Budget for Apple Vision - Research Paper Example

? Marketing Plan Phase Todd Bell,Heather Brown,Michael Rust, Aimee Riddle, Stacy Wilkinson of Phoniex Marketing/MKT421 Facilitator: Chrisann Merriman February 20, 2012 Budget for Apple Vision Marketing Apple Vision as a new product would require various activities. Some of the activities include creation of the product to take to the market after designing it with customer’s specifications, needs, and wants. There is need to manufactured the created and designed Apple Vision, which will attract customers through ensuring that their demands, specifications, and preferences are met adequately. There will be need to engage in serious promotion of the new product, Apple Vision through various forms of media. Both print and broadcasting media will be used in promoting the product. The following gives a budget estimate of the marketing plan for Apple Vision. Personnel Amount  Measures of Performance Salaries, wages $ 50,000 Motivated employees Benefits $ 30,000 Payroll taxes $ 20,000 Commissions and bonuses $ 10,000 Personnel Total $110,000 Market Research $ 70,000 Primary research $ 30,000 Secondary research $ 20,000 Library management $ 10,000 Market Research Total $130,000 Amount of data collected Marketing Communications $ 54,000 Branding $ 26,000 Advertising $ 20,000 Web sites $ 45,000 Direct marketing $ 20,000 Internet marketing $ 5,000 Collateral $ 35,000 Press relations $ 15,000 Public relations $ 12,000 Analyst relations $ 7,000 Events $ 21,000 Marketing Communications Total $ 260,000 Changes in the market share Channels $ 34,000 Channel communications and training $ 23,000 Channel promotions and incentives $ 3,000 Channel commissions/bonuses $ 5,500 Channels Total $ 65,500 Customer Acquisition & Retention (CAR) $ 23,000 Lead generation $ 34,000 Customer loyalty $ 12,000 CAR Total $ 69,000 Market share growth Other $ 20,000 Postage $ 500 Telephone $ 1,200 Travel $ 2,800 Computers and office equipment $ 40,000 Other Total $ 64,500 Total Marketing Budget $ 699,000 The budget for Apple Vision also includes forecasting into the next few years in a bid to identifying the prospects that can be obtained from launching the product into the market. The following table provides a rough estimate of the possible income likely to be obtained from launching of Apple Vision. Item 2011 2012 2013 Total Revenue 365,000 435,000 432,100 922,100 Profit margin 25% 91,250 108,750 108,025 230,000 Costs Advertising 50,000 50,000 50,000 150,000 Promotion 10,000 10,000 10,000 30,000 PR 20,000 20,000 20,000 20,000 Personal selling Total 80,000 80,000 80,000 200,000 Quantifiable Elements for Evaluating, Monitoring, and Controlling Marketing Plan The effectiveness of marketing plan can be controlled, evaluated, and monitored via various quantifiable elements within the market scenario. Despite the fact that such quantifiable elements differ from one product to another and from one firm to another, there are those that are universally applied in achieving the objective. The following discussion identifies some of the quantifiable elements that can be used in monitoring, evaluating, and controlling the effectiveness of marketing plan. Market Share: There is need for one to study the market share of the compare before the introduction of Apple Vision as well as after the introduction of the product. Market share measures the number of customers that buy and use a particular product. In this case, the number of consumers of Apple Vision will represent the market share of Apple, Inc (Kotler & Keller, 2009). Nonetheless, since Apple Vision is a new product there is a serious need to identify previous market share of Apple, Inc (Kerin, et al., 2009). The figure should be measured against the market share after introduction of Apple Vision. If there is a positive change in the market share as portrayed by the two figures then there is enough evidence to believe that Apple Vision has attracted more customers into the business. Therefore, this is one of the quantifiable elements that can be used in measuring, evaluating, controlling, and monitoring whether the marketing plan is effective. Revenue: Another quantifiable method of measuring, evaluating, monitoring, and controlling the effectiveness of the marketing plan is through revenue. Revenue of a firm represents the entire amount of sales that an organization gets from selling its products. There are two ways of applying revenue of Apple, Inc. in order to find out the effectiveness of the market. The first way is to measure the overall revenue of Apple, Inc. Once the overall revenue is measured or identified from earlier figures, new revenues obtained after the launching of Apple Vision are identified and compared to the previous revenues (Kotler & Keller, 2009). An increase in the figure will be evidence enough indicating that launching of Apple Vision through the marketing plan is effective hence giving vista for monitoring and controlling the same. Another way of using revenues to evaluate, monitor, and control the effectiveness of marketing plan is by launching Apple Vision and thereafter studying the first revenue obtained specifically from the product. Subsequent revenues will be observed, monitored and plotted in a bid to finding out if there are changes (Kerin, et al., 2009). Changes in the graph will indicate that introduction of Apple Vision through the marketing plan was either effective or ineffective. For instance, if changes are positive then it is undisputable that the marketing plan was effective whereas if the changes are negative then it is an indication that the marketing plan was ineffective. Profitability: Like revenues, profitability is another quantifiable element that can be used to test the effectiveness of marketing plan. Profitability refers to the net income obtained after expenses. In this perspective, there are two ways of using profitability as a way of finding out if the marketing plan is effective (Kotler & Keller, 2009). The first way is using the profitability of the whole firm while the second way, which is the most effective, is using profitability obtained from Apple Vision. Just as in the case of revenues, the profits derived from Apple Vision for the first month will be compared to subsequent profits. An increase in figures will indicate that the marketing plan was effectively launched whereas decreasing profitability will indicate that the marketing plan was poorly and ineffectively launched. Growth: Apple, Inc. like many other companies in the global spectrum has different ways of measuring its growth. Measuring the growth of a business is another quantifiable way of identifying the effectiveness of a marketing plan. Even though it is always true that it does not mean that a growth in a business organization must be linked to a new product, there is enough evidence confirming that differentiation of products, expansion and diversification of markets have the capability of causing a growth within a business entity (Kerin, et al., 2009). Therefore, through measuring Apple’s growth, it will be easier to identify whether the introduction of the Apple Vision through a marketing plan was effectively accomplished. Innovative Products: Apple, Inc. relies more on technological inventions and innovations to come up with products that meet customers’ expectations (Kotler & Keller, 2009). Such innovative products have enhanced the market share, profitability, and revenue of the firm besides growth. By observing the trends of the previous innovative products, it will be easier to identify how the marketing plans of such products were launched, evaluated, monitored, and controlled. With such information, will be easier to evaluate, monitor, or control the marketing plan. The previous studies will help in identifying the mistakes made as well as the factors implementers took seriously in order to achieve success of the same (Kerin, et al., 2009). Therefore, previous innovative products and their marketing plans can be very effective benchmarks in evaluating, controlling, and managing current marketing plan with focus on attaining success. Lastly, it is important to note that for all the above to function effectively, there is serious need for continuous and regular meetings (Kotler & Keller, 2009). Such meetings will define newer objectives whist attempting to draw conclusions from the achievements at hand. Meetings are important in setting the benchmarks required to come up with an effective strategy that will ensure that all the set objectives of the marketing plan will be attained effectively. References Kerin, R. A., Hartley, S. W., Berkowitz, E. N., & Rudelius, W. (2009). Marketing (9th ed.). New York, NY: McGraw Hill. ? Kotler, P., & Keller, K. L. (2009). Marketing management (13th ed.). Upper Saddle River, NJ: Prentice-Hall. Read More