This marketing plan focuses on Jalna Company's objective of maximizing profit margin and identifying the target market for their premium creamy vanilla yoghurt. The plan includes customer segmentation, branding strategy, marketing objectives, and more.
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Running head: MARKETING MANAGEMENT Marketing plan for Jalna Company Name of the student: Name of the university: Author note:
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1 MARKETING MANAGEMENT Executive summary Identification of the objective of maximizing the profit margin is appropriate in terms of accumulating greater share of the dairy market of Australia. The next step is conducting the analysis of marketing mix for the premium creamy vanilla yoghurt. This analysis would be effective in terms of identifying the target market. After identifying health seekers and flavour cravers as the targets, laboratory tests of the yoghurts proves beneficial. This is in terms of assessing whether the manufactured product is appropriate for the health needs of the customers. Upon getting positive results, the personnel of Jalna Company needs to make plans regarding advertising and promoting the benefits of yoghurt to the customers. Using social media for advertising would help the personnel in enhancing the trafficking of the audience towards the brand image. Installing privacy cookies and policies in the profile would reflect conscious approach of the personnel towards the specific tastes and preferences of the customers. Conducting market research on bringing innovation within the yoghurt would help Jalna Dairy Foods Ltd to stand out from the contemporary brands.
2 MARKETING MANAGEMENT Table of contents Introduction................................................................................................................................3 Segmentation and branding strategy..........................................................................................3 Customer segmentation..........................................................................................................3 Primary and secondary target market.........................................................................................5 Customer persona...................................................................................................................9 Positioning and branding strategy........................................................................................10 Brand strategy......................................................................................................................11 Marketing objectives............................................................................................................14 Marketing program...................................................................................................................15 Product development............................................................................................................15 Distribution plan...................................................................................................................17 Integrated marketing communication plan...........................................................................17 Schedule, forecast and control.................................................................................................18 Marketing schedule and budget...........................................................................................18 Forecasting...........................................................................................................................18 Market metrics and contingency..........................................................................................19 Conclusion................................................................................................................................20 Reference list and Bibliography...............................................................................................21 Appendices...............................................................................................................................24
3 MARKETING MANAGEMENT
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4 MARKETING MANAGEMENT Introduction Management is necessary in terms of ensuring the efficient execution of the business activities. Typical components of management are regulation and control, which helps in making estimations for the time when the identified goals and objectives would be fulfilled. AlltheseaspectsprovetrueforJalna,anAustralianbasedyoghurtCompany.This assignment attempts to prepare a one year marketing plan for the company. Focus of the marketing plan would be on the development of marketing objectives, positioning, branding, scheduling and forecasting. Segmentation and branding strategy Customer segmentation Geographical segmentationwould be appropriate in terms of assessing the freshness and quality of the curd until it reaches to the customers. Along with this, demographic segmentation would help the personnel in delivering the services to the close proximity to the customers.Demographicsegmentationwould enhancethe awareness of the company personnel in terms of the approaches of the customers towards the produced curds. This wouldincludethebehaviouralapproachofthecustomers,enablingsupporttowards improving the standards and quality of the curds. VariableCustomer group1 (millenials) Customer group2 (baby boomers) Customer group 3 (Health seekers) Customer group 4 (Anti- healthy devotees) Customer group5 (resistance towards desserts) Custome r group 6 (Limited intakeof desserts) Geographic and demographi c variables Transportatio nfacilities, durabilityof thepremium Maintainin gthe qualityand originality Freshness of the curd Consistenc yinthe creaminess Conscious towards gainingfat through Beliefs thata little amount of
