Social Advertising Functions, Theories, Benefits, Challenges, Impact of Online Reputation

Social Advertising involves the use of social media platforms to promote products, services, or messages to targeted audiences. It leverages user data to serve highly relevant advertisements based on demographics, interests, behaviors, and more, ensuring that content reaches those most likely to be interested. Social ads can take various formats, including text, images, video, and interactive elements, and are designed to foster engagement, brand awareness, and conversion. This form of advertising enables precise targeting and real-time performance tracking, making it a powerful tool for marketers.

Social Advertising Functions:

  • Increasing Brand Awareness

Social advertising allows businesses to expand their reach and increase brand visibility by promoting their products or services to a wider audience on social media platforms. Through targeted ad campaigns, businesses can introduce their brand to new potential customers and build recognition among their target demographic.

  • Driving Traffic to Websites or Landing Pages

Social advertising enables businesses to drive traffic to their websites, blogs, or specific landing pages where they can showcase their products, services, or content in more detail. By including compelling call-to-action (CTA) buttons or links in their ads, businesses can direct social media users to take desired actions, such as making a purchase, signing up for a newsletter, or downloading an app.

  • Generating Leads and Conversions

Social advertising campaigns can be designed to capture leads and drive conversions by encouraging users to take specific actions, such as filling out a contact form, requesting a quote, or making a purchase. By targeting audiences with relevant and persuasive ad content, businesses can attract qualified leads and increase their conversion rates.

  • Building Engagement and Relationships

Social advertising facilitates engagement with audiences by encouraging likes, comments, shares, and other interactions with ad content. By creating engaging and interactive ads, businesses can foster meaningful relationships with their target audience, increase brand loyalty, and encourage advocacy and word-of-mouth referrals.

  • Promoting Products or Services

Social advertising allows businesses to showcase their products or services to potential customers in a visually appealing and compelling way. By highlighting key features, benefits, and unique selling propositions (USPs), businesses can attract the attention of their target audience and influence purchasing decisions.

  • Targeting Specific Audiences

One of the key functions of social advertising is the ability to target specific audience segments based on demographics, interests, behaviors, and other criteria. By leveraging advanced targeting options provided by social media platforms, businesses can ensure that their ads are seen by the most relevant audience segments, increasing the likelihood of engagement and conversions.

  • Measuring and Optimizing Campaign Performance

Social advertising provides valuable insights into campaign performance, allowing businesses to track key metrics such as reach, impressions, clicks, conversions, and return on investment (ROI). By analyzing these metrics, businesses can identify what’s working well and optimize their ad campaigns for better results over time.

  • Retargeting and Remarketing

Social advertising enables businesses to retarget or remarket to users who have previously interacted with their brand or website. By serving targeted ads to users who have shown interest but may not have completed a desired action, businesses can re-engage them and encourage them to convert, thereby maximizing their marketing ROI.

  • Driving Offline Sales and Store Visits

For businesses with physical locations, social advertising can drive foot traffic to brick-and-mortar stores or encourage users to visit offline events or promotions. By targeting users based on geographic proximity or interests, businesses can effectively reach local audiences and drive offline sales and conversions.

  • Gaining Competitive Advantage

Social advertising allows businesses to stay competitive in the digital marketplace by maintaining a strong presence on social media platforms. By continuously engaging with their target audience through targeted ad campaigns, businesses can gain a competitive advantage, increase market share, and stay top-of-mind with consumers.

Social Advertising Theories:

  • AIDA Model

The AIDA model stands for Attention, Interest, Desire, and Action. This framework describes the stages a consumer goes through before making a purchase decision. Social advertising aims to first grab the audience’s attention, then generate interest in the product or service, foster a desire for it, and finally encourage action, such as making a purchase or signing up for more information.

  • Hierarchy of Effects Model

Similar to AIDA, the Hierarchy of Effects Model outlines the process by which advertising influences consumer behavior. It includes three main stages: cognitive (awareness/knowledge), affective (feeling/interest/desire), and conative (action). This model suggests that effective advertising must first educate the audience, then create a favorable impression, and ultimately prompt action.

  • Elaboration Likelihood Model (ELM)

The ELM proposes two routes to persuasion: the central route and the peripheral route. The central route involves careful and thoughtful consideration of the persuasive information (high involvement), while the peripheral route involves less scrutiny and is influenced by superficial cues (low involvement). Social advertising can target audiences through both routes depending on the context and the audience’s level of involvement with the subject matter.

  • Social Cognitive Theory

This theory emphasizes the role of observational learning, imitation, and modeling in affecting behavior. In the context of social advertising, this suggests that people can learn and adopt new behaviors or attitudes by observing the actions and outcomes of others in social media contexts. Influencer marketing, where influencers endorse products or behaviors, leverages this theory.

  • Uses and Gratifications Theory

This theory suggests that individuals actively choose media sources and content based on their own needs and desires, such as entertainment, information, personal identity, and social integration. Understanding these motivations can help advertisers create content that resonates with the audience’s specific needs and preferences, making social advertising more effective.

  • Theory of Reasoned Action & Theory of Planned Behavior

These theories focus on the relationship between attitudes, intentions, and behaviors. They suggest that a person’s behavior is determined by their intention to perform the behavior, which is in turn influenced by their attitude towards the behavior and subjective norms. In social advertising, this implies that changing attitudes or perceived norms through persuasive messaging can influence intentions and ultimately, behaviors.

  • Psychological Reactance Theory

This theory posits that individuals have an innate desire for freedom and autonomy. When they perceive that their freedom is being threatened or restricted, they experience reactance, a motivational state aimed at restoring that freedom. In social advertising, overly aggressive or forceful messaging can trigger reactance, leading consumers to ignore or reject the message. Thus, a more subtle or empowering approach may be more effective.

  • Diffusion of Innovations Theory

This theory explains how, why, and at what rate new ideas and technology spread through cultures. Social advertising can play a key role in the diffusion process by raising awareness and influencing opinions about innovations. Marketers can target early adopters in social networks to accelerate the adoption process among the wider population.

Social Advertising Benefits:

  • Targeted Reach

Social advertising platforms offer sophisticated targeting options based on demographics, interests, behaviors, and more. This allows advertisers to reach specific segments of their audience with precision, ensuring that their message is seen by users who are most likely to be interested in their products or services.

  • Enhanced Engagement

Social media inherently encourages interaction, and social ads are designed to capitalize on this. Ads can be liked, commented on, shared, and saved, allowing brands to engage directly with their audience. This engagement not only increases brand visibility but also fosters a sense of community and loyalty among consumers.

