BSBMKG603: Manage the Marketing Process ASSESSMENT TIPS CHRIS ZORBAS TRAINER & ASSESSOR Key Points You are the marketing manager for a chain of home-ware stores in Brisbane called Houzit You are required to develop a management plan for provided marketing information to monitor and review its progress after a period of time You will also need to: ◦ delegate roles to individuals within the organization, ◦ establish and use KPIs to assess progress, and ◦ communicate information about marketing activities as required Case Study Carefully read the Case Study provided You SHOULD read the Case Study several times to ensure you do not miss any critical information and interpretations I strongly advise you TAKE NOTES as you read EACH paragraph of the case Study ◦ Notes should include an interpretation of what the case study is telling you (for each paragraph) ◦ You will find all 3 of the KPI’s which you must incorporate in your plan as set out by management ◦ These include all sales targets, market share objectives and the customer acquisition cost Procedures and Specifications of the Assessment You must provide: A management plan for the marketing activities, with clear strategies and actionsfor the achievement of marketing objectives including meeting details with CEO [Steps 1–7] ◦ This can be found in TASK 1 on Page 5 Staffing support plan [Steps 1-4] ◦ This can be found in TASK 2 on Page 5 & 6 Your report must be of minimum 3000 words to address all the above points. Task 1 Using the case study information provided, develop a management plan for the marketing activities being conducted within your organization. This should include information under the following headings: ◦ Marketing activities ◦ Integration of organizational activities ◦ Monitor progress ◦ Distributing and pricing ◦ KPIs ◦ Develop a communications strategy ◦ Delegation of roles and responsibilities ◦ Communication HINT: Task 1 Q1 1. Marketing activities: Review proposed marketing activities and accompanying information to identify and describe three activities that show the potential for the organization (within the established marketing objectives). Note: Marketing activities are any activities that a business or organization undertakes to build brand awareness. Website design is a crucial marketing activity for any business. Search Engine Optimization [SEO]: using keywords in the heading and title tags, as well as the copy and the URL, is crucial to getting a website onto the first page of search engine results. The right sort of consistent image [look & feel] is crucial. This can be anything from Print materials such as business cards to in-store posters, banners and advertisements including online. Consistency is the key. HINT: Task 1 Q1 Suggestion: You can base this on the expertise within your team (refer T1Q7 on DELEGATION). You would be able to incorporate marketing activities outlined in the Case Study. This could include: ◦ Magazine advertising and PR ◦ In-store promotions ◦ Web based promotions Useful Links: 52 Types of Marketing Strategies http://cultbranding.com/ceo/52-types-of-marketing-strategies/ HINT: Task 1 Q1 DIRECT MARKETING - TAKING THE MESSAGE DIRECTLY TO THE CONSUMER ◦ Mail order catalogues ◦ Bulk mail ◦ Personalised letters ◦ Email ◦ Telemarketing ◦ Point of sale displays ◦ Packaging design DIGITAL MARKETING – NEW CHANNELS ARE EMERGING CONSTANTLY ◦ Company websites ◦ Social media applications such as Facebook or Twitter ◦ Blogging ◦ Mobile phone promotions using technology such as bluetooth ◦ YouTube ◦ E-commerce Here are some further suggestions of marketing activities for you to consider. Research further information using key word searches as discussed in class. HINT: Task 1 Q1 ADVERTISING – A MASS MEDIA APPROACH TO PROMOTION ◦ Outdoor ◦ Business directories ◦ Magazines / newspapers ◦ TV / cinema ◦ Radio SALES PROMOTION - PRICE / MONEY RELATED COMMUNICATIONS ◦ Coupons ◦ Discounts ◦ Competitions ◦ Loyalty incentives Here are some further suggestions of marketing activities for you to consider. Research further information using key word searches as discussed in class. HINT: Task 1 Q2 2. Integration of organizational activities: Discuss and prepare a brief summary describing how the range of marketing, promotional and sales activities (detailed in the provided case study information) can be integrated to ensure the achievement of the established marketing activities. Note: Integrated marketing is a marketing strategy that stresses the importance of a consistent, seamless, multi-dimensional brand experience for the consumer. This means that each branding effort – across television, radio, print, Internet, and in person – is presented in a similar style that reinforces the brand’s ultimate message HINT: Task 1 Q2 Further Note: Once you have decided which media channel to concentrate on, the next step is to ensure an integrated approach is taken. Regardless of whether you are promoting a new product or raising awareness, it's important that all ads across all media work together towards a common goal by using similar messaging and 'look and feel'. An integrated approach can dramatically increase the effectiveness of any campaign and will help create your brand image. HINT: Task 1 Q2 Suggestion: How will YOU ensure that ALL marketing for Houzit is integrated? Explain how YOU will merge traditional marketing activities