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MARKETING AND STRATEGYMBA Corner

( Best ) Additional Mark-On

by Mr. DJ 02/08/2021
written by Mr. DJ

Additional Mark-On

What is Additional Mark-On?

A mark-on is the difference between the cost of good and its selling price. It is also referred to as the mark-up price. Mark-on price is the price at which the company achieves profit, after all its production costs have been incurred. Production costs include all the fixed costs and the variable costs. Mark-on can be calculated in the form of percentage or value.

A mark-on of 10% indicates that if the Cost price of the item is 100Rs, then the Selling price would be 110Rs.

Additional mark-on is the additional increase in the price of the commodity, done to achieve higher profits, due to the increase in demand of the commodity during various seasons or holiday period. This strategy is used by various manufacturers who produce goods that have a seasonal variation in demand.

Example: Air conditioners (AC’s). Companies manufacturing AC’s increase the price of AC’s during peak summer seasons of April-May. Though the prices are already set high at the beginning of the summer season i.e. in March, they put an additional mark-on in the months of April-May to increase profits.

Travel companies use the same strategy. Suppose, a person books a tour scheduled on 1st May, on 1st March, the company charges him 1000Rs. If he books it on 1st April the company may charge 1200Rs. And if he books the tour on 29th April, the company charges him 1500Rs. This is how additional mark-on is used. More is the demand of the product; more is the additional mark-on price.

( Best ) Additional Mark-On - Gk By Mr. DJ A mark-on is the difference between the cost of good and its selling price. It is also referred to as the mark-up price

As seen in the above example, the cost of the camp increases by 2000Rs. after 1st Feb and there is an additional mark-on of 2000Rs, as the camp date nears.

Advantage of mark-on pricing is that it is easy to determine the production cost and is beneficial in times of inflation. Disadvantage is that fixed costs never change, thus, not promoting the search for better production methods.

 

Credit To MBAskool

02/08/2021 0 comment
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Add-On Sale
MARKETING AND STRATEGYMBA Corner

( Best ) Add-On Sale

by Mr. DJ 02/08/2021
written by Mr. DJ

Add-On Sale

What Is an Add-On Sale?

An add-on sale refers to an ancillary item sold to a buyer of a main product or service. Depending on the business, add-on sales may represent a source of significant revenues and profits to a company. An add-on sale is generally suggested by the salesperson once the buyer has made a firm decision to buy the core product or service. It is sometimes known as “upselling.”

For example:

1. Selling a mobile phone cover or a screen guard in addition to a purchase of mobile phone will be an Add-On Sale.

2. Providing an extension of warranty or a tech-support package with a purchase of software is also an example of Add-On Sale.

Note that Add-On sale directly relates to the purchase and the added item costs less than the core item. Understanding the consumers’ needs is pivotal for effective Add-On selling. Staying aware of the customers’ needs helps the salesperson or the service provider to provide the options for appropriate Add-Ons. The primary benefit of Add-On selling is to increase the items purchased thus increasing the total purchase amount. Also customers sometimes view Add-On sale to be useful and of good service thus and tend to return to business in future. To make the Add-On sale to be effective it should sound like a solution to customers’ problem and not an additional sale. The salesperson should explain all the available Add-On options to the customer carefully and elaborately so that they can make an informed choice.

Add-On Sale

Successful Strategies

Effective add-on selling hinges on understanding the customer’s needs. A hardware store customer who buys a wheelbarrow will probably not want paint samples, but he might need a shovel. Staying conscious of the customer’s needs lets the salesperson direct him to an appropriate add-on. The add-on should sound like a solution, not a sale. The customer should see how the add-on will solve a problem, not just pad the business’s bottom line. The salesperson should present several add-on options and an explanation of the value for each one, which allows the customer to make an informed choice.

Common Add-on Sales

Standard add-on sales vary by industry, but some add-ons work in a variety of industries. Warranties on parts or products are very common. Many businesses offer upgraded versions of a product for less than the equivalent retail cost, such as a software upgrade on a new computer. Businesses that deal in products installed in homes or offices frequently make service plans available at a discount from normal service call prices.

Understanding Add-On Sale

Typical examples of add-on sales are the extended warranties offered by sellers of household appliances such as refrigerators and washing machines, as well as electronics. A salesperson at an automobile dealership also generates significant add-on sales by suggesting or convincing a buyer sitting at his or her desk that the buyer would be much happier with the car with a few or several add-on options.

Benefits

The primary benefit and goal of add-on selling is an increase in the total purchase amount. Businesses that employ effective add-on selling also benefit from increased customer loyalty. Customers who view businesses as providing good service, such as making useful suggestions, tend to return to those businesses for future purchases. The business serves as a resource for information or advice, rather than just a place to shop.

Advantages of Add-On Sales

Add-On sales can help a seller establish a rapport with a customer, which equates to planting a seed for future business. It is not a dirty tactic if it focuses on helping customers “win” with add-ons that will enhance their experience with the primary item. By delivering enhanced value and making them feel like they got a better deal, chances are good you’ll generate increased Customer Lifetime Value (CLV), which is the net profit contribution a customer makes to your company over time.

Increased CLV means each customer generates more revenue for your business without additional effort from you, which also means your company has more money to spend on acquiring new customers. Many consider CLV to be an extremely important metric for understanding customers because it provides data that informs important business decisions about sales, marketing, product development, and customer support.

02/08/2021 0 comment
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Adaptive Selling
MARKETING AND STRATEGYMBA Corner

( Best ) Adaptive Selling

by Mr. DJ 01/08/2021
written by Mr. DJ

Adaptive Selling

What is Adaptive Selling?

Adaptive selling is a custom or tailored approach to selling, which takes into account the type of customer, the sales situation and the feedback received. Identifying an individual’s social style is an important feature of adaptive selling.

KEY TAKEAWAYS

  • Adaptive selling is adapting of sales processes and terms to the needs and problems of a customer.
  • Because adaptive selling requires rapid customization of sales approach to different customers, tech and e-commerce companies have incorporated big data and computer algorithms into sales processes.