  • Cost-Effectiveness

Compared to traditional advertising channels, social advertising can be highly cost-effective. Platforms often operate on a pay-per-click (PPC) or impression basis, meaning you only pay when someone interacts with your ad. This, combined with precise targeting, can lead to higher ROI as your advertising budget is spent more efficiently.

  • Measurable Results

Social advertising platforms provide comprehensive analytics and reporting tools that allow advertisers to measure the performance of their campaigns in real-time. Metrics such as reach, impressions, clicks, conversions, and engagement rates help advertisers understand what works and what doesn’t, enabling them to optimize their campaigns for better results.

  • Brand Awareness and Visibility

Social ads can significantly boost brand awareness and visibility among a wider audience. Even users who don’t click on your ads will still see your brand name and message, increasing overall exposure. This can be especially beneficial for new or smaller brands looking to establish themselves in a competitive market.

  • Speed and Flexibility

Social advertising campaigns can be launched quickly and adjusted in real-time based on performance. This flexibility allows advertisers to respond to market trends, consumer behavior changes, or other external factors, ensuring their messaging remains relevant and effective.

  • Access to Mobile Users

With the majority of social media usage occurring on mobile devices, social advertising provides direct access to users who are on the go. Mobile-optimized ads can drive traffic to mobile-friendly websites or apps, catering to the growing trend of mobile commerce and consumption.

  • Content Promotion

Social advertising is an effective way to promote content, such as blog posts, videos, or online events, to a broader audience. This can drive traffic to your website, increase content engagement, and support your content marketing and SEO strategies.

  • Retargeting Opportunities

Social advertising platforms offer retargeting options, allowing advertisers to show ads to users who have previously interacted with their brand, visited their website, or shown interest in similar products. Retargeting helps keep your brand top-of-mind and can increase conversion rates by targeting users who are already familiar with your brand.

  • Competitive Advantage

Employing a strategic social advertising campaign can provide a competitive advantage, especially if your competitors are slow to adopt digital marketing practices. By effectively leveraging social ads, you can capture market share, increase sales, and strengthen your brand position.

Social Advertising Challenges:

  • Ad Fatigue

Consumers are bombarded with advertisements across all platforms daily, leading to ad fatigue. This occurs when audiences become so accustomed to seeing ads that they start ignoring them, or worse, become irritated by their presence. Crafting creative, engaging, and varied content is essential to combat ad fatigue and maintain audience interest.

  • Platform Algorithm Changes

Social media platforms frequently update their algorithms, which can significantly impact the visibility and performance of ads. What works today might not work tomorrow, forcing advertisers to continuously adapt their strategies to ensure their content remains visible to their intended audience.

  • Rising Costs

Competition for ad space on popular social media platforms is intense, leading to rising costs. As more businesses recognize the value of social advertising, the cost of achieving significant reach and engagement increases, making it challenging for smaller businesses with limited budgets to compete.

  • Ad Blockers

The widespread use of ad blockers poses a significant challenge to social advertising. With a significant portion of internet users employing ad blockers to enhance their online experience, reaching the intended audience becomes more difficult, necessitating alternative strategies to engage these users.

  • Maintaining Relevance

The fast-paced nature of social media demands that content be timely and relevant. However, maintaining relevance while also producing high-quality, impactful ads can be challenging, especially for businesses that may not have the resources to create content at the pace required by social media trends.

  • Privacy Concerns and Regulation

Increasing concerns about privacy and the introduction of strict data protection regulations (such as GDPR in Europe) impact how advertisers can target and reach audiences on social media. Advertisers must navigate these regulations carefully to avoid penalties while also addressing consumer concerns about privacy and data security.

  • Measuring ROI

While social media platforms offer various analytics tools, accurately measuring the return on investment (ROI) of social advertising campaigns can be challenging. Determining the actual impact of social ads on sales and conversions requires a deep understanding of analytics and often, integration with other marketing and sales data.

  • Audience Targeting

Although social media platforms provide advanced targeting options, effectively reaching the most relevant audience segments requires expertise and ongoing optimization. Misaligned targeting can lead to wasted ad spend and poor campaign performance.

  • Content Saturation

The sheer volume of content on social media means that even high-quality ads can get lost in the noise. Standing out requires not only creativity and high production values but also a deep understanding of what resonates with the target audience.

  • Crisis Management

Social media’s viral nature means that any misstep in advertising can quickly escalate into a public relations crisis. Brands must be prepared to respond swiftly and appropriately to any negative backlash or controversy that arises from their social advertising efforts.

Social Advertising Impact of Online reputation:

Social advertising significantly impacts a brand’s online reputation, which is an invaluable asset in the digital age. The intersection of social media advertising and online reputation is crucial, as it can both enhance and harm how a brand is perceived by the public.

  • Boosts Visibility and Awareness

Social advertising can dramatically increase a brand’s visibility, putting it in front of potential new customers and thereby expanding its reach. While this heightened visibility is beneficial for brand awareness, it also means any missteps can be more visible and potentially more damaging to the brand’s reputation.

  • Shapes Brand Perception

The content and tone of social ads contribute to the overall perception of the brand. Creative, engaging, and value-driven ads can foster positive associations, while ads that are perceived as intrusive, misleading, or irrelevant can lead to negative perceptions. The way a brand presents itself in ads can reinforce or detract from its desired brand image.

  • Influences Customer Sentiment

Customer sentiment can be significantly influenced by social advertising, especially when ads are targeted and personalized. Positive customer experiences shared through social ads can bolster a brand’s reputation by showcasing satisfaction and loyalty. Conversely, if customers feel bombarded by ads or if the ads do not meet their expectations, sentiment can quickly turn negative.

  • Encourages Engagement and Interaction

Social advertising encourages direct engagement and interaction with the brand. Positive interactions, such as prompt responses to comments or questions on ads, can enhance a brand’s reputation by demonstrating attentiveness and customer care. However, negative interactions or a lack of response can harm the brand’s reputation.

  • Provides Opportunities for Feedback

Social ads offer a platform for immediate feedback from consumers. While positive feedback can enhance a brand’s reputation, negative feedback can be damaging if not managed correctly. How a brand addresses criticism—taking feedback into account and engaging constructively with dissatisfied customers—can turn potential reputation damage into an opportunity to demonstrate commitment to customer satisfaction.

  • Affects Search Engine Reputation

Social advertising can also impact a brand’s online reputation through search engines. Engaging ads that lead to increased traffic and social shares can improve search engine rankings. Additionally, positive social media mentions and interactions can contribute to a stronger online presence, further influencing how the brand is perceived in search engine results.

