Table of Contents INTRODUCTION...........................................................................................................................3 TASK 1............................................................................................................................................3 P1 & M1 Describe and difference of marketing techniques in the market products in organisation.................................................................................................................................3 D1 Effectiveness of the use of techniques in marketing products in one organisation..............6 P2 Limitation and constraints of the marketing..........................................................................6 TASK 2............................................................................................................................................7 P3 M2 & D2 Marketing research to developing the marketing plan along with limitations and recommendations........................................................................................................................7 P4 Use marketing research for marketing planning...................................................................8 P5 Explain how and why groups of customers are targeted for selected products...................10 P6 & M3 Marketing mix for a new product along with potential customers.............................1 CONCLUSION...............................................................................................................................1 REFERENCES................................................................................................................................3
INTRODUCTION Marketing is an important requirement of each organisation that provide effective support in making good brand image in marketplace. Furthermore, it is a process that aid to management in promoting and delivering products and services of organisation in marketplace. Marketing managers of organisation plays very important roles as they not only attracts large number of customers towards firm's offering but also support the organisation in making its brand image in market. Two organisations are taken in this report such as ASDA for private which is a retail firm and based in UK along with Transport for London (TFL) for public that is a transport service provider whose responsibility is to providing services across the London. Present assignment will describe about marketing techniques which are used by organisations for marketing products. Limitation and constraints of marketing along with a coherent marketing mix will also covered in this project. TASK 1 P1&M1Describeanddifferenceofmarketingtechniquesinthemarketproductsin organisation. Marketing refers to an activity that is undertaken by organisation for promoting or selling their products and services in market. In addition, it plays very important role in organisation as it provides reliable information regarding market trends that ultimately supports the firm in making effective decisionfor makingbrand imageinmarket.In current scenario,each organisation have to face several challenges in earning profit in market because large number of rivals are exist in market due to this, large number of marketing techniques are used by companies for attracting customers towards their offerings. Background of organisations-ASDA is a supermarket chain that was founded in 1949 along with based in UK whereas, Transport for London is a local government body that is responsibleformanagingtransportationservicesacrosstheLondon(Sargeantand MACQUILLIN, 2016). Both organisations are operating their business functions in different sectors i.e. private and public. They both uses various survival and growth strategies so as to maintaining their sustainability and growth in marketplace. Some of these strategies are described as under:
Growth strategy– This strategy is related with covering large market-share so that offerings can be reach and satisfy the requirements of large number of customers. Each organisation of marketplace whether it is operating its business operations at small or large scale, wants to take growth and sustainability in marketplace. For this, these business organisations uses several growth strategies like market penetration, product expansion etc. All these strategies are falls under Ansoff matrix that is used by ASDA and TFL for promoting their goods or services (Palmer, 2012). Ansoff Matrix is described as below: Similarities Market PenetrationIn this kind of strategy, both organisation uses their existing products and services in present marketplace. Market DevelopmentIn it, existing products are promoted by both firms in new market areas so as to developing their market share. Product DevelopmentIn it, new products or services are developed by organisations so that large number of customers can be attracted towards organisation and its offerings. DiversificationUnderthisstrategies,organisationshavetoenterinnew market with new products or services. Differences ParticularsASDATransport For London Market penetrationIn it, ASDA manufactures quality productsand supplies them into present market so that good brand imagecanbemaintainedin marketplace.Alongwithit, companyalsoorganisesseveral discount offers on their offering so that large number of customers can be attracted towards offering. While,TFLisfocusingon maintainingtransportation services across the London so thatmorerevenuewillbe gained by organisation.
