Professional Documents
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proposed architecture of its system for the enhancement of the Colleges image and
competitiveness.
By
Shoko Ignatius
A project submitted in partial fulfilment of the requirements for the Executive Certificate in
Business Marketing
University of Zimbabwe
November 2013
Table of Contents
EXECUTIVE SUMMARY .................................................................................................................. 4
1.0 Introduction ..................................................................................................................................... 5
1.1 Who is Trust Academy College?................................................................................................ 5
3.0 Trust Academys current Vision ................................................................................................... 9
4.0 Organizational core values ........................................................................................................... 10
5.0 Marketing objectives .................................................................................................................... 11
5.1 Marketing organization ............................................................................................................ 11
5.2 Marketing systems .................................................................................................................... 12
5.3 Marketing productivity ............................................................................................................ 12
5.4 Marketing function ................................................................................................................... 12
5.5 Pricing objectives ...................................................................................................................... 12
6.0 Marketing Strategies .................................................................................................................... 13
6.1 Recommended methods of segmenting the business tuition market. ................................... 14
6.2 Targeting.................................................................................................................................... 15
6.3 Positioning ................................................................................................................................. 15
6.4 Recommended Differentiation Strategy.................................................................................. 17
6.5 Growth strategies ...................................................................................................................... 18
6.6 Marketing Mix Strategies......................................................................................................... 19
6.6.1 Recommended Product Objectives: ................................................................................. 20
6.6.2 Recommended Price objectives: ....................................................................................... 20
6.6.3 Recommended Place objectives: ....................................................................................... 20
6.6.4 Recommended Promotional objectives: ........................................................................... 21
6.6.5 Recommended Promotional mix options to be used by Trust Academy....................... 21
6.7 Recommended people management skills: ............................................................................. 25
6.7.1 Recommended processes techniques: ............................................................................... 26
6.7.2 Physical evidence: .............................................................................................................. 26
7.0 Budget ............................................................................................................................................ 26
8.0 Implementation plan ..................................................................................................................... 28
8.1 Recommended key strategy implementation factors for Trust Academy ........................... 28
8.1.1 Strategy ............................................................................................................................... 28
8.1.2 Culture ................................................................................................................................ 29
8.1.3 Systems ................................................................................................................................ 29
8.1.4 Skills and staff .................................................................................................................... 29
9.0 Organizational structure .............................................................................................................. 29
10.0 Evaluation and Control .............................................................................................................. 31
11. 0 SWOT analysis for Trust Academy ......................................................................................... 32
12.0 Conclusion and final remarks .................................................................................................... 34
BIBLIOGRAPHY ............................................................................................................................... 34
EXECUTIVE SUMMARY
The existence of both registered and unregistered private Colleges offering business tuition
services in and around the central business district of Harare has taken competition for clients
to a new a high level. The level of competition amongst Private Colleges is cut-Throat to the
extent that an organization cannot consistently and successfully operate without a proper
marketing department.
Trust Academys marketing functions are being handled by individuals without proper
marketing backgrounds and who already are burdened by none marketing tasks which they are
adequately qualified and trained to execute. Trust Academy therefore has no recognized
marketing department that oversees the Colleges marketing functions. A marketing department
will give leverage to Trust Academy against its competitors which include Speciss College,
Denmark College, Herentals College, Open Learning Centre and many other registered and
unregistered Colleges.
Kotler (2004, pg 63) identified that a marketing management system is primarily made up of
four major components which are the marketing information system, marketing planning
system, marketing control system and the new product development system. The same author
suggested that organisations must be able to sufficiently address the questions below:
Trust Academy is a customer oriented organisation that offers quality academic, professional,
continuous development programmes and services that enhance the personal growth, career
development and corporate performance of our customers. The College commits itself to
delivering high standards of education and training through provision of quality methods of
instruction, human, technological and related support resources, positively contribute to
economic development and improved standard of living.
Kotler (2004, pg 41) further states that A clear mission statement acts as an invisible hand that
guides people in the organization. A market oriented mission statement defines the business
in terms of satisfying basic customer needs. Generic statements like the one of Trust Academy
sound good but provide little real guidance and inspiration.
