Executive summary
The complex nature of a business process is defined by examining the role promotional activities. The impact of defining significant market segment is to establish an ideal customer base and among other factors, the advertising market is composed of information sharing metrics. In order to examine the potentiality of the clients, the impact achieved by promotional capacities is provided within a shared target including in segmentation and proportioning the distribution mechanism. Sales promotion includes examining ideal marketing perspectives including offering discounts and improving the relationship between the clients and the market factors. Thus, in the proportional capacities, the participatory composition includes clientele development and management. The selling model includes developing the nature of business establishment and improvement and in various levels creating responsive attributes that include measuring the features of product, price and quality controls.
Introduction
Marketing mix is the terminology that entails the artistic utilization of the statistical analysis for instance multivariate regression in sales as well as timed series of marketing data in the estimation of the effect of varied tactics of marketing .It also concerns the marketing mix in relation to sales with impact forecasts on future collection of tactics that is normally applied in the optimization of advertising mix as well as tactics in promotion with regard to revenues from sales or profits. This concepts rests on the background of an analytical approach with application of historic information for instance syndication of point on sale information as well as the company's internal data in the. As such the topic was selected so as to gain an understanding of the quantified impact of sales in varied activities of marketing in combination with sales at Guinness. The objective of this study is to analyze the market and the on-going change in customer preference resulting in modifications of the marketing mix, which relates directly to the marketing strategy used by the organization. Following objectives of this study will focus on an increase of brand awareness, creation of new packaging of the product, selecting the appropriate promotional channels and a proposal of a new branding strategy for the product. The aim of the study is to draw up a strategy resulting in an increase in sales of Guinness beer.
The maximization of the return on investment product, price, place and promotion must be modeled in order for a business to reach its desirable outcome and gain competitive advantage as defined in the theoretical works of McCarthy in which he also mentions under the term 4p’s of marketing’’ In his Basic Marketing, A Managerial Approach. Another theoretical approach is the suggestion by Frey in which marketing variables are required to be divided into two sub-groups, were presented with the offering category and methods. Another interesting approach has been identified by Lazer and Kelly that suggests the three sub categories to the marketing mix consisting of three frameworks identified as the goods and services mix, the distribution mix and the communication mix.
Aspects of the marketing mix are comprised in two components being base sales as the natural demand to a product with the drive taking the form of economic aspects such as pricing, trends in the long term, seasonal factors as well as qualitative factors such as awareness of the brand and the loyalty of the brand. According to (Piskoti, 2009) the other component is the increment in sales as this is driven by the activities related to marketing and promotions with further decomposition of the components being related to specific marketing components such as advertisement in media forms such as television, radio and print among others with the inclusion of new forms such as the internet platform.
Analysis of the marketing mix is identified in the typical exercise utilizing linear regression models with non linear and lagged impacts being inclusive of the applied techniques such as transformations in ad stock advertising. The normal output of this form of analysis comprises of the total decomposition of the overall sales in an annual context with contributions of specific marketing components. This brings us to the elements measured in the marketing mix model which comprise of volumes of the base and increment, media and advertising, trade based promotions, pricing, distribution, service or product launch as well as competition as the gist of the marketing mix as presented in research findings by (Ireland, 2010).
The base and incremental volume entails the breakup of the volume of sales into base which is the volume from generation with lack of activity in marketing as well as incremental as the generation of volume activities related to the short span across the gain of time the provides a positive insight. Media and advertising can provide a generation of individualistic media forms for instance campaigns of advertising with the possibility of examination of specified execution in market performance terms as well as the impact on the volumes of sales.
On the other hand trade promotions are the main activity in all plans of marketing with the objective being the increase of sales in the short run through employment of promotion schemes that are effective through increment of the awareness of the customers towards the business and its associated products. Customer responses to trade based promotions that are not clearly defined in addition to being subjected to considerable debate.
Pricing as a component of the marketing mix increases the impact of the brand and its sales in a negative way with this effect being observed in the modeling of price in the marketing mix model; This creates the provision of price elasticity in relation to the brand that provides for percentage change within the sales for specific percentage changes in price (Ngobo. et al. 2011). As such utilization by marketing management can provide evaluation of the impact of changes in pricing decisions.
Distribution as an element of the marketing mix is understood in the of distribution effort changes which in simpler terms concerns the prioritization of the efforts of specific channels or storage types so as to attain maximum out of similar channels. The marketing mix factor of launches deals with the launch of new products with associative publicity and promotions normally providing an outcome of increased volume generation than normal with the excess volume being entirely captured in models utilized in existing variables.
Competition as the final factor in the marketing mix model involves the impact of competition on the brand sales that is attained through formulation of the competition variables in accordance. These variables are formulated form activities related to marketing activities in competition such as advertising, promotions and product launch among others.
In conclusion there was identification of a close interconnection with the marketing mix with most of the businesses requiring the initial implementation of the marketing mix modelling and then moving to connecting the variables with different aspects of relationship marketing. This provides a basis for relevance of the aspects of the marketing mix can in utilization as one of the most practical marketing models.
