Campaign logistics: The backbone of modern marketing methods

By David Hamer

Advances in technology now allow consumers who use a hard drive when recording their favorite programs to skip past the adverts with unashamed glee. People are constantly bombarded with marketing messages not only via their televisions, but also when using their computers for work and pleasure. 

When overloaded with these messages, consumers tend to switch off without even realizing it, and businesses are finding that their marketing budget has not produced an acceptable return on investment. Finding an appropriate way to complement these traditional methods of marketing their products has become a high priority for many business owners who are desperate to stay afloat financially.

Experiential marketing

Carried out efficiently, experiential marketing has the potential to increase long-term sales forecasts, and get your business noticed on a local level. This method of marketing involves engaging with members of the public in a fun and memorable way. They can sample your products with no pressure to buy, but the concept is that they will remember your brand and talk about your products with their friends and family.

 This type of marketing could take place at venues such as: 

• Shopping centers
• Farmers markets
• Music festivals
• Trade fairs
• Town centre shopping precincts

The main consideration is your target market, and where you are most likely to find them.

Campaign logistics

Apart from a first-class product, logistics is probably the most important aspect of an experiential marketing campaign. You may have planned the whole event meticulously, but if the plan is not carried through successfully, it will have been a wasted effort. Choosing a professional logistics company who have experience with this type of marketing campaign can mean the difference between success and failure.  

A good logistics company will be able to offer you invaluable practical and administrative assistance with your plan. For example, they could provide: 

• A choice of temperature-specific storage facilities for your product, whether that is at frozen, chilled, or ambient temperature.
• A wide range of transportation options, from small vans to articulated lorries or trucks.
• Fully-trained staff to support your marketing team.
• One point of contact that enables efficient communication should your plan change at any time.

An experienced campaign logistics company will ensure that your event runs smoothly, and that your target customers enjoy a memorable experience.

A positive experience enjoyed by many people will ensure that your brand is noticed, both through the actual event, and more importantly through the word-of-mouth recommendations that will follow.

This article, written by David Hamer, is one of many he has published on the subject of logistical solutions in marketing.

Guest post: Any press is good press: The worst marketing tactics that paid off

By James Maloney

PD

Do controversial ads really work? Some marketers believe that they do. In fact, they believe that negative press is a good thing. People just love mistakes, blunders and bloopers. This may be true, and there are ads that have been able to get away with it, but then, the risk of running controversial ads may be just a little bit too great.

Some totally bad ads got away with it by making the brand popular and increasing sales. Unfortunately, it can easily be attributed to luck more than the marketing tactic itself. For example: The Beatles came out with the "Yesterday" and "Today" album. Now, the Beatles are the Beatles. These guys were the most popular band at the time. However, the album had a photo of the Beatles smiling with mutilated corpses of dolls scattered around them.

There were too many complaints about the cover of the album that they just had to recall it. Fortunately, the band was so famous that this controversy even made them more popular. Today, if you can find a copy of that album with the mutilated dolls cover, you can easily sell it for thousands of dollars.

It was sheer luck that the marketing tactic, although a big failure, turned out to be a success. This is probably why rock bands today love making controversial albums. However, we need to remember that the Beatles were so famous and everything they did seemed to be perfect. If anyone could get away with this marketing blunder, they could.

There are also those commercials that are extremely annoying. Webuyanycar had a commercial that was voted to be the most annoying in the UK. Fortunately, the business of the company was tied in to this type of commercial. Let’s face it, if you had a car that totally annoyed you, you would want to get rid of it and guess who you would think of first. You would think of that commercial that annoyed you too.

Marketing tactics that end up being very controversial will work, but not all the time. These tactics will only work in the right time and for the right product. Most of the time, controversial commercials only create controversy and may not increase sales at all. How would you consider a marketing tactic to be a success if it does not improve sales?

There are plenty of marketing techniques that will work and they do not have to be controversial. There are ads from decades ago that people still remember and these weren’t controversial at all.

When you use controversy to market a product, there is a very big chance that the product will end up negatively in the public’s eye. This is a risk that some marketers are willing to take in order to boost sales forecasts, but would the business be able to take this risk? Controversy can be a good choice, but not all of the time and marketers should remember this when marketing their brands or products.

This guest post is contributed by James Maloney, author of the Good Business Blog.

How behavioral finance influences stock market investing

 Transition from normal to abnormal market behavior 

Image attribution: Sharronzabary; CC BY-SA 3.0

Stock market investing and financial decision making is linked to behavioral science. Human behavior underlies quantitative models, algorithm based trading, fundamental analysis, and valuation equations in finance. In other words, it is another important sphere of finance that is relevant to stock market events. Since human behavior cannot currently be scientifically predicted on a continual basis as evident in the inability of game theory and political analysis to do so, the 'next best thing' may be behavioral finance in the sense it can supplement scientific evaluation. 

Behavioral finance

The field of behavioral finance postulates and theorizes psychological motivations form a basis for individual financial decisions. A number of different concepts relate to this, of which optimism bias is a well known one. Broadly speaking optimism bias is a human trait that looks at life and aspects of  it such as the stock market with a less than realistic assessment. Whether or not attributes of behavioral finance studied are human adaptations or instinct is perhaps given less weight than their relevance to finance. For example, how 'compartmentalization', a theory of identity discussed by Psychlopedia and others, can influence investing behavior in the stock market.

