MNGT 501
Marketing Management
Name
Course
Date
Table of contents
The type of market
Creating value for the consumers and the organization
Service quality
Operations Performance
Redesigning
2.4 Job Satisfaction
Marketing strategies
3.1 Packaging
3.2 Place
3.3 Pricing
3.4 Promotion
The type of market
The main objective of this report is to analyze potential markets and the formulize a strategic plan in relation to selected target markets and potential and existing competitors to come up with a comprehensive way of ensuring that we stay in business and make targeted profits. The analysis will majorly give special attention to the firm’s strengths, opportunities and threats. The various repercussions of using each of them are also looked at. Combining internal and external analysis provides the company with a general few of testing market opportunities and therefore enables the firm to accurately compare the benefits of each opportunity. It is always important to look at initial marketing strategy as a way of positioning the company to conquer competition and improving your products and service. I would choose consumer market.
Creating value for the consumers and the organization
2.1 Service quality
The issue of service quality is paramount to profitability in food and beverage. Evans and Lindsay (2007) asserted that managers should prioritize quality so as to enhance customer satisfaction. Some of the approaches which managers can adopt in managing service quality include transcendent approach, whereby quality is seen as synonymous with excellence. The manufacturing based approach is also essential in enhancing profitability since the business will focus on delivering services free of error. User based and product based approach is also essential in ensuring right services which match customer specifications are produced. David Garvin (1984) also indicated the effectiveness of value based approach in food and beverage business.
2.2 Operations Performance
Managers should be keen in managing and improving operations performance and efficiency. Operations performance improvement will comprise either the entire business or individuals. Operations managers should be efficient in monitoring changes related to key inputs and outputs as well as achievements of production costs. It is also essential that adequate monitoring of change initiatives to be undertaken so as to ensure efficiency (Lockwood et al 2012).
In the event when managers have initiated changes in operations, monitoring should be administered so as to guarantee efficiency. Special attention should be taken in examining the performance of machines, employees, methods and units in the business group. This will help in highlighting the areas which need improvement. There is need for managers to establish the basis for investigating and launching improvements (Ojugo 2009). This is essential in the service business since it helps in boosting service quality and creating good customer perception on waiting time.
In seeking improvement on operations management, the generic operations performance measures should be considered. Composite performance measures like customer satisfaction should be give due consideration. Managers should put in mind cost of human resources, number of customers, units of human resources, cost of other resources, and units of other resources so as to improve efficiency (Dittmer and Keefe 2008).
There is a conflict in service industry related to productivity and quality. The cutting of costs so as to raise productivity may lead to overall reduction in quality. Managers should be aware that increase in productivity may not necessarily lead to high profitability. There is need to focus on the economic feasibility of operations performance both in the short-term and sustainability in the future (Mok et al 2013). Increase in quality has direct impact on business productivity and profitability. In the food and beverage business, managers should seek the following issues so as to guarantee quality, productivity and profitability.
Minimal waste from high quality raw materials
Minimal rejection of items from suppliers
Minimal complaints from customers about meal and fewer returns to kitchens
Improved image and service desirability
By considering the above issues, managers in food and beverage businesses are able to guarantee high service quality and productivity.
2.3 Redesigning
Redesigning of the entire business and its operations is essential for boosting service quality, wait time, and customer satisfaction. Heizer and Render (2011) depicted that managers should be efficient in adjusting and redesigning the business so as to enhance productivity. Items which add no value should be eliminated while also reducing variability in production times. Operations managers should also seek to re-evaluate ingredients, machines, equipments, and customers so as to reduce costs and time. Redesigning is essential for managing capacity and supply within the restaurant. By focusing on the issue of redesigning, managers are in a position to check and improve on service quality while creating a better perception on wait time (Heizer and Render 2011).
