Marketing Principles and Practices Report: Yummy Cupcake Company

This report provides a detailed analysis of marketing principles and practices, focusing on the Yummy Cupcake Company. It begins by defining marketing and its role in business, discussing the influence of macro and micro factors. The report then delves into the elements of the marketing mix, including product, price, place, promotion, people, process, and physical evidence. Market segmentation methods, such as demographic, geographic, and psychographic segmentation, are explored, along with the benefits of segmenting markets. The report also covers primary and secondary market research methods, the impact of technology on marketing, and the application of the Boston matrix. Furthermore, it examines Yummy Cupcake's segmentation strategies, product life cycle stages, and promotional strategies. The report concludes with a discussion of pricing strategies and a summary of key findings, providing actionable insights for the company's business development project.

MARKET
PRINCIPLES
AND
PRACTICES

TABLE OF CONTENTS
INTRODUCTION .........................................................................................................................3
ACTIVITY1.....................................................................................................................................3
1.1................................................................................................................................................3
1.2................................................................................................................................................4
1.3................................................................................................................................................4
1.4................................................................................................................................................5
1.5................................................................................................................................................5
2.1................................................................................................................................................5
2.2................................................................................................................................................6
2.3................................................................................................................................................7
2.4................................................................................................................................................7
2.5................................................................................................................................................8
ACTIVITY 2....................................................................................................................................8
3.1................................................................................................................................................8
3.2................................................................................................................................................9
3.3................................................................................................................................................9
3.4................................................................................................................................................9
3.5..............................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing principles includes various activities such as identification and selection of
goods, identified product price and selection of distribution chain to reach the customer place.
This process also considers development and implementation of promotional strategy for a
product. The report is based on Yummy Cupcake, which is a leading company in baked cupcakes
in UK (Yummy Cupcake company, 2016). According to the case study, the organization is
planning to expand business hence, wants to improve marketing practices. It covers the impact of
macro and micro factors on marketing planning. It discusses the different element of marketing
mix for the business. Further, the methods and benefits of market segmentation are discussed in
the report. Here in the report, target market for marketing activity of Yummy Cup Cake is
identified. Lastly, it covers the promotional and pricing strategies for above-mentioned company.
ACTIVITY1
1.1
Marketing is the activity and processes for creating, communicating and delivering
products to customer, clients and society at large. It is the process, which is responsible for
identifying, managing and satisfying customer demands for products, service and ideas.
Marketing identifies the strategy that includes sales technique, communication and development
of products. It is an integrated process, where companies build strong relationship with
customers and creates value for them and gains profits (Kotler and et. al., 2015).
The company uses marketing mix element to promote its brand or product in the market.
The 4Ps are price, product, place and promotion. However, in present scenario the marketing mix
includes other P's such as people, process and physical evidence. Marketing includes:
 Identification, selection and development of goods and services;
 Determination of company product and services price;
 Selection of segment bases and target market;
 Selection of a distribution channel to reach the customer's place; and
 Development and execution of a product promotional strategy.

1.2
For achieving objectives, the products or services must be provided in accordance with
customer needs. The Yummy cupcake company must use marketing strategies to create products
or service awareness. Without marketing, potential buyers may never be aware of company
products. The process is used to promote products and services among target market. Once
product is aware by customers, then it increases chances that they will purchase products. With
marketing strategies, the sales of products can be increased more, means enterprise can earn
good profits (Barghi and Kazemi, 2013). Marketing increases product recall and builds brand
recognition and through this, organization reaches the high expectations of the customers, which
further enhances reputation of company. With the help of effective marketing practices, firm is
expanded and sales can be increased. Hence, the contribution of marketing is in achievement of
organization objectives, creating awareness of product, earning higher sales, increasing company
reputation as well as creating healthy competition.
1.3
The factors, which influence marketing, are:
 Social and political factor:It refers to rules and legislation, which create or prevent
marketing opportunities. Former are changes in the attitude, behavior, believes, thought
patterns and lifestyles of customers, hence all these affect company's marketing
operation.
 Technological changes: The rapid changes in technology can affect the kind of product
that enterprise offer to its consumers. The marketer and their marketing tactics are
affected by fast technological changes, shortening product life cycle and creating great
opportunities for innovation.
 Competition: It is related to the number of similar competitive product brand in the
industry, their size and market capitalization. The competitors of company might directly
influence company's marketing, but it is important for organization to monitor activities
and then design effective strategies (Czinkota and Ronkainen, 2013).
The other external factors, which influence marketing includes natural forces,
demographic factors, economic conditions and government policies.

