Ma2s

Personal Selling

noreply@blogger.com (Ashraf Diab) — Tue, 02 Mar 2010 19:48:00 +0000

Personal Selling. Personal selling occurs where an individual salesperson sells a product, service or solution to a client. Salespeople match the benefits of their offering to the specific needs of a client. Today, personal selling involves the development of longstanding client relationships. In comparison to other marketing communications tools such as advertising, personal selling tends to: Use fewer resources, pricing is often negotiated. Products tend to be fairly complex (e.g. financial services or new cars). There is some contact between buyer and seller after the sale so that an ongoing relationship is built. Client/prospects need specific information. The purchase tends to involve large sums of money. There are exceptions of course, but most personal selling takes place in this way. Personal selling involves a selling process that is summarised in the following Five Stage Personal Selling Process. The five stages are: 1. Prospecting. 2. Making first contact. 3. The sales call. 4. Objection handling. 5. Closing the sale. A Five Stage Personal Selling Process. Stage One - Prospecting. Prospecting is all about finding prospects, or potential new customers. Prospects should be 'qualified,' which means that they need to be assessed to see if there is business potential, otherwise you could be wasting your time. In order to qualify your prospects, one needs to: Plan a sales approach focused upon the needs of the customer. Determine which products or services best meet their needs. In order to save time, rank the prospects and leave out those that are least likely to buy. Stage Two - Making First Contact. This is the preparation that a salesperson goes through before they meet with the client, for example via e-mail, telephone or letter. Preparation will make a call more focused. Make sure that you are on time. Before meeting with the client, set some objectives for the sales call. What is the purpose of the call? What outcome is desirable before you leave? Make sure that you've done some homework before meeting your prospect. This will show that you are committed in the eyes of your customer. To save time, send some information before you visit. This will wet the prospect's appetite. Keep a set of samples at hand, and make sure that they are in very good condition. Within the first minute or two, state the purpose of your call so that time with the client is maximised, and also to demonstrate to the client that your are not wasting his or her time. Humour is fine, but try to be sincere and friendly. Stage Three - The Sales Call (or Sales Presentation). It is best to be enthusiastic about your product or service. If you are not excited about it, don't expect your prospect to be excited. Focus on the real benefits of the product or service to the specific needs of your client, rather than listing endless lists of features. Try to be relaxed during the call, and put your client at ease. Let the client do at least 80% of the talking. This will give you invaluable information on your client's needs. Remember to ask plenty of questions. Use open questions, e.g. TED's, and closed questions i.e. questions that will only give the answer 'yes' or the answer 'no.' This way you can dictate the direction of the conversation. Never be too afraid to ask for the business straight off. Stage Four - Objection Handling. Objection handling is the way in which salespeople tackle obstacles put in their way by clients. Some objections may prove too difficult to handle, and sometimes the client may just take a dislike to you (aka the hidden objection). Here are some approaches for overcoming objections: Firstly, try to anticipate them before they arise. 'Yes but' technique allows you to accept the objection and then to divert it. For example, a client may say that they do not like a particular colour, to which the salesperson counters 'Yes but X is also available in many other colours.' Ask 'why' the client feels the way that they do. 'Restate' the objection, and put it back into the client's lap. For example, the client may say, 'I don't like the taste of X,' to which the salesperson responds, 'You don't like the taste of X,' generating the response 'since I do not like garlic' from the client. The salesperson could suggest that X is no longer made with garlic to meet the client's needs. The sales person could also tactfully and respectfully contradict the client. Stage Five - Closing the Sale. This is a very important stage. Often salespeople will leave without ever successfully closing a deal. Therefore it is vital to learn the skills of closing. Just ask for the business! - 'Please may I take an order?' This really works well. Look for buying signals (i.e. body language or comments made by the client that they want to place an order). For example, asking about availability, asking for details such as discounts, or asking for you to go over something again to clarify. Just stop talking, and let the client say 'yes.' Again, this really works. The 'summary close' allows the salesperson to summarise everything that the client needs, based upon the discussions during the call. For example, 'You need product X in blue, by Friday, packaged accordingly, and delivered to your wife's office.' Then ask for the order. The 'alternative close' does not give the client the opportunity to say no, but forces them towards a yes. For example 'Do you want product X in blue or red?' Cheeky, but effective. So this is the Five Stage Personal Selling Process. Now have a go at it yourself by completing the lesson.

Bowman's Strategy Clock

noreply@blogger.com (Ashraf Diab) — Tue, 02 Mar 2010 19:45:00 +0000

Bowman's Strategy Clock The Strategy Clock: Bowman's Competitive Strategy Options The 'Strategy Clock' is based upon the work of Cliff Bowman (see C. Bowman and D. Faulkner 'Competitve and Corporate Strategy - Irwin - 1996). It's another suitable way to analyze a company's competitive position in comparison to the offerings of competitors. As with Porter's Generic Strategies, Bowman considers competitive advantage in relation to cost advantage or differentiation advantage. There are six core strategic options: Option one - low price/low added value. likely to be segment specific. Option two - low price. risk of price war and low margins/need to be a 'cost leader'. Option three - Hybrid. low cost base and reinvestment in low price and differentiation. Option four - Differentiation. (a)without a price premium: perceived added value by user, yielding market share benefits. (b)with a price premium: perceived added value sufficient to to bear price premium. Option five - focussed differentiation. perceived added value to a 'particular segment' warranting a premium price. Option six - increased price/standard. higher margins if competitors do not value follow/risk of losing market share. Option seven - increased price/low values. only feasible in a monopoly situation. Option eight - low value/standard price. loss of market share.

