Strategic Marketing Management †Free Sample -Myassignmenthelp.Com

Question: Discuss about the Strategic Marketing Management. Answer: Introduction The report highlights the marketing strategies that Donald B. Chocolate needs to undertake in order to establish competitiveness in the market. The target market of the company is presented in the report along with the positioning of the business. A comprehensive marketing mix is conducted that provides ideas about related product and services. Marketing strategy Recommended target market The recommended target market of Donald B. Chocolate includes people that range from ages 18-35 years old. However, in order to conduct a successful business, it is necessary that the marketing managers of the company ensure that people below 18 years of age are also targeted. This is mainly because of the fact that children love the consumption of chocolate products. According to Armstrong (2015), with a higher number of children in the country, Donald B. Chocolate can aim at this section of the population to gain the maximum number of sale. In this regard, market segmentation can be done that outlines the factors required to be considered. Geographic Demographic Behavioural Psychographic The geographic location includes the residents of the customers. The location of each customer needs to be detailed so that the transportation of the goods becomes easy. It may be beneficial for Donald B. Chocolate to target children residing in the areas of the business. It has been seen that the company conducts business in transport linkage places in Melbourne. Hence, the company can target children residing in that region or visiting the transport station for travelling in order to increase its reputation as well as revenue. The demographic condition includes the age, social status, gender and the occupation of the target people. The importance of this is that the products can be formed based on the people residing in a society (Chernev, 2014). For Donald B. Chocolate this factor is important as the range of age of the people varies a great deal. It is seen that the company targets both male and female. It is recommended now that the company target children of varied ages. Hence, the age range can change to 10-35 years of age. The behavioural factor needs to be determined based on the benefits that are provided to the customers and the rate of use of the product. In this case, the rate, at which the products are being consumed are taken into consideration. The age range of the target customers and the positioning of the company can be beneficial in gaining a proper response. However, the health conscious people need to be analysed as most people may fall ill due to the consumption of chocolates, as it is a dairy product. According to Keegan and Green (2015), the psychographic factors include the lifestyle and the personality of the people. Donald B. Chocolate does not have to deal with this factor as most people in different age groups prepare to have chocolates. Irrespective of the lifestyle and the personality traits of a person, chocolate products are consumed without much complaint. However, people with lactate intolerance may not find such consumption difficult. Table: Market segmentation (Source: Created by author) Positioning of the business Hollensen (2015) stated that positioning defines a particular place occupied by a brand. The positioning of a brand or market contributes heavily to the success or failure of a market. Positioning is done to create a strong brand image. However, once the image has been building it may be difficult to re-position itself in a new location. Thus, the initial selection of a positioning approach needs to be undertaken so that sudden changes in the organisation do not take place. In the case of Donald B. Chocolate, the company has already positioned itself in an area that is frequented heavily by customers. This provides a strong positioning for the company, as the people demand various types of chocolate products from the company. This provides an opportunity to increase its revenue and create a strong position in the Australian business market. In this regard, the positioning theory can be discussed. As stated by Moutinho (2014) positioning theory keeps in mind that not every person in a society has any equal opportunities to visit stores. It is about using words that help in the location of a particular product. The construction of social reality can help in the better positioning of an organisation. In the case of Donald B. Chocolate, the social reality of its consumption includes the manner in which the chocolates are consumed. Targeting children can help the company increase its positioning structure as the people frequenting the transport areas can purchase the products. Moreover, certain factors such as political, environmental, economic and social factors may also contribute to the effectiveness of positioning. The Government of Australia may ban conducting business in front of transport terminals in order to maintain cleanliness in the place. The social status of an individual may be such that people tend to purchase the product online rather than visiting. However, in or der