Loyalty, Geocomercio, franchise, market management | Concepts of Marketing
Table of contents
1. customer loyalty2. advertising photography
3 franchise
4. sources of information and analysis in media planning
5 sales force
6 Geocomercio
7 management of market
8 tools for market analysis
9. market research
10. What is the sales force
ITEM 01
CUSTOMER LOYALTY
Increase the cost that customers switching to the competition and increase their loyalty, creating value in the relationship, lasting and profitable for your company.
Looking at the customer loyalty from an economic perspective, we get an interesting conclusion: faithful to the company clients are those who has a great cost change of company. In other words, loyalty is not a result only emotional attraction felt by customers for a product or for a particular brand, also is a direct result of associated costs posed by the change the competition.
While the service offered by an airline is not usually very different from that of other companies why a customer who flies every week remains faithful to x airline?
Tickets are expensive, poor personal attention, there are frequent delays, etc., then what do you have x company of airline that makes that customer and repeat every week?
The answer is simple: the most important reason why this client prefers to take one x airline flight to another competition, is because the airline has made difficult the fact to change to another company. Thus, if the client has earned the status within the airline company and if I had to change company, would lose all the advantages and benefits associated with that status. So, the reason why it remains faithful to the airline, is because the costs to replace it by another company, you would be a loss of important benefits.
If a person uses a laptop Apple long ago, it will be a user advanced due to familiarity with this system. If I had to switch to the Microsoft Windows system, there would be a large cost associated to this change: their productivity would decrease, the level of frustration by having to learn a new operating system would be high and would not be possible to use any of its current programs, which would mean having to purchase more software, already as above not would serve you.
The client remains faithful to Apple because the total cost associated with the change to Windows is very high.
But while switching from Apple to Microsoft or x airline to another airline has high costs of change, the change from a car manufacturer to another does not. The learning curve for driving a different vehicle model is very low. So switching between brands it is not always so difficult or expensive, will depend on the type of product or service first and second, barriers of change that can implement the company. We are going to see some of the factors that can be used to increase customer loyalty, also increasing the costs of change.
Cost of change due to a differentiated product offering
An obvious way to create loyalty is to possess a unique and distinctive product. For example, using an electronic calendar (PDA) Palm as a system to store and organize contacts and events. A unique feature of the Palm operating system is its language "Grafitti", which allows to enter new annotations, by writing directly on the touch screen with a special pen. It is not only the "graffiti" language of the operating system of the Palm, but learning that has had to make to optimize the process. If it will be changed to another type of PDA, based on another operating system, should be practically lessons forget and start again.In addition, it would also have the problem of transferring data from the PDA to the other system, so that the costs of change would be even greater.
Palm has successfully created its own operating system, which makes true to Palm, since change to another company with another operating system, would require stop using features that are very effective for a Palm user.
Costs of change due to benefits and status achieved by the time
A very important factor to take into account, is the status that is owned in a company, which allows the client to receive services and special benefits as a result of his faithfulness. Thus, Palm for example, in addition to creating a unique and differentiated product, increases the costs of change offering exclusive services to its customers. If a person registers their special e-mail service, you will receive one or two emails each week with tips, tricks, news and offers in accordance with the user's profile. If the customer notifies that it has no interest in receiving information on games and communicates that it has a level of advanced user, Palm will fit these preferences and will only send you communications that match your profile. To change to another PDA, the person would have to report back everything what you like and dislike, assuming even that subject it to reach to worry about this new company. The customer remains faithful to Palm, because it has made an effort to "be known" and Palm uses this information to provide you with a personalized service.Returning to the example of the airlines, when a client is presented at the x airline desk and says that it is "Gold customer", this feels important to have reached this status, thanks to the flights made with the company, getting also some services and special thanks to your loyalty benefits, such as: a toll-free telephone to contact a customer service agent priority boarding with preferential access to the aircraft, immediately available to a lower threshold of 10 kg of the maximum permissible weight, safe travel abroad assistance, a VIP room with all the services and amenities for waiting, etc. The combination of privileged status and recognition, along with the services and benefits that are received as a result, makes sure it remains faithful to the company.
In addition to convenience, there is a purely economic reason, if we consider for example a person to fly once a week, and every time you take the plane, needed 20 minutes to check luggage and another 20 minutes in wait to pick it up, means that it consumes 40 minutes in the first leg and 40 others in the back a total of 1.20 hours weekly. In the course of a year the sum reaches 69 hours. But when it reaches the status of "Gold customer", as a frequent passenger of the company, have priority boarding and rarely has to check the luggage. Which means a very significant optimization of the time which one has, very important element in travel, especially for business. The client, without a doubt, decide to maintain their fidelity to Iberia for this important reason.
Cost of change due to an emotional resistance to change
Change is hard. Something happens when we make a huge investment to emotional and personal level. The time that we devote to paint our houses, learning to drive on the shelves of our nearest supermarket, learn to use a new computer, or become a recognized member of an airline, carries us some emotional ties. Due to the feeling that we have some things in which we have invested much effort and dedication, we cling greatly to them. This emotional investment translates into a cost by the change. We are left with what is familiar because we try to avoid changes and they are disturbed by the uncertainties.We have put some examples of the many factors that can increase the costs of change. And while we think about loyalty as an emotion, in our personal lives is quite practical to also think about it in pure economic terms.
Increase the cost that customers switching to the competition and increase their loyalty, creating value in the relationship, lasting and profitable for your company.
ITEM 02
ADVERTISING PHOTOGRAPHY
In advertising photography, used a range of special techniques so the images are attractive for the consumer, and thus be an element of greater influence over the Seer. Usually advertising photography is presented in way that provoke or promote a decision.
The advertising creation was supported by new software and I enter with force the post production, "publicity" photos were in fact formerly calls "artwork", since they were carried out once or retouched with airbrush on the emulsion, work of if to experts. Photography also follows new trends imposed by fashion and cinema, the use of lenses or trends of "color".
ITEM 03
FRANCHISE
Origin of the franchise
The franchise term was already used in the middle ages, referring to the authorizations or privileges that sovereigns granted in favour of any citizen in relation to certain commercial activities, or also of fishing and exploitation of forest resources. The origin of the word franchise could well be the French term franc which in medieval times was applied as previously been exposed; in fact the first document that reflects the granting of a franchise is dated in March 1232, and it was granted in the French town of Chambey. With the advent of the modern age we lose track of the term franchise in France, of which there is documentary evidence already entered the 21st century, and this time in the United States of North America. In effect the needs of expansion of the industry of the North, triumphant after the civil war, leads entrepreneurs to seek the collaboration of merchants from the South and West. Reappears as the franchise term, and this time already contains the essence that will characterize this until our days, i.e. the collaboration between independent business owners to obtain a common purpose.If we date the irruption of the franchise as commercial distribution system, is no doubt 1929. General Motors uses a contract favoring the associations between the headquarters and its distributors much favouring collaboration between the two sides, but maintaining the independence of Parties at reasonable levels. So it was like reaction under the antitrust laws aimed to prevent vertical integration of distributors and producers facilitated the effective system of franchises, whose development vitality and success attests to its current expansion to virtually all sectors of the economy. But not only in the United States of North America companies were aware of the advantages of this system, in old Europe also France had entrepreneurs with vision for the future. Thus was as wool Lainière de Roubaix factory owners assured the commercial outlet of its products creates the signature Pingouin, associating with a large number of retailers who, by signing the contract were the exclusivity of distribution of Pingouin products in your geographical area. The 1950s they met the expansion of the franchise system as we know it today, and it was in the United States of America that found the conditions necessary for its definitive take-off, today being the nation that leads this system of proven commercial success.
General of franchise concept
According to Meyer, H. in his book entitled Marketing, sales to the retail franchises, concessions, or licences, defined as a contractual agreement whereby a parent company (franchisor) grants you a small company to an individual (franchisor) the right to do business under specific conditions.What was said above, allows us to summarize in a simple way, that a franchisor has the right name or trademark and sells the right to a franchisee; Knowing this as product license.
