Marketing Strategies Issues - Case Study Example

Marketing Strategies Name Institution Executive Summary Education is becoming one of the drivers of economic growth in most countries. As a result, the students are becoming the hub of cushioning these developmental activities. Learning institutions needs not only to focus on the knowledge that they are imparting on the students but also their mental and physical fitness. Sporting activities play a crucial role in the physical and mental development of the students while in school considering the level of increasing coursework they are exposed to on the daily basis. With the intensive learning activities and movements, learning institutions need to provide physical fitness facilities that allow students relax their minds in form of ball games and gymnasium services. It is from such background that New England University through its business activities offer students community an opportunity to ensure that they are fit both mentally and physically for all educational activities. The university through its SportUNE exposes students to the ultramodern gymnasium facilities, which allow students to conduct physical exercises as a means of countering the day-to-day fatigue. Globally, sports and physical activities play significant role in promoting positive impacts on the physical and mental health of the students. However, more business entities are coming into the market to offer addition services to the students at some prescribed fees. Therefore, UNI Life needs to develop a market strategy that would assist its SportUNE face the rising level of competition. The research would be focusing on the various marketing strategies used by the pioneers and followers institutions. Introduction Many institutions are focusing on the students’ level of performance in relation to other institutions, an activity that is increasingly contributing to the deteriorating level of co-curricular activities. Besides, most students spend much of their time concentrating on the academic activities without paying much attention to the physical activities. Therefore, the institution is better placed to encourage the students to focus on the fitness programmes as well as a means of maintaining their physical and mental fitness at both school and home (Porter, 2008). Especially with the rising researches on the increasing health related issues among the students, the institution need to encourage the students to attend the facility for their fitness purposes. Moreover, several studies have been able to establish the positive relationship between the level of concentration of the students and performance. Students engaging in the sporting activities have higher chances of improving their performances. Physical activities and educational achievement of the students is increasing gaining interests with the profession of education and sport. As a result, many institutions are currently entering into the sporting industry to offer services related to physical fitness not only to the students alone, but also to the public. These entries are quite a threat to the businesses of the UNE Life especially to the students who might opt to visit the physical fitness centers outside the institution (Hoang, 2010). Therefore, it is important that SportUNE develop an effective and efficient marketing strategy that would ensure that it acquires a positive competitive advantage in the market. Establishing a brand might help in acquiring the competitive advantage. However, poor implementation of the marketing strategy might as well lead to the failure of the business. Furthermore, SportUNE would have to conduct a market research to establish some of the needs of the students in order to align its findings with organizational objectives. Organization activities should be aligned with the needs of the students to establish whether the services provided by the institution meets the needs of the students. The relevance of a pioneer strategy in relation to strategic market programs for the UNE Life With many businesses coming into the market, SportUNE is experiencing increasing level of competition. The competition is becoming stiffer especially with the unstainable marketing strategies put in place by the pioneer organizations preventing many businesses to enter into the industry. It is the aim of the institution to be the pioneer in the sporting industry while other follow; however, being the leader requires much more commitment than just setting up the marketing strategy. Moreover, pioneer institutions have been able to implement their marketing strategy in a manner that the services provided takes the needs of both the students and public into consideration. Change is inevitable in any market structure (University of New England, 2013). Pioneer institutions need to understand that in order to continue being the leader in the market, it is crucial to adjust to the ever-changing customers’ requirements. Besides, SportUNE needs to focus on offering the services to the students using modern facilities and well-trained personal to assist during the physical exercises. Using modern facilities would help prevent the number of students seeking fitness facilities in other organizations. With competitive advantage as the marketing strategy, the institution has the capacity of creative a positive value on the services that it offers. Moreover, the strategy would assist the institution while conducting market segmentation to identify the areas of interest of the students. Even though the number of students visiting the physical fitness facility might be few, SportUNE still needs to sustain itself especially with the growing competition. Every business always tries to outdo the others and push them out of the market in order to increase the service provision base. Consequently, when the market is becoming unsustainable to the pioneer institutions, they might opt to prevent losses and increasing competitions that they consider unfavorable to their activities. Some institutions, on the other hand, might use early withdrawal strategies as a means