Communication Computing

How Computers Affect Communication

Communication – with the current rate of technological improvement, people now have many ways to relate with other. We eventually modify how we form our relationships and come up with more diverse methods of interacting. However, there are strength and weakness as well as drawbacks regarding on which methods we use.

Computers have made a big impact on relationships. The invention of electronic devices such as mobile phones has simplified the way people get into contact with each other (Sara, 2004). Also coming from social networks has made a diversification in communication. With a computer, people can chat with family and friend’s members over the internet. Computers are bringing the world together via communication.

This assignment will study the effects of computers on communication in day to day lives.

Focus questions:

How has the invention of the computer affected communication?

What are the positive and negative impacts of computers on communication?

What are services offered by the computer during communication?

Description

Effects of computers intervention on communication

The invention of the computer has had revolutionary effects on communication (Sara, Jane & Timothy, 2004). What would take years to achieve a century ago can now be accomplished within an hour thanks to the computer. However, this invention has not only had positive impacts on communication; it has also had many weaknesses of communication like face-to-face communication. Communication is not only associated with the act of sending and receiving information. There are many other aspects such as taking non-trivial actions on the information, reacting to the demands of the information and giving feedback.

Computers affect communication, both positively and negatively (Sara, Jane & Timothy, 2004). There are various aspects of modern day communication that would not be achieved in old days since there were no computers. However, there are other vital aspects of traditional communication that have been lost in modern days due to the use of computers in communication (Gordon, 2002). The relationship between computer and communication can be analyzed with a focus on the various effects computers pose on communication. Computers can either aid or frustrate communication between people. Positive impacts of computers in communication describe ways in which computers aid communication. The negative implications of computers on communication using computers describe ways in which computers frustrate communication efforts. These impacts can be analyzed by comparing past day communication with present day communication.

Positive effects of computers on communication

Technological improvement has a great impact on the societal communication methods particular with its improvement in the last centuries (Christina, 2006). From the coming up of telegraph together with telephones to the advancement of internet, technology provided us with a tool to express our feelings and opinions to a wider number of recipients.

Keeping in touch/ long distance communication

Telegrams are quicker than letters; telephone calls, also, are speedier than telegrams, and additionally less demanding and more charming, since they require no go-between and permit clients to hear one another’s voice. Phones make this one stride further, permitting individuals to call and talk with one another regardless of their location. Online communication of various types is the most productive yet, with email being a close quick form of the paper letter; webcams, combined with communication programs, for example, Skype, Google Video Chat, make it conceivable to see the individual you are talking with as opposed to hearing his voice simply.

Doing Business

The same computers that have simplified and enhanced individual communication have additionally had the same valuable consequences for business. Communication between partners is close prompt whether they are a few rooms or a few nations separated (Sundar, 2014). For example, video conferencing permits organizations to have specialists scattered all over the world while yet hold productive gatherings and talks; business systems administration is made simpler by online networking and online systems composed particularly for that reason, for example, LinkedIn. Maybe above all, organizations can extend beyond their nearby market and pick up a more extensive client base basically by keeping up dynamic online vicinity.

Overcoming Disabilities

The computer had both enhanced communications for crippled individuals and made it conceivable where it wasn’t (Gordon, 2002). Portable amplifiers support hence becoming aware of mostly hard of hearing individuals, making it less demanding to comprehend discourse, while cochlear inserts restore hearing to the deaf. Discourse producing gadgets give individuals with extreme discourse hindrances an approach to communicating: maybe the most acclaimed client of such a gadget is researcher Stephen Hawking. Further advances in innovation may bring about useful cerebrum computers interface frameworks, restoring the capacity to impart to individuals who have lost it completely, for example, sufferers of the secured disorder.

Reaching a Wider Audience

As individuals’ capacity to communicate enhances, the reach of their messages enlarges (Gordon, 2002). This can be particularly essential in politics campaigns and activism. For example, photographs and video recorded secretly through a phone can be rapidly and effortlessly shared online through sites, for example, YouTube, making it harder for onerous administrations to keep control; social media, for example, Facebook and Twitter can be utilized to sort out and arrange gatherings and challenges. The Egyptian revolution of 2011-2012 was impelled significantly by online networking.

An individual turns out to be more skilled to take a decision because of the computer because the choice is given by the computers on time to all the data required to be taken. Therefore, any people or establishments get achievement quick.

The individual working at the administrative level turns out to be less subject to low-level staff like representatives and bookkeepers (Christina, 2006). This enhances their working patterns and effectiveness, which advantage the association and eventually influences the general public.

In like manner life Likewise, an individual gets profited with computers innovation. Whenever airplane terminals, healing centers, banks, departmental stores have been electronic, individuals get snappy administration because of the computers framework.

Negative Effects of Computers on Communication

Computers have changed the working environment and society as a whole. Individuals and associations have gotten to be reliant on computers to connect them to colleagues, merchants, clients and data (Roundtable., 1999). Computers are utilized to track timetables, streamline data and give required information. In spite of the fact that computers have given laborers innumerable devices to business and simpler access to data close-by or abroad, there are negative impacts. These incorporate more than the clearly feared framework disappointments and digital violations.

Communication Breakdowns

Due to the commonness of computers in the work environment, email is presently a typical method of professional’s communication. This has brought on a plenty of miscommunication issues. Numerous employees lack appropriate writing skills and can accordingly battle with effectively conveyance of their messages. Yet, even the most-gifted author can in any case experience difficulty with passing of tone in electronic messages. Along these lines, without the utilization of articulation and non-verbal communication, messages implied as neutral or even complimentary can be translated as rude or critical. To add to this, numerous specialists are so reliant on email that they have not effectively manufactured a positive establishment relationship by means of exposure or telephone calls.

Anonymity

One of the principle issues with computers interceded communication originates from an absence of accountability with clients (Jungwan Hong, 2014). Individuals can speak to themselves as whatever they need on Internet discussions or informal communities, and this makes communication issues in both headings. A client may contort who he is by not giving precise insights about himself, and this absence of genuineness influences how that individual is seen. The shroud of obscurity permits a client to possibly encroach upon socially acknowledged practices like resistance or respectfulness.

Misinterpretation

The way that most communication is occurring on computers comes as content can really be a negative as far as our capacity to comprehend things clearly. Indeed, even with email (Roundtable., 1999), it is workable for data to be confused or the feeling of an announcement to be missed. Saying “you rock” to somebody in an email message, for example, could be utilized to truly hand-off appreciation. Then again, it could demonstrate a negative sentiment somebody being placed in an intense position. The setting pieces of information that a man gives their non-verbal communication and manner of speaking are lost in this situation. Clients get around some of this disarray by utilizing emoticons – console characters that serve as a shorthand for temperament and feeling – however a lot of nuance can be missed without perceiving how somebody responds with their non-verbal communication and voice.

Dependency

Society’s reliance on computers for communication is likewise a risk amusement, as outside powers can avert communication in an assortment of ways (Christina, 2006). Quakes, surges and sea tempests have brought on different log jams and stoppages of Internet availability for individuals everywhere throughout the world. Moreover, dependence on interpersonal organizations and email can have the unintended result of opening a man up to recognize burglary endeavors and email tricks. Indeed, even the outside power of political agitation can debilitate a client’s capacity to impart, as the 2011 exhibitions in Cairo and Libya brought about government shutdowns of the Internet, radically abridging every nation’s capacity to convey, both broadly and globally

Privacy

Communicating by means of computers can help individuals connect across large geographical crevices and access remote data, however doing as such may open up a man’s privacy more than he may need. With an in-individual meeting or telephone discussion, there is a relative affirmation that subtle elements of those sharing will stay private. On the other hand, with email, content informing or message sheets, there is a record of what individuals say (Christina, 2006). Data is not simply tossed out into the air like discourse, however it, put away as a lasting record. There is an inalienable risk when outsiders can get to these online “discussions.” Similarly, interpersonal organizations and other Internet-based specialized apparatuses are defenseless against protection break, as clients regularly participate in these exercises on open systems; leaving individual data, conceivably, out in the open.

