The Marketing Audits Lo1 Marketing Essay

The merchandising Audits Lo1 tomfooleting Essaya. in that respect argon two components of trade purlieu micro and macro components around of these ar uncontrollable and some of them atomic number 18 controllable. Political, economic, neighborly, Technological, Legal forces, and indirect competitors atomic number 18 macro components of this purlieu. These are also uncontrollable forces. Customers, direct competitors, distributors, suppliers, sources of finance and the public are the micro components of the milieu. The audit is the means by which a troupe discharge understand how it is related and integrated to the environment in which it operates. Audit divided into two parts, which are external and internal audit. Market is subject to regular change so food food marketing techniques adopted by a company needs to be dynamic and open to changes. If a company is non ready to embrace the refreshful challenges and opportunities that a changing, developing market has to tin it is doom to diminish its activities. Therefore, like financial auditing marketing auditing is substantial beforehand introducing a advanced marketing plan. For instance, McDonalds did non pay attention to the changing needs of customers and altering market. McDonalds level offtually changed its longer-term strategic marketing plan subsequently gaining a dull understanding of the market. There are number of techniques and mechanisms to pass judgment organizational capabilities such as set chain analysis, SWOT digest, TOWS compendium, Porters phoebe bird Forces, and BCG Matrix. Lets assume that Starbucks is using Value Chain Analysis. It go away go done these points to fully analyze it.Inbound Logistics To acquire one of the superiorest type beans easy Starbucks collaborated with a little town to buy the entire stock of beans available.operations the beans that are bought are roasted in Starbucks own roaster and if the sample is not in the identical qualit y with the separate samples it is being discarded. Therefore, it is a handsome complex operations system.Marketing and Sales TV advertisements are not Starbucks priority. Instead, it is using the most magnateful tool word of mouth marketing and conduct some promotions. Beca engagement, it claims to offer more than coffee, which is Starbucks experience, company are not offering so many promotions and advertisement.Human Resource Management information of all employees is extremely important. Employees are valued and there is a in reality depressed turnover rate.Administration Starbucks is avoiding becoming a traditional organization. Therefore, it doesnt micturate a formal organizational chart. mac HDUserssara screen backgroundScreen diaphysis 2012-06-25 at 5.04.08 PM.pngAs the above font shows, it is inevitable to say that even a quick analysis (internal/external) is a must when considering forming a marketing plan in this volatile market environment.b. For auditing the org anization, we should see at the capabilities of a firm. Our goal is to identify the firms strengths as compared to requirements of the market. Following capabilities drive out be examined turn auditing the organization.Corporate capabilities, Resource audit, Utilization of resources, financial mea convinced(predicate)s, Comparative analysisThere are number of techniques and tools to assess organizational capabilities such as Value chain analysis, SWOT Analysis and BCG Matrix. For Starbucks Ive chose to conduct SWOT Analysis.SWOT AnalysisSWOT ANALYSIS is used for measuring the organizations internal assessment.StrengthsStarbucks offer quality coffee and an experience for customers, which add-on flaw name loyalty and customer satisfaction.Starbucks has high brand equity.Starbucks is operating in 40 countries worldwide with offering same quality. harvest-tide diversification is highVery recognized logo and brandHigh visibility localization of functions is a in effect(p) way of attracting customers and staling share from the competitors healthy relationship with suppliersGood working environment, happy employees lead to satisfied customersWeaknessesPrices are higher compared to competitors.Operating costs are high.Profit of the business depends on coffee equipment casualtys.Starbucks is so much chargeing on expansion, internal focus is ignoredThreatsIncreasing number of competitors.Health conscious people change magnitude the coffee consumption.US market saturation and increasing unemployment rate drinking chocolate price extremely dependent on developing countriesOpportunitiesEntering India, Pakistan and opposite countries with high populationWhole bean sales in supermarketsAdding rising overlapsTechnological advancesNew diffusion channels feller AnalysisPEST ANALYSIS is used for measuring the organizations goals against influences and demands of environment. It is a in truth efficient tool to assess external (uncontrollable) factors in the market. PoliticalRelationship amongst US and countries producing coffee beansThe political perceptual constancy of the countries in potential destinationsThe political stability of the countries, which provides raw materials to StarbucksEnvironmental regulationsIndustry-specific regulationsEconomicDemand for food and beveragesCustomers purchasing powerExchange rate taxationTariffs quotesUnemployment rates in potential destinationsSocialCurrent trends in coffee shops around