In the more complex form, business license format is a more extensive and continuous relationship that exists between two parties, which often includes a full range of services, including selection of site, training, supply of products, marketing and also sponsor plans.
The spectacular growth of the dealers represents the rapid increase of two trends: the rush of individuals to become their own bosses and the need for companies to find more efficient and inexpensive ways to expand.
Meyer, H. and Kohns, S. set the time during which a licensing agreement is valid is called followed by the contract and can range from five years to perpetuity; where are most of the agreements for twenty years. After the period has expired, the franchisor often has the right to repurchase or resell the unit.
Unlike Kennedy, argues that the franchise is a privilege granted by a governmental agency to an individual, a partnership or a corporation, for use of a public company, a street or a road, or space above or below the street or highway. The franchise may be for a fixed term of years, for an indefinite period or perpetuity.
Phillips Kothler in his book entitled marketing direction established as concept of franchise or concession as an agreement with the dealer in the foreign market, providing the right to use the manufacturing process, brand, patent, trade secret and other points of value, in Exchange for fees or royalties.
Then will be what is the franchisor in return for the franchise:
• A right of franchise. It is an advance payment of only once that dealers make directly who granted the franchise to be part of the system of concessions. The payment reimburses the franchisor costs location, qualification and training of the new dealers.
• A royalty. It is an annual payment, between 1% and 20% of the sales of the dealer, who is paid to the franchisor. These payments represent the costs of doing business as part of an organization of concessions.
• A right of publicity. It is an annual payment, usually less than 3% of sales, covering the corporate advertising.
• Earnings from sale of equipment, supplies or services or finished products to the dealer.
In view of the above mentioned should be made clear that not all dealers win, since allowances are subject to the fate of the economy in which gravitate. If an economy is growing, also franchises grow, otherwise; When the economy of country or region not develops, franchises may not do so. But if compare with other businesses small, the chance of survival are better in the case of concessions, because that many figures show that approximately 5% of the total number of franchises is they discontinue every five years, compared with 50% of new independent businesses.
Advantages of franchises
According to the United States small business administration, the franchise has several advantages over independent retailers. They are:• Reputation: it is an established and well-known licensing system, the new dealer doesn't have to work to establish the reputation of the firm. The product or service being offered already is accepted by the public.
• Working capital: costs less money to operate a concession business, because the franchisor gives the dealer good controls of inventory and other means to reduce costs. When necessary, the franchisor can also give financial assistance for operating expenses.
• Experience: the advice given by the franchisor outweighs the inexperience of the new owner.
• Management assistance: a small independent store owner has to learn everything, and an experienced retailer may not be a master in all aspects of finance, statistics, marketing and sales promotion. The best franchise companies give the dealer continued assistance in these areas.
• Utilities: assuming reasonable costs of franchise and supply agreements, the dealer usually can expect a reasonable profit margin, because the business is operated with the efficiency of a chain.
• Motivation: since the dealer and the franchisor benefiting from the success of the operation, both work properly to do so.
Advantages of the franchisor
The motivations of the franchisor to create a franchise are essentially as follows:1. have access to a new source of capital, without losing or diluting the control of the marketing system.
2. avoid the high fixed costs which usually involve a system of torque distribution warehouses.
3 cooperate with dealers independent but highly motivated as owners of their businesses.
4 cooperate with local businessmen, well integrated in the middle of the city, region or country
5. create a new revenue stream based on knowledge to make commercial technician who is possessed.
6. perform a rapid increase of sales, succeeding a snowball effect.
7. benefit from economies of scale thanks to the development of the franchise system.
Franchisors provide an initial and ongoing support services to its franchisees initial comprise mainly: a study of market, a study of localization of restaurant franchisee, assistance in the negotiation of rent, a conception of the interior decoration of the point of sale, the formation of labor, management accounting and financial models. Ongoing services include operating track, promotional material, training of managerial and employees, quality control, advertising nationally, centralisation of purchasing, information about the evolution of the market, accounting and financial, auditing approved insurance, etc.
Advantages for the franchisee
Franchisee motivation is primarily benefit experience, reputation and warranty, attached to the brand image of the franchisor. Add to this basic motivation the following considerations:1 be able to start a business with little capital
2 reduce the risk and uncertainty, since it is a proven successful project.
3 benefit from a better purchasing power to the franchised chain providers.
4 receive training and continuous assistance provided by the of the franchisor.
5. have access to the best locations, thanks to the popularity and the financial power of the franchisor.
6 receiving aid for the marketing management and accounting and financial management of the franchise.
7 have well-designed premises and interior decoration.
8 benefit from ongoing research and development of new products or services.
9 be able to create their own as independent business belonging to a large organization.
The franchise agreement is a relatively flexible form of collaboration between the franchisor and the franchisee. However, there are three fundamentals essential to the strength of a franchise agreement, which are:
or willingness to work jointly and severally.
or reciprocal acceptance of a right to transparency.
or the legal basis for the formula.
This last condition is essential; the franchise is an original method of distribution of a good product or a good service (a formula for success), not will never be a solution to remove a trouble or safeguard of a firm in difficulty to be declared "franchisor" without having made herself the test of its formula.
Disadvantages of franchises
There are also disadvantages to the dealer and some of them are presented below:• Rights: rights that the franchisor charges for the use of the name of the company, the prices charged for supplies and other costs can be very high for a particular locality. In such a way that you can incur loss or low margins of profit for the retailer.
• Less independence: since the dealer must follow the patterns of the franchisor, the retailer loses some of its independence.
• Standardisation: The procedures are standardized and dealers do not have much ability to use ideas of his own.
• Slow: due to the size, a franchisor may be slow to accept a new idea or adapt its methods to condition changes.
• Cancellation: it is difficult and expensive to cancel an agreement of concession without the cooperation of the franchisor.
• Control: the franchisor has less control over the licensee, than if mounted its own production facilities.
• The competitor: If the dealer is very successful, the firm loses profits and when his contract ends it could meet that has grown a competitor.
Types of franchise
The franchise or the concession has been the development of faster growth and increased interest in recent years. Although the basic idea is already old, some forms of the concession are very recent. Three forms of concession can be distinguished:• The first is the system of issuing retailer sponsored by the manufacturer, which exemplifies the industry automobile. So the Ford concessions to distributors that sell their cars and dealers, who are independent stockists, accept compliance with several conditions of sales and services.
• The second is the concession system manufacturer-sponsored wholesaler. This system is located in the soft drink industry. Coca - Cola, for example, licensed to bottler (wholesale) in several markets, which acquire concentrates that add carbonate, bottle and sell to retailers in local markets.
• The third is the system of concession the services firm-sponsored retailer. In this case, a service firm organizes a whole system to carry his service in an efficient manner to consumers. Example of this type of concession are in the business of selling vehicles (Hertz, Avis), in the fast food business (Mc. Donald's, Burger King), and motels (Howard, Johnson, Ramada Inn) business.
Characteristics of a good franchise
A good franchise should be first and foremost a proven and transferable success that can be reproduced by the franchisee in its territory. A good formula has the following characteristics:• Related to the marketing of a product or service of good quality.
• The demand for the product or service is universal, or at least, not limited only to the region of origin of the franchisor.
• Leaves the already established in a place franchisee a right of first refusal at the time of implementation of one or more franchises in their territory.
• Provides for an immediate transfer of know-how and an effective training of the franchisee in marketing techniques and the methods of the franchise in question.
• Does your tests with a pilot company.
• Establishes the modalities of a continuing relationship between the franchisor and the franchisee with the aim of improving the conditions give exploitation of the franchise and share innovations, ideas for new products and services, etc.
• Explicitly describes the initial contributions (teaching, training, know-how) and perms (stands for marketing, advertising, promotional activities, research and development, various services) of the franchisor.
• Expressed immediate payments (initial rights) and continuous (canon) that the franchisee must be done.
• Involves the franchisee in the process of defining future directions for the franchise and makes it to participate in the life of the franchise.
• Provides for a procedure of renewal, renegotiation and cancellation of the franchise contract, as well as a possibility of rescue for the franchisor.
