Customer's purchasing power

The traditional image of organizations and their markets with two distinctly defined actors, the buyer and the seller, dissolves into a complex network
Gummesson (1995)

Let's consider some facts in the business world and use the example of smart phones to rationalize our discussion.
1. Big customers are getting bigger posing a threat for organizations that have to constantly improvise and produce faster solutions to the customers' needs - see the developing story of RIM.
Research in Motion is the company behind the BlackBerry product line. Research In Motion (RIM), a global leader in wireless innovation, revolutionized the mobile industry with the introduction of the BlackBerry® solution in 1999. The BlackBerry product line includes the BlackBerry® PlayBook™ tablet, the award-winning BlackBerry smartphone, software for businesses and accessories. BlackBerry products and services are used by millions of customers around the world to stay connected to the people and content that matter most throughout their day. The management of RIM prepares now to launch the much delayed BlackBerry 10 operating system in the hope of making up ground lost to Apple and their iphone line and eventually Samsung and its brand new Galaxy S 111 line.

The launch of the BB10 operating system, seen as integral to the company’s ability to regain some of the market share it has lost to its rivals, has been pushed back until the start of next year, while falling sales have led to double-digit revenue drops.BlackBerry has an 11% smartphone market share in the UK, according to Ipsos Mori data for April. Apple’s iPhone is the most popular smartphone in the UK, with a 19% share, while 15% of smartphone owners have an Android device.

2. Customers are rationalising their product / services supplier base simply because "the winner takes it all"

3. Customers have become more product / services sophisticated due to media and communication patterns. Most arguably, any new product - brand information travels extremely fast and customers know safely more now about their future purchases

4. Customers prefer tailor-made solutions asking for differentiation. Who is the supplier and through which distribution channels who will be able to provide this sense, this feeling of differentiation?
5. The cost of serving customers is no doubt increasing - we now need now more and better equipped points of sale, close to the customer
6. In this sense, suppliers and customers are developing new ways of working together - thus a need for developing relational sales-reps

However, it is also true, that suppliers are still interested principally in volume generation. Whilst suppliers are somehow interested in the potential for ‘added value’, most still do not measure account profitability.
How organiztions react to the increasing customer power? 
Do we feel that the solution reflects on plain transactional marketing or shift progressively towards a relational approach focusing on the Total Value that a Customer generates for an organization?
In my opinion, management of a customer focused firm should never forget the good - old marketing recipe total customer value parameters:

TOTAL VALUE OF CUSTOMER =

[CUSTOMER LIFE TIME VALUE + RELATIONSHIP BENEFITS] X ECONOMIC RISK

In differentiating a total product / service offer compared to competition, line management has an opportunity to maximize offers to customers (e.g. the relationship benefit focus). No doubt, the relationship benefit may be at risk if the relationship goes badly. Maybe, the relationship benefit be obtained anyway, even without the relationship. However, the relationship focus increases the probability of benefit for all parts involved during the buyer - seller transaction process.

According to Pigues and Alderman (2010) there are six reasons why companies lose:
1) We do not understand the customer's perspective
2) There is not enough quantitative rigor
3) Data collected never finds its way into planning or execution
4) We rely on individual surveys versus a continuous process
5) The organization is not aligned or involved
6) There is no systematic playbook

Dried Tomatoes and Asparagus innovative production

GEOTHERMICA HELLAS LTD has been active since 1996 in Xanthi Prefecture and is based in Neo Erasmio, near the Nestos River Delta. The company's main activities focus on the primary and secondary agricultural sector. The use of geothermal energy is a key tool conferring to the company comparative advantages.Today the company boasts considerable experience and know-how in the exploitation and management of low-enthalpy geothermal fluids. It has geothermal boreholes with fluids at 60°C, enabling the production of asparagus out of season, whereas during the summer months the company develops geothermal drying and dehydration of agricultural goods activities, mostly of tomatoes. The end-products are sold under the AGRECO FARM trade name. At Neo Erasmio/ Xanthi, Geothermica Hellas Ltd has created a model drying plant for the production of dried tomatoes. The tomatoes are carefully selected from stringently quality-controlled fruit grown on the fertile plains around the Nestos River Delta, and are dried at moderate temperatures using geothermal energy. Before drying, each tomato undergoes an elaborate process of pre-washing, washing, sorting and cutting. The drying process is carried out in tunnel ovens with a total fresh fruit capacity of 10,000 kg. The hot air, which is not recycled, is introduced into the ovens in a continuous flow with a renewal rate of 700 times per hour. The air is heated to 55-58°C by geothermal fluids (from a borehole 300 metres deep) circulating in tube-type heat exchangers. The tomatoes are batch-dried, not belt-dried, with the raw fruit loaded on stainless steel grill trays. Asparagus THE KING OF ALL VEGETABLES HEALTHY AND TASTY DELIGHT WITH ONLY A FEW CALORIES The consumption of asparagus is recommended to all those engaging in mental labour as it provides the body with many vitamins and minerals. Fresh asparagus contains asparagine, a substance which "cleans" the blood and the kidneys and is useful to those suffering from anaemia and heart problems. It is rich in folic acid and helps in the division of cells during growth, in the tissue regeneration process, in the production of red blood cells by the bone marrow as well as in the prevention of cervical cancer. Asparagus contains extraordinary antioxidants and anticarcinogens with anti-inflammatory and antimycotic agents. It constitutes an excellent diuretic and has a beneficial effect on the kidney, liver and intestine. Asparagus, with its delicate taste and aroma, is considered by gourmets as a symbol of culinary refinement. It does not contain fat and cholesterol and is low in calories. Two magnificent products differentiated on the ground of Geothermal Energy in NEO ERASMIO, XANTHI, GREECE. Geographically, the area of Neo Erasmio, Xanthi, is located along the eastern banks of the Nestos river mouth and belongs to the sedimentary area of the Prinos – W. Nestos basin, which in its turn has developed in the geotectonic zone of the Rodopi land mass. The geothermal field expands around the Erasmio village, reaching Avato in the north, Maggana in the east, the Nestos River in the west and the coastal zone in the south. The whole region, covering an area of 40 km2, has been subject of geological, stratigraphic and tectonic investigations, which also covered the area's features. The located geothermal deposit which expands around Neo Erasmio, Xanthi, constitutes a typical example of a low-enthalpy geothermal field where the stratified aquifers are fed by a system of active faults in the bedrock of the Rodopi zone. Based on extensive geothermal investigation, it was established that the main geothermal anomaly expands on an area of 15-20 km2, with geothermal gradient reaching 25°/100 m and a relevant high heat flow as well as quality and chemical composition of the geothermal fluids being such that they lend special features and a special typology to the particular Geothermal Deposit "Geothermal Reservoir". Based on the systematic temperature measurements and production tests of the five active boreholes, the confirmed and immediately available for use thermal energy capacity exceeds 15 MWth. The geothermal fluids that have temperatures reaching 40-65 °C are localised at easy accessible depths (200-350 m). Their quality is excellent, a fact that renders their management easy and low-priced in terms of pumping and transfer. Common stretches of land are available for allotment in the area for the installation of processing plants as well as greenhouses.

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The top 100 most valuable global brands

The top 100 global brands shows Apple increasing its lead and the top brands getting younger, while businesses that have a purpose beyond profit - and women on the board - thrive. Companies looking to cut corners by removing budgets from the marketing department could damage the business, warns Walshe Millward Brown’s global BrandZ director. “If you cut your marketing spend you might have a short-term gain but you will have a medium and long-term loss.If the brand is still strong, the business is going to recover. The real worry is when your brand is not so strong, then that’s much harder to recover from.”

