Freebee, not discount, is this year's mantra for Diwali sale. New lesson in marketing...........
NEW DELHI: Planning to buy a plasma TV and a designer watch this Diwali? Then how about getting both the things at the cost of one! With the festive season in full swing, consumer durable companies are offering expensive freebies with main products, instead of the traditional cash discounts, to push sales. The reason: Inability to lower prices any further after successive discounts. "We are creating an excitement through new products this Diwali season," said Ruchika Batra, general manager for Southwest Asia with white goods major Samsung that is not relying on discounts to push sales this year. "We have enhanced main products and along with that we give away some other value-added products. So the total value of the goods should hold more value for our customers than the discounts," Batra said. Akai, another consumer durables major, also said prices have fallen so much that it was no longer possible to give more discounts. The company felt the buying power of Indian consumers had grown substantially over the past few years, needing a different strategy. "Prices are already pretty low now; cutting it further will affect profitability and the overall image of firms," said Pranay Dhabhai, managing director of Akai India. "Exchange offers and offers on multiple product purchases work better in such circumstances." Manish Sharma, the director of marketing at Panasonic India, shared a similar view. "The market in India today has become highly competitive. It has clearly moved ahead of price discounts. Such schemes do not offer much of a value -addition proposition." "Gifts last long; discounts don't." What has also triggered this shift away from price discounts is the growing purchasing power of the Indian consumer and the fact that freebies and gifts are a cheaper option than outright cash discounts. If a watch is offered free with the purchase of a TV, refrigerator or a washing machine, for the consumer it is the retail price -- says Rs 4,200 or so -- that actually matters. For the consumer goods major, the actual cost of the freebie is far less.
Ratan Tata shortlisted for Fortune 'Business Person of the Year' honour
BOSTON: Tata Group Chairman Ratan Tata is among eight business leaders from across the world shortlisted by the prestigious Fortune magazine for its 'Business Person of the Year', an honour that will go to the leader who made the "biggest mark" in business in 2010. Fortune magazine will name its 'Business Person of the Year' on November 18. The other business honchos in the fray are billionaire Warren Buffett, Apple Chief Steve Jobs, Ford Motor CEO Alan Mulally, Google CEO Eric Schmidt, DuPont CEO Ellen Kullman, McDonald's CEO James Skinner and Netflix CEO Reed Hastings. On Tata, Fortune said his group's Tata Motors unit restarted orders for the "ultra cheap, high-demand Nano car" and "at the high end, has reinvigorated Jaguar." For the title, the publication started with 32 business leaders who had been "seeded and matched-up by the editors of Fortune." In the process of finalising the winner, Fortune will talk to analysts, consultants, executives and former executives, "those moving markets and those playing them."
Product Positioning: A Comparison of Perceptual Mapping Techniques Document Information: Title: Author(s): Citation:
Product Positioning: A Comparison of Perceptual Mapping Techniques Chiranjeev S. Kohli, Lance Leuthesser Chiranjeev S. Kohli, Lance Leuthesser, (1993) "Product Positioning: A Comparison of Perceptual Mapping Techniques", Journal of Product & Brand Management, Vol. 2 Iss: 4, pp.10 -
Keywords: Competitive strategy, Marketing management, Marketing strategy, Product positioning DOI: Publisher: Abstract:
10.1108/10610429310047660 (Permanent URL) MCB UP Ltd Product positioning is a crucial component of competitive marketing strategy. Perceptual mapping techniques are frequently used to aid managers in making product positioning decisions. Presents an overview of perceptual mapping, explains the conceptual foundation, and compares three widely used techniques ± factor analysis, discriminant analysis, and multidimensional scaling. Highlights differences in these analytical techniques, with implications for marketing managers.
