Marketing management

Nokian Tyres


Weighing Up The Past To Improve The Future
Background
Given the constraints on marketing expenditure brought about by a global economic slowdown, you have been asked by the Marketing Director to critically analyse the processes that were applied to a marketing activity which has been fully implemented in the last twelve months. The aim of this review is to evaluate what contributed to the effectiveness, success or failure of the activity. This information will be used to make an assessment of performance management, and supporting systems and procedures, within the marketing department, in order to drive improvements for future marketing activities.
It is recognised that individuals taking this assignment come from a variety of backgrounds. The nature of this assessment, however, allows candidates who do not work directly in a marketing department to review a department either in their own or another organisation, with a view to understanding how it could be made more efficient and effective.
It is acceptable to recognise that marketing may be the role of one person within the organisation, be devolved to parts of the organisation, be partially outsourced or consist of some combination of these approaches. Regardless of what is currently in place, this assignment provides a set of circumstances and constraints that could be applied to any organisation, and on this basis candidates can demonstrate what they would or could do, given the opportunity.

Marketing management

2. Marketing Creative – Even without a change in strategy, better creative can improve results. Without a change in strategy, AFLAC was able to achieve stunning results with its introduction of the Duck (AFLAC) campaign. With the introduction of this new creative concept, the company growth rate soared from 12% prior to the campaign to 28% following it. (See references below, Bang)
3. Marketing Execution – By improving how marketers go to market, they can achieve significantly greater results without changing their strategy or their creative execution. At the marketing mix level, marketers can improve their execution by making small changes in any or all of the 4-Ps (Product, Price, Place and Promotion) without making changes to the strategic position or the creative execution marketerscan improve their effectiveness and deliver increased revenue. At the program level marketers can improve their effectiveness by managing and executing each of their marketing campaigns better. It's commonly known that consistency of a Marketing Creative strategy across various media (e.g. TV, Radio, Print and Online), not just within each individual media message, can amplify and enhance impact of the overall marketing campaign effort. Additional examples would be improving direct mail through a better call-to-action or editing web site content to improve its organic search results, marketers can improve their marketing effectiveness for each type of program. A growing area of interest within (Marketing Strategy) and Execution are the more recent interaction dynamics of traditional marketing (e.g. TV or Events) with online consumer activity (e.g. Social Media).
4. Marketing Infrastructure (also known as Marketing Management) – Improving the business of marketing can lead to significant gains for the company. Management of agencies, budgeting, motivation and coordination of marketing activities can lead to improved competitiveness and improved results. The overall accountability for brand leadership and business results is often reflected in an organization under a title within a department.
5. Exogenous Factors - Generally out of the control of marketers, external or exogenous factors also influence how marketers can improve their results. Taking advantage of seasonality, interests or the regulatory environment can help marketers improve their marketing effectiveness.
The analysis shows that the system of marketing influence (marketing communications) the enterprises is calculated as on informing of intermediaries and stimulation of sale small, and on the individual consumer.
With a view of influence on participants of the market, enterprise management uses following elements of system of marketing communications:
Advertising
Sale stimulation;
Personal sellings;
Public relations.
The greatest expenses in marketing sphere have on carrying out of publicity, stimulation of sale, public relation. On elements of personal sellings and formation of public relations enough small volume of money resources both in absolute, and in a structural cut goes. The given situation is caused by inactivity of system of a planned distribution of the marketing budget on the basis of the analysis of degree of efficiency of communication influences in the accounting periods.
Studying of system of marketing communications allows concluding:
1. The Communication system is absent;
2. The Technique of planning of system of marketing communications and its elements is absent;
3. Marketing communications use Elements not in a complex.
4. The Basic element by means of which management stimulates sale is assistance to sales (SP).
System SP is focused on constant clients and wholesalers, its purpose to make active demand for the goods. Proceeding from a role and the importance of the price factor, the basic stimulus used by management are – financial. Next ways are used.
Wholesale link:
• Discounts for a turn (bonus) depending on the reached volume of purchases during certain term;
• Single discounts;
• Memory discounts;
• Possibility of acquisition of the goods on account of wages (a version of the commodity credit) is given to trade unions of the various organisations.
Retail link:
• Single discounts;
• Memory discounts.
The second element used by management for stimulation of sale, advertising is.
The enterprise spends for advertising from $ 80 to 100 thousand . that makes 0,1 % from the gross revenue. The given indicator is low enough.
Task Five
1 critically evaluate the success or failure of the marketing activity, using key performance indicators, identifying how key challenges and issues were addressed
The advertising directed on formation of image of the enterprise is absent.
Thus, the existing system of use of advertising is ineffective.
Influence element it is direct on the consumer personal sellings act.
Firm service assumes, first of all, use of the lichnostno-focused service concerning clients.
Goodwill, friendly tone, optimism, knowledge of constant clients, high professionalism - basic elements of the given type of service. The buyer who has come to shop meets приве¬тливое the relation from outside the trading personnel. Thus, the favorable impression is left by tidy appearance of workers of shop, an order and cleanliness in a trading floor.
Hence, the basic problem of efficiency of use of system of public relations consists in operating system of the organisation and activity planning in the given sphere.
Such questions of planning and the organisation of public relations as are not effectively solved:
