Showing posts with label Marketing Strategies. Show all posts
Showing posts with label Marketing Strategies. Show all posts
Wednesday, August 1, 2012
How Markus Frind Build an Online Empire in PlentyofFish.com
Markus Frind started the renowned free online dating site PlentyofFish.com. In 2006, he earned an estimated $10,000 a day from Adsense. Currently, PlentyofFish is reported to have 45 million visitors and 1.1 billion pageviews monthly earning Frind approximately $5 to 10 million annually.
So how did Markus Frind achieve this seemingly impossible feat? For would-be online entrepreneurs, Markus delineates 17 doable steps that could help spur business. These are:
1. Timing is Everything – Knowing what the market needs and addressing it promptly is crucial. Growth of an online business is often spurred by being the first-mover. For instance, Lavalife used to be the only dating site in Canada and this contributes to the fast increase in membership sign-ups.
2. The Power of ‘Free’ Business Model – free sites always attract a lot of attention. When PlentyofFish came online, it was the only free dating site which was instrumental for its massive success later.
3. Forming a team is Not Necessary – When starting an online business, it is not necessary to hire employees immediately. This is because almost all work, except for few technical issues, can be automated.
4. Offline Marketing is Not Necessary - Offline promo is only good when there is a huge customer base. However, if you are just starting and want to attract more members to your site, offline promo is not needed.
5. Success is Not Based on One Thing – There is no single, surefire formula for success. Success happens due to an amalgamation of factors. One cannot just copy a popular website like Google and be successful. Success is due to having the right idea that address people’s needs at the right time.
6. Uptime is Equally Important to Innovation – Redesigning the site is good. Having a consistent uptime however is just as important as the skill in redesigning a website because as the site grows, more and more users will be coming to it and it is necessary that it stays up so as not to drive potential users away.
7. Make Unique Sites - create sites that no one else has made. Sites may have low number of visitors but if they have high EPC or earnings per click, they will make more money
8. Good Work Ethics – whenever you find yourself running out of ideas just force yourself to type words. Later, working would become a habit.
9. Function over Form – the value of the site and its functions are more important than its design. Site should be useful to the reader. Ads should not be too obvious. Improvements should be introduced.
10. Think of ways to monetize your site before building it. See the potential ways to earn money first like Adsense, affiliate marketing and others.
11. Don’t be discourage. If you drive traffic to your site, it can have good earning potentials for you. Just persevere even if you are only earning a few cents per month. As the site grows, so do its pageviews.
12. Learn what is necessary. Pick out new things even from your competitors and do things better than them.
13. Monetize Your Site. There are other money-making ventures other than adsense. When you generate traffic, it is good to look at other options in order to earn higher.
14. Know the Limits of Your Business. Do not try to adopt business models that do not fit into your current one. For instance, turning your site into a paid one instead of being a free dating site. This could confuse users. Also, aiming to expand to an already saturated market.
15. Always have a goal. A goal will inspire you to work harder. This will also deter you from being complacent.
16. Success does not fall on your lap. Planning alone will not make a business a success. There is no substitute for hard work.
17. Costs vs Profits – knowing how much you need to spend will enable you to determine how much sales you need in order for the business to become profitable. For sites with at least 100,000 unique visitors per day, operational costs in the form of hardware and software could would be necessary. If the costs run to 2-3 cents per unique visitor then advertising is enough. If you incur a cost of 10 cents per unique visitor then selling a product or service would be a good idea.
Basic Marketing Processes in an Entrepreneurship: Rewards of an Entrepreneurship
According to Kyle (2006) the basic marketing processes in an entrepreneurship are:
1). Analyzing the customers and the business environment in order to
2) identify key opportunities to better and more profitably meet customer needs,
3) figuring out how to act on those opportunities, and then
4) implementing your plan.
Analyzing customers and business environment means identifying your target market, knowing their buying patterns and other pertinent information and also knowing the competition since they form part of business environment.
Identify key opportunities to meet customer needs. Once the market is identified, know the needs that the company can cater to.
Figure out how to act on opportunities is finding ways to explore and exploit these opportunities and translate them into profits.
