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Business Economics: Mrs. Celia Bense
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Economie d’entreprise : Corporate economy
Groupe 2 : jeudi 13-15h, avec Mme Celia B...
Business Economics: Mrs. Celia Bense
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Context :
1) Introduction.
2) New innovative technological products and services Ma...
Business Economics: Mrs. Celia Bense
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1) Introduction:
Since the beginning of the humanity there have been technological ...
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  1. 1. Business Economics: Mrs. Celia Bense 1 Economie d’entreprise : Corporate economy Groupe 2 : jeudi 13-15h, avec Mme Celia Bense GOOGLE Par :  ASHTEWY Mohamed  Rami Safia  Louchiche Celia
  2. 2. Business Economics: Mrs. Celia Bense 2 Context : 1) Introduction. 2) New innovative technological products and services Market. 3) Google, the entry of an ambitious competitive player in the market. 4) Google, a big public organization (Building; its type, and its corporate governance). 5) Google’s corporate structure and organization (Organizing). 6) Google’s management, plans and goals (Managing). 7) Google’s conduct of internal / external ethics and social responsibility. 8) Conclusion. 9) Human resources 10) Understanding marketing principles and consumer behavior. 11) Producing 12) Branding and Promoting 13) Distributing
  3. 3. Business Economics: Mrs. Celia Bense 3 1) Introduction: Since the beginning of the humanity there have been technological revolutions. We can find those in every era of the humanity history. It has taken place in all countries; there must be a new invention or a more efficient & creative way for fulfilling people’s need in a particular place and time, such as: the knife invention or the discovering of fire. These solutions which facilitated human being life are supposed to be called new technology. In the 1980s, a new technological revolution has begun to change our daily life by introducing the PC to the public. This technological digital revolution in telecommunications and in information has been accelerated at the end of the 20th century to produce us the information age. Nowadays, there is no profession can be done without using any digital inputs. Every work chain is computerized in order to increase the organization’s efficiency. Recently, new trends have been emerged in the market as a consequence of the broad regular use of computerized and digital devices, such as: the data management and the big data. The information sector has been developed rapidly due to the huge amount of existing data on the servers and the increasing need of the market to collect and analyze them to be able achieve the organization’s goals. The information age of 2000s has happened due to a major technological change agent which is Google. Google has its proper factors of production, like: idea, knowledge, and resources, to succeed creating a need in the market and in broadening it by developing its new services and products that are connected to each other by collecting and organizing the data to facilitate users usage in this new information age. 2) New innovative technological products and services Market: The first World Wide Web was web 1.0 which was consisting of static pages and the users were only content-consumers, the only one web browser was Mosaic that was adaptable on all operating systems. At the end of the 20th century, a lot of digital companies were created and gained a lot of profits and strong reputation due to their value added services and their unique competitive advantage. The market was still thirsty for those kinds of businesses that probably encouraged the people investing on the dotcom companies and speculating on their shares. The dot-com bubble consequently happened owing to speculations and over investing on those fresh companies. So a lot of start-ups couldn’t resist this crisis, either they were acquired or declared their bankruptcy such as Mosaic. Google was preparing itself for the next data technology age. On the other side, there were earlier search-based companies: Archie, Veronica, Gopher, Wanderer and WebCrawler and other companies, such as: eBay, Amazon, Yahoo, hotmail, etc., survived from the dot-com bubble and they were gaining more turnovers and having more clients while Google was still being in Menlo Park garage as a start-up company searching for investment. 3) The entry of an ambitious competitive player in the market: First brick to build a powerful innovative business organization in the information technology market was in 1998. In 1995, Larry Page and Serge Brin met in the Stanford University. They were working on a PHD research project involving the mathematical properties of the link structure on the internet. The research project, “BackRub”, used an algorithm to follow the