Market psychology

Market psychology is an aspect of behavioral finance. Market psychology refers to specific behavioral decisions that are reflected by stock markets in a way that defies purely numerical financial logic. Market psychology is generally associated with aggregated emotions such as fear, happiness, frustration and so on. Since humans are inevitably both logical, and emotional beings among other things, it is for the most part impossible to be quantitatively logical 100 percent of the time, which is when emotions and other psychological decision making processes can take hold of the stock market.

Individual psychology

Individual psychology is the component element of market psychology. A number of non-mathematical decision making techniques that 'behavioral finance' calls heuristics can affect investors' financial decisions. An example of a heuristic decision is one based on pattern recognition. Heuristics are an attribute of Prospect theory which according to Thayer Watkins of Saint Joss State University, states people are more likely to choose less money if the probability of acquiring it is 100 percent, but will take a greater risk for more money if the higher probability is lower than 100 percent in some cases.

Consumer behavior

On the buying side of the equation is consumer behavior. This relates to the psychology of consumerism which itself indirectly impacts the stock market through consumer expenditures, an economic statistic often consulted prior to stock trading. According to the University of Southern California at Marshall, consumer behavior deals with matters such as what social influences, thought processes  and perceptions affect buyer behavior. Moreover consumer behavior studies how these influences can themselves be affected by advertising and market research.

Steve Jobs Memorial at Apple Shop Shows Business Done Right

Tips for new sales people

Several techniques can be used to improve acclimation into a new sales job. Even though not all sales positions are the same, there are some largely universal sales tips and techniques that can assist many new sales positions. Below are a few tips that can develop your sales and marketing skill by helping make the most of your sales efforts.

• Learn about potential clients

Clients are number one in sales because the success of your job is heavily dependent on if they buy or not. Think of your clients first, your product or service second and your company and self third. This prioritizes your sales efforts in a way that can bring results and leverage to your bottom line objectives.

• Communicate effectively

Communication is a huge part of sales because what you say and how you conduct any sales effort determines how well your message is delivered apart from pre-designed sales information and scripts. Effective communication addresses a contact's emotions, schedule, needs, finances, interests and personality all at the same time.

• Employ sales tools

Sales literature and tools are supplements to your sales presentations, but not crutches for a lack of sales delivery expertise. Start thinking of your printed information as a tool to highlight key learning moments and points in a sales script or presentation. This will help develop and deliver a stronger product or service.

• Know your product

There's little point trying to sell something you know nothing about unless you're incredibly good at talking and connecting with people on an emotional level. Knowing your product is helpful no matter how well you communicate and helps you answer questions well demonstrating both professionalism and expertise.

• Distinguish leads quickly

Time really is money in addition to effort. By being able to identify hot and cold leads quickly will save you wasted effort and put you in control of the situation. For example, an opening question such as "Do you know how your car can make you money?" both introduces a need for more money, and identifies the willingness or interest of a lead to both answer your question and communicate.

• Follow up with leads

Potential buyers may be interested in a product or service but not so interested to follow up themselves. They may also be too busy or forget to follow up on what you have presented to them. Some leads may be entertained by your efforts and have no intention to buy so be precise and quick with your follow ups. Those that don't schedule a meeting by the second or third follow up go from warm to less warm.

• Utilize company resources

Keep in mind sales encompasses a vast amount of product and services, so each new sales job is likely to have differences related to product or service offered, lead generation procedures, sales support, payment structure and so on. Your manager and company may already have a strong sales program in place, this can be to your advantage if you are able to merge you pre-existing sales techniques into their sales program. You can also improve your sales methods by learning from more experienced sales people at your company, and by consulting additional resources such as the following.

Sources:

1. http://bit.ly/auqriV    (Bureau of Labor Statistics)
2. http://bit.ly/acWGcb (Sales Tips and Techniques)
3. http://bit.ly/9wUTLk (Entrapreneur.com)

Why Free Doesn't Always Mean "Free"

The word "Free" is sometimes merely eye bait marketing to encourage readers to take a closer look at a flyer, offer or advertisement. In the following offer a "Free" $500 Gift Card allows recipients to use the gift card to acquire sunglasses. There's a catch.

Here's a picture of the gift card, the card is designed to place more emphasis on its benefits than disadvantages with the words "Free", "$500", and "Gift Card" next to images of a pair of sunglasses and a watch. The other side of the card reveals the deal's caveats.

A close look at the back of the card reveals seemingly encouraging or helpful information reminding the holder not to lose the card and of its expiration date. A few lines into the small print it says "There is a 9% Service Fee to pay for the product delivery & handling expenses provided by our mailing company." If these were Oakley or Ray-Ban sunglasses a delivery and handling fee of 9% might be ok, but it certainly is not free when the gift card's balance can't be used to pay for the shipping and handling.

The prices of these seemingly 'expensive' sunglasses range from $90-$170 in the first picture with those numbers crossed out. The problem here is even though the sunglasses are 'free' the service charge is applied to the value of the sunglasses making 9% of $170 equal to $15.30 which might even be a multiple of the actual value of the sunglasses. When sunglasses cost a dollar at dollar shops what distinguishes these sunglasses from those? 

