Benefits of market segmentation

There are a many benefits that can be resulting from segmenting a market:

1. Segmentation is a useful approach to marketing for the smaller firms. It allows target markets to be matched to company competencies and makes it more achievable for the smaller firms to create a defensible niche in the market.


2. It assists recognizing gaps in the market that are not served or under-served. These can provide areas for new product development or extension of the existing product or service range.


3. In mature or declining markets it may be possible to identify particular segments that are still in growth. Focusing on growth segments when the overall market is declining is a major strategy in the latter stages of the product life cycle.


4. Segmentation allows marketers to match a product or service to the needs of the target market.

The guidelines that need to be taken into account when designing global products and services

Successfully designing global products and services requires managers to make tough trade-offs between global and local demands. Several guidelines apply, including the following:

1. Globally standardised products and services can bring the benefits of not just cost savings, but also those of improved quality and customer preference.


2. The best global products are usually those that are designed as such from the start rather than being adapted from national products later.


3. Designers of global products and services should try to maximise the size of the common global core while also providing for local tailoring around the core.


4. In investigating customer needs around the world, managers should look for similarities as well as for differences.

Case Study: Marketing plan for Cable and Wireless

BACKGROUND



Company Profile

Cable and Wireless is a global communications group. The company has been recently restructured into two businesses: international and UK. The international business offers mobile, broadband, domestic and international fixed line services to customers in the Caribbean, Panama, Macau, Monaco and the Channel Islands. The UK business besides providing enterprise and carrier solutions to customers in the UK, the US, continental Europe and Asia. The company primarily operates in the UK. It is headquartered in London, the UK.



The company recorded revenues of £3,230 million during the fiscal year ended March 2006, an increase of 9.6% over 2005. The net profit was £175 million in fiscal year 2006, a decrease of 50.6% over 2005. The company recorded a net profit in fiscal year 2006, despite an operating loss, owing to a gain on the sale of non-current assets (£83 million), other income (£85 million), interest income (£80 million) and profit from discontinued operations (£90 million).



Key Issue

Decline in revenue (Poor operating performance) and Negative returns. The company recorded revenues of £3671 million during the fiscal year ended March 2003, a decrease of 16.4% over 2002. Revenues declined significantly in the Caribbean, recording a decrease of 16.3% over fiscal 2003. European revenues decreased by 13.8% over fiscal 2003. The company recorded lower returns than the industry average. Its five year average returns on assets is negative 10.09% as compared to the industry average of 3.26%. Furthermore, its five year average returns on investments is negative 14.98% as compared to the industry average of 4.37%. The company would need to effectively manage its assets and investments to ensure that returns are at par or higher than industry average. C&W recorded a poor operating performance in fiscal 2006. The company recorded an operating loss of £67 million during fiscal year 2006, compared to an operating profit of £131 million in 2005. Cash flow from operations has also declined to £56 million in fiscal 2006, down from £247 million in fiscal 2005. A continued decline in operating performance could result in a liquidity crisis, hampering the company’s capital expenditure strategy. The company must combat the causes of such a significant decline in revenues if it is to remain competitive and retain its standing within the industry.



C&W has been recording negative returns compared to its peers in recent years. During the five year period 2002-2006, the company’s return on assets, investment and equity were -23.5%, -35.2% and -51.1%, respectively, compared to the corresponding industry averages of 1.4%, 1.9% and 8%. Negative returns indicate considerable scope for improving resource utilization and operating efficiency.



Methodology

Analytic Tools

To complete a relevant research on Cable & wireless to identify the key issues I will be using various ways and look in to various factor.



•Internal environment

SWOT analysis: we will be looking at strength (key success factors) weaknesses opportunities and threats. Various performance ratios will be analysed to determine the effectiveness and the efficiency compared with industry competitors (benchmarking).



•External environment



Porter’s 5 forces: the attractiveness of the telecommunication industry in which cable & wireless operates will be measured using, bargaining power suppliers, bargaining power of buyers’ threat of new entry, threats of substitute and competitive rivalry.

Industry/Market profile and analysis: The telecommunications industry as a whole will be evaluated to determine new markets and opportunities in the industry as a whole.



PEST analysis: This will used to appraise the political, economic, social and technological issues that affect cable &wireless.



Research Methods

The group has carried out primary and secondary research. We have derived first-hand information from a staff of Cable and Wireless and. Secondary research was performed; journals, newspapers, annual reports and the internet has been used to abstract the information required to analyze and propose options for solving the problem of the declining revenue and poor returns of Cable and Wireless.