  4. 4. Business Economics: Mrs. Celia Bense 4 links in a webpage and analyze all the connections. The PageRank algorithm generated a popularity index for each web page based on the quantity and quality of incoming links. In 1997, Google is registered as a domain. By 1998 Google’s web had indexed 60 million URLs, Sergey and Page decided then to found Google Inc. for a main purpose which is to make it easier to find high-quality information on the web. So, Google based on 3-years university research project in web search and data mining. “Google”, they have chosen this name because its origin from the word ‘googol’, a mathematical term for the number represented by the numeral 1 followed by 100 zeros. The first tactic they used to imply their Google’s start up strategy is the creation of Google Friends Newsletter and doodle; which was their first interface between the users and a service. In 1998-1999, , they received the first investment of 100,000 dollars from sun co-founder to an entity that doesn’t yet exist, which helped them to incorporate their company. They setup their workspace on a rented garage in Menlo Park, California. Google files for incorporation in California. Then they hired Google first employees and directors. In the end of 1999, they moved to their new official head quarter location in Mountain View in the north of Silicon Valley. Google’s business model depends on determining what the searcher is looking for and delivering an easy way for people to be separated from their money and in determining which Web sites were most relevant to a search query. Google has a way of linking the results of queries to relevant advertisements. And with a paid search ad industry that brings in more than $23 billion in revenue. Google now provides free net- search services in more than 120 languages, with a large number of web-based products in its portfolio and generates about 97 percent of its revenue through online advertisements (Google Ad words and Ad sense). Google provides now more services and products in order to have competitive advantage, such as: Google search, Google Earth, Google Chrome, Android, YouTube, Gmail, and Google plus, Google Nexus (the manufacturing is associated with other phones companies; LG, Motorola), Google Play, Google Drive, Google glass. The Google brand is valued at USD 100 billion, making it the world’s first ‘one-hundred billion brand.’ In 2009, Fortune magazine ranked it as the best place to work in the U.S., which is indeed a tribute to the company’s leadership and people-management practices. 4) Google, a big public organization (Building; its type, and its corporate governance): Before its IPO in 2004, what did Google look like? In 2004, AdSense placements are almost certainly the reason why Google has seen network- derived ad revenue rise so sharply. It also shows Google becoming increasingly tied to what happens beyond the borders of its own web sites to earn money. Many in senior management and key employees are fully vested. In short, they could cash out and depart Google at any time. Google notes system failures can be a concern and reveals in November 2003, it failed to provide web results for 20 percent of its traffic for 30 minutes. Most of these employees are involved in sales and marketing, but a healthy chunk focus on research and development. Employee classification, as of March 31, 2004:
  5. 5. Business Economics: Mrs. Celia Bense 5 It is astonishing that Google CEO Eric Schmidt earned a salary of $250,000 and earned a bonus of $301,556 while Google's two cofounders each earned a salary of $150,000 and earned bonuses of $206,556. - Google went to be a public company under the name: Google Inc. on 2004, when its initial public offering took place to finance its futuristic projects and plans. Google’s IPO of 19,605,052 shares of Class A common stock takes place on Wall Street. Opening price: $85 per share. Now its share price is approximately 571 dollars. The cofounders serge and page hold 56.7% of voting shares. As long as they remain friends, they can do whatever they want with the company, and they cannot be fired. The cofounders hold the majority of voting stocks because they want to be free to make very long term investments in projects that they expect to yield results way into the future and they have put rules for protecting themselves from any expulsion from their company. Like any corporation, Google has guidelines and regulations inside the organization to be able to control employees’ professional behavior and decisions that may affect the corporation’s performance. The Corporate Governance Guidelines are established by the Board of Directors of Google Inc.: (according to Google’s official website) 1- To provide a structure within which their directors and management can effectively pursue Google’s objectives for the benefit of its stockholders. 2- To serve as a flexible framework. These guidelines should comply with all applicable laws, Google’s charter documents and other governing legal documents and company policies. A- The board of directors: - The board size composed of at least 5 members. It is determined usually by resolution of the board. - Board membership criteria The Nominating and Corporate Governance Committee evaluates candidates for membership on the Board, including candidates nominated or recommended by stockholders, in the context of criteria established by the Board, and recommends to the Board the select of nominees for election at the Annual Meeting of Stockholders or nominees for election to fill interim vacancies on the Board.
