Marketing Report Essay
The purpose of this report is to research and illustrate the current state of IMAX”s marketing position - Marketing Report Essay introduction. Conclusions from strategic analysis will be shown in tables, charts and diagrams with clear links to what is being represented. Important figures will be highlighted and quotations clearly referenced.
Strategic analysis IMAX benefit from the sales of major box office titles in addition to specialist AD films. Therefore IMAX has a competitive advantage over rivals as they can offer the same ivies but with enhanced features. AD films give IMAX a major advantage because rivals cannot offer this service. Value Chain IMAX is a manufacturing organization as goods and services are sold to customers. Value Is AAA to products tongue ten unman resources management Ana technological developments stage.
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A considerable amount of revenue has been invested in the research and development of new technology. This allows IMAX to offer first class maintenance and after sales support. Marketing Strategy IMAX regularly invest revenue in R&D for new technology to implement into their yester – this indicates that they specialist in product development Industry Life Cycle The box office sales life cycle above shows that the market is continuing to grow. This is supported by the fact that sales are steadily increasing according to the MAMA.
Growing trends are emerging and consumers are enjoying viewing movies as a regular form of entertainment – contributing to the stable growth of the market Conclusion IMAX has done well to establish itself and identify its own niche in the market. The technology they possess makes them unique as it is not available anywhere else. IMAX has the power to influence other companies in the market because they are such a major player. Contents PESTLE Analysts 4 5 6 7 9 12 ‘IMAX Corporation is one of the world’s leading entertainment technology companies, specializing in immersed motion picture technologies.
The worldwide IMAX theatre network is among the most important and successful theatrical distribution platforms for major event Hollywood films around the globe, with IMAX theaters delivering the world’s best cinematic presentations using proprietary IMAX, IMAX AD, Ana IMAX DAM technology. ‘ Strategic analysis – Distinctiveness IMAX”S systems are unique in the fact that they utilities superior technology compared to conventional systems. The size of the display, enhanced resolution, larger projectors and superior audio are all factors which differentiate Imam’s systems with standard ones.
IMAX theaters are also designed to offer an unmatched experience by being laid out in a dome shape. As a result the viewing angles and acoustics have been vastly improved. Another obvious example of distinctiveness relating to IMAX”s services is the ability to re-master movies to be shown in AD. The only other establishments who benefit from his technology are the ones who have agreements with IMAX. These are usually for educational purposes such as science museums and aquariums. No other theatre who sells box office titles has this capability.
Strategic analysis – Competitive advantage Therefore IMAX has an advantage over rivals as they can offer the same movies but with enhanced systems and features. AD films give IMAX a major advantage because Competitiveness is maintained through investment in research and development. Technological progression is a result of the resources supplied by IMAX allowing them to have a huge influence on the macro environment. IMAX plays a major role in shaping the industry as the systems they build set new standards for rival firms. Added value is also given to products sold by IMAX such as maintenance care plans and extended warranties.
Specialist developed equipment also offers more durability which consumers rely on for extra value. ‘The outstanding reliability of IMAX systems (99. 8 per cent average each year over the last 10 years) reflects a number of factors, including continued education to the development of the technology on a custom- made rather than production-line basis. ‘  Value chain analysis c] MAX Is a maturating organization as goods Ana services are solo to customers. Value is added to products through the human resources management and technological developments stage.
A considerable amount of revenue has been invested in the research and development of new technology. For instance, ‘5% of revenue and 50 employees were invested in R&D in 2007. $12. 6 million was spent in the past three years prior. ‘ [Case Study 1] IMAX offers extra value to firms who take out a lease on their systems by offering a ‘maintenance plan includes an extensive first year warranty, followed by a world-class preemptive service program which egging on the day the theatre is commissioned and extends throughout the life of the system. [l] By in sourcing research and development processes IMAX can add subtle value to the eventual systems – as the engineers and maintenance team will be as informed as the people who created the equipment. After sales service is a major player in the sale of Imam’s systems as companies depend on the reliability of the equipment they purchase. IMAX owns and runs many post production facilities around the globe. Digitally re-mastering films for high resolution and a sharper image offers consumers more viewing pleasure over standard films. Enhanced audio also gives the customer some value as it completes the experience.
