Category Definition/ Explanation Typical Marketing Decisions

• Product design – features, quality

• Product assortment – product range,
product mix, product lines
A product refers to an item that
• Branding
satisfies the consumer's needs or
• Packaging and labeling
wants.
Product • Services (complementary service,
Products may be tangible (goods) or after-sales service, service level)
intangible (services, ideas or • Guarantees and warranties
experiences). • Returns
• Managing products through the life-
cycle
Price refers to the amount a customer
pays for a product.
• Price strategy
Price may also refer to the sacrifice
• Price tactics
consumers are prepared to make to
• Price-setting
acquire a product.
• Allowances – e.g. rebates for
Price (e.g. time or effort) distributors
Price is the only variable that has • Discounts – for customers
implications for revenue. • Payment terms – credit, payment
methods
Price also includes considerations
of customer perceived value.

• Strategies such as intensive

distribution, selective distribution,
exclusive distribution
• Franchising;
Refers to providing customer access • Market coverage
Place Considers providing convenience for • Channel member selection and
consumer. channel member relationships
• Assortment
• Location decisions
• Inventory
• Transport, warehousing and logistics
Promotion refers to marketing • Promotional mix - appropriate
communications balance of advertising, PR, direct
Promotion May comprise elements such marketing and sales promotion
as: advertising, PR, direct marketing • Message strategy - what is to be
and sales promotion. communicated
 • Channel/ media strategy - how to
reach the target audience
• Message Frequency - how often to
communicate

Product refers to what the business offers for sale and may include products or services. Product
decisions include the "quality, features, benefits, style, design, branding, packaging, services,
warranties, guarantees, life cycles, investments and returns".
Price refers to decisions surrounding "list pricing, discount pricing, special offer pricing, credit
payment or credit terms". Price refers to the total cost to customer to acquire the product, and
may involve both monetary and psychological costs such as the time and effort spended in
acquisition.
Place is defined as the "direct or indirect channels to market, geographical distribution, territorial
coverage, retail outlet, market location, catalogues, inventory, logistics and order fulfilment".
Place refers either to the physical location where a business carries out business or the
distribution channels used to reach markets. Place may refer to a retail outlet, but increasingly
refers to virtual stores such as "a mail order catalogue, a telephone call centre or a website".
Promotion refers to "the marketing communication used to make the offer known to potential
customers and persuade them to investigate it further". Promotion elements include "advertising,
public relations, direct selling and sales promotions.

Category Definition/ Explanation Typical Marketing Decisions

• Facilities (e.g. furniture,

equipment, access)
The environment in which service • Spatial layout (e.g. functionality,
occurs. efficiency)
• Signage (e.g. directional signage,
The space where customers and service symbols, other signage)
Physical personnel interact. • Interior design (e.g. furniture,
evidence Tangible commodities (e.g. equipment, color schemes)
furniture) that facilitate service • Ambient conditions (e.g. noise,
performance. air, temperature)
• Design of livery (e.g. stationery,
Artifacts that remind customers of a
brochures, menus, etc.)
service performance.
• Artifacts: (e.g. souvenirs,
mementos, etc.)
Human actors who participate in • Staff recruitment and training
service delivery. • Uniforms
Service personnel who represent the • Scripting
People
company's values to customers. • Queuing systems, managing waits
• Handling complaints, service
Interactions between customers. failures
 Interactions between employees and • Managing social interactions
customers.

• Process design
• Blueprinting (i.e. flowcharting)
service processes[29]
• Standardization vs customization
decisions
• Diagnosing fail-points, critical
incidents and system failures
The procedures, mechanisms and flow
• Monitoring and tracking service
Process of activities by which service is
performance
delivered.
• Analysis of resource
requirements and allocation
• Creation and measurement of key
performance indicators (KPIs)
• Alignment with Best Practices
• Preparation of operations
manuals

