Cathay to add 27 Jets to its fleet as 2010 Profit Soars

Summary the Article “Cathay to add 27 Jets to its fleet as 2010 Profit Soars”, The New York Times , March ,09,2011.

The Article talks about Cathy Pacific Airways which is one of the biggest airways company in Asia.

The Company has announced that the huge increasing in the oil prices could lead to decline in the profit of the company.  Many companies around the world have concern about the huge increasing in the oil prices. According to the article “Fuel cost which typically make up 25 percent to 35 percent of airlines’ operating costs, also represent a constants element of uncertainty”. That indicates the high oil prices will lead to increase the transportation cost. Increasing the oil price will have an impact about production cost of many products, economic growth, increase the unemployment rate. Therefore, many companies will start to think about using alternative sources to operate their machines and to decrease the production cost, so they can stay in the competitive market.

Sales Promotion

Sales Promotion

Sales Promotion is playing an important role in the business market, and it is a new way to attract more consumers to a new business. According to the book “Basic Marketing” defines the sales promotion “it refers to promotion activities-other than advertising and publicity, and personal selling- that stimulate interest, trial or purchase by final consumers or others in the channel”. (371) I believe that it is the best way to reach more consumers through offering them discounts or coupons to come and check out a new business.  My first experience with the sales promotion was when I received a coupon from Dominos pizza, I wanted to try it.  I went one time to buy from dominos pizza, and I started to go regularly. Therefore, if business or restaurant satisfies customer’s needs, so the customers will have incentive to come to the business or the restaurant for a second time then customers will become clients of the business.  Also, if the companies and businesses are working to attract more customers to come and to check out their business, they do not satisfy customers’ needs. In this way, the customers will not have incentive desire to come to the restaurants or the companies for the second time. As a result, the companies or any business should have marketing strategy to improve their business, to attract customers through sales promotion which is the fast way to attract them, and to satisfy their needs so they will come to buy for second times.

Summary of the Article “Concept behind physical distribution”

These days, we have seen how the price of physical distribution is getting higher and higher. The concept of physical distribution is always trying to decrease the price of the distribution. According to the book “Basic Marketing” defines the physical distribution concept includes “all transportation, storing and product- handling activities of a business and a whole channel system should be coordinated as one system that seeks minimize the cost of distribution for a given customers service level” (318). In the introduction of the article, it mentions that the biggest achievement of the physical distribution is lower cost of the distribution with better customer’s service. Therefore, the sales will increase, and it will help the firm to gain profits. 

According to the Article, two benefits come from good strategy in physical distribution.

The first benefits are to decrease the total cost of distribution through eliminating the number of warehouses. For example, the article gives real examples regarding to this point: “European union’s unification of the elimination of transportation barriers among member countries”. Eliminating the transportation will reduce the total cost of distribution, and it will reduce warehouse numbers, as well as, the cost of warehouses will reduce also.

Secondly, the physical distribution system can help the companies to determine the demand for a specific product, so they can send the goods fast. In this way, the company will reduce the price of warehouses. As a result, the company will gain profit for selling their product in a high- demand market.

In summary, physical distribution systems is very hard to understand, especially in unstable economic situations. 

           

Summary article “Mail Call”, www.promomagazine.com

Summary article “Mail Call”, www.promomagazine.com

Article explains the direct marketing and relation with promotion role. According to the book Basic marketing the definition of direct marketing “is a direct communication between a seller and an individual customer using a promotion method other face to face personal selling”. (295) First of all, direct marketing has a relation with promotion, and most of the sellers are trying to reach more consumers through sending a promotion to their customers or the consumers. In fact, mail is best way to reach consumers.   sellers are sending discounts and coupons to their customers through the mail. For example, in the article “Mail Call” it mentions “The casino hotel operator mails about 150 pieces per year to its millions of members with offers that include hotel discounts, coupons to redeem for $10 cash” In this time the mail is playing important role reaching customers, and this is the example that best explains  direct marketing.

Secondly, most of the sellers have a rich customers database which includes all the information about their customers; in this way, the sellers can reach the customers easily and without trying hard to find information about their target market.

In summary, direct marketing is increasing in these days, and it is becoming the best way to reach customers, and try to attract them.

Brand Familiarity

Brand Familiarity is composed of five types of the brands, and they are brand rejection, no recognition, recognition, preference, and insistence. In these days, the people are not willing to buy a product that they are not familiar with. The only reason is they are not willing to buy those products because they do not want to take risk or they do not want to lose their money for buying a bad product. There are the kinds of people who do not want to buy unfamiliar product because they do not want to take a risk. I believe that everyone should take a risk to buy unfamiliar products, so maybe they can discover the products advantages. I think that the companies should not spend a lot of money to gain brand recognition because the brand recognition could come through and offer different advantages. I prefer to buy a product that is unfamiliar if they offer low price, and advantages for buying a product. To be specific, there are some companies who do not have good prestige in the market; they are trying to attract more consumers through offering for them more advantages to buy the product. In summary, the brand familiarity is playing important role in the business market, and small companies cannot stand in the competitor market. There is only one solution that helps the small companies to stand in the market which is offering more advantages for buying the products, and satisfy consumer needs

Summary of the Article “Use Demographics to Understand Your Target Market”

Most of the companies are focusing on the target market before starting their business. The Target market is the first part of the marketing strategy, and target market is focusing on group of consumers that company wants to target. The Article “Use Demographic to understand your target market” gives two steps about the target market. The first step is identify customers, and the second step is to find consumers needs. Company and entrepreneur will ask a question “How can the company or entrepreneur identify customers or their needs”?

First of all, to identify customers, the company or the entrepreneurs have to look for demographic area. They have first to determine the area that they are planning to target, then they have to do research to find the population present, age, income. They can find these entire statistics through the US department of commerce.

Secondly, the company or entrepreneurs have to find out lifestyle in the area that they are going to target. To be specific , they have to discover the people lifestyle in the area like  are people conservative in spending or are they spenders , do they like outdoor or indoor activities , what is the weather like ? All these questions will help the company or entrepreneur to find what can they sell, and it helps them to determine the price.

Thirdly, the company or entrepreneurs have to satisfy the consumer’s needs in the area, and they have to discover that what are people need in this area? Maybe they have do not have restaurant or health club?

In summary, these entire steps that mentions in the article will help the company to discover their consumers through identify the group of consumers, and find their needs.