, white paper, eBook, etc.). Second, Search
Engine Optimization increases the rank of the content and makes it more accessible. Third, social media
media(Twitter [11], Facebook, LinkedIn, etc.) continue to spread the content.
Content (Blogs, videos, white papers, eBooks, etc.)
Content is the substance of an inbound marketing campaign. This form of inbound marketing refers to information or
tools that attract potential customers to the business or site[9] Some examples of content-publishing sites for inbound
marketing purposes include:
• Blogs: Blogger [14], WordPress [15], ExpressionEngine [16], LiveJournal [17], OpenDiary [18], TypePad [19], Vox
, Xanga [21]
• Videos: YouTube [22], Dailymotion [23], Metacafe [24]
• White Papers: WhitePaperSource [25], The Direct Marketing Association [26] (DMA)
• EBooks: eBooks, NetLibrary
Inbound marketing
SEO (Search Engine Optimization & keyword analysis)
Search Engine Optimization (SEO) is the process of improving the visibility of a web site in search engines.[27] SEO
considers how search engines work and what people are searching for. In inbound marketing, SEO allows companies
to be found more. Most consumers begin their buying process by using a search engine (Google, Bing, Yahoo!, Ask,
AOL Search, etc.). Search engine optimization is the practice of building up a web site to maximize its ranking in
search engines results.
Social media (Twitter, LinkedIn, Facebook, etc.)
The term “social media” does not have one universal definition. Andreas Kaplan and Michael Haenlein define social
media as “a group of Internet-based applications that build on the ideological and technological foundations of Web
2.0 and that allow the creation and exchange of user-generated content.”[28]
In inbound marketing, social media channels increase the impact of the content.
Benefits of inbound marketing
In an economic recession, inbound marketing is a more efficient way of allocating money than outbound
marketing[29] Brian Halligan, CEO of HubSpot and initiator of “inbound marketing”, divides the benefits of inbound
marketing into two main categories: cost effectiveness and better targeting.
Cost effectiveness
In 2001, the Dow Jones Industrial Average depicts businesses shifting marketing dollars into search engine
advertising, or pay-per-click advertising, in response to an economic recession.[29] In 2008, another economic
recession began. In response, businesses again began shifting money out of expensive paid search advertising into
inbound marketing.
Inbound marketing costs less than outbound marketing. Outbound marketing becomes expensive since companies
use money to buy advertisements or e-mail lists, rent booths at trade shows, etc. Most content of inbound marketing
is created and generated on web sites that are free of charge, such as Twitter [30] or [13] Facebook.
The cost effectiveness of the shift from outbound to inbound marketing can be measured using a Return on
Investment (ROI). HubSpot, an inbound marketing agency, conducted a 2010 study titled “The State of Inbound
Marketing” [31].[32] This study analyzed data from businesses about what types of marketing programs deliver the
best return on investment. HubSpot’s major finding was that inbound marketing focused businesses have a 60%
lower cost per lead[33] – less money is utilized to produce more results.
In January 2010, another analysis of inbound marketing was conducted by an M.I.T. Sloan School of Management
graduate student. Melissa DiBella, class of 2010, conducted independent research into the return on investment of
companies using HubSpot software for inbound marketing purposes. The complete report of “Return on Investment
from Inbound Marketing through Implementing HubSpot Software” [34][35] can be viewed online.
Inbound marketing
Better targeting
Outbound marketing techniques target a broad audience. Instead of identifying a target audience, companies using
outbound marketing reach out to all consumers. As a result, statistics show only 1-3% of all targeted consumers
respond[8] – 97% of all marketing efforts go to waste. Inbound marketing only targets individuals who self-qualify
themselves[29] by demonstrating an interest in your content.
Successes in inbound marketing
In the 2008 presidential campaign, Barack Obama used inbound marketing to beat Hillary Clinton in the democratic
primary[36] Up until the 2008 election, Obama was a first-term senator from Illinois running against the well-known
and funded New York State senator, Clinton. Initially, Obama had less funding and could not compete with Clinton’s
e-mails, telemarketing, direct mail campaigns, and television and radio advertisements[36] Chris Hughes, co-founder
of Facebook, was hired as Obama’s Internet Strategist.[36] Hughes explains how the Obama campaign employed
inbound marketing:
“The aim of our online campaign was to help individuals understand the values of Barack Obama and of our
campaign and then to make it as easy as possible for them to actively engage with the campaign’s work. We
tried to open as many direct channels of communication as possible—using e-mail, text messages, online
networks—and then equip them with the tools to spread the campaign’s message using network technology
such as [37] and Facebook.”[36]
- Chris Hughes,
During the 2008 presidential race, Barack Obama connected with voters using the following inbound
marketing techniques:[36] Organizing for America blog, Barack Obama Facebook, @BarackObama Twitter,
Barack Obama LinkedIn, BarackObamadotcom YouTube
On June 4, 2008, Senator Barack Obama became the democratic nominee for president of the United
States.[38] Obama used his Facebook account to create a “register to vote” function, getting 3,000,000
Facebook followers.[36]
[1] Vittal, Suresh; Anderson, Elana; Joseph, Jennifer (January 9, 2007). "How Technology Enables Inbound Marketing: Evaluate Interaction
Management To Optimize Real-Time Recommendations" (http:/ / www. forrester. com/ Research/ Document/ Excerpt/ 0,7211,40760,00.
html). . Retrieved May 7, 2009.
[2] Halligan, Brian; Shah, Dharmesh (2009). Inbound Marketing: Get Found Using Google, Social Media, and Blogs. John Wiley & Sons Inc.
ISBN 0470499311.
[3] David Meerman Scott. (2010). The New Rules of Marketing and PR: How to Use Social Media, Blogs, News Releases, Online Video, and
Viral Marketing to Reach Buyers Directly. (http:/ / www. davidmeermanscott. com/ books. htm) (2 ed.). Hoboken, N.J.: John Wiley & Sons
Inc. ISBN 0470547812. .
[4] "Brian Halligan, HubSpot CEO & Co-Founder" (http:/ / inboundmarketing. com/ brian). .
[5] McNamara, Carter. "Marketing - A Commonly Misunderstood Term" (http:/ / managementhelp. org/ mrktng/ mrktng. htm). . Retrieved
2009,April 19.
[6] Drucker, Peter F. (1974). Management: Tasks, Responsibilities, Practices. New York, NY: Harper & Row. pp. 864. ISBN 0-06-011092-9.
"There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing
is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a
customer who is ready to buy. All that should be needed then is to make the product or service available..."
[7] Harnish, Verne (2010). "Marketing Is Fun Again; Brian Halligan; Inbound Marketing Chapter 2; Best Video” (http:/ / verneharnish. typepad.
com/ growthguy/ 2010/ 03/ marketing-is-fun-again-brian-halligan-inbound-marketing-chapter-2-best-video. html), The Growth Guy.
[8] HubSpot, Inc. (2010). "Outbound vs. Inbound Marketing." (http:/ / www. hubspot. com/ Outbound-vs-Inbound-Marketing/ ) HubSpot.
[9] Halligan, Brian (2010). "Inbound Marketing vs. Outbound Marketing." (http:/ / blog. hubspot. com/ blog/ tabid/ 6307/ bid/ 2989/
Inbound-Marketing-vs-Outbound-Marketing. aspx) HubSpot.
[10] http:/ / hubspot. com
[11] http:/ / www. twitter. com
[12] http:/ / linkedin. com
Inbound marketing
[13] http:/ / www. facebook. com
[14] http:/ / www. blogger. com
[15] http:/ / wordpress. com
[16] http:/ / expressionengine. com
[17] http:/ / livejournal. com
[18] http:/ / opendiary. com
[19] http:/ / typepad. com
[20] http:/ / vox. com
[21] http:/ / xanga. com
[22] http:/ / www. youtube. com
[23] http:/ / www. dailymotion. com
[24] http:/ / www. metacafe. com
[25] http:/ / whitepapersource. com
[26] http:/ / the-dma. org
[27] http:/ / en. wikipedia. org/ wiki/ Search_engine_optimization
[28] http:/ / en. wikipedia. org/ wiki/ Social_media
[29] Burnes, Rick (2008). "Inbound Marketing & the Next Phase of Marketing on the Web." (http:/ / blog. hubspot. com/ blog/ tabid/ 6307/ bid/
4416/ Inbound-Marketing-the-Next-Phase-of-Marketing-on-the-Web. aspx) HubSpot Blog.
[30] http:/ / twitter. com
[31] http:/ / www. hubspot. com/ Portals/ 53/ docs/ resellers/ reports/ state_of_inbound_marketing. pdf
[32] HubSpot, Inc. (2010). "The State of Inbound Marketing 2010." HubSpot.
[33] HubSpot, Inc. (2010). "The State of Inbound Marketing 2010." (http:/ / www. hubspot. com/ Portals/ 53/ docs/ resellers/ reports/
state_of_inbound_marketing. pdf) HubSpot.
[34] http:/ / www. hubspot. com/ Default. aspx?app=LeadgenDownload& shortpath=docs%2f2010+ ROI+ Report. pdf
[35] DiBella, Melissa (2010). "Return on Investment from Inbound Marketing through Implementing HubSpot Software." (http:/ / www.
hubspot. com/ Default. aspx?app=LeadgenDownload& shortpath=docs/ 2010+ ROI+ Report. pdf) HubSpot.
[36] Halligan, Brian, and Dharmesh Shah (2010). Inbound Marketing: Get Found Using Google, Social Media, and Blogs. Hoboken: John Wiley
& Sons, 2010. Print.
[37] http:/ / My. BarackObama. com
[38] "Obama: I Will Be the Democratic Nominee -" (http:/ / www. cnn. com/ 2008/ POLITICS/ 06/ 03/ election. democrats/ index.
html) (2010) Cable News Network.
Influencer marketing
Influencer marketing
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Influencer marketing, (also Influence Marketing) is a form of marketing that has emerged from a variety of recent
practices and studies, in which focus is placed on specific key individuals (or types of individual) rather than the
target market as a whole. It identifies the individuals that have influence over potential buyers, and orients marketing
activities around these influencers.
Influencers may be potential buyers themselves, or they may be third parties. These third parties exist either in the
supply chain (retailers, manufacturers, etc.) or may be so-called value-added influencers (such as journalists,
academics, industry analysts, professional advisers, and so on).[1]
What is “Influence”?
Most discussion on the generic topic of social influence centres on compliance and persuasion in a social
environment, as exemplified in Robert Cialdini’s book Influence: Science and Practice.[2] In the context of
Influencer Marketing, influence is less about argument and coercion to a particular point of view, and more about
loose interactions between various parties in a community. Influence is often equated to advocacy, but may also be
negative, and is thus related to concepts of promoters and detractors.[3]
Influencer marketing
Influencer Marketing as a Marketing Discipline
Influencer Marketing, as increasingly practiced in a commercial context, comprises four main activities:
Identifying influencers, and ranking them in order of importance.
Marketing to influencers, to increase awareness of the firm within the influencer community
Marketing through influencers, using influencers to increase market awareness of the firm amongst target markets
Marketing with influencers, turning influencers into advocates of the firm.
Influencer Marketing is enhanced by a continual evaluation activity that sits alongside the four main activities.
Influencer Marketing is not synonymous with word of mouth marketing (WOM), but influence may be transmitted in
this manner. Thus WOM is a core part of the mechanics of Influencer Marketing.[4]
There are substantial differences in the definition of what an influencer is. Peck defines influencers as "a range of
third parties who exercise influence over the organization and its potential customers".[5] Similarly, Brown and
Hayes define an influencer as "a third party who significantly shapes the customer's purchasing decision, but may
never be accountable for it.".[6] The Word of Mouth Marketing Association defines an influencer as "A person who
has a greater than average reach or impact through word of mouth in a relevant marketplace.[7] Keller and Berry note
that influencers are activists, are well-connected, have impact, have active minds, and are trendsetters,[8] though this
set of attributes is aligned specifically to consumer markets.
Exactly what is included in Influencer Marketing depends on the context (B2C or B2B) and the medium of influence
transmission (online or offline, or both). But it is increasingly accepted that companies are keen to identify and
engage with influencers. As Keller and Berry note, " Business is working harder and paying more to pursue people
who are trying to watch and listen less to its messages." Targeting influencers is seen as a means of amplifying
marketing messages, in order to counteract the growing tendency of prospective customers to ignore marketing.
Identifying influencers
The first step in Influencer Marketing is to identify influencers. Influencers are specific to discrete market segments,
and are used as conduits to the entire target segment. While there are lists of generic influencers (such as the Time
100) they have limited use in marketing programmes targeted at specific segments.
Market research techniques can be used to identify influencers, using pre-defined criteria to determine the extent and
type of influence. For example, Keller and Berry propose five attributes of influencers[9] :
Activists: influencers get involved, with their communities, political movements, charities and so on.
Connected: influencers have large social networks
Impact: influencers are looked up to and are trusted by others
Active minds: influencers have multiple and diverse interests
Trendsetters: influencers tend to be early adopters (or leavers) in markets
Most of the literature on influencers focuses on consumer markets. There is less insight into business-to-business
influencers. A key distinction between consumer and business markets is that most of the focus in consumer markets
is on consumer influencers themselves. This is because word of mouth communication is prevalent in consumer
environments.[10] In business marketing, influencers are people that affect a sale, but are typically removed from the
actual purchase decision. Consultants, analysts, journalists, academics, regulators, standards bodies are examples of
business influencers.
Not all business influencers are equal. Some have more influence than others, and some mechanism of ranking is
required, to distinguish between key influencers and less impactful people. A model for ranking business influencers
has been developed by Influencer50, thus:
• Market Reach – the number of people an individual has the ability to connect with.
• Independence – whether an influencer has a vested interest in promoting a particular point of view.
Influencer marketing
Frequency of Impact – the number of opportunities an individual has to influence buying decisions.
Expertise – how much of a subject matter expert is the influencer.
Persuasiveness - the degree of consequence in ignoring an influencer's advice.
Thoroughness of role - the extent to which influence is exerted across the decision lifecycle.
Several other companies including Ammo Marketing and Liquid Intelligence in the US, Agent Wildfire in Canada,
SCB Partners in Europe and Vocanic in Asia have developed their own proprietary methodologies for identifying
and targeting influencers for a market (or market sector).
Fred Reichheld, a consultant at Bain & Company, has developed a methodology to determine the extent to which
firms' growth is influenced by customers' propensity to make referrals to colleagues.[11] Reichheld distills his
research down to a single question: how likely is it that you would recommend company X to a friend or colleague?
From answers to this question, a Net Promoter Score is determined, which correlates strongly with a firm's growth
The Avant-Guide Institute, a New York–based trends consultancy, has a large proprietary network of influential
early-adaptors (called "Trendsformers") numbering in the thousands, including journalists, bloggers, academics,
industry analysts and professional advisors.
Using online social media tools to identify influencers
Web services can be used to crawl social media sites for users that exert influence in their respective communities.
Exactly how much is the user engaging the online community? The social influencer marketing firm then asks those
influencers to try client products/services and discuss them on their respective social networks. Clients can then
observe, through an enhanced digital dashboard, with metrics that measure the dissemination of brand mentions
across numerous web platforms.
There are at least 70 companies offering online influence measurement.[12] Advocates of this online-only approach
claim that online activity reflects (or pre-empts) the trends in offline transactions. For example, Razorfish released
one of the first social influencer marketing reports, entitled Fluent.[13] The report discusses many theories
surrounding social marketing, including the importance of the push/pull dynamic and online consumer
empowerment, authenticity and importance of buzz marketing.[14]
In addition, online activity can be a core part of offline decision making, as consumers research products and review
Critics of this online-only approach argue that only researching online sources misses critical influential individuals
and inputs.[16] They note that much influential exchange of information occurs in the offline world, and is not
captured in online media. Indeed, the majority of consumer exchanges occurs face-to-face, not in an online
environment, as evidenced by Carl.[17] He notes that "an overwhelming majority of WOM episodes (nearly 80%) ...
occur in face-to-face interpersonal settings, while online WOM accounted for only seven to ten percent of the
reported (WOM) episodes."
Carl concludes that "The majority of the WOM action still seems to be happening in the offline world. These
findings are especially provocative since they emerge at a time when more and more organizations are paying
attention to how their brands are discussed online and recent academic research has focused on online WOM. Thus it
is important for organizations to keep both online and offline conversations on their radar screen."
Keller Fay announced in 2007 that "While experts have previously estimated that 80% of marketing-relevant word of
mouth takes place “offline” (i.e., face-to-face or via telephone), the new results indicate that this figure is even higher
- 92%."[18]
More recently, Nate Elliott at Forrester observed that "the huge majority of users influence each other face to face
rather than through social online channels like blogs and social networks."[19]
And the Fluent report,[20] though generally orientated towards online measures admits that "it is necessary to
remember the effect that offline social activity has on purchasing decisions." It also notes that survey "respondents
Influencer marketing
trust offline friends most, with 73 percent indicating near or complete trust versus just 33 percent for online friends."
Influencer ecosystems and roles
Sources of influencers can be varied. Marketers traditionally target influencers that are easy to identify, such as
press, industry analysts and high profile executives. For most B2C purchases, however, influencers might include
people known to the purchaser and the retailer staff. In higher value B2B transactions the community of influencers
may be wide and varied, and include consultants, government-backed regulators, financiers and user communities.
Forrester analyst Michael Speyer notes that, for small and medium-size business, "IT sales are influenced by many
parties, including peers, consultants, bloggers, and technology resellers".[21] He advises that "Vendors need to
identify and characterize the influencers in their market. This requires a comprehensive influencer identification
program and the establishment of criteria for ranking influencer impact on the decision process."
An emerging exemplar of this approach is SAP AG, whose Influencer Relations approach is being documented by
Don Bulmer in his blog.[22]
As well as a variety of influencer sources, influencers can play a variety of roles at different times in a decision
process. This idea has been developed in Influencer Marketing by Brown & Hayes.[23] They map out how and when
particular types of influencer affect the decision process. This then enables marketers to selectively target influencers
depending on their individual profile of influence.
The influence of bloggers and other social media users is a topic of much discussion. This is covered in depth in Paul
Gillin’s The New Influencers.[24] Brown & Hayes also cover the subject but are less convinced of the importance of
the impact of social media, particularly in B2B settings.
Influencer marketing
Brown, Duncan and Hayes, Nick. Influencer Marketing: Who really influences your customers?, Butterworth-Heinemann, 2008
Cialdini, Robert. Influence: Science and Practice, Allyn and Bacon, 2001
Reichheld, Fred. The Ultimate Question: Driving Good Profits and True Growth, Harvard Business School Press, 2006
Brown, Duncan and Hayes, Nick. Influencer Marketing: Who really influences your customers?, Butterworth-Heinemann, 2008
Peck, Helen, Payne, Adrian, Christopher, Martin and Clark, Moira. Relationship Marketing: Srategy and Implmentation,
Butterworth-Heinemann, 1999
[6] Brown, Duncan and Hayes, Nick. Influencer Marketing: Who really influences your customers?, Butterworth-Heinemann, 2008
[7] WOMMA's Influencer Handbook (http:/ / womma. org/ influencerhandbook/ 2/ )
[8] Keller, Ed and Berry, Jon. The Influentials, Free Press, 2003
[9] Keller, Ed and Berry, Jon. The Influentials, Free Press, 2003
[10] Brown, Duncan and Hayes, Nick. Influencer Marketing: Who really influences your customers?, Butterworth-Heinemann, 2008
[11] Reichheld, Fred. The Ultimate Question: Driving Good Profits and True Growth, Harvard Business School Press, 2006
[12] The increasingly crowded market of Social Web Analytics (http:/ / www. marcomprofessional. com/ posts/ philip. sheldrake/
[13] Razorfish Report (http:/ / fluent. razorfish. com/ publication/ ?m=6540& l=1)
[14] Highlights of the Fluent Report (http:/ / sparxoo. com/ 2009/ 07/ 17/ social-influence-marketing-recap-of-the-fluent-report/ )
[15] McKinsey: The Consumer Decision Journey (http:/ / www. mckinseyquarterly. com/ Marketing/ Strategy/
The_consumer_decision_journey_2373/ )
[16] Brown, Duncan and Hayes, Nick. Influencer Marketing: Who really influences your customers?, Butterworth-Heinemann, 2008
[17] [Carl, W. J. (2006). What’s all the buzz about? Everyday communication and the relational basis of word-of-mouth and buzz marketing
practices. Management Communication Quarterly, 19(4), 601-634.]
[18] Keller Fay's TalkTrack Press Release May 15, 2007 (http:/ / www. kellerfay. com/ news/ TalkTrack5-15-06. pdf)
[19] Elliot, Nate. Using Social Media To Create And Amplify Offline Influence (http:/ / blogs. forrester. com/ marketing/ 2009/ 09/
using-social-media-to-create-and-amplify-offline-influence. html)
[20] Highlights of the Fluent Report (http:/ / sparxoo. com/ 2009/ 07/ 17/ social-influence-marketing-recap-of-the-fluent-report/ )
[21] Speyer, Michael. Identifying IT Buyers’ Hidden Influencers: Finding And Nurturing Your Brand Presence Beyond Your Formal Channels,
Forrester Research, 2007
[22] Don Bulmer's Everyday Influence blog (http:/ / everydayinfluence. typepad. com/ )
[23] Brown, Duncan and Hayes, Nick. Influencer Marketing: Who really influences your customers?, Butterworth-Heinemann, 2008
[24] Gillin, Paul. The New Influencers, Quill Driver, 2007
External links
• Word of Mouth Marketing Association (
• Deep Dive Marketing/Influencer Marketing (
) is a blog about Influencer Marketing
• Influencer Marketing ( book web site
• ATA research ( focusses on IT analyst influencer's
• How They Change Your Mind ( The social impact of undisclosed
• The Ultimate Question site (
• Marketing Is Broken, Influencers Can Fix It (
#video_link) Nick Hayes presents an overview of Influencer Marketing in this video
• 30 free tools for finding online influencers (
Internet marketing
Internet marketing
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Internet marketing, also known as digital marketing, web marketing, online marketing, search marketing or
e-marketing, is the marketing (generally promotion) of products or services over the Internet.