How procurement managers view low cost countries and geographies: A perceptual mapping approach Document Information: Title: Author(s):
How procurement managers view low cost countries and geographies: A perceptual mapping approach Joseph R. Carter, (W.P. Carey School of Business, Arizona State University, Tempe, Arizona, USA), Arnold Maltz, (W.P. Carey School of Business, Arizona State University, Tempe, Arizona, USA), Tingting Yan, (W.P. Carey School of Business, Arizona State University, Tempe, Arizona, USA), Elliot Maltz, (Atkinson School of Business, Williamette University, Salem, Oregon, USA) Joseph R. Carter, Arnold Maltz, Tingting Yan, Elliot Maltz, (2008) "How procurement managers view low cost countries and geographies: A perceptual mapping approach", International Journal of Physical Distribution & Logistics Management, Vol. 38 Iss: 3, pp.224 - 243 International business, Sourcing, Supplier evaluation
Article type: Research paper DOI: Publisher: Abstract:
10.1108/09600030810866995 (Permanent URL) Emerald Group Publishing Limited Purpose ± There is good evidence that the shift in gl obal sourcing is toward so-called ³low cost country suppliers.´ Yet conditions in these countries are often not well -known. At the same time, best practices in integrated supply dictate a multi faceted decision, rather than basing supplier location on a single attribute say, labor cost alone. With these issues in
mind, a research project was formulated with two primary objectives. First, the authors wanted to compile the knowledge and perceptions of purchasing managers regarding low cost regions and their capabilities and to reflect the multiple factors involved in current sourcing strategies and supplier selection decisions in these low cost geographies. Second, the authors wanted to compare managers' subjective perceptions with objective data regarding att ributes of sourcing locations to identify the relationship between perceptions and reality. This paper aims to explore the issues. Design/methodology/approach ± The authors surveyed over 100 sourcing professionals on their perceptions of various low cost sourcing alternatives. Perceptual mapping techniques were used to combine the rankings on some 12 different attributes to visualize how the various attributes relate to each other and how the low cost regions compare when rated against sourcing managers' ideal perceptions. Findings ± The research results show that procurement managers select regions for low cost sourcing based on both specific measures and individual and/or group perceptions of the region, whether these perceptions are correct or not. This paper probes these perceptions. Also the paper compares these subjective perceptions with objective data to show that cultural stereotypes may bias managers' perception of location-specific characteristics. The paper closes with implications for procurement managers and opportunities for further research. Practical implications ± The authors have demonstrated that purchasing managers choose sourcing locations using multiple criteria instead of only focusing on cost. But some perceptions are biased by cultural stereotypes and do not reflect reality. This suggests that managers have to be careful when using their subjective judgment in choosing sourcing locations. Originality/value ± The authors believe that visual representations of alternative sourcing options have great potential to improve the efficiency of cross -disciplinary and multi-company teams that are increasingly responsible for global sourcing strategies. Comparing managers' perception with objective data of location attributes shows that man gers' perception may be biased by cultural stereotypes.
Perceptual Mapping: a Tool for Industrial Marketing: a Case study Document Information: Title:
Perceptual Mapping: a Tool for Industrial Marketing: a Case
Steven A. Sinclair, (Professor of Forest Products Marketing at Virginia Polytechnic Institute and State University.), Edward C. Stalling, (Project Manager at Weyerhaeuser Forest Products Company.) Steven A. Sinclair, Edward C. Stalling, (1993) "Perceptual Mapping: a Tool for Industrial Marketing: a Case study", Journal of Business & Industrial Marketing, Vol. 5 Iss: 1, pp.55 - 66
Keywords: Industrial marketing, Marketing strategy, Methodology, Methods, Modelling DOI: Publisher: Abstract:
10.1108/EUM0000000002738 (Permanent URL) MCB UP Ltd Describes the uses and advantages of perceptual mapping, a consumer-based modelling technique having both diagnostic and strategic applications, particularly in determining the thre at posed by substitute products and in developing competitive strategies. Uses a case study approach of analysing companies in traditional manufacturing industries who are attempting to move from basic commodities to faster growing ³value -added´ products. Concludes that perceptual maps are effective in developing new products and product positioning and can be easily used by managers in developing actions.
