Marketing Strategies for Global Bikes Company - Essay Example

? Marketing Strategies Section Introduction The speciality bike manufacturing company d Global Bikes Company, located in Melbourne of Australia, should largely consider the various elements of macro-environment for the purpose of attaining its various expected business targets. This is due to the fact that the different elements of macro environment which include demographic, economic, technical, natural and political factors tends to affect the business organisations like Global Bikes by a significant level (University of London, n.d.). The main purpose of this essay is to develop an effective marketing strategy for Global Bikes Co. considering various significant aspects. The different major aspects include the identification of the target market, setting marketing objectives and the facets of marketing mix strategies of Global Bikes. Section 2: Target Market The target market for Global Bikes can be identified by executing certain market segmentation variables on the basis of four major categories that include demographic, psychographic, geographic and behavioural environment. The important market segmentation variable of the demographic environment is concerned with the aspect of age structure. Fundamentally, the demographic environment is very much important for the business organisations due to the fact that it significantly deals with certain vital components such as market size and population among others. In this regard, Global Bikes must consider the significant factors of age structure in relation to the segmentation variable of demographic environment while implementing its marketing strategies. In this connection, the company should emphasise largely upon the different age groups of different people that include the teenage, children, young, old age and adults. Thus, it can be stated that the Global Bikes should target its customers or people belonging to the age group of 10-50 years that largely constitute the students, workers and children among others (Thomas, 2007). In terms of segmentation variable in relation to psychographic market environment, the Global Bikes should consider the lifestyle factor of the target consumers that generally include their attitudes, interests, emotions, values as well as beliefs. With the intention of developing effective marketing strategies, it is very much necessary for the business organisations such as Global Bikes to strictly consider the attitudes and the interests of the consumers regarding the purchase of their products. In this context, regarding psychographic market segmentation, the target market or the consumers of Global Bikes would be those customers who enthusiastically possess utmost interest towards the products such as bicycles and related accessories. This particular consideration upon the interests along with the attitudes of the customers on the basis of psychographic or lifestyle market segmentation ultimately would contribute to attain noteworthy competitive position along with expected business goals for the company (Wright, 2006). With due consideration to the behavioural market environment, Global Bikes should emphasise upon the segmentation variable of knowledge of particular products, adequate implementation of the products along with the development of understanding regarding the responses towards the different products that are generally represented by the customers. In this context, the behavioural aspects based market segmentation tends to encourage the marketer or the business organisation to possess deeper understanding of the buying procedures of the customers. Moreover, the aspect of behavioural segmentation environment can also assist the business organisations to largely identify their potential target markets. The conception of behavioural segmentation generally include certain decisive facets such as adequate application of a specific brand, buying procedures of the customers, effective decision criterion and finally the attitudes along with the preferences of the decision makers (Beide, 2003). In terms of the segmentation variable relating to geographic segmentation, Global Bikes should identify its potential target market following the market segmentation by largely emphasising upon a definite geographical area or location. Generally, the idea of geographic market segmentation is viewed as the most ordinary type of fragmentation that has been largely executed by most of the business organisations. With this concern, Global Bikes might target its business market towards the population that largely resides, especially in the metropolitan cities, where most of the people prefer the related products of the company i.e. bicycles by a large extent (Larsen, 2010). Section 3: Setting Marketing Objectives for Global Bikes Co. The conception of marketing objectives fundamentally depicts that the business organisations plan to attain significant competitive position by proper execution of their effective marketing functions. Thus, the major marketing objectives for Global Bikes would be to maximise their profit and sales, raising significant market share along with profitability as well as productivity of the organisation, enhancing its brand or product awareness towards the customers and most importantly to sustain in the competitive world of global financial business market. For the purpose of attaining these momentous marketing objectives, the business organisations should identify the target market more efficiently that might help it to attain momentous competitive position over its competitors by a considerable level (Stone, 2001). In this connection, every business organisations intend to focus upon the foremost marketing objective of raising profits and market share due to the fact that the survival of the business organisations in this competitive business market largely depends upon its determined marketing objectives. Besides, the marketing intention of raising the market share and revenues considerably, contribute towards enhancing the profitability along with the productivity of the business organisations by a large extent (Kotler & Lee, 2007). Global Bikes must focus upon the various decisive marketing objectives on the basis of the marketing conception of SMART criterion. In relation to the SMART, the marketing objectives of Global Bikes should be very much specific in certain particular areas that include sales, market shares and earnings among others that must fulfil within a definite time period. The marketing goals of Global Bikes should further be measured in terms of various costs as well as quality factors that might help them to attain their business targets. Additionally, the various crucial marketing objectives of Global Bikes should be very much relevant with the mission of the