Heterogeneity - Whereas goods can be mass-produced and standardised, each experience of a service is different for customers as services cannot be precisely replicable. Hence, service providers must be highly-trained and skilled at serving with consistently high quality.

‍Perishability -The intangible nature of services also means they cannot be stored or reserved for future use; if appointments are missed, the opportunity cost translates directly to a loss in revenue. Whereas goods can be stored for future sales if there is leftover stock after the trading period.

‍Product Strategy - For both goods and services, a unique selling point is required, in the form of value-added extensions, that help the product stand out from competitors.

Price Strategy - For goods, pricing is simple: the price must cover the costs of production and generate profit, while keeping in line with the image of the business. Whereas for services, costs are determined from intangible aspects such as qualifications of service providers, industry rates, and time spent on the service.

‍Promotional Strategy - Services are intangible, so promoting a service as better than a competitor’s is difficult. Whereas the tangible benefits and attributes of goods are evident to customers and hence easier to communicate.

‍Place Strategy - Location of services must be customer-oriented, providing maximum convenience and ease of use. Whereas goods can be stored or produced in locations that maximise financial and productive efficiency.

Market Orientation - Outward-looking marketing approach that is focused on making products that can sell, rather than selling whatever products they want to make. Market orientation relies heavily on market research to identify, design, develop and supply products that meet the needs and wants of customers in a profitable way.
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Advantage
‍Lower Risk - With comprehensive market research to ensure products meet expectations and desires of the market, businesses can be confident that there will be a market demand for the product.

Disadvantage
‍Dynamic Environment - Due to the dynamic business environment and uncertainty of the future, there is no guarantee that the market demand for a product will sustain until after the business has begun sales to recoup the costs of research and production.

Product Orientation - Inward-looking marketing approach focused on developing high-quality products regardless of the wants and needs of the market. Product-oriented businesses focus on innovation to solve problems that have not yet been noticed, sometimes creating entire industries in the process.
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Advantage
‍First Mover Advantage - Businesses that successfully identify and meet the unpredictable wants and needs of customers will enjoy a significant advantage of leading an entire new industry, such as Netflix did with subscription-based on-demand entertainment, or Apple with smartphone technologies.

Disadvantage
‍High Risk - Businesses that pour heavy investments into research and development to identify and develop products that have not yet been tested in the market could well be risking their survival if the predicted market demand is not there when the product is launched. The costs of research and production may never be recouped.

Commercial Marketing - The use of marketing strategies to meet the needs and wants of customers in a profitable way; providing customers with what they want, when and where they want it. Commercial marketing seeks to influence purchasing decisions for financial gain.

Social Marketing - Planning and implementing programs designed to bring about social change using commercial marketing methods. Social marketing seeks to influence behaviour, usually for the good of society or the community.

Purpose - Commercial marketing aims to raise brand and product awareness in order to increase sales of goods and services to the target market. Social marketing aims to influence or persuade a desired change in social behaviour or attitudes, often without any monetary gain.

‍Main Adopters - Commercial marketing is mainly used by private sector and profit-seeking businesses, whereas social marketing is usually used by social enterprises and public sector organisations.

Market Size - Measured by sales revenue across the industry, the potential size of the market will detail the opportunities for growth for the business, and the potential size of the customer base the business will tap into.

‍Barriers to Entry - The obstacles that determine the number of suppliers in the market, such as cost of essential fixed assets, the concentration of market share within the industry, and connections within the industry. Barriers to entry will either deter or encourage new businesses from entering the market and challenging the larger players.

‍Market Growth Rate - The increase in the size of the market per period of time, measured by an increase in the value of stocks or the volume of sales in the market. Markets with a high growth rate present more opportunities for businesses to grow in proportion.

‍Seasonal and Cyclical Characteristics - Some markets are constrained by seasonal factors, such as tourism, winter apparel, and the sale of textbooks.

Induction Training - A type of on-the-job training primarily aimed at introducing new employees to the organisation, to help them settle in and acclimatise to their new environment quicker.

‍Mentoring - A type of on-the-job training involving a partnership between the new employee and a senior colleague who can help the new employee gain and develop specific skills and knowledge for the job.

Market Share - An organisation’s portion of the total value of sales revenue within a specific industry. Market share is regarded as one of the main determinants of business profitability and success.
Market Share = (firm’s sales revenue / industry sales revenue) x 100

Economies of Scale - The greater a firm’s market share, the larger their scale of operations. With large-scale productions, economies of scale are achieved in manufacturing, marketing, and other cost components. Since market share is a measure of sales, businesses with large market shares generally also have large cumulative sales. Combining lower unit costs of production with large sales would equate to large profits for the business.

