Marketing Strategy: An Exploration

This assignment delves into fundamental marketing principles and practices. It examines diverse perspectives on marketing strategy, encompassing topics such as fair trade coffee promotion, social marketing campaigns, brand awareness, and the influence of marketing mix elements on brand equity in the IT software sector. The assignment also touches upon global retail divestment strategies and online marketing principles. Students are expected to analyze these concepts and their practical applications across various industries.

Marketing Principles

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Elements of marketing process.........................................................................................1
1.2 Benefits and cost of marketing orientation.......................................................................2
2.1 Analyze Macro and Micro environment...........................................................................2
2.2 segmentation criteria to be used for service in different markets.....................................3
2.3 Market coverage strategy for a services provided by Holiday Inn...................................4
2.4 how buyer behavior in relation to the market segmentation............................................4
2.5 New positioning for the selected services of Holiday Inn................................................4
3.1 How products are developed to sustain competitive advantage.......................................5
3.2 How distribution is arranged to provide customer convenience.....................................5
3.3 How prices affects the organization's objectives and market conditions.........................6
3.4 How promotional activity is integrated to achieve marketing objectives........................6
3.5 Analyze of the additional elements of the extended marketing mix................................6
TASK 2............................................................................................................................................7
4.1 Plan and recommend marketing mixes for the two different segments in consumer
markets...................................................................................................................................7
4.2 Develop a marketing plan for B2B and B2C services......................................................7
4.3 Suggest on implementing a marketing strategy in International market and domestic
market.....................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Holiday Inn is a multinational brand of hotels headquarters in Denham, England. This
hotel was founded by Kemmons Wilson on 1st August 1952 at Menphis. It is one of the largest
hotel chains operating in the world with the around 435,299 bedrooms in 3,463 hotels hosting
around 100 million of guest every night in a year. Marketing is the activity conducted by every
business organization in order to increases its sales by knowing and analyzing the customers’
needs and wants. Increase in sales in turn will aid the company to achieve its set goals and
targets. The principles of marketing are used in order to plan all the organization activities by
following the analytical series. Therefore, the following report is going to depict about the
various elements of marketing. This report shows about macro and micro environmental factors
which affects the marketing decisions of the company. In this report target strategy for a selected
product is also define. At the end, various elements of marketing mix are studied in order to plan
the organization activities.
TASK 1
1.1 Elements of marketing process
Understanding the market place and customers need and wants:- The first element of market
process say that an organization should make an efforts to understand the market situation and
needs and wants of the every customers in order to produce the products according (Ferrell and
Hartline, 2012 ).
Design a customer driven marketing strategy:- Once customers needs and wants are known
than company should prepared a market driven strategy which in turn will aid the company to
understand the customers more properly.
Construct an integrated marketing program that delivers superior value:- After the
formation of marketing strategy an organization should construct the marketing plan that aid the
organization to delivers the superior value.
Build profitable relationship and create customer delight:- Next step which company n to
undertake is company should try to build the profitable relationship with its customers.
Capture value from customers to create profit and customer equity:- At last company
should make an efforts to capture the value of the customers in order to generate the profit and
customer equity.
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1.2 Benefits and cost of marketing orientation
Market orientation is the approach that focus on identifying and meeting the needs and
wants of the customers. Market orientation aid the company to generate more revenue by
increase it sales but at the same time it increases the cost of the company (Golding and Peattie,
2005 ). Market orientation aid the company to identify the needs and wants of the customers.
Identifying the needs and wants of the customers help the holiday Inn to produce the goods and
services according to there requirements. Market orientation also aid the company to find out the
level of competition present in the market and at the same time it also aid the company to
produces its accordingly. But at the same time it increases the cost of the company. Analyzing
the need and wants of the customers increases the expense of the company. Increased expenses
in turn reduces the profit margin of the company.
2.1 Analyze Macro and Micro environment
Macro environment factor are the factors which affects the working of the organization
externally. These are the uncontrollable factors that affects the company decision, performance
and strategies. Macro environmental factors include the government and society (Henley, Raffin
and Caemmerer, 2011). On the hand, Micro environment factors are the factors which affects the
company within the business organization. It also affects the performance and decision making
power of the organization. Micro environmental factors include competitors, customers and
suppliers.
PESTLE analysis of Holiday Inn is as follows:-
Factors affects
Political
factor
 Political situation of the company is not good.
 There is a high change of terrorism.
 It can also faces various problems due to the imposition of European
Union policy.
