Month: November 2015

When we talk about marketing channels we usually refer to the different methods by which products are moved from manufacturers to distributors or the end users. These are also called the distribution channels in the FMCG industry. The way the distribution channels are designed and set up will determine the efficiency of a company’s marketing method and will also impact sales and profitability. When the right channels are not set up for marketing goods, a company might end up facing inefficiencies in its economies of scale and reduction in profitability. Again, finding the right market or customers for the different products is important in setting up the right marketing channels.

Direct marketing

Some companies refer to events agency companies when they want to market their wares directly. In most cases, small ventures opt for the direct marketing method by which they eliminate the need of a middleman in order to get the products across to the end customer or user. In this form of marketing there are sales representatives who are employed to conduct the direct sales.

Use of distribution channels

In most cases, companies sell their products not directly to the end users, but through different distribution channels. The products are sent to a distributor outlet first and then to retail outlets. The companies usually employ an events agency for promotional campaigns while distributors are employed for distribution of the goods through different channels. There are different kinds of marketing channels that are chosen as per the nature of the goods being marketed.

Movement of goods

The channel that is chosen for distribution of goods of a company differs in the way the products are sent to the market. For instance, clothing that is created in a warehouse or designed by a designer is created and then shipped to the boutiques or departmental stores. This is a kind of marketing channel. In other cases, where products are sent to overseas locations, they are sent through the shipping companies. The marketing channels in this case involve several shipping and distribution partners.

Distribution channels and costs

The end product cost is dependent on the number of marketing channels that are used. There are several middle men who are involved in the distribution of a product and that affect the end cost of a product or service. The cost of each middle man’s service gets added as a premium or a percentage fee to the production cost of a product. In this way the final cost or price of a product is arrived at. At the time when a product’s marketing is being planned, the distribution channels and methods needed to be planned accordingly so that the final market price can be arrived at.

Brand perception is very important. It is so important that sometimes brand gain success solely on the basis of feeling created in the psyche of the consumer. Marketers say that 80% of purchases are based on emotions and so role of a brand manager is to formulate strategies that help consumers identify with the products that they use and consider them as part of their personality.

There are various ways to create a brand identity and cash it for generating sale. Here are mentioned a few of them.

Logo designing: Brand logo is supposed to be the first identifying feature. Digital banner designer can also work upon brand logo and create one that can ring bells in the mind in the very first glimpse. Creative designers research a lot, gain opinions and try finding the thought about the logo to understand how it is being perceived.

Banner designing: A banner can be just an image or it may be a complete landscape. It can also be just a sentence or a combination of few words with a picture at the back. Companies hire the services of a digital banner designer who can create a quality banner telling nice story to the viewer. Banner leaves a long-lasting impression on the mind of a consumer and is supposed to extend curiosity generated by the logo.

Advertisement copy: Advertisement copy is the voice of the brand. Producer has to be very clear on the premise of what message he wants to convey to the consumer. Role of ad copy is to generate a feeling of indispensability about the product in the consumer’s mind. Also, ad copy has to go with the consumer’s profile. When the target audience is filthy rich consumers, ad copy saying product to be cost-effective is not going to create any curiosity. Thus, use words wisely.

Brand Archetypes: Every promotion campaign has to have a personality. Products are meant to become a part of user’s daily life and so it is important to generate a profile that has personality traits which any user can easily identify with. For example, Apple is considered to be a visionary, whereas Microsoft is a next door girl.

Word of mouth: When many people start saying same thing at a time, people start believing it. So, the best way to create a brand perception is by talking about it. Organizations should start talking about the product by creating a discussion forum comprising of the company insiders. This group then should share their conversation among people of outer circle. The ripple effect generated can help create a buzz about the product.

Building brand perception is the first step towards making the product a new rage. So, think wise but act emotionally; it can help touch the right chord.

Today, Facebook is the largest social media site with almost 1.5 billion active users. The unique thing about the social network is that it continues to grow without showing any signs of slow down. This is in stark contrast to the story of Orkut that wound up gloomily some time ago. According to the latest advertising report, Facebook’s CTRs also show consistent growth. In fact, its click-through-rate growth is growing even faster than that of the largest search engine’s display CTRs.

Facebook’s Dominance Over Google in CTR
According to a top senior marketing consultant, the social network has been dominating Google in this aspect for over a year now. Its CTR is growing faster than that of Google. But the search giant is itself working on its new features to close in and overtake the social site. It has recently launched the Customer Match Feature, which is expected to help it gain a lot of lost ground.
Studies show that Facebook’s ad CTR has grown by more than 35% over the last year. This proves that its focus on targeting is offering good returns. Advertisers worldwide are increasingly using the social site and getting positive impressions. This has been confirmed by hundreds of senior marketing consultant globally.
Google’s CTR Growth
On the other hand, Google’s display CTRs have grown by around 25% over the last year. Even when Google announced its new feature, it shows that the search giant is facing stiff competition and desires to take advantage of its targeting data for improving its display performance. The new feature, Customer Match, will allow marketers to target audience based on their email addresses. You will also be able to target others who match the target audience across Google’s properties like Google Search, Gmail and YouTube.
The Customer Match feature allows marketers to load list of email addresses they already have. The addresses are then matched to the users who are logged in Google. It will then develop ads/campaigns to target these users.
According to leading social media experts, 7 out of 10 online consumers are influenced by the timing, relevance and quality of your message. If you get these factors right, most of your target audience will start building a positive perception of your brand.
Facebook may be growing at a faster rate more recently, but with multiple web properties and platforms, Google has a long term edge. Advertisers have a wider ranging reach over its platforms. But at the same time, advertisers on the social network are gaining better traction for the moment being. How long this growth will last is another story. But Facebook itself is working on expanding its horizons in the near future.