and channels with digital media. This may include: ◦ incorporating the Houzit website URL on all published print advertising, radio and TV adverts etc. ◦ developing a consistent group of key words for website searches Useful Links: https://en.wikipedia.org/wiki/Integrated_marketing_communications http://www.smartinsights.com/traffic-building-strategy/integrated-marketingcommunications/three-examples-integrated-campaigns/ HINT: Task 1 Q3 3. Monitor progress: Monitor the product, distribution, pricing and marketing communication policies in relation to market changes, marketing plan objectives and organizational requirements. Monitoring progress would also involve an evaluation of statistical and data techniques to measure marketing performance. Suggestion: ◦ Detail your plan on HOW you will provide updates via regular progress on performance ◦ It must include plan for how distribution and pricing can be monitored over time ◦ How will YOU monitor to market changes [competitors & customer trends etc.] and any adjustments in Houzit requirements ◦ Include tables and charts to meet the requirements of the underlined section above relating to statistics HINT: Task 1 Q4 4. Distributing and pricing: Review the proposed models for distribution and pricing of product, and describe how this should be adjusted to allow for the market fluctuations (as identified in the case study). Note: Distribution: In today’s fast paced world, distribution by a company can be an enormous competitive advantage. Most companies target their customers far and wide. Because of the rising costs, companies are trying to expand in various markets so that they have a higher turnover and hence a higher margin. Many retailers decide that they best way to expand their business is by selling in different sales channels. This could mean a new eCommerce site, physical store, online marketplaces like Amazon or eBay, or B2B retail. HINT: Task 1 Q4 Pricing: How you set your prices can have a host of implications for your business. Not every price you set needs to maximize your margins. Many small businesses use price to compete, change market share or create different revenue scenarios. Understanding how pricing affects your business model, not just your bottom line, will help you better choose price levels. Pricing Strategies include: ◦ Everyday Low Pricing ◦ High/Low Pricing ◦ Odd Pricing ◦ Leader Pricing ◦ Multiple Unit Pricing/Price Bundling ◦ Price Lining ◦ One-Price Policy HINT: Task 1 Q4 Suggestion: Determine the best way to offer your products to a greater number of customers. In general, this can be done in two ways: selling more of your existing product or selling new products. What DISTRIBUTION channels will you use to get to more customers? There are NO new stores in the plan so eCommerce [online store] is the only other obvious option. Detail your plans on how this will happen How will YOU build a competitive advantage through distribution? [describe your model of retail stores and online via an improved website for example] Refer to Paragraph 2 where it mentions “seasonal adjustment” and paragraph 5 where it states: “The next six-month campaign is designed to take advantage of the seasonal growth in bathroom fittings and mirror categories with linkages to the other two categories of Houzit: bedroom fittings and decorative items’. HINT: Task 1 Q5 5. KPIs: Provide a plan for how progress (using the metrics of return-of-market-investment and market share) can be measured against performance targets, to ensure that marketing requirements are being met. Note: KPI = Key performance Indicators are a type of performance measurement, KPIs are commonly used by an organization to evaluate its success or the success of a particular activity in which it is engaged. Marketing performance metrics or key performance indicators (KPIs) are useful not only for marketing professionals, but also for non-marketing executives. These metrics help measure the degree to which marketing spending contributes to profits. It also highlights how marketing contributes to, and complements, initiatives in other areas of the organization, such as sales and customer service. HINT: Task 1 Q5 Suggestion: KPI’s are provided for you in the Case Study. They refer to: ◦ Increase in sales revenue [measured in terms of % increase over previous year] ◦ Increase in market share [measured in terms of % increase over previous year] ◦ A benchmark (standard) for the cost of acquiring new customers [measured in terms of % of sales cost] These are KPIs that the board wants monitored along with the sales and market share percentage increases. Useful Links: http://blog.marketo.com/2013/11/prove-your-worth10-kpis-for-marketers.html https://www.klipfolio.com/resources/kpi-examples/marketing#gref HINT: Task 1 Q5 Note: Cost of Customer Acquisition (COCA) The cost of customer acquisition (CAC) means the price you pay to acquire a new customer. In its simplest form, it can be worked out by: Dividing the total costs associated with acquisition by total new customers, within a specific time period For example: If you spent $200,000 on sales and marketing in a month and closed 200 new customers that month, then your COCA would be $1,000. Useful Links: https://en.wikipedia.org/wiki/Customer_acquisition_cost (200 000/200 = 1000 per customer) HINT: Task 1 Q6 6. Develop a communications