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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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   Name: ADHAM ARSHAD KHAN

NCC Education ID Number: 00167453

Centre: Centre of Management and Applied Sciences

'

Table of contents

' Statement and confirmation of own work Page 1

' Title page Page 2

' Task 1 Page 4

' Task 2 Page 8

' Task 3 Page 14

' Task 4 Page 17

' Task 5 Page 20

' References Page 23

'

Task 1:

What is 'Marketing'?

Marketing are exercise of an organization related with buying and selling a product or service. It includes advertising, selling and delivering products to people.

Investopedia.com (2005) 'Marketing', in Available at: http://www.investopedia.com/terms/m/marketing.asp (Accessed: 9 November 2016)

It includes the 4 P's which are:

' Product

' Price

' Place

' Promotion

The online marketing plan:

   Target Customers:

Firstly, we should know who are target customers are. BWB's main customers are local businesses and wholesalers who buy products from BWB on bulk.

Product Pricing:

As BWB has a high total cost of producing a product, I think they should use price skimming. Price skimming means charging a high price for new products for a short period of time. The advantage of this is that its helps establish the product as a must have item.

Unique Selling Point:

Having a USP is actually very important as it distinguishes your company from competitors. BWB's produces their window blinds in a made-to-measure basis which means they produce according to customer's specifications and this ultimately makes it their USP.

Distribution Plan:

BWB's distribution plan shows how customers buy from them. The e-commerce website will allow the customers to order the window blinds online. Moreover, there are many ways to reach the customer. But the best way for BWB is to deliver the products directly to the customer. Not only this will create extra costs such as purchasing vehicles but extra money can be made when customers are charged for delivery costs. Available at: http://www.forbes.com/sites/davelavinsky/2013/09/30/marketing-plan-template-exactly-what-to-include/#467a1e603b82 (Accessed: 9 November 2016). Logistics activities are also part of the distribution plan which includes receiving the product, warehousing, inventory control and finally distribution of the finished goods.

Advertising Plan:

For advertisement, BWB can use:

' Banner ads:- Banner ads are usually rectangular advertisements which can be found in vast majority of websites

' E-mails:- BWB can use electronic mail to promote their products online.

' PPC or Pay per Click: - This method of advertising takes away all the risk because you're actually promoting for free. BWB will only pay for the people who click the advertisement.

The 4 types of online advertising (2009) Available at: https://www.openglobal.co.uk/articles/223-the-4-types-of-online-advertising.html (Accessed: 9 November 2016)

Product Improvement:

One of the reasons why customers stopped buying windows blinds from BWB is that the product doesn't satisfy them anymore because competitors have better products. For this, BWB should upgrade their products by improving packaging, adding more features, redesigning or improving the quality of the product.

In conclusion, BWB's online marketing activities should replace its current marketing activities.

    What is 'market segmentation'?

Market segmentation is where the market has been partitioned into groups of consumers who have comparative needs or wants. For example, children below 19 years or group of females in the age group 16-25 years.

Basis of segmentation:

' Demographic segmentation ' products can be made by age or income.

' Geographic segmentation ' helps attract wholesalers worldwide.

' Psychographic segmentation ' products can be made as per a person's lifestyle or personality.

   

    Roles of segmentation:

' To decrease chances in choosing where, when, how, and to whom an item, service, or brand will be showcased.

' To build promoting proficiency by coordinating exertion particularly toward the assigned fragment in a way reliable with that section's qualities.

The importance of market segmentation (2016) Available at: https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/consumer-marketing-4/market-segmentation-36/the-importance-of-market-segmentation-187-4063/ (Accessed: 9 November 2016)

For an online business, the market is segmented into 3 groups which are:

' Buyers

' Shoppers

Buyers are actually the ones who purchase the product online and shoppers are the ones who just look up the product online to get more information about it.

What is 'branding'?

Branding is the procedure involved in making an interesting name, slogan or symbol. For example, ZARA, Nike etc. Branding is also a way to add value which helps to build up customer loyalty.

Why branding is important when launching an e-commerce website?

' Unmistakably conveys the message

' Affirms your validity

' Candidly associates your objective prospects with your product as well as your service

' Motivates the customer to buy the product

' Builds up customer loyalty

' Helps bring back the old customers who stopped buying from you

Lake, L. (2016) Why Branding is more important than ever. Available at: https://www.thebalance.com/why-is-branding-important-when-it-comes-to-your-marketing-2294845 (Accessed: 9 November 2016).

What is a 'domain name'?

Domain names are actually utilized to distinguish IP addresses to make it easier for people to understand.

Beal, V. (no date) What is domain name? Webopedia definition. Available at: http://www.webopedia.com/TERM/D/domain_name.html (Accessed: 9 November 2016).

   Which domain name should BWB use?

I recommend BWB to use 'bespokewindowblinds.com' as its domain name.

Why bespokewinowblinds.com?

' It reflects the business's name

' Easy to understand for the customers

' Having a domain name helps to spread the name of BWB

 How the marketing plan can build up customer loyalty and assist in the retention of customers?

