Case Study Joggers World

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Table of Contents
TOC o “1-3” h z u HYPERLINK l “_Toc370206564” Executive
Summary PAGEREF _Toc370206564 h 3
HYPERLINK l “_Toc370206565” 1.0. Problem statement PAGEREF
_Toc370206565 h 4
HYPERLINK l “_Toc370206566” 2.0 Situational analysis PAGEREF
_Toc370206566 h 4
HYPERLINK l “_Toc370206567” 2.1 Internal weaknesses and strengths
PAGEREF _Toc370206567 h 4
HYPERLINK l “_Toc370206568” 2.1.1 Demographics PAGEREF
_Toc370206568 h 5
HYPERLINK l “_Toc370206569” 2.1.3 Social PAGEREF _Toc370206569 h
5
HYPERLINK l “_Toc370206570” 2.1.3 Technological PAGEREF
_Toc370206570 h 5
HYPERLINK l “_Toc370206571” 2.1.4 Economic PAGEREF _Toc370206571
h 6
HYPERLINK l “_Toc370206572” 2.1.5 Political/Legal PAGEREF
_Toc370206572 h 6
HYPERLINK l “_Toc370206573” 2.1.5 Culture PAGEREF _Toc370206573 h
6
HYPERLINK l “_Toc370206574” 2.2 External Opportunities and Threats
PAGEREF _Toc370206574 h 6
HYPERLINK l “_Toc370206575” 2.2.1 Company capabilities PAGEREF
_Toc370206575 h 7
HYPERLINK l “_Toc370206576” 2.2.2 Competition PAGEREF
_Toc370206576 h 7
HYPERLINK l “_Toc370206577” 2.2.3 Corporate Partners PAGEREF
_Toc370206577 h 8
HYPERLINK l “_Toc370206578” 3.0 Segmentation Analysis PAGEREF
_Toc370206578 h 8
HYPERLINK l “_Toc370206579” 3.1 Primary targets PAGEREF
_Toc370206579 h 9
HYPERLINK l “_Toc370206580” 3.2 Secondary targets PAGEREF
_Toc370206580 h 9
HYPERLINK l “_Toc370206581” 4.0. Strategic alternatives PAGEREF
_Toc370206581 h 10
HYPERLINK l “_Toc370206582” 5.0 Recommendations PAGEREF
_Toc370206582 h 11
HYPERLINK l “_Toc370206583” 5.1. Starting a company blog PAGEREF
_Toc370206583 h 12
HYPERLINK l “_Toc370206584” 6.0 Implementation PAGEREF
_Toc370206584 h 13
HYPERLINK l “_Toc370206585” 7.0 Conclusion PAGEREF _Toc370206585
h 18
HYPERLINK l “_Toc370206586” Bibliography PAGEREF _Toc370206586 h
19
Executive
This paper presents the case study for Jogger’s World marketing plan.
The company was started in 1995 by Nikki Brown. The nationally ranked
runner started the retail store to offer serious runners with shoes as
well as give them the advice they required. Initially, Nikki made good
returns from the sales. However, as her target customers’ progress in
age, their preference for the type of shoes offered to them initially,
changes. This affects the business considerably since a shift to offer
the changing demand meant neglecting the serious runners. Nikki was
compelled to increase the product assortment but she faced pressures
from other people who demanded delivery of the shoes at reduced prices.
Nevertheless, her competitors offered the same products at low prices
though they were of low quality. The extreme competition affected the
business negatively, and to counter this, Nikki believed the only way to
go is to make molds for customized shoes. This remained impossible due
to lack of training and Nikki was considering training salespeople and
product developers. This would have decreased reliance on knowledge and
skills from other people as well as train her employees on how to
conduct sales. Furthermore, the move towards online marketing through
development of blogs and websites would have ensured that the
information about the product and all the recommendations remained
available to users from any place. This promotes product awareness and
hence acts as an appropriate tool for Joggers World.
