...1 Marketing & Sales Practice The consumer decision journey Consumers are moving outside the purchasing funnel—changing the way they research and buy your products. If your marketing hasn’t changed in response, it should. David Court, Dave Elzinga, Susan Mulder, and Ole Jørgen Vetvik If marketing has one goal, it’s to reach consumers at the moments that most influence their decisions. That’s why consumer electronics companies make sure not only that customers see their televisions in stores but also that those televisions display vivid high-definition pictures. It’s why Amazon.com, a decade ago, began offering targeted product recommendations to consumers already logged in and ready to buy. And it explains P&G’s decision, long ago, to produce radio and then TV programs to reach the audiences most likely to buy its products—hence, the term “soap opera.” David Court is a director in McKinsey’s Dallas office, Dave Elzinga is a principal in the Chicago office, Susie Mulder is a principal in the Boston office, and Ole Jørgen Vetvik is a principal in the Oslo office. Marketing has always sought those moments, or touch points, when consumers are open to influence. For years, touch points have been understood through the metaphor of a “funnel”—consumers start with a number of potential brands in mind (the wide end of the funnel), marketing is then directed at them as they methodically reduce that number and move through the funnel, and at the end they emerge with the one...
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...international scope, from selling one type of Coca-Cola product in United State to selling over 500 different products in the global beverage market, it has been doing a very good job which allow Coca Cola to be the world’s largest beverage company today. THE COCA-COLA COMPANY - Coca Cola is the world’s largest beverage company which manufactures beverage concentrates and syrup to their franchised bottlers who make and deliver the final bottle drink to the market. The Coca-Cola Company was established in 1892 by Asa Candler. Besides the main product Coca-Cola coke, the company currently produces over 500 brands of other beverages and sells to more than 200 countries all over the world. Coca-Cola’s mission is to refresh the world, inspire moments of optimism and happiness and to create and make a difference. THE GLOBAL BEVERAGE INDUSTRY - The global beverage industry is made up of manufacturer of carbonated soft drinks, juices, functional drinks and bottled water. Coca Cola Enterprises remains the market leader of the industry over the years. The industry has been recorded in growing revenue and consumption. Although there is average growth in...
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...Patrick B. Reijnders, Christian Darryll A. Assong, Michael Roger G. Saxton and Leilani De Guzman Abstract Customer experience creates competitive advantage in terms of the customer, the staff and the travel agency. Thus, the critical importance of customer experience must be addressed to increase the potential of travel agencies for improving their business and leisure client’s experiences. Hence, the study analyzed the factors of product experience, outcome focus, moments of truth and peace of mind as constructs of the customer experience quality that possibly impact on customer satisfaction. The researchers probed on the data generated from consumer’s perspective and answers to assess the relationship of the customer experience juxtaposed to customer satisfaction. Apparently, the results revealed that there is no significant relationship between customer satisfaction and the customer experience. This means that customer satisfaction does not depend on the product experience, outcome focus, moment of truth, and peace of mind. However, there is a positively high relationship...
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...CASE STUDY December 2002 Procter & Gamble: Building A Smarter Supply Chain Issue/Solution To remain profitable, consumer products manufacturers must find ways to optimize the performance of their supply chains. They need to support marketing promotions better and avoid frustrating consumers with out-of-stock situations in the store. Situation • Procter & Gamble realized it needed a “consumer-driven supply network” to stay ahead in the consumer packaged goods industry. Retailing’s “first moment of truth” is a key focus area for P&G. When the shopper reaches the shelf, is the product there? • Discoveries • • Links between supply chain and CRM processes are critical. Business leads, technology follows. But the technology must be proven, practical and scalable. Even with immature solutions, it is possible to get rapid payback on streamlined demand and fulfillment processes for critical products. A harmonized ERP applications backbone is a basic requirement. • • Recommendations • Secure management support before you start redesigning your supply network. Don’t let politics condemn the initiative to failure. Leverage the value IT can bring in connecting demand and supply side business processes. Simplify your applications architecture to allow collaborative business processes and cope with changes in network alliances. • • Dig Deeper • • • Related Research from GartnerG2 Gartner Core Research Methodology Maria Jimenez with Derek Prior ...
