Marketing in the Century Essay Example

helps businesses raise prices while also improving customer loyalty and satisfaction. Price discrimination also plays a role in this practice where prices are determined based on demand rather than cost. In the retail marketplace, there are three commonly used pricing models: first-degree price discrimination charges different prices based on willingness to pay; second-degree price discrimination offers various pricing options;According to Garbanzo & Lee, third-degree price discrimination focuses on market-segmentation pricing. From a business perspective, first-degree price discrimination is more profitable as it maximizes the value obtained from an item. However, second-degree price discrimination holds more value for consumers as it allows them to choose a pricing option that aligns with their desires and requirements. Traditional retailers are reassessing their business practices and technology usage due to the rise of online retailers. The integration of both online and offline channels has become a major focus for retailers in order to effectively manage customer relationships across multiple channels (Beasts, 2006). Retailers must have a thorough understanding of customer behavior and seamlessly execute strategies across all channels in order to achieve this successfully. Online retailing is growing at a faster rate than any other consumer purchasing channel currently available. However, integrating online retailing with offline retailing presents several challenges such as customers encountering different prices when comparing products in-store and online. Additionally, retailers compete at national and local levels regarding prices and product offerings, while factors like location and individual preferences can significantly impact purchase decisions.According to a study conducted by Beasts (2006), when consumers prioritize price in their purchases, the issue of varying prices becomes more prominent. Regardless of where the product is purchased, saving $20 can

have a significant impact on customers. However, Circuit City caused frustration, confusion, and a lack of understanding among consumers by offering different prices for the same item online, in their ad, and in-store without any explanation.

In 2007, Francis conducted a study that highlighted the importance of adopting various approaches in the internet retailing marketplace. Internet retailing can be classified into three categories: offline goods (such as books, groceries, CDs) that are purchased online and delivered at a later time; offline services (such as travel bookings, event tickets, hotels) that are paid for online but received physically; and electronic goods (like software, amps,digital books) that are downloaded directly from websites.

Furthermore, consumers now have access to vital services such as banking,brokerage,and chat/dating through websites. Online retailers must acknowledge these diverse forms of online shopping and effectively cater to customers' needs.Even though shopping behavior has changed due to digital advancements, some companies still rely on traditional advertising methods such as billboards, TV commercials, radio ads, and posters. However, in order to effectively reach today's consumers, companies need to adapt their advertising strategies to align with their preferences in this digital age. This includes incorporating various online advertising formats like banner ads, pop-up ads, floating ads, streaming sidebar ads, pull banner ads, and text ads to remain competitive. Companies also make use of social media platforms like Facebook and Twitter to gather user information and drive traffic to their websites.

Offline stores respond to competition from online retailers by using direct-mail flyers, catalogs, television commercials, mobile marketing campaigns, and internet promotions. Additionally, they work on enhancing their online presence while improving the shopping experience in physical stores. On the other

hand,
online retailers focus on improving delivery turnaround time while offering perks like tax-free purchases,
free shipping,and hassle-free returns or exchanges. It is worth noting that although some online stores may have lower item prices than offline stores,
they might charge higher fees for shipping and handling.
Despite this disparity,
online stores are generally growing at a faster rate than offline stores due
to the expansion of the internet.The expansion of online platforms has led to a wider range of pricing models, including flat fees per user or tiered fee structures based on usage levels. The pricing model for an online retailer depends on the revenue generated by each user every month, with two options available: a variable model or a fixed-fee model. In the fixed-fee model, there is a lump-sum monthly fee that covers specific products and services outlined in the contract, which organizations seeking predictable costs prefer. When selecting a pricing model, online retailers must consider both financial benefits for their company and customer satisfaction, as well as overhead costs and anticipated growth.

Globalization has had positive effects on international relations; however, it has also resulted in some universal issues. According to Carney (2003), September 11th demonstrated that global integration widened the gap between different socio-economic groups. Furthermore, governments face challenges in combating decentralized networks such as al-Qaida as these networks have the ability to move freely and discreetly across borders to carry out acts of terror.

