Importance of Good Marketing Strategy - Case Study Example

Case Study Analysis: Siemens’ Meeting Global and Local Needs” Student’s Name Institutional Affiliation I. Elements of Market Planning A. Marketing 4Ps Product: the company focuses on mainly on electrical and electronics products. Some of the notable products mentioned by the case include; Siemens toasters, train, traffic lights and, MRI scan. In overall, the firm manufactures products relating to the following business sectors within the United Kingdom; ICT, energy, healthcare, financial services, and lighting amongst others. Price: it is noted that prices for different Siemens’ related products embrace different strategies especially because of the differences witnessed in currency fluctuations. While it is easier to get cheaper Siemens supplies, the suppliers might not likely enjoy great length of expertise and high levels of services. Promotion: is the way for which products are marketed within the global consumer platforms. It is established that Siemens has a higher capacity to engage in media and broadcasting. A perfect example being the core competency the firm shares with BBC on a 10-years deal. Subsequently, in a bid to uplift their respective standards of service, Siemens engages in the employment of on-site contract managers in order to take care of customer-based relationships as well as technologies set in place. The effective customer relationship technique ensures that each of these customers’ immediate need is uniquely handled at any given moment in time so that solutions are customised at all times. Place: Siemens operate in more than 190 countries across the globe but has a main headquarter in Germany where strategic decisions are conducted and implemented. In the United Kingdom, the company boasts of another major headquarter with more than 100 offices. It is noted that there are approximately 30 businesses within the firm in UK and the figure is still increasing with due time B. Product Positioning This is another significant element of marketing plan that Siemens has employed extensively with the aim of establishing the perfect way of communicating their immediate products features to the target markets (Aaker, Brumbaugh, Grier, & Dick, 2000). The perfect communication model helps to showcase the product attributes to customers in relation to their needs, competitive pressures, easily-accessible communication platforms as well as carefully formulated fundamental messages. In the case study provided, it can be noted that one of the effective ways upon which the UK businesses position it is through the offering of top-quality services that improve on adding value to customers’ work. The company offers highly technical products with service-benefits added in, which in essence drives effective competitive advantages over other suppliers within the sector (Aaker et al, 2000). Consequently, the UK businesses have the freedom to make decisions on the best ways of meeting local needs. In fact, all of the employees in the UK share a similar customer culture; “think customer”, which clearly focuses on understanding customers needs and working tirelessly to solve them efficiently. Through the immediate global strategy; “Siemens One”, customers are allowed to call upon the different Siemens entities for assistance. This ensures that the firm enjoy a great deal of loyal customers hence cutting down on potential pressures (Guillaume & Greir, 2011). C. SWOT Analysis Strengths; the company enjoys a great level of product diversification with most of its UK-based activities cutting across the different sectors including; ICT, energy and lighting. This has the benefit of ensuring a steady flow of income as well as popularising the brand image. Weaknesses: the company’s globalisation strategy has resulted to challenges especially those related to sustaining efficient operations and contributes to its overall mission. Threats; the case identifies the possibility of currency fluctuation, which results from differences in pricing of supplies within different regions. Opportunities: it is established that the company has developed global centres, which serves the underlying specialist needs of the entire group. II. Target Marketing & Marketing Mix Target Marketing The company’s immediate target marketing strategy is diversified in nature. In fact, the company embraces a demographic or even socioeconomic market segmentation prowess in the sense that it avails different products to the market regardless of such social aspects as gender, age, income or even education (Jansen, Moore & Kathleen, 2013). UK-based Siemens has its products scattered through different sectors of the economy including, household items like toasters, trains as well as MRI scans that use Siemens advanced medical imaging technology. It is further noted that different business segments that include health service trusts, local authorities, government as well as its entire agencies all adopt Siemens-based expertise relating to ICT, healthcare and energy. Through this product diversification strategy and the use of demographics as a target marketing model, it can be seen that the firm continues to enjoy a great deal of turnover of more than £3B, which contributes a larger percentage of profits to the Group. Most notably, the activities of the company contribute immensely to the overall UK economy while at the same time offers a great deal of job opportunities within the economy. In essence, the company works in both manufacturing and tertiary sectors of the UK economy. It is also important to understand that UK Siemens manufactures and distributes products to other demographic regions, which clearly ascertains the fact that the firm does not confine to local markets (Jansen, Moore & Kathleen, 2013). A perfect example is when its traffic management systems that are produced in the UK are exported to numerous regions like China, Malaysia as well as Brazil. In 2005, the company’s overall exports contributed to 16% of total sales, which is a clear indication that its global target markets are efficient and reliable in the long term. Marketing Mix The company’s product is highly diversified in a way that has extended on its overall product line. The existing product has been set to meet the different customer demands. UK Siemens has effectively generated products that meet the expectations of the customer through efficient customisation process. It can be argued that since the company offers products to