  6. 6. Business Economics: Mrs. Celia Bense 6 - There are also members of the board serve as directors in the company. - The director tenure is determined by the nominating and corporate governance committee (according to the director contribution into wellbeing of Google and its stockholders and it monitors the directors’ performance). The directors’ elections take place every year. - Board committees consist of; an Audit Committee, a Leadership Development and Compensation Committee, a Nominating and Corporate Governance Committee, an Acquisition Committee and an Executive Committee. From time to time the Board may form a new committee or disband a current committee depending on the circumstances. Each committee complies with the independence and other requirements established by applicable law and regulations, including SEC and NASDAQ rules. Members of all standing committees are appointed by the Board. - B- The board duties: 1) to oversee management and evaluate strategy ( the directors have the responsibility to exercise wisely their business acts, reactions to the eventual risks and the business environment, put the most suitable strategy and plans to Google and to make the most effective decisions). It oversees management and evaluate strategy to identify any risk to Google’s financial performance, operations, infrastructure, plans, prospects, acquisitions and divestitures. - 2) to select the chairman of the board and chief executive officer in compliance with Google’s certificate of incorporation and bylaws. - 3) the leadership development and compensation committee at least annually evaluate the performance of the CEO and the other officers and also review & approve the compensation plans, policies and arrangements for executive officers and other officers (CEO compensation determined by all the members). - 4) The leadership development and compensation committee review and recommend management succession planning to the board for the development, retention and replacement of executive officers. - 5) All members of the Board must inform the Audit Committee of the Board of all types of transactions between them (directly or indirectly) and Google as soon as reasonably practicable even if these transactions are in the ordinary course of business (potential conflicts of interest). The Audit Committee of the Board will review and approve all related party transactions for which audit committee approval is required by applicable law or the rules of the NASDAQ Stock Market. The Board will also ensure that there is no abuse of corporate assets or unlawful related party transactions. - 6) The Audit Committee of the Board evaluates the integrity of Google’s accounting and financial reporting systems, including the audit of Google’s annual financial statements by the independent auditors, and that appropriate disclosure controls and procedures and systems of internal control are in place. The Audit Committee reports to the Board on a regular basis and the Board, upon the recommendation of the Audit Committee, takes the actions that are necessary to ensure the integrity of Google’s accounting and financial reporting systems and that such controls are in place. - 7) The Nominating and Corporate Governance Committee of the Board will annually review and evaluate the effectiveness of the governance practices under which the Board operates and make changes to these practices as needed.
  7. 7. Business Economics: Mrs. Celia Bense 7 - The frequency of board meetings are at least 4 regularly scheduled board meetings. - The attendance at these meetings can be done in person, via telephone conference, or via video conference. - The board members could not have more than 5 public company board memberships. For the CEO cannot have membership in more than 3 public company board memberships. - Members of the Board will have access to Google’s management and employees as needed to fulfill their duties. - The Board and each committee of the Board will have the authority to obtain advice, reports or opinions from internal and external counsel and expert advisers and will have the power to hire, at the expense of Google, legal, financial and other advisers as they may deem necessary or appropriate, without consulting with, or obtaining approval from, management of Google in advance. - Each director and senior corporate officer will be required to meet the following minimum stock ownership requirements: (i) each director shall own shares of Google stock equal in value to at least $750,000 (Seven Hundred and Fifty Thousand Dollars); (ii) our Founders, Chief Executive Officer, and our Executive Chairman shall own shares of Google stock equal in value to at least $14,000,000 (Fourteen Million Dollars); and (iii) our Senior Vice Presidents shall own shares of Google stock equal in value to at least $4,000,000 (Four Million Dollars). Google provides an orientation program for new directors that include written materials, oral presentations, and meetings with senior members of management. The orientation program is designed to familiarize new directors with Google’s business and strategy. The Board encourages directors to participate in accredited director education programs. The Board will reimburse directors for expenses incurred in connection with these education programs.
