How Exposed Is Taiwan to Globalization?

 How Exposed Is My Country, Taiwan, to Globalization?

To answer this question and also to succeed in business, it is critical to understand what is globalization first. It is not as simple as open your browsers and link to a foreign website. It is an external environment to operate. And like any other things, views of globalization are not always positive or negative. There are some benefits and there also some unavoidable harms. 

So, what is globalization? Purchasing something from another country means globalization? Why does the Fed decide to increase reserve and interest can influence the world's economy? Globalization cannot be described by only one dimension or aspect, it has many dimensions such as economic, cultures, technologies, businesses, environment, and geography. From a business and economic point of view, globalization can mean the increase of economic activities in the world. Simply to say, trades of goods and services, and financial flow internationally, are increasing around the world. Not only financial flows and trade but also information and people are moving more and more frequently around the globe.

Now, Taiwan is the crucial semiconductor manufacturing country, providing more than 50% of IC(Integrated Circuit) worldwide. So, from the economic point of view, Taiwan engaged in many trade and exchanges internationally. According to the sales data of vehicles in 2020, the market share of domestic-made is around 52%, the other 48% is foreign-made cars. However, these are not enough to tell that how exposed is Taiwan to globalization. Based on the five elements of economic globalization which are international trade, foreign direct investment, capital market flows, migration, and diffusion of technology, and each one represents 1 mark, then we can measure how exposed is Taiwan to globalization.

i. International Trade

As I mentioned above, the market share of domestic-made is around 52%, the other 48% is foreign-made cars. These cars are international trade. Foreign brands such as BMW, Volvo, KIA, Lamborghini, and Porsche, sign agreements with local retail companies and trade their cars with these companies. (+1 point)

ii. Foreign Direct Investment

Instead of just import their cars, some automobile companies such as Toyota, Nissan, and Mitsubishi Motors choose to invest money in production facilities in Taiwan so they can produce and sell their cars in Taiwan. It is an example of foreign direct investment. (+1 point)

iii. Capital Market Flows

Taiwan Stock Exchange provides services for individual and institutional investors such as ETF, domestic and foreign stocks, bonds, and Futures. In Taiwan, investors can buy and sell shares of Taiwanese companies and some shares of foreign companies. However, its value is just about 1.27% of the total value in the world. (+0.127 points)

iv. Migration

In Taiwan, some jobs like fishermen or caregivers in nursing homes are the most common jobs that hire foreign workers. Most of them are from Myanmar, the Philippines, Indonesia, and Vietnam. These four countries divided by 233 countries worldwide is around 0.017. (+0.017)

v. Diffusion of Technology

Now, Taiwan is the crucial semiconductor manufacturing country, providing more than 50% of IC(Integrated Circuit) worldwide. Therefore, I think the diffusion of technology is not too hard to get. However, Taiwan is still a developing country, so a full mark is not the case. According to the Human Development Index in 2020, Taiwan is graded at 0.91. So, I will use that data as the point of Diffusion of Technology in Taiwan. (+0.91)

To summarize, Taiwan gets 3.054 points on the five elements of globalization. Although it does not precisely describe the whole map of how exposed is Taiwan to globalization, it provides me a direction to evaluate it. If we do the math, 3.054 divided by 5, the result is approximately 61%. I know it is not totally correct, but I think my ability to evaluate economic globalization will be improved after learning this course.

The Political, Economic, Technological, Social, Environmental, or Other Impacts of The Globalization Trend on Taiwan? 

Obviously, the most popular trends recently are electric vehicles, AI, self-driving vehicles. Politically, the government of Taiwan has announced the "Electric Motor Vehicle Industry Development Promotion Plan" in August 2009 and the "Smart Electric Vehicle Development Strategy and Action Plan" in April 2010. In order to encourage and support the development of domestic electric vehicle-related industries, the "License License Tax Law Amendment" Extends the exemption period of electric vehicle license plate tax. The "Air Pollution Prevention and Control Action Plan" was launched at the end of 2017. One of its key tasks is the "ban on the sale of fuel oil vehicles." To electrification, In 2030, urban buses will be fully electric and Taiwan will enter the age of fully electric vehicles in 2040. 

Economically, brands of other countries and products from foreign producers will become more and more common in Taiwan since the government keeps trying to sign FTA(Free Trade Agreement) with multiple countries. In addition, foreign direct investment such as Amazon, Facebook, and data centers, Intel developing centers, even Tesla Giga Factory in the possible future, is changing Taiwan dramatically.

