During a recession, consumers’ discretionary spending is typically reduced, and simply providing quality products or services at a reasonable price may not be enough to draw customers in.
Consumers during a recession are not only looking for discounts; they’re looking for real value for their dollar. To simply discount every item you sell may not be financially prudent. Instead, what some savvy business owners have done is create a distinctive discount offering – a hook – that grabs consumer’s attention in its enticing appeal and value. Other product pricing often remains status quo, as the hook for the special offering pulls customers in. If done properly, it’s a win-win for both businesses and consumers.
Casual dining chain Applebee's has promoted their Pick ‘N Pair Lunch Combos (two selections from an array of soups, salads, sandwiches and pasta dishes) starting at $5.99, and their “2 for $20” dinners (a generous-sized appetizer and two classic entrees for a total of $20).
The big blooms of the online flower delivery companies – like FTD, 1-800-Flowers and ProFlowers – have been fighting the recession with special low-price promotions for big flower occasions like Mother’s Day. ProFlowers put out radio spots for their Peruvian Lilies bouquet – 100 blooms with a vase for $19.99/down from the regular price of $39.98. Listeners click on a microphone icon on their website and enter the DJ’s name to get the advertised special.
The large chains are not the only businesses that have successfully drawn in budget-conscious consumers in these economically challenging times. Here is a sampling of small business owners throughout the country that have shared their recession-busting tactics with Business Know-How:
Lynne Waymon, CEO of Contacts Count
Co-author of Make Your Contacts Count
Silver Spring, MD
Contacts Count is a nationwide consulting and training firm specializing in professional and business networking. When Co-founder and CEO Lynne Waymon experienced some repercussions of this latest recession – cancellations of an all-day keynote and a training session postponed to next fall – it became evident that some of her clients no longer had the funds for an all day keynote presentation or workshop. Waymon responded by creating new offerings in a repackaged format that are both cost-effective and educationally valuable for those companies with more limited funds.
Some of Contacts Count’s more budget conscious offerings now include:
Webinars: Less expensive - $79 per webinar; easy – attend from home or office
Book Clubs: Participants read Make Your Contacts Count in four segments; four 1-hour teleseminar sessions; $80 for all four sessions
Job Hunt: 50 Tips eBook: a mere $3.99 for this downloadable eBook that provides 50 tips for “job hunters in today’s crisis economy.” Waymon says this minimally priced product actually “advertises all of our other products;” in every tip, there’s a mention of her book or CD.
Waymon says the key to pulling in customers during a recession is the ability to be creative and repackage yourself – create a new product. “I’m keeping the relationships going – staying in touch,” says Waymon. Then, when company budgets get restored, you’re on the forefront of clients’ minds: “You don’t want to fall to the bottom of the pile. You need to stay on top on the pile.”
Lou Lynne Moss, owner of The Flower Shoppe
Pratt, Kansas
Lou Lynne Moss has witnessed first-hand the demise of florist shops in her neighboring rural towns in recent months. In business herself for 32 years, Moss though has managed to stay alive and successfully maintain her customer base through what has been challenging times for her industry. She’s accomplished this in part she says with a combination of “hard work, long hours, networking, a focus on quality and exceptional service.”
Maintaining relationships with her customers – that sometimes span three generations – is also one of Moss’s top priorities. It’s not unusual for this charming Flower Shoppe owner to simply pay a visit to a customer and have a nice chat at their kitchen table.
Moss has also devoted herself to research into finding unique floral offerings that will set her shop apart from the competition, and to meeting the special needs of her customers. Local teens recently asked for their prom corsages to be made with an Orchard in a particularly deep shade of purple. “I’ll find a way,” says Moss, “to get them exactly what they want.”
Jerry Jahn, owner of Spokane Movers
Spokane, Washington
In sharing his thoughts of how the recession has affected businesses in his neck of the woods, Spokane Movers owner Jerry Jahn shared a quip he heard on the golf course recently: “Flat is the new growth.” When the recession hit, Jahn himself experienced a halt in growth and even a downturn in business. A long-time business owner, Jahn rebounded by “going back to the same principles I used when I started out – carefully strategized advertising and focusing on customers’ needs.”
One way Jahn has accomplished this is by offering his customers a “6-Year Price Rollback.” On Spokanemovers.com’ homepage, a colorful scrolling screen message invitingly attracts the eye: “We have a Spring Special for you! CLICK HERE!” Upon clicking, website visitors find a coupon for special springtime weekday rates that were in effect in the year 2003. Jahn had considered calling the special something like, “the Economic Stimulator,” but opted instead for “Spring Special.”
Vincent Milano, owner of Setauket Pasteria
East Setauket, Long Island, New York
Nestled in a strip of stores in East Setauket, Long Island, lies Setauket Pasteria – a picturesque Italian restaurant owned by Vincent Milano. When Milano noticed less patrons coming into his restaurant, he took action that now has hungry customers filling his seats and keeping his wait staff busy and gainfully employed. Milano launched a “blitz” of lunch and dinner specials that has proven hard for local families, businesses or their wallets to resist.
Mondays through Fridays, a $5.00 lunch can be had – taxes included – and features five specials numbered one to five. Choices vary daily and may include selections such as Eggplant Rollatini, Chicken Parmigiana, Fettucini Alfredo, or a Personal Pizza. Milano feels part of the lunch special’s success, other than the price, is its simplicity. He’s enjoying a significant volume of repeat customers – many of them local businesses that are looking to cut back, but are still able to swing the $5.00-a-lunch tab.
Dinner specials also abound: Buy-1-Dinner-Get-1-Free Sundays and Wednesdays; Unlimited House Wine with Dinners on Tuesdays; $12.95 Pasta Night including Salad,
Pasta Entrée, and Dessert on Mondays; Free Soup, Salad and Dessert with any Entrée on Thursdays; and Live Music on Fridays.
The idea of either empty tables or unemployed staff is not something Milano is comfortable with. Through his specials, he “keeps things moving” the way he likes, and says he is “absolutely better off with the promotions.” Diners who order a glass of wine or dessert with their B1G1Free meals help – and the high volume repeat business helps too. … And after one taste of Setauket Pasteria’s homemade fettucini, it would be difficult not to come back for more. This writer can testify to that.