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Market DevelopmentASDA operates its function across the UK due to which they makes innovationsintheirexisting products on regular basis so that sustainability can be maintained in market.Fore.g.companyhave increased capacity of their stores by renovating them so that large numberofcustomerscanbe servedinasingletimeperiod without any difficulty. While, TFL performs its duties acrosstheLondonbutthey have no need to develop their marketbecausecompanyis supportedbygovernment authority and large number of customerspreferstheir transportationservicesrather than private service providers. Product developmentManagementofASDAalways tryingtomakinginnovationsin their stores so that customer base can be maintained in marketplace. Fore.g.companyhavestarted click and collect service so that customers who don't want to going anywhere for shopping can receive products as per their demand at home. Organisationhavealso introduced Travel card for the daily passengers so as to make easytotransactionswith company in less time. DiversificationASDA have made its expansion in Petrol filling station which having smallconveniencestoreforthe customers. Whereas,TransportFor London is a public transport serviceproviderthatcan expanditstransportation services across the UK in order to gain huge revenues. Survival strategies-These strategies are used by organisations for making their strong sustainability in marketplace (Smith, 2012). These are also used by both organisations whose example are described as below:
Branding– Brand can be defined as a name, slogan or logo these are made by companies in order to attracting customers towards their offerings. As retail sector is becoming more competitive in current situation due to which management of ASDA have implemented diversifications and extension strategies for making expansion in other sectors i.e. energy supplying, credit cards etc. For this company have not make changes in their logo whereas they have made slogans for this 'chosen by you' which shows company's value pricing policy (Smith, 2012). Whereas, TFL organises campaigns for spreading awareness regarding driving guidelines so that road accident can be overcome in city. Relationship Marketing– This strategy is used by organisations for making strong relations with buyers so that profitability can be increased in market. TFL also uses this strategy as they provide discounts on monthly recharge to travellers on their travel card. Whereas, ASDA provides gift cards to customers in festive seasons for making good relations with customers. D1 Effectiveness of the use of techniques in marketing products in one organisation Effectiveness of use of techniques in marketing products- All these techniques and strategies are beneficial for ASDA as with the help of it, large number of customers are attracted and healthy relations will be build that leads the organisation towards growth and sustainability in market. These strategies also supports the organisation in maintaining products in their stores as per the market trends and customer's requirements so that any difficulty not be faced in marketing of product. P2 Limitation and constraints of the marketing. Marketing is an important part of organisation because it assist the firm in improving its sales figures and brand image in market. Due to which, various legislations are framed by government of UK for protecting the customers from illegal practices along with restricting the organisations for doing it. Some of these legislations are given as below: Goods protection act, 1979-This act is related with protecting the right of customers when buying any goods or services from sellers (Bacik, Gavurova and Fedorko, 2015). This act can be considered as a limitation for marketing of each organisation if provided product is not accordingthe mentioned quality. Therefore, management of ASDA have to conduct marketing activities in limited manner. Consumer protection from unfair trade, 2008-As per this act, each customer have right to get fair treatment from sellers. It states that any organisation have no right to lie with
customers in terms of quality or pricing. For example- ASDA wants to remove the old stock from their stores due to which they have started scheme i.e. limited stock grab opportunity for attracting customers. In this situation, customer will buy products immediately but in real company have enough stock. Therefore, this act of company can considered as an unfair treatment that shouldn't be perform by company. Data protection Act, 1998– This legislation provide responsibility to sellers that not to use personal information of customers in illegal practices otherwise they have to pay penalties which is not good for brand image of organisation. TASK 2. P3 M2 & D2 Marketing research to developing the marketing plan along with limitations and recommendations. Marketing research plays very important role in development of marketing plan that's why each organisation conducts market research so that all relevant data can be gathered for developing market plan. From the above taken organisations, ASDA have decided to conduct market research for renovate their stores with an objective of increasing space for serving large number of customer. Along with it, they have decided to gather relevant informations about it from the loyal customers so that it can be identified that their decision is correct or they have to make changes in it. There are mainly two methods of research