New Marketing Strategy

Questions: Scenario or vocational context Marketing is the link between the organization and its customers. Responsibility for ensuring the establishment and maintenance of a successful interlinking of organization and customers and gain a competitive advantage over major competitors in the market industry lies with strategic marketing management. Marketing Managers are involved with planning; organizing; and strategic control of marketing activity. Marketing Managers must have the skills in choosing a combination of target markets and developing a marketing mix to meet the requirements of those targets in the long term to help sustain the profitability and growth level of the organization. A marketing manager must have strategy in place which is designed to meet the companys marketing objectives. You have just been appointed to a reputable company as a Marketing Manager, during the first meeting with the Chief Executive Officer (CEO), he explained to you that the structures of the company are very strong, with the exception of the marketing department which needs more innovative strategies to make it more proactive and sustainable because the revenue of the company is dwindling in spite of their huge investment in new technology and a vibrant workforce. The quality of the companys products and services has being rated very high by industry analysts. The CEO of the company has mandated you to provide effective and proactive solutions to the following tasks which he thinks will be the blueprint for a launch of a new marketing strategy for the company. Task 1 1.1. Explore alternative organisational design that companies use to manage their complex and far-flung operations effectively1.2. Analyse the criteria for choosing an appropriate organisation structure1.3. Critically discuss different ways of controlling foreign operations profitability measurement1.4. Examine the strategic alternatives for achieving organisational goals1.5. Discuss how to identify an appropriate organisational structures to support globalisation1.6. Assess the importance of developing and maintain effective relationship within an organisation.Task 2 2.1. Critically analyse a framework for international pricing process.2.2. Examine the elements involved in price quotation and consideration of alternative methods of payment.2.3. Analyse major elements of managing a customer orientation2.4. Identify product-related issues and suggest conceptual business approaches for handling them.2.5. Examine the development of advertising programmes for foreign market.Task 33.1. Ev aluate the suitability of international marketing strategies, including standardisation, the market entry options and product policy.3.2. Compare and contrast strategies for export in international market.3.3. Critically evaluate the economic, political, demand related, cultural and risk related issues facing by the organisations entering to international markets and assess their implications for marketing strategies.3.4. Analyse Porters five forces model of industry competitionTask 44.1. Critically evaluate the importance of market segmentation for product positioning4.2. Identify the techniques and criteria for market segmentation4.3. Evaluate marketing strategies towards market segmentation4.4. Identify the value of target market identification and apply segmentation process to position the product of the organisation. Answers: Introduction: As a marketing manager I am asked by the Chief Executive Officer to provide effective and proactive solutions to the various tasks discussed below that will act as a blueprint for the launch of the new marketing strategy. This way effort has been made to prepare an effective and efficient marketing innovative ideas and strategies to give equitable output to the huge investment made in new technology and vibrant workforce. Solutions for new preparing new marketing strategies: Task 1 1.1. The alternative organizational design that companies use to manage their complex and far flung business operations effectively includes the grouping of the people in two forms. The first most commonly used form is functional structuring of the organization process wherein the people are grouped together as per their common function and capabilities. For instance the grouping of accountants, engineers etc in different departments. The second most popular form is divisional form when the people in organization are grouped on the basis of organization outputs. Different divisions are made in different countries so that the employees with different calibers can come together to meet the customer product related demands and expectations. For instance OTIS, the leading elevator and Escalators Company has its divisions in almost every developed country so as that its employees could work according to the demands of the customers. However the use of Matrix structure which is actually a combination of functional and divisional structure is followed so that the organization can take the benefit of the both the methods of organization structure. Efforts are also made to achieve specialization in business through vertical or horizontal integration. Coordination in the business operations is also achieved through bringing unity of command and deciding on span of control(Jayachandran, 2004).1.2. The most appropriate organization structure is one that best balances the needs of the different projects along with the needs of the business operations. The criterion that is followed for choosing an appropriate organization structure includes the followings.a. Clarifying the business ownership.b. Understanding the needs of the business system.c. Considering the kind of business operation followed.d. Decentralization or centralization requirements of the business.e. Adaptability of the business.f. Achieving sustenance for the business.