Marketing Strategy Figure 1 (Appendix) was taken from IMAX”s 2009 financial report. It shows revenue from 2005 through to 2009 in thousands of US dollars. Markedly, Imam’s services have generated the most revenue over the past 5 years. These include production, post production, film library and distributions, sponsorships and clip licensing. The growth matrix is a useful tool in analyzing the marketing strategy of a company. The fact that IMAX continue to invest so much revenue in R&D for new technology to implement into their systems – indicates that they specialist in product development.
Industry Life Cycle – Sale of Systems and Services This illustration indicates that the market is deep into the maturity stage of the life cycle. I newer NAS Eden an ever Increasing need to outsource meal Ana production services – leading companies to enter the market to satisfy the demand. At this stage, though there has been an increase in rival firms over the last few years, companies are reliant on one another. Major players in the market have developed their own niche, therefore focusing on maximizing sales. For example, IMAX supplies systems to major motion picture companies at the risk of hindering their own box office sales.
However, IMAX knows that they have developed a specialized service and like rival firms, concentrate their efforts on maximizing revenue. It is very unlikely that anymore competitors will enter the market at this point. This is because defensive tactics will be employed by companies to make it difficult for any new business to establish themselves. For instance, exclusive distribution rights, trade agreements and patented technology will make it near impossible for a new entrant to break through. In addition many companies will be benefiting from economies of scale – putting further difficulty on new entrants. Box Office Sales regular form of entertainment – contributing to the stable growth of the market. The US Entertainment Industry Market Stats box office sales below support this claim. The international market grew from 2001 through to 2007 by $10 billion. This is reenacted In Increasing pronto Tort Tells. I nee motion plectrum Ministry Is quite unique in the fact that it is still growing, but displays signs of a fully matured market. For example, established companies focus on brand awareness with little diversification. Solid consumer bases have been built in order to stimulate repeat sales.
It is likely that the market will continue to grow for the foreseeable future. New movies and services are constantly being made available which in turn stimulates more growth from the market. I IMAX PESTLE Analysts I Elements I Negative implications/contingencies I Political are becoming more politically aware than ever I N/A IMAX must retain a neutral political stance people are voting and therefore supporting I maintaining good relations with all political parties. I I I Favorable implications I Consumers I before. More I specific political parties.
I I Economic 1’2007 saw increases in the average cost per film for I N/A I The current nature of IMAX allows for little MAMA member companies and their subsidiaries. I preparations in regards to economic downturns. And marketing costs for MAMA member companies I According to the MAMA 2007 Entertainment Industry the I I U. S. Grew 8% and 4%, respectively, while costs I increase in marketing costs and overheads was subsidiaries grew 60% and 44%, respectively. ‘ [RAPT] I I predicted to grow in the following years. IMAX must I I I both the I Negative line the I for
I take steps to decrease costs such as renegotiating Ideals with suppliers, increasing pricing and cutting I I I wastage. I Socio- cultural ADD ready TV’s have become significantly cheaper and I According to their 2009 financial report IMAX has seen I IMAX have previously had to change their marketing I I I increasingly fashionable in the past few la sharp increase in the lease of technology and sale Strategy as a years. Result of the ever increasing I Globally, broadcast companies such as SKY, ESP. and loaf newer systems boasting the latest specs. This could Competitiveness of the market and focus on offering I I
I Channel 4 have began to enter the market by either I be due to the fact that more and more firms are terrifyingly class services such as, post production I releasing AD channels or screening specially selected Tit enter the market. IMAX has sought to take advantage I facilities, distribution channels and sponsorship I I elevens in AD. Electronic specialists have also started loaf this by investing and improving their services. Ligaments. This sort AT Elaborations allows IM capable of rivaling I increase revenue streams. I I Technological Tit sell none cinema equipment Tit spread the risk and I IMAX”s own technology.
