Trigger 5

* Why and when should a startup company gather secondary versus primary data to validate the business case?

http://www.managementstudyguide.com/secondary_data.htm

Secondary data is the data that have been already collected by and readily available from other sources. Such data are cheaper and more quickly obtainable than the primary data and also may be available when primary data can not be obtained at all.

Advantages of Secondary data

It is economical. It saves efforts and expenses.

It is time saving.

It helps to make primary data collection more specific since with the help of secondary data, we are able to make out what are the gaps and deficiencies and what additional information needs to be collected.

It helps to improve the understanding of the problem.

It provides a basis for comparison for the data that is collected by the researcher.

Disadvantages of Secondary Data

Secondary data is something that seldom fits in the framework of the marketing research factors. Reasons for its non-fitting are:-

Unit of secondary data collection-Suppose you want information on disposable income, but the data is available on gross income. The information may not be same as we require.

Class Boundaries may be different when units are same. 

Before 5 Years	After 5 Years
2500-5000	5000-6000
5001-7500	6001-7000
7500-10000	7001-10000

Thus the data collected earlier is of no use to you.

Accuracy of secondary data is not known.

Data may be outdated.

Evaluation of Secondary Data

Because of the above mentioned disadvantages of secondary data, we will lead to evaluation of secondary data. Evaluation means the following four requirements must be satisfied:-

Availability- It has to be seen that the kind of data you want is available or not. If it is not available then you have to go for primary data.

Relevance- It should be meeting the requirements of the problem. For this we have two criterion:-

Units of measurement should be the same.

Concepts used must be same and currency of data should not be outdated.

Accuracy- In order to find how accurate the data is, the following points must be considered: -

Specification and methodology used;

Margin of error should be examined;

The dependability of the source must be seen.

Sufficiency- Adequate data should be available.

Robert W Joselyn has classified the above discussion into eight steps. These eight steps are sub classified into three categories. He has given a detailed procedure for evaluating secondary data.

Applicability of research objective.

Cost of acquisition.

Accuracy of data.

_________________

A common classification is based upon who collected the data.

Primary data: Data collected by the investigator himself/ herself for a specific purpose.

Examples: Data collected by a student for his/her thesis or research project.

(In movies) The hero is directly told by the heroine that he is her “ideal man”.

Secondary data: Data collected by someone else for some other purpose (but being utilized by the investigator for another purpose).

Examples: Census data being used to analyze the impact of education on career choice and earning.

(In movies) The hero reads a fictional account of the heroine’s “ideal man” (written for a course in English composition) that seems to describe him accurately. He seeks confirmation from his friends, concluding that he is her “ideal man”. (He never asks her directly, but assumes the “facts” are correct).

Some Advantages of using Primary data:

The investigator collects data specific to the problem under study.

There is no doubt about the quality of the data collected (for the investigator).

If required, it may be possible to obtain additional data during the study period.

Some Disadvantages of using Primary data (for reluctant/ uninterested investigators):

The investigator has to contend with all the hassles of data collection- 

deciding why, what, how, when to collect

getting the data collected (personally or through others)

getting funding and dealing with funding agencies

ethical considerations (consent, permissions, etc.)

2.   Ensuring the data collected is of a high standard-

all desired data is obtained accurately, and in the format it is required in

there is no fake/ cooked up data

unnecessary/ useless data has not been included

* What secondary data do you need for your business idea?

Pollution,

 demand of fish in Finland.

Sea food restaurants in Finland

Groceries

Wages and salaries

Agricultural variables and practices (rainfall, crops, soil types, and uses, irrigation, etc.),

Economic situation

* How to gather secondary data for your business idea? List the links to your relevant sources of secondary data.

Stats.fi

PBL Task 4

Promotion Mix

Learning Objective #1

  Advertising: Presentation and promotion of ideas, goods, or services by an identified sponsor. Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails. (Always in Paid Form non personal)

  Personal selling: A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face or via telephone.

  Sales promotion: Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.

  Public relations: Paid intimate stimulation of supply for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media. Examples: Newspaper and magazine articles/reports, TVs and radio presentations, charitable contributions, speeches, issue advertising, and seminars.

  Direct Marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.

