The Role of Marketing in Organizational Growth and Development

The provided report emphasizes the significance of marketing in driving organizational growth and development. It highlights how marketing acts as a catalyst for business success and supports other departments such as human resource, information technology, and research and development. The report also discusses various books, journals, and online resources that provide insights into marketing essentials, including the importance of integrated marketing communication and social media in consumer behavior.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Roles and responsibilities of marketing Function .................................................................3
TASK 2............................................................................................................................................6
P2 How marketing function is inter-linked with other organizational department ....................6
TASK 3............................................................................................................................................9
P3 Marketing mix of ALDI and LIDL........................................................................................9
TASK 4..........................................................................................................................................13
P4 Marketing Plan of ALDI .....................................................................................................13
CONCLUSION ........................................................................................................................17

INTRODUCTION
Marketing refers to the set of activities related with buying and selling a product or
services. It is considered as one of the crucial function of organisation as it entire success and
growth depends upon how effectively and efficiently they promote or market their product or
services in the marketplace (What is Marketing, 2018). Companies use marketing function so as
to stimulate the interest of customer and enable them to purchase the product or services. The
main objectives of any organisation is to make maximum profit and this can only be possible if
they are able to tell their goods or services to ultimate consumer who actually wants it.
Selected organisation for this report is ALDI which is a leading Supermarket Store
operating in more than 20countries with over 10, 000 stores. The report covers different roles
and responsibilities of marketing function, how marketing is inter-linked with other functional
area of management, marketing mix of ALDI and LIDL, marketing plan of ALDI.
TASK 1
P1 Roles and responsibilities of marketing Function
Marketing concept refers to the set of activities that deals in promoting or advertising
different product or services among potential buyers. It basically act as a bridge between
customer and company is it mainly emphasize on meeting the requirement of both parties. Firms
uses marketing function so as to promote its product or services whereas with the help of
marketing function, it become easier for customer to find out specific product that fully or
effectively satisfies their needs and requirement.
ALDI is a leading discount Supermarket chain that operates in more than 20 countries
with over 10, 000 stores. The company mainly deals in providing food, beverages, sanitary
articles and household goods. Organization growth and success depend upon how effectively
they advertise their product in the market that make instant impact on customer and their
purchasing. Following are the different roles and responsibilities that ALDI is performing
towards different marketing function are as follows:
Marketing Information system: It can be defined as a system that collects, evaluate and
distribute information concerned with distinct choices of target audience and pass on the
gathered information to company's administrator that help them in making effective decision and
strategies for the company (Berkowitz, 2010). In other words, the system is mainly taking into
account by most of the organization so as to determine the actual needs and wants of target

customer that keeps on changing rapidly. According to Henry and Frank " For managing and
controlling organization in an effective manner, it is essential to manage the future and for
managing future in a systematic manner it is important for the company to collect and handle the
information effectively. Therefore, it is primarily important for any business to collect
information related with consumer need and want on frequent basis. ALDI is also using the
system (Clow and James, 2013). Their managers have analyzed that most of the customers prefer
to purchase product that are available on discounted rate i.e. they attract more towards
discounted product. This is one of the main reason why ALDI is offering their product at
discounted or lower rate.
Illustration 1: Marketing Function
(Source: Functions of Marketing, 2017)

