Executive Summary
Martial art has become very popular with many people because of various reasons, some of which include: physical fitness, defending oneself against an attack and spiritual reasons among others. Initially, many considered this practice to have the sole purpose of self defense but since it emerged that it could be used for other purposes, more and more people are engaging in it.
This calls for more facilities and resources in order to meet this sky rocketing demand. The demand is not only among the adults but also the young children. An example of an institution that offers this service to children is the Power Mixed Martial Arts School for kids.
In today’s world, millions of kids are learning martial arts at the martial arts schools that are located in their neighborhoods. Today, Martial Art has emerged to be a business rather than a noble discipline. Managing a mixed martial arts school for kids does not require one to have masters in business or to invest large capital. However, it does call for one to plan well, make decisions carefully and be committed to the business.
Choosing an advertising plan that is effective is the key to running a Mixed Martial Arts School. An effective advertising plan attracts a higher percentage of kids. It also ensures that the drop-out rates are kept as low as possible. It is important that the managers provide their target audience with sufficient information in order for them to make decisions wisely. The following is a research paper for Power Mixed Martial
Arts School for Kids, which is located at din, Chicago. This Mixed Martial Arts School offers kids such martial arts such as judo, tae kwon do, and muay Thai, aikidi and jui jisu.
Situation Analysis
Effective Mixed Martial Arts School for kids advertising plan must be deep-rooted in a factually based situation analysis. Situation analysis for mixed martial arts for kids advertising plan enables the owners to satisfy the needs of the kids. Successful martial arts situational analysis strategies are largely dependent on the firm’s strategic capabilities i.e. how well the company fits within its operating environment.
While carrying out situation analysis, the important tenets to consider include: company description, SWOT analysis, and industry analysis, target market description which looks into market segment and characteristics and finally marketing mix.
Company (product / service) description
Martial art refers to a practice that is undertaken by all classes of people including kids. In martial arts classes, kids are usually taught combat skills by a skilled trainer. Martial art as a practice has been in existence for many years.
However, the practice is now gaining prominence, particularly in Europe and the United States. Currently, martial arts schools are found on every corner in the West as opposed to the past when they weren’t around much. The main artists who have made efforts to enhance the presence of martial arts in the West include Bruce Lee and Bill Wallace among others.
Martial arts have enabled people to learn combat techniques. Practicing martial arts plays an important role in enabling people to achieve a healthy life. In order for one to master martial arts, a high level of discipline and perseverance is required. One is also required to be fully committed. It is also a source of income for many martial school owners across the globe.
With regards to Power Mixed Martial Arts School for kids which is located in Chicago, the managers should consider the following; the product features i.e. whether the business is operating profitably.
The managers should also consider the company’s effectiveness i.e. whether the needs of the kids are fully addressed. For an organization to be considered effective, it must be in a position to cater for the client’s requirements. Managers can achieve effectiveness in a martial school by identifying the key drivers of uniqueness.
Industry analysis
The managers of Power Mixed Martial Arts School for kids should be in a position to evaluate the kid’s readiness to pay for additional uniqueness. With this regards, the Power martial arts school managers should ensure that the added uniqueness adds more value to the kids. The managers should ensure that the reputation of their martial arts school is good.
Usually, the manner in which an organization performs its operations influences its client’s base. Thus, an organization that has poor reputation does not attract and keep clients. If one teaches a good martial arts program that attracts kids, direct marketing might work. Direct marketing refers to the act where one kid recommends to another a martial arts school.
A kid thus invites another one to attend a martial arts school. Direct marketing works well for mixed martial arts school because teaching martial arts is usually a personal business. Thus one attracts kids and keeps them by letting them have the idea that their individual needs can be met (Lyndon, 2008, P. 144-168).
Those aspects which enhance the client’s services should be considered as part of important details of industry analysis. The martial arts school managers should aim at building trust relationships with all the stakeholders. The informal networking is crucial as far as the martial arts school is concerned.
