Recent Trends in Microfinance

The term Microfinance is derived from the word microcredit which means “small credit” in simple terms. However, with the expansion of services from Microfinance Institutions (MFIs), different people, agencies, and institutions have defined Microfinance differently. Generally, microfinance is defined as the provision of financial and non-financial services from microfinance institutions to low-income households and small business who were excluded by commercial banks.

The term Microfinance now covers a wide range of product and services such as microloans, savings, insurance, and remittance. Some scholars believe that the first formal microcredit institution was “Grameen Bank”, which was established in 1976 in Bangladesh by Dr Muhammad Yunus, a Nobel peace prize winner in 2006.

The term Microfinance covers a wide range of product and services such as microloans and savings.

The institution was set up as a non-profit institution to provide small credit, especially to women in the rural part of Bangladesh because it was difficult for them to receive loans from commercial banks. Over time, Grameen Bank grew in popularity and customer base and more MFIs started to emerge following the Grameen Model.

What is the Grameen Model?

The Grameen Model was created by Grameen Bank of Bangladesh which has currently the widest replication in many developing countries across the world. In Grameen model Five unrelated, self-selected prospective borrowers are formed and required to make a savings deposit and payment on a loan at given period. The institution does not evaluate these loans as individual loans but as group loans and also leaves members to do most of the management and financial services.

First, two members of the group will receive the loan and then the group members determine the rotation of access to credit, and after timely repayments, an additional two members receive loans. If any member in a group fails to make an installment payment on time, then the borrower or group will be cut off from the future borrowing. However, if the borrower/group makes payment on time and in an orderly manner then bigger loans are granted in the future.

The Grameen model provides credit to the very poor in rural areas without requiring any collateral. The model also has low transaction costs and focuses on women. The Grameen Bank approach is currently being applied in many countries. A few of such countries are Bhutan, Bolivia, Burkina Faso, Chile, Guinea, India, Indonesia, Kenya, Malawi, Malaysia, Mali, Nepal, Nigeria, Pakistan, Peru, Philippines, Sri Lanka, Vietnam and Zambia Some developed countries like Canada, France, and the U.S., have also adopted a version where it is being used to help people become income generators.

Trends in Microfinance

Microfinance Institutions (MFIs) have had global influence and spread around the globe because microfinance has been regarded as one of the effective tools for fighting poverty. Initially, MFIs depended on donations, grants and government subsidies. However, in last decade, some microfinance institutions have realised that they might need to make a profit to provide continuous service, cover their administrative, financial and operational cost, and also budget for the future development without needing any government funds or donations.

In recent years, MFIs have been focusing slightly more on their financial side and as a result, the industry is moving towards profit-oriented MFI’s which means that these MFIs are applying market-based principles. This implies that we have had three stages of MFI’s since their conception which can be seen from the following figure.

Trends in Microfinance Institutions

Some of the first microfinance institutions to adopt the profit-orientated approach were Bank Rakayat Indonesia (BRI), K-Rep in Kenya, Mibanco in Peru, First Microfinance Bank (FMFB) in Pakistan, and CARD Rural Bank in the Philippines. Similarly, PRODEM, the leading Microfinance NGO in Bolivia, transformed into a financial bank called BancoSol.

In conclusion, although MFIs were established as non-profit institutions to provide social services, it seems that microfinance institutions are becoming more like profit-oriented institutions for various reasons.

Sanjib Sherpa (sanjib.sherpa@research.staffs.ac.uk) is currently undertaking his PhD study at Staffordshire University in the area of Microfinance under the supervision of Dr Tolu Olarewaju.

Business School Research News April 2018

Recent papers

Adnan Efendic and Geoff Pugh (2018). The effect of ethnic diversity on income – an empirical investigation using survey data from a post-conflict environment. Economics: The Open-Access, Open-Assessment E-Journal, 12(2018-17): 1-34. http://dx.doi.org/10.5018/economics-ejournal.ja.2018-17

This paper was picked up and promoted on twitter by Lars-Gunnar Wigemark (@LarsGWigemark ) who is the EU Ambassador to Bosnia and Herzegovina.

