The Importance of the Marketing Portfolio - Essay Example

Titus Rock Manickam Order No. 203320 19 February 2008 work Assessment 2-Portfolio Brief Portfolio Marketing is a wide activity. It is not confined to sales alone, but encompasses the entire spectrum of a company's activities. Its jurisdiction overshadows every part and parcel of a business activity from planning to production, advertising, sales and service. It is important and necessary for marketing department to liaise with every other department. This is because marketing has to get back to the respective departments with feedback from customers for various purposes such as rectification, modifications, future designs, etc. The importance of the marketing department's liaising with every other department could be gauged by its hold over the market and its need to keep its ears to the ground for every single bit of information that may make or mar the fortunes of the company's future business. The marketing portfolio therefore must represent every other activity in the company, apart from its own. It must have good hold over the total management information system so that the two-way communication system of information moving from top to bottom and from the bottom level to top level in the management hierarchy is clear, unambiguous and undiluted. Focus The marketing operational activity is primarily customer-oriented. It is not possible to stereotype customers or the market. Although the predominance of marketing over other departments does exist, it cannot abdicate its own distinct identity and responsibility and it must stay focused on its role as the frontrunner to secure maximum business from the total market pie. No other department has such colossal and strategic responsibility. If the marketing management is unable to focus on maintaining and improving upon its market share, those responsible are quickly replaced. Plan, Scope and Content We, that is, two colleagues and I, have been selected by Crown Manufacturing Company Limited, (CMCL), manufacturers and marketers of white goods, viz. refrigerators, washing machines, and wardrobes. The total number of temporary recruits is hundred broken up in teams of twos and threes to concentrate of several routes. Our job is to assist the existing sales force for the company's sales scheme of their products during the summer holidays. Our weekly remuneration is US$250 plus two percent commission on the basic price of every five pieces sold. The company has come up with a discount and replacement scheme and is confident of generating a very good sale. The customer is being offered brand new models with benefits of up to fifty percent discount on the basic price of any product in exchange for an old one in working condition. The scheme is being advertised on a grand scale through the electronic and print media. Retailers have been enthused with decorative window displays to herald the scheme. The company has fixed a target which is five times the number of goods sold in an average month. The Existing Sales Force The company has a staff of fifty sales executives under five sales managers each responsible for one product except for water filter and television for which there is one sales manager. The sales scheme is aimed at refrigerators, washing machines and wardrobes only. The temporary recruits of hundred sales assistants have been assigned to different sales executives. Their job is to receive customers, effect sale, and complete the data entry which basically covers information such as the customer's name, age, address, designation, choice of product model, and date or year of purchase of the old model, if available. The company's showroom is large enough to accommodate staff of hundred personnel in the mezzanine floor. It can accommodate another hundred in the building's first floor. Both the mezzanine and the first floors have enough space to receive hundred customers each at a time. Besides, five sales executives have been given the responsibility of attending to online enquiries and also receive orders with payments online. Each executive has been assigned one temporary recruit for assistance to manage additional load. Sales Strategy The promotion of refrigerators, washing machines and wardrobes has to be family oriented since the customer base for these items is predominantly the domestic sector. The advertisement targets the chief member of the family - the mother as the one in forefront with dad and the kids slightly in the background. All of them carry captivating smiles. Why They have just purchased a sleek, glistening refrigerator, washing machine or wardrobe. It is the new, additional member in the family! An advertisement has the two-fold obligation of creating a favorable atmosphere and disseminating salient features of the product and the scheme. The success of the entire scheme lies in the charm and attraction of the advertisement. The information in the advertisement must be attractive enough to solicit a second glance and realistic enough to beckon the informed reader or passerby. Being an old, well-established company, CMCL knows the ropes in handling advertisements to attract business. But it is showing signs of aging and not all managers are well-heeled to meet modern competition. Most of them are old-timers and prone to sycophancy and manipulations to curry favor with the top brass in the establishment. It must go to the credit of the top level management that they have perceived the anomaly and have begun to act before the rot sets in. Through a series of circulars by emails and hard copies pinned inside notice boards those in charge at different levels are warned of bloodshed if unable to achieve targets. By the time the scheme became operational, several heads had rolled and some reshuffled to insignificant posts to send strong signals that the