In order to satisfy the needs and wants of our customers, we should know more about the new economy. Today, in the 21st century, businesses are operating in a globalized economy. Technologies are challenging every business. This new economy is now based on the Digital Revolution and the management of information.
The digital revolution has placed a whole new set of capabilities in the hands of consumers and businesses. Consider what consumers have today that they didn’t have yesterday:
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A substantial increase in buying power
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A greater variety of available goods and services
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A greater amount of information about practically anything
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A greater ease in interacting and placing and receiving orders
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An ability to compare notes on products and services
Today’s companies also have a new set of capabilities:
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Companies can operate a powerful new information and sales channel with augmented geographical reach to inform and promote their businesses and products.
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Companies can collect fuller and richer information about markets, customers, prospects, and competitors.
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Companies can facilitate and speed up internal communication among their employees.
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Companies can have two-way communications with customers and prospects, and more efficient transactions.
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Companies are now able to send ads, coupons, samples, and information to customers.
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Companies can customize offerings and services to individual customers.
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Companies can improve purchasing, recruiting, training, and internal and external communications.
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Companies can substantially improve logistics and operations for substantial cost savings while improving accuracy and service quality.
3. How do we get closer to customers?
Needs, Wants and Demands by Philip Kotler:
Know the needs, wants and demands of your customers can really make you get closer to them.
Needs: A human need is a state of felt deprivation of some basic satisfaction. People requires food, clothing, shelter safety, belonging, esteem, and a few other things for survival.
Wants: are desires for specific satisfiers of these deeper needs. For example, an American needs food and wants a hamburger, needs clothing and wants a Pierre Cardin suit, needs esteem and buys a Mercedes.
Demands: are wants for specific products that are backed by an ability and willingness to buy them.
However, the notion of "closeness" often compared to the concept of the village shop with a proprietor who know their customers, can cater for their precise needs. The process of market research is founded on nothings of gaining and interpreting information to "know" the market. This involves data-gathering: Structure of the market, Size, growth potential, Lifespan
Data can come from a variety of sources.
Primary research might be undertaken, i.e. research undertaken by the organization or commissioned through a specialist agency.
Secondary research is also crucial, this is research done by other organizations, for example, the government, trade associations (for magazines see ) and other forms of research bodies.
Research may relate to the following broad categories of inquiry:
Market analysis - desirable markets, company's ability to function
in that market and compete.
Customer analysis - important here is market segmentation, needs of segments, purchasing decisions, who makes them (for example, parents buying goods for children).
Market segmentation - a way of breaking down markets; for example, women's magazines aimed at different segments of women's market - compare Best with Vogue. Carve out a niche in the market.
Competition analysis - main competitors, competitors' approaches, relationship of own company to competitors.
Environment analysis - PEST = Political, Economic, Social, Technological considerations, opportunities and constraints – for example, the e-book is still in its early stages, no stable platform.
Way of considering market over time in context. What markets are at what stages, growth or decline.
P - political influences, legislation, restrictions on content, self-regulation (teen mags, see )
E - what are the global, national and regional economic trends?
Tax, interest rates, disposable incomes in a particular market.
S - social trends; for example, proportion of a population in a particular category (gender, age)
T - technological changes that impact; for example, e-delivery of publications, changes in printing and manufacturing in the DTP boom in the 80s, end of hot metal.
Market research is an area we will consider at a later stage. However, should be looking at back issues of The Guardian via the Guardian web-site for articles on consumer trends as background to this area of marketing.
4. Marketing Considerations/Goals
Companies seeking to develop strategies which are more effective than their competitors in dealing with a target market. This requires long-term planning usually in the form of a marketing plan. This plan informs the management approach and culture of an organization, the idea being that the "customer awareness"
permeates every and all aspect of the organization. Equally financial and other resources are geared towards achieving profitability in relation to their target market.
Goals concretized in the form of a marketing plan this takes into account:
Marketing Environment/Context - PEST
Marketing Mix -
Four Ps:
Product
Involves thinking about the range (publisher's list, magazine company's stable), features of the product, packaging, design or practical aspects, branding.
Price
Involves pricing strategies (Wordsworth classics price-cutting campaign), payment terms (subscription sales in magazine publishing), extended credit (book clubs)
Place
where/through what channels product is available, non-traditional outlets (booktrade versus supermarkets), direct marketing (academic titles), intensive distribution (top magazine titles)
Promotion
Branding (profile of an imprint such as Xpress, magazine's identity - Marie Claire), advertising impact to build notion of product's features may be abstract features - Red, a substitute best friend, big sister, process of product differentiation (brand associations), selling approaches, might also include unbranded sales
opportunities for example selling through a bookclub such as QPD.
Need to be aware of direct and indirect competition
Direct - Penguin Pound Classics versus Woolworth
Indirect - other ways of obtaining product's benefits
5. Marketing Plan
Marketing plan therefore traditionally consists of a PEST analysis, and the marketing mix defined in a marketing plan. Another key aspect of which is what is called a SWOT analysis. PEST is an external audit, SWOT is external/internal.
SWOT: Strengths
Weaknesses
Opportunities
Threats
In addition, there is the importance of different elements in the mix and how these are foregrounded, promotion very important in the areas of consumer publishing we will look at.
Main distinction in promotion between "above the line" refers to main, commissionable media, "below the line" - non-commissionable media (covermounts such as free bag with Elle), gifts, competitions, discounts (special prices on bestsellers).
Promotion divided via Promotional Mix
Promotional Mix - Personal selling, advertising, sales promotions, Public Relations.
5 New Marketing
Will be examining this. New marketing hailed as a radical rethink of marketing, based on "relationship marketing", criticizes notion of 4 Ps replace the product with an "experience", foregrounds concept of customer participation in the development of a commodity. See article on new marketing in course reader.
References
Baverstock, A, How to market books, Kogan Page, 3rd edn., 1999
Baverstock, A, Commonsense marketing for non-marketers, Piatkus, 1995
Davidson, H, Offensive Marketing, Penguin Business Library, 1987
Philip Kotler, Marketing Management, Prentice Hall International, 11th edn., 2003