‍Market Power - Influence over the market, such as high bargaining power in negotiations, talent attraction, and being able to administer prices, puts the business in a position of control over its own security and success.

‍Quality of Management - High market share is a consequence of competency in management, which translates to competency in other factors of business operations such as controlling costs, motivating employees to maximum productivity, evaluating business decisions and so on. Moreover, businesses with large market shares will be able to retain talented employees.

Changing Social Norms - Globalisation, and the integration of cultures throughout the world, has had incremental changes to the preferences of society. The fusion of cultures in people’s daily lives change their tastes; American broadcasting services may include Korean entertainment, shopping centers in China include European clothing labels, food delivery services in Singapore include American fast food chains.

‍Short Product Life Cycles - Marketing strategies at different stages of a product’s life cycle have different objectives: before sales launch there may be strong promotional strategies to increase brand awareness, whereas when sales begin to peak, extension strategies are deployed to prevent a decline in sales. In a highly competitive industry, failure to stay ahead of the product life cycle will result in a loss of market power as customers move on to brands that are keeping current.

Marketing Plan - Document outlining a firm’s marketing objectives and the marketing strategies to be used to achieve these objectives. A marketing plan is usually preceded by a marketing audit - a review of the current position of a firm’s marketing mix, analysing its strengths, weaknesses, opportunities and threats.

Marketing objectives.
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Suggested methods of market research to identify target markets.
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An assessment of the strengths and weaknesses of competitors in the market.
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Outline of the marketing mix.
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Details of the marketing budget.
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Outline of anticipated difficulties and strategies to deal with them.

Market Segment - A distinct group of customers with similar characteristics, wants or needs. Segmenting a market of potential customers according to their demographics or preferences makes it easier to personalise marketing campaigns to an individual, making marketing efforts more efficient.

Target Market - A specific market segment that the business prioritises in the design of its marketing mix towards. Aiming marketing efforts at specific market segments provides a focus to all marketing decisions and activities, and will make the promotion, pricing and distribution of the product easier and more cost effective.

Niche Marketing - A very concentrated form of marketing. Instead of marketing towards a broad range of potential customers, niche marketing involves targeting a specific and well-defined segment of the market.
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Advantages
‍Effective Marketing - Marketing mix can be highly specified towards the needs, wants and culture of the market. Products may become highly specialised and esoteric to give the brand a unique selling point over competitors who target more of the mass market, and market research and promotional efforts can be concentrated on a specific group of the population.

‍Less Competition - The small market will have less competition, offering the business security and greater market influence. The greater security of the business will allow it to take risks such as heavily investing into research and development, or undertaking product development or diversification strategies.

‍Brand Loyalty - A small market segment would mean a greater opportunity to develop intimate, valuable relationships with customers. By valuing customer feedback and providing quality service and support, a business will build a strong following of loyal customers.

Disadvantages
‍Market Size - There is little opportunity for growth in niche markets, limiting the potential for an increase in sales revenues. This means that the business will have to limit the growth of its operational scale, denying opportunities for cutting costs through economies of scale. It also means the business will have to use riskier growth strategies, such as product development or diversification, in order to increase its scale of operations.
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‍Low Barrier to Entry - The more successful a niche market becomes, the more competitors enter the market. The threat of larger multinational companies or conglomerates entering the market may endanger the survival of niche businesses.

Mass Marketing - Undifferentiated marketing that ignores the unique characteristics of different market segments. Businesses rely on increasing general brand awareness to increase sales, rather than immersing itself into specific market segments.
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Advantages
‍Market Size - The large market size offers the business endless opportunities for growth. The business can profit from a larger customer base to increase its scale of operations and reduce costs.

‍Reduced Cost - Not having to modify and adapt marketing strategies to every market segment will reduce time and money spent on the market planning phase, such as conducting market research on every segment.

Disadvantages
‍Diluted Market - A large market will equate to more competition for the business, who will struggle to gain or even maintain market share and market power. Businesses will also have to compete with niche businesses operating within subsets of the mass market.

Premium Products - High quality and high price.

‍Economy Products - Low quality but appropriate price.

‍Bargain Products - High quality but low price. The strategy is not sustainable but used as a short-term tactic to boost sales and penetrate the market.

‍Cowboy Products - Low quality but high price. Often scams that have little to no repeat purchases, limiting the lifespan of its products.

Unique Selling Point - Any aspect of a business, product or brand that distinguishes itself from competitors in the market. A strong USP offers a unique benefit that competitors cannot offer, which can be a major competitive advantage for businesses to attract customers and gain market share.

Differentiation - The act of distinguishing a business or its products from rivals in the industry. Differentiation is an opportunity for a business to gain a competitive advantage with value-added features to boost brand recognition, profitability, and ultimately market share.