Heizer and Render (2011), argued that good forecasting should be undertaken so as to ensure a good match between actual demand and available capacity. Efficiency in operations will be attained when demand equals supply. High demand will mean customers queuing thus leading to waiting and turning away. Service quality will also be compromised thus leading to dissatisfaction and low productivity. High capacity or excess supply in comparison with demand leads to inefficiency through wastage of resources. It is essential for managers to strike a balance between business capacity, supply, and demand so as to ensure operational efficiency. Seasonal trends should also be put into consideration in demand forecasting so as to facilitate better capacity planning and control.
Heizer and Render (2011) argued that managers should be efficient in evaluating all issues related to productivity. Productivity is the main indicator of operational efficiency and performance and gives a reflection of what is produced against what is required. In the food and beverage business, managers are expected to assess the gains of productivity so as gain cost and quality advantages. In order to ensure service quality and efficiency in food and beverage business, the issues of labor, capital, and other resources should be put into consideration. Reduction of waiting time may lead to additional costs of labor and facilities. This will however be catered for the expected increase in productivity due to customer satisfaction, loyalty, and re-purchase.
Managers should be geared towards reduction of all waste so as develop more efficient, dependable, productive, low cost, and high quality products. For instance, the concept of Just-In-Time and capacity has been voted as essential in guaranteeing operational efficiency and low or no waste of time and resources. Just in Time systems will ensure zero or low inventory. In the food and beverage businesses, close and long term relationships with suppliers should be maintained so as to ensure efficiency and convenience. Another key approach for boosting operations performance is outsourcing some of the tasks so as to reduce costs, improve quality, exploit economies of scale, and gain expertise. Some of the areas to outsource include cleaning, personnel, maintenance, IT, and Payroll. By outsourcing these operational tasks, high efficiency will be attained thus enhancing service quality and customer satisfaction (Heizer and Render 2011).
2.4 Job Satisfaction
Attaining high job satisfaction is significant at the individual level because an employee who perceives his job as enjoyable, rewarding, and fulfilling will embody enthusiasm for his work and generally associate a measure of happiness over his professional responsibilities. In general, employees who are satisfied in their occupation are more productive and able to contribute more to their field than those who are unhappy or disgruntled at work. Furthermore, an employee who thrives in his career is more likely to experience satisfaction in other areas of life. Research has confirmed that the sense of achievement and success gained from satisfying work is directly connected to an individual’s general feeling of fulfillment in life (Marion & Ceengage, 2001). This research shows that the level of contentment a person experiences through his job will impact his overall well-being in life.
Job satisfaction, however, is different from the motivation to work. Job satisfaction is an individual’s emotional response to his current job conditions, and motivation functions as the driving force that pushes a person to pursue and satisfy his needs (Alshallah, 2004). An individual may be motivated to work and not feel satisfied with the job. In the work environment, motivation can be understood as boosting the morale of employees–encouraging them to willingly give their best in accomplishing assigned tasks (Itoje, 2011). Satisfaction with one’s work is determined by how he feels about his job—regardless of his motivation for working.
Marketing strategies
Packaging
The manager, in regard to the product, must be aware that be it a service or a product that he is endeavoring to sell, he must present the commodity in a way that attracts the targeted customer. This means that of great importance is the product appearance, its function, packaging, service and warranty among other aspects. The manager must also be aware the different customer needs in relation to the product. This is because two customers may be consuming the same product while in the real sense they are actually consuming different products based on the benefits they derive from the consumption (Shank 2001). The marketing manager must understand the life cycle of his product so that strategies like coming up with new products that are meant to be a response to the market needs are accomplished in a satisfactory manner. And when thinking about the product, the manager must present a product with distinct features to fit in a particular class of sports products. Knowing how the consumers use the product can help the marketing manager to capitalize more on the product features that can make the product stand out and attract customer loyalty. The sales manager will also count it as an achievement if the sales staff members are thoroughly knowledgeable regarding the product they are presenting for sale; a feat that will bring confidence in them.