The franchise offers an interesting option to conventional or controlled vertical structures. Indeed, in a franchise network, each store investment is made by the franchisee, owner of the store. From the point of view of the franchisor, the creation of a network of franchise allows you to have quickly and with little cost of an international business network without investing directly in the ownership of the network, but controlling it by contract.
The franchise is a distribution system integrated, controlled by the franchisor, but funded by the franchisees. A successful franchise is a good partner in which the success of the franchisor and the franchisee's are indissolubly United.
Features that should find a franchisor in a franchisee
Regarding the experience of the franchisees in recent years, almost whenever there has been success, is has been able to perceive that the master franchisee meets most, if not all, of the elementary characteristics that must find a franchisor for the development of his concept in a foreign country:• Knowledge of the local market.
• Knowledge of the market segment that are interested in the franchise.
• Flexible attitude
• Financial resources
• Administrative resources
• Ability to communicate properly with your franchisor
• Experience of business in the country of the franchisor
• Knowledge of the real estate market in your country
• Ability to help in the selection of the potential suppliers of the system
• Good relations and experience in dealing with government officials in the country that joined the franchise.
When the multinational franchisee, which attempts to penetrate into a foreign market, i.e., omitted to select its foreign franchisee in the light of the criteria mentioned and is guided only by the economic (situation that is unfortunately widespread), the chances of failure are important. In conclusion, for those entrepreneurs who are considering franchising their business; they will have to consider that the franchises are a market solution to a market problem. Therefore, clearly, it is inappropriate to use franchising as a solution to problems that are purely financial in nature.
Elements to diagnose the analyzing of a business
It is very important to establish the minimum criteria that must take into account the franchisors to determine if a business is a franchise. These criteria, will help us to enter the market of franchises, with the safety forward, despite the challenges and difficulties which may exist in these markets.Basic and minimum criteria that determine the successful analyzing of a concept:
• We can conceive of a concept susceptible of franchise if the name brands that distinguish it are not adequately protected on the one hand, or any other legal means provided for in the legislation, and in addition, the importance which the franchisor brand have honors of the public within the market.
• Have not been successful concepts of franchises allowing its franchisees operating margins that cannot be compared with industry standards.
• Have been and continue to be network only those businesses whose product or service meets a real need in the market which intend to develop. I.e., to provide an added value to the market, and that is appreciated by the consumer for that market.
• This point should not be the number four, but one, because that may not have chances of success when a company decides to launch a franchise without due experience and seniority.
• In franchises, very unlike the license of trademarks and contracts of distribution, the franchisor must live by and for the franchisee. The theory suggests that everything should revolve around the franchisee; advice, logistical and operational support, inputs, suppliers, etc.
Coverage of market strategies
If the chosen distribution channel is an indirect channel, is the problem of the number of intermediaries to recruit for the rate of coverage of the market necessary to the realization of the goals of penetration. Several strategies of market coverage can be considered.• Hollywood offers gum at all sites that can be; in all the food stores, at tobacconists, in the stationery stores, auto dealers, in peddling.
• The Pierre Cardin company distributes its clothing in shops specialized, carefully selected products, and ensures that it is represented by the best.
• Volkswagen distributes its cars through dealers; He is assigned to each dealer a region where no other garage shall be entitled to represent the brand.
Hollywood practice intensive distribution, Cardin a selective distribution and Volkswagen an exclusive distribution. The choice of the strategy to adopt for a given product depends on the characteristics of the same and the objective pursued by the company within the competitive environment in which is.
The exclusive distribution and franchise
An exclusive distribution system is the extreme form of selective distribution. In a predefined region, a dealer-only receives the exclusive right to sell the brand and usually undertakes not to sell competitive brands. In return, the dealer accepts not referencing brands competing in the same category of products. A strategy of exclusive coverage is useful when the manufacturer wants to differentiate your product by a policy of high quality, reputation or quality of service. The close cooperation between manufacturer and distributor facilitates the implementation of this programme of quality. The advantages and disadvantages of this system are those of selective distribution, but expanded. A particular form of exclusive distribution is the franchise.Franchising is a system of contractual vertical marketing organized the distribution of goods or services. There are franchise agreement when, by contract, a company called franchise grants to another the right to exploit trade in a delimited territory, according to defined rules and under a banner or mark given. The company granted, usually offers its franchisees a continuous support enabling them to trade in the best possible conditions in their respective territories. It is, therefore, as well as paying the right of use of a trade mark, and to benefit from a continued contribution of know-how by what the franchisee is committed contractually to deliver to the franchisor initial rights - both flat - or a percentage of their sales. The franchisee purchase, in fact, a formula for success which the franchisor and perhaps other franchisees have made the test in other territories.
The market of franchises
In recent years franchises (franchising) business system reached an explosive development thanks to the globalization of the economic life of Nations aimed at increasing openness in this process of transformation of capitalism.Renewed strategies of marketing products and services put in the foreground the alternative of adding a greater number of mouths of dispensing with benefits for the franchisor and the fianquiciado.
According to the U.S. Commerce Department estimates, at the end of this century a 50 per cent of retail sales will be handled within the franchise system.
This interesting field is not exclusive to developed countries, the franchises have no borders. For several years Latin America and other emerging markets transits their own experiences with a more generous in the Brazil display, following the Argentina, Mexico, Chile and Colombia.
Per o also began to notice even in the Socialist markets and not missing local by franchises in remote points of the planet. In many cities under different climates and latitudes, it is possible to taste the famous Big Mac, rent videos of the Blockbuster chain, sleep in the chain Holiday Inn, among others.
The franchisor and offer an opportunity, with many constraints, but provides an opportunity for who decides to take on the challenge.
There are a large number of entrepreneurs that includes grant franchises of your business, with security that doing so can resolve their expansion needs, for those who ever have dreamed of owning their own business, the franchise has become an option interesting and safe to achieve their purpose in an uncertain business environment.
The franchisor is the task to set the trade name, choose the corporate colors, design its public image, define the product, write operating manuals, finalize the transfer of the technology involved to who receives the license, control quality, determine the clothing of the employees, establish advertising guidelines, provide ongoing advice and give training to who runs the license.
The communication of the brand's global image appears as the essential condiment to ensure the success of the business. This, coupled with the business strategy and the target make up the tripod that supports this activity.
Latin America is a much sought-after by firms from the United States, the country of origin of the franchise system and the place where the sector is more dynamic. But a more recent trend shows that companies in Latin America also are trying to, through franchise win markets beyond their borders.
In the same way that the phenomenon of internationalisation departed from the United States, the recent analysis of this market bring to light other changes in the business that, as development continues, would be reflected in Latin America.
It is not uncommon that a so agile and versatile as the franchising sector responds to economic and social changes quickly. The increased orientation of the economy towards the generation of services, the incorporation of more women into the labour market or the progressive aging of the population are some of the trends that have an impact on the sector of the franchises.
Thus, expected that the business of growing between those who work for franchises are those related to the provision of services, such as repairs, home cleaning, maintenance and repair of cars, medical care, education and training or telecommunications. They also are likely to bloom business services, like accounting, distribution of correspondence, temporary staff, impressions.
Although the situation of the Latin American countries differs quite, some like Mexico, Argentina and Brazil this type of franchises already exists. As penetrating drums of the tribes of yesteryear, the franchising boom expands all over.
In the past five years the system of franchises in Chile experienced an average growth of 30%, a figure that leaves it well in the process of expanding this business in Latin America. After experienced boom, the franchises have lately entered in a stabilized straight and steady growth. Fresh data indicate that today operate in that country 65 companies of franchises, which come from different countries and billed $ 200 billion annually. The equivalent to 0.01% of the gross domestic product of Chile. This activity gives direct employment to more than twenty thousand people.
ITEM 04
SOURCES OF INFORMATION AND ANALYSIS IN MEDIA PLANNING
Sources of market
Patterns of sales: media plans tend to vary the amount of advertising that is assigned to each sales territory. Reports of sales in each market are typically used to geographically allocate resources.Patterns of sales by month: the advertising must be reflected in the calendar of sales and the seasonality of products. To plan for these it is necessary to keep track of trends in consumer demand.