Adaptive Selling

How does Adaptive Selling Work? 

In adaptive selling approach, the normal selling techniques which include automated emails and random cold calls is broken. This selling technique requires the person in charge of sales to be able to adapt to the customer’s needs and problems. The main strategy for this approach to be efficient is for the seller to adapt or customize his selling techniques based on the customers style. This approach is said to be customer-centric and focuses on meeting the needs of a customer and ensuring they are happy and satisfied. Customer-centric is a tactic in which a business focuses on maximizing the services and products offered to the customers and creating a good relationship with the customer. Adaptive selling ensures the customer is at the center of all ideas, operations and decisions made in the business. It entails listening to the client, identifying his needs and solve his problem by giving them customized service or product. Adaptive selling approach helps to generate more leads and help a business to be a competitive differentiator in the market. The business focuses on establishing and maintaining relationships with the client and also adapting to their needs so as to provide a better customer service which in turn brings in more sales. This approach has been in use for a long time and is essential whenever a company or business wants to create a rapport with customers.

Adaptive selling requirements

  • Adaptive selling requires a well-trained sales people and customer service team. This is because the approach is more consultative and based on the customers need.
  • The sales team should have enough knowledge on the product they are selling and be able to use their selling techniques based on the customers need and expectation.
  • Needs to understand the need of a customer before persuading a client into buying.
  • Needs to understand the characteristics of the customer and adapt their sales behavior to it. For instance, a customer may be in a hurry, the salesperson should be able to notice it and change their selling words to be more precise and effective.
  • Should adapt to the customer social and communication style so as to create a good relationship and build rapport. A good salesperson not only sells the product but also sells and maintain a good relationship with the customer.
  • Should be able to control the sales process and be confident enough to lead the client to a successful sale transaction.
  • Should be able to identify the needs, desires and fears of a client even without the client talking about them.

Some businesses and companies have turned selling process from being an art into a science in order to respond to the client quickly. They do so by ensuring that they only hire highly qualified salespeople who are also excellent in customer service. They have come up with ways of collecting and analyzing feedback from their customers which in turn help them customize a product or service which meets their needs. Companies then use this data to train complex sales teams who can provide customer service. The adaptive selling is effectively used today in e-commerce and tech industries. This is because they are able to use the data collected and computer algorithms to accurately target the market according to their clients need, taste, preferences, demographics and past purchase.

Example of Adaptive Selling

An example of adaptive selling could be customizing rates based on order counts. Most manufacturers tend to offer standardized rates for a minimum order count. However, not all customers have the same requirements

For example, a large hospital may have a different set of requirements for medical devices as compared to a smaller one. In this case, salespersons from the medical device manufacturer will customize their rates based on customer.

Another example of adaptive selling is the use of data in selling directly to consumers on the Internet. Data from cookies track user clicks and site visits, allowing companies a window into consumer preferences and interests.

For example, if a user repeatedly visits an e-commerce site and clicks on the same product category, such as outdoor equipment, then the company can customize their homepage and offer similar products during the user’s next visit to the site. E-commerce behemoth Amazon often uses this tactic to drive sales on its site.

Benefits of adaptive selling to the salesperson

There are several benefits of adaptive selling enjoyed the salesperson:

  • The sales person has a chance to learn other selling channels
  • The salesperson is able to come across different types of customers with different needs and be able to analyze their needs.
  • Sales person has a chance to develop capability of adapting clients need
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Adaptive Marketing
MARKETING AND STRATEGYMBA Corner

Adaptive Marketing

by Mr. DJ 01/08/2021
written by Mr. DJ

Adaptive Marketing

What is Adaptive Marketing?

Adaptive Marketing is the new approach taken by marketers for strategizing marketing efforts by actively tracking and responding to consumers. It refers to changing or reforming (adapting) a firm’s marketing mix to suit to the particular geography in which the firm is operating.

Adaptive marketing is an approach that enables marketers to tailor their activities in unparalleled ways to meet their customers’ interests and needs based on recorded data. It allows them to satisfy individual consumer needs in relation to a given brand. When carried out in the right manner, adaptive marketing feels like rewarding consumers by giving them the opportunity to personalize a product/service.

It’s not just about advertising, adaptive marketing can result in an overhaul of entire marketing strategies by adapting every part of the marketing mix as well as the product itself to connect more consumers with the brand.

The beauty of this type of consumer marketing is that consumers will be much less likely to switch brands, since the product ceases to be a commodity and becomes more integrated with the consumer. It optimizes the brand experience on the part of the consumer and strengthens the brand’s loyalties.

Adaptive Marketing

Adaptive Marketing Is More than Just Advertising

Adaptive marketing includes advertising (like social media advertising, which can be targeted with great precision), but it goes beyond advertising. It encompasses things like personalization (from Kleenex boxes to airline seating), behavioral pricing, and faster response to consumer demands. Old-school advertising was different in that it worked with a conveniently large aggregate picture of “the consumer,” who was not nearly as well-defined. Adaptive marketing turns that concept on its head.

What is psychographic branding?

Using psychometrics, the psychographic branding method can foresee how different personality types would interact with a brand and its product/service, create a mix of tailored micro-messages based on universal personality types, and bring a marketing strategy closer to the individual level.

Unlike most marketing tools designed to answer the standard questions (how, when, who, and what), psychographic branding can find answers to the question “Why?”. Without violating the privacy of people, it can be used in a good and ethical way in marketing by helping brands to define sub-target groups based on their personality type.

When integrated at a much deeper level inside a business, it can help create a bespoke marketing consistency that is almost exclusive to each sub-group, rather than a one-size-fits-all type.

Examples of Brands Adapting Marketing to the “New Normal”

As a result of the COVID-19 global pandemic, many brands have made strategic pivots in their business approach to accommodate for new consumer needs or industry changes. Today, we want to highlight companies with some of the most effective evolutions in response to the pandemic, and share how they’ve narrowed in on success.

