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(This discussion should include difference between strategic marketing and tactical marketing. Moreover, established models and definitions also be used in developing this discussion.)
Strategic Marketing: It is the identification of different sustainable competitive gain that a firm fix to operate service in the market as well as allotment of capital to execution those. It involves analysis of different models for external and internal environment and orients a plan for the market (Chernev, 2009).
Difference on Strategic and Tactical Marketing: Strategic marketing focus on the manipulation and announcement of the message that means it emphasize on what should say and whom to say. Moreover, the tactical marketing involves in implementing the message. Strategic marketing is content and contrary tactical marketing is execution of that content (Doyel, 2009). "Tactical Marketing” involves with the carrying out or implementation of the company‟s marketing plan, for example, producing lead, introducing media, generating marketing tools, and execution a follow-up system. Additionally, it is the process of disseminating the company message. On the other hand, "Strategic Marketing" must deal with the thought process from the analytical ability it comes out to show the way what we should do, how should we do it, and who should do what. Additionally, it says the content of marketing message. Strategic marketing set off with consideration of customers and the external environment as well as many other things, for example, emphasizing on the issue „‟why the company buys, what buys‟‟. If we want to know the answer of this question we need to go through the eyes of that company. Some companies go through the way of selling more before finding out the way of providing a solution to customer‟s need. Strategically, marketing programs and advertising go through the concentration of intended market forecast as well as make easy decision-making. This process involves lessening risk for captivating the after that step in the buying process.
By consideration what's significant to the company‟s target market, a strategy forwarded to acquire qualified forecast to identify and make further steps. After placing the strategy, the tactical execution just consists of testing and implementing strategic plan.
AC1.2 Explain the processes involved in the strategic marketing? Examples and illustrations from a real company should be given to show your understanding of the concept.
Involved Process in Strategic Marketing: A strategy for performing yearly wide-ranging re-examine of market and opportunity, therefore, make long-term tactical decision except the disruption of daily sales as well as marketing activity. Day by day decision subsequently shaped to the firm‟s whole tactical marketing goal. It's significant in favour of a strategic marketing planning process to seem at the corporation commencing the client‟s view point by enquiring question with the intention of having a lengthy horizon, for example: What requirements or trouble root clients to think buying from this farm over others? What enhancement and upgrading in the customer's private or commerce life is capable of improve by us? Which segments of market customer are paying attention to products or service of our company? Which customer motivation or value guide persons to make a decision to buy the desired products of a company? What modification or trend recently affects wide-ranging attention or magnetism to the desired company products?
Developing the Strategic Marketing Plan This process involved with following stage:
1. Segmenting the market
On the base of Geography On the base of Demography On the base of Psychograph
market segments as well as the buying procedure. Here the plan on product. It includes product profiling. Selling directly and indirectly. targeting market and targeting volume in desired currency Marketing Strategies: It implies the way of action by which the firm try to attain its objective. Group or accumulation marketing otherwise marketing to target people. opportunities and problem. What the company will do in terms of marketing on the other . distribution. technological influence. promotion. Developing a market segment and marketing strategy. AC 1. social and legal environment. Marketing Objectives: This is about the desire of the management to see the company position in future. Situational Analysis: It includes the answer of the current position of the company. and marketing strategy projection is necessary. In this stage. competition and comparison among products. Profiling the market segment Potential returns or profits Potential Market share Potential Profitability 3. price. Now strategic marketing plan can be introduced after discussing the issues like customer interest. factors that affect success. Strategic Marketing and Corporate Strategy: Strategic marketing involves the way of thought process which includes generating a way of conducting business process.3 The process of strategic marketing does not take place in a vacuum. Evaluate the links between strategic and corporate strategy by giving examples of some of these links. Market leader or extension for product line. Pattern of Behaviour 2. we have to know the characteristics of the market.
