Term 2 Progress Test 2 Revision Sheet

Study the terms, review questions, and discussion questions from chapter 15 in your Introduction to Business textbook.

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Study chapters 13 and 14 in the Introduction to Business book.

Get ready for (slightly) fatter paychecks

The most obvious sign of the economic recovery may be in
your paycheck.

As companies return to profitability, many plan to award
employees with better raises in 2011 after years of stagnant wages, according
to two recent reports.

More than 98% of companies said they plan to increase base
pay in 2011, according to Mercer's recent compensation survey.

And separate survey by human resources firm Towers Watson
found that fewer companies are freezing salaries this year, with only 5%
planning to do so in 2011, down from 12% last year and 32% in 2009.

But employees may have to squint to see a difference in
their take-home pay.

The employers surveyed by Mercer said that the average
increase is expected to be 2.8% in 2011, up from 2.7% last year.

A 2.8% raise comes out to about $38 more per paycheck after
taxes for a full-time worker, assuming the employee makes the median annual
income of $50,500 and is paid biweekly.

"Wage growth is going to be very limited this year, but
at least it's heading in the right direction," said Joseph Coombs, a
workplace trends and forecasting specialist for the Society of Human Resources.

Despite the improvement, workers are for the most part still
trying to work their way back to break even. During the recession, high
unemployment and slow economic growth took a toll on wages. After declining in
2009 and staying mostly flat in 2010, national average wage levels are now no
higher than they were at the start of 2008, three years ago, according to a
report released Tuesday by PayScale.com.

Meanwhile, the cost of goods has increased, reducing
consumer buying power, the salary-tracking firm said.

But as business conditions improve and the job market starts
to show signs of life, companies are gaining the flexibility to pay their
workers more - and they have more incentive to try and retain top
talent, Coombs explained.

"For employees who suffered with their employers
through the worst of the recession, things have largely stabilized now and we
can look forward to some incremental improvement," added Laury Sejen, a
rewards practice leader at Towers Watson.

Even though most indicators point to an improvement in the
year ahead, Al Lee, PayScale's director of quantitative analysis, notes that
employers are still far from the days of awarding hefty annual raises.

"At the end of next year the odds are you are not going
to be seeing a fat raise," he said. "If you get a percent or two, be
happy."

summary:

Employment wages are driven by supply and demand, not company profitability
or government mandate. Mickey is right - profitability has been very high over
the last couple of years for most companies. As long as there is a cheap supply
of labor overseas the big businesses will outsource whatever work they can. When
demand for products and services increases businesses will be forced to hire
some in the states and wages will rise as the best employees jump ship for
better offers and some of the unemployed get jobs.

 

 

 

http://money.cnn.com/2011/01/12/pf/wages_to_rise_2011/index.htm?source=cnn_bin&hpt=Sbin

 

 

ECONOMICS PROJECT.

Friedrich Von Hayek's Monetary Theory

There are basically 2 ways of looking at the monetary cycle theory; vertical, where the economy will go in recession or a boom through time. or horizontal, where it will happen via consumers. Hayek concentrated on the horizontal method. he's basically saying that you can control whether the economy will be in recession or not by controlling either consumer goods supply or capital demand. if you supply the same amount of consumer goods, eventually, of course, the demand will rise. so if you just ignore the fact that you need more capital i.e machines, etc. to balance the supply with demand and continue with what you're doing, the economy will not be affected and neither will your firm be. and if you should decrease the amount of consumer goods, the same will occur except that you will require less labor force. Hence, higher unemployment rate. I agree with Hayek that you could control the economy, but not the entire economy. If you think about it, either way you try to balance the chaos that is recession, there is still something there that's helping recession grow as well. like for example, the less consumer goods, more unemployed people, more investment in the economy and therefore, recession. maybe if the labor force was kept the same then it would be flawless. However, I believe the second method is perfect in every way. if the demand increases, you could just ignore it and continue, this may not be good for the company as it may lose consumers and eventually go to firms that increase capital demand or consumer goods supply. banks could intervene in this matter by not giving the firm a loan or increasing the interest rate on them in order to maintain the balance.

A Makeover for the Starbucks Mermaid

Chief executive of the famous Starbucks company, Howard Schultz, has announced that their logo of the mermaid shall no longer have the name of the company written around it as with different coloring of the logo. This was performed because Mr. Schultz believes that the new logo is what the company needs to increase revenue and its reputation as one of the best coffee places ever. He kept the basic mermaid as is in order for the chain and/or company to be easily identified and recognized.