Computers complicate conflict resolution mechanisms in communication: Multiple transfers of information, the increment of anonymity and fast flow of information makes conflict resolution in organizations extremely complex (Christina, 2006). With computers, it has been extremely hard to control access to information among various, unintended groups such as children, junior staff, political opponents, among others (Christina, 2006).

Computers have affected communication in various ways. There is some important difference between modern communication and the old communication. The old day communication was characterized by aspects such as slow movement of information, heavy expenses, ineffective transfer of information and limitations on the amount of transferable information (Sundar, 2014). On the other hand, for the modern communication, it is fast, less expensive, highly efficient, and clear. However, the modern communication without computer is not possible independently functioning very well.

Services Offered By Computer in Communication

The internet is a popular tool for gaining access to information, enlarging commercial works and communication with each other. Studies show that the dominant use of net in different houses is used for a person to person communication. Email on time message is sending, availability of chat rooms and support system sites have changed the way people pass information to others through the use of computers.

Computers allow users to talk to each other via a connected network and social sites (Sara, 2004). Computers also have the capability to connect different users to the internet through phones lines or cabled connections enabling users to share data and information e.g. one can use computers to send a message to other computers through a connected network globally. Data transfer and messaging as a useful services provided by computers in communication globally.

Discussion

Just around a century ago, a substantial number of developments occurred during the first industrial transformation. Within a short time period, numerous nations got to be industrialized. Presently we are in the first place of another technological insurgency (Gordon, 2002). The significant reason for the second technological insurgency is the creation of Computers. Computer is the most flexible machine people have ever made. It assumes an imperative part in our regular life. It covers gigantic region of utilization including instruction, commercial ventures, government, prescription, and exploratory examination, law and even music and expressions.

Over the next decade, national and international computers networks will be generated and connected together (Asthmatics, 2010). Some of these computer networks will be specialized acting as a links between national informational stores and data warehouses where some will give general computing capabilities.

Computers information store on every aspect of the work performed by the society will be generated with a high frequency and with wider coverage and be accessible to a different level to groups and individuals with different qualifications.

The computer networks will be more accessible at a cost low to the whole public and to all groups with small resource. For example, the cost of renting a computer terminal in London currently is around 72 dollars for a single installation per month without adding the cost per hour in which the terminal is used (Jungwan Hong, 2014). Such cost will tend to reduce to a point where a terminal is normal equipment in an office.

There will be an increase in essence at which communicate directly to one another globally. The use of video chats will enlarge while facilitating the effects of individual in many areas over a long period of time.

Conclusion

Computers have positive and negative effects on communication. Weighing the side of positive effects and negative effects, there is clear evidence that computers do more good to communication than harm (Asthmatics, 2010). Computers have a very important role in the facilitation of communication. People should utilize computers to expand the circle of friends and relations globally but also we should learn how to control and treasure our relations and use of computers in order not to let things that can be regretted occur.

References

Asthmatics, G. (2010). The revolution of communication and its effect on our life. Pavaresia. Academics International Scientific Journal, 100-108.

Christina, K. (2006). The Impact of Information and Communication Technologies on Informal Scholarly Scientific Communication: A Literature Review. Maryland: University of Maryland Press.

Gordon, B. (2002). Computers in Communication. UK: McGraw-Hill International Electronic Version.

Jungwan Hong, S. B. (2018). Usability Analysis of Touch Screen for Ground Operators. Journal of Computer and Communications, 1-20.

Roundtable., N. R. (1999). Impact of Advances in Computing and Communications Technologies on Chemical Science and Technology. Washington: National Academies Press.

Sara, K. J. (2004). Social Psychological aspects of Computer Mediated Communication. Pittsburgh: Carnegie Mellon University.

Sundar, S. S. (2014). Communication theory. Journal of Computer-Mediated Communication, 85.

Click Here For Computing Dissertations

Direct Marketing Dissertation

Direct Marketing

Direct marketing is a combination of methods that facilitates marketing of goods and services by an organization directly to customers (business-to-customers or B2C). It is an active method of marketing that takes the item and services to probable customers instead of sitting tight for them to go to a store or other areas e of access. It is a type of ‘non-stop’ shopping and is once in a while alluded to as ‘exactness marketing’ or ‘one on one’ advertising. As opposed to the advertising firm conveying a general correspondence or sales message to a substantial gathering of potential customers, regardless of the fact that these constitute a very much characterized market area, direct marketing tends to target particular people or households (Dobkin, 2007). In a business-to-business (B2B) setting this would be an individual or a particular association or firm.

Direct marketing is a direct communication to a customer that is designed to create a feedback in the form of a direct request, a demand for more information or a visit the business places to buy a specific goods or services. It put emphasis on face to face marketing communication. It can also be said to be a process that is an interactive system of promotion that uses one or more promotion media to influence the response of the customer and transaction at any location. Its goal is the provision of information to customers about their taste and needs.

Direct marketing is not simply concerned with marketing correspondences. It is likewise concerned with the movement of goods and services. In utilizing direct marketing, the firm is settling on a decision to remove the utilization of marketing agents and offer the goods and services direct to consumers (Ellsworth, 2009). This has implications for both channels of circulation and logistical choices.

Direct has many forms. It is one of the quickest developing areas of advertising and is being accelerated by specialized advances, especially in the field of computer innovation (Ellsworth, 2009). Scholars and experts have brought up direct marketing with excitement and have driven the subject forward both mentally and for all intents and purposes.

Growth of Direct Marketing

Direct marketing is not new since many organizations have sold items direct to general society for a considerable length of time e.g. Kleeneze and Avon, who have sold items door to door for a long time. (Ellsworth, 2007) Regular postal mail through the post and mail request catalogs have been used for quite a while and all are types of direct marketing. Direct marketing started in the mid-1900s, and the Direct Marketing Association (DMA) was built up in the USA in the year 1917. Direct marketing turned into an imperative power in the UK in the 1950s, however at this phase of its advancement it was concerned with post office based mail, mail request and door to individual door offering. Today the extent of direct marketing has extended significantly to a great extent because of the utilization of the phone and specifically the utilization of the Internet (Ellsworth, 2009). Direct marketing incorporates all advertising interchanges components that permit an association to correspond directly with a prospect. This incorporates standard mail, phone advertising, direct feedback promotion, door to individual door offering and the Internet.

Party arrangement organizations have been offering items direct to consumers in individuals’ homes for a long time. The phone has been utilized for B2B deals for quite a while especially for the recovery of “scheduled” requests and for making deals arrangements. It is presently being utilized progressively as a part of local direct advertising programs regularly to ‘follow up’ a posted customized mail shot. Motoring associations, for example, the RAC and AA in the UK, have utilized direct individual offering for a considerable length of time to offer membership of their organization and today utilize post office based mail broadly to keep individuals educated about the item and the benefit of the service (Ellsworth, 2009). Nonetheless, as it has already been said, direct marketing has developed with the advances in computer innovation. The utilization of computers to store, recover and control client data has revolutionized the way direct marketing firms work. Direct advertising firms can make utilization of the Internet and systems databases which permits them to get to information “warehouses” and gives them the capacity to sort and total or “wire” information to build its worth as a marketing asset.

Objectives of Direct Marketing

Much of direct marketing actions are expected to subject to sales. However, in a few circumstances a Direct sale may be impossible or inappropriate. In such cases some other type of quantifiable responses may be utilized. For instance, a direct mail campaign and a phone marketing system may be utilized as a part of the engineering business to welcome and urge purchasers to go to a machine tool display. A flyer drop for double glazing may contain a free telephone number for the prospect to ask for a leaflet or evaluation. The outcome may not be a sale, but rather some particular, quantifiable activity that will ideally add to an extreme sale. In spite of the fact that a sale may not be the quick target of a direct marketing effort, some direct responses for the benefit of the beneficiary of the message will be (Ellsworth, 2009). Hence, this will add to the possible sale. Thus, direct marketing is not the same as direct sales. It may be utilized to keep customers educated of new item improvements or to send them particular discount offers.