Reference:http://www.businessknowhow.com/marketing/recessioncustomers.htm
My OPINION:During a recession, consumers’ flexible spending is usually reduced, and simply providing quality products or services at a reasonable price may not be enough to draw customers in.
Here are some of tactics given to overcome when recessions is prevailing in the economy.
Consumers during a recession are not only looking for discounts; they’re looking for real value of their money. Qualified business owners advice to create a unique discount offering – a hook – that captures consumer’s attention in its attractive appeal and value. Other product pricing often remains status quo, as the hook for the special offering pulls customers in. If done properly, it’s a win-win for both businesses and consumers. The recession is dominated by offering special low-price promotions. a combination of “hard work, long hours, networking, a focus on quality and exceptional service.” We should carefully strategize advertising and focusing on customers’ needs.” By offering Buy-1- Get-1-Freeon special days.
Showing posts with label Sami ullah Baig. Show all posts
Showing posts with label Sami ullah Baig. Show all posts
Tuesday, December 29, 2009
Sunday, December 27, 2009
Customer Relationships Are Key to Your Marketing Strategy
By Laura Lake, About.com Guide
If I could show you how to increase your sales by 50% without increasing your marketing budget, would you be interested? Of course you would, what marketing professional or business owner wouldn't be interested? By the time you have finished this article you will have figured out how to do just that.
Take a few moments and think of all the inactive customer files you have in your file cabinet. Business owners often make the costly mistake of servicing a customer once then assuming "they'll stay" as a customer or client without maintaining and growing that relationship.
A year later that business owner is wondering what happened to that customer and where they went. Why haven't they hear from them? Did they leave? If so, why?
There are many reasons a customer or client may leave you, but the ones you will hear most often are:
* They felt your pricing was too high or unfair.
* They had an unresolved complaint.
* They took a competitors offer.
* They left because they felt you didn't care.
When you consider that the last two make up the majority of why a client or customer will no longer use your service or buy your products - it can be a hard pill to swallow. After all it means they are an inactive client because they felt you didn't care about them and your competitor did.
This makes sense when you consider that customers often purchase your service or product because they have developed a relationship with you, they owned another product or yours, or they were referred to you by a friend or associate.
When faced with the above facts why is it businesses spend 80% of their marketing dollars going after new customers and clients rather than nurturing, retaining, and maintaining the customer relationships they already have?
Before you spend your time and money going after new customers and clients you do not currently have a relationship with consider the following statistics:
* Repeat customers spend 33% more than new customers.
* Referrals among repeat customers are 107% greater than non-customers.
* It costs six times more to sell something to a prospect than to sell that same thing to a customer.
As you can see your marketing dollars will go further if you use it to build, nurture, and develop your customer relationships. This isn't as difficult as you think. Building these relationships just means treating your customers and clients as if they truly are your strategic partners and showing them that you truly care about them. It's important to try to satisfy them with the right products and services, supported by the right promotion and making it available at the right time and location. Customers can easily detect indifference and insincerity and they simply will not tolerate it. Long-term client and customer loyalty is a long-term challenge that you must strive for every day and with every transaction no matter how big or small.
While a growing business needs to constantly capture new customers, the focus and priority should be on pleasing your existing customer base. Companies that fail to nurture and retain their customer base ultimately fail. You will also spend twice as much to get new clients as you will in maintaining your existing customer base.You will also be limited in your ability to attract new clients if you can't hold onto and satisfy your existing customers and clients.
The bottom line is that one of the key components in marketing and business growth is to spend the majority of your time and effort nurturing customer relationships, so that you get business from existing clients and customers. This is a strategy that will move you forward in increasing your sales by 50% without increasing your budget.
Reference http://marketing.about.com/od/relationshipmarketing/a/crmstrategy.htm
My Opinion: Customer Relationship Management or CRM is a business strategy to devise to manage and retain the most valued customers of company. Customer Relationship Management (CRM) is a business strategy to select and manage most valuable customer relations. One of the challenges faced by the successful business is to acquire customer satisfaction and developing Customer Relationship Management…
If I could show you how to increase your sales by 50% without increasing your marketing budget, would you be interested? Of course you would, what marketing professional or business owner wouldn't be interested? By the time you have finished this article you will have figured out how to do just that.
Take a few moments and think of all the inactive customer files you have in your file cabinet. Business owners often make the costly mistake of servicing a customer once then assuming "they'll stay" as a customer or client without maintaining and growing that relationship.
A year later that business owner is wondering what happened to that customer and where they went. Why haven't they hear from them? Did they leave? If so, why?
There are many reasons a customer or client may leave you, but the ones you will hear most often are:
* They felt your pricing was too high or unfair.
* They had an unresolved complaint.
* They took a competitors offer.
* They left because they felt you didn't care.
When you consider that the last two make up the majority of why a client or customer will no longer use your service or buy your products - it can be a hard pill to swallow. After all it means they are an inactive client because they felt you didn't care about them and your competitor did.
This makes sense when you consider that customers often purchase your service or product because they have developed a relationship with you, they owned another product or yours, or they were referred to you by a friend or associate.
When faced with the above facts why is it businesses spend 80% of their marketing dollars going after new customers and clients rather than nurturing, retaining, and maintaining the customer relationships they already have?
Before you spend your time and money going after new customers and clients you do not currently have a relationship with consider the following statistics:
* Repeat customers spend 33% more than new customers.
* Referrals among repeat customers are 107% greater than non-customers.
* It costs six times more to sell something to a prospect than to sell that same thing to a customer.
As you can see your marketing dollars will go further if you use it to build, nurture, and develop your customer relationships. This isn't as difficult as you think. Building these relationships just means treating your customers and clients as if they truly are your strategic partners and showing them that you truly care about them. It's important to try to satisfy them with the right products and services, supported by the right promotion and making it available at the right time and location. Customers can easily detect indifference and insincerity and they simply will not tolerate it. Long-term client and customer loyalty is a long-term challenge that you must strive for every day and with every transaction no matter how big or small.