Clear mission statements play an important part in helping to frame marketing strategies. If
Trust Academy is to competently market itself as a College, Poorly or wrongly defined mission
statements can create strategic limitations which may result in loss of competitiveness and
failure.
Trust Academys mission statement lacks a clearly defined competitive strategy as the
Colleges competitive position is not specific although the distinctive competences are
well outlined and they include quality methods of instruction in terms of appropriate
human, technological and related support resources.
The mission statement lacks a clearly defined competitive strategy as the Colleges
competitive position is not specific although its distinctive competences are well
outlined and they include quality methods of instruction in terms of appropriate human,
technological and related support resources.
Drummond at.al (2002, pg 128) suggests that The mission of the organization is the unique
purpose that distinguishes it from other companies and defines the boundaries of its
operations. In order for Trust Academys mission to be unique, it must take into consideration
of corporate governance, stakeholders, business ethics and the Colleges context as illustrated
by Johnson and Scholes (2002) below.
Influences on an organizations mission and objectives
Source: Johnson and Scholes (1999) Adapted from Drummond at.al (2002, pg 128)
According to CIM professional diploma in marketing study text (2012, pg 30) A vision is a
picture of the organisation in the future, perhaps five years ahead. Wilson and Gilligan
(2005) suggest that visioning has been most successful where there has been clarity of
managerial thinking in areas, including:
The size of the organization, business unit or brand in three to ten years time
The corporate and brand values that will be developed
The nature of the customer base and the customer segments that will be served
How these customers should perceive the organization or brand
The geographic coverage that will have been achieved
The overall position within the market and the competitive stance
The links with other organizations.
Hamel and Prahalad (1989) have discussed vision in terms of a strategic intent. They have
defined strategic intent as involving the following:
Trust Academy strives to be recognized by 2016 as a provider of the best quality business
tuition in locally and internationally recognized diploma and degree qualifications in
Zimbabwe at affordable prices.
Organizations are now including statements on organizational values in their annual reports
and other literature. The organizations aims and aspirations are the results of a series of
influences. Johnson et al. (2005) identified the following core values, corporate governance,
stakeholders, business ethics and cultural context.
In developing Trust Academys mission and vision, there is a need to understand both the
Colleges competencies and the future likely changes in the environment. There is a need to
understand the organisational values. Values relate to the Colleges culture and the beliefs that
are embedded within the College.
Using the SMART framework Drummond and Ensor (2005, pg 256), the marketing
objectives of Trust Academy are overly not good as they are not (SMART) specific,
measurable, attainable, and actionable although a lesser extent good as they are resourced.
Marketing objectives give any organization a sense of purpose, target and direction, hence
Trust Academys marketing management system is inadequate without (SMART) objectives.
Trust Academy College must set marketing objectives increase market share, enlarge overall
market or improve the Colleges profitability as highlighted by Blyth and Megicks (2019, pg
35).
Trust Academy lacks a proper marketing department and therefore the College lacks
well defined marketing functions within its structure. The College will therefore do well
by adding a marketing department within its organizational structure.
5.2 Marketing systems
The marketing information is not readily accessible and updated since Trust Academy
lacks a proper marketing department. Trust Academy must collect and organize
marketing information in a systematic manner as data like the Colleges market share,
marketing budget, Colleges business performance or historical data on revenue trends
is essential for any marketing management system.
Trust Academy is providing tuition for local professional examination boards Southern
Africa Institute of Marketing (SAIM) and Southern Africa Association of Accountants
(SAAA) which are not profitable as they have a very low student enrolment averaging
two students per six month semester. Trust Academy must regularly and systematically
adopt a marketing productivity analysis. This ensures that unprofitable business units
are eliminated and profitability maintained, which is essentially a key component of
any marketing management system.
The product line objectives of Trust Academy are hinged on the organization offering
all professional business professional courses available. This is disastrous as the
Colleges usually ends up maintaining unprofitable business courses and therefore
resulting in the College failing to adequately satisfy its clients.