Distribution patterns: has to do in terms of the availability of stock from dealers.
Patterns of the advertising of the competition: know this pattern will not help in the decision-making process to determine our standard of advertising. P. Ej. If you will do on another market, in the same market with another mode, if it will be competing in the same conditions, etc.
Creative sources
Features of the theme: how it is said and which States will decide on media will be the message.Characteristics of the message: creative tactics and tone of the message also we indicate for example in that type of television program will expose the message.
Research and creative performance: the reaction of the audience to the advertising message will give us information to make decisions about the patterns of continuity and the number of occurrences.
Media sources
Popularity of the media: to know amount of audience to possess and in that measure that audience matches the profile of the consumer went to which the message is.Costs of transmission in the media: is to know the cost of the campaign according to the proposed budget.
Characteristics of media: how much influence the audience? What about as credible? etc. It helps to estimate the commercial impact on the target audience.
Opportunity: when to advertise?
Here comes into play the concept of opening, which is the time in which the consumer is more receptive to information.
Opportunities according to the season. The opening exists when consumers consider their needs depending on the time of year. (ice cream, beverages, chocolates, coats, etc.)
Opportunities according to holidays and vacations: so is obvious.
Opportunities according to the day of the week: each day of the week is not equal in shopping traffic.
Opportunities depending on time: the opportunity is dictated by the needs of people during the day the advertising in the media must be set when the need is high.
Duration: do long FAQ.
The pattern selection depends largely on a large number of factors including budget, cycles of use by consumers and competition patterns.
Pace of the campaign
It has to do with the times and frequency of the duration of the advertisements.The concept of openness come into play seasons, months, days and hours. To meet these objectives involves a balance between resources and the duration of the campaign.
A continuity strategy is a commitment to disseminate advertising without sacrificing impact. There are also other methods such as rhythm patterns and the patterns of momentum.
Patterns of Cadence: maintain a pattern on a regular basis in order to achieve recognition for permanence and continuity. Advertising is designed to intensify the publicity before an opening and then reduce to less intense levels.
Impulse patterns: bet to achieve memory using saturation of exhibitions and empty. Alternating periods of intensive advertising and non-advertising periods. What is expected when using periods without advertising is consumers to remember the brand and its advertising for some time after that stop the ads.
Ratings
Gross impressions: prints represent the opportunity for a person to be exposed to a program, newspaper, a magazine or a location outdoors. Prints measure the size of the audience either to a single medium or by a combination of vehicles. It is called gross because he has not calculated how many different people looked at the program.Gross audience rating
Rating (percentage of exposure) is an easiest method to measure the intensity of the programs because it converts the bulky in percentage figures. The sum of the full potential of exhibitions as a percentage of population that includes the target audience.Scope: the scope is the percentage of the population of the audience target, which is exposed when least once a message from the owner within a certain time frame. The single scope can be calculated when data of research of hearing media or projections of statistical models have.
Frequency: it is the number of times that a consumer is exposed to an ad.
The gross audience rating and the estimate of the reach (%) are needed to find out the average frequency only. It is also possible to calculate the gross impressions and not duplicate prints.
Communicative tone: or "Basic approach" is what gives unity or identity to the campaign, i.e. to perceive different ads who want to express the same. It is the particular way.
Social values: which are at stake in this campaign. I helps if I have in mind the social values of the time. Risk: variable social opinion.
SHARE: percentage RATING: quantitative
ITEM 05
SALES FORCE
Objectives of the sales force.
The objectives of the sales force should be based on the character of the main markets of the company and the position that you want this in these markets. Sales person to person are contact and tool more expensive communication used by the company.On the other hand, sales of person to person are also the most effective tool in the stages of the buying process, as the education of buyer, negotiation and the stages of closing deals. It is very important that the company will consider all care where and when to use sales representatives to facilitate the work of marketing.
Sales representatives perform one or more of the following work for their companies:
• Survey: seek and cultivate new customers.
• Distribution: they decide how to distribute their scarce time between potential clients and customers.
• Communication: they skillfully communicate information about products and services of the company.
• Sales: know the art of selling: approach, presentation and response to objections and closing sales.
• Service: provide customers several services: consulting, technical assistance, financing design, and expedite shipments.
• Collection of information: conduct research on market and work of recognition and customer information.
• Assignment: decide which customers assign products during periods of shortage of them.
Typically, the companies defined specific targets for its sales force. If rules are not established, sales reps can spend most of the time selling products set to existing accounts, and neglecting new products and potential customers.
The mix of sales reps work varies depending on the State of the economy. During periods of shortage of products, sales representatives discovered that they have nothing to sell. Some companies come to the conclusion that need less sales representatives. But this way of thinking does not consider the other papers that the dealer plays: assign the product, consulting to dissatisfied customers, communicate company plans to remedy the shortage and sell other products that are not scarce.
As companies move toward a stronger market orientation, their sales forces need to focus more on the market and focus more on the customer. The traditional view is that the seller must worry about volume and sell, and that marketing department should be concerned about the strategy and marketing profits. The most recent prospect is that sellers need to know how to generate profits for the company and customer satisfaction. You should know how to analyze sales data, measure the potential of the market, gather information and develop strategies and marketing plans.
Structures for sales force options:
• Territorial structuring: simpler sales organizations, is assigned to each representative exclusive territory where he will represent the entire line of the company. This type of organization has the advantages of:• Generates a clear definition of the responsibilities of the seller.
• The territorial responsibility increases the incentive for the sales representative to cultivate local business and personal relationships.
• Travel costs are reduced.
When designing the territories, the company seeks to certain territorial characteristics: the territories are easy to manage, their sales potential is easy to calculate, reduce total travel time, and provide a total load of sufficient work and fair as well as the potential of sales for each salesperson. These characteristics are achieved when deciding on the size and shape of the territory.
• Size of the territory: can be designed to provide the same sales potential or a same workload. The territories with equal potential provide each sales representative the same revenue opportunities and offer the company a parameter to evaluate the efficiency. However, since the density of customers varies in each territory, the territories with equal potential vary widely in their size.
• As an option, the territories can be designed so that the workload is even. Each sales representative can adequately cover their territory. However, this principle originates some variations on territorial sales potential.
• Form of the territory: territories are formed by combining smaller, such as counties or States units, until they joined in a territory of a potential for sales or specific workload. The territorial design must have the account the situation of natural barriers, the compatibility of adjacent areas and the adequacy of transport and similar factors. The form can influence the cost and ease of coverage and the satisfaction of sales representatives. The most common territories are circular, clover or wedge shaped.
• Structured by product: the specialization of products is guaranteed in particular where products are technically complex, little related or very numerous. This specialization might not be the best approach if the various lines of the company's products are purchased by their customers.
• Structuring according to the market: companies tend to specialize its strength of sales according to lines of industries and customers. It is possible to define independent sales for different industries and even for different clients. The most obvious advantage of market specialization is that each sales representative can acquire knowledge about the specific needs of customers. The main disadvantage arises when different types of customers are scattered throughout the country.
• Complex structures: when a company sells a lot of products to many types of customers in a wide geographical area, frequently combines several principles d sales force structure. Representatives may specialize by territory - product, territory - market, product - market, etc. A sales representative can then report to one or more managers of line and staff managers.
Colonization of the sales force
By territory or areas
It is necessary to stress that the object of the delimitation of territories is not any way get the uniformity of the sales of all of them.Unless all customers are equal, it is obvious that number you thereof will not be equal in all the territories, since, as we have said, this is not a good method of fixation of limits. In the same way customers give them different territories will not necessarily produce identical results figures.
On the other hand the territories are delimited give thereby generate a same amount of work and will mandate to address judge the result you expected of the tasks assigned. For this reason payment to vendors is strictly according to their results that is through commissions on sales made to customers usually constitute a series of problems.
