Difference between Need, Want & Demand | PRINCIPLES OF MARKETING

 Difference between Need, Want & Demand

The main idea of ​​marketing is need, Want and demand. Although interrelated, there are several gaps between them. The following is the gap between demand, shortage and demand -

 

1. Definition:

Needs are states of felt deprivation

Wants are the form human needs take as shaped by culture and individual

Demands are human wants that are backed by buying power.

2. Stage:

Mental level is needed

Lack of urine level

Here people feel the demand for specific products.

3. Sequence:

The person first feels the need

Lack occurs after feeling the need

In the last stage, scarcity becomes demand.

 

4. Involvement:

Relation to the individual's own social status

Relationships with one's own culture and personality

Relationship with product purchase interest, purchasing power and cost

 

5. Example:

Food, clothing, love,

Rice, fast food, clothes,

Rice, fast food, clothes that can be purchased.

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Core Concepts Of Marketing | Principles Of Marketing

Marketing is a common and executive course whereby persons and groups gain what they must desire during create and exchange goods and assessment by way of others.

1) Need, wants and demands:

Needs: Person needs are states of felt scarcity. Human needs are many ways.

1. Social needs, 
2. physical needs, 
3. personal needs.

Wants: Wants are the type being needs attainas formed by society and being role. Wants are the form human needs take as shaped by culture and individual personality. Bangladeshi people eat the like food, rice, fish, vegetable, ladies finger etc. But America people choose then fast-food, Thai soup, sandwich and more items.

Demands: Demands are person wants that are backed by selling rule.There must be three conditions for any deficit to be demand -

1. Must have the desire to fill the gap
2. Must have the necessary money
3. Must have the desire to spend money

2) Target markets, positioning and segmentation:

Target Market: Target market is the piece of the skilled on hand  marketplace the grouping decides to track.

Positioning: Positioning is the take action of deceitful the company’s donation and icon to take up a typical place in the intelligence of the target market.

Market Segmentation: Market segmentation is separating a marketplace hooked on slighter groups of buyers by way of separate requirements, personality or manners who may oblige part goods or marketing mixes.

3) Marketing offers and brands: 

Marketing offer is some grouping of goods, services, in order, or experiences offered to a market to induce a need or want.


Products: A product is everything that is able to be accessible to a market to please a desire or require.

Experiences: Experience is facts or ability which is obtained commencing responsibility, seeing, or felling effects.

Services: Service is any perform or show to facilitate one party can offer to another that is basically insubstantial and does not result in the possession of everything.

Brands: Brand is a person's name, idiom, mark, figure, or drawing, or a recipe of them, planned to cover the commodities or services of one supplier or set of sellers and to make a distinction them from those of competitor.

4) Value & Satisfaction:

Value: Customer value is the difference between the values the customer gains from owing and using a product and the costs of obtaining the product.


            Benefits     Functional Benefits + Emotional Benefits
Value = ---------- =  ------------------------------------------------------------------------------------
             Costs         Monetary Costs + Time Costs + Energy Costs + Psychic Costs



Satisfaction: Satisfaction is a individual’s feelings of wish or displeasure resulting from linking a creation’s supposed act in qualified to his or her confidences.

5) Exchange, transactions and relationships:

Exchange: Exchange is the method of finding a wanted produce from someone by contribution approximately in yield.Exchange is the act of obtaining a desired object from someone by offering something in return.


Transactions: A transaction entails of an occupation of values among two get-togethers.


Relationship Marketing: Relationship marketing is the method of making, keeping and pretty robust, value-laden associations with clients and additional sponsors.

6) Marketing Channels: 

Marketing channels are groups of inter-reliant societies complicated in the development of building a product or facility existing for use or intake.

1. Statement Channels
2. Delivery Channels
3. Package Channels

7) Supply Chain: 

The supply chain defines a longer network extending from raw things to machineries to final products that are supported to final consumers.

8) Competition: 

Competition contains the entire real and possible challenging donation and alternates that a customer might deliberate.

9) Marketing Environment:

 Marketing environment is the create commission environment and comprehensive environment.

10) Marketing Planning : 

Marketing planning includes conclusive on marketing policies that will help the firm attain its global planned ideas.

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Characteristics Of Marketing | Principles Of Marketing |

Marketing is a total system of business activities designed to plan,price,promote and distribute want satisfying products to target markets to achieve organizational objectives. Impotence characteristics of  Marketing is below :

1. Social Process :

 By marketing, people's social needs are met. For this reason, the importance of consumer satisfaction and the welfare of the people of society is given the highest importance in all marketing activities.

