Posts filed under 'Technology'
Offline Shopping(shop from the physical store) was the only option for almost 20 years ago, but then came into picture the E-commerce, leveraging Online Shopping model with deals, discounts, offers and much more to the customers. At early stage many prefer to look at a product online and then shop offline from the store, now it’s changing from going to store first, selecting the product and then shopping online from site. Here are some factors, including 4P’s of marketing on which we can differentiate both the models:
1) 1st P – Price/Cost/Initial Capital - The main factor behind any business is to raise initial capital and finally convert it to profit. Looking at Offline Store, it costs much more for renting the land, building the office and infrastructure. Either you alone can handle the store or you need 2-3 persons to contribute. While the Online concept can easily be implemented without having office space, even some incubators can help initially. You just need to build a online store connect vendors and start selling. But yes, it takes much less time to start a physical store as online needs technical things to be build up first.
2) 2nd P – Place/Location/Access - The traffic of the customers depends on the location of your store, which place it is setup and how easily public can access it. This issue always remains while dealing with physical retail until you start building-up your chain of stores across the glob. Offline stores can be started with only one, mostly, whereas online store can be accessed anywhere in the world with just internet access. Scalability is much harder to achieve in physical store, because more you build the stores, more capital you need. Online is much flexible in this scenario, just develop a site with cart, host it and let any customer from anywhere purchase products from it.
3) 3rd P – Product/Category/Quantity - Giving customers a wide variety of choice increases his second shopping and loyalty probability. This is an challenge with physical stores, they can’t include much categories, their many sub-categories and wide range of products in each sub-categories. This happens as it again requires high intensive capital and warehouse issue. Even if you consider every products, one can’t afford it in a large quantity. Whereas in online dropship model, you can accommodate as many number of products as you can because you neither have to purchase it nor store it, when order arrives, inform particular vendor with product code, they’ll ship it to customer’s doorstep. The category/product management can be the challenge in online store as per the various vendors you are signing, but can be adjusted. Touch-Look-Feel is the main challenge in online shopping as none of the customer can feel the product, get chance to touch it, and try it and that’s the reason why high end products can’t be sold online.
4) 4th P – Promotion/Deals/Coupon/Discounts - Only two things that customer thinks of while purchasing product are, Price & Brand, and that’s the reason for brutal competition in retail business. If one sells 10% disc, you’ve increase to minimum 15% to increase customer traffic. Though offline stores are having these factors to attract customers, but online stores are leveraging these factors day-by-day, focusing on price discounts. You get coupons with discounts, vouchers on sign-up, credit balance that can be used in next purchase, combos and much more. Availing these all things are very hard in physical stores, as you can’t give vouchers to customers as they enter your store, can’t have discounts or credit balance on next purchase and so on.
5) The M – Marketing - Customers will not know your existence in the market until you market your brand. For physical stores, most of them relies on word-of-mouth strategy to increase the traffic, or pamphlets in newspapers or posters in various buildings. Most of them don’t use most common strategies like newsletters, social media, digital media, testimonials, etc. This is the place where online store overtakes the other as most of them are well aware of these marketing techniques and keeping them as their base, word-of-mouth comes as secondary.
The above post was related to start-ups and medium level businesses. Yet many other factors still were not emphasized as the above are the best ones. Offline or Online depends on the personal experience and thinking about to start and grow their model, it’s still two sides of coins, neither of them can be balanced nor compared in every aspect.
July 25th, 2013
From the physical store meant for selling goods to customer face to face, a new trend arrived in India from 2000, converting this physical store to online store called E-commerce Model. The basic model remained the same, selling goods to end customers, but as the time passed new innovations were meant to be done in the Online E-commerce on seeing the cut throat competition in the market. And today, the competition is such that it takes just 5 seconds to lose your one customer.
Here are the some factors that reflects the customer satisfaction, trust and loyalty to your E-commerce Web-portal:
1. Loading Speed Of Website - Seriously, no one wants the user to wait for 20-30 secs to open the home page of the website, it should be within 5 secs. If the first loading takes too long, there is 75% chances that your customer will switch on to another website looking for same product. Make the technical changes for increasing the loading speed.