(Kotler Gary, 2006)Furthermore the report ing system in these divisions is kept in both horizontal and vertical manner so that the high level coordination is achieved in the organization activities.1.3. The different ways of profitability measurement includes calculation of the followings.a. Gross profit margins.b. Operating and net profit margins.c. Returns on Assets.d. Returns on Equity.Different methods are also used for controlling the foreign operations profitability measurement which includes the followings.a. Analyzing the issues.b. Designing the framework.c. Developing framework as per requirements.d. Implementing the solution. However, critics are of the view that the controlling of the foreign operations profitability measurement will not help achieves the required goal. Instead of controlling the following of the best suitable techniques for foreign operation profitability measurement which considers all aspects is required to eb done which could help in evaluation process(Malhotra, 2002).1.4. The strategic alter natives for achieving organization goals include the followings.a. Product differentiation:Product differentiation is method through which the company adds an extra benefit or feature in the homogenous product so that the customer can identify its value. This way product differentiation can help the company in getting the cutting edge advantage in the market.b. Diversification of business process:Diversification of the business process through forward or backward integration can help in achieving economies of scale through which the profit margins can be improved. Furthermore the diversification can also be done by starting a whole new business operation completely different from the earlier with a view that the company could survive the down trend in one business operation through the boom in other business operation(Pegg et al., 2014).c. Price focus:In a competitive market where the products are homogenous price becomes the most tempting factor for purchase by the customer. Theref ore the pricing should be done such that the product could easily compete with the other homogenous products of the company(Rao Klein, 2004).1.5. To identify an appropriate organizational structure to support globalization will include the following of the below stated steps.1. Determining the kind of ownership that exists in the organization.2. Recognizing the liability issues.3. Distributing the business operation in different segments.4. Identifying the best method of management style that could help in integration of the whole business process.5. Efforts made to achieve coordination in the business operations.6. Defining the common purpose of the business.7. Recognizing the grouping requirements of the organization.8. Development of the successful organization structure that best suits the requirements.(Samli, 1995)1.6. The importance of developing and maintaining effective relationship within an organization includes the followings.a. Achieving strong teamwork:Effective relati onship brings in teamwork, where every employee work together and back each other to achieve the organization goal and objectives. This way trust prevails in the organization and everyone works for the development and progress of the team to achieve mutual goals than individual or personal goals.b. Synergy effect in application:Synergy effect in application is achieved through the effective relationship within an organization. That is the employees from different background work together with mutual understanding. This effective relationship help develop new ideas and innovations that benefits the organization(Guang Trotter, 2012).c. Effective communication develops within an organization.Effective relationship develops effective communication within an organization. This way the issues and problems are addressed and conveyed well in advance than it becomes a huge problem. Also the employees communicate with the proactive actions and ideas that could help avoid any issue that may r ise in future(Boswell Olson-Buchanan, 2007). Task 2: 2.1. The international pricing process follows the following framework.Step 1: The first step is analyzing and evaluating the Pricing Basics through the Costs, Experience curve, Competition, Demand etc.Step 2: Deciding on the Export Pricing through use of various concepts such as currency risk or credit Risk.Tariffs, price Escalation, dumping, skimming or penetration pricing etc.Step 3: Deciding on the Multinational pricing using concepts like Exchange rates hedging, Transfer price. Counter trade systems pricing. Price Coordinates pricing against gray market and Polycentric pricing.Step 4: Finalizing price.This framework for international pricing can also be displayed as below.