Marketing Management and Digital Communication (pdf)

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Running head: MARKETING MANAGEMENT AND DIGITAL COMMUNICATION
Marketing Management and Digital Communication
Name of the Student:
Name of the University:
Author Note:
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MARKETING MANAGEMENT AND DIGITAL COMMUNICATION
Executive Summary
The study develops the sturctured marketing and digital communication plan for Ingogo
Company, which is a unique cab operation business based in Sydney. It provides the online taxi
booking services for the people who like to avail taxi services for their daily commutes. The
situation analysis provides idea that the company has been facing direct competition with Uber.
Therefore, it became necessary to identify the external market opportunities that could bring
more profits for a sustainable position.
Maintaining the environmental law and availing the opportunities of the stable political scenario
are quite helpful for the company to offer such services to the customers. In fact, the customers
are more likely using the innovative apps that are making their searches quicker. Therefore, the
company is targeting business professionals, university and college goers, and the old people
who would like to ask for the services for a daily basis.
The fixed rates have been selected for the taxi ride. Ingigo has adopted the social media
marketing and other digital communication strategies to develop awareness. The structured
budget is allocated to invest the capital resources appropriately.
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Table of Contents
1. Introduction..................................................................................................................................3
2. Situation Analysis Recap.............................................................................................................3
3. Discussion....................................................................................................................................5
a) Problem Statement...................................................................................................................5
b) Discussion of the Potential Market Segment..........................................................................5
c) Discussion of the Target Market and Positioning...................................................................6
4. Marketing and Financial Objectives............................................................................................6
a) Marketing Objectives and Goals.............................................................................................7
b) Financial Objectives and Goals...............................................................................................8
5. Marketing Mix Strategy...............................................................................................................8
a) Marketing Mix.........................................................................................................................8
b) Marketing Strategy Implementation......................................................................................10
6. Budget Allocation for Promotion Mix.......................................................................................11
7. Conclusion.................................................................................................................................11
References......................................................................................................................................13
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MARKETING MANAGEMENT AND DIGITAL COMMUNICATION
1. Introduction
Business marketing procedure requires a unique strategic implementation that could
gather a number of customers and create a sustainable brand image. Current business world is
supported by the advanced technologies due to which the business marketers are adopting
innovative ways to promote their product to the target customers (Siguaw & Simpson, 2015).
Digital communication is one of those most innovative promotional strategies that help in
attracting a larger number of customers and creating the brand value while launching any product
to the market (Huang & Sarigöllü, 2014). The study would be discussing the marketing and
digital communication process of Ingogo Company, which is a unique cab operation business
based in Sydney. The study would be analyzing the marketing strategy implementation that can
help the business to achieve the target customer base. Identifying the situational prospects and
appropriate marketing as well as financial objectives, the study would provide the clear ideas
about the appropriate marketing management procedures undertaken by Ingogo Company.
2. Situation Analysis Recap
Ingogo is a unique app used by the daily commuters, who prefer to travel in taxis in
Australia. This innovative app is designed to provide relief to the daily commuters and develop
economic benefits. The situation analysis unfolds the fact that the consumers are more likely
travelling to the taxis in Australian City. This app would provide them the necessary facilities to
hire a cab for their daily transportation (Grubb, 2014). It is noticeable that the economic scenario
in Australia is rapidly changing due to which the Australians need to stay away from their home
for their official purposes (Hanssens et al., 2014). Therefore, most of them try to hire a commute
for their daily transportation. The political scenario indicates that the taxi operation business
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MARKETING MANAGEMENT AND DIGITAL COMMUNICATION
requires maintaining the vehicle pollution related laws as well as the transport laws. Hence, it is
necessary to deal with such regulatory factors to create the sustainable position. On the other
hand, maintaining the ecological forces also quite necessary in Australia. Retaining the natural
resources is one of the most important ecological attributes that the company needs to maintain
in Australia. This innovative app fulfills the demand of the social lifestyle, behaviour, and
preferences of the consumers. In discussing the technological force, it has been observed that
Ingogo management still needs to develop some of the wireless communication techniques by
using the Smartphone devices and several online facilities to structure a clear expansion strategy.