2. Replicate Same On All Devices - You may think that once you’ve created website then you’re done, but you are pretty much wrong. The world is now accepting Smartphones, Mobiles, Tablets compared to Desktop & Laptops. If your website don’t response well on above devices, your customer is gone, first impression is the last impression.
3. Look & Feel, UI - Though you are very professional in business terms, but don’t be too professional in developing the website that has no good look and feel. The User Interface is also one thing that interacts with end customers while purchasing the product, after all your end users are youngsters and ladies, in most cases. Enhance the product images to give a 3-D effect, 360 degree views, close material view, great zoom, easy navigation, etc.
4. Easy Checkout Page - Most of them consider it as a negotiable issue, but if a customer has made his/her cart and your checkout page takes 4-5 clicks to finish whole transaction, customer will not be interested to purchase from you next time. Make the checkout page as one page itself or at least use advanced tech to avoid more user clicks while checkout process.
6. Various Payment Methods & Options - Understanding the customer behavior is a headache in online shopping, you don’t know what he’ll purchase, how he’ll purchase, etc. Give all possible options to customer in terms of Payment Options, you never know customer is related to which bank or which card customer is having. Also include COD as one of the payment option, most of them opts this option itself and thereby gaining loyalty from the customer for the next purchase.
7. Social Media Integration - 94% of the world population that can’t live without using Social Media in their daily life. Allow users to share their views about your website to their friends, colleagues, mates, etc. Let them comment about your product, getting likes on what they really like, collecting this data helps you to determine some what customer’s behavior.
8. Customer Service & Feedback - E-commerce means dealing with end-customers(mostly) daily and lacking to provide excellent customer service will make you fall from mountain. Fulfill any customer demand, have it 24/7 functionality, accept and react on their feedback, it can be positive or negative too. As hotel manager servers you as his customer, same would be for you in online customers.
9. Related Products - Want to increase the sales directly by customer, try to integrate the related products section in products view page. This concept will make customer more eager to purchase other related products and thereby increasing your sales. Even if he doesn’t buy it, he’ll at least inform his colleagues about the product. One view to customer is enough attract for that product.
10. Search Capability - What if customer didn’t find he came for to your site, do you have proper search functionality to satisfy his demand? Search makes easier for any customer who came directly to your website for letting him search and get what he came for. Even filtering mechanism should be integrated based on many attributes like color, size, brand, material, etc.
Above were the 10 most critical issues that has to be there, even some them attributes are there which are covered above, like, having proper categories & sub-categories, comparing items, wishlist, etc. Somehow these are very common that now a days most of them are implementing, but above 10 were mostly neglecting.
July 18th, 2013
Though having Google’s Android and Apple’s IOS hitting the market with their name, quality, value and functionality, Telefonica has launched a new Firefox OS Smartphone in the market jointly with Mozilla and ZTE. Telephonica is Spain based telecommunication and broadband service provider in Europe, Latin America and Asia and 5th largest mobile network provider in the world; Mozilla, a open source project by Netscape Communications Corporation, launched the Mozilla Firefox browser and now developed Firefox OS for the Smartphone; ZTE Corporation, China based multinational telecommunication equipment and systems company, the 4th largest mobile manufacturer in the world, has developed this Smartphone’s design.
The above trio has launched world’s first Smartphone, ZTE Open, with Firefox Operating System in Spain for 69Euros(90Dollars) and soon be launched in Latin America. As per the statement by Carlos Domingo, Chief Product Development, Telephonica, in one conference, this device would be mainly be for youngsters and those who are new to use the Smartphones.
Equipped with a 3.5-inch & 480x320pixels touchscreen, includes a 3.2MP camera(back), 256MB RAM and 512MB flash memory enhanced with a 4GB MicroSD card that comes as part of the package.
The ZTE Open is fully integrated with Facebook and the Spain-based social network Tuenti and talks are on about incorporating the WhatsApp instant messaging service, Telefonica said.
Mozilla executives said the ZTE Open is the “first chapter” in what they expect to be a long project, one that is already attracting interest from many other telecommunications companies.
Excerpts – Techgig
July 3rd, 2013
Marketing is very powerful tool that every business model has to deal with, either a small or giant, tech or non-tech, online retail or offline retail. Until you are not spreading your business name, you’re not doing business. The Brand of the business depends on the effective use of marketing strategies, people shouldn’t know you by your name, but by your business brand. Let’s take a look at various marketing techniques.