While a growing business needs to constantly capture new customers, the focus and priority should be on pleasing your existing customer base. Companies that fail to nurture and retain their customer base ultimately fail. You will also spend twice as much to get new clients as you will in maintaining your existing customer base.You will also be limited in your ability to attract new clients if you can't hold onto and satisfy your existing customers and clients.
The bottom line is that one of the key components in marketing and business growth is to spend the majority of your time and effort nurturing customer relationships, so that you get business from existing clients and customers. This is a strategy that will move you forward in increasing your sales by 50% without increasing your budget.
Reference http://marketing.about.com/od/relationshipmarketing/a/crmstrategy.htm
My Opinion: Customer Relationship Management or CRM is a business strategy to devise to manage and retain the most valued customers of company. Customer Relationship Management (CRM) is a business strategy to select and manage most valuable customer relations. One of the challenges faced by the successful business is to acquire customer satisfaction and developing Customer Relationship Management…
5 Key Ways to Build Customer Relationships
Gail Goodman: E-Mail Marketing:May 01, 2005
Money can't buy one of the most important things you need to promote your business: relationships. How do customer relationships drive your business? It's all about finding people who believe in your products or services. And when it comes to tracking these people down, you have two choices:
You can do all the legwork yourself and spend big marketing dollars. But that's like rolling a boulder up a hill. You want to drive your business into new territory, but every step is hard and expensive. There's another less painful--and potentially more profitable-way...
You can create an army to help you push that boulder up the hill instead. How do you do that? You develop relationships with people who don't just understand your particular expertise, product or service, but who are excited and buzzing about what you do. You stay connected with them and give them value, and they'll touch other people who can benefit your business.
Powerful relationships don't just happen from one-time meetings at networking events--you don't need another pocketful of random business cards to clutter your desk. What you need is a plan to make those connections grow and work for you. And it's not as hard as you think. Here are five essential tactics:
1. Build your network--it's your sales lifeline. Your network includes business colleagues, professional acquaintances, prospective and existing customers, partners, suppliers, contractors and association members, as well as family, friends and people you meet at school, church and in your community.
Contacts are potential customers waiting for you to connect with their needs. How do you turn networks of contacts into customers? Not by hoping they'll remember meeting you six months ago at that networking event. Networking is a long-term investment. Do it right by adding value to the relationship, and that contact you just made can really pay off. Communicate like your business's life depends on it. (Hint: And it does! Read on.)
2. Communication is a contact sport, so do it early and often. Relationships have a short shelf life. No matter how charming, enthusiastic or persuasive you are, no one will likely remember you from a business card or a one-time meeting. One of the biggest mistakes people make is that they come home from networking events and fail to follow up. Make the connection immediately. Send a "nice to meet you" e-mail or let these new contacts know you've added them to your newsletter list and then send them the latest copy. Immediately reinforce who you are, what you do and the connection you've made.
You rarely meet people at the exact moment when they need what you offer. When they're ready, will they think of you? Only if you stay on their minds. It's easier to keep a connection warm than to warm it up again once the trail goes cold. So take the time to turn your network of connections into educated customers.
3. E-mail marketing keeps relationships strong on a shoestring budget. Build your reputation as an expert by giving away some free insight. You have interesting things to say! An easy way to communicate is with a brief e-mail newsletter that shows prospects why they should buy from you. For just pennies per customer, you can distribute an e-mail newsletter that includes tips, advice and short items that entice consumers and leave them wanting more. E-mail marketing is a cost-effective and easy way to stay on customers' minds, build their confidence in your expertise, and retain them. And it's viral: Contacts and customers who find what you do interesting or valuable will forward your e-mail message or newsletter to other people, just like word of mouth marketing.
4. Reward loyal customers, and they'll reward you. According to global management consulting firm Bain and Co., a 5 percent increase in retention yields profit increases of 25 to 100 percent. And on average, repeat customers spend 67 percent more than new customers. So your most profitable customers are repeat customers. Are you doing enough to encourage them to work with you again? Stay in touch, and give them something of value in exchange for their time, attention and business. It doesn't need to be too much; a coupon, notice of a special event, helpful insights and advice, or news they can use are all effective. Just remember: If you don't keep in touch with your customers, your competitors will.
5. Loyal customers are your best salespeople. So spend the time to build your network and do the follow-up. Today there are cost effective tools, like e-mail marketing, that make this easy. You can e-mail a simple newsletter, an offer or an update message of interest to your network (make sure it's of interest to them, not just to you). Then they'll remember you and what you do and deliver value back to you with referrals. They'll hear about opportunities you'll never hear about. The only way they can say, "Wow, I met somebody who's really good at XYZ. You should give her a call," is if they remember you. Then your customers become your sales force.
If real estate is all about location, location, location, then small business is all about relationships, relationships, relationships. Find them, nurture them, and watch your sales soar.
Reference:http://www.entrepreneur.com/marketing/onlinemarketing/article77686.html
MY opinion.
Money can't buy one of the most important things you need to promote your business: relationships. How do customer relationships drive your business? It's all about finding people who believe in your products or services. And when it comes to tracking these people down, you have two choices:
You can do all the legwork yourself and spend big marketing dollars. But that's like rolling a boulder up a hill. You want to drive your business into new territory, but every step is hard and expensive. There's another less painful--and potentially more profitable-way...
You can create an army to help you push that boulder up the hill instead. How do you do that? You develop relationships with people who don't just understand your particular expertise, product or service, but who are excited and buzzing about what you do. You stay connected with them and give them value, and they'll touch other people who can benefit your business.
Powerful relationships don't just happen from one-time meetings at networking events--you don't need another pocketful of random business cards to clutter your desk. What you need is a plan to make those connections grow and work for you. And it's not as hard as you think. Here are five essential tactics:
1. Build your network--it's your sales lifeline. Your network includes business colleagues, professional acquaintances, prospective and existing customers, partners, suppliers, contractors and association members, as well as family, friends and people you meet at school, church and in your community.
