...Program in Pampanga Clarkfield, Pampanga Reaction Paper 2: DESIGN- ORIENTED NEW PRODUCT DEVELOPMENT: LG Illustrates What It Takes To Be Successful (In partial fulfillment of the requirements in BM186: Operations Management) Submitted by: Calagui, Kristal Jarin, Haydee Maliwat, Ana Serrano, Czarina Siron, Kyla Submitted to: Prof. Ianne Calica Introduction There is widespread recognition that as competition intensifies and technological differentiation becomes more difficult, design offers a potent way to position and differentiate products. In the article “Design- Oriented New Product Development: LG Illustrates What It Takes To Be Successful” the authors suggest that the two approaches in reflecting a customer’s point of view in new product development (NPD) are customer-following approach and customer-leading approach. The former utilizes expressed consumer needs and the latter focuses on consumers’ latent needs. The article identified design as an important role in new product development process, especially in the case of user-driven products such as mobile phones. Thus, the number of customer-leading approaches is increasing rapidly through design-oriented NPD. An example of this is LGE’s Chocolate phone that has been a success since it was launched in 2005. The theme of the article revolves around identifying the dynamic evolutionary process and key success factors of design oriented NPD for the case of LG Electronics’ Chocolate Phone. The research method...
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...extension or remain using the original product to save on costs. Question 1 A market leader in pharmaceuticals A market leader in pharmaceuticals should emphasize a customer-oriented strategy. According to Kotler & Keller (2012), “A market leader has the largest market share and usually leads in price changes, new product introductions , distribution coverage and promotional intensity” (p. 299). With that said, market leaders must be vigilante in order to stay on top. Though a market leader, such as Advil, possesses a majority of the market, Tylenol could discover innovative technology that could knock Advil out of first place. A few strategies a market leader could adopt include, expanding total market demand, and protecting market share. When total market demand expands, market leaders tend to gain the most in sales. For example, if Advil found a way to encourage increased use of their product, then because they are already the market leader in pain relievers they would gain the most sales if market demand for pain relievers expanded. Using a customer oriented strategy would mean Advil would look for new customers or increased usage from existing customers. Sherman (2014) suggests that direct and subtle messages in advertising a product would have to be modified in order to appeal to new customers. Using a particular celebrity...
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...Part Market-Driven Strategy 1 Chapter 1 Market-Driven Strategy The market and competitive challenges confronting executives around the world are complex and rapidly changing. Market and industry boundaries are often difficult to define because of the entry of new and unfamiliar forms of competition. Customers’ demands for superior value from the products they purchase are unprecedented, as they become yet more knowledgeable about products (goods and services) and more sophisticated in the judgments they make. External influences from diverse pressure groups and lobbyists have escalated dramatically in country after country. Major change initiatives are under way in industries ranging from aerospace to telecommunications. Innovative business models that question the traditional roles of an industry are defining a new agenda for business and marketing strategy development. Companies are adopting market-driven strategies guided by the logic that all business strategy decisions should start with a clear understanding of markets, customers, and competitors.1 Increasingly it is clear that enhancements in customer value provide a primary route to achieving superior shareholder value.2 Consider, for example, Southwest Airlines’ market-driven strategy that has achieved a strong market position for the U.S. domestic carrier. The airline’s growth and financial performance are impressive. Although Southwest is the fourth largest U.S. airline, its market capitalization is greater...
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...My company (Crackmasters) provides a vehicle wins shield repair and replacement service in the Ontario region. This is a franchised service meaning that we receive material, signs, and pricing objectives from our parent company. The individuals at the company headquarters meet every year to plan a market strategy and then the information is disseminated to franchise owners across the country. However, franchisees reserve the right to implement their pricing strategy based on business activity. Thus, there are three different pricing strategies, which are profit-oriented, sales oriented, and status quo. First, profit- oriented pricing strategy is when a business strives to make a profit on the service that they are selling. This involves minimizing...
