Managerial Use Of Marketing Financial Metrics – Discussion

Purpose of the report

Discuss About The Managerial Use Of Marketing Financial Metrics.

The changes that are planned by the organizations are based on the strategies and their implementation based on the needs of the organization to modify in the market. Modifications in the market are characterized by the demand of the customer sand the manner in which the organizations utilize the strategies to place their products where the target customers can be reached. The report states the situation of an organization, Mobike, and the manner in which the organization can make use of the strategies to determine their objectives of reaching out their products to the target customers in the market. The determination of the needs of the customers and the analysis of the micro and macro environments of the organizations facilitates the effectiveness of the strategies. The strategies depend on the situation of the organization in the market.  

The report is aimed at understanding the various aspects of the change planned by the business Mobike and the manner in which the strategies are compatible with the circumstances faced by the business in the market.  The key elements of the report depends on the understanding of the strategies that are planned by the business firms while reaching out their products to the potential customers in the market and thereby determine the effectiveness of the strategies that are formed by the organization.

The marketing objective of the business firm is dependent on the acceptance of various factors that affects the availability of the products in the markets. The marketing objectives of businesses depend on the objective of the businesses to grow in the international markets. Alternatively, the minimization of risks and uncertainties are again another consideration that is undertaken by the organization to bring in alteration sin the functioning of the business.

• Major objective of the organization is to expand overseas which will be helping the company with various opportunities in the international markets.
• Value proposition to the customers based on the analysis of their needs
• Minimization of risks while making the product available in the market

The organization, Mobike, was found in the year 2015 and since then it expanded its business in more than 190 cities of 11 countries around the world. The company is recognized to be one of the largest and the fastest evolving bicycle company that aims at delivering the proper value to the customers. the goal of the organization is based on making the city life more comfortable for the people living in the region through the continuous innovation  that is taken by the business in their product quality and marketing. The major aspects of the changes are dependent on the analysis of customer needs that are facilitated by the firm through the utilization of various AI technologies., it helps the organization in making continuous innovation in the products and the services. On the other hand, the company is aiming at expanding its market in the different other cities which will help the organization in reaching out to the targeted potential customers in the market.

Marketing Objectives

The company has gained its place from the proper functioning of the rights in the public bicycle project bidding in the Gold Coast. The proper functioning of the organization has helped in its expansion in the Australian markets. The strategies have helped the organization to set their functions to comply with the goals of the business to expand in the market.

The major objectives of the organization depend on the understanding of needs of businesses to bring changes in the market. Alternatively, the needs of the business are dependent on the objective of the same to bring in expansion in its processes in the international markets.

• The growth and the expansion of the business
• The identification of client’s needs
• The determination of the continuous innovation has helped businesses in improving the design of the business in the market.

The segmentation that is considered by the business depends on the demographic, socio- cultural and buying behavior of the people. The identification of the segmentation of the customers helps in smooth functioning of the organization as per the needs of the same in the market.

The users of the bike that is developed by the organization should be between 12 – 70 years of age. The determination of the age has facilitated the functionality of the organization as the color and the utility level is measured by the business based on the understanding the age of the customers. However, Generation Y whose age ranges from 24-38 year old and those who utilizes the apps from their androids are the frequent customers of the organization (Azzadina, Huda  & Sianipar,  2012). The identification of various ages of the customers facilitates the organization in determining the change in the structure and the functioning of the business in the market. It helps businesses in improving the line of products and services, which are dependent on the value that businesses seek to create.

On the other hand, the research that was undertaken by the organization enumerated that some two million Australians have less than $1,000 as their savings. Poor planning of the Australians has affected the purchasing capability of the people living in the region. It has affected the functioning of the organization in the Australian markets.  46 % of the Australians have stated that there are no savings undertaken by them as the weekly purchasing quota of the people goes up considerably (Londhe, 2014). It has affected the purchasing power of the people living in the region. On the other hands, it has resulted to the low functioning and sales of the organization in the market (Davari  & Strutton,  2014).

The organization is aimed at making their products available to the urban markets, which are densely populated with the potential customers. It has affected the functioning of the organization and has helped the same in making an increase in the sales of the same in the respective markets. The different aspect of change that is planned by the businesses is dependent on the accepting the requirements of the customers in market.

Current Situation

The target market of the organization depends on the youth and the manner in which it influences the demand for the products that are prepared by the business in the market. The key aspects of the transformation in the organization depend on the specific design for the bikes that is determined through the determination of the age and the race of the people. It depends on the culture of the customers and their health needs that the organization develops the bikes to suit the purposes of the people (Abe  & Pednault,  2013). The market share of the organization is based on the functioning of the business and the manner in which the market share can affect the demand for the goods in the market.

Figure 1: Market Share of Mobike

(Source: Mobike.com., 2018 )

The value, which is proposed by businesses depends on the acceptance of varied aspects of the modifications that are designed by the business to make the products compatible as per the needs of the people in the segmentation process (Hanssens et al., 2014). The changes in the systems of the business are based on the functionality of the same and the manner in which the value can be proposed to the customers determining the needs of the same. Positioning the product that is created by Mobike helps in determining the changes in systems and functioning of the business. Alternatively, the purpose of undertaking the modification depends on the analysis of needs of the organization to fulfill the objectives of growth and expansion in the respective markets (Beyda et al., 2012).

Mobike  has taken steps to understand the needs of the customers and thereby bring in changes in the technology of the bikes. For example, suppose a segment like the younger Generation Y is analyzed through survey for determining the needs of the same relating to the color and the functions that they require in their bikes. The introduction of new features in the bikes has helped in determining the modifications in functioning of the business resulting to its progression.