The Adoption Process

noreply@blogger.com (Ashraf Diab) — Tue, 02 Mar 2010 19:44:00 +0000

The Adoption Process. The Adoption Process (also known as the Diffusion of Innovation) is more than forty years old. It was first described by Bourne (1959), so it has stood the test of time and remained an important marketing tool ever since. It describes the behaviour of consumers as they purchase new products and services. The individual categories of innovator, early adoptor, early majority, late majority and laggards are described below. Innovators are the first to adopt and display behaviour that demonstrates that they likely to want to be ahead, and to be the first to own new products, well before the average consumer. They are often not taken seriously by their peers. The often buy products that do not make it through the early stages of the Product Life Cycle (PLC). Early adoptors are also quick to buy new products and services, and so are key opinion leaders with their neighbours and friends as they tend to be amongst the first to get hold of items or services. The early majority look to the innovators and early majority to see if a new product or idea works and begins to stand the test of time. They stand back and watch the experiences of others. Then there is a surge of mass purchases. The late majority tends to purchase the product later than the average person. They are slower to catch on to the popularity of new products, services, ideas, or solutions. There is still mass consumption, but it begins to end. Finally, laggards tend to very late to take on board new products and include those that never actually adopt at all. Here there is little to be made from these consumers. There are a number of examples of products that have gone through the adoption process. They include Ipods or DVD players (or even video players and digital watches). Initially only a small group of younger or informed, well off people bought into these products. Opinion leaders, or the early adoptors then buy the product and tend to be a target for marketing companies wishing to gain an early foot hold. The early majority are slightly ahead of the average, and follow. Then the late majority buy into the product, followed by any laggards. New adoption process or curves begin all the time. Who knows what will happen with solid state technology or Internet purchases of media?

Four Banding Alternatives

noreply@blogger.com (Ashraf Diab) — Tue, 02 Mar 2010 19:42:00 +0000

Exercise - Four Banding Alternatives Banana Computers Banana Computers is a well-established personal computer (PC) manufacturer. Designers and computer enthusiasts alike prefer the brand and it has a cult following all over the World. Banana is innovative and creative. Your Task. Apply the Four Banding Alternatives to the scenario of Banana Computers. How should they progress with their branding strategy?

The Marketing Environment

noreply@blogger.com (Ashraf Diab) — Tue, 02 Mar 2010 19:36:00 +0000

The Marketing Environment. What is the marketing environment? The marketing environment surrounds and impacts upon the organization. There are three key perspectives on the marketing environment, namely the 'macro-environment,' the 'micro-environment' and the 'internal environment'. The micro-environment This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence. The macro-environment This includes all factors that can influence and organization, but that are out of their direct control. A company does not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization). It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute products and new entrants. The wider environment is also ever changing, and the marketer needs to compensate for changes in culture, politics, economics and technology. The internal environment. All factors that are internal to the organization are known as the 'internal environment'. They are generally audited by applying the 'Five Ms' which are Men, Money, Machinery, Materials and Markets. The internal environment is as important for managing change as the external. As marketers we call the process of managing internal change 'internal marketing.' Essentially we use marketing approaches to aid communication and change management. The external environment can be audited in more detail using other approaches such as SWOT Analysis, Michael Porter's Five Forces Analysis or PEST Analysis.

Public Relations(PR) - Page Three

noreply@blogger.com (Ashraf Diab) — Tue, 02 Mar 2010 19:34:00 +0000

Public Relations(PR) - Page Three. Public relations as part of the marketing communications mix. Product placement in media. This is an interesting and original use of PR. There are very many examples in movies and TV programmes that 'place' products. For example, a car manufacturer places a car in a movie and the hero drives it, or wears a watch that is looked at by the villain displaying the time, underscored by the manufacturer's logo. Today, computer games include banners and posters during game-play as the action unfolds. Examples of product placement in games would include field sports with adverts placed alongside a pitch, or car racing games where you pass billboards displayed in a city. Lobbying government bodies. Lobbying is named after the 'lobby' area of the British Houses of Parliament where traditionally 'lobbying' would have occurred. Lobby in the past would have meant catching the eye of a Member of Parliament, in order to persuade him or her to take up a particular cause or argument. Today, lobbying firms are hired by organisations or individuals with a specific cause to promote. For example, a charity could lobby for a change in laws regarding pharmaceuticals or armaments. The charity would hire a lobbying firm to promote their cause with elected politicians. Press or media releases, conferences, contact and entertainment. Press or media releases, conferences, contact and entertainment are pivotal Public Relations strategies. In the past, the press were the original target (e.g. newspapers and magazines) but today the whole media industry forms the target (i.e. radio, websites, TV, New Media and so on). Media releases are drafted by a PR company, for example, to report financial information prior to the release of company reports. Media conferences are called often at short notice to inform the media directly on a current event that has just happened, or that is about to happen. Media contact includes interviews with key personnel, and could include speeches, presentations and speech writing by the PR company. Finally entertaining the press, or media, is undertaken when trying to gain as much media space as possible. This could be for a product launch or to promote an acquisition. Advertorials in newspapers, magazines or on websites. Advertorials are paid for advertisements that are designed to appear like copy (i.e. normal reported text). Many countries insist that advertorials do contain a line of text to explain that they are sponsored or placed by an advertiser. Advertorials are often used to imply that some ground breaking treatment or solution has been uncovered. Corporate promotional materials, websites, in-house magazines and customer magazines. The market for promotional materials is large. Promotional materials include items such as pens, balloons, mouse mats, and so on. They tend to carry a company's logo and contact details, and are another way to promote goodwill between and organisation and its publics. Websites are a vital marketing communications and public relations tool that can convey information to publics on how to contact an organisation, key personnel, products and services, corporate history, and financial reports, as well as any other targeted and planned information. In-house magazines are used for internal marketing, communication and change management from within the organisation. In-house magazines are targeted at internal publics. Conversely, customer magazines help organisations to communicate with external publics (mainly customers) on all sorts of topics such as good news stories, product launches, customer clubs and many other subjects.