Product and Service management: Once the company is done with identifying their target
market and set accurate price for the product or services, the next step is to effectively manage
the product or services. This mainly covers listening to customer, responding to their needs and
wants and and maintaining product or services fresh or up-to-date (Blythe, 2012). ALDI is
famous for selling product or services at relatively lower rate. They buy product in bulk
quantities directly from supplier and then store them their warehouses ensuring timely quality
and maintenance as well.
Pricing strategies: One of the most important responsibility of any company is to set correct
price for product or services that they are offering or providing to potential buyers. If the price is
too high, then there is high possibility that company may lose customer and if the price is too
low then its overall profitability ratio can be affected. The right or the best price mostly come
through trial and error method and conducting some market research. ALDI is gaining high
competitive advantage because of its pricing strategies. The company is mainly following unit
pricing strategy which makes easier for customers to compare their product with that of
competitors. It is essential for a company to set price that creates value customer or for which
consumer is willing to pay. The selected company has figure out that most of the customer
instantly attracts towards such product or services that are available on discounted rate. Taking
the advantage of this the company is providing good and services at competitively lower rate.
Other pricing strategies like competitive, psychological has also taken into consideration by
ALDI.
Selling: Both selling and marketing function are inter-related with one another. This is mainly
because once the company is done with identifying the ultimate wants and needs of targer
customer, the next step is how to deliver or sell it so that it can reach effectively to customers.
ALDI is selling their product through stores or outlets. In-fact they are also selling through their
official online website and mobile application.
Promotion: This is one of most important function of marketing as it deals with how company
promote advertise its product or services among customer in the market place. It generator
awareness among buyers which stimulate them to buy that particular product or services.
Basically, promotion refers as a voice of the company to which company conveys their brand
message in the form of product or services among target audience in loud and clear manner
(Desai, 2013). With the help of this marketing function, firm can provide all necessary

information associated with particular goods or services. In order to seize the attention of
consumer, is important to have effective promotional and marketing strategy that provide best
solution to customer in terms of meeting their requirement in an appropriate manner. Promotion
includes personal selling, publicity, sales promotion and advertisement (Hauer, 2011). In UK,
Australia and US ALDI is promoting their product through print, electronic and display media.
In addition to that they are also using social media platform such as Facebook Instagram
YouTube for promoting their product or services.
Financing: It takes money to make money. This is also one of the most important function of
marketing that play key role in organizational success and growth. It is primarily essential for
business owner to find various sources through which they can get adequate funds that help in
managing their overall business activities in an effective and efficient manner. Mainly there are
two sources of funding that existing market one is internal and other is external. Internal source
of funding means funds are available within the company only such as retained earning, profits,
by selling long term assets that are currently not in use. External source of funding means funds
are available outside the company in the form of bank, creditors, angel investors, individual
donor, etc. ALDI is mainly taking into account both internal and external sources of funds so that
they can manage their business activities and operation in a structured and thorough manner.
Distribution Channel: It's mainly deals with deciding the way or channel by which company is
going to sell their product or services to target audience. Having an idea for a product is good but
if companies is unable to effectively deliver it to customer who actually wants it and they are not
able to make enough money. ALDI is i purchasing product in bulk quantities from different
suppliers and then sell it among customer with their own private labels.
TASK 2
P2 How marketing function is inter-linked with other organizational department
Marketing concept is widely used by business enterprises so as to determine the diverse
needs and wants of buyers. It helping achieving both long and short term business objective in an
effective and efficient manner. The heart of every business lies in their marketing process. Its not
only aid in promoting goods and delivering it to customer who actually needs it but it also help in
managing and controlling the functionality other organizational department as well (Dibb and
Simkin, 2013). Marketing function is linked with human resource department, research and
development, sales department, information technology and many more. Following are the roles

and responsibilities of marketing in context of different organizational department are as
follows:
Human Resource Department and Marketing: The main function of HR department is to
search and select most talented and suitable candidate for the company that helping achieving
thier objectives in a cost effective and timely manner. Company primarily focuses on attracting
profitable customer in order to achieve fair sales number and for attaining decent sales number
company needs to hire talented and skilled candidate. With the help us marketing function, HR
manager of any company attract and stimulate pool of applicants to apply for job in the
respective firm (Jones and Rowley, 2011). The manager of ALDI is effectively using the
marketing function. Their manager advertise about vacancy by selecting appropriate channel so
that they can get best candidate for the given job. The company is mainly hiring employees to
extenal source of recruitment such as walk-ins, advertisement, labour contractors etc. With the
help of marketing tool, they can easily conveys their information or message regarding any job
vacany or opening in the company. It is one of the most effective and commonly used method for
attracting pool of applicants simultaneously.
Information technology and marketing: With the advance and latest technology it has become
much easier for business entities to gain high competitive edge and capture large market share in
the market. Innovative technology assist company in formulating effective policies and
strategies that is beneficial for the company. Information technology department gives single
view point of customer that mainly signifies all interactions that lies between customer and
brand. With advanced technology, it has become much easier for company to collect information
regarding consumer profile, past purchasing pattern, digital media interaction and all other
important information that is concerned with consumer that might help company in taking
effective decision regarding the fulfilment of thier needs and wants. In UK, ALDI determines the
current likes and dislikes of potential buyer with the help of social media platform. According to
statistics report, 85% of population is having atleast one social media account. The main reason
for choosing this channel is to attract large number of customer to their own area of interest. The
company is also selling their product through their online mobile application.
Sales department and marketing: Sales and marketing department are inter-linked with each
other. Both departments act as a mediator between buyer and production department (Mihart,
2012). Customer normally discuss their concerns or requirement related with particular product

