The Myth of Market Share - Assignment Example

Assignment Two and Assignment Three Name Institution Professor Course Date Assignment Two Staffing support Plan A staffing plan is termed as a framework that sets out to control and screen the costs of human capital while at the same time ensuring that there is a base to help in the decisions making process in the organizations (Armstrong & Greene 2007). Strategies Coaches and mentors make use of a number of strategies to motivate the employees and maintain to take an organization towards the productivity lane (Goldstein & Lee 2005). Therefore, companies need to make use of coaches and mentors who are honest with the employees and those who have interest in improving the situation in an organization. The strategies that Houzit can make use of include the setting up of goals and aim at rewarding the employees in instances when they perform exceptionally. By setting the goals, the employees will be provided with definite aspects to work on and this will have a potential of increasing the productivity in Hauzit. Through the use of coaches and mentors the goals created will be timely, specific, measurable, relevant and attainable. Rewards in this case will play an essential role in motivating the workers. As the employees at Houzit attain their goals and make improvements in respect to their performance and offer room for constructive criticism (Goldstein & Lee 2005). Resources The process that Houzit need to apply that is coaching and mentoring calls for a number of resources aimed at accomplishing the objectives and ensure that the operation is a successful one. The success of this process will be based on the effective use of the resources. One of the major resources that are needed is the human capital (Armstrong & Greene 2007). This is the most useful resource and this needs to be taken care of through effective coaching and mentoring. Another resource that is essential is money to ensure that the coaching and mentoring will take place without being interrupted. In addition to the above mentioned resources, time is another resource that will be used and every available time ought to be used in the most effective way. In this regard the resource based view will be used so as to assess both the tangible and intangible resources in the firm are being utilized in the most effective manner so as to achieve the anticipated marketing outcomes. Feedback Feedback is an essential aspect in all areas and in this regard employees need to be offered with feedback so as to know their performance and areas that they need to improve on as they try to achieve the stated goals and objectives. In this regard, the feedback will be offered through the use of various medium. For instance, the employees will be informed of the progress made and the level of achievement they have made through the use of memos and meetings. Through the meeting, they will be permitted to voice their opinions and the level of improvement that have made so far (Armstrong & Greene 2007). Thus, they will be aiming at achieving the sales levels and a great market share as proposed by the board of directors of Houzit. Performance The performance of Houzit need to be measured to asses if it is measuring up to what is expected of them. Through the performance the company will be aware of what aspects are making them to fail in attaining their goals and objectives. In relation to these aspects, the performance will be assessed at an individual and at a team level so as to assess the weaknesses (Chen & Hitt 2000). To ensure that the employees involved in attaining the objectives remains motivated their weaknesses will be communicated well and measures taken to ensure that they deal with their weaknesses and change them into strengths. To enhance the long-term performance of Houzit all aspects that will be identified as the main cause of poor performance will be dealt with in the most effective manner. For example, if there is need for more resources the resources will be offered to the marketing team to ensure that all the objectives are attained. Response to scenario 1 My one-on-one coaching with Marie will entail coaching and mentoring her on aspects related to confidence since she lacks some essential skills such as confidence required in making decisions. I will also coach and mentor her on the benefits of off loading issues to ensure that she perform her allocated duties well. I will also coach and mentor her on the importance of developing skills that she already possesses and mostly in her specialization area which is advertising. Through this she will have additional skills that will be essential in her future endeavors and as she takes up other responsibilities. I will also mentor her and ensure that she reads and acquire knowledge related to web design and web marketing since the attempts made to approach Tony on the issue has failed totally. My one-on-one coaching with Maria will also entail ensuring that she developed a fresh perspective and at the same time advice her to be seeking advice, suggestions and opinions from others who are already experienced. All this will be done in a favorable environment to ensure that she is comfortable and get as much as possible from the coaching and mentoring. Response to scenario 2 The performance of Tony is not put to expectation since it has been noted that he really avoids in-store visits. As a member of the marketing team he should be actively involved in the process. A major action that one could take to ensure that marketing outcomes continues to be achieved by ensuring that he adopts and make use of other forms of marketing. From the case study, it clearly evident that Tony only prefers making use of internet marketing. He needs to understand that even though internet marketing is currently been viewed as the future for marketing it fails to work if not used in collaboration with other methods (Shimizu 2014). Additionally, I would ensure that he shares his knowledge with other in the company and use a language that is easily understandable by others and undertake activities that are ethical and which are in line with the ethics standards outlined in the company (Kotler & Keller 2012). I would also ensure that Tony is informed that he should not make major decisions without consulting others in the higher management levels. This should mostly apply to aspects that may