10x digital

Prior to the pandemic, the model of our digital marketing business was already structured to conduct (really) all business over WIFI via Zoom, email, Slack, DropBox and many other digital platforms. Yet, we had to become even more nimble in several areas internally and externally, including tweaking our marketing messaging, curtailing business travel/conferences and urging clients to analyze their marketing so that their strategies would fit and be responsive to the new business environment. We created a ‘2020 marketing cheat sheet’ that on a high-level outlines how companies can take the pulse of their marketing plans so they respond to their clients’ rapidly evolving needs real time.

Apple

Shifting their #shotoniphone campaign to a slightly altered #madeathomeseries approach, Apple demonstrated how re-framing the narrative of existing campaigns can be one of the most effective pivots for a brand. A small, calculated adjustment was enough to create relevant messaging that still achieved their objective of facilitating user-generated content.

Nintendo

Experiencing a 41 percent surge in operating profit over the previous year, it’s no secret that Nintendo is at the top of its game. Much of this success is attributed to Animal Crossing, a fun, build-your-own island adventure for gamers of all ages. But, why has the Nintendo Switch become so popular in a pandemic? The short answer remains that gaming is well-suited to individuals practicing safe social distancing at home. Speaking further on the specific insights surrounding Animal Crossing, Hideki Yasuda, analyst for Ace Research Institute Leaning shared that, “It’s an uncertain world already, and no one wants war and horror games in their living room. Animal Crossing keeps the parents happy too.”

Daily Harvest

One of the keys to creating effective digital marketing strategies is knowing your audience beyond their demographic details, and choosing to combine that initial data with psychographic information on their behaviors, needs or fears. Leaning into the idea that many millennials don’t like to cook, Daily Harvest focused on reimagining an industry and meeting their audience in the middle, with home-delivery, healthy and frozen meals for order. Their approach was immediately successful, as its foundation was in audience insight, current events and solving for a primary pain point.

Coca-Cola

Adjusting to meet the changes in consumer shopping behaviors, John Murphy, Chief Financial Officer, shared how Coca-Cola is still focusing on individual communities as a strategy to support long-term growth. He shared that, “winning locally is something that should not change through this type of period…in these last 12 weeks, the intersection of what we do for our local communities, particularly through our bottling partners, and how that’s perceived by consumers has never been more important.” The next step then became finding focused ways to communicate with these consumers, honing in on geo-targeted digital messaging to share local initiatives.

Zoom

We all know that the powerful video-conference software, Zoom, has been one of the primary engines behind our ability to keep business running during the pandemic. What you might not know is how they’ve recently grown their business strategy to include both B2B and B2C efforts. In expanding their target audience, their platform has become a new way that grandparents communicate with their family, or long-distance friends set up virtual happy hours. This change, prompted by the pandemic, opened up a window to new buyer channels and product offerings to add in their marketing mix.

Postmates

When making brand, product or offering updates, the way we communicate this information is just as important as the change itself. As soon as Postmates created non-contact deliveries for users of the app, immediate updates were pushed through the application itself, email and social media. The adjustment was an answer to a need, and their approach to sharing this with their client base was effective and thorough.

Ace Hardware

Have you noticed that everyone is taking on DIY projects at home? Leveraging this insight, Ace Hardware has been giving people the digital content they need: from learning how to unclog a drain, to staining a wood deck, replacing air filters or painting a living room, their comprehensive social strategy has focused on the home improvers. Taking it a step further, linking each content video to products offered online or in-store closed the marketing-to-sales circle and bolstered consumer purchases.

01/08/2021 0 comment
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MARKETING AND STRATEGYMBA Corner

Actual Value

by Mr. DJ 01/08/2021
written by Mr. DJ

What is Actual Value?

Actual value can be defined as the total actual cost incurred in making a particular good or providing a particular service. This is incurred by the manufacturer or service provider and may differ from the amount that he gets on selling that particular good or providing that particular service.

Value in marketing can be looked as either actual value or customer percieved value. Both of them are from the prespective of seller.

How it is different from Perceived value

Perceived value of a particular good or service may be higher or lower than the actual value depending on the perception of the consumers. Suppose a particular company incurs Rs 100 on manufacturing a particular good and sells in the marketplace at Rs 200. However the customers are willing to pay only Rs 150 for that particular product. In this case the actual value of good is Rs 100 while the customer perceived value is Rs 150.

Perceived value of a good also depends on the brand value and brand awareness of the particular good while actual value of good does not depend on the brand perception of that good.

Example

Company such as P&G and HUL generally manufacture toothpaste which generally cost way too lower than what the customers actually pay. This is because of the goodwill that the companies have accumulated over a period of time and the perceived value of the good is higher than actual cost of the good.

Actual Value

A 2X2 matrix can be drawn and different goods and services can be placed in this matrix.

Post Credit To MBAskool

 

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https://expertprogrammanagement.com/
MARKETING AND STRATEGYMBA Corner

( Best ) Actual Product

by Mr. DJ 28/07/2021
written by Mr. DJ

Actual Product

It is a consumable product, which can also be a service or idea that a customer is purchasing. Contrary to the overall consumer perception of a product, there are actually three different levels which include the core, actual and the augmented product.

The core product is also known as an added value benefit or what the actual product’s value to the consumer may be. This can be added convenience or how it enhances or improves on or solves a problem for the consumer. Products tend to have a whole series of features but may only provide a small number of benefits to the actual consumer.

The actual product is the tangible, physical product and what the average person would think of under the generic banner of product. And when combined with the augmented product, like a warranty or customer service after the sale, the core gains its value.

Marketers will aim to discover the consumer’s preference for benefits and will match individual features to the preference. That is why professional salespeople for example, often ask many questions whereas a novice salesperson will just tell you the features of the product.

In regard to new product research and development, there is great care to incorporate all three elements to satisfy and also anticipate consumer needs as well as deliver products that offer benefits at the core, actual and augmented levels..

Actual Product

Image Credit to :- https://expertprogrammanagement.com/

Did you know that every product has 3 dimensions?

To most people a product is a one-dimensional tangible good or intangible service. In other words, to the broader population a product is nothing more than something we buy. We exchange money and in return we receive a product.

To business marketers, however, a product must be considered in a broader context. There’s more to a product than the value proposition (product of value) we buy. Much more.

