7 Types of Marketing those are Clubbed on Different Basis | Business Management

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The types of Marketing those are Clubbed on Different Basis are as follows:

The students would find number of terms with which marketing is suffixed. Sometimes the name of all products and industries are added as the subjects of marketing activities, such as Motor-vehicle marketing, information technology marketing, university marketing, soap marketing, watch marketing etc. there will be an infinite number of marketing classifications.

For the convenience of readers the types of marketing have been clubbed on certain basis.

1. On the basis of Levels:

The marketing can be classified as Macro-Marketing and Micro- Marketing. Macro-marketing refers to the overall social process that directs the flow of goods and services from producer to consumer. It is the economic system that determines what and how much is to be produced and distributed by whom, when, and to whom.

Macro-marketing functions that make up the economic process include - buying (which refers to consumers seeking and evaluating goods and services), selling (which involves promoting the offering), logistics (movement of goods from one place to another and warehousing till consumers want), standardization and grading(sorting products according to size and quality), financing (which delivers the cash and credit needed to perform the first five functions), and market information (Collection, analysis, and distribution of the data necessary to execute these marketing functions).

On the other hand, micro-marketing refers to the activities performed by the individual providers of goods and services. Such organizations or businesses use various marketing techniques to attain objectives relating to profits, market share, cash flow, and other economic factors. The micro-marketing function within an entity is commonly referred to as marketing management.

2. On the basis of Customers:

Here we first describe business to customers marketing. The customers purchase goods and services they enjoy. Consequently, it is more difficult to sell them than business buyers.

Consumers are generally less sophisticated than intermediate buyers, are less willing to spend time and are more sensitive to the price of a good or service.

Consumers typically make a buying decision on their own, or, for larger purchases, with the help of a friend or family member, and are much more likely to buy on impulse than are industrial customers.

Business to Business marketing:

Since B2B marketing involves companies trying to sell mass quantities of product to one another, there is a more personal relationship that needs to be established between businesses. Market is made up of buyers who purchase for the purpose of creating other goods and services. Thus, their needs are different from general consumers. Buyers in this group include manufacturers and service firms, wholesalers and retailers, governments, and non-profit organization.

Rural marketing:

In recent years, rural markets have acquired significance, as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities.

But rural marketing requires a different marketing mix. Almost all the companies are looking at rural areas for growth momentum. Many large format rural retail stores are visible - DSCL Haryali Stores, M & M Shubh Labh Stores, TATA / Rallis Kisan Kendras, Escorts Rural Stores, Warnabazaar, Maharashtra (Annual Sale f 40 crore), etc.

Personalized marketing:

It refers to creating a unique offer for each individual customer. With the popularity of Internet for marketing, companies find personalized marketing effective, especially when they can track a customer's specific interests and send them complete information.

International or Global marketing:

International marketing is the application of marketing principles to across national boundaries. However, there is a crossover between what is commonly expressed as international marketing and global marketing, which is a similar term

3. On the basis of Medium:

Marketing on the basis of media can be categorised further on the basis of electronic media, social medium and other medium. The first kind of marketing is categorised into On-line marketing or internet marketing - It takes advantage of the global reach of the World Wide Web and the huge number of potential customers available online through internet.

It is the opposite of offline marketing, and can also fall under digital marketing or cyber marketing. A company with a total web site marketing plan will have more success online than one that has just designed a web site without thinking of how to market their company through it.

The second category belongs to mobile marketing, Telemarketing, and Search engine marketing. Currently, India boasts of over 400 million mobile users (which are expected to double in the next three years). The prospects of mobile marketing are huge in India. However, it has yet to take off in a splendid manner.

Around 30 million of these users access mobile Internet-the largest in Asia. The country offers huge potential to marketers to reach their audiences, i.e., end users in a direct and personalized way. Besides people in the metros, people in rural area are also recognizing the potential of a mobile phone.

Among various mobile marketing channels globally, SMS is the trendiest because of its ubiquitous nature Also, mobile coupons (recently Carrefour did it while opening its cash and carry store in Shahdara area of Delhi) gaining recognition as part of the overall marketing campaign. Telemarketing is the process of marketing goods or services over the telephone.

This definitely ensures easy access to the right target audience. In fact telemarketing has made a mark across all the competitive economies across the world and undoubtedly telemarketing in India has become rather big too. Most of what we think of as telemarketing is cold call marketing, which is unpopular and has lead to laws being created against it.

