Weighing Up The Past To Improve The Future
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 assess
Показать всеment, 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. Скрыть
Price changes of the brand impacts the sales negatively. This effect can be captured through modeling the price in MMM. The model provides the price elasticity of the brand which tells us the percentage change in the sales for each percentage change in price. Using this, the marketing manager can evaluate the impact of a price change decision.
For the element of distribution, we can know how the volume will move by changing distribution efforts or, in other words, by each percentage shift in the width or the depth of distribution. This can be identified specifically for each channel and even for each kind of outlet for off-take sales. In view of these insights, the distribution efforts can be prioritized for each channel or store-type to get the maximum out of the s
Показать всеame. A recent study of a laundry brand showed that the incremental volume through 1% more presence in a neighborhood Kirana store is 180% greater than that through 1% more presence in a supermarket. Based upon the cost of such efforts, managers identified the right channel to invest more for distribution.
When a new product is launched, the associated publicity and promotions typically results in higher volume generation than expected. This extra volume cannot be completely captured in the model using the existing variables. Often special variables to capture this incremental effect of launches are used. The combined contribution of these variables and that of the marketing effort associated with the launch will give the total launch contribution. Different launches can be compared by calculating their effectiveness and ROI.
The impact of competition on the brand sales is captured by creating the competition variables accordingly. The variables are created from the marketing activities of the competition like television advertising, trade promotions, product launches etc. The results from the model can be used to identify the biggest threat to own brand sales from competition. The cross-price elasticity and the cross-promotional elasticity can be used to devise appropriate response to competition tactics. A successful competitive campaign can be analyzed to learn valuable lesson for the own brand.
1 undertake a cost benefit analysis of the marketing activity and evaluate the marketing activity’s contribution to the work of the marketing department and the organisation as a whole
Marketing effectiveness has four dimensions:
Corporate –company operates within different bounds. These are determined by their size, their budget and their ability to make organizational change. Within these bounds marketers operate along the five factors described below.
Competitive –company in a category operates within a similar framework as described below. In an ideal world, marketers would have perfect information on how they act as well as how their competitors act. In reality, in many categories have reasonably good information through sources, such as, IRI or Nielsen. In many industries, competitive marketing information is hard to come by.
Customers/Consumers – Understanding and taking advantage of how customers make purchasing decisions can help marketers improve their marketing effectiveness. Groups of consumers act in similar ways leading to the need to segment them. Based on these segments, they make choices based on how they value the attributes of a product and the brand, in return for price paid for the product. Consumers build brand value through information. Information is received through many sources, such as, advertising, word-of-mouth and in the (distribution) channel often characterized with the purchase funnel, a McKinsey & Company concept. Lastly, consumers consume and make purchase decisions in certain ways.
Exogenous Factors – There are many factors outside of our immediate control that can impact the effectiveness of our marketing activities. These can include the weather, interest rates, government regulations and many others. Understanding the impact these factors can have on our consumers can help us to design programs that can take advantage of these factors or mitigate the risk of these factors if they take place in the middle of our marketing campaigns.
There are five factors driving the level of marketing effectiveness that marketers can achieve:
1. Marketing Strategy – Improving marketing effectiveness can be achieved by employing a superior marketing strategy. By positioning the product or brand correctly, the product/brand will be more successful in the market than competitors’ products/brands. Even with the best strategy, marketers must execute their programs properly to achieve extraordinary results.
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 marketers can 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:
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.
• 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.
• 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.
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: Скрыть
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