Prepare a report proposing a new product/service (or a new market for an existing product) identifying the key relationships and processes that will need to be managed for successful implementation, and outlining and justifying a selection of metrics that may be used to assess success.
Process and methodologies adopted by the business organization for managing and maintaining the marketing activities and approaches can be termed as the process of marketing management. This process is considered as one of the empirical tasks for any of the business organization and that should be executed with a greater level of effectiveness and efficiency (Burns, Bush & Sinha, 2014). This mechanism will enhance the effectiveness of promotions and advertisements that are executed for developing a distinct brand image in the market region and thus increasing the performance and productivity of the corporation. The below-presented report is summarized on some of the core concepts that are associated with marketing management. Sapura Energy Bernhard is planning to develop a new product in the markets of Romania and hence the report comprises of a detailed analysis over the market regions of Romania.
Sapura Energy Berhad is one of the top global unified oil and gas service providing organization and is based in Selangor, Malaysia. With all the developed and brilliant services, the following company has managed to trade with over 20 countries all around the world (Chernev, 2018). Sapura energy’s excellent workforce, who excels in possessing high skills and latest technology, is what makes it so advanced in this field along with making it one of the strong organization because of its powerful strategies and capability to manage the whole project. To expand its operation worldwide, Sapura energy is attempting to penetrate a new market region that is, Romania and the PESTEL analysis of the new market is as follows:
Political Factors- This constitutes all the changes made by the Romanian government regarding the trade of oil and gas on an international or national level and government can affect the oil market by many factors for instance, by launching anti-pollution law or liberating the oil and gas market, too much fuel transportation charges, high fuel taxes and many more (Baker, 2014). Political instability and the conflicts related to geopolitical are the major threats to Sapura’s service while transporting them to Romania. Another factor affecting the trade could be random fluctuation in taxes and in Romania, usually a frequent change can be observed in the preexisting policies launched by or related to the governing party over there.
Economic Factors- The factors that affect or are related to the economy of the new market which is Romania will be considered under this factor. In the last decade, Romania has shown a comparatively great growth in GDP and along with that it has made many advancements in technology sector too and this will help Sapura to establish its branch in the new market positively and also giving it a competitive advantage (Foxall, 2014). Low-cost labor is one of the main advantages of establishing the business in Romania market which automatically makes the production factor inexpensive which aid in new business ventures. Along with many economically benefiting factors, there are few drawbacks too like no transparency in trades and not able to use the whole potential and gain competitive advantages and also lack of coherent and logical methodology or strategies related to business. Another disappointing factor is that there are a very low rate and ways of transportation, which is a huge setback since this field, requires so many different ways of transportation that is why for Sapura it can be a problem because it can affect the rate of supply and the trades occurring between multi-nations (Hill, 2017).
Social Factors-These factors refer to religion, culture, a relation between different culture, demographic factors, literacy rate, migration rate, income structure and distribution, products according to a cultural point of view, ethnic factors, family structure and the rate of urbanization. Since oil and gas are necessary and there is no culture or religion which is against the use of oil and gas so it is a very huge plus point for Sapura. But along with that there is a fraction of population which sees oil industry as a source of environmental pollution which is kind of a setback for the industry but the problem can be solved with the help of socially integrated events which will be of great help to lower down the rate of social atomization in Romania. Despite few differences in point of views, the oil and gas industry is still influencing so many lives in many ways and has a huge impact on people’s day-to-day life.
Technological Factors- Based on the research it is noted that technological sector is not that advanced as compared to other countries because the amount of GDP used for technology and it’s development was comparatively very low. But in the last decade, Romania has made significant progress in Information Technology and other technologies and even one of the major dynamic factor which aids in the progress of Romania and it can be very benefiting for the Sapura energy to gain competitive advantage and make progress.
Environmental factors- These factors cover all the conditions and effects that arise due to the environment and how they can affect the market and its progress (Babin and Zikmund, 2015). Due to an unfavorable environment and weather, conditions there will be huge impacts on the production process. The governing authorities have implemented few laws and rules which restricts the fuel production and transport which makes the trade little hard for the company.
