Marketing Function of Management-Definitions, Conceptual framework, Marketing

environment, Marketing Mix, Product life cycle, New Product Development, Pricing
Objectives, Channel Management, Advertising and Sales promotion, Online marketing trends.

Definitions:
AMA: Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large.
Kotler: A societal and managerial process by which individuals and organizations obtain what
they need and want through creating and exchanging value with others.
Philip Kotler and Kevin Lane Keller: The art and science of choosing target markets and
getting, keeping, and growing customers through creating, communicating, and delivering
communicating superior customer value

Conceptual framework

Marketing environment:

Marketing Mix - 4 P and 7 P of Marketing

Meaning:
Marketing Mix, also known as the four P's is a set of marketing tool or tactics, the four key
elements of a marketing strategy is used to promote a product or services in the market and sell
it. It is about positioning a product and deciding it to sell in the right place, at the right price
and right time. The product will then be sold, according to marketing and promotional strategy.
The components of the marketing mix consist of 4Ps Product, Price, Place, and Promotion. In
the business sector, the marketing managers plan a marketing strategy taking into consideration
all the 4Ps. By paying attention to the following four components of the marketing mix, a
business can maximize its chances of a product being recognized and bought by customers.

Definition: The marketing mix is the use of a marketing tool that combines a number of
components in order to strengthen and solidify a product’s brand and to help in selling the
product or service. Product based companies have to come up with strategies to sell their
products, and coming up with a marketing mix is one of them.
4 P’s of Marketing

Product: A product is a commodity, produced/built/manufactured to satisfy the need of an

individual or a group. The product can be tangible, such as vehicles/electrical & electronic
equipments or a piece of clothing, etc. or intangible, such as a cruise or house cleaning service
etc. As it can be in the form of services or goods. It is important to do extensive research before
developing a product as it has a fluctuating life cycle.
A product has a certain life cycle that includes the growth phase, the maturity phase, and the
sales decline phase. It is important for marketers to reinvent their products to stimulate more
demand once it reaches the sales decline phase. It should create an impact in the mind of the
customers, which is exclusive and different from the competitor’s product. There is an old
saying stating for marketers, “What can I do to offer a better product to this group of people
than my competitors”. This strategy also helps the company to build brand value.
Example: Before the iPhone was launched, most consumers did not realize the need for a phone
that would let them access everything at their fingertips. The way Apple marketed its product
compelled people to simplify their lives by carrying a smartphone that could also serve as a
GPS, calendar, search engine, flashlight, weather guide and calculator.
Price: Price is an important component of the marketing mix. The price of the product is
basically the amount that a customer pays for to enjoy it. Price is the most critical element of a
marketing plan because it dictates a company’s survival and profit. Adjusting the price of the
product, even a little bit has a big impact on the entire marketing strategy as well as greatly
affecting the sales and demand of the product in the market. While determining the price
consider, the competitor’s price, list price, customer location, discount, terms of sale, etc.
Example: Price play a vital role in making a product successful, if a product is overpriced, only
a few consumers will purchase it. Conversely, a product that is priced too low can give
consumers an impression of inferior quality, thus preventing them from purchasing it.
Place: Place or distribution is an important part of the marketing mix strategy. The location
where the product can be purchased is important for optimizing sales. We should position and
distribute our product in a place that is easily accessible to potential buyers/customers.
Example: The place is where the product is marketed and distributed from. Products targeting
the younger generations would gain more attention if they were promoted online and on social
media platforms.
Promotion: Promotion refers to reaching the target audience with the right message at the right
time. It gets the word out and is an effective way to conduct a sales promotion and connect
with consumers. A promotional strategy aims to show consumers why they would need a
certain product and the reasons for buying it over other products. The core of marketing
communications, product promotions push out specific and meaningful advertising through
popular channels: word-of-mouth seeding, social networking, Instagram campaigns, print
marketing, television commercials, and email marketing campaigns, social media marketing
and more.
It is a marketing communication process that helps the company to publicize the product and
its features to the public. It is the most expensive and essential components of the marketing
mix, that helps to grab the attention of the customers and influence them to buy the product.
Most of the marketers use promotion tactics to promote their product and reach out to the public
or the target audience. The promotion might include direct marketing, advertising, personal
branding, sales promotion, etc.
7 P of Marketing:
The 7Ps model is a marketing model that modifies the 4Ps model. As 4P’s is becoming an old
trend, whereas present day marketing needs deep understanding of the rise in new technology
and concept. So, 3 more new P’s were added to have a deep understanding of the concept of
the marketing mix.
People: The Company’s employees are important in marketing because they are the ones who
deliver the service to clients. It is important to hire and train the right people to deliver superior
service to the clients, whether they run a support desk, customer service, copywriters,
programmers…etc. It is very important to find people who genuinely believe in the products
or services that the particular business creates, as there is a huge chance of giving their best
performance. Adding to it, the organisation should accept the honest feedback from the
employees about the business and should input their own thoughts and passions which can
scale and grow the business.
Process: We should always make sure that the business process is well structured and verified
regularly to avoid mistakes and minimize costs. To maximise the profit, it’s important to
tighten up the enhancement process.
Physical Evidence: In the service industries, there should be physical evidence that the service
was delivered. A concept of this is branding. For example, when you think of “Technical
education”, you think of IIIT, BBSR. When you think of sports goods, the names Nike and
Adidas come to mind. And so on.
Robert F. Lauterborn suggested in 1990, presents four C's a more customer-centric approach
that showcases different elements of the marketing mix from a buyer's perspective, rather than
from a seller's viewpoint. It is comprised of the following elements:
Consumer Solution (needs & wants)
Cost to the customer
Convenience to buy
Communication
Customer mix, or six C's. A fundamental overhaul of the traditional approaches, the six C's
aims to address the needs of modern and customer-focused digital marketing strategies. This
marketing mix consists of the four C's plus Content and Community.