Vishwas MaheshwariPriya GuneshGeorge LodorfosAnastasia Konstantopoulou, (2017) “Exploring HR practitioners’ perspective on employer branding and its role in organisational attractiveness and talent management“, International Journal of Organizational Analysis, Vol. 25 Issue: 5, pp.742-761, https://doi.org/10.1108/IJOA-03-2017-1136

Vishwas Maheswari & Priya Gunesh (accepted for publication 2018 ) ‘Role of Organisational career websites for employer brand development’ in International Journal of  Organizational Analysis

Olarewaju, Tolulope (2017) Organising Household Consumption and Occupational Proportions: Evidence from Nigeria. International Journal of Organizational Analysis, 26 (4). ISSN 1934-8835

Almond K and Power J (2018) Breaking the tile in pattern cutting: An interdisciplinary approach. Journal of Art, Design and Communication in Higher Education, 17 (1) pp 33-50 ISSN 1474273X

Book chapters

Carol Southall has a chapter on Family Tourism in a new book – Special Interest Tourism: Concepts, Contexts and Cases (2018) eds Agarwal S, Busby G and Huang R.

https://www.cabi.org/bookshop/book/9781780645667

Carol Southall with the new book

Carol Southall with the new book

 

Jess Power has a chapter  Embedding interdisciplinary and challenge-led learning into the student experience. In: Experiential Learning for Entrepreneurship (2018) eds Hyams-SSekasi D & Caldwell E Palgrave, UK. https://www.palgrave.com/gb/book/9783319900049

Conference papers

Vicky Roberts will present her paper Understanding the role of Value Co-creation in Building New Luxury Brands: A Social Network Analysis Approach (Vicky Roberts, Stuart Roper & Sabrina Thornton). At the 13th Global Brand Conference 2-4th May Northumbria University

Angela Lawrence will present her paper Adopting Social Media For Stakeholder Engagement: A Case Of UK HEI at the Academy of Marketing Conference 2018 2nd to 5th July, University of Stirling

Tolu Olarewaju will present a paper Corruption, The Great Value Destroyer: The Role of Generalised Trust in Social Networks, Social Media Participation and Legal Institutional Quality for Corruption”. At the First Global Conference on Creating Value; at Leicester Castle Business School, De Montfort University from 23rd May, 2018 – 24th May, 2018. 

Carol Southall jointly delivered a paper with Dr Maren Viol (British University Vietnam) ‘Western-centrism in Internationalised HE Tourism Curricula: Perspectives from Vietnam’. at International Conference of Critical Tourism Studies – Asia Pacific. Held 3-6 March at University Gadjah Mada, Yogyakarta, Indonesia.

Upcoming events at the University

5th July Silver Workersover 50s conference at Staffordshire University – save the date more details to follow, please register on the link. Organised by Hazel Squire and Prof Jon Fairburn

https://www.eventbrite.co.uk/e/silver-workers-free-interactive-conference-registration-44791156555

International Erasmus Week 12-16th November

Wendy Pollard and Jon Fairburn are organising an international week on the themes Enterprise, Employability and Entrepreneurship. Please let your international partners know.

Full details and how to register on the link

http://staffmobility.eu/staffweek/erasmus-enterprise-employability-and

Funded by the ERASMUS + PROGRAMME

THE BIGGER PICTURE: BREXIT SPEECH VS DONALD TRUMP’S TARIFFS

On Friday, 2 March 2018, at the Mansion House in London, Theresa May delivered her most comprehensive Brexit speech to date. It was a speech designed to bridge the divide between Remain and Leave voters as she tried to explain Britain’s future relationship with the EU.

To international business economists like myself, this was a welcome speech, with very insightful details into how Britain was looking to trade with the EU and other countries after D-day a.k.a. “Transition Period“. The Prime Minister spoke about approaching a crucial moment in the negotiations and specified that existing models like the Norway model would not work because that would mean having to implement new EU legislation automatically and, in its entirety and would also mean continued free movement.

A Canada model would also not be suitable on World Trade Organisation terms because that would mean customs and regulatory checks at the border and damage the integrated supply chains of both EU and British firms – inconsistent with the commitments that both Britain and the EU have made in respect of Northern Ireland.

The most positive thing about the speech however was its tone. It was in many ways a call to partnership and not protectionist mantra. Mrs May is right in many aspects but in one key detail in particular.