Marketers should be aware of both the advantages and disadvantages of globalization and should utilize its benefits without becoming overwhelmed by its complexities. Reedy & Was (2004) discussed the advantages and disadvantages of globalization in terms of marketing.The advantages of globalization include economic growth,

technology transfer, democracy spread, advancement of free enterprise, cultural unity, improved communication, global news coverage, better health and living conditions, longer life expectancy, and multinational corporations. However, there are also disadvantages such as increased unemployment and trade deficits in developed countries, terrorism issues, loss of competitiveness for developed nations, exploitation of poorer nations , widening economic disparities between rich and poor countries,cultural and religious conflicts,dissatisfaction among poorer nations ,increased pollution from manufacturing and transportation worldwide,and the spread of diseases like AIDS ,West Nile virus,and various types flu. Despite facing criticism ,globalization will continue to persist . Although there might be some attempts at containment through tightening borders,intellectual property protection measures,and internet communication firewalls (Reedy & Was 2004,p.169). Organizations and governments that have a comprehensive understanding of the positive and negative aspects of globalization can adopt a more efficient approach towards it.The advancements in technology today have had a significant impact on communication and marketing strategies.The effectiveness of traditional mass media has been greatly diminished by the use of smartphones,broadband,wireless internet,and ad-skipping devices (Kettle & Keller 2012,p.476).In the past, marketers could effectively reach consumers through only three television channels for approximately 80% of the time. However, in today's digital age, they would need to advertise on at least 100 channels to achieve similar results. Moreover, due to technological advancements, consumers are now bombarded with irrelevant advertisements.

Fortunately, new software allows internet users to easily block spam and pop-up ads (Ensues & Merrier, 2007). Telemarketers also face obstacles such as caller ID and the "Do not call registry." To combat these challenges, marketers are implementing alternative strategies suggested by Ensues and Merrier (2007). These strategies involve utilizing bottlenecks

in high-traffic areas like subways, elevators, airplanes or bathrooms where people inevitably get stopped. Additionally, advertisers use the Trojan horse approach of placing ads on frequently encountered materials like coffee cups and pay stubs. They also target adult playthings like golf carts to capture consumer attention outside their homes. Another strategy involves engaging people in public spaces through interactive technology.

The Internet has significantly impacted retailers' advertising and promotion strategies by allowing for a broader reach through various forms of advertisement that cannot be turned off. To stay ahead in the competitive market, companies must develop an effective brand. Furthermore, the Internet provides opportunities for consumers to provide feedback on products and services which ultimately influences retailers' decision-making processes.The feedback obtained from online communities allows retailers to be more innovative based on consumer input. With the global expansion of the Internet and related information technology-based products and services, there has been a growth in both the number and complexity of communication channels available to reach consumers. This has greatly changed how consumers receive information from marketing professionals, resulting in reduced effectiveness of traditional media advertising. The fragmentation caused by various media sources such as cable television, blogs, video-on-demand, webmasters, video games, websites, digital video recorders (DVR), and multi-functional communication devices has eroded traditional marketing techniques. These technological advancements have empowered consumers with the ability to choose when, where, and how they consume information. As a result of the evolution of the Internet, there has been a transformation in the relationship between consumers and marketers while impacting their purchasing behaviors. Today's consumers are more knowledgeable, have higher disposable income, and can access information through various channels. Therefore,

it is crucial for retailers to recognize the significance of investing in improving the online experience as part of their overall strategy to replicate and reinforce the in-store experience.
Retail stores can differentiate themselves by offering interactive help, video demonstrations, and product comparisons. In addition, customers now expect the convenience of ordering online and being able to pick up or return products at physical stores or other distribution points. Retailers who effectively engage with customers online have a better chance of building relationships with them. Advancements in technology have given marketers the ability to use direct marketing tactics that eliminate intermediaries and reach consumers directly through platforms such as websites, cell phones, catalogs, and telemarketing. Direct marketing has become popular in the business world because it offers diverse approaches for connecting with consumers. These include traditional methods like catalogs and direct mail, as well as newer methods like email sales targeting consumer markets or charitable institutions. The benefits of direct marketing are numerous: consumers save time and avoid traffic and parking issues through market demagnification; they appreciate toll-free numbers, always-accessible websites, prompt delivery, and excellent customer service from direct marketers. Sellers also benefit from the ability to target specific demographics through market demagnificationBy acquiring mailing lists that target individuals with specific characteristics such as weight, handedness, or wealth, marketers can personalize their messages and establish lasting relationships with consumers. This approach also allows them to experiment with different media and messages to find the most cost-effective strategy while maintaining a competitive edge.

Moreover, selling products online has experienced significant growth in recent times and has become increasingly popular. Interactive marketing techniques like websites, search ads, display ads,

and emails provide both consumers and marketers with enhanced interaction opportunities and personalized experiences.