Sales Forecasting - Quantitative management technique used to predict a firm’s level of sales over a given time period. It helps to identify potential problems and growth opportunities, so that management can prepare and make informed decisions.

Extrapolation - Identifying trends in past data and extending them to predict future sales, often by using a best-fit line that extends beyond the data.

‍Market Research - Identifying and forecasting the buying habits of consumers, such as an increase in environmental awareness or abstaining from the use of plastic products.

‍Time series analysis - Attempting to predict sales levels by identifying underlying trends from a sequence of actual sales figures recorded at regular intervals in the past. There are three main trends to look out for:
‍Seasonal Variations - Periodic fluctuations according to seasonal changes in weather.
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‍Cyclical Variations - Recurrent fluctuations in sales linked to the economic cycle of booms and slumps.

‍Random Variations - Unpredictable fluctuations in sales revenue caused by erratic and irregular factors that cannot be practically anticipated.

Benefits
‍Improved working capital and cash flow - Sales forecasts help the business identify potential fluctuations that could have severe implications to its liquidity position. A clear idea to expected sales revenues will enable managers to improve their cash flow position by improving stock control to avoid over- or under-stocking, ensuring necessary staff are employed to deal with scale of operations, and ensure credit and debt problems are dealt with before potential problems arise.

Helps to secure external sources of finance - Accurate and realistic sales forecasting will inevitably help the business with other forecasting-related decisions such as budgets, human resource planning and marketing strategies. A comprehensive plan of how the business will operate during the forecasted booms and slumps in sales will give financiers, shareholders and potential investors confidence in the capabilities of the business; enabling the business to gain favourable interest rates for financial loans, and attract investment.

Limitations
‍Inaccuracy of predictions - Past trends are never indicative of the future, and as with all forecasting, there is an element of uncertainty because of random events outside the control of the business, such as an economic recession or health crisis. The preparations of the business, such as an influx of human resources or a financial loan to deal with a forecasted rise in sales, may forsake the business and be the cause of its problems if the rise in sales never occurs.

Market Research - Activities designed to discover the opinions, beliefs and preferences of potential and existing customers. It helps the business identify and anticipate the wants and needs of customers, as they look for market trends and opportunities for growth. There are two main methods of conducting market research: primary research and secondary research.

Adaptation - Businesses that adapt the fastest to changing consumer trends will reap the greatest benefits with a first mover advantage. In highly competitive industries, it is imperative that businesses stay ahead of competition and identify and prepare for a potential change in trends whenever possible.

‍Marketing Mix - Assessing customer reactions and preferences will enable the business to better tailor its marketing mix to its target market segment. Knowledge like the most efficient form of promotion, ATL or BTL techniques, or whether a proposed USP will attract more customers, can help the business identify the strengths and weaknesses of its marketing mix.

Primary Research - Market research that involves gathering new data first-hand for a specific purpose. It is used to gather data and information directly from the target market segment to identify their buying patterns and anticipate changes in market trends.

Survey / Questionnaire - Document containing a series of questions used to collect data for a specific purpose. Surveys often use both closed and open-ended questions to gather quantitative and qualitative data respectively; open-ended questions allow the customer to express their opinions in depth. giving the researcher has a better understanding of the mindset of a customer.

‍Interviews - One-to-one discussions with customers or the target research group to investigate their personal circumstances and opinions. Interviews allow researchers to adapt questions based on the response of the interviewee, enabling the researcher to probe deeper into detail about customer preferences and desires.

‍Focus Groups - Forming small discussion groups to gain insight into the attitudes and behaviour of respondents. By using a focus group, detailed questions can be asked to strike an insightful discussion among participants that can reveal valuable information for the organisation.

‍Observations - Watching how people behave and respond in different situations, often using surveillance filming or in person. Organisations tend to observe customer reactions to a new marketing strategy to determine its effectiveness. It allows businesses to record customers’ actual behaviours, rather than what they say they would do.

Advantages
‍Precise - The organisation conducting primary research will be able to address specific issues as it is in control of the process, and can streamline the project to gather the exact information it desires.

‍Up-to-date - The business is aware of how relevant their research is in the current business environment and the situation of the business. Secondary data tends to have been researched out of date from current trends and may not be suited to the context of the business.

‍Proprietary Issues - Businesses who conduct their own primary research can keep their data undisclosed and out of reach from its competitors, who’ll be at a disadvantage if the business manages to identify something important.

Disadvantage
‍High Cost - Time, effort and financial investment are required for primary research; meaning there will be less for other more essential business operations.

