bsbmkg501b presentation 6

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BSBMKG501BIDENTIFY AND EVALUATE MARKETING OPPORTUNITIES PRESENTATION 6

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PRESENTATION OUTLINE

At the end of this presentation you will know about:

• Making operational changes

• Servicing existing customers

• Communicate viability

• Document marketing opportunities

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MAKING OPERATIONAL CHANGES

• Whenever an organisation takes advantage of new market

opportunities some changes to its operation will be required.

These changes can be categorised under six main headings:

① Staff

② Work Practices

③ Premises

④ Equipment

⑤ Legal

⑥ Financial

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Staff

• New sales staff and new support staff may be needed to

accommodate the increase in sales and provide after sales service

• All staff will need to be trained to carry out their roles in the new

market

Work Practices

• Policies and procedures need to be reviewed to ensure that they

accommodate the new market and ew systems might need to be

adopted

Premises

• The organisation’s premises could need to be relocated, refurbished

or refitted

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Equipment

• New specialised equipment could be required

• General equipment which any organisation could need includes:

• Telephone systems

• Computer hardware and/or software

• Moto vehicles, such as a delivery vehicle for the restaurant

• Cash registers

• Forklifts and pallet trucks

• Packaging equipment

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MAKING OPERATIONAL CHANGESLegal

• New markets can make an organisation subject to legislation which had

not previously applied to its activities

• For example, an organisation which decided to sell its products to the

consumer market, after having sold exclusively to the business market,

would find itself subject to the consumer protection laws

• New markets could also be subject to new regulations or license

requirements

Financial

• An organisation may have to prepare detailed accurate documentation of

the expected financial impact of the new market opportunity.

• It could also have to change the way is manages its finances if the new

market needs different financial arrangements from the old one

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SERVICING EXISTING CUSTOMERS

• Whenever an organisation takes advantage of a new marketing

opportunity it must consider the impact this will have on its

current markets

• Customer service is one area where the impact can be significant

and therefore it needs careful planning and management

• The organisation must firstly define acceptable levels of customer

service and how these can be measured

• It must then document all of the factors which could affect service

to existing customers and make detailed plans to manage these

factors

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• Staff performance is the most important factor determining the

quality of customer service

• Increasing the market or entering a new one will impose extra

work loads onto an organisation’s staff

• If the extra load is significant this could cause a deterioration of

service to existing customers

• Performance is also affected by the training that staff have

received

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• Customer service depends on staff having the appropriate

equipment for existing and new markets

• New markets may require the adoption of new procedures, or

adaptation of existing procedures

• Financial (notably cash flow) issues can impact greatly on

customer service

• Organisations entering new markets need to ensure that they

have adequate cash reserves so as not be forced to reduce their

service to existing customers

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Estimating Resources

• When an organisation enters a new market it requires additional

resources and a reallocation of existing resources to open the

market and service it

• Resource requirements should be estimated based on:

• Knock on effects: the effects on other aspects of the

organisation’s business

• Time: the time taken to adjust to new resource requirements

• Logistics: how the changes can be implemented

• Cost

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Distribution Costs

• New markets can be new products, new geographical areas or new

methods of distribution, all of which will add to the organisation’s

distribution costs

• If an organisation’s new product is much larger/bulkier than its

current stock, then distribution of the new product will require

different methods of transportation and packaging

• Delivering goods into new geographic areas will also incur extra

distribution costs, especially if the new area is further from the

distribution point than the current markets

• Entering the online market could require new methods of

distribution and other resource, such as packing material

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Equipment

• Many new markets require new equipment

Production

• Manufacturers and fabricators may need new supplies of raw

materials and operators who had been trained to produce the new

products

Promotion

• Organisations must plan their promotional campaigns to suit their

own needs, culture and budget to ensure they have the resources

they need

Research and Development

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Research and Development

• Marketing opportunities need to be thoroughly researched to

establish their potential

• Organisations need to know what research resources they need

and whether they can conduct their own market research or have

to use market research organisations

• After a new market has been identified it needs to be developed,

especially for a new product

• Each market and each product have their own unique research and

development requirements and a significant amount of research

and development must be put towards identifying resource needs

of the new markets and developing these resources

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Re-Tooling

• Manufacturers who develop new products need to re-tool their

factories and need to budget for this when the organisation

develops the new market

• This can be a simple adjustment of current resources

• Entering a new market will alter an organisation’s requirement for

resource and these changes need to be estimated and budgeted

for whenever a new opportunity is being assessed

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COMMUNICATE VIABILITY• Once the viability of changing operations has been determined, the

nature and viability of the changes need to be communicated to key

stakeholders within the organisation

• Any viability will be assessed in terms of:

• Financial: the change must be able to produce a profit within an

acceptable time frame without dangerously reducing cash flow prior

to that time

• Physical: the physical resources such as suitable premises, adequate

equipment and suitable infrastructure must be available or obtainable

• Effects on other markets: the proposed changes should enhance or

at least cause no damage to the organisation’s existing viable

markets

• Effects on the overall operations of the organisation

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COMMUNICATE VIABILITY

• There is some risk in entering a new market and the opportunity

can only be viable if the benefits outweigh the risks

• One serious risk to implementing any change can be resistance by

people who are affected by it

• Many of the stakeholders do not want to know all the details of the

proposal and its viability. They simply want to be sure that the

appropriate personnel have assessed it thoroughly

• The offer of a full analysis is reassurance to these people that the

evidence is available

• This also enables the message to be kept short and simple,

increasing the chances of it being understood

• Those who want the details also have the option of seeing them

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• A key stakeholder is anyone who plays a part in implementing the

change or anyone whose function is affected by the change, and

can include:

• Board of Directors

• Finance Staff

• Human Resources Staff

• Managers

• Marketing Personnel

• The Owners

• Production Staff

• Supervisors

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• The viability of proposed changes to operations must be

determined and then communicated to all key stakeholders as the

success of the changes depends on their support

• The key stakeholders will not give the level of support needed

unless they clearly understand the benefits of the changes and

have confidence that that proposal has been properly assessed

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DOCUMENT MARKETING OPPORTUNITIES

• Changes which need to be made in response to new marketing

opportunities must be documented:

• To ensure that all changes, including knock on effects, are

identified and appropriate plans are made to manage them

• As a means of informing all personnel who need to know about

them

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PRESENTATION SUMMARY

Now that you have completed this presentation you will know about:

• Making operational changes

• Servicing existing customers

• Communicate viability

• Document marketing opportunities

bsbmkg501b presentation 6

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