Marketing Achievement Of Business Objectives

Published Date: 02 Nov 2017

Table of Contents

Introduction

In today’s business world Marketing Management plays a vital role. Most aspects of the business are highly depending on how successfully that business is practicing the Marketing. This assignment is mainly focusing on identifying marketing principles and how those marketing principles practically use for the success of the business. This study broadly illustrates the need of a proper marketing plan for a product to be sold. For the purpose of preparing a marketing plan it has selected an electronic consumer durable manufacturing organisation in UK, named Bulpitt & Sons Ltd, which was established in 1931 in UK with a strong establishment with their popular brand name of ‘Swan’. They are currently manufacturing consumer durables for the domestic usage such as irons, kettles, microwaves, refrigerators, toasters and etc. For this special study, a marketing plan has been developed for domestic purpose stream irons. Based on the marketing plan for stream irons, this assignment provides understandings on following areas;

Importance of marketing for product development and its contribution to achieve business objectives

Importance of analysing environmental factors for a business

Different elements of marketing mix including strategies of product, price, place and promotions

Benefits of segmenting, positioning and targeting

Importance of the marketing for the achievement of business objectives

Marketing is not the selling products but the art of selling products to the customers who is willing to buy to satisfy their needs and wants. Since marketing covers all the requirements to satisfy customers, marketing management must be a part of every employee’s work in the organisation. According to the definition of American Marketing Association (1995), "Marketing is the process of forecasting and implementing the conception, pricing, promotion and distribution of ideas, goods and services and exchange them the way that satisfy individuals and organisational objectives". As per the William and Ferrell (2010: p.5) organisation must define their product not according to what they produce but according to how they satisfy their customers. The reason is even the products and the services are in best quality still the customer has his own preferences and willingness to buy them.

In Kevin’s and Peter’s words (2000: p.17) only through marketing, business can find and keep customers. Preparing a marketing plan for Swan branded stream irons is very important towards the development of the product, because it educates public about the company and the products, increase sales and profits and increases the reputation of the company. Best marketing practices of Swan irons make a greater deal of contribution towards the achievement of their business objectives and the importance of the marketing which they can enjoy can be listed as follows.

Marketing promotes product awareness to the customers. Because of marketing, specially by advertising and promoting programs consumers get information about the company and the products.

Coxhead and et. al. (2006: p.23) explained that to be a best performer business has to differentiate with others and that should be seen by the consumers. This can achieved only through marketing.

When the public learns about the company by the means of advertisements, commercial and other promotional programs, and that will help them to increase their sale and growth in revenue.

Even in unfavourable situations in business environment, company still can remain successfully and sustain within industry by improving their brand recognition through marketing. Marketing builds company reputation in long term.

Marketing process

Kotler (2000) explained that the marketing management process is the analysis, planning, implementing and designed programs, control and maintain that program which ultimate target consumers for the purpose of achieving organisational goals and objectives. Figure 1.1 explains the step by step process of marketing management. It consists of research, segmentation, marketing mix, implementation and control.

Monitor

Evaluate

Improve

Control

Marketing Research

Research

Targeting

Positioning

Branding

Segmentation

Execution

Quality

Experiences

Implementation

Product

Price

Place

Promotion

Marketing Mix

Figure 1.1 Marketing Management Process

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Step one: Research. First and the foremost step of the marketing process is to study the market through the marketing research. This is where the business identifying their potential customers and their requirements.

Step two: Segmentation. After familiarised with the market needs and wants, then company can target, position and create market segments base on the group of individuals or organizations which is having similar characteristics to serve with similar products and services.

Step three: Marketing mix. This is the most important aspect of the marketing process that is, to design and develop a marketing mix including products, price, place and promotion to satisfy the segmented customer group.

Step four: Implementation. Company needs to implement their planned marketing strategy and should execute the plan effectively and efficiently. This is the step where the designed plan makes into practice. As per the Amstrong and Kotler (2008: p.51) implementation address who, where, when and how the plan make into action.

Step five: Control. After implementing the strategy business should always be evaluate the outcomes and the results by thorough monitoring. By monitoring and evaluating business can understand whether they have achieved their objective of the marketing plan or not.

