Research Articles Base: Mobile Advertising

Understanding Value – Buyer Behaviour and Segmentation of an Electrical Appliance Retail Company (1,493 words)

Understanding Value – Buyer Behaviour and Segmentation of an Electrical Appliance Retail Company (1,493 words)     Introduction DigiPlaza is an electrical appliance retail store located in the along the busiest alley of the biggest mall in the country. This location gives the store strategic access to individuals of every economic and social orientation which the mall generally caters to. The store occupies three stalls that the mall opened for franchisers making the store bigger compared to other enterprises inside the mall. The store employs 30 staff which includes the sales and customer attendants, the electrical personnel for the electronics services, and the people in the stocks and supply room.   DigiPlaza is an electrical appliance retail centre which caters to the needs of technologically-savvy individuals and attends to the demands of other customer base as dictated by the clientele of the specific products that the store offers. These products include the desktop computers, laptops and notebooks; an array of different and latest models of mobile communication gadgets like cellular phones, digital cameras, mp3, mp4, and mp10 players, and other audio-visual communication appliances like television sets, stereos and speakers, VCD and DVD players among others. This paper aims to illustrate the value of buyer behaviour and market segmentation concepts and approaches in order to effectively reach to customers in marketing and selling the products and services of the DigiPlaza.          Market Classification and Target According to  (2001), consumer buying behaviour refers to the buying behaviour of the individuals and households who buy the goods and services for personal consumption. This behaviour then impacts how products and services are presented to the different consumer markets. There are many components which influence consumer behaviour namely: cultural, social, personal and psychological (2001). These characteristics cannot be controlled by the companies; therefore, a need to assess these elements in order to create an effective marketing plan.   Consumers can either be subjective or objective, testing the persuasiveness of brand names. Retail stores selling the products also play an important role in swaying the decisions of consumers. The whole package or visual appeal of the retail outlet can determine sales, or the service of the sales ladies or the clerks. Furthermore, consumers may choose particular products/brands not only because these products provide the functional or performance benefits expected, but also because products can be used to express consumers’ personality, social status or affiliation (symbolic purposes) or to fulfil their internal psychological needs, such as the need for change or newness (emotional purposes) (2002). These are just some of the factors that affect consumer behaviour. They have been the subject of consumer research for years, for instance, linking them with customer service and customer satisfaction, or the efficacy and persuasiveness of advertisement, etc.   Moreover, values are basically the basis of one’s attitude or restriction in attitude. Some examples of values include freedom, pleasure, inner harmony, and happiness. Heroes, on the other hand, refer to icons in the society that may have an impact on people of different levels. Examples of heroes are sports figure or pop culture figures. The same goes with rituals, or symbolic activities commonly performed over and over, such as bathing, tooth brushing, attending to mass, to school, etc. Their involvement on the consumption of consumer products makes them important for consumer behaviour. Finally, symbols are equally important because different cultures have different symbols that they favor i.e. language, logos, signs, etc (2001).   But despite the economic and technological conditions that make it possible now to promote products and services in a larger consumer market, there are other factors that still need to be considered for a business organization to reach out easier to their target market. Looking into the characteristics and thought processes of the people still holds as the most significant factor to be looked into by the individuals in the field of sales and marketing. The large scope of market can pose a hindrance to a successful marketing strategy in terms of over generalized definition of the target or niche market.   Of all the components of a marketing plan, the most essential of all these elements but most often, the most overlooked is the definition of the target market. And yet, no one can proceed to a communication plan without answering the question of who do the company have to convince to buy the product or service. Business firms invest on researches that will define their target customer groups that they believed they could serve best. Every business person is determined to know what kind of work they would and would not do for their customers and, in turn, they carefully learn how to fulfil the needs of each kind of customer in their target markets.   DigiPlaza caters to clients and customers that can be categorized according to economic, social, cultural and psychological orientation. Distinguishingly, the store normally serves individuals who are employed and can afford high-end electronic appliances and gadgets. Aside from homeowners, be it a case of independently living individuals or a person who attends to the needs of his or her own family, business establishments are also welcomed in the store since we have products that can be of office use. Generally our clients are socially connected people who value communication with friends, family and even business contacts. This is evident in the large sale in terms of mobile communication gadgets. Younger customers are also welcomed in DigiPlaza since a lot of teenagers and students are inclined to personal ownership of computers as well as music gadgets and technologies like mp3s. The range of designs that our products are characterized with caters to the different personality of our clients. This includes the variety of aesthetics and functional features of the products available for purchase.           Retailing Strategies The latest study says that 70% of all decisions and choices to purchase a product come up when the customers are still in the store shopping. So it means that customers go through the so-called impulsive buying.  This alone gives the idea that retailers should seek new ways on how to cope up with the current trends in retail.  Lately, the globalization of retailing has made a strong impact on the profitable structure of municipalities in the entire nation. New format retailing has made a significant change in the retail sector (1998). In the case of DigiPlaza, the entertaining and head-turner displays which passers-by can see through the glass walls of the store attract the customers and clients. We entertain inquiries of all possible clients that enter the store as guided by the fact excellent customer care will add value to the total image of the store.   (1998) cited that performance outcomes are a function of many variables that includes owner behaviours, individual owner characteristics and environmental influences. Increasingly sophisticated consumers have higher needs and expectations, particularly in retailing.  This is an outcome of the new demands of smart shoppers, more so with the, new standards in communication, an invasive advertising, and the extras of just about everything – except the time.  The consumers’ common citation now is “I want it better, cheaper, easier, faster, and now” and if his/her demands can’t be meet they won’t stick time to stay to one establishment but rather go to a lot of other alternatives (2004). In this case, DigiPlaza makes it a point to employ staff and personnel that have long-standing experience and expertise in the field of electronics and communications in order to meet the expectations of the customers in terms of service. They are all well-trained to answer all the possible questions of the clients regarding the products that the store offers.   Since marketing strategies in operation, strategies for product/service differentiation from competitors and on how the business compete in the market for price and product supply serves a big factor in determining the success of each retail businesses (1993), DigiPLaza constantly meet the demands of consumers as the new forms of retailing support the demands of the increasing needs of every consumer. It is very essential for the management to quickly evaluate the channel strategy to guarantee that the store is in a position to sustain and grow its share of market and stay competitive.     Conclusion Companies now face the challenge of making its target consumers respond accordingly to their marketing efforts. As such, it is always important to know the characteristics and nature of the products and services offered by any advertising campaign because this will guarantee the success of the marketing strategy. But knowing the product alone can be detrimental any marketing plan if the management themselves have no idea of the characteristics of their target market. The products or services should always be in synch with the tastes, lifestyle, economic status and purchasing power of the target market. Too much generalisation about the target clients may post danger on the success of the company.     Credit:ivythesis.typepad.com

