Bt's Share In The Market 4 3 example essay topic

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1.0 Executive Summary The proposals that we are going to depose are a planning of continuous action in order to confront the challenges, which BT confronts. The most important factor is considered to be the fact that the marketing environment changed rapidly after the deregulation of the telephone industry. Up to then BT was operating as a monopoly, ignoring the competition and ways to face it. Our intention is to achieve the already given targets and also prepare BT for an opening to new horizons.

In addition, in order to face the fast changing environment we have to introduce within the companies activities like cross selling and e-marketing. A new era is at about to start, where BT will become one of the leaders within the global telecommunications industry starting from its dominance in the UK. 2.0 Preface of our Potential Marketing Plan Strategy Marketing is considered to be the most visible functional activity of profit-seeking organisations. However, for the appliance of a new Marketing Strategy, many changes have to be done as far as it concerns the complete infrastructure of an organisation, as well as the corporation al beliefs and values. Our suggested strategy emphasizes on our effort to launch BT as a potential! yen active member! | in the economical and social life of the country, in contradiction to the characterization of the past as a! yen public enemy! | from the press. Our planning is based on an analysis of the customer's future requirements, as well as the current needs in comparison to the past.

Major role at this planning plays the succession process from one time sector to the other. The philosophy of our strategic business plans is to bridge the gaps between past, present and future, having as a result a limitation of available time to our competitors to attack to our market share while we remain idle. Our proposals include a! yen bouquet! | of changes, improvements and alternative solutions (segmentation planning, direct marketing campaigns), targeting in the creation of a competitive advantage through Relationship Marketing and flexible Marketing Strategy with the wide use of Direct Marketing techniques, in order to attribute to the loyalty strategy of BT and also create some barriers which will protect the BT's market share and leading positions building! yen iron walls! |. This tactic aims not only to secure the existing customers, but also to attract a respected percentage of customers who were disappointed and finally abandoned BT for another attractive competitor. The code name we gave to our project is! yenLow Bap! |: the sound of boots of an army when is marching in the battlefield.

With this name we compare the business corporations of the present with the huge armies of the past. In this way, we could consider BT as a big army of the past, which has to be kept in a continuous march so as to meet our targets both in short and long-term. Regarding the number of the consumers that are involved and the size of funds, which are going to be used, BT's strategy will be an example that may have both a positive or negative effect to the Global business field in the future. It is up to us to build BT's fame as an innovative strategic planner or another bureaucratic plodding giant. 3.0 Situation Analysis.

Before giving our proposals and suggestions, we are going to highlight the key aspects we observed when we were analyzing the current situation. These can be mentioned as the most important factors that determine our strategy and their presentation will help you to comprehend the status quo as we estimated it from our own experience. 3.1 Market Summary. The market in which we are going to be activated is defined from the borders of the UK. However, Britain is considered to be one of the most developed countries in the world, so it is really difficult to study examples of other companies and other countries in similar situations.

Moreover, as an undoubted market leader, BT has, in most cases, to introduce an innovation, in order to familiaris e the customers with it. This means that BT will pay higher cost than the market followers, who will find the market ready for their entrance. In such cases, most of the times, the pioneer proves to be less competitive than the followers. The British telephone industry changes fast according to the way telephone services are offered. In our days, were cross selling is in growth and it is a commodity the companies to be involved in various activities, in order to secure their profitability, it is expected that even more companies will try to enter the market by offering alternative services, coming especially from the sector of new technology.

It is thought that! yen the best defence is the attack! |. As certainly opportunities will be given in the sectors of mobile phones and Internet services, BT will meet the challenge to enter. The participation of the UK in European Union may lead to further evolution in the sector of telecommunications within the Community. Moreover, it is expected that in the near future alternative technologies will transform the way telecommunication services were offered till now. For instance the future coming of Web phone may cause a complete change to the market.

3.2 SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the company and describes the opportunities and threats BT faces. 3.2. 1 Strengths The following are accepted as the main strong points of BT's structure:" X Access to respected amounts of capital, which will fund the new strategy". X Cash flow that is continuous and predicted enough to support a long-term project". X Coverage of the complete market, existing distribution network that covers the complete geographical altitude of the market". X A brand name, which is easily recognised and familiar to the consumers". X A historical background, which, with the appropriate promotion will be gain back the lost shine of the company to the eyes of the consumers".