organisation. Besides, the strategic marketing process of the organisation should identify a definite completion date or should posses the SMART marketing facet of time-bound for fulfilling the determined marketing objectives by a large extent (Richman, 2011). Section 4: The Marketing Mix The conception of marketing mix is fundamentally viewed as an effective business marketing tool that is broadly used while marketing any particular product. In order to execute various marketing functions, the business organisations usually focus upon four noteworthy aspects that include promotion, place, product and price. These particular aspects are popularly recognised as the primary components of marketing and collectively lay the formation of the notion illustrated through the framework of marketing mix. The significant role of the marketing mix for every business organisation is that it deeply influences the response of the buyer towards purchasing any product along with generating greater customer satisfaction (NIOS, n.d.). Product Strategy In relation to the conception of marketing mix, the term product generally signifies the commodities that are fundamentally delivered by a particular business organisation such as Global Bikes towards the large base of their customer levels, especially for selling and ultimately to earn huge profits. For the purpose of successfully attaining the marketing objectives in relation to product, Global Bikes has to focus largely upon its target market so that it can adequately place the various products in the market and can attain huge revenues along with raising the market share (NIOS, n.d.). The idea of product strategy denotes an effective business policy that assists in selling various valuable brands or products in the targeted market. In this connection, the different components of product strategy include value proposition, target market, and investment planning. These components are very much significant for every business organisation because they lay the initial groundwork of marketing actions for the purpose of selling the various products to the ultimate customers. The above mentioned components of product strategy pose significant impact upon Global Bikes while selling the offered products in the marketplace. The business organisation should clearly identify its target market and value proposition along with initiating adequate investment planning with the intention of attaining its expected business goals (NIOS, n.d.). It has been recognised that the idea of product classification has been executed by most of the business organisations viewing this decisive factor as one of the effective marketing strategies. In this context, according to Adeoti (n.d.), the different products can be segregated into different categories like convenient goods, shopping goods, durable goods and unsought goods. The products of Global Bikes would thus be the bicycles and the related accessories that might be considered as specialty or convenient goods through which the organisation can make effective marketing decisions focussing upon the classification of their products (Adeoti, n.d.). The term product positioning is intimately related with the aspect of market segmentation through which the business organisations such as Global Bikes intends to generate a positive identity or image in the minds of the customers. In this regard, the company might position its valuable products into the customers’ minds by conducting attractive promotional campaigns through advertisements (NIOS, n.d.). Apart from the aspect of product positioning, the notion of branding also plays a noteworthy role in the attainment of the determined marketing objectives of the business organisations. The marketing conception of branding is widely considered as a symbol or a name normally used by most of the business organisations that helps to recognise its different products as well as differentiates those from its competitors. This particular notion of branding can be very much significant for Global Bikes in order to generate a strong image of the products as well as the organisation towards the customers and the business workplace at large (Healey, 2008). Pricing Strategy In relation to marketing mix, the idea of pricing strategy is fundamentally defined as the method that most of the business organisations initiate while determining the price of their valuable brands or commodities. Hence, it is quite vital for Global Bikes due to the fact that the pricing factor tends to significantly affect the demand for the brands or products along with the profitability of the organisation (NIOS, n.d.). The different methods of pricing fundamentally comprise of penetration pricing, price skimming, competition-based pricing and temporary discount pricing. The benefits of executing these pricing methods include probable chances for gaining huge market share, generating high stock turnover, making effective control upon different costs and ultimately sustaining its competitive position, its profitability as well as its productivity. Along with the benefits from pricing methods, there also lie certain crucial disadvantages. The major disadvantages of the pricing methods include diminishing profit margin through frequently offering low-price products, incompetency to stay competitive in the business market as compared to the competitors. These limitations, subsequently, can hamper the sales along with the market share of the business organisations due to the offering of low cost related products (Pierce College, 2008). In relation to the aspect of penetration pricing strategy, the business organisations typically sets low price for their various commodities expecting that it might raise their market share and can attain greater competitive position in future. From the perspective of the price skimming method, the business organisations generally sets high prices for their products to recover various expenditures that are related with the advertising along with manufacturing the valuable brands. In terms of temporary discount pricing method, the business organisations especially the small business organisations usually offers temporary discounts for their valuable products for the purpose of raising their sales significantly. From the viewpoint of the competitive-based pricing, the business organisations might lower the cost of their products for the intention of meeting the prices with their competitors (Pierce College, 2008). In respect towards the above discussed different pricing methods, the most important pricing method that Global Bikes might look for as a business strategy, is penetration pricing. The aspect of penetration pricing strategy might assist the business organisation to raise significant level of their customer bases offering its various products in low prices. Thus, it