Internal Environment

Cable and Wireless (C&W) is an international telecommunications company. It provides voice, data and internet protocol solutions to business and residential customers across the Caribbean, Panama, Macau, Monaco, the Channel Islands, the UK, the US, continental Europe and Asia. C&W has extensive networks, which allow it to deliver quality telecom solutions. However, the liberalization of the markets in which C&W is the incumbent operator is leading to increased competition, which could result in a loss of market share.



SWOT Analysis

Strengths



Extensive networks

C&W has an extensive network infrastructure. With a world class internet protocol backbone network, the company is a tier 1 operator in Europe. The company’s network in the US allows it to serve 311 US metropolitan areas. C&W has interests in 78 major international cable systems, which provides it with access to every continent.



The company’s Global Roaming Exchange network allows mobile operators in over 70 countries to route General Packet Radio Service (GPRS) traffic to far end operators. C&W also has national telecom networks in the UK, the Caribbean, Europe, Asia, Panama, the Middle East, and in the Atlantic, South Pacific and Indian oceans. An extensive network allows C&W to deliver quality voice, data and internet protocol solutions to customers.



Strong international business

C&W has a strong international business. The international segment, which accounts for 37% of revenues, provides mobile, broadband, domestic and international fixed line services to residential and business customers in 33 countries in the Caribbean, Panama, Macau, Monaco and the Channel Islands. The company is the incumbent operator in most of its markets. C&W is the market leader in 18 out of the 22 markets in which it provides mobile services. It is also the market leader in all of the 21 markets in which it provides broadband services. As of March 2006, the international segment had 2.7 million mobile customers, 275,000 broadband customers and 1.5 million fixed line customers.



The mobile and broadband sub segments are largely driving the revenue growth of the international business. In fiscal 2006, the broadband customer base grew by 97%, while broadband revenues increased by 72% to £57 million.

During the same period, the mobile customer base expanded by 22%, while mobile revenues rose by 19% to £360 million. As a result, international business recorded a revenue growth of 7.8% in fiscal 2006. More importantly, international business generated an operating profit of £315 million in fiscal 2006, which partially offset operating losses in other divisions. Strong international business has enabled C&W to offset weakness in other divisions.



Energis

C&W completed the acquisition of Energis in November 2005 and managed to integrate it with its UK business by March 2006. Energis provides scale and a strong customer base to the UK business of C&W. Energis is the third largest fixed line telecommunications operator in the UK. It provides voice, data, internet, and contact centre services and security solutions to large organizations in the UK and Ireland.



Energis has a strong customer base including the likes of BBC, Caudwell Communications, RAC, Royal and Sun Alliance, the UK Government, Virgin and Wanadoo. For fiscal year ended March 2005, Energis recorded revenue of £720 million and EBITDA of £116 million. In fiscal year 2006, Energis contributed £266 million of revenue and £35 million of EBITDA to the UK results from the date of its acquisition. The combination of C&W’s UK business and Energis is expected to result in operating and capital expenditure synergies of £55 million in 2006-2007, forecast to rise to £80 million in 2007-2008. EBITDA synergies are expected to reach £40 million in 2006-2007 and £55 million in 2007-2008. Energis strengthens the competitive position of the UK business.



Weaknesses



1. Weak profitability of Bulldog

Despite strong growth, C&W’s Bulldog division continues to record operating losses. Bulldog provides broadband and telephony services to residential, small office/home office and small and medium enterprise markets in the UK. This division has managed to improve its customer base from 10,000 customers in March 2005 to 118,000 customers in March 2006, but its operating losses rose sharply from £30 million in fiscal 2005 to £120 million in fiscal 2006.



In the UK broadband market, Bulldog is unable to match the bundled offers of Carphone Warehouse and pricing of Orange. Bulldog is finding it difficult to generate profitable growth without an established brand and retail distribution. Effective April 2006, Bulldog has become a part of C&W’s UK business division. The continuing weak profitability of Bulldog could hurt the operating performance of the UK business.



2. Negative returns

C&W has been recording negative returns compared to its peers in recent years.

During the five year period 2002-2006, the company’s return on assets, investment and equity were -23.5%, -35.2% and -51.1%, respectively, compared to the corresponding industry averages of 1.4%, 1.9% and 8%. Negative returns indicate considerable scope for improving resource utilization and operating efficiency.