1.4
The role of marketing in a non-profit organization is to create awareness of its operations.
For example, SLH group of UK uses marketing strategies to target specific population and create
awareness of its operations. Using marketing tactics, it creates awareness about their social
causes of firm. The organization target those people through marketing, which need supports and
pull in those who are interested to gives charity for company. For non-profit organizations, it is
necessary to build its brand (De Mooij, 2013). Marketing helps to boost brand, which allows
helpers, supporters and clients to recognize and trust the organization. This also helps to make
aware of new programs, which reaches out to the community. Further, for increasing reputation
also, non-profit organization uses marketing strategies for the same.
1.5
The Element of marketing process are:
 Segmentation: The segment of market in necessary in marketing to divide enterprise
customers into groups of people with needs. This is effective way to reach each group's
need effectively ,which is give benefits to organization. In the segmentation the company
separate target market through various ways such as demographic, geographic and
psychographic and behavioral.
 Targeting: This element identifies the size and potential growth of each customer group.
After segment the market the enterprise make various strategies and promotional scheme
according to needs of individual of every segment (Hartley and Claycomb, 2013).
 Positioning: Once the firm decides its target market but it is difficult to create an image
of its product in the mind of customer. The enterprise creates a first impression of product
through positioning. The positioning helps to firm to creates its production perception in
the mind of target customer.
2.1
There is 7P's of marketing. They are:
 Product: A product is a commodity, which is produced to satisfy needs of customers.
The mentioned organization product is cupcakes, which is produced in 18 flavors.
 Price: This element is considered as an amount, which is paid by the customer in
exchange of products and services. The customer should fixed its price, which suitable

for its target market and also change according them. The product should always
represent good value for money.
 Place: This element is an important part of the marketing mix. The firm have to position
and distribute goods and services in a place where the target customer find it easily. The
business entity should choose effective place to distribute its product. The cited firm sale
their product through its bakery or cafe and online in some area (Khan, 2014).
 Promotion: It is essential element, which can boost brand recognition and increase
sales. In this element, the company uses different ways to market their products. The
promotion of product is very helpful to increase its product sales and earn more revenue.
The company can promote its products through advertising, sales promotion, personal
selling and also through social media. The cited business entity promotes its products and
services through e- marketing.
 People: Every organization is dependent on the human resource who run its business. In
the, enterprise it is important to have right employees because they are part of enterprise,
which offer products to customer as the product or services enterprise offering. The right
human resource give best efforts to achieve aims and objectives of the firm.
 Process: The system and process of the company impact on implementation of services.
The organization ensures that process is effective, which minimizes costs.
 Physical Evidence: It is important that there should be physical evidence of the service
delivery location.
2.2
The methods of market segmentation are:
 Demographic Segmentation: This is very effective tool to separate a market by many
different factors such as age, gender, income, region, culture and so on. If firm separate a
market through this factor then it helps to make strategies to reach its target customer.
The company separates its target market according to its product nature.
 Geographic Segmentation: This is the most common form of market segmentation,
through which the organization segments the market by focusing on some restricted area
customers. This method is necessary to understand by organization because the marketer

can not make same strategies for customer's who living are at different places (Hanssens
and et. al., 2014).
 Psychographic segmentation: In this method the business entity segments a market
through lifestyles, behaviors, values, emotions and interest of individual. This method
helps marketer to make effective strategies and helps to modify products according
customers needs.
2.3
The methods of segmenting markets are effective because it increases the focus of an
enterprise market segments. If the enterprise has better focus then it will have better output. If the
focus increase then the competitiveness will also increase. If Yummy Cupcake focuses on young
people for its product then the brand recall and equity will be very high. It increase the market
share, which reduce the chance of new competitor entering in market. The market segmentation
helps to modify organization product and services, which suits the target market and customers
(Jobber and Ellis-Chadwick, 2012). This segmentation is help in fixing price of products and
services. Through segmentation the enterprise adopt various pricing strategies, which suits the
market. Further, the benefits of segmenting markets are helps to improve distribution strategies,
better service provides to customers effective and efficient use of resources and understand
market opportunities.
2.4
The methods of researching market are:
 Primary market research: It is a kind of market research where enterprise itself
research the market to collect information, which can be used to improve product,
function and services. This research is start from scratch without having any information.
 Secondary market research: This is market research where business entity collect
information from scratch but also have some information from multiple sources. This
research is collect information through different source such as newspaper, magazines
and the internet.
 Qualitative research: This method of research helps to gather information of what
people actually think about or feel about organization products. In this research the