1. Direct Marketing - Direct Marketing deals with spreading your business by interacting with customers/business executives, face to face. It can be very effective as you are talking with your direct contact inperson, expressing your feelings and emotions that he/she can get very straight idea about your model. It can even be time consuming process as a single meeting can be minimum of 2 hours.
2. Outbound Marketing - Outbound Marketing is what most of them opts for. It gives an opportunity to cover nice number of audience and getting some of them as your loyal customers. It can be implemented by brochures, pamphlets, newspapers ads, etc. You are forcing end customers to view your ads and may create a feeling to go for it. This is an expensive technique as it requires some of your money power to be invested.
3. Inbound Marketing - Its bit reverse process of the previous one. In this form, you have to let your customers reach you for the need of product, instead you approaching them. This process starts in very slow manner but when expands rapidly, you have created a good brand of your business. It can be implemented by Search Engine Optimization(SEO), word of mouth, desperate customer need, etc. This is very inexpensive technique as you are not investing much in spreading your word, customers themselves are doing on behalf of you.
4. Social Media Marketing - A very niche, booming and effective technique that most of them now-a-days are going for. There is no need to prove the previous line as 95% of World Population are engaged at least 2 hours daily in one of the Social Media Site. It can be implemented via some social platforms like Facebook, Twitter, Pinterest, Linkedin, Google+, etc. This technique can be implemented in both the ways; expensive way where you have pay for ads, or in inexpensive way where you can use the platform with limited resources.
5. Newsletter Marketing - A very old and effective technique that most of them are using as their default marketing strategy. Nothing more has to be done here, simply create a mail database in thousand numbers and start sending them the newsletters covering all the stuffs of your business, product, service, etc. But yes, newsletters requires a very useful information that should attract the end customer to open it, read it and redirect them to your website directly. Newsletters can be represented in informative way, graphical way, hybrid form, etc.
6. Article/Magazine Marketing - Don’t get confused with Outbound and this one, both are logically same but physically different. In this one, you can’t cover a large number of audience as Article/Magazine Subscribers are very few compared to newspapers. But, the customers that you’ll get here would be mostly above middle class and professional & luxuries in nature. The company creditability increases highly as you are making a good relationship with the genuine customers and even the cost of publishing is bit higher.
7. Promotional Marketing - One of the great and effective way to attract the customers to your product/site/business is Promotional Marketing. Everyone knows 85% of customers will see the price first then the actual item, whether its branded good quality item or average one. This technique targets 3P/4P of Marketing, that are, Promotion-Price-People. Promotions are the only thing creating a very cut-throat competition, no matter you are able to make Profit or Loss, but what you get is good number of traffic. This can be done by using discounts, deals, offers, coupons, stock clearance sale, etc.
8. Viral Marketing - This type of marketing relies on the message of a marketer being spread quickly through various social networks in order to increase brand awareness. The name viral marketing stems from the rapid spread of viruses in general. Typically, a viral marketing campaign will not last as long as other marketing efforts, but if a company can come up with a good idea for viral marketing and reach the right people, it will become highly successful in a short amount of time.
9. Mobile Marketing - Even this form is emerging along with Social Media/Internet Marketing techniques. As mobiles(smartphones actually) are very common to see in every individuals hand, marketer is targeting a large number of audience. It can be done on all of the Mobile OS platforms and many manner. Showing ads while playing games, showing related apps while downloading one, direct SMS of your new product, etc. There can be even scenario where user can mostly neglect your ad if it doesn’t suits to his/her requirement, and that’s the reason it has to be done in very effective manner giving at least 10% clicks of the target.
10. TeleMarketing - A very expensive way to show your business/product to end consumer is this form of marketing. This includes TV ads and it requires a lot of financial capability and that’s the reason why only big companies go for it. This technique can’t be adopted by mid-level or start-up firms, in-fact it shouldn’t be adopted. The way of displaying your ads is the main thing to concern here, by hook or by crook, you have to convince your consumers that why your product stands out from others, and its done.
