Analyzing Marketing mix components

The marketing mix of the company is comprised of the following approaches to customer service, advertising, and promotion, pricing and distribution.

• Pricing: the company put emphasis on value over price. The company also backs this approach up by providing a guarantee of three years. The company always respects the demand of the customer, and it reviews the price according to the demand of the customer.
• Distribution: the company would distribute its product through two retail stores at the convenient places of the customers to provide them easy access to the stores. The company would also provide car parking facilities at the stores.
• Advertising and promotion: one of the most successful advertisements of the company would be insert and ads in the Brizzy. Apart from this PR campaign and review of informational articles would also be successful. Competition with the prize and in-store entertainment would be used for promotion. The company does not consider social media for advertisement and promotion because the target segments of customers have fewer trends towards social media.
• Customer service: the philosophy of the company is that the company must do whatever needs to be done to make customer satisfy and happy. The company is committed to providing high-quality service to the customer to make them happy.

Key to success

The site selection of the company is critical to success;

• The pattern of shopping needs easy access
• New dwelling population
• Availability of car parking facility
• Competitive price

Evaluate the marketing mix

The company has envisaged sourcing the new product on a regular basis according to the taste and preference of the customer from the supplier that is targeted at every twelve months. The market research firms will be engaged to test the product. The changes would be made in the product according to the feedback of research firm. The company wants to provide only tested product to the customers.

External factors

The national outdoor lifestyle market achieved the milestone of $300 million in 2009. It has been estimated that the sales of outdoor lifestyle will grow by at least 6% in coming future. The following factors may contribute to the growth in the sales of outdoor lifestyle;

• Higher disposable income of the families from two income families
• Higher availability of interesting as well as affordable quality imports along with the high values of Australian currency
• Advertising through famous TV program of lifestyle

External

The price of real estate market of south-east Queensland is continuously increasing. As a result of the disposable income of the families also increasing. On the basis of economic forecast, the company assumes that there would not be a hike in the interest rate which will not affect the disposable income of the families. The company also assumes that the employment rate also would be same.

Political

In a research, it has been found that the focus and emphasis of the present government would be on productivity and growth which would be a good sign for the company’s business model. The government is also emphasizing environmentally sound business practice as well as synchronized WHS legislation. BBQ fun is operating its business in Australia. Therefore, the company is abiding by the law of the nation and comply with the legislation of the country. 

Customer preferences

It is the tendency of the customer to compare the prices of the competitors because they want a competitive price. Therefore, the company arranged a survey based on a questionnaire to the random consumer. In the survey, it has found that the company needs to change the average price of the product. The change in average price of the product would impact the marketing mix of the company.

The marketing mix in relation to organizational strategic and operational marketing objective

The strategic objective of the organization

The following are the strategic objective of the organization;

• To engage the customer in the service through market research and promotion
• To build a reputation for quality customer service as well as a quality product
• To provide support to the people to improve performance through performance management and training
• To control the cost
• To increase the profitability by increasing sales revenue

Relation to the marketing mix

The objectives of the organization are directly linked to the marketing mix such as price, promotion and advertising, distribution, and customer service.

The marketing objective of the organization

• To increase the loyal customer list from 10000 customers to 160000 customers
• To create brand recognition in south-east Queensland so that at least two in three persons can identify the brand of the company.

The marketing objectives of the organization are linked directly with the marketing mix such as price, promotion and advertising, distribution, and customer service.

The financial objectives of the organization

• To attain a double-digit growth rate in every financial year
• To decrease the overhead cost of each store through effective expense management
• To continuous increase the margin of gross profit

The financial objectives of the organization are directly linked to the marketing mix such as price, promotion and advertising, distribution, and customer service.

The customer satisfaction objectives of the company

The site selection of the company is critical to success;

• The pattern of shopping needs easy access
• New dwelling population
• Availability of car parking facility
• Competitive price

The objectives of customer satisfaction are directly linked to the marketing mix such as price, promotion and advertising, distribution, and customer service.

Recommendation of relevant legislation

The government is focusing on environmentally sound business practices as well as synchronized WHS legislation. As the company is operating in Australia, it is abided by the law to follow the legislation of Australia. The following are the important legislation of Australia;

• Anti-discrimination Act 1991 (Queensland)
• Corporation Act 2001 (Cwlth)
• A new tax system Act 1999
• Fair Work Act 2009
• Privacy Act 1988
• Australian Securities and Investment Commission Act 2001
• Income tax assessment Act 1997

References

Establish and Adjust the Marketing Mix - BSBMKG502, 2015, 1^st Edition, Version 1, Innovation and Business Industry Skills Council Ltd Australia, East Melbourne, VIC, Australia

Appendices

Sales and marketing policy of BBQ fun

Purpose

The purpose of sales and marketing policy is to ensure that the sales, advertising, and marketing of the company are ethical as well as accurate. It also ensures that actions adhere to a standard code of conducts and legislation.

