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KOTLER JOB APPLICATION Marketing Management Philip Kotler – Kevin Lane Keller SUMMARY PORTION 1 Understanding Marketing Management4 Defining Promoting for the 21st Century4 Developing Marketing Strategies and Plans5 PART two Capturing Promoting Insights13 Collecting Information and Forecasting Demand13 Conducting Promoting Research16 PART 3 Connecting with Customers18 Creating Long-term Loyalty Relationships18 Analyzing Consumer Markets21 Examining Business Markets25 Identifying Market Segments and targets28 COMPONENT 4 Building Strong Brands31 Creating Manufacturer Equity31 Creating the Brand Positioning34

Competitive Dynamics36 PART five Shaping the marketplace Offerings39 Environment Product Strategy39 Designing and Managing Services41 Developing Prices Strategies and Programs46 COMPONENT 6 Providing Value53 Developing and Managing Integrated Marketing Channels53 Managing Retailing, Wholesaling, and Logistics58 PART several Communicating Value60 Designing and Managing Integrated Marketing Communications60 Managing Mass Communications: Marketing, Sales Special offers, Events and Experiences, and Public Relations63 Managing Personal Communications: Direct and fun Marketing, Person to person, and Personal Selling68

PART almost eight Creating Good Long-term Growth72 Introducing New Market Offerings72 Tapping into Global Offerings86 Managing a Holistic Promoting Organization to get the Very long Run93 PART1: UNDERSTANTING MARKETING AND MANAGEMENT PHASE 1: DEFINITNG MARKETING TO GET THE modern world THE IMPORTANCE OF PROMOTING Marketing is known as a significant dimension of any business in today’s highly competitive environment and financial accomplishment is often dependent on marketing ability. Marketing is vital for business achievement. THE OPPORTUNITY OF MARKETING Marketing is about discovering and conference human and social needs.

One of the shortest explanations of marketing is the process of appointment needs of course profitably. Marketing supervision is the skill and the technology of choosing focus on markets and achieving, keeping and increasing customers though creating, managing, interacting and providing superior buyer value. UNDERSTANDING MARKETS Advertising can be used intended for: Services, products, services and products, incidents, experiences, persons, places tips Marketing managers seek to impact the level, time, and formula of demand to meet the organization’s targets. Eight says of industry demand are possible: Complete demand: consumers buy every services or products brought to market. , Overfull demand: there are even more consumers requiring the products than could be satisfied. , Irregular require: consumer acquisitions vary on a seasonal, regular monthly, weekly… , Declining require: consumers continue to buy services or products less regularly or not every. , Unfavorable demand: customers dislike the service or product and may even pay a cost to avoid that. , non-existent demand: customers may be unaware of or uninterested in the product or perhaps service. , Latent require: consumers may well share a strong need that cannot be happy by a preexisting product or service. Unwholesome demand: buyers may be drawn to services or products that have undesirable sociable consequences. Every time, marketers need to identify the underlying factors behind the demand express then decide a plan of action to shift the demand to a even more desirable condition. HOW IS MARKETING USED? Marketing practice can be viewed in several perspectives. The conventional view is definitely the KOTLERIAN promoting management watch of controlling the advertising mix following selecting target market and placement. TRANSACTIONAL, CONNECTION AND SUPPORT MARKETING

Deal marketing is defined as attracting and satisfying homebuyers by managing the factors in the marketing mix. Interaction marketing: signifies face to face conversation between people. Network marketing is by using the buyers but occurs across and among corporation. The concept originated by the Nordic school via northern The european countries and improvements from the UNITED STATES. Relationship advertising in its simplest form can be described as progression from the dominant and often criticized the 4 G focus. The relational is definitely focus on building long-term human relationships with consumers CHAPTER a couple of: DEVELOPING PROMOTING, STRATEGIES AND PLAN

Marketing is about fulfilling consumers’ needs and wishes. The task of any organization is to deliver customer benefit at money. I. The value Delivery Process The traditional watch of marketing is usually that the firm makes something after which sells that. Companies that subscribe to this view have best possibility of succeeding in economies proclaimed by goods shortages where consumers are certainly not fussy about quality, features, or style-for example, basic staple goods in expanding markets. Generally there, the “mass market” is actually splintering in to numerous mini markets, every single with its individual wants, perceptions, preferences, and purchasing criteria.

To the wise competitor need to design and deliver offerings for well-defined target market segments. II. The significance Chain Michael Porter of Harvard has proposed the worthiness chain as being a tool pertaining to identifying methods to create even more customer worth. According to this model, every firm is known as a synthesis of activities performed to design, create, and marketplace, deliver, and support it is product. The significance chain recognizes nine smartly relevant activities-five primary and 4 support activities-that create worth and cost in a specific business. This individual firm’s facilities covers the expenses of basic management, organizing, finance, accounting, legal, and government affairs.

The business task should be to examine it is costs and gratification in every value-creating activity and to search for ways to increase it. Managers should approximate their competitors’ costs and performances while benchmarks against which to compare their particular costs and satisfaction. The business’s success depends not only how well every single department executes its job, but also on how well the company heads departmental actions to conduct core business processes. • The market-sensing process. • The new-offering realization method. • The client acquisition process. • The consumer relationship administration process. The fulfilment managing process. To hit your objectives, a firm also needs to look for competitive advantages further than its own businesses, into the worth chains of suppliers, marketers, and consumers. III. Primary competencies Many businesses today delegate less-critical assets if they can obtain quality or cheaper. The key, is always to own and nurture the time and competencies that make up the essence from the business. A core competency has three characteristics: 1 ) It is a method to obtain competitive edge in that that makes a significant contribution to perceived customer benefits. 2 .

It has applications in a wide variety of markets. a few. It is difficult for competitors to imitate. Organization realignment might be necessary to maximize core competencies. It has three steps: 1 . Understanding the business principle or “big idea” 2 .