Excerpts – Bruce Jones
July 2nd, 2013
Are you looking for new apps to download for your Android device? Here’s a list of our favorite Android apps for May 2013. You will find everything from gaming to personal finance to apps that will protect your personal data.
1. Fruit Ninja – Gaming
To start, use your finger to swipe through new game and classics, fruits will automatically be thrown up in the air and you will need to slice them as fast as you can. Fruit Ninja me seem like a simple game at first, but the speed picks up and bombs are thrown into the mix. Whatever you do make sure you don’t try to slash through the bomb, otherwise game over! Fruit Ninja is a fun and addictive game. You can download Fruit Ninja from the Google Play Store here.
2. Pulse News – News Info
Back in April, it was announced LinkedIn acquired Pulse mobile-news reading app for $90 million. Pulse News app will take the latest from news sources you add and will present them in a easy-to-ready mobile format. Pulse News is similar to Flipboard, and lets users browse stories by source or subject. It can be customized to your liking, and there’s a search function which allows you to search for your favorite sites. This app makes reading news on the go simple and easy. If you find a story that really caught your attention you can save it by hitting the star in the top right hand corner. You can also share articles through LinkedIn, Facebook, Twitter, email and SMS. You can download Pulse News from the Google Play Store here.
3. Pandora Internet Radio – Entertainment
Pandora is an internet radio app that allows users to create customized stations based on their favorite artist, band, or song. You can also indicate if you like a song, and Pandora will program the station accordingly to your likes. Pandora is a great way to discover new artists and genres. When you register with the app, your profile will be public, unless you decide to make it private. You can download Pandora Internet Radio from the Google Play Store here.
4. Vault-Hide SMS, Pics – Privacy & Security
If you’re looking for an app that will protect your photos, videos, SMS message and call logs, you may want to check out Vault. Vault can hide everything from work-related messages to unflattering selfie pictures you don’t want anyone to get ahold of. Personal data is encrypted and can only be seen if a correct password is typed in. Some other beneficial features of Vault include making private contacts invisible and being able to make Vault icon disappear so no one can see that app exists on your device. You can download Vault-Hide SMS, Pics from the Google Play Store here.
5. Mint.com – Personal Finance
With Mint, you can keep all of your personal finance accounts into one place, so its easy to manage your money while you’re on the go. Track your spending, create budgets, and save more money. If you end up losing your device, your app is passcode protected. You can logon to mint.com and deactivate your device access straight from your profile page.
Download Mint app from the Google Play Store here.
-presented from a research and post by Karen Tumbokon
June 17th, 2013
What is Uniware ?
Uniware is SaaS application for end-to-end management of order fulfillment. It manages online procurement, warehousing, shipping, dropshipping, inventory and returns effectively at one place. Uniware requires no extra investment in hardware and no license to purchase, its pay per use basis. The architecture is very flexible and unlimited scalable as per the growing business model with Secure & Adaptable SSL, API data sharing.
Let’s walk through some major features of Uniware:-
1. Order Fulfillment
• Send order immediately to Uniware through API or upload orders through excel
• Automatically allocate inventory to orders
• Specify category specific fullfilment SLAs
• Prioritize orders based on category SLAs, courier pickup timings
• Generate pick tickets at multiple systems optimized for picker traversal path and bucket size
• Optional sku validation of item at invoicing
• Print invoice in line with taxation rules with CST and VAT preloaded into the system
• Print shipping labels according to the courier specifications and proper routing codes (again preloaded)
• Generate manifest and add packages to manifest on a scan
• View and track complete order history
• Handle partial / complete cancellation or Holding of order till dispatch
2. Alerts As Configured
Dashboards to keep managers updated about warehouse operations and enable them to take needed actions in time. Customized reports on sales, returns etc which can be scheduled on timely basis to track the performance of the company.
