This assignment analyzes the influence of the marketing mix (product, price, place, promotion) on consumer purchasing decisions specifically for Malang apples sold at the Giant Olympic Garden Mall in Malang City. It delves into how various marketing strategies affect consumer behavior and ultimately drive sales.
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MARKETINGANDITSAPPLICATION 1
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TABLE OF CONTENTS INTRODUCTION.................................................................................................................................3 TASK1.............................................................................................................................................3 Covered in PPT............................................................................................................................3 TASK2.............................................................................................................................................3 2A)....................................................................................................................................................3 How EE limited and other competitor apply the various elements of the extended marketing mix to the marketing planning process to achieve business objectives?.....................................3 2B)....................................................................................................................................................6 Company Overview.....................................................................................................................6 Situational Analysis.....................................................................................................................6 Objectives....................................................................................................................................9 Strategy........................................................................................................................................9 Segmentation, Targeting and Positioning..................................................................................10 Tactics and Action.....................................................................................................................11 Budget........................................................................................................................................11 Control.......................................................................................................................................12 CONCLUSION..................................................................................................................................12 REFERENCES...................................................................................................................................13 2
INTRODUCTION Marketing is regarded as an important activity of the organization which focuses on promoting the products and services at market place with effective strategies and techniques. The process of marketing helps the business entity to grab the attention of customers and through this, competitive advantage can also be acquired prominently (Pike, 2015). Thus, in this respect the present research study has been made on EE Limited which is a mobile phone company operating business in UK. In the study, discussion has been made regarding the concept of marketing considering current and future trends. Moreover, researcher has also described roles and responsibilities of marketing manager at EE Limited and how it assists the entity to enhance the value of marketing concept. Furthermore, discussion has also been included regarding the elements of extended marketing mix and how it aids in meeting marketing and business objectives. Marketing plan for EE limited is also developed in the research study including current marketing situation analysis (through applying PEST and SWOT analysis). Along with this, marketing strategies of EE Limited in different contexts is also stated in the present research report. Lastly, researcher has discussed the ways through which practices under marketing process should be monitored and controlled. TASK1 Covered in PPT TASK2 2A) How EE limited and other competitor apply the various elements of the extended marketing mix to the marketing planning process to achieve business objectives? In the process of marketing, EE Limited needs to involve all the extended elements so that defined aims and objectives of the business can be accomplished. The application of all the elements are discussed in the below section: ď‚·Product: The major product of EE Limited should be mobile instruments of different companies; hence in such respect the business has to make sure that quality products are 3
being sold to the consumers (McDaniel, Lamb and Hair, 2012). This can only assist in meeting the changing requirements of the clients. Quality products can only differentiate EE Limited with its competitors. ď‚·Price: Pricing strategies of EE Limited should be focused on purchasing needs of the clients so that they can purchase mobile products. Regarding this, the business entity should emphasize on promoting numerous products ranging from basic to luxury. This ď‚·Place: In contemporary scenario, all the business entities focuses on selling the products through online sources; therefore in this respect EE Limited should also place the products on online sources so that products can be conveniently sold to the end users (Dibb and Simkin, 2013). ď‚·Promotion: In order to promote the mobile products, EE Limited is required to focus on marketing strategies. This will not only entice the customers; but also it will generate awareness among people regarding variety of mobile products. This is the best way of promoting