Strategic Role of Direct Marketing

Direct Marketing ought not to be utilized as a simple strategic Marketing Communications device, yet should be incorporated with whatever remains of the communication blend. All promoting communication components interface to some degree. (Ellsworth, 2007) Direct Marketing is prone to frame a noteworthy piece of Communication Strategy of numerous organizations and not just shape a sort of strategic adjunct. Different types of communication are prone to be utilized as a part of conjunction with Direct Marketing Programs regardless of the fact that these are just broad corporate promoting programs. Numerous organizations utilize direct marketing overwhelmingly, however not to the rejection of other communication systems. Direct marketing is regularly utilized as a major aspect of incorporated customer relationship management (CRM) programs. CRM projects are by their tendency long haul and key in nature.

Phases of Direct Marketing

The following are the steps that need to be undertaken when performing a direct marketing to customers (Ellsworth, 2009):

The imaginative stage and design stage, where the plan to market is developed, and relevant channels of communication are selected.
Data collection, where both inner information, for example, customer records and outside information from a database of the organization or rundown broker is gathered in planning for the stage three in the project
Database organization, where data is ‘mined’, ‘melded’, collected or disaggregated, improved and institutionalized for use in the system
Database examination, or satisfactory tuning the database that further spotlights on an ideal target market
Implementation and completion where client request and orders are followed up on and data on response rates are gathered from definite post program examination
Response examination where the aftereffects of the campaign are inspected for viability before the cycle starts once more

Direct Marketing Media

While numerous individuals partner direct marketing with direct mail, direct mail is one of a few promoting media used by direct marketers. Other major direct advertising media incorporate the phone, magazines, daily papers, TV, and radio. New innovative improvements are giving direct advertisers an extended scope of decisions from video cassettes to home-shopping systems, interactive TV as well as the Internet.

Direct mail

Direct mail is the most vigorously utilized direct advertising medium and the one most direct advertisers learn first. Direct mail has been utilized to offer a wide assortment of products and administrations to buyers and additional organizations, and it keeps on developing in spite of postage increments. Direct mail offers a few points of interest over other media, including selectivity, personalization, adaptability, and test-ability. It permits organizations to target people with known buy histories or specific psychographic or demographic attributes that match the advertiser’s customer profile. Direct mail can be focused on a particular geographic territory given postal districts or other geographic variables. (Ellsworth, 2009) Personalization in the Direct mail means not just addressing the envelope to a man or family by name, additionally maybe including the beneficiary’s name inside the envelope.

Direct mail bundles come in all shapes and sizes, making it a standout among the most adaptable of the direct advertising media. A standard regular postal mail bundle incorporates an envelope, a letter, a handout, and a response gadget. The envelope’s occupation is to inspire the beneficiary to open the package. Despite the volume of mail, a man gets, the envelope must separate itself from other mail by its size, appearance, and any duplicate that may be composed on it (Ellsworth, 2007). The letter is a direct mail advertisement and gives the chance to address the intrigues and worries of the beneficiary straightforwardly. The letter normally spells out the advantages of the offer in the subtle element. While the letter informs the beneficiary concerning the advantages of the offer, the pamphlet shows them. Delineated pamphlets are utilized to offer administrations and, also, items. At last, the bundle must incorporate a response gadget, for example, an answer business card, that the beneficiary can send back. Response rates are for the most part higher when the response gadget is partitioned from, (Ellsworth, 2009) instead of a portion of, the pamphlet or letter. Without toll numbers are regularly conspicuously shown to permit the beneficiary to respond using the phone.

Direct mail is the most effectively tried publicizing medium. Each variable in fruitful direct advertising—the right offer, the correct individual, the right configuration, and the right timing—can be tried in standard mail. Computer advancements have made it simpler to choose a randomized name test from any rundown, with the goal that mailers can run a test mailing to decide the response from a rundown before “taking off,” or mailing, the whole rundown. Distinctive bundles containing diverse offers can likewise be tried. (Ellsworth, 2009) Other media permit some level of testing; however regular postal mail is the most advanced. In connection with the next direct advertising media, Direct mail is considered to offer the most financially savvy method for accomplishing the most noteworthy conceivable response. Telemarketing ordinarily creates a higher response rate, however at a much higher expense for each respond

Telephone-Based Direct Marketing

The utilization of the phone in direct marketing has developed drastically in the course of recent two decades. Users now may be equivalent, or even surpass, those of direct mail. Telemarketing may be outbound and inbound. Inbound telemarketing is called the servicing and more often includes taking requests and responding to request. Outbound telemarketing for purchasers may be utilized for one-stage offering, lead capability, and offering and overhauling bigger and more dynamic clients. In business, telemarketing can be utilized to reach littler records that don’t warrant an individual deals call and additionally to create, qualify, and catch up leads.

Telemarketing has the benefits of being close to home and intelligent. (Ellsworth, 2009)It is a successful two-way correspondences medium that empowers organization delegates to listen to clients. Phone sales representatives normally work from a script, yet the medium permits the adaptability of updating the script as required. It likewise considers up-and cross-offering. While clients are on the telephone, it is conceivable to build the measure of their requests by offering them extra decisions—something that tends to prompt perplexity in other direct marketing media.

Telemarketing likewise has its impediments. For instance, it is costlier than regular postal mail. It additionally does not have a changeless response gadget that the prospect can set aside or utilize later. It is not a visual medium—however, the innovation to make it one may soon be accessible. At long last, it is seen as meddling, producing buyer grumblings that have prompted authoritative activities to direct the telemarketing business.

Magazines

Direct responses print promotions in magazines must make a positive offer or demand that requests that the reader accomplishes something. Normally, such promotions require a reader to send in a coupon or answer card or call a without toll number. With well more than 2,000 purchase magazines now being distributed, magazine promotions permit direct advertisers to achieve groups of onlookers with identifiable hobbies. (Ellsworth, 2009)Notwithstanding publicizing vigorously in extraordinary premium magazines, direct advertisers use mass buyer magazines and exploit provincial promoting space to target particular gatherings of people.

Dissimilar to general publicists, who measure the viability of their print advertisements regarding span and recurrence, direct advertisers measure the adequacy of their print promotions as far as expense viability—either cost-per-request or cost-per-request. Magazine advertisements offer the upsides of good shading proliferation, a moderately long notice life (particularly contrasted with every day daily papers), and a lower expense. Imaginative expenses for magazine advertisements are additionally generally lower than for regular postal mail. (Dobkin,2007) Be that as it may, coordinate advertisers locate magazines’ long lead times, slower response, and scarcer space than standard mail to be a drawback.

Newspapers

While Direct Marketers publicize in magazines more than daily papers, daily papers have some distinctive focal points. These incorporate the assortment of areas offered inside of a daily paper, shorter shutting dates, a prompt response, and expansive scope of a substantial and different crowd. (Dobkin,2007) Weaknesses incorporate poor advertisement multiplication and the constrained accessibility of shading. Article substance can likewise have a greater amount of an antagonistic impact on promotion response than in magazines. Notwithstanding promoting in the general pages of a daily paper, direct advertisers additionally publicize in unattached supplements (FSIs) that are normally dispersed with the Sunday releases of daily papers.

Television

Direct Marketing on TV is expanding. Early cases of direct responses promotions on TV that ought to be well known to viewers incorporate those for blades, garden equipment’s, exercise gear, records, and books, which request that viewers bring in and request a particular item. Later advancements in direct response TV publicizing incorporate an arrival to a lengthier arrangement, regularly known as the infomercial, where an item or another offer is clarified in some point of interest over a period stretching out to 30 minutes or more. (Dobkin, 2007). Advocates of this arrangement point out that the most noteworthy length gives the promoter the chance to construct an association with the viewer and overcome introductory viewer suspicion, and in the meantime exhibit a persuading story spelling out item components and advantages in the subtle element.

Direct Marketing Lists and Databases

Lists are regularly utilized as a part of direct mail and telemarketing. The two essential sorts of records are response records and assembled records. Response records contain the names of the considerable number of prospects who have responded to the same offer. These people ordinarily share a typical hobby. (Dobkin, 2007) Names on a response rundown may incorporate purchasers, inquirers, supporters, progression club individuals, or sweepstakes participants. They may have responded to an offer from one of a few media, including post office based mail, TV, or a print notice. Response records are not as a rule leased; rather, they are an in-house rundown accumulated by a specific business. Gathered records are regularly leased by direct advertisers. Aggregated mass buyer, a specific customer, and business records are accessible for an extensive variety of hobbies.

