Company History, Product And Services Ebay

Company History, Product and Services Ebay was Founded in September 1995 by Pierre Midair in his San Jose living room (Bosons 2001), he created a flea market in cyberspace when launched online auction service Auction Web. Making a name for itself largely through word of mouth, the company incorporated in 1996, the same year it began to charge a fee to auction items online. The company changed the name to eBay in 1997 and began promoting itself through advertising.

By the middle of that year, eBay was boasting nearly 800,000 auctions each day and Benchmark Capital came on board as a significant uncial backer. In early 1998 Margaret Whitman, a former Hasher executive, replaced Midair as CEO in early 1998, later the same year EBay made a blockbuster debut as a public company. The company moved closer to household name status by launching a national advertising campaign and inking alliance deals with AOL and WebTV. Bay showed its acquisitive streak in 1999 with purchases of Land (online auctions in Germany) and Ballpoint (person-to-person credit card technology). It also made one of its first investments in an outside company with the purchase of 6% of Tradeoff. Mom, an online seller of corporate surplus materials. The company set the jewel in its 1999 acquisition crown when it acquired upscale auction house Butterflies & Butterflies now known as (Battlefields). EBay also expanded down under through a Joint venture with Australia-based score (formerly PL Online).

In 2000 eBay agreed to develop person-to-person and merchant-to-person auction sites for Disney’s GO Network, began distributing information through wireless products, and Joined with banking giant Wells Fargo to offer eBay sellers the option of accepting online checks. Also in 2000 the company expanded into Japan through eBay Japan, with computer firm NECK acquiring 30% of the Japanese subsidiary and eBay owning the rest; it also launched Canadian and Austrian sites. In addition, eBay took an equity stake in online used-car dealer Outraced. Mom and launched a co- branded used-car auction website, and it acquired online trading community Half. Com. EBay strengthened its European position in 2001 through the purchase of French Internet auction firm ‘Bazaar. It also launched sites in Ireland, New Zealand, and Switzerland. EBay made a deal that year to provide its e-commerce capabilities o Microsoft developers and to add business-to-business auctions to its consumer operations. In addition, the company began offering virtual storefronts for retailers to sell fixed-price items and purchased auctioneer of foreclosed property, Homesteader. Amazon. Com was founded in 1994 by Jeff Bozos.

After months of preparation, he launched a website in July 1995 (Douglas Hovercraft’s Fluid Concepts and Creative Analogies was its first sale); it had sales of $20,000 a week by September. Bozos and his team kept working with the site, pioneering features that now seem mundane, such as one-click shopping, customer reviews, and e-mail order verification. Amazon went public in 1997. Moves to cement the Amazon. Com brand included becoming the sole book retailer on All’s website and Netscape commercial channel. In 1998 the company launched its online music and video stores, and it began to sell toys and electronics.

Amazon also expand Its European reach Walt ten purchases AT online booksellers in the UK and Germany, and it acquired the Internet Movie Database. Bozos also expanded the company’s base of online services, buying Jungle (comparison shopping) and Placental (address book, calendar, reminders). By midyear Amazon. Com had attracted so much attention that its market capitalization equaled the combined values of profitable bricks-and-mortar rivals Barnes ; Noble and Borders Group, even though their combined sales were far greater than the upstart’s.

Late that year Amazon formed a promotional link with Hover’s, publisher of this profile. After raising $1. 25 billion in a bond offering early in 1999, Amazon. Com began a spending spree with deals to buy all or part of several dot-combs. However, some have since been sold (Homegrown. Com) and others have gone out of business or bankrupt Pets. Com, living. Mom (furniture). It also bought the catalog businesses of Back to Basics and Tool Crib of the North. Amazon. Com began conducting online auctions in early 1999 and partnered with venerable auction house Soother’s.

Also that year Amazon added distribution facilities, including one each in England and Germany. Amazon is the highest-grossing online retailer in the world with $48. 1 billion in net sales in 2011, or approximately 7% of the $680 billion global e- commerce market. Media represented 7% of sales in 2011, and electronics and general merchandise represented 60% of sales. The remaining 3% was derived from o-branded credit cards, fulfillment operations, and cloud computing services. Outside the U. S. , Amazon operates sites in Canada, the U. K. , Germany, France, Italy, Spain, Japan, and China.