X Clear picture of the problem". X Experience on the local telephone industry more than any current competitor. 3.2. 2 Weaknesses"X The structure of the company, which was initially made to offer pure telephone services now it is vital to combine it with other services, which are more demanding. "X A prohibition, as far as it concerns the quality of service and respect to the customer against BT from a major share of the consumers! | society, which includes the most profitable segments of the market. 3.2. 3 Opportunities major task that may be considered as an opportunity is the chance to enter into new markets, something that will support the current activities.

These new fields may include opportunities for high profits and may also lead to a glide consecution of the product-oriented profile of BT from telephone industry to telecommunications. 3.2. 4 Threats "X Continuous price pressure will reduce BT's profits, something that will have as a result poor profit per share and decline of the share price". X Strong competition will lead to the parental corporations of the cable companies as well as the new entrants which will squeeze the share of BT". X A dramatic change in the telecommunication industry with BT to confront difficulties to participate in the evolution due to lack of knowledge as far as it concerns New Technologies. "X Reengineering of the operational structure, which may lead to the conflict of the relationship between employers and employees, affecting their performance and the success of their project. 3.3 Competitive Status via Five Forces Analysis Within the telephone industry (except from the implications of relative markets), BT does not confront strong competition.

Therefore, the considerations and reactions of a part of the management maybe considered as limited, due to the lack of stimuli. However new entrants and substitutes are now encompassing the nature of telecommunications industry from what was known in the past. The governmental and political factors that influence the BT have to do with the antitrust and monopolization regulations and try to enforce healthy competition and protect the interest of the consumers. Though we do not expect more pressure concerning the opening of telephone services, as it is already considered as a free market, we may confront difficulties if we try to launch combined services 3 in 1 like: wire phones, mobile phones and internet. As an example, we could mention Microsoft vs. Netscape case. BT's labour force is consisted of employees, who work for the company (in most of cases) for many years.

It is expected that the work force must be experienced, but also well paid, according to the years within the company. However, the high cost of wages is a disadvantage for the company and the skilled workers have the ability to shift to a job (maybe to a competitor) if they receive a more attractive offer. Suppliers of equipment have now the option to deal with more than one client within UK market. But BT always remains the client with the bulk of turnover, which has the strength to demand better prices and benefits. Selling points and intermediaries, have now the option to choose from a variety of telecommunications products. They observe their position to become more powerful, as they can enhance more than one brand and they have the opportunity to negotiate with telecommunications providers asking for privileges.

Five Forces Analysis of BT Figure 1. Five forces analysis (Porter E., 1980) Substitute products are a threat to BT as they enter the market, carrying a lot of advantages. Some of them are expected to affect the market in long term, for instance Internet phone. Last but not least, the consumers are now in powerful position, as they can test and compare products and finally demand more. In addition, they are receivers of multiple advertising and promotion campaigns, a fact that makes them suspicious to any kind of ad or direct marketing approach from any company.

Moreover, the pricing issue is nebulous, so there is a conflict to their mind. Our Direct & Relationship strategy targets in building barriers to new entries and enforcing the position of the company, by using the most modern and suitable methods of DM to establish the loyalty and devotion to BT, as the unique national telephone provider with extensions to other profitable sectors. 3.4 Product Offering BT's product offering is focused on telephony in national level. Our differentiation policy must emphasise on the fact that BT was the first telephone provider and still has the greatest experience and is willing to offer qualified services to the Age of Electronic Time in multiple sectors. Services and products offered by BT must give the customer the sense of security, as well as the confidence that they worth their price per value. As basic elements in product offering we have to consider:" X Access to the local, national and international telephone network".

X Supply of telecommunications equipment". X Telephone Services of information and entertainment, access to data". X Tele-marketing". X Mobile phones".