Source: Boundless. “The Promotion Mix.” Boundless Business. Boundless, 26 May. 2016. Retrieved 25 Sep. 2016 from https://www.boundless.com/business/textbooks/boundless-business-textbook/marketing-communications-17/promotion-104/the-promotion-mix-492-5112/

The marketing mix is . . . The set of controllable tactical marketing tools – product, price, place, and promotion – that the firm blends to produce the response it wants in the target market.

Kotler and Armstrong (2010).

Learning Objective #2

http://economictimes.indiatimes.com/definition/advertising

Definition of 'Advertising'

Definition: Advertising is a means of communication with the users of a product or service. Advertisements are messages paid for by those who send them and are intended to inform or influence people who receive them, as defined by the Advertising Association of the UK.

Description: Advertising is always present, though people may not be aware of it. In today's world, advertising uses every possible media to get its message through. It does this via television, print (newspapers, magazines, journals etc), radio, press, internet, direct selling, hoardings, mailers, contests, sponsorships, posters, clothes, events, colours, sounds, visuals and even people (endorsements).

The advertising industry is made of companies that advertise, agencies that create the advertisements, media that carries the ads, and a host of people like copy editors, visualizers, brand managers, researchers, creative heads and designers who take it the last mile to the customer or receiver. A company that needs to advertise itself and/or its products hires an advertising agency. The company briefs the agency on the brand, its imagery, the ideals and values behind it, the target segments and so on. The agencies convert the ideas and concepts to create the visuals, text, layouts and themes to communicate with the user. After approval from the client, the ads go on air, as per the bookings done by the agency's media buying unit.

______________________________________________

http://www.creativeguerrillamarketing.com/what-is-guerrilla-marketing/

Guerrilla Marketing is an advertising strategy that focuses on low-cost unconventional marketing tactics that yield maximum results.

The original term was coined by Jay Conrad Levinson in his 1984 book ‘Guerrilla Advertising’. The term guerrilla marketing was inspired by guerrilla warfare which is a form of irregular warfare and relates to the small tactic strategies used by armed civilians. Many of these tactics includes ambushes, sabotage, raids and elements of surprise. Much like guerrilla warfare, guerrilla marketing uses the same sort of tactics in the marketing industry.

This alternative advertising style relies heavily on unconventional marketing strategy, high energy and imagination. Guerrilla Marketing is about taking the consumer by surprise, make an indelible impression and create copious amounts of social buzz. Guerrilla marketing is said to make a far more valuable impression with consumers in comparison to more traditional forms of advertising and marketing. This is due to the fact that mostguerrilla marketing campaigns aim to strike the consumer at a more personal and memorable level.

_______________________________________________

What is 'Zero-Based Budgeting - ZBB'

Zero-based budgeting (ZBB) is a method of budgeting in which all expenses must be justified for each new period. Zero-based budgeting starts from a "zero base," and every function within an organization is analyzed for its needs and costs. Budgets are then built around what is needed for the upcoming period, regardless of whether the budget is higher or lower than the previous one.

 Investopedia http://www.investopedia.com/terms/z/zbb.asp#ixzz4LIOFyRAq

Learning Objective #3

http://smallbusiness.chron.com/calculate-roi-sales-promotion-60401.html

Promotions are a necessary expense of running your business and increasing brand awareness and sales. Small businesses should calculate the return on investment, or ROI, of sales promotions in order to determine which campaigns or advertising mediums are more effective for your company and your bottom line.

Collect Your Advertising Data

During your sales campaign, regularly collect data on the promotion. For example, if it is an online campaign, record data on the number of daily impressions and clicks the campaign delivers. If it's a print campaign, get data on the circulation and distribution of the campaign. Before your sales promotion runs, target your advertising vehicles based on a target audience profile and the sales goals you wish to accomplish.

Analyze Your Return

Determine results of your sales promotion as they relate to your business. For sales promotions, the most obvious measure of return is revenue generated from the promotion. Review your sales numbers to determine the amount of sales that resulted from your promotion. In order to get a more accurate view of how many sales were a direct result of the campaign, use trackable sales methods in your ad. For example, use unique website landing pages or phone numbers in the ads so you can directly track the number of sales that result from these channels. Once you know the amount of sales revenue that results from your promotion, determine your gross profits from those sales by subtracting the cost of the goods sold from your revenue. For example, if you sell a shirt for $10, but it costs you $3 to buy it, when you sell 10 shirts, your revenue is $100, but your profit is $70.