Some territories are more juicy others on commissions, which are accomplished with independence to give them the seller endeavours; on the other hand sometimes sales are both due to the actions undertaken by other sectors of the company as to the achievements of the seller.
At the time of a reallocation of territories sellers show is reluctant to let go of their largest customers. In short whatever the chosen method of remuneration and motivation necessary to avoid those that restrict the freedom of the address to balance loads work equitably and in consequence with sales strategy.
By products
Sellers must know their products, especially if the products are many, are not related and are complex. This need, coupled with the trend towards the administration of products, have led many companies to adopt a product structure for its body of sellers in which case the body of vendors sell product lines.For example Kodak uses a sales force for its film products and other industrial products.
However, the product structure can create problems if a given customer either buys many products of the company. Baxter International, a company that sells supplies to hospitals, for example, has several divisions of products, each of them with a separate body of sellers. Several sellers of Baxter could visit the same hospital the same day.
This means that they travel the same routes and await for the purchasing agents receive them. These extraordinary costs should be compared with the benefits that offers greater knowledge of the product and attention to the individual products.
Types of clients
Bodies d vendors for different industries or clients, can build to meet current customers as opposed to find new ones, and split important accounts, as opposed to normal accounts.E.g. Xerox classified customers into four basic groups, each of them attended by different vendors. The first group is made up of large national accounts located in many discernidos points. These clients are served by about 250 to 300 managers from national accounts. Then these large accounts which, although they are not nationals, may be located at various points within a region; These are managed by some of the 1,600 and peak large Xerox account managers.
The third group of customers is made up of normal commercial customers, with a potential for sales of between 5000 to 10000 dollars a year and are sought by representatives of accounts. All other customers are attended by representatives of marketing.
Organizing your customer sales force can serve the company to focus with more precision to clients.
By combination
When a company sells a variety of products to many types of customers in a wide geographical area, frequently combines several types of structures for their sales force. Sellers can specialize by territory and product and market, product and market or territory, product and market. The seller will depend on one or several general managers.Sales and distribution channel (similarities, differences, advantages and disadvantages)
The magnitude of the sales force is one of the most important decisions faced by executives in many industries. In practice, this decision is affected by other elements in the mix of marketing and influencing the overall marketing strategy. Specific choices (magnitude of sales force whether they are intended for the use of wholesalers, distributors, agents and others.) They depend on relative costs and tasks of sales required for analysis of the intermediate solutions.The objective pursued by the distribution is "putting the product available to the final consumer in the demanded amount, when you need it and in the place where you want to buy it, all in a way that encourages your purchase at the point of sale and at a reasonable cost"
Distribution (this set of activities, as evidenced by its objective) is required because it creates useful time, place and possession:
• Creates time utility, because it puts the product available to the consumer at the time you need it
• Create utility in place, through the existence of points of sale coming to the consumer (i.e., approaching the product the consumer)
• Creates possession utility, because it allows the physical delivery of the product
• Therefore, we can say that, on the basis of this utility, the target is define it previously. Characteristics of marketing as a marketing-mix variable are:
• A strategic variable, it is because they are making long-term, very difficult to change (like the variable product, and unlike the variable promotion and price that are operational, easier to change.
• It is an important variable, because it decisively affects the final product selling price.
• It is a variable to that manufacturer (a critical variable) difficult to control by the company products
A distribution channel is "the path that has to follow a product from its point of origin / production to consumption, i.e. (as well as), the set of individuals or organizations that perform the functions of distribution along the way"
It is called these people or organizations that are located between the producer and consumer intermediaries. And the set of individuals or organizations that act as intermediaries in a given geographical area is called trading system or commercial SECTOR
ITEM 06
GEOCOMERCIO
Companies that use geocomercio
Undoubtedly, businesses that operate in extensive geographical markets, are large users of this type of solutions, such as financial institutions, commercial enterprises, distribution chains and networks of agencies, etc.Benefits of the Geocomercio
Among its main benefits,• Optimization of investment in marketing actions.
• A greater knowledge of markets and the ability to focus efforts in certain segments of the market.
• Identify points of sales, offices, branches, dealers, competition, etc.
• Locate nearest offices, analysis of paths optimal and alternative.
• Determine the area of influence to determine the population to which it is covering.
• Answer questions such as: is the current location of my business optimum? Where could I find a new branch? Where direct an advertising campaign?
• Analysis of the potential of the market - households by income range
ITEM 07
MARKET MANAGEMENT
The decisions that a marketing manager must make are complex because of at least four reasons:
Factors influencing the market
When you are repositioning or launching a product or service, they will find a large number of factors, some non-controllable by you, that determine the success or failure of the marketing effort. Sales and profitability will be affected by the reactions of the competition, by changes in the national or international economic situation or in the perception of consumers.Marketing plans are impacted by external factors that are uncontrollable
Our plans can be affected seriously by changes in consumer preferences or by increased competition. Our sales and profit forecasts can be affected by adverse situations of the economies of the world, the region or the country.Marketing plans are unstable due to factors affecting the market
The factors that are beyond our control sometimes change quickly. Technological changes are an example of this and where they happen can seriously affect sales and profits.Marketing resource allocation is not linear
It is very common to see how the results do not correspond to the assigned resources. No wonder, for example, is expected to double investment in advertising and that the increase in sales is rather modest.On the other hand, a higher degree of complexity of the marketing decisions there is greater financial risks that may involve high investments of money involved. In addition, marketing decisions also have an impact on other units of the company as production, finance and human resources
Strategic marketing decisions
In most companies, marketing decisions are made within a hierarchical structure. To the extent that moves upward within that hierarchy, it moves from operational routine activities to long-term strategic planning. In a large company and producer of consumer goods is commonly found in the areas of marketing positions such as: President and Vice President of marketing, brand manager, brand manager, Brand Manager Assistant. The latter are in combat front facing daily pressure to carry out strategic tasks of marketing. His job is to oversee the implementation of the efforts of marketing such as advertising and prices. These are some of the controllable factors that marketers can manage and manipulate as opposed to uncontrollable factors (such as competition, the conditions of the economy) to achieve sales and profit objectives.When strategic marketing is usually done is set a horizon of up to five years. These long-term plans have immediate effects that are reflected in the short term tactical plans. These effects have to do with communication campaigns, distribution efforts, pricing policies and negotiation processes, internal and external. Therefore the Plan of marketing of a product or service represents the strategic or tactical direction developed and implemented by the brand manager and his assistants. This Marketing Plan is approved by the higher levels in the hierarchy of marketing and the most senior executives of the company.
The details of a Marketing Plan in general cover the following aspects:
An assessment of the current situation of product or service, including aspects such as their position in the industry, the macro trends related to our offer, the strengths and weaknesses of the company.A description of the challenges, opportunities and threats.
Specific goals based on the two previous points.
Alternative actions to deal with problems, to seize opportunities and avoid threats, in addition to an evaluation of these alternatives with their corresponding projections of sales and profits.
A decision on the alternative that will follow.
There are many formats of marketing plans, but the important thing is to recognize that a good strategic marketing plan should deepen the analysis of numerous products, companies, industries and the General factors of the environment.
The selection of marketing strategy
A marketing manager faces constantly in search of the congruence between the strategies of product or service with the objectives of the company, with its resources, the relevant factors of the macro and the activities of the competition. A good analysis of these factors depends on the availability and evaluation of information, which should include aspects such as the size of the market, the behaviour and the needs of the consumer.Should be a good information on the forces of the macro such as the socio-cultural, legal, political, economic changes; all this information is essential in order to determine the feasibility of the offers of the company for its market goal. In recent years companies have had to vary or adjust their strategies because of political and legal changes, socio-cultural changes, economic fluctuations. A marketing manager must continually monitor the competition to discover their current strategies or ongoing activities.
In practice, the decision on the selection of the strategy is based on the analysis of the costs (our competition, customers) and the benefits of the different alternatives and their probability of success. The Marketing Manager will determine at that stage of the life cycle is your product or service as it will be indicating changes in the strategy, the need to seek new markets, reposition, or develop new products or services.
