Foundation of Marketing

This document explores the foundation of marketing, including the characteristics of business orientation, PESTLE analysis of Morrisons, the influence of social media and technology on buying decisions, and an explanation of the marketing mix. It also discusses the concepts of planet, people, and profit in modern marketing.

Foundation of
marketing

Table of Contents
ESSAY BODY.................................................................................................................................1
Determine characteristics of business orientation with example...........................................1
PESTLE analysis of Morrisons..............................................................................................2
Explain how social media and technology influence decision process for buying................3
Explain marketing mix ..........................................................................................................4
Explain the term planet, people and profit in context to modern marketing..........................5
REFERENCES ...............................................................................................................................7

ESSAY BODY
Determine characteristics of business orientation with example
In every organisation, managers and leader have to take decision in their routine activities
in order to achieve business objectives successfully. As they have to develop various strategies
and if they do not plan in proper manner then there will confusion among leader what to do
which lead to take lot of time (Berman and Thelen, 2018). Business orientation is orientation
where they focus on using approaches which help them to effectively achieve success of
business. There are four types of business orientation which are mentioned below: Production Orientation: According to production orientation, organisation generally
focus on manufacturing as it means they produce products at low price in order to gain
competitive advantage. The leader should use cheaper raw material as they can buy in
large quantity from different supplier. The example of production oriented is Rio Tinto
as they focus on mining and produce iron, diamond and many other and use cheaper raw
material. Product Orientation: It is related to innovation as organisation innovate new or modify
existing product in market as manager only focus on satisfying customer need such as
they are receiving benefits from product. If organisation improve their product according
to changes in market then they can remain in market for long time (Bernstein, 2017)
Dyson is the best example of product oriented as they innovate new products related to
household items which take regular feedback from customer and also find needs of new
customer so they can retain new as well as existing customers in market. Marketing Orientation: This is the main element of organisation because they advertise
or conduct campaign to attract customer so they purchase their goods and services. The
best example of marketing orientation is Tesco as they market in order to promote their
goods and services as they do marketing thorough social media, campaigns or
advertisement to attract customer and tell them they are providing high quality goods in
market.
 Sales Orientation: The last is sales orientation where they interact with customer to
identify need and demand of customer in market. This help organisation to create a
consumer base and build customer loyalty. The sales orientation is beneficial for those
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organisation who are operating in crowded market. Morrisons is example of sales
orientation as they give discounts, offers which help them to increase their sales in
market in order to achieve business objectives (Ferrell and Ferrell, 2021).
PESTLE analysis of Morrisons
PESTLE is an analysis which is used by organisation to monitor and identify external
factor that directly or indirectly affect business environment. PESTLE analysis of Morrisons
which is explained in detail below: Political Factor: It is an factor that impact activities of Morrisons as it affect profit of
organisation in long term.
Positive impact: The main positive impact during the post Brexit period is that they
support government of United Kigdom.
Negative impact: The negative impact is that due to change in policy, rules and
regulation during Brexit period it affect functions of Morrisons. Economic Factor: In context to Morrisons, there was fluctuation in inflation and
currency that affect the economic factor in organisation.
Positive impact: The main positive impact is that this help Morrison to explore new
opportunity in market as the value of pound is decreased which help them to invest money in
global market.
Negative impact: As oil price is increased so people cannot afford which is negative
affect of Morrison in economic factor. Social Factor: The major impact is that continuously change in trends of customer in
market which impact both negatively and positively in market (French and Gordon,
2019).
Positive impact: Increasing population is the main factor that positively impact
opportunities for business as this help Morrisons to understand need and demand of customer. In
UK education and health sector is growing which is benefit for selected organisation.
Negative impact: As customer purchase some items for long period and buy after some
time this affect sales and profit of Morrisons. Technological Factor: The best way is online retailing which affect sales and profit of
Morrisons.
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Positive impact: This help Morrisons to reduce cost and efforts as many people due to
this pandemic purchase online so it positively impact online sales of Morrisons by using
technology.
Negative impact: The main fear is that there are many competitor in global market which
sell their product online through social media or have their own website. Legal Factor: The legal factor state that they have to comply all rules and regulation
where the company is been operating.
Positive impact: The main benefit is that Morrison comply with all government policies
and regulation such as food safety regulation and many more which help them to retain trust of
customer (Homburg, Jozić and Kuehnl, 2017).
Negative impact: The negative effect is that when they do not comply government rules
then it lead to trouble them. Environmental Factor: The last factor explain that Morrison have taken measures to
protect environment as they reduce the use of Poly boxes in supply chain.
Positive impact: The main positive impact is that Morrisons will reduce carbon emissions
from 26.9% to 30% till the year 2025.
Negative impact: By complying all measures as this increase expenses which lead to low
profitability.
Explain how social media and technology influence decision process for buying
Social media is most important for marketer as it is the best communication tool because
organisation can communicate customer in easy way. By using technology it affect buying
decision of customer this interaction help organisation to identify needs and demand of customer
as per this they innovate and modify products in market. The decision of buying behaviour of
consumer changes as marketer attract them by conducting campaigns and advertising this is the
main which where decision of buying is affected. It build brand awareness as people search