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Retailing Management Strategies and Practices - Tesco case

Tesco marketing: unclear, irrelevant and not very successful

Tesco began in 1919 with one man, Jack Cohen, a market stallholder selling groceries in London. TESCO was formed out of a merger with T.E. Stockwell from whom he purchased tea for sale on the stall. The first store opened in 1929. Since then, Tesco has expanded across the world. It now has over 2,200 stores including hypermarkets and Tesco Express outlets to meet different customer needs. As a conglomerate Tesco also offers alternative goods and services such as insurance, banking and online shopping. With net profits of around £3.4 billion worldwide Tesco has become the largest British retailer and one of the world’s leading retail outlets on three continents. Tesco’s growth has resulted in a worldwide workforce of over 468,000 employees. However, the last years were not such a success for the Retailer giant. Recently, Tesco's UK profits fall for first time in two decades.



Tesco's CEO Philip Clarke announced £1bn makeover and admited supermarket has taken 'a little bit too much away from the shopper'. Tesco has pledged to make its marketing "better, clearer and more relevant" as part of a turnaround strategy to reverse recent fortunes, but in the absence of any details all that the supermarket has proved is that over the past year its marketing has been unclear, irrelevant and not very successful.

Clarke the group CEO was cagey on the future of the Big Price Drop, introduced in September 2011, refusing to be drawn on whether it would continue to play a part in Tesco’s marketing and promotional strategy or whether it would be abandoned. There will be little surprise, however, if it is jettisoned in favour of a more holistic, brand-led approach designed to engender more trust in the brand’s overall values. Sainsbury’s has done well in recent months to promote both its values and a price message within the framework of its "Live Well for Less" brand proposition. Another of Clarke’s pledges is to return Clubcard developer Dunnhumby to the heart of the business. This is a worrying admission that Tesco ever relegated the insight and data gleaned from its Clubcard program from the core of its marketing and decision making. The fact that Tesco has been under using its Clubcard data, not just in terms of the loyalty programme, but in terms of decision making and strategic planning, goes some way to explain why its marketing became unclear, irrelevant and unappealing to shoppers.

Clarke in his preliminary results speech, outlined plans to better use the insights to create a more personal and localised business, more closely aligned to the kind of shoppers in the local area. By better tailoring products and promotions in stores to the local shoppers, Tesco will go some way to shifting the perception that it is a giant faceless corporation. The same can be said for the investment in more staff, "warmer" stores and better service that will go a long way to giving Tesco back some of the soul and human connection that it has lost in its relentless quest for growth and more stores. In fact, Tesco considers that the business depends on two groups of people: customers and staff. It appreciates that staff are unique and have diverse lifestyles outside of work. Tesco has discovered that it is important to create trust and respect among its various publics. It has found that by valuing employees, providing realistic goals and an interesting environment for them to work in, it increases employees’ motivation that has a direct impact upon performance. An indeed warm and caring business environment that a customer is looking for during his purchases endeavour. Most pragmatically, customers visit a retailing outlet primarily to buy what they desire in "optimal prices" and hence to spend some of their leisure time. In this sense, I would appreciate to enjoy my stay as much as possible. I want to have as much good time as possible during my stay at a retailer. I truly do not want to rush my "shopping therapy". This is all basic, generic to my marketing, business philosophy. We need to take good care, love both our employees and the customers. Happy and satisfied Human Resources essentially mean Happy and satisfied customers.

Retailing Management Strategies

Strategy 1 – Pursuing Geographical Expansion

Napoleon, 1811
1) Acquiring real estate at the right price - good positioning will eventually facilitate various stakeholders' accesibility.
2) Developing the Supply Chain – logistics in facilitating smooth operations. Supply chain development represents a sustainable competitive advantage for a retailer.
3) Recruiting, selecting and training the store personnel
4) Building the Brand – store equity.

Zara - the Spanish clothing brand - is a clear example of a global retailer that has gained growth and profits based on an effective supply chain approach into markets (Devangshu Dutta, 2002). Zara in fact is the flagship brand of the Spanish Retail Group Inditex SA one of the super-heated performers in a soft retail market in recent years.

Inditex is one of the world's largest fashion retailers, welcoming shoppers at its eight store formats -Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe - boasting 5.527 stores in 82 countries. The Inditex Group is made up of more than 100 companies operating in textile design, manufacturing and distribution. The group's success and its unique business model, based on innovation and flexibility, have made Inditex one of the biggest fashion retailers in the world. Their approach to fashion – creativity, quality design and rapid turnaround to adjust to changing market demands - has allowed the company to expand internationally at a fast pace and has generated an excellent public response to their collections. The first Zara shop opened in 1975 in A Coruña, Spain, a city in which the Group first began doing business and which is still home to its headquarters. Its stores can now be found in prime locations in more than 400 cities in Europe, the Americas, Asia and Africa.Zara contributes around 80% of the sales of the group concentrates on three winning formulas to "bake" its fresh fashions:
A) Short Lead Time = More fashionable clothes
B) Lower Quantities = Scarce supply
C) More Styles = More choice, therefore more chances of hitting the right customer, at the right time with the right type of merchandise.

It is pretty amazing but Zara as a global brand instead of producing more quantities per style, produces more styles-roughly 12,000 per year (Devangshu Dutta, 2002). This is indeed a Service-Dominant (See, Vargo and Lusch, 2004, 2008a, 2009) business approach. The company's management proactively listens to the customers' needs and wants and prepares new styles to fit every possible requirement. In this sense, even if a style sells out very fast, there are new styles waiting up in the line to take up the space. Observing the strategy from a services marketing point of view, it looks so much customer-oriented that it has attracted my attention.

Strategy 2 - Improving Product Selection

1) Understanding Category Profitability
2) Eliminate unprofitable products
3) Manage the product offering

Strategy 3 – Increasing Customer Value

1) Understanding Customer Profitability
2) Targeting desired customers – CRM and CVM approaches
3) Managing Customer Value

Working with a "passion for the customer" is somehow the edge of a customer-oriented business philosophy.

Should a dynamic retail organization select one of the above mentioned strategies in sustaining growth and profitability or should they develop their own "success business receipe"?

Let's be honest not all retailers - all around the globe - are interested to become a "breakthrough retailing firm".
My business advice to a mid-sized retailer is to:
A) Maintain a clear, systemic business orientation,
B) Invest human and financial resources incorporating a sound marketing infrastructure - the supply chain management is part of it and
C) Be confident that innovative marketing pays off.

TNT TV channel in Belgium Drama commercial

To launch the high quality TV channel TNT in Belgium marketers placed a big red push button on an average Flemish square of an average Flemish town.
A sign with the text "Push to add drama" invited people to use the button.

AND THEY DID.

See what happened in the video and judge for yourselves the power of marketing...

Why segmenting globaly?

We all need somehow to consider market segmentation as a business alternative. The rational for an effective market segmentation lies on two major issues:

We cannot sell all products/services to all customers and obviously we cannot afford to do that on a long-term basis.

The mass marketing definition of Anderson and Vincze (2004,pp.226) covers me theoretically to a great extend: "attempt to sell to everyone in the market assuming that demand is homogeneous; one marketiong mix is used for all customers".

A number of organizations though are getting a strong global presence in expanding their international portfolio of business. In this sense, marketers strive hard to accomodate a macro or micro perspective in their global segmentation variables.

Complicating the segmentation issues in global markets is the need for internationally perfoming companies to make strategic positioning decisions in an increasingly competitive and transparent marketplace in order to leverage brand equity and achieve economies of scale.

In short, the strategic necessity does not stop at the selection of desirable market segments, but also includes the need to position brands effectively relative to the market segment (Hassan and Craft, 2005).

Levitt (1983) introduced the concept of “segment simultaneity” in his thought-provoking article describing the globalization of markets. He described this phenomenon as the "proletarianization" of global markets where everyone, everywhere wants to have and enjoy world brands - for example, consume McDonalds burgers in China or regularly wear/buy clothing from the Spanish retail giant ZARA. What he described, in fact, was the existence of similar market segments and consumers in different countries for whom low price and high quality would be common criteria for making buying decisions. Is that though the case?
Do we think globally and act glocally?
Can we convince global consumers of the necessity to buy P&G products worldwide?