Problem statement
The marketing efforts require determination of the customers that the
business decides to target. The first thing in marketing strategy must
determine the target market. The marketing mix elements must be clearly
evaluated to enhance the success of the product. This allows the
marketer customize on the preference of targeted markets. In the case
study presented, the business faces challenges due to the problems with
market segmentation and target markets. The business must evaluate the
likelihood of customers cancelling the services by the company, and
retaining the customer. The business must identify the tactics to
reinforce value proposition within the industry. However, the Joggers
World succeeds during the initial stages during which the management
could identify the loop holes should the customer preferences changed.
Currently, the business is experiencing the shift in demand as the
company cannot keep in pace with the changing customer preferences and
enhance satisfaction.
2.0 Situational analysis
This analysis identifies both macro and micro economic factors affecting
an organization. This helps to identify business survival and product
positioning. This analysis enhances summarization of problems and
opportunities within the business environment to allow a comprehensive
understanding of their opportunities. This analysis must identify
particular strengths, weaknesses, opportunities, and threats for a
specific company.
2.1 Internal weaknesses and strengths
The internal analysis in the marketing plan identify internal factors
that affect an organization both positively and negatively. A business
must assess the needs of the target market. All firms must recognize
their strengths and weaknesses when dealing with customers.
Strengths identify the core competences than allow the firm meets the
need for the target market. On the other hand, weaknesses entail the
limitations faced by a company in developing and implementing the
marketing strategy. This must be examined from the customer’s
perspective since customers can be able to identify weaknesses more
easily than the business itself.
2.1.1 Demographics
The marketing in Joggers World is influenced to a greater extent by age.
At 24 years old, Nikki noted that her customers preferred serious
runners’ shoes. Nevertheless, as they advance in age, their preference
shift to less vigorous exercises and hence they use most of their shoes
both in exercises and daily casual wear.
2.1.3 Social
The population in the current location cannot be served appropriately.
There is prediction for a high demand and Nikki considers not renewing
her lease contract. The business will relocate to another area with
larger population and extensive market coverage. Also, some pressure
group compels Nikki to decrease prices for her product yet the quality
of products offered differs. Selling high quality at decreased prices
results in numerous losses to the company.
2.1.3 Technological
Technological factors entail factors relating to knowledge applicable to
machines and materials in production of goods. In Joggers World, Nikki
believes that making molds necessitates production of customized shoes.
However, she considers conducting some trainings for her employees to
equip them with knowledge on mold making and how to conduct sales. Also,
there is proposition for developing a website and blogs for the company
to enhance sales and marketing.
2.1.4 Economic
Economic environment entails the macro-level factors that relates to
distribution and means of production that affects the organization.
Nikki faces pressure from customers who require her to lower the prices
for her products. Also her competitors offer their low quality products
at low prices and this affects Joggers World whose good are of high
quality.
2.1.5 Political/Legal
Developments within the legal o political field affect the marketing
decisions. This takes into consideration political parties and other
pressure groups. The pressure groups in the case study presented create
tremendous pressures in marketing in Joggers World. This affects pricing
where the company is compelled to decrease the prices to very low
levels.
2.1.5 Culture
Businesses must eliminate the socially harmful products and give the
society products that are beneficial. Joggers World is keen to deliver
to the society products that satisfy their needs. For instance, being
involved in running, Nikki decided to engage in production of shoes and
to offer advice to runners. This gave the business a good operating
environment as the society was familiar with the running activity, hence
easily embraced any product that could enable them improve their
training.
2.2 External Opportunities and Threats
The external analysis enhances the examination of threats and
opportunities existing in a particular environment. The two threats and
opportunities, exist independent of the firm.
The opportunities entail the favorable conditions within the marketing
environment that produce rewards for the organization. Such situations
exist within a market environment, but must be acted upon for the firm
to benefit. On the other hand, threats refer to barriers or conditions
that prevent firms from achieving their objectives.
2.2.1 Company capabilities
Joggers World offers quality products and this have turned it into a
profitable business that sold high-end running shoes. Nikki emphasized
on Nike shoes that were readily accepted as top quality products. The
aggressive promotion of Nike shoes resulted in a positive image that
lead to premiums of $5 to $7. The good volumes and margins led to
attractive profits for Nikki. Furthermore, the company plans to enhance
the production of customized shoes through training the employees on
molds. This is advantageous since the previous production of customized
shoes was halted when the producer lacked enough money for operation.
