Employee Motivation And Organisational Performance Commerce Essay

Employee Motivation And Organisational Performance Commerce Essay As the hospitality industry keeps on growing, the competition has turned into a battle now. During this tough time it is very pragmatic to hold on to our loyal guest even though there is a ceaseless change in the organization. To overcome this challenge of holding our loyal customers and to keep on attracting new guests, it is very important that the employees are highly motivated. This research critically analyses the factors affecting the motivation of the employees in an organization, it evaluates the effects on the performance of the organization due to motivated employees. It suggests a relationship between the employee motivation and the organizational performance. The research was carried out by taking interviews of the employees as well as the executive member of the hotel in order to get hold of perspective of both the sides. The important factors have been acknowledged and critical analysis has been done. The findings of the research exhibits that the organisation is constantly doing well but there is always a scope of improvement. It also gives the recommendation to improve the organizational performance by motivating the employees. 1 .INTRODUCTION When we think of the term hospitality, different things come in our mind. The first thing what we can think of is hotels. Many people also think about the famous pineapple which held an important part in history when it came to the term hospitality. Hospitality word comes from Latin language i.e.hospitalitem, hospes, and hostis (friendliness to guests) mean to welcome with warmth and care. Hospital also comes from the same source with the concept of caring about human beings who are ill and who want care, support and love. When we speak about hospitality we talk about guests and not customers, as the word guest brings out the full dimension of hospitality and in real terms. The word customer appears less welcoming and it focuses on financial transaction. In hospitality industry we need to greet our guests with a warm and genuine welcome. In order to achieve this we need to create a surrounding which is totally different from outside world. We are talking about warm and hospitable sur rounding with a prompt, pragmatic and professionally delivered service which requires employees who are willing to deliver it. Now the word service comes Latin word servitium meaning act of serving, demonstrates a creative and incorporating function with many shades and intricacies. The meaning of hospitality and service are almost intertwined, it can also be said that if hospitality is strategy than service is tactics. (Sturman et al., 2011). Now in this ever growing hospitality industry, consumer expectation and demands for quality in increasing and consumer tastes is varying on the other hand. To deliver service in this cut throat competition internationally and nationally is very difficult and it requires highly motivated staff. Customer loyalty is another big issue in todays hospitality industry, in order to overcome this issue there has to efficient, motivated staff. Employee motivation is by far the most serious issues in any of the organisation. It is very important to understand and use the motivation technique for managing the people in hospitality industry. Furthermore, customer satisfaction is highly affected by customers perception of employees effort. (Mohr and Bitner, 1995 cites in Kusluvan, 2003.p.339) and effort is what motivation is about. There has been tremendous amount of research done for different employee motivational theories which are conducted outside hospitality industry. Many empirical studies which are done in past on motivational theories have somewhat failed to show the direct linkage between employee motivation and organisational performance. It has been always said that employees are the biggest asset for any organisation and there has been efforts to motivate them without knowing the exact factor that is behind the employee dissatisfaction. To improve any organisations performance three things are very necessary which are productivity, labour efficiency and staff turnover. This is quite evident that if the employee is happy and motivated then the productivity is going to increase by itself. If the employees are happy then loyalty towards the firm increases and it ensues less staff turnover and higher labour efficiency. This research will review the empirical studies done by other researchers on employee motivation and will integrate all the theories and hypothesis in one discussion. The author will also establish a direct linkage that how employee motivation affects organisations performance, how employee motivation helps in increasing loyalty towards the organisation. 1.1 AIM OF THE RESEARCH The aim of the research is to study the relationship between the motivation of the employees and organizational performance. 1.2 OBJECTIVES To critically analyse the employee motivational factors affecting the growth of an organization. To study the relationship between the motivation and organizational performance. To critically evaluate the interpersonal relationship and effects of communication on the level of motivation of employees in West India quay Marriott. To suggest recommendations based on the research and analysis in order to increase the motivation of employees and hence the productivity of an organisation. 2 .LITERATURE REVIEW In order to become good in anything, the only talent you need is motivation Charles de Gaulle. Literature review gives a proper framework to evaluate and critically analyse the various motivational theories and conceptual models which are necessary for the operational functioning of an organization. It relates to various working models of motivational theory used by the organization to keep their employees motivated and increase the productivity of the organization. It is very necessary to understand that the motivational level of the employees working in a particular organization should be on optimum level because of this ever changing dynamics and structure of the hospitality sector. A detailed critical evaluation of the various motivational theory and many empirical research done recently is been carried out by the author, so that a proper understanding of steps which are necessary to launch a proper motivational program for the employees is fulfilled. 