" (2008) Hoagland asks the final question of whether the marketing message "...provide[s] an immediate offer? (2008) Hoagland states that the marketing plan, if it is to be effective must contain: (1) a marketing message that has the element that (2) interrupts; (3) engages; (4) educates; and (5) offers.
The work entitled: "Beating Goliath" published in the Smart Business Magazine relates the story of Mike Abt and his success in keeping his electronics business ahead of the big-box competition. The report states that Mike Abt "as the president of Abt Electronics, the largest single-store electronics and appliance dealer in the United States, besting the competition is his passion. From beating the big-box retailers on price to having an exceptional Web presence and creating an engaging in-store experience, Abt has used traditional and not-so-traditional techniques to draw customers in and keep them coming back." (Wurzinger, 2006) Wurzinger states that it is a well-known fact that in the retail business, the easiest way to attract customers away from your competition is by offering the best practice." (2006) the way to achieve this is by making purchases in bulk, which is generally quite a challenge to the smaller business operations. The Abt Electronics store, while being only a single store has a showroom covering "350,000 square feet, making it large enough to move inventory en masse and allowing it to buy in build and negotiate deals with vendors." (Wurzinger, 2006)
According to Mike Abt the method he uses to keep prices low are through savings in "operating and marketing costs." (Wurzinger, 2006) Abt states that compared to his competitors he has "very little overhead...We spend under 1% advertising and the average person in our industry is spending 7% advertising." (Wurzinger, 2006) Abt states that advertising through the method of "having good word of mouth" is how Abt Electronics realizes the largest savings. Furthermore, the efficiency realized by having only one location saves a great deal in expenses and Abt states: "people drive to us, we don't build stores where they are." (Wurzinger, 2006) Furthermore, there is the company's attitude regarding maintenance and upkeep because Abt Electronics does not "outsource the care and maintenance of its delivery trucks, repair services on the products it sells or its own building maintenance. By doing it all on its own the company saves money and passes those savings on to the customers." (Wurzinger, 2006) Also stated as a factor is that with the company's single store format the company is enabled to a greater level of flexibility and "by remaining small, it is able to adapt to the industry changes more quickly than its competitors can, and its' also willing to take risks." (Wurzinger, 2006) Abt states that the business owner or manager has to be aware in that it is necessary to know what is going on the industry in relation to products and services. It is this "openness to change" that resulted in Abt Electronics presence on the Internet Abt states that his company is "really into information and sharing, and we knew that in the old days, appliance people would go to books and look up specs. We did it first just to get information to the salesman so they could give it out to the customer. Then outside people came to it. We were one of the few appliance guides." (Wurzinger, 2006)
Wurzinger states: "Recognizing the sites draw, in 1997 the company expanded from an online product information guide to a complete online appliances and electronics store." (2006) in order to overcome the fact that on many consumers sites concerning shipping charges resulting in cancelled orders, Abt Electronics has the practice of charging one flat shipping rate to anywhere in the continental United States. Abt Electronics has realized success due to the strategies related in addition to being able to reach consumers throughout the United States. This has enabled the store in external growth through business expansion to other states without having to open a second store. Additionally, the company can sell more inventory that it has room to store. The report states that Abt relates that customers who visit online prior to their visit to the store is approximately 80% of the total customer-base of Abt Electronics. Online shopping at Abt Electronics provides a streamlined manner of shopping for customer as well. Abt Electronics motto is: "The answer is yes to any reasonable request" meaning "that if the customer wants something reasonable...the company does it, no questions asked." (Wurzinger, 2006) Proper delegation of authority is key for Abt Electronics as the...
Small businesses are the backbone of American economy. They are easier to start, minimum capital is required and if, they succeed, the economy reaps benefits more than it does when the entrepreneur was working as an employee. There is something alluring about a small business -- a typical American tale of rages to riches in the making. A new start-up comes forth and may blossom into one of the most
Small Business Government Contracting CEO of Small Business that Provides Service Expansion by Competing for Navy Contracts at a Base Several Miles Away The objective of this study is to examine the scenario of a CEO of a small business that provides a service and business expansion through competing for Navy contracts at a base several miles away. This work will: (1) Determine how the federal government encourages small businesses and how
Small-Business Marketing Strategy Small business Derrick Fine Foods were established in 2001 by Derrick John with the San Francisco store being the first, followed by New York branch and the Tennessee. DFF deals in various consumables hence has the bakery department, meats department, produce section, cheese and dairy section as well as wine section. This gives it a wide coverage in terms of the edibles that may be needed on a daily
Small Business Strategy Small Business Marketing Strategy A television commercials business The small business will be termed as a television commercials business. The business involves marketing of products and services that include television gadgets, programs, hardware, software, and services related with television services. The small business will start operations as a small entrepreneur that accommodates and sells small and support gadgets that are related to television services in town. The objective of the
The first segment is represented by other teenagers. They are most likely to want to buy products that have a social impact, such as t-shirts or mugs with photos of teenager activities. At the same time, they are also the greatest consumers of Internet products, so disseminating the product in an online environment, not only through Snappysnaps, but also through its own website. The only potentially negative aspect of this
Small Business Taking a small clothing store to the online world is a bold proposition. There are a few strengths that this store can draw upon to help it succeed. The first is the name recognition of the Jersey Shore -- people actually know where it is now and that will help the store by putting it into some context. (We will assume that the context is good, at least for
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now