Cycles, Inc. Marketing Report: Pinarello Distribution in London

Desklib provides past papers and solved assignments. This report analyzes marketing strategies for Pinarello bicycle distribution in London.

Marketing Essentials
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Table of Contents
Introduction...............................................................................................................................3
Task 1.........................................................................................................................................4
Reference list..........................................................................................................................10
Task 3.......................................................................................................................................11
Conclusion...............................................................................................................................20
Reference List.........................................................................................................................21
Appendix.................................................................................................................................22
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Introduction
Marketing is regarded as one of the most effective activity, set of instructions as well as
procedures for communicating, creating, exchanging and delivering offers, which have
value for consumers, partners, clients and community at large. In modern competitive
market, marketing is the main weapon that is used through business ventures to grab
attention of customers and enhancing sales revenues. In simple words, the essence of
marketing is an exchange or transaction intended for satisfying customers’ wants and
needs. Business venture from all sectors use different but effective marketing tactics and
strategies for bringing a revolutionary success in sales revenues.
“Pinarello” is one of the most popular bicycle manufacturer companies since 1952 in
Italy that also uses effective marketing strategy. This study will outline the significance
and effectiveness of marketing manager’s role in an organization. Additionally, structure
of marketing department and overview of the marketing process will be evaluated in this
the study.
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Task 1
Explain the role of marketing as a function of business, opposed to marketing as a
department in a company.
Marketing is a vast chapter that most of entrepreneurs spend their entire life to
understand. However, this marketing process is separated into two different segments:
B2B marketing and B2C marketing. Both of the tactics are effective and business
ventures select one out of these two tactics based on their requirements.
B2C marketing refers to strategies and tactics in which an organization promotes its
goods and services to individual customers: manufacturing, promoting and selling
products and services for consumers for using in their daily lives (Iankova et al., 2018).
For an instance, “Pinarello” is one of the leading bicycle manufacturer firms that use the
B2C marketing tactics for influencing their sales revenue.
B2B marketing is another important consideration in business that simply refers to the
best practises and techniques used through the organizations with services and products
sold to other businesses (Cortez and Johnston, 2017). The success of B2B marketing
does not come from broadcasting a product over television or radio. Companies use B2B
marketing techniques for gaining competitive advantages in current market place. This
allows businesses sustaining more effectively.
Marketing management is the process of managing the exhaustive business activities of
an organization (Bagozzi et al., 2018). The department is responsible for influencing
customers to purchase products. The role of marketing as function of business is as
follows:
Setting marketing objectives
Every business venture has its clear, smart and achievable goals and objectives.
Marketing objectives refers to the goals, which an organization wishes for achieving
through its marketing (Pride and Ferrell, 2016). Based on the type of marketing,
objectives can be short-term or long-term. This is possible to achieve the organizational
marketing objectives through proper management of marketing.
Planning
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After the setting of goals, formulating road map is important that would be followed for
accomplishing these objectives. Marketing department plays the most important role to
prepare the most effective and suitable planning for competition in the market with other
rival competitors.
Staffing
It is the process of hiring the skilled and required personnel for packing the positions in
the firms. Skilled workers are designated in that position wherein they actually best fit in
so that they can perform better and raise the sales revenue simultaneously (Sawyer,
2015). Thus, companies including “Pinarello” consider marketing as an important
function of business.
Figure 1: Functions of marketing
(Source: Bagozzi et al., 2018)
Research
Marketing department is liable for conducting the most authentic market research that
includes all the details of the target audience and business market environment. They pay
attention to the buying trends to understand the customer purchasing behaviour in proper
manner.
Transportation
The transportation of goods is an additional function of marketing. Once an organization
has the goods, the organization must have the capability of distributing them to
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Marketing Head
Social media
Manager
Chief marketing
Officer
Marketing Manager
Content DeveloperGraphic design
control Manager
Marketing Technical
Head
SEO developer
Social media
Content Developer
Sales Executive
Officer
Sales team
customers. However, the way of delivering products directly affect over the marketing
campaigns
Another important consideration is outsourcing marketing that is the art of handling
upon a company’s exhaustive marketing demands to a complete third party. This
provides several effective benefits to business ventures such as increased expertise,
appropriate research, and reduced media cost, objectivity and others that influence
business organizations like Pinarello to reach a new level of success in business. .
Explain the structure of the marketing department of your selected organisation,
and succinctly explain a minimum of two different marketing roles (e.g. Chief
Marketing Officer, Marketing Manager, and the Social Media Manager).
Figure 2: Structure of marketing department of Pinarello
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(Source: Created by learner)
From the above diagram, this is clear that Pinarello has several designations within the
exhaustive marketing department. There are chief marketing officer, marketing manager,
social media manager and other personnel; those have different important roles within
the organization (Piercy, 2014).