The pricing objectives of Trust Academy are hinged on charging penetrative prices on
both local and international business courses tuition. The College must maintain its
pricing system as increases in the tuition fees may result in significant loss of clients
since there are many competing Colleges. At the same time Trust Academy must
constantly monitor and review competitor prices as a means of benchmarking.
6.0 Marketing Strategies
The basis of marketing strategy Source: Adopted from Drummond (2002, pg 11)
Kotler and Armstrong (2004) suggest that A marketing strategy is the marketing logic
whereby the company hopes to achieve its marketing objectives. It consists of specific
strategies for target markets, positioning, the marketing mix, and marketing expenditure
levels. According to Kotler and Armstrong (2004, pg239), Market segmentation- dividing a
market into smaller groups of buyers with distinctive needs, characteristics, or behaviors who
might require separate products or marketing mixes. The company identifies different ways
to segment the market and develops profiles of the resulting market segments. The second
step is target marketing-evaluating each market segments attractiveness and selecting one or
more of the market segments to enter. The third step is market positioning-setting the
competitive positioning for the product and creating a detailed marketing mix. Lancaster
et.al (2005) suggests that the bases used for segmentation should lead to segments that are,
measurability, accessibility, substantiality and meaningfulness.
Any meaningful marketing management system must have a clear business strategy.
This strategy must be primarily based on the concepts of segmentation, targeting and
positioning. Trust Academy has no documented framework addressing such a
business position. Trust Academy needs to effectively segment and target the market
and finally create a well-defined position in the minds of the clients seeking business
tuition service.
Segment Characteristics
Recent high school Seeking recognized qualifications equivalent to
leavers university business degrees.
Usually dependent on parents or guardians for tuition
fees.
The segment has a high potential for growth since the
withdrawal of study grants by the government of
Zimbabwe in 2008. More high school leavers seeking
alternative tuition in locally and internationally
recognized qualifications which are shorter and
flexible to study.
Working class Seeking qualifications in order to get promoted at the
work place or for career change.
Limited but stable disposable income due to unstable
economic environment.
This segment is the major stable source of clients for
the business tuition services for private Colleges as it
makes up the vast enrolment of the clients in the
business tuition services for private Colleges.
Education level This market is made up of individuals without high
school certificates, with (high school certificates,
business diplomas, degrees, or post graduate
qualifications).
Income The segment is made up of following income earners,
less than$350, $350-$600, $600-$1000 and more than
$1000.
Segmenting on the bases of income can be misleading
since at least 70% of the Zimbabwean economically
active population is not formally employed.
6.2 Targeting
Kotler and Armstrong (2004, pg 251) suggest After evaluating different segments, the
company must now decide which and how many segments it will target. A target market
consists of a set of buyers who share common needs or characteristics that the company decides
to save. Moore and Pareek (2006, pg142) say Choosing your target market is the process of
evaluating each segments attractiveness and choosing which one or ones to go for.
Trust Academy needs to adopt the differentiated target marketing policy. The recent
high school leavers and the working class segments are seeking recognized, flexible,
quality and affordable tuition but what Trust Academy will differentiate is the
promotional activities. This involves providing the same business tuition service to both
the working class and recent high school leavers.
6.3 Positioning
Kotler and Armstrong (2004) define Product position as The way the product is defined by
consumers on important attributes-the place the product occupies in consumers minds relative
to competitor products.
Influence on Positioning Source: Adapted from Wilson and Gilligan (2005, pg 354)
Characteristics of the markets current and desired perception of the market on Trust
Academys business tuition service
Trust academy is recognized for quality tuition at affordable fees. This characteristic
must be maintained in order for the College to ensure client loyalty; failure to achieve
this will result in losing clients to competitors. At the same time such recognition should
extend to the recent high school leavers who are going to be the major source of growth
and potential increase in market share.
Trust Academy is recognized for offering tuition for locally and internationally
recognized business qualifications, delivered by qualified and experienced Tutors. This
characteristic is to be maintained in the minds of the current and potential clients and is
to be reinforced in the Colleges promotional activities. Such a position gives the
College an appeal of uniqueness and distinguishes it from most competitors. At the
same time being recognized for offering locally and internationally recognized
qualifications will accommodate clients of varied financial backgrounds.