The product life cycle:

com, N.A. (2002) Product life cycle. Available at: http://www.netmba.com/marketing/product/lifecycle/ (Accessed: 9 November 2016).

The product life cycle shows how the sales of the product fluctuates through a period of time. The decline stage indicates that the sales of the product will fall drastically. To overcome this, product extension strategies should be used.

Product extension strategies include:

' Modifications of the marketing mix ' price, promotion and distribution channels

' Modifications of the product ' change in the design, better quality and new features

' Encouragement of increased usage ' new and varied uses

' Changing the packaging of the product

The use of these extension strategies can build up customer loyalty, can attract back the old customers from the competitors and prevent current customers to buy from competitors.

Ways of customer retention and building customer loyalty:

' Promotions such as buy one get one free, coupons, discounts, free offers and credit facilities

' Keep in touch with the customer and build a good relationship with them through social media

' Improve after sales services

' Consider payment options like Cash on delivery or by credit card.

Building customer loyalty is vital for BWB or any business because the customers are the main source of income.

What is a PSP or Payment Service Provider?

A payment service provider basically offers shops online services for tolerating electronic payments by an assortment of payment techniques which includes credit cards, direct debit, bank transfer etc.

Payment service provider (2016) in Wikipedia. Available at: https://en.wikipedia.org/wiki/Payment_service_provider (Accessed: 9 November 2016).

Three payment service providers in Saudi Arabia:

1. Payfort

Features

' Protects business against fraud:

Credit card fraud can cost an organization a lot of money if management is not handled. Payfort also offers fraud avoidance devices that will assist the risk management team to protect your business against online fraud.

' Allows offline payments for customers:

If customers are not interested to pay by credit card then they can pay offline through SADAD.

' Relationship with the business doesn't end after integration:

Payfort's managers will keep an eye on a business's financial state and will help increase the turnover of the business.

Online payment gateway (2014) Available at: http://www.payfort.com/ (Accessed: 9 November 2016).

2. ALAHLI ePay

Features

' Supports varieties of cards:

ALAHLI ePay supports cards such as VISA, MasterCard and EMV. Moreover, all the exchanges which occur online are real-time and use VISA and MasterCard approval.

' Supports numerous currencies:

ALAHLI ePay not only supports the Saudi Riyal but also accepts other currencies such as the US Dollars, GB Pounds and EU Euros.

' Merchant services:

ALAHLI ePay allows its merchants to access services such as online transaction management, generating reports and accessibility to configure security and account settings.

Online credit cards payments processing (2016) Available at: http://www.alahli.com/en-us/business-banking/business-banking-services/Pages/AlAhli-ePay.aspx#Features--Benefits (Accessed: 9 November 2016).

3. Paytabs

Features

' Quick deposit of funds:

To stay aware of customers and suppliers, money is deposited in your as fast as two-business days.

' Acceptance of numerous currencies:

Customers are given freedom to use any card anywhere in the world so paytabs supports 168 currencies.

' 24/7 integration

Paytabs will completely integrate your system and you can start receiving payments securely within a day.

 Available at: https://www.paytabs.com/  (Accessed: 9 November 2016).

Three Payment Service Providers that BWB can use is Payfort, ALAHLI ePay and Paytabs. All these PSPs are highly reliable but BWB should choose one out of the three which will benefit them the best. I would recommend BWB to choose Payfort because their major advantage above other PSP's is that they allow the business's customers to pay offline through SADAD. Moreover, another main advantage of Payfort is that they continue the relationship with the business even after integration. Furthermore, they pay attention to the financial situation of the business which indicates that they show care for its clients. In conclusion, BWB should go for payfort for its major advantages above its competitors.

What is 'phishing'?

Phishing tricks are ordinarily fake email messages seeming to originate from true blue ventures (e.g., your college, your Internet service supplier, your bank). These messages typically guide you to a ridiculed site or generally motivate you to reveal private data (e.g., passphrase, MasterCard, or other record overhauls). The culprits then utilize this private data to submit fraud.

 Available at: https://kb.iu.edu/d/arsf (Accessed: 9 November 2016).

What is 'spear phishing'?

Spear phishing is also a way of snatching information from computers through but targets one specific person or a few people.

What's the difference between phishing and spear phishing?

Both phishing and spear phishing have the same consequence but the difference is that phishing targets large group of people. Hackers do this so that they might have good chances of getting information. On the other hand, spear phishing targets one specific person or a few people.

How is it done?

1) Firstly, the hacker will send a fake email with a website link to targeted victims.

2) This link will direct the victim to a fake website which looks like from a trusted source.

3) This website will look exactly like the original website and will ask users to enter their information as well as their credit card information. An example of the website can be a bank website.

4) The user's information will be directly forwarded to the hacker which he can utilize to gain access to the user's account.

Phishing is not only done by email but also can be done through phone. They will disguise as legit employer and will try to steal personal information. Furthermore, this illegal can also be done through social media sites such as Facebook.

Potential threats of phishing attacks on online users:

' Theft of confidential data:

A hacker might steal confidential information such as the business's future plan, designs, accounts etc. As a result, that particular targeted business will have a loss in competitive advantage and might cause financial issues.

