Challenges in the Era of Globalization - iaabd

Challenges in the Era of Globalization
Edited by Emmanuel Obuah
Physical evidence
The intangible nature of a service means that potential customers are unable to judge a service before it is
consumed therefore increasing the perceived riskiness inherent in a purchase decision. An important
element of marketing planning is to reduce this level of perceived risk by offering tangible evidence of
the nature of service Palmer (2008). In the case of venture capital, successful portfolio companies that
have been financed can be used as referral to new customers.
Processes
Production processes are of critical concern to consumers of services where consumers are a co-producer
of the service. With services, a clear distinction cannot be made between marketing and operations
management, service design should therefore pay attention to processes and manner in which service
personnel interact with customers during this process Palmer (2008).
The seven elements of an extended marketing mix are arguably not appropriate for a great diversity of
services but organizations can adapt relevant elements to its particular marketing environment.
Customer attraction strategies and the marketing mix
Traditionally, marketing has focused attention on how to attract new customers - a process described as
customer acquisition. However, it is becoming increasingly important that existing customers be retained
and it is as a matter of fact, as important as attracting new ones. The marketing elements (product, price,
place, promotion, people, physical evidence and product) as discussed above, are used for acquisition and
retention, and are similar in many instances but their application may vary from one service to the other,
and from one organization to another, and from industry to industry.
Identifying Venture Capital Investors
According to Timmons and Spinelli, (2003) if you are searching for a venture capital investor, Pratt’s
Guide to Venture Capital Sources is a good guide to check and in the case of South Africa, the Southern
African Venture and Private Equity Capital Association’s website will be useful.
Since venture capitalists firms receive thousands of propositions every year they mostly pay attention to
business plans that comes from a “warm referral” therefore it is important to find a “warm” referral to
each venture capital firm. They could be from accountants, lawyers, investments and commercial bankers,
business school professors and business network who are knowledgeable about professional investors
Timmons et.al. (2004).
Research design and Methodology
The research design is exploratory, and it involves an extensive literature study using a qualitative
approach. Secondary data sources include the collection of past articles on venture capital, and, financial
services marketing published in international journals like the journal of Marketing, journal of Small
Business Management, Journal of Business Venturing. The articles were supplemented by textbooks on
financial services marketing, as well as annual report of KPMG and SAVCA.
Exploratory research design was chosen by the researchers due to the broad nature of the study with the
intention of identifying areas of further descriptive and or conclusive research in future Churchill and
Brown, (2004).
Conclusion and Implication
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