Determine Your Total Campaign Costs

Calculate the total cost to run the sales promotion. Track these expenses from the onset of the project to get an accurate account of expenditures. Costs could include the sales promotion purchase price, freelance or design fees, and any employee time or resources put into the complete sales promotion process.

Calculate Your Return on Investment

Calculate your return on investment for the campaign by subtracting your sales promotion total cost from your gross profits, dividing that number by your sales promotion cost and then multiplying that number by 100 to get a percentage. For example, if your promotion yielded $1,000 in profit but cost $500, your ROI would be 100 percent. An ROI of 100 percent means the promotion led to a profit that was twice the cost. It's important to note that this number is a profit in relation to the total expenses of the campaign. The "return" in the ROI equation is in direct proportion to the amount spent, or the investment.

PBL Task 3

Place/Distribution 

• levels of marketing channels

Definition: Channel Levels (http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/2585-channel-levels.html)

Channel level refers to the intermediary in marketing distribution channel between the producer/manufacturer and the end consumer. Every channel level plays a role in making the good available to the end consumer. The number of channel levels between the producer and consumer could be 0,1,2,3 or more.

There are basically four types of marketing channels:

• Direct selling; Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. Peddling is the oldest form of direct selling.
  Modern direct selling includes sales made through the party plan, one-on-one demonstrations, personal contact arrangements as well as internet sales.
• Selling through intermediaries; A marketing channel where intermediaries such as wholesalers and retailers are utilized to make a product available to the customer is called an indirect channel.
• Dual distribution; Dual distribution describes a wide variety of marketing arrangements by which the manufacturer or wholesalers uses more than one channel simultaneously to reach the end user. They may sell directly to the end users as well as sell to other companies for resale. Using two or more channels to attract the same target market can sometimes lead to channel conflict.
  An example of dual distribution is business format franchising, where the franchisors, license the operation of some of its units to franchisees while simultaneously owning and operating some units themselves.
• Reverse channels.

Source: Boundless. “Types of Marketing Channels.” Boundless Marketing. Boundless, 26 May. 2016. Retrieved 18 Sep. 2016 from https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/marketing-channels-11/marketing-channels-in-the-supply-chain-76/types-of-marketing-channels-387-4051/

• Functions of marketing channels

::: The Role of Marketing Channels

Channel Functions and Flowsa marketing channel performs the work of moving goods from producers to consumers.Some functions constitute a forward flow of activity from the company to the customer;other functions constitute a backward flow from customer to the company. Amanufacturer selling a physical product and services might require three channels: a saleschannel, and a service channel.

Channel levels

a zero level channel consist of a manufacturer selling directly to the final customer.Major examples are door to door sale, mail order.A one-level channel contains one selling intermediary; a two-level channel contains twoselling intermediaries. These intermediates could be retailers, distributors.As the no. of levels increase the level of difficulty of information sharing andcoordination also increase. Channels normally describe a forward movement of productsfrom source to user.

Service Sector Channels

marketing channels are not limited to the distribution of physical goods. Producer of service and ideas also face problem of making their output available and accessible totarget population.

::: Channel-Design Decisions

analyzing customer’s desired service output levels1. Lot size2. Waiting and Delivery time3. Special convenience4. Product variety5. Service backup

Establishing objectives and constraints

Channel objectives should be stated in terms of targeted service output level. Channelobjectives vary with product characteristics. Bulky product such as building materialsrequires channels that minimize the shipping distance and the amount of handling.

Identifying major channel alternatives

Companies can choose from a wide variety of channels for reaching customers from salesforces to agents, distributors, dealers and direct mail. Channel alternative described by 3elements: the types of available business intermediaries, the no. of intermediaries neededand the terms and responsibilities of each channel member.

Types of intermediaries:

A firm needs to identify the types of intermediaries available

to carry on in channel work. No. of intermediaries: 3 stages are available: exclusive distribution, selective distributionand intensive distribution. Exclusive distribution means severally limiting a no. of intermediaries. Selective distribution involves the use of more than a few but less than allof the intermediaries who are willing to carry a particular of product. Intensivedistribution consists of the manufacturer placing the goods or services in as many outletsas possible.