of avoiding unstainable competition in the market. Client attraction is important for any business; therefore, through developing a competitive marketing strategy, SportUNE would be competing for the available students who consider incorporation of the sporting activities into their studies important. Change4Life Sports Clubs in schools play a significant role in encouraging the students to attend facilities offering physical and mental fitness services. However, with competition from other sporting institutions operating outside the university like Sports Communication of Australia, SportUNE would have offer services that have the ability of achieving a positive taste and preference among the students. For meeting up to the standards of the pioneer strategies, the institution needs to focus on the innovative ideas, which could help enhance its performance within the sporting industry. Nevertheless, the identified innovative idea should remain relevant to the objective of the institution. An effective implementation of the marketing strategy would assist in identifying areas within the marketing plans require adjustment. Moreover, it is important to seek the views of the clients inform of feedback mechanism and incorporate the views into the marketing strategy. Client incorporation into the marketing strategy would help in identifying the market gaps (Reid & Bojanic, 2009). For example, most institutions do not offer training sessions especially on how to maintain a healthy living after vising the gymnasium. SportUNE might offer such services and use them as the competition base against other pioneers institutions. Nonetheless, any marketing strategy should utilize organizational resources in an effective way possible. Since the market is becoming more competitive with other competitors trying to push others out of the industry, SportUNE needs to be aggressive during implementation and offsetting the marketing strategies. Growth-market strategies for the pioneers and share-growth strategies for SportUNE as a follower The aim of ever business is to make profit. However, the concept of obtaining profitability differs from organization to another. Some institution focus of creating a competitive advantage through improving the quality of the services offered while focus on reduction on the cost of offering the services in a bid to attract more customers. Moreover, the leading companies are investing heavily in acquisition of ultramodern facilities to attract more clients especially those who consider using modern facilities. Ultramodern facilities offer efficient and reliable services though are quite costly to the follower institutions like SportUNE. If the institution is to ensure that it competes effectively with the pioneers, then it should focus on enhancing its services like provision of nutritional lessons to the students seeking physical fitness services. Although SportUNE might offer nutritional services based on promotional ground, later such services might be improved and offered at subsidized cost to attract more students. SportUNE could take advantage of the rising number of institutions advocating for the physical and mental fitness of the students. The leading organizations are also focusing on provision of the services to both the students and the public. Moreover, the leading organizations also use market segmentation method as a means of reaching more clients contrary to the marketing strategies used by the followers such as SportUNE, which only focus on their areas of operation (Shaw, 2012). In order to increase the market base and area of operation, SportUNE should consider offering services to the public as well even if not within the student environment, then the university should consider positioning some of its services closer to the people. The university could as well franchise some of the services offered by the SportUNE to organizations dealing in sporting activities in a bid to control also the number of public entering the institution. With few years of operation, the institution has been able to increase its level of creativity, the manner in which it offers its services, and created a competitive advantage that when properly implemented would assist cushioning organizational performance (Johnson & Richard, 2010). Additionally, the institution should continue with its quest for being the pioneer of the sporting activities in Australia since a little laxity would contribute to deterioration in the quality of services provided. To some extent, the number of students seeking services from SportUNE might increase to a level that the institution can no longer accommodate. In such cases, there is need to practice market share as a marketing strategy that would assist in extension of the services to other areas closer to the clients. Besides, some leading institutions use flanker brand as a method of marketing their services and effectively completely with others. Maintenance of competitive advantage in shakeout, mature, and declining markets With the changing technology, business entities must as well change their methods of operations. Technology plays a crucial role in aligning organizational objectives and the needs of the customers. SportUNE offer services to the clients using well-trained personnel and up to date ultramodern facilities customized to meet the needs of the clients. Therefore, a Product Life Cycle (PLC) play a crucial role in defining organizational marketing strategies and services offered since it has the ability to offer the institution an insight on the future areas that are likely to require organizational adjustment (Bakar & Connaughton, 2009). With clearly understanding of the stages of PLC, it might be easier create a sustainable competitive advantage since each stage defines the type of the marketing strategy that should be implemented. The stages involved in the PLC strategies include introduction, growth, shake-out, mature, and decline. Proper implementation of the PLC strategies would help design an effective and efficient marketing strategy for the institution. Although the level