Marketing Management 3rd Assignment Sample

Marketing Management Assignment Sample

EXECUTIVE SUMMARY

This project is summarising that every business organisation has to focuses to managing all marketing activities and functions so as to reach customers and recognise their needs and wants. Marketing managements aids in improving brand image and market position of the company. In addition, the report is based on Vodafone Malta, which is the second leading telecommunication industry; here the firm has captured approximately 20%. Marketing strategies of the company is focused on reducing costs and raising production level so as to achieve higher growth and success in external environment. Apart from this, in order to conduct a marketing audit managers can go towards SWOT, PESTLE and Porter's 5 forces model analysis. It would assistive in demonstrating all those aspects which can hinder firm's marketing position in an adverse manner in future. The assignment defines that effective implementation of marketing strategies require evaluation of marketing mix elements.

INTRODUCTION

Marketing plays a crucial role in growth and success of every business organization. It helps companies to gain high competitive advantage in a certain time period. Marketing is a set of institutions and procedure to create, transfer and communicate offerings which have value for buyers, partners and society. Therefore, it is essential for business organizations to create an efficient marketing strategy so as to get strong understanding of own business as well as market in that they operate. Along with this, marketing also fosters healthy competition in marketplace; its efforts get the word out on pricing of products (Peter and Donnelly, 2011). It is an impulsive concept because due to changes in customers needs and wants, business organisations also have to modify their products and services. These variations also put an impact in distribution and production. Effective marketing also liable for vitality and advancement of an economy as if customers get know about new products and services they will consume them. This contribution makes the economic condition of the country more stable and strong. The present report is based upon Vodafone, it is one of the leading mobile operator of Malta and a subsidiary firm of UK's multinational telecommunications provider Vodafone. Apart from this, the report will be describe marketing position of the company in Malta. A marketing audit will be conducted as it would helps for potential growth and success of the firm. Furthermore, in order to implement marketing strategy it is necessary for Vodafone Ltd., to defined various marketing mix actions so as to gain high competitive edge.

MAIN BODY

Marketing management – It is the process of planning and implementing the pricing, conception, promotion and conception of goods and services. It also involves creation and exchange different ideas which aims is to target groups and then satisfying their needs and wants in the best possible manner. Marketing management works a brand board of management; it is related with direction of meaningful activities through which firms can easily achieve their goals and objectives (Wilson and Gilligan, 2012). Every business organisation has three common marketing goals that it must achieve, such as: -

• Satisfying of buyers' needs and wants
• Raising sales volume
• Enhancement in organisational profitability.

Background statement of the company

In this competitive environment, there are various telecommunication companies are established. In which, Vodafone Malta is become largest mobile operator company over the nation in terms of number of customers. Basically, the corporate association provides full range of voice services and data and SMS facilities over 2G, 3G, 4G and 4G+ networks. Its headquarters is in Luqa and the main products of the company are – mobile phones and ancillary products. There are over 350 employees are currently working in Vodafone Ltd. and presently trades as a telecell limited in Malta. Here, the first mobile call was made by the company in 1990 whereas very first GSM call was made in 1997.

Apart from this, the main objective of the company to differentiate itself from competitors by supplying a leading network, global reach, level, leveraging the benefits at large and international brand (Leonidou and Leonidou, 2011). Vodafone has its own stores in 26 nations and partner networks in other 50 countries. At global level, the market capitalisation of the company is approximately is £52.5 billion. The refereed telecom industry adopts licenses and spectrum in order to use radio frequencies so as to effectively deliver mobile services to customers. The IT department of Vodafone suppliers customers' relationship capabilities, data centres, online resources, billing services. It provides distinct communication and networking services, including mobile, cloud, video content, and hosting, and Internet; the firm provides such facilities by its network of approximately 300,000 base station sites.

The vision statement of the company, is to become market leader in telecommunication industry over the globe. In order to accomplish its vision Vodafone focuses on delivering many advance services to its customers so as to attain and retain for long term period.

