Marketing Principles

This report discusses the marketing principles and strategies to create effective marketing plans and promote products and services in the market. It includes case studies of BMW, Barclays, and Vodafone. Topics covered include market analysis, target market identification, marketing mix decisions, micro and macro factors affecting business operations, market segmentation, targeting strategies, buying behavior, product positioning, and competitive advantage.

Marketing Principles

INTRODUCTION
Marketing plays a prominent role in generating demand of product for the consumer. It is
a broad term which includes various components such as marketing process, strategies and other
other activities. Main aim of marketing is to create awareness about firm's products and services
to their target customers which can help to attain organisational goals and objectives (Armstrong
and et. al., 2014). This report is based on the marketing principles which can help to make
effective marketing plan and promote firm's product and services in the market. This report is
focused on the product development and corporation distribution channels. The first part of this
report is based on BMW which is a leading car manufacture in the country. The second part of
this report is related with the Barclays which is one of the largest bank in the UK. And the last
part of this report is related with the Vodafone which is telecommunication company of the
United Kingdom.
TASK 1
1.1
The marketing process includes following elements:
Analysing market opportunities: It is important for each and every business unit to
identifying market opportunities (Ballantyne, and Varey, 2006). For that, firm is required to scan
the business environment carefully through various approaches. It can help in determining
current and future trends of market and identification of customer needs.
Identification of target market: This is the next stage of marketing process which helps
to determine the target market. For that, company can divide consumer market into different
segments on the basis of various factors such as psychological, behavioural, personal and
geographical. For example, BMW is one of the leading car manufactures in the world that offers
luxury products to their high income group.
Marketing Mix decisions: This is another stage in marketing process which is related
with the marketing mix decisions. As a marketing manager of BMW they required to focus on
the product, place and price and promotional aspects. It can help to give the competitive
superiority over rival companies (Corrigan, 2011).
Managing marketing efforts: Once designing the strategies, organisation requires
implementation of all strategies effectively. It is because; without effective implementation,
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whole marketing process goes waste. Therefore, manager of BMW can focus on the management
functions such as planning, analysing, implementation and control.
1.2
There are various approaches which can be used by the business organization such as
product, marketing and customer oriented approaches (Dann, 2010). Today, most of the
companies are using marketing oriented approach which is focused on customer needs. Business
units are making their strategic and tactical decisions according to the needs and wants of
customers. BMW is also using this approach and investing their money in the market research
and other tools for the identification of customer needs. There are following advantages and
disadvantages of the marketing approach:
Customer centric approach: As you know that toady customer is the king of market, so
that all business entities are concentrate on the customer and its need. The advantage of such
technique can help in increasing the demand and market share of BMW.
Addressing demand: Demand is one of the market forces which can help to attract more
companies into the business. For example, now a days, customers prefer mini SUV models
which is economical in terms of price and mileage. Therefore, BMW has also come in the market
and introducing their new model in this segment (Franke and Park, 2006).
Profitability: Main advantage of marketing concept is that it can provide profitability for
both business organisation as well as consumers. Due to increase in the demand, BMW can sell
their products in the market which can lead to increase their sales and profitability as well as
consumers can get their products according to their needs.
There are following disadvantages of marketing orientation:
Errors is prediction: Sometimes market research is not appropriate and unpredictable
for company which can lead to huge losses for the business. Because as you know that
customer's expectation are continuously chaining (Hills, Hultman and Miles, 2008).
TASK 2
2.1
There are two types of factors which can affect the business operations of company, that
is, Micro and Macro. Micro factors are related with the internal environment of firm and macro
factors are related with the external environment. Saninsbury is required to carefully analyse all
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factors which can overcome their potential impact on the business (Lees-Marshment, 2009).
There are following micro and macro factors which can affect the functioning of BMW:
Micro factors: Customers: Customers are the major factor in the micro environment because they
directly affect the product’s demand in market. Various product have failed due to
customer perception, so that Saninsbury are more concentrate on the product design
which can satisfy the needs of the consumer. Employees: Employees are the valuable assets of every business unit because they
contribute their efforts towards achieving organisational goals and objectives. They also
affect firm’s productivity and performance (Lefebvre, 2012). Therefore, Saninsbury
provides all employment benefits to them as well as training which can improve their
skills and capabilities.
 Suppliers: Suppliers are too important for company because they provide raw material
and other components at the right time. They can also affects firm's performance in order
to increase the price of raw material.
Macro Factors: Political: These factors are related with the government stability and business policy in
country. Apart from that, government can also influence the business policies in
economy. For example, change in the oil prices can adversely affect sales of Saninsbury
in the market. Economical: There are various economic policies such as monetary and fiscal policy.
These policies are related with the economic components such as GDP, interest, inflation,
tax rate and so on (Merrilees and Miller, 2008). For example, increase in the tax rate can
lead to reduce the revenue and profitability of company.