In fact, market segmentation strategy must be examined to determine the best bases for global brand positioning. Global consumer markets are best understood as groups of buyers who share the need and desire for a product and the ability to pay for it, not just those who share a national border (Hassan and Craft, 2005). We should not forget that buyers in a given - clearly defined market segment seek similar benefits from, and exhibit similar behavior in buying a product. Although these consumers may live in different areas of the world and come from very different backgrounds and value systems, they have commonalties in association with a given global brand. Many of these similarities are associated with the brand image and the lifestyle it projects (Luqmani et al., 1994).

To be continued...

How to provide high school students with career orientation?

Who is really apt to provide competitive career orientation and constructive advice for high school students and what are the means in doing so?

I feel like commenting on this socio-economic question, following recent talks with parents and education providers within a strong recession period, as we all go through for five consecutive years in this country.

No doubt, the selection of a trustworthy, reliable higher education institution parallel to employment opportunities and focus, is in my opinion, a task that has to be allocated to family as the major pillar of socio-economic stability status.

It is the father or the mother who should work systematically and scientifically on examining and cultivating students' skills and competences. In doing so, parents alone need to work collectivelly with their sons and daughters (e.g. through team work and involvement) examining current business trends, career opportunities within developing industry sectors and employability parameters. This is an indeed heavy research study. Obviously, it is parents who should devote time and effort in systematically disclosing at an early stage these special skills and competences that could later develop to professional talents.

On top of this painful process of disclosing and cultivating a set of competitive skills and competences, parents should examine the development of motivation best practices for their kids.

Motivation is the actual term used to describe those processes, both instinctive and rational by which people seek to satisfy the basic drives, perceived needs and personal goals which trigger human behavior.

Therefore, parents should consider the initiation and application of a basic motivation model for career orientation. In view of this model, parents following students' personal, emotional, or even social status needs, develop a set of stimuli aiming at triggering positive behavioural responses leading to job satisfaction.

Most pragmatically, as parents, we need to extract, disclose and apply a set of motivational stimuli providing the basis for a succesfull and focused career orientation. This is again a painful and hard-working process for parents. Otherwise, reputable higher educational institutions will keep on producing more unhappy, unfocused graduates who do not really like their professions and former studies.

Why do we need to add more people to lists of non-specialized and unemployed personnel?

All we need is to integrate higher education with clearly identifiable skills and competencies.

All we need is team work and involvement between parents and students.

Both are key words for:
a) The disclosure of students' skills and competences and
b) The set up of motivational parameters - stimuli to enhance and support future career orientation.

When Football becomes a national Brand Ambassador

In 2006, Travel and Tourism (T&T) contributed 10.3 percent to world
GDP, had 12 percent of global investments and 8 percent of all jobs (WTTC, 2007; Arnold, 2007). Recently, Travel & Tourism forecast to pass 100m jobs and $2 trillion GDP in 2012. Travel & Tourism is set for a milestone year as the industry’s direct contribution to the global economy is expected to pass $2 trillion in GDP and 100 million jobs. According to research by the World Travel & Tourism Council (WTTC), the global Travel & Tourism industry will grow by 2.8% in 2012, marginally faster than the global rate of economic growth, predicted to be 2.5%.
This rate of growth means that Travel & Tourism industry is expected to directly contribute $2 trillion to the global economy and sustain some 100.3 million jobs. When the wider economic impacts of the industry are taken into account, Travel & Tourism is forecast to contribute some $6.5 trillion to the global economy and generate 260 million jobs – or 1 in 12 of all jobs on the planet.

Competition is fierce and constantly changing with 194 nations clamoring for a share of the tourist’s heart, mind and wallet. This indicates a need for a more strategic approach to branding as brand position leads to greater economic value (Matear et al., 2004; Davis,2002), growth and welfare. On the other hand, a key premise of nation branding is that "the reputations of countries are rather like the brand images of companies and products, and equally important" (Anholt, 2007, p. xi). In a similar pace of thinking, Branding is now widely acknowledged as a potent tool for companies to use to their advantage in achieving competitive strength in the market, as it generates value both for the producer and consumers (Keller, 2003). Clearly, the strategic power of brands has triggered a plethora of studies in the field, with the aim of exploring branding from various perspectives, enriching understanding of the issue through the development of a variety of concepts such as brand image, brand identity and brand personality (e.g. Aaker, 1996; Carpenter et al., 1994; Kapferer, 1992; Upshaw, 1995).

What if Footballers (e.g. Real Madrid) were presenting themeselves as part of an integrated communications campaign aiming at generating and enhancing a brand competitive image that of Madrid, Spain - a country with immense financial issues.

Legendary football club Real Madrid had signed a deal to promote Spain and Madrid as tourist destinations. The marketing campaign “Visit Spain, Visit Madrid” shows all of Real Madrid’s star players, like Cristiano Ronaldo act as "Brand Ambassadors" for both the Spanish capital and the country as a whole.

What indeed wonderful news for a Real Madrid fun!
Real Madrid football club to sponsor the Mininsty of Industry, Tourism and Commerce as well as the Community and City of Madrid.

Casillas, Ramos, Kaka, Di Maria, Ozil and Benzema were all on hand as Real Madrid unveiled its latest sponsorship deal with the Ministry of Industry, Tourism and Commerce as well as the Community and City of Madrid that will see the club promote Spain at both international and domestic levels under the slogan "Visit Spain, Visit Madrid".

Florentino Perez:
"Our history and legend have made Real Madrid a universal team, but its grandeur begins in Madrid and Spain. For over 100 years it has been one of the most relevant references of this country and we have proudly carried the Madrid name around the world. We humbly accept this responsibility and we will carry it out with hard work, talent and commitment; values that identify with Madridismo."

Community VP Ignacio Gonzalez:
"We are grateful to this club because it will wear the Madrid and Spain logo everywhere it goes. We are also fortunate in that this Community boasts the best team in the world."

Mayor Alberto Ruiz Gallardon:
"This city's most important asset, and that which we feel most proud of, is Real Madrid and its values, which is what we want to promote around the world. In large part it belongs to all Spaniards, because you are ambassadors of Spain."

Minister of Industry, Tourism and Commerce Miguel Sebastian:
"Real Madrid is an icon of Spain. It is a winning team and one of the most visible clubs on an international level, but what we must promote is its culture of hard work and the excellence in its genes."

Tourism authorities expect the three-year agreement will reach a potential audience of over 300 million people because of Real Madrid’s worldwide fan base. A Spanish Tourist Office spokeswoman had commented after the agreement was secured: "This is a ground breaking agreement in which both Madrid and Spain will be promoted internationally through one of the most renowned clubs worldwide promoting both tourism brands to all corners of the globe". He emphatically stressed that: "The agreement, valid for three years, will allow the public institutions to use the main players of the club as "Spain and Madrid Brand Ambassadors" in various international advertising campaigns. The agreement also provides for the utilisation of advertising space in each of the official matches in the league and the Cup to be held in Santiago Bernabeu Stadium organised by Real Madrid.”

In parallel, the Valencia Region Tourist Board has launched a new five million euro (£4.4 million) global marketing campaign to promote the destination – including the Benidorm, Valencia Terra i Mar, Costa Blanca and Castellon brands – both nationally in Spain and internationally in key markets including the UK.
Using the strapline "Intense experiences must be shared", the two-year multi-media campaign is centred around the traveller as generator of content and key influencer through the use of social media. It combines innovative online, social media and street marketing with traditional media advertising and Public Relations best practices.

Regional Tourism Minister , Belen Juste, explains: "Travellers nowadays like sharing their holiday experiences with others on Facebook, Twitter, YouTube or Flickr; they read other people’s comments or travel blogs before planning their holiday; and use their mobiles to stay informed and connected before, during and after their trip. Our new campaign reflects all this, building on some of the initiatives that we have already introduced, such as blogger fan trips, mobile apps and advergames".