People are essential in the marketing of any product or service. Personnel stand for the service.
In the professional, financial or hospitality service industry, people are not producers, but rather
the products themselves. When people are the product, they impact public perception of an
organization as much as any tangible consumer goods. From a marketing management
perspective, it is important to ensure that employees represent the company in alignment with
broader messaging strategies. This is easier to ensure when people feel as though they have been
treated fairly and earn wages sufficient to support their daily lives.
Process refers to a "set of activities that results in delivery of the product benefits". A process
could be a sequential order of tasks that an employee undertakes as a part of their job. It can
represent sequential steps taken by a number of various employees while attempting to complete
a task. Some people are responsible for managing multiple processes at once. For example, a
restaurant manager should monitor the performance of employees, ensuring that processes are
followed. They are also expected to supervise while customers are promptly greeted, seated, fed,
and led out so that the next customer can begin this process.
Physical evidence refers to the non-human elements of the service encounter, including
equipment, furniture and facilities. It may also refer to the more abstract components of the
environment in which the service encounter occurs including interior design, colour schemes and
layout. Some aspects of physical evidence provide lasting proof that the service has occurred,
such as souvenirs, mementos, invoices and other livery of artifacts. According to Booms and
Bitner's framework, the physical evidence is "the service delivered and any tangible goods that
facilitate the performance and communication of the service". Physical evidence is important to
customers because the tangible goods are evidence that the seller has (or has not) provided what
the customer was expecting.
Factors influencing Pricing

1. Stages of Business
2. Stages of Product Life Cycle
3. Type of Products
4. Government Support
5. Availability of Finance
6. Competition
7. Target Market
8. Target Audience
9. Demand of Products

Recent Trends in Distribution:

Horizontal Marketing System:

A Horizontal Marketing system is a form of distribution channel wherein two or more companies
at the same level unrelated to each other come together to gain the economies of scale. In other
words, Horizontal marketing system is the merger of two unrelated companies who have come
together to exploit the market opportunities.

Generally, this type of marketing system is followed by companies who lack in capital, human
resources, production techniques, marketing programs and are afraid of incurring the huge
losses. In order to overcome these limitations, the companies join hands with other companies
who are big in size either in the form of joint venture –that can be temporary or permanent, or
mergers to sustain in the business.

Horizontal marketing system has gained popularity in the recent times due to an immense
competition in the market where everybody is striving to gain a good position in the market
along with huge profits.

In this marketing system, the collaboration can be between:

▪ Two or more Manufacturers- With an objective of making optimum utilization of scarce

resources.
▪ Two or more Wholesalers-With the objective of covering a larger area of the distribution of
goods and services.
▪ Two or more Retailers- With the objective of providing bulk quantities in a particular area.
 Examples of Horizontal Marketing:

1. Nike and Apple have entered into a partnership, with the intent to have a Nike+ footwear in
which the iPod can be connected with these shoes that will play music along with the display of
information about time, distance covered, calories burned and heart pace on the screen.
2. Johnson & Johnson, a health care company, have joined hands with Google, with an objective of
having a robotic-assisted surgical platform. That will help in the integration of advanced
technologies, thereby improving the healthcare services.

A horizontal marketing system is a distribution channel arrangement whereby two or more

organizations at the same level join together for marketing purposes to capitalize on a new
opportunity. For example: a bank and a supermarket agree to have the bank’s ATMs located at
the supermarket’s locations; two manufacturers combining to achieve economies of scale
otherwise not possible with each acting alone to meet the needs and demands of a very large
retailer; or two wholesalers joining together to serve a particular region at a certain time of year.
A horizontal marketing system is a merger of firms on the same level in order to pursue
marketing opportunities. The firms combine their resources, such as production capabilities and
distribution, in order to maximize their earnings potential.
An example is Apple and Starbucks, who announced a music partnership in 2007. The purpose
of this partnership was to allow Starbucks' customers to wirelessly browse, search, preview, buy,
and download music from iTunes Store onto their iPod touch, iPhone, or PC or Mac
running iTunes. Apple’s leadership in digital music, together with the unique Starbucks
experience, created a partnership that offered customers a world class digital music experience.
Apple benefits from this partnership with higher iTunes sales as Starbucks has a vast and loyal
customer base. When Apple first introduced its iTunes Store, it had hoped to sell one million
songs in six months, but to its surprise, sold over one million songs within the first six days of
launching. With such loyal online music consumers, Starbucks benefits from higher sales,
increase in market share, and stronger customer loyalty. This example demonstrates how two
companies can join forces to follow a new market opportunity. This opportunity
allowed Starbucks and Apple to both achieve greater results than otherwise would have been
possible if they somehow attempted this strategy independently.
Examples of firms and organisations from India who adopted Horizontal Marketing
System: ?????

