Free Sample: Marketing management paper example for writing essay

Marketing management - Essay Example

NC is still a small size and also an unknown brand. To hit the market in china, the ranging strategy decision process become very important. Hong Kong, a financial center and tourism city for china, return from the United Kingdom to china back in 1997. Hong Kong become a window and an opportunity for a lot of international brand to enter the large Chinese market. Therefore, NC must use Hong Kong for their first stage, in the coming 3 years, NC must focus on develop a brand of products that fit in to entering the China market.

So, understanding the Chinese market become an important part of strategy planning. For example, the customers’ background, culture, purchasing pattern, behavior etc. Introduction of NC nutritional supplement retailers. Our first store was opened in 1935 in Pittsburgh by David Sharing. Originally called “Lockwood”, the NC (General Nutrition Center) name was born in 1960. We started selling our own ranges of vitamins and mineral supplements later that decade. NC come a long way since those humble Pittsburgh beginnings.

NC is now the world’s largest health retailer, with over 6,000 stores in 50 countries across the globe! NC been in Hong Kong since 2003 – and by late 2008 we had 9 specialist stores, plus specialist counters and stock in Meanings Stores cross the territory. In Just five years we’ve established ourselves as one of Hong Gongs leading health supplement brands – and we’re always working to get even bigger and better as we help everyone live their best life. NC committed to quality. NC only uses the best ingredients and employs rigorous quality assurance testing and manufacturing standards.

NC subject products to up to 150 quality checks before they arrive on our store shelves and all our ingredients are issued with a Certificate of Analysis. NC products are packaged in safety-sealed tamper-evident snacking and go through a series of checks before they’re put onto the shelves. This series of checks and balances ensures that NC products are the safest and most efficacious supplements on the market. 2. Current situation and trends 2. 1 Background information of the market – China and Hong Kong public health: China has a high demand in quality international supplement brand.

A brief history that China is undertaking a reform on its health care system. And in the past 50 years, China had made great achievements in controlling infectious diseases and improving the publics health and hygiene. However, in the September of 2007, nearly 80 presents of the whole rural population of China had signed up (about 685 million people). The population in question can be as small as a handful of people or as large as all the inhabitants of several continents (for instance, in the case of a pandemic).

And owing to the negative effects brought on by aging of the population and the burdens of diseases, arbitration, industrialization, and globalization, Chinese public health officials are encountering greater difficulties than ever. The operating models of public health are old and that cannot meet present requirements. The main problems at that time are poor capacity to respond to public health emergencies, severe inequality of health care services, and lagging development of public health information systems.

The public health in China can gradually meet the requirements of social development and the increasing public demand for health care services only when the public health is directed by informational, globalization, detoxification, and humiliation. 2. 12 Background information of the market – Healthy trend in china Sources: WHO – china health profile As arbitration and industrialization continue to grow and the living standards of undress of millions of people increase as a consequence. 2. 2 competition 3. Direct Competitor Comparison NC AMAZON WAG Industry Market Cap: 4. B 142. BIB 109. BIB Employees: 6,100 1 17,300 130,000 Story Rev Growth (you): -0. 03 0. 20 0. 10 0. 00 Revenue ™: 2. BIB 85. BIB 135. BIB Gross Margin ™: 0. 38 0. 29 0. 19 EBITDA ™: 499. MM 3. BIB 10. BIB Operating Margin ™: 0. 17 0. 06 Net Income ™: 251. MM -21 5. MM 4. BIB PEPS ™: 2. 72 -0. 47 3. 87 PIE ™: 17. 09 24. 55 PEG (5 yr expected): 1. 67 -8. 55 1 . 44 ™: 1. 59 1. 69 0. 82 AMAZON = Amazon. Com Inc. C.V. = C.V. Health Corporation WAG – Industry = Drug Stores 3. 2 macro-environment 2. 31 size and growth rates 2. 2 key market segmentation 1 . Geographic Segmentation I. Countries – For centuries China stood as a leading civilization, outpacing the rest of the world in the arts and sciences, but in the 19th and early 20th centuries, the country was beset by civil unrest, major famines, military defeats, and foreign occupation. After World War II, the communists under MAO Sedona established an autocratic socialist system that, while ensuring China’s sovereignty, imposed strict controls over everyday life ND cost the lives of tens of millions of people.