Legal Factors- These factors affect the transportation, exploitation, commercialization of oil and gas services and therefore plays an important role in every step taken towards their use or their production and their transportation (Baker and Saren, 2016). Along with that, the legal factors also determine the factors related to the environment, social culture, international business, buyers and business protection, taxes, corruption and many more factors related to this field. These policies are good for preventing corruption and that can be advantageous for Sapura energy but there are few factors like fluctuation in taxes and pollution prevention act and some more which can affect the business adversely.
For a business to achieve success and progress in the new market depends on many factors for instance beliefs, desires, positive attitude, good habits, powerful and strong strategy and last but not the least is building good and strong relations. All these factors are responsible for business growth in the new market but the most important of them all is “Relationships” between the company and all the people related to the company, indirectly or directly because all those people play a very important role in building the business and its progress (Baker, 2014). Setting up the business in a completely new market can be very difficult and therefore is a challenging factor and therefore it requires all the help and support that it may find. The positivity and the negativity in the relationship can affect the business in their own different ways like progress or profit and loss or failure. All the members like, customers, suppliers, intermediaries, partners, brokers, resellers, stakeholders and the employees play a very important role in building the business in the new market.
Suppliers are very important for the establishment and the expansion of business that is why it is very important to find loyal and trustworthy suppliers and maintain a good relationship with them. Because there are so many ways in which a bad relationship with the supplier can affect the new business like, compromising with the quality of product, high price of the product, no support in finance, low interest towards the company’s product manufacturing and not delivering the order on time or taking longer than expected and many more (Blakeman, 2018). Then comes the customers who are the key factor in the business because they are what completes the business and a good relationship with them can be very advantageous for the company. Other members are intermediaries who facilitate the flow of goods and items back and forth, and a positive linkage between these chains can make the business strong than any other competitors. Apart from these, there are other members like employees and stakeholders and the same thing goes for them too which is that a positive and loyal relationship with them can be fruitful.
There are some strategies that can be used to enhance the business relations and make them stronger because after-all they are the one who will help with establishing the business. For instance, for launching a new product or service the suppliers are the one who supplies all the raw material or in some cases they are the one who manufactures the whole product and then comes the launching and promoting the product. This is done by the marketing team and along with that, they are also taking care of each and every aspect of the business and the organization (Peñaloza, Toulouse and Visconti, 2013). Once the product is launched, the intermediaries like brokers, dealers, resellers facilitate the flow of material, product or services and without them, it becomes nearly impossible to get the product flowing in the market. And then comes the important member of the chain which is the customer and without whom the trade is nothing and there will be no profit that is why relationships are important in a business and developing these vital relations becomes necessary and aid in business growth and it’s progress because it ensures loyalty and trust through more and more communication and therefore increasing co-operation and motivation among all the members and in return the company will get high-quality services and productivity and this will create a competitive advantage which will be a plus point for the company and therefore will help the business to develop.
One of the best tools for developing the marketing objectives is the S.M.A.R.T. approach which is discussed below:
Specific- When setting up the new business it is necessary to focus on the specificity of the goal or objective or in other simpler term (Sharma, 2013). The organization should be specific about what they want to achieve at the end of the task or the project and it should be well defined and also be clear to each and every member related to the task and in order for the objectives to be specific there are some question that can be considered before laying out the objective and are as follows:
1) When- Making the goal “Time-Bound”, that is setting a deadline for the completion of the goal
2) Why- The main reason for establishing the objectives
3) Who- Who is required to be involved in order to fulfill the objectives and then to achieve the goal
4) Where- Which would be the best location to execute the objectives
5) Which- Considering all the requirements and observing all the obstacles that may arise or any kind of constraints
6) What- The main details regarding achieving all the objectives
Measurable- It refers to the time interval required for the completion of goal or measuring that how far away are the objectives and then breaking the objectives into different elements that can be evaluated or measured because this will tell the organization exactly what they require and predefining its manifestation in physical form that is everything the company will get after the objectives are fulfilled and this will make everything clearer and faster in the way of achieving the objectives (Sheth and Sisodia, 2015). Solid criteria and strategy are required to measure the rate of progress towards the goal and evaluating the progress will help in accomplishing a goal in a better way. There are a few questions that can be framed to measure the progress of the objectives.