Product Life Cycle

The product life cycle is the length of time that a product is available to customers. It starts
when a product (a good or a service) is introduced into the market and ends when it's removed
from the shelves.
This concept is used by management and marketing professionals to make marketing and sales
decisions, such as whether or not to increase advertising, reduce prices, expand to new markets,
or redesign packaging. The process of strategizing ways to continuously support and maintain
a product is called product life cycle management.

Stages in the Product Life Cycle

1. Introduction Stage
When a product first launches, sales are typically low and grow slowly. In this stage, profit is
too low (if any) as the product is new and untested. In this phase the first time customers are
introduced to the new product. This stage generally requires that the business make a
substantial investment in advertising. At this point, the marketing is focused on making
consumers aware of the product and its benefits, especially if it is broadly unknown what the
offer will do.
The introduction stage requires significant marketing efforts, as customers may be unwilling
or unlikely to test the product. There are no benefits from economies of scale, as production
capacity is not maximized.
The underlying goal in the introduction stage is to gain widespread product recognition and
stimulate trials of the product by consumers. Marketing efforts should be focused on the
customer base of innovators – those most likely to buy a new product. There are two price-
setting strategies in the introduction stage:
Price skimming: Charging an initially high price and gradually reducing (“skimming”) the
price as the market grows.
Price penetration: Establishing a low price to quickly enter the marketplace and capture market
share, before increasing prices relative to market growth.
2. Growth Stage
If the product continues to thrive and meet market needs, the product will enter the growth
stage. In the growth stage, sales revenue usually grows exponentially from the take-off point.
Economies of scale are realized as sales revenues increase faster than costs and production
reaches capacity.
Competition in the growth stage is often fierce, as competitors introduce similar products. In
the growth stage, the market grows, competition intensifies, sales rise, and the number of
customers increases. Price undercutting in the growth stage tends to be rare, as companies in
this stage can increase their sales by attracting new customers to their product offerings.
3. Maturity Stage
Eventually, the market grows to capacity, and sales growth of the product declines. In this
stage, price undercutting and increased promotional efforts are common as companies try to
capture customers from competitors. Due to fierce competition, weaker competitors will
eventually exit the marketplace – the shake-out. The strongest players in the market remain to
saturate and dominate the stable market.
The biggest challenge in the maturity stage is trying to maintain profitability and prevent sales
from declining. Retaining customer brand loyalty is key in the maturity stage. In addition, to
re-innovate itself, companies typically employ strategies such as market development, product
development, or marketing innovation to ensure that the product remains successful and stays
in the maturity stage.
4. Decline Stage
In the decline stage, sales of the product starts to fall and profitability decreases. This is
primarily due to the market entry of other innovative or substitute products that satisfy
customer needs better than the current product. There are several strategies that can be
employed in the decline stage, for example:
Reduce marketing efforts and attempt to maximize the life of the product for as long as possible
(called milking or harvesting).
Slowly reducing distribution channels and pulling the product from underperforming
geographic areas. Such a strategy allows the company to pull the product out and attempt to
introduce a replacement product.
Selling the product to a niche operator or subcontractor. This allows the company to dispose
of a low-profit product while retaining loyal customers.