Environmental analysis

Companies are operating in the environment that consists of many external factors that directly or indirectly impact on marketing process of that company. As discussed by Richard and Lane (2010: p.62) business environment are increasing dynamic and those external factors affecting to the business are beyond its control and the success of the business is highly depends on how well they are adopt to its environment with their marketing strategy. The environmental analysis is basically provides information about the organisation’s current situation with regard to the marketing environment, their strengths, weaknesses, threats and opportunities. According to the figure 3.1 competition, socio-cultural, economic, political-legal and technological are the most influencing forces.C:\Users\pc\Desktop\collins-fig09_015.jpg

Figues 6.1: Marketing environment framework.

Source: http://catalog.flatworldknowledge.com

The marketing environment

Under this section of environmental analysis, it is considered relevant external environmental factors which have a great influence on ‘Swan irons’ such as competitive, economical, political, technological, socio-cultural and legal and regulatory forces.

Competitive forces: According to the Rishard and Lane (2010: p.69) competitors are those who operate in the same market and selling the same products to the buyers. The competition in the electronic products industry specially for stream irons is very heave locally as well as international because there are so many popular best brands are available in the market. To compete with the other products swan irons have differentiated with many features and also all the ranges of stream irons are available in stores.

Economic forces: Due to the current economic conditions such as current recessions, demand and supply forces, inflation and cost of living, resource allocation, economic policies such as fiscal and monitory and other forces have a big influence towards the production and distribution of the products.

Socio-cultural forces: As discussed by Goyal (2009: p.363) society hardly go without accommodations. So Bulpitt & Sons Ltd has understood this issue and the swan stream irons are very convenient and easy to use. Customers will ignore the products if it does not easy to use and is not easy to use.

Legal and regulatory forces: Common lows and regulation in the country also influencing the production and marketing of products. Swan stream irons are produced under the evaluation of UK Electrical Equipment (Safety) Regulations 1994.

Political forces: company does not expect any political event or impact towards the production, marketing and supply of the swan stream irons.

Technological forces: Machinery, materials and related knowledge used for the production also influence the production decision of the stream irons. There are so many technological advancements and interventions such as clothes streamers.

Current marketing objectives

Following are the main targets set to achieve in coming 12 month starting from April 2013 to March 2014. All the divisions including production, human resources, operational, finance, sales and marketing should contribute responsibly for achieving these objectives.

Increase the market share from domestic household consumers by 10%

Increase the sales volume by 8 -10%

Achieve a profit margin of 5% from the stream irons to the group’s overall profits.

Create a strong brand image in consumer’s mind by enhance the ability on researching of customer preferences, adopt new technologies and introduce new features to product. In Kevin’s and Peter’s words (2000: p.15) only through marketing, business can find and keep customers.

Swan products are focused on improving people’s lives through timely innovations. Products are integrated technologies and design products which centring people and in light with the UK electrical equipment regulation to ensure the safety.

SWOT analysis

Strengths: these are the core competencies that provide the company an advantage when addressing the consumer’s needs and wants. As per Fareel and Hartline (2011: p.129) strength are effective and meaningful only if they can satisfy customer’s needs. Following strengths can be identified with swan stream irons.

Brand - Bulpitt & Sons Ltd has entered into the market of UK domestic consumers in 1931 and with 80 years of experience they have a vast knowledge about the behaviour of the consumers and know their requirements exactly. Swan has become a household brand for stream irons in UK. Swan is among the top brands ranked by which.uk (2013).

Quality – swan stream irons are high quality, producing with the new advancements technology in the industry. This is the reason behind the brand position in the consumer’s mind as per Rise and Trout (2001: p.4)

Swan irons are available all over the country in every possible shop. Also consumers can purchase irons through online ordering from the company’s website as well as any other commercial websites such as Amazon, eBay and etc. Bulpitt & Sons Ltd maintain a strong distribution channels to serve consumers well.

Weaknesses: the limitations the company is having when designing and implementing marketing strategy.

Lack of the exposure, skills and the knowledge of the marketing team and the other relative staff of the company.

Opportunities: these are the favourable conditions in the external market that could gain advantages if the company properly apply them. As indicated by Fareel and Hartline (2011: p.130) opportunities can be come from many sources.

Technological advancement and innovatory features which consumers willing to have with the products.

