Blogs on Modern Marketing and Sales

We all know that corporate social responsibility is supposed to have a positive impact on society. It is seen as a way for companies to make genuine efforts to help improve communities. However, in recent years, there has been a slow rise in debates on whether CSR is now becoming a marketing gimmick used by businesses to earn more profits. This is because there have been some companies that use their CSR to strategically increase trustworthiness through positive imaging which then results in increased sales and profit. Is CSR Being Used as a Marketing Strategy? It can be a bit complicated to tell whether companies use CSR as a marketing strategy or not. However, the answer can often be determined based on the sincerity of the philanthropic efforts by companies. Here are some signs that show companies are using CSR as a marketing strategy. Over Exposure: You can notice whether the intention of a company behind their CSR initiative is pure or for marketing purposes based on the amount of exposure that they use to cover the event. For example, various newspaper personnel and photographers attend a small charity event of a company. The need for media attention can make you question the intentions right then and there. CSR Activities Before Product Launch: Another way that companies use CSRs as a marketing strategy is when they have a new product launch coming. They will use the positive attention from the CSR event to boost their trustworthiness to consumers. This will later translate into sales in the future. Let’s have a look at CSR vis-à-vis its internal and external environment. CSR and Employees: Research done by Cone Communications has shown that around 88% of millennials prefer a workplace that has strong CSR values. Another statistic revealed by Net Impact said that 53% of workers believe that working on a job that allows them to “make an impact” plays a key role in their happiness. There’s also another study saying that the more a company goes for social and environmental efforts, the more engaged the employees will get. CSR and Consumers: CSR has the ability to influence both investors and consumers. Research from Reputation Institute revealed that CSR makes up 40% of a company’s reputation. A number of companies that have the CSR approach, like Unilever for example, are able to gain a number of benefits such as increased growth and profits. On the other hand, companies that failed to properly implement CSR, such as Nike, have suffered from a lot of setbacks. According to Unilever, roughly 31% of consumers around the world prefer sustainable brands and think that businesses should change how they operate in order to align with environmental and social needs. CSR and Community: According to research, CSR activities that help develop downtrodden communities were perceived as having a positive impact. Therefore, people are inclined into buying products from such brands or companies as they believe that by doing so, they’re doing a part in helping society. However, CSR isn’t just about giving away to the community. It’s also about awareness of the way businesses do their operations. A few good examples of these are Google, Apple, Microsoft, Sony, and Lego. Even small companies like TOMS was able to capture the market’s attention by introducing its “one-for-one” model. Each time a customer buys a product from TOMS, he feels like he’s giving back to the community. By merging CSR into the business, TOMS has been able to give away more than 10 million pairs of shoes to kids in need around the world.The farther removed CSR is from the area of a company’s business, the more trust it will be able to generate. Meanwhile, the closer it is, the more sustainable it will be. However, the real challenge is how to get the balance right. This is exactly what a lot of companies that use CSR fail to achieve, and as a result, people think of their CSR as rather a gimmick. The Key Takeaway: It can’t be denied that there is a rising awareness and demand for CSR. It can give any business a major edge while also allowing it to make positive changes which can lead to a better world and a better future. Eventually, it should become intrinsic to the company’s being.However, the key giveaway between a real and marketing gimmick lies in a CSR project’s duration. Businesses that only aim to make more sales out of it tend to launch a project that lasts for 2-3 months every year.On the other hand, companies that really want to give back to the community believe that CSR is not just a responsibility but a duty as well. As such, their projects tend to be continuous without any timeframe at all. They’re all about building projects that are self-sustaining in order to continue serving the society.