' Destruction of data

With the use of phishing, the hackers can use, change or delete an organization's data. Furthermore, they can almost change everything ranging from user passwords, company's financial reports and other types of settings.

' Loss of money

Once the hacker gets into the system, this is where the company is in very deep trouble because they will experience loss of finance. As a result, this will affect almost everything including customer relationship, company financial reports etc.

'

How can phishing and spear phishing be prevented or avoided?

1. First you should figure out on how to identify phishing e-mails. The best way is to identify is to check the link and compare it with the real business's website. Always enter private date in a secured website only. The website must begin with 'https://' and should indicate a secured lock near the taskbar.

2. Another way is to check the source of information in the mail received. Do remember that a bank would never ask for your passwords through email so before doing anything, contact the bank for confirmation. Delete the e-mail immediately even when you have the smallest doubt.

3. Whenever you want to open the bank's website, never open it from an e-mail, instead you can just search the bank on a search engine and access it from there. Furthermore, always check your bank balances or details from time to time. This can help to identify distortion in your account.

4. Improve the security of your computer by installing reliable antiviruses such as Norton or Kaspersky. Another way is to turn on the firewall from the settings to ensure more protection.

Security, P. (2016) 10 tips to prevent Phishing attacks - Panda security Mediacenter. Available at: http://www.pandasecurity.com/mediacenter/security/10-tips-prevent-phishing-attacks/ (Accessed: 9 November 2016).

What is a supply chain management?

Supply chain management is a system between an organisation and its suppliers to make and distribute a particular product. The supply chain system also demonstrates the steps on how a product is being distributed to the customer. Supply chain management is a critical procedure, because an improved supply chain means lower costs and quick production.

Investopedia.com (2003) 'Supply chain', in Available at: http://www.investopedia.com/terms/s/supplychain.asp (Accessed: 9 November 2016).

There are two strategies which work within the supply chain, which are pull and push systems. Normally a supply chain consists of 5 steps which are:

1) The raw materials are first extracted

2) The manufacturer converts the raw material into finished good with the help of labour and machinery.

3) The finished goods are then transferred to the delivery stage.

4) The distribution office will use the finished goods to stock the business's fulfilment centre and its retailers too.

5) In the final stage, the finished goods are then distributed to the customers.

Lander, S. (2016b) Push vs. Pull supply chain strategy. Available at: http://smallbusiness.chron.com/push-vs-pull-supply-chain-strategy-77452.html (Accessed: 9 November 2016).

What are the roles of push and pull strategies in a supply chain management?

' Push system:

A push system is a strategy used by businesses when the demand of the product determines how many should be produced. For example, a business which produces fruit pushes mangoes during summer time because it has a seasonal demand during that time. This gives the business more preparation time to plan how many should they produce. Finally, it allows the business to change the production plan if demand suddenly fluctuates.

' Pull system:

In this system, products are only made when customer demands it. Basically, it means that production doesn't begin unless the customers say so. Moreover, businesses which utilise pull strategies also use JIT which is Just in Time inventory management. This means that they clear out almost all the stocks and they don't leave anything behind. Furthermore, if the demand suddenly soars up then the business won't be able to cope up with the production which is a big issue. Businesses which use the pull system are usually in niche markets and examples of these businesses can be Lamborghini, Ferrari etc.

Push VS Pull systems

   Push system  Pull system

' Preparation time to project demand.

' Huge amount of stocks

' Lower product quality

' More wastage of resources

' Effective when demand fluctuates

' Higher product quality

' Very few inventory

' Less wastage of resources

' Low unit costs therefore economies of scale

Which of the two should BWB use and why?

First of all, BWB is a business which produces window blinds in a made-to-measure basis. This means that they produce according to the customer's needs. Moreover, the owner wants more growth for BWB which means that we have to advertise to create awareness of the product. As BWB grows in time, the demand of their window blinds will increase. In this situation, it is best that they use the push strategy because the demand levels will increase. Furthermore, the push system should be used because majority of BWB's sales are to businesses who buy in bulk. On the other hand, the pull strategy won't be useful if the demand levels increase because the production process will be very complicated and BWB only has 18 staff. Choosing the push system offers flexibility to BWB which means that if the demand fluctuates then it's easy to tackle this issue. However, the push system also has disadvantages such as lower product quality and wastage of resources. To conclude, I believe that the push system should be used instead of the pull system as the push system suits the nature of BWB and it will be much more effective in contributing to BWB's growth.

Benefits of an effective supply chain management:

' More responsive:

With the increased visibility into the supply chain and adaptive supply chain network, you can be more responsive. You can detect and react rapidly to changes and quickly take advantage of new opportunities.

' Decreases operating expenses:

With SCM, you can bring down operational costs with timelier making arrangements for obtainment, assembling and transportation. Better order, product and execution tracking can prompt to changes in performance and quality.

' Connections with partners:

Tight connection with exchanging partners keeps your supply chain adjusted to current business systems and needs, enhancing the BWB's general execution and accomplishment of objectives.

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