WSM Case 3 - dynamic quick win model (1) - marketing by small scaled knowledge sharing

Dynamic finanical service marketing
The following marketing plan/strategy is scalable, dynamic and effective. It is well proven by a number of education organizations.

Conduct education and selling at the same time by holding some free seminars.

1) marketing to invite people to join their free class by:

• posting ad into the free newspaper
• using email invitation
• providing incentive (like free booklets, free Internet discussion group, lucky draw (coupons for purchasing their products or services)

2) Knowledge sharing to gain creditibility (within the seminar)
within the seminor, providing some interesting topics and simple cases studies like investment / speculative investment / learning technique

3) impulse selling
after collecting the credit, show a listed price of the service and then elicit impulse buying atmosphre by providing some incentive like
early-bird discount
coupon for registration


Case observation:
One number of free knowledge sharing sessions/ courses appear in the marketing to attract different segment of working classes to use their education and investment service.

Every day you can find a number of free classes in the free newspaper like Headline Daily, Metro daily or am730.


How to make use of this marketing strategies?

Due to the editor is busy with dragon boat competition and office Policy Replacement Handling application development so he will share some of the effective strategies and approach to conduct this wining WSM marketing.

Corporate Change and Transform : subsidiaries’ adoption of advanced management practices

The passage share to how use the INFORMATION PROVISION to conduct corporate management referencing to a theory of Diffusing management issued by Harvard Business School.

http://www.hbs.edu/research/pdf/08-085.pdf

Key of Customer Loyalty links to the CS Employee Manageemnt

It's the E=MC2 of customer loyalty.
Deeply satisfied employee = deeply satisfied customer = lifelong profit.

Harvard Business School professor emeritus James L. Heskett has spent much of his career exploring how satisfied employees and customers can drive lifelong profit.

For details, please refer to the article in below

It is estracting from the article "The New Math of Customer Relationships"
http://hbswk.hbs.edu/item/5884.html

How does it related to HK finance service?

It implies the HR is no longer a supporting function, it can be proactively acting as one of the Customer loyalty driver and act as one of the strategic role to build long term profitability for the company.

Editor wil try share more info in later.

"FIRING" the less profitable customers. Has this concept taken hold in practice?

It may be a way to upset the non-targetted customers but the Professor from Harvard Business School points out from the employee point of view

• that it may be another way to express the support to the company employee, and
• keep the company in strategic focus on the profitable segment

The profession points out example of ING Direct, the fastest growing financial service organization in US for the last 7 years. They asked about 10,000 non-profitable customer to go per month, and they preserve the highest customer satisfaction ranking for they 6.5 million of profitable customers.

Extracting from http://hbswk.hbs.edu/item/5884.html

Intel Move in Taiwan

22-Apr (Tue) by Hong Kong Standard.

Intel is planning to invest USD500 millions for the WiMax sector in coming 5 years.

With a such move, it provides a signal to other chips and periperals sector players to have more positive and assertive business plan for growth and expansion.

How does it related to the investors?
It can be anitcipated more IT related good news will come forward like joining co-operation, new deals direct or indirect will that news can be anticipated in the near future.

It generated the demend for logistic and IT business. The stock for Taiwan IT company, logistic companies will look good.

Editor reading site

MIT Business School

http://ocw.mit.edu/OcwWeb/Sloan-School-of-Management/15-810Spring-2005/Readings/

WSM Case 2 - marketing strategy to attract people to click into your web

Office Email Marketing - Case 1 - effective WSM marketing strategy to visit to your web Ad and promotion info by using activity marketing together with office email marketing

A case studies has been conducted by editor during Q1 and Q2 2008

Marketing Theory:

• Office Email marketing is highly effective during in office hour which other marketin channel cannot take part properly during office time
• Office Email marketing + Activities marketing combined marketing strategy is very useful to conduct market communication

Result of the experiements:
over 95% has clicked into this web.

Experiement approach

1. conduct a social gathering (editor is very happy for his wedding, after his wedding, editor found that this wedding was also a very typical email marketing example. So he trys to document the experience in below)
2. establish an blog with web-visiting count (google adsense) - http://gracewilliam.blogspot.com
3. this blog has posted some activities who may involve the target marketing segment. The activiteis like joinining some social gathering or charity compaign.
4. email to those target segments and tell them the activities info has been posted onto the blog

Result in details

• this blog received very high click rate (nearly 95%) during office hour within same day of issuing the email

Implication - what have we got?

1. instance fast result marketing with effective and high clicked rate of promotion message
2. office email marketing is one of the most effective way to conduct WSM in term of time to market consideration
3. effective and low cost
4. high customized email content is required

WSM Case 1- office email marketing studies

WSM Case 1 - new launch of credit card in Q2 - 2008

One of the World Brand, local wisdom has launch a new brand with environmental friend concept platinum credit card recently.

Their Marketing Strategies

Marjor Marketing Theme
Promoting the enironment protection concept, partial income will be donoted to environmental related organization/activities /event.

Tangible Marketing Strategy
Card is designed in Green color to align with this cencept with a "G" shape in the right hand side. It provides a strong sense of linkage for customer who would like to claim for environment protection to others.

Marketing Compagin
both WSM and public marketing compaign was conducted in starting of Q2 2008.

1) they have over thousands of employee in HK, the fastest way to have a quick win is to make use of the office-email system to ask for their internal staff to issue this card.

Result: this WSM marketing is successful to get my wife to apply for this card because of the unqiue appearance.

