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This assignment discusses the importance of marketing principles in the success of a business enterprise. It highlights the differences between marketing to customers versus marketing to businesses, as well as the differences between domestic and international marketing. The study concludes that customized fashion products can help boost sales and profitability, emphasizing the significance of understanding market orientation, customer behavior, and competition.

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Marketing
Principles

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TABLE OF CONTENTS
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Marketing and its concepts....................................................................................................3
1.2 Benefits and costs of marketing orientation...........................................................................5
TASK 2............................................................................................................................................5
2.1 Macro and micro factors that affect the marketing decisions................................................5
2.2 Segmentation criteria used by Sainsbury...............................................................................7
2.3 Targeting strategy for fashion products of Sainsbury............................................................8
2.4 The affect of buyer behavior on marketing activities of Sainsbury ......................................8
2.5 Positioning of fashion products of Sainsbury........................................................................9
TASK 3............................................................................................................................................9
3.1 Development of product to attain competitive advantage.....................................................9
3.2 Distribution arrangement of Customized clothes of Sainsbury...........................................10
3.3 Setting price for customized clothes....................................................................................11
3.4 Promotional practice for customized clothes of Sainsbury..................................................11
3.5 Additional elements of existing marketing mix ..................................................................12
TASK 4..........................................................................................................................................12
4.1 Marketing mix for two different segments..........................................................................12
4.2 Difference between marketing to business rather than customers.......................................13
4.3 Difference between international and domestic marketing.................................................14
Conclusion ....................................................................................................................................14
REFERENCES..............................................................................................................................16
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INTRODUCTION
Marketing is a set of activities which are involved in the transfer of goods and services
from manufacturer to final consumer. It is an important managerial process that pertains to
communicate the worth of services and products to customers with the aid of promotional
techniques. This aspect further helps in encouraging the sales and increasing productivity and
profitability of company (Lyons, 2012). . Therefore, marketing can be regarded as the backbone
of business success. The main objective of marketing principles is to ascertain the needs of
customers and finding the suitable methods to fulfill those needs.
In the present business report, different aspects of marketing principles within
organization are explained. The report also states the implication of marketing orientation within
business enterprise. In order to intensify the study, the big brand in retail industry of UK, J
Sainsbury has been selected. It provides a wide range of products and services with the help of
its retail stores, supermarkets etc.
TASK 1
1.1 Marketing and its concepts
Marketing is a method by which organizations interact with its target customers to
develop a business relationship which is fruitful to both the parties. In other words, marketing is
a managerial process of communicating the value of offerings to customers in order to boost the
sales of their products and services. Therefore, marketing is a business tool that is used by
Sainsbury to increase its sales and profitability. Further, it involves various concepts of
marketing which are explained as follows:
Production concept: According to this concept, the customers prefer those products
which are easily available at low cost (Wicker and et. al., 2012). Therefore, Sainsbury
take effective measures to cut down the excess cost of production and provides goods and
services at minimum possible cost. The economies of scale help company at providing
quality products at reasonable prices.
Product concept: This concept states that customers prefer products that are unique and
of best quality. Therefore, quality of products of company is a key factor that helps
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company in attracting large number of customers and retaining the loyal one. Sainsbury
uses its marketing competence to intensify the quality of their products and services.
Selling concept: As per this concept, the customers buy those products and services
which are highly promoted. Therefore, Sainsbury adopt innovative promotional methods
to attract the target customers and to retain them in future.
Marketing concept: It is the most effective and innovative method which states that in
order to earn lifetime loyalty of customers, it is important for company to concentrate on
the needs and demand of customers (Henley and et. al, 2011). This further leads to
satisfaction among customers. Therefore, Sainsbury conducts market surveys and ask
feedback from customers to provide goods and services as per the wants of them. Societal marketing concept: With this concept, Sainsbury takes suitable measures to
ensure the sustainability of environment while providing goods and services as per the
needs of customers. The main concern of company under this concept is regarding the
overall welfare of society.
Marketing Process
Analyze the marketing opportunities: For this aspect, Sainsbury conducts market
surveys to collect information about customers, their needs and preferences. This further
helps company in identifying the marketing opportunities to attain competitive benefits.
Selecting the target market: With this process, Sainsbury selects suitable market to
satisfy the needs of customers of that segment with the help of attractive marketing
strategies. For this aspect, Sainsbury uses segmenting, targeting and positioning methods
(French and Bennett, 2015).
Preparing the marketing mix: In this respect, company prepares a mix of marketing
elements, that is, product, price, place and promotion to prepare a marketing strategy
which further helps Sainsbury in accomplishing its overall marketing objective.