The managers of Power Mixed Martial Arts School should therefore establish networks with the local population and be involved in various community projects. By working closely with the parents, the Power Mixed Martial Arts school managers can gain trust and in turn attract large number of kids in their schools (Lyndon, 2008, P. 144-168).
Target market description
Competitors’ analysis should be carried out as a way of ensuring that the company’s products are robust and that the company benchmarks itself against its rivals. Robustness has the effect of making a firm’s product to be distinct from other comparable products in the market.
Robustness usually makes it hard for the rivals to imitate a firm’s products. Power Mixed Martial Arts managers should strive to offer unique and complex services to their clients. The managers should also ensure that the company benchmarks against its rivals in order for the firm to perform exceedingly well than its rivals (Lyndon, 2008, P. 144-168).
Target marketing helps in simplifying the tasks of distribution, pricing and also promotion. It is also more effective in terms of cost. It is no longer practical to think that doing a business that would target everyone would bring more profit, hence the need too have a target market. The market could be identified in terms of gender, age and social status among others.
Although narrowing down to a specific target group take a lot of effort, it pays in the long run because such companies are likely to meet their objectives. In the case of Power Mixed Martial Arts School, their target group has already been identified as the young children and therefore they should try to find out how they can offer children friendly services.
Market segments
Closely related to target market is the market segment. Clients are the main aspect of market segments. The organizational marketing strategy of this framework is shaped by ensuring that the clients get value for their money, seeking for clients’ information sources e.t.c. Market segmentation refers to the act whereby, managers categorize clients into various groupings based on their characteristics.
The segments that a company chooses to target should have certain characteristics for example, they should be large enough to be targeted for specific products, they should be reachable through different communication means and also, they should have certain unique needs that would be met best when offered separately.
Market segmentation enables the managers to serve the clients in accordance with their status, age, gender and geographical location among other factors. With regard to value, clients are usually set to pay for a service which provides value unto them.
The price is thus the main feature and therefore, the Power Mixed Martial Arts School managers must be in a position to manage the martial arts prices. The administrators should ensure that the martial arts prices are relatively low (Lyndon, 2008, P. 144-168).
The search for client’s information sources is the act of providing clients with detailed information about a given service. The managers should ensure that the kids as well as their parents are provided with full information about the school in order for them to make informed decisions (Lyndon, 2008, P. 144-168).
Market characteristics
The climate i.e., the environment that a firm operates within should also be checked. Both the internal and external environments have an influence on the Power Mixed Martial Arts School for kids.
The external environment that may affect the Power Mixed Martial Arts School for kids includes political influence, economic factors, technological factors and cultural factors. Political factors which may affect Power Mixed Martial Arts for kids involve such aspects as taxation policies, state laws and other state requirements.
Economic environment that may affect the Power Mixed Martial Arts School for kids includes the general infrastructure among others. Cultural environment that may influence the operations of Power Mixed Martial Arts School for kids includes such aspects as the population demographics, religion e.t.c.
Technological environment that may affect the operations of Power Mixed Martial Arts School for kids includes new discoveries, the rate at which the equipment becomes obsolete among others. With regards to technological advancements, Power Mixed Martial Arts School for kids should decide whether to become a market leader or a market follower (Lyndon, 2008, P. 144-168).
SWOT analysis
In order for the Power Mixed Martial Arts School for kids to utilize its resources efficiently in a dynamic business environment, it should develop a strategic plan and focus. A strategic plan and focus plays an important role of ensuring that an organization gains competitive advantage over its competitors. With this regards, Power Mixed Martial Arts School for kids should consider using a SWOT analysis.
A SWOT analysis refers to a strategic plan and focus tool that is used to evaluate a firm’s strengths, weaknesses, opportunities and threats. The SWOT analysis for Power Mixed Martial Arts School for kids must first determine an effective advertising plan.