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... Sales promotion, Social media, Sponsorship - event or property Media budget: Up to 500k Executive summary Corona Extra is one of the world's largest producers of export beer, renowned for the beach and good times with friends. But sales in Asia were stagnant. Competing with beer brands that capitalised on a status-driven lifestyle, Corona had to create distinction in a same-same category to gain share of throat. Corona's laid-back approach to life did not naturally resonate with local consumers. On top of that, Corona faced other challenges: limited distribution network, comparatively smaller marketing budgets, and a price of entry three times higher than the industry average. It was time to make Corona's causal lifestyle promise relevant. To do this, Corona revealed the paradox that young, ambitious drinkers were constantly facing: a hunger to win the race for more, while still craving a more 'authentic' and simple lifestyle. To give its drinkers permission to seek out more meaningful moments, Corona launched 'Let The World Wait' in 14 markets across the region. In doing so, Corona gave...
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...use of innovative information systems. This allows the customer or supplier to become more reluctant to pay the cost in time, effort, and inconvenience that it would take to change to the competitor. Also, the relationship the business has with its consumers will deter them from leaving. 2. How could a business leverage its investment in information technology to build strategic IT capabilities that serve as a barrier to new entrants into its markets? b. By investing in more advanced computer-based info system to improve the overall efficiency, businesses will be able to develop newer products or services that could have not otherwise been possible without the information technology capabilities available. Also, by increasing the possible complexity of information technology, the business can often discourage other companies from entering the same market 3. How could a business use Internet technologies to form a virtual company or become an agile competitor? c. In order to form a virtual company, the business most form well developed internets, intranets, and extranets in order to affectively link the people, their assets, and ideas. In order to become more of an agile competitor, the business must follow the four basic strategies: customers must find the product a solution to their individual problems; cooperate with customers, supplies, other companies, and even competitors; the company must thrive off change and uncertainty, using flexible organization structures;...
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...process that allows the number of goods by suppliers to equal the number of goods of demand. Once this happens the market at that moment is in a state of equilibrium. The market equilibrium price, p, and equilibrium quantity, q, are determined by where the demand curve of the buyers, D, crosses the supply curve of the sellers, S. The horizontal line of a graph below shows each unit from zero to quantity (q) the demand curve is above the supply curve, meaning that the consumer or customer is willing to pay more to buy those units than they cost to produce. The vertical line displays the prices on the graph. If the price is below the equilibrium the demand would be greater than the supply and there is a shortage. If prices are above the equilibrium the supply would be greater than demand and there is a surplus of supplies (McConnell, 2009). Laws of Demand and Determinants The law of demand is when the price is higher than the consumer is willing to pay for the product resulting in a lower demand. There are five ceteris paribus demand determinants that affect consumers. They are: • Buyers income deals with the available amount of money consumers can spend on a product. • Buyers preferences deal with consumer wants, needs, likes, and dislikes that affect their willingness to buy. • Prices from competitive sellers attach consumers with various options. • Buyers’ expectations to make decision on purchases in the future. •...
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...i.e. Who are you? DEPTH OF AWARENESS It measures how likely it is for a brand element to come in mind i.e. ease of recognition and the ease with which it does so i.e. recall value. The Cadbury brand is associated with best tasting chocolate which includes from everything from solid blocks to chocolate filled bars and novelties. For many people , chocolate is Cadbury and no other brand will do. The core values of quality, taste and emotion supports the Cadbury brand. Consumers know that they can trust a chocolate bar that carries Cadbury branding. The swirling chocolate and „glass and a half‟ are powerful images. They both portray a desire for chocolate while the half full glass suggest core values of goodness and quality. The brand has been successful in establishing the link, in the mind of the consumer ,that Cadbury equals chocolate. BREADTH OF AWARENESS It measures the range of purchase and usage situations in which the brand element comes to mind. Branded products command premium prices. Consumers are willing to pay the premium if...