Third Party Delivery Channel

Third-party logistics (abbreviated 3PL, or sometimes TPL) in logistics and supply chain
management is a company's use of third-party businesses to outsource elements of the
company's distribution, warehousing, and fulfillment services. Third-party logistics providers
typically specialize in integrated operation, warehousing and transportation services which can
be scaled and customized to customers' needs based on market conditions, such as the demands
and delivery service requirements for their products and materials. Often, these services go
beyond logistics and include value-added services related to the production or procurement of
goods, i.e., services that integrate parts of the supply chain. When this integration occurs, the
provider is then called a third-party supply chain management provider (3PSCM) or supply chain
management service provider (SCMSP). 3PL targets particular functions within supply
management, such as warehousing, transportation, or raw material provision.
The global third-party logistics market is predicted to grow at around 5 % CAGR during 2016 to
2024 (forecast period). Its companies operate for the shipping industry to supervise logistic
undertakings (forecasting, warehousing, & conveyance management software). The market will
attain a size of about USD 1, 054 billion by 2024.

Types:
Third-party logistics providers include freight forwarders, courier companies, as well as other
companies integrating & offering subcontracted logistics and transportation services. Hertz and
Alfredsson (2003) describe four categories of 3PL providers:

• Standard 3PL Provider: this is the most basic form of a 3PL provider. They would perform
activities such as, pick and pack, warehousing, and distribution (business) – the most basic
functions of logistics. For a majority of these firms, the 3PL function is not their main
activity.
• Service Developer: this type of 3PL provider will offer their customers advanced value-
added services such as: tracking and tracing, cross-docking, specific packaging, or providing
a unique security system. A solid IT foundation and a focus on economies of scale and scope
will enable this type of 3PL provider to perform these types of tasks.
• The Customer Adapter: this type of 3PL provider comes in at the request of the customer
and essentially takes over complete control of the company's logistics activities. The 3PL
provider improves the logistics dramatically, but does not develop a new service. The
customer base for this type of 3PL provider is typically quite small.
• The Customer Developer: this is the highest level that a 3PL provider can attain with
respect to its processes and activities. This occurs when the 3PL provider integrates itself
with the customer and takes over their entire logistics function. These providers will have
few customers, but will perform extensive and detailed tasks for them.
Outsourcing may involve a subset of an operation's logistics, leaving some products or operating
steps untouched because the in-house logistics is able to do the work better or cheaper than an
external provider. Another important point is the customer orientation of the 3PL provider. The
provider has to fit to the structures and the requirements of the company. This fit is more
important than the pure cost savings, like a survey of 3PL providers shows clearly: The customer
orientation in form of adaptability to changing customer needs, reliability and the flexibility of
third-party logistics provider were mentioned as much more important than pure cost savings.
Advantages
Cost and time savings
Logistics is the core competence of third-party logistics providers. Providers may have better
related knowledge and greater expertise than the producing or selling company, and may also
have more global networks enabling greater time and cost efficiencies.
The equipment and the IT systems of 3PL providers are constantly updated and adapted to match
the requirements of their customers and their customer’s suppliers. Producing or selling
companies often do not have the time, resources, or expertise to adapt their equipment and
systems as quickly.
Low capital commitment
If most or all operative functions are outsourced to a 3PL provider, there is usually no need for
the client to own its own warehouse or transport facilities, lowering the amount of capital
required for the client's business. This is particularly beneficial if a company's warehouse has
high variations in capacity utilization, leading to over purchasing of warehouse capacity and
reducing profitability.
Focus
Logistics outsourcing allows companies with limited logistics expertise to focus on their core
business. Increasing complexity in business suggests that companies benefit from not devoting
resources to areas in which they are not skilled.
Flexibility
Third-party logistics providers can provide higher flexibility for geographic distribution and may
offer a larger variety of services than clients could provide for themselves. This also allows
businesses to more predictably manage their resources including workforce size, and turn fixed
costs into variable costs.
Disadvantages
Loss of control
One disadvantage is the loss of control a client has by using third-party logistics. With outbound
logistics, the 3PL provider usually assumes communication and interactions with a firm's
customer or supplier. To mitigate this, some 3PL’s attempt to brand themselves as their clients,
such as applying clients' logos on their assets and dressing their employees like their clients'
employees.
IT
The IT systems of the provider and the client must be interoperable. Technology helps increase
visibility for the client by way of continuous status updates via Dispatch Management Software
and Electronic Data Interchange (EDI) which does involve a cost, but it can help avoid penalties
for delays and subsequent financial losses such as from not unloading freight in time.

