What does the phrase “exchange relationship” mean in relation to marketing? The term of “Exchange” refers to give something in return for something, received of approximately equal value, to provide an object, a service or an idea. In Hong Kong, we usually called “Trade”. An exchange relationship is a direct relationship developed between a business and its customers has built on benefit and trust. An exchange relationship focuses on going beyond a simple business transaction by providing personalized care and attention, a “social exchange,” along with incentives for customers to remain with a many.
This personal connection develops stronger ties between the customer and the company, which is a quality many consumers seek in a business transaction. Goods are items, it is tangible products. For example: a car, handbag that you can see, feel, taste, touch and smell them. Services are things that people do, it is intangible products. For example: driving a bus, being a doctor, these two Jobs are type of services. We can trade goods and services to get the things that we need or want. So, Value refers to the tangible and intangible benefits a customer receives from buying good or service.
Marketing is ensuring that the thing being exchanged is appreciated for the value it holds. We can see the value from the different perspectives of the parties involved in an exchange: the customer, the producer and society. Most of the organization makes money not Just for themselves, for their customers, and also for their “Stakeholders”. The stakeholders of an organization also want to see the long run of the business, for sure don’t want to be associated with a company just for few years of disappear. The best way to present a good or service for consumers consideration, marketers eve many decision to make, so they need many tools.
The marketer’s strategic tool box is called the “Marketing Mix”. The term of “Marketing Mix” became popular, because of Neil H. Borden published an article during asses. Border’s marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, These ingredients into the four categories that today are known as the “Four AS”, they are Product, Price, Promotion and Place. Each P is a piece of the puzzle, they need to combine with the other pieces.
These four Up’s are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four Up’s on the customers in the target market in order to create perceived value and generate a positive response. Product is a good, a service, a place, a person, whatever is offered for sale in the exchange. For example: Brand name, Functionality, Styling, Quality, Safety, Packaging, Repairs and Support, Warranty, Accessories and Services.
Price is the value that the customer gives up or exchanges in order to obtain a desired reduce. For example: Pricing strategy, suggested retail price, discounts, wholesales pricing, cash, early bird discounts, seasonal pricing or price flexibility etc. Promotion includes all the activities marketers undertake to inform consumers about their products, and to encourage potential customers to buy these products. Promotions can take advertising, personal selling, sales force, sales promotion, public relations, marketing communications budget.
Place is about getting the products to the customer. This related to distribution channels, marketing coverage, members, arousing, distribution centers, order processing, transportation and logistics. An exchange centralizes the communication of bid and offer prices to all direct market participants, who can respond by selling or buying at one of the quotes or by replying with a different quote. Depending on the exchange, the medium of communication can be voice, hand signal, a discrete electronic message, or computer-generated electronic commands.
When two parties reach agreement, the price at which the transaction is executed is communicated throughout the market. The result is a level laying field that allows any market participant to buy as low or sell as high as anyone else as long as the trader follows exchange rules. Some dealers convert their bid or ask quotes and negotiate the price through the electronic message, such as email or SMS, or by phone. The trading arrangement is not considered an exchange because it is not open to all participants equally. 2. A sales manager at BBC Services Inc. Was required to track important marketing metrics each quarter.
Give two examples of the marketing metrics this sales manager might report. In recent year, data based marketing has swept through the business world, measurable, reference and accountability has become the keys to marketing success. There are many managers appreciate the range of marketing metrics by which they can evaluate marketing strategies and dynamics. Customer Relationship Management, we called “CRM”, it is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way.
For example, an enterprise might build a database about its customers that described relationships in sufficient detail so that management, salespeople, people providing service, and perhaps the customer directly could access information, match customer needs with product plans and offerings, remind customers of service requirements, know what other products a customer had purchased and so forth. CRM is the strongest and the most efficient approach in maintaining and creating relationships with customers. Customer relationship management is not only pure business, it also ideate strong personal bonding within people.
Development of this type of bonding drives the business to new levels of success. There are some efficient tools for maintaining CRM systems into their workplace are Salesrooms, Bathroom, Upstream, Sugar CRM etc. Creating and scheduling appointments with customers is needed and that is a central activity of most customer oriented businesses. Sales, customer support and service personnel regularly spend a portion of their time getting in touch with customers and prospects through a variety of means to agree on a time and place for meeting for a sales conversation or to deliver customer service.
Appointment CRM is a relatively new CRM platform category in which an automated system is used to offer a suite of suitable appointment times too customer via e-mail or through a web site. An automated process is used to schedule and confirm the appointment, and place it on he appropriate person’s calendar. Appointment CRM systems can be an origination point for a sales lead and are generally integrated with sales and marketing CRM systems to capture and store the interaction. Building and maintaining a business reputation is now more challenging, so many different platforms can be manage the brand reputations.