Economic
factor
 High rate of inflation can affect the working of the hotel.
 Change in the value of GBP against variety of currency affects the
profitability of the hotels.
Social factor  Increased role of social media proves one of the beneficial factors for
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the hotel.
 Change in family patterns and change in value of society aid the n hotel
Holiday Inn to increase its sales.
Technological
factor
 Overall development of the technological infrastructure incidental to
catering industry proves to be one of the important factors for the
development of the company.
Legal factor  Performance of the Hilton has been directly affected by the introduction
of employment law in United Kingdom.
 The nature of competitive regulation and risk of penetration has badly
affected the business.
Environment
al factor
 Environmental factor of the company is not good. Dispose of carbon
emissions from hotels and other business industry increases the global
warming.
SWOT analysis
Strength Weakness
High brand image due to the use of excellent
promotional methods. Offering a large range of
hotels to the customers to choose from.
Large number of competitors with limited
market shares.
Opportunities Threats
Country unique seasonal offers and good
quality services
Increasing cost of operations indirectly
affecting the rates of the hotel.
2.2 segmentation criteria to be used for service in different markets
Market segmentation is the market strategies that at the company to find out the target
market by knowing the customers need and wants. There are different types of market segment
on the bases of which company can select its target market (Huang and Sarigöllü, 2012). Some
of them are Demographical segment, Geographical segment, psycho graphic segment and so on .
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Demographical factors:- In demographic segment company will focus on middle level people.
Company will make an efforts to attract the middle class group peoples by offering them quality
service what they want at low .
Psycho graphic factor:- in this market segment company will focus on the interest of the middle
class people. Company will make an attempt to attract more and more customers towards the
hotel by offering them variety of offers like one week complete package, 15% on two days stay
and so on.
2.3 Market coverage strategy for a services provided by Holiday Inn.
Holiday Inn will use the Concentrated strategy in order to attract more and more towards
the services provided by them. Concentrated strategy is the strategy in which company target a
specific market segment and audience (Kim and Hyun, 2011). This strategy let the company to
invest more on resources used for the production process and marketing a particular area. But at
the same time use of this strategy increases the risk of competition among the society. This
strategy is normally used to attract the small group of people. Thus, in order to implement the
concentrated strategies successfully company will be going to target the oligopoly market.
Oligopoly market is a market in which only handful number of competitors are presents with low
substitute products.
2.4 how buyer behavior in relation to the market segmentation
Buyer behaviors is made up of various internal and external factors which affects the working
of the company. Change in the need, wants, preference and likes also affects the buyer behavior.
Demand of the customers about a particular services provided by the Holiday Inn affects the
rates of the services provided by the them. Middle class people buying behavior change with the
various offers and discounts provided by the Holiday Inn. Buyer buying behavior also increases
the level of competition among various hotel industries. On the other hand internal and external
business environment also affects the buying decisions of the customers/buyers.
2.5 New positioning for the selected services of Holiday Inn.
Positioning is outlined as developing a product as well as the brand image of hotel in the eyes
of consumers. This process also includes improving the perception of consumers regarding the
experience they had after using the mentioned company’s product (Nwankwo and Gbadamosi,
2010). Further, if customers like Holiday Inn services then they will reach either to the hotels for
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the stay or purchase the same services online. Moreover, Holiday Inn has clearly mentioned the
price and size of services which will attract the minds of guests. Further, mentioned hotel's motto
is to attract the middle class as well as higher upper class people. By seeing this, Holiday Inn
produces the best hotel and motel services at an affordable price. Further, hotel can implement
price positioning strategy as Holiday Inn can set the price of n different rooms according to
different purchasing power and interests of the guests and even by considering the aspect
demographic and physiological approach towards the services.
3.1 How products are developed to sustain competitive advantage
Creates brand loyalty:- Holiday Inn a hotel management company in order to increase its sales
should make an efforts to develop the brand loyalty of the company (Kotler, 2008). This can be
achieved by providing valuable services to the customer at low prices.
Unique merchandise:-Company can also increase its profitability ratio by providing unique a
services to the customers who are availing the hotel rooms and services.
Differentiate and positioning:- company should make an efforts to differentiate and position
the various services provided by them from that of others. Differentiating the services from the
others will aid the company to generate more revenue at low expenses. At the same time it will
also aid the company to increase its profit margin from that of other hotel management
industries.
