Transport and Logistics Assignment 2
Marketing mix
Marketing is the process of planning and executing the conception, promotion, pricing and distribution of goods and services to create exchange that satisfy organizational or individual goals. We call them the four “P’s” to reach business goals for more efficiency
Target market within the broad transport industry.
a Target market involves breaking the upmarket into different segments. The three common types are geographic, demographic and psychographic. In a broad transport you should have a look at what your options are like flight, shipment, truck and railway.
First you have a look at a geographic segment and ask yourself the question, where are you based or where do you want to be based? How many “feet” are around you? For a transport industry like running a bus for short distances your location should be in based in the city.
Secondly you should have a look at the demographic segment. What group of people are you going to target? Is it going to be the age group or income etc.? For a short distance bus industry your target market will be for example business people getting to work on time and during the day to go out and see clients and for meetings.
Thirdly you have to look at your psychographic segment. You have to do research on you consumer lifestyle and will they be loyal to your company. When you take the bus example with a target market for business people, your bus should be comfortable for their needs.
Marketing mix for an airline between Johannesburg and Cape Town
Airline name: On-Board Courier and Passenger flights
The service we offer
On-Board Courier and Passenger flights offer solutions for when you urgently need to fly or sent a package or documen...
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...board next to busy highways.
- Publicity and public information
Publicity is another way to the name out there. You can make use of popular newspapers like Beeld, Sunday Times and Business newspapers. You can also have press conferences.
The Price Policy
Firstly we have a look at the individual cost. You have to take overheads, standing and running cost into account and work your profits and tariffs charge according to the above mentioned. All your costs must be covered by your tariff charged to ensure maximum profits.
Second look will be at the incremental cost. In certain cases your costs will vary, it distinguishes between variable cost and overhead expenses.
A Third look is at value of service. This look determines the maximum tariff to be charged. What is the demand for this service? Tariffs must be set in a way that the maximum revenue is obtained.
Also we need to consider what kind of business will be effective in a particular location and
Wilkerson uses a simple cost accounting system in which each unit is charged for direct labor and material costs in addition to overhead costs, which are allocated depending on the percentage of production-run direct labor usage. Under this system, the overhead percentage set by Wilkerson was 300%. This standardized system, however, did not reflect the specific complexities of each
Hannah make the decision, the comparison between ABC and traditional method is very important. First of all. ABC is the best setting with no asymmetric information not like the traditional method. (Mishra, B. and Vaysman, I, 2001) Cost under a ABC approach are classified as different activities. However, indirect overhead under a traditional method is distributed to cost object according to some percentage. (Collier, 2006) ABC uses company’s actual reachable level as standard, so that this standard is reachable and stable. While the traditional method uses the optimal cost as standard, which does not consider the actual low rate or technical fault or many other reasons. Then talk about the incentive system. As the standard of ABC is reachable, it is more possible to get an award and will encourage the employee. However, the standard of traditional method is optimal cost which means unreachable, manager need to continue to eliminate the waste in order to achieve near-optimal level as a performance standard. ABC compares to the traditional method is more suitable to these companies that have a large percent of indirect overhead, various products, and complex production and operation activities. There is affection in part a while using ABC method. As ABC classified the cost as different activities and it is more accurate than using traditional method. This leading to the calculated product cost more
Stradling, S., Carreno, M., Rye, T., & Noble, A. (2007). Passenger perceptions and the ideal urban bus journey experience. Transport Policy, 14(4), 283-292. doi:10.1016/j.tranpol.2007.02.003
If done right, I believe that all of the costs can be allocated to each of the three products through both direct and overhead costs. The only direct costs that are being included currently are labor and manufacturing costs. I broke up overhead into overhead based off direct labor and overhead based on units sold.
