Classification and Selection of Marketing Strategies to Enter International Markets - Research Paper Example

Marketing Audit---The Bank of Cancer Research By Name of course Tutor University Department Table of Contents 1.0.Background Information 2 1.1.The Bank of Cancer Research: Overview 3 1.2.Marketing Audit Approach 3 2.0.Organisational Marketing Plan 4 2.1.The Bank of Cancer Market Strategy 4 2.2.Marketing Plan in Australia 6 2.3.Marketing Implementation for BCR 6 2.4.Bank of Cancer Research Marketing Mix 7 Figure 1: 4Ps Marketing Mix 7 2.5.Porters Six Strategies 10 Table 1: BCR’s Porter’s Six Strategies 11 2.6.Organisational Internal and External Factors 11 Political Environment 12 Economic Environment 12 Social Environment 12 Technological Environment 12 Legal Environment 13 3.0.Conclusion 13 References 14 1.0. Background Information 1.1. The Bank of Cancer Research: Overview The Bank of Cancer Research (BCR) is an organization that manages its operations just like any other banking institution but all available profits are used to fund cancer research within different paradigms (Fazeli and Taherikia 2016). The study takes the company’s marketing plans and product penetration in Australian market and how such approach allows cross-border operations and specifically, allowing customers to share in their joys of giving. This study therefore conceptualises the company’s information within its market mix, market Strategy and marketing Implementation. Recently studies have shown that BCR has formulated frameworks that are geared towards maximizing profits through application of different strategies in their areas of operations including production, research & development (R&D), total quality management (TQM) and human resources (HR) (Baker 2014). However, the company’s marketing environment (either internal or external) is essential to understand its marketing mix. 1.2. Marketing Audit Approach The process of marketing audit is concerned with the company’s marketing plan. According to Baker and Sinkula (2005), marketing audit cuts across issues such as market mix, market Strategy and marketing implementation and how a company’s product penetrates a given market. It there refers to objective assurance and independent process designed to look at the marketing environment of an organization so as to create an approach that add value and improve the organisation’s operations. We borrow this marketing audit approach to ascertain the extent to which BCR can accomplish its objectives and systematic approaches in marketing plan that steer control, risk management, and governance processes in liaison with other cancer institutions. The Bank of Cancer Research is already working in a competitive environment where its marketing audit needs to critically assess both internal and external factors within different theoretical framework. The examination of Bank of Cancer Research marketing position is framed across socio-cultural, economic, political, technological and natural environment conditions in Austral and the future forecast, taking case studies from other organisations across the border. Approaches such as The Cure for Cancer Within Our Lifetime or Global Financial Crisis calls for the organization-specific auditing technique which will be divided into parts (external factors, internal factors and theoretical framework to their marketing approach). Referring to the case study of BCR, this study looks at the organisation’s financial performance, and effectiveness of the marketing plan to its brand, pricing model, product design and competitiveness with niche operators. 2.0. Organisational Marketing Plan 2.1. The Bank of Cancer Market Strategy Marketing strategy is the approaches the company has adopted to penetrate the already competitive environment in Australia. Some of the marketing approach they use to understand their plan include establishing campaign approaches such as “Tell Someone Else” BCR has created loyal customers through what Finch et al. (2016) term as ‘understanding who are their buyers and marketing niche’ (p. 27). This approach continues to ensure that BCR is able to determine its competitiveness in already dynamic and sensitive Australian markets where profits are channeled to help others. Marketing strategies adopted by BCR through their customer relationship have propelled their performances over years. As a matter of evidence, marketing strategies constitute one of essential strategies amenable application when dealing with the model ‘beyond banking services’ (Grundey and Zaharia 2008). The company marketing strategy is based on “Investors will invest in BCR for a purpose beyond a financial return” which help them to have a platform where their development is driven by customer feedback. Recently, Koh (2015) argued that BCR adopted frameworks such as ‘improved cancer treatments for everyone in the world to share’ that did not only consolidate their customer base. In so doing, their approach has been based on enhancement of efficiency, improving quality, minimizing cost and increasing productivity so as to fulfill their customer specific requirements which in turn has improved their sales volume, market share, profitability, awareness, and brand preference by at least 30 percent in the Australian market. This approach follows jay Polonsky (2008) model of matrix of business operations organized to produce, plan and promote mega market services, goods and ideas needed for the satisfaction of identified customer needs. 