I Pioneering breakthroughs have been made in addition to AS a result of being at the forefront of innovative I Technology is expensive to develop and there is no I I Significant advancements of existing technology. I theatre equipment IMAX has made significant turnover Set price on how much needs to be spent researching I I From selling and leasing gear to companies. In a time I new systems. I Fresh consumer technology like HAD and Blue-Ray has internet and on demand services are sky I I where allowed consumers to get the maximum viewing experience I rocketing this has roved to be a critical revenue I I in the comfort of their own home. Avenue (which stood TTL Stream. ‘In 2007, 51% of total | $59. 12 million) came from IMAX system sales. ‘ [Case I I Illegal I study 1] AS the ever increasing parenting culture becomes more AS the majority of IMAX made movies are documentaries I N/A I prominent, people are calling for the already stringent land other educational videos the firm may not have to I I industry guidelines to get even tougher. IMAX may find I worry about the industry guidelines being reviewed. I having to remove certain titles from their I I themselves I portfolio in the future.
More links are being made with I I explicit movies and negative impacts on young adults. I I I Environmental I IMAX may have to be more aware of their corporate social I Companies who show themselves to be environmentally Elf IMAX does not factor in the changing consumers I I I responsibility in the future. Pressure on governments Delaware are often greeted by more sales. IMAX I attitudes to environmentally friendly products and I I may reduce carbon emissions may filter down to I benefit from implementing new green policies and I services they may lose box office sales.
However, the I I I organizations. Some consumers may go as far as I making changes in accordance. Sisal of systems to other businesses will likely be I I I boycotting firms that do not seem to make an effort. I I unaffected. Conclusion However, as the main source of revenue comes from the sale and leasing of equipment, IMAX is susceptible to changes in macro environment. For example, IMAX will find it hard to sell or lease any systems amid an economic crisis. This limitation has been identified in their 2009 financial report stating: ‘IMAX”s primary customers are commercial multiplex exhibitors.
Thus, IMAX is unable to predict if, or when, they or other exhibitors will purchase or lease IMAX theatre systems or enter into Joint revenue sharing arrangements with the company. If exhibitors choose to reduce their levels of expansion or decide not to lease/purchase systems IMAX”s future revenues could be adversely affected. ‘ [RAPT] Investing in R&D, IMAX has the opportunity to produce new technology which will allow them to re-establish themselves at the forefront of the industry. As the market is continually growing more turnover can be generated if IMAX adapt adequately to changes in the macro environment.
For instance, the growing trend of people regularly attending the cinema for entertainment. IMAX will also benefit from considering to entering new markets such as events and audio visual solutions.
Marketing report Essay
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Marketing can be defined as an organisational function and a set of processes for communicating, creating, implementing and delivering value to customers and for managing customer-business relationships in a way that will benefit both the organisation and the stakeholders involved - Marketing report Essay introduction. Such processes succeed in moving people closer to making a decision to purchase and facilitate a sale. In the long run, these processes will anticipate, identify and try to satisfy customer requirements successfully and profitably. Marketing according to the Chartered Institute of Marketing, does involve all ranges of organisation s whether it is a profit making organisation or a non-profit organisation. All these groups of organisation s have their strategies focused on two factors (Lancaster, 1999). One is the acquisition (recruitment of new customers) and the other is base management (retaining and expansion of existing customers).
Marketing for ‘profit’ making and ‘no profit’ have some similar aspects that both need to adopt in order to compete favourably because in any case each group has the challenge of competition These aspects will range from resource allocation, offerings, relationships, business models to customer satisfaction.
2.1 Resource allocation
It is obvious that companies with greater number of resources compete favourably with their competitors for limited market opportunities and it applies to both these resources include;
Financial-cash and cash reserves
Physical-plant and equipment
Human-knowledge and skills
Legal-patents and trademarks
Organisation al-policies, structure and competencies
Informational-knowledge of competitors and consumers
In both situations relationships is very important between the organisation s and the target customers. Good relationships will result in retaining not only the confidence of the customers but also to reach out for more customers through the existing customers.
