Evaluating Marketing Planning

Task 1

1.1 Reviewing changing perspective in marketing planning

Situational analysis

This plays an important role for Argos as sometimes an organization's own plan can lead them into a big problem. Being a trusted retail organization in the UK, Argos has to fulfill its customers' demands by identifying their necessities and wants. Further, this shows that the cited company has to determine the market demand, customer's tastes, and their competitor's strengths and weaknesses. By analyzing all the above factors, the mentioned retail company can now compare its own position in the marketplace. Further, the mentioned company can conduct SWOT, PESTEL, and Porter Five Force models in order to see the stability and competence of the cited organization. This will certainly help Argos to give tough competition to their major competitors like Tesco, Asda, and Sainsbury, and the company can get a competitive advantage with it.

Marketing mix element

Marketing mix elements consist of product, price, place, and promotion. Apart from these elements, Argos also focuses on excellent features of products and services, packaging, and building goodwill. These all elements attract consumers to organization products. However, the price of the product plays a specific role as the organization focuses on developing the best of the products to their customers at a reasonable price. Furthermore, organization stores are convenient places and they are easily accessible by customers for shopping.

Market-led strategy

Market-led is a strategy where Argos identifies the needs and wants of consumers and these needs help the mentioned organization to develop and serve products and services to customers. This process is only possible when the aforesaid company does specific market research.

1.2 Evaluating the organization's capability for planning future activities

Organizational capability is considered as the ability of a company which is generally verbalized in the form of human resources, physical and material resources like machines land as well as buildings, financial resources as well as different intellectual resources. Argos is considered one of the recognized brands in the UK in the retail sector. Corporations are trying their best to give their top competitors stiff competition by increasing the size of products. Further, the mentioned company is focusing on a marketing plan which shows clearly stated objectives for the coming years. The organization is successful because of its prior concentration on a specific country as Argos has existence only in the UK and Ireland. A cited company can successfully implement all the major resources, especially the human, financial physical, and material resources to get a competitive advantage as this will help Argos to increase more of revenue and productivity.

Furthermore, the organization has a wide range of products that are categorized into different segments that satisfy individual needs up to a great extent. Argos also has many owned and exclusive brands which gives customers a lot of confidence when they buy some product from aforesaid company. Moreover, an organization is considered number one in some product categories. Along with their retail outlets, Argos has approx. 900 million websites and app visits by their potential customers. The mentioned company also constitutes more than 53000 products which automatically attracts consumers towards their products.

1.3 Techniques for organizational auditing

There are various ways of organizational auditing that Argos can implement in order to increase its product size as well as revenue and profit by developing its product Portfolio. Argos can do a SWOT analysis in order to carry internal analysis of a business organization. With the help of SWOT analysis, a mentioned organization will come to know what are the positive elements in them and also what they lack as compared to their competitors. Moreover, the mentioned company's strength is its strength of stores in the UK as Argos has almost 800 stores in the UK. Further, the company also seeks its strength in providing online services to consumers for their comfort and relaxation. However, with all such capabilities cited company has some drawbacks that can affect its brand image and turnover. Controversies like Sunday working affect the performance of individuals working in the retail stores. Further, with such stiff competition, the cited organization is not able to increase its market share. A company's threats can affect the revenue and they have to overcome them in a quick time period. These are generally related to the international expansion of different brands which will also give tough competition. Further, major changes made by the UK government in the retail industry in terms of policies and regulations.

Further, Argos can conduct a PESTLE analysis in order to scan the external environment to improve their productivity and it will help Argos in a significant manner. This analysis will help corporations to know what are the major factors affecting growth and profit majorly. Further, these are the factors that majorly affect Argos' plan and strategy and significantly these factors have a negative impact on the organization's growth and revenue.

Moreover, competitors analysis will help a mentioned company to know their major competitors. This analysis will broadly help Argos to know competitor's objectives along with their strength and weakness. Further, for better productivity and revenue organizations can also implement value chain methods to develop a valuable product.