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...International Journal of Bank Marketing Emerald Article: Does relationship marketing improve customer relationship satisfaction and loyalty? Andreas Leverin, Veronica Liljander Article information: To cite this document: Andreas Leverin, Veronica Liljander, (2006),"Does relationship marketing improve customer relationship satisfaction and loyalty?", International Journal of Bank Marketing, Vol. 24 Iss: 4 pp. 232 - 251 Permanent link to this document: http://dx.doi.org/10.1108/02652320610671333 Downloaded on: 16-01-2013 References: This document contains references to 91 other documents Citations: This document has been cited by 30 other documents To copy this document: permissions@emeraldinsight.com This document has been downloaded 13476 times since 2006. * Users who downloaded this Article also downloaded: * Andreas Leverin, Veronica Liljander, (2006),"Does relationship marketing improve customer relationship satisfaction and loyalty?", International Journal of Bank Marketing, Vol. 24 Iss: 4 pp. 232 - 251 http://dx.doi.org/10.1108/02652320610671333 Andreas Leverin, Veronica Liljander, (2006),"Does relationship marketing improve customer relationship satisfaction and loyalty?", International Journal of Bank Marketing, Vol. 24 Iss: 4 pp. 232 - 251 http://dx.doi.org/10.1108/02652320610671333 Andreas Leverin, Veronica Liljander, (2006),"Does relationship marketing improve customer relationship satisfaction and loyalty?", International Journal of Bank Marketing, Vol. 24 Iss:...
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...Nike and Adidas Strategies Joyce Powell DR. Jean Fonkoua Bus 508 May 28, 2015 Nike and Adidas Strategies Compare and contrast the promotional strategies used by two different companies for a similar product within the category that you selected. The main purpose of this paper is to compare and contrast the various marketing, by Nike and Adidas, two of the world’s best sports companies. Nike and Adidas are involved in major athletic apparel. According toDermesropian, Drage, Grigaite and Lopez (2004,p.15) Nike focus on innovation and emphasis on their research and development department in order to be profitable in the long run and they do their best to produce footwear, apparel and athletic equipment that reduce or eliminate injury, help in athletic performance and maximize comfort. Nike operation in the USA, Asia Pacific, Europe, Middle East, Africa and the American regions trying to reach as many customers as possible. Nike business level strategy is a combination of the best cost provider and broad differentiation strategy, but more emphasis is put on the best cost provider strategy. They believe and confide heavily on strategic outsourcing and most of their products are manufactured outside the United States. One of the main reasons behind their success following the cost leadership strategy is their extensive network structure that allows them to cancel their alliance with any company that fails to maintain their standards. The team member work very closely...
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...Marketing Strategy Corey Johnson University of Phoenix June 14, 2012 Torrey Cloud Kudler Foods has a high-quality marketing strategy it uses the technology of tomorrow and blends it with the marketing principles of today. The company is forward thinking with its differentiation and positioning of products and services. Kudler Foods have contemplated and analyzed its impact of the product life cycle on marketing. Kudler Foods pricing strategy keeps them competitive. Kudler Foods has a high-quality marketing strategy it uses the technology of tomorrow and blends it with the marketing principles of today. The company is forward thinking with its differentiation and positioning of products and services. The founder Kathy Kudler came from a marketing background and uses her marketing strategies that she has learned and had success with. Kudler implemented her vision for a gourmet fresh foods store with an 8000 square foot retail space, in an upscale fashion shopping center, Kudler offers the freshest and finest foods in every budget. Kudler has over 250 varieties of cheeses and 350 fruits from every part of the world. Kudler has developed an online customer relationship...
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...Aviation Companies Marketing Strategies . There are various marking strategies aviation companies are making to meet the needs of the growing international business and commercial aircraft market. Global business depends on global economic performance. The world is recovering from a recession. Aviation international business is beginning to have a positive outlook as individual countries’ economies once again begin to grow, especially in emerging markets where there is a projected increase in demand for aircraft. In a globalized world, international air travel at airline and corporate level aviation is assuming a positive outlook. Aviation companies such as Boeing are aggressively marketing their products to compete with Airbus in the international arena, through rigorous global marketing strategies aimed at maintaining a leadership position in commercial aircraft sales. Especially in the medium and heavy aircraft categories. Boeing marketing strategies like other actors in the aviation industry is dependent on projections and forecasts. Boeing targets existing clients/ customer and uses marketing strategies that starts with customer oriented strategy, thereafter product oriented strategy. Included in these strategies are product pricing and advertising strategies. Customer Oriented Strategy Boeing’s main strategy is to target airplane companies by researching all of the airplanes that companies currently use; aircraft routes, capacity, economy, and suitability...