2.1 MOTIVATION CONCEPT Its very difficult to give an exact definition of motivation because it varies from individual to individual and culture to culture. The word motivation derives from the Latin verb movere and means to move (Pintrich Shunk, 2002, p.5. cited in Lins (2005).According to Pintrich schunk, the motivation refers to the process whereby goal-directed activity is instigated and sustained (2002.p.5).The term motivation is like a force which moves arouse and direct people. Work motivation therefore refers to a personal desire to work hard and work well to the arousal, direction, and persistence of effort in work settings (Rainey, 2009, p.248.cites in Vellnagel, 2012).Motivation can be referred to as the willingness to exert maximum level of efforts toward organizational goals, conditioned by the efforts ability to satisfy some individual need (Robbins, 1993, cites in Jang, 2008, p.17). Motivation is defined as the direction and persistence of actions (Mullins, 1992 cites in Jang, 2008, p.17).Mullins also states that the motivation is the driving force which drives an individual towards certain goals and expectation. Now the term motivation is explained by various people in the past like Abraham Maslows in his motivation hierarchy, Hertzbergs concept of intrinsic and extrinsic motivating factors. Maslow (1943) explains in his theory that every human being has five needs which are in hierarchy. Hertzberg (1966) critically analyses in his motivation hygiene theory that there are two factors affecting the individuals satisfaction or dissatisfaction with work. Employee motivation research is done by many people to name few of them are Charles and Marshall (1992) and Simon and Enz (1995) but kovachs instrument is the most comprehensively used for all the employee motivation studies. According to Kovach there are ten factors affecting motivation of the employees when he c onducted a study consisting of ten industrial workers in United States, which are as follows: Good wages. Tactful obedience. Job security. Appreciation and praise for work done. Feeling of being involved. Sympathetic help with personal problems and opportunities for growth and advancement. Good working conditions. Personal loyalty to employee. Interesting work. (Kovach.1980, 1987) Kovach in his long study between 1946 and 1986, found a very slow changes of industrial workers wants and needs. For example, higher ranked appreciation and praise was replaced by interesting work. Also it was seen that good wages was always ranked 5th among the ten factors which shows that good wages may not be the most important factor what the employees are seeking when it comes to job. The following changes were based upon the general improvement of Americans standards of living and quality of life. Thereafter Charles and Marshall(1992) simulated Kovachs study among 255 employees of seven Caribbean hotels and the study showed very different results compare to what Kovachs result was. The result showed that the two most important factors of job motivation were good wages and good working conditions. These findings were supported by Simon and Enz (1995), who conducted a survey among 278 hotel employees in different hotels located in United States and Canada. Simon and Enz study showed that good wages, job security and growth were the three most highly ranked factors for job motivation among hospitality employees. These studies can be related to Maslows hierarchical theory of motivation where it is critically analysed that the human behaviour is affected by five needs system in which the most primitive or the basic one is at the bottom of the pyramid and accordingly promotes itself to the most mature one .The five needs of the human being in the Maslows pyramid are as follows Being needs Deficit needs (Created by author Adapted from Maslow 1954) 2.2 EMPLOYEE SATISFACTION The definition of employee satisfaction can be either an overall feeling about the job, or as a linked set of approaches about various aspects of the job (Spector, 1997). Locke (1976) defined employee satisfaction as a satisfying or optimistic emotional state resulting from the appraisal of ones job or job experience. Levy -Garboua and Mont Marquette (2004) defined employee satisfaction as a guide of preference for the experienced job against outside opportunities qualified on information available at time. A comparison is made in the given definition between the real job experience in the past and the mental experience of outside opportunities available. It also contains the comparison between future expectations of own job and outside opportunities in the future(Levy-Garboua et al.,2007).Employee satisfaction is an important variable which gives a general preview of the employees attitude towards their job and workplace. Hence employee satisfaction is the expectations of an employe e about workplace and attitude towards his job. As a result, job satisfaction is a function of the extent to which ones needs are satisfied in a job (Togia et al., 2004).Considering the different definition of employee satisfaction author argues that expectation can vary from employee to employee from monetary gains to career advancement. Depending upon the needs of the employees, organisations carry out the motivational training program. In this modern time various hospitality industry are concentrating more on HRM i.e. Human Resource Management. Different HRM policies consist of various techniques. In one of the similar research carried out in UK comprising of four organisations showed the link between employees perception of these high commitment performance management practices by HRM and their commitment towards an organisation. The research carried out in UK consisted of 524 questionnaire responses collected from four organisations. The findings in the research clearly posit t hat there is a strong relationship between employee perception on HRM practices and their commitment towards the organisation. The performance of the employee is elevated when there is a trust on HRM policies and employee