This report describes about the various marketing essentials of TK-MAXX which is an American apparel and home good companies which adopts lots of marketing plans for their successful sustenance in the local as well as new market. The report depicts about role of marketing in the organisation and its significance with the other departments of Tk-Maxx. Importance of various marketing mix has been discussed. Also evaluation of key concepts of process of marketing has been done to know the key role of these concepts for facilitating the process of sales of their product. Several tactics has also been discussed which are adopted to accomplish the goals. (Babin and Zikmund, 2015).
a. Role and responsibilities of marketing functions Of TK-MAX company
The marketing department of TK-MAX company play essential role in promoting the store which provides different products and services across the world. Cited firm sells its products and services through distribution channel , it is refer to the deciding the goods or services sells to the people who want to buy them. Distribution can be easy as setting up small shops, malls in the party of a city where its targets customer. Through marketing company becomes able to enhances its sales volume and raising its profitability. Marketing function of TK-MAX takes responsibilities for managing their store's brand and conducting campaign. They promote their product through their brand name, attractive packaging, create the material that describe and upgrade core products or services. TK-MAX responsible for not only earn profit while they providing customer satisfactions also and their employees need to understand the company values, its goal and its priorities. They increase their sale and expand their business through effective advertising and maintaining the relationships with target customers. TK-MAX main objective is to increase their productivity. For that cited firm's marketing function conducts market research and understand needs of consumers. This helps in transferring, exchange movement of goods with the clients (Baker, 2016.).
Marketing is helpful in raising and maintaining the stranded of living in their community. They responsible major marketing functions are buying , selling, financing, transport, warehousing, risk bearing and maintaining the standardisations in different activities which is performed by a large numbers individuals. This company performed all the marketing functions is all important because it is only the way which is related to the generate revenue and income and bring in profit. They take a risk for high return and making a better decision for long term run their business.
b. Roles &Responsibility of Marketing in Organisational Sector
Targets and opportunities can be achieve only by marketing research and helps to understand how the product of TK Max products and services are perceived. It helps in Promotion of core products and services of company product and keeping theme up to date. TK Max company create a material which promote the product of company.
Increase in sales revenue of company is only be increased if the marketing management is efficient, continuous marketing is there in the organisation. Advertising of product is only be done by efficient marketing strategies. Proper introduction is given to customers with the help of media, that is on television, on internet, etc. Overlook on vendors and outsiders is another role of marketing, the marketing materials and marketing support provided by agencies for example web providers,agencies,expert etc.
Internal communication is also be completed only with the help of marketing, as employees ned to know the Company,its background, its values, polices ,rules which is only be done by efficient marking management.
Company's Website should be maintain as in today's era,most of the work, information is collected by internet, so marketing management should maintain and update all the information timely on company website (Cant and Wiid, 2016). Supports in Modifying the product for TK Max company according to customers expectation, any loopholes in the product which is not satisfying customers wants should be remove. With the changes in the products timely the market share is maintain. It helps in maintain customers relationship for TK MAX by organising campaigns and loyalty programmes by which customers feedback can be taken and determining the best potential need of customers. Measuring the Competitor strength prevailing in market, what degree of substitute of product is available in competition with our company's product.
c. Roles & Responsibility of Marketing in Marketing Sectors
First of all the future existence, profit,image,strength of TK Max company is wholly or partially depend on internal and external factors of environment. Marketing management first analysis all the factors affecting the marketing environment. Customers need is the key factor of marketing environment , marketing manager firstly analysis the customer wants that what customer need after analysing, design the product according the needs. Introducing Innovation techniques should be develop by marketing manager, by which the product of TK Max company should not be outdated. Prompt decision should be their to face any challenges comes in the marketing environment,as market scenario is both changing and challenging, so constantly monitoring and studying the factors the decision is taken as fast as possible by TK Max Company (Hughes, 2017).Anticipation of threats is also a important role of marketing manager, by which TK Max can scan the threats which can be come in future. Company should posses the powers to fight and solve the threats.
Internal factors which can be control by the organisation itself, should always be screen and problems of employees, workers should be known and solve. By monitoring the internal factors timely, TK Max company can up-skill the staff of the organisation.
Creating customers satisfaction and feedback is very necessary for organisation as customers are given utmost importance so customers value,satisfaction to the product is a key factor in the TK Max Company.
d. Significance of interrelationship between marketing and other functional units
Marketing is an important activity for every business which helps in the identification of products which are potentially successful and helps to promote these as well. There are different functional units in TK-MAX as well that are inter related with the marketing department. Marketing functional unit is a part of this organisation which is also connected with other departments. It can be explained as functions of marketing are backed up by various operational departments for effective performance.
Inter relation with financial department can be defined as TK-MAX always require to plot a plan and implement that marketing plan which requires a lot of funding, it is decided by the financial department where different finance employees prepare a budget plan and to identify sources for funding and how to distribute in it different activities of marketing plan so that each works effectively and provide the best result (Kapferer, 2017).