Contacts are potential customers waiting for you to connect with their needs. How do you turn networks of contacts into customers? Not by hoping they'll remember meeting you six months ago at that networking event. Networking is a long-term investment. Do it right by adding value to the relationship, and that contact you just made can really pay off. Communicate like your business's life depends on it. (Hint: And it does! Read on.)
2. Communication is a contact sport, so do it early and often. Relationships have a short shelf life. No matter how charming, enthusiastic or persuasive you are, no one will likely remember you from a business card or a one-time meeting. One of the biggest mistakes people make is that they come home from networking events and fail to follow up. Make the connection immediately. Send a "nice to meet you" e-mail or let these new contacts know you've added them to your newsletter list and then send them the latest copy. Immediately reinforce who you are, what you do and the connection you've made.
You rarely meet people at the exact moment when they need what you offer. When they're ready, will they think of you? Only if you stay on their minds. It's easier to keep a connection warm than to warm it up again once the trail goes cold. So take the time to turn your network of connections into educated customers.
3. E-mail marketing keeps relationships strong on a shoestring budget. Build your reputation as an expert by giving away some free insight. You have interesting things to say! An easy way to communicate is with a brief e-mail newsletter that shows prospects why they should buy from you. For just pennies per customer, you can distribute an e-mail newsletter that includes tips, advice and short items that entice consumers and leave them wanting more. E-mail marketing is a cost-effective and easy way to stay on customers' minds, build their confidence in your expertise, and retain them. And it's viral: Contacts and customers who find what you do interesting or valuable will forward your e-mail message or newsletter to other people, just like word of mouth marketing.
4. Reward loyal customers, and they'll reward you. According to global management consulting firm Bain and Co., a 5 percent increase in retention yields profit increases of 25 to 100 percent. And on average, repeat customers spend 67 percent more than new customers. So your most profitable customers are repeat customers. Are you doing enough to encourage them to work with you again? Stay in touch, and give them something of value in exchange for their time, attention and business. It doesn't need to be too much; a coupon, notice of a special event, helpful insights and advice, or news they can use are all effective. Just remember: If you don't keep in touch with your customers, your competitors will.
5. Loyal customers are your best salespeople. So spend the time to build your network and do the follow-up. Today there are cost effective tools, like e-mail marketing, that make this easy. You can e-mail a simple newsletter, an offer or an update message of interest to your network (make sure it's of interest to them, not just to you). Then they'll remember you and what you do and deliver value back to you with referrals. They'll hear about opportunities you'll never hear about. The only way they can say, "Wow, I met somebody who's really good at XYZ. You should give her a call," is if they remember you. Then your customers become your sales force.
If real estate is all about location, location, location, then small business is all about relationships, relationships, relationships. Find them, nurture them, and watch your sales soar.
Reference:http://www.entrepreneur.com/marketing/onlinemarketing/article77686.html
MY opinion.
Consumer Buying Behavior
Possibly the most challenging concept in marketing deals with understanding why buyers do what they do (or don’t do). But such knowledge is critical for marketers since having a strong understanding of buyer behavior will help shed light on what is important to the customer and also suggest the important influences on customer decision-making. Using this information, marketers can create marketing programs that they believe will be of interest to customers.
As you might guess, factors affecting how customers make decisions are extremely complex. Buyer behavior is deeply rooted in psychology with dashes of sociology thrown in just to make things more interesting. Since every person in the world is different, it is impossible to have simple rules that explain how buying decisions are made. But those who have spent many years analyzing customer activity have presented us with useful “guidelines” in how someone decides whether or not to make a purchase.
Consumer Buying BehaviorIn fact, pick up any textbook that examines customer behavior and each seems to approach it from a different angle. The perspective we take is to touch on just the basic concepts that appear to be commonly accepted as influencing customer behavior. We will devote two sections of the Principles of Marketing Tutorials to customer behavior. In this section we will examine the buying behavior of consumers (i.e., when people buy for personal reasons) while in the Business Buying Behavior tutorial we will examine factors that influence buyer’s decisions in the business market.
Reference:http://www.knowthis.com/principles-of-marketing-tutorials/consumer-buying-behavior/
MY OPINION:Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for:
Buyer’s reactions to a firms marketing strategy has a great impact on the firm’s success.
The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy.
Marketers can better predict how consumers will respond to marketing strategies.
A consumer, making a purchase decision will be affected by the following three factors:
Personal
Psychological
Social
As you might guess, factors affecting how customers make decisions are extremely complex. Buyer behavior is deeply rooted in psychology with dashes of sociology thrown in just to make things more interesting. Since every person in the world is different, it is impossible to have simple rules that explain how buying decisions are made. But those who have spent many years analyzing customer activity have presented us with useful “guidelines” in how someone decides whether or not to make a purchase.
Consumer Buying BehaviorIn fact, pick up any textbook that examines customer behavior and each seems to approach it from a different angle. The perspective we take is to touch on just the basic concepts that appear to be commonly accepted as influencing customer behavior. We will devote two sections of the Principles of Marketing Tutorials to customer behavior. In this section we will examine the buying behavior of consumers (i.e., when people buy for personal reasons) while in the Business Buying Behavior tutorial we will examine factors that influence buyer’s decisions in the business market.
Reference:http://www.knowthis.com/principles-of-marketing-tutorials/consumer-buying-behavior/
MY OPINION:Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for:
Buyer’s reactions to a firms marketing strategy has a great impact on the firm’s success.
The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy.
Marketers can better predict how consumers will respond to marketing strategies.
A consumer, making a purchase decision will be affected by the following three factors:
Personal
Psychological
Social
Saturday, December 26, 2009
4 Dynamic Marketing Tactics
1. Focus on Your Best Prospects Imagine how profitable your business would be if more of your new customers were like the best customers you have now. Here's how you can make that happen...
Take some time to analyze your current customers to determine what key traits they share - and why those traits make them ideal customers for you. Then revise your sales message to appeal specifically to them.
This will increase both the number of new sales you get and the profitability of each new customer.