New Trends in Third Party Delivery System

Horizontal Alliance
Raue & Wieland (2015) describe the example of horizontal alliances between logistics service
providers, i.e., the cooperation between two or more logistics companies that are potentially
competing. Logistics companies can benefit twofold from such an alliance. On the one hand,
they can "access tangible resources which are directly exploitable". This includes extending
common transportation networks, their warehouse infrastructure and the ability to provide more
complex service packages by combining resources. On the other hand, LSPs can "access
intangible resources, which are not directly exploitable". This includes know-how and
information and, in turn, innovativeness.
On-demand transportation is a relatively new term coined by 3PL providers to describe their
brokerage, ad-hoc, and "flyer" service offerings. On-demand transportation has become a
mandatory capability for today's successful 3PL providers in offering client specific solutions to
supply chain needs.
These shipments do not usually move under the "lowest rate wins" scenario and can be very
profitable to the 3PL that wins the business. The cost quoted to customers for on-demand
services are based on specific circumstances and availability and can differ greatly from normal
"published" rates.
On Demand Transportation
On-demand transportation is a niche that continues to grow and evolve within the 3PL industry.
Specific modes of transport that may be subject to the on-demand model include (but are not
limited to) the following:

• FTL, or Full Truck Load

• LTL, or Less-than Truckload
• Hotshot (direct, exclusive courier)
• Next Flight Out, sometimes also referred to as Best Flight Out (commercial airline shipping)
• Expedited services: (direct, exclusive courier) Immediate delivery or "just-in-time" (JIT)
• International Expedited
New brokers tend to use what has become known as "smile and dial" brokering that essentially
work as telemarketing call centers. Brokers have no obligation to successfully ship all loads (as
opposed to contract logistics providers) and almost all sales representatives are heavily (and
100%) commissioned, and much of the workers' day is spent cold-calling sales leads. Smile-and-
dial brokerages typically require a 15% gross profit margin (the difference between what the
shipper pays the brokerage and what the brokerage pays the carrier), and the commission
compensation scheme means that the turnover of personnel in the call centers approaches 100%
per year.
For the occasional shipper, smile-and-dial brokerages can provide a convenient way to have
goods shipped. But the lack of deep expertise due to constant turnover, combined with the 15%
pricing margins, mean that a reasonably capable traffic professional can obtain transportation
services much more economically and reliably, while a shipper needing delivery as soon as
possible, from air freight, air charter, ground expedited, flatbed services, refrigerated, LTL or full
truckload, liftgate, van or vehicle. With JIT delivery the price will be secondary to on-demand as
soon as possible delivery.
Lead logistics providers
3PL providers without their own assets are called lead logistics providers. Lead logistics
providers have the advantage that they have specialized industry expertise combined with low
overhead costs, but lower negotiating power and fewer resources than a third-party provider has
based on a normally big company size, a good customer base and established network systems.
3PL providers may sacrifice efficiency by preferring their own assets in order to maximize their
own efficiency. Lead logistics providers may also be less bureaucratic with shorter decision-
making cycles due to the smaller size of the company.
 Multichannel Marketing
Multichannel marketing is the blending of different distribution and promotional channels for the
purpose of Marketing. Distribution channels range from a retail storefront, a website, or a mail-
order catalogue. Multichannel marketing is about choice. The objective of the companies doing
the marketing is to make it easy for a consumer to buy from them in whatever way is most
appropriate.
To be effective, multichannel marketing needs to be supported by good supply chain
management systems, so that the details and prices of goods on offer are consistent across the
different channels. It might also be supported by detailed analysis of the return on
investment from each different channel, measured in terms of customer response and conversion
of sales. The contribution each channel delivers to sales can be assessed via Marketing Mix
Modeling or via attribution modeling. Some companies target certain channels at different
demographic segments of the market or at different socio-economic groups of consumers.
Multichannel marketing allows the retail merchant to reach its prospective or current customer in
a channel of his/ her liking.
Companies that sell branded products and services through local businesses market over both
online and offline channels to local audiences. Online and offline multichannel marketing
campaigns can either inform one another or are executed in isolation. A proportion of companies
use their online marketing efforts to inform their offline advertising (i.e. they test keywords
online to understand if they fit with customer intent before printing them in offline ads).
While multichannel marketing focuses primarily on new media platforms in marketing,
traditional approaches use old media such as print sources, telemarketing, direct mail and
broadcasting stations such as radio and television. Multichannel marketing does not only use web
2.0 forms but also integrates media convergence models, targeting customer interaction through
different platforms such as via text messaging, on a website, email, online video
campaigns, GPS to track the location of a customer and their proximity to the product or service.
Being able to reach out to customers directly is an important marketing strategy because it
is convenient and enhances direct customer interaction.
Some of the long term benefits of this style of marketing include:

• Better management of results and sales: Using many communicative platforms to reach
the audience increases the chances of receiving feedback from a variety of customers on the
overall performance. This feedback gives companies an idea of what the customer wants and
what they can improve upon
• Higher revenues: The more diverse platforms used in trying to reach customers, the more
the potential customers are likely to reach out to purchase goods and services. If the
company advertises its brand only on the [internet], it will be very hard to capture the
attention of potential customers who do not use the internet regularly and rely on other
mediums such as the [television] for example.
• Better understanding of customers: By the response from customers, it is easier to
understand what they expect from a product or service and how a brand can be improved. To
satisfy the needs of a niche, it is necessary to identify the channels and platforms which work
for a certain group.
• Increased brand visibility and reach: About 36% of shoppers search products on one
channel but purchase the product through a different channel.

Multilevel Marketing
Definition: The Multilevel Marketing is the marketing strategy wherein the direct sales
companies encourage its existing distributors to recruit new distributors to facilitate the sale of
goods and services. The distributor is compensated not only for the sales generated by him but
also gets a percentage of sales revenue of the other distributor that he recruits.

Thus, a multilevel marketing is a type of direct selling wherein the distributor sells the product
via relationship referrals and word-of-mouth marketing. Here, the salespersons or distributor not
only sell the products but also encourages others to join the company. The recruits are called as
the participant’s “Downline” or distributor’s “Downline”. Example, Tupperware, and
Amway are the direct sales companies that use the multilevel marketing.

The multilevel marketing is also called as a network marketing, referral marketing or pyramid
selling. Though this is a legitimate business strategy, it is subject to criticism and lawsuits
because of its similarity to the illegal pyramid schemes. Since the compensation is determined on
the basis of recruitments done by the distributors, there are chances that more emphasis is laid on
the recruitment and less on the product sales. Hence, there is more emphasis on the recruitment
of others over the actual sales.

Examples:

The top 3 MLM business are:

• Avon Products, Inc., founded in 1986. Avon has annual sales of $11.3 billion and over
6.5 million sales associates. Avon markets various beauty products, jewelry, and fashion
apparel.
• Amway, founded in 1959. Amway has annual sales of $10.9 billion and over 3 million
sales associates selling cosmetic, wellness and food and beverage products.
• Herbalife Ltd., founded in 1980. Herbalife has annual sales of $4.8 billion and has over
2.7 million sales associates. Products include cosmetics, personal care items and
nutritional supplements. In 2016 Herbalife was cleared of allegations of having a
fraudulent business model after an investigation by the FBI failed to find sufficient
evidence.

Multi-level market (MLM) or network marketing is an American institution. Companies

like Amway, Tupperware, Herbalife, Avon, Mary Kay and The Pampered Chef support
huge networks of distributors and recruits who sell every type of product from dietary
 supplements to kitchenware to beauty products. Salespeople are called independent
business owners (IBO) and generally work from their homes.

Examples of firms and organisations from India who adopted Multilevel Marketing
System: ?????

Vertical Marketing System

Definition: A Vertical Marketing system (VMS) comprises of the main distribution channel
partners- the producer, the wholesaler and the retailer who work together as a unified group to
serve the customer needs.

In conventional marketing system, the producer, wholesaler and the retailer worked separately
with the intention to maximize their profits even at the expense of one another. This led to the
unending conflicts between the channel partners resulting in less profits for the business as a
whole.

In order to overcome these conflicts, several firms have started using a vertical marketing system
wherein producers, wholesalers and retailers have joined hands with each other and are working
in unison towards the accomplishment of the business objective as a whole. This has led to the
increased profits for each involved in the channel of distribution.