After 1978, Mayo’s successor EDEN Gapping and other leaders focused on market-oriented economic development and by 2000 output had quadrupled. For much of the population, living standards have improved dramatically and the room for personal choice has expanded, yet political controls remain tight. Since the early sass, China has increased its global outreach and participation in international organizations. GAP $13. 39 trillion (2013 est.. ) country comparison to the world: 3 $12. 43 trillion (2012 est.. ) $11. 54 trillion (2011 est.. ) toe: data are in 2013 US dollars $9,800 (2013 est.. Country comparison to the world: 121 $9,100 (2012 est.. ) $8,300 (2011 est.. ) IL. Languages Standard Chinese or Mandarin (official; Photograph, based on the Beijing dialect), Hue (Cantonese), Www (Shagginess), Imbibe (Fuzz), Minoan (Hookier-Taiwanese), Axing, Gang, Hake dialects, minority languages (see Ethnic groups entry) Note: Chuan is official in Axing Chuan, Hue is official in Gudgeon, Mongolia is official in Nee Mongol, Guru is official in Gaining Augury, Gorky is official in Gaining Guru, and Tibetan is official in Gazing (Tibet) 2. Demographic Segmentation I.

Age total: 36. 7 years male: 35. 8 years female: 37. 5 years (2014 est.. ) Our product target aim at 18-47 it. Occupation All occupation are target iii. Education level Junior High school to PHD education level are target. 3. Behavioral Segmentation I. Attitude toward People who want to maintain their health it. Usage rate A daily consumption product iii. Loyalty status High 4. Cryptographic Segmentation I. People activities In china, people love sports. It have a very long history and rich culture in sport. The national quadrennial multi-sport event similar to the Olympic Games.

Football, maybe invented by the Chinese, is the number one sport in China, the market is highly involved by the Chinese people, the market size and the money that is in football is a lot of money. Some top athletes had quit at the height of their careers because they were uncertain about life post retirement. The professionalisms of sports has encouraged the emergence of a sports management market and business-structured systems. Sports club operations now cover ticket sales, advertising, club transfers, commercial matches, television broadcasting and other commercial activities.

Another aspect of the reform is that some Chinese athletes have Joined foreign professional leagues. Such as basketball NAB hall of framer, retired NAB star Way Mining is a really big influence in China, not Just in basketball, but in all kinds of area like Way Mining restaurant, Way Mining basketball club, Way Mining health products Etc. There are concerns in china. Pollution is a huge problem because of the industrialization benefit the economic growth. “Suffering from pollution and traffic has led to a very strong demand for leisure and outdoor activities where one can enjoy clean air and water.

There is a growing appetite for sustainable development and getting back to nature, which we can benefit from,” explains Kafka Chine, General Manager for Aimer Sports’ Outdoor Sports in China. Changes in the marketplace Along with the dream of a healthier and more active life, the business and retail environment is shaped by changes in the infrastructure and the digital world. Rapid reaction to market changes is needed in order to stay ahead of the game. “One phrase that I have been using for years is ‘To succeed in China, we need to become vertically capable with the brand’.

This means that we need to be fully competent inside the whole value chain, from brand positioning to communication with consumers, from choosing the right product line strategy to the development of the most effective retail formats, manage not only the sell-in but also the sell-thru with full commitment,” Kafka continues. Building brand awareness Besides the value chain, brand building is also important. As in most developing markets, the demand for quality brands is high in China as well, especially among the more educated people. In building brand awareness, Kafka mentions the importance of opening own retail stores in strategic locations.

Social media presence and digital marketing is also something that the team is investing heavily in. 5. Segmentation by benefits I. Benefits sought by consumer Multivitamin supplements are commonly provided in combination with dietary minerals. A multivitamin/mineral supplement is defined in the United States as a supplement containing 3 or more vitamins and minerals that does not include herbs, hormones, or drugs, where each vitamin and mineral is included at a dose below the tolerable upper level, as determined by the Food and Drug Board, and does not present a risk of adverse health effects.

Free Sample: Marketing Management paper example for writing essay

Marketing Management - Essay Example

Company is used as a product category for consumers to determine the culture influence in the China market and how KEF position itself within the local Chinese environment. From the research it is evident that KEF chine has gradually increased its market share since its operation in China by the year 1987 with 20% of profit margins and has annual revenue of $1 million only in China market therefore out performing all of its competitors in the fast food business. This is achieved through competitive positioning in which KEF has localized itself through its menu and including Chinese language in order to meet the needs of the consumers.

Furthermore the report shows that KEF china not only has customized the menu but it also celebrates with all people from different culture. The spring festival is the most commonly celebrated in the beginning of Chinese New Year. With this, new 20 products are implemented every year tailored towards the local tastes. KEF has also able to meeting the eating habits of Chinese consumers who values family dining a norm. Other factors that, this report elaborates is the leadership and culture and their contribution success factors of KEF china. Therefore it is recommended for

KEF to also include local Chinese in the leadership team as they better understand the Chinese culture and subculture thus increased sales. Although it is successful in china, KEF should increase more outlets since they now better understand the culture of Chinese and have adapted well within the region. 2. Introduction In today, s’ business world, business are want to create competitive advantage due to intense competition that occurs. Therefore marketers of the businesses have to cater for their consumer’s needs by understanding consumer’s decisions when purchasing a product or service (Smith & Fisher).