5 MARKETING MANAGEMENT vanillacream yoghurt of the curd tillit reachesthe curd of the curddessertsdessertis alright Group size/people 15%ofthe population Children and teenagers College students Children and younger adults GirlsSchool and college students LifestyleControlling further degradation in thehealth issues Studying, playing Studying, tech savvy Playing, studying, surfing internet Studying, conscious about maintaining healthand hygiene Takes interest in trying new things BehaviouralSeekfoods, whichare enrichedin calcium, fibre, vitaminsand minerals Enjoys desserts Emotional , experience frequent mood swings Lacks control overthe emotions Prefers cleanlinessin the everything Studying, gossiping, surfing netand trying new things Usage rateLowHighMediumHighMediumHigh Loyalty status MediumHighMediumHighHighHigh Price sensitivity HighLowMediumHighHighMedium PreferredShoppingReliesonGroceryAnyOnlineOnline
6 MARKETING MANAGEMENT shopmallsparentsfor their needs shopsand shopping malls lucrative shopping site shoppingshopping Typical brands OikosStornyfieldYoplaitChobani toppled DannonVoskos Honey Media consumption Socialmedia, newspaper articles Social media Social media ResearchesSocial mediaSocial media Sought value proposition Fat free milk forpreparing the yoghurt Inclusion of high protein ingredients inthe yoghurt Regulated amount of vanilla Valuefor money Consciousnes stowards calorieintake and nutritious value Catering to increased levelsof energyas they need towork hard Table 1: Customer segment template Primary and secondary target market Fromtheidentifiedconsumergroups,healthconsciousgroupandthegroup passionate towards dessertsare selected as primary and secondary target market respectively. Health conscious group Consumer journey map Customer expectations High class quality of the yoghurt Freshness
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7 MARKETING MANAGEMENT Presence of fat free milk Proper transmission of the information related to the premium vanilla creamy yoghurt Lower levels of sugar content Customer experience journey Buying process For the first 20-60 days, the health conscious customers would conduct research regarding the premium creamy vanilla yoghurt. The focus of this research would be on nutritional value of the yoghurt; calorie intake and the essential ingredients in the yoghurt. The next step would involve comparison of the yoghurt with that of the other brands providing quality and healthy yoghurt. Comparison between the brands would help the health conscious customer group to take decisions regarding purchasing the premium creamy vanilla yoghurt. Herein lays the effectiveness of the online reviews, blogs and word of mouth of the customers, who have already purchased the yoghurt. The next few days would be spent by the customers in implementing the undertaking the decisions regarding the purchase of the yoghurt.Finally,thesupportformakingthepurchaseswouldberenewedwiththe introduction of healthy ingredients in the yoghurt- fat free milk, regulated amount of sugar content among others. Customer goals Reduce weight Adopt healthy and balanced diet Maintaining healthy lifestyle Emotional response
8 MARKETING MANAGEMENT Online reviews and blogs generates stimulus within the customers regarding purchase of the creamy yoghurt. Positive comments regarding the purchasing experience creates an urge within the customers to buy the yoghurt and try it once. On the other hand, negative comments generates thoughts of deceives and betrayals in the name of serving healthy desserts. Ideas to improve Jalna Company needs to adopt proper advertising strategies for transmitting the correct information to the customers. Putting the pictures along with the benefits of the yoghurt on the advertisements would be beneficial in catering to the needs, demands and requirements of the health conscious group. Along with this, proper marketing channels need to be identified for reaching to a large number of customers. Customers passionate towards desserts Consumer journey map Customer goals To try new desserts, which comes in the market To enjoy every spoon of cream in the yoghurt To add spice in the appetite Customer experience journey Buying process This group would spent the first few days in researching the new desserts, which have been launched in the market. This market research would help the group to gain an insight into the benefits of the yoghurts launched by different brands. This comparison, further, would be assistance in terms of undertaking decisions regarding trying the yoghurt. The next
9 MARKETING MANAGEMENT step would be implementation the decisions taken for purchasing the yoghurt. If the company personnel make plans for making the yoghurt tastier, the decision-making process of this customer group would be enhanced. Customer expectations Creamy lather Adequate proportion of vanilla and milk Perfect balance in application of the ingredients Customer thoughts Positive response of the customers, who already tried the yoghurt would generate cravings within this customer group regarding trying premium creamy vanilla yoghurt. Negative responses from the online reviews would compel the customers to switch over brands. These negative responses would adversely affect the decision-making process of the customers. Ideas to improve As this customer group are sensitive towards the desserts, which are launched in the market, Jalna Company needs to take conscious approach in terms of advertisements. Consideration of the standards and protocols of Consumer Protection Act would enable the personnel to safeguard the personal sentiments of such consumer groups.