Secondary Research - Collection of second-hand data and information that already exists. Second-hand data consists of internal data such as historical sales records, and external data such as academic journals, government publications, and market analyses done by other organisations.

Market Analysis - Reveals the characteristics and product perceptions of the target market segment, often used to measure how well a business is doing compared with its rivals. Businesses often gather sources from the publications of specialist market research firms, and annual reports of competitors.

‍Academic Journals - Periodical publications from educational and research institutions, uncovering data and information from industry experts and academics. The purpose is to distribute and share theoretical work and market research findings, rather than to gain profit, so businesses can purchase access to journals for a reasonable cost.

‍Media Articles - The general media can contain valuable data and information. Businesses can foresee potential opportunities for growth through the trends and viral articles on social media, television documentaries and news media.

Qualitative - Market research getting non-numerical answers and opinions from respondents in order to gain a more insightful understanding of the perceptions of the target research group. The two main ways of gathering qualitative research is through focus groups and interviews.
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Quantitative - Market research getting factual and measurable information rather than people’s opinions, using a more statistical approach to analysing data. The main way to gather quantitative data is through closed questions on surveys and questionnaires, where respondents choose from an array of answers.
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Qualitative research will disclose the driving and restraining forces behind the actions and behaviours of the target group, enabling the organisation to gain a greater understanding of how to meet their wants and needs. However, due to the depth of qualitative research, interpreting the findings and finding common trends from a large pool of respondents is very time-consuming. Quantitative research will not go as in-depth as qualitative research to understand the mindset and perceptions of the target group, but it is easier and quicker to collate and analyse a large number of responses in order to find clear trends.

Quota Sampling - An equal number of people from each target market segment is selected for market research. It enables the organisation to gather a conclusion that is more representative of the entire population, especially of minorities.

Random Sampling - An indiscriminate and chance selection of people for research, whereby everyone in the population has an equal chance of being selected.

Stratified Sampling - Selection of people from each target market segment proportional to the size of the segment. This method enables research to be more accurate in its representation of the population, as it accounts for diversity but also the significance of each segment.

Cluster Sampling - Random selection of people within several geographical areas, used to reduce time and effort necessary for research.

Snowballing - Research carried out with individuals, who then suggest other people for the interview, who repeat the cycle to increase the sample size exponentially. It enables the organisation to gather a large pool of responses easily, sacrificing control over diversity of respondents in doing so.

Convenience Sampling - Selecting people who are the easiest to reach, used to reduce time and effort necessary for research.

Non-Sampling Errors - Human error in market research, such as incorrectly analysing data gathered or making mistakes in recording of data. It also includes mistakes on the side of respondents, who may intentionally distort results with dishonest answers.

‍Sampling Errors - Mistakes made in the design of market research, such as a sample size or sampling method that does not attain results that represents the view of the target market segment, or bias in the research that intentionally skews results.

Research and Development Stage
‍Designing and testing prototypes to arrive at the finished version of a proposed product. The market reaction to the prototype, together with detailed market research, will be the markers to assess the potential success of the finished product, helping the business make an informed decision about whether to continue investing into the project.

The R&D stage is usually met with high costs with no revenue from the product, putting the business in a negative cash flow position.
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Launch Stage
‍The launch stage involves careful marketing planning, with usually a great emphasis on promotion to raise brand and product awareness among the target segment. Sales will be relatively low as the product has not gained traction in the market yet so awareness is low. Customers who buy products at launch are referred to as innovators, who are usually product reviewers and loyal customers of the brand.

The launch stage is usually met with high costs from the extensive marketing campaigns, but little revenue. The product will still be unprofitable, and the business will still be in a vulnerable cash flow position, meaning managers will aim to get the product onto the next stage as soon as possible.

Growth Stage
‍The growth stage sees sales revenue increasing as the product gains awareness within the market. The growth is usually due to the business using wider channels of distribution to get the product more accessible to the target market segments. Rising brand awareness from promotional campaigns during the launch stage will increase sales as well. Customers purchasing the product at this stage are known as early adopters.

Profits will begin to materialise with the increasing sales revenue and potential lower unit costs if the business is able to utilise economies of scale in production to meet the increasing demand. However, the cash flow position of the business will depend on its credit control. Businesses will strive to prolong this stage as long as possible, but will have to continue investing in extensive promotional campaigns to remain competitive.
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Maturity Stage
‍The maturity stage will see a slowing rise in sales revenue as sales reach its peak. The marketing mix of the business will focus on fostering brand loyalty and repeat purchases from target market segments, as well as market development strategies to increase the potential customer base of the business in an attempt to maintain sales and prolong the maturity stage before the product enters the decline stage.
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Decline Stage
‍The final stage of the product life cycle will see declining sales, as the product becomes obsolete and out-dated. The business will inevitably see a fall in profit, but the cash flow position of the business will depend on whether it decides to invest into extension strategies to revive interest in the product and prolong the maturity stage.