information collect through focus groups, in-depth interviews and observation
(Hollensen, 2015).
 Quantitative research: This research is based on facts and numerical data rather than the
opinions of the customer. This market research done through surveys and questionnaire.
This method also collect numerical data through previously existing financial reports and
research papers.
2.5
Technology helps organization to grow, creates the relationship, enhance effectiveness
of organization and allows to people to acquire information about one another organization. The
technology, which are used in marketing activity such as mobile phones, internet and customer
relationship management system. The impact of these technology can effect on communication
between companies and consumers. The consumers themselves collect more information about
different products through internet. The internet allows to customer easily collect information
about products. The Internet technology impact on marketing activity is that the customer easily
compare the prices of product. With the help of E- marketing the organization can promote its
products more easily, which gives the better result. The internet allows to organization to expand
their market and to reach a much wider geographical area (Czinkota and Ronkainen, 2013). The
organization with the help of internet technology they easily active or aware about its
competitors activities.
ACTIVITY 2
3.1
The Yummy Cupcake mainly segment their market through demographic, lifestyle and
geographic. The geographic segmentation includes population, climate and region. The
mentioned organization serve local residents. The cited firm estimate the number of potential
customer and make strategies accordingly customer's needs. Through online the enterprise sells
its cupcakes products to location outside its normal geographic area (Strauss, 2016). The cited
business entity separate its market accordingly different characteristics like age, gender, and
income. The Yummy Cup Cake attract younger age of people for its product. Orders for
cupcakes and The special events may come from high income households. The lifestyles

includes consumer perception and attitude about products. The following organization make
cupcakes according consumer needs.
3.2
According Boston matrix there are 4 areas, which helps to understand portfolio of
business and brand. In the stars area the high growth products are includes, which are strong
compared with the competition. The next area is cash cow where the low growth products with
high market share (Boston matrix, 2013.). This kind of products successful and, which need little
investment more. In The question mark area the products includes which are low market share
operating in high growth market. Lastly the dogs area where considers product in low market
share with low growth market. The mentioned Company products are includes in star area where
the products are competing in markets or are strong enough to compare with the competition.
The firm need heavy investment to sustain growth of its cupcakes products.
3.3
The Yummy Cupcake distributed their products through physical and online. The
mentioned firm is offer 430 gourmet cupcake flavors. The following firm sale its cupcakes
products to buyers through store or bakeshops and delivery locally in the Los Angeles area. The
customer orders the cupcakes through its websites. This online distribution increase the revenue
and value of organization (Alves and Vázquez, 2013.). It mainly distributes its products through
in store pick up, Los Angeles delivery and nationwide shipping. It also distributed their products
through franchisees to expand more its operations. It used franchisees and online delivery, which
increase the brand value and enhance its profit.
3.4
The Yummy Cupcake use competition pricing for its products. The mentioned firm used
competition pricing strategy for deciding its product price in comparison with competitors price
(Smith, 2014). In this strategy the organization has three option such as lower price, the same
price and higher price than competitors. The Yummy Cupcake offers higher prices to its buyers,
which is higher than its competitors. This higher prices of mentioned enterprise products is
indicate that the product is exclusive and unique. This strategy effective for mentioned company
to increase its brand value (Czinkota and Ronkainen, 2013).

3.5
The yummy cupcake promote their products through advertising, sales promotion,
internet marketing and with the help of social media. It used promotional strategies like provides
their customer to combo pack where the prices are less. The firm provides to its customer offer
some discounts and conducting contest (Kozlenkova, Samaha and Palmatier, 2014.). With the
help of this strategies the sales are increases. The company promote products weekly, which
allows to customer to buy one and get one free. It sometime offer some percentage off for
college student, service workers and kids. It also promote their activities through sponsor
various events. To promote its products, the company used social media to gain younger
customer. Further, to promote products the packaging, organization logo and color are also
strategies to attract more customer (Hartley and Claycomb, 2013).
CONCLUSION
From the above report, it is concluded that the marketing practices and principle are
necessary to effectively understand the increased value of enterprise and to expand the business.
The firm should plan marketing according to its target customer's needs and wants. Marketing
increases sales, enhances brand recognition and helps to earn more revenue. This further helps to
achieve its aims and objectives. The cited firm must segment or target its market mainly through
demographic factors. There are many kinds of research through which the company analyze
market situation before making marketing strategies. It is necessary to understand marketing mix
elements for enterprise to make effective strategy for its new product or existing products. The
micro and macro factors influence the operations of company and also influences when the
enterprise plan for marketing for new products. Hence, the marketing is necessary for Yummy
Cupcake Company to expand or develop its business.

REFERENCES
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Online
Boston matrix. 2013. [PDF]. Available through:
<http://www.free-management-ebooks.com/dldebk-pdf/fme-boston-matrix.pdf>.
[Accessed on 16 August 2016].
Yummy Cupcake company. 2016. About us. [Online]. Available through:
<http://www.yummycupcake.co.uk/about/>. [Accessed on 16 August 2016].