MARKETING

Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives.

These definitions reveal the four main features of marketing. Marketing: Involves a wide range of activities Is directed at a wide range of goods, services and ideas Stresses the importance of satisfying exchanges — that is, something in return Is not limited to the activities of businesses

ROLE OF MARKETING• Strategic role of marketing goods and services Strategic role of a business is to translate business goals into reality; a common goal of business is profit maximisation.Business marketing provides the consumers with:- ChoiceAll business work in a competitive environment, in order to attract consumers they must differentiate their product from similar products from other business. This can occur in relation to product speeches, pricing, strategies, or promotional activity. This is known as the competitive advantage, this provides the consumers with choices.

- EmploymentTo provide a product to consumers business must employ labours to consist the creation of the product, to research innovative method of improving product and to promote and sell products. Marketing is therefore a source of employment in Australia.

- Standard of LivingBusiness market and targets products that improves one’s lifestyle. Research and development has played an important role in improving products, which improves the quality of life. This also provides the business with continuous income stream. E.g. Mobile Technology. -Brand AwarenessOne of the main goals of a business is to increase the brand visibility. This is usually achieved through strong marketing campaigns and advertisement.

Within the business the main goal is:

- Profit maximisationWhen the business is able to increase its sales it will be able to also increase its profit. Profit maximisation is the main goal of all business

• Interdependence with other key business functionsThe interdependence of marketing and other key business is how marketing is integrated into the aspect of business.Operation Sales prediction of the marketing will predict the

volume of products made and can lead to changes in the existing product in process. It can also affect the ordering of supplies needed in the production process.

Finance The sales and profit forecast from marketing are used to prepare financial budgets and can provide a reason for borrowing money. This marketing forecast can also be used to set up a system of financial controls within the business.

Human Relation Marketing determines the volume and the quality demanded for a product this directly effects the number and result in a real location of test of existing staff

• Production, selling, marketing approachesIn the past, businesses tend to concentrate on a single element of marketing mix, as in the production and selling approaches. Today’s business approaches marketing as a combination of all elements of the marketing mix. Production approach: 1820 – 1920 - Where a business focused on the production side of good and services Selling Approach: 1920 – 1960 - Where the importance of selling and promotion of goods and services became more important Marketing Orientation: 1960 - 1980 -Where the business finds out the customers’ needs and wants and approach to selling where all the elements of marketing mix are considered.

• Types of markets Type of Market DefinitionMarket A group of individuals or organisations need or

want products, have money to produce them and are able to and willing to spend it.

Resource Market Where the sales of raw material used in the production process occurs

Industrial Market Where goods used in the production are tradedIntermediate Market Where the retail businesses purchase products

that have been produced by other organisationsConsumer Market Where businesses sell their product directly to

the costumersMass Market The market where the products are aimed at all

consumers irrespective of their gender, age, income or residential location

Market Segment An area of particular market on which the business chose to focus

Niche Market A smaller and specialised section of a market segment

INFLUENCES IN MARKETING • Factors influencing customer choice- PsychologicalThese influences within an individual affect his or her buying behaviour.

Perception- Perception is the process through which people select organise and interpret information to create meaning.

Motives- Motives is the reason that makes an individual to do something Attitude- An attitude is a person’s overall feelings about an object or activity Personality and self-image- An individual’s personality is the collection of all the behaviour

and characteristics that make up that person. Self-Image is how the individual view themselves

Learning: Learning refers to the change in an individual’s behaviour caused by information and experiences.

- SocioculturalThese influences are forces exerted by other people and groups that affect individual buying behaviour.

Social Class- Social class refers to a person’s relative rank in the society, based on his or her education, income and occupation.

Culture and Subculture- Culture is the learned values, beliefs, behaviour. Culture influences our buying behaviour because it infiltrates all that we do in our everyday life.

Family and Roles- Groups of people with whom a person closely identifies, adopting their attitudes, values and beliefs.

