Marketing Management of Destiny Electronics Supply - Case Study Example

Marketing Management of Destiny Electronics Supply By {Student’s name} Code+ course name Professor’s name University name City, State Date Introduction Marketing in a broader sense is an organizational role and set of processes for creating, delivering and communicating value to clients and relationship management with customers that are of great value to the organization or business. According to Kotler (2004), marketing is the process of discovering and translating consumer needs and wants into product and service terms, and creating demand for these products and services (Kotler 2004). Marketing also is the process of communicating the importance of a product or service to clients, with the intention of selling that product or service. In marketing, the customer is considered as the king. Therefore, his demands and satisfaction are set as first priority in the marketing strategies. This study focuses on the marketing management of Destiny Electronic supply Ltd. The study will look at the business strategic planning for Destiny Electronics Supply Ltd. The study will also explore marketing environment, marketing research, market segmentation, consumer behaviour, product branding and packaging concepts, product development and product positioning, pricing and finally, Destiny Electronics’ distribution and sales. Destiny Electronics Supply Ltd is a medium enterprise in Australia that began in 1992. The enterprise supplies a range of Electronic materials throughout Australia. The products and services that Destiny Electronics supply are phone accessories, computer hard wares, electrical materials, and electrical gadgets. The services offered are software installations and electrical fixing. They purchase this electronic product from their major suppliers including Samsung, Techno, LG and other major electronics companies. Some of their electronic products are imported from China. Destiny Electronics Supply Ltd understands that it is more difficult to win the customers back as compared to putting in strategies that will ensure that they do not leave. As such, the firm offers high quality products that exceed clients’ expectations. Destiny Electronics Supply Ltd Market Strategic Planning The plan is a way of doing something or conducting business. Marketing plans are activities that facilitate the attainment of marketing goals (Boone & Kurtz, 2011). In a small- undiversified organization, this process is usually informal, but in larger and more complex companies, the process is often systematized. In the face of intense global competition, small and medium sized enterprises use marketing strategic planning in order to survive (Rumanti & Syauta 2013). However, there is no magic in business to thrive apart from good marketing strategies (McDonald 1991). Strategic marketing demands for a careful and critical analysis of the company’s strengths and opportunities as well as the business environment. Destiny Electronic Supply Ltd aims at becoming the market leader in the electronics industry throughout Australia and beyond. In so doing, Destiny electronics supply employs various marketing strategic plans to ensure that their objectives are achieved. These objectives are enclosed in their mission statement, vision statement and objectives. The mission of destiny electronics is ‘to provide the Best Electronic products for the modern society.’ A strong mission statement plays a crucial role of providing an organization with a clear direction. In addition, it provides a means of evaluating and screening the marketing plan. It also provides an incentive to implement a marketing plan (Barringer 2008). The vision of Destiny Electronics Supply Ltd is to be the best supplier of electronic products that are modern and of high quality. Destiny Electronics Supply Ltd Objectives and Goal The objectives of Destiny electronics Supply Ltd, is to provide a wide range of electronics to customers. These objectives are aimed at making the company the best distributor of electronic materials. These business objectives by Destiny Electronics Supply Ltd are in harmony with the mission statement. Since Destiny Electronics Supply Ltd is pursuing the accomplishment of these objectives the marketing strategy is well established in reaching customers and satisfying their needs. The marketing plan and strategies are geared towards maximizing sales of the offered products by Destiny electronics supply Ltd. Destiny Electronics has put much effort to the target market in order to meet the target market needs and preferences. To achieve this, it established a marketing mix that puts into consideration the needs, desires and customer satisfaction. The target market is broad, and therefore, segmentation strategy was established in the company. Thus, the company uses different marketing strategies to meet the demands and needs of each segment. Marketing Environment Marketing Environment refers to both the external and internal affects a company. These forces are outside and within the marketing department, which affect market management’s capability to build up and maintain successful relationships with target customers (Kotler 2004). The internal marketing environment consists of human, financial, natural resources, raw materials, information, and creation of outputs: goods, services and ideas. The external forces, on the other hand, are the uncontrollable factors that affect the business. These factors include the following: Demographic Factors: Demography is the study of the human population in accordance to the size, density, distribution and other related statistics (Barringer 2008). An increase in the Australian population will result in an increase of Destiny Electronics Supply Ltd sales volume. Economic Environment: Destiny electronics is affected by a variety of economic forces which cannot be controlled by the company. These economic forces can be divided into demand force and competitive forces (Vitullo-Martin 2002). Social and cultural environment: In the era of digitization, Australian population has adopted the use of electronic materials in all areas of life. For instance, Australian citizens use electronic gadgets in cooking, washing, and entertainment. Destiny Electronic Supplies Ltd has taken advantage of this move, and therefore, it supplies electronics that meet clients’ requirements. Political and Legal Environment: These factors affect the business in every sphere and almost every day. All business firms are directly affected to a greater or lesser extent by the government and its programs. Destiny electronics supply is not an exception to this; it is highly affected by government laws and regulations such as taxes and licenses. Technological Environment: Most businesses today are greatly affected by