International sales represented 45% of sales in 2011. Question 3 New Events Amazon has stepped up its physical and e-book publishing activities. Signaling an increased interest in content production, Amazon in 2012 acquired the publication rights to more than 3,000 backlash titles from Valor Books, which will be published under the West Coast imprints of Amazon Publishing alongside Montreal Romance and Thomas & Mercer. Amazon become a book publisher with five imprints, including Necromancers and Montreal, in late 2010 when it purchased the publication rights of about 120 fiction and translated titles published by The Toby Press.

Under the terms of the deal, the company’s Necromancers and Micromanaging publishing imprints will release The Toby Press titles in print and Kindle editions for sale on Amazon’s websites and at bookstores in the US, the I-J, and Germany. Previous purchases made to strengthen its Kindle business include Touch, a manufacturer of touch screens (in early 2010), and the digital daybooks publisher Audible for bout $300 million in 2008. To grow its customer base and sales channels, Amazon spent a total of $771 million on acquisitions at home and abroad in 2011.

It purchased UK-based online bookseller The Book Depository in the fall. The Book Depository was founded by Andrew Crawford, a former Amazon. Co. UK employee, and acquiring it strengthened Amazon’s market share in the I-J and bolstered its position in the e-book market. Raising its entertainment stakes in Europe. Also acquired the remaining shares it did not already own in Lovelier International, which streams video and rents DVD’s by mail to customers in the I-J, Germany, Denmark, Norway, ND Sweden (like Nettling in the US). Amazon previously held a 42% stake in Lovelier.

I en deal was announced mall rumblings Trot Hollywood stunt’s Tanat Amazon will roll out an Internet movie subscription operation to rival Nettling, so Amazon could make use of Loveliness technology in that pursuit. Amazon could also use its Hollywood connections to expand Loveliness video offerings and grow its market share in Europe. At home in the US, the company purchased Wood Inc. , an early entrant into the social shopping e-commerce niche in 2010. Dallas-based Wood operates as an independent subsidiary of its parent. It also acquired Squids, the owner of online shopping sites Diapers. Com and Soap. Mom for $500 million in cash and $45 million in debt. Diapers. Com sells baby care products and Soap. Com sells everyday essentials. Both companies operate as independent units and retain their current executive leadership teams. Looking to improve its automation fulfillment centers, as well as cut processing times and personnel costs, Amazon in 2012 acquired Massachusetts-based Kava Systems, a warehouse technology company, for around $775 million. Meanwhile, in 2011 Amazon gave in to increasing pressure from Tate legislatures and its brick-and-mortar rivals to begin collecting sales tax on its online sales.

After pitched battles in several states, including Texas and California, the company agreed to begin collecting taxes in The Golden State in 2012. To boost membership in its Prime shipping and customer loyalty program (launched in 2005), Amazon has struck a deal with Discovery Communications. Discovery has agreed to sell the online-streaming rights to some of its older programming, including episodes of the popular shows “Dirty Jobs” and “Whale Wars,” to Amazon’s online-streaming arrive.

Amazon’s Instant Video streaming service is a distant second to Neckline, with more than 21 million subscribers vs.. Only about 5 million for Amazon. In the past few years eBay spent about $5 billion on technology related acquisitions. In 2010 eBay acquired popular German shopping site Friendliness for about $200 million. It made the deal to become a leading online fashion destination in Europe. The company continued its shopping spree in Germany the following year when it bolstered Papal assets by acquiring the German company Failsafe, adding over 1 5 lion accounts.

The deal gave eBay purchase-on-invoice capabilities that are popular to merchants and consumers in Austria, German, the Netherlands, and Switzerland. EBay bought mobile software application developer Critical Path in 2010. Critical Path had worked with eBay to develop several of its applications for Apple’s phone. The acquisition doubled the size of eBay’s mobile team, which is working to capitalize on the growing numbers of consumers who are shopping on their smart phones. In its largest acquisition since purchasing Keep, in 2011 eBay bought SSL

Commerce, a provider of such services as website development and maintenance, order fulfillment, and digital advertising, for $2. 4 billion.. The purchase not only improved eBay’s Marketplaces business, but it also extended its relationships with larger retailers. SSL clients included Aids, Calvin Klein, Betsey Johnson, and Kenneth Cole. Other recent acquisitions include Hunch, which provides recommendations based on shopping data; Magenta, a provider for software for creating e-commerce systems; Mill, a local shopping engine; and Red Laser, which enables smartness to scan bar codes for product

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Promoting products

Table of contents

Promoting products on the Web is different from using mass media promotion or personal contact. Assume that you want to explain these differences to a person who is planning to open a Web site to sell their product. Describe the product/service you want to sell and compare and contrast the traditional selling approaches to a Web approach. For each of the approaches (mass media, personal contact, the Web), explain the advantages and disadvantages as they apply to the product/service you are trying to sell.