or services with the sales department of the company. Further sales manager pass on this
information to other department of the company such as manufacturing or production so that
they can make product as per the requirement of customers. With the assistance of marketing and
sales department, business enterprises can effectively convert the requirement of client into
particular products specification (McDaniel and Gates, 2012). In addition to that, with different
types of promotional tools sales manager can also alert the production department concerned
with increase or decrease demand of goods or services. Thus, both functions are inter-related
with each other. ALDI is normally selling their product at discounted rate which makes customer
think that the company must be selling poor quality of product at low price. The role of their
sales manager is to clear their brain image and ensures that company is selling best quality of
product at discounted price.
(Functional areas in business organisation, 2017)
Marketing and finance department: Finance and marketing are referred as an essential pillar
of an organization on which its entire profitability and revenue depends. The term finance
covers feasibility of profit, cost or project whereas marketing function encompasses sales target,
sales volume, publicity, advertising etc. Without proper advertisement it become difficult for the
company to improve the sales of a particular product and without sales, company cannot
generate adequate profit (Lamb, Hair and McDaniel, 2011). Therefore, in order to increase the
overall profitability of the business enterprise, marketing function plays crucial role. In order to
Illustration 2: Different Organizational Department

set companies goal and target in an effective manner, successful marketing serves as a strong
base. In addition to that, marketing function also assist ALDI in evaluating different internal and
external source of funding so that company can select most appropriate source of funding.
Research & development and Marketing: In today's era, marketing function viewed as an
immediate approach towards determining the reaction and behaviour of customers across
multiple media channel that transfers companies message in the form of product that satisfies the
actual need of the targeted customer (Papasolomou and Melanthiou, 2012). Earlier, needs and
wants of customer were determined through observation, focus group, survey etc. But in modern
scenario, likes and dislikes of buyers can easily identifies through social media platform. Taste
and preference of target buyers are changing frequently, that develops an urge among entities to
change or alter thier existing product or services as per the client's requirement. For example:
The R&D Department of ALDI figures out that consumer instantly attract towards such product
that are available at low or discounted rate. Taking the benefit of this the company has decided to
offer product or services at discounted rate.
TASK 3
P3 Marketing mix of ALDI and LIDL
Elements of Marketing
Mix
ALDI LIDL
Product ALDI claims to offer
affordable food products that
are of same quality as other
competitors branded product.
They mainly buys product in
bulk quantities from selected
supplier and then branded as
their own label so as to have
better control over
production. The company
also deals in selling fresh
fruits and vegetable, clothes,
The company often similar
goods sold in other
supermarkets retailers in the
sector. They are offering their
product at discounted rate
which gives them high
competitive edge in the
overseas market. The main
difference can be in the form
of different brand that is sold
under the name of LIDL.

stationery, health and beauty
products, soft tools and
household goods. They keep
on experimenting with their
non food items so as to
effectively meet customer
requirement. For example:
During winters, they offer
snow gear and warm
campaign gear, thus
modifying its product line as
per the requirement of
particular season.
Price They are having strong
customer base because of its
cheap price and quality that
they offers for its own private
label product which aren't
available with the
competitors. There are
various other pricing policies
as well that has been taken
into account by ALDI such as
unit pricing strategy,
competitive pricing,
psychological pricing etc.
LIDL gain popularity for its
clever pricing strategies. They
entered the supermarket
industry based on being most
valuable driven super market
industry. They are providing
goods at discounted or lower
rate. Further all payments are
made before their stocking
level starts declining.
Promotion Promotional activity of ALDI
is little comprehensive. As
the company claims to be a
cost saving strategy, they are
In UK, the company is not
having any loyalty schemes in
order to seize the attention of
customers as they believe that