2. Pile on the Benefits Customers usually buy something to save time or to save money. Offer them an opportunity to do both and you will boost your sales. But offer them multiple opportunities to do both and you will cause your sales to soar dramatically.
For example, structure your sales message to stress both the time saving and money saving benefits of your product or service. Then include a discount price offer if they buy before a certain deadline (more money saved). Finally, figure out how you can deliver all or some of what they are buying immediately (more time saved).
Tip: If you cannot deliver all or part of your product immediately, add something to the purchase that you can deliver immediately. It can be as simple as a series of helpful tips related to your product posted on your web site ..but available only to new customers.
3. Make Buying Easy Make it easy for potential customers to buy from you and more will buy. Look for ways you can make your buying process easier - and faster.
For example, design your selling procedure so prospects do not have to make unnecessary decisions. Every decision they have to make interrupts the buying process ...and diverts their attention away from completing the sale.
Tip: Don't ask for unnecessary information during the ordering process. Instead, follow up after the sale with a personalized "thank you" message - and include a brief request for the information.
4. Follow Up - Again and Again Selling is not a one step process. Most people do not buy something the first time the see or hear about it. You can salvage many of these potential customers with an effective follow up system.
Your follow up can be as simple as contacting these prospects periodically with a new offer. Or, better yet, follow up periodically with some useful information ...and don't charge them for it. You'll build a supportive relationship that gains their trust - and eventually the sale.
Tip: Make sure you have a way to get the email addresses of visitors to your web site. You need it to follow up with them. For example, offer them a complimentary special report or other useful information ...delivered only by email.
Each of these 4 dynamic marketing tactics provides a simple way for you to boost your sales and profits quickly. They are simple to use, highly effective and require very little if any new expense.
http://www.businessknowhow.com/MARKETING/dynamic.htm
MY OPINION>>
These are the 4 Dynamic Marketing Tactics which will often produces the profitable results and highly effective for businesses.Firstly the marketing manager should analyze their current customer’s response towards the product and go through their personality traits. So that they can understand customer needs and wants..Offer them multiple opportunities like discounts, free delivery and buy 1 get 1 free offer to attract customers. M manager should make the selling procedure easier and faster. it leads towards potential customers to buy from you and more will buy. we can salvage many of potential customers by providing useful & proper information about the product and don't charge them for it we'll build a supportive relationship that gains their trust - and eventually the sale. each of these 4 dynamic marketing tactics provides a simple way for you to boost your sales and profits quickly. They are simple to use, highly effective and require very little if any new expense.
Take some time to analyze your current customers to determine what key traits they share - and why those traits make them ideal customers for you. Then revise your sales message to appeal specifically to them.
This will increase both the number of new sales you get and the profitability of each new customer.
2. Pile on the Benefits Customers usually buy something to save time or to save money. Offer them an opportunity to do both and you will boost your sales. But offer them multiple opportunities to do both and you will cause your sales to soar dramatically.
For example, structure your sales message to stress both the time saving and money saving benefits of your product or service. Then include a discount price offer if they buy before a certain deadline (more money saved). Finally, figure out how you can deliver all or some of what they are buying immediately (more time saved).
Tip: If you cannot deliver all or part of your product immediately, add something to the purchase that you can deliver immediately. It can be as simple as a series of helpful tips related to your product posted on your web site ..but available only to new customers.
3. Make Buying Easy Make it easy for potential customers to buy from you and more will buy. Look for ways you can make your buying process easier - and faster.
For example, design your selling procedure so prospects do not have to make unnecessary decisions. Every decision they have to make interrupts the buying process ...and diverts their attention away from completing the sale.
Tip: Don't ask for unnecessary information during the ordering process. Instead, follow up after the sale with a personalized "thank you" message - and include a brief request for the information.
4. Follow Up - Again and Again Selling is not a one step process. Most people do not buy something the first time the see or hear about it. You can salvage many of these potential customers with an effective follow up system.
Your follow up can be as simple as contacting these prospects periodically with a new offer. Or, better yet, follow up periodically with some useful information ...and don't charge them for it. You'll build a supportive relationship that gains their trust - and eventually the sale.
Tip: Make sure you have a way to get the email addresses of visitors to your web site. You need it to follow up with them. For example, offer them a complimentary special report or other useful information ...delivered only by email.
Each of these 4 dynamic marketing tactics provides a simple way for you to boost your sales and profits quickly. They are simple to use, highly effective and require very little if any new expense.
http://www.businessknowhow.com/MARKETING/dynamic.htm
MY OPINION>>
These are the 4 Dynamic Marketing Tactics which will often produces the profitable results and highly effective for businesses.Firstly the marketing manager should analyze their current customer’s response towards the product and go through their personality traits. So that they can understand customer needs and wants..Offer them multiple opportunities like discounts, free delivery and buy 1 get 1 free offer to attract customers. M manager should make the selling procedure easier and faster. it leads towards potential customers to buy from you and more will buy. we can salvage many of potential customers by providing useful & proper information about the product and don't charge them for it we'll build a supportive relationship that gains their trust - and eventually the sale. each of these 4 dynamic marketing tactics provides a simple way for you to boost your sales and profits quickly. They are simple to use, highly effective and require very little if any new expense.
Friday, December 25, 2009
The Marketing Mix
The Marketing Mix(The 4 P's of Marketing)
Marketing decisions generally fall into the following four controllable categories:
Product
Price
Place (distribution)
Promotion
The term "marketing mix" became popularized after Neil H. Borden published his 1964 article, The Concept of the Marketing Mix. Borden began using the term in his teaching in the late 1940's after James Culliton had described the marketing manager as a "mixer of ingredients". The ingredients in Borden's marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. E. Jerome McCarthy later grouped these ingredients into the four categories that today are known as the 4 P's of marketing, depicted below:
The Marketing
These four P's are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response.
Product Decisions
The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made:
Brand name
Functionality
Styling
Quality
Safety
Packaging
Repairs and Support
Warranty
Accessories and services
Price Decisions
Some examples of pricing decisions to be made include:
Pricing strategy (skim, penetration, etc.)
