Marketing a Market Follower Is Term Paper
- Length: 6 pages
- Sources: 5
- Subject: Business - Advertising
- Type: Term Paper
- Paper: #12260137
Excerpt from Term Paper :
The internet has given marketers a great deal of flexibility of time and message, though it must be clear that contrary to the previous assumptions there are limits to advertising ability and revenue. The tool enters the individuals home, just as direct marketing does and often offers links to direct purchase of the product advertised. Television, also enters the consumers home, and offers product information and brand exposure. Radio is often a mode of marketing that is accessed in transit, where millions of people listen to the radio as they drive and remember products, services and events that they hear about on the radio. Word of mouth marketing is important as it provides a personal touch to the product or service as testimonial can be the key to product awareness and utilization. (Ryans, 1996, p. 63)
8. Old statistics with regard to advertising to sales ratios, 10 years ago being something like 60:40, and currently more like 75 has many reasons. One of the most significant reasons is overall growth of direct competition. As competition becomes more fierce and prices are driven lower the organization must begin to spend more on advertising to meet the needs of sales increases. Sales promotion is also more important today as many companies have expanded to intensive distribution and so many products are then available at multiple locations. Often times products vary, little in ability to provide satisfaction and provide the product service the consumer wants. (Lowry, 2000, p. 22) an additional change has occurred do to the shift from manufacturing to service economy, as there is much more need for promotion in service industries than in retail industries, as exposure is often limited to self exposure, or consumer seeking out the service than in the retail industries where products are directly accessible, even when the consumer is not looking for them. In the service industry, marketing of every mode is essential, as the consumer may be unaware of the variety or type of service if the promotion is not vocal, consumers may not even be aware that the service is available or needed if they have historically done the service independently.
9. Direct marketing has grown exponentially in the current marketing system of this nation as many direct technologies are now available that were not available in the past. Almost the entire nation now has a home telephone, and many have cellular phones, where this was not the case in the past, additionally those tow resources are more accessible to the marketer because the technology to build direct marketing databases is much more accessible, multiple and non-cost prohibitive. Additionally direct marketing online has also grown exponentially, where for a relatively low-cost a marketer can reach the consumer through email or pop-up ads. Direct mail has also benefited from growth as it is much more user friendly, with packages that have low predetermined costs and printing technology capabilities that meet even small business needs. Finding the right balance for the product or service can be difficult, as so many more options are available today than were previously, but direct marketing will likely become an even larger aspect of marketing than it has been in the past as it seeks to find consumers with direct interest in the product or service that the provider has.
Geller, 2002, p. null03)
10. Foreign market growth is one of the biggest issues in business today and many even small and medium sized companies often direct resources toward finding and establishing foreign market locations in the increasingly global economy. There are several risks involved with entering a foreign market and at least three are, non-existent or low consumer demand for product, competition of local market and lastly legal and ethical issues that determine the market situation. Some demand situations are unknown until a service or product has been exposed to a foreign market, and historical consumer desires must be discovered before entrance, sometimes this is difficult as if a consumer is unaware of a product they do not know if they would buy it or use it, they may have historical and traditional desires to utilize existing market products and not care to try something new, in which case a risk would be great. Competition in local markets is often a risk that a foreign company must weigh as there are often similar products and services available on a local scale that have a market hold, without proper information and/or research a risk could be great for product not fitting in to an existing market, because local providers already serve the niche. Lastly, legal issues are often unknown to the foreign provider, as some communities are more or less controlled by government entities, through non-free market set ups. Without such information the foreign provider takes great risk in having his goods and/or services sanctioned,…