Public Relations(PR) - Page Two

noreply@blogger.com (Ashraf Diab) — Tue, 02 Mar 2010 19:31:00 +0000

Public Relations(PR) - Page Two. Public relations as part of the marketing communications mix. Organising events. Corporate events are used to woo publics in both a formal and an informal manner. A formal corporate event could include a manufacturer inviting employees from all of its many distributors to visit its manufacturing plant for a training day. This has a direct business payoff. A more informal event could include a day at the races or a short-break abroad, where clients are wined and dined at the cost of a company, in order to generate goodwill. This has an indirect business payoff. Facility visits. Visits to a factory, such as a chocolate factory, or a facility, such as a nuclear power plant also generate a positive perception of an organisation. In the case of a factory visit, loyal customers or other interested parties can experience for themselves what is behind a well-known product. In the case of a nuclear power plant, concerned or misinformed publics have the chance to see for themselves what really occurs behind locked doors. Here the organisation has the chance to deal with a delicate topic in a planned proactive manner. Public buildings such as parliament buildings or churches would be included under facility visits. Publicity events and 'stunts.' Publicity events fall under the banner of guerrilla marketing. Here an organisation will take the opportunity to seize upon a particular moment to hijack public attention. Publicity events and stunts are practiced by both companies and private bodies (including pressure and political groups). A famous example of a publicity stunt was one conducted by Fathers For Justice (a British pressure group for divorced fathers), whereby individuals, dressed as Superheroes, invaded Buckingham Palace in London. Sponsorship and charitable donations. Sponsorship is where an organisation pays for their product or service to be associated with an activity or event. Organisations commonly sponsor sporting events and such as The Olympics, sporting stars and other celebrities, or medium, for example television programmes. The sponsors gain exposure, and also align their product or service with the attributes of the sport, celebrity or medium. Many companies (often those in profit!) make donations to charities and good causes. When donations are publicised, again the benefits generate goodwill for the organisation. It should be noted here that Microsoft's Bill Gates donates substantial amounts to good causes that are often not reported. This is true corporate philanthropy.

Análise SWOT

noreply@blogger.com (Ashraf Diab) — Tue, 02 Mar 2010 19:29:00 +0000

Análise SWOT Highly Brill Leisure Center (Centro Esportivo Highly Brill). .Resposta: Como você pod ever a resposta do Marketing Teacher (Professor de Marketing) não é completamente compatível a sua. Isso simplismente significa que os resultados da sua análise sao representados de uma forma diferente. Os pontos 2 e 10 estão em lugares diferentes. O ponto 2 depende se a máquina de fazer ondas representa uma consideravel vantagem sobe uma piscina convencional. O ponto 10 é um ponto forte interno e uma oportunidade externa.

Manor Grange Hotel

noreply@blogger.com (Ashraf Diab) — Tue, 02 Mar 2010 19:27:00 +0000

Manor Grange Hotel. Internet Advertising - Recommendations. (a) Online Promotion. Register for a Google Adwords account, by visiting the Google homepage, and clicking on Advertising Programmes. Cost out a campaign for keywords such as 'Inverness' - 'Scottish Salmon' - 'Birds Scotland' and any others that you consider important to potential visitors. You could also consider registering with Yahoo! Search Marketing, perhaps under Local Search - Scotland, Inverness. You could register your website with Commission Junction. Your site would be attractive to affiliate programme owners such as airlines, and travel companies. This could become a source of additional revenue. (b) Offline Promotion. You need to create a media release and send it to tourism magazines and institutions ( those that promote tourism businesses in Scotland). Keep a record of previous visitors, and mail shot them with news on the Hotel. Print your domain name on all printer material such as business cars, compliments slips, and brochures. Of course there will be many other ways to promote your business, which would be contained in a fuller marketing plan - such as rate reductions and special offers at times of low occupancy. The Hotel could also provide free guides on local birds and fishing spots.

Strategic Condition Matrix1

noreply@blogger.com (Ashraf Diab) — Tue, 02 Mar 2010 19:23:00 +0000

Strategic Condition Matrix A-This SBU is one of the biggest and oldest brands of lens photographical lenses in the World. It used to be the biggest supplier of lenses to both professional and amateur photographers, before the growth and current dominance of digital cameras. It needs to invest in a change programme that will downsize its business and give it a new and rejuvenated strategic direction. Ans: Weak/Aging - Manage for change if the brand can be rejuvenated, or with draw. B - This SBU manufactures high technology lasers that are used in the manufacture of specialist components for the production of aircraft. It has a number of unique patents as well as a 10 year contract with the World's largest aircraft manufacturer. Ans: Dominant/Growth - Act offensively and grow business. Be prepared to defend your position from competitors with rival solutions. C - This SBU is photocopier manufacturer that is currently under increasing attack from budget priced competitors that offer a very similar product and service package with a no frills brand. The SBU is finding it difficult to hold on to market share. Ans: Tenable/Mature - Try to recapture market share, but may ultimately be doomed so withdrawal may be necessary sooner rather than later. D - This SBU markets high quality optical equipment for use in laboratories, mainly in schools in Europe and the United States. Ans: Favourable/Mature - This SBU operates in a niche or narrow segment. It should target and defend educational sectors within its traditional markets. E - This SBU manufactures and promotes the World's most well know lenses brand. This designer lens is marketed through retails outlets throughout the World and tends to command a premium price not only for precision but also through its association with fashion and celebrity. Ans: Strong/Embryonic - Embryonic since it is based upon fashion which tends to have short Product Life Cycles (PLC), and so industries are never mature and always rejuvenating.