Pricing Strategies - To increase demand for a product, businesses could use price cuts to get rid of excess stocks and free storage space before the product becomes obsolete.

‍Redesigning - Without adding any additional features to improve functionality, the business could release new designs and limited editions of a current product.

‍New Markets - Market development strategies and broadening distribution channels will enable the business to reach a greater customer base to increase sales.

‍Brand Extension - Using an existing brand name, such as the iPhone or Galaxy, to launch a new or modified version of the product.

Question Marks / Problem Children - Products that operate in a high market growth sector, but have low market share. This suggests inferior marketing or product quality, as the market prefers alternative products from competitors. The business should analyse reasons for its low market share and develop strategies such as market penetration and greater promotional campaigns.

‍Stars - Products that operate in high growth markets and have high market share. Stars are successful products that generate high sales and profits for the business. However, high market growth will attract more competitors, so the business will have to continue investing into the product to maintain high market share.

‍Cash Cows - Products with high market share operating in a low-growth market. Low-growth markets tend to be mature, with high barriers of entry, such as the soft drink industry. Cash cows tend to generate high profits and a healthy cash flow for the business, but require some investment into extension strategies to prolong their high earning potential.

‍Dogs - Products with low market share operating in a low growth market. Dogs do not generate much cash or profits for the business, and businesses have to decide whether to risk potential losses or withdraw the product entirely.

Branding - A form of differentiation that involves creating a name, symbol or design that is identifiable with a product or business. Successful branding is a natural expansion of the vision, mission and culture of the business, in other words, branding is a reflection of the business’ identity.

Communication - Branding gives the business an opportunity to communicate its purpose and ideologies to customers, advertising the values and beliefs that customers will be supporting by choosing the business over competitors.

‍Recognition - Branding is how products get recognised as part of a business’ portfolio. The familiarity and assumed dependability of a recognisable brand will improve sales by attracting new customers.

‍Loyalty - A strongly established brand will build trust with customers, who will have confidence in the quality and consistency of a product or service from the brand. This will also increase the anticipation and performance of newly released products from a business.

Brand Awareness - Measures the extent to which potential customers or the general public recognises a product by its name. Products and services that maintain a high level of brand awareness are likely to generate more sales as customers prefer familiarity with a brand they can trust.
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Brand Development - The marketing process of improving the perception of quality, value and trust a customer has in the organisation and its products. Brand development is an ongoing process of continuous improvement to enhance customer satisfaction.

Brand Loyalty - When customers make repeat purchases of the same product or service, despite attempts of competitors to lure customers away.To encourage brand loyalty, businesses use loyalty schemes such as discounted prices or favourable treatment to reward devoted customers.

‍Brand Value - The premium customers are willing to pay for a brand name over and above the value of the product itself. It measures the extent to which customers will pay more for a reputable brand over a generic product without a recognisable brand during a buying decision.

Function - Packaging protects the product from damage during transportation and distribution.

‍Attraction - Attractive and attention-grabbing packaging piques the interest of customers to find out more about the product. The quality of packaging will be associated with the quality of the product.

‍Facilitates Purchase Decision - Packaging can contain product descriptions to enable customers to make a more informed purchase decision.

‍Differentiation - Packaging offers the business an opportunity to differentiate the product from competitors by advertising its brand or using a unique design.

Mark-up Pricing - Adding a percentage or predetermined amount of profit to the cost per unit of output to determine the selling price. This allows the business to determine a reasonable price for customers that will definitely cover the direct costs of the product to ensure gross profits are positive.
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Penetration Pricing - Setting a relatively low price to help establish a new product in the market in order to gain brand recognition and market share during the launch and growth stage of the product. The price stays low as long as the business is able to sustain a low profit margin, but it is usually raised before too long.
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Price Skimming - Charging a premium price to maximise profits. This is usually adopted by first-movers who have introduced new technologies after heavy investment into research and development. The high prices are meant to cover the costs of research and development, and the product tends to still sell due to the little competition first-movers face.

Psychological Pricing - Rounding down numbers such as from 10.00 to 9.99 to deceive customers into thinking prices are lower. This method has gained commonplace across all industries, but is unsuitable for businesses who trade in cash, where whole numbers will be more convenient.
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Loss Leader - Selling a product below its cost value in the hope of attracting customers to purchase additional products from the business. The aim is to receive the loss of a particular good through the sale of optional add-ons to the product.
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Price Discrimination - Occurs when the same product or service is marketed at different prices to different market segments. For example, services for children are generally cheaper than they are for adults.
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Price Leadership - A strategy used by a clear market leader, who is able to dictate the price of the market by rising or lowering its prices.