The strength refers to areas that a firm performs best i.e. those aspects which provide an organization with competitive advantage. Power Mixed Martial Arts School’s competitive advantage is based on the fact that it provides mixed classes as opposed to most martial arts schools that offer popular disciplines only.
Also, the strong ties that Power Mixed Martial Arts School for kids has with the local community are strength (Jugenheimer & Kelley, 2009, P. 133-155).
Weaknesses refer to the characteristics of a firm that are disadvantageous. With regards to Power Mixed Martial Arts School for kids, the following are some of the limitations that make it hard for the organization to achieve its goal i.e. lease cost that is above average in Chicago area among others (Jugenheimer & Kelley, 2009, P. 133-155).
Opportunities refer to the chances that an organization has to perform better and attain its objectives. Opportunity plays an important role as it enhances the growth of a firm as well as its profitability.
The following represents the main chances that Power Mixed Martial Arts School for kids have; an increase in population in Chicago State resulting to an increase in demand for martial arts classes, massive investments in gyms and other training facilities. These make Power Mixed Martial Arts School for kids to attract and retain a large number of kids (Jugenheimer & Kelley, 2009, P. 133-155).
Threats aspect of SWOT analysis refers to external influences that hinder an organization from accomplishing its goals. Threats usually make it harder for an organization to achieve growth and profitability.
The following are the main aspects that prevent Power Mixed Martial Arts for kids from achieving its objectives; massive Advertising campaigns by the rival firms hence decreasing the company’s market share among others. Such competitors include the Degerberg Academy, POW, Jiu-Jitsu Institute among others (Jugenheimer & Kelley, 2009, P. 133-155).
Marketing mix
After Power Mixed Martial Arts School has decided the competitive marketing strategies to adapt, the organization must proceed to select an ideal marketing mix. Marketing mix refers to a combination of marketing tools that the firm can blend to create an instant response in the target market.
Thus, Power Mixed Martial Arts School for kids must do everything to influence the demand for its products. The many possibilities that the Power Mixed Martial Arts School for Kids can use in order to achieve its marketing goals include price, product, place and promotion (Jugenheimer & Kelley, 2009, P.133-155).
Marketing mix requires that the product in question be well presented to the target audience. It should be attractive and appealing to the people making them to desire to buy them. The way a product is presented relates directly to the number of sales that are going to be realized.
With this in mind, Power Mixed Martial Arts School for Kids should work towards packaging their services and presenting them in an appealing manner. One way could be by showing people the many advantages of learning martial arts, which include health and defense reasons among others.
They should emphasize the advantage of learning these important skills at such a tender age. It is good when children are trained to be n control of their lives through taking part in such courses.
Price as an aspect of marketing mix is a key factor in marketing a product. The price of a product is what greatly determines the number of sales of that particular product. The price that is set for a particular product should be reasonable and affordable by the people one is targeting.
It should not be extremely high as many people may not be able to afford but on the hand, it should not be very low because people may not have confidence in the product and may dismiss it as sub standard. Power Mixed Martial Arts School for Kids should consider setting affordable charges to kids interested in martial arts in their institution.
Place entails timely delivery of the products where they are needed. Power Mixed Martial Arts School for Kids should endeavor to deliver quality services to the kids when they choose to attend the institution. They should stick to the time that a learning a particular skill will take and should not take advantage of the children by extending the courses. They should be careful to give them what they have said they will offer.
Finally, Power Mixed Martial Arts School for Kids should carry out promotion in order to inform people about their products and why theirs are superior to the rest in the market. Promotion would help the school to persuade the audience concerning the need to buy their product because of its quality. Promotion would also help in increasing sales, i.e., more kids would enroll in the school.
Competitive Analysis
It is important for any company to do a competitive analysis of their rival companies in order to use the information for their own good. Knowledge about their competitor helps the company to get important information about the rival company, which they can use as a tool to making more profit. This knowledge also helps in forecasting the rival’s plan of action, which is also advantageous to the company.
