[90] Strategic Marketing in Visual Studio .NET

Printer Code 39 in Visual Studio .NET [90] Strategic Marketing
[90] Strategic Marketing
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will do or will happen The strong element of opinion and subjectivity reduces their value to the organization Test marketing is designed for new product markets It is of little value in established or mature markets A new product introduced into a mature market is unlikely to make a change in overall market sales suf ciently signi cant to be detected in a test market Another weakness of test marketing is that their results are highly susceptible to interference by competitor activity in the test area during the test Competitors frequently attempt to spoil test markets by introducing temporary deals, price discounts or other tactical changes in their marketing mixes with the objective of confusing the testing organization s research results
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Quality and cost of information
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The quality of the information available to the organization may be evaluated on the basis of: relevance accuracy timeliness compatibility cost Secondary sources of data usually provide information which is of limited value since it is collected and prepared for a wide audience with wide needs Such data may be irrelevant to the task There may also be a statutory reason for collecting it in the rst place making it unlikely that the results would have speci c and precise commercial value Before engaging in a detailed search of such sources, the organization should determine the potential usefulness of the data Accuracy is an issue which arises in connection with sampling and methods of collection Incorrect sampling procedures tend to generate the wrong type of data Defective administration of the data collection task can also reduce accuracy It is also necessary to judge the objectivity of the supplier of the data Timeliness refers to the currency of the data used Large changes in the environment between the collection time and use mean that the data are unlikely to be timely Generally the organization is interested in making comparisons of one period with another, a product with that of a competitor, one market with another The issue of compatibility frequently arises especially when dealing with secondary sources of data Statistics collected in different years may not be comparable because different categories are involved or de nitions change
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Obtaining customer information [91]
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Each of these factors gives rise to compatibility problems Furthermore, the data required are frequently not available The organization faces the cost of data collection, analysis, storage and interpretation Frequently, there is a signi cant cost of organizing the data so that it can be used Updating the data, adding names and pieces of data and discarding old data also costs money which must be borne by the organization This is the context in which the organization must evaluate the relevance of the information available
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References
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Davenport, Thomas H, Harris, Jeanne G and Kohli, Ajay K (2001a), How do they know their customers so well , Sloan Management Review, 42 (2), 63 73 Davenport, Thomas H, Harris, Jeanne G, De Long, David W and Jacobson, Alvin L (2001b), Data to knowledge to results: building analytic capability , California Management Review, 43 (2), 117 38 Oxenfeldt, Alfred R and Moore, William L (1978), Customer or competitor: which guideline for marketing , Management Review (August), 43 8 Ulwick, Anthony W (2002), Turn customer input into innovation , Harvard Business Review, 80 (1), 91 7
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Competition in the business system
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A competitor orientation in the business system views customers as the ultimate prize to be won at the expense of rivals A competitor orientation implies that the organization attempts to capitalize on the weaknesses of vulnerable competitors to win market position and customers from them, which in turn produces a high level of sales and long-run pro ts At the same time, the organization attempts to remove its own weaknesses to defend market position and to minimize the loss of customers to competitors The organization attempts to seek those activities in which its performance is superior to that of its competitors In this context it is necessary to determine the various positions competitors hold in the market For each competitor it is necessary to understand what customer segments they focus on and what distinctive product or service bene ts they offer An understanding of their customer focus and strengths show the areas of the market that will be most dif cult to penetrate and also the areas of the market that are not being serviced adequately How competitors typically respond to changes in the market is something most companies attempt to glean from observation and other sources Competition in the business system has been de ned as the constant struggle among rms for comparative advantages in resources that will yield marketplace positions of competitive advantage for some market segment(s) and, thereby superior nancial performance (Hunt 2000) Many companies have predictable management styles which in uence or even determine how they react in a particular situation Elements of predictable management styles include the competitor s record on innovation and imitation Some competitors match innovations very quickly through innovations of their own or imitate the success of others Other competitors may be classi ed as price leaders or price followers Understanding these patterns of competitive behaviour helps the organization to formulate a marketing strategy
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Competition in the business system [93]
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