1.4 Carrying out organizational auditing and analyzing external factors

Macro environment analysis helps business organizations scan the environment in order to set their new policies as per the norms and regulations of the UK body. These factors can increase or decrease the need for a product and create entirely new product needs. Macro environmental analysis for Argos is stated below:

Political

These factors have a great impact on the mentioned company's products as the government is trying its best to give consumers protection by various acts, rules, and regulations. Further, in order to save them from eating disorders, the government checks each and every food substitute which tends to consume more time in order to reach customers. Argos have to function their business activities by considering the Food Safety Act 1990 and must produce only those goods that are essential and protect human health.

Economic

Sometimes Argos faces economic changes which literally decreases the demand and affects corporate revenue as well as the profit. The cited company also faces some restrictions in relation to various rules and regulations in tax policies, purchase of raw materials from suppliers, and different aspects.

Social

Argos usually develops products by considering the needs and demands of their potential customers. Argos cannot force customers to choose their products, the only thing which company can do is the effectively advertise which can attract the minds of individuals towards that product or service. Furthermore, an organization faces problems because of customer's perceptions, different lifestyles, income levels of individuals, etc.

Technological

Organization can improve their functional activities and profits by establishing new and updated technologies. Further, effective design of the website and publishing their new products with the help of SEO can attract customers which can increase the brand image and revenue of the company. Micro environmental analysis for Argos is done with the help of SWOT...

Quality of products

The organization has more than 53000 products which are categorized as home appliances, electronics, baby care, food products, beauty and personal care, clothing, etc. These products satisfy customer's needs and wants on a daily basis. The organization further has well-developed goodwill and a positive image in the eyes of UK customers.

Innovative label

Argos has a large range of products and these products will be increasing in the coming time period. Mentioned company has its major focus on satisfying customer's needs and also to develop a loyal customer base. Modern packaging and design can attract individuals to their products.

Long working hours

Organization in order to satisfy their customer needs works on Sunday as well. This makes employees annoyed as they are not able to maintain their personal and professional lives.

Worldwide presence

Argos currently has its operations in the UK and Ireland only. The organization has to look forward and set their retail outlets in other countries as well to increase more of their revenue and productivity.

Expansion

Argos has to expand its business ventures throughout the world like its other competitors Tesco, Asda, Walmart, etc.

Revenue

Mentioned Company has more than 25% of sales online. With all new features and segments organization can increase it in a well definite manner.

Competition

Existing giant competition in the retail sector will give tough competition to Argos.

Rules and regulations

Changes in government policies might affect the operational activities of the mentioned company.

Task 2

2.1 Barriers to marketing planning

Organization has to overcome these barriers in an effectual manner and prepare their plans and policies by considering these elements only as it does not impact the business environment.

Organizational culture

Organizational culture at times affects the functioning of the organization as employees come from different geographical areas and they have their own language to communicate. Sometimes it acts as an obstacle because it leads to miscommunication. Further, not taking feedback from customers can lead to a barrier in the coming time period.

Ethical issues

Consequences arise within Argos when some employees come in favor and some against a specific plan. Further, when the plan is implemented those who were in favor of the plan get more priority and benefits as they have only suggested this. This will also increase salary and other benefits which circumstantially act as a barrier within the mentioned company.

Leadership skills

Leaders are the one who develops the gap between employers and employees within company. In an organization, leaders who do not have capability to approach their employees will not be able to collect relative suggestions and innovative ideas which will lead to a decline in organizational growth.

Isolating marketing functions

To perform operations effectively, Argos needs its teams to operate and work in a unified group as it includes working towards common business goals, and sharing information about the business, customers, markets, etc.

2.2 Solutions for overcoming the barriers

Argos can overcome these barriers as explained above by having a proper market analysis of their products which will further help them to understand segmentation, targeting, and positioning strategy. Further, to have proper communication skills, the HR manager of Argos can conduct a training and development session in order to have effectual communication both with employees as well as with customers. Further, Argos has to look over all the major functions within the organization such as operational, financial, sales, and marketing in order to generate more revenue and productivity.

