... Submission Date: 11/09/2011 [Word Count: 2750] (Excluding appendices/bibliographies, tables and diagrams) Advertising and Promotions of a customer brand contributes more to its success in creating added values compared to any other individual factor. Executive Summary: This report highlights the importance of advertising and promotions and presents it as one of the most effective tool in an organization’s promotional mix. Creating customer value that effectively leads to customer loyalty is essential and the main mantra to sustain in the current cut-throat competitive market scenario. This study compares various elements of the promotional mix and establishes that the contribution of A&P is indisputably colossal as compared to other factors. Introduction: Today’s business world is immensely powerful and competitive. Customer Relationship and monetary gains are two areas around which businesses revolve. Establishing and maintaining consumer relationships and reaping profits are two business goals. Both are different principles, and both crucial for an organization’s success, often the former goal leads to attaining the latter. Peter Drucker has rightly stated ‘The purpose of a business is to create a customer’. That’s exactly what this report talks about. We’ll look into the significance of creating values for customers, means and tools of delivering standards, discuss the promotional mix, how and...
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...start by establishing an export department with a sales manager and a few assistants (and limited marketing services). As they go after global business more aggressively, they can create an international division with functional specialists (including marketing) and operating units structured geographically, according to product, or as international subsidiaries. Finally, companies that become truly global organizations have top corporate management and staff plan worldwide operations, marketing policies, financial flows, and logistical systems. In these organizations, the global operating units report directly to top management, not to the head of an international division. Evaluating and Controlling the Marketing Process To deal with the many surprises that occur during the implementation of marketing plans, the marketing department has to monitor and control marketing activities continuously. Table 1.1 lists four types of marketing control needed by companies: annualplan control, profitability control, efficiency control, and strategic control. The Fourteenth Edition of Principles of Marketing! Still Creating More Value for You! The goal of every marketer is to create more value for customers. So it makes sense that our goal for the fourteenth edition is to continue creating more value for you—our customer. Our goal is to introduce new marketing students to the fascinating world of modern marketing in an innovative and comprehensive yet practical and enjoyable...
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...decades. The organisations in the present day care as much for creating value for customers as they do for increasing their profits. Infact, it has been largely accepted that both these things are interlinked. Modern age marketeers are realising and understanding the importance of creating value for their consumers so as to reap the benefits out of a strong buyer-seller relationship. This can be supported by Gary Armstrong who quotes that "creating customer value and satisfaction are at the very heart of modern marketing thinking and practice." The need and importance of creating value has been discussed in the following paragraphs. The ways in which organisations create value for their consumers as well as themselves has also been highlighted with examples from the products and services we use/see in our everyday lives. Also, the role of value creation in today's market has been illustrated with examples from the telecommunications sector, fashion sector ............................. What exactly does creating value for the customer mean? To understand this better, let us go back to the role of marketing. Marketing strategies basically aim to cater to a particular set of people who are most likely to buy the product or service being offered. This knowledge helps the marketeer device ways in which to position the product in the minds of the target audience so as to 'create value' for the product and attach that value to the product (Tom Egelhoff). The buyer perceives the product...
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...Using an organisation of your choice write a report that explains how the company seeks to deliver customer value. This report will be explaining how Tesco Plc seeks to deliver customer value, through objectives and strategies they have in place to try and deliver customer value, and also improving the relationship between them and the customer. Tesco was founded in 1919 when Jack Cohen began to sell groceries from a stall in East London. The name Tesco only became known in 1924, and the first store was open in 1929 in Burnt Oak, Edgware, North London. Now Tesco is one of the world’s largest food retailers, operating in 14 different countries worldwide, in Europe, Asia and North America. Tesco is also a leading retailer in the United Kingdom, with its headquarters in Hertfordshire and 2,715 stores nationwide, it employs almost 300,000 members of staff, and has a market share of just over 30% in the United Kingdom, this creating over 60% of the group sales and profits. Tesco’s main objectives is to increase market share, maximise sales, to grow and maintain the number one retail company in the United Kingdom, remain the market leader, create value for their customers to gain lifetime loyalty, to be an outstanding international retailer in stores and online, be a creator of highly valued brands and supporting the well-being of communities and economic issues. In order for Tesco to achieve their organisational objectives, they need to be able to determine the wants and needs...