strategy: Once you have provided the information above, you need to meet with the CEO (your assessor), and discuss with them the information you have gathered about the proposed marketing activities and your management plan. Note: What is a communications strategy (Internal) Proper communication ensures everyone is on the same page and things flow a little easier. That’s why you want to make sure you are getting your message across as clearly as possible. A communication strategy is designed to help your organisation communicate effectively and meet core organisational and/or project objectives. You should identify those audiences with whom you need to communicate to achieve your organisational objectives. This Question refers to INTERNAL COMMUNICATIONS: within HOUZIT homewares HINT: Task 1 Q6 Suggestion: How will you gather and share information with key stakeholders to ensure your marketing activities are successful? Consider incorporating store visits, using emails and team meetings such as project progress status etc. Adding a TABLE outlining the methods of INTERNAL COMMUNICATIONS in this section is a good idea to support your explanation/plan. Check with your Trainer/Assessor for feedback on your communication strategy if you are uncertain. Useful Links: How to Develop a Communications Plan http://www.hieran.com/comet/howto.html HINT: Task 1 Q7 7. Delegation of roles and responsibilities: Develop draft staffing proposals for the delegation of roles and responsibilities for various marketing activities and efforts within your organization. For Example. The Case Study states: “You are assisted in the marketing role by Marie and Tony. Marie manages the advertising/PR while Tony is a specialist search engine optimizer and webpage designer. You enjoy taking responsibility for the in-store promotions because it keeps you connected with the key personnel and the trends in merchandise category sales. Lamberts Consulting are also a preferred supplier of market research, marketing audits and marketing consultancy” HINT: Task 1 Q7 Interpretation: ◦ You can DELEGATE the advertising/PR to Marie ◦ You can DELEGATE Tony to all matter relating to Online/digital specialties as a search engine optimizer and webpage designer ◦ You can be responsible for in-store promotions within each of the stores ◦ Lamberts Consulting can be DELEGATED the tasks relating to marketing research etc. Suggestion: ◦ Create a DELEGATION TABLE assigning ALL the key responsibilities to each of the available resources including yourself ◦ Explain using examples of the key areas that each person is responsible for HINT: Task 1 Q8 8. Communication: Describing the communication strategies to be put in place to assist individuals in working together to achieve marketing objectives. Note: A communications strategy, also referred to as a communications plan, is a document that expresses the goals and methods of an organization's outreach activities, including what an organization wishes to share with the public and whom the organization is trying to reach. Generally presented as an internal document, a communications strategy should serve as a guide for any media and public relations activities in which the organization is engaged. HINT: Task 1 Q8 Suggestion: Your communications plan should: ◦ identify key stakeholders including their duties and responsibilities ◦ provide a logical and sequential timeline for achievement of milestones ◦ Include various communication methodology to be used to effectively promote clear and current communication of progress and any necessary course corrections Useful Links: https://qorf.org.au/wp-content/uploads/2015/01/SPARC-Stakeholder-Communications.pdf http://www.nationalarchives.gov.uk/documents/archives/effective-communications.pdf https://knowhownonprofit.org/campaigns/communications/communications-strategy Task 1 Complete: Good Work ! Well done. Take a short break and proceed with Task 2 Task 2 Develop a staffing support plan for supporting through individuals and work teams with delegated roles and responsibilities within your organization. This should include information under the following headings: ◦ Strategies ◦ Resources ◦ Feedback ◦ Performance HINT: Task 2 Q1 1. Strategies: specific strategies for mentoring and coaching of staff throughout the period of the proposed marketing activities Note: Mentoring relates primarily to the identification and nurturing of potential for the whole person. It can be a long-term relationship, where the goals may change but are always set by the learner. Coaching relates primarily to performance improvement (often short-term) in a specific skills area. The goals, or at least the intermediate or sub-goals, are typically set with or at the suggestion of the coach. Suggestion: ◦ Research coaching and mentoring (use the links provided as well as your own search) ◦ Start my DEFINING and then identify differences between mentoring and coaching ◦ Determine who should be coached and who is to be mentored and by whom within and external to Houzit ◦ Identify the area for mentoring or coaching that is required by your staff HINT: Task 2 Q1 Example: Coaching for Delegation ◦ Delegate: Articulate the results you want to see, set parameters, determine what support the employee needs, and set times to conduct progress reviews along the way. Do your staff (Marie, Tony, lamberts