Nikki believes that customized shoes will distinguish her brands from
those of other merchandisers. The company also wants to increase its
marketing through development of blog and websites. This will increase
customer awareness on the brands offered and consequent increase in
sales. Nikki had taken a broad step in increasing the product portfolio
to encourage all types of customers from serious runners to those who
do not require vigorous trainings.
2.2.2 Competition
The company faces changes from their competitors who offer their low
products at relatively lower prices than Joggers World. First, their
products were of low quality hence selling them at low prices meant that
they could still realize their profits. However, the Joggers World, on
the other hand, produced quality goods and sold them at low prices meant
that the company could be making loses. Some of the competitors
concentrated exclusively in production of one product similar to the
ones offered in Joggers World. As such, they concentrated so much on
countering the competition from Joggers World. Nikki was however not
ready to embrace drastic changes in her business as she believed this
affected the company and sales.
2.2.3 Corporate Partners
Joggers World depended on other companies that produced molds for the
production of customized shoes. After the failure of the first company,
Nikki identified another company that offered similar custom-shoe
program. Such partnership is critical in enhancing supplies in Joggers
World. However, their failure translates directly to the failure of
Joggers World due to lack of supplies. This happened once in Joggers
World leading to the failure of the company since the customized shoes
could no longer be produced.
3.0 Segmentation Analysis
Market segmentation describes the identification of market portions and
allows the firm satisfies the needs of the potential customers. The
customer preferences must be understood. This can be achieved through
target marketing that recognizes the diversity for the customers and
identifies the different market segments based on their needs. Segments
must be evaluated against identifiable, substantial, accessible, unique,
and durable criteria. This helps formulate an internally homogenous and
externally heterogeneous market segments.
The case provided in this paper represents the demographic segmentation
based on generation, age, gender, and occupation. Based on age, the
Nikki notes that the customer preference changes as they grow older. The
initial aim of the industry was to provide runners with shoes and
advice, and the jogging boom increased the profitability in Joggers
World. As the customers advanced in age, their joints, especially the
knees, ached. This led to most runners turning to less vigorous
exercises hence the change in shoes demanded. Orienting the store to
cater for the aging people meant that she neglect serious runners who
were still important customers and contributed significantly to the
total sales. The runners market has been shrinking, and she felt that
focusing on other goods might be advantageous. The customer segmentation
variables are usually fewer and purchase more quantities. Their
evaluation of offerings is detailed while the decision process involves
more than one person. Customer location remains critical. Nikki
considers shifting the location to a more spacious place, and this makes
space remains necessary to accommodate the expanding business.
The positioning strategy applicable in the case presented is
anticipatory in nature. This is so since the need of consumers have high
likelihood of becoming aligned with the benefits offered. The production
of customized shoes is anticipated to attract many customers. As such,
Nikki suggests trainings for her employees on mold production and sales.
She also wishes not to renew her lease and relocate to another region
with high market segment. This is especially critical since the market
is growing at a high rate requiring high product assortment.
The selection of this positioning depended highly on how the competitors
are positioning themselves. There Joggers World uses the strategy that
detaches it from the rest of the competitors. Nikki believes that
development of molds and making of customized shoes will make it stand
out from the rest of the competitors. Such an offer remains superior to
those of other merchandisers. Also, the pricing strategy reflects the
benefit offered, whereby, due to their high quality products, Joggers
World considers their competitors to pressure them as they compels them
lower their prices.
3.1 Primary targets
Initially, Joggers World developed due to the increased interests in
fitness that offered runners with both shoes and advice. This saw
increased sales in shoes. This acted as her primary target, and it
turned Joggers World into a profitable business for ten years.
3.2 Secondary targets
Nikki also stocked other athletic shoe and sportswear that enhanced the
sales from primary targets. This also broadened her product line.