Further, in order to overcome the problem, the cited company can implement some of the above-mentioned points in order to increase their productivity and revenue for stiff competition. Implementing effective leadership skills will lead individuals to work with more of dedication and concentration.

On the contrary, Tesco also faces identical barriers but being a reputed retailer around the globe, they have efficient and effective techniques to overcome them. The organization focuses on analyzing cultural and market situations along with the customers' demands. The organization further has effective leaders who guide employees and divide all the tasks and responsibilities in a fluent manner. The organization further focuses on low-price products as more and more customers get attracted towards it and this is the only reason for Tesco's revenue and profits.

Task 3

3.1 Marketing plan for a new service

Effective planning is a crucial aspect of any marketing plan because it assures that a profitable supermarket realizes its marketing goals for present and future time period. Representative of Argos has a new service plan for the mentioned company as they have to expand their retail business in Dubai. For this, approx. £500,000 investment is required from Dragons by the cited company. This organization has a marketing plan:

Target market

Argos will open its retail store at a convenient place where the mentioned company will be the center of attraction. Further, the organization has a wide range of products in different categories which will satisfy the needs of all potential customers.

Marketing strategy

Argo's focus is to deliver quality products at a reasonable cost and also within a specific time period. The main motto for opening a retail store in Dubai is to give customers a brand new experience as they do not have to even go out to buy a product and significantly it will reach their place. The product will be delivered within 2-3 hours of the purchase. This guarantee is taken by the Chief Executive of Argos.

3.2 Marketing planning is essential in the strategic planning process

A marketing plan is a written document that details necessary actions to achieve one or more marketing objectives. It can be for a product or service, a brand, or a product line. Further, these marketing plans cover from one to five years. A strategic planning process is undertaken by Argos in order to provide a plan to achieve specific goals and objectives of the organization with the help of their talented employees. Further, strategic planning for Argos identifies all the internal and external strengths and opportunities in order to prepare strategies and tactics. The objective of a strategic planning process is to set and develop a new way for the organization and create its shape and structure so that the products and services that Argos is producing help them to achieve their corporate objective.

On the other hand, marketing planning has to assess on developing a suitable plan for the mentioned company which helps them in achieving those goals. Further, marketing planning has a key role to play in strategic planning because it is the priority of every department in Argos to understand and manage important links between the environment and business.

3.3 Examining techniques for new product development

Argos has opted following techniques in order to attract Dragons' minds towards their new concept.

Product development Schedule

The company in order to attract the minds of Dragons explained their product development concept. Under this method, Argos first design the structure for their project and establishment. Further, they will take the initiative to run selected products at an initial level. This is because the organization has to identify the distance and the traffic in Dubai. After the initiation, the test will be conducted by having a dummy example. Further, if they got succeed organization will start having full development of the business there. Within a specific time period organizations will be able to study the concept and they will start having their production process there. Organizations in the starting period will sell only those products that consumers need in a significant manner and after that, they will start growing their business.

3.4 Recommendations for pricing policy distribution and communication mix

In order to settle retail business in Dubai, the organization will focus on to have customer's attraction towards their products. For this, the pricing strategy for Argos will be based on the following elements.

Skimming pricing policy

This pricing policy will help Argos to recover all the expenses which are incurred while setting up a business in Dubai. This policy has a drawback as the price of the products is high and they will not be able to attract more customers.

Penetration pricing strategy

The mentioned Company can implement this strategy where the price of the products will be low with a significantly low-profit margin. For the starting period, the mentioned company will be able to increase sales with a relatively low profit margin (Arena and Azzone, 2009).

Further, the distribution policy will have its own significance as the aforesaid company will be at its initial stage in Dubai. Therefore, Argos will only focus on an intense distribution policy, this is a policy where customers will get products at the organization's retail store only. Moreover, to communicate with their customers in Dubai, the mentioned company has to opt for various communication policies. These are...