Nation Branding in two different rather innovative forms.
Most significantly, both branding approaches give us an indication that the classical, traditional communication campaigns in Tourism have long passed away.

Nations have got a precious product - tourism - to sell and they need to do it well if and only if they still want to remain competitive in such a fierce market.!!

Application and Development of Trade Marketing Strategies - why?

Defining Trade Marketing would be a good start to this post since many would possibly argue the need for the development of such a department - job post(s) within a competitive organization.

Therefore, Trade Marketing is a clear B2B business approach aiming at satisfying concurrently the end-user with tailor made marketing activities and the Trade as business partners.

This is a rather personalized business activity, a Service-Dominant approach acccording to Vargo and Lusch, (2004, 2008, 2009). A business activity that has as a single goal, to plan and program Distribution Channels and thus key accounts with the same effectiveness and efficiency that an FMCG firm would carry out Brand management.

Trade marketers place a strong emphasis on single customer returns, whereas consumer marketing experts focus on product returns. More specifically, in view of Trade Marketing corporate orientation Trade Marketers would emphasize strongly on annual deals with the Trade regarding bargained position per brand (Stock Keeping Unit) and build marketing intelligence systems with an emphasis on analysis per customer. Literally, Trade marketing gets parallel to Consumer Marketing - A dual, marketing - business approach.

Why would a competitive FMCG firm initiate and implement a Trade Marketing business approach into markets?
For a number of reasons:
A) Distribution Channels tend to concentrate
B) There is a radical development of the Final Customer Purchasing Process and
c) Mass Marketing Strategies have a high operational cost and doubtful results

The need for improvisation and launch of unique tailor made Trade Marketing activities represents a generic, commercial status development, moving from the traditional Key Account Management sales approach to a "sell-in" business approach directed at providing a Relationship Management perspective both to our busines partners - the Trade and the markets.

Fage - Greek Yogurt Branding Strategy

The yoghurt production and distribution facility of Fage USA Dairy Industry in Johnstown, New York, US, is undergoing expansion. The plant produces several varieties of its Greek-style yogurt products, for which there is huge demand in the US. The products are marketed across the US and distributed through natural and speciality food stores and supermarket chains. The plant opened in April 2008 at an investment of $148.3m, it employs more than 170 people and has a capacity to produce 85,000t of yogurt annually.

Fage USA Dairy Industry is a subsidiary of Fage Yogurt, a Greece-based yogurt company. Fage Yogurt operates three plants in Greece and is a major producer of yogurt, cheese and milk dairy products. The state-of-the-art yogurt Fage USA production facility, has a floor area of 145,000ft². The two-storey white-coloured building, houses four filling lines and a warehouse and includes four packaging lines, with a fifth line installed in 2011. The Fage USA yogurt plant is equipped with modern technologies and is designed to achieve Fage's authentic recipe. In April 2011, a $26m expansion plan was approved by New York's Planning Board for an additional 19,000ft². The space will be used for the installation of two bays to receive milk and for additional dry storage.

Marketing, as a business activity, aims at satisfying human needs and wants through competitive, differentiated products. The strategic brand development effort of FAGE SA in an international business environment, is of outmost importance for the staggering Greek Economy.

"TOTAL", a flagship brand of the FAGE portfolio, hit UK supermarket shelves in the early 1980’s. It was the first strained FAGE yogurt to be successfully launched in Europe and the numbers of those who love its indulgently rich texture and taste have continued to grow ever since.

Interestingly enough, and as part of competition, the French Dairy firm Danone launched their Greek-style yogurt product range and developed their integrated communications plan, in various European countries.



In parallel, Chobani, a turkish origin firm, has launched fruit-based Greek yogurt style products for the US consumers. A strained yogurt market has been developed for international consumers.

Is it the Greek FAGE, the French Danone or the Turkish Chobani who will manage the largest market share? In my understanding, the niche is there, a significant business opportunity. All it takes is innovative Marketing.

Channel Design Decisions

How do we come to decide upon the right or wrong channeling decision?

Obviously, any marketing activity that we design and implement has no value whatsoever, unless the product is placed on the shelf. In fact, proper channeling reflects on the realization of our entire marketing plan development. Truly, such a decision is critically affected by a number of parameters that have a direct impact upon our selection process;
A) Analysing Consumer Needs. We really need to know what do customers want, what do customers expect out of the channel?
For example, would a customer buy a car from TESCO?
B) Setting Channel Objectives has a strong impact upon our speed in product delivery (e.g. Optimum Stock Turnover Rates), care about the existing and prospective customer (e.g. Exceed optimum customer care levels) and cost measurement. These are three factors that need to be strongly considered by line management. We obviouly want our supply chain management best practices to be our competitive advantage and not a debatable issue.
C) Identifying major alternatives regarding the types and numbers of intermediaries and hence their responsibilities.
D) Evaluation of alternative channeling decisions on the ground that the conusmer has the product available when required at the right price involving the right blend-set of Stock Keeping Units (SKU's).
E) Adaptation of the channeling selection involves economic and control parameters. In many cases it is not what we desire in marketing but what we can afford and how can we eventually control performance effectivenes.

Does the channeling selection decision-making process has a direct impact upon Trade Marketing Strategies best practices?
It is soon to be discussed

Channeling and the effect on Marketing

An introduction to channels of distribution, by Brian K. McCarthy, December 2010

A relational focus sales-rep needs to be prepared...

A relational focus sales-rep needs to be carefully prepared before arranging and finally implementing a sales meeting with a prospective, target customer. Truly, a relational oriented sales-rep is more of a competent, skilful "social status type" of a business entrepreneur investing on the development and enhancement of Long-Term Relationship Marketing practices (see previous posts). As such, planning, organizing and implementing sales action represent necessary business conditions before the actual implementation of any Marketing / Sales activity. Therefore, we may well say that a sequential Segmentation - Target Marketing - Positioning and at the end of the day Brand development process reflects accuratelly on Relational Personal Selling.

Segmentation - Target Marketing - Positioning - Brand Development.
A relational oriented sales-rep needs to perform systemic archiving.
In this sense, sales-reps need to have a systematic, fully controlled Marketing Management business approach to their carefully selected sales points (for example, clear market segments), customer categories identification (e.g. target groups of interest), areas of focus (e.g. market positioning) using marketing intelligence practices(for example, statistical data, name day calendar, work calendar).

Sales-reps' work organization
Efficiency and effectiveness requires best use of time, money and resources. Thus, a relational oriented sales-rep organizes systematically his/her contacts by:
A) Developing and safeguarding a daily, weekly and monthly program allocating optimum resources in an efficient manner
B) Preparing a competition report in accomplishing demanding sales quotas
C) Preparing a competitive "book" of material containing information that might resolve sales issues during the sales encounter process. For example, product / services brochures, flyers, samples, price lists, competition material, invoices, order sheets.

The actual, core job of a relational oriented sales-rep is to satisfy in parallel- performing on a golden edge - the demanding sales goals' performance along with the development and maintenance of a fruitful, empathetic business relationship with his customers portfolio. This a hard and demanding job approach but it pays in the long run.

The fifth ‘P’ of marketing: premium shopper experience

Ken McMeikan, the chief executive of Greggs ("the home of fresh baking")says: "If people can buy goods as easily online [as they could in-store], retailers will have to think about why customers would come to their shops. The service in shops has to be so good that it will encourage people to browse and buy in-store."