For any product or service that is supposed to be sold, there is a need to create its awareness among the people, particularly the target audience. To do so, different companies take on different approach such as television commercials, radio spots, handbills, bill boards, word of mouth, event marketing and so on; the list seems to be a never exhausting one. However, the particular approach chosen for a particular product or service depends on a number of factors such as the nature of product, concentration of its target audience within some geographical area, the amount of budget available etc.

Moreover, another important factor for deciding the marketing communication strategy is the kind of business model and where the company wants to target the user. This paper is therefore intended to explore various options for promotion of the products sold online. It would be done through comparing the marketing options for traditional business model (brick and mortar model) with the online business model (click model). The goal of any communication strategy is two dimensional. First one is to create the audience resonance and second to ensure strategic relevance.

Audience resonance refers to making the promotion message the one that creates a wow-factor for the audience and make them go through it and imagine it. While, the strategic relevance means that it should be capable of achieving the desired purpose of the communication strategy. Keeping these two parameters in our mind as basic guideline for decision of a promotion strategy let us discuss the possibilities for the two models. When something is sold online, it is important that the promotion message reaches the audience when the audience is there online, on the internet.

Thus, for a website selling something online the most appropriate strategies would be:

Email marketing This is one of the simplest modes of marketing online which includes getting the email list and send e-mails to them about the product offerings with the URL of the website to the target audience. However, the most obvious problem attached with this is getting the email addresses of those who are really the target audience in terms of their demographics, behaviors, psychographics and geography. One way to do is add a subscription feature to the website.

But the pre-requisite for success of this strategy (subscription based email offerings) is the initial traffic at websites. • Google Ad Words Another option is to purchase Google ad words. This means that certain key words are booked by the website with Google. So when visitors searching those key words search them on Google search engine or those key words exists on its affiliate sites using Google Ad Sense, the ad of the website (sponsored link) will be displayed on those pages. This strategy is particularly successful if relevant key words are chosen and purchased.

Creating a involvement

This is a broader method that may have many aspects to it. The underlying idea is to get the people come to your website. Whatever, the reason for their coming, it would provide you with the opportunity to show case your products or services in front of them. In recent times, the most commonly used method is that of blogging.

Banner Ads on Social Networking Sites

One most rapidly emerging advertising mode for online marketing is that on social networking sites. Those who use such sites have given relevant demographic data to those sites and therefore, that can be leveraged for contextual marketing.

As we can see that these methods seem quite different from the traditional mass communication or direct marketing media. Mass communication has although many advantages for the traditional business models however it is not relevant for online websites selling something because in this model you need the people to come to your website and they could be convinced for that the best and most effectively when you do so through online medium.

Bibliography

  1. AdWords Learning Center. (n. d. ). Retrieved March 31, 2009, from http://www. google. com/adwords/learningcenter/
  2. Fisher, R. J. , Jaworski, B., Mohammed, R. , & Paddison, G. (2003). Internet Marketing. New York: Mcgraw Hill Higher Education. Five Proven Internet Marketing Techniques. (n. d. ). Retrieved March 31, 2009, from http://www. businessweek. com/smallbiz/content/aug2008/sb20080815_350346. htm? campaign_id=rss_daily
  3. Internet Marketing Strategies and Techniques that Work!. (n. d. ). Retrieved March 31, 2009, from http://www. anownsite. com/internet-marketing/ Vaughan, D. (n. d. ).
  4. How to Make the Most of Google AdWords [Search Marketing]. Retrieved March 31, 2009, from http://www. sitepoint. com/article/adwords-select-parts-1-4/

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Promoting different ranges of products

Black is an expert retailer sells quality outdoor products. Besides of the current success, they intent to explore new plots other than the existing traditional distribution channels. The major objectives of the advertisings are strengthen the awareness of the brand created by existed business; creating awareness of the new online business, and increasing the number of clicks of the website.

