Tough Mudder Melbourne Event - Marketing Mix - Research Paper Example

Assignment title> TOUGH MUDDER Section one: Problem Definition A. Description of Tough Mudder Melbourne Event Tough Mudder Melbourne Event will be held at the State Motorcycle Sports Complex Broadford. The complex is located in Melbourne. It is only about a one-hour drive distance. The event is managed by Tough Mudder Pty. Ltd and the dates are set for October 17th and 18th 2015. B. Description of the industry problem Tough Mudder Melbourne Event is faced with numerous challenges. However, some problems supersede the others. The main problem that is facing the company is marketing. Marketing is a broad term that has taken many scholar massive research and development. Sports in one of the most liked avenue for leisure and recreation. The economic, social and political factors are very conducive for this event. Therefore, fans all over the world gather to watch sports events such as football, basketball, and others. The sports sector is therefore faced by the competition. Sports organizations compete for fans, customers, and limited resources. Due to this fact, there has been the great need for better marketing skills, knowledge, tools and techniques. C. Needs of the Client Tough Mudder Melbourne Event is not an exception. It faces a lot of marketing challenges in their search for better markets. Additionally, due to the advancements in technology, everything is being globalized. Regarding this globalization, organizations need marketing to gain access to larger markets. These markets comprise the stakeholders such as customers, sponsors, and managers. Tough Mudder Melbourne is therefore faced by the need to increase its clients worldwide. It is this need for a large number of customers that create more challenges in the field of marketing. It is ensuring that marketing is done perfectly that the organization can maximize on profitability. The organization, therefore, needs better marketing approaches to gain the competitive advantage in the local and domestic market (Morrow and Howieson, 2014 p.518). Section two: Literature Review A. Introduction The purpose of this review is to expound more on the need of Marketing. Tough Mudder Melbourne Event needs a lot of customers to ensure that profit maximization is achieved. The organization requires wider access to the markets to accomplish this successfully. This review will, therefore, lay emphasis on various concepts of marketing. These concepts include marketing theories, knowledge and event management skills and techniques. By analyzing these concepts and theories in detail, the management of this event will be in a position to precisely understand marketing. Various done work by renowned authors and scholars will be highly consulted. B. Body Sports event marketing a broad field that requires in-depth research to successfully tackle the challenges associated with it. Parent and Smith-Swan (2013) argues that "The marketing of sport events is an area that covers a wide variety of practices and incorporates the theories and concepts of several scholarly fields of study" (Parent and Smith-Swan, 2013 p.97). This suggests that marketing of sporting events is a complex issue. It, therefore, calls for complex approaches to tackling the marketing issues successfully. For instance, the management of Tough Mudder Melbourne event must ensure that significant theories and concepts are considered. As a result, it can be argued that marketing deserves attention from the top management. As the top management of the organization plan on the future of the organization, marketing should be given more priorities. As resources are being allocated, marketing should receive the better share of them. Secondly, many organizations are embracing the globalization of business. Trengrove at el., (2014) argues that "Internet marketing is the fastest growing and most exciting branch of marketing today. As the world becomes ever more connected, keeping up with developments and trends is vital for marketers trying to reach new audiences – who are more discerning, fragmented and cynical than ever" (Trengrove at el., 2014 p.3). This suggests that there greater shift towards globalization. Due to the advancement in technology, businesses have shifted to global markets. Here, there wider access to customers and hence increasing the profitability of the organization. As a result of this globalization, there is the need for the Tough Mudder event managers to ensure that they embrace this technology trends immediately. They will be in a position to access wider and larger variety of customers. This will be very beneficial to their company productivity and organization. There is the need to accept marketing through sports as an integral part of the business industry. Fullerton and Merz (2008) argues that ""In order to fully appreciate and understand the dynamics and differing perspectives of sports marketing, it is imperative that the task of marketing through sports also he accepted as an integral component of the industry." (Fullerton and Merz, 2008 p.90). This is a clear indication that other business organization use sports as a marketing avenue. In the process sports activities gets exposed to the potential customers. In that regard, the management of Tough Mudder event should ensure that they work hand in hand with the other stakeholders such as the sponsors. This will ensure that marketing becomes efficient and effective. As a result of understanding and fully appreciating these dynamics, marketing in sports will be an easy task to achieve (Shilbury, Quick and Westerbeek1998). Sports are not only limited to the objective of entertainment of the