In reality, there are three separate, yet closely related components to every product we buy or sell. From a marketing standpoint, these three dimensions are the:

  1. Actual product;
  2. Core product; and
  3. Augmented product.

Actual product

The actual product is the second product level and is quite simple to understand. The actual product is that the overall product design and the product features. If you were to describe a product in detail, then you would be describing its product features – which is the actual product.

As an example, let’s consider breakfast cereals again. When describing the cereal you would identify the following product features: shape, taste, texture, size, color, aroma, crunchiness, smoothness, ingredients, packaging, name, brand, images, and so on.

Obviously there would be 1000s of ways to design a breakfast cereal, but this would be the actual product design (set of product features) for a particular breakfast cereal offering. A key goal of the marketer is to ensure that the product design needs the core need (or required set of benefits) for the consumer. This means that there should be a relationship between the first product level (core need) and the second product level (a set of product features designed to meet that core need).

The actual product is the product features and its design. Products typically have lots of features but very few actual benefits (core benefits) to the customer.

Returning to our mobile phone example, then the actual product consists of the design and features of the phone, including:

  • Dimensions.
  • Color.
  • Screen size.
  • Bluetooth compatibility.
  • App ecosystem size.
  • Packaging.

 

28/07/2021 0 comment
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MARKETING AND STRATEGYMBA Corner

( Best ) Convenience Store

by Mr. DJ 28/07/2021
written by Mr. DJ

Convenience Store

What Is a Convenience Store?

A convenience store is a retail outlet that sells a limited range of prepared and ready-to-eat foods, bottled and fountain beverages, household staples, tobacco products and periodicals. Convenience stores are typically small in size, are open extended hours, and, in most cases, are staffed by a relatively small team of cashiers, stock workers, and managers.

While there can be significant differences between individual convenience stores, these stores are stocked, located and designed for customers who are on the go and need to pick up just a few items. Because convenience stores are often open late at night, early in the morning and on holidays, many people also rely on them for emergency purchases of things like ice, milk, eggs or over-the-counter medicines when regular stores are closed.

Examples of convenience stores

Here are a few examples of different formats of convenience stores all around the world. Let us learn about them one by one.

1. Kiosk

The kiosk format of convenience stores is the most basic format of convenience stores. These stores are usually less than 800 square feet and provide little bit additional revenue other than the revenue generated by the gasoline sales. However, selling gasoline is always the priority of the store owner as the store owner is usually a petroleum marketer or an oil company. Therefore, the kiosk stores focus on fast-selling goods such as tobacco, snacks, beverages, and confectionaries.

These stores don’t provide any type of foodservice or sell grocery items. The stores earn only ten percent of their total revenue by confectionery of sale items and food items in stores at such locations. These stores provide parking only at the pump and the working hours of such stores largely depend on the location of the store and the inclination of the store owner. These stores don’t have regular customers. Most customers of these stores are usually people in transit or local people stopping to buy gasoline.

2. Mini Convenience store

The mini convenience stores are a little larger than the kiosk stores. This store format is usually 800 – 1200  square feet in size and is adopted popularly by oil companies, and the significant emphasis is given on the sales of gasoline. However, in mini convenience stores, the store sales make up a large portion of the total sales revenue generated by the store.

These stores sell a minimal selection of grocery items, and at the name of food services, these stores sell prepared sandwiches. These stores don’t provide separate parking other than the parking space provided at the pumps. Although very few mini-convenience stores also offer a modest striped parking space. These stores remain open for usually 18 hours to 24 hours. The frequent customers in such stores are the people stopping to buy gasoline. There are a few mini-stores (of same-store size) in urban areas that don’t sell gas and sell groceries and other essential items only.

3. Limited selection convenience stores:

Limited selection convenience stores fall in size range of 1500 – 2200 square feet. The convenience stores of these sizes are becoming quite popular, and their numbers are increasing. These stores are run often by oil companies, and because of their large size, they are converted into two-bay service stations.

The gasoline and store sales both are an essential part of the store sales and equally contribute to the profitability of the store. These stores are different from the kiosk and mini convenience stores as they offer a broad range of product mix and grocery items. However, these offerings are still less than the offerings provided by a traditional superstore.

These stores also offer a large number of food services such as hot dogs, burgers, popcorns, and nachos, etc. But it doesn’t mean that these services make a large portion of store customers. The gasoline customers still make up the central portion of the customer base of the store. Some limited selection convenience stores provide striped parking in some areas and provide service for 24 hours of a day.

4. Traditional convenience stores

The traditional convenience stores are the most common type of convenience store, and many original convenience stores fall under this category.  The size of traditional convenience stores is usually 2400 – 2500 square feet. These stores offer quite a more extensive range of product mixes such as bakery, dairy, beverages, snack food, grocery, tobacco, confectionery goods, health and beauty products, prepared foods to go, frozen or fresh meat, gasoline, and various other items.

The traditional convenience stores usually provide approximately 5-12 parking spots and are easily accessible by pedestrians. These stores remain open as per the sales volume of the store and the location of the store. However, a large number of stores provide 24-hour services.

An extensive convenience store range usually owns traditional convenience stores. However, oil companies also build convenience stores in this size range.

5. Expanded convenience stores

The expanded convenience stores fall under the size range of 2800 to 3600 square feet. The highest growth is seen in this type of convenience store. Because of their large size, these stores have more shelving space and can accommodate many products. In addition to this, these stores also provide space for fast food operations and seating space for customers.

Because of the large size, these stores are taking advantage of the niche of supermarkets which are usually established in 40,000 square feet space. Several store chains are taking advantage of this “superette” approach. However, many store chains are adopting expanded convenience stores to increase their profit margin by including fast food services.  As the profit of small services such as gasoline increases, the companies try to make fast food services as essential services.

These stores sell all the traditional convenience store products and usually serve for extended hours or 24 hours. Parking space is an integral part of these types of stores. Therefore, you will often find 10-20 parking spots in expanded convenience stores.