•Monitor real time progress of the warehouse operations, picking and fulfillment velocity
•Set SMS/Email alerts on critical orders, low AWBs, inventory expiry
•Schedule daily/weekly digests on sales, inventory, returns
•Notifications on every order status update
•Enables procurement of same SKU from multiple vendors
•Automatic performance based and manual vendor rating system
•Role based access and complete Purchase Order (PO) life cycle management
•Set reordering levels configurable in multiple ways
•One click PO creation against back orders or reorder levels
•Reconcile invoices against GRNs and manage vendor payments
4. Controlling Inventory
•Automatically assign inventory to a location for put-away with manual override
•Store products in unique or multiple locations based on bin/inventory characteristics
•View all receipts or customize views by filtering on selected criteria
•Cross-dock facility for faster fulfillment of on-demand orders
•Inventory serialization (barcoding) support for uniquely identifying items right from sourcing to fulfillment and even returns
5. Shipping Tracking
•Integrated AWB assignment, tracking and COD reconciliation for all your shipping providers
•Supports shipment consolidation from same location to save shipping costs
•Automate shipping provider allocation on historical performance basis
•Configure ship-together and provider allocation rules based on custom item attributes
Time to market is extremely critical in the competitive landscape that exists and therefore Uniware is pre-configured to an extent possible.Uniware has integration time of less than a week.
•Ready plugins for popular shopping platforms like Magento, Prestashop, Shopify and more
•Pre integrated shipping providers
•In built taxation category mappings for easier and faster configuration
•Easy csv upload/insertion APIs for vendors, catalog, SKUs etc
7. Secure & Adaptable
Service Oriented Architecture (SOA) ensures the flexibility needed in today’s environment to keep up with changing business demands. That’s why Uniware inventory, warehouse and shipping solutions are built using SOA framework making it easier to adapt to new requirements without costly and time consuming customization. Easy to use and consistent user experience leading to reduced training time and costs.
•Service Oriented Architectue
•SSL (https) data transfer security
•Horizontally scaling architecture to take up the load of millions of SKUs
•SaaS model, immediately available, no hassles of maintenance, free upgrades…
•Engaging and approachable graphical user interface (GUI)
•Easy APIs/JSON integration for every actions
•Ready plugins for popular shopping cart solution like magento, shopify, prestashop…
June 11th, 2013
Apparently, Facebook “Home” is not to be, not yet at least.
The Android application launched by Facebook to create an FB overlay on the Home screen of the phone was supposed to be the big bet by FB to control the first touchpoint screen for a smartphone user. But due to poor reviews by initial analysts, Facebook is said to be revamping the FB Home application. The device which was supposed to launch this was HTC One and in US, AT&T was to be the exclusive carrier for this. In UK, operator EE and Orange were planning to launch it. The social network is said to be encouraging the carriers to delay the launch to give the firm more time to create a more palatable user experience.
The battle for the phone user is becoming more intense as time goes by. With smartphones overtaking web users globally, it is of paramount importance for tech firms to own the phone customer and drive more and more smartphone traffic to these firms’ offerings, in order to attract ad revenue and other commerce monetizations.
Without a doubt, Facebook social network application remains one of the top apps on all mobile systems including Apple iOS and Android. But Google, Facebook, wireless carriers and other media are jostling for more and more of user attention on phones as well as real estate on the limited phone screen, which are the next evolution of internet cycle.
Facebook released the following statement on Thursday evening via Engadget: “Following customer feedback, Facebook has decided to focus on adding new customization features to Facebook Home over the coming months. While they are working to make a better Facebook Home experience, they have recommended holding off launching the HTC First in the UK, and so we will shortly be contacting those who registered their interest with us to let them know of this decision. Rest assured, we remain committed to bringing our customers the latest mobile experiences, and we will continue to build on our strong relationship with Facebook so as to offer customers new opportunities in the future.”
HTC First aka “Facebook Phone” (Photo: Courtesy / HTC)
After extremely disappointing sales of the HTC First, Facebook will reexamine the Facebook Home before expanding its operating system to more phones in more countries.
Facebook founder Mark Zuckerberg has said he would’ve rebuilt Facebook as a mobile exclusive app if he had the chance, so clearly offering a solid mobile experience means a great deal to Facebook. In this regard, the Facebook phone was a brilliant idea and makes a great deal of sense — like Google and Android, a true Facebook phone would allow Zuckerberg & Co. to have complete control over the user experience and ad strategy. The HTC First was the company’s first attempt at such a device — Facebook would focus on software while HTC would focus on hardware — but with the phone failing so soon after its initial release, Facebook will need to take a long look in the mirror.