(Corta, 1993)2.2. The elements involved in price quotations and consideration of alternative methods of payments includes the followings.a. Price Quotation:1. Name and address of the Seller.2. Reference number of the buyer for inquiry and order placement.3. Product description.4. Pricing of each product in a se parate price catalogue.5. Net shipping weight of the product consigned.6. Requested place of delivery.7. Terms and conditions.8. Validity period for the quotation.9. Net amount due to be paid by the buyer.10. Currency preferred.b. Alternatives of payment available:1. Transfer in bank account of the company.2. Pay pal transfers.3. Credit card payments.2.3. The major elements of managing a customer orientation include the followings.a. Developing products as per customer expectations:The customer orientation can be achieved up to maximum levels by developing the products as per the customer expectations. That is the product consists of the qualities and benefits that a customer expects from a particular product under a good brand.b. Responding swiftly to customer complaints:Responding to the customer complaints in a swift manner and realizing customer suggestions can help in achieving good customer orientation. This way the customers will feel heard and their issues will be addressed properly and on time which will bring loyalty towards the particular product or service of the company.c. Fair pricing policy:The fair pricing policy includes pricing the company products and service in such a way that it brings value for money. This way the fair pricing policy as helps in customer orientation in a better way(Goldstein, 2007).2.4. Various products related issues and related conceptual business approach for handling them include the followings.1. Product labeling and packing:The issue of product labeling and packing in a deceiving or incorrect manner is actually a production error. This issue can be handled by taking care of the functional strategies that will help in reviewing of the production system process so that the same error does not repeat.2. Product handling:The issue of product handling results in destruction of the whole product or its benefits due to mishandling procedures followed during transit. The issue related product handling can be taken care by t aking care of the logistics support that has been followed for the product transit to the market. Therefore the logistics can be directed to take full care of the product quality and packing during transit to avoid any breakage and loss during transit. A corporate strategy that integrates and controls the logistics can be advised to achieve the expected outcome from the business operation(Kotler Gary, 2006).3. Product ingredient related information:The product ingredient related information is required to be stated on the packing of every product as per international laws. The issues related to the product display of ingredients can be incorrect display, or non-display. This issue can be dealt by directing the packaging department to take care of the packing and review the process at regular intervals. Thus a business strategy that could take care of the output will be framed out to get the desired returns.2.5. The development of advertising programmes for the foreign market will i nclude taking following steps.1. Identifying the advertising objectives.2. Recognizing the present position of the company brand in the market.3. Review the customer feedback and response from the advertising campaign.4. Understanding the customer attitude and thoughts towards the product.5. Reviewing the effectiveness of the advertisement campaign through change in sales figures after the initiation of advertisements.6. Recognizing the gaps that requires to be filled in the marketing. Task 3: 3.1. The suitability of the international marketing strategies is actually a method of achieving the best and most appropriate outcome through the marketing methods such as advertisement and promotions. It includes the following features.1. Standardization:Achieving a definite standardized level in the product formation can help in fulfilling all the statutory requirements of the business in the legal and social environment. This way international marketing requires the pre-requisite for the product to follow minimal requirements so that it meets the safety and expected requirements of the customer(Wedel Kamakura, 1998).2. Market entry options:The market entry options for a new company can be placing products and services after the recognition of the customer desires and expectations. This way the customer orientation can help in bringing out the most useful and value for money carrying products and services that could help in achieving the desired sales.3. Product policy;Product po licy consists of strategic rules that could help in the promotion of the products and services to the customer. In the international marketing strategy application the product policy can help in recognizing the potential customers so that their demand and expectations can be met and the desired sale of the product and service can be achieved.3.2. The various strategies for export in international market include the followings.1. Executing a marketing action plan:A marketing action plan consists of defining the goal and objectives of the business so that the appropriate strategies can be developed and executed to achieve a definite level of outcome in the form sales growth and increased profits for the company. The marketing action plan therefore consists of planning for strategies according to the business environment. This way the change business environment in the international markets can be dealt as per the marketing action plan. This strategies for export in international marke t has proven beneficial than any other strategy.2. Developing pricing strategies:Pricing strategies helps in the international business to place products and service as per the expectation and budgetary constraints of the people. This way efforts are made to achieve value for money so that the customer feel satisfied with the product quality and output in comparison to its pricing. Pricing strategy helps in giving more effective outcome than marketing action plan as it brings the products and services under financial budget of the customers.3. Online marketing:Online marketing is the latest strategy for export in international market in which products are advertised and advised for sales through online