2.Managerial Process : 

There are several Managerial Processes in different marketing areas. Managerial processes play a very important role in many programs, such as new product development, scheduling distribution, pricing and promotional decisions, formulating policies.

3. Process Of Creating Utility :

 Among the utilities in the economy are significant - customary, proprietary, spatial, timely and serviceable.Marking  is the creation of place,time and possession utilities.

4.Exchange Process : 

One of the fundamental aspects of marketing is the exchange by which the needs and needs of the consumer are satisfied. Through the process of exchange, mutual lack of buyers and marketers is met.

5.Consumer Orientation Process :

 All marketing practices are directed to consumers. Because modern marketers think "consumer is the king". Through this, consumers try to identify the needs, needs and needs of the customer in a realistic manner.

6.Process Of Earning Profit : 

The main goal of every organization is to make a profit. Marketers make profit by providing maximum satisfaction to consumers. Marketing is the customer satisfaction at a profit

7.Improvement Of Standard Of Living : 

New products and services are provided through marketing, which improves the quality of life of people through consumption or consumption. Marketing is the standard of living for society.

8. After Sales Services :

 In some products such as cars, ACs, TVs, refrigerators, etc., some services are provided to the consumer. Such as - Home Delivery, Warranty, Guarantee etc.

9.Communication Process : 

Through marketing, various parties - such as buyers, consumers, intermediaries, producers, etc. interact. It exchanges information and feelings with them.

10. Marketing Stars Before Production :

 Marketing begins before the production of the product. The product is designed and developed according to the consumer's interests, preferences, needs, etc.

 

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Top 10 Trends in International Online Marketing for 2019

Artificial intelligence (AI) and chatbots rank among the top 10 trends in digital marketing this year, said an industry expert, noting that the trends will help one be ready for challenges awaiting one’s business in 2019.

1. Artificial Intelligence:

With everybody talking about AI, don’t be afraid AI will take over the world. But for sure it may have significant impact on your business sooner or later. Mechanisms will be helpful in analyzing your consumers’ behaviour and their search patterns. Making the most out of it, utilizing data from social media platforms and blog posts, you’ll be able to track customer journey and understand how your users and are looking for desired products and services. All this may lead straightforward to better understanding of your customers (by 30 per cent) and more effective performance of your content (15 per cent).

2. Chatbots:

This AI-based technology can be considered as your virtual concierge, instantly communicating with your users and assisting in completing their goals with immediate answers, messaging in real-time, 24/7 chat. As research shows 90 per cent of their answers are correct, their quality and detailed approach are highly appreciated. Allowing for multi-channel consistency and knowledge centralization, they are getting more and more appreciated, especially in the Gulf region, where not everybody can understand your Call Center employees. No wonder they are becoming so popular. With 1.4 billion people interacting with chatbots worldwide, 80 per cent of savvy businesses are already using or plan to use chatbots by 2020. And by 2022, chatbots will help businesses save over $8 billion per annum, especially in the banking and healthcare industries. Adding up to it the fact, that companies using such solution are perceived as innovative, it’s a simple must have of the season.

3. Programmatic Advertising:

Going shopping is always exciting, especially when somebody else is paying. But in every other occasion your cost should be reasonably calculated, and each saving will be highly appreciated. Therefore, act like a pro with programmatic advertising, which will make your campaigns more cost-effective. An automated bidding on advertising inventory in real time is a perfect opportunity to show an ad to a specific customer and in desired context. Nowadays 84 per cent of brands and marketing agencies buy display advertisement in such manner and almost two thirds do the same for their mobile campaigns. With reduced budgets and impressions wastage decreased by 30 per cent, it ensures operational efficiency as well, both from buyers’ and sellers’ perspective. No wonder, with increased targeting effectiveness up to 85 per cent indicated by ad agencies, programmatic marketing will be the best supporter in planning your marketing budget for 2019.

4. Voice search:

Consumers appreciate now everything that makes their life easier, faster, hassle-free and enables data to be accessed on the go. Voice search is not about recalling the spirit of Christmas (with Kevin home alone campaign by Google) or showcasing amazing capacity of Google Duplex, presented by Sundar Pichai, booking a hairdresser appointment. It is about ease of making hands-free call, asking for directions, playing favourite song or checking for movie timings. Consumers consider it as quicker and easier, than going to a website or using app, while driving car making or simple “more fun” than other search methods. Worth considering is fact, that voice recognition devices really do matter in paid search and SEO. In US itself huge increase of solution adopters of voice enabled assistant devices is visible. Trending with 48 per cent annual growth increase in US, voice shopping will rise there to $40 billion per year in the next four years, as consumers warm up to making offscreen purchases. Have in mind, that 50 per cent of all searches will be voice searches by the year 2020. On the top of it – use of voice search can have few more advantages for your company – from improving your brand image, through being recommended by digital assistants and increasing your local relevance, up to reducing negative signals from your website, like bounce rate.