Basic statistical concepts: Data collection by sampling method

Data sampling is used to learn more about people such as consumers, events such as consumer spending, and information such as how much a consumer spends. In other words, data sampling is the acquisition of recorded numbers, information, facts or events in the form of a data set or multiple data sets. This data set is the data sample that is used in obtaining statistical answers for questions. 

Data can be collected in a number of ways, one of which is the sample method. Other methods of data collection include data mining, aggregate data gathering, random sampling, and qualitative research. This article will discuss data collection by sampling in terms of 1) its objectives, 2) how it can be done and 3) how it is analyzed.

Objectives of data sampling collection

Data sampling attempts to achieve some core objectives relevant to the statistical study in question. Specifically, sample data is utilized in a number of disciplines/fields to learn more about the subject. Moreover, in marketing, sample data may be used to learn more about people's behavior, choices, and actions for the purpose of improving marketing techniques and goals. The points listed below indicate some of the ways sample data can be used to determine.

• Information about a larger sample or population group

• Relationships between events, things or actions with other things, events or actions

• Identification of trends and patterns

• Grouping of sample data for categorization

• Analysis for research evidence and/or verification 

• Functionality of software analysis tools

An illustration of data sampling

Data sampling can be analyzed and implemented in a number of ways as we have seen. However, how this is done can vary so an illustration of how sample data is gathered and studied can be helpful. In the following hypothetical example, 1000 people are asked to partake in a statistical study. The study attempts to achieve market research into the juice flavor preferences of the 1000 people who are of different ages, gender and cultural background. To do this the following steps are taken:

• Create a simple survey with a few questions that can be used in the sample analysis

• Locate a suitable population sample from which to gather the data

• Of that population recruit 1000 of them to participate in the survey study

• Perform the research by having the population sample fill out the survey

• Analyze the data using statistical tools, software and/or techniques

• Draw conclusions based on the evidence presented by the sampling data

To further illustrate, data sampling helps answer questions like the following example: If 1000 people drink juice every day and have a choice of apple, tomato and grape juice what will be the affect on that sample population if orange juice is added to the selection? In this example, the dependent variable is the numbers of people selecting each type of juice, for example 700 apple, 100 tomato and 200 grape. The independent variable is the orange juice. The data sample is the number of people who drink each type of juice after the addition of orange juice.

Analysis of sample data

To further illustrate data sampling, data sets are used in statistics to deduce statistical relationships and characteristics of the sample data set and between independent and dependent variables within the sample data alone. Dependent variables are the individual records within a data set that are influenced by a change in the dependent variable. Sample data can be acquired a number of ways for example by primary or secondary research. The application and analysis of sample data can be used in many ways, some examples being double blind studies, control experiments, population surveys, hypothesis testing and more.

In the above example sample study of juice drinkers the affect of introducing orange juice to their choice of juices is the sample data. The data was collected with surveys rather than by observation(s), and the study was at one fixed point in time and not a over time. Thus, studies can be limited or extensive depending on what sample data is collected and how it is analyzed. How data is gathered and an analyzed can thus have a decidedly significant affect on the quality of the data and the extent of its use.

For example, the data can be analyzed simply for summary statistics such as X amount of people would drink orange juice if the given the choice out of 4 juices and Y amount of people would drink grape juice. However, the data can be further analyzed for accuracy using regression analysis in which alpha, beta and P-values are determined to aid in determining the validity of the statistics garnered through the sample data. These values help determine correlation, falsification due to pre-existing beliefs being tested, and probability of accuracy. Another way the information can be used is in cluster analysis in which the patterns of information are grouped for the purpose of assessing additional relationships. For example, the number of grape juice drinkers who would choose orange juice if grape juice were not available.

Sources:

1. http://home.ubalt.edu/ntsbarsh/Business-stat/opre504.htm#rrTopiinbuSt
2. http://brent.tvu.ac.uk/dissguide/hm1u3/hm1u3text3.htm
3. http://www.businessdictionary.com/
4. http://www.investorwords.com/
5. http://dictionary.babylon.com/

Uncontrollable Market Forces of a Marketing System

Image attribution: Renjith Kishnan. Standard royalty free license

Uncontrollable macro environmental forces of a marketing system include variables outside the scope of a marketing campaign's control. Marketers account for these factors before hand by gathering data, product testing, statistical analysis, forecasting etc., and this helps reduce the risk of uncontrollable macro-environmental factors. Some of these uncontrollable macro-environmental forces of a marketing system are described below.

• Consumer behavior

Consumer behavior is part of the marketing system and is often proselytized to using a marketing campaign. However, the accuracy of game theory, and consumer behavior formulas such as the Fishbein Model, statistical modeling, Luce models, Logit models etc. are limited in scope according to a study by John H. Roberts and Gary L. Lillien called 'Explanatory and Predictive Models of Consumer Behavior.'

• Economic environment

The economy at large is far greater than any single business or industry to control, and is consequently an uncontrollable macro-environmental force of a marketing system. The economy is part of a marketing system because it is what allows that system to functionally operate. If an economy experiences slow growth, or adverse financial conditions it can put pressure on both consumers and business marketing campaigns.

• Cultural norms and mores

Cultural zeitgeist, beliefs, and trends can change and this may happen more or less frequently depending on the political and social structure of that culture. Since these too are often larger than any single marketing campaign, there is certainly an element of uncontrollability when relying on such norms and mores to guide marketing decision in the marketing system in which commerce and culture exist side by side.