To Generation Y (Youth generation), E-bike is the brand of Mobike that creates hi-tech bikes because the company develops the AI technology that reads the human needs and the climate change. On the other hand, the tires and the gearbox of the bikes have helped in enhancing the experience of the people. The character of the brand focuses on the maintenance of the quality and the sustainability of the products in the adverse conditions.

Objectives

Marketing mix, designed by the business firms, is aimed at helping the same in bringing forth changes in the marketing strategies to fulfill the objectives of the business. The availability of the products and the basic functioning of the business is initiated through the marketing attributes and the value that is created by the manufacturing of the product as per the needs of the organization in the market. This section of the report determines the 4P’s of the organization, which helps in determining the availability of the product in the market as per the needs of the organization to sustain their business in the international markets (Mintz  & Currim,  2013).

Structure of the value that is created by the business firms can be divided in three parts- the bike, the online application and the maintenance of the same (Mobike.com., 2018). The integrated strategy of the organization has helped the same in determining the loyalty of the customers based on the different services that are provided by the organization. on the other hand, the determination of the needs of the customers and the environmental considerations has helped the business in designing the most effective designs for the bikes that are adaptable to the diverse climate and needs of the customers in Australia. It has helped in the expansion of the business in the market. The parts of the products are made easily available to the people of the region, as it will be helping the organization to bring in the loyalty and the trust of the customers in their favor. The different modification that is undertaken by the organizations is dependent on the functioning of the same in the markets. High-speed gearbox and the powerful braking system of the bikes have facilitated the functioning of the bikes as pr the needs of the customers in the Australian markets (Mobike.com., 2018). The determination of the varied needs of the customers has helped the business to plan its growth and development in the international markets.  

The users of the bike are required to pay an amount of $99 refundable deposit, which is based on the needs of the customer (Mobike.com., 2018). On the other hand, while undertaking the activities if the user violates any regulation relating to the bike, like damaging a part might affect the deposit money through deductions (Wheelen et al., 2017). The payment of the bills is based on the proper functioning of the bikes and the utility that is derived from the utilization of the same in the market. It has affected the value that that is proposed by the business to the customers. The customers can avail cards for utilizing the bikes at certain durations of time. It has helped in the effective and systematic performance of the business in the market.

Segmentation, Target Market And Positioning

The promotional strategy undertaken by the businesses is dependent on understanding the requirements of the firm to make its products available. The utilization of the online application has helped the organization in keeping the users aware of the recent updates and the up gradation that the organization is undertaking on the bikes to facilitate the needs of the clients. The online app has also helped the organization in adhering to the requirements of the consumers through their feedbacks on the services that are being provided by the organization. The feedbacks help the organizations in maintaining a steady growth of the organization. Alternatively, the organization has taken steps to launch their products through special ceremonies and events that help in portraying the skills and the functions of their bikes. The promotional technique helps the organization in maintaining a steady growth in the systems through the awareness that is created by the same in the market (Goetsch  & Davis,  2014).

The organization has taken steps to combine its activities with the Internet of Things (IoT) and online payment facilities for the sales, which has helped the organization in undertaking the distribution to different remote locations (Mobike.com., 2018). On the other hand, it has helped in determining the maximization of the sales in the organization, which has resulted to the smooth functioning of the business. The key elements of the transition that is undertaken by businesses depends on the determining the needs of the organization to make its alteration in the current market scenario (Hitt,  Ireland  & Hoskisson,  2012). The organization has taken steps to distribute its products to different cities based on the analysis of the needs of the people living in the same. As the organization started operating in Australia, the organization focused its functioning mainly on two cities, Sydney and gold coast and eventually aimed at expanding its services to the rest of the cities in the nation. It has helped the businesses in forging the transition in the performance of the same in the market. The population in the cities and demand for the goods helps the businesses in changing the performance of organizations resulting to the determination of chief points and channels through which the organization can undertake the distribution process.

Figure 2: Map of the places where the organization operates

(Source: Mobike.com., 2018)

Conclusion

Therefore, from the above analysis it can be stated that the organization, Mobike,   has taken steps to innovate in the systems of the business as per the needs of the customers. The situation of the organization and the analysis on the same has helped in determining the opportunities of the organization to grow in the international markets. Alternatively, the determination of the needs of the customers has helped in determining the varied modifications for making their product more sufficing for the customers in the market. the determination of the needs of the customers had helped the business in making their progress in the functioning of the same as per the needs of the same in the Australian market.

References

Abe, N., & Pednault, E. P. (2013). U.S. Patent No. 8,452,639. Washington, DC: U.S. Patent and Trademark Office.

Azzadina, I., Huda, A. N., & Sianipar, C. P. M. (2012). Understanding relationship between personality types, Marketing-mix factors, and purchasing decisions. Procedia-Social and Behavioral Sciences, 65, 352-357.

Beyda, G., Locker, D. J., Balasubramanian, K., McDonald, K. M., Wenger, A. E., & Wilson, J. G. (2012). U.S. Patent No. 8,150,732. Washington, DC: U.S. Patent and Trademark Office.

Davari, A., & Strutton, D. (2014). Marketing mix strategies for closing the gap between green consumers’ pro-environmental beliefs and behaviors. Journal of Strategic Marketing, 22(7), 563-586.

Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper Saddle River, NJ: pearson.

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.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.

Londhe, B. R. (2014). Marketing mix for next generation marketing. Procedia Economics and Finance, 11, 335-340.

Mintz, O., & Currim, I. S. (2013). What drives managerial use of marketing and financial metrics and does metric use affect performance of marketing-mix activities?. Journal of Marketing, 77(2), 17-40.

Mobike.com. (2018). The World’s First & Largest Smart Bike Share | Mobike. Mobike.com. Retrieved 17 April 2018, from https://mobike.com/global/ 

Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy. pearson.

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