” Optimization helps businesses reduce costs and increase revenues. Optimization also benefits the market by reducing deadweight and inefficiencies. Optimization can increase the efficiency of a system, process or model by finding ways to perform the same task with fewer steps”
According to Timi Olubiyi of the Babcock University School of Business, the typical business news on the tube is predictable nowadays. The business news has generally gone south. Olubiyi says high inflation as well as economic uncertainty, have had significant impacts on businesses, manufacturers, and households, including individual lifestyles and well-being in recent times.
The direct consequences of these impacts continue to have serious implications. Globally, no country is immune to inflation. Around the world inflationary pressure has been experienced in the USA, the UK, and many other developed and developing nations. But in Nigeria, the peculiarity is that inflation has been getting higher steadily for the last two years. According to the National Bureau of Statistics (NBS), Nigeria is one of the countries where inflation has grown the fastest presently at 32.70% average customers and manufacturers have been severely hit by its consequences, and it has been a concern for many businesses.
The troubling trend is that most of the basic necessities are increasingly getting out of reach for the majority of people indicating that the country’s cost of living has risen at an alarming rate. Many marketing companies have gone the way of sachets and the impact has not been so encouraging marketers are now looking the way of product and service optimization as a feasible strategy.
Optimization in brand management
It is basically finding an alternative with the most cost-effective or highest achievable performance under the given constraints, by maximizing desired factors and minimizing undesired ones. In comparison, maximization means trying to attain the highest or maximum result or outcome without regard to cost or expense. Practice of optimization is restricted by the lack of full information, and the lack of time to evaluate what information is available.
Product and service optimization can significantly help challenged brands improve their marketing effectiveness in several ways:
1. Enhanced Customer Experience: By refining products and services, brands can meet customer needs more effectively, leading to increased satisfaction, goodwill and loyalty. Happy customers are more likely to recommend the brand, boosting word-of-mouth marketing to potential customers who may be interested in the product or service on offer.
2. Competitive Advantage: Optimizing offerings allows brands to differentiate themselves from competitors. Unique features or superior service can make a brand more affordable and attractive, giving it a clear edge in a crowded marketplace.
3. Cost Efficiency: Streamlining production or service delivery can reduce costs, allowing brands to invest more in marketing initiatives, especially advertising and marketing research or to offer competitive pricing, attracting budget-conscious consumers in an inflation-ravaged economy like Nigeria.
4. Targeted Marketing: By analyzing customer feedback and usage data, brands can identify specific areas for optimization. This information can guide targeted marketing strategies, focusing efforts on the most valuable customer segments in the marketplace
5. Innovation and Relevance: Continuous optimization can lead to innovation, keeping the brand relevant in changing markets. Brands that adapt quickly to trends or emerging customer preferences are more likely to capture attention and market share.
6. Increased Credibility: Brands that consistently optimize their offerings demonstrate commitment to quality and customer satisfaction. This builds credibility and trust, which are crucial for successful marketing. For example, an innovation and optimization strategy developed by a high-technology business might entail the use of new management or production procedures and the invention of technology not previously used by players in the system. Talking of product quality one must highlight the group of features and characteristics of a saleable good which determine its desirability and which can be controlled by a manufacturer to meet certain basic requirements. Most businesses that produce goods for sale must have a product quality or assurance department that monitors outgoing products for consumer acceptability further to any form of refinement that may have taken place.
7. Data-Driven Decisions: Optimization often involves collecting and analyzing data, which can inform more effective marketing strategies. Brands can adjust their messaging and channels based on what resonates with their audience.
8. Sustainable Practices: Brands that optimize for sustainability can appeal to environmentally conscious consumers. This not only improves brand image but can also open up new market opportunities. This is very important, especially in an economy like Nigeria that is bedevilled by weak Institutional systems and structures.
In essence, product and service optimization enables brands to create more effective products and marketing strategies that resonate with customers, drive engagement, and ultimately lead to improved business performance.
Michael A. Umogun is a business development director, The Insight Place Lagos
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
