Strategic Marketing - Essay Example

?Strategic Marketing Table of Contents Strategic Marketing Table of Contents 2 Section 3 Question 3 Question 2 4 Question 3 5 Question 4 6 Question 5 7 Section 2 8 Question 1 8 Question 2 10 Question 3 12 Question 4 13 References 16 Bibliography 17 Section 1 Question 1 Your company wants to develop and market a new dental chewing gum. It will be designed to attack plaque and be eaten after meals, and is also pleasant to chew. Explain which market segment should you target and what is the best approach to market the product. The new product that is a dental chewing gum would be targeted at middle and upper middle class segments. In addition to this the company would specifically target the youth and middle age individuals falling under the age bracket of 18-45 under its list of targeted customers. The choice of the target market assumes significance considering the fact that products like chewing gum are especially popular with the youth and middle aged individuals. The chosen market segment for the new product is also viable for the company as these individuals lead a very fast life and can easily use chewing gum as a substitute for toothpaste. Moreover the eating habits of this category of individuals also include food items that are likely to cause more plaque and dental problems. These food items include products like chocolates as well as other high calorie and cheese based products like pizza and burgers. The fast paced lifestyles of these individuals make them an ideal choice for the company as a potential target market for the new chewing gum that is to be launched in the market. The company’s targeting strategy would largely involve positioning the product as a substitute for toothpastes and also as a good flavored chewing gum that can also be munched in leisure time bringing them the joy of a wonderful taste as well as a product that takes care of their teeth and brings about health benefits. Question 2 “The first principle of management is that the driving force for the development of new products is not technology, not money, but the imagination of people.” -David Packard- What do you think of this statement? - Discuss David Packard, the co-founder of one of leading technology company, Hewlett-Packard was also very popular for his technological innovations (Hewlett-Packard, 2011). In the above statement, he emphasized on the imagination of people for bringing new product development with innovative technologies. In the gradual development of globalization, the technological advancement is one of the most vital factors. The process of globalization has led to change the thoughts, views and opinions of human beings and they become more capable of imagining which was once considered to impossible (Samli, 2011, p.125). The capability of imagination is the most powerful strength of mankind that has brought significant developments. Basically, the imagination acts as a tool for inspiration and it motivate people to be innovative. In this regard, Morgan has commented correctly that “imagination motivates people to climb mountains, to paints pictures and to win races” and people are applying their imagination in the field of business management (Morgan, 2001, p.79). The greatest innovation in the world is a successful outcome of imagination. People may possess necessary technological knowledge and expertise or necessary monetary requirement. No doubt that these factors are indispensible for product development but the first priory is creativity based on with the technological knowhow is applied for practical implications. Archytus of Taremtum, the great mathematician during 400 B.C. imagined and created a wooden bird which was able to fly. Finally, in 1950s, George C. Devol first invented and patented modern robot which was based on imagination developed by Archytus 400 B.C ago. There are also an ample numbers of such examples that proves that imagination is prime factors behind development of new products (Patel, 2011, p.5). Question 3 “Evaluation consumes high proposition of marketing executives’ time and energy” in your opinion, why is this so? Discuss. In the process of strategic business management, evaluation is one of the most critical steps for any company. In the process of evaluation, the effectiveness of implemented strategies and performances of each responsible employee are assessed for further betterment of entire situations. The performance evaluation of each employee is helpful in identifying the areas of improvements though proper performance appraisal methods. These performance appraisal methods are also meant to offer promotions, higher remunerations and incentives (Lyster, Arthur and Arthur, 2007, p.18). In the above comment, it states that the process of evaluation affected time and energy of marketing executive that can be used for more productively. The task of marketing executives generally includes the development of marketing campaigns and promotions of products and services for generating higher amount of sales. Their tasks are very challenging and they have to use their creativity to attract the target audience and target market. Creativity comes from the imagination and for motivating the marketing executive to think creative marketing ideas, it is necessary to provide sufficient time and energy. In the evaluation process consumes the time and energy of each employee including marketing executive. Therefore, the management must consider such drawbacks of evaluation for marketing executives. William R. King have identified that performance appraisal of marketing executives are difficult to interpret as task of marketing like creating ideas cannot be directly quantify. However, in many organizations, the level of revenues is often taken as an indicator for performance of marketing executives (King, 1964, p. 659-666). Question 4 Based on your understanding, discuss how does the internet influences trends in the marketing channels. The technological advancements and its implementation in the business activities have led to bring significant development. With the increasing competiveness, the business activities like marketing, manufacturing etc has become more necessary. The introduction of internet has revolutionized the entire business activities. The most influential aspect of business due to implications of internet is the marketing activities. In today’s competitive environment, marketing through internet has become one the primary basis for strategy development process. Internet has been used for multiple tasks in marketing starting from the business to business and business to consumer activities. Besides, it also plays a very crucial role developing and maintaining the relationship with business partners and consumers (Gurton, 2003, p.78). Moreover, with the increasing use of internet has also offered a number of marketing channels through which it has become very easy to communicate with the target audience. The company’s website has become the most vital marketing channel which is entirely backed by internet. Such websites is very helpful for various marketing activities like customer relationship management, on-line shopping, communicating with business partners etc. On the other, social websites have also become a major platform though companies promote their products, services and other information on new development. At presents, the social websites like Facebook, Twitter, and YouTube etc has become very effective channels to display the promotional activities. Besides, it is possible to reach to the specific target consumers as per the requirement. With the help of video and 3D displays, the consumers can avail the demonstration of the products very easily and it is also very cost effective for the company. This has use of the manual channels for distributions and other activities. By the means of internet, the companies are able to directly contact with consumers (Chaffey et al, 2008, p.152). Question 5 Discuss some of the problems that might be encountered by logistics, in the distribution and supply chain management. Logistics and supply chain is an important part of a company’s business strategy and hence it becomes important to remove the bottlenecks in this part. Firstly organizations may face issues in location of facility and configuration of the supply chain process. Improper locations of facilities may lead to frequent logistics that can on one hand increase the cost for the company and on other hand increase the delivery timings. This can lead to issues of over stocking and stock outs both of which would have drastic effects on the firm’s profitability. Secondly improper selection of suppliers can also lead to quality and mass customization issues that can reduce the competitive ability of the firm. Fourthly improper management of inventory can also lead to issues like increase the lead time of the production and supply chain. Ensuring practices like Just in Time can help firm to maintain optimum inventory levels that would help in cost reduction and also reduce the inventory carrying costs. Finally improper information handling and issues in information sharing can lead to disastrous consequences for an organization. This may lead to wastage and increase the cost of a company. Hence effective information sharing in the form of real time information sharing should be used to ensure effective sharing of information. It is also essential to maintain a good relationship with the suppliers so as to ensure a better floe of information that can mutually help in the business prospects of the firm as well as the suppliers in the market (Chandra & Kamrani, p.95, 96). Figure 1: Issues in Supply Chain Management and Logistics (Source: Chandra & Kamrani, p.96) Section 2 Question 1 Why is the value of assessment considered as an effective way to integrate marketing activities? Justify your answer. In the modern organization, the concept of marketing has changed significantly and it mainly aims to enhance the value of the business by creating value for the customers. The management in the modern organization has been able to identify the difference between the selling and marketing. Traditionally, the business organization used to focus on pushing the products and services to the customers; whereas, currently, the products are more costumers oriented and aims to create greater value for consumers. On the other hand, at present, the modern organizations have been transforming to post-modern organization as a number of improvements and betterment have been incorporated in post-modern organization. In the field of marketing activities, the managements in post-modern organization are now focusing on integrated marketing that combines and aligned all the cross-functional activities and other necessary aspects of marketing together for better value creation. Specifically, it unifies entire marketing methods for better customer values, product development, pricing, distribution, etc (Nankervis, 2005, p.192). Assessment is a primary task in process of integrated marketing as it is helpful in measuring the integration of marketing. In the prevailing scenario, the integration of marketing has been considered as core aspects marketing activities. However, it is difficult to understand or articulate the overall extent of integration process in marketing activities. Integrated marketing is emerging concept, and this process, the marketing activities are integrated with three major aspect of a business. These three major aspects are competitiveness, financial and effectiveness. In the process of value assessment, these major aspects are analyzed. This