Environmentally, since the 311 event in 2011 known as The 2011 earthquake off the Pacific coast of Tōhoku on 11 March. The earthquake triggered powerful tsunami waves that may have reached heights of up to 133 ft in Miyako and traveled at 700 km/h inland. Residents of Sendai had only about 10 minutes to evacuate. The tsunami hit Japan hardly and the Japanese National Police Agency report confirms 15,899 deaths. The tsunami also caused nuclear accidents, the Fukushima Daiichi Nuclear Power Plant was damaged by the tsunami. After the news, the president of Taiwan Tsai Ing-Wen declared that we are leaving nuclear plants. Now, Offshore wind power and other green power plants are the future plans of Taiwanese electric trends. Disasters bring death but also bring rebirth. 

Socially, step by step, Taiwan keeps trying to join as many international organizations as possible to gain its positions. Also, more and more Taiwanese people choose to study university abroad. Due to the lower cost of international travel and the use of Facebook, Instagram, and other social media, Taiwanese are making friends or even getting married to people from any other countries.

Technologically, as mentioned above, automobile companies such as Toyota, Nissan, and Mitsubishi Motors choose to invest money in production facilities in Taiwan, so the local automobile companies and their workers can learn from them. In the future, the local companies can learn more knowledge and technologies from direct investment.

The Negative and Positive Impacts

Positive Impacts

i. Although, In Taiwan, some jobs are replaced by AI, robots, and foreign laborers. But more jobs and opportunities are created by foreign direct investment. Self-driving buses need more related engineers to maintain and monitor them. 

ii. Since The 2011 earthquake off the Pacific coast of Tōhoku on 11 March, Taiwan speeds up its investment in green energy plans. 

iii. Many traditional cultures in Taiwan such as sexual inequality has ameliorated and changing due to more and more international information exchange and education.

iv. More international companies operate in Taiwan means they have to pay the government taxes and hire laborers in Taiwan.

v. Many companies such as Taiwan Semiconductor Manufacturing Corporation and Foxconn Technology Group now gain their profits through operating internationally. The local financial institutions also take advantage of globalization to expand their businesses.

Negative Impacts

i. Many jobs like bus drivers may disappear in the future. For instance, self-driving buses are now operating in a few areas have replaced more and more drivers. 

ii. Some protectionist policies such as tariffs, may cause inequality in trading goods and services. 

iii. International big brands such as Starbucks, McDonald's, and KFC, compete with small local companies, make them harder to operate. Moreover, if those companies purchase raw materials and real estate, the prices will go up.

Reference

Malamud, V., & Rotenberg, Y. (2010). Globalization: Opportunities and threats to developing country business. Retrieved from https://my.uopeople.edu/pluginfile.php/1183211/mod_book/chapter/272333/BU1307_Unit_1_/UNIT_1_-_Globalization-_opportunities_and_threats_to_developing_country_business_-_CNX.pdf

A Case Review, Nike's Globalization

Introduction

Globalization is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and culture exchange. It has been taking place hundreds of years and has speeded up enormously over the recent half-century. Globalization has resulted in increased international trade, more companies are now operating in more than one country, greater dependence on the global economy, freer movement of capital goods and services, and greater recognization of international brands. Improved international transport, containerization, and improved information technology all contributed to the speed of globalization.

A Case Review, Nike's Globalization

Nike was founded in 1964. Now, it has become a sportswear multinational corporation worth over $100 billion. So, how that magic happens? The story started from just a small distribution that imports Japanese shoes to the US. After operating a store and kept trying to improve the products, Nike could not keep up with the increasing demand. Every new shipment received sold out quickly. Nike's founder has to deal with the issue if he wants to expand his business. So, Nike started to make their own products and branding. Instead of locking itself into an exclusive distributor, Nike can now control all the production and grows its revenues rapidly. 

An Incorrect Expansion Strategy

However, Nike's growth wasn't always smooth. In the 1990s Nike came under scrutiny for various unethical practices. Its expansion strategy was facing a lot of challenges. As Nike gains more and more eyes on its success, unethical news was follow up. The most famous one was the incredibly low wages for their workers in developing countries such as Vietnam, Thailand, Indonesia, Malaysia, China, and South Africa, although it looks like Nike has paid enough living wages. Obviously, Nike took the advantages of globalization to lower its cost of production by outsourcing those jobs to low-wage countries and keeping the high prices of its products to gain tremendous profits. 

How Does It Happen?

So, how does Nike came to that situation through its expansion strategy? Society always wants companies to create high-paying jobs and protect the environment. But on the other hand, these companies want to reduce costs incurred to comply with environmental regulations in the production and improve labor productivity. Lower cost and higher prices of their products are all companies trying to do. But, modern information technologies and changing culture hit the old school concept seriously with negative brand images. What do think if a liar tries to sell you a product compare with a friendly honest person? At some point, trade is built on trust. But information asymmetry makes us hard to trust sellers we unfamiliar with. So, we consider the brands we trust. However, it may not a part of Nike's expansion strategy. During that period, Nike was focusing on its cost of production rather than the possible damage to its reputation.

