Marketing and Finance

Introduction

Finance and marketing are two key ideas that are related. IMM Graduate School (2019) asserts that the marketing department oversees and fosters a company’s expansion, while the finance department collaborates closely with marketing to track market trends and oversee the effectiveness of marketing campaigns. A corporation is less likely to see positive outcomes from marketing campaigns if both departments operate in isolation, according to Mikepye (n.d.), who supports the relationship between the marketing and finance departments of an organization.

Question 1: Propose a budget for a marketing campaign for a new consumer product in your country

Concerning the assignment, the selected company is Agility Logistics Company, a pioneer in supply chain services, investment, infrastructure, and innovation with more than 45,000 workers across six continents (Agility, n.d.). It’s important to note that the assignment assumes that the company wants to start buying and selling electric vehicles in Kuwait. Due to the difficulty of breaking into new markets, a workable marketing campaign budget must be prepared to adequately cover all the projected costs and expenses made by the company in promoting its electric vehicle products. As the company has experience with emerging economies and an extensive network, the proposed new consumer product is buying and selling electric vehicles.

Agility Logistics would need to market the purchase and sale of electric vehicle products aggressively to raise awareness of its brand as a supplier of supply chains and a dealer of electric vehicles in Kuwait and around the world. A great marketing and advertising campaign necessitates extensive strategic planning, brilliant implementation, and a substantial financial budget, according to TALENT EDGE (2022). Agility Logistics Company must therefore be aware of how expensive it is to buy, sell, and market electric vehicles, as well as the requirement to develop a successful marketing campaign to spread awareness of its new product portfolio.

To have enough money to run the marketing campaign, Agility Logistics Company’s marketing team should effectively communicate with its finance department team about the advantages that will come to the company after the successful launch of its new business division (the purchase and sale of electric vehicles). According to Mikepye (n.d.), a cordial relationship between the marketing and finance departments is critical to successfully implementing a marketing campaign.

According to BIG COMMERCE (n.d.), marketing campaigns are collections of tactical actions that support a company’s goal or objective. They are frequently used for advertising a particular good or service and the brand as a whole. Due to their significance, campaigns must be carefully designed for the best outcomes. Also, knowing the marketing techniques, tactics, expenditures, and anticipated outcomes over time would be the foundation for creating a realistic marketing campaign budget. A marketing budget details every dollar a company plans to spend on advertising a linked project, product, or service (Conley, 2022).

Agility Logistics Proposed Marketing Campaign’s Budget

The following expenses would be included in Agility Logistics Company’s suggested marketing campaign budget: first, Agility Logistics needs to set aside money for market research. According to Worick (2019), market research assists a business in setting realistic goals and thoroughly understanding its target market and competition. Because of the significance of market research, Agility Company must be ready to spend money on market research to determine how competitive its EV brands are.

Second, the company must be prepared for costs associated with online customer surveys once Agility Logistics’ EV product line is launched. According to SmartSurvey, the value of online customer surveys is a terrific approach to connecting and interacting with potential customers (n.d.). Because of this, the Agility Logistics marketing team should budget an amount equal to consumer surveys to be conducted to assess its EV brands’ performance regularly.

Thirdly, Agility Logistics’ marketing division must budget money for advertising campaigns. The creation of advertisement posters, billboards, banners, brochures, and flyers, as well as Pay-Per-Click and paid advertising, gifts, product discounts, and shopping vouchers, are some of the ways the allocated funds may be used for advertising. Fourthly, the marketing division must set aside money to update its website. Fitzgerald (2021), for example, claims that the most frequent motives are to rebrand your website, boost traffic, produce more leads, and add functionality to enhance the user experience.

Fifth, the company’s marketing budget should include public relations expenses. Since the product is new, there is a need to raise awareness. Before introducing this new product line, Agility should organize an event to grab Kuwaitis’ attention to raise awareness of the sale of the EV brand in Kuwait. As an illustration, Agility should organize a Kuwait Motor Racing Competition in Al Ahmadi. In addition, starting a charitable foundation would have a lasting effect on Kuwaitis.

Sixth, influencer marketing expenses would be included in the marketing budget. As its target clients would link the brand with the chosen celebrity, the corporation needs to collaborate with Kuwaiti celebrities who can assist in marketing its EV brands if it wants to grow its fan base. The expenditures associated with the EV’s actual launch must also be considered. I suggest a virtual/online launch that would be commissioned on Kuwait News TV and KTV 1 Channels for an efficient product launch. Mezyk (2023) claims that by holding a virtual product launch, a business is better positioned to increase website traffic and the visibility of the product being introduced.

Table 1: Annual Agility Logistics Company Marketing Budget

Table 1 shows the proposed annual marketing expenditure for Agility Logistics’ new product portfolio (EV brands) that will be launched in the Kuwaiti market. The budget follows the general guideline for creating marketing budgets, which states that big organizations should aim for 5-10% while small businesses should aim for 2-5%. (BDC, n.d.). Due to Agility Logistics’ size, their suggested marketing strategy falls within the 5–10% range. Interestingly, the net revenues for the Agility Logistics company in 2022 were $2.8 billion, according to Trade Arabia (2023). Due to this, the company’s suggested plan would cost it about $1.6 million, or about 5.5% of the total annual revenue of the company in 2022.