On the use of marketing materials, such policy and procedure are required to enable the company to adhere to the entire legislation relevant to meet the standard code such as Advertising Standard Bureau codes of conduct as well as to marketing practices.

Scope

It covers all the contractors and employees of the company.

Resources

Particular procedures to implement this policy are available on the intranet of the company.

Responsibility

All the contractors, management, and the employees of the company are responsible for the implementation of this policy.

Relevant legislation

• Anti-Discrimination Act 1991
• Spam Act 2003
• Free TV Australia Commercial Television Industry Code of Practice
• Australian e-commerce best practice model
• Privacy Act 1988
• Competition and Consumer Act 2010
• Australian Direct Marketing Association
• Australian e-marketing code of practices

Authorized/updated

6/2012 – Riz Mehra, CFO

General procedures for marketing and sales activities

• Follow the entire procedures of the BBQ fun. Details of the written procedures are accessible to the entire customer service and sales employees at the premises of the company. It is also included in the induction packages of the employees.
• The employees should use the templates provided by the company to document the marketing activities.
• The employee should also seek the approval of concerned authorities for marketing activities.
• The entire sales and marketing actions should

• Follow Do Not Call registration legislation: the company should not call the potential customer for marketing purposes.
• Follow the act of privacy: the company should not use personal information for marketing purposes without taking written consent
• Follow the policy of anti-discrimination: the written material or images should not portray anyone negatively.

• To minimize the risk of health and safety of the employees of the company the business practices should be conducted responsibly and safely.
• It should not include spam organizations
• It should follow the competition and consumer act 2010. The employees should not

• Try to persuade the people for placing their interest above the company
• Try to stop competition by

• Persuading a consumer or a competitor to breach the contract with a third party
• Gaining illegal access to classifying or proprietary document or information
• Safeguarding the biased competitive advantage

• Disobey any regulation
• Involve in any such action which can harm the reputation of the company
• Provide misleading or wrong information related to

• Claims of services or product: benefits, price, quantity, etc.
• The company's sustainability as well as the environment
• The company’s ethical conduct
• Other claims

• Follow the standard code of practices wherever necessary or relevant related to particular types of media such as TV, radio, and the internet.

Task2: Monitor and adjust the marketing mix

Executive Summary

Pat Mifsud, the current CEO of BBQ fun established the company in 2009. A wide range of products including local as well as imported products are being offered by the company. The market share, as well as the  profitability of the company, gradually increased in 2010 when the sales of the company picked at $10 million. But since 2010 there are several factors which have negatively influenced the sales of the company such as an increase in the level of competitive retail environment, change in the taste and preference of the consumers, technological change. However, the company managed to return to the path of sales growth in 2012 by exploiting its corporate strengths. The strength of the organization could be built by following the target market strategy which focuses on a major segment of the market. The strength can also be built by exploiting the opportunities of the market.

Mission

To provide a product with a great value outdoor lifestyle to our potential customers and superior quality of services that would be second to none.

Vision

To be the leading outdoor lifestyle retailer in South East Queensland within the next five years;

Values

People: diversity, continuous improvement with innovation, teamwork, excellence, encouragement of safety

Customer values

Quality

Introduction

I am working as a marketing manager for this company. The senior decision-maker of the organization has asked me to evaluate the marketing mix of a product or service of the organization. Various recommendations have been made by you on the marketing mix which is to be implemented and monitored.

Six months have been gone. The earlier recommendations regarding the marketing mix have been tested; now there are various data available before you to review the marketing mix's effectiveness against the organizational objectives.  You are required to document a report for evaluating the performance and provide recommendations to the marketing mix in regarding market testing as well as changes to the budget and planning to permit for such modification to be applied.

Now, I need to ensure that the changes are monitored effectively over the next two financial quarters.

Marketing mix performance against objectives

The performance of the marketing mix reviewed after six months, and it is found that all things are on track.

The marketing mix of the company consists of the following approaches such as pricing, promotion and advertising, distribution, and customer services.

