• All activities involved in selling goods or
services directly to final consumers for
their personal, non-business use,.
Retailers: Businesses whose sales come primarily from retailing
lower prices by
margins and selling
@ higher volume)
Off Price (Retailers
that buy at less than
prices and sell at
less than retail. Eg.
that sells a wide
selection of high
mark up, fast
moving brands at
Chain (2 or
and sell similar
to set up a
More Product Lines Sold Contd.
Convenience Store (near residential area; high turnover, limited line; open for long hours)
Combination Store (Food & Drug), Superstore (twice the size of Supermarkets food and non
food items and services as dry cleaning, post offices, bill paying, lunch counters etc.) and
Hypermarket (Supermarket, Discount and Warehouse Retailing)
Service Business (Hotels, Movie Theaters, Bowling Alleys, Hair Care shops etc)
CONTROLS OF OUTLETS Contd.
Franchise Organization- Contractual Association between a manufacturer, wholesaler or
service organization and independent businesspeople (franchisees)
Merchandising Conglomerate (Corporations that combine several different
retailing forms under central ownership and share some distribution and
Wheel of retailing concept:
• A concept of retailing that states new types
retailers, usually begin as low margin, low
price, low status operations but later
evolve into higher priced higher service
operations, eventually becoming like the
conventional retailers they replaced.
• All activities involved in selling goods and
services to those buying for resale or
E.g..: A retail bakery is engaging in
wholesaling when it sells pastry to the
Direct Marketing (Non Store
• Marketing through various advertising
media that interact directly with
consumers, generally calling for the
consumer to make a direct response.
– Direct Mail (Post)
– Mail Order Catalogues
– Direct Radio & TV Marketing
– Online Computer Shopping
• also referred to as i-marketing, web marketing, online marketing,
or eMarketing, is the marketing of products or services over the
• The Internet has brought many unique benefits to marketing, one of
which being lower costs for the distribution of information and media
to a global audience.
• The interactive nature of Internet marketing, both in terms of
providing instant response and eliciting responses, is a unique
quality of the medium.
• Internet marketing is sometimes considered to have a broader
scope because it not only refers to digital media such as the
Internet, e-mail, and wireless media; however, Internet marketing
also includes management of digital customer data and electronic
customer relationship management (ECRM) systems.
• Internet marketing ties together creative and
technical aspects of the Internet, including
design, development, advertising, and sale.
• Internet marketing also refers to the placement
of media along different stages of the customer
engagement cycle through search engine
marketing (SEM), search engine optimization
(SEO), banner ads on specific websites, e-mail
marketing, and Web 2.0 strategies.
Internet marketing is associated with several business
• e-commerce — goods are sold directly to consumers
(B2C) or businesses (B2B),
• publishing — the sale of advertising,
• lead-based websites — an organization generates
value by acquiring sales leads from its website, and
• affiliate marketing — A process in which a product or
service developed by one person is sold by other active
seller for a share of profits. The owner of the product
normally provide some marketing material (affiliate link,
Features of Internet Marketing
• One-to-one approach
The targeted user is typically browsing the Internet alone, so the
marketing messages can reach them personally. This approach is
used in search marketing, where the advertisements are based on
search engine keywords entered by the user.
• Appeal to specific interests
Internet marketing and geo marketing places an emphasis on
marketing that appeals to a specific behaviour or interest, rather
than reaching out to a broadly-defined demographic. "On- and Off-
line" marketers typically segment their markets according to age
group, gender, geography, and other general factors. Marketers
have the luxury of targeting by activity and geolocation. For
example, a kayak company can post advertisements on kayaking
and canoing websites with the full knowledge that the audience has
a related interest.
• Internet marketing differs from magazine advertisements, where the
goal is to appeal to the projected demographic of the periodical.
Because the advertiser has knowledge of the target audience—people
who engage in certain activities (e.g., uploading pictures, contributing
to blogs)— the company does not rely on the expectation that a
certain group of people will be interested in its new product or service.