Direct promoting databases are like mailing records in that they contain names and addresses, yet they go much further. They are the storehouse of an extensive variety of client data and may likewise contain psychographic, demographic, and registration information accumulated from outside sources. They frame the premise of direct promoting projects whereby organizations set up closer ties with their clients.

Database marketing got to be one of the popular expressions of the direct promoting industry in the 1980s, and it has kept on advancing in the twenty-first century (Dobkin, 2007). Whether it is called relationship marketing, significance promoting, or holding, the normal topic of database advertising is reinforcing associations with existing clients and building associations with new ones. Databases permit direct advertisers to reveal an abundance of pertinent data about individual buyers and apply that information to build the likelihood of a fancied response or buy.

Similarly, as with mailing records, there are two fundamental sorts of advertising databases, client databases, and outside databases. Client databases are ordered inside and contain data around an organization’s clients taken from the relationship-building procedure. Outer databases are accumulations of particular people and their qualities. These outside databases may be mass-ordered from open information sources; they may contain monetary information given private credit records; they may be aggregated from surveys; or they may be a blend of every one of the three sources.

Database Marketing, and particularly the possibility of utilizing private data for advertising purposes, has made security a vital issue in the Direct marketing industry. (Ellsworth, 2007) A few states have passed enactment constraining access to already open information or restricting the utilization of such information as car enrollments, records as a consumer, and medicinal data. The Direct advertising industry has endeavored to act naturally policing as to the utilization of touchy information. On the other hand, the battle between industry self-regulation and government regulation will most likely proceed for quite a while.

Advantages of Direct Marketing

Traceability and Quantifiable of marketing Viability

Direct Marketers offer the reached clients (potential or genuine) the chance to respond to the promoting communication, more often in a given period. (Nash, 2000) This helps advertisers to track the response rate and response classification (positive or negative) and get a ready examination, given which they can adjust or streamline their marketing endeavors and correspondence for better results in future.

Well organized approaches

Direct Marketing includes getting ready and keeping up a client database. (Nash, 2000) A database characterizes the objective portion into a limited gathering and every person in this limited gathering is spoken with through individual and direct correspondence stations, for example, phone, content, voice message, door-to-door correspondence, and so on. (Ellsworth, 2007)As it were, direct advertisers get a closer brush with their clients and in keeping their databases upgraded and staying in contact with their clients, such advertisers have a superior shot at altering their correspondence and conveying significant offers to just those clients who are well on the way to profit by it.

Less demanding Campaigns

Most direct marketing effort and correspondence are simpler and modest to plan and make. (Nash, 2000) Direct marketing channels, for example, messages and content additionally make making the correspondence snappier and less expensive contrasted with setting up gigantic hoardings and paying truckloads of money for notices that could conceivably be seen or heard by the intended interest group. This additionally makes it simpler for direct advertisers to dispatch test battles in new markets or sections as the expense and hazard are significantly lower.

Disadvantages of Direct Marketing

Hard to gain information vital to getting client database ready

While a client database is the spine of direct advertising and its vicinity is one of its greatest points of interest, obtaining such information may be a mammoth undertaking. (Nash, 2000) Not everybody may to take an interest in the business sector and client reviews and give out their own and expert points of interest. Additionally, information merchants and administrations that offer caught client information to advertisers likewise charge a high cost to part with such information. Along these lines, the introductory production of a database may be a significant tough assignment for an advertiser. Clients dislike nosy correspondence.

This is an undeniable disadvantage of direct promoting. Many people don’t like their inboxes, phone message boxes and cell phones to be overwhelmed with advertising and limited time content. (Nash, 2000) To cure this, individuals frequently utilize email and phone message channels and the advertiser’s correspondence either land straight in the SPAM envelope or gets erased without being opened by the focused on the client.

Limited Reach

While having a limited characterized gathering of target clients acts as a preference from multiple points of view by centering marketing efforts, this can likewise be a prohibitive component insomuch as the advertisers achieve stays constrained. (Nash, 2000) In spite of database overhauls and expansion of new clients, the scope of direct advertising can never touch the range of mass marketing routines.

Environment and Law

Different nations have laws against spamming and littering. (Nash, 2000) Direct advertising correspondence as flyers and flyers are inefficient practices as they advance lingering and utilization of paper.

Recommendation

Direct Marketing costs a great deal more than general purchaser media to achieve one thousand gathering of people individuals. Be that as it may, it is imperative not to judge direct advertising on the premise of a rough CPT correlation with other media. Keep in mind that direct ways to deal with individual buyers empower messages to be focused with noteworthy exactness, guaranteeing that the advancement goes just to those individuals well on the way to be keen on the substance of the message. (Ellsworth, 2007)This alone ought to be sufficient to raise doubt about the value of CPT correlations in assessing direct marketing.

Direct Media additionally convey publicizing messages and offering chances to potential buyers in the solace of their homes’. Responses are simple; generally, the buyer makes a phone call. At the point when direct channels are utilized, the messages have negligible competition for the shopper’s consideration from other promotions, the timing can be exactly controlled, and contenders will be less mindful of the crusade. However, most basic examination of media performance is the measure of response it creates.

In general consumer advertising, it is regularly hard to attribute battle results with total sureness to the publicizing, because different components may have been grinding away in any deliberate change, whether that is enhanced deals or expanded attention to an item on the objective business sector.

With Direct Marketing, contending media can be all the more surveyed for their adequacy by measuring the accurate level of response that they fortify. Here the measure is not the expense of coming to one thousand individuals from the gathering of people, yet the expense of getting only one of them to respond in the fancied way

Conclusion

Direct Marketing is a branch of advertising that has experienced fast development and mechanical change in the course of recent years. It is a vital marketing procedure, and a few associations construct their whole advertising methodology in light of direct promoting routines. (Ellsworth, 2007) Around the world, the Direct Marketing industry is enormous. As firms look to methods for getting more esteem from advertising spending plans, direct promoting is liable to wind up considerably more grounded later on. Direct promoting alludes to a gathering of techniques that permits organizations to correspond with, and get a Direct response, from prospects. It permits firms to target clients more decisively than traditional non-direct marketing procedures and is alluded to as exactness promoting.

Direct advertising procedures are continually being enhanced, and created, and new imaginative media are prone to be produced later on (Ellsworth, 2007). At present, the fundamental strategies utilized inside of the direct marketing industry are the utilization of the phone, regular postal mail, the web, direct ‘eye to eye’ individual offering and direct response publicizing utilizing TV, radio and daily papers, exchange diaries and magazines. The business is being driven by a craving for more noteworthy precision and economy in promoting operations and by advancements in IT that can be connected to direct marketing. Database promoting specifically has reformed the way associations utilize direct marketing and has expanded effectiveness in ranges like post office based mail and phone advertising. Direct advertising is not exclusively determined by IT. (Ellsworth, 2007) Some conventional strategies that were utilized as a part of 1917 when the Direct Marketing Association was established in the USA are as yet being utilized effectively, especially eye to eye direct individual offering. (Ellsworth, 2007) On the other hand, these strategies have profited from the data upheaval regarding recovery of client data and enhanced focusing on. Direct marketing is a noteworthy power inside of promoting and is prone to increment in future.

References

B.V, Elsevier. “Direct Marketing.” Journal of Research in Interactive Marketing (2009): Voulme 3: 58 – 59. Print.

Dobkin, Jeffrey. Direct Marketing Strategies: Forget Theory – Here’s What Really Works! Merion Station, PA : The Danielle Adams Publishing Company, 2007. print.

Ellsworth, Belinda. Direct Selling For Dummies. River Street: For Dummies, 2015. Print.

Nash, Edward. Direct Marketing: Strategy, Planning, Execution. New York: McGraw-Hill Education, 2000. Print.