You go through ‘Resume Promoting Management, fourteenth Edition , Kotler , Keller’ in category ‘Essay examples’ Healthy diet the business scope 3. Placement the company’s company identity. IV. A holistic advertising Orientation and Customer Value A holistic marketing orientation could also help catch customer value. The all natural marketing platform is designed to address three important management queries: 1 . Worth exploration- How could a company discover new value opportunities? installment payments on your

Value creation- How can a company efficiently produce more guaranteeing new value offerings? three or more. Value delivery, , How can a company work with its capacities and system to deliver the modern value offerings more efficiently? A. Value pursuit Understanding the associations among three spaces: , The customer’s cognitive space , The company’s competence space , The collaborator’s useful resource space. N. Value Creation To create fresh customer benefits, marketers must understand what the customer thinks about, wishes, does, and worries about and watch whom buyers admire and interact with, and who influences them.

C. Value Delivery The company need to become proficient at client relationship managing, internal source management, and business partnership management. Consumer relationship managing allows the company to discover whom its buyers are, that they behave, and what they will need or wish. V. The central part of the proper planning Powerful marketing as a result requires firms to have capabilities such as understanding customer benefit, creating buyer value, providing customer benefit, capturing buyer value, and sustaining client value.

To make certain they select and execute the right activities, marketers need to give concern to strategic planning in three essential areas: owning a company’s businesses as a great investment portfolio, assessing each business’s strength by simply considering the market’s growth rate and the company’s position and fit in that market, and establishing a technique. For each business, the company need to develop a strategy for obtaining its long-run objectives. The marketing plan is the central instrument pertaining to directing and coordinating the marketing efforts. The advertising plan works at two levels: ideal and tactical.

All corporate and business headquarters undertake four planning activities 1 . Defining the organization mission 2 . Establishing ideal business units a few. Assigning assets to each SBD 4. Examining growth chances I. Identifying the corporate quest To determine its objective, a company will need to address Peter Drucker’s typical questions: Precisely what is our organization? Who is the consumer? What is of value to the customer? What is going to our organization be? What should our business be? These simple-sounding questions happen to be among the most tough a company is ever going to have to answer.

The good objective statements have got five significant characteristics. Initial, they give attention to a limited quantity of goals. • Industry. Some companies will operate in just one industry, some just in a group of related industrial sectors, some just in commercial goods, client goods, or perhaps services, and a few in any industry. • Companies applications. Organizations define kids of products and applications they will supply. • Competence. The firm determines the range of technological and also other core expertise it will learn and power. • Marketplace segment. The type of market or customers a company will provide is the industry segment. Straight. The straight sphere is definitely the number of channel levels, by raw material to final product and distribution, in which a company can participate. • Geographical. Kids of areas, countries, or country teams in which a organization will function defines their geographical sphere. II. Creating Strategic Sections Large corporations normally take care of quite different businesses, each requiring its own technique. General Electric powered has labeled its businesses into 49 strategic sections, SBlls. A great SBU offers three features: 1 .

This can be a single organization, or a collection of related businesses, that can be organized separately from your rest of the firm. 2 . It has its own group of competitors. a few. It has a director responsible for strategic planning and profit performance, who controls most of the factors affecting profit. III. Determining Resources to Each SBU When it has described SBUs, supervision must decide how to spend corporate methods to each. Management would want to develop, “harvest” or perhaps draw funds from, or perhaps hold on to the business enterprise. IV. Assessing growth Possibilities A. Rigorous Growth

Company management’s initially course of action should be are perspective of opportunities for increasing existing businesses. B. Integrative Growth A small business can maximize sales and profits through backward, for- ward, or perhaps horizontal the usage within the industry. Mass media companies have got long gained the benefits of integrative growth. C. Diversification Development Diversification expansion makes sense once good possibilities exist away from present businesses-the industry is extremely attractive plus the company gets the right mix of business strong points to be successful. M. Downsizing and Divesting Old Businesses

Weak businesses need a disproportionate sum of bureaucratic attention. Companies must thoroughly prune, collect, or divest tired aged businesses in order to release needed resources to other uses and reduce costs. VI. Firm and Organizational Culture Five key techniques for managing change in an organization: 1 . Avoid the innovation title-Pick installment payments on your Use the pal system-Find three or more. Set the metrics in advance- four. Aim for speedy hits first- 5. Obtain data to support your gut-Use testing to get responses and boost an idea The company Unit Tactical Planning I actually. The Business Mission

Each organization unit should define its specific objective within the broader company quest. Therefore , a television-studio-lighting-equipment company might determine its mission as, “To target key television companies and become their vendor of preference for light technologies that represent advanced and trusted studio lamps arrangements. ” II. SWOT ANALYSIS The overall evaluation of a company’s talents, weaknesses, options, and risks is called SWOT analysis. 2 weeks . way of monitoring the exterior and inner marketing environment. A. External Environment (opportunity and threat) Analysis

The organization unit should certainly set up an advertising intelligence program to track styles and important developments and any related opportunities and threats. Great marketing is the art of finding, developing, and profiting from these opportunities. An advertising opportunity is an area of buyer will need and fascination that a organization has a high probability of profitably gratifying. Opportunities can take many forms, and online marketers need to be proficient at spotting these people. To evaluate chances, companies are able to use market opportunity analysis (MOA) to determine all their attractiveness and probability of success by simply asking concerns like: To articulate the advantages convincingly to a defined concentrate on market(s)? , To locate the target market(s) and reach these cost-effective mass media and transact channels? , To possess and have access to the critical features and methods we need to provide the customer rewards? , To deliver the benefits greater than any genuine or potential competitors? your five. To level of return meet or exceed each of our required tolerance for purchase? B. Inner Environment (strengths and weaknesses) It’s one thing to find desirable opportunities, and another to take advantage of them.

Each business needs to evaluate the internal pros and cons. C. Target Formulation This stage with the process is known as goal formula. Goals happen to be objectives which can be specific regarding magnitude and time. The unit’s aims must meet up with four conditions: 1 . They need to be established hierarchically, from your most towards the least crucial. 2 . Objectives should be quantitative whenever possible. a few. Goals must be realistic. Desired goals should happen from a great analysis in the business unit’s opportunities and strengths, certainly not from wishful thinking. 5. Objectives has to be consistent.