i.e. qualitative or quantitative that can be used by organisation for conducting market research. These methods are described as below: Primary– In this kind of data collection method, researcher have to make questionnaire for collecting data internally whereas, in order to gathering data externally investigator can conduct personal interviews or surveys (Baines, and Page, 2013). Secondary–This method is used by researcher when they have limited time and funds. Further, information can also collected in two kinds i.e. internal or external. For internally collecting the information, researcher can use company records whereas, commercial data or retail statistical data can be used for collecting data externally. Qualitative–It is also a method of investigation in which researcher have to collect the relevant informations for taken decision of management of ASDA. This method of investigation
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mainly focuses on opinions of customers rather than gathering data in mathematical manner. For collecting data in this method researcher have to use interviews, observations etc. Quantitative research– In this, researcher have to collect statistical and mathematical data that defines what changes should be made by organisation for improving customer serving capacities. In it, investigator uses surveys, questionnaires for collecting data in statistical form. Contribution of Primary / Secondary, Internal/ External in developing marketing plan along with limitations and recommendations –Primary data is a kind of data which is not used by anyone and its reliability is more rather than other methods. As this collected data will support the management of ASDA in identifying the internal and external factors that can restrict them in renovating their stores in UK. Apart from that, through gathering informations frominternallyandexternallyresearcherwillbeableinprovidingbettersolutionsto management for taken decisions. Whereas, main limitation that can be faced by ASDA that gathered information can be changed after a specific time frame so that more dependency can leads the management towards failure of marketing plan (Engelen and Brettel, 2011). For handling with this problem, it has been recommended to the managers of ASDA that they should use the collected information in a specific time-frame so that any difficulty not be faced in developing marketing plan. Contribution of Qualitative/Quantitative in developing marketing plan along with limitations and recommendations –These research methods are also beneficial for making growth and success of decisions. For e.g. statistical data of retail industry, expenses on renovation etc. will provide support to management of ASDA in developing effective marketing plan for future. Main limitation that can be faced by organisationsin conducting these investigation is related with time due to which sometimes, researcher can't provide best solutions for developing marketing plan. For overcoming these limitations and improving validity of market research, management of ASDA have to provide proper time schedule to investigator so that good solutions can be received by investigator for forming good marketing plan. P4Use marketing research for marketing planning Planning for marketing can be defined as a process that defines marketing strategy of firm for future time period. It comprises of overview of firm, internal and external analysis which are framed by organisations for identifying their market position along with achieving goals in a limited time-frame
SWOT analysis Of ASDA StrengthWeaknesses Widerangeofproductandservice offering. Best inventory system Innovative culture Lack of mini stores are lowering the profitability of organisation. Noloyaltycardisprovidedby company for retaining customers. OpportunityThreat Expansioninnewareaslike pharmacies, jewellery etc. Acquisitionofsmallplayerscan provide growth and success in future. Changing policies of government can becomethreatforprofitabilityof organisation. Pressure of maintaining low pricing for theproductscandecreaseprofit margins of firm in future. Pest analysis –This is an analysis tool that is used by companies for analysing external factors which are influencing their operations and profitability in positive or negative way. This tool is described as below: Political– This factor comprises of political stability, tax policies and duties etc. and can impact on overall performance of firm. Government of UK nation is highly stable that can plays supportive role in renovation of stores. Whereas, if tax policies of government will revised then it will be difficult for the managers in making renovation of their stores. Economical– this factor of external environment is related with inflation rates, exchange rates etc. However, consistency of these rates is positive sign for the growth and sustainability of firm. Whereas, if these rates are modified then it can impact on the marketing plan and strategies of ASDA in negative manner (Leung, Xue and Bai, 2015). Social– This element includes culture, taste and preferences of customers. For example- due to not providing loyalty cards to customers sales figures of ASDA are decreasing. Therefore, management of ASDA should include this in their future marketing plan so that any difficulty not be faced by them in future. Technological –It comprises of advanced techniques, uses of robotics etc. that can posses impact in positive or negative manner on the growth and sustainability of organisation.
