Applying Marketing Principles in the Global Environment

This report discusses the application of marketing principles in the global environment, with a focus on Sainsbury. It covers Kotler's Five Product Level Model, brand equity, marketing mix, and principles of marketing in international business.

Applying Marketing
Principles in the
Global Environment

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Company overview......................................................................................................................3
Kotler’s Five Product Level Model.............................................................................................3
Concept of Brand equity in Sainsbury.........................................................................................4
Marketing mix.............................................................................................................................5
Marketing principles in International market..............................................................................7
Recommendation.........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing plays an important role in making company successful as it helps in making aware
audience about company’s offerings and products. Marketing helps in attracting customer’s and
makes them influence to buy products (Baines, Fill and Rosengren, 2017). In order to capture
attention of audience, it is needed to introduce innovative ideas so that larger customer base can
be covered along with minimum cost. Marketers of company frames effective strategies so that
they can attain goals effectively and efficiently. In addition to that, it also facilitates in boosting
sales and profit margin of company. There are various marketing principles that company may
opt and promote its products to its targeted audience. This report is based on Sainsbury, a
multinational retailer. This report will cover a brief introduction of company along with necessity
of marketing principles as well as recommendation of utilisation of marketing strategies in an
international market so as to make process smoother.
TASK
Company overview
Sainsbury is one of the largest supermarket chain started in 1869 in Holborn. This company was
commenced by John James and have an objective to serve quality products along with minimum
price to its customers. In early days, a shop was established which was known as Dury Lane.
This supermarket chain was distributed on three distinct parts in country. Company regularly
focus on bringing innovation to its products so that competitive advantage can be taken. The
main aim of this company is to serve better quality products along with low cost.
Kotler’s Five Product Level Model
This model states that there are various sets of product line which are offered by companies in
order to satisfy demand of and expectation of all customers (Groucutt and Hopkins, 2017). It
targets all customer segments and have product from economic price to premium price. Its main
focus is to target all segments of customers and to meet their expectation by offering product
which fits into their pocket. Following are some elements by which this model can be understood
in a well-mannered.
 Core benefit- It aims on providing on those goods and services which have potential to
fulfil basic needs and expectations. Sainsbury is trying to produce those products which

are of high quality and with minimum price. This will help company in attracting more
customers who are seeking for getting quality products but by paying less amount.
 Generic product- This type of products has limited characteristics and are sufficient for
adequate functioning. This type of product is opted by many customers as they want less
characteristics and not want to spend more on extra characteristics.
 Expected product- When consumers forecast benefits and usage of products offered by
companies are considered as expected product. Many customers forecast benefits prior to
purchasing of products and after analysing benefits buy product. If products do not meet
their expectation, then they will switch to other brand which offers similar product.
 Augmented product- In order to make product more unique, many companies add some
unique features and attributes so that their product can stand different in market. This
type of products generally attracts customers and makes them influence to buy product.
 Potential product- It may be referred as the combination of those products and services
which can provide benefits to customers based on forecasted situation.
Concept of Brand equity in Sainsbury
It is important for a company to have an outstanding brand value in market. It ensures that
product should reach to a larger customer base and meets customer’s expectation. Brand
equity is the structure that is followed by organisation in order to enhance market image by
introducing unique product that have potential to fulfil customer’s demand. This will help
company in generation of higher revenue and establishment can enjoy higher profit. In
addition to that, by elevating brand image company can attract larger customer base.
Marketers of Sainsbury focus on making unique product which stands out in market and have
potential to fulfil customer’s needs wants. Management of company makes it easier to
identify product easily for customers as well as retaining extreme quality of products (Kucuk,
2017). There are various methods by which company can elevate brand equity. In context to
Sainsbury, following are some ways to enhance brand value.
 Enhancing quality of product- Customers are seeking for better products and people are
highly selective in quality products. Sainsbury regularly brings innovation to its products
so that it can provide better quality of products. By doing this, company can gain
competitive advantage and gain more profit.

 Examining rival activities- It is important to examine activities of rivals and on that basis
frames strategies so as to achieve higher success in dynamic business environment
(Evans, Bratton and McKee, 2021). There are various competitors of Sainsbury such as
Asda, Morrison and Tesco which offers similar products. Company have to keep an eye
on its competitors so that measures can be taken against.
 Identification of customer’s needs- It is imperative for company to identify customer’s
needs and wants and based on that produces product that can meet expectation. Research
and development of team of Sainsbury effectively collects data from online sources and
interprets so as to create insight for further decision making. By taking care of customer’s
needs, it creates a sense of value among customers and it makes them loyal towards
company. This approach plays an important role in achieving success and a reason behind
company’s success. It helps in elevating brand image of company in market and in
achieving competitive advantage by capturing more market share.
 Compatibility in brand image- Sainsbury opts those brand which have potential to fulfil
customer’s demand. This helps in gaining more customers and eventually enhances brand
equity of company.
Marketing mix
Marketing mix may be defined as a combination of various marketing tactical tools
which are used by companies in order to promote its products and services. If used
effectively, it can bring efficiency to company’s profitability. It is opted by marketers of
company while framing marketing strategies in order to capture attention of customers. In
context to Sainsbury, marketing mix is discussed below.
 Product- There is wider range of products at Sainsbury which area unique to its
competitors that helps in eliminating threat of substitute. In order to minimise
competition, company regularly brings innovation to its products so that no competitor
can copy its features. This helps company in gaining competitive advantage and by
framing of strategies, company can grab attention of customers and USP of product
eventually influences to opt product.
 Price-. It is the only revenue generating element of the mix while all other marketing
activities represent a cost. When deciding price, the company should ensure that they are
still appropriate to the realities of the current market. Sometimes, the company need to

