Reds Marketing Tips

Reds regularly creates Marketing Tips for users who would like to increase, and perfect their marketing campaigns.

Sponsorship - an existing event versus creating your own event

The difference between a mediocre and successful sponsorship lies in the leverage of sponsorship. Maximizing visibility through creative and imaginative exploitation can maximize coverage and awareness and optimize the return on investment. An Existing EventThe success of an existing event depends on the skills and experience of the organizer. The following questions should be asked;* Who is responsible for event promotion?* Will it draw spectators?* How can attendance be maximized?* Are rights fees and admin costs understood?* What budget is set for sponsorship leverage? There are a few strategic considerations in selecting an existing event.* Will there be any other sponsors besides yourself and at what level of involvement?* What are the rights allocated to other sponsors and how does it differ from yours?* Did the other sponsors gain rights proportionate with their payments?* How was the price determined?* Are the other sponsor's businesses compatible with yours?* Ensure visibility of your brand if the event is cluttered.* Identify the opportunities of hospitality.* Can the brand association dilute and overpower the brand association developed by a previous sponsor? Creating your own eventCareful control is needed when creating your own event.Some areas to consider;* Positioning statement that is branding the image* Hospitality - how your customers and VIP guests are treated* Number and type of sponsors* Event quality Creating your own event involves risk and advice from lawyers, insurance professionals are required. Broadcast sponsorship provides the best coverage over the widest possible audience.Take the following into consideration when considering broadcast sponsorship* Market coverage...

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Direct Marketing

How to use a data listing for a direct mail campaignYou can start your search for a list broker by looking in your local Yellow Pages. Check out their references carefully before getting involved. You're using your customers as templates for additional prospects. Depending on your product line, you might focus on postal codes, on subscribers to a particular magazine, sometimes on income (Sandton) or the youth (Schools/Technikons). List brokers have access to many thousands of lists. You'll pay up to ±R1300 per thousand names on a list, depending on the complexity of the list (i.e., if you want not only name and address but other demographic data). Brokers typically have a very thorough understanding of their lists and can give you insights into the best list for your use. The more you know about your current customers, the better use you'll be able to make of your list broker's experience. You don't buy lists – you rent them, usually for a single-time usage. If you want to send a second mailing later to the same list, that's another charge. If you know you'll be sending a series of mailings to a given list, mention this upfront for a cumulative rate. You can't simply fold these names into your database of customers. Not only would it be illegal and wrong, but you'd also get caught. Every list is "salted" with "ringers," names that aren't real but simply serve to give away any mailing done to the list. If the list broker's...

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Why Direct Marketing is Accountable Advertising

Direct marketing is an interactive system of marketing designed to create and keep customers by developing long term, personal relationships with each other through increasingly relevant products or services. Direct marketing is designed to:* solicit and close a sale* to generate interest* and to motivate a store visit. Methods of coding and tracking can lead you back to the advertising source. The final return can be calculated to the last cent. No other activity with the exception of personal selling can be measured this thoroughly. The advantages of direct marketing are:* Accountable advertising - each rand is accountable for* Added-value advertising - increases sales, creates awareness and builds brands* Answer back advertising - feedback* Allegiance advertising - communication builds loyalty* Appropriate advertising - relevant* Action advertising - provokes an action* Automated advertising - personal or direct The most cost-effective type of direct marketing activities are:Mailshot - personalized to the client with specific items that will create a desire for the need to purchase.Statement stuffers -DL leaflets inserted with the clients' statement.Inserts - effective in magazines that have a specific target audience.Telemarketing - effective but the most expensive form of direct marketing.Internet - effective and getting better all the time as the security for credit card purchases improves. There are four variables for ultimate success:Target marketResearch is needed to determine who is the target market and what their needs are. Accurate targeting makes direct marketing powerful and effective as it ensures efficient use of the advertising budget. Should be analyzed in tradition...

