In-Depth Notes on Business Policy and Demand Marketing
Responding to Enquiries on Promotional and Marketing Activities
Understanding Business Policy
Definition: Business policy outlines the boundaries within which decisions can be made by lower-level management without frequent consultation with top management.
Policy Actors: Involves structured interactions among various actors (public and private) addressing public issues.
Key Concepts:
Actors: Include rationalists, technicians, incrementalists, and reformists.
Resources: What these actors use to represent their interests.
Institutions: The context that influences behavior and decision-making.
Features of Effective Business Policy
Specific: Clear and definite to facilitate implementation.
Clear: Avoid jargons and ensure unambiguous terms.
Reliable/Uniform: Consistency in application for ease of follow-through.
Appropriate: Aligns with current organizational goals.
Simple: Easily comprehensible by all staff.
Comprehensive: Wide in scope, covering necessary areas.
Flexible: Adaptable to routine situations, without frequent changes.
Stable: Provides a sense of continuity and confidence.
Comparing Policy and Strategy
Nature:
Policy: Routine activities and repetitive tasks.
Strategy: Unique decisions addressing new challenges.
Formulation Responsibilities:
Policy: Top management.
Strategy: Middle management.
Focus:
Policy: Daily operations.
Strategy: Strategic decisions and actions.
Business Policy Process
Key Steps:
A. Environment Scanning: Monitoring and analyzing internal/external information.
B. Policy Formulation: Developing plans to manage opportunities/threats and defining the corporate mission and objectives.
C. Policy Implementation: Putting policies into action.
D. Evaluation and Control: Monitoring performance against goals.
Demand Marketing Overview
Definition: Generating excitement about products to drive demand through awareness and interest.
Focus:
Build awareness and relevance.
Support validation and mitigate customer evaluation.
Approach: Integrates marketing with sales processes, emphasizing long-term relationships over mere branding.
Key Concepts: Difference between demand creation, demand generation, and lead generation.
Demand Creation vs. Generation vs. Lead Generation
Market Demand: Client's willingness and ability to buy a product, measured in:
Individual Demand: For single households/businesses.
Market Demand: For entire target markets.
General Demand: For the economy as a whole.
Demand Creation: Developing demand for new/unproven products, focusing on media and market presence.
Demand Generation: Engaging consumers, particularly in the awareness phase, while lead generation targets consideration and decision phases.
Pillars of Demand Generation
Understand Your Audience: Deep knowledge beyond basic demographics.
Get Your Audience Involved: Engage with prospects actively.
Deliver Added Value: Provide informative and educational content to influence decision-making.
Integrate Marketing Efforts: Ensure consistency across all marketing channels.
Measure Your Results through Data: Analyze performance metrics to gauge strategy effectiveness.
Strategies for Increasing Demand Generation
Create Multiple Buyer Personas: Tailor content and strategies for diverse audience segments.
Provide Personalized Content: Use existing content creatively to cater to each persona.
Partner with Influencers: Collaborate with trusted figures in the industry for broader reach.
Invest in Paid Ads: Use targeted advertising to effectively reach potential customers.
Total-Market Demand Forecasting Steps
Define the Market: Begin broadly to identify all potential users and understand demand drivers.
Dividing Demand into Components: Create consistent categories for analysis based on customer segments.
Forecasting Drivers of Demand: Use statistical methods and consider macroeconomic factors.
Conduct Sensitivity Analyses: Identify risks to forecast accuracy and potential changes in demand.