different UK economic sectors then it has already familiarised itself with what the customer needs (Learmonth, 2009). In relation to place, it can be noted that the firm has ensured to use different marketing platforms to reach its customers that penetrate through cross-national boundaries. Both the private and public sectors in the United Kingdom enjoy easier access to Siemens-branded products. Distribution is made effective and efficient through different suppliers, who are allowed to operate on different pricing strategies. UK Siemens’ pricing model is effective and profitable. This can be noted in the manner for which turnover has continued to increase over the years with both private and public entities seeking its products over time. Since 2005, the company has continued to enjoy significant portion of profits from its sales revenues, which is another indication of effective pricing mechanism in place. Customers tend to prefer the company’s products because it adds value to their work. The company seems to utilise technology for its promotion strategies. Most of the products are advertised through company websites and social network pages (Sheehan & Gleason, 2001). Consequently, it is engaged in intensive unpaid advertisements like formulation of seminars and events, whereby both private and public deals in relation to company’s product are executed. Both of these promotion strategies contribute significantly to the overall marketing mix that allows for profitability over the years. III. Importance of Good Marketing Strategy & Recommendations Marketing strategy sets out an effective and efficient plan needed for successful selling of products and services in a manner that allows a long term profitability growth and development (Slater, Hult & Olson, 2010). Most companies use an efficient marketing strategy as a brand’s road map since it provides direction to where focus should be directed as well as the perfect path to embrace in this long term journey (Slater, Hult & Olson, 2010). Such enormous and significantly positioned brands like Siemens adopt an effective marketing strategy in order to avail both products and services that will depict meaningful overall impact. Consequently, it should be noted that decisions made in relation to marketing mix is sourced from the overall marketing strategy and undergoes intensive articulation at different phases of growth and development (Theodosiou & Leonidou, 2003). Product marketing strategy is considered a significant and crucial section of an overall marketing mix. Intensive research indicates that such product elements as product design brand mix, customer service in both pre and after sales phases are important variables of product marketing strategies; an integral part of efficient marketing strategy (Theodosiou & Leonidou, 2003). Of particular interest to note, it is established that product design adaptation strategies was highly linked to a positive company’s overall performance. To meet up the objective of a better-performing company, it is established that companies should make strides to embrace customer-based product requirements especially for export- focuses businesses. As much as product diversification is deemed to be of great importance, product and service quality are some of the most notable determinants for perfect and highly-achievable performances. The international markets is well informed and fairly subtle in relation to product design and specifications hence this calls for companies to improve on product diversification strategy through implementation of innovativeness capability and prowess in the course of product generation and distribution (Eusebio, Andreu, & Belbeze, 2007). It therefore goes without saying the existing Siemens’ product line is well-developed and is subject to innovation since it focuses on modern processess of production. The products are also diversified and enjoy intensive access to different market regions due to their ability to link value addition to customers’ expectations and needs. Promotional marketing strategy is an element of marketing mix that researchers postulate as having a higher degree of effects especially in relation to increased sales and profits (Nassimbeni, 2001). It forms an effective platform to execute marketing campaigns that should counter competition. Through well-laid out advertisement, it is noted that companies can effectively inform, remind and even persuade customers, which would result to generation of more sales and profits in the long term. Siemens does not seem to uphold this element in its marketing plan despite the fact that advertising posits a higher chance needed for improved export-based performance. Taking into account that exports of manufactured goods amounted to more than 16 per cent of overall sales in 2005, UK Siemens should seek to engage in intensive advertising campaigns targeting international markets and audiences. Nassimbeni (2001) argues that firms that show lots of commitment to their immediate target audience should make sure to employ a higher level of advertising as opposed to those that portray lower commitment to their target markets. Moghaddam and Foroughi (2012) notes that efficient and effectiveness of a marketing mix strategy is closely associated with such aspects intensive attendance in fairs, catalogue issuance, advertisements on internet platform as well as direct marketing and would allow a local manager achieve a higher degree of export performances. Subsequently, intensive engagement in promotional activities helps to achieve even a higher market share. Taking a closer look at Siemens, the company does not provide a clear mechanism for promotional-based strategies. Only company websites has been allowed for immediate access with little evidence on aspects related to relationship marketing and direct marketing platforms. This presents a gap that should be fully explored by the UK-based management. In regards to place marketing strategy, the accessibility and on-time delivery are considered to be one of the most important aspects of overall marketing strategies and thus, a company that operates under an effective distribution method will likely enjoy enormous success in the international platforms (Calantone, Kim, Schmidt, & Cavusgil, 2006). Currently, UK Siemens seems to be enjoying a great deal of distribution channels, which operate under distinctive global strategies. For instance, customers have the opportunity to purchase products from different suppliers in