Archive for Digital Marketing

Relationship Networks – Customer and Supplier Networks

Posted in CRM, eMarketing, Management, Marketing Mix (New Concepts) with tags , , , , , , , on December 19, 2011 by Consultant
Selling and Marketing is no longer the same what it used to be few decades ago. Traditional methods of sales and promotions have long been relegated to history. Technology, Internet as well as globalization have redefined every aspect of Marketing and Sales. Organizations have realised the importance of being in tune with the markets and customers. They are also embarking on investing on relationship with the customers for the Relationship Management aspect is becoming very important for the success of the business. Companies are tuning in to identify and get to know the customer better and anticipate his needs for tomorrow. Customer feedback as well as needs are being seen as vital information to product innovation as well as for customer retention. Especially in the recent times where social networking is gaining ground, customer contact and relationship management is becoming more visible and instantaneous.

Organizations have realised that Relationship Marketing is not related to the marketing function alone. This concept is to be embraced at the Corporate level and implemented through all departments covering both internal as well as external customers, suppliers and other agencies that the Organization engages with.

As far as the Marketing and Sales is concerned, an Organization can be involved in multiple formats including B to B and B to C. Sales and Marketing is always a network of multi layered and multi level partners, intermediaries, vendors and agents etc. Relationship marketing aspect assumes high importance for the success of every transaction through the myriad networks. The Organization’s relationships can make or break its ultimate positioning in the market as well as affect the quality of the transaction with the end customer.

If an Organization is engaged in selling products or services to on B–C model, the dynamics of Relationship Management will be different from a B–B mode. Let us take the case of a Multi National Company engaged in manufacturing of Computers. The company would be sourcing or manufacturing at various geographical locations across the globe for supplies to different markets. It can be manufacturing at Company owned factories in different countries or using contract manufacturing partners to manufacture on their behalf. The products are transported through service providers using multi modal transportation networks and a host of agents handling the cargo movement from end to end. The products finally are sold to a whole seller or stockist or sold by the Company to the institutional buyers. There can also be cases where the company maintains its own third party warehouses and sells to the retailers. In such complex networked supply chain the Organization has got to ensure that the products are supplied timely, as per customer requirement.

The Organizations success in being able to reach its products to the customer organization timely and successfully over a long period depends upon the seamless working of the entire network. This is possible when the Organization is able to build a relationship with every stake holder in the network and make that difference. In such complex networks, the process alone will not be able to sustain the transactions and the relationship or the emotional connect with the people involved is what makes things happen. Organizations will necessarily have to invest in building strong partnerships with principle service providers and partners so that they are able to get the partners to deliver a happy experience to the end customer too.

When the customer is an institutional customer or a business, the complexities of transactions pose a challenge to the Organizations. In all such businesses the Organizations set up dedicated Key Account Relationship Managers and teams at various levels to ensure that they reach out to the customer and build relationship at multiple levels where it matters. Therefore there can be multiple levels of relationship building that one needs to engage with including at the actual user level to the procurement, technical as well as management level at the customer end. The Organizations would have to accordingly formulate a relationship management strategy and process as well as create a team to build and grow the relationship in such cases. In the end the dedicated focus and investment made into such relationships pays well in terms of future business opportunities.

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Relationship Marketing – Company and Marketing Perspective

Posted in Consumer Behavior, CRM, eMarketing, Management, Marketing Mix (New Concepts) with tags , , , , , , , , , on December 19, 2011 by Consultant
We are living in the high tech times. Technology and changing economy have changed the rules the way a business is done. Business organizations have to tune in to various markets and know the customers well. The successful companies are those who have been able to anticipate the customer need and innovate future products leveraging on technology. In a global as well as local scenario, customer holds the key to the growth of business and organizations. No wonder that when you open your mail box or your email, you are always flooded with marketing communication from all possible companies trying to build a relationship with you. Take a look at the cards in your wallet and you must be holding quite a few membership cards that make you feel privileged and keeping bringing rewards and prompting you to extend your relationship with them.

Relationship Marketing has never been more important for the Organizations as it has been now. In the field where competition is intense and life cycle of products and services is very small, customer relationship has emerged to be one of the key drivers to contribute a large chunk of sales revenue. When we talk of relationship marketing, we are not referring to customer service. Customer service refers to the quality of service on a transactional mode. By Relationship Marketing, we are referring to the level of Relationship that exists between the customer and the company.

In terms of Relationship, there can be several ways of defining or measuring the quality of relationship with the Customer. Understanding of the depth of relationship and qualifying can help the Company in improving its reach to the markets as well as work towards increasing the depth of the relationship with the customer. In the first instance, we have a happy customer who has bought the product or a service and found it satisfactory.

