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  • Strategies for the successful implementation of augmented reality

    The potential benefits of augmented reality (AR) to consumers include high levels of interactivity, exposure to an extensive virtual inventory tailored to their needs, high-quality customer support, and better integration between web and store-based shopping experiences. The anticipated benefits of a successful AR strategy to a brand or retailer include higher inventory turnover, increased average sales, reduced sales costs, lower customer returns, higher levels of related-item selling, and better customer support outcomes. Despite these revenue- and loyalty-enhancing benefits, few companies use AR, develop a highly integrated AR plan, or incorporate AR into their marketing programs. This article focuses on the successful planning and implementation of AR through a six-step process: (1) Determine how AR can help achieve marketing objectives; (2) choose appropriate products, channels, and target markets for AR; (3) select among AR application types; (4) design AR apps; (5) evaluate alternative AR organizational formats; and (6) measure the success of AR programs.
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  • Flatlined: Combatting the Death of Retail Stores

    The recent wave of retail bankruptcies as well as poor sales performance has resulted in a large number of store closings. Low sales in store-based retailers can also be attributed to the rapid growth of web-based retailers (largely, Amazon) as well as an excess of store space per capita in the U.S. as compared to other developed nations. Strategies to stem the decline of retail stores include: (1) utilizing omnichannel-based synergies among channels and devices to increase store sales; (2) making stores more attractive and engaging through personalization, interactivity, and a constantly changing environment; and (3) improving productivity through introducing small-size store formats and downsizing existing stores.
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  • Planning and Implementing Effective Mobile Marketing Programs

    Mobile marketing is an ever increasingly important component of a firm's overall promotional strategy. The importance of this medium can be seen through time spent on mobile media, number of searches, and direct and indirect mobile-generated sales. Despite its increased importance, the effectiveness of mobile marketing needs to be improved based on such metrics as bounce rates, add-to-cart rates, shopping cart abandonment, and average order size. Strategies to increase the effectiveness of mobile marketing are discussed. Firms need to capitalize on the three major strategic advantages of mobile marketing: (1) the fact that mobile marketing devices are always on, always connected, and always with the consumer; (2) the ability to generate location-sensitive offers; and (3) the ability to send relevant personalized messages and offers. Firms also need to develop and implement an effective mobile marketing strategy through a series of activities. These include understanding and reacting to the complexity of mobile marketing, designing sites based on ease of use versus 'bells and whistles,' increasing opt-in rates, using effective customer engagement strategies, and developing effective mobile coupons. Criteria to evaluate the effectiveness of mobile marketing are discussed.
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  • Referral marketing: Harnessing the power of your customers

    The differences between traditional and referral marketing programs are so great that the two share little overlap in terms of appropriate target markets, marketing objectives, marketing organization, and overall planning and implementation strategies. Traditional marketing programs seek advocates among current employees to spread word of mouth, aim marketing efforts at high lifetime-value customers, focus on customer satisfaction, and use promotional programs that heavily rely on social media. In contrast, referral marketing relies on motivating satisfied/delighted customers as a referral base, seeking current customers that can provide referrals with a high lifetime value, using referral-based marketing programs to augment traditional promotions, and developing a compensation system for referrals based on either direct payment or increased visibility. Major advantages of referral marketing programs as compared with traditional marketing programs include greater credibility of friend/family member recommendations over paid advertisements, access to new customers that traditional marketing programs may not reach, and better matching of referred customers' needs to a good or service. This article presents an eight-step process to develop, implement, and evaluate the success of a referral program. In addition, it discusses academic research findings and presents examples of successful referral program strategies from--among others--Dropbox, Roku, PayPal, Digitalis, and Omaha Steaks.
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  • 3-D Printing: The New Industrial Revolution

    This article examines the characteristics and applications of 3-D printing and compares it with mass customization and other manufacturing processes. 3-D printing enables small quantities of customized goods to be produced at relatively low costs. While currently used primarily to manufacture prototypes and mockups, a number of promising applications exist in the production of replacement parts, dental crowns, and artificial limbs, as well as in bridge manufacturing. 3-D printing has been compared to such disruptive technologies as digital books and music downloads that enable consumers to order their selections online, allow firms to profitably serve small market segments, and enable companies to operate with little or no unsold finished goods inventory. Some experts have also argued that 3-D printing will significantly reduce the advantages of producing small lot sizes in low-wage countries via reduced need for factory workers.
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  • Strategies to Reduce Product Proliferation

    Major problems associated with product proliferation include higher production, inventory, and record-keeping costs; increased expenses associated with trade promotions and slotting fees; added consumer confusion and stress; and increased susceptibility to stockouts. This article describes how a firm can limit product proliferation without incurring reduced sales or lowering consumer loyalty. An effective product proliferation reduction program needs to be based on several principles: resisting the temptation of asking consumers if a greater assortment is required; classifying goods into consumer-behavior-based tiers; using interfunctional product pruning teams; practicing mass customization, where appropriate; placing absolute limits on product choice; and implementing effective strategies for product pruning.
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  • Managing Product Safety of Imported Chinese Goods

    While recent recalls and scares have focused greatly on Chinese manufactured toys and foodstuffs, the issue of product safety extends to a wide variety of Chinese-produced goods. The supply chain in China is characterized by cost pressures and quality fade, multiple levels of outsourcing often involving small producers, a large number of counterfeit goods, Chinese cleverness at evading detection, and poor product safety surveillance by both the Chinese and U.S. governments. While some of these characteristics are present in other developing economies, few countries-save China-face all of these issues. To best counteract these forces, companies which outsource goods from China need a well-defined strategy to improve product safety. This strategy should encompass the practices of developing an organizational unit responsible for product safety, securing greater control over raw material sourcing in China, using extreme care in choosing Chinese subcontractors, conducting continuous product testing by multiple parties, being especially vigilant for counterfeits, and improving product traceability. Toward the end of ensuring items which meet quality standards, product safety auditing allows firms to assess their management of product safety of Chinese-made goods.
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  • Developing an Effective Customer Loyalty Program

    Despite the large number of firms offering loyalty programs and their high levels of consumer membership, many of these loyalty programs have not been successful. Differentiates among four different types of loyalty programs and offers a series of guidelines to assist firms to develop, implement, and control an effective loyalty program. Describes several potential pitfalls that need to be avoided.
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  • How to Delight Your Customers

    While many researchers have made contributions to the now extensive literature on service quality, there is much less research on what constitutes delight in service quality and how organizations can delight customers. Examines the differences between customer satisfaction and customer delight, notably the benefits of delighting rather than merely satisfying customers. Describes how to delight customers and outlines how to implement a successful customer delight program as well as how to measure customer delight. Also discusses the potential pitfalls of doing so.
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  • Data Mining: On the Trail to Marketing Gold

    What is data mining, and how does it differ from traditional statistical modeling? Along with finding the answers here, managers can take a look at important recent developments in data mining, examine some of its marketing-related applications, and learn how to establish and maintain a data mining system. Armed with this information, they can then determine their firm's level of commitment to the process. Companies that do not want to commit the financial and personnel resources to data mining can still secure many of its benefits through outsourcing.
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  • Planning for the Inevitable Product Recall

    The importance of planning for a product recall can be seen in the large number of recalls, their increasing frequency, and the overall costs they incur, both direct and indirect. Direct costs include: communicating to all affected parties; the logistics of recovering, repairing, and returning the product; and the loss in profits due to diminished sales during and after the recall period. Indirect costs occur in lowered stock price and market value. This article offers a guide to planning during three phases of product recall: prior to, during, and after the recall. Proper readiness for product recalls can substantially minimize both direct and indirect costs.
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