Consumer Product Marketing Company
Marketing has been used as tool for informing the consumer on the content of the product or services being rendered by a given company. This is to ensure that consumers are persuaded in buying the products or services thereby creating consumer’s loyalty towards organization’s product. However, the current tools of marketing used for advertising products or services have been criticized as rather exploiting consumers by making them buy products they are not interested in or and those which they cannot afford. This paper thus discusses various aspect of marketing that forms the basis of consumer’s tastes and desire. In the process, the paper formulates and answers various aspects of marketing and marketing scenario.
As pointed out by Shiv, Carmon & Ariely (2006), consumer’s belief and expectations toward products and services is usually influenced by a marketing strategy. Through marketing, consumers normally form a judgmental approach which contributes to their subjective experience and believe towards given products or services. It is with such notion that marketing has often been criticized for forcing people to buy things they do not really want or need, or even cannot afford. The following paragraphs discuss various aspect of marketing that forms the basis of consumer’s tastes and desire. In the process, the paper formulates and answers various aspects of marketing and marketing scenario.
When a marketing manager first develops an advertising campaign before the marketing, it can create potential problems for the product. According to Webster (2010), advertising campaigns are normally developed to communicate potential ideas regarding a given product or service in order to persuade the consumer into purchasing a product or service. On the other hand, marketing helps in developing new product concepts or ideas that depict the true picture which enables the product to form the public image. Therefore, the problem with developing advertising campaign before marketing is that it would not provide sufficient research for the product. This means that such a product would not be able to capture the real picture on its preference among the public. This in turn, would reduce its sales.
For instance, when Microsoft Corporation plans to introduce a new PC operation system to replace the Windows one, it has to engage a number of researches that would make the new software to sell as well. First, the marketing research would be on the durability value of the new PC operating system especially if it is superior to the old Windows. Secondly, the research would be on public awareness of the old Windows, and their need to change with advance products that is in the same level with their increased expectations. Moreover, the market research would be on whether the new PC operating system enhances each and every logical segment of the market including gender and age.
On the other hand, while forecasting methods such as marketing has been used for forecasting sales, it has also been used especially by manufacturing managers in forecasting on the amount of inventory and supplies required to meet customer’s demands. According to Webster (2010), forecasting methods are used in creating little variance between the current production trend with the future ones in ensuring the maintenance of existing product as ordered by the client. In doing so, forecasting methods can examine the life cycle of products being supplied. This has helped in identifying the current market demand as well as projecting how the future it would change.
In most cases, market segmentation has helped in identifying portions of the market which seems to differ from one another. For instance, when producing and distributing a commercial based video product with crude violent and sexual excitement genres in order to educate the adult family members of age 18 to 24 years old, there are some market segmentation that should be considered. This produced video product must be accessible, through distribution channel, to the targeted consumers. Second, the content of the video product should be both homogeneous and heterogonous to enable it addresses all the targeted gender population. Moreover, it should be within customer’s income cycle. Therefore, mixing these three market segments i.e. age, gender, and income, results into two possible other marketing segments. These are; geographic segmentation that takes into account the location of the customer and the demographic segmentation that points out to customer’s income and gender. This shows that marketing manager has to effectively identify the uniqueness, accessibility, and durability of his or her product to customers.
According to Bishop, Graham & Jones (2006), industrial firms’ managers have been subjected to problems of shortage in material, labor, and production capacity due to the volatility of demand for their products. This has prompted industrial firms’ managers into adopting derived demand approaches in curbing the volatility associated with production of industrial products. In doing so, industrial firm managers have been able to place demand on a given distributed good or services based on changes resulting from other related goods and services. This in turn has impacted on the market price of the derived good or services.
For instance, when Coca-Cola Company included premium pay for bio-based material in its beverage packaging containing 30 % of plant-derived material, it resulted to pay increase for the new innovation. However, Sissell (2011) notes that this related raw material costs were not subjected to consumers. It thus resulted into increased market price for the product especially as the product was being distributed from the company to the other distribution companies.