• On the other hand, Vodafone offices are connected mobile and service line communications which are formulated so as to fulfil customers' communication neds in an effective manner.
• Vodafone Live! relates with multimedia or communication solutions.
• Vodafone 3G services associated with 3G networks so as to provide fast data transferable services to customers, like downloading, instant messaging and exchanging messaging.
• Vodafone mobile applications and connect data cards provides secure access to business systems, i.e. corporate applications, emails, company intranet and internet for target and potential buyers.

On the other hand, Vodafone Ltd., is managed by two geographical areas – EMPA (Eastern Europe, Middle east, Africa and Asia, Pacific and Affiliates). In Europe, Vodafone's mobile subsidiaries located in Spain, Germany, UK whereas its joint venture is in Italy. Other subsidiaries are Albania, Ireland, Greece, Malta, Netherlands etc.

Malta is one of the primary source of company's growth, it generates 65% revenue for the whole economy. For market expansion, Vodafone is trying to enter into new emerging markets by highly contributing in market portfolio. Malta's government is also emphasised on Investments in telecom sectors has been maintained by several legal authorities. In late 2017 the company announced plans to invest €100 million over five years, partly in LTE and fibre infrastructure as also in upgrading capacity on submarine cables.

Vodafone Malta emphasis on mobile and enterprise market, its new feature will add broadband and cable TV facilities to the armoury. This move is a biggest challenge for current market incumbents; the company currently holds highest market share in Malta; it puts stronger in long term. when converged services are come into existence in UK, it would seem that the Maltese are far ahead of them. As per the Malta Communications Authority, in the fourth quarter of 2016, 78.7% of fixed broadband connections and 68.4% of postpaid fixed lines were sold in a bundle which was greatly beneficial for the country as it helps in improving economic condition of the country.

Corporate strategy of Vodafone for selling propositions: -

• Driven up overall operational performance by enhancing values of customers and cost reduction.
• Spread data services and high value consumers as priority for effective communication (Michaelidou, Siamagka and Christodoulides, 2011).
• Expanding new emerging markets
• Strengthening financial position – generating $5-6 billion as a free cash flow so as to support investment for upcoming growth.

Current financial position of Vodafone Malta shows the transaction of worth €208 million in respect of approvals from competition authorities. Present share holding position of Malta present 51% ownership in respect of newly merged company and Vodafone Europe contains the remaining share of 49%. this was the deal done in second half of 2017.

Additionally, Vodafone reports according to the International financial reporting standards (IFRS). Financial performance has been as follows: -

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Marketing audit of Vodafone Malta: -

In this over dynamic environment, it is essential for business associations to conduct a marketing audit so as to analyse current marketing situation and recent trends. It helps company to recognise needs and wants of customers and helps in accomplishment of high competitive edge. A marketing audit is a systematic, periodic and comprehensive evaluation of firm's marketing. It is created in order to measure marketing activities in context of marketing conditions; and it is used in future planning (Grönroos, 2011). Along with this, marketing audit captures internal and external circumstances that are being faced by the organisation and throughout a review a can be done of marketing strategies, processes, goals and systems. Therefore, marketing audit is a useful tools which use for getting touch with brand and products and can also re-focus on trading efforts. Vodafone uses this feature so as to align its goals and objectives with working activities.

While conducting a marketing audit, business organisations have to follow these stages which are stages as under: -

Overview of the company – There is already mentioned above that Vodafone Ltd., is one of the fastest growing telecommunication industry over the world. In Malta, it has been captured almost 40% market share and the overall economic contribution is 65%. Although, the main objective of Vodafone is to provide effective networking and communication facilities to customers.

Marketing goals and objectives – The mission statement of Vodafone Malta is to be communication leader by providing good network facilities to customers. Apart from this, the vision statement of the company is to lead industry in responding to public concerns like mobile phones and health by demonstrating leading edge practices and encouraging others to follow (Ling-Yee, 2011).

Target market segmentation -

Competitors analysis – More then 15 players in market

T-Mobile, Go, Orange itself capture 75% market share.