Managing marketing efforts: In this step, Sainsbury analyzes the marketing
environment, designs the suitable plan as well as implements and controls the plan.
Therefore, company manages the marketing efforts to get the best results.
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1.2 Benefits and costs of marketing orientation
Marketing orientation is an organizational approach which is used to design products as
per the customer’s wants and preferences. This further involves adopting effective measures to
identify the customer’s requirements and desires. Sainsbury incurs heavy expenditure on finding
the needs of consumers and the way in which they perceive the products of brand. Thereafter,
company does intensive research to identify prevailing fashion trends and to develop strategies
and products accordingly.
The advantage of marketing orientation is that it helps company in designing products
and services that match with the needs of customers. This further helps in retaining the
consumers to have repetitive purchase from them (Riggs, 2011).. Thereafter, successful
marketing orientation leads to long term benefits in the form of constant increase in profitability
of Sainsbury. Further, there is important cost that is associated with the market research and
analysis. It involves cost of hiring sales personnel who conduct marketing, technical
infrastructure used to gather customer data, cost of appointing marketing executives, etc. Further,
it is important for company before conducting marketing orientation to evaluate the benefits and
costs of it. Therefore, cost does not exceed the profit that is realized from the marketing
orientation.
TASK 2
2.1 Macro and micro factors that affect the marketing decisions
There are various intrinsic and extrinsic factors that affect the ability of Sainsbury to
perform various business operations. The macro economy refers to the study of entire economy
of nation. Further, it can be said as study of aggregate economy. Therefore, it regards to those
external factors that impact the entire economy. However, macro economy refers to study of
particular industry, company or market. It refers to decisions regarding distribution and
allocation of those. It refers to those internal factors that impact a particular firm or industry.
They are explained as follows:
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Micro environment factors
Suppliers: The suppliers can affect the operations of Sainsbury if they enjoy monopoly
and their goods are important input for the firm.
Distributors or dealers: They are responsible for the movement of products from
company to final customers. They further help in identifying the target customers and in
encouraging sales as well (Borges and et. al, 2005).
Customers: The customers play a crucial role for Sainsbury as they consume the goods
and services of company and generate profits.
Competitors: They represent the rival firms that sell identical products of Sainsbury and
cause negative impact on the sales of company. Public: They represent the group of people that can be impacted and affect the
performance of Sainsbury. Therefore, it is significant for the organization to ensure
maximum satisfaction to public.
Macro environment factors
Demographic factors: It involves factors like age, income, education etc. that are used
by the manager of Sainsbury to split the market and to devise marketing strategies
accordingly.
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Illustration 1:Micro and macro factors
(Source: Salkin, 2009)
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Political and legal factors: It represents the rules and regulations laid down by the UK
government and EU policies that affect the functioning of Sainsbury.
Economic factors: It refers to the economic policies and environment that affect the
demand and supply of company.
Social and cultural factors: The society can affect and can be affected with the
operations of Sainsbury. Therefore, interest and welfare of society must be considered by
company (Ettouzani and et. al, 2012). In this respect, firm should take effective steps to
minimize the negative impact of its operations on society and culture of UK.
Technological factors: It refers to the techniques that help Sainsbury in getting
competitive advantage from its rivals. Therefore, effective techniques are used in the
production process to develop innovative products and services.
Concluding the aforementioned aspects, it can be said that macro and micro analysis is
very important to ensure smooth functioning of Sainsbury. After studying the impact of macro
and micro factors, business enterprise can take important marketing decisions. Further, while
taking business decisions it can consider macro and micro factors and reduce their impact. Since,
macro and micro factors may impact the ability of Sainsbury to serve the customers by studying
them, there impact can be reduced. However, organization can also ensure flexibility in its
operations by adapting to the micro and macro changes. With this aspect, company can get
competitive benefit as compared to other rivals and ensure growth and success in dynamic
environment.
2.2 Segmentation criteria used by Sainsbury
Market segmentation is a process used by Sainsbury which involves division of total
market in different segments in order to reach at the potential customers and to fulfill their needs.
For instance, fashion apparels can be selected for further study, segmentation criteria of which
are explained as follows:
Behavioral segmentation: Sainsbury is providing range of fashion apparels in its brand
name. In order to attract and target the customers, marketing manager of Sainsbury can
divide the customers of the basis of their behavior, brand loyalty etc. With this aspect,
firm can identify the customers who are willing to buy products of company even at high
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price and those consumers who buy the product only if it is cheap (Dennis and et. al,
2006). This segmentation helps Sainsbury in offering different types of products to
different customers.