The regular customers of this type of convenience stores are not only gasoline buyers. But the sufficient parking space, sitting area, and a large number of grocery items attract different categories of customers such as senior citizens, women, college-going students, and mothers with young toddlers.

6. Hyper Convenience store

Hyper Convenience store

The typical size of hyper convenience stores falls under the range of 4000 – 5000 square feet. This type of convenience store is quite large. Because of its vast size, they usually offer a large number of convenience items in specific departments allocated for the items.

For example, in a hyper convenience store, you might find a bakery, fast-food section, sitting area, and a pharmacy all in one store. However, like other convenience stores, the gasoline stations are not essential for hyper convenience stores, but you will find many hyper convenience store owners also selling gasoline.

Because of the variety of services provided by such stores, it is evident that people will spend a significant amount of time in these stores. Therefore, these stores need to offer a substantial amount of parking space for their customers.

These stores provide services for extended hours but not for 24 hours a day. In addition to typical convenience store customers, these stores also attract senior citizens and families. In many places, these stores also serve the purpose of mini-truck stops which have a significant impact on the product mix sold by the store and its typical customer base.

Differences Between Convenience and Grocery Stores

Grocery and convenience stores have different missions. Grocery stores are a destination for consumers who need to purchase food and household products for both everyday use and special occasions. The wide selection of products and brands, as well as high inventory levels, allow consumers to shop the goods that their household may need for a significant period of time. Large, wheeled carts are available at the store entrance, with the anticipation that shoppers will fill them with enough food to last a household a week or more.

Convenience stores, on the other hand, meet the needs of shoppers who need one or two products right away. The lack of shopping carts, for example, speaks volumes about how convenience stores operate: There is no need for a cart, as most customers will only buy a few items and can easily carry them up to the cash register.

Store Size: Traditionally, convenience stores have what is known in the retail industry as a “small footprint.” The average convenience store size is around 2400 ft.² – whereas the average grocery store in the United States is around 45,000 ft.² It should be noted, however, that store sizes vary, and there is some evidence that U.S. grocery stores may be decreasing in size.

Store hours: Convenience stores are often open all day, every day, though some do close during late night and early morning hours. Still, one can usually expect these stores to be open very early in the morning and to close late at night. In addition, convenience stores are also frequently open on holidays.

While there are many supermarkets and big box stores that are themselves open 24 hours a day, many maintain more traditional retail hours, such as opening at 8 or 9 a.m. and closing at 9 or 10 p.m. Traditional grocers are also more likely to close, or to adopt a special schedule, on holidays.

Store staffing: Typically, grocery stores have multiple checkout lanes and registers, along with large staffs that include store and department managers, workers in specialty departments, such as the deli or meat counter, cashiers and stockroom workers.

Typically, convenience stores have small staffs and only one or two employees on duty at any one time. Although some stores may have more than one register at a shared checkout counter, many stores only need one register, as customers generally purchase only one or two items.

Location and parking: Convenience stores are often located on small lots or in storefronts in strip malls or in other types of commercial buildings. They are easily accessible by car and on foot. Parking lots are small, allowing patrons to exit their vehicles and head immediately into the store. Some convenience stores are attached to gas stations, which offers additional time savings.

Grocery stores often have much larger parking lots and may be part of a large cluster of retail stores. The large parking lots may require patrons to spend several minutes walking out and into the store.

Pricing: Convenience store prices are almost always higher than what a consumer would pay at a traditional grocery store. The premium pricing reflects the added value of being able to buy something quickly, although grocery stores command more loyalty from repeat and large volume customers due to their more competitive price points.

Product assortment: Convenience store product assortments are limited to items that people are likely to need while commuting, traveling, or when their household supply runs out. Grocery stores, on the other hand, tend to offer a wide range of products in all of their categories, including fresh foods, prepared foods, household products and personal care.

Brand and size diversity: It’s not unusual for traditional grocery stores to offer several brands within a very limited product category. For example, grocery store shelves often hold several different brands of peanut butter. Within each brand, there may be several types of peanut butter, such as creamy, crunchy, and no-added-sugar. These brand varieties may also be available in multiple sizes.

By contrast, a convenience store is likely to carry only one brand of creamy peanut butter. The same is true for other products, such as dish soap, shampoo or diapers.

Hot foods and prepared meals: Usually, convenience stores sell hot and ready-to-eat foods, such as hot dogs, nachos, pre-made sandwiches, and salads. In addition, stores often sell frozen entrees and snacks that can be reheated in the store’s microwave. Fountain drinks and hot coffee are also always available.

Other Considerations

Over the past decade, the retail industry has undergone a massive sea-change in the United States, and around the world. Consumers are becoming more comfortable with home delivery of groceries, which may eventually contribute to smaller grocery store formats. Many consumers are also more health-conscious and are suspicious of prepared and processed foods in convenience stores. This has led to some stores to offer a healthier range of products, including more fresh fruit, vegetarian options and boutique snacks, such as vegetable chips or high-protein cookies.

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Activity Report
MARKETING AND STRATEGYMBA Corner

( Best ) Activity Report

by Mr. DJ 28/07/2021
written by Mr. DJ

What is Activity Report?

Activity report is an overview of the worker’s activities over a period of time, it shows specific tasks, activities, assignments, projects, and so on that has been done. Its purpose is to provide a detailed overview of what a particular worker has been doing. The activity report can take the form of, for example, a monthly written report, or just an oral summary of the person’s activities during the past day.

Activity report is very similar to timesheet, only it is much more specific to provide more details. Whereas timesheet shows how much time a person has spent on the tasks, activities or projects from a predefined list, activity report contains more detailed breakdown of what the person specifically did.

What is Activity Report?

Key information in an activity report

1. Project information

Any activity report should include key information that identifies the project, all members of the team, and the most up to date status on project’s progress (i.e., “we are just beginning the project,” “we are half way through producing the deliverable,” or “we are putting the final touches on our work”).

2. Project tasks

In addition to these identifying details, activity reports should articulate project tasks that have been completed, tasks currently underway, and what tasks are needed to complete the project in a timely manner. This information should communicate what each team member is working on so as to expedite the reader’s communicating of questions or concerns.