  8. 8. Business Economics: Mrs. Celia Bense 8 5) Google’s corporate structure and organization (Organizing): Google’s organizational structure: it has cross-functional organizational structure, and it maintains it through perfect leadership and innovative management techniques. It has a non-traditional cross- sectional structure. Google’s executives encourage always coordination between all the managerial levels in communicating directly between the managers and the employees, instead of communicating through more formal channels. The executives work closely with employees and with other departments, which is the cross-functional management; the open communication policy. It gives to everyone the impression that he is the company’s manager and contributes directly to its objectives. Google corporation’s consultants observed that after the IPO of Google, its management style and unique work environment that depends on team operations as in a start-up was going to diminishing and it would be like the other normal bureaucratic and linear controls corporations. So, the triple of Google (Page, Schmidt, and Brin) decided to retain its work environment which induce the guidance and the creativity rather than the severe linear control, and a bureaucratic traditional corporation. They hired a chief cultural officer to maintain their characteristic start up atmosphere among all the organization levels, and chief internet Evangelist and a distinguished entrepreneur on stuff to help identify and enable new technologies. These managers ensure Google’s stays innovative. The corporation is overseen by a board of directors which gives the instructions down through an executive management group. This group oversees several departments; finance, products, engineering, legal, and sales. Each of these departments is divided into smaller units. For instance, the sales department is divided into smaller units dedicated to the Americas, Asia Pacific, and Europe, Middle East, & Africa. Its cross- functional organizational structure is established according to Google’s functions and activities. If one of those functions are located in several geographical areas, It will be subdivided into geographical functions. There is always inter-functional communication channel to facilitate information acquisition and its open democratic communication policy to eliminate the noise that could happen during the message transfer via several managerial
  9. 9. Business Economics: Mrs. Celia Bense 9 levels and the time wasting. Google depends more on open cross functional teams for all organizational levels but it is more concentrated in the low level of the organization. Indeed, the manager is the responsible and is the one who assigns and receives reports from his subordinates. Managers don’t put goals for their employees, but they delegate/give them the authorization t to put for themselves their goals that they should reach in a particular time. Their supervisors and managers work as inspirational leaders and empower their employees / subordinates. Sometimes the employees themselves set the benchmarks. The management team prompts the creativity, the innovation and the responsibility among its employees. Google leaders want their employees to “think out loud”. This communication policy is something that most big corporations tend to lack. With quicker communication, productivity within the company is drastically improved. In addition to that, this structure promotes corporate transparency. Google has created other organizational type facilitating and improving intra-organization communication and creativity, which is the 70-20-10 rule. The rule affirms that the employees have the freedom to spend 70 percent of their time on current assignments, 20 percent on related projects of their choice (related to their core projects), & 10 percent on new projects that they desire. Some of these ideas translated into projects would become new products. Both Gmail and Ad Sense, the company’s ad software for publishers, started out as 20% time projects. This rule authorizes Google’s employees to take risks. 6) Google’s management, plans and goals (Managing): Larry and Serge hired a professional and experienced manager/CEO Eric Schmidt in order to gain experience and knowledge from him in terms of corporation management. Either corporation or even a small company could succeed and achieve its goals without making its strategy and its periodical plans; that are supposed to improve the company’s performance, without precising its vision and its goal, without imposing work culture that should be suitable to its environment, without having efficient performance control schema/system and without preparing itself to any potential threat or crisis. Google’s main managerial principles are equality, empowerment, involvement, informality, and democracy not bureaucracy. Google’s values are: focus on the user and all else will follow, it’s best to do one thing really well, fast is better than slow, democracy on the web works, you don’t need to be at your desk to need an answer, you can make money without doing evil, there’s always more information out there, the need for information crosses all borders, you can be serious without a suit, and great just isn’t good enough. Google’s mission statement: Organize world’s information and make it universally accessible and useful by helping the users to be better and by less complicating the life.” It organizes the world’s information through cloud computing, makes the information accessible via its services either online or offline, a wide range of Google services are now accessible offline, such as: Google drives. According to “Google’s about page” on the company's website, the mission has different branches. The company focuses on do-it-yourself ads with Google AdSense. Google focuses on speedy search and message threading in its email service called Gmail. Google's line of Android phones offer its users free access to Google Maps and provide navigation and communication. Google is also branching into other fields as well, such as the famous Google cars that operate on their own. This is part of Google’s vision for a future where cars drive themselves and people can participate in more productive activities during their commutes.