assessment is conducted through a systematic process. There are certain components in the assessment plans like marketing needs, major issues affecting the efficiencies, required resources, market competiveness, major barriers in implementing new strategies etc. While assessing theses components, the above stated three major aspects i.e. competitiveness, financials and efficiencies are directly combined with marketing activities. In case of executing new promotional strategies for any products of services, the financial viability, must be assessed as marketing activities required significant amount of investment in proportion to the sales revenues. On the other, while promoting the idea of a company, the competitor movements should be taken into consideration. Specifically, the marketing activities should be designed for encountering the competitors. Finally, after these activities, the effectives of marketing also need to be assessed in many ways. Again, the financial performance is the most vital parameter to assess the effectiveness of marketing activities. In this entire process, the multiple activities like promotions, product development, communication advertising etc. Based in the assessment plans the marketing activities are framed and executed accordingly in order to the obtained the greater business value. Question 2 Why is Customer Relationship Management very important to a company and who are the people involved? Justify your answer. The importance of customer relationship management arises from the fact that in the existing competitive business environment it is important to not only acquire new customers but to also retain their existing customers. Moreover it has also been widely accepted that it is less costly to retain existing customers than to acquire new ones. In this regard it is essential to maintain good relationship with the customers. The development of the concept of customer relationship management is a step towards maintaining a good relationship with the customers in an attempt to ensure repeat purchases. This would help ensure better relationship with the customers and would also help in ensuring that the company is better acquainted with the demands of the customers. This would help in ensuring a better positioning of the product or service in the minds of the customers leading to competitive advantage for firms and business organizations. Customer relationship management also helps in ensuring customer loyalty. Customer loyalty helps firms to generate greater price tolerance among the customers leading to better profit margins and also ensuring a flow of revenue even during periods of crisis and price rise. Effective customer relationship management practices can also help in creating interests about the product or service even for dormant customers that could lead to business advantage for an organization. Customer Relationship Management also involves effective after sales service that can help generate a good image of a brand or product in the minds of the customers. Effective grievance handling would ensure better relationship and greater degree of satisfaction levels of the customers that would help ensure better positioning of the company in the minds of the customers (Kumar & Reinartz, 2009, p.4-5). The major stakeholders in the process of customer relationship management include the customers, employees of the organization, the suppliers and finally the partners or owners of the organization. Among these stakeholders customers are the most important ones in the entire process as the entire package of the customer relationship management strategy is focused on the customers. It is very important that a customer relationship management strategy largely includes the interests of the customers as it would help generate greater effectiveness of the strategies being framed by the organization. The employees are other major stakeholders of an organization as they are the ultimate people who would be actually in touch with the customers. This holds true especially for the frontline sales and service personnel who are in direct contact with the customers. In addition to the employees and the customers the suppliers of an organization are another important category of stakeholders in the process of customer relationship management. Suppliers essentially generate the inputs in the supply chain and a close coordination with the suppliers is very essential for the success of a customer relationship management policy of an organization. Finally last but not the least important stakeholders in a customer relationship management process include the partners or owners of an organization who are the ultimate individuals that initiate and conceptualize the process of customer relationship management. The success of a customer relationship management strategy would therefore require a close co-ordination and understanding among each other so as to generate a sustainable development for the organization (Rai, 2008, p.27). Question 3 Describe the student market segments for AeU (Asia e University). Discuss to what extent are these segments measurable, accessible, substantial, differential and actionable. Asia e University offers courses in various streams that include subjects in science, arts as well as management. The course program of the university has provisions for education for college level, university and doctorate level courses. In this regard the target market segments for the university would include students who have completed their high school and are looking forward towards professional career based courses like science, engineering and management. The university offers customized courses with attractive infrastructure to meet the needs of the students (Asia e University, 2011). Considering the international expansion into India