to do this, Donald B. Chocolate need to create an official website. In this regard, it can be said that Donald B. Chocolate need to identify a proper positioning approach in order to mitigate the threats. Donald B. Chocolate can use product characteristic approach for the attracting customers. It has been seen that the company provides different chocolate products that meet the requirements of the customers. These products are provided based on the characteristic possessed by the chocolates offered. The health factors of the people need to be taken into consideration while applying the product characteristic positioning approach. Marketing mix Ideas related to offering products and services After analysing the target market and positioning of the company, it can be said that the Donald B. Chocolate may look to provide the best quality product and provide easy, quality service to the customers. Foxall (2014) stated that a unique offering of products and special services might help an organisation to build a reputation in a society. In the case of Donald B. Chocolate, the products offered by the company include chocolate products of various types. The products are differentiated keeping in mind the health of the customers. It is seen that the dark chocolate products provide rich anti-oxidants that provide customers with an opportunity to meet its health benefits. The products are also aimed so that it meets the lifestyle of the people. It has been seen that the Australian people remain health conscious and prefer to eat healthy so that disease does not occur. The behaviour of the customers in terms of purchasing of the products provide a better understanding of the target market (Hanssens et al., 2014). The services provide is also important to consider as people expect good quality service along with good quality products. Irrespective of the service place, people generally prefer quick service of the demands (Grnroos, 2017). Donald B. Chocolate needs to consider this as one of the most important factors. It has been seen that serving the products in transport junctions may be hectic as the demand may be high for different people. Hence, in order to ensure that products and services are provided in a proper manner, Donald B. Chocolate can introduce a system of purchasing via tickets. Every member requiring chocolate products will be provided with tickets and based on the number of the tickets; the customers can get their desired product. This can reduce chaos and satisfy customers. Different levels of product Aras et al., (2017) stated that a product consists of five level based on which the perception of a customer can be understood. These levels highlight the indication that the customers perceive a product thoroughly by analysing it from every manner. Customers can be satisfied if the specified value of a product is identical or higher than the value provided to the customers. The five product levels include: Core product: This represents the fundamental needs and wants of a customer. This highlights the basic purpose for which a particular product was intended. Satisfaction of the customers is depended upon the quality of the products and if the product serves the basic purpose. In the case of Donald B. Chocolate, the core purpose of the product is to provide a fancy consumption for the people. The fondness of the children upon consuming the chocolate products forms the basic purpose of the marketing. Generic product: According to Barrett and Weinstein (2015), the generic product level consists of all the characteristics of a product. The ingredient used for manufacturing and the designing of the product are highlighted at this level. Customers perceive the ability of a product to perform a multipurpose role. For example, the chocolates manufactured by Donald B. Chocolate need to tasty, low in fat and cholesterol in order to maintain the health of the people. Expected product: This includes aligning the expectations of the buyers along with the final product. Once a product is launched, customers tend to expect that the product may be innovative and different from others. This needs to align with the final product after it has been manufactured. The expectations from Donald B. Chocolate can be high as the company promises to bring new chocolate products to the market. Augmented product: West, Ford Ibrahim (2015) considered this as an important level of product, as the additional features in a product may prove the difference in gaining competitive advantage. This additional feature may prove it to be different from the competitors and as a result, people may be attracted to purchase it. Donald B. Chocolate can introduce chocolates mixed with ice cream in order to differentiate its products from the competitors. Potential product: This includes a future transformation of products. In order to ensure that customers do not find a single product monotonous, companies look to innovate or evolve a product. Donald B. Chocolate can increase the number of chocolates that exists in any gift packet or look to change ingredients for a particular product. Figure: Product levels (Source: Erragcha Romdhane, 2014) Pricing strategy In order to ensure that