John Wiley &. Sons, The New Direct Marketing: How to Implement A Profit-Driven Database Marketing Strategy. New York: McGraw-Hill, 1999. Print.

Click Here To View Marketing Dissertations

McDonald’s Global Business Environment

Global Business Environment Case Study McDonald’s

The Global Business Environment – McDonald’s Corporation is a fast-food international chain restaurant which incorporated on December 21, 1964 (McDonald’s, 2015). This global restaurant today operates and franchises in around 119 countries of the world. Around 4 million employees work for the company in its different restaurants and serve 70 million customers per day (Jhaveri, 2014). According to a latest survey in the year 2014, 17% of the fast food industry in the US is dominated by McDonald’s and it is the largest share in the industry. Yum! Brands (YUM) are the closest competitor with a market share of 11%.

McDonald's Global Business Environment — McDonald’s Global Business Environment

The uniform menu of McDonald’s consist of chicken sandwiches, Big Mac, hamburgers, chic nuggets, wraps, the quarter pounder with cheese, soft drinks, desserts, and other beverages. But as the company is into international business, the menu also includes locally relevant food stuff like the black and white burger in China, gazpacho in Spain, and the Veg Pizza McPuff in India (Jhaveri, 2014). The operations of all the restaurants of McDonald’s are managed by the Company itself or by franchises. The franchises are bounded by conventional franchise agreements and foreign affiliated markets under license agreements. The whole business of McDonald’s is subdivided into geographic segments including Europe, the United States, Asia/Pacific, Africa, and Middle East (McDonald’s, 2015). In addition, it presents Other Countries and Corporate, which includes operations in Canada and Latin America, as well as corporate activities. The multifaceted global environment does not complete without competitors. There are some strong competitors of McDonald’s like Pizza Hut, KFC, Burger King etc. All these competitors possess a long business history, remarkable market share, and a good brand image. To ensure its dominating position in the fast food industry, McDonald’s have to take into consideration the power of its competitors.

Global Business Environment of McDonald’s

Every business organization is strongly affected by its business environment. In case of global business, the analysis is usually done for the global business environment. McDonald’s is a big name in the fast food industry and thus the business sometimes gets swayed by the prevailing internal and external environment. There are several diversified tools and methods to analyze the business environment, but in case of global business the most appropriate tool is PESTLE analysis (Bruce, 2014). It considers Political, Economic, Social, Technological, Environmental, and Legal factors of the organization.

Political

The rules and regulations of the government and the policies of the state always affect the business operations of the organization. The business scenario of McDonald’s is also no different. The laws of every nation influence the business operations of McDonald’s and some of the major issues include food business norms, employee laws, license, and tax issues. The franchise business strategy of McDonald’s gets influenced by the foreign investment policies and local government policies as well.

Economic

One of the vital issues of majority of business organizations is the economic factor. Primarily, most of the organizations try their level best not to get affected by the ongoing global fiscal crisis. In different countries of the world, McDonald’s generally faces diversified kinds of revenue measurements and taxes. Owing to the fluctuations in the international currency, the company has to face tough times dealing with economic balance. Not only global, but local economic condition also affects the business operations of McDonald’s.

Social

There has been lot of transformations in the living style of people and all these transformed demands affect the business operations of McDonald’s. Customers ask for highest quality service with all the modern facilities. Furthermore, transformations in the demands of the customers vary from nation to nation and from religion to religion. So, in order to fulfill the demands of the customers, McDonald’s has thoroughly researched the market and provided effectual food menu to all its customers.

Technological

To meet the expectations of the customers, the impact of technological advancements is also considered these days. Also, to sustain successfully in the competitive market, the company always ensured that adequate and influential technological access must be there to attract more number of customers as compared to its competitors. Some of the advanced and competent technological facilities provided by McDonald’s include customer retaining equipment, speedy and modern distribution channels, quick and easy payment options, wireless internet facility and the company is endeavored to augment more number of facilities within its stores.

Legal

To run smoothly every business operation, following legal rules and regulations is a kind of mandatory task for the company. McDonald’s follow the same by paying taxes, stuff laws, following health and safety rules. The company also food authorization rules in some Muslim countries and care about the perceptions and religious beliefs of the customers. As a giant fast food chain, the company believes that abiding legal laws will intensify their public image.

Environmental

In some past incidents, McDonald’s has faced criticism for using non-biodegradable substances for its drinks glasses. Also, some environment activists have targeted the company for using Styrofoam containers for meals and packaging items based on polystyrene. It is seriously discouraged for the greater interest of environment issue.

Conclusion

For the last many years, McDonald’s has become the first choice of especially kids and youngsters as a fast food company. The company has responded very well to the transforming the global business environment and turned out to be a dominating market leader and a pioneer of the Quick Service Restaurant. McDonald’s has efficaciously achieved heights of success in the fast food industry. The company has always given priority to its customer service quality and listened to the choices and preferences of the customers. McDonald’s as a renowned brand has already offered and kept the company ‘ahead of the game’ in the ever-escalating competitive business industry.

References

Bruce Horovitz (May 18, 2014). “McDonald’s testing seasoned fries” The Global Business Environment USA Today

Jhaveri, Amit. 2014. Must-know: A Company Overview of McDonald’s and The Global Business Environment

Click Here To View Business Management Projects

New Economy and New Culture

Global Business Environment

New Economy and New Culture

Moving towards a New Economy. Traditionally an economy was defined in terms of deciding factors influencing the distribution of limited and scarce resource among the competing forces in highly competitive environment. The scope of the subject was limited to efficient performance of production processes. The agenda of fairness has been rarely incorporated in the economic system.

Economic theories were not contributing enough to resolve the economic and practical problems. Freedom of mind lost its connection with reality and introduced hypothetical theories to resolve the economic issues prevalent in the environment. These theoretical frameworks present comprehensive and ample method of evaluating the individual behaviors but at same time produce variety of testable issues which demand extensive and profound scrutiny.

Behaviors of individuals are examined and analyzed by numerous economic endeavors and economic agents. It is very difficult to define culture as it implies numerous meanings, transformed into various aspects without any mutually agreed definition.

Culture is associated with the subject of humanities and social sciences and its meaning varies widely across disciplines. It ascribed different meanings in different centuries and the most recent one focused on the intellectual development of entire civilization and entire lifestyles of individuals which supplement the cultural values. Culture is social frame work which defines the attitudes, beliefs, norms values shared by large group. The main objective of relating economy with cultural dimensions is to investigate the role of cultural instruments in economic development and economic performance of the society (Throsby, 2001).

New Economy and New Culture

Some of the extremists believed that new economy would be free of all the inflationary problems which would lead to recession or economic downturn because of technological development. According to (Wired, 1998) new economy would evolve with the help of technological change, globalization in the economy and skills and creativity of individuals in the society.

Development in information technology would largely impact the work in production industry. Technological change is revolutionary change which enhances the workers ability and skills and affects the social choices of individuals (Zuboff, 1988).

Globalization would narrow down the geographical boundaries and expand the market across the borders and scope of the new economy would be globalized. This globalization would redesign the rules of competitiveness in the economy. It has differential effect in the society and has enabled to achieve free market mechanism against protectionism (Brink Lindsey, 2001).

The effect of globalization has also deprived local culture from its unique cultural factors. So the cultural factors have also evolved along with the economy because of dramatic changes in the world. New economy demands completely new skill set among workers. Ne economy values creativity and innovation of the individuals to compete in global market.

New economy capitalizes on the value of intangible assets and provide dynamic and information rich environment for operation to its workers. (Malone, 1999) New economy has produced heterogeneity and flexibility in cultural instruments of the society and has established unique relationship between culture and economy. Contribution of creative sector in the economy has highlighted that the problems of cultural policy are almost the same as problems of economic policy.

New economy is described as global, networked and information rich economy with creative and innovative workforce. It generates niche- marketed goods and services staffed by intelligent and culturally rich workers and satisfy the creative and cultural needs of individuals. Cultural needs of individuals evolve with the growth in creative sector of the society (Healy, 2002).