the company would find significant number of students for its courses. These segments are largely measurable that is mainly attributed to the large number of students in the age group of 18-25. According to the data available with the CIA, India is the second largest populous nation of the world and a majority of this population falls within the target age group for the university. In addition the rapid desired made by the nation in the area of Information Technology and global outsourcing the demand for professional courses is very high in India. An international exposure would certainly help the students gain better leverage of the globalised environment (CIA, 2011). This makes the target market segments highly accessible, substantial measurable and differentiable. Asia e-University with its large bouquet of professional courses and best quality global infrastructure can go about a long way in creating a niche for itself in the Indian market. The flexible course material and student packages for professional courses would help the university to attract working executives for its part time courses thereby generating significant advantage for the organization (Entrepreneurship Institute Malaysia, 2011). These aspects makes the target market segment for the university highly actionable as its professional touch and expertise has the potential to emerge as a significant competitive advantage for the university in the Indian market and would also add to the growing list of accolades for the university in the long term. Question 4 Name three Malaysian products which have failed in the market place? Justify as to why do you consider them as product failure. Also identify the reason(s) for the failure(s). Malaysia is an emerging and developing economy and it has become of the attractive market for investment in the South- East Asia. Moreover, the Malaysian Government is also encouraging the international investors for making direct investment. On the other hand, the domestic organizations are trying to expand their market in domestic and international market. However, due to certain drawbacks some of the Malaysian products have failed. This section will discuss three real examples of Malaysian product failure including failure of distance courses offered by Asia e University in India; failure of the proton cars in Malaysia; and failure of eco-tourism in Malaysia. Asia e University (AeU) launched its distance education courses in India. During 2009, the AeU entered in India after getting approval from the V N Rajasekharan Pillai, Chairman of Distance Education Council. However, the prevailing pressures from the Indian academicians, it was declared an illegal educational institute. However, the AeU that after its get green signal from Indian regulators it determined to open multiple study centre. AeU is a Malaysia based distance university and due to political pressure and baseness it proved as failure in India. The management of AeU could have distinctly analyzed the political and other factors that led to failure of AeU (Kasturi, 2010). Malaysia has a good potential for eco tourism with its large backwaters and rich bio diversity with considerable natural fauna and flora. However the eco tourism has failed to make a mark among the international audience mainly because of the fact that there is lack of interest in various quarters. In addition to this under development of various regions and lack of infrastructure is another reason for the under development of this industry (Biscoe, 2010). Another major product failed in Malaysia was the cars offered by Malaysian automobile manufacture, Proton. The failure of national car company Proton was shock for the entire economy. However the management and decision makers were responsible behind such failure. According to the economies and experts, for sustainability it is necessary to sell at least 1 million cars every year. However, in spite of having the largest portion of Malaysian car market, it was not able to sell more than 227,000 cars. Besides, the quality of cars and its parts were of low quality; whereas, the competitors were highly efficient in terms of quality and customer services. The Malaysian government also made the situation worse by not liberalizing Malaysian car market to protect Proton. However, Proton was failed to serve the market with better products and reliable customer services (Guan, 2008). References Asia e University. (2011). AeU. Retrieved September 23, 2011 from http://www.aeu.edu.my/. Biscoe, M. (September 30, 2010). Tourism Issues in Malaysia. Retrieved on September 23, 2011 from http://www.ehow.com/list_7211449_tourism-issues-malaysia.html. Chaffey, D. et al. (2008). Internet Marketing: Strategy, Implementation And Practice. 3rd ed. Pearson Education India. Chandra, C. & Kamrani, A.K. (2004). Mass customization: a supply chain approach. Springer. CIA. (2011). CIA - The World Factbook. Retrieved September 23, 2011 from https://www.cia.gov/library/publications/the-world-factbook/geos/in.html. Entrepreneurship Institute Malaysia. (2011). Asia e-University. Retrieved September 23, 2011 from http://eimalaysia.com/affliations.php. Guan, (August 07, 2008). The failure by Proton to find a foreign partner is a warning signal. Retrieved on September 23, 2011 from http://dapmalaysia.org/english/2008/aug08/lge/lge891.htm. Gurton, A. (2003). How to get into marketing and PR. Cengage Learning EMEA. Hewlett-Packard. (2011). David Packard. Retrieved on September 22, 2011 from http://www8.hp.com/us/en/company-information/executive-team/packard.html. Kasturi, C. S. (August 15, 2010). Regulator nod to illegal courses. 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Cengage Learning. Hill, C. W. L. and Jones, G. R. (2007). Strategic Management: An Integrated Approach 8th ed. USA: Cengage Learning. Read More