NEW PRODUCT DEVELOPMENT PROCESS

New Product Development (NPD) is the process that combines research, design, and
engineering to turn ideas into products that meet real customer needs. Unlike improving
existing products, new product development focuses on bringing entirely new concepts to life-
from initial research and ideation to market launch.
New product development refers to the complete process of bringing a new product to market.
This can apply to developing an entirely new product, adding features to an existing one to
keep it attractive and competitive, or introducing an old product to a new market.
The emergence of NPD is driven by the need of companies to maintain a competitive advantage
in the market by introducing new products or innovating existing ones. While regular product
development refers to building a product that already has a proof of concept, new product
development focuses on developing an entirely new idea - from idea generation to development
to launch.
NPD helps to:
 Stay updated with new technology and trends
 Beat the competition with creative solutions
 Offer more products and find new streams of revenue
 Adapt to changing customer needs
 Use resources more efficiently
 Improve your brand's image
 Grow your business and ensure sustainability
Research fuels NPD
 Understanding market needs: You can’t solve a problem you don’t understand.
Research uncovers what users actually need (and what they don’t). It helps spot market
gaps, track emerging trends, and assess customer demand, ensuring your product
matters.
 Shaping your product: Research helps on what’s working and what’s not, letting us test
and tweak ideas early. It’s all about how one could turn “maybe this will work” into
“this works.”
 Cutting costly mistakes: No one wants to spend months (or millions) on the wrong idea.
Product research tells us when to pivot, refine, or go all in—saving us from expensive
regrets down the road.
 Boosting the marketing: Building the product is one thing, selling it is another.
Customer research helps us figure out how to position our product, price it right, and
make it stand out of the clutter in the market.
  Staying competitive: The market moves faster. Research keeps us Competitive and
ahead of the race by spotting trends and finding new opportunities before everyone else
does.
Research is the glue that helps holding everything together. With it, organisations find it easy
building products that people actually use and invest in—that’s what success looks like.
Types of new product
New-to-the-world products: These are innovative products that have never been designed and
developed before, having the capacity to create entirely new markets. Think of the first personal
computers, which brought computing into homes; or the initial release of smartphones, which
changed how we communicate and access information. These products often come with high
risks but also the potential for high rewards.
New-to-the-firm products: These products already exist in the market but are new to the
company. Like when a male grooming company, initially focused on razors and beard care,
expanded into new personal care products—like body wash and shampoo. This move doesn’t
redefine the business, but it broadens the business offerings and can reach a wider audience.
Additions to existing product lines: This involves introducing new versions or variations of
existing products. Ex: Software updates that introduce new features, improved security, bug
fixes, and user interface improvements
Revisions to an existing product's design, materials, or process to improve its functionality,
durability, or cost-effectiveness
Upgrades or replacements of specific components or subsystems within a larger product to
improve its overall capabilities or performance
The goal is to keep the existing product relevant, competitive, and aligned with evolving
customer needs and market trends—rather than introducing an entirely new product line. These
additions help keep the product line fresh and appealing to customers, offering them more
choices and meeting diverse needs.
7 stages of new product development
When it comes to new product development, each journey to a finished product is different.
Although the product development process can vary from company to company, it's possible
to break it down into seven main stages. Let's have a look at them one by one.
1. Idea generation
Idea generation involves brainstorming for new product ideas or ways to improve an existing
product. During product discovery, companies examine market trends, conduct product
research, and dig deep into users' wants and needs to identify a problem and propose innovative
solutions.
A SWOT Analysis is a framework for evaluating a product’s strengths, weaknesses,
opportunities, and threats. It can be a very effective way to identify the problematic areas of a
product and understand where the greatest opportunities lie.
There are two primary sources of product development ideation. Internal ideas come from
different areas within the company—such as Marketing, Customer Support, the Sales team, or
the Engineering department. External ideas come from outside sources, such as competitors
and, feedback from the target audience.
The more we understand our users and the market, the better our ideas will be. Some research
methods we can use include:

 Competitor research: Look at what’s already out there. What’s working for
competitors? Where are they falling short? These gaps are where your product can
shine.
 Customer feedback: Use moderated interviews, focus groups, etc. Ask your audience
what they need, what frustrates them, and what they wish existed. Their answers are
often the blueprint for your next idea.
 Journey mapping: Step into your user’s shoes. What steps do they take to solve their
problem? Where do they get stuck? Mapping their experience helps us spotting
opportunities for improvement.
 Concept testing: Sharing ideas early on with users. Even rough sketches or basic
prototypes can reveal whether you’re on the right track or need to pivot.
Ultimately, the goal of the idea generation stage is to come up with as many ideas as possible
while focusing on delivering value to your customers.
2. Idea screening
This step revolves around screening the generated ideas and picking only the ones with the
highest chance of success. Deciding which ideas to pursue and discard depends on many
factors, including the expected benefits to your consumers, product improvements most
needed, technical feasibility, or marketing potential.
The idea screening stage is best carried out within the company. Experts from different teams
can help check aspects such as the technical requirements, resources needed, and marketability
of the idea.
3. Concept development and testing
All ideas passing the screening stage are developed into concepts. A product concept is a
detailed description or blueprint of the idea. It should indicate the target market for the product,
the features and benefits of your solution that may appeal to the customers, and the proposed
price for the product. A concept should also contain the estimated cost of designing,
developing, and launching the product.
Developing alternative product concepts will help determine how attractive each concept is to
customers and select the one with the highest value.
Once the concept is developed, test each of them with a select group of consumers. Concept
testing is a great way to validate product ideas with users before investing time and resources
into building them.
Concepts are also often used for market validation. Before committing to developing a new
product, share the concept with your prospective buyers to collect insights and gauge how
viable the product idea would be in the target market.
4. Marketing strategy development and business analysis
Now, it’s time to put together an initial marketing strategy to introduce the product to the
market and analyse the value of the solution from a business perspective.