Multi-level marketing or also referred to as network marketing is not a new phenomenon. It has been widely used by companies all over the world to advance their business. This type of business strategy has often been misunderstood, as it is greatly associated with the pyramiding scheme. However, the two are entirely different. With this article, let us get to know how successful businesses used this model and become effective in boosting their sales. What is Multi-Level Marketing? According to the US Federal Trade Commission, multi-level marketing or MLM refers to a business paradigm where a company dispenses products through a web of distributors who also earn income from their sales and sale made by the direct and indirect recruits of the distributor. This is a marketing strategy wherein each member in the multi-level marketing network receives a commission from the sales made by their recruits. Thus, every member of the network is motivated to continue recruiting more sales representatives to increase their income. What are the advantages and disadvantages of Multi-Level Marketing? As aforementioned, multi-level marketing has already been widely used for quite some time. Nowadays, it has become very popular because of the promising benefits that come with it. Let us get to know what are the advantages and disadvantages of this business marketing strategy. Advantages: Attractive Rewards: The main reason this business model is becoming all the rage these days is because of the promising rewards that come with it. Some companies offer top performers a good amount of cash, discounts, and even luxury cars. This is used not only to motivate the existing recruits to work more but also to entice possible recruits in a breeze. Smaller investment: With this business model, an individual gets the chance in the business world by only capitalizing a smaller amount of money as compared to starting in a typical business set-up. Everyone gets the chance to become successful in the business world with only a spare amount of money which is not that hard to lose in case the endeavor is unsuccessful. Supplemental Income: This type of business model can be used to gain additional income for almost everyone, even those who are working or stay-at-home parents. This is because the selling of the product or the recruiting of potential distributors can be done during breaks or free time and doesn’t really require full time. Balanced Compensation: Unlike corporate jobs where one either gets underpaid or overpaid, this type of business model gives you the compensation that is directly proportional to your efforts. This means the more work you do, the bigger the compensation you get. No Degree required: Unlike most corporate jobs nowadays that require a good educational background, this multi-level marketing model doesn’t need you to have a bachelor’s degree or the like. You just need to know the product by heart and exert more effort in recruitment and sales, and you get to be your own boss. Disadvantages: However, just like any business model, multi-level marketing also has its shares of flaws. Let’s get to know each of these flaws, as it may hinder you to become successful in the field. Good interpersonal and communication skills are a must: Not everyone is blessed to have good communication skills that can entice potential customers and recruits. With this model, you must have good communication and interpersonal skills to become successful. Get the right marketers: In order to get further compensation from recruits, you need to get the right marketer who shares the same passion and ideation with you. And with the skepticism in the market nowadays, finding the right recruit is a tough one. How does Multi-Level Marketing work? This business model is believed to be one of the safest business models because of the low risk it entails. But, this will mainly depend on the number of participants. For this marketing strategy to work, the MLM company hires some distributors first to start the trade. Then, the distributors are encouraged to recruit more distributors with the promise that every sale made by their recruits could bring the commission to the up line distributors. This will not only increase the sales of the company but will also save them big time on hiring costs. Is Multi-Level Marketing ethical? The business model itself is ethical. It gives the right compensation equivalent to the work done. However, by enticing recruits with promising rewards, they are more likely to take the short and faster route by deceiving people just to earn more. This gives the business model a bad reputation. Thus, it is essential for the company and the distributors to thoroughly explain the business and to ensure that it is compliant with the rules and regulations set by the government. Examples: Here are some of the well-known companies that have become successful with the multi-level marketing business model Mary Kay:Mary Kay has been using the multi-level marketing model since it was founded in 1963. The company hires independent beauty consultants who earn by direct selling to people and through the sales made by their recruited consultants in their distribution network. Avon Products, Inc.:Avon Products Inc. was founded in 1986 and also uses the multi-level marketing business model to increase their sales. They offer various items such as beauty products, fashion garments, jewelry, and so much more which are sold by a network of distributors. Herbalife Ltd.:Herbalife offers nutritional supplements, personal care and hygiene items, and even cosmetics. This was founded in 1980 and has been using the multi-level marketing strategy ever since. There have been allegations that Herbalife uses a fraudulent business model. But, it was not proven since the FBI don’t have sufficient evidence. Relevance of this business model in today's times. This strategy is a win-win for both the company and the distributor. The company gets to have more sales while shedding out less hiring costs. On the other hand, distributors also get to earn more from the usual income they get from their corporate jobs. Also, stay-at-home parents can take advantage of this; they can have the luxury of taking care of their family while earning more income for the family as well. This is applicable these days as the income one gets from his or her job doesn’t already suffice for the needs of the family. Thus, this model enables an individual or a family man or woman to earn more to meet family needs. Conclusion: In conclusion, knowing more about multi-level marketing gives you an idea of how the strategy works for both the companies and the distributors as well. Although it has its own shares of workable flaws, the benefits that you get to enjoy can convince one to start using the business model. However, you must not use the promising rewards to entice others into the network business without properly explaining as this may lead to deception in the end. Use this scheme to give you more income in a more flexible way. To upgrade your management skills in various functions of management, read the various titles of The Self Learning Management Series from Vibrant Publishers.