The focus of cultural values has shifted from direct economic contributions produced by creative industries towards indirect economic benefits like creativity and innovation, employability and social inclusion. Social and cultural values, capital and human characteristics are highly considered factors in the formulation of cultural policy which is associated with the economic policy (Böhm & Land, 2009).

Development in the work life and labor markets demands the understanding of motivational factors of workers. Creativity and innovation has generated new appeal for culture in the new economy. Cultural context of economics can be easily explained as economic agents observe and breather in the cultural environment which regulates their behaviors and outline their preferences. Cultural economy helps to scrutinize the social and economic dimensions of the society.

Contemporary Business and Economy

Evolution in the economy and international standards have created intimidating business environment for several multinational companies and their brands operating globally. Newly evolved business environment poses challenges of economic downturn, high cultural sensitivity because of cultural shifts in the society, lack of motivation and job satisfaction among the workforce and corporate scandals leading to lack of trust in capital markets.

These challenges are attributed to globalization of market, development in information and technology and diversity in the workforce. Organizations operating in this highly unpredictable working environment are struggling to restore their trust in the corporate world. Some organizations are trying to regain their position in this hostile environment by setting ethical standards, strict rules, establishing transparent processes, addressing public concerns, performing cultural audits and by establishing social challenging performance targets. All these efforts pave path towards the formation of new economy and new culture collectively described as cultural economy (Goodman, 2004).

Organizations in contemporary business environment are highly susceptible to social, cultural and moral issues of the society. Changes in the operating environment of businesses largely sway the skill requirement of businesses.

Business organizations are adapting and transforming their operating activities according to the cultural, social and moral standards of the society. This transformation largely influences the competitive position of the business in competitive landscape. It also helps in developing positive image and repute of the business in the society.

Change agents like economic environment, technology and globalization have forced the organizations to capitalize on the cultural economy in order to adapt and perform landmark success in their industry. Implications of contemporary issues raised by the environment could be easily modified and capitalized by balancing their business environment with new economy and new culture (Crane & Matten, 2010.).

Importance of New Economy and New Culture

Cultural processes and values adapt to material environment. The role of culture in the economic development of third world countries could be effective by identifying their cultural integrity and cultural aspirations of poor people and improving their material circumstances according to their cultural traditions. Development of culture and economic circumstances are intertwined in the society.

Development projects introduced by NGOs in under developing countries for raising their living standards and economic conditions largely depend on the understanding of their cultural traditions. This explained that culture determines the scope of material process in economic context (Throsby, 2001). The driving force in international market is culture and creativity. The impact of culture is evident not only to the economy but also to their society. Increase importance of culture in economy and society has transformed the way of creation, consumption and enjoying cultural products.

Culture is not only significant mean towards economic growth but also fundamental factor in social cohesion and development of human civilization. Cultural industries deal with the conception, production and commercialization of creative products which have social and economic importance in the market.

From 1999 to 2003, growth in cultural and creative industry in European Union was 12.3% more than economic growth. In 2004 cultural sector employed 5.8 million people in Europe. Moreover the jobs created by cultural and creative sector provide sense of assurance and commitment, job involvement and satisfaction to their workers.

Cultural industries contribute towards enhancing the economic performance of the countries. The Great Wall of China as cultural heritage is source of tourist income and attracts national investment. It enhances the value of the brand of the national products and mobilizes the economy. This example illustrated the economic and social contribution of culture in the society (Pol, 2007).

The concept of knowledge-based economy provides economic support to creativity and talent and emphasizes on the framework of cultural growth and development. Traditional production factors have evolved and change in the new economy. Key underlying factors of social and economic growth are knowledge, creativity, innovation and skills. It has not only changed the economic structure but revolutionized the development of economy and society.

Economic growth and development largely relies on the application new ideas and creativity in the cohesive economy. Influential component of culture, behavior of individuals and social groups emphasize and lead toward the development of society. The idea of cultural materialism enabled better understanding of the relationship between culture and economic development. Development of society largely depends upon the development of culture and arts.

The UN is also taking initiatives, passing resolutions and policy papers to ensure that to introduce cultural industries in the policy formation of developing and under-developed countries. This explained that efforts are being done to shift from narrative importance of cultural economy towards the performative. Realizing the importance of cultural economy, international and national organizations are taking practical initiatives to incorporate cultural dimension in their economy (Anon., 2009).

Qualitative research on arts and culture have exhibited that it positively contribute towards the better health and well-being of individuals, improve the social identity and cohesion, community development and economic benefits to the society. Cultural and art oriented projects enhance the personal motivation of individuals and provide social esteem leading to healthy benefits to the society. Cultural economy fosters intercultural understanding which helps to accommodate diversity in cultures and populations.

Cultural exhibitions and festivals played significant role in validating the diversity in the workforce and overcome the problem of social isolation in the work environment (Coalter., 2001). Highly competitive nature of business demands the workforce to be highly motivated and satisfied which in turn would contribute towards the high productivity and improved economic performance. Economic effect of art and culture could be explained by dollar value generated by creating jobs for artists, investment in tourism and revenue generated from the cultural artifacts. Cultural economy helps in the creation of energetic and creative work environment which is very crucial for contemporary business and economy (Azmier, 2002).

Historically business environment was confined to geographic boundaries but globalizations and development in technology has revolutionized the business environment. Human capital is considered as most important asset for the enhancing the productivity and economic activity of the businesses.

Cultural economy nourishes the creative and social needs of employees and work as knowledge multiplier in securing sustainable competitive advantage for organizations. Cultural economy has also enlightened the creative insight of businesses to develop products and services matching the cultural traditions and integrity of the people. It is also encouraging workforce to actively participate in contemporary business environment. Policy makers and businesses largely comprehend the significance of cultural industry in the economy and its importance to survive in global and competitive market.

In contemporary business environment market value of the products largely rely on the uniqueness of products its performance and innovative appeal in establishing unique competitive edge from the market. Customers highly value the innovative and unique product which is coherent with their cultural identity (Thomasian, 2009).

The twentieth century is dominated by knowledge workers and challenges of global market place. These global challenges demand the creativity and innovation in the business processes and products offered by businesses. Cultural economy serves the dynamic needs of global marketplace and contributes creativity by ensuring the sustainable competitive advantage based on creative and innovative workforce.

According to (FREY, 2009) institutional effect of culture on economy is extremely challenging to evaluate. Some of the researchers examine the institutional effect by estimating social value created by cultural institutions. Social value is subjective in nature and cannot quantify the value created by cultural institutions in the society. Cultural economics is considered as branch of economics which incorporates psychological and social elements in economic to influence the intrinsic motivation of individuals.

Monetary value of economic effect of cultural economy could be easily evaluated by the revenue generated, creation of new jobs and with the ancillary businesses attached to it. Hence this new term of cultural economics is largely affecting and supporting the contemporary businesses and economy. It helps to overcome the challenges of competitive, global and technologically efficient market place and intrinsically motivate it workforce by fulfilling the cultural and social needs

Relationship with the Banking Industry

The agenda of this study is to investigate the normative assumption which states that cultural economy completely relies on the real economy of the world. The business environment under study is financial services sector or banking sector. Cultural economy has evolved and restructured its long term relationship with the economy and social factors.

The basic assumption is that cultural economy is largely substituting the finance and manufacturing industry in the urban society. The research conducted by Pratt in 2012 explained that normative connection between culture and economy is inconsistent. The experience of recent recession has forced the economist to reconsider the relationship of culture with the economy.

The assumption that is recession cultural industry would hit a setback was completely rejected when in recent austerity creative industry flourished as compare to other periods. While banking industry was highly leveraged and with risky loans caused failure of banking systems. The problem rose because of over extension of assets which multiplied the problem and state financed the bank’s debt it lead to the issue of sovereign debt (Pratt, 2012).

The relationship of cultural economy and financial institutions like banks are questioned frequently because of financial and sovereign debt crisis. Investigation of this relationship leads to the formation of new economy concentrated on the logical position of cultural economy.

Social mobility of people from lower class and middle class towards cultural products to have fun and luxurious aspect of cultural factors forced cultural market modernize the way of entertainment. Banking industry provided finances to Greek state but with the shrinkage in public or state investments cultural consumption by the people remain same. In comparison to financial sector it flourishes and exploits the city resources (Souliotis, 2013).