However, there are advantages and disadvantages associated with interactive marketing approaches. On one hand, online marketing enables businesses to create online communities, reach individuals through search engine keywords, and acquire relevant website advertisements. On the other hand, combining direct marketing with interactive marketing may lead to consumers filtering out messages or fraudulent clicks generated by software-powered websites. There is also a risk of losing control over online messages if they get hacked or vandalized (Kettle & Keller, 2012).

According to Kettle & Keller (2012), integrating direct marketing with interactive marketing proves to be a more effective approach overall.Companies like Eddie Bauer, Lands' End, and the Franklin Mint have successfully built their brands through direct marketing via mail-order and phone-orders before opening retail stores. They promote their stores, catalogs, and websites by featuring their web addresses on shopping bags (p.536).

To meet customer demands in the target market, The Ups (Marketing) offers a variety of global and online marketing strategies that can be used in combination. The Ups cover various aspects such as product components, brand names, packaging design, and after-sales service. Moreover, promotion plays a crucial role in informing customers about the product and creating awareness. Advertising, sales promotion, and personal selling activities should be easily accessible when necessary.

Consumer demand and perceived value for money are factors that influence pricing decisions for products or services. When determining the price strategy integration pricing, premium pricing, and price skimming strategies should be taken into consideration.

The people factor also plays an important role in ensuring market accessibility for products and services (Miller 2001). To maximize global earnings

organizations need to understand local culture deeply as well as regional laws.Translating their website into multiple international languages while choosing search engines accordingly can bring benefits.Organizations should ensure their web design is adaptable for international users. Social media platforms like Backbone, Twitter, and Youth can aid in reaching local and global audiences in various languages. The objective is to expand the target audience and enhance product accessibility. User-generated innovation benefits companies by allowing users to generate unique ideas that are beneficial. Users tend to be more creative when they have a better understanding of their desires and preferences (Von Hippie, 2007). According to Von Hippie (2007), enabling users the freedom to innovate themselves significantly boosts user satisfaction instead of limiting them to pre-existing options. Manufacturers can engage in a two-way conversation with consumers and provide them with a sense of brand ownership by utilizing user-generated content (Busses, 2009). Doris demonstrated this by hosting a competition for a Super Bowl commercial with a $1 million prize (Busses, 2009). The winning ad featured a man being hit in the crotch with a snow globe, created by two unemployed brothers (Busses, 2009). Although there were doubts about the authenticity of this conversation due to the cash prize involved, it still accomplished its intended goals. Some argue that when consumers have to pay for something, their motivation is not based on their liking for the brand but rather their desire to win money (Busses, 2009).In order to establish a successful relationship between consumers and brands, it is essential to provide tangible benefits for the consumer. Doris, who had previously placed fourth in the USA Today Ad Meter Super Bowl

ad spot competition, made her third attempt this year. To increase her chances of winning, she sought external assistance and collected ideas from users.

Businesses are now realizing the significance of involving customers in new product development, even if there is variation in creative quality. They are exploring effective methods to retain these ideas and keep them fresh by engaging with different individuals and groups such as customers, professionals, channel members, and marketing agencies. This encourages consumer participation in innovation.

According to Kettle & Keller (2012), companies are using "scrounging" techniques to generate new ideas and manage consumer-generated marketing. One popular method is crowd sourcing which involves inviting the online community to contribute content or software in exchange for incentives like prize money. Crowd sourcing has given rise to companies like Youth and Wisped.

Taking advantage of opportunities presented by consumers' unmet needs or technological advancements provides an excellent chance for businesses to captivate consumers with innovative and valuable products or services. Furthermore, when a company collaborates with consumers in creating products or services together, it can positively impact their perception of the company's brand image.Kettle & Keller (2012) outlined seven strategies for gathering customer ideas, including observing product usage, soliciting feedback on products and desired offerings, utilizing customer advisory boards and websites for new ideas, forming brand communities, and challenging customers to improve products (p.576). To stay competitive in the market, companies should employ various methods to strengthen their position. Instead of relying on mass marketing techniques, they should actively enhance their marketing strategies through personalized email communications and segmentation techniques. Effective communication with specific segments is crucial, using appealing language and active engagement on popular social

media platforms like Facebook, LinkedIn, Twitter, and Google+. Additionally, prioritizing human responses when addressing consumer inquiries received through social media or email is essential. Companies cannot remain stagnant if they want to achieve success.