- EconomicEconomic forces have an enormous impact on both businesses and customers. They influence a business’s capacity to compete and a customer’s willingness and ability to spend.

Boom- The boom period of unemployment and high incomes. Recession- The recession period is when the income drops dramatically.

- Government Policies directly or indirectly influence business activity and customers’ spending habits Laws such as the Competition and Consumer Act 2010 (Cwlth), Sale of Goods Act 1923

(NSW) and the Fair Trading Act 1987 (NSW) influence marketing decisions.

• Consumer laws Both federal and state government has introduced consumer laws with the aim protecting the rights of the consumers and clarifying the responsibilities of a business. The Australian Consumer Law commenced on the 1st of January 2011 and is a single governing consumer law that applies to all Australian consumer and the businesses. The full text of the competition and consumer Act 2010, which protects the consumers business, practices.

– Deceptive and misleading advertisingEven though deceptive and misleading advertisement is illegal, it is still used by some business. A deceptive and misleading advertisement consists of:- Fine Print- Before and After Advertisements- Tests and surveys- Country of origin- Packaging- Special OfferThe two most common type of misleading advertisement is Bait and Switch advertisement and dishonest advertisement. Bait and Switch advertisement is when a few products are at reduced price and therefore enticing prices to attract consumers, and Dishonest advertisement is when a business uses words that are deceptive or claims that the products has a quality but does not.

– Price discriminationPrice discrimination is the setting of different prices for a product in separate market. This can be cause of two reasons:

1. Different location 2. Product differentiation within one market

– Implied conditionsImplied Conditions are the unspoken and unwritten terms of the contract.

– Warranties All businesses have a certain obligation with regards to the product they sell. A warranty promises by the business to repair or replace any faulty products.

• EthicalThere are many ethical issues associated with marketing some of these include:

Creation of Needs: Materialism. Critics of products presumption feel that most businesses, especially large businesses use promotional strategies to persuade and manipulate customers to buy whatever the firm wants to sell.

Stereotyping males and females: That is, female is constantly seen as cooking and cleaning while the male is watching sports and drinking beer.

The use of sex to sell products: Advertisers use sex portrayed images to appeal to the costumers that the product would increase their attractiveness and charm of the user. These ads have subtle and persuasive impact.

Product Placement: The inclusive of advertisement in entertainment. It is often subtle and critics question if this type of advertisement is ethical. Because of the fact most costumers are not aware that the product is actually being advertised. It blurs the line between advertisement and entertainment.

- Truth, accuracy and in advertisingThe main unethical marketing practices include untruth due to:- Concealed Facts: Pieces of information purposely omitted.- Exaggerating claims: Referred to as puffery- cannot be proved. For examples a product being compared to another and the business cannot prove what has been compared. - Vogue Statement: Statements that use words that the consumer assumes the advertisement intends, for e.g. “this is will help reduce wrinkles” - Invasion of Privacy: The collection of data by tracking web users and using this information to target them with advertising.

- Good Taste in AdvertisingWhat is considered to be a good taste is highly subjective. Some consumers may be regarded an advertisement as offensive, while others view them inoffensive. The ABS (Australian Bureau Standards) note is to ensure that acceptable advertising standards are followed. This is administrated through a system of self regulation which some argue is ineffective, as the ABS lacks the authority to enforce these standards leading to the temptation by some to ignore industry establishment guidelines.

- Products that may damage healthThe federal and state government have sought to restrict the provision of various goods and services that may act as a health determent to the consumer, without applying a ban of their sales. These goods and services are often referred to as ‘sin’ goods, because in essence, they are bad for us. Example includes sales of cigarettes and alcohol, restriction on tobaccos, entries of casinos. There are also concerns about the marketing of certain products to children. These can the advertisement of junk food.

