Mkt 571: Price and Channel Strategy Assignment
Memo
To: , Senior Vice President (SVP) Marketing Department
FROM: Analyst
Date:
SUBJECT: Marketing Strategies to Improve the Company’s Revenue Earnings
Thank you in advance for reading this memo that identifies what I have reviewed based on our company collected data and financials.
From my analysis, I see that we have experienced some changes in the revenue earnings from 2015 and Quarter’s One and Two from 2016 financial year, this could be based on the strategic operations adopted. There was a general improvement in the company’s financial performance; there were areas that had a noticeable decrease in revenues; this could be possibly due to management not releasing the funds to finances promptly for implementation of strategic plan.
In the review, I noticed three major areas showing increased revenues were the Domestic in our Global Breakout area, Expand in the Customer Rank area and Commercial in our Customer Class area. Please see the table below this provides a full view of what the Revenue Earnings were in both quarter’s one and two as well as the comparison and increase from 2015 vs. 2016.
| Revenue Earnings Qtr. 1, 2016 | Revenue Earnings Qtr. 2, 2016 | Revenue Earnings 2015 vs. 2016 | |
| Domestic | $12,085,137 | $6,145,978 | + $1,930,466 |
| Expand | $7,634,424 | $4,017,070 | + $1,282,340 |
| Commercial | $7,195.592 | $3,719,525 | + $1,130,973 |
(University of Phoenix, 2017, p. Spreadsheet).
The increase in revenue was due to the growth made by our marketing and advertisement teams and their incredible strategic planning for improvement.
In my analysis, I also found some areas where the services sector was lower on the revenue earnings in the last quarter of 2015 as well as the first two-quarters in 2016. It is important that changes are made to ensure there is productivity from all the sectors. My recommendation in this area would be to allocate additional funds to their financing and operations to attempt and correct some of their losses; this is similar to what we did with the other three identified, and we did very well.
The overall analysis of the company revenue earnings shows that there has been a general increase in the last few years based on the data received and reviewed. It is clear that we rely on all of our customers for our products, but it is important to provide an expansion strategy and that we adopt as soon as possible to continue to help and venture into the foreign markets and reach a higher market share. If we adopt this expansion strategy, this will more than likely help increase our revenue as it has in the past two consecutive years.
My analysis includes a review of the data of our domestic customers, they are our principal assets, and we seek to attract and retain more of the customers through a motivated workforce. The major objective of our marketing strategies is to increase our market outreach to domestic customers by enhancing their awareness of the existence of our products and services. We will need to conduct intensive marketing campaigns through online marketing and broadcasting advertising, and we will need to additionally explore marketing in the foreign countries to help increase opportunities to a much larger audience and attempt to excel from what other existing companies are providing and marketing.
We need to focus on attracting new clients not so much the retention only of the existing customers. We will need to establish customer trust and royalty by the production of quality, affordable and after sale services in addition to our company considering changing the operations to ensure premium services and products to be differentiated in the industry. We need to hire and recruit employees in our production lines that are competent, properly trained, have knowledge of our company products as well as the goal and direction of the growth vision. Workers that can use their skills consistently and also increase our technological requirements for the recruits, this will provide us with the best of the best.
Sincerely,
Claudia Hernandez
Claudia Hernandez, Analyst
Part two
Summary of a Company of Choice
Facebook is an LLC, and Headquarters are located in Menlo Park, California according to Google; also, Facebook was founded in February 2004 by Mark Zuckerberg and his four colleagues in Cambridge, MA (Google, 2017). The company operates in the social networking industry and has been one of the fastest growing enterprises in the industry. This company is a huge in the networking field/area. Facebook includes in-game social assess and targets social advertising. Facebook is key to facilitating social, online communication, social events, customer based marketing at finger tips as long as the consumer has a smartphone device, tablet, or a laptop with internet connectivity access.
Facebook has also diversified its services and offers other customer-oriented features such as affordability, flexibility, and reliability. The company uses acquisitions as a strategy to counteract competition and increase its market presence. For instance, it has acquired various businesses in the social networking industry including PrivateCore, WhatApp Inc., Oculus VR and Instagram. Facebook had a total of 450 full-time employees in 2007, but the number increased drastically to 12,691 employees in December 2015(Griggs, CNN, 2014).
Years ago, there was a social networking by the name of MySpace, which I used and in fact, I think that Facebook has surpassed anything MySpace ever had with social networking.
References
Google. (2017). Retrieved from https://www.google.com/search?client=safari&rls=en&q=what+city+are+the+headquaters+of+facebook&ie=UTF-8&oe=UTF-8#q=when+was+facebook+founded&*
Griggs, CNN, B. (2014). What's Oculus VR, and why did Facebook pay $2B for it?. Retrieved from http://www.cnn.com/2014/03/26/tech/gaming-gadgets/oculus-vr-explainer/
University of Phoenix. (2017). Business Growth Overview. Retrieved from University of Phoenix, MKT/571 website.
This assignment is designed to help students analyze and interpret primary and/or secondary data and research. First, students will be provided with a marketing report that allows for preparing basic executive level data insights. Second, they will be allowed to pick a company and product or service. This assignment will help prepare students for the development of their marketing plan. Students will be creating a marketing plan (refer to Marketing Plan and Outline document) so they may want to choose a company and product or service that has data readily available or where they can use demographic/psychographic data to provide insights.