Increasing use of household electrical equipments to make things easy and with less time consumptions.

Threats: these are the barriers which prevent company for reaching their targets and objectives.

Major threat to the swan brand is the huge competition in the electronic equipment industry. There are some strong brands like Black and Decker, Panasonic and etc which have a big share of the market.

Marketing strategies

Customers in the market are different and the company cannot connect and serve to customers in large. When the market considers the consumer in large and applies same marketing mix for every individual group, it is called mass marketing. However it is less possible to satisfy each and every individual by a same marketing mix as they have their own personal preferences. As per Amstrong (2005: p.78) customers are differ on their wants, resources, location and buying attitudes and practices. To take competitive advantages among the competitors company should be more sensitive to the each customer’s needs and wants. So Bulpitt & Sons Ltd has identify the target market of customers with common specific needs and wants for the 2400W Swan SI3030N Ceramic Soleplate steam iron and create specific market segments.

Target market one: The 2400W Swan SI3030N Ceramic Soleplate steam iron first target is the domestic household users in UK.

Target market two: International market through online marketing.

Marketing mix

Marketing mix is the controllable elements of a product’s marketing plan that is designed to satisfy ultimate customers’ needs and wants. Those elements are classified for four groups and called it as 4ps: products, price, place and promotion as shown in the below figure 4.1.http://wc1.smartdraw.com/examples/content/examples/05_strategy_&_planning/marketing_mix/4ps_marketing_mix_l.jpg

Figure 4.1: the 4Ps of Marketing Mix

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Product

The product simply means the function and the features offered by a good or service by the company. As discussed by Blythe (2006: p.13) Product is a bundle of benefits which offered to the buyers to satisfy the wants and the needs of the consumers. Following are the features and the description of the swan stream irons.

Model

Main features

Other features

Swan SI3030N Ceramic Soleplate steam iron

Offers an effortless ironing experience. The Swan steam iron uses premium ceramics to make sure this gliding action is one of the most excellent. Includes an anti-drip systems and anti-calc and self-cleaning function.

2400 watts, Steam output, 350ml capacity of water tank, 100g/min shot of steam, Anti-scale and Anti-drip, power cord 3m, 1.5kg of weight, late button and groove with ceramic slope, Temperature ready indicator, Soft-grip handle, Cord storage, 3 pre-set programmes, Front fill, indicator of water level, Vertical & Variable steam, Self-cleaning function.

Positioning the product

Positioning is the process of designing the company’s products or services brand in customers mind in a way that motivates customers to purchase that product or service. According to the Ries and Trout (2001: p.3) the main aim of positioning is to create a best image about the brand in customer’s mind.

According to Senguptha (2005) there are four basic components in position concept and swan brand for stream irons is well positioned in consumers mind as it adhere to the below components.

Product class of the market which the brand will compete: Swan SI3030N Ceramic Soleplate steam irons are targeted to the middle class audience of the market.

Consumer segmentation: UK domestic household users

Consumer perception of the brand compared to the competitors.

Benefits offered by the brand. This can be expressed as attributes or dimensions of the brand that are represent for customers: by adding many features to the product than competitors.

Price

Bulpitt & Sons Ltd understand well that the price is the only one in the marketing mix that generates sales revenue to the business while all other elements create cost to the business. Price can also be described as something of value that is used to exchange for satisfaction of goods and services. As indicates by Kurtz and snow (2009: p.604) before pricing the Swan SI3030N Ceramic Soleplate steam irons, company has researched the customers’ opinion regarding the price because it is very much important as it indicates how customers value the product to satisfy their needs. And the company always compatible with price elasticity and the consumer demands when adjusting the price.

Place

Choosing where customers can buy the product also a key decision made under marketing plan. As indicated by Young (2008: p.247) attracting customers are depending on the place/location. Place decision covers the location, transportation, channels and inventory of the marketing mix. The place element involves in making the product available to the consumers in most convenient and accessible way. For the Swan SI3030N Ceramic Soleplate steam irons Bulpitt & Sons Ltd using direct distribution through their showrooms island wide as well as indirect distribution channels through supermarkets agents, online marketing websites and etc.