Chernev stated (2009) that strategic marketing planning is the process of documenting a proposed course of action pertaining to a particular offering. In the contrary. Current approach has determined and intended for company to become accustomed to and be hopeful of change in the commerce surroundings. a product line. company‟s goals. Siobhan (2007) stated that it is the also largest in the world in terms of international passenger numbers. and the decided upon course of action. Different company has different ways of addressing different segment of population. a flexible strategy. On the other hand. different company focuses different market segment and strategy for survival. enchanting the surroundings in which it functions.1 Assess the value of models used in strategic marketing planning? Make sure you provide your own judgements on these models. For example. AC 2. there is different airways company in UK. Doyle and stern (2006) said that to maintain success. its place in the market. and/or entire company. implementation and controls. i. overview of the current situation. For British Airways there is a strategy of not compromising about the service and quality.e. tactics. So. implementation and control. as well as competition faced into deliberation. It is the largest low-cost carrier and targeting minimum cost of travel compromising with the service quality. set goal. strategy. There are several models has been introduced to analyze the strategic marketing planning. the strategic marketing involves the technical and disseminating way or plan for the future step related to marketing section or department. 2003). not only mainly analyzed by a SWOT analysis but also corporate strategy used in a broader area of business cover all the strategic points of different segments and departments. He also said that it documents the identified goal. tactics. organization must have strategies to reposition themselves in the market. The growth of a corporate strategy engage setting up the reason and capacity of the organization performance and the character of the commerce it is in. Those are as follows: .hand. corporate Strategy is the way a company capture by means of the purpose of attaining commerce achievement in the extended phrase (Brassington. Ryanair has the control over price. The strategic plan for these two companies is very different to survive.
legal and ecological aspects that have to face by the company. It has been used to assess the internal environment strength. social. economic. technological. weakness. SWOT Analysis: It describes the strength. Porter’s Five Forces Model: This model generally designed to depict the entire scenario of suppliers‟ power of bargaining.PESTLE analysis SWOT analysis Porter‟s Five Forces Mckinsey‟s 7 S Model and Marketing Audit PESTLE Analysis: It has been used to describe the external factors of the company from all the aspects of political. opportunities and threats that are in the field of the business for the company. the availability of threat of alternative. The company generally has no control over its external environment. pressure of new entries and competition among the active companies in the manufacturing. During the plan all these aspects are analyzed and decision made to overcome the weakness and central attention to the continuity of the business and try to avoid different problems in these aspects. . Generally. buyers bargaining power. the company has the control over its internal factors.
day to day tactics decisions have to be made. It assesses all facts including structure. assessment of marketing activity of any company with an outlook to determine dilemma or crisis locale and prospect as well as recommendation of an action plan to improve the company‟s marketing performance. Discuss the links between strategic positioning and marketing tactics? (Provide examples of how tactics are related to strategic positioning decision. style. Marketing Audit: This is widespread. system.) Marketing Positioning: . strategy. methodical.Mckinsey’s 7S Model: The 7S model of Mckinsey provides the strength of the internal culture of the organization.2 When strategic plans are put onto operation (implemented). staff and skills. AC2. self-regulating as well as periodic. shared values.
an end.Positioning approach. product. Marketing Tactics: A process or set of exercises occupied in achieving an aim. Process and Physical Evidence . Marketing tactics includes the process of 7 P. or a goal. in marketing. marketing tactics related to action engaged by a firm or individual which are intended to grounds individuals would like to buy their commodities. Pricing. Promotion. product or services. to denote the procedure through which marketers strive to generate a picture or uniqueness to their target market for its brand. In general. Product. Place. service or organization. People. It engages psychological aspects to gear up customers thinking to buy their commodities or products or service.