Internet marketing is considered to be broad in scope[1] because it not only refers to marketing on the Internet, but
also includes marketing done via e-mail and wireless media.[2] Digital customer data and electronic customer
relationship management (ECRM) systems are also often grouped together under internet marketing.[3]
Internet marketing ties together the creative and technical aspects of the Internet, including design, development,
advertising, and sales.[4] Internet marketing also refers to the placement of media along many different stages of the
customer engagement cycle through search engine marketing (SEM), search engine optimization (SEO), banner ads
on specific websites, email marketing, and Web 2.0 strategies.
In 2008, The New York Times, working with comScore, published an initial estimate to quantify the user data
collected by large Internet-based companies. Counting four types of interactions with company websites in addition
to the hits from advertisements served from advertising networks, the authors found that the potential for collecting
data was up to 2,500 times per user per month.[5]
Internet marketing
Business models
Internet marketing is associated with several business models:
• E-commerce: a model whereby goods are sold directly to consumers (B2C), businesses (B2B), or from consumer
to consumer (C2C).
• Lead-based websites: a strategy whereby an organization generates value by acquiring sales leads from its
website. Similar to walk-in customers in retail world. These prospects are often referred to as organic leads.
• Affiliate Marketing: a process wherein a product or service developed by one entity is sold by other active sellers
for a share of profits. The entity that owns the product may provide some marketing material (e.g., sales letters,
affiliate links, tracking facilities, etc.); however, the vast majority of affiliate marketing relationships come from
e-commerce businesses that offer affiliate programs.
• Local Internet marketing: a strategy through which a small company utilizes the Internet to find and to nurture
relationships that can be used for real-world advantages. Local Internet marketing uses tools such as social media
marketing, local directory listing,[6] and targeted online sales promotions.
One-to-one approaches
In a one-to-one approach, marketers target a user browsing the Internet alone and so that the marketers' messages
reach the user personally.[7] This approach is used in search marketing, for which the advertisements are based on
search engine keywords entered by the users. This approach usually works under the pay per click (PPC) method.
Appeal to specific interests
When appealing to specific interests, marketers place an emphasis on appealing to a specific behavior or interest,
rather than reaching out to a broadly defined demographic. These marketers typically segment their markets
according to age group, gender, geography, and other general factors.
Niche Marketing
Niche and hyper-niche internet marketing put further emphasis on creating destinations for web users and consumers
on specific topics and products. Niche marketers differ from traditional Internet marketers as they have a more
specialized topic knowledge. For example, whereas in traditional Internet marketing a website would be created and
promoted on a high-level topic such as kitchen appliances, niche marketing would focus on more specific topics such
as 4-slice toasters.
Niche marketing provides end users of such sites very targeted information, and allows the creators to establish
themselves as authorities on the topic or product.
In Internet marketing, geo targeting and geo marketing are the methods of determining the geolocation of a website
visitor with geolocation software, and delivering different content to that visitor based on his or her location, such as
latitude and longitude, country, region or state, city, metro code or zip code, organization, Internet Protocol (IP)
address, ISP, and other criteria.
Internet marketing principles
6 key principles of persuasion by Robert Cialdini
One of the most famous guides to internet marketing is the book by Robert Cialdini[8] "Influence: The Psychology of
Persuasion." [9] According to Cialdini there are 6 key principles of persuasion: 1. Connection, 2. Scarcity, 3.
Sympathy, 4. Reputation, 5. Popularity, 6. Persistence.
Internet marketing
Advantages and Limitations of Internet marketing
Internet marketing is inexpensive when examining the ratio of cost to the reach of the target audience. Companies
can reach a wide audience for a small fraction of traditional advertising budgets. The nature of the medium allows
consumers to research and to purchase products and services conveniently. Therefore, businesses have the advantage
of appealing to consumers in a medium that can bring results quickly. The strategy and overall effectiveness of
marketing campaigns depend on business goals and cost-volume-profit (CVP) analysis.
Internet marketers also have the advantage of measuring statistics easily and inexpensively; almost all aspects of an
Internet marketing campaign can be traced, measured, and tested. The advertisers can use a variety of methods, such
as pay per impression, pay per click, pay per play, and pay per action. Therefore, marketers can determine which
messages or offerings are more appealing to the audience. The results of campaigns can be measured and tracked
immediately because online marketing initiatives usually require users to click on an advertisement, to visit a
website, and to perform a targeted action.
However, from the buyer's perspective, the inability of shoppers to touch, to smell, to taste, and "to try on" tangible
goods before making an online purchase can be limiting. However, there is an industry standard for e-commerce
vendors to reassure customers by having liberal return policies as well as providing in-store pick-up services.
Security concerns
Information security is important both to companies and consumers that participate in online business. Many
consumers are hesitant to purchase items over the Internet because they do not believe that their personal information
will remain private. Some companies that purchase customer information offer the option for individuals to have
their information removed from their promotional redistribution, also known as opting out. However, many
customers are unaware if and when their information is being shared, and are unable to stop the transfer of their
information between companies if such activity occurs. Additionally, companies holding private information are
vulnerable to data attacks and leaks.
Internet browsing privacy is a related consumer concern. Web sites routinely capture browsing and search history
which can be used to provide targeted advertising. Privacy policies can provide transparency to these practices.
Spyware prevention software can also be used to shield the consumer.
Another consumer e-commerce concern is whether or not they will receive exactly what they purchase. Online
merchants have attempted to address this concern by investing in and building strong consumer brands (e.g.,, eBay, and, and by leveraging merchant and feedback rating systems and e-commerce
bonding solutions. All these solutions attempt to assure consumers that their transactions will be free of problems
because the merchants can be trusted to provide reliable products and services. Additionally, several major online
payment mechanisms (credit cards, PayPal, Google Checkout, etc.) have provided back-end buyer protection
systems to address problems if they occur.
Usage trends
Technological advancements in the telecommunications industry have dramatically affected online advertising
techniques. Many firms are embracing a paradigm that is shifting the focus of advertising methodology from
traditional text and image advertisements to those containing more recent technologies like JavaScript and Adobe
Flash. As a result, advertisers can more effectively engage and connect their audience with their campaigns that seek
to shape consumer attitudes and feelings towards specific products and services.
Internet marketing
Effects on industries
The number of banks offering the ability to perform banking tasks over the internet has increased. Online banking
appeals to customers because it is often faster and considered more convenient than visiting bank branches.[10]
Internet auctions
Internet auctions have become a multi-billion dollar business. Unique items that could only previously be found at
flea markets are now being sold on Internet auction websites such as eBay. Specialized e-stores sell a vast amount of
items like antiques, movie props, clothing, gadgets, and so on.[11] [12]
As the premier online reselling platform, eBay is often used as a price-basis for specialized items. Buyers and sellers
often look at prices on the website before going to flea markets; the price shown on eBay often becomes the item's
selling price.
Advertising industry
In addition to the major effect internet marketing has had on the technology industry, the effect on the advertising
industry itself has been profound. In just a few years, online advertising has grown to be worth tens of billions of
dollars annually.[13] [14] [15] PricewaterhouseCoopers reported that US$16.9 billion was spent on Online marketing in
the U.S. in 2006.[16]
This has caused a growing impact on the United States' electoral process. In 2008, candidates for President heavily
utilized Internet marketing strategies to reach constituents. During the 2007 primaries candidates added, on average,
over 500 social network supporters per day to help spread their message.[17] President Barack Obama raised over
US$1 million in one day during his extensive Democratic candidacy campaign, largely due to online donors.[18]
Several industries have heavily invested in and benefited from internet marketing and online advertising. Some of
them were originally brick and mortar businesses such as publishing, music, automotive or gambling, while others
have sprung up as purely online businesses, such as digital design and media, blogging, and internet service hosting.
[1] "Internet Marketing - How, When, Where?" (http:/ / print. dailymirror. lk/ business/ 127-local/ 38977. html). Daily Mirror. . Retrieved 24
March 2011.
[2] "Former Wachovia Direct Marketing Executives Launch Full Service Online Marketing and Web Design Company" (http:/ / www. prweb.
com/ releases/ eSynergize/ Online-Marketing/ prweb5163484. htm). . Retrieved 24 March 2011.
[3] Jaakko Sinisalo et al. (2007). "Mobile customer relationship management: underlying issues and challenges" (in (English)). Business
Process Management Journal 13 (6): 772. doi:10.1108/14637150710834541.
[4] Charlesworth, Alan (2009). Internet marketing: a practical approach. Butterworth-Heinemann. pp. 49.
[5] Story, Louise and comScore (March 10, 2008). "They Know More Than You Think" (http:/ / www. nytimes. com/ imagepages/ 2008/ 03/ 10/
technology/ 20080310_PRIVACY_GRAPHIC. html) (JPEG). The New York Times. . in Story, Louise (March 10, 2008). "To Aim Ads, Web
Is Keeping Closer Eye on You" (http:/ / www. nytimes. com/ 2008/ 03/ 10/ technology/ 10privacy. html). The New York Times (The New
York Times Company). . Retrieved 2008-03-09.
[6] Rayner, Andrew (April 21, 2010). "Put the E-mphasis on Local Internet Marketing and reach first page on Google" (http:/ / www. prlog. org/
10638959-put-the-mphasis-on-local-internet-marketing-and-reach-first-page-on-google. html). . Retrieved August 15, 2010.
[7] http:/ / www. managingchange. com/ onetoone/ overview. htm
[8] http:/ / www. influenceatwork. com/
[9] http:/ / www. squeezedbooks. com/ book/ show/ 25/ influence-the-psychology-of-persuasion-collins-business-essentials
[10] http:/ / www. consumeraffairs. com/ news04/ online_banking_survey. html
[11] Mohr, Ian (February 27, 2006). "Movie props on the block: Mouse to auction Miramax leftovers" (http:/ / www. variety. com/ article/
VR1117938954. html?categoryid=1238& cs=1). pReed Business Information. .
[12] James, David (February 24, 2007). "Bid on Dreamgirls Costumes for Charity"" (http:/ / offtherack. people. com/ 2007/ 02/ dress_like_a_dr.
html#comment-66215834). Time, Inc.. .
[13] eMarketer - Online Ad Spending to Total $19.5 Billion in 2007 (http:/ / www. emarketer. com/ Article. aspx?1004635) (2007-2-28)
[14] The Register - Internet advertising shoots past estimates (http:/ / www. theregister. co. uk/ 2006/ 09/ 29/ internet_advertising_booms/ )
Internet marketing
[15] Internet Advertising Bureau - Online Adspend (http:/ / www. iabuk. net/ en/ 1/ iabknowledgebankadspend. html) (2007-06-18)
[16] PricewaterhouseCoopers reported U.S. Internet marketing spend totaled $16.9 billion (http:/ / www. directtraffic. org/ OnlineNews/
Internet_marketing_20075115473. html) in 2006" (Accessed 18-June-2007)
[17] "Spartan Internet Consulting - Political Performance Index (http:/ / spartaninternet. com/ 2008/ news. asp?id=9) (SIPP)" (Accessed
[18] "Center For Responsive Politics (http:/ / www. opensecrets. org/ pres08/ summary. php?id=N00009638) Fundraising Profile Barack Obama"
(Accessed 28-June-2008)
Kaspid Information Technology LTd
Area served
Iran , England
Key people
Hamid Sepidnam
(CEO) Farhad kazemi
(General Manager)
Web Design Services
Business Consulting Services
Pay Per Click
Kaspid Information Technology (Persian: ‫ )دیپساک تاعالطا و تاطابترا یروانف تکرش‬is a web design and Internet
marketing company headquartered in (Bournemouth, England).
The company employs 26-50 people, in addition to generating revenue of between £250,000 and £999,000 as of June
2011.[3] In addition to web design services, Kaspid provides search engine optimization, Pay Per Click and business
consulting services.[4] , whilst a monthly survey conducted by Topseo named it the 18th Best Integrated Search
(SEO & PPC) Company United Kingdom as of June 2011.[5]
The company was established in 1999, at which time it solely offered web design services. The company, then called
Kaspid Information Technology Limited, maintained representative offices in Tehran and Mashhad, as well as in
Bournemouth in the UK.
The company shifted its focus between 1999 and 2008, turning its attentions towards business opportunities in web
marketing, a service that was then only in its nascent stages in Iran.[6] Kaspid was also the first company to market
SEO & Pay Per Click services for Persian web sites.
Majority shareholder Hamid Sepidnam took over as CEO of the company in 2008, eventually turning it into one of
Iran's largest providers of web design and Internet marketing services. He later decided to establish a branch of
Kaspid in Bournemouth in England, leading it to its subsequent popularity as an integrated search (SEO & PPC)
Kaspid Name abbreviation
The Kaspid name is an abbreviation of Hamid Sepidnam and the last name of Farhad kazemi Motlagh, namely KA
from Kazemi and SPID from Sepidnam.
http:/ / www. kaspid. co. uk
http:/ / www. kaspid. com
"Kaspid in TopSeo" (http:/ / www. topseos. co. uk/ rankings-of-best-integrated-search-seo-and-ppc-companies). . Retrieved June 2011.
"Company Profile Kaspid LTD" (http:/ / kaspid-ltd. topseos. co. uk). . Retrieved Jan 25,2011.
"Best Integrated Search (SEO & PPC) Company (ies) in United Kingdom" (http:/ / kaspid-ltd. topseos. co. uk). . Retrieved June 2011.
"Kaspid to Attend 2011 Search Engine Strategies Seminar in London" (http:/ / www. prweb. com/ releases/ 2011/ 02/ prweb5067154. htm). .
Retrieved April 6, 2011.
External links
• Official site in English (
• Official site in Persian (
• Company Profile (
• Official Facebook Fanpage (http://www.Facebook/kaspid/)
Loyalty marketing
Loyalty marketing
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Loyalty marketing is an approach to marketing, based on strategic management, in which a company focuses on
growing and retaining existing customers through incentives. Branding, product marketing and loyalty marketing all
form part of the customer proposition – the subjective assessment by the customer of whether to purchase a brand or
not based on the integrated combination of the value they receive from each of these marketing disciplines.[1]
The discipline of customer loyalty marketing has been around for many years, but expansions from it merely being a
model for conducting business to becoming a vehicle for marketing and advertising have made it omnipresent in
consumer marketing organizations since the mid- to late-1990s. Some of the newer loyalty marketing industry
insiders, such as Fred Reichheld, have claimed a strong link between customer loyalty marketing and customer
referral. In recent years, a new marketing discipline called "customer advocacy marketing" has been combined with
or replaced "customer loyalty marketing." To the general public, many airline miles programs, hotel frequent guest
programs and credit card incentive programs are the most visible customer loyalty marketing programs.[2]
Loyalty marketing
Retail merchandising
Premiums are items that a retail customer can receive by redeeming proofs of purchase from a specific product or
store. This was one of the first loyalty marketing programs.
Early premium programs
Beginning in 1793, a U.S. merchant started giving out copper tokens which could be collected by the consumer and
exchanged for items in the store. This practice caught on and was used by many merchants throughout the 19th
century. Sweet Home laundry soap, a product of the B. A. Babbit Company, came with certificates that could be
collected and redeemed for color lithographs. Beginning in 1872, the Grand Union Tea Company gave tickets to
customers that could be exchanged for merchandise in the company catalog of Grand Union stores.
Trading stamps
The first trading stamps were introduced in 1891, the Blue Stamp Trading System, where stamps affixed to booklets
could be redeemed for store products.[3] The Sperry and Hutchinson Company, started in 1896 in Jackson, Michigan,
was the first third-party provider of trading stamps for various companies, including dry goods dealers, gas stations
and later supermarkets. S&H Green Stamps, as the company was commonly called, opened its first redemption
center in 1897. Customers could take their filled booklets of "green stamps" and redeem them for household
products, kitchen items, and personal items. When the G.I.s returned from World War II the trading stamps business
took off when numerous third-party companies created their own trading stamp programs to offer to supermarkets
and other retailers.[4]
Marketing through children
Marketers of retail products used programs targeted at children to sell to their parents through the use of premiums.
Kellogg's Corn Flakes had the first cereal premium with The Funny Jungleland Moving Pictures Book. The book
was originally available as a prize that was given to the customer in the store with the purchase two packages of the
cereal.[5] But in 1909, Kelloggs changed the book give-away to a premium mail-in offer for the cost of a dime. Over
2.5 million copies of the book were distributed in different editions over a period of 23 years.[6]
At the beginning of the Second World War, radio was a big player in the promotion and distribution of premiums,
usually toys that were closely related to the radio program. There were many radio shows that offered premiums to
their listeners, but Captain Midnight was one of the best known. The early sponsor of Captain Midnight was Skelly
Oil, and parents could get forms to mail-in for radio premiums at the gas stations. Later, Ovaltine became the
sponsor of Captain Midnight, and it continued the premiums through advertising on the labels and foil tops of
Ovaltine that could be collected to exchange for Captain Midnight premiums and offering membership to the "Secret
In 1929, Betty Crocker issued coupons that could be used to redeem for premiums like free flatware. In 1937 the
coupons were printed on the outside of packages, and later the Betty Crocker points program produced a popular
reward catalog from which customers could pick rewards using their points. In 2006, it was announced that the Betty
Crocker Catalog was going out of business and that all points needed to be redeemed by December 15, 2006. With it,
one of the earliest loyalty programs ended a 77 year tradition.[8]
Loyalty marketing
Prizes are promotional items—small toys, games, trading cards, collectables, and other small items of nominal
value—found in packages of brand-name retail products (or available from the retailer at the time of purchase) that
are included in the price of the product (at no extra cost) with the intent to boost sales.
Tobacco inserts
Some of the earliest prizes were cigarette cards — trade cards advertising the product (not to be confused with
trading cards) that were inserted into paper packs of cigarettes as stiffeners to protect the contents. Allan and Ginter
in the U.S. in 1886, and British company W.D. & H.O. Wills in 1888, were the first tobacco companies to print
advertisements and, a couple years later, lithograph pictures on the cards with an encyclopedic variety of topics from
nature to war to sports — subjects that appealed to men who smoked.[9] By 1900, there were thousands of tobacco
card sets manufactured by 300 different companies.[10] Following the success of cigarette cards, trade cards were
produced by manufacturers of other products and included in the product or handed to the customer by the store
clerk at the time of purchase.[9] World War II put an end to cigarette card production due to limited paper resources,
and after the war cigarette cards never really made a comeback. After that collectors of prizes from retail products
took to collecting tea cards in the UK and bubble gum cards in the US.[11]
Trade cards to trading cards
The first baseball cards were trade cards featuring the Brooklyn Atlantics produced in 1868 by Peck and Snyder, a
sporting goods company that manufactured baseball equipment. In 1869, Peck and Snyder trade cards featured the
first professional team, the Red Stockings.[12] Most of the baseball cards around the beginning of the 20th century
came in candy and tobacco products produced by such companies as Breisch-Williams confectionery company of
Oxford, Pennsylvania,[13] American Caramel Company, the Imperial Tobacco Company of Canada,[14] and Cabañas,
a Cuban cigar manufacturer.[15] In fact it is a baseball set, known as the T-106 tobacco card set, distributed by the
American Tobacco Company in 1909 that is considered by collectors to be the most popular set of cigarette cards.[16]
In 1933, Goudey Gum Company of Boston issued baseball cards with players biographies on the backs and was the
first to put baseball cards in bubble gum.[17] Bowman Gum of Philadelphia issued its first baseball cards in 1948 and
became the biggest issuer of baseball cards from 1948 to 1952.
Modern packaged foods
The most famous use of prizes in the United States (and the word "prize" in this context) is Cracker Jack brand
popcorn confection. Prizes have been inserted into every package of Cracker Jack continuously since 1912.[18] W.K.