It can not possible to increase sales and profits together. III. Strategic Formulation A. Porter Universal Strategies , Overall expense leadership. Businesses pursuing this strategy work hard to own lowest development and syndication costs for them to price below their competition and succeed a large market share. , Difference. The business concentrates on uniquely reaching superior efficiency in an significant customer advantage area valued by a large part of the market. , Target. The business targets one or more thin market portions. B. Ideal Alliances Service or product alliances-One firm licenses an additional to produce its product, or two companies with each other market their very own complementary products or a cool product. , Advertising alliances One company confirms to carry an offer for another industry�s product or service. , Logistics alliances One company offers logistical services another company’s product. , Prices collaborations A number of companies join in a special prices collaboration. Motel and rental car companies generally offer shared price savings. D. System Formulation and Implantation

The system has decided to attain technological leadership, it should plan applications to strengthen it is R section, gather scientific intelligence, develop leading-edge goods, train the technical salesforce, and develop ads to communicate the technological leadership. Businesses are as well increasingly realizing that except if they nurture other stake- holders-customers, personnel, suppliers, distributors-they may by no means earn satisfactory profits for the stockholders. E. Feedback and Control The company must point out that it is more important to “do the best thing”-to be effective-than “to do things right”-to be effective.

The most successful companies excel at both. Merchandise Planning: The Nature and Material of a Promoting Plan What, does a marketing plan appear like? What does this contain? , Executive overview and desk of contents. The promoting plan should certainly open using a brief of the main goals and recommendations. A table of con- tents traces the rest of the prepare and all the supporting explanation and functional detail. , Situation research. This section gives relevant backdrop data about sales, costs, the market, opponents, and the different forces in the macro environment.

How do we establish the market, the length of it, and how fast is it growing? Precisely what are the relevant tendencies? What is the product offering and what essential issues do we face? Organizations will use this all information to carry out a SWOT (strengths, disadvantages, opportunities, threats) analysis. , Marketing strategy. Right here the product director defines the mission, marketing and financial goals, and organizations and needs that the market offerings are intended to meet. The administrator then creates the product line’s competitive placing, which will advise the “game plan” to complete the plan’s objectives.

This all requires advices from other areas, such as purchasing, manufacturing, sales, finance, and human resources. , Financial projections. Financial projections include a sales forecast, a cost fore- players, and a break-even analysis. On the revenue side, the projections show the forecasted sales volume simply by month and product category. On the expenditure side, that they show the predicted costs of marketing, broken down into finer categories. The break-even analysis shows how many units the firm must sell monthly to counter its month-to-month fixed costs and average per-unit changing costs. , Implementation controls.

The last portion of the advertising plan describes the handles for monitoring and modifying implementation from the plan. Typically, it means out the desired goals and plan for each month or qU31ter, thus management may review every period’s outcomes and take corrective action as needed. PART three or more: CAPTURING ADVERTISING INSIGHTS PHASE 3: COLLECTING INFORMATION AND FORECASTING DEMAND Three innovations make the requirement of marketing details greater now than anytime in the past: , Rise of global marketing , New focus on buyers’ wants, preferences and behaviour , Trend toward non cost competition

To handle their examination, planning, rendering, and control responsibilities, promoting managers need a Marketing Information System (MIS). The MIS’s role is to assess the managers’ information requirements, develop the needed info, and spread that details in a timely manner. It really is easiest and effective with this method to gather information of varied countries as it provides: , Quick information , Competitive benefit , Courses the promoting decision That relies on internal company information, marketing brains activities , research. INNER RECORDS , MARKETING INTELLIGENCE

Spot essential opportunities , problems THE ORDER-TO-PAYMENT ROUTINE = the heart with the internal records system Popular firms will be those which may promise timely delivery and so they have to increase: o Rate o Precision o Performance This will save costs too and it is the MIS function! SALES INFO SYSTEMS Studies on current sales are indispensable to get marketing managers. Inventory data warehouse is an excellent tool to capture all important data This will help to be aware of every sort of situation and manage that! Cookies are a useful tool to supply information to companies.

Technological gadgets will be revolutionizing sales information systems but revenue dta should be carefully interpret. DATABASES, DATA WAREHOUSING, AND DATA MINING Databases are necessary to firms to organize their very own information. This is certainly used in several areas for different information: customer, product, revenue person, Advantages: Save sending expenses Support and make easy access to decision makers Can be used intended for statistical methods for usefukl data Managers may yield nonetheless deeper ideas using its individual in-house technology THE ADVERTISING INTELLIGENCE PROGRAM

It is a group of procedures and sources utilized by managers to have everyday information regarding pertinent developments in the advertising environment. It is also called HAPPENINGS DATA. Many steps can be taken by companies to improve the caliber of its marketing intelligence: , Train , motivate the sales force to identify and statement new development , Encourage distributors, merchants, and other intermediaries to pass along important brains , Network externally: presenting an immediate competitive advantage , Set up client advisory -panel , Benefit from government info resources Order information by outside suppliers: lower costs , Use online customer feedback systems to collect competitive intelligence Competitive intelligence function works bests when intelligence operations collaborate closely with key users in the decision-making process! Demands and Developments A trend is a direction or sequence of events that have a lot of momentum and sturdiness. We can draw distinctions between fads, tendencies, and megatrends. Trends are more predictable and durable. A pattern reveals the shape of the future. Trends and megatrends merit marketers’ close attention.

Identifying the main Force In the economical industry, companies and consumers are significantly affected by global forces. Considerable speedup of international transport, communication, and financial transactions, leading to the rapid progress trade and investment, especially tripolar operate. , The rising economic power of a number of Asian countries on planet markets. , The go up of trade blocs such as the European Union as well as the NAFTA signatories. , The severe debt problems of your numbers of countries, along with the raising fragility in the international economic climate.

Successful businesses realize that the marketing environment presents a neverending number of opportunities and threats. The major responsibility pertaining to identifying significant changes in the macroenvironment falls into a company’s internet marketers. More than any other group in the company, advertising managers must be the trend trackers and option seekers. 1 ) Within the swiftly changing global picture, marketers must screen six significant environmental forces: demographic, financial, natural, technical, political-legal, and social-cultural. installment payments on your

In the demographic environment, entrepreneurs must be aware of worldwide inhabitants growth, changing mixes of age, ethnic structure, and educational levels, the rise of not traditional households, large geographic shifts in population, as well as the move to micromarketing and away from mass marketing. 3. In the economic market, marketers ought to focus on salary distribution and levels of cost savings, debt, and credit availability. 4. In the social-cultural arena, marketers need to understand people’s views of themselves, other folks, organizations, culture, nature, and the universe.