Sales-reps at the front really make the difference. It is the sales-reps who deal directly with one of the only things that makes money for a company: customers. Recent research by agency Iris puts forward the idea of the ‘outsellers’, those retailers which consider the fifth ‘P’ of marketing: premium shopper experience. It cites an Accenture study showing that a quarter of shoppers have gone to another retailer because of a bad experience and just 8% would accept poorer customer service if it means they get a lower price.
With M&S launching an online outlet shop and Tesco trialling virtual fitting rooms via Facebook, it will be interesting to see how retailers also focus on making shopping in-store a brilliant experience.
Greggs - a retailers' case
After more than 10 years of delivering yeast and eggs to local families so they could bake their own bread, John Gregg opened a small bakery on Gosforth High Street in 1951. With a single shop and bakery at the rear, Greggs began to bake superb quality bread, using flour milled from specially selected wheat for that distinctive Greggs taste and texture. Following the death of his father, Ian Gregg took over the family business in 1964. Under Ian's leadership, Greggs developed a reputation for good quality and great value. Greggs also began to grow by acquiring regional bakery retailers across the UK and by the 1970s there were shops in Scotland, Yorkshire and the North West. By the 1990s competition was strong as supermarkets began to make their mark in the bakery market. But Greggs' continued to focus on their strengths: developing fresh, quality food-on-the-go at great value prices.

Today, Greggs has over 1,400 shops. The plan is to open 600 new shops over the next few years. "We still bake our delicious bread every day in our own local bakeries. Our bakers are meticulous and they understand that baking a great loaf is all about precision, timing and experience. Quality is a priority and the people with the friendly faces you see behind the counter at Greggs, expertly make our tasty sandwiches in store every day, using our own fresh bread. And our legendary delicious golden sausage rolls and pasties are all baked on the premises in small amounts, throughout the day, for maximum freshness - just one reason they call us the home of fresh baking".

The Premium shopper experience remains a "hard to compete" parameter for the faceless on-line, abstract competition. In my understanding of marketing, I always fancy a smiling, knowledgeable, non - stereotype front-line employee who will provide me with a quality product.

How do we recruit and select effective sales-reps in services?

Being involved into Sales Management for a long period of time primarily as a Line Manager and further as an Academic, I strongly believe that there are "needed, required elements" in producing an effective and efficient Sales-Rep in services - the sales-reps' identity in services.

The identity of an effective sales-rep is characterized by a set of inherent features and a set of acquired features.

An combination of the two sets leads to a competitive sales-rep's personality which along with managerial abilities provide Administration with an Idealized Sales-reps' Identity Framework. One may argue that the below indicated lists are representing a realistic framework that applies in every industry / market. This is quite true. One should not forget that an idealized design depends on organizational inputs (e.g. predefined corporate set of skills and competences) and organizational outcomes (e.g. performance metrics, behavioural issues). For the sake of this discussion, we need to agree that selection and recruitment of talented sales-reps, largely depends on corporate expectations, organizational support, sales infrastructure and sales / marketing orientation parameters.

Identity of a Sales-Rep - Inherent features:
a) SELFISH URGE FOR SALES GOALS ACCOMPLISHMENT
b) COMMUNICATION / INTUITION
c) TEAM WORK
d) CREATIVE PROBLEM SOLVING
e) SELF-RESPECT / SELF-CONTROL
f) SYSTEMIC ORGANISATION
g) ENTREPRENEURIAL SPIRIT

This is a set of inherent features that I would personally look for plus the "sparkle in the eyes" of the candidate for a sales-rep's position. This is indeed hard to find and even harder to develop. However, as a "people-oriented" personality, I strongly believe that we could develop a set of ACQUIRED FEATURES such as:
a) POSITIVENESS
b) EDUCATION
c) EXPERIENCE
d) KNOWLEDGE OF THE MARKET / PRODUCT
e) POSITIVE ATTITUDE

It really requires a substantial business effort, money and time in building a competent sales-force team. Recession times call for few, yet competent sales-reps in accomplishing corporate set demanding sales-quotas. Nothing should be left to coincidence. We need to plan and implement Marketing with a long-term perspective investing into people - the human asset capital of a services firm.

Branding and education - two sides of the same coin?

Does it seem appropriate, ethical, worth paying to develop Marketing tools - Brands especially designed for School children?

Barclays’ Bank relationship with schools goes back several years, through initiatives such as its Money Skills programme and direct financial support for schools. The Bank recently launched a new scheme supported by UK Government. The scheme provides financing and resources that support the government’s recently established free school and academy system to the tune of £1.25m over the next three years. This is a programme which helps young people to build the skills, knowledge and confidence they need to manage their money more effectively.

Clearly, Barclays aims at boosting children’s financial management skills in an age of increasing debt dependency and also improve the quality of schools’ teaching resources.

Barclays Money Skills has been developed in partnership with leading UK charities and is delivered by specialist community workers and Barclays employees in a range of settings, including one-to-one sessions and group seminars. The programme tackles topics such as opening a bank account; budgeting, saving and spending; and gives practical guidance on what to do when something goes wrong.

The Bank's management has invested £15 million in this industry-leading initiative, and have recently announced new partnership projects with three leading youth charities - Action for Children, the National Skills Academy for Financial Services and the National Youth Agency - to help them reach one million people with the programme by 2012.

For example, attending higher education presents new financial challenges for many students, and the learning curve can be steep. Although students should be concentrating on their University work, many are preoccupied by concerns over money. Barclays Money Skills ‘weeks’ have been designed to give students an awareness of personal finance issues and to provide them with some tools to control their budget. By strengthening students’ financial skills, confidence and knowledge, Bank aims to reduce their financial stress and increase their chances of achieving their education goals. In 2011, 150 colleges and 90,000 students participated in Barclays Money Skills weeks, through a partnership scheme with the National Skills Academy for Financial Services. The learning weeks engage young people in money management issues, through events and tutorials at their local college, to develop their financial knowledge and skills. Barclays employees play an important role, by helping facilitate the sessions and by sharing their professional expertise in the tutorials and workshops, as well as talking about their experiences with students interested in a career in the finance industry.

Luke Jooste, education sector Bank head explains: "Barclays spent time with recognised experts from the sector to understand whether we could support education on a broader scale. Through those discussions, it became clear that Barclays’ people, capabilities and scale in the UK were well placed to support some of the needs of the schools involved, so we put together a proposal that we took to the secretary of state-which is largely what we have now launched". Jooste insists Barclays’ increased involvement comes from an educational, rather than a brand marketing need. “This is a Department for Education initiative, not a Barclay’s initiative. We have found the right way for us to support the educational reform movement and we are happy to have found a way to contribute that the schools told us would be highly valuable. But this only works if it is led by the government. We have absolutely no intention of using this as an opportunity to promote Barclays,” he claims.

The National Union of Teachers in UK still has reservations about brand involvement, but Jooste is insistent that all control remains with the frontline educators. “Nothing from this programme will be put to use unless the administration of a particular school is comfortable that it will be beneficial to their pupils,” he says. “The relevant administrators and teachers will determine the precise execution at any given school, so there is no chance that the educational integrity of what those schools are doing could be compromised.”

The return on investment for Barclays is clearly a long-term strategy, with any immediate benefits being largely in the CSR domain. The bank has in place a number of soft metrics in the short term to determine the project’s success, including the amount of material downloaded to support in-class learning and the number of schoolchildren who acquire money-management skills. Jooste adds: “Over the long term, of course, we will be looking for signs that the schools and students we have supported through this initiative achieve more as a result of our engagement. That will, of course, be difficult to prove analytically, but we will watch for even qualitative signs.”

Is that a challenging idea for Banking organizations and education publics?
Thinking and acting Marketing helps...

Best Retail Brands 2012

I have got something good for you today. Research pays off. This is the list of Best Retail Brands 2012. The list details acheivements of the Best US, UK, German, French, Spanish and Asian Retail Brands.

Interbrand started in 1974 when the world still thought of brands as just another word for logo. Jez Frampton - the Global Chief Executive of Interbrand claims "We have changed the world’s view of branding and brand management by creating and managing brands as valuable business assets".

