Marketing Essentials: A Comprehensive Guide to BP's Marketing Strategies

This comprehensive guide delves into the marketing essentials of BP, a global energy giant. Explore the key roles and responsibilities of the marketing function, its interrelationship with other departments, and the strategic application of the marketing mix. Analyze BP's marketing planning process, including SWOT and PESTLE analysis, and discover how the company leverages the 7Ps to achieve its marketing objectives. This study provides valuable insights into the complexities of marketing in the energy sector and offers practical strategies for success.

Marketing Essentials
1

Table of Contents
Introduction......................................................................................................................................3
LO1..................................................................................................................................................4
P1 Explain the key roles and responsibilities of the marketing function....................................6
P2 Explain how roles and responsibilities of marketing relate to the wider organisational
context..........................................................................................................................................7
M1 Analyse the roles and responsibilities of marketing in the context of the marketing
environment.................................................................................................................................8
M2 Analyse the significance of interrelationships between marketing and other functional
units of the organisation.............................................................................................................10
D1 Critically analyse and evaluate the key elements of the marketing function and how they
interrelate with other functional units of an organisation..........................................................12
LO2................................................................................................................................................16
P3 Compare the ways in which different organisations apply the marketing mix to the
marketing planning process to achieve business objectives......................................................16
M3 Evaluate different tactics applied by organisations to demonstrate how business objectives
have been achieved....................................................................................................................20
LO3................................................................................................................................................22
P4 Using your chosen organisation, produce and evaluate a basic marketing plan to meet
marketing goals and objectives..................................................................................................22
M4 Produce a detailed, coherent evidence-based marketing plan for your chosen organisation
...................................................................................................................................................28
D2 Design a strategic marketing plan that tactically applies the use of the 7Ps to achieve
overall marketing objectives......................................................................................................29
Conclusion.....................................................................................................................................31
References......................................................................................................................................32
2

Introduction
In this study, the role of marketing function of BP has been evaluated along with the internal and
external factors that influence the managerial decision-making process. The interrelationship
between marketing and other functional units has also been evaluated and the ways in which the
important elements of marketing functions coordinate with other functions in designing and
developing new strategies have also been discussed. There is also a comparison related to the
ways in which BP and Eland Oil and Gas apply the marketing mix concept in order to achieve
the business objectives and different tactics used by BP to achieve the overall objectives. In the
last part, a business plan has been developed along with analysing the market position by using
SWOT and PESTLE analysis.
3

LO1
4

In this slide, the meaning and importance of marketing function have been discussed. Marketing
involves identifying the opportunities for introducing new products or product range by
conducting research and developing effective promotional strategies. The marketing department
of BP helps the management to develop and implement strategies related to advertising,
distribution channels, promotion and customer service. It enables the management to know the
current trends and uses the latest technology to forecast the sales related to new investments
(Wirtz, et. al., 2014).
5

P1 Explain the key roles and responsibilities of the marketing function.
This slide explains the important marketing functions in BP. Marketing helps in a wide range of
activities such as Promotion, product management, distribution, marketing information
management, financing, and pricing. Promotion enables BP to identify the ways in which the
products can be promoted effectively; product management ensures that the demand and supply
chain is maintained. Marketing helps to design the pricing strategies by conducting research and
surveys in order to compete in the market and marketing information system helps to record and
analyse the data to predict the sales and the revenues that can be generated by developing new
products (Gaskill and Winzar, 2014).
6

P2 Explain how roles and responsibilities of marketing relate to the wider organisational
context.
This slide provides an insight into the roles and responsibilities of the marketing function in BP.
The marketing function designs and implements the strategies for promotion and sales of the
company products. The activities such as conducting market research and developing new
products help BP to diversify the products according to the needs and aspirants of the customers.
The products are promoted by using various platforms such as seminars and exhibitions, which
enhances the customer base and developing appropriate control measures enables the
management to implement the marketing strategies effectively (Johnson, et. al., 2017).
7

M1 Analyse the roles and responsibilities of marketing in the context of the marketing
environment.
This slide contains the details related to the internal and external environment of BP. Internal
environment factors are those which have a relatively minor impact on the managerial decision
making process and these factors can be controlled by the management. These factors are
employees, equipment, materials, product market, and funds.
The external environment factors have a major impact on the business and these factors cannot
be controlled by the management such as political, social, technological and environmental
factors (Adeoye and Elegunde, 2012).
8

The roles and responsibilities of the marketing function in BP can are, to ascertain the present
and future market conditions by conducting regular research and taking feedback from the
customers. The changing needs of the customers have to be ascertained to sustain in the market
along with identifying the new opportunities for investments (Johnson, et. al., 2017). Analysis of
the competitors’ market share enables to understand the strategies used by them to promote their
products and threats have to be identified so that a comprehensive strategy can be developed to
overcome these issues.
9