 The marketing strategy serves to guide the pricing, positioning and promotion of the
new product. Once the marketing strategy is planned, product management can evaluate
the business attractiveness of the product idea.
 The business analysis comprises a review of the sales forecasts, expected costs, and
profit projections. If they satisfy the company’s objectives, the product can move to the
product development stage.
5. Product development
The product development stage consists of developing the product concept into a finished,
marketable product. The product development process and the stages we will go through
depends on company’s preference for development. This stage usually involves creating the
prototype and testing it with users to see how they interact with it and collect feedback.
Prototype testing allows product teams to validate design decisions and uncover any flaws or
usability issues before handing the designs to the development team.
This stage usually involves creating different kinds of prototype and conducting prototype
testing with users to see how they interact with it:
 Low-fidelity wireframes: Validate initial concepts and uncover whether your idea
resonates with users and aligns with their expectations
 Mid-fidelity designs: Incorporating feedback, refine layouts, and ensure your design
direction remains on track
 High-fidelity prototypes: Review the user experience and check for any usability issues
before handing designs to the development team
6. Test marketing
Test marketing (Pilot study/ Proto type testing) involves releasing the finished product to a
sample market to evaluate its performance under the predetermined marketing strategy.
The goal of the test marketing stage is to validate the entire concept behind the new product
and get ready to launch the product.
7. Product launch
At this point, company is ready to introduce the new product to the market. Ensure that the
Product, Marketing, Sales, and Customer Support teams are in place to guarantee a successful
launch and monitor its performance. Product launch is a critical part of the broader
commercialization stage.
While the product launch focuses on the initial introduction of the product to the market,
commercialization includes the entire timeline from product development to market saturation.
Essential elements to better understand how to prepare a go-to-market strategy:
Customers: Understand who will be making the final purchasing decisions and why they will
be purchasing the product. Create user personas and identify their roles, objectives, and pain
points.
Value proposition: Identify what makes you different from the competition and why people
should choose to buy your product
Messaging: Determine how you will communicate your product’s value to potential customers
Channels: Pick the right marketing channels to promote your products, such as email
marketing, social media, SEO, and more
You will need to constantly track and measure the success of your product launch and make
adjustments if it doesn't achieve the desired goals.

Pricing Objectives
Pricing means deciding the value of the product/service that the manufacturer will get in return
in exchange for a particular product/service. Pricing is the process of determining the price
which is optimal for both the manufacturer and the customers. There are various factors that
play a significant role in the determination of value price, like input costs, manufacturing costs,
customer expectations, general price level, profit margin, prices of rival firms, external costs,
etc. Pricing can also be defined as the value that customers need to give up in order to have any
particular product/service with them. Pricing is one of the 4Ps of marketing; i.e., Product, Price,
Place, and Promotion. Price is the only revenue-generating element. Pricing involves the
activities and procedures that help in deciding the value, a company is going to charge in
exchange for its product/service.
“Pricing is the amount of money charged for a product or service or the sum of the values that
the consumers exchange for the benefits of having or using the product or service.” -Philip
Kotler.
Pricing objectives are the goals that guide a company in setting the price of a product or service.
These objectives are fundamental to a firm’s overall business and marketing strategy,
influencing how products are positioned in the market and compete with others.
The pricing objectives of a company directly impact its market presence and profitability. They
determine the pricing tactics, influencing the product’s perceived value and the revenue
generated.
The objectives of pricing encompass a range of strategic goals that businesses aim to achieve
through their pricing decisions. These objectives guide how products or services are priced and
contribute to overall business success. Key objectives of pricing include:
1. Revenue Generation: Pricing can be used to maximise total revenue by finding the optimal
balance between price and quantity sold. This objective is particularly relevant when a business
aims to capture a larger market share.
2. Market Ruler: A business would want to rule the market and acquire a significant share in
the market against its rival firms. For this, it will try to increase its revenue and customer base.
In order to do the same, the company will need to agree on an optimal price for its
product/service that the customers can afford.
3. Survival: Pricing decisions focus on generating revenue which helps the firm to survive in
the market. Without revenue and profits, a firm cannot survive for a longer period. Pricing
generates revenue and revenue is used in further production in order to produce goods.
4. Profit Maximisation: One of the primary objectives of pricing is to generate maximum profit
for the business. Pricing strategies are designed to ensure that the revenue generated from sales
exceeds the costs incurred in producing and marketing the product or service.
5. Attraction and Retention of Customers: Having a proper and affordable pricing strategy
helps the business in acquiring new customers and retention of previous customers. A more
customer base means more revenue.
6. Market Penetration: This involves setting lower initial prices to attract new customers and
gain market entry. The long-term goal is to establish a customer base and increase market share,
often followed by gradual price increases as brand loyalty builds. Market penetration is
typically adopted by new entrants or for launching new products, aiming to quickly establish a
market presence based on their go-to-market strategy.