the business products and services. ď‚·People: People are regarded as the most important sources of the organization as they manage the tasks and activities. Hence in EE Limited as well, people (human resources) have to play crucial role in delivering the services to the end users (Babin and Zikmund, 2015). ď‚·Process: To deliver mobile products to the clients, EE Limited should ensure that they are following systematic procedure in manufacturing and delivering mobile products for the customers. ď‚·Physical evidence: Physical evidence shows that the company exists; henceforth for such aspect, EE Limited is required to accentuate on delivering tangible and intangible services to the clients. In terms of tangible services, EE Limited should focus on delivering quality and suitable products to the clients as per their needs; however under intangible services, EE Limited should focus on better customer services and after sales services. Both plays crucial role in satisfying and retaining the clients. Thus, from the entire discussion it is evident that EE Limited has to apply all the elements of marketing as per the objectives of the company so that long term benefits and success facets can be encouraged (Baines, Fill and Page, 2013). While developing marketing plan, the mobile company should ensure that customers are positively perceiving the brand and 4
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utility of the products. On the contrary, Virgin mobile company has been focusing on this concept as a part of business process. This not only aids in persuading the clients; but also assist in meeting the changing requirements of the end users. Product: At the initial stage, Virgin mobile company used to operate as a prepaid service provider which also helped the firm to enhance the revenue level. Thus, in this respect, the company offers a line-up of feature phone which are mid – range priced for customers. Regarding this, Virgin mobiles have all categories of mobile instruments ranging from basic to smartphones. All the mobile phones have numerous applications and Virgin also offers a package of services which includes exclusive member access (Purvis, 2016). Price: The prices of the mobile products are affordable and can be purchased by middle class people. This helps Virgin mobile company to get maximum attention from the customers due to availability of different products and services. Thus, with the help of affordable prices, the company is able to acquire maximum market share. Place:Placemixshowsthatbusinessentityisdeliveringtheproductsthrough convenient places; hence in this response Virgin mobile company deliver products through the source of online modes (Brady, 2014). This aids the customer segment to order to products online and the business entity delivers the product right at customer’s doorstep. This is one such aspect through which customer satisfaction facets can be encouraged. However, on the other hand, Virgin mobile also has several retail stores wherein people sells the products to the clients as per the demands. Promotion: Promotion plays crucial role in the organization because that aids in promoting and advertising mobile products among the customer segment. In respect to promotional strategy, Virgin mobile company ensures that quality and requisite aspects are being included in promotion strategy. This can encourage customer base of the organization and as a result, more competitive advantage can be created. Further, it can be said that promotional strategies should be highly effective because that underpins marketing decisions of Virgin mobile company (Lane, 2016). People: People are the staff members of Virgin mobile company who play crucial role in delivering prominent services to the clients as per their interest. It has been observed that 5
staff members of Virgin mobile company emphasizes on delivering better services to the clients so that they can be retained for longer time span. ď‚·Process:Processshowsthatbusinessentityhasadoptedappropriatewayof manufacturing and distributing the products to the end users. With the help of adequate focus on process element, Virgin mobile company can eradicate the opportunities of issues in the business processes (Wirtz, 2012). ď‚·Physicalevidence: In terms of physical evidence, it can be said that Virgin mobile company has established its store as a large business entity so that to inform the customers about the availability of new mobile products. In this respect, Virgin mobile also focuses on delivering several benefits to the clients along with the services. 2B) Company Overview EE Limited is a British mobile network operator that has several services related to mobile amenities, internet service. It is a division of BT group and it was established in the year 2010 as a joint venture between Deutsche Telecom and Orange S.A. EE Limited is also considered as a largest mobile network operator in UK which has revenue of around 28 million pounds. It serves to 30 million customers as it is the largest operator of 4G services in Europe (Silver and et.al., 2012). EE owns and operates national 2G, 3G and 4G mobile phone networks in the UK. It has around 700 retail outlets across the country; thus it is clear that customer base of the company is expanding at the same time. EE's 4G network along with its nationwide marketing campaign and store re-branding was also launched in the year 2012. However, EE had early problems and issues of no signal across both its 3G and 4G networks with senior EE staff. Situational Analysis Internal analysis Internal analysis has been conducted with the help of analysing all the internal factors that affects the business practices of EE Limited. In this respect, SWOT analysis has been conductedforidentificationoftheinternalbusinessscenario.WiththehelpofSWOT, appropriate strategies can be developed to manage business practices and operations. StrengthsWeaknesses ď‚·Advanced digital communicationď‚·Brand recall is very weak. 6