The case method
Case method differs from other education systems because unlike traditional systems requires you to take an active part in the analysis of the problems and the determination of alternatives or courses of action. The case puts you in a situation in which you make as a marketing manager within the decision-making process. The cases described situations that face companies and the facts and opinions that depend on managers to make their decisions. The analysis of cases allows you to learn through experience. More cases resolved, the greater its ability to identify problems and formulate solutions. You will benefit from the analysis of cases in proportion to their effort.With the case method, the decisions you make and the process that you follow to make decisions is the key. It is expected that you develop decision-making skills, to support those decisions through an adequate analysis, who learn to communicate their criteria, to defend the facts and opinions in discussions, presentations or written reports. Your responsibility as an analyst includes participation, interaction, critical evaluation and effective communication. Case method requires individual participation in class based on a careful preparation of the case and not an exercise in speed reading.
The preparation of the case
Its aim to read for the first time a case, will be familiar with the general situation of the company and with the problems, opportunities, and threats to which it is confronted. Review also the organizational aspects and the structure of resources. At second reading will more in the background and will be devoted to understand that it is happening to the company and to detail its problems, opportunities, threats and possible strategic alternatives. You must frequently question the information that brings the case to him. Remember that only one is relevant. Choose the topic that is really the case. Does it refer to a threat of competition, technological change or the characteristics of the demand? Using data from the case calculations and comparisons that will enable it to better analyze the situation.You can make your own assumptions while these are reasonable with the situation faced by the company or the strategic options available to resolve the issues that is going through the company. Remember that marketing is rather exceptional to have accurate information for decision making. Although it has a wealth of information, you must make reasonable assumptions to deal with uncertainty. Assumptions must be explicit and not implied and it is better to make them that do them. If for example the case does not indicate how the process of shopping, you may not say in his analysis that the case had no information available or ignore the subject.
If you want to make a good analysis should include the subject of the procurement process and describe it taking an example from the real world. The most important analysis of a case is how you supported its decision. Remember that business strategists do not know if their decisions are correct to not allocate resources and the plan has been implemented for the most part. It is usually too late to reverse the decisions. This is telling you that it is essential for the study of their cases, that integrates intuition with a careful analysis as good as you would do in real life as Marketing Manager in his mind.
ITEM 08
MARKET ANALYSIS TOOLS
I analysis of the situation
• Measurement of the demand of the market• Nature of the demand
or segmentation
or consumer behavior
• Analysis of the strategy
or product
or distribution
or price
or communication
• Stage of the life cycle
• The macro trends
or socio-cultural
or demographic
or political and legal
or technological
or economic
or competitive
• International aspects
• Strengths and weaknesses
or marketing
or in production
or in the management
or financial
or in research and development
or in human resources
• Nature of competition
II - Challenges, opportunities and threats
1 problems2 opportunities
3 threats
III - objectives
IV - alternative
1. marketing alternatives2. evaluation of the alternatives
V Decision
1 recommendation2 implementation and Control
Remember that you will come to a good decision in the case study, if you do a thorough analysis of the situation, if well defined problems, opportunities and threats; and if your choices are determined and supported logically.
Additional information to the format for the analysis of cases
I analysis of the situation
The first step in the process of analysis of cases is to basically make a synopsis and evaluation of the current situation of the company. This will take you to identify the problems, opportunities and threats and will be also useful to propose alternatives to marketing and make specific decisions about the course of action that is going to recommend. The situation analysis interprets and displays the relevance of having or find important information and make diagnosis rather than wander in descriptions about the background of the case.Each case requires an analysis of situation which is different from any other case, since the information available and potential alternatives to be explored are unique.
Measurement of the demand of the market
Keep in mind that the task of measuring the demand of the market involves defining the current size of the market and to estimate future sales potential. This is an exercise quantitativo that we will indicate the consumer demand for a category of products or services.To understand the size of the demand of the market you need to estimate the current size of the market (in units and values) and which is projected for the future, the shares of market competition and trends of these shares in units and values. It also estimated the position of competition in the market both in sales and market share, including projections on the growth of the market segment, usually for five years and for the segments where the company competes. In addition to that you determine the primary level for the category of products and services where they compete, it will also look selective demand relating to specific products and services. Also make assumptions about specific brand related to your own trend.
Remember that depending on your circumstances and the characteristics of the market in which you are or plan to be in the future, the market potential you can calculate it using surveys, the data of your company, information about the industry to which the company belongs or by the Census of each client.
Nature of demand
In this section, whether consumer or industrial, market identify buyers and will establish their purchasing decision process. Here is it taken into account as those purchases are influenced by factors external to the consumer, including the decisions taken at the family or business level. The key in this analysis is to assess the implications of alternative strategies and marketing programs that are going to set.Segmentation
Identifying appropriate market goal is part of the key to strategic marketing. See if the market is growing; If the segment chosen by the company is large enough as to support another product or service. See if the market can be segmented properly in several homogenous groups, identify better the wishes of consumers and their purchase process. See also the demographic aspects of the segment, the psychological characteristics and the influences that can receive the decision-making process of purchase of part of the family, friends, society, the unions and the Government.Check if competitors have segmented or not the market, which were the basis of this segmentation, including the identification of those segments with the greatest potential. Investigate which group of clients attend the competitors or if there are segments that are currently underserved and who can attend. Think if there is a marketing program that may be more effective to develop each segment and compare it against have a standard program to cover all segments. Could it be that if we produce a specific marketing strategy for a specific segment you can give us a differential advantage?
Consumer behavior
Determine what, the how, the where, the why and who, in the purchase decision. Are they emotional or rational buyers? What are the most important sources of information that buyers use to make buying decisions and what are their criteria to evaluate the product or service?.Analysis of the strategy
An important aspect of the situation analysis is to understand what is the strategy of marketing of the company and of its main competitors. Begin outlining the objectives of different marketing strategies of competition. For each company that analyzes, you should be able to give answers to the following questions:What are the goals of the company?
These objectives have been or are being achieved?
Product strategy
Is the product mix tailored to the needs that has the enterprise solve the needs of your market goal?What brand strategy is being used?
Are duly positioned opposite brands products competing?
Does the company have a right approach to the planning and management of products?
The Marketing Department participates in decisions about the production of the product?
Will it be necessary to review the mix of products to make additions, modifications or deletions that make the company more competitive in the market?
Do periodically evaluates the performance of each product?
Distribution strategy
Have you selected the company the type and intensity of the distribution for each market that wants to serve?Does each channel a good market access goal?
Are a good mix of channels using the company?
Will the unit in charge of the Organization of the channels properly complying with the assigned functions?
How are administered distribution channels?
Is there a need to make improvements to the distribution channels?
Being met are with service levels the customer?
Are the costs reasonable for this level of service?
Price strategy
So susceptible is every market target price variations?What is the relative weight of the price within the marketing mix?
Does the price play an active or passive role in the strategy of positioning the product or service?
How we compare our strategies and tactics in price with those of the competition?
How do we set the prices?
There are signs in the market that we must vary our strategies and tactics of prices?
Communication strategy
What is the role and objectives of advertising and promotion of sales within the marketing mix?Is the advertising strategy consistent with the strategy of positioning?
Are there sufficient resources to carry out the objectives of advertising and sales promotion?
Are promotional plans that we are using the most effective means to communicate with markets goal?
It communicates effectively the plan means what we want to communicate?
What as well they are fulfilling promotional plans with your goals?
Stage of the life cycle
Here you must make assumptions that indicate at what stage of the life cycle is the product or service. This reasoning is important because according to the stage of the life cycle, we will determine the specific options of marketing may be applied.In which stage of the life cycle is the category of product or service?
Do characteristics of the market support his point of view about the life cycle?
Describe the category where the company is competing and not limited exclusively to the product or service that the company is selling. The life cycle of the product is the description of all the category of goods or services in the industry and should not be limited to the individual offer for the company in that category.
