Marketing Techniques

There are five different concepts of marketing;

Production Concept

"The reason that Production was given major importance was because of “Says Law” which stated that Supply creates its own Demand." - from French economist Jean-Baptiste Say. Meaning, if a product is made, somebody will want to buy it.

The basic idea of the production concept is that customers will choose products and services that are widely available and are of low cost. So business is mainly concerned with making as many units as possible.

In a production-orientated business, the needs of customers are secondary compared with the need to increase output. It is natural that the companies cannot deliver quality products and suffer from problems arising out of impersonal behavior with the customers. 

Note that the production concept is mainly a thing of the past and was used when there was very less competition. At such times, the more you produced, the more will be the consumption of the product. An example in this case is FORD, who manufactured huge numbers of automobiles through its manufacturing assembly line - the first of its kind.

Product Concept

The product concept proposes that consumers will prefer products that have better quality, performance and features as opposed to a normal product. The concept is truly applicable in some niches such as electronics and mobile handsets. (Think Apple and SONY)

One problem which has been associated with the product concept is that it might also lead to 'marketing myopia'. Marketing Myopia was first coined by Theodore Levitt, editor of the journal Harvard Business Review, and it refers to the often myopic view that a business might get, where it looks at the business’s own goals rather then focusing on the needs and wants of the customers. Looking at the market from a myopic perspective results in the company ignoring the many opportunities and possibilities which the market represents. It also stops the growth of the company if the company is myopic in nature. Thus companies need to take innovations and features seriously and provide only those which the customer needs. The customer needs should be given priority. 

Companies following the product concept need to concentrate on their technology such that they provide excellent, feature rich and innovative products for optimum customer satisfaction. From a service aspect, using modern technology to compliment the service, e.g. an app, tracker or monitor, keyless entry, instructional videos, playlist etc.

Selling Concept

When WWII was over and by the mid 50’s, consumer product supply was starting to out-pace demand in many industries. Businesses had to concentrate on ways of selling their products. Numerous sales techniques were all developed during this period and the sales department had an exalted position in a company’s organisational structure.

The Selling Concept proposes that customers (individuals or organisations) will not buy enough products unless they are persuaded to do so through selling effort. So organisations should undertake selling and promotion of their products for marketing success. The consumers typically are inert and they need to be goaded for buying by converting their inert need in to a buying motive through persuasion and selling tactics. This approach is applicable in the cases of unsought goods like gym memberships, life insurance, private health insurance, dental plans, vacuum cleaners, fire fighting equipment including fire extinguishers. These industries are seen as having a strong network of sales force. This concept is applicable for the firms having over capacity in which their goal is to sell what they produce than what the customer really wants.

In a modern marketing situation the buyer has a basket to choose from and the customer is also fed with a high decibel of advertising. So often there is a misconception that marketing is all about selling. The problem with this approach is that the customer will certainly buy the product after the persuasion and if dissatisfied will not speak to others. In reality this does not happen and companies pursuing this concept often fail in the business due to bad reviews and loss of sales.

Marketing Concept

The marketing concept focuses on needs/wants of target markets & delivering value better than its competitors. This concept believes in the Pull Strategy and says that you need to make your brand so strong that customers themselves prefer your brand over every other competitor. This can be achieved through marketing. 

How to implement the marketing concept? You need to ask three basic questions of yourself or your organisation;

1) What is the target market? – Determine exactly which or who is the target market. This can be by market research and deciding which target market will give the best returns.

2) What are the needs wants and demands of the target market? – A further step in marketing research is the Consumer Preferences Study. This study will help you determine the needs wants and demands of the target market thereby helping in deciding marketing strategies.

3) How best can we deliver a value proposition? – What kind of value should the company create and deliver. How should it integrate its different departments. In this step, the business decides what strategy it needs to adopt. What combination of ATL and BTL action should be adopted.

ATL - above the line consists of advertising activities that are largely non-targeted and have a wide reach. ATL communication is done to build the brand and inform the customers about the product.

BTL - below the line consists of very specific, memorable and direct advertising activities focused on targeted groups of consumers. Often known as direct marketing strategies, focusing more on conversions than on building the brand.