‍Predatory Pricing - Using below-cost pricing to undercut competitors in an attempt to sacrifice profit margins or even losses to gain a market advantage. Predatory pricing is used to force rivals who are unable to compete profitably out of the industry.

Above the Line Promotion - Any form of paid-for advertising that is largely non-targeted and has a wide reach, through independent mass media sources. Common platforms for ATL promotion include television, radio, magazines, and billboards.

Below the Line Promotion - Direct advertising activities, using non-mass media outlets, focused on a targeted segment of customers. Common methods for BTL promotion include direct mail, sales promotions, branding, point-of-sales promotion and targeted search engine marketing.

Direct mail - Reaching out to individual customers by sending them exclusive offers or promotional material through an email or packaged mail.

‍Sales promotions - Using short-term attractive initiatives to stimulate demand for a product and increase its sales.

‍Point of sales promotions - Promotion of a product at the place or location where the customer buys the product, such as the suggested bar in the shopping cart page of e-commerce websites or at the checkout counter of a store.

‍Publicity - Promoting a business and its products by gaining free media coverage. This includes hosting launch events, intentionally stirring controversy to gain social media coverage, and gifting products to celebrities for their personal use in hopes that they will post about it on social media.

‍Sponsorship - Providing financial funds and resources to support an event or another organisation in return for publicity and prime advertising space.

Personal Selling - Relying on sales representatives directly helping and persuading customers to make purchases. Sales representatives commonly use sales presentations, private meetings with clients, or door-to-door sales.

‍Direct Marketing - Advertising directly to individual customers, usually through mail, email, text or other means of personal communication.

‍Public Relations - Business activities aimed at establishing and protecting the desired image of the organisation through independent media coverage of the activity or event.

‍Sales Promotion - Offering short-term incentives designed to stimulate demand for a product or service.

‍Advertising - The practice of calling public attention to a product or service in order to develop awareness, positive perception and recognition.

The internet and social media have broadened the opportunities available to businesses to extend their promotional strategies.
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Social Media has granted cheaper forms of BTL promotion through media websites such as Google, YouTube, Instagram and Facebook. Advertisements on these platforms have a cheaper cost per head than traditional advertising space such as television and radio, and allow organisations to target their advertisements to specific demographics. Additionally, advertisers can monitor the performances of their advertisements, with social media platforms offering information such as number of views and number of interactions with the advertisement.
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Influencer Marketing on social media platforms offer businesses cheaper opportunities for promotional activities through sponsorships and publicity. Additionally, businesses can sponsor selected influencers whose audience matches the target market segment of the product; particularly beneficial for businesses operating in niche markets.
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Viral Marketing is similar to word-of-mouth marketing, except viral marketing is conducted through social media platforms. Businesses have the opportunity to make promotional material on social media go viral just by posting them on their own pages; major brands such as Nike and Apple have gathered millions of followers across social media platforms.

Guerrilla Marketing - Achieving conventional marketing goals with unconventional methods, focusing on creativity and imagination in promotional material. Guerrilla marketing often has a smaller budget than traditional methods of promotion, and has a heavy reliance on viral marketing and word-of-mouth.
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Advantages
‍Viral Marketing - Successful marketing tends to gain viral attention on social media platforms by stirring controversy. The snowball-like spread of the promotional material as more people share it will enable the business to gain a mass audience easily.

‍Lower Costs - As guerrilla marketing relies on word-of-mouth community spread, a smaller budget is required to increase distribution to a large audience.

Disadvantage
‍Unpredictable - Guerrilla marketing tends to be polarising, with the potential to be easily misunderstood by audiences. The possible backlash may cause irreparable damage to the image and reputation of the brand.

Channel of Distribution - The chain of businesses or intermediaries a product passes through to reach the consumer. Traditional distribution channels consist of manufacturers, wholesalers and retailers. However, the more intermediaries there are between manufacturers and the customer, the higher the price of the product as each intermediary adds a profit margin to their price.

Specialty Channels of Distribution - A direct way to distribute products directly to consumers without the use of intermediaries. Examples include e-commerce stores, vending machines, and telemarketing.
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Advantages
‍Price Advantage - The omission of intermediaries allows the business to control the price of the product sold to consumers, enabling them to use pricing strategies that make the most of not having to share its profits with intermediaries.

‍Independence - The business is not vulnerable to disruptions in sales due to external organisations as they are not dependent on any intermediary to complete a sale.

‍Control of Sales Process - The business will have full control over presentation, packaging, customer service and the overall quality of the purchasing experience.