2) Mass marketing - the local bank has use the following marketing channels to promote its new card:
1) place banner ad in Yahoo portal
2) place in google ad
3) place ad in major magazine and newspaper
4) place initiate ad and conduct compagin in the marjor shopping streets like Causeway Bay.


Implications - What we can learn?
If you want to market to Office ladies segment
Card appearance is importance to attract office ladies segment
WSM is quite effective to office ladies segment

Editors will continue to follow up and observe the marketing effectiveness of this card and publish our observation in later onto this blog.

a New Weapon of Distribution, a brand new Sales & Mkg channel - www.pccweye.com

The recently launched EYE mulitmedia services by PCCW is the one the greatest product/service which PCCW has invented. It is a playground for marketers to market their product from whatever segments of customer who has an access to their domestic and office phone. Editors found this service recenlty in 2008 and would like to share with you how it can be impact to financial service sectors.

In short, pccw created a new vital battlefield (playground) for and suppliers to market and distribute their products

? how special it is?

1) it is just a phone which implies it is very to be adopted by public as with minimum resistances from customer point of view. It can be anticipated with very short learning curve by customers only.

2) an exclusive marketing channel

3) an interactive automated distribution point down to consumer's premises

4) easy to use and understand - just a normal phone panel

5) better security and confidence than using internet service

6) it is integrated with Octopus payment (Smart Card usage)

7) from tech point of view, it is not any new magic but providing an extremely easy and quick access point to customer. That's is the key point. What it can be done is just like what can be do on the Internet, the difference is the integration services are being selected and filtered to attract the target segments.

? For finanical services, how to benefit from it?

Being a point of sales distribution channel any gurantee issue financial products is good for it like

• travel insurance,
• A&H product,
• fund investment,
• personal finance/ loan,
• credit card service etc.....

? For finanical services, any suggested strategies?

If I have plenty marketing resources.....

Try to secure an exclusive distribution right with PCCW by signing an exclusive usage of Eye multimedia services. This is a dominant strategy which can be considered by resourceful finanical institution. It provides a new channel of investement to the business distrbution. From the editor points of view, as the service is just launched, the impact of ther service is not quantified yet. Right now it is just the best time to deal with PCCW to ask for this kind of offerings.

Think in BIG..... If I have plenty capital or credit powers.....
Try to secure an exclusive distribution right by entering the director of board of PCCW.

It is not a crazy strategy. Because it is an absolutly good time to perform any aquisition

1. The PE of PCCW is relatively low in the stock marketing.
2. The marjor stock holder (Mr. Richard Lee) shows the willness to sell.
3. The current stock market atmosphere is not good
4. The current interest rate is very very low
5. PCCW has tele-serivce reaching to HK, UK, Middle east and Japan

It is also a good time to consider to secure this new distributing channel by purchasing the PCCW shares becoming one of the PCCW major share owner.

As PCCW has it's own regional exposure to the above locations, the delivery the Eye service to the location is a matter of time. How can you develop an new distribution channel by just spending the capital to collect all of this potential of sales with such as short time and minimum risk?

Moreover, from the investment point of view,

• PCCW provides good and relative stable dividends at this moment so the risk for have wrong investment is very minimum.
• PCCW is nearly becoming monopoly of the tele-communication service provider in HK (mobile phone, pay-TV, fix-net-work phone, board-band services etc). Investing to the monopolies is an relative and high return strategy during in a low interest rate period
• PCCW 's current NAV is good (around HKD $4.9 at this moment)
• PCCW's PE is low at this moment
• PCCW's PEG is low
• PCCW is trying to privitize this property development subsidary

? For finanical services, any risk for the above strategies?

The risks is the captial investment which is relative low in the current point of time with low interest rate and the company has good relative revenue of income.

More, comparing with other regular investment to the existing distribution channel like the agency distribution, it can be trival to conclude that this strategy is low cost with high ROE and IRR.

? For finanical services, any recommendations?

Chinese has a phase so called "who get the weapon, who can win the world". Now, PCCW has created this new weapon, let's see who can win by using it. Or it is replacing by any newer technology.

This strategy is particular good for any finanical institution who is aiming to have a firmed and long term growth strategy by investing to formulate and develop a new and robut alternative distribution channel.

From editor's view, anyone can still be standing up after the subprime issues can be the possible player to this proposed strategy like all the insurance and bank operators in China, AIG, HSBC, Singapore fund (eg. GIC) or the investor from middle east and US.

JF Five Elements Fund Marketing Strategy

In Q1 of 2008, JF has launched their new fund marketing compaign in Hong Kong. In this blog, editor would like to share and discuss this fund marketing strategy from a public and customer point of view first and then try to just some editor recommended measurement of the effecttiveness in later discussion (for details, please refer to Editor's another articles - HK Finance Marketing Communication Guide)

Marketing Segment

The fund provides a very clear marketing objective to point to the Chinese populations with a senior age group.

To do this, they use a very traditional name so called 5 Elements (Ng Han) to try to attract awareness and gain this segment recognition.

It is quite clear that they have pick a massive and undifferentiated segment which covers the HK people from a big age range as Editor can see they place ad in a number of financial magazines (i-Money, Economic Weekly, Next magazine etc), daily newspapers, having 3 mins TV program to introduce this fund in TVB at night at 22:30 for 2 weeks, MTR poster ads in the commercial areas.

Compaign Observation

It is a resourceful marketing strategy to educate and market this fund by using all the major marketing channels. Let's time and result to judge this compagin success or not. Editor will follow up and monitor this fund to see how much sales can be made by this marketing campagin and let's have a cost-effectiveness point of view to analyst it in the later publishing articles by editors