3. Poor operating performance

C&W recorded a poor operating performance in fiscal 2006. The company recorded an operating loss of £67 million during fiscal year 2006, compared to an operating profit of £131 million in 2005. Cash flow from operations has also declined to £56 million in fiscal 2006, down from £247 million in fiscal 2005. A continued decline in operating performance could result in a liquidity crisis, hampering the company’s capital expenditure strategy.



Opportunities

1. Growing demand for 3G services

Demand for third generation (3G) mobile services is expected to increase in the near future. Demand for 3G services, which offer advanced features like video telephony over mobile phones, high speed video transmission and data transmission, is expected to increase globally. C&W has mobile operations in 22 countries worldwide and about 2.7 million mobile customers. C&W rolled out Global System for Mobile (GSM) networks in Jamaica, Barbados, Cayman, St Lucia, Dominica, Grenada and St Vincent in 2004. During fiscal 2006, the GSM customer base of the company increased by 56% to over 1.9 million customers.

Growing demand for 3G services, which offer higher margins, would help the company increase its profit margins.



2. Fixed mobile convergence solutions

Demand for fixed mobile convergence solutions is increasing. Consumers have been demanding the convenience of using mobile and fixed line services through a single handset. Fixed mobile convergence solutions allow consumers to use their mobile handsets for fixed line connections at home, without having to use a separate fixed line phone. Typically, fixed mobile convergence solutions reduce mobile spending by 20% to 30%. BT has already launched BT Fusion, a fixed-mobile phone for consumers and small businesses.



In May 2006, BT announced the launch of a new fixed-mobile converged service for large businesses and multinationals. In the same month, C&W announced plans of offering fixed mobile convergence solutions to high end corporate customers. Increasing demand for fixed mobile convergence solutions will allow the company to boost revenue growth.



3. Next Generation Network

C&W announced plans of transforming its UK core network into a next generation network in 2005. This transformation, expected to take three years, is estimated to cost £190 million. It involves the convergence of C&W’s existing five separate service platforms onto a single integrated IP service platform; the reduction of backbone nodes by 50% and rationalization of metro-edge and metro-access nodes; and the installation of ten new soft switches to replace the existing seventy legacy voice switches.



Upon completion, this network will allow the company to offer highly innovative and cost competitive services. This single, integrated and versatile IP based platform will provide C&W with a significant competitive advantage in the UK.



Threats



1. Pricing pressures

The transatlantic, pan-European and US markets are all currently experiencing considerable levels of overcapacity. Overcapacity resulted in a severe price decline in these markets. Due to lower prices many network operators have become financially weakened, and this resulted in consolidation across the industry. Leveraging their scale, the larger companies have cut down prices. This is compelling C&W to lower its prices to combat a threatened loss of market share. Intense price competition puts pressure on the company’s profitability and market share.



2. Liberalization of international markets

Many of the markets in which C&W is the incumbent operator are transitioning from monopoly environments to competitive markets. With the global trend towards liberalization of communications markets, the host governments want to modify exclusive licenses, in order to facilitate an orderly transition to a fully competitive environment. For instance, the Jamaican market was liberalized in 2003, followed by Trinidad and Tobago in 2005.



Increasing competition, particularly in Barbados (following liberalization of the market in February 2005), was the main driver of the 10% decline in international voice revenues in fiscal 2006. The liberalization of the markets in which C&W is the incumbent operator is leading to increased competition, which could result in loss of market share.



3. Increasing contact centers in India

An increasing number of companies in UK are off shoring services to India, which could affect the contact center business of C&W. The UK majors such as HSBC and Prudential have already started operations in India, and many others are expected to follow. In 2004, 17% of the agent positions (number of seats) in India were serving UK businesses. The total number of agent positions in India is forecast to reach 363,100 by 2009, from 179,000 in 2004, a CAGR of 15%. The growth of contact centers in India would erode the contact center solutions business of C&W.



External Environment



Porter’s Five Forces

The Porters Five Forces of Competition Model (figure 1) is used to analyze the environment in which Cable and wireless compete in. It operates in an industry which is characterized by intense competition, high demand and constant technological demands. Analyzing the external environment will enable Cables and Wireless to understand competitors better and to find a improved strategic method of remaining completive.



Threat of new entrants

Cable and Wireless compete in global market operating in over 80 countries. Due to the scale that the company operates on, a high amount of capital investment is necessary making this the biggest barrier-to-entry. To cover the high fixed starting up cost, entries would require a high level of financial backing which is unlikely as solid operating skills and management experience is fairly scarce. The ownership of a telecom license also presents a huge barrier to entry. In countries such as the US, an application to Federal Communications Commission must be made to receive regulatory approval and licensing. The high competition already in place elevates the barriers.



