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Importance/benefits of trademarks
Trademarks are considered an important intellectual property that organizations should safeguard, mostly because they represent business identity. In this discussion, the importance of trademarks for businesses is discussed.
Trademarks protect the business’ identity through preventing competitors from using the name or symbol associated with the business. This provides gives the business legal right against the trademark, such that it can take legal action based on the trademark. Bouchoux (2012) notes that the probability of having businesses duplicate or imitate other business’ names or products is quite high. This is based on the fact that the number of players in the market has increased, and companies are willing to take any strategy to attract customers.
A trademark protects a company or product’s reputation and goodwill; ensuring that the company is easily identified through it. An example is BMW trademark. Whenever a BMW sign is sighted, the observer immediately associates the sign with high performing vehicles, such that it is easy to conclude that BMW has gained reputation among customers.
Trademarks help in protecting the business legacy through ensuring that the owners can keep a business name. This is because changing a trademark means that the company would have to restart the process afresh, building networks and creating a new brand. The company is therefore better off with its current trademark. This therefore means that the trademark plays the role of preserving the business brand.
Trademarks are considered a communication tool and are significantly important in marketing, to promote presentation of a company’s products and services. The CocaCola trademark is a good example of how trademark can be effectively used in marketing. The company has managed to create its presence in the market through popularization of its trademark during advertising and marketing.
Trademarks play an imperative role in promoting customer’s product recognition ability. This insinuates, a customer will easily recognize the company’s by scanning through a variety of products. Customers are more likely to associate with products that have served their needs well in the past and through a trademark, they can easily recognize the product from among competitor products (Bouchoux, 2012). Trademarks therefore influence customer loyalty and consequently promote future sales and growth capabilities.
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Trademarks are particularly important in the contemporary technology era. The importance of trademarks for example has become increasingly significant with the advent of social media, which is also considered an important marketing tool. The use of a trademark ensures that a business products can be easily sought on the internet. As the number of searches continues to rise, the trademark is placed higher in the search engine, increasing its marketing potential.
In Qatar, for example, trademarks cost around 3,000 Qatari Riyals with 10-year validity and extendable for another 10 years. Similarly, in the US, it costs around $275 and can be renewed every 10 years for unlimited number of times.
Bouchoux (2012) argues that trademarks remain the most valuable assets for companies; hence the need to protect them in the best manner possible. A company must be on the lookout for any violation of their intellectual property to ensure that it does not impact on their reputation. This happens in cases where companies present counterfeit products under the trademark or where the companies adopt a company’s identity or a similar one.
In conclusion, trademarks define a company’s identity and the need to have and protect them is of great importance. They promote product recognition, protect the business brand and enhance product reputation and goodwill.
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Knowledge Management
Introduction
Knowledge refers to awareness or a theoretical or practical understanding of someone or something that originates from a combination of data, information, experience, discovery, learning and individual interpretation (Edvardsson, and Durst, 2013). Knowledge can also be defined as the ability of an individual to respond to a body of facts and principles that have been accumulated over a period within his or her environment (Groff and Jones, 2012).
In an organizational viewpoint, knowledge is seen as the total of what is known by the people/employees within an organization. It is the intelligence and ability of the people within the organization. This intelligence and ability are what helps an organization to be more successful regarding achieving the organizational set goals and objectives. Failure to use the peoples’ intelligence and ability in an organization well may be fatal to an organization as far as organizational goals and objectives achievement is a concern.
Knowledge is what makes the difference within organizations. Most of the well-performing organization has useful and relevant knowledge they use to outdo their competitors. As such, this knowledge must be managed to ensure continued performance of an organization as a whole.
Knowledge has lately been recognized as a key factor in an organization. Additionally, knowledge is crucial in production and operation of an organization. It is, therefore, important to manage knowledge within an organizationn. There are different types of knowledge including explicit knowledge, tacit knowledge, embedded knowledge, procedural knowledge, detailed knowledge and so on (Groff and Jones, 2012).
This paper evaluates knowledge management in small businesses. Moreover, the paper will set out by defining what knowledge management is, its significance and purpose with respect to tacit and explicit management. The paper will also examine assumptions made by KMS, and also SMEs definitions.
What is a KMS and what does it do?
Knowledge management is a systematic process of capturing, processing, assessment, sharing, storing, distributing and using of knowledge (Croteau, 2016). It involves the best use of knowledge for achieving organizations set goals and objectives. Knowledge management consists of the initiatives, processes, strategies, and systems that ensure and heighten the creation, improvement, sharing, storage and application of the knowledge (Croteau, 2016).
Knowledge management is based on two main activities. The first activity is about capturing and documenting of all employees knowledge within the organization. With this capturing and recording of such knowledge, the organization can know what kind of assets it has regarding human manpower is a concern. That fact that people drive organizations, it makes it more logical to know what the organization has. It is people within the organization that sets the organization’s goals and objectives. As such, these employees are likely to work hard to achieve their organizational set goals and objectives.
The second activity is about the distribution of the valuable knowledge to all staff around the organization. Dissemination of such knowledge can be done through various means including; on the job training, direct supervising by respective line managers or heads of departments, through one on one talks with employees of an organization, hiring a trainer to come and train the employees and so on. As such, Knowledge management will not only allow the organization to have all the relevant information needed by the organization but also to use such information to organizational benefit.
Knowledge management encourages or focuses more on organizational learning with an aim of achieving the organization’s objectives such as continuous improvement in employee’s performance, acquiring more market share, being more innovative, improved profits, teamwork and togetherness through sharing of information learned or trained and so forth.
Valuable knowledge is very crucial for the success of any organization. As such, the organization that can create and diffuse knowledge to its employees is likely to gain a competitive age against its competitors. Having knowledge employees is great for an organization though it’s difficult to keep such employees within the organization. They may be lost through turnover, competition or even through retirement (Dalkir, 2011).
Knowledge management is closely linked to organizational success. It highlights the importance of managing useful knowledge to an organization. This useful knowledge is the one that will help in the achievement of organizational set goals and objectives.
Knowledge management is also defined as a systematic coordination of organizational resources in a way that can add value to an organization through use, reuse and innovation. These organizational resources include; people within the organization, processes within an organization, technology, organization structure and so on. This coordination is realized through creation, processing, distributing and application of the knowledge.
Knowledge management is the use of organizational brain power in a systematic manner to ensure that an organization gains a competitive age against its competitors, to achieve efficiencies in operations of an organization and to spur innovation within the organization (Groff and Jones, 2012).
Continuous organizational learning is crucial to an organization. People especially of an organization need to keep learning the environment an organization operates in keep changing every time and then. As such, employees ought to keep learning so as to gain more and more knowledge that will help in the achievement of organizational goals and objectives.
Knowledge management helps to keep an organization running at a high and efficient level. As such, organizational goals and objectives are likely to be achieved.
Knowledge management was recognized in the 1980s as a competitive asset to an organization. It was fueled by the development of Information and technology systems which made it simple for creation, storage, display and dissemination of information (Edvardsson, and Durst, 2013). Currently, most organizations have or are trying to adopt to knowledge management systems mostly due to its efficiency.
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What is Knowledge and what is the purpose of managing tacit and explicit knowledge?
Knowledge
Knowledge is different from information as well as data. Individuals absorb information and data in the development of knowledge. With knowledge can easily convert data information Knowledge is the total of what is recognised, resides in intelligence and competency of in individuals. In the recent past, knowledge is considered as production factor; however it is related to labor. This is a clear indication of the connection between knowledge-information-data.
For instance, policy an analyst is requested to establish if changes in policy about marketing of ABC products, in the clothing sector. The analysts begin by assessing the numbers on the ABC sales for the previous three years. The analysts use these numbers and develop a pattern for ABC products demonstrating that they have significantly increased for 3 years, especially after policy changes.
Such data is converted to information. To get practical descriptions that maximises sales, the analysts looks for further information, speaks with famous clothe retailers and distributers. Upon completion, the analyst and based of the analyst’s understanding, she states that attempts to market local fashion items expanded after policy implementation and positively increased the sales volume. In this case, the analysts used current and new knowledge. User her skills to recognise a certain element. Transforming data to information, while using current knowledge she reached a conclusion. In fact, she produced new knowledge (Hislop, 2013).
Knowledge is imperative because it encourages innovation – knowledge management system fosters innovation within an organization. Through sharing of information, employees of an organization can pick relevant information that may help them to develop some new within the organization. Knowledge management encourages the creation of knowledge. As such, new ways of doing things in an organization may be discovered. Knowledge is crucial to decision making since managers can access all relevant information they want for decision making within the organization.
In addition, knowledge, customers’ responses are timely received and may be acted upon quickly. Any organization that can respond to customers’ needs will be loved by its customer, hence more revenues to an organization. Knowledge helps in staff retention within an organization. This `is done by recognizing of employees’ within an organization. Recognition may be in the form of rewards such as increased salaries or wages.
Again, knowledge improves organization’s revenues. The knowledge management system ensures improved revenues when products and services get to the market faster. Knowledge management system provides the necessary information of what is required at any particular point in time. As such, an organization can easily and quickly respond to customers’ needs well.
With the adoption of knowledge system, an organization is likely to grow as far as technology is a concern since they can create, process, store, share and access all the relevant information that is beneficial at easy and quick. Consequently, knowledge is driving businesses to extend to other parts of the world. This international expansion is good for any business though it has to be undertaken carefully so as to reap all the benefits of globalization and avoid all the challenges that come with globalization such as management issues or difficulties.
Purpose of Managing Tacit and Explicit Knowledge
Tacit and Explicit Knowledge
People hold divergent forms of tacit and explicit information and employ their information in various ways. Moreover, people use divergent viewpoints to contemplate about anomalies and formulate solutions. Again, research shows that knowledge is disseminated in creative ways.
Tacit knowledge
This is knowledge that comes from common sense, it is automatic, and does not involve thought process. Tacit knowledge is critical when it comes to assisting firms not just in decision making processes but also impacting the corporate culture. In short tacit knowledge is individual, slanted form of information is informal. This type of knowledge is never found in books or written materials.
Mental tacit information integrates implicit mental representation and perspectives that are so entrenched and often never taken seriously. Perceptive models impact how people conceptualize world events. People can investigate story content and actions and employ useful tacit information in executing work-related functions.
For example, workers of Datafusion Inc, an ICT consulting organisation, capture and shares meeting footages with employees. This is to say that employees will
Explicit knowledge
Explicit knowledge is largely methodological or academic. Moreover, explicit knowledge is documented in formal prose such as manuals, computational formulas and shared through print media and electronic media among others. Explicit information is technical and involves a level of scholarly information or understanding that is attained through formal education, or structured education.
Explicit information is cautiously codified, stored in a hierarchy of repositories and is accessed with high quality, dependable fast data reclamation structures. Once classified, explicit knowledge assets can be used time and again to solve many comparable forms of issues or unite people with valuable reusable information.
For instance, Ernst & Young have developed an international brain of explicit data to comprise cultural disparities. Their database of best practices with a global reach is anchored on sharing and documenting information. The company’s approach to business issues stems from an array of perceptions.
Regardless of where problems occur, there is no right answer, but several practical methodologies. Ernst & Young see knowledge objects as templates of core insights that can be employed in any cultural setting.