pursue it as fair (Farndale et al., 2011p.16).HCPM (high commitment performance management) practices achieve their goal of higher commitment provided the practices followed are perceived to be fair by the employees which in turn benefits the overall performance of the organisations (Dirk And Ferrin, 2001 cites in Farndale et al., 2011 p.16). HCWPs should therefore include performance management elements which allow employee engagement (Gardner et al., 2001 cites in Farndale et al., 2011 p.16) and prospects for development, but it also needs to be made on procedures and interactions that are considered fair by employees. Now, the author would like to add that since employees make most important aspect of any organisation, so definitely all the HRM practices put for ward should be benefiting the employees rather than just profitability of the organisation. Having said that, HRM practices should also be pragmatic enough to avoid overdoing of any procedures or practices. The core Motivational idea related with HRM performance research is simple and intuitive. If the people enjoy the work they are given and they do the work with full of their abilities and work harder, they will be motivated to perform at a higher level when given the opportunity to do challenging and enjoyable work. Employees want challenge and personal growth (Walton, 1972.p.71 cites in White and Bryson, 2011.p.4). McDuffie (1995, p.201 cites in White and Bryson, 2011.p.4) argues that employees will only offer discretionary effort if they believe, among other things, that the company will make reciprocal investment in their well-being. Furthermore, another author Appelbaum et al.(2000.p.46 cites in White and Bryson,2011.p.2) posits Jobs that are challenging and make use of worke rs skills are intrinsically rewarding. As HRM is designed to provide jobs that are more satisfying and involving for employees it is natural to assume linear increments in motivation as with Appelbaum et al. (2000.p.46).But authors like Becker and Huselid (2006) and McDuffie (1995) put forward views which are contradictory and they said at after certain level of threshold point the motivation of employees follows a non-linear effects. A contrary view adopted by Marxian labour process theorists is that HRM implies labour escalation and that can have negative incremental effects (eg.Ramsay et al.2000 cites in White and Bryson, 2011.p.3).Finally there is the non-linear model of Godard (2001) where HRM initially has positive effects but at later stages turns negative at high levels of implementation due to work strain. Here author argues that although HRM practices are very much necessary for any organisation and in order to reap profitable results it should strongly signal employees. H RM practices should not be confined to only on specific opportunities for employee participation and personal development but also whether the HRM practices helps in total transformative development that conjures employee identification. 2.3 FACTORS AFFECTING EMPLOYEE MOTIVATION As we saw in research done by Kovach, Charles and Marshall, Simon and Enz that there are many factors which affect employee motivation and satisfaction. These factors keep on changing depending upon the needs of the employees at different time. As Maslow in his famous theory said that the human needs are divided into five basic needs. Then Herzberg came up with dual factor theory stating that man has two sets of needs one of an animal to avoid pain and another of a human to grow psychologically. During all these after much empirical research it has been found that there are many factors which affect employee motivation. In order to measure job satisfaction and motivation of an employee, its very important to measure different facets of the job which is generating employee motivation. Now, Facets of job satisfaction can involve any aspect of the job such as pay, colleagues, supervisors, organisational factors and work conditions (Coomber and Barriball, 2007 cites in Akman et al., 2011 p.677). Pearson (1991 cites in Akman et al., suggests that the employees wait for their job to provide a combination of features (e.g. pay, promotion and autonomy) for which the employee has certain favourable values. Furthermore, while discussing the factors Luthans (1992 cites in Akman, 2011.p.677) posits five factors which affects the employee motivation. These factors are pay, job characteristics, working conditions, management politics and working colleagues. While pay was considered as external factor by Luthans (1992) other factors like job characteristics have been defined as internal factors (Rose, 2003 cites in Akman, 2011.p.677). Mcafee et al., (1995 cites in Akman 2011.p.677) investigated effects of discretion, result feedback and process feedback on employee job motivation. It was found that only discretion and result outcome doesnt affect employee job motivation but it is very necessary to give them process outcome also. Drummond and Stoddard (1991 cites in Akman 2011 .p.678) add to the discussion that employee satisfaction contains an evaluation of various features of the job. These characteristics are working conditions, pay, and relationships with colleagues and supervisor, organisational policies and nature of the work itself. When talking about characteristics of job like working hours, It has been proven in the research that employees who get flexible working hours are more happier and content and they give back more to the organisation. Berg et al., and Dockery (2004,2005 respectively cites in Atkinson and Hall,2011.p.101) posits that flexible working hours helps to promote active states such as being pleased and cheerful because they feel that they are treated well. It also helps to generate passive state which reflects in feelings like contentment and calm, since there is reduction of work-life stress and this all was possible because of flexible hours provided to the employees. Furthermore author adds to the discussion that if the employees are happy, it shows in the overall productivity of an organisation. Basically it is a two way effect if the employee feels that they are taken care of by the organ isation, employees tend to reciprocate this gesture by generating revenue or profit. Management