- Engaging in fair competitionBusiness across Australia operates highly competitive environments which can lead to some business engaging in unfair marketing strategy in order to increase their marketing share. From a Legal perspective, it is the role of the Australian Competition and consumer commission to regulate business behaviour includes: -Price Fixing: Between two or more major competition in the market, combine to set a high price with an aim of reducing competition.- Misleading Advertisement: regarding the product of a competitor - Long-term loss leader: price strategy by underrating smaller competitors in the short term, bringing the smaller businesses to engage to a price war.

- Sugging A disguised marketing process that uses general questions in a survey or questionaries to determine the interest and needs of the consumers. And then offer the consumer a product that the business believes cater to the consumers needs. Selling under the Guidelines of Survey (research), the ethical issue here is if the consumer is aware of the business attempting to promote and sell their product. Sugging is regarded as unethical as the

consumers are not aware that they have been encouraged to buy the product which the business tends to sell.

MARKETING PROCESSA Marketing PlanPlanning is important to a business because it allows it to examine its current position within the marketing consider opportunities to strengthen that position and determine the most effective method of implementing the required change. A marketing plan may be developed by the marketing department of a business, although smaller business may outsource this activity and the employ services of a marketing firm. The Marketing process involves investigating the common elements involved in developing a marketing plan. These elements exist in all marketing plan regardless of the business’s size, activity or legal structure. The Elements of a Marketing Plan (E.SMEIDI)

• Situational analysisSWOT is the strengths, weaknesses, opportunities and threats of a business. Changes in the external environment can dramatically alter the course of a business. For this reason, businesses constantly monitor these changes, looking for opportunities to exploit and any threats to avoid. The internal forces of the business are operated completely by the business, and it is the businesses duty to manage the strength and the weakness of the business.

– SWOT, product life cycleA product life cycle consists of the stages a product passes through: Introduction, growth, maturity and decline.

Introduction stage- Product brand and reliability are established- Price is often lower than the competitors in order to gain market foothold- Promotion directed at early buyers and users occurs, and communications seek to educate

potential customers about the merits of the new product.- Distribution is selective, which enables consumers to gradually form an acceptance of the

product.

Growth Stage- Product quality is maintained and improved and support services may be added.

- Price per unit of production is maintained as the firm enjoys increased consumer demand and a growing market share.

- Promotion now seeks a wider audience.- Distribution channels are increased as the product becomes more popular.

Maturity Stage- Product features and packaging try to differentiate the product from those of competitors.- Price may need to be adjusted downwards to hold off competitors and maintain market share.- Promotion continues to suggest the product is tried and true — it’s still the best.- Distribution incentives may need to be offered to encourage preference over rival products.

Decline Stage- Product maintained with some improvements or rejuvenation. Cut the losses by selling it to

another business.- Price is reduced to sell the remaining stock.- Promotion discontinued.- Distribution channels reduced and product offered to a loyal segment of the market only. • Market researchMarket research is the process of systematically collecting, recording and analysing information concerning a specific marketing problem.

There are two kinds of Data: Primary and Secondary. Primary are facts and figures collected from original sourced for the purpose of the specific research problem, for example surveys and focus groups, as for Secondary sources are Facts and figures collected by some other person or organisations, for example research reports and ABS. • establishing market objectives Marketing objectives are the realistic and measurable goals to be achieved through the marketing Plan. The three common marketing objectives include:- Increasing the market share- Expanding the product range- Maximising costumer service

• identifying target marketsA target market is a group of present and potential customers to which the business wish to sell their products to. A business need to be able to identify their target market so that they are aware of the needs and wants of their targeted group. A business can choose:- Mass Marketing approach: Where it is a large range of consumers- Market segmentation: When the market is divided into groups of people who share the same

characteristics- Niche Market Approach: For specific needs. • developing marketing strategies

ProductThe business need to be able to decide on the products design, labelling, brand name etc. Customers will buy products that not only satisfy their needs but also provide them with intangible benefits such as feeling security, prestige, satisfaction or influence.

PriceBusiness need to be able to settle the right price for the product it is selling. When the price is too cheap, the costumer would consider it to be a low quality product as if the price was too high the costumer would consider it to be too pricy for such a product.