TTL - through the line involves the use of both ATL & BTL marketing strategies.

Ultimately, the business decides how to apply the marketing concept within itself to deliver a better customer experience.

To summarise, the concept of marketing relies on market research and determining a better marketing strategy that satisfies the needs of the customer. The marketing concept also demands a holistic approach from the organisation.

Example of Marketing concept

Lets take an example of two eternal rivals – Pepsi and Coca-Cola (Coke) – Both of these companies have similar products yet the value proposition presented by both is different. These companies thrive on the marketing concept. Where Pepsi focuses on youngsters, Coke delivers on a holistic approach. Also the value proposition by Coke has been better over ages as compared to Pepsi which shows that coke especially thrives on the marketing concept, i.e it delivers a better value proposition as compared to its competitor.

The marketing concept also demands that the strategic decisions made by the company keep the customer in mind. Especially the needs, wants and demands of the customers. A holistic approach is taken with the whole orgnisation striving to make the customer experience better. Applying the marketing concept also means knowing what the market wants and expects from the company versus competitors through further market research into the competition.

The marketing concept is the most followed ideology by top companies. This is because, with the rise of economy, consumers have become more knowledgeable and choosy. As a result the organisation cannot concentrate on what it sells but rather it has to concentrate on what the customer wants to buy.

As we are ultimately satisfying the customer, the marketing concept also demands that the organisation integrate all its different departments to give value to the customer. This means that all the departments including Marketing, Finance, HR or Operations should have an idea of the core objectives of the company as well as the goal of the company.

Societal Marketing Concept

The Societal Marketing Concept was an offshoot of the Marketing Concept wherein an organisation believes in giving back to society by producing better products targeted towards society welfare.

The societal marketing concepts calls upon marketers to build social and ethical considerations into their marketing practices. They must balance and juggle the often conflicting criteria of company profits, consumer want satisfaction, and public interest. Yet a number of companies have achieved notable sales and profit gains by adopting and practicing the societal marketing concept. Some companies practice a form of the societal marketing concepts called Cause Related Marketing. www.dictionary.cambridge.org define this as “a method of marketing products or services in which a company aims not only to make a profit but also to help an organization such as a charity."

Promoters see it as affording an opportunity for companies to enhance their corporate reputation, raise brand awareness, increase customers loyalty, build sales, and increase press coverage. They believe that customers will increasingly look for demonstrations of good corporate citizenship. Smart companies will respond by adding “higher order” image attributes than simply rational and emotional benefits. Critics, however, complain that cause related marketing might make consumers feel they have fulfilled their philanthropic duties by buying products instead of donating to causes directly. Thus societal marketing concept, as related to cause related marketing, differs mainly because here, the company makes a proactive effort to give back to the society through Societal Marketing Concept.

Source: www.marketing91.com

For insight into an unique marketing strategy, read the article from efficiencyhub.com.au who gives a crap - societal marketing concept and email marketing strategy.

For a Gym marketing case study refer to the report marketing concepts for a small business.

Strategic and clear marketing objectives are fundamental to any sound, effective marketing plan. Your marketing objectives are your brand’s clear-cut, defined goals. Beyond this, you can look at your marketing objectives as a way to provide clear direction for your team members to follow.

Without defined goals, there’s no clarity on what needs to be accomplished, and your brand will struggle to reach its potential. By implementing a straightforward marketing plan, your company will have the goals it wants to achieve and the execution plan to meet those marketing objectives.

Some examples of Marketing Objectives include;

Together, these objectives make up your overall marketing strategy set up to achieve your company’s goals.

A major consideration in crafting marketing objectives is the company’s mission, vision, purpose and values to which the marketing objectives should be aligned with. The principles that are captured in these statements are those that must be practiced and implemented by the employees headed by the business owners, directors and senior managers.  

Setting KPIs For Marketing Objectives;

Once you know your marketing objectives and goals, it’s time to figure out how to measure them. Successful goal setting requires placing KPIs and benchmarks to track your objectives. You need to assign numbers, deadlines, and metrics to each of your marketing objectives.