2.2. Marketing Plan in Australia BCR has established their marketing plan on a well-structured marketing mix where they have developed slogans as their marketing tools they use to pursue its marketing objective in the Australian targeted market. The core to their marketing plan is the 4Ps and 7Ps have been conceptualized in the company’s overall position and importance of the marketing function (Fazeli and Taherikia 2016). One of the key operating principles of the company marketing mix is to meet specific group of signatories to be embedded within their ‘The Giving Pledge’ so as to have a financial ability to deal with the competitors. Additionally, Rossi and Chintagunta (2016) found that on such platform an organisation is able to have a stronger bargaining position with its marketing partners as well as upstream partners thus allowing it to leverage their cost of marketing. Currently, BCR has developed strong brand reputation and this can be attested to the fact that so far, it has enlisted 139 high-net-worth households who have pledged above $365 billion. 2.3. Marketing Implementation for BCR The process of marketing implementation is entirely dependent on competitors within Australia and as such, it is pegged on financial, capital, human, experience, relationships with key suppliers or customers (Fazeli and Taherikia 2016). The relationship between perceived values and marketing strategies used BCR is understood in terms of theories that shape marketing approaches they have taken. Taking a case of resource dependency theory, BCR has identified biases in marketing tools that they use to deal with competition as well as developing a strategy to use in marketing their products. This approach has helped the company to deal with pressure from competition and social groups in society in Australia. The firm's overall customer orientation in the implementation and marketing decisions are strongly affected by government regulations, legislation and social groups. This approach has been difficult in ensuring that the company deals with its close competitors such as the Breast Cancer Institute of Australia (BCIA). According to Fazeli and Taherikia (2016) the Australian Cancer Research Foundation the rival company reported sales growth of about 18% between 2013 and 2017 showing that for BCR to remain competitive they have to strategise how their customers will be influenced by their place or location of the product, quality of their product, pricing model and how their product is positioned when compared with other competing companies. 2.4. Bank of Cancer Research Marketing Mix Theoretical perspectives regarding marketing mix in BCT is multifaceted. The company’s implementation of profits fund cancer research looks at marketing mix as marketing model that entail a well-cordinated actions that are focused at reaching the company’s product services and deliveries of funds collected (Tedlow and Jones 2014). However, this assessment looks at the company’s marketing mix from the perspective of Kotler and Armstrong (2004) perspective. According to the authors, marketing mix is based on product, promotion, price and placement as shown in the figure below. Figure 1: 4Ps Marketing Mix BCR has continuously integrated marketing programmes to put into action Kotler and Armstrong (2004)’s 4Ps with an aim of obtaining strong position in their markets. Research studies such as Buckley and Casson (1999) have extensively analysed the organisation’s 4Ps in light of their recent activities. Beginning with product policy, the organization has taken this approach as a tool that helps them make decision when it comes to structure, services, size and the range of their products to the market. The recent campaigns that involved products such as, ‘The Cure for Cancer Within Our Lifetime’ and ‘Tell Someone Else’ was a rebranding that ensured the company obtains strong positioning on its areas of operations (Steenkamp 2017). Secondly, BCR constantly uses price policy as its marketing instrument to check on its index of social and economic reality. There is consensus among scholars that price policy remains as the only marketing mix variable that help organisations predict their profits (Solomon 2014). Contextualising this positon, BCR bases their pricing model on that they term as ‘Purpose Entity’ meaning that traditionally, they are taking cautions in their pricing as they are not entering into the bracket of ‘for-profit or not-for-profit.’ Based on their flexible pricing model BCR continue to establish itself as one of the strongest marketers. It is a marketing penetration strategy that has greatly helped the company to move from its functional model to what Solomon (2014) terms as a ‘product design model’ (p. 36), which has enabled it align its operations with current demands in the market. In order for BCR to compete to favourably in its marketing approach it has adopted ‘horizontal placement policy.’ According to Winston and Weinstein (2016), this is a situation where a company balances their marketing approach between consumers and producers and between supply and demand. BCR does this approach by creating presenting products that have purpose while people are banking and at the same time pay people as their peers. BCR has adopted elaborate mechanism that ensures promotion of its products. For instance, they have integrated profit differentiation theory to detail how they promote their product. According to the general understanding of the theory, when there are two identical products they the approach used to deal with the profits will differentiate the two products thus determining the purchase decision and promotional approaches the organization uses (Winston and Weinstein 2016). One of the products the company has promoted is donation