When the Company reaches out to communicate with him and anticipate his future needs, he can be converted to a faithful customer. A faithful customer may be a repeat customer who does continues to buy the product from the company on repeat basis without making an effort to look at alternatives. However, at this stage the customer can be influenced and be vulnerable to competition as well as price sensitivity. Relationship marketing by the Company can help convert this customer from a faithful customer to a loyal customer. A loyal customer is one who has made an informed decision to go with the particular Company, is happy with the product, is loyal to the brand and is likely to advocate the same brand to friends and family because he believes in the Product as well as the Company and values the relationship. Apart from customer service, there are several marketing programmes and loyalty programmes besides brand advertising that the Companies carry out to build the relationship with the customer.

Relationship marketing gets translated and implemented through the marketing strategies, promotional programs as well as through marketing communication programs. When implemented as a part of marketing strategy, the relationship is normally focussed on leveraging the brands and products of the Company with the customer. Besides the marketing activities, the Companies implement internal and external corporate communications too keeping in view the Customers.

Marketing strategies are required to define the relationship marketing strategies for each of the product or service category taking into account the geographies, the customer profile as well as the overall RM objective of the Company. The RM strategy in case of a product company would be different from that of a service company and the element of communication design strategy would need to be different for a product from that of a service. In case of a product, the Customer is likely to respond in terms of brand, tangible and quantifiable performance of the product and the satisfaction derived from post sales service. In case of service, however, there is no tangible product and the customer’s expectations are different when it comes to service that is mainly concentrated around his perceptions and experience.

Therefore understanding the concept of Relationship marketing, the difference between RM and Customer Service as well as the ways and means of implementing or achieving RM objectives through effective marketing strategies is important for all the marketing managers and students who are going to be the drivers to defining, planning, detailing and implementing marketing strategies. An effective Marketing Manager should be able to effectively design marketing policies and strategies that are aligned with the Company’s RM objective and help build the relationship between the Company and Customer, Partners as well as the intermediaries who are critical to one’s business.

Organizations and Types of Relationships

Posted in Consumer Behavior, CRM, eMarketing, Management with tags , , , , , , , , on December 19, 2011 by Consultant
Organizations today live in highly dynamic environments. Essentially the existence and growth of the business is dependent upon several external and internal factors such as highly segmented geographical markets, aggressive competition and shorter life cycle. These and many more factors exert a lot of pressure on the Organizations to innovate both in terms of its product offering as well as in its organizational development and ways of conducting business. Revenue and profits do form the primary basis of its business transactions. However in the long term growth perspective Organizations have got to be able to manage both external and internal relationships on the basis of the values and culture on which it is founded.

Share Holders

Gone are the days when share holders were a community content with the returns they received from the Company and went along with whatever the Managements thought good. Managements today are seen becoming increasingly answerable to the share holders.

Recently we have seen several cases where CEOs of the Companies having been voted out by the share holders for not falling in line with the thought process of the Organization and the share holders. We saw major changes in Hewlett Packard wherein the shareholders took the call to change the management and the strategic approach of the Company to business.

Organizations today exist in a situation which demands that they extend products and services as well as keep investing into building products and technology for tomorrow. If the business needs to exist and grow there is no option but to invest into the future. Therefore the shareholders take the centre stage when it comes to approval of and financing the Organisational business and growth plans. Shareholders today are aggressive demanding that the Organization walk the talk when it comes to the bottom line as well as in terms of its culture. Brands like IBM, HP and GE etc are more vulnerable to the stake holders as well as to the public as an Organization. These and other Corporate are using internet, Multimedia and websites to speak to the investors and extend the relationship with the share holders and investors. Internet platform allows the corporate open up relationship with the share holder community on an interactive basis thus giving the Company the control on how to manage the relationship as well as build investor confidence.

For Companies that are looking for investments to fuel their growth engines, there exists a need to demonstrate and cultivate the right corporate image and capability besides the past performance figures which alone will not help attract investors. Companies are therefore engage in Public relations as well as corporate communications to reach out to the prospective investor public as well as institutions to build the right kind of corporate image. Image building and relationship building become the long term strategy of the corporate communications of the Organization.

Social Responsibility

In the recent times the social responsibility and attitude of the Companies towards their responsibilities is becoming more and more visible and public. NGOs and specific interest groups are taking the lead in keeping track of and benchmarking social responsibility performance of the Corporate thus making them accountable. The brand image of the Organization is definitely affected by the way it is managing its social responsibility with the community, investors as well as policy makers being active participants as watchdogs.

Organizations have had to engage with the communities by way of participative activities as well as using communication strategies and by maintaining and managing relationship to be able to get across the right perspective as well as the right information. The recent example of GAP having had to withdraw from sourcing clothing from Indian Companies and suppliers who engaged child labour in the production lines is an ideal example which showcased the power of the community and the stake holders forcing the Company to take immediate action and use its relationship to project the right image for itself. The recent oil spill of BP in the west coast is another ideal case for study of how BP manages the relationship with the Govt, with its share holders, with the affected communities as well as manage its social responsibility.

