Marketing Planning - LBI23: Chapter 12: Introduction New Market Offering

Marketing Planning - LBI23: Chapter 12: Introduction New Market Offering: LATERAL MARKETING  Introducing new market offerings involves the process of developing and launching new products or services to meet the ne...

Marketing Planning - LBI23: Chapter 2 : Developing market plan

Marketing Planning - LBI23: Chapter 2 : Developing market plan: As against the old era where the main focus is on selling what the company produces, the new economy is mainly about Marketing where custome...

Marketing Planning - LBI23: Chapter 11 : Designing and Managing Integrated Mar...

Marketing Planning - LBI23: Chapter 11 : Designing and Managing Integrated Mar...:   MARKETING CHANNEL STRATEGIES When you you own a traditional brick and mortar retail store in an out of town location, with the help of  e-...

Chapter 12: Introduction New Market Offering

LATERAL MARKETING 

Introducing new market offerings involves the process of developing and launching new products or services to meet the needs and preferences of customers.

In most cases, some already existing products may combine to give one offering which comes out as a new package is know as lateral marketing. Lateral marketing is an firm of marketing where two brands with complimentary products or services come together to form a competitive advantage in the market. Most likely ideas are : 

1. Airline company and Airbnb. 

2. Health providers and health insurance

3. Mobile companies and Internet service providers.

4. Car brands and tyre companies 

5. Gas station and mechanic workshop

For the airline companies and Airbnb, when you fly to a new place one will need a place to stay, both complements each other. This increase the visibility of both brands and develop new customer reach.

Benefits of this type of lateral marketing includes :

1. Brand visibility

2. Reduced cost

3. More customer reach

4. Increased sales

5. More sales

6. Enhanced customer loyalty

7. Competitive advantage 

References: Ilias Avgeropoulos(2004) Marketing Planning power point , Kotler (2000) Marketing Management, Philip Kotler and Fernando Trias (2003) Lateral Marketing

Chapter 11 : Designing and Managing Integrated Marketing Channels

 MARKETING CHANNEL STRATEGIES

When you you own a traditional brick and mortar retail store in an out of town location, with the help of  e-commerce presence you apply the Pull channel strategy. The Pull strategy involves bringing the customer to where you are or to your product.

The Internet avails to producers a large pool of customers,If you have a new brand or your business is a start-up, pull marketing is your go-to choice to increase brand awareness and build a reputation. You can achieve a higher level of engagement with pull marketing because of its broader approach. 

In the Pull marketing strategy, the producers run marketing campaigns directly to the consumers online through SEO, social media, content marketing and advertising. The consumers compares and make choices online then go  to the retailers in search of the product. The Pull strategy aims to create customer loyalty. You will notice that over time the customers will come to the out of town location to find their product of choice.

HOW DO YOU COMPETE WITH LARGE RETAILERS

With e-commerce, it's possible for small companies to compete with large companies and to take on an altogether different personality if they so choose.

By operating online, being active on social networks and taking steps to raise brand awareness, they can present themselves as bigger. A company may be located out of town but by using the web, they can reach consumers anywhere.

Your blog, social media or web page  should have good user experience (UX) and allow the user to move seamlessly between channels, so they can order online for same-day store pick-up or interact with you via app.

In conclusion, your location or size does not matter when you have an online presence. E commerce has given small businesses a leverage to compete with big firms through the Pull marketing strategy. The retail shop makes the consumers come looking for their products of choice.

References: Ilias Avgeropoulos(2004) Marketing Planning power point , Kotler (2000) Marketing Management 

Chapter 10: Managing Retailing, Wholesaling and Logistics

 TRENDS SHAPING THE FUTURE OF SEAMLESS SHOPPING.

• Flexible ordering and pick-ups

With the current busy  and hectic programme of customers, flexible ordering and pick-up is beneficiary to the customers. These services offer convenience, flexibility and made to suit our everyday life. Getting groceries, running errands, ordering and pick-ups offer a hassle free experience. 

There are lots of benefits accrued from flexible ordering and pick-ups. They include:

• It saves time
• Saves money
• It's safer
• Helps people with mobility issues and disabilities
• Saying goodbye to staying in queues 
• Customized service 

Bottom line 

Ordering and pick-ups is actually a trend that has great benefits for the consumers ranging from flexibility, convenience, time saving etc. They are now the table stakes.

References: Ilias Avgeropoulos(2004) Marketing Planning power point , Kotler (2000) Marketing Management, James Durkin(2022) Good and Bad Marketing . Soren Kaplan (2018) Future Watch Report 

Chapter 9: Developing Pricing Strategies and Programs

 CONSUMERS PSYCHOLOGY AND PRICING 

Price is what a good or service is sold for. It is one of the marketing mix that produces revenue while the others produces cost. Pricing isn’t always as easy as setting a price the brand hopes to get back. It involves aspects such as demand and supply, cost of the product, its perception and value for the customer etc. 

A consumer will know if a price is too high, too low or on point based on previous experiences, from advertisement, from brochures, information from family and friends. Purchase decisions are made based on customers perception of the product's value.

By employing psychology, a brand may present a perception of discount or value using the "left digit effect". Making prices end in decimals give the consumers the idea that the price is affordable rather than it ending in whole numbers. €4.99 is seen as cheaper than €5

When a price is relatively lower than it's competitors, the good is seen as inferior or less quality. That's why brands should fix the price of a good in reference to other competitors.

Using celebrities and influencers to market a product gives consumers the perception that the product is of great value that's why a famous person is using it.

Another way psychology can influence pricing is by offering free products with purchase. It makes the consumer believe he is saving.

Setting a time frame to sell of products creates a rush for the product. It gives the idea that the availability of the product is limited.

Price-quality interference is when consumers use price as an indicator of quality for ego-sensitive products like clothes and perfume. The may actually worth less but because of the product being a symbol of luxury, more is paid.

Luxury products should not be discounted. These products are often seen as symbols of luxury and of superior quality. Also, by paying a premium price, have the idea that they belong to an elite group. Discounting such products may reduce the perception of value.

In summary, Pricing psychology is important to understand how people make purchases. A brand must understand the psychology of its customers to optimize profits, enhance customer's satisfaction and give consumers the sense of  value and exclusivity.

References: Ilias Avgeropoulos(2004) Marketing Planning power point , Kotler (2000) Marketing Management,Pricing Research Lab Sciative(2003) The Psychology of Pricing: How Consumer Behavior Shapes Pricing Strategies