Monitoring and evaluating is a strength in SAP’S marketing plan as it allows the businesses to assess the effectiveness of its marketing strategies and Identify possible areas of improvement New Product Development Process SAP’S new product development process Involves continuous R&D, Improvement and future planning. Due to shortening product lifestyles, new products are constantly being developed to ensure that If one goes Into decline or reaches the end of Its life cycle, others are ready to be Implemented.
This strategy Is a strength In SAP’S marketing plan as It enables the business to engage consumers with constantly updated products. Customer-oriented Marketing Rationale SAP’S customer-oriented marketing rationale Is aimed at Increasing customer distraction, the magnitude of visitors and revenue. Market segmentation processes The customer-oriented marketing rationale is a strength in SAPS marketing plan as it enables marketing strategies to be refined to appeal to particular customers, and hence influence their choices.
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Weaknesses in SAP’S Marketing Plan and Recommendations for Improvement Pricing Strategy Despite SAPS consumer orientation, a weakness is evident in the diversity of its pricing strategy. The only type of ticket available is a full day pass, and no discounts are available to the general public. To cater to the individual needs of SAPS broad argue market, it is recommended that relationship marketing and sales promotion are adopted. Examples of relationship marketing could include offering seasonal passes or discounts for families in order to create long-term, cost effective relationships with customers.
A sales promotion strategy could involve offering discount coupons to entice new customers, and existing customers for repeat purchases. Corporate Social Responsibility Increasing public concern over social and environmental issues has led to consumers seeking businesses with corporate social responsibility. The absence of corporate social responsibility is a weakness in SAPS marketing plan. It is recommended that this is developed and incorporated into SAPS marketing plan in order to increase customer satisfaction.
Promotion Strategy SAPS promotion strategy is limited in its scope due to its underused of free advertising and e-marketing. In order to reach a broader audience, it is recommended that JAPE utilizes publicity, public relations and social media advertising. Publicity and public relations include free advertising methods, such as speeches and newspaper articles, and could aid JAPE in promoting a desirable image. Social media advertising, such as Backbone and Twitter, is a key mode through which JAPE can raise awareness of the business to their primary target market.
CONCLUSION SAP’S marketing plan has many strengths, however several adjustments need to be made. Recommendations include: Relationship marketing and sales promotion Corporate social responsibility Publicity, public relations and social media advertising. Incorporating these into SAPS marketing plan will better ensure that the marketing objectives are reached, and business success is maintained. Thomas Saba and its Marketing Objectives Thomas Saba is a global luxury fashion brand which creates affordable, high quality jewelry and fragrances for men and women.
The brand is well known for its unique sterling silver pieces, including pendants, bracelets, rings, earrings, necklaces and cufflinks, and also has a range of affordable diamond Jewelry and watches. The business is constantly updating its Jewelry lines. One of its 2013 product ranges is Charm Club, which includes a wide variety of women’s charms so that customers can personalize their pendants and bracelets to meet their own preferences. Thomas Saba’s overall marketing objectives are to:
Increase market share and sales Continue expanding product ranges Maximize customer satisfaction Target Market Thomas Saba’s target market for the Charm Club range is broad due to the elegant simplicity, timeless quality, and cost affective nature of its Jewelry pieces. The target markets include the following: Primary market: fashion-conscious women between the ages of 18 – 40 Secondary market: teenage women, and women above 40 seeking gifts. Other market: men between the ages of 20-60 seeking gifts. The needs and wants of these particular target markets will be determined through market segmentation.
Four main categories will be used including; demographic, geographic, cryptographic, and behavioral segmentation. The Marketing Mix Developing a marketing mix will enable Thomas Saba to effectively position marketing strategies for the Charm Club towards its target market, whilst simplifying its promotional and distribution systems. The four up’s of the marketing mix including product, price, promotion and place should be established during the introductory phase of the Charm Club, and re-evaluated when it begins to decline.
Product: Using product as a marketing strategy will involve determining the design, quality, canning, brand name and guarantee that will be associated with the Jewelry pieces. During the development of the Charm Club products, particular attention should be bayed to the needs and wants of the target market outlined above so that the business can determine which designs to manufacture. Currently the range includes symbols such as hearts, clovers, keys and zodiac signs, as well as pictures such as animals and sport symbols. This indicates that the increasing consumer desire for personalized products has been considered.
It is imperative that the Charm Club Jewelry line possesses a high quality so that consumers will associate restive with ownership, and hence want to buy it. Since the Thomas Saba brand name has already been determined, incorporating a logo or symbol onto the packaging that represents the brand will enable increased brand circulation, awareness and desire. Providing a product guarantee of no less than 1 year will reinforce the high quality of the Charm Club Jewelry, and maintain brand loyalty Developing the price of the Charm Club pieces will be primarily based on maintaining Thomas Saba’s cost effective, luxury brand reputation.
