Benefits-Drawbacks

What Is Content Marketing ?

Content marketing is a process of creating and publishing online content such as blogs, videos, e-books, podcasts, articles, social media posts etc. to attract large group of audience. It is a long-term marketing strategy that helps to attract potential customers and generate online sales. Content marketing is one of the best alternatives of traditional marketing, in which marketers can earn long lasting income with less effort and cost.

Benefits Or Advantages Of Content Marketing

The main advantages of content marketing strategy can be described as follows:

1. It Attracts More Audience

You can promote your content through different social media platforms such as Facebook, twitter, pinterest, Linkedin, youtube TikTok , etc. Search engine optimization helps to drive more traffic to you blog or website. Publishing informative content, proper SEO and sharing in social media helps to attract large group of targeted audience. 

2. It Increases Conversion Rate

Because of high quality content and better promotion, it draws the attention of large audience. People start sharing your content through emails, and social media which makes the content viral on the internet. Because of wider coverage it increases visibility, generates leads and increases conversions.

3. It Is Simple And Cost Effect

If you have good writing skill, photography or videography skill then you can start content marketing. Content creators or bloggers can do their job from home. It is more cost effective than traditional marketing.

4. High And Long Lasting Income

Another benefit of content marketing is long lasting income. It can generate significant amount of income if you can produce better content because good content attracts more people. Evergreen contents (especially blog and website content) generate income for long period of time.

5. It Builds Customer Trust And Relationship

Content marketing helps to build trust and better relationship with customers. It increases customer loyalty, reputation and goodwill of your brand.

6. Best Alternative For Traditional Marketing

Most people feel irritated by display banners and other forms of traditional advertisements. They use ad blockers to get rid of such advertisements. But content marketing provides relevant information to the audience. So, it may be a good alternative for those clients who want to avoid display ads. 

Drawbacks Or Disadvantages Of Content Marketing

The main disadvantages of content marketing can be described as follows:

1. It Is Complex And Time Consuming

It requires very good writing skill to create written content, needs photography and videography skill to make audio visual content. Web development and SEO knowledge is required to promote the content on the internet. It takes more time to reach audience. So, content marketing is difficult and time taking process.

2. No Immediate Benefit

Producing valuable content is not an easy task. It requires good knowledge and research to find out useful content. It takes time to produce and promote the content in different social media platforms. So, it does not provide immediate benefit to the producer.

     Also Read: 

Advantages And Disadvantages Of Direct Marketing

Advantages And Disadvantages Of Digital Marketing

Advantages And Disadvantages Of Traditional Marketing

3. Requirement Of Special Skill And Knowledge

Content writing is a creative task. So, it requires adequate knowledge, good writing and other skills such as web development, search engine optimization skill, social media handling skill etc. 

4. It Is Not Suitable For All Types Of Business

Content marketing is not suitable for some business such as taxi service, hair salon, beauty parlor etc. 

5. It Is Influenced By The Change

Constant changes in trends, technology and peoples' interests, affects content marketing. It is very difficult to remain competitive in the changing environment.

Pros:

- It helps to reach more audience globally

- It consumes less time, effort and costs than traditional marketing

- It helps to increase traffic,which helps to generate lids, conversion and sales

- It improves brand awareness and customer loyalty

- It is far better than traditional marketing

Cons:

- It is a long term strategy, so it is a time consuming process

- There will be no immediate benefit 

- It requires special skills, knowledge and creativity

- Changes in trends ,technology and government policy may influence this marketing strategy

- It is not applicable for all businesses

What Is Direct Marketing ?

Direct marketing is a type of promotional campaign where companies directly communicate to a specific group of potential customers. Telemarketing, SMS marketing, email marketing, newspapers etc. are some examples of direct marketing. In this marketing strategy, companies try to attract customers by providing detail information about the product and services. It eliminates middlemen because producers directly make interaction with the customers.

Benefits Or Advantages Of Direct Marketing

The main advantages of direct marketing can be pointed out as follows:

1. Targeted Audience 

Direct marketing does not focus on large groups of audience. It tries to establish communication with potential customers and specific groups according to their interest and buying behavior. Direct contact with targeted audience increases that chance to succeed in the campaign.

2. It Avoids Middlemen

Direct marketing is business to customer (B2C) strategy that eliminates the role of middlemen and intermediaries such as distributors, dealers, wholesalers, retailers etc. in selling process.It sells products or services directly to the final consumers. It helps to save middlemen commission and shortens the selling process.

