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Diploma in Business (Marketing)
Unit Number and Title
Unit 9 Marketing Planning
According to Kotler, (2013) marketing is a social process through which people or group of people obtain what they need by exchanging ideas and goods with each other. The concept of market planning may be defined as the intent to identify, predict and satisfy the customer’s demand in such a manner that producer makes a profit. In a simpler manner, marketing can be explained as the amalgam of a controlled analysis of planning programs, designing them and then, implementing them to achieve the targets of organizational objectives.
Referring from Winchester et al (1997), marketing plan is an all-purpose tool that enables the management to know everything related the company. It is an indication that shows marketing management what is the flaws of their plan, how to succeed in their goals and redefine the direction in a new market or new product against the competitors. Nonetheless, it shall be responsive that a good marketing plan must contain with the consideration of changing perspectives.
The recent changes that have occurred in the market can be depicted with a case study. Here, I have chosen the case of a Car Rental service that is based in St. Louis, Missouri and was founded in 1957 with efforts from Jack C. Taylor. This is named Rent-A-Car. It is located around in 5400 locations in the city, covering about 400 airport locations. As per Detroit News, this company busy around 7% of the number of vehicles sold in the nation (Cateora, 2007).
One most valuable strategy used by the company to grow its business was Igor Ansoff’s Matrix (1965). The four marketing strategies used by them according to Ansoff’s Matrix suggest:
Here in figure 1.0 we can see Ansoff’s(1965) matrix used by ENTERPRISE. The arrows explaining the increase in risk associated through the above explained method.
Diversification is risky tactic that is considered when a business tends to expand itself in the external experience areas and suggesting an entire new consumer group. In this process one organization has to also bear the additive costs of the development of the new product. Thus, enterprise had more attention over the growth of market development, product development and diversification.
Therefore Enterprise became the most successful car rental service using market planning strategies irrespective of the downfall of economies (Times 100 business case studies, 2014).
Organizational capability is defined as the summation of the company’s capability, strengths, weaknesses, resources etc. It can be simply termed as the ability of a company to cope up with the competitive marketing conditions and bring in opportunistic momentum for the business.
Following are the major types of marketing practices:
Following are the enterprises organizational power:
Enterprise has always focused on the most basic requirement of a business model i.e. Customer service and satisfaction, for example, this is a beneficial service for the customers as local pick-up service is provided to the customers; they can be taken to the branch to receive their service. This makes the company a reliable and credible brand.
Organization capabilities of enterprise rent-a-car are as follows:
Enterprise’s SWOT analysis has shown below:
Enterprise’s PEST analysis has shown below:
Duties to be imported on company cars
Competitive attitude, Several political matters including heavy duties
The emergence of diversified customers
An increment in capacity
Economies of scale
A range of differences among the competitors
Environmentally safe cars
New trend of rental services
Varying customer tastes
Efficiency of the company
OVERALL MARKETING ATRRACTIVENESS
The business is quite appealing in today’s market situation
This will let customers opt for rental services for travelling.
Enterprise Rent-A-Car – Five forces Analysis:
As per the SWOT analysis of Enterprise explained above, we can observe multiple strengths within the company. Enterprise always work hard to achieve excellence and to build good customer bonding in order to develop a long-term relationship, thus resulting into a long term profit. However, some hurdles always remain a part of consumers’ dissatisfaction. One of them is the trouble that a consumer needs to face with the unavailability of one-way rental services at the nearby branches (local ones). The second cause of concern is the issue of high costs that are incurred on maintenance purposes. The main opportunity for Enterprise is growing global car rental business and use of internet for booking. Consumers need rental cars for numerous reasons 24/7. Some basic threats to the company are uncertain fuel prices (mostly increasing), high labour costs and internet rates.
As per the PEST analysis that has been explained above, due to a rise in competitiveness in air tourism, car industry has suffered a steep decline. As soon as the recessionary situation gets recovered, travelling will take place in full swing once again. Apart from this, this has also led to the increment in revenues from non-airport locations (Rental, 2010). There are a number of issues such as legislation, taxes, duties that are imposed on the commercial vehicles. There is an irritable rate of 18% taxes in local locations and around thirty percent at airport locations. Many economic issues like mergers and strategic alliances, excess capacities, diversification affects gradually on the business of organization. As for social factors within the industry, consumers always have different tastes in vehicle choices. Technological factors such as, E-commerce, safety and plant efficiency have their own individual affects (Majaro, 2013).
A strong marketing strategy and planning is essential and vital component for any organisation. However, sometimes, there are certain barriers of marketing planning. For example,
There should be a very sound marketing strategy if one wants the company to grow. However,
following are some of the hurdles that come up at times:
Figure 2.0 showing the revenue chart of Enterprise Rent-A-Car.
A ten rules plan can also be used by enterprise rent-a-car in order to overcome the barriers in market planning, which are as follows:
To achieve a great height in business arena an organization must follow a good marketing plan and avoid any kind of barriers in the implementation of marketing plan of the organization.
Marketing plan provide information that enables stakeholders to measure the progress and highlighted the most appropriate marketing strategies. An effective marketing plan helps to increase product sales and enhance company profit margins. There are several advantages of market plan, it contains:
Enterprise Rent-A-Car has more than 70,000 employees. It also has a large number of fleet of cars with over one million vehicles in many different countries. Enterprise is one of the leading taxi service companies in the world with having a record of a largest buyer of the cars on planet. The company do not sell any kind of product but it is a service provider with the use of car. In order to provide holistic services to the customers, an enterprise recruits skilled and professional employees. This helps an Enterprise achieves its business, corporate and marketing objectives. (Majaro, 2013)
New product development in enterprise Rent-a-Car includes launch of the new smart phone based application for various operating platforms such as Windows, android and iOS. The mobile application will used for booking the car; it will work on the basis of location of the user. Also for initial setup company can provide various promotional schemes for their application like using referral codes, adding discounts, free airport drops etc.
