Basic Principles of the Marketing - Research Paper Example

Executive Summary Products are everywhere. One of the relevant examples of tangible product can be Australian Open Championship that offers its services for the purpose of satisfying entertaining needs of spectators. Factors of macroenvironmental can be political, economic, ecological and legislative situation in the country. The process of new product development is a complicated and extremely responsible strategic plan for every company that requires thorough and effective elaboration. Consumption of every product is a matter of choice, that is why every time when parents allow their kid to eat items of McDonald’s they are responsible for the health condition of the child. Despite all-facet market analyses, frequently consumer’s behavior can be quite surprising. In this respect, the trial-and-error approach is relevant to the strategy of the company which is able to overcome potential financial losses. Store-within-a-store strategy is an effective method of business running that helps to minimize costs and stimulate the level of demand for both parties. However, e-tailing is the future of entire commerce. Therefore, it is recommended for Bike World to choose this option as a powerful instrument of further development. Table of contents Introduction 4 Brand statement and product characteristics 4 Micro and macro environment of organizations 5 New-product development process 6 Advertising influence 7 Promotional mix 8 Business methods 9 Recommendations 10 Reference List 12 Introduction The main purpose of this report is to present basic principles of the marketing and propose the most effective recommendations to the strategies of different companies. The report studies cases of various famous companies and gives information concerning such important notions as brand realignment, macroclimate of organization, new-product development, advertising and promotional campaign. Brand statement and product characteristics According to Kotler et al. (2009), product can be everything that is suggested on the market and is aimed to attract people’s attention, encourage purchase and therefore gratify consumer’s needs (Kotler, 2009, p. 269).Relevant example of intangible product can be Australian Open Championship that offers its services for the purpose of satisfying entertaining needs of spectators. Its arrangement requires different kinds of assets, including financial, human and material resources. Sport equipment, food and beverages for cafeterias, souvenirs play the role of tangible assets, meanwhile administrative and maintenance staff plays the role of human resources. Visitors buy tickets for the Championship, therefore this event has profit basis along with the social goal to develop sport around the country. Tennis Australia considers that the more people enroll in clubs, the more skillful and distinguished players can be trained and stand out. This will increase Australia’s chances to win awards on world championships, improve state’s reputation and attain international recognition of the country. Tennis Australia strives for raising people’s interest and attraction their attention to sport activities. Watching professional players, potential consumers are prone to follow their examples and become tennis players later on by themselves. Australian Open Championship can be considered as a brand due to its main purpose to promote tennis. Its biggest value is that people gets closer to sport events and later on become more interest in it. Brand statement of Tennis Australia can not be considered as useful one in a full way because, in my opinion, it does not display all the urgency and importance of organization’s mission. Brand statement should be more profound and all-embracing, so that potential consumers have a clear presentiment about company’s direction and promotion campaign. Success of brand realignment can be measured with the help of increased number of people who enroll in clubs after realignment. Micro and macro environment of organizations The main participants of microclimate of air travel industry are competitors; companies that deliver raw materials; suppliers of integrated products; partners and distributors. For instance, if the prices for raw materials increase, the total cost of airplane grows also, therefore airlines which use modern airplanes will increase prices of tickets for preventing a situation of loosing additional profits. Factors of macroenvironmental can be political, economic, ecological and legislative situation in the country. If the level of economic development in specific country drops, this decreases profits of population, who consequently due to lower salary will prefer less expensive method of transportation substituting jets for trains or buses. Decreased level of demand will influence on air industry’s profits. Finally, airlines will be compelled to review price policies for affecting ticket sales. There are several factors that can influence the increase in air travel in Asia, such as price-cutting along with flexible discount policy, package of additional services, such as free of charge hand cream or fragrance, increase of personal space for passengers and new option of Singapore Airline when panel that separates two beds can be easily removed. Improved services with higher quality may attract more passengers and benefit the level of demand. Frequently, for people who fly a lot, gradually a price becomes less prioritized because such passengers start to cherish personal comfort more than financial benefits. It is well-known that aviation causes significant negative effect on environment, therefore it is recommended to use modern technologies that allow controlling emissions and facilitate their reduction. Also, a lot of scientists suggest switching to alternative fuel that is less dangerous for milieu. In addition, currently some airlines charge passengers for carbon emissions so that any extra payment can be used for obtaining new technologies that are more favorable for ecology. New-product development process Despite the high significance of every stage of new-product development process, it can be claimed that sometimes on practice companies are prone to overlap or unite some phases in one for speeding up a new-product launching. Hence, companies prefer getting feedback from customers not on the second stage but during testing phase right before the mass commercialization. However, managerial staff makes such decisions at its own peril. The simplification of the new-product development can be efficacious in case there is no need in specific phases. For example, if the company wants to launch a product, which is already familiar to potential consumers from competitor’s assortment. In fact, the product can be considered as a new for the technological process and production string of this specific company but in case its prototypes are already exist on the market, therefore the company may predict potential consumers; reaction that is why the process of receiving feedback can be eliminated. In my opinion, each beer manufacturer should propose at least four basic flavors, such as lager, porter, stout and ale. The most popular brands in my local region are Victoria Bitter, Fosters, Tooheys, Carlton Draught and Coopers. A small