Sunday, December 4, 2011

Shopper Segmentation

A segment is built by analyzing data and grouping (clustering) elements that share similar characteristics (in the case of retail demographic, expenditure, lifestyle and media preference information). Segmentation is essential for cost effectiveness and accurately targeted direct marketing.

Attitudinal segmentation is commonly employed through market research data in the retail industry to gain insight into the customer attitudes, wants, views, preferences, and opinions about the enterprise and the competition. In addition to external / market research data, transactional data can also be used for development of effective segmentation solutions. It can be used to identify high-value customers and prioritize their handling according to their measured importance.

Behavioural segmentation is also based on transactional data and separates customers according to attributes that summarize their shopping habits. Such as:

1. Frequency and recency of purchases
2. Total spending pattern
3. Relative spending amount per product group
4. Size of basket
5. Preferred payment method
6. Preferred time/period/day of purchase
7. Preferred store / channel

The derived segments can be used for the development of differentiated sales, and marketing strategies and tailored to their recognized consuming habits.

The POS (Point of Sale) data is usually tackled by introducing a loyalty program which assigns an identification files to each transaction and permits the tracking of the purchase history of each customer and aggregation of the transactional information at a customer level.

RFM (Recency Frequency Monitory) analysis is a common approach for understanding customer purchasing behaviour. As the name suggests it involves the calculation and examination of three - recency, frequency and monetary that summarize the corresponding dimensions of the customer relationship with the organization. This model identifies the customer purchasing patterns and respective customer types of interest (infrequent big spenders or small but frequent purchases etc).

Market basket analysis identifies customer purchasing behaviour. Market basket analysis discovers relationships between pairs of products purchased together. It provides insight into the combination of products within a customer's basket. Market basket analysis can be used in deciding the location and promotion of goods inside a store.

Consumer have different preferences for the product and services offered on a market or respond differently to marketing actions. Companies can increase profits by using a commercial strategy differentiated by segments. In the dynamic competitive environment, enterprise need to try to understand its customers by gaining insight into their needs, attitudes and behaviours. Hence, segmenting helps to target appropriate marketing strategies to the most profitable shoppers.


Thursday, November 3, 2011

Corporate Image Theories

Kotler explained that "corporate image is the consumer's response to the total offering and is defined as a sum the belief, ideas, and impressions That a public has an organization."

This means that corporate image is the consumer response to the overall offering provided the company and is defined as the number of beliefs, ideas, and the impression people in an organization.

While Nguyen and Leblanc revealed that the company's image as:
"Corporate image is described as overall impression made on the Minds of the public about organization. It is related to business name, architecture, variety of products / services, tradition, ideology, an to the impression of quality communicated by each employee interacting with the organization's clients ".

Meaning corporate image is an overall impression that is formed minds about the company public. Where the image associated with your business name, architecture, variety of products, traditions, ideology and the impression on the quality of communications made by any employee who interacts with the client organization.

Dowling stated that, "corporate image is a set of beliefs and feeling about an Organizations'. Can be interpreted that the company's image is a set of beliefs and feelings about an organization.

The image can be said to be the public perception of the experience, beliefs, feelings, and knowledge society itself against the company, so that aspect of the company-owned facilities, and services delivered to consumers may affect employee perceptions of consumers towards the image.

Thus the image is one of the most important asset of a company or organization that should be built and maintained continuously. A good image is a powerful device, not only to attract consumers in choosing a product or company, but also can improve the attitude and customer satisfaction to the company.

Corporate image can not be engineered, meaning that the image does not come by itself but rather shaped by society, of communication and openness in the company's efforts to build a positive image that is expected. Efforts to build an image can not be done randomly at certain times only, but is a long process. Because the image is all perception of objects formed by consumers by way of processing information from various sources all the time.

Sunday, October 23, 2011

Ambush Marketing

In every place in this world, there are days when people become less productive work in doing their business, choose to shift the focus on something else, or shopping like crazy. The days before Lebaran for example, before Christmas, or even at the time of election.

But, if there are moments that make the people in almost all countries to become less productive, it is the World Cup. There are reasons to use this World Cup to perform other activities besides work. Either watch a game, browsing the Internet, to soccer betting. This event abroad could trigger domestic violence, divorce, not to mention a heart attack. Reportedly, the rate of sudden heart attacks increased 25 percent during the British defeat by Argentina on penalties in the 1998 World Cup. The risk of heart attack is increased when you just put your money in a bet too big ball.

In college, professors who are like to watch the ball usually come to class with a sleepy face. In fact, they often cancel classes for the World Cup. The students had the same problem, and certainly understand this. Also in offices, the bosses could understand if his staff was too late. Hey, this is the moment every four years and all the people doing the same. So, the boss must understand!

The stock analysts even analyze the relationship of this championships with stock market data. Analyst at Money Science analyzed from 11 World Cup events, the average decline in U.S. stock retun about 6 percent. In fact, the U.S. is not a country with a high football passion. Meanwhile, Nikei index opened down a few points at the time when Japan's defeat in World Cup 2006. Is there a relationship between the stock market with the World Cup? I do not know, but anyway as World Cup winners Italy also experienced a weakening in the stock index shares. Is euphoria a victory or defeat that suppresses stock index?

Clearly, the most productive in the current World Cup is FIFA, included-should-the marketers who use these events. At the 2006 World Cup, FIFA can get a profit EUR 1.1 billion, a $ 700 million is coming from sponsors. Companies such as Emirates' refusal to sign a contract of USD 195 million to become an official sponsor of this year's World Cup.


Not to mention the broadcasting rights which has always been a scourge in Indonesia. Holders of broadcasting rights and licenses the World Cup has always been considered stingy to share. All matters relating to this event have to pay royalties. You imagine yourself, Rp 100 billion is not small money to buy the broadcasting rights, and it was still confined to strict FIFA rules in property rights. Not surprisingly, in Indonesia every time the World Cup will take place, there must be broke down about broadcasting rights.

Country like Indonesia who have unusual heed property rights, it is difficult to accept restrictions on the use right of the World Cup. What happened recently sparked even journalists marched in the PSSI's office. As a licensee, Electronic City banned the use of the word "World Cup" includes translation (World Cup) as the name in their title, except in the body of the news. Hence, for the title of this article did I hesitate to use the words "World Cup". You will definitely surprised, if you check on IPR, the words "World Cup" has been registered as a trademark by FIFA!

For the marketer, the World Cup of course be an interesting moment to be exploited. Television industry usually expects this moment as a moment to boost sales. Also the cigarette industry, nuts, snacks, cafes, hotels, up to IT. Worldwide Visa has issued 500 more art materials as part of integrated marketing communications for the World Cup. Coca-Cola campaign has held a road show for this event.

FIFA itself has been reminded of the many Ambush marketing around the World Cup. Namely, marketing activities to join another brand-sponsored event. Adidas may be the main sponsor of the World Cup, but some football players wear the Nike logo on the shirt ball. Coca-Cola became the official World Cup sponsors, but Pepsi cleverly using Beckham as a vigorous endorser ads all over the world at the World Cup event. According to the survey, consumers thought that Pepsi as the official sponsor of the World Cup.

World Cup and all the translation it has become common language in this world. The world seemed to stop because of the World Cup. Many lives depend on this event. The World Cup has become a brand endorser enjoyed by the marketers of big fish to fry. True, this event is indeed a game of life and death. Including the marketers who must struggle to live and die in order to achieve maximum benefit from this event.