3.2 Place
Another item in the mix is the place. It can also be described as the strategy that ensures distribution of the products to the marketplace. In regard to this strategy, the marketing manager or sales manger must identify the best channels of distribution that can be used to get the product to the prospect market or target customers. In this area, therefore, the marketing manager must choose wisely the channel members, and he must not forget to look at areas like market coverage, logistics as well as the levels of service. Wrong decisions in this marketing mix item might cause delays among other inconvenience that may work well against the objective of the manager. For instance if the channel of distribution is too long while the market is not as vast, this might also cause additional costs in addition to delaying delivery to the final consumer.
3.3 Pricing
Pricing still remains a challenging task in the sports market. The marketing manager must however ensure that while making the pricing decisions, he takes into account the profit margin of business and the pricing response other competitors are likely to elicit. Price plays a critical role in the marketing mix of the sports manager in that prices can be readily altered, the price is extremely visible and any changes effected on it can be communicated with ease hence impacting on the consumer perceptions. And where the market is characterized by an elastic demand, the marketing manager may use price as a very effective tool. Nevertheless, the marketing manager must be aware that price is ever close to the consumer’s mind and therefore any tinkering with it may be very harmful (Shank 2001).
3.4 Promotion
Promotion is one area that the modern manager has to consider and is very essential in providing a chance to dwell on the salient features of the product. In this area, decisions made include those with respect to communicating and selling to prospective consumers. Given that these costs can be large in as compared to the product price, the marketing manger must carry out a break-even analysis whenever he is faced with the task of making promotion decisions. Thus, one important thing for the sports manager in relation to the promotion decisions is that it is helpful for him to establish the value of a customer to facilitate determination of whether more customers are worth the cost of obtaining them.
Promotion must be made part of marketing strategy by first establishing the wants and needs of the customers so that when carrying out promotional events like advertising, media types, special events and public relations the main aim is actually purposing to satisfy an already identified want or need of the consumer (Shank 2001). In the modern business environment companies and business entities spend huge amounts of money on advertising and public relations as these have become very sensitive items and well recognized. Given the huge costs, the manager must establish whether he has a long-term or short-term objective. These huge expenses mostly benefit businesses that have long-term goals.
Lastly, the manager has the people decisions to make. These decisions that relate to customer service are pertinent to the success of the business. In relation to this, the marketing manager must strive to ensure that the sales personnel appear to customers in a presentable fashion. The attitude of the sales personnel as people who come in direct contact with the customer is very important since the first impression is that the customer will feel unwelcome in case faces are gloomy though there are customers who may identify with or like “that rude” atmosphere (Shank 2001).
In conclusion, the sports manager must consider every part of the marketing mix and put the satisfaction of the target customer on top of everything else and then clearly define the strategic vision and objectives of the marketing mix. The manager must however develop alternative tactics. This will facilitate achievement of the laid down objectives.
References
Alshallah S. (2004). Job satisfaction and motivation: How do we inspire employees. Radiol
Manage, 47-51.
Davis, MM. and Vollmann, TE. (1990) A framework for relating waiting time and customer
Satisfaction in a service operation, Journal of Services Marketing, Vol 4 (6), p. 61-9.
Dittmer, P. and Keefe, D. (2008) Principles of Food, Beverage, and Labor Cost Controls, New
York, Wiley & Sons Press.
Evans, JR. and Lindsay, WM. (2007) Managing for Quality and Performance, New York,
Cengage Press.
Heizer, J. and render, B. (2010) Operations Management 10th Edition, New York, Prentice Hall.
Lockwood, A. et al. (2012) Food and Beverage Management, New Jersey, Routledge.
Shank, M., D. (2001). “Sports Marketing: A Strategic Perspective” 2nd Edition, Prentice Hall.
Marion A. & Cengage G. (eds.). (2006). Job satisfaction. Encyclopedia of Business and Finance.
Retrieved from HYPERLINK “http://www.enotes.com/business-finance-encyclopedia/job-satisfaction” http://www.enotes.com/business-finance-encyclopedia/job-satisfaction.
Mok, C. et al. (2013) Service Quality Management in Hospitality Tourism and Leisure, New
York, Routledge.
Ojugo, C. (2009) Practical Food & Beverage Cost Control, New York, Cengage Press.