Chief marketing officer of Pinarello has the responsibility of overseeing the planning,
development and execution of advertising and marketing initiatives of the firm. In order
to meet the organizational sales targets, the CMO of the Pinarellom ensures that the
message of the organization is distributed throughout different channels. Additionally,
CMO is responsible for managing the complexity of the exhaustive marketing activities
(Homburg et al., 2014).
Social media manager is another important designation in Pinarello. The social media
manager simply maintains all the social media activities of the marketing department of
Pinarello. They manage social media marketing campaigns as well as they create, curate
and manage the exhaustive published content (Felix et al., 2017). They are responsible
for the management of day-to-day contents throughout the websites and several social
media channels. They conduct social advertising to promote content.
Provide an overview of the marketing process, and analyse the importance of the
marketing environment to the marketing function.
Marketing process of Pinarello is divided into four segments that are situational
analysis, marketing strategy, marketing mix decision and implementation & control. All
these steps are important for successful completion of the marketing process.
Situational analysis
Situational analysis refers to collection of processes, which managers mainly use for
analysing internal and external environment of an organization for understanding the
capabilities, consumer base and business environment of the company. This mainly
focuses upon identifying opportunities for satisfying the unfulfilled consumer demands.
However, this is important that situation analysis must include past, current and a future
aspect to understand its own capabilities in which it is operating. Many times, PESTEL
and SWOT analysis are conducted for proper analysis of the business situation.
Marketing strategy
This is possible to design a marketing strategy, once the best opportunities have
identified for satisfying unfulfilled consumer needs and demands. Marketing strategy
involves market segmentation that is the process of dividing potential consumers into
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segments or groups relied upon several characteristics (Baker, 2014). Companies
segment their market and customer base to understand and meet the expectations of the
customers effectively. Geographic, psychographic, demographic and behavioural
segmentation are all regarded as important in making any marketing strategy. Company
mainly segment customers those have similar traits and demands for meeting their
demands more effectively.
Target market selection
This refers to selection of a broad range of customers those actually targeted by the
organization. Organization works, develops and manufactures products and services to
attract those targeted customer first. So that those targeted customers will show more
interest in purchasing products from that firm. Pinarello has divided their target market
strategies into five effective stages including single segment, selective specialization,
market specialization, and full market coverage and product specialization (Buerki et al.,
2014).
Marketing mix decisions
Marketing mix allows creating the right marketing strategy so that business
organizations can better meet their sales target. There are 4ps and 7ps marketing
strategies are available in current market to understand the actual business condition of a
business location.
Implementation and control
This is the last and most important stage, where all the strategies are implemented and
controlled by the marketing department. Marketing head or chief marketing officer of
organizations like Pinarello has the responsibility of implementing, managing and
controlling all marketing processes.
Marketing environment is another important consideration that is actually the
combination of external and internal factors as well as forces that affect the ability of the
company for establishing the relationship along with serve its consumers. External
environment includes customers, suppliers and others, where internal environment
includes workers, owners, materials, machines and others. All these factors are important
for successfully conducting business and marketing activities.
Analyse how the marketing function influences and interrelates with other
departments in the organisation (a minimum of 2 departments).
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In an organization, apart from the marketing department, there is also production
department, human resource department, IT department, operation department, finance
department those are influenced by marketing functions.
Marketing and HR department
The human resource department always improves the productivity and accuracy of any
department as well as also assists any department to gather experience by training
sessions. HR department plays the most crucial role in hiring the most eligible
candidates those can support the company to face various organizational challenges.
Marketing department consult with HR department before making any promotional
activity (Giannakis and Harker, 2014). Both HR and marketing department work together
for benefiting the company. Sales and marketing department is trained by the HR
department and HR department provides them the proper direction to meet their sales
target.
Marketing department and IT department
Both of the marketing department and IT department are interrelated with each other. For
marketing, IT is extremely helpful in several fields; data base development and CRM,
website development, product enhancements, data analysis, marketing automation and
others. Additionally, IT department maintains all the promotional activities that are
conducted in different social media platforms (Feng et al., 2015). Additionally, IT
department assists marketing department to maintain web contents, SEO writing,
websites development and other IT solutions. Depending on marketing functions, IT
department sets all processes and conducts social media campaigns and promotions as
well.
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Reference list
Bagozzi, R.P., Rosa, J.A., Celly, K.S. and Coronel, F., 2018. Marketing-Management.
Walter de Gruyter GmbH & Co KG.
Baker, M.J., 2014. Marketing strategy and management. Macmillan International Higher
Education.
Buerki, T., Nandialath, A., Mohan, R. and Lizardi, S., 2014. International market
selection criteria for emerging markets. IUP Journal of Business Strategy, 11(4).