X Internet"X Intranets, Digital Information Networks"X Ability to scan and enhance new products and services Our marketing strategy is going to help in the development of all the above activities, including the preparation for the opening to new horizons. 3.5 Keys to Success As keys to success, we admit the following parameters:" X Transformation of the inertia that keeps the customers to pure loyalty. "X Differentiation of the services, enhancing new technologies and innovative services, which will reinforce the position of BT in the market". X Long-term relationship with the consumers, which will allow cross selling and prospects for expansion in other profitable sectors". X Continuous monitoring of the evolution in telecommunications industry scanning for opportunities and threats. 3.6 Critical Issues BT is still in declining stage as a telephone provider.

Moreover, there is a negative background, which is necessary to be reversed before we introduce any new services and offers. Therefore, the use and the results of the Direct & Relationship Marketing Plan are essential for the success of the entire Business Plan and Strategic Design of BT. 3.7 MacroenvironmentMajor macro environmental trends and issues, which impact the performance of BT, are as follows: "X As key factor we estimate the National Economic Health of British economy. It is expected BT to do better when UK faces growth in economy. "X The evolution in New Technologies sector is vital for the future plans of BT. "X Shifts in consumers! | habits and cultural background.

4.0 Presentation and Analysis of our Direct & Relationship Plan for Action Our Direct & Relationship Marketing Plan is going to give a complete set of short-term as well as long-term proposals of BT. The core of our DM planning is the creation of a reputation and fame that will enforce the differentiation strategy, which targets to enforced the scheme of loyalty. The target of our strategy is to create confidence and a sense of superiority to BT's customers regarding the services they receive from their telephone provider. Furthermore, social responsibility and concern for the interests of our customers will add extra value to the BT's profile in the consumers! | eyes. 4.1 Mission As BT's mission is recognised the complete coverage of UK with telephone services, in national level. As the first and historical provider of Great Britain, BT has the duty to serve the citizens with the best services.

The mission of our Direct Marketing Plan is to bring and keep in touch the customers within UK with BT, establishing a strong relationship both in strengthening their loyalty and keeping them using BT services. 4.2 Marketing & Financial Objectives The main marketing targets as they are set ted by Mick Harbour, Head of Consumer Market Defence are as follows: a. To stop 1 of 2 customers who are going to join cable companies. b. The return of 100,000 customers from Mercury to BTc.

To choke up the goal of cable to half, meaning that BT will continue to control the 90% of the market. Our proposals with the code name! yenLow Bap! | covers all the aims above and includes the additional target of creation of DM network, able to cover cross-selling activities and expansion to new horizons. 4.3 Our Direct Marketing Plan presented for BT in details Our primary DM campaign will have as! yen flagship! | the establishment of a museum dedicated to telephony. This museum will mainly describe the history of telephony highlighting slightly the importance of British Telecom and the inheritance of BT. A massive advertisement campaign will follow via TV, radio, newspapers and magazines. This campaign will inform customers for first time for the Historical Museum of Telecommunications, which will be financed and supported by BT.

The next step is the target clients to receive through Direct Mail an application form. By completing this form they will receive an invitation for free entrance to our Museum. Using this application form we will gather fresh information from our customers. Therefore it is essential to make them respond. We can increase the percentage of people reply by including a lottery or a competition. This approach has to be in a really friendly way, in order to build a strong relationship between customers and BT.

In order to meet these expectations, BT has to re engineer a part of the Customer Care Department to a pure Direct & Relationship Marketing Department. The role of this department will be to operate as a Revenue Assurance Dept. Regarding the Outbound and Inbound contact with customers, we would like to present an aggressive tactic on behalf of the Customer Care Human Resources. It is of vital importance for the success of our project to upgrade phone sets and launch vouchers in such a way, so as to be considered from the consumers as! yen suretyship! | on behalf of BT and not another bonus of to logic that! yenI pay a lot I deserve a lot! |, which is something that is expressed by the consumers when they receive bonuses (in most of cases).

Due to the fact that we accept the appliance of Parretto Rule to our target market, we have to reconsider the introduction of a Club, which will include the most profitable segments of the market. Due to the nature of our potential customers and the differences, which are presented to each group, we have to split our Club to subcategories. These subcategories will operate as independent Clubs, which will be devoted to the target group of customers. 4.3. 1. Brief Picture of our DM & Relationship Plan To the following picture is briefly described the structure of our proposals in order to present a complete view of our project.