The macro trends
The macro has six components that interact in a complex way and which are critical from the point of view of marketing: the socio-cultural, the demographic, political and legal, the technological, economic, and the competitive. For example, Government decisions in terms of taxes have an impact on economic growth and income distribution; technological changes influence the nature of the competition between the companies.The macro trends are of particular importance in the process of formulation of marketing strategy, because any marketing plan we do necessarily will have to run in a future scenario of the macro. From this point of view, a marketing strategy is a business plan based on a scenario that we making predictions of how will be the future.
Socio-cultural trends
Here we are referring to cultural aspects, attitudinal and behavioral of the macro. The changes in this environment are more evolutionary than revolutionary, more generational than individual within a specific generation. The marketing we want changes in social values, in the structure of the family, in employment, which make people in their free time, in the expectations of the people about their future.Demographic trends
According to forecasts of the World Bank by the year 2030 the world will have 8,500 million people, or nearly three billion more than that at present there are. What is worrying is not so much the number, but that most will be born in poor countries. This will produce large migrations of people not trained to developed countries.In contrast, in developed countries there will be a gradual ageing of the population and a decrease of the same. In these countries, you are creating a new kind of population formed by economically inactive seniors, but with more income than those who are between thirty-five and forty-four years. It provides also a strong reduction of the middle class, but his mobility is not upward but down. For the mercadeologos all of these changes in the structure of social classes and distribution, will be matters of concern and constant analysis to be able to engage in these new scenarios.
Policies and legal trends
The company is key to get to know the legal and political environment where it will act. Political and legal decisions taken by the Government and the legislature will have an impact on the operations of the company and in the behaviour of consumers. These decisions can give rise to opportunities or threats for the enterprise. It is usual, for example, that the mercadeologo is monitoring often the development of Government plans, bills in the Congress. that in the pre-electoral period, evaluate candidates for the Presidency of the country, the Government program that propose, your options be chosen, parliamentary support will have and the strength of the opposition.Technological trends
Currently the technology is our culture. Technology is something which configurando is continually markets. The time between ideas, invention and commercialization has decreased. Technology is the driving force that is behind the development of new products and markets, but also is today the leading cause for further products and markets decline or disappear. The technology is a new frontier that allows us to put more complex information and more intelligence in our products. With this we are creating value, making friendlier product in use, having the possibility to make us a more flexible production to make a range of products tailored and customized.Economic trends
Meet the macroeconomic scenario of the country or countries where our company operates and learn about global trends in the economy are key pieces for the creation of future scenarios for marketing.What is happening in the financial markets of Asia, the EU or United States?
How we affect the situation of these markets?
How is the fiscal situation in the country?
What is the size of your debt?
Is the currency of the country overvalued?
What are the trends in economic growth of the country and the region?
What is the situation of the balance of payments?
What is the model of development?
What is the current situation and the tendency of commodity prices?
What are the interest rates and how they compare with inflation rates?
Is there confidence in the country on the part of foreign investment?
What size is this investment and to which sectors is addressed?
Be predicted a devaluation?
What is the unemployment rate?
How are we competitive?
These questions and many others must respond to trace our plans, which will always develop in the future.
Competitive trends
Professor Michael Porter recommends us to rethink competition and Gary Hamel tells us that we have to reinvent the basis for competition. Express Porter:"As we move into the 21st century it is essential to develop clear strategies; because unless we have a clear idea of how strategies must be different and unique, and that offer something different from what they offer rivals to a different group of customers, the strong competition will eat us alive"and Hammel adds:
"Just get to where others have become necessary to follow in the game, but the winners will gain the ability to invent a fundamentally new games."
Fortune magazine predicts that many of the companies that today appear in the Fortune 500 list, 2010 will no longer be on your list because they will have been absorbed, have merged or have dropped out of the market. This is indicating that periodically you should perform an analysis of their systems to do business, that must isolate them mentally, then mentally break them to quickly return them to assemble from scratch, thinking about future scenarios where you have to compete and be a winner. In many cases the rethinking of business can lead to do something different that can result in better results.
International aspects
In this part of your analysis, you will identify the most relevant international aspects to the activities of marketing and business of the company in the case. For example, to identify the products and services of their key competitors that have significant presence in the most important markets (example: United States, the European Union and Asia).Identify the potential competitors in the international markets, it will consider the strategic importance for your business in a country or region in particular.
What is the size of the market there?
What are the obstacles to enter?
What price levels, tax rates, macroeconomic conditions, the political risk, the cost of adaptation?
Are what trade agreements in the region?
What are the non-tariff barriers, such as the actions of rescue, exclusion orders, quality standards?
What are the rules for foreign investment?
Are there any patent protection?
How are communications and transportation?
What are the demographic trends?
A very important issue when we do international marketing, is to define if we have an offer tailored or standardized and where. Many forces are today pushing companies to go global, not only expanding its participation in foreign markets, but also integrating its global strategy. Recent changes and those that lie ahead tend to make a global strategy the requirement to survive. This is based on the growing similarity of countries in terms of the preferences of consumers, to the collapse of barriers to international trade. On the other hand local markets may be at stages of maturity in its life cycle that forces to look for new business opportunities in international expansion.
The multinational approach where companies established national branches that designing, producing and distributing products adapted within a so-called multi-local strategy, quickly cede you step to a global strategy driven by the revolution of communications and information technology.
Strengths and weaknesses
In this part of the process of the analysis of the case, you will develop the first part of the SWOT analysis, an acronym for the words fortaliezas, opportunities, weaknesses and threats (in English SWOT).This type of analysis represents an effort to examine the interaction between the particular characteristics of the case company and the market in which it competes. The SWOT analysis should focus only toward those key factors to maintain a sustainable differential advantage. This analysis should clearly show the strengths and differential internal company and strengths weaknesses and internal weaknesses of major competitors. Opportunities and threats are external. Strengths and weaknesses will emerge during the analysis of the situation. During his analysis look carefully each of the following areas, without this list being exhaustive:
Marketing
Skills in all aspects of the marketing mixAbility in market research and consumer behavior
Skill in the development and launch of new products
Training and ability of the sales force
Geographical coverage
Participation in the market
Breadth and depth of product line
Congruence between the needs of the target market and the marketing program
Congruence between the marketing program and the strengths and weaknesses of the company
Congruence between the marketing program of the company with the competitors marketing program
The leverage between the elements of the marketing mix
The image of the company
The situation of the products, from the point of view of the client, in each of the market segments.
Coverage and quality of distribution channels
Strength of relationships with channels of distribution
Ability to give support to distribution channels
Stage of the life cycle of the product, category, brand, model
Production
Technical capacity in manufacturingFacilities (example: technological, obsolescence)
Training and efficiency of the workforce
Installed capacity
Economies of scale
Costs and indirect costs distribution system
Ability to produce just in time
Degree of vertical integration
Access and cost of raw materials
Location of plants
Flexibility of installations, machinery and equipment
Manufacturing quality
Management
Leadership, vision, ability to coordinate functions or groups of functionsAbility to motivate the human resources
Entrepreneurial spirit
Flexibility and speed of response
Level of education
Experience, age, training
Relations with the political, social, economic, governmental spheres
Ability to create economic value added
Financial
LiquidityShort and long term borrowing capacity
Ability of financial management to negotiate, obtaining financial resources, credit, manage inventories and accounts receivable
Research and development
Capacity internal research and development processes (example: product research, research processes, basic research, imitations)Patent
Ability of researchers in the field of creativity, quality, reliability, expertise
Access to external sources of research and engineering
Human resources
Education, training, efficiencyStaff turnover
Trade Union relations
Levels of remuneration, incentives and benefits
Working environment
Nature of competition
Here you have the difficult task of assessing the current and future nature of the competition. The analysis of competition means understand thinking strategically important companies in its industry. It means to draw a map with a hidden mosaic of ideas, alternatives, of plans of investment and goals that will be the heads of beach that his opponent will establish. Competition analysis seeks to understand the long-term vision that the opponent has in so far as it acts in the present. But the fatal trap in the analysis of the competition is to engage only in the present analysis. An analysis is shortsighted and usually leads to follow and imitate step-by-step movements of the adversary.The following questions will serve as starting point for analyzing the competition:
So understandable what the game running by its competitor?
