International Banking - Essay Example

INTERNATIONAL BANKING Introduction Companies and any other business organisations are often established with the aim of being successful, through attainment of its set goals and objectives. Creating effective marketing plans and sales strategies is important for companies in the process of creating their competitive advantages and market position. Marketing executives are expected to have a proper understanding of the industries in which their businesses operate into. This is important in the sense that the understanding helps in creating market oriented strategies and approaches. An effective marketing plan enables a business to identify those particular activities that it has to give priority in order to be successful (Mayrhofer 2012, 36). It is important to note that marketing strategies changes from one business to another depending on the dynamics in the particular industry. This underpins the fact that a proper study and analysis of the industry is necessary in the process of devising a company’s marketing strategy (Nig & Hn 2005, 32; Collins 2001, 18). This paper addresses the process of creating an effective marketing plan for Benson and Hedges, which is a cigarette company operating in the United kingdom and some other European countries. Benson and Hedges Benson and Hedges, a company that produces and sells cigarettes and other tobacco products is a headquartered in the United Kingdom. Benson and Hedges shares the tobacco industry alongside Japan Tobacco depending on the marketing environments in which they are located (Cox 2000, 27). In the United Kingdom, Benson and Hedges commands a large market share in the industry, with its production centres being located in the Northern Ireland in the town of Lisnafillan, Ballymena. This company has been in operations for many decades, commanding a significant market share, until the entry of different companies that have emerged to exploit many of the opportunities that still exist in this industry. However, it is important to note that this industry has been associated with various health implications to people that consume tobacco products (Sessa 2000, 24). This has seen much public health campaigns about the dangers of smoking, something that has highly affected the success and performance of most of the companies in the tobacco industry. It is therefore important o note that most of these companies have been undergoing through a change process in order to devise strategies that can make them successful and effective in the industry. In as much as some people have changed their preference for cigarettes and other tobacco products, there is still a good number of people that still use them, which makes these companies devise effective marketing plans to tap into these existing opportunities. Most companies have responded to public health campaigns and other systems by creating tobacco products that have few or no effects on people’s health in the process of attracting back the market that gave them success before the wake of these health concerns. It is important to note that the success of these companies can only be achieved through effective marketing skills. An effective marketing plan A marketing plan, as used by businesses in their marketing processes can be described as an extensive blueprint that outlines the organization’s general marketing actions and practices (Brassington & Pettitt 2003, 46). A marketing plan is what separates most successful companies and those that are not. However, it has to be understood that the success of the business’s marketing plan is not in its volume, but the effectiveness of the outlines strategies therein (Wood 2003, 25). A marketing plan can be best executed by focusing on marketing mix as outlines in its development. The marketing plan for any business can serve two important functions. First, it can be used as a strategy, where the business devises approaches it can use in reaching its customers and selling it products (Devinney 2010, 12). Secondly, it is used as a special tactic, whereby businesses use it in reaching new market and establishing their competitive advantages. In most companies, the process of strategies planning is done on annual basis as long as the business is still in existence. An effective marketing flow (Rosenzweig, 2001) The ultimate aim of a marketing plan in any company is to assist the company to grow and develop its particular brand awareness. It enables them create and consolidate its trust with its current customers in the market. It communicates what the business is doing at present and in the future as well as some of its unique features and characteristics (Pride & Ferrell 2008, 49). In the past decade, companies in the tobacco industry have diversified their marketing activities and changed their approach in production so that they produce more smokeless cigarettes with no health concerns. Developments in the Tobacco Industry This development has seen most of these companies increase their spending on the advertising and promotion in order to increase the competitiveness and success in the tobacco industry (Slater 2007, 442). The same has been the case at Benson and Hedges, a company that is under Philip Morris companies in the United Kingdom. In 1999, tobacco companies are said to have spent about $8.4 billion on promotional activities, with an additional $1.5 billion according to the United States Federal Trade Commission (FTC). By 2003, the total figures of the amounts spent by the tobacco companies had increased to double those in the previous years, teaching about $15.4 billion, this was attributed to the marketing strategies in these companies that ranged from price discounts to other diversified marketing strategies that have included online advertisements (Thabrany 2012, 52). After 2003, the marketing of tobacco products seemed to decline coupled with the economic downturns that had been witnessed in most parts of Europe. After facing decades of decline from various factors including the increased health concerns from tobacco products, the tobacco industry has began rising again, some that has been thought of as an important change process. According to the 2011 statistics from the FTC, many of the tobacco companies spent a total of $8.8 billion in the process of marketing their products. This means that they spent about $24 million daily in their promotional activities; this was a first increase in the total marketing of smokeless cigarettes after 2003. Developing an effective marketing strategy One of the important aspects in the development of the marketing plan in a business is knowing where it is headed. This is important because it gives information, which is necessary in making the company succeed in its approaches. It is important for business managers to understand that the marketing plan can be formal or informal, depending on the complexity of the business. Marketing managers are supposed to ensure that they have important information, which is essential in making the business plan (Blythe 2006, 26). For this reason, they are expected to have an effective understanding of the market including its trends. The business plan in any business cannot effectively deliver the set objectives unless the people who make it understand the market