7. Market Share Leadership: Companies aiming for market share leadership set prices to
outcompete rivals and dominate market share. This could involve aggressive pricing strategies
to capture and maintain a larger market segment. This pricing objective is often pursued in
competitive sectors where long-term dominance is more valuable than short-term profits.
Importance of Pricing
Pricing is of paramount importance in the realm of business and commerce due to its
multifaceted impact on various aspects of an organisation’s operations, financial health, and
overall success. The significance of pricing can be outlined as follows:
1. First Impression: Price is the first thing that the customers think of while purchasing any
product/service. Even if the customer makes his/her overall decision on the overall benefit from
the product he/she is going to get, they are still going to compare the prices of other similar
goods. If the prices are too high than what customers can afford, they are going to lose interest.
2. Right-Level Pricing: Setting up the wrong prices can even shut down the company due to
the non-generation of revenue. A thorough market research is required before setting up the
final prices for the product.
3. Sales Promotion: As the basic idea of more sales includes lowering the prices, a sales
manager may suggest the business to cut down the prices in order to generate more sales.
4. Flexible Element: Price is the most flexible element of marketing in comparison to product,
place, and promotion. Price can be changed rapidly and is affected by many factors like
customer perception of value, inflation, economy, overall costs, etc.
5. Profit Generation: Pricing directly influences a company’s revenue and profit margins.
Setting the right price ensures that the revenue generated from sales exceeds the costs incurred
in production, distribution, and marketing, thereby contributing to profitability.
6. Competitive Edge: Pricing strategies can differentiate a business from its competitors.
Appropriate pricing helps create a competitive advantage by appealing to customers through
factors such as affordability, perceived value, or quality.
7. Demand Management: Effective pricing can regulate demand for products or services. Price
adjustments, discounts, or promotions can stimulate demand during slow periods or manage
peak demand to prevent stock outs.
Factors Affecting Pricing Decisions
The pricing of products is influenced by a multitude of factors that businesses must carefully
consider to determine an appropriate and effective pricing strategy. These factors can vary
across industries, markets, and individual businesses. Some of the key factors affecting product
pricing include:
1. Customer’s Perception of Value: The customers’ expectation of the price of the product
plays an important role in deciding the price of the product. Customers only bear the cost of a
product that they can afford. If the price of product/service are very high, it will have a very
small customer base. Customer-oriented price approach is generally followed in order to cover
the customers’ perception of value. In a customer-oriented price approach, the customer is
considered as the ‘king’ and the decisions relating to pricing are taken from the viewpoint of
the customer.
2. Competitors: Competitors’ pricing strategies, market share, and positioning can significantly
impact how a product is priced. Businesses may choose to price their products at a premium,
match competitors’ prices, or use other strategies to differentiate themselves.
3. Government Law and Regulations: Pricing decisions are also affected by federal and state
regulations. Some laws prevail in order to protect the customers from getting exploited at the
hands of manufacturers, promotion of ethical behaviours from the end of manufacturers, etc.
For example, Firms coming together and joining hands, agreeing on charging higher prices for
a particular type of product, is illegal.
4. Economy: Economic environment like fluctuations in the general price level, interest rates,
and unemployment level also affects the pricing strategy of firms.
5. Product Costs: The total cost that the manufacturer incurred in the production of the product
affects the pricing decision. Production costs can be of several types, like fixed costs, variable
costs, semi-variable costs, etc. Also, promotional costs, distribution channel costs, packing
costs, etc., are considered while deciding the price.
6. Market Demand: The level of demand for the product at different price points affects pricing
decisions. High demand might allow for higher prices, while low demand could require
competitive pricing to attract customers.
7. Elasticity of Demand: Price elasticity measures how sensitive demand is to price changes.
Inelastic demand allows for price increases without significant drops in demand, while elastic
demand requires more cautious pricing adjustments.
8. Market Segmentation: Different customer segments may have varying willingness to pay.
Businesses can tailor pricing strategies to target specific segments and maximize revenue from
each.
9. Branding and Positioning: Premium brands can command higher prices due to their
reputation and perceived quality. Pricing can be used to reinforce the brand’s image as luxury,
value-oriented, or innovative.
10. Distribution Channels: The chosen distribution channels can impact pricing. Direct-to-
consumer sales might allow for more flexibility in pricing compared to working through
intermediaries.
Pricing Strategies
Different pricing strategies that a company can adopt to decide the price of its product/service
include:
1. New-Product Pricing Strategies
The time business faces the most difficulty in setting up the pricing strategy is when they launch
a new product/service. The introductory stage is tough for almost all businesses. In this
scenario, businesses mostly go for either Market-Skimming Pricing or Market-Penetration
Pricing. Market-Skimming Pricing is opted by those companies who have launched new
products and have no competition. They charge high prices at first and later on lowers them.
Market-Penetration Pricing is the opposite of market-skimming pricing. In Market-Penetration
Pricing, business sets low prices at first to gain a significant market share and later on increase
their prices.
2. Product Mix Pricing Strategies
When a product is a part of the product mix, the business would like to charge higher prices
for the product in order to increase the overall profits of the product mix. There are various
strategies coming under Product Mix Pricing Strategy, stated as:

Strategy Description
Product Line Pricing Setting prices across an entire product line
Pricing accessary or optional products sold with the main
Optional-product Pricing
product
Pricing products that are complementary to the main
Captive-product Pricing
product
By-Product Pricing Pricing low-value by-products to get rid of them
Product Bundle Pricing Pricing bundles of products sold together

3. Price-Adjustment Strategies
Companies keep on changing their pricing strategy to account for various customer differences
and changing situations. There are various strategies coming under Price-Adjustment
Strategies, such as:

Strategy Description
Reducing prices to give rewards to customers for
Discount and Allowance
exceptional responses like paying early or promoting the
Pricing
product
Adjusting prices to allow for differences in customers,
Segmented Pricing
products, or location
Psychological Pricing Adjusting prices for psychological effect
Promotional Pricing Temporarily reducing prices to increase short-run sales
Adjusting prices to account for customers’ geographic
Geographic Pricing
location
Adjusting prices continually to meet the needs of
Dynamic Pricing
individual customers and situations
International Pricing Adjusting prices for international markets

Channel Management
Companies use channel management for product distribution. Product distribution refers to the
processes by which a business delivers its products and services to its customers. In terms of
channel management, organizations establish partnerships with third-party companies like
agents, vendors, manufacturers, wholesalers and retailers, which make products available for
public purchase. The channel management needs of a company depend on its size and structure.
A business that sells products directly to its customers may not have any channels to manage,
but a business with extensive marketing needs and distribution chains may have many.
Channel management is important for connecting with customers, supporting third-party
partners and managing vendors. Good channel management involves careful planning that
helps you track how your channels contribute to your business goals. When companies manage
their channels effectively, they ensure they deliver the products customers want, when they're
most in demand, while optimizing their profits and developing positive relationships with their
partners. Although channel management requires extensive planning and can become more
complicated for businesses that work with many channels, it's an essential part of improving
your business strategies and reaching your target markets.
Effective channel management ensures their products or services reach the end customer
efficiently and effectively. It helps in:

 Maximizing revenue by optimizing sales channels

 Enhancing customer satisfaction by ensuring product availability
 Building strong relationships with channel partners
 Reducing distribution costs through efficient logistics
Establishing a channel management strategy, do the following:
 Set clear goals for each channel.
 Define policies and procedures to manage your channels.
 Identify the right channels for your products.
 Develop sales and marketing programs for each channel to meet customers’ needs.
 Establish a regular cadence for reviewing and analysing channel performance for each
channel.
While identifying a channel management solution to complement a business, consider the big
picture. Internal and external communication are key to finding a channel management strategy
that helps meet company’s goals.
Types of Channels
Direct Channels: Direct channels are used to sell products or services directly to consumers
without any intermediaries. This can include company-owned stores and e-commerce websites.
By maintaining control over the sales process and channel pricing, companies can ensure a
consistent customer experience and build stronger customer relationships. Ex: Apple operates
its own retail stores and online stores to sell its products directly to consumers.
Indirect Channels: Indirect channels utilize intermediaries such as wholesalers, retailers, or
distributors to reach the end customers. This approach allows companies to expand their market
reach without the need for extensive investment in distribution infrastructure. Ex: Partner stores
and third-party sellers like Walmart and Best Buy. Indirect channels can help companies access
new markets and customer segments that might be difficult to reach directly.
Online Channels: Online channels encompass e-commerce platforms and digital marketplaces.
These channels have grown significantly due to the rise of internet usage and online shopping.
Ex: Amazon, eBay, and Alibaba. Online channels offer the benefit of reaching a global
audience with relatively low overhead costs. They also provide data-driven insights into
customer behavior, which can be used to personalize marketing and sales strategies.
Offline Channels: Offline channels include brick-and-mortar stores and other physical sales
locations. These channels remain important for providing a tangible customer experience and
for products that require in-person demonstrations or consultations. Ex: Supermarkets,
specialty stores, and pop-up shops. Offline channels can create a strong local presence and
foster personal connections with customers.

Advertising and Sales promotion

Advertising: A promotional activity to convey the qualities and benefits of your products or
services compared to the products and services offered by the competitors. In most cases,
companies will use advertising to convey a unique selling proposition that differentiates their
goods and services from those of their competing companies.
Lexus, for example, promotes its luxury vehicles as the result of a “relentless pursuit of
perfection,” whereas BMW counters with the slogan “The Ultimate Driving Machine.”
Advertising’s main objective is to increase sales and build brand image opportunities which
will pay off in the upcoming years.
Sales Promotion: Short-term sales of goods and services are the priority of sales promotions.
Many businesses push these promotional offers when consumer demand is higher than usual.
For example, the festive season is a beautiful time for companies to grab sales promotions
because customers are likely to make purchase decisions. Sales promotions could include
limited-time free trials, coupon codes, and buy-one-get-one-free deals.
Advertising vs Sales Promotion Main Differences:
1. Advertising is a long-term strategy. When a company creates an advertisement with the
help of another company, it helps keep it for a long time. On the other hand, sales
promotion is a short-term strategic approach that lasts only a few days. It may, even so,
reoccur when the brand necessitates it.
2. Advertising is also incredibly costly. An advertisement is expensive to create and then
promote. However, compared to advertising, sales promotion may not be as expensive.
3. As advertising is costly, it is not the best fit for small companies. Only big and medium
brands opt for it. Sales promotion is best for small brands. Although medium and large
brands can undertake this promotional strategy as well.
4. In advertising, an advertisement is created, printed, and published on online platforms.
However, sales promotion is much easier. It involves things like offering discount
coupons to draw buyers.
5. Being promoted across all platforms aids in the creation and emphasis of the brand
name. As a result, the brand’s sales can increase. However, sales promotion is only
meant to increase the sales revenue.
6. While sales promotion immediately provides returns, advertising requires time to
demonstrate results.
From the above we can conclude that advertising and promotion are distinct. However, some
similarities exist: both are part of a marketing strategy. The tools are primarily used to influence
product or service demand and to elicit the desired response in the target market.

Online marketing trends.

