Social media is seen by many marketers as the next gold rush. Like any business, the media industry evolves in cycles. In the past, there have been few job openings at media companies but now as content converges and more media companies are looking for ways to branch out and reach larger population bases there is an increase in the availability of highly coveted marketing positions.

However, the availability of new technologies and new developments in the media industry have created a demand for new kinds of experience, cultural knowledge and skills sets that candidates must be aware of if they wish for such a position.

If you are pondering starting social media marketing, these findings will help push you over the edge.  If you’re already onboard, feel free to examine what the really experienced marketers are doing.

When searching for a marketing position in the media industry it is important to know that the industry is highly heterogeneous. Marketers should also be aware of the competition that they will face when pursuing a position at a media company. Typically, marketers must have a plethora of solid experience and a vast understanding of the media industry and the specific changes impacting the industry they are looking to work in. Marketers should already be familiar with how to communicate their messages across a variety of mediums and how to connect with a large customer base.

Social marketing requires so many processes going on at once that it can quickly become overwhelming. It’s no wonder that things can slip through the cracks.

5 Simple Things Most Social Media Marketers Forget To Do

Set Goals

It’s amazing how many campaigns are run without a set goal. Marketers understand that social media is interacting with consumers but forget they need goals to track success. The goal doesn’t need to be a sales figure, it could be something as simple as number of @ replies on Twitter or Facebook fans. By analyzing your current standing, your goal and your % change you can decide what has been working and what not. Without these numbers you can neither optimize your campaign nor determine success.

Link Profiles

Linking your social media profiles to a hub and each other is a simple and effective way to build a community throughout your network. By making it easy for consumers to find the brand profiles you will remove an obstacle for them to join the community. Giving consumers multiple ways to connect with the brand increase the likelihood.

Use Multimedia

The web has evolved to go beyond just textual content to include images and videos. Leaving out this section of content means, disregarding a large section of consumers.

Listen Intently

When engaging in social media, 60% of your time should be spent listening to the industry and mentions of your brand. Only 40% of your time should be spent actually interacting with consumers. Here listening means actively tracking conversation and reading mentions. Just knowing that they exist is not enough; you need to know what they’re talking about, how they talk and what the trend is.

Have Fun

One of the forgotten, yet most important aspect of social media is to have fun. Brands forget that they’re engaging consumers talking to them instead of broadcasting a message. By having a good time yourself and staying upbeat consumers enjoy interacting with you. The brand must set the mood for the engagement, just like in offline relationships, online consumers will take cues from the brand on how the interaction should occur.

Remembering these 5 strategies can help make your social campaign a success. These may be easy to forget, but are extremely effective.

By Joshua Feinberg

Are you starting a computer-related business and you’re not sure how to build a solid computer marketing plan?

When you first start out marketing your business, you need to make sure you know exactly which type of small business owners you are trying to reach and come up with a targeted marketing message. This means you need to think about the characteristics of your ideal prospective clients and figure out how you can best reach them.

If you are just getting started, you might feel overwhelmed when you realize there are as many as 30 computer marketing tasks you can do as a business owner. You should make a list of all the possibilities and then find four or five that appeal to you most.

The main thing to remember is that you must diversify. Never put all of your eggs in one basket. You should always have a few different computer marketing campaigns running at all times.

The following 3 tips can help you design a computer marketing plan that will work with your unique business and bring you the best prospects, customers and clients.

Consider Your Many Computer Marketing Options. Think about which marketing strategies you can use and consider how they would work to grow your specific business.

Some of the tactics to consider include outbound telemarketing; targeted direct postcard or letter mailings where you send a set number of postcards/letters to a targeted group and do a follow-up a few weeks later; B2B trade shows in your area; expos or industry events; organizational marketing; seminars you host yourself or co-host with trusted business advisers or partners.

There are many other creative options you can select, so think about how you can best reach your target audience.

Diversify and Track Your Marketing Campaigns. One of the most important characteristics of a great computer marketing plan is that it is diverse. Again, never spend your entire annual marketing budget on a single campaign. You want to hit different areas and then figure out a way you can track and measure what you’re doing. Figure out how much time and money you are investing in each campaign and which type of leads you are getting as a direct result of your investment.

Basically, you need to figure out which marketing strategies work and which do not so you can do more of those that are working and eliminate what just isn’t bringing in business.