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...without the prior written consent of Resource Development International Limited. Marketing Orientation Marketing Orientation Today, to be effective in marketing, an organisation has to be marketing oriented. It needs to adopt a marketing based business philosophy in all its functions. Let us commence by looking at some basic concepts relating to marketing and marketing orientation. http://www.youtube.com/watch?v =sbEnRGJr2jY A market consists of buyers and sellers - trading in products/services. The price is normally set by the supply of or the demand for, the product. The market for any business consists of its actual and potential customers. This market may be local (e.g. a street market), national (e.g. the mass market) or international. Markets may be classified as: Consumer markets (B2C) http://www.cimmarketingexpert. co.uk/buyerbehaviour Business markets (B2B) http://www.cimmarketingexpert. co.uk/buyerbehaviourB2B To supply goods and services in a competitive environment a business needs to discover: What to make and sell. How many to make and sell. Who to sell to. How to encourage people to buy. How much to charge for what is sold. The marketing function in any organisation must link production to consumption. To do this, marketing must ensure that the demands of its customers are met by what is being produced; whether products or services or both....
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...competitors out of the market. This in essence is a production strategy, and works very well for basic commodities such as food products. For example, Wal-Mart offers lower prices than its competitors and makes its profits through selling large volumes of products. However, in order for this approach to work, it has to rely on external environment conditions, such as import policies, industrial relations, tax policies and barriers to entry & exit, to be favorable. Also, all products have competition, since they are all fighting for a share of their customers. In short, the ability of these firms to operate profitably is not within their control. Another strategy a firm could employ is the product strategy. This would ordinarily entail taking advantage of a population growing in number and purchasing power. The firm in this case makes money by selling consumers high quality, durable products at slightly higher prices; the sales revenues will be slightly lower but good sales margins will ensure profitability. This model works especially well for clothes, electronics and other household goods. However, in order for a firm using this approach to remain profitable in the long run, the consumer base has to always grow in population and affluence. Any economic & political conditions changes may pose a threat to this. An organization may also take a customer oriented marketing strategy. According to this approach, the customer is the most important...
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...Table of Contents Introduction 2 Marketing process 2 Marketing oriented approach 2 Macro environment and Murphy 3 Microenvironment of Murphy 4 Segmentation for Murphy 4 Target market for Murphy 4 Customer behavior 5 When they enter the store alone 5 When they enter the store with the kids 5 Positioning of Murphy’s paper and pen 5 Product development to gain competitive advantage 5 Distribution channels for Murphy 6 Price of Murphy Products 6 Promotion strategies for Murphy 6 Extended Marketing mix of people 7 Recommendations 8 Introduction Murphy is a small company and hence, they never gave due importance to marketing but it will be very difficult for the company to survive if this is the case even in the near future. Marketing will allow the customers to be aware about the availability of the product. Murphy should understand its customers and produce products accordingly rather than that of pushing the products that they have with them. Marketing process Every marketer at Murphy needs to understand the marketing process so that they can implement the same at Murphy so that they achieve success. The marketing process is discussed below: - 1. Situational Analysis – Marketing process starts with situational analysis so the marketer at Murphy can understand the unfulfilled requirements of the customer. As a part of situational analysis, the marketer should undertake 5C analysis, SWOT...