Attainable- This tool arises a question that is if the objectives are attainable or not? And basically means if the objectives can be completed or acceptable to the company. This includes different approaches towards achieving the objectives like, skills, attitude, budget etcetera and with proper strategies and planning (Armstrong, Adam, Denize and Kotler, 2014). The objectives can be achieved and with the proper techniques and skills it will become easier to attain them and they will seem to get closer with every step and all it needs is a smart planning and then the objectives will not seem much impossible and all efforts and time spent on laying out the plan for achieving objectives will be worth in the end, and will result in business growth and huge profit for the new business.
Realistic- This focuses on the objectives being realistic, that is if they will work or not, objectives can be high or of high standards but that does not mean that they should be out of approach and cannot be attained instead of that a high goal stands for a type of goal or objective which provides extra motivational force because a low goal would be very easy to achieve and will not provide much motivation and along with that the objectives should be within the reach of all the available resources, technology, information, knowledge and can be completed before time (Farris, Bendle, Pfeifer and Reibstein, 2017).
Timely- Time is the most important feature of any kind of planning and all the objectives should be framed according to a time limit because most of the times, deadlines work as a pushing force and make people act fast that is why to achieve the objectives faster, time limit (Perreault, Cannon and McCarthy, 2015). This is a brilliant approach and it will also keep the morale high but there are some drawbacks to this approach too that is too much focus on time limit can have a perverse effect that is instead of focusing on the outcome of the objectives the company will only focus on completing the task turning the whole scenario into some kind of race and all everyone want is to win against time but this is not how it’s done, therefore this approach should be used in a proper manner which will help the objectives to get completed soon but along with learning everything while doing so.
Break-even
Break-even analysis will aid the business firm in determining the level of profitability. This mechanism will guide the entity in establishing the targets in terms of units of revenues and thus all the expenses related to the product development will be managed accordingly. This will be proven beneficial for the firm (Burns, Bush, and Sinha, 2014). The below presented is the break-even for Sapura Energy Bernhard in Romanian market regions:
Sales = 165000
Launch Cost- $8.0
Variable cost –3.5
Marketing Cost 1.0
*Assumption- Fixed cost = Marketing cost+ Launch Cost
= $5000+ $80000
=$85000
Break Even Point = Fixed cost/Contribution per unit
= $85000/$9.0
= $9444.44
The above presented are the two rivals of Sapura Energy Berhard and they are offering the high level of competition to the business entity.
Conclusion
In the limelight of the above-executed analysis, it is concluded that the concept of marketing management will enable Sapura Energy Bernhard in executing a detailed analysis of Romanian market regions. This analysis will aid the entity in developing a strong and distinct image of the new product that the business corporation is planning to launch.
References
Armstrong, G., Adam, S., Denize, S. and Kotler, P. (2014) Principles of marketing. Pearson Australia.
Babin, B.J. and Zikmund, W.G. (2015) Exploring marketing research. Cengage Learning.
Baker, M. J. (2014) Marketing strategy and management. Macmillan International Higher Education.
Baker, M.J. (2014) Marketing strategy and management. Palgrave Macmillan.
Baker, M.J. and Saren, M. eds. (2016) Marketing theory: a student text. Sage.
Blakeman, R. (2018) Integrated marketing communication: creative strategy from idea to implementation. Rowman & Littlefield.
Burns, A. C., Bush, R. F., & Sinha, N. (2014) Marketing research (Vol. 7). Harlow: Pearson.
Chernev, A. (2018). Strategic marketing management. Cerebellum Press.
Farris, P., Bendle, N., Pfeifer, P. and Reibstein, D. (2017) Key marketing metrics: the 50+ metrics every manager needs to know. Pearson UK.
Foxall, G. (2014) Strategic Marketing Management (RLE Marketing). Routledge.
Hill, T. (2017) Manufacturing strategy: the strategic management of the manufacturing function. Macmillan International Higher Education.
Peñaloza, L., Toulouse, N. and Visconti, L.M. eds. (2013 Marketing management: A cultural perspective. Routledge.
Perreault, W.D., Cannon, J.P. and McCarthy, E.J. (2015) Essentials of marketing: A marketing strategy planning approach. McGraw-Hill Education.
Sharma, N. (2013) Marketing strategy on different stages PLC and its marketing implications on FMCG products. International Journal of Marketing, Financial Services & Management Research, 2(3), pp.121-136.
Sheth, J.N. and Sisodia, R.S. (2015) Does marketing need reform?: Fresh perspectives on the future. New York: Routledge.
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