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Importance of Marketing Management

University: LSC London

  • Unit No: 16
  • Level: High school
  • Pages: 15 / Words 3682
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 250
Question :

This sample will let you know about:

  • Define Marketing Management.
  • What is 4P Model?
Answer :
Organization Selected : Aldi

INTRODUCTION

Marketing is referred to as a set of activities like advertising, branding, promoting etc. that are used by organisations to attract customers and encourage them to purchase their products and services (Bagozzi and et. al., 2018). Marketing Management, on the other hand, comprises of activities like planning, organising, implementation as well as management of different marketing policies as well as strategies. The process of marketing management is important as it helps organisations in understanding the needs of the customers and thereby tailoring the products accordingly.

This report is based on Aldi, which is a German chain of discounted stores and has decided to run an intensive marketing campaign with the tag line “Expressing Ourselves” for a period of 12 months. Aldi is a company that is known for offering its products at super discounts to the customers. It offers only limited products to the customers and this helps it in saving money and other costs associated with the products.

The company keeps its labour costs as low as possible and also charges its customers for a shopping bag. Aldi stores are simple and it does not spend much on making its stores attractive. But this is a complete turn-off for the customers as some of them do not enjoy their shopping experience at the outlets. The company has never disclosed its secret behind being one of the largest retailers across Europe. The company faces immense competition from brands like Tesco etc.

The company primarily focuses on grocery products that are purchased commonly and that they are always readily available for the customers. Every week, various food and non-food products are offered to the customers at great values. Non-food products include kitchen appliances, seasonal products, gardening tools etc. The mission of the company is to constantly set standards for retail foods as well as to expand its business across international borders. It also aims at improving its businesses approaches constantly not only to gain loyalty of its customers but also satify their needs in an effective and efficient manner.

The report describes a TOWS analysis which explains the different marketing audits that were undertaken. Marketing objectives that can be set for the campaign are also included in the report. It also comprises of a marketing mix plan that should be undertaken in order to attain objectives. Recommendations on how can the respective company improve its customer service as a part of its marketing campaign are also provided.

TOWS Analysis for ALDI

TOWS stands for Threats, Opportunities, Weaknesses and Strengths and is a framework that assists organisations in identifying their strengths, weaknesses, various opportunities and threats. The model matches the various internal factors to external factors to assist in identifying the appropriate strategic options that are available in the market (Tafesse and Skallerud, 2017). A marketing audit is an analysis of an organisation's various marketing activities and objectives. It helps in identifying if the marketing efforts that are made by an organisation are carefully planned and managed as well as the way in which they are performing in relation to the goals and objectives. A TOWS analysis for Aldi is described below -

 

Strength

Weaknesses

Opportunities

  • Widely recognised brand
  • Low cost structure
  • Strong network of distribution across different geographical locations
  • Provide rewards to employees
  • No diverse workforce can be minimised by conducting operations online
  • Work on research and development
 

Threats

  • Strong distribution can help in reaching out to a large number of customers
  • Marketing strategy audit can be conducted to identify objectives
  • Spend more time on research and development to deliver useful products
  • Providing incentives will help in providing a sense of belongingness among employees
 
  • Strengths and Opportunities – Aldi is a market leader and a widely recognised brand among people. It is primarily known for offering high quality products at affordable rates (Deepak and Jeyakumar, 2019). It can use this strength to increase its online presence on social media which will help it in attracting a lot of customers. It should develop products that are environment friendly and innovative. Since the company has an overall low cost structure, this will help it in producing products that are priced at affordable rates. An internal audit was conducted in which the staff of the company was evaluated on its overall performance based on the respective positions. Also, a strong network of distribution will help the company in grabbing various opportunities. A strong brand image will attract the involvement of a lot of customers.
  • Weaknesses and Opportunities – The company should provide rewards and benefits to its employees in order to retain them and solve the problem of increasing turnover. This is possible for the company as the costs involved in producing the products is low. Since the company does not have a diversified workforce, this weakness will be minimised when it also conducts its operations online. If the company works on its research and development, it will be able to attract opportunities and gain a competitive advantage against competitors. Various benefits should be provided to the employees so that they are satisfied and find opportunities to improve their performance. A productivity audit is conducted to get insights of how different operations of the respective company are performing.
  • Strengths and Threats – The strong distribution system of the company can help it in reaching out to a large number of customers and thus overcome the threat of new entrants entering the market (Forkmann and et. al., 2016). It can also use its strong financial position to invest in various intellectual properties which will in turn help it in fighting against the competition that is posed by other players on the market.If the company launches new products in the market, there will not be a need to invest heavy amounts on marketing and promotion as it already has a strong brand image and thus the people will relate to the same. A marketing strategy audit is conducted which helps in finding out if the objectives that are set by the company are clear and measurable or not. This can also help the company in finding out the importance of various strategies implemented by it.
  • Weaknesses and Threats – The respective organisation should spend more on its research and development activities which will help it deliver more useful products that fulfil the needs of the customers and thus gain a competitive advantage against other players in the market. This will also be helpful in minimising the threat of new entrants who offer substitute products. Also, incentives and other benefits should be provided to the employees which will ensure a sense of belongingness among the employees and they will be more engaged and committed to their jobs which will minimise their chances of switching companies (Homburg, Jozić, and Kuehnl, 2017). Thus, the company will be able to retain talent and maintain a positive brand image in the market among customers. An external marketing audit about the performance of competitors is done which will help Aldi in carrying out its research and development activities effectively and thus launch new products.  Need Assignment Samples.Talk to our Experts!