fans. Buhler and Nufer (2006) argue that "Sport is quite often described as part of the entertainment industry. Indeed, certain similarities cannot be denied. People watch sports be entertained. However, sports might be entertainment, but it also differs in some aspects from other entertainment sectors or ordinary businesses" (Buhler and Nufer, 2006 p.3). The management of Tough Mudder must, therefore, understand that a sport is a wide field. It is not only about entertaining the fans. It is a unique sector. This contributes to the fact that individual approaches must be employed in the marketing of this sector. As a result of this uniqueness, there is substantial need to ensure that the marketing techniques used are involved enough. This will ensure that the best results or outcomes are yielded out these approaches. C. Conclusion The literature reviewed clearly expounds on the issue of marketing. From this scholarly articles and books, we can conclude that marketing in sports is unique and insightful. It is imperative for the organization to ensure that they set very stable foundations on marketing. Through marketing, they can be in a position to achieve the best outcomes out of the Tough Mudder Melbourne Event. Section three: Data Collection and Finding A. Description and justification of Solving Marketing Problems There are several methods that can be used to resolve the marketing problems that Tough Mudder Melbourne Event is facing. Gibson (1998) argues that " Our first awareness that we have a problem, any problem, is when we see a gap- a gap between what was supposed to happen and what did happen, between our objective and our accomplishment, between our plan and our performance" (Gibson, 1998 p.7). This suggests that there are several options that the management of the event can approach. However, some methods are better and efficient than the rest. In that regard, the report will consider explaining three options that can best be implemented. By implementing these options, the organization will be in a good position to attract more customers. The first option that the management of this event should consider is the target market. The target market is one of the most imperative and widely used marketing strategies. Gheorghiu (2014) argues that "Define your market –gender, age, family life-cycle, class, ethnicity, size, spending power, location, psychographics" (Gheorghiu, 2014 p.9). They need therefore to define their target market. They need to know clearly who the customers and the potential customers of the event are. To do so, they need to know the age, class, spending power and even the location. The second option to solve the marketing problems is to use marketing mix. By marketing mix, the need to clearly understand the products and services they are offering. Also, they need to know issues such as benefits associated with each of these products and services. They will also be in a position to clearly understand how to gain the competitive advantage over the competitors. The third option to solve the marketing problems is to use internet marketing. Many customers are connected to the internet nowadays. This is facilitated by the fact that there has been the gradual advancement in technology. Many organizations are therefore embracing technology to increase their performance and hence maximize profits. At the same time, technology has greatly improved the customer service delivery. B. Advantages and disadvantages i. Target Market The identification of the target market has both pros and cons associated with it. The first notable advantage is that it enables the better understanding of the customer's needs, wants and demands. For instance, the management of Tough Mudder Melbourne Event will be in a position to understand these aspects of the customer. This will compel them to work towards ensuring that the products and services they meet the demands of the customers. The second advantage is that focusing on the target market ensures that profit maximization is achieved. When the demands and the wants of the customers are met, definitely the organization will benefit or increase their profits. There is less competition in the target marketing. When the organization narrows down to its customers, the potential of attracting competitors is very minimal. Target marketing is all about providing goods and services to the customers interested in them. It, therefore, enables the organization to redefine itself and improve service delivery Evans, James and Tomas, 1996 p.209). However, target marketing also has its cons. Firstly, target marketing is not appropriate for a growing business. It is more inclined to a small business that is not motivated by the need for larger markets. For instance, if the management of Tough Mudder Melbourne Event only narrows down themselves to the youths it is very risky. They need to expand their markets to the young, adults and that will enable them to grow and develop. Secondly, there is limited growth due to the specialization on the small target group of customers. In this regard, maximization of profits will be very slow. ii. Marketing Mix The first advantage of the marketing mix is that it enables the organization to allocate resources to the best marketing considerations. For instance, the management of Tough Mudder event can make a decision to concentrate on using the social media to market its sports activities. In so doing, they will be in a position to allocate more resources to the mix. Marketing mix also enables the organization to conduct the most in-depth research. This research will ensure that the marketing plan derived is implemented so as to ensure efficient service delivery and