5. Augmented Reality & Virtual Reality:

With three available technologies: AR (Augmented Reality, enhancing physical objects with digital content), VR (Virtual Reality – completely simulated virtual 3D environment) and MR (Mixed Reality – combining the two by creating VR environment in which physically existing objects take part) are estimated to grow into a $95 billion market by 2025. The strongest demand for technology comes from creative economy industries: gaming, live events, video entertainment and retail, but wider applications in healthcare, education, the military and real estate are predicted over time. With very positive adoption rate (96 per cent in UK!) are very likely to become the third solid way in which people choose to shop. So-called Vcommerce (Virtual Commerce) will add value as supportive technology, defining true omnichannel experience. Seems like this solution is going to bring the trust gap of potential online shoppers – allowing almost to touch and feel products and subsequently build trust with the retailer. Therefore, apart from immersive experience of VR, supporting positive interaction with the brand and used for advertising purpose, research today opportunity of practical applications like virtual changing room (how useful for clothes, glasses, watches, right?) or digital assistants (make up, furniture fitting). Yes – future is here, now and you should not definitely miss it.

6. Content marketing & Personalization:

Seth Godin said that nowadays marketing is not about tuff that you make, but about the stories you tell. Indeed, we don’t buy anymore simple good or service, but go for brand promise and overall experience assured by storytelling. With words of Jay Baer – content is a fire; social media is gasoline. Therefore, content understood from perspective of superb copywriting, supported with great pictures, create only a basis for a tasty meal. The latter is going to be seasoned with proper spices: tailored-made offers supported with customized message. All combined with personalized emails, remarketing and improving techniques in measuring content effectiveness, will keep content marketing relevant and moving forward, triggering purchase motivations into desired action.

7. Video & video live:

Talking about content, another valid point needs to be taken into consideration – video (especially YouTube) as an essential for your company and Live Video as another important thing and “must have” of the season. It doesn’t mean Facebook videos are out of the picture. Just the opposite. Consider there your presence with live broadcast along with Instagram (especially if your target audience are youngsters in the Middle East) or LinkedIn. Video, unlike standard display ad, allows you to interact more with your audience – with importance of storytelling, creating tension, involving more senses. If you still are not fully convinced, let these numbers speak for you: 70 per cent of consumers say that they have shared a brand’s video and 52 per cent of consumers admitted, that watching product videos makes them more confident in online purchase decisions. But video is not for B2C only! 72 per cent of businesses claim video has improved their conversion rate, 65 per cent of executives visit the marketer’s website and 39 per cent call a vendor after viewing a video. I guess these numbers show the importance of incorporating video into your digital marketing strategy in 2019, right?

8. Micro-moments:

With modern customers’ attention span of a goldfish (3 seconds only!) are you often racking your brain for a catchy content, that will literally nail them down? It is time to shift your approach and instead of chasing them, simply do your job well and be ready for micro-moments. This concept, discovered by Google, is nowadays gaining importance. Each micro-moment is an intent-rich moment, when a person turns to a device to act on a need, driven by purchase, activity, location or knowledge lack. These four game-changing moments really matter for your business and the simple three things you need to do is to be there, be useful and be accountable. How it works? Imagine – she saw beautiful orange heels; he needs to repair a device; finding cooking too challenging they decide to go out; kids are doing their homework and need some guidance. Sounds familiar? To help all of them, simply in your digital footprint provide seamless experience relevant to consumer’s’ needs of the moment, anticipate these moments and create relevant insights across all channels. You may be surprised how often people may need your services, products or guidance, asking simple “how to” or expressing “I wish “ as their desire. Remember, early bird catches the worm!

9. Zero-party data economy:

2018 could be named after “year of trust lack”. Unfortunately, after Cambridge Analytica scandal and Mark Zuckerberg called for hearing, introduction of GDPR (General Data Protection Regulation) became another important threshold, starting new age of privacy. With marketers crying and weaning themselves off third-party data sets, a new day is dawning, with the shift to zero-party data. It is all the information intentionally shared by customer and never inferred. You can consider as such for example customers’ purchase intentions, filled preferences profiles, simply driven by willingness of improved personalization for products and services. Seems like this year will be marked with chase for privacy demand, supported at the same time with multiple requests to enable zero-party data driven offers.