low the prices as compared to other ones. The pricing opts lower pricing strategy so that
it can attract large customer base. It is the main factor that drives customers to company
and influences to buy product (Lee and Kotler, 2019).
 Promotion- Promotion is the idea of making the product known to the public. It could be
in the forms of various advertisements, SEO, SEM, sponsorship, etc. It is a helpful tool
for the company for raising awareness, reaching new audiences, building relationships
with customers, etc (Ferrell, Hartline and Hochstein, 2021). Company opts social media
marketing so as to attract customer and make them aware about company’s offering. This
marketing method is cheaper and most effective as compare to traditional marketing.
Along with digital tools, company also opts traditional marketing tools such as TV
commercials and newspaper advertising.
 Place- The Fourth P stands for place which determines the location the product is
actually sold. It focus is to reduce the gap between the producers and the customers.
Sainsbury sell products through e-commerce, in-store selling. For attracting the
customers, product should be advertising in the right media so that maximum benefit can
be drawn.
 People- People are responsible for every element of the sales and marketing strategy and
activities and become the face of the company for the customer. It includes staff,
salesperson, customer service teams, etc. which directly or indirectly involved in the
product selling. Sainsbury have trained professional who have knowledge of product and
ability to influence buying decision of customers. In order to provide better customer
service experience, company focus on hiring professional staffs who have potential to
render quality service experience.
 Process- - It refers to the delivery of the product or service to a customer. Sainsbury
focus on creating smooth, efficient and customer-friendly journey which saves the time
of the customers and result in, positive response from the customers. Having the good
process should save the cost of the company. The process should be an environmentally
or sustainably focused. When the company provide good process, this would create a
huge impact on customers which increases the repeated purchase.
Physical evidence-. It refers to the physical environment where the product or service
provided, the packaging, the branding of the product, the layout of the product. The

company should build a reputative image so that the customer will bring more customer
which increases the sales and profitability of the company.
Marketing principles in International market Identification of market- It is needed for company to analyse market trends and based on
that makes decision. This will help company in eliminating risk associated with market
by framing of effective strategies. In addition to that, by observing consumer behaviour,
it becomes easier for company to produce product that can meet customer’s expectation. Culture and language- company opts various methods in order to communicate with its
targeted audience. This will help company in framing of marketing strategies by which
they can market product in their native language. Implementation of marketing plan- It’s not only about formation of marketing plan but
to implement in a well manner can bring efficiency to company’s profitability. It
facilitates in better understanding of audience and goals can be attained effectively.
Recommendation
There are various complexities that company is facing and it is need to address those issues so
that competitive advantage can be taken in international market. As company do not much
emphasis on upgrading its technology and not much active on social media. It may become a
hurdle for company in path of success. It is recommended to company that it should regularly
active on social media so as to allow two-way communication. In addition to that, by updating
technology can make process smoother and faster and company can reduce its overall cost.
Social media marketing is cheaper and most effective tool by which company can engage with
its audience. It is also recommended to company that it should focus on making flexible
strategies so that alteration can be done, if needed.

CONCLUSION
From the above project report, it was concluded that marketing is essential to promote products
of company. With marketing, company can showcase its products to its targeted audience.
Kotler’s product level model is also discussed in this report along with elements of marketing
mix. This report also elaborates 7Ps of marketing mix and how it can be effectively used so as to
make company more efficient. Marketers of Sainsbury deeply analyse elements of marketing
mix and based on that frames strategies to target their audience. It also covers principles of
marketing in international business.

REFERENCES
Books and Journals
Baines, P., Fill, C. and Rosengren, S., 2017. Marketing. Oxford University Press.
Evans, D., Bratton, S. and McKee, J., 2021. Social media marketing. AG Printing & Publishing.
Ferrell, O.C., Hartline, M. and Hochstein, B.W., 2021. Marketing strategy. Cengage Learning.
Groucutt, J. and Hopkins, C., 2017. Marketing. Bloomsbury Publishing.
Kaur, S., 2016. Social media marketing. Asian Journal of Multidimensional Research
(AJMR), 5(4), pp.6-12.
Kucuk, S.U., 2017. Marketing and Marketing Mix. In Visualizing Marketing (pp. 3-7). Palgrave
Macmillan, Cham.
Lee, N.R. and Kotler, P., 2019. Social marketing: Behavior change for social good. Sage
Publications.