Consumers are faced with competing companies offering a variety of goods or services therefore, decision and the factors impacting their behavior should be clearly analyzed. According to (Darrel, p. 96, 2010) “consumer ‘s decision are often made through five stages which include; need recognition, searching information, evaluating alternatives , post-purchase behavior and purchasing decisions”. However marketers should focus on the whole buying process rather than the purchasing decision only. Internal and external characteristics are the main factors which influences the consumers purchase decision and behavior.

The internal characteristics comprises of personal and psychological whereas external characteristics includes cultural and social factors. In this research context, the emphasis is on one variable of any choice thus culture will be discussed as an external variable. 3. Consumer behavior Geol. & Hofmann (2010) Consumer behavior is defined as the process through which the buyer makes purchase decision across various products/ services. It is the behavior shown by the consumers while buying and using the products or services which satisfy their needs and desires.

Therefore it is vital for marketers to develop understanding and to know reasons the reasons why consumers purchase certain goods and services. With that information, they can able to know the needed products and identify the best ways to present the goods to the consumers in the market place. Consumer behavior further tries to understand process of buyer decision making and characteristics of individuals such as personality and preferences are learnt in order to understand the consumer ‘s wants(Billie, 2009).

It further evaluates factors which influence consumers such as the society, family and friends and also it allows companies to adopt relationship marketing. Cultural influences are an external major factor which influences consumer s behavior. 3. 1 THE BUYER DECISION PROCESS Figure 1 : Source: (Buyer Decisions, Kettle, 2009) Fig. 1 indicates the purchase decision process and what a buyer encounters in the choice making process regarding the type of goods or services to buy and this process is in stages. Problem recognition- at this stage buyers identify what they need to purchase in comparison with their needs and wants (Sinai, 2011).

These needs can be influenced mostly by internal factors which are personal and psychological. Also marketers sometimes stimulate the need by providing information about the product. For example, an advertisement about new clothes can stimulate the consumers recognition that the need new clothing Information search- after they identify their needs; consumers have to now source for information of what they will purchase (Lee & Carnage, 2010). Searching information could be external (word of mouth) or internal and if the search is a success the buyer is left other alternatives (evoked sets).

The information search can be on low -velveteen purchase or high velveteen. Evaluation of alternatives- this is the stage whereby the buyer evaluates the options available. With the information search gathered the consumers are able to know what they want and what they do not want. Comparison of brands is made based on price and quality factor during the process. Purchase decision – it the stage whereby the buyer has concluded on the best choice brand to purchase after evaluation of the alternatives. The decision could be made based and the product, packaging or services.

Ghana & Wang (2012) discussed that, attitudes from people close (significant others) to you such as friends can influence this decision. For example, a consumer deciding to eat KEF informs their friend and in turn the friend will persuade them to buy Kenny Rogers as it offers healthy meals; therefore the consumer is likely to change their initial decisions made. Another factor which influences the purchase decision is the unexpected situations Post Evaluation- purchase it is determined by two outcomes which is satisfaction or dissatisfaction which evaluates the decisions.

The consumer evaluates if the decision made is right or not (cognitive Dissonance) and therefore marketers can reduce this behavior by offering warranties, after sales services, coupons and rewards points(Roberts, 2011). 4. CULTURAL INFLUENCES Effect of culture on consumer behavior Culture determines the way people live and it is usual dynamic depending on societies. It is a way of life, which comprises of the core values, traditions, attitudes, language, peoples’ tastes and preferences and it also communicates the thoughts of the society (Francis, 2013). It also includes artifacts, sign and symbols.

It is a broad aspect that determines the consumer’s behavior thus marketers have to understand its key role on consumer’s decision. Changes in the trend and cultural values & norms should be monitored and recognize by marketers so they can satisfy their customer’s needs and determine the business and marketing strategies which work well and effectively (Ross & Diane, 2011). However, these changes vary from country to country so marketer should pay attention to things that are offensive or not. Therefore, there is a need for new product development if there are any changes in the cultural shift. (Palmer et al. 012) mentioned that, “Another element that makes up culture is beliefs as people in the society usually show some similarities, for instance eight symbolizes wealth in a Chinese culture therefore anything that has to do with the number indicates prosperity’. Non-behavior of individuals is related to tradition, which marketers have to understand in a competitive environment. As a result, marketers have to learn the culture factors in analyzing the consumer’s behavior as it has been a crucial aspect of market segmentation, positioning, and target market (Kim, 2011). 4. 1 Subculture Cultures are different entities which have different values.