Understanding Value – Buyer Behaviour and Segmentation of an Electrical Appliance Retail Company (1,493 words)

Understanding Value – Buyer Behaviour and Segmentation of an Electrical Appliance Retail Company (1,493 words) Introduc...

Marketing strategy

Marketing strategy   Q1) As a marketing manager of prestige department store Please provide : 1) the segmentation of this department store 2) the target consumer of this department store 3) Positioning of this department store 4) Product strategy of this department store 5) Marketing Mix of this department store Total 600 words require for Q1   Segmentation. This fully recognizes that buyers of any product or service category need, desire, want and expect different performance characteristics from products or services in the category. It helps the company to position the product properly and prepare marketing strategies to satisfy a more focused range of consumer needs and wants. Furthermore, it is also a factor in effectively using limited marketing resources, identifying unique market niches, improving profitability and helping to retain consumer loyalty. The basis for the market categorizations of clients and customers include the (1) demographic characteristics, (2) the geographical location, (3) consumer behavior, and (4) psychographic characterizations. In the case of the department store, market segmentation is highly evident in the product and services categorizations within the store that cater to all individuals.   Target Customer. Companies now face the challenge of making its target consumers respond accordingly to their marketing efforts. Those who understand its consumers’ responses will have a great competitive advantage. As such, the department store targets groups of individuals that practically spends most of their time together in order to attract large units of customers. These groups of individuals include families, friends, classmates, work colleagues, and couples that elicit relatively higher purchase of items and services offered in the store.    Positioning. In its continuing quest to properly address the needs of their various customers when and where they want it, the department store is undoubtedly a whole mall in itself.  Everything is literally found in one roof.  No longer limited to grocery items, it offers services that would allow a customer to avail of everything in one stop.  Besides the extra selling of books, CDs, digital music, videos, flowers, games, gardening, gas, holidays and flights, they also provide financial services (e.g. credit cards, loans, mortgages, savings) insurance services (e.g. car, home, life, travel) telecoms services (e.g. Internet, home and mobile phone) and healthy living services. The store is considered a one stop shop retail outlet that it caters to every market segment in the country.   Product Strategy. Customer loyalty is not a one-sided arrangement with the company reaping all the benefits. The customers also expect to be rewarded for patronizing the company. Aside from assuring customer satisfaction, the company also has to devise certain strategies that will make the regular customers buy more or try new products. Some of the examples are the following: sampling, discount coupons, rebates, price-off, bonus packs, sample packs, special packs, premiums, free trial, warranty, prizes, patronage card/reward, contests and personality. Discount and club cards have been a strategy to developed similar loyalty schemes in order to identify and stimulate brand awareness. These database marketing and loyalty programs, the ultimate promotion strategies for the retailer are powerful, highly segmented customer-oriented forms of promotions, encouraging customer retention and purchase activation.   Marketing Mix. Customer satisfaction is the primary aim of marketing. In focusing on the future, the enterprise ensures the best possible chance of attaining long-term stability and competitive standing. The marketing mix of the company is not solely focused on the knowing the needs of the customers, but the company is also extending effort in knowing its customers more through the establishment of a better customer care and consulting services. The creation of the marketing mix is intended for the purpose of insuring the achievement of various corporate goals such as profit, volume, image, reputation and return on investment through the satisfaction of the consumers’ wants and needs. It results in the total bundle of utilities actually purchased by consumers in selecting products and services, and it is concerned with such factors as price, design, advertising, packaging and distribution channels.     Q2) Hong Kong Disney and Hong Kong Ocean Park has different Consumer Behavior and Market, please define. Total 600 words require for Q2   Along with the intense marketing nowadays, firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful. Strategies are carefully planned and executed to gain the ultimate goal of all: company growth.   Consumer Market Consumers around the world are different in various factors such as age, income, education level and preferences which may affect the way they avail of goods and services. For the business people and the people in the field of advertising and marketing, the product or service being offered could be a good start in planning and executing an effective campaign. Knowing the product and its demands in the market as well as the people who will likely avail and take advantage of the offer will open the possibilities for a campaign that will be most ideal in the market.   The value and importance of customers is not something that should be set aside by companies. Marketing plans and strategies would be incomplete without paying much consideration to the customers. Customers will and should always be a part of the agenda in any marketing plan of any company. Because of the implications for profitability and growth, customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic advantage and survive in today’s ever increasing competitive environment (1999).   In the case of Ocean Park and Disneyland, their consumer market tends to overlap due to similar market characteristics such as age since both establishments cater to children. However, the differing attractions that Ocean Park and Disneyland offers operate as the defining market classification of the groups of people who visit both establishments.     Consumer Behavior  Looking into the characteristics and thought processes of the people still holds as the most significant factor to be looked into by the individuals in the field of sales and marketing. The large scope of market can pose a hindrance to a successful marketing strategy in terms of over generalized definition of the target or niche market. According to  (2001), consumer buying behavior refers to the buying behavior of the individuals and households who buy the goods and services for personal consumption. This behavior then impacts how products and services are presented to the different consumer markets. There are many components which influence consumer behavior namely: cultural, social, personal and psychological (2001).   Consumers can either be subjective or objective, testing the persuasiveness of brand names. Retail stores selling the products also play an important role in swaying the decisions of consumers. The whole package or visual appeal of the retail outlet can determine sales, or the service of the sales ladies or the clerks. Furthermore, consumers may choose particular products/brands not only because these products provide the functional or performance benefits expected, but also because products can be used to express consumers’ personality, social status or affiliation (symbolic purposes) or to fulfill their internal psychological needs, such as the need for change or newness (emotional purposes) (2002). These are just some of the factors that affect consumer behavior. They have been the subject of consumer research for years, for instance, linking them with customer service and customer satisfaction, or the efficacy and persuasiveness of advertisement, etc.               Differentiating the consumer behaviors of the markets of Ocean Park and Disneyland leads to more detailed definition and analysis of the demographic background of their respective market. These include the intent, motivation, interests, and lifestyle of the specific type of people that choose Ocean Park over Disneyland and vice versa.     