Michael Eisner joined the Walt Disney Company as the chairman of the board in 1984, after his successes at the ABC television network and Paramount. The same year, Tokyo Disney was completing its first year of operations after five years of planning and construction, when the Walt Disney Co. entered into an agreement with Oriental Land Company in Japan. More than 10 million people visited the park that year, spending $355 million. This was $155 million more than had been expected and was partially attributed to the average expenditure per visitor being $35, rather than the estimated $21. The timing of the Tokyo Disneyland opening coincided with a rise in income and leisure time among the Japanese.… Read the rest
Marketing Functions
Factors to Consider When Setting Prices
In the narrowest sense, price is the amount of money charged for a product or service. More broadly, price is the sum of all the values that consumers exchange for the benefits of having or using the product or service.
Price is the only element in the marketing mix that produces revenue; all other elements represent costs. Price is also one of the most flexible elements of the marketing mix. Unlike product features and channel commitments, price can be changed quickly. At the same time, pricing and price competition is the number one problem facing many marketing executive. Yet, many companies do not handle pricing well.… Read the rest
Introduction to Marketing Research
Marketing research is the intelligence service of a business enterprise. American Marketing Association defined marketing research as “the gathering, recording and analyzing of all data about problems relating to the transfer and sale of goods and services from producer to consumer.”
Objectives of Marketing Research- To know the demographics and psychographics of customers:- Marketing research tries to reveal the number of persons who buy, why they buy, when they buy, the frequency of their buying, and the sources of their buying. It also includes the social status and the regional location of the customers.
- To find out the impact of promotional efforts.
Steps Involved in Advertisement Planning
Advertisers and advertising agencies believe that customers have needs and desires, which can be fulfilled through the purchase and use of products and services. Advertising works largely through appeal of emotions of envy, fear, anxiety, about one’s appearance and lack of status. It is widely assumed that advertising works if the AIDCA formulas are followed. The formula sums up the principles of advertising. The name of the formula is derived from the initial letters of the words: Attention, Interest, Desire, Conviction and Action.
The formula suggests that the attention and interests of the customers must be gained first before the process of stimulating desire, imparting conviction and urging action in advertisements can bring about a change in the buying behaviors.… Read the rest
The Components of an Advertisement
We can factor an advertisement into seven important components;
1. The Headline
The Headline is the most read part of an advertisement. So advertisers try to tell maximum part of the product story through the headline. A headline will introduce the product or makes the promise statement or puts a question. It basically tries to attract the attention of the readers and create curiosity so the audience or reader sees further. The major types of headlines are:
- Direct promise of benefit
- News about the product
- Curiosity or provocative, and
- Command headlines
Direct headlines make a direct promise about how the product will benefit the readers.… Read the rest
Importance of Advertising
Advertisement is a mass communicating of information intended to persuade buyers to by products with a view to maximizing a company’s profits.
Generally, advertising is a relatively low-cost method of conveying selling messages to numerous prospective customers. It can secure leads for salesmen and middlemen by convincing readers to request more information and by identifying outlets handling the product. It can force middlemen to stock the product by building consumer interest. It can help train dealers salesmen in product uses and applications. It can build dealer and consumer confidence in the company and its products by building familiarity. Advertising is to stimulate market demand.… Read the rest