Marketing Insight

The Ten Commandments Of Global Branding

Far many companies, global landing has beeal both a Messing and a curse. A y oba brand,ng program can faner marketing costs, realize greater economies of scafe in production, and ptoflde a long-term Source ol growth. If not designed and implemented properly, it may ignore important tl iterances in consumer tshavior and or the competitive environment in the individual couniries These suggestions can help a company retain many of Ihe attvanlages ol global branding vrtiile minimis ng the potential...

Modifying Channel Arrangements

A producer must periodically review And modify its channel arrangements. Modification becomes neeessarv when the distribution channel is not working as planned consumer buying patterns change, the market expands, new competition arises, innovative distribution channels emerge, and the product moves into later stages in the product life cycle. Consider Apple. To combat Its lowly 3.4 percent share d1 the U.S. personal computer market. Apple has opened more man 75 retail locations since 2001. The...

New Consumer Capabilities

Ihe digiiai fflwMta lias placed a whole new set ol capabilities in ttie nan of constiroeis and businesses. Consider what consumers haw today that they didn't have yesterday A substantial increase in buying power- Buyers today are caty a cSick away Iroai coir-paiing competitor puces and product atiri& uies. TJiey can pet answers on ihe Internet In a matter of seconds. They don't need lo drive lo stores, pa rk. wait on iine, and hold discussions vrilh salespeople. Consumers can even name Ihe...

Select the Communications Channels

Selecting efficient channels to carry the message becomes more dilficult as channels of communication become more fragmented and cluttered. Think of the challenges in the phatHiia-ceutical industrv Over63jOQO U.S. sales reps detail doctors every day hoping to get live minutes of a busy doctor's time. Some 40 percent of calls do not even result in seeing the doctor, which makes sales calling extremely expensive. The industry has hat to expand its battery of communications channels to include ads...

Devising a Branding Strategy

The branding strategy for a firm reflecis iben timber and nam re of common and distinctive brand elements applied 40 the different products sold by the firm. In oilier words,, devising a branding strategy involves deciding the nature of new and existing brand elements to be applied to new and Existing products. The decision as to how to brand new products, 'is especially critical. When a firm introduces a n jw product, it lias three main choices I, It can develop new bland elements for the new...

Capturing Marketing Insights Ulw

Liiitlget is based tin the sales forecast and ihe need to avoid excessive ri k. Sales budgets are generally slightly lower than the sales fn re cast. COMPANY SALES POTENTIAL C ompany sales potential is the sales limit approached by company demand as company marketing effort increases relative io thai of com petitors, tu.1 absolute limit OF company demand is. of course, die market potential. The two would be equal 0t the company got mo percent of the market, In most eases, company sales...

Select Comfort Corporation

A mattress is a mattress, or is it We have heard of waterbeds. Now Select Comfort offers an air bed ' ine mattress is air-inflated, and. sleepers, can adus Firmness by changing the air level. TVrt siceoers can even call for dillerear degrees of firmness on itieir respective sides oF the mattress. market ihe mattresses Select Comfort, headquartered in Minneapolis, has pat together a strong combination of channels and promotion initiatives 300 retail stores where prospects can lake 3 Test Rest on...

Major Marketing Weaknesses

Deadly Sin The company's marketing planning process is deficient. The marveling plan ipima does no have lhe right components, there is no way to estimate the linancia 1 indications 0 dilterent strategies, there is 110 contingency planning Sotutions Establish a standard formal including situational analysis, SWOT, major issues, objects, slraiegy. ladies, budgets, ana controls ask marketers what changes Uicy would make if the were given 20 perCent more or less Itudgei ran an annual marketing...

Analyzing Customers Desired Service Output Levels

Fn designing the marketing channel. the marketer must understand the service output levels desired bv targel customers. Channels produce five service outputs , I.ol size - The number of units the channel permits a typical customer in purchase on Orte occasion, fn buying ears for its fleet. Hertz prefers a channel from which it can buy a large lot si .c a household wants a channel that permits buying a lot Size of one. 2. Wailing and delivery time - I he average time Customers of that channel...

Channel Levels

The producer and (he final customer are part of every channel. We will use the number of intermediary levels to desiguale the length of a channel. l igure 15.3(a) il strales several cons u m cr-goods marketing ch an neis of di fferen t fcngt hi A zero-level channel falsn called t direct-marketing channel) Consists of a matiulac-itirer selling directly to the final customer. The major examples are door*to-door sales, home parties, mall order, telemarketing, TV selling.

Principles oi Personal Selling

It has spawned a large literature and many principles, infective salespeople have more than ifiStinct they are rained in methods of analysis and customer management. Today's companies sfiend hundreds of millions of dollars each year lo train salespeople in heart of selling. Sales training approaches try to transform a salesperson from a passive order taker into an active order getter who engages in customer problem solving. An active order getter learns how...

Initiating and Responding to Price Changes

Companies often face situations where they may need to cut or raise prices. In tiating Price Cuts Several circumslEtnces might lead a firm m cut prices. One is excess plant capacity The firm needs additional business and cannot generate it through increased sales cflott, product improvement, or other measures. H may resort to aggressive pricing, but in initiating a price cut, the company may iriggera price war. Companies sometimes initiate price cuts in a drive to dominate he market ffirough...

Arizona Iced Tea

Arizona iced Tea marketer Ferolito, Vultaggio, Sons has gained success by la king a rather straightforward drinK tea ana putting it into unusual bodies wild elaborate designs. The wide-mouthed, long-necked bottles have been trendsetters in the New Age beverage category, and customers often hoy Ihe tea just for the botue. -Because consumers are known to hang on to their empties or coavert tftertt into lamps and olher house-herd oDjeets. the company uses unique Cottle shapes for its line...