PromotionPromotion strategies are detailed methods used by the business to inform, persuade and remind the costumers about the product the business may be selling. The changes in technology have a significant effect on how business promote their business. The internet has become an effective way to advertise a product.

PlaceAn element in the marketing mix with deals with how the product is distributed to the target consumers

• Implementation, monitoring and controlling Implementing the marketing plan means to putting the marketing strategies into operation. Once the marketing plan has been implemented, it must be carefully monitored and controlled. Monitoring means to checking and observing the actual progress of a marketing plan. Controlling involves the comparison and planned performance against actual performance and talking corrective action to make sure the objectives are attained. When evaluation alternative marketing strategies, a business must develop a financial forecast that details the cost and revenues for each strategy – developing a financial forecast; comparing actual and planned results, revising the marketing strategy

Developing a financial forecast requires two steps:Step 1: Estimate the cost of the marketing plan.Step 2: Estimate the revenue (sales) the marketing plan expected to generate.

Three key performance indicators used to measure the success of the marketing plan are:sales analysismarket share analysisMarketing profitability analysis.

The marketing plan can be revised by either:changes in the marketing mixnew product development

Product deletion.

MARKETING STRATEGIES• Market segmentation, product/service differentiation and positioning

The demographic segmentation is dividing the total market according to a particular feature of the population. The geographic is dividing the total market according to the geographic location. The psychographic segmentation is dividing the total market according to the characteristics of people. And the Behavioural segmentation is dividing the total market according to the relationship of the costumer with the product.

• Products – Goods and/or servicesTangible: When the customer pays for something and they receive somethingIntangible: When the customer pays for something and receives pleasure, entertainment or some kind of service. Products consist of goods/or and services – branding A brand is a name, term, symbol, design or any combination that identifies a specific product and distinguishes it from its competition.Branding provides benefits for both buyers and sellers. Branding helps consumers:

Identify the specific products that they like. Without branding, a consumer selection would be quite random because buyers could have no guarantee that they were purchasing what they preferred.

Evaluate the quality of products, especially when a consumer lacks the expertise to judge a product’s features.

Reduce their level of perceived risk of purchase. A respected and trusted brand will provide reassurance that the consumer is making the right choice.

Gain a psychological reward that comes from purchasing a brand that symbolises status and prestige.

Branding helps businesses: Gain repeat sales because consumers recognise the business’s products Introduce new products onto the market because consumers are already familiar with the

business’s existing brands With their promotional activities because the promotion of one product indirectly promotes

all other similarly branded products Encourage customer loyalty. This has the added benefit to the business of being able to

charge a higher price for the product.

– Packaging

Packaging involves more than simply putting the product in a container or placing a wrapper around

it. Packaging involves the development of a container and the graphic design for a product. For

example, tasteful packaging can create an image of luxury, sensuality and exclusiveness, helping to

promote the product. In addition, packaging:

preserves the product protects the product from damage or tampering

attracts consumers’ attention

divides the product into convenient units

assists with the display of the product

makes transportation and storage easier

• Price including pricing methods Price refers the amount of money the customer is willing to offer in exchange for a product. Many businesses have difficulty choosing the right price for a product. A the customer impression of pricing is different when the pricing is too high or too low– Cost, market, competition-based – pricing strategies

Cost-based

As a starting point, the business determines the total cost of producing (or purchasing) one unit of the product. The business then adds an amount to cover additional costs (overheads such as interest payments, insurance, transport) and to also provide an adequate profit margin. That amount is referred to as the mark-up and is usually expressed as a percentage. The total of the cost plus the mark-up is the selling price of the product. Cost-based pricing is a very simple and straightforward pricing policy and is used mainly by wholesalers and retailers. However, it has two major drawbacks.

1. Difficulty in accurately determining an appropriate mark-up percentage. If the percentage is too high, the product will be overpriced and possibly not sell. If the mark-up is too low, the business is losing profit they could have easily obtained.

