In class this evening, we had a presenter Randall Coe, VP Marketing for Bosch. I just have to say that I couldn't relate his presentation and talking points to the project we are working on for this course in 798 nor did I feel I could relate it for use in my business model.
It was evident that Mr. Coe knew his stuff. He was well versed in the intricacies of courting the retailer, knowing where is target market shopped and their behavior.
My burning question is: How do his "big idea" strategies relate to me. I'm still processeing the information so perhaps after I've had more time to digest the presentation, I will be able to take more from his presentation.
I want to be sure that I'm clearly understood when I say I couldn't relate. Ididn't mean the information wasn't valuable. I'm sure that other students were able to take away valuable information that will help them in their business. I simply say that I could not relate his ideas and philosophies to that of the small business owner who is...me.
A couple of things I did garner from the discussion were basic philosophies that are in practice within Bosch.
1. Growth profit fuels innovation- I agree with this because without making money, a red hole is created wherein your activity at the bank shows a steady outflowing of cash vs influx. There is also less or no money to use to go forward with the vision of the company.
2. Segments are about behavior- This is also true. When you identify a segment, especially the desired segment, you, as a business owner must go out of your way to learn about the behavior practiced that will bring about your (the company) desired effect...conversion as well as repeat and loyal spending customers.
3. How to maintain price integrity- Now this is a concept I believe I'm struggling with for some reason. In my opinion, maintaining price integrity is a fine line when you have to consider your profit margin. Sure you want your customer to feel they are getting great value for their money but, at the same time, you want them to value your product as a product that is of the finest quality and sometimes you have to pay more to get the best quality. I suspect this may be of interest to "niche" retailers. For example, what about jewelry retailers-specifically, diamond retailers. If I, as the consumer, go to a diamond retailer and find a diamond that is 1/2 or even 1/3 the price that it is listed with another retailer who is considered to be a quality retailer, I, as the consumer will immediately begin to wonder, "what's wrong with this diamond? Is it a real diamond, is it flawed more than the jeweler will admit",and so on and so forth. So, that is why I say maintaining price integrity is a fine line-for the previously stated reason.
Do you all agree with me? I'm curious.
I have a wonderful article I would like to share. I will post it shortly. Thank you for stopping by!
http://feeds.feedburner.com/~r/smallbusinessbranding/~3/417695775/
Rhonda
3 comments:
Here are my thoughts:
1. Profit fueling innovation is more of a desire than neccessity. Innovation is expensive, for sure, but its benefits are long term (profits tend to be short term gains). I wonder if assumptions like this cause Xerox to sell off its most valuable (and costly) division: PARC.
3. If you do a little reading on Price Elasticity, you might find a little more solid understanding of your ideas. You are totally right that value works differently for luxury goods (diamonds) vs other goods. This article on Luxury goods is decent: http://en.wikipedia.org/wiki/Luxury_good
From the looks of your comment, I may need to clarify myself...again.
1. The points that I spoke about were gleaned from a presentation that I'd heard in my interactive marketing course that very evening so, it's not that I need to "do a little reading on price elasticity", I was merely repeating what had been said by the company representative from Bosch who has also been in marketing for several years now. I understand the idea behind Price Elasticity pretty well since I've been studying the topic for several years now. I still stand behind my belief that a luxury good is determined by the consumer. What is a luxury to a consumer who makes $30k a year will most probably be something that a person who makes 3 times as much takes for granted.
I personally wouldn't call profits that are made on a regular basis "short term"-especially from a company that survives and grows and innovates based on profits.
I also wanted to point out that I said, "growth profit fuels innovation" not "profit fuels innovation", trust me, there's a huge difference.
I do appreciate your input though. you bring up interesting topics for continued discussion.
This article is also decent, accenture.com/Global/.../By_Issue/Y2007/SustainProfitableGrowth.htm
Rhonda,
You have provided a valuable summary and I like the way you are engaging in a discussion with your audience.
Innovation is a vital part of marketing. Innovation involves being on the leading edge - a creative process of discovery and then bringing that new product to market. My view is that companies that don't innovate don't market.
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