Positive and Negative Impacts

However, it was not always bad and evil. There are still positive and negative impacts with its strategy. Although Nike's reputation was damaged by those negative news, some positive effects are indubitable. Creating more jobs is one of them. Due to the direct investment to the production infrastructures, these governments also benefit from taxing those workers and Nike. The skills of these countries are also been improved. Furthermore, other companies are also learned from the event, start to rethink their strategies, and improving sustainable development. Negative impacts such as child labor, cutting jobs when the wages are no longer cheap, and environmental pollution while producing are also serious issues that Nike has to put its effort into.

Nike's Response

How did Nike respond to these situations? In order to keep its successful business, Nike learned from its past. Some actions must be taken when the dilemmas occur since this dilemma has direct impacts on not only the quality of products but also the reputation of Nike. To handle these issues, Nike adjusted its strategies for the internal and external environment. For issues like working conditions, Nike established a code of conduct to force its contracting factory to follow and requires its suppliers to pay workers at least the local minimum wage, to make sure the workers get their benefits and improves working conditions. With these approaches, Nike successfully improves the image of the company. When the working condition was improved, workers became to think the company positively. Nike now has abundant resources in persuading the media to get rid of negative thoughts about it. Nike also has a grading system for all its suppliers to reflect the actual situation of working conditions and to prevent unethical issues.

Share of Opinion

In my opinion, Nike's responses are an excellent way to reverse its negative reputation in the past. However, I think some other alternative responses are also great for the same purpose. For instance, Nike can establish a subsidiary in its suppliers' located countries to manage all the supply of its products under its control and also offer some cheaper products to these countries. Or, as a sportswear company, Nike can also promote the atmosphere of physical activity to those countries. It is a win-win strategy since Nike improves the health of the people in suppliers' countries. Moreover, as the income increased and the atmosphere is created, these countries are also contributing to Nike's sales.

What Are The Consequences?

What would the consequences have been then? Another Nike’s reaction was to announce a video of its contracted supplier in Vietnam and Indonesia, Thailand, and China to convey the message, “Nike is a responsible company with a safe working environment, happy and satisfied workers.” However, trust is hard to build but easy to lose. Consumers need more time to reaccept it.

Reference

Nike solution for the ethical dilemmas marketing essay. (n.d.). Retrieved April 13, 2021, from https://www.ukessays.com/essays/marketing/nike-solution-for-the-ethical-dilemmas-marketing-essay.php

Why I Am Loyal to Some Products or Service Offerings and Not to Others?

 Why I Am Loyal to Some Products or Service Offerings and Not to Others?

I have been loyal to Nespresso's coffee products for almost 3 years. I think the main reason why I loyal to a product is that it is a sufficient quality product with an affordable price and great brand image. Therefore, I can save my browsing time by making deals with the same brand over and over again. If I transfer my coffee consumption to other brands, I must spend a lot of time doing research and probably fail several times to get the right product.

iPhone is another example of I loyal to a product and starts with iPhone 4. Again, It's a sufficient quality product with an affordable price and great brand image. So, I don't have to make decisions on so many brands of smartphones. Moreover, if I love the iOS system, iPhone is the only option. With the Android operating system, there are still so many brands for me to make the decision. Therefore, simplifying the decision-making steps is the key to induce more sales.

Mac and Windows is also an example of why I loyal to some product or service offerings and not to others. I was a Windows 98 user until Windows 7 was released. Transferring the operating system is a big thing for me because I have to change my habit, give up some apps that only run on Windows, and adapt the whole new interface. However, when a product is no longer a sufficient quality product with an affordable price and great brand image, I have to go for sure. Although there are so many products with Windows, I am tired to search among different computer manufacturers. The same idea, if I search for a Mac, Apple's products are the only choice. 

How Does My Relationship with These Products Change Over Time? 

My relationship with Nespresso is not as good as I think since its machine does not satisfy my need. I was trying to practice latte art before, so I purchased the Creatista Plus after watching its intro on Youtube. However, I find it is not a good idea after I do deeper research on it. Now, it is struggling inside my heart. Buying another new machine means an additional expenditure, additional effort, and more time spending on finding a greater product. On the other hand, my relationship with iPhone and Mac is good so far. They satisfy my needs and even stronger by upgrading their systems frequently over time. 

In conclusion, I think there is no such relationship that can exist forever without putting any effort into it. Companies must effectively manage their relationships with customers over time. Trust is hard to build but easy to lose, and every devil was once an angel.