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...Marketing Planning Define the Problem: Decision Case: Clark, vice-president and general manager of Brannigan Foods’ Soup Division, had to decide which of the four strategies presented by his four key manager he should follow to improve the division’s sales, market share, and profitability, which has been falling for the last three years. List any outside concepts that can be applied: The impact of developing new products (incremental) and extending the line of products in order to increase market share, profitability and/ or sales, as well as to gain shelf space. The power of using a recognized brand name to reduce risk, although it could also devaluate the brand. Cannibalization: developing these new products could result in cannibalization of the existing ones, for this, product developers and managers must take into account cannibalizations when they assess the value of the new products. Promotion: which covers all efforts (advertising, branding efforts, introductory coupons, and so on) the importance of investing or allocating resources in promotion in order to increase sales and market share. Pricing strategy: one of the proposed strategies talks about reducing the price of the can soups, the impact t of reducing the price of a product has on customers must be considered by the managers, consumers tend to question whether the quality of the product was put on stake or not in order to reduce price The product life cycle and the innovation of the product along...
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...Reading the passage it is quite clear that the theme here is Saleem Sinia’s attitude towards and the significance of India’s independence on the day of his birth.The distress and dismay of being born on this day is clearly established: ‘Oh spell it out, spell it out: at the precise moment of India’s arrival at independence, I tumbled forth into the world.’ (Rushdie, 1982). Repition is used to reflect Saleem’s irritation of having to specify his birth date. The protagonist and narrator of the story is Saleem Sinia, born at the exact moment India became an independent country. Saleem was born with telepathic powers and had an enormous and constantly runny nose with an extremely sensitive sense of smell gifts Saleem did not ask for, as he states, ‘For the next three decades, there was to be no escape.’ (Rushdie, 1982) The way the writer plunges the reader into the situation without a contrived introduction and writing from personal experience could be referred to as a poetic technique. The metaphorical emotional connotations portray Saleem’s conflicting emotions towards his country - not really accepting his fate or his country. ‘I had mysteriously been hand-cuffed to history,’ (Rushdie, 1982) in lines four and five (are exaggerated emotion of irony),...
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...Before 1999 the industry was worth about twenty billion dollars. Now the industry is only worth about four billion dollars due to the piracy of mp3’s. Nevertheless, the mp3 is one of the greatest inventions known to man, but it has yet to prove that it can be a moneymaker for the industry because of piracy. The industry has evolved from being an automatic moneymaker to every artist striving for sales. When an artist makes a record the record company gives them an advance. This means that the record company gives the artist money to make the record before any sales are made. No matter the type of artist, or how popular the music is since mp3’s were created, it’s almost been impossible to make profit. Even though artists are selling their music, they aren’t selling enough to gain recoupment from their advances. This hurts artists because they have to repay the record company all the money that was given in advance. The RIAA is the recording industry association of America. They review album sales for the year and compare them to previous years. They also are the main part of the industry that is trying to preserve artists’ music. Under the RIAA’s review of last year’s end shipment data alone, sales are -10.9%. Although digital sales raised by twelve percent, they still decreased into the negatives. The demand of music from artists itself has been a major increase from consumers, record labels don’t have enough money to invest in artists when they’re not making recoupment back...
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...Marketing Mix Paper Debbie Hardison Mkt/421 Larry E, Moore May 15,2013 The Marketing mix is something that we use almost every day. The marketing mix helps place the correct product in the correct place, at the perfect price, at the exact moment. The mix includes the four P’s which has a definite positive reflection on making a business successful. The first P is Price. What is the significance of the creation or provision to the consumer? Are there customary price topics for merchandises or services in this district? Is the customer price merged? Will a small decrease in price gain you extra market share? Or will a small increase be indiscernible, and so advance you additional profit margin? What markdowns should be presented to trade consumers, or to other thorough sections of your shop? How will your fee equate with your opponents? The second P is promotion. Wherever and at what time can you get through your advertising communications to your objective market? Will you grasp your spectators by promoting in the media, or on television, or broadcasting, or on posters? By using straight marketing brochure? When is the greatest phase to endorse? Is there a certain time of year in the market? Are there any broader eco-friendly issues that propose or command the effectiveness of your market introduction, or the skill of later promotions? In what way do your opponents do their advertisings? And just how does that impact your decision of P.R. movement? The third P is Place...
