Consumer-to-business (C2B) is an electronic commerce business model in
which consumers (individuals) offer products and services to companies
and the companies pay them. This business model is a complete reversal
of traditional business model where companies offer goods and services
to consumers (business-to-consumer = B2C). We can see this example in
blogs or internet forums where the author offers a link back to an
online business facilitating the purchase of some product (like a book
on Amazon.com), and the author might receive affiliate revenue from a
successful sale.
This kind of economic relationship is qualified as an inverted business
type. The advent of the C2B scheme is due to major changes:
* Connecting a large group of people to a bidirectional network has
made this sort of commercial relationship possible. The large
traditional media outlets are one direction relationship whereas the
internet is bidirectional one.
* Decreased cost of technology : Individuals now have access to
technologies that were once only available to large companies ( digital
printing and acquisition technology, high performance computer, powerful
software)
Saturday, May 5, 2012
Wednesday, May 2, 2012
Consumer-to-consumer (C2C)
Consumer-to-consumer (C2C) (or citizen-to-citizen) electronic commerce
involves the electronically-facilitated transactions between consumers
through some third party. A common example is the online auction, in
which a consumer posts an item for sale and other consumers bid to
purchase it; the third party generally charges a flat fee or commission.
The sites are only intermediaries, just there to match consumers. They
do not have to check quality of the products being offered.
Consumer-to-consumer (C2C) marketing is the creation of a product or service with the specific promotional strategy being for consumers to share that product or service with others as brand advocates based on the value of the product. The investment into concepting and developing a top of the line product or service that consumers are actively looking for is equatable to a Business-to-consumer (B2C) pre launch product awareness marketing spend.
Consumer-to-consumer (C2C) marketing is the creation of a product or service with the specific promotional strategy being for consumers to share that product or service with others as brand advocates based on the value of the product. The investment into concepting and developing a top of the line product or service that consumers are actively looking for is equatable to a Business-to-consumer (B2C) pre launch product awareness marketing spend.
Monday, April 9, 2012
Business to consumer
While the term e-commerce refers to all online transactions, B2C stands
for "business-to-consumer" and applies to any business or organization
that sells its products or services to consumers over the Internet for
its own use. When most people think of B2C e-commerce, they think of
Amazon, the online bookseller that launched its site in 1995 and quickly
took on the nation's major retailers. In addition to online retailers,
B2C has grown to include services such as online banking, travel
services, online auctions, health information and real estate sites.
Peer-to-peer sites such as Craigslist also fall under the B2C category.
B2C e-commerce went through some tough times, particularly after the technology-heavy Nasdaq crumbled in 2000. In the ensuing dotcom carnage, hundreds of e-commerce sites shut their virtual doors and some experts predicted years of struggle for online retail ventures. Since then, however, shoppers have continued to flock to the web in increasing numbers. In fact, North American consumers adopted e-commerce so much that despite growing fears about identity theft, they spent $172 billion shopping online in 2005, up from $38.8 billion in 2000.
By 2010, consumers are expected to spend $329 billion each year online, according to Forrester Research. What’s more, the percentage of U.S. households shopping online is expected to grow from 39 percent this year to 48 percent in 2010.
In October 2010, an extension of B2C, B21 was coined (sometimes referred to as B2I). While B2C includes all manners of a business marketing or selling to consumers, B21 is specifically targeted towards an individual. B21 requires specific Personalization for that individual. B21 requires Insight in order to create the personalized experience.
B2C e-commerce went through some tough times, particularly after the technology-heavy Nasdaq crumbled in 2000. In the ensuing dotcom carnage, hundreds of e-commerce sites shut their virtual doors and some experts predicted years of struggle for online retail ventures. Since then, however, shoppers have continued to flock to the web in increasing numbers. In fact, North American consumers adopted e-commerce so much that despite growing fears about identity theft, they spent $172 billion shopping online in 2005, up from $38.8 billion in 2000.
By 2010, consumers are expected to spend $329 billion each year online, according to Forrester Research. What’s more, the percentage of U.S. households shopping online is expected to grow from 39 percent this year to 48 percent in 2010.
In October 2010, an extension of B2C, B21 was coined (sometimes referred to as B2I). While B2C includes all manners of a business marketing or selling to consumers, B21 is specifically targeted towards an individual. B21 requires specific Personalization for that individual. B21 requires Insight in order to create the personalized experience.
Tuesday, March 13, 2012
Targeting and Positioning
One of the most significant uses of industrial market segmentation
schemes is to make targeting and product positioning decisions.
Companies chose to target some segments and downplay or avoid other
segments in order to maximize their competitive advantage and the
likelihood of success.