Question 2: Application of ‘communication model’ to Agility Logistics Marketing Campaign

A communication model is a methodological description of the process that aids in comprehending the human communication process (Indeed Editorial Team, 2023). Importantly, communication models represent the process graphically and theoretically, aid in the simplification of the intricate process of communication, and specify where and with whom it takes place. Moreover, if the marketing process lacks an efficient communication model, the Agility Logistics Company’s estimated marketing budget is pointless and a waste of time and resources. Having stated that, I opt for the interactive communication model, more specifically the Osgood-Schramm model, out of all the various communication models.

Electric vehicles, a new consumer product from Agility Logistics Company would require extensive marketing activities. Also, the marketing team would anticipate receiving fast feedback on how their marketing campaign message would be received and perceived. All of this is can be made feasible by the chosen communication model, the Osgood-Schramm model, because it permits two-way communication between the sender and recipient of a message (Smith, Hendricks and Chapel, n.d.). As a result, the Agility Logistics Company should use it as the basis for its marketing campaign for the proposed new product line (purchase and sale of electric vehicles).

According to Indeed Editorial Team (2023), this model performs three crucial marketing campaign-related tasks: encoding, decoding, and interpreting. This model includes the sender, the message to be transmitted, the channel utilized, the recipient, and the feedback. This enables all parties participating in the communication process to participate fairly and on time. Sender, receiver, message, feedback, and semantic barriers are the main elements of this communication paradigm, according to Smith, Hendricks, and Chapel (2022). The Osgood-Schramm model’s characteristics can be applied to the Agility Logistics Company’s marketing campaign in the following ways. Its successful application would raise much-needed knowledge about Agility’s new product.

First, the Osgood-Schramm communication model begins with the message’s availability for transmission (Cuofano, 2023). Because the company wants to introduce a new product to the Kuwait market, Agility Logistics’ marketing campaign will be digital. The slogan for the new product marketing campaign is “Choose EV, Buy EV, Love Kuwait.” The message of this marketing campaign is persuasive enough to convince Kuwaitis to think about buying EVs. As a result, the message to be delivered to the company’s target audience in relation to the Osgood-Schramm model’s application to the Agility Logistics marketing campaign, “Choose EV, Buy EV, Love Kuwait,” is: “Choose EV, Buy EV, Love Kuwait” (Kuwaitis). Interestingly, this message is promotional in that it supports sustainability in Kuwait and promotes the company’s EV brand. Together, these factors raise awareness of the importance of preserving environmental consciousness by purchasing clean, eco-friendly EV products.

Regarding the Osgood-Schramm communication model’s channel component, the well-planned marketing campaign message would be communicated and disseminated via various traditional and digital platforms. I suggest using popular social networking sites like Instagram, Facebook, Twitter, and TikTok. Using social media networks to promote the business’s new EV product line is a promotional activity. Also, the new EV product line from Agility Logistics company would be promoted on Kuwait News TV, KTV 1, Al-Kout TV, and Alwatan TV Plus.

In addition, I suggest advertising Agility Logistics EV on YouTube. The campaign slogan/message for the company’s product introduction and marketing would be “Choose EV, Buy EV, Love Kuwait,” It would be captioned in any company postings on its website and social media sites. I suggest using influencer marketing because Agility primarily uses its media center and rarely uses social media channels. In this regard, Agility Logistics must collaborate with Kuwaiti social media star Noha Nabil, who promotes premium companies on social media (Gordon, 2019).

Thirdly, the marketing campaign for Agility Logistics Company’s EV product line would target Kuwaitis with high incomes and affluence to satisfy the receiver component of the Osgood-Schramm communication model. Notably, this demographic will be targeted since they can afford luxury EV brands, which are pretty pricey and a sign of high class. Fourth, to address the Osgood-Schramm communication model’s semantic noise barrier, Agility Logistics must effectively communicate the marketing campaign message in Arabic and English. This will ultimately ensure that a large market hears the campaign message because the employment of these two languages will cater to both Kuwaiti Arabs and Non-Arabs.

Last but not least, regarding the feedback element of the Osgood-Schramm communication model, the effectiveness of the suggested marketing campaign would be evaluated based on the negative and positive comments made on its social media platforms. In addition, the number of likes, shares, and followers would provide insight into how the intended market has accepted the company’s EV brand. Agility Logistics Corporation has the opportunity to do additional market research and reduce marketing expenses thanks to the feedback from its online target customers. Feedback is the Osgood-Schramm communication model’s climax, according to Smith, Hendricks, and Chapel (n.d.). The preceding justifications make it abundantly evident that Agility Logistics Company has thoroughly utilized the model in its marketing effort. Using the Osgood-Schramm communication model in Agility Logistics’ marketing campaign for its new EV product portfolio has clarified communication’s importance in business. Business communication helps to express factual and clear statements regarding strategy, customer service, and branding and reflects a consistent message catered to its audience (Indeed Editorial Team, 2023).