Intermediaries - Agents or businesses that act as a middle person in the channel of distribution between the manufacturer and consumers of a product. The three main types of intermediaries include wholesalers, distributors and agents, and retailers.

Distributors - Independent and specialist businesses that trade in the products of a limited range of manufacturers, usually a singular manufacturer. The distributor acts as an intermediary between a manufacturer and prospective buyers of the products of the manufacturer, such as wholesalers, retailers, or the end consumer.
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Agents / Brokers - Negotiators who act on behalf of buyers and sellers of a product to arbitrate a deal. Agents/brokers are used to assist the business in finding clients, and to deal with and speed up negotiations so that the business can focus on more essential operations.
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Retailers - A business that sells products directly to consumers. They stock a range of well-known brands in their stores to attract customers to a common marketplace to purchase goods from different brands.

‍Wholesalers - Businesses that purchase large quantities of products from a manufacturer and then separate or break the bulk-purchases into smaller units for resale, mainly to retailers or direct to the consumer. A wholesaler primary operates as an intermediary between a product’s manufacturer and retailers that want to sell the product.

Advantages
‍Storage Costs - Wholesalers buy in-bulk from manufacturers, taking a large amount of stock off their hands and freeing up storage space for the manufacturers. This enables manufacturers to save on storage costs and profit from purchasing economies of scale from the bulk sales to wholesalers.

Focus - Businesses can divert their attention to production and operations if they manage to offload the majority of stocks to wholesalers immediately.

Disadvantages
‍No Control - Businesses lose control over the way their products are presented to consumers when they are sold by the wholesaler, who may present it in a way that damages the image and reputation of the business.

‍Extra Cost - The price of the product for consumers will increase with the addition of a level in the chain of distribution, putting the business in a competitive disadvantage on price.

The provision of services relies on the goodwill of all employees, and their ability to provide consistently high quality service to customers. It is important for service-oriented businesses to build good relationships and trust with its customers, who may either help promote the business or damage the reputation of the business through word-of-mouth.

The efficiency and convenience of the service provided by the business will have a significant impact on the customer’s experience, and determine whether customers will make repeat purchases and spread a positive word on the business.

Payment Methods - Businesses may offer more convenient methods of payment, such as credit or payment on the phone.

‍Waiting Time - There will be negative consequences if the business is unable to forecast and manage demands. The longer customers have to wait for a service, the less satisfied they will be.

‍Customer Service - The convenience of receiving help from the business for the use of their product, as well as the degree of attentiveness and politeness of staff towards customers when they have problems.

The tangible aspects of a service that indirectly communicates the quality of the service on offer, such as the interior design of the lobby and general aesthetic and cleanliness of the location. High-grade physical evidence is imperative for the impression of a professional and high-quality service.

Internal Methods of Entry
‍E-commerce - Worldwide access to the e-commerce platform of a business provides the opportunity to access international markets without investing into infrastructure in the foreign nation.

‍Direct Investment - Refers to the business setting up overseas production and/or distribution facilities.

‍Exporting - Selling products directly to a foreign buyer while still operating in its domestic country.
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External Methods of Entry
‍Joint Ventures - To gain entry into a foreign market, businesses can partner with foreign organisations in a joint venture, whereby they invest in a shared project, pooling their resources to form a separate legal entity. This enables the business to gain entry into the foreign market with the aid of a local organisation who understands the culture.

Strategic Alliances - Like a joint venture, businesses seeking entry into a foreign market can partner with foreign organisations in a strategic alliance, where they pool resources and invest in a shared project.

‍Franchising - Selling franchise licenses to foreign nationals to set up a franchise in their local country will enable the business to gain access into a foreign market without having to invest into infrastructure and with the cultural awareness of a local.

‍Mergers - Merging with a foreign business will grant both businesses access into each other’s markets.

‍Acquisitions - Purchasing a majority stake of a foreign company will enable the parent company direct access into its local market.

Increased Customer Base - As market development strategies go, the business will gain access to a larger customer base with entry into a new market. This promises the potential for greater sales and higher market share for the business, and could serve as an extension strategy for product life cycles.

‍Spread Risks - By operating in a diverse range of markets, the business lowers its reliance on any singular market for survival or prosperity. Therefore, the business will be less vulnerable to changes in consumer tastes or a recession in a certain market. Similarly, businesses who are impacted by seasonal or cyclical variations in market demand, they can even out sales by entering international markets with different or counter-cyclical variations.

‍Increase Brand Recognition - A greater customer base across the world will increase the international recognition of the brand, leading to improved brand loyalty, greater influence in the market, and increased sales revenue.