  • Risk of Public Backlash

A misjudged ad campaign can lead to public backlash, significantly damaging a brand’s reputation. Social media amplifies both positive and negative responses, and a controversial or poorly received ad can quickly become viral for the wrong reasons. Brands must be mindful of cultural sensitivities, social issues, and audience preferences to avoid reputational damage.

  • Mitigates Crisis Through Rapid Response

Social advertising platforms offer a unique advantage in crisis management. Brands can use social ads to respond quickly to any reputational threats, issue apologies, or clarify misunderstandings. This rapid response capability can help mitigate damage to the brand’s reputation and demonstrate accountability.

Social Technology and its Marketing influence in India

Social Technology has significantly reshaped the landscape of marketing in India, creating new paradigms in how businesses interact with their customers, understand consumer behavior, and execute their marketing strategies. This transformation is particularly evident in the rise of social media platforms, which have become central to the digital marketing strategies of companies across various sectors.

Rise of Social Media in India

India has witnessed an exponential increase in internet penetration in the last decade, largely due to more affordable data plans and the widespread availability of budget smartphones. This digital revolution has catapulted social media to the forefront of consumer interaction, making platforms like WhatsApp, Facebook, Instagram, and Twitter household names. As of my last update in April 2023, India is one of the largest markets for social media globally, with hundreds of millions of users actively engaging on these platforms daily.

Consumer Engagement and Brand Interaction

Social technology has democratized brand interactions, enabling consumers to engage directly with brands in real-time. This two-way communication fosters a sense of belonging and loyalty among consumers, as they feel heard and valued by the brands they follow. For marketers, social media provides an invaluable tool for garnering feedback, managing customer service inquiries, and monitoring consumer sentiment.

Personalized Marketing

The advent of social technology has heralded a new era of personalized marketing. With access to vast amounts of user data, brands can tailor their marketing messages to individual consumers based on their preferences, browsing history, and purchase behavior. This level of personalization enhances the effectiveness of marketing campaigns and improves consumer satisfaction by providing relevant and timely content.

Influencer Marketing

Influencer marketing has emerged as a powerful strategy in India, driven by the widespread reach and persuasive power of social media influencers. These individuals, ranging from celebrities to niche content creators, wield significant influence over their followers’ purchasing decisions. Brands collaborate with influencers to promote products and services, leveraging their authenticity and trustworthiness to reach and engage targeted audiences effectively.

Data Analytics and Consumer Insights

Social technology has made it possible to collect and analyze vast amounts of data, providing marketers with deep insights into consumer behavior, preferences, and trends. This data-driven approach enables companies to make informed decisions, predict market trends, and tailor their marketing strategies to meet the evolving needs of their target audiences.

Challenges in Social Technology Marketing

Despite its advantages, marketing through social technology in India faces several challenges. These include concerns over data privacy and security, the spread of misinformation, and the need for regulatory compliance. Additionally, the sheer volume of content on social media makes it increasingly difficult for brands to stand out and capture the attention of their target audiences.

Opportunities in the Digital Age

The challenges notwithstanding, the opportunities presented by social technology for marketing in India are immense. The ongoing digital transformation offers businesses the chance to innovate and explore new marketing models, such as augmented reality (AR) experiences, chatbots for customer service, and blockchain for enhancing transparency and trust.

User engagement on Social Networks, Benefits

User Engagement refers to the measure of a user’s interaction and involvement with a digital product or service, such as a website, app, or online platform. It is determined by various activities, including how frequently and how long users visit, their interaction with content (likes, shares, comments), and their participation in any calls to action. High user engagement indicates that users find value in the product, leading to increased satisfaction, loyalty, and potentially higher conversion rates for businesses.

User engagement on social networks is a critical metric for businesses, content creators, and marketers aiming to build a strong online presence, foster community, and drive conversions. Engaging users on social platforms involves creating meaningful interactions that go beyond mere views or followers—it’s about sparking conversations, building relationships, and encouraging users to actively participate with your content.

Understand Your Audience

  • Demographics and Interests:

Know who your audience is, including their age, gender, location, and interests. This information helps tailor content to match their preferences.

  • Behavioral Insights:

Analyze how your audience interacts with different types of content. Identify patterns in what they like, share, and comment on most.

Create Compelling Content

  • ValueDriven Content:

Offer content that educates, entertains, or inspires your audience. Ensure it adds value and addresses their needs or interests.

  • Visual and Interactive Elements:

Use high-quality images, videos, and interactive elements like polls, quizzes, and stories to grab attention and encourage participation.

  • Consistency and Timing:

Maintain a consistent posting schedule and publish content when your audience is most active to increase visibility and engagement.

Foster Community and Interaction

  • Encourage Conversations:

Pose questions, share thought-provoking ideas, or create discussion threads to invite comments and dialogue.

  • UserGenerated Content:

Encourage your followers to share their own stories, photos, or videos related to your brand or niche. Feature their content on your platform to foster a sense of community and belonging.

  • Respond to Comments and Messages:

Engage with your audience by replying to comments, answering questions, and acknowledging feedback. Personalized interactions can significantly boost engagement and loyalty.

Leverage Social Media Features

  • Stories and Live Streams:

Utilize platform-specific features like Instagram Stories or Facebook Live to share behind-the-scenes content, host Q&A sessions, or announce new products. Live interactions can create a sense of immediacy and exclusivity.

  • Hashtags and Trends:

Use relevant hashtags and participate in trending topics to increase the discoverability of your content and engage with broader conversations.

Run Contests and Promotions

  • Giveaways and Contests:

Organize contests or giveaways that require participants to engage with your content (e.g., by liking, commenting, or sharing) to enter. This can rapidly increase engagement and reach.

  • Exclusive Offers:

Provide special offers, discounts, or early access to products/services for your social media followers. Highlight the exclusivity of these offers to encourage engagement and conversions.

Analyze and Adapt

  • Engagement Metrics:

Regularly monitor engagement metrics such as likes, comments, shares, and time spent on content. Use these insights to understand what resonates with your audience.

  • A/B Testing:

Experiment with different types of content, posting times, and engagement strategies to see what works best. Adapt your approach based on data-driven insights.

Personalization and Segmentation

  • Tailored Content:

Use data analytics to segment your audience and tailor content to different groups based on their preferences and behavior.

  • Personalized Messaging:

Implement personalized messaging in your responses or when reaching out to users. Customization can significantly enhance engagement levels.

Build Partnerships and Collaborations

  • Influencer Partnerships:

Collaborate with influencers who share your brand values and have a strong connection with your target audience. This can help tap into new communities and increase engagement.