An analysis of each sector will follow to the next chapters. Our project has multiple objectives and targets. It is a common belief that in advertisements the best way of advertising is by! yen word of mouth! |. We are seeking to find ways to build a profile of! yen social responsibility! | and respect to the customer, who will turn our existing customers to BT's! yen ambassadors! |.

We will also have to defend against the aggressive policy of cable companies, in order to stop their expansion process and also limit it in a smaller degree. Moreover, we have to gain back the customers who preferred the services of Mercury and they may are satisfied from the services they receive now. Our proposals put BT in a continuous process in order to achieve the already given targets as well as the challenges of the future. Block diagram of our Planniby BT. We consider the establishment of the Museum as a fundamental issue in the history of BT.

We expect and going to use it as an accelerator to our strategy. The Museum is going to give back the recognition that BT deserves. It will be a powerful tool to the hands of marketers, who can use it with almost all of their tactics. We are confident that this investment will make the difference and will have benefits for the company in local-national level as well as in international level. This is going to give prestige and fame, which will help BT's activities, worldwide. Completing the procedure of the introduction and establishment of the British Historical Museum of Telecommunications, we expect it to be a showplace that will attract visitors from all around the world.

Finishing their sightseeing, British and international visitors will feel respect and admiration of BT's achievements, giving us more possibilities to transform them in potential clients. The entrance to the museum will be free for the public and for schools and students! | groups. The presence of the Museum will be a significant theme for the BT's advertisement campaigns and an important issue in the Direct Mail approach. 4.3. 3.

The advertisement campaign. Our advertising campaign will run in parallel action with our DM plan. The main objectives of our advertisement are the following:" X Promotion of the historical background, experience, knowledge and position in the market". X Diaphaneity to the pricing policy". X Invitation to come in touch with BT services. For the purposes of BT's advertisement campaign, we expect to use the majority of the means of media: TV, radio, newspapers and magazines will! yen help! | us in our campaign.

This is a great opportunity for our PR department to take advantage of the big amounts of money, which are going to be spent in media, in order to press all types of media for articles, references and positive comments regarding BT. A small team of PR executives with experience may take the responsibility to complete this vital mission for BT's profile 4.3. 4. The Direct Marketing Department and its Tactics. The main activities and sections of our Direct Marketing Department are as follows"X R & D regarding offers, vouchers, upgrade services". X Newsletters"X Inbound Collection & Telemarketing"X Outbound Collection & Telemarketing"X Fraud Dept".

X One-to-one Marketing"X Personnel dedicated to the service of Club members For the well operation of BT, it is expected that the above sectors will work in interconnection. The increasing competitive environment where BT is activated, steps up the expectations from the DM department. Its role in the New Age is demanding and it is expected to become even sterner. The main new issues, which are going to be introduced and handled from the DM & Relationship Dept., are the following:" X The case of the British Historical Museum of Telecommunications: The success of the introduction and the efficiency of the whole project are depended on the way DM dept. will handle and launch these matters".

X The collection and process of data is a critical matter, in our case we are referring to enormous quantities of data that concern the whole population of Britain. It is necessary for all the departments to have access to the data in which they are interested. The key factor is the allocation of the data according to the usefulness to each department". X The upgrade of the position of DM & Relationship Dept to a more active and essential role. New service like Fraud Dept. is going to be introduced"X The establishment of a Club, which targets to the 20% of the most profitable segment of the market.

"X The use of tactics like: Upgrade of phone sets and vouchers". X Continuous contact through a newsletter. "X Use of e-marketing techniques like: Introduction of competitive services via the official website of BT. like e-advertisements, e-cards. A key factor in order to confront the expansion of cable companies is the fact that they enter to predetermined geographical areas. Monitoring the whole procedure of their expansion plans will help us to focus on our DM strategy to the geographical territories, which are going to be affected. Knowing where the competition will make its appearance and having enough time due to nature of the cable services (planning application, digging etc) we have the ability to focus our DM campaign in order to protect our share in the market.

Moreover, the size of sector, which is going to confront the pressure, is rather small each time, so we would suggest One-to-One Marketing in addition to the intense use of all the available DM techniques focused to specific geographical territories each time. Database system will be used to set the borders of the target market. 4.3. 4.1. Telemarketing & Fraud Dept. In order to achieve the new targets of the company, it is necessary to have an expansion of the current Inbound & Outbound department. The new era demands from the Customer Care Department to follow aggressive policy in order to secure the position of the company in the market. Telemarketing will give the final battle in order to gain customer's trust.