Evaluate Your Marketing Results Each Quarter. No matter which computer marketing strategies and campaigns you choose, you need to give each one a chance to generate results. This means that, in most cases, you need stick with each campaign for at least two to three months to see how it develops. Once the quarter is over, stick with the campaigns that worked and abandon those that did not.

Then add a couple new campaigns to the mix, so that you’re constantly testing out new client-attraction strategies. Remember that marketing is an on-going, evolutionary process that will be refined over time.

In this article, we talked about 3 ways to build a solid client list. Learn more about how you can get steady, high-paying clients now at http://www.ComputerMarketingSecrets.com

Copyright (C), ComputerMarketingSecrets.com, All Rights Reserved.

Learn how your computer consulting business can get more of the best, steady, high-paying clients in your area. Sign-up now for free computer consulting business tips, strategies, and best practices from the field-tested, proven [http://www.computerconsultingkit.net]Computer Consulting Kit Home Study
Course.

Article Source: http://EzineArticles.com/?expert=Joshua_Feinberg http://EzineArticles.com/?Computer-Marketing-Secrets-That-Attract-Great-Clients&id=1859926

For many of us, finding the time and commitment to develop an Internet marketing strategy is difficult. There are so many other obligations vying for our attention it is tempting to push strategies to the back burner. Giving into that temptation, however, means putting your business at a disadvantage.

This is because an overall marketing strategy is the compass by which you navigate. As opportunities arise or your business environment changes, the objective and marketing strategies in your plan will point you toward the best action. Without a strategic plan, you risk becoming unfocused in your marketing efforts, resulting in guesses about what might be best for your business.

To be most effective, your Website (as well as other) marketing strategies should be a part of your overall business marketing plan. By aligning online marketing with your offline efforts, you can better achieve overall company objectives. Additionally, you will present a consistent style and message across all points of contact with your target audience.

Your strategic focus will in part be determined by your site’s status. If you already have a site in place, your plan can focus strictly on marketing issues. In other words, how to most effectively market using your existing site.

Read complete article here

Author: TJ Philpott

Most anyone that experiences any measurable sales success online usually uses one than one marketing strategy to both promote their products and generate traffic.   A particular method growing in popularity is blog marketing. Due to the relative ease of setting up and maintaining a blog many are coming to realize the effectiveness blogging can have as part of their overall strategic marketing plan. 

This particular platform can not only be used as a method to generate website traffic for other sites of yours in which products are offered for sale but can also generate profits directly from the blog itself. Thru the proper placement of banner ads that are consistent with your blog theme you can earn money every time a visitor clicks on one of these ads.

Careful thou not to clutter your blog up with too many ads since the appearance will be unappealing and the affect on your visitors will be overwhelming causing them to unsubscribe.   Remember your blog is for the use and enjoyment of your visitors first, and for you to earn a profit second.   By maintaining your blog correctly you can tremendously boost your internet presence while also helping to develop your reputation as an authority figure within your niche.

Frequent posts to your blog with useful and interesting content for the readers is one sure way to generate website traffic from visitors who return.  Another neat aspect of blogging is there’s always other blogs within your niche and/or community that you can visit for ideas and camaraderie. By interacting with these other blogs is yet another way to boost your presence within the niche. Due to the ability to leave comments when visiting a blog enables you to also leave a link back to your blog in your signature file. This opens the door to additional traffic back to your site.

Be sure to participate in a positive fashion by leaving only constructive and appropriate comments.   Don’t leave comments just for the sake of leaving your signature file for this will be noticed thereby making future comments unwelcomed and tarnishing your reputation within your niche.  If you want to market products directly off your blog be sure your content is not devoted exclusively to selling.

You want your readers to feel comfortable when they visit and not expecting to get continuously ‘hammered’ by different sales pitches all the time. Trust me, they’ll leave your site never to return!  If used correctly within your marketing strategy your blog can be a great ‘gathering’ spot for your readers while also serving as a ‘jump point’ to other sites you may want your visitors to see. As a rule you don’t want to be too pushy with any sales efforts on the blog. Leave that aggressiveness for other web pages you have dedicated to that purpose.