The list of major competitors of Vodafone Malta is stated as under: -

Outline a communication plan – At last, a communication plan has to be formulate which signifies how company will execute the marketing audit plan in business environment. In this relation, Vodafone Malta acquire different strategies and techniques that aids firm to measure the internal and external environmental factors which can affect firm's marketing position in future.  

There are different techniques of marketing audit, such as-

• SWOT analysis
• PESTLE analysis
• Porter's 5 forces model

With the assistance of such tools, business organisations can easily attain their goals and objectives in a certain time period. The brief description of these stated as under: -

SWOT analysis of Vodafone Malta: -

PESTLE analysis of Vodafone in Malta

PESTLE analysis is used for scanning external environment affecting Vodafone in Malta. These are out of control for company and must be consider are threats and opportunities. The same are explained below:

• Political Factor- it affect Vodafone by government policies changes in these factor affect the respective company. Government gives some industry specific laws related to telecommunication State members of EU now implemented the EU regulatory framework for the communication sector, it was adopted by them in 2002. the same regulatory framework aim is improving competition in communication market and market forces or factors don't guaranteed for improvement in functioning of single market but innovation and creation through government policies help in creating interest or attract customer to a particular communication brand (Navarro and et. al., 2011). New roaming rate, call charges, per message rate, data charges are should be attractive so that it help company in attracting customer. In February 2006, European commission proposed new EU roaming regulation in which Vodafone reduce it 70% charges which customer have to pay for calling abroad this proposal implemented on 30 June 2007. All these changes are made in company with the help of government approval for new regulations.
• Economic Factor- This factor shows that how Vodafone in Malta added value to economy. Common factor for measuring a nation's economy is gross domestic product (GDP) if there is higher GDP Malta income is high and people living in this can easily adopt latest updated technologies. Changes in economic factors like inflation rate, global economic issues (financial crisis) and recession has decreased amount of money available for customers in market this results in reduction in Vodafone's revenue . Since Vodafone has its operation all around the world and having significant amount of money flow in other currencies respective country domestic currency. It has major inflows in Euro (EUR), India (INR) and South Africa Rand (ZAR). More the Malta will develop Vodafone have higher chance to expand its business.
• Social Factor- It deals with external environment from social point of view also. Relevant social factor for Vodafone are: disposable income, population growth in rising market and urbanization. The amount customer spend on communication services are part of their disposable income. If the consumer have higher income growth than this bring opportunities for Vodafone to earn more revenue. Population growth also affect Vodafone in different manners because uses of mobile phone is increasing day by day every individual person want their personal phones. This help in raising subscription of SIM cards and mobile phones. SIM cards, services charges and phones becoming cheaper in developing as well as in developed country (Foxall, 2014). World population fastest expansion during 45 years was reported particularly in Africa, Latin America and parts of Asia. Urban area are increasing their population this is the cause of more and more use of communication channel. Developed are are the first where networks are made available. For come profit and development Vodafone has to cover some rural area so that their own company earn more revenue and increase their customers also. In some countries data services are available only for the urban area because of these things rural area are lacking behind. Their is large no. of people living in rural area if Vodafone increase their services and provide to these people also then it increase its network in large amount.
• Technological factor- improvement in existing technologies increase speed of Vodafone networks and performance of mobile phones increase constantly. Latest technologies help in transfer voice and data faster or with better quality. On the other hand, development of new technology help in economic growth, job creation and increase quality of products. Government budget appropriates or outlays for research and development there is some amount allocated to R&D activities. Better technologies help in future and present development of Vodafone at large scale.
• Legal factors – Vodafone has maintained some legal boundaries for themselves and employees working with the company. Malta have legal factor in the same company are customer law, discrimination law, copyright law, health and safety law, employment law, fraud law. Legal factors are not in the hand of the respective given company these laws are given by government only they have control on these rules and regulations (Miquel-Romero, Caplliure-Giner and Adame-Sánchez, 2014).
• Environmental factors – Working condition of the company should be good so that they can easily make people part of their Vodafone family. It is a company with highly dynamic nature. External and internal factors play a vital role in organisation success. With the rise of globalisation in respective given company people become more ethical and ethic oriented. Customer always want from their brand to work for betterment of society as whole.