KPIs and marketing metrics allow you to evaluate progress along the way and assess results at the end of your campaign. Without benchmarks for your goals, you’ll have no way of knowing if you’re on track to achieving your marketing objectives.

Some examples are;

How do you track your marketing objectives?

The methods used to track these objectives can differ from company to company, depending on how sophisticated or simple the requirements are.

Some methods you can use to keep track of your marketing objectives include;

• Real-Time Business Dashboards - There are many benefits to using a real-time dashboard to keep track of progress such as an at-a-glance view of performance, sales and marketing alignment, KPIs all in one place, time savings, and your data is always up to date with the manual process of updating the data removed.

• Marketing Software - Such as HubSpot, Infusionsoft, and ActiveCampaign make it easy to keep all of your marketing in one software and track marketing objectives, along with easy-to-view reporting that can be shared across the company.

• Excel Spreadsheet - An Excel spreadsheet is a basic option. This is not ideal because of the manual input necessary, but it does get you thinking about starting to track KPIs. Depending on your level of Excel knowledge, you can add different functions and integrations to make it easier. If nothing else, just list your KPIs along the row and the tracking cadence in the column and start inputting, making sure to keep the data updated.

Source: https://uhurunetwork.com/marketing-objectives/

The Marketing Mix model, also known as the 7P’s, is a tool that is used by marketers to assist in applying a marketing strategy. It is imperative to understand that the marketing mix principles are controllable variables. On a frequent basis, the marketing mix can be adjusted to meet the shifting requirements of the target market and all other dynamics of the marketing environment.

The marketing mix is a useful tool for marketers, and business owners. If you just start a new company, then you won’t hit the target without the method. Its main objective is to help find the right way how to take a new offer to the market. The technique helps analyse your chances on the market, find out whether your product will be competitive and profitable, as well as test the chosen marketing strategy.

As part of a business' strategic planning process and analysing, the 7P’s are:

• Product

• Price

• Place

• Promotion

• People

• Process

• Physical Evidence

 

Determine A Marketing Mix According To Market And Business Needs

Choosing the right marketing mix for your business is not always easy. It is crucial to attract a group of marketing strategies that will gain early sales and be able to sustain the business as you build a customer base.

To be able to create a marketing mix that will support your business, there are three steps to be considered;

A marketing plan helps you promote products and services in your business that meet the needs of your target market. It requires research, time and commitment, but is a very valuable process that can greatly contribute to your business success.

Writing and researching for your marketing plan gives you the chance to;

• Identify your target market and understand how your product or service meets their needs.

• Identify your competitors and what your target customers think about your competitors' strengths and weaknesses.

• Position your brand, products and services so that your target market sees your business as better than, or different from, the competition.

• Set specific, measurable goals and time frames for your marketing activities.

• Map out a strategy to reach your target audience, including the messages, channels and tools you will use.

Steps To Develop A Marketing Plan

www.business.gov.au marketing plan template and guide gives you a clear process to follow as you develop your marketing plan. Download a copy of marketing-plan template and guide doc.

Today's customers are spoilt for choice. Marketing uses communication and advertising tactics to persuade customers that your brand, including your products and services, are exactly what they need. Even though you are marketing your brand, every aspect of your marketing strategy should focus on satisfying the current and future needs of your customers.

Your approach to marketing will inform your sales techniques, so communication and collaboration within your team is critical, and everyone in your organisation should have some ownership of your marketing campaigns.

Your Marketing Strategy will help you to identify your customers and competitors and develop a unique vision for your business. It will describe how you plan to enter the market and how you intend to attract customers.  

When developing a marketing strategy, refer to Develop a marketing strategy.

The marketing activities that form your Marketing Strategy may include;

• Achieving lower costs of production and distribution than your competitors.

• Creating a unique product line or service so that the business becomes a leader in the industry.

• Opening up new distribution channels.

• Pricing, presentation and display of products and services.

• Designing product and packaging.

• Establishing  product range and mix.

• Creating a promotion and advertising schedule.

• Pursuing product differentiation within a specialist market segment.

For information on Pricing Strategies, refer to Pricing products and services.