This means each culture consists of smaller groups known as subcultures. These groups have distinct modes behavior of their own and therefore marketers need to understand the difference between these groups so they could effectively develop more strategies. Subcultures are formed through geographic regions, ethnicity, gender groups and religions and usually preferences vary depending on how people live with each other (Russell, 2009). Brands usually consider these groups for the market segmentation so that they can adopt the product or communicate the strategy for particular needs of the segment. . OFFSIDE’S CULTURAL DIMENSION (Moving, 2011) mentioned that, Hefted is the theory model regarding the cross ultra which helps business to understand how different nation culture is in various countries. The framework is applicable for advertising, ethics (decision making) and global brand strategies. Hefted (1980) model comprises of the key five dimensions of culture: Uncertainty Avoidance, Masculinity/Femininity, Power Distance, Individualism/Collectivism and Long Term/short Term orientation. Figure, 2. Source 🙁 E-Business Review, 2009) Fig. Illustrates the five cultural dimensions of Hefted which acts as a guide for assessing a particular culture and decision making. Power distance- it focuses on inequality of power across countries within companies. Power distance further analyses people’s feelings within the society and the low power distances views power relations as equals. Individualism versus collectivism-discusses how individual societies tend to be focused on themselves than the group while on the collectivist side it’s all about the whole group (society) with cohesiveness and they are strongly integrated.

The uncertainty avoidance- is all about the society tolerance for uncertainty and ambiguity with cultures of high index having less tolerance of changes and there is rigid laws implemented. For the societies with low index there is flexibility, embracing change and having fewer laws. Masculinity versus femininity- basically is all about genders and how emotional roles are distributed. Stereotyping is measured on this dimension and its importance on culture and masculine factors covered include materialism, ambition and power.

Feminine values are more focused in human relationships and societies with high masculinity usually have lots of gender difference and there is more competition (Powell & Dainty, 2009). However, the cultures that have low masculinity possess less gender differences and building legislations is vital. Long term versus short-term orientation-let discuss the horizon time of the society whereby cultures who are short term oriented regard methods which are traditional, relationship building is a long term. This type of society believes in doing things through interconnecting the past and the future.

Oppositely, short-term cultures always looking forward and the past or present is not considered. It is all about attaining goals and rewards are highly valued Cohn, 2011). Indulgence versus restraint- in this dimension the culture is supposed to be able to satisfy immediate needs and the member’s personal desires. Cultures that are restraint are characterized stricter social rules and norms. 4. Culture and Marketing Marketers of multinational companies should consider cultural differences when doing business across the borders with planned marketing strategies.

Understanding consumer s behavior, firms are able to finalize that marketing mix decision. These marketing mix comprises of four variables which includes, product, place, promotion and price and they have impact on the marketing decisions as they determines the rate of demand for products/services. Cookery & Gloria (p. 0, 2011). For promotion variable it shows marketing tools required for promoting the business such as direct selling, advertisements, promotions and publicity. The place determines where your business can be find, distribution channels and warehouses.

As for price, factors such as the discounts mark up sales, allowances are important and the product itself it the main determinant of consumer’s buying decisions and is usually hard to adapt (Peter, 2013). The product should consider quality, packaging, size and branding. Multinationals are now developing cultural product positioning strategies on cross ultra basis. Therefore in order to gain competitive advantage these companies are employing competitive positioning to differentiate themselves and creating value in the market. Lucas, 2011) Stated that, “competitive positioning is about, carving out a spot in competitive environment and making sure the company deliver on the strategy’. That, is to say, it assist companies to gather information about the market segmentation and therefore making better decisions. A viable competitive strategy includes the company s market profile which specifies the business rivals, size and the growth stages. An effective competitive strategy also should analyses the strengths, opportunities, threats and weakness(Adam & Michael, 2010).

The positioning strategy and value prepositions are part of a good competitive strategy that companies should include. However, To differentiate products culturally, characteristics, products benefits and features are used in the competitive positioning strategy Source: (marketing, 2014) 5. 1 Company background Kentucky Fried Chicken is one of the largest fast food franchises globally which offers fried chicken products. KEF started it operation in Beijing China in the year 1987 wrought Sino-foreign Joint venture which is the biggest fast food business in china.

Its restaurants are over 4600 branches today, serving 10 million customers per day. KEF has vastly grown in Beijing and it has impacted the childhood experiences of Chinese. Research shows that it has become an integral part of the Beijing children’s social lives and have adopted as part of their culture (KEF website). 5. Localization in china KEF china offers some standardized products in the menu but it has able to innovate and become unique in the Chinese environment, the company has able to localize he menu by adding some Chinese cuisine such as Dragon twister and herbal teas.