Is product-oriented?
It is process-oriented and is launching a family of products and services?
How do see the future his opponent?
What scenarios it seems you are considering?
How is his opponent positioning to take advantage of future opportunities by repositioning or brand extensions?
Where is your competitor taking ideas to guide their future?
What rich are those sources?
How can you use their understanding of the mentality of its competitor to refine and expand the vision of your own company?
Need where you reinforce the vulnerable parts of your business?
In that part of the business of its competitor must you attack to block its strategy?
To what point must watch its competitor as an adversary?
Is there another way to interact with that other company, incorporating their guidelines in the future from their own?
Alternatively, will it be profitable for your company to join the vision of that other company?
Look at the world through the eyes of his opponent, will usually give you a broader view that otherwise you would have not considered. Today no company by powerful to be can be successful as a solitary entity. Today companies must lead and give form to volunteer organizations, suppliers, customers and all those who mutually benefit from the Association.
II - Challenges, opportunities and threats
If you have made a good analysis of the situation, you're ready to make a definitive analysis of the critical issues, opportunities, and threats facing the company in the caseProblems
Please read the art of thinking strategically. There you will find how to do the dissection of problems. You'll note that the magistral formula to deal with them is not to prescribe remedies for the symptoms, but identifying and examining in depth the critical issues of the problem through a clear understanding of each of the elements of the situation. If from the outset he made successful solution-oriented questions and carried out the appropriate analysis, it is easier to provide concrete and practical solutions.ITEM 09
MARKET RESEARCH
Reflects market research: changes in the behaviour of consumers, changes in the perception of consumers purchasing habits. The goal of all research is to obtain important facts about our market and competition, which will serve as a guide to decision-making.
The process of investigation should not be limited only to the moment in which starts a new business. On the contrary, it must become an ongoing activity.
Market research involves the use of several instruments to analyze consumer trends. Some of these tools include: surveys, statistical studies, observation, interview and focus groups.
Research to provide information on the profile of our customers, including their demographic and psychological data. These details are features specific to our focus group, needed to develop a good plan of marketing aimed at our primary audience.
Who want to make a good market survey to enter or remain in the network must support is - surprise - in the knowledge and traditional market research techniques. So did leading research firms that analyze the development of Internet and e-commerce in our country.
"Lifetime research methodologies are used in the majority of cases (phone interviews, focus groups...)." What really varies is the approach of the company", explains Alejandro Garbiras, director of the firm Eyeglue. NET, in charge of the last study on electronic commerce in Spain of the AECE.
METHODS OF MARKET RESEARCH
I. the survey:
This method is designed a questionnaire with questions that examine a sample in order to infer conclusions about the population. A sample is a considerable group of people comprising certain features of our focus group. It is recommended that the survey questions are closed [questions with alternatives to choose]. This is the method most widely used to perform market research.Another important factor is the sequence in which questions are presented. The initial questions should be sersencillas and interesting. Questions touching from the general to the specific. The questionnaire should be easy to read.
For example,
What is the factor that most influences when you buy a new car?
___garantia ___precio _ service _ previous experience
II. the interview
Once is designed a questionnaire comes to interview people considered opinion leaders. Generally, participants expressed valuable information for our product or service.For example,
ideas for promotion sales strategies / marketing
III. observation
Another option we have to obtain information is through observation. With simply observe the behavior of our primary audience we can infer conclusions. An example would be to observe how people behave at the moment of choosing a product at the grocery store.IV. A focus group
Focus groups are similar to the method of interview, with the difference that the interview is performed to a group instead of an individual. For the focal group selects between 10 to 12 people with characteristics or common experiences.EYE... It is necessary to have a moderator to lead the interview
BENEFITS OF MARKET RESEARCH
The research is important when it starts a business, and should be integral and permanent part of the activities of any company. The components involved in marketing are constantly changing: customers, products, competitors and pricing are in constant variation, do not remain static. The research is facilitated when a system is established, and rationally using resources available, free of charge, within the reach of any company.The information obtained through scientific research market tends to be reliable and should be used as a guide for the development of business strategies. Market research is a guide for communicating with current and potential customers. If you make a good research, results will help you design an effective marketing campaign, granting potential consumers the information that they are interested in.
The research helps identify market opportunities
For example, if you plan to start a business in certain geographical location and discover that in this place there is little competition, then you identify an opportunity. Chances for success increase if the region that it intends to do business is highly populated and residents have the characteristics of your selected group.Market research minimizes risks
If instead of identifying market opportunities, the results of the research indicate that should not continue with the plan of action, then it is time for adjustments. For example, if the findings reflect that the market is saturated with the type of service or product that you plan to offer, then you know that it may be better moved to another location.Market research identifies future problems
Through the research you may find, for example, that in the place where you want to establish your business, the municipality plans build a step a way or a path alternating with the purpose of relieving traffic congestion. You have identified a potential problem!Market research helps you to evaluate the results of their efforts
With research, you can determine if it has achieved the goals and objectives proposed at the beginning of the business.TYPES OF INFORMATION TO BE HANDLED IN MARKET RESEARCH
There are two types of information:SECONDARY: The information available free of charge. PRIMARY: Field, this is the collection of specific information.
Secondary information.
There are countless number of sources of available information published by public and private agencies, which is available in libraries and more recently on the Internet network. This information, secondary call, allows analysis both of the volume of the total market and their segments, as to determine any trends in these markets. The Chambers of Commerce and industry develop and permanently published information on these issues, which can be purchased at low cost. Statistics published by central banks, and industry ministries are valuable to determine trends in the economy and in the productive sectors. The thesis prepared by students for their academic titles, which are in the public domain, and are available in the libraries of other universities that have business schools can be included in this secondary type information.Primary information
Field research, or primary, is to ask the interviewee about a given topic. The questions are a small sample of what could constitute the total market.The current ways of doing these interviews are:
• Personal interviews.
• Surveys by phone.
• Surveys by mail.
To develop personal interviews requires interviewers making visits to a particular sector of people. They can result from high cost; Although it is naturally the most efficient method, when it develops properly. Interviews by phone have become popular because they cover a greater number of people in less time, and because of its low cost. Surveys by mail, in Latin America, have the disadvantage of the low response, which is less than three per thousand. This happens even when sent reply paid envelopes and offering incentives and prize for the responses.
SCOPE AND LIMITATIONS OF MARKET RESEARCH
Scopes:
• Contributes, adds information.• Add (or edit) to the knowledge of entrepreneurs and managers.
• Does a target contribution, from a position that is not involved with the different members of the Board.
• Reduces uncertainty in decision-making situations.
Limitations:
• Is the only source of information.• Do not is magical; It describes, estimated or predicted within confidence limits.
• Measuring a moment of time. It is a photo, not a movie (except that face as such).
• Results may be limited if those needing information describe the problem partially.
• The budget reduction may affect the achievement of the necessary information.
ITEM 10
IT IS THE SALES FORCE
Description of the sales force
Of Sales Force Automation Systems (SFA) sales force automation systems, usually a part of the management of the company's clients (CRM) system, is a system that automatically archives all the stages in a sales process. The SFA include a system of contact management, which tracks all contact that is carried out with a particular customer, the purpose of the contact, and any monitoring required. This ensures that no duplicate sales efforts, eliminating the risk of alienating customers. The SFA also include a primary tracking system sales, which lists potential customers through lists of phone payments, or customers of related products. Other elements of a system of sales force may include forecasts of sales, order management and product knowledge. The more developed SFA have characteristics in which customers can reach modeling product to suit their needs through systems of building products online. This is becoming popular in the automotive industry, in which employers can customize various features such as color and the interior of the vehicle.A fundamental part of any SFA system is company wide integration among its different departments. If they are not adopted and properly integrate sales force systems, due to lack of communication, it could move several departments to contact with the client and for the same reason. To mitigate this risk, the SFA must be integrated fully into all departments which are in charge of managing the customer service.