There are basically two types of telemarketing, inbound telemarketing and out bound telemarketing. Inbound Tele Marketing is usually from prospective customers who are looking at either finding out more information about a particular product or services; or are looking at placing an order for a product or service. Out Bound Tele Marketing is usually targeted towards prospective customers or clients and involves informing them about a product or service.

Search engine marketing (SEM) refers to companies promoting their business through paid placement on search engines like Google. Instead of increasing the organic search results that a website has, companies will pay to have their advertisements in the sponsored section of search engines.

On the basis of social medium marketing can be classified into Social media marketing, Article marketing, Referral marketing, Affiliate marketing, and Viral marketing. The third classification on the basis of media is other medium which includes Trade show marketing.

Social network marketing and social media campaigns provide a window to market a product or service on the Internet through different social networks. Most of the MNCs working in India now make use of these outlets for their marketing, customer service and sales. The most common and successful means of social media marketing are found on sites like Face book, Twitter, Linkedin, YouTube and even company blogs.

When Businesses often write articles related to the industry they are in and distribute them online and offline, it is called article marketing. These free articles will inform people about an important topic and give the writer-company more credibility within the market. The organization can also include their business contact information, to get new clients.

Referral marketing depends on a company's customers to refer new customers to that company. Also known as 'word of mouth marketing', it cannot be solely relied on because results aren't very predictable.

However, word of mouth is still a powerful part of a company's efforts to bring in new business, especially in the social media community where communication travels freely.

Affiliate marketing normally involves four different groups that contribute to the marketing effort. First is the company that is producing and selling the product; second is the Network, the outlet that is used to promote the affiliate link; third is the Publisher or Affiliate, the person who has the website with the affiliate ad; and of course the customer doing the purchasing. Affiliate links are found on all types of websites, and they are used to drive traffic to outside websites.

Viral marketing means a marketer quickly tries to spread his message through various social networks in order to increase brand awareness. The name viral marketing comes from the rapid spread of viruses in general.

Burger King had created the 'Subservient Chicken' website, where Web surfers were able to control a person in chicken suit by typing in commands. More than 50 million people surfed the Website in less than a year.

Other medium marketing types include offline marketing, direct marketing, and trade show marketing, Offline marketing includes all forms of marketing that do not use the Internet.

Examples of offline marketing are local advertising in newspapers and on television. In today's marketing world, companies are finding ways to leverage their offline marketing campaigns with their online ones, making them complement each other.

Direct marketing refers to sending a communication straight to consumers, without making use of any third party outlets. Examples of direct marketing include mail marketing, telemarketing (most of the real estate companies) and direct selling (Eureka selling its water purifiers). The advantage with direct marketing is that the results can be easily measured, giving the marketer a better understanding of his efforts.

Database marketing is similar to any kind of direct marketing, but the focus is more directed towards analyzing data like name, address, or sales history, in order to create the most accurate model possible. Companies narrow their marketing efforts down to certain groups of people.

Trade Show marketing is used to participate in public or private trade fairs and exhibitions to a large number of potential customers. Trade shows and other forms of event marketing though involve a large investment, but trade shows permit companies to demonstrate new products and also assess as to what is going on in the industry.

4. On the basis of Interest:

Who is more interested in marketing, shall decide the classification. It may be outbound marketing or Inbound marketing. Majority of companies today are using different types of outbound marketing to reach their potential customers.

Outbound marketing includes any marketing efforts that are taken to introduce a product or service to someone who isn't looking for that product or service. Some examples are cold calling, sending newsletters, billboards, and banner ads on different web sites.

When the customer tries to reach at you it is called Inbound marketing. The important thing to remember here is that a person starts out with the want/need to purchase a product or service, and they go out to find it.

When they search for that product/service on a search engine, the search engine results page will show inbound marketing results. Instead of using paid advertisements, inbound marketing is the search engine optimization (SEO) part of web marketing.

A form similar to it is known as Reverse marketing. The goal of reverse marketing is to market a product in a way that will cause the consumer to seek the firm doing the marketing.

5. On the basis of Target:

If the target customer group is small and specific a firm would go in for niche marketing. It is also known as concentrated marketing. It appeals especially when company's resources are limited. In niche marketing, a company goes after a large share of one or a few segments, rather than going after a small share of a large market.

The definition of niche marketing changes with the times; what is niche today may not be so tomorrow. In its temporal sense, creating a niche market would mean identifying particular market segments and then filling the gaps therein. "These gaps are opportunities where one has to look for ways to sustain the competitive advantage, look for something that is buildable that will align all elements of your company."