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...1(d).Value Chain Analysis: A Way to profit improvement & cost Reduction Learning Objective 1. how to identify the value added activity 2. how to rectify the non –value added activity 3. application in profit planning & cost reduction INTRODUCTION Competitive advantage for a company means not just matching or surpassing their competitors, discovering what the customers want and then profitably satisfying, and even exceeding their expectations. As barriers to inter-regional and international trade are diminishing and as access to goods and services are growing, customers can locate after identification and «the best of what they want, at an acceptable price, wherever it is in the world. Under growing competition and, hence, rising customer expectations, a company's penalty for complacency becomes even greater. A strategic tool to measure the importance of the customer's perceived value is value chain analysis. By enabling companies to determine the strategic advantages and disadvantages of activities and value-creating processes in the market place, value chain analysis becomes essential for assessing competitive advantage. Value analysis or value engineering is one of the most widely used cost reduction techniques. It can be defined as a technique that yields value improvement. It investigates into the economic attributes of value. It attempts to reduce cost through ...
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...IDENTIFYING COMPETITIVE ADVANTAGES Video: Panera Bread Cohesion Case: Competitive Advantage:Business Dilemma To survive and thrive, an organization must create a competitive advantage. A competitive advantage is a product or service that an organization's customers place a greater value on than similar offerings from a competitor. Unfortunately, competitive advantages are typically temporary because competitors often seek ways to duplicate the competitive advantage. In turn, organizations must develop a strategy based on a new competitive advantage. When an organization is the first to market with a competitive advantage, it gains a first-mover advantage. The first-mover advantage occurs when an organization can significantly impact its market share by being first to market with a competitive advantage. FedEx created a first-mover advantage by creating its customer self-service software, which allows people and organizations to request parcel pickups, print mailing slips, and track parcels online. Other parcel delivery companies quickly began creating their own online services. Today, customer self-service on the Internet is a standard for doing business in the parcel delivery business. Page 14 As organizations develop their competitive advantages, they must pay close attention to their competition through environmental scanning. Environmental scanning is the acquisition and analysis of events and trends in the environment external to an organization. Information technology...
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...TITLE Value Chain Analysis for Assessing Competitive Advantage CREDITS This statement was approved for issuance as a Statement on Management Accounting by the Management Accounting Committee (MAC) of the Institute of Management Accountants (IMA). IMA appreciates the support of The Society of Management Accountants of Canada (SMAC) in helping create this SMA and extends appreciation to Joseph G. San Miguel, of the Naval Postgraduate School, who drafted the manuscript. Published by Institute of Management Accountants 10 Paragon Drive Montvale, NJ 07645-1760 www.imanet.org Special thanks are due to Randoif Holst, SMAC Manager, Management Accounting Guidelines, for his continuing project supervision and to the members of the focus group (including MAC members Dennis Daly and Thomas Huff) for contributing to the improvement of the final document. Copyright © 1996 Institute of Management Accountants All rights reserved Statements on Management Accounting PRACTICE OF MANAGEMENT ACCOUNTING Value Chain Analysis for Assessing Competitive Advantage TABLE OF CONTENTS I. II. III. IV. Rationale . . . . . . . . . . . . . . . . . . . . . . . 1 Scope . . . . . . . . . . . . . . . . . . . . . . . . . 1 The Value Chain Defined . . . . . . . . . . . . .1 Competitive Advantage and Customer Value . . . . . . . . . . . . . . . . . . .2 V. The Role of the Management Accountant . . . . . . . . . . . . . . . . . . . . . . .4 VI. The Value Chain Approach...