Product: The product that has been offered by company for customers and required modification to meet the need of the customers that are considered during tactics of marketing. newspaper advertising. Here distribution channel is important to disseminate product.3 Discuss the place that relationship marketing has in a strategic marketing plan? Analyze the merits of using this marketing techniques in this strategy? Relationship Marketing: . direct mailing. People: This point includes ensuring the number of employees having proper training and development. it is important determinant. free sampling etc way of advertising can be used. AC 2. Place: It determines where and the product will be sold. get one by one free. Promotion: It supplies the way of reaching to the customers through different advertising system. To determine a reasonable price considering all the costs and target market. Physical evidence: The manifestation of company workforce as well as location is capable of affecting how clients distinguish this business. Processes: The correct procedures motivate ensuring that the company offering a reliable service with the intention of suit to customers and consumers. Pricing: Price is really a very essential in tactic marketing. What the products offering to the customers and what percentage change needs to meet the customer needs. Price is generally set to sell more unit products for generating profit. TV advertising. or charging a first-rate charge designed for an excellence product as well as service. Pricing aims to contest the opposition.
innovative and fresh manufactured goods and service. (Kotler. Serving the existing product in a new way or better way from the opponent is the second way. national and international settings. There are a number of traditions to expose likely artefact or service development. AC 3. statistical data. Therefore.) Growth Opportunities: Company must assess the growth opportunities against their opponents.e. particularly in market whatever it is in local. Loyal customer recommends other people to the company. 2009) Opportunities for Raynair: . rather than a leading focal point on sale transactions. SWOT analysis especially the opportunities are calculated in the assessment of growth opportunities. Strategic marketing has the objective to increase sales and maximize profit as much as possible and doing so is related to direct relationship to customers. Loyal customers are more sensitive to price and quality. It builds relationship and maintaining and developing long term relationship between company and customers. This necessitates modest marketing aptitude because of the obvious need. Relationship Marketing is different as of other types of marketing where it has been recognized the long term value of patron relations as well as expand statement further than invasive marketing and sales promotional messages. The third and final option generally guide to a very original. economic data. Therefore. The initial way is to provide something that is in short in supply. Three sources can be identified for market opportunities.It is defined as one appearance of marketing oriented as of straight response marketing campaign which highlights client maintenance as well as contentment. data from the organization and data from the markets. It determines the area of buyer need and concentration that can make the company to lead to the high satisfaction and profitably. the rule of relation marketing in the strategic marketing plan includes the following.1 Use appropriate marketing techniques to ascertain growth opportunities in a market. In this case. relationship marketing has a link to the strategic marketing as there is a need of providing emphasizes on the relationship marketing during doing plan or strategy formulation. You need to provide real time data from the company to support your research. It creates loyalty customer. (i. Opportunities are those aspects that can be utilized for the better business profit.
so it is easy to follow up. The company offering 94% online booking facility. AC 3.The company offer a numerous point-to-point provision which permit company to stay away from cost of services for involving passenger. popularly called Ansoff‟s matrix. Its low fair policy will create a better opportunity for the company and business. Sometimes it offers free flights to attract the passengers. Growth in the income level of the people. In non-European markets it plans how could expand of its operations in the near future. This matrix shows only four available options. Market Penetration Product Development Market Development and Diversification . The United States and the “open sky” agreement in Europe might be a great starting place to grow up their routes as well as passengers inwards. expenses of baggage reassign and outlay of transit passenger assistance. Strategic Marketing Option: The marketing strategy can be determined by one of the strategy from the product market extension grid. It is most popular method and employed by the business firm to grow their business. New routes in the EU market are open for Ryanair to launch. Growing population and mix up of EU nationals for business purpose and globalization causes. This strategy formulated depending on the two variables of market and products.2 Plan appropriate marketing strategies options and apply them to organizational context which you are using.
Market Penetration: This option involves selling as much as possible in the existing market. The low-cost maintenance provides cutting different facilities inside the flight . Most of all it will find difficulty to maintain low-cost policy of business. Market Development: This option involves in expanding the product to the new market that means the current product selling to the new customer of a new area. The virgin group has a very good success in their current diversification efforts. new market segment and new users. New geographical area. If the organization wants to penetrate market it should change slightly the current policy. Diversification: This strategy involves in developing new product for new market. This provides a turn for the existent business. Product Development: This approach requires developing the present product in terms of quality and quantity. promotion system and others. and customers. This may be achieved by heavily advertising and focusing on the sales promotion. Appropriate Option: The most appropriate option will be concentrate on the penetration of the market. This may follow adding new feature to the current product.