  • Brand Collaborations:

Partner with other brands to co-create content or run joint campaigns. This can introduce your brand to new audiences and foster mutual engagement.

User engagement on Social Networks Benefits:

  • Enhanced Brand Visibility

Engaged users are more likely to share content with their networks, significantly increasing brand exposure and visibility. Each share, comment, or like increases the reach of your content, introducing your brand to potential new followers and customers.

  • Improved Brand Loyalty

Regular interaction with your audience builds a sense of community and loyalty. Users who engage with your content feel a closer connection to your brand, making them more likely to remain loyal customers and advocates for your products or services.

  • Valuable Customer Insights

Engagement through comments, polls, and discussions provides direct insights into your audience’s preferences, opinions, and behaviors. This invaluable feedback can guide product development, content strategy, and customer service improvements.

  • Increased Website Traffic

Social media can be a powerful driver of traffic to your website. Engaging posts that include calls to action or links back to your website can encourage users to explore your products or services further, leading to increased web traffic and potential conversions.

  • Higher Conversion Rates

Engaged users are more invested in your brand and therefore more likely to convert. By fostering a strong relationship through engagement, you’re nurturing potential leads through the sales funnel, from awareness to purchase.

  • Better Customer Service

Social networks provide an immediate platform for addressing customer concerns and questions. Prompt and engaging customer service on these platforms can improve satisfaction and public perception of your brand.

  • Competitive Advantage

High user engagement can set your brand apart from competitors. An active and engaged social media presence signifies a brand that values its customers and is attentive to their needs, preferences, and feedback.

  • Enhanced Content Performance

Platforms like Facebook, Instagram, and Twitter use algorithms that prioritize content with high engagement. This means that likes, comments, and shares can improve the visibility of your posts, making them more likely to be seen by a wider audience.

  • CostEffective Marketing

Engaging with users on social networks is a cost-effective way to market your brand. Compared to traditional advertising, social media allows for more direct and personal interaction with a global audience at a fraction of the cost.

  • Boosted SEO Rankings

Although social media signals do not directly influence search engine rankings, the increased web traffic resulting from active social engagement can positively affect SEO. More engagement means more visibility, leading to more shares and ultimately more backlinks to your website.

  • Stronger Community

By fostering engagement, you’re building a community around your brand. A strong community can act as brand ambassadors, spreading positive word-of-mouth and supporting your brand in online and offline spaces.

Cyber Security Bangalore University BBA 5th Semester NEP Notes

Unit 1 [Book]

Introduction to Cyber Security, Defining Cyberspace VIEW
Overview of Computer and Web-technology VIEW
Architecture of Cyberspace VIEW
Communication and Web Technology VIEW
Internet VIEW
World wide web VIEW
Advent of internet VIEW
Internet infrastructure for Data Transfer and Governance VIEW
Internet Society VIEW
Regulation of Cyberspace VIEW
Concept of Cyber security, Issues and Challenges of cyber security VIEW
Unit 2 [Book]
Cyber-Crime and Cyber law: Classification of Cyber-crimes, Common cyber-crimes VIEW
Cybercrime targeting Computers and Mobiles VIEW
Cyber-crime against Women and Children VIEW
Cyber-crime financial frauds VIEW
Social engineering attacks, Malware and Ransomware attacks VIEW
Zero Day and Zero Click attacks VIEW
Cybercriminals modus-operandi, Reporting of Cybercrimes, Remedial and Mitigation measures VIEW
Legal perspective of Cyber crime VIEW
IT Act 2000 and its Amendments, Cybercrime, and Offences VIEW
Organizations dealing with Cybercrime and Cyber Security in India VIEW
Case Studies
Unit 3 [Book]
Social Media Overview and Security: Introduction to Social Networks, Types of Social Media, Social Media Platforms, Social media monitoring, Hashtag, Viral content VIEW
Social Media Marketing VIEW
Social Media Privacy, Challenges VIEW
Opportunities and pitfalls in online Social network VIEW
Security issues related to Social media VIEW
Flagging and Reporting of inappropriate content VIEW
Laws regarding posting of inappropriate content VIEW
Best practices for the use of Social media VIEW
Case Studies

Digital Marketing Bangalore University BBA 5th Semester NEP Notes

Unit 1 [Book]
Introduction, Meaning, Need of Digital Marketing VIEW
Digital Marketing Platforms VIEW
Digital Marketing Students VIEW
Digital Marketing Professional VIEW
Email Marketing, Importance of email Marketing VIEW
e-mail Marketing platforms VIEW
Creating e-mailers VIEW
Creating a Contact Management and Segmentation Strategy VIEW
Understanding e-mail Deliverability and Tracking e-mails VIEW
How to Create Effective and Unique e-mail Content VIEW
Outlining the Design of Your Marketing e-mails VIEW
Open Rates and CTR of email VIEW
Drive Leads from e-mail VIEW
What are opt-in lists VIEW
Develop Relationships with Lead Nurturing and Automation VIEW
Content Marketing: Understanding Content Marketing VIEW
Generating Content Ideas VIEW
Planning a Long-Term Content Strategy VIEW
Building a Content Creation Framework VIEW
Becoming an Effective Content Writer VIEW
Extending the Value of Your Content through Repurposing VIEW
How to Effectively Promote Content VIEW
Measuring and Analyzing Your Content VIEW

 

Unit 2 [Book]
Search Engine Optimization (SEO): Meaning, Importance and Its Growth in Recent years VIEW
Ecosystem of a Search Engine, kinds of Traffic VIEW
Keyword Research and Analysis (Free and Paid tool and Extension), Recent Google Updates VIEW
How Google Algorithms Works VIEW
On Page Optimization (OPO) VIEW
Off-Page Optimization VIEW
Misc SEO Tools:
Google Webmaster Tools VIEW
Site Map Creators VIEW
Browser-based analysis Tools VIEW
Page Rank tools VIEW
Pinging and Indexing Tools VIEW
Dead Links identification Tools VIEW
Open Site explorer VIEW
Domain information/who is tools VIEW
Quick Sprout VIEW
Google My Business VIEW

 