Article Source: http://www.articlesbase.com/blogging-articles/blogging-enhances-your-marketing-strategy-549129.html

About the Author:
TJ Philpott is an author and Internet entrepreneur based out of North Carolina.
For additional success tips and a free guide that demonstrates how to find both profitable markets and products visit:  http://blogbrawn.com/

Author: Marketing Answers

The return on investment for the engagement of MJH Group for   Small business marketing   is based on the following;
Business Growth

• Increased sales and profit from effective strategy and campaign outcomes

Marketing Strategy
• The insight and direction provided by our strategic recommendations
• Provision of a documented strategic marketing plan which acts as the blue print for the successful marketing of your business
• Allowing you to proceed with confidence
• A planned and structured approach to marketing success

Campaign Outcomes
• Effective communication of your brand and offer
• Generate awareness in the market to achieve
• New customer acquisition
• A greater share of wallet from existing customers
• Increased sales and business growth

Commercialisation
• Assess the viability of new products or services
• Develop and implement strategies for the introduction or relaunch of products and services to provide commercial success

Direct Bottom Line Savings
• Direct Bottom Line Savings due to effective marketing management
• Measuring the ROI of promotions and campaigns to determine effectiveness
• Customer focus reducing the risk of ineffective promotion or campaigns
• Redirection of marketing investment into areas with the greatest return

Effective Brand Management
• Long term business growth through the ongoing and positive development of your brand in the marketplace

Effective Positioning
• Identifying the positioning strategy and building a strong market position to insulate against competition and the threat of new entrants
• Maintaining the desired position of your business in the market place

Communication
• Effective communication via regular meetings and easy to follow project plans to ensure you are kept informed and up to date on the progress of activities throughout the life of the program

Peace of Mind
• Experienced marketing professionals providing peace of mind that the marketing program is taken care of: you have one less thing to worry about
• MJH Group is transparent in our selection of clients to ensure no conflict of interest during engagements
• A marketing resource dedicated to the growth and development of your business.

For more details visit our site:
http://www.marketinganswers.com.au/

Article Source: http://www.articlesbase.com/marketing-tips-articles/small-business-marketing-enjoy-clear-direction-peace-of-mind-525836.html

About the Author:
MJH Group Customer Understanding assists companies who want to improve customer relationships and find opportunities for business growth in the customer and prospect base.

Author: Lisa Nirell

Want to determine whether your marketing strategy deserves an “extreme makeover” or not? Here are the top ten clues.

1.  You are frustrated by customers demanding lower prices, and they no longer seem willing to pay extra for your “value added service.”

What makes your product or service unique? Do customers regularly tell you that they are willing to pay extra for this? If price or the ever-vague “good customer service” are the only differentiators, it is likely your product has become a commodity.

2.  Customers are choosing an alternative solution to satisfy the same need.

If you are losing some of your best customers, quickly determine why the shift is happening. Hiring an independent researcher to interview or survey lost customers is one way to do this. Is the alternative solution easier to use, less time-consuming, or cheaper? Does it appeal to their sense of greed, past relationships, safety, or ethics?

3. Your margins keep shrinking due to rising costs of doing business.

If the key cost drivers in your business model have risen out of proportion to your price increases, it’s probably time to revisit your core offerings.  When was the last time you raised your fees?  If it has been longer than one year, your fees are not keeping pace with inflation.  Announce an increase before 2008—and be happy when the bottom 10% of your clients leave.  They are doing you a favor.

4.  New, innovative companies are entering your market.

Case in point:  the automobile manufacturers once boasted industry dominance in the United States.  Over the last decade, the “big 3” have become “the handicapped 3.”  Toyota and Honda now lead the charge in innovative hybrid fuel cars.  The Big 3 could have adapted, but were wiped out by their lack of innovation and nimbleness.

5.  You are resisting a new industry shift or technology, even when customers are asking for it.

How much do you find yourself digging in your heels with your customers—even when your market is asking you to change?  In 2005, I experienced the perfect illustration of a company’s unwillingness to accept an industry shift while visiting a Mercedes dealer. At the time, I was in the market for a new SUV vehicle. I asked the manager, “What is Mercedes-Benz’s strategy for building alternative fuel vehicles?” It was as if I spoke the unspeakable. The manager firmly replied that they were focusing on fossil fuel technology for many years to come.

Is your company wearing the same blinders? If you can spot the shift early enough, you should be able to make less painful course corrections.

6.  Your key people are married to “the way we have always been doing it.”  You cannot seem to coach them to think otherwise.  Persistent, limiting beliefs are an indicator that a sale or merger is a better option than transitioning to a new model.