• Legislative mandates

A nexus of lobbying, power, political objectives, and goals of the legislative body influence the making of law. In terms of marketing, legal regulation is an uncontrollable macro-environmental force of a marketing system in so far as lobbying can fail and that not all regulation is designed to favor marketers. As regulatory policy changes, marketing projects may see a need to adjust in order to benefit under new and new regulations.

In summary, macro environmental conditions or forces can affect marketing in an uncontrollable way.  These uncontrolled variables can be studied and minimized however, thereby allowing greater control or less uncontrollability.

To illustrate the previous point, according to an article in the Journal of Macromarketing called 'Wisdom: Exploring the Pinnacel of Human Virtues as a Central Link from Micromarketing to Macromarketing', micro-marketing decisions on a large scale have an impact on the macromarketing environment.

This implicates micro-marketing as has having some control over what is considered uncontrollable at the macro level. Moreover, the article in the Journal of Macromarketing also claims uncontrollable variables caused by poor marketing decisions can be influenced by adjustments to 'knowledge shortcomings'.

Sources:

1. http://bit.ly/hweEJc (Roberts and Lillien)
2. http://bit.ly/ew1acj   (Managerial Marketing)
3. http://bit.ly/fQq5t9   (Journal of Macromarketing)

Marketing: Understanding segmentation variables

To understand what segmentation variables in marketing are, it helps to first know what market segmentation is. Market segmentation is the analysis of population demographics in marketing research so they can be categorized in specific ways. These specific ways of categorization in market segmentation are why segmentation variables are needed and used. Moreover, market segmentation variables define both how a demographic will be segmented and categorized. Market segments can also be divided into sub-categories or branched-categories in which additional variables are added to sub-sets of the market segment for more elaborate identification.


What segmentation variables are

Segmentation variables help marketers and/or market researchers refine target marketing and market segmentation to pre-determined goals and/or inquiries regarding the market segment. These variables can include and/or exclude a wide range of data depending on what the market researcher wants to find out. Some commonly used market segmentation variables include age, gender, and zip code. Segmentation variables span a range of functions, intents and descriptions and include the following types as also illustrated at Netmba:

• Geographic variables ex-zip code, area code, city

• Consumer behavior ex-spending habits, favorite products

• Interest information ex-attitudes, beliefs, lifestyle

• Population information ex-gender, age, income, occupation

Illustrating further, in times when basic demographic is not enough to segment a market additional variables are needed to further focus the categorization of potential and existing client profiles. In such cases the marketer may want to know about product preferences, income level, occupation, and other more detailed aspects of market segmentation. For example, if a marketer knows clients for ABC store generally come from 3 surrounding zip codes a geographic market segmentation is defined. However, other than this no additional information is available about the market. Questions such as why they shop at ABC store, when they shop there, and what they shop for may also be useful to the market researcher.

How segmentation variables are used

Market segmentation variables are used to answer specific questions and provide more detailed information about existing and potential clients in the context of business applications. To use the variables correctly proper statistical methods, and data collection techniques should be used so as to not disproportionately gather information, incorrectly collect that information, or haphazardly analyze and utilize it. 

Good segmentation variables address the budget, product, brand equity, revenue goals and other important aspects of business operations. If the wrong variables are used in the wrong way during market segmentation, the questions answered may not be appropriate for the company's objectives. Market segmentation variables are thus used in the following ways:

• Assist in determining market information

• Help companies identify who to market to

• Provide criteria to more specifically categorize existing market(s)

• Are used in statistical analysis and/or additional market research

• Allow companies to fine tune their marketing budgets and expenditures

To illustrate further, consider the ABC company once again. ABC company wants to find out three things, 1) who buys its products, 2) why these people buy their products and 3) what products they buy. In order to do this ABC company first defines its goals i.e. to answer these 3 questions, then creates a way to do this, ie. data gathering. Following this the data collected is analyzed using tools like histograms, regression analysis, and further qualitative and/or quantitative research. When the information is compiled and analyzed, a more detailed overview and understanding of the company's market should be clear.

Summary

This article has discussed market segmentation variables in terms of what they are and how they are used in the context of business decision-making. Moreover, market segmentation variables are data that reflect unique and specific aspects of a company's existing and/or potential market. These variables are gathered using information acquisition techniques, Following this, the information is processed through analysis designed to answer and address a businesses key objectives and concerns. Once the information is analyzed and presented, the company may then have an increased probability of making more sound financial, operational marketing and advertising decisions.

Sources:

1. http://www.businessplans.org/Segment.html
2. http://www.netmba.com/marketing/market/segmentation/

Consumer Buying Behavior and Market Segmentation

The relationship between consumer behavior and market segmentation reflects the interaction between a marketing program and consumer psychology. Marketers seek to identify large population groups known as 'market segments', and then understand consumer behavior within these market segments  in order to develop a marketing campaign.

Some models of consumer behavior such as the 'Fishbein model' tend to focus on measurement of pre-cursors to consumer behavior.(1) This is effective to an extent, however, consumer behavior itself is not immutable and unchangeable, and can be influenced by marketing such as with product placement.(4) Moreover, not only can consumer behavior change, but so too can marketing itself implying a possible relationship between marketing and consumer behavior in the determination of market segments. 