Kellogg was the first to introduce prizes in boxes of cereal. The marketing strategy that he established has produced
thousands of different cereal box prizes that have been distributed by the tens of billions.[19] Frito-Lay is a world
icon in the field of in-package prizes. Besides being the current owner of Cracker Jack, the U.S. popcorn confection
brand known for the "Prize Inside",[20] Frito-Lay also regularly includes tazos and tattoos in packages of Lay's chips
worldwide. In parts of Latin America, Frito-Lay has even introduced a brand called Cheetos Sorpresa (English:
Surprise), which includes a licensed prize (from movies, television, and video games) in every 29–gram bag.[21]
Direct marketing pioneers
Ward: the father of mail order
By creating a direct marketing industry through his mail order catalogue, Aaron Montgomery Ward would
unknowingly enable the creation of a powerful global network that would include everything from mailing, to mail
order, to telemarketing and lastly to social medias.[22] Together Ward and his [long time] competitor Sears changed
the direction of the American marketplace by introducing the concept of individuality with the term consumption,
allowing therefore the generations of today to take full control of their consumption behaviours and all of this in
Loyalty marketing
complete privacy.[23] Today, the mail order catalogue industry Montgomery funded is worth approximately 100
billions of dollars,[23] and generates over 2 trillion only in [incremental] sales and supports till this day an estimated
10.9 million jobs either directly related to marketing industry or dependent upon it.[22]
Wunderman: direct marketing genius
Mail order pioneer Aaron Montgomery Ward knew that by using the technique of selling product directly to the
consumer at appealing prices could, if executed effectively and efficiently, revolutionize the market industry and
therefore be used as an innovative model for marketing products and creating customer loyalty.[22] The term "direct
marketing" was coined long after Montgomery Ward`s time. In 1967 Lester Wunderman identified, named, and
defined "direct marketing". Wunderman — considered to be the father of contemporary direct marketing — is
behind the creation of the toll-free 1-800 number[22] and numerous mail order based loyalty marketing programs
including the Columbia Record Club, the magazine subscription card, and the American Express Customer Rewards
Modern consumer rewards programs
Frequent flyers
On May 1, 1981 American Airlines launched the first full-scale loyalty marketing program of the modern era with
the AAdvantage frequent flyer program.[25] This revolutionary program was the first to reward "frequent fliers" with
reward miles that could be accumulated and later redeemed for free travel. Many airlines and travel providers saw
the incredible value in providing customers with an incentive to use a company exclusively and be rewarded for their
loyalty. Within a few years, dozens of travel industry companies launched similar programs. The AAdvantage
program now boasts over 50 million active members.[26]
Loyalty marketing impact
Many loyalty programs have changed the way consumers interact with the companies from which they purchase
products or services from and how much consumers spend. Many consumers in the US and Europe have become
quite accustomed to the rewards and incentives they receive by being a "card carrying" member of an airline, hotel or
car rental program. In addition, research from Chris X. Moloney shows that nearly half of all credit card users in the
US utilize a points-based rewards program.[27]
In recent years, the competition for high income customers has led many of these loyalty marketing program
providers to provide significant perks that deliver value well beyond reward points or miles. Both American's
AAdvantage program and Starwood Hotels' Preferred Guest program have received industry awards, called "Freddie
Awards" by Inside Flyer Magazine and its publisher Randy Petersen for providing perks that customers value highly.
These perks have become as important to many travelers as their reward miles according to research.
In his book, Loyalty Rules!, Fred Reichheld details the value to customer referral on the growth and financial
performance of dozens of leading US firms. Reichheld purports that the measurement of company advocates, or
promoters, is the strongest single measurable correlation between customers and corporate performance. Similarly,
Chris X. Moloney has presented new findings ((Loyalty World London 2006)) that showed a magnetic value to a
company to promote and measure customer referrals and advocacy via research and marketing.
Loyalty marketing
Loyalty marketing and the loyalty business model
The loyalty business model relies on training of employees to achieve a specific paradigm: quality of product or
service leads to customer satisfaction, which leads to customer loyalty, which leads to profitability. Loyalty
marketing is an extension of that effort, relying upon word-of-mouth and advertising to draw upon the positive
experiences of those exposed to loyalty business model inspired ventures to attract new customers. Fred Reichheld
makes the point in his books that one can leverage the "power of extension" to draw new customers.[28]
The rapid expansion of frequent-flyer programs is due to the fact that loyalty marketing relies on the earned loyalty
of current customers to attract new loyalty from future customers. Incentive programs that are exclusive must strike a
balance between increasing benefits for new customers over any existing loyalty plan they are currently in and
keeping existing customers from moving to new plans. Hallmark did this through devising a program that directly
rewarded customers not only for buying merchandise and utilizing, but gaining additional benefits
through referring their friends.[29]
The most recent loyalty marketing programs rely on viral marketing techniques to spread word of incentive and
inducement programs through word of mouth.
[1] Evans, Stuart. (2007) "No Such Thing as Loyalty", (http:/ / www. iclployalty. com), 2007.
[2] Fred Reichheld (1996) Loyalty Rules!, Harvard Business School Press, Boston, 2001.
[3] Lonto, Jeff R. (2004a). "THE TRADING STAMP STORY (or When Trading Stamps Stuck) Part 1" (http:/ / www. studioz7. com/ stamps1.
[4] Lonto, Jeff R. (2004b). "THE TRADING STAMP STORY (or When Trading Stamps Stuck) Part 2" (http:/ / www. studioz7. com/ stamps2.
[5] Phil Ament. "Corn Flakes History - Invention of Kellogg's Corn Flakes" (http:/ / www. ideafinder. com/ history/ inventions/ kelloggcf. htm). . Retrieved 2010-12-27.
[6] "Kellogg's Offers First Cereal Premium Prize" (http:/ / timelines. com/ 1910/ kelloggs-offers-first-cereal-premium-prize). .
Retrieved 2010-12-27.
[7] Widner, James F. (1998). "Captain Midnight — History" (http:/ / www. otr. com/ cm_history. shtml). Old Time Radio. .
[8] Fred Reichheld (1996) The Loyalty Effect, Harvard Business School Press, Boston, 1996.
[9] The History of Cartophily (http:/ / www. stevetalbot. com/ cards/ history. php)
[10] A Social History Lesson Up In Smoke — Cartophily (http:/ / www. historic-uk. com/ CultureUK/ CigaretteCards. htm)
[11] Cigarette Card Guide (Collectibles) History and Grading (http:/ / reviews. ebay. com/
[12] Early Trade Cards (http:/ / www. cycleback. com/ 1800s/ trade. htm)
[13] Baseball Caramel Cards E107 Breisch-Williams (http:/ / www. caramel-cards. com/ e107. html)
[14] 1912 C46 Imperial Tobacco (http:/ / www. oldcardboard. com/ foreign/ canada/ c/ c46/ c46. asp?cardsetID=1004)
[15] 1909 Cabañas (http:/ / www. cubanbaseballcards. com/ Cabanas. html)
[16] Tobacco Baseball Cards (http:/ / www. baseball-almanac. com/ treasure/ autont005. shtml)
[17] The History of Goudey Gum Company (http:/ / www. psacard. com/ articles/ article_view. chtml?artid=3886& type=1)
[18] Cracker Jack Collectors Association - History (http:/ / www. crackerjackcollectors. com/ cjcahistory. htm)
[19] http:/ / promomagazine. com/ campaigns/ marketing_good_old_days/
[20] Frito-Lay Company to Acquire Cracker Jack (http:/ / www. allbusiness. com/ food-beverage/ food-industry-food-mfg-snack/ 7052133-1.
[21] Cheetos Sorpresa trae para ti una congelada y divertida sorpresa: Le Era de Hielo 3 (http:/ / www. multipress. com. mx/ articulos.
php?id_sec=10& id_art=7078& id_ejemplar=0)(Spanish)
[22] Brandweek 50,no.36.D1-D4 "The Next Generation of DIRECT MARKETING." Academic Search Complete, EBSCOhost, 2009,p.6.
[23] Root, Damon. "Marketplace of Ideas." Academic Search Complete, EBSCOhost, 2009, p.1.
[24] Marketing Legend Lester Wunderman Live on ‘The Alan Levy Show’ (http:/ / blog. blogtalkradio. com/ advertising/
marketing-legend-lester-wunderman-live-alan-levy-show/ )
[25] Philip Kotler. According to Kotler: The World's Foremost Authority on Marketing Answers Your Questions. AMACOM Div American
Mgmt Assn. 2005. ISBN 0814472958
[26] American Airlines AAdvantage | Frequent Flyer Points | Airline Mileage | (http:/ / www. aa. com/ content/ AAdvantage/
programDetails/ main. jhtml)
Loyalty marketing
[27] Chris X. Moloney (2006) "Winning Your Customer's Loyalty: The Best Tools, Techniques and Practices" AMA Workshop Event(s). Misc.
materials distributed related to event(s). San Diego, 2006.
[28] Carrol, P. and Reichheld, F. (1992) "The fallacy of customer retention", Journal of Retail Banking, vol 13, no 4, 1992.
[29] Scott Robinette, Vicki Lenz, Claire Brand. Emotion Marketing: The Hallmark Way of Winning Customers for Life. McGraw-Hill
Professional, 2000. ISBN 0071364145
Marketing communications
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Marketing Communications (or MarCom or Integrated Marketing Communications) are messages and related
media used to communicate with a market. Marketing communications is the "promotion" part of the "Marketing
Mix" or the "four Ps": price, place, promotion, and product.
Those who practice advertising, branding, brand language, direct marketing, graphic design, marketing, packaging,
promotion, publicity, sponsorship, public relations, sales, sales promotion and online marketing are termed
marketing communicators, marketing communication managers, or more briefly, marcom managers.
The communication process is sender-encoding-transmission device-decoding-receiver, which is part of any
advertising or marketing program. Encoding the message is the second step in communication process, which takes a
creative idea and transforms it into attention-getting advertisements designed for various media (television, radio,
magazines, and others). Messages travel to audiences through various transmission devices. The third stage of the
marketing communication process occurs when a channel or medium delivers the message. Decoding occurs when
the message reaches one or more of the receiver's senses. Consumers both hear and see television ads. Others
consumers handle (touch) and read (see) a coupon offer. One obstacle that prevents marketing messages from being
Marketing communications
efficient and effective is called barrier. Barrier is anything that distorts or disrupts a message. It can occur at any
stage in the communication process. The most common form of noise affecting marketing communication is
Traditionally, marketing communications practitioners focused on the creation and execution of printed marketing
collateral; however, academic and professional research developed the practice to use strategic elements of branding
and marketing in order to ensure consistency of message delivery throughout an organization - a consistent "look &
feel". Many trends in business can be attributed to marketing communications; for example: the transition from
customer service to customer relations, and the transition from human resources to human solutions and the trends to
blogs, email, and other online communication derived from an elevator pitch.
In branding, every opportunity to impress the organization's (or the individual's) brand upon the customer is called a
brand touch point (or brand contact point.) Examples include everything from TV and other media advertisements,
event sponsorships, webinars, and personal selling to even product packaging. Thus, every experiential opportunity
that an organization creates for its stakeholders or customers is a brand touch point. Hence, it is vitally important for
brand strategists and managers to survey all of their organization's brand touch points and control for the
stakeholder's or customer's experience. Marketing communications, as a vehicle of an organization's brand
management, is concerned with the promotion of an organization's brand, product(s) and/or service(s) to
stakeholders and prospective customers through these touch points.
Marketing communications is focused on the product/service as opposed to corporate communications where the
focus of communications work is the company/enterprise itself. Marketing communications is primarily concerned
with demand generation and product/service positioning while corporate communications deal with issue
management, mergers and acquisitions, litigation, etc.
[1] Clow, Kenneth E & Donald Baack. "Integrated Advertising Promotion and Marketing Communications", 3rd Edition, Upper Saddle River,
External links
• The Journal of Integrated Marketing Communications (
• STC Marketing Communication Special Interest Group (
Megamarketing is a term coined by U.S. marketing academic, Philip Kotler, to describe the type of marketing
activity required when it is necessary to manage elements of the firm's external environment (governments, the
media, pressure groups, etc) as well as the marketing variables; Kotler suggests that two more Ps must be added to
the marketing mix: public relations and power.
External links
• Materials from Harvard Business Online [1]
• Philip Kotler, 'Megamarketing', Harvard Business Review (March-April 1986)
[1] http:/ / doi. contentdirections. com/ mr/ hbsp. jsp?doi=10. 1225/ 86205
Multi-level marketing
Multi-level marketing
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales
they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a
hierarchy of multiple levels of compensation.[1] Other terms for MLM include network marketing,[2] [3] [4]
pyramid selling,[5] [6] [7] [8] [9] and referral marketing.[10]
Most commonly, the salespeople are expected to sell products directly to consumers by means of relationship
referrals and word of mouth marketing.[1] Some people equate MLM with direct selling, although MLM is only one
type of direct selling.[1] [2] [11]
MLM companies have been a frequent subject of criticism as well as the target of lawsuits. Criticism has focused on
their similarity to illegal pyramid schemes, price-fixing of products, high initial start-up costs, emphasis on
recruitment of lower-tiered salespeople over actual sales, encouraging if not requiring salespeople to purchase and
use the company's products, potential exploitation of personal relationships which are used as new sales and
recruiting targets, complex and sometimes exaggerated compensation schemes, and cult-like techniques which some
groups use to enhance their members' enthusiasm and devotion.[10] [12] Not all MLM companies operate the same
way, and MLM groups have persistently denied that their techniques are anything but legitimate business practices.
In contrast to MLM is single-level marketing. In single-level marketing, the salesperson is rewarded for selling the
product, but not for recruiting or sponsoring other salespeople.[13]
Multi-level marketing
Direct selling, network marketing, and multi-level marketing
"Network Marketing" and "Multi-level Marketing" are generally considered to be synonyms, and a subset of direct
selling.[1] While "direct selling" and "network marketing" refer primarily to the distribution system, the term
"multi-level marketing" emphasizes the compensation plan more.[1] Network Marketing tends to be modern
preferred term,[14] however many other terms are also used, including word-of-mouth marketing, interactive
distribution, relationship marketing and others. Critics have argued that the use of different terms and "buzzwords" is
an effort to distinguish multi-level marketing from illegal Ponzi schemes, chain letters, and consumer fraud
scams.[14] Some sources classify multi-level marketing as a form of direct selling rather than being direct selling.[13]
[15] [16]
The Direct Selling Association, an American industry body, reported that in 1990 twenty-five percent of members
used MLM, growing to 77.3 percent in 1999.[17] Companies such as Avon, Electrolux, Tupperware,[18] and Kirby all
originally used single level marketing to sell their goods and later introduced multi-level compensation plans.[19] By
2009, 94.2% of members were using MLM, accounting for 99.6% of sellers, and 97.1% of sales.[20] The DSA has
approximately 200 members [21] while it is estimated there are over 1000 firms using multi-level marketing in the
US alone.[22]
It is generally accepted that the first multi-level marketing plan was introduced in 1945 by the California Vitamin
Company (shortly afterwards to become Nutrilite).[13] [23] The plan allowed Nutrilite distributors with at least 25
regular customers to recruit new distributors and draw a 3 percent commission from their sales. Unlike traditional
direct selling, this was an ongoing payment whenever the customer re-ordered, allowing direct sellers to build a sales
organization that could generate a residual-like income.[23]
Independent, unsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent
business owners, dealers, franchise owners, sales consultants, consultants, independent agents, etc.), represent the
company that produces the products or provides the services they sell. They are awarded a commission based upon
the volume of product sold through their own sales efforts as well as that of their downline organization.
Independent distributors develop their organizations by either building an active customer base, who buy direct from
the company, or by recruiting a downline of independent distributors who also build a customer base, thereby
expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they
purchased from the company at wholesale price.
Income levels
Several sources have commented on the income level of specific MLMs or MLMs in general:
• The Times: "The Government investigation claims to have revealed that just 10% of Amway's agents in Britain
make any profit, with less than one in ten selling a single item of the group's products."[24]
• Scheibeler, a high level "Emerald" Amway member: "UK Justice Norris found in 2008 that out of an IBO
[Independent Business Owners] population of 33,000, 'only about 90 made sufficient incomes to cover the costs
of actively building their business.' That's a 99.7 percent loss rate for investors."[25]
• Newsweek: based on Mona Vie's own 2007 income disclosure statement "fewer than 1 percent qualified for
commissions and of those, only 10 percent made more than $100 a week."[26]
• Business Students Focus on Ethics: "In the USA, the average annual income from MLM for 90% MLM members
is no more than US $5,000, which is far from being a sufficient means of making a living (San Lian Life Weekly
Multi-level marketing
• USA Today has had several articles:
• "While earning potential varies by company and sales ability, DSA says the median annual income for those in
direct sales is $2,400."[28]
• In an October 15, 2010 article, it was stated that documents of a MLM called Fortune reveal that 30 percent of
its representatives make no money and that 54 percent of the remaining 70 percent only make $93 a month.
The article also states Fortune is under investigation by the Attorneys General of Texas, Kentucky, North
Dakota, and North Carolina with Missouri, South Carolina, Illinois, and Florida following up complaints
against the company.[29]
• A February 10, 2011 article stated "It can be very difficult, if not impossible, for most individuals to make a lot
of money through the direct sale of products to consumers. And big money is what recruiters often allude to in
their pitches." [30]
• "Roland Whitsell, a former business professor who spent 40 years researching and teaching the pitfalls of
multilevel marketing": "You'd be hard-pressed to find anyone making over $1.50 an hour, (t)he primary
product is opportunity. The strongest, most powerful motivational force today is false hope."[30]
Legality and legitimacy
MLM businesses operate in the United States in all 50 states, and in more than 100 other countries. New businesses
may use terms like "affiliate marketing" or "home-based business franchising". However, many pyramid schemes
try to present themselves as legitimate MLM businesses.[11]
The United States Federal Trade Commission states "Steer clear of multilevel marketing plans that pay commissions
for recruiting new distributors. They're actually illegal pyramid schemes. Why is pyramiding dangerous? Because
plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be
recruited. And when a plan collapses, most people - except perhaps those at the very top of the pyramid - end up
In a 2004 Staff Advisory letter to the Direct Selling Association, the FTC states:
Much has been made of the personal, or internal, consumption issue in recent years. In fact, the amount
of internal consumption in any multi-level compensation business does not determine whether or not the
FTC will consider the plan a pyramid scheme. The critical question for the FTC is whether the revenues
that primarily support the commissions paid to all participants are generated from purchases of goods
and services that are not simply incidental to the purchase of the right to participate in a money-making
The FTC warns "Not all multilevel marketing plans are legitimate. Some are pyramid schemes. It's best not to get
involved in plans where the money you make is based primarily on the number of distributors you recruit and your
sales to them, rather than on your sales to people outside the plan who intend to use the products."[33] and states that
research is your best tool, giving eight steps to follow:[33]
1) Find — and study — the company’s track record
2) Learn about the product
3) Ask questions
4) Understand any restrictions
5) Talk to other distributors (beware of shills)
6) Consider using a friend or adviser as a neutral sounding board or for a gut check
7) Take your time
8) Think about whether this plan suits your talents and goals
However, there are people who hold that all MLMs are essentially pyramid schemes even if they are legal.[10]
[35] [36]
Multi-level marketing
The FTC issued a decision, In re Amway Corp., in 1979 in which it indicated that multi-level marketing was not
illegal per se in the United States. However, Amway was found guilty of price fixing (by effectively requiring
"independent" distributors to sell at the same fixed price) and making exaggerated income claims.[37] [38]
The FTC advises that multi-level marketing organizations with greater incentives for recruitment than product sales
are to be viewed skeptically. The FTC also warns that the practice of getting commissions from recruiting new
members is outlawed in most states as "pyramiding".[39] In April 2006, it proposed a Business Opportunity Rule
intended to require all sellers of business opportunities—including MLMs—to provide enough information to enable
prospective buyers to make an informed decision about their probability of earning money. In March 2008, the FTC
removed Network Marketing (MLM) companies from the proposed Business Opportunity Rule:
The revised proposal, however, would not reach multi-level marketing companies or certain companies
that may have been swept inadvertently into scope of the April 2006 proposal.[40]
Walter J. Carl stated in a 2004 Western Journal of Communication article that "MLM organizations have been
described by some as cults (Butterfield, 1985), pyramid schemes (Fitzpatrick & Reynolds, 1997),[41] or organizations
rife with misleading, deceptive, and unethical behavior (Carter, 1999), such as the questionable use of evangelical
discourse to promote the business (Hopfl & Maddrell, 1996), and the exploitation of personal relationships for
financial gain (Fitzpatrick & Reynolds, 1997)".[41] [42] In China, volunteers working to rescue people from the
schemes have been physically attacked.[43]
MLM's are also criticized for being unable to fulfill their promises for the majority of participants due to basic
conflicts with Western cultural norms.[44] There are even claims that the success rate for breaking even or even
making money are far worse than other types of businesses:[45] [46] [47] "The vast majority of MLM’s are recruiting
MLM’s, in which participants must recruit aggressively to profit. Based on available data from the companies
themselves, the loss rate for recruiting MLM’s is approximately 99.9%; i.e., 99.9% of participants lose money after
subtracting all expenses, including purchases from the company."[45] In part, this is because encouraging recruits to
further "recruit people to compete with [them]"[10] leads to "market saturation."[12]
Another criticism is that MLM has effectively outlived its usefulness as a legitimate business practice. The argument
is that, in the time when America was a series of relatively small, isolated towns and rural areas not easily accessible
to small companies, MLM was a useful way to let people know of and buy products or services. But the advent of
internet commerce, with its ability to advertise and sell directly to consumers, has rendered that model obsolete.