Q3 Marketer of a chain convenience store in HK, please analyze that key factors which affect your marketing strategy Total 600 words require for Q3 Total 3 question=1800 words   Companies now face the challenge of making its target consumers respond accordingly to their marketing efforts. Those who understand its consumers’ responses will have a great competitive advantage ( 2001). Since the market for chain convenience store is in the international orientation, the management as well as the advertisers should keep in mind the differences that are distinct between and among the target market from different cultural backgrounds which significantly affect the effectiveness of the campaign. The fact is, there may be ideas that will not be applicable across the diverse target market population. Studies on the relationship of consumer behavior and their personal values and cultural orientation as well as their beliefs on certain principles, the dispositions they hold and side they take on political, gender and social problems and issues should be duly accorded.   Culture influences behavior through its manifestations: values, heroes, rituals, and symbols (2001). The combination of both etic and emic perspective on the manifestations, can basically reveal culture’s strong relation with customer behavior. The etic philosophy is based on the definition of culture as “the collective programming of the mind which distinguishes the members of one group or category of people from another’’ (Hofstede, 1997). On the other hand, the emic philosophy stresses upon understanding issues from the perspective of the subjects being studied (Luna and Gupta, 2001). As cited from McCracken (1988), this philosophy determines the coordinates of social action and productive activity, specifying the behaviors and objects that issue from both.   Values are basically the basis of one’s attitude or restriction in attitude. Some examples of values include freedom, pleasure, inner harmony, and happiness. Heroes, on the other hand, refer to icons in the society that may have an impact on people of different levels. Examples of heroes are sports figure or pop culture figures.  (2001) stated that heroes may influence consumer behavior through their association with certain products and brands. The same goes with rituals, or symbolic activities commonly performed over and over, such as bathing, tooth brushing, attending to mass, to school, etc. Their involvement on the consumption of consumer products makes them important for consumer behavior. Finally, symbols are equally important because different cultures have different symbols that they favor i.e. language, logos, signs, etc (2001).   Marketing stimuli often consist of the four Ps of marketing: product, price, place and promotion while the other stimuli may include economic, technological, political and cultural factors which exist in the marketing environment. All marketing communications should be directed to a particular target. This aspect suggests that in implementing marketing communication, the company should clearly identify the targeted constituents and stakeholders, or to whom the marketing communication strategy should be directed (2002). The purpose of this aspect is for the company to create or apply communication instruments that will encourage the market to purchase or patronize the product.               Product. The management initiated product development strategies by marketing their existing products in a new market, exporting products in different areas of the region and thereby advancing opportunities of increasing market penetration and market share. Replacing or updating models such as home equipment to give the customers what they want and what they need, developed the store’s own-brand products which could be advertised strategically.   Price. Some of the ways that firms acquired cost advantages are by improving process efficiencies, gaining unique access to a large source of lower cost materials, making optimal outsourcing and vertical integration decisions, or avoiding some costs altogether. If competing firms are unable to lower their costs by a similar amount, the firm will be able to sustain a competitive advantage based on cost leadership.   Place. To expand its success in its retail operations, the convenience store made multi-million pound investments in store development in low-income areas. By linking with like-minded public and private sector organizations such as local community based organizations, colleges, and chambers of commerce, the company has opened locations in economically disadvantaged areas in Hong Kong.   Promotion. The chain of convenience store’s current approach is a long-term strategic plan that focuses on creating value to gain the lifetime loyalty of their customers which include maintaining a strong core Hong Kong business, to be as strong in non-food as food products and services, to grow internationally and to move into retailing services such as on-line shopping.   Business in our society plays a very important part in “shaping the structures of our society” and in “challenging traditional values” ( 1993). In order to understand the reason why corporations never stop from developing their business ideas and seeking ways to improve their strategic moves for the company to at least dominate the industry, it is important to know how business is being defined. Corporate competitiveness will be achieved by those companies that are successful in formulating, implementing and communicating sound global strategies. For decades, corporate strategy practitioners and academic researchers have drawn widespread attention to the importance of formulating comprehensive, sound, futuristic corporate strategies (1996). Corporate strategic success can be figured out by strategy implementation of the companies’ core objectives in order to achieve the long-term goals and mission of the organization. All these will be possible by taking into account the political, economic, social and technological variables that directly affect the business environment of the Hong retail industry in general.   Political. The non-interventionist policies that govern the citizens and foreign individuals who resides and make business transactions in Hong Kong opened the city to the complex and socio-political environment of international trading. As the world’s freest economy, Hong Kong exhibits a limitless transparency of regulation modeled on the administrative law systems of the United Kingdom, United States and other world leaders in regulatory practice especially in the areas of securities, banking and financial services regulations. This political characteristic of the region contributes to increased  clientele of the convenience store.   Economic. Considered as one of the progressive regions in Asia, Hong Kong, despite its lack of natural resources, is characterized with high per capita GDP in the world that enjoys a highly developed free market economy. Its scarce resources made the country dependent on exports produced by other countries through its extended trade importing products. This extends the opportunities as well as the threats for the convenience store in terms of extending market penetration strategies and increased number of competitors.    Social. Another dimension is to take the company’s social responsibilities seriously by supporting local charities, funding educational scholarships, and contributing to the socially relevant causes and projects that get publicity. Sustainable development efforts of the organization through environment-friendly social drives that promotes responsible waste management along with other cause-oriented social activities in communities where the company’s stores are located are likewise enhanced and supported.       Technological. The arrival of broadband internet means that more and more people will shop online – suggesting there is plenty of room in the market for the convenience store and its competitors. Service differences are likely to smooth out, making it more likely that people will choose on the basis of price and brand loyalty. With this, the management will need to reassess its goals as well as opt to take on a differentiation strategy by promoting unique attributes that are valued by customers and that customers perceive to be better than or different from the products of the competition   The long history and practice of people across different countries and cultural identities could be very overwhelming in the challenge that it presents to business and advertising individuals who have ambitions to take the extra mile of gaining a share of consumers and clients from varying localities abroad. Today the array of possibilities in applying the marketing strategy of international advertising is unimaginable. Instead of taking the technological barriers as hindrance and drawbacks in the international business operations because of the technological divide that cuts across the people from different social status, looking for avenues of more strategic and effective campaigns and treating such drawbacks as opportunities nay result to favorable outcomes.   Credit:ivythesis.typepad.com