In the past, I have been dissatisfied with the Nespresso products to which I am loyal. As I mentioned above, the Creatista Plus did not satisfy my need. However, I do not transfer to any other companies yet because I am waiting for a cue to do it, such as the machine is broken or anything I don't wanna endure anymore. 

Pricing Objectives, Profit-Oriented or Sales-Oriented, Penetration and Skimming Pricing Strategy

 Introduction

Many people in Taiwan can wait in a long line for free fried chicken or Starbucks' buy one get one free, even if it takes hours. But do you know how do profit-seeking companies generate profits if they frequently offer free goods and services for special deals? Does a $0 price tag equals a free lunch? Is free products or services a good pricing strategy? Put on a price tag for products and services is essential for every profit-seeking company. However, their customers must feel they are getting enough value for the price paid. For instance, a Big Mac® combo meal can be very different while put on different price tags such as $5.99 or $12. Here is the major concept we are going to learn, the pricing objectives. It is the goals that give directions to the overall pricing processes and the crucial step in pricing. Each pricing objective requires a specific strategy to achieve different goals.

Pricing Objectives, Profit-Oriented or Sales-Oriented

Profit-oriented pricing is based on profit maximization or a target return on investment to guarantee each sale is making money. However, it does not means companies should simply add up their raw materials and production labor expenses. Other crucial costs such as advertising costs, commissions, and freight. In short, all other costs in getting the product to be purchased are counts.

Sales-Oriented, on the other hand, generally focuses on maximizing sales to generate as much revenue as possible, regardless of the profits. Here's an interesting part, revenues are not the same as profits. A company can sell 1,000 espresso coffee machines for $1,000,000 in revenue, but with zero profit. That happens sometimes when companies are struggling financially, so they have to generate cash quickly.

In summary, I think both of the two have their own pros and cons. For instance, if Nespresso decides to lower the prices of its machines to make them more affordable, the profits and revenues will be shrinking in a short period. However, when more and more people are using its machines, Nespresso is targeting more coffee capsule sales since more capsule sales mean more revenues and profits. Therefore, based on what kind of return and outcome that a company is trying to achieve, the pricing objectives are very different. In the Expresso's case, if the machine is too expensive, it also influences its capsule sales. However, too cheap to own an espresso machine will make the company cost too much to get future income. 

What Factors Do Organizations Consider When Making Pricing Decisions? 

As we all learned from the demand and supply model in Economic, demand, and supply are the factors that influence the equilibrium prices. Base on the model, consumers are on the demand factors whereas enterprises are on the supply side. Generally, companies tend to supply more when the price is upper or the demand is higher. Therefore, the demand for a product or service is the foundation of firms making their pricing decisions. 

However, demand is not the only thing that should be considered. If the demands are the necessary products such as food, water, or electricity, governments often regulate them by law. In addition, competitors also playing a crucial role in this equilibrium game. For instance, KFC and McDonald's are very similar fast-food restaurants. They closely monitoring each other's menu, learn from each other and compete with each other. Typically, the costs of a product are the first thing we think about. But remember, don't make it become the ONLY thing you considered before you release a product. 

Penetration and Skimming Pricing Strategy

Penetration pricing strategy is used to quickly gain market share by setting a relatively lower price to induce customers. It is commonly used by new entrants. For instance, a Taiwan coffeehouse chain LOUISA entered the coffeehouse business by setting more affordable prices of its coffee drinks compare to its major competitor Starbucks in 2006. Now, LOUISA opens more than 500 coffeehouses in Taiwan and exceeds the number of Starbucks stores.

Skimming pricing strategy, however, is a product pricing strategy by charging relatively higher initial prices. For instance, as the costs reduction, Tesla cuts the price of its Model 3 from $46,990 to $45,990. As the demand of the first customers is satisfied and more electric car manufacturers enter the market, Tesla now lowers the price to attract another, the more price-sensitive segment of the consumers.

Reference

Tanner, J. & Raymond, M.A. (2015). Principles of Marketing. University of Minnesota Open Textbook Library. Licensed under a Creative Commons by-nc-sa.

public relations, sales promotion and professional selling. How these three concepts are related? Which of the three is more important?

 The topics of Unit 7 are public relations, sales promotion, and professional selling. Although these three concepts are in different chapters, they are related and influence each other. Recall that public relations are the activities of managing the release of information between an individual or an organization and the public in order to affect public perception. Sales promotion is one of the elements of the promotional mix such as advertising, personal selling, and direct marketing. In professional selling, we learned mostly about what salespeople do and what roles do they play(such as create value, gathering information, and managing relationships).