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10 MARKETING MANAGEMENT Customer persona Age: 25 Gender: Female Family: Married Income: Moderate Character: Healthy dieter Personality:Healthy,Moderately confident, Moderately stressful, High experience on consuming healthy foods Biography:Concerned about maintaining healthy body, prefers yoghurt, as it strengthens the immune system and helps in losing weight, performs exercise for achieving positive results; conducts research before purchasing foods Motivational factors:Incentives, healthy foods, exercise, indulging in social activities Brands and influencers: Oikos, Youplait, Chobani Preferred channels: Traditional advertisements, social media, billboard, celebrity endorsements “You appearWhat you Eat” Goals: Controlling weight Acquiring healthy lifestyle Frustrations: Notfindingproperinformationabout healthy foods Depression on eating too much junk food Increasing weight
11 MARKETING MANAGEMENT Positioning and branding strategy Position map for Jalna Company Figure: Position mapping for Jalna Company (Source: created by the author) The above figure represents the position mapping for Jalna Company based on the brand awareness. Brands like Devondale, Murray, Goulburn, Youplait, Lion Pty Ltd, Fonterra and Groupe prove intense competition to Jalna. All these brands accumulate a greater share in the Australian dairy market. In terms of brand shares in yoghurt and sour foods, Jalna Dairy Foods Ltd encountered an increase of 11.1%. The company tops the list of the Yoghurt and sour milk products in Australia per percentage share of retail value RSP 2017 (refer to appendix 1). Health seekers sought for the popular brands like Devondale, Murray, Goulburn, Youplait for getting quality yoghurts, which are prepared from fat free milks. Product lovers try out brands like Lion Pty Ltd, Fonterra and Groupe, as they find fusion with the desserts. Yoplait Stonyfield Danon JalnaDairyFoodsLtd Dairy Foods Ltd LionPty Ltd Fonterra Groupe Lactalis Devondale Murray Goulburn' H e al th se e 'Pro duct love rs' 'Antihealthy devotees' 'Flavor cravers'
12 MARKETING MANAGEMENT Anti-health devotees are satisfied even with high sucrose content within the desserts, provided by brands like Danone. These brands are less known, which is why they have been placed below the access. Flavor cravers come to brands like Jalna Dairy Foods ltd, as they intend to try out the different flavoured yoghurts. Brand strategy ProductDecline IntroductionGrowthMatuity Time Strategies would be central for Jalna Dairy Foods Ltd in terms of systematizing the business activities. This can be explained with the help of product life cycle. Developing strategies regarding the sale of premium creamy vanilla yoghurt would be theintroductory step towards improving the business scenario. Within this, offering certifications for quality, and warranties would reflectgrowthin the involvement of the health seekers customers group. Launching different models for the creamy vanilla yoghurt would act as an innovative means for luring the health conscious children and the young adults. This would diversity in the yogurt. Eliminating the weaker and defective yoghurts in the product line would help in averting the phase of decline. Plansfor increasing the sale revenueof premiumcreamy Certifications for quality, and warrantiesLaunchingdifferent models- diversity Eliminatingdefectiveyoghurt cups
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13 MARKETING MANAGEMENT Price IntroductionGrowthMaturityDecline Time Introducingpremium pricing methods would attract large number of customers especially the health seekers. Indulging in alliance with the members of the trade union would assist Jalna Dairy Foods Ltd to deal with the instances of high exchange rates, tax tariffs, inflations among others. This would lead tofinancial growth and development. A maturedstepwouldbetocomparethepricesoftheyoghurtsmanufacturedbythe contemporary brands. Charging extra prices for packaging of yoghurts would decline the number of customers. Distribution IntroductionGrowthMaturityDecline Premiumpricing for creamy vanilla yoghurt Alliancewith the trade union membersto assessthe feasibilityto penetrate foreign markets Comparetheprices with the competitors Charging extra packaging price Effective transportation facilities Intensive tracking of the distribution logistics Researchingabout addinginnovationin thedistribution facilitiesEliminatingthe unprofitable sources
14 MARKETING MANAGEMENT Introducing flexible transport facilities would cater to the quality, freshness of the creamy vanilla yoghurt. Tracking the distribution of the yoghurt would help in ensuring that the orders reach to the proper place. This would generate trust, dependence and loyalty within the customers regarding the services of Jalna Dairy Foods Ltd. Along with this, this tracking would reduce the illegal methods while transporting the orders. This would reflect growth and development of the business. Research and development within the transport facilities would be effective in terms of reaching the orders to the customers within short time would be a matured step. Here, focusing on the quality of the yoghurt would be crucial. This research would bring to the forefront the unprofitable sources, which might add negativity into the business. This approach would avert the declining phases. Communications IntroductionGrowthMaturityDecline Social media would rapidly increase the business of Jalna Dairy Foods Ltd. This would be an effective source for generating the awareness among the fitness freaks about the benefits of creamy vanilla yoghurt. Targeting the mass markets would be an approach Create awareness about thebenefitsof creamyvanilla yoghurt in social media Targetingthemass markets of creating awareness regarding thehealthbenefits ofthecreamy vanilla yoghurt Making the customers awareofthe differences,providing opportunitiesfor switching Reducetheminimal levelneededfor retainingthe customers, having high loyalty