Technological: Technology is having a great significance in today's business environment
because it reduces the cost of production and increases profitability of business organisation.
Saninsbury also uses innovative technologies in order to reduce their cost of production. Apart
from that they can also use social media in order to promote their products and services.
2.2
Market segmentation refers to divide market in to small segment on the basis of various
variables such as geographical, psychological, behavioural and demographic. Therefore,
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Saninsbury requires that to provide a wide range of products for their different markets which
can help to boos sales of the company (Papasolomou and Vrontis, 2006). There are following
market where company can use their segmentation strategies more effectively:
Perfect competition: This is market where large number of competitors are sale their
products at a competitive price which can create tough competition. Saninsbury is required to
analyses the market carefully and design their products accordingly. For example, In the
geographic segmentation they can divide their market geographically which can help to offer
suitable product to their target market (Spiller and et. al., 2013).
Monopoly market: This is another market where one company can dominate the market
in terms of market share. There are various product specially in the premium segment where
Saninsbury is dominate in the market. Because they provide high quality and premium product
such as menswear, womenswear, childwear, sportswear and footwears to their high income
group customers. It can provide competitive advantage over rival companies.
2.3
Companies are generally design their products to a selected market or customer group. To
attract their target group organisation can use various targetting strategies which can help to
create demand of the product in to the market (Smith, 2014). There are various targeting
strategies such as undifferentiated marketing, niche marketing, focus, and customization
strategies. Saninsbury also using their target strategies according ton their market. For example,
company wants to target customization marketing strategies for their niche market or their
selected target group for their new sport clothing. As per to their product and target market their
required to design their marketing mix which can help to attract large number of customers.
Apart from that, Sainsbury can also use various pricing strategies such as offer pricing,
penetration pricing, and competitive pricing which can help to provide competitive advantages
over rival companies. For example, in the festive seasion they can provide their product at a
discount price which can attract large number of customers. The main motive of this strategies is
to increase market share and revenue of the company (Strömbäck, 2007).
2.4
Buying behaviour is played a important role in the purchasing and post consumption of
the product. Therefore, all marketing activities are largely depends on the consumer behavioural
aspects. This is related with the consumer needs, attitude, nature and product expectation. It can
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help to Saninsbury to determining the exact need of the customers and market opportunities.
There are four types of buying behaviour are mentioned below:
Dissonance reducing buying behavior: In dissonance reducing buying behavior
customer involvement is very high due to high price and infrequent purchases among various
brands.
Complex buying behavior: In this buying behavior customer is highly involved at the
time of purchase. In such behavior consumer is taking lot of time due to high price and risk.
Habitual buying behavior: This is another buying behavior where customer
involvement is very low and there is no significance of brand (Tuli, Kohli and Bharadwaj, 2007).
Variety seeking behavior: In this behavior customer involvement is very law but brand
having a great significance.
There are various buying situations are given below:
 This is the first situation where customer is buy a product first time in their life. In this
situation customer have discussion with their relatives and friends and hesitate to buy the
car. Therefore, Saninsbury having experienced and talented sale persons which can
satisfy their queries and sale the products.
 This is another situation where buyer is buy second time product form the market. In this
situation past experience is having a great importance. If customers is satisfied with
existing product, he can buy the same brand.
2.5
Product positioning is marketing tool which promote their product in to different manner
to their target customers (Wang, 2007). Market segmentation and positioning strategies are
interrelated with each other which can help to set product position in the market. Positioning is
related to create a message of their product and convey it to their customer through various
promotion tools. This type of strategies is help to provide competitive advantage over it
competitors and create a sound image of their brand. In order to make their product competitive
in the market Sainsburry can used price promotional as a sales tools which can help to make their
product more effective. Price promotion can be effective and it can leads to increase sales and
customer loyalty. For example, the marketing manager of the company can use back to school
discount, holiday sales offer and off-season offers all these strategies are effective and motivate
of the customers. For this they also used various promotional tools such as electronic media print
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media and specially the social media platform which are more effective and appeal large number
of potential customers (Allsop, Bassett and Hoskins, 2008). The main target of this product is
their existing customer which are using their previous model of this segment. It can help to
attract large number of customer in the market for their new product.
TASK 3
3.1
There are various approaches which can be used by the business organisation in order to
attain competitive advantage. Barclays Bank is one of the leading bank in the United Kingdom
which provide a variety of services to their customers. Banking sectors is one of the competitive
sectors in the British market due tough competition. Therefore, it is important for the bank to
sustain in the market through provide innovate and attractive products to their customers. To
maintain the competitive position in the market bank required to use different marketing
strategies (Anderson, Narus and Narayandas, 2009). There are following strategies which can be
used by Barclays:
Cost leadership: When a business organisation is able to produce their products and
services at the lower cost as compare to its rival companies. Barclays is provide variety of
product in the lower cost which can help to make competitive in the market. For example, they
can provide higher interest rate on the fixed deposits, they can provide different types of loans
such as education loan, personal loan, home loan and so on at the lower interest rate which can
help to increase their sales and help to maintain their market share.