the market and at different pricing while they also have the potential to access services for these products at any Siemens point under the “Siemens One” platform. The current intensive alterations within the international markets in relation to pricing models has resulted to marketers putting much emphasis on the aspect as an important facet in overall marketing strategy. UK Siemens seems to be operating under an effective and efficient pricing model, which has resulted to increased market share in such other international regions as Brazil, China and emerging markets like Malaysia. The company offers different products at different prices since dealers are allowed to charge own pricing depending on their expertise and market accessibility prowess. Notwithstanding, the company’s pricing model is efficient and effective given that an increase in sales turnover revenues results to a higher portion being translated to enormous profits (Cavusgil & Zou,1994). It is paramount to understand that UK Siemens seems to highly depend on workable relationship marketing strategies. For instance, it is noted that in a bid to improve on its existing standards of service, the firm has made sure to employ more deploy more on-site contract managers that are tasked with the responsibility of looking after the customer relationships as well as the underlying technological base. This form of customer-based relationship arrangement has allowed the company to meet their respective needs and expectations that fairly focuses on detailed interaction. UK Siemens should therefore improve on its relationship marketing strategies for a good number of reasons. First, engaging in intensive relationship management, the firm is able to improve on its current profitability position. The returns from an effective and efficient relationship model indicate those perfect customer relationships between firms and customers results to favourable quality products and a high degree of customer satisfaction. A higher degree of customer satisfaction is attained whenever the immediate customers’ needs and wants, which for this case rest with added value, are fairly comprehended and served in a much better fashion. In the long run, improved customer satisfaction and good quality results to immense customer retention, which is a component that has the ability to foster improved profitability. UK Siemens should ensure to attain a top notch competitive marketing strategy by way of improving on its long term financial performance prowess. Secondly, the ability to engage in effective relationship marketing will ensure that Siemens develops a favourable partnership platform. It is important to ascertain the argument that relationship marketing helps to promote the development of external partnerships, which has the capacity to oversee mega-marketing needs and expectations of an overall business (Barnes & Howlett, 1998). In developing a fostered relationship marketing strategy, UK Siemens will enjoy efficient management of a given set of external level of decisions with the firm customer relation. In particular, the capacity to develop and sustain deeper personal and social contacts through such modern networks as Facebook and Twitter is paramount to future ability to solve external decisions (Ogunmokun & Ng, 2004). Third, the ability to adopt a relationship-based technology framework will help UK Siemens address the need of the customer even more effectively. It is important to note that the adoption of an efficient relationship technology seeks to achieve a deeper and well-laid out customer insight, which is a crucial element necessary for the formulation of effective marketing strategies (Berthon, Leyland, Michael & Gunnar, 2003). Information-based technology assists a company to store and, also manipulate enormous levels of detailed information about existing customer base, which is also used extensively to create and implement a customer relationship management. It combines lots of analysis that include; loyalty, customer profile, sales and profitability evaluation. To achieve efficient relationship management, UK Siemens will need to adopt Database Marketing (DbM), which fosters the accessibility of customer’s information that further develops relevant strategies for overall marketing process (Berthon,et al,2003). Berthon, et al (2003) notes that the competitive advantages of adopting database marketing platform rest with the fact that it allow personalisation of communication between customers and management. In UK Siemens’ case the contract managers will have an easier time trying to create customised solution for each customer present using this technological feature. This can be coupled with a direct marketing provision in order to fully attract individual customers’ attention on matters related to their immediate needs and expectations through; a “One-to-One” marketing platform. Another important factor that relates to the adoption of a workable relationship marketing strategy rest with the fact that it plays a significant role in formulating and better still protect the emotional well-being of customers (Ogunmokun & Ng, 2004). This way, there is great decrease in the level of intensive dissatisfactions given that customers are made to feel special and an important stakeholder of the business. Another important recommendation for UK Siemens lies in the company making sure to define its promotional strategies within its overall marketing plan. There are a great number of marketing campaigns that it can effectively use to achieve results including advertising and direct marketing. Since the firm mainly relates with the local customer through a common culture then, the use of television advertisement will help a great deal to improve on the current locals sales. References Aaker, J., Brumbaugh, A, Grier, S, & Dick, T. (2000). "Non-target Markets and Viewer Distinctiveness: The Impact of Target Marketing on Advertising." Journal of Consumer Psychology (Lawrence Erlbaum Associates), 9(3), 127 Barnes J G & Howlett D M (1998). ‘Predictors of equity in relationships between service providers and retail customers’. International Journal of Bank Marketing, 16(1), 5-23. Berthon, P, Leyland F. P, Michael T E & Gunnar B. (2003). ‘Norms and power in marketing relationships: Alternative theories and empirical evidence’. Journal of Business Research, 56, 699-709 Calantone, R. J., Kim, D., Schmidt, J. B., & Cavusgil, S. T. (2006). 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