customer satisfaction. For instance if the management of Tough Mudder event decides to use the internet as the primary marketing avenue, they will be in a position to achieve the best out of it. Marketing mix also allows the organization to promote its products and services effectively. By doing such promotions, they will be in a position to attract more customers and larger markets. All these will translate to better performance of the organization. Marketing mix also has it disadvantages. Firstly, the marketing mix is a broad strategy of marketing. It entails the price, product, place, and promotion. Mastering all these P's of marketing mix might be a challenge to the organization. The marketing mix, therefore, is a time consuming and tedious strategy to master. Secondly, marketing mix involves promotion of the products and services. These promotions are done through the internet or other advertising media. Print advertising can be very expensive for the organization. It will, therefore, require a lot of funds in order advertise. The strategy also entails concentrating on the place. Focusing on one area might lead to other disadvantages. For instance, if the management of Tough Mudder Melbourne Event decides to major only on customers around Melbourne will be a tragedy. They will not be in a position to grow and expand their market territories (Greenfield and Osborn, 2001). Section 4 – In-depth Action Plan of Internet Marketing A. Description of Internet marketing Trengove (2013) at el., defines internet marketing as "Internet marketing – often called online marketing or e-Marketing – is essentially any marketing activity that is conducted online through the use of internet technologies. It comprises not only advertising that is shown on websites, but also other kinds of online activities like email and social networking. Every aspect of internet marketing is digital, meaning that it is electronic information that is transmitted on a computer or similar device, though naturally it can tie in with traditional offline advertising and sales too" (Tregove at el., 2013 p.4). Tough Mudder Melbourne Event needs to consider internet marketing as the priority of the option to solve marketing problems. Internet marketing is becoming the most used and applied method in the market. Trengove (2013) and all the other authors explains clearly what the strategy entails. Today's advertising world is mainly done through the internet. This is stimulated by the fact that technology is advancing day in day out. There have been several technological devices such as mobile phones and computers that can access the internet. Users of these devices, therefore, are the primary potential customers of internet marketing. However, there are several key concepts that the management of Tough Mudder Melbourne Event needs to implement. Firstly, they need to ensure that they have the necessary technology to support internet marketing. The necessary technology could include computers and network access. They also need to develop an effective website. This website will act as an interface between the organization, the customers, and other stakeholders. To achieve this, they need to employ highly skilled and professional web designers. These should be implemented as soon as possible. On this website, the events will be advised. Details such the venue, location, tickets and prices will be availed to the customers. The second issue to be implemented is to run promotions on the website. These promotions can be scheduled for an interval of periods. For instance, the organizers of the event can choose to run weekly or monthly promotions on the website. This website is linked also linked to the social websites. Social websites such as Twitter and Facebook has a lot of users who are potential customers. As they learn about the competitions and promotions, they will get to know more information on the event. In so doing the marketing problem will be solved. Finally, the organization needs to ensure effective interaction with the customers. This will ensure that all the arising problems or inquiries are dealt with immediately. It will improve customer satisfaction. B. Advantages and Disadvantages on Internet Marketing The first notable advantage of internet marketing is the availability of information. Customers can access information easily by navigating the Internet. Any customer connected to the internet will, therefore, be in a position to access information easily. For instance, the customers can get to know the cost and location of events online. The ease in access to information will save both time and money for the customer. Connecting to the internet is a very easy and cheap process. In that regard, even the average customers will have no reason to access this information. Secondly, internet market is cost-effective. It enables the organization to save a lot of money. Money that could have been used to print advertisements is allocated for other uses or saved. Thirdly, Internet marketing enables the organization to operate globally. The fund that could have been used for other marketing strategies is converted to other useful uses. This will ensure that the organization is at the bar with the competitors. Additionally, the organization will be in a better position to maximize profits as well as ensure customer satisfaction. By operating globally, they will be in a position to attract more customers and access larger markets. For example, the existence of Tough Mudder Melbourne Event online will not be limited to only customers from Melbourne. Interested customers from other cities or countries can book to attend the event. This leads to greater performance in terms of