Cooperative Marketing in a Global Arena - Assignment Example

16 March 2008 Cooperative Marketing in a Global Arena Question To ascertain the effectiveness of a marketing initiative, what are the types of marketing metrics that would best benefit GGI? With a greater variety of marketing metrics available throughout the global marketplace, small businesses such as Global Gadgets Imports (GGI) must choose the most effective strategies to increase sales and reach the widest audience through incentives (Visa and Marriott). Word of mouth and sponsorship with channels such as the Internet have become useful tools in marketing, especially for a company in a limited area (Marketing Metrics). GGI is located in only a three-state area and mainly uses one Asian distributor. The company therefore is in a position to utilize cooperative marketing (Co-op Advertising) by adding wholesale housewares to their line of home decor and gifts, and offering discounts overall, as well as packages to the consumer that include suggested combinations of furnishings. This is a practice that has made IKEA a household name (IKEA). Since, at the present time, GGIs retail sales are flat and the distributors wholesale revenues have decreased, it is important to plan a strategy that will do the most for both the retailer and the distributor. Change is an important aspect of any company in the twenty-first century, and only by a willingness to find innovative ways to market goods will a small company be able to profit in a world marketplace (Obringer). As part of a marketing plan, metrics such as a mail order system, mailing list, home show participation and an innovative Web site should be included in the plan. Question 2: How can GGI ascertain the effectiveness of marketing campaigns such as advertising or direct mail? It is necessary for the company to determine their customer base and decide whether an advertising campaign would be better than direct mailing. Probably the direct mailing would be the best way at first to reach local customers, because the company might have an up-to-date mailing list and might deal with their customers on a regular basis. Also, for a small company, the cost is reasonable. All company literature, including a newsletter, can be part of the direct-mail package, and the design of the mailing label could be the first way of getting a customers attention. (How to). Question 3: What sort of response rate should the company expect in a direct mail campaign? There may not be a high percentage of response to a direct mail campaign sent to an established mailing list. It could generate up to 3%, which doesnt seem like much, but that could be enough to increase sales enough to cover the costs and turn a profit. In the brochure, it is important to let regular customers know that there is a much improved, less expensive product available due to cooperative marketing with GGI and the Asian distributor. Another important thing to do at this point is to change the company name by using a logo that is simple but memorable and stressing benefits of these new products as ecologically sound. From the mailing label to the enclosure of a newsletter, every part of a direct-mail package should capture the attention of the customer and make him or her respond in a positive way. Question 4: How can the company use surveys or market research to refine the marketing plan already in place? Once a brochure has been designed that makes it clear to customers that changes are being made in the business with quality products a priority as well as discounted prices and an innovative logo that makes people remember GGI, it is important to stress benefits that matter to the public in this century, such as simple marketing and ecological concerns. In addition, a well-designed, easy-to-use Web site can expand the customer base considerably with advertising over the Internet, especially with a customer base already in place (Speech). Word of mouth is an excellent way of increasing visibility for a small company. It is not enough to track customers, however. It is necessary in this century to involve the customers in the product and measure the influence of marketing across the firms strategic goals (Forresters). Surveys on the Internet are an excellent way to learn what a customer wants. Question 5: How is CRM (Customer Relationship Marketing) different from traditional marketing? Customer Relationship Marketing is very simply what it sounds like: giving priority to a specific customers needs, finding out first what the customer wants and perhaps through surveys online that offer incentives—airline rewards or cash toward selected products—make sure products meet customer needs. It is important to design a Web site that offers products your particular customer base would want. But first, they have to find your Web site. There are three ways to do this (Hughes, par. 4): Find prospects and customers and attract them to your web site. Once you have done this:  Give them a wonderful experience. Give them some free rewards. Capture information from them that is needed to build a relationship with them. Sell them something and then:  Build a database of visitors and customers. Use that database to support an ongoing relationship that is delightful to the customers and profitable for you. Before you can gain a great deal from your Web site, you must make sure people will go to it by putting your Web site name on every piece of literature that customers might see—products, manuals, brochures, ads, business cards, stationery, and messages (Hughes, par. 5). Another suggestion on the Internet is to place banners on other sites that might attract similar customers. This is an extremely reasonable expense even if there appears to be no appreciable response. Also, in GGIs case, create a link to your distributors Web site. Question 6: What metrics are used in CRM? CRM calls for the same metrics as in regular marketing, such as sales, market share, industry rating and return on investment, with the addition of customer satisfaction. This concept, however, changes the whole marketing effort since it focuses on the individual rather than the overall marketplace. By making drastic changes in a business, for instance, joining with the Asian distributor to bring about cooperative advertising, or redesigning the product and creating an appealing Web site based on specific customer needs will initially decrease profits, but the ultimate result will be worth the effort. Question 7: What is personalization and how is it used to increase sales? Personalization as a system of marketing does more than just establish a customer base; it caters to the needs of individual customers that use a companys product. Some areas affected by personalization are pricing, offers, discounts, customer service, merchandising, delivery, and packaging. Considering that GGI has in the past presented their products in a “plain brown wrapper,” it is evident that they need a much stronger brand image. Even though repackaging will cost more, staying with the present design is not increasing sales, and a new design, a positive image, and a major communication campaign, utilizing the Internet and targeting the personal aspects of products offered, would show company growth as the customer base increases. Perhaps the most important changes should be the company logo, with a unique simplified design, and an emphasis on the quality of the product. Everyone recognizes certain products based on logo, such as Nike, Target, Exxon, Gerber, and there is name recognition for products like Maytag, Kleenex, and IKEA. These are internationally known companies, but they are also companies that started small and developed by offering quality products and finding ways to save on expenses. Works Cited Co-op Advertising. 2006. San Antonio Express-News.10 March 2008. http://www.express-news.com/2007/special/coop.php Forresters Marketing Blog. 27 April 2006. Online. 13 March 2008. http://blogs.forrester.com/marketing/2006/04/how_do_you_meas.html “How to Create a Direct Marketing Campaign.” 2008. Entrepreneur.com. 13 March 2008. http://www.entrepreneur.com/marketing/marketingbasics/marketingmaterials/article80786-3.htm “IKEA Succeeds in Supplying Furniture for the Majority.” 26 February 2008. Taiwan Economic News. 14 March 2008. http://cens.com/cens/html/en/news/news_inner_22458.html “Marketing Metrics: Linking Marketing to Financial Consequences.” 2008. Wharton Executive Education. 13 March 2008. http://executiveeducation.wharton.upenn.edu/open-enrollment/marketing-sales-programs/marketing-metrics-financial-consequences.cfm Obringer, L. E. 2008. “How Marketing Plans Work” 15 March 2008. http://www.howstuffworks.com/marketing-plan.htm Speech – Mark Baker of Leatherman. May 1997. Leatherman Tool Group. News Release. 10 March 2008. http://www.leatherman.com/news/press-releases/archives/article.asp?articleID=73 “Visa and Marriott offer the Visa Escape! summer travel promotion.” 19 May 2003. Visa News Release. 10 March 2008. http://www.visaeurope.com/pressandmedia/newsreleases/press153_pressreleases.jsp Read More