Primary - Marketing Research

noreply@blogger.com (Ashraf Diab) — Mon, 21 Dec 2009 09:47:00 +0000

primary - Marketing Research.
Primary marketing research is collected for the first time. It is original and collected for a specific purpose, or to solve a specific problem. It is expensive, and time consuming, but is more focused than secondary research. There are many ways to conduct primary research. We consider some of them:
1. Interviews
2. Mystery shopping
3. Focus groups
4. Projective techniques
5. Product tests
6. Diaries
7. Omnibus Studies
1.0 Interviews.
This is the technique most associated with marketing research. Interviews can be telephone, face-to-face, or over the Internet.
1.1 Telephone Interview.
Telephone ownership is very common in developed countries. It is ideal for collecting data from a geographically dispersed sample. The interviews tend to be very structured and tend to lack depth. Telephone interviews are cheaper to conduct than face-to-face interviews (on a per person basis).
Advantages of telephone interviews
Can be geographically spread
Can be set up and conducted relatively cheaply
Random samples can be selected
Cheaper than face-to-face interviews
Disadvantages of telephone interviews
Respondents can simply hang up
Interviews tend to be a lot shorter
Visual aids cannot be used
Researchers cannot behavior or body language
1.2 Face-to-face Interviews.
Face-to face interviews are conducted between a market researcher and a respondent. Data is collected on a survey. Some surveys are very rigid or 'structured' and use closed questions. Data is easily compared. Other face-to-face interviews are more 'in depth,' and depend upon more open forms of questioning. The research will probe and develop points of interest.
Advantages of face-to-face interviews
They allow more 'depth'
Physical prompts such as products and pictures can be used
Body language can emphasize responses
Respondents can be 'observed' at the same time
Disadvantages of face-to-face interviews
Interviews can be expensive
It can take a long period of time to arrange and conduct.
Some respondents will give biased responses when face-to-face with a researcher.
1.3 The Internet
The Internet can be used in a number of ways to collect primary data. Visitors to sites can be asked to complete electronic questionnaires. However responses will increase if an incentive is offered such as a free newsletter, or free membership. Other important data is collected when visitors sign up for membership.
Advantages of the Internet
Relatively inexpensive
Uses graphics and visual aids
Random samples can be selected
Visitors tend to be loyal to particular sites and are willing to give up time to complete the forms
Disadvantages of the Internet
Only surveys current, not potential customers.
Needs knowledge of software to set up questionnaires and methods of processing data
May deter visitors from your website.
1.4 Mail Survey
In many countries, the mail survey is the most appropriate way to gather primary data. Lists are collated, or purchased, and a predesigned questionnaire is mailed to a sample of respondents. Mail surveys do not tend to generate more than a 5-10% response rate. However, a second mailing to prompt or remind respondents tends to improve response rates. Mail surveys are less popular with the advent of technologies such as the Internet and telephones, especially call centers.
2.0 Mystery Shopping
Companies will set up mystery shopping campaigns on an organizations behalf. Often used in banking, retailing, travel, cafes and restaurants, and many other customer focused organizations, mystery shoppers will enter, posing as real customers. They collect data on customer service and the customer experience. Findings are reported back to the commissioning organization. There are many issues surrounding the ethics of such an approach to research.
3.0 Focus Groups.
Focus groups are made up from a number of selected respondents based together in the same room. Highly experienced researchers work with the focus group to gather in depth qualitative feedback. Groups tend to be made up from 10 to 18 participants. Discussion, opinion, and beliefs are encouraged, and the research will probe into specific areas that are of interest to the company commissioning the research.
Advantages of focus groups
Commissioning marketers often observe the group from behind a one-way screen
Visual aids and tangible products can be circulated and opinions taken
All participants and the research interact
Areas of specific interest can be covered in greater depth
Disadvantages of focus groups
Highly experienced researchers are needed. The are rare.
Complex to organize
Can be very expensive in comparison to other methods
4.0 Projective techniques.
Projective techniques are borrowed from the field of psychology. They will generate highly subjective qualitative data. There are many examples of such approaches including: Inkblot tests - look for images in a series of inkblots Cartoons - complete the 'bubbles' on a cartoon series Sentence or story completion Word association - depends on very quick (subconscious) responses to words Psychodrama - Imagine that you are a product and describe what it is like to be operated, warn, or used.
5.0 Product tests.
Product tests are often completed as part of the 'test' marketing process. Products are displayed in a mall of shopping center. Potential customers are asked to visit the store and their purchase behavior is observed. Observers will contemplate how the product is handled, how the packing is read, how much time the consumer spends with the product, and so on.
6.0 Diaries.
Diaries are used by a number of specially recruited consumers. They are asked to complete a diary that lists and records their purchasing behavior of a period of time (weeks, months, or years). It demands a substantial commitment on the part of the respondent. However, by collecting a series of diaries with a number of entries, the researcher has a reasonable picture of purchasing behavior.
7.0 Omnibus Studies.
An omnibus study is where an organisation purchases a single or a few questions on a 'hybrid' interview (either face-to-face or by telephone). The organisation will be one of many that simply want to a straightforward answer to a simple question. An omnibus survey could include questions from companies in sectors as diverse as heath care and tobacco. The research is far cheaper, and commit less time and effort than conducting your own research.
We have given a general introduction to marketing research. Marketing research is a huge topic area and has many processes, procedures, and terminologies that build upon the points above

Marketing Research

noreply@blogger.com (Ashraf Diab) — Mon, 21 Dec 2009 09:43:00 +0000

Secondary - Marketing Research.
Secondary marketing research, or desk research, already exist in one form or another. It is relatively cheap, and can be conducted quite quickly .However, it tends to have been collected for reasons other than for the problem or objective at hand. So it may be untargeted, and difficult to use to make comparisons (e.g. financial data gather on Australian pensions will be different to data on Italian pensions). There are a number of such sources available to the marketer, and the following list is by no means conclusive:
Trade associations
National and local press Industry magazines
National/international governments
Websites
Informal contacts
Trade directories
Published company accounts
Business libraries
Professional institutes and organisations
Omnibus surveys
Previously gathered marketing research
Census data
Public records
We have given a general introduction to marketing research. Marketing research is a huge topic area and has many processes, procedures, and terminologies that build upon the points above.