 

When other countries seek to become part of the EU, they have to make their laws, regulations and standards align with those of the EU. In this case however, Britain is already aligned with the EU. What Britain wants is some leeway to be different in certain respects. When Britain leaves the EU, the Withdrawal Bill will bring EU law into UK law.

In the future, Parliament might choose to pass an identical law to EU law in some cases – when businesses who export to the EU indicate that it is in their interest to have a single set of regulatory standards that mean they can sell into the UK and EU markets. If Parliament on the other hand decides not to achieve the same outcomes as EU law, it would be in the knowledge that there may be consequences for British market access.

 

 

TRUMP’S PROTECTIONIST TARIFFS 

A few days after the British Prime Minister’s speech, the US President, Mr Trump signed an order for a 25% tariff on imports of steel and a 10% tariff on aluminium into the US, saying some exceptions will be made for Canada and Mexico, prompting fears of trade war. While the US steel industry is obviously happy about the plans, it seems everyone else is upset.

Recall that Mr Trump campaigned on saving US steel and aluminium jobs, which have been lost to cheap foreign imports. But these tariffs threaten to undermine decades of agreement in international trade and have split the Republican party. There was no congressional member of his own party present for the White House announcement.

The US President is planning tariffs on $60bn worth of Chinese goods, in part because of alleged Chinese theft of intellectual property – which means design and product ideas. The White House said it has a list of more than 1,000 products that could be targeted by the tariffs of 25%. Companies will get a chance to comment before they are put into effect. Mr Trump wants to cut the trade deficit with China – a country he has accused of unfair trade practices since before he become president.

Officials from China and Europe have threatened retaliation. Richard Warren, head of policy at UK Steel, said the US was a significant export market for British producers, accounting for around 15% of UK steel exports. “This really does throw a spanner in the works” he said. The European Union has indicated it could retaliate, potentially starting a trade war with the US.

 

 

European Commission President Jean-Claude Juncker said: “We will not sit idly while our industry is hit with unfair measures that put thousands of European jobs at risk.” “I had the occasion to say that the EU would react adequately and that’s what we will do.” “The EU will react firmly and commensurately to defend our interests. The Commission will bring forward in the next few days a proposal for WTO-compatible counter-measures against the US to re-balance the situation.”

It’s not just Europe and the UK that have voiced concern, Australia’s trade minister said it will distort global trade and cost jobs. He also highlighted the risk of retaliatory measures as Asian exporters sought more detail on the plans.

 

 

AN OVERVIEW

trade war is when countries try to attack each other’s trade with taxes and quotas. One country will raise tariffs, a type of tax, causing the other to respond, in a tit-for-tat escalation. This can hurt other nations’ economies and lead to rising political tensions between them. This is a form of protectionism. Protectionism is trying to use tariffs to boost your country’s industry and shield it from foreign competition.

trade war will be bad in this scenario, but Mr Donald Trump does have a point. China has been flouting international property rules and will have more to lose in a trade war. This flouting of international property rules has also resulted in a huge US trade deficit with China.

No party wants a trade war. Britain’s tone on Brexit is much softer and open to compromise. The US tone on trade seems to indicate a much tougher stance. Analysts might argue that this is because one side has more to lose than the other. Maybe what all sides need however is a more reconciliatory tone. Partnership will be better than conflict.

On Monday, 2nd of April 2018, China imposed tariffs of up to 25% on 128 US imports, including pork and wine, affecting some $3bn (£2.1bn) of imports. Beijing said the move was to safeguard China’s interests and balance losses caused by new US tariffs. The markets fell as a result, International Business Economists continue to monitor the situation.

Dr Tolu Olarewaju is a lecturer in Economics at Staffordshire University. For more information on International Business and Business Strategy courses at Staffordshire University, please visit www.staffs.ac.uk.

 

 

Using Digital to Build Your CV

If you’re anything like me, you would have read enough tips on CV building to write your own novel. But what do we really learn? How do we know that the document we’ve just spent four hours putting together is even going to get a second look from our dream company? We don’t. But if we do know what tools are available to build a great CV, maybe we’d one step closer to the dream.