• Geo targeting
Geo targeting (in internet marketing) and geo marketing are the
methods of determining the geolocation (the physical location) of a
website visitor with geolocation software, and delivering different
content to that visitor based on his or her location, such as country,
region/state, city, metro code/zip code, organization, Internet Protocol
(IP) address, ISP or other criteria.
• Different content by choice
A typical example for different content by choice in geo targeting is
the FedEx website at FedEx.com where users have the choice to
select their country location first and are then presented with different
site or article content depending on their selection.
• Automated different content
With automated different content in internet marketing and
geomarketing the delivery of different content based on the
geographical geolocation and other personal information is
• Internet marketing is relatively inexpensive when compared to the ratio of
cost against the reach of the target audience. Companies can reach a wide
audience for a small fraction of traditional advertising budgets. The nature
of the medium allows consumers to research and purchase products and
services at their own convenience. Therefore, businesses have the
advantage of appealing to consumers in a medium that can bring results
• Internet marketers also have the advantage of measuring statistics easily
and inexpensively. Nearly all aspects of an Internet marketing campaign
can be traced, measured, and tested. The advertisers can use a variety of
methods: pay per impression, pay per click, pay per play, or pay per
action. Therefore, marketers can determine which messages or offerings
are more appealing to the audience. The results of campaigns can be
measured and tracked immediately because online marketing initiatives
usually require users to click on an advertisement, visit a website, and
perform a targeted action. Such measurement cannot be achieved through
billboard advertising, where an individual will at best be interested, then
decide to obtain more information at a later time.
• Internet marketing is growing faster than other types of media. Because
exposure, response, and overall efficiency of Internet media are easier to
track than traditional off-line media—through the use of web analytics for
instance—Internet marketing can offer a greater sense of accountability
• Internet marketing requires customers to use newer technologies
rather than traditional media. Low-speed Internet connections are
another barrier: If companies build large or overly-complicated
websites, individuals connected to the Internet via dial-up connections
or mobile devices experience significant delays in content delivery.
• From the buyer's perspective, the inability of shoppers to touch, smell,
taste or "try on" tangible goods before making an online purchase can
be limiting. However, there is an industry standard for e-commerce
vendors to reassure customers by having liberal return policies as
well as providing in-store pick-up services.
• A survey of marketing executives listed the following barriers to entry
for large companies looking to market online: insufficient ability to
measure impact, lack of internal capability, and difficulty convincing
• Security Concerns
Total Quality Management
Total Quality Management means that the
organization's culture is defined by and
supports the constant attainment of
customer satisfaction through an
integrated system of tools, techniques,
and training. This involves the continuous
improvement of organizational processes,
resulting in high quality products and
Total Quality Management
Basic Tenets of TQM
• 1. The customer makes the ultimate
determination of quality.
• 2. Top management must provide leadership and
support for all quality initiatives.
• 3. Preventing variability is the key to producing
• 4. Quality goals are a moving target, thereby
requiring a commitment toward continuous
• 5. Improving quality requires the establishment
of effective metrics. We must speak with data and
facts not just opinions.
Total Quality Management
• “A Customer’s impression of quality begins with
the initial contact with the company and continues
through the life of the product.”
– Customers look to the total package - sales, service
during the sale, packaging, deliver, and service after the
– Quality extends to how the receptionist answers the
phone, how managers treat subordinates, how
courteous sales and repair people are, and how the
product is serviced after the sale.
• “All departments of the company must strive to
improve the quality of their operations.”
Total Quality Management
The TQM System
Education and Training Supportive structure
Communications Reward and recognition
The Marketing Connect
• Long-term success of total quality management (TQM)
programmes depends on initiatives which form strong
partnerships with marketing activities.
• The objective of the partnerships is to integrate customer
requirements into programmes.
• Relationships with customers and other stakeholders need
to be continuously analyzed.
• The status of TQM-marketing partnerships is highly variable,
with respect to customer understanding. Many remain in
their infancy, while others have matured well in a short
• For the latter group, marketing’s customer voice has become
an expanding part of the quality movement to develop
products and services that excite customers.