2. The product is priced after production and associated costs are incurred without taking into account the other elements of the marketing mix or the state of the market.

Market-based Instead of using costs to determine price, businesses sometimes set prices according to the level of supply and demand — whatever the market is prepared to pay. Market-based pricing is a method of setting prices according to the interaction between the levels of supply and demand. When demand for a product is greater than its supply, there will be a shortage in the market. This will force up the price of the good. For example, if 100 prospective buyers attend an art auction but there is only one particular type of painting (product) offered for sale, the price will rise. As the price rises, buyers will progressively drop out of bidding until the final buyer is successful. Conversely, when the

supply of a product is greater than its demand, a surplus will exist in the market. The price of the product will consequently fall. This is why bananas are cheaper, for example, during the summer months.

Competition-basedCompetition-based pricing is often used when there is a high degree of competition from businesses producing similar products. Once a business has established a base price, it can then decide to choose a price either:

Below that of competitors. This policy of undercutting the competition is often used as a way of breaking into an established market.

Equal to that of competitors. Following the price established by a price leader is an easy option for a business because it avoids having to undertake market research to find out what the consumer would actually pay. As well, it also avoids the risks of price competition/war.

Above that of competitors. This is a favoured practice by businesses who wish consumers to perceive the product as superior, which appeals to the status-conscious buyer.

– Pricing Strategies Price Skimming

Price skimming occurs when a business charges the highest possible price for the product during the introduction stage of its life cycle.

Price PenetrationPrice penetration occurs when a business charges the lowest price possible for a product. The strategy aims to quickly achieve a large market share for a product — sometimes called ‘mass-market pricing’. The objective is to sell a large number of products during the early stages of the life cycle and thus discourage competitors from entering the market or from taking market share from existing businesses. The main disadvantage of this strategy is that it is more difficult to raise prices significantly than it is to lower them. Consequently, a business may be locked into low sales revenue until it substantially modifies the product at a later stage.

Loss LeadersA loss leader is a product sold at or below cost price. For a special promotion, many businesses, especially retail stores, deliberately sell a product at a loss to attract customers to the shop.This successful pricing strategy is often used when the business:

Is overstocked or a product is slow to sell. wants to increase the traffic flow in the expectation of gaining new customers Wants to build a reputation of having low prices.

Price PointsPrice points (or price lining) are selling products only at certain predetermined prices. This pricing strategy is used mainly by retailers, especially clothing stores and boutiques. Using this pricing strategy makes it easier for the customer to find the type of product they need. It also makes it easier for the business to encourage the customer to ‘trade up’ to a more expensive model.

– Price and quality interaction The price-quality relationship helps create an image of the product to the customers. Therefore, if a business charges a low price for a product, customers may perceive the product as ‘cheap’. Charge a high price and the product develops an aura of quality and status. This price–quality relationship does not apply to all products. Usually, high-priced and infrequently purchased items such as cars,

homes and furniture display a stronger price–quality relationship than frequently purchased products such as grocery items.

• Promotion

Promotion describes the methods used by a business to inform, persuade and remind a target

market about its products.

Promotion attempts to: attract new customers by heightening awareness of a particular product increase brand loyalty by reinforcing the image of the product encourage existing customers to purchase more of the product provide information so customers can make informed decisions Encourage new and existing customers to purchase new products.

– Elements of the promotion mix The elements of promotion mix include advertising, personal selling and relationship marketing, sales promotions, publicity and public relations - Advertising : A successful advertising campaign can result in increased sales and profit for a

business. The main advantage of advertising is that it provides businesses with the flexibility to reach an extremely large audience or to focus on a small, distinct target market segment.The six main advertising media includes: Mass marketing — television, radio, newspapers and magazines Direct marketing catalogues — catalogues mailed to individual households Telemarketing — the use of the telephone to personally contact a customer E-marketing — the use of the internet to deliver advertising messages Social media advertising — online advertising using social media platforms such as Facebook

and Twitter Billboards — large signs placed at strategic locations.