  10. 10. Business Economics: Mrs. Celia Bense 10 The site Google+ is part of Google’s vision for social media that is integrated into phones and every other part of life. The Google Chrome web browser is part of the company's vision of a more open market for web browser add-ons. The innovative company has even begun a new venture called Calico that is focused on creating a healthier future for all of humanity. Google’s tradition is to focus on long-term projects, thus its co-founders are not waiting the immediate yielding from their investment, they inversely want to put money on a project and yields further its profits. Google’s long term goal (according to its CEO Eric Schmidt): is 1) to give the user one exactly right answer to a query. Its strategy to achieve this long term goal is by guiding the user to a well definitive site that responds/corresponds to his/her search which is summarized and answered the user’s question by Google team. Along with the citation, of course. (Direct article-type answer with citations). 2) Is to have the world’s top artificial intelligence research laboratory (according to internal company document). 3) Google wants to have an improved infrastructure to make their engineers more productive. 4) Google wants to be the best in search. 5) Google wants to improve their ad system. 6) It wants to enhance its communities and content.6) increase the scale of innovation. 7) the accessibility of its tools everywhere. 8) to hire the best at every level and keep them. Google's short-term objectives are to expand the workforce for anticipated growth, expand further into international markets, Expanding the workforce will help achieve the long-term objective. Google has its style of setting goals for cross functional teams, a witness from MR Wael Ghonim on Google way to setting objectives: OKRs are Objectives and Key Results. I submitted my Q1 OKRs with what I thought were aggressive yet achievable goals. Not good enough. My manager explained that we needed to set stretch goals that seemed impossible to fully achieve. …I said “This is just a 90 day window and we can predict with reasonable accuracy what is achievable. Why set unrealistic goals?” Because you can’t achieve amazing results by setting modest targets. We want amazing results. We want to tackle the impossible. According to him, failure in Google is not an option; they promote the trials, they use Thomas Edison approach “I haven’t failed, I’ve just found lots of approaches that don’t work, and I am closer to the solution”. The scoring target is between 60-70%. Adsense is a result of a failed more ambitious project to understand the web. Most companies have a long, detailed planning cycle in pursuit of quarterly goals. That often makes them very predictable. Google does just the opposite. It has a short, unpredictable planning cycle in pursuit of very long-term objectives. The SWOT analysis of Google’s environment is: Google’s Strengths: market Leader in Search Engines, ability to Generate User Traffic, revenue from Advertising and Display, and the introduction of Android and Mobile Technologies. Its Weakness: excessive reliance on secrecy (such as: its detailed strategies or plans, its algorithm formula), falling Ad rates, Overdependence on Advertising (Google’s business model relies heavily on advertising and the numbers reveal that it gets more than 85% of its revenues from ads alone.), less experienced new CEO who is its founder Larry Page, its excessive spending on employees welfare. In the external environment analysis we can find that, the opportunities are: Android Operating System, Creation of new products/services to a new market: Google Glasses and Google Play, cloud computing, Android TV (Free & Bouygues box), and the threats are: the strong rivalry from Amazon, Yahoo, Microsoft and social networks (Facebook), the Hard competition in mobile computing, imposition of new taxes on its revenues separately in every country, governmental censor on its data may lead to trust lose on its services/products.
  11. 11. Business Economics: Mrs. Celia Bense 11 7- Google’s social responsibility: Google’s motto is “Don’t be evil”, this moral code helps to guide employees because it holds them accountable to the management, to themselves and to the users. Google pay so much attention on social causes, either inside the corporation or outside. We can observe how it treats and manage its employees. It offers to them benefits without any governmental laws, because the founders want a distinct culture for their company to create a unique brand. ‘’The goal is to strip away everything that gets in our employees’ way. We provide a standard package of fringe benefits, but on top of that are first-class dining facilities, gyms, laundry rooms, massage rooms, haircuts, carwashes, dry cleaning, commuting buses – just about anything a hardworking employee might want. Let’s face it: programmers want to program, they don’t want to do their laundry. So we make it easy for them to do both.” -Eric Schmidt, CEO Google confirms on its bylaws and code of conduct and prohibits any kind of retaliation against anyone of its workers who report for any violation of this code. 1- Serve our users (integrity, privacy,….) 2- Respect each other (equal opportunity employment, safe workplace,….) 3- Avoid conflicts of interest (personal investments, inventions, accepting gifts,..) 4- Preserve confidentiality (Google partners, confidential information,…) 5- Protect Google’s assets (intellectual property, Employee Data,….) 6- Ensure financial integrity and responsibility (spending Google’s money, …) 7- Obey the law (competition laws, anti-bribery laws,….) Google also has its causes, like the environment and how it makes efforts to promote the clean energy. It has established a separate department to do researches on clean energy establishes several clean energy plants. In any natural crisis, we can find how Google does raise funds through its Google doodle. 8- Conclusion: Possibility of conflict in Google’s management: Page bought Motorola Mobility for over $12bn. We should take into account the management change at Google. It was Page's first major business deal as CEO, a chance to finally spread his wings and put his distinctive stamp on the company. Motorola deal failed because of Page shows off. Google faces difficulty to retain its fun image after other companies’ scandals and its issues with the European Union concerning the user privacy and the monopoly action (Microsoft monopolistic actions, Apple tight control over its music distribution system). It allies or makes partnerships with companies that are popular with its labor abuse; Foxconn (controversies relating to how it manages employees in China and to the several suicides took place at its factories). Many may say that we must impose laws and restrictions on Google because of its way of doing business for not protecting users’ information privacy, but there is something they should know that Google’s business model based on being able to capture data from users that are used to attract the advertisers, 90% of Google’s revenues come from the advertising.