If you have multiple locations, and you are unable to detect this behavior first hand, these are signs that your current team is not in a position to strategically transform the business:

•    Customers are demanding that two competitors work together and merge talents, and these companies are unwilling to.

•    The leaders are tolerating major dysfunctional and destructive behavior.

•    The founder or owner needs to create, but has not yet begun, a succession strategy, due to such things as a serious health/personal issue or retirement.

•    The company is unable to meet its goals after several consecutive years.

7.  You believe that strategic thinking and marketing planning is reserved for large, well-established companies.  How many times do you tell yourself “planning and marketing are important, but I am just too busy to do it?”  If this happens daily, that’s a clue that your company’s growth potential is limited.  You have limiting beliefs—and you’re unconsciously passing those on to your team.

8.  You are struggling to shift from “practitioner” mode to “leader/visionary” mode. The habits and skills that help leaders attain their first few millions inhibit their ability to generate the next ten million.   Many skilled experts excel at their trade, and later decide to start their own business in that field.  After their first few millions, they are still working in the business.  This severely limits their ability to look ahead and refine their growth strategy.

9.  You are constantly saying “yes” to interesting distractions (aka new ideas and projects). When the leaders keep announcing new projects and strategies, teams lack direction. They struggle to answer “What is our core business? Who is our ideal client?  Where do we invest? How does our job tie to our company’s success?”

Try this simple test:  Walk around your company offices.  Randomly ask each employee, “In 30 seconds or less, what does our company do?”  What percentage will provide a consistent, compelling answer?  Last year, I asked over 700 CEOs that question.  The overly optimistic ones said 30%.  The realists said less than 5%.  Which percentage is really true for you?

10.  You continue to sell old, unprofitable products—and invest valuable resources to support them. Many founders are emotionally attached to their past success and history. That’s human nature.  We love our babies and don’t want them to leave for college.  These blinders prevent us from gathering regular feedback on our current market opportunities, re-assigning our top performers to hot new projects, releasing poorly selling/low margin products, or staking a claim in new, highly lucrative markets.

If you face any of these Top Ten Traits, it’s time for a makeover.  What beautification steps will you take immediately to take charge of your market?

Copyright 2006, Lisa Nirell.  All rights reserved.

Article Source: http://www.articlesbase.com/entrepreneurship-articles/does-your-marketing-strategy-need-and-extreme-makeover-ten-costly-traps-to-avoid-208127.html

About the Author:
Lisa Nirell is the founder of EnergizeGrowth ( www.energizegrowth.com).  She helps successful entrepreneurial companies who struggle to consistently attract profitable clients.  She has shown thousands of leaders how to turn good ideas into exciting new seven figure business ventures.  Within two years, her clients generated an incremental $83M in new sales.

When you visit  www.energizegrowth.com  and register for the free quarterly EnergizeNews ezine, you will receive a complimentary 25 page “EnergizeMarketing Plan Startup Kit” and 11 page special Report (a $37 value).

Author: Mario Churchill

Marketing strategies are a must to all sorts of businesses. Investments will not work out the way they are intended to do so if the action plan is weak and insufficient. Marketing strategy taking its roots from the internet is now something clamored by many of the business owners.

It is due to the primary reason that the internet has become the main source of information for all people. Nearly more than a billion people are into the surfing of the internet on a daily basis.

Apart from it, internet connection has likewise become a must for all homeowners. Reality says that the internet is of great use. All of today’s actions are dependent on the use of the internet. How much more for the conceptualization of the marketing strategies?

Investments of all sorts require carefully planned out marketing strategies for they give life to the success of the business. By doing the marketing strategy online, you are surely opening the gateway to your prosperity. The internet is a host to thousands of websites that may give you further insights about marketing strategies.

Everyone knows how stiff the competition in the business has gone so it is your responsibility of keeping afloat with it. You surely do not want your competitors to get so much ahead of you. To be further open to such success, tune in to online marketing strategies.

Online marketing strategies do not just come out of the blue. It is necessary that these marketing strategies are related by all means with the policies, objectives, and tactics with which the corporate business is geared to. It is likewise important that everything must be in accordance to the mission of the corporation or else no quality services or products will be crafted.

The worst scenario to be faced by a business owner is to see a decrease in the production and the degradation of the quality of service his company is able to extend to the costumers. If for example during your most recent board of director’s meeting you found out that everything is in chaos, then you might want to consider looking into your marketing strategies. It pays off to take a close look at the operational management which your company engages in.