The Marketing Relevance Imperative

Peter DeLegge claims that confronting an ad-averse audience, how have major advertisers and ad agencies responded?

With more unwelcome, and in some cases underhanded, tactics – pandering ads, manipulative word-of-mouth campaigns, contracts that require a publisher to pull their ads if the publication prints a negative editorial about them...

As Marketers, we’re all in the same boat: how do you get heard above the din?
Where do you go,
What do you do, when the volume’s already at maximum 10?
Well, if you have the clout – and believe “He who succeeds shouts the loudest” – you:

- Run something shocking at a moment of maximum exposure,

- Try to control (i.e., threaten) the presumably impartial media,

- Claim it’s in all the service of branding.

Is that all ethical?

In my opinion no. We are ALL RESPONSIBLE for setting the rules of the game.
We cannot avoid to be legacy marketers. After all, what counts most is trust and rapport that you incorporate in your buyer - seller relationship. This is primarily one of the reasons that transactional type of Marketing is long overdue.

Characteristics of B2B Marketing

It might sound doubtful to readers but Marketing theory produces a list of characteristics for Business to Business Marketing.
In my opinion, the more advanced the Marketing intelligence systems, the more complex the business, human relationships, the more we will be focusing on making these "moments of truth" during the encounter service between the buyer and the supplier, more unique, more trustful oriented, more performance oriented. For the sake of the discussion, let's start to list the B2B Marketing approach characteristics:

1) Nature and size of customers: Typically, we have a small number of potential customers, each customer therefore turns to very significant account.

2) Complexity of buying: The Buying process is more complex, as well as the number of people involved in process.

3) Choice Criteria: The customer may have economic and technical choice/ selection criteria, as well as ones similar to end-users.

4) The Risks: The Contracts of agreement between the buyer and the seller are often signed before a product is made. Any assumptions made can be damaging for budgeting / expenses incurred in the process.

5) Buying fits specific requirements: We usually have precise requirements for incorporation into eventual product – or narrowly defined market research or advertising brief.

6) Reciprocal buyig: Organizatiosn are partners, probably selling to each other or even develop R&D for each other. Such a business proposal links future expectations and performance outcomes.

7) Derived Demand: Demand is passed back up the supply chain. For example, the demand for iPods increases the demand for small hard-drives.

8) Negotiations: Prices and conditions of sales are determined by negotiations.

These characteristics of B2B Marketing business approach simultaneously reflect on corporate Marketing strategies and implementation best practices.

Axe anarchy commercial - do we need ethics in marketing?

Do we need ethics in Marketing and communication is a question that bothers me most in modern, integrated communications. Clearly, the role of Marketing is to attract attention and this is what the new commercial campaign aims to accomplish. The Brand - with a soulmate, love music background truly appeals to love at first sight that eventually causes chaos everywhere and around them.

How about this specific commercial presented allover in Athens Metro, the www.yahoo.gr wall paper and other media with the following logo:
Axe - New Axe Anarchy for him and for her - Causes Chaos. This is obviously the case of a global brand campaign launched simultaneously to the days of riots, anarchy and chaos in Athens, Greece (last week-end).
Is this irresponsible advertising or a sign of our times?
Where is the ethics part for the Athenians that travel downtown by the Metro to observe burned neoclassic buildings, vandalisms and devastation in parallel to the launch of the specific commercial. What are the hidden connotations for the inhabitants of a city that has paid so much Chaos and Anarchy?
I resent to such business practices. In my opinion, we need to be careful in localization of global Marketing Management and pay attention to timing. One might say, well this business my friend. We are publishing for profits and market share development. True, however we need to pay close attention to local environments.

Unilever: “Marketing needs to be noble again”

Marc Mathieu, senior vice-president of Marketing at Unilever Group and the architect of its recently introduced “crafting brands for life” marketing strategy, believes that marketers should get back to the origins of the discipline as a way to drive social progress as well as sales.

He says:"In the last few decades of the 20th century Marketing has become selling for the sake of selling, but at its inception, marketing was inspired by the Henry Fords, the William Levers of the world - people with a vision to bring products to people that could create progress and improve lives".

My opinion is that Marketing is a profession that a competive organization cannot simply live without. It is all about peoples' creative minds that make a substantiated differentiation and as such a successful brand of tomorrow largely depends on creativity, adaptability and need for change.

History of the Apple Logo - a branding success

Internal Marketing Orientation

Internal Marketing is best defined as "training, motivating and communicating with staff to cause them to work effectively in providing customer satisfaction; more recently the term has been expanded to include marketing to all staff with the aim of achieving the acceptance of marketing ideas and plans" Jobber, (2007).

Berry et al. (1976) were the first academics that first introduced the notion. Since its introduction, the term has been used to describe the use of marketing techniques to align the service operations of an organisation with the needs of customers. A prevalent view amongst internal marketing scholars is that satisfying service employees is integral to delivering quality services; consequently, employees are a legitimate focus of internal marketing activities.

However, isn't that the notion of a sound Human Resources Management and Development operationalization?
Do in other words Strategists - Marketers plan to integrate - align HRM in their corporate activities ?

Market entry strategies - the pioneer takes it all?

Undeniably, a strong competitive as well as differential advantage accrues from a "Pioneer Market entry strategy". Some of the potential sources of success for an innovative, pioneering firm with a clear Marketing orientation are briefly summarized as below:

A) The firm's Marketing management has a first choice of market segments,targets and positions. Most pragmatically, we live in a competitive, saturated business world. Saturation could be best defined as few players controlling a large percentage of the market or too many players controlling small bits and pieces of a market. A pioneer firm has the "once and for all" opportunity to develop product-service business offerings with attributes most significant to the largest customer segment of the market. Moreover, a pioneering firm is able to promote the critical attributes that favor its brand. In this sense, such a firm may create a substantial competitive / differential advantage regarding equally active firms for a long period of time.

B) A pioneer firm sets the rules of the game regarding a broad scale of Marketing best practices (for example: development of unique distribution network, pricing schemes). This is indeed a hard business reality for following firms. The pioneer, innovative firm truly sets the benchmarks for everyone else to follow in the long run. No doubt, customers listen first to the experts - pioneers that have invested financial and human resources addressing their needs and wants.

C) There are considerable financial benefits for the pioneering firm. Clearly, the market pioneer firm can gain accumulated sales and hence considerable return on investment (for example: market share in volumes and values) and experience and thereby decrease per unit expenses faster than the following firms.

The Consumer decision-making process

In understanding customers a behavioural approach views the consumer decision-making process as a problem-solving or need-satisfaction process.

According to Blackwell et. al., (2003) consumers may eventually pass or in some cases by-pass through series of steps in deciding which product/service solution may adequately satisfy their needs. In this respect, a consumer goes fast through the decision-making process steps namely: Need identification / Problem awareness, Information gathering and Evaluation of alternative proposed solutions.

These are exactly the stages, that Marketing management identifies and establishes, maintains and enhances and when necessary terminates relationships with customers and other stakeholders, at a profit, so that the objectives of all parties are met, and that this is done by a mutual exchange and fulfilment of promises” Grönroos, (1994).

In fully claryfing the RM paradigm two major academics Tzokas and Saren, (1996) have contributed with a sound Relationship Marketing definition. In their view, "RM is the process of planning, developing and nurturing a Relationship climate that will promote a dialogue between a firm and its customers which aims to imbue an understanding, confidence and respect of each others’ capabilities and concerns when enacting their role in the market place and in society".

Clearly, a relational-oriented firm focusing systematically on the initiation of such a dynamic and reflective relationship climate makes the customer decision-making process regarding the selection of the appropriate product/service solution a product of effective concensus between sales consultants and buyers.

How does Consumer Behaviour changes in a recession

A different view by a Marketing Expert - Rory Sutherland, Vice-Chairman, Ogilvy Group UK!!