Generally, all these three activities are trying to find the demands, satisfy the needs, and build stronger connections. Professional selling is not just about the salesperson or the products and services. It’s about the customers and fulfilling their needs, helping them make the world a better place. Public relations can help the world know what organizations are doing for upgrading our future. For instance, loyalty programs are designed to get repeat business. Not only it benefits businesses but also helps people by saving time for searching their needs. 

I find it is hard to choose which of the three concepts is more important because they influence each other in some way. For instance, bad public relations lead to bad sales no matter how hard you work on the sales promotions. You can purchase similar products from different companies with different reputations. The key is that the next time you want to buy the product, you will search the companies you like first. 

Consider it from the reverse, if we put all the effort into public relations since we consider it as the most important one. It like putting a new engine inside an old car's body. The car can move for sure, but it cannot handle the powerful engine. Although I know Lamborghini and Ferrari are excellent, I need the final steps to help me give up the other option such as a better price, lovely salespeople, a loyalty program, or any other factors. That is no doubt that great public relations efforts can help enterprises build rapport with their customers and supplement their sales efforts. However, sales promotions and professional selling are still great or even necessary tools enterprises should consider.

Reference

Tanner, J. & Raymond, M.A. (2015). Principles of Marketing. University of Minnesota Open Textbook Library. Licensed under a Creative Commons by-nc-sa. 

Salespeople play three primary roles? How does each type of salespeople create value? Do ethics get in the way of success in sales?

Introduction

Did you ever think why we still need salespeople in the modern age of advanced technology? One of the possible reasons might be it is human. However, salespeople often mean more costs for companies since they have to pay for their services. Although the pros and cons of salespeople are varied in different fields, they still represent a type of strategy that companies use to increase their sales. Typically, salespeople must create value for what they are selling, managing relationships, and gathering information. For these three roles, companies are willing to pay for what they do since it is a win-win strategy. 

Create Value

Generally, salespeople create value by understanding the needs of their customers and then create solutions to meet those needs. So, how do salespeople create value for what they are selling? Do ever think why you need a teacher to help with your learning? You can learn almost everything online through the internet, but how you feel if you have a Spanish teacher correcting your pronunciation? That sounds like very old school, but the point is the interaction between you and a teacher. Salespeople are the same idea. They serve and interact with customers and business owners to get what they need by benefiting both sides. 

However, salespeople aren’t the most appropriate channels for companies in all situations when companies are trying to sell at a very low cost may make retail stores or online selling more attractive. For instance, instead of hiring more service agents, Standard Chartered Bank in Taiwan created a “chat with Stacy” feature, the ability to engage in dialog helps customers better understand their customers and their needs and then create valuable solutions for them. 

Salespeople can be categorized by the customers they work with, by the size of their customers, or by their activities. Here we are using activities as the basis to categorize four basic types of salespeople. They are missionary salespeople, trade salespeople, prospectors, and account managers. 

A missionary sale such as Rainforest Alliance is a form of personal sales in which the salesperson provides information to an individual who will influence the purchase decision. By partnering with brand affiliates, a company empowers individuals to get the word out about their products, driving sales in exchange for a commission. However, nearly anyone can participate the affiliate partnerships, but no sales background is required.

A trade salesperson such as Amway salespeople help retailers promote and sell products to consumers. They are someone who provides retailers assistance with merchandising and selling products to consumers.

The prospector is a salesperson who is trying to find prospects or potential customers. This type of salesperson is responsible for identifying and acquiring new customers for enterprises. If some potential customers have needs but lack information about where to look for, the prospectors often knock on them and drive their success by prospecting. Mortage salespeople often put most of their efforts on potential customers who need some cash on hand to purchase something they want to pay in installments.

Account managers are responsible for satisfying clients' needs and persuading them to become loyal clients. After a prospector finds new clients, it is a good time to turn them over to an account manager for building long-term relationships. For instance, auto insurance companies are trying to keep their existing clients because the more existing clients they keep the more income auto insurance companies can get for them.

Managing Relationships

People are emotional animals after all. Relationships mean stronger connections between you and your clients, so they tend to believe that you are doing good for them. If you like or believe in your high school teacher, then he(or she) has a better chance when persuading you to purchase a specific textbook. However, everyone's time is limited, they have to decide which client is worth the shot.

Gathering Information

If you a soldier on a battlefield, you know what weapons your enemies are using. Salespeople do their jobs mostly outside the firm and in the field. Therefore, they get first-hand news about what competitors are doing. Like playing chess, what your competitor is moving is counts. They influence your next move and even who is going to win. However, after getting the information, you still have to send it to the right guy, the right decision-makers.

Do Ethics Get in The Way of Success in Sales? 