Marketing strategy

Marketing strategy Q1) As a marketing manager of prestige department store Please provide : 1) the segmentation of this department ...

Marketing strategy

Marketing strategy   Q1) As a marketing manager of prestige department store Please provide : 1) the segmentation of this department store 2) the target consumer of this department store 3) Positioning of this department store 4) Product strategy of this department store 5) Marketing Mix of this department store Total 600 words require for Q1   Segmentation. This fully recognizes that buyers of any product or service category need, desire, want and expect different performance characteristics from products or services in the category. It helps the company to position the product properly and prepare marketing strategies to satisfy a more focused range of consumer needs and wants. Furthermore, it is also a factor in effectively using limited marketing resources, identifying unique market niches, improving profitability and helping to retain consumer loyalty. The basis for the market categorizations of clients and customers include the (1) demographic characteristics, (2) the geographical location, (3) consumer behavior, and (4) psychographic characterizations. In the case of the department store, market segmentation is highly evident in the product and services categorizations within the store that cater to all individuals.   Target Customer. Companies now face the challenge of making its target consumers respond accordingly to their marketing efforts. Those who understand its consumers’ responses will have a great competitive advantage. As such, the department store targets groups of individuals that practically spends most of their time together in order to attract large units of customers. These groups of individuals include families, friends, classmates, work colleagues, and couples that elicit relatively higher purchase of items and services offered in the store.    Positioning. In its continuing quest to properly address the needs of their various customers when and where they want it, the department store is undoubtedly a whole mall in itself.  Everything is literally found in one roof.  No longer limited to grocery items, it offers services that would allow a customer to avail of everything in one stop.  Besides the extra selling of books, CDs, digital music, videos, flowers, games, gardening, gas, holidays and flights, they also provide financial services (e.g. credit cards, loans, mortgages, savings) insurance services (e.g. car, home, life, travel) telecoms services (e.g. Internet, home and mobile phone) and healthy living services. The store is considered a one stop shop retail outlet that it caters to every market segment in the country.   Product Strategy. Customer loyalty is not a one-sided arrangement with the company reaping all the benefits. The customers also expect to be rewarded for patronizing the company. Aside from assuring customer satisfaction, the company also has to devise certain strategies that will make the regular customers buy more or try new products. Some of the examples are the following: sampling, discount coupons, rebates, price-off, bonus packs, sample packs, special packs, premiums, free trial, warranty, prizes, patronage card/reward, contests and personality. Discount and club cards have been a strategy to developed similar loyalty schemes in order to identify and stimulate brand awareness. These database marketing and loyalty programs, the ultimate promotion strategies for the retailer are powerful, highly segmented customer-oriented forms of promotions, encouraging customer retention and purchase activation.   Marketing Mix. Customer satisfaction is the primary aim of marketing. In focusing on the future, the enterprise ensures the best possible chance of attaining long-term stability and competitive standing. The marketing mix of the company is not solely focused on the knowing the needs of the customers, but the company is also extending effort in knowing its customers more through the establishment of a better customer care and consulting services. The creation of the marketing mix is intended for the purpose of insuring the achievement of various corporate goals such as profit, volume, image, reputation and return on investment through the satisfaction of the consumers’ wants and needs. It results in the total bundle of utilities actually purchased by consumers in selecting products and services, and it is concerned with such factors as price, design, advertising, packaging and distribution channels.       Q2) Hong Kong Disney and Hong Kong Ocean Park has different Consumer Behavior and Market, please define. Total 600 words require for Q2   Along with the intense marketing nowadays, firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful. Strategies are carefully planned and executed to gain the ultimate goal of all: company growth.   Consumer Market Consumers around the world are different in various factors such as age, income, education level and preferences which may affect the way they avail of goods and services. For the business people and the people in the field of advertising and marketing, the product or service being offered could be a good start in planning and executing an effective campaign. Knowing the product and its demands in the market as well as the people who will likely avail and take advantage of the offer will open the possibilities for a campaign that will be most ideal in the market.   The value and importance of customers is not something that should be set aside by companies. Marketing plans and strategies would be incomplete without paying much consideration to the customers. Customers will and should always be a part of the agenda in any marketing plan of any company. Because of the implications for profitability and growth, customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic advantage and survive in today’s ever increasing competitive environment (1999).   In the case of Ocean Park and Disneyland, their consumer market tends to overlap due to similar market characteristics such as age since both establishments cater to children. However, the differing attractions that Ocean Park and Disneyland offers operate as the defining market classification of the groups of people who visit both establishments.     