Tactical Marketing Mix;
The 7 Ps are a set of recognised marketing tactics, which you can use in any combination to satisfy customers in your target market. The 7 Ps are controllable, but subject to your internal and external marketing environments. Combining these different marketing tactics to meet your customers' needs and wants is known as using a 'tactical marketing mix'.

A business exists because it has essential products and/or services that fulfil customers’ needs and wants. 

To promote your business you may develop an advertising campaign or an event. You will select the products or services you want to promote, identify the target customer group, research the most effective means of communicating with this group and determine a time-frame around the event. Monitoring the costs involved and the increase in sales during this period provides you with a means of measuring and monitoring the effectiveness of your marketing.

Once you’ve identified your target market, developing a promotional plan will assist you to reach them. As an essential element of the marketing mix, your promotional plan covers all of the communication that will take place with the customer. Essentially, your promotional plan answers the question; How will you get the word out about your unique selling proposition to your target market?

Promotional Strategy;
The promotion is the method used to spread the word about your products, goods or services to customers, stakeholders and the broader community.

The objective of marketing is to stand out and be noticed by potential customers. Good promotions keep drawing your clients' attention to your goods and services. Your clearly defined, well-packaged, competitively-priced goods and services are the foundation of your promotional activities and marketing.

The newer you are in the market, the harder you have to work to attract and retain new customers. Many of your promotional activities should focus on connecting the features and benefits of your products directly to your customers. Consider what promotional activities will best meet your advertising needs.
The most commonly used form of advertising and marketing is products, goods and services promotions.  Some of the promotional activities could be;

• advertising - you can advertise your product, service or brand in newspapers, radio, television, magazines, outdoor signage and online. Learn more about how to make your advertising successful.

• personal selling or telemarketing - effective personal selling relies on good interpersonal and communication skills, excellent product and service knowledge and the ability to sell product benefits to prospective customers.

• publicity - created by sending media releases to print and broadcasting media, giving interviews to the media and from word-of-mouth. Learn more about public relations.

• short-term sales promotions - market your product or service using coupons, competitions and contests.

• direct marketing - involves sending letters, emails, pamphlets and brochures to individual target clients, often followed by personal selling or telemarketing. 

Any of these methods can be used in any combination to better target your customers. Using the right promotional mix, can help you gratify your customers' needs, increase sales, improve your results and increase your ability to reach multiple customers within your target market.

Your promotional strategy should combine a variety of marketing activities;

• Advertising.

• Packaging.

• Public relations.

• Direct sales.

• Internet marketing.

• Sales promotions.

• Marketing materials.

• Other publicity efforts.

Examples of advertising and promotional activities could include;

• Developing print advertising, this could be in newspapers, lifestyle magazines or trade journals.

• Creating online advertising using social media, YouTube or a website.

• Using mail-outs and deliver to residential locations.

• Providing giveaways and special offers to interest your customers.

• Writing media releases  and sending out to all relevant media outlets, including radio, press and television.

• Creating special events using social media or print and radio advertising.

• Developing a website.

• Writing a blog and using social media.

• Creating your brand and its associated artwork.

• Developing publications and catalogues.

• Using a public relations business to promote your brand.

While you don’t want to throw too many variants into your promotional plan in the beginning, you should start by selecting 3-5 specific activities that will help you execute the marketing strategy that you identified earlier. For example, if one of your goals is to provide five free initial consultations within three months, then your promotional plan may include focusing on targeted leads through a cold calling campaign, a social media outreach plan, and a direct mail campaign.

Online marketing is a very cost-effective platform to reach a broad audience and is becoming increasingly important to businesses. In the current marketplace, it is vital to developing a separate online marketing plan to evaluate all options and help implement your strategies. 

Compared to other forms of marketing, it is advisable to remember and be aware that online marketing may require additional and different forms of training. Depending on your business and your own particular marketing strategy that you use, you may need to consider and prioritise learning of how to maintain and edit your business website or successfully use social media, to better promote and market your business.

As the internet is developing and expanding, what customers want to see online will also change. A lot of online marketing tools used in the past - such as pop-up advertising - are no longer acceptable to internet users.