Detailed situation analysis also provides idea that Ingigo might face the direct
competition with Uber, which develops a proper assessment to understand the underlying
strength and weaknesses. Ingigo also needs to present the clear assessments based on this
competitor analysis. It is important for the company to understand the basic demands of the
stakeholders prior to develop any business strategy. In fact, the company might face challenges if
it fails to make any counter strategies to participate in a competitive scenario. A detailed project
planning and real opportunistic plans for providing commercial benefits to the stakeholders
would be helpful to develop the marketing activities. The fixed fare, safety measurement, easily
accessible booking facility, and trained professional drivers are the major strengths of Ingigo
(Ingogo.com.au, 2018). On the contrary, the highly competitive ambience and the limited market
penetration are considered to be the greater weaknesses of the company. The company might
even face the considerable threats due to the minimum profitability and too much dependency on
technology. However, the quick and easy payment process as well as the loyalty of the
consumers can be much opportunistic to establish the business in Australian market. The stable
political scenario in Australia is quite favorable for the business to ensure the sustainable growth.
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The higher level of economic opportunity in Australia is quite beneficial for the business. In fact,
the healthier social attribute is quite effective for providing the new offers in future. The
company is using the innovative app to book the cab that opens new business opportunity to
make the business more cost-effective. However, the company needs to develop more fruitful
strategies to maintain the environmental sustainability.
3. Discussion
a) Problem Statement
In keeping pace with the continuous growth in the economic zone, the Australians are
identifying opportunities to make the professional and personal growth. They often need to stay
away from their home and use taxis and cabs for their daily transportation (Aras et al., 2017). In
fact, they even prefer the idea of the innovative technologies that can make these demands easier
to get. Ingigo identifies such requirements of the daily commuters. Therefore, the company has
launched a business app through which the customers can book the cabs at any moment. In spite
of such technological innovations ad unique business ideas, the company needs to understand the
external market demands as well as the competition. This marketing plan is thus developed with
a clear focus of the objectives and necessary segmentation to make this business quite
opportunistic and profitable.
b) Discussion of the Potential Market Segment
The major focus of the business is to make the daily transportation available to the
customers with the preferable, easier, and innovative solutions. In Australia, people are quite
occupied with their busy lives and identifying the quicker way to travel without the hazards
(Sinapuelas, Wang & Bohlmann, 2015). This innovative app provides the customers opportunity
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to book cab at any point of time. Moreover, the customers are even more likely using their
mobile device and digital mediums to make quick contacts. This innovative app is quite
beneficial in making the cab booking purposes more frequent and easier. The demands of market
to access the innovative digital technologies are quite favorable for the businesses (Zheng et al.,
2015). However, the direct market competition with Uber is quite challenging for the business.
The business thus needs to develop more suitable and easy-to-access technologies would attract
more number of customers.
c) Discussion of the Target Market and Positioning
The business is mainly targeting the business officials who take taxi for their daily
commutes. In addition to this, the target market eve includes young college or university goers as
well as the old age customers as well. The tech-savvy people would be much interested in
accessing this app whenever they need any transportation. In order to live the faster live, they
usually take the support of the digital means. Hence, the business can target these specific
customers segments for this cab booking app.
Uber app has the dominant market in this industry. It assesses the internal strength and
weakness and identifies the external threats and opportunities to structure the business functions.
Ingigo also requires concentrating on the target market segments and the market competition to
develop the position of the business. Both the urban and rural areas would be targeted from
where people can get the easy access to the internet to book the app. The middle class and upper
middle class customers would be targeted for availing such cabs as per their convenience.
4. Marketing and Financial Objectives
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a) Marketing Objectives and Goals
Ingigo Company is looking forward to create the strong position in online cab booking
market in Australia. Considering the market competition the company will look forward to
achieve these three marketing objectives.
To establish the digital communication for the promotional aspects after service
To acquire a strong market base within the next 6 months of launching the service
To develop the greater brand image my offering suitable discounts in the first right of the
cab
SMART Objectives
S-Specific The objectives are specific because these determine
the clear focus of the services offered by Ingigo
M-Measurable The objectives are measurable because these
concentrate on measuring the responses of the
target customers.
A-Attainable These objectives are attainable because the
promotional mediums are quite cost effective
R-Real These objectives are real because the business has
the fruitful opportunities to grow in the Australian
market
T-Time Bound The objectives are time bound because these are
expected to achieve within 6 months.
Table 1: SMART Objectives
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b) Financial Objectives and Goals
Identifying the market opportunities, the business requires developing the appropriate
financial objectives in a much specific way. It has been observed that the identified market
segment is quite favorable for the business to grow. Based on such opportunity, the following
financial objectives can be determined.