Consumer Behavior  Looking into the characteristics and thought processes of the people still holds as the most significant factor to be looked into by the individuals in the field of sales and marketing. The large scope of market can pose a hindrance to a successful marketing strategy in terms of over generalized definition of the target or niche market. According to  (2001), consumer buying behavior refers to the buying behavior of the individuals and households who buy the goods and services for personal consumption. This behavior then impacts how products and services are presented to the different consumer markets. There are many components which influence consumer behavior namely: cultural, social, personal and psychological (2001).   Consumers can either be subjective or objective, testing the persuasiveness of brand names. Retail stores selling the products also play an important role in swaying the decisions of consumers. The whole package or visual appeal of the retail outlet can determine sales, or the service of the sales ladies or the clerks. Furthermore, consumers may choose particular products/brands not only because these products provide the functional or performance benefits expected, but also because products can be used to express consumers’ personality, social status or affiliation (symbolic purposes) or to fulfill their internal psychological needs, such as the need for change or newness (emotional purposes) (2002). These are just some of the factors that affect consumer behavior. They have been the subject of consumer research for years, for instance, linking them with customer service and customer satisfaction, or the efficacy and persuasiveness of advertisement, etc.               Differentiating the consumer behaviors of the markets of Ocean Park and Disneyland leads to more detailed definition and analysis of the demographic background of their respective market. These include the intent, motivation, interests, and lifestyle of the specific type of people that choose Ocean Park over Disneyland and vice versa.     Q3 Marketer of a chain convenience store in HK, please analyze that key factors which affect your marketing strategy Total 600 words require for Q3 Total 3 question=1800 words   Companies now face the challenge of making its target consumers respond accordingly to their marketing efforts. Those who understand its consumers’ responses will have a great competitive advantage (2001). Since the market for chain convenience store is in the international orientation, the management as well as the advertisers should keep in mind the differences that are distinct between and among the target market from different cultural backgrounds which significantly affect the effectiveness of the campaign. The fact is, there may be ideas that will not be applicable across the diverse target market population. Studies on the relationship of consumer behavior and their personal values and cultural orientation as well as their beliefs on certain principles, the dispositions they hold and side they take on political, gender and social problems and issues should be duly accorded.   Culture influences behavior through its manifestations: values, heroes, rituals, and symbols ( 2001). The combination of both etic and emic perspective on the manifestations, can basically reveal culture’s strong relation with customer behavior. The etic philosophy is based on the definition of culture as “the collective programming of the mind which distinguishes the members of one group or category of people from another’’ ( 1997). On the other hand, the emic philosophy stresses upon understanding issues from the perspective of the subjects being studied (2001). As cited from  (1988), this philosophy determines the coordinates of social action and productive activity, specifying the behaviors and objects that issue from both.   Values are basically the basis of one’s attitude or restriction in attitude. Some examples of values include freedom, pleasure, inner harmony, and happiness. Heroes, on the other hand, refer to icons in the society that may have an impact on people of different levels. Examples of heroes are sports figure or pop culture figures.  (2001) stated that heroes may influence consumer behavior through their association with certain products and brands. The same goes with rituals, or symbolic activities commonly performed over and over, such as bathing, tooth brushing, attending to mass, to school, etc. Their involvement on the consumption of consumer products makes them important for consumer behavior. Finally, symbols are equally important because different cultures have different symbols that they favor i.e. language, logos, signs, etc ( 2001).   Marketing stimuli often consist of the four Ps of marketing: product, price, place and promotion while the other stimuli may include economic, technological, political and cultural factors which exist in the marketing environment. All marketing communications should be directed to a particular target. This aspect suggests that in implementing marketing communication, the company should clearly identify the targeted constituents and stakeholders, or to whom the marketing communication strategy should be directed (2002). The purpose of this aspect is for the company to create or apply communication instruments that will encourage the market to purchase or patronize the product.   The long history and practice of people across different countries and cultural identities could be very overwhelming in the challenge that it presents to business and advertising individuals who have ambitions to take the extra mile of gaining a share of consumers and clients from varying localities abroad. Today the array of possibilities in applying the marketing strategy of international advertising is unimaginable. Instead of taking the technological barriers as hindrance and drawbacks in the international business operations because of the technological divide that cuts across the people from different social status, looking for avenues of more strategic and effective campaigns and treating such drawbacks as opportunities nay result to favorable outcomes.   Credit:ivythesis.typepad.com

Marketing strategy

Marketing strategy Q1) As a marketing manager of prestige department store Please provide : 1) the segmentation of this department ...