I think that depends on what do you mean by "success in sales" and how you definite your "success". As I mentioned above, relationships mean stronger connections between you and your clients. Therefore, I think being integrity is always the best choice, and fostering an ethical culture on your sales team or salespeople is necessary. For your clients, it means your products and services can be trusted. Likewise, you will purchase items from the companies you trust when you are a consumer. Companies with higher ethical standards experience greater customer loyalty, satisfaction, referrals, and lead to greater long-term profits. 

However, oftentimes, the most dangerous and common situation in selling is focusing on immediate profits and short-term sales goals. With a narrow perspective, salespeople tend to make deals that bad for the long-term benefits. It hurts both the enterprises and the customers, and both of the two are losers. Enterprises lose their customers and the customers fail to get great deals. Moreover, salespeople tend to make promises that almost impossible to deliver. 

Reference

Tanner, J. & Raymond, M.A. (2015). Principles of Marketing. University of Minnesota Open Textbook Library. Licensed under a Creative Commons by-nc-sa.

The Structure of The Logistics Process in Taiwan

The Structure of The Logistics Process in Taiwan

The new generation of logistics war has started in Taiwan. The demand for efficient logistics has become an all-time high. Traditional logistics companies cannot fully satisfy such high demands. E-commerce in Taiwan such as PChome and momo have built their own warehousing and truck fleets to race against time. Moreover, the foodpanda and UberEats in Taiwan have joined the war for the food delivery market, as they know the demand has been unsatisfied due to the development of information technology. PChome and momo highly relied on the cooperation of logistics partners in the past, but now they have started to build their own logistics processing centers. The logistics battle has been transferred from the labor-intensive and enclosing traditional thinking to the competition for talents and a new type of retail. Regardless of evolution, what remains the same is that the logistics industry will always race against time.

Here are the steps for suppliers to cooperate with PChome24h:

1. Suppliers sign agreements with PChome and pay for the marketing and fulfillment services. 
2. Suppliers send their products to PChome's warehouses nearby.
3. PChome checks and confirms the received amounts of products with suppliers.
4. Products have now listed on PChome24h.com and available for purchases.
5. Consumers purchase some products and pay for them.
6. PChome confirms with banks and third parties for this payment.
7. Payment confirmed and orders pass to its fulfillment centers
8. PChome fulfillment centers start to pick and move these specific items into boxes.
9. Products are now in the boxes and get in the trucks stand by them. (As I mentioned above, those trucks are from third-party logistics firms and some of them are from firms owned by PChome.)
10. Products are on the trucks and heading to consumers.
11. Consumers get what they ordered earlier.

However, not everyone is feeling good at what they actually get. Therefore, some reverse logistics are unavoidable. According to the return policy of PChome, here are the steps for returning a product.

1. Consumers request returns on the PChome24h.com returning page.
2. PChome receives the message and notifies the logistics firms.
3. Logistics firms carry the returning products from consumers to suppliers.
4. Suppliers confirm the completeness of the products and send the messages to PChome. If the products cannot be returned because of some serious damage, the suppliers will report and reject the return.
5. After receiving the yes or no messages from suppliers, PChome notifies the consumers of the results.
6. PChome does the return of payments.

An additional suggestion for reducing the returns is that PChome should manage its website and teaches their suppliers how to provide more information of their products to reduce their returning rates and increase their profits.

Outsourcing and Offshoring, Just-In-Time and Vendor-Managed Inventories, Marketing

Introduction

Today, the idea behind the term value chain and supply chain is that the supply chain partners can do more for you rather than just perform basic functions. For instance, in Taiwan, PChome24h.com cooperates with the great partner T-Cat to do the transportations for it, in order to achieve the 24h-delivery. The customers not only enjoy the products they buy, but also enjoy the fast delivery, and reduce their waiting time. Besides, each partner should help you create more value for customers.

Outsourcing and Offshoring

Both offshoring and outsourcing reduce costs but in very different ways. Companies like Amazon or Walmart negotiate contracts with third parties to perform specific functions such as transportations and POS(Point of Sale) systems by outsourcing to other companies. By doing that, they can reduce the costs since they don't have to put too much money on them like open a new company to do this business. Always remember that it is vital to find a partner you can trust and specializes in the task at hand. Offshoring, on the other hand, sends internal jobs to be performed in another country. An example of offshoring is for a United States based company like Tesla to produce their electric cars in Asia and Europe to locally supply its products.

How Can Just-In-Time and Vendor-Managed Inventories Add Value to Products for Customers?

Most companies desire to lower their cost on their inventories. However, to lower the amount of inventory and still maintain the stock they need to satisfy their customers is a hard choice. An example of a company that uses just-in-time inventory systems is Toyota. In Toyota, "Just-in-Time" means making only what and when it is needed. It efficiently eliminates waste and improved productivity. In addition, companies with just-in-time inventory systems keep very little inventory on hand so they can reduce the cost of inventory.