Your description of completed tasks, current activities, and responsibilities going forward should inform your reader of the project’s timeline and its estimated time of completion.

3. Describe any challenges

Activity reports should identify any challenges encountered, with particular reference to possible actions that can mitigate or avoid these obstacles in the future. Describing these difficulties will also provide reasoning for the project’s timeline and whether it is maintained or modified. Keeping managers and fellow employees in the loop on difficulties also provides an opening for you to ask for additional resources, time, or help on the work going forward.

4. Tone, style, and length

Although activity reports circulate in workplace environments through informal channels, it is important to write them in an appropriate and a professional tone because fellow employees and managers alike will read them.

Use clear, concise, and concrete language in discussing the progress of a project in order to avoid ambiguity on its current status.

Finally, keep activity reports brief. As they are informal messages that, hopefully, require no immediate action, you want your reader to skim through its contents quickly and efficiently. Using brief lists and avoiding excessive detail while using concrete language will ensure that your activity report effectively communicates your project’s status.

What form can the activity record take?

Usually, activity report takes the form of a table where individual activities or individual days appear in rows. The report may take the form of a paper document, an excel or other spreadsheet document or may be created in an application. Activity reports are frequently built into a web or mobile application, which is very effective since it makes the reports available 24/7, or as part of an attendance software.

The worker keeps record of his or her activities and for each one of them, they give a unit, eg the number of hours spent on working, the number of kilometres traveled, the number of operations performed, and so on. The activity report is typically approved by Superior or customer.

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MARKETING AND STRATEGYMBA Corner

( Best ) Active Marketing

by Mr. DJ 28/07/2021
written by Mr. DJ

Active Marketing

Active Marketing Meaning

Active marketing requires action on the part of the small business. Active marketing may mean networking with other businesses or working on building your referral pool. It also includes selectively advertising to drive in new business. This type of marketing is deliberate and purposeful. It takes effort. Active marketing often includes meeting vendors and customers face to face, holding sales appointments, and making cold calls. This kind of marketing requires skill and persistence.

Another form of active marketing can be an television commercial, according to DigDev Direct. Though it may seem passive because the commercial was premade, the company actively made and paid to air the commercial. They put their brand out there for people to see, rather than waiting for people to come find them.

4 Benefits of Active Marketing

It can take a while to wrap your head around the fact that marketing never ends. As long as you’re in business, you don’t just execute a marketing campaign once and then stop. Consistent, active marketing is vital to your company’s success. This applies to marketing as a whole, and equally to every marketing campaign and initiative you carry out.Active MarketingWhy is this? Obviously, most companies want to keep growing. And marketing is a key engine for growth, whether it’s increasing the number of customers, growing revenue, or boosting market share.But while growth is an important reason to market your company, there are plenty of other reasons you should focus on active marketing.

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Active Marketing to Maintain a Reputation

Your reputation is important to the success of your business, especially your internet presence. All day long, customers and prospects can search the web to learn more about your company — and what they find could mean the difference between serious growth and serious loss. For instance, 90 percent of prospective customers will fail to convert if they see your business, product, or service has mostly 1-star or 2-star reviews.

Marketing ReviewsFortunately, if you’re active in marketing your company, then you get a say in how it’s perceived in the marketplace. Proactively reach out and shape your reputation online. Don’t allow customers, competitors, and the public at large to dominate the conversation about your brand, for better or for worse. Reputation management requires marketing.

Take Action: Take hold of the media you can control — your own. Direct mail marketing isn’t subject to all the rule changes of SEO and online marketing. While you must establish and maintain a two-way conversation on social media like LinkedIn, Facebook, Twitter, and others, it’s important to fully utilize the media that give you the most control over your messaging. Communicate regularly with your audience through every applicable channel, and use quality branded material to make a great impression and cultivate your brand story. (While you’re at it, connect with The Newsletter Pro on LinkedIn.)

Active Marketing to Attract the Right Audience

Are you waiting for customers to come to you? Then you’re at somewhat of a disadvantage. If you’re not evolving and implementing new marketing strategies, you won’t be able to attract the audience you want. You may focus your efforts on adding a new, different target audience. Or it might mean starting over with a completely new customer base. Either way, your messaging, visuals, and strategy should change when you’re trying to reach a new audience.Active Marketing

For example, a lot of companies are doing their best to consciously court millennials. But you’ll find it difficult to get them on board if you don’t adapt your approach to incorporate millennials’ values as well as mobile and social sharing. This requires an active approach to marketing.

Take Action: Create a buyer persona with a name. For instance, Alexis is a 55-year-old career woman with an advanced degree. Where does she shop? What problems is she trying to solve? Then develop a story that speaks to that persona specifically. Focus on what you do for them, not just what you do. By fleshing out a buyer persona and crafting a brand story with that persona in mind, your marketing will better resonate with your target audience.

Active Marketing to Keep Up With Changes

There are all kinds of changes that occur in the course of doing business, from releasing a new product, to adjusting an internal process, to alterations in the competitive landscape. These can have a significant effect on what you need to communicate to your audience.

Active MarketingHow will your audience find out about these updates? There are all kinds of marketing channels, but you might consider print newsletters. They are particularly beneficial to a company’s marketing efforts, because they allow you to communicate in a way that’s received as informative and helpful, rather than salesy.

Another complication is that marketing itself doesn’t exist in a vacuum. You’ll find it helpful to tweak your message or marketing channel as these changes happen. Similarly, the world around you is changing. Google’s regular algorithm changes alone require you to change your approach to content marketing. You’ll need marketing in order to keep up with these changes.

Active Marketing to Make It Better

No matter how successful your marketing campaigns are right now, they can always be better. If you have a list of great marketing ideas you haven’t had a chance to try yet, make it a priority to test some of them. Even if your reputation, audience, and existing marketing plans are all fine, innovative marketing ideas may lead to even better results.

The process of reviewing your marketing can follow three simple steps:Better Active Marketing

  1. Review the goals you set.
  2. Analyze the metrics and overall growth of your company to figure out what worked and what didn’t.
  3. Set new goals and get to tracking. Remember to adjust as you go along.