Which type of advertising media a business selects depends on a number of variables including the: Type of product and its positioning Size of the target market and its characteristics

Business’s marketing budget

Cost of the advertising medium

Product’s position on the product life cycle.

- Personal Selling : Personal selling involves the activities of a sales consultant directed to a customer in an attempt to make a sale; it involves the human aspect of promotion.

Although personal selling is an expensive promotional method, businesses are willing to spend the

money on it because it offers three unique advantages. They are: The message can be modified to suit the individual customer’s circumstances.

The individualised assistance to a customer can create a long-term relationship resulting in repeat sales.

The sales consultant can provide after-sales customer service in relation to product features, installation, warranties and servicing.

- Relationship marketing: Customers want more individualised treatment. In response, businesses are looking for ways to develop long-term, cost-effective and strong relationships with individual customers, a process known as relationship marketing. The ultimate aim is to create customer loyalty by meeting the needs of customers on an individual basis thereby creating reasons to keep customers coming back. E.g. Woolworths Everyday Rewards.

- Sales promotion

A business may decide to offer a direct inducement to customers in an attempt to sell more of its

product. This type of promotion is referred to as sales promotion and aims to: Entice new customers Encourage trial purchase of a new product Increase sales to existing customers and repeat purchases.

Sales promotion techniques are used primarily to increase the effectiveness of other promotion

activities, especially advertising. Examples of special promotions include:1. Coupons . These offer discounts of a stated amount on particular items at the time of

purchase. Coupons work best for new or improved products.2. Premiums. A premium is a gift that a business offers the customer in return for using the

product. For example, a food producer may offer customers a cookbook as a premium.3. Refunds . Part of the purchase price is given back to those customers who send in a voucher

with a specific proof of purchase. In recent years, refunds have become widely used on power tools and kitchen appliances.

4. Samples . A sample is a free item or container of a product. For example, when you visit a supermarket, you will often find a sales representative encouraging you to taste a product such as cheese, fruit, biscuits or cake.

5. Point-of-purchase displays . Special signs, displays and racks are supplied and installed by the manufacturer in retail outlets. They are usually located at the end of aisles in supermarkets to gain consumer attention and make more efficient use of floor space.

- Publicity and Public relations

Publicity is any free news story about a business’s products. It differs from advertising in that it is

free and its timing is not controlled by the business. The main aims of publicity are to: Enhance the image of the product Raise awareness of a product Highlight the business’s favourable features Help reduce any negative image that may have been created.

There are four main ways in which public relations activities can assist a business in achieving its

objective of increased sales:1. Promoting a positive image: reinforcing the favourable attitudes and perceptions consumers

have regarding the business’s reputation

2. Effective communication of messages: using advertising, sales promotions, publicity and personal selling to convey information about the business and its products

3. Issues monitoring: protecting sales by providing an early warning of public trends that could affect the business’s sales. Remedial action can be taken before much harm is done to sales.

4. Crisis management: protecting a business’s reputation as a result of negative or unfavourable rumours and adverse publicity, which, if left unchecked, might result in a loss of sales

– The communication process

Marketing managers must be able to communicate clearly, efficiently and succinctly to their target

markets. If the communication process becomes distorted or inefficient, the message becomes

distorted. The resulting miscommunication may mean lost sales. Without effective communication,

promotion is wasted.

Marketing managers can use a variety of channels to communicate a message. A channel is any

method used for carrying a message. Two of the most common channels used for promotional

communication include print and electronic media advertising.

– Opinion leaders, word of mouth An opinion leader is a person who influences others. Their opinions are respected, and they are often sought out for advice. Businesses are increasingly using social media platforms such as Facebook and Twitter to engage in a form of word-of-mouth communication. Friends’ recommendations can be a powerful influence, especially when there are many competing products from which to choose.

