Just wondering how digital marketing works and what should I know? Then this is the right place to begin. Let us know the basic set of jargons first to begin with:
1. Brand Recall
In market research, we often hear the use of the terms recall, aided recall and unaided recall. These terms are all a subset of Brand recall. Brand recall is the extent to which a brand name is recalled by the respondent, or the audience, as being part of a brand, product or a service.
Commonly, it is regarded that high level of unaided recall is beneficial for the brand. This is because unaided recall is nothing but the first brand name which comes to the mind of the respondent. It is often known as top of the mind recall. Eg: A respondent may be asked to list all the names of cars he knows, or the list of shampoos that he/she uses. Companies look for high levels of unaided recall with respect to competition. This is because of the fact that the first recalled brand has a distinct competitive advantage and also is the first brand for evaluation or purchase.
Aided recall on the other hand measures the extent to which a brand name is remembered. Eg. a respondent might be asked, whether he knows of the Brand "Bajaj", or does he remember the advertisement of a particular brand. This aids in capturing, how well a respondent, is aware of the brand.
2. Market Intelligence
Market intelligence, is a branch of market research, which involves the collation and analysis of relevant data or information about certain markets. While market research is a more consumer oriented method, market intelligence involves the collation of data from different sources like trade bodies, business journals, personal interviews with business contacts, company accounts, official statistics, or category specific websites.
Market intelligence gives a broader analysis of markets, consumer trends, and also sector/industry specific data such as market share, market segmentation, and market size. Industry wide reports, country wide consumer attitudes, etc., are the end products of market intelligence.
Market intelligence is not the same as Marketing Intelligence (MI), or Business Intelligence (BI).
3. Loss Leader Pricing
A loss leader pricing strategy is an aggressive pricing strategy, where the product is sold at cost, or less than cost, to attract customers. The product which uses such a pricing strategy, is termed as a loss leader.
This pricing strategy is employed by retailers selling a wide range of products. The retailer knows that the products earmarked as loss leaders won't make any profit, but will act as anchors, or crowd pullers. The retailer will make for the loss of loss leader products on other products, where the profits are high.
In South Asia, loss leader pricing has been practiced successfully by many retailers, especially Big Bazaar, which started the trend. Big Bazaar widely advertises best deals (often loss leaders) to pull huge crowds to its stores. Big bazaar's sales have been newsmakers, with people queuing up hours in advance to lap up the deals. Other supermarkets, hypermarkets and specialty stores have followed suit in implementing such a strategy.
The after effect of such a strategy has resulted in "Cherry Picking" by shoppers. Cherry picking is a phenomenon where shoppers move from one retail outlet to another, to make purchase of the best deals (Read lowest price) among all retailers. Cherry picking by shoppers renders the entire strategy of the retailer to be pointless, as the shoppers buy only loss leader products, but not other high margin products(which is the original strategy of the retailer). However, the practice of cherry picking is not as widespread as on date.
4. Marketing Lessons from Physics: Dan Cobley
We all know that physics, is the law behind the things happening around us. Who among us, thought that physics and the world around us, could teach us marketing lessons?
In this 2010 TED Talk, Dan Cobley, Director of Marketing, Google Europe, tells us how physics teaches us things about marketing.Source: TED
5. Embedded Marketing
Embedded Marketing, or Product Placement, is a form of advertising, where branded goods are placed in a medium usually devoid of any ads. These include movies, music videos, televison shows, sports, or even news programs. The product placement is often not disclosed at the time when the same is featured.
Un-missable product placements include Aston Martin cars in Bond movies, and the Audi R8 in Iron Man Series. Automobiles, consumer electronics and computers, food and drink, and tobacco are the most placed product categories. The practice became common in the 1990s, when the importance of such placement came to the fore.