Example of Canva Free Resume Template

Gone are the days that a CV format consists of a black and white document with Times New Roman font and maybe the odd line of bold. Employers want to get a glimpse of you from the first few seconds. So, my first tip, do not be afraid to be yourself and make the use of digital tools that are available.

Firstly, ask yourself which industry you are trying to enter, this is key to choosing the type of design for your CV as it has to be relevant. If you’re looking to build something a little more interesting that gives you the freedom to show some of your personality through colour and images, try Canva, a free online design tool. This has a range of templates with suggestions of content and layout, but also allows you to amend any settings to your personal taste.

On the other hand, you may be looking for a professional CV with a moving edge. Video CV’s are increasingly common particularly in the creative and also sporting sectors due to the nature of the roles. Software such as Windows Movie Maker, Apple iMovie or something more sophisticated like Adobe Premier Pro are great for editing your own footage.

Credit: powtoon.com

Finally, and this is exciting, how about creating your own animated video of a day in the life of you? Powtoon is a free online tool that allows you to create a cartoon character and tell a story of your education, experiences and skills through video. Powtoon is YouTube certified and has recently become partnered with HubSpot, meaning it’s great not only for personal development but for work related projects too. It is a simple to use, flexible tool that allows you to create approachable content and particularly for a CV, include a visualisation of a persons skills and knowledge.

A CV doesn’t have to be a chore, take the opportunity that digital has given us to explore creative ways to present yourself as a professional.

Author: Kathryn Taylor, MSc Digital Marketing Management Student

Digital Marketing Assessor at Total People Ltd

How YOUR Business Can Benefit From Machine Learning!

It is no secret that the landscape of marketing is changing, with a huge shift in activity from traditional methods to digital marketing methods. Machine Learning is at the absolute forefront of this change, and is tipped to be the key to successful business online.

What is Machine Learning?

Machine Learning (ML) is closely related to Artificial Intelligence (AI), a topic of discussion that is prevalent not only in marketing, but as a cultural issue. ML is the application of AI to systems, allowing them to learn from experience. This involves complex algorithm’s that allow a machine to use data to produce predicted outputs.

In marketing terms, this means that a program can gather relevant information, analyse it, and give a specific output, whether that is a prediction or action. This is an exciting prospect for businesses as it can lead to increased efficiency and decreased costs.

So, how can you, as an organisation, utilise machine learning?

Utilising Big Data – 

Digital is growing rapidly, and is fuelled by the amount of data available online, labelled as ‘Big Data’. IBM reported in 2013 that 90% of the world’s data had been produced in the last 2 years. Although this number may seem overwhelming, analysing it is HUGE business, with International Data Corporation predicting it to reach a value of $203 billion in 2020.

With this mass of data, analyst’s need the help of machines if they wish to be able to analyse it fully. Data Analytic programs allow this to an extent, but ML programs, such as Torch, have the ability to spot hidden correlations and patterns in this data, which can be used strategically.

Chat bots – 

Creating a dialogue with customers is crucial to businesses online, and one way to do this effectively is to use chat bots. Chat bots are becoming increasingly popular, and with good reason. Using a chat bot, a customer can open a dialogue to, for example, buy a coat. In this example, a customer would message the business through a messaging app such as Facebook Messenger, and the bot would then reply. The customer would then tell the bot what style/colour of coat it desires, and the bot would provide you with options matching your needs.

As a business, it allows you to communicate with huge numbers of customers on an individual basis, without the need for humans for each customer. This not only saves costs, but is a method that is increasingly preferred by customers, especially millennials. Although Chat bots are already beginning to revolutionise customer service, it is important to realise that the tool is still in its infancy, and so inevitably as technology advances, more and more opportunities concerning them will arise.

Image result for chat bot

Recruitment – 

Another way ML can improve your business activities involves recruitment. This is no more apparent than in ML tools used by companies like Zoho, such as Spark, which allows you to flip the equation in job searching – instead of candidates giving information and a list of vacancies being provided, Zoho uses information regarding the vacancy provided by the business, and supplies a list of candidates that best fit the role.

This can benefit your business because it ensures your prospective employees possess the traits you are seeking.