They have to market products that correspond to society’s primary and second values, and address the needs of different subcultures in a society. five. In the environment, marketers need to be aware of raw-materials shortages, elevated energy costs and polluting of the environment levels, and the changing part of governments in environmental protection. 6th. In the technical arena, entrepreneurs should take consideration of the accelerating pace of technological transform, opportunities to get innovation, varying R, M budgets, plus the increased government regulation caused by technological transform.. In the political-legal environment, marketers must operate within the various laws regulating business practices and with assorted special-interest groups. CHAPTER 5: CONDUCTING PROMOTING RESEARCH The constituents of a modern marketing data system An advertising information program (MIS): contains people, products, and procedures to gather, short, analyze, examine and spread needed, regular, and accurate information to marketing decision makers. Internal Records Program It is the most elementary information program used by promoting managers. (Sales, prices, products on hand levels…)

The order-to-payment cycle Sales reporting system ADVERTISING INTELLIGENCE SYSTEM Is a set of methods and options used by managers to obtain their very own everyday information about pertinent improvements in the marketing environment? ADVERTISING RESEARCH SYSTEM Are the organized design, collection, analysis, and reporting of information and conclusions relevant to a particular marketing circumstance facing the organization? SUPPLIERS OF PROMOTING RESEARCH Ways: engaging pupils or teachers to design and carry out marketing studies, using online information services, checking out opponents.

THE ADVERTISING RESEARCH PROCEDURE Step 1 : Specify the problem and research objectives Step 2: growing the research strategy. Decisions within the data resources, research approaches, research devices, sampling program, and get in touch with methods 3: Collect the knowledge. The data collection phase of marketing research is the priciest and the the majority of prone to problem. Step 4: Assess the information. Get pertinent results from the collected data. Step five: Present the findings. Significant findings will be pertinent to the major marketing decisions facing management.

MARKETING DECISION SUPPORT SYSTEM Is a comprehensive collection of data, systems, tools and tactics with helping software and hardware in which an organization collects and expresses relevant details from organization and environment and converts it into a basis to get marketing action? FORECASTING AND DEMAND WAY OF MEASURING • A VOCABULARY PERTAINING TO DEMAND DIMENSION Market demand Market with regard to a product is definitely the total amount that would be bought by a identified customer group in a defined geographical location in a defined time period within a defined marketing environment under a defined program.

Market potential Is the limit approached by market require as market marketing expenditures approach infinitude, infiniteness, for a presented environment? Company demand May be the company’s believed share of market demand at alternative levels of business marketing work? Forecast Is a expected amount of company revenue based on a selected marketing plan and a great assumed promoting environment? A sales sampling Is the revenue goal set for a products, company split, or revenue representative? It can be primarily a managerial unit for defining and stimulating product sales effort. A sales budget

Is a conservative estimate from the expected volume of sales and is also used generally for making current purchasing, development, and cash-flow decisions. Firm sales potential ESTIMATING CURRENT DEMAND Total market potential Area marketplace potential •Market-build-up method •Multiple-factor index method 3. Industry sales and market stocks Estimating industry sales and market stocks (Identifying rivals and estimating their sales ESTIMATING FUTURE DEMAND Survey of buyers’ intentions Amalgamated of sales team opinions Expert opinion Marketplace test method PART three or more: CONNECTING WITH CUSTOMERS CHAP 5 CREATING LONG TERM LOYALTY RELATIONSHIPS

Building customer worth, satisfaction and loyalty Customer-perceived value (CPV) is the difference between entire perceived customer’s analysis of all the benefits and all the costs of an providing and the identified alternatives. Making use of value principles The customer value analysis discloses the company’s strengths and weaknesses relative to the ones from various rivals. Delivering large customer worth Loyalty can be described as deeply placed commitment to rebuy a preferred merchandise and support in the future despite situational impact on and marketing efforts having the potential to cause switching patterns.

The value proposition consists of the full cluster of benefits the company guarantees to deliver. The worthiness delivery system includes each of the experiences the client will have on the way to obtaining and using the offering. Total customer satisfaction Satisfaction is the difference between expectations and the product’s perceived efficiency. Product and service top quality Quality is the totality of features and characteristics of the product or service which satisfy direct or implicit needs. Increasing customer life span value Client profitability

A profitable buyer is a person, household or company that revenues will be higher than the company’s costs intended for attracting, advertising and providing that client. But it is definitely a difficult task, also for financial institutions. Customer profitability analysis is an accounting study which will estimates almost all revenue coming from a customer fewer all costs (distribution, messages or calls, traveling to meet the client, gifts). Measuring consumer life time worth Customer life time value estimates future income over client’s lifetime acquisitions. You can find that p. 172. Cultivating customer relationships

Customer relationship management (CMR) Client relationship management is the process of carefully taking care of detailed details about individual clients and all consumer “touch points”to maximize customer loyalty. An impression point can be any occasion which a customer satisfies a brand and a product. One-to-one marketing Determine your prospective customers and consumers, don’t go after everyone. 1 ) Differentiate customers in terms of (1) their needs and (2) their very own value to your company. Dedicate more work on the most effective customers. Do the customer success analysis. installment payments on your

Interact with person customers to boost your knowledge about their needs and create a more powerful relationship. 3. Customize products, services, and messages to each customer. Increasing value from the customer base • Reducing the rate of customer defection. • Increasing the longevity from the customer marriage. • Boost sells with new offerings and chances, like components for motorbikes if you promote Harley-Davidson. • Making low-profit customers even more profitable or terminating them. Like low-cost flying firms which charge customers pertaining to drinks or food. • Focusing extraordinary efforts on high-value clients.