Ancillary Services: Ryanair propose a diversity of ancillary. Low Operating Costs: Ryanair tries to maintain as much as low cost in their operation. reservation service to live or stay publicity promotion and marketing. Four expanse areas are managed to control and maintain low cost in each of the following section. Management believes that providing these services through the internet allows Ryanair . accommodation services and travel insurance through both its website and its traditional telephone reservation offices. Disability Rights Commission (2004) criticized Ryanair as it refused to provide wheelchairs for disabled passengers. Key fundamentals on which Ryanair strategy based on: Low fares: The most important strategy for Ryanair is to provide low fare in the journey. profit-generating services together with on the trip in airbus for different commodities. 2007). If Ryanair tries to provide as much as many facilities the cost will increase.) Strategic Marketing Objectives: Ryanair‟s objective is to set up itself as Europe‟s foremost low-fares scheduled traveller airline. Ryanair distributes car rentals. Ryanair aims to offer low fares that generate increased passenger traffic (Mayer. Despite of facing some additional expenses. and (iv) airport right of entry and management expenses. beverage and food sales. If the price increases the customer have alternative for the better service. Choice of routes: It use secondary airport for its business. Online Service: It has avoided the medium for booking to minimize the cost associated with travel agent. AC 3. it should concentrate on the current situation as it is still in the growth stage.3 Create appropriate strategic marketing objectives for your selected market of the organization? (The objectives should logically follow from the research undertaken on the organization and the selected market. (i) aircraft apparatus expenses. For example. rent a car facility and rail and bus tickets. (iii) client provision expenses. In this case. travel insurance. Then.and minimizing different services. To survive in the market they need to penetrate on current situation. it won‟t remain in the low-cost position and for that reason they have to count loss or loss of more profit. (ii) employees payment.
1 Changes in external environment are inevitable and so are the resulting impact on an organization’s marketing strategy.1% (2002: 44%) and now accounts for 11. PESTLE stands for: P= Political factors E= Economic factors S= Socio-cultural factors T= Technological factors L= Legal factors E= Ecological factors Political Factors: . excluding charters. PESTLE Analysis: This external process analyze follow the following aspects.to reduce costs on a per unit basis. greater than before by 68. Describe the impact of changes.4% in 2002. on its marketing strategy? Change in External Environment: It has been done on the basis of PESTLE Analysis. Objective and Aim: One of the aims for Ryanair is to provide maximum amount of routes with low fare in the European region.7% of total revenues compared to 9. identified in the external environment of your organization. while at the same time increase sales. Ancillary revenues. Increase the Frequency of Existing Routes Open New Routes in Europe Develop Its Smaller Continental Operating Bases Expand into Central/Eastern Europe Expand into North Africa Aggressively seek to take market share from the Charter Market Customer Service Overhaul Continue to find ways of reducing costs Ryanair 100% online AC 4.
these problems are not going to continue forever. number. AC 4. Gross Domestic Product and household disposable income has risen that are favoured situation for the Ryanair. privatization policies. environmental legislations. changing in consumer taste and preference and demographic changes are the real threats for the Ryanair. (Kotler. European directives and governmental stability are the political issues. and content of bags allowed through security led to significant delays at UK airports and a substantial number of flight cancellations. Environmental Issues: Different environmental campaign groups creating pressure to lessen greenhouse gases. 2008).This SWOT analysis can be applied on Ryanair Airlines which given bellow: . In this case these issues are not out favour of Ryanair. Legal Issues: Different laws provided by government also restricted the sector due to terrorism-related alerts. Economic Issues: Inflation and unemployment level remained low. Restriction related to the size. Socio-cultural Issues: Changing life style. health and safety regulation. However.Taxation policy.2 Conduct an internal analysis of to identify current strengths and weakness in their marketing strategy used by the organization of your choice? SWOT Analysis: SWOT analysis provides the internal scenario especially strength and weakness and partially the opportunity and threats from others are included here which has been faced by a company.