Deutsche Post World Net (DPWN) Strategic Management

Deutsche Post World Net (DPWN) Strategic Management   Introduction Business administration and management characterizes the process of leading and directing the systems within an organization by exhausting available resources extensively so as to achieve the objectives of the business operation. It most of the time includes the conceptualization of business plans and monitoring its execution for assessment and evaluation of the efficiency and effectiveness of the business transactions. Strategic management is the process of identifying and enumerating the aims of the organizations in order to come up with sound business policies and plans from which the profit of the business organization will be fully maximized ( 1998).   The advances in technology and the fast modernization of the world, in general, opened new and very promising avenues of business opportunities not just in an individual’s locale but also abroad. A lot of business-minded individuals from different countries with different nationalities and cultural orientation have and continuously defied the geographic boundaries that exist between continents. This is evident in the growing number of internationally-operating business firms all over the world run by entrepreneurs of varying race and culture. The information man has successfully rebelled against intercontinental borders and the challenge that confronts him the most, deals with how to fit and blend in the new cultural environment in which their businesses are situated.   This paper presents critical analysis and discussions regarding the management strategies and options of the case of Deutsche Post World Net (DPWN) in line with the mail market liberalization in EU. As such, the business strategies of the company were examined along with the confounding variables that directly and indirectly affect the entire management and operations of the business enterprise.     SWOT Analysis             Strengths. Along with the mail market liberalization Deutsche Post was granted exclusive license for letters weighing up to 50 grams instead of the 100 grams allowance. This opened possibilities for a 5% increase in mail revenue of the company.  Since the restructuring and the commercialization of the formerly state-owned business was made possible through legal changes on the overall structure of the local postal system and services, the changes that transpired within the company are supported by the law. The privatization of the company highlighted the improvements in the business aspect of the organization through modern technological infrastructure to modernize the company. These technologies make it possible for the business organization to function efficiently and serve the large customer-base who depends on the energy products and services of the general public as well as the commercial establishments in the region. Extensive investments in automation and standardization of the management improved the quality of the services offered and the value of customers being served. Acquisitions, mergers and different business contracts with global operations sped up the globalization initiatives of the company.   Since the operations and projects initiated by the company are conducted and facilitated following the international standards, the products and services it offers are controlled and monitored with the aim to maintain quality and reliability through the certifications that the organization was able to earn.               Weaknesses. However, the mail market liberalization resulted to increased number of competitors in the domestic as well as in the international mail market as entry of new firms into some postal activities along with finance and telephony services emerged which are characterized with privatization and competition. The changes in technology and consumer needs allowed greater market segmentation in line with logistics and express developments. Moreover, the wide array of services that the company is engaged in makes the management of the whole enterprise cumbersome. The Press Distribution mail subdivision of the company was reported to lag in terms of earnings and productivity compared to the other mail subdivisions which include the mail communication, direct marketing, value added services, and mail international that illustrated contributions to increased operational efficiency and productivity of Deutsche Post. Furthermore, the Postal Act of Germany included the expiration term of the exclusive license enjoyed by Deutsche by the end of the year 2007.      Opportunities. With the mail market liberalization in EU, Deutsche Post was provided with opportunities for international mail market penetration across the entire European region. This means increased number of customers for better profitability and revenues not just in the financial, express, and logistics market of the company but more security on its mail division. The prospect of engaging and investing in various productive research initiatives and development endeavors will generate the company large return of investment. The company’s high asset value and economic worth may serve as a good compensation for development efforts of the organization to support and secure long-term plans and strategies. The success of these researches and development efforts will contribute to the business organization’s competitive advantage in the state energy industry. With the advances in technology, Deutsche Post can continue its investments on modernization to improve and broaden the available services as well as the customer satisfaction among the clientele through increased service quality and customer value. This could likely result to continuous increase of profit and revenues from the company’s mail subdivisions and the needed improvement for the Press Subdivision to earn competitiveness for the benefit of the entire business operation.      Threats. Existence of new market competitors addresses the possibility of better operations strategy from other companies in the mail industry as the major intimidation to Deutsche Post. This highly threatens the entire effectiveness of the operations utilized by the company in addressing the needs of their customers. As such, business relations among customers and suppliers demands strategic selection of business options. Moreover, the development efforts and research initiatives and projects that the company invest in order to maintain continuous operation and competitive position call for wise selection of business opportunities as well as skilled leadership and risk management skills among its decision-makers.   Situational Analysis and Strategic Options             PEST Analysis. In relation to the liberalization of the mail market across the member countries of the European Union, the political trends and characteristics illustrate a high probability of initiating the full implementation of the free market structure for the mail market. This is in line with the successful liberalization of other goods and services across Europe in order to eliminate economic frontiers between economies. The fulfillment of the mail liberalization initiative is expected to result to increase of real potential competition among business firms involved in the mail industry for the EU to experience (a) general decrease on the prices of the services offered, (b) greater quality of products and services variation, and (c) continuous innovation and development in product designs, services methods, as well as in production and distribution systems. As such the company could take advantage of its position as one of the leading most competitive mail companies in the region to increase efficiency and productivity as well as customer satisfaction.    The economic situation of the Union has long been characterized with highly active and dynamic exchange of goods and services through increased participation of business firms in line with the globalization trends. Contract management and outsourcing strategies have been the result of the complex and sophisticated demands of the market and the objectives of business companies to offer excellent customer value through quality products and services. Generally, the Union’s international market consist competitive and innovative businesses that are interconnected through partnerships and agreements. In this regard, Deutsche Post can develop further its diversification initiatives particularly in establishing chains of operations. Labor could be outsourced to cut expenditures and create opportunities for service innovation to strengthen the quality of the services offered   The economic description of the region is reflective of the present socio-cultural trends that characterize its people. As active consumers of products and clients of services, the market was provided with the continuous supply of products and services that meets the complex needs and ever-changing requirements and specifications of the public. With the technological infrastructure that characterizes the operations of Deutsche Post, service quality and customer value and satisfaction can be increased. The services of the company should be in synch with the sophisticated lifestyle of the people through creating means of more efficient service delivery and innovative logistics.        