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(Pollack) The first phase, Strategic Marketing Analysis, includes observing every element of the marketplace such as target market, industry growth, market size as well as competitors. This is considered as the "Opportunity Analysis" stage when the firm is able to identify if there is indeed an opportunity in the market (Pollack). In the case of Advanced Driving School, the company has passed this phase as it has identified its target market, growth potential and existing competition. According to Oliver, the firm's core market is primarily comprised of fleet-drivers whose trainings are sponsored by fleet operators.
Apart from this, the company also caters to private motorist and motor manufacturers. Indicative of the bright prospects in the industry, Oliver forecasts that profits would increase exponentially on the second year of sales. The company has also considered its competitors and identified its competitive edge. As cited by Oliver, quality of service provided by other driving schools remain questionable since they do not use qualified instructors as opposed to the company's high ranking former police instructors.
The second phase, dubbed as Market Entry Strategy, involves the actual development of strategy. This stage entails the review of product strategies, presentation of service offering, pricing scheme, enticing customers and determination of the place where the service would be rendered (Pollack). Given the case facts, Advanced Driving School is within the middle of this phase. Although it has budgeted for marketing, considered the above elements and recognised the problem with regard to its current location, the company does not have a concrete marketing program that would enable it to completely penetrate the market and establish a strong foothold in the industry, especially in the long run.
To be able to successfully maintain sustainable demand, the firm should first solidify not only its current sales strategy, but its overall marketing program as well. The company should be able to design the effective marketing mix to satisfy the wants and needs of its target market. (Burns & Bush) Only when Advanced Driving Schools has come up with its marketing strategy can it advance to the third phase, i.e. Strategy Implementation. In this stage, the firm should be able to integrate the Four Ps in concert with one another to be able to execute an effective marketing program.
(Pollack)Question 2: What needs to be done to develop Advanced Driving School's sales and marketing activities in order to significantly increase sales In order for the firm to continuously boost sales, Advanced Driving School should ensure that its sales and marketing activities are apt for its intended market. In this regard, prior to undertaking is sales and marketing program, the company should assess the preferences of potential customers. As such, the company should primarily consider conducting marketing research.
Through this process, the firm would be able to gather significant information which would help determine potential clients' wants and needs, and design marketing strategies that would
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