Summary of One Article from Wall Street Journal Essay
In the business world of today, series of economic activities and businesses are conducted through various means that significantly affect these businesses. Advertisement is one of the means of conducting businesses in today’s business environment. Companies try to attract old and new customer in different means using advertisement. The internet is an example of the means through which customers could be attracted to a firm, industry or company. Since, the internet provides a forum where, business executives, retailers, customer and manufacturers could conduct business like buying and selling.
In addition, since millions of people use the internet daily these companies could they advantage of this by reaching them. This issue relates to a current article from wall street journal where marketers reach out to their loyal customers in new ways. In the article, marketers reach out to their loyal customers using a new approach. Companies are reaching out to their loyal customers through various new means than the use of the traditional approach. This write up will give a detail summary about this article and will be related to the concept of marketing accordingly.
From the article, there was evidence that companies are trying to initiate new means of getting to their loyal customers and attracting new ones. In the article companies like Gap, Sear Holding and J. C. Penny are trying to exploit new statistical models and new technologies to send product information to their numerous loyal customers and keeping them. Since, it was more expensive to get new customers than keeping old ones. Therefore, companies try to look for other ways of reducing cost used in the business in other to increase profit.
In addition, the retail industries, which are the most concerned device ways to increasing their sales at this approaching holiday season. Moreover, companies and marketers have not completely neglected the television advertisements rather, they are more interested in exploiting news ways of keeping their old customers and attracting new ones in other to reduce their cost and increase profits. For instance, Sears have developed different means of getting to their customers directly.
They try to use the tie-in-sale method of meeting customer’s need. Here, each good bought by any customer comes with other benefits that could attract the customer to the product. In the process, they will be able to retain their loyal and valued customers. In addition, Search Ignite a marketing firm recently reported that retail firms have increased their search-advertisement spending this year. It claimed that there was 33% increase in USA business firms’ search-advertisement in the first quarter of the year.
Finally, companies are trying to pursue search- advertisement because they found that this technology could help track more information about their customers. The concept marketing relates to this issue in a way. Marketing refers to the way business firms use different means of selling or buying goods. It also refers to the ways goods and services can be promoted through various means including branding, pricing, advertisement and different channels of distribution. The article relates to the issue of marketing. In addition, marketing also relates to the way businesses evolve (are organized).
This shows the reason why retail firms currently pursue search-advertisement to that of traditional television advert. They use marketing in way when they organize and promote their businesses. A good example is the technology now used by Sears to monitor the purchasing activities of their old customers in other to fast track ways of keeping them. This article relates to marketing. For instance, the Google Adword and Adsense a technology by Google, which is used to advertise and make money online relates to marketing.
On Google Adwords and Adsense, companies could advertised their product and take the advantage of the over 500 million that access it daily. If we relate this process to the article then, we can claim that advertisement is one of the methods retail firms use to attract new and old customers. Given that through advertisement, retail firms could affect their sales, purchases and the way their business operates. Therefore, we could claim that this article relates to marketing because, advertisement is an aspect of marketing.
In addition, marketing is an everyday discussion because money exchange hands every day and business organizations make profit or loss on a daily bases. When retail firms pursue these new ways of attracting their old and new customers, then they could meet the desired objectives of making excess profit. Every company, business firm, retail firm and industry poses some forms of threat and opportunities that determines their position in the market. Can we then conclude that these retail firms in the market would face new opportunities and threats due to these new ways of advertisement?
Threats and opportunity are parts of the structures that affect any business organization in the business environment. These structures are part of SWOT (strength, weakness, opportunities and threat) analysis of any business environment. Businesses in the market will be faced with threats and opportunities. Since, these new ways of advertisement is new to the business, flaws on the adoption could evolve. Business firm may face this threat from other firms in the market. In addition, firms might not be able to use these methods better than other firms would in the market.
New business firms may also face the threat of an innovative method of advertisement developed by already established firms in the market. Innovative product could be a form of opportunity to business in the market. In this way, firms could introduced new product into the market that could be preferred by most customers and which require no advertisement at all. Since, every business organizations pursue competitive advantage, firms will always try to control large percentage of the market share. Competitive advantage refers to gaining cost advantage and product differentiation.
Therefore, business firm and industry may try to introduce innovative product that is preferred by people and tries to produce them at a reduced cost than other firm in the market. All this can only be possible when people are available to purchase these goods. Therefore, this could be a way of increasing profit made by firms in the market, in view of the fact that cost of advertisement is reduced. Business firm and retail firms could face other threats and opportunities in the market, but these might manifest in the long-run. Since, in business some unforeseen circumstances could affect structure of business in the long-run.
In conclusion, business firms are trying to introduce new means of meeting their customer’s needs in other to increase their firms proceed during these holiday season. Most firms now use the method of search-advertisement method of reaching their old and new customers.
Reference: Steel E. , (2008). Marketers Reach Out to Loyal Customers: As Holidays Near, Retailers Tap Statistical Models, Relying More on Targeted Ads than on Shotgun Approach. Business: Media and Marketing. The Wall Street Journal. http://online. wsj. com/article/SB122766322705958805. html? mod=wsjcrmain
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