has to create trust among the employees which is another factor that is important for employee motivation. Various people investigated about employee motivation and job satisfaction and among one of them were Kazemzadeh and Bashiri (2005 cited in Akman et al., 2011.p.678) who identified ten main groups which are as follows: Management and personnel relationship. Relation between employees. Employees job satisfaction. Education. Wage and salary. Other welfare facilities. Employees commitment. Job promotion. Performance. Organisations systems and processes. Another author named Bodur (2002 cites in Akman et al., 2011.p.678) suggested that work content, age, gender, educational level, working conditions, location (rural or urban), co-workers, salary and working hours are some of the factors related to job motivation and satisfaction.Kuo et al.,(2010) cites in Akman et al., (2011,p.678) that both job characteristics and employee empowerment are important factor in order to maintain high employee commitment and loyalty towards the organisation. Taking the research even further Jun et al., (2006) investigated direct and indirect relationships among top management commitment, HR-focused TQM practices, and employee satisfaction and employee loyalty. They found a strong relationship between TQM practices and job satisfaction loyalty. Author would like to add further that factors affecting employee motivation can differ from employee to employee depending upon their needs and desires. For e.g. one employee is looking for monetary gains then mon ey will be motivating factor for him and if another employee who is looking for career advancement then promotion and rewards, recognition will be motivating factor for him. 2.4 RELATIONSHIP BETWEEN EMPLOYEE MOTIVATION AND LOYALTY TOWARDS ORGANISATION Loyalty is an emotional state it signifies the relationship of an employee with the organisation for which they work and that has implications for their decision to remain with the organisation (Allen and Grisaffe, 2001 cites in Akman et al., 2011.p.682).According to another definition loyalty means as attachment to the organisation specially when one is having strong believes in organisational goals and values and has a strong desire to maintain membership of the organisation. Furthermore Becker et al., (1995) defined loyalty in Akman et al., (2011.p.682) as a strong desire to be a part of the organisation and put high levels of effort for the sake of an organisation and definite belief in the goals and values of the organisation. Thus, loyalty is strong belief in goals and values and a desire to be a part of the organisation. Chen (2006) cites in Akman et al., 2011.p.682) that while job motivation represents an effective response to specific features of the job with proper attitude, employee loyalty is in effective response to the whole organisation. Furthermore, empirical evidence suggests that employee motivation and satisfaction are precursor to organisational loyalty of employees. This suggests that organisational loyalty of employees develop from job satisfaction and motivation and which nullifies the effects of staff turnover. Also, author will like to add to the discussion that loyal employees help in organisations growth as they believe in goals and values of the organisation. This also reduces the staff turnover issue leading to high profitability by saving money on recruitment and training of staff. 2.5 LINKAGE BETWEEN EMPLOYEE MOTIVATION AND ORGANISATIONAL PERFORMANCE For any organisation its employees are the major assets to look for. Employees are the people who help the organisation grow in terms of profitability and revenue. In order to keep the employees motivated HR has a major part to play. One of the first empirical studies carried out to show the linkage between Employee motivation by HR and organisational performance was done by Arthur (1994). Arthur in his study posits that the explicit sets of HR policies, practices and systems that were designed to enhance the employee commitment (e.g. empowerment, due process, high wages and benefits, etc.) was linked to three proficiency measures of firm performance (i.e. productivity, labour efficiency and staff turnover).A similar study was carried out by Huselid (1995) a year later which showed a similar sets of 13 of HR practices known as high performance work system, was related to both efficiency (i.e. employee turnover) and financial measures (i.e. sales, profit, and market value) of firm per formance. There were many studies which were carried out after that which highlighted the important relationship between employee motivation by HR and firms performance. Furthermore author adds to the discussion that although initially efforts broadened the understanding of about this important relationship, a number of scholars challenged the authenticity of the research. One of the most commonly voiced concerns was that most of the research till date used cross sectional research design (Gerhart et al., 2000 cites in Tracey, 2012. p.910). But research has proved that the relationship between employee motivation and firms performance cant be denied. As one the studies carried out by White and Bryson (2011) posits that if the employees believe in the HR policies and practices they feel motivated and it reflects in their work which leads to higher productivity. 2.6 DIFFERENT MOTIVATIONAL THEORIES USED IN HOSPITALITY SECTOR There are several motivational theories which are used in hospitality sector to improve the employee motivation. Author has briefly evaluated few of them in the below tree diagram. (Created by author adapted from Vellnagel 2012) Furthermore, the difference between the content theory and the process theory is that content theories focuses on factors which leads the individual feel motivated within inside whereas process theories concentrates on the dynamics of motivation and how it takes place. Content theory consists of: Maslows needs of hierarchy theory. Hertzbergs two factor theory. Achievement motivation theory. ERG theory. Process theory consists of: Vrooms Expectancy theory. Goal setting theory. Adams Equity theory. Porters Performance Satisfaction Model. As the concept of motivation is very broad and since it would go beyond his scope of work author has liked to discuss and analyse only selected theories of motivation in the research. 