These market demands include quality, efficiency, and customer satisfaction. This further resulted to trends in technological advancement particularly on production and delivery of products and services to meet customer requirements and to increase the productivity and revenue of the businesses. Technological advancements in the form of effective tracking and monitoring equipment of the goods and services being delivered, heightened security efforts, and the utilization of the electronic media to transact highly demanded services online should be considered by the company to adapt with the modern social setting it operates in and meet the needs of the customers.                             Five Forces Model. Every company that depends on the services and materials from key suppliers need to be sensitive on the variables that are highly important and considered by the suppliers. These include the suppliers’ concentration or their focus and core business interests, variety of products, design and services offered, and the alternative resources that are available. In this light, it is most appropriate to build win–win relationships with suppliers or arrange the use multiple suppliers in order to protect the interests of both ends. In the case of Deutsche Post, suppliers can be identified in the contracts and agreements made by the company with providers of materials and labor force. The outsourced services of the company which consist the technical support team and the customer services that are highly relevant in the effective business operation of the firm. As such, good relationship with companies that provides such service needs of Deutsche Post should be maintained.      The power of buyers describes the impact customers have on an industry. When buyer power is strong, the relationship to the producing industry becomes closer to market conditions wherein the buyer has the most influence in determining the price. As such the bargaining power of buyers increases when they have the ability to (a) make agreements with other companies providing similar products and services, (b) purchase a product that represents a significant fraction of the expenses incurred by the company, (c) purchase of a product that is undifferentiated, (d) incur low changes in costs when they change vendors, (e) be price sensitive by bearing in mind the options available, and (f) integration to purchase the goods of the suppliers. The power of buyers can be effectively illustrated using the Press Distribution subdivision of the company. The company’s contract magazine and newspaper providers directly influence the service offers of Deutsche Post in order to keep them as loyal customers of the company. As such, the management should be capable of maintaining the trust and confidence of this particular clientele for increase profit and revenue.      The possibility of new companies entering the industry influences the pace of the competition. Thus, the key is to evaluate the methods of entry and exit for a new player to the industry. Although any company should be able to enter and exit the sector, each industry presents different levels of difficulty influenced by economics. These unique characteristics of the each industry are referred to as barriers to entry which may come from different aspects of the business ranging from supplies to technology. They seek to reduce the rate of entry of new entrants which leads to maintenance of a level of profits for the existing players. Deutsche Post is highly competitive that serves as threat to other businesses that seek to venture in the mail industry. But the innovative drive and technological capability of new firms to set out in the industry could take some of the market share of the company. If put together, the number of existing competitors and new entrants that are equipped with aggressive business motivations can threaten the company.       Substitutes as the products and services available in other industries which meet identical or similar need for the end user. As more substitutes become available and affordable, the demand becomes more elastic since customers have more alternatives. The treat of substitutes often impacts price-based competition since substitute products may limit the ability of firms within an industry to raise prices and improve margins. Other concerns in assessing the threat of substitutes include the presence of new technologies that can contribute to competition though more diverse and economical substitute products and services. A segment is unattractive when there are actual or potential substitutes for a product. In the case of the mail industry, the electronic mail and the short messaging system through the Internet and the mobile communication technologies such as cellular phones serve as substitutes to the services offered by Deutsche Post. Even the distribution of periodicals and newspapers are highly accessible in the Internet at any time of the day. As such, counter measures should be conceptualized to maintain the existence of customers’ needs to avail the services offered by the company.   Firms strive to secure a competitive advantage over their rivals or competitors. The intensity of rivalry varies within each industry and these differences can be important in the development of strategy. Industries that are “concentrated,” versus “fragmented,” often display the highest level of rivalry. In pursuing an advantage over its rivals, a firm can choose from several competitive moves: (a) changing prices, (b) improving product differentiation, (c) creatively using channels of distribution, and (d) exploiting relationships with suppliers. Deutsche Post may consider these options to maintain its competitive edge in the European mail market.   Value Chain Management.  Firms respond to conditions in their marketplaces by modifying their competencies such as internal capabilities and linkages with suppliers and associates and the ways in which they position themselves in relation to their competitors specifically their strategic direction (1999; 1990). Each of these components is intricately related and ultimately contributes to firm competitive advantage. Hence, understanding the value chains involved in producing these products and services is the best approach to building the value of the enterprise. Value-chain analysis looks at every step a business goes through, from raw materials to the eventual end-user. The goal is to deliver maximum value for the least possible total cost.    The value chain also is useful in outsourcing decisions.  Understanding the linkages between activities can lead to more optimal make–or–buy decisions that can result in either a cost advantage or a differentiation advantage. The goal of these activities is to create value that exceeds the cost of providing the product or service, thus generating a profit (2000). In the case of Deutsche Post, the entire operation of the business should be examined and evaluated ion order to determine the service delivery processes that strengthen as well as weaken the business. This will result to managerial options to eliminate the liabilities that detract the business or the need to developed and intensify some aspects of the operations.    Corporate Level Strategies.  (1996) believe that modern organizations passed by the guild structures and as organizations grew larger, skills become increasingly fragmented and specialized and positions become more functionally differentiated. Stakeholders are defined as the individuals or organizations which can either gain or lose from the success or failure of a system (2004). According to  (2000) balance between enhanced company processes and renewed objectives should be critically appraised in order to ensure the success of the company. as such, stakeholder analysis reminds management that it is important to evaluate the interests of the individuals or organizations who can influence or can be affected by the activities of the company.   For Deutsche Post, the management should be able to take means of identifying of the stakeholders, the priorities of the stakeholders; understanding of the stakeholders’ perspectives and incorporating the stakeholders’ perspectives to the future plans of the company. Moreover, the company should cultivate growing consumer markets to promote growth and development of the business organization. This will address the expansion possibilities of the organization to serve not only the locale consumers but also provide services to a larger customer base. As such international relations and the overall business practices and trends all over the world should be investigated so as to make sound decisions that will realize the goals of the company.   Furthermore, the company should continue cultivating community relations and environmental efforts to increase market visibility and improve brand strength. These will be realized through community programs that will advertise the humanitarian causes of the company in the form of public releases. Charity and scholarship programs are good examples for the management to promote and improve community relation. Advertising messages that translates the environmental concerns that the company shares to the public is likewise advisable to take into account and undertake.     