Marketing Objectives for the Campaign

Certain goals and objectives that are set by organisations while advertising and promoting their products in the market that are to be achieved within a set duration of time are defined as Marketing Objectives. When the marketing plan of an organisation is large, the marketing objectives help in measuring the overall progress against competitors. Managers and leaders in the respective organisation set specific goals and objective to get a clarity of what is happening in the company.

While developing marketing objectives, it should be made sure that they are specific and clear to understand. Thus, management of an organisation should spare time and involve the same in formulating specific and measurable objectives which in turn eases out the process of completing a task. Aldi has decided to run an intensive marketing campaign from 1st May, 2020 to 30th April, 2021 and on the basis of this 3 marketing objectives are stated below -

  • To launch new and innovative products within 6 months in order to attract new segments of customers and raise the existing sales by 25%.

Justification -

In order to achieve this objective, the respective company should take into account various considerations. In order to launch new and innovative products in the market within 6 months, it should conduct a research that will provide an insight into the needs and wants of the customers (Iankova and et. al., 2019). Thus, the company will be able to develop more refined products that will actually fulfil the customers' needs. Once the products are developed, various offline as well as online channels can be used to promote the products in the market. These channels can include different social media platforms like Facebook, Twitter and Instagram as well as the company's official online website.

  • To formulate marketing strategies that are specific to these products within 7 months in order to enhance awareness by 15% and encourage people to purchase the products.

Justification -

Different strategies that will be developed specifically for these products will include hiring bloggers and influencers to promote and talk about the products online etc. If new products will be offered at low rates, the company will be able to attract new customers and thus raise its sales. Also, various marketing strategies like online promotions through website and social media that are specific to these new products will help in creating awareness among the customers.

  • To increase customer involvement by next year in all the major tasks of the “Expressing Ourselves” campaign in order to increase customer base by 15%.

Justification -

To increase the involvement of customers different contests can be run either in the retail stores of the company or online on its website and other social media platforms as they have a huge presence of followers (Kotler and et. al., 2018). This will help the organisation in increasing awareness about its products, attract new customers as well as reach out to an increased audience worldwide. Thus, a thorough analysis of the market should be done in order to get a clear understanding of the needs as well as expectations of the customers and then develop products that are in sync with the same. All of this should be conducted properly so that the objectives are achieved on time and are not delayed. A plan can be developed which will guide the whole process of achieving the objectives.Get Assignment writing service? Talk to Our Experts Now!

Marketing Mix Plan that should be undertaken

A marketing mix is an important strategic tool that is used by an organisation and helps in understanding what its products and services can offer to the customers and also how can a successful offering be planned (Wali Uduma and Wright, 2016). A marketing mix plan comprises of four elements, namely- Product, Price, Place and Promotion. A marketing mix plan for the respective company to help it achieve its objectives is described below -

