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7. Sustainable business models

Anders Parment Kogan Page ePub


Sustainable business models

Car buyers will take advantage of increased market transparency and there appear to be few other ways to create sustainable profitability than to keep costs under strict control or deliver customer value through superior functionality or an emotional appeal reflected in a strong auto brand. Key to creating a business model that is sustainable is marketing intelligence. However, marketing intelligence is reactive: a problem at hand is defined and a research process is launched, with data collection, customer clinics, project and board meetings and, finally, a new product offer or approach is made by which time the competitive situation has changed and again, reactive methods are applied to adjust the solution to the new market situation.

Car managers need to understand this problem along with influences on buyer behaviour such as demographic and geographic changes, consumer environmental concerns, popular culture, etc. This chapter provides tools and examples that illustrate how consumers and their attitudes are influenced by what happens in the environment and how these things can be used to develop more sustainable business models.

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Medium 9780749471088

02: Scarcity to Abundance

Grant Leboff Kogan Page ePub

As technology and the web play a greater part in our lives, we are seeing a shift in the dynamics of scarcity and abundance. Think back to 1990, the year the first-ever communication took place over the web.1 At the time, most people probably thought that they had a lot of choice and access to information. Yet, relative to where we are today, this was not the case. For example, here are some of the ways in which UK consumers were limited in choice at that time:

   •  Sky TV was less than one year old, having started on 5 February 1989.2 It had only a million subscribers, leaving virtually the entire UK population with a choice of only four terrestrial television channels.

   •  The European air industry was going through deregulation, a process that did not finish until 1 January 1993.3 EasyJet was not to launch until 19954 and although Ryanair flew its first low-budget flight in 1986,5 the choices in low-cost air travel that we enjoy today were not available.

   •  There were only two landline telephone providers, BT and Mercury, with the latter enjoying only 3.5 per cent share of the residential phone market.6 Therefore, almost everybody’s telephone was provided by British Telecom.

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15 Perception

David Pearson Kogan Page ePub


Perception is all there is.


Humankind cannot bear very much reality.


Perception is the act of recognition or comprehension by the observer. It may come through the senses or the mind. It may not be correct but it is what matters. How a customer Perceives the Product or service they are being invited to buy is all important. The good marketer understands that it is not the message but what is received that counts. This is not only about communication but about all the ways in which a Product is presented to the market. In today’s world of instant feedback on Twitter and Facebook it is even more important because carefully crafted communication strategies can fall at the first hurdle if a different Perception develops in the market.

Facts are secondary to Perception. As has been said many times by many commentators, Perception is reality. As Oscar Wilde said, ‘Believe nothing of what you hear and absolutely nothing of what you see.’ Here are a few facts that may surprise:

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4. Consumers as advertising creatives

Fons Van Dyck Kogan Page ePub


Consumers as advertising creatives

The new spirit of the age, which favours the empowerment of both citizens and consumers, combined with the rapid rise of social media, has resulted in a world where individual consumers can give free rein to the development and sharing of their creative talents. They can even become a brand in their own right and can certainly help to make or break other commercial brands. Media attention is what they are seeking. But what is the real brand value of user-generated advertising in todays modern market and how can marketing and communications professionals succeed in transforming the consumers creative inspiration and energy into a positive process? And are user-generated campaigns really more credible than classic campaigns?

What exactly is user-generated content (UGC)? The name says it all. It is content created by members of the public about the brands they use. In other words, it is free and not created by professionals. Moreover, it is content that is made available to a wider public by media such as the internet. Or up to a point because not all UGC is freely available and accessible to everyone, since sometimes it will be reserved for the eyes and ears of a closed community.1

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Medium 9780749470432

Part One Boardroom risk concerns and strategies

Jonathan Reuvid Kogan Page ePub


Beyond resilience: turning volatility and uncertainty into business opportunity


Organizations around the world have been compelled to operate in an environment of increasing volatility, uncertainty, complexity and ambiguity; hence the coining of the acronym, VUCA. Companies face the risk of sudden, severe events as evidenced by recent incidents in Ukraine, concerns over the eurozone and market wobbles stemming from a slow down of the Chinese economy. Sudden and unexpected events in remote locations can affect, and have already affected, company operations and supply chains.

This vulnerability extends to natural disasters. The eruption of the Eyjafjallajkull volcano in Iceland in 2010 affected air travel for weeks, sending some travellers on round-the-world routes simply to return home. Superstorm Sandy, which hit the north-eastern United States in October 2012, caused an estimated $3050 billion in property damage and effectively shut down most of lower Manhattan.1 And in 2013, natural disasters in China cost the country $68 billion, nearly double the total from the previous year.2

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