Implementing the plan means carrying out or executing the plan in the course of doing business.
Rewards of an Entrepreneurship
Running a business is truly rewarding and interesting career. For one, you learn so many things in running and managing a business. At the start of a business endeavor, it is common to see the owner involve in all aspects of business operation from marketing to accounting. The knowledge one gains from this experience is truly invaluable.
Running a business also helps a person to acquire or enhance good qualities such as hard work, ability to deal with people, resourcefulness, leadership, patience and many other desirable traits.
Business will also expose one to several people and business organizations. In the course of running a business, social interaction is always a necessity. Meeting people from all walks of life and becoming acquainted with various corporations are but a few of the privileges one enjoys as a businessman.
Being a business person truly makes one well-rounded. It will expose you to a number of challenges and opportunities. Everyday you get to handle different situations. There is no dull moment in business.
1). Analyzing the customers and the business environment in order to
2) identify key opportunities to better and more profitably meet customer needs,
3) figuring out how to act on those opportunities, and then
4) implementing your plan.
Analyzing customers and business environment means identifying your target market, knowing their buying patterns and other pertinent information and also knowing the competition since they form part of business environment.
Identify key opportunities to meet customer needs. Once the market is identified, know the needs that the company can cater to.
Figure out how to act on opportunities is finding ways to explore and exploit these opportunities and translate them into profits.
Implementing the plan means carrying out or executing the plan in the course of doing business.
Rewards of an Entrepreneurship
Running a business is truly rewarding and interesting career. For one, you learn so many things in running and managing a business. At the start of a business endeavor, it is common to see the owner involve in all aspects of business operation from marketing to accounting. The knowledge one gains from this experience is truly invaluable.
Running a business also helps a person to acquire or enhance good qualities such as hard work, ability to deal with people, resourcefulness, leadership, patience and many other desirable traits.
Business will also expose one to several people and business organizations. In the course of running a business, social interaction is always a necessity. Meeting people from all walks of life and becoming acquainted with various corporations are but a few of the privileges one enjoys as a businessman.
Being a business person truly makes one well-rounded. It will expose you to a number of challenges and opportunities. Everyday you get to handle different situations. There is no dull moment in business.
Tuesday, July 31, 2012
How New Balance Can Increase Market Share: Business Strategies of New Balance
New Balance holds only 3-5% of the market share of the shoe industry. Nike leads the pack with 30.4%. Issues New Balance Need to Address
1. Outsourcing issues. With their major competitors outsourcing to other countries for production, New Balance needs to look into this issue and examine how it can incorporate this in their business strategy. Outsourcing need not be the way to go but they could, for instance, put up New Balance manufacturing plants in Asia which are intended mainly to cater exclusively to Asian customers.
2. "Endorsed By No One" philosophy is another issue which they could look into. Having no identifiable single representative of the product could be a disadvantage because Nike's popularity hinges on its being identified with the best athletes in the world.
3. Their share of the market. A mere 3-5% market share compared to Nike's 30.4% does not appear so impressive. They need to look into ways to increase the number of their customers.
How New Balance Could Increase Market Share
* Multinational customers could potentially increase their market share. In 1995, Nike's international operations accounted for 36.06 of its total sales. New Balance should recognize the fact that the demands from international markets will increase in future.
* The changing US demographics could also be a factor as there is a rising number of Hispanics, Asians, and African Americans. These groups have different shoe preferences that New Balance should be able to satisfy. New Balance should determine the next generation of loyal customers and provide for their needs.
* New Balance marketing efforts seemed focused on sports footwear or athletic lines. There are other venues that can be tapped for increased sales such as casual footwear, women's shoes and children's footwear.
* New Balance should improve their ways of conducting business online. The online market is huge. New Balance could tap into this huge source of customers. They must make their more user-friendly to attract more visitors. More visitors often translate to more sales. Their website should also be more interactive and allow customers to have their say with regards to the shoes, designs and other matters.
* New Balance should also conduct surveys on their customers to know what they really want. Trends and styles change often.
