Strategic Marketing Management as the Future of Business - Essay Example

? Contemporary Issues in Marketing Introduction The foundation of any marketing strategy is on the pillars of marketing mix. The strategy of a brand is established in a structured and systematic manner by the use of marketing mix. Through the mix the marketer is able to create a link with the targeted group. Marketing mix management deals with matching of resources of the organization with largely profitable marketing prospects (Ramesh, 2008; Koekemoer, 2004). The main aim of the marketing manager is to present the marketing mix to the customers or the potential customers as a coordinated entity. Though the customers perceive the whole thing as a single offering but actually customers reacts differently to each element of the marketing mix. If each part of the marketing mix acts differently and contradicts each other, then it creates an ambiguous effect that makes the customers behave in a confused manner and they tend to purchase product from other companies who have defined brands (Foxall, 1981). The method of marketing mix is used by the marketing manager to produce optimal response in the target market. By creating a perfect blend of the marketing mix elements such that they are utilized in an optimum way. All the elements in the marketing mix are controllable variable and can be altered to meet the need of the target market and the environment. Hence marketing mix is most useful tool to design the strategy and achieve success in the target market (Bootwala, Lawrence and Mali, 2009; Botha, Bothma and Brink, 2005). This study focuses on the use of the marketing tool for a restaurant chain in London that aims to generate a positive experience for the customers. Marketing Mix for the service chain The marketing mix for the service industry deals with the 7P’s like product, price, place, promotion, people, process and physical evidence. Product The package or product in the service industry is seen as a bundle of benefits and features, which has a close relevance to the target market. This makes it important to develop the service product or the benefit package to meet the expectation of the customer. The products offered by a restaurant can be classified into five levels like core benefits, basic product, expected product, augmented product and potential product. Core benefit is the fundamental service or benefit that the customer is buying. Basic product indicates the basic functional attributes of the product that is offered by the service provider. Expected product is the attributes that are normally expected by the customers. Augmented product indicates the facilities or services that are provided by going beyond the expectations of the customers. Potential product are those that are created by innovation and distinguishes the service provider from others operating in the market (Srinivasan, 2012). In case of the restaurant chain the core benefit will be the taste of the food and the Italian cuisine in which it specialises. Studies have shown that eating habit of the people of London has undergone dramatic changes due to the opening of restaurants of diverse tastes specially French, German, Italian, Australian etc (White, 2011). The basic product will be foods and drinks of diverse origin and taste. The expected products that the restaurant offers is cleanliness and good ambience that is perfect for family and official dining. Augmented services would include just in time services, aroma and music. The potential product that would make the restaurant most distinguishing is the Italian food and some dietary foods; since people of London are now getting more and more diet concerned and health conscious (Wheelock, 1997). Price Competitive pricing should be done in order to be acceptable to the customers. It is the general tendency of the customers to link the price with the product or services offered by the organization. In simple words it indicates that the pricing of any product or services is largely influenced by the quality perceived by the customers. The pricing of the service should be set as such that it handles the following issues like demand fluctuation, tangibility, quality, competitors strategy and product life cycle. The fluctuation of demand indicates that use of service by the customers should be done immediately instead of making it an inventory. The price of the service offered must be based on physical features so that the customers can recognize the cost (Srinivasan, 2012). In case of the restaurant some quality addition should be there so that the customer feels that the service worth money. The market competition should be also considered while deciding on the pricing. The competitor’s strategy and the product life cycle should also be considered while deciding on the price. The pricing for the food articles will be done keeping the income level of the target market in mind. At the same time the restaurant will also offer some combo that are more cheaper, in order to attract the middle income group. Moreover London is a place where there is something for everyone to eat. So competition is quite high, which makes pricing and quality as the attracting factor. Place Services are not tangible so they neither can be transported nor can be stored or inventoried. The distribution channel used for marketing the product cannot be used for the purpose of service. Hence services cannot be separated from the selling of product. The place where the product or service is offered provides a connection between the customer and the service provider (Srinivasan, 2012). The places play a key role in case of restaurant. London has various places where different types of restaurants are there. Placing the restaurant to a strategic location is a major job so that it is easily accessible to the people. Ample connectivity through various means should be also there. Notting Hill, Hoxton, Edgeware Road and Dalston are some of the places where the restaurant can open its outlet. Promotion In case of service customers are seen to prefer to lean more personal information regarding the service or the product. They are unlikely to go for buying if they do not have adequate information. Sometimes it is important to convert intangible facets of the services to tangible through the medium of proper communication. This can be achieved best through proper promotional strategies. Through promotion the restaurant can develop a personal relationship with the customers, which in turn will help the firm to create preference and satisfaction amongst the customers. In order to win the confidence of the customers the service provider must make sincere, honest and feeling of competent service on the prospective customers. Indirect selling can be used as a tool for promotion that would create demand for the service. Customization and packaging of service is also a good way to do promotion (Srinivasan, 2012). For promotion the organization has planned to go for advertisements in the local channel on television during the prime time when family are more likely to watch. The restaurant will be using its event management, community relations and corporate programs to promote the services offered. They would be providing food to numerous corporate programs and various other events that would not only increase their popularity but also spread word of mouth that would create recognition for the company. Physical Evidence The physical evidence of the company is signified by the facilities, physical environment and atmosphere. The physical evidence for a service can be both essential and peripheral. The evidences that are peripheral are the exterior of the building, layout, colour, furniture used, cash memo etc, the part of the services that are having very low value as compared to the core services that are offered (Srinivasan, 2012). The essential evidences for the restaurant are the design, ambience and social factor of the outlet. The design signifies the architecture and other functional dimensions that provide comfort to the customers. Ambience on the other hand signifies the air quality, aroma and air circulation; in simple words