With this in mind, a company is able to determine the rival companies that are worthy competing with and also, they are able to predict the reaction of such a company in case they take certain moves. Knowledge about competitors needs to be in depth and not just casual because casual knowledge is not beneficial to a company.
The competitor’s current strategy should be considered. There are various avenues that one can use to get information about the competitors’ current strategies. They include: annual reports, information they give to the press and interviews done by analysts among others.
In addition to this, one should also find out what the competitors are actually doing. They may be involved in activities such as campaigns on promotions of their good and services and also merging with other companies.
Another important thing is the competitors’ objectives. One should find out what the competitors’ are focused on as this will help to foresee the possible reaction to any move that the company will make.
Some companies have short term financial objectives, while others have other objectives which may not be necessarily short term. They may include rapid growth or becoming a leader in a certain area in the market for example, being a leader in technology.
Looking at the competitors assumptions may also help in the growth of a company. There may be negative assumptions held by the competitors concerning selling of certain products that may not be necessarily true. Such assumptions may emanate from issues such past failure and low returns among others.
These may make the company opt not to sell such products and hence, another company can take advantage of that, learn from their competitors past mistakes and embark on tasks that would lead to their success.
It is important for Power Mixed Martial Arts School for Kids too carry out a competitor’s analysis as they will be informed of their competitor’s strategies, objectives as well as assumptions. This information should be used to improve their services which would increase their popularity among the people.
Advertising Objectives
Advertising objectives include information advertising and persuasive advertising.
Persuasive advertising involves building brand preference by persuading consumers to always buy a firm’s products i.e. to switch to a firm’s brands. Power Mixed Martial Arts School for kids should come up with adverts which remind the kids that martial arts play an important role as far as their physical fitness is concerned.
In this form of advertising, the school should aim at enhancing the industry demand for its martial arts. In creating persuasive beliefs, Power Mixed Martial Arts School for kids should consider innovation and flexibility. With the information overload in the society, the Power Mixed Martial Arts School for kids should always be unique and original in their persuasive advertising (Rowse & Fish, 2005, P. 313-332).
Information advertising tells the market about new products suggests new uses for a product or informs the market about the price change. Clients usually rely on the information for their buying behavior.
Thus, only a few kids would have information about Power Mixed Martial Arts School for kids if there is no advertising. The information should include such aspects as the specific location of the Power Mixed Martial Arts School, the price distribution among others (Rowse & Fish, 2005, P.313-332).
Communication goals
Communication in business is aimed at persuading the target audience to act in a particular way. In so doing, the company benefits from the audience by making profits and also achieving certain goals which are beneficial to the company.
Communication is therefore important for any company which wants to grow and also retain its loyal customers. Power Mixed Martial Arts School for kids must do everything to influence the demand for its products. Advertising entails creating awareness about a company’s product with the aim of influencing people to buy the products and also maintaining close relationship with them.
Advertising can be used as one of the effective ways of communication. Power Mixed Martial Arts School for kids should consider developing advertising strategy. Two factors are important while coming up with an advertising strategy. There has to be an advertising message and media to be used to convey the message.
The schools’ advertising message should be appealing, believable and distinctive for kids to think about it. A good advertising media is one that reaches more consumers, exposes the product to the target markets frequently and impacts the qualitative values of a message on the consumer. With this regards, Power Mixed Martial Arts School for
Kids can use such media types as newspapers, radio, bill boards, internet, and posters e.t.c. for its advertising (Rowse & Fish, 2005, P. 313-332).
Purchasing behavior
Since Power Mixed Martial Arts School is faced with many competitors, it requires aggressive advertising campaigns (Rowse & Fish, 2005, P. 313-332) Power Mixed Martial Arts School for kids should therefore consider evaluating the effectiveness of its advertising strategies. Advertising effectiveness can be copy testing or sale effects.
It is important for the school also to incorporate the views and opinions of its stakeholders while creating an advert. The company can do the same after an advert is done. The Power Mixed Martial Arts School for kids can measure sales effects by comparing past sales before Advertising was placed and the sales level after Advertising is placed (Rowse & Fish, 2005, P. 313-332).