  • Product – Aldi offers its customers with a wide variety of products and at pocket friendly prices. The products range from food items to bakery items to beauty and pet care. The company is known to work with the best suppliers that help it in delivering the best products to the customers at very affordable rates. The products that are sold by Aldi are highly differentiate which makes it easer for the customers to choose the products they like, both offline at retail stores as well as online on its website (Marketing mix of Aldi – 4Ps of Aldi, 2020). Since the brand is widely recognised among customers, they perceive its products to be of high quality and are thus willing to pay extra for the same. Although, the company can provide additional benefits to the customers whenever they purchase a certain product of the brand. The benefits can include after-sales service, helpline service, rewarding loyal customers etc. which help the company retain its customers for a long duration of time. Additions to existing products can also be made in order to attract more customers and encourage them to buy the same. The product portfolio of the company can also be widened by adding new products in existing product lines. This will give the customers a chance to choose products that best suit their requirements.
  • Price – Currently, the company follows the strategy of competitive pricing as the data about the competitors is easily available to the organisation. The company should also take into consideration the costs of various products and then set the prices of the final products accordingly (Moutinho and Vargas-Sanchez, 2018). Although the company is said to sell its products at affordable rates, the products are still priced high as compared to the competitors which is because the products have various features. For the new products, the company can also use the strategy of bundle pricing wherein it can bundle similar products together and then sell them to the customers at low prices. If the company sells its products online, it can charge high prices as the delivery charges can be covered n the same. The company will have fixed prices for its final products and thus the channel members, retailers as well as wholesalers buy products from the company and can earn from their margins (Zimmerman and Blythe, 2017). The strategies that will be formulated for the new products will be set in such a way that the cost is minimum and the results are also achieved. This can be done by incorporating various social media platforms as this will enable the company in maximising its reach among the customers by having to invest very little.
  • Place – The company sells its products offline through retail stores and online through its website. The company also sells its products to wholesalers who further sell the same to retailers. The products then finally reach the market where customers purchase the same. In order to market these products, the respective company can opt for marketing its products intensively wherein it will try to cover as many retailers as possible for selling its products. An omni-channel distribution system can be followed in which both online as well as offline channels can be integrated to provide customers an easy access to products and services (Naudé and Sutton-Brady, 2019). The company should develop a healthy and long term relation with its suppliers so that the required raw material for developing products is delivered on time. This will also help the company in coming up with new and innovative products that have added attractive features. Regular updates on different social media channels should also be posted in order to keep the customers engaged as well as updated at the same time. The company can also market and sell it products through social media which will enhance the sales as well as the profitability of the company.
  • Promotion – Aldi uses various channels both online as well offline channels to sell its products. It uses traditional ways like flashing advertisements on television and radio that are beneficial due to their large reach among the people and also help the company in attracting a lot of customers. Online ways can also be used which are not only cheaper but also of great advantage as the number of people using internet is increasing day by day (Reic, 2016). The company can also adopt the strategy of selling its products personally to customers through a large number of sales employees. The company can also promote its products at various exhibitions and events that take place during the time period in which the marketing campaign is carried out. Various celebrities can also be hired to promote products in the market which will in turn help the company create an increased acceptance of its products in the market. Promoting online will create a base for two-way interaction, between the company as well as the customers through comments, direct messages, reviews etc.

Recommendations

For the intensive marketing campaign to be successful, Aldi should take into account various considerations. Customers service is an important part of any organisation and helps in creating a strong brand image in the market among the customers which can in turn help the business to grow (Skorobogatykh and et. al., 2016). Some recommendations for the company in order to improve its level of customer service as a part of it's marketing campaign are stated below -

  • The customer service representatives should actively listen to the concerns as well as feedbacks of the customers and then address the same. This will build a positive rapport among the customers about the company. The representatives should also follow up with the customers in case anything goes wrong with the products.
  • The employees within the customer service department should have complete knowledge of the products and services of the marketing campaign. This will help them in making customers understand about the products and services of the company in a better and enhanced way. For this, regular training should be provided to the employees to ensure that their skills are enhanced.
  • During the marketing campaign, the company will receive many feedbacks from customers. It should carefully measure and analyse the same in order to identify areas it was previously lacking in and then provide better service to the customers in order to satisfy their needs and wants.
  • Appropriate knowledge should be provided to the customers by the customer service representatives as they are the ones who interact with the customers. The company should try various ways of connecting with the customers through social media platforms like Instagram, Facebook and Twitter. This is a great way of solving concerns of the customers as the interaction is two way.
  • The customers should be provided with a lasting experience during the campaign and this can be done by involving them at every stage of the campaign which builds in a sense of belongingness among them . The company will also gain the advantage of gaining their loyalty.
  • The representatives of the campaign should never miss a chance of asking for feedbacks from the customers. This is beneficial for the organisation as it will help the organisation in addressing the same and thus improve areas in which the customers think it is lacking as compared to its customers.
  • The customers who have been loyal to the brand since a very long time should be rewarded with additional benefits like discount vouchers, loyalty cards, reward points etc. This will not only help the company in attracting a lot of customers but also retain the existing ones.
  • The representatives should be confident while addressing the concerns and queries of the existing as well as new customers. This will leave a positive impression on the customers and thus he/she will start trusting the brand which can in turn be beneficial for Aldi. Take Marketing Essay Help now!

These are some of the recommendations that the company should consider while running the marketing campaign in order to improve the service that is provided to the customers. If the company provides exceptional service to the customers, they will not only remain loyal to the brand but also promote the same through word of mouth promotion. Thus, this will be beneficial for the company as it will be able to retain its existing customers for a long duration of time. Therefore, the company is recommended to take the above mentioned points into consideration to not only achieve its objectives within time but also to be successful and maintain the goodwill it already has in the market.

CONCLUSION

From the above report, it can be concluded that TOWS is a framework that is very helpful for organisations if they use it correctly. By doing so they get an insight about their strengths as well as weaknesses and the different opportunities and threats. While running a campaign, the company can make use of a marketing campaign which will guide it on how can the set goals and objectives be achieved. A marketing mix plan usually consists of four elements- product, price, place and promotion. Since customers can make or break a business, an organisation should thus pay primary attention on providing its customers with the bes possible service in order to gain their loyalty and satisfy their overall needs as well as meet expectations. Providing exceptional customer service helps organisations in gaining a competitive advantage against their competitors and also building a goodwill in the market.

Read Also- Managing Change

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