Business Level Strategies. Service delivery is an interactive and dynamic process that from the consumer’s point of view is much more than a passive exchange of money for a particular service. Characteristics of services (e.g., intangibility, heterogeneity, simultaneity, and perishability) often require customers to be actively involved in helping to create the service value — either by serving themselves or by cooperating and often working collaboratively with service personnel. In high-contact systems customers can influence the time of demand, the exact nature of the service, and the quality of service (1978; 1979). If consumers somehow become better customers — that is, more knowledgeable, participative, or productive — the quality of the service experience will likely be enhanced for the customer and the organization (1990). In this regard, the company needs to strengthen relationship with suppliers and increase market share. This effort will result to parallel business interests that will contribute to the company as well as the suppliers’ business objectives. Contract agreements and other business transactions should present advantages and benefits for both parties. Efficient delivery of products and services through premeditated and tactical supply chain management initiatives should be prioritized.   As the nature of financial management become more and more complex in this information and efficient communication era of international business, finance managers face a wide array of challenges, opportunities and options for him or her to enhance the investing and financing activities of the organization as well as the inherent risks and circumstances of the decisions that will be made. The challenge now for companies is to explore the options and take advantage of the opportunities while taking caution in managing the risks (1999). As such, the company needs to keep operational expenses within budget to be able to devote the necessary financial resources to both exploration and marketing activities of the company. Financial management decisions that will supply for the internal and external business operations of the corporation should be closely monitored to be able to control the flow of cash. Investing on profit-generating projects as well as training-specific programs for the human resources of the company will ensure extended success.   Moreover, Deutsche Post should enhance marketing campaigns and take advantage of company control over the European mail industry competition. The company should initiate efforts to come up with sound advertising and promotional strategies that will bring the people closer. These will include projects and programs that will highlight the humanitarian mission of the company. The use of all available marketing and communications materials particularly the different forms of mass communication technologies will be necessary to realize these plans.   Lastly, there is a need to improve technological innovations to increase efficiency as well as quality of the service. This will include investments on machineries and equipment that will necessitate the increased and efficient operation of the business organization’s management system. Financial assistance on human resources particularly to knowledgeable and skilled individuals should be accorded in order to improve the overall business operation as well as the engineering, monitoring, and control aspects of the business.   Recommendations on the Legal Environment of the Latest Outcome in the EU Mail Market Because of the different laws of the countries based on the conducting of business within their soil, the regulations and the laws that the European Union enforces are part of the methods that the countries keep to ensure that each laws will be kept in each country, and will also be observed by the businesses. Private businesses are freer to quickly expand to other countries in hopes of wider chances of success, and expansion within Europe also helps these businesses in covering the continent with their presence and helping with the building of their corporation. As such, the European Union then protects these expansions within their continent, as much as also giving them the chance to find their own way when dealing with other companies. Such regulations will also be helpful for smaller companies as an insurance against services and products being monopolized by larger companies. At the same time, these will also be helpful for the larger companies in the event that they may wish to expand to other member states of Europe, or even around the globe (1987;  1998).   However, complicated and costly regulations are one of the main barriers to business growth, especially for smaller companies. The total cost of regulations introduced on British businesses since 1998 is 20.6bn euros – of which more than 40% originates from Europe. The benefits of regulation should be demonstrably greater than its cost. Yet it often seems to businesses that the cumulative burden is discounted, the dynamic effects on our competitiveness are ignored and the benefits claimed to justify the regulations are seldom quantified. As products flow more freely across national borders and regional markets grow, competition will be a key aspect of the post-1992 European market. With the pressure of new competition, some small agents and distributors may find it difficult to survive. Currently, legislation regulating the conduct of commercial agents and their principals exists in many member states. Some countries have comprehensive laws, while others depend on the contract agreed to by the parties for legal purposes. The directive addresses differences among member state laws by setting threshold requirements, which with some exceptions; member states must incorporate into their laws (1997).   Authority in the world has become an important factor for the outcome of the environment, which also serves as aids for the makings of peace in the country. Inter-country regulations are needed to ensure continued co-operation between these states; organizations or unions are then erected to ensure that peace will be kept and that certain regulations based on the countries will also be kept. The laws of the different countries must also be followed by the companies despite transferring; privatization of the companies may help with the increase of their profit and also with the trust and better services that the corporation will be able to offer for their clients. In an open market economy, effective competition is crucial.  An open market economy increases rooms for technological innovation.  For this to happen, fair play on the part of businesses and governments is essential.  The European Commission has wide powers to make sure they stick to European Union rules on fair trade in goods and services.  The main areas of competition policy are: antitrust and cartels, merger control, liberalization, state aids.   Comments on the Structure of the DPWN             DPWN is a group of companies belonging to the express and delivery industry. The Group is composed of four main divisions which include the Mail, the Express, the Logistics, and the Financial Services. The Mail Division operates under Deutsche Post, DHL for the Express and Logistics Divisions, and Postbank for the Financial Services Division. These services are managed by the assigned personnel of the Group in order to ensure that each aspect of the business is operating under the set objectives and goals of the entire business organization. These divisions characterize the entirety of the business enterprise that maintained local and international recognition through its strategic market positioning. The Groups does not only provide its customers with excellent mail, express and financial services as well as logistics solutions to its clientele but was also able to penetrate different markets around the world.         The range of services and the broad market base of the Group defined its success in the industries it caters to. The achievements of the entire business organization are made evident in its lead against the competitors of each respective division. This reflects that despite the varied types of services that the Group offers to the market, the management and staff are capable of efficiently and effectively delivering the public’s service needs. The differing cultural orientation and social setting to where the business operates did not serve as constraints to the company’s growth and development. The capability of the management to adapt to the economic, political, legal and social environments of the localities where it operates resulted to the company’s sensitiveness to the needs of socially and culturally diverse customer base which made possible further development of the companies under its name though strategic market initiatives and service innovations.   In this light, the Group can be considered as one of the few internationally renowned companies that were able effectively manage its operations despite the differing industries it is involved, the number of aggressive competitors in the said industries, the pressure to technological advancement, and the ever-increasing demands from the sophisticated clientele.                      Credit:ivythesis.typepad.com

Deutsche Post World Net (DPWN) Strategic Management

Deutsche Post World Net (DPWN) Strategic Management Introduction Business administration and management characterizes the process of ...