Vertical Marketing System is further divided into three parts which are explained below:
1. Corporate Vertical Marketing System– In Corporate VMS, one member of the distribution
channel be it a producer, a wholesaler or a retailer Owns all the other Members of the
Channel, thereby having all the elements of production and distribution channel under a single
ownership. For example,: Amway is an American cosmetic company, which manufactures its
own product range and sell these products only through its authorized Amway stores. Here the
ownership of production and distribution is with the company itself.
2. Contractual Vertical Marketing System– In Contractual VMS, every member in the
distribution channel works independently and integrate their activities on a Contractual Basis to
earn more profits that are earned when working in isolation. The most common form of
Contractual VMS is Franchising. In franchising, the producer authorizes the distributor to sell
its product under the producer’s name against some annual license fee. For example, Mc-
Donalds, Dominos, Pizza Hut, etc. are all forms of the franchise which are working on a
contractual basis.
3. Administered Vertical Marketing System– Under Administered VMS, there is no contract
between the members of production & distribution channel but their activities do get influenced
by the Size and Power of any one of the member. In simple words, any powerful and influential
member of the channel dominate the activities of other channel members. For example, Big
brands like HUL, ITC, Procter& Gamble, etc. command a high level of cooperation from the
retailers in terms of display, shelf space, pricing policies, and promotional schemes.

Thus, through a vertical marketing system, the channel partners establishes a close contact with
each other and work in unison towards the accomplishment of common objectives thereby
enjoying more profits which they would have been earning when working alone.

Examples of firms and organisations from India who adopted Vertical Marketing System:
?????

Promotional Tools: ?????

Strategies for Advertising:

Influencer Strategy:

Influencer marketing (also influence marketing) is a form of marketing in which focus is placed
on influential people rather than the target market as a whole on social media. It identifies the
individuals who have influence over potential customers, and orients marketing activities around
these influencers. Some marketers use influencer marketing to establish credibility in the market,
others to create social conversations around their brand, and others to drive online or in-store sales
of their products. The influencer marketer can also take to marketing diversified products and
services leveraging, leveraging upon the credibility earned over time. The value which influencer
marketing creates can be measured in several ways. Some marketers measure earned media value,
others track impressions, and others track cost per action.

Influencer marketing derives its value from three sources:

• Social reach: influencers are able to reach millions of consumers through their social
channels and blogs.
• Original content: influencers produce original, and often effective, marketing content for the
brand.
• Consumer trust: influencers maintain strong relationships with their audience, who have a
certain level of trust in the influencer's opinions.

As a company's brands evolve in terms of marketing, the cost in relation to the possible benefits (i.e.,
purchase) it can receive is very important. The airing a television spot has a high cost, conversely, working
with an influencer has a negligible cost. If an influencer has 200,000 followers on their social media site,
and a company gives them a product specifically as a marketing tool, which they are to expose to their
audience, the company's financial outlay, by comparison, would be negligible. The company will have
spent less (the cost of the product), but exposed their product to a more focused group of followers (and
therefore potential purchasers) of the public figure.

As more people use the internet, more are making purchases online. This forces some companies to invest
more resources in their general advertising - on the internet, and on social networks in particular.
Marketing through social networks allows for an instantaneous purchase process; a person can see the
item and typically be connected to an online retailer immediately. This decrease between lag time - from
seeing the promoted item and being redirected to the product - is more effective for spontaneous
purchases.

Many influencers' social media presence is on both Instagram and Twitter.

• Steps:
1. Define target audience
2. Set objectives
3. Selection of most appropriate influencer
4. Preparation of Influencer Strategy
5. Selection of medium
6. Arrangement of resources
7. Implementation
8. Reviews
Participatory Strategy:

Participatory marketing is a mind shift that includes learning how to market with customers, rather
than at them. It requires new strategies and tactics to capture the hearts and minds of consumers.

It is a marketing strategy that directly engages consumers and invites and encourages them to
participate in the evolution of a brand or a brand experience. Rather than looking at consumers as
passive receivers of messages, engagement marketers believe that consumers should be actively
involved in the production and co-creation of marketing programs, developing a relationship with
the brand.Consumer engagement is when a brand and a consumer connect. According to Brad
Nierenberg, experiential marketing is the live, one-on-one interactions that allow consumers to
create connections with brands. Consumers will continue to seek and demand one-on-one,
shareable interaction with a brand.