• Definition of methods of achievement of the purposes of public relations for an exchange of the formulation of the purposes on creation of a business image of the company is not present the concrete program of actions: who, when, as how will reach this purpose;
• Owing to absence of the thought over program there is no schedule and a plan of measures that leads to impossibility of maintenance «constant presence of the company at an information field»;
• An essential lack of planning and the activity organisation of sphere of public relations is absence of system of an estimation of efficiency of use of public relations;
The basic channels of influence in sphere of public relations are:
Own personnel;
Consumers;
Suppliers.
Use of elements of propagation from a position of public relations the company are insignificant by quantity and quality. At the same time, it is necessary to notice that with a view of creation of an image of the company the company undertakes a number of efforts on propagation of activity of firm in a number of printing mass media. However these actions incidental, single, do not allow to tell «effect of constant presence» about formation.
The basic efforts the marketing service of the company undertakes «corporate style creations» in questions. Strengthening of competitive struggle, consideration of all population of a city as a potential consumer segment, has predetermined perfection of this element.
Task Six
identify available options to improve performance management, and propose key recommendations for their introduction, based on your findings.
The main way of improvement is creation of firm retail trade. Proceeding from high efficiency of firm retail trade, it is necessary for enterprise to increase the given potential by expansion of already available retail trading. Such strategic decision is caused such important, for today, advantage to the enterprises of the given profile, as timely receipt of available funds at their considerable concentration on the retail channel.
Other main advantage of the firm retail channel of distribution is possibility of reception of additional profit by the trading margin.
The enterprise, realising production to the wholesale buyer, gets profit at a rate of 13,2 % from the full cost price of the goods whereas at retail the enterprise provides profit at a rate of the trading margin of 15,9 % from a cost price plus the initial sum of profit, that is in process of increase in taxes there is an increase of final profit that it is necessary to consider also.
Besides, it is necessary to pay attention to the fact of enough low estimation of given service. By results of tracing supervision permissibly to draw a conclusion that as one of a determinant presence of "bottlenecks" in an operating technique of retails, in this case, acts.
Retail shops of the company concern the enterprises with sale of the goods through a counter that, first of all is defined by a trading floor lay-out. The buyer who has come to shop meets the affable relation from outside the trading personnel. Thus the favorable impression is left by tidy appearance of workers of shop, an order and cleanliness in a trading floor.
After revealing of intention of the buyer the seller - the adviser shows the corresponding goods. Thus, he pays attention to features of the separate goods, offers instead of absent other homogeneous goods. Duties of the seller include also the offer to the buyer of the accompanying goods.
Sale of the goods by calculation with buyers and delivery of purchases comes to the end by it. These operations it is carried out on a workplace of the seller-cashier.
Practically there are no ruptures of expectations of buyers with the system of service presented in shop on following aspects:
Valid enough relation to clients from outside employees of a trading floor, aspiration to pick up the products most suitable and corresponding to tastes is marked;
It is not observed any delay in the course of registration of purchase in the presence of that fact that each visitor is served individually;
Punctuality of workers concerning a shop operating mode.
But thus it is necessary to note a number of the factors reducing an estimation of level of service on which the emphasis of from outside interrogated has been placed.
Inconveniences in connection with a choice of the goods and possibility of close acquaintance take place. Thus, for the reasons of features of a personal warehouse of character not each visitor dares to involve the seller – the adviser till the moment of a definitive choice and decision-making on purchase.
In this connection, I offer to approbation and the subsequent introduction a method of sale on the basis of self-service.
Self-service allows to accelerate operations on sale of the goods, to increase throughput of shops, to expand volume of realisation of the goods. This form provides an easy approach of buyers to the goods laid out in a trading floor, possibility independently to examine and select them without the aid of the seller that allows to distribute more rationally functions between workers of shop. Payment for the selected goods is carried out in the check-outs served by controllers - cashiers. At self-service the technological lay-out of a trading floor and other premises of shop, the liability organisation, and also functions of workers of shop change.
In supermarkets of function of workers of a trading floor are reduced basically to consultation of buyers, the calculation of the goods and the control over their safety, performance of settlement operations.
Sale of the goods by means of self-service is more convenient in comparison with traditional methods as many buyers have possibility simultaneously to familiarise with opened the goods, without distracting thus sellers on performance of the functions connected with display of the goods and the information on their assortment.
Along with traditional channels of distribution now the increasing value gets a trade channel - the Internet and its main service www (world wide web) which any enterprise in modern conditions should use. The Internet represents the first realisation of the hypermedia environment mediated by computers which possesses unique possibilities for advancement and represents itself as two basic elements:
• First, the Internet — the new communication medium represented by communication model "many-many". Besides, the Internet is hypermedia way of representation of the information, is considerable different from traditional mass media the interactive nature, high flexibility and scalability.
• Secondly, the Internet — the global virtual electronic market which does not have any territorial or temporary restrictions, allowing to make the interactive I will amaze the goods without distribution firms.
Production sale through the Internet (one virtual representation) will allow not to open new shops, that is to cut down expenses on production realisation.
Appendix
1 Provide a brief background to your organisation, its customer base, position in the market and product/service range (up to a maximum of two sides of A4).