“There is a critical difference in emphasis between target market and [target] audience. The term audience is probably most useful in marketing communication”. (Croft, 1999) Target markets can include end user companies, procurement managers, company bosses, contracting companies and external sales agents. Audiences, however, can include individuals that have influence over purchasing decision, but may not necessarily buy a product themselves, e.g. design engineers, architects, project managers and operations managers, plus those in target markets.
Croft quotes Friestad, Write, Boush and Rose (1994) as stating that because the purpose of advertising is to persuade, consumers become sceptical of its methods and approaches [and indeed intentions]. However, while this may be entirely true in consumer marketing, the level of trust and reliance on marketing communication by industrial customers is fairly high due to the professional experience and knowledge of the industrial buyer. Some even appreciate advertising because it keeps them informed of the products and services available in the market.
“There is a critical difference in emphasis between target market and [target] audience. The term audience is probably most useful in marketing communication”. (Croft, 1999) Target markets can include end user companies, procurement managers, company bosses, contracting companies and external sales agents. Audiences, however, can include individuals that have influence over purchasing decision, but may not necessarily buy a product themselves, e.g. design engineers, architects, project managers and operations managers, plus those in target markets.
Croft quotes Friestad, Write, Boush and Rose (1994) as stating that because the purpose of advertising is to persuade, consumers become sceptical of its methods and approaches [and indeed intentions]. However, while this may be entirely true in consumer marketing, the level of trust and reliance on marketing communication by industrial customers is fairly high due to the professional experience and knowledge of the industrial buyer. Some even appreciate advertising because it keeps them informed of the products and services available in the market.
Monday, February 20, 2012
Offensive marketing warfare strategies
In marketing and strategic management, marketing warfare strategies are a
type of marketing strategy that uses military metaphor to craft a
businesses strategy. See marketing warfare strategies for background and
an overview. Offensive marketing warfare strategies are a type of
marketing warfare strategy designed to obtain an objective, usually
market share, from a target competitor. In addition to market share, an
offensive strategy could be designed to obtain key customers, high
margin market segments, or high loyalty market segments.
[edit] Fundamental Principles
There are four fundamental principles involved:
1. Assess the strength of the target competitor. Consider the amount of support that the target might muster from allies. Choose only one target at a time.
2. Find a weakness in the target’s position. Attack at this point. Consider how long it will take for the target to realign their resources so as to reinforce this weak spot.
3. Launch the attack on as narrow a front as possible. Whereas a defender must defend all their borders, an attacker has the advantage of being able to concentrate their forces at one place.
4. Launch the attack quickly. The element of surprise is worth more than a thousand tanks.
[edit] Types of offensive strategies
The main types of offensive marketing warfare strategies are:
* Frontal Attack - This is a direct head-on assault. It usually involves marshaling all your resources including a substantial financial commitment. All parts of your company must be geared up for the assault from marketing to production. It usually involves intensive advertising assaults and often entails developing a new product that is able to attack the target competitors’ line where it is strong. It often involves an attempt to “liberate” a sizable portion of the target’s customer base. In actuality, frontal attacks are rare. There are two reasons for this. Firstly, they are expensive. Many valuable resources will be used and lost in the assault. Secondly, frontal attacks are often unsuccessful. If defenders are able to re-deploy their resources in time, the attacker’s strategic advantage is lost. You will be confronting strength rather than weakness. Also, there are many examples (in both business and warfare) of a dedicated defender being able to hold-off a larger attacker. The strategy is suitable when
o the market is relatively homogeneous
o brand equity is low
o customer loyalty is low
o products are poorly differentiated
o the target competitor has relatively limited resources
o the attacker has relatively strong resources
* Envelopment Strategy (also called encirclement strategy) - This is a much broader but subtle offensive strategy. It involves encircling the target competitor. This can be done in two ways. You could introduce a range of products that are similar to the target product. Each product will liberate some market share from the target competitor’s product, leaving it weakened, demoralized, and in a state of siege. If it is done stealthily, a full scale confrontation can be avoided. Alternatively, the encirclement can be based on market niches rather than products. The attacker expands the market niches that surround and encroach on the target competitor’s market. This encroachment liberates market share from the target. The envelopment strategy is suitable when:
o the market is loosely segmented
o some segments are relatively free of well endowed competitors
o the attacker has strong product development resources
o the attacker has enough resources to operate in multiple segments simultaneously
o the attacker has a decentralized organizational structure
* Leapfrog strategy -This strategy involves bypassing the enemy’s forces altogether. In the business arena, this involves either developing new technologies, or creating new business models. This is a revolutionary strategy that re-writes the rules of the game. The introduction of compact disc technology bypassed the established magnetic tape based defenders. The attackers won the war without a single costly battle. This strategy is very effective when it can be realized.
