Three Firms and Its Marketing Opportunities - Case Study Example

 Three Firms and Its Marketing Opportunities Introduction Marketing opportunity refers to a new need in the market that a firm can exploit as result of it (the opportunity) not being exploited by the competition. Due to a recent slump in the American economy that led to lower than expected performances by most companies, it is vital that firms grasp new marketing opportunities and use them to the maximum effect to help with their own recovery and to improve their bottom lines. Firms that take advantage of existing marketing opportunities give themselves an advantage and can grow its revenues appreciably. Firms can take advantage of existing marketing opportunities by making their relationships with existing clients deeper and therefore generate more business or expanding their footprint through mergers and acquisitions. This paper will review the marketing opportunities for three American firms namely Net App, Salesforce and Edward Jones. These have been chosen randomly from a list of American companies and also for their uniquely innovative services and existing marketing opportunities. Literature review Net App 1. This is currently the fifth largest data storage firm in the USA whose revenues increased by 33 percent in 2009 (“CNN Money”, 2011). Net App offers online storage solutions to companies and firms who have need for large volume storage of its data but does not want to invest in a data storage service of their own and so outsource storage to Net App. The increasing use of the internet and computers in business means there is always going to be a lot of data and information available that needs storage and management. With increased digitization for instance, people would be happy to have a scanned copy of their documents stored somewhere safe in a digital format for replacement in case of loss or damage or just renewal. Net App offers efficient, affordable and powerful stogie solutions for organizations. A marketing opportunity exists for them to tap in a bigger way into the domestic/ individual data storage and management solution and include offsite backup and restoration systems for clients. Almost every computer, portable or smart phone user knows very well the headache and costs of loosing personal data for instance losing a whole laptop with say all your project data and with no serious backup; it means purchasing a new laptop, software and starting the project all over again. People are relying more on data and information as economic drivers for enterprises and businesses, which poses its own new risks. Research and information indicate that firms that suffer computer outage for more than ten days never recover fully financially. Also half the businesses and organizations suffering such problems will be out of business within five years (Smith, 2003). This affects businesses greatly and costs a lot while individuals also suffer a lot of anguish due to lost data through theft, device failure, viruses attack, or human error. Starting and offering such a service in addition to its corporate data storage solutions would present a new and unique marketing and growth opportunity for Net App. The danger with this opportunity is that handling individuals is far more complex and may lead to a lowering of quality of service. 2. This marketing opportunity is a home run since it will involve the company starting a completely new product and business line. The new product line is likely to be a high capital intensity enterprise and it does not have the highest chances of failure (Samski, 2011). 3. The risk in undertaking this opportunity for Net App would be a large capital outlay and it would take time to develop, refine and promote. There is a chance consumers may not take it up as well as envisaged by Net App leading to losses. The opportunity is also risky in that it does not have the highest chance of succeeding. Management may not be comfortable with the risk and if not shared the idea dies out prematurely (Schroer) 4. For Net App, this would be a strongly recommended opportunity to take up as there is an increased use of computers and other mobile devices by individuals and the threat of data loss is ever present 5. A) This would have a positive PR effect on the firm as it would mean even individual users of computers would feel the company does not ignore their needs and infact have something for them. B) Financial improvements would be minimal in the first year but long term has the potential of bringing in huge revenue Salesforce 1. Salesforce is a global firm with its headquarters in San Francisco CA and specializes in enterprise software services and solutions such as customer relationship management (CRM) software. It specializes in cloud computing services for enterprises where users can access their CRM solution as long as they can access the internet through a mobile device or a computer and carry out transactions, monitor enquiries and other traffic form many channels simultaneously. It also has a platform where external programmers and developers can build applications to add on to the core Salesforce products and have them hosted within the infrastructure of Salesforce. The development of social media over the years has been exponential and its use in business for advertising is gaining ground. 2. This would be a single for Salesforce as it would involve upgrading its existing technology and adding new applications (Samski, 2011) as it already has an internet based CRM solutions on the cloud. 3. There is the risk of the product not being taken up enthusiastically by existing customers due to privacy and security concerns; however this is not likely to be a big challenge as social media is becoming a part of most businesses and such data would be of great importance to businesses (Lodge, 2012). Since social media are public, having some information in the public domain through social media may not be overly welcome by the users. 