So, CRM can consolidate and cleaning up your own brand’s social reputation. There are two examples of the marketing metrics for this sales manager: The first example – Sales Records The company’s sales records are files of customer purchases with addresses, mounts, dates, products, payment methods, returns and other information constitute a rich trove of marketing data, it is likely to prove your most valuable marketing information source. Learn how to establish and maintain an effective sales record system, you can track prospects, customers, and sales.
It also can give you the specifics you need to show progress and success in your career. The sales records also can help motivate you as you step back periodically to see what progress you’ve made in selling. If you’re not satisfied with the results, it can motivate you to do better. So, building and to managing the sales records can guide you in your long and successful sales career. For example: “Sales force automation” (SFA) is the most widely and powerful used of sales tools, that increases sales win rates, reduces the sales cycle duration, and also streamlining all phases of sales from lead management to analytics and forecasting. It can enhances the sales representatives’ productivity and improves revenue. The second example – Customers preference Customer preference for a product can make or break a company. If customers generally like a product, it can stay around for years and sell millions of copies. However, if customers do not like the product, it could disappear very quickly if the company cannot figure out how to fix the problem. For example, some of customers choose to buy white cars instead of red or blue, no matter what brand the car is, where it was built, this is customer preference.
Why the most popular color is white? The color of a car has nothing to do with how the car functions, so logic would say that all colors would sell the same amount or car manufacturers would only produce one color. However, this is not the case. Those manufacturers produce many colors, including twice as many in white, or whichever color is trendy or popular at the time. Market research is a key factor to get advantage over competitors, it provides important information to identify and analyze the market need, market size and competition. 3.
Departure uses a business model that relies on women running their own businesses as agents of Departure. Departure successfully exports to China and India. Explain why these countries provide attractive markets for Departure. Departure is the name of a home products line that includes preparation, storage, containment, and serving products for the kitchen and home, which were first introduced to the public in 1946. Departure was developed by Earl Sills Tipper, he developed plastic containers used in households to contain food and keep it airtight.
The formerly patented “burping seal” is a famous aspect of Departure, which distinguished it from competitors. Departure pioneered the “Direct-marketing” strategy made famous by the Departure party. Departure is a successful direct sales company with a proud history. Departure’s business model is still centered on quaint-sounding “Departure Parties,” where the hosts and attendees are mostly women. Departure was known as a method of empowering omen, and giving them a toehold in the post-war business world. Departure is a IIS$2. Billion global firm with 13,500 employees in nearly 100 countries. Its stock price has risen 168 percent over the last five years, compared with virtually no gain for the stock market as a whole. You can Join the company for a very reasonable fee, you can make money with the Departure business model by finding customers. You also can hand out catalogs to friends and family members; you can do product demonstrations, conduct one on one meeting, host in home parties and do other things to generate sales. When you make sales, you can earn commissions and overrides off your total sales volume.
Another way to make money with the Departure business model is to recruit others and build a sales organization. When you do this, you can earn overrides and commissions from your team members’ sales. Eve found that the most successful Departure reps focus on recruiting and personal selling. Departure’s sales force is organized in a tiered structure with consultants at the bottom, managers and star managers over them, and next various levels of directors, Legacy Executive Directors at the top level. It is more flexibility and more generous commission and rewards for their consultants.
Departure business model is a very lucrative business model for anyone who enjoys selling. Anyone can do it. It is by no means a get rich quick type of business. You have to do the work. You can earn a substantial part-time or full-time income with Departure if you get customers and recruit other. In fact, some people earn a high six figure income with Departure. And others supplement their income, earning a few hundred extra dollars per month by selling Departure on a part-time basis. The biggest Departure market isn’t the United States, it’s successfully exports to China and India.
Departure is quickly gaining ground in emerging markets like India, where the company is nearing its goal of 100,000 women selling everything from the “root keeper” (for Indian bread) to the “miasmal box” (for spices) in major cities and villages alike. Departure entered India in 1996 and has grown there at a compounded annual rate of 30 percent. From a base of zero, Departure has swiftly become a leading seller of kitchenware in India, a category that has grown 12 percent annually from 2003 to 2008, thanks largely to the rise of the country’s middle class.
Indian women almost uniformly preferred to store leftovers in metal containers. Departure had to convince millions of homemakers in the subcontinent to turn their backs on long-held kitchen tradition, creating the market for nonmetal kitchenware. In China, Departure products the company had to opt for a completely different model, it’s selling products through departmental stores. “Departure in China is listed as a super brand. Departure are sold through franchised “entrepreneurial seafronts”, of which there were 1900 in 2005, due to laws enacted in 1998 aimed at pyramid selling.