We consider that this will be the final stage and the department will collect the! yen crop! |. As telephone provider, BT has the ability to use its network with the lowest cost. Free phone lines and telemarketing campaigns will have less cost for BT than to any other company. An innovation could be the Fraud Dept, which is going to play the role of the consultant to customers, in order to protect them from trickery situations. The mission of this department will be to advise the consumers of how they will avoid to become victims of trickery.

The existence of this department must be highly promoted through our advertising campaign. We consider this as an important issue and we expect positive reaction and vastly acceptance from the public, if it is presented in the appropriate way. From this part of the project we expect to enforce our loyalty and relationship scheme. We are going to start a wide range advertising campaign, so as to launch this service to the market and to achieve our targets. In our campaign we intend to use the media including TV, radio, newspapers and magazines.

Though, emphasis will be given to a DM approach that is going to include: direct mails, inbound & outbound telemarketing as well as e-mails and information available to the first page of the official site of BT. Once more, we expect that the performance of DM plan will judge the results. 4.3. 4.2 Database: The Introduction of a Digital Nervous System In most business organisations, people need to see information in a variety of ways. Senior executives often want to see consolidated view of sales, then a view by region, then by country. Sales managers want to see numbers by team and individual sales or by customer accounts. Product managers want to see numbers by sales channel or to drill down to see what SKUs (Stock-Keeping Units) are selling well or poorly.

Different people need to see month and year-to-date sales, actual sales vs. budget, year-over-year changes in sales. Typically, a company's finance department produces a very large number of separate reports to meet these various business needs. The situation in our Direct Marketing Dept is similar; various types of information are requested for different purposes. Our database system must be transformed to a digital nervous system that will correspond to every reaction of our marketing units, as well as in all the other business units. Beyond the internal marketing research sources, we are going to examine the possibility for association with external marketing researches after inviting marketing research agencies to pitch proposals, which are going to be evaluated from BT's managing team with our consultancy service. The key issue regarding databases of the next generation is the ability to allow to the users to compose the format of information they wish to receive, in order to use it for several purposes.

Moreover, we estimate database as an asset that gives to the company extra value and opens new horizons for expansion in cross-selling activities. 4.3. 4.3 Segmentation: The Challenge of a Wide Club's structure. The purpose of the establishment of a digital nervous system is to support the core activities of the company. The identification of the most profitable issues of the company is a vital issue. Lifestyle data is one of the basic criteria, which help us to categorize the costumers to groups. In order to approach closer to the most profitable segment of the market we are planning the operation of a Club, which will be consisted of independent units.

These independent units will treat the particularities of each group excluding offerings and the customer care service which will be common for all the groups. Club members will be recognised automatically from the Customer Care Dept. and they will have priority, this will have as a result the reception of better services. As different groups we consider the already given groups of families with teenage children, businessmen working at home, international callers, multi-adult households and! yen chatters! |. The differences between the groups will determine the contrast between the different approaches that we will use applying DM techniques. Finally, the objective of Club is to operate as a! yen shield! | protecting BT's share in the market. 4.3.

4.4 Direct Mail, One-One to Marketing and Offerings Our DM plan includes extended use of Direct Mail. We will try to come in contact with the already existing clients as well as the clients who have joined competitors. A first subject with which direct mail will deal with is the issue of pricing. Our policy is to clarify the nebulous environment of pricing and cost within telephone industry. Direct mail will give the necessary clarifications and information to the consumers, trying to gain their trust and faith in such matters. Moreover, it will invite them to contact with BT for more details using a toll free line.

Customers care service comes again into play, as they will have to treat the calls back. It would be possible the outbound collection department to participate by following a telemarketing campaign in order to introduce customers to the! yen fair world! | of BT. Due to the big size of the market and the time consuming procedure we will come back to this option only if we observe low response rates to our direct mail approach or we have to treat a situation to local level in order to confront the expansion of cable companies. Due to the nature of the way they act (planning application for a particular area to the local council, road digging) we can easily monitoring their expansion plans. Moreover, there is the necessary time to prepare our DM strategy in order to limit the defect of our customers protecting our share. One-to-One Marketing is the ideal solution in order to enforce our presence in the market share, which is going to meet the challenge to use an alternative telephone provider.