However Cable and Wireless face threat of entry from already existing organization collaborating in joint ventures. An example of this would be the merger of ATT and T Media One. Such competitors are a new threat as they formulate synergy enabling them to become major competitors. There is also a limited amount of "good" radio spectrum that lends itself to mobile voice and data applications.



Bargaining power of suppliers

The telecom equipment suppliers would seem to have greater power over the telecom operate. This may appear so as they provided high-tech broadband switching equipment, fibre-optic cables, and mobile handsets and billing software. However there are actually a numerous large equipment makers around like Nortel, Lucent, Cisco, Nokia, Alcatel, Ericsson, Tellabs are just a few of the supplier names.



There are enough suppliers, arguably, to dilute bargaining power. Even though the equipment provided by suppliers is essential for Cable and Wireless to compete in the industry, if one supplier is unable to provide them with what they want they can easily approach others. An example of this is Nokia's network infrastructure Nokia supply Cable & Wireless with GSM and WCDMA 3G radio networks, including HSDPA, and core networks, including the Nokia MSC Server mobile soft switches.



Cable and Wireless have improved they relationship with suppliers with the creation of my SAP and Accenture (system dealing with purchasing) receiving from the Chartered Institute of Purchasing and Supply Awards. The company has more effective dealing with suppliers which has weakened bargaining power of suppliers as many will be willing to work with a company with a prestige’s reputation.



Bargaining of power of buyers

Customer of cable and wireless would be said relatively high bargaining power as the industry is fiercely filled with choice from numerous telecoms provided. Customers are forever seeking lower prices and better service. However this power can vary depending on the market segment .Small and individual customers i.e. residential customers have the highest bargaining power as switching cost are minimal if at all.



The costs for larger business customers however, especially those that rely more on customized products and services can be greater. In certain circumstances however whereby Cable and Wireless streamlined its business in the UK by axing up to 3,500 jobs over the next 4-5 years and reducing its customer base from 30,000 to 3,000 buyer bargaining power is driven down. This is however unhelpful for Cable as other competitors it can move in where they are moving out from.



Rivalry of competitors

The 90’s saw the level of competition these industries alter. With the de-regulation and receptive capital markets made it easier for new entrants to entry increasing rivalry. In a fast moving industry such as this, technological advances are paramount if a business such as Cable and Wireless are able to bet of competitors. Rivalry is high as competitors continually look for ways to lure customers with lower prices and better services.



It is more so than other industry as the products that are provided are very similar and the option for diversification are minimal. However these factors drive industry profits down meaning that high levels of exist barriers. Networks and billing systems cannot really be used for much else, and their swift obsolescence makes liquidation pretty difficult. The rivalry of competitors is increased by mergers in the industry.



Threat of substitute products

Threat of substitution can come in three main categories. Substitution of product for product, substitute of need and lastly substitute…. In the telecommunication industry all three are evident and the threat is very real. Substitution threats are created from products and services from non customary telecom industries. The competition for buyers is increasing in the cable, tv and satellite market. People working in that industry have direct lines in to homes and the services they offer i.e. broadband and satellite links can substitute for rapid company networking requirements.



The internet is putting telecom companies under pressure because its becoming a feasible medium for cut rate voice calls and could affect telecom companies income pertaining to their core voice. The constant development in technological advances makes threat of substitute very high. An example of this is the new Apple iTV devices which will receive programs wirelessly from home computer to play on the television screen.



PESTEL Analysis

Economic



Pricing pressure

The transatlantic, pan-European and US markets are all currently experiencing considerable levels of overcapacity. Overcapacity coupled with lower than expected levels of demand growth contributed to a severe price decline in these markets. This in turn resulted in many network operators becoming financially distressed and filing for bankruptcy or chapter 11 protection. This could compel C&W to lower prices to prevent erosion of its market share or to continue attracting new customers. If C&W is forced to lower its prices the financial condition may be adversely affected.



Reduction in capital spending

A significant percentage of the C&W's revenue is generated by providing business customers with telecommunications, IP, voice, data, managed hosting services and content delivery. The telecommunications industry is currently facing unfavorable market conditions, including amongst other factors, the decline in investment in the industry and decline in demand for certain telecommunications products and services. A continued slowdown in capital spending by service providers and other customers may affect C&W's revenues.