Suggested retail price
Volume discounts and wholesale pricing
Cash and early payment discounts
Seasonal pricing
Bundling
Price flexibility
Price discrimination
Distribution (Place) Decisions
Distribution is about getting the products to the customer. Some examples of distribution decisions include:
Distribution channels
Market coverage (inclusive, selective, or exclusive distribution)
Specific channel members
Inventory management
Warehousing
Distribution centers
Order processing
Transportation
Reverse logistics
Promotion Decisions
In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include:
Promotional strategy (push, pull, etc.)
Advertising
Personal selling & sales force
Sales promotions
Public relations & publicity
Marketing communications budget
Limitations of the Marketing Mix Framework
The marketing mix framework was particularly useful in the early days of the marketing concept when physical products represented a larger portion of the economy. Today, with marketing more integrated into organizations and with a wider variety of products and markets, some authors have attempted to extend its usefulness by proposing a fifth P, such as packaging, people, process, etc. Today however, the marketing mix most commonly remains based on the 4 P's. Despite its limitations and perhaps because of its simplicity, the use of this framework remains strong and many marketing textbooks have been organized around it.
Marketing decisions generally fall into the following four controllable categories:
Product
Price
Place (distribution)
Promotion
The term "marketing mix" became popularized after Neil H. Borden published his 1964 article, The Concept of the Marketing Mix. Borden began using the term in his teaching in the late 1940's after James Culliton had described the marketing manager as a "mixer of ingredients". The ingredients in Borden's marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. E. Jerome McCarthy later grouped these ingredients into the four categories that today are known as the 4 P's of marketing, depicted below:
The Marketing
These four P's are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response.
Product Decisions
The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made:
Brand name
Functionality
Styling
Quality
Safety
Packaging
Repairs and Support
Warranty
Accessories and services
Price Decisions
Some examples of pricing decisions to be made include:
Pricing strategy (skim, penetration, etc.)
Suggested retail price
Volume discounts and wholesale pricing
Cash and early payment discounts
Seasonal pricing
Bundling
Price flexibility
Price discrimination
Distribution (Place) Decisions
Distribution is about getting the products to the customer. Some examples of distribution decisions include:
Distribution channels
Market coverage (inclusive, selective, or exclusive distribution)
Specific channel members
Inventory management
Warehousing
Distribution centers
Order processing
Transportation
Reverse logistics
Promotion Decisions
In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include:
Promotional strategy (push, pull, etc.)
Advertising
Personal selling & sales force
Sales promotions
Public relations & publicity
Marketing communications budget
Limitations of the Marketing Mix Framework
The marketing mix framework was particularly useful in the early days of the marketing concept when physical products represented a larger portion of the economy. Today, with marketing more integrated into organizations and with a wider variety of products and markets, some authors have attempted to extend its usefulness by proposing a fifth P, such as packaging, people, process, etc. Today however, the marketing mix most commonly remains based on the 4 P's. Despite its limitations and perhaps because of its simplicity, the use of this framework remains strong and many marketing textbooks have been organized around it.
REFERENCE>http://www.netmba.com/marketing/mix/
MY OPINION:
The marketing mix principles (also known as the 4 p’s.) are used by business as tools to assist them in achieving their objectives. The marketing mix principles are controllable variables, which have to be carefully managed and must meet the needs of the defined target group. it also leads the company towards the growth and maximize the performance effectively.
The 4 Ps explains the company’s marketing strategy in the following manners.
· How will you design, package and add value to the product. Product strategies.
· What pricing strategy is appropriate to use Price strategies.
· Where will the firm locate? Place strategies.
· How will the firm promote its product Promotion strategies?
The 4 Ps explains the company’s marketing strategy in the following manners.
· How will you design, package and add value to the product. Product strategies.
· What pricing strategy is appropriate to use Price strategies.
· Where will the firm locate? Place strategies.
· How will the firm promote its product Promotion strategies?
Types of Marketing
Types of Marketing
This is an excerpt from the paper... There are two broad types of markets in the marketing environment·consumer markets and organizational markets. Consumer markets are those wherein the products and services sold are consumed by the purchasers. Organizational markets are those wherein the products and services sold are resold to consumers, processed in the creation of other products and services, or consumed by the purchaser as a part of the process of serving a consumer clientele.
Within the organizational markets classification, there are industrial markets, institutional markets, reseller markets, and government markets. With respect to business-to-business marketing, the relevant sub-classifications in the organizational markets classification are the industrial market and the reseller market. The industrial market is that in which the products and services sold are used by the buyers in the creation of other products and services, while the reseller market is that in which the buyers of products and services resell those products and services to other buyers.
In the reseller market, retailers resell the products and services directly to consumers, while wholesalers and distributors resell the products and services to either retailers or to firms in the industrial market. Wholesalers and distributors are a part of the business-to-business market. The industrial market is also a part of the business-to-business market.
A business-to-business marketing organization's external environment has
. . .r smaller families, and a growing preoccupation with personal health and fitness both created and ended strategic opportunities for some marketing organizations. Shifting societal attitudes toward work also affects strategic planning. The list of such factors is extensive, as are the changes in the significance of the factors over time. The very uncertainty of such factors causes many managers to attempt to ignore them in the strategic marketing planning process. Such managers tend to have little tolerance for ambiguity, and, thus, they often do not appreciate the necessity to deal with uncertainty in the strategic marketing planning for their organizations. A marketing organization's external environment, thus, is composed of an incredibly complex and diverse array of factors. These factors are generally related to (1) the economy, (2) governments, (3) markets, (4) technology, (5) geography, and (6) society. Unfortunately, all of these factors have a dynamic characteristic. The one thing that strategic planners can usually count on is that the inputs on which they rely will not likely remain stable for very long; over the short-term, perhaps, but over the long-term, probably not. There are several different concepts up . . .
