Skip to main content

Posts

Showing posts with the label advertising

Predicting Purchasing Behavior Patterns in Stationary Markets

Predicting patterns of consumer behavior can be difficult. To date no one has developed a perfect model as each has its own particular short-comings. The Dirichlet model is well-established that both describes and predicts purchasing behavior patterns in stationary markets. The researchers McCabe, et. al. (2012) focuses on the success of the model for companies trying to gain market share.  It should be first understood that all purchasing is based in habits of purchase. Customers follow certain patterns based upon how they associate the information among competing brands. Marketing nudges individuals to make one choice over another to expand their repertoire of purchasing behaviors. Strong marketing creates memories that become associated with products and services.  Structural changes in behavior can occur when changes force choices beyond day-to-day decisions. Even though industrial marketing and purchasing is long-term and stable it can change. These changes usually are

Social Networks Percolate Products and Opinions

Word of mouth fosters social learning about issues, products, and opportunities.   Friends that act and think alike often create clusters and these clusters can influence the purchasing choices as well as the decisions members make. Economists often have difficulty formulating how social networks formulate and influence people’s impressions of products and services. Research by Arthur Campbell (2013) sheds light on how word of mouth in social networks influences perception of value.  When individuals are interested in a concept or product they are naturally more willing to engage in word of mouth. Generally, as a product’s price is lower it raises the interest level and the potential discussion of the product leading to more word of mouth activity. It is this interaction that brings to the forefront ideas, concepts, and discussions on products that are settled within a group.  One of the difficult aspects of understanding social networks and diffusion is the complexity of

The Process of Market Segmentation

As most companies cannot compete in an entire market, they usually break down it down into smaller markets. This process of market segmentation affords the opportunity to focus selling products in one, or a few, defined areas. It helps to create focus and effective use of marketing resources to maximize return on investment. Effectiveness is seen as dollars spent and dollars earned.  As companies gain resources and knowledge, they begin to use market research to develop complex and effective marketing strategies. The process of evaluating a market segment helps in developing strategies that further create efficiency in target marketing ( Kutkut, 2012). Target marketing is the chosen focal point of the products/services, advertisements, and related efforts.   As the skill level of managers rises, so does the success of reaching and influencing the target market.  There are generally four levels of market segmentation that include (Finch, 2012): Mass Marketing: The firm

The Nature of Marketing and Marketing Management

At the center of all business is the concept of exchange. Just like when early American traders provided fish in exchange for imported supplies the process of exchanging a value-laden thing (i.e. product or service) for another value-laden thing (i.e. money) still continues on today. It is the process of exchanging something of value for something else of value. Each product or service represents a component of effort, often measured in terms of money, to determine the value of this exchange.   The goal of any company should be to sell additional products or services by ensuring the awareness of its perceived and tangible value to the customer. Marketing is all about the selling of value. The American Marketing Association clarifies the value exchange of marketing management as “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” (2011). Marketing i