How does it work? Model: Feel –> Learn –> Do (Feeler) Black is an outdoor product specialist retailer, it is impossible to promoting different ranges of products on a print advertising. Besides, the process of the purchasing decision take place in the store or when people browse Black’s website. Thus, the advertising is designed to build awareness of the brand, encourage people drop into the store and browse the website as they have online purchase services. To achieve these objectives, the advertising set up to affect people by emotional communication with humourous words and attractive image-focus format rather than long copy format.

Consider about the impression of advertising cannot last long; Blacks launched 2 different versions of print advertising separately on continuous issues. These 2 advertising stick to the same creative concept and appeared as similar scenes to ensure consumer could recognize the link between them. The arrangement works on the readers who purchase the magazine frequently and continuously. Once the previous advertising actually did some impressions, the latter one reminds them of the brand by the similar appearance and same concept. The repetition makes the memory last much longer than a single advertising.

The composition of these two advertisings is very similar and simple. The background of the advertising is a picture of a normal scene that could be found in anyone’s home: an exercise bike or a TV set. The colour scheme is simple combined with mild undertone, which could stand out from other advertising due to the non-clutter positioning. The copy is the highlight and “spirit” of the advertising; consumers can feel the sense of humour in it. The expression of the words amuses readers, it seems like said by a child or some unsophisticated people don’t know the rules of the world.

The exercise bike couldn’t move; the people in the TV screen moving but not the one watching it. We see the scenes frequently and never think there is something wrong with it. But the copy indicates the inconsistency in it that we didn’t find before. After be entertained by the advertising, the consumers might have no idea what is this ads about at first place, apparently not for exercise bike or TV; until they see the logo of the brand with the description – the outdoor experts. That gives the unsettled question an explanation. Consumers could be impressed by these comparisons of move and fixation; inside and outdoor. In conclusion, the series of advertising intent to arouse consumers’ curiousness by using emotional involvement then encourage them to discover the brand through visiting stores or browse the website.

Advertising 3: AquaDrops Mint General Analysis AquaDrops is a refreshing sweet company offering different kinds of mints with fruity flavours. This advertising appeared at the latest issue of NME, which is a music magazine targeted at young people and students. The objectives of the advertising are create / strengthen the awareness of the brand, and what is more, stimulate purchase. How does it work? Model: Do –> Feel –> Learn (Reactor)

Due to the price of the refreshing sweet is low; people don’t take much time to choose between the brands through researching the benefits and features of the product. They select the mint according to personal preference rather than rational evidences. It could be affected by the position of the shelf; design of the package or persuasion by the seller. For these reasons, the advertising intended to involve more emotional factors to impress the consumers and build the awareness of the brand, to convince them choose AquaDrops next time when they want to buy some refreshing sweet.

According to Vaughn’s theory, products like candy, cigarettes or liquor satisfy personal tastes can be seen as “life’s little pleasure”; the imagery and consumer’s quick satisfaction from products are requisites in the advertising. As recommended by Vaughn, AquaDrops used imagery to build a scene of extreme dryness and offering the solution which could satisfy consumers’ needs immediately.

This advertising employed colorful scheme to attract attention. The chief taster wears neat white work clothes which implied the boredom of her job. The background filled with different colours of biscuits, the material of the biscuits seems extremely hard and dry. What is more, the bone-shape biscuits implied the slang ingeniously: dry as a bone. This picture is a spur to consumers’ imagination of describing a scene in their minds, and could image the extremely dryness that the chief taster feels. The disgusted expression on her face emphasized the feeling even more. This advertising expressed a feeling of taste through a smart picture. It visualized the dryness and impressed audience significantly. The only bright colour in the whole scene makes people feel delighted is the green text and the package of the mint.

The bubble-shaped characters and the glossy reflection highlighted the “juicy” of the words. It implied the refreshing mint is the only solution to escape the extremely dryness in the scene; and the fruity flavour could get rid of the taste of the biscuits that will give people more pleasure. To sum up, this advertising uses an imaginary scene of dryness to affect people, let them image the extreme feeling and be involved in this scene; then provide their own product as the solution to overcome the comfortlessness of dry. The usage of emotional involvement is very impressive that amused people with the sense of humour.

Conclusion

Nowadays, the increasing number of advertisings appeared in different media, how to attract attentions, stand out from other advertisings and how to persuade consumer to purchase eventually are the questions that every advertiser confront. To understand the consumers’ purchase process of different product categories, develop adaptable strategies according to theories of advertising and consumer behavour should be helpful for developing successful advertising.