Oho landing page

Content Management –

With the swathe of content available to consumer’s, it is only natural that it becomes difficult for them to find the content they want to see. Businesses can address this problem through machine learning. By using a machine learning platform, businesses can use the data from previous content consumers have interacted with to predict other content that would be liked, and to ultimately produce content that resonates with their consumer’s. One such example of this is Pinterest. Pinterest use the previous images that their users have ‘pinned’ to suggest other images and content that users would like to see.

Image result for pinterest

This is Just the Start!

The benefits listed above should make it clear that ML has immense potential for business and marketing. It is now being used by giant companies, such as Google and Amazon, but there is no reason smaller companies could use it with just as much benefit. As the technology behind this area grows, organisations will be able to interact with and influence consumers like never before. Make sure you aren’t left behind.

Does your business use machine learning? How does it benefit you? What other benefits are available to businesses through this platform? Please share your opinion below.


by Rory Tarplee

LinkedIn

MSc Digital Marketing Student (Full Time)

 

8 Trends To Keep Your Eyes On In 2018

1. Instagram Stories Drive Upcoming Instagram Trends

Instagram Stories is a big deal and they’re not going away. Daily viewers of Instagram Stories surpassed daily SnapChat viewers just one year after launch, and the growth isn’t stopping.

Instagram Stories was likely the biggest single change in the Instagram UX, and its marketing implications are huge.

A huge deal with Instagram Stories is this: accounts with over 10,000 followers can now add a link within the feature. Considering the fact that the only other place you can put a link on Instagram is just the one buried on your profile page, this is a huge deal, as it multiplies buying or inquiry opportunities by orders of magnitude.

Instagram Stories in particular will be relevant from a marketing perspective because, compared to other transitory video platforms, Instagram metrics are eminently trackable.

A final note on Instagram Stories: Their foundation is social media engagement gold. Video drastically outperforms all other forms of content on every test.

2. Influencer Marketing Makes Major Contributions to Social Media Engagement

Influencer marketing is big business — a billion dollar industry by some counts. There is an exhaustive list of micro-celebrities who earn six figure incomes. And this isn’t a fluke. Influencer marketing is uniquely keyed to exploit certain facts about a growing number of buyers.
As Millennials advance their careers, and Generation Z starts theirs, an enormous population’s purchasing power is increasing swiftly. These two groups — who, combined, literally comprise most of the world’s population — are uniquely influenced by this marketing method.

3. Generation Z to Decide Social Media Trends

We’ve mentioned Generation Z in both of the previous topics for good reason.

RetailDive had this to say about Generation Z and their associated social media trends:

“Gen Z is two- to three times more likely to be influenced by social media than by sales or discounts — the only generation to value social media over price when it comes to making purchase decisions…”

Furthermore, 81% report watching at least one hour of online video per day, or more, according to a study by Fluent, covered by AdWeek. Combine these facts and realize that droves of Generation Z will graduate college and/or start careers next year, and you start to see the powder keg.

4. Messaging Platforms Make Companies Accessible

 

What do you know about WeChat? They’re a wee little Chinese messaging company . . . errr, one that’s looking to cross 1 billion users this quarter. WeChat and WhatsApp are absolutely ubiquitous across either ocean, reaching across many different functions to dominate social media, direct messaging, and even purchasing and commerce.

Every year more and more buyers are Millennials and Gen Z, and fewer and fewer are older. In case you’re not aware of these people’s overwhelming preferences when it comes to talking to a company, we’ll illustrate in their native language:

top-social-media-trends-20185. Live Streaming Explodes

Live streaming isn’t about live streaming. At least not in the way we’re going to be talking about it. You’re going to see a lot more of it in 2018, and the people who do it well will be fully with the times and accelerating. Its prevalence will increase because it works.

But there’s something more at work here.

It’s actually about technology. We get better phones every year. Does that mean that we’re running the same apps better? Sometimes. But once the technological baseline of the average user has clearly moved up a notch, it becomes about making more robust apps that do more and fully take advantage of that new technology.

The smartphones of today are better than what we used to have by orders of magnitude. Furthermore, our data speeds are better, and are poised to make yet another insane leap in the next few years when 5G becomes the standard.

Live streaming is a medium or implementation of social technology that’s uniquely positioned to take advantage of hardware improvements for the next several years. The resolution of an image the size of a phone screen can only get so good before you have to zoom in to see a difference.