On the other hand, the game theory especially for economic perspective has not only been used by Coke/Pepsi marketing strategy. For instance, Virgin Group and DELL Corporation use corporate parent and distinct product brands in their game theory to increase their market shares. The use of these different brandings is strategically based on the need of creating product or services value to customers. Therefore, using both corporate and distinct product brands creates a consumer-facing product brands that would ensure that all the stakeholders are affected or influenced incase the company falls or reinvent.
Challenges of Forecasting in Marketing
While the objective of developing forecasting methods for the new product based on existing sales data and those with no sales data is to create consumer’s loyalty and awareness, the latter is endeavored with some challenges. According to McBurney & Parsons (2006), engaging forecast demand for new product without previous sales data often make the marketing strategy not to realize the reasons behind developing forecast. Moreover, it results in producing forecast that does not ultimately address the diversity of stakeholders’ needs.
However, for frequently purchased products, active marketing tools can be deployed in ensuring successful new products have high trial and repeat rates. Warren & Brandeis (2010) notes that using a prevalent marketing management tool would increase the life of the new product among consumers thereby resulting into successful high trial and repeat. Therefore, the Marketing manager should ensure that there are successive stages of marketing products in creating product awareness, and loyalty among customers. These would involve the modification of products’ characteristics i.e. quality, appearance or performance as well as changing some obvious things the consumers have known about the product especially through marketing mix elements. Additionally, marketing mangers can create branding equity through marketing programs that can ensure strong association of the new product with the consumer.
While proliferation of auction sites on the websites tend to provide companies with important information regarding consumers, it has on the other hand breached on consumer welfare requirements especially those of privacy and safety. Warren & Brandeis (2010) noted that the engagement of various companies in proliferation of auction through online sites has not adequately addressed consumers’ privacy interests. For instance, in purchasing an auction product, a consumer might be subjected to having to prove the information about the activities he or she engages in. this is because if this dispatched information is not safely protected, a third-party may be able to access it thereby forming speculation which might stain the consumer’s image. This can be prevented if companies promote substantive privacy protection methods within their practices. Moreover, offering simplified consumer choices would ensure that the client is not entitled to share basic information of their activities which might affect the welfare when breached by a third party.
Even though web advertising has become the new tool in increasing communication with consumers, the banner ads on companies’ websites have not effectively ensured this. For instance, the click through banners ads only provide sites for product’s quick sales but fails to educate and persuade the consumer on the importance of purchasing the product. In the banner ads, both the advertising and value promotion incorporate a marketing technique that is not informative, but rather persuasive. Therefore, engaging technology that offers direct interaction between the organization such as social web-based sites like Facebook, Tweeter, and MySpace is the most effective way of enhancing communication. This is due to the fact that these Social sites directly link the organization to the consumer thereby revealing the consumer’s needs and expectations.
On the other hand, using another company for product distribution has help in distribution channel. For instance, Apache Software Foundation normally uses Amazon’s web services in offering and distributing new versions of its software. Additionally, HP Company normally buys processors from Intel Corporation during assembling, and in turn, advertised these processors through its website to consumer. The benefits of incorporating such a distribution channel are that the original companies are flourished with esteem customers of the distributing companies. Additionally, these original companies are able to market their products by directly using their distribution company’s websites in meeting consumers’ need and demand.
The use of web in distribution is important as it connects the organizations to consumers who are beyond their physical reach thereby addressing their concerns and need. It also ensures that companies get immediate feedback on the customer’s preference of advertised products. However, distributing goods and services through the web forms an indirect communication tool that tends not to effectively connect the company to customer. In turn, both the customer and organization may exaggerate on the product thereby resulting into ineffective promotion mix approaches. Moreover, web-based distribution channel would not result into distribution of products to regions experiencing high level of technological illiteracy or lack of web-based technologies.
In is thus evident that marketing as an important tool that if properly utilized can result into effective distribution channel for goods and services thereby creating consumers’ loyalty. There is thus the need to incorporate such marketing strategies as the use of simplified banner ads on companies’ website that protect consumer’s welfare.