Advertisement

Argos has to advertise its new establishment of retail in Dubai's national newspaper. This will lead to more of the customer's attraction. Further, cited companies can advertise on radio channels, banners, hoardings, etc.

Social media

Argos can promote its new venture with the help of social media as a corporation has its official Facebook page which has millions of likes. Further, updates on Twitter and Instagram will make a significant difference again (Mohaghegh, Kazemi, and Mosleh, 2009).

Task 4

4.1 Ethical issues which affect marketing activities

Ethical issues are those which can affect the marketing activities of the mentioned company. If Argos makes false advertisements relating to their products and services, then they will not be able to make a potential customer base and also lose the existing ones. For Argos, negative advertisement might affect their sales, productivity, and profits. This highlights the disadvantage of the Argos services and customers will see the bad effect of it.

However, Marks and Spencer (M&S) is a popular brand in the retail and clothing sector in the UK. With the increase in complexity and trust of customers, M&S not operating any false activities in their organization as they know this will harm their goodwill in a significant way. Further, there are various incidents and cases of commercial fraud are pending in UK Courts.

Further, children are attracted to fast food products which at times lead to obesity and digestion problems. Walmart by considering all these facts into consideration checks each and every product in order to see any side effects of it. This is the only reason why Walmart is considered a king of the retail sector around the globe.

However, in order to solve all these ethical issues in their firm, Argos has to take some necessary steps. Argos has a dominating position in the UK and Ireland but now it is the time for them to explore their business globally. Cited company has to make some potential customers in order to increase their sales for the starting months. Home delivery of the product needs to be specific and also should be delivered at a particular time. Being a Muslim culture in Dubai, the mentioned company should not follow any type of advertisement that affects their lifestyles or thinking. This will have a major impact on individuals living in Dubai and Argos will lose their set market. Further, they have to classify their products by marking symbols for vegetarians and non-vegetarians as there are some individuals who do not eat non-veg. The mentioned company can further implement the tactics used by the other retailers in order to expand their market share and goodwill.

4.2 Consumers' Ethics Affecting Marketing Planning

Customers are the king of market marketplace and they are generally the backbone of marketing plans in the retail sector. Argos focuses on delivering products to customer's homes as they do not need to travel a single step and they can either order it online or by calling the retail organization. Customers should not take this service as an advantage and must not play any pranks on the service provider. Telling them the wrong address for delivering the product will be hectic for organization and this will increase the functional and operational costs for the organization.

Another example of this can be in the electronics sector, as customers get a warranty for the phone which they have purchased, they should not take advantage of this service by damaging the phone of their own and blaming the electronic organization for the mishappening. Consumers have to understand this point and not take any illegal advantage of the facilities provided by the company. Individuals will be affected if organizations and governments start taking strict actions against them.

Conclusion

From the above report it is clearly stated that Argos is a dominant leader of the retail market in the UK and Ireland and now trying to mark its presence in other countries as well. Further, this report shows that the mentioned company has a large product size and is differentiated in different categories which satisfies customers' needs and wants in a positive way. Moreover, this report is also evidence of different ethical practices opted by Argos in order to increase their customer base and market base without affecting the environment.

Also Read: Role of Marketing and Its Interrelation With Other Functions

References

• Aaker, D. A., 2008. Strategic market management. John Wiley & Sons.
• Arena, M. and Azzone, G., 2009. Identifying organizational drivers of internal audit effectiveness. International Journal of Auditing.
• Constantinides, E., 2006. The marketing mix revisited: towards the 21st century marketing. Journal of marketing management.
• Dibb, S. and Carrigan, M., 2013. Social marketing transformed: Kotler, Polonsky, and Hastings reflect on social marketing in a period of social change. European Journal of Marketing.
• Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
• Huang, R. and Sarigöllü, E., 2012. How brand awareness relates to market outcome, brand equity, and the marketing mix. Journal of Business Research.

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