Psychographic factors: It refers to factors like psychology, personality and lifestyle of
customers that impact the purchase decision of customer (Martin, 2009). The marketing
manager of Sainsbury divides the market on the basis of psychographic factors to get
maximum benefits from the available market and products.
2.3 Targeting strategy for fashion products of Sainsbury
Targeting strategy refers to the selection of target customers to whom Sainsbury wants to
offer its products and services. It is the next step after the segmentation process which implies
the use of strong targeting strategy to reach at the potential customers (Carlson and Manktelow,
2013). It further facilitates strong communication of value of product to the target customers.
This helps in spreading the awareness of product in market and in boosting the sales of fashion
products. Therefore, successful targeting helps Sainsbury in increasing its customer base and
providing value to customers. However, there are different strategies that can be used by
Sainsbury to cover the wide market. Therefore, company can adopt differentiated marketing
strategies for promoting its branded and non branded products.
Furthermore, to market the branded fashion products Sainsbury can do marketing
through famous celebrities and models. This will build a unique image of its fashion apparels and
distinguish its branded fashion products while for non branded products normal promotional
techniques like advertisement on social networking sites, television, fashion magazines.
Therefore, with the help of differentiated marketing techniques, Sainsbury can target high
income customers who will prefer branded clothes and middle class customers who favor non
branded and discounted clothes (Dent, 2011). This strategy help in influencing the customers to
buy both the types of products. With this strategy a standard can be provided to various types of
fashion products available of the brand.
2.4 The affect of buyer behavior on marketing activities of Sainsbury
Buyer behavior refers to conditions that stimulate a individual to purchase and use the
products of Sainsbury. Thereafter, buyer behavior have direct impact on the marketing strategies
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of company. Therefore, it is required for organization to make significant changes in the
marketing activities of Sainsbury to get maximum attention of potential customers and increase
the productivity of business (Dennis and et. al, 2006). However, company can use behavioral
and pyschographic segmentation to study the buying behavior of individuals.
For an example of customer behavior, it can be said that people with high income are concerned
about prices as they prefer high priced and branded clothes. Therefore, company can link the
brand of Sainsbury with the status symbol of people in its marketing activities. This will
motivate customers to buy the high end products of brand. Furthermore, the buying behavior of
middle class customers is based on the price of products. They preferred to have quality products
at low price. (Beller, Weiss and Patler, 2007). Therefore, Sainsbury can initiate promotions that
meet with the needs of customers and stimulate them to buy non branded products and branded
clothes available at affordable prices. For this aspect, company can use marketing on social
networking sites, e- shopping sites, point of picture display that results in repetitive purchase.
To target the customers under psychographic segments, company can use current fashion
trends. For an example: In respect with the psychographic segments, the customers under this
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segment prefer stylish and unique products as per the prevailing market trends. The company has
to study the market and should come up with product as per current trends. Salisbury can
promote its products on fashion magazine and conduct fashion shows to promote its clothes. It
will motivate people under psychographic segment to make repetitive purchase.
2.5 Positioning of fashion products of Sainsbury
With the help of positioning strategy, Sainsbury can inhabit a impressive position in the
mind of customers. This strategy further help brand in getting a distinct position in market as
compared to its rival. Therefore Sainsbury can use Ansoff matrix to develop as suitable position
of its brand in market. It further includes four growth strategies; market penetration,
development, product development and diversification. Therefore, for its non branded products
company can use market penetration which involves selling current products in current market.
Sainsbury can cut down the prices of products for market penetration. Thereafter, market
development strategy enables company to sell current product in new market (Brassington, and
Pettit, 2010). Therefore, company can one new outlets in countries where its not functioning.
With the help of product development strategy, Sainsbury can design new customized product
accordance with the needs of consumer. Thereafter, diversification strategies enable company to
provide new product in new market. Hence, company can use market penetration and product
development strategies to gain a striking position of its brand in market. They further
differentiate fashion products in two segments and increase the sales of product.
TASK 3
3.1 Development of product to attain competitive advantage
Competitive advantage refers to benefits that are available to Sainsbury over its rivals
which help company in getting competitive edge over the present rivals. In order to gain distinct
position in market, Sainsbury can develop new products with innovative features (Chaffey and
et. al, 2006). Thereafter, company can also develop customized fashion apparels according to the
demand of customers. The customized fashion products means, Sainsbury can make tailor made
products as per the desires of customers. In this respect, customers can suggest the stitching
style, fabric that can be used, buttons, color combination, design, length and other features they
want in their fashion apparel. The customized product is not provided by any of the rivals of
Sainsbury therefore with this aspect, company can get competitive advantage. This will further
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help in boosting the sales of brand and increasing the productivity of company. The main
objective of customized clothing is that product is designed according to needs of customer
which increases the satisfaction of consumer (Martin, 2009). This also enhance the brand loyalty
and trust among customers which results in repetitive purchase of products of Sainsbury. In order
to gain competitive advantage in the market place the company has to focus on the prices and
value that is rendered to the customers. The business entity can attract the customers by offering
the best quality products at the lower price. The products can be of good quality as compared to
the competitors and the prices must of low. To a contrary note, the product with higher prices
must be having USP and unique features (Dennis and et. al, 2006).