This also involves the role of manager who has to consider the relevance of costs, volume, and profit in making management decisions. In the organization, there are many cost drivers across various activities of it production process (Alnoor, B. el at 2012, pp.33-34). It can be classified in various ways and one beneficial way is relate to how they act in relation to the changes in the volume of activity (Atrill, P. el at 2013, pg.239). To begin with, fixed cost is when the quantity of product or volume of activity has changed while the cost of that activity still remains the same, for example, rental, insurance premiums, loan payments and others. Sometime, this might increase along with the volume of activities which called stepped fixed cost. This probably can be realized when the volume of activity has expanded over the limit of rental property which this will require to rent new property in order to fulfill the excess volume. However, ‘the shorter the time period, the greater the probability of the particular cost will be fix’ (Drury, C. 1992, pp.29-30). On the other hand, a variable cost will be change in direct proportion to change of volume of activity which means cost and activity will increase in the simultaneous direction. This cost use to represent cost per unit of individual product or service, which this might help to
Using marginal costing technique we get information about fixed costs, variable costs and contribution. Using
should not use the traditional method over the ABC costing method. Although the Traditional method is easier to implement, this method doesn’t take into account that Woodward Farm Inc. uses an automated process in order to produce goods.Therefore in this method, due to the automated process, direct labour hours is most frequently used in order to calculate the overhead cost. Under the traditional method other cost drivers such as quality control and soldering activities would not be accounted for which results in an inaccurate representation of the actual image of the company 's progress. Therefore if traditional method is used to compute the overhead, this could lead to inaccurate and wrong managerial
Finding ways to move goods from one point to another at a reasonable cost and within an acceptable time frame is a growing challenge for global businesses today. The costs and risks associated with transportation are increasing with the advent of globalization and low-cost-country sourcing. Even for companies with local operations only, they have to supply their products to various parts of a country which increases the costs and risks. Since the cost of gasoline has been on an upward trend, high level of efficiency in transportation is required to lower the costs involved and the risks associated with the costs. Costs concepts in transportation include economic, social and accounting costs. The risks and costs involved increases if the various modes of transport are used. There has been concern over many businesses failure to strategically think when they employ multimodal transportation services. Many businesses prefer the least expensive multimodal model instead of choosing the most effective; this trade-off is very expensive with hidden costs and risks increasing significantly (Molenaar, Anderson, Schexnayder, National Research Council (U.S.)., National Cooperative Highway Research Program., American Association of State Highway and Transportation Officials., & United States, 2010).
The overall purpose of cost accounting is to advise top administration and the management team on the most suitable and cost effective methods and actions to employ based on cost, capability and efficiencies of a given product or service. It can be defined as the method where all the expenditures used during execution of business activities are gathered, categorized, examined and noted down (Horngren & Srikant, 2000). Once these numbers are gathered and recorded the information is used to determine a selling price and/or to identify possible investment opportunities. Although the principal aim or function of cost accounting is to help the business administration with their decision making and business planning process, the cost accounting data
This analysis gives insight into the industry and market a business intends to operate in.
Marketing is a process of determining a consumer’s needs, devising a product or service to satisfy those needs, and trying to focus customers on the goods and services you are offering. Marketing is extremely important, and a fundamental building block for business growth. A marketing team is given the task of creating customer awareness through a variety of different marketing techniques. If a business does not pay close attention to their consumer demographic and needs, they will eventually fail over time. Two important aspects of marketing include acquiring new customers, and the preservation and growth of relationships with current customers. Marketing has always been viewed as a creative outlet, which encompassed advertising, distribution, and the selling of goods and services. Marketing staff will also try to anticipate what customers will want in the future, often being accomplished with market research. In summation, a good marketing plan should be able to create a favorable proposition or series of benefits that a customer can value through goods or services. The marketing mix is normally described as the strategic positioning of a product or service in the marketplace, using the specification of the four Ps. During the early 1960’s, Professor E. Jerome McCarthy of Harvard Business School stated that a marketing mix contains four elements. The four key points are product, pricing, promotion, and placement. It is recognized that all these aspects must be present to ensure a successful business model within a given industry. We will now take a thorough look at the four marketing mix points.
In consumer behaviour terms,how is the offering from the company addressing the needs of the market?
The major objective of any company is to make profits. Marketing is responsible for identifying a company’s customers anticipating their needs and wants, satisfying theses needs while keeping the its major goal which maximizing profits
An organisation strategies that combine all of its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from market research and focus on the right product mix in order to achieve the maximum profit potential and the business. marketing strategy is one way to achieve the goal of a company. The destination marketing is the first and best in class in meeting the needs and aspirations of consumers. Besides that, being a key partner for our customers, consumers and communities. Eliminating non-value added activities of the process. However, the aims to increase the target profitable growth and provides benefits above average employees and shareholders. There is an example of marketing strategies that used in Rejoice company. The 4P’s are influence the marketing strategies.