Literature review
The analytical approach takes the form of a linear or non-linear mathematical equation through regression statistical techniques with marketing mix defining the effectiveness of specific elements of marketing in contribution terms related to volumes of sales in the volume generation by specific units, efficiency in the volume of sales from generation divided by costs and the return on investment. From these concepts if adopted in the adjustment of marketing techniques and associated strategies a company will experience the optimization of its marketing plans as well as being able to forecast sales with simulation of the varied scenarios. This is presented in the argument by (Piskoti, 2009) which states that this is achieved through the establishment of sales models in a volume or value setting being dependent or independent variables formulated from the varied efforts of marketing. The formulation of variables in the marketing mix model is a concept with complications as it is more of an art than a science with the balance being between automation of model tools that calculate data sets in comparison with an econometrician artistic approach with the debate continuing on the marketing mix model. After the formulation of variables at this point multiple iterations are undertaken to further formulate a model that provides an explanation of the volume per value trends in addition with added validations being undertaken either through the use of tools for data validation or through the consistency in business outcomes. Output is analyzed to ascertain the impact of elements of marketing in the varied dimensions with the contribution of specific elements being the percentage of the overall plotting in the year which is a positive indication of the effectiveness of the varied elements and the changes over a period of time. According to (Ngobo. et al. 2011)the annual change in contribution is measured through due-to analysis that provides the percentage for the change in overall sales that is attributed to the specific elements with measures such as marketing and promotions requiring additional sophistication in the effectiveness that is to be undertaken. The analysis provides the marketing management with increased gain in sales which can be achieved through increase in associated marketing elements on a per unit basis. This is not only beneficial in historical effectiveness reporting activities but is also helpful in the optimization of budgets for marketing through identification of most and least effective activities related to marketing. Finalization of the model provides results that can be applied in the simulation of marketing scenarios based on "what-if" analysis with reallocation of marketing budgets in varied proportions to observe the directed impact on the sales or value ratio. This can be followed by optimization of the budget through allocation of the expenditure to activities that attain the highest investment returns.
Discussion
The study concerns the creation of strategies that meet the need of the customer within the marketing mix so as to achieve the correct mix there is need to follow certain aspects such as the right product with correct pricing in the right location as well as with the utilization of promotion that is most suited. According to the argument presented by (Wong, 2011) we are presented with the indication that in order to formulate the correct marketing mix there is a need for business to meet certain conditions which include the product having the correct features such as a nice physical appeal in addition to correct pricing as the consumer requires large quantities in order for production of healthy profit. This is in addition to products in the right location in the correct timing by ensuring goods arriving in a timely fashion and in the correct location as a vital business operational aspect. I also found out that there is also need for the targeted consumer group to be informed in form of awareness of the existence and availed product using promotion with successful promotion providing assistance in the spreading of costs by the firm over a considerably large output.
Findings
As such Guinness as an alcoholic beverage producer is in constant development of new beer flavors and brands with the element of product being identified in the new products .In regards with attaining the right price involves the examination of the perception of its customers as well as rival products within the industry it operates. This is in addition to manufacturing costs with promotion comprising of engagement in a broad promotional activities such as competitions, coupon programs and gift giveaways among others with the location aspect involving the utilization of the best possible avenues for distribution concerns for example leading retail outlets and supermarket franchises. According to Ireland, (2010) the product remains as a pivotal aspect where the energy of marketing is emphasized with the need to find out how the product can be produced in which case seeking new beer production techniques in relation to the company's main product and production methods. With additional consideration of factors such as establishment of production lines with the provision of finance as well as product manufacture not existing as the role of functioning in marketing.
Conclusion
Given the information provided the concern remains however to the perception of the product in the view of the customer in which case marketing thus contributes a crucial role in the determination of these aspects for instance product appearance which is in line with the requirements of the market as well as the product functions with the need of the products tackle the customer needs through identification based on market research. The product range and its application in the marketing mix can be widened with the extension of a brand for strategic reasons for instance to match the competition of cater for fluctuations on a seasonal basis with the alternative being repositioning of a product so as to formulate it in a more accepted approach to certain consumer groups as comprised in the long term plan.
References
Piskoti, I. (2009). Methodologies and practices. Nagy in Management. 14, 400-451.
Piskoti, I (2009). New customer satisfaction methodology and practice. Economics Management. 14, 25-37.
Ngobo, P,. Casta, J,. Ramond, O,. (2011). The relevance of customer satisfaction as a metric for financial analysis. Journal of the Academy of Marketing Science. 40(3), 450-502.
Wong, A. (2011). Integrating supplier satisfaction and customer satisfaction. Total Quality Management. 11(4,5,6), 400-431.
Ireland, R. (2010). The role of the project manager in customer satisfaction. International Journal of Project Management. 10(2), 120-126.