Andersen Consulting for instance, developed ostentatious ways to classify, store and reuse explicit data. With this approach, any client sensitive data is removed while selected information is reprocessed. In short, data is transformed into a verified successful solution that can be employed in a similar industry.
Importance of knowledge management system
What are the assumptions made about KMS (Objective / practice-based)?
There are various assumptions of Knowledge management system. For example, KMS is associated with free circulation of information; it is assumed that information within an organization flows freely from one employee to another the information maybe about products an organization deals with, strategies, and structure. In reality, free flow of information within some organization is not possible. Some organizations have levels in which certain information can flow up to. Organizational information is mostly kept secretly and only shared with some few senior employees of an organization source
When it comes to knowledge sharing between employees – it is assumed that all employees of an organization trust each other and as such, they freely share whatever kind of information they have. In reality, particularly, where employees try to outdo each other in term of their performance and rewards. Source
There is the aspect of efficient research and retrieval system, which is assumed that all staff or employees of an organization can easily and efficiently search and retrieve all relevant information they need to help them perform their respective duties well. The reality may be different depending on an organization. Some organizations do not have efficient systems that can allow employees to search and retrieve information without difficulties.
Easy combination of different sources of information under KMS it is assumed that all employees of an organization can combine various sources of information and use that information for the better of an organization. This may not be true to some organization. Some organizations have departments or units in which employees are confined. As such, employees are restricted to what kind of information they can access depending on their respective departments or units. Source
With regards to employees’ abilities or competences information is easily accessible its assumed that all information about all employees abilities or competences within an organization is readily available in electronic form, and it can easily be accessible by anyone within an organization. In reality, some firms do not have such employees’ information on electronic yellow pages where everyone can access. Furthermore, some employees are not comfortable to have all their information available and accessible to anyone else apart from the ones they want them to get access to such personal information (Aggestam, 2015).
Owing to the fact that employees are experts in the particular area and can easily educate other employees, however in KMS; it is assumed that employees of an organization are experts in the certain field of their work and can quickly train and support other staff. This may not be true to some organization. Some employees may not be will to share their knowledge with each other for free. Unless some incentives are attached to information sharing within an organization, it will be difficult to for some employees to open up and share information with their colleagues.
It is widely acknowledged that project teams have virtual project offices, but under KMS, it is assumed that project teams have special virtual project rooms where all information and correspondence with internal and external customers is collected there. In reality, some organizations do not have such teams and rooms where such information and communication can be collected. Source
Bonus schemes are widely used in companies; nevertheless, it is assumed that most organizations have bonus schemes that are created to activate further knowledge sharing or flow with an organization. In reality, most organization do not have such bonus schemes to encourage employees to share and allow flow of information within the organization.
How do you define a small to medium enterprise (startup?)
Small and medium-sized enterprises (SMEs) are independent firms that employ fewer numbers of employees or workers. They are non-subsidiary firms. Small and medium-sized enterprises are those firms with fewer than 50 workers or employees, but this number of employees or workers may vary across countries all over the world (Hislop, 2013).
What is the Knowledge Economy and what does it have to do with SMEs?
Most of the small and medium-sized enterprises face several problems in their operations. Such problems include lack of enough capital, less marketing competition from large organizations, lack of quality operational knowledge (Croteau, 2016).
Some of these problems hinder Small and medium-sized enterprises to successful compete with other firms. It is, therefore, important for Small and medium-sized enterprises to adopt knowledge management system to help them improve their competitiveness. A good understanding and use of knowledge is an important boost to firms’ competitiveness.
Knowledge management system aims at improvement of firms, profits. As such, Small and medium-sized enterprises should adopt it. Small and medium-sized enterprises will benefit since knowledge management ensures effective communication within the firm and knowledge sharing which is very critical to any firm’s success or failure (Hislop, 2013).
Small and medium-sized enterprises should aim at improving their competitiveness so as to be able to survive in this tough market. With the adaptation of knowledge management system, Small and medium-sized enterprises will definitely improve their competitiveness hence a high chance of becoming large organizations.
Why would SMEs want to have KMS (eCommerce)?
Small and medium-sized enterprises want to have knowledge management system so as to; Increase revenues – since knowledge management systems enhance business revenues through getting products and services to the market faster, small and medium-sized enterprises desire to make more revenues so as to expand will drive them to knowledge management system use (Dalkir ,2011).
Knowledge management encourages innovation – knowledge management system fosters innovation within an organization. As such, small and medium – sized enterprises also desire to be more innovative so as to acquire a competitive age to help them grow to large organizations.
Improved customer services – knowledge management system ensures improved client services. As such, small and medium – sized enterprises will also desire to satisfy their customers. Satisfied customers are likely to remain loyal to an organization. With loyal customers’, small and medium – sized enterprises are more guaranteed to grow or develop to large organizations.
Discuss key challenges to the implementation of KMS in SMEs.
Implementation of knowledge management system in SMEs is hindered by various challenges. For instance, SMEs considerably rely on technology – knowledge management system relay more on technology. Therefore, a failure in technology may have a negative effect on the operation as well as the profits of an organization. It’s worth noting that knowledge management system is a technology-driven system. As such, it’s intricate to distinguish knowledge management system and technology.
Moreover, it is difficult to get employees to effectively use information – availing information to employees is not enough. Getting employees to effectively and efficiently use available information is more critical. Some people take the time to get interested in some information. As such, knowledge management system implementation in SMEs may take time for it to be accepted and put in effective and efficient use.
Constraints of information circulation among employees are somehow difficult in SMEs particularly when such information is likely to empower another employee to become more relevant and competitive within an organization. Employees do compete for promotions in some organization. As such, it will be very difficult for an employee to share with other (Aggestam, 2015).
Another challengelle is the unwillingness of information sharing amongst employees’ of an organization – it is a great deal to get an employee to share whatever information he or she has free of charge. Therefore, implementation of knowledge management system may not be possible for some SMEs.
References
Aggestam, L. (2015). Learning Organization or Knowledge Management–Which Came First, The Chicken or the Egg? Information technology and control, 35(3).
Borchardt, U. (2012, January). Selecting KMS for SME-A Need for Value-Orientation. In Workshops on Business Informatics Research (pp. 26-37). Springer Berlin Heidelberg.
Croteau, J. (2016). Knowledge Management Best Practices.
Dalkir, K. (2011). Knowledge management in theory and practice (2nd Edition). Cambridge, MA: MIT Press.
Edvardsson, I. R., & Durst, S. (2013). The benefits of knowledge management in small and medium-sized enterprises. Procedia-Social and Behavioral Sciences, 81, 351-354.
Groff, T., & Jones, T. (2012). Introduction to knowledge management. Routledge.
Hislop, D. (2013). Knowledge management in organizations: A critical introduction. Oxford University Press.
Holtshouse, D. K. (2013). Information technology for knowledge management. U. M. Borghoff, & R. Pareschi (Eds.). Springer Science & Business Media.
Jung, J. J. (2013). Semantic wiki-based knowledge management system by interleaving ontology mapping tool. International Journal of Software Engineering and Knowledge Engineering, 23(01), 51-63.
Lin, Y. C., & Lee, H. Y. (2012). Developing project communities of practice-based knowledge management system in construction. Automation in Construction, 22, 422- 432.
Matayong, S., & Kamil Mahmood, A. (2013). The review of approaches to knowledge management system studies. Journal of Knowledge Management, 17(3), 472-490.
Montequín, V. R., Fernández, F. O., Cabal, V. A.,& Gutierrez, N. R. (2006). An integrated framework for intellectual capital measurement and knowledge management implementation in small and medium-sized enterprises. Journal of Information Science, 32(6), 525-538.
Natek, S., & Zwilling, M. (2014). Student data mining solution–knowledge management system related to higher education institutions. Expert systems with applications, 41(14), 6400-6407.
Powell, W. W., & Snellman, K. (2004). The knowledge economy. Annual review of sociology, 199-220.
Premkumar, V., Krishnamurty, S., Wileden, J. C., & Grosse, I. R. (2014). A semantic knowledge management system for laminated composites. Advanced engineering informatics, 28(1), 91-101.
Rehman, M., Mahmood, A. K., K Sugathan, S., & Amin, A. (2009). Implementation of Knowledge Management in Small and Medium Enterprises–Malaysian Perspective.
Wang, S., Noe, R. A., & Wang, Z. M. (2014). Motivating knowledge sharing in knowledge management systems a quasi–field experiment. Journal of Management, 40(4), 978-1009.
Wiig, K. (2012). People-focused knowledge management. Routledge.
Zaim, S., Bayyurt, N., Tarim, M., Zaim, H., & Guc, Y. (2013). System dynamics modeling of a knowledge management process: A case study in Turkish Airlines. Procedia-Social and Behavioral Sciences, 99, 545-552.
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Digital Marketing: Tool to Increase Hotel Awareness
Digital marketing is the process by which products, services or brands are advertised through one or more forms of electronic media. Unlike the old-style of marketing, this process consists of methods and strategies that allow an organization to evaluate marketing schemes and understand the approaches that work and what is not in real time. Digital marketers carefully observe how long and how often prospective customers visit the site.
The internet is the avenue that is closely related to digital marketing. However, digital marketing also involves the use of electronic billboards, digital television, radio channels, and mobile apps. Digital Marketing is important because most consumers spent more than half of the day online and they often use social media as a source of social interaction, entertainment, news, and shopping (Sas.com, n.d.).
Digital Marketing has some advantages. To begin with, it is a global platform – a website allows the business to find new target markets across the globe and be able to trade with other people even without seeing them. Second, it tracks and measures results – through the use of online metric tools, determining the number of buyers and consumers who visit the online website is easy. Therefore, the result or the statistics that can be drawn from the metric tools can be a useful measure to determine whether the company is reaching its targets and objectives.
Finally, it creates openness and personalisation. Social marketing and networking can help a company to build good relationships with their customers. Furthermore, digital marketing could rapidly increase the social awareness of a particular brand could (nibusinessinfo.co.uk, 2016).
Digital Marketing has been the primary tool of all industries – including hotels in the hospitality industry. The industry saw positive growth in 2015. With the continued progress, hotels are expected to use technology to increase the awareness of the market. The rise of millennial travelers as the dominant consumers in hotels has a growing interest in the usage of mobile devices and applications to look for more personalized hotel guest services (Hospitality Net, 2015). Therefore, it is important that Mobile Search is present in hotels.
The trend in Digital Marketing is the Mobile search. Research studies have established that three out of five individuals use mobile devices to explore and look for information, and 80% of local hunts are converted to purchases. It is worth noting that hotels have a website which is optimized for mobile search to enhance mobile traffic and ensure a full-bodied content that can be shared on social media. Also, sites should contain directory listings, maps, and local citations to strengthen the hotel’s local presence.
Engaging the customer through the content requires exciting local attraction, activities, visuals, and trending topics. Through the use of digital marketing tools which determine the time spent on a visited web page, hotels can identify the type of contents that should be enhanced to encourage customers to visit the website again. By doing this, a potential customer could buy products or services offered by the hotels (Blog.milestoneinternet.com, 2015).
Understanding the behavior of travelers would help to develop the digital marketing strategy of the hotel. The industry should realize that people are more interested in a business that knows their needs, provides a personalized and relevant communication and that which provides tailored preferences depending on their necessities. Therefore, it is essential that the company or hotel should update the content of their website based on the needs of the potential customers or travelers. This will help to attract more clients; thus, it will lead to more profit for the company (Sas.com, n.d.).