By doing so, KEF is incorporating some local spices in order to meet their tastes. Research shows that, KEF launches 20 new products yearly so it can remain competitive and to satisfy the Chinese people’ needs thus providing variety and plenty choices for its consumers (Berry, 2010). 5. Chinese values In china people values are incorporated by KEF by targeting the children and the elder people. It makes people feel like they are at home during their dining as the environment is tailored towards family lifestyle.

Furthermore the company uses some elements in sales and promotions, advertisements and decorations in doors. These elements comprises of family reunions, love and care between married couples (Shapiro, 2014). KEF also makes sure values are passed through generations by continuing to diversify menu and adapting local tastes therefore influencing consumers’ purchasing decisions. Their commercial are simple and engaging as it tends to use some funny scenes of or by introducing some storyline as mentioned by (Sender & Sheila, 2013). This allows consumers to easily understand the commercial.

The cartoon which comes with the kids meals are also made in Asian version mostly the Japanese cartoons such as Astor boy. 5,eating habits in China In china it is a norm for people to use dinning in restaurants as a way of communicating with each other. It used as an occasion to meet up with people probably friends therefore KEF notes that and considers that aspect as function to consumers. With some studies it is evident that, people in china often prefers to meet their friends at the restaurant rather than in their house (Taylor, 2010).

With such habits KEF restaurants have able to strategically locate themselves along the main streets but most of the restaurants are built in populated cities. These restaurants have the playground for kids to cater for parents who needs time off to stay for a bit longer. Although KEF has delivery and drive thru service, Chinese people still prefer dining in the restaurant so they can able to chat, relax with each other while eating. Most of the sales are made from dining inside the restaurant 5. Customs in china KEF has gone to greater lengths to learn and adapt Chinese customs such as festivals.

Every year Chinese do celebrate the Spring festival which starts the same mime with Chinese new year (Shank, 2014). Therefore during this celebration, the KEF restaurants are decorated in conjunction Chinese elements such as red color, animal signs for which correspond to that particular New Year. Also these elements are included in the other on advertisements and the packages of the products. Ambiance is created in the restaurants through traditional Chinese music during the spring festival and Colonel Sanders will be dress on Chinese traditional clothing.

However, KEF does not only focus on the spring festival rather it celebrates with all including he Muslims who are based in Rummy the capital of Gaining. KEF has position itself there by holding parties for those who have gone for circumcision (religious ritual) 5. Translations and language Language difference is a major barrier for multinational companies therefore they need to clearly understand the translated versions when doing business in other countries. According Catkin (2010), Chinese are perceived to be showing interest on brands that are pronounced in a funny way because it makes it easier for them to easily remember.

The mother company of KEF, Yum Brands, Inc ‘s name had to be reinstated in “Abashing” which in Chinese language it meaning is “we will always win the victory’. Moreover, part of the menu has been modified to other lingual name so as to meet the consumer s’ decision and also to adapt within the cross cultural regions. The cultures of Chinese focuses mostly on sharing happiness and having family reunions thus KEF always portrays it through beautiful name and that are meaningful. Another aspect is the menu; it has been tailored in an understandable and easier way.

KEF also has gone to an extent of changing their slogan to “Life is so tasty with KEF” specifically made for China market. . Competitive positioning 6. 1 Product innovation Due to intense competition from its rivalries KEF China makes sure they are continuing to innovating their products. Chinese are culturally oriented as they possess a highly sensible cultural identity mostly on to their traditional foods. KEF has effectively combined the culture of the Chinese with innovation thus consumers having a wide choice of food on menus for them to choose from.

A good example of innovative product is the Old Beijing Chicken volume it has also positioned itself as leading fast food Company in China thus making competition intense for its monitors. 6. Pricing strategy Pricing strategies are not widely adopted by KEF instead they more into product strategies. People value the relationship between in consumer prices and personal image china as the country has a society of large power distance. It is therefore empirical for KEF china to hold constant prices in order to keep up its image to the consumers without waving their prices.

On the other hand, Chicane’s the eating habits of collective tendencies should be noted when promoting their products in the restaurants. For instance, providing family buckets instead of using one product nice Chinese are family oriented 6. Distribution strategy for KEF China The culture of China is oriented towards masculinity and has a distinctive power distance therefore employees cannot complete some vital minor issues which are very crucial to the food industry as consumers could easily notice those issues.

However KEF need to recruit employees who are attentive so they can deliver quality to the Chinese society so the company can be more successful 6. Public relations of KEF China Reflecting on the company’s supply chain it is clear that the management is not attaining a desired effectuate 7. SUCCESS ATTRIBUTES KEF China has successfully penetrated the Chinese market therefore several factors are attributed to it. These factors are including the main ingredients in its recipe, the people and the strategy that is it deploys.

