Principles of Marketing Management - Assignment Example

Principles of Marketing Management Table of Content Key Assessment Criteria 11 Introduction Anderson Marine Construction is a seeded builder of boats and yachts both medium sized and high performance ones. The company is now facing a tougher market time due to a major down turn in the industry. On the suggestion of the consultant the company is looking at marketing smaller boats which would be moving in larger numbers and might require a totally different approach compared to what is happening now. They are inclined to sell more and the characteristics of the clients who will be buying these boats are also expected to be different. There is a larger number of competitors who vie for the orders from these customers. The customers are also price conscious and many times they do not wait for a longer period to pick up the boat. Secondly, the customers might not be as knowledgeable as the ones who were there for the larger boats. This means that the company has to educate the buyers on how to use their boats in addition to giving them appropriate maintenance and handling tips. All this would mean that the company has to handle the entire marketing setup in a different way compared what they were doing earlier. With this as the target, the following strategy for marketing the smaller boats is worked out and is given below. Overall Strategy The following major bottlenecks are observed in the market launch of the new product line using the 4P strategy (Brito M J. 23 Aug 2006) analysis: 1. Products that are made by the company are positioned as a niche product. This positioning has to be altered in order to ensure that the company does not lose out on their turnover. The company has to cultivate and build relationship with buyers of the smaller boats. 2. On analysing the pricing position of the product, it is clear that the company might have to sell larger numbers to reach the same turnover that they were doing earlier. This can be realised only if the company decides to sell these boats through a distributor network. 3. The company has to stock and sell the product since the buyers may not wait for a long period to take delivery of the boats. 4. The company has to have a clear public communication program that would enable the company to reach the buyers and the targeted clients. This promotion is required in order to ensure that the product gains on the market. 5. There should be a detailed study of the competition in this particular sector so that the company knows the competitor pricing and policies enabling them to compete with the rest successfully. 6. There should be a marketing budget in order to ensure that the required targets are met in this segment of the market. This overall strategy will be strengthened by the positive aspects that are already present with the company. These are typically, the brand of the company that would help it to realise the market much more easily. Secondly, there is also a technological supremacy that would help the company to market much better than the rest of the competition. However, it needs to look at the new set of customers differently and also approach them in a different method. In order to realise the overall objectives listed above the following three jobs need to be executed. 1. Appropriate stocking of the finished boats should be present for immediate selling. 2. Since the company has to sell larger numbers, they need to deal through a set of distributors. 3. Competition has to be studied well and continuously monitored to fix an appropriate pricing policy and customer satisfaction policies. These three objectives are discussed in detail below. Promotional Strategy The company has to ensure that the 'right' quantity of boats and yachts are maintained in stock. This will enable the company to dispatch or supply boats on demand and meet the customer requirements immediately. The stocks have to be planned in contrast to the original pull style production system that they had. They need to move over to the push style system that would expect the company to produce and keep in stock and then push it in the market. While the push style is being worked out, the marketing needs to aggressively push the product in the market. The stocking would mean that the company is opting for a push style of marketing and would put the product through a distributor network that would push the product to the customers. Based on the five forces theory, the company needs to work out the right stock quantity based on the overall movement in the market and on the market share that the company is expecting to corner (Business Insight 2007). The company needs to understand the overall requirement of the product across the country and the possible percentage that the company will be able to corner can then be estimated and presented. In addition to this, the company might even think of having warehouses in major locations and nodal points in the country, enabling stocking of boats to ensure that there is a timely and swift delivery of products once the customer buys the product. Another major exercise will be to identify the unique feature or quality of the product that is being put in the market. It is important that the company identifies what the Unique selling proposition is before going full hog in to the market sphere. Every one of the products if appropriately researched will reveal the USP. More importantly it will also let us know the features that the company would be able to add to the products creating an USP. Once the USP is identified and its value to the customer is also identified then the same should be the basic selling point in the promotional campaigns that goes to the market. Distribution Network The distribution network planned should be spread over the country and a net work of distributors needs to be recruited to enable local selling and support (Kotler, Philip. 