mediums such as emails, online ads etc.. This method helps the customers to stay at their comfortable place and decide on their purchase of product and service through online modes. This strategy is more beneficial than the pricing strategy and marketing plan as it facilitates the cus tomer to select the required product and service just on a click. It also helps the customer to compare the pricing and quality through online comparisons(Aseisdefimedia, 2011).3.3. The various issues faced by the organizations entering into international markets includes the followings.a. Economic:The economic condition of the country includes the Gross Domestic Product of GDP along with growth rate. These conditions directly affect the customer buying trend which is observed through the availability of the disposable income with the people. The marketing strategy can be to place the cost effective and high output products that could help in achieving sales growth for the company products.b. Political:The good political conditions include the political stability in a country that offers due climate for the organizations to grow and prosper. The political conditions which confirm peace in the society with no warfare and aggressive activities support the growth and prosperity of the business. The marketing strategy would be therefore to initiate operation in the country which has record of years of political stability.c. Demand related:The demand of already established brands brings out great competition to the new company in the international market. Therefore the marketing strategy should to promote the products and services of the company through various promotional activities so that the demand for the company goods can be increased.d. Cultural:The cultural activities of the country can support the business of the international firm by placing goods and services that are useful and easily acceptable. Therefore the marketing strategy would be to place goods and service as per the customer expectations and requirements(Butkeviciene et al., 2008).e. Risks:The different risks to the international business include competitor rivalry and substitutes that could add to the problems of the company. Therefore the marketing strategy should be aggressive enough to tack le with the problem of competition and the goods should prove much worth than other competitive products so that the customer prefers the company products.Critics are of the view that the marketing strategies require the right selection and application so that the desired outcome is achieved.3.4. Porters five force model of industry competition includes identification of various factors that affect the business. These includes the followings.1. Competitors rivalry within industry.The competitors rivalry within industry includes the pricing policy, marketing strategies and various associated business transactions that affect the organization business directly or indirectly. The competitors rivalry therefore affects the profitability and sustenance of the business. The company therefore requires to take into consideration all the competitors before entering international market.2. Threat of substitute.The threat of substitute includes the availability of homogenous products in the mar ket. This way the presence of homogenous product with similar features available at competitive prices affects the sale of the companys product and services. Therefore the company needs to identify the possible substitutes available in the market for planning a productive and useful pricing policy.3. Threat of new entrants.The threat of new entrants who offers similar products at low prices either by compromising quality or any other factor. This way the new entrants can effect the sale of goods and services by offering cutting edge competition to the business. This way the company needs to work hard to achieve economies of scale so that the new entrants cannot prove threat to the company business(Kotler Gary, 2006).4. Bargaining power of Buyer.The bargaining power of the buyer increases if the number of companies in the market selling homogenous products is higher. Therefore the company entering international market requires to identify the number of other businesses selling simil ar products and services so that the pricing policy and product differentiation can help in achieving better sales for the business.5. Bargaining power of supplier.The bargaining power of the supplier increases when the number of suppliers of raw material are less in number. Therefore the company entering international business should make agreements and deals with the suppliers so the consistent supply of raw material is achieved and local suppliers cannot affect the business output and gains. Task 4: 4.1. The importance of market segmentation for product positioning includes the followings.1. Identification of the potential customers.2. Grouping different set of customers on different basis or segments.3. Positioning various products and services of the company as per the customer expectations of different segments.4. Different products are placed for the different market segment.5. Achieving the customer satisfaction of different segments.