We estimate that now is the time for BT to enter in cross-selling activities. There are many potential associates for BT. A lot of companies would like to add BT to their portfolio and in many cases there are prospects for a prosperous cooperation for both parties. We are going to introduce two main tools to the hands of DM.

Upgrade of the phone sets and vouchers, all of them offered mainly by the Club. BT is possible to associate with a telecommunications equipment manufacturer like Siemens or Nokia, in order to supply its subscribers with equipment. According to the turnover, customers will be categorized and they will receive benefits. The same will happen with vouchers from several companies for a variety of services. We are planning these activities to operate as weapons to the hands of DM in addition to the reputation and prestige, which is built by the Museum theme. In parallel action with the advertisement, direct mail will undertake to bring in contact the customers with the Museum idea, to launch BT's new services and offerings. 4.3.

4.5 E-marketing BT has to meet the challenges of New Age. We have to attract the new generation of consumers, which are extremely familiaris ed with the use of Internet in their every day life. We are going to approach them by offering free e-cards and e-advertising in main portals. Free e-cards will be combined with e-mails and e-advertisements. This is to avoid the treatment of our e-mails as junk mails. The contact with the next generation is a key issue for the BT's future. 4.3.

4.6 The Born of a Flexible Newsletter and its destination We work on the design of a Newsletter, which is going to be distributed as an insert during the introductory stage in a variety of magazines and newspapers. Our policy is to launch this newsletter to the consumers as the! yen ultimate source for information regarding telecommunication industry! |. Our purpose is to achieve the recognition of this newsletter from the public in order to launch its independent distribution through BT's sale points in approximately 2 years time. Testing procedure will show the exact time we are going to release it to our point sales, stopping the insert tactic. We set our target to 500 thousands of consumers to visit BT's point sales, in order to supply their free issue.

The above plan is one more method, which we are going to apply in order to enforce our loyalty scheme. Furthermore, we are going to motivate consumers to visit BT's stores, giving us the opportunity to keep them in touch. 5.0 Financial Implications Beyond the strategic planning regarding the share of the market, vital for the success of the project and the prosperity of the company is the acceptance of the strategy by the shareholders and the major stakeholders. In real terms, the ultimate target of our planning procedure is to achieve high performance in financial rates. For our proposals there is not a specific cost, ! yenLow Bap! |is a flexible plan or! yen a bouquet of proposals! |, which may speed up or slow down according to the evolution in local and global economy. However, ultimate target of each corporation is the price per share and profit per share as well as the future of the corporation, which is in interconnection with the values we have already mentioned.

Regarding the funding size of the project and in which degree we will implement it, we strongly recommend an association with one of the following investment banking houses: Me rill Lynch, Salomon Smith Barney, Morgan Stanley or Goldman Sachs. In harmonization with the situation in economy we have to adjust to our budgeting policy. For instance, during a wide range recession in economy we have to reduce the cost of our project or during an expanding boom in new technologies industries we have to increase it. Therefore, the assistance of a financial consultant is essential.

However, Low Bap is designed for a continuous march, no matter the status of the economy. 6.0 Controls To control the procedure of Direct Marketing we propose an independent unit of marketers, coming mainly from the sector of Direct Marketing. It is important to act as an independent unit, in order to examine the tactics and strategies from another point of view. For a company like BT, it is obvious that multiple strategies may run together.

Moreover, the dominant presence of a working group may create a culture of how difficult situations can be treated. They will have a multiple role within the company, which is concentrated to the following sectors:" X Testing the tactics which are going to be applied. "X To benchmark the efficiency of the current Direct Marketing Projects. They will present rates of performance, which will be useful for the rulers of the DM strategy to evaluate their work.

"X They will have the ability to produce proposals, in order to improve the current strategies, according to their experience "X In order to collect feedback from the customers, they will have the chance to enhance an approach, which will work in additional with the primary loyalty policy of the company. It is a common belief that consumers feel that they are respected when they are asked for the quality of the services they receive. 7.0

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