Moses Gomes, experienced sales and marketing consultant I Top 100 marketing strategists

E-commerce seems to be democratizing 'shelf space' as top brands do not dominate the e-commerce channel as much as they dominate brick-and-mortar retail the Bernstein report said. – Jack Neff, Advertising Age

Consumer behavior study helps to identify consumers and target audience, the study provides in – depth analysis on the following:

What compelled the Consumer to buys the product / Service?
Who compelled the Consumer to buys the product / Service?
Why a consumer buys the product / Service?
How the Consumer buys the product / Service?
Where the Consumer buys the product / Service?
When the Consumer buys the product / Service?

Fundamentally consumer behavior answers the 5 W’s and 1 H’s which any company or marketer needs to understand. This insights help to market the product / service. Within last few years mobile, internet and social media has changed the buying behavior of customers worldwide. People spend more time on internet, especially on social media websites, which influences their behavior towards that product / service.

91% of people have gone into a store because of an online experience. (Source: Marketing Land)
89% of consumers conduct their research using search engines. (Source: PR Newswire)
62% of consumers end up making a purchase in-store after researching it online. (Source: Marketing Land)
72% of consumers trust online reviews as much as personal recommendations. (Source: Search Engine Journal)
78% of consumers say that the posts made by companies on social media influence their purchases. (Source: Forbes)

Marketers believe that in 2014 on wards marketers will begin using big data to analyze consumer behavior, since it will get itself seamlessly integrate with people’s busy lives generating in – depth information about trends. With big data the marketers will get empowered which will help marketers and advertisers to exactly target specific clients / consumers at specific time, place and through specific device. Further with geo – location based targeting of advertisements and promotions the marketer can exactly geo – locate the type of device and map consumer behavior.

Pic ref: http://tommytoy.typepad.com/tommy-toy-pbt-consultin/2013/04/should-we-re-write-the-rules-of-market-research-part-i-.html

Marketing on the whole encompasses different strategies and techniques, here below I have tried to explain some of the terminologies which are commonly used:

Affiliate Marketing: In simple terms Affiliate Marketing focuses on “Commission Based” marketing techniques. This strategy has been used by most of the businesses, since they appoint distributor, sub – distributor and further marketing affiliates for increasing the sales. One of the most niche features of this type of marketing is, they focus wholly on “Performance Based”.
Referral Marketing: As the term itself highlights, “Referral Marketing” works on customer / client referrals. In this type of marketing customers are encouraged to pass on references for momentary benefits or recognitions. This is a pull based type of marketing technique where the customers are more often brand ambassadors. This is largely used in healthcare marketing, since they have strict laws on marketing. Also networking associations like BNI, IMC, FICCI, etc use this system to get leads for the members.
Loyalty Marketing: Loyalty marketing emphasis on marketing strategy for retaining clients through offers, vouchers and freebies. Only recently corporate have began using it to build larger customer base. This type of marketing strategy mostly works along with Referral Marketing, since both are inter – related.
Visual Marketing: One of the most innovative marketing techniques, Visual Marketing focuses on the use of images, experience and other aspects of senses. The most important aspect being to understand how images can be used to communicate an idea or concept. If images and designs are used appropriately, in conjunction with each other, aesthetically, this can produce best results. Visual marketing also forms an important element in all types of marketing whether events, advertising, social media, videos, posters, etc.
Viral Marketing: Viral marketing as the word itself explains, is any marketing strategy that includes all the components of marketing like web, events, mass mailers, advertisements or gift coupons which creates potentially exponential growth with visibility and effect. In olden days this was also regarded as word – of – mouth, but with the increase in internet penetration this activity is now geared along with Online Marketing.
Word – Of – Mouth Marketing: Word – Of – Mouth marketing differs from the naturally happening Word – Of – Mouth, as in WOMM the message is induced in the crowd or in the minds of customers. The communication or message is pushed using innovative creative’s. In last five to ten years, with the increase in internet penetration many companies have been using Facebook, YouTube, Twitter, etc to create buzz. WOMM usually works in conjunction with viral marketing by merging strategies with social networks having huge reach.
Relationship Marketing: Relationship marketing is a form of marketing which emphasis on developing customer relations, retention and satisfaction, keeping the goal, that in long tenure this will help to build robust foundation of customer base. Relationship marketing has been more often used in B2B sector and high net value products like servers, power generators, etc.
Multi – Level Marketing: Multi – Level – Marketing is a strategic form of marketing in which the sales team is compensated not only for sales they generate, but also on the sales of sales team they recruit. Usually, the recruited sales team is referred as “Downline”. The other terminology for this type of marketing is MLM, Pyramid scheme, Network marketing, Direct Marketing and Referral marketing. Mostly this is a strategic decision taken by the top management to increase sales using MLM.
Peripheral Marketing: Peripheral Marketing is a concept which essentially focuses on the secondary marketing and promotion strategies. This type of marketing focuses on promoting the service tangentially. Peripheral marketing encompasses In – Film placement, Sponsorships to events, Brand Ambassadors, etc.
Umbrella marketing: Umbrella Marketing or Branding is a concept where different products under a single company are co – branded by the same brand name. The whole idea behind this type of marketing is to leverage the product portfolio, using established brand name. Though this idea has been discouraged by lot of brand consultants, but few companies have successfully leveraged the concept, majorly Johnson & Johnson, Tata group, etc.
Sample marketing: Sample marketing is a concept wherein a product sample is shared or given to the consumer of the product or service, free of cost, so that he or she may try it before committing to the purchase. This concept usually works in automobile sector, where customers often opt for test drives.
POS Marketing: Point of sale marketing is mostly known as POP Advertising, it is done to attract retail shoppers at the point of a purchase. In other words, it lures shoppers into buying additional products or services at checkout point. This type of the marketing utilizes display to catch the shopper's attention; this is done through advertising, product placement or BTL activity.
Online marketing: Online marketing encompasses everything that is digital, right from mobile to internet. This type of marketing is usually bifurcated into Pay – Per – Click, Search Engine Optimization and Social Media Optimization. With the increase in internet penetration the number of companies opting for this type of marketing has grown to more than 50%. Another reason behind its exponential growth is that, online marketing is relatively inexpensive and can be easily tracked.
Up-sale marketing: Up – Sale Marketing or Upselling is usually a sales technique whereby a seller pitches the client to purchase better or more expensive upgrades or add-ons in an attempt to make more profit. This strategy usually involves marketing more profitable services which will result more profit for the clients and sellers as well. Companies usually use combination of Up – Selling and Cross – Selling strategies to increase profitability. This is often used in QSR restaurants, but in other businesses like in car sales this might be viewed negatively.
Direct marketing: Direct marketing is one of the most focused types of marketing and advertising that allows sellers to directly approach customers. This type of marketing includes right from cell phone text messaging to email from interactive consumer websites to database marketing, fliers, catalog distribution, promotional letters, etc. This form of marketing has been mostly used by sectors which have restrictions on other types of marketing.
Event marketing: Events is considered one of the most the strategic marketing and communication tools by all types of companies. The whole activity encompasses different strategies right from inviting customers to the events to themed activity, press conferences, music festival, concert, exhibitions, etc. Event marketing integrates different marketing elements like direct marketing, visual marketing, peripheral marketing, etc.
Cross marketing: Over the years this concept of marketing has evolved largely to target customers with different segment products or services. In this type of marketing form, customers of one product or service are targeted with promotion of another product. Typically telecom service provider tie – up with music festivals in India, which Idea has efficiently used for marketing its services.
Inbound Marketing: Inbound marketing strategy focuses on drawing customers to the company; this is usually referred as pull based marketing strategy. Most often Inbound Marketing is done using web based tools like blogs, podcasts, video, eBooks, SEO, social media marketing, and other forms of marketing which focus to bring customers closer to the brand.
Permission Marketing: Permission marketing is a term that has been popularized by Seth Godin. In this concept, marketers obtain permission from customers and probable interested customers before advancing to the next step in the purchasing process. Most marketers feel this is a more efficient since focus oriented, since the resources or offers are sent to only those customers who are interested.
Guerrilla marketing: Guerrilla marketing is considered as one of the most inexpensive yet effective marketing strategies. This involves unconventional means like graffiti, street art, flash mobs, stunts, etc. Guerrilla marketing is often used for local branding and marketing requirements. Since this is low – cost most often it is used by startups to increase profits rather than drive sales. Lately digital marketing has been considerable used for this type of marketing.