Some companies do this approach by contract with their suppliers to ship and manage their inventory as they need it. This is vendor-managed inventory. Amazon's fulfillment centers manage the inventories for its business partners who sell products on Amazon.com. Apple also utilizes a vendor-managed system and carries very few component parts. Its chips suppliers carry them. This helps keep Apple’s in-inventory levels low. And by keeping track of its customers and what they are ordering, Apple has a better understanding of what they might order in the future. So Apple can order the right chips at the right time within the right amounts. Apple also purchases components and materials from various suppliers, then gets them shipped to the assembling plant in China. From there, products are shipped directly to consumers who bought from Apple's Online Store.

What Place Does Reverse Logistics Have in A Company’s Supply Chain? 

Reverse logistics stands for all operations related to the reuse of products and materials. More precisely, reverse logistics is the process of moving goods from their final destination for proper disposal. When a manufacturer’s product moves through the supply chain network and reaches the distributor or customer, any process or management after the sale of the product involves reverse logistics. The product would travel in reverse through the supply chain network to retain any use from the defective product. 

Reverse logistics presents one of the biggest operational challenges in E-Commerce freight logistics due to the cost of processing returns. Effective reverse logistics should have direct benefits such as improved customer satisfaction, decreased resource, reductions in storage, and distribution costs. When a return occurs, the returned product will be collected and sent to the distribution center. Meanwhile, the relevant information will be transferred to the return processing center.

The traditional logistics when products are required, they will be shipped to the distribution center and then shipped to the retail stores. It heading only from sellers to buyers. However, reverse logistics is very different. Shippers in response to actions by consumers, even though they do not initiate reverse logistics activity.

Reference

Just-in-time - philosophy of complete elimination of waste. (n.d.). Retrieved March 06, 2021, from http://www.toyota.com.cn/company/vision_philosophy/toyota_production_system/just-in-time.html

Lu, C. (n.d.). Apple supply chain - the best supply chain in the world. Retrieved March 06, 2021, from https://www.tradegecko.com/blog/supply-chain-management/apple-the-best-supply-chain-in-the-world

One-to-One Marketing

Introduction

One-to-One Marketing is a customer relationship management and a tailored, personalized strategy. It is about interactions with customers and creates greater customer loyalty. Although it may take some effort to do it, it generates better returns. Moreover, one loyal customer can lead more customers to follow. In the modern world, we get better opportunities to learn from people's experiences. For instance, there are more and more unboxing videos on YouTube, so customers can watch them before they actually make their decisions. 

The Steps Companies Need To Take To Engage in One-To-One Marketing with Their Customers

Identify The Targeting Customers

Obviously, you have to identify your customers first. If you don't who are they and how they make their purchasing decisions, you cannot win this marketing game for sure. Imagine it as a destination you are looking for, then you can think about how to get there. But if you don't know where you should go, you will get lost in the marking sea. Therefore, enterprises must be able to locate and contact at least a substantial portion of their customers. The goal of one-to-one marketing is to deliver a personalized experience. And generate customer loyalty. To do that, companies need to know their customers better enough.

Differentiating The Customers

Once you have identified your customers, the second step is to differentiate them. This step helps you to focus your efforts and put your limited resources into it to gain the most advantage with the most valuable customers. Differentiation will also help you decide on the appropriate strategy. Moreover, it also refers to how you differentiate yourself from your competition and how you differentiate yourself in your customer’s mind. And, enterprises have to find their profitable positions that bests allows them to serve the markets.

Interacting with Customers

Now, the challenge is to interact with the customers you have identified and differentiated. Simply speaking, our major purposes are improving both cost-efficiency and effectiveness. New social media have provided real-time interactions, but how to make customers love your business is the key to win. Some useful tips such as empathy, conscientiousness, transparency, and emotion are all you should think about. Remember, go where your customers are.

Customizing Enterprises' Behaviors

The final step is to customize your enterprises' behaviors. For instance, if you are interviewing for work in Tesla, what should you answer questions like "Tell me about yourself?" or "What's your interest?". Different individuals like different answers, so do enterprises. Therefore, companies must adopt some aspect of their behavior to meet that customer’s individually expressed needs. 

Conclusions

Identifying and differentiating customers, the first two steps, are largely analysis steps, whereas interacting with customers and customizing are action steps. If you can’t identify your individual customers, you definitely cannot differentiate them, much less adapting your behavior to address each one’s needs.

Reference

8, P. (2021, January 21). One to one marketing - what it is and why it's here to stay. Retrieved March 01, 2021, from https://www.zineone.com/one-to-one-marketing/

Is your company ready for one-to-one marketing? (2014, August 01). Retrieved March 01, 2021, from https://hbr.org/1999/01/is-your-company-ready-for-one-to-one-marketing

Tanner, J. & Raymond, M.A. (2015). Principles of Marketing. University of Minnesota Open Textbook Library. Licensed under a Creative Commons by-nc-sa.