Hotels in the hospitality Industry should remember that brands will not exist without consumers patronizing on it. For this reason, the purpose of digital marketing is to build and increase brand awareness especially in remote hotels. The goal of the digital content marketing is to establish the hotel’s brand as attractive, valuable and trusted. The reason why digital marketing requires fresh and innovative content is to make sure that the brand message will not be overlooked.
It is necessary because nowadays high competition is very intense in the hotel industry. The high competition in the hotel industry is healthy because many search engines give rewards to those businesses that update the content of their sites with a higher ranking while silently punishing the stagnant websites with low organic rankings.
With this in mind, hotels can improve their websites in three simple ways. First, hotels should identify the interest of the travel enthusiasts’ and potential customers. Second, provide information that is relevant to their needs. Finally, provide them clients with an edge that will have value to them.
Though hotels can use the digital content marketing to showcase the new services and products, honesty and accuracy about the brand should be the primary core value. Digital content marketing allows the hotel to come up with a creative explanation on how they can address the needs of their customers. The content in websites should also indicate how the industry is established and the popularity of the business in the marketplace (Parker, 2016).
Regression Analysis
Regression analysis is a mathematical way of sorting out which variable has the most impact. It answers the questions of which variable matter most and how these variables interact with each other (Gallo, 2015). Regression analysis is used when we want to predict a continuous dependent variable from independent variables. After the collection of data (variables), all information will be relayed using a chart (Abrams, 2007).
The fundamental and the most common predictive analysis used is the Linear Regression analysis. The formula defines the basic form in one dependent and one independent variable:
y = β0 + β1x
Where y is the estimated dependent, β0 is constant; β1 is the regression coefficients, and x is the independent variable.
Regression analysis is often used in the casual analysis, the forecast of effect, and the trend of the forecast. To begin with, the casual analysis is used to determine the effect of the dependent variable to the independent variable. Second, forecast effects help the company to recognize the weight of result to the dependent variable change if there will be a change in one or more independent variables. Finally, forecasting the trend helps to point out the approximations where a typical question could be the price of X months from now (Statistics Solutions, 2013).
On the contrary, when conducting a hypothesis test, one is likely to come across two types of possible errors namely; Type I and Type II errors. The risks of these errors are determined by the level of significance and the power of the test. Therefore, it is important to identify which type of mistakes has more severe consequences.Type I error occurs when the null hypothesis is correct, and it has been rejected.
The common mistake for this kind of error is when it is confused with statistical significance and practical significance. One should be cautious that a large sample size is more likely to detect a small difference. Hence, it is essential to consider practical importance when the sample size is large (Ma.utexas.edu, 2011). Conversely, when the null hypothesis is not correct, and it is not rejected it is often referred to as Type II error (Support.minitab.com, 2016).
Assumptions of Regression
Some statisticians believed that when a statistical process is not normally distributed, there is a mistake with the process, or the process itself is out of control. A chart can be used to determine when the process is non-normal so that statisticians can make corrections and return it to normality. Many procedures do not follow the normal distributions. Some of the examples include cycle time, customer waiting time, shrinkage et cetera (Isixsigma.com, 2016). In line with this, content validity is concerned with sample-population representativeness such as knowledge and skills (Yu, 2012).
Linear regressions require at least two variables of metric scale. The rule of regression analysis is that it has to have at least twenty cases per independent variables in the analysis. Regression has four assumptions. First, it should be linear such that there should be a relationship between the dependent and independent variables. The use of scatter plot can be used to test this assumption. Second, all variables have to be multivariate normal as required in the regression analysis.
This assumption can be tested through the utilization of a fitted normal curve or a Q-Q plot and a histogram. Third, the analysis agrees that multicollinearity is not in the data. It happens when no dependence occurs among independent variables. Finally, auto correlation is expected to be less in the data of regression analysis. The auto correlation exists when there is no reliance on the residuals (Statistics Solutions, 2016).
The following will provide different formula with the corresponding variance of returns:
Beta value is a measure of how strong one stock responds to the systematic instability of the whole market. 1 Beta occurs when the stock reacts to the uncertainty of the market with the market on average.
Yi=α+βXi+εi
On the other hand, correlation coefficient should be between -1 and 1. Where -1 means that the market and the stock move in the opposite directions. On the other hand, 0 means that the market and the stock do not have a relationship with the movement. Lastly, 1 implies that the market moves along with the stock.
β^=cor(Jixi)⋅SD(Yi)SD(Xi)
Both will tell the strength of the linear relationship between Xi and Yi. However, they always provide distinct information. The correlation provides a restricted measure that can be understood independently of the scale of the two variables. On the other hand, Beta gives a useful quantity construed as the predicted change in the expected value of Yi for a particular value of Xi (Stats.stackexchange.com, 2012)
The R-squared is a measure used to identify how to close the data to the fitted regression line. R-squared is always between 0 and 100%. It is defined as the variable response variation’s percentage explained in a linear model.
The zero percent (0%) happen when there is none of the variability of the response data is around its mean. On the other hand, the 100% pertains when all its variability of the response data is around its mean. However, there is a question often asked on what should be the good value for R-squared or how big does R-squared is required for the regression model to be valid and reliable. It would be advisable to look at adjusted R-squared rather than R-squared (People.duke.edu, n.d.).
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Based on the result of the data from SPSS, R-squared is .145 or 14.5%. The adjusted R-squared is .139 or 13.9%, is just almost the same percentage of the R-squared pertaining to the mean square of regression which is 13.352. Since the R-squared is relatively low; the model proposed is not possible or fitted based on the data provided.
Moreover, the probability of examining the observed results when the question is valid from the null hypothesis is called the calculated probability or the P-value. The P is defined as rejecting the null hypothesis when it is true (Statsdirect.com, 2016). The one-sided P-value is only used when an unexpected direction from a significant change makes no relevance to the study. To connect with the hypothesis, the P-value is used to specify a probability which is adopted to calculate after a particular study, and the level of significance pertains to a pre-chosen likelihood.
Analysis
The increase of hotel awareness in relation to the data presented varies on the result of each of every variable in the calculation. The Pearson correlation of Y2_spc_brecal shows a positive 1.000 correlation. Moreover, the Pearson Correlation of X2_spc_person shows a positive .381 correlation. These values indicate that the variables in the data move in tandem since both are positive. As one variable increases, other variable increases, and vice versa. The table below shows the correlations between the variables.
The model summary of the result emphasized that R-squared is .145, or a 14.5%, and the adjusted R-squared is .139 or 13.9%. The result indicates that the model is not fitted because R-squared and adjusted R-squared are both low. The Standard Error of the Estimate is an estimate whether the prediction is accurate or not. In regression line, when the standard error of the estimate is small, the prediction tends to be accurate. Based on the result, it shows that the Standard Error of the Estimate is .737 or 73.7% which is obviously high. It means that the prediction is not accurate.
Marketing Hypotheses Analysis
There are several hypothesis that can be drawn in marketing but the most common and essential hypothesis is that digital advertising can directly enhance brand recall and recognition. The two (brand recall and brand recognition) are an entirely different thing. Though, there would be no brand recall without brand recognition. Remembering and recognizing a brand plays a critical role in attracting more buyers to stay firm in the brand of a certain product and buy them continually.
There are ways to study if a purchaser will select a product because of brand recall or brand recognition. For an instance, a brand recognition may occur when a customer watches movies or televisions where the advertisement of a product is placed. When a buyer knows the presence of a product through the online ads, the internet, or television, he/she will be aware of the product and subconsciously her/his brain will look for that brand and instantly decide to buy the product. Hence, digital marketing helps increase the recognition of a particular product/brand.
Another hypothesis could be brand recall can be improved through personalization in digital marketing. In a simple definition, personalization is the delivery of messages or experiences to a consumer based on the info about a particular person. Some terms that could describe digital personalization are data management platform (DMP). It is a database that saves consumer info which can be shared with other media like the website, email channel, applications and dynamic creative optimization (DCO), the technology that is utilized to modify sending messages from DMP data (Diamond, 2015).
There is two new development in digital personalization. The first pertains to the customers. It is said that consumers have changed as well as their demands. A brand gathers customer’s data with the conjecture that the info will be applied to add worth or value to a consumer’s experience. The anticipation of pertinent and personalized brand collaborations will progress as businesses keep on making more investments human capital and customer-focused technology.
The second development is the technology needed for integrating personalization in digital marketing stratagems which are more accessible to product trademarks. Currently, marketers have the tools to gather info wherein they can precisely reach the clients and prospects. It helps increase the effectivity and efficiency of their campaigns through digital marketing (Diamond, 2015).
In relation to the hotel industry, the hypotheses discussed are relevant in a sense that customers always rely based on the experience of other people. For example, if a traveler wants to stay in a particular place, he/she will browse the internet to see the different hotels and its reviews. He/she will read the experiences of the other people who stayed in the hotel. If the rating of a hotel is high or has excellent reviews, the probability of a potential customer to stay in that hotel is very high. Also, recognition and recall of a hotel’s name are crucial in the preferences of the client to stay in a hotel.
Table 3. Hypothesis and Its Correlation
Hypothesis
Correlation
Hypothesis 1: Digital Advertising can directly enhance brand recall and recognition
Based on the SPSS result there is a significant correlation between digital advertising and brand recall of because its regression result which is .416 is above 0.05 level.
Hypothesis 2: Engagement in digital marketing with interactive media programming and value content can increase brand recognition and brand recall.
Hypothesis 3:Positive and neutral value added UGC is valuable in affecting brand recall in digital marketing.
Hypothesis 4: Brand recall can be improved through personalization in digital marketing
Hypothesis 4: Brand recall can be improved through personalization in digital marketing
Hypothesis 5:Brand awareness can be increased by influence in digital marketing
Hypothesis 6: Digital advertising can increase brand recall.
Hypothesis 7: Digital personalization can increase brand recall.
Hypothesis 8: Digital influence can increase brand recall. Hypothesis 9: Digital user-generated-content can increase brand recall
Hypothesis 10: Digital engagement can increase brand recall.
Conclusion
It is evident that Digital Marketing and Social media are having a substantial impact on how customers behave. With the use of technology, hotels can take advantage of the growing online spending and Smartphone technologies. Through the use of social media and mobile marketing strategies, hotels can increase the awareness of brands in the hospitality industry since prospective customers spend most of the time using different social media tools.
Travel enthusiasts and other potential customers will be provided with direct reservations using the booking software hotels continue to embrace the idea of digital marketing.Through the use of regression analysis, hotels in the hospitality industry would be able to determine the behaviors of the travelers. Moreover, this will allow hotels to identify how they can provide full-bodied information to engage customers and lead them through finalizing their purchase.
Ma.utexas.edu. (2011). Type I and II Errors. [online] Available at: https://www.ma.utexas.edu/users/mks/statmistakes/errortypes.html [Accessed 26 May 2016].
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Product Vision
In an existing and competitive market, the need to develop a compelling and innovative product is important. The new product should meet the needs of all the stakeholders, and be part of the company’s mission and vision. To ensure that the new product creates customer traffic, an intensive feasibility study is essential in determining the expectations of the market.
Moreover, a business model that showcases the qualities needed for business to succeed would be created about the company’s business and corporate values. To succeed in the competitive market, a well-articulated product vision acts as a motivator to stakeholders and is key to bringing growth and profitability to the business. The new market is in food and beverage industry, and it seems viable due to low restrictions to entry, low start-up capital, and a high market share.