When marketing department decides the sales and promotional plan for implementation it requires employees, size of the plan decides the number of employees where human resource departments comes in a role. It decides the number of employees to be hired for the project or particular activity and put the right kind of candidate at appropriate place on best suitable time. It also make sure of optimum utilisation of resources.
Also production department plays an important role where it facilitates marketing department by providing a communication process with logistics which would help them in their fulfilment of demand and supply of their products and services (Singh, 2018).
e. Evaluation of key elements of marketing functions
Concept of Production
This concept is basically dependent on the consumer's perception, which describes that consumers are attracted towards products which are in abundant quantities and are available in low prices. Thus, TK-MAX should increase the rate of production (Lusch and Vargo, S.L,2014).
Concept of product
Consumers prefer those products which follows an innovative approach, have value for money and is good in quality aspects. This concept shows that retaining of customers can be done through providing that kind of services and products which are beneficial for them.
Concept of Selling
Modern customers have that kind of mindset which are attracted to product by promotions. Consumers focuses on those products or services which have great promotion in markets.
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This concepts depicts the need of focus on the target consumers for the deliver of products and services. Also for facing the competitive market ,TK-MAX has to deliver a product of better value and quality in their stores. There is a need to enhance the brand value of organisational needs that is needed to be better so that it can create a good connection with customers who are targeted. When brand value becomes better it makes customer to use that particular brand over other competitors in the market. It also includes that various promotional activities should be kept in focus that plays an in immense role in different areas and helps to promote the product (Malhotra and et.al. 2015).
Societal Marketing Concept
Different societies has different beliefs which affects the marketing process. These belief creates a difference in needs, wants and desires of the consumers. So, various marketing plans are adopted according to societies for making it a successful concept in that particular market for opening up of stores.
1. Comparison of application of marketing mix to the marketing process for achievement of the objectives
Marketing mix has an important process in the procedure of marketing planning for achieving organisational goals and objectives. TK-MAX uses different methods for applying marketing mix in their organisation. It is mostly based on the demographics of marketing aspects of products and services of their company which includes its and market size basically. Market mix is considered as a tool which is helps marketer for better understanding of the products. Marketing mix involves the concept of 4 P's which includes product, price, place, and promotion and it was further extended to 7 P's which includes product, price,place, promotion,people, process and physical evidence.
The application of marketing mix has concern over these concepts which includes having focus on the dimensions of products which includes every aspects related to product such as its appearance,innovation, consumer base,production and all other factors that builds up a product as overall; place of selling products also act as a crucial factor because there is always a difference in sales among regions due to many reasons therefore one has to seek all the factors which influences their sales at particular area;pricing structure also plays an important role because TK-MAX uses different pricing strategy for their products like for entering in new market where they can implement low pricing and skimming pricing according to consumers; promotional practices plays an important role for every store as they may be new to market and need a good recognition for sustenance; people includes those customers which are being targeted for their stores; process may involves the working structure of the store how it has been structured and what is the processing and physical evidence includes making their services into a kind of appearance to the customers which can comprise of looks of a store, uniforms of employees, etc (McDonald and Wilson, 2016)
The marketing mix of the company has made to successfully established their marketing plan in the particular area with the effective promotional techniques. The marketing mix has lead the organisation to focus on the product and also its features that should satisfy the need of every customers while providing unique attributes which differentiation it from other rival. The product should be made with respect to the particular geographical area of the market because their are many aspects which are associated with concept as markets which are very distant requires a lot of transportation cost which affects the price of the product and customers are unfortunately price sensitive.
2. Evaluation of different tactics for achievement of business objectives of TK-MAX
Being a business organisation TK-MAX has a different culture and they apply different tactics for achieving their business goals. They utilises market segmentation process for the same vision. Firstly they prefer to define a market which is apparel market, secondly it involves creating segments of market where they decide to target every gender and age group which is further followed by the evaluation of each segments and process for segments are constructed. Then 7 P's are implemented which includes:
They sell apparels and home ware products in their store and also provides delivery of their products. their product has very differentiated features which makes them different from rivals
Price of their products have been confined into a range from lowest to highest that targets every type of customers. Pricing strategy is very appropriate according to various segments of the customers as they are very sensitive related tp pricing aspects of the products.
They have covered every areas of city and has opened different chains of their store brand across the country.
They have promoted their stores through advertisement and different promotional mix which helps them to promote their brand in a new market (Pooler, 2018).
It includes the way of service which their stores delivers. It can include process or structure of working and also. How their stores have been organised for customers of different gender and age groups.
It includes the delivering of services to customers in their stores. How their stores are managed and what is the feature that creates a difference among their competitors.
People includes the employees of the store , how they tackle customers and provides services.