Thus, today, nearly all modern MLMs ostensibly sell vastly overpriced goods and services (if there even is a real
product or service involved at all) as a thin cloak of legitimacy, while their members are driven to recruit even more
people into the MLM, effectively turning these programs into pyramid schemes.[35]
It is because of this encouraging recruits to further recruit their competitors, some people have even gone so far as to
say at best modern MLMs are nothing more than legalized pyramid schemes[10] [34] [35] [36] with one stating
"Multi-level marketing companies have become an accepted and legally sanctioned form of pyramid scheme in the
United States"[34] while another states "Multi-Level Marketing, a form of Pyramid Scheme, is not necessarily
In October 2010 it was reported that multilevel marketing companies were being investigated by a number of state
attorneys general amid allegations that salespeople were primarily paid for recruiting and that more recent recruits
cannot earn anything near what early entrants do.[48]
Multi-level marketing
Minimum "sales" requirement
Some companies, many of them members of the Direct Selling Association, require their distributors to make
minimum purchases ("pay to play") in order to be eligible for commissions and advancement in the business.[49] For
example, Nefful has mandated a minimum "personal sales volume" each month of $20.00 in order to receive
commission.[50] Such "incentives" are a "red flag" according to the Consumer Awareness Institute.[49] also warns that such requirements which compel sellers to be "committed to a minimum sales
volume per month" are a hallmark of potential scams.[51]
Frequently such "sales" are not real sales, but rather the "seller" purchasing the minimum amount for themselves in
order to fulfill the requirement for compensation. In fact, the Direct Selling Association's Code of Ethics states that
qualifying sales may be "based on sales to individual direct sellers for their own actual use or consumption."[52] The
2004 Staff Advisory letter to the Direct Selling Association from Federal Trade Commission notes that such
minimum sales requirement may be used to "disguise these payments to appear as if they are based on the sale of
goods or services"[32] —thus a direct sale company avoids being found as an illegal pyramid scheme on the
technicality that pyramid schemes have to make no sales, as in the In re Amway Corp. ruling.[38]
[1] Xardel, Dominique (1993). The Direct Selling Revolution. Understanding the Growth of the Amway Corporation. Blackwell Publishing.
pp. 1–4. ISBN 978-0631192299.
[2] Vander Nat, Peter J.; Keep, William W. (2002). "Marketing Fraud: An Approach for Differentiating Multilevel Marketing from Pyramid
Schemes". Journal of Public Policy & Marketing 21 (1): 139–15. doi:10.1509/jppm.
[3] Mendelsohn, Martin (2004). The guide to franchising. Cengage Learning Business Press. p. 36. ISBN 1844801624.
[4] Kitching, Trevor (2001). Purchasing scams and how to avoid them. Gower Publishing Company. p. 4. ISBN 0566082810.
[5] Edwards, Paul (1997). Franchising & licensing: two powerful ways to grow your business in any economy. Tarcher. pp. 356.
ISBN 0874778980.
[6] Clegg, Brian (2000). The invisible customer: strategies for successive customer service down the wire. Kogan Page. pp. 112.
ISBN 074943144X.
[7] Higgs, Philip; Smith, Jane (2007). Rethinking Our World. Juta Academic. pp. 30. ISBN 0702172553.
[8] Kitching, Trevor (2001). Purchasing scams and how to avoid them. Gower Publishing Company. pp. 4. ISBN 0566082810.
[9] Mendelsohn, Martin (2004). The guide to franchising. Cengage Learning Business Press. pp. 36. ISBN 1844801624.
[10] Carroll, Robert Todd (2003). The Skeptic's Dictionary: A Collection of Strange Beliefs, Amusing Deceptions, and Dangerous Delusions
(http:/ / www. skepdic. com/ mlm. html). John Wiley & Sons. pp. 235–36. ISBN 0471272426. . Retrieved 2009-06-29.
[11] "Pyramid Schemes" (http:/ / www. ftc. gov/ speeches/ other/ dvimf16. shtm). FTC. May 13, 1998. . Retrieved 2009-06-24.
[12] "What's Wrong With Multi-Level Marketing?" (http:/ / www. vandruff. com/ mlm. html). . Retrieved 2009-06-29.
[13] (Edwards, Paul; Sarah Edwards, Peter Economy (2010) Home-Based Business For Dummies, 3rd Edition pg 38-39 Wiley ISBN
[14] Charles W. King; James W. Robinson (2000). The New Professionals. Prima Publishing. ISBN 0-7615-1966-1.
[15] "Person to person" sales plans... "dream" opportunity or business nightmare? (http:/ / books. google. com/ books?id=6lAEAAAAMBAJ&
pg=PA51& dq=Direct+ selling& hl=en& ei=6ml_TLzcBIP_8AbH6Z2iAg& sa=X& oi=book_result& ct=result& resnum=2&
ved=0CDQQ6AEwAQ#v=onepage& q=Direct selling& f=false) Amway Ad LIFE Feb 27, 1970
[16] Brown Caryne (1992) "Door-to-door Selling Grows Up" Black Enterprise Vol. 23, No. 5 (Dec 1992); Page 76
[17] Michael L. Sheffield (Feb/Mar 1999), "Comp Plan Conversion: Direct Sales to MLM Compensation Plans" (http:/ / www. sheffieldnet. com/
srn_artice4. html), Direct Sales Journal, (citing Neil Offen, president of the Direct Selling Association)
[18] Zoe Brennan (January 18, 2007). "How Tupperware has conquered the world" (http:/ / www. dailymail. co. uk/ femail/ article-429672/
How-Tupperware-conquered-world. html). The Daily Mail. . Retrieved May 19, 2009.
[19] Edwards, Paul; Sarah Edwards, Peter Economy (2009) Home-Based Business for Dummies Wiley
[20] US Direct Selling in 2009 (http:/ / www. dsa. org/ research/ industry-statistics/ 09gofactsheet. pdf). Direct Selling Association. 2010. .
[21] "Direct Selling Organization Membership" (http:/ / www. dsa. org/ forms/ CompanyFormPublicMembers/ search?action=find). Direct
Selling Association. . Retrieved April 29, 2011.
[22] Zig Ziglar; John P Hayes, PhD (2001). Network Marketing for Dummies. Hungry Minds. ISBN 0-7645-5292-9.
[23] Richard Poe (1999). Prima Publishing. ISBN 0-7615-1752-9.
[24] Brown, David (November 27, 2007). "Marketing group merely ‘selling a dream’" (http:/ / business. timesonline. co. uk/ tol/ business/
industry_sectors/ media/ article2951266. ece). The Times. . Retrieved July 13, 2009.
[25] Berkowitz, Bill (Jan 28, 2009). "Republican Benefactor Launches Comeback" (http:/ / ipsnews. net/ wap/ news. asp?idnews=45588). Inter
press service. . Retrieved July 11, 2009. (in reference to BERR vs Amway (Case No:2651, 2652 and 2653 of 2007) in point of
Multi-level marketing
[26] Tony Dokoupil (August 2, 2008). "A Drink’s Purple Reign" (http:/ / www. newsweek. com/ id/ 150499/ page/ 1). Newsweek. . Retrieved
[27] Ryan (Editor), Leo; Wojciech, Gasparski (Editor); Georges, Enderle (Editor) (2000). Business Students Focus on Ethics (Praxiology): The
international Annual of Practical Philosophy and Methodology Volume 8. New Jersey: Transaction Publishers. pp. 75. ISBN 0765800373.
[28] Peterecca, Laura (September 14, 2009). "What kind of business do you want to start?" (http:/ / www. usatoday. com/ printedition/ money/
20090914/ smallbizweek114_st. art. htm). USAToday (Gannett Company): pp. 4B. . Retrieved Sept 14, 2009.
[29] O'Donnell, Jayne (October 15, 2010). "Fortune Hi-Tech: American dream or pyramid scheme?" (http:/ / www. usatoday. com/ money/
default. htm). USAToday (Gannett Company): pp. 6B. . Retrieved October 15, 2010.
[30] O'Donnell, Jayne (February 10, 2011). "Multilevel marketing or 'pyramid?' Sales people find it hard to earn much" (http:/ / www. usatoday.
com/ money/ industries/ retail/ 2011-02-07-multilevelmarketing03_CV_N. htm). USAToday (Gannett Company). . Retrieved April 5, 2011.
[31] "FTC Consumer Alert; Lotions and Potions: The Bottom Line About Multilevel Marketing Plans" (http:/ / www. ftc. gov/ bcp/ edu/ pubs/
consumer/ alerts/ alt057. shtm). FTC. January 2000. . Retrieved 2001-03-26.
[32] Kohm, James A. (January 14, 2004) (reprint). RE: Staff Advisory Opinion - Pyramid Scheme Analysis (http:/ / www. mlmwatchdog. com/
files/ FTC_Letter. pdf). Federal Trade Commission. .
[33] Facts for Consumers; The Bottom Line About Multilevel Marketing Plans and Pyramid Schemes (http:/ / www. ftc. gov/ bcp/ edu/ pubs/
consumer/ invest/ inv08. shtm) Federal Trade Commission
[34] Coenen, Tracy (2009). Expert Fraud Investigation: A Step-by-Step Guide. Wiley. p. 168. ISBN 0470387963.
[35] Ogunjobi, Timi (2008). SCAMS - and how to protect yourself from them. Tee Publishing. pp. 13–19.
[36] Salinger (Editor), Lawrence M. (2005). Encyclopedia of White-Collar & Corporate Crime. 2. Sage Publishing. p. 880. ISBN 0761930043.
[37] Richard Eisenberg (June 1, 1987). "The Mess Called Multi-Level Marketing With celebrities setting the bait, hundreds of pyramid-style
sales companies are raking in millions, often taking in the gullible" (http:/ / money. cnn. com/ magazines/ moneymag/ moneymag_archive/
1987/ 06/ 01/ 83883/ index. htm). CNN Money. .
[38] In re Amway Corp., 93 F.T.C. (1979). Text (http:/ / www. ftc. gov/ os/ decisions/ docs/ vol93/
[39] "Multilevel Marketing Plans" (http:/ / www. ftc. gov/ bcp/ edu/ pubs/ consumer/ invest/ inv12. shtm). FTC Consumer Alert. November
1996. . Retrieved 2008-05-07.
[40] "FTC Press Release" (http:/ / www. ftc. gov/ opa/ 2008/ 03/ busrule. shtm). .
[41] "FalseProfitsHomePage" (http:/ / www. falseprofits. com/ ). . Retrieved 2010-03-05.
[42] Carl, Walter J. (2004) "The Interactional Business of Doing Business: Managing Legitimacy and Co-constructing Entrepreneurial Identities
in E-Commerce Multilevel Marketing Discourse" Western Journal of Communication, Vol. 68.
[43] Hu Yongqi. "Going against the slippery slope of a pyramid scheme" (http:/ / www. chinadaily. com. cn/ usa/ 2010-07/ 29/
content_11068997. htm). China Daily. .
[44] Bloch, Brian (1996) "Multilevel marketing: what's the catch?" Journal of Consumer Marketing 13:4 pp. 18-26.
[45] Taylor, Jon M. (2002). "Comparing Recruiting MLM’s with No-product Pyramid Schemes, and with Gambling" (http:/ / www.
mlm-thetruth. com/ blog/ consumer-guides/ shocking-statistics/ ). Consumers Awareness Institute. . Retrieved 2011-04-28.
[46] FitzPatrick, Robert L. (August 4, 2002). "The 10 Big Lies of Multi-Level Marketing" (http:/ / www. mlmwatch. org/ 01General/ 10lies.
html). Consumers Awareness Institute. . Retrieved 2009-06-25.
[47] Cruz, Joan Paola; Camilo Olaya (2008) "A System Dynamics Model for Studying the Structure of Network Marketing Organizations" (http:/
/ www. systemdynamics. org/ conferences/ 2008/ proceed/ papers/ OLAYA411. pdf)(peer reviewed paper that refers uses Taylor as
[48] "Multilevel marketing or 'pyramid?' Sales people find it hard to earn much" (http:/ / www. usatoday. com/ money/ industries/ retail/
2011-02-07-multilevelmarketing03_CV_N. htm). USAToday. 10 February 2011. . Retrieved 3 March 2011.
[49] Joseph Mariano, et al. Rebuttal of DSA Comments (522418-12055 through 12096) Regarding FTC Business Opportunity Rule (http:/ / www.
ftc. gov/ os/ comments/ businessopprule/ rebuttal/ 522418-13115. pdf). Consumer Awareness Institute Consumer.
[50] 2008 MALAYSIA JUNE ANNOUNCEMENT (http:/ / webcache. googleusercontent. com/ search?q=cache:rUUQ7vLucb0J:www. nefful.
com. my/ enews/ english/ 01062008/ june. pdf+ nefful+ 20pv& hl=en& gl=us). Page 3.
[51] Network Marketing Scams (http:/ / www. watchforscams. com/ network_marketing_scams. html)
[52] Robinson, A. DSA Bus Opp Draft--Final (http:/ / www. ftc. gov/ os/ comments/ businessopprule/ 522418-12058. pdf). Direct Selling
Multi-level marketing
External links
• Federal Trade Commission article (
• Abrams, Rhonda (3 October 2002). "Don't get taken by multi-level marketing" (
money/smallbusiness/columnist/abrams/2002-10-03-mlm_x.htm). USA Today.
Nano-campaigning refers to an approach within Marketing communications, Public relations and Lobbying which
uses personalised and product-specific or issue-specific tactics as the starting point for more extensive strategic
campaigns. It is based on the principles of social psychology and is enabled by the application of social media
First use of the term
The term was first coined by US marketer and blogger, Anne Holland, on her MarketingSherpa blog, in an article[1]
of 6 October 2008[2] . For Holland, the nano-campaign was the practical effect of the nano-niche marketing concept.
Wider definition and application of the term
On 19 February 2009, UK campaigns consultant and writer, Dan Fox, in an article on PubAffairs, the Public Affairs
Networking blog[3], expanded the definition to cover the broader range of communications disciplines and
services[4] .
He defined nano-campaigning as the tactical promotion of ideas and messages, tailored to individuals or select
groups, with the strategic aim of encouraging a campaign to grow and build momentum beyond a small, focussed
audience, enabled by the multiplying effects of communication technologies and social media.
In March 2009, the term was used on another marketing blog, dm horizons[5][6] to describe the rejection of
television by the team campaigning to promote the Indian-manufactured budget car, the Nano, in favour of, inter
alia, chatrooms, news tickers, pop-ups, Facebook, Orkut, blogs, and word-of-mouth[7] . dm horizons described this
as "a nano-campaign for the Nano".
[1] http:/ / www. marketingsherpa. com/ article. php?ident=30857
[2] SherpaBlog: Nano-Niche Marketing: How to Beat the Recession (And Your Competition) More Easily http:/ / www. marketingsherpa. com/
article. php?ident=30857#
[3] http:/ / www. publicaffairsnetworking. com/ blog_detail. php?id=58
[4] Think big, act small. It’s time to start nano-campaigning http:/ / www. publicaffairsnetworking. com/ blog_detail. php?id=58
[5] http:/ / dmhorizons. blogspot. com/
[6] Nano's Nano Marketing http:/ / dmhorizons. blogspot. com/ 2009/ 03/ nanos-nano-marketing. html
[7] Nano to Ride on Innovative Marketing http:/ / www. businessweek. com/ globalbiz/ content/ mar2009/ gb20090323_636187.
Next best action marketing
Next best action marketing
Next Best Action marketing (also known as Best Next Action or Next Best Activity), as a special case of Next Best
Action decision-making, is a customer-centric marketing paradigm that considers the different actions that can be
taken for a specific customer and decides on the ‘best’ one[1] . The Next Best Action (an offer, proposition, service,
etc.) is determined by the customer’s interests and needs on the one hand, and the marketing organization’s business
objectives, policies, and regulations on the other. This is in sharp contrast to traditional marketing approaches that
first create a proposition for a product or service and then attempt to find interested and eligible prospects for that
proposition. This practice, Direct Marketing, typically automated in the form of a campaign management tool, is
Further Positioning
The Next Best Action paradigm is very much suited to inbound customer communication because a customer
making contact will expect a considered response from the company to his or her request, complaint, inquiry, etc.
Leveraging Next Best Action will enable the company to respond to the customer’s needs during the interaction,
while ensuring that the action taken also benefits the company. Without a next best action capability in place, a call
center or branch agent would be enabled to follow a script in their communication with the customer, which, while
perhaps furthering the company’s marketing goals, would most likely be impervious to customer context.
Nothwithstanding its relevance to inbound customer communication Next Best Action marketing is equally
applicable to outbound communication. In this case the Next Best Action strategy is applied in batch, overnight for
instance, after which customers that have been assigned the same action (i.e. make proposition X) are aggregated.
Enabling Technology
Only recently has the technology become available to allow a company to reliably achieve Next Best Action
capabilities in high volumes as well as in real-time[2] . Typically, this requires a multi-channel, centralized
decisioning authority that dispenses all decisions with regard to the customer (see Enterprise Decision Management).
This “decisioning hub” leverages “decision logic” that combines the company’s business rules with predictive and
adaptive (aka self-learning) decisioning models to help determine how to approach a customer prior to as well as
during an interaction. The decisioning authority takes into account each customer’s expectations, propensities and
likely behavior through the use of predictive modeling. Interfaces that can leverage this intelligence must also be in
place to externalize the logic and guide an agent (or the system itself) in how the customer would prefer to be treated
at any given moment, continuously recalibrating the approach based on customer responses. The approach taken may
be to make an offer, resolve a complaint, or to make some other kind of recommendation (or a combination of all of
The Next Best Action paradigm is not new nor is it only applicable in marketing. A similar concept was suggested
by John Boyd of the United States Airforce (OODA Loop). In a military context it describes thinking on the fly with
distributed, local decision-making versus planned campaigns and objectives. In marketing it has only recently been
possible to make decisions fast enough on an enterprise scale to build a ‘mini-business case’ in real-time, considering
many courses of action before deciding on the best one.
From a business perspective, the rise of the Next Best Action paradigm has in part been triggered by an increasing
emphasis on inbound marketing. Organizations have found that volume in the inbound channels (web, call center,
Next best action marketing
ATM, branch, etc) is increasing in recent years, while outbound channels (direct mail, cold calling, etc) are
increasingly challenged. The reason for this is threefold: 1) customers have become less tolerant of receiving
outbound marketing solicitations; 2) new regulations limit spam or spamlike activities, telemarketing calls and direct
mail; and 3) customers are increasingly Internet savvy.
Benefits and Drawbacks
Although the new paradigm is elegant, both in its business and technical implications, it faces two challenges. The
first complication is that most companies are organized in a product-oriented way. This means that product managers
have specific volume or revenue targets. Traditional campaign management is very much aligned with this. The Next
Best Action paradigm, although capable of reflecting the same priorities, is normally used for bottom line
optimization. Organizationally this means that different lines of business will need to collaborate to define Next Best
Action strategies, and goals may need to be reset to better reflect the customer-centric nature of the new processes.
The second complication is its unpredictability. Although overall it will optimize the bottom line and have other
attractive features (like built-in customer centricity), the ‘on the fly’ decision-making makes it harder to know in
advance what the results will be. There are implications for supply (chain) management, staff incentive schemes,
budgeting, and service level agreements. Next Best Action strategies can be made predictable again by simulating
them in advance.
Next-Best-Action is a trademark of Chordiant Software[3] from which one could infer it is merely a marketing slogan
specific to that company.
[1] Hayward, Neil (2009,April 29). "Five rules for the next best offer in marketing" (http:/ / www. mycustomer. com/ cgi-bin/ item.
cgi?id=134320). . Retrieved 2009,May 1. "Stop thinking of next best offer and instead think of next best action ... Is there a complaint to
handle or an issue to fix?"
[2] Walker, Rob (2007,June 26). "Next-Best-Action Marketing: Creating the Segment of One" (http:/ / www. information-management. com/
specialreports/ 20070626/ 1086817-1. html). . Retrieved 2009,May 1. "Next Best Action marketing ... enables companies to make real-time
decisions about their customers based on individual conversations, and provides the framework for the customer conversation to unfold
[3] "Chordiant Introduces Next-Best-Action for B2B Customers and Consumer Households" (http:/ / chrd. client. shareholder. com/ releasedetail.
cfm?ReleaseID=367277). 2009,February 24. . Retrieved 2009,May 1.
Permission marketing
Permission marketing
Permission marketing is a term popularized by Seth Godin[1] (but found earlier [2] ) used in marketing in general
and e-marketing specifically. The undesirable opposite of permission marketing is interruption marketing. Marketers
obtain permission before advancing to the next step in the purchasing process. For example, they ask permission to
send email newsletters to prospective customers.[3] It is mostly used by online marketers, notably email marketers
and search marketers, as well as certain direct marketers who send a catalog in response to a request.
This form of marketing requires that the prospective customer has either given explicit permission for the marketer
to send their promotional message (e.g. an email or catalog request) or implicit permission (e.g. querying a search
engine). This can be either via an online email opt-in form or by using search engines, which implies a request for
information which can include that of a commercial nature. To illustrate, consider someone who searches for "buy
shoes." Online shoe stores have the searchers' permission to make an offer that solves their shoe problem.
Marketers feel that this is a more efficient use of their resources because the offers are only sent to people that are
actually interested in the product. This is one technique used by marketers that have a personal marketing
orientation. They feel that marketing should be done on a one-to-one basis rather than using broad aggregated
concepts like market segment or target market.
In the United Kingdom, an opt-in is required for email marketing, under The Privacy and Electronic
Communications (EC Directive) Regulations 2003. This came into force on the 11 December 2003.