2.6.1 CONTENT THEORIES The content theories supposed that all the individuals have same sets of needs (Fincham, Rhodes: 2005 cited in Vellnagel 2012).They gave importance to the reasons for motivated behaviour (Tosi, Mero, Rizzo: 2000, p.129) of individuals. The most famous of all the content theories are Maslows hierarchy of needs(1943),Hertzberg two factor theory(1959),the job characteristics approach(Hackman,Oldham:1980) and McClellands achievement power theory(1961). 1. Maslows Hierarchy of needs theory The most simple and well known motivational theory was put forth by Humanistically oriented psychologist Abraham Maslow (Arnold et al, 2005.cited in Vellnagel 2012).In 1943 Maslow put proposed a theory of humans function namely according to the sequential hierarchical order of the development of five basic needs (Latham, 2007. cited in Vellnagel 2012).According to Maslow if any of these needs are fulfilled then the individual goes on to fulfil the other needs. If the all the needs are satisfied then the level of motivation goes down. 2. Hertzbergs two factor theory In 1959, Hertzberg proposed a theory on his findings that the man has two set of needs, one of an animal to avoid pain and the other of a human to grow psychologically. These findings led him to put forth a dual theory of motivation which is being used for management training and work motivation program worldwide. This theory critically analyses the factors which makes the employee feel happy at work and leads to job motivation and these factors were called motivators for obvious reason. These motivators are intrinsic factors which are directly affecting the inner feelings and self-esteem of the employees (e.g. Career advancement, achievement, work itself, responsibility, job growth).On the other hand factors which lead to job dissatisfaction are extrinsic factors and are related to external working conditions, relationship with colleagues and supervisors, wages, personal life and these are called hygiene factors. (House, R.Wigdor, L.2006) 2.6.2 PROCESS THEORIES The process theory aims at the identification of relationships among dynamic variables which make up motivation (Mullins, 2001.p.237).They look at mental processes which cause the motivation in an individual. The process theory is all about how behaviour is being created. There are various classical process theory like Adams Equity theory (1963), Expectancy theory by Vroom (1964), Lathams and Lockes goal setting theory (1984). 1. Adams equity theory An American behavioural psychologist named John Stacey Adams, proposed the Equity Theory in 1963 which is possibly the most readily understandable psychological process(Riley,2000.p.26 cited in Vellnagel,2012).Equity theory aims at an individual feelings of how fairly he has been treated in comparison to others. According to this theory people develop a belief of what is fair reward for ones job contribution that is an exchange. Most exchanges involve a number of inputs and outcomes. People compare the exchanges with their employer to exchanges with other insiders and outsiders. If an employee then believes that he is unfairly treated then he will seek justice. 2. Vroom expectancy theory A sophisticated theory of motivation was put forth by Victor Vroom in 1964 and it focuses on the concept of expectancy (Van der Wagen, Davies.1998, p.31 cited in Vellnagel.2012).Instead of aiming on the factors of work which maintain and energize behaviour (Latham, 2007.p.44 cited in Vellnagel, 2012).The theory was inspired on thoughts that a individuals activity leads to a certain behaviour and then this behaviour leads to a certain result. Vrooms theory consist of three variables which are expectancy(E),instrumentality(I) and valence(V) due to which it is also called as the valence-instrumentality-expectancy theory. Both expectancy and instrumentality are possibilities or probabilities. It is about what the individuals estimates to be the likelihood of good performance leading to valued rewards, and of effort leading to good performance. The product of the three variables equals the force (F) of an individuals motivation to perform. Therefore F=E*I*V FINDINGS In order to find the research study satisfactory an overall practical approach of all the four motivational theories should be considered. Maslows theory was one of the basic motivational theories but it was also one of the most criticised theories. The reason was because it was vague and didnt predict behaviour; also it was based upon the socio-philosophical approach reflecting only middle class of white Americans from mid twentieth century (Buchanan,H,2010.p.269).It should also be noted that even though Maslows theory was criticised but this theory has huge influence on todays management practice. The two factors theory put forth by Hertzberg was another motivational theory which was not spared from criticism. Its believed that there might be a gap between what people think motivates them and what actually motivates them. People could relate their success to their personal efforts and blame people or the organization for the failure. However, the two factors theory describes the employees needs and also the rise in motivational level after the redesigned job (Fincham, R.2005.p.200). The two process theory are good but not good enough. The best Adams equity theory is best when comparing salaries. As it is well known fact that money can be measured but education. Knowledge, training and effort are not measurable. Same can be said about the Vrooms theory of expectancy, after a critical analysis its been found that Vroom theory is a nice mathematical approach but when it comes to identifying and quantifying the expectancy of a certain motivation to a task, it is becomes very complicated and also the practical approach is very low (Fincham,R.2005.p.209 et seq.) 3. METHODOLOGY 3.1 Introduction This part of the research concentrates on the methods that need to be adopted in order to conduct the research. Research can be defined as the systematic approach of seeking solutions towards a problem. Research comprises of investigation, recording and analysis of evidence for the sole purpose of gaining knowledge. Every research has this issue of choosing the most appropriate method so that the objectives