21 Apr 1999). The distributors will also be in need of a number of support services from the company. This would include educating the probable buyers in knowing the tricks of the trade and in knowing the right methods to sail with the boats. More tricks and tips need to be passed to the buyers once they buy the product to enable them to know more about it. This would also enable them to make full use of the product and would also enable them to recommend it to their friends. In order to ensure that the buyer makes full use of the product, it is also essential that appropriate demonstrations and product performances are given. There should also be appropriate knowledge about the actual operation of the boats and yachts need to be passed to the buyers. Similarly, the distributors also should be educated in the overall boat design and the way it has to be operated to arrive at the best results. It is also important that the distributors have good local contacts and the ability to track down the highest probable persons in the locality. This will enable them to move ahead and competitively market the product in the said locality. It is important that the companies have distributors with the right attitude for themselves. The distribution should be ably supported by advertising campaigns that would promote the product in the market. There should be a basic awareness among the public which will make the jobs of the sales people easier and also ensure that there is a continuous stream of enquiries for the product. The success of the product will depend on the promotion that has been done and the commitment that the distributors have for the product. Appropriate information should go to the distributors in the form of information sheets. It is true that nobody reads the brochures any more. It should reach the distributor as a value proposition for the customers. The value proposition should have a strong differentiator, the USP; promises the results that are possible for the business; and a value addition to the existing business that would let the person immediately recognise and affirm. The existing brand should be strengthened and the building of the brand should be in such a way that the people are able to associate the brand with the quality and the expert engineering that would go into the products. This should be reinforced in appropriate marketing campaigns for this purpose. Pricing Policy The company needs to know their position in the market. The value of their product and the nature of people it would attract and would satisfy. In addition to this, the company should also know the position of the competition and their stands in the market; the price ranges that every one of them satisfies and the price range that is being attacked by the company. The company should also maintain a database of all the products and the models produced by the competitors. This should also carry a feature list of the various products and their corresponding prices. This would help the company to prepare a feature by feature comparison chart that would help the sales people to close the negotiations. In addition to this, this will also help in augmenting the existing models and in releasing models with new features that might not be present in the earlier ones. The company will be competing with the rest of the competitors only if this is done efficiently. A competitor data base will also help in maintaining the company's competitive spirit and in improving upon the existing products. This will also motivate people in the company to corner a larger market share in the market place for the products. This will also help in identifying the clear target customers who will be the major market for the company. A core connection is to be created and maintained with these customers by either calling them for training programs or 'educating' camps / exhibitions. This can be used effectively coupled with competitor information, to design compelling offerings that are not provided by the competition. This need not be price based. It may be on financing, it may be on maintenance or any such feature which is found to be the major reason for the customers to choose their suppliers. Final Strategy All these strategies that the company works out to bring their product into the market would all necessarily require budget allocation for the launch. There should be substantial working on the distribution network building in addition to the new and smaller product development. There is also a lot of effort that has to go in to design and make a product that is competitive and will be able to compete with the others products in the market place, in terms of looks and operating comfort. The boats should be made for laymen and not for experienced people. Therefore, the boat should be designed and made with this perspective in mind. Secondly, a strong distribution network is to be built in line with the discussions had earlier. Thirdly, an appropriate training program and educational program should be taken up for the customers. This might necessitate participation in seminars and exhibitions of related nature and present the ease of operation and comfort in the products developed by the company. Fourthly, the information regarding competition and the competing products are to be maintained which would help in identifying weak spots in the market sector. This would help in positioning the products for those niche segments and try to capitalise on the same for immediate benefit. In all, the four P's of marketing, product, price, place / distribution and promotion, would form the core team that would promote and produce the final P, profits out of it. These need to be appropriately positioned making use of the strategy detailed earlier. Conclusion The above strategy is a re-entry strategy in a market where the company is already known for its related products and has a brand to capitalise on. By suitably employing the 4 P's of the marketing appropriately and in line with the best of the strategies, the results gained will continue to be growing. This would help the company to consolidate and grow. However, there should be an ongoing reviews and changes in the strategy that would help the company to change gears where needed. References 1. Brito M J. (23 Aug 2006) The Evolving 4 P's of marketing. People's Media Company available at: http://www.netscape.com/viewstory/2006/08/25/the-evolving-four-ps-of-marketing/url=http%3A%2F%2Fwww.associatedcontent.com%2Farticle%2F55813%2Fthe_evolving_four_ps_of_marketing.html&frame=true 2. Business Insight, (2007) Michael Porter Five Forces Model, available at: http://www.brs-inc.com/porter.asp 3. Kotler, Philip. (21 Apr 1999). Kotler on Marketing: How to create, Win and Dominate Markets. Free Press. 