Social Media - Using social media, including blogs, Twitter, Facebook, Instagram and Facebook will help to develop brand awareness. Your Social media Strategy outlines how you can use these channels and the networks you develop to communicate with your customers.  Your plan also needs to include who has the responsibility to maintain social media for the business. You may be able to do this yourself, or you may need to bring in experts to set it up and even run it for you.

Digital marketing – online targeted advertising
 
As a small business, if you want to attract customers you have the option to run advertising. If you sell cosmetics and you advertise in a local paper you advertise to 50% of the population who has no interest in your cosmetics, namely men.

In this guide, we will look at how we can effectively use digital marketing to target only those customers who are potential buyers of your product or service.

Digital marketing, also called online advertising or internet advertising, is the use of the internet, mobile devices, social media, search engines, and other channels to reach consumers. Digital advertising is a targeted, data-driven advertising strategy for reaching consumers in every stage of the buying journey from early consideration through to comparison and purchase. 

Why should you use digital marketing?
Global use of the internet grows every year. For instance, every night most Australians have a smartphone in their hand as they watch TV. You advertise to let people know you exist, to show a benefit or to promote a compelling offer.

Digital marketing has specific advantages;

• Customers can be targeted based on location, age, sex, income, interests and past search behaviours.

• Targeting can be done to only the audience you are interested in and not the ones you are not.

• Instant real-time result allows you to measure success.

• Messages can be customised rather than one message suits all.

• Start or stop advertising instantly.

Using a cosmetics brand example, you can decide to advertise today to women aged 19 to 35 who have an interest in fashion.  You can immediately see how many in your target audience have been reached and how many clicked through to your website. It is also possible to track how many of those people ended up buying a product on your e-commerce store. This is the power of the digital world.

What are the different types of digital marketing?

Before you endeavor on a digital media purchase, it is strongly suggested you build a marketing plan that includes digital marketing. The types of digital marketing options include;

• Online advertising - pop ups on websites. 

• Video live streaming - transmitting live footage over the internet to an active target audience.

• Banner ads – an advertisement that appears on a web page

• Search Engine keywords (SOE) – spending money so your business will appear on the first page of a browser (Google) search.

• Retargeting – serving a digital advertisement to someone who has already searched for your product or similar. For example, you search Toyota and keep getting ads for Toyota.

• Native – an ad that is a sponsored post rather than a hard sell ad.

• Video – use of a video advertisement in a digital arena like YouTube.

• Podcasts – placing advertising in a pre-recorded radio type program.

• Video on Demand – this could be catch-up TV or Foxtel where video advertising is allowed.

• Social media advertising – use social media as the platform to advertise.

• Mobile app advertising – free apps survive by including advertising.

• Email marketing – a direct mail piece like you would have traditionally received in your letterbox but via email.

How do I begin digital marketing?

Unlike traditional forms of advertising like TV, radio, and print media, digital advertising is much easier for the everyday person to do versus having to use a specialised media buying service. It can be as simple as entering your credit card details. Assuming you have a plan including clear marketing objectives, a definable target market, and a decision on marketing levers, you are almost ready to advertise.

It is important to have some creative content that will actually convey your message and resonate with a customer. You need to ensure there is a customer benefit and 'call to action' - why should the customer be interested and how can they get in contact with you? The final part is to make it visually appealing. Here the organisation would benefit best with the hire of a graphic designer.

Not that these are the only or even right solutions for your circumstances, but the most popular means to deliver a digital advertisement is through Google, or Facebook. Both these organisations have tutorials, guides, tools, etc. to lead you through the process and pay with a credit card to start the advertising.

Hints;

• Whilst using digital marketing makes bold claims around specific targeting and measurement the reality is not always quite as accurate. Errors do occur and you should always use actual sales improvement as a true measure of success.

• While the internet is a powerful medium, you can benefit from using a mix of traditional advertising like direct mail, radio or outdoor and digital marketing to reach your target audience.

• Digital advertising is bought in an auction environment. The more buyers for the same digital assets drives prices up.