A compound sales growth rate of 45% achieved over the past decade. One of the biggest franchising retail chain in terms of number f franchisees in China. Currently manage 6 regional branches and 30 provincial offices. The Chinese characters as are used as the brand name, and translate as “hundred benefit”. In conclusion, Departure is one of the most respected companies in our industry. They have a great reputation, an amazing product line, and a fair compensation plan.
Your key to success is to get started, use the products yourself, and spend most of your time looking for new customers and team members. 4. How does a marketing decision support system (MEDS) differ from a marketing information system (MIS)? Why might a marketer want to use an MEDS in edition to an MIS? The Marketing Decision Support System (MEDS) is a program that assists companies in making important marketing decisions. As the marketing environment becomes more competitive the pressure to gain the “edge” over competitors becomes more and more intense.
MEDS are valuable tools to assist in making marketing decisions. Marketing Information System (MIS) is basically a kind of link to facilitate communication between managers across different areas in a business organization. MIS plays a pivotal role in enabling communications across the floor of an organization between various entities therein. A company’s marketing information system generates regular reports for decision markers on what is going on in its internal and external environments. However, sometimes these reports are inadequate.
Different managers may want different information or the problem that must be addressed maybe too vague or unusual to be easily answered by the MIS process. As a result, many companies mix up their MIS with MEDS. An MEDS includes analyses and interactive software that enables marketing managers, even those who are not computer experts, to access MIS data and conduct their own analyses, often over the company intranet. MEDS is an enhancement to the MIS that sakes it easier for marketing managers to access the MIS system and find answer to their questions easily.
MEDS also includes sophisticated statistical and modeling software tools. Statistical software enables managers to examine complex relationships among factors in the marketplace. Although an MIS provides many reports managers need for decision making, it does not meet all their information needs. Most of MIS systems include internal customer transaction databases and many include acquired databases, these databases are extremely large. The terms MIS and ADS stand for Management Information Systems and Marketing Decision Support Systems respectively.
The essential difference between the two is in focus MEDS, as the term indicates, is about leadership and senior management in an organization providing good, reliable Judgment as well as vision MIS, on the other hand, is about focusing on the actual flow of information itself. 5. What is the difference between green marketing and greenmailing? Green Marketing defined as marketing products and services are based on environmental factors or awareness. Companies involved in green marketing make decisions relating to the entire process of the company’s products, such as methods of recessing, packaging and distribution.
The strategy is successful in the marketing world today. Green washing is the process of making their company and products appear to be green. It is the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology or company practice. Greenmailing can make a company appear to be more environmentally friendly than it really is. It can also be used to differentiate a company’s products or services from its competitors by promising more efficient use of power or by being more cost-effective over time.
The system largely depends on the public buying the whole game. The word of “GREEN”, is a term used to describe being more environmentally conscious in all aspects of your life. Green contains the powerful energies of nature, growth, desire to expand or increase. Balance and a sense of order are found in the color Green. Change and transformation is necessary for growth, and so this ability to sustain changes is also a part of the energy of Green. Green also implies that the need for reducing consumption, reusing and recycling products, steps that will help preserve the planet for future generations.
The survey f Green Marketing found that consumer perceptions of green continue to change according to various collective definitions and contribute directly to buying decisions. Green marketing is the responsible way to market your products/services by using technology, conservation and minimizing waste. Some examples of great new technologies include blobs, social networking, e-newsletters, and online advertising. These complement the “tried and true” methods of public relations, cause marketing, viral marketing, and other activities that leverage the power of the media, word of mouth marketing and human interest.
Use sustainable marketing for the business, it consists of the whole process of green sales. You have to provide an echo friendly product for sale, in a green manner and maintain a social responsibility at the same time. Add environmental marketing to the projects, it is based on helping the environment as a company markets a green product. It has great success in many areas of business today. It helps leave the world a bit greener than it was prior to the business footprint. Integrate echo marketing in the system, Echo marketing is marketing that demands that a company maintain the standard that the Federal
Trade Commission (FTC – is an independent agency of the U. S. Government) sets forth as law. They have a commitment to using green products and leaving the planet in a better manner then when they begin. Give organic marketing a chance if your product is green, Organic marketing is about using all natural ingredients in the entire process of product creation to packaging and selling a product. Green business marketing is all the rage. As consumers are becoming more environmentally conscious, marketing a green business online is more important than ever before.