Another form of permission marketing is in-stream advertising. This type of marketing involves the showing of an
advertisement prior to and/or during an on-line video stream. This type of advertising allows originators of the video
content to show their video in the highest quality versus other videos posted without consent. Among the different
types of in-stream advertising are, standard fifteen to sixty second video advertisements, branded player skins,
branded slates, survey ads, and even sponsored blocks of time. This type of marketing allows advertisers to reach a
more specific audience that may be more receptive to their product or service. See Anderson School of Management
project Promotions Channel: Permission Marketing [4]
Permission marketing and the internet
Permission marketing offers the promise of improving targeting by helping consumers interface with marketers most
likely to provide relevant promotional messages. Many permission-marketing firms (e.g. yes now part of
the business incubator, CMGI) claim customer response rates in the region of 5-20% and since most use e-mail, they
are not affected by the measurement problems of banner advertising. Since the ads arrive in the mailbox of the
individual, it is likely that more attention would be paid to them in comparison to banners. Even though permission
marketing can be implemented in any direct medium, it has emerged as a serious idea only with the advent of the
Internet. The two reasons for this are: (1) on the Internet, the cost of marketer-to-consumer communication is low;
(2) the Internet has enabled rapid feedback mechanisms due to instantaneous two-way communication. Another
motivation for permission marketing on the Web has been the failure of the direct mail approach of sending
unsolicited promotional messages. The prime example of this is unsolicited commercial e-mail or “Spam”. Senders of
spam realize three things- the cost of obtaining a new e-mail address is minimal, the marginal cost of contacting an
additional customer is nearly zero and it is easy to deceive the consumer. Spammers can easily obtain new e-mail
addresses from websites and Usenet groups using software programs that “troll” the Internet. Individuals provide
their addresses at these places for other purposes and hence, this violates their privacy rights. In addition, marketers
incur similar costs if they send out 1 million or 10 million e-mails. Moreover, there are now programs that enable the
large-scale use of deceptive practices (e.g. forged e-mail headers). Due to these problems, Spam cannot be a
legitimate form of marketing communication. Using it would lead to an excessive message volume for consumers,
weakening of brand reputation and a slowing of the entire network. Hence, permission marketing is seen as a
Permission marketing
feasible alternative for Internet marketing communication. Permission marketing is now a large-scale activity on the
Internet. A leading Internet business periodical recently noted that, “permission marketing was once a niche business.
Now, everybody is doing it”. In addition, permission marketing has been incorporated in leading texts on marketing
management, e.g., Kotler’s millennium edition.
[1] Godin, Seth (1999). Permission Marketing: turning strangers into friends, and friends into customers. New York: Simon & Schuster.
ISBN 0-684-85636-0.
[2] "permission marketing." OED Online. Third Edition, December 2005. Oxford University Press. Accessed 29 March 2011 (http:/ /
oed. com/ view/ Entry/ 141214#eid30892945)
[3] Scott, David Meerman (2007). The new rules of marketing and PR how to use news releases, blogs, podcasts, viral marketing and online
media to reach your buyers directly. Hoboken, N.J.: J. Wiley & Sons, Inc.. p. 162. ISBN 978-0-470-11345-5. "...if you're asking for someone's
e-mail address ... you must provide something equally valuable in return."
[4] http:/ / www. mgmt487. wordpress. com
• "Seth Godin: Agent of Change" ( Retrieved May 5, 2009. – official site
• A Comprehensive Analysis of Permission Marketing (
Proximity marketing
Proximity marketing is the localized wireless distribution of advertising content associated with a particular place.
Transmissions can be received by individuals in that location who wish to receive them and have the necessary
equipment to do so.
Distribution may be via a traditional localized broadcast, or more commonly is specifically targeted to devices
known to be in a particular area.
The location of a device may be determined by:
• A cellular phone being in a particular cell
• A Bluetooth or WiFi device being within range of a transmitter.
• An Internet enabled device with GPS enabling it to request localized content from Internet servers.
Communications may be further targeted to specific groups within a given location, for example content in tourist
hot spots may only be distributed to devices registered outside the local area.
Communications may be both time and place specific, e.g. content at a conference venue may depend on the event in
Uses of proximity marketing include distribution of media at concerts, information (weblinks on local facilities),
gaming and social applications, and advertising.
Bluetooth-based systems
Bluetooth, a short-range wireless system supported by many mobile devices, is one transmission medium used for
proximity marketing. The process of Bluetooth based proximity marketing involves setting up Bluetooth
"broadcasting" equipment at a particular location and then sending information which can be text, images, audio or
video to Bluetooth enabled devices within range of the broadcast server. Other standard data exchange formats such
as Vcard can also be used.
Proximity marketing
It used to be the case that due to security fears, or a desire to save battery life, many users keep their Bluetooth
devices in OFF mode, or ON but not set to be 'discoverable'. Because of this, often regions where Bluetooth
proximity marketing is in operation it is accompanied by advising via traditional media - such as posters, television
screens or field marketing teams - suggesting people make their Bluetooth handsets 'discoverable' in order to receive
free content - this is often referred to as a "Call-to-Action." A 'discoverable' Bluetooth device within range of the
server is automatically sent a message asking if the user would like to receive the free content.
Current mobile phones usually have bluetooth switched ON by default, and a majority of users now leave bluetooth
switched on for easy connection with car kits and headsets.
Some implementations of Bluetooth proximity marketing require users to run Java applications on their phones to
enable them to receive content. This has the advantage that only those who choose to will receive content. Others
require no handset-side software.
The diversity of mobile phones is huge. Screen sizes and supported file formats varies greatly. To obtain the optimal
user experience with Bluetooth Marketing, the Bluetooth system must be able to automatically recognize phone
models and deliver the proper content automatically.
GSM-based systems
GSM 03.41 which defines the Short Message Service - Cell Broadcast (SMS-CB) allows messages (advertising,
public information, etc.) to be broadcast to all mobile users in a specified geographical area. Some phones/devices
have an option to turn off the receipt of such messages.
There are provisions for "welcome" messages to be sent when entering new countries introducing networks
There are also capabilities for messages to be sent by emergency services.
GSM localization accuracy varies depending on location.
In the Philippines, GSM-based proximity broadcast systems are used by select Government Agencies for information
dissemination on Government-run community-based programs to take advantage of its reach and popularity. It is
also used for commercial service known as Proxima SMS. Philippines has the world's highest traffic of SMS (locally
referred to as texting).
Bluewater, a super-regional shopping centre in the UK, has a GSM based system supplied by NTL to help its GSM
coverage for calls, it also allows each customer with a mobile phone to be tracked though the centre which shops
they go into and for how long. The system enables special offer texts to be sent to the phone.
Reality marketing
Reality marketing
Reality Marketing is a form of Permission marketing that blends many types of interactive advertising techniques
into a Reality television show format.
During the 1990s, acquiring and keeping the attention of consumers was becoming more difficult in the face of new
media outlets, people's increasing savviness of marketing tactics, and the many new demands on how people spent
their time.
In order to "pay" people back for their time spent with an advertiser's message, marketers turned towards Branded
content to build a new type of relationship with their audience. By giving a consumer something for their time (an
educational or entertaining film, for example) the advertiser could be assured to keep their attention while a message
was delivered.
This tactic became a new category of marketing virtually overnight with the success in 2001's [BMW films] on the
The Need
While the Branded Content framework provides a great way to develop and maintain a brand image, it typically does
little to give consumers a concrete reason to make a purchase. Since consumers have become increasingly
media-savvy, hard-sell advertising messages do not function well within this type of program. Advertisers believe
that once a branded content program is seen as merely a sales tool, the consumer will stop paying attention.
Reality marketing builds on the branded content and Experiential marketing techniques by producing entertaining
experiences and blending in hard-sell advertising into one program in a manner that doesn't violate the trust between
the consumer and marketer.
Relationship marketing
Relationship marketing
Key concepts
Product • Pricing
Distribution • Service • Retail
Brand management
Account-based marketing
Marketing ethics
Marketing effectiveness
Market research
Market segmentation
Marketing strategy
Marketing management
Market dominance
Promotional content
Advertising • Branding • Underwriting
Direct marketing • Personal Sales
Product placement • Publicity
Sales promotion • Sex in advertising
Loyalty marketing • Premiums • Prizes
Promotional media
Printing • Publication
Broadcasting • Out-of-home
Internet marketing • Point of sale
Promotional merchandise
Digital marketing • In-game
In-store demonstration
Word-of-mouth marketing
Brand Ambassador • Drip Marketing
Relationship Marketing was first defined as a form of marketing developed from direct response marketing
campaigns which emphasizes customer retention and satisfaction, rather than a dominant focus on sales transactions.
As a practice, Relationship Marketing differs from other forms of marketing in that it recognizes the long term value
of customer relationships and extends communication beyond intrusive advertising and sales promotional messages.
With the growth of the internet and mobile platforms, Relationship Marketing has continued to evolve and move
forward as technology opens more collaborative and social communication channels. This includes tools for
managing relationships with customers that goes beyond simple demographic and customer service data.
Relationship Marketing extends to include Inbound Marketing efforts, (a combination of search optimization and
Strategic Content), PR, Social Media and Application Development. Relationship Marketing is a broadly recognized,
widely-implemented strategy for managing and nurturing a company’s interactions with clients and sales prospects.
It also involves using technology to organize, synchronize business processes, (principally sales and marketing
activities), and most importantly, automate those marketing and communication activities on concrete marketing
sequences that could run in autopilot, (also known as marketing sequences). The overall goals are to find, attract and
win new clients, nurture and retain those the company already has, entice former clients back into the fold, and
reduce the costs of marketing and client service. [1] Once simply a label for a category of software tools, today, it
generally denotes a company-wide business strategy embracing all client-facing departments and even beyond.
When an implementation is effective, people, processes, and technology work in synergy to increase profitability,
and reduce operational costs.
Relationship marketing
Relationship Marketing refers to a long-term arrangement where both the buyer and seller have an interest in
providing a more satisfying exchange. This approach attempts to transcend the simple purchase-exchange process
with a customer to make more meaningful and richer contact by providing a more holistic, personalized purchase,
and uses the experience to create stronger ties.
According to Liam Alvey,[1] relationship marketing can be applied when there are competitive product alternatives
for customers to choose from; and when there is an ongoing and periodic desire for the product or service.
Fornell and Wernerfelt[2] used the term "defensive marketing" to describe attempts to reduce customer turnover and
increase customer loyalty. This customer-retention approach was contrasted with "offensive marketing" which
involved obtaining new customers and increasing customers' purchase frequency. Defensive marketing focused on
reducing or managing the dissatisfaction of your customers, while offensive marketing focused on "liberating"
dissatisfied customers from your competition and generating new customers. There are two components to defensive
marketing: increasing customer satisfaction and increasing switching barriers.
Modern consumer marketing originated in the 1960s and 1970s as companies found it more profitable to sell
relatively low-value products to masses of customers. Over the decades, attempts have been made to broaden the
scope of marketing, relationship marketing being one of these attempts. Arguably, customer value has been greatly
enriched by these contributions.
The practice of relationship marketing has been facilitated by several generations of customer relationship
management software that allow tracking and analyzing of each customer's preferences, activities, tastes, likes,
dislikes, and complaints. For example, an automobile manufacturer maintaining a database of when and how repeat
customers buy their products, the options they choose, the way they finance the purchase etc., is in a powerful
position to develop one-to-one marketing offers and product benefits.
In web applications, the consumer shopping profile can be built as the person shops on the website. This information
is then used to compute what can be his or her likely preferences in other categories. These predicted offerings can
then be shown to the customer through cross-sell, email recommendation and other channels.
Relationship marketing has also migrated back into direct mail, allowing marketers to take advantage of the
technological capabilities of digital, toner-based printing presses to produce unique, personalized pieces for each
recipient. Marketers can personalize documents by any information contained in their databases, including name,
address, demographics, purchase history, and dozens (or even hundreds) of other variables. The result is a printed
piece that (ideally) reflects the individual needs and preferences of each recipient, increasing the relevance of the
piece and increasing the response rate.
Relationship marketing has also been strongly influenced by reengineering. According to (process) reengineering
theory, organizations should be structured according to complete tasks and processes rather than functions. That is,
cross-functional teams should be responsible for a whole process, from beginning to end, rather than having the work
go from one functional department to another. Traditional marketing is said to use the functional (or 'silo')
department approach. The legacy of this can still be seen in the traditional four P's of the marketing mix. Pricing,
product management, promotion, and placement. According to Gordon (1999), the marketing mix approach is too
limited to provide a usable framework for assessing and developing customer relationships in many industries and
should be replaced by the relationship marketing alternative model where the focus is on customers, relationships
and interaction over time, rather than markets and products.
In contrast, relationship marketing is cross-functional marketing. It is organized around processes that involve all
aspects of the organization. In fact, some commentators prefer to call relationship marketing "relationship
management" in recognition of the fact that it involves much more than that which is normally included in
Relationship marketing
Martin Christopher, Adrian Payne, and David Ballantyne[3] at the Cranfield School of Management claim that
relationship marketing has the potential to forge a new synthesis between quality management, customer service
management, and marketing. They see marketing and customer service as inseparable.
Relationship marketing involves the application of the marketing philosophy to all parts of the organization. Every
employee is said to be a "part-time marketer". The way Regis McKenna (1991) puts it:
"Marketing is not a function, it is a way of doing business . . . marketing has to be all pervasive, part of
everyone's job description, from the receptionist to the board of directors.
Relationship marketing relies upon the communication and acquisition of consumer requirements solely from
existing customers in a mutually beneficial exchange usually involving permission for contact by the customer
through an "opt-in" system.[4] With particular relevance to customer satisfaction the relative price and quality of
goods and services produced or sold through a company alongside customer service generally determine the amount
of sales relative to that of competing companies. Although groups targeted through relationship marketing may be
large, accuracy of communication and overall relevancy to the customer remains higher than that of direct
marketing, but has less potential for generating new leads than direct marketing and is limited to Viral marketing for
the acquisition of further customers.
A key principle of relationship marketing is the retention of customers through varying means and practices to
ensure repeated trade from preexisting customers by satisfying requirements above those of competing companies
through a mutually beneficial relationship[4] [5] This technique is now used as a means of counterbalancing new
customers and opportunities with current and existing customers as a means of maximizing profit and counteracting
the "leaky bucket theory of business" in which new customers gained in older direct marketing oriented businesses
were at the expense of or coincided with the loss of older customers.[6] [7] This process of "churning" is less
economically viable than retaining all or the majority of customers using both direct and relationship management as
lead generation via new customers requires more investment.[8]
Many companies in competing markets will redirect or allocate large amounts of resources or attention towards
customer retention as in markets with increasing competition it may cost 5 times more to attract new customers than
it would to retain current customers, as direct or "offensive" marketing requires much more extensive resources to
cause defection from competitors.[8] However, it is suggested that because of the extensive classic marketing theories
center on means of attracting customers and creating transactions rather than maintaining them, the majority usage of
direct marketing used in the past is now gradually being used more alongside relationship marketing as its
importance becomes more recognizable.[8]
It is claimed by Reichheld and Sasser [9] that a 5% improvement in customer retention can cause an increase in
profitability of between 25 and 85 percent (in terms of net present value) depending on the industry. However
Carrol, P. and Reichheld, F.[10] dispute these calculations, claiming they result from faulty cross-sectional analysis.
Research by John Fleming and Jim Asplund indicates that engaged customers generate 1.7 times more revenue than
normal customers, while having engaged employees and engaged customers returns a revenue gain of 3.4 times the
According to Buchanan and Gilles,[11] the increased profitability associated with customer retention efforts occurs
because of several factors that occur once a relationship has been established with a customer.
Relationship marketing
• The cost of acquisition occurs only at the beginning of a relationship, so the longer the relationship, the lower the
amortized cost.
• Account maintenance costs decline as a percentage of total costs (or as a percentage of revenue).
• Long-term customers tend to be less inclined to switch, and also tend to be less price sensitive. This can result in
stable unit sales volume and increases in dollar-sales volume.
• Long-term customers may initiate free word of mouth promotions and referrals.
• Long-term customers are more likely to purchase ancillary products and high margin supplemental products.
• Customers that stay with you tend to be satisfied with the relationship and are less likely to switch to competitors,
making it difficult for competitors to enter the market or gain market share.
• Regular customers tend to be less expensive to service because they are familiar with the process, require less
"education", and are consistent in their order placement.
• Increased customer retention and loyalty makes the employees' jobs easier and more satisfying. In turn, happy
employees feed back into better customer satisfaction in a virtuous circle.
Relationship marketers speak of the "relationship ladder of customer loyalty". It groups types of customers according
to their level of loyalty. The ladder's first rung consists of "prospects", that is, people that have not purchased yet but
are likely to in the future. This is followed by the successive rungs of "customer", "client", "supporter", "advocate",
and "partner". The relationship marketer's objective is to "help" customers get as high up the ladder as possible. This
usually involves providing more personalized service and providing service quality that exceeds expectations at each
Customer retention efforts involve considerations such as the following:
1. Customer valuation - Gordon (1999) describes how to value customers and categorize them according to their
financial and strategic value so that companies can decide where to invest for deeper relationships and which
relationships need to be served differently or even terminated.
2. Customer retention measurement - Dawkins and Reichheld (1990) calculated a company's "customer retention
rate". This is simply the percentage of customers at the beginning of the year that are still customers by the end of
the year. In accordance with this statistic, an increase in retention rate from 80% to 90% is associated with a
doubling of the average life of a customer relationship from 5 to 10 years. This ratio can be used to make
comparisons between products, between market segments, and over time.
3. Determine reasons for defection - Look for the root causes, not mere symptoms. This involves probing for details
when talking to former customers. Other techniques include the analysis of customers' complaints and
competitive benchmarking (see competitor analysis).
4. Develop and implement a corrective plan - This could involve actions to improve employee practices, using
benchmarking to determine best corrective practices, visible endorsement of top management, adjustments to the
company's reward and recognition systems, and the use of "recovery teams" to eliminate the causes of defections.
A technique to calculate the value to a firm of a sustained customer relationship has been developed. This calculation
is typically called customer lifecycle value.
Retention strategies also build barriers to customer switching. This can be done by product bundling (combining
several products or services into one "package" and offering them at a single price), cross selling (selling related
products to current customers), cross promotions (giving discounts or other promotional incentives to purchasers of
related products), loyalty programs (giving incentives for frequent purchases), increasing switching costs (adding
termination costs, such as mortgage termination fees), and integrating computer systems of multiple organizations
(primarily in industrial marketing).
Many relationship marketers use a team-based approach. The rationale is that the more points of contact between the
organization and customer, the stronger will be the bond, and the more secure the relationship.
Relationship marketing
Relationship marketing and traditional (or transactional) marketing are not mutually exclusive and there is no need
for a conflict between them. A relationship oriented marketer still has choices at the level of practice, according to
the situation variables. Most firms blend the two approaches to match their portfolio of products and services.
Virtually all products have a service component to them and this service component has been getting larger in recent
Internal marketing
Relationship marketing also stresses what it calls internal marketing. This refers to using a marketing orientation
within the organization itself. It is claimed that many of the relationship marketing attributes like collaboration,
loyalty and trust determine what "internal customers" say and do. According to this theory, every employee, team, or
department in the company is simultaneously a supplier and a customer of services and products. An employee
obtains a service at a point in the value chain and then provides a service to another employee further along the value
chain. If internal marketing is effective, every employee will both provide and receive exceptional service from and
to other employees. It also helps employees understand the significance of their roles and how their roles relate to
others'. If implemented well, it can also encourage every employee to see the process in terms of the customer's
perception of value added, and the organization's strategic mission. Further it is claimed that an effective internal
marketing program is a prerequisite for effective external marketing efforts. (George, W. 1990)
The six markets model
Christopher, Payne and Ballantyne (1991) from Cranfield University goes further. They identify six markets which
they claim are central to relationship marketing. They are: internal markets, supplier markets, recruitment markets,
referral markets, influence markets, and customer markets.
Referral marketing is developing and implementing a marketing plan to stimulate referrals. Although it may take
months before you see the effect of referral marketing, this is often the most effective part of an overall marketing
plan and the best use of resources.
Marketing to suppliers is aimed at ensuring a long-term conflict-free relationship in which all parties understand
each others' needs and exceed each others' expectations. Such a strategy can reduce costs and improve quality.
Influence markets involve a wide range of sub-markets including: government regulators, standards bodies,
lobbyists, stockholders, bankers, venture capitalists, financial analysts, stockbrokers, consumer associations,
environmental associations, and labor associations. These activities are typically carried out by the public relations
department, but relationship marketers feel that marketing to all six markets is the responsibility of everyone in the
organization. Each market may require its own explicit strategies and a separate marketing mix for each.
Live-in Marketing
Live-in Marketing is a term used to describe a variant of marketing and advertising in which the target consumer is
allowed to sample or use a brands product in a relaxed atmosphere over a longer period of time. Much like product
placement in film and television LIM was developed as a means to reach select target demographics in a non-evasive
and much less garish manner than traditional advertising.
While LIM represents an entirely untapped avenue of marketing for both big and small brands alike it is not an all
that novel an idea. With the rising popularity of experiential and event marketing[12] in North America and Europe,
as well as the relatively high ROI in terms of advertising dollars spent on experiential marketing compared to
traditional big media advertising, industry analysts see LIM as a natural progression.