flight number and passengers take wing all over the world as well.2003) A superior brand name is extremely significant for the firm and business. . secondary of Ryanair airports may become less attractive. Ryanair also praised because of its management system that providing commitment for low fare. Irish owned Ryanair is the foremost operative airline in the UK market among all the leading foreign owned airlines. Ryanair contains greater seat occupancy in lowest fares. values attitude. (Brassington. It is the leading low cost transporter as well as does all the flight from the UK. Servicing system is poor as people skills. it known as weakness. Weakness: Weakness referred to interior rudiments that might hinder with the company‟s capability to attain its objective compared to opponent. Sometimes in fare value its ticket price is higher than previous price which extremely sensitive. Passenger is able to reserve over the internet as well as the opportunity for getting answers of all questions. Its growth possibility is restricted in Niche Market. Ryanair is supposed as conceited as well as the smallest amount occurrences obtain much press coverage. management ability to handle the business in terms of any unwanted and desired situation. fee. In terms of market growth position. The shortage of company ability because of strategy or whatever the reason is.Strengths: Strength is the company‟s internal capability.2009) Ryanair is disapproving of regarding to trade union policy.(Kotler. Lying face down to press. It is very successful in this business in terms of profit. It possesses four year energetic fleet of Boeing 737-800s. and inadequate customer services and disingenuous publicity and promotion system. Ryanair is very suited and the fit documented organization because of its good quality services. It deals strong bargaining power in airport.
It is possible for the Ryanair to open up lots of new destinations in EU market. using and disposing of manufactured goods. In the EU. The problem uncovering process enquires customers for their suggestion. There are a number of ways to expose probable manufactured goods or service improvement. The United States and the European “open sky” agreement could be a great source to grow up their routes and passengers traffic inwards. This is generally. The 2nd way is applying an existing manufactured goods or service in a new-fangled or advanced way. Service is not near to standard as the employee skill is also poor. expenses of baggage transport and expenses of transit assistance for passenger. Ryanair is tremendously responsive to change in charges always try to increase in fair value. . This necessitates modest marketing aptitude because of obvious need. It can give 94% online booking facility. Three market opportunities can be identified. The perfect process has then to imagine an perfect version of the manufactured goods or service as well as the expenditure sequence method enquire consumers to diagram their stepladder in obtaining. Opportunities: A marketing opportunity is a part of purchaser necessitates as well as interest that a business has a high possibility to satisfy earning profit.(Kotler. Niche market. In non-European markets it plans how could expand of its operations in the near future. Possible expansion is restricted Sometimes it has a far distance to its flight then the desired distance that has been advertized. it is a vast occasion for Ryanair of low cost price strategy will enlarge movement of employment seekers diagonally borders as well as helpful to tourism sectors in economic growth promotion. Passengers can book own ticket over the online. The last system frequently direct to a very new product service. The initial step is to provide somewhat that is small in supply.2009) The company make available a frequent point-to-point service which allows avoiding cost of services for involving passengers. one kind of inconvenience.
. Such integration offers greater opportunity for people to tap into more and larger markets around the world.3 Identify key emerging themes that are affecting your organization (these could be local. and so increase both their incomes and their ability to enjoy all that the world economy has to offer. Threats: Threats related to such a state in which the company can earn small profits and it may reduce its sell volume. The company features highly noteworthy price as well as others pressure in an extremely aggressive environment. local and global perspectives in business. Substitute‟s transportation (highly speedy rail system for example” TGV” and sea transport) can hamper on this industry. or global)? Then apply your understanding and propose strategic marketing responses to these emerging themes? The company always affect by the national. 2009) Ryanair is to face in direct competition with other transport in south as well as middle European regions. for this reason it will be impossible to increase their routes. Fuel price will be differential in near future and decline air travel because of MiddleEast War. The interconnectedness of ﬁnancial markets is also expanding rapidly. Some EU states it will get not permission. Sometimes it offering free flights for attracting to the passengers. (Kotler. Local and National and Global Issues: National and regional economies around the world are becoming increasingly integrated with each other through trade in goods and services. national. and production chains. AC 4. transfer of technology.