Product vision and organizational values
Product vision is an outline of the expectations of the product. According to Tim (2015), a good product vision incorporates the needs of the customers, the value the product will add to the customer, and how it will gain a competitive edge. To develop a persuasive product vision, one should illustrate the elements of motivation towards the new product, make the vision be an inspiration to all stakeholders, integrate all parties to the product, and make sure the vision gives guidance towards decision-making processes.
For a start up, a compelling product vision goes a long way in ensuring the business gets a substantial market share. If the vision does not meet the standards of the product and market competition, the business is bound to fail. For the new product, the product vision will be “Our vision is to improve the lives of people daily. Our organizational goal supports the vision by making sumptuous and natural foods and beverages that help people preserve their health.”
Business and corporate values define and support product vision and mirror the company’s image (Wendy, 2013). These values incorporate internal and external structures of the business, assist in decision making and are used by customers and potential investors to evaluate the company.
Thus, there is a dire need to come up with business and corporate values that will help the new business realize its goals. The business and corporate values that I intend to create are: commitment to a quality product and other aspects of the business, exercising utmost integrity towards all stakeholders, innovation for product and brand improvement, corporate social responsibility, and having a balanced work life for the employees.
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Need for the product and market overview
As a start-up company, there is a need to diversify the product portfolio to ensure that the business is sustained. Depending on one or a few products is risky thus it is important to develop the new product so as to tap a new target market for increment in revenue generation. There is a market gap in the form of unsatisfied customers who are ready to exploit new products thus if the necessary components are incorporated into the product the potential for business success is high. Thus, the need for a new product is to increase product portfolio for the business, increase market share, increase revenue and profits and increase value to customers.
The new market is in foods and beverage industry. Though it’s one of the most competitive industries in the world, entry is free and restrictions are few, initial capital set up is low since raw materials are easily and cheaply accessible, a high number of potential customers and operational costs are low. Though competition is high due to a high number of substitutes, customers go for healthy and nutritious products which most competitors haven’t been able to provide.
Currently, most customers have filed complaints regarding the service and quality of products offered by most of the existing businesses thus creating a golden opportunity for the business to introduce the product. Customers will flock in the firm to try out the new product and will be looking forward to a product that satisfies their needs. Therefore, since the business is committed to the provision of a quality product as per the product vision, customer traffic, and revenue will increase leading to sustained growth for the whole organization.
Business model
The business model is the layout that a business uses to describe what it intends to offer in the market, project profitability and market expectations. A great business model is one that attracts customers to the new product, retains the customers, increases value to the customers, and generates revenue to the business. On the other hand, a business model that makes it hard to satisfy customers does not position the product in the market, and does not provide required capital for growth should be avoided.
Thus, for a business model to qualify for application, it should bring value to the customer and the business (Andrea, 2015). Some of the elements of the business model include a statement describing what the business has to offer that the competitors do not have, product choices in the form of a menu, the targeted customer base, profitability and financial forecasts, and strategies the business will use to penetrate the market.
By using the example of Amazon, the applicable business model will be price cut so as to first penetrate the market for long-term sustainability at a later stage. The first thing to do is to get market share, and since the industry is already over-populated, provision of quality products at low prices to the target market.
Afterward, given that the company will grow, supplies will be engaged so that they can reduce the price for the supplies, more investment will be made on capital structures and technology so that service and product delivery will be enhanced. As a result of reduced product costs, the business will continue to provide the products at low prices and market share will increase.
Feasibility analysis
The main reason for carrying out a feasibility study is to identify root issues that relate to a particular product or service. At the end of the analysis, the business idea should be termed as viable or be rejected (UWCC, 2013). Most importantly, the feasibility study should identify potential roadblocks for the business idea so that necessary precaution measures can be undertaken. For the analysis, the areas covered include market, financial, and organizational analysis.
Market analysis: Competition is intense in food and beverage industry due to low start-up costs and not restrictions on entry, market is in existence for the product due to high number of unsatisfied customers, raw materials are readily available since most of them come from nearby town that is agricultural based, the target population for the product is the working population since it the premises are within the town centre.
Technology and organizational analysis: Since the company is partnership form of business, the partners will take full control of managing the business thus it will be possible implement the idea. It is easy to plan and execute the idea when owners of the business are the ones involves since they have undivided interest towards the business. To tap into technology, use of online marketing tools would serve as an innovative tool to access a market share.
Financial analysis: initial set-up costs and operating costs will be funded by partners from the capital contributed during the start-up process.
From the feasibility analysis, the business idea is feasible since most of the required resources are available. However, some of the roadblocks the new product may face are competition from substitutes, financial problems since it’s hard to source for revenue without enough security, and conflict of interest among the partners.
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Future financial position of the company
The future of the company depends on the success rate of the new product line. Getting into a new venture is usually a risky process, and it requires proper implementation and dedication to succeed. Based on the feasibility analysis, there is a high chance that the product will succeed and bring profits both in the short-term and long-term. If all the stakeholders have a common goal and use the product vision and set up business and corporate values, the future financial position of the business will be high.
From the market analysis, it is evident that a market gap exists in the form of value addition to the customers. It, therefore, calls for the business to acquire quality materials and manufacture products that meet the desires of the customers, which will drive sales and profits thereby. Additionally, supplies are available from the nearby community thus costs will reduce and make it possible to offer the new products at low prices.
The premises are based within the town center, and the target market is composed of the working people who have specific times for accessing the stores. Thus it makes it easy to plan for processing, packaging, and sales. The use of the online platform is meant to increase awareness of the new products and increase market share. Though competition will be high due to existing substitutes, financial success is likely to be realized in the short term.
Penetrating a new market and get a consistent flow of customers usually takes time but if a proper feasibility analysis is carried out and right resources put in place, success is guaranteed. Food and beverage industry is one of the most competitive due to few restrictions to entry and low start-up capital requirements. However, it takes a compelling product vision and company values to be able to make right decisions that will see the business satisfying the needs of the customers and generates profits.
If all the needs of the stakeholders are met and every employee works towards realization of the product vision, a business is guaranteed of future financial growth if the right resources are matched with the market needs. The business already has enough capital to implement the idea, the owners will take responsibility for managing the resources, a gap exists in the market for possible product penetration, and fresh and quality raw materials are readily available.
The importance of reputation to British American Tobacco
The importance of reputation to British American Tobacco
Introduction
BAT (British American Tobacco) is a multinational Tobacco organisation that has its headquarters in London and operates in approximately 180 countries across the globe (Vance, 2011). The company has had several controversies in the past, which have in a number of ways deteriorated its reputation (Vance, 2011). These include the; Canadian class action lawsuit, HMRC fine due to oversupplying, Australian lawsuit, bribery in Kenya, Burundi and Rwanda, and Pakistan lobbying efforts, among others (Freeman & Chapman, 2010).
However, the company has put several measures to rebuild good reputation, owing to its benefits in the current ever-changing business environment. This essay therefore discusses the importance of reputation to BAT and how health issues affect its operations.
The importance of reputation to British American Tobacco
Reputation refers to opinions and perceptions that people, or customers have about a specific entity. BAT can enjoy many benefits for having a good reputation. To start with, a good corporate reputation is important for BAT because the company can use it as a promotional and marketing tool. In reference to Diermeier (2011), customers always remember unique or outstanding services and products, and they never forget or forgive products or services that fail to satisfy them.
However, if BAT products, for example, satisfy the needs of its target audiences, then these audiences can act as unofficial spokespersons of the company by convincing their friends and relatives to try the products. As such, it can be concluded that a good corporate reputation can reduce the advertising costs of BAT because the company does not need to spend a lot of money on employing or seeking services of agencies of advertising to convince its target audiences.
Moreover, with a good reputation as an already established brand, consumers of tobacco are more likely to prefer being associated with BAT, an indication that a good reputation can act as a promotional and marketing tool for BAT.
Secondly, according to Morphet (2015), a good reputation enhances integrity and credibility. Acknowledging that reputation describes its identity or organisation culture, BAT can become a credible organisation, and prove its integrity whenever people talk negatively about its products or services. This implies that instead of spreading bad reviews and warnings about the company’s products, customers can recommend and promote BAT’s businesses.
Thirdly, a good corporate reputation establishes confidence, trust, superb customer relationships and loyalty (Diermeier, 2011). BAT can enjoy this benefit by avoiding all sorts of controversies and scandals. However, in reference to Morphet (2015), achieving untainted reputation is not about avoiding scandals and controversies; it is more of satisfying the needs of target audiences.
As such, by building a good reputation through observing continuous perfection, BAT can earn a strong sense of security. This implies that the company’s customers can be assured that they will always get satisfactory results if they consume BAT’s products.
Fourth, having good reputation enables an organisation to increase its business opportunities (Komisarjevsky, 2012). As such, having a good reputation can enable BAT to not only attract customers, but also catch the attention of interested business partners and investors. In other words, having a good reputation can help BAT to generate many possibilities for expansion and growth of its business.
Moreover, according to Komisarjevsky (2012), a good reputation can enable a company to survive in a highly competitive market. This implies that with a well-established reputation, BAT is likely to lessen its worries about customers switching to other tobacco providers. This is because the company’s outstanding reputation can make consumers to prefer its products regardless of how expensive they might be because they trust that the products can satisfy their needs.
From a different perspective, Morphet (2015) postulates that a good reputation is important to the careers of CEOs. As such, by having a good reputation, the CEO of BAT is likely to benefit because it is likely to evaluate the CEO’s performance, and make necessary changes. This is because the reputation of an organisation is directly linked to the performance of a CEO (Komisarjevsky, 2012).
Megatrends in Tobacco industry: Health Issues surrounding BAT
Health issue is one of the megatrends in the tobacco industry, which affect BAT’s business operations (McInnes & Lee, 2013). This issue can be discussed further by looking at how regulation, legislation, education, among other factors affect the operations of BAT across the globe. With regards to regulation, World Health Organisation (WHO) drafted a convention on tobacco control measures to ensure high health standards (Lueddeke, 2016).
This convention acts as a regulatory strategy, which not only addresses the addictive tobacco substance, but also promotes awareness of the side-effects the consumption of tobacco has on human health (Miller & Cross, 2014). It holds that tobacco creates a global health epidemic, and this has resulted in many governments across the globe developing a series of restrictive measures such as standardised packing, and bans and warnings of consuming flavoured tobacco (McQueen, 2013).
Health-based regulations, for example, those requiring organisations to print messages such as ‘smoking kills’ or ‘smoking is harmful to your health’ on their packets, and banning of advertisements related to tobacco affect the competitiveness of BAT and other companies operating in the industry (McInnes & Lee, 2013). Additionally, the enactment of WHO convention regulations that are not evidence-based increase complexity and costs and interfere with the ability of tobacco companies (Proctor, 2012).
Education is another factor linked to the health issues in the tobacco industry. Public education and awareness of the health issues of tobacco consumption continues to increase in all parts across the globe (Lueddeke, 2016). For instance, the well-financed anti-smoking education programmes in schools, social media, and societies provide emotionally engaging, detailed, and prominent information about the hazardous effects of smoking tobacco, thus, reduce the demand for tobacco products (McQueen, 2013).