Better targeting of customers;

Digital marketing or advertising uses the internet to target only those customers you specify. It is possible to track those customers through to a sale which helps you determine if you should invest any further money in the same approach.  Digital advertising can be specific to your local area or enable you to reach a global audience. It is very data-driven and if used correctly is a very powerful marketing tool.

Budget - How much money will you spend, and on what?
As you outline a promotional plan, you will need to have a budget in place so you can determine which activities you can afford while staying within your budget. Unfortunately, most new small businesses have a limited budget when it comes to marketing, so creating a promotional plan that works with the funds you have available is vital.

You may have an annual marketing budget, but it will also be necessary to break it down into separate monthly budgets so you can track results and modify the promotional plan to focus on the activities that provide you with the biggest return on investment.

This Microsoft template helps you identify possible expenditures for you to consider when creating a marketing budget. Download a copy of  Marketing budget plan estimates.

Ethically and Culturally Appropriate Strategies

A major consideration in crafting marketing objectives is the company’s mission, vision, purpose and values to which the marketing objectives should be aligned with. The principles that are captured in these statements are those that must be practiced and implemented by the employees headed by the business owners, directors and senior managers.  

Mission and vision are the organisation’s statements that basically answer the questions who we are, what we do, what we value, and where we want to go.  Organisations whose mission and vision are clearly communicated, widely understood, and collectively shared by the employees, generally perform better compared to those who do not have them or those who do not practice them.  Success in the organisation’s overall performance is also dependent on the effective implementation of strategies that are directly aligned with the organisation’s mission and vision.

The mission is an organisation’s statement that captures its reason for being and how it intends to serve its key stakeholders that include customers, employees and investors. Vision, on the other hand, is a declaration of the organisation’s aspirations and purpose which are by nature always future oriented.  Aspirations and purpose as important elements of a vision statement are captured in a way that inspire the employees to be always at their best.  Understanding the organisation’s purpose gives employees a sense of ownership on how they impact the lives of the clients and customers they serve. 

Ethical marketing is about creating morally right marketing decisions.  It refers to the application of marketing ethics into the marketing process. The morality of the marketing decision can incorporate;

• any part of marketing.

• sourcing of raw materials.

• staff employment.

• product pricing.

• advertising.

Each person's view of morality is different, and it is based on personal values and experiences. This forms a challenge for companies who want to pursue ethical marketing in a manner that will appeal to all customers.

When developing a marketing campaign, the impact that culture can have on consumer buying behaviour should never be underestimated. Increasing your tolerance, acceptance and understanding of cultural differences is essential if your marketing objectives are to be accomplished.

There is a number of significant cultural elements that marketers need to take into consideration when products are designed, promotions developed, and distribution systems implemented. These elements include values, beliefs, thought processes, symbols, traditions, religion and language. Awareness and understanding of different cultures is required to ensure that you don't accidently or carelessly offend people. It is essential that you remain sensitive and tolerant to various points of view and ensure that your marketing doesn't contain any symbolism that could be offensive in any culture.

The increasing trend of 'fair trade' is an example of the impact of ethical marketing.

 

Terms relating to developing marketing strategies;

• Positioning - How marketers want customers to see their product.

• Market Segmentation - Dividing up the market into groups of customers.

• Packaging - The way in which a product is presented.

• Branding The name and/or logo connected with a product.

• Pricing Method - The overall approach to pricing products: cost-based, market-based, or competition-based.

• Pricing Method Market-Based -The price is set based on market forces of demand and supply.

• Pricing Method Cost- Based - The price is based on the costs of making the good and a markup on these costs.

• Pricing Method Competition-Based - The price is set with reference to the prices set by competitors. Pricing may require charging the same price as competitors, or higher or lower prices.

• Pricing Strategies - Different pricing techniques to achieve business objectives: skimming, penetration, loss leaders, and price points.

• Price Skimming - Charging high prices.

• Penetration Pricing - Charging relatively low prices in order to drive up sales.

• Loss Leaders - Goods that are sold below cost price to attract customers in the hope that they will then be persuaded to buy other full-priced products.