* Flanking attack - This strategy is designed to pressure the flank of the enemy line so the flank turns inward. You make gains while the enemy line is in chaos. In doing so, you avoid a head-on confrontation with the main force.
[edit] Fundamental Principles
There are four fundamental principles involved:
1. Assess the strength of the target competitor. Consider the amount of support that the target might muster from allies. Choose only one target at a time.
2. Find a weakness in the target’s position. Attack at this point. Consider how long it will take for the target to realign their resources so as to reinforce this weak spot.
3. Launch the attack on as narrow a front as possible. Whereas a defender must defend all their borders, an attacker has the advantage of being able to concentrate their forces at one place.
4. Launch the attack quickly. The element of surprise is worth more than a thousand tanks.
[edit] Types of offensive strategies
The main types of offensive marketing warfare strategies are:
* Frontal Attack - This is a direct head-on assault. It usually involves marshaling all your resources including a substantial financial commitment. All parts of your company must be geared up for the assault from marketing to production. It usually involves intensive advertising assaults and often entails developing a new product that is able to attack the target competitors’ line where it is strong. It often involves an attempt to “liberate” a sizable portion of the target’s customer base. In actuality, frontal attacks are rare. There are two reasons for this. Firstly, they are expensive. Many valuable resources will be used and lost in the assault. Secondly, frontal attacks are often unsuccessful. If defenders are able to re-deploy their resources in time, the attacker’s strategic advantage is lost. You will be confronting strength rather than weakness. Also, there are many examples (in both business and warfare) of a dedicated defender being able to hold-off a larger attacker. The strategy is suitable when
o the market is relatively homogeneous
o brand equity is low
o customer loyalty is low
o products are poorly differentiated
o the target competitor has relatively limited resources
o the attacker has relatively strong resources
* Envelopment Strategy (also called encirclement strategy) - This is a much broader but subtle offensive strategy. It involves encircling the target competitor. This can be done in two ways. You could introduce a range of products that are similar to the target product. Each product will liberate some market share from the target competitor’s product, leaving it weakened, demoralized, and in a state of siege. If it is done stealthily, a full scale confrontation can be avoided. Alternatively, the encirclement can be based on market niches rather than products. The attacker expands the market niches that surround and encroach on the target competitor’s market. This encroachment liberates market share from the target. The envelopment strategy is suitable when:
o the market is loosely segmented
o some segments are relatively free of well endowed competitors
o the attacker has strong product development resources
o the attacker has enough resources to operate in multiple segments simultaneously
o the attacker has a decentralized organizational structure
* Leapfrog strategy -This strategy involves bypassing the enemy’s forces altogether. In the business arena, this involves either developing new technologies, or creating new business models. This is a revolutionary strategy that re-writes the rules of the game. The introduction of compact disc technology bypassed the established magnetic tape based defenders. The attackers won the war without a single costly battle. This strategy is very effective when it can be realized.
* Flanking attack - This strategy is designed to pressure the flank of the enemy line so the flank turns inward. You make gains while the enemy line is in chaos. In doing so, you avoid a head-on confrontation with the main force.
Wednesday, January 11, 2012
Strategic management
Strategic management is a field that deals with the major intended and
emergent initiatives taken by general managers on behalf of owners,
involving utilization of resources, to enhance the performance of firms
in their external environments.[1] It entails specifying the
organization's mission, vision and objectives, developing policies and
plans, often in terms of projects and programs, which are designed to
achieve these objectives, and then allocating resources to implement the
policies and plans, projects and programs. A balanced scorecard is
often used to evaluate the overall performance of the business and its
progress towards objectives. Recent studies and leading management
theorists have advocated that strategy needs to start with stakeholders
expectations and use a modified balanced scorecard which includes all
stakeholders.
Strategic management is a level of managerial activity under setting goals and over Tactics. Strategic management provides overall direction to the enterprise and is closely related to the field of Organization Studies. In the field of business administration it is useful to talk about "strategic alignment" between the organization and its environment or "strategic consistency." According to Arieu (2007), "there is strategic consistency when the actions of an organization are consistent with the expectations of management, and these in turn are with the market and the context." Strategic management includes not only the management team but can also include the Board of Directors and other stakeholders of the organization. It depends on the organizational structure.
“Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment.
Strategic management is a level of managerial activity under setting goals and over Tactics. Strategic management provides overall direction to the enterprise and is closely related to the field of Organization Studies. In the field of business administration it is useful to talk about "strategic alignment" between the organization and its environment or "strategic consistency." According to Arieu (2007), "there is strategic consistency when the actions of an organization are consistent with the expectations of management, and these in turn are with the market and the context." Strategic management includes not only the management team but can also include the Board of Directors and other stakeholders of the organization. It depends on the organizational structure.
“Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment.
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