As more and more Coffee companies started coming, Starbucks started to fade easily in the background. for example, about 5 years ago, you would only find Starbucks infront of major firms like Jarir Bookstore and in main streets. but now, maybe because of alot of streets being constructed and all that, they only have a few in Riyadh and more Coffee places like Columbus Cafe, Java Cafe, and amongst others started to rise at a fast rate. I believe Howard Schultz made this redesign so they could make a life extension to the company. they grew it too fast to the point where they had to close 600 stores in America alone in 2008! so i believe he's trying to reestablish the company and grow it back but at a steady speed.

New SBA loans

The banks stopped giving loans easily after the last crisis but what is really surprising that it still gives loans to the leading companies trying to gain what they lost. Small businesses don't really have a good chance to get loans although many of these small businesses could have great potentials The SBA has solved this problem, SBA is a cooperation that lend small businesses loans that does not exceed 250,000. "Many entrepreneurs and small business owners across the country have enormous potential to drive economic growth and create good-paying jobs in their local communities, but too often they face barriers in fulfilling that potential," said Catherine Hughes, chairperson of the SBA's new Advisory Council on Underserved Communities, in a written statement. Many banks after the last crisis has stopped giving loans to small businesses because the big cooperations and companies didn't pay the loans on time. This will be an advantage to SBA because it will attract many customers since it's applications are easy to fill and the approval doesn't take time. This shows a good business customer relationship plus winning the competition hence the banks are busy collecting the loans from the great firms. SBA made a smart move by giving a lot of small loans to many customers ,which will reduce all its risks because it is investing its money in more than one place. A second initiative, called Community Advantage, aims to get SBA-backed loans to under-served communities, such as minority-, women-, and veteran-owned businesses, as well as firms in lower-income or rural areas.

The program encourages borrowers to develop a business plan and work with advisors. Applications should be approved within 5 to 10 days.

link

Canada stocks drop after jobs reports..

Canadian stocks briefly benefited from expectations that the jobs reports are unlikely to change the accommodative monetary policy on both sides of the border.

But Wall Street later succombed to additional selling pressure after a foreclosure ruling in Massachusetts pressured banks.

Among the most active movers in Toronto, Canadian Natural Resources droped 5% after a fire in its Horizon oilsands mine.

Meanwhile, gold stocks rose even as gold futures fell for the fourth session in a row. The February contract on the New York Mercantile Exchange fell $2.80 to US$1,368.90 an ounce.

Canada stocks look to break five-session losing streak..

Canadian justice markets are picking up on global hopefulness that is lifting commodity prices through two catalysts,” said Derek Holt, vice president at Capital Markets Research. “One is Japan’s announced intention to buy European debt. The other is better Chinese loan growth figures that suggest resilient growth in the face of policy tightening.”

Resource shares climbed as prices for gold tapped a high near $1,390 an ounce and oil climbed past $90 per barrel in New York.

Shares of Eldorado Gold Corp. were up 4.1%, Yamana Gold Inc. added 2.4% and Talisman Energy Inc rose 2.5%.

Data showing a fall in housing starts in December, however, weighed on some property stocks. Brookfield Properties Corp. traded up 0.2%, while Riocan Real Estate Investment Trust was nearly unchanged.

In currencies trading, the U.S. dollar traded slightly weaker against the Canadian dollar, buying 99.20 Canadian cents, down from 99.26 cents late Monday in North American trading

China December auto sales up but growth slows..

In Beijing, the auto sales of China rose by double digits in December as people who bought them tried their best to take advantage of expiring tax breaks but growth weakened after a stimulus driven rush early in the year, two industry groups reported Monday.

Global automakers are looking to China which is the biggest market by number of vehicles sold. Total passenger vehicle sales rose 17.9 percent in December over a year earlier to 1.7 million units, the association of automobile manufacture reported. It said full-year sales rose 33.2 percent to 13.7 million vehicles.

Sales of passenger cars, a category that doesn’t include large buses or trucks, rose 26.7 percent in December from a year earlier to just under 1.5 million units, said a separate group, the China Passenger Car Association. It said full year sales increased 30.5 percent to 13.3 million vehicles.

car sales surged in early 2010 after Beijing cut sales taxes and offered subsidies to buyers of smaller, fuel-efficient vehicles.

China passed the United States in 2009 as the biggest market by number of vehicles as the global financial crisis battered American sales.