the products are sold at a rapid pace, organisations undertake pricing strategies that may be beneficial. These strategies provide an opportunity to identify the best practice that can be adopted in order to gain competence in the market. Solomon (2014) stated that pricing strategies result in addressing every possibility that an organisation can undertake in order to sell its products. However, the strategies undertaken need to assist the interest of the customers as well. Hence, it is necessary to analyse the strategies and the condition of the market before applying a strategy. In this regard, it can be said that Donald B. Chocolate can apply a similar pricing strategy in order to increase its potential in the Australian market. The pricing strategy that can be undertaken by the company includes the high-low pricing strategy. This strategy allows companies to keep the marked price higher than the competitors. This provides the company with an edge to gain more revenue than its competitors. At the same time, it is seen that with the help of promotions and other advertising campaigns the price of the products is lowered during its final sell to the customers. This strategy helps in ensuring that the competitors make their product expensive while the concerned organisation sells similar products at a cheap price and maintain its profitability (Dietrich, Rundle-Thiele Kubacki, 2016). Hence, the choice of this strategy can be beneficial for Donald B. Chocolate as the company is newly established. Given the nature of competition, it faces from companies such as Venga Pty Ltd, the adoption of high-low pricing strategy can be beneficial. Based on the fluctuation in the market and the demand of the customers, the company can adjust its price. This strategy is also recommended, as the company need to target children as primary customers. Distribution strategy According to Kasper (2014), before determining a proper distribution strategy, it is important that an organisation identify a distribution channel. Certain factors exist that determines the choice of the distribution strategies. These factors include the type of products that are to be distributed. This includes the rate of the perishability of the products. In the case of Donald B. Chocolate, such factor can be considered as chocolate products succumb to quick damage. It may create health concerns for the people consuming it. Hence, three approaches can be adopted for the distribution of products. These include mass distribution, selective distribution and exclusive distribution. These types vary depending upon the challenges faced in the market and the reputation it has in the market (Londhe, 2014). In this case, Donald B. Chocolate may choose a mass distribution. Customers can reach the target in this one way and ensure that profitability is obtained. The target market of the company needs to be the children hence, it is necessary for the Donald B. Chocolate to undertake mass distribution as children fall under a mass category of people. The outlets of the company already exist in transport line that is visited by many people. The company can consider such a strategy as a masterstroke as people can be found in abundance in this area. Apart from this, the company can indulge in franchise marketing so that they can spread in many areas within a society. For example, creating an outlet in front of schools located in Melbourne can help the company reach its target market. Thus, direct mass distribution of the chocolate products can be provided by the market. Promotional strategy After analysing the distribution channel and the pricing strategy, it is necessary to identify a proper promotional strategy. Armstrong et al., (2015) stated that promotion of a product is important in order to publicise the products to the customers. Promotion displays the type of product, its features, extra features, price and the benefits of purchasing these products. Hence, it is required that a suitable strategy is adopted that helps in the smooth publicity of a product. In this regard, it can be said that Donald B. Chocolate need to adopt the advertising strategy. According to Cross, Belich and Rudelius (2015), advertising is one of the old school methods of promoting a product. Advertising can be done in the form of print media or visual media. In the modern world, advertising is done in social media in order to attract every customer around the world. The target of Donald B. Chocolate are people aged between 18-35 years. The children may not be having social applications, bu t the adult people may use the social networks to visit the website and shop online. Furthermore, commercials on television can attract people. However, as per Payne Frow (2014), the commercial advertisement needs to be done based on the popularity of a particular show. Hence, it can be said that Donald B. Chocolate can promote the products by setting up an advertisement in popular children television shows. This can help the company to attract the children and make them the primary target market. Extended marketing mix The extended marketing mix consists of the people, process and physical evidence. These provide additional support to the