Sales figures of ASDA are regularly decreasing as company is not using advanced techniques in their stores. Therefore, Management of ASDA should implement digital techniques in order to improving satisfaction level of customers. P5 Explain how and why groups of customers are targeted for selected products TFL is a public body that provides large number of transportation services like buses, rails, Metro, Underground etc. whereas, ASDA is a retail supermarket chain that performs its operations across the UK. Apart from that, market segmentation is a process in which customers and market is classified in several groups on the basis of income, age or preferences. There are mainly five kind of segmentation which are described as below: Demographic– In it population is segmented on the basis of age, gender or income level. In context of ASDA or TFL, both of these firms have targetted middle class individuals due to providing value of money to the customers. Geographic– In it, markets are decided on the basis of locations where the targeted people are living in which both of firms have targeted individuals of UK market because of large presence in UK. Psycho-graphic– Population is divided as per life style of targeted customers. For ex. - Non vegetarian products are more demanded by societal individuals of UK due to which ASDA can introduce new chicken products in affordable prices. Whereas, digital payments are also increasing so that TFL can launch their own payment application for increasing satisfaction of travellers (Malhotra and Malhotra, 2012). Behavioural-In it population is being segmented on the basis of brand loyalty and buying behaviour of targeted customers. Nowadays, customers are more attracted towards those products or services which are falls under their budget. Therefore, this kind of segmentation will be prove beneficial for both firms like TFL or ASDA because they believes in satisfying the needs by providing value of money to them. Benefit– In this kind of segmentation, population is divided on the basis of perceived value that is providing to customers by offering products and services. Both organisation charging less money on their offerings and providing value of money to them. Targeting-Targeting can be defined as selection of particular group of customers to whom organisation wants to sell their products or services. Selection of these are based on buying behaviour of customers.
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The products of ASDA and TFL along with kind of segmentation are described under in a table: ProductMethod of segmentationProfile of customers Toys (ASDA stores)DemographicLittle boys Cigarettes (ASDA stores)Psycho-graphicYoung adults or mature men. Chickenproduct(ASDA stores) Psycho-graphicYoungsters and mature AirwaysBenefitPoor people Rental BikeBehaviouralMiddle-class individuals CabPsycho-graphicBusiness class travellers
P6 & M3 Marketing mix for a new product along with potential customers. Marketing mix is a strategy which a company uses to promote its brand or product in the market. In context of ASDA, they are launching a new product in the market that is beef burger. For increasing the sale of this product ASDA needs to develop marketing mix strategies to achieve its targets within the market that it serves. These strategies are as follow: Product- A product is a substance that is manufactured for sale. It can be a service or an item which is offered to a market to satisfy the need of a customer. In the reference of ASDA, it is a British supermarket retailer which is going to produce a new product that is beef burger. Potential targeted customers of organisation are youngsters and middle-class individuals. Price– As ASDA has a large range of product portfolio so it should adopt low price strategy after launching a new product. If ASDA wants to be succeed its beef burger then it should introduce discounts and allowances to the customers and sale it on a cheap and reasonable price. This strategy can help them to create high sales volume and large profit margins. Place– It is a very crucial point in the marketing of a product. In every industry, customers mostly come where they can reach easily. In refer to ASDA, customer can easily purchase beef burger from their websites and from their stores which is in the several places in UK. For attracting these customers value pricing strategies will be adopted by ASDA. Promotion– It is refers to all the strategies undertaken to make the product or service known to customers and trade. To increasing the sale of beef burger ASDA needs to adoptaggressivemarketpolicies.Thesepoliciesincludenewspapers,hoardings, television channels, and many others. They can also promote their beef burger on their official websites so they can earn a great profit and will succeed in the market. CONCLUSION It has been concluded from the above discussed report that marketing plays very important role in building wealth and brand image of organisation in market. Marketing also comprises several strategies like growth and survival that provide support organisations in making good relations with customers. In addition, role of marketing research is also effective
that ultimately assist the organisations in developing plans for marketing. Along with this, segmentation and targeting of products are also beneficial for developing products as per the demand of customers. It is also concluded that for developing marketing plan PEST and SWOT analysis are also essential because it supports the management in identifying the present situations of firm in market. 2
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