Learn how brands like Amazon, McDonalds and Amway build relationship with customers to grow their businesses. Every business or organization looking to expand usually seeks out ways and strategies to help them. Relationship marketing is a system on its own and involves developing a relationship geared towards advancing the interests of customers. This also means that potential customers are given special treatment rather than being seen as opportunities to make money. Furthermore, this type of marketing often leads to more than a 300% increase in qualified prospects. But it’s not all result and no work or plans. Strategies are important. Whether you’re keen on taking your online marketing plan to the next level or actively setting up other plans, your customers, new and old, stand to benefit richly. And if they’re happy, you’re happy. Here are four relationship marketing strategies you’ll find worth your time and effort. 1. Creating Quality Content for Your Customers: Chances are you’re familiar with the efforts of many companies to come up with content to promote their products. However, it goes beyond writing a few paragraphs. You want to connect with your customers with high-class content showing them why they remain essential to your business. Ensure whatever you write is for the benefit of the readers. Optimize your content in a way that fits right with their perspectives rather than yours. Furthermore, your content has to be the best value for the time potential customers might spend reading it. For example, Coca-Cola uses interactive contents to engage users, while IBM makes the best out of its many content marketing blogs to nail its relationship marketing strategies. Another impressive example is McDonalds’ ‘Question time’ which keeps readers engaged and waiting for more. The Washington Post’s list-based article is also an example worth imitating. 2. Listen to Your Customers: What are your customers trying to tell you? Do you even bother to listen? Well, this is an essential part of business, especially if you’re a relatively new brand. Sure, it’s an effort to listen, but it’s even more of a challenge to go ahead and put what you’ve heard to work. It’s highly beneficial to listen to customers even if all they have to say is tiresome. The key point is, they want to be heard. You can create measures or use software to know what people are thinking. A good example is PowerSurvey tool which helps you receive feedback from customers and potential clients. For example, if you’ve just sold a product or service to a prospect, you can follow them up to see how much of a help you’ve been to them. You’ll also receive pointers on how best to improve. Additionally, if it’s a physical location, you should never argue with a customer. Let them vent if they have to but don’t trade words. 3. Reward Customer Loyalty: Gifts, incentives, rewards, and the likes. Who doesn’t love them? It’s like a tit for tat because on one side; you have loyal customers who love your products and the service you deliver. Then there’s you or your business getting the patronage from them. It’s an excellent way to improve customer satisfaction. Give your loyal customers gifts, discounts and bonuses as a way of thanking them for choosing you. Relationship marketing is never the same without some giving back. Remember, loyal customers are part of your success story, and they drive up sales. Create platforms where they can get something they’ve always craved, and make the process simple so they can benefit. For example, Amazon Prime and Starbucks have developed platforms to reward loyal customers. By being somewhat lucrative, their customers refer them to other prospects who are just as eager to earn similar incentives. Also, the points program by The North Face, where users earn more points according to what they spend is an excellent example you can follow. 4. Networking: Take advantage of the contacts you make both online and offline to create a powerful network marketing strategy. Not only is it a great thrust in terms of relationship marketing, but it also exposes you and your business to a wide range of opportunities. With the interests you have, you can link up with other people, groups, and businesses that share them. Think of it as a sort of fellowship geared toward advancing your business interests, and meeting the needs of your teeming customers. Amway is a good example of a brand using this strategy to increase engagement with its customer base by joining up with others to create ideas that solve a plethora of issues. More so, it’s not as difficult to begin. You need a clear plan and a decision to link up with those that share your business affinities. These are four proven ways to bring out the best in your quest for better relationship marketing. In your bid to generate more ROI, implement these strategies, and watch your business grow. Remember, the customer is king! Grab a copy of Marketing Management Essentials You Always Wanted To Know to understand more about customer relationships in the context of marketing management.