Relationship marketing
LIM functions around the premise that marketing or advertising agencies go out on behalf of the brand in question
and find its target demographic. From that point forward avenues such as sponsorship or direct product placement
and sampling are explored. Unlike traditional event marketing, LIM suggests that end-users will sample the product
or service in a comfortable and relaxed atmosphere. The idea behind this technique is that the end-user will have as
positive as possible an interaction with the given brand thereby leading to word-of-mouth[13] communication and
potential future purchase. If the success of traditional event and experiential marketing is shared with LIM then it
could indicate quite a lucrative and fairly low-cost means of product promotion. However, due to the fact that this
means of advertising is still in its infancy more research is required to determine the true success of such campaigns.
Because LIM is a fairly new concept many agencies are only now beginning to incorporate it into their advertising
and marketing portfolios. The first such company to explicitly offer LIM services was Hostival Connect in late 2010.
It is expected that more and more agencies will begin to sell LIM type campaigns.
[1] Berry, Leonard (1983). Relationship Marketing. American Marketing Association, Chicago. p. 146. ISBN 0877571619.
[2] Fornell, C. and Wernerfelt, B. (1987) "Defensive marketing strategy by customer complaint management : a theoretical analysis", Journal of
Marketing Research, November, 1987, pp 337-346
[3] Relationship Marketing. Butterworth-Heinemann, Oxford. 1991. p. 264. ISBN 0750648392.
[4] Gale, B.T.,Chapman., R.W. (1994) Managing Customer Value: Creating Quality and Service That Customers Can See New York: Free Press
[5] Gordon, Ian (1999). Relationship Marketing: New Strategies, Techniques and Technologies to Win the Customers You Want and Keep Them
Forever. John Wiley and Sons Publishers. p. 336. ISBN 0471641731.
[6] Kotler, Philip, Armstrong, Gary, Saunders, John and Wong, Veronica. (1999). "Principles of Marketing" 2nd ed. Prentice Hall Europe.
[7] Kotler, Philip, Armstrong, Gary, Saunders, John and Wong, Veronica. (1999)., p482
[8] Kotler, Philip, Armstrong, Gary, Saunders, John and Wong, Veronica. (1999)., p483
[9] Reichheld, F. and Sasser, W. (1990) "Zero defects: quality comes to services", Harvard Business Review, Sept-Oct, 1990, pp 105-111
[10] Carrol, P. and Reichheld, F. (1992) "The fallacy of customer retention", Journal of Retail Banking, vol 13, no 4, 1992
[11] Buchanan, R. and Gilles, C. (1990) "Value managed relationship: The key to customer retention and profitability", European Management
Journal, vol 8, no 4, 1990
[12] Ad, Marketing Spending to rise 3.9% in 2008, Media Post, Erik Sass July 16, 2008
[13] EMI Strategic Insights Report : The Viral Impact of Events, Event Marketing Institute 2007
• Dawkins, P. and Reichheld, F. (1990) "Customer Retention as a Competitive Weapon", Directors and Boards, vol
14, no 4, 1990
• George, W. (1990) "Internal marketing and organizational behavior: A partnership in developing
customer-conscious employees at every level", Journal of Business Research, vol 20, no 1, 1990, pp 63–70
• Levitt, T. (1983) "After the Sale is Over", Harvard Business Review, Sept-Oct, 1983
• McKenna, R. (1991) "Marketing is Everything", Harvard Business Review, Jan-Feb, 1991, pp 65–70 (ebook)
• Schneider, B. (1980) "The Service Organization: Climate Is Crucial", Organizational Dynamics, vol 9, no 2,
1980, pp 52–65
• Christopher, Payne and Ballantyne (1991) "Relationship Marketing: Bringing Quality, Customer Service and
Marketing Together", Oxford, Butterworth Heinemann
Shopper marketing
Shopper marketing
Shopper marketing is "understanding how one's target consumers behave as shoppers, in different channels and
formats, and leveraging this intelligence to the benefit of all stakeholders, defined as brands, consumers, retailers and
According to Chris Hoyt "Shopper marketing [is] brand marketing in retail environment." Since it includes category
management, displays, sales, packaging, promotion, research and marketing "Shopper marketing is the elephant in
the room that nobody sees the same way." ([Shopper Marketing book][1] , Kogan Page 2009)
Shopper marketing is not limited to in-store marketing activities, a common and highly inaccurate assumption that
impairs the spread of any industry definition. Shopper marketing must be part of an overall integrated marketing
approach that considers the opportunities to drive consumption and identifies the shopper that would need to
purchase a brand to enable that consumption. These shoppers need to be understood in terms of how well they
interpret the needs of the consumer, what their own needs as a shopper are, where they are likely to shop, in which
stores they can be influenced in, and what in-store activity influences them.
Unilever defines a shopper insight, an insight upon which shopper marketing is based - as a "focus on the process
that takes place between that first thought the consumer has about purchasing an item, all the way through the
selection of that item."[2] Shopper marketing challenges the assumption that the shopper and the consumer are the same. Despite the fact that
this is not always true (consider the consumer and shopper of pet food for a moment) it is clear that the industry still
gets confused.
Shopper marketing is important for many reasons, but it is clearly of importance to manufacturers if for no other
reason that they spend vast amounts of money on it, and that these amounts are increasing. Many organizations
spend over 8% of total sales on in-store marketing; when total trade spend is added up it can often top 40% of total
In shopper marketing, manufacturers target portions of their marketing investment at specific retailers or retail
environments. Such targeting is dependent on congruency of objectives, targets and strategies between the
manufacturer and a given retailer or a given type of retail environment.
A significant factor in the rise of shopper marketing is the availability of high quality data from which insights may
be gleaned to help shape strategic plans. According to recent industry studies, manufacturer investment in shopper
marketing is growing more than 21% annually.[3]
For instance, Procter & Gamble, according to the company’s financial statements, invests at least 500 million dollars
in shopper marketing each year.[4] Procter & Gamble's Wal-Mart Customer Team as well as ThompsonMurray (now
Saatchi & Saatchi X), are considered by many as the original pioneers in true Shopper Marketing in the US. Shopper
marketing is also practiced by the leading European companies such as Unilever and Beiersdorf and the discipline is
developed further by the likes of Phenomena Group, Europe's first shopper marketing agency.[5]
The following statistics have caused the reapportionment of marketing investment from consumer marketing to
shopper marketing (it must be noted that what follows is ultimately very misleading; each brand performs differently
based on shopper need states, shopper trip types, retailer formats, brand importance, brand relevance and a host of
other factors:
• 70% of brand selections are made at stores[3]
• 68% of buying decisions are unplanned[6]
• 5% are loyal to the brand of one product group
• Practitioners believe that effective shopper marketing is increasingly important to achieve success in the
Shopper marketing
Partial areas
Shopper marketing is rooted in consumer marketing and the principles of consumer marketing often apply to shopper
marketing. For instance, shopper marketing refers to the marketing stimulus reaching the shopper, which is based on
an understanding of the shopper’s buying behaviour. Like the traditional marketing mix, shopper marketing can be
divided into four P's: product; price; place; and promotion.
Product: size, shape, color, material, packing, packing messages, and graphics.
Price: discounts, bundled offers, price communication, and coupons.
Place: store concept, lighting, shelves, and placing of special presentations.
Promotion: packing promotions, store promotions, promotion communications, special presentations, in-store TV,
floor stickers, as well as advertising on shopping carts and baskets
Buying behaviour data
Several different data collection methods provide information on the shopper’s buying behavior of a given brand:
observations, intercepts, focus groups, diaries, point-of-sale and other data.
Observations made before entering a store, in the store, and after exiting a store clarify when, what, where, why, who
and how shopper behavior occurs.
Issues to be noted consist of, for example: the length of the buying process, the items the shopper noticed, touched,
studied, the items the shopper bought, as well as the purchase methods influencing the process. Interviews help
uncover motives guiding the buying behaviors. The matters commonly clarified are: the likelihood of product
substitution and the identification of substitutes; values and attitudes; desires and motivational factors; as well as
lifestyle and life situation. Point-of-sale data provide information on which products were bought, when and for how
much (and sometimes by whom when a frequent shopper card can be used).
Segmenting shoppers
When conducting shopper segmenting, the market is divided into essential and measurable groups, that is, segments
on the basis of the buying behaviour data. Shopper segmenting makes it easier to answer the requirements of
individual segments. For example, price-sensitive and traditional shoppers clearly differ from one another as far as
their buying behaviour is concerned. Segmenting makes it possible to target marketing measures at the most
profitable shoppers.
Examples of Shopper segmenting
• TESCO[8]
Finer Foods
Price Sensitive
Social Shoppers
Brand Aspirationals
Price Value Shoppers
Shopper marketing
Trendy Quality Seekers
Price Sensitive Affluents
One Stop Shoppers
Conscientious Objectors
[1] http:/ / www. amazon. com/ dp/ 0749457023
[2] http:/ / hubmagazine. com/ html/ 2008/ may_jun/ unilever. html
[3] http:/ / www. gmaonline. org/ publications/ docs/ 2007/ shoppermarketing. pdf
[4] http:/ / www. matthiasmoneyboard. com/ documents/ articles/ Advertising%20Age%20-%20The%20Rise%20of%20Shopper%20Marketing.
[5] http:/ / www. amazon. com/ dp/ 0749457023
[6] http:/ / www. mediabuyerplanner. com/ 2006/ 08/ 29/ nielsen_instore_ads_sway_68/
[7] http:/ / www. oxfordsm. com/ OxfordSM_Shopper_Marketing. pdf
[8] http:/ / www. coriolisresearch. com/ pdfs/ coriolis_tesco_study_in_excellence. pdf
[9] http:/ / hubmagazine. com/ archives/ the_hub/ 2007/ mar_apr/ the_hub17_hoyt. pdf
Undercover marketing
Undercover marketing
Undercover marketing (also known as buzz marketing, stealth marketing, or by its detractors roach baiting) is a
subset of guerrilla marketing where consumers do not realize they are being marketed to. For example, a marketing
company might pay an actor or socially adept person to use a certain product visibly and convincingly in locations
where target consumers congregate. While there, the actor will also talk up their product to people they befriend in
that location, even handing out samples if it is economically feasible. The actor will often be able to sell consumers
on their product without those consumers even realizing that they are being marketed to.
Reasons for undercover marketing
An undercover campaign which aims to generate buzz, is economical, and once sufficient buzz has been generated,
is almost free, as consumers "market" the product to others, through a network of referrals which grows and grows.
Buzz campaigns can reach consumers isolated from all other media, and unlike conventional media, consumers tend
to trust it. Marketers find it very hard to predict buzz let alone generate it on demand. However, when it works,
undercover marketing does exactly that: an ideal consumer from the example above will not only begin using that
product themselves, but will also tell their friends about it, inciting a planned viral marketing campaign that looks
spontaneous. Financial risk here is relatively small because such marketing approach requires fewer expenses and is
usually more cost-effective as well. Undercover marketing is used when traditional marketing techniques have been
exhausted and investors are looking for a new effective solution for their marketing needs.
It is the consumer's sense that this recommendation was spontaneous and unsolicited, and the resulting feeling that
"one good turn deserves another", that drives the buzz. So, the "bought and paid for" aspect of the transaction must
remain hidden. Overall, the person doing the marketing must look and sound like a peer of their target audience
without any ulterior motive for endorsing the product—employees of the company cannot do undercover marketing,
nor can celebrities (except possibly to other celebrities).
If marketers fail to hide the campaign, they run considerable risk of backlash. In cases where consumers discover
they have been manipulated into liking the product, they generally become angry at the marketer (and by association
that product) over being misled. This has led some to apply more derogatory names to undercover marketing, such as
roach baiting, likening the products marketed this way to poison. In some cases, the amount of buzz generated by a
failed campaign can exceed that of a successful one, only with the opposite of the desired result.
An example of this sort of backlash can be found in Sony Entertainment's debacle with Zipatoni. Zipatoni attempted
to engage in a stealth marketing campaign, which was quickly detected by the internet community. Sony
immediately experienced backlash from video game enthusiasts. Their ad campaign was perceived by the
community to be shallow enough that it insulted Sony's target audience by implying that they were shallow enough
to fall for it.[1]
Internet marketing
When targeting consumers known to be consistent Internet users, undercover marketers have taken a significant
interest in leveraging Internet chat rooms and forums. In these settings, people tend to perceive everyone as peers,
the anonymity reduces the risk of being found out, and one marketer can personally influence a large number of
people. During the dot com boom at the turn of the century, stock promoters frequently used chat rooms to create a
buzz and drive up the price of a stock.
Undercover marketing
Whatever the risks, undercover marketing only requires a small investment for a large potential pay off. It remains a
cheap and effective way of generating buzz, especially in markets such as tobacco and alcohol where media-savvy
target consumers have become increasingly resistant or inaccessible to other forms of advertising.
Examples of undercover marketing
Sony Ericsson used stealth marketing in 2002 when they hired 60 actors in 10 major cities, and had them "accost
strangers and ask them: Would you mind taking my picture?" The actor then handed the stranger a brand new picture
phone while talking about how cool the new device was. "And thus an act of civility was converted into a branding
event." (Taken from Walker, Rob. The Hidden (In Plain Sight) Persuaders. New York Times Magazine; Dec 5,
2004; New York Times pg. 68)
Wikipedia has become a tool for undercover marketing.[2] The creation of Wikiscanner, for example, has revealed
attempts at manipulating Wikipedia's content by a large number of business, government, and special interest
The topic of undercover marketing is explored as part of the 2003 documentary film, The Corporation, as well as in
the fiction movie, The Joneses, a satire which arrived in theaters in April 2010.
[1] Krotoski, Aleks (2006-12-11). "New Sony viral marketing ploy angers consumers" (http:/ / blogs. guardian. co. uk/ games/ archives/ 2006/
12/ 11/ new_sony_viral_marketing_ploy_angers_consumers. html). The Guardian (London). . Retrieved 2010-05-26.
[2] "What To Do When Your Company Wikipedia Page Goes Bad" (http:/ / searchengineland. com/ 070627-094651. php). .
[3] "CIA and Vatican edit Wikipedia entries" (http:/ / afp. google. com/ article/ ALeqM5hQZJCJoqqxOg0hPZi42Sb1Ecj-TQ). .
External links
• Letter requesting FTC to investigate deceptive "Buzz Marketing" includes many examples (http://www.
Article Sources and Contributors
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Gioto, Glormell, Gscshoyru, Gwjetson, Gyanendra1973, HaeB, Hahih, Harishbishtvcindia, Hasit savani, Hechung, Hu12, IW.HG, ImperfectlyInformed, Indon, J.delanoy, Jagbandhu007,
James7862, JamesBWatson, Javierito92, Jeepday, Jeff G., Jeffhane100, Jeffrey Henning, Jeffrey Scott Maxwell, Jhabib, Jjoseph, Jmpeot, Johnuniq, Jstplace, KnowledgeOfSelf, Kuru,
Lawrence.larry.huong, LeeSmith2, Lemonmedia, LibLord, Luapnampahc, Luna Santin, Luposp, Mainmahan, Majorly, Malcolma, Marek69, Markbrooks1, Martial75, Martync84, MaxPont,
Mendaliv, Merlion444, Mezigue, Michael Hardy, Mikesmith22, Miquonranger03, Mjjmdekk, Mohamed Ouda, Molemannintynine, MrEdwards1980, MrOllie, Mydogategodshat,