Company Introduction, Market Segmentation, and Product Positioning Essay

The key to successful product implementation in today’s national enterprise system is the effective marketing of a new product with the company’s line of existing products. As stated by Lacobucci (2012), marketing is defined as an exchange between a company and its customers. The customer wants something from the company or firm and vice versa. In previous times, a company would manufacture a product they thought the customer would want or need. The customer purchased that product because of a pending need, which basically meant that marketing used to be product oriented. However, marketing today is more that an advertisement for goods and services in an attempt to attract new business. We live in a customer orientated and empowered marketing environment. We realize the importance and ramifications of having an exchange with our customers and developing a relationship with them. It is this exchange of information between our company and our existing as well as future customers that secures our position in our target market. Our company is a regional tool distributor located in the northeastern section of the United States. Our customer base consists of several major retailers, nationally known in the retail and wholesale tool industry. We used the brand label Blue Steel Tools for marketing and distribution of our products to discuss the implementation of an effective plan to market a new product line, the Illuminated Power Wrench. This paper will analyze market, identify our market segment for sales distribution and discuss the reasoning for the segment. Discussing the target market and why the targeted customers were specifically selected. We will do the SWOT analysis; describe the unique market position and the expected service provided in meeting the needs of the target audience. 1. Identify the marketing segment for the product and provide a rationale for this segment. The definition of a market segment as stated by Lacobucci (2012) is a group of customers that shares similar inclinations towards our brand. To define market segment further for our needs, it is an identifiable group of individuals, professionals or organizations that share one or more characteristics or needs in an otherwise homogenous market. In our case, our product will have a very wide market of consumers and small business owners and employees. Therefore we will need to reduce the market segments to larger chunks. Market segments generally respond in a predictable manner to a marketing or promotion offer. The market segment for the new product will vary widely due to the versatility of our product usage. Our main segment approach will focus on the wholesale distribution to retail repair supply stores who carry lines of tools for resale to the private and business consumer. These market segments will include businesses such as Lowes and Home Depot, retail tool distributors such as Harbor Freight Tools, automobile parts stores such as Advance Auto Parts and tool catalogue companies such as great Northern to name a few. As we analyze this segment we ask the question if this segment is viable and can we profit from using it. Other considerations are accessibility and measurability. This segment is small enough to manage our sales and distribution, but large enough to reach the ultimate user of our product. This market segment possesses the potential and versatility to sell and distribute our product to the target consumer market with a widely diversified audience in the retail industry. The bases for this segmentation include similar demographics, geographical locations, and psychological make-up of customers and behaviors of users/purchasers. In other words, the customer base for our segments meets the desired user of our end product. Anyone who builds or repairs something whether they are a novice or professional is a potential customer. Therefore, by using this method of market segmentation for product distribution, we will successfully sub-divide a large homogenous market into clear identifiable and manageable segments that have similar needs, wants or demand characteristics indicated by Lacobucci (2012). 2. Discuss the target market and provide rationale for this target market. The target market defined is the particular market segment at which a marketing campaign is focused. As stated earlier, this product has been designed for the retail tool industry. We have targeted segments in the industry that will be the most successful in reaching the consumer and generating a demand for our product through steady sales. Lacobucci stated the first perspective in assessing segments target is to have a view of the segments themselves and the primary concern is the segment be profitable. This in turn will become a profitability issue for our company as we continue to hold a place in the small tool market and generate profits with continued sales. The second perspective examined was if the market or segment fit with who we are. In this case the answer is yes. The ultimate target for this product is the consumer. The greater exposure we have, the higher propensity for sales growth. The illuminated ratchet screw driver is a quality tool for use by not only the novice home self repair person; it will also meet the needs of the professional repair person, no matter what the industry. The illumination system in the handle of the wrench will appeal to the vehicle mechanic working in the close quarters of an engine compartment, the electrician repairing the circuit breaker box, the computer repair technician working in between electronic circuitry as well as to the basic consumer performing handy maintenance projects. This tool will come with the standard wrench lugs and have availability to accessories such as wrench tips to enhance its versatility to meet the needs of a wider target audience. The wider target audience is customers of our targeted market segments. Therefore the target market is our pathway to the ultimate user of the product is consumer sales. The strategic sales objective of these retail establishments coincides with our strategic vision of reaching the ultimate user of our products, satisfying their needs and increasing the likelihood of additional product sales. 