Failure of the HTC First may be blamed on Facebook’s decision to make Facebook Home features too accessible to other mobile users on Android and iOS, or maybe Facebook will realize that the Facebook Home features were not that stellar to begin with.
Facebook has fumbled on mobile before, when it launched it’s first mobile site using the mobile browser channel - with poor user feedback on that approach, Facebook later changed course and focused on more cleaner mobile apps, but this was much later in it’s lifecycle; Facebook mobile has a history of bouncing back. The early years of Facebook mobile efforts were limited to working on a common mobile website version of it’s platform addressing multiple platforms like iOS and Android with one approach. It later realized that that approach did not augur well and got into building platform specific Facebook apps, which have been superb hits since.
The last note above take one back to mobile site vs mobile app debate, which continues to simmer in the mobile development world. So far, it seems, the Apps are winning with many firms (eg Financial Times) having switched from a common http://m.xyz-firm.com approach to custom mobile apps for each mobile platform. More on this later in this space.
(with extracts and ideas from International Business Times article dated May 24 by Dave Smith)
May 26th, 2013
After spending these many years in educating oneself, the one and only ultimate goal is to get a Job…! But how to get it and why most of them are not getting it? Is it the recession hindering or competition is tough? All these question’s answers point to one thing- Same Resume Content.
Recession and Competition inversely varies each other, balancing it is bit difficult. The thing that only matters is: How your resume stands different from others? A very simple answer lies in Tech & Skills part. That’s what you have to do, upgrade your Resume with one of these booming tech domains and see the difference. Let company approach you, you don’t have to approach them…..!
1 . Mobile OS – Trend has been changing so dramatically that now you won’t find silly Mobiles in everyone’s pocket, most of them are using Smartphones, Tablets, iPad, etc, and world is pivoting towards it. It’s all about Android, IOS, Windows, Blackberry, etc. The functionality and graphics provided by these OS’s are simply awesome! Learn the tech, develop an App and launch it to the App Store and you are in the market and if you really bombard the market, one of the Mobile developing companies will hire you…..!
2 . E-commerce – Who cares to go to the shops and purchase a thing? Everyone wants to relax at home, view the product on site, compare it, place an order and they’ll deliver to your doorstep. That’s what E-commerce means and its growing and growing day by day. Learn various E-com technologies like, Magento, WordPress, Prestashop, etc,. Develop a basic E-commerce site for yourself and launch it or highlight in your resume about your knowledge or start a service base program with your friends where you can develop an E-commerce website for others.
3 . Social Media Marketing – Everyone is aware with Social Media like Facebook, Twitter, Google+, Linkedin, Pinterest, etc,; Most of them are aware with Marketing like sales, product, etc,; But very few are aware with a thing called Social Media Marketing. This is the field where all companies are going for, Marketing via Social Media in most inexpensive way. Who wants to pay 1000 bucks for advertisement where it can be achieved by 10 bucks. Get familiar with and try implementing instead of surfing it.
4 . Cloud Computing – Cloud is very cutting edge technology in the market and still most of them doesn’t know about it. Amazon, IBM, Eucalyptus, etc., played a major role in Cloud Computing. You want to access a resource from point A to B Cloud will help you, want to download in a faster way Cloud will help you. Still India is yet to flood with this concept as it is quite expensive and rare thing to implement and execute., but future is in and within Cloud.
5 . Big Data– The name itself suggests what it is, it’s like Big Dam storing trillions gallons of water….! On any field or domain, one has to deal with data storage and manipulation and it never decreases. Big Data has already influenced the market on very large scale. Facebook, Google, EMC and most of them are on this side of Big Data. Master in it and go for it.
May 21st, 2013
(excerpted from Harvard Business Review article on Advertising Analytics dated March 2012)
HBR has an interesting article on Analytics 2.0 which is driving advertisers and brands to fine-tune their effort allocations to the various media mix. Presented below is the crux of the article by the author Wes Nichols, CEO of MarketShare, an Analytics firm in LA, USA.