Mapping service quality in the tourism industry Document Information: Title: Author(s):
Mapping service quality in the tourism industry Eda Atilgan, (Research Assistants at the Faculty of Economics and Adminstrative Sciences, Department of Business Administration, Akdeniz University, Antalya, Turkey.), Serkan Akinci, (Research Assistants at the Faculty of Economics and Adminstrative Sciences, Department of Business Administration, Akdeniz University, Antalya, Turkey.), Safak Aksoy, (Safak Aksoy is Associate Professor of Marketing, at the Faculty of Economics and Adminstrative Sciences, Department of Business Administration, Akdeniz University, Antalya, Turkey.) Eda Atilgan, Serkan Akinci, Safak Aksoy, (2003) "Mapping service quality in the tourism industry", Managing Service Quality, Vol. 13 Iss: 5, pp.412 - 422 Perceptual mapping, Service quality assurance, SERVQUAL, Tourism
Article type: Research paper
DOI: Publisher: Abstract:
10.1108/09604520310495877 (Permanent URL) MCB UP Ltd This study suggests a new approach to the exploratory and evaluative research of service-quality dimensions by employing correspondence analysis (CA). Although several studies have investigated the service quality of service providers using descriptive measures and statistical tests, this study presents a graphical interpretation of SERVQUAL data to aid managerial decision -making in the tourism industry. This paper also examines the expectations and perceptions of two distinct groups by determining the differences between German and Russian tourists¶ evaluations of service -quality dimensions in tour operators. The study concludes that CA can be used effectively in evaluating the service -quality and displaying the differences in the expectations/perceptions of distinct consumer groups. Managerial implications for travel administrators are discussed. Tour operators should consider cultural differences in service-quality evaluations.
The effects of consumer preferences and perceptions of Chinese tea beverages on brand positioning strategies Document Information: Title: Author(s):
The effects of consumer preferences and perceptions of Chinese tea beverages on brand positioning strategies Cheng-Wen Lee, (Department of International Trade, School of Business, Chung Yuan Christian University, Chung Li, Taiwan), Chi-Shun Liao, (School of Business, Chung Yuan Christian University, Chung Li, Taiwan) Cheng-Wen Lee, Chi-Shun Liao, (2009) "The effects of consumer preferences and perceptions of Chinese tea beverages on brand positioning strategies", British Food Journal, Vol. 111 Iss: 1, pp.80 - 96 Brands, Consumer behaviour, Market position, Market strategy, Perceptual mapping, Tea
Article type: Research paper DOI: Publisher: Abstract:
10.1108/00070700910924254 (Permanent URL) Emerald Group Publishing Limited Purpose ± The study aims to discuss how the attributes of Chinese tea beverage brands influence consumers' evaluations of brand positioning and the difference s and competition among brands.
Design/methodology/approach ± A perceptual map, developed using probabilistic discriminant analysis algorithms, depicts the relative position of each brand and illustrates their attractive properties. This statistical technique can enhance managers' ability to identify promising brand positions and enhance the overall brand design process. Findings ± The study finds that Chinese tea beverage brands pursue various goals, such as quenching thirst, attractive advertising, or reliable quality, to develop their positions. Brand positioning implies that consumers remember particular information conveyed by the brand. The study illustrates consumers' brand awareness attributes, potential market demand, and brand competition con ditions. Research limitations/implications ± Brand positioning, when linked with market segmentation, can yield effective guidelines for the design and coordination of a marketing strategy. The scope of this study, however, does not enable elaboration on segmented differences in product positioning. Practical implications ± The study provides a useful source of information for managers, who should introduce brands to the market carefully and deliberately and choose a position that is both appealing and sust ainable over time. Originality/value ± The study provides a unique method to understand the current market structure and determine a target brand and its best competitive position.