Such programmes also warn target audiences that tobacco companies entice people to smoke their products through different types of advertisements (Freeman, Hawkes & Bennett, 2014). However, some companies in the industry have been in the forefront in sponsoring programmes associated with youth drinking as a way of building their reputation in the public eyes and minds (Proctor, 2012).
This includes partnering with governments and less sophisticated public health groups, and this has enabled them to reduce the opposition of their industry operations in different regions (McInnes & Lee, 2013). This clearly indicates that their purpose is not to reduce youth smoking, but instead serve the tobacco industry’s needs, for example, marginalisation of public health advocates, control of harsh regulations on them, participation in policy making, and diffusion of opposition from educators, among others (Lueddeke, 2016).
In other words, it is evident that in the current tobacco business world, despite the increasing efforts in anti-smoking education and public awareness, little success has been achieved from the anti-smoking campaigns. This indicates that the demand for tobacco companies’ products is still on the rise.
With regards to legislation, many health-related laws have been adopted pursuant to the Tobacco Act by governments across the globe to control the sale, manufacturing, labelling, promotion, and consumption of tobacco (McQueen, 2013). However, public consultations are pursued whenever new laws are developed (Freeman, Hawkes & Bennett, 2014).
One of the new laws regulating the tobacco industry is Tobacco Products Labelling Act which stipulate the health-related labels that must be displayed tobacco products. This law reduces the smoking rates, thus reducing the demand for tobacco products of BAT and other companies in the industry (Lueddeke, 2016). Additionally, the 2010 Prevent All Cigarette Trafficking Act, which some of its acts is still under litigation prohibits mailing of tobacco products and requires mail order and sales retailers to comply with requirements pertaining age verification (McInnes & Lee, 2013).
For instance, this law requires retailers to pay appropriate taxes for tobacco products. However, due to health concerns, many governments across the globe have and continue to raise taxes associated with tobacco business pursuant to Tobacco Act (Proctor, 2012). This law not only reduces the demand for tobacco products from companies such as BAT, but also increases the price of tobacco products and restricts companies from expanding to countries with stringent tobacco laws (Miller & Cross, 2014).
However, despite taking appropriate health-related measures through regulations, legislations, and education or public awareness, the issue of tobacco addiction still remains a difficult issue to solve in many countries across the globe (McQueen, 2013). The addicted victims continue to boost the tobacco business because they can do without it.
However, most governments across the globe have taken effective rehabilitation measures to counter the issue of tobacco addiction, which in a number of ways have proved to be successful (McInnes & Lee, 2013). Therefore, the issue of health reduces the demand of tobacco products, thus, reduces growth and expansion of BAT and other companies operating in the tobacco industry.
Conclusion
The benefits of reputation to BAT include; reduces the advertising costs, enhances integrity and credibility, establishes confidence, trust, superb customer relationships and loyalty, enables an organisation to increase its business opportunities, and is important to the careers of CEOs. Regulation, legislation, education, among other factors affect the operations of BAT across the globe. These factors reduce the demand for tobacco products, thus, restrict the growth and expansion of BAT in its global tobacco business.
Freeman, B., & Chapman, S. (2010). British American Tobacco on Facebook: undermining article 13 of the global World Health Organization framework convention on tobacco control. Tobacco control, 19(3), e1-e9.
Freeman, M. D. A., Hawkes, S., & Bennett, B. (2014). Law and global health. Oxford, United Kingdom: Oxford University Press.
Komisarjevsky, C. (2012). The power of reputation: Strengthen the asset that will make or break your career. New York: American Management Association.
Lueddeke, G. R. (2016). Global population health and well-being in the 21st century: Toward new paradigms, policy, and practice. New York: Springer Publishing Company.
McInnes, C., & Lee, K. (2013). Global Health and International Relations. New York, NY: John Wiley & Sons.
McQueen, D. V. (2013). Global handbook on noncommunicable diseases and health promotion. New York, NY: Springer.
Miller, R. L. R., & Cross, F. (2014). The legal environment of business. Australia: South-Western.
Morphet, J. (2015). Applying leadership and management in planning: Theory and practice. Bristol, UK: Policy Press.
Proctor, R. (2012). Golden holocaust: Origins of the cigarette catastrophe and the case for abolition. Berkeley: University of California Press.
Vance, B. (2011). BAT British American Tobacco. Oxford University Press.
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Low-caloric foods which have already been frozen and can be warmed in a microwave have over the recent past continued to receive wide acceptance by consumers prompting many big food manufacturing companies to embark on expansion strategies both in the production potential and market share (Wall & Griffiths, 2012). The economic aspect in the demand estimation of the firm’s food for managerial and marketing decisions is to be covered in this paper.
The basis of the assignment is on focused on two regression models or equations highlighting two marketing options, and the data used in the demand estimation is for the month of April from 26 supermarkets that sell the firm’s foods. Thus, for effective marketing decisions to be made it becomes inevitable to adopt a multifaceted approach by considering a wide range of factors that have potential to influence the demand and supply of the firm’s foods (Frank, 2013; Samuelson & Marks, 2013).
Calculations
In demand estimation, it is very imperative to apply analysis of demand in managerial economics to achieve the biggest market share possible (Sullivan & Sheffrin, 2013; McGuigan, Moyer & Harris, 2014; Metcalf, 2015). The demand estimation of either a single a multiple products in the market are very essential to provide a firm’s management as well as marketers with necessary market insights (Frank, 2013; Metcalf, 2015).
This is a very important step in devising and planning for an appropriate marketing strategy based on informed decisions that are data based as evidence (Frank, 2013; Sullivan & Sheffrin, 2013).
For the first option, the regression equations or model used in the calculation of the firm’s demand elasticities as well as the allowable standard errors and regression statistics are shown below:
Elasticity Implications
The implications of elasticity have far reaching effect on the quantities demanded as well as supplied in a market (Pettinger, 2012). According to Samuelson and Marks (2013), reiterate that this is because it provides important insights on demand estimation and making vital marketing decisions on whether the firm should embrace a discounting strategy or increasing or decreasing prices for its foods for increased generation of revenue.
Elasticity implications are a true manifestations of the law of demand to determine market equilibrium, whereby this phenomenon concurs with the law of demand and market dynamics, which outlines that demand is inversely related to prices whereby the former increases with a decrease in the latter and vice versa (Wall & Griffiths, 2012; Samuelson & Marks, 2013).
According to Frank (2013), calculation of elasticitiees allows the determination of the nature of demand in the market whether it is elastic or inelastic and also if it is absolute or in absolute value so that the sensitivity of consumers to prices can be established for an appropriate pricing strategy to be devised. The calculated elasticity values are shown in the table:
Pricing Recommendations
The firm’s price demand elasticity obtained through calculations is a 1.19 absolute value, which means that it is elastic. According to Wall and Griffiths (2012), this elasticity implies that price discounting is definitely that more appropriate marketing strategy that the firm can adopt. This is mainly because, this strategy has a very high potential to optimize market expansion and increase sales significantly (Frank, 2013).
This means that, by the firm reducing the prices of its foods, a significant influence of the foods supply and demand as well as sales levels. As a result, income elasticities of 1.62 and 1.11 are obtained through demand estimation calculation for both option 1 and option 2 respectively, which means that both are elastic an indication that the is a significant influence of the quantities demanded by consumers based on per capita income (Wall & Griffiths, 2012; Metcalf, 2014).
Therefore, in a market where consumers’ sensitivity to changes in prices is high because of their per capita income provides the company with an effective economic condition to embrace reduction of prices or provision of discounts in order to increase sales (Pettinger, 2012; Metcalf, 2015).
The Demand Curve
The firm’s calculated demand and supply based on the changing factor, that is, the price as well as the plotted firm’s demand and supply curves assuming that, apart from prices all other factors that affect the foods’ demand remained constant. Therefore, firm’s food prices utilized in plotting demanded and supplied food quantities of the firm are increasing at a fixed interval of 100 cents between 100 and 600.
Equilibrium Price and Quantity
According to Wall and Griffiths (2012), the determinant of market equilibrium is the relationship between the market demand and market supply. For instance, the market equilibrium for the food prices of the firm foods obtained through calculations is equivalent to the equations quantity supplied and for quantity demanded. Therefore, the intersection at where the two curves meet is referred to as point P, and which at the market equilibrium price value of 384.48 (Frank, 2013; Metcalf, 2015).
The most significant factors that can cause a shift in demand as well as supply curves are prices and income per capita within the region considered for statistical analysis of market dynamics (Wall & Griffiths, 2012). For instance, when the prices of the firm’s foods is decreased by 300 cents from 500 cents to 200 cents, an inelastic demand of 0.44 in demand elasticity results leading to an increased supply of demanded units of the firm’s foods by 284,400.
According to Wall and Griffiths (2012), this phenomenon concurs with the law of demand and market dynamics, which outlines that demand is inversely related to prices whereby the former increases with a decrease in the latter and vice versa. Alternatively, there is a likely for the supply and demand curves of firm’s foods to be shifted by consumer income whereby decreasing consumer income levels, especially during a recession leads to an outright decrease in demand (Pettinger, 2012; Wall & Griffiths, 2012).
In conclusion, it is evidently clear that demand regression equation calculations are an ideal technique for the estimation of demand in the market for food products and in particular low-calorie and microwavable foods. Therefore, these calculations and modeling as well as demand plots can be can be a very important way through which informed marketing decisions can be made. However, it is also imperative to consider other factors that inform purchasing decisions in order to come up with an appropriate marketing strategy for the expansion of the firm’s market share as well as continue gaining more market competitiveness.
References
Frank, R. (2013). Microeconomics and Behavior, (7th ed.). New York, NY: McGraw-Hill.
McGuigan, B. P., Moyer, R. C., & Harris, F. H. (2014). Managerial economics: Applications, strategies and tactics, (13th ed.). Stamford, CT: Cengage Learning.
This report will analyse the Adidas Company. This report provides an analysis and evaluation of effective marketing planning process, techniques for controlling marketing activities, contemporary marketing techniques, and their use in global and international markets. Furthermore, the report examines the skills of marketing managers and their role in the effective management of the marketing team, value of a brand from a number of different stakeholder perspectives, and the organisation’s marketing campaigns in different international markets.
Methods of analysis will include SWOT analysis, marketing controls, and international marketing trends. Results of analysis depict that Adidas has abundant opportunities and strengths, but suffers from a number of weaknesses and threats. The report finds that Adidas has taken advantage of its strengths and opportunities to develop effective marketing plans that have assisted them to achieve their marketing objectives.
The Adidas Company has adopted marketing controls, such as annual control, profitability control, and strategic control that have helped in spotting deviations in its marketing activities and provided timely remedies to the variations. Adidas has implemented contemporary marketing techniques, such as email marketing, PR marketing, mobile marketing and the use of social media that have assisted in growing awareness of its new products in different international markets.
Marketing manager skills, such as excellent communication skills, problem solving skills, and project management skills are noted to be vital in offering effective management to marketing teams. Stakeholders, such as employees, suppliers, and customers play a significant role in influencing the value of the Adidas brand. The various stakeholders participate in building the brand equity.
The Adidas has tailored its marketing campaigns to suit the different international markets. The company uses local athletes from various countries and influencers of markets to promote its new products, X 15 and ace 15 in different international markets. The report recommends that Adidas should design products that are affordable to several customers and implement marketing techniques that promote and differentiate its products from its competitors.