Try to follow this simple sequence every three to six months. If you wait a whole year, you may find yourself far afield from where you should be — especially in today’s fast-paced environment.

Take Action: Put a review process in place for every marketing initiative you implement, and make sure to schedule a follow-up so you follow through. Here’s an example: The Newsletter Pro has a system in place for preparing and attending conferences and tradeshows. But it’s not a static process. Every time we attend a new conference, we fine-tune our strategy and focus on answering the question, “How can we better engage our audience?”

As you can see, marketing is so much more than just a way to grow your business. It’s truly the lifeblood of a business at any stage. From strategizing to implementation to analysis, every facet of the marketing process is constantly in a state of flux.

How to adopt an active marketing strategy for your business

UNC Kenan-Flagler Business SchoolWhen asked how he was so good at scoring goals, Wayne Gretzky – the greatest hockey player of all time – said, “I skate where the puck is going to be, not where it has been.”

It seems like such an obvious concept. But if it was only that easy, everyone would be doing it.

The sentiment of Gretzky’s comment maps extremely well to business. If we, as business executives and leaders, could see the future direction of the market – of customer demand, of what the world wanted – we would simply skate to where the “puck” is going and deliver on that need. Sadly, it’s not even close to that easy. It takes more than a crystal ball to accurately predict the future movements of your business environment and stay in front of those needs.

As a strategy and marketing executive at a high velocity technology startup, I’m focused on trying to solve these exact problems. There are a few specific points that I’ve learned over the years that can help you skate to where the puck is going instead of where it has been.

Push the market, don’t chase the data.

There are two different types of strategic marketing models: active and passive. The models are separated by a different thought process around the decisions and choices that you have to make on a daily basis.

Active marketing is focused on innovation and creating or inventing a market. What matters most in active marketing is making sure your strategy, product direction and marketing message are all pushing the market forward towards a place where only you can deliver the promised solution. Active marketing is creative, inventive and innovative all at once, and it results in a distinct competitive advantage.

Passive marketing is a method in which you look to your competitors and customers and react to what they tell you is happening in the market. It’s focused on the data that you collect about the market, reacting instead of looking forward to what is coming well beyond what the data points indicate today.

Don’t get me wrong – you have to collect and analyze the data around your customers, competitors, market dynamics and technology changes. But you can’t fall into the trap of expecting the data to tell you what to do. It’s never that simple. Data shows you the market dynamics as of a moment in time.

The high velocity technology market changes so quickly that by the time you are able to collect data and turn it into a fully baked feature or product, the market has moved and is on to another ask. You have to continuously use data collection to inform strategic decisions about market direction and move your company and technology to deliver on what the buyer doesn’t yet know they want. In essence you have to take all the data you can get, analyze it and make predictions on where the market will be in the future (not today), then make a plan for how you can move to intercept that prediction while continually analyzing data to uncover any required corrections to your course. This is the crux of active marketing.

Timing is everything.

Active marketing sounds like something that is difficult, but it can be achieved. The trick to success is timing.

Like a hockey player skating towards an open section of ice, you may have to slightly slow down or speed up your velocity in order to time your entrance into the gap and get a clean shot at the goal. Strategic marketing is no different. If you are too early to market, you’ll skate right by the buyer demand and someone else will pick up your miss. If you are too late to the market, you’ll miss the chance to even have a shot at success – allowing others to take control of the situation and move the market in another direction instead.

The difficulty of nailing market timing is knowing when and how to speed up or slow down. The best strategic marketers will understand timing intuitively – it’ll be a “gut feel.” Wayne Gretzky just knew how fast or slow to skate to be in the right place at the right time. In lieu of having this innate ability, there are a few things you can do to improve your market timing expertise.

Practice predicting market and business dynamics. This will improve your instincts. Just like a hockey player does drills and scrimmages to become proficient at flow and timing, to be a strategic marketer you have to do the same thing. Practice following a few specific markets or businesses in detail and try to predict the success of the macro moves of the entities on the battlefield.

Will the latest product release be successful? What does it mean to the market? How will competitors respond to this move? What will happen to the market when they do?

Make sure you write this down! Publish your predictions on public forums such as Twitter, Facebook or Seeking Alpha. Open yourself up for discussion and criticism so that you can learn from the opinions of others who are also practicing strategic prediction.

Push the market with innovation. You aren’t a passive player in the market – you are an entity that has the ability to move markets and make things change. You can speed up your company’s trajectory towards a prediction you’ve made by innovating and pushing the market forward. Don’t be complacent and hope that your prediction was correct. Create new technology, messaging, vision, features, etc. that will help your prediction come true. There is no reason to sit back and hope you are right. Be an activist investor and make your investment successful.

Don’t be afraid to let them catch up. Sometimes you out-skate the puck. Sometimes what you create or innovate is beyond what the market can currently consume. Don’t be afraid to let your competition catch up. As long as you have a lead and are thinking ahead of the competition, it’s no big deal to let other market players back you up on what you are selling. An active marketer will quite often move too fast – but if your predictions are correct, the rest of the market will start to adopt your messaging, copy your features and otherwise execute passive marketing behind you. Let them do just that. It reinforces what you have created as successful and lets the buyer catch up to where you are. When you successfully skate to where the puck is going to be, go ahead and let it come to you. And while you are waiting, plan your next move!

Dream big, execute small.

Every time that Wayne Gretzky took the ice, he was thinking “I’m going to score a goal.” There was no doubt in his mind that he is going to succeed in what he sets out to achieve. As a market mover, you have to think the same way. Believe that the market you create or push forward will succeed and that you will be the one to deliver on that need.

Dream big. The trick to making sure you are successful is to always remind yourself of the end goal and destination – and to make sure that goal is enormous and difficult to achieve. Tell yourself: this company is going to be a billion dollar valuation. I’m going to hit $100M in revenue next year. Engineering will double in size in the next six months.

It doesn’t matter what your goals are. What matters is that they are large enough to keep you dreaming and to give you the drive to make the decisions that will push your market towards these goals.