Research:- In order to attract more customers towards the hotel; Human resource manager of the
hotel should conduct a research in order to know and understand the needs and wants of the
customer's. Knowing the customers demand will aid the company to develop various services
according to there desires.
3.2 How distribution is arranged to provide customer convenience.
Customers satisfaction level does not depends on the offers made by the company, it depends
on the various services provided by the company (Olimpia, 2011). But, at the same in order offer
the various service to the customers selection of right distribution channels is very important. If
right channel is not selected by the hotels industry than the service and scheme provided by them
will be useless. Thus , in order to attract more and more customers and let them know about the
schemes and services offered Holiday Inn should use the advertisement method. By using this
method company will be attract large mass of people within the short period of time.
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3.3 How prices affects the organization's objectives and market conditions.
Different types of pricing strategies which can be used by the organization in order to achieve its
aims and objective are as follows:-
1. Premium Pricing strategy
2. Penetration Pricing Strategy
3. Economy Pricing strategy
4. Price Pricing strategy
5. Psychological Pricing strategy
Therefore, one of the pricing Strategy which is used by the Holiday Inn is Penetration Pricing
strategy. In this strategy companies try to capture market share by entering into the market where
less number of competitors are present (Palmer and Quinn, 2007). The main aim to use this
strategy to create awareness in the mind of the people about the various scheme, services and
products provided by the company.
Thus, by using this strategy Holiday Inn will be able to let the more and more customers know
about the schemes and services offered by them against that of its competitors.
3.4 How promotional activity is integrated to achieve marketing objectives.
In order to achieve the organization marketing objectives company need to undertaken the
various activities into practice. Out of which promotional activities play the most role.
Promotional activities aid the company to make aware the customers about the services and
scheme offered by them. Therefore, some of the promotional methods which company can use
are:- Advertising and public relation. Advertising is the method to attract large mass of
customers within a short period time (Rosen, 2009). This method normally creates awareness
among the adults and young age people. On the other hand good public relation with the
customers also increases the sales of the products which in turn increases the probability of the
Holiday Inn.
3.5 Analyze of the additional elements of the extended marketing mix.
Marketing mix is performed by Holiday Inn after distinguishing the marketing strategy. Apart
from the major four P's, author has extended 3 more P's and these are people, process and
physical evidence. These are explained as below: People: Employees are the one who increase the sale and productivity of the hotel as they
produce the best quality hotel rooms in order to attract large customer base (Fassin, Van
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Rossem and Buelens, 2011). Further, by recruiting right qualified staff at right time
increases the efficiency of Holiday Inn as these individuals give rise to personal selling
and other sales promotion activities of the services provided. Process: Managing quality and cost of services is one of the crucial requirements of cited
hotel. Further, Holiday Inn should have well tailored process in order to minimize the
cost. Moreover, online and physical sales help Holiday Inn to increase revenue as these
measures attract consumers .
 Physical evidence: This shows the way in which Holiday Inn and its services are
perceived. Further, physical presence of services are the rooms of the hotel with all
innovative features explains the usability of rooms provided by the hotel .
TASK 2
4.1 Plan and recommend marketing mixes for the two different segments in consumer markets.
The existing plan will focus on best hotel services of the Holiday Inn is seeking its presence in
UK. Further, two consumer segments are the demographic and physiological which will have a
lot of concentration. Marketing mix for the same has been discussed as below:
 Product: Newly designed plan for best hotel services will attract both segments as
Holiday Inn will come up with the best designed plan and quality.
 Price: Competitive pricing will be set by Holiday Inn in order to accomplish the task of
knowing the purchasing power and preferences of the guest staying in the hotel and this
will also help Holiday Inn to develop a loyal customer base.
 Place: Best hotel services with different rooms and price accordingly will be available at
Holiday Inn. This gives a convenient position to customers for choosing their selected
rooms according to their affordability (Prett and Morari, 2013).
 Promotion: Selective promotion through sponsorship and sales promotion will help
Holiday Inn in saving high cost and leads to development of effective measures of sales.
4.2 Develop a marketing plan for B2B and B2C services.
Marketing services to business is different from marketing services to consumers. The marketing
measures for business and consumers which Holiday Inn will follow have been explained as
below:
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 Product: Holiday Inn focuses on developing high quality rate of services in consumer
market is quite low. On the contrary, for business unit, Holiday Inn deals with enhancing
higher sales through developing flexible room charges to enhance the demand in B2B
market. Price: Holiday Inn adopts cost plus pricing measures to generate the demand within
business units and to enhance the sales as well. On the contrary, for consumers,
competitive pricing policy with tariff charges has been adopted by the hotel. Place: For marketing services to business units, Holiday Inn approaches different travel
companies because limited number of buyers is available in the market (Lederer. and
Maupin, 2015). However, for consumers, effective measures have been developed to
increase the sales with quality rooms provided.