3. Perform a SWOT (strengths, weakness, opportunities and treats) for the company. As we move forward in the marketing of our product, we need to our own corporate strengths. Lacobucci (2012) suggests the use of a SWOT analysis in identifying our strengths, weaknesses, opportunities and threats. The strengths and weaknesses characterize our company in relation to competitors where the opportunities and threats characterize the broader environment such as the tool industry, suppliers, the government and etc. Our strengths are in our track record in t he tool industry. We have provided quality products at competitive prices. Another perceived strength is in the management of our company. The senior management of Steel City Tools has provided a strategic vision with clearly defined attainable goals for market position and sales. However a perceived threat is in the foreign market. A number of tool company’s efforts have been over shadowed with a cheaper duplication of products from foreign markets. The US has been plagued with a reduction in the manufacturing industry due to globalized markets, elimination of trade barriers and outsourcing. The end result is our market segment (distributor) could purchase a similar product cheaper and increase their gross margin and not purchase our product for resale. Another threat we are not prepared to react to is loss of a major distributing customer. With more and more businesses merging, we could lose a distribution source with no warning. One of our weaknesses is we have focused on sales east of the Mississippi, thus limiting market expansion. However, this could be turned around as a future opportunity for market expansion. An easy way to expand our market is to establish a retail division and use infomercials through the cable television network to accept mail order/telephone order select product sales such as our new illuminated power wrench. However, a marketing effort of this nature would require careful consideration must be given to the geographical area so as not to alienate our primary segment customers. A move of this nature would require additional capital investment and careful analysis of this type of expansion would be necessary to minimize risk of project failure. The SWOT is useful in clarifying our marketing questions. The key is to address our shortcomings so as not to give the competition an upper hand and not raise concerns with our customers and capitalize on our strengths for continued success. 4. Create the market position for your product and service. Explain your rationale. Product positioning, according to the Encyclopedia of Business, involves the tailoring the entire marketing program to include product features, distribution, price, quality and service to meet the needs of the consumer within the specific market segment. In this manner, the product positioning is part of the overall market segmentation. Product position takes place in our distributors store, or target market segment and tells us how we can strive most effectively in that market segment against our competition which are also present on display. The key is to understand the consumer perceptions of the product and the marketing behind it. Quality, reliability, affordability, unique features, benefits to the customer is just a few attributes of product positioning. According to Lacobucci (2012) positioning is often about modifying the four P’s of marketing (position, price, place and promotion). In the case of our company, our reputation is a reflection of the position to provide a quality product at a competitive price while leading the market in innovation. Our company performance is attributed to the quality of our employment staff. Our employees are at the core to our success. We have established core values for our company’s work force by creating a positive work culture with recognition of the whole person concept. The strategic leadership from the top on down to the employee fosters productivity with reward and recognition to enhance their performance in support of the company operations to include our marketing efforts. Thus the positive and proactive personality of our company in meeting its marketing objectives is a direct reflection of the quality of every member of the Blue Steel Tool Team. As we continue to grow and develop products for sale, we position our products at a distribution sales point or market segment with the greatest customer exposure for maximum market penetration. We will service our product to the satisfaction and benefit of the customer so as not to jeopardize customer confidence as well as the business relationship with our market segment. The product we create and the service we provide are a direct reflection of not only our company, but that of our distributors. Our products are designed to meet the working needs of our professional as well as consumer clientele with a level of quality that meet or exceed expectations at the best value. References Lacobucci, D. (2012) Marketing Management: 2012 custom edition. Mason OH Market Segment Defined Retrieved from http://www. businessdictionary. com/definition/market-segment. html Morley R. (2006), Trumpet Print Edition: The Death of American Manufacturing, February 2006 Retrieved from http://www. thetrumpet. com/index. php? page=article&id=1955 Reference for Business Product Positioning: Encyclopedia of Business, 2nd ed. Retrieved from http://www. referenceforbusiness. com/small/Op-Qu/Product-Positioning. html Target Market Defined retrieved from http://www. businessdictionary. com/definition/target-market. html

Factors Affecting Development

