MAKING STRATEGIC DECISIONS
STRATEGIC MARKETING MANAGEMENT
STRATEGIC PRODUCTION MANAGEMENT
INTRODUCTION
BUSINESS ANALYTICS FOR STRATEGIC
DECISIONS
Companies are continually innovating how business is
done as big data technologies become more prevalent
and affordable. And as a result of increased innovation
more data is piling up.
Develop the knowledge and tools you need to gain a
strategic advantage and impact the enterprise's
bottom line.
STRATEGIC MARKETING
MANAGEMENT
SALES MATTER! Every business is only as strong as is order
book. There are many examples of organizations that failed to make
the right decisions about sales, marketing or brand issues and
withered as their customers went to competitors. Sales and
marketing are crucial functions as product differentiation has
become less clear, prices have become more transparent and
customers have become more fickle and assertive.
This section explains how to meet customers' needs
profitably, building, on techniques and how to make
successful decisions about:
pricing;
selling techniques;
internet sales;
brand management;
customer loyalty
PRICING
Successful pricing requires a clear understanding of
the specific needs and nature of the target market -
what the customer wants and expects.
It also depends on the culture of the market, if a
particular pricing structure is common, strategies will
often follow it.
if the market is new and growing,
the aim must be to build and gain
market share as rapidly as possible.
Conversely, if it is in decline, price
cuts may be needed to attract the
dwindling number of customers.
PRICING STRATEGIES
1. Price differentiation. Charging different prices for the
same product in different markets based on what customers
will pay.
2. . Loss leading. Selling a product at a less than cost to
remove competitors or establish market share. It can be
dangerous if the product becomes trapped with a low price.
3. Target pricing. Targeting the level of profit the organization
is seeking, estimating sales volumes at a specific price and
then confirming that price.
4. Average cost pricing. Calculating the total costs and the
desired profit margin divided by anticipated total sales.
5. Variable pricing. Cutting prices to stimulate business or
raising them to control demand. The problem lies in
explaining to customers why prices are fluctuating when the
product is unchanged.
6. Customary pricing. Charging the same price
but reducing the product's specification
Customers may find this misleading and resent
a reduction in value.
7. Barrier pricing. Reducing prices aggressively -
usually temporarily - to deter or remove
competitors. This is similar to loss leading and
requires both the will and the money to support
it over time.
Deciding the Right Price
A. When making pricing decisions:
Calculate costs. Add together the direct costs of goods or
services and the sales and marketing of them, and add an
appropriate amount for the overheads.
Estimate sales volumes and assess the company's
competitive strength. Take into account customer needs,
market maturity, sales techniques, the culture and
expectations of the market and the ability to sustain the
product portfolio.
B. To make
sure pricing decisions are realistic, consider:
Customer perceptions;
How easily the price can be sustained
The likely response of competitors;
How the pricing decision relates to other aspects of
strategy, including brand management, product
profile and the development of the business.
II. SELLING TECHNIQUES
One wrong move can hand the initiative to
competitors and customer perceptions can be
difficult to alter. Sales decisions must be based
on an understanding of customers, a
commitment to service and a focus on
profitability, but applying these principles can be
difficult.
There are several ways to keep sales decisions on track:
1. View the situation from another perspective - ideally
that of your customers.
2. Prepare a plan of action that will deliver success.
3. Avoid basing decisions about customers on
assumptions. Sustaining a dialogue with customers
offer greater insights of a higher quality.
4. Highlight the product's benefits, not just its features,
and highlight where it compares favorably with
competitors' products.
5. Share information and insights about customers
throughout the organizations and with others
involve to better coordinate activities and
decisions.
6. Build customer loyalty and respect for your brand.
Satisfied customers are easier to keep and sell to
repeatedly.
7. Consider using a range of incentives such as
discounts or easier payment terms to close the
deal, but make sure payment will be made on the
terms agreed.
III. INTERNET SALES
Selling on the internet or online selling offers
many advantages, not just connecting with more
potential customers across a wide spectrum.
However, the internet is also a source of strong,
hidden undercurrent that can blow plans off
course or drown them in technology. The benefits
are:
1. Increasing sales both to current and
potential customers;
2. Reducing sales costs;
3. Satisfying more customers so that
they return and generate market
share and competitive advantage by
reinventing whole industries.