  12. 12. Business Economics: Mrs. Celia Bense 12 09- HUMAIN RESSOURCES: We are looking for our next noogler (new Googler) a person who is for the role, made for Google and many other things 1. INTERVIEW PROCESS : We are looking for bright and effective people who have team spirit. When you place an interview at Google, you are usually in front of four or five Googlers. They look for four things:  Job applications : An external recruitment strategy is one which a human resources department will systematically search the employee pool outside its own employees to fill positions , google will use advertisements in newspapers, job search websites, external recruitment also has some substantial advantages. Unlike internal recruits, you are getting an inflow of often completely new ideas with an employee who has not been exposed or overexposed to your corporate culture. An outside prospect often yields new ideas . External recruiting may lead to team stability, as teams may remain intact when hiring externally.  Role-related knowledge : google looking for people who have a variety of strengths and passions, not just sets of isolated skills. ensures that you have the experience and training necessary to be successful in your role. If you are a candidate for an engineer, for example, seeks to check your skills in coding and your areas of technical expertise.  screening interviews : Over the past two years, Google has spent a lot of time to make the hiring process as efficient as possible, reducing the hiring period and multiplying communications to the attention of the candidates. Involve Googlers its process certainly takes more time, but it is certain that it is worth it. early Googlers have identified these principles there are more than ten years, and it is they that allow us to remain faithful to that as it develops.  Physical exams and tests : The worst part of working at Google, for many people, is that they’are overqualified for their job. Google has a very high hiring bar due to the strength of the brand name, the pay & perks, and the very positive work culture. As a result, they have their pick of bright candidates, even for the most low-level roles. 2. INTERNAL STAFFING OR PROMOTION : When Google was less than a year, John Doerr, one of its shareholders, made a presentation on the use of an organizational system called
  13. 13. Business Economics: Mrs. Celia Bense 13 Objectives and key results or ORC (OKR English), First, you set a goal. Then you set up a number of "key results" quantifiable that will help you achieve this goal.As early as Monday, Google's 25,000 employees will receive an email informing them of the procedure in which Google Ventures is committed to providing $ 10,000 to each employee cache to facilitate the acquisition of a new business . 3. DEVELOPING WORKFORCE : Working with the Internet giant is an experience extremely coveted by students around the world, Google only accepts trainees in 1500 a total of 40,000 applications per year , A series of interviews "highly technical" than 45 minutes , it is mainly to apply my skills to a practical situation , Housing, roommates, Transportation: expenses paid , An integration seminar more than a week. 4. MANAGEMENT DEVELOPEMENT PROGRAMS : Mentoring in the workplace, increase the skills of being in business, entrepreneurs to increase the survival and growth of businesses Other objectives being to: Promote the profession, Develop a sense of belonging to the community, Improve communications, Educate the pleasure of the profession, Participate in the development of the profession, Succession Planning. 5. COMPENSATION AND BENEFITS : Googlers have the highest mid-career median salary at $141,000. Second place goes to Microsoft at $127,000.Googlers are extremely satisfied, as are Amazon, Apple and Facebook employees. But Google and Apple employees are also relatively stress-free. 6. LEGAL AND ETHICAL ISSUES : We must distinguish three things: ethics and morality, the law of Google, and finally the law broadly and that applies to us all , Google admits employ mostly white men. 10 -Understanding Marketing Principles and Consumer Behavior 1. What’s Google Marketing : The management process through which goods and servicesmove from concept to the customer. It includes thecoordination of four elements called the 4 P's of marketing: (1) identification, selection and development of a product, (2) determination of its price, (3) selection of a distribution channel to reach thecustomer's place, and (4) development and implementation of a promotional strategy. What is the Google marketing strategy? Ever wonder that with so many search engines out there, why is Google the first? Well it is not all because of the marketing strategy of Google; there is one aspect in the marketing strategy that makes it so great. It’s the little things combined, as you should
