Archive for the ‘Marketing and Branding’ Category

Growing a Subscription Model Business

Thursday, June 20th, 2019

by Justin Grensing, Esq., MBA

 

content marketing, content management, newsjacking, social media, digital marketing, SEO, online marketingWith an up and down history dating back to the 1960s, the software-as-a-service or SaaS model has become the norm in tech-centered industries over the last couple of decades. With a SaaS model, providers of various applications or data storage capabilities allow end-users to remotely access the application or data. This is in contrast to models many of us were familiar with in the 1990s and 2000s where you would purchase an operating system software and install it via CD on a personal computer, for example.

In an article for Entrepreneur, Thomas Smale writes that the SaaS model has moved further and further toward a subscription model and suggests several subscription model-oriented growth strategies. These aren’t strategies only for very large, enterprise organizations. Even the smallest businesses, or solopreneurs, can leverage the subscription model to build sales. (more…)

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General Mills Boosts Earnings by Raising Prices

Tuesday, June 18th, 2019

by Justin Grensing, Esq., MBA

 

Where to price products and services is a key part of any business’s marketing and finance strategies. Economic theory includes multiple strategies for pricing, depending on broader business goals. For example, a company looking to maximize profit will try to set its marginal revenue—the revenue received from one additional unit of sale—equal to marginal cost (the cost associated with one additional unit of sale). A company trying to maximize sales will focus on average costs and revenue. The point where they meet is the sales maximizing point.

Of course, these are economic theories, and how these strategies play out in the real world is anything but certain.

(more…)

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Daimler Learns About Viral Customer Service Stories the Hard Way

Thursday, May 30th, 2019

There’s an old saying in customer service that a customer who has a good experience with your business might tell a single friend while a customer who has a bad experience will tell ten. Unfortunately, those numbers might be drastically out of date in the age of social media. In an era where any individual has the chance to communicate with millions of people around the world, even a single incidence of poor customer service can have significant impacts for businesses of any kind. (more…)

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Google’s EU Fines Illustrate Key Business Concepts

Wednesday, May 29th, 2019

by Justin Grensing, Esq., MBA

Google has not had a great couple of years in Europe. In March, the company was fined 1.5 billion euros—roughly $1.7 billion—for antitrust violations in the online advertising market. This represents the third such fine against the tech giant since 2017. “With the announcement on Wednesday, the European fines against Google total roughly €8.2 billion, or $9.3 billion,” says an article by Adam Satariano for the New York Times. “But the bloc has not received any of the money yet; Google is appealing the earlier decisions, and is mulling whether to appeal the most recent ruling.”

These fines provide some interesting business lessons relevant to any industry. (more…)

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What Beer Companies Can Teach Us About the Dangers of Publicly Attacking Competitors

Tuesday, May 28th, 2019

The growth strategyand corresponding marketing strategyof a company has a lot to do with the nature of its industry. When a new market is developed or discovered, we say there is a blue oceanan unmet demand in a market that isn’t served or is vastly underserved. Market share and sales can be increased by simply letting consumers know that a product or service exists and convincing them that they want the product. By contrast, in a red ocean, the market and the major players are already established, and the market is saturated. The only way to increase market share is to take market share from a competitor. That can be exceedingly difficult to do. (more…)

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Forget Disruptive Innovation: How NON-disruptive Innovation Can Help You Expand Your Market

Monday, May 27th, 2019

Many of us are familiar with the concept of disruptive innovation: a new product or service enters the market and overthrows established competitors by fundamentally changing the paradigm. Common examples include the advent of the automobile, the personal computer,  or direct streaming services. But, do we really need to be disruptively innovative? (more…)

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Amazon Zigs When Others Zag: Meeting Consumer Needs Before They Know They Have Them

Thursday, April 4th, 2019

by Justin Grensing, Esq., MBA

 

Amazon has proven time and again to be particularly adept at figuring out what its customers want and giving it to them. Whether it’s shopping suggestions based on previous orders, on-demand media content or same-day delivery, the retail giant answers the demands of the people whose purchases are lining its pockets.

The latest example of this as-you-wish mentality was recently announced and reported in an article for CNN by Taylor Nicole Rogers titled “Amazon’s new waste-reduction strategy: Delivery only once a week.” (more…)

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Bye Bye Blockbuster?

Thursday, March 28th, 2019

by Justin Grensing, Esq., MBA

 

For countless Americans, a trip to the local Blockbuster in the hopes of renting one of the copies of the latest hit movie to be released on VHS or DVD or to browse older favorites and film classics was a part of the Friday or Saturday night ritual for years.

But as technology and delivery methods evolved, Blockbuster and other video stores started to lose market share to then-mail-delivery-based Netflix as well as DVD rental kiosks before seeing further erosion from video streaming services. As Michelle Lou and Saeed Ahmed write for CNN, the iconic brick-and-mortar movie rental chain is still hanging on. But just barely. After the recent closing of a Blockbuster store in Australia, the Blockbuster in Bend, Oregon became the last one open on earth.

(more…)

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When Your Brand is the Victim of an Epic Fail

Tuesday, March 5th, 2019

 

20846299 - typography illustration poster of brand management wordsby Justin Grensing, Esq., MBA

Companies spend big money on celebrity endorsements. Nike alone spends billions of dollars on celebrity endorsements each year. Sometimes, the endorsements simply serve to bring publicity to a brand. Or they may entice consumers who want to emulate celebrities they respect. “A Taiwanese study shows that consumers show greater recall of products that have been endorsed by celebrities—regardless of whether they are actual fans or not,” says Guided Selling. (more…)

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Tesla Charging Stations: Real-World Example of Barriers to Entry

Tuesday, February 26th, 2019

by Justin Grensing, Esq., MBA

 

Tesla, the electronic vehicle (EV) company headed by high-profile billionaire Elon Musk, is a fascinating organization in many ways. The media has recently been excited about the company’s back-to-back quarterly profits. Despite the company operating in the red for so long, observers love to root for the revolutionary company. It’s also interesting to look at Tesla from a business strategy standpoint. For example, Tesla is widely recognized for the way it generates intense customer loyalty. (more…)

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