Marketing Advantage Of Nestle

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Register to read the introduction… Benefits of direct marketing:
Buyers
• Home shopping- fun, convenient and hassle free, time saving, larger variety.
• Comparative shopping possible- browsing through online catalogues.
• Somebody else other than buyer can order goods.
• Business customers- learn about new products & services- time saved in meeting sales people.
Sellers
• Buy mailing lists- any group : left handed, overweight, millionaires
• Personalize and customize the messages- build continuous relationship with customers Nestle’s baby food division- database of new mothers, mails 6 personalized package of gifts and advice on key stages in baby’s life.
• Reach prospects at the right time- direct marketing material – higher readership - timing • Testing of media and messages- most cost effective
• Strategy is less visible to competitors
• Measure responses to their campaign – which is most profitable
The growing use of Integrated Direct Marketing
Although online and direct marketing is booming, a large no. of companies relegatelower
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A rise in relative market share means that the company is gaining on its competitor.
Conclusions from Market Share Analysis:
• The assumption that outside forces affect all companies in the same way is often not true.
• The assumption that a company’s performance should be judged against the average performance of all companies is not always valid.
• If a new firm enters the industry, then every existing firms market share might fall. Share loss depends on the degree to which the new firm hits the company’s specific markets.
• Sometimes a market share decline is deliberately engineered to improve profits. E.g management may drop unprofitable customers or products to improve its profits.
• Market share can fluctuate for many minor reasons.
• Overall Market Share = Customer penetration * Customer loyalty *
Customer Selectivity * Price Selectivity
• Customer penetration is the % of all the customers who buy from the company • Customer loyalty is the purchases from the company by its customers expressed as a percentage of the size of the average customer purchase from an average

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