The strategy that KEF is using is really working well as it has incorporated the Chinese culture and heritage and also by continually meeting the demands of the dynamic business environment. It first started by leveraging the local resources and selecting the local investors along with the government and forming Joint ventures. However when china revised that isolations pertaining business operation, KEF left Joint venture and directly operated itself in the Chinese market thus avoiding dissolutions or disagreements with its investors.

This was a very smart move for KEF as it has able to dominate the fast food market in china and very successful. 7. 1 People Leadership plays a key role also on the success of KEF Company as it adheres to the leadership team called “Taiwan Gang”. This team comprises of a team that is from outside China and it is well experienced with the fast food industry. They possess ten to twenty years of experience which leads to proper knowledge regarding the arrest context therefore making KEF a very successful company.

With knowledge team, consumer behavior and purchase decisions are able to be tailored for as the team truly understand and have the intuitive market context. The leadership team also contributes to sustainability and the competitive advantage as they have the ability to be creative, come up with good ideas and quickly execute the ideas to meet the fast changing business environment. 7. Locality Although KEF is a western company, it has decided to go local when entering the China market/economy. KEF China is always introducing new products every year ore than its rivalry.

The products best fit the local tastes of Chinese consumer. It is only in China; KEF is dominant over McDonald’s due to blending well with Chinese culture. The KEF ‘S core products is widely accepted in China , the menu was localized highly such as the Chinese porridge known as conge , and Chinese dough fritters (TIA) which is served for breakfast in all the KEF outlets. Furthermore, its core product chicken is advantageous for the company because most of the Chinese prefer chicken and pork therefore having advantage over other competitor who are offering beef as a core product such as McDonald’s. Product category With reference to Cuff’s cultural and competitive positioning context, it is evident that the best product category that fits KEF is the convenience products. Consumers in China frequently make purchases of KEF due to the cross cultural difference it has tailored for in their products. KEF has outlets in almost every street in Beijing and also offers a lower prices and it stable so its consumers can perceive it as the same. It has further went on to rely on advertising, having sales promotions that meet the needs and culture of the Chinese consumers. 8. Conclusion

In conclusion, it is crucial for business operating on cross cultural basis to understand the consumer behavior and buyer purchase decisions. This helps the company to survive and gain competitive advantage by incorporating the culture of the people in the products/services. KEF has able to incorporate Chinese culture through changing its standardized menu to the meet the local tastes in China. Chinese consumers consider KEF to be part of their culture and it goes from generations to generations. It is therefore can be said; KEF china has positioned well and has gained a competitive advantage in the fast food industry of china.

Free Sample: Marketing Management paper example for writing essay

Marketing Management - Essay Example

Marketing has a marketing mix that is made of price, place, promotion, product (know as the four Up’s), that includes people, processes and physical evidence, hen marketing services. , Marketing communications are the means by which firms attempt to inform, persuade, incite, and remind consumers – directly or indirectly – about the brands they sell. Perhaps no area of marketing has seen more dramatic changes over the years than marketing communications.

As a result, the challenges presently faced by marketers in designing, implementing, and evaluating marketing communication programs are markedly different from those faced by marketers 20 or 30 years ago. One of the most important of these changes is the increase in the number and perversity of communication options available to marketers to reach consumers. Len recent years, the marketing communication environment has How does marketing communications fit in? Marketing communications is ‘promotion’ from the marketing mix.

Why are marketing communications ‘integrated? ‘ Integrated means combine or amalgamate, or put simply the Jigsaw pieces that together make a complete picture. This is so that a single message is conveyed by all marketing communications. Different messages confuse your customers and damage brands. So if a TV advert carries a particular logo, images and message, then all newspaper adverts and point-of-sale materials should carry the same logo, images or message, or one that fits the same theme.

Marketing communications has a mix. Elements of the mix are blended in different quantities in a campaign. The marketing communications mix includes many different elements, and the following list is by no means conclusive. Off It is recognizes that there is some cross over between individual elements (e. G. Is donating computers to schools, by asking shoppers to collect vouchers, public relations or sales promotion? ) Here are the key of the marketing communications mix

One difficult challenge for marketers is the large, diverse means of communication and communication options that are available to support their brands (e. G. TV, print, and interactive advertising; trade and consumer promotions; arts, sports, and cause sponsorships; etc. ). Consequently, marketers must understand what various marketing communication options have to offer and how they should be combined to optimize their marketing communications programs. Towards that goal, this paper considers issues in how to develop, implement, and evaluate an integrated marketing communication program.