Porter's 5 forces model: -

Another technique of marketing audit is Porter's 5 forces model which is mostly used by firms for industry analysis. It derives five aspects which are stated as under: -

(Source: MARKETING THEORIES - EXPLAINING PORTERS FIVE FORCES, 2018)

• Buyers power – Customers are the prime factor that are liable for recent developments in mobile service industry. In emerging markets, there is enlargement of mobile subscribers in developing economics like Malta. In 2011 to 2015, annual rates of mobile users has been increased by 25% to 35%. As if the number is rapidly increasing then they put huge impact on sales and profitability of Vodafone.
• Threats of new entrants – Due to globalisation, there are entered different new rivals in telecommunication industry (Chernev, 2014). But in Malta, telecommunication industry is highly regulated and preserved by barriers; it is essentials for operators to pay high initial fixed costs. At the same time, retailers are also coming through taking the concept of virtual , investing on their dispersion channels and competitory on commodity services
• Suppliers power – The concept of suppliers can be defined as those providers who delivers mobile devices and network infrastructure, software as well as some other digital services to people. Due to the global presence, Vodafone's suppliers has huge purchasing power that allows it to secure exclusive deals with phone producers. Thus, the company has to develop its own phones and reduces the depending on other markets so as to gain high competitive edge.
• Threats of substitutes – There is highly increasing the obscure scope of market limitations. It means several substitute of a product are easily available in market (Vargo and Lusch, 2011). For example- different telecom firms are providing internet calling services by VoLP like Skype which experiences enormous vitality.
• Rivalry – Malta's telecommunication market is highly regulated and saturated, it is defined by higher level of competition. Whereas, emerging markets are also more favourable for Vodafone, T-Mobile, Airtel, Aircel etc. as these are the competitors of Vodafone in telecommunication industry of Malta.

Marketing mix of Vodafone: -

In order to gain high competitive advantage and fulfil the bridge between present marketing strategies and external environment of the company, it is essential for business entities to conduct a marketing mix. Its focuses on putting right product at right place so as to reach target customers in an effective manner. Below describe the marketing mix of Vodafone: -

(Source: Designing an effective marketing mix, 2018)

• PRODUCT – Vodafone offers a variety of products and services including data, messaging, voice and fixed line solutions. Its goal is fulfil the communication needs of buyers. In addition, handsets are use for voice services and text messaging (Marshall and LaMotte, 2011). For catering buyers' needs Vodafone provides vast amount of tariffs which targets different customer segmentations. The major products of the company are – Smartphones, handsets, internet services, voice and messaging facilities, internet services and value added services. In 2013, Vodafone has a total 50 million subscribers in Malta; this means the firm has now its own business of 55%. In this modern era, the need of sophisticated handsets are increasing, so buyers wants best quality of products and that is what Vodafone is continuously doing.
• PRICE – Vodafone is popular among customers as it provides high quality data and network services to customers in comparison of other competitors. The company adopts competitive pricing strategy, in which there is close competition between pricing rates of its substitutes (Lusch and Webster Jr, 2011). The firm also offers reward points for some specific amount of money which is spend on buying airtime vouchers or data bundles.
• PLACE - Vodafone is the second largest mobile operator over the world after Airtel in terms of number of subscribers. In order to improve its market position, the firm bough Melita before some years. The marketing strategy of the company is to customer oriented and lead by rendering telecommunication services. Apart from this, the organisation is trying to upgrading its plans by 4G and 5G networks; the products and services are provided by the company are sold by customer care centres and shops. Vodafone also sells its products to some independent retailers and whole sellers. It helps in company to easily reach with large group of customers in a certain time period. Furthermore, the presence of and distribution of the company is wide spread in Malta. On the other hand, the telecommunication industry is also sells online to its products and services.
• PROMOTION – The business organisation uses local name recognitions in order to access and coping trust or faith of buyers. Mary Kom is the brand ambassador of Vodafone. Although, to promote its global appearance and improve the brand value the firm basically uses famous sports person like Michael Schumacher, David Beckham etc. Along with this, Vodafone Malta also uses different strategies and policies; it also conducts a market research in order to evaluate that whether products are able to satisfy buyers' needs or not. This telecom industry also promote itself on different social media channels and websites so as to reach large group of customers in a minimum time frame (Merrilees, Rundle-Thiele and Lye, 2011).
• PEOPLE – The management of the people in the market is an essential part . Management of people in Vodafone is a very peculiar assert of company which has lead to enhancement of management system . It improves organisational structure by having defined role to all the employees .Employees are more dedicated as growth level of workers are based on the performance hence the monitoring helps in giving right creditability to the right customer . The services related to customer orientation is also very effective of Vodafone which helps to attract more and more customer in all over MALTA.
• PHYSICAL EVIDENCE - The evidences are related to to physical assert of company . It has been observed that in all over MALTA company is eager to invest in making new stations and increasing new network towers which helps in strengthening the capability of the network. The physical presence will helps regulation of services and product in very easy, fast and cost effective way (Lindgreen and et. al., 2012). In telecom industry major drawback is delay of service weather network or customer service so increase in physical evidences will enhance the growth and productivity of the company
• PROCESS - It is related to delivery of services , it is a very essential part in this desired product reaches out to customer in quick time succession, this factor of service delivery plays a very important role. It is also very important to destructive service uniformly, like plans and services offered like calling discounting offers or the Christmas offers all should be offered equally (Hanna and Rowley, 2011). The process should be short which will consume less time and it is also important to monitor and regulate the service consumption overenthusiastically they have increased the transportation facilities for inventory and door to door service of customer solutions.