Cortez, R.M. and Johnston, W.J., 2017. The future of B2B marketing theory: A historical
and prospective analysis. Industrial Marketing Management, 66, pp.90-102.
Felix, R., Rauschnabel, P.A. and Hinsch, C., 2017. Elements of strategic social media
marketing: A holistic framework. Journal of Business Research, 70, pp.118-126.
Feng, H., Morgan, N.A. and Rego, L.L., 2015. Marketing department power and firm
performance. Journal of Marketing, 79(5), pp.1-20.
Giannakis, D. and Harker, M.J., 2014. Strategic alignment between relationship
marketing and human resource management in financial services organizations. Journal
of Strategic Marketing, 22(5), pp.396-419.
Homburg, C., Hahn, A., Bornemann, T. and Sandner, P., 2014. The role of chief
marketing officers for venture capital funding: endowing new ventures with marketing
legitimacy. Journal of Marketing Research, 51(5), pp.625-644.
Iankova, S., Davies, I., Archer-Brown, C., Marder, B. and Yau, A., 2018. A comparison
of social media marketing between B2B, B2C and mixed business models. Industrial
Marketing Management.
Kozlenkova, I.V., Hult, G.T.M., Lund, D.J., Mena, J.A. and Kekec, P., 2015. The role of
marketing channels in supply chain management. Journal of Retailing, 91(4), pp.586-
609.
Piercy, N., 2014. Marketing Organisation (RLE Marketing). Routledge.
Pride, W.M. and Ferrell, O.C., 2016. Foundations of marketing. Cengage Learning.
Sawyer, T.Y., 2015. The Staffing Model: Make the Most of Human Resources. In
Financial Modeling for Business Owners and Entrepreneurs (pp. 57-81). Apress,
Berkeley, CA.
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Introduction
In this task, a new business will be started. This business will have required making a
marketing plan, which will be presented to the bank, which has been chosen. For the
selected business, theories of internal and external theories will be implemented and an
implementation plan will be created.
Task 3
Background of the business and rationale why the business will succeed
Cycles, Inc. is a newly incorporated distributor of roadside bicycles. The company
specialises in providing Pinarello bicycles at a discounted rate. Cycles, Inc. had
approached standard chartered Bank for a small business loan to establish its enterprise.
Cycles, Inc. plans to situated business in London because it is difficult to find Pinarello
bicycles in the area. Cycles, Inc. will be providing a product, which is unavailable in the
London market, chances of acceptance, is higher. Pinarello is a worldwide-recognised
cycle manufacturer and the fact that Cycles, Inc. is will able to provide its product at a
discounted rate will give it a higher edge in the market.
Overview of the macro environment and potential strengths and weaknesses of your
business (use adequate frameworks such as PESTEL and SWOT Analysis)
Particular Explanation
Political Ever since the occurrence of Brexit there has been a high level of
turmoil within the political environment of the United Kingdom
(Clarke et al., 2017). Political parties like English Democrats,
Community Action Party, Democratic Labour Party and others are in a
constant state of confusion and debate as to where they will take their
political causes. With the increasing amount of terrorist attacks within
the United Kingdom, as there rise in terrorist groups like Al-Qaeda.
This leads to the political decisions makers of the United Kingdom to
have an unfavourable relationship with other countries which harms
and import and export trading.
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Economic The aftermath of Brexit has played an integral part in the way trade
takes place within the United Kingdom (Hobolt, 2016). Currently the
import and export of cycles is more difficult than it used to be, since
there are a higher number of charges involved. Additionally, the
foreign direct investment rates have risen and this allows Cycle, Inc. to
raise more funds from the financial market.
Social With the rise in social media such as Facebook, Twitter, and other
websites, the focus of businesses and consumers have shifted (Perrin,
2015). Interaction as a whole now has moved from face to face to
online interface. People and now more likely to buy products from
online chains then offline ones since they have the opportunity to
discuss with their friends online as well as get online reviews. This
information is key to Cycles, Inc. as they can move towards
establishing an online presence that will give them higher reach and
audience.
Technological Right now with technology Cycles, Inc. has more chances of
establishing a low pricing logistics pathway (Christopher, 2016). With
vehicles becoming more cheaper and navigation systems becoming
better. There is higher chances of easier delivery implementation with
in the United Kingdom. Using websites and other forms of channels
online, intermediary stores can be eliminated and higher costs can be
saved.
Legal With the implementation of regulations such as The Employment Act,
Competition Act, and others, Cycles, Inc. and other businesses output
in a position to follow these laws (Freedland et al., 2016). The
employment act mandates that businesses employ a certain number of
employees within their stores. Similarly, the competition act dictates
that businesses such as Cycles, Inc. can only deploy a certain number
of stores within a given area. Both of these laws have a positive as
well as negative effect on the profit rate of the company as expenses
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