Positioning
Power Mixed Martial Arts School for kids cannot survive if there is unsteady influx of new kids. It is therefore necessary that the company positions itself in search for a competitive advantage. Product positioning entails the manner in which the consumers identify themselves with the firm’s product.
Positioning deals with how much the company’s products have occupied and influenced the mind of the people. While talking to the people about a company’s product, it should endeavor to capture them psychologically so that they are satisfied with the products and are able to dismiss the rest and settle on the ones that they are convinced in their mind are the best.
With this regard, Power Mixed Martial Arts School for kids should strive to ensure that its positioning statement occupies the minds of the kids. An example of positioning statement that the Power Mixed Martial Arts School for kids can use is creating a sound foundation for kids’ (Rowse & Fish, 2005, P. 313-332).
Creating a creative advertising strategy
Product Concept
The advertising concept is crucial to the effectiveness of an advertisement. Sending incorrect message is killing oneself. Indeed, it has the effect of killing the sales of a particular product.
Power Mixed Martial Arts School for kids should know that, no matter how well the advertising message is crafted, it will not achieve its advertising goals if the audience becomes confused. In order to create a creative advertising strategy, the following should be considered i.e., advertising goals, advertising budget, message strategy and media strategy (Smith & Pulford, 1999, P. 79-96).
Power Mixed Martial Arts School for kids should decide whether its goals are survival, maximizing profit, increasing market share, becoming a market leader among others. The most important aspect that the Power Mixed Martial Arts School requires considering when establishing its marketing objectives is that, the goals must not conflict with each other.
If the school has multiple marketing objectives, then the objectives must be consistent with each other. Due to the intense competition that the Power Mixed Martial Arts School faces, it should set survival as its key advertising goal.
With this regard, the company should strive to change the kid’s needs. It should also embrace the adoption of information technology in order to keep in pace with the dynamic business environment. To keep its plan going in this case, the Power Mixed Martial Arts School for kids should consider lowering prices with a view to increase demand.
This will play an important role in increasing the company’s market share and thus enhance its survival goal. Clear advertising goals thus provide a company with a logical sequence which if correctly followed, enables the firm to achieve its overall objectives (Smith & Pulford, 1999, P. 79-96).
The second aspect that should be considered in creating a creative advertising strategy is media strategy. Media strategy refers to the process that shows how the investments in space and time facilitate the attainment of advertising objectives.
With this regard, the management of Power Mixed Martial Arts School for kids should select the target audience, specify media objectives and select media categories and vehicles (Smith & Pulford, 1999, P. 79-96). For media strategy to be effective, the target audience should first be identified i.e. the company should first connect to the audience emotionally.
Target audience
As opposed to mass marketing which has no specific group it targets, target marketing deals with specific group that has been identified as the target audience. Target audience is a large group of people that the organization singles out for its promotion or advertising campaign.
In this regard, the management team of Power Mixed Martial Arts School for kids should bear in mind the fact that target audience is potential audiences. This is because the firm is not absolutely sure that the advertising message will indeed reach the intended audience. Knowing the consumers is the first step of a successful advertising plan.
Failure to pinpoint the target audience precisely can result in wasted exposures i.e. it can expose ‘no purchase’ customers and leave beside the prime customers. Failure to have a target audience can also result to the emergence of another company that would meet the target audiences’ specific needs, hence leading to loss of customers. The target audience in this case is the kids.
Communications Media
The Power Mixed Martial Arts School for kids must decide on the ideal method that it can use in order to approach the market. The Power Mixed Martial Arts School for kids can use the following existing market strategies in approaching the market i.e. undifferentiated marketing, differentiated marketing and concentrated marketing (Smith & Pulford, 1999, P. 79-96).