of competition is one rise within the industry, it is important that the chose marketing strategy remains relevant and create a sustainable competitive advantage. During the shake-out stage, firms within the sporting industry experiences higher levels of competition forcing weaker followers to quit the market. As a result, firms experience smaller growth margin. However, when there is a slight competition level, business tend to experience limited growth within the market due to adjustment in the marketing strategies and provision in more technical services (Kalra & Soberman, 2010). Since within the shake-out stage there is little growth, SportUNE should consider market segmentation as its marketing strategy in order to increase the base of operation. Besides, segmentation strategies might range from few to many with an aim of attracting more students. In order to attract more clients, the institution should consider adopting strategies that would attract students such cost reduction and offering promotional services. Clients are currently attracted to organizations offering quality services rather than the cost of rendering the services. However, the institution should avoid using price reduction technique as a method of creating a sustainable competitive advantage as such marketing strategies might affect negatively the organization and the market in the end. Mature stage of PLC is characterized by the slight growth in the market of the organization. However, the institutions considered the leaders in the market are the only enjoyers of the returns associated with the market structure. At the mature stage, institutions focus less on the promotional techniques and embrace measure that would help hold majority of the shares within the market. Even as the pioneers continue to enjoy the market through segmentation strategy, market penetration would guarantee service accessibility to clients considered to be lacking adequate information regarding the services offered by SportUNE. Considered as the final stage of the PLC strategy, decline stage presents numerous challenges to both the leaders and the followers. Within the stage, there is less market growth for all the firms operating within the sporting industry reflecting a greater reduction in the profitability of the industry. Unfortunately, at the decline stage most firms tend to exit the market due to numerous losses made and risks involved in the industry. Such kind of situation requires businesses to implement marketing strategies that would guarantee maximization in the profitability through ensure adequate measures are in place to secure the market share of the business (Cadogan, 2009). SportUNE needs to encourage other institutions within the industry and experiencing losses to quit the market and let those, which are better placed to become the profitable survivors. Nonetheless, the institutions should have the ability to use its competencies and market share advantages to create a competitive advantage. Strategies to serve new economy markets New economy relates to the organizational development through adoption of electronic commerce. Globally, technology is ever changing that businesses must keep up to the rising standards in order to attract more customers. Moreover, the youths are becoming the target for most of the businesses, hence the rising use of technology. For example, SportUNE uses its website to avail the information required by the clients thus saving much time and cost used to making calls and travels to make the inquiries. Besides, marketing is becoming easier, simple, and cost effective especially with the increasing number of social media sites, which offer platforms for posting ads for potential clients to view. Additionally, students who might not have time to attend the physical fitness facilities physically could attend such classes virtually at their convenience. The use of YouTube and Facebook offer the institution an opportunity to display some of its video online for clients to view practical sessions and chat directly to the institutional management (Thompson, Strickland & Gamble, 2008). The quality of the services tend to increase with the number of clients seeking such expertise. Therefore, electronic commerce plays a crucial role in delivering the quality of the service rather than the product. Consequently, there are software and hardware programmes used in developing business models. These models play a crucial role in simplifying the work done by the management especially those, which involve organizational decision-making process. Internet is increasingly offering a platform for networking for the clients. Through such networking, clients might inquire from the others who have utilized the services and based on such information, clients might either decide to seek the services or not (UNE Life, 2015). The level of interaction has never been so easy since the inception of the internet services. Moreover, technology offers the potential clients an easy method of accessing information they require at their own convenience. Designing organizational structures and marketing plans for the implementation of different competitive strategies for SportUNE Marketing plays an important part in determining the number of clients seeking services offered by the institution. However, the type of marketing strategy used within the business should be more accommodative and reflects organizational structure. Poor implementation of the marketing strategy that would offer a competitive advantage might in the end cause failure of the business considering the amount of resources invested but limited returns. Furthermore, the chosen marketing strategy should be integrated with organizational objectives, mission statement, and visions with aim of ensuring that the yielded and desired results are coherent. Every business has its marketing strategy that it believes would enhance its performance; nevertheless, these strategies should be different from that of the competitor. Employee engagement is also important as it ensures that there is reduction in the conflicts