technological advancements. Destiny Electronics Supply Ltd is very careful as well as aggressive on the acquisition of modern technology in order to meet the ever changing clients’ needs. Since electronic materials are being invented and improved every day, Destiny Electronics Supply Ltd has taken advantage to ensure they supply the latest types of electronics. Marketing Research Marketing Research is the collection of information that is useful in the maximization of sales. Market research is also a constant process for collecting data on products (Proctor&Jamieson, 2004). Marketing research also plays a major role in finding out whether marketable practices regarding customizing, modifying products or tailoring services are accessible to meet customer needs and preferences. Marketing research is the connection of consumer, customer and the public to marketer through a medium known as information. This information helps to reveal the marketing opportunities available and threats or problems. This research also helps to improve and appraise marketing actions and to monitor marketing performance by the organization (Malhotra 2004). The major objective of marketing research is to understand the customer, the company and the competition by other related companies offering the same products (Bergmann 1997). On its part, Destiny Electronics Supply Ltd understands that information is power, and therefore, it has invested heavily in the marketing research. The information from this marketing research has been useful for the company in solving the various challenges that arise. A research carried out by Destiny Electronics Supply marketing department in 2013 revealed that customers are interested in sophisticated electronics that are original regardless of their price. Destiny Electronics Supply Ltd has taken cognizant of the need to meet customer expectations. A number of forces have been in the forefront of driving the innovation revolution. These include, among others, developments in the electronics market, intense competition in the marketplace, and governmental activities in the macroeconomic sector. These forces have forced Destiny Electronics Supply Ltd to take a serious look at the innovation imperative, namely: adapt or perish. Researching customer needs is the first and most important step in becoming an innovation-driven business. It is only by asking the customer what he needs that a company can create market-responsive products. By researching customer needs, innovation enables Destiny Electronics Supply Ltd to provide the customers’ immediate needs. Adding to this and perhaps more importantly, customer research discovers the latent consumer needs and sets in motion the process of producing appropriate products. Destiny Electronics Supply Ltd has achieved success by being constantly in tune with the customer. Market Segmentation In order to succeed, every business must answer the question ‘Who are our customers and how will we appeal to them? The businesses should be able to segment the customers according to the nature of their work (Kotler 2004). Most customers are retailers who purchase products for sale and other customers are the end users of the products. The product or service cannot be offered at the same price to both the retailer and the end user. The main advantage of market segmentation is that, it enables the marketer to have better control over the market. Fleisher & Bensoussan (2007) argued that, segmentation gives the marketer the opportunity of being able to satisfy the varying needs of buyers. The secondary role of segmentation is to make it possible for the seller to know the response and reaction in each segment. With segmentation, it is possible to compare the performance of two or more segments, and in turn, identify the segment that requires more attention than the other (Kotler 2004). Most retailers purchase products from Destiny Electronics Supply Ltd in large quantities. Individuals and organizations are also major customers of Destiny electronics Supply Ltd. However, retailers form the largest portion of Destiny Electronics’ consumers because they purchase in large quantities and sell them in the local markets. As a result, the company provides them with discounts according to the quantity purchased. Institutions throughout Australia also form a large segment of the market. This category, unlike the first segment purchase in bulk, but demand more service than the retailers. These services include electronic installation and demonstration. Therefore, the service department is concentrated on this market segment. Direct Consumers are end users of the Destiny Electronics Supply Ltd products. They purchase in small quantities compared to the above two segments. Basing on the above segmentation, the target market for Destiny Electronics Supply Ltd is based on the three categories. Satisfying all the three segments is paramount to the success of the company. The most sensitive market segment is the retailers because they can choose to buy from other electronic companies in Australia. On its part, Destiny Electronics Supply Ltd must gear all its efforts towards delighting them. Consumer Behaviour Consumers are the people or parties that use the company’s products. Each consumer has unique and diverse needs and wants, tastes and preference. Sahney (2006), in his studies, defines consumer behaviour as the interplay of forces that take place during a consumption process. He explains further that interactions take place between three fundamentals, that is, knowledge, effect and behaviour (Sahney 2006). The behaviour of consumers displays the reason why a consumer purchases a product and their ultimate decision on the buying process (Lescher 1995). There are several internal and external factors that affect consumer behaviours of Destiny Electronic Supply Ltd. Most of the Destiny Electronics Supply buyers are influenced by the media such as television. Destiny Electronic Supply Ltd uses both the print and electronic media to position itself in the electronic market. Market positioning is imperative for a company in creating a niche in the electronics market in Australia (Solomon et. al, 2006). The young transitional presents the greatest opportunity for the electronic market growth due to their explorative nature, influence and minimal opposition to new products in the market. Notably, this group has a strong qualitative and quantitative association with the electronic products, and winning their confidence will create a huge market base due to their power of influence. To tap this market segment, Destiny Electronics Supply Ltd uses social networks to reach a wider audience (Alozie, 2012). In addition, most consumers purchase products based on their level of income (Gitman, & McDaniel, 2008). On its part, Destiny Electronics Supply