Undifferentiated marketing is also known as mass marketing and involves a situation in which a company chooses to overlook the existing market segments and in turn approaches the entire market with only one type of product. The Power Mixed Martial Arts School for kids may decide to offer tae kwon do only, judo only, muay thai only or jui jisu only (Smith & Pulford, 1999, P. 79-96).
Differentiated marketing is also known as segmented marketing and it involves a situation in which a company chooses to target various market segments by designing different offers or marketing mix for each segment.
The Power Mixed Martial Arts School for kids could be having a differentiated market as follows; Brazilian Jiu Jitsu for those kids who care about improving their flexibility and core strength, Muay Thai for kids who aspires to achieve body fitness among others (Smith & Pulford, 1999, P. 79 96).
Concentrated marketing is also known as niche marketing and it is ideal in a situation where a company has limited resources. The Power Mixed Martial Arts School for kids may concentrate on a small share of market and still hit its target.
Thus, it may decide to open only a few branches or have branches all over the state. Power Mixed Martial Arts School for kids may gain foothold of a strong competitors market by using niche marketing strategy (Smith & Pulford, 1999, P. 79-96).
Media Objectives
After the target audience is pinpointed, the management team of Power Mixed Martial Arts School for kids should proceed to specify the media objectives.
Such aspects as the proportion of target audience that should be reached by the advertising message, the frequency that the target audience should be exposed to the advertisement, allocation of advertising budget over time among others should be considered (Smith & Pulford, 1999, P. 79-96).
Media Plan
Selecting media categories as well as the vehicles is an important strategy. This activity is aimed at selecting the media category that will convey the advertising message effectively.
The Power Mixed Martial Arts School for kids may use a multimedia campaign strategy instead of using one media category. After identifying the best media category, the school management team should specify the medium that conveys the message to the intended audience i.e. the kids.
The effectiveness of the medium should be considered while selecting a specific media (Smith & Pulford, 1999, P. 79-96). The school should also bear in mind that different stages of growth, call for different advertising channels. It should therefore look for the channels which work best for it at any particular stage.
Certain media categories are effective when advertising is done at certain times of the day or during the airing of certain programs. It is vital to put into consideration what channels and also the timing of the advertisement in the case of media such as radio and television. The choice of media is also dependent on the amount of resources that Power Mixed Martial Arts School for kids is willing to spend.
Communication effectiveness
The other aspect that is involved in creating a creative advertising strategy is message strategy. The main purpose of message strategy is to communicate the goals of the advertiser and the steps that are involved in attaining those goals.
The message strategy is concerned with what an advert communicates and the manner in which it is communicated. It is important for the management team at Power Mixed Martial Arts School for kids to be creative in order to create an effective message.
The following are the main steps that are involved in designing a creative advertising strategy i.e. determining the target audience, knowing the communication goals, designing the message appeals or contents, creating the message format, selecting the message source, selecting the advertising cannel and allocating the resources.
Creativity plays an important role in informing, persuading and reminding the audience. Apart from creativity, Power Mixed Martial Arts School for kids needs to look at the colors that would be appealing to the target audience.
Children are usually attracted to bright colors. However, as they do this, caution should be taken to avoid using colors similar to those of their rivals. They should be creative and come up with a good color combination that is unique so that their products look original.
Advertising Message
In producing an advertising message, the major selling idea should first be considered. The major selling idea has the effect of attracting attention, producing a reaction and setting the company’s product apart from the competitors’ products if it is presented uniquely.
A successful message strategy can create feelings and emotion. The value aspect of an advertising message should include numerous appeals in order to excite or motivate the target audience.
Some of the appeals that can be used in case of the Power Mixed Martial Arts School for kids include health and efficiency. The advertising message should be arranged in an orderly manner for presentation. Usually, the advertising message is structured in sentences, words and paragraphs (Smith & Pulford, 1999, P. 79-96).
A slogan is normally included. This is a short statement that is repeated and is intended t position the product in the audiences’ mind. The slogan should contain information that captures the attention of the audience and convinces them to buy their product.