15 MARKETING MANAGEMENT towards achieving expansion in the business. Projecting the brand differences would be a matured step towards preparing the way for switching. Reducing the minimal level would avert the declines and would help in retaining the customers having high loyalty. Marketing objectives Developing aims and objectives would help Jalna Dairy Foods Ltd to improve the focus on the business activities. The following objectives would be fruitful: To examine the communication channels and test its appropriateness in terms of specific needs, demands and requirements of the customer To increase the market share by focusing on the market consisting of mass health seekers To maximize profit by overpowering the shares of contemporary brands To reduce the expenditure for boosting the stock prices of milk and other dairy products The following is the metrics measurement for the first and the last objective. Objective 1: To reduce the expenditure for boosting the stock prices of milk and other dairy products Table 3: Australia dairy market value: $ million, 2013–17
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16 MARKETING MANAGEMENT According to the above figure, Australian dairy market value increased by 3% and the numericalvaluewasapproximately8000milliondollars.Thisfinancialstabilityis prospective for brands like Jalna Dairy Foods Ltd. In this sense, the objective of reducing the expenditure is appropriate. This is because focusing on the mass market of health seekers would result in high involvement for the services of providing products like premium creamy vanilla yoghurt. This would boost up the sales revenue, maximizing the profit margin. This increase would reflect the measurability and achievability of the objective. Voluminous sale of the yoghurt makes the objective a realistic one. Strategic approach towards the objective would help in fulfilling it within one year. Objective 2:To examine the communication channels and test its appropriateness in terms of specific needs, demands and requirements of the customer Value would be added to the business of Jalna Dairy Foods Ltd is the newly launched premium creamy vanilla yoghurt is advertised before the customers. Herein lays the need for adopting appropriate communication channels. Social networking sites would be an effective source transmitting the information about the yoghurt. Uploading the specific details of the yoghurt along with the image would help the company personnel to increase the trafficking of the customers towards the brand image. This would increase the sales volume of the company, enabling it to accumulate greater market share. Making plans for securing the private opinions of the customers through privacy cookies and policies would make the objective achievable within the time span of 1 year. Marketing program Product development Development of premium creamy vanilla yoghurt can be understood through the Product Life Cycle. Within this, the seven stages of product development can be included. Strategic approach towards development of the yoghurt would make the customers about its
17 MARKETING MANAGEMENT arrival in the market. Generating innovative ideas about commercializing the yoghurt would be the slow and gradual development towards growth. Screening the benefits of the yoghurt through presentations would be effective in terms of evaluating the different criteria used for standing out from the contemporary brands. This presentation would act as an analysis for the business dynamics of the Jalna Dairy Foods Ltd. Figure: Seven stages of premium creamy vanilla yoghurt (Source: created by the author) Moreover, this analysis would lead to the growth and development of dairy business in the company. This would develop unique value proposition for which the customers would try the yoghurt. The next step would be to test the quality, taste and application of the ingredients in the yoghurt before final launching to the market. Getting positive results in the test would enable the company to launch the yoghurt for the customers, especially for health seekers and flavour cravers. Pricing