Current market situation analysis
It includes structure analysis of current market and company's function for acknowledgement of shortcomings which can further be overcome by them. For this purpose one uses PESTEL and SWOT analysis
Creating objectives and strategies
It includes the company concern which includes maintaining market and brand value for a good growth, implementation of plans for redressing customers. Strategies are planned structure for the processes which are followed to accomplish the objectives.
Tk Max company has some strong powers which keep it ahead from other competitors in the market. Stable economic growth is the first point of Tk Max. Company has recorded remarkable figure-Sales revenue In 2011 is $1.9billion. In 2014 the fiscal year company recorded $2.4billion, which represent 6% from 2013. TK Max is a strong brand in fashion world which achieve dominance in the market, is the very strong points of TK Max.
The global presence is not enough compared to competitors. The brand name is not use by the company, and the image of market outside and penetration in many countries is not there in TK Max products. The unauthorised intrusion in computer system is the main problem of TK Max in past times.
Chance of increasing the number of product by companies excellence portfolio.
Home bases products should be increase.
Small branches should be develop in US.
Customer oriented services.
Elaborate the business
Strict government policies.
New entrance of competitors.
Increase in transportation expense.
PESTLE Analysis Oo TK MAX
To analysis of company's trends critically, various techniques has been used, PESTLE ANALYSIS is among them. In global market the goods are extremely challenging. Political,economic technical, ecological and legal environmental challenges that TK Max has to overcome.
Scanning of organisational external micro environment is PESTLE Analysis. Economic rates, inflation rates growth rates, exchange rates are the main factors which has major impact on the decision making of TK Max Company.
Tk Max is largely affected by political factors which are strict government policies, Tk max is following laws, and company faces the upcoming legislations. Political factor add risk factor and lead to major loss.
Tk Max is also following economic factor like labour cost,interest rates, government policy, taxes, Recession, Inflation, Demand/Supply, Management. Tk Max is taking in consideration various factors in account to determine the current and expected value of investment portfolio of company.
Management of technology(MOT) is such a approach which control the technical changes and Tk Max is following this technique. Implementing advanced technology to improve the product timely is a technical factor. Tk Max is controlling the technical factor to its great extent. Without taking these factor into consideration, Tk Max cannot survive in the market.
Tk Max is working legally in the market, following all the rules of social,political and many other factors. All the rules regarding working conditions impose by government is taking a serious matter without ignoring. The attitude of government towards the business, business trends etc. all are the factors which Tk Max is taking in consideration.
Segmentation, targeting and positioning
In segmentation one segments customers into different groups which have homogeneous features and the segment which is selected is known to be targeted on which full concentration is done, where positioning is define as creating the image of the products in the minds of customers.
It involves the practical implementation of the theoretical plan which includes eliminating all flaws which occurs and restricts its implementation. It helps to decide a standard required for the plan and to work accordingly.
2. Detailed coherent evidence based -marketing plan
The main marketing tactics that can be used are:
- Entity promotion in colleges, corporate houses etc. through various campaigns such as sponsoring events, organising conferences and roadshows that promote their stores in the city.
- Opting for advertising through posters and banners which can be placed on moving vehicles or at highways such that it reaches to mass.
- Providing 5% discount on the services for first time customers which is used as a sales promotion techniques to increase their sales.
- Opting for Television ads that can be shown on prime time, this broadcasting technique has an approach towards mass of people.
- Involving with the customers through direct mails.
Marketing Objectives and Planned Strategies
Increasing the revenue as compared to the last year by 5%.
Providing education and training to employees
Developing marketing strategies to attract maximum number of customers.
Increasing the profits by 10% year by year
Increasing customer base by 10% every year by adopting effective strategies for promotion.
3. Strategic marketing plan that applies 7P's
The 7P's are product, price, place, promotions, process, people and physical evidences.
Here, TK-MAX provides product like apparels and home goods to the customer along with home delivery services. They are providing highly fashioned clothing line to the customers.
Pricing strategy of company varies as they have range of prices from high to low that targets customers of different economic status and is affordable by every customer.
This company has expanded its stores across different countries and has decided to cover more in future.
Their are certain promotional activities which are chosen by organisation to promote their brand which includes promoting in colleges and certain corporate houses along with promoting on TV and radios.
People includes various employees which are engaged in the store and how their duties are being distributed and what is the direction of command.
Here the organisation uses divisions in their store for different segments of customers which save their time and makes shopping easier.
They have decided a particular structure and ambience of the store for every branch and informs and the way of delivering the services are similar.
It has been concluded that this company uses 7P's which are product, price, place, promotions, process, people and physical evidences for an effective marketing plan. Along with the great inter relationship of marketing department with others has made its working very efficient. Application of marketing mix played an important role to increase their sale in the particular area and also to compete with other competitors to sustain in the market.
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