Computer-aid financial tools have helped multinational firms generating billion dollars of profits; but software developers who have drawn all considered cases for outcomes cannot win market changes. A story of Goldman Sachs closing its Global Alpha Fund is convincing evidence. Most computer-aid financial tools can reduce human works and brainstorming processes at a lower fixed cost, but human managers and market-watchers are still on a payroll list to avoid a similar case. Online trading forms and market analytic tools are designed to meet customers with more effective and accurate results, but a final decision is still in a human decision-maker. Bloomberg, The Economist, Reuters and McKinsey&Company have invested in developing computer-aid tools for at least three advantages:
- Lower analyzing and number-punching-process expenditure
- Increasing computerized and standardized procedures and results
- Transparency and globally interactive platforms
With three advantages available uptime 24x7, a consultant firm can process both standard services and customized requests from clients. Customers’ brand interaction is a first round for producers and service firms to understand. Discovering hidden values in business deals and prospective deals for business firms or clients is a second round. Offering profoundly market analyses on fast-growing and potential markets like China, Russia, India, Brazil and ASEAN countries is a third round to generate new incomes. Mapping global and local brand values is a fourth round for a business firm to build its own brand or connect its brand to other brands. Understanding influences of small and medium companies in a broader view to a market or the global market is a fifth round for improving sales revenues in interdependent market environments. Developing so-called business intelligence and market intelligence for brands over social networks worldwide is a sixth round of gaining new incomes. Evaluating strengths and weaknesses of companies in a same market, same sector and business function is a seventh round of offering new solutions practical and feasible to deliver win-win deals. Exploring static and dynamic data worldwide is a eighth round of helping corporate clients managing their business goals efficiently and profitably – business plans, Merger and acquisition, investment plans, partnership plans, joint-venture plans, lending scales and new IPOs. Building the database and information system of benchmarks and sales indexes is a ninth round of serving business clients over their performances and sales goals. Developing insights from historic records and macroeconomic patterns and demographic changes is a tenth round of mapping a future market at different scale. Matching potential markets and corporate cultures in target markets is an eleventh round for lowering risks and increasing return-on-investment because not all companies are compatible to such market opportunities. Do not invest what others have invented is a twelfth round of searching contemporary sales practices in most successful sales firms to develop so-called embedded packages of sales strategy tools.
A company can learn new values from old values used at other successful companies. In reality, a successful story is made by more than one business firm. Why? A company may trade shares in stock markets; having loans from banks; buying materials on credit terms from suppliers; using components from suppliers; outsourcing in-house processes to third-party firms. That means the success of the first firm connecting to other successes of related firms. The global logistics market is served by many big, medium and small companies, but for efficiency and profitability, more companies have shared their resources in new concepts of soldiering brands for new values. An airplane of one logistics company can carry packages from other logistics companies to earn marginal profits.
Innovation does not mean to increase cost or prices for new products, but connecting available technologies and know-how in markets to embed appropriately and stylishly into new products at a similar price to generate a high profit. Such concept can explain how to open the network of R&D projects to other companies’ R&D projects to share values at lower investment cost.
A company may match sales revenue goals not by a number of salespersons and staff, but equipping sales managers and lead team managers with effective and innovative tools to achieve sales goals. Sales strategies and real earning targets are two different boundaries in which a sales manager may or may not really touch true concepts for each annual sales revenue goal. Why? Customers are sensitive to market conditions – jobs, income, technologies and consumer benefits – so that the former can switch from one brand to another. A sales manager is supposed to grasp all necessary and effective tools of sales strategies to keep their sales revenue numbers feasible and achievable. A company can establish one online or in-class seminar of sales tools and strategies to inform all up-dated tools to sales team members. The shorter time of inventories at warehouse the higher earning income a company can gain in a specific period.
Products and discount values are designed to produce three primary benefits – (a) competitive advantages to other rival companies, (b) reducing base cost to customers, and (c) generating marginal revenues for a business firm. Banks have increase monthly fees and other transaction fees based on their annual expenditure to drive customers away to other low-cost financial firms. A bank has more reasons to lower fees on groups of customers based on their preferences or choices or monthly deposit or current balance value. With newly designed packages, a bank can lure new customers and entertain loyalty customers for years to come. Customers can have more than one account – checking or saving; they also need other types of accounts – credit card, investment, and trading.
Talking about developing and emerging markets, a corporation may consider plans of priority over demographic and geographic characteristics based on households’ incomes, educational backgrounds, spending behaviors and spending cultures. With such objective market analyses, a corporation can allocate right budgets on high-priority market zones – large cities, large towns, districts, and province. Overall trade values in such area can explain how a corporation can achieve a target return on investment.
New market opportunities exist in less maturing markets where established brands and new brands are flocking to compete to one another. Consumers in those less maturing markets have different values of spending power, educational backgrounds, social statuses and global trend appetites. Consumers expect products and services with different quality and quantity values. Not all available features or functions of high-end products and sophisticated services are expected from customers in one or other markets. That is one of reasons for a company to add more or subtract a few to reduce a price of products and services meeting target markets. A car or Smartphone which is marketed to developing and emerging markets can be lower prices not for lower quality but expected features and usages.
If most consumers watch TV programs more than one hour a day, producers and service firms will have more chances of exposing their brands in seconds-lasting commercials. When prime shows or final sport-game is broadcasted over TV channels nationwide or worldwide, more corporations are willingly to pay millions of dollar for a few seconds of commercials to reach a brand message to hundreds of viewers or billion of viewers worldwide. From a new perspective of marketing budget and return on investment, a firm may scan so-called priority media of marketing for a higher effectiveness and return on investment. Consumers today spend more times on internet and social network activities than TV screens. Marketers may direct marketing budgets to a right place where brands are connected to target customers.
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