Mygerardromance, Mythdon, N25260, Naderkob, Naohiro19, Nasheuh, Natanv, Nposs, NutterCurtis, Nvsware, Ohnoitsjamie, Oldwes, Opal727, Otenki, Patar knight, Philg88, Phronetic,
Pigsonthewing, Pinethicket, Plinkit, Pranjaldas, PrincessofLlyr, Prophile, ProveIt, PureProf, QSR International, RHaworth, RazorICE, Requestion, Resourcedepot, Rich Farmbrough, Riham
Youssef, Ripepette, Rnbradhey, Rockfang, Ronz, RossyMiles, Rsrikanth05, Ruud Koot, Ryan Vesey, SFS4Wiki, SOXGAL, Salvio giuliano, Santryl, SchnitzelMannGreek, Seobeast,
Shadowjams, Shamesspwns, Shirulashem, Slakr, Snigbrook, Srkview, Suffusion of Yellow, Synchronism, THEN WHO WAS PHONE?, TastyPoutine, Tenoopy, TexasAndroid, The Thing That
Should Not Be, Thekohser, Thingg, Throwaway85, Tired time, Tomsega, Tomwtom4, Tone, ToomSnyder, UberScienceNerd, Ueberolsen, Ukexpat, Valentinejoesmith, Vegaswikian, Vinanc1,
WikiDon, William Avery, WinterSpw, Yamaguchi先生, Yono, Zzuuzz, 467 anonymous edits
Marketing strategy Source: Contributors: 1exec1, 65biscayne, Ahoerstemeier, Aksi great, Aleodor, Alexkin, Alro, AndrewCarey,
AndrewHowse, Angela.hausman, Angieprk, Anna Lincoln, Askirisfields, Auburn, Avnjay, Binary TSO, Blawrimore, Bobtrothphd, Bonadea, Cacycle, CaptainVindaloo, Carl.bunderson, Cdumas,
Chrislk02, Christian75, Coastergeekperson04, CommodiCast, Craftyminion, Dancter, Darth Panda, Deli nk, DennyColt, Dreadstar, Edward, Ehheh, Ehoopman, Emitchell62000, EsheleD,
Fairsing, Faradayplank, Fbooth, Felagund, Free Bear, Futureobservatory, GIBDO, Galoubet, Gazimoff, Gioto, GloriaReibin, Grochim, Herven, HyperSonic X, Intershark, Iridescent, It Is Me
Here, JYi, Jackboogie, Jacotto, Jdkrishnan, Jdparm 99,, Karaoo, Kiousu, KnightRider, KrakatoaKatie, Kuru, L Kensington, LOL, Lancevortex, Lcarsdata, Leszek Jańczuk, Mabdul,
Malcolmxl5, Matthew Yeager, Maurreen, Meaghan, Meara, Meekywiki, Melaen, Mikevan9, Mixer, Monterey Bay, Mpostalova, MrOllie, Msprinciples, Mydogategodshat, Nate1481, Necronaut,
Neilc, NurseryRhyme, Orange Suede Sofa, Patstuart, Pgreenfinch, Plinkit, Poeloq, Prodman121, Rasmus Faber, Res2216firestar, Rjcain, Robofish, Ronz, Rtcpenguin, Schalliol, Sexy monkey,
ShaliniSamuel, Sigmundur, Signalhead, Simon Golong, Sionide, Sjhaines, Sleepyhead81, Snowolf, Speedoflight, Starkawa, StefanoIT, SueHay, The Rambling Man, The Thing That Should Not
Be, Theopapada, Tide rolls, Tnxman307, Twas Now, VikingLAB79, Waggers, WikHead, Wikiklrsc, Wikipelli, X3christian1, Xezbeth, Yankees76, Yonatan, Z4ngetsu, Zero Gravity, 354
anonymous edits
Market segmentation Source: Contributors: [email protected], 4L14S, A. B., ANTIcarrot, Accom06, Alfredxz, Alveolate, AndrewHZ,
AndrewHowse, AndriuZ, Angr, Angusmcr, Anna Lincoln, AppleJuggler, Avoided, Babtod, Bbarbara, Beland, Belovedfreak, Bobbo, Bobo192, Bodnotbod, Brad Kenney, Breaker-One, Btball,
CZmarlin, Chrono13, Closedmouth, Ctbolt, Cyrius, DJ John, DanQuirk, Darth Panda, Dave w74, Davewho2, Deli nk, Deville, Dgies, Dineshdl92, Discospinster, DougG74, Drucker1900,
Edschofield, Ehn, Either way, Epicurus One, Feezo, Feldmahler, Firebreather5, Funandtrvl, Gary King, Gec118, Gomez583, Grandhi, GreenReaper, GuyRo, Halaster, Henrygb, History2007,
Intelligentsock, Iridescent, Itzuvit, Ivansanchez, JHP, James086, JamesGrimshaw, Jeff3000, JeremyA, Jessicanr, Jjoseph, Joey 127, JohnC1987, Jojhutton, Jorgerestrepo, Josh Parris,
Joshisasickman, Jowe84, Katij13, Kennk69, Kingfish, Kjramesh, KnightRider, Kodenkan, Krashlandon, Layonard, LennartBolks, Leujohn, Liberatus, Little Mountain 5, Lowellian, Lvova, Matt
B., MatthewKarlsen, Maurreen, Maven111, Mbello, Merix, Merlinsorca, Michael.mancini, Mosca, MrOllie, Muckna, Mydogategodshat, Nbarth, NerdyScienceDude, Nhinds, Otenki, Patrushton,
Pax85, Peter Hitchmough, Pgreenfinch, Plinkit, Plutonian, Poindexter Propellerhead, ProductBox, Psychonomics, QuantumEngineer, Qwerty Binary, Qwertyytrewqqwerty, RandMC, Raystorm,
Requestion, RexNL, Ronz, Rosie Phipps, Rwarp, SJH27, Sam mishra, Scbalazs, Scientus, Shizhao, Sho Uemura, Shrey java, Shubhamiitr, Signalhead, SkerHawx, Snc, Sniper Elite,
Sniper-Bahamut, Someguy1221, Springnuts, SteinbDJ, Stephan Leeds, Stolen flame, StuartF, Swpb, Tekjester, The Anome, The Thing That Should Not Be, TheObtuseAngleOfDoom, Thekohser,
Thetexasranger, Thomasmeeks, Tiddly Tom, Tmonzenet, Tomlillis, Tommy2010, Torres056, Typeform, Us441, Vadmium, VasilievVV, Violetriga, Viridae, Waldir, Wik, Wikidsoup, Wtmitchell,
Zigo1232, Zimbardo, Zundark, 367 anonymous edits
Profit (accounting) Source: Contributors: DocWatson42, Gary King, Hakseng, HiLo48, Jay-Sebastos, Julesd, Kookiethebird, Landroni,
Levineps, LilHelpa, Meffo, Mike Rosoft, MrOllie, R'n'B, RJN, Seomad2010, Versageek, Wavelength, 维尼尔基, 24 anonymous edits
Pricing Source: Contributors: [email protected], ABarnes94, After Midnight, Artoasis, Beezhive, Besselfunctions, Bjdehut, Bluemoose, Bucktrout,
Cgsaw, Chester Markel, Chris Roy, Colonies Chris, Coolpriyanka10, Cretog8, DARTH SIDIOUS 2, DarkFalls, Data.nono, DavidLevinson, Debresser, Deepali1829, DougG74, Dr. Eye Fly,
Edward, Edward321, Ehheh, Elf, Estelami, Ethansdad, Fablopez, Fairsing, Fang Aili, Federico Tortorelli, Flowerparty, Futureobservatory, Glennwells, Godofgaming1337, Gregalton, Haakon,
HappyCamper, Iain99, Intelligentsium, JMB376, JaGa, Jeepday, Jeffeh, Jeisenberg, John Carl Thomas, Jonschweitzer, Joshlk, Kerrio, KnightRider, Kottler's shadow, Kuru, Kvan1st, Levineps,
Liface, Lowellian, Lradrama, Marley katie, Mathopmark, Maurreen, Melchoir, Michael Devore, Michael Hardy, Mion, Modulatum, Mr.Clown, MrOllie, Mydogategodshat, Nomissolutions,
Notheruser, Nyttend, ONUnicorn, Paolonalin, Patrick, Pearle, Piano non troppo, Pieter Kuiper, Pinethicket, Pinkadelica, Plasticup, Pnm, Prasenjitmukherjee, Queenie Wandy, Reaper Eternal,
Reinyday, Reubenswartz, RexNL, Rhobite, Rhombus, Richard Arthur Norton (1958- ), Robert-McKinney, Robocoder, Saibo, Sam Hocevar, Sandhyavempati, Sed, Shadowjams, SkippyNZ,
Skipsievert, Squids and Chips, Stevertigo, Stochastic Financial Model, Stratadrake, StuRat, Tabletop, The Anome, The Hybrid, The Thing That Should Not Be, Tiles, Timo437, Tylermacnet,
Ulric1313, Utcursch, Vald, Verne Equinox, Vivio Testarossa, Wik, WikHead, WikipedianRD, Wine Guy, Yidisheryid, Yiosie2356, Zzuuzz, 161 anonymous edits
Positioning (marketing) Source: Contributors: Adam.Wasserman, Adraeus, Aglobalbridge, Angela, Anonymous Cow, Bkasanoff, Bobet,
Bonadea, CUBJONES83, Cacycle, Ceejayoz, Centerbrainer, Clappingsimon, Cretog8, DDerby, Da monster under your bed, Dddaye, Discospinster, Epbr123, Espoo, Excirial, Fæ, Gary D,
Gfunk01, Graham87, Gurch, Gwernol, Hughgraham, JackyR, Jalayamini, Jlinjpn, JohnCD, Katasli, KatieBok, Kevinlevi, Khoj badami, Kkkishore, LilHelpa, Lindsay658, MER-C, MJelsema,
Martpol, McGeddon, Michael Snow, Mydogategodshat, NavT, Nutcracker, Ohnoitsjamie, Patrick, Pgreenfinch, Pinar, Plinkit, Poor Yorick, Puppyfuzz, Qwfp, Rajeearul, Rgiesen, Ronz, Ruud
Koot, Sesilbumfluff, Shribarni, Skarl the Drummer, Smooth O, Somno, The Anome, The manekin, Thegn, Theopapada, Tide rolls, Tobych, TwistOfCain, Typeform, UncleDouggie, Wavelength,
Wegesrand, Wetman, Wildesusan, Xil, Zundark, 142 anonymous edits
Promotion (marketing) Source: Contributors: ABF, Aldo samulo, Alexius08, Alfredxz, Amontron, Ampersandexplainer, Ancheta Wis,
AndrewHowse, Apokryltaros, Battamer, Bobo192, Bonadea, Briaboru, Cacycle, Camw, Can't sleep, clown will eat me, Cape cod naturalist, ChiragPatnaik, Ckatz, Contributor29wiki, Csus814,
DMacks, DasBub, Decltype, Deor, Discospinster, DéRahier, Ersajid01, Fabiv, Fenice, Flowerparty, Fourohfour, Furrykef, Futureobservatory, Gec118, Glen, Glenn.isaac, GraemeL, Grochim,
Hclim65, Husond, J.delanoy, JHunterJ, JLaTondre, Jeff G., Jjjchang, Jncraton, Johnleemk, Jusdafax, Kdweck-NJITWILL, Kelly, Kingpin13, Kuru, Kwlovell, Levineps, LilHelpa,
Linkspamremover, Lommer, MagnusA, Mattisse, Maurreen, Michael Devore, Milanvi, Myataya, Nartaur, NawlinWiki, ONUnicorn, Occlasty, Oxymoron83, Pangweb, Patrick, Pelangiholiday,
Petr Kopač, Phynicen, RHaworth, Rosehu, Rosenjon, Rossami, Salamurai, Sesu Prime, Spiritia, Sschickel, Stevertigo, Surridge89, Tide rolls, Tom, Tree Biting Conspiracy, Utcursch, Versageek,
Wafulz, Wizzzzman, Woohookitty, Zzuuzz, 133 anonymous edits
Outline of marketing Source: Contributors: 4L14S, Auroranorth, Barticus88, Black Falcon, DFS454, David Kernow, EsheleD,
Faradayplank, Feezo, Fram, LEMeZza, Minnecologies, Mr pand, Philip Trueman, RHaworth, Rlsheehan, RobDe68, Robert Skyhawk, Stefan, SteinbDJ, Svick, TAnthony, The Transhumanist,
The Transhumanist (AWB), True Pagan Warrior, UnitedStatesian, Woohookitty, Федотов Геннадий, 20 anonymous edits
Alliance marketing Source: Contributors: Conquistador2k6, Harro5, Idea Farm, PamD, Rich Farmbrough, Streamed, Tassedethe,
Ambush marketing Source: Contributors: 4kfdier, AEMoreira042281, Antediluvian67, Betacommand, Bogdangiusca, BozMo, Coyets,
Dale Arnett, Daniel Olsen, Dark jedi requiem, Denelson83, Egoober, Eleassar, Flowanda, Fogeltje, Galaad2, GilbertoSilvaFan, Gonzonoir, Grovernorquist, Hamedog, Hoov23, IP 84.5, Ilion2,
Iridescent, JMyrleFuller, Jliao20, M.nelson, Mauls, Mboverload, Michaelas10, Mykuhl, Niayre, Rich257, Rjwilmsi, Segasmith, Stefanomione, Stevouk, Stewie814, Tassedethe, The Anome,
Tintin1107, Ufwuct, Vardavas, WalterGR, Wangyiliu99, Welsh, Woohookitty, Zingi, 50 anonymous edits
Article marketing Source: Contributors: 2, A. B., Allansandoval, Articleproductions, Atreyee.c, Autumndelise, Barek, Betacommand,
BillPlattOklahoma, BlackWalker, Bobo192, Bonadea, BookReviewer, BrightBlackHeaven, Bsanders246, Chrisgeldof, Contributor29wiki, Crazywaters, Diannaa, Digiboyz, Digitalpointstore,
Discospinster, Ebyabe, Evb-wiki, Excirial, Ezinet, FatalError, FireBossArticles, Flowanda, Foobarnix, Geni, Geoffcruz, Giorgio-1970, Gmazeroff, GoKaizen, Grafen, Headbomb, Helper52,
Himmi Bangia, Holeyness, Ichhaberotesapfel, Iron32, Johnnyjohnson2008, Johnuniq, Kevman86, Kkmurray, Klopamka, Krawi, Kuru, Letsmak1, LittleOldMe, MER-C, MONGO, Matt2727,
Merope, Mindmatrix, Mion, Mnederlanden, MrOllie, Namecritic, NawlinWiki, Nonamaz, Nostngn, Ohnoitsjamie, Panawhome, Peejaydee, Princetvm, Psychic1, Radagast83, RandomXYZb,
Ratemonth, Resis101, Richatattributor, Rollmodl, SEGuru2, Scarfeet, Shadowjams, Siammove, Socialjest404, Stenora, Steve Bradshaw, Stevegoble, Super81, Taltalk, TheGiftedOne, Tompetters,
Tpb, Trusilver, Versageek, Wafulz, WebRank, Weeee1, Y13hargav, Youmsh, ZimZalaBim, Zzuuzz, 162 anonymous edits
Article video marketing Source: Contributors: Barek, BrightBlackHeaven, Giorgio-1970, Kjkolb, Klopamka, 3 anonymous edits
Article Sources and Contributors
Cause marketing Source: Contributors: Alexius08, Benjiboi, Bwburtch, Cbintern, Clicketyclack, Cybercobra, Cygnusloop99, Dclinton,
Epolk, Erg626, Ethicalhels, Fang Aili, Favonian, George The Moose, Hu12, JLaTondre, Jackiengai, Jg1676, Jgagent, Jocelyne Daw, Joel7687, Johnwgarrett1, Kuru, Lightmouse, Markdubowski,
MrVibrating, Ohnoitsjamie, Plinkit, Pwitham, Rkitko, SalomonCeb, Stefanomione, Tb, Uberveritas, Uffefh, Valrith, Vox Rationis, Woohookitty, 81 anonymous edits
Close Range Marketing Source: Contributors: Bearcat, Cesium 133, Darth Stabro, Malcolma, Noodleheadstudios
Cloud marketing Source: Contributors: 1ForTheMoney, Adi4094, Antiuser, Bearcat, Epbr123, Gmuessig, January, Jkgibbs, Kayau,
M.O.X, Malcolma, Mikey Mikati, Mufka, 9 anonymous edits
Communal marketing Source: Contributors: Darkfrog24, Deville, EVula, Edward, Gyrofrog, JaGa, Razorfishes, Sam Hocevar, Shell
Kinney, Stefanomione, SueHay, Thu, 2 anonymous edits
Community marketing Source: Contributors: Abanima, Asbarali, Btyner, Claireshegoesagain, Jeepday, Joel7687, Lanscorp, Muhends,
Myanw, NetBurst, Nrcjersey, Plinkit, RHlavac9552, Retired username, Rjwilmsi, Ronz, Stefanomione, Tantrum56, Wossi, Xtfer, 23 anonymous edits
Consumer-generated marketing Source: Contributors: Bearcat, Darkfrog24, Drat, Frap, Lauradu, Pcintern, Richard Arthur Norton
(1958- ), Scepia, Skier Dude, The Storm Surfer, WBardwin, Whoisjohngalt
Cross-media marketing Source: Contributors: Alansohn, Arthena, BD2412, Clicketyclack, Emperor, Evb-wiki, JQF, OrangeDog,
Radiojon, Rd232, Scohoust, Stefanomione, TCUstudent101, Tassedethe, Wknight94, Woohookitty, YUL89YYZ, 57 anonymous edits
Customer advocacy Source: Contributors: Cybercobra, Jennyrexp, RHaworth, Tedder
Database marketing Source: Contributors: AbsolutDan, Argon233, Arpabr, Athapliyal, Beetstra, Bobo192, BusinessBenjamin,
Cdmglchen, Ceyockey, Charles Matthews, ClementSeveillac, Dan121377, Destinationdirect, Dmccreary, Doctor Whom, Dpaking, Drakedirect, Dvdpwiki, E2kk6n, Elmschrat, Eltiar, Gogo Dodo,
Idea Farm, James7862, Joy, KConWiki, Kevintoribert, Luckyz, Mark.murphy, Materialscientist, Maurreen, Mdd, Michael Hardy, Mikeo, Mindmatrix, Mschlindwein, Muchris, Mydogategodshat,
Nrcjersey, Nutcracker, Ohnoitsjamie, Plinkit, Pmj005, Pshibles, Requestion, Shadowjams, Squids and Chips, Stefanomione, Tom Morris, Touchinfomedia, WikHead, Woohookitty, Zzuuzz, 99
anonymous edits
Digital marketing Source: Contributors: Abhishekusoni, Alansohn, AvicAWB, BGlassman, Barek, Beetstra, Bonadea, Branden
654333%, Caseymaeknox, Cmezera, Coast123, Contributor29wiki, Corpx, Cumbrowski, Dancefreak76, Danlev, Delicious carbuncle, Dgall87, Dimidi, Discospinster, ElReyalto, Falcon8765,
Fuddydud20, Giorgio-1970, Globalmuseum, Gwernol, Hanssmellinckx, Headbomb, Herostratus, HowardTScott, Indrajit champaty, Jeffrey Scott Maxwell, Jehochman, Johnuniq, Kuru, Lily0182,
Loaww, Lotje, Lynxgeeknyc, Markguy, Matdrodes, Mion, Miztinsel, Net2userness, Nuttycoconut, OS2Warp, Oberstpac, Ohnoitsjamie, Oicumayberight, PBR Recordings, Pangaconsultant,
Phudz7o, PoisonedPigeon, Psharma1720, RTG, Radagast83, Randomalias, Richi, Sanjeevgcom, Sanko, SiobhanHansa, Somatica, Stefanomione, Steve Bradshaw, SteveChipman, TastyPoutine,
Teapotgeorge, Theopapada, Timtrent, Versageek, Viewstream, Vishalaptco, Webwat, Whywater112, Woohookitty, Ylem, 104 anonymous edits
Direct marketing Source: Contributors: Adam Scott 89, AndrewHowse, Andrewpmk, Appraiser, Arpingstone, Art LaPella, Banjaloupe,
Benreser, Betacommand, Bleaney, Bloodshedder, Brockwellb, Calltech, Capricorn42, Carmichael95, Cbritland, Cdc, Cdmglchen, Chenzw, Chill Pill Bill, Chris surfrider, Chutty, Ckatz,
Clintbratt, Closedmouth, CommodiCast, ConsumerBase, Courcelles, Cpok25, Crocodile Punter, D.h, DMacks, Dekisugi, Deli nk, Delicious carbuncle, Destinationdirect, Djmorrisuk, Dmp348,
Doctor Whom, Doh5678, DotKuro, Dpaking, Dragomiloff, Dreams, Dustink0220, Ebyabe, Econent, Ed Poor, Edeskonline, Editormax3, Elwikipedista, Enzo AT, Erianna, ErikWarmelink,
Erth64net, Excirial, Fairsing, Fbooth, Fieldday-sunday, Flewis, Fordsaeks, Fubar Obfusco, Futureobservatory, Fuzheado, Gaius Cornelius, Garzo, Gcsmithjr, Geogre, Gioto, Gogo Dodo,
GraemeL, Grick, Guroadrunner, Gwernol, Haakon, Hans Adler, Hertz1888, IanD, Iano, InsiderInformation, Iology, Ishmaelville, J1981, JaGa, Jacosis, Jan van Male, Janke, Jaxl, Jcembree,
Jdfalk, Jdschulte, Jeekc, Jef-Infojef, Jeffdobkin, Jeffrey Scott Maxwell, Jeremy Bolwell, John Vandenberg, John.v.schmitt, JohnKendall, Jon Hart (UK), Jonkerz, Jorunn, Justdaiwil, Jwallert,
Kate, Kevintoribert, Khalid hassani, Kmarch92037, Kuratipas, Kuru, Kvn8907, Kwazeen, Leoniana, Levineps, Linkoman, Linkspamremover, Lksajeev, Loaww, Londoncreative, Lordmac,
MER-C, Mails2g, MapleD, Marcned, Markguy, Mathmo, Maurreen, Mdd, MediaPlannus, Merlin Matthews, Michael Hardy, Mnialex, Mooreseo, Msmith993, Mspandana, Mydogategodshat,
NatalieJune, Neutrality, Nutcracker, Nyc10025, Ohnoitsjamie, Olivier, Omegatron, Oscar90328, Ousios, PMDrive1061, Penmaster, Perfecto, Peterrand, Petyacekova86, Phatmikey, Philip
Trueman, Philwalker, Piano non troppo, Pop1corn, Powershelled, Praxeas, Psimms, Rasmus Faber, ReithBBC, Rhobite, Richard Arthur Norton (1958- ), Rjwilmsi, Roaldrich, Roamataa, Rock2e,
Ronz, RoyBoy, Rrburke, Salennox, SandyGeorgia, Sanjiv swarup, SarekOfVulcan, SchuminWeb, Sdbmaranello, Sethnessatwikipedia, Shantavira, Silvanus, Simpsnut14, SiobhanHansa, Smack,
Soap, Stefanomione, Stjm, Stuowens, Surendra Rajpurohit, Sycthos, [email protected], Teapotgeorge, Teri Ives, The Thing That Should Not Be, Thelmadatter, Thomas Golding160, TimBentley, TimRaines,
Tonyattwood, Trystan, Tuckeg01, Tverbeek, Veinor, Veron, Versageek, Victor-435, Wikicord2009, Wimt, Woggly, Words77, Xandi, Xyzzyplugh, Zehii, Zora, Zzuuzz, Zzyzx11, 337 anonymous
Diversity marketing Source: Contributors: DIV2008, Divda, DogsBreakfast, Jemiller226, Plinkit, Princess Tiswas, Stefanomione,
TenPoundHammer, TerriersFan, The Gamma King, The Rambling Man, 5 anonymous edits
Ethical marketing Source: Contributors: Charles KnNell, Creativeo, Freddie80, Gzkn, Jan.Smolik, Kuru, Lotje, Slgrandson, Spiritia,
Stefanomione, Utcursch, Will Beback, 11 anonymous edits
Evangelism marketing Source: Contributors: Alansmlxl, Art LaPella, Casidougal, Cimon Avaro, Cloudtracer, Denimmonkey, Disperse,
Eastlaw, Francoise2000, FrummerThanThou, Hu12, JimPlamondon, Melaen, Plinkit, Reconsider the static, Robofish, Stefanomione, Truecalling9, Versageek, VladGenie, Whoisjohngalt, 9
