Marketing Management Over the Last Several Years  Essay

  • Length: 5 pages
  • Sources: 1
  • Subject: Business
  • Type: Essay
  • Paper: #75059204

Excerpt from Essay :

Marketing Management

Over the last several years, consumers have been experiencing changing tastes and style. At the heart of these transformations, is a focus on using more traditional forms of artwork to decorate their homes and offices. In many cases, this involves the person buying a particular piece that appears to be authentic. The demand for these products has increased so much that a number of firms and competitors are entering the market. This has resulted in various fakes and knock offs that are sold to a host of unsuspecting consumers. ("Fe'nix del Sur," n.d.)

In the case of Fe'nix del Sur, the company has a long history of working with Native Americans and other tribes around the globe to address these issues. At first, this helped the firm to become one of the premier organizations for buying authentic art work. However, the increasing demand for various pieces around the globe has caused the company to rethink this strategy. What they have been doing, is to hire craftsman who can create works that look so similar to the original. Yet, only collectors and other experts can tell the difference. The impact is that more competitors have been following their lead and are trying to flood the market. ("Fe'nix del Sur," n.d.)

Recently, a large chains store has contacted the company about selling some of their different pieces inside the various locations. What they are looking for are various works that are similar to the originals. However, they are not considered to be authentic (as it would require an expert to determine this). This is causing Fe'nix del Sur to go through a number of challenges. As the firm, can stick with their original strategy and focus on delivering real pieces or they can begin selling customized works to the chain store. ("Fe'nix del Sur," n.d.)

The problem is that if the company were to engage in these transactions, it will change the business model (by concentrating on these areas over original pieces). This could hurt their reputation and it will require retooling to meet the constant demands of new cliental. The big challenge is determining if this kind of approach is economically viable for the firm over the long-term. To achieve these objectives there will be a focus on: the problem, the marketing decisions, possible alternatives, conducting an analysis of these choices and examining the pros / cons of the decision. Together, these elements will highlight the effect of this decision on the entire organization. ("Fe'nix del Sur," n.d.)

Problem Definition

Like what stated previously, Fe'nix del Sur is focusing on shifting their product lines to less authentic works. This is troubling, as the firm could see an increase their bottom line results from the transaction. However, the business model and traditional customer base will change. ("Fe'nix del Sur," n.d.)

Product, Price, Place and Promotion Marketing Decision to be made

To effectively market itself, the firm must show that they are focusing on both segments. This can be accomplished by creating a division that is concentrating on continually serving conventional customers. At the same time, a new segment can be created that will expand recently created works and distribute them directly to retail outlets. If this were to occur, it would help the company meet the needs of different cliental and maintain their core customer base. The combination of these factors ensures that Fe'nix del Sur is creating a unique marketing approach that is adapting to the changing needs of consumers. ("Fe'nix del Sur," n.d.)

Statement of Alternatives

An alternative strategy is for the firm to focus on a number of different areas to include: selling exclusively to traditional cliental, adjusting the strategy for large mass merchandisers / customers and selling their different masks directly over the Internet. As far as selling to traditional cliental is concerned, this approach will allow the firm to protect its brand image and reputation. The adjusting of the strategy for larger corporate customers, is switching the focus of the firm to meet the demands of new clients. While selling directly over the Internet, is going around these firms by offering various products to their customers. These different alternatives will have an impact on the direction of the company and its long-term profit margins. ("Fe'nix del Sur," n.d.)

Analysis of Alternatives

The alternatives are demonstrating how Fe'nix del Sur could face more challenges in the future. This is because each approach is not addressing customer demands. Instead, it is holding onto strategies that worked in the past (which is hurting a larger base of cliental). In the case of failing to address customer demand, this will occur with the company continuing to sell exclusively to traditional clients. This will hurt the firm's ability to compete by not dealing with the changing needs from the marketplace. Over the course of time, this can create a situation where these organizations could take critical market share from the firm. This will result in negative impacts on their earnings and ability to protect the quality of pieces that are sold. When this happens, there is the possibility that this will adversely affect the financial position of Fe'nix del Sur. As result, the firm needs to be actively involved in order to market to this segment of new customers. Otherwise, it is only a matter of time, until the company will begin to experience declining sales and less dominance inside the sector from these activities. ("Fe'nix del Sur," n.d.)

The second alterative, is switching from the traditional strategy and to begin marketing directly to large retail customers. This will change the business model by focusing on pieces that are not considered to be authentic. In the short to medium term, this will lead to an increase in the bottom line results of the firm. However, over the long-term, large segments of core customers will be ignored. At the same time, there is the possibility that this approach will change the mindset of executives. This is when they will begin moving away from quality and start focusing on providing everyone with cheaper alternatives. Over the course of time, this can hurt the reputation of the firm and it will damage the industry. ("Fe'nix del Sur," n.d.)

The third strategy is to refuse to market its products to large institutional customers. Instead, Fe'nix del Sur will concentrate on selling their merchandise directly to consumers via the Internet. This is troubling, as this kind of strategy will alienate retail chains who are interested in the firm's products. When this happens, they could begin signing contracts with competitors that are less focused on quality. In the future, this will hurt the industry by reducing craftsmanship and originality. ("Fe'nix del Sur," n.d.)

Moreover, this will have a negative impact on controlling the number of fly by night competitors who emerge and dump worthless merchandise on the markets. This is problematic, as the most firms will take a similar approach by establishing a web site and claiming how their pieces are authentic. Yet, in reality they are nothing more than cheap knock offs that are designed to fool customers. When this happens, there is the possibility that Fe'nix del Sur will be lumped into the same category as other organizations. This can hurt the image of the firm with existing customers and those individuals who are looking for quality works. In the future, this will adversely impact the sales and the liquidity position of the organization. ("Fe'nix del Sur," n.d.)

These different alternatives are showing, how the firm can lose considerable market share to competitors. At the same time, there is a high probability that the negative perceptions will become common within the sector. When this takes place, the odds are increasing that Fe'nix del Sur will adversely be impacted by these issues. This will negatively…

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