the feel of the store. Social factor also plays important role like the appearance and behaviour of the employees offering the service. Proper measures will be taken to ensure all these. Certain standards will be given to the employees directly dealing with the customers. People The services is offered to the customers are provided by the employees of the organization. This makes it important for the firm to first market the service to the employees so that they are effectively delivered to the customers. Since the employees are the main contact person to the customers so the service that is going to be delivered should be first appreciated by them before getting it delivered (Srinivasan, 2012). To ensure this the restaurant chain has centralised training and development unit that would deliver proper training. The new selected candidates are also undergone rigorous training to ensure that the quality standard in service is maintained. Process Process management is the issue that addresses the consistency in quality and availability or services. This issue starts from operations planning, process control and planning, scheduling, inventory control and planning, operation planning, quality control to forecasting (Srinivasan, 2012). In a restaurant that deals with middle and higher middle class, maintaining quality is of great importance. To maintain quality in service and product every process involved in the creation and delivery needs to work in sync. At the same time the employees who are directly dealing with the customers should be also working with utmost dedication. To ensure that every process is working properly the store manager and operation managers are hired who coordinates and ensures that all the processes are running smoothly. Target Market The success of the restaurant depends upon how well the organization caters to the wants and requirement of the target market. Target market is defined as the specific group of customers towards whom the marketing effort of the firm is directed (Pride and Ferrell, 2010). It is selected as a part of the overall market. Selection of a well defined target market is crucial for the creation of a successful marketing strategy. If the marketing effort is designed for a wrong target market it is creates disaster for the business. By concentrating on the potential target market the firm will be able to use its resources efficiently (Gitman and McDaniel, 2008). The target market can be recognised well once the customer base is defined as tightly as possible and be clear in describing the characteristics of the customers. This can be done by defining the target market both qualitatively and quantitatively. Income, age, geography, customer needs, buying patter and product type are some of the factors that effect in classification and segmentation of the target market. The characteristics that help in defining the target market are Customer type, customer demographic, geographical location of the market and customer motivation (Fiore, 2005). Customer Type For defining the target market the type of customer is segregated into following types of customers like convenience shoppers, window shoppers, brand name shoppers and bargain shoppers. Convenience shoppers are those who look for convenience and want to save time. They are primarily impulse shoppers. For these customers convenience is much more important than price. The window shoppers are those customers who devote more time for shopping. To reach to a final decision they collect as much information as possible and consider them critically. Brand name shoppers are those who are attracted by the brand name of the company and brand conscious while shopping. Bargain shoppers are more interested in looking for good deals. They either buy products or services at discounts or keen to compare price and then buy at a lowest price (Fiore, 2005). In case of the restaurant chain the business will look to target the convenience shopper, bargain shoppers and window shopper. The delivery of the service and the dishes will be at the lowest possible time as compared to other restaurant, which will attract the convenient shoppers. The restaurant provides “combo offers” which are lower in price than if bought individually. This combo offers are both for smaller and larger consumption like for starters and for main course. This would attract the bargain shoppers. The customer who are looking for the description of ingredients and other information related to the dishes, for them the menu cards are prepared such that they provide all the information regarding the preparation. The restaurant also has separate personnel who will explain the dish in details and help the customers in choosing the right dish as per their choice and preferences. Customer Demographics The demographics of the customers can be segregated into two parts like consumer customers and business customers. The demographic traits that the company wants to serve depend upon the type of customers to whom the service provider wants to serve. If the business is targeting to private customers then the demographic traits like gender, occupation, income, ethnicity, education and marital status should be considered. The disposable income of the customers should also be considered that they might spend on the product and services. Of it is business customers then the characteristics like type of industry, type of products, number of employees and type of organization like private or public should be considered (Fiore, 2005; Walker, 2007). In case of the restaurant chain the customer are both private and business customers. The restaurant has separate banquet hall in which official parties may be held. But that requires a prior booking and setting of the menu. In private customer all types of customers of all age from the middle or higher income group are catered. All the customers coming to the restaurant are welcomed irrespective of their ethnicity, age, gender or education. The main motto of the restaurant is to serve quality dishes at reasonable price. Geographical Location The geographical location of the target customers is also important to devise the proper sales and promotional strategy. The geographical location also helps in deciding which customers are easily reachable and what are their choice and preferences (Fiore, 2005). The restaurant will start its business in London as an Italian restaurant. As the trends of London suggests that London had a large number of Italian Cafe who grew bigger and their menu were more inclined to the English dishes. The reason was that freshness was an important aspect of the Italian gastronomy but fresh ingredients for the Italian dishes were harder to get in London, which made most of the restaurant to adapt standardised menu (Oxford Symposium, 1983). But the speciality of this restaurant is that they serve authentic Italian dishes that are prepared from fresh ingredients. Those who like to go for English taste for them some special dishes with English taste are also available. Customer motivation The motive of the customers behind consumption of product or service is also the deciding factor for the target market. Before targeting the market the organization should also see which motives they are going to satisfy by the product or service of the organization (Fiore, 2005). The main motivation of the customer that the restaurant is going to satisfy is their Thirst for authentic Italian taste. The customers who are lovers of Italian cuisine will go for this restaurant. Conclusion The main idea behind opening this restaurant was to give the people of London the taste of authentic Italian cuisine. Since the restaurant is new and does not have a brand name so it mainly aims to provide the customer with ultimate satisfaction whether it is through price or taste or quality or ambience or convenience or service quality. The business is targeting the customers of middle and higher class people may be family or business customer or individual. The ultimate aim of the restaurant is to make a place in the heart of the customers so that they visit again and again. 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