Planning, analyses, control and implementation are managerial functions that are performed by a management team of an organisation. For both profit and non-profit making organisation, marketing requires a good management team to oversee the primary needs of their customers. They review marketing programs and monitor the reaction of the market. It is like asking a passer-by in a shopping mall to stop and taste the smell, consistency or odour of a product and then decide to either buy it or not.
2.4 Market strategies
Both profit and non profit marketing entails the design, implementation of strategies to market their services and products effectively. Regardless of an organisation s mission, goals or objective, marketing strategies are a must. This is a planning process that allows organisations to concentrate its resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. It serves as the fundamental underpinning of marketing plans designed to reach an organisation s marketing goals, policies and action tactics into a cohesive whole. Strategies based on market dominance under this form organisation s are classified based on the market share or dominance of organisation they are as follows, leader, challenger and follower.
Porter generic strategies-this is a strategy on the dimensions of the strategic scope meaning the market penetration and strategic strength referring to the firms, sustainable competitive advantage such as cost leadership, product differentiation and market segmentation.
Innovation strategies- this deals with the firm’s rate of new product development and business model innovation.
Growth strategies-this describes how the firm should grow it is normally done by either of the ways:-horizontal integration, vertical integration, diversification or intensification. (Kotler, 1996)
3.1 ‘Profit making’ marketing
Profit marketing entails the principle that it is the job of the marketer to provide the highest quality service, high profitability and productivity levels (Lancaster, 1999). When looking at profit marketing, an understanding of long term relationships with the customer is considered. In this case, the organisation is focused on both the market and the customer’s attitude. Such organisations first determine the desires and needs for its potential customers and then from that build the product or service. Once they convert the prospective buyer, they develop base management which shifts the marketer to building a relationship, nurture links and improve the product or service continuously hence protect the business from competitive encroachment. In this kind of business, the competition is very high and competitors are very many in the market. To cope up with this challenge, a marketing strategy is required. The strategy adopted by most profit making organisation s is the operational marketing which executes marketing functions to attract and keep customers and to maximize the value derived. (Kotler, 1996)
3.1.1 Principles of profit marketing
In contrary to non-profit marketing sector, the organisations here have no business working under a loss. The main aim of marketing is therefore to maximize the amount of profit while minimizing the cost. The following marketing principles are applied;
188.8.131.52 Choice of product
The product to be chosen in this case is normally in conjunction with what the customers need. The demand and supply forces should be weighed very well in order to come up with something which will be easier to market. An example is the selling of Toyota cars in the U.S. It is known that Toyota models are very cheap, comfortable, safe and low fuel effective. Marketing of such automobiles will be easier in the U.S.
184.108.40.206 Target market analysis
The target market analysis will be very crucial because these factors will guide in the creation of a marketing strategy. Cultural, opportunity, economic and environmental analyses help the marketer know more about the target market. Using the example above, the analyses of the U.S market will be to look into the population statistics of people in the U.S, diverse cultures, legal factors, price regulations, trade tariffs, political trends and economic analyses such as the GDP, currency value etc.
220.127.116.11 Market entry strategy
Market entry strategies in this case are many but depend on the costs of marketing and the sales force.
Low price strategy-n a penetration price is necessary to allow more products to sell at first but when it catches up, other pricing strategies are adopted
Product adoption strategy- making modifications to existing product
Availability and security strategy- countering perceived risks by overcoming transport risks
Technical strategy- demonstration of superior products
Total adaptation and conformity strategy- usually a foreign producer gives a straight copy to his/her customers
18.104.22.168 Product branding
A good brand name should be; legally protect-able, easy to pronounce, easy to remember, easy to recognize and to attract attention. There are different kinds of brands that can be applied by Aston Martin limited, these are; Premium brands, Economy brands, fighting brand, and licensing brand. To market effectively in the U.S where almost all leading companies in the world are located, then there is need to brand the Toyota vehicles with something like, ‘Marion Jones’ and it will be easily noticed that it is in the market.