Introduction
The purpose of this report is to analyse the effective marketing planning processes and evaluate techniques for controlling marketing activities of the Adidas Company. This report also studies the contemporary marketing techniques and their use in global markets, examines skills of a marketing managers, and evaluates their role in providing management to the marketing team. Furthermore, this report assesses the impact and value of the Adidas Company brands from diverse stakeholders perspectives. In addition, this report looks into the marketing campaigns the Adidas Company has employed in different international markets.
The competitive global market calls for companies to plan their marketing activities, establish their strategies and accomplish their objectives more effectively. The contemporary marketing techniques aim to create a link between the customer and the organisation. Companies attract customers through social media content significant to their needs or writing newsletters that have valuable information.
Businesses that employ contemporary marketing techniques are seen to be successful in achieving their objectives than those companies that rely on conventional marketing techniques. The report will utilise references from the company website and other research articles. Besides examining the Adidas Company marketing strategy, this report will look at modern strategies that the company can utilise to expand its international markets.
Effective marketing planning process
Companies in all industries require marketing plans to succeed. Effective marketing planning process offers companies guidelines on how to market and trade their new products in the market within a specific period. The marketing plans guides the company in choosing an appropriate target market and then fulfill the customer needs in that segment. Moreover, the marketing planning process establishes the promotional strategies that can boost the sales volume of the company products.
The Adidas Company is an international corporation that designs and fabricates sports shoes, outfits, and accessories. The company is a leading sportswear in Europe and the global market. The Adidas Company has adopted a three divisional structure for its Adidas brand. The divisions include sport performance, sport heritage, and sport style. The adidas sport performance division centers on novelty, functionality, and design.
Furthermore, the division designs products for sports performance market, but have design appeal that pushes the consumers to wear the products off the playing field. The adidas sport heritage division includes adidas original products that aim to expand the exclusive and valid heritage of adidas to the lifestyle market. The sport style division is a fashionable assortment that consists of men’s and women’s shoes, clothing, and accessories.
The division targets young consumers who are looking for fashion-oriented sportswear products. The three divisional structures assist the Adidas Company to design and market innovative products, which satisfies the needs of varied customers. The Adidas has introduced new products like X 15 and Ace 15. X 15 is designed for players who control and bringing order to a chaotic game, while Ace 15 is designed for players who cannot be controlled.
Therefore, the Adidas Company requires an effective marketing planning process that would establish a target market for its new products and formulate plans of marketing its products and fulfilling the needs of that market. The marketing planning process is achieved through five fundamental steps. The five steps include objective and goal setting, assessing organisational resources, evaluating risks and opportunities, developing marketing strategy, and implementing and monitoring marketing plans (Adidas 2016).
Objective and goal setting
This initial stage of marketing planning process includes setting of goals and objectives the company wants to achieve. The company should link the marketing plan with its mission statement and determine the primary target audience. Moreover, the company should establish the profit margin it wants to achieve after implementation of the marketing plans (Social care institutes for excellence 2013).
The Adidas Company has developed a global brand in sporting products industry by designing quality new products that seeks to fulfill the expectations of customers. The Adidas Company has developed objectives that will assist the company to expand the global market of its new products. The company objectives include market penetration, which would aid in attaining market share in the global markets that the company competes.
The market development objective will enable the company to capture new business markets and respond to the needs of customer segments. In addition, the product awareness objective would offer visibility and realization of the company new products. The company objectives conform to its mission statement that states that the Adidas Company endeavor to be the global leader in sporting products industry with brands built on passion for sports and a sporting lifestyle (Chartered Management Institute 2015).
Assessing organisational resources
Marketing plans are influenced by internal factors, such as organisational resources. The organisational resources include capacity in manufacturing, advertising, finance, and technology. Assessment of these resources will enable organisations to locate their strengths and limitations. Strengths aid organisations to develop objectives, establish plans for accomplishing objectives, and gain from marketing opportunities. On the other hand, resource limitation might hold back an organization from benefitting on marketing opportunities (MLF4 2012).
The Adidas Company has several strengths that assist it to achieve its objectives. The company has strong financial position that is attributed to its several stores around the globe that make the company to achieve a profit of billions of dollars annually. The company trades its products from company owned stores, online stores, and supermarket stores. The effective distribution system enables the company new products to be available through diverse channels. The Adidas Company has increased consciousness of its new products through supporting major sports organisations, such as UEFA, NBA, world cup, and Olympics. The Adidas Company has uitilised YouTube to create videos that promote consciousness of its new products. Moreover, Adidas created videos that used David Beckham to promote its new products X 15 and Ace 15 (Nadeau et al. 2015).
However, the company has some limitations that prevent it from taking advantage of marketing opportunities. The company faces a risk of over dependency on outsourcing. The Adidas Company has subcontracted a bigger percentage of its production to third party manufacturers, such as Asia to benefit from easy accessibility of raw materials and fair labour cost. The premium prices of X 15 and Ace 15 sporting shoes due to inventive technology and manufacturing techniques have made the products exorbitant to deprived customers, particularly in developing countries (Adidas 2015).
Evaluating risks and opportunities
Nevertheless, the company has myriad of opportunities that will aid in fulfilling its marketing plans. The shifting lifestyle, taste, and preferences of rising economies have increased demand of premium brands. Furthermore, the company can extend its product line that will unlock new opportunities and attain an edge over its rivals through differentiation. In addition, the Adidas Company can integrate backwards that will aid in protecting their patent rights and combine their research and development division with the operational division in order to enhance brands innovation and development (Teach a man to fish 2014).
Nonetheless, the Adidas Company faces threats that might influence its marketing plans. Despite Adidas being a global brand, it still faces strong competition from other premium brands, such as Nike. Moreover, local companies and substitutes provide standard competition to Adidas brands. The over dependency on outsourcing its production has made supplier to have more bargaining power than the company (Institute of Risk management 2013).
Developing marketing strategy
Marketing strategy assist organisations to win market shares and converse to target market the advantages and aspects of a new product. Furthermore, the marketing strategy communicate the general value to their customers (Planning effective marketing strategies 2013).
The Adidas Company utilizes online marketing and other promotion campaigns to communicate their legacy of innovation and technology to customers. The company uses celebrities in its online marketing. Adidas use players like Mesut Ozil to promote its Ace 15 sporting shoes. Adidas argues that Ace 15 is built to control and suited to players like Mesut who bring order to a chaotic game. On the other hand, Adidas use players like Gareth Bale to promote its X 15 sporting shoes. The X 15 is built to give thorough traction to energetic and agile players in the world. The Adidas has adopted sports marketing through sponsoring sporting events that offer many opportunities to the company, such as new products promotion and brand consciousness. In addition, the Adidas utilises search engine optimization (SEO) tools to optimize its website by considering the key words used by people in search engines. The strategy has generated high consumer traffic for Adidas. Furthermore, Adidas place banner advertisements on other webpage that has promoted awareness of its new products (Khankaew et al. 2015).
Implementing and monitoring marketing plans
After developing the marketing plans, organisation follow the steps outlined in the plan towards achieving the stated objectives. The organisation provides continuous assessment to evaluate whether adopted strategies are achieving the objectives and goals. The Adidas Company stresses flexibility when implementing their marketing plans. The environmental opportunities and threats might not match with the company expectations. Shift in consumer demand, extension of distribution channels, and changes of supply costs might influence the outcomes, thus should be included into the monitoring of the plan (MLF4 2012).
Needs and techniques for controlling marketing activities
For Adidas Company to effectively control its marketing activities should adopt control systems that provide standards for assessing performance in each division of marketing. The outcomes of marketing departments, such as interactive advertising and marketing research department cannot be evaluated by similar standard because they are not similar. Hence, Adidas should implement control system that has matching standard for each department.
Furthermore, effective control system should be able to discover variation and report them to the management. The control system should also recommend possible remedies that can correct the deviations. In addition, the control system should be easily understandable by employees and cost-effective to the organisation. A control system that is customized to Adidas specifications provides comprehensive information that is significant to the company line of business (Adidas 2015).
Annual plan control
Annual plan control assists Adidas to evaluate its current marketing activities and outcomes to ensure that the yearly sales and profit objectives are attained. The annual plan control detects any variations on the performance of its X 15 and Ace 15 products and suggests possible corrective actions. The annual plan control utilizes tools, such as sales analysis, market share analysis, market expense analysis, and financial analysis to evaluate marketing activities and detect any deviations (Adidas 2015).
Profitability control
Profitability control helps Adidas Company to establish the definite profitability of its X 15 and Ace 15 products, market segments, and distribution channels. The information generated from profitability control will influence the company decision on extension, reduction, or deferment of its marketing activities.
The profitability control will identify the functional expenditure, allocate the functional expenditure to the marketing entities, and prepare income statement for every marketing entity. Therefore, the profitability rely on the of sales and marketing cost analysis in determining the profitability and expenditure of the marketing entities (Adidas 2015).
Efficiency control
The efficiency control aids the Adidas Company to enhance the effectiveness of its marketing activities, such as video marketing, network marketing, and blogging. The efficiency control assesses and reduces the marketing expenses of the marketing activities. Efficiency and profitability control are closely connected. Higher profits signify efficient management of the marketing activities (Adidas 2015).
Strategic control
The strategic control ensures that Adidas marketing objectives and strategies are suited to the present and predicted marketing environment. Furthermore, the strategic control will evaluate if the company is pursuing the opportunities presented by the distribution channels, products, and markets. T
he company management should continuously utilize the strategic control because the continuously shift in marketing environment might render the company objectives, strategies, and policies obsolete. Moreover, the strategic control examine the company marketing efficiency by employing tools, such as marketing audit and marketing effectiveness ranking appraisal (Adidas 2015).
Contemporary marketing techniques and their use in Global and International markets
Companies seek to expand their market share by venturing into global markets that are unsaturated and that offer the companies with several growth opportunities. Companies use contemporary marketing techniques to promote their new products in international markets. Most companies recognize they have limited markets when they concentrate in their local markets.
Hence, companies respond by looking international opportunities to raise their market share and customer base. The emergence of technology that crosses both cultural and national boarders presents the companies with the opportunity of utilizing technology to promote their products in global markets.
Moreover, the technology has resulted to development of contemporary marketing techniques, such as email marketing, social media, blogs, and public relation marketing that aid companies to market in global and international markets. Adidas Company has responded to customer migration to online world by embracing email marketing to promote its new products. Adidas utilizes email marketing to connect with current and prospective customers (Direct Marketing Association 2014).
Public relation marketing increases the awareness of the new products offered by Adidas and advances the company reputation in the media. The public relation marketing also publicizes new products introduced to the market by the company. The PR is responsible of writing press releases, newsletters, and speaking about the organisation in public meetings, which help in promoting the image of the company (Introduction to Public Relation 2012).
Social media sites, such as face book, and twitter offer Adidas exclusive opportunity to interact with customers and promote its new products. Adidas has utilized social media networks to increase consciousness of its new products, X 15 and Ace 15.In addition, studies suggest that companies who participate in social media platforms and mobile marketing enjoy higher loyalty from their customers.
Moreover, Adidas has embraced mobile marketing by acquiring an Australian fitness app maker, Runtastic. The app maker have over 130 million downloads and 75 million registered members globally, and is offered in 17 languages, thus giving Adidas a platform to market and promote its new products (Mobile Marketing Association 2014).