2. Additional information required to execute this plan. In order to implement this plan the following additional information will be required: 1. The current competition and the products in the market. The standing of the current products in the market and the competitors who are making them will form the basis of the situational analysis that is to be carried out on the market scene. This will let us know where the company could pitch its tent and the nature of competition to expect in that particular sector. This information can be obtained by collecting information from the market; the competitor information can be collected from their websites and from their product literature. This will give us both the features of the product and the commercial offers that are made by the competition. This will also help in identifying the right product for the market from the company's stable. The company will be able to pick up the product that best matches the needs of the market after identifying any gap in the market place left out by competition. If there are none identified, then any of the thinly populated or thinly competed product segments would be the one that the company should get into. Therefore, this information is fundamental to decide on all the above strategies that are to be adopted. 2. The second most critical information that will be required is the strengths of the company and the brand position in the market. Though the company has been in business for a long time and their products have been doing well in the market place, it is important that the company knows the perception of the people about the company and its products. In order to get this, the company has to work on a survey that could be taken across the target market and use it for analysis. This survey should also help the company in understanding what is expected by the customers from it. This would help the company in positioning its product appropriately and when people expect shoes from the company there is no point in giving them caps. By not giving the people what they expect from the company, it will be all the more difficult for the company to chalk a new route. This survey and analysis can also be merged with other requirements for information such as the general preference of the people, their price expectations, their investment plans, etc., This will help the company in planning its production and anticipated market share in the near future. 3. The company would also need to assimilate information on the various products that the company has and has plans to launch in the market for this target segment. Once these information are gathered, the company will be able to work out a strategy to promote the products and to provide information to the target markets about the products. This will help the target market segment to form their own opinion and to motivate them to buy these products. This will also put the push strategy to test and would help the company to move away from the push to the pull market strategy that would help the company to lessen its stocking burden. Over a period of time, every company would like to move over to the pull strategy rather than the push for the simple reason that it avoids stocking of the products. 4. Finally, the company should have an appropriate database on the distributors who will be making up the major marketing network. The company will depend on its distributors to push the product to the market and to realise the sale that it needs. In order to realise this effectively, an appropriate database on the capabilities and the targets for every distributor is to be set. This will help the company in planning for the take off quantity of every model and will help in planning the production for the quarter or for the year. This information is very important to maintain smooth supply for the entire year eliminating any bottle necks in supply. This would result in a good will with the distributors and a consistent availability for the customers at their distributors. All these information will help the company to realise the plan effectively and to time it appropriately. The information can be captured from either internal sources or from appropriate sources, surveys or research documents. This then will be analysed to help draw the right answers for the numerous queries that are vague to answer. ALL STUDENTS SHOULD COMPLETE THIS SELF-ASESSMENT PROFORMA Your grade will be based on how well you fulfill the criteria below:- Key Assessment Criteria Student Self-Assessment Comments 1. Your report should meet the technical specification set out above and address the questions set in a clear way. Yes it meets all the specifications mentioned in the technical specification. 2. Your report should show you understand the models and theory explored in the range of activities. Yes. It does. 3. Your report should not just feature theory but show a good understanding of how marketing issues affect contemporary organisations. Ensure that you use the theory to help analyse and discuss marketing issues. Yes. The report analyses the situation and presents appropriately. 4. Your reflective report must feature correct use of Harvard referencing system. If you have never used this system before don't be afraid to ask whether you have applied it correctly before submitting work! Yes. Harvard referencing has been adopted. Suggested Grade: Staff Comments and grade: Final Grade: Read More