Until now, the advertisers are measuring ROI using swim lane tactics, which means that media spend on one channel is measured for ROI independently – it has to do with revenue attribution due to direct impact of that media channel advertising. In reality, the media is more complex, the various media have impact on each other which causes complex mixed media effect on consumer purchase decisions. Eg a TV spot on a Toyota Camry car may lead a user to dish out her smartphone to google search the Camry. The Google search shows a sponsored ad by a nearby Toyota dealer as well as it may lead the user to a sponsored YouTube video ad which plays the motion picture of the car ad. The user is thinking about Camry but purchase decision is still forthcoming. Later when the same person is driving down the highway, she notices the billboard advertising the Camry. She remembers the sponsored dealer ad and decides to drive by that dealer. This concludes in a purchase decision to buy the Camry.
In the above scenario, each media channel has an impact on each other and it is hard to attribute revenue to one or more media channels directly. As a result, firms do not know how much to spend on various media channels and how these channels cross-impact each other.
Such analysis of one data campaign revealed that swim-lane measurement grossly underestimated the revenues attributable to social-media marketing and display advertising while overestimating PR and paid-search revenue. For firms like Ford, which have a $1 billion advertising budget each year, such analysis is crucial to derive maximum bang for the advertising dollars.
Statistical models that reveal the effect of advertising on consumer behavior and business results must account for hundreds of variables related to market conditions, marketing actions, and competitive activities. A software analytics engine uses those models to attribute each variable’s effect accurately, to optimize the marketing mix, and to guide spending allocation. Data on consumer response and business outcomes feed back into the engine, allowing marketers to fine-tune their cross-media spending in real time.
Analytics 2.0 requires that advertisers assign an elasticity factor between each impacting media – eg Paid search will have an elasticity factor due to TV ad spot and also from other media channels. So each media format is assigned an elasticity factor from every other factor that is likely to impact it, this is referred to as Assist factor. Such factors can include non-media factors like weather, competitive advertising, unemployment rates and like. This leads to a complex cross-dependency scenario across a wide gamut of factors. From here, the advertiser has to assign revenue attribution to each media factor followed by optimization and finally budget allocation. Optimization involves war gaming various scenarios across the factors in question to arrive at optimum marketing conclusions. Finally, this leads to re-balancing budget allocation to achieve the maximum efficiency marketing scenarios.
Factors -> Attribution -> Optimization -> Allocation-> Consumer Response -> Business Outcomes …….. -> Attribution again
The Business Outcomes influence the Attribution in real time so it is a constant feedback loop.
HBR gives the case study of Electronic Arts (EA) which used the above cycle of Attribution, Optimization and Allocation to increase it’s ad spend efficiency dramatically for the launch of it’s new Battlefield 3 online game. It seems that EA was placing heavy emphasis on TV spot ads for its game launches but these were having only a marginal impact on the success of games sales. An Analytics study led EA to shift advertising dollars to online and paid search, and the game launch revenues improved remarkably for EA.
For the full HBR arcticle, click here.
May 20th, 2013
By – Prof. Nandini Vaidyanathan – Founder & Mentor @ Carma Venture Pvt Ltd. Date – 10th May, 2013
Prof. Nandini has worked for many MNC’s for almost 20 years, within many domains and fields, she’s Board of several companies, Mentor & Promoter of Startup(forstartups.blogspot.com), India’s leading Strategist in management. She has even been a Teaching Entrepreneur in US, UK Premier Business School, Princeton, IIM-B, etc, etc, etc. If I still continue to introduce her, then I think I’ll just end up with her intro itself.
The webinar was awesome, never got so many meaningful and important things to learn just within 2 hours. Prof. Nandini was clear and sound, very straight to her points that were to be conveyed to the audience. So let’s get to her talks about Business Development Plan, I’ll narrate point wise:-
What is a Business Plan ?
“A Business Plan is nothing but your Wishlist that you want within specified period of time, anyhow. Make sure Entrepreneurship and Wishlist goes hand-in-hand.”
- If you are a new Entrepreneur, forget everything else and first approach to get Mentorship from a good Mentor, without which you may have very less chance to survive for long.
- Don’t ever write a plan just because you’re very eager or desperate to start a business or to attract an investor. Write a plan to capture an vision and fulfill your Wishlist.
- Don’t do copy-paste in your business plan, don’t come with a plan and say currently this is there in the market and we can do the same in an efficient way, never think of it. Your plan has a product, if someone sells this product to you then how much you’ll spend from your pocket? The more the price figure comes, the stronger your plan is…!