Building dedication Developing devotion programs Frequency programs are design to provide rewards to customers who buy usually and in considerable amounts. Corporations have created team membership programs. Customer directories and databases marketing A customer database is usually an structured collection of thorough information about individual customers and prospects that may be current, accessible and actionable for advertising purposes (sells, maintain relationships). Database advertising is the procedure for building, keep and using customer sources to contact, work and build consumer relationships. Buyer databases

Buyer database consists of customers past purchases, demographics (age, birthday, and friends and family members), psychographics (activities, interests), media images (preferred media) and other valuable information. A company database includes past purchases, volumes, rates, profits, buyer team member titles, assessment of competitors all their strengths and weaknesses. Data warehouse and dataminig Firms use directories to: 1 ) Identify leads 2 . Choose customer will get a particular provide 3. To deepen client loyalty 4. To reactivate customer buys 5. To avoid serious customer mistakes CHAP 6 ANALYZING CONSUMER MARKETS

What impact on consumer habit? Consumer behavior is the study of how individuals, groups and companies select, use, and dispose of goods, companies, ideas, or experiences to satisfy their needs and wants. Cultural factors Culture is the important determinant of any person’s desires and habit because of values. Subcultures give more specific recognition and socialization for their associates. Subcultures consist of nationalities, religion, racial groups… Social classes are relatively homogeneous and enduring divisions in a society, hierarchically ordered and with members who reveal similar values, interests, and behaviors.

Reference groups A person’s reference groups are all the groups that have a direct or perhaps indirect influence on their behaviour or patterns. Membership organizations have an immediate influence. Principal groups are in frequent contact with anybody (family, close friends, neighbors, coworkers). Secondary groupings are spiritual, professional, trade-union groups. Hope groups happen to be those a person hopes to join. Dissociative groups depend on individual reject. Opinion innovator is the person who offers informal advice or perhaps information about a unique productor merchandise category. Relatives

From family a person acquires an orientation toward religion, national politics, and economics and a feeling of personal ambition, self-worth, and love. It is a more immediate influence upon everyday shopping for behavior. Position and status A role includes the activities a person is expected to perform. Each function carriers a status Personal elements Personality is a set of distinguishing human internal traits t relatively constant and long-lasting responses to environmental stimuli (including shopping for behavior). Manufacturer personality is described as the specific blend human qualities that we can easily attribute to a particular brand.

Lifestyle can be person’s style of living in the world as expressed in activities, hobbies, and thoughts. Key mental processes Motivation�: Freud, Maslow, Herzberg A need becomes a objective when its intensity pushes us to do something. Perception Belief is the method by which we all select, set up, and understand information advices to create a meaningful picture worldwide. Selective attention is the screening of stimuli and online marketers must work hard to attract consumers’ notice. People are more likely to detect stimuli that relate to a current need Individuals are more likely to recognize stimuli they will anticipate

Picky distortion is a tendency to interpret details in a way that suits our preconceptions. Because of the selective retention, our company is pore more likely to remember good points of a product we like and forget good points about rivalling products. Learning Learning comes from experiences and makes us changing our habit. A drive is a strong internal government impelling action. Cues are minor stimuli that decide when, in which, and how a person responds. Discrimination means that we have learned to recognize variations in sets of similar stimuli and can adjust our responses accordingly.

The hedonic prejudice says folks are more likely to credit failure to external causes and accomplishment to themselves. Memory Associative network memory space model explains that data are stored and associated with a different standard of strength. Company associations consist of all brand-related thoughts, feelings, perceptions, pictures, experiences, philosophy, attitudes, etc that become linked to the company information kept. Memory encoding describes how and where information gets to memory. Recollection retrieval is the information gets out of the memory.

The buying decision process Marketers need to identify whom makes the obtaining decision: people can be initiators, influencers, deciders, buyers, or perhaps users. Trouble recognition Details search Personal: family, good friends, neighbors. Commercial: advertising, web sites, salespersons, packaging, displays. General public: mass media. Experiential: handling, analyzing, is making use of the product. Market partitioning is definitely the process of discovering the structure of characteristics that guidebook consumer decision making for the marketer to comprehend different competitive forces and how this different sets receive formed.

Evaluation of alternatives Belief can be described as descriptive thought that a person holds regarding something. Thinking are a individual’s favorable or perhaps unfavorable critiques, emotional emotions, and actions tendencies toward some subject or thought. Expectancy-value model of attitude development shows that customers evaluate products by incorporating their company beliefs relating to importance. Purchase decision Heuristics will be rules of mental cutting corners in the decision process. With the conjunctive heuristic the customer actively seeks every attribute and chooses the irst alternative that meets the minimum regular for all characteristics. With the lexicographic heuristic the customer chooses the best brand on the basis of its recognized most important attribute. With the elimination-by-aspects heuristic the client compares brands and gets rid of those which avoid correspond to the minimum satisfactory cutoffs. The perceived risks can modify, delay or steer clear of a purchase decision. Functional risk: the product does not perform about expectations. Physical risk: the product could risk health or perhaps well-being from the user or perhaps others.

Economical risk: the merchandise is not really worth the purchase price paid. Sociable risk: the merchandise results in distress from others. Psychological risk: the product impacts the mental well-being in the user. Postpurchase behavior Additional theories of consumer decision making Level of client involvement Client involvement is definitely the level of engagement and effective processing responding to a marketing government. Decision heuristics and biases The availability heuristic means that such as a customer who had troubles using a product will be more likely to get a future product with warranty.

The representativeness heuristic ensures that the customer purchase a product to appear as representative of a whole category. The anchoring and modification heuristic implies that the first sight determines the interpretation with the further information. That is why it is very important to produce a first very good impression for the salesperson, for example. Mental accounting Mental accounting refers to the way consumers code, categorize, and evaluate monetary outcomes of choices. Prospective client theory retains that the buyers frame their decision alternatives in terms of profits and losses according into a value function.