worldConsumer PreferencesChanges in modus vivendi and occupationEducation of employees and customersTechnologyRD in manufacturingRD in biotech and agricultureRD in ITFollowing social media strategiesMacintosh HDUserssaraDesktopScreen conniption 2012-06-25 at 12.37.59 AM.pngTask 2- Barriers to Marketing Planning LO2a. McDonald defines 5 areas in marketing proviso that whitethorn have problems, which are cultural, behavioral, cognitive, systems procedures and resources.Cultural- leave out of belief in intend or ne ed for changeBehavioral- lack of top management support, lack of team coherenceCognitive- lack of knowledge and skillSystems procedures- lack of informationResources- lack of time, people and moneyMore in depth the barriers are,1. muddiness between marketing tactics and dodging,2. Isolating the marketing blend in from operations,3. wonder between the marketing function and the marketing concept.4. Organizational barriers -the tribal mentality, for example the failure to define strategic business units (SBUs) correctly.5. Lack of in-depth analysis,6. Confusion between process and output.7. Lack of knowledge and skills.8. Lack of a systematic climax to marketing planning,9. Failure to prioritize objectives,10. Hostile corporate culturesb. Ten S FrameworkIn allege to overcome the above barriers McDonalds Ten S Framework commode be used. If they follow this circle strategicallyMacintosh HDUserssaraDesktopScreen Shot 2012-06-25 at 2.43.09 AM.pngAccording to Mc Donald, article of faith I Developing the strategic marketing plan. In this plan, the period should be between three and five days.Principle 2 Marketing function should be as constrictive as possible to the consumers.Principle 3 Define clearly what is marketing.Principle 4 Company activities should be form around customer groups and market segments.Principle 5 S screwing the environment thoroughly (PEST analysis etc.)Principle 6 Scanning the internal environment (SWOT Analysis)Principle 7 Marketing personnel must have skills and technical knowledge for the job.Principle 8 Prepare written procedures, as it is a common and systematic format for marketing planning.Principle 9 Objectives should be prioritized according to allocation of resources, their urgency.Principle 10 Organization should make sure to have the active support and participation of culture attractions.Task 3- The Marketing Plan LO3Starbucks needs to be innovative as the market is so harsh and it has lots of competitors. In additio n to that, profit margins of Starbucks are low so it has to offer the same good quality. Also in order to keep and increase brand loyalty, Starbucks has to offer different ideas all the time. As people get bored tardily of products and services offered. Starbucks is trying to date and embrace new ideas all the time, they have a website called My Starbucks Idea for people. community of interests shares their ideas in this platform and maybe Starbucks would guard some of them1. Developing important products and services for long-term success. Innovative solutions are developed to improve peoples lives and to increase demand to the firm. Also, innovation makes businesses to think about why it wants to do something. It makes businesses to look ahead and think about the possible problems that could be solved. This can be achieved through and through thinking outside the box.New product development is an essential section of any company marketing strategy.There are some ways for new p roduct development. For instance developing/creating products that are whole new to the world (Tablet computers), Product improvements (Panthene Shampoos with conditioner), product modifications (mobile phones), new brands. Starbucks can use these 4 ways to develop products. When we apply these techniques to Starbucks and its productsProducts new to the world rooted(p) Starbucks coffee cubes.Product improvements Coffee mocha that makes you sleep better and tastes stronger.Product modifications Coffee without any fat. Cappuccino with more skimming.New brands Starbucks for juniors-Starkids.Pricing There are several ways for pricing such as price making, price taking, niche marketing, cost-based pricing, market-oriented pricing, price skimming, and price penetration etc. Among these pricing techniques Starbucks can use price making for new products. Since, Starbucks is the market leader. It has the opportunity to arrange the market prices. Price makers can also manipulate the prices more easily to adjust market conditions. Therefore, the autonomy of control is much higher.Distribution Manufacturers can sell directly to customers. Manufacturers can sell to retail merchants and then to customers or producer can sell to wholesaler, wholesaler can sell to retailer and retailer can sell to customer. In this case, Starbucks is the manufacturer, wholesaler (selling to other retailers such as Krogers etc.) and the retailer. In addition to that, instead of traditional ways of dispersion a company can use vertical marketing channel too.In this model, all three functions are integrated. Manufacturer is also in collision with the wholesaler and with the retailer. This includes sharing information, and know-how to ensure that the requirements of customers are always treated as the priority. This is an effective model for Starbucks as it is modern and suitable for Starbucks. In addition to distribution method, company also needs to decide