General Motors Co. says 2009 sales in China of GM-brand vehicles by the company and its local partners rose 29 percent to 2.35 million units. China passed the United States as GM's biggest market early last year.

Toyota Motor Corp. said sales by the company and its local partners rose 19 percent last year to 846,000 vehicles. Ford motor Co. said sales in China last jumped 40 percent to 582,467 units, helped by a 52 percent rise in December.

Explosive growth in Chinese car ownership has helped to propel the rise of a domestic auto industry and demand for steel but has left Beijing.

The Effects of Change On The Manager

http://work911.com/articles/change_man.htm

Stress, Stress & More Stress

One primary concern regarding change is the stress it imposes on those undergoing the change.  Managers, because they have obligations to their staff, not only have to deal with change as employees but also need to carry some of the concerns of their staffs.  In the case of downsizing, the stress levels can be extremely high, because the manager is charged with conveying very upsetting information.

Stress is part of the job, but in times of change, it is critical that you recognize that it may cause you to act in ways that are less effective than usual.  As with anything connected with change, the major concern is not short term but long term.  If your stress levels result in marked loss of effectiveness, the risk is that a vicious cycle will be set up, where ineffective leadership results in creating more long term problems, which increases your stress, which reduces your effectiveness even more.

Avoidance -- A Common Response

A common response to unpleasant change is to ignore the situation.  Avoidance can take many forms.  Most commonly, the avoiding manager plays only a minimal role in moving the organization through the swamp.  After announcing the change and doing the minimum required, the manager "hides" from the change, through delegation, or attending to other work.  This tactic involves treating things as "business as usual".

The outcomes of this tactic can be devastating.  By avoiding situations, the manager abdicates any leadership role, when staff needs it most, during and after significant change.  In addition, the avoidance results in the manager becoming out of touch with the people and realities of the organization.

While avoidance serves a need for the manager in the short run, it destroys the manager's credibility, and results in poor decisions.  The long term consequence of such action is that the organization tends to deteriorate in terms of morale, effectiveness and productivity.  Sometimes this deterioration is irreversable.

Denial -- Another Ineffective Tactic

Sometimes the manager deals with change by denying its impact.  Usually, the denying manager takes a very logical approach to change.  Decisions get made, systems are put in place, or new procedures are developed.  Unfortunately, this "logical" approach denies the impact of change on the people in the organization.  
The denying manager tends to refuse to understand "what the big deal is", and shows little empathy with employees in the organization.

As with avoidance the denying tactic tends to drop the manager's credibility and destroy any personal loyalty on the part of employees.  

My Summary :

Managers are always stressed that they can be changed. They're always stressed upon their performance if its good or bad. If you are stressed then you don't give much to your work and your effectiveness decreases. A good response to the change is to ignore the situation. Avoiding reliability serving  a need for the manager in the short run, it destroys the manager's credibility, and the result is always poor decisions. 

Toyota's Brand Troubles Will Remain in 2011, Marketing Researcher Says

Toyota's Brand Troubles Will Remain in 2011, Marketing Researcher Says

Whether it's transmission failure on the Camry, or messed up shifting in the RAV4. Toyota doesn't seem to b on its A-game lately. it's been this way since 2002 (maybe even before then), but it only made headlines when they made serious problems back in '07 and having one of the biggest recalls of all time (most recalls at#1 is still Ford). And even a major company like this cant make a comeback to its glory days. researchers believe that it could take at least a decade for them to return to their good state. but that will, in fact, produce losses.

OVERALL:

I believe that Toyota tried to save a few bucks in order to reach profit maximization. i think its the new management probably that made this kind of strategy, which was very risky (and,apparently, didn't work out as they planned), especially for such a big company like Toyota. It was kind of smart on the management's side to make such a risk, not many consumers can point out the trouble of the car was made by the retailer that gave it, or the company itself. some don't even know the basics of a car, let alone, a transmission failure. all I'm saying is, that if you wanted to buy the new Corolla, you better rethink that idea and find a substitute for Asian-reliable car manufacturers. I would honestly go for Nissan. Quality and honesty from the company.

BMW Set To Begin Used Car Business In India On January 2011

The renowned German luxury car manufacturer and the major competitor of Mercedes Benz, BMW has been in operation in the Indian market in the past 3 years and have successfully reached a stage where the cars have started to come back. And having this condition to consider, the company also started to establish the used BMW cars in the Indian market. The company has also plans of starting this innovative used car business in January 2011 which is probably the best way for them to start the new year.