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...Cost Pricing Approach 7 3.0 Recommendations 8 3.1 BRANDING AND POSITIONING 8 3.2 Alternative Pricing Approach 10 4.0 Conclusion 11 List of reference. 13 Executive Summary The objective of this report is to identify the target market and position the product well in consumers mind so as to increase the sales and market share. For a product to be accepted in the market by consumers, an effective marketing strategy must be implemented. This report is divided into five parts which are introduction of the scenario, followed by identifying the consumer segment, business segment, merits and demerits of cost oriented pricing, branding and positioning and an alternative pricing approach for the eco shack. Behaviour segmentation variable for consumer market is an appropriate way to identify the consumer segment for the Urban- Eco Shack. This process of segmenting the market involves analyzing the behavior of consumers in terms of usage, price sensitivity and the response towards brands. The features of the Urban – Eco-shack can influence the behaviour of the customers like the size of the accommodation makes it suitable for city dwellers as it is highly occupied with buildings and houses, therefore, the volume usage in urban areas will high and this is an appropriate consumer segment for the Urban Eco-shack. On the other hand, retailers who are close to the market in the supply chain are the profitable business segment for Doug and Pauls Urban and...
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...Executive Summary The purpose of this report was to examine the results of the effective implementation of customer relationship management (CRM) systems. What is the most effective way to realize all of the benefits from CRM system implementation? Research for this report included a review of current literature on effective implementation of CRM systems and the market data on popular CRM systems on the market available on Gartner, the leading information technology research website. Major findings indicate that just simply buying into a CRM system would not bring the promised benefits associated with the system. That is only possible if the implementations of the system is backed by appropriate strategies, supplemented by the aid of high tech IT solutions and it is the most important to know how to use the integrated information system to the best advantage. For the new CRM system being implemented in the company to be a success, the company has to evolve and implement a strategy that will iron out the kinks from the existing system to the new. The success of this endeavor depends greatly on the top management, who has to showcase their commitment and, most importantly, lead the way, guiding the rest of the employees to a new direction, which, when supplemented by the new IT infrastructure, can help give the company the competitive edge it so desires. At the end of the day CRM is only a tool, which can bring tremendous success to the company only if it is implemented and...
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...Table of Contents I. Introduction 2 II. Customer portfolio concept 3 2.1 Concept of customer portfolio and its application in company 3 2.1.1 Customer Lifetime Value (CLV) 3 2.1.2 Market segmentation 4 2.1.3 Sales forecasting methods 5 2.1.4 Activity based costing 6 2.2 Customer portfolio application of “CDNow” 6 2.3. Concept application for e-tailer companies 8 III. Conclusion 10 References 11 Introduction In business, customers are always considered as the basis of a company’s profitability (Gupta et al., 2004; Hogan et al., 2002; Rappaport, 1998; Wayland and Cole, 1994). It leads to a customer – centric view in practice in general as well as in marketing in particular. According to Rust et al., (2005), the limited resources allocated efficiently for maximizing value requires a relationship – oriented customers and strong, long – lasting customer retention. Focusing on current customers is the right strategy, especially offering a positive lifetime profitability relationship when acquiring new customers is more expensive than retaining existing ones (Morgan and Hunt, 1994; Reichheld and Teal, 1996; Bitran & Mondschein, 1997). However, there is not only lifetime profitability relationship, but also different treatments of customers in marketing tools are advisable. Determining the right strategic balance between acquisition...
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...Internet Customer Acquisition Strategy at Bankinter Bankinter is a small independent national Spanish bank founded in 1965 and operating through various customer acquisition networks and distribution channels. Among their competitors, which are traditional brick-and-mortar banks and Internet-only banks, Bankinter positions itself as innovative, multichannel and low-cost provider of financial services. In 1992, Bankinter started to change its strategy by closing some of its branches and focusing more on product and channel-oriented marketing. In line with its innovative positioning, Bankinter was the first Spanish bank to offer telephone, electronic and internet banking. In 1999, as part of their polarization strategy, Bankinter launched its e-collaborator program aiming to attract new Internet customers at low cost. Branch 8700, Bankinter’s Internet branch, experienced rapid growth leading to decreases customer acquisition costs and increases in costumer acquisitions. After its alliance strategy with highly trafficked dominant online portals that proved to be cost-intensive and didn’t lead to new customer acquisitions, Bankinter launched its e-collaborator program in 2001. E-collaborator is a low-cost acquisition tool placing banners on Websites that link the user directly to ebankinter.com, Bankinter’s online site launched in 1997. As it is a very cost-effective program, it resulted in lowering per customer acquisition costs while increasing new customer acquisitions. Apart...
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