Consumer behavior

To better understand consumer behavior and market segmentation reflect on the two words 'consumer' and 'behavior' separately; a consumer is one that consumers products or services and behavior is how a person makes decisions and conducts oneself in various situations. Factors that influence behavior and by extension, consumer behavior are listed below:

• Belief
• Socialization
• Need(s)
• Ability
• Requirement(s)

Consumer behavior is how a person makes decisions and conducts oneself in relation to consumption of products and services. This itself is a segmentation of behavioral analysis and behavior itself spans many an activity and reflects multiple perspectives that often influence other aspects of behavior.

Market segmentation

Market segmentation is the division of a large group of consumers using specific demographic attributes. Market segmentation attempts to segment markets in such a way that consumer preferences and decisions can be better understood and identified. This assists marketers in knowing 1) who is more likely to buy a certain product or service, 2) what conditions are needed for that buying behavior and 3) what the best way to market a product or service is. Below are some different ways to segment a market:

• Age
• Income
• Gender
• Ethnicity
• Religion

In actuality a market can be segmented by consumer behavior hence the relationship between consumer behavior and market segmentation. However, if this does not adequately affect decisions that might correlate highly to demographics, then the segmentation may be incomplete or ineffective.

To illustrate the previous point, if a market is segmented by whether or not they use deodorant. Moreover, if the market is only segmented by this, not taking in to account demographic factors such as gender can be disastrous for a company's marketing campaigns as men and woman's body's require different products not just a one size fits all product.

Integration of consumer behavior with segmentation

In integrating consumer behavior with segmentation it helps if the marketer has an in depth knowledge of the market because statistics alone do not allow for intuitive reasoning. Intuitive reasoning fills in gaps of market segmentation with discerning probability versus statistically improbable unknowns.

Since consumer behavior and segmentation are dynamic and involve many variables, it is unrealistic to assume a basic segmentation by demographics and core beliefs are going to be the only factors that influence consumer decisions.

This is evident in the 'Fishbein model of consumer behavior' which according to a Government study on Driver attitudes is not only a pre-cursor to consumer behavior but just one of several other influential factors. (1)  This inherently means consumer behavior itself is not always identifiable in relation to a single cause. Some factors that can influence consumer beliefs and subsequent behavior are listed hereafter.

• Attitude
• Intention
• Reasoning
• Mood
• Activity

In light of the complexity of consumer behavior, market segmentation may often end up being a rudimentary or scaled down representation of what is really going on. (2) When marketing has a measurably greater influence on the formation of consumer behavior, then not only would targeting and identification of market segments be more accurate, but marketing programs themselves would have more front end influence on consumer behavior.

Sources:

1. http://bit.ly/cwRX7X (Federal Highway Administration consumer research)
2. http://bit.ly/acrFFa (USC Marshall: Lars Perner: Consumer behavior)
3. http://bit.ly/9Har7j (Library of Congress: Market Segmentation)
4. http://bit.ly/bh2kfA (Wisconsin School of Business: Bill Shepard)

How to create a sales forecast

There are many ways to create a sales forecast, and how a sales forecast is made is not the same as what a sales forecast is. Some sales forecasts are more accurate than others, but the information used in making the sales forecast also contributes to its validity and largely pertains to existing and pre-existing selling activities. Sales forecasts can be made by hand on paper with a calculator, using Microsoft Excel, or with a specialized sales forecast software. Essentially one or more of the following are needed to make a sales forecast:

1. Past sales numbers
2. Sales and marketing budget numbers
3. Intervals at which the numbers are attributable to
4. Other dependent variables ex. Changes in sales force
5. Calculator, or Forecasting software

Determining which sales forecast to use for your business depends on 1) market consistency, 2) historical sales, 3) changes to marketing, project management or product and service line, 4) economic conditions and 5) forecast objective. This article will illustrate how to make different sales forecasts with different tools and methods, and then discuss the importance, relevance, pros and cons of sales forecasts.


Simple sales forecast using moving average

The moving average is a trend line that calculates an average number based on historical data. For example, if sales for the last two years averaged $120K per month and rose an average of 3% per month, a sales forecast that uses both moving average and the percentage rise in the moving average will give a sales prediction based on past sales patterns.

1. List historical sales on a piece of paper or spread sheet
2. Calculate moving average
3. Determine periodic percentage increase in sales
4. Create trend line by applying percentage increase to moving average

Sales forecasts using Microsoft Excel

A few types of sales forecasts can be made using Microsoft Excel. These different forecasts use data differently or adjust data to arrive at more accurate predictions. All forecasts are predictions unless the variables are 100% constant into the future. The sales forecasts below use moving average, dependent variable i.e. causal relationships, and independent variables i.e. sales values. (Microsoft.com)

1. Create three or more columns in a Microsoft Excel Spreadsheet
2. One column for sales and another for time period
3. Click on the chart wizard
4. Highlight data box, proceed through wizard steps
5. Click on Chart tab and add trend line

For more detailed analysis of the above sales forecasting method using Microsoft Excel, regression analysis can be used to calculate accuracy of the sales forecast, and correlations. The following Microsoft website illustrates how to do this and create a forecast in excel with more detail.