CHAPTER six ANALYSING CLIENT MARKETS A The study of buyer behavior Client behavior is the study of when, so why, how and where people do or perhaps do not buy products. It attempts to understand the buyer wants and decision making procedure both individually and in groupings. It also efforts to evaluate impact on on the consumer from organizations such as relatives, friends, reference point groups, and society generally speaking. Its can be divided into 3 interdependent sizes: , The study of culture , The study of sociable group , The study of the Culture

Culture is the vital determinant of your person’s wishes and tendencies. Every lifestyle can be divided in subcultures that include ethnicities, religions, geographic region etc and offer more precise id for their associates. Multicultural promoting appear to fulfill the different subcultures. We can also observe different social classes with people who have the same values, interests and behavior. Every social course show various product and brand personal preferences on distinct level. Interpersonal groups a. Reference group A reference point group can be described as group that influences persons attitudes and behavior.

You will find different categories of groups: , Membership groups: have a direct influence in people (family, friends, colleagues…) , Aspirational groups: happen to be thosea person wish to become a member of , Dissociative groups: are thosea person, does not belong b. Friends and family Family is one of the most influential principal reference group. There are two families: , Family of positioning: parents and sibling , Family of procreation: wife /husband children The consumer consumer A consumer’s decisions are motivated by personal characteristics such as the age and stage inside the life pattern, the job and economical, the life style and principles and the shopper’s personality.

So to study and understand buyer behavior is actually really important in the first place the consumer their self or him self. Explore into all these elements can provide signs to attain and serve customers more effectively. N Key psychological process Motivation: Freud, Maslow, Herzberg a. Freud’s theory For Freud people ‘s behavior happen to be unconscious. Persons not only react to their affirmed aptitudes, yet also to other. m. Maslow’s theory c. Herzberg’s theory Pertaining to Herzberg there are two different facets: , Dissatisfiers: factors that cause dissatisfaction , Satisfiers: factors that cause fulfillment

The retailers should try to keep away dissatisfiers’ factors and identify the key satisfiers or perhaps motivator of purchase available in the market and then present them. I. Perception Perception is the operations by which we select organize and translate information. Individuals have different notion of the same thing because of 3 perceptual operations: , Selective attention , Selective bias: tendency to interpret data in a way that fits our preconception , Picky retention: just preserve information that support our manners and beliefs II. Learning People learn from their activities and change their very own behaviour.

Entrepreneurs should build demand for an item by associating it with strong hard disks (internal government pushing action), cues (minor stimuli) and providing confident support. III. Memory Memory is recognized between to type of storage short-term memory space and long term memory. Promoting is a good method to be sure that consumers have the right type of products and companies experiences to develop the good brand knowledge and keep it in memory. Four main internal processes impact consumer behavior r inspiration, perception, learning, and memory. C Views on customer behavior

Quite a few perspectives in consumer tendencies can be considered: , The behaviorist perspective: give attention to the impact of external impacts on buyer behavior , The information control perspective: came out in the 60’s and seventies thinks about just how consumers psychologically process, retail outlet, retrieve and use marketing information in the decision method , The emotional perspective: consumers affections should be contained in the explanation of consumer making decisions , The cultural point of view: culture present consumers look at , A multiperspective strategy: consumers don�t have unlimited mental resources M The ordering decision procedure the five stage version

To understand how consumer make buying decisions, marketers ought to identify who have makes and has contribute into ordering decision. Persons can be initiators, influencers, deciders, buyers or perhaps users. The classical ordering process includes the following succession of incidents: 1 . Trouble recognition (the buyer identifies a problem) 2 . Information search several. Evaluation of alternatives 4. Purchase decision 5. Content purchase patterns (post purchase satisfaction, action, use and disposal) Marketers’ have to be familiar with consumer tendencies at each stage. It’s not at all times easy since many different elements influence the diverse habit.

CHAPTER eight: IDENTIFYING MARKET SEGMENTS AND TARGETS My spouse and i. The business market versus the consumer market Organization marketers possess numerous characteristics that comparison with the ones from consumer market segments: , Fewer larger buyers: deal with much bigger purchaser than the buyer market , Close supplier customer relationship: suppliers adjust their providing to person business consumer needs , Professional purchasing: goods happen to be bought by trained purchasing agents , Multiple shopping for influence: more people typically influence business buying decisions , Multiple sales telephone calls Derived require: the demand for business goods resulting from the demand for consumer products , Inelastic demand: the necessity for goods won’t alter even if rates change , Fluctuating require: the demand for people who do buiness goods and services are usually more unstable than the demand for customer goods and services , Direct purchasing: business customers buy directly for produces II. Ordering situations The company buyer confronts many decisions in making a purchase. The number depends on the buying condition: complexity from the problem staying solved, newness of the shopping for requirement, number of people involved and time requirement.

There are 3 types of buying situations: , Straight Rebuy: The purchasing department reorders supplies and chooses by suppliers by using an approved list. The suppliers’ effort to take care of service and product quality. Their objective is to get a tiny order and then enlarge their purchase talk about over time. , Modify rebuy: the buyer would like to change products specifications , New process: the buyer purchases the product for the first time III. Systems Buying and Selling Actually, « system buying » is a practice about federal government purchases of major weapons and communications systems.

Thus, many organization buyers want to buy an overall total solution to problems from one retailer. A system providing is a key industrial web marketing strategy in bidding to build considerable industrial tasks, such as public works, steel manufacturer, irrigation systems, sanitation devices, pipelines, ammenities and even fresh towns. M. Participants available buying method I. The buying middle The shopping for center consists of all those persons and teams who bring about in the getting decision making procedure. Its incorporate all associates of the firm who experience any roles in the purchase decision process. Initiators: request anything be purchased , Users: utilize the product, initiate the ordering proposal , Influencers: folks who influence the buying decision , Deciders: decide on merchandise requirements or perhaps on suppliers , Approvers: authorize the proposed actions , Potential buyers: have formal authority to decide on the distributor and set up the order terms , Gatekeepers: have the power to prevent sellers or information by reaching member II. Shopping for centre impacts Buying centre typically include several individuals with different interest.