There are many ways by which Toyota can use to price its product in U.S. A price matrix will be suitable that will incorporate factors such as demand, supply, quality and economy. The methods of pricing are;
i. Premium pricing- use of high price which indicates uniqueness about Aston product. This approach is applicable where a substantial competitive advantage is in existence such as for luxuries.
ii. Penetration pricing- the price for the car can be set to be lower than what is offered by other competitors so as to gain a market share.
iii. Economy pricing- cost of marketing and manufacture are kept at a minimum hence becomes a no frills low price for a product.
iv. Other pricing methods are; price skimming, psychological pricing, product line pricing, optional product price, captive product pricing etc.
Communications are crucial for the creation of good public image for the company. Marketing plans and strategies are usually made easier when there are good public relations. Using the same Toyota product, the communication between the Japanese manufacturers and the U.S car market may be in the form of internet marketing, radio advertising, news papers, billboards etc.
3.1.3 Sales force
The sales force of a profit making organisation comprises of professionals that originate from the organisation al structure. This sales team includes all the staff who will take part in the marketing and selling process; the sales staff, professional marketers and the sales management team. They are responsible for ensuring that market information is collected, researched and analysed. The sales force for Toyota Company in the U.S is composed of the technical team, Toyota promotion companies and the Trade and industry Department of Japan who are responsible for providing the logistics for the Toyota marketing team.
3.1.4 Marketing mix
A marketing mix is usually used especially on branding and advertising and as argued by Jerome McCarthy, the populous four Ps of marketing are utilized, these are;
Product-product marketing and management aspects deal with the specifications of the actual good or services and how it relates to customer needs.
Pricing-it is the process of setting a price for a product. It is not necessarily fixing a monetary value but simply what is exchanged for the product or service at stake e.g. attention, time etc
Promotion-promotion comes in various forms-personal selling, publicity, sales promotion or advertising and it refers to the various methods of convincing the customers to buy the brand, product or company.
Placement-it is also the distribution modes which refer to how the product gets to the customer. For example, placement of a coffee product can be the channel through which coffee is produced, manufactured and retailed in shops and hotel. (Kotler, 1996)
3.2 ‘Non-profit’ marketing
With a crowded marketplace, the non-profit sector needs to develop well defined niche for its marketing plan (Dibb, 2001) most non-profit organisation s do not sell products but rather their organisation ’s ideas, mission, services or programs. In a world where technology is changing faster, and information is at everybody’s fingertips, then a strong image is the key to awareness within the community or the target audience. To develop and maintain a visible and credible identity through marketing will lead to increased local and international support for the organisation.
3.2.1 Principles of non-profit marketing
Marketing principle for the non-profit organisation s was first designed by the marketing genius, Philip Kotler in 1975 when he wrote about ‘marketing for the non-profit community”. He quoted the following principles as a must for every marketer in non-profit making organisation s.
Defining who the ‘customers are’
Measuring the needs of these’ customers’
Creating a visual identity
Select and use of appropriate media data
Designing programs that will meet ‘customers’ satisfaction
Analyzing those results to improve its services
Finally, communicating the above to potential donors and other stakeholders
3.2.2 Community service organisation s e.g. World Vision
Many non-profit organisation s like World Vision believe on the premise that their programs and services will sell themselves based on their inherent achievements. In fact, even the best programs will fade unless these organisations spread the information about their mission to other groups, businesses, association and individuals and continually maintain that level of awareness within them. Through communication, change is advocated and understanding built. World Vision will need to implement a marketing strategy just as in the case of a profit making business. In an attempt to stand tall from the many non-profit organisation s being formed every day which offer the same service as World Vision, and become competitive in their service provision, then a good marketing plan is required. Services must be superior in order to meet the demand from their customers. In addition, a non-profit organisation must meet an un-provided need within a community which other organisation s also involve in, for example World Vision serves to give food to the poor people in third world countries. In order to market their relief services World Vision need to move around with the press or create their own documentaries and broadcast it via the existing media houses. They needed to keep up with the struggle for limited resources offered by donors or the governments who fund not only the World Vision but other charitable organisation s.