Figure 1: Change in Demand and Supply due to fluctuation in price
(Source: Demand and Supply, 2015)
For example: in case Sainsbury provides quality customize product it can set the prices low to
the competitors. The prices can vary according to the demand of product. As earlier stated that
the economic situations affects the business hence low demand of product generally lead to low
prices however higher demand lead to higher prices.
Further, company can use different offers to attain competitive advantages like,
attracting accessories with fashion apparels at minimum price etc. Hence, customized products
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will give more flexibility to customers that will result in competitive advantages to Sainsbury
over its rivals in an effective and innovative manner.
3.2 Distribution arrangement of Customized clothes of Sainsbury
A well-structured distribution system provides a great support in the success of business.
Therefore, a integrated distribution system ensure satisfaction to consumers as well as give
standard reputation to brand in market. The customized clothes should be distributed in a mode
from which it can be purchased by the prospective customers with minimum efforts. Even
customers prefer those products which is available in a convenient manner (Ettouzani and et. al,
2012). Therefore, Sainsbury distributes its product in such a manner that its wide range of
offerings are accessible to customers within their comfort zone. At present the company is
providing valuable services through supermarket, superstores that facilitate easy availability of
products to large number of customers (Borges and et. al., 2005). Individuals belonging to
behavioral segment mostly are mostly girls and ladies who like to visit malls and prefer
excessive shopping. For attaching customers from such segments Sainsbury can sell customized
clothes through their own dedicate outlets in shopping malls. For attracting psycho graphic
Segment, apart from the dedicated stores, online stores are the best place to offer custom made
fashion apparels. Thereafter, Sainsbury can distribute its fashion products with the help of online
shopping sites where products are available 24*7 (Dent, 2011). In addition to this, it is widely
used and most innovative method that help company in getting large range of response and
increasing the sales and profitability of Sainsbury. Further, online distribution is also regarded as
best method as it solve the problem of out of stock and enhance the sales of company. The
company can also distribute its customized clothes with the help of own dedicated stores
available in different parts of UK.
3.3 Setting price for customized clothes
Setting right price for the right goods is very crucial as price is a key factor responsible
for the sales of product. Since, the sales of company are declining from past 5 years it is required
for Sainsbury to set appropriate price for its products. This will further help in improving the
sales of company and sustaining the cut throat competition from brands like, Burberry, Marks
and Spencer etc. that provides luxurious clothing apparels. Therefore, it is required for Sainsbury
to give proper consideration on the price factor of its product (Borges and et. al, 2005). The
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company can use two different pricing strategies to cater the demands of two segment.
Therefore, for behavioral segment company can use competitive pricing and charge prices
resembling with the competitors. Thereafter, for pyschographic segment, Sainsbury can adopt
price skimming strategies which means high prices are charged in the beginning of launch of
product and lowering it down with the time. The customized clothes are not provided by any of
the rivals of Sainsbury therefore, company can easily do price skimming and charge high price
for providing custom made designed clothes. Thereafter, for non branded products Sainsbury can
adopt value based pricing which refers that customers have to pay for the value received.
Therefore, with the help of different pricing strategies company can target wide range of
customers and increase the sales of company.
3.4 Promotional practice for customized clothes of Sainsbury
The promotional activities will assist Sainsbury in communicating the value of product to
target customers. This further help in encouraging the sales and profitability of company.
Therefore, it is required for the marketing manager of company to select appropriate promotional
technique for the customized fashion apparels of company. However, the manager may adopt
two different promotional techniques. In order to attract the customers of behavioral segment,
company can use advertisement in television, social networking sites, point of sales and
hoardings (Ellis, 2005). This will generate awareness among public about the benefits of
customized clothing and boost the sales of company.
Thereafter, to attract the customers of pyschographic segment, Sainsbury can market its
products with the help of celebrity endorsements. This will further lead to the brand building and
increase the sales of high end fashion products of company. Company can also advertise its
customized fashion apparels in e- shopping sites, fashion magazines. In addition to this, company
can conduct fashion shows where fashion apparels of Sainsbury will be promoted by fashion
models (Ettouzani and et. al, 2012). Further, personal selling is another best option for
promoting the sales of customized clothing products of Sainsbury because customer can easily
explain its needs and desires associated with thee product.