well. One of the most important elements in the making of the business plan is an effective understanding of its customers. In this case, a business will have to first products that are in line with the tastes and preferences of consumers then use strategies that effectively achieve the set goals. Additionally, an understanding of the business competitors and the competitive strategies is necessary in the development of the business plan. In this case, business marketers have to understand that the main aim of making the business is to counter their strategies and establish competitive advantages that can increase and consolidate their market share. It is detrimental for businesses to make their marketing plan without an effective understanding of these factors (Alserhan 2011, 40). This is because, the business environment keep on changing; for this reason, an understanding of these changes is important in the process of creating competitive strategies in the environment (Knight 2004, 9). The marketing plan, being an important tool in the development of these competitive strategies has to be made in consideration of these factors. The process of preparing an effective plan has to focus on four important aspects. Understanding the needs of the customer First, marketers in the business are supposed to have a clear focus and insight into the potential customers of the business. This is important because the business can realize the suitability of the products that it is intending to make; this is an important market-oriented approach to product development (Paliwoda 2008, 59). Companies that follow this alternative often manages to create competitive advantages because they often reduce wastages and maximizes their returns. An understanding of the needs of the market enables the business to develop strategies that can compare with those of the competitors. It makes the business to be respected, not just by the customers, but also all the other stakeholders that are necessary for the success of the business. For Benson and hedges, the changes being taken in the process of creating their competitive strategies in the highly dynamic industry can only come from their understanding of the current trends in the industry (Pierce, 2010, 621), especially with respect to legal changes, which have leaned more on the health impacts of the tobacco products to consumers. Identify target customers Targeting customers is very essential in the process of developing the company’s competitive strategies. Young people in many countries prefer most of the cigarettes and tobacco products; however, this is merely a subjective opinion. A company has to make a proper analysis of the market in order to identity the group of consumers that like using its products in the market (Loth 2004, 12). One of the advantages of identifying the particular target market is that it enables the business use promotional strategies that reaches this target market in the most effective and efficient manner. The business has to have a comprehensive description of the target market; this includes an understanding of the current trends in the target market. The advantage with such an understanding is that the marketing plan that the business will end up developing will effectively last for quite a long period. A marketing plan that can remain effective and reliable for a long time is important since the business will avoid the costs and time in developing a new one. It is important to understand that time is an important resource, which the business has to strive and save so that it can use it for various purposes. Identifying competitors and competitor strategies It is important for marketers in the business to understand that the business does not always exist in isolation. In any business environment, there will always be people offering similar products and services. These businesses will often compete for the same clients that the original business has been enjoying. In the process of creating their market share, they will often develop their strategies and approaches. An understanding of these factors is very important in creating the marketing plan for the business. An understanding of the competitors and their strategies in the business is very important because the business identifies the right mode of entry, especially if it is a new market. This understanding is helpful in the process of creating an effective marketing plan in regards to the 4Ps. It is important that a business does not assume that it is existing alone in the business. Creating an effective brand positioning statement Marketers, in the process of creating the marketing plan are supposed to understand that at the end of the day, their brand achieves the sales for the business (Coen 2009, 59). In this case, they have to create brand statement that explains the aims of the business to its customers. Customers will always want to be associated with businesses that communicate value and success. For this case, the business’ marketing plan should provide a successful and creatively done brand position statement. In the process of creating the brand position statement, it is important that the business focus on the needs of the customers (Luther 2001, 45). A good brand position is often single-minded, focusing on the needs of the customers in the market. The information about customer needs, tastes and preferences is obtained from the market analysis and research, which has to be done prior to the development of the marketing plan (Ananthan & Appannaiah 2010, 71). Promotional strategies After designing a successful marketing plan, it is important for the business to understand some of the promotional approaches and strategies that are important to its success (Jolivot 2008, 36). Currently, most business relies on technology in the process of creating their promotional processes as outlined in their marketing plans. Social media has been an important tool, not just in terms of communication and linking people together, but also in influencing businesses’ promotional campaigns (Sen 2008, 16). Many people in the world often use this tool in this information age. Therefore, successful marketing plans for these businesses are supposed to consider the effect of such technologies as well as how they can make good use of them. Benson and hedges, just like any other company has a duty to understand the current changes in the tobacco industry and devise marketing and other processes that can make these companies successful in their processes (Rugman & Hodgetts 2003, 18). It is important to note that the market is often full of opportunities, most of which can only be exploited by business that often develop effective and efficient strategies. Bibliography Ananthan, B., & Appannaiah, H. 2010. Business management (Rev. ed.). Himalaya Pub. House, Mumbai India. Alserhan, B. 2011. The principles of Islamic marketing. Gower, Farnham. Blythe, J. 2006. Marketing. SAGE Publications, London. Brassington, F., & Pettitt, S. 2003. Principles of marketing (3rd ed.). FT/Prentice Hall, Harlow, England. Coen, W. 2009. Marketing plan. John Wiley And Sons, S.l. Collins, J. 2001. Good to great: Why some companies make the leap--and others dont. Harper Business, New York, NY. 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