Unit 3 [Book]
Google AdWords: Google Ad-Words Fundamentals, Google AdWords Account Structure, Key terminologies in Google AdWords VIEW
How to Create an AdWords account, Different Types of AdWords and its Campaign and Ads creation process, Ad approval process VIEW
Keyword Match Types, Keyword Targeting and Selection (Keyword Planner), Display Planner VIEW
Different Types of extensions, Creating Location extensions, Creating call extensions, Create Review extensions VIEW
Bidding techniques Manual / Auto, Demographic Targeting / Bidding, CPC-based, CPA based and CPM-based accounts VIEW
Google Analytics Individual Qualification (GAIQ) VIEW
Google AdSense: Understanding ad networks and AdSense’s Limitations, Learning which situations are best for using AdSense, Setting up an AdSense account, Creating new ad units, Displaying ads on a website, Configuring channels and ad styles, Allowing and blocking ads, Reviewing the AdSense dashboard, Running AdSense reports and custom reports, Exporting data, Reviewing payee and Account Settings VIEW

 

Unit 4 [Book]
Social Media Marketing (SMM) VIEW
Facebook Marketing VIEW
Twitter Marketing VIEW
LinkedIn Marketing VIEW
Google Plus Marketing VIEW
YouTube Marketing VIEW
Pinterest Marketing VIEW
Snapchat Marketing VIEW
Instagram Marketing VIEW
Social Media Automation Tools VIEW
Social Media Ad Specs VIEW
ROI in Social Media Marketing, Tools and Dashboards VIEW
Reputation Management VIEW
YouTube Advertising (Video Ads), Why should one advertise on YouTube? VIEW
Creating YouTube campaigns, Choose the audience for video ads, Instream ads, In-video ads, In-search ads, In-display ads VIEW
Measuring your YouTube ad performance, Drive leads and Sales from YouTube VIEW
ads Conversions: Understanding Conversion Tracking, Types of Conversions, Setting up Conversion Tracking, Optimizing Conversions, Track offline conversions, Analyzing conversion data, Conversion Optimizer VIEW

 

Unit 5 [Book]
Web Analytics, Need and Importance of Web Analytics VIEW
Introducing Google Analytics, Google Analytics Layout, Basic Reporting VIEW
Basic Campaign and Conversion Tracking VIEW
Google Tag Manager VIEW
Social Media Analytics VIEW
Social CRM and Analytics VIEW
Other Web analytics Tools VIEW
Making better decisions using Analytics Tools VIEW
Common Mistakes Analysts Make VIEW

Digital Marketing Bangalore University B.Com 5th Semester NEP Notes

Unit 1 [Book]
Introduction, Meaning, Need of Digital Marketing VIEW
Digital Marketing Platforms VIEW
Digital Marketing Students VIEW
Digital Marketing Professional VIEW
Email Marketing, Importance of email Marketing VIEW
e-mail Marketing platforms VIEW
Creating e-mailers VIEW
Creating a Contact Management and Segmentation Strategy VIEW
Understanding e-mail Deliverability and Tracking e-mails VIEW
How to Create Effective and Unique e-mail Content VIEW
Outlining the Design of Your Marketing e-mails VIEW
Open Rates and CTR of email VIEW
Drive Leads from e-mail VIEW
What are opt-in lists VIEW
Develop Relationships with Lead Nurturing and Automation VIEW
Content Marketing: Understanding Content Marketing VIEW
Generating Content Ideas VIEW
Planning a Long-Term Content Strategy VIEW
Building a Content Creation Framework VIEW
Becoming an Effective Content Writer VIEW
Extending the Value of Your Content through Repurposing VIEW
How to Effectively Promote Content VIEW
Measuring and Analyzing Your Content VIEW

 

Unit 2 [Book]
Search Engine Optimization (SEO): Meaning, Importance and Its Growth in Recent years VIEW
Ecosystem of a Search Engine, kinds of Traffic VIEW
Keyword Research and Analysis (Free and Paid tool and Extension), Recent Google Updates VIEW
How Google Algorithms Works VIEW
On Page Optimization (OPO) VIEW
Off-Page Optimization VIEW
Misc SEO Tools:
Google Webmaster Tools VIEW
Site Map Creators VIEW
Browser-based analysis Tools VIEW
Page Rank tools VIEW
Pinging and Indexing Tools VIEW
Dead Links identification Tools VIEW
Open Site explorer VIEW
Domain information/who is tools VIEW
Quick Sprout VIEW
Google My Business VIEW

 

Unit 3 [Book]
Google AdWords: Google Ad-Words Fundamentals, Google AdWords Account Structure, Key terminologies in Google AdWords VIEW
How to Create an AdWords account, Different Types of AdWords and its Campaign and Ads creation process, Ad approval process VIEW
Keyword Match Types, Keyword Targeting and Selection (Keyword Planner), Display Planner VIEW
Different Types of extensions, Creating Location extensions, Creating call extensions, Create Review extensions VIEW
Bidding techniques Manual / Auto, Demographic Targeting / Bidding, CPC-based, CPA based and CPM-based accounts VIEW
Google Analytics Individual Qualification (GAIQ) VIEW
Google AdSense: Understanding ad networks and AdSense’s Limitations, Learning which situations are best for using AdSense, Setting up an AdSense account, Creating new ad units, Displaying ads on a website, Configuring channels and ad styles, Allowing and blocking ads, Reviewing the AdSense dashboard, Running AdSense reports and custom reports, Exporting data, Reviewing payee and Account Settings VIEW

 

Unit 4 [Book]
Social Media Marketing (SMM) VIEW
Facebook Marketing VIEW
Twitter Marketing VIEW
LinkedIn Marketing VIEW
Google Plus Marketing VIEW
YouTube Marketing VIEW
Pinterest Marketing VIEW
Snapchat Marketing VIEW
Instagram Marketing VIEW
Social Media Automation Tools VIEW
Social Media Ad Specs VIEW
ROI in Social Media Marketing, Tools and Dashboards VIEW
Reputation Management VIEW
YouTube Advertising (Video Ads), Why should one advertise on YouTube? VIEW
Creating YouTube campaigns, Choose the audience for video ads, Instream ads, In-video ads, In-search ads, In-display ads VIEW
Measuring your YouTube ad performance, Drive leads and Sales from YouTube VIEW
ads Conversions: Understanding Conversion Tracking, Types of Conversions, Setting up Conversion Tracking, Optimizing Conversions, Track offline conversions, Analyzing conversion data, Conversion Optimizer VIEW

 

Unit 5 [Book]
Web Analytics, Need and Importance of Web Analytics VIEW
Introducing Google Analytics, Google Analytics Layout, Basic Reporting VIEW
Basic Campaign and Conversion Tracking VIEW
Google Tag Manager VIEW
Social Media Analytics VIEW
Social CRM and Analytics VIEW
Other Web analytics Tools VIEW
Making better decisions using Analytics Tools VIEW
Common Mistakes Analysts Make VIEW

Online marketing reach in the rural market

There are various differences between urban market and rural market. So, it is necessary to make different market research design for rural areas as compared to urban market.