Testing and Evaluation
Advertising Research
Usually a formal research is carried out to determine whether or not the proposed advertising will be successful. The two main purposes of advertising research are; to provide the advertisers with concepts concerning advertising content and to investigate the effectiveness of the existing advertising.
Advertising research aims at eliminating the advertisements that may not work. Research should be conducted prior to investing in airing adverts or printing adverts.
The management should make efforts to determine whether the advertising expenditures are justified or not. This is so especially when a substantial amount of money is invested in advertising. Accordingly, the advertising message should be tested to determine whether it is effective or not.
The act of measuring the effectiveness of a message is costly and difficult. However, the value obtained from conducting this task outweighs the drawbacks. A formal research plays an important role in enabling the advertisers to know whether the proposed advertising message is effective or not.
Also, a formal research enables the advertisers to know on what to improve in their future advertising plans. Advertising research thus can enable the management team of Power Mixed Martial Arts School for kids to increase the advertising’s contributions in order to achieve marketing goals and also yield a high return on investment (Rowse & Fish, 2005, P. 313-332).
Effectiveness Measurements
Usually, there are several tests that are used to evaluate the effectiveness of adverts that already exist. Thus, the management team at Power Mixed Martial Arts School for kids should aim at examining the attitudes of the kids in order to determine whether the response is positive or negative.
They should also determine the advertising persuasiveness. With this regard, the management team should consider using sales promotion as an incentive to attract kids to join the Power Mixed Martial Arts School. Sales promotion is used to enhance short term sales or help build long term market share.
The management team of the Power Martial Arts School for kids can use the promotion tools; they can offer coupons for free, make up free cards for the current students to pass out to their friends, organize a seminar or a charity event at the school, organize pizza party for the current kids and ensure that fliers are available among others (Vactor & Peterson, 2002, P. 84-86).
The following are some of reasons as to why Power Mixed Martial Arts School for kids should measure effectiveness of advertising; measuring the effectiveness of advertising is essential as it enables the firm to justify the advertising costs.
Advertising is usually a costly and complex affair. Thus, evaluating the effectiveness of advertising enables the managers to justify the advertising amounts. Justifying the cost of advertising is made possible by making a cost benefit analysis. The advertising costs are compared against the benefits of advertising.
Justifying the advertising costs enables the managers of the Power Mixed Martial Arts School for kids to ensure that advertising is a beneficial expenditure and not a wasteful one (Rowse & Fish, 2005, P. 313-332).
Measuring the effectiveness of Advertising enables the advertisers to be in charge of the advertising campaign. Thus, the managers of Power Mixed Martial Arts School for kids will be able to know whether or not the advertising results are in harmony with the advertising objectives.
The managers can timely make the necessary adjustments if the advertising results are not in agreement with the advertising goals (Rowse & Fish, 2005, P. 313-332). Measuring the effectiveness of advertising plays an important role in enabling the managers to determine the saturation point of advertising. Saturation point of advertising refers to the point beyond which further advertising results in negligible sales.
The managers of the Power Mixed Martial Arts School for kids can determine the saturation point of advertising by comparing the marginal revenue produced by advertising costs with the marginal costs of the advert. The managers should therefore stop incurring further costs on advertising when the marginal revenue is less or equal to the marginal costs (Rowse & Fish, 2005, P. 313-332).
Reference List
Jugenheimer, D & Kelley, L. (2009). Advertising Management. London: M.E. Sharpe.
Lyndon, O. (2008). Market Research and Analysis. Maryland: Wildside Press LLC.
Rowse, E & Fish, L. (2005). Fundamentals of Advertising. Montana: Kessinger Publishing.
Smith, P & Pulford, A. (1999). Strategic marketing communications: new ways to build and integrate communications. London: Kogan Page Publishers.
Vactor, K & Peterson, S. (2002). Starting and Running Your Own Martial Arts School. Clarendon: Tuttle Publishing.