Secondary - Marketing Research.

noreply@blogger.com (Ashraf Diab) — Mon, 14 Dec 2009 09:14:00 +0000

PEST Analysis.

noreply@blogger.com (Ashraf Diab) — Mon, 14 Dec 2009 09:12:00 +0000

PEST Analysis.
What is PEST Analysis?
It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organization's marketing environment is made up of:
1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc.
2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc.
3. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural forces, and Technological forces. These are known as PEST factors.
Political Factors.
The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. You must consider issues such as:
1.How stable is the political environment?
2.Will government policy influence laws that regulate or tax your business?
3.What is the government's position on marketing ethics?
4. What is the government's policy on the economy?
5. Does the government have a view on culture and religion?
6. Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others?
Economic Factors.
Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing. You need to look at:
1. Interest rates.
2. The level of inflation Employment level per capita.
3. Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and so on.
Sociocultural Factors.
The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include:
1.What is the dominant religion?
2.What are attitudes to foreign products and services?
3.Does language impact upon the diffusion of products onto markets?
4.How much time do consumers have for leisure?
5.What are the roles of men and women within society?
6.How long are the population living? Are the older generations wealthy?
7.Do the population have a strong/weak opinion on green issues?
Technological Factors.
Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points:
1. Does technology allow for products and services to be made more cheaply and to a better standard of quality?
2.Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc?
3.How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc?
4.Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), etc?

Shell Directional Policy Matrix

noreply@blogger.com (Ashraf Diab) — Mon, 14 Dec 2009 09:09:00 +0000

Shell Directional Policy Matrix
A Nine Celled directional Policy Matrix
The Shell Directional Policy Matrix is another refinement upon the Boston Matrix. Along the horizontal axis are prospects for sector profitability, and along the vertical axis is a company's competitive capability. As with the GE Business Screen the location of a Strategic Business Unit (SBU) in any cell of the matrix implies different strategic decisions. However decisions often span options and in practice the zones are an irregular shape and do not tend to be accommodated by box shapes. Instead they blend into each other.
Each of the zones is described as follows:
Leader - major resources are focused upon the SBU.
Try harder - could be vulnerable over a longer period of time, but fine for now.
Double or quit - gamble on potential major SBU's for the future.
Growth - grow the market by focusing just enough resources here.
Custodial - just like a cash cow, milk it and do not commit any more resources.
Cash Generator - Even more like a cash cow, milk here for expansion elsewhere.
Phased withdrawal - move cash to SBU's with greater potential.
Divest - liquidate or move these assets on a fast as you can.

Value Chain Analysis.

noreply@blogger.com (Ashraf Diab) — Mon, 14 Dec 2009 09:08:00 +0000

Value Chain Analysis.
The value chain is a systematic approach to examining the development of competitive advantage. It was created by M. E. Porter in his book, Competitive Advantage (1980). The chain consists of a series of activities that create and build value. They culminate in the total value delivered by an organisation. The 'margin' depicted in the diagram is the same as added value. The organisation is split into 'primary activities' and 'support activities.'
Primary Activities.
Inbound Logistics.
Here goods are received from a company's suppliers. They are stored until they are needed on the production/assembly line. Goods are moved around the organisation.
Operations.
This is where goods are manufactured or assembled. Individual operations could include room service in an hotel, packing of books/videos/games by an online retailer, or the final tune for a new car's engine.
Outbound Logistics.
The goods are now finished, and they need to be sent along the supply chain to wholesalers, retailers or the final consumer.
Marketing and Sales.
In true customer orientated fashion, at this stage the organisation prepares the offering to meet the needs of targeted customers. This area focuses strongly upon marketing communications and the promotions mix.
Service.
This includes all areas of service such as installation, after-sales service, complaints handling, training and so on.
Support Activities.
Procurement.
This function is responsible for all purchasing of goods, services and materials. The aim is to secure the lowest possible price for purchases of the highest possible quality. They will be responsible for outsourcing (components or operations that would normally be done in-house are done by other organisations), and ePurchasing (using IT and web-based technologies to achieve procurement aims).
Technology Development.
Technology is an important source of competitive advantage. Companies need to innovate to reduce costs and to protect and sustain competitive advantage. This could include production technology, Internet marketing activities, lean manufacturing, Customer Relationship Management (CRM), and many other technological developments.
Human Resource Management (HRM).
Employees are an expensive and vital resource. An organisation would manage recruitment and s election, training and development, and rewards and remuneration. The mission and objectives of the organisation would be driving force behind the HRM strategy.
Firm Infrastructure.
This activity includes and is driven by corporate or strategic planning. It includes the Management Information System (MIS), and other mechanisms for planning and control such as the accounting department

Targeting.

noreply@blogger.com (Ashraf Diab) — Mon, 14 Dec 2009 09:06:00 +0000

Targeting.
Part of STP - Segment-Target-Postion.
Targeting is the second stage of the SEGMENT "Target" POSITION (STP) process. After the market has been separated into its segments, the marketer will select a segment or series of segments and 'target' it/them. Resources and effort will be targeted at the
The first is the single segment with a single product. In other word, the marketer targets a single product offering at a single segment in a market with many segments. For example, British Airway's Concorde is a high value product aimed specifically at business people and tourists willing to pay more for speed.
Secondly the marketer could ignore the differences in the segments, and choose to aim a single product at all segments i.e. the whole market. This is typical in 'mass marketing' or where differentiation is less important than cost. An example of this is the approach taken by budget airlines such as Go/
Finally there is a multi-segment approach. Here a marketer will target a variety of different segments with a series of differentiated products. This is typical in the motor industry. Here there are a variety of products such as diesel, four-wheel-drive, sports saloons, and so on.

Competitor Research for eMarketing.

noreply@blogger.com (Ashraf Diab) — Mon, 14 Dec 2009 09:04:00 +0000

Competitor Research for eMarketing.

Where are we now? (External Perspective).

As you plan for eMarketing and during the plan's implementation, one needs to pay careful attention to the activities of competitors. So competitor research for eMarketing is essential when attempting to answer the question where are we now ( external perspective)? There are a number of approaches that can be employed, with the emphasis on each approach shifting depending upon the nature of our eBusiness and market. Here are some key tools of competitor research for eMarketing:

Use search engines.

General topics such as Google, Yahoo!, and MSN.

Type names of competitors.

Type industry, product or term.

Search 'down' into a directory structure e.g Yahoo!

Search a competitor's web site.

Product information, press releases, job opportunities.

Pricing information.

Distribution information such as where to buy.

(So publish only what you'd give away at a trade show!)

Hunt for trade associations.

Search for personal pages or 'Blogs.'

