Friday, May 11, 2012
Reward systems Marketing
Entrepreneurial orientation has positive influence on customer orientation and competitor orientation, market-based reward system has positive influence on customer orientation and competitor orientation, customer orientation positively to marketing performance, while competitors do not have a positive orientation towards marketing performance. (Soederiman 2011)
The following is an example of reward systems marketing used by Schmidt and Ralph; “Slater's 50/50 is a burger restaurant located in Anaheim, CA is currently running a promotion in Facebook. They want to increase their "like" count in Facebook. Facebook users often refer to the "like" count as a recommendation for or against a company. As a restaurant, a high "like" count would indicate a great option for an individual that is looking for a new place to eat or a place to eat in a town they are visiting. To increase their like count they have started a promotion stating that the Friend that gives them their 1000th like will receive a "SURPRISE". The promotion sends out a message updating the count in an attempt to get more people to "like".” (Schmidt and Ralph 2011) The surprise would be the market-based reward system.
Networking is not new to the business world. Networking has been able to create a new medium within social media. Social networks, blogs, micro blogs such as Twitter and really simple syndication (RSS feeds) all have had a deep impact on how promotion of the organization can be utilized. These tools require different approaches in order to be effective, efficient and successful.(Schmidt and Ralph 2011)
Schmidt, S. M. P. and D. L. Ralph (2011). "Social Media: More Available Marketing Tools." The Business Review, Cambridge 18(2): 37-43.
Soederiman, J. (2011). "Effect of entrepreneurship orientation and marketing-based reward system towards marketing performance." International Journal of Business and Social Science 2(6): 7.
When we speak of groups that do the organizing..." (Shirky 2008) Shirky spoke of following a $300 telephone to the new found owner. Did the transaction of obtaining the phone decrease or increase? It is apparent that the data involved was much more valuable than the phone itself. Therefore, did the transaction cost of regaining said lost phone exceed "We use the word 'organization' to mean both the state of being organized and the its original cost? Perhaps not, as we weigh into the matter that the data was far more valuable than the hardware itself.
What is the tangible effect on transaction cost if we weigh into the matter such items as operational efficiency and employee engagement? (Jue, Marr et al. 2010) If we utilize an internal social media presence, such as Oracle did, we can understand without reservation the connection to success that our employees believe are needed. In itself, these connections may not be met via a personal interview, but left alone to its own creation; the employee appears to become more engaged in its effort to provide success to the relationship.
As Kelly stated, communication is not just a sector of the economy, communication IS the economy. (Kelly 1998) So given the phenomenal success of Amazon and eBay as an example, do their simple suggestions of what “others like you” have purchased weigh into the strategy of permissible marketing? Obviously they do as their continued success of marketing in this low cost forum will endure many profits into the future and far beyond.
Jue, A. L., J. A. Marr, et al. (2010). Social media at work: How networking tools propel organizational performance. San Fransico, Jossey-Bass.
Kelly, K. (1998). New rules for the new economy: 10 radical strategies for a connected world. New York, The Penguin Group.