Marketing mix part 2

Four Cs: in the seven Cs compass model

After Koichi Shimizu proposed a four Cs classification in 1973, this was expanded to the seven Cs compass model to provide a more complete picture of the nature of marketing in 1981. It attempts to explain the success or failure of a firm within a market and is somewhat analogous to Michael Porter's diamond model which tries to explain the success and failure of different countries economically.

The seven Cs compass model are:

•    (C1)Corporation– The core of four Cs is corporation (company and non profit organization). C-O-S (Organization, Competitor, Stakeholder) within the Corporation. The company has to think of compliance and accountability as important. The competition in the areas in which the company competes with other firms in its industry.

The four elements in the seven Cs compass model are:
•    A formal approach to this customer-focused marketing mix is known as Four Cs (Commodity, Cost, Channel, Communication) in “the seven Cs compass model". The four Cs Model provides a demand/customer centric version alternative to the well-known four Ps supply side model (product, price, place, promotion) of marketing management.
o    Product = Commodityo    Price = Costo    Place = Channelo    Promotion = Communication

•    (C2)Commodity – (Original meaning of Latin: Commodus=convenient) : the goods and services for the consumers or citizens. Steve Jobs has been making the goods with which people are pleased. It is not "product out".

•    (C3)Cost – (Original meaning of Latin: Constare= It makes sacrifices) : There is not only producing cost snd selling cost but purchasing cost and social cost.

•    (C4)Channel – (Original meaning is a Canal) : marketing channels. Flow of goods.

•    (C5)Communication – (Original meaning of Latin:Communio=sharing of meaning) : marketing communication : Not only promotion but communication is important.

The compass of consumers and Circumstances (environment) are:
•    (C6)Consumer – (Needle of compass to Consumer)
The factors related to consumers can be explained by the first character of four directions marked on the compass model. These can be remembered by the cardinal directions, hence the name compass model:
o    N = Needs
o    W = Wants
o    S = Security
o    E = Education (consumer education)

•    (C7)Circumstances – (Needle of compass to Circumstances )
In addition to the consumer, there are various uncontrollable external environmental factors encircling the companies. Here it can also be explained by the first character of the four directions marked on the compass model:
o    N = National and International
o    W = Weather
o    S = Social and Cultural
o    E = Economic
These can also be remembered by the cardinal directions marked on a compass. The seven Cs compass model is a framework in co-marketing (symbiotic marketing). It has been criticized for being little more than the four Ps with different points of emphasis. In particular, the seven Cs inclusion of consumers in the marketing mix is criticized, since they are a target of marketing, while the other elements of the marketing mix are tactics. The seven Cs also include numerous strategies for product development, distribution, and pricing, while assuming that consumers want two-way communications with companies.

Marketing mix

Marketing mix is a tool used in marketing. It is one of the crucial instruments when trying to determine a product or brand. The most associated acronym used is four Ps, although it has been sometimes expanded into seven Ps or even eight Ps in order to better address different products.
In recent times a concept of four Cs has also been introduced with the intention of replacing the four Ps. Today there are two four Cs theories out there – Lauterborn and Shimizu.

Classic definition of four Ps is: Price, Product, Promotion and Placement.
The four Cs definition is a bit trickier since there are two theories out there.

Four Cs: the consumer-oriented model
Robert F. Lauterborn introduced a four Cs classification in 1993 which is a more consumer-oriented version of the four Ps that attempts to better fit the movement from mass marketing to niche marketing:
•    Product part of the four Ps model is replaced by "Consumer“, shifting the focus to satisfying the consumer needs. By defining offerings as individual capabilities that are combined and focused to a specific industry, the result is a custom solution rather than the pigeon-holing of a customer into a product.
•    Price is replaced by "Cost", reflecting the total cost of ownership. Many factors affect Cost, including but not limited to the customer's cost to change or implement the new product or service and the customer's cost for not selecting a competitor's product or service.
•    Promotion is replaced by "Communication", which represents a broader focus. Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the organization and the consumer.
•    Placement is replaced by "Convenience". With the rise of Internet and hybrid models of purchasing, Placement is becoming less relevant. Convenience takes into account the ease of buying the product, finding the product, finding information about the product, and several other factors.

Second four Cs theory will be explained in the next article.

The Business Plan

I have written in quite a bit of detail how to write a business plan. But I know that there are some of you who are more of audio types :)
So I tried to make it easier for you!
I found this nice video of a presentation held at Stanford University by Jim Ellis.

Enjoy the viewing! And remember - we are doing this for you!

10 Great Business Ideas

What is one single thing every business must have? A business idea! Without an idea about what to do you can't do anything.
Therefore I have searched near and far in order to try and present 10 great business ideas that just could be the next great thing.
Here comes the list.
1. App development - apps are still the craze. Whether we are talking about Android apps or iPhone apps it doesn't matter really. The potential is great just get there and make the new Angry birds!