  14. 14. Business Economics: Mrs. Celia Bense 14 know what will boost your sale and what will not. Not every human is the same, thus you need to mix up the likings of all the different choices, and make it into something likeable by all. This might sound difficult, but it is simple really, all you need to do is keep a few tips and tricks in mind. The only way to understand, how and why Google is winning over all the other search engines, is to go over the marketing strategy of Google. Their strategy might be hard to understand at first, but you will see how they follow the pattern of smart decision-making. Google is a mix of excellent marketing ideas, smart choices, and the live on the edge and take risks, great advisors, and they provide us with great products. Read below to understand in detail the marketing strategy of Google. They use the power of less, the power of less means they give you a clean, simple, and interference free search page. When you open the Google page, you will see a Google logo and right in the middle is the search bar, which is fast in loading, and easily visible. During the early years, this was the only feature, because of slow internet connections. Google was also preferred because the other search engines were just full of confusing stuff, filled with ads and useless features. The second marketing strategy of Google is, they have posted no ads on the website, just preferences. The makers of Google understand what the people want, and give them exactly that, without any confusions. They understand that when people want to find some information, they do not want it crowded it with other things that might distract their work. The best way to make users happy, and make sure they are coming back is to give them exactly what they want. As you know that Google offers you reliable sources, not completely, but most of the time, so it gets things done. As a search engine, it is the best it can do. There is this marketing strategy of Google, they do direct marketing, not brand marketing. There are hundreds and thousands of business that market themselves using Google. That is how it grows, no matter if you have a small or a large frame business, you will use Google to platform it. Another advantage that is a marketing strategy of Google is that it has a long-standing reputation. According to the psychology of people, they want things that are better, no matter how slightly better they are. Currently, 60% of all the searches around the world are done by Google, which means the strategy works in a way. In the same marketing strategy of Google, they offer free services, which is a compelling technique. This way people become loyal to their services. In addition, to use many features of Google you must have a Gmail account, this is how they sell. The power of the vision is the next marketing strategy of Google, which means to be able to sell something that people do not want. To see the bigger picture, thinking about the future, as what people will need. You probably do not know when Google started there was not much use of it, as people did not know that to do with it. Then as the time went by, slowly people figured out that they needed Google, for more than one thing. Marketing strategy of Google is strong as it collected all the data of the world in one place and presents it to you when you want it. Identifying market segments In-market audiences is a way to connect with consumers who are actively researching or comparing products and services across Google Display Network publisher and partner sites and YouTube. To
  15. 15. Business Economics: Mrs. Celia Bense 15 qualify someone as being in-market for a specific product or service, Google takes into account clicks on related ads and subsequent conversions, along with the content of the sites and pages they visit and the recency and frequency of the visits. In this way, Google accurately categorizes users so you can target those most interested in your offerings. Reach potential customers while they’re actively researching and comparing products, regardless of what site they’re currently visiting. Available in-market audiences include:  Apparel and Accessories  Autos & Vehicles  Baby & Children's Products  Beauty Products & Services*  Business Services*  Computers & Peripherals  Consumer Electronics  Consumer Software  Dating Services*  Education  Employment  Financial Services  Gifts & Occasions  Home & Garden  Real Estate  Sports & Fitness… 2. The consumer Buying Process Jim Lecinski knows there’s only one Zero Moment of Truth. As the managing director of U.S. sales and service for Google Inc., Mr. Lecinski knows a thing or two about how consumers make the jump from being interested in a product to buying it. What exactly is the Zero Moment of Truth?