Advertising and Integrated Marketing Communications

Introduction

Did you ever feel lost while your smartphone was not in your hand? Did you stare at your phone for over 10 hours per day? Communication Technology such as the Internet and cell phones helps businesses grow and creates relationships with their customers. Now, it is even changing the type of messaging strategy businesses use. Knowing how your customers get information and how companies can communicate with you about their products and services is one of the crucial parts of your business. 

In addition, once companies have successfully created a new product, they often try hard to promote its popularity. To do that, all different types of media such as traditional TV, radio, magazines, the Internet, and mobile apps are on the marking list. Therefore, they need a better option, and here are the integrated marketing communications come in. It provides an approach designed to deliver one consistent message to consumers and even span multiple types of media.

Messages Have Seen or Heard from Several Companies

I think a company’s consistent message can be a consistent or very similar design. For instance, South Korean multinational automotive manufacturer KIA put a Tiger Nose grille on its all series of cars. The message is pretty clear that if you see a Tiger Nose grille, it is very likely made by KIA. Not only does KIA use this approach, but you can also see BMW, Lamborghini, or Tesla apply a series of differentiated designs. Even more, 7-11 in Taiwan also apply the same voice while customers enter their stores. Although you are not in their store, you still remember it is the voice of 7-11. 

Are The Companies Being Consistent with Their Messages Across The Markets They Are Targeting?

As mentioned above, KIA and 7-11 in Taiwan are both consistent with their messages across the markets they are targeting. Kia's unconventional approach to design was the Tiger Nose grille and it has become the face of every Kia, which leaves such a lasting impression, has the Kia signature grille to thank for it.

What Factors Are Causing The Media Landscape To Change?

It is very obvious that changes in communication technology and instant access to information through mobile devices boost the importance of integrated marketing communications. Moreover, it also changed how we work, how we interact with other people, and how we use our time. For instance, due to the pandemic of COVID-19, more and more people shopping, doing exercises, and working online. As a result, businesses have realized they need to change their promotional strategies.

Advertisements on social media such as Facebook, Instagram, YouTube, and Twitter have become more and more popular since 2005 as businesses explore social media. For instance, Facebook announced an amazing function called, Facebook Business Manager that lets teams at enterprises and agencies manage multiple ad campaigns and Pages in one interface. Traditional media like magazines, newspapers, and TVs are hard to compete with new media now, mobile phones have unlocked the limited of tools and locations. They are movable promotions. 

As the media landscape changes, the money organizations spend on different types of communication will change as well. Some forecasts indicate that in the next five years companies will increase their ex- expenditure on new media from approximately 16 percent of their total promotional budgets to almost 27 percent of their budgets, or $160 billion by 2012. 

How Can You Maximize The Reach of The Promotional Mix on A Limited Budget and Get The Most Exposure for A Minimal Investment?

The Promotion Mix refers to the multiple promotional methods used by the business to increase the demand for goods and services. According to the Principles of Marketing written by Tanner, J. & Raymond, M.A. in 2015, The Promotion Mix is the integration of Advertising, Personal Selling, Sales Promotion, Public Relations, and Direct Marketing. 

Advertising is any paid form of non-personal promotion of goods and services by an identified sponsor. Personal Selling is the traditional to promote wherein the salesman interacts with the customer directly face-to-face. The sales promotion is the short-term incentive to increase sales for a specific period. The Public Relations is to build a favorable image in the market by creating relations with the general public. Direct Marketing means businesses reach customers directly without any intermediaries. For instance, sending emails and direct messages to the customers.

Companies can use any tool of the promotion mix depending on the nature of a product and the overall objectives. However, no matter which promotional methods we use, we all try to grab their attention and influence their purchase decision. But for many companies, the budget available to market a product determines what elements of the promotion mix are utilized. In short, the budget affects a promotion’s reach and frequency. I think if companies want to grab attention within their budgets available, they should targeting a specific group first. Then, put their resources on the most potential one. How do we know which one is the most potential one? Companies all want to know their customers' demands, so they should put some of their resources to do research and analysis. 

Reference

Says, A., Witharana, A., Says, E., Edson, Says, S., Rathnayaka, S., . . . Krikly. (2018, December 11). What is PROMOTION mix? Definition and meaning. Retrieved February 28, 2021, from https://businessjargons.com/promotion-mix.html

Tanner, J. & Raymond, M.A. (2015). Principles of Marketing. University of Minnesota Open Textbook Library. Licensed under a Creative Commons by-nc-sa.