Adidas has shifted its bulk of its marketing budget into online marketing through focusing on instantaneous content and online video. The company has developed Adidas’ digital newsroom that aid in promotion of its new products. The brand newsroom aid the company to create quality contents that is unique and form emotions. Furthermore, the digital newsrooms create content that is tailored to its audience and it is delivered promptly and to the accurate standards (Adidas 2015).
Marketing manager skills and their role in the effective management of the marketing team
Technology advancement has altered the role of marketing to a point that the duties of present marketing managers vary significantly from those of some years ago. Nowadays marketing managers should understand how trends, technology, and social media work in the marketing mix. However, there are essential skills that marketing manager must possess to enhance their management and performance of marketing roles.
The Adidas Company success greatly depends on the effective management of its marketing managers to devise strategies that enhance new products promotion and increase sales. The marketing manager should possess excellent communication skills and create open and operating channels of communication. Strategic thinking is a vital skill that assists marketing managers to reflect and solve challenges with exceptional perspectives.
Furthermore, the marketing manager is able to make decisions based on long-term viewpoint and recognize how to handle the exclusive needs of each member participating in the project. The marketing managers are faced with the need to handle challenges from clients, team members, and the management. Excellent problem solving skills enable the marketing manager to handle swiftly the challenges from the three stakeholders.
In addition, the marketing managers are required to hone their project management skills to guide their teams in realizing their objectives and taking advantage of social media opportunities (National careers Service 2012).
Marketing managers play a vital role in providing effective management to their marketing teams. The marketing managers develop departmental targets and individualize them for each departmental staff. Moreover, they demonstrate how the individual targets would assist the department and the organisation as whole.
The marketing managers also identify the distinctive behavior of the team members and encourage them to achieve their targets by utilizing their unique traits. In addition, the marketing managers conduct performance appraisal of their marketing teams and congratulate them in departmental meetings when their transitional targets are achieved. This strengthens the significance on their individual capacities (National careers Service 2012).
Impact and value of a brand from a number of different stakeholder perspectives
Brand equity can enable companies to set premium prices to their products because customers believe that products with famous names are better than products with unrenowned names. Customer-based brand equity results when customers recognize the brand and hold exceptional brand association in their mind. Adidas has positioned itself as a premium brand and customers are willing to pay more for its products. The positive customer-based brand equity has offered Adidas long-term revenues and capability of charging premium prices for its new products (Angulo-ruiz 2014).
Employees play vital role in developing brand equity. Adidas recognizes its employees as major stakeholders in building the value of its brand. Adidas involves their employees in decision-making process and boost their satisfaction in order to attract the best talent that would help in designing new products. In addition, suppliers aid companies to have excellent reputation in the market. The brand equity of the Adidas Company assists in attracting reliable suppliers who might not be willing to render their services to unbranded firms (Cornell University ILR School 2013).
Organisations marketing campaigns in different international markets
The competitive environment prompts companies to develop marketing campaigns that will increase the brand consciousness and sales. However, due to diversity organisations should tailor their marketing campaigns to suit the international audience when expanding to international markets. The Adidas Company has used different marketing campaigns to promote its X 15 and Ace 15 products in different international markets.
The Adidas has promoted its new products in the US market by utilising online marketing that feature top players of National Hockey League (NHL) and National Football League (NFL). Moreover, the company has initiated major basketball marketing campaigns that resulted to a significant increase in its sales. The online purchasing has made it easy for consumers to purchase products directly from manufactures.
Adidas has adopted online purchasing by placing links on other websites like Google homepage that create high consumer traffic to the company website. The links help to promote product awareness to potential consumers. Furthermore, use of SEO tools to optimize the company website has made it visible to new consumers (Tesseras 2014).
The Adidas has used the Chelsea FC’s players and collaborated with the British Paralympics Association to promote its new products in the UK market. This year Adidas launched a marketing campaign dubbed I am here to create that comprised a sequence of films that featured several sporting celebrities. The marketing campaign aired in fifty countries during broadcast of UEFA champion league and the Grammys awards.
In China market, the campaign featured the local players that have the power of influencing the market. The marketing campaign helped to promote the X 15 and Ace 15 sporting shoes that Adidas launched to the market. Adidas has embraced Web public relations (WPR) by placing news of product or service launches on company’s website and review sites for consumers to read. Furthermore, Adidas uses direct e-mail for its online promotion. Both WPR and direct e-mail have helped adidas in promoting its new products to consumers (Department for culture, media, and sport 2012).
Conclusion
A company success is greatly attributed to the effective role played by is marketing function. Adidas effective marketing planning has guided the company to develop business activities that helps in achieving its organisation objectives. Marketing control systems have aided Adidas to assess its marketing activities and offer swift remedies to detected deviations. The Adidas Company has embraced contemporary marketing techniques, such as social media that have significantly enhanced its new products awareness. Furthermore, the Adidas marketing techniques that are tailored to different international markets have been successful in promoting its new products.
Recommendation
Customers are noted to be satisfied with the design and durability of the Adidas products, however in aspects of price; Adidas should design products that are affordable to deprived customers, especially in developing countries. Moreover, the company can provide special offer of price in a certain period to boost its sales and attract more customers. In addition, Adidas should develop more marketing campaigns and techniques that promote and differentiate its brands from competitors.
Online marketing,Top player brand ambassadors,Sponsoring teams
References
Angulo-ruiz, F., Donthu, N., Prior, D. & Rialp, J. (2014) ‘The financial contribution of customer- oriented marketing capability’, Academy of Marketing Science [online] 42 (4), 380-399. Available from [17 October 2016]
Institute of Risk management (2013)A risk management standard [online] available from <https://www.theirm.org/media/886059/ARMS_2002_IRM.pdf> [17 October 2016]Khankaew, C., Ussahawanitichakit, P. & Raksong, S. (2015)A CONCEPTUAL FRAMEWORK OF ALTERNATIVE MARKETING STRATEGY AND MARKETING OUTCOMES‘Allied Academies International Conference’ Academy of Marketing Studies [online] 20(2), pp. 1-16
Mobile Marketing Association (2014) ‘MMA and adidas publish The Mobile Marketing Playbook to Drive Global Marketing Efforts’Marketing WeeklyNews [online], pp. 179
Nadeau, J., O’Reilly, N. & Heslop, L.A. (2015) ‘Cityscape promotions and the use of place images at the Olympic Games’Marketing Intelligence & Planning[online] 33(2), pp.147
Planning effective marketing strategies for a target audience– Adidas (2013) Business Case Studies LLP, London [online] available [17 October 2016]
During this era of digital advertising, podcasting has undoubtedly become a substantial channel through which consumption of digital content take place (McNurlin, 2009). An example of using a podcast as an advertising tool include the use of Apple iTunes app through which advertisers can upload their promotional media clips that are viewed by subscribers as they stream their preferred digital content (O’Brien, 2013).
The possible revenue model of podcasting would be through subscriptions whereby a fee is paid, and the difference between podcast and traditional advertising is that the former is based of digital content consumptions (McKeen & Smith, 2014). Some examples of mobile applications possible for use in podcasting include Apple iTunes app, Oracle, IBM among others.
Podcasts allows brands to communicate to a captive audience. With lifestyle on-the-go, the power to have the podcasting on demand allows companies and brands tell their story anywhere at any time, which helps to establish authority in your industry and create advocates brand along the way.
You can use podcasts to assume a greater engagement to your current and potential customers, providing an email address associated with the podcast where people can respond directly to the content. This will also give you material for new content. In the next episode you can answer questions or deal with the feedback you received.
References
McKeen, J. D. & Smith, H. A. (2014). Making IT Happen: Critical Issues in IT Management, Wiley Series in Information Systems. New York, NY: Prentice Hall.
McNurlin, B. (2009). Information Systems Management in Practice (8th ed.). New York, NY: Prentice Hall.
O’Brien, J. (2013). Management Information Systems: Managing Information Technology in the Internetworked Enterprise. Boston, MA: Irwin McGraw-Hill. ISBN0-07-112373-3
In the modern world, there exists stiff competition in the global business arena on the perception of the entrepreneurial marketing. Recently, many organizations work in business environments that consist of increased uncertainties, reduced ability to foresee, fluid companies and industries jurisdictions. The competitive advantage has also been featured by the major factors such as contradiction, chaos, complexity, and change. These factors have the significant impact on marketing in an international know-how economy where clients are becoming tougher.
What appears to be apparent to the readers or researchers about the traditional marketing activities is where they are not in a position to opposite for entrepreneurial companies competitiveness amidst antagonism. Therefore, it can be noted that entrepreneurial marketing is view as a paradigm that combines certain aspects of the entrepreneurship and marketing into a comprehensive theory where marketing turn out to be a procedure used by the organizations to conduct themselves entrepreneurially.
There is a developing evidence to sustain the concept that organizations which are competitively advantaged are those which are betrothed like entrepreneurial marketing. That means that the marketing ways that are used by the entrepreneurs show the innovative orientations. The approaches vary in their connection or impact on the enterprise performances.
It becomes severe for a new business to comprehend the entrepreneurial marketing activities to apply and therefore it becomes significant to attain diversity of successful outcome and in due course for increased performances.
Lincoln marketing associates are described as the beehive of marketing operations, and it has been achieving a lot of concentration. Lincoln marketing associates top management and the working staffs use the innovative and creative marketing techniques to compete fairly in the market arena. Therefore the top management together with the workers requires taking on to the cord of conducts that guarantee the growth and application and development of the dimensions of the entrepreneurial marketing strategies.
The idea of entrepreneur marketing appears to have not been paid a lot of attention even if it is considered of great significance factor that counts in the development and extraordinary performances of the entrepreneurial companies. The general objectives of this essay are to discuss into details the dimensions of entrepreneurial marketing strategy.
Problem statement
The diversity in the competitiveness arena inside the marketing business environment has created competition for the companies to be terrible. The urge for an adequate comprehension of the entrepreneurial marketing strategies and the employment to the entrepreneurial organizations has continuously become a subject of vital concern to many researchers, employees and entrepreneurs of the business enterprises. The inadequacy of attention paid to the entrepreneurial features such as pro-activity, opportunity recognition and innovative poses a significant challenge to the Lincoln marketing associates.
The entrepreneurial pro-activity is serious to build an edge over the rivals. It entails the capability and the attitude that permits the control and the implementations of services, products or even the processes in front of the principal competitor in the global market within the same industry. On the contrary, entrepreneurial corporations are challenged with continuous dynamic changes in political, social, economic and technology thereby coming up with a congruent requirement to re-plan their entrepreneurial marketing operations to suit the changes.
Entrepreneurs are inclined to adhere with the uncertainties business as chances represent the probability of returns. The pursuit of these returns is challenged by the potential of risk over the underestimated efforts. As companies strive to pursue such chances, the top management of a given company is countenanced by the technical solving tactics, decision-making potentials and the potential to choose the right chances which make sure a competitive edge is higher than that of their principal rival.
The entrepreneurial firms are plagued with the problem of selecting from key projects that will maximize their performances, bearing in mind that not or corporations services or products innovation come to be successful, due to the fact of a high rate of return.
The concept of entrepreneurial marketing
The phrase entrepreneurial marketing comes from two different fields that are used to explain the marketing system of companies pursuing chances in dangerous market conditions always under the limited resources. To comprehend the entrepreneurial marketing, it is vital first to introduce the meaning of the expression entrepreneurship and commercialization.