Mr. Andreas Schaaf, the president of BMW India addresses the big plan and commented that it is a long time plan that BMW is operating successfully in such a profitable market as that of India especially in the luxury car market and now that the cars are returning on their garage, the company wishes to enter the Used Cars business which is expected to further help them cover the market in a more efficient manner.

The decision to step into the used car market is derived from the exponential demand of the pre-owned BMW cars in India Moreover, the company's major competitor of BMW, Mercedes Benz is also into the used car business since June of last year and has been doing pretty well in the segment. Mercedes Benz has registered total sales of 600 cars in the used car business since it has entered the segment which has further forced BMW to take a step forward in bringing in the pre-owned cars in the market.

iPhone Calls Up First Place on List of Most Social Brands

http://technorati.com/blogging/article/iphone-calls-up-first-place-on/

My opinion about this article is that Apple is taking over the world with its remarkable products. Doing a great job marketing their products they have been ranked No. 1 of the most social brands, following Apple is BlackBerry with rank No.2. Apple introduced the Iphone4 to the market which made loads of profit so BlackBerry’s income started decreasing; BlackBerry introduced the storm which had almost the same features as the Iphone4 like the touch screen and the 5 mega pixel camera. Apple is working on the Iphone4 white edition which might be released sometime late this summer which will dominate all other Phones in the market. Since every new product Apple introduces to the market customers rush to be the first to buy there amazing products that they are even willing to camp outside stores to wait for the product to come after the first arrival of products are out of stock.

Top 10 Reasons Small Businesses Fail

Top 10 Reasons Small Businesses Fail

Failure is most likely the darkest side of entrepreneurship. A main reason for this is that its causes are unknown to entrepreneurs. And a main reason for this is that entrepreneurs often think they are doing what is right for the business while they are in fact driving the business towards failure, often out of denial or ignorance of errors. If these entrepreneurs had acknowledged these mistakes, instead of blaming his or her partner, bank, or the government, his or her business may have been saved. But what are these fatal errors?

(1) There is not a sufficient market for the product to profit the business.

(2) Owners make it hard on themselves behaviorally or personally.

(3) Over-expansion ruins the business as it attempts to broaden its product reach to consumers or its product mix.

(4) Financial ignorance causes the firm to blindly stumble since it finds no support from accounting firms.

(5) A sudden misfortune can drain a business of cash or credit.

(6) The loss of potential customers through average or under-average goods, services and ideas leaves a business stranded.

(7) Overwhelming costs can prove to be lethal to a business in today’s economy and competitive environment.

(8) Poor management without vision, standards, focus, standards, or a dozen other things drive a firm into failure.

(9) Family businesses are discontinued as the previous generation passes away without leaving a succession plan.

(10) Businesses in declining markets, even theoretically successful ones, may be left behind in the dust due to uncontrollable forces.

Following this paragraph, I will discuss how some of these problems can be solved and failure can be averted as these problems relate to marketing.

Reason 1: An insufficient and/or unprofitable market

This could mean that the product has A SMALL/NO market, or there is a thriving market but larger firms, which can take advantage of things such as economies of scale.

To avoid the problem of there being a small/no market, market research could be conducted beforehand. As the entrepreneur proceeds through the six basic steps of market research (which include problem definition, preliminary investigation, research planning, information gathering, information interpreting, and conclusion research), he or she may discover there is not a sufficient, profitable market for the planned product. Although this can be expensive and/or time consuming for the owner-to-be of the small business, it can save him or her from failure.

If the market is thriving, but there are larger businesses which have lower priced or better known products, the small business may be overwhelmed by the competition. Advantages the companies have over small businesses, such as the benefits of economies of scale (which is the reduction of average costs due to an increase of business size), can be overcome with high quality, personalized products, or even a strong advertising campaign.

Reason 3: Over-expansion

Here, the successful business can be rundown with too many loans meant keep the business expanding, “growing pains”, or, as we will examine, moving into unprofitable markets.

As a small firm grows, it may wish to grow into other markets. These may be closely related, for instance from an auto-manufacturer to an auto-dealer, or they could be irrelevant, as from a restaurant to a hardware store. But in all cases, there is unfamiliar ground onto which the entrepreneur is stepping. Research and development, which includes market research, can help avoid this.

After the successful firm has researched the matter, which could be done thoroughly since the business has sufficient assets, it can either abort the idea and continue to market the same products, or it use the researched information to create a product which would satisfy the consumers needs.