Green marketing strategies are made up of many parts, they include notations to consumers already inside the business’ locale, print ads, signage, and also radio and television time. Marketing is a green business everywhere but the Internet is a huge mistake too many store and restaurant owners make. If you have incorporated any form of echo friendly business practices in your daily way of doing business, it is crucial to post the information online. Now that you have developed a plan for taking your business in a more environmentally friendly direction, find a health, fitness, or money angle to go with it.
Your customers will be pappy to learn that you figured out a way to reduce waste or energy use, but they also want to know what’s in it for them. As you take your green business marketing online, list not only your environmentally friendly changes, but also the benefits consumers enjoy as a result. For example, if you run a fast food business and found a way to incorporate some organically grown local produce into your menu, highlight how you are supporting the local economy and how your customers are reaping the benefits of organic tomato slices on their burgers. The tip is combined the “Health with Green”. . How might a company in the BIB market use a private exchange? In the view of sales and marketing, the term business-to-business, it called “BIB”, is a way to describe the transactions that take place from one company conducting commerce with another company. The consumer in these trades is always another business. When a company sells its products and services to the individual consumer, it is referred to in marketing-speak as BBC or business-to-consumer. A private exchange is an exclusive ad marketplace that gives premium publishers complete control over how they sell their inventory.
In contrast with the direct ad outwork relationships of the past, private exchange publishers have full transparency into the buyers and advertisers, and can restrict access to each impression. Typically, buyers on private exchanges leverage programmatic means such as Real Time Bidding (ART). People are interested in examples of what other BIB companies large and small are doing with social media. It is easier to Justify your plans to clients and supervisors by showing successes that other companies have had. Below are two recent examples that have been written about. UPS launches a BIB social media marketing campaign
United Parcel Service, we called “UPS”, the global shipping company, is launching a new “logistics” ad campaign in the coming days to boost its credentials with small businesses by leveraging social media networking power. Catchy ad music aside, this could be one of the best examples to date of social media utilization for BIB. UPS wants to show potential customers its passion for transportation and supply chain solutions, what it calls “New Logistics”. Especially wants to bring the message of growth opportunity to small businesses. It is using a multi-media ad campaign, with an emphasis on digital and social channels.
It has a new website, which says in a press release is designed to facilitate sharing core content, such as customer case studies and tools that bring the benefits of logistics to the life. A company blob is also in the works to liven up the message. The potential customers will be referred to the new official Faceable or Twitter pages, where a variety of media and case studies will compliment the BIB discussions. This is a radical change from the previous unofficial UPS Faceable page, which acted primarily as a complaint forum for disgruntled customers that went unanswered by the company.
The key to UPS online success lies in its ability to make its online social channels a center for discussing business-changing possibilities instead of logistic failures. This may prove to be a bit of a challenge considering the negative nature of the first customer post on the new Faceable page, but it does give UPS the opportunity to directly respond to individual complaints through its social channels. UPS wants to connect primarily with a grassroots community of small business owners or anyone who handles logistics issues within an organization.
Wave reported on BIB in social media in the past, and while we are sure there is a great potential for both buyers are sellers through online social connections, the BIB social media sector is still lagging behind BBC social media marketing tactics. The HASH Business Network To target business entrepreneurs and provide them with an active forum to share and gain knowledge, HASH has created a website as “The HASH Business Network” for both customers and non-customers. It’s evident that the HASH Business Network truly thrives on its members.
This website includes a network of blobs, and also invites members to create their own blob to share their personal experiences with there entrepreneurs. Currently, the network is made up of 148 blobs from members now. The websites homepage is populated with content from the users, the most popular recent blob post, forum post and user profile. A BIB exchange is a unified online platform, where buyers and sellers login to communicate, collaborate and make business transactions. A private BIB exchange, mostly, consolidates suppliers and buyers of a specific company, which owns and operates the exchange. 7.
A large chain amusement park sells tickets at its main gate for guests who are visiting the park for Just that one day. The park also sells seasonal asses that can only be used on weekdays. What market segmentation is being implemented by the amusement park? Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs as well as common applications for the relevant goods and services. Depending on the specific characteristics of the product, these subsets may be divided by criteria such as age and gender, or other distinctions, such as location or income.
Marketing campaigns can then be designed and implemented to target these specific customer segments. Common types of market segmentation include: geographic, demographic, cryptographic and behavioral. Behavioral segmentation is focus on a customer’s attitude toward products and services. Two categories of behavioral segmentation is included the product usage an product benefits. Product usage reflects what products you use and how often. For the example of a large chain amusement park, some individuals may visit amusement parks frequently while others visit them only occasionally.