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...the customers’ needs as the central focus of the company’s activities and planning whilst following its corporate social responsibility. It consists of creating a system that will provide the customer with his/her needs and at the same time having the company make a profit, which therefore creates customer value. It consists of satisfying the needs of the customer whilst still reaching the company’s goals. The four principles contained in the marketing concept are profitability, customer orientation, social responsibility and organisational integration. It encourages focus on the needs and wants of the consumers by teamwork and working as a unit. (Strydom, 2004, p.299) 2.2) Profit is not just there to make the shareholders happy. Profit can benefit the company in many ways, helping it to grow, and reach the desired goals of the company. Without profit, the company can not create quality advertising in order to give it the edge over its competitors. It can not afford advertising, sales promotion, and publicity, which are essential in giving the company the competitive edge over its competitors. Quality market research will not be able to take place as the company will not have the capital to fund market research. Without profit, the product/service will not be able to stay at the desired quality. It will not be able to create a happy environment for staff (staff functions, raises etc...), in turn creating a less effective product/service. Focus on customer centricity...
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...marketing is fundamental in how successful a business is by concerning itself with the marketing of goods and services to customers. The nature of the customer, which is another organisation, is the key distinguishing feature between B2B and business-to-consumer (B2C). What should B2B marketing strive to achieve? In its most simple state B2B marketing should do, at the very least, two things. It should reduce the costs of doing business and enhance the relationship between trading companies by being more reliable, more accurate and more adaptable through the exchange of information. In trying to achieve these minimum requirements, if not more, B2B marketers face a variety of problems, these being the ability of identifying the customer, understanding the customer’s needs and creating value for the customer. In order to eliminate these problems four important concepts of B2B marketing can help the marketer. These are identifying customer value, segmentation, establishing and maintaining relationships within a network and the dimension of business ethics. The importance of these concepts can be divided into two main aspects. Firstly, we have the fundamentals of B2B marketing which are customer value and relationships, without these closely intertwined aspects there is no business as a company lacks, in simple terms, associations with customers and suppliers. Secondly, the strategy of an organisation is crucial and includes the implementation of the correct segmentation...
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...9-798-062 REV: FEBRUARY 25, 2006 PANKAJ GHEMAWAT JAN W. RIVKIN Creating Competitive Advantage Some companies generate far greater profits than others. The pharmaceutical maker ScheringPlough produced an economic profit of more than $10 billion during the period 1984-2002. That is, the accounting profit it generated exceeded its cost of equity capital by that amount. Over the same period, U.S. Steel produced an economic loss of nearly $500 million; its cost of capital exceeded its accounting profit by a wide margin. Such large differences in economic performance are commonplace. Understanding their roots is crucial for strategists. Differences in industry structure shed some light on such differences in performance. To a certain extent, Schering-Plough has generated more economic profit than U.S. Steel because the pharmaceutical industry is structurally more attractive than the steel industry. Rivalry in the pharmaceutical market is muted by factors such as patent protection, product differentiation, and expanding demand; in contrast, rivalry in the steel industry is fierce—fueled by excess capacity, limited differences across products, and slow growth. Many pharmaceutical users hesitate to switch among products or brands, while steel customers are usually willing to switch among producers to get a better price. Many pharmaceuticals are made from commodities with little labor input, while unions exercise such power in the steel industry that labor costs often account for...
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...Chapter 1: Creating and Capturing Customer Value Marketing: creating value for customers and building strong relationships to capture from customers in return - All about managing profitable customer relationships (satisfying customer needs) Core Customer and Marketplace Concepts 1. Needs wants and demands * Needs: states of felt deprivation * Wants: the form human needs take as shaped by culture and individual personality * Demands: human wants that are backed by buying power 2. Market offerings – products, services, info or experiences offered to satisfy a market need * Marketing myopia: mistake of paying more attention to the products itself than to the benefits and experiences produced by these products (brand experience) 3. Value and satisfaction – must set smart and realistic product expectations for customers 4. Exchanges and relationships – the act of obtaining a desired object from someone by offering something in return 5. Markets – the set of all actual and potential buyers of a product or service Marketing Process 1. Understand the marketplace and customer needs and wants 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Build profitable relationships and create customer delight 5. Capture value from customers to create profits and customer equity Marketing Management: choosing target markets and building relationships with them ...