Reason 6: Operational mediocrity

This means the business is okay; it’s not unlike other firms, so consumers are not compelled to purchase products from it.

This can lead to a fluctuant and random market of customers. Since they have no real reason to go to that firm as opposed to other similar businesses, they may or may not. This can lead to low sales. To such a business, each and every customer is crucial, so it needs to keep all it can get. By employing Customer Relationship Management (CRM), the business can retain its old customers, stand out amongst its competition, and gain new customers.

In the process of CRM, the firm could have its customers fill out response sheets on the firm’s products or general questionnaires about their needs and wants. This would give the business product feedback so it can improve its products or it could give the firm marketing information so improve overall sales. In addition to improving profitability by increasing customer quantity, the firm could improve consumer quality through relationship marketing, which is the establishing of “long-term, mutually satisfying buyer-seller relationships”.

Reason 10: A declining market

As we progress in the twenty-first century, technology changes daily, consumer demand is even more fluctuant, and massive companies with millions to spend continue to overwhelm small businesses. In this environment, even once popular business types, such as book stores, music stores, and printing shops, have begun to see decline. One method of combating this would be to employ an effective marketing campaign. This could spice up enough interest in the forgotten product so sales could once again rise.

Such a campaign would have to incorporate all aspects of marketing (product, price, distribution, and promotion) to achieve maximum effectiveness. Although small retailers are generally unable to have a large impact on the creation of products (books, music, paper), they can offer attractive prices for high quality products. This itself could bring a business off the brink of failure. Add to that an easily accessed location and possibly events to promote the product, and the business could thrive once more. However, the overall scope of the firm should not be forgotten as the owner plans and enacts all of this.

So, that is how the little guys fall and how they can catch themselves before they crash.

Ipad Looms Large as Tablets Hit the Market

Ipad Looms Large as Tablets Hit the Market

My opinion of this article is that Apple is doing an amazing job in marketing their Ipads around the world. Even though the Ipad was introduced as the first tablet among the major bussiness it sales are much higher than the new introduced tablets like BlackBerry Playbook, Samsung Galaxy Tab and Dells new Streak 7. All the new tablets have features that the Ipad doesent have HD cameras and flash. While Apple are working on their new Ipad which I think will be released in the first quarter and it will dominate all other tablets in the market. Since every year Apple introduces new Ipods and Iphones thats why their customers are so loyal to them that they camp in front of their stores waiting for their new gadgets.

Five Biggest Mistakes Retirees Make

There are five huge mistakes that most retired people do.Most people wait tell they get retired saving most of there money,then saying when i retire im goin to start a business become filthy rich,believeing that they will have the experience to make it big.But face the fact people most retired people make huge mistakes so this is for people that are about to retire and planing to start a business. im goin to show you the five biggest mistakes retirees make read it carefully and try not to make those mistakes to see these mistakes click this link and don't worry its not a virus
http://http://www.walletpop.com/2011/01/07/five-biggest-mistakes-retirees-make/

THE SONY PS3 AND It's MARKETING
PLAN


SONY, a large and well known electronics manufacturer has started a totally new marketing campaign in America to support the launch of it's PS3 with a new line; "PLAY BEYOND". SONY has launched this new campaign in order to further promote the PS3 and to inspire gamers to get ready for the next era of gaming entertainment, and with this new line at hand, SONY hopes that a message will be conveyed, that the PS3 is not your average gaming console and will hopefully create a distinctive brand name and eventually brand loyalty.

The campaign includes large-scale marketing efforts through various media including national television, print-outs, web/internet, and out of home advertising vehicles. Each ad shown presented the same outstanding white room filled with objects that acted in a surreal manner after encountering the PS3's cutting edge qualities which include the Blue-ray disc player and the Cell BroadBand engine.

The T.V ads have reached millions, and has already seen 500,000 views on YouTube. furthermore, the print-out campaign is expected to reach out to a staggering number of 40 million people, which will be published on various magazines, newspapers and leaflets. whereas the online campaign will aim at reaching 150 million! through various websites of sports, gaming,music,and lifestyle.

And finally in a true Playstation manner, a website has been developed to engage the PS3's loyal fans and supporters called playbeyond.com, that features unlockable information about the PS3 and it's games. It can also be accessed through the PS3 using the free network web browser.

In addition to all of the above, SONY will provide extensive hardware and software support for the console through 14000 kiosks due to be established worldwide. The kiosks will have sleek and creative designs, and could be connected to the internet for online support and updates, attracting thousands of potential customers to them.