Common Participatory tools:

• Blogs: For engagement marketing purposes, companies can share content on their own blogs
and participate as a commenter or content provider on relevant external blogs. Hosting a
campaign that gives prizes to the readers of external blogs for their participation in some
kind of contest is an example of an engagement marketing campaign aimed at external blogs.
• Social networking sites: Social networking sites (such as Facebook, LinkedIn, and Twitter)
are ideal for engagement marketing because they provide a way for people to interact with
brands and create a two-way dialogue between customers and companies. Most companies
maintain a presence on several of these sites. Some of these platforms have also created
specific types of online presences for companies. For example, Facebook introduced Fan
pages in 2007. Engagement outcomes such as sharing behaviours include motivations such as
enjoyment, self-efficacy, learning, personal gain, altruism, empathy, social engagement,
community interest, reciprocity, and reputation as well as social response to fan page cues
such as social interactive value, visual appearance and identity attractiveness of the branded
object Ideally, activations such as photo booths tied the event experience back to the user's
social channels.
• Webcasts: Differing from internal webcast meetings with a small, specific invitation list,
engagement marketing online events are aimed at a much larger and public audience. They
are typically available live or on-demand, which allows viewers to view content on their own
schedule. Similar to conferences, audience members can ask the speakers questions and
participate in polls during live webcasts.
• Email campaigns: One of the earliest online engagement marketing tools, email marketing
requires target audiences to opt-in to directly receive a marketer's emails. Companies can
also encourage individuals to share their messages virally, via the forwarding of emails to
colleagues, friends and family.
• Crowdsourcing: Crowdsourcing sites offer engagement marketing opportunities through
their open media contests. Crowdsourcing sites like these generate brand ambassadors as an
organic by product of the crowdsourcing process itself by encouraging users to share their
submissions on various social networking sites. By first engaging fans and consumers in the
act of shaping the brand identity itself, there is increased brand awareness and development
of brand relationships well before launching any official media campaign.

Product Display & Demonstration Strategy:

In marketing, a product demonstration (or "demo" for short) is a promotion where a product is
demonstrated to potential customers. The goal of such a demonstration is to introduce customers
to the product in hopes of getting them to purchase that item.

Products offered as samples during these demonstrations may include new products, new versions
of existing products or products that have been recently introduced to a new commercial
marketplace.
In-store demonstrations are usually performed at large retail locations, such as supermarkets,
department or discount stores, or in shopping malls. The products that are promoted at in-store
demonstrations may be food and beverages, food preparation equipment, housekeeping products,
personal care items, or occasionally other types of goods. The samples that are distributed may
either be in readymade packets pre-assembled for the demonstration, or are prepared on site by the
demonstrator. Some demonstrations involve the distribution of prepared food, requiring the
demonstrator to bring equipment such as a microwave oven or hot plate to the location. Often,
coupons for the product are distributed as part of the demonstration. Some demonstrations consist
of coupon distribution only.

Demonstrators may be employees of the store where the demonstration is being performed,
employees or the manufacturer of the product, or independent contractors who work for a temp
agency. Most are not trained to seek out customers likely to buy the product. In-store
demonstrations allow potential customers to touch or taste a product before they buy.

Door-to-door, and by-appointment salespeople demonstrate such products as Tupperware,

encyclopedias, vacuums, and carpet stain remove Prototypes are often demonstrated in trade
shows, and are called "tech demos “Product demonstrations have been a staple of state fairs for
many years. The first product demonstration in a format that would later be called an infomercial
is attributed to a 1949 demonstration of the Vitamin blender. Many countries around the world do
not place legal restrictions on outdoor product marketing and demonstrations. Salespeople set up
temporary sites to demonstrate their wares in order to attract sales. Included with a purchase, a
video on a DVD disc may be provided demonstrating the product's use. Video product
demonstrations can also be found on the Internet at the homepages of companies or on web hosting
sites such as YouTube. Product demonstration videos have become increasingly important for the
sale of music equipment. With the increase of online shopping, there are fewer opportunities to try
a product prior to purchase. This has a particular problem for music equipment which, unlike other
technology, the quality of the sound produced may come down to a more personal preference and
may not be as closely related to the specifications of a particular product. YouTube is one of the
main hosts of music equipment videos, and channels may be run by retailers, publishers, musicians
or even manufacturers themselves. With decreases in music sales, demonstration videos have
become an additional source of revenue for full-time musicians, with artists such as Rob Chapman
(musician, 1975) having over 400,000 subscribers.

CRM Techniques:
1. Data Warehousing and Data Mining

2. Suggestion Schemes

3. After-sale-service

4. Satisfaction Surveys

5. Customer Service Agents:

6. Priority Customer Programme

7. Loyalty Programmes

8. One to One Marketing