Recommended Trust Academys proposed market position
Differentiation: Kotler and Armstrong (2004) suggest that Differentiation: Here the company
concentrates on creating a highly differentiated product line and marketing program so that it
comes across as a class leader in the industry. Most customers would prefer to own this brand
if its price is not too high.
Growth strategies are a key component in any marketing management system. Trust
Academy currently does not have documented growth strategies. These growth strategies
may be in the form of Trust Academy offering existing business tuition service to existing
market, offering existing tuition service to new markets, offering new business tuition service
to existing markets or offering new business tuition service to new markets.
Ansoff matrix: Source CIM Professional Diploma in Marketing MMP Text (2012, pg118)
Trust Academy will emphasis its marketing efforts on the market penetration and market
development strategies:
(a) Market penetration ( Offering tuition for existing business tuition service to
existing markets)
Trust Academy will aim to maintain its current customers by improving client
relationship marketing.
By continuing to promote the colleges offering to the working class who are not our
clients and attempting to gain clients from competitors by emphasizing Trust
Academys unique services.
(b) Market development ( Offering existing business tuition service to a new market)
Trust Academy to promote its tuition services to the recently emerging market segment
of recent high school leavers which may help to increase the colleges market share.
This will reduce the Colleges dependency on its current clients who are the working
class.
NB. These two market segments have a low risk due to the fact that the college has experience
in servicing these clients.
Marketing mix strategies are a key component for a proper marketing management system.
Trust Academy College has no document marketing mix strategies. If Trust Academy is to
maintain its profitable position, then it must officially have documented marketing mix
strategies.
The business tuition service courses to be trimmed and all unprofitable courses be
eliminated.
Jain (2006, pg 499) states Recent work in the area of marketing strategy has delineated the
importance of market share as a key variable in strategy formulation. Assuming the
market is price sensitive, it is desirable to develop the market as early as possible. One way of
achieving this is to reduce price.
Trust Academy will continue charging penetrative prices for its tuition services. Trust
Academy has low operating costs as compared to its rivals since it owns the College
premises as opposed to renting. At the same time all the Colleges business Tutors are
part time, resulting in Trust Academy paying less employee benefit.
Trust Academy to continue offering its business tuition services at its present physical
premises. The Colleges premise has got convenient parking space for our clients and
the premise is located away from the central business district with a quiet learning
environment.
6.6.4 Recommended Promotional objectives:
Kotler and Armstrong (2004, pg 58) say Promotion means activities that communicate the
merits of the product and persuade target customers to buy it.
Trust academy will need to target the recent high school leavers and the working class
with relevant and timely promotional messages in order to increase its market share.
Working class.
The message to emphasis on brand positioning of Trust Academys service in terms of:
College to advertise in major local newspapers, The Herald and Sunday Mail.
Below the line:
A good marketing management system must always have techniques and methods of
measuring the level of success and effectiveness of it promotional activities. Trust
Academy has no official methods of an analysis and the table below highlights
recommended methods of promotional activities measurement.
Recommended result measurement of Promotional activities
All of the business department staff members to be given a highly interactive 4 hour
course on basic customer care. This is vital since business tuition service is inseparable
to its providers.
Tutors to come for lectures in a presentable manner, well prepared for classes and assist
clients as far as possible and be presentable since Services cannot be separated from
their providers Kotler and Armstrong (2009, pg 220).
6.7.1 Recommended processes techniques:
Trust academy needs not to make any changes to the Colleges logo.
The business staff will be encouraged to put on the branded college t-shirts on Fridays.
Sufficient space should be created for the easy maneuvering of clients at the College
premise.
7.0 Budget
CIM Managing Marketing Text (2002, pg 253) states that A budget is a statement of desired
performance expressed in financial terms. A budget is a plan of what the organization is
aiming to achieve and what it has set as a target. Drummond at.al (2001, pg 277) suggest that
The process of strategic development and budgeting are intrinsically linked. To be blunt; no
budget equals no strategy! The budgeting process translates marketing strategy into financial
terms which, whether we like it or not, are the way all plans are expressed, evaluated and
controlled.