If the business comes from to effect these participants they should try to be attentive to many factors such as environment, organization, individual, motivations and interpersonal influences. III. Ordering centre focusing on Business marketers should solution at some inquiries to target all their efforts appropriately. Who would be the major decision participants? What decisions perform they impact? What is all their level of affect? The small vendors focus on reaching the key ordering influencers and bigger sellers the multilevel detailed selling to achieve many individuals. C. The Purchasing/Procurement Process a. Purchasing Department Perceptions

Recent competitive pressures have got led corporations to up grade their purchasing departments and elevate managers to vice presidential list. These new, more intentionally oriented getting departments include a objective to seek the best value from fewer and better suppliers. w. Purchasing Firm and Government Some corporations have begun to centralize purchasing. Headquarters pinpoints materials bought by several divisions and buys these people centrally, attaining more purchasing clout. As well, companies are decentralizing some purchasing operations by empowering personnel to purchase small-ticket items.

Deb. Stages inside the buying method The buying process consists of: 1 . Issue recognition: the business recognizes a purpose that can be set by purchasing a great or service. 2 . General need information and item specification: standard characteristics and required volume 3. Distributor search: determine the most appropriate suppliers 4. Proposal solicitation: ask the certified suppliers to suggest plans 5. Supplier selection: the buying middle usually use a supplier analysis to identify the most attractive suppliers 6. Order-routine specification: talks 7. Efficiency review: report on the picked supplier

Elizabeth. Managing organization to method of trading Business entrepreneurs must contact form strong a genuine and interactions with their buyers and provide all of them added worth. Some customers, however , might prefer more of a transactional romance. a. The Benefits of Vertical Coordination Much study had strongly suggested greater top to bottom coordination among buying partners and sellers, so they can surpasse merely transacting and instead employ activities that creates more value pertaining to both parties. Building trust is definitely one prerequisite to healthy long-term human relationships. b. Business Relationships: Hazards and Opportunism

Researchers include noted that establishing a customer-supplier marriage creates stress between shielding and version. Vertical skill can assist in stronger customer-seller ties although at the same time may increase the risk to the client’s and suppliers specific assets. Specific investments, however , likewise entail considerable risk to both customer and supplier. Transaction theory from economics maintains that because these types of investments are partially sunk, they fasten the organizations that make all of them into a particular relationship. We. Transactions price economics N. Institutional and government marketplaces

PART some: BUILDING STRONG BRANDS PHASE 9 CREATING BRAND VALUE I. What is a brand value A. Part of brand Permit to consumers evaluate goods (of certain brands), in order to find their needs. Company signal a particular level of quality. Brand offer to safeguard customers and firms M. The scope (ampleur) of branding Your brand resides in the minds of consumer since an identification One of the first personalisation strategy can be: consumers must be convinced all their meaningful differences among brands in services or products C. Defining brand equity -is the added value gifted on product and support customer primarily based brand collateral: the customer company knowledge is definitely + when he reacts more favorably to a product and –when responds less beneficially 3 tips for beneficially react: several responses about consumer needs associated the brand of a thing (image…), and ensuring customer has wonderful experiences with products. M. Brand equity as a connection -brand knowledge (decide by customer) dictates future way of the brand , Brand assure: is what the brand is and must do for consumers So , money invest in marketing is usually an investment pertaining to consumers’ brand knowledge At the. brand fairness model some models of N. equity designs brand asset valuator (p 283) your five categories: differenciation, energy, revelance, estum, understanding -brandz: (p 284) relationship with manufacturer (pyramid) -AAKER model: typically elements (value, uses, meaning, origin nation, personality, symbols) -brand reverberation model (p 285): advancement, building goals II. Building brand equity This is the creating to have the correct brand understanding of consumers Farrenheit. Choosing brand elements -It’s that determine and identify the brand -6 criteria: memorable, meaningful, amiable, adaptable, transferable (for a brand new product, geography), protectable (ofcourse not become universal as Tissue, scotch).

G. Designing holistic marketing actions Brand exposure to the consumer, you will find 3 phase: Personalization: -stop mass marketplace, throwback to personalizing promoting. , Each customer is exclusive: one to one marketing -build a strong card holder’s relationship Integration: -traditional combine marketing basically adequately, today we need variet of marketing to strengthen the brand. (Sponsoring, communication, promo, events……….. ) Internalization: -companies must take up an international perspective Choose the right second, link external and internal marketing and bring the brand alive for employees They would.

Leveraging (influence) secondary association Linking the rand name with others information (p290), a brand can build fairness by backlinks with others entities. 3. Measuring brand equity 2 basic methods: -Brand review: uncover options for brand value, suggest approach to improve the equity. Company audit is use to prepare marketing plan -brand tracking studies: understanding thank to quantitative data from buyers, to aid day to day decision marketing. 4. Managing company equity Brand management needs a long term look at of marketing activities I. Manufacturer reinforcement -Brand need to be thoroughly managed to endure

Improve merchandise, service, and marketing Demands innovations/relevance through marketing program (p295) -marketing need some change to be competitive -brands need activities to understanding (new goods, creatively design and style, ad campaign…) J. Manufacturer revitalization Fresh competitors can affect a brand, so brand have to be refresh Solution: -understanding the original source of brand equity -bad association loosing the brand name??? -create fresh positioning -change marketing program -come back to standard image V. Devising (concevoir) a brand Technique -Brand extendable: establish brand with introduce a new one sub brand: new brand combine with existing company -brand range: all item -License product: brand name has become licensed to make the product K. Branding decision Develop a brand for a merchandise: 4 strategies Individual identity: (old un Paso) edge, if the product is low quality brand is not hurt Quilt family term: development expense is lower mainly because we avoid need research/add, to create reputation Separate friends and family name for any products: former mate: craftsman intended for tools Corporate and business name put together with individual merchandise name: Kellogg: kellogg’scorn flakes L. Company extension Advantages: -customers find out parent manufacturer don’t need to produce awareness for marketing, connection Feed again effect: knowledge Disadvantages: -confusion with new product -harm, hurt parent manufacturer with bad a product (Success characteristic n 9. eight p301) Meters. Brand portfolio Marketers need multiple brands to follow these sectors. Aim target of brand profile is take full advantage of brand insurance coverage. -low end entry: catch the attention of customers to brand operation -high end prestige: respect of brand with adds PART 10 CRAFTING THE BRAND POSITIONING SEGMENT MARKETING A market section consists of a number of customers who have share an identical needs and wants.