• Pricing: the company emphasized value over price. The company also backs this approach up by providing a guarantee of three years. After careful thought, it has been found that the price of accessories of the company can be changed.
• Distribution: the company would distribute its product through two retail stores at the convenient places of the customers to provide them easy access to the stores. After careful thought, it has been found that the distribution channel is smooth.
• Advertisement and promotion: one of the most successful advertisements of the company would be insert and ads in the Brizzy. Apart from this PR campaign and review of informational articles would also be successful. Competition with the prize and in-store entertainment would be used for promotion. The company does not consider social media for advertisement and promotion because the target segments of customers have fewer trends towards social media. After careful thought, it has been found that advertisement and promotion are effective.
• Customer service: the philosophy of the company is that the company must do whatever needs to be done to make customer satisfy and happy. The company is committed to providing high-quality service to the customer to make them happy. The result of UPT and ACS show that there is a need to improve the customer service.

Proposed changes

After careful monitoring the performance it has been found that the customer service and price should be changed.

Effect of changes in marketing and planning the budget of the organization

• The price of accessories of the company increases by $5 to make more money.
• High customer service training related to the corporate social responsibility.
• Therefore, there would not be any impact on a budget of the company.

The relevance of the policies of the organization as well as a relevant code of conduct, regulation, and legislation

The government is focusing on environmentally sound business practices as well as synchronized WHS legislation. As the company is operating in Australia, it is abided by the law to follow the legislation of Australia. The following are the important legislation of Australia;

• Anti-discrimination Act 1991 (Queensland)
• Corporation Act 2001 (Cwlth)
• A new tax system Act 1999
• Fair Work Act 2009
• Privacy Act 1988
• Australian Securities and Investment Commission Act 2001
• Income tax assessment Act 1997

Strategies related to monitoring in order to ensure changes to marketing mix meet objective which involves regular monitoring activities, responsibilities, and clear objectives performance benchmark

To adjust the price for the next two financial quarter and training to review the customer service $50000.

The company adjusted the marketing mix to meet the operational, strategic, and organizational marketing objectives.

Strategic objectives of the organization

The following are the strategic objective of the organization;

• To engage the customer in the service through market research and promotion
• To build a reputation for quality customer service as well as a quality product
• To provide support to the people to improve performance through performance management and training
• To control the cost
• To increase the profitability by increasing sales revenue

Relation to the marketing mix

The objectives of the organization are directly linked to the marketing mix such as price, promotion and advertising, distribution, and customer service.

The marketing objective of the organization

• To increase the loyal customer list from 10000 customers to 160000 customers
• To create brand recognition in south-east Queensland so that at least two in three persons can identify the brand of the company.

The marketing objectives of the organization are linked directly with the marketing mix such as price, promotion and advertising, distribution, and customer service.

The financial objectives of the organization

• To attain a double-digit growth rate in every financial year
• To decrease the overhead cost of each store through effective expense management
• To continuous increase the margin of gross profit

The financial objectives of the organization are directly linked to the marketing mix such as price, promotion and advertising, distribution, and customer service.

The customer satisfaction objectives of the company

The site selection of the company is critical to success;

• The pattern of shopping needs easy access
• New dwelling population
• Availability of car parking facility
• Competitive price

The objectives of customer satisfaction are directly linked to the marketing mix such as price, promotion and advertising, distribution, and customer service.

Milestone for the project

Risk factors

The following are the risk factors which have been identified with regard to the implementation of the marketing plan

• Ineffectiveness in identifying changes in the external environment in the market as well as developing effective strategies.
• Ineffective training program to the employees with regard to marketing strategy
• Failure in revising the resources and the operation of the organization with regard to marketing strategies
• Ineffectiveness recruitment and selection of the staffs because of the high competition in the market
• Ineffectiveness in gaining revenue because of poor confidence of the consumer
• Profit is also affected due to high competition in the market
• Non-compliance with anti-discrimination
• Loss of capability as well as knowledge because of employee turn over
• Failure in meeting safety and health requirement

Final recommendation

The following are the final recommendations for monitoring

• Adhere to milestone
• Use of baseline
• Monitor the process as well as review the process
• Split the small portions
• Analyze the budget

The following measure would be taken by the management of the company in order to reduce the risk.

• Industry benchmarking in the entire area of the performance of the organization
• Review and analysis of planning (marketing and operational)
• Review and analysis of opportunities related to e-commerce in the market and online presence

Conclusion

In conclusion the company has monitored and adjusted the marketing mix.

References

Establish and Adjust the Marketing Mix - BSBMKG502, 2015, 1^st Edition, Version 1, Innovation and Business Industry Skills Council Ltd Australia, East Melbourne, VIC, Australia