Marketing Ingenuity in the 21st century As well as the standard four P's (Product, Pricing, Promotion and Place), services marketing calls upon an extra three, totaling seven and known together as the extended marketing mix. These are: People: Any person coming into contact with customers can have an impact on overall satisfaction. Whether as part of a supporting service to a product or involved in a total service, people are particularly important because, in the customer's eyes, they are generally inseparable from the total service . As a result of this, they must be appropriately trained, well motivated and the right type of person. Fellow customers are also sometimes referred to under 'people', as they too can affect the customer's service experience, (e.g., at a sporting event). Process: This is the process(es) involved in providing a service and the behaviour of people, which can be crucial to customer satisfaction. Physical evidence: Unlike a product, a service cannot be experienced before it is delivered, which makes it intangible. This, therefore, means that potential customers could perceive greater risk when deciding whether to use a service. To reduce the feeling of risk, thus improving the chance for success, it is often vital to offer potential customers the chance to see what a service would be like. This is done by providing physical evidence, such as case studies, testimonials or demonstrations. Four New Ps: Personalization: It is here referred customization of products and services through the use of the Internet. Early examples include Dell on-line and Amazon.com, but this concept is further extended with emerging social media and advanced algorithms. Emerging technologies will continue to push this idea forward. Participation: This is to allow the customer to participate in what the brand should stand for; what should be the product directions and even which ads to run. This concept is laying the foundation for disruptive change through democratization of information. Peer-to-Peer: This refers to customer networks and communities where advocacy happens. The historical problem with marketing is that it is “interruptive” in nature, trying to impose a brand on the customer. This is most apparent in TV advertising. These “passive customer bases” will ultimately be replaced by the “active customer communities”. Brand engagement happens within those conversations. P2P is now being referred as Social Computing and is likely to be the most disruptive force in the future of marketing. Predictive modeling: This refers to algorithms that are being successfully applied in marketing problems (both a regression as well as a classification problem). Scope: * Breadth -- number of product lines in a range. * Depth -- number of product items in a product line. Marketing communications Marketing communications breaks down the strategies involved with marketing messages into categories based on the goals of each message. There are distinct stages in converting strangers to customers that govern the communication medium that should be used. Advertising: Advertisement in a rail station in Berlin.Paid form of public presentation and expressive promotion of ideas Aimed at masses Manufacturer may determine what goes into advertisement Pervasive and impersonal medium Functions and advantages of successful advertising Task of the salesman made easier Forces manufacturer to live up to conveyed image Protects and warns customers against false claims and inferior products Enables manufacturer to mass-produce product Continuous reminder Uninterrupted production a possibility Increases goodwill Raises standards of living (or perceptions thereof) Prices decrease with increased popularity Educates manufacturer and wholesaler about competitors' offerings as well as shortcomings in their own. Advertising Objectives: Maintain demand for well-known goods Introduce new and unknown goods Increase demand for well-known goods/products/services Requirements of a good advertisement: Attract attention (awareness) Stimulate interest Create a desire Bring about action Eight steps in an advertising campaign: Market research Setting out aims Budgeting Choice of media (television, newspaper, radio) Choice of actors (New Trend) Design and wording Co-ordination Test results First page of this study References Marketing Management: Strategies and Programs", Guiltinan et al, McGraw Hill/Irwin, 1996 Wikipedia.org

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