One of my main takeaways from this topic is that money isn’t the best motivator. According to Mayo’s Hawthorne effect, employees feel more motivated when their efforts are recognized, and this can be achieved through bonuses for example. However, this can increase individualism as employees will focus on outperforming their peers. Intrinsic motivation helps create loyal employees who are more satisfied on a personal level. An example of this could be social security benefits.
At first glance, it appears that this “name your own price” method would reduce the band’s profits. However, this strategy disrupts the market leaders’ (record labels’) business model by (a) targeting the least-demanding tiers of the market that are currently overserved and (b) using a disruptive business model that enables Radiohead to compete profitably while pricing at deep discounts. From the case, the current model releases artists’ albums both in stores and online. Online, customers have the option of purchasing singles in lieu of the entire CD. The fact that 95% of iTunes sales are singles suggests that albums are overserving customers that only desire certain songs; they aren’t willing to pay $14.99 for a full album, but will pay $0.99 per song.
When a consumer is purchasing a product they want to make sure they obtain maximum value for the money they spend and obtain a product that they perceive is greater than any other product in the market. Consumers look for something that sets a product apart from the rest wether that is providing a product at a lower price or by providing a higher quality product, ultimately a consumer will purchase the product with the greater perceived competitive advantage. Bunning’s warehouse is a company that gains its competitive advantage over the competition by offering the consumers products at lower prices than their competitors. Bunnings makes the promise of low prices through their slogan “Lowest prices are just the beginning.” The company does not just make an empty promise on providing the lowest prices but is able to back it up by saying “If you happen to find a cheaper price on a stocked item we will beat it by 10%.” (Bunnings Warehouse, Year Unknown) By creating and delivering the promise of lowest prices, Bunnings is able to position itself in the customers mind as providing superior value and as such has been able to gain majority share hold of the market through differentiating themselves from the competing companies through a competitive advantage. (Armstrong, Adam, Denize and Kotler, 2012) It is made clear through the example of
However, once the company demonstrated its inability to deliver, the launch date for the website was constantly put back. The failure to deliver on time linked with the stock market crash meant the end of Boo.com. The success of other businesses such as lastminute.com was reached because they grew steadily and adopted strategies to grow with precise objectives unlike boo.com who wanted to become a global business from day one. 2- Use the framework of the marketing mix to apprise the marketing tactics of Boo.com in the areas of product, pricing, place, promotion, process, people and physical evidence 2- Product: Premium brands were used, leading to premium prices. There was a mix between sportswear and high street fashion.
The EVA trend seems to be almost mandatory for the larger companies, but there is no reason that it shouldn’t work just as well for their smaller firm. The implementation of this decision tool would benefit the company in three distinct ways. First of all, EVA data would provide stockholders and potential investors with comparable data to their competitors. If the investors are looking for EVA valuations to help make their assessment of companies, then it would be dutiful for OSI to provide this data. Stock prices are determined by
Marketing Britvic Case Study – Assessment 1 1. Characteristics of the marketing concept. The Selling Concept – This concept doesn’t primarily focus on new consumer wants or desires but focuses on the selling and promotion of a particular already existing product in order to achieve the highest sales they possibly can. This technique is suited to companies who sell products which are in high demand and whose customers/consumers tastes are unlikely to change and lessen demand. The Production Concept – Companies focusing on this concept will primarily focus on achieving high production efficiency at low costs and mass distribution as they believe the consumers are primarily interested in widely available products at low prices.
C. Developing an advantage based on offering more value for the money. * Target is a good example of this strategy. Giving customers more value for their money by satisfying their expectations, while also beating their price expectations is known as a best-cost provider strategy. It is a combination of the two previous strategies above.
Any kind of change in the output of one product will most likely require changes in other markets, as well, and will start a chain of adjustments. Lower costs can benefit not only its own customers of an enterprise, but those of other competing enterprises as well. Someone or something must decide what is to be produced, how, by whom, and what is to be consumed by whom. This pursuit of profit will encourage firms to produce more efficiently and keep their costs low, encourage firms to produce goods and services that consumers value highly relative to costs, and also discover and develop better products and lower-cost production methods. In turn, the economy can operate more efficiently.
Customer loyalty is relied upon for long term success and to continue to retain customers they used audience analytics to ensure they are targeting the right market, to acquire new customers, retain existing customers and cross sell. Without customer loyalty, their revenues would drastically decrease and they would evenly run out of money. Question 2: Explain the importance of data quality to the success of the RSC’s marketing campaigns As RSC is relying on audience analytics to retain existing customers, acquire new customers and cross sell to new markets. This is basically the only way that they are receiving their revenue from. What would have happened if the data quality was very bad, which in turn affected their marketing campaigns and they lose most if not all of their customers, they would have been unable to repay debts and eventually gone bankrupt.
As a result, share prices are not valued high, which drive away investors as they are not willing to invest for low yields. When shareholder’s values are not high, a company may gain a bad reputation. By gaining a bad reputation, the company loses the chance of retaining good amount of equity, therefore, having to waste more of the money earned from sales. In order to increase shareholder value, companies must either increasing revenue and reducing expenses or lower their cost of capital. In my opinion, when lowering cost of capital in the case of equity, the business is able to issue more dividends which in turn contribute to the increase in the value of shareholders.