To achieve 10% of the total benefits in the first year of this service
To offer 50% discounts in every first right of the user
To estimate 50% of the profit return on investment in the first year of the service
These specific financial objectives depend on the appropriate budget allocation on the
promotional strategy of the business. It would create awareness among the users and ensure the
high profits in future.
5. Marketing Mix Strategy
Marketing mix strategy is developed to influence consumer purchase behaviour to avail
any particular product or service that is new to market. Marketing mix helps in placing the right
product in a proper place within a stipulated time by scheduling the correct price (Schivinski &
Dabrowski, 2015). Ingigo Company also requires developing the concerns regarding the price,
promotion, product, and the place while introducing this cab booking service to the Australian
customers (Ingogo.com.au, 2018). Based on such observation the appropriate marketing strategy
will be developed by the company.
a) Marketing Mix
Product
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Selecting the right product or service is the first element of Marketing Mix. According to
Ganapathy (2017), it is necessary to understand the right product or service that can attract a
larger number of consumers. Similarly, Ingigo is introducing the online cab booking app for the
business professionals in Australia, who prefer taxi for their daily commutes. The service would
be easily accessible through their mobile devices. The online app receives the request for free
taxi booking services for the customers through innovative technique is quite appreciable since
they try to get easier and quicker access to their daily commutes (Kumar & Kumar, 2016). The
GPS enabled cab booking system offer free flat reasonable rates for each ride. Guaranteed
commutes will be provided to the customers. The passengers would receive the facility to earn
extra points if the driver fails to reach to the location within the scheduled time after the booking
is done. This service develops the various initiatives, business opportunities, identifies the
probable limitations, and ensures the scope of growth for the future prospects.
Place
Business marketers need to identify the right place where the target customers would be more
interested in availing the product or services (Nath et al., 2017). In order to offer this instant taxi
booking service, the company needs to target the urban, rural, and office areas where the location
tracking would be easier. The customers can book the taxi by surfing the app and suggest the
suitable location to the drivers to pick up and drop.
Price
Structuring the appropriate pricing strategy is another most important element of marketing
mix. It is essential for the business to identify the competitive pricing strategy that would attract
the users and make profits as well. Ingigo has set the fixed price rates for the taxi rides, which is
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quite beneficial for the business. However, in order to spread more brand awareness and develop
the promotions, the company can offer free discounts to the first ride of the users. It would be
effective enough to attract the riders towards the service.
Promotions
Promotional process is a key to develop brand awareness in a competitive market. It is
important to identify the appropriate promotional technique that can help in attracting customers
towards availing the service of products. Similarly, Ingigo can adopt the social media
promotional strategy to make people aware of this instant taxi booking app. the promotions
through digital communication, such as TV radio as well as the online medium would be much
helpful in such context. Using social media for the promotional tool would help the company to
acquire more customer base in a cost effective way. Apart from this, the company can even use
pay per click advertising, public relations, and ‘word of mouth’ for attracting more customers
towards availing this service (Westwood, 2016). However, it is necessary to develop the
attractive contents the influence the positive state of mind of the target customers. A well-
informed website would be helpful to make the customers easier to book the cab and customize
their searches.
b) Marketing Strategy Implementation
After observing the market opportunities, it is essential to identify the appropriate
marketing strategy that can ensure more benefits for the company. Ingigo can develop several
specific marketing strategies, which would be quite beneficial for the users as well. The users
can get more points if the drivers fail to reach to the location at the right time. These points
would be added as the discount prices while availing the taxi facilities. Another strategy can be
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MARKETING MANAGEMENT AND DIGITAL COMMUNICATION
implemented to develop more customer base. The company can provide the referral bonus to the
customers who will invite others to install the app and book the cab. The destination of the user
should be customized as per their convenience (Motala, 2016). The user can lodge a complaint or
share their feedback through online sources. It would generate the sense of Reliability which is
beneficial for the company for the long run.