original marketing mix elements and are considered as equally important in terms of gaining competitive advantage. People: According to Proctor (2014), this consists of the target market without which an organisation cannot function properly. The people of a society are determined by market segmentation based on it the product is manufactured. This is one element in the marketing mix that takes into consideration every factor required for a marketing of a product. In the case of Donald B. Chocolate, the company considers mass distribution keeping in mind the various people of different age. The fact that most people in Australia are health conscious is taken care of by the company in terms of its product manufactured. Process: The process of manufacturing a product is important as in the modern world, sustainability is important (Van Waterschoot Van den Bulte, 2014). Hence, the chemicals used for manufacturing a product need to be analysed before using it. The process of manufacturing chocolates requires the use of certain chemicals and other products such as milk. Fresh products are essential in order to maintain the health of the people consuming the product. Hence, it can be said that Donald B. Chocolate need to use fresh products in order to maintain the health of the people in the society. Physical evidence: The physical evidence denotes the ability of an individual to touch or feel the product before purchasing (Huang Sarigll, 2014). This is required for a proper quality check of the product. In the case of chocolates, Donald B. Chocolate can use the physical evidence element as a promotional method. This can be done by providing free samples to the children before selling the product as a whole. Conclusion Hence, it can be concluded that in order to survive in the competing market, Donald B. Chocolate need to be specific about the customers that they need to target. It is important for the company to develop a proper marketing mix strategy in order to ensure that the products remain unique from the competitors. The positioning of the market need to be such that the children as well as other people in the society can be approached with ease. Furthermore, the extended marketing mix can help in providing added support to the company. Reference Aras, M., Syam, H., Jasruddin, J., Akib, H., Haris, H. (2017). The Effect of Service Marketing Mix on Consumer Decision Making. InInternational Conference on Education, Science, Art and Technology(pp. 108-112). Armstrong, G., Kotler, P., Harker, M., Brennan, R. (2015).Marketing: an introduction. Pearson Education. Armstrong, G. (2015).Marketing. Pearson Education. Barrett, H., Weinstein, A. (2015). Corporate entrepreneurship, the marketing mix, and business performance. InProceedings of the 1997 Academy of Marketing Science (AMS) Annual Conference(pp. 144-150). Springer, Cham. Chernev, A. (2014).Strategic marketing management. Cerebellum Press. Cross, J. C., Belich, T. J., Rudelius, W. (2015). How marketing managers use market segmentation: An exploratory study. InProceedings of the 1990 Academy of Marketing Science (AMS) Annual Conference(pp. 531-536). Springer, Cham. Dietrich, T., Rundle-Thiele, S., Kubacki, K. (Eds.). (2016).Segmentation in Social Marketing: Process, Methods and Application. Springer. Erragcha, N., Romdhane, R. (2014). New faces of marketing in the era of the web: from marketing 1.0 to marketing 3.0.Journal of Research in Marketing,2(2), 137-142. Foxall, G. (2014).Strategic Marketing Management (RLE Marketing)(Vol. 3). Routledge. Grnroos, C. (2017). Keynote paper From marketing mix to relationship marketing-towards a paradigm shift in marketing. Management decision,35(4), 322-339. Hanssens, D. M., Pauwels, K. H., Srinivasan, S., Vanhuele, M., Yildirim, G. (2014). Consumer attitude metrics for guiding marketing mix decisions.Marketing Science,33(4), 534-550. Hollensen, S. (2015).Marketing management: A relationship approach. Pearson Education. Huang, R., Sarigll, E. (2014). How brand awareness relates to market outcome, brand equity, and the marketing mix. InFashion Branding and Consumer Behaviors(pp. 113-132). Springer New York. Kasper, M. T. (2014). The concept of'marketing mix'and its elements (a conceptual review paper).International journal of information, business and management,6(2), 95. Keegan, W. J., Green, M. C. (2015).Global marketing. Upper Saddle River, NJ: Pearson. Londhe, B. R. (2014). Marketing Mix for Next Generation Marketing.Procedia Economics and Finance,11, 335-340. Moutinho, L. (2014). Segmentation, targeting, positioning and strategic marketing.Strategic management in tourism, 121-166. Payne, A., Frow, P. (2014). Developing superior value propositions: a strategic marketing imperative.Journal of Service Management,25(2), 213-227. Proctor, T. (2014).Strategic marketing: an introduction. Routledge. Solomon, M. R. (2014).Consumer behavior: Buying, having, and being(Vol. 10). Upper Saddle River, NJ: Prentice Hall. Van Waterschoot, W., Van den Bulte, C. (2014). The 4P classification of the marketing mix revisited.The Journal of Marketing, 83-93. West, D. C., Ford, J., Ibrahim, E. (2015).Strategic marketing: creating competitive advantage. Oxford University Press, USA.