My opinion about the article: well i think that Sony is doing a great job in trying to convince lots of people to purchase the PS3 through various methods as stated in the article above, and it's obviously trying to create a well known and well respected brand name for itself, and it is mainly focusing on America's market since it's market share compared to the Nintendo Wii and the X box 360 is minimal. But through some major technological differences between it and the Wii and X box, and loads of customer service and support, i think that the PS3 is on it's way up the favorable console scale for many gamers worldwide.


link: http://www.nforcershq.com/play-b3yond-sony-marketing-campaign-demystifies-ps3/

H-P Amps Up Cisco Sales Rivalry, Offering Big Discounts on Switches

H-P Amps Up Cisco Sales Rivalry, Offering Big Discounts on Switches

The rivalry between HP and Cisco has taken a new level this year. This happened after HP branched into networking, the market that Cisco dominates. Not only that but also Cisco started selling servers, the computers that power corporate data centers, the market that HP dominates. Hp started into networking by offering 20% off the list price of certain switching systems if they shift away from comparable gear sold by networking rival, Cisco. HP promises networking gear that is easier to manage, more secure and cheaper than Cisco's. HP also disclosed its $2.7 billion dollar aquistion of 3Com, expanding its prescence in the Cisco-led networking market. Cisco still believes that their quality and innovation are the key factors that will make them lead this market. It is true since Cisco invests over 10% of its total revenue in the R&D department. Even though HP bought 3Com, Cisco is still leading in the Ethernet switching market up to 70% of the market share in the third quarter from 67% in the same period last year, while HP held 11% of the market share, the same amount it and 3Com held combined last year.

I think that Cisco will dominate the networking market due to the quality, innovation, and consistency of the products they offer. Even though HP proposed an excellent offer, it still fails against what Cisco has to offer. The numbers show that HP's networking gear is inferior to Cisco's because what HP invests in R&D doesn't exceed 3%.

Revision List for End of Term

Grade 11 End of Term Business Revision Sheet

Pages: Study chapters 9, 10, 11, and 12

Topics included

•  Building customer relationships through effective marketing
•  Creating and pricing products that satisfy customers
•  Developing integrated marketing communications
• Wholesaling, retailing, and physical distribution

Customer relationship management

Introduction: Whenever a firm has a good relationship with their customers, the firm would become more successful in many ways. Customer relationship management (CRM) is to use information about customers to create marketing strategies that develop and sustain desirable customer relationships.

Benefits of CRM: To fulfill a customer relationship management (CRM) we would need to put some efforts into it. However, there are many benefits in improving a relationship between the customer and the producer.

Some benefits:

· Increase in sales, which helps the growth of a firm.

· Marketing Research would be much easier and effective.

· Suggestions of new products and improving of the quality of products.

· Knowing the profitable consumers from the non-profitable.

Successful marketers respond to customer needs and strive to continually increase their profits. CRM helps the firm in a lot of ways which can lead to a better aimed target market. In this way, the firm would have a good reputation among consumers. It also can improve the profits by focusing on the profitable customers and dealing with the non-profitable customers in much less costly ways. It's very useful to have a good relationship with customers, because when having a loyal customer he would tell his friends (other consumers) about the firm. This will help to get other new profitable customers, this may help in the growth of a firm.

How to implement CRM: implementing of a customer relationship management consists of four stage process:

Stage 1: Collecting information

Firstly, the firm needs to collect as much as information as possible to satisfy customer's needs and wants, and concentrate on their buying behavior. Easiest way to do that is by making customers visit their website, online customer services (e.g: an ice cream shop puts on his website "choose your best ice cream flavor for the month"). In that way, marketers can know what consumers like and how they behave when buying a product.

Stage 2: Analyzing customer behavior

Developing new strategies to satisfy consumer's needs and wants, in order to increase sales and grow the firm in a more sufficient way.

Stage 3: Marketing more effectively

Focusing on the profitable consumers and understanding their desires, targeting the most valuable customers.

Stage 4: Enhancing the customer experience

By knowing the needs of the most profitable consumers, it would be much faster in making the most satisfactory products, in this case, the firm would have more time to for other or new customers.

Potential drawbacks: There are a couple of reasons why implementing a CRM does not always have the desired results.

There may be a lack of commitment from people working in the company. By having a poor communication with the consumers.

Depending only on the CRM solution could be risky for a firm, there should be other solutions which can aid the firm's sales and marketing.

Summarized by: Ali ihsan Ali