There is nothing you can do to save the company if you will not think of ways to boost your marketing strategy. Ask yourself-are you able to cover a large target? Are your staff members courteous and efficient? Are your goods and services of the topnotch quality? Is your marketing strategy in harmony with your business corporation’s goals and objectives? If you spot something wrong with any of these aspects, then you may have to change your marketing strategy scope and attack.

Securing the standing of your goods and services is a must. Then you must provide a solution to keeping loyal and efficient staff. After all, they are your helpers in achieving success. Then, better think of a way to be able to cover a large number of target potential customers. Online marketing strategy has been proven to work in its finest.

A lot of business corporations see the importance of the internet as it is a tool that allows the advertisements to reach a large area. You have to go along with the flow. Level up your marketing strategy by seeking the opportunity online!

Article Source: http://www.articlesbase.com/marketing-articles/marketing-strategy-care-to-do-it-online-95982.html

About the Author:
Mario Churchill is a freelance author and has written over 200 articles on various subjects.  For more information on  business ideas  or  brainstorming  checkout his recommended websites.

Author: Mario Churchill

Every successful business started with a very good marketing strategy that made it more competitive with other businesses in its field.  It does not mean that successful business shave more resources to start with.  However, these businesses are the ones who knew how to maximize whatever resources they already have and used them to their advantage.

Marketing strategy is really all about considering the resources available to the company and then finding a way to make sue of these strategies in the most creative way possible.  It is not so much about how much resources a business has at its disposal but how creative they can get to make the minimal resources they have to work for them.

Take a small grocery business faced with a bigger competitor.  This grocery has to find a way to be more competitive given the minimum resources it has at its disposal compared to its competitor.

As a marketing strategy, the small grocery store offered additional value added services to its clients.  It can be in the form of loyalty stubs that can be changed for some items after a while, free car cleaning or even free coffee for shoppers at certain periods.  All these are marketing strategies that are aimed at making the small grocery more competitive in the neighbourhood.

A marketing strategy is a product of a good marketing plan that will give the framework as to how the strategy can be implemented.  In this case, the management of the small grocery may have come up with a marketing plan detailing all the extra services that may be of interest to its clients.  The marketing plan signifies the methods of implementing the said marketing strategy.

Some small business fear competing with bigger businesses with more capital.  However, if a business has a very good product it can compete with its competitors provided it has prepared an effective marketing campaign or marketing strategy for its business.

A marketing strategy is usually based on a marketing goal.  The strategy is implemented with the view of achieving something during a certain period.  Each company can come up with different marketing strategies depending on the products or services they are dealing with.

Some companies that have lesser capital can find a niche and then concentrate on that niche.  Its competitors may be looking at the general market and it cannot compete on that level due to limited resources.   However the company can find a niche and then concentrate on this niche.

The popularity of the internet has produced a new generation of internet marketers who address their marketing to the e-market.  This means the marketing strategies may be a little different from traditional marketing strategies since it is directed towards a different audience.

Internet marketing makes use of a lot of marketing tools like email marketing, website development, building of a massive opt-in list, online purchases, link backs and a lot of other methods.

A marketer can provide both online and traditional marketing strategies for a business.  However, he should bear in mind that the aim of marketing is really to sell the business and to encourage the target market to look at the products or services, consider them as among his choices and then prioritizing such products and services when it is time to part with his money.

Article Source: http://www.articlesbase.com/marketing-articles/how-significant-is-marketing-strategy-for-businesses-117553.html

About the Author:
Mario Churchill makes it quicker and easier for you to create profitable  business ideas , develop your marketing strategy or start  brainstorming  on any topic. For a free trial, please visit  http://www.ideacenter.com.

Author: Mario Churchill

The main objective of every business is to grow and keep on profiting. Besides, what kind of entrepreneur would want to see their businesses fail? Although business has its risks, you, as an entrepreneur should know that you need to take risks in order for your business to flourish.

However, you also would never want to take too much risk on your business. This is why in all kinds of businesses, you always plan, plan and plan some more before you make a move.

As an entrepreneur you should have a written guideline for you to start your business’s marketing strategy. The guidelines are used by your business to judge your business’s actions accordingly.

A good marketing strategy should have the following goals in order to create a good marketing plan:

- Competitor

- Description of key clients

- Reasons why your product is unique

- Distribution channels

- Price strategy

- Research and development

- Expenses

- Marketing segments the company will compete in

With all of these included in your marketing strategy, you can be sure that you can really pave the road to success for your business.