But better video processing across the board means all devices involved can handle more streaming at a better quality across more channels at the same time. This is such a huge change that it’s possibly unclear that anyone is even capable of fully understanding the ramifications.

6. Twitter is Going to Change

And they themselves might not even know how just yet.

Twitter has been slowly circling the drain, in some respects, for a long time now. 2017 pulled no punches with the social network, either. Twitter needs to make some big changes to stay relevant, as its growth is the slowest of all the major social media platforms.

7. Online Hangouts Become the Norm

Online hangouts go hand-in-hand with the live streaming trend, and with Generation Z. Consider Houseparty — an app for multiple friends to essentially FaceTime with each other in a group setting.

Houseparty made quite a wave in 2017 with rapid growth, and hit its stride well enough to inspire copycats, including perhaps an effort on the way coming from (no surprise here) Facebook.

The online hangouts trend is also going to intersect with VR. Sure, everyone promised everything this year with VR and AR, and all that ultimately came of it was two weeks of Pokemon GO.

But this year actually has the potential to be different. Many promising programs have another year of beta testing still left under their belts, but the technologies are improving in exciting ways. Once again, Facebook is at the epicentre, with Facebook Spaces.

8. Social Platforms See More Hardcore Moderation

The last year or so has forced the hand of several tech and social media titans to intervene and play a more active role in content moderation. Those manoeuvres, in retrospect, felt more like damage control than any sort of final solution.

We’re likely going to see companies revisit this in a more significant or longer-lasting way, and definitely more proactive than reactive.

As leveraging social media outlets for marketing first took flight, some were dubious of their staying power. The years since have changed sceptic’s into believers, and what’s on the forefront will clearly and easily amplify the channels’ relevance even further.

2018 is here… but were you prepared?

2018 social media trends predict that time on social media platforms will increase. This means you will need to improve your online presence in the year to come.

 

By Richard Holland – MSc Digital Marketing Student

 

Contact –

Linkedin- Richard Holland

Instagram – Ricardo J

Brand –

Instagram – Ricco London

Twitter – Ricco London

Facebook – Ricco London

New opportunities for workers over 50

Blog by Marzena Reszka

People in the UK are living longer than ever before – a major achievement of modern science and healthcare. Older people make up a growing proportion of the population, and so make an increasing contribution to society.

However, the UK is not making the most of the opportunities afforded by an ageing population. Too many people are forced out of work in later life by poor health or unwelcoming attitudes in the workplace. Too few people access the training they need to adapt to a changing labour market. Too many families face the choice between working and providing care for a loved one. Too few homes meet the needs of older people.

At Staffordshire University we have a project to support over 50s who want some enterprise and skills training. This will help develop both the confidence, mind-set and skills in this area. It is worth remembering that people in their 40s and 50s are the most likely to start up a business.

Smiling

As the population ages, so will the UK workforce. The productivity and economic success of the UK is increasingly tied to that of older workers. Thus, learning and training  becomes of even greater importance as the population ages.

The proportion of the working age population aged between 50 and the state pension age (SPA) will increase to 35% in 2050 – an increase of approximately 8 million people. Encouraging older people to remain in work will help society to support growing numbers of dependents, while providing individuals with the financial and mental resources needed for longer periods of retirement.

Population ageing and increased life expectancy changed traditional thinking about learning. Longer working lives and other changes to the labour market means workers need to be more adaptable than they were before. More broadly, evidence shows that life-long participation in learning can improve people’s health, cognition, wellbeing and resilience. The need to reduce the level of dependency in society means that learning, and any other tool for extending the period of time that people can live independently, is increasingly important.

We therefore, need employers support a multigenerational workforce maximising the opportunities for older workers, and secondly we need to support older workers to take a new direction or for those unemployed return to working. This is where self-employment can offer a more flexible form of working, that may allow older people to stay in work for longer.

Moreover, the age profile of self-employed people they tend to be older than employees are, with 43% of those recorded as self-employed are over the aged 50 compared to 27%, which are employees. Age UK says that older workers are more likely to have a higher chance of success with over 70 per cent of these businesses lasting over five years compared to only 28 per cent set up by younger entrepreneurs.

Here is a few questions to ask yourself:

Do you have a hobby or interest in an area you could turn into a business? Do you want a better work-life balance? Are you unemployed, facing redundancy or looking for a change? Are you wondering how to set up a community interest company?