Meaning and Scope of Marketing Research

Posted in Brand Managment, Consumer Behavior, Management, Marketing Mix (New Concepts) with tags , , , on December 10, 2011 by Consultant
According to American Marketing Association, “Marketing Research is the function that links the consumer, customer and public to the marketer through information-information used to identify and define marketing opportunities and problems, generate, refine and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.” 

Marketing Research is systematic problem analysis, model building and fact finding for the purpose of important decision making and control in the marketing of goods and services.

Marketing Research is a well-planned, systematic process which implies that it needs planning at all the stages. It uses scientific method. It is an objective process as it attempts to provide accurate authentic information. Marketing Research is sometimes defined as the application of scientific method in the solution of marketing problems.

Marketing Research plays a very significant role in identifying the needs of customers and meeting them in best possible way. The main task of Marketing Research is systematic gathering and analysis of information.

Before we proceed further, it is essential to clarify the relationship and difference between Marketing Research and Marketing Information System (MIS). Whatever information are generated by Marketing Research from internal sources, external sources, marketing intelligence agencies-consist the part of MIS.

MIS is a set of formalized procedures for generating, analyzing, storing and distributing information to marketing decision makers on an ongoing basis.

  1. While Marketing Research is done with a specific purpose in mind with information being generated when it is conducted, MIS information is generated continuously.
  2. MIS is continuous entity while Marketing Research is a ad-hoc system.
  3. While in Marketing Research information is for specific purpose, so it is not rigid; in MIS information is more rigid and structured.

Marketing Research is essential for strategic market planning and decision making. It helps a firm in identifying what are the market opportunities and constraints, in developing and implementing market strategies, and in evaluating the effectiveness of marketing plans.

Marketing Research is a growing and widely used business activity as the sellers need to know more about their final consumers but are generally widely separated from those consumers. Marketing Research is a necessary link between marketing decision makers and the markets in which they operate.

Marketing Research includes various important principles for generating information which is useful to managers. These principles relate to the timeliness and importance of data, the significance of defining objectives cautiously and clearly, and the need to avoid conducting research to support decisions already made.

Marketing Research is of use to the following:-
  1. Producers
    1. To know about his product potential in the market vis-à-vis the total product;
    2. New Products;
    3. Various brands;
    4. Pricing;
    5. Market Structures and selection of product strategy, etc.
  2. Business and GovernmentMarketing Research helps businesses and government in focusing attention on the complex nature of problems faced by them. For example:
    1. Determination of Gross National Product; Price indices, and per capita income;
    2. Expenditure levels and budgeting;
    3. Agricultural Pricing;
    4. The economic policies of Government; and
    5. Operational and planning problems of business and industry.
  3. Market Research AgenciesMarketing Research is being used extensively by professionals to help conducting various studies in Marketing Research. Most prominent agencies being:-
    1. Linta India Ltd;
    2. British Market Research Bureau (BMRB);
    3. Hindustan Thompson Associate Ltd;
    4. eSurveysPro.com;
    5. MARG

Posted in Consumer Behavior, CRM, eMarketing, Management with tags , , , , , , , , , on December 1, 2011 by Consultant

Self Motivation at Work

Self-motivation is a power that drives us to keep moving ahead. It encourages continuous learning and success, whatever be the scenario. Self-motivation is a primary means of realizing our goals and progressing. It is basically related to our inventiveness in setting dynamic goals for ourselves, and our faith that we possess the required skills and competencies for achieving those challenging goals. We often feel the need for self-motivation.

Following are the ways/techniques for self-motivation:

Communicate and talk to get motivated: Communicating with someone can boost up your energy and make you go on track. Talk with optimistic and motivated individuals. They can be your colleagues, friends, wife, or any one with whom you can share your ideas.
Remain optimistic: When facing hurdles; we always make efforts to find how to overcome them. Also, one should understand the good in bad.
Discover your interest area: If you lack interest in current task, you should not proceed and continue with it. If an individual has no interest in the task, but if it is essential to perform, he should correlate it with a bigger ultimate goal.
Self-acknowledgement: One should know when his motivation level is saturated and he feels like on top of the world. There will be a blueprint that once an individual acknowledge, he can proceed with his job and can grow.
Monitor and record your success: Maintain a success bar for the assignments you are currently working on. When you observe any progress, you will obviously want to foster it.
Uplift energy level: Energy is very essential for self-motivation. Do regular exercises. Have proper sleep. Have tea/coffee during breaks to refresh you.
Assist, support and motivate others: Discuss and share your views and ideas with your friends and peers and assist them in getting motivated. When we observe others performing good, it will keep us motivated too. Invite feedback from others on your achievements.
Encourage learning: Always encourage learning. Read and grasp the logic and jist of the reading. Learning makes an individual more confident in commencing new assignments.
Break your bigger goals into smaller goals: Set a short time deadline for each smaller goal so as to achieve bigger goal on time.