These empirical researches exhibit that cultural economy has more complex and intricate relationship with the banking industry. In case of recession cultural industry and financial service industry move in opposite directions. Prior researches could not clearly identify the underlying reason behind this deviation form normative assumptions of cultural economy. Moreover it is proposed that economic desire is based on the individualistic behaviors while cultural desires are based on collective behaviors of the society.

These evidences explained the fact that banking industry is not influenced or affected by cultural economy. These two parts of economy stand alone. Underlying reason may be the social mobilization of the social classes in economy. Upward social mobilization and luxurious entertainment were some the driving forces which motivated the cultural consumption even in austerity.

While at the same time shrinkage of public funds and shortage of bonuses for the employees of financial services in the period of recession explained that it portrays negative relation during crisis. There may be some hidden underlying variables which demand more research on this complicated phenomenon between cultural industry and banking sector.

References

Anon., 2009. Measuring The Economic Contribution Of Cultural Industries. 2009 Framework for Cultural Statistics Handbook No. 1. Montrea: UNESCO Institute for Statistics.

Azmier, J.J., 2002. Culture and Economic Competitiveness: An Emerging Role for the Arts in Canada. Canada West Foundation.

Böhm, S. & Land, C., 2009. No measure for culture? Value in the new economy. Capital & Class, 33(1), pp.75-98.

Brink Lindsey, 2001. Against the Dead Hand: The Uncertain Struggle for Global Capitalism. New York: Wiley.

Coalter., F., 2001. Realising the Potential of Cultural Services: Making a Difference to the Quality of Life. London: Local Government Association.

Crane, A. & Matten, D., 2010.. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.

FREY, B.S., 2009. Cultural Economics. CESifo DICE Report.

Goodman, D.M.B., 2004. Meeting the Global Challenges of the Contemporary Business Environment. New York: Royal Society for the encouragement of Arts.

Healy, K., 2002. What’s New for Culture in the New Economy? The Journal of Arts, Management, Law and Society, 32(2), pp.86-103.

Malone, M.S., 1999. Reflecting on a New World of Business. In Impart, pp.36-42.

Pol, H.v.d., 2007. Key role of cultural and creative industries in the economy. UNESCO Institute for Statistics.

Pratt, A.C., 2012. A world turned upside down: the cultural economy, cities and the new austerity. In Pratt, Andy C. “A world turned upside down: the cultural economy,. Proceedings of the Regional Studies Association Winter Conference., 2012.

Souliotis, N., 2013. Cultural economy, sovereign debt crisis and the importance of local contexts: the case of Athens. Elsevier, 33, pp.61-68.

Thomasian, J., 2009. Arts & the Economy: Using Arts and Culture to Stimulate State Economic Development. Washington: National Governor Association.

Throsby, D., 2001. Economics and Culture. Cambridge University Press.

Wired, 1998. Encyclopedia of the New Economy. Wired Magazine.

Zuboff, S., 1988. In the Age of the Smart Machine: The Future of Work. New York: Basic Books.

The Economic Environment Project

View Economics Dissertation Titles Here

Brand Equity Marketing

International Marketing Plan

Since the beginning of time, men and women have always remained fashionable in one way or the other. From clothing made out of loin to cloaked attire, from gown and coats to the fascinating accessories of the 19th century, fashion has indeed been prevalent in every season from year to year hence renovating their way of dressing from time to time (Miller & Mills, 2012, 1471-1479). Brand Equity Fashion in the past, can be also contributed to the elite fantasies held by people, right up to the mid-1850s, when the first Paris based British professional fashion designer emerged. Initially, Paris was the only place that reined the fashion industry, however soon other names such as Milan and London caught up, introducing their own line of fashion niche. If the fashion industry remained stagnant then it would have already become unstylish and died. Subsequently, today there are endless designs and customer segments, prevalent within the fashion sector (Miller & Mills, 2012, 1471-1479).

In today’s fast paced world of fashion, the success of global retailers depend a great deal on their ability to be able to put the right items in the right style or size in the hands of the consumers but at the right time. This may seem to be a simple concept but can at times be quite tedious to execute (Li, Li & Kambele, 2012, 1516-1522).

After meeting with Andrew Ramroop and hearing the success story, I have decided to follow his example and penetrate the international market with my newly established fashion clothing and accessory brand, called El Lujo.

SWOT Analysis

SWOT analysis, a form of strategic planning, is ideal for volatile fashion industry. The SWOT analysis evaluates “strengths, weaknesses, opportunities and threats” involved with the set business objectives (Barney, 2008, 99-120). They consider both internal and external factors. The analysis then defines the favorable and unfavorable factors and their potential impact on the ultimate goal.

A SWOT analysis covers four areas of consideration. First, the “strengths” take into account the internal attributes that positively influence the business objective. The second area, “weaknesses”, identifies possible weak points within the control of the company which may result in a negative outcome (Barney, 2008, 99-120). The third category, “opportunities”, analyses the external conditions that favor the achievement of the final goal. Finally, there are the external “threats” that are beyond the control of the company to be assessed.

Strengths

Some of the strengths of El Lujo include clearly manifested competence, adequate financial resources, the high competition, a good understanding of consumers, clearly articulated strategy, the use of economies of scale, its own unique technology, a reliable distribution network, high fashion R & D and etc.

Weaknesses

Any unusual or unnecessary cost, lack of reputation in the high-end fashion market or lack of presence in a particular region are considered as weaknesses. The loss of certain aspects of competence, lack of access to finance, lack of analysis of information about consumers, the weakest market participants, lack of a clear strategy, inconsistencies in its implementation, high costs of production, obsolete technology, the loss of depth and flexibility of management, weak distribution network, weak positions in R & D etc. are all weaknesses that El Lujo may face.

Opportunities

Entering new market segments, expanding the range of luxury goods, complacent competitors, the reduction of trade barriers, enabling economic, political and social conditions, resource availability, etc. are the opportunities that El Lujo will be considering as opportunities for business profitability (Barney, 2008, 99-120).

Threats

Economy and the politics are the principle threat to a fashion brand. Political instability in the region of raw materials supply, trade embargoes, and financial crises result in limited consumption expenditures etc. are some of the threats to the accessibility of raw materials, distribution, exposure of brand and brand recognition, and consumer buying (Barney, 2008, 99-120).

Marketing Analysis

Fashion orientation is considered as an important source of new market research related to the worldwide clothing industry. Consumer behaviour, lifestyle, and shopping purpose can affect activities throughout the fashion supply chain. However, the fashion industry is an increasingly global business with considerable variations in the cultural, social, and economic aspects of the participants (Cadogan, 2009, 119-130). Consequently, the practice of fashion marketing is not uniform at a national or international level, and differences are necessary to appeal to different subcultures. That’s why researchers and managers have been paying increasing attention to the effects of acculturation on fashion orientation. Most fashion designers allocate 20-30 percent of their expenditures to marketing efforts, partly funding customization of marketing campaigns to appeal to different subcultures(Li, Li & Kambele, 2012, 1516-1522).

Luxury fashion brands have become a powerful force in the world and have grown not only in numbers, but in terms of influence and visibility. They have, “moved from backstage to center stage in world market, and are exerting their power and influence in every aspect of international relations and policy making” (Cadogan, 2009, 119-130). Today, international fashion brands play a major role in reducing boundaries and creating international successful brands. Although very numerous, the international business sector is highly consolidated with the largest 20 international organisations accounting for 50% of revenues and sales (Gilbert, 2007, 25-26).

Brand Equity

Fashion advertising studies have revealed that consumers have definite preferences for advertising. According to findings by Bowman, (2010); apparel styling affected evaluations of advertising appeals. Bowman, (2010) additionally observed that high self-monitoring subjects were willing to pay more for items if the item was publicized with a picture, and were all the more ready to buy an item if the image appeal was promoted. Low self-monitors responded all the more positively to item quality oriented advertisements and were willing to pay more for items if they were publicized with a quality orientation. Low self-monitors were additionally more eager to pay more if the item be promoted with a quality orientation, and all the more ready to buy an item if it had a quality claim.