The established conceptualizations of marketing hearts on the onset of operations which smooth the progress of the exchanged connection. According to the American Marketing Association, “Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.”
Recently, an entrepreneur is becoming heroes in the recessionary period and the capability or the potential to work and develop an enterprise in an uncertain business environment which is of greater significance to the community. On the other hand, the term entrepreneurship is defined as the “process of creating value by bringing together a unique package of resources to exploit an opportunity.”
The system entails the set of operations that are essential to identify a chance, describe a business idea, look into the required resources, get those resources and control and reap the business.
The theory of entrepreneurial marketing explains the principles, tactics, and cord of conduct of an entrepreneur in addressing their problems and looking for business chances. It shows various ways to envisaging the venture by itself, its linkage with the marketing place and the purpose of the marketing functions inside the company or as a plan entrepreneurial pose or cord of conduct in marketing that is characterized by corporations.
Enterprises work in business environment represented by high uncertainties and low probability of forecasting categories of forces such as contradiction, complexity, change and chaos. Entrepreneurial marketing is defined as the “effectual actions or the adaptations of marketing theory for the unique needs of the firms.” The valid activities sited address many marketing issues simultaneously. These problems include resource constraints, risk, innovation, and opportunities.
Dimensions of entrepreneurial marketing strategy
Pro-Activeness
Researchers have argued that the pro-activity is an original cord of conduct built which shoe a relatively firm propensity to impact the business environmental changes. Other says that the pro-activity have a positive effect on a person as well as an enterprise performance.
The pro-activity helps the owner and the managers to be able to define their organizational objectives and their vision and the mission statement they will use to enable them to attain their strategic objectives. Therefore, Pro-Activity can be explained as a state of thought and will be broadly be driven by an individual perception to maintain the organization’s mission, vision and to attain the planned goal, (Hooi, Ahmad, Amran, and Rahman, 2016)
It is imagined that the vision towards the formulation of the strategic restriction for recreating, impacting and influencing the nature of which they work in line with their foreseeable future. The entrepreneurial pro-activeness can also be viewed as the awareness of the firm. Scholars suggest that the entrepreneurial pro-activeness does not continue living or have to turn out to be unsuspected to rich clients and where the new process of processing that may be unidentified to other tend to be practicable.
Pro-activeness portrays the entrepreneurial enthusiasm to control competition by combining the aggressive and proactive moves. For example by establishing new services or product ahead of the competitors and working in the imaginations of the forecasted demand so as to build change and shape the nature of doing business. Furthermore, encompassing proactive orientations entails the satisfactory and the discovery of the unarticulated requirements of clients by gathering them and the competitor based data.
The dimension of pro-activeness is stated to show the top management orientation in following improved competitiveness, and it entails the risk-taking, initiative, boldness, and the competitive aggressiveness. The pro-activeness portrays a stable active connection with the performance.
The entrepreneurial pro-activeness is not enough for it to be associated to the know-how of organizing the transformation of inputs to output for making sure that high performance is recorded. It makes the entrepreneurs look into the past, present and the future with same passion, using the historical pattern to describe and fully comprehend the present and to confront and build its own pro-active in future.
Pro-activeness is creating change, initiative taking, achievement oriented, foreseeing the evolution towards a serious condition and early preparation before the emergence of short risks. It reveals itself by the activities in the creation of the “stated belief” and the implantations of individual’s attitudes.
The tendency of the pro-active offer a company the potential to imagine the changes or the requirements in the market arena and be amidst the first to operate on them and the first to apply it is assured of excellence performance.
Opportunity recognition
The concept of entrepreneurial marketing stress on takings on the chances regardless of the resources available. Chances portray themselves unnoticed to the market positions which are capable for the sustainment of profit potentials. Pursuit and recognition of opportunity are marketing operations significant to the success of a company. Marketability is estimated by the degree of firmness which links to the abilities and resources of the business.
It is the firm tendency to show the best opportunity that establishes success, (Shane, and Nicolaou, 2015). Even if the opportunity may come randomly, the entrepreneurial marketers have the propensity to survey for new chances proactively. Being pro-active and having the willingness to be lead the way allows the entrepreneurial companies to serve the unsatisfied requirements and take gain of upcoming chances before the competitors.
Creativity and innovation are vital tools that help the entrepreneur’s companies to change opportunity onto the reality. Chances pay a fundamental role in the company’s ability to choose the best opportunity that establishes success, (Maine, Soh,. and Dos Santos, 2015). Opportunities are viewed as a goal phenomenon which exist sovereignty of the entrepreneur and as such be inherent in a flowing exposure that is outside the entrepreneur awaiting exploitation and discovery.
It is suggested that a firm market knows how establishes whether the innovation is employed at best era, under little idea perceptions. The marketing know-how provides as a restriction, stopping the companies from extravagating resources in vain. Also, it allows the organization to take the best of its time, direct the firm towards its success.
The availability of the chances is likely to show a relationship between the rates of the changing business environment, indicating the demand for the marketing personnel to connect in heightened categories of both actions for the discovery and search. Moreover, the exploitations of the chances include the continuous adaptations and the learning by the marketing staffs prior, during and after the formal employment of the innovative ideas.
Opportunities portray unidentified marketing positions which are the sources of sustainable income potentials. They are consequential from the market imperfection, where the know-how relating to the defect and how to take advantage of them are differentiating the entrepreneurial marketing.
Innovation
The concept of entrepreneurial marketing is found in the ideas and the innovation development that are linked to the intuitive comprehension of the market demands. It can promote the essential core competencies for a proactive company that finds innovative ways for the clients. Innovativeness is explained to the dynamic organizations that discover new chances rather than just make the most of the recent strengths. Therefore, it seems necessary to an innovative effort that is capable of expanding the customer’s wants, (Boso, Cadogan, and Story, 2012)
Scholars have argued that innovativeness entails promoting the spirit of supporting research, creativity, development, establishment of new product and services, technological leadership, experimentations and developing new processes. An innovation-oriented marketing operation helps the company to aim at concepts that lead to new processes, products, and markets.
The degree to which flourishing the companies places innovation in its marketing operations can grow from highly innovative new market know-how. Companies may select to aim at the original lines of marketing since the organization may not have the asset to attain or sustain the industry requirements. An entrepreneur shows a general openness to the introduction, and they also portray a single domain in the research that compares entrepreneurial marketing, corporate marketing, and the traditional marketing.
It can be said that, in the scenario of the entrepreneurs, the marketing plans take over from the traditional marketing ideas by the innovation shown by the entrepreneurs of today, flexibility, and creativity, (Pahnke, McDonald, Wang, and Hallen, 2015)
Innovation consists of positive technical knowhow concerning how matters can be done better that the previous state of creativity. Being innovative will assist the companies to increase new ventures and sole proprietorships opportunities and successfully finalize in a changeover economy. It helps firms determine a leading competitive position and can have enough money to a new venture and change to receive an edge in the market.
Firms that sustain the culture of innovation have a higher probability to maintain a competitive market and dynamic in a way that it is by an intuitive comprehension of the marketing demands. Creativity and innovations are conditions intrinsic in the purpose of the entrepreneurship and show a company needs to improve techniques which may impact in the establishment of products, technological systems, and processes.
Scholars argue that innovativeness has to turn out to be a pre-requisite for an organization’s core competencies and survival. It seems specifically significance to SMEs with limited assets. Innovativeness is a significant determinant of a company’s performances.
Calculated risk taking
The authority of risk taking entails the willingness to use the substantial asset for exploiting the chances by using business plans based on the effects which may vary with risk. Companies which have taken on the entrepreneurial marketing develop the calculated take, rational and weigh uncertainties, (Lückenbach, Baumgarth, Schmidt, and Henseler, 2016)
Companies that have taken on the entrepreneurial marketing developments are not speculators but are risk takers who comprehend that the innovation in the current technological, social and economic environment is intrinsic unsure and needs the rational laying a bet on the long shots. One technique for managing risks is to operate in coalition with other groups, that the companies thought will offer the complimentary potential and assist tilting the loss to other people.
Customer intensity
The dimension of client’s strength creates on what is seen as the driving factor of marketing in the corporation. The client-centric-orientation applies the innovative manner to build and maintains the customer based relationship, (Lechner, and Gudmundsson, 2014).Some of the researched studies explains that the organization successes are which placed on a greater stressing of the customer intensity. On the contrary, it has additionally opts those extreme clients orientations might slow down the burst through of the innovation which builds markets and disrupt equality.
It is because the fundamental changes are out in front of the client. Customer orientation has its base in introductory services marketing text in that the significance of customer focused workers was a physical sign of quality for the company and its services. Since then, the ideology of customer orientation inside the company has been examined by various researchers and authors. Indeed, some of them see the client directions as the “pillar of marketing,” (Anning-Dorson, 2016)
Value creation
The optimal point of the entrepreneurial marketing is the innovative value creation. It is assumed that the value creation is the precondition for the relationship and transactions. The work of the marketing workers or the marketers is to find out the unused resources of the client value and to build a first integration or asset to bring into being value, (Amit, and Zott, 2012).
It is because, the paramount ability to see and utilize chances is argued that the companies that take on the entrepreneurial marketing system are well able to recognize good-looking entrepreneurial prospects and use them by leveraging innovation to improve the sacrificed merits and reduce the sacrificed costs that result in paramount value for the client, (Dess, Lumpkin, and Eisner, 2014).
Resource leveraging
The primary challenges that occur for the new business as far as marketing is concerned are the limited of personal and financial resources. The insufficiency requires a thorough monitoring of the marketing expenditures and constrains the intensity and the range of marketing operations within the new business that can be pursued, (Hallbäck, and Gabrielsson, 2013).
The entrepreneurs can deal with this challenge by trying to attain additional assets like the bank’s loans, venture capital, and trying to meet the optimal impact of the limited resources. Two approaches can be reviewed on how to deal with the scarcity of the resources. The first one is the strategies and techniques that are used to minimize the amount of asset used for a given marketing operation.
They entail; strategies for creating a coalition with other firms and the free rising plan. The second ones are the strategies and methods that need only a few assets yet assure to regenerate higher return in the marketing arena. They include step by step development plan, adoption of a niching strategy, low-cost guerilla methods in marketing, (Becherer, and Helms, 2016)
Implications of the findings
The study has shown that the entrepreneurial marketing is a multi- dimensional assembly whose features have an important, optimistic power on the greater performance of the Lincoln marketing associates. The essays portray that the seven dimensions of the entrepreneurial marketing strategies that is the resource leveraging, value creation, customer intensity, risk taking, innovation, opportunity recognition, and the pro-activeness by the Lincoln marketing associates will improve the performance.
Moreover, the essay confirmed that the entrepreneurial pro-activeness is the fundamental driving factor to attain the core competencies. The aggressive steps and system by the establishment of the new products or services ahead of the key rivals determines the core competencies firm exposure to other companies within the same industry, (Franco, and Haase, 2013)
Additionally, the entrepreneurial company’s pursuit and recognition of the chances are the marketing operations that are significant to the performance. Therefore going by the latent marketing chances by looking innovative explanations to improve core competencies. A chance of a company aims at the capability to choose the good chances to establish success. Thus the Lincoln marketing associates chances recognition potential has an enthusiasm result on the performances, (Alegre, and Chiva, 2013)
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