‍Economies of Scale - Expanding into a new market will increase the scale of operations of the organisation, who can benefit from reduced unit costs of production due to economies of scale.

Legal Issues - The business must be conscientious about adapting its operations and practices to a different legal system. Government trade restrictions, employee protection legislation, environmental legislation, competitive legislation are all potential pitfalls for lawsuits if businesses do not adapt.

‍Language and Cultural Differences - Management must be aware of how differences in language and culture will impact their marketing strategies, and the perception of their current product by the local market.

‍Infrastructure - The state of a country’s transportation and communications networks and technologies will have a significant impact on business operations. Poor internet access, costly transportation of exported or imported goods, and the availability of public transportation systems are conditions to consider.

Cultural Sensitivity is essential for success in international marketing. Marketers must not assume that people overseas behave in the same way that they are accustomed to, and marketing strategies must be adapted to individual cultures and ways of life. Business etiquette in one country may be very different from what is expected overseas. Therefore, recognising differences in cultures when entering the international market is imperative to avoid misunderstandings between the business and its customers.

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Cultural Exports, or the commercial transfer of ideas and values from one country to another, must be carefully managed and adapted to fit local cultures. American fast food, Japanese ramen, Bollywood, Kpop, are all cultural exports from their countries of origin and have spread across the world.
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In all cultural exports, marketers need to consider local preferences when formulating their marketing strategies. For example, McDonald’s in China has a more chicken-based menu, whereas McDonald’s in India offer more vegetarian options.

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Effective Communication is imperative for the promotion of the business, brand, or product to a new market. However, there is a risk of promotional messages getting ‘lost in translation’. Language barriers that may hinder communications between a business and a foreign market must be overcome in a professional manner; improper translation will make the business appear to be of low-quality and may damage its reputation.

Global Reach - Unlike physical stores, e-commerce breaks geographical barriers, allowing businesses to sell their products to customers around the world.

‍24/7 Accessibility - E-commerce is accessible at all times, and does not require employees on hand to monitor the store. The reduced costs of labour and convenience for customers to buy products whenever and wherever they would like will only help increase profits.

‍Access to Information - Customers can easily find out more information about a product or business online, and can compare similar products between competitors to make an informed choice of which to buy.

‍Consumer Reviews - Customers have been empowered by e-commerce, allowing them to post consumer reviews on the pages of the product within the e-commerce store. Marketers can use the feedback to gain an understanding of the public’s perception of the product, its weaknesses and strengths.

‍Barrier to Entry - Technology has significantly reduced the barriers to entry in the form of set-up costs of a physical location and staff.

Market Development - The global reach of e-commerce will remove geographical restrictions of business location to provide the business immediate access to international markets. The business will enjoy a larger potential customer base to increase sales revenue, potentially allowing the business to expand its operations and utilise economies of scale to lower unit costs of production and increase profitability.
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Overhead Costs - Without geographical restrictions, businesses can benefit from having a centralised location for storage and distribution to customers within a large geographical scope. This reduces overhead costs associated with having multiple physical locations for retail and storage, increasing the net profit margin and profitability of the business.
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Promotion Costs - Digital advertising is inexpensive compared to traditional above-the-line and below-the-line methods of promotion. Additionally, social media platforms and web browsers such as YouTube, Google, Instagram and Facebook, provide targeted ads that will be shared with a specified demographic or characteristic of users of the platform; the business can profit from a more effective promotional campaign aimed at only its target market segment.
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Direct Channel of Distribution - E-commerce enables manufacturers to cut out intermediaries in their channels of distribution as customers from around the globe will be able to use the e-commerce platform to purchase the products directly from its manufacturer. This eliminates any profit sharing with intermediaries, allowing product prices to be lowered and gaining the business a pricing advantage over businesses with multiple layers in their channel of distribution.
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Product Descriptions - Businesses can provide in-depth information about the product on its online stores, giving the business opportunities to emphasise differentiations that make their product better than competitors’.

‍Price Transparency - Customers will be able to compare prices of similar products between competitors easily on the internet. The price transparency will be a major advantage for businesses with good management who are able to cut costs so as to lower prices without sacrificing profitability.

Business to Business (B2B) - E-commerce catered for the needs of other businesses, such as corporate banking, suppliers of raw materials, and consultancy services. They offer raw materials, finished parts, services or consultation that other businesses need to operate, grow and profit.
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Business to Consumer (B2C) - E-commerce directly catered for the consumer of the product. B2C businesses have direct channels of distribution where the product is sold to end-consumers without any intermediaries.

‍Consumer to Consumer (C2C) - E-commerce platform, such as eBay and Amazon, that provides customers opportunities to trade with each other. C2C websites earn revenue by charging a commission fee to sellers.