The various difference between urban and rural market research are as follows:

Difference # Urban Market Research:

  1. Respondents: Literate, brand aware, individuals respond individually.
  2. Time: Willing to respond, have time pressures, spare little time for researchers.
  3. Accessibility: Easy to access
  4. Secondary data source: Internal data, syndicate research, published media, many sources & large data.
  5. Primary data source: Large number of middlemen, experts, sales force, consumers, opinion leaders.
  6. Sampling: Respondents form relatively homogenous group. Income can be a criterion.
  7. Data collection: Use of sophisticated instrument, style and administration. Respondents are comfortable with number ratings and timeliness.

Difference # Rural Market Research:

  1. Respondents: Semi-literate or illiterate, brand unaware generally group responses.
  2. Time: Hesitant but devotes time.
  3. Accessibility: Tough to access, geographical distances and psychological approaches are barriers. Do not speak easily to outsiders.
  4. Secondary data source: Very few sources and less data.
  5. Primary data source: Less number of all categories.
  6. Sampling: Heterogeneous groups. Income and land holding to be carefully applied.
  7. Data collection: Require simplified instruments. Respondents comfortable with colour, pictures and stories.

In the context of rural marketing, this approach is necessary for both high value consumer durable items and capital agriculture inputs. It has been found by experience that the rural consumers do not decide on the bests of information provided by the companies or their advertisements. They prefer to consult others who actually possess the various brand of the product and also get their experience in using them.

Rural consumer makes well-considered buying decision for a specified brand often after lot of consultation with the opinion leaders. But opinion leaders change with the product category.

While for agri-inputs, the opinion leaders group consists of progressive farmers, agri-extension workers and village leaders, for other product categories, the opinion leader group consists of friends, well-informed relatives(particularly those working in nearly towns), educated youth and to an extent traditional village leaders. Dealers to play a major role in influencing the choice of a brand at the point of sale.

The electricians, mechanics and technicians which are found in almost all villages to service and repair products could be provided with free accessories, tools and their shops could be painted with company logo and brand name. These persons considered as specialists in their field could act as local brand ambassadors and could promote the products for the company as they are acting as opinion leaders for products in their field and their advice is sought by the villagers and given weight age in the purchase decision.

The following play the role of opinion leader in the case of corresponding product category:

(a) Successful farmer – for farm inputs

(b) Village youth who go to city – for lifestyle products

(c) School children – for personal care products

Asian paints launched its Utsav range during the Pre-Diwali season. Salesmen selected the opinion leaders in village and painted the village post office, library, or the house of the pardhaan to demonstrate that paint does not peel off. Salesman organized meets at the local dealers, where village painters were invited.

Integrated campaigns, which are – low cost, scalable, offer multiple contacts, and are interactive in nature, help in increasing brand penetration and frequency of usage need to be developed for the rural market.

Promotional activity must generate a lot of word of mouth publicity so that the brand is on top of mind when rural consumer purchases a product. Therefore, touch and feel aspect must be built into promotional activity. Brooke-bond organized marches in rural areas with band, music and caparisoned elephants to promote their brands of tea.

  1. Folk Media:

There is a good audience available for different folk media in the rural world. Marketer can effectively utilize some of these to take his message to the rural audience. Different folk’s media are popular in different regions; therefore the folk medium selected must be popular in the region; then only it will be able to provide the desired level of audiences, some of the folk media, which can be used as a promotion vehicle, are described here below.

(a) Puppetry:

In rural India puppetry is an avenue for entertainment and creative expression, which might be ritually scared and meaningful as a means of social communication and vehicle of social transformation.

It is an excellent way of storytelling through the moving images called puppets. The cost of this medium is very less and is very popular in Rajasthan, Orissa and Haryana. People of all ages and genders can be targeted by incorporating the product in the narrative.

Song and Drama Division of the Government of India makes wide use of puppets in its campaigns to promote various government projects, several other organizations, government, semi-government and private, have also used puppets in support of individual schemes.

For example – Life Insurance Corporation of India used puppets to educate rural masses about Life Insurance. These plays were shown to the audience in villages in UP, Bihar and MP. The number of inquiries at local offices of LIC during the period immediately following the performance was compared with normal frequency and found to be considerably higher. The field staff of the corporation also reported a definite impact on the business.

(b) Folk Theatre:

Folk theaters are mainly short and rhythmic in form. The simple tunes help in informing and educating the people in informal and interesting manner. It has been used as an effective medium for social protest against injustice, exploitation and oppression. Government has used this media for popularizing improved variety of seeds, fertilizers, etc.

(c) Nautanki:

It is a folk dance drama which is performed in Uttar Pradesh on a make shift stage surrounded by a tent. It is a prime attraction in the village fairs amongst all age groups because of its narrative style and rustic humour. This folk media provides captive audience and marketers can use it as a platform to promote their products as rural audience believes that the performers are more credible than conventional media like TV or radio.

(d) Tamasha:

It involves seductive Lavni dance drama and interactive session with the audience. As only males are the audience therefore products meant for males can be effectively promoted through this media. The script can be modified to incorporate the product benefit, advantages and its availability.

(e) Birha:

Started during the freedom struggle to promote and develop the independence movement through the medium of songs, Birha is song about the current social realities of the day and is sung at gatherings, which draw big crowds. It is a musical night organized in the state of Uttar Pradesh and is popular amongst all the sections of the society. This is a very effective medium to deliver social messages and can be used for promotion of products that are very relevant for the rural masses.

Cultural practices and traditions of villages should always be given adequate weight age while deciding on the promotional strategies. A broad generalization is less likely to deliver effective results in the rural areas. Therefore, it is important to pilot-run a campaign and measures its effectiveness at a very small scale in one or two villages before launching a large-scale operation in similar socio-cultural settings. It is quite possible that a promotional campaign, which was successful in one area, might not only be ineffective but also boomerangs in the other.

While any one can think of ideas for below the line activities it requires conscious efforts by professionals to connect with the audience with the right communication package-which takes the core message of the brand and communicates it in a language, idiom, style and situations, which is easily understood by the target audience

Product life cycle strategies in rural markets

Development

The development stage of the product life cycle is the research phase before a product is introduced to the marketplace. This is when companies bring in investors, develop prototypes, test product effectiveness, and strategize their launch. Due to the nature of this stage, companies spend a lot of money without bringing in any revenue because the product isn’t being sold yet.

This stage can last for a long time, depending on the complexity of the product, how new it is, and the competition. For a completely new product, the development stage is hard because the first pioneer of a product is usually not as successful as later iterations.

