The corporate objectives were
• have a significant retail presence in home wares in every Australian capital city
• be a national retail brand, catering to the needs of home makers with a range of unique, high quality home wares made accessible to all through our easy to manage payment plan.
b). Identify 2 marketing objectives that you have for the year ahead and explain how they will contribute to your corporate strategic objectives.
• Increase customer loyalty list from 10000-15000m2- An increase in customer loyalty will enable the business to have a significant retail presence in home wares in every capital city
• Establish brand recognition in Brisbane so that at least 1 in 3 people recognize the brand in a random survey taken in 18 months' time- Establishing brand recognition will make current and potential customers to be more aware of the products offered hence making the products to be a national retail brand
c). Identify 3 marketing strategies that you have and explain why you chose these strategies to achieve your marketing objectives for the year.
• Enhancing product features
Marketing is essentially about providing changing benefits to the changing needs and demand of customers. Therefore the business should focus on adding features that will increase the benefit offered to target customers. Due to the increased benefits customers will tend to buy more products hence increasing company sales and also they will tend to buy the products more frequently hence become loyal customers (cousins 1991)
• Penetration pricing
In order to increase sales and market share the business should implement penetration pricing strategy. It involves setting a low price for the products and once the market share has been captured the firm may then increase their prices.
• selective distribution
This is where a small number of retail outlets are chosen to distribute the product where customers are willing to shop around and where the company wants a large geographical spread.
When you were working on your marketing strategies and the marketing plan's marketing mix, did you identify any deficiencies/ gaps in your present capabilities?
These deficiencies/ gaps could be inadequate:
• Skills, knowledge, experience of your staff
a). What were they?
The deficiencies encountered include
• Inadequate finances- There was a limited marketing budget to develop brand awareness due to the lack of critical mass and store cover and also the business Struggled to continually fund the growing long term repayment plans taken out by customers
b). How can you fill these deficiencies/ gaps over the next12 months?
This deficiency can be filled by obtaining a loan from any financial institution that lends the loan at the lowest interest rate in order to reduce the cost of acquiring the debt
c). what budget will realistically need to be allocated to this acquisition of extra capabilities?
Marketing activity Budgeted cost
Selective distribution $400
Personal selling $200
Choose 2 elements (tactics) that you will employ in your marketing plan to achieve some of your marketing objectives.
a). Give some details about the scheduling, costing, accountabilities and persons responsible for these elements.
Tactics Cost Accountabilities Persons responsible
Advertising $300 .draft advertising plan
.carry out market research to learn about customer needs and wants
.write a positioning statement
.select advertising method e.g. email marketing, signs and displays, radio and TV
.evaluate advertising and promotion activity
pricing $100 .carryout a research on competitors prices
.create price lists
.draft the payment terms and conditions Marketing Department
b). Is the forecast cost of these elements reasonable and appropriate within the entire marketing budget for the year? (Justify them in terms of expected results)
The forecasted costs are reasonable and appropriate within the entire marketing budget for the year since through advertising the business will be in a position to make potential customers aware of their products and their offerings relative to competitors. This will lead to an increase in sales and also an increase in the number of loyal customers. Through implementing penetration pricing the business will be in a position to increase its sales and also acquire a large market share hence resulting to an expansion in its operations across all capital cities in Australia (Nicholas 2003)
c). Who will monitor the implementation of, and grade the success of, the scheduled activities (in terms of results and cost relative to budgeted cost) and how often will they report their results to their owners/most senior managers? Can marketing targets be adjusted if necessary?
The department heads are responsible for monitoring implementation of the tactics, grading the success of the scheduled activities and are required to submit a weekly report containing the results to the senior manager
The marketing targets can be adjusted if there are any deviations between the expected results and the actual results. The corrective actions taken may include marketing budget revision, policy changes, personnel changes and culture changing (Chae and Hill 2000)
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