Table of Contents
Executive Summary
All Pumps Sales and Service is the leading specialist pump supplier to the manufacturing industry; providing a vast range of locally manufactured and globally obtained pumping. All Pumps new venture is the ‘All Pumps App 2019’- an online platform which permits customers to have information on their on-site resources and an easy access for repairs, additional parts and any extant maintenance. This report will serve to highlight the current target market of All Pumps, the effect globalisation has had on the current marketing management, ethical behaviour and government regulations in the new venture, and the recommendation of marketing strategies for the new venture; thus, achieving its marketing objectives- increasing market share and customer stickiness.
Target Market of All Pumps
All Pumps Sales and Service founded in 1960, is at the forefront of the pump industry with statistic. The demographic market of All Pumps is any manufacturing plant that requires the movement of fluids, that comprise of more than 20 pumps or a revenue of more than $100. This market segmentation approach is effective, as it enables All Pumps to use its marketing resources more efficiently- not wasting time selling and marketing to smaller customers; who provide small sales. Yet, with this new platform being rolled out, it enables All Pumps to target smaller plants with fewer than 20 pumps; which aids them to win 100% of the market. The geographic target market is any manufacturing plant situated in NSW and QLD where the movement of liquids and gases are used in the manufacturing process.
By focusing on two states in Australia, it enables All Pumps to win 100% of the market in both NSW and QLD. All Pumps targets its products based on benefit segmentation, which is done on the basis of the dissimilar benefits perceived by diverse consumers. Certain consumers perceive a fair/ discounted price as a benefit; so certain products are targeted at this group such as the ‘All Pumps App’ which is free of charge. The other benefit that All Pumps consumers perceive is efficiency. The App saves time for consumers, thus making it a benefit- permitting All Pumps to target that particular segmentation. All Pumps deals with client’s behavioural point of view- saving time and cost on maintenance- thus, fulfilling the needs of customers; which in turn amplifies customer loyalty.
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How Globalisation has affected the current marketing management of All Pumps
Australia’s proximity to Asia poses a high risk to All Pumps, as products can be manufactured and imported to Australia at lower prices. All Pumps managing director Cameron Hales states- “A risk is that clients may set up buying routes and purchase direct from the manufacturer”. This affects All Pumps marketing, as they have to alter their marketing and appeal to consumers that buying off them is the most effective choice- a strategy to combat this risk is the All Pumps App. All Pumps staff use this as a tool to persuade customers to purchase their pumps as there is more advantages, than purchasing from the manufacturer. Another factor is Donald Trump’s policies and tariffs have caused dumping in Australia, thus All Pumps competitors are actively selling products at a cheaper price- affecting All Pumps vision statement- ‘being the leader in the supply of pumps.’ To combat this risk the All Pumps app is an effective strategy which gives All Pumps an advantage over their competitors, permitting them to achieve their marketing objectives.
All Pumps App Ethical behaviour and Government regulations
Ethical behaviours and government regulations that the All Pumps App has deliberated include; truth and accuracy in advertising, and refunds and exchanges. An example of truth in the advertising of this App is the cost- The ‘All Pump app is free of charge’. This statement is correct, society may believe that there is a loophole; yet All Pumps have ethically marketed this App saying it’s free of charge, but the service isn’t. This improves business reputation, as All Pumps isn’t marketing practises which include untruths due to concealed facts, thus attracting customers and future investors- leading to an increase in profit.
The Competition and Consumer Act 2010 states there should be no contradictory fine print- the All Pumps App abides by this- it provides no obligation to purchase additional products from the company, thus there is no minutiae or any loopholes that once the consumer has downloaded the App they have to purchase a product. This stimulates ethical trading and benefits consumers and businesses alike. The interconnection between government regulations and ethical behaviours is strong, as they both are divulging truth, and there is no ambiguity in the marketing of the ‘All Pumps App 2019’. Thus, it increases consumer loyalty and trust in All Pump, aiding them to achieve their marketing objectives.
New Marketing Strategies for All Pumps App
Ultimately, in order for All Pumps to increase their market share and augment customer success, they must aim to build up marketing and promotion and process on the All Pumps app in their target market, and boost employees morale.
People
A strategy that All Pumps could implement is monetary rewards to employees- ‘provide a monthly bonus to top five employees who cause the most active users to join the Site Service data base program.’ This incentive scheme will boost productivity, supplying employees with a goal to work towards causing them to introduce the app to clients- acquiring greater market share. As its been proven that a “properly structured incentive program can increase employee performance by as much as 44%”.
Process
An additional strategy approach that could be added to the process is ‘Electronic Direct Mail’ (EDM) Marketing. However, All Pumps have used this previously, so they should send out a mass email that’s short and personal- which highlights the key features about the App. This informal email will appeal to the maintenance staff of the manufacturing plant, as its disparate from formal marketing emails- enticing the market to try this new venture. As it states- “Emails with personalised subject lines generate 50% higher open rates”.
Promotion
A supplementary marketing strategy that All Pumps would benefit from, ensuring the App is successful is the implementation of ‘coupons’. If All Pumps uses coupons such as- ‘A 35% discount on a product of their choice if they download and use the App’. This will encourage trial use for this new venture, which will increase sales from not only existing but new customers, enabling All Pumps to attain their marketing objectives. As it has been said- “90% of adult consumers said they are influenced by promotions in terms of the amount they spend and the items they purchase”.
Recommendations
Statistics reveal that more than 70% of new products launched on the market fail in the first year of operation, mainly as a result of poor marketing. This is highlighting that marketing can be the driving force behind All Pumps success, boosting profits and sales. All Pumps needs to continue to target its market effectively using market segmentation, be aware of how globalisation is affecting marketing and have strategies to combat these risks and continue to be ethical and abide by government regulations. Ultimately, I would advise All Pumps to implement monetary rewards to their employees, add EDM’s to their process, and finally apply the idea of coupons in order to increase their market share and augment customer success.