Development Stage Marketing Strategy

While marketing typically begins in the introduction stage, you can begin to build “buzz” around your product by securing the endorsement of established voices in the industry. You can also publish early (and favorable) consumer research or testimonials. Your marketing goal during this stage is to build upon your brand awareness and establish yourself as an innovative company.

Introduction

The introduction stage is when a product is first launched in the marketplace. This is when marketing teams begin building product awareness and reaching out to potential customers. Typically, when a product is introduced, sales are low and demand builds slowly.

Usually, this phase is focused on advertising and marketing campaigns. Companies work on testing distribution channels and try to educate potential customers about the product.

Introduction Stage Marketing Strategy

This is where the fun begins. Now that the product is launched, you can actually promote the product using inbound marketing and content marketing. Education is highly important in this stage. Your target consumer must know what they’re buying before they buy it. If your marketing strategies are successful, the product goes into the next stage; growth.

Growth

During the growth stage, consumers have accepted the product in the market and customers are beginning to truly buy in. That means demand and profits are growing, hopefully at a steadily rapid pace.

The growth stage is when the market for the product is expanding and competition begins developing. Potential competitors will see your success and will want in.

Growth Stage Marketing Strategy

During this phase, marketing campaigns often shift from getting customers’ buy-in to establishing a brand presence so consumers choose them over developing competitors. Additionally, as companies grow, they’ll begin to open new distribution channels and add more features and support services. In your strategy, you’ll advertise these as well.

Maturity

The maturity stage is when the sales begin to level off from the rapid growth period. At this point, companies begin to reduce their prices so they can stay competitive amongst growing competition.

This is the phase where a company begins to become more efficient and learns from the mistakes made in the introduction and growth stages. Marketing campaigns are typically focused on differentiation rather than awareness. This means that product features might be enhanced, prices might be lowered, and distribution becomes more intensive.

During the maturity stage, products begin to enter the most profitable stage. The cost of production declines while the sales are increasing.

Maturity Stage Marketing Strategy

When your product has become a mature offering, you may feel like you’re “sailing by” because sales are steady and the product has been established. But this is where it’s critical to establish yourself as a leader and differentiate your brand.

Continuously improve upon the product as adoption grows, and let consumers know in your marketing strategy that the product they love is better than it was before. This will protect you during the next stage saturation.

  1. Saturation

During the product saturation stage, competitors have begun to take a portion of the market and products will experience neither growth nor decline in sales.

Typically, this is the point when most consumers are using a product, but there are many competing companies. At this point, you want your product to become the brand preference so you don’t enter the decline stage.

Saturation Stage Marketing Strategy

When the market has become saturated, you’ll need to focus on differentiation in features, brand awareness, price, and customer service. Competition is highest at this stage, so it’s critical to leave no doubt regarding the superiority of your product.

If innovation at the product-level isn’t possible (because the product only needs minor tweaks at this point), then invest in your customer service and use customer testimonials in your marketing.

Decline

Unfortunately, if your product doesn’t become the preferred brand in a marketplace, you’ll typically experience a decline. Sales will decrease during the heightened competition, which is hard to overcome.

Additionally, new trends emerge as time goes on, just like the CD example I mentioned earlier. If a company is at this stage, they’ll either discontinue their product, sell their company, or innovate and iterate on their product in some way.

Decline Stage Marketing Strategy

While companies would want to avoid the decline stage, sometimes there’s no helping it especially if the entire market reached a decline, not just your product. In your marketing strategy, you can focus on nostalgia or emphasize the superiority of your solution to successfully get out of this stage.

To extend the product life cycle, successful companies can also implement new advertising strategies, reduce prices, add new features to increase their value proposition, explore new markets, or adjust brand packaging.

The best companies will usually have products at several points in the product life cycle at any given time. Some companies look to other countries to begin the cycle anew.

Now that we’ve gone through stages, let’s review some real-life examples of them in action.

A prime need for any firm to emerge as a strong player in the rural market is by carefully identifying gaps in the rural market and crafting the right product offering for consumers. Chalking out a product strategy for rural market differs in many aspects when compared to urban counter parts. Needs and demand of rural consumer might be contrasting to that of urban consumer and therefore it’s necessary to hit the right chord when entering the rural market. The prime objective is to design products to suit rural requirements.

Conventional wisdom on rural marketing states that the needs of the rural consumers are similar to those of the urban consumers. Hence, the products made to urban specifications should suit the requirements of the rural consumers. However, this is not true in many cases, as there is a market difference between rural and urban environments. For instance, Kerosene or LPG gas stoves, where the flame can be controlled, are used for cooking in urban areas, while an open fire or ‘Chulha’ is used in rural areas. Pressure cookers with handles on one side suit the urban consumers, but not the rural consumers for use on an open fire or a ‘chulha’. Perhaps, a wide-bodied cooker within handles on opposite sides may suit rural requirements. Therefore, while designing and developing products, the requirements of the rural consumers are to be considered and rural-specific products developed.

During the late eighties, shampoo sales boomed when it was introduced in sachet pack, because it suited the consumers in low income groups. Hindustan Motors (HM) launched a utility vehicle the RTV (rural transport vehicle), aimed at rural market. Hence, product development for rural consumers is necessary.

Though marketers are still trying and experimenting ways to successfully tap the rural arena, below are few product strategies which have been widely adopted and have proved themselves to work in the rural landscape:

Small unit packing: This method has been tested by products life shampoos, pickles, biscuits, Vicks cough drops in single tablets, tooth paste, etc. Small packings stand a good chance of acceptance in rural markets. The advantage is that the price is low and the rural consumer can easily afford it.

Another example is the Red Label tea Rs. 3.00 pack which has more sales as compared to the large pack. This is because it is very affordable for the lower income group with the deepest market reach making easy access to the end user satisfying him.

The small unit packings will definitely attract a large number of rural consumers.

New product designs: Keeping in view the rural life style the manufacturer and the marketing men can think in terms of new product designs.

For e.g. PVC shoes and chappals can be considered sited ideally for rural consumers due to the adverse working conditions. The price of P.V.C. items is also low and affordable.

Sturdy products: Sturdiness of a product is an important factor for rural consumers. The experience of torch light dry battery cell manufacturers support this because the rural consumers preferred dry battery cells which are heavier than the lighter ones. For them, heavier weight meant that it has more over and durability. Sturdiness of a product either or appearance is an important for the rural consumers.

Utility oriented products: The rural consumers are more concerned with utility of the product and its appearance Philips India Ltd. Developed and introduced a low cost medium wave receiver named BAHADUR during the early seventies. Initially the sales were good but declined subsequently. On consumer research, it was found that the rural consumer bought radios not only for information and news but also for entertainment.