The Benefits of Vertical Coordination

Much research 'ms advocated riMier vcJiicfll cnnrdinatioti between buying parUiers and sellers so that they transcend men- transactions to engage in activities that create more value foi both partiri. Ituildihgiiust between parties is often seen as one prerequisite 10 bftthhy long-term relntionships.'Maikeiing Insight Hslahlishing Corporate 1'rnst an lt i Credibility Identifies some key dimensions pit hose concepts. Consider the inntual hcnCftts from i he following attBri ement. MOTOMAM IMC....

Systems Buying and Selling

Many business buyers prefer to buy a total solution to a problem from one seller. Called systems buying, this practice originated with government purchases of major weapons and , communications systems. The government would solicit bids from prime contractors, who assembled the package or system. The contractor who was awarded the contract would be responsible for bidding oui and assembling the system's subcomponents from see en itl-tier contractors. The prime contractor would thus provide a...

Order Routine Specification

After selecting suppliers, the buyer negotiates the final order, lis ting the technical specifications, the quantity needed, lite expected time of delivery, return policies, warranties, and so on. Many Industrial buyers lease heavy equipment like machinery and irucks, The lessee gains a number of advantages conserving capital, gelling the latest products, receiving better service, and some tax advantages. The lessor often ends up wiili a larger net income and the chance to sell to customers who...

Bennett And Wilkinson Estimating Demand Curves

These are difficult to estimate, ht emphasizing current performance, the company may sacrifice long-run performance by ignoring the effects ofqLhcr marketing-mix variables, com pet i-tnrs' reactions, and legal restraints on price, KE hake Some companies want lo believe that a higher sales volume will lead to lower unit costs and higher long-run profit. They set the Lowest price, assuming the market is price sensitive. Tesa i Instruments (Ti) has practiced ill is market-penetration pricing. TI...

The Ten Rules Of Radical Marketing

L wir bem flMsW MM& iriq, Hili and Glenn ftiltal ty Out a set ol guidelines that can help finer companies emulate me radical 1. TtW CEO must own We marketing (unction, CEOs c-1 radical marketers never delegate matting rawrisiijiiity. 2. The marketing department must start small and Hal and stay smalt and flat. C 0s of radical ittarfcelas must riot allow layers of management to grew beiwieea lliem and Ihe market. 3. Get face-to-face with the people who matter most Ihe customers, Radica...

Example Of Geito

F.q n'.iiai ny-Favoraljiiiiy Analysis Itoclcfjiiiy cfcal .o sUiiegy Tiiis ad for Titei, a house fiuti cfitftuct. foetm on wohtem-SQluiioo Tilen is called Trie Mold Killer11'1. 2. HiyuhIAtt'iiretwss - Ability to identify recognizc or recall the brand within lie category, in sufficient tic ail to mate a purchase. Recognition is easier to achieve than recall con sinners are more likely to recognize Stouffcr's distinctive orange packages ilinn recall the lira rid ir asked in iliink of a brand of...

Product Line Length

Company objectives influence product-line length, tine objective is lo create a product line to induce Lipselling 'I'bus General Motors would like to move customers up fro in the Chevrolet to the lluick to the Cadillac. A dille rent objective is to create a product line that facilitates cross-selling Hewlett-Packard sells printers amvelI as computers. Still another objective is to create a product line that protects against economic ups and downs EteCtrOlu offers while goods such as...

Pros And Cons Of Online Research

The cost of gathering survey information electronically is much less expensive man by iradi- iongl means. A typical e-mail survey oos-lg gbCHjl hai v,hot a conventional survey cosis, and return nates can lie as hirih as LO percent. For instance, Virgin.net used online research to launch its broadband service in the Uniied Kingdom in 2(XK. How the com-parry does au its research online. The brand has seen art increase in response rales from 17 percent with...

Voice Mail Hell

As anyone wfto has ever spent 15 minutes in Interactive Voice Mall Sheir knows, customer rage is a foci ul Iwenty-first-century lite. 'iVtrle v e ha e ever more products 1hat are supposed to make our lives more convenient, mere are ever mote tompancs we need lo deal with to install and set up these producls or li* a problem when ihey fail, in the past, we used to interact ih a human being now we are more likely to interact with a prerecorded voice message or a remole 'online technical help...

Image Differentiation

Buyers respond differently lo company and brand images.'Die primary way to account for Marlboro's extraordinary worldwide market share around 30 percent is that Marlboro's macho cowboy linage has struck a responsive chord with much of the rigareite-sino-kiu public. Wine and liquor companies also work hard to develop distinctive images for their brands. Image dirieteniiaiinn Tt'.s world-famous WaritMO Man image s Insianuy i cognija le on billboard and in prW ads Identity and image need to be...

The Container Store

Dallas-based specialty cftain Hie Container Store reaps liie benefii of using live customer service personnel to augment its online orders. A Container Store representative speaks on the phone will) each customer who siftmits an online request lor r.us'c.'ri closd planning. More importantly, phone calls don't end at the order initialiafl stage. An individual careWly reviews every Internet order before > t is MfiltetJ. If it seems thai certain parts of an order don't fit together, me customer...

Business Relationships Risks and Opportunism

Buvik and John note thai In establishing a customer-supplier relationship, iliere is tension between safeguarding and adaptation. Vertical coordination cari Facilitate sLroilgcr euMtnner-selier lies tint at the same time may increase the risk tq the customer's and supplier's s iccific Investments Specific investments are those expenditures tailored to a particular company and value chain partner e.g., investments in com iany-spectfic tramlng, equipment. mid operating procedures Of systems .''''...