Loyalty Programs are structured marketing programs, which are built into a brand’s marketing and promotion plan with the objective of rewarding repeat purchases (of the services or products of the brand) by the customer who thereby shows loyalty to the brand. The development of loyalty programs as a marketing strategy was chronicled and boosted by the intense, yet healthy competition in the global business environment.  At first, many businesses, entrepreneurs and companies embraced it, but few actually practiced it. Following its success to increase sales and improve customer retention, the practitioners, onlookers and critics became religious converts; they not only accepted but believed in it.  What are the questions you must ask yourself before starting a loyalty program for your brand? Does your brand really need a loyalty program? Or is it being implemented because your competitors are using one? For example, loyalty is almost non-existent for any branded food because the cost of trying out newer brands of foods is not very high and customers are bound to do so. In this scenario, pumping in efforts into a loyalty program may not be very worthwhile.   If you have decided to use loyalty programs, are your efforts directed in the same direction? What would be the cost, time and resource allocation implications of such a program? Is your front end staff ready and trained to service and “DELIGHT” these newly acquired and “Brand Loyal” customers? It is important for your employees to have a good knowledge of customer relationship management in order to implement a solid and successful Loyalty Program. It is imperative to prepare new managers and leaders with the knowledge of building blocks of CRM as well as various facets of CRM. Advantages of Loyalty Programs 1) Entices New Customers In most cases, a loyalty program is geared towards rewarding existing customers. But as a natural consequence, a customer-centric loyalty program will, undoubtedly, attract new customers to your business, product or services. Potential clients or customers will be attracted to your offer and may purchase your product if they are convinced. They will get free products, discounts or rewards in the future. A report by B2B International, a global market research firm, shows that such clients or customers might even become “fans” and eventually refer other clients to your business. This opens up the door for an opportunity to integrate the loyalty program with a customer referral program – It’s a WIN-WIN for all! 2) Increases the rate of customer retention Perhaps the single, most important benefit of the customer loyalty program is its potential to increase customer retention rate. This program, in its different forms, allows customers to feel valued and appreciated. Consequently, this gives your customers good reasons to stay with your business to receive even more discounts, giveaways or rewards. “Businesses that increased their expenditure on customer retention over the past one to four years had a 200% likelihood of increasing their market share”, Forbes reports. Your loyalty program, therefore, should be designed as bait to incentivize additional purchases while also increasing customer retention. 3) Provides Useful Database for Marketing and Enhances Customer Engagement During your company’s loyalty program, customers are required to fill out a form with their details, and this serves as invaluable input for database marketing. From their data, you can evaluate customer behaviour, preferences and buying behaviours. In fact, professional marketers use these details in different ways, from pricing and inventory management to tailoring their products or services to a particular group of people. A professionally designed loyalty program enables businesses to differentiate profitable buyers from unprofitable ones. Moreover, a loyalty program enables direct, effective and two-way communication with a company’s customers. The company can disseminate new product information, benefits and features to its customers directly and the customers can convey valuable feedback about the product or service to the company. This simplifies the brand promotion and awareness efforts and increases loyalty by introducing actionable insights consistently. Thus, a loyalty program enables a business to keep its customers effectively and consistently engaged with its brand at a comparatively low cost. 4) Emotional Connect with the Brand Over time the customers develop an emotional connection with the brand and are “Customers for life”, for the business. A good loyalty program increases customer stickiness, and such customers hardly ever try out newer products as they have a sense of trust and reliability for the brand. This denotes the true success of any loyalty program. Disadvantages of a Customer Loyalty Program 1) Time and Money Involved A well-planned loyalty program provides a service, product or an offer that people actually want to buy. Running a loyalty program takes away time and resources from the other parts of the business, and this may or may not be worth the effort. Hiring a professional marketer or deploying a technological system requires extra costs. 2) Customer Satisfaction gone wrong! Loyalty programs may boomerang right back if the rewards fail to match up to the promises made by the company. For the loyalty program to gain popularity, the brand has to offer genuine discounts and rewards (both tangible and intangible) else the program might foster distrust and create a bad reputation for the brand. Losing your customers to your competitors, and that too, your most loyal ones would prove to be doubly unfortunate. Concluding Thoughts There is no doubt that the pros of loyalty programs outweigh its cons. You will experience a successful and profitable loyalty program if you strategically and carefully launch the program. However, it would help if you had expert advice and professional marketers for your business to retain more loyal customers. To understand more about customer relationships in the context of marketing management, grab a copy of Marketing Management Essentials You Always Wanted To Know.