* New Balance could introduce a Loyal Customer Program just like their Nike counterpart. In this program, points are added to an account after a purchase. The points would vary depending on the amount of the purchase. New Balance allows customers to buy products through the points the customers are able to accumulate.
New Balance may not hold the lion share of the shoe industry but it certainly has a lot of potentials. Being one of the more established companies in the footwear industry, New Balance certainly offers a lot of value to the customers.
1. Outsourcing issues. With their major competitors outsourcing to other countries for production, New Balance needs to look into this issue and examine how it can incorporate this in their business strategy. Outsourcing need not be the way to go but they could, for instance, put up New Balance manufacturing plants in Asia which are intended mainly to cater exclusively to Asian customers.
2. "Endorsed By No One" philosophy is another issue which they could look into. Having no identifiable single representative of the product could be a disadvantage because Nike's popularity hinges on its being identified with the best athletes in the world.
3. Their share of the market. A mere 3-5% market share compared to Nike's 30.4% does not appear so impressive. They need to look into ways to increase the number of their customers.
How New Balance Could Increase Market Share
* Multinational customers could potentially increase their market share. In 1995, Nike's international operations accounted for 36.06 of its total sales. New Balance should recognize the fact that the demands from international markets will increase in future.
* The changing US demographics could also be a factor as there is a rising number of Hispanics, Asians, and African Americans. These groups have different shoe preferences that New Balance should be able to satisfy. New Balance should determine the next generation of loyal customers and provide for their needs.
* New Balance marketing efforts seemed focused on sports footwear or athletic lines. There are other venues that can be tapped for increased sales such as casual footwear, women's shoes and children's footwear.
* New Balance should improve their ways of conducting business online. The online market is huge. New Balance could tap into this huge source of customers. They must make their more user-friendly to attract more visitors. More visitors often translate to more sales. Their website should also be more interactive and allow customers to have their say with regards to the shoes, designs and other matters.
* New Balance should also conduct surveys on their customers to know what they really want. Trends and styles change often.
* New Balance could introduce a Loyal Customer Program just like their Nike counterpart. In this program, points are added to an account after a purchase. The points would vary depending on the amount of the purchase. New Balance allows customers to buy products through the points the customers are able to accumulate.
New Balance may not hold the lion share of the shoe industry but it certainly has a lot of potentials. Being one of the more established companies in the footwear industry, New Balance certainly offers a lot of value to the customers.
Strategies for Retail Management: The Importance of Store Layout and Design
A retail store requires visible help to tantalize shoppers or customers. This falls under "visual merchandising" which is the art of attracting patrons using visual signs. This is essential to help the retailer generate sales.
Visual Merchandising began at the turn of the century when department stores in the past used theatrical set design and lighting to create eye-catching displays. Making the store attractive is an important strategy to keep shoppers coming back.
There are two essential elements in a good store plan : store design and store layout. Store design focuses on the atmosphere of the store, its image, interior and exterior design factors. Store layout includes the internal arrangements of each department, selling and sales support allocation, and the evaluation of space productivity.
Merchandise Display
Retailers believe that if one "displays it, they will buy." Experienced retailers know for certain that women, from all ages and income levels, refer to in-store displays, first and foremost to get fashion ideas. Display of merchandise is important because the design could serve as a come-on for shoppers. The more merchandise customers see, the more they will be tempted to buy.
The design of the store should attract the customers to investigate all the departments or at least to see what the store offers. This way they will return another time. This is accomplished by providing strategic location of signs, special values, escalators, stairs, dressing rooms and certain merchandise.
Many supermarkets place convenience items such as bread and milk at the far end part of the store because these items are necessities and customers would be forced to explore the entire store as they search for these products.
When it comes to clothing, customers prefer to be up close and personal with clothes. Nothing can compete with the feeling the texture of the fabric, trying on the skirt or pants, sweater or blouse in influencing consumers' decision to buy. Even big-budgeted fashion show or advertisement cannot convince customers as much as the personal touch.
Lifestyle MonitorTM says that more than 60 percent of all women said that they get their clothing ideas from store displays.
Department Locations
Location is very important. It should be designed in such a way that heavy traffic would be sent to the most profitable items. For instance, high-markup items such as expensive jewelries or cosmetics and impulse items such as lipstick or eyebrows should be very visible.