REFERENCE:http://www.lotsofessays.com/viewpaper/1696477.html
MY Opinion: Types of Marketing
There are two types of markets in the marketing environment consumer markets (where the products and services sold are consumed by the buyer) and organizational markets.(wherein the products and services sold are resold to consumers, or they are used in production process as raw material)
Organizational markets have been further classified as industrial markets, (in which the products and services sold are used by the buyers as raw material in producing other good & services), institutional markets, reseller markets,(in which the buyers of products and services resell those products and services to other buyers) in this type of market retailers resell the products and services directly to consumers. While wholesalers and distributors resell the products and services to either retailers or to firms in the industrial market. and government markets. A marketing organization's external environment is composed of following factors (1) the economy, (2) governments, (3) markets, (4) technology, (5) geography, and (6) society.
Thursday, December 24, 2009
Niche market
A niche market is the subset of the market on which a specific product is focusing on; Therefore the market niche defines the specific product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact.
Every single product that is on sale can be defined by its niche market. As of special note, the products aimed at a wide demographics audience, with the resulting low price (due to Price elasticity of demand), are said to belong to the Mainstream niche, in practice referred only as Mainstream or of high demand. Narrowed demographics though lead to elevated price because of the same principles.
In practice, product vendors and trade businesses are commonly referred as mainstream providers or narrow demographics niche market providers (colloquially shortened to just niche market providers). Small capital providers usually opt for a niche market with narrow demographics as a measure of increasing their gain margins.
Nevertheless, the final product quality (low or high) is not dependant on the price elasticity of demand though, it is more associated with the specific needs that the product is aimed at satisfy and in some cases with brand recognition which the vendor wants to be associated with (i.e Prestige, Practicability, Money saving, Expensiveness, Planet environment conscience, Power, etc
REFERENCE:http://en.wikipedia.org/wiki/Niche_market
MY OPINION:Marketing strategy whereby marketers devote 100% of their efforts toward a small segment of a market instead of the whole market. There are several different niche marketing strategies: end user strategy, serving only one type of end user customer; vertical level strategy, specializing in one level of the production-distribution cycle; customer size strategy, selling products designed for only one size customer, such as petite or extra large clothes; service strategy, offering a service not available from any other company; and geographic strategy, selling only in one geographic area..
Every single product that is on sale can be defined by its niche market. As of special note, the products aimed at a wide demographics audience, with the resulting low price (due to Price elasticity of demand), are said to belong to the Mainstream niche, in practice referred only as Mainstream or of high demand. Narrowed demographics though lead to elevated price because of the same principles.
In practice, product vendors and trade businesses are commonly referred as mainstream providers or narrow demographics niche market providers (colloquially shortened to just niche market providers). Small capital providers usually opt for a niche market with narrow demographics as a measure of increasing their gain margins.
Nevertheless, the final product quality (low or high) is not dependant on the price elasticity of demand though, it is more associated with the specific needs that the product is aimed at satisfy and in some cases with brand recognition which the vendor wants to be associated with (i.e Prestige, Practicability, Money saving, Expensiveness, Planet environment conscience, Power, etc
REFERENCE:http://en.wikipedia.org/wiki/Niche_market
MY OPINION:Marketing strategy whereby marketers devote 100% of their efforts toward a small segment of a market instead of the whole market. There are several different niche marketing strategies: end user strategy, serving only one type of end user customer; vertical level strategy, specializing in one level of the production-distribution cycle; customer size strategy, selling products designed for only one size customer, such as petite or extra large clothes; service strategy, offering a service not available from any other company; and geographic strategy, selling only in one geographic area..
PEST Analysis
A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. For this reason, some say that "pest" is an appropriate term for these factors. However, changes in the external environment also create new opportunities and the letters sometimes are rearranged to construct the more optimistic term of STEP analysis.
Many macro-environmental factors are country-specific and a PEST analysis will need to be performed for all countries of interest. The following are examples of some of the factors that might be considered in a PEST analysis.
Political Analysis
Political stability
Risk of military invasion
Legal framework for contract enforcement
Intellectual property protection
Trade regulations & tariffs
Favored trading partners
Anti-trust laws
Pricing regulations
Taxation - tax rates and incentives
Wage legislation - minimum wage and overtime
Work week
Mandatory employee benefits
Industrial safety regulations
Product labeling requirements
Economic Analysis
Type of economic system in countries of operation
Government intervention in the free market
Comparative advantages of host country
Exchange rates & stability of host country currency
Efficiency of financial markets
Infrastructure quality
Skill level of workforce
Labor costs
Business cycle stage (e.g. prosperity, recession, recovery)
Economic growth rate
Discretionary income
Unemployment rate
Inflation rate
Interest rates
Social Analysis
Demographics
Class structure
Education
Culture (gender roles, etc.)
Entrepreneurial spirit
Attitudes (health, environmental consciousness, etc.)
Leisure interests
Technological Analysis
Recent technological developments
Technology's impact on product offering
Impact on cost structure
Impact on value chain structure
Rate of technological diffusion
The number of macro-environmental factors is virtually unlimited. In practice, the firm must prioritize and monitor those factors that influence its industry. Even so, it may be difficult to forecast future trends with an acceptable level of accuracy. In this regard, the firm may turn to scenario planning techniques to deal with high levels of uncertainty in important macro-environmental variables.
REference:http://www.netmba.com/strategy/pest/
MY Opinion: PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.As a starting point we should to consider what environmental influences have been particularly important in the past, and the extent to which there are changes occurring which may make any of these more or less significant in the future for the firm and its competitors.
Many macro-environmental factors are country-specific and a PEST analysis will need to be performed for all countries of interest. The following are examples of some of the factors that might be considered in a PEST analysis.
Political Analysis
Political stability
Risk of military invasion
Legal framework for contract enforcement
Intellectual property protection
Trade regulations & tariffs
Favored trading partners
Anti-trust laws
Pricing regulations
Taxation - tax rates and incentives
Wage legislation - minimum wage and overtime
Work week
Mandatory employee benefits
Industrial safety regulations
Product labeling requirements
Economic Analysis
Type of economic system in countries of operation
Government intervention in the free market
Comparative advantages of host country
Exchange rates & stability of host country currency
Efficiency of financial markets
Infrastructure quality
Skill level of workforce
Labor costs
Business cycle stage (e.g. prosperity, recession, recovery)
Economic growth rate
Discretionary income
Unemployment rate
Inflation rate
Interest rates
Social Analysis
Demographics
Class structure
Education
Culture (gender roles, etc.)