• Place/distribution – Distribution channelsChannels of distribution or marketing channels are the routes taken to get the product from the business to the customer. This process usually involves a number of intermediaries, such as the wholesaler, broker, agent or retailers. Apart from the retailer, the other intermediaries are often ‘invisible’, with the customer knowing very little about their role and operation.The four mostly common used channels of distribution are:

Producer to customer Producer to retailer to customer Producer to wholesaler to retailer to customer’ Producer to agent to wholesaler to retailer to customer

Innovative distribution methods: non-store retailingTwo of the most rapidly non store retailing is:

Telemarketing Internet Marketing

– channel choice

A business can decide to cover the market in one of three ways as follows, the difference being the

intensity of coverage.1. Intensive distribution. This occurs when the business wishes to saturate the market with its

product. Customers can shop at local outlets and be able to purchase the product. Many convenience goods, such as milk, lollies and newspapers, are distributed this way.

2. Selective distribution. This involves using only a moderate proportion of all possible outlets. Clothing, furniture and electrical appliances are often distributed using this method. The customer is prepared to travel and seek out a specific retail outlet that stocks a certain brand.

3. Exclusive distribution. This is the use of only one retail outlet for a product in a large geographic area. This method of distribution is commonly used for exclusive, expensive products.

– Physical distribution issues Physical distribution is all those activities concerned with the efficient movement of the products from the producer to the customer.

– Transport, warehousing, inventory The method of transportation a business uses will largely depend on the type of product and the degree of service the business wishes to provide. The four most common methods of transportation are rail, road, sea and air. Warehousing is a set of activities involved in receiving, storing and dispatching goods. A warehouse acts as a central organising point for the efficient delivery of products. The goal of inventory is to find the correct balance between these two situations.

• People, processes and physical evidenceThe Three P’s applicable for services:

People- As services are performed by people, it is essential that the business use appropriately recruited, qualified and trained employees. The people element refers to the quality of interaction between the customer and those within the business who will deliver the service. Consumers base their perceptions and make judgements about a business based on how the employees treat them, for e.g. Restaurants and Hotels.

Process- Processes refers to the flow of activities that a business will follow in its delivery of a service.

Physical Evidence- Physical evidence refers to the environment in which the service will be delivered. It also includes materials needed to carry out the service such as signage, brochures, calling cards, letterheads, business logo and website.

• E-marketing E-marketing (electronic marketing) is the practice of using the internet to perform marketing activities. The main technologies presently available for e-marketing include web pages, podcasts, SMS, blogs and Web2.0.

• Global marketing – Global branding

We are surrounded by global products all carrying global brand names. Global branding is the

worldwide use of a name, term, symbol or logo to identify the seller’s products.

Businesses are increasingly using global branding for a number of reasons: It can be cost effective because one advertisement can be used in a number of locations. It provides a uniform worldwide image. The successful brand name can be linked to new products being introduced into the market.

– Standardisation A standardised approach is a global marketing strategy that assumes the way the product is used and the needs it satisfies are the same the world over

– Customisation A customised approach is a global marketing strategy that assumes the way the product is used and the needs it satisfies are different between countries. For example, McDonalds serves beer in France and Germany, sake in Japan and noodles in the Philippines.

– Global pricing A global business can implement one of the three global pricing strategies:

Customised Pricing: Customised pricing occurs whenever consumers in different countries are charged different prices for the same product.

Market Customised Pricing: Market-customised pricing sets prices according to local market conditions.

Standard Worldwide Price: Standardised pricing is the practice of charging customers the same price for a product anywhere in the world.

– Competitive positioningCompetitive positioning relates to how a business will differentiate its products. It centres on how a business will carve out a place in the competitive marketing environment. As in a domestic market, a global business must clearly show how its products are better than the competitors’ products. Without differentiation, it takes more time, money and effort to encourage potential customers to purchase a business’s products. To differentiate successfully, and avoid competing on price only — a difficult situation to sustain over the long term — the business should strive to develop product leadership, positive customer relationships and operational excellence.