Specifically, to provide micro perspectives especially relevant for academic research we introduce the Marketing Communication Tetrahedron as a means of classifying and analyzing factors influencing marketing communication effectiveness along four broad dimensions(I. E. Factors related to the consumer, communication, response, and situation). To provide macro perspectives especially relevant for managerial planning. We provide criteria as to how integrated marketing communication programs can be designed and evaluated as a whole (I. . According to coverage, contribution, commonality, complementarily, robustness, and cost considerations). We also describe how the two perspectives relate and conclude by discussing theoretical and managerial implications and outlining future research directions For a marketing plan to be successful, the mix of the four “up’s” must reflect the wants and desires of the consumers in the target market. Trying to convince a market segment to buy something they don’t want is extremely expensive and seldom successful.

Marketers depend on marketing research to determine what consumers want and what they are willing to pay for. Marketers hope that this process will give them a sustainable competitive advantage. Marketing management is the practical application of this process. Most companies today have a customer orientation (also called customer focus). This imply that the company focuses its activities and products on customer needs. Generally there are two ways of doing this: The customer driven approach and the product innovation approach. Of 50 In the consumer driven approach consumer wants are the drivers of all strategic marketing decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a market offering, including the nature of the product itself, s driven by the needs of potential consumers. The starting point is always the consumer. The rational for this approach is that there is no point spending R and D dollars developing products that people will not buy. History attests to many products that were commercial failures inspire of being technological breakthroughs.

In a product innovation approach the company pursues product innovation, then tries to develop a market for the product. Product innovation drives the process and marketing research is conducted primarily to ensure that a profitable market segment(s) exists for the innovation. The rational is that customers may not know what options will be available to them in the future so we should not expect them to tell us what they will buy in the future. It is claimed that if Edison depended on marketing research he would have produced larger candles rather than inventing light bulbs.

Many firms, such as research and development focused companies, successfully focus on product innovation. Many purists doubt whether this is really a form of marketing orientation at all, because of the ex post status of consumer research. Some even question whether it is marketing. A relatively new form of marketing uses the Internet and is called internet marketing or more generally e-marketing. It typically tries to perfect the segmentation strategy used in traditional marketing. It targets its audience more precisely, and is sometimes called personalized marketing or one-to-one marketing. Of 50 Four Area Marketing Communication PRICE PLACE PROMOTION PRODUCT off BASIC PRICING STRATEGIES The pricing strategy portion of the marketing plan involves determining how you will price your product or service; the price you charge has to be competitive but still allow you to make a reasonable profit. The keyword here is “reasonable”; you can charge any price you want to, but for every product or service there’s a limit to how much the consumer is willing to pay. Your pricing strategy needs to take this consumer threshold into account.

Basically you set your pricing through a process of calculating your costs, estimating the benefits to consumers, and comparing your products, services, and prices to others that are similar. Set your pricing by examining how much it cost you to produce the product or service and adding a fair price for the benefits that the customer will enjoy. Examining what there are charging for similar products or services will guide you when you’re figuring out what a “fair” price for such benefits would be. You may find it useful to conduct a Breakable Analysis. 7 of 50 There are three basic pricing strategies: skimming, neutral, and penetration.

These pricing strategies represent the three ways in which a pricing manager or executive could look at pricing. Knowing these strategies and teaching them to your sales staff, and letting them know which one they should be using, allows for a unity within the company and a defined, company-wide pricing policy. . Skimming Strategy Skimming is the process of setting high prices based on value. Instead of basing your prices on your competition, a skimming price comes from within the company and the (financial) value your product represents to your customer.

This strategy can be employed in emerging markets, where certain customers will always want the newest, most advanced product available. It also works well in a mature market, where customers have already realized the value of your product and are willing to pay for what they see as a worthwhile investment. Surprisingly, skimming also works n declining markets, as your diehard customers are willing to pay big bucks for what they see as an older but superior product with a dwindling supply. 2.

Neutral Strategy In a neutral strategy, the prices are set by the general market, with your prices Just at your competitors’ prices. The major benefit of a neutral pricing strategy is that it works in all four periods in the lifestyle. The major drawback is that your company is not maximizing its profits by basing price only on the market. Since the strategy is based on the market and not on your product, your company, or the value of either, you’re also not going to gain market share. Essentially, neutral pricing is the safe way to the play the pricing game. Of 50 3. Penetration Strategy A penetration strategy is the price war; this strategy goes for the deepest price cuts, driving at every moment to have your price be the lowest on the market. Penetration strategies only work in one of the four lifestyle periods: growth. During growth, your sales are continuing to expand, as your customers want the newest product but still a product that has already tested by others in the emerging period. This is when your average customer buys a product and when the sales numbers will be the biggest.

A penetration strategy works here, and only here, because you’re attracting customers to a new but proven product with cheap productions. You’re developing relationships with new customers willing to try the new product but who will only come for a lower price. Penetration strategies fail in the other lifestyle periods by leaving possible profits in the hands of the customers. In an emerging market, your product is brand new and customers who want it first should (and will) pay for that right. In a mature market, a price war will simply start the process of endless and useless competition, destroying our profit margin.

