Market Penetration: Marketing strategy adopted by companies to enter the market. The strategy is basically related with the pricing strategy. It is the extent to which a product is recognized and bought by customers in a particular market (Lee, Grana & Glatnz, 2014)
Market Development: Strategy targeted towards non customers and converting them into the customers. It is basically identifying new market segments for current products (Coleman, 2016)
Product development: In simple language, the creation of new product line, or some modification in the product, with added or modified characteristic, and adds values to the customer can be understood as product development (Eppinger & Ulrich, 2015)
Diversification: It is a corporate strategy to enter into a new market or industry in which the business currently doesn’t operate, also creating a new product for the same market or a new market (Bodie, 2013)
The Product life cycle has primarily 4 stages: Introduction, growth, maturity and decline (Stark, 2015)
Introduction: When the product is launched in the market.
Growth: This stage can be understood as the stage, when the product has already penetrated in the market and amongst the customers.
Maturity: This is the stage when the product shows no growth and just has a flat curve, it does not acquire any new customers and hence flat curve.
Decline: This is the stage when the product dies in the market, and it is slowly removed from the retail stores as it has reached its saturation stage.
The size of the market is evaluated by first identifying the target audience according to the demographic of the market. After identifying the market size, it is estimated as to what percentage of the people are to be targeted, and based on that market size is calculated (Mayer, Melitz & Ottaviano, 2014)
The three sources can be: TAM- Total available market, SOM- Share of market & SAM- Served available market.
It is extremely important to review the market trends because of it helps to understand how the market is functioning in a particular industry. How are customers reacting to a new product, what kind of pricing strategy is successful, how are employees being retained by the companies and what are the new ways by which the market share can be increased.
The key financial indicators are market share, market size, market potential and market penetration.
ROI is usually expressed as a percentage and is typically used for making financial decisions, in order to compare the company’s profitability or to compare the efficiency of different investment. The formulae is (Net profit/Cost of investment) *100.
Identify and outline five examples of legislation and regulations that apply to the marketing industry in Australia.
Advertising- Misleading and deceptive conducts and bait advertising is ban in Australia.
Does not call register?
Pricing regulations
Spruiking
Trade mark laws
International pricing regulations
It is extremely important for marketers to abide by the provisions of the Australian marketing institute code of professional conduct because it is the governing body for all the content and the advertisement. It is the body which controls the way the companies can advertise, it should not be misleading and be part of bait advertising and numerous other laws
The code explains to follow the legislation as prepared by the board.
The marketing mix can also be known as the 7P’s of marketing, it is the entire marketing strategy for any company offering product or a service (Armstrong, Kotler, Harker & Brennan, 2015)
Product: It deals with the design, technology, usefulness, convenience, value, packaging, branding etc. of the product (Mintz & Currim, 2013)
Price: It refers to the pricing strategies for the product
Place: It refers to the place where the product has to be distributed, retailer, distributer, etc.
Promotion: It refers to the marketing channels of promotion like newspaper, web, etc.
Marketing mix is extremely important as it breaks down the entire product strategy into 7P’s: Product, price, place, promotion, process, physical evidence & people. All these elements combined together help the marketers to formulate the strategy for the product to be distributed in the market.
The key steps in the marketing process can be Research, Plan, implement, measure & optimize. Research is conducted on the customer behaviour and the market, planning is done for business goals, campaign strategy, implementation is done by creative and analytics, marketing process is measured on the basis of the goals made or the test strategy, and in the end, optimization is based on the report on goals and the scenario.
Judgement & survey techniques
Customer and channel surveys
Sales force composite
Time series techniques
Sales forecasting is a very important tool used by sales organisation. By forecasting the future sales, appropriate product can be introduced in the market. All the marketing expenditure and opportunities revolve around sales forecasting. Sales forecasting helps to estimate the sales in the future, and thus the efforts to achieve that numbers are taken based on the forecast.
Time series technique: This technique examines the sales patterns in the past in order to predict sales in the future. For example, with a trend analysis, the marketing executive identifies the rate at which a company’s sales have grown in the past and uses that rate to estimate future sales.
The company chosen is The Riverview Hotel, Notown, USA; it is a representative of the 5 star brands within the USA “Exclusive Business Hotels of the World” group. All Riverview hotels are boutique properties and offer between 25 to 30 exclusive rooms.
Prepare for the Meeting: The hotel is dependent on the business from automotive, IT & Trade sector, over the last few years the business from these sectors is on a downtrend. Also, this is 70% of the hotel business. The current trend of the market is slow due to economic downturn and political policies. Hence, how to turn the tables around and putting Riverview back in business is the agenda for the meeting.
Market Needs: Riverview hotel, at the very onset understood the pulse of the market, it focussed on value based pricing and has been providing more values to the customers at affordable prices, makes them rate highly on customer surveys.
So, the objective of the meeting is to identify its target segment, work on the objectives set by the management and work towards its future marketing strategies.
Conduct a Meeting
Objectives to be Achieved:
Market Demographics: Families with children either staying home or away, and one of the Grandparents completed college from the town, is the demographic of the region
Market Psychographics: Influential and strong, like- minded & community groups dominate the region.
Market Behaviour: The market is very predictable, with 68% awareness among the population, and a strong sense of community among business people, the businesses can rely on the relationship they built with the suppliers and trading partners.
Policies related to Corporate Travel: Due to multiple notices related to security, the domestic and international travel both has been adversely affected.
Local Business Trends: The local area is showing signs of weakness, conferencing business is low, and the local companies are choosing to conduct meetings in their own premises to cut down the costs.
Economic Cut Backs: The city had to cancel 3 major trade events, and also the ones being going had a fewer attendance than expected.
Market Growth: The market has shown great strength, even at the time of depression, travel & trade sector has been growing at an average of 7.1%, while the automotive sector is holding at 9.5%, and IT sector standing tall at 8%
Conducting a survey in the entire city and knowing the awareness of the hotel, and also working towards the Net promoter score and customer surveys.
Market to be expanded other than automobile & IT sector, the hotel should focus on the community of all the sectors.
Explore the fruits of social media marketing and promote the services and customer feedback on it.
For each of one of the three the marketing opportunities that you have identified as being most viable develop a report (in the template provided by your assessor) that addresses:
Evaluate and report on required changes to business operations in the event of the opportunity being pursued as follows:
References:
Lee, S., Grana, R.A. and Glantz, S.A., 2014. Electronic cigarette use among Korean adolescents: a cross-sectional study of market penetration, dual use, and relationship to quit attempts and former smoking. Journal of Adolescent Health, 54(6), pp.684-690.
Coleman, R., 2016. Fashion Dos: Acknowledging Social Media Evidence as Relevant to Proving Secondary Meaning. Trademark Rep., 106, p.776.
Eppinger, S. and Ulrich, K., 2015. Product design and development. McGraw-Hill Higher Education.
Bodie, Z., 2013. Investments. McGraw-Hill.
Stark, J., 2015. Product lifecycle management. In Product Lifecycle Management (Volume 1) (pp. 1-29). Springer International Publishing.
Mayer, T., Melitz, M.J. and Ottaviano, G.I., 2014. Market size, competition, and the product mix of exporters. The American Economic Review, 104(2), pp.495-536.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.
Mintz, O. and Currim, I.S., 2013. What drives managerial use of marketing and financial metrics and does metric use affect performance of marketing-mix activities?. Journal of Marketing, 77(2), pp.17-40.
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