Instead of creating the sectors, the marketer’s task is always to identify them and to choose one to target. Market portions can be characterized in different ways, one strategy is to: Discover preference section categorized all of them by: Homogeneous preferences: in case the customers have similar preferences Diffused preferences: the customer preference differ greatly within their requirement Clustered preferences: when ever natural marketplace segment finish groups of clients with shared preferences ONLINE MARKETING A niche is marketing is narrowly identified customers group seeking an exclusive mix of rewards or principles.

Marketers generally identify niches by dividing a market in to subsegments. Niche markets are often fairly tiny is term of amount but amount to a sufficientetly attractive size, profit and growth potential. Also they are less likely to attract many other powerful competition • Centering their resources to gain financial systems though specialty area LOCAL ADVERTISING Customizes goods to match the perceived require of local areas The chance associated with localized marketing includes: • A tendency to drive the manufacturing costs and to decrease economies of scale Grassroots marketing

SPECIFIC MARKETING Promoting one to 1 The studies seek to establish segment by looking at detailed characteristics: geographic, demographic and psychographic. GEOGRAPHIC SEGMENTATION Break down the market in to different physical units including nations, declares, regions… DEMOGRAPHIC SEGMENTATION The industry is divided into groups on the basic of varying such as age range, family size, occupation, race… PSYCHOGRAPHIC SEGMENTATION Psychographic single profiles are typically created with reference to 3 variables understand as the AIO factors that describe individual way of life: 1 . Actions 2 . Interests. opinions BEHAVIOURAL SEGMENTATION Marketers place potential buyers into groups on the basic of their understanding of, attitude toward, use of or perhaps response to an item. To be competitive more effectively many businesses are now adopting target marketing. Instead of scattering their marketing efforts they can be focusing on customers they have the highest chance of gratifying. Target advertising includes three activities: industry segmentation, marketplace targeting and market setting. STEPS IN SEGMENTATION PROCESS 1 . Needs-based segmentation Group customers into sectors based on related needs installment payments on your Segment identification

Segment by behavior, psychographic, individual, demographic and geographic 3. Section attractiveness: Decide the elegance of each part 4. Section profitability: Identify segment earnings 5. Section positioning: for each and every segment make a value task and product-price positioning strategy based on that segment’s exceptional customer want and features 6. Segment “acid test”: create portion storyboard to try the elegance of each segment’s positioning approach 7. Promoting mix strategy: Expand segment positioning strategy to include most aspects of the marketing blend: the 4P

EFFECTIVE SEGMENTATION CRITERIA A powerful segmentation must be: 1 . Measurable: size, purchasing power… 2 . Substantial: the segment happen to be large and profitable enough toserve three or more. Accessible: the segment may be effectively come to and seved. 4. Differentiable: the part are distinguishable 5. Actionable: effective applications can be formulates for bringing in and portion the portions Positioning is a act of designing the organization offering and image to occupy a distinctive place in the minds from the target market. The goal is to establish the rand name in the head of the consumers.

The result of setting is the powerful creation of the consumer- focused value idea CHAPTER 10: COMPETITVE DYNAMICS Without customers, you don’t have business Creating dedicated customers is at the cardiovascular system of every business, the only worth your company will ever create is definitely the value contained in the customers. Managers who think that costumer may be the company’s only true “profit center” consider the traditional firm chart (first figure), effective marketing companies invert the chart (second figure) At the very top the customer, the front line is the people that meet, serve and gratify customers

Corporations recognize the importance of fulfilling theirs consumer in order to develop brand reputations that can produce a sustainable competitive advantage The concept of costumer-perceived benefit enables entrepreneurs to discover what consumers need though the medium market research CUSTOMER-PERCEIVED VALUE (CPV) The CPVis the difference involving the prospective user’s evaluation coming from all benefits and everything the costs of an offering as well as the perceived alternatives. Total costumer benefit is the perceived value of the package deal of economic, functional and psychological benefits consumers anticipate from given market giving.

Total costumer cost is the perceived package of costs costumers be prepared to incur in evaluating, obtaining, using and disposing of the given industry offering BUILDING CUSTOMER SATISFACTION Customers want devotion, not excellence Customer can easily sense each time a companies are consistently more dedicated to shareholders, employees and regulators than to people who buy goods and solutions, customers aren’t being disloyal, they are being discriminating. The question is not how could we significantly increase consumer loyalty, although how can we radically boost our own loyalty to consumers.

To increase our sellers, we should develop customer’s loyalty Total customer satisfaction If the buyer is content after obtain depends on the offer’s performance, if the performance is catagorized short of objectives, the customer is usually dissatisfied, in case the performance meet the expectations, the customer is satisfied, if the overall performance exceeds objectives, the customer is extremely satisfied or delighted. Client assessments of product efficiency depend on many factors, especially the type of loyalty relationship the customer has while using brand.

Even though the customer-centre company seeks to create a high client satisfaction, that is not just his ultimate goal. Organization might be able to maximize its profitability by means other than elevated satisfaction. Monitoring satisfaction Corporations are methodically measuring how well that they treat buyers, identifying the factors shaping satisfaction and making changes in their businesses and promoting as a result Customer satisfaction Companies ought to measure customer satisfaction regularly, since an important step to customer preservation is customer satisfaction.

A high client satisfaction brings substantial profits, the consumer stay for a longer time, the customers are less sensitive towards the price and pay less focus on the competing brand. Measurement techniques Many methods are present to evaluate customer satisfaction by way of example periodic online surveys, customer loss rate. Effect of customer satisfaction For customer-centre companies, customer satisfaction is equally a goal and a marketing tool. Companies must be especially concerned today using their customer satisfaction level.

MAXIMIZING BUYER LIFETIME VALUE Customer profitability A profitable customer can be described as person, home, or company that with time yields a revenue stream that is greater than by a satisfactory amount you�re able to send cost stream for bringing in, selling and servicing that customer. CREATING CUSTOMER INTERACTIONS Maximizing customer-perceived value means cultivating long lasting customer relationship. Companies are at this point moving away from not economical mass marketing to finely-detailed marketing built to build strong customer associations.

Customer romance management Customer relationship supervision (CRM) is the process of properly managing thorough information about individual customers and all customer “touch point” to optimize

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