spending negligible amount
for promoting their product in
the marketplace. All it offers
is some " Super Buys" offers
that are only available till the
inventory last. However, they
have a weekly newsletter
called " ALDI informs" that
handed over to customer
either via direct mail
newspaper. In the market of
Australia, UK and US, the
company is making extensive
use of display, print and
electronic media to promote
their product or services.
their clever pricing strategies
is enough to attract pool of
customers. The only
promotional strategy that
LIDL is using is store
promotion. They do not sell
their goods at discounted rate
as they are already selling
their products at relatively
lower prices over other
competitors.
Place Currently, the companies
operating in more than 20
countries with over 10,000
stores. In fact in Britain every
week their new store opens.
The firm gain high
competitive advantage in the
market because of its simple
store layout. Moreover, they
procure all product in bulk
quantity sourced from
different suppliers and store
them at local warehouses and
ensuring quality and
maintenance all the time. The
LIDL is having plethora of
store in the market of US and
UK. They often operate in
different segments based on
the different country ranging
from value to high-end
products. They have
maximum number of
distribution network all
across the Europe and UK
that ensure that all store must
maintain minimum level of
inventory. According to their
business model they aim at
selling maximum number of

company tries to maintain
their regional appearance as
per different countries and
those name their stores
accordingly. For example: In
Switzerland, it is popular as
ALDI Suisse.
goods in shortest amount of
time.
People The company is having lower
customer service as compared
to its competitors. This is
mainly because their workers
do not help customer in
product selection as they very
thoughtfully put its store
layout where everything is
divided or classified into
proper section that ultimately
leads to decrease the number
of employees required at each
floor. In addition to that, they
are paying extra to their
employees so as to gain high
competitive advantage and
they also conduct various
training sessions for their
workforce make them
effective and efficient.
LIDL is paying attractive pay
to its workers but in return
they need to work incredibly
hard . Performance of LIDL
employees is measured on the
basis amount of items
scanned by them. They are
also providing training to
them so that they can
effectively scan items by in
less span of time. The
company ensures that they
must fulfil the needs of
employees in an appropriate
manner.
Physical Evidence The company gained
popularity all across the
Majority of its stores laid out
in a linear manner. This assist

world because of its simple
business process, global
pricing and standardization.
Almost 85% of their stock
falls under their home brand
and rest of the product are
from well recognized and
popular brands. In fact, their
everyday low pricing strategy
is same all across the globe.
customers in product
selection that ultimately saves
their both time and energy.
Also they exhibit their brand
colour throughout their
surrounding area so that
customers can easily find out
or locate their stores.
Process With its sheer layout it
become much easier and
simpler for buyers to find
product as soon as possible
that ultimately reduces the
number of personnel ALDI
requires to assist their
customers. They keep limited
number of high quality
product so as to prevent
consumers from getting
confused that ultimately leads
to reduce the overall selection
time
The primary process of LIDL
stores is to sell maximum
number of goods in short span
of time. Also they are not
involving their customers in
any of their procedures or
process.
TASK 4
P4 Marketing Plan of ALDI
Company Overview: ALDI was founded in 1913. From the last 105 years the company gained
popularity as leading discounted supermarket chain with over 10, 000 stores in more than 20n
countries with an estimated turnover of more than €50 billion. It is Germany based company and

was mainly founded by brothers Theo and Karl Albrecht. The company is operating in other
international market such as Australia, US, UK, Italy, France, Denmark and many others. They
are the leading the market by selling products like foods, beverages, sanitary and households at
relatively discounted rate as compared to other competitor who are selling same good in the
marketplace.
Vision Statement: “To serve high quality product at discounted or lower rate”
Mission Statement: “To attain high competitive advantage by meeting customer
requirement in a cost-effective and timely manner”
STP Approach:
Segmentation People looking out to purchase groceries at
competitive price.
Targeting Household consumers
Positioning Majority of goods selling under their own
private label brand which aren’t available
with the customers. ALDI is strongly placed
in Germany and now trying to lead overseas
market.
SWOT Analysis:
Strength Claims to offer high quality products at
relatively discounted or lower rate
Strong market presence in Germany with
more than 2500 outlets
Currently operating in more than 20 countries
Gain high competitive advantage for its store
layout, global pricing and simplest business
process.
In Aldi, operational cost is low as compared
to others.
Weakness Global impact of ALDI is weak as compared
to others international brand