2. Online selling - the business is moving to the web, or should I say "into the Cloud" :) Anyway the online shopping is increasing by leaps and bounds. Why not turn your focus on online shop instead of the classic store? The costs are definitively lower, the potential market is bigger, so what are you waiting for?

3. Online booking/travel agency - people like to travel but are usually lazy to walk from door to door in order to get all the information (sort of a paradox). Give it to them all - from the comfort of their couch.

4. Translations - world is getting smaller but still we are not all speaking a same language. Brazil, Russia, India and China are getting stronger and stronger but most of the business is still performed in English. Translations from and to those languages are high in demand!

5. Bike rental - many cities worldwide don't have any kind of bike rental. On the other hand people are more and more environmentally conscious. Let them use a bike for a fee! So instead of buying a bike and worrying whether it gets stolen they just rent it and drive it!

6. Children's clothing - I'm talking handmade. One of my teachers told me long ago - when you start a business make children your target market. People will always buy stuff for their kids. So in order to be different from the mass manufactured items start a small production of handmade kids clothes.

7. Instructions - If you have extensive knowledge in a certain field why not teach people? It is a great and rewarding job.

8. Property management - once again back to traveling. More and more people are looking for apartments they can rent for a couple of days when traveling. Why not organize people who have empty apartments, offer them revenue, and you take care of cleaning and guest, for a fee of course!  

9. Blogging - yes that's exactly what I am doing, blogging. Don't be fooled that it is an easy job. You can make money from blogging but you have to be innovative and interesting and proactive.

10. Farming - no I am not talking about acres and acres of wheat. Find a vegetable (or a fruit) for which there is a demand and it pays good. Also take care how much crops will yield, when and how often. Start small with couple of plants and grow organically (pun intended) as you gain revenue.

That's all folks! Those are my ideas. And just so you don't think that I'm all talk I'll let you in on little secret. Of these ten ideas I am actually working on 4. Trying and believing in success. So there you have. 10 great business ideas you have to try.

Lawyers and attorneys

Yep, when you are running a business sooner or later you will have to cope with some kind of a legal problem. Lawyers will rip you off no matter what side you are on. The one suing somebody or being sued by somebody. Lets face it - it is a fact of life. Now you can try and do your best to avoid such situations but just remember some stupid lawsuits. For instance do you remember the woman who spills coffee on herself and went on to sue McDonalds for millions in damages? And now McDonalds puts a warning sign on every coffee cup so it wouldn't happen again. But who is to say that you won't forget such a small thing and end up getting sued for something similar. On the other side what happens when somebody doesn't pay you for products or services provided to you? You will sue them of course. And once again lose money for lawyers, for court expenses for misses income, for your time etc. You can't escape it you can just take care.
I have a friend who writes about lawyers so for more things on that topic visit his site:  http://accidentlawyerlouisianatruck.org/

TOP 5 Mistakes

Businesses make mistakes. That is a part of everything we do in life in general. We make mistakes. That is true. Many times I have heard the saying: "Smart people learn from their own mistakes, but wise people learn from other people's mistakes". So in accordance with that saying I have found an interesting video that will help you to learn from other people's mistakes and become therefore much wiser.

Running a successful business

When running a business there are some factors you need to have in mind in order to run it successfully.
First of all you have to have a vision. Having a clear vision of what you want your business to be like is a crucial thing. What do you want known for? What do you want to provide to the market? What is your target market? Will you settle for second place or are you going to the top? Try and answer these questions and you will be able to define which way you should take.

Now you have to develop a plan that will fulfill your vision. After defining what your vision is you have to have a plan for it to come true. Many, many people know what they want their business to be but never develop a plan they can follow. Take your time and do it!

Get to know your market. That is one of the most important aspects of running any type of business. You can't cater to everyone, you have to know your target market. If you try to please everybody you will please nobody!

Visibility, visibility, visibility! Focus on your target market. Just knowing what and who it is is not enough. You have to approach your target market and get them to know about you. You can try e-mails, advertisement, newsletters, direct marketing and what not. But you have to make sure people know about you!

If you have more people involved in your business you have to do just that. Involve them! Let you staff know what you are doing, why are you doing it and for whom you are doing it. Encourage them to express their ideas. Sometimes they might have a different perspective on things and that could help you a lot. Also if you want your staff to follow your vision talk to them about it. Let them know what you are trying to do. Make them understand it and see that you need them and that they need you.

It is important to note that running and promoting your business never ends. It is an ongoing process. People usually make a mistake is that they try once and expect instant success. It doesn't work that way. You have to keep on going and keep on pushing forward.

You also have to realize one thing. The most important things. Your business is out there to change peoples lives! Sounds like exaggerating? Well I wasn't talking about changing the world or abolishing world hunger and realizing world peace. Bear with me for a second. Whatever you do, no matter how small or insignificant it might seem, it does influence other people. Whatever product or service you provide people who purchase it from you have their lives changed. For instance if you open a local grocery store and make it part of your vision to always greet customers with a smile and a kind word will make those people feel happier. Isn't that changing lives?