Therefore, Vodafone Malta improve its marketing mix actions like product, price, place, promotion, people, process, physical evidence and process so as to obtain high competitive edge. It helps firm to compete all external factors in an effective manner and attaining all goals and objectives.

CONCLUSION

As per this discussion, it is analysed that business organisations have to manage their marketing activities and functions; it results enhancement of number of customers towards organisation in a minimum time period. Basically, marketing management emphasis on physical and psychological aspects of marketing. Marketing managers of the company are liable for hindering timing, level and composition of buyers' demands. Along with this, a marketing audit can be done through internal and external environmental analysis, in order to determine the factors that will put a huge impact on market position of Vodafone. Marketing mix of the company entails seven elements, like product, price, place, promotion, process, physical evidence and people. It is essential for managers to cope all these elements so as to implement any business strategy and accomplishment of vision and mission statement.

References

Books and Journal

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Chernev, A., 2014.  Strategic marketing management. Cerebellum Press.

Foxall, G., 2014. Strategic Marketing Management (RLE Marketing). (Vol. 3). Routledge.

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Merrilees, B., Rundle-Thiele, S. and Lye, A., 2011. Marketing capabilities: Antecedents and implications for B2B SME performance.  Industrial Marketing Management. 40(3). pp.368-375.

Michaelidou, N., Siamagka, N. T. and Christodoulides, G., 2011. Usage, barriers and measurement of social media marketing: An exploratory investigation of small and medium B2B brands.  Industrial marketing management. 40(7). pp.1153-1159.

Miquel-Romero, M. J., Caplliure-Giner, E. M. and Adame-Sánchez, C., 2014. Relationship marketing management: Its importance in private label extension.  Journal of Business Research. 67(5). pp.667-672.

Navarro, A. and et. al., 2011. Integrated model of export activity: Analysis of heterogeneity in managers' orientations and perceptions on strategic marketing management in foreign markets. Journal of Marketing Theory and Practice. 19(2). pp.187-204.

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Online

Designing an effective marketing mix, 2018. [Online]. Available through: <https://www.mrgoodacre.com/designing-an-effective-marketing-mix.html>.

MARKETING THEORIES - EXPLAINING PORTERS FIVE FORCES, 2018. [Online]. Available through: <https://www.professionalacademy.com/blogs-and-advice/marketing-theories---explaining-porters-five-forces>.