10. Cyber threats and data privacy management:

We’ve already touch the base with GDPR regulation, necessitate unambiguous consent for data collection and compelling companies to erase individual data on request, with the threat of a fine of up to 4 per cent of their global annual turnover for breaches. No more cookies, data verification, database gathering and sending emails, unless permitted. You think you can sleep safe, as it only concerns EU? Not really. If you are UAE based company operating in Europe, having European customers, or simply advertising online to Europeans, you need to. But this shift means much more. Consumers are more aware of their rights, and it is always better to prevent, than cure. On the top of that one, you need to have in mind two trends. First is social media oversharing, second – too much rush, while working on digital transformation. Both may lead to data breach and negative consequences for your brand, therefore sensitizing your customers and working on enhanced awareness is advised.

Forrest Gump said “life is like a box of chocolate. You never know, what you’re gonna get.” According to it, you may not predict the future, but for sure these trends will help you to be ready for challenges awaiting your business in 2019.

   

Source :PACEDM

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Digital Marketing Strategy for 2018|Marketing Guide Line

What Is Your Digital Marketing Strategy for 2018

Make no mistake; in the modern business world, a huge portion of your marketing is going to be digital.

Consumers are flocking online to find the best deals while businesses continue to migrate over in order to meet their demands. You need to be able to reach those consumers if you have any hope of growing your business.

The problem is that this ever-changing landscape can get quite overwhelming. You already have a lot on your plate just running your business, so when you add in digital marketing, it can really wear on us.

Don’t panic! Here are some steps that you can take to make this much easier.

Develop Your Buyer Profile

This is the first step to creating any marketing strategy, including digital. You have to know who you are marketing to. The best strategies are built around a detailed buyer profile.

This profile will represent your ideal customer. Envision your ideal customer, put yourself in his/her shoes, and then write down exactly who they are. Your buyer profile should include details such as:

•Age: Even if you feel that it’s not important, I still recommend that you envision an age range just so that you can create an image of the ideal customer in your mind. Then find trends associated with that age group.

•Location: Web analytical tools like Google Analytics is a great way to identify the location of your website traffic. In most cases, you will be targeting your current audience. Location-based SEO is extremely powerful.

•Income: First of all, never ask your followers this question directly. Based on your niche, you should be able to research the income level of people who are going to be interested. With that said, this is important when pricing your new product or service.

•Job Title: You can gauge this from your current customer base. It might not even be relevant to your business.

I also recommend that you set up some surveys and questionnaires for social media. You can also include a post that asks a question and asks for a response in the comments.

Identify Your Goals

Your marketing goals need to be tied into your business goals. So, if you have a business goal of boosting revenue by 20%, then your digital marketing goal might be to improve your online lead generation by 50%. Whatever your goal might be, just remember that it should follow the SMART formula. The SMART formula states that a goal must be:

•Specific

•Measurable

•Attainable

•Realistic

•Timely

Specific and measurable are probably the two most important parts of a goal. It must be specific. Vague goals are not going to work.

If you noticed, we used a real number in our example above. Saying “I want to improve my online lead generation by 50%.” is much better than just saying “I want to improve my online lead generation.”

Goals must also be measurable. Otherwise, you have no way of knowing whether or not you are achieving them.

Choose Your Digital Marketing Channels

Once you have defined your target audience and set SMART goals, it’s time to choose the marketing channels that you’ll use to push your business.

Let’s look at the three main categories that you will have to choose from:

•Owned Media: These are channels that your business owns. Some examples include social media profiles, blogs, images, logos, and websites. You should always start by making sure these align with your marketing goals.

•Earned Media: Earned media is exposure that you have earned. Some examples are word of mouth advertising and customer experience. One of your goals should be to earn more exposure through customer reviews and having people share content through social media.

•Paid Media: Paid media is any form of advertising that you pay for. In most campaigns, you will use your paid media to funnel prospects to your owned media.

Gather all of your marketing material and organize it into a spreadsheet so that you can easily keep track of it.

Personalize Customers’ Digital Experience

In marketing, personalization wins big so customized emails are 26% more likely to be opened. The problem is that there are a lot of ways to make this work.

Some experts make customization sound much more complicated than it really is. What’s important is that you collect the right information right away. The rest is actually quite easy.

The truth is that so many marketers miss out on the powerful benefits of personalization because they have already started collecting email addresses but did not get all of the required information. However, it’s never too late to start.