Pricing policy- Enterprise Rent-A-Car has various plans for its consumer such as Economy, Intermediate, Standard and Full size special rates. It may vary from $9.99 to $19.99 per day. The profit is shared through all around organization which consists of a very large number of employees with 7,700 rental offices in 5 different countries (Forbes list, 2011).
Distribution mix- Enterprise Rent-A-Car has always located its branches nearer to its consumer. Having that mentality in mind Enterprise initiated an on-airport setup in the year 1995. This demand grew up in 10 years so much that company ended up with 200 on-airport branches till 2005. This is the main cause behind the success of Enterprise.
After selected a distribution way for the product, it should be concentrate with the product price. Price policy would directly affects the product sales, how much profit or loss company gain, to whom it is sold and what types of services should be attach. There are no fixed rules for setting the right place for a new product however it should always take into account the product design cost, the distribution, the promotional and the labour cost. The only recommendation in pricing strategy is to be sensitive, sensitive with the production cost, marketing cost.
Communication mix- In communication mix Enterprise has acquired a phenomenon stage. Communication plays a vital role in a successful business organization. Once a product gets launched in the market, the organization holds the sole responsibility to neglect away the personal rivalries among them. If the human resource is not willing to share its resources between each other than that situation might be a dangerous scenario for a multinational group like Enterprise. So it should be solved within the organization to cover up the marketing issues regarding their support.
In order to maximize profits and minimize risks in a business, the only reliable way is to tailor a suitable marketing plan with the particular needs meanwhile using available marketing tools and information to enhance the flexibility. However, it is remarkable that there are few factors should be concern with as there would affect the effective implementation of the marketing plan or even impair the whole picture. On receiving a fabulous response from the entire North America Enterprise has gained a lot of reputation among its local as well as global markets due to its availability at most consumer friendly locations. One of the main barriers in the corporate scenario is:
Isolating the marketing functions from operations- when recession was at its peak, every company tried to make balance by introducing various cost cutting methods. Many organizations decrease the marketing feeling that it would affect their budget in hard times. Isolation of market can bring in negative impacts in a business. So, a clear plan of cost efficiency must be implied in those scenarios to avoid any kind of negative impact (Hathaway, 2009)
The fundamental job of marketing ethics is to stop anyone to take advantage of others from unethical activities. After the practicing of ethics in marketing the standards of rightfulness, morals and frauds in the business organizations have been gradually decreased. Ethical values must be imposed strictly on organizations to fulfil all the requirements of the consumer, rather to provide just goods and services to them. The sole reason for an organization to build and behave ethically is important to improve a positive bond between the producer and the consumer. Also, when a consumer receives a full satisfaction from the services and goods provided to him/her by the organization. They tend to grow a positive approach towards the company which provides those services. When a company establishes unethical nature with its services, it heads towards customer’s dissatisfaction, losing the opportunity of business, negative brand value, negative marketing and may be a legal issue by the consumer. Ethical issues affect directly and indirectly on four main elements of marketing, they are:
Organization such as Rent a car must avoid the following unethical issues:
In a simple manner if any organization wants to initiate or grow their ethical issues, it can be achieved by a two-step process. Firstly top level officials should boost ethical consciousness to their second-string by updating them about ethical values. The executive group of employees should be crafting ethical guidelines that work in the favour of the whole organization. There are numerous examples about the response over ethical issues from various organizations such as a recent activity by product recall of famous baby Product Company (Jhonson&jhonson’s) on 6th May, 2013.After 20 year of struggle and controversy, consumer activists were finally able to convince them (Jhonson&jhonson’s) to remove known carcinogens from their products (Zummo, 2013).
A shampoo made by the company with a tag of “no more tears” had the presence of formaldehyde in it which had adverse effects. In response to consumer pressure the company removed the chemicals from the product and removed the existing ones from stores. Not only from its baby products (Jhonson&jhonson’s) but also promised its customers that they will remove those chemicals from their other products like as Clean & Clear and Neutrogena (Zummo, 2013)
In order to proceed with a good marketing plan, the organisation shall take consumer's right into account. As being immoral in product sales and product purchase, it may cause bad attitude or situation. For example, if customer purchasing product which is illegal or against the law, obviously the organisation would not consider about customer's right for the sales. It would directly affect to the market itself and unethical behaviour will be spreading around. Ethical issues ensure that the consumer must receive its basic right of getting quality services and goods to provide fair trade. In the above example of (Jhonson and jhonson’s) we can clearly observe that if an organization at a peak position in a business can apologise to its consumers and recall its products, to ensure business ethics. This incident and many other like one of those shows us the power and rights of consumers. Consumer ethics plays a great role in a marketing plan of any organization. It directly as well as indirectly effects market planning.
In unit 9 marketing planning assignment conclusion it can be said that Many organizations often provides false insurance claims, warranty deceptions etc. These kinds of false promises often led to weaken consumer and seller’s bond. Talking about the mentioned process, the company needs to bear additive costs of the newly developed product. Thus, Enterprise had more attention over the growth of market development, product development and diversification. Therefore Enterprise became the most successful car rental service using market planning strategies irrespective of the downfall of economies
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