3.5 Additional elements of existing marketing mix
Apart from the 4 Ps of marketing; product, price, place and promotion Sainsbury can take
help of additional marketing mix for framing suitable marketing strategy. These elements further
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assist Sainsbury in reaching the customer in best possible manner. Therefore, given below are the
additional elements of marketing mix that must be incorporated into the marketing plan of
Sainsbury.
Physical evidence: In order to ensure repetitive buying from customer it is important for
company to pay special consideration on the looks and layout of store. With this aspect,
Sainsbury should modify the design of store in order to attract the customer to visit and
buy the custom made fashion products (Grinstein, 2008).
Processes: It is important for company to improve the manufacturing and selling
processes to ensure the superior quality of product. This will further help in encouraging
the sales of Sainsbury. Thereafter, company will assure the quality of raw material used
in production so that good quality of customized product can be guaranteed.
People: It is required for company to appoint fashion designers who will assist in
designing the fashion clothes as per the customized needs of customers (French and
Bennett, 2015). Thereafter, company requires staff who will deal with customers in warm
manner and understand there needs and preferences.
TASK 4
4.1 Marketing mix for two different segments
Sainsbury can prepare contrasting marketing mix for identified segment. With this aspect,
company can target different market segments with different marketing techniques.
Marketing Mix for Behavioral Segment
The marketing manager of Sainsbury can divide the customers on the basis of their behavior,
brand loyalty and buying pattern.
Product: The company is offering customized fashion clothes as per the demands and
desires of customer. The product is of standard quality to keep the reputation of company
Place: Individuals belonging to this segment mostly are mostly girls and ladies who like
to visit malls and prefer excessive shopping (Henley and et. al, 2011). In order to target
them, Sainsbury can sell customized clothes through their own dedicate outlets in
shopping malls
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Price: The prices of product can be kept little high as company is providing products as
per the needs and preferences of customers.
Promotion: The company can use personal selling where sales man will explain the
attributes of customized product and customer can also detail out its requirement.
Marketing Mix for Psychographic Segment
Product: The customized fashion apparels should be according to the current fashion
trends.
Place: Apart from the dedicated stores, online stores are the best place to offer custom
made fashion apparels.
Price: Though price is not a major issue for the customers within psychographic
segment, but in order to sustain the competition and earn the profit, company can adopt
price skimming strategy (Dooley and et. al, 2012).
Promotion: Sainsbury can use promotion through celebrity endorsements. Addition to
this, online marketing can also be used.
4.2 Difference between marketing to business rather than customers
Marketing the customized fashion products to business is totally different than marketing
it to customers (Wicker and et. al., 2012). Marketing to business is a tough process and require
strong efforts to be put in by the marketing manager of Sainsbury. The difference is explained as
follows:
Marketing to business Marketing to customers
It involve minimum intermediaries. It involve too many intermediaries
The company use direct channels to
communicate to the prospective customer.
The company use indirect direct channels to
reach the target customer.
The objective of target business customers
behind buying the product is to increase their
own profit (Berthon and et. al., 2008).
The customer purchase the product for their
personal use.
Engine optimization and websites designing Social media marketing, celebrities
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are some marketing techniques used for
promoting product to business.
endorsements, advertisement are some
marketing tools used for advertising product to
customers.
4.3 Difference between international and domestic marketing
The global marketing varies on many aspects from domestic marketing. The global
marketing help in reaching wide range of customers while domestic marketing is restricted to the
nation boundaries and only domestic customers can be targeted. Since, Sainsbury is facing tough
competition and its sales is declining continuously is important for company to promote its
product in global market.
Domestic marketing International marketing
It refers to marketing within home country; UK It refers to marketing across the nation
boundaries at global level.
Political factors play a minimal role Political factors play a crucial role
It involve minimum risk High amount of risk is involved
It requires small amount of capital outlay It involves large capital outlay
The product is developed and planned as per
the needs of domestic market
Here, product is developed according to the
requirements of international market (Lyons,
2012).
The control of marketing activities is easy The control and management of marketing
activities is tough.
CONCLUSION
In a nutshell, it can be concluded that marketing principles play a significant role in the
success of business enterprise. The customized fashion products can assist company in boosting
its sales and increasing the profitability of company. They will further ensure the maximum
satisfaction to customer. Company can use identified strategies for their segmentation, targeting
and positioning of their custom made fashion products to build customer value and increase the
customer base of Sainsbury.
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REFERENCES
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