Frequency of use determines promotional strategies for a market segment. Marketers may want to develop separate promotions for different market segments. One promotion may encourage frequent suitors to continue to visit the park by purchasing a seasonal pass. Seasonal pass refers to a ticket attainable at most amusement parks allowing admission to the park multiple times during a certain period, usually a year. Seasonal passes also gain access to theme parks like Disneyland and Ocean Park in Hong Kong. Seasonal passes have both pros and cons.
With the economy still lagging, many families will have to look long and hard this year to determine if buying a season pass makes sense. Let’s look at the advantages and disadvantages behind this purchase. The most obvious pro concerning a season pass purchase is savings. Used frequently enough, the large up-front investment can bring the per-day price of a lift ticket well below Disney’s daily ticket price. For example: For example, Disney with a HAS$399 daily adult ticket and a HAS$2400 seasonal pass price would require 6. 01 visits before hitting the “break even” point, the purchase of a season pass seems to make sense.
Other advantages include the convenience, no more waiting in the ticket line on a powder day, Just boot up and go. There are also have special celebrations for seasonal pass, such as Free high tea, free dinner buffet, free birthday cake or related unifies during their birthday month. For hotel benefits, you can enjoy up to 25% off for the room reservation, dinning at hotel and some spa treatment etc. There are extremely good value is the free parking. Fortunately, there are alternatives being offered that promise near-season pass advantages without the long-term commitment.
The cons include added cost, for example: expect to pay extra per visit for food. Visitors aren’t allowed to bring food into the park and the prices for food are accordingly high, with at least HAS$OHIO per meal for each person, and the selection is also limited. Drinks tend to be pricey too, up to HAS$20 for a large size of Coca Cola. There is a long line for season passes, especially on Public Holidays, Summer Time or Christmas etc. Sometimes it took over ninety minutes for waiting the Roller Coaster or the game of Winnie the Pooh, you may feel so frustrated after ninety minutes and crowded people. . Why is reselling the customer an important part of the confirmation after the adoption of an innovation? Post purchase behavior is where the consumer holds a positive feedback about the product and happy with the product quality. When there is positive post purchase behavior, he will engage in peat purchases and spread positive word of mouth about the product encouraging others people to buy the product. As an example if the customer is happy with the performance of the mobile phone, he will recommend his friends to purchase the same brand of mobile phone.
Customers exhibit customer loyalty when they consistently purchase a certain product or brand over an extended period of time. As an example, many customers stick to a certain travel operator due to the positive experiences they have had with their products and services. Customer loyalty is the key objective of customer relationship management and describes the loyalty which s established between a customer and companies, persons, products or brands. The individual market segments should be targeted in terms of developing customer loyalty.
Product loyalty is a long-term customer preference for a specific product or service. Product loyalty can be produced by factors such as customer satisfaction with the performance or price of a specific product or service, or through identifying with a brand image. It can be encouraged by advertising. When retail stores introduced new products or new design, the company usually gave away free samples to encourage consumers to try it. Based on the trial experience, some potential buyers will more to adopt the new product. In the adoption stage, a prospect choose the product.
If the product is a consumer or business to business good, this means buying the product and learning how to use and maintain it. If the product is an idea, this means that the individual agrees with the new idea. It is important to note that not all individuals or organizations that first choose an innovation become permanent customers. Some potential customers, even after initial adoption, do not go on to the final stage of confirmation. Marketers need to roved follow up contacts and communications with adopters to ensure After adopting an innovation, a customer weights expected versus actual benefits and costs.
Favorable experiences contribute to new customers becoming loyal adopters, as their initially positive opinions result in confirmation. Of course, nothing lasts forever, even loyal customers may decide that a new product is not meeting their expectations and reject it, or worrying that they paid too much, wondering if they have been ripped off etc. Some marketers feel that reselling to the customer is in the confirmation stage is important. They provide advertisement and sales presentations to reinforce a customer’s choice. There is customer experience more important than product.
Innovators and entrepreneurs know that it’s not Just about making a great product anymore. It’s about building an entire experience around the product. That’s why in recent years, these leaders have honed in on two areas: customer experience design and collaborative platforms. Companies really need to follow this model by focusing on the customer experience as a primary focus instead of the product only. By creating an entire experience, businesses are developing a level of loyalty that oldest be there if it’s Just about the product.
I f companies aren’t helping to drive some of these changes, they won’t get as much value out of IT as they should. Customer experience design is all about building brand values, according to an article on Innovation Excellence’s website. The collaborative platform zeroes in on building engagement and shaping a leadership platform. Of course, since innovators and entrepreneurs have separate goals, their focuses are different. Innovators are more interested in the creative design and experimentation. Entrepreneurs must be marketers who can successfully sell the innovation and make money.