removal of land mines. cost cutting effort like lessening cost for advertising and other subsidiary cost in the board. Global economic issues such as International trade laws. Despite significant competition effects between local neighbours. transnational corruption. These issues of any country must be considering before driven to the business to that country as the customers natures are needed to identify. To maintain the standard service and following the rules and regulation all these factors affect the business (Botten. conﬂict prevention. 2006). Human development issues are also related such as communicable diseases. Tax competition is identified by means of instrumental variables techniques. intellectual property rights etc are mostly effect the organization. In particular. reform of international ﬁnancial institutions. humanitarian emergencies. 1999). The national perspective that affects the company is the national legal issues that must be maintained in the business policy and strategy. 2007). international migration. Global governance International law for air transport system multilateral treaties. and reform of the United Nations system. food security. 2007). debt relief. terrorism. In this time there should be need of job cut. It may be one of the ways to coming in the news in media. Recession: Recession is another issue that affect the business. behaviour pattern of consumer. jurisdictions are found to have some leeway in using the tax rate as an instrument of their policy. also problematic for the company. and human rights also affects the international market. Peace and security Arms proliferation. Ryanair used to charge for the disable people to serve as an extra facility which was under criticism for denying human rights (Hoffman. it announced that it is using low carbon emission carriers which was untrue and it refuse to serve the disable people by not providing at least one seat in each air bus that was against the law. disarmament. For example. ﬁnancial stability. drug trafficking and other crime. where tax rates are strategic complements. Ryanair should keep their concentration on . genocide etc. large jurisdictions set higher tax rates in interjurisdictional competition.The local perspective that affects the company is that customer‟s choice. local society perspectives to the company. poverty and inequality. armed conﬂict. The company has a bad name for its misconduct in different advertising affects. hunger and malnutrition and refugee‟s factors affect. Different routes that are not profitable may be suspended or minimizing the number of flights for certain period of time (Siobhan. global compacts. channel of distribution in the local area and so on (Siobhan.
Global warming: Environment and Climate change issues such as deforestation. 2006). We should follow the different aspects that are really a very good point and must need to follow to set the strategy for the company. accommodation services and travel insurance through both its website and its traditional telephone reservation offices. The company should use the low emission carbon-di –oxide carriers in future to free themselves from criticism by environmental groups and make the people more reliable. Ryanair should not used to charge for the disable people to serve as an extra facility which was under criticism for denying human rights. Ryanair propose a diversity of ancillary. beverage and food sales.1% (2002: 44%) and now accounts for 11. Ryanair should introduce car service to support the customer as a part of new product development to support the customers to transport them in different parts of the city from the airport. The global perspective is related to emission of carbon-di-oxide. land degradation. natural resources loss of biodiversity. rent a car facility and rail and bus tickets. Different alternatives especially the fast train service are threat for their business. Human rights also affect the international market. excluding charters. Strategic Marketing Response to Emerging Themes: The strategy that has been taken to survive in the market should be following by creating a new market for this business that has been analyzed earlier.7% of total revenues compared to 9. Ryanair distributes car rentals.ancillary service to generate profit all the time not only in recession. greater than before by 68. depletion of ﬁsheries etc. For example. Different research or statistics can be used during the formulation of strategy on the issues especially on consumer behaviour. access to safe water. reservation service to live or stay publicity promotion and marketing. Ancillary revenues. Different environmental group are creating pressure to the airline industry to less emission green house gas. travel insurance. profit-generating services together with on the trip in airbus for different commodities.4% in 2002 (Hoffman. Management believes that providing these services through the internet allows Ryanair to reduce costs on a per unit basis. sustainable energy. For example: The company should not offer such issues that are against humanity. while at the same time increase sales. Conclusion: .
In conclusion it can be stated that the strategy depends on the situation and on the basis of that Ryanair should come from its negative way of attracting media. Despite of all the facts it is essential to look at the opponent‟s service and try to serve better and improve in their strategy for future continuity. In the period of recession its strategy to be stable in the business is also effective. .
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