company (Reynoso, 2013) More than 27 million customers are under its existence. The business has largest coverage, including biggest 3G network across the UK Large number of retail stores in UK It has initiated 4G services for the customers before any other entity (Kongstvedt, 2012). It serves customers through its network of mobile phone retail stores. Huge availability of competition EE Limited is mainly targeting the business segment; hence it is losing its existing customer base. Inappropriatebusinessactivitiesin global market place. OpportunitiesThreats It has the opportunity to grow more in telecommunication industry GreatplatformofB2Bbusiness growth especially with its 4G services. Peopleareusingmobilephoneon higher extent; therefore EE Limited has the possibility to prosper more in competitivemarket place(Stahlberg and Maila, 2013). Opportunitytohaveownershipin increased smartphone. Asaleaderof4Gservice,itcan enhance its revenue aspects. Developmentopportunitiesthrough post-pay contracts. EnhancedamountofITattackson mobile phones can affect customers from using the data functions on their handsetsandasaresult,itwill significantlyimpedethecompany’s growth and profit margin (Illing and Anders, 2016). Introductionofseveralapplications formobileinstrumentscan considerablyminimizetheuseof voiceservicesdeliveredbyEE Limited. Future growth potential of 4G may leadtoconcentratedcompetition which can affect the existing market share of the mobile company. However,competitionmayincrease from the potential rivalries such as 7
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Vodafone group plc, O2, Hutchinson and Telefonica UK Ltd (Siu, 2012). External analysis In order to analyse the external environment of EE Limited, PESTLE analysis has been conducted. Through this, focus has been laid on contemporary aspects that affects the business practices. Political factors: Areas that are far away from urban centres face many issues and challenges due to mobile network and this is another significant problem for EE Limited. The UK government has also examined several issues in this respect (Mittal, 2014). Government of UK as well as Ofcom both have collaboration and they are together investing amount on providers for amending the network coverage in non- urban areas. In this respect, EE Limited is also required to emphasize on political framework for managing business practices. Economic factors: Last several years in UK were considered a period of decline for EE Limited as well because government’s action plan were insignificant for the business entities. However, the customers of UK have the purchasing power to buy the products of EE Limited; thus it can be said that it is a positive factor for the business entity. In this respect, the business also needs to emphasize on the policies of European Union so that economic issues of the business can be eradicated (Astuti and et.al., 2013). Sociocultural factors: Needs and preferences of customers have been changing widely; therefore it is vital for EE Limited to focus more on socio-cultural factors. This can also assist the business entity to meet the requirements of customers. As a result, it will also help in enhancing brand awareness and customer loyalty. Several new applications and features needs to be added in the service provision so that large number of customers can be enticed towards mobile services. Technologicalfactors:Theconceptofmarketingneedstobeassociatedwith technological facets so that effective services can be delivered to the clients. In this respect, it can be said that EE Limited has been continuously focusing on technological facets so as to bring new mobile products at the market place (Dioko, 2016). Thus, in 8
this respect EE Limited should ensure that data services are prominently delivered to the end users. Environmental factors:According to Ofcom, there are noticeable environmental factors and constraints that should be considered in telecom industry. This can be classified to the production and usage of the handsets. Legal factors:EE Limited is focusing on legal dimensions because that assists the business entity to emphasize on all sorts of legal framework. Under legal aspects, roaming rates have periodically degraded and it is also predicted that it will be removed by the year 2017 (Arguello, 2013). Henceforth, from the entire discussion it is evident that EE Limited has been focusing on social and environmental factors on higher extent so as to enhance their reach. This not only amends customer satisfaction rate; but also aids in enhancing business success and growth facets. Objectives After reviewing and measuring the present telecom industry as well as conducting internal analysis of EE Limited another step in the marketing plan is to formulate objectives for the cited firm. The marketing objectives must be SMART objectives that can be easily accomplish by the company to sustain its position in the competing market (Wirtz, Tuzovic and Kuppelwieser, 2014). The key marketing objective of cited firm is to promote and advertise the new “HD broadband with 4G network” of EE Limited to the customers so that they can purchase their services. Along with this, another objective of the cited telecom company is to increase their customer base through delivering quality services in terms of their speed and reliability. On the other hand, the last marketing objective of EE Limited is to introduce their new technologies related with WAP and services so that they can easily meet the requirement of their users. Strategy Through devising the above objectives of EE Limited another step in the marketing plan is to devise the strategies so that cited firm can easily accomplish the above stated objectives. The marketing strategy must be for short time period so that it may easily contribute in executing 9