Different perspective e.g fans, ex-employees.

E.g. www.blogger.com, www.myspace.com, www.youtube.com

Ask your target market.

Send questions to named personnel, newsgroups, personal pages, mailing lists.

Conduct a survey using.

Buy secondary reports e.g. Datamonitor, Mintel.

Newsgroups and post queries.

Newsgroups on bulleting boards or forums.

Deja.com (Google).

Read online financial information.

Research public companies.

III.co.uk Ample UK.

FT.com UK.

Read online competitive information.

E.g. Hoovers.com - Paid for, in US.

Study demographic reports.

Statistics.gov.uk/census in UK.

Census.gov in US.

Original source material.

Business Source Elite, Newspapers, Kelly's, Kompass.

Monitor special interest material.

E.g Marketing Week (BSE) , Campaign (BSE), Marketing (BSE).

Use a professional researcher.

Balanced Scorecard

noreply@blogger.com (Ashraf Diab) — Sun, 13 Dec 2009 05:03:00 +0000

Balanced Scorecard
The Balanced Scorecard is an approach that can be used by strategic marketing managers to control, and keep track of, key performance indicators. In fact the scorecard itself is designed to be wholly strategic since it contains long-term outcomes and drivers of success. There are four zones in a balanced scorecard namely financial, customers, business processes (or simply processes), and learning and growth. Each measure is part of a longer chain of cause and effect, and all of the measures eventually lead to outcomes (read on and this will become clearer). So the scorecard is 'balanced' in that outcomes are in balance with each other.
The benefit of the scorecard is that is overcomes short-term quick fixes, and gives the strategic marketing manager a straightforward overview of the organisation. In fact, a scorecard should ideally fit onto a single sheet of paper. In fact Kaplan and Norton (1992), the originators of Balanced Scorecard, describe it as the dials in an airplane cockpit.
Learning and Growth.
Learning and Growth deals with measures of corporate success in relation to how it learns as it develops over time. So if the company makes mistakes in any way, then it must learn from them and there must be mechanisms in place to make sure that happens. Growth also includes the way in which it generates leaders for the future and equips employees with the necessary skills that will ultimately sustain its business. Examples include skills sets, employee relations and satisfaction, and staff competences.
Internal Business Processes.
Internal business processes include all operations within the organisation. The measures would cover whether or not value is being delivered to target segments, and the value chain is tracked. Innovation and new product development would also be measured. Examples of internal business processes include Information Technology, manufacturing, marketing operations such as customer service, procurement and quality processes.
Customers.
As marketers we are very concerned with our customers. We need to make sure that they are satisfied with every aspect of their experience with our organisation. We need to make sure that we not only recruit more new customers, but that we also retain them and extend new products and services to them. We also need to make sure that we are meeting the needs of our target segments. So here, examples of customer measures include customer retention and recruitment, their satisfaction and so on.
Financial.
Financial measures are vitally important for any business. A note of caution here, since traditional measures of financial success such as Return On Investment (ROI), and made secondary to 'shareholder value.' Shareholder value is the natural measure of success, and so it is prioritised. Information on customers, markets and technology is far more widely available today, so don't bogged down with old fashioned financial measures.
Resources, individuals and teams within a business are then aligned with the scorecard objectives, measures, targets and initiatives for each of the four areas of measurement.

Traffic Lights

noreply@blogger.com (Ashraf Diab) — Sun, 13 Dec 2009 05:02:00 +0000

Traffic Lights
A tool for creative marketing.
As with many of the tools and techniques considered on Marketing Teacher, traffic lights is a simple and effective approach. It's just like the traffic lights that are seen in millions of streets throughout the world, and is a basic metaphor for red, amber and green. Red means 'let's STOP it,' Amber means 'PROCEED WITH CAUTION, but make some improvements,' and Green means 'Go' or 'Let's carry on with this activity.'
.Traffic lights is a creative marketing tool that can be used in a number of ways.
You could conduct a personal traffic lights exercise based upon your own personal or professional development.
The exercise can be run at any stage of the marketing planning or creative process. So you could run it as you begin marketing, during a marketing campaign, and at the end of a marketing programme as you review or control your marketing activities.
Traffic lights has a number of benefits to marketing managers:
It encourages a creative approach to marketing
Traffic lights is simple to use
Traffic lights is quick to learn
Traffic lights cross cultures, since most countries use this common approach to traffic control.
Traffic lights transcend interdepartmental and disciplinary differences so that it is a common platform for decision-making.
The starting point is to decide upon an activity on which to base your traffic lights exercise. Some examples include:
How do we improve our marketing planning?
How do we make our marketing communications activities more effective?
In what ways could eMarketing be made more efficient?
How could I become a better marketing manager?
How could I improve my grades?
Traffic Lights, Example - Serendipity
So let's consider a company called Serendipity that markets Ski Wear. Serendipity conducted a traffic lights exercise upon its core marketing activities. Marketing managers and interested individuals from purchasing, sales management, finance and R&D met in a training room, and recorded their views under the headings red-amber-green. The results are as follows:
Red - STOP
Get rid of any distributors that favour competitor brands over our own.
Withdraw product lines that make a loss.
Remove our branding from any none-ski wear clothing.
Stop sponsoring amateur or low ranking skiers, and enhance the exclusivity of our brand.
Amber - PROCEED WITH CAUTION, and make some improvements.
Reduce the number of distributors that have Serendipity agency agreements. Start backing our proactive winners that really wish to endorse our brand and make it central to their business.
Promote or reposition products that are mature.
Green - Go or Let's carry on with this activity.
Reward our best distributors, and develop as the bases for long-terms relationships.
Develop and enhance products that are highly profitable.
Let's continue to sponsor top skiers that enhance our brand values.