Reducing Selling Costs and Improving
Efficiency Through Online Selling
Online selling provides the latest details about
products, testimonials, special offers and customer
or market intelligence. It is especially valuable
when in-depth product information is needed, as
this can be made available directly to distributors
as well as the sales force.
Online
selling allows products to be evaluated quickly and
without assistance, which can be helpful with complex
products or in rapidly evolving markets. This has several
advantages:
providing an immediate response to customers' enquiries;
reducing the lead time for sales;
ensuring accurate transmission of order details; and saving
time and effort. In effect, doing it better, more quickly and
more cost-effectively.
Lastly, online selling can cut inventory costs when products
are made to order.
Building Customer Loyalty Online
The internet makes it easier for customers to do business with you. It
satisfies them, it encourages them to come back, and it cuts sales costs
through increasing customer loyalty.
The elements to building customer loyalty online are as follows:
1. Customer will return to a website if they believe it is relevant to
them.
2. The website must be easy to use.
3. The website should be accurate and immediate, offering the chance
to question or change choices before confirming details without
raising fears that the order will go wrong.
Issues Affecting Online Business Actions
content;
communication;
customer care;
community and culture;
convenience and ease;
connectivity (connecting with other sites and also with users);
cost and profitability;
customizations;
capability (dynamic, responsive and flexible);
competitiveness
IV. BRAND MANAGEMENT
Brands are complex assets with distinguishing
features. They assist customers to understand
what they are being offered or buying. A popular
method of managing brand is to view it as
having a personality.
A strong brand identity:
1. Commands a substantial price premium for a product,
exceeding the extra production and marketing costs. The
added value comes from the trust the brand enjoys.
2. Builds customer loyalty. Customers can identify preferred
brands easily, becoming repeat purchasers.
3. Gives new products a flying start by exploiting the
strengths of an established brand.
4. Helps the product extend its geographic market and
spreads the brands popularity.
5. Extends the life of a product.
V. CUSTOMER LOYALTY
A popular way to build repeat business is to
have a customer loyalty programme. It can
provide insights into the brand values of the
company as well as the threat they pose to
competitors.
Building Customer Relationships
There is a misconception that to sell successfully you
must be aggressive. This leads to inappropriate behavior.
For example, sales people can become evasive, pushy
and aggressive, or overly talkative. Influencing people to
buy depends on getting behavior right, balancing
openness and assertiveness with warmth and
competence. Combined with a strong product or brand,
this goes a long way towards building customer loyalty.
Business’s Customer Focus
What is Customer Focus?
Customer focus means putting your customers'
needs first. Customer-focused businesses foster
accompany culture dedicated to enhancing customer
satisfaction and building strong customer
relationships.
5 Tips for Building an Effective
Customer Focus Strategy
1. Encourage Collaboration
Becoming a customer-focused organization requires teams to work
together to create a consistent, overall better experience. In fact, more
than 70 percent of customers expect companies to collaborate on their
behalf.
And collaboration pays off - according to Benchmark research, sales and
support teams that collaborate have:
More leads • More deals created • More deals won
2. Make Your Customers Feel Heard
"Making the customer feel heard is a huge part of customer
focus," says Brummel. "And when they do not feel heard, that
is when the experience can quickly go south.
To ensure satisfied customers that feel heard, companies will
need that same connective layer of tissue. This gives them the
full story on the customer, such as:
Their name •
Account information
When they last reached out
3. Meet Your Customers Where They Are
It might seem easier to focus on a single
communication channel and providing a great
experience there. But communicating according to
your customers' channels of choice is a powerful
driver of loyalty.
A great customer experience is one that is easy.
Customers don't want to have to put effort into
reaching your brand, and nor should they. That is
why customer-focused companies meet their
customers where they are.
4. Use Feedback to Get Better
Knowing how to handle customer feedback is another
important factor in becoming a customer-focused
company. Creating a feedback loop with your
customers is important. Your relationship with them,
like any healthy relationship, should be two-sided.
"Treating customers like partners and collaborators as
opposed to consumers of your good is one of the first
steps to creating a customer-focused culture," says
Brummel.
5. Combine
Data with Empathy
With the increasing amount of data available,
companies no longer have to guess what their
customers want or decide for them. Instead,
they can look to the trends. But taking a
customer-focused approach to data does not
mean using data blindly. Rather, it involves
combining data with empathy.