Currency risk

Fluctuating foreign currency exchange rates will have a significant impact on C&W's earnings. C&W generates a substantial percentage of its revenues (about 59.6%) outside of its domestic market in the UK. Fluctuations in the value of the currencies in the international markets in which the company operates will affect C&W's total earnings. For instance, C&W regional business reported revenues of £1411 million in 2003, a decrease of £55 million or 3.8% from 2002. Many of C&W's regional revenues and costs arise in currencies that are linked to the US dollar. Fiscal 2003 results were affected by, an 8% devaluation in the US dollar against sterling and a 14% devaluation in the Jamaican dollar.



Political/Legal

C&W faces regulatory and market access constraints in various countries resulting from laws, public policies and licensing requirements. Many of the markets in which C&W operates are in transition from monopoly environments to competitive markets. With the global trend towards liberalization, C&W is engaged with host governments, who want to modify exclusive licenses, in order to facilitate an orderly transition to a fully competitive environment.



Following the transposition of the EU electronic communications directives into national laws, member states will no longer require market entrants to hold an individual license. Instead, providers of electronic communications networks and services would be regulated through general authorizations. Accordingly the individual licenses that C&W holds in EU member states have been or will be revoked in the near future. Some licenses provide that, upon their termination, the relevant government may purchase, or have the option to purchase, the property, plant and equipment of the licensee in that territory at a fair market value. This may adversely affect the company's business. Furthermore it would lead to increase in competition in the markets and may adversely affect the company's market share.



Technology



Increased broadband penetration

There has been increased broadband DSL penetration in the UK recently. This provides companies the potential to change the economics of access for business customers, providing high quality, low cost voice and data applications on a single platform. Moreover, local loop unbundling (LLU) will provide selective opportunities driven by customer demand. Cable & Wireless' acquired Bulldog Communications in 2004. Bulldog offers a wide range of high speed broadband services using digital subscriber line technology. The acquisition of Bulldog will accelerate C&W's ability to deliver directly connected DSL solutions to existing and potential customers with an experienced team specializing in LLU services.



Greater awareness for security products

Demand for security products has been increasing significantly mainly due to greater awareness of security and homeland defense worldwide. The company provides access solutions comprising security services such as managed firewalls, intrusion detection and response, scanning and analysis and authentication and encryption services. Increased legislations aimed at improving law enforcement and security measures will increase demand for products offered by the company.



Market Position, Industry Competitors and Benchmarking

C&W is the world's fourth largest international carrier of voice traffic and operates significant international submarine cable and satellite systems that are centrally managed within the United Kingdom. The IP backbone AS3561 provides IP connectivity to the United Kingdom, United States, European and Japan regions. C&W is the second largest telecommunications company in the UK after British Telecom.



The following companies are the major competitors of Cable and Wireless plc:

1. COLT Telecom Group Plc


2. Level 3 Communications, Inc.


3. NTT Corporation


4. Verizon Communications


5. Vodafone Group Plc


6. Carphone Warehouse Group Plc


7. The Easynet Group Plc


8. Gamma Holding NV


9. MCI, Inc.


10. BT Group plc


11. Global Crossing Ltd.


12. Qwest Communications International Inc.


13. Kingston Communications (HULL) Plc

Market Analysis

The leading geographical market is the US, which contributes $235.1 billion in revenues to the global industry. In recent years the markets of the developed world have been driven by broadband subscriptions, within the US alone there are over 41 million households and firms subscribed to a broadband connection. The Asia-Pacific market is increasing in importance due to the rapidly expanding economics of the NICS, China and India. Asia Pacific has the second largest market, with combined revenues of approximately $170.1 billion.



The global diversified telecommunication services industry consists of fixed line telecommunication services and alternative carriers. Growth rates in the industry dipped in 2003 but have since returned to a state of buoyancy as the telecommunication needs of the emerging economies boosted revenues. Eastern Europe is growing in importance; as are the markets of the Asia-Pacific region allow global industry to communicate on a level playing field. The global diversified telecommunication services industry generated total revenues of $580.2 billion in 2005, this representing a compound annual growth rate (CAGR) of 3.3% for the five-year period spanning 2001-2005. Fixed line revenues are unlikely to match present revenue growth in the future as the demand for wireless forms of communication take increasing hold of the wider telecommunications industry.