Brand Strategy and Brand Management

noreply@blogger.com (Ashraf Diab) — Sun, 13 Dec 2009 05:01:00 +0000

Brand Strategy and Brand Management
Offers members the opportunity to exchange ideas and knowledge within the community of those interested in branding.
Internet Marketing/eCommerce
Serves members who have an interest in the issues and concerns impacting online marketing and e-commerce.
Higher Education
Represents members interested in the marketing of today’s universities and colleges.
Marketing Research
Represents members who have an interest in the practice and study of Marketing Research.
Healthcare Marketing
Offers members an opportunity to exchange ideas and knowledge within the community of those interested in Healthcare Marketing.
Business-to-Business
Targeted to members who have an interest in the practice, study and teaching of business-to-business marketing.
Marketing Strategy and Planning
Supports members interested in exchanging, discussing and sharing ideas and practices of marketing strategy and planning.
Services Marketing
The mission of SERVSIG is to be the best full-service system for keeping in touch with the people, events, and knowledge of services marketing and management.
Nonprofit Marketing
Offers members an opportunity to exchange ideas and knowledge within the community of those interested in NonProfit Marketing.

Pricing Strategies.

noreply@blogger.com (Ashraf Diab) — Wed, 09 Dec 2009 17:51:00 +0000

Pricing Strategies.
There are many ways to price a product. Let's have a look at some of them and try to understand the best policy/strategy in various situations. See also eMarketing Price.
Premium Pricing.
Use a high price where there is a uniqueness about the product or service. This approach is used where a a substantial competitive advantage exists. Such high prices are charge for luxuries such as Cunard Cruises, Savoy Hotel rooms, and Concorde flights.
Penetration Pricing.
The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased. This approach was used by France Telecom and Sky TV.
Economy Pricing.
This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Supermarkets often have economy brands for soups, spaghetti, etc.
Price Skimming.
Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply. Manufacturers of digital watches used a skimming approach in the 1970s. Once other manufacturers were tempted into the market and the watches were produced at a lower unit cost, other marketing strategies and pricing approaches are implemented.
Premium pricing, penetration pricing, economy pricing, and price skimming are the four main pricing policies/strategies. They form the bases for the exercise. However there are other important approaches to pricing.
Psychological Pricing.
This approach is used when the marketer wants the consumer to respond on an emotional, rather than rational basis. For example 'price point perspective' 99 cents not one dollar.
Product Line Pricing.
Where there is a range of product or services the pricing reflect the benefits of parts of the range. For example car washes. Basic wash could be $2, wash and wax $4, and the whole package $6.
Optional Product Pricing.
Companies will attempt to increase the amount customer spend once they start to buy. Optional 'extras' increase the overall price of the product or service. For example airlines will charge for optional extras such as guaranteeing a window seat or reserving a row of seats next to each other.
Captive Product Pricing
Where products have complements, companies will charge a premium price where the consumer is captured. For example a razor manufacturer will charge a low price and recoup its margin (and more) from the sale of the only design of blades which fit the razor.
Product Bundle Pricing.
Here sellers combine several products in the same package. This also serves to move old stock. Videos and CDs are often sold using the bundle approach.
Promotional Pricing.
Pricing to promote a product is a very common application. There are many examples of promotional pricing including approaches such as BOGOF (Buy One Get One Free).
Geographical Pricing.
Geographical pricing is evident where there are variations in price in different parts of the world. For example rarity value, or where shipping costs increase price.
Value Pricing.
This approach is used where external factors such as recession or increased competition force companies to provide 'value' products and services to retain sales e.g. value meals at McDonalds.

distribution channel

noreply@blogger.com (Ashraf Diab) — Wed, 09 Dec 2009 17:48:00 +0000

Place, distribution, channel, or intermediary.
A channel of distribution comprises a set of institutions which perform all of the activities utilised to move a product and its title from production to consumption.
Bucklin - Theory of Distribution Channel Structure (1966)
Another element of Neil H.Borden's Marketing Mix is Place. Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer.
There are six basic 'channel' decisions:
Do we use direct or indirect channels? (e.g. 'direct' to a consumer, 'indirect' via a wholesaler).
Single or multiple channels.
Cumulative length of the multiple channels.
Types of intermediary (see later).
Number of intermediaries at each level (e.g. how many retailers in Southern Spain).
Which companies as intermediaries to avoid 'intrachannel conflict' (i.e. infighting between local distributors).
Selection Consideration - how do we decide upon a distributor?
Market segment - the distributor must be familiar with your target consumer and segment.
Changes during the product life cycle - different channels can be exploited at different points in the PLC e.g. Foldaway scooters are now available everywhere. Once they were sold via a few specific stores.
Producer - distributor fit - Is there a match between their polices, strategies, image, and yours? Look for 'synergy'.
Qualification assessment - establish the experience and track record of your intermediary.
How much training and support will your distributor require?
Types of Channel Intermediaries.
There are many types of intermediaries such as wholesalers, agents, retailers, the Internet, overseas distributors, direct marketing (from manufacturer to user without an intermediary), and many others. The main modes of distribution will be looked at in more detail.
1. Channel Intermediaries - Wholesalers
They break down 'bulk' into smaller packages for resale by a retailer.
They buy from producers and resell to retailers. They take ownership or 'title' to goods whereas agents do not (see below).
They provide storage facilities. For example, cheese manufacturers seldom wait for their product to mature. They sell on to a wholesaler that will store it and eventually resell to a retailer.
Wholesalers offer reduce the physical contact cost between the producer and consumer e.g. customer service costs, or sales force costs.
A wholesaler will often take on the some of the marketing responsibilities. Many produce their own brochures and use their own telesales operations.
2. Channel Intermediaries - Agents
Agents are mainly used in international markets.
An agent will typically secure an order for a producer and will take a commission. They do not tend to take title to the goods. This means that capital is not tied up in goods. However, a 'stockist agent' will hold consignment stock (i.e. will store the stock, but the title will remain with the producer. This approach is used where goods need to get into a market soon after the order is placed e.g. foodstuffs).
Agents can be very expensive to train. They are difficult to keep control of due to the physical distances involved. They are difficult to motivate.
3. Channel Intermediaries - Retailers
Retailers will have a much stronger personal relationship with the consumer.
The retailer will hold several other brands and products. A consumer will expect to be exposed to many products.
Retailers will often offer credit to the customer e.g. electrical wholesalers, or travel agents.
Products and services are promoted and merchandised by the retailer.
The retailer will give the final selling price to the product.
Retailers often have a strong 'brand' themselves e.g. Ross and Wall-Mart in the USA, and Alisuper, Modelo, and Jumbo in Portugal.
4. Channel Intermediaries - Internet
The Internet has a geographically disperse market.
The main benefit of the Internet is that niche products reach a wider audience e.g. Scottish Salmon direct from an Inverness fishery.
There are low barriers low barriers to entry as set up costs are low.
Use e-commerce technology (for payment, shopping software, etc)
There is a paradigm shift in commerce and consumption which benefits distribution via the Internet

