Top 5 Marketing Principles - Free eBook in PDF Format

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Top 5 Marketing Principles  

Book Description - ISBN 971-1-32741-911-6 (39 Pages)
This free eBook describes the top five marketing principles that will help you to develop a marketing plan that meets the strategic goals of your organization. It will also help you define the most effective and efficient marketing campaigns to include in this plan.

Chapter 1 - RFM Segmentation
The more an organization knows about its customers the better able they are to market to them. The RFM segmentation methodology provides a score for each customer that relates to their ‘value’ to your business. RFM stands for: Recency, Frequency and Monetary. Successful organizations keep a database of their customer’s activities in terms of RMF and use this data to inform their marketing communications decisions and planning. Customers who score high on the scale are highly valuable, and your marketing spend should reflect this value.

Chapter 2 - Kapferer’s Brand Identity Prism
Careful positioning of your brand within the market place places a significant role in your organization’s success. All brands need an identity and Kapferer’s Brand Identity Prism helps you structure the development of the overall perception and image of your brand. The prism has six unique elements – Physique, Personality, Culture, Relationship, Reflection and Self-image.

Chapter 3 - Customer Lifetime Value
Customer lifetime value (CLV) is easy to calculate and offers valuable insight into your organization and its different market sectors. You can select a variety of different ways to segment your customers e.g. source, acquisition method, service level etc. When you are able to make a prediction of the lifespan worth of each new customer, this data will play a key role in how you decide to allocate marketing spend.

Chapter 4 - Net Promoter Score (NPS)
The marketing communications technique Net Promoter Score (NPS) allows an organization to make the ‘right’ impression on its customers to ensure success. The score you calculate using this metric allows you to build a greater understanding of how your customers feel about your business and your brand.

Chapter 5 - The 4S Web Marketing Mix
Marketing in the twenty first century has to include the impact Internet, social media and online shopping has on its products, services and market sectors. This requires incorporating the 4S Web Marketing Mix with traditional marketing communications activities to ensure success.

You will learn:
  • How to use RFM Segmentation to inform your marketing communications decisions and planning.
  • How to use Kapferer’s Brand Identity Prism to help you structure the development of the overall perception and image of your brand.
  • How Customer lifetime value offers valuable insight into the worth of each new customer.
  • How Net Promoter Score allows you to build a greater understanding of how your customers feel about your business and your brand.
  • How the 4S Web Marketing Mix can be incorporated with traditional marketing communications activities to leverage the power of the online marketplace.

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What is RFM Segmentation?

  • RFM segmentation gives you a score that you can assign to each customer in order to determine their value to your business.
  • RFM stands for: Recency, Frequency, and Monetary.
  • Recency is a measure of how recently a given customer made a purchase.
  • Frequency is a measure of how often a given customer has made a purchase.
  • Monetary is a measure of how much money a given customer has spent with you.
  • RFM segmentation is easy for many businesses to implement thanks to the availability of the required data.


What is Kapferer’s Brand Identity Prism?

  • Kapferer’s Brand Identity Prism contains six unique elements that make up the overall perception and image of your brand.
  • The six elements are: Physique, Personality, Culture, Relationship, Reflection, and Self-image.
  • Physique refers to the common design elements that allow a customer to quickly separate your brand from the rest of the market.
  • It is common in the advertising world for brands to develop a personality and then maintain that personality over long periods of time.
  • Some of the key elements of your brand may be deeply rooted in local culture.
  • Building relationships with your customers is a powerful way to build a lasting brand name.
  • A brand should reflect the personality and identity of the target market.
  • The image that the brand has in the world has an impact on the self-image of the buyers themselves.


What is Customer Lifetime Value?

  • The only way to know how much you can afford to spend on marketing is to know how much money you are going to make from the customers you gain.
  • Customer lifetime value is how much each new customers is going to be worth over the entire lifespan of their relationship with your business.
  • The information required to calculate accurate customer lifetime value is the averages of: order value, frequency of purchase and the lifespan of the relationship.
  • You could then go on to incorporate profit margin numbers to determine how much profit is generated by each new customer.
  • Used in conjunction with customer segmentation, customer lifetime value enables you to see which marketing channels are the most profitable.


What is Net Promoter Score?

  • Net Promoter Score is a relatively new metric that has quickly been adopted across the business world.
  • Many of the world’s biggest companies integrate this method into their relationship evaluation process.
  • The entire metric is based around the question ‘How likely is it that you would recommend our product to a friend?’
  • Respondents are asked to select a number on a scale of 1 to 10, and make an optional comment.
  • Anyone who responds with a score of nine or ten is placed in the ‘promoter’ category.
  • Anyone who responds with a score of seven or eight is placed into the ‘passive’ category.
  • Anyone who responds with a score of six or lower is placed into the ‘detractor’ category.
  • Simple math enables a Net Promotor Score to be calculated with 100 being the best possible score and –100 being the worst possible score.
  • Net Promoter Score has quickly become a popular metric to measure customer satisfaction because it is both informative and easy to use.

What is the 4S Web Marketing Mix?

  • The 4s web marketing mix provides a high level model to help you with your online marketing plans.
  • The 4S stand for: Scope, Site, Synergy and System.
  • The Scope of your web marketing mix is the overall strategy that you have for this part of your operation.
  • You will need a strong website at the heart of your web marketing efforts, although it could be a third party platform like Amazon or eBay.
  • There needs to be synergy between your offline and online marketing efforts.
  • Make sure that your IT system as a whole is up-to-date and up to the demands that are going to be placed on it by your marketing operation.


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