• Price Points - Price points are specific prices at which customers are more likely to buy a product for emotional reasons.

• Relationship Marketing - Developing long-term relationships with customers so that the business can sell additional goods to them in the future.

• Sales Promotions - Promotional activities designed to generate interest in a product.

• Publicity and Public Relations - Creating a positive image for the company/product without paying for advertisements.

 

For more information and definitions on all things 'Marketing', relating to small business, refer to Marketing Essentials Explained.

Presenting a clear and measurable return on investment on marketing spend is now becoming the norm, as it should do. Marketing plays for limited corporate resources with other functions in any business and must justify its portion.

Monitoring and measuring the success of your Marketing Strategy is essential to remain on track with your business goals and objectives. For each advertising or promotional activity, maintain records and determine the success of each campaign. This will inform future marketing activity and provide valuable information on managing spend across the marketing mix. 

Method of analysing costs and benefits of marketing strategies;

Cost-Benefit Analysis (also known as CBA and Benefit-Cost Analysis) is a quick and simple technique that you can use for non-critical financial decisions. As its name suggests, CBA involves adding up the benefits of a course of action, and then comparing these with the costs associated with it. The results of the analysis are often expressed as a payback period – this is the time it takes for benefits to repay costs. Many people who use it look for payback in less than a specific period, for example 3 years.

You can use the technique in a wide variety of situations such as when deciding whether to hire new team members, evaluating a new project or campaign, or change initiative, or determining the feasibility of a capital purchase.

The Cost-Benefit Analysis Process
A cost-benefit analysis (CBA) should begin with compiling a comprehensive list of all the costs and benefits associated with the project or decision.

Costs involved in a CBA might include the following;

• Direct costs would be direct labour involved in manufacturing, inventory, raw materials, manufacturing expenses.

• Indirect costs might include electricity, overhead costs from management, rent, utilities.

• Intangible costs of a decision, such as the impact on customers, employees, or delivery times.

• Opportunity costs such as alternative investments, or buying resources.

• Cost of potential risks such as regulatory risks, competition, and environmental impacts.

Benefits might include;

• Revenue and sales increases from increased production or new product.

• Intangible benefits, such as improved employee safety and morale, as well as customer satisfaction due to enhanced product offerings or faster delivery.

• Competitive advantage or market share gained as a result of the decision.

Example
Custom Graphic Works has been operating for just over a year, and sales are exceeding targets. Currently, two designers are working full-time, and the owner is considering increasing capacity to meet demand. (This would involve leasing more space and hiring two new designers.)

He decides to complete a Cost-Benefit Analysis to explore his choices.

Assumptions
Currently, the owner of the company has more work than he can cope with, and he is outsourcing to other design firms at a cost of $50 an hour. The company outsources an average of 100 hours of work each month.
He estimates that revenue will increase by 50 percent with increased capacity.
Per-person production will increase by 10 percent with more working space.
The analysis horizon is one year: that is, he expects benefits to accrue within the year.

Costs

CATEGORY	DETAILS	COST IN FIRST YEAR
Lease.	750 square feet available next door at $18 per square foot	$13,500
Leasehold improvements.	Knock out walls and reconfigure office space	$15,000
Hire two more designers.	Salary, including benefits Recruitment costs Orientation and training	$75,000 $11,250 $3,000
Two additional workstations.	Furniture and hardware Software licenses	$6,000 $1,000
Construction downtime.	Two weeks at approximately $7,500 revenue per week	$15,000

Benefits

BENEFIT	BENEFIT WITHIN 12 MONTHS
50 percent revenue increase.	$195,000
Paying in-house designers $15 an hour, versus $50 an hour outsourcing (100 hours per month, on average: savings equals $3,500 a month.)	$42,000
10 percent improved productivity per designer ($7,500 + $3,750 = $11,250 revenue per week with a 10 percent increase = $1,125/week.)	$58,500
Improved customer service and retention as a result of 100 percent in-house design.	$10,000
Total	$305,500

He calculates the payback time as shown below:

$139,750 / $305,500 = 0.46 of a year, or approximately 5.5 months.