Sales forecast using statistical or specialized software

Software that is designed just for creating sales forecasts can provide easier to you applications that save precious time and energy. Additionally, specialized sales forecasting software may offer a variety of forecasting options such as multiple dependent variables, easier data input templates, more dynamic presentation, and greater analytical capacity. Sales forecasting software can be found for free online via sites such as http://www.freedownloadscenter.com

Advantages and disadvantages of sales forecasts

Sales forecasts are useful tools in business management because they help refine the business process and improve the accuracy of business financial planning. Sales forecasts can also be helpful in training teams, illustrating sales performance and planning future sales efforts. Additionally, sales forecasts may assist a business obtain financing for new projects or demonstrate the need for sales related changes.

• Reduce excess inventory and storage costs

• Allow management to gauge effectiveness of sales force

• Improve strategic planning and product testing 

• Assist sales force assess their efforts and market

• Creates records for budget considerations and analysis

Sales forecasts are only as good as the variables and factors put into the equation, software or calculation. Some forecasts may be mere estimates or ball park figures of what sales might be like given non measured past patterns. Other forecasts may fail to take into account significant changes in sales staff, budgets or product line(s). Thus, knowing the business in detail can help improve the accuracy of a sales forecast.

• May not account for changes in economic conditions

• Requires business conditions to remain constant

• Does not necessarily incorporate future projects

• Numbers affected from

In summary, sales forecasts are made relatively easily but do require a record of past sales and business variables to more accurately create a forecast using a moving average trend line. Sales forecasts can compare multiple variables on a graph, in addition to being displayed on data tables. The forecast accuracy can be measured with statistical analysis and multiple methods of creating sales forecasts exist including by hand, Microsoft Excel or specialized sales forecasting software downloads. Sales forecasts are generally not 100% accurate but do assist a sales team, business management and business ownership plan for and project future business situations and revenue which helps in inventory control, assessing human resources, budget and strategic decisions.

A guide to product branding

Product branding turns a common product into a unique and exciting buying opportunity. It builds on a number of factors important to consumers such as image, utility, value, quality and service. For a company to properly brand its product it is prudent to be prepared for a merciless market that's whims can change at the drop of a hat. Fortunately, there are proven techniques and marketing know how in the area of product branding.

Product branding techniques

Branding a product can be extensive, but for purposes of brevity a few key principles are vital to the effective implementation and outcome of any product being branded well. Some of those methods are as follows:

• Customer affinity

Customer affinity is the type of relationship a consumer has with a product. For example, person A prefers Apple Ipods because they just feel right, are reliable, and they have the right features in comparison to MP3 players. This entails a confidence of the consumer, not only in the product but with the company.

• Product differentiation

It's an old principle, but time tested when a marketing professor or guru says, "differentiate your product". This is so because stand out products stay in the memory for a reason. The ideal product differentiation is not only distinctive, but also enhanced in some way.

• Brand equity

Brand equity is the sum of all branding. A product with high affinity but low differentiation has a more average branding in total. The key in branding is to optimize all the branding techniques for as few advertising and research dollars as possible.

The branding process

If branding is done well, and the market likes what it perceives in a brand, it can lead to increased sales, greater corporate and product recognition in addition to serving as a platform to initiate new brands. Once a company and its products are branded it is difficult to move away from that image. Consequently, a bad branding or unsuccessful branding can cost a lot in failed advertising and lost revenue. A problem with branding is knowing how the market will respond to a brand as it is not an exact science. This may involve significant market research, and significant marketing tactical and strategic know how.

Techniques and resources available to business owners:

The field of marketing is diverse and has a wide a scope and depth as can be imagined and created. In the case of branding a few approaches and resources can serve a company well in the branding process. Add-on selling, consumer behavioral analysis and brand image can assist a marketer when taken proper advantage of. To utilize product branding methodologies, a marketer may first study the goals his or her company wants to achieve, then build the brand in line with those goals and the branding methods. Professionals in the field, marketing text books, online gurus and articles, and branding intuition are all resources a marketer might consider before, during and after engaging a product branding project.

How niche marketing can benefit your business

Niche marketing is a form of business marketing that focuses promotion of product(s) or service(s) on a specific target market. Since it 'targets' a specific portion of a population demographic niche marketing is an arguably more effective way of generating revenue than mass marketing. This is so as the products or services may be more likely to be purchased by the target market because in a sense the products or services are customized for them.

Niche marketing using Earth friendly branding

Source: 'Ecogirls'; C.C. By-S.A. 3.0

The reason niche marketing is used is because it is a cost effective form of advertising. Rather than spending endless amounts of money to drag a marketing dragnet across a sea of people it is considered beneficial to identify that group or those groups of people who are most likely to use a certain type of product or service. After this group is identified a niche marketing campaign can begin.

Defining niche marketing

To illustrate what niche marketing is think of a specific type of product like writing services. People who like to read a lot are probably more likely to enjoy writing than those who prefer talking a lot. Markets can be divided further through complementary products. For example, if someone is already subscribing to a writing magazine, they then become a more likely candidate for a writing website than someone who doesn't subscribe to the magazine. At least that's how some marketing logic works. This group of people subscribing to the writing magazine then become a potential niche demographic for additional writing services, and marketing of those services is then considered 'targeted'.

Benefits of niche marketing

The benefits of niche marketing including a more researched study of who is likely to purchase a product in addition to potential advertising savings and increased sales per advertising dollar. So long as the research costs don't outweigh the decrease in advertising dollars the decision to establish a niche market is well founded. Acquiring a niche market involves more than just finding magazine subscription lists however.