In the US alone there are over 41million households and firms subscribed to a broadband connection. The Asia-Pacific market is increasing in importance due to the rapidly expanding economics of the NICS, China and India. Asia Pacific has the second largest market, with combined revenues of approximately $170.1 billion. Looking forward, the industry is forecast to accelerate its current performance, with an anticipated CAGR of 4.6% for the five-year period 2006-2010 expected to drive the industry to a value of $727.4 billion by the end of 2010. Volumes are unlikely to see large gains in terms of growth; revenue growth will largely be driven by rising prices and technological substitution. The rapid industrialization of China and India will continue to drive the industry.



OPTIONS DERIVED



PLAN A



Continue to seek out alliances to expand

Cable &Wireless’s principal operations are in the Caribbean, Panama, Macau, Monaco and the Channel Islands. Its ownership of these companies is varied – some are wholly owned and others are partly owned with the public, the local government or other corporate partners. Its 33 businesses comprise 24 subsidiaries and 9 joint ventures and associates.



Cable and Wireless can move forward by continuing to build coverage in larger markets and utilize mergers and acquisitions for further expansions. In smaller markets, it can have affiliate or form new partnerships in order to expand their networks. They will therefore pay lower than typical roaming rates for customers that travel to affiliate markets. It can also use joint ventures to build out certain market segments where shared networks make the most economic sense. Cable and Wireless can continue to use roaming agreements to extend coverage. Increasing and solidifying its international coverage. This is critical in order to compete successfully and reduce the pressure on its margins.



Global brand strength

Cable and Wireless’s recognition as a global brand should build upon the strength of its operating company brands. This will enables it to embark on more high-profile marketing campaigns which will give it the ability to offer global services which companies operating in individual markets would find difficult to do on their own.

This will therefore give Cable and Wireless an important competitive edge in local markets. Due to the diversity of its markets in terms of size, geography and culture, it should treat each business individually by tailoring its services to the relevant market – but make effective and efficient use of scale and position as a global network.



Exposure in emerging markets

Cable and Wireless has investments in many emerging markets in Asia, Latin America, the Middle East and Africa. From the industry analysis of this report, China and India represent two major markets for cellular telecommunications that are likely to grow rapidly in future years. China is one of the world’s largest mobile phone markets and though, Vodafone has acquired a presence in it through China Mobile Limited (Vodafone currently owns 3.3% of China Mobile Limited), this presence is small.

This provides less opportunity to fully exploit this lucrative market. India also appears very appealing, with a population in excess of one billion, where the company as no presence. The company’s lack of presence in emerging markets acts as a disadvantage for the company as it is unable to leverage on the growing opportunities in those markets.

E-zines as Marketing Tool

E-zines or electronic magazines are the online version of magazines. They are content-rich and contain information regarding a certain topic in the form of magazine articles and features. E-zines are superior cost effective marketing tool because you can advertise directly, be a sponsor, submit articles, send press releases and start your own. Major advantages of ezines are lifespan of your ads and are often shared with friends and associates. They are very targeted advertising medium and when you place an ad in an ezine you can see it in relatively short period of time.

Sales Power of Email Marketing

E-mail marketing is a form of direct marketing to communicate promotional messages to potential or current customers. E-mail marketing are often more effective than printed direct mail. Here are a couple of recommendations when setting up an e-mail marketing campaign.

Determine Your Goals

Behind every successful marketing campaign there must be specific goals. You must set goals that are specific and quantifiable. Once the goals are determined, you must be committed to reach the targets. Every campaign sows better results when there is clarity of action.



E-mail Marketing Strategy

Building your Brand name

Let people know about you, your organization and your product. Create a dear image in their mind. A simple way to build branding is sending periodic newsletter over a very short period. Be consistent. Focus on a few messages that are core to your values and goals.



Building good customer relations using emails



The most vital factor in business is creating good customer relationship. Good customer relatioship will foster customer loyalty and increase the possibility of up-selling and cross-selling of your products.

Tips to Writing E-mails 1. Get to the point 2. Keep it clean 3. Be clear and concise 4. Use signature everywhere 5. Information must be newsworthy 6. Target to the right audience 7. Respond promptly 8. Keep the message focused 9. Avoid excessive use of adjectives and fancy language 10. Provide as much contact information as possible

Use your Newsletters or E-zines to promote your sponsors



Once you have established a large mailing list for your newsletters or e-zines, you can potentially bring in more revenues by placing relevant ads, sponsorships or affiliate programs.