Promotion

Promotion is the way of communicating with the consumers. Through the promotion consumers get the information that helps them to make the buying decision in the market. As noted by Shimp (2010: p7) every organisation use various tools to promote their offerings to achieve organisational goals so do Bulpitt & Sons Ltd. Their successful promotion including advertising the Swan SI3030N Ceramic Soleplate steam irons to increase customer’s awareness by the means of TV advertisements, newspaper advertisements, publishing in trade journals and other publications.

Marketing implementation

Marketing organisation

Bulpitt & Sons Ltd’s current as well as future products require extensive features which satisfy different preferences of consumer needs. It is important to organise marketing function in an accurate way. For this purpose marketing division has organised as groups such as;

Research group: responsible for researching various types of consumer preferences, market trends, competitors’ products and features and technological advancements. They can use either qualitative or quantitative methods as indicated by Burns and Bush (2006: p.202) such as observational research, focus group research, survey, interviews and etc.

Business development team: responsible for design marketing strategies, product decision, marketing mix elements and implement them.

Sales and advertising team: responsible for design and develop promotional strategies specially advertising the products. As discussed by William and McCarthy (2006: p.368) they can use different methods to promote the product to aimed at final customers such as advertisements, sales promotions that give short term incentives to encourage purchase, consumer promotions (samples, coupons, cash refunds, price packs), trade promotions which persuade resellers to encourage their sales and business promotions (conventions, trade shows and sales contests)

All the teams are headed by a manager and all will be reported to the marketing director of the company. Each group is empowered to make their own decisions to achieve marketing objectives.

Task, duties responsibilities and time frame

All the development and implementing activities will be begin on 1st of April 2013. Time table are as follows;

1st of April - establish groups, assign members, appoint heads and assign task, duties and responsibilities.

Mid of April – start the following projects by the research team; As defined by Palmer (2000) marketing research is the process of researching the company’s whole marketing process and should be covered following areas.

Product survey to know the consumer behaviour and attitudes about the product

Conduct a customer survey program to identify consumer preferences for future product development

Analyse new marketing trends and competitors’ approaches.

Research on technological advancements

Mid of April - Design promotional strategies and decide on methods of communicating the current products to the consumers

To complete these projects each team will be given 75 days.

By mid of March – Implement all the strategies. As discussed by Fareel and Hartline (2011: p.325) implementation is critical to success of any firm because its responsibility is to putting the marketing plan into action.

After implementing once a week each team should meet together and review their progress.

Evaluation and control

This provides the details of how the marketing plan results will be evaluated and measured. For that purpose firm used performance which can be described as per Pride and Ferrel (2012: p.50) the expected levels of performances which can be compared with actual outcomes. Following performance standards and controls are suggested.

Total cost of the marketing plan of Swan SI3030N Ceramic Soleplate steam irons including surveys researches and promotional programs will be 5% of the company’s annual promotional budget for the starting year.

Breakdown for the projects are as follows;

10% for study the consumer preferences

20% for analysing new technological advancements

20% for analysing competitors strategies and product differentiates and their techniques.

30% for promotional strategies including advertising

20% for new product development plans

Monitoring procedure

This is a prime requirement to analyse the effectiveness of the marketing plan by comparing actual performances with the objectives in the plan. According to Dibb and Simkin (2000: p.112) monitoring the progress is crucial element of any marketing plan. Followings are considered;

On monthly basis, a comparison of actual and planned activities will be conducted.

Each group should be responsible for their decisions; changes made and implement the plan effectively and efficiently.

Conclusion

The main objective of the marketing in the business is to attract more and more consumers than their competitors. Bulpitt & Sons Ltd are serving consumers specialising their product to consumer durable electronic equipment with the brand mane of Swan in UK. This study mainly focused on planning and implementing marketing strategy for one of their best branded product, Swan SI3030N Ceramic Soleplate steam irons. Marketing strategy includes marketing environment analysis which has a great influence toward the product, SWOT analysis to identify strengths, weaknesses, opportunities and threats, design of marketing mix of the unit including the decisions on product, price, place and promotions, establish targets and objectives, implement strategies and marketing plan and evaluate the performance by comparing planned objectives with the actual outcomes. This has commenced on the coming year of 2013 starting from 1st of April. This study emphasise the importance of having a proper and effective marketing plan for the organisation as whole as well as for each and every units in the production line in the organisation.