A niche market is also found through other means such as website visits, personality type, income demographic, religion, socio-economic status and culture. There are many ways to identify who is going to buy what and this is assisted by the use of statistical tools such as cluster plots, and mean regression analysis. When various groups of people demonstrably fall in to certain groups, this is illustrated through statistical charting and graphing. This research is then used in obtaining marketing financing from finance executives. Additionally, when the results of primary research such as surveys and focus groups leads to probable success of a nice marketing campaign such financing is further justified.

• Potentially increased sales per dollar of advertising
• Higher corporate profit
• Better researched consumer profile
• Product or service viability and usefulness defined in terms of consumer
• Increase marketing efficiency

Summary

Niche marketing is thus a form of marketing that matches a certain brand with a person or group of people. While this is ideally intended to lower advertising costs and increases profit from revenue and the sales per advertising dollar ratio. This beneficial affect of niche marketing may not always happen as the 'market' is composed of human variables and is thus an inherently adverse enterprise. Nevertheless, in addition to enhanced demographic identification which stabilizes market forecasting are ideas like brand equity that are used in collaboration with the targeted marketing. This brand equity can also improve the perceived value of the product or service to a client and theoretically increases the likely-hood of product or service patronage.

Source: http://www.businessdictionary.com/definition/niche-marketing.html

Principles of marketing

There are many types and styles of marketing so the first thing one might consider in reviewing principles of marketing are the 4 P's of Marketing. Price, Place, Product, and Promotion. These are marketing pre-conditions that determine how marketing is done as a boat generally is not marketed the same way(s) as a candy bar. From this point several other important principles can follow. These principles can be divided into two categories internal and external product/service benefits and consumer awareness.

 The Four Ps of Marketing

 

Source: 'Grochim'; GFDL, CC By S.A. 3.0

  
Internal and external product/service benefits

By internal and external, we are talking about benefits to the business or person providing the product or service and the recipient of said product/service. Two important marketing principles that pertain to these locus' of benefit include 1) Customer lifetime value and 2) Brand Equity.

• Customer life-time value is the past, present and future value of existing and potential clients via extension of the idea that a present customer's value also includes future cash flow from that customer. The reason Customer lifetime value is important is because it represents a qualitative and quantitative estimate as to how much an individual client is worth in relation to a business. What's more, it reinforces the notion customers are for life and not just a one time purchase.

• Brand equity is also important as this is often what a consumer uses to value a product and/or service in their mind. A company's brand equity consists of the potential use, benefit and satisfaction gained by a client after purchasing a product and/or service. For example, how is a product different and better from a similar product (product differentiation), how good is the quality in relation to the price, how convenient is the product or service. The better a perceived brand equity is, the more likely a client is going to want what you have to offer.

Neither Customer lifetime value or brand equity are worth much if the product or service isn't actually marketed. This is why research and advertising budgets are so important to a company's success. A few of the key principles of getting your business noticed are target marketing, primary Research, secondary research and persuasion. These are also part of the marketing process model.

Source: 'Grochim'; CC By S.A.-3.0

Secondary research and persuasion

• Targeted marketing is the localization of marketing efforts to specific groups of people who are believed to be more likely to purchase and/or respond favorably to a company's marketing efforts.

• Primary Research is what assists a company in targeting a market accurately. While not all marketing is based on this type of research it is important as it provides first hand evidence of patterns in consumer behavior and preferences. Primary research is direct research with a population sample via surveys, interviews, and/or product testing. The data gathered from this type of research is later analyzed both qualitatively and quantitatively and then decision are made pertaining to an advertising campaign, product release or continuation.

• Secondary Research is anything derived from 2nd party's such as prior research studies, sales and demographic information, magazine subscription lists and previous consumer behavior polls or studies. This type of research is also relevant and can be combined with primary research for potentially more effective conclusions.

• Persuasion can be described as the effectiveness of an advertising message, campaign, or promotion in selling a business and its services. There are many techniques used in delivering advertising messages and these techniques are used through various mediums of communication such as radio, television, billboards etc and also through corporate policies and enacting of those policies via customer service, product differentiation, and brand equity. Ideally, the more consistently a business conveys their well planned messages to existing and potential clients the greater the chance of persuading them a specific product or service is really intended for them and not someone else.

There are many ways to perceive marketing and consequently many more marketing principles to support those methods. Marketing is a competitive and ever evolving practice as the market is very discerning and quickly learns a marketing technique. What's more holding the interest of a market in a very sensational marketing environment takes innovation, consistency, effectiveness and presentation. Marketing is an art that's sum of parts is not complete without hands on practice and experience. While the principles of marketing have value, it is the productive application of those principles that yield results.

Source(s):

1. http://www.netmba.com/marketing/mix/
2. http://tinyurl.com/4dtg5lk (Search CRM)
3. http://en.wikipedia.org/wiki/Brand_equity
4. http://www.allbusiness.com/marketing/market-research/1310-1.html

Why Quality is More Important than Quantity When Writing Web Content

Quality web content endures by remaining a useful source of information, whereas quantity obscures by manipulating short-term market trends for a quick gain. In other words, when writing web content, the quantity of that content might perform well with high Search Engine Optimization (SEO) and no quality. However, after time, competing websites that utilize just quality will garner stronger support through viral rather than optimized traffic growth. This does not mean marketing is not needed though.

