The country is facing hard economic times that have led to the elimination of government grants and despite the increase of expenses and fundraising efforts there seems to be no improvement. Therefore, the following is a list of proposals that will positively impact the progress of your business.
For instance, both the projected costs of fixed and variable costs will change adversely.
The fixed marketing expenses will significantly change. Therefore having effects on the costs of the total expenses of the museum which will, in the long run, affect the profit margins of the firm. It, therefore, calls for the investment of more finances so that you will be in a position to meet all the requirements that will necessitate effective marketing of services and products that will ensure that the museum not only maintains its client base but have a positive increment.
The gift shop is expected to go down as the ticket sales are projected to reduce. One of the causes of this case could be attributed to the hard economic terms that the country is going through. Therefore, the museum ought to come up with different strategies that will enable it to either maintain its current sales or increase. The strategies could be related to ensuring that they are ahead of your competitors through the use of technology and innovations.
The costs of the tickets need to be reduced based on the fact that there will be a drop in ticket sales. Reduction of the costs of production will significantly reduce the costs of operations (Crandell, 2009). The museum will be in a position to save money that could be channeled to marketing and promotions of both the services and the products. The museum will also be in a position to meet its fixed costs in other areas such as on salaries and wages.
Because of the cut off of the grants by the government, therefore your firm needs to take the following actions;
The level of income can be increased through the capitalization on fundraising. The museum needs to increase marketing. As marketing will expose your brands and the services to the market. Therefore, the firm will need to develop a good marketing plan that will assist the business to meet the needs of a target population. Through good marketing, your clients will be able to understand your services or products different or better than the ones from your competitors (Lamberti & Noci, 2010).Through a good marketing plan, the firm will increase its customer's base and reach the target audience. Therefore, this calls for commitment, time and research in the development of the market plan.
There is the need to carry out a needs assessment and compare the performance of your competitors with your firm. For instance, through knowing what your competitors are offering and how they are coping up with the hard economic times will help your firm to make your marketing and services to stand out. Moreover, you will be able to come up with unique initiatives and set prices competitively that will ensure that your firm competes effectively (Kotler, 2003). You will have to come up with marketing strategies that will be used to the advantage of the weaknesses of your competitors. You will also need to assess the threats by your current competitors and the new entrants. Through this information, your firm will be in a position that will ensure the success of the business.
Crandell, C. (2009), Marketing and Sales: Integrate And Prosper. www.forbes.com.
Kotler, P. (2003), Marketing Insights from A to Z: 80 Concepts Every Manager Needs to Know, John Wiley & Sons, Hoboken, New Jersey
Lamberti, L. & Noci, G. (2010), Marketing strategy and marketing performance measurement system: Exploring the relationship, European Management Journal, Vol. 28, No. 2, 139-152.
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