 It’s that moment after you have been made aware of a product or service, but before you pick it up off the shelf and drop it in your cart. It’s when you use all the technology that you have at your disposal to research, look for a better deal, look at ratings or reviews, learn more about it to become an instant expert. It’s those series of behaviours after seeing the ad stimulus — tv, web, radio, etc. — but before you’re standing at the shelf, picking a product. 10- Producing 1. What Google offers companies ? Google offer a wide range of tools available to businesses to help them develop their active, whether or not through the Web. These programs are the backbone of the society, and enable entrepreneurs and publishers around the world to grow their business. The advertising programs, which range from simple text ads to rich media ads, help businesses find customers, and publishers to earn money
  16. 16. Business Economics: Mrs. Celia Bense 16 through their contents. Google also offer cloud computing tools for businesses that allow the latter to save money and increase productivity. 2. What Google offers for the Web ? Google create products that we hope will help to improve the Web, and thus, your user experience. Including products such as Google Chrome and Android, our goal is to simplify and speed user tasks on the web. Google also pledge in favor of an open web for everyone. google is indeed involved in various projects aimed at facilitating the contribution of developers to the Web ecosystem for the benefit of all. We strive to make the Web more environmentally friendly, using our resources more efficiently and supporting initiatives for renewable energy sources. The Web has undergone significant changes since the creation of Google. What has not changed, however, is faith in the infinite possibilities of the Internet. 3. Developing new products Google ís Mission Statement: ìOrganize the worldís information to make it universally accessible and useful . Google has been at the core of innovation and their product development strategy has been an idol for many companies. Though a bit dated, there are multiple links on the internet which discuss the approach followed by Google for New Product Development. The following link is from a presentation by Marissa Mayer, then Google's Product Manager, to the Silicon Valley Product Management Association. The process followed by Google for new Product Development is to nurture the smart people in the creative environment and outlined as follows: 1) Accept ideas from everywhere 2) Prioritization of top 100 ideas 3) Having Small, Agile, Engineering Teams 4) Promoting Self-organization and visibility 5) Thinking user-centric design 4. The product life cycle One of the many reasons Google consistently brings innovative, world-changing products to market is because of the collaborative work we do in Product Management. With eyes focused squarely on the future, our team works closely with creative and prolific engineers to help design and develop technologies that improve access to the world's information. We're responsible for guiding products throughout the execution cycle, focusing specifically on analyzing, positioning, packaging, promoting and tailoring our solutions to all the markets where Google does business. At Google, we put our users first. From innovative software products like Gmail, YouTube, Chrome, StreetView to mobile devices like the Android, we build products that organize the world's information and make it universally accessible to our users. Google products are the lifeblood of who
  17. 17. Business Economics: Mrs. Celia Bense 17 we are. The Product Management team works closely with our engineers to guide products from conception to launch, and with our business partners to generate profitable revenue streams. As part of the Product Management team, you bridge technical and business worlds as you design technologies with creative and prolific engineers and then zoom out to lead matrix teams such as Sales, Marketing and Finance, to name a few. You have a bias for action and can break down complex problems into steps that drive product development at Google speed. As a Product Manager, you can be part of shaping Google’s next game-changer. 11- BRANDING AND PROMOTING : Many roducts are designed , three important tools for acomplishing this taske are brandinng , packaging , and labeling, once products are identified ; sellers must also think about making them khown, thanks to promotions. 1-identifying products : The name of google is khnown , brand in the word , many products are designed , google chrome , youtub , google map, google earth. 2-Promotion : Google is a technique designed to sella product , oogle services are therefore free, and very popular. Google has built a dynamic and innovative corporate reputation through the publication of useful software and services for all, especially free and efficient . 3-advertising : You want to attract more customers? Sign up for Google AdWords so that users find you when they search for your products or services. Want to monetize your website? Google AdSense allows you to display relevant ads next to your own content online. You get paid . 12- THE DISTRIBUTING : 1-THE DISTRIBUTION MIX : Direct sales: It allows you to sell your products or services directly to end users. You do not need to appeal to intermediaries, Sales patterns this channel are telephone sales, at home, in the markets, in events such as trade shows, and of course, selling your own shop or retail space, real or virtual. 2-WHOLESALING : merchant wholesalers : so there was heavy discount on the best brands ,
  18. 18. Business Economics: Mrs. Celia Bense 18 full service merchant wholesaler : provides credit , marketing , limited service merchant wholesaler : provide a few services sometimes murely storage ,google company , creating a powerful position for themselves by bringing together previously unknown buyers and sellers , Internet Solution Providers Intermediaries providing the enabling technologies to support these business-to-business e-commerce efforts. 3-RETAILING : Retail marketing is changing. Today, success means connecting with your most important customer: the omni-channel shopper. Here we detail the three ways retailers can reach this shopper by measuring behavior, providing localized information, and creating the right organizational structure.
  19. 19. Business Economics: Mrs. Celia Bense 19 References: - Girard, Bernard. The Google Way: How One Company is Revolutionizing Management as we know it?, No Starch Press, New York, USA, 2009. - http://searchenginewatch.com/sew/news/2066479/google-ipo-to- happen-files-for-public-offering - http://teamly.com/459-goals-at-google - http://blogoscoped.com/archive/2009-09-05-n83.html - http://www.123HelpMe.com/view.asp?id=167474 - http://www.google.com/about/ - https://www.gv.com/lib/how-google-sets-goals-objectives-and-key- results-okrs - http://en.wikipedia.org/wiki/Google - Goldman, Aaron. Everything I Know about Marketing I Learned From Google. McGraw Hill Professional, Aug 26, 2010.

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