Ltd provides a variety of products with different quality and prices in order to satisfy the consumers needs based on their purchasing power. Lastly, many customers of electronic products prefer the latest versions of products such as mobile phones, laptops, desktops, computers and other electronic gadgets. Destiny Electronics Supply Ltd has institutionalized an innovation culture. The company has realized the challenges and risks existing in the market place. To meet these and successfully operate, Destiny Electronics Supply Ltd has learned that it must be at the vanguard of innovation. Every passing day confirms the imperative of continuously innovating and thinking of new ideas, implementing them and seeing how customers receive them. Successful ideas are incorporated into the company’s business operations while those which do not work are modified or discarded altogether. Branding and Packaging Concepts Branding in the simple sense is the process by which a brand name or brand mark is selected for a product. Product branding helps to differentiate product in the market (Milton Pressley University of New Orleans 2011). Branding helps the customer to identify the original products, latest versions and the quality. Branding of product is important in distinguishing between competing products in the market (Agariya et. al, 2012). Branding also helps to eliminate fake or duplicate products (Farrell, 2008). Destiny Electronics Supply Ltd has put much effort in branding their products. In so doing, the consumers are made aware of the products and its superiority over the other brands and products. To realize this goal, several factors have been put into consideration. These include images and name that is easy to associate with passion Destiny Electronics appeasing and attractive brands to prompt impulse buying of the products as well as constant promotions across the market to increase the clientele base. The company understands that buyers of electronic products are normally interested in the country that manufactured the product. If the electronic product is manufactured from China, it should be clearly branded. Most customers of electronic products also require detailed information on the features of the electronic product, and therefore, these features must be included in the branding. Packaging concept According to Botha, Bothma & Geldenhuys (2008), it is imperative for marketers to understand that customers will view the company’s product negatively if the design is not appropriate. Consumers judge an organization based on how it how designs its product. Customers are sensitive to the product’s packaging, and thus, Destiny Electronics Supply Ltd strives to create new packaging ideas. The role of packaging concept is to protect, promote and enhance the products’ quality. Among the strategies that the company adopts in order enhance its competitiveness include branding, quality and styling ( Agariya et. al, 2012). In the modern business world, branding concept has become an essential for promoting products. Recent research indicates that consumers prefer to purchase commodities from renowned companies (Francis, 2010). A trademark is a word, symbol or logo Destiny Electronics Supply Ltd use to identify its products in the market. This makes it easier for clients distinguish Destiny Electronics’ brands as they stand out from the rest (Ksenia 2013). 'Pricing strategy Pricing is the fee paid by the buyer for the goods and services he receives from the seller (Kotler 2004). The price paid by the buyer must enable the marketer to recover the cost of manufacture or purchase of the goods (Bridge, 1997). The objective of destiny electronics is to be the best seller of original products at a relatively low price without making losses. In this case, Destiny Electronics Supply Ltd determines price of its products based on such aspects as the costs of production, cost of distribution, custom duties, and targeted profit margins among others. In order to become a market leader in the Australian electronics industry Destiny Electronics Supply Ltd imports some of items from international markets where they can be sourced at lower cost while, at the same time, buys from the local manufacturers at lower costs. This plays a crucial role in setting prices which are not far below or too high from what the market is willing to pay. Destiny Electronics Supply Ltd also studies the prices at which the rival electronic firms are offering, and in turn, sets competitive prices. Distribution Palmer (2012), in his studies, defined distribution as the physical movement of products from the origin to destination. Therefore, distribution management involves shipping, warehousing, inventory, amortization among others. In the recent past, the concept of physical distribution has emerged as a distinct, identifiable function of management (Doole & Lowe, 2008). In terms of transport, Australia is one of the country’s that have good transport access across the globe. Therefore, Destiny Electronics Supply Ltd does not face major challenges in its operations in key Australian cities. Conclusion Today’s market has become extremely competitive, and businesses must be customer centered if they are to succeed (Bergh & Camesasca, 2001). This means winning customers from competitors and then retaining and growing them by delivering greater value. A business must identify their customers’ needs in order to satisfy them. Product success in the market is dependent on the marketing plan and strategy used. Marketing research helps the business in identifying consumer needs. Understanding the market well gives the business the opportunity to tackle competitors. A proper marketing strategy steers changes and development. The electronics market in Australia presents an ideal area for investment. In order to tap this market, Destiny Electronics Supply Ltd has established the following objectives to guide in the process; to be the market leader, to be a pacesetter in quality, and to main constant supply of the electronics. Thus, marketing management is important to the success of Destiny Electronics Supply Ltd. The marketing strategies ensure that the customers are satisfied with the products and the company maximizes the sales. Marketing segmentation helps the company to identify the target market and thus gear the strategies to satisfy the segment. Product branding, packaging, positioning and development have been used by the company to maximize sales. References Alozie, E. (2012). Advertising in Developing and Emerging Countries: The Economic, Political and Social Context: Farnham: Gower Publishing, Ltd. Arun Kumar Agariya, A. J. (2012). The Role of Packaging in Brand Communication. International Journal of Scientific & Engineering Research , 3, 1-3. 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