Theoretical Review of Marketing

Topics: Marketing, Facebook, Pricing Pages: 9 (2998 words) Published: February 28, 2015
Part 1: Theoretical Review of Marketing

Marketing is all about people and communication, and the way in which businesses connect with customers has changed drastically over the past century. The introduction of digital marketing has provided new ways in which businesses can connect with customers and are coming increasingly important (Grensing-Pophal, 2014). However, older traditional methods are arguably equally as effective when marketing a new product or service, and businesses continue to use old and new techniques. Digital marketing through the usage of smart phones has increased rapidly over the past century with around 4.33 billion people using a smartphone in 2013 (eMarketer, 2014), which has resulted in businesses taking advantage by creating phone applications. “Apps” install in seconds and allow customers to access ample information on a business through their fingertips. Apps can be easily updated by businesses meaning they are always current and can provide valuable information for the customer. An example of a business that uses apps effectively is popular food chain Nando’s. Their app includes menu information, promotional deals, updates on loyalty cards and where the nearest restaurant is situated (App Store, 2014). When comparing and contrasting digital and traditional methods of communication, it would appear that digital is the more cost-effective technique because there is no charge to advertise through social mediums like Facebook. However, ‘traditional methods have a high success rate’ (Higuera, V, 2014) and are easily accessible through a newspaper, magazine or radio as statistics show that 9,540,993 people buy a newspaper in London every day (Greenslade, R, 2014). When considering audience coverage, digital communication has a ‘far greater exposure’, with anyone in the world being able to see a little as one marketing campaign (Business zone, 2013), compared to traditional communication, which is seen to have a more localised approach, for example, when companies advertise through radio like Radio Norfolk, only those in that specific county will be able to hear about new products or services on offer. Finally, with the use of digital communications, you can assess what, if any, progress the company has made from the digital campaign very quickly and further improve the outcome, whereas with a more traditional approach, the process of gathering information could be extremely time consuming. Therefore, when comparing and contrasting both digital and traditional communication, it would seem that digital marketing is the most effective method due the almost infinite audience a company can appeal to at an extremely low cost. However a vast amount of people still listen to the radio and read newspapers daily, hence traditional forms of communication are also an effective method of launching new products and services. The marketing mix is a key issue when companies attempt to launch a new product or service. Firstly, the role of ‘price’ is arguably one of the most important out of the ‘4P’s’ as it is the ‘only element that generates a turnover’ for the company (Learn Marketing, 2014), because the other ‘3P’s’ consist of the organisations variable costs. There are several different pricing strategies that enable the launch of a new product for example the ‘price-skimming’ method whereby you enter the market high with the intention to lower the price in the long term. For example a games console such as the Xbox360 came into the market at £279 (Surette, T, 2005) can now be bought for £179.99 (Argos, 2014). Therefore the role of price is of paramount importance in the marketing mix because the ‘price of a product or service will determine how the consumers perceive’ and ‘reflect its brand positioning’ (Dibb, S, 2013). Moreover, when considering the role of a ‘product’ as an element of the marketing mix, the product itself must be well designed, creating a strong brand image because it is ‘central to a...

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