(Snower, 1996)The critics are of the view that the basis of market segmentation does not help in identifying the potential customers. Also the grouping requires proper analysis of each and every customer so its rather a time consuming job. Finally the product positioning requires to be made with the promotional activities to achieve success in the market which helps in organization goals and objectives. This success may not achieved by the marketing segmentation itself.4.2. The technique for market segmentation includes the followings.1. Psycho graphic segmentation:It includes segmentation on the basis of personality, lifestyle, attitude and class of the customers in a region.2. Geographical segmentation:It includes the segmentation on the basis of customer location, region etc.3. Behavioral segmentation:It includes the segmentation on the basis of rate of usage, benefits sought, loyalty status, ability to purchase etc.4. Demographic segmentation:It includes the segmentation on the basis of age, gender, occupation, socio-economic group etc.The criteria for market segmentation include the followings.1. The market segment should be large enough to be identified.2. It should be able enough to help the organization achieve organization objectives.3. It should have enough population that can make huge impact and difference to the business.4. It offers chance to reach out to the potential customers.5. It responses accordingly to the market positioning process that is followed later on.6. It helps in deciding policy for marketing mix.(Guang Trotter, 2012)4.3. There are actually two marketing strategies that are used towards market segmentation. The first is concentration strategy and multi-segment strategy. In concentration strategy the company makes efforts to affect one particular market segment. This way it helps in fostering the specific needs of a definite market segment. However in multi-segment strategy the company makes effort to affect two or more market segments. This strategy helps in meeting demands of customers of different market segments in the following ways.a. The customer loyalty with an already established brand creates issues for the new entrant company.b. The customer taste and preferences affects the sales of the product as purchase decision are based on the earlier experiences.c. Customers mostly rely on the quality output in the present day world. Therefore the company needs to develop its products as per their expectations.d. In the present slow economic conditions the customers pr efer to buy products at competitive price that brings value for money. This way the pricing policy of the company needs to be reviewed and tested before fixing price of any product so that its sales can be assured.(Malhotra, 2002)4.4. The value of target market identification helps in achieving following benefits.1. Concentrating on the needs of specific customers.2. Making products as per the needs of the definite set of segments.3. Achieving customer satisfaction.4. Promoting and placing products in the most desired way in specific market.5. Tempting the potential customers for making purchase of goods and services.The application of the segmentation process to position the product of the organization includes the followings.1. Identifying the target customers.2. Recognizing the specific needs of the target customers.3. Making products and services as per the customer demand.4. Meeting customer expectations.(Samli, 1995)Therefore the benefits that can be achieved include the follo wings.a. It helps in achieving customer service management through on time delivery of goods and services.b. It helps in meeting the demand of the customers through the application of the demand management process.c. It helps fulfills the performance related requirements through performance management process in action.d. It brings seamless and consistent flow in manufacturing through manufacturing flow management process.e. It help achieve customer satisfaction through the application Customer relationship management.f. It helps in on time receiving of goods through good supplier relations with application of the concept of supplier relation management:g. It help brings required product development:h. It assists in on time and accurate order fulfillment.(Jayachandran, 2004)4.5. The emerging issues in the international marketing include the followings.1. Economic slowdown:The Economic slowdown has resulted in declining the disposable income available with the customers. This has led to decline in sales as per the estimation which is affecting the profits and sustenance of the business in international markets.2. Government regulations:Government regulations differ in different countries. This has resulted in increasing paper work and regulatory requirements that has added to the issues and problems of the companies doing international business.3. Bureaucracy and red tapism:The bureaucracy and red tapism in the developing nations has added to the problems of international business. This has resulted in causing unnecessary delays in the project initiation and development for the business operation in these countries.4. Rising competition:The rising competition in the international markets with the coming up of new multinationals has resulted in affecting sales and profits of the company.(Caniels Gelderman, 2007) Conclusion: In the end the above discussed can become the blueprint for the development of the strategies and innovative ideas for the progress of the marketing efforts and investment made by the company. This way the marketing department will be able to achieve its estimated goals and objectives through the newly refined strategies. Bibliography Aseisdefimedia, 2011. "The difference between market intelligence, business intelligence and strategic intelligence". [Online] Available at: https://youtu.be/tvT1f6H7ADM [Accessed 12 October 2014].Boswell, W.R. Olson-Buchanan, J.B., 2007. "The Use of Communication Technologies After Hours: The Role of Work Attitudes and Work-Life Conflict". Journal of Management, 33(4), p.592.Butkeviciene, V.J., Stravinskiene Rutelione, A., 2008. 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