Consulting) have the: ◦ skill, ◦ experience, ◦ qualification and confidence to carry out the tasks you need done? Useful Links: http://smallbusiness.chron.com/strategies-techniques-mentoring-coaching-23317.html http://www.dummies.com/business/human-resources/employee-engagement/tips-forsuccessful-employee-coaching-and-mentoring/ HINT: Task 2 Q2 2. Resources: models for assessing use of resources provided to attain required marketing outcomes Note: Methodologies and data sources Data collection methodologies can include the following: ◦ Key person interviews – this includes subject matter experts within and outside of your team ◦ Focus group discussions - a good way to gather together people from similar backgrounds or experiences to discuss a specific topic of interest ◦ Engagement with a representative range of stakeholders – this includes your team, senior management, external consultants, perhaps suppliers and any key customers you may have (not personal customers but perhaps corporate customers eg, restaurants or hotels/motels that may buy homewares to decorate their establishments etc. Get creative! HINT: Task 2 Q2 Suggestion: ◦ Gather information from Key people within Houzit ◦ Identify priorities that represent the greatest need or are most urgent ◦ Greatest return (ROMI) to meet objective ◦ Reports from the accounting information system ◦ % new customer acquisition cost Useful Links: Return on marketing investment (ROMI) http://whatis.techtarget.com/definition/return-on-marketing-investment-ROMI Introduction To Accounting Information Systems (Video) http://www.investopedia.com/articles/professionaleducation/11/accounting-information-systems.asp HINT: Task 2 Q3 3. Feedback: a model and mechanism for providing feedback to staff throughout the process Note: Feedback is about giving information in a way that encourages the recipient to accept it, reflect on it, learn from it, and hopefully make changes for the better. Being able to give feedback is a skill that is useful in our personal and professional lives. In an organizational context, feedback is the information sent to an entity (individual or a group) about its prior behaviour so that the entity may adjust its current and future behaviour to achieve the desired result. The reasons most often given for establishing a feedback mechanism are to support accountability, transparency, empowerment, monitoring and evaluation, and programme improvement, and to provide early warning of impending problems. HINT: Task 2 Q3 Feedback is central to developing learners' competence and confidence at all stages of their careers. As a skill, feedback needs practice to improve. Specifically, feedback can: ◦ Clarify good performance ◦ Help develop self-assessment (reflection) ◦ Deliver high quality information ◦ Encourage dialogue ◦ Encourage motivational belief and self-esteem ◦ Provide opportunities to close the gap ◦ Provide information to managers, coaches and mentors to improve training and development support Useful Links: http://www.businessdictionary.com/definition/feedback.html https://www.westernsydney.edu.au/qilt/qilt/assessment/staff_feedback_toolkit/the_importanc e_of_effective_feedback HINT: Task 2 Q3 Suggestion: Think about some of the tools you can use to encourage the exchange of feedback within your team and the rest of the HOUZIT organisation. How can you gather information and how can you share it to ensure everything is working according to plan? How will your staff know they are on the right track? Do some research and consider some the tools listed below: ◦ Mystery shopper ◦ Store visits ◦ Informal chat ◦ Formal meeting (review) ◦ 360C feedback HINT: Task 2 Q4 4. Performance: a process to be used for identifying weaknesses in individual and team performance (in meeting the requirements of the marketing objectives for the delegated marketing activities) and instigate corrective actions when required. Note: Employee performance is a complex mix of skills, knowledge, ability, attitude, effort and results. Performance management aims to maximise employee performance and align individual and team effort with organisational goals and objectives. Creating a performance management culture makes good business sense and may also provide an organisation with a competitive advantage. An important component of the review process is ensuring that the employee understands the inherent responsibilities, goals and objectives of the position. HINT: Task 2 Q4 Suggestion: What methods will you use to assess performance? You may consider: ◦ Feedback from team members: I suggest creating an employee feedback form, a performance appraisal form and discuss how the process of providing evaluation and review ◦ Observation of team performance: Explain what data is to be collected, how observation will be done, when and where to observe, how the data will be collected and what the data will be used for after analysis. ◦ Marketing Audit: Perhaps you can utilize Lamberts Consulting to audits the performance of the marketing team: ◦ KPI’s: what are the industry benchmarks (is there a competitor you would like to benchmark your performance on) ◦ what targets where put in place, what was achieved? Task 2 Complete: Well Done! That’s excellent. Take a moment to enjoy your achievement….ok that’s enough…review your document to make sure ALL is OK and ready to upload to Moodle.