the objective of company as the customers’ needs and requirement keeps on changing. The management must also focuses on devising effective marketing tactics and strategies so that it may directly supports in accomplishing the objectives (Foxall, 2014). The foremost strategy to achieve the marketing objective of enhancing the promotion of their “HD broadband with 4G network” is that company must engage in aggressive advertisement and promotional activities related with marketing through social media sites or creating web page of the company so that they can effective promote and advertise their new products and services. On the other hand, marketing strategy must also focuses on conducting the promotional event by EE Limited so that they can easily advertise their new “HD broadband with 4G network” among the customers and showcase their features and reliability so that users can engage in purchasing the 4G services (Mihart, 2012). Another objective is to increase their customer base by delivering quality of services in terms of their reliability and speed. For accomplishing this objective cited company must engage in setting new mobile fare so that customers get attracted towards it that is they must set low price for their 4G mobile services so that it may easily target the lower income and middle income customers to acquire their mobile services. On the other hand, last marketing objective is to introduce their services related with WAP so that they can easily meet the requirement of their users. For this, company must focuses on setting their authorized store in the different region so that they meet the requirement and need of their customers (Al-Hasan, Thomas and Mansour, 2016). Segmentation, Targeting and Positioning As per the criteria of segmentation, EE Limited will be emphasizing on youngsters with middle income group who prefer to buy smartphones. Since, changes are observed in the lifestyle of youngsters; therefore it is crucial for EE Limited to emphasize on suitable segmentation criteria. In order to target mobile products among youngsters, EE Limited will be emphasizing on concentrated targeting strategy which focuses on marketing efforts for specific and definedmarketsegment(Xingang,JiaoliandBei,2013).Thestrategyishighly significant for achieving competitive advantage through analysing the needs of customers subsequently. Hence, within limited resources, EE Limited can execute the strategy in business practices. 10
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ď‚·Apparently, customers are active on social media; hence this leads them to grab knowledge on diverse products and services. Thus, looking towards this aspect EE Limited will be emphasizing on promotional strategies to position its product at the market place. At the same time, emphasis will be laid on pricing element in which affordable prices are set for the customers (Dioko, 2016). This will also enhance customer base and satisfaction aspects. Tactics and Action EE limited will target young segment of the market with the help of concentrated targeting strategy. This determines the tactics and actions that will be undertaken by the firm to reach its target market. Youth marketing will be the most important tactic that will be utilized by EE Limited. This will comprise of use of student media such as school newspapers. The announcements and offers can be sent by the company directly on the mobile phones of the young customers. As the younger segment of the market is impulsive and their attention span is short, the company will adopt the tactic of making a quick pitch (Dibb and Simkin, 2013). Further, the actions of the chosen mobile operator will also comprise of making the most use of social media. This is because the young people are highly active on social media sites and frequently use their phones for comparing prices and features of products and services. Lastly, the chosen organization can adopt the tactic of organizing a social event in order to reach its target market. All the actions and tactics will support the concentrated targeting strategy that the organization plans to adopt. The promotional message can thus be specifically communicated to the young customers. Budget In order to execute the plan, EE Limited needs to develop a budget so that all the activities can be performed under the determined budget (Brady, 2014). As per several activities and practices, EE limited will allocate resources among the product. ActivitiesAmount (in pounds) Market scanning200 Product advertisement300 Retail outlets100 Marketing campaign500 11
Fees to HR resources200 Rent of the place400 Survey procedure300 Total2000 Control All the activities mentioned in the marketing plan should be properly controlled and monitored so that the opportunities of modification can be found out. At the same time, controlling is essential so that to assess the performance of the marketing plan (Babin and Zikmund, 2015). It is essential for EE Limited to ensure that the developed plan is working according to the determined aims and objectives as that can only enhanced the possibilities of success and prosperity. CONCLUSION Concluding the entire research work, it is evident that marketing is a core element that should be conducted as per organizational strategies and objectives. The success and prosperity of business is dependent on marketing activities and processes; thus EE Limited has to ensure that all the practices are optimally managed. The study has also made it clear that marketing activities should be associated with business aims and objectives so that it can create competitive edge over the rivalries. Along with this, it has also been analysed that business issues can be properly addressed through having appropriate focus on organizational activities and processes. 12
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