micro-brewery such as Five Islands can compete in such a marketplace with the help of offering consumers new extraordinary flavors pointing at healthy side of the product and declining any preservatives. It can be profitable to launch beer with a cloves or cinnamon flavor which should be positively appraised by females. For being able to expand the market, Five Islands should make a research of local region and conduct a survey that will help to study consumers' preferences. Defining preferred flavor should be followed by wide-scale advertising campaign with an active participation of local celebrities. Advertising influence Consumption of every product is a matter of choice. Taking into account the fact that children can not adequately evaluate all the consequences of the choice of fast food, therefore such decisions should be made by their parents, who are responsible for the health condition of the child. McDonald’s positions itself as an active player of social arena being involved in charities, youth sport and different world-wide events. As the founder of the company, Ray Kroc, states, “McDonald’s is a people business”. The company organizes annual high school basketball games for the aim of charity and pays scholarships for students based on their academic achievements. The company facilitates development of agriculture and fisheries, also it cooperates with GreenPeace. McDonald’s encourages people with sufficient business experience to set up its stores and become franchisee, so the company strives to develop business all over the world and get benefits out of it. The company suggests contacting its dietitians for the consultation. To improve eating habits of children, it is recommended to use famous brands, such as McDonald’s, to propagandize free of preservatives food items. Also, it is necessary to diversify menu with products of vegetable diet and realign advertising campaign highlighting healthy eating habits. In addition, each company should strive to reduce preservatives added to the most popular food items. There is no need to ban advertising of healthy food products, which can be even effective for improving eating habits of children. It is important to limit and control ads of unhealthy food during children’s viewing hours. It is essential to find a way which will draw children’s attention to the ingredients listed on product’s label. This will educate kids and encourage them to think about own health. Consequently, in the future Australian fast food industry will be redirected to more healthy food items. Promotional mix Despite all-facet market analyses, frequently consumer’s behavior can be quite surprising. In this respect, the trial-and-error approach is relevant to the strategy of the company which is able to overcome potential financial losses. Mentioned approach enriches the company with valuable experience which is a powerful factor in competitive activity. Tropic Spring Water used miscellaneous promotional methods. However, its advertising campaign should be strengthened with leaflets dispensed in the places of mass concentration of people. Advertising on local radio stations and placards in supermarkets could be extremely effective. In addition to free samples, the company could provide the flexible policy of discounts. Hence, a good motivator could be accumulative lifetime discount, which should be depended on the quantity of purchased bottles. This approach will encourage customer’s loyalty. The company could contact the customers over the phone and provide necessary information in addition to door-to-door canvassing. Moreover, returnees could be motivated with small gifts, such as glasses or jugs. The company’s salary policy with hourly rate and commission for new customers is considered to be effective. However, it is recommended to provide bonuses for specific years of service. This will reduce fluctuation of personnel and keep successful employees within the company, who will try to succeed even more. Also to the worker who attracts the biggest number of new customers by the end of the month the company may present extra rate or reward with any sort of material gifts, such as bag or t-shirt. No matter what motivation the company chooses it is important to hire active students and inexperienced youth instead of professional salesmen who frequently are not stimulated and encouraged to benefit company’s success as younger representatives that strive to gain skills and required knowledge for making increasing the company’s profits and reputation. Business methods Store-within-a-store strategy is an effective method of business running that helps to minimize costs and stimulate the level of demand for both parties. The most common examples of the stores that prefer such strategy can be drug store and post office, food store and store with cigars or shoe store and store of bags. All these goods and services are able to influence on the sales of other products. Hence, consumers willing to select shoes may also buy bags as soon as the offered products are so near to each other. And taking into account that shoes and bag should match due to fashion, demand for shoes will affect demand for bags and vice versa. The most possible areas of disputes between two retailers using the store-within-a-store strategy are the following: 1. Location of the stores; 2. Territory used by each of the store; 3. Design; 4. Warehouse’s usage; 5. Advertising instruments; 6. Rental fees; 7. Working hours; 8. Working schedule on holidays; 9. Insurance; 10. Security matter. Official signing of the contract with clarification of mentioned queries can significantly help to minimize all possible conflicts. A great alternative to store-within-a-store strategy can be opening of online store, which is able to eliminate rental costs of office, insurance and security fee. It helps to reach a wide audience all over the world. There is no need to hire professional salesmen or spend money for training. Nowadays e-tailing is getting more popular. Companies that practice e-business are Dick’s Sporting Goods, Sports Authority, Modell’s Sporting Goods, Dunham’s Sports, Al’s Sports, Sport Chalet, Hibbett Sports, Rebel Sport, Samba Sports Australia and others. E-tailing is the future of entire commerce. Therefore, it is recommended for Bike World to choose this option as a powerful instrument of further development. Recommendations Consequently, analyzing aforementioned information, it is important to highlight the main recommendations, which are the following: use modern technologies that allow controlling emissions and facilitate their reduction; switch to alternative fuel that is less dangerous for milieu; make a research of local region and conduct a survey during the strategy of expansion; use famous brands to improve eating habits of consumers; reduce advertising campaign of unhealthy food, modify menu and propagandize vegetable diet; diversify advertising campaign with radio ads and placards; door-to-door canvassing combine with phone calls to potential consumers and flexible policy of discounts; provide extra bonuses and gifts for successful sellers; open online store as a powerful method of business. Reference List Kotler, P., Adams, S., Denize, S., & Armstrong, G. (2009). Principles of Marketing. Australia: Prentice Hall. Read More