have an effect on the business and mostly in a negative manner. Assignment Three Marketing performance report Analysis Based on the latest store averages, it can be noted that the weekly sales of the 15 Brisbane stores has increased and currently it stands at $28,200 per week for each of the stores. This seems to be a great improvement since the expectation was 8.5% growth which meant that the stores needed to make $24,680 every week. Additionally, the marketing expenditure also seems to have increased by a great deal with internet marketing taking an extra amount than the already budgeted one. The extra expenditure in web marketing can be attributed to the fact that the company is currently in preparation for online merchandise sales which will take place during the nest marketing period. Thus, to enhance the sales of the online merchandise a lot need to be invested in web marketing as opposed to other marketing aspects to enhance the success of the project (Kotler & Keller 2012). This is also anchored on the believe that the marketing is in line with the trends in the industry since a great number of people are making use of the internet. Also in this regard, people in the company need to be enticed to make use of online platforms in promoting their products and this will be essential in creating and having a greater and solid market share with a growth that is controllable. Though companies need to grow their growth should be regulated at times since some fail is the growth takes place so rapidly. Therefore, employees at Houzit need to have time to adapt and get used to the change to enhance its sustainability (Shimizu 2014). KPIs A performance indicator also termed as key performance indicator (KPI) is termed as a kind of performance measurement. KPIs tend to evaluate the success of a company, for example, Houzit in the activities it engages in. at times success is repeated and periodic achievement of a number of levels of operational goal and in some instances success is defined on how much progress have been made towards the achievement of the strategic goals (Parmenter 2010). For that reason, coming up the correct KPI relies greatly on a clear and concise understanding of what is essential for Houzit. In this regard, there are a number of key performance indicators that will be essential for Houzit ion measuring their progress in attaining their marketing objectives in the most effective way and they include Increase in their sales revenue Market share and Cost of customer acquisition. Increase in their sales revenue The board of directors at Houzit has set a benchmark of an increase of the sales revenue by 8.5%. The increase in sales can be calculated by use of the growth figures in the sales divided by the sales made during the previous years (Kotler & Keller 2012). Market share A market share is termed as the percentage of an industry or the total sales in a market that is earned by a company over a certain period of time. In actual terms the market share of a company is mainly calculated by considering the sales of a company over a certain period of time and dividing it using the sales made in the industry in the same period of time (Farris, Phillip & David 2010). The metric is mainly used so as to offer a general idea in regard to the size of the company to their competitors and the market. In regard to Houzit, the board of directors has set the market share at 12%. Cost of customer acquisition The board of directors at Houzit has benchmarked 15% of the new sales that may be generated as the most appropriate customer acquisition cost. Customer acquisition costs are termed as the costs that are associated with convincing the consumers to make use of a service or buy a product (Chen & Hitt 2000). This cost is always incurred with the aim of convincing the potential customers. This cost is mainly inclusive of the product cost and costs that are involved in marketing, research as well as the accessibility costs. This is an essential business metric and thus it plays an essential role when it comes to calculating the value of the customers in the company. Through calculation of the customer valuation accompany can make decisions related to how much resources can e spent profitably on the customers. Thus, in general it assists a company to make decisions aimed at determining the worth of the customers in the company. Targets A major over-performance that can be noted is the high sales made in the stores. Based on the findings the average weekly sale for all the 15 Brisbane stored had growth to $28,200 per week in each of the store. This can be viewed as an over-performance since the expected sales was $24,680 per week in each of the stores. Another over-performance that is closely linked to the sales was the rate of growth that was expected to be 8.5% and this meant an increase in the market share. All this over-performances can be closely associated with effective marketing through the use of various marketing tools. In respect to these, the new targets needs to be set for the next 12-18 months and this will keep the marketers and other employees on the lookout and they will ensure that all their activities are aimed at achieving the new targets. Below are the new targets; Sales of the stores to increase by $2,000 from the previous ones Market share to increase by 5% from the previous ones and Ensured continued growth of the company. References Armstrong, J & Greene, C 2007, ‘Competitor-oriented Objectives: The Myth of Market Share’, International Journal of Business vol.12, no. 1, pp. 116–134. Chen, P & Hitt, L 2000, Switching Cost and Brand Loyalty in Electronic Markets: Evidence from On-line Retail Brokers, Proceedings of International Conference on Information Systems. Farris, P, Phillip, E & David, J 2010, Marketing Metrics: The Definitive Guide to Measuring Marketing Performance, Pearson Education, Inc, Upper Saddle River, New Jersey. Goldstein, D & Lee, Y 2005, ‘The rise of right-time marketing’, The Journal of Database Marketing & Customer Strategy Management vol. 12 , no. 3, pp. 212–225. Kotler, P & Keller, L 2012, Marketing Management, Pearson Education Limited, Upper Saddle River, New Jersey. Parmenter, D 2010, Key Performance Indicators (KPI): Developing, Implementing, and Using Winning KPIs, Wiley, New Jersey. Shimizu, K 2014, Advertising Theory and Strategies, Souseisha Book Company, Japan. Read More