Think of marketing strategy as a compass where it will guide your business to the right path. Having this kind of “compass” will make it clearer for you on what actions to take if you encounter an obstacle in your business’s path.

Decision-making is also the key in every business. With a marketing strategy, you will find that it will be easier for you to make a decision when it comes to leading your company to success. It will also help you prevent making the wrong decision.

Another advantage that a marketing strategy can provide is that you can set specific goals for your company. Whether it’s a short-term goal or a long-term goal, a marketing strategy will make it easier for you to set goals that can affect the way you run your business.

Depending on the situation, you can try different types of marketing strategies that will tailor your business’s needs. Here are some examples of the different types of marketing strategy:

- Market dominance strategy – This kind of strategy is used by companies to take control of a particular business.

- Innovation strategy – This strategy deals with the company’s rate of new product development and also innovation.

- Growth strategy – This marketing strategy is formulated to make the company grow.

- Warfare based strategies – A business competition is always there. And, sometimes your company needs to be aggressive to attack the competition or defensive to protect your company from losing profit.

These are some of the strategies that you can use in order to maximize business profit and minimize loss. Sometimes, it will be necessary for you to change your marketing strategy to cope up with the changes in the business world, such as new competitions, new technology or falling client numbers and profits.

So, depending on the situation, you should always plan on what kind of marketing strategy you should use for the benefit of the company. Running a business isn’t always smooth. There will be times that your business will be in danger of losing money or have decreased profit. Because of the ever-changing situation in the business world, you need to think of a marketing strategy to minimize risk and maximize profit.

Article Source: http://www.articlesbase.com/affiliate-programs-articles/marketing-strategies-increasing-your-business-profits-72149.html

About the Author:
Mario Churchill is a freelance author and has written over 200 articles on various subjects. For more information on  business ideas  or  brainstorming  checkout his recommended websites.

The marketing concept of building an organization around the profitable satisfaction of customer needs has helped firms to achieve success in high-growth, moderately competitive markets. However, to be successful in markets in which economic growth has leveled and in which there exist many competitors who follow the marketing concept, a well-developed marketing strategy is required. Such a strategy considers a portfolio of products and takes into account the anticipated moves of competitors in the market.

The Case of Barco

In late 1989, Barco N.V.’s projection systems division was faced with Sony’s surprise introduction of a better graphics projector. Barco had been perceived as a leader, introducing high quality products first and targeting a niche market that was willing to pay a higher price. Being a smaller company, Barco could not compete on price, so it traditionally pursued a skimming strategy in the graphics projector market, where it had a 55% market share of the small market. Barco’s overall market share for all types of projectors was only 4%.

Even though Barco’s market was mainly in graphics projectors, the company had not introduced a new graphics projector in over two years. Instead, it was spending a large portion of its R&D budget on video projector products. However, video projectors were not Barco’s market.

Barco’s engineers had been working long hours on their new projector that would not be as good as Sony’s. Some people thought they should not stop work on that product since the engineers’ morale would suffer after being told how important it was to work hard to get the product out. However, even considering the morale of the product team, it would not have been a good idea to introduce a product that was inferior to that of Sony. Barco wisely stopped working on the inferior product and put a major effort in developing a projector that outperformed Sony’s.

The Barco case illustrates several marketing strategy concepts:

• Price / Selling Effort Strategies: A firm that follows a skimming strategy seeks to be the first to introduce a product with very good performance, selling it to the innovator market segment and charging a premium price for it. It makes as much profit as possible, then moves on when the competition arrives. The price is likely to fall over time as competition is encountered. Such a skimming strategy contrasts with a penetrating strategy, which seeks to gain market share by sacrificing short-term profits, and increasing the price over time as market share is gained.
• Competitors have certain strengths and abilities. To succeed, a firm must leverage its own unique abilities.
• A firm should prepare defensive strategies before potential threats arrive. If the competition surprises a firm with the introduction of a vastly superior product, the firm should resist the temptation to proceed with its mediocre product. A firm never should introduce a product that is obsolete when it hits the market.
• The competition’s probable response to a firm’s actions should be considered carefully.

Marketing Research for Strategic Decision Making

The two most common uses of marketing research are for diagnostic analysis to understand the market and the firm’s current performance, and opportunity analysis to define any unexploited opportunities for growth. Marketing research studies include consumer studies, distribution studies, semantic scaling, multidimensional scaling, intelligence studies, projections, and conjoint analysis. A few of these are outlined below.