• Quality Web-writing addresses visitor motives

In Volume 11, number 3 of the Journal of Electronic Publication, Gary Hanson and Paul Haridakis indicate the ability of a website to meet the needs and motives of its visitors is a key factor in the importance of the content on the website. The example used is the dissemination of media via You Tube rather than traditional sources of media which doesn't beg the question of why quality is partially defined by how well that particular website is suited for its most likely audience.

• Achieving global value through web content

To further illustrate the above principle with an example, consider the website http://www.conduit.com. In September of 2010, this website had an Alexa traffic rank of 71 within the United States and 33 globally. This website is a software application provider that is hugely successful but with only 140 employees, is much smaller in size than sites such as Yahoo with over 13,000 employees. Thus size or quantity, does not appear to be as important as quality of 'written' software because it doesn't provide an in demand service, and evidently the apps at Conduit Ltd. are good enough to drive a huge amount of traffic to its website.

• Search engines assess quality

Another reason why quality is more important than quantity is that web content with low quality and high quantity will sooner or later be weeded out by search engines and web searchers as less useful, full of bugs. or ill equipped to handle web visitors. For example, a website may have the best marketing plan on the planet, but without a product or service at the website to back it up, that marketing plan has gone to waste.

• Repeat visitors value web content

The principle that quality is more important than quantity when writing web content can also be demonstrated using side by side contrasts of websites within the news publishing industry. There's a reason why the New York Times is ranked more than three times higher than the Washington Post, and that reason is at least partially due to quality. Web visitors might simply appreciate the writing more or the website may better facilitate web visitors needs better.

In summary, quality is more important than quantity when writing website content because it provides something of value, and is favored by its target market. Quantity alone does neither of at little of these things for a websites clients but rather the website itself. Quantity driver web content runs the risk of incurring website traffic erosion and can drive the need for new and creative ways to drive traffic to the content rather than allowing the content to do that itself.

Sources:
1. http://bit.ly/6gz0he      (Alexa)
2. http://bit.ly/bPQRlY     (Journal of Electronic Publishing)
3. http://yhoo.it/9cWZn9 (Yahoo Finance)

Cheap Ways to Improve The Value of Flea Market Items

The cheap ways to improve the value of your flea market items are to use the methods that make them not seem like flea market items at all. For example, an old beat up doll house could be a priceless bargain with some new wallpaper and carpeting. A second step then makes use of marketing techniques that improve your chances of selling the item. Even if flea market items have been inexpensively increased in value, someone still has to buy it. The following tips provide cheap ways that not only help increase the value and salability of flea market items, but that also help with marketing the product.

• Transform the items

Flea market items can be transformed with the magic of sales which is cheap, it can even be free when you do it right. Selling item involves highlighting its value to a potential buyer which means you might have to speak to them, but that's free. Here's an example, “That's no junk you're looking at Sir, that's a very unique piece of history your looking at. See how it shines and has been restored with care, that increases its value, and if you like it enough you can even have it at a discount.” That's just the first line.

There are also other cheap ways to increase the value of flea market items. For example, restoration of a doll house; perhaps a screw is missing, or the paint has worn off, or a doll is missing a shoe. Screws are fairly inexpensive and the paint doesn't necessarily have to be re-done if it can be cleaned . In some cases even stripping the paint might make the doll house more appealing. Unless the doll's shoes are exceedingly important to the house, those can be replaced and maybe even a new dress would spruce up the doll house.

• Make it a deal

The next way to cheaply improve the value of flea market items is to make it a deal. That can be done by reducing the price of the newly valued and restored flea market item. So perhaps after restoring the doll house, the value increased by $5 and now costs $15, but that's a little to pricey for the buyers. So to make it a deal, keep the price on the tag and reduce it when someone shows interest, but not before. By making the doll house a deal, the chance of selling it is not only improved but develops an appreciation from the potential buyer.

• Identify potential buyers

After a way has been designed to make the flea market item a deal, a market either needs to be created or expanded. That means people who might be interested in the doll house should be found and told about this wonderfully restored quasi-antique piece of 20th century culture. If they're not interested in dolls or doll houses, they're probably the wrong people to be telling, so naturally finding places where people like that sort of thing, and then informing them, might be a good idea.

• Create a need

Maybe the doll house isn't that big of a deal. That's fine, is it unique? If not make it unique then it's like no other which increases its value and potential interest in the item. A collection of doll houses might not be complete without this particular one, or it would perfectly complement another doll house or set of dolls. Maybe someones daughter needs a gift or a surprise is in order. In other words, there are reasons to buy things, but unless they are revealed they might not be known. Revealing these needs is a cheap way to increase the marketability, and hence the value of a flea market item.

• Increase demand

A last cheap way to improve the value of a flea market item is to increase its demand. In economics, the principle that higher demand translates to higher cost is a widely held belief. To increase the demand do a little research before restoration to identify the most wanted style, color or features. Doll house stores, books, auction bids and local clubs may all provide insight into what buyers are looking for and what they are willing to pay. When the in demand features are identified and worked into the doll houses' redesign and marketing, the probability of selling the newly valued doll house improves turning flea market goods to boutique treasures.