- Don’t make a business plan that has monopoly kind of business, research for the competitors and make a plan that defers from them. No one can win without competitors, if you don’t have competitors what you’ll compare & with whom you’ll compare, they’re the one who’ll point out your defects. Eg- Imagine everyone in the world with Mercedes Benz…!
- Don’t ask or refer your business plan to any of your friends, family members or relatives, they’ll support you because they wanna see you happy, they’ll speak what you want to hear. Eg. Hitler asked his Army Chief during war, “What’s our status?”. Chief:”We are going to win”. Ultimately Germany got defeated. Hitler:”Why you lied to me?”. Chief:”That’s the thing you always wanted to heat from us…!”
- Equity is Entrepreneur’s Blood, don’t plan to donate it at very early stage. Don’t let anyone rule over you, your team and your org. at an early stage. If you still need to raise funding at early stage, don’t look for Venture Capitalist, look Strategic investor. Never divide your Equity in 1:1, keep at least 51:49 ratio to make good future decisions in an easier way.
- Don’t consider that market is easy to cover with your awesome product, you are still a Starfish and Big Whales are already roaming there in the market. Have a point in your business plan that how your product will change, influence and grow the market. Get a Differentiator in your plan.
- Differentiator in plan can’t always be only in ideas, it can be in Execution too. Eg. Lays Vs. Bingo. Lays introduces itself in market flavours by flavours whereas Bingo introduced by 12 various flavours. They say every Bingo retailer in the market will have at least 12 packets…! Whatever Differentiator you have, it should be very unique and innovative.
- Market research is very important to get boom into the market. Eg. Kurkure researched that most of them want snacks while working on computers, so they introduced Kurkure in Cyber Cafe’s initially and boomed the market.
- Have your idea feasible, scalable and profitable. You should plan for innovation but not at that extent that it becomes hard to implement. It should be profitable, it you can’t take out profit from your idea, then just generate it. If one is not interested in generating the profit, then tell him to book his/her domain as .org instead of any other.
- During hiring process decide you want, a cat or a camel, because later you can’t expect them to change as per your expectation. Even if you get your cat, decide you want which specific cat- big, small, fat,etc. If you can groom your employee, you’re intelligent Entrepreneur, if you can’t (most of them) then deal with them.
- Discuss your plan with every employee, you know the plan very well because its your baby, but do your team know the plan? Does your team know what are your dreams and for what they are working? If you make your employees to work for the salary, they won’t deliver you your expectations, because they don’t know actually.
- Use simple English to communicate, simplify the high-tech and jargon words so that every one gets your idea thoroughly.
- Don’t chose Co-founders like tomatoes and potatoes. Every Co-founder should have complementary skill set. All should want same thing from the company. All should share same value.
- Best point to raise fund is when you don’t need it, that will make you stand above the VC’s. Raise funds only and as per your requirement, if you go for more than your requirement, you may lose control over your expenditure.
Elements Of Business Plan:-
- Have a snapshot summary; its easy to read index page than 1000 pages of a novel.
- Product and Customer must be focused.
- Hire a team that is die-hard, self-motivated and that can fly your ship.
- Market & Competitors. Your every competitor has a drawback, make it your strongest point.
- Good monetisation model excluding ads.
- Don’t have just one innovation, have a whole pipeline, a series of innovations.
- Budget planning for at least 3 years. Revenue and Expenses must have assumptions.
- Milestones- break your plan/wishlist into milestones.
- Monthly Profit & Loss Sheet should be there.
- Differentiate between Risks & Opportunities.
- Plan your Elevator Pitch. Say you are in elevator with Warren Buffet and you got just 30 secs to impress him so that he’ll give you a check in 30 secs, what you’ll say?
- Build Evangelical Team that will bring Evangelical Customers.
- Check where you stand . Give customer what he wants -> Colgate gave. Give customer more than he wants -> Google gave. Give customer which he never dreamed of -> Facebook gave.
So these were the great advices and suggestion by Prof. Nandini represented here in front of you. Hope you found it interesting and learned at least one point to follow your journey of Entrepreneurship…!
May 14th, 2013