The training will look at how to come up with a business idea in the first place. It will explore if it could be viable. In addition, once you know what you want to do we then guide you through the process of how to set it up. We can help you to identify who your customers will be and how to promote your product to them.

The project is funded by the EU and includes partners from trade unions in Italy, and business organisations in Spain, Belgium and Portugal all working together to deliver a good training package and to help boost life-long learning and economic recovery.

The training is free and if you are interested please contact  Hazel Squire h.squire@staffs.ac.uk  01782 294985 or Jon Fairburn jon.fairburn@staffs.ac.uk 01782 294094 at Staffordshire University.

Silver Workers "Use your expertise" logo

Funded by the Erasmus+ Programme of the European Union and EU flag logo

 

How Influencer Marketing Could Benefit Your Business

Influencer marketing focuses on using key leaders to drive your brand’s message to the market. Rather than marketing directly to this large group, you instead hire or pay these influencers to inspire and get the word out for you.

According to McKinsey, Influencer Marketing generates double the sales of paid advertising, as well as three times the amount of “word of mouth” messages. Furthermore, it results in recommendations – where people are up to fifty times more likely to purchase.

Influencer marketing could benefit your business in a number of ways, and you should consider using it because:

  • It’s more authentic than an advert.
  • It’s more cost effective than many other marketing channels.
  • It provides shareable content, which could amplify results exponentially.
  • You can effectively target a new audience.
  • It’s a way to create real-time engagement.
  • It’s an easy way to build trust with your customers and future customers.

Two cases come to mind where Influencer marketing benefited the business and the influencer, such as Youtube star PewDiePie teaming up with the makers of horror film ‘As Above, So Below’ – creating a number of videos in which he completed challenges and tasks set in the catacombs in which the film was set. This resonated with his then 27 Million subscribers, and received nearly double the views that the trailer for the film did.

The other, according to Neoreach, is American retail giant Walmart teaming up with former Vine star Meghan McCarthy. Meghan posted on Snapchat, Instagram, Twitter and Youtube, putting her stamp of approval on the promotion that she was promoting. Her posts gathered hundreds of follow up posts and tweets, an impact that no television ad campaign could make.

The Big Influencers for 2018

According to Forbes, some of the top influencers of 2017 are going to be even bigger in 2018. 

If the budget is there, then these are the kind of people that you want influencing customers to buy into your product or brand.

These include gaming maestro Markiplier, Keynote speaker and entrepreneur Gary Vaynerchuk, cooking whiz Rosanna Pansino, six-year-old Ryan ToysReview and powerful lady Lilly Singh.

Whilst all of these people have the majority of their following on YouTube, they are also influencers on the likes of Instagram and Facebook and could cost a hefty sum.

Some of these people may be out of your price range, but if you can find a local influencer to promote your product, then that may be worthwhile to your business.

.

Regan Foy (Twitter / LinkedIn)

Staffordshire University Students’ Union

MSc Digital Marketing Management Student (Full Time)

E-mail marketing or Messenger marketing?

What Email Marketers are saying

When it comes to email marketing software, marketers are spoilt for choice. But how do they feel about the emails they send?

It turns out that relevance is a huge concern for them. DMA reports that 42% of marketers say only some of the emails they send are relevant, and a whopping 10% say their emails aren’t relevant at all. That’s an issue, with consumers trashing irrelevant email.

Another issue people wonder about is the ROI of email marketing. In other words, is it really worth it? Various comparison’s of email marketing vs social media shows that email outperforms social by miles. And Chief Marketer says the ROI of email marketing is 28.5% better than for direct mail.

So what does Messenger do better?

Well, the big problem with email marketing is that you’re talking at your users and potential customers, not with them.

It’s kind of like being on the receiving end of a sales pitch, one where you have no say until the salesman is finished leaving you with only one response, yes or no.

Messenger though, creates a conversation.

It’s the only channel that solicits real time feedback from your users, the only channel where they have a say and shape the conversation which builds interest and engagement.

Check out the below example from 1800-flowers.

What Does the Future Hold?

Email is a mature channel, one which has been extensively developed and includes various advanced features to help you better market to your customers.