4.0. Strategic alternatives
A marketing strategy forms a firm’s roadmap towards the realization of
its success. It is based on analysis of the internal strengths and
opportunities and marketplace threats and opportunities. This highlights
the way a company plans to achieve its goals. The generic tools towards
strategic alternatives include the penetration of markets, development
of the products and diversification. The market penetration strategy
builds sales among the customers purchasing the products of the firm.
This assumes that buyers may be convinced to buy the dame goods in
larger volumes and increased frequency. For instance, Joggers World
tries to entice customers by making molds that ensure that they get
customized shoes. According to Nikki, such an alternative makes her
business stand out from those of other merchandisers.
The penetration strategies can be implemented by using product
discounts, advertising, as well as other strategies to the repeat
customers. In market development, a firm must work on the untapped
potential in the market place for the products. This can imply pursuing
new customers for the self-made products. This involves expanding the
distribution region. The Joggers World is considering expanding its
market. The company will not renew its lease to enable it relocate to
another place with more space. In addition, the diversion to molds will
enhance making of shoes based on customer preferences, and this can act
as a major ingredient for her success.
The product development aims at creating new products for the current
customers. This enables markets build their knowledge on existing
customers and present sales people, distributors and vendors. Joggers
World considers training programs to equip their users with skills in
product development and sales. In product development, Nikki hopes that
their get knowledge on molds to avoid overreliance on other companies
that can fail easily.
A diversification strategy may be considered as a risky alternative
since it involves the creation of new products and seeks new customers.
This calls for marketers to study the competition and needs of their
customers. Diversification may pay off handsomely if implemented in the
right way. Nikki must diversify in her product assortment.
From the case study, a business thrives well if it targets all its
customers. However, according to Nikki, giving attention to the changing
preferences of consumers of a certain group tends to neglect other
groups. When she realized that her customers are getting old and their
preferences changing, she opted for some other types of shoes to cater
for the changing needs. However, this tends to neglect the needs of
other serious runners. As a result, this affects the sales due to lack
of appropriate product diversification. Nikki also remains unaware of
her move towards more challenging marketing. She considered herself
being successful enough than she anticipated at first.
5.0 Recommendations
5.1. Starting a company blog
An active blog enhances marketing. First, this helps in establishing the
credibility to the search engine recognition as well as ranking of the
corporate site. The blog enables one talk to the customers and prospects
on a daily basis regarding the products service, company specials, and
industrial highlights. The company can use the blog to get valuable
feedback from the customers through comments left on articles. Despite
the availability of free blogging, integration of a blog to the primary
website of the company can be accomplished by use of professionals. This
is especially critical in Joggers World where Nikki possesses no special
skills in website development and blogging, but she can do this easily
with the help from a professional. The professionals have experience in
expanding the readership and developing blogs. Outsourcing such
expertise may be critical for Joggers World based on the fact that the
company is aiming to expand its market segment by relocating to other
areas. Blogs can be also a good kick-start for the business to go
internationally.
In addition, to enhance marketing, Joggers World must consider the email
campaigns. Email campaigns are highly effective, and their cost is
relatively low. This can be achieved by purchasing software, and avoid
spamming email marketing must be used only with the existing customers.
This may enhance build-up of customer loyalty as well as introduce new
services and products. This helps in cutting down the marketing
expenditure.
The other recommendation is provision of online demonstrations. For
instance, if the Joggers World expanding and decided to demonstrate on
how to develop customized shoes, this would give a more practical touch
to their customers and enhance their preference. The business may also
be in a position to cut down costs on traveling, especially to give
product demonstrations and also enhance trainings for their workers. The
sales time must be equipped with live demo that can help them to follow
up on the customers.
The move towards online business can boost the marketing in Joggers
World. Research indicates that it is much cheaper and easier for a
customer to use website to get what the company offers than physical
entry into the store and looking for that product or item. The search
engine optimization and advertising attract visitors searching for
products online. This must also incorporate goal tracking to allow the
company pinpoints the generated results. The quality traffic plans and
optimization of search engines can make internet marketing drive the
business to another level and increase the prospects.