 Promotion: Promotional measures such as advertisement and discount policies are
adopted to attract more guests towards services whereas for business units, Holiday Inn
adopts sales encouragement through building up corporate relations with online and
offline travel concerns measures for developing high discounts to create effective sales of
services.
4.3 Suggest on implementing a marketing strategy in International market and domestic market.
International market means transfer of services from one country to another whereas in domestic
market, services are transferred within same country. Further, in international market, exchange
is done on the basis of different currencies whereas in domestic, it is with the same currency. In
context to this, strategies implemented in international marketing and domestic market
constitutes with the following factors:
 Cultural factors: International marketing has to effectively consider the cultural values
and factors of a particular region to intensify the consumer perception and values of
services. Holiday Inn efficiently focuses on evaluating the overall cultural values before
marketing services in the international market (Ali and Talwar, 2013). In domestic
market where Holiday Inn knows the preferences of the local people, it becomes easy for
them to market their services that international market. Global branding: For developing global brand image of corporate, Holiday Inn develops
effective branding measures within market. Moreover, company has developed adoption
strategy which stresses on marketing services by following the local needs and demand.
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This strategy works on both the markets international as well as domestic. For example:
Holiday Inn employee staff from the remote local areas such as if they have a hotel
branch in India, they employee staff that is localities which works in their favor.
 Best discount policies: For maintaining its hotel position globally and in domestic market
they tie up with different travel agencies online so this helps they in getting more of
profits and more number of customers.
CONCLUSION
It can be concluded that present report is based on effectual penetration about marketing
principles that help the business units in making effective decision for growth and development
of companies. Further, these measures help the hotel in enhancing market sales by creating
effective market demand and through effective services promotion. Further, this present report
has showcased the strategies which are adopted by Holiday Inn in order to establish a global unit
that is operating efficiently in the global market as well as in domestic market.
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REFERENCES
Books and journals
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’
perceptions of business ethics and CSR-related concepts. Journal of Business ethics.
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Ferrell, C. O. and Hartline, M., 2012. Marketing Strategy. 6th ed. Cengage Learning.
Golding, K. and Peattie, K., 2005. In search of a golden blend: perspectives on the marketing of
fair trade coffee. Sustainable Development. 13(3). pp. 154-165.
Henley, N., Raffin, S. and Caemmerer, B., 2011. The application of marketing principles to a
social marketing campaign. Marketing Intelligence & Planning. 29(7). pp. 697-706.
Huang, R. and Sarigöllü, E., 2012. How brand awareness relates to market outcome, brand
equity, and the marketing mix. Journal of Business Research. 65(1). pp. 92-99.
Kim, J. H. and Hyun, Y. J., 2011. A model to investigate the influence of marketing-mix efforts
and corporate image on brand equity in the IT software sector. Industrial Marketing
Management. 40(3). pp. 424-438.
Kotler, P., 2008. Principles of Marketing. 12th ed. Pearson Education India.
Lederer, A.L. and Maupin, D.J., 2015. A World Wide Web Primer for Small Business. Journal
of Small Business Strategy. 8(2). pp.1-12.
Nwankwo, S. and Gbadamosi, T., 2010.Entrepreneurship marketing: principles and practice of
SME marketing. Routledge.
Olimpia, N., 2011. From Internal Marketing to Human Resource Marketing. A Conceptual
Framework of the Human Resources Marketing. Ovidius University Annals, Economic
Sciences Series. 11(1). pp. 1473-1476.
Palmer, M. and Quinn, B., 2007.The nature of international retail divestment: insights from
Ahold. International marketing review. 24(1). pp. 26-45.
Prett, D. M. and Morari, M., 2013. The shell process control workshop. Elsevier.
Rosen, E., 2009. The anatomy of buzz revisited: Real-life lessons in word-of-mouth marketing.
Crown Business.
Online
Ali, H. and Talwar, V., 2013. Principles of marketing. [Pdf]. Available through:
<http://www.londoninternational.ac.uk/sites/default/files/programme_resources/lse/
lse_pdf/subject_guides/mn3141_ch1-4.pdf> [Accessed on 12th December 2015].
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