Entrepreneurial spirit
Attitudes (health, environmental consciousness, etc.)
Leisure interests
Technological Analysis
Recent technological developments
Technology's impact on product offering
Impact on cost structure
Impact on value chain structure
Rate of technological diffusion
The number of macro-environmental factors is virtually unlimited. In practice, the firm must prioritize and monitor those factors that influence its industry. Even so, it may be difficult to forecast future trends with an acceptable level of accuracy. In this regard, the firm may turn to scenario planning techniques to deal with high levels of uncertainty in important macro-environmental variables.
REference:http://www.netmba.com/strategy/pest/
MY Opinion: PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.As a starting point we should to consider what environmental influences have been particularly important in the past, and the extent to which there are changes occurring which may make any of these more or less significant in the future for the firm and its competitors.
Wednesday, December 23, 2009
Developing Small Business Marketing Concept
In the context of small business marketing concept, Here are some specific ways in which the marketing concept approach differs from the classic, or sales, approach to managing a business.
1. In the classic approach, engineers and designers create a product, which is then given to salespeople who are told to find customers and sell the product. In the marketing approach, the first step is to determine what the customer needs or wants. That information is given to designers who develop the product and finally to engineers who produce it. Thus, the sales approach only ends with the customer, while the marketing approach begins and ends with the customer.
2. The second major difference between the sales and marketing approaches is the focus of management. The sales approach almost always focuses on volume while the marketing approach focuses on profit.
In short, under the classic (sales) approach the customer exists for the business, while under the marketing approach the business exists for the customer.
To Developing Your Small Business Marketing Concept - Top
The market strategy concept is a management plan that views all marketing components as part of a total system that requires effective planning, organization, leadership and control. It is based on the importance of customers to a firm, and states that:
All company policies and activities should be aimed at satisfying customer needs.
Profitable sales volume is a better company goal than maximum sales volume.
In order to conduct a successful marketing concept program you must be able to answer the following questions:
1. What type of business are you in (manufacturing, merchandising or service)?
2. What is the nature of your product(s) or service(s)?
3. What market segments do you intend to serve? (Describe the age, sex, income level and life-style characteristics of each market segment.)
4. What strategies will you use to attract and keep customers?
Product
Price
Place
Promotion
Persuasion (personal selling)
5. What is your unique selling proposition (USP)?
6. Who is your competition, and what will you do to control your share of the market?
Reference: http://www.bizmove.com/marketing/m2d.htm.
MY OPINION.
There are two methods of managing small businesses.
in developing a small business the marketing concept is a management plan that views all marketing components as part of a total system .It is based on the importance of customers to a firm and satisfying his needs and wants by offering high quality product as well as totally focus on profit of the firm.
the firm should select the type of business and nature of product they want to offer to particular segment(age, sex, income level) of the market.
They should use verious kind of strategies to attract customer .eg by offering USP .
1. In the classic approach, engineers and designers create a product, which is then given to salespeople who are told to find customers and sell the product. In the marketing approach, the first step is to determine what the customer needs or wants. That information is given to designers who develop the product and finally to engineers who produce it. Thus, the sales approach only ends with the customer, while the marketing approach begins and ends with the customer.
2. The second major difference between the sales and marketing approaches is the focus of management. The sales approach almost always focuses on volume while the marketing approach focuses on profit.
In short, under the classic (sales) approach the customer exists for the business, while under the marketing approach the business exists for the customer.
To Developing Your Small Business Marketing Concept - Top
The market strategy concept is a management plan that views all marketing components as part of a total system that requires effective planning, organization, leadership and control. It is based on the importance of customers to a firm, and states that:
All company policies and activities should be aimed at satisfying customer needs.
Profitable sales volume is a better company goal than maximum sales volume.
In order to conduct a successful marketing concept program you must be able to answer the following questions:
1. What type of business are you in (manufacturing, merchandising or service)?
2. What is the nature of your product(s) or service(s)?
3. What market segments do you intend to serve? (Describe the age, sex, income level and life-style characteristics of each market segment.)
4. What strategies will you use to attract and keep customers?
Product
Price
Place
Promotion
Persuasion (personal selling)
5. What is your unique selling proposition (USP)?
6. Who is your competition, and what will you do to control your share of the market?
Reference: http://www.bizmove.com/marketing/m2d.htm.
MY OPINION.
There are two methods of managing small businesses.
- Marketing Concept: In this process product is developed & produced based on needs & wants of customer and also focuses on profit.
- Slaes Concept:In this approach product is developed and produced with out any research on customer needs & wants they only focus on maximizing sales volume of product..
in developing a small business the marketing concept is a management plan that views all marketing components as part of a total system .It is based on the importance of customers to a firm and satisfying his needs and wants by offering high quality product as well as totally focus on profit of the firm.
the firm should select the type of business and nature of product they want to offer to particular segment(age, sex, income level) of the market.
They should use verious kind of strategies to attract customer .eg by offering USP .
Market Segmentation, Targeting, And Positioning For Competitive Advantage
Segmentation, targeting, and positioning are marketing tools used by a company to gain competitive advantage in the market. They help the company to differentiate its product offering from that of its competitors and ensure that the same reaches the exact market profile for which it is intended. Market segmentation is the process of dividing the market into similar groups according to the characteristics intended for the product at hand. Targeting is the process of selecting the most lucrative market segments for marketing the product. Positioning involves the formulation of a definitive marketing strategy around which the product at hand would be finally marketed amongst the target audience.
MY OPINION:
following are the tools for designing a customer driven marketing strategy that plays a vital role in determining the market share for a company's product or service.
MY OPINION:
following are the tools for designing a customer driven marketing strategy that plays a vital role in determining the market share for a company's product or service.
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