18 MARKETING MANAGEMENT Pricing is one of an effective means for affecting the purchase decision of the customers. This is true even for the case of marketing plan of Jalna Dairy Foods Ltd regarding the price of premium creamy vanilla yoghurt. The pricing of the yoghurt can be understood through pricing architecture model. The objective of maximizing the profit share aligns with the CAC method, which is the total number of customers reached during a specific time. Therefore, the quoted price for the yoghurt would be the addition of CAC and profit margin earned. In numerical value, it would be approximately 3.50$(refer to the attached excel sheet. Adopting everyday low pricecan increase the number of customers, enhancing the brand image. Distribution plan Distributing the tasks of advertising the yoghurt would be beneficial in terms of achieving positive results. Distributing the channels would mitigate the channel conflicts. Here, privacy cookies and policies are crucial for safeguarding the information, which is being transmitted from the sender to the receiver. Tracking the transmission process would help in assessing the efficiency of the distribution of information. Along with this, demand for yoghurt needs to be kept in mind for constructing plans for distribution. Awareness regarding the peak and lean seasons along with the mass market would improve the logistic supply chain network for Jalna Dairy Foods Ltd. Integrated marketing communication plan Advertising for the premium creamy vanilla yoghurt needs to be done with strategic planning. Choosing the newspapers, radio and television for advertising would reflect traditional means of advertising. However, as the present generation is tech savvy, social media would be appropriate for promotion of the yoghurt to large number of customers. Taking sponsors for the promotional advertisements would generate high involvement of the health seekers towards the yoghurt. Allience would established with the personnel of social
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19 MARKETING MANAGEMENT networkingsites,whowouldbeentrustedwiththeresponsibilityoftransmittingthe information related to the premium creamy vanilla yoghurt. Schedule, forecast and control Marketing schedule and budget (refer to the attached excel) Forecasting As per the data of 2017, the volume of Australian dairy market encountered an increase of 1.2%. Numerically, the volume reached 2770.1 kilograms. It is forecasted that in the year 2022, the sales of the dairy market would a market value of $9744.5 million. This would be an increase of 7.7%. The yoghurt and sour milk grew to $1.9 million, which is an increase of 3%. However, the market value of the dairy market possesses the capability, which extends the value upto $1852.8 million. For this, the personnel of Jalna Company need to expose conscious approach towards the seasonal offerings. Flavored yoghurt is popular among children as well as the younger adults. Older people usually avoid such flavors, as they intend to savor the traditional taste of yoghurt. Consciousness towards the specific preferences of the customers would boost the sales revenue and profit margin. In the winter season, chocolates are available in large quantities. This can add to the complexities of the vanilla market. Therefore seasonal preferences counts within the plans for fulfilling the needs. Revisions in the recruitment and selection policies, budgets and other plans would be crucial for achieving the benchmark revenue level. However, tax tariffs and inadequate availability of raw materials might act as obstacle for the Jalna Company in catering to the specific tastes and preferences of the customers. For this, budget is crucial. ActivitiesAmount ($) Recruitment and selection1000 Acquiring the raw materials (milk, vanilla, dry2000
20 MARKETING MANAGEMENT fruits) Meetings for logistic activities3000 Laboratory tests1000 Advertising and promotion2000 Total9000 Table: Budget for the activities related to seasonal offerings (Source: Created by the author) Market metrics and contingency ActivitiesMetricsRecommendations Public relationsHigh involvement of the health seekers Gaining large number of foreign clients If the desired action is not achieved, then alliance needs to be developed with the statutory bodies AdvertisingTrafficking of large number of audiences Adopt social media for reaching to large number of audiences MarketingBudgets, plans, objectives Adopting the means of survey and feedback would help the personnel to gain insight into the customer approaches DataUsing software for recording the data Privacy cookies would be essential in terms of maintaining the security and
21 MARKETING MANAGEMENT privacy of the company data. Brochure printingDistributing the brochures to the foreign clients Reducing the selling price of the brochures Sales forceUpgraded performance of the staffs towards increasing the sales of the yoghurt Assigning practical examinations to the staffs for assessing their capability on allocated tasks and responsibilities TrainingFulfilment of the identified goals and objectives Hiring foreign experts for delivering training to the staffs Table: Marketing metrics for Jalna Company’s premium creamy vanilla yoghurt (Source: created by the author) Conclusion Jalna Dairy Food Ltd holds 23% share in the dairy market of Australia. Premium creamy vanilla yoghurt is one of the innovations planned for fulfilling the appetite needs of the health seekers and the flavour cravers. The objective of maximizing the profit share is appropriate in terms of focusing on the mass market. For this, planning would be effective in terms of commercializing the yoghurt in the target market.