caused by varying interests of the implementers (Ananthan, Appannaiah, & Reddy, 2010). Through engagement, the organization might have an opportunity of exploiting all the views of the employees and incorporate them during the implementation process. A marketing plan and strategic implementation process require effective coordination. Organizational structure defines the formal system in which duties, behaviors, and attitude of the workers are controlled and coordinated. Through a well-established structure, the institution might find it easier to set the standards of implementing the marketing strategies. Therefore, organizational structure should be able to define organizational performance and criteria in which decision-making takes place. Since the aim of the business is to meet the ever-changing demands of the customers, every management structure should recognize the need for change on frequent basis. If SportUNE fails to align its marketing strategy with organizational structure, then probability of registering a fail in its performance are higher (Bacal, 2012). Critical analysis is important while developing organizational marketing plan. An effective marketing plan should indicate the relationship between organization structure and the objectives, which should be SMART in nature. SMART objectives are specific, measurable, achievable, realistic, and timetabled in nature. Role of marketing metrics and marketing audit in SportUNE Acquiring a competitive advantage depends on full implementation of the marketing strategy. However, it is crucial to note that the effectiveness goes beyond implementation and involves conducting a survey to establish whether the implemented strategy is yielding the desired results. Monitoring and evaluation of the marketing strategy would offer an opportunity to the organization to make adjustments and realign the business activities with the marketing strategy (Esty & Winston, 2006). SportUNE needs to engage proactively in marketing audits continuously in order to enhance the level of its profitability. Marketing audits should explore all the platforms used by the institution to reach more clients and avail information to them. Moreover, there is need to consider UNE Life’s website platform and how it presents various services offered by SportUNE and its marketing efforts. The acquired information might be used in adjusting the website and implementing marketing recommendations based on the heart felt needs of the customers. On the other hand, marketing metrics plays a crucial role in availing the numeric data required by the institution to evaluate its performance against organizational goals. Marketing metrics offers SportUNE an opportunity survey the services it offers within the market and measure brand awareness of the services offered. Whenever the organization monitors and analyzes marketing performance metrics, it tends to improve its competitive intelligence (Sen, 2008). Through the acquired results, it might be easier for the organization to assess its market strengths and weaknesses, which are often calculated, based on the marketing mix. Furthermore, the institution might use marketing metric method to demonstrate ways in which the market generates revenues and contributes to organizational goals. Conclusion In order to increase organizational performance, all business needs to consider implementing a marketing strategy that would not offer a competitive advantage but also ensure that the institution meets its desired goals. Change is one of the areas considered inevitable and with the ever-changing technology; the clients task businesses with the accountability by ensuring that their services are up to the required standards. Learning institutions are focusing on ensuring that the students participate in the sporting activities to ensure that they are fit physically and mentally for their daily activities at schools. Although, SportUNE need to realize that more businesses are coming into the sporting industry to offer similar services. As a result, competitive advantage as a marketing strategy would in ensuring that services offered by the institution meets the demands of the students. Reference Ananthan, B. R., Appannaiah, H. R., & Reddy, P. N. (2010). Business management. Mumbai [India: Himalaya Pub. House. Bacal, R. (2012). Managers guide to performance reviews. New York: McGraw-Hill. Bakar, H. A., & Connaughton, S. L. (2009). Relationships between Supervisory Communication and Commitment to Workgroup: A Multilevel Analysis Approach. International Journal of Strategic Communication, 52(6), 7413 Cadogan, J. W. (2009). Marketing strategy. London: SAGE. Esty, D. C., & Winston, A. S. (2006). Green to gold: How smart companies use environmental strategy to innovate, create value, and build competitive advantage. New Haven [Conn.: Yale University Press. Hoang, P. (2010). Business & management. Melton, Vic.: IBID Press. Johnson, G., & Richard, W. (2010). Competitive Strategy – Techniques for Analyzing Industries and Competitors, 3rd ed, London: Prentice Hall. Kalra, A., & Soberman, D. (2010). The forgotten side of marketing. Journal of Brand Management, 12(5), 106-110. Porter, M.E. (2008). The Five Competitive Forces That Shape Strategy. Harvard Business Review 86(1), 78–93. Reid, R.D., & Bojanic, D.C. (2009). Hospitality Marketing Management (5 ed.). John Wiley and Sons. Sen, M. (2008). Business management. Jaipur, India: Oxford Book Co. Shaw, E. (2012). Marketing strategy: From the origin of the concept to the development of a conceptual framework. Journal of Historical Research in Marketing, 4(1), 30–55. Thompson, A. A., Strickland, A. J., & Gamble, J. (2008). Crafting and executing strategy: The quest for competitive advantage: concepts and cases. Boston: McGraw-Hill/Irwin. UNE Life. (2015). UNE Life Official Website. Retrieved September 15th, 2015 from http://unelife.com.au/ University of New England (UNE). (2013). University of New England Annual Report 2013. Retrieved September 15th, 2015 from https://www.une.edu.au/__data/assets/pdf_file/0007/68650/2013-Narrative.pdf Read More