• Create a plan and get your entire team on-board with your new strategy.

• Make sure the right fields are on your sign-up forms.

• Segment your lists (consider geography, gender, age, job title, company size, transactional data etc.)

• Start sending emails with personalized subject lines.

Use Chatbots to Engage Your Audience

The marketing world is in a constant state of flux. Today, we are starting to see a brand new trend that has gained a lot of popularity – known as Chat bots.

As companies continue to battle for customer support and retention, we see new, innovative methods of automation being brought to life.

Here are some of the reasons why you should include Chat bots as part of your digital marketing strategy:

• Mobile Optimization: Chat bots are designed with the mobile-first approach in mind so you won’t have to worry about having to jump through hoops to have them adapted to mobile devices.

• Consistent Social Media Marketing: By integrating Chat bots across your social media platforms, you will be able to keep all of your various social media campaigns updated consistently.

• Real-Time Updates: Chat bots are still in their earlier stages in development so they are going to see constant improvement over the next several years. That means you can expect real-time analysis and quick updates.

One of the most important benefits of digital marketing is that once you have developed a campaign, you can automate a large portion of it. So if you’re not automating, then you’re going to be several steps behind the competition.

Finally, developing a strategy will put you ahead of your competition. Did you know that 46% of businesses do not have a well-defined marketing strategy?

Don’t be a statistic. Be a success story! Without a plan, you cannot expect to grow and reach the next level.

Written by: Catherine Park

Source :digitalagencynetwork

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Relationship Value Of Customer

Relationship value of a customer is a concept or calculation that looks at customers from the point of view of their lifetime revenue and profitability contributions to a company.This type of calculation is needed when companies start thinking of building long-term relationships with their customers.

Factors That Influence Relationship Value:

The Lifetime or relationship value of a customer is influenced by the length of an average "Lifetime" the average revenues generated per relevant time period over the lifetime,sales of additional products and services over time,referrals generated by the customer over time,and costs associated with serving the customer.

Estimating Customer Lifetime Value:

If companies knew how much it really costs to lose a customer,they would be able to accurately evaluate investments designed to retain customers.One way of documenting the dollar value of loyal customers is to estimate the increased value or profits that accrue for each additional customer who remains loyal to the company rather than defecting to the competition.

Linking Customer Relationship Value to Firm Value:

The emphasis on estimating the relationship value of customers has increased substantially in the past decade.Part of this emphasis has resulted from an increased appreciation of the economic benefits that firms accrue with the retention of loyal customers.

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Benefits for Customers and Firms

Both parties in the customer firm relationship can benefit from customer retention.This is,it is not only in the best interest of the organization to build and maintain a loyal customer base,but customers themselves also benefit from long term associations.

Benefits for Customers:

Assuming they have a choice,customers will remain loyal to a firm when they receive greater value relative to what they expect from competing firms.Value represents a trade off for the consumer between the components.

Confidence Benefits:

Confidence benefits comprise feeling of trust or confidence in the provider along with a sense of reduced anxiety and comfort in knowing what to expect.One customer described his confidence that resulted from having developed a relationship with a service provider.

Social Benefits:

Over time,customers develop a sense of familiarity and even a social relationship with their service providers.These make it less likely that they will switch,even if they learn about a competitor that might have better quality or a lower price.This customer's description of her stylist in a quote from the research just cited illustrates the concept of social benefits.

Special Treatment Benefits:

Special treatment includes getting the benefit of the doubt,being given a special deal or price,or getting preferential treatment as exemplified by the following quotes from the research.

Benefits for Firms:

The benefits to organization of maintaining and developing a loyal customer base are numerous.In addition to the economic benefits that a firm receives from cultivating close relationships with its customers,a variety of customer behavior benefits and human resource management benefits are also often received.

Economic Benefits:

Research reveals that over the long run,relationship-oriented service firms achieve higher overall returns on their investments than do transaction oriented firms.These bottom line benefits come from a variety of sources,including increased revenues over time from the customer,reduced marketing and administrative costs,and the ability to maintain margins without reducing prices.

Customer Behavior Benefits:

The contribution that loyal customers make to a service business can go well beyond their direct financial impact on the firm.The first and maybe the most easily recognized,customer behavior benefit that a firm receives from long term customers is the free advertising provided through world of mouth communication.

Human Resource Management Benefits:

Loyal customers may also provide a firm with human resource management benefits.First,loyal customers may,because of their experience with and knowledge of the provider,be able to contribute to the co-production of the service by assisting in service delivery.often the more experienced customers can make the service employees job easier.

 

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