Understanding Customers

The buyers' behaviour towards brands/product groups is a major issue of concern for Marketers in a largely competitive environment.
This is even more the case during a strong recession period that the Greek Socio-economic structure goes through. We have learned by theory that understanding customers goes through a number of questions and a number of phases. Primarily, in forming a sound Marketing strategy Marketers should give realistic, validated answers to the following generic questions:
What are customers' choice criteria?
How do customers buy?
When do customers buy?
Where do customers buy?

In justifying theory and according to Horton (1984) there are three stages of learning that customers/buyers normally progress sequentially. It is significant to answer if these three stages still exist in an economic environment where strong recession prevails (for example: Greece, Portugal, Spain and Ireland).

A) Routinized Response Behaviour. In implementing buying decisions in a routinized almost automatic way, the buyer must have "fully" (e.g. Knows enough, through application of corporate integrated communication to make acceptable purchases with no major effort) learned both the product group and the alternative, existing brands that would give them an almost instant purchasing decision.

Ultimately, this is the "good scenario" for the striving Marketer or maybe not?

In my understanding such a buyer's behaviour may cause trouble since Marketing management is somehow left in inertia. The creative part of Marketing is not present but Shareholders might be happy with Short Term financial goals accomplishment. This is more the case in recession periods. In my opinion, RRB does not lead anywhere.

B) Limited Problem Solving. In LPS the buyer has a product group concept that is well learned but inadequate brand concepts, so that further information is required before any purchase.
Do we desire to go through LPS?
Yes, we want "educated", Long-Term, loyal and commited customers.
Yes, we want people to select our brands with significant concept attainment.
In this sense, I suggest the adoption of strong co-creation and satisfaction of customer's needs and wants through the initiation of Relationship Marketing applications and practices. The role of Sales-Reps in this scenario becomes imperative for success. The communication practices shift to more of a Service-Dominant approach, instead of the Transactional Goods-Dominant approach (Vargo and Lusch, 2004, 2009).

C) Extensive Problem Solving. In EPS the buyer does not have a clearly defined product group. There is not even an established product group concept that the customer could eventually evaluate and conclude on purchase amongst different brand offers. This is another case that Relationship Marketing practices are needed. The customer should have a tailored-made corporate support where service quality is of outmost significance.
One may say that EPS presents significant obstacles to effective communication between bueyr and seller. True, we should consider though other patterns of communication (for example: social networks are now critical in bringing decision making information to customers in literally no time).

In concluding, according to theory there are three different learning stages that elicit different buyers' purchasing behaviour. It really worth the effort developing the necessary Marketing ammunition in tackling complex purchasing situations. The recession is in fact an era that competitive firms should reconsider Marketing strategies and tactics.

Developing an "environmental set"

What is a corporate "environmental set"?

The organisations that make-up a firm’s micro-environment are referred to as the “environmental set”. Most fundamentally, the environmental set of a customer-oriented firm is truly dynamic since membership and relationships between them change over time, hence the need for continuous environmental scanning and effective use of marketing intelligence.
In this sense, marketing intelligence practices (e.g. adoption and implementation of Customer Relationship Management ) becomes essential for sound marketing practices for all existing and potential "customers".

We should not forget, that all existing and potential organizations within our environmental set are prospective customers. For example, the adoption and implementation of sound CRM systems assists Marketing management in optimizing profitability, revenue and customer satisfaction by organizing the enterprise around customer segments, fostering customer-centric behaviors and implementing customer-centric processes (Gartner, 2004).

In view of the evolving and dynamic business relationships, Marketing management of a customer-centric firm serves more than the direct consumer market - as a selected market of choice. A firm equally serves business markets, reseller markets (e.g. distribution channels management) and even Government influence markets.

How can a Fast Food Service firm implement well a customer focus orientation?

In a demanding, competing world, all that a passing customer would expect from a Fast Food Service Firm would be to accurately implement customers' orders and complete business transactions - a totaly transactional business approach.

In view of my personal experiences at the Solonos (downtown Athens) retailing outlet of Gregory’s Food Service Group, the three front-line employees serve customers in an unpredictable, customer-oriented approach. This exceptional customer service turns to a differential advantage for regular passing by customers that turn to loyal and commited simply because they are served on a "first name basis", with a smile, accuracy and speed.

Well done guys!!

Keep on showing some people how to implement expensive marketing strategies well.

I quote from their web site: "As a company, we rely on our customers and that is why we must appreciate their current and future needs, satisfy their demands and meet their expectations". www.gregorys.gr.

Product-market coverage strategies

Would the adoption and implementation of competitive product-market coverage strategies reflect on modification of a sound Marketing-mix of an organization? Obviously yes.

For example an organization that adopts and further implements an Undifferentiated product-market coverage strategy chooses to ignore market segments and goes after the whole market with one offer. The "One size fits all"–focuses on what is common between buyers, rather than what is different.

On the other hand, a firm that follows a Concentrated product-market coverage strategy goes after a large share of one or a few markets. Practicaly, this happens when a firm has experience or expertise in Marketing product-services to these segments.

Finally, a firm selects and implements a Differentiated product-market coverage strategy when Marketing management decides to target several market segments and designs separate offers for each. Typically, this product-market coverage strategy creates a stronger position with each market segment and more sales than Undifferentiated Marketing which is broader and more vague.

What is Positioning or Brand Positioning?

Positioning reflectes on the choice of target market (where the company wishes to compete) and differential advantage (how the company wishes to compete) Jobber, 2007.

In my undertanding positioning is a cognitive, continuous and systematic perceptual process. In this view, Marketing management (as a clear ideological perspective) works intensively to connect - differentiate the product/service to the understanding of the customer (see previous posts in competitive differentiation). Obviously, such a dynamic process involves much more than product or even better brand positioning. A combination (e.g. a refreshing coctail) of four initially parameters are amongst some of the criteria by which consumers distinguish a difference between competing offerings.

A) Product differentiation
B) Services differentiation
C) Human Resources differentiation
D) Image differentiation

Market Segmentation and Targeting - a revealing interview

Marketing Strategy implementation

Essentially, until the implementation process reaches a satisfactory level (e.g. in terms of accomplishing performance standards) a Marketing strategy remains a plan not an operational reality. This particular observation led Gummesson (1974) to conclude that the ability and strength to execute a decision is more crucial for success than even the underlying analysis.

A review of the pertinent literature is indicative of an undue bias toward formulation almost to the neglect of implementation (Noble, 1999; Noble and Mokwa, 1999; Piercy, 1989; Walker and Ruekert, 1987).
Bonoma and Crittenden (1988) attribute this literature imbalance to a long held, misguided assumption among both academics and practitioners that Marketing Strategy implementation inevitably supersedes formulation provided the plan displays analytical sophistication. Second, what empirical evidence there is overwhelmingly suggests that implementation in practice is fraught with difficulties and generally falls short of expectations (e.g. Nutt, 1983). This is neatly captured by Meldrum (1996, pp. 30), who states, “One of the concerns about marketing as a management discipline is the inability of organizations to put into practice the policies devised in its name”. It is interesting to note that poor implementation is a long outstanding concern first brought to light by early writers (e.g. Barksdale and Darden, 1971; Felton, 1959) with Churchman (1975) aptly labeling it “the implementation problem”.

How can we improve Marketing Strategy implementation?

A) Development and Support of effective internal as well as external communication patterns may well reduce barriers and reduce dysfunctionalities and conflicts.

B) Skilled and Competent Implementers (for example, sales-reps who can eventually justify relationship excellence standards).

C) Organizational Redesign (for example, modification of strategic orientation in parallel to adoption of customer-oriented Marketing infrastructures).

D) Design and implementation of innovative internal Marketing programs / practices, targeted at key groups in the company, alliance partner companies, and other influencers.

The Value Delivery Process

Marketing is the process of Value Exchange. Value actually represents the exchange of tangible goods, services, ideas, time and maybe other intangibles between buyers and sellers. In fact, the key to a successful exchange is that each party has some value desired by the other. This has got an impact on the entire Marketing Concepts' philosophy design and implementation.