Digital marketing is a rapidly evolving field, and as we move toward 2025, several emerging
trends are set to reshape how brands connect with their audiences.
The upcoming years promise significant innovation, driven by technological advancements,
changes in consumer behavior and a deepening focus on personalization and data. As digital
marketers, staying ahead of these trends is essential to create impactful strategies that drive
engagement and results.
Trends worth considering in 2025 and beyond.
1. Artificial Intelligence and Machine Learning In Marketing
Chatbots and virtual assistants continue to evolve, soon providing more human-like
interactions. As AI tools become more intuitive and accessible, businesses can automate
routine tasks like lead nurturing and email marketing, freeing up human teams for more
strategic work.
To prepare, marketing teams should develop skills in AI-driven content tools like Jasper and
ChatGPT, particularly when it comes to customer segmentation and content personalization. I
believe it will become important to have some familiarity with AI-driven customer service
tools, such as chatbots equipped with sentiment analysis and natural language processing
(NLP) features.
Overall, keep an eye on AI advancements in personalized user interactions that can interpret
and respond to customer sentiment. This shift will allow brands to offer a more customized
customer experience, making AI an essential asset in customer relations.
2. Voice Search and Voice Commerce
With the proliferation of smart speakers like Amazon’s Alexa, Google Home and Apple's Siri,
voice search has become a mainstream method for information gathering. A recent report by
NPR and Edison Research shows that at least 35% of U.S. households now own a smart
speaker, accelerating the shift toward voice commerce.
It's important to note how voice search optimization differs from traditional SEO as users ask
questions conversationally. Instead of typing "best coffee shops in Seattle," a voice search
might be "What are the best coffee shops near me?" Brands should focus on long-tail keywords
and natural language to capture this growing audience.
3. The Rise of Augmented Reality (AR) and Virtual Reality (VR)
While AR and VR were once primarily associated with gaming, I see them now transforming
industries like retail, allowing for immersive shopping experiences.
Major brands like IKEA and Sephora have already implemented AR. IKEA’s AR app allows
users to view furniture in their own space, while Sephora’s AR technology lets users
experiment with virtual makeup try-ons. These applications are reshaping customer
expectations and proving AR’s utility across retail sectors.
For brands looking to embrace AR and VR, consider investing in an AR experience platform
that aligns with your industry. For example, fashion and beauty brands could explore virtual
try-ons, while real estate companies might benefit from virtual property tours. Early adoption
can enhance customer engagement and differentiate brands in competitive markets.
4. The Continued Dominance of Video Content
Video content remains a powerful force in digital marketing, with platforms like YouTube,
TikTok and Instagram Reels focusing on short-form, interactive formats.
As consumer preferences shift toward snackable, engaging content, brands can use video to
deliver information quickly and creatively. Here are my tips for creating engaging video
content that speaks to developing trends:
• Embrace short-form and live streaming. Use live streaming for real-time engagement, which
is ideal for launches or Q&As. On top of this, short-form platforms like TikTok and YouTube
Shorts can boost reach. I find that tools like InShot and Canva can help simplify quality video
creation.
• Adapt to new platform offerings to encourage interaction. With new features on YouTube
Shorts, Instagram Reels and TikTok, brands can leverage interactive tools (e.g., polls, live
Q&As) to engage viewers. Regularly analyse metrics to refine content strategies based on what
resonates most in each niche.
5. Short-form video content
TikTok videos undoubtedly dominated as the most popular social media content type in the
last year. They were so successful that many other major social media platforms copied the
style – in the past few years, we’ve seen the rise of Instagram Reels (later copied to Facebook),
YouTube Shorts, and even Twitter tried their luck with Fleets (removed in 2021).
One thing is certain – our attention span is getting shorter. Of course, there are still a lot of
captivating videos on YouTube, but short-form video format is a completely different piece of
content. You can just scroll TikTok on your way to work or before bedtime as a time-filler.
Here’s a challenge for you as a marketer. Use the first seconds of the video to grab the user’s
attention and try to save your brand in their memory. Probably not every company is viral-
worthy, but on the other hand, Ryanair and Duolingo are quite successful when it comes to
views on TikTok.
6. Personalization at Scale
Consumers expect personalized experiences across all digital channels. By 2025, I foresee
personalization advancing beyond basic customization and enabling brands to deliver hyper-
personalized content and recommendations. To prepare for this increasing focus into hyper-
personalization, I first recommend you invest in dynamic content platforms. Brands can
consider platforms like HubSpot or Marketo that offer advanced personalization features. Look
for ways to create dynamic content adjustments that reflect user data, ensuring messages are
relevant to each visitor.
AI-driven personalization can also allow your brand to design user journeys that proactively
meet customer needs. Develop campaigns that consider various stages of the buyer journey,
from interest to decision-making, for highly relevant interactions.
7. Customer experience
Because we are increasingly moving to the digital world, the customer experience has become
an even more important part of business strategy. Now you can find reviews and opinions about
almost everything in a matter of seconds. If a company offers a bad customer experience, the
word will quickly spread out. Customers will quickly start to avoid their products and look for
alternatives.
There’s just no excuse for poor customer service in 2025.
Your digital marketing strategy should put focus on giving the customers the best experience.
Your webpage should be easy to use and fast. Do not hide vital information from users. Work
on clear site structure. Use chatbots or other solutions to make customer contact easy.
8. Influencer marketing
Influencer marketing used to be very straightforward. You find a profile with many followers,
pay them to promote your product and wait for the results. It’s not that simple anymore. Social
media users are well aware of influencer marketing and do not trust that easy anymore anything