can be stated that Global Bikes might adopt the method of penetration pricing as its business strategy with due significance. In this connection, the organisation should also concentrate upon the competition-based pricing as secondary with the motive of staying competitive in the business environment as compared to its competitors (Pierce College, 2008). Place Strategy The conception of place strategy is also one of the important strategies that can significantly assist Global Bikes in the successful accomplishment of the determined marketing objectives and to substantially facilitate its market share. The place strategy of any business organisation is mainly concerned with developing a proficient as well as a valuable way of storing and delivering the products to the target market or the customers. The significance of place strategy lays in the general fact that it makes the products readily accessible to the customers assisting the organisation in expanding its reachability to the ultimate target customers (NIOS, n.d.). Global Bikes is mainly positioned in Melbourne, Australia engaged with delivering its valuable products or brands such as the bicycles and related accessories through different intermediaries. Besides, Global Bikes might deliver its brands or products to its target customers either through retailing stores or online as a medium of internet. In this context, the different sort of intermediaries or the distribution channels that the business organisation might perform during the execution of its business functions generally include wholesalers, dealers and retailers. Among these three kinds of distribution channels or intermediaries, Global Bikes might perform its business activities acting as retailers. The business organisation as retailer might execute its functions directly with the target customers by selling bicycles and various related accessories. As the organisation usually plans to grow by attaining a considerable level of market share with the continuous introduction of new products into the target market, the distribution channel of retailing would be appropriate for the organisation (Pierce College, 2008). Promotion Strategy The aspect of promotional strategy is commonly described as reporting, controlling as well as persuading the decision of the consumers towards purchasing any particular product. The main objectives of promotion strategy largely initiated by every business organisation include delivering useful information to the customers, attaining competitive advantages through product differentiating, raising the sales volume and ultimately increasing the value of the products along with the brand (NIOS, n.d.). The idea of Integrated Marketing Communication (IMC) is viewed as the incorporation as well as the harmonization of all communication tools that poses a significant impact upon the consumers and the business organisations by a considerable level. The chief objectives of IMC normally include managing along with clarifying productive relations that exist between the consumers, stakeholders and the employees by generating and sending certain uniform messages to them for the purpose of making momentous organisational profits. The IMC is very much important for Global Bikes due to the fact that it contributes largely upon the segmentation of the customers along with their own preferences. The IMC budget approach should be kept at the lowest level as it would help to make logical investments towards the promotion of the products (Maria & Ionela, 2009). The communication procedure in terms of promotional strategy towards the target market for the business organisations would be through the execution of certain promotional activities like personal selling, advertising, direct marketing and online media among others. The major benefit of using these techniques is to increase the customer awareness regarding the products along with imposing substantial effect upon the economic performance of the organisations (Maria & Ionela, 2009). In relation to the aspect of promotional business policy, it can be stated that the push strategy tends to promote the various products towards the trend of business trade; whereas, the pull strategy tends to promote the brands or the products toward the ultimate customers. On the basis of this particular difference, it can be stated that Global Bikes might apply the pull strategy in its initial stage of expansion with the motive of generating increasing revenue margin along with market share by directly selling its valuable products to the target customers (Maria & Ionela, 2009). Conclusion The different facets of the marketing mix that generally comprise of the variables which include promotion, place, product and price might contribute largely towards fulfilling the marketing as well as business objectives of Global Bikes. The various expected business objectives of Global Bikes fundamentally include the desire to attain greater market share along with sustaining the productivity in the current competitive financial market, raising the product awareness to the customers and ultimately to emerge as a worldwide business leader in the workplace. In this context, it can be stated that Global Bikes could successfully attain the above mentioned business goals by focussing upon the several marketing concepts such as the marketing mix, market segmentation and recognising the target market. This is due to the reason that these marketing conceptions eventually lay the initial foundation of the marketing procedural functions along with successfully implement the marketing strategies of Global Bikes. Additionally, the proper utilisation of the marketing conceptions would also assist Global Bikes to develop its various valuable products or commodities along with preserving its competitive position over the competitors by a considerable level. References Adeoti, J. O. (No Date). Product classification strategy. Retrieved from http://www.unilorin.edu.ng/publications/adeotijo/PRODUCT%20CLASSIFICATION%20STRATEGY.pdf Beide, K. M. (2003). QDI strategies. Retrieved from http://www.qdistrategies.com/whitepapers/TheArtofSegmentationRevealedbyBehavioralSegmentation.pdf Healey, M. (2008). What is branding? USA: Rockport Publishers. Kotler, P. & Lee, N. (2007). Marketing in the public sector. India: Pearson Education India. Larsen, N. (2010). Market segmentation - a framework for determining the right target customers. Retrieved from http://pure.au.dk/portal-asb-student/files/11462/BA.pdf Maria, S. A. & Ionela, C. R. (2009). 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Psychographic characteristics of the millennial generation: developing a market segmentation for use in the wine industry. Retrieved from https://scholarsbank.uoregon.edu/xmlui/bitstream/handle/1794/7809/2006-wright.pdf Read More