Showing posts with the label marketing channels

The Effectiveness of Push vs. Pull in Online Marketing

Marketing strategy is arguably one of the major components of running a successful business. Without customers you have no sales, revenue or reason to exist. Online marketing is still in its infancy and will continue to grow and develop for the foreseeable future. A study by Spilker-Attig & Bettel (2010) analyzed the effectiveness of push and pull strategies at an online retailer by using 2.7 million orders across different price points.  People regularly confuse the subtle but important difference between marketing and sales. Marketing is the long-term oriented strategy and sales are short-term customer-specific transactions (Homburg, et. al., 2007).   Marketing focuses on a larger demographic and casts a wide net while sales is focused more on specific activities that pin-point customers.  All sales are based on interactivity between the company and its customers. Connectivity is seen as an important variable in online advertisement (Roehm & Haugtvedt, 1999).  

The Spillover Effects of Online Marketing Channels

Marketing is a main source of income generation as firms seek to attract web visitors and convert those web visitors into paying customers. Firms consistently rely on a few marketing methods and overstate the importance of those methods without understanding how they work together to convert purchasing behavior. Research by Li & Kannan (2014) helps companies understand online channels, historical visits using these channels, and how spillover effects convert visitors into paying customers. They propose a new model that helps conceptualize the concept.  Even though some companies rely on specific channels it is the combination of advertising channels that create the marketing mix. It is difficult for firms to determine which channels work well and which channels do not effectively contribute to customer conversion rates. Online marketing will move from $15 billion to $24 billion by 2016 (eMarketer, 2012). The growth in marketing expenditures will require better analysis o

Selecting Sales Channels

Sales channels can influence which products customers are exposed. Manager’s often select the sales channels they believe will best foster business growth. The researchers Karamehmedovic and Bredmar (2013) investigated the strategic choices behind how managers make sales channel decisions. You may be shocked to find that most decisions are rooted in personal experience or faulty logic without a thorough analysis of what makes one channel more effective than others. Managers regularly believe that marketing channels often compete with each other. Even though this can be true in some cases, it is often not the market related. Companies that use a single marketing channel are often less competitive than those who find multiple ways of getting products into the hands of customers (Porter, 2001). Marketing is about exposure and if channels are not properly reviewed for effectiveness, the company may be missing excellent opportunities. Even though managers may have preferred chann