The business may offer a free resource, where the business shares its
values. The company must share and implement cost effective strategies
on online marketing. The company must get recommendations from other
established companies on the most important software to install. As a
result, the company can easily share in its resources or services. This
can build the trust to the customers and any prospects as the company
demonstrates its willingness in investing in the clients beyond the
sales. The company must also keep the site updated. The website acts as
the most important tool in marketing. Therefore, the company must endure
that the content on the web pages tarries with the company’s
offerings. This must also meet the needs of the end user by ensuring
that the content remains up to date and contains relevant information.
6.0 Implementation
The recommendations above can be easily implemented through identifying
the ideal customer. In marketing, selling to everybody imply selling to
nobody. Once the business identifies the customers, it becomes easier
for the business to identify them. From the case presented, Nikki
gambles in her choice of ideal customers. She feels that her customers
have been old and that they required a change of product. At the same
time, the diversion into other products imply neglecting her other
serious runners that still play a major role in increasing the
profitability. Nikki must decide on the type of customers and
concentrate on them, or instead, offer an assortment of products to
cater for the varying preferences of her customers. She should ensure
that she goes where the customers are. Once Nikki is clear on her target
market, she can focus on where to find them. This involves finding out
the kind of the customers’ associations. This will help in determining
the most appropriate content to include in developed website. This may
also involve talking conversationally with the customers, using the
jargon sparingly. This must ensure that the message is communicated well
and that the content will deliver the intended goals. This may also
involve writing a great timeline to appeal to the pride and emotions of
the readers. The message on the web pages must encourage people and
attract their attention to continue reading. This must be remarkable
where the blogs must highlight why the product delivered in Joggers
World remains different with those of other merchandisers. This may also
include an online customer service to answer any questions from the
online customers or give clarification for anything that the customers
might require. The company must be keen to highlight the benefits of the
product offered rather than the company’s history. The website must be
in such a way that it shows the customers on how to use the product in
improving their lives and making them outstand other people. This must
use concrete results that resonate with people reading the site.
Initialization of a company blog is based on response to product. The
blog may be initiated by the company, by using customer feedback to
initiate conversation over the internet. A company blog is a webpage
where individual users can make comments and initiate inquires on the
attributes of the products and services offered by the company. The
blogs can be set up by the IT department, developing platform where the
market can log in and make contributions and remarks on the experience
they have on the products offered.
In considering product, the blog will be used as a form of feedback from
the market, with the company taking into advice the response of the
market. Improvements to the product can be based on the response the
market has of the existing product. This approach of using blogs means
to obtain the response of the market minimizes the expenses incurred by
the company in marketing and advertising. The blogs are helpful to new
and existing clients, since they highlight on the experiences based on
products, which are useful elements in promoting the product. The price
of the products can be lowered while maintaining the same profit margin.
Promotion under the blog is a concept self-explanatory based on the
ideals and attributes of the blog. Promotion is obtained by the number
of positive feedback generated in the blog. Placement of the product
shall be on a global front achieving a competitive edge since most
products are incorporating the online technologies in campaigning for
sales and dominance in the free market. The blog presents a complex and
dependent system of the four Ps of marketing, with each P presenting its
own advantage to the popularity of the product.
Communication between producer and the market is important, and the use
of email services is important to the process. Emails introduce a
personal touch to marketing, since by taking the chance to communicate
with individuals, the advertising, and marketing takes a personal
position. Emails must be initiated via willing customers since the
feedback and communication to individual email users creates a bond that
can be used for purposes of surveys and interpersonal communication.
Emails are developed by introducing an online system where users can
register by name, location, and email address. The registration should
include incentives such as extended warranties for customers, who should
have a product code to ask for extras. Products benefit from the emails
from customer feedback and remarks, which can be used for purposes of
market segmentation and product development. Placement of the product
using emails is limited to the registered users. Promotion is also based
on the emailed individuals, who may also contact other internet users,
based on the feedback and experience shared by the registered email
user. Price suggestions can be made by the customers, and individual
users may be objected to price reductions using different methods.