top brass meant business. Day One The temporary recruits began their duty and the first two days which happened to be Thursday and Friday were spent on training to brief the newcomers about the products and sales policies and procedure of the company. On Monday, the scheme begins. There is nothing unusual in the sales office. The regular staff informs it is business as usual. No gate-crashing as a result of the much-hyped advertisements for the special seasonal scheme. At the close of the day, only a few more than the usual number of customers show up to make enquiries. Two more days pass. We temporary recruits have more or less settled down in our new environment and job schedule. The actual impact is felt on day four. About a dozen retailers have forwarded orders from two to five times the normal figure. Intimations have to be sent to the accounts and delivery departments, followed by physical verification of availability of the required goods and dispatch details, and receipt of payments. The work load begins to increase. Harried sales executives are on the edge. There is urgency and screaming for deliveries status could be heard at regular intervals. Some skip lunch. The warning of bloodshed is obviously prevalent in everybody's mind. The Second Week We are right into the middle of the special scheme and orders are pouring in, but not to the desired level. The management's strategy of limiting the scheme to one month and extending it to another month thereafter does not seem to be having the desired effect. Added to this shortfall, the service department has started feeling the pressure of more complaints consequent to increase in sales. And unlike the sales department, the service department does not enjoy the benefit of additional staff to bear the extra load. Periodically, some temporary recruits are loaned to service for a few days to cope with the extra pressure. At the end of the second week, only fifty percent of the desired target is achieved. On a quick review, it is found that many retailers' performance does not match the envisaged potential. Internally, the sales executives are getting bogged with non-sales issues like finding place to store the old models brought in exchange for the new ones. Tenders floated to find buyers for the old models have not generated enough response and those in touch with the company are demanding low prices defeating the purpose of the scheme. As a short term measure, the company rents space at a nearby warehouse to store the old models manned by a supervisor with an assistant. The Last Three Days Pep talk by the top level sales managers with retailers have helped reap more sales and retailers have performed better towards the last week of the month. However, the target is still a distant away by approximately thirty percent. Nonetheless, the sales charts show an encouraging upward trend, prompting the top brass to extend the scheme by another month. This is great and the temporary recruits are especially overjoyed that some of them may find permanent berth in the company's sales force. However, the challenge does not show any sign of mitigating. The target is doubled with the extension of the scheme by another month. Carrot and Stick Policy The fortunes are mixed for the sales team in the second month. There are expressions of relief in everyone's eyes. The target is achieved albeit with some prodding and help from the top brass who relaxed certain conditions and allowed the sales department greater leeway in deciding higher discounts for sales executives and retailers showing good performance. A few sales executives rose to the occasion and logged record sales achieving promotions and raise in salaries and perks. Many temporary recruits also performed brilliantly out of which some were offered permanent posts. All the other temporary assistants were assured placement in future schemes. The underperformers were told that the company is going to clean up the bottom-line. Many scrambled during the closing days of the second month to bridge the gap. Only a few were successful. Post-Scheme Review The two-months selling experience began as an opening to my career. My two colleagues and I did well, though we did not belong to the best performers' category. We took home as commission little over a thousand dollars each. But people tell me it is the experience and not the money that has served my purpose. Henceforth, my experience will help me achieve greater laurels. I have completed high school, and plan to continue studies in commerce and management. The experience I received during my two-month's stint has provided me the ideal background of how a company does marketing. I managed to get a secure a good understanding of how a product is marketed and also customer relations maintained to create a marketing niche of my own. The company works through coordination of several departments, each responsible for a specific role. I understood the pre-eminence of the marketing department and the marketing personnel. I also understood the importance of the marketing personnel and his or her communication and human relation skills. A marketing or sales person does not merely sell a product but also serves and a counselor and guide. He is a friend in the times of need. He carries an aura of benign goodwill and affluence within and outside the organization. I also understood the importance of the other departments. The role of the accounts, production, delivery and service departments reinforce the strength and achievements of the marketing department. To this effect, it is important to earn the goodwill and respect from members of these departments. On the last day the management felicitated the best performers and the department as a whole with a grand party. I felt nostalgic and emotional. Sometimes when I pass by, I do drop in to say hello to the