References:

Vakratsas, Demetrios, and Tim Ambler (1999), “How Advertising Works: What Do We Really Know?” Journal of Marketing, 63 (January), 26-43. Ziggy Stardust Companion, “Mick Rock: Ziggy Stardust Photographer”

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Product mix strategies

A company has several major strategies at its disposal, with respect to the width, depth and consistency of its product mix. One major management aspect involved in product policy is the decision concerning product mix. The following strategies are generally employed by the producer or wholesaler of the product. Expansion of Product Mix: It is also referred to diversification. A firm may expand its present product mix by increasing the number of product lines or increasing the number of product items within the same line. New lines may be related or unrelated to the present products.

Contraction of Product Mix: In certain circumstances, the management has to drop the production of unprofitable products. A firm may either eliminate an entire line or simplify the assortment within a line; this is termed as contraction of product mix. This is also known as simplification. Alteration of existing products: As an alternative to developing a completely new product, management should take a fresh look at the company’s existing products. Often, improving an established product can be more profitable and less risky than developing a completely new one.

Positioning the Product: When a product offers satisfaction to the buyer, it gets a strong position created in the market. The product’s position is the image which that product projects in relation to rival products. A product’s features will attract the customers or prove attractive to the customers. This can be attained by product differentiation, market segmentation and market aggregation. Trading Up and Trading Down: Trading Up refers to adding of higher priced and more prestigious products to their existing line, in the hope of increasing the sales of the existing low priced products.

Trading Down is opposite to trading up. A company is said to be trading down, when it adds a lower priced item to its line of prestige products in the hope that people who cannot effort the original products, will want to buy the new one, because it carries some of the status of the higher priced products. Product Differentiation and Market Segmentation: Product differentiation involves developing and promoting an awareness of differences between one company’s product and those of others.

This strategy enables the company to remove itself from price competition so that it may compete on non price basis, that is, its product is different from and better than competition models. This differentiation is done either in quality, design, brand or packaging. Market segmentation is a natural reflection of the diverse and constantly shifting needs of the population. By dividing the whole market into a small number of specific markets, which has different wants and motivations, a marketing organization can tailor its offerings to fit to the carefully defined needs of specific markets.

Reference:

Moon, Youngme and John Quelch (2004), “Starbucks: Delivering Customer Service,” HBS Case #9-504-016 Kotler, Philip. Marketing Management, Eastern Economy Edition, Prentice-Hall India Ninth Edition, 2004.  Goold and Campbell, “Strategies and Styles”, Pearson Edition  Michael Goold and Andrew Campbell “Making Matrix Structures Work: Creating Clarity on Unit Roles and Responsibility “, European Management Journal, June 2003

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Product portfolio

This case study is about an alliance between two companies JFP and AEG to sell each other products in certain specified markets. JFP is a small company and its Managing Director Miguel Tey Feliu de la Pena is the managing director of JFP. JFP is in lighting element business where as AEG is a big company belonging to the Daimler-Benz group which is composed of several companies based in Germany. JFP is a well known manufacturer of lighting elements known for its modern design in spain. Miguel Tey has several questions in his mind to sign or not to sign the contract with AEG thus to make the final decision the JFP must consider the following factors.

ASSESSMENT OF THE PARTNER

JFP has to assess several factors of JFP so as to make a conclusion whether to sign the contract or not, for assessing the partner firm JFP has to workout on the strengths of AEG that would be useful in the improvement and the development of JFP and also the weakness of the firm which could be a problem to JFP. After taking these factors JFP can decide whether to sign the contract with AEG or not and whether it would be a strong bond with the company.

The strengths of AEG are: 1. AEG-LT a lighting business company is a part of Daimler-Benz Group that includes other large companies which were successful in their own industry/sector. It owns the brand names, like Mercedes-Benz, Deutsche Aerospace A.G., Aktiengesellschaft and is even link with the Deutsche Bank makes, AEG-LT itself a well reputed company all over. 2. AEG has a product range of both indoor and outdoor lighting element except the accent lighting element. It has several models for out door street lighting, parks, roads and highways. The models it has for interior lighting included lighting for offices, factories, warehouses, supermarkets.

3. AEG-LT has a strong sales network across the Europe, not only the distributors AEG-LT also has their subsidiaries in different parts of Europe, which adds the another strength to the AEG as a partner, which can give a boost to JFP sales on the other hand this will also allow JFP to market their product in different countries more efficiently. 4. Sales volume is one of the strengths of AEG, at present there is no comparison between the sales volume of AEG and JFP, as in 1990 only AEG was able to produce 23 billion pesetas of total sales, which make them far ahead from JFP.