anonymous edits
Figure of merit Source: Contributors: Aushulz, BenKovitz, BoatMesa, Bobblehead, Bryan Derksen, David Latapie, Fulldecent, Gilliam,
Jim.henderson, Jneubarth, Jorcoga, Memming, Mentifisto, Qutezuce, R4gn4r, Snowboard975, Soler97, Srleffler, Stefanomione, Strait, Tarchon, Thunderbird2, Zhangzhe0101, 21 anonymous
Global marketing Source: Contributors: AEF, Alex-thong, Ash.chobhe, Auntof6, BarretBonden, Ben Ben, BillHamiltonus, Briangogan,
Bulldog73, CXCV, Chris the speller, Ckatz, Cliftonian, Cody574, Cometstyles, Da monster under your bed, Download, DrFO.Jr.Tn, DrTh0r, Dreblowski, Favonian, Freckles.10.6.2005, Friday13,
GTBacchus, Gary King, GlobalNegociator, Grayshi, Jac16888, Jeffrey Mall, JimVC3, Jncraton, John of Reading, Kgresham20, LittleOldMe, Lochinvar11, LordCo Centre, Lyonzy90,
MajorStovall, Mikhailov Kusserow, PhilKnight, PigFlu Oink, Plinkit, Pointillist, Pxma, Ronz, Russellfirst, Sanwar, Shakinglord, Spiritia, Stefanomione, SuzanneKn, Tapintida, TastyPoutine,
Technobadger, The Thing That Should Not Be, Tresiden, UncleDouggie, Useight, West.andrew.g, Wikipelli, 135 anonymous edits
Guerrilla marketing Source: Contributors: 1oddbins1, AS, Abevicman, Aborelli, Afa86, Alphabettyjen, Amygdala, Andrew Kanaber,
Andycjp, ArcadisAlex, Arjwiz, BPI1959, Bachrach44, Barryap, Bethlynn, Blehfu, Bluerasberry, Cacycle, Canaima, Cbdesign, ChrisG, Cmontero, Cobo1981, CyberSkull, DAJF, Danlev, Deli nk,
Descendall, Dico cph, Download, Downtown dan seattle, Drbreznjev, DreamGuy, EMToronto, Eeekster, Err0r 1, FCYTravis, Farbal9999, Fourohfour, FullAccessExp, Gadfium, Gec118,
Giulzgia, Globe.explorer, GraemeL, Guerrillamktg, Habichtshorst, Henslee57, Heroeswithmetaphors, Hkim43, Holdcube, I already forgot, II MusLiM HyBRiD II, Igrowyourbiz, Iridescent,
Irishguy, JKapust, Jackpot321, Jason Quinn, JdeJ, Jeffrey Mall, Jellonuts, Jenmoa, Jerdwyer, Jeremy Visser, JeremyA, JustN5:12, Kafziel, Kevin B12, Kintetsubuffalo, Kjetil r, Kuru, Liface,
Liftarn, Linkspamremover, LizardJr8, Llevanloc, Lommer, Lordmac, Lucozadejade, MMTbureau, Malcolmxl5, Mandarax, Marekting, Marketingcomet, Maurreen, Mcstubble, Melodymkt,
Millennialleaders, Monito, Mothball, Mr.Z-man.sock, Mydogategodshat, Myscrnnm, Natalie Erin, Nbarth, OMGsplosion, Ohnoitsjamie, Omegatron, Onewhale, Pacjac777, Panfakes,
Pchapmanny, PeteinBrum, PiemanTheGreat, Plinkit, Qrsdogg, R'n'B, Rich Farmbrough, Rickyrab, Ringbang, Rjanag, Rjwilmsi, Rkaminsky, Rmosler2100, Robofish, Ronz, Ruakh, Rugops,
Ryanscottlum, Ryeoman, Sbowers3, Scgtrp, SchfiftyThree, Shell Kinney, Simplyfabulous, Sir Vicious, Small business, SpamBilly, Stafix, Stafixltd, Starfounder, Stefanomione, Stifle,
SummerWithMorons, Sungamed, Svetovid, Swifty880, Tarma 2002, Thelmadatter, Themfromspace, Torsodog, Treybien, Tterrag, Tyw7, U664003803, Unight Party Community,
Usenetpostsdotcom, Versageek, VitHorky, Vzbs34, Wafulz, WantLess, Woohookitty, Yamamoto Ichiro, Zachary, Zachseamon, Zacplaysgames, Zanimum, Zzyzx11, 264 anonymous edits
Inbound marketing Source: Contributors: B2bmarketercanada, Barek, DShantz, ELNO Checking, Gamebuff2020, Giorgio-1970, John
of Reading, Kuru, Kusunose, Mbubel, Mcfred4us, Murphyjpatrick, Muta112, R'n'B, Smartse, Suzy.mosejczuk, Woz2, 13 anonymous edits
Influencer marketing Source: Contributors: Abdull, AllGloryToTheHypnotoad, Altzinn, Arbitrarily0, Beetstra, Chowbok, Colettew,
CultureDrone, Disperse, Duncanwbrown, Dylanfromthenorth, Elysonius, Excirial, IanMcKee, Ihcoyc, JForget, John of Reading, Kaerki, Kuru, Liketoshareinfo, MKawasaki, Mdtranhcm,
Mind123, Mmconti, Notedgrant, Nwoirhaye, Plinkit, Rick Wolfe, RonFredericks, Stefanomione, Tabletop, Tevaman, This lousy T-shirt, Todddufour, Unknown556, VladGenie, Wendyhwchen,
29 anonymous edits
Internet marketing Source: Contributors: 0800steve, [email protected], A. B., Aapo Laitinen, Abune, Adam00, Adashiel, Adraeus, Adrianmoran,
Ageekgal, Aggieuk, Agraff91687, Alansohn, Albeiror24, Alexius08, Alfredlargange, Allenc28, Alphalphanator1, Alwaysepic, Amakuru, Amilator, AndrePitie, Angie.mawhinney, Anna Lincoln,
Article Sources and Contributors
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Knight UK, Blackstallion7, Blahbloodyblah, Blakagick, Blakex, BlogInsider, Bobby9101, Bonadea, Bongwarrior, Boston2austin, Bparker03, BrandenWiki, Brokenlinks, Bsadowski1, Bsearched,
Bunny2143, Business Marketing, C45207, CQJ, Caleonard, Calgladyng, Caliche52, Can't sleep, clown will eat me, Canjimifan, Capricorn42, Cariocadagema, Caseyzeman, Catgut, Cendyn,
Chasingsol, Ckatz, Cleverclick, Closedmouth, Clpo13, CohibAA, Coldmachine, Comodo, ConcernedVancouverite, Continuumstrategies, Coren, Corvus cornix, Cosmic spanner, CrystalND,
Cumbrowski, Cynergistics, D-solmedia, DARTH SIDIOUS 2, DS5000, DVdm, Damicatz, Dan Jaslanek, Dancter, Daniel Case, Danlev, DarrenOP, Daverocks, David Shay, DavidWBrooks,
Davidequah, Dbruggeman, Dcastlebeck, Ddelapi, Deli nk, Delicious carbuncle, Delpino, Demunz, Dgrebow, Dimionix, Dinhlanh, Discospinster, Dissolve, DoubleBlue, Dpanov, Dporter12,
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Elektrik Shoos, Eliasdabbas, EnJx, Enlistforpeaceorg, Entailmedia, Entropy, Epbr123, Epp, Erianna, Euforic, Everlonglp3, Excirial, Fabricationary, Fakir005, FatalError, FelixWriter,
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Jcwilliam, Jdpugsle, Jeff G., Jeffrey Scott Maxwell, Jehochman, Jemary, Jeorge48, Jeronim, Jewish knowledge, Jlaque, Jll, Jmuscel, Johnuniq, Jonas Angerfors, JonathanBentz, Josec87,
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Natalietrenlay, NathanoNL, Netalarm, Nick123, Niduzzi, Nmarketers1, Nuradu, Nuttycoconut, Nwekwerth, Oberstpac, Oceansofeden, Ohnoitsjamie, Oicumayberight, Onlinemarketingblog,
Onlinemg81, Orlady, Orphan Wiki, Osmanseo, Oxymoron83, Panfakes, Pangaconsultant, Patwitta, Perfecto, Peridon, Person708, Peterkoning, Peteurden, Phgao, Philip Trueman, PhilipO,
Phillsmith, Phinicky, Photographerguy, Piano non troppo, PieRRoMaN, Pjd1557, Plinkit, Prongo, Psharma1720, Pstril, Rabend, Radagast83, Ragu gnana, RainbowLizard, Raithesoft, Rajiv
chandra, Rasmus Faber, Raul guerridos, Razorflame, Rebecca, Rebeccaeskin, RedLinks, RexNL, Rhobite, Rich Farmbrough, Rickburnes, Ripepette, Rjcain, Rjd170, Rjwilmsi, Romesaranto,
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Sawran, ScottyWZ, Seahorseruler, Seankenalty, Seaphoto, Searchguru, Seba756, Sedpower t3, Seo85, Seohutt, Seotraf, Sesu Prime, Seventyroshan, Sgtjocko, Shadowjams, Shane3x,
Simon121981, SimonP, SiobhanHansa, Siobhanwiki, Sivasankar1984, Skwush, Slakr, Smashville, Smb-marketing-seo, Snowflys, Snowolf, Softwareklinic, Sonwanari, Soulja90, Spanth,
St.daniel, Starizing, Startist777, Stefanomione, Stephaniesundheimer, Stepho123, Stepshep, Steve Bradshaw, Stevenwagner, Stoltingmediagroup, Strayan, Strongsauce, SunschWeb, SusanLesch,
Synergyreferral, Syrthiss, TastyPoutine, Tbhotch, Teapotgeorge, Techxpertssolutions, Teles, Tellyaddict, Thadius856AWB, TheKMan, Theincredibleulyses, Theopapada, Thewikipopo, Thingg,
ThoughtLava, Throwaway85, Tim Q. Wells, TimothyTMLim, Tommy2010, Tomowens1, Trafficpayouts, Tregoweth, Turaab, TuzelMA9903, Twintower, Twister89, Tyrol5, UnivesityofOttawa,
Unknown1x, Veinor, Velella, Versageek, Vertical Dominiation, Verticaljump, Vicshippers, Vince1990, Vitavee, Walkingbear, Waseem0755, Wavelength, Wayne Riddock, WeatherFug,
WebRank, Websitemoneynow, Webspider20, Whale plane, Wikitonic, Willadams11, Willyboy104, Windchaser, Wiretse, Woz2, Wrs1864, Wrttnwrd, Wtmitchell, Wuhwuzdat, Xania, Ydriuf,
Zaggernaut, Zalgo, Zedla, ZimZalaBim, Zizon, Zzuuzz, 822 anonymous edits
Kaspid Source: Contributors: Ahmad87, Amir.marvi, Ben Ben, CottrellS, Hasteur, Reedy
Loyalty marketing Source: Contributors: Annette Rogers, Anti I A, Babedacus, BusinessAssyst, Ckatz, Closedmouth, Colonies Chris,
Delirium, Elaragirl, Eliumpd, Fairsing, Gioto, Gogo Dodo, Ivansanchez, Jeffrey Scott Maxwell, Jennyrexp, Kenkrahe, Lambiam, Luckyz, Macmcfarlane, Murtoa, Plinkit, Qqqqqq, Reinyday,
Rgbarlow, Seymour3456, Stefanomione, Tedd, Tedder, Vicky Ng, Woohookitty, Zzuuzz, 25 anonymous edits
Marketing communications Source: Contributors: A. B., Adraeus, Andyjsmith, Atauder, Babrinton, Bdubois, Bonadea, Boson, Can't
sleep, clown will eat me, Caravaca, Chris j wood, ContBur, Dbielawa, Dpr, Ehheh, Eskim5, Evil saltine, Feraya, Funandtrvl, GTBacchus, Gabriel.zhou, Gilliam, Goldenrowley, GraemeL,
Graham87, Gscshoyru, Imperial Monarch, Itcousin, Jazzcat2283, Jbuddle, John, Juristiltins, Just plain Bill, KnightRider, Liface, Logan, Maurreen, Meisele, Mindmatrix, Mortstiff, MrOllie,
Mydogategodshat, Norfrode, OMathelot, Ojaars, PRNWilkinson, Plinkit, Plomion, Ppsassociates, Pxyy78, Rardell, Recovering English Major, Robbo1254, Santryl, Sarper, Spinacia, Spitfire,
Stephenginns, Swtechwr, TalibDemashqi, Texasbbq, TimGoodyer, Tizio, Unclefeet, WikHead, Woohookitty, Woz2, Zeebah360, 64 anonymous edits
Megamarketing Source: Contributors: Agnte, Crzrussian, Drbreznjev, Gerry Ashton, Mxcatania, Stefanomione, Stonefree43,
TheoClarke, Twangca, 6 anonymous edits
Multi-level marketing Source: Contributors: *drew, 10kmoneydoctor, [email protected], 4liferesearch, AED, Abberley2, AbsolutDan, AcaiAnswer,, Adahtaylor, Adamniceguy, Agateller, Alan Liefting, Altenmann, Ancos, AndreasB SE, Andrew Rodland, Anetode, Anisanis, Anu-43, Anubhavklal, Apoc2400, Areaseven,
ArglebargleIV, Argyriou, Arthur Rubin, AxelBoldt, B47, Bardbtlb, Barek, Barrylb, Beltwing, Benjaminkee, Betacommand, Bluegnome, Bo Jones, Bobo192, Borkificator, BrightBlackHeaven,
Britcom, BruceGrubb, Bubba73, Buekerc1, C.Fred, CIreland, Can't sleep, clown will eat me, Capedia, Capturebox, Carina22, Carnesc, Chatfecter, Chzz, Cleon7177, Codehydro, Conversion
script, CrestedEagle, Cvaneg, DMacks, Daniel mlm, Danielpremier, David D., David Rolek, DavidLevinson, Deatonjr, Dejvid, Delirium, Dexs, Dhollings, Discospinster, Djglove, Dnadreamteam,
Dodo bird, Donnyg16, DougHill, DrewP, Drpibb81, E. Ripley, ESkog, EarlGrey, Earthsound, Economiccrimesunit, Ed Poor, Editor2020, Eduardo Antico, Elkman, Enidhi, Enric Naval,
Enviroboy, Erc, Erianna, Eslima5, Euphrosyne, FOM.Research, Falcon8765, Fangz, Fifelfoo, Flowanda, Forseti, Fredsmith2, Fuelsaver69, Fuzheado, GCarty, Ghosts&empties, Gil ong81,
Gilliam, Glane23, Glvr, Gogo Dodo, Good day america, Grackle, GraemeL, Gwandoya, Haakon, Hadal, HaeB, Handtrembler, Henning Makholm, Hetar, Heycam, Husond, ID89172354, Iames,
Icerat, Idutms, Ignoranteconomist, Igrogo, Ihcoyc, Indon, Infoleague, Integralexplora, Intelligentplan, Isotope23, Itohacs, J.delanoy, JALockhart, Jacobwh, Jagged 85, Jalinoos, Jarrad Lewis,
Jaysonguru, Jj137, John Nevard, John254, JohnDoe0007, Johnnybpinedajr, Johnscottkeller, Joyous!, Jpaige, Jpaw, Karl-Henner, Kawaputra, Keronjob, Kinu, Kirill Lokshin, Knverma, Konstable,
Kurttasche, Kuru, Kzzl, LOL, Lagalag, Lahanks, Lamdk, Larry_Sanger, Launchingrv, Lee Daniel Crocker, Leef5, Levineps, Liftarn, Lisasmorgan, Livitup, Lordmwesh, Lothe2, MChiBro,
MRSC, Mackverma, Mangojuice, ManuP, Mark12244, Mark3312, MattKelley, Maxal, Maxwhr, Mayalld, Medic, Mennonot, Mephistophelian, Mereda, Merger101, MikeTieson, MikeWazowski,
Minghong, Mkauffsu, Mlmleads, Mr. Stradivarius, MrOllie, Mrcolj, Mydogategodshat, Myvisionuk, NGSRizzen, Nakon, Navitatl, Ndesigns, Neil916, Neo2256, Networkmarketing101,
Networkmarketingindia, NeuronExMachina, Nguyen Thanh Quang, Nickkkhudson, Nicolas1981, Niklas Winde, Ninja247, Nirvana2013, Nishkid64, Nismerf, Nkthen, Nmarketers, Norfolkisland,
Nsaa, Nubin wiki, Numbo3, Nummymuffin, ONEder Boy, Obadaj1, Octahedron80, Ohnoitsjamie, Olivier, Omdeepak, Orjanlothe, Oscar90328, Ozedavid888, Pankaj.multimedia, Pat Lu, Paul A,
Pedant17, Perfecto, Peterday448, Pharaoh of the Wizards, Pinar, Pjacobi, Playclever, Plinkit, Poitin, Prhartcom, Ptdecker, RachinSharma, Radicalsubversiv, Rajnish15sep, Ralftom, RazorICE,
Realmlmtraining, RedRabbit1983, Redvers, Reptilian Humanoid, Rextech, Rfl, Rg1999, Rgoodermote, Rhode Island Red, Rjwilmsi, Robertsjameswusa, Rodasmith, Roggy37, Romanm,
Ronmauldin, Ronz, Ruthlessal, SDC, SYTYCSM, Sakuraz, Salgueiro, San taunk, Saphoroth, Satori Son, Saxon1996, Schnazola, SchuminWeb, Sepehrnoush, Sheckybaby, Shot info, Skysmith,
Slawojarek, Sok, Sophbish, Sophillydave, Specious, Spoonriver, SpyMagician, Sriram5u, Starblind, Stefanomione, Steve Dufour, Steve1776, Stonefree43, Subramohan, Sunny256, Susvolans,
Szyslak, TER123, THE KING, THe dog trainer, Tbone, Teamachieve, Ted87, Tedickey, TenOfAllTrades, Tezzjb, The Mad Bomber, TheNewPhobia, TigerShark, Tnmm, Toddst1, Tom harrison,
TomerS1, TonyRush, Tregoweth, Trident13, Tristan.buckmaster, True manna, Tuckeg01, Tuttuttuttle, Twas Now, Tyneal, Unclearvide, UninvitedCompany, Utahcreative, Vdavid23, Vejeestu,
Veledan, Versageek, Vishalhkd, Vtvita, Walloon, Warhawk28, Waxyzer, Weatherdude99, Weregerbil, WhatamIdoing, Wikipelli, Wildjano, Wilmer55, Wizardman, Womansworld, Woohookitty,
Wordwright, Wrengroup51, Xiner, Xynopsis, Xziex Liquid, Zariane, Zigmar, Zummie, Zz414, Zzuuzz, 669 anonymous edits
Nano-campaigning Source: Contributors: Kumioko, PigFlu Oink, REOTtelescope, Radiant chains
Next best action marketing Source: Contributors: Bilby, BounceG, Rcawsey, Rob f walker, Sgt Pikachu5, Soap, Woz2, 7 anonymous
Permission marketing Source: Contributors: AN(Ger), Aquilina, Ashton1983, Bernd in Japan, Bridgesb, Cmdrjameson, Dave Biskner,
Edward, Fairsing, Grochim, Jane McCann, King of Hearts, Liface, Malcolmxl5, Maurreen, Mind flux, Muhends, Mydogategodshat, Pablo X, Pankajkumar1985, PaulKishimoto, Rdrozd,
Rjwilmsi, Sean D Martin, SiobhanHansa, Snakewiki, Spudtater, Stefanomione, Stifle, Tabrez, Unm487, Vodnokon4e, Webconomist, Whpq, Wiki World, Woz2, X42bn6, Zzuuzz, 34 anonymous
Proximity marketing Source: Contributors: 2cievents, Alansohn, Alekseyr, Alexr14, Amyleesak, Andrea.demarsi, Artaxiad, BareBrands,
Bluetise, Bluetooth-marketing, Bugirt31, Dekisugi, Eracer, Eventgirl, Genciamedia, Gi011d1584, Greebowarrior, Gtricker, Hitchmedia, Intgr, LeaveSleaves, Manuelnaranjo, Mboverload,
Mediaguys, Michael Hardy, MrOllie, Mykdzn, Nagle, OhioTrivium, Ohnoitsjamie, Orangemike, PalmaGhost, Pinecar, Proximitia, Rich Farmbrough, Richard Taylor, Shalom Yechiel, Sinaerem,
Stefanomione, TastyPoutine, Textblue, Vegaswikian, Winesouvenir, Wknight94, Yaric om, Zzuuzz, 172 anonymous edits
Reality marketing Source: Contributors: Ameliorate!, Dave6, GraemeL, J Milburn, LEricius, MER-C, Needles27, Raeven0,
Stefanomione, Will Beback Auto, 4 anonymous edits
Relationship marketing Source: Contributors: Alansohn, Alexlockhart, Avaragado, Bryanbgsu, BusinessAssyst, Ckatz, CliffC,
Cmdrjameson, Coast123, Cora potgieter, DShantz, DanielHerndon, Daveberstein, David Eppstein, Davidm2ww, Dballantyne, Dilianangelov, Donley, Duncanwbrown, Edward, Edward321,
Article Sources and Contributors
Egyptianholiday, EpicenterX, Escape Orbit, Everyking, Fabiv, Fairsing, Gaius Cornelius, Gilliam, Gioto, Glenn.isaac, Hess411, Howardjp, Ibagli, Inka 888, Insanephantom, JCraw, JdeJ, Jgritz,
Jlao04, Kaelinsoc, Kateaclysmic, Kateshortforbob, Liface, LilHelpa, Luna Santin, Marketingtom, Maurreen, Mboverload, Mike Rosoft, MrOllie, Mydogategodshat, NeilN, Nlu, Nutcracker,
Ohnoitsjamie, Oli Filth, Phauly, Plinkit, Poweroid, Prodego, R'n'B, Regibox, Return Business, RexNL, Rjwilmsi, Ronz, S.K., Sam Hocevar, Shanes, SpaceFlight89, SpikeToronto, Stefanomione,
SuperHamster, Syakoban, The TriZ, UncleDouggie, Veinor, Wenli, Wiki.machli, Yahya Abdal-Aziz, Yamla, Zzuuzz, 186 anonymous edits
Shopper marketing Source: Contributors: Akeskita, CHIPHOYT, Culmensis, Edward, Engage1, Gregmurtagh, Hu12, Jordgubbe,
Kroschka Ru, Kuru, Oddharmonic, Shopperexpert, Shoppermarketingmaster, Stanleyyork, Tenmei, Timkitchin, Toby Desforges, WikHead, 17 anonymous edits
Undercover marketing Source: Contributors: Alexius08, Angela, Betsythedevine, Bfinn, Bmicomp, CCRoxtar, Ciphergoth, Clock88,
Dysprosia, Edgar181, Furrykef, Gadfium, Ggonnell, GraemeL, HistoryBA, Holybrew, I already forgot, IMarketingGuru, Irishguy, Isogolem, Jeffrey Henning, Jetboy212, JoaoRicardo, Joyous!,
Khalid hassani, MMTbureau, Maurreen, Mirfan2, Mydogategodshat, NawlinWiki, Omegatron, Populus, Rachel Cakes, Reddi, Redrkr, Rjwilmsi, ST47, Shawnhath, Simetrical, Stefanomione,
Superm401, Synchronism, Tim Starling, Tomas e, Video game fan11, 66 anonymous edits
Image Sources, Licenses and Contributors
Image Sources, Licenses and Contributors
File:Guangzhou-electronic-components-shop-0479.jpg Source: License: Creative Commons
Attribution-ShareAlike 3.0 Unported Contributors: User:Vmenkov
File:Preisschild Modernes Antiquariat.png Source: License: Public Domain Contributors: Myself
Image:Junk mail collection.jpg Source: License: GNU Free Documentation License Contributors: Pretzelpaws
Image:Influencer Roles.jpg Source: License: Attribution Contributors: Duncanwbrown (talk)
File:Kaspid logo.png Source: License: Public Domain Contributors: Amir.marvi at en.wikipedia
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