Selling small, individual charms enables this to be achieved, as it encourages small additions onto bracelet or necklace which will gradually increase in overall value. Price points; setting the Jewelry at predetermined prices should be used, and though the perception of individual charm prices should be ‘cost effective’ for luxury items, premium pricing should be used. The quality of the Jewelry should not need to be compromised on, as this could potentially damage the reputation of Thomas Saba.
Gift cards should be available to promote the Charm Club range as a gift idea. Promotion: A wide range of promotional strategies should be adopted to ensure that consumers are aware of Thomas Saba’s Charm Club range. These promotional strategies will include: Advertising: large photographs and fashion campaigns for the Charm Club range are to be displayed through: mass marketing such television and women’s magazines, social media marketing such as Backbone and Twitter, and billboards in various locations such as bus stops and outside Thomas Saba stores.
Personal selling: this will be conducted by sales consultants to familiarize customers with the Charm Club range as they enter Thomas Saba stores. Relationship marketing: loyal customers will be offered gifts on special occasions such as birthdays to foster long- term relationships. Publicity and public relations: free publicity through newspapers and online blobs will be sought out to ensure that Charm Club range is continuously in the public eye. Paid Thomas Saba employees will maintain social media pages such as on Backbone and Twitter.
In good faith, the business will also donate to charities; however this will also assist in promoting a positive brand image. Sales promotion should be avoided as it could risk damaging the prestige reputation of the brand. Place: Thomas Saba has stores across the globe including in Germany, France, Hungary, Netherlands, Switzerland, Austria, Canada, and Australia. To ensure that there is a high demand for the Charm Club range it will initially be marketed and released in one country only. If it is successful, the line will then be expanded internationally.
The channels of distribution the Jewelry will go through will be from the ‘producer to retailer to consumer’ in order to keep the cost of logistics to a minimum. This process will be relatively ‘invisible’ to the consumer, as a larger emphasis will be placed on marketing other aspects of the business. Online purchasing should be available to increase the accessibility of the Charm Club range to customers. Implementation of the Marketing Plan In order for Thomas Saba to implement a marketing plan for the Charm Club range, a marketing process needs to be developed.
A situational analysis, such as a SOOT analysis should firstly be used to determine the strengths, weaknesses, opportunities and threats of Thomas Saba’s current business situation, and in doing so identify possible areas of improvement. Next, market research should be undertaken to ensure there is a market for the Charm Club range, and to determine what consumers want to gain from it. Thirdly, broad market objectives should be established which are aimed at ultimately producing a profit. Then, target markets wants.
Finally, strategies for the implementation, controlling and monitoring of the marketing plan can be determined. The implementation of the Charm Club marketing plan will be reliant on its degree of integration with Thomas Saba’s other key business functions. The marketing plan must be attainable from the business’s operations, financial and human resource perspectives. Marketing managers will be employed and constant communication between all aspects of the business will be maintained to ensure the marketing objectives can be reached.
Experts in fields such as advertising, market analytics and product development will also be employed and revived with sufficient goals and motivation to ensure that the marketing plan can be undertaken. Monitoring and Controlling of the Marketing Plan Monitoring and controlling the Charm Club marketing plan will be achieved through establishing specific and measurable marketing objectives, monitoring performance, evaluating performance, and then taking corrective action.
Marketing objectives will be determined through: Monetary key business indicators (such as monthly and yearly sales objectives) Developing financial forecasts (including costs and revenue estimates). Monitoring ND evaluating performance will be undertaken through: Sales analysis; whereby actual Jewelry sales will be compared against forecasted sales to determine the effectiveness of the marketing strategy. Market share analysis; whereby the effectiveness of the marketing strategy will be evaluated against Thomas Saba’s competitors.
Marketing profitability analysis; whereby each marketing strategy used by the business will be separated in order to identify which methods were the most cost-effective. Corrective action will be taken through: Making appropriate changes in the marketing mix; these could include making reduction, price, promotion, or place modifications where there is room for inflation or reduction. Developing new products; this could include either extending the Charm Club product range or creating new Jewelry products to take its place.
Product deletion where appropriate; if the Charm Club range goes into decline, it may have to be eliminated to ensure that Thomas Saba remains a successful business. Ethical and Legal Issues Associated with Marketing One of the ethical issues which may arise as a response to Thomas Saba’s Charm Club marketing ventures is accusations of fostering materialism through creating received needs and using powerful marketing strategies to manipulate the minds of consumers. The best way that the business can combat these accusations is through ensuring truth and accuracy is used in all advertising endeavourers.
Ethical consumerism and the fair trade movement are consumer driven practices which emphasis the ethical treatment of animals, society and the environment. In order to satisfy the growing number of consumers concerned with these issues, the production of the Charm Club line must be ethically responsible including fair labor practices and sustainable production and marketing. Honest and ethical marketing practices are crucial to maintaining Thomas Saba’s customer base.