Looking at the bifurcation of sales revenue made by AEG i.e. 8% for office and communication techniques; 6% for railway systems; 22% for automation techniques, 35% for electronic equipment and components; 9% for microelectronics; and 20% for household appliances, indicates the high range of the products and strong connections of AEG in the whole Europe with different industries where lighting equipments could be sold. This is another dimension where JFP can increase their product portfolio and build their connections with different players

5. Further, as mentioned in the case study company also serves different markets with the huge verity of their products. This is a positive sign for the company like JFP, as union with such a well established organization can boost the future business prospects of JFP as well. 6. AEG has the money to meet the businesses challenges that may arise in future. The strengths of AEG which are advantageous to JFP but there are certain drawbacks of having a contract with AEG (Weakness):

1. AEG will be selling JFP’s product under its own brand, thus there would be lose of identity of JFP brand Troll. AEG will be selling JFP’s product under its own brand, thus there would be lose of identity of JFP brand Troll. The reason is that it is mentioned in one of the articles of the agreement that JFP products would be sold in Germany labelled as “AEG” products; however leaflets would include the indication of “designed by TROLL” which is not adequate to represent the whole company.

2. AEG is too big company and there are chances that it cannot work in coordination with JFP. 3. JFP would have to make huge investments for meeting the requirements of the contract. For instance there would be extra cost on technology; this would be essential for the reason that there is necessity for additional technological capacity, because of business expansion. 4. AEG intentions might be to take over JFP and the same is even realised by the JFP’s M.D. Miguel Tey.

AEG was one of the bidders to acquire the business of JFP and since then the management of AEG has keen interest in their operation and kept a close eye on the business of JFP. So the intentions of the partner are actually creating an ambiguity in this alliance because the future business intentions of AEG are not very clear. For which some people as already started joking that, “In no time at all, we’ll all be wearing AEG T-shirts…” 5. The marketing costs would be borne by the importer, this also includes the obligation to hold the adequate stock and to have a spare parts stock and after sales service. This would require JFP to acquire huge volume of stocks which directly escalate the warehouse expenses, and additional employees to handle the after sales services.(Brooks, 2004)

BREADTH OF PURPOSE JFP being a family oriented business has limited resources and technology. By entering into this alliance JFP can utilize the resources and technology of AEG. Further Upon the realization of the contract, the TROLL lighting elements will be distributed in Germany on large scale. In the future JFP can offer to their products in other international market, especially in Europe in which the AEG already has their distribution network.

There are many reasons for JFP to get into the alliance with AEG: 1. JFP is facing greater challenge from local players in Spain. Thus it needs to find new market for itself an alliance with AEG will allow JFP to fulfill this objective as it has a well developed channel of distribution not only in Germany but also in Europe. (Patrick ; Bruce, 2000) 2. JFP’s customers are demanding other lighting elements both for indoor and outdoor as well but it does not have that and neither it can make them their own. AEG has those kinds of products and by this contract it will be able to meet the greatest challenge it is facing.

3. JFP’s products are considered of poor quality while it’s contrary for the AEG’s product. AEG will have to provide the technical help so that JFP can improve the quality of products to make them suitable for them to sell the JFP products. (Yadong, 1999) 4. The technical improvement in its products and a tie-up with AEG will make it easy for JFP to get VDE certification of Germany which will in turn what JFP has been looking for as the customers were asking for any kind of certifications.

VALUE The values that will be created for JFP after AEG alliance is- 1. JFP will be able to access new markets and increase its customers. It will be able to offer a complete lightning element range. It will be able to make new customers and at the same time serve them better with the improvement in quality after alliance with AEG. 2. A union with such a well established organization as AEG (which has bonding with brands like Mercedes-Benz, Deutsche Aerospace A.G., and Deutsche Bank will boost the future business prospects of JFP. It will help it improve its image and increase company prestige in the lighting segment.

3. The alliance with AEG will make JFP business more profitable. JFP can increase its product portfolio and build their connections with different players. 4. AEG will purchase from JFP. JFP will sell AEG-all this products and JFP will use the AEG distribution channels to sell in more countries – all this will mean more sales for JFP and hence greater profits 5. JFP will be able to give better service to its customers. This is so because now it will be selling more products, with better improved quality and will be having greater reach in various markets. This will result in more customer satisfaction and increase in its market reputation.