3. It Saves Costs

A company can establish direct communication with customers by using emails, telemarketing, internet etc. So, it saves marketing costs by lowering advertisements and promotional expenses. 

4. It Improves Profitability

Elimination of middlemen commission and less publicity and advertisement expenses can save significant amount of money. So, cost saving leads to increase in the profit of the firm.

5. Suitable For

Direct marketing is suitable for small and newly established companies with limited number of products. It is also suitable for those people who do not have time to visit retail stores for shopping purpose.

6. Effective Personal Interaction

It promotes personal interaction between the seller and buyer. It helps to gather information and feedback which helps to know the strength and weakness of the campaign. It helps the company to take appropriate steps to improve its operations.

7. Effective Measurement Of Performance

Direct marketing provides accurate feedback immediately to the seller. So, the effectiveness of marketing campaign can be measured by analyzing the result and feedback.

8. Helps To Increase Customer Loyalty

Because of personal touch and direct interaction, it helps to establish better relationship with customers. Personal connection between customer and company helps to improve customer loyalty.

Drawbacks Or Disadvantages Of Direct Marketing

The main disadvantages of direct marketing can be pointed out as follows:

1. Not Suitable For All Business

Direct marketing is not suitable to target large groups of customers. It is also not suitable for big business companies with strong brand value.

2. It Is Annoying And Intrustive Campaign

Most people feel annoying, irritating and intrustive because of unwanted telephone calls and emails received regularly from marketers. So, customers may dislike this marketing strategy.

        Also Read: 

Advantages And Disadvantages Of Digital Marketing

Advantages And Disadvantages Of Content Marketing

Advantages And Disadvantages Of Traditional Marketing

3. It Has Low Response Rate

Different marketing researches have proved that direct marketing has less conversion rate that other forms of marketing campaigns. It is difficult to identify potential customers and to collect data and information of an individual. If collected data lacks accuracy, then customer response rate becomes low and  campaign cannot be conducted properly. 

Pros:

- It only targets specific group of potential customers which helps to increase sales

- There will be a direct communication and personal touch with customers which eliminates middlemen

- It is a cost effective method of product promotion because it minimizes the advertising costs

- Earnings will be increased because of less marketing costs and elimination of middlemen

- It helps to maintain customer relation and increase customer loyalty

- Performance (success or failure) of the campaign can be easily measured

Cons:

- Some people may feel this marketing strategy irritating and annoying

- Although it lowers marketing expenses, it requires higher initial costs 

- Its response rate is lower than other forms of marketing

What Is Brand Extension ?

It is a marketing strategy in which producers launch new products or services in the market by using existing brand name. Brand extension helps the firms to introduce new products and influence customers because of  well-developed image of the core product and customer loyalty. There are some benefits as well as drawbacks of this marketing strategy which are discussed in this post.

Benefits Or Advantages Of Brand Extension

The main advantages of brand extension strategy can be described as follows:

1. Easy Market Entry

It is very difficult for new products to enter in the market because of cut throat competition. Brand extension helps the company to introduce new products because of the image and goodwill of the existing brand. 

2. It Increases The Chance Of Product Acceptance

As we know that good brand helps to increase the consumer trust and loyalty. Therefore, when company launches new product or service with existing brand name, it helps to increase the chance of product acceptance.

3. It Saves Costs

Brand extension eliminates costs required to develop new brand. It also minimizes advertising and promotional costs . So, it lowers marketing budget of the company.

4. Improve Brand Image 

Brand extension increases the visibility of the brand and helps to expand market by attracting new customers. So, it helps to increase image and goodwill of parent brand.

5. It Provides Premium Pricing Opportunity

Because of good reputation and image of the core product, company may charge premium price for its new product or service. So, company can earn more money from new product.

6. It Increases Profitability

It helps to widen the market of both core and newly launched product. It reduces marketing expenses related to advertising and promotional activities. Company may charge higher price for extended product. Market expansion, premium pricing and cost saving help to maximize the profitability of the firm.

Drawbacks Or Disadvantages Of Brand Extension

The main disadvantages of brand extension can be described as follows:

1. It May Damage The Reputation Of Core Brand

If new product fails to fulfill the expectation of customers, it loose the reliability of the core brand. Negative response of extended product may make huge damage to the image of core brand. 