Building and enhancing strong Buyer-Seller Business Relationships is a strong part - coeffiecient of the Value Delivery Process. Most pragmatically, the Value Delivery Process is a Strategic Marketing approach that differentiates a customer-oriented organization from the traditional brand making and selling.

The Value Delivery Process brakes into three distinct phases:

A) Choosing the value where Marketing Management does its own “homework marketing” before any product exists (e.g. market segmentation, targeting and positioning as the essence of the first phase of strategic marketing.

B) Providing the value where Marketing Management decide the marketing mix criteria (For example, Marketing tactics) that will provide a strong competitive and thus a differential advantage (see previous posts).

C) Communicating the value where Marketing Management decides on the actual implementation process - utilization of the Sales Force, Sales Promotion , Advertising and other integrated communication tools.

There is though a differentiated Marketing approach into Value creation and substantiation of a differential advantage and this has got an impact upon Vargo and Lusch's academic work. Drawing on Vargo and Lusch (2004) and their Service–Dominant logic, “value is the outcome of co-creation between suppliers and customers”. They even stated that the customer is always a co-producer who participates in value creation through co-production. However, because they considered production a concept that is not in accordance with an inherent service logic (Vargo, 2008), they later replaced this statement with the expression “customers are always co-creators of value” (Vargo and Lusch, 2008). Other academics such as Grönroos (2008) and Ravald, (2010) in recent academic publications argue the specific Service-Dominant logic approach and ask for roles clarification of the different actors who participate in value creation on the ground “that the knowledge on how value is created, by whom and for whom is scarce”.

Vargo et al., (2008, pp. 146) acknowledging the issue claimed, “The roles of producers and consumers in a Goods-Dominant logic are distinct, whereas they in a Service-Dominant logic perspective are not”. In a recent article on the Service-Dominant logic, Vargo et al., (2008, pp.147) address this important feature of research on value creation as they suggest “...each instance of value creation is unique to and can only be assessed from the perspective of an individual service system...”. In full accordance with a Service-Dominant logic view, value is not created and delivered by the supplier, but emerges during usage in the customer’s process of value creation (Grönroos, 2006, 2008; Ballantyne and Varey, 2006; Gummesson, 2007).

This very last remark highlights the significance of Knowledge Workers' (e.g. Sales-Reps) contribution into the effective implementation of Marketing Strategies.

Marketing Plan - 4 Components of a Marketing Strategy - interesting video

Marketing Strategy with Philip Kotler at the London Business Forum, September 2008

Lambda: Marketing an “Ultra-Premium” Olive Oil

“Too many brands were claiming the extra virgin olive oil description but were not of special quality. I love olive oil and I wanted to do something more, to create and reinvent the way people view it,” says Giorgos Kolliopoulos who developed Lambda according to "The Olive Oil Times" through his luxury food and beverage company Speiron, based in Athens, Greece. Available since 2007, Lambda remains the priciest ultra premium labeled brand on the market, consistently maintaining benchmark qualities that rate better than extra virgin standards.

From a theoretical point of view, a brand is a name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers. American Marketing Association

Clearly, a strategic brand perspective requires Marketing managers to be clear about what role brands play for the company in creating customer and share-holder value.

FOR BUYERS, BRANDS CAN:

1) Reduce customer search costs by identifying products quickly and accurately,
2) Reduce the buyer’s perceived risk by providing an assurance of quality and consistency (which may then be transferred to new products),
3) Reduce the social and psychological risks associated with owning and using the “wrong” product by providing psychological rewards for purchasing brands that symbolize status and prestige.
Marketing Science Institute Report No. 97-422, 1997

FOR SELLERS, BRANDS CAN FACILITATE:

1) Repeat purchases that enhance the company’s financial performance because the brand enables the customer to identify and re-identify the product compared to alternatives,
2) The introduction of new products, because the customer is familiar with the brand from previous buying experience,
3) Promotional effectiveness by providing a point of focus, premium pricing by creating a basic level of differentiation compared to competitors,
4) Market segmentation by communicating a coherent message to the target audience, telling them for whom the brand is intended and for whom it is not,
5) Brand loyalty, of particular importance in product categories where loyal buying is an important feature of buying behavior.
Marketing Science Institute Report No. 97-422, 1997

Defining Strategies and Interdepartmental Organizational Alignment

It is useful for the development of the discussion to share definitions on Strategies and Interdepartmental Organizational Alignment:

A strategy is therefore a fundamental pattern of present and planned objectives, resource deployments, and interactions of an organization with markets, competitors, and other environmental factors (Kerin et. al., 1990). At a rather similar pace Walker et. al.,(2003) contend that a strategy should specify:

1)What objectives to be accomplished,
2)Where exactly to focus (which industries and product-markets) and
3)How to allocate resources and activities to each product-market in meeting environmental opportunities and threats and gain a competitive advantage.

Walker et. al. (2003) further contemplate five major components of a well-developed strategy as critical in Marketing strategy implementation:

1) Scope reflecting to the breadth of corporate strategic domain (e.g. vision, mission). For example, corporate scope reflects on the number and type of served industries, available product lines, and market segments a firm competes or plans to enter.
2) Goals and Objectives. For example, performance oriented dimensions - Marketing Numerics.
3) Resource deployment in effectively and efficiently allocating financial and human resources.
4) Identification of a sustainable competitive advantage (see previous post).
5) Development of Interdepartmental Organizational Synergies.

Given the recasting of successful Marketing in terms of services and relationships excellence, and the key role played by service providers it becomes necessary to bring ideas from a number of disciplines (for example, Marketing, Operations and HRM together)– without successfully ‘aligning’ strategy and implementation, services and relational quality will be impaired and therefore potential for competitive advantage lost.

Labovitz and Rosansky (1997, pp.5) defined alignment “as both a noun and a verb – a state of being and a set of actions . . . alignment . . . refers to the integration of key systems and processes and responses to changes in the external environment”. Often the concept of alignment when used in business is referred to as strategic fit (Smaczny, 2001), strategic match (Mintzberg et al., 1998), or simply the interface between two things (van der Zee and De Jong, 1999). In fact, Beal and Yasai-Ardekani (2000, pp. 735) identified alignment as “moderation, mediation, profile deviation, gestalts, covariation, and matching”.

Marketing strategies and objectives

A) Build Marketing Strategy
The Marketing objective in a Build Marketing strategy is to increase sales and market share. This is a rather aggresive, relatively expensive however dynamic Marketing business approach aiming at growth markets. In this sense, an organization that incorporates a Build Marketing strategy focuses at increasing sales and establish its competitive position position in the market (e.g. development of market share). A Build Marketing approach is also desirable in mature markets where there are exploitable competitive weaknesses and hence exploitable corporate strengths.

B) Hold Marketing Strategy
The Marketing objective in a Hold Marketing strategy is to maintain market share. This is the case of a market leader firm in a mature or declining market. An organization can also apply Hold marketing strategy in a growth market where the costs incurred by trying to build market share outweigh the benefits.

C) Harvest Marketing Strategy
The Marketing objective in a Harvest Marketing strategy is to maximise profits whilst sales and market share are falling. This is the case of a firm that has decided to reduce promotional budgets, rationalize product line and possibly increase prices in maximizing profit margins. Such a firm obviouly neeeds a loyal core customer base (e.g. see development of loyalty schemes) as well as better use of financial and human resources. Indeed, "no money to waste" may be the slogan of the firm. This is a Marketing strategy suitable for recession times.

D) Divest Marketing strategy
The Marketing objective in a Divest Marketing strategy is to drop or sell the product out of its entire product portfolio. There is obviously poor performance and inappropriate fit with the rest of the product family. It is hard to make such Marketing decisions but there is only one reality: Sales at a Profit Reality