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Essay On Product Life Cycle

BMW is a German automotive company which centers its new manufactured automobile release and development on a seven-year product cycle. Maximizing the introduction and growth stage of the product life cycle, BMW has strategically employed and invested over time all features and technological offering of their products, divided into specific series models.

The company optimizes the concept of product life cycle with sheer capability to compete and keep their brand to be one of the most recognizably premium and prestigious trade names around the world. Marketing Case Study: BMW— “Newness” and the Product Life Cycle BMW: Short Company History and Product Offerings In the ever competitive automobile industry, BMW lastingly stands out as one of the great premium brands of luxury automobile vehicles, operating under keenly sharp commerce trade techniques and critically innovative marketing strategies.

The history of the company can trace its roots of innovation and technological progression outside the automobile and motorcycle industry: “BMW started in 1916 as manufacturer of airplane engines” (Author’s Last Name, Year, p. 304). Through the years, BMW has tactically broadened their automobile line in terms of a series offering that would be most identifiably linked with the company’s exhibit of fine technological prowess.

The array selection of product series gives chance for better positioning against a certain competing brand of which the company can even feasibly and effectively serve a particular opportunity in a market: “BMW recently introduced its 1 series—a compact car designed to compete with the Volkswagen Golf in Europe and the Rabbit in the U. S. —to attract a new younger audience” (Author’s Last Name, Year, p. 304). Also, owning other well-esteemed brands such as Rolls-Royce and the MINI, BMW has put its strong stamp in the auto-industry as a brand simply and truly separate from the rest.

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Product Knowledge

Comet recruits and trains the right people. They do not look for people with high intelligence and have a lot of qualifications but look for people who have good interpersonal skills and are capable to sell a product. They also usually look fro people who have the skills needed for selling products. Training of Staff All Comet Sales Staff undergo a full induction programme to build the worker’s confidence and increase company knowledge. Comet also has Product Knowledge Road Shows for its staff. Comet Sales Advisers are given in store product knowledge guides. Comet works closely with product suppliers. The product suppliers pay regular visits to ensure that the Sales Advisers’ knowledge is right and up to date.

All Comet staff learns about Health and Safety in their induction training. They are taught how to react when an accident occurs in the shop. If comet staff reacted in appropriate way when an accident occurred this would impress customers as well as maybe save someone’s life. Staff’s Appearance Comet makes sure that all staff has a uniform. The uniform looks professional giving a good impression to the customers. It makes the customers assume that they are professional and know what they are doing. Their uniform is orange and black, so they can be identified with Comet. All comet staff has to wear this uniform.

Approaching Customers Comet teaches it staff about how they should approach customers in the induction programme. Comet staff usually leaves the customer to wander around the shop on their own so they do not seem intrusive and suspicious. The sales adviser then, guides the customer through Comets product range, giving customers all the advice and time they need to make informed choices. Comet teaches their staff to maintain a positive attitude throughout the sale. They are taught not to judge customers by their appearance or gender as this may offend customers.

Selling the product Comet staff are taught not to use jargon or very professional terminology. However some customers get offended when Sales Advisers use very simple vocabulary. They are also taught to be truthful about products and not exaggerate on the products’ performance as this is against the Sales of Goods Act. They are taught to never mislead the customer as this breaches the Consumer Protection Act. It is very essential that Sales Advisers should be given some tuition on all Consumer and Employment Laws. This would prevent any crimes being committed.

On busy days Comet usually has more staff in so the customers are not annoyed by having to wait in a long queue. Sales advisers also cut down on the time they spend with each customer. Receiving payment Comet accepts credit cards for any sale, as this is very convenient for customers. This shows the customers that Comet understands that they may need to use this kind of payment. Comet gives customers the offer of buying on credit; this shows that they trust the customers and that Comet understands that it might be necessary for the customer to use this service.

Store Preparation Comet produces catalogues, which are placed at the store entrance; this makes it easy for customers to see them. Comet also has in store displays, which are normally orange and black; these colours are identifiable with Comet. Comet does not employ people to give out their leaflets as this sometimes annoys customers. I think Comet could post their catalogues to people’s homes to encourage people to buy Comet’s products. The price information of products on sale is usually clearly shown beneath or above the product on shelves, any other promotions are shown are included too. This sometimes confuses customers, as it is not clear whether the information is about the product below or above the shelf.

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