• Semantic scaling: a very simple rating of how consumers perceive the physical attributes of a product, and what the ideal values of those attributes would be. Semantic scaling is not very accurate since the consumers are polled according to an ordinal ranking so mathematical averaging is not possible. For example, 8 is not necessarily twice as much as 4 in an ordinal ranking system. Furthermore, each person uses the scale differently.
• Multidimensional scaling (MDS) addresses the problems associated with semantic scaling by polling the consumer for pair-wise comparisons between products or between one product and the ideal. The assumption is that while people cannot report reliably which attributes drive their choices, they can report perceptions of similarities between brands. However, MDS analyses do not indicate the relative importance between attributes.
• Conjoint analysis infers the relative importance of attributes by presenting consumers with a set of features of two hypothetical products and asking them which product they prefer. This question is repeated over several sets of attribute values. The results allow one to predict which attributes are the more important, the combination of attribute values that is the most preferred. From this information, the expected market share of a given design can be estimated.

Multi-Product Resource Allocation

The most common resource allocation methods are:

• Percentage of sales
• Executive judgement
• All-you-can-afford
• Match competitors
• Last year based

Another method is called decision calculus. Managers are asked four questions:

What would sales be with:

1. no sales force
2. half the current effort
3. 50% greater effort
4. a saturation level of effort.

From these answers, one can determine the parameters of the S-curve response function and use linear programming techniques to determine resource allocations.

Decision algorithms that result in extreme solutions, such as allocating most of the sales force to one product while neglecting another product often do not yield practical solutions.

For mature products, sales increase very little as a function of advertising expenditures. For newer products however, there is a very positive correlation.

Portfolio models may be used to allocate resources among major product lines or business units. The BCG growth-share matrix is one such model.

New Product Diffusion Curve

As a new product diffuses into the market, some types of consumers such as innovators and early adopters buy the product before other consumers. The product adoption follows a trajectory that is shaped like a bell curve and is known as the product diffusion curve. The marketing strategy should take this adoption curve into account and address factors that influence the rate of adoption by the different types of consumers.

Dynamic Product Management Strategies

Two fundamental issues of product management are whether to pioneer or follow, and how to manage the product over its life cycle.

Order of market entry is very important. In fact, the forecasted market share relative to the pioneering brand is the pioneering brand’s share divided by the square root of the order of entry. For example, the brand that entered third is forecasted to have 1/√3 times the market share of the first entrant (Marketing Science, Vol. 14, No. 3, Part 2 of 2, 1995.) This rule was determined empirically.

The pioneering advantage is obtained from both the supply and demand side. From the supply side, there are raw material advantages, better experience effects to provide a cost advantage, and channel preemption. On the demand side, there is the advantage of familiarity, the chance to set a standard, and the choice of perceptual position.

Once a firm gains a pioneering advantage, it can maintain it by improving the product, creating a standard, advertise that it was the first, and introduce a new product in the market that may cannibalize the first but deter other firms from entering.

There also are disadvantages to being the pioneer. Being first allows a competitor to leapfrog the early technology. The incumbent develops inertia in its R&D and may not be a flexible as newcomers. Developing an industry has costs that the pioneer must bear alone, and the way the industry develops and its potential size are not deterministic.

There are four classic price/selling effort strategies:

In general, products are clustered in the low-low or high-high categories. If a product is in a mixed category, after introduction it will tend to move to the low-low or high-high one.

Increasing the breadth of the product line as several advantages. A firm can better serve multiple segments, it can occupy more of the distributors’ shelf space, it offers customers a more complete selection, and it preempts competition. While a wider range of products will cause a firm to cannibalize some of its own sales, it is better to do so oneself rather than let the competition do so.

The drawbacks of broad product lines are reduced volume for each brand (cannibalization), greater manufacturing complexity, increased inventory, more management resources required, more advertising (or less per brand), clutter and confusion in advertising for both customers and distributors.

To increase profits from existing brands, a firm can improve its production efficiency, increase the demand through more users, more uses, and more usage. A firm also can defend its existing base through line extensions (expand on a current brand), flanker brands (new brands in an existing product area), and brand extensions.

Recommended Reading

McGrath, Michael E., Product Strategy for High Technology Companies

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