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...There are several considerable variables in the segmentation of Devondale’s market. The first category of buyers introduced by Devondale products is mothers, with their children being the core consumers, as children account for 24 per cent of the total consumption of dairy products (Kitchen & Pelsmacker, 2004). Mothers are the ones that regard dairy products, especially milk, to be a necessary need their children should have, as milk builds strong and healthy children. As the primary target market of Devondale, mothers are expected to come from families with children aged 6-15 years old, in which they are identified as middle-income earners. Based on AIO (Attitudes, Interest, Opinions) psychographical model, these mothers are assumed to be self-confident, organized and highly active. They may be working and spend most of their day on their workplaces, but they do not neglect their responsibilities in providing nutritious supplies for their children. Their brand choice is motivated by the best quality and the greatest value the products offer for their children. Therefore, they are willing to spend time in highlighting differences on the features of a brand to another before making a purchase decision. In terms of behaviour, they wanted to assure their children get significant amount of calcium intake – calcium promotes the development of bone density – as well as other vital nutrients, including protein and vitamins, through the consumption of Devondale’s dairy products...
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...justice. A keen businessman who made good profits, he developed ideas and plans to use money into improving the welfare and education of his workers. Robert Owen was aware of how owners of factories in the 1800s treated their workers. He wanted to improve the working and living conditions for his employees and so advocated a fair wage for a fair days work. Robert Owen paid better wages and provided better working conditions for his workers than many other employers of his time. In 1806, during a four week stoppage because of an American cotton embargo, Owen paid his employees full pay. From this moment on, Owen gained the trust of his employees and eventually their loyalty and affection. Today, we live in a consumer society, demanding products at low prices. Some products we buy are produced by children and adults in developing countries, working long hours in terrible conditions, and who are forced to live in poverty as they are not paid properly. In recent years, consumer awareness and consumer pressure has obliged companies to look at their business practices and some are actively trying to act more ethically. It has led to an alternative movement outside of normal trading practices to grow up around fair trade. In addition at a time when men were hostile to women's rights, Robert Owen caused controversy in the 1840s by suggesting marriage is a form of slavery for women. Over the last 150 years, inspired by the legacy of Robert Owen, co-operation has spread internationally and contributes...
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...trendwatching.com’s free Monthly Trend Briefing How will YOU deliver on consumer expectations in the next 12 months? 10 crucial consumer trends 2013 December 2012 / January 2013 trendwatching.com/trends/10trends2013 Introduction: 2013 will be the perfect storm of necessity and opportunity: some economies will do OK(-ish), others will be shaky, but in whatever market or industry you’re in, those who understand & cater to changing consumer needs, desires and expectations will forever have plenty of opportunity to profit. A remapped global economy, new technologies (or ‘old’ technologies applied in new ways), new business models... hey, what’s not to like? Hence this overview of 10 crucial consumer trends (in random order) for you to run with in the next 12 months. Onwards and upwards » 1. PRESUMERS & CUSTOWNERS 2. EMERGING2 3. MOBILE MOMENTS 4. NEW LIFE INSIDE 5. APPSCRIPTIONS 6. CELEBRATION NATION 7. DATA MYNING 8. AGAIN MADE HERE 9. FULL FRONTAL 10. DEMANDING BRANDS 11. MORE-ISM w w w. t r e n d w a t c h i n g . c o m 10 crucial consumer trenDs for 2013 2 1. PRESUMERS & CUSTOWNERS “Consumers will embrace even more ways to participate in the funding and (pre-)launch of new products and brands.” 2013 will see passionate consumers embrace two innovative new ‘consumption’ models: becoming PRESUMERS and CUSTOWNERS. PRESUMERS love to get involved with, push, fund, and promote products and services before they are...
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