4. The social media presents a big opportunity for businesses as many internet users are on some form of social media. Hundred millions of users for instance of face book are a huge market who easily form interest groups and have members joining with the US having an approximated 131 million users of face book alone (Griffith, 2011). These groups keep each other updated with messages, multimedia, and documents and because there are so many users, these sites can be used to get new customers, promote a product and the business a whole. Salesforce, by being in the cloud computing and solution offering can tap into this market that incorporates social media in their CRM solutions; this will enable business owners to connect with their customers, advertise and get honest feedback on their product offering form comments made by social networking users. The users can also monitor real data on how who discuss, say a product on the social media and what was said. Users of Salesforce products will also be able to get into social networking sites while still in the Salesforce infrastructure thereby combining customer relationship management with social networking; this will be a big plus for businesses. The businesses can use the social networking data obtained from the Salesforce application for social media in real time to help in planning and strategic decision-making. 5. A) This would have a very positive PR on Salesforce since a presence in, and data from social networking sites will be an instant plus for its customers who run their CRM solutions online. B) Depending on what is charged additionally, the uptake is likely to be massive and this would give Salesforce a new huge revenue source as firms are interested in expanding their client base and data from social networking would greatly help their cause. Edward Jones Edward Jones offers investment advice to individuals and has done so for the last fifty years. Investment is an important area in most people’s finances as people are seeking the best portfolios to put their money with minimal risks and the best consistent returns. Edward Jones business model is to have single offices of financial advisers at every local community where their customers work and live with the aim of bringing services closer to the people and offering individualized service. While this is a good model, it has issues of high costs of operation for the company and they may not reach every location. 1. One way to reach a wider audience is to start online-based financial advisory services where one can register at a fee, log in at their convenience, and seek advice. This will ensure they (Edward Jones) are able to reach a wider audience easily through the World Wide Web. With the new trends of fast internet speeds and bandwidth, it is possible to have video conference interactions with customers using the internet. This will lower costs and have the company reach a much wider and diversified audience especially youngsters between ages 25 and 54 who are the biggest users of social media with a combined usage of 62 percent (“Pingdom”, 2010). 2. This represents a low hanging fruit for Edward Jones since they will be developing a means for contacting and advising their clients in a very inexpensive and efficient way reducing costs for the customers as well as themselves (Samski, 2011). 3. The danger that exists in adopting this opportunity is that financial advisory services is still a traditional business model where direct contact and interpersonal interaction is still the norm and people may not be too enthusiastic discussing investment options over the internet for instance through chats. 4. This is a strongly recommended opportunity for Edward Jones since it would attract even youngsters who feel they do not have much to invest in the first place and so would not visit Edward Jones offices. This will give the firm a much bigger footprint, more choices on how to get financial services and lowered costs for the company. 5. A) It will definitely have a positive impact on Edward Jones PR, as word will go round that finally they are offering financial and investment advice online and probably at a much lower cost. An online presence will definitely have social media where people can share their experiences; a definite plus for Edward Jones PR. B) it will have a major financial implication for Edward Jones as revenue is likely to surge with more people signing up; the low starting costs will help this cause. Conclusion Marketing opportunities exist and organizations that recognize and take advantage of them as soon as possible get ahead by gaining new territory or having the advantage of a new product line. Net App has the opportunity of introducing online backup and restoration of data services for individuals. Salesforce has the opportunity of introducing a social media application and monitoring tool into their existing CRM solutions that are cloud based. Edward Jones has the opportunity of introducing internet based financial advisory services to their clients. Of the three marketing opportunities reviewed, the use of internet to offer investment and financial advisory services to clients by Edward Jones is the most viable. This is because it will serve to educate the wider public especially young persons who use the internet on investment and financial planning for their future; a service that is critical to the future of generations and the US economy more than ever. References CNN Money (2011, Feb 07). 100 best companies to work for. Retrieved from http://money.cnn.com/magazines/fortune/bestcompanies/2011/snapshots/5.html Griffith, T. (2011, April 24). Tapping into social-media smarts Retrieved from http://online.wsj.com/article/SB10001424052748703518704576259252907505330.html Lodge, T. (2012). Importance of social media Retrieved from http://asktristramlodge.com/importance-social-media Pingdom (2010, Feb 16). Study: Ages of social networking users Retrieved from http://royal.pingdom.com/2010/02/16/study-ages-of-social-network-users/ SSamski, S. (2011, October 06). Marketing opportunities: Home runs, singles, and low hanging fruit Retrieved from http://sincerlysamski.blogspot.com/2011/10/marketing-opportunities-home-runs.html chroer, W. (n.d.) New product risk Sharing the burden Retrieved from http://www.socialmarketing.org/public_library/newproduct.htm Smith, D. (2003). The cost of lost data Graziadio Business Review, 6(3), retrieved from http://gbr.pepperdine.edu/2010/08/the-cost-of-lost-data/ Read More