3.2.3 Mission statement
When starting to form such an organisation marketing strategy, the needs of the founder or the people involved normally is taken into account and it begins by identifying the benevolent goals and objectives that will inspire all the stakeholders. A mission statement defining the overall purpose of the organisation must be stated clearly. World Vision with a mission such as ‘to provide quality and equal basic needs to all humanity’ will be very appealing to all the people and organisation s funding it. The ability of World Vision organisation to continually adjust its services to suit customer’s needs is the key for its financial survival.
For the two last decades, competition between charitable organisation s for diminishing financial resources has inspired them to embrace new skills that will make it possible to improve their fundraising ability while serving their customers. Governments and donors are willing to support organisations which are well known. For instance, where there are conflicts e.g. the recent fighting in Sudan, World Vision was the first to reach there and provide humanitarian assistance. If such organisations are willing to organize a fundraising, then it will be easier for World Vision to market itself and get assistance very quickly. The level of satisfaction of the customers of the organisation’s services determines the success of the organisation.
3.2.5 Effective communication
This is the most important section for the non-profit sector when dealing with marketing. This is so because unlike in the profit making sector where the product if marketed well can be sold regardless of the quality or image of the company selling it. The image of the organisation determines what both the donor for funding groups will give. The question which marketers in the non-profit sector need to ask themselves is, ‘how many people in the community are aware of the good work your organisation is doing?’ and ‘how many donors and private foundations see the financial relevance to provide grants to your organisation?’ with these questions in mind, an idea of effective communication should come into the marketing team. A foundation such as the Bill Clinton Foundation is established mainly because of the political inclination of the founder. Everybody knows about Bill Clinton in the world today. Such kind of foundation will require little communication investment in order to market its services. But for other organisation s in the non-profit sector, good communication will create a consistent image that will enhance the ability of both the donors and the locals to contribute towards a campaign or a project.
The difference and similarities between marketing in ‘for profit’ and ‘no profit sector’ are very insignificant in that ‘for profit’ organisation s deal with both products and services while ‘no profit sector’ dwell on services. Since it is complicated to market successfully a service then the marketers in this sector needs to equip themselves with more skills to reach their organisation’s goals and objective. It is therefore prudent to conclude that the differences and similarities between marketing in “for profit” and “no profit sector” are more perceptual than substantive.
Dibb, S. (2001): Non-profit Marketing, Concepts and Strategies; 4th European Edition Houghton Mifflin, Boston
Kotler, P. (1996): Principles of Marketing; 4th European Edition Prentice Hall. Harlow (UK)
Lancaster, G. and Massingham, L. (1999): Essentials of Profit Marketing; Oxford Press, UK
Mark, D. (2001): Principles and Practice of Marketing; 3rd Edition of Chartered Institute of Marketing, Washington, U.S
 Mark, D. (2001): Principles and Practice of Marketing; 3rd Edition of Chartered Institute of Marketing, Washington, U.S
 Kotler, P. (1996): Principles of Marketing; 4th European Edition Prentice Hall. Harlow (UK)
 Lancaster, G. and Massingham, L. (1999): Essentials of Profit Marketing; Oxford Press, UK.
 Lancaster, G. and Massingham, L. (1999): Essentials of Profit Marketing; Oxford Press, UK.
 Kotler, P. (1996): Principles of Marketing; 4th European Edition Prentice Hall. Harlow (UK)
 Dibb, S. (2001): Non-profit Marketing, Concepts and Strategies; 4th European Edition Houghton Mifflin, Boston.
 Kotler, P. (1996): Principles of Marketing; 4th European Edition Prentice Hall. Harlow (UK)