they see in their feeds. Becoming a social media influencer is now a way of life. To be a great
influencer, you have to know how to generate engagement and need a lot of expert knowledge.
For a quick rundown of who is who in influencer marketing, check Brand24’s list of top digital
marketing influencers.
9. Social Commerce and Shoppable Content
The line between social media and e-commerce is blurring, with platforms like Instagram,
Facebook and Pinterest integrating in-app shopping features. This development allows
consumers to purchase products directly from their social media feeds, creating a seamless
browsing-to-purchase experience.
To optimize for social commerce:
• Create engaging, shoppable content. Focus on visually appealing and interactive content that
encourages sharing. Use shoppable posts on Instagram and Facebook to streamline the buying
process and improve conversion rates.
• Partner with influencers. Collaborate with influencers or incorporate user-generated content
to broaden reach. This strategy helps build credibility and connects your brand with new
audiences.
10. Multi-channel social media marketing
Just a few years ago, you didn’t have to care much about other social media platforms than
Facebook. Everybody was there, and everything happened there.
But not in 2025. Facebook is not yet shutting down, but if you truly want to be a good social
media marketer, you have a lot of other different channels to maintain.
The platform that has been getting the most attention lately is TikTok. It has gained a lot of
popularity in the past few years, and now the brands are seeing a lot of potential in marketing
on TikTok.
The story of TikTok shows us that we must be prepared for any new platform that may appear
on the market. Young people (Gen Z and the next generation) are particularly likely to jump
ship to the new thing and never look back.
My advice is to observe how BeReal is growing and be on the lookout for any serious Twitter
alternative that appears on the market. Right now, Mastodon seems like a potential competition
for Twitter.
11. SEO
The latest Google updates show us we are approaching the end of an era when it comes to
keyword-stuffing SEO. The AI algorithms in search engines are getting clever and can now
clearly see if the landing page or article was crafted by a real human who genuinely wants to
help the reader or if it was a work of old-fashioned SEO who just paraphrased some other
content and added more keywords.
Don’t get me wrong – keywords are still important, and you should still care about SEO. You
just need to change the perspective. Google and other search engines promote sites that
thoroughly answer users’ questions, not the ones that have the most backlinks and the exact
keyword in the meta title.
If you are still buying spammy links, stuff keywords, and using other black-hat SEO tactics,
2025 is the time to stop.
Another digital marketing trend in SEO is zero-click searches. We all want to hit that first
position with perfectly optimized content. But sometimes Google decides to use our answer as
a featured snippet, and traffic significantly drops. There’s, unfortunately, no remedy for that.
If you want to avoid zero-click searches, be sure your writing is so captivating that the users
want to read more. On the other hand, if they are just looking for a quick answer and the
featured snippet gives them what they want, there are low chances they would become your
client anyway.
12. Ethics in digital marketing
In 2025, there’s no place for unethical marketing strategies. Conscious choices are trending.
Your potential and existing customers are now much more motivated by ethics and morality
than ever before. That’s why you need to be honest in your communication. Sometimes it’s
better to admit you are not the best choice for them and spare the disappointment (and negative
reviews). Users will appreciate your honesty and remember the good advice.
More and more companies pursue CRM (Cause-Related Marketing). They use their social
media channels and other marketing materials to promote philanthropy and similar behaviors.
Yes, corporate giving often is done purely for tax-deduction purposes, but at the same time,
they are really helping the planet. The bottom line is you just need to stay ethical in your digital
marketing strategy. Otherwise, even your loyal customers will turn on you sooner or later when
they see your bluff.
13. Google Analytics 4
If you are using Google Analytics, you will be making the switch to the newest version this
year. Google announced GA4 would fully replace Google Analytics Universal on July 1, 2025.
If you are still using the old GA, it’s high time to test the new version. You can already install
it on your website. There are tons of free and paid courses on the new iteration of Google
Analytics, so if you encounter any problems, you can seek expert support.
Alternatively, you can try some analytics alternatives. Most of them are, unfortunately, paid,
but offer some additional features unavailable in the Google tool. Before you decide to make a
switch, check if the tool is compliant with the latest GDPR and other data collection
regulations.
14. Gen Z
Finally, people from Generation Z are becoming adults, and soon they will be the main target
audience for most sales. Gen Z online shopping behaviours differ from Millenials and are
definitely much more contrasting with Gen X and Baby Boomers. Is your digital marketing
strategy prepared for the new wave of customers?
I strongly suggest re-evaluating your business strategy and thoroughly monitoring your
analytics tools to check the age of people visiting your website. If the audience gets older, then
your messaging is probably still on point. But if it gets younger, you need to educate yourself
on Gen Z shopping behaviours.
15. PPC Trends
With such fierce competition for customers, paid advertising offers a way for companies to
target their core audience with relevant messages.
What makes the pay-per-click (PPC) model so enticing is that marketers can control their
spending and stick to a budget.
“One of the battles that anyone running PPC campaigns is fighting at the moment is trying to
keep their cost per clicks down,” says Brendan Almack, Managing Director of Wolfgang
Digital in a recent DMI podcast. “There's also been a shift in ROAS (Return on Ad Spend)
metric that PPCers love. There's now a realization that ROAS could be stifling growth and
people need to think outside ROAS if they're looking for new customer acquisition.”
Unsurprisingly, the leader in this space is Google. Worldwide revenue for Google in Q3 2023
came in at $76.7 billion, of which $59.6 billion was from Google advertising. This was a 9.5%
year-on-year increase, demonstrating the appetite for paid ads.

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