Based on diagram figure 3.5, page 44, Critical success factors, OU Block Book 3.
Potential customers realise there is a Problem Recognition – a need for something. The need to purchase a Grand Days Out Experience can be both utilitarian, concerning the functional areas, & hedonic, concerning the pleasurable aspect of it. This leads the consumer to become motivated to take action. Past visitors will use their internal search of memories from our parks & possible visitors will externally search for information by shopping around. They will then evaluate all alternatives. This leads the customer to the purchase. We want that purchase to be with us.
Essentials of Marketing, 3rd Edition, Blythe, Chapter 3, page 45, figure 3.1
To do that we must ensure: -
- We target the right people (<50’s) by marketing our products. This is done by advertising.
- To encourage repeat visits and increase on average spending we must find out what will make people come back & spend more money. We will need to conduct Customer Research & Distribution Research, Staff focus groups on <50’s & Staff Feedback. This information will be a mix of qualitative (how people feel) & quantitative (numbers). We will also send out information flyers to past customers.
- Staff Feedback on training will be conducted to ascertain what makes staff happier in conducting their role within the company
What we can do to investigate the potential contribution from <50’s
“The aim of marketing as a discipline is to ensure that customers will conduct exchanges with the marketer’s organisation, rather than with the other ‘stallholders’. To do this effectively, marketers must provide those customers with what they want to buy, at prices which represent value for money”.
We can all be involved in collecting the information required. This will be done by: -
Qualitative research – how people feel.
- Staff over the age of 50 will be asked to conduct a Group depth interview (focus group). This will entail a group of staff invited to talk about our products available to the <50’s, how they feel it will attract the desired age group, how it can be improved, how the marketing affects them and their general opinions. This should provide a wide range of opinion.
- Based on the findings of the above focus group a questionnaire will be sent to staff to see how many people agree with the statements made at the study.
- Staff will be asked to submit a self administered survey about their feelings on staff training, how they feel it helps them in their job, do they have any suggestions on improvement etc.
- Always asking customers to fill in self administered surveys on their departure.
All of the above information will be our Primary Source of information – original information.
Quantitative research – areas of information expressed in number.
- Sales records – ascertain how many sales are made to the <50’s.
- Customer records – gain insight into what type of customer makes a repeat visit and why.
- Marketing communications information flyers to past customers.
- Government statistics on demographics.
This information will be our Secondary Source of information – second hand data from already published information.
OU B202 Block 3 Book, Information, page 51, figure 3.7
There are many limitations in market research. For instance, Mintel reports (a leading Market Intelligence Company) & Keynote reports (a Market Research Publisher) would be very useful to seek information on the market, however they cost hundreds of pounds each. We can make use of the internet to get hold of brief summaries of required information. We can also use special business libraries to get a look at the full versions of these reports. I expect our results from the market research to be relatively accurate because of the use of both primary and secondary data. The questionnaire results should be accurate because it was a fair and random sample of people, however the results could easily be accidentally biased, especially from loyal staff. “Because of the subjective nature of consumer behaviour, no market research is ever going to be fully accurate, but good research will always improve the marketer’s ‘batting average’”. The Mintel and Keynote reports will be accurate because they are detailed reports of factual events using factual and accurate statistics of the general market.
Potential Contribution of <50’s over 5 years
Demand patterns show a trend of seasonality. In our industry most holidays are booked in the Summer, with lower peaks at Easter & Christmas & troughs in the intervening periods.
With this in mind, we can use information gathered relating to demographics to help us predict the volume of <50’s coming to our parks.
To measure the accuracy of the forecast is to use the “mean absolute deviation. This measure is the measure of the average deviation of the forecast from the actual demand, ignoring whether the deviation is negative or positive”. To ensure the forecast will be useful to us, we must ensure that it is”: -
- Clear about the units of capacity needed.
- As accurate as possible.
- Issued in sufficient time.
This forecast will enable us to foresee demand levels & ensure that we will always be able to meet the volume of custom with the appropriate level of staff; thus leading to customer satisfaction during when being served/queing and so on.
The mean absolute deviation is:
20 divided by 5 = 4 (6.1)
Example of data for mean absolute deviation calculation
Operations Management in Context, Galloway, Rowbotham & Azhashemi, Chapter 6, page 168.
Operations Management in Context, Galloway, Rowbotham & Azhashemi, Chapter 6, page 167
Budgeting
Accounting & Finance for Non-Specialists, 4th Edition, Atrill & McLaney.
“The long-term plan would define the general direction of the business over the next five years & would deal, in broad terms, with such matters as: -
- The market that the business will seek to serve.
- Production/service rendering methods.
- What the business will offer to its customers.
- Levels of profit & returns to shareholders sought.
- Financial requirements & financing methods.
- Personnel requirements.
- Bought-in goods & services requirements & sources.
A series of long term plans identify how the objectives are to be pursued, & budgets identify how the long term plan is to be fulfilled. With this information we can try and identify the projected cash flow over the next five years.
With the potential volume of custom known, & the budget in place & all the information gathered from statistics of demographics we can gauge how much cash flow the <50’s will generate for the company based on: -
Accounting & Finance for Non-Specialists, 4th Edition, Atrill & McLaney, Chapter 5, page 126
Based on diagram figure 3.1, Habitual v Non-Habitual purchase behaviour ,Blythe, Essentials of Marketing 3rd Edition.
The above table shows a comparison of a non-habitual purchase and a habitual purchase, showing each stage in the decision making model being carried out.
-
Over 50’s tend to be habitual, so taking the same type of day out every year is achievable for us to sell.
- Older people are less impulsive, complex & are rational decision makers (cognitive) which take in the information of media. Media can be used to persuade them. So the correct advertising is essential.
- Many over 50s are involved with grandchildren, who may be more interested in the 'traditional' products of GDO. But remember that whilst the grandchildren are ' on the rides' the grandparents will have their own needs for relaxation (which is more than just eating!).
- In their own right, many over 50’s have a range of interests - music, dancing, afternoon tea, etc, that a theme park can seek to address. Many older people are also interested in themes themselves, such as history, architecture, antiques - they sell many of the accompanied tours and cruises that attract a lot of older people. How could GDO address these topic areas?
1. Kids clubs in the afternoon to look after the grandchildren would be one area to look at. This would free up the time of the over 50’s to seek their own area’s of interest.
2. Organise small talks regarding certain subjects, demonstrations etc (to coincide with the kids club times).
- The key thing about over 50’s is that many of them have quite a lot of disposable income, and are prepared to pay for safe, interesting and extending experiences. How can GDO tap these resources and interests?
- This is where the surveys can enlighten us to areas not already being used.
- Customer mailings.
Any suggestions relating to the above?
B202 TMA and Examination Handbook, The Open University,Milton Keynes, 2nd Edition 2007
B202 Block 3, Information, Understanding Business Functions, The Open University, Milton Keynes , First Published in 2006
Accounting & Finance for Non-Specialists, 4th Edition, Peter Atrill & Eddie McLaney, Pearson Education Limited, Harlow, first published 2001
Essentials of Marketing, 3rd Edition, Jim Blythe, Pearson Education Limited, Harlow, first published 2001
Operations Management in Context, Les Galloway, Frank Rowbotham & Masoud Azhashemi, Elsevier Butterworth-Heinemann, Oxford, first published 2000