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Marketing in the Service Industry (Part 1)

The service industry is the strongest growth and more people are employed in services than in all other sectors put together.Services have five important features that affect how they are managed and marketed. The services provided are of a specialized nature, these arise from the* intangibility of the offering,* inseparability of production and consumption,* heterogeneity - the difficulty of achieving standardization* perishable nature of the service.* ownership - the lack of full use only have the service for a limited time. Companies have developed new models of successful management practice. IntangibilityUnlike goods, services cannot be seen, touched, tasted or smelled. They are an experience or a process. This has a number of implications for the consumer and buyer.* Lack of physical qualities increases purchase risk - you can examine the shape, colour and features of a vehicle but you cannot do this with a haircut or an aeroplane ticket.* Quality of service can only be judged after it has been received - a repair on a vehicle.* Tangible clues gives the perception of the level of quality - appearance, staff and prices.* Lack of physical characteristics makes it difficult to display and differentiate the offering.* Impossible to patent services innovations - can be easily relocated by competitors. To deal with these problems the following strategy should be undertaken:* Stimulating personal influence sources as word-of-mouth. This includes encouraging customers to recommend the service to their friends.* Developing tangible cues that suggest high-quality service. These can include location, staff, equipment, advertising, and symbols...

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Marketing in the Service Industry (Part 2)

In Part 1 we covered intangibility and inseparability and the reason to highlight the service industry To recap, there are three reasons. Firstly the service industry is the strongest growth and more people are employed in services than in all other sectors put together. The second reason is the specialised nature of the market. Services have five important features that affect how they are managed and marketed. The services provided are of a specialised nature, these arise from the* intangibility of the offering,* inseparability of production and consumption,* heterogeneity - the difficulty of achieving standardization* perishable -nature of the service* ownership - the lack of full use only have the service for a limited time The third reason is some of today's service companies have developed new models of successful management practice. HeterogeneityHeterogeneity is the potential for high levels of variability in the quality and consistency of service. It's difficult to achieve a consistent level of service. For example, two visits to a restaurant may not be identical in performance. The difference will depend on the staff in charge. Unlike machines, people are not normally predictable and consistent in their attitudes and behaviour. This makes it difficult for service organisations to develop a consistent brand image.There are three ways of reducing the effects of heterogeneity; * Invest in the personal selection, motivation and training* Standardise the service such as McDonald's* Customise the service to suit the target such as an exclusive hotel PerishabilityServices cannot be saved. Hotel rooms not occupied, airline...

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Major Tasks of Service Organisations (Part 1)

There are four central tasks facing managers in the service industry:  * Managing quality * Managing productivity * Managing service staff * Achieving differentiation Managing Quality The single most important factor of a service is its quality. This determines the long-term profitability and market share of the firm. However, quality is very hard to define in the service sector. Many have suggested doing it right the first time or having zero defects, but few have achieved these objectives on a consistent basis. Firstly, it's hard to measure quality because there is nothing physical to measure. There is no fuel consumption or music power to rate. Secondly, heterogeneity means that consistency can rarely be achieved. Thirdly, the inseparable nature of production and consumption make it difficult for firms to control the quality process. Lastly, the interaction of staff and customers means that customers evaluate not only the outcomes but also in terms of the process or manner in which the service is delivered. The difference can be a smiling waitress as opposed to a frowning one. Managers have to focus on the determinants of quality as follows; * Reliability - how consistent is the service? * Access - is the service easily accessible? * Credibility - can consumers trust the company? * Security - is the service free from risk and danger? * Knowledge - is every effort made to understand the needs of the customer? * Responsiveness - how willing are employees to provide service? * Competence - do staff have...

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Managing service staff tips

There are four central tasks facing managers in the service industry: * Managing quality* Managing productivity* Managing service staff* Achieving differentiation Managing service staffThe customer normally meets a wider spread of employees in the service sector. Each contact is a 'moment for truth,' so to speak in which it is decisively judged. In goods firms, marketing focuses mostly on external factors but, in services, it is mostly internal. Unless management meets the needs of employees, the organisation will not have staff who buys into the mission statement. The following are techniques to motivate employees:1. Employee-of-the-month awards2. Increase employees' visibility and proximity to customers by allowing them to see and hear how the customers respond to their work.3. Training and indoctrination to instil a sense of pride in the employees.4. Peer group control via commitment and team building to reinforce commitment.5 Appropriate environments such as equipment and systems to be able to satisfy the customer. Achieving differentiationIn achieving a differential advantage there are certain areas to take notice of: Integrating marketing and operationsIn services, managers are usually responsible for marketing and operations. Marketing thinking can often be forgotten by the problems of running a bank, hospital or a large IT company. Use time management systems to allocate time for marketing and operations and avoid trying to do both simultaneously. Product differentiationThere is no tangible product to compare in services and judgment is therefore purely subjective. The areas to concentrate on when servicing a client should be:The quality of serviceFriendly and courteousPunctualityBe right...