which product is best and what is the price of that particular product. In this way when there is
increase in price in clothes of particular brand then they will shift to another brand that sell
product at cheaper rate (Mansour and Barandas, 2017). The social media is a proof where it
affect business decision of customer as many customer find product useful then they share, give
comment and review which also affect buying decision of other person. Discount, promotion and
offer is the main element which affect the buying decision as organisation can attract new as well
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as existing customer in market. In context to Morrisons, they should promote their goods or
services by using social media which will help them to retain customer on order to increase sales
and revenue of organisation. As they can give offers, discounts and many other which help them
to attract which lead to affect behaviour of consumer. As they can give regular feedback and
solve problem of customer which will also affect buying decision (Newman, Peck and Wilhide,
2017).
Explain marketing mix
Marketing mix: It defines the set of tools or action used by the organisation to promote its
product in the market. It helps the enterprises to achieve goal successfully. It helps to develop
strengths and avoid weakness. It consists 7Ps which is describe below in the context of
Morrisons:
Product: It defines the article which is offered by organisation for sale in the market. In
the disclosure of Morrisons, the selected firm is deals in fresh food product (Rather and
Hollebeek, 2020). Good quality of food provide the organisation competitive advantage.
Company have its own manufacturing production facilities which helps to delivers best fresh
food product. They also pay attention on the packaging and quality of products.
Price: It defines the monetary term or compensation given by one party to another party
in return for their goods and service. In the context of selected company, it offers a good quality
of product and services at lower price to attract the customer. Company use many techniques for
pricing its product such as premium, psychological, geographical and bundle pricing. Company
always focus on the price so that it does not become reason to the customer to shop from
somewhere else.
Place: It refers the location where target customer find it convenient to shop the offering
product and services. In the context of selected company, the company operate 660+ stores
across the UK. Company also develop the operational website for online shopping. Brand also
place their product to sale in many supermarket and hypermarket across the country. They sale
their product in many retail stores as well as the online stores also.
Promotion: It defines the tools used by the company to promote its brand. It includes
advertising, PR promotion, personal selling and etc. In the context of selected firm, they use
many strategies to influence the customer through digital marketing, reward programs, and
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conventional marketing. Company place advertise in many consumer related magazines and
newspaper. They has loyalty card program in which customers are allow to redeem point in
exchange for product which help to promote the brand. Company also produces TV ads to
increase the visibility (Visconti, Peñaloza and Toulouse, 2020)
People: It refers the service personnel who are involved in the sale and purchase of goods
and services. Service personnel includes all employees from front line sale staff to the managing
directors. In the disclosure of selected organisation, they created many job opportunity for local
people and gave regular training session for skills development. There are 117000 workers
employed in the supermarkets.
Process: It refers the various activities or procedure which helps complete the task. In
context of selected company, they organise their process systematically in all the operations.
Process are clearly communicated and defined to every employees so people related to process
can communicate management easily. It also provide good chain of supply to their online stores
and offline stores.
Physical Evidence: It define the proof of any object, equipment and item that are present
physically. In the context of Morrisons, designs of store is very attractive and creative. It has
more than 600 stores in UK. It has 1 national centre and 7 regional distribution centres present in
UK.
Explain the term planet, people and profit in context to modern marketing
The three 'P' which are planet, profit and people which is also termed as triple bottom
line. The triple bottom line explain that profit made by business itself. It is a framework which is
impacted by three factors which are financial, social and environmental as it is a framework that
assess their performance in order to create value for business (Zahay, 2021) The three term of
people, planet and profit which are mentioned below: People: This is the main factor which means that organisation not only have
responsibilities if shareholder but they should also have responsibility towards customer,
employees, supplier and many more. This help company to interact with each other
which help them to operate business in systematic manner. For example, Tesco maintain
positive work environment which help them to motivate employees on organisation.
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 Planet: Organisation use model and framework as they also take measure to protect
environmental effect. They should use renewable energy resources and recycle products
etc. For example, Morrisons stated that they will reduce carbon emissions from 26% to
30% till the year 2035.
 Profit: This is the last and important factor as they want to earn profit by increasing sales.
In modern marketing, it can de done by compensating employees fair, maintain cordial
relationship with supplier, innovating new products and many more which will help
organisation to take proper decision in order to earn profit.
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REFERENCES
Book and Journals
Berman, B. and Thelen, S., 2018. Planning and implementing an effective omnichannel
marketing program. International Journal of Retail & Distribution Management.
Bernstein, J., 2017. Standing room only: Marketing insights for engaging performing arts
audiences. Springer.
Ferrell, O.C. and Ferrell, L., 2021. New directions for marketing ethics and social responsibility
research. Journal of Marketing Theory and Practice, pp.1-10.
French, J. and Gordon, R., 2019. Strategic social marketing: for behaviour and social change.
Sage.
Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
Science, 45(3), pp.377-401.
Mansour, D. and Barandas, H., 2017. High-tech entrepreneurial content marketing for business
model innovation. Journal of Research in Interactive Marketing.
Newman, T., Peck, J. and Wilhide, B., 2017. Social media in sport marketing. Routledge.
Rather, R.A. and Hollebeek, L.D., 2020. Experiential marketing for tourism destinations. New
York, NY: Routledge Publications.
Visconti, L.M., Peñaloza, L. and Toulouse, N. eds., 2020. Marketing management: A cultural
perspective. Routledge.
Zahay, D., 2021. Advancing research in digital and social media marketing. Journal of
Marketing Theory and Practice, 29(1), pp.125-139.
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