 

Posted in B2B, Brand Managment, Consumer Behavior, CRM, eMarketing, Management, Marketing Mix (New Concepts) with tags , , , , , , , , , on December 1, 2011 by Consultant

Maslow’s Need Hierarchy Model

Human behavior is goal-directed. Motivation cause goal-directed behaviour. It is through motivation that needs can be handled and tackled purposely. This can be understood by understanding the hierarchy of needs by manager. The needs of individual serves as a driving force in human behaviour. Therefore, a manager must understand the “hierarchy of needs”. Maslow has proposed “The Need Hierarchy Model”.

Self-actualization Needs
Esteem Needs
Social Needs
Security Needs
Physiological Needs

FIGURE – Maslow’s Need Hierarchy Model

The needs have been classified into the following in order:

  1. Physiological needs- These are the basic needs of an individual which includes food, clothing, shelter, air, water, etc. These needs relate to the survival and maintenance of human life.
  2. Safety needs- These needs are also important for human beings. Everybody wants job security, protection against danger, safety of property, etc.
  3. Social needs- These needs emerge from society. Man is a social animal. These needs become important. For example- love, affection, belongingness, friendship, conversation, etc.
  4. Esteem needs- These needs relate to desire for self-respect, recognition and respect from others.
  5. Self-actualization needs- These are the needs of the highest order and these needs are found in those person whose previous four needs are satisfied. This will include need for social service, meditation.

Posted in B2B, Brand Managment, Consumer Behavior, CRM, eMarketing, Management, Marketing Mix (New Concepts), Search Engine Optimization with tags , , , , , , , , , , on December 1, 2011 by Consultant

Disadvantages of Planning

Internal Limitations

There are several limitations of planning. Some of them are inherit in the process of planning like rigidity and other arise due to shortcoming of the techniques of planning and in the planners themselves.

  1. Rigidity
    1. Planning has tendency to make administration inflexible.
    2. Planning implies prior determination of policies, procedures and programmes and a strict adherence to them in all circumstances.
    3. There is no scope for individual freedom.
    4. The development of employees is highly doubted because of which management might have faced lot of difficulties in future.
    5. Planning therefore introduces inelasticity and discourages individual initiative and experimentation.

     

     

  2. Misdirected Planning
    1. Planning may be used to serve individual interests rather than the interest of the enterprise.
    2. Attempts can be made to influence setting of objectives, formulation of plans and programmes to suit ones own requirement rather than that of whole organization.
    3. Machinery of planning can never be freed of bias. Every planner has his own likes, dislikes, preferences, attitudes and interests which is reflected in planning.

     

     

  3. Time consuming

     

    1. Planning is a time consuming process because it involves collection of information, it’s analysis and interpretation thereof. This entire process takes a lot of time specially where there are a number of alternatives available.
    2. Therefore planning is not suitable during emergency or crisis when quick decisions are required.

     

     

  4. Probability in planning
    1. Planning is based on forecasts which are mere estimates about future.
    2. These estimates may prove to be inexact due to the uncertainty of future.
    3. Any change in the anticipated situation may render plans ineffective.
    4. Plans do not always reflect real situations inspite of the sophisticated techniques of forecasting because future is unpredictable.
    5. Thus, excessive reliance on plans may prove to be fatal.

     

     

  5. False sense of security
    1. Elaborate planning may create a false sense of security to the effect that everything is taken for granted.
    2. Managers assume that as long as they work as per plans, it is satisfactory.
    3. Therefore they fail to take up timely actions and an opportunity is lost.
    4. Employees are more concerned about fulfillment of plan performance rather than any kind of change.

     

     

  6. Expensive
    1. Collection, analysis and evaluation of different information, facts and alternatives involves a lot of expense in terms of time, effort and money
    2. According to Koontz and O’Donell, ’ Expenses on planning should never exceed the estimated benefits from planning. ’

     

External Limitations of Planning

  1. Political Climate- Change of government from Congress to some other political party, etc.
  2. Labour Union- Strikes, lockouts, agitations.
  3. Technological changes- Modern techniques and equipments, computerization.
  4. Policies of competitors- Eg. Policies of Coca Cola and Pepsi.
  5. Natural Calamities- Earthquakes and floods.
  6. Changes in demand and prices- Change in fashion, change in tastes, change in income level, demand falls, price falls, etc.