on the distribution intensity o f its products such as exclusive, selective and intense distribution. When it comes to distribution intensity, intensive distribution method is appropriate for Starbucks. Macintosh HDUserssaraDesktopScreen Shot 2012-06-25 at 9.20.43 PM.pngCommunicating The communication tools are advertising, radio, magazines, television channels, direct marketing, in-person selling, promotions, exhibitions, telemarketing, events, public relations, sponsorship, and merchandising.Marketing communications (promotion) change integrity for Starbucks.AdvertisingIf Starbucks opens new location reminder advertising should be done.If Starbucks wants to inform and emphasize the guaranteed satisfaction for consumers weighty advertising should be done.If Starbucks creates a new flavor for a beverage informative advertising should be done.Public relationsThis is an important strategy for Starbucks as it is an essential strategy for community relationship. In addition to that, repute endorsement can be a vi tal strategy to stain younger consumers.Social Media MarketingIn todays world consumers are very connected and social. Therefore, it is extremely important for companies to stay connected with potential consumers.d. The new product for Starbucks is create your own Frappuccino.Firstly, we need a review of the environment (PEST and SWOT). Then we need to conduct 7P Analysis then we need a review of the marketing system. The next thing to do is clarifying goals and objectives. If our objectives and strategies are feasible in terms of the market share, sales, costs and profits we can continue with our plan, if not we should revise our company goals. Finally, we can establish targets and standards.Analysis stageMarketing audit, environmental and organizational analysis (see task 1 for SWOT and PEST)Planning stageSetting objectives is in this part. Customize your Frappuccino will earn 20% of the market share within 2 geezerhood is our new goal for the new product.Implementation stagePro motion mix Informative TV and magazine advertisings for the new product should be done. Also, through Facebook and Twitter social media campaigns will be started.Pricing As the leader of the market, we make the price. For a limited time Customized Frappuccinos are for 4 $ (additional fees may occur due to seasonal changes and excessive amount of selections).Distribution alike strategy vertical marketing channel applies here too.In addition to these, we target people around 15- 45 who enjoy trying new things and have an independent personality.Monitoring stageThe last stage in the marketing planning process is where we monitor the plans performance.This diagram can be used in order to assess and monitor the achievement of the plan. iodin of our short-term goals might be increasing the awareness of this product 30% by the end of two months in Berlin. What is happening? Are we close to achieve it? Why or why not? Macintosh HDUserssaraDesktopScreen Shot 2012-06-26 at 1.19.05 AM.pngTas k 4- Ethical Issues LO4 a. Some honourable paying backs in marketing are product recalls, product issues, product market research, pricing issues (price fixing, predatory pricing etc.). Considering these headings, Starbucks have couple of honest issues, which are also taken into account by social media too. First of all, for years Starbucks claimed their cups are disposable/ green but consumers learnt that it wasnt recyclable. This is a product issue2. There is also another issue that Starbucks is making every other small coffee shops close their doors. Therefore, it is decreasing the competition by getting more and more places (to be more convenient), which can also be discussed whether it is ethical or not. Since, Starbucks is a very big company and has good relationship with the coffee beans suppliers, it is buying all of the premium coffee beans in a very small town, which is un bonny to other competitors.b. Marketing immingle Ethical Issues Because, Starbucks advertised i ts coffee cups as green it is false or misleading advertising. This may damage the reputation of the company and decrease brand loyalty. One of the major ethical problem and its implication on the distribution is the restrictions of supply. There is a small town, which produces high quality, premium coffee beans and their product is bought buy Starbucks only. Starbucks buy large quantities of coffee beans compared to its competitors throughout the world whence it is inevitable to state that Starbucks both will have negative and absolute image among consumers, competitors and media. Ethical issues will arise, the main(prenominal) success is diminishing and eliminating this ethical issues with sponsorship or good corporate relationships. Personal selling and counterfeiting (other ethical issues) dont apply to Starbucks case.c. Starbucks is the only coffee shop (comparing to Costa or Coffee Nero) that sells fair trade coffee. Fairtrade guarantees a minimum price that tracks slightly above market rates, the Rainforest Alliance label only guarantees that 30% of coffee beans in a product have been certified3. In my point of view, the main ethical issue Starbucks is their strategy of expanding. It ignores other smaller shops and other topically owned coffee shops go out of business and face bankruptcy. The Fairtrade Mark guarantees that Third World producers get a superior arrangement for the goods that they develop.