Related lines should be located close to each other. For instance, ties should be put right next to dress shirts, printers should be placed next to computers, vases next to flowers, and so many others.
Related departments should also be located next to each other. Fashion departments complement each other. Cosmetics, accessories and jewelry often go well together. Cookbooks and gourmet utensils stimulate interest in one another.
Departments and merchandise categories should be coordinated as much as possible for customer convenience and cross-selling. Give the most important lines the best locations in your store. Play the winners. Anything that is moving fast should be exploited in every way.
Addressing Shoplifting
The best way for department stores to discourage theft in a store is by preventing or taking away opportunities to steal. A well-designed store layout may not totally eliminate shoplifting but will help lessen it. Keep small, expensive items under lock and key.
Convex mirrors should be used where blind spots cannot be eliminated. Video monitors should also be installed. By keeping everything wide open, salespeople can observe everyone in the store.
Use of Fixture
Changes in layout and merchandise displays are facilitated by using fixtures that are movable and adjustable such as cabinets, shelving, lighting and other furnishings. The visual concepts are essential in creating a store environment that evokes feelings of spaciousness, aesthetic pleasures, a sense of wellness and a residential feeling.
Visual Merchandising began at the turn of the century when department stores in the past used theatrical set design and lighting to create eye-catching displays. Making the store attractive is an important strategy to keep shoppers coming back.
There are two essential elements in a good store plan : store design and store layout. Store design focuses on the atmosphere of the store, its image, interior and exterior design factors. Store layout includes the internal arrangements of each department, selling and sales support allocation, and the evaluation of space productivity.
Merchandise Display
Retailers believe that if one "displays it, they will buy." Experienced retailers know for certain that women, from all ages and income levels, refer to in-store displays, first and foremost to get fashion ideas. Display of merchandise is important because the design could serve as a come-on for shoppers. The more merchandise customers see, the more they will be tempted to buy.
The design of the store should attract the customers to investigate all the departments or at least to see what the store offers. This way they will return another time. This is accomplished by providing strategic location of signs, special values, escalators, stairs, dressing rooms and certain merchandise.
Many supermarkets place convenience items such as bread and milk at the far end part of the store because these items are necessities and customers would be forced to explore the entire store as they search for these products.
When it comes to clothing, customers prefer to be up close and personal with clothes. Nothing can compete with the feeling the texture of the fabric, trying on the skirt or pants, sweater or blouse in influencing consumers' decision to buy. Even big-budgeted fashion show or advertisement cannot convince customers as much as the personal touch.
Lifestyle MonitorTM says that more than 60 percent of all women said that they get their clothing ideas from store displays.
Department Locations
Location is very important. It should be designed in such a way that heavy traffic would be sent to the most profitable items. For instance, high-markup items such as expensive jewelries or cosmetics and impulse items such as lipstick or eyebrows should be very visible.
Related lines should be located close to each other. For instance, ties should be put right next to dress shirts, printers should be placed next to computers, vases next to flowers, and so many others.
Related departments should also be located next to each other. Fashion departments complement each other. Cosmetics, accessories and jewelry often go well together. Cookbooks and gourmet utensils stimulate interest in one another.
Departments and merchandise categories should be coordinated as much as possible for customer convenience and cross-selling. Give the most important lines the best locations in your store. Play the winners. Anything that is moving fast should be exploited in every way.
Addressing Shoplifting
The best way for department stores to discourage theft in a store is by preventing or taking away opportunities to steal. A well-designed store layout may not totally eliminate shoplifting but will help lessen it. Keep small, expensive items under lock and key.
Convex mirrors should be used where blind spots cannot be eliminated. Video monitors should also be installed. By keeping everything wide open, salespeople can observe everyone in the store.
Use of Fixture
Changes in layout and merchandise displays are facilitated by using fixtures that are movable and adjustable such as cabinets, shelving, lighting and other furnishings. The visual concepts are essential in creating a store environment that evokes feelings of spaciousness, aesthetic pleasures, a sense of wellness and a residential feeling.
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