Promotion Activities in Agility Logistics’ Marketing Campaign

First, the marketing campaign for Agility Logistics has used content creation as a promotional activity. Agility Logistics must engage in content creation and promotional activity in digital marketing campaigns to raise engagement with its digital/social media clients and attract significant attention to its social media posts and blogs. Indeed Editorial Team (2022) claims that businesses are using content production as a more and more common type of web promotion to raise brand awareness and familiarize the public with their products. Agility will therefore be able to write and arrange its articles, posts, and blogs in a captivating style that appeals to its target clients thanks to this promotional activity.

Second, influencer marketing has been used as a promotional strategy in Agility Logistics’ marketing campaign. Notably, the Agility Logistics marketing campaign’s use of influencer marketing as a promotional strategy successfully reaches more social media users in your target market and creates a brand that consumers can relate to (Indeed Editorial Team, 2022). A company’s brand can be strengthened by working with influencers, and audience engagement, conversion rates, and brand reputation can all be improved, says Grin (n.d.). As a result, Noha Nabil’s involvement would help Agility Logistics sell more EV brands in Kuwait.

Last but not least, social media advertising has been used as a promotional activity in Agility Logistics’ marketing campaign. According to Indeed Editorial Team (2022), Agility Logistics can directly market the EV product line to potential customers by using social media advertising as a promotional activity in EV product launches and marketing campaigns. Agility Logistics can also monitor engagement through the number of likes, comments, shares, and followers.

Conclusion

The report analysis has made it clear that finance and marketing departments must comprehend the advantages of a marketing plan to justify and release the investment/ marketing money to support their strategy. Due to these factors, any firm must make sure that marketing and finance have the same commercial vision and recognize each other’s contributions to manage resources effectively, track sales trends, and budget effectively for campaigns. To ensure a new product’s launch and successful performance in the market, creating product awareness is a crucial step that requires executive planning. Importantly, the budget for a marketing campaign should represent 10% of the company’s yearly revenues. A combination of different social media platforms and other forms of advertising is essential for the success of a marketing campaign to launch a new product.

References

Agility, n.d. About Us. https://www.agility.com/en/

Anna Fitzgerald, 2021. Why Redesign a Website? https://blog.hubspot.com/website/why-redesign-a-website

BDC, n.d. What is the average marketing budget for a small business? https://www.bdc.ca/en/articles-tools/marketing-sales-export/marketing/what-average-marketing-budget-for-small-business

BIGCOMMERCE, n.d. What are marketing campaigns? https://www.bigcommerce.com/ecommerce-answers/what-are-marketing-campaigns/

Eliza Smith, Beth Hendricks and Lesley Chapel, 2022. Osgood-Schramm Model of Communication. https://study.com/learn/lesson/osgood-schramm-model-communication.html

Grace Gordon, 2019. Greek Mythology Comes to Life – Starring Versace’s Finest, Of Course. FLAIR. https://www.savoirflair.com/fashion/427074/versace-gorgon-claw-ironic-virya-collections-video-shoot

Grin, n.d. Why influencer marketing is an important part of today’s businesses. https://grin.co/blog/why-influencer-marketing/

IMM Graduate School, 2019. The relationship between marketing and finance. https://imm.ac.za/the-relationship-between-marketing-and-finance/

Indeed Editorial Team, 2023. The importance of Business communication: 6 reasons why. https://www.indeed.com/career-advice/career-development/importance-of-business-communication

Indeed Editorial Team, 2023. What is the communication model? (with how it works). https://uk.indeed.com/career-advice/career-development/the-communication-model

Indeed Editorial Team. (2022). 13 types of promotional activities to grow your business. https://www.indeed.com/career-advice/career-development/promotional-activities

Megan Conley. (2022). How to manage your entire marketing budget (free budget planner template). https://blog.hubspot.com/marketing/how-to-manage-marketing-budget-free-budget-templates#:~:text=A%20marketing%20budget%20outlines%20all,domain%2C%20and%20marketing%20automation%20software.

Mikepye, n.d. Why Collaboration Between Marketing and Finance is Essential for Growth. https://mikepyemarketing.com/why-collaboration-between-marketing-and-finance-is-essential-for-growth/

Sara Mezyk, 2023. 6 Creative ideas for a product launch event. Tag Venue Blog. https://www.tagvenue.com/blog/product-launch-event-ideas/

SmartSurvey, n.d. 10 Advantages of Online Surveys. https://www.smartsurvey.co.uk/articles/10-advantages-of-online-surveys

Trade Arabia. (2023). Supplying the foundation of the future. https://www.tradearabia.com/news/IND_408014.html