Any proper marketing management system must have a marketing budget. The
allocation of funds to marketing causes must be planned and consistent, Trust Academy
lacks a proper and consistent marketing budget.
Budgeting ensures that Trust Academy sets financial targets and aims to achieve them.
Allows proper financial resource allocation for example the exact fee to be allocated to
the external consultant who will assist it designing the organogram.
Profitability forecasts, this is vital since one of the major goals of Trust Academy is to
a profit. A budget gives Trust Academy a platform to make a profit prediction.
Year
Marketing Expenses 2014 2015 2016
US$ US$ US$
Press Advertising xxxxx xxxxx xxxxx
Publicity xxxx xxxx xxxx
Fliers and brochures xxxx xxxx xxxx
Development of mktIS xxxx -
Conduction of internal awareness survey xxx xxx xxx
External organisational structure consultant fee xxxx
Total Marketing Expenses xxxxx xxxx xxxxx
Kotler and Armstrong (2004, pg 59) say Marketing implementation is the process that turns
marketing plans into marketing actions in order to accomplish strategic marketing objectives.
Implementation involves the day to day, month to month activities and effectively put the
marketing plan to work, implementation addresses the who, where, and how.
Source: CIM MMP Professional Diploma in Marketing Study text (2012, pg 175)
8.1.1 Strategy
8.1.3 Systems
A viable MIS system will ensure that Trust Academy has a good knowledge of the
clients needs, wants and expectations.
The College can improve its customer feedback and therefore enhance customer
relationship marketing.
Trust Academy would be able to track any market trends and competitor developments.
Issues
According to CIM MMP Professional Diploma in Marketing Study Text (2012, pg 177)
Control: This is simply making sure what should happen actually happen. The basic approach
is to monitor and compare with some predetermined standard (a feedback loop) and take action
if required. The business plan, the marketing plan, the budget or monthly targets frequently
used as targets. Ferrell and Hartline (2011, pg 54) say The basic tenet of the balanced
performance scorecard is that firms can achieve better performance if they align their strategic
efforts by approaching strategy from four complementary perspectives: financial, customer,
internal process, and learning and growth. The financial perspective is the traditional view of
strategy and performance. This perspective is vital but should be balanced by the other
components of the scorecard.
The Balanced Performance Scorecard Source: (Boston, MA: Harvard Business School Press,
2001) Adapted from Ferrell and Hartline (2011, pg 54)
Evaluation and control is primarily hinged on ensuring that marketing management
systems are consistent with the forecasted direction. If deviations arise from the set
standards, then pre-set corrective measures must always be in place before hand. The
evaluation and control standards must therefore be based on financial, customer,
internal process, and learning and growth.
Element relevance
Management Marketing Plan Reviews Constant and periodic Management
reviews of the activities of the Marketing
Plan will ensure that element like trust
Academys promotional activities and
departmental expenses are within the
marketing budget.
Constant and consistent Marketing Plan
reviews will ensure that there is well
defined distribution of accountability,
monitoring and setting of timed periods of
execution of set marketing objectives
within Trust Academy College.
Balanced score card This tool is going to be used in evaluating
and controlling the performance of Trust
academys marketing plan activities
together with constant and thorough
Management reviews.
Opportunities Threats
State managed university Existence of unregistered
education has become expensive private colleges offering business
for many recent school leavers as diploma tuition.
the government of Zimbabwe has New private colleges entering
withdrawn tertiary education market is low.
grants.
Entry requirements to the
traditional state managed
universities are too high for most
high school leavers hence private
college tuition qualifications are
very good substitutes in not
better.
State managed university
education is not flexible in
comparison to private college
tuition programs provided by
Trust Academy which are flexible
to the working class and recent
high school leavers who need to
pursue their tertiary education by
means of part time study but at
the same time are employed in
industry.
High current demand for business
tuition.
Zimbabweans are willing to invest
in business, related education
provided its affordable.
Economic stability since the
adoption of the US$ as temporal
currency, this could mean better
planning and budgeting.
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