Build Trust with Relevant E-mails



Besides providing newsworthy emails you must be focused on making your emails as relevant as possible to your target audience. Keep in mind that your e-mails are competing with hundred other e-mails on your subscribers' inbox. So make your subject line catchy. After all if you don't get their attention, they wont open your emails. Don't forget that the customers will read the email only if they are relevant. "When e-mail is customized conversion rates double. (SmartMoney Magazine, May 2006)"

Make your E-Mail Readable



You must consider on designing your e-mails so they are readable by many popular e-mail programs like Yahoo, Gmail, Hotmail or Outlook. More and more web-based programs have preview panes. If your newsletter is too wide or long to load, your audience may not be able to view your newsletter. Some programs will disable images to load on e-mails for spamming reasons. You may consider not using images when sending important or urgent messages to your customers. Testing your e-mails on variety of e-mail programs and computer settings is the only way to ensure that your e-mails are readable by your audience. Many newsletter providers will provide statistics on your conversion rates. Test and measure your conversion rates. Redesign if necessary to make improvements.



Building your Mailing List with Search Engines



Search Engine marketing is an easy and affordable way to attract customers and generate leads to your website. Entice your visitors with free newsletters, white papers and product demos. Use this opportunity to ask their emails to build your mailing list.



Give your Readers some control



You must consider the recipients requirements first. Give them control. Try to understand what they want. Let them choose the format (text or HTML), of the contents, the frequency of getting e-mail, whether you can send other information, etc. Add a link to your each newsletter to allow your readers to unsubscribe from the mailing list.



Finally, sending message is not your only job. Plan for specific follow-ups. Send automated bounce-back replies. Integrate the e-mail campaign with other channels. Try to generate customer interest in every possible way.

Go ahead, all the best!

SMEs Marketing Strategy

SMEs marketing strategies, methods and technique should be based on AIDA,

1. They have to attract the Attention of the customers in the first place to their products and services.


2. They have to increase the customer Interest by demonstrating the benefits and advantages of their products and services.


3. They have to convince the customers that they want and Desire their product and service and that it will suit their needs.


4. They have to guide customers to take Action and purchase their products.

Nevertheless SMEs should also give great attention to the followings:

1. Product variety is a key issue that determines a potential customer’s willingness to use their site, therefore for customers to regularly use their site; they must provide differentiated product range and build long term relationships.


2. Be destination site, by appearing to offer a complete service, rather than simply being the cheapest or most convenient source for a particular product.


3. Customisation and bundling which means offering a combination of products or services that the individual consumer needs at attractive prices.


4. Provide relevant content and recommendations to their customers based on individual user preferences, previous purchases and purchases of customers with similar interests. SMEs should be able to obtain this information implicitly, by tracking customer buying or usage habits, or explicitly, by gathering information through customer forms or questionnaires.


5. Aggressive advertising campaign to make their potential customers aware of their products and services, furthermore convince and persuade their potential target customers to buy their products and services.


6. Customer retention by motivating and encouraging their customers to remain loyal to them and their products and services through:




• Loyalty programs, to build their loyalty and build share of mind in a crowded marketplace.


• An excellent customer service and regular communication with site users either through newsletters or more personalised messages.




7. Give their great attentions to customer’s feedback and the ability to respond rapidly to customers concerns. SMEs should invest in Live Text Chat system that enables customers to interact by text with their customer service representative.

Furthermore SMEs must make their potential customers aware of their web site in the first place, therefore the website should be submitted to all the search engines such as Google, Yahoo and MSN, furthermore a huge effort should be taken to improve the ranking of the website in search engine listings (search engine optimization), also advertisements on search engines (pay-per-click and paid inclusion listings). In addition to advertisements on search engines their site should be advertised with websites that have similar customer demographics. Moreover SMEs should be advertising in magazines and newspapers Offline advertising.

[Google] The Secret To Google's Success

Opinion from a member of http://www.braintique.com

The Secret of Google's Success? Of course, there are really no "secrets." But here, in my opinion, are some of the reasons that Google has been so wildly successful.

The most important secret of Google’s success is that the people who founded and who work at Google are incredibly, incredibly smart.

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Google is a research-focused company. The attitude is: build something nifty, and then we’ll figure out how to market it. This stands in marked contrast with most other companies, particularly those that have a direct relationship with users (consumers). It’s much more typical to think first about marketing, and only second whether something is a cool technology. With Google, the technology comes first. With most consumer companies, technology is used in support of product marketing.

Technology and research for the sake of technology and research is emphasized so much at Google that employees are allowed to spend some of their time on whatever interests them, whether or not there is any direct usefulness. Many of Google’s new products have come from this employee freedom. Google’s atmosphere is somewhat like that of a university computer science department, except that meals are catered and dental care and dry cleaning are provided on the premises.