Source: https://www.mindtools.com/pages/article/newTED_08.htm

 

Evaluating costs and benefits of using different Distribution Channels

A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer. Distribution channels, also known as marketing channels, can include wholesalers, retailers, distributors, and even the Internet. Distribution channels are part of the downstream process, answering the question "How do we get our product to the consumer?" This is in contrast to the upstream process, also known as the supply chain, which answers the question "Who are our suppliers?" - https://www.investopedia.com/marketing-essentials-4689814

When trying to determine marketing mix, evaluating costs and benefits of using different distribution channels is required to be used and considered. 

Different Distribution Channels - A well understood and planned business distribution strategy provides educated decision making on different types of distribution channels. It can also provide tips on the most profitable business distribution strategy for your company.

Using a mixture of distribution channels for your business can help you manage the demand for your goods or services. Different channels can be chosen to reach various market sectors and develop different pricing policies that relate to the income of market segment members. Such an approach allows you to access new markets while bridging temporary reductions in demand through a low-cost channel.

Distribution Types	Distribution Methods
Company Owned or Provided	Direct Sales -Your Own Sales Force -Catalog/Mail Order -Telephone -Internet
Outside Sales Agents	Indirect Sales Independent company that only performs the sales function on your behalf
Distributors/Wholesalers	Indirect Sales Independent company usually carries physical inventory & performs the physical distribution and sales function on your behalf. Can sell to retailers/dealers or direct to end-user.
Franchising	Indirect Sales An independent reseller that purchases the rights to distribution or sales territory of a single product/service brand
Retailers/Dealers	Indirect Sales Independent company that sells to end-users and usually inventories physical product
Value Added Resellers (VARs)	Indirect Sales Independent company that sells to end-users and adds tangible value to the product or service being sold

Given the importance of distribution channels—along with the limited resources generally available to small businesses, it is particularly important for entrepreneurs to make a careful assessment of their distribution channel alternatives. In evaluating possible channels, it may be helpful first to analyse the distribution channels used by competitors. This analysis may reveal that using the same channels would provide the best option, or it may show that choosing an alternative channel structure would give the small business a competitive advantage.

Other factors to consider include the company's pricing strategy and internal resources. As a general rule, as the number of intermediaries included in a channel increase, producers lose a greater percentage of their control over the product and pay more to compensate each participating channel level. At the same time, however, more intermediaries can also provide greater market coverage. You must balance requirements with affordability. - www.referenceforbusiness.com

To select the distribution network appropriate for your business requires assessing a wide number of important factors, such as;

1. Your Business

• the precise nature of your company. 

• the brand of product or service you want to sell.

• the geographical make-up and location of the markets you serve.

• selling costs versus a number of sales process control you desire.

• the profit margin of your products or services.

2. Your Clients

• the preferred purchasing methods of your clients.

• size, quantity, price, convenience, variety.

• importance of Brand.

• required or desired pre-sale services by your customer.

• preferred or required after sales services by your customer.

3. Your Distribution Partners.

• strength of distribution partners to your product or service.

• selective distribution, exclusive distribution, limited product offering, private label.

• motivation of distribution partners.

• ability to manage distribution partners.

• integration of various types of distribution partners.

• cost of distribution partners.

Many businesses use a mix of different distribution channels. For an example, you could increase a direct sales force, that appeals on and services large reputable accounts, with agents, covering smaller customers and performing new business prospecting. There will be other combinations of distribution channels appropriate for your business.

How To Create A Successful Marketing Campaign

Source: https://blog.hubspot.com/marketing/marketing-campaigns

For more tips refer to clever gym advertising campaigns.

For examples of effective ad campaigns view the following videos;

1. Sport Australia: ‘Move It AUS’ campaign encouraging Australians of all backgrounds, ages and abilities to become physically active and move more often.

2. Adidas: 'She'll break barriers' campaign raising awareness of the need for increased visibility leading to bigger dreams and increased participation in sport amongst girls and women.

3. Gymshark: 'Blackout' campaign capitalised on Black Friday as a marketing opportunity by working with the Facebook Creative Group to create an impactful and innovative campaign for social media platforms.