Skinner views are that children learn language through imitation, and they copy from how their parents talk. He thought that children learn mostly through positive and negative reinforcement. When an adult feels as if the child is learning how to say a word from their babble such as ‘baby’ they will repeat it continuously so that in the end result the child will learn how to say the word. (6-12 months) Bowlby thought that a mother and a new born would need to bond with close contact for a good long term development.His views were that babies wanted to be close with the main parent/carer at all times to feel safe and when it was achieved, the babies constant need for attention would stop. When the baby is put in a new environment or separated from their main carer they will feel unsafe and start their crying for attention so they can be close with their carer again. This theory is called ‘attachment’. (0-3 months) Darwin believed that children were born with basic emotions; babies learn appropriate emotional responses from watching other people around them and observing how they react to things.They check their parent’s facial expressions or body language before responding positively or negatively to a situation (Squire 2007:105). (0-3 months) Schaffer views were that there were three stages of development in infancy, in stage 1 it showed that the baby was more drawn to people than inanimate objects and would smile more around a human than if left with inanimate objects like toys. In stage 2, the baby will be around 3 months and will be able to recognize the difference between their parent/carer and other strangers, babies may not mind being held at this stage because they’re too young to see the strangers as a threat.In stage 3, around 6 months a baby will form a stronger bond with their main caregiver and will try to seek attention. The child may become distressed when their carer is out of sight and will also cry around strangers because they may be scared. (0-3 months) Piaget believed that children learnt through first-hand experience and discovering things and exploring rather than just being told or shown. He thought that that the parents/carers should make sure that they are providing resources to help the child develop further.Letting children play freely will benefit the child as long as there are boundaries put in place to make sure it is safe for the child to explore e. g. if the child was playing outside in the garden, they will need to be supervised because they may hurt themselves or eat something they shouldn’t. The gates should also be checked to make sure that the child can’t get out. (1-2 years) Vygotsky believed that the level of development for a particular child was known as ‘the zone of actual development' but he thought that a child was capable of more if encouraged and assisted by their parents.The difference between the two levels was the ‘zone of pr oximal development ‘Adult intervention is necessary if the child is to move on from one level to the next. For example if a child is learning how to stand up without holding onto anything the next step would be for their parents to assist them in taking a few steps with them or providing a walker for the child to learn independently. (2-3 years) Factors affecting developmentSmoking while pregnant will cause the baby to have low birth weight and there will be a higher change of you’re the baby being stillborn. There will also be a higher chance of cot death. Smoking may cause miscarriage or premature birth. Smoking around new-born can affect new-borns even though they are outside the womb because they are inhaling second hand smoke, it can cause severe respiratory diseases and it can delay growth of their lungs.  (0-3 months)Children in the age range of 7-12 mostly socialize with their own gender because they go through the stage when they may dislike the opposite gend er and think there gender is the best. The NIH Study shows that girl’s brains develop before than a boys brain does and that girls reach maturity before boys. (7-12 years) Children living in better conditions are more likely to have a healthy lifestyle which affects their physical development, they will be more likely to be able to go on a lot of holidays, pursue hobbies like music and dance and art.They will be more likely to have the clothes that everybody wants and the school may be in an area where there are better schooling opportunities which will increase the chance of emotional stability. Children living in poverty are unlikely to have poor housing, diet and education. There may be higher crime rates in the area which would influence the children’s social and emotional behaviour. They may also have fewer chances to join clubs or join into hobbies they like or to go on holidays. (3-7 years)

The Importance Of The Marketing Budget - 1172 Words

The good news is marketing budgets have been on a steady incline for the past few years and have officially climbed all the way to 12 percent of company revenue. In fact, 2017 is the third consecutive year of marketing budget increases across the US and the UK—so it seems like everyone is spending more. The bad news is you still have to validate your marketing budget to your boss, which isn’t the easiest thing to do. If it’s time for you to take the plunge and justify your marketing budget to your boss, have no fear. While it might feel like an intimidating situation, there are things you can do to better support your spending and position your plan as the right route to take. To get your boss on your side, here’s how you can justify your†¦show more content†¦It’s an overwhelming time to be a marketer. In terms of justifying your marketing budget, it’s important to define each new trend you plan on funding and exactly how it will benefit the business. Showcase the latest trends, define how they will help you reach your target audience, and explain how that will then translate to more sales. Without this breakdown, you run the risk of leaving your boss confused as to why and how this is going to work. Ditch What Didn’t Work and Invest in What Did Before you start creating a new marketing budget, take a peak at the last one. Were there any strategies that worked really well? Were there any that didn’t perform the way you expected? Where could you have allocated money more wisely? These are things you need to know as they help you define where more of the budget should be spent and where you can cut costs. Perhaps your company used part of the budget last quarter to redo the website and start a blog. Did the blog help bring in any new customers? If it did, you should probably think about putting more of your budget into continued high-quality content. 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