Table 16.2: Niche marketing Versus Mass Marketing:

Basis

Niche Marketing

Mass Marketing

Targeting

Smaller

Larger, as many as possible

Focus

Customers not reached by mass marketers

Anyone and everyone

Example (USA)

Married parent/unmarried parents/ single parents/divorced or separated parents

Parents

Needs

Specific

More general and less specific

Required Expertise

Specialist skills and knowledge

Low cost operation, heavy promotion, wide distribution

Competition

Less

More

Customer Knowledge

Much more and in-depth

Less

Mass marketing refers to appealing to an entire market with one basic marketing strategy utilizing mass distribution and mass media. It is also called as 'undifferentiated marketing'.

PepsiCo India has decided to serve the bottom-of-the-pyramid consumer for the first time in the country. PepsiCo is creating verticals to cater to different segments of consumers, across functions like sales, operations, distribution and marketing.

6. On the basis of Goals:

What the organization is to achieve depends upon the type of organization. Commercial organizations go for commercial marketing, whereas social organisations go for social marketing.

Social Marketing applies the principles of marketing to address social problems by influencing behavior change. Social marketing seeks to impact personal behaviour by persuading target audiences to:

(a) Avoid risky practices (e.g., smoking)

(b) Discontinue antisocial actions (e.g., littering)

(c) Seek counselling (on marital discords)

(d) Take preventive measures (e.g., safety belts)

(e) Join, give or organize for a specific cause (like NDTVs support a school)

Commercial marketing is the mainstream marketing. In "commercial marketing" the aim is primarily "financial".

7. On the basis of Strategy:

Strategically marketing may be Guerrilla marketing, Ambush marketing, and Surrogate marketing. Guerrilla marketing refers to a situation when a firm with a smaller budget, creates a lasting impact by relying on energy, timing and unusual approaches to get the consumer's attention.

The term "ambush" connotes the older method of warfare in the present era of commercialization, competition and advertisement. Ambush marketing is also known as parasitic marketing. Parasitic marketing means taking advantage of the value of a major publicity event.

It is usually employed at the times of big sporting events, where big corporations' cash is on the names of the sporting events without paying the requisite fee, which constitutes the crux of "direct ambush advertising".

However, it is not sporting events only which become the mode of deploying ambush marketing. Of late, India has witnessed a spurt in the cases of ambush marketing even without any association with the sporting events.

The objectives of ambush marketing are twofold: (i) to get maximum returns on the marketing buck, and (ii) to undermine the branding efforts of the rivals by stealing the attention, increasing the clutter and confusing the viewers.

Ambush marketing was first witnessed in 1984 Olympics and the 1996 Cricket World Cup which highlighted the concept in India. During the 1996 World Cup, although Coca Cola was the official sponsor of the tournament, Pepsi ambushed the campaign by coming up with the tagline "nothing official about it".

In recent times, the nation has been a witness to hoarding ambush advertisements. Jet Airways came up with an ad campaign saying "We've changed"! To ambush the campaign, Kingfisher airlines came up with "We've made them change" which was further ambushed by Go Airways saying "We've not changed.

We are still the smartest way to fly". The hoardings in this case, were placed in the city of Mumbai in a vertical sequence. The campaigns proved to be a funny sight to the city but a slap in the face of competitors as each competitor was feeding into the campaign of the other.

The latest war was between Hindustan Unilever's shampoo brand "Dove" and Procter & Gamble's shampoo brand "Pantene". P&G launched its intriguing ad campaign for Pantene with the tagline "A mystery shampoo. Eighty percent women say it is better than anything else."

A few days later and before P&G could launch the new Pantene, Hindustan Unilever ambush the campaign by placing an adjacent hoarding with the tagline "There is no mystery? Dove is the No. 1 shampoo.", thus, ambushes Pantene's campaign.

Surrogate marketing is when a marketer promotes one product or service in the hopes of selling another. In India with respect to the ban on tobacco and alcohol advertising, companies in banned industries are introducing brand extensions with products that are legal to advertise with the same brand name as the banned product. One liquor company introduced apple juice with the same brand name as the liquor.

The idea is the companies can advertise freely the extension - thus keeping their banned-from-the-media products in the minds of the customers. So the apple juice, for instance, is the surrogate for the liquor in the ads.

The companies also don't care much about the sales of the surrogate products. The advertisement on TV for Bagpiper soda is actually to promote Bagpiper whisky.

This list should give the students a good idea of different ways companies can market themselves to consumers or other companies, but there are still more types of marketing out there.

Depending on the company and the industry it is in, marketing manager will definitely choose different kinds of marketing that will produce the best results for the firm.


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