6. Budget Allocation for Promotion Mix
Ingigo requires concentrating on the appropriate elements for promoting the services. The
budget allocated for the promotional process is structured below:
Elements Budget (Assumed)
Website creation A$2000
App building with customized search options A$1000
GPS setting A$1500
Software Installation A$2500
Customer care executives A$2000
pay per click advertising (PPA) installation A$2500
Total A$11,500
Table 2: Budget for Promotion Mix
(Source: Created by the Author)
7. Conclusion
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MARKETING MANAGEMENT AND DIGITAL COMMUNICATION
The study develops a clear and concise marketing plan for Ingigo online cab booking
services. This innovative ideas implemented by the company by considering the requirements of
the instant cab booking in a faster way and using the mobile devices. The company is targeting
business professionals, young college and university goers, and old people, who are more likely
using taxis for their daily commutes. The identified situation for the business market ensure that
the targeted customers like to get quick access to the taxi facilities since they are quite busy in
their professional or education and lives. The company faces direct competition with Uber,
which has established their dominant position in the Australian market. However, developing a
complete assessment helped the business in identifying the appropriate market segment and
positioning to develop strengthened position in this competitive Australian market. This
marketing plan develops a structured marketing mix, which helps in preparing the appropriate
marketing strategies for the business. Implementation of these marketing strategies would help
the business together more customers towards availing this service. Offering more discounts and
innovative use of the technological act would help the company together more responses from
the customers. Finally, the appropriate budget allocation is providing the insight about the capital
resources that are needed to be invested for the promotional purposes.
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References
Aras, M., Syam, H., Jasruddin, J., Akib, H., & Haris, H. (2017, July). The Effect of Service
Marketing Mix on Consumer Decision Making. In International Conference on
Education, Science, Art and Technology (pp. 108-112).
Ganapathy, V. (2017). Urban mobility in the era of sharing economy: An empirical study of
Smartphone app based Ride sourcing services. Journal of Global Economy, 13(4), 268-
289.
Grubb, B. (2014). Taxi app Ingogo pulls online receipts after customer shows how thousands
can be accessed. Available from https://www.smh.com.au/technology/taxi-app-ingogo-
pulls online-receipts-after-customer-shows-how-thousands-can-be-accessed-20140506-
zr5fj.html Accessed on 14 May 2018.
Hanssens, D. M., Pauwels, K. H., Srinivasan, S., Vanhuele, M., & Yildirim, G. (2014).
Consumer attitude metrics for guiding marketing mix decisions. Marketing
Science, 33(4), 534-550.
Huang, R., & Sarigöllü, E. (2014). How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-
132). Springer, New York, NY.
Ingogo.com.au, (2018). 8 Reasons to Choose Ingogo for Business Taxi Booking. Available from
https://www.ingogo.com.au/blog/8-reasons-use-ingogo-business-taxi-booking/ Accessed
on 14 May 2018.
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MARKETING MANAGEMENT AND DIGITAL COMMUNICATION
Ingogo.com.au, (2018). Why Ingogo Fixed Fares are Your Best Option for Taxi
Travel. Available from https://www.ingogo.com.au/blog/ingogo-fixed-fares-best-option-
taxi-travel/ Accessed on 14 May 2018.
Kumar, P. K., & Kumar, N. R. (2016). A Study on Factors Influencing the Consumers in
Selection of Cab Services. International Journal of Social Science and Humanities
Research, 4(3), 558-560.
Motala, M. (2016). The" Taxi Cab Problem" Revisited: Law and Ubernomics in the Sharing
Economy. Banking & Finance Law Review, 31(3), 467.
Nath, A., Khandelwal, A., Kanojia, A., Minocha, I., & Niyogi, R. (2017, August). Design and
implementation of an intelligent cab service system. In Contemporary Computing (IC3),
2017 Tenth International Conference on (pp. 1-6). IEEE.
Schivinski, B., & Dabrowski, D. (2015). The impact of brand communication on brand equity
through Facebook. Journal of Research in Interactive Marketing, 9(1), 31-53.
Siguaw, J. A., & Simpson, P. M. (2015). A marketing plan for marketing instruction: A satirical
look at student comments. In Creating and Delivering Value in Marketing (pp. 129-133).
Springer, Cham.
Sinapuelas, I. C. S., Wang, H. M. D., & Bohlmann, J. D. (2015). The interplay of innovation,
brand, and marketing mix variables in line extensions. Journal of the Academy of
Marketing Science, 43(5), 558-573.
Westwood, J. (2016). How to write a marketing plan. Kogan Page Publishers.
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Zheng, X., Cheung, C. M., Lee, M. K., & Liang, L. (2015). Building brand loyalty through user
engagement in online brand communities in social networking sites. Information
Technology & People, 28(1), 90-106.
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