Messenger on the other hand is the new kid on the block.

It’s showing great promise and is getting far higher engagement in the areas where they’re going head to head, but it’s not yet at the level of sophistication email has developed.

Messenger is quickly gaining ground on email in terms of features and is already outpacing the platform in the areas where there’s overlap.

So what should a smart store owner like you do?

Well, what you shouldn’t do is abandon email marketing in favour of Messenger. Right now Messenger simply doesn’t have the advanced functionality and tracking of email.

However, if you already haven’t you should be looking at implementing Messenger on your site ASAP.

Right now, Messenger is the perfect complement to your email marketing. And if the last year is any indication, in the near future Messenger will continue to outperform email in other key marketing and communication areas for ecommerce as the platform progresses.

Right now, if I had to advise some specific campaigns your store needs to be running I’d recommend focusing on:

Messenger isn’t just a nice thing to have on your store or a new fad that will die out. The success rate of stores across the globe and the growing user base points to a new channel that might one day overtake email as the chief ROI channel.

In conclusion:

Email marketing and social media are like parallel universes that communicate with each other.

We suggest using email marketing when you’re looking more for reach, traffic and direct conversions. Social media, on the other hand, is a great tool that can help you engage your audience and assist you with making more sales.

There is no reason why you shouldn’t use both. Just be sure to allocate your resources the right way. Thank you for reading this blog and please leave your comments below.

 

By Richard Holland – MSc Digital Marketing Student

 

Contact –

Linkedin- Richard Holland

Instagram – Ricardo J

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Instagram – Ricco London

Twitter – Ricco London

Facebook – Ricco London

If You’re Marketing to Millennials, Get on Instagram

There were over 600 million Instagrammers in 2017, and 400 million of those users were active every day according to Softpedia.

Those numbers alone should be reason enough to get your business on the social media platform – but if you’re marketing to Millennials, otherwise referred to as Generation Y, or in simple terms anyone born between the early 1980s and late 1990s – then you should already be on there.

In March of 2017, over 120 million Instagram users visited a website, found directions or contacted an Instagram account or business based on an Instagram ad says Wordstream.

Not only this, but according to the Instagram Blog over 50% of users on the app follow a business and 60% say they learn about a product or service through the app.

Why not make one of those businesses yours? We’ve produced the definitive guide to getting your business set up on Instagram below.

Getting Started

The first thing you’ve got to do is establish your presence on the platform with three main tasks, adding a profile picture, writing a bio and connecting your website. For an example of doing this the correct way, take a look at fashion retailer JD’s Instagram Feed.

Your profile picture should be something memorable and representative of your business – usually your logo.

Over time, people remember your profile picture when scanning through their Instagram news feed – especially if your logo is eye catching.

Your bio gives you under 200 characters to tell the world why you’re worth following and what your service or product is. Enhancing your bio by encouraging users to share content relevant to your business or brand using a hashtag can always be worthwhile.

It’s also important that your followers follow the path to purchase or learn as much as possible – and your website is generally the avenue where this takes place.

Ensuring your website URL on Instagram directs to a mobile friendly site is incredibly important.

How can I Market Effectively?

 Once your profile has been created, you’ve got to identify what kind of content your target audience will be interested in.

Brand storytelling, or Brand Centered Content whether through photos of products or photos of the results of products effectively showcases what the business or brand has to offer.

Skate and footwear brand Vans do this quite well.

Reactive Storytelling uses timely events or unique insights to generate immediate feedback from their audience – and these tend to be based upon pop culture or memes.

This usually includes an interesting story that is on consumer’s minds, combined with a brand relevant marketing message.

With Behind the Scenes content, people are looking for an inside look at how things are built or done inside your business and brand.

Brands are now looking at how they can be more authentic as it is what consumers are looking for in the modern market.

Overclockers UK are a wonderful, British example of this.

Inspirational or Motivational posts are used to spark emotions in your customers or target audience – and it is also the most effective way to drive engagement with your brand.

The key is to recognise what will resonate with your audience.

From this point onward, you should have a basic idea of how to use Instagram as a powerful marketing tool for your Millennial target audience.

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Regan Foy (Twitter / LinkedIn)

Staffordshire University Students’ Union

MSc Digital Marketing Managament Student (Full Time)