Brand Equity

In addition to the challenges of increased competition, international organisations are facing a crisis of brand equity. Bowman, (2010) suggests that at the root of this crisis, is the extent to which international organisations lack brand representation and accountability to the consumers. In addition, critics argue that international organisations lack proper branding strategies to justify their products and services in terms of values.

Current environments with high levels of globalization have led to large enterprises manufacture their products in less developed countries to reduce their production costs, while firms in developing countries do in other developed countries to take the prestige of those markets (Barney, 2008, 99-120). From the demand side, consumers rely heavily on extrinsic signals, such as trademark, perceived quality or price in the when evaluating products. Under such scenarios, it is increasingly difficult to achieve sustainable competitive advantage by Porter. One of the attributes that have the potential to achieve sustainable competitive advantage, both domestically and internationally, is the country of origin or the country image of a product for (Barney, 2008, 99-120). Therefore, it is becoming of greater interest to countries to implement marketing strategies would achieve a position against other countries. Furthermore, include the strategic role played by brands to the great diversity of offerings undifferentiated, saturation in the media and the influence of new technologies information (Azuma & Fernie, 2003, 4). The increase marks the perceived usefulness and the desire to possess them, are indicators of safety for consumers and sources of origin, since activated signs of its origin among consumers when they come into contact with the same (Li, Li & Kambele, 2012, 1516-1522).

Li, Li & Kambele, (2012) suggests that luxury fashion brands like El Lujo have three strategies open to them: incremental change (which he suggests may be “too little too late”); global marketing, defined as the aggressive marketing of the organisation’s brand; and third, new branding strategy, that leverage change by working in collaboration with “markets, businesses, ideas and attitudes.” It is this third option that Li, Li & Kambele, (2012) consider potentially the most attractive route forward for international organisations.

To focus on the impact of a particular segment of the market, luxury fashion brands like El Lujo must use commodity branding and develop appropriate and develop the theme of Brand Equity or Brand Value. The strategic management of brands is to design and implement marketing activities and programs intended to create, measure, and manage brands to maximize value.

One of the key concepts of this process is called “brand equity”, defined as the value added which provides products and services. This value is reflected in how they think, feel and act consumers regard to the brand, or price, market share and profitability that creates the brand for company (Aaker & Joachimstaler, 2000, 347-356). For branding strategies to be successful and generate brand equity, consumers should be convinced that there are significant differences between brands of the same category products or services. This is the reason for the branding: promote the differentiation of a mark for its competitors and its products very similar (Aaker & Joachimstaler, 2000, 347-356).

To achieve high brand value it must achieve a series of attributes that are indicative of their strength. (a) “Differentiation” refers to a strong brand should be unique and distinguishable from other brands by consumers. (b) The “relevance” indicates the attractiveness of the brand: to what extent my brand communicates attributes important in satisfying the desires of my customers? (c) A strong brand should achieve “high estimates “, a high degree of appreciation, affection and respect that the brand receives. (d) The brand strength is associated with a “high knowledge” and level of familiarity and intimacy of consumers with the brand. Finally, a mark must be achieved through communication symbols and a (e) shows strong associations Identity positive light on what it means and what the brand promise to consumers (Aaker, & Joachimstaler, 2000, 347-356).

A strong brand is not just about trademark, logo or name. Branding is a procedure that relates to communication, company strategy and target market (Abell, 2008, 45-58). There are many elements attached to branding such as images, association, culture and stories. The elements of brands can be inspired by consumers and Internet users. Strong brand is exists among consumers, as it is hard for individuals to switch from one strong brand to another brand and abandon their original conventions. Due to the nature of strong cultural collectivism in China, the social context of brands becomes an important characteristic (Abell, 2008, 45-58).

Strong brand can help consumers by reducing the perceived risk in their purchase behavior. Perceived risk is about the acceptance of uncertainly and the complex result of purchasing product or service (Abell, 2008, 45-58). There are 6 dimensions included in perceive risk: “performance, financial, opportunity/time, safety, social and psychological risk” (Azuma & Fernie, 2003, 4). Strong brands can give consumers a promise of suitable value on the goods or services they offered. Through getting this promise consumers can make a stronger purchase decision on the strong branded products.

Creating a strong brand can also drive shareholder value. The initial target of the boardroom is to create and sustain shareholder value, and get return from the competition process. One way to achieve this target is to build a brand with strong brand equity. Tim Ambler proposes: “Brand equity is the reputation assets that any successful business builds in the minds of customers and other stakeholders” (Azuma & Fernie, 2003, 4). It is also one of the reasons that capital in the market is higher than the value that set before. The future financial performance of a brand can be predicted according the strength of its brand equity.

Marketing Mix

Product: Marketing facets of products as per the details of their products or services, and how it identifies with the needs of consumers. The extent of a product mostly incorporates supporting components, for example, guarantees, warranties and product quality that is principally focused.

The wide range of fashion product by El Lujo is safe to use and are produced through natural resources that focuses the beauty of the customers. The fashion products are more focused and are taken into account through the advertisements and promotional strategies. The products of the body shop are more focused on the quality.

Price: This means the procedure of price fixing of product, together with discounts. The price does not require to be fiscal, yet it may be what is traded for goods or services, for example, time, attention, or energy.The price remains a fundamental component of the marketing mix given its impact on market share and profitability. Despite popular belief, fashion products do not cost more than conventional products, and are therefore addressed to a wide audience. It takes on average 500€ to 1000€ for the fashion products to be purchased by the customers, who love them. It is found that the economical premium brands are even less expensive than their conventional counterparts.

Placement: This involves to how the goods reach the consumers, for instance, position of retail or point of sale. The third P has additionally been called Place, which refers to the channel which is used to sell a product or service (e.g. retail versus online), which geographic area or market, segment (young generation, families, business, and so on.).

Promotion: The promotion activities consist of sales promotion, advertising and personal sales. Branding alludes to the different strategies for promotion of product, brand or organization. Distribution systems are turning out to be more diverse, they are no more restricted to traditional clothing store and accessory store, but reach out to all circuits: perfumery, beauty products, online stores, etc

References

Aaker, D. A., & Joachimstaler, E. (2000). Building strong brands. New York: Free Press. Aaker, J. (1997). Dimension of brand equity personality. Journal of Marketing Research, 34, 347-356

Abell, D. (2008). Strategic Market Planning: Problems and Analytical Approaches, London, Prentice-Hall, 45-58

Azuma N., Fernie J. (2003) Fashion in the globalized world and the role of virtual networks in intrinsic fashion design, Journal of Fashion Marketing and Management, Vol. 7. No. 4

Barney, James. (2008). Firm resources and sustained competitive advantage.” Journal of Management 17.3: 99-120

Bowman, D. (2010). Market response and marketing mix models: trends and research opportunities. Boston. 77-90

Cadogan, J. W. (2009). Marketing-mix strategies – distribution strategy and pricing strategy. Los Angeles U.S.A.: Sage. 119-130

Gilbert, D. (2007) “Retail Marketing Management and Brand Equity”, New York, Prentice Hall, pp.25-26

Ko, E., & Megehee, C. M. (2012). Fashion marketing of luxury brand equity: Recent research issues and contributions. Journal of Business Research, 65(10), 1395-1398.

Li, G., Li, G., & Kambele, Z. (2012). Luxury fashion brand equity and consumers in China: Perceived value, fashion lifestyle, and willingness to pay. Journal of Business Research, 65(10), 1516-1522.

Liu, F., Li, J., Mizerski, D., & Soh, H. (2012). Self-congruity, brand equity attitude, and brand loyalty: a study on luxury brands. European Journal of Marketing, 46(7/8), 922-937.

Miller, K. W., & Mills, M. K. (2012). Contributing clarity by examining brand equity and luxury in the fashion market. Journal of Business Research, 65(10), 1471-1479.

Moore, C. M., Doherty, A. M., & Doyle, S. A. (2010). Flagship stores as a market entry method: the perspective of luxury fashion retailing. European Journal of Marketing, 44(1/2), 139-161.