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Advantages And Disadvantages Of Branding

2. High Chance Of Confusion

Different variety of products or services under same brand name may create confusion to the customers. This may adversely affect the sale of both core and new product.

3. It Discourages Innovation

If producers only give focus on brand extension and try to introduce new products with same brand to save costs and time, it discourages research, development and innovation in the field of business.

4. Less Likely To Succeed

Different business and marketing research have proved that it is not suitable for all types of products. So, wrong practice of brand extension may lead to cannibalization, customer frustration and product failure. 

Pros:

- Due to the goodwill of the core brand, new product can be easily launched in the market and accepted by the customers

- It minimizes the marketing expenses such as advertising cost, packaging costs, promotional costs etc.

- It helps to widen the market

- It helps to increase the image of the company which encourages the company to launch more products with same brand name in the future

- Because of less marketing costs, market expansion and premium pricing, it increases the earnings

Cons:

- It increases the possibility of cannibalization

- It discourages innovation and company may lose the opportunity to create new brand

- Image and goodwill of original brand may be damaged

What Is Branding ?

Branding is a process of giving unique name, logo, symbol, mascots, design etc. to  products or services which helps to differentiate them in the market. Branding provides identity to the products which helps to create customer awareness. Coca-cola, Sony, Adidas, Nike, Puma etc. are some examples of successful brands in the market.

Benefits Or Advantages Of Branding

Main advantages of branding products can be highlighted as follows:

1. Branding Creates Customer Awareness

The main benefit of branding is that it helps create awareness by providing identity and differentiation of products and services. Customers can easily recognize and distinguish branded products in the market. For example, people can easily distinguish Coca Cola or Pepsi from other soft drinks.

2. It Promotes Customer Satisfaction And Loyalty

Branding ensures stability in taste, price, quality , design etc. of the products. Producers also give focus on regular supply of spares and parts of products so the customers cannot be cheated by low quality counterfeit products. So, stability in the price and quality and regular supply of necessary parts helps to increase customer satisfaction which leads to customer loyalty.

3. Branding Helps To Increase Profitability

Branding increases the image and goodwill of the company. So, a firm may charge premium price for its products and services. For example, price of iPhone and Macbook (products of Apple company) are higher than the price of mobile phones and laptops of other companies. So, high selling prices increases the profitability of the company.

4. Barrier For New Competitors

Because of customer satisfaction, social prestige and goodwill of the branded products, new companies hesitate to enter the market. So, strong brand creates barrier and discourage new competitors.

5. Easy To Introduce New Products

Established brand helps the company to introduce new products in the market easily because of loyal customers and strong image of the company. For example, PepsiCo (producer of Pepsi and Miranda) introduced Mountain Dew easily in the market because of the goodwill and reputation of Pepsi. 

Drawbacks Or Disadvantages Of Branding

The main disadvantages of branding can be highlighted as follows:

1. Requirement Of Huge Investment

Company has to invest huge amount of money for research and development purpose. It requires money to advertise the product in different media such as print media, radio, television, internet etc. Proper publicity strategy and promotional activities should be conducted to attract potential customers which needs adequate money. So, branding involves huge investment that leads to increase in the price of the products.

       Also Read: 

Advantages And Disadvantages Of Brand Extension

2. It lacks Flexibility

Customers become loyal and pay premium price because of specific quality, design, taste etc. of the branded product. So, company cannot alter or modify design, quality or composition of the product.

3. It May Create Monopoly

As we know that strong brands discourage other competitors to enter in the market. New companies don not want to compete with established brands. So, it may create brand monopoly in the market.

4. Consumes More Time And Effort

Branding process requires more time and effort to establish the product in the market. It consumes both time and effort to make market research, to design product and to influence or attract potential customers with the help of different promotional tools like advertisement, publicity, public relations etc. 

Pros:

- It provides unique identity to the products and services which helps the customers to recognize them easily

- Because of the stability in the quality, it helps to increase brand image and customer loyalty

- Company may charge higher price for branded products which increases the profitability of the firm

- It discourages new competitors/companies to enter in the market

- Branded products can be easily distinguished from other similar types of products in the market

Cons:

- It is very expensive because it requires huge investment

- There is a chance of brand monopoly in the market

- Branding process consumes more time, effort and resources

- It lacks flexibility because it is difficult for the company to change the quality of the product