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22 MARKETING MANAGEMENT Reference list and Bibliography Andaleeb, S.S., 2016. Services Marketing. InStrategic Marketing Management in Asia: Case Studies and Lessons across Industries(pp. 351-382). Emerald Group Publishing Limited. Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014.Principles of marketing. Pearson Australia. Baker, M.J., 2014.Marketing strategy and management. Macmillan International Higher Education. Bowie,D.,Buttle,F.,Brookes,M.andMariussen,A.,2016.Hospitalitymarketing. Routledge. Chernev, A., 2018.Strategic marketing management. Cerebellum Press. Chopra, K.N., 2017. Analysis of the Mathematical Modeling and Simulation of Advanced Marketing in Commerce.Journal of Internet Banking and Commerce,22(3), pp.1-9. Da Silva, E.C. and Mazzon, J.A., 2016. Developing social marketing plan for health promotion.International Journal of Public Administration,39(8), pp.577-586. Eneremadu,K.E.,Chikezie,I.andOko,E.E.,2016.INNOVATIVESTRATEGIC MARKETINGPROCESS:THELINKBETWEENMISSIONSTATEMENTAND ORGANIZATION PERFORMANCE.Journal of Teacher Perspective,11(1). Fine,S.H.,2017.ProductManagementinSocialMarketing.InMarketingthePublic Sector(pp. 81-95). Routledge.
23 MARKETING MANAGEMENT Gagnon, E., 2016. The Marketer’s Action Plan (MAP): Six Steps to Developing Effective Marketing Plans in B2B Marketing Programs.International Management Review,12(2), p.56. Hamper, R.J., 2014.The Ultimate Guide to Strategic Marketing: Real World Methods for Developing Successful, Long-term Marketing Plans. McGraw-Hill Education. Holliman,G.andRowley,J.,2014.Businesstobusinessdigitalcontentmarketing: marketers’ perceptions of best practice.Journal of research in interactive marketing,8(4), pp.269-293. Jalna.com.au(2018).Alittlepotofpurity.Availableat: http://www.jalna.com.au/products/premium-creamy-yoghurt.html[Accessed on 28th August 2018] Lovelock, C. and Patterson, P., 2015.Services marketing. Pearson Australia. McDonald, M. and Wilson, H., 2016.Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons. McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. InThe marketing book(pp. 108-142). Routledge. Nijssen, E.J., 2017.Entrepreneurial marketing: an effectual approach. Routledge. Opresnik, M.O., 2018, July. Effective Social Media Marketing Planning–How to Develop a DigitalMarketingPlan.InInternationalConferenceonSocialComputingandSocial Media(pp. 333-341). Springer, Cham. Paley,N.,2017.HowtoDevelopaStrategicMarketingPlan:Astep-by-stepguide. Routledge.
24 MARKETING MANAGEMENT Perreault,W.D.,Cannon,J.P.andMcCarthy,E.J.,2015.Essentialsofmarketing:A marketing strategy planning approach. McGraw-Hill Education. Rossiter, J.R., Percy, L. and Bergkvist, L., 2018.Marketing communications: Objectives, strategy, tactics. SAGE. Scarborough, N.M., 2016.Essentials of entrepreneurship and small business management. Pearson. Scott, D.M., 2015.The new rules of marketing and PR: How to use social media, online video, mobile applications, blogs, news releases, and viral marketing to reach buyers directly. John Wiley & Sons. Wood, M.D., Thorne, S. and Butte, G., 2017. Technology infusion and marketing. InMental Modeling Approach(pp. 69-82). Springer, New York, NY. Wrenn, B. and Mansfield, P.M., 2014.Marketing planning guide. Routledge.
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