Execute small. It’s easy to be overwhelmed when you dream big, so break these dreams down into smaller chunks to execute. Then, break those chunks down into even smaller chunks until you’ve created consumable chunks that you can get up and achieve every single day. You have to execute very small in order to succeed big.

Adjust frequently with minor changes. The interesting thing about dreaming big and executing small is it gives you the ability to correct your course. Chances are you aren’t going to change your biggest dream very often. It’s huge, after all. It’s a major thing that has so many moving parts that it’ll be difficult to adjust that vision more than once or twice in the lifetime of a company. By breaking your dream into very small, consumable chunks, you give yourself the ability to course correct in real time.

As external and internal forces to your company morph and change, you’ll have to adjust the particular small chunks you’ve created. . You might lose a key employee, the competition might come out with a better widget than your design, or your marketing message may need adjustment. These things don’t change the overall goal, but they may change the path you take to get there. Don’t be afraid to adjust your short and mid-term decisions in order to continue down the path towards your main destination. Execute with patience on the bigger-sized chunks and don’t be afraid to adjust the small to mid-sized ones as necessary to win.

28/07/2021 0 comment
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Active Listening
MARKETING AND STRATEGYMBA Corner

( Best ) Active Listening , Types, Importance and How To Became Active Listner

by Mr. DJ 27/07/2021
written by Mr. DJ

Active Listening

What is Active Listening?

‘Hearing’ is an involuntary act of acknowledging a sound or noise. ‘Listening’ is a voluntary act wherein the listener makes an attempt to grasp the external sound or noise. ‘Active Listening’ is an advanced form of listening, wherein the listener not only grasps the sound or words, but also understands the body language of the speaker but also the underlying message of the speech. Active listening is achieved when the listener is able to reproduce the said speech in his own words or questions to the listener. The listener pays unwavering attention and makes a conscious effort to concentrate on the speaker’s words and grasp the underlying message in the speech.

Active Listening

Features of Active Listening

Active listening involves more than just hearing someone speak. When you practice active listening, you are fully concentrating on what is being said. You listen with all of your senses and give your full attention to the person speaking.

Below are some features of active listening:1

  • Neutral and nonjudgmental
  • Patient (periods of silence are not “filled”)
  • Verbal and nonverbal feedback to show signs of listening (e.g., smiling, eye contact, leaning in, mirroring)
  • Asking questions
  • Reflecting back what is said
  • Asking for clarification
  • Summarizing

In this way, active listening is the opposite of passive hearing.

When you listen actively, you are fully engaged and immersed in what the other person is saying.

Much like a therapist listening to a client, you are there to act as a sounding board rather than ready to jump in with your own ideas and opinions about what is being said.

You Can Also Read 4 Rs Of Marketing, 5 Cs Of Marketing and 7 Ps Of Boom Bitner.  

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Examples of Active Listening Responses

It’s often easier to learn by reading examples. Here are some examples of statements and questions employed with active listening:

  • Building trust and establishing rapport: “Tell me what I can do to help.” “I was really impressed to read on your website how you donate 5% of each sale to charity.”
  • Demonstrating concern: “I’m eager to help; I know you’re going through some tough challenges.” “I know how hard a corporate restructuring can be. How is staff morale at this point?”
  • Paraphrasing: “So, you’re saying that the uncertainty about who will be your new supervisor is creating stress for you.” “So, you think that we need to build up our social media marketing efforts.”
  • Brief verbal affirmation: “I understand that you’d like more frequent feedback about your performance.” “Thank you. I appreciate your time in speaking to me.”
  • Asking open-ended questions: “I can see that John’s criticism was very upsetting to you. Which aspect of his critique was most disturbing?” “It’s clear that the current situation is intolerable for you. What changes would you like to see?”
  • Asking specific questions: “How long do you expect your hiring process to last?” “What is your average rate of staff turnover?”
  • Waiting to disclose your opinion: “Tell me more about your proposal to reorganize the department.” “Can you please provide some history for me regarding your relationship with your former business partner?”
  • Disclosing similar situations: “I was also conflicted about returning to work after the birth of my son.” “I had the responsibility of terminating some of my personnel, due to downsizing, over the last two years. Even if it’s necessary, it never gets easier.”

How To Becoming an Active Listener

There are five key active listening techniques you can use to help you become a more effective listener:

1. Pay Attention

Give the speaker your undivided attention, and acknowledge the message. Recognize that non-verbal communication also “speaks” loudly.

  • Look at the speaker directly.
  • Put aside distracting thoughts.
  • Don’t mentally prepare a rebuttal!
  • Avoid being distracted by environmental factors. For example, side conversations.
  • “Listen” to the speaker’s body language.

2. Show That You’re Listening

Use your own body language and gestures to show that you are engaged.

  • Nod occasionally.
  • Smile and use other facial expressions.
  • Make sure that your posture is open and interested.
  • Encourage the speaker to continue with small verbal comments like yes, and “uh huh.”

3. Provide Feedback

Our personal filters, assumptions, judgments, and beliefs can distort what we hear. As a listener, your role is to understand what is being said. This may require you to reflect on what is being said and to ask questions.

  • Reflect on what has been said by paraphrasing. “What I’m hearing is… ,” and “Sounds like you are saying… ,” are great ways to reflect back.
  • Ask questions to clarify certain points. “What do you mean when you say… .” “Is this what you mean?”
  • Summarize the speaker’s comments periodically.

Tip:

If you find yourself responding emotionally to what someone said, say so. And ask for more information: “I may not be understanding you correctly, and I find myself taking what you said personally. What I thought you just said is XXX. Is that what you meant?”

4. Defer Judgment

Interrupting is a waste of time. It frustrates the speaker and limits full understanding of the message.

  • Allow the speaker to finish each point before asking questions.
  • Don’t interrupt with counter arguments.

5. Respond Appropriately

Active listening is designed to encourage respect and understanding. You are gaining information and perspective. You add nothing by attacking the speaker or otherwise putting her down.

  • Be candid, open and honest in your response.
  • Assert your opinions respectfully.
  • Treat the other person in a way that you think they would want to be treated.
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