In a declining market, only those who still must have your product will purchase it, and Just like in an emerging period, they should (and will) pay for that right. Knowing which pricing strategy works best for your company is an essential tool for any pricing manager and can only be found by recognizing the lifestyle of your products. If your entire sales force is on the same page in recognizing product lifestyles and utilizing pricing strategies, your company will likely see greater returns Price Strategy Objectives Business strategies can also affect price.

Keep in mind each strategy can have multiple effects; some positive, some negative. The company may use pricing strategies seeking to: Maximize Current Profits: Higher prices, at least in the short term, can help improve overall profit margins. Of course, over time high prices may result in significantly fewer transactions and lower revenues. Off Maximize Cash Flow: Lower prices can increase transactions and increase overall revenue and boost cash flow – but possibly at the expense of profitability. Maximize Profit Margins: Higher prices yield higher profit margins, but could affect the quantity of sales.

Maximize Sales Quantity: Lower prices – or product bundles – can increase the total number of items sold and generate discounts or rebates from suppliers or wholesalers. Pricing objectives or goals give direction to the whole pricing process. Determining what your objectives are is the first step in pricing. When deciding on pricing objectives you must consider: 1) the overall financial, marketing, and strategic objectives of the company; 2) the objectives of your product or brand; 3) consumer price elasticity and price points; and 4) the resources you have available.

Some of the more common pricing objectives are: examine long-run profit maximize short-run profit increase sales volume (quantity) increase dollar sales increase market share obtain a target rate of return on investment (ROI) obtain a target rate of return on sales stabilize market or stabilize market price company growth maintain price leadership desensitizing customers to price discourage new entrants into the industry match competitors prices encourage the exit of marginal firms from the industry survival avoid government investigation or intervention obtain or maintain the loyalty and enthusiasm of distributors and other sales personnel 0 of 50 enhance the image of the firm, brand, or product be perceived as “fair” by customers and potential customers create interest and excitement about a product discourage competitors from cutting prices use price to make the product Missile” build store traffic help prepare for the sale of the business (harvesting) social, ethical, or ideological objectives To get competitive advantage Implementation 11 of 50 External Sources and Internal Sources Sources of Marketing Information A variety of sources can be used to obtain the information necessary to fuel a marketing information system. These information sources can be grouped into two main categories: secondary data and primary data. Secondary data were previously collected for another purpose. Primary data are generated for a specific purpose when the information is not available elsewhere. It is normally advisable to search for secondary data before engaging in a primary data collection process. The secondary data may provide the information necessary to make a decision, and even if they don’t, they may be useful in developing the collection process for primary data. Figure 2 illustrates the possible sources of information for marketing decisions.

Secondary Data As mentioned before, this type of data is already available from other sources and summarizes information about operations, marketing, human resource management, financial performance, and other topics of interest to management. A shrewd manager will make a thorough check of all available secondary data sources before undertaking primary data collection. Secondary data can save many personnel hours and a great deal of money. The major advantages of using secondary data are: ; Cost. It is much less expensive to obtain information from existing sources than to evolve entirely new data. These existing sources may require a nominal charge for the information, but it will be much less than the cost of undertaking primary data collection. ; Timeliness. Secondary data are available almost instantaneously.

A manager can have access to data very quickly and therefore does not have to wait weeks or perhaps months for primary data to be collected, analyzed, and summarized. 12 of 50 By using secondary data whenever possible, a manager avoids the frustration of developing the research methodology design, designing the data collection instrument, protesting the instrument, devising a sampling plan, gathering the data, checking all data for accuracy and omissions, analyzing the data, and summarizing and reporting the results. Instead, a manager can merely locate the appropriate source and access the information desired. This process can be completed in a few hours or days, whereas primary data collection can take weeks or months to complete.

However, secondary data collection does have the following disadvantages. ; Limited applicability. A manager has no assurance that information gathered by others will be applicable to a particular hospitality operation. For example, information obtained in New York about the popularity of a specific menu item is not necessarily useful to a manager operating in another part of the country. Information that pertains to one operation may apply only to that operation and be of limited value to anyone else. ; Information may be outdated. Managers need current and accurate information on which to base decisions. All too often, secondary data are not as useful as they might be merely because they are not current.

For example, the results of a consumer attitude survey conducted by a restaurant four years ago would be of limited value to manager making plans today. During the four years, a number of changes in consumer attitudes are likely to have taken place. These changes in attitudes will make the original data outdated and useful only in a historical sense. If a hospitality manager makes use of less-than-timely data, the results are likely to be less than satisfactory. ; Reliability. Whenever a hospitality operator uses secondary data as the basis for a decision, the manager runs the risk that the information may not be reliable and accurate. A manager would do well to determine who collected the data and what