Sometimes allegedly referred as a store that
serve low and cheap quality product
Strong market competition
Opportunities They need to spend more in advertising and
promoting their products
Expand countries in growing countries like
Asia, Africa etc.
Threats Not suitable for those who are looking for
complete shopping experience
Private label brand can be easily tossed away
by already established brands in the market
place.
Others retailers who have thousands of
different SKUs.
Marketing Mix:
Product The company particularly deals in selling
grocery or household products at lower rate or
discounted rate. Other than food they also
deal in providing fresh fruit and vegetable,
clothes, stationery, electronic products, soft
tools etc. In Belgium, Netherlands, Germany
and Australia ALDI is having mobile virtual
operator as well. In Austria, the company is
having joint venture with local petrol retailer.
Price The company gained popularity for its unique
pricing strategy that instantly seize the
attention of customers. Also with this pricing
strategies it will become much easier for
customers to compare their products with
other competitor’s brand. Other pricing

strategy like competitive, psychological and
market penetration was also taken into
account by ALDI.
Place Presently, the company is operating in more
than 20 international countries with over 10,
000 stores. They purchase products in bulk
quantities from different supplier and store
them in local warehouses and all the time
ensuring its quality. They are mainly selling
product through their physical stores and
online application as well.
Promotion In Germany, company is not have any
marketing department who promote their
product as they believe that their pricing
strategies is effective enough to promote its
products. However in UK, Australia and US
they do advertise their product through
electronic, digital and print media.
Process By its sheet layout, it has become much easier
for customers to find product as soon as
possible. In-fact with its sheer layout they
have reduced the number of employees
required on every floor.
Physical Evidence The company gain high competitive edge in
the market because of its simple business
process, global pricing and standardization.
They are selling almost 85% of its stock under
their own private labels and rest of are some
other popular brand products. In addition to
their “everyday low prices” strategies remains
same throughout the world.

People The firm is having lower customer services
than its rivals. This is mainly due to their
unique store layout that do allow workers to
assist consumers in product selection. This
ultimately leads to decrease the number of
personnel required at every level. Further they
are paying attractive salary to its employees
and also providing them adequate training that
help in developing their overall productivity
and efficiency.
Budget:
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 3500 5000 8100 10000 12000
Investment 12000 20000 24000 10000
Total 3500 17000 28100 34000 22000
Marketing outlay
Promotion 3000 2500 3100 4100 2000
sales publicity 4100 4050 5500 3300 3300
Direct selling 3000 2000 4300 3200 4200

Total 12100 9550 12900 10600 9500
Monitoring and Controlling: Once the marketer is done with formulating all effective
strategies and policies related marketing plan, he further needs to ensure that all activities must
takes place in an appropriate manner so that company can attain defined goals and objectives in a
structured and through manner (Silver, Stevens and Loudon, 2012). However if they found any
variance in the defined activities, best possible solution is developed by them so to remove
unnecessary hindrance.
CONCLUSION
According to the above mentioned report it can be concluded that, marketing plays key
role in organizational growth and development in the market. The entire profitability ratio of
company depend upon how effectively and efficiently they use marketing and its function as it is
serve as a only medium through which companies can maintain strong and long lasting
relationship with its customers. Therefore, it act as catalyst for the success of any company.
Further marketing also assist other department of organization as well such as human resource,
information technology, research and development so that all business activities and operation
can be carried out smoothly and effectively.

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Online:
What is Marketing?. 2018. [Online]. Available through:
<http://www.marketingteacher.com/marketing-mix/>.
How to Create a Marketing Plan. 2018. Available through:
<https://www.entrepreneur.com/article/43018>.