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...Creating a Personal Selling Philosophy Abstract At some point, every transaction will require some elements of sales. More specifically, every business offers either a service or is selling a product. A career in sales can personally and financially prove to be rewarding and beneficial. In order to be a successful salesperson, one should develop a personal selling philosophy. Personal selling can be referred to as one of the major promotional methods used in business either by the people employed, by the total expenditures, or by the expenses as a percentage of sales. This paper will discuss developing a personal selling philosophy, selling factors style in a global environment, and examining a fit assessment. Creating a Personal Selling Philosophy Personal selling is the interactive process whereby a buyer and a seller negotiate an exchange process. It is usually, though not necessarily, carried out in a fact-to-face encounter between the parties [ (Blythe, 2009) ]. Personal selling is tailored specifically to respond to the customers’ needs and resolve their problem. Salespeople are encouraged to develop a personal selling philosophy based on the three prescriptions: adopt the marketing concepts, value personal selling and assume the role of a problem solver or partner. Sales trainers and writers have emphasized the problem-solving aspects of selling for many years now: the most successful presentations are those in which the customer does most of the talking...
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...Marketing and the Marketing Process Marketing deals with customers more than any other business functions. Marketing is managing profitable customer relationships. Marketing has a twofold goal. They are to attract new customers by promising superior value, and keep and grow current customers by delivering satisfaction. The American Marketing Association defines marketing as “The Process of planning and executing the conception, pricing, promotion, and distribution of ideas, good, and services to create exchanges that satisfy individual and organizational objective”. The Marketing process is the method of evaluating openings, choosing the proposed customer, addressing the consumer needs and wants, describing the price, product, place and promotion and addressing the marketing campaign. The marketing process takes major responsibility to control overall marketing strategy. The marketing process has 5 steps that lead to a successful advertising campaign. In the first four steps, companies work to understand consumers, create customer value, and build strong customer relationships. In the final step, companies reap the reward of having superior customer value. Now, we will explore the steps of the marketing process. Step 1 is marketers need to understand the market place and the needs and wants of customers. There are five core customer and market place concepts. Needs, wants, and demands is one. Human needs are states of felt deprivation. Human wants are the form human needs...
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...obtains what they need and want through creating and exchanging products and value with others. The traditional view of marketing is that the firm makes something and then sells it. In my words, marketing is how the producers create value to the customer and receive it by needs and wants. We must know that marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. Ever since man started to trading goods, marketing was created. Suppose that marketing was never exist, we cannot buying foods, houses, car, etc. Without marketing, this world is nothing. Marketing involves the satisfying customers’ needs and wants. Marketing has a value creation and delivery sequence that consists of three parts. That is choosing the value, providing the value, and communicating the value. From my understanding, marketing does both. It creates and satisfies needs of customers. Marketers must use the marketing development’s term to create needs. They must learn how to change in knowledge, behavior, attitudes, or creativity. Then, it helps customers to be motivated to learn and make a decision, helps the customers effectively handle the information and experience, or helps the customers understand the product applications and influences the buying behavior. Marketing also satisfy needs. Marketing creates a transaction for exchanging the product for a value and thus create a satisfaction to the...
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...does it.” [1] Understanding the tool Often called the “credo”, “philosophy”, “core values” or “our aspirations”, organization’s mission is the statement that defines its core purpose or reason for being [2]. It tells who a company is and what it does. According to P. Drucker, often called the father of modern management, a mission is the primary guidance in creating plans, strategies or making daily decisions. It is an important communication tool that conveys information about organization’s products, services, targeted customers, geographic markets, philosophies, values and plans for future growth to all of its stakeholders. In other words, every major reason why company exists must be reflected in its mission, so any employee, supplier, customer or community would understand the driving force behind organization’s operations. There are two types of statements [1]: * Customer-oriented missions. Customer-oriented missions define organization’s purpose in terms of meeting customer needs or providing solutions for them. They provide more flexibility than product-oriented missions and can be easily adapted to changing environment. For example, Nokia’s statement “connecting people” is customer-oriented. It does not focus on mobile phones or smartphones only. It provides a solution to customer needs and could easily have worked 50 years ago, and will continue to work in the future. It also gives more strategic flexibility for the company. In Nokia’s case, it may start providing VoIP...
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