Of course, a huge index of Web pages, and the hardware and software to quickly run queries against the index are important. So is a lean, elegant primary user interface, completely devoid of advertisements or other clutter. Results in Google cannot be purchased, and advertising, or sponsored links, in Google results are clearly marked as such. Integrity in not selling search result ranking is an important factor in Google success.

Successful Internet Marketing

Interenet marketing, to most, it's just what stand behind some "make money at home" program. No, it's more than that.

If you are a business owner you will probably be looking for viable ways to increase the traffic to your website and are probably trying to do this through different internet marketing techniques.

Most new business owners may find the concept of internet marketing a little overwhelming however a little time reading and understanding internet marketing can quickly erase these fears.

Internet marketing is not based on luck, it involves a lot of hard work and effort. Although when searching the internet you will find programs that will promise to give you success instantly or in a few days,what you need to realise is that any scam or scheme that says things like that will never amount to anything. The simple fact is if you want to make money on the internet through your business you have to work hard and be patient.

Internet Marketing is a form of advertising. It is done via the internet by various ways including

Affiliate Programs, E-mail advertising, directory submission, linking, writing articles and submitting to article sites etc

Internet marketing is also commonly known as online marketing, it is a way of communicating with the market place to advertise and sell your product.

Although internet marketing has continued to grow and has had a huge impact on internet businesses a lot of people will give up after a shot time if they do not see results. Internet marketing is an important aspect of a business and one you have put the work it will continue to advertise your product for you while you continue with other aspects of your work.

It is important to plan ahead, if you decide to add you website details in the form of directory submission, this task can be long and rather boring but can benefit your site in many ways. Make sure you have a file saved with you website details so you can simply cut and paste it into the relevant places to save time.

Most directory submissions will need the following information:-

Your website URL

Your Name

A description of your website

A resource box (always remember to add a link to your site).

Articles are another excellent way of bringing traffic to you site as well as establishing links to your site. There are many sites on the internet that you can send your article to, most of which do not require a link back which is always an added bonus. This is a great way to talk about your product and once added to your website will add quality content also.

The main thing to remember about Internet marketing is that you only get out what you put in. some of it will take a long time to establish its self but any promotion of your site is of great benefit to you. If you do not have time your self to do this employ someone who will or ask a family member.

Internet marketing is an important part of any online business.

An Introduction to the Different Types of Affiliate Programs

Today, affiliate marketing programs is seen as one of the most important methods by online companies and merchants to market their products and services because implementing an affiliate program doesn't cost much money and it helps generate a consistent stream of online profit.

On the other hand, the affiliates see affiliate marketing as a feasible and low cost method to make online online by promoting other people products using a website or without a website (using Google AdWords PPC advertising program).

There are many affiliate programs on the Internet and not all of them are similar. The most basic affiliate programs fall into 3 categories:

• Pay Per Performance
• Pay Per click
• Residual Income Affiliate Marketing Programs

Pay Per Performance
Pay per performance (PPP) affiliate programs are what most companies and online merchants likes to use. The companies only need to pay when an affiliate referral translates into an action. The action can be a purchase or a lead. The affiliates will spend their own money to promote the affiliated company's products, This save a lot of money for the company. PPP affiliate programs can be futher classified into 2 sub-categories:

• Pay Per Sale (PPS) The title says it all. The company only pays the affiliate when a visitor referred by the affiliate make a purchase.
• Pay Per Lead (PPL) PPL is a little different to PPS. PPL affiliate programs usually used by finance and insurance companies. In this type of affiliate marketing, the affiliate will be paid a fixed commission whenever a visitor referred by him/her to the merchant's website requested a quote or filled up an online application form.

Pay Per Click (PPC) Affiliate Programs
PPC affiliate programs are most popular. You should have heard them a lot. PPC programs are probably the easiest way for web publishers to make money from their websites and blogs. The affiliate gets paid a certain amount ($0.05 to $0.50 usually) whenever a visitor click a banner or text ad displaying on the affiliate's website. PPC typically used by contextual advertising companies like Google AdSense, Yahoo Publisher Networks and much more.

Residual Income Affiliate Marketing Programs
In this type of programs, the affiliate not only compensated for every customer referred to the merchant's website, the affiliate is also paid whenever the referred customer returns to the site and buy another product.

The different types of affiliate marketing programs would deffinitely work differently for merchants and affiliates, and each would have their own advantages and drawbacks. To find out which types of programs work best for you, you'll have to know which one of them suit your need and characteristic most. And then start testing them.