Promotion.

noreply@blogger.com (Ashraf Diab) — Tue, 24 Nov 2009 06:19:00 +0000

Another one of the 4P's is 'promotion'. This includes all of the tools available to the marketer for 'marketing communication'. As with Neil H.Borden's marketing mix, marketing communications has its own 'promotions mix.' Think of it like a cake mix, the basic ingredients are always the same. However if you vary the amounts of one of the ingredients, the final outcome is different. It is the same with promotions. You can 'integrate' different aspects of the promotions mix to deliver a unique campaign. The elements of the promotions mix are:
Personal Selling.
Sales Promotion.
Public Relations.
Direct Mail.
Trade Fairs and Exhibitions.
Advertising.
Sponsorship.
The elements of the promotions mix are integrated to form a coherent campaign. As with all forms of communication. The message from the marketer follows the 'communications process' as illustrated above. For example, a radio advert is made for a car manufacturer. The car manufacturer (sender) pays for a specific advert with contains a message specific to a target audience (encoding). It is transmitted during a set of commercials from a radio station (Message / media).
The message is decoded by a car radio (decoding) and the target consumer interprets the message (receiver). He or she might visit a dealership or seek further information from a web site (Response). The consumer might buy a car or express an interest or dislike (feedback). This information will inform future elements of an integrated promotional campaign. Perhaps a direct mail campaign would push the consumer to the point of purchase. Noise represent the thousand of marketing communications that a consumer is exposed to everyday, all competing for attention.
The Promotions Mix.
Let us look at the individual components of the promotions mix in more detail. Remember all of the elements are 'integrated' to form a specific communications campaign.
1. Personal Selling.
Personal Selling is an effective way to manage personal customer relationships. The sales person acts on behalf of the organization. They tend to be well trained in the approaches and techniques of personal selling. However sales people are very expensive and should only be used where there is a genuine return on investment. For example salesmen are often used to sell cars or home improvements where the margin is high.
2. Sales Promotion.
Sales promotion tend to be thought of as being all promotions apart from advertising, personal selling, and public relations. For example the BOGOF promotion, or Buy One Get One Free. Others include couponing, money-off promotions, competitions, free accessories (such as free blades with a new razor), introductory offers (such as buy digital TV and get free installation), and so on. Each sales promotion should be carefully costed and compared with the next best alternative.
3. Public Relations (PR).
Public Relations is defined as 'the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization and its publics' (Institute of Public Relations). It is relatively cheap, but certainly not cheap. Successful strategies tend to be long-term and plan for all eventualities. All airlines exploit PR; just watch what happens when there is a disaster. The pre-planned PR machine clicks in very quickly with a very effective rehearsed plan.
4. Direct Mail.
Direct mail is very highly focussed upon targeting consumers based upon a database. As with all marketing, the potential consumer is 'defined' based upon a series of attributes and similarities. Creative agencies work with marketers to design a highly focussed communication in the form of a mailing. The mail is sent out to the potential consumers and responses are carefully monitored. For example, if you are marketing medical text books, you would use a database of doctors' surgeries as the basis of your mail shot.
5. Trade Fairs and Exhibitions.
Such approaches are very good for making new contacts and renewing old ones. Companies will seldom sell much at such events. The purpose is to increase awareness and to encourage trial. They offer the opportunity for companies to meet with both the trade and the consumer. Expo has recently finish in Germany with the next one planned for Japan in 2005, despite a recent decline in interest in such events.
6. Advertising.
Advertising is a 'paid for' communication. It is used to develop attitudes, create awareness, and transmit information in order to gain a response from the target market. There are many advertising 'media' such as newspapers (local, national, free, trade), magazines and journals, television (local, national, terrestrial, satellite) cinema, outdoor advertising (such as posters, bus sides).
7. Sponsorship.
Sponsorship is where an organization pays to be associated with a particular event, cause or image. Companies will sponsor sports events such as the Olympics or Formula One. The attributes of the event are then associated with the sponsoring organization.
The elements of the promotional mix are then integrated to form a unique, but coherent campaign.

Three Levels of a Product.

noreply@blogger.com (Ashraf Diab) — Tue, 24 Nov 2009 06:18:00 +0000

For many a product is simply the tangible, phsysical entity that they may be buying or selling. You buy a new car and that's the product - simple! Or maybe not. When you buy a car, is the product more complex than you first thought? In order to actively explore the nature of a product further, lets consider it as three different products - the CORE product, the ACTUAL product, and finally the AUGMENTED product.
These are known as the 'Three Levels of a Product.' So what is the difference between the three products, or more precisely 'levels?'
The CORE product is NOT the tangible, physical product. You can't touch it. That's because the core product is the BENEFIT of the product that makes it valuable to you. So with the car example, the benefit is convenience i.e. the ease at which you can go where you like, when you want to. Another core benefit is speed since you can travel around relatively quickly.
The ACTUAL product is the tangible, physical product. You can get some use out of it. Again with the car example, it is the vehicle that you test drive, buy and then collect.
The AUGMENTED product is the non-physical part of the product. It usually consists of lots of added value, for which you may or may not pay a premium. So when you buy a car, part of the augmented product would be the warranty, the customer service support offered by the car's manufacture, and any after-sales service.
Another marketing tool for evaluating PRODUCT is the Product Life Cycle (PLC).