Brand name: For identification, the rural consumers do give their own brand name on the name of an item. The fertilizers companies normally use a logo on the fertilizer bags though fertilizers have to be sold only on generic names. A brand name or a logo is very important for a rural consumer for it can be easily remembered.

Many times rural consumers ask for ‘peeli tikki’ (Yellow Bar) in case of conventional and detergent washing soap. Nirma made a ‘peeli tikki’ (Yellow Bar) specially for those peeli tikki users who might have experienced better cleanliness with the yellow colored bar as compared to the blue one although the actual difference is only of the color.

Social Media Marketing Bangalore University BBA 3rd Semester NEP Notes

Unit 1 Social Media Introduction [Book]  
Introduction to Social Media VIEW
How to Build a Successful Social Media Strategy, Goal setting VIEW
Overview of Global E-Marketing Issues VIEW
Country and Market Opportunity Analysis VIEW
User engagement on Social Networks VIEW
Social Advertising, Impact of Online reputation VIEW
Social, Media analytics VIEW
Social Technology and its Marketing influence in India VIEW

 

Unit 2 [Book]  
Exploring the use of a Facebook page, Facebook Ad campaign, Facebook groups, Hashtags VIEW
Instagram, Creating automation for Instagram, Audience Insights, Page Insights, Exploring the various IG content types, Setting a theme and flow on Instagram, and Generating Leads VIEW

 

Unit 3 [Book]  
Creating a Twitter account, Optimizing a page, Content types, Posting contents VIEW
Integrating a Personal brand on Twitter, Twitter Analytics & Ads, Post assistants and Automation for Twitter VIEW

 

Unit 4 YouTube Marketing [Book]  
YouTube Marketing, Creating a YouTube channel, Posting content VIEW
YouTube Analytics VIEW
Google Pages for YouTube Channels, Video Flow, Verify Channel, Webmaster Tool – Adding Asset VIEW
Search Engine Optimization Recent Trends and Challenges:  
Search Engine Optimization (SEO) Introduction, Understanding SEO, User Insights, Benefits and Challenges VIEW
Content Marketing VIEW
Traditional Media vs Social Media VIEW

Product Life cycle in Retailing

The retail life cycle theory holds that retail institutions experience the cycle of innovation, growth, maturity and decline, like goods and services that they sell, similar to that of the product life cycle. The market traits and strategies which are taken by retail institutions should differ in variable stages of retail life cycle. The theory of retail life cycle is first introduced by William Davidson W. R, Betas A. D and Bass S. J in 1976.

Different stages of retail life cycle

Innovation stage

In the innovation stage, in which the reformation and development of business methods promote the emergence of new retail formats, the operating characteristics of new formats have not been understood by both consumers and the industry, lowering market share. Moreover, because of the development cost of new formats, it is hard for retail companies, which apply the new methods, to make profit at this stage.

This theory holds that the innovation in retail institutions is realized through the reformation of business methods. The reformation of business methods is mainly realized by decreasing the cost of operation and the price of products or services. However, it may also be innovated through improvement of product mix, customer service, sales, store selection, store design or sales promotion, business hours, logistics system and other ways, some of which are usually combined and innovated. Sometimes the company which leads the new retail format may become the target of hit (Roth, V. J., & Klein, S. 1993). During the period, the emergence of new forms can also lead to the blow of competitors and retaliation. In this stage, it has little impact on the existing competitive structure for its low market share.

Growth stage

In the growth stage, Langlois, R., & Robertson, P. (1995) points out that the new business formats start to be accepted by consumers and traits of new formats are widely understood in the industry. As a result, the market share begins to ascend and copycats are also on the rise. The competition between companies that apply traditional methods and new methods gets more intense. At that time, companies who have reformed their operating activities firstly can increase the marker sales and the profitability.

At the meanwhile, the competition between companies of new and original retail formats begin to turn out white-hot. With the rapid growth of reformed companies, customers of companies without innovation intend to choose products and services of innovative companies. Therefore, the unreformed retail institutions begin to take various actions to reduce the loss of customers. In fact, many companies which use original retail formats meet challenges of new formats with the positive attitude and apply some new methods in the existing formats. The competition of different retail formats is unique and increase the vitality in the market.

Later in the stage, with the wide application of new formats, the competition of companies which accept new formats will emerge and augment. The competition of different retail formats does not take the main role in the market. In the competition of new formats, some companies lacking competence start considering to leave the market. The remaining companies are inclined to take actions like improvement of service standard, expanding the commodity portfolio and improvement of shop facilities. Despite the continuing growth of sales, the cost will surge as well. Apart from the direct cost, indirect cost will increase sharply including promotion cost and the expense incurred by the increasing size of the organization. The cost may be higher than the sales and companies will face the non-profit situation.

Maturity stage

In this stage, companies of new retail formats are incapable of taking more market share and expand the customers’ base. In this period, companies which won out in the growth stage are trying to maintain the market share. However, the profit margin begins to decline because the new retail formats could not make any company have edge on the others and companies have to decrease the price in order to defeat competitors. Therefore, how to decrease the cost is the main problem that each enterprise faces. In order to pursue the differential advantage in the period of competition, the enterprises compete to make the market more mature and stable. Characteristics of new formats have been gradually lost and new formats change to traditional formats. Thus it becomes an important opportunity for the emergency of another new format.

For chain businesses, in this stage, they need to consider to close inefficient shops and open new shops in good addresses as well as develop to diversified and compound retail organization (Turner, S. 2002). It should be pointed out that the retail format even in the maturity stage can be improved to make the company come back to the growth stage. According to the research of Sun, L., Kay, R., & Chew, M. (2009), department stores in the United States has been in the maturity stage after World War II. After that, the development of shopping centers gave department stores an opportunity to grow again because department stores were different at that time form before and they were reformed based on the model of shopping centers.

Decline stage

In decline stage, the new formats have become the traditional ones and with the change of consumers’ buying behavior and the appearance of newer formats, the market begins to shrink and traditional formats (original new formats) could not make any profit but may suffer great loss due to the decreasing sales. During this period, some companies decide to leave the market. As a result, the competition among the same retail formats is not serious but the competition of different formats will get increasingly intense.

Companies of the traditional format compete through the price, which makes their profit get less and less. Companies of the new format have edge on the others due to their advantages in other aspects like service, product quality and operation style. The situation of decline stage is similar to the innovation stage but in the term of traditional formats.

After this stage, the market will enter the next life cycle.

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