company staff. Proforma A Purpose of Promotional Activitiy Name of Company Crown Manufacturing Company Limited Name/ description of promoted Product/ Service White goods: Refrigerators, Washing machines, Wardrobes. Is this a new or existing product/ service Existing product line and after sales services. What are the key product and or service attributes They are market leaders and reputed brand. Type of Marketing communications tool used (may be more than one) Advertisements, Window display, Road shows, etc. Key message of promotion Evidence Unique brand and market leader in white goods. Media Chosen (may be more than one) Television, newspapers and magazines, radio, internet. Assumed Customer segment(s) addressed Evidence The family unit, the newly wedded couple in particular. Assumed required Marketing Communications outcome Evidence Customer and dealers' feedback, complaints and redressal. Assumed required Marketing outcome Evidence Complete customer satisfaction, and achievement of sales targets. Proforma B Effectiveness of Promotional Activity Assumed required Marcoms outcome (summary from Form A) Customer enquiries, complaints, suggestions, and other general feedback and redressal. Assumed required Marketing outcome (summary from Form A) Achievement of sales targets. Type of research undertaken Research on marketing and operational activities involving white goods like refrigerators, washing machines, air-conditioners, etc. Purpose of research To get a first hand view of marketing schemes and operational activities that oversee the launch, execution and outcome of the marketing schemes. Conclusions drawn from the research Marketing is a professional activity that begins from the concept of the product to its designing, production, launch, sales and after sales service. Marketing requires thorough planning, coordination between the different departments, good understanding of the products, and time bound results. Post research review This review needs brainstorming sessions within the marketing department, customers and dealers feedback, comparisons with competition, technical advantages, problems and solutions, and additional features for future models. Pro-forma C The impact on the Organisations Operations as a result of the promotional activity Sales Activities Introduction of the new product model into the market through advertisements, sales outlets, window display, road shows, and seasonal promotional schemes. This is also the time to fix sales targets and periodical reviews on status of movement of goods. Follow up on enquiries from customers, retailers, receiving and executing orders, ensure achievement of daily targets, and availability of stock. Accounts, billing and receivables The departments of sales and accounts work in close coordination. Billing, payment receipts, and deliveries form the core activities of business. Customer/materials/information processing operation The customer is the end-user of the product. From the time the order is received to the time the product is delivered to the customer, there is a chain of activity that consists of movement of materials and information. The core departments involved in this movement of materials and information are production, sales, accounts, and the delivery department. Procurement of good/services and distribution of the same In the modern information age, production is largely outsourced. Call centres and Business Process Outsourcing (BPOs) are emerging all over the world. There are good alternatives to in-house production, and high quality goods are available at cheaper rates transcending geographical boundaries. One can make a call which is received from any corner of the world, and the goods made available from the farthest production unit and delivered at the customer's doorstep. Retail stock and stores management Retail stock and stores management is the underbelly of the whole marketing operation. In the absence of a good stock and stores, the whole marketing exercise can turn sour. It is important to maintain a good and balanced stock level, and also ensure inflow of fresh supplies as and when required for uninterrupted flow and movement of goods. Recruitment of additional/temporary resources Sometimes the sales activity could become very intense. This is possible during festival seasons when people are in the mood to buy and companies use gift and discount schemes to attract customers. In order to avoid backlog and breakdown of the operational system, companies recruit additional staff on temporary basis to manage huge surplus orders. This staff may comprise field personnel to attend customers and office manpower to augment existing staff. Design (for example; new product, new service, new process, new job) It is part of marketing strategy to constantly introduce new features in a fast moving product to attract customers and beat competition. This necessitates changes in design of a product to make it more robust and efficient. It is also possible to effect changes in processing and servicing strategies. Whether it is production, processing or servicing, changes in design are important aimed at improving products' utility and achieve customer satisfaction. Order fulfilment After the customer places the order, the process of the order reaches its logical end when delivery of the product is made to the customer to her complete satisfaction. Customer Service Support Service support is a very important and integral component of marketing. By service support, the company assures the customer that its responsibility does not end after the customer has got delivery of the product. The service department is as vital and necessary as any other department, viz. production, accounts, sales, etc. for a company's marketing strategy. Source: WebCT Student Orientation Centre, http://www.webct.com/oriented Read More