Differentiation: This is another important strategies which can be used by Barclays to
achieve competitive advantage (Ballantyne and Varey, 2006). Here, bank can provide a wide
range of the product which can satisfy the customer needs. There are different areas where banks
can make their product different from its competitors.
Focus: This is another strategies which is too important for the banks. There are various
private and public sectors banks which provide variety of services. Barclays is having
experienced in the provide quality services to its customers (Brealey and et. al., 2012).
3.2
Distinction channel are played a important role in the success of each and every business unit.
Barclays is required to make their distribution channel effective which can help to increase the
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sales volume and customer services as well. In the banking sector there are two types of
distribution channels as given below:
Direct distribution centres: This is one of the important distribution centre where customers
and bank are directly interact with each other without mediators. Barclays having a strong
distribution network across United Kingdom where they can sell their directly to their customers.
Apart from that bank also having their online platform where customer are easily assess their
accounts and buying bank's product directly from the company (Constantinides and Fountain,
2008). With the help of this kind of distribution channel they can provide better services to their
customers, it can also help to increase the relationship between bank and customers which can
leads to customer loyalty.
Indirect distribution centre: This is another of distribution channel where banks can sell their
product through third party or mediators. There are various advantage of this approach bank's
can reach large number of customer. It can also reducing the operational cost of the bank which
can increase the profitability of the company.
3.3
Pricing is one of the important component of marketing mix, along with product, place and
promotion. Pricing strategies is very important for the company in order to attain organisational
goals and objectives. There are various pricing strategies which can be used by Barclays:
Penetrate pricing: The main aim of this strategy is to gain the market share by entering in the
market with lower price. Barclays banks requires that to offer their new banking products and
services at the lower price which can help to attract large number of customer.
Price skimming: This is another strategies where company can introduce their product at the
higher price in order to attract higher income group. It can help to generate large revenue and
profitability of the company (Constantinides, 2006). For example, apple can introducing their
product at the higher price.
Premium pricing: Premium pricing model is generally for the premium customers. In this
strategy bank can offer their high value products to their customer with the high quality of
services as compare to other products.
Competitive pricing: This is another pricing model where company can offer their product and
services lower price as compare to its rival organisations. The main advantage of this pricing
strategy is to make competitiveness in the market.
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3.4
Promotional activities is one of the important components of marketing mix such as
advertising, personal selling, sales promotion and public relation. The main objectives of
marketing are not effectively attain without promotional activities. There are various
multinational companies which spend their money in to promotion and advertising to reach their
customers (Gordon and et. al., 2006). There are various medium which can be sued by the
company which includes televisions, radio, newspapers, magazines etc. to promote their product
and services. Personal selling is another promotional tool where Barclays sales person can
provide product information to their customers and sell their products. Sales promotion is
another method where marketing manager of bank can provide extra benefit to their customers.
For example, banks can distribute gifts and gift vouchers in order to promote their new schemes
and product. Apart from that they can also conduct fair, events and contest which can help to
reach large number of people at a time. Social media is one of the important platform where
Barclays can use various social media tools such as Facebook, You Tube, Instagram, Twistor etc.
these tools also help in taking the feedback from their customers.
3.5
Marketing mix is a combination of four elements which include product, price, place and
promotion. But today business organisation are also using additional three elements such as
people, physical evidence and process which can help in effective implementation in the
marketing strategies. These three elements of marketing mix as given below:
People: People is also important for the organisation which include the staff and employees of
the company. Talented people can be valuable asset for the a business unit because they
contributes their efforts to attain firm's goals and objectives. Therefore, it is required HR
manager of Barclays to recruit well skilled and capable workforce for the corporation. Apart
form that they also provide training and development which can help to enhance their
performance and productivity.
Physical evidence: This is another marketing mix which is related with the overall infrastructure
system of the company. This element is focused on the quality of service and effective chain
system in the organisation which can improve the customer service and satisfaction. In the
context of bank physical evidence is related with the information management system, bank
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officers, staff and suitable infrastructure which can support the overall activities of the bank
(Hair and et. al., 2012).
Process: This is too important element which is focused on the delivery of goods and services to
the customers. Marketing manager of Barclays is required to determining the actual need of the
customers and make products accordingly which can help to achieve organisational long term
goals and services effectively.
TASK 4
4.1 Covered in PPT
4.2Covered in PPT
4.3Covered in PPT
CONCLUSION
As per the the given report it has been concluded that marketing principles are essential
for each and every business organisation. There are various marking mix which can help to
create the demand of the product in the market. This report is also explain the market
segmentation and targeting strategies which can attract large number of customer which can
leads to increase the sales and profitability of the company. In the end it described the difference
between marketing product and services.
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