Using interactive techniques to communicate with individual clients, the
product placement in the market seeks to establish loyalty in the
customers. The manufacturer can easily develop and maintain a loyal
customer base that will contribute to the development of the B2C
relationship. Contributions made by both the free market and
manufacturer shall contribute to the success of the venture in a
simplistic manufacturer user interaction.
Online demonstrations are another recommendation that affects the
business. Demonstrations by the manufacturer facilitate the
recommendable product use. Demonstrations by the company shall be
attached to the website, the company and marketing websites, to
facilitate interaction between different entities. The four Ps mix in
marketing shall be influenced by the online demonstrations, which act as
physical promotion of the product, but in a different form. The product
shall benefit from the users being able to identify the available
products, and associate products with demonstrations. The pricing is
competitive since the costs of online demonstration limit the expenses
using economies of scale. Demonstration also facilitates the promotion
by allowing interaction on a large scale considering the internet users.
The interaction between the business and market via a digital product
traverses boundaries of distance and time, and incorporate efficiency in
marketing. The demonstrations can be accessed at any one given time,
which facilitates the understanding associated with the marketing
approach. The reduction of costs and expenses is productive to the
company, which can easily engage customers in interactive communication.
The demonstrations also offer the business the ability to show case
different products, and their strengths in different market segments.
The products can be easily marketed while focusing on the needs, wants,
and desires of different players in the market.
Moving the business to an online store is the ultimate step in ensuring
proper communication between business and client. The online approach
involves the creation of an online store in which customers can access
the products offered directly from recommended suppliers and the
manufacturer. The approach is preferred in sales due to reasons such as
authenticity of a product. The product benefits from the originality and
book keeping purposes associated with the product. Supplies to the
market can be traced by incorporating the online stores, meaning that
new experiences can be developed for purposes of product development.
The approach also has another benefit in the reduction of costs, since
the use of the online venture is cheap, affordable, and accessible to
many as opposed to the conventional methods of marketing. The
limitations of time and space are conquered through the online method
since the market can access and order products from personalized gadgets
and at any time of the day.
Facilities such as online banking facilitated by automation services are
useful in the accounting front, with bills settled by online banking
services offered. The sales made by the approach can be easily tracked
by the business, meaning no loss in sales. The sales made by the
business can be easily tracked on a daily, weekly, or monthly basis via
automation of services. The business also benefits from the little
resources demanded by the approach. The automation services minimized
the number of employees associated with the business and thus increases
the benefits that are expected through trade, by minimizing human error
and efficiency. There is also the concept of communication between the
business and clients, which is facilitated by individual interaction
between the two parties. The product benefits from this approach by
incorporating individualism in the trade. Products can be ordered by the
market using accounts and resources offered by the store, with physical
interaction between the customer and market being limited and minimized.
The placement of the product means that a global market can easily
access the products, with the ability to serve thousands at any one
given second. The outlet of the business is unlimited with automation
allowing placement of orders on the hundreds at any one given moment.
The price of the product is also affected by incorporation of economies
of scale and the utilization of bargaining power from the market. The
price of the product can be affected by different forces in the market
such as the incorporation of intermediaries in the trade. Using other
sites to market products means amassing of the market but may also mean
a reduction in the expected revenue, due to common calls for discounts.
The promotional tactics also engage reputation and customer satisfaction
by comparisons between price reduction strategies and maintenance of
quality. This online approach minimizes the chance of counterfeit
products when compared to physical visits to the stores. The placement
of the product is positive in respect to the utilization of resources.
The products gain competitive advantage in the market since the expenses
associated with advertising and marketing, run down the supply chain,
minimizing the costs incurred by the market. The approach means
increased success for the marketing option, when compared to the normal
approach.
7.0 Conclusion
Using the internet as a resource is important for the B2C structure of
the venture. This approach intensifies the market scope while reducing
the expenses that are associated with similar scale marketing. The
online approach also offers resources and facilities that the physical
domain cannot, with the ability to interact being a major success factor
for the wide market scope.
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