Resources Required
Week 1 Business Growth Overview
Assignment Steps
Part 1:
Analyze the Week 1 Business Growth Overview dataset. This is a marketing report generated by an analyst for the Senior Vice President (SVP) of Marketing at a large corporation. The analyst is new and has provided summary data but no insights or commentary for the SVP.
Construct a minimum 525-word memorandum for the SVP providing insights and commentary. The memorandum should include your analysis of the following:
Major areas of increase and decrease in revenue or type and/or category of business
Trends that are evident in terms of revenue or type and/or category of business
Insights that would help formulate marketing strategies to either continue growth or reverse decline
Additional analysis you (if you were SVP) would like to build a marketing goal and strategy or strategies (and why)
Part 2:
Select a global or multi-regional (does business in more than one country) company and one of its products or services that will serve as the basis for your marketing plan. You should obtain two years of annual reports as well as two years of 10K reports (provides a comprehensive overview of the company's business and financial condition and includes audited financial statements) for your data source. Once you have selected your product or service, you must define the size and type of your selected company that provides the product or service (available from annual reports). This need not be elaborate but must include total number of employees, production volume, distribution methods, and so forth. Record this information in a summary document as outlined below.
Company and product selection is a critical part of this project. You must ensure your proposed company can implement the marketing methods discussed in Marketing Management.
Prepare a minimum 175-word summary document and send it to your instructor as a record of your selection. The summary document should include the following:
Name of Company
Location of Company Headquarters
Name of Product or Service selected
General description of company (number of employees, revenue, type of ownership, web page, etc.)
General description of product or service
Format your assignment consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.
| Content | Met | Partially Met | Not Met | Comments: |
| Student analyzes the dataset and provides insight and commentary in the form of a memorandum. Student’s analysis includes major areas of increase and decrease in revenue or type and/or category of business. (1 Pt) | .9 | Major areas of increase in revenue identified and hy was discussed and did include table but images/graphs and details. Also, the SIC code and industry information should be included going forward. Did mention category of business as retail. | ||
| Student’s analysis includes trends that are evident in terms of revenue or type and/or category of business. Student’s analysis includes insights that would help formulate marketing strategies to either continue growth or reverse decline. Student’s analysis includes additional analysis you (as SVP) would like (and why) to build a marketing goal and strategy or strategies. (1 Pt) | Trends should be based over 3 to 5 year period and include forecasts that are evident in terms of revenue, customer satisfaction or other information such as units sold. Good personal insights identified that would help formulate marketing strategies to either continue growth or reverse decline. Additional analysis as SVP based on a marketing goal with strategies and why should be considered. | |||
| Student selects a global or multi-regional (does business in more than one country) company and one of its products or services that will serve as the basis for your marketing plan. Includes associated 2 sets of 10K and annual reports. (1 Pt) | The company is global and the service you selected is social netorking and should be adequate for developing the plan. Did utilize both sets of reports. | |||
| Students prepares a summary document that includes but is not limited to:
(.5 Pt) | .4 | All elements of the summary are included. At graduate level, additional insight should be included such as total available market size, SIC code with industry that is serves. Also, mission statement should be identified. | ||
| The memorandum is a minimum of 525 words in length. The summary document is a minimum 175 words in length. (.5 Pt) | .5 | The word count suffices for both the memo and summary with 666 and 217 within 10%. | ||
| Total Available | Total Earned | |||
| 3.8/4 |
| Writing Guidelines | Met | Partially Met | Not Met | Comments: |
| The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements. (.1 Pt) | .1 | Meets all criteria. | ||
| Intellectual property is recognized with in-text citations and a reference page. (.25 Pt) | .15 | Includes no insight related to the various learning activities for week 1 such as the chapter readings with “quoted” cited and referenced information. See below for examples. | ||
| Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper. Sentences are complete, clear, and concise. Rules of grammar and usage are followed including spelling and punctuation (.15 Pt) | .15 | Meets all criteria. | ||
| Include both grammar and turn it in reports and within course guidelines. (.5 Pt) | .5 | Both reports included and within guidelines. | ||
| Total Available | Total Earned | |||
| .9/1 |
| Assignment Total | # | 5 | 4.2/5 | Assignment submitted 1 day late resulting in .5 point deduction, thus 4.7 -.5 = 4.2/5 |
| Additional comments: Good start to the weekly assignments. Going forward, be sure to include insight from the learning activities such as chapter readings, graphs/images to support analysis and identify and apply various marketing processes. See image below on how revenue can be analyzed from year to year by adding a new sheet and then using excel to generate year to year difference and percentage change which then enables analysis to be conducted. | ||||
“Each business unit needs to define its specific mission within the broader company mission” (Kotler & Keller, 2014, p. 49).
Strategic planning will have to be “implemented to manage the business as an investment portfolio, assess the market’s growth rate and the company’s position in that market, and establishing a strategy” (Kotler, P.T. & Keller, K.L., 2016 p 37).
Reference
Kotler, P. & Keller, K. (2014). Marketing management (15th Ed). Retrieved from the VitalSource Bookshelf.