customers and profit maximization (Jones and Silverstein, 2009). However, internet market also has its demerits. Firstly, technology failure or setback can be a source of difficulties. The complexity of the websites can create difficulties to the customers. This is a very common case where the customer's network coverage is slow. Secondly, there is a great challenge in payments. Many customers don't trust the electronic systems of payments. For instance, if the management of Tough Mudder Melbourne Event sells the tickets online, many customers may not trust it. They will have to be convinced within no reasonable doubt that their transactions are saved for them to believe. Thirdly, internet marketing is prone to security challenges. There are several security risks associated with online technology. Transactions can be manipulated by malicious people. These people like the competitors can hack the websites and post irrelevant information. By so doing, they damage the reputation of the company leading to the losing customers. Finally, internet marketing is an expensive option to implement. It will be costly to the organization to put in place the necessary technology from scratch. Additionally, they will be compelled to hire highly skilled and qualified profession. All these will require enough funds. The organization must, therefore, plan and strategies well before undertaking this approach of solving marketing problems (Cherubini, 2013 p.110). C. How it fully addresses the client brief in an innovative way This report is detailed and analytical. In-depth research conducted and the recommendations made will boost the performance of Tough Mudder Melbourne Event once implemented. The report concentrates on the fact that the management had numerous marketing problems. They needed access to larger markets. They also needed access to a lot of customers. The answer to all these problems is internet marketing. Internet marketing is becoming the most applied business strategy. Trengove at el., argues that "Technology and software are changing at such a high rate that it seems almost impossible to keep up with trends. Products and services are evolving and adapting to the online sphere. The web is constantly shifting, growing and changing – everything is fleeting" (Trengove at el., 2013 p.3). This suggests that there a high rate of technological advancements. Technology is becoming part and parcel of every business activity. The use of internet marketing strategy is, therefore, the best option for Tough Mudder Melbourne Event. By implementing it, they will be in a position to register their presence online. This means that customers can access their products and services globally. In so doing they increase their markets. Increasing the markets has a lot of benefits. Firstly they will be a position to maximize on profitability. For instance, if customers access the website and purchase event tickets online, they will be capable of making larger amount of money. Secondly, their presence globally will give the organization a competitive advantage. Several sports organizations are operating globally through the internet. Including some creative and innovative implementations on their internet presence will make a difference. For instance, if the organization ensures that they run periodic promotions and contests on social media, they will be in a position to attract more traffic. These traffics are the potential customers to the organization. They will, therefore, have solved the marketing problems in an innovative and successful manner. References Parent, Milena M., and Sharon Swan. "Marketing, Sponsorship and Look-feel." Managing Major Sports Events: Theory and Practice. New York: Routledge, 2013. Print. Jones, S., & Silverstein, B. (2009). Business-to-business internet marketing seven proven strategies for increasing profits through internet direct marketing (5th ed.). Gulf Breeze, FL: Maximum Press. Chaffey, D. (2000). Internet marketing: Strategy, implementation, and practice (2nd ed.). Harlow, England: Financial Times Prentice Hall. 2015 Melbourne. (2014, November 19). Retrieved October 13, 2015, from https://toughmudder.com.au/events/2015-melbourne Tough Mudder 2015 Redefined | Official Video. (2013). Retrieved October 13, 2015, from https://www.youtube.com/watch?v=Jim-ksScOoc&feature=player_embedded Tough Mudder | Melbourne 2015 - Alpha Testing | Teaser. (2015). Retrieved October 13, 2015, from https://www.youtube.com/watch?v=sYBVemSeIE4 Gibson, L. (1998). Defining Marketing Problems. Don't Spin Your Wheels Solving the Wrong Puzzle, 1-12. Sir Norman Chester Centre for Football Research (2002) Fact Sheet 10 – The ‘New’ Football Economics, Sir Norman Chester Centre for Football Research .Retrieved 13thOctober 2015 from . Shilbury, D., Quick, S. and Westerbeek, H. (1998) Strategic Sport Marketing, Crow Nest, Al-len& Unwin Morrow, S., & Howieson, B. (2014). The New Business of Football: A Study of Current and Aspirant Football Club Managers. Journal of Sport Management JSM, 515-528. The Advantages and Disadvantages of Niche Marketing - Product2Market. (2014). Retrieved October 13, 2015, from http://product2market.walkme.com/advantages-disadvantages-niche-marketing/ Gheorghui, L. (2013). Effective Marketing Solutions for your Small Business. Ideas for Today and Tomorrow, 1-19. Greenfield, S. and Osborn, G. (2001) Regulating Football – Commodification, Consumption and the Law, London, Pluto Press Cherubini, S. (2013). Co-marketing: A new challenge for football managers. Marketing and Football, II, 108-129. Evans, A., James, T. and Tomas, A. (1996) ‘Marketing in UK Sport Associations’, in Service Industries Journal , 16(2), pp. 207-222. Read More