Terms and responsibilities of channel members:

Price policy calls for the producer to establish a price list and schedule of discounts andallowance that intermediaries see as an equitable and sufficient.Condition of sale refers to payment terms and producer guarantee.Mutual service and responsibilities must be carefully spelled out, especially in franchiseand exclusive agency channels.

::: Channel management decisions1. Selecting channel members

Companies need to select their channel members carefully as they represent the companyto the customer. To facilitate channel members selection, produces should determinewhat characteristics distinguish the better intermediaries, for e.g. the no. of years in business, the growth and profit record and financial strength.

2. Training channel members

Companies need to plan and implement careful training programs for their intermediaries.

3. Motivating channel members

• Coercive power • Reward power • Legitimate power • Expert power • Referent power 

4. Evaluating channel members5. Modifying channel arrangements: Channel Integration and SystemsVertical marketing system

A VMS by contrast, comprises the producer, wholesaler and retailer. Acting as a unifiedsystem.

Corporate vs.

Administered vms: It coordinates successive stages of production and distribution

through the size and power of one of the member.Contractual vms: 1. Wholesaler-sponsored voluntary chains2. Retailer cooperatives3. Franchise organizations

Horizontal marketing systems

In which two or more unrelated companies put together resources on program to exploitan emerging marketing opportunity.Multichannel marketing systemsIt occurs when single firm uses two or more marketing channels to reach one or morecustomer segments.• Planning channel architecture

::: Conflict, cooperation, and competitionTypes of conflict and competition

Vertical channel conflict means a conflict between different levels within the samechannel.Horizontal channel conflict involves a conflict between members at the same level withinthe channel.Multi-channel conflict exists when the manufacturer has established two or more channelthat sell to the same market.

Causes of channel conflict

• Goal incompatibility• Difference in perception• Dependence

Managing channel conflict

Co-optation is an effort by one organization to win the support of leaders of another organization by including them in advisory council.Arbitration occurs when the two parties agree to present their arguments to one or morearbitrators and accept the arbitration decision.

Legal and ethical issues in channel relations

Many producers likes to develop exclusive channels for their products. Exclusive dealingoften include exclusive territory agreement. The producer may agree not to sell to other dealers in a given area. Producers are free to select their dealers, but their right toterminate dealers is somewhat restricted

Designing the Marketing Channel 6-2 Chapter Outline What is Channel Design? Key Term and Definition 

 Channel design: Those decisions involving the development of new marketing channels where none had existed before, or the modification of existing channels. Channel design is presented as a decision faced by the marketer, and it includes either setting up channels from scratch or modifying existing channels. This is sometimes referred to as reengineering the channel and in practice is more common than setting up channels from scratch. The term design implies that the marketer is consciously and actively allocating the distribution tasks to develop an efficient channel, and the term selection means the actual selection of channel members. 

11.09.2016

PBL task 2 Pricing

• Kotler, P. & Armstrong, G. 2014. Principles of Marketing. Pearson Education. Upper Saddle River.
• Wood, M. B. 2008. The marketing plan A handbook / Marian Burk Wood. Pearson Prentice Hall, Cop. Upper Saddle River.
• Donnelly, R. & Linton, C. 2009. Delivering Customer Value through Marketing. Elsevier Ltd. Oxford.
• Meldrum, M. & McDonald, M. 2007. Marketing in a nutshell. Elsevier Ltd. Oxford.

Whether planning for domestic or international marketing. all companies need to com ply with a variety of pricing laws and regulations. Some of these include: e No price collusion. In the United States, the European Union, and many other areas, competing firms are not allowed to collaborate in setting prices and cannot take other pricing actions that reduce competition. No minimum retail price. In the United States, United Kingdom, and some other countries, companies are not permitted to enforce a minimum retail price among channel members(although in some cases, a"suggested" retail price may appear on the package or price tag) No price discrimination. In the United States, a company usually cannot charge different prices for essentially the same product at the same time in the same market unless the lower price(s) are available through discounts or allowances that are open to all. However, there are exceptions; for example different prices may be allowed if the company has different costs, is responding to competition, or is clearing outdated merchandise.