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Components of a Service Marketing Strategy

There are four central components of a service marketing strategy. 1. Target market segmentation This entails breaking down the potential market into segments; * Matching the customer needs and price sensitivity * Choosing the most attractive segment by its size, average profit and fitting into the firm's capabilities. * Researching the latent wants of customers and identifying the problems they face i.e. good quality service, and how well your competitors are servicing the expectations of customers. 2. Differential advantage After defining the market, a positional concept has to be created. The concept should be based on the most important attribute: will the customer acknowledge the difference immediately from your competitor. For example Outsurance - "you will always get something out" or KFC 'Finger-licking good" or a simple one "customer satisfaction". The concept should have sustainability as services are easily copied and improved by stronger firms. 3. Operating strategy This should transform a marketing opportunity into high performance for the firm. A few points to consider; * Search for value-cost leverage - maximise the offering and the cost in providing the service * Develop the design for service delivery * Create a strategy system that integrates the delivery system and the positioning strategy * Create a central vision with employees to build performance quality 4. Service marketing mix The last step is to create a marketing mix using product, price, place /distribution and promotion. Product Services are intangible, therefore is often difficult to understand the service being offered and the quality of...

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Products & Services Distribution Tips

Once you have decided on the distribution channels, the next step would be to design and operate a physical distribution system that will deliver products and services effectively and efficiently. Physical distribution or marketing logistics starts by asking how customers want to receive the product and then work backwards to the design of materials, final goods, inventory scheduling, transportation, warehousing and customer service to meet those needs. There are five key determinants of distribution costs and service levels. 1. Customer service Identify what customers want and estimate the benefits and costs of meeting these wants. Remember that the higher the service level the more it cost. * Availability - meet needs from existing stock. * Speed of delivery - customers will pay more for expeditious delivery. * Reliability - customers need to be informed of delivery and their expectation is met. * Lot size - number of units that customers are permitted to buy in one single purchase occasion, small lot sizes add to the cost. * Product variety - greater range for more convenience and choice for the customer. * Convenience - more till points and outlets. * Service and support - financial support, installation, maintenance and after-sales service. 2 Communications and order processing The re-engineering of order processing and internal communications is offering companies major sources of competitive advantage and cost savings. Modern computer systems can offer major opportunities in this area such as SAPS. 3. Production and warehousing location decisions The key determinant of stock availability is the...

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Pricing Policy (Part 1)

Pricing is the key to a firm's profitability in the short and long term. Many markets are not pricing sensitive and the price is only one dimension of value, so the concept of creating superior value lies at the heart of the offering, and not the price. Low prices rarely provide a basis for sustainable competitive advantage. A pricing strategy should begin with an assessment of price competitiveness and the formulation of pricing objectives. The first task is to determine which competitors in the market are perceived as offering the best value. Value is a mixture of price and perceived quality. Assessing the value, therefore, requires research into how customers perceive the quality of alternative offers. There are various methods of researching such perceptions; * a} Identifying the dimensions of quality       Determine the product or service qualities or attributes that customers look for when choosing suppliers. * b) Weight quality dimensions       Establish which dimensions customers perceive as the most important. * c) Measure competitors dimensions        Customers are then asked to rate competitors offers along the dimensions of identified qualities. * d) Discover price/quality preferences The Influences on pricing decisions Underlying business objectives -the initial pricing decision will be influenced by the underlying marketing and financial objectives of the business. * Stage of the evolution of the market - introduction, young or mature stage. * Target market segments - increasing in number, becoming difficult to define, are continually evolving and are dynamic. * Competitor targets - prices are never set...

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