of the profits generated from customers’ banking services. Through this product, the company has adopted different promotional components including approaching philanthropists with the idea that BCR as the bank is the entity, which derives their profits and cancer research being the cause of the process. This approach has helped the company to dictate marketing strategy through a well-developed strategy that persuades customers to take their products and services. Contrariwise, the organization has not ratified measures that will help it explore financial performance that in turn, helps it promote their products in the targeted markets. Additionally, promotional approach should not entirely lie on ‘philanthropists’ but should be seen as a process of systematic intelligence-collection using multifaceted tools such as SWOT analysis, market research, formal planning and portfolio analysis. This approach will help BCR to understand the best marketing option that will fit their ‘Purpose Entity’ approach. 2.5. Porters Six Strategies BBCR’s marketing audit can be well understood in terms of Porters six strategies. Market is no longer operating in a monopoly instead, BCR continue to face threats from different organisations that have been in competition for a piece of the market share (Zou and Cavusgil 2002). The interpretation of this research is that BCR needs to analyse a strong market approach that will ensure that its business model of ‘philanthropists’ or ‘Purpose Entity’ has leverage against potential competitors and at the same time sustainable in terms of market penetration. Porter (1986) developed specific generic strategies that are applicable in this case. This study has analysed and compared Porter’s model and BCR’s approach in the last four years and noted that BCR has been choosing its marketing strategy carefully so as to gain competitive advantage, increase its growth and capture market insights. The table below highlights Porter’s six strategies as captured in BCR marketing approaches. Table 1: BCR’s Porter’s Six Strategies Broad Cost Leader Focus Float low priced products Gain competitive advantage through low research and development (R&D) Broad Differentiation Focus Ability to develop product that has unique attributes that donors (customers) want. Defining their marketing niche (Sheth and Sisodia 2015). Cost Leader with a Product Lifecycle Focus Focus They have reliable services for their mainstream customers. Keep marketing and material cost to a minimum (Capsim 2013). Differentiation Strategy with a Product Lifecycle Focus Focus Gain competitive advantage with customer awareness (Smith et al. 2010). Niche Cost Leader Focus Focus on the traditional and low-end segments. Increase automation in marketing to improve margin Niche Differentiation Focus Focus on marketing awareness and quality. 2.6. Organisational Internal and External Factors Political Environment BCR is enjoying relatively fair political environment with government on deregulations as the key political issue affecting its marketing approach. Since the company targets Australia market, it is likely that it will enjoy regulated but liberal-capitalistic democracy, thus supporting its business model (Kotler et al. 2015). Economic Environment Unlike other markets where BCR has performed considerably poor, economic environment in Australia is different. The external economic factors are all positive with The Australian economy now more than 13 percent larger than in 2014-2016 (Winston and Weinstein 2016). Social Environment BCR is enjoying favourable social environment where as the country is committed to racial and ethnic inclusiveness in its fight against cancer. It is indeed for this reason that BCR is enjoying the pace of fiscal consolidation which balances the need for structural fiscal repair with the shorter term impact on the economy (Kotler et al. 2015). Technological Environment Based on this analysis, it is apparent that BCR is negatively affected by continued technological advancement thus marketing niche may be affected. Legal Environment Growing economy and increasing domestic consumption in Australia as facilitated favourable legal environment. For BCRr, this is a favourable market since one can trust legal regime due to strong and transparent governance system which is also coupled with business oriented insolvency regimes and regulations. 3.0. Conclusion As a point of conclusion, this analysis finds that BCR’s marketing auditing serves the purpose of reviewing and evaluating the organizational strengths and weaknesses in their specific functional areas of marketing. We realize that the organizational marketing approach serves different functions. First, it enables BCR to identify and evaluate relationship among different competitors thus understanding the environment that affects its business operations. However, we observe that for BCR to monitor its marketing operations and environment it has to manage its risks that include overreliance on ‘philanthropists’ and ‘Purpose Entity.’ Additionally, the organization should develop marketing specific strategic formula so as to improve its overall performance as it constantly needs to react to changes its business environment. References Baker, M. J. (2014). Marketing strategy and management. Palgrave Macmillan. Baker, W.E. and Sinkula, J.M., 2005. Environmental marketing strategy and firm performance: Effects on new product performance and market share. Journal of the academy of marketing science, 33(4), pp.461-475. Buckley, P.J. and Casson, M., 1999. A theory of international operations. 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