No predatory The United States outlaws the aggressive u of low pricing. pricing to damage a competitor or reduce competition Price limius. Some nations set an upper limit on the price that can be charged for certain products, as Canada does with prescription drugs. Apart from applicable laws and regulations. marketers must make decisions about ethic dilemmas in pricing. Is it ethical for a company to raise prices during an ting s with emergency, when products may be scarce or especially valuable? Should a company set a high price for an indispensable product knowing that certain customers will be unable to pay? What are a company's ethical responsibilities regarding full disclosure of prices for upkeep, updates, or replacement parts? How far in advance should customers be notified of planned price increases, and what form should notification take? The chief information officer of Hyundai Motor America has complained about technology companies that attempt to"slip in surprise increases for maintenance, licensing, or other services. As difficult as the ethical aspects of pricing may be, "21 marketers must carefully think through the consequences on customer relationships and company image Internal Pricing Influences Within the organization, costs and break-even are critical influences on pricing Target ing and positioning strategy, product strategy, and other marketing decisions must also be factored into pricing plans.

planning pricing decisions
When planning pricing, marketers nrst must determine what s strategy intended to achieve, given the marketing, financial, and socielal objectives they bav also need to invesligare the various external innuences com nel members legal regulatory and ethical concerns) and internal influenc reak-even: Largeting and positioning strateg. Product strategy and other mar decisions that can affect pricing decisions Pricing objectives Because a product's price is lhe organization's source of revenue, marketers should establish specific objectives(or all pricing decisions These objectives must be consis tenl with each other and with the overall mission, direction, goals, and marketing plan objectives Due to market realities, organizalions may have to trade off one pricing objective for another. Rarely can a company boosl profitability while simultaneously raising its market share lo a much higher level, for example. This is why American Airlines, among other carriers has switched from pricing for market share to pricing for profilability, cutting routes and nights that fail lo meet profitabilily objectives Verizon Wireless one of the largest US cell phone carriers, is using pricing lar customer relention as well as for financial objectives.



http://www.knowthis.com/pricing-decisions/factors-affecting-pricing-decision

Internal Factors - When setting price, marketers must take into consideration several factors which are the result of company decisions and actions. To a large extent these factors are controllable by the company and, if necessary, can be altered. However, while the organization may have control over these factors making a quick change is not always realistic. For instance, product pricing may depend heavily on the productivity of a manufacturing facility (e.g., how much can be produced within a certain period of time). The marketer knows that increasing productivity can reduce the cost of producing each product and thus allow the marketer to potentially lower the product’s price. But increasing productivity may require major changes at the manufacturing facility that will take time (not to mention be costly) and will not translate into lower price products for a considerable period of time.

• External Factors - There are a number of influencing factors which are not controlled by the company but will impact pricing decisions. Understanding these factors requires the marketer conduct research to monitor what is happening in each market the company serves since the effect of these factors can vary by market.

PBL task 1

Defining product/service offering

Learning objective #1

http://www.dsef.org/2013/07/11/4-ways-to-make-your-product-seem-more-valuable-and-desirable/

• "get people talking" - in other words: promote your product wherever you are and how you want.  Like if i want to promote a museum or new phone i wil start telling my friends aboit all its desiers and benefits and trying to make them want to go to the museum (or buy a phone like mine, because its cool, isnt it?).
• "skip  the long features list" -  in order not to overwhelm the customer its better to voice only the main features of your product. SPARKLE ONES
• "highight ease of use" - the more simplier your product is, the more chances that a salesperson can discribe it to customers.

Learning objective #2

http://theconsumerfactor.com/en/4-factors-influencing-consumer-behavior/

http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1807-76922010000300004

• Cultural Factors: "Culture is crucial when it comes to understanding the needs and behaviors of an individual."
• "For a brand, it is important to understand and take into account the cultural factors inherent to each market or to each situation in order to adapt its product and its marketing strategy. As these will play a role in the perception, habits, behavior or expectations of consumers."
• "McDonald’s is a brilliant example of adaptation to the specificities of each culture and each market."

Learning objective #3

http://www.marketingdonut.co.uk/marketing/exhibitions-and-events/networking/benefit-from-networking

http://smallbusinessbc.ca/article/five-benefits-networking/

http://amazingbusiness.com/top-9-benefits-of-business-networking/

http://www.michaelpage.com.cn/advice/career-advice/career-progression/benefits-networking

•