M2 Analyse the significance of interrelationships between marketing and other functional
units of the organisation
In this slide, the interrelationship between marketing and other functional units in BP has been
discussed. Marketing is one of the most important functions which enables the management to
design and develop the ways in which products can be promoted. Marketing coordinates with
other departments such as Finance, Operations and Human resource in order to achieve the
desired objectives. The finance function helps the management by providing necessary funds
required investing in new ventures and it also generates various reports which enable the
management to ascertain the viability of the various projects. Operations team provide
infrastructure and other requirements of the marketing function. Human Resource selects the
candidates as per the requirement raised by the marketing team to achieve the sales targets. All
these functions coordinate and help the management to achieve the overall goals and objectives
(Kim, et. al., 2012).
10

The significance of interrelationships can be analysed as it enables smooth flow of operations in
BP and also the communication with the organisation is also enhanced. This helps to improve the
quality of the production as well as it helps to design and implement policies related to
manpower planning and optimum utilisation of available resources. A strong interrelationship
enables BP to innovate and develop new methods for providing services and also, the new
opportunities for investments can be identified (Kim, et. al., 2012).
11

D1 Critically analyse and evaluate the key elements of the marketing function and how
they interrelate with other functional units of an organisation.
This slide evaluates the key elements of the marketing function and the strengths of these
elements have been discussed. The key elements are promotion, product management,
distribution, selling, marketing information system, financing, pricing and promotion (Gaskill
and Winzar, 2014).
The strengths of these key elements are, it enables the management to implement the
promotional strategies effectively. The products can be developed as per the customers’
requirements and expectations. The pricing strategy ensures BP sustains in the competitive
market scenarios along with identifying the investments that can be made in new or unexplored
segments.
12

The weaknesses of key marketing elements can be analysed as since each and every aspect
related to the marketing is considered while taking the decisions, there can be delays in taking
important decisions. Also, since conducting surveys and market research activities require huge
investment, it may result in increased input costs.
The interrelationship of marketing and other functions can be analysed as these functions
coordinate so and enable BP to develop new products. The pricing strategies can be developed
effectively. By coordinating with HR, training and development modules can be prepared which
increases the productivity of the sales team. Various reports can be generated which helps to
ascertain the revenues that can be generated by performing various promotional activities and
also, the level of satisfaction of the customers’ can also be ascertained (Kim, et. al., 2012).
13

From this study, the importance of marketing function can be ascertained by the fact that it helps
BP to identify the opportunities for new investments. The policies can be developed to
implement the control measures which enable the management to execute the plans accurately.
Marketing function also enables the management to ascertain the factors that can be controlled
and the ways in which these resources can be utilised effectively. It coordinates with other
functions to achieve the overall objectives of the company.
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15

LO2
P3 Compare the ways in which different organisations apply the marketing mix to the
marketing planning process to achieve business objectives.
Marketing Mix
In this, the different factors and solutions are studied in order to achieve the overall goals and
objectives of the organisation which enables the management to promote the products and
services effectively (Isoraite, 2016). The marketing mix uses the important elements which
define the vital functions of BP and the way in which these elements interact with each other.
Figure 1: Marketing Mix
Source: (The Marketing Mix, 2017).
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Marketing Mix
Elements
Description BP Eland Oil and Gas
Product The products and
services have to be
developed after
ascertaining the
requirements of the
customers (Warrink,
2015).
The products are
designed as per the
changing trends in the
market as well as
customers’
expectation towards
the company.
At present, only crude
oil and natural gas are
being explored in
Nigeria. However, the
company plans to
invest in renewable
energy in future.
Place The products have to
be distributed
effectively such that
customers will be able
to use the products.
The distribution
strategies should be
carefully planned.
The company has
many outlets and
these are placed in
appropriate places so
that customers can
have the access to the
outlets easily.
Since it has a very
limited operation, the
distribution channel
has not been
effectively planned.
Price The pricing strategy
has to be planned
effectively in order to
compete in the
market. Over-pricing
the products may
result in losing the
market share
Since it has a presence
in other foreign
countries, inflation,
demand and economic
factors are considered
while deciding the
price for the products.
The company’s
operations are limited
to Nigeria and hence,
pricing depends on
the production of oil
and natural gas.
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(Warrink, 2015).
Promotion The customers should
be aware of the
different products and
services provided by
the company. This
enables to promote
the products
effectively.
The company has
developed different
channels to promote
its products. Hence, it
has a huge market
share.
It uses social media
and television to
market its products.
People Employees are the
assets of the company
and hence, they have
to be treated
according to their
merit. Performance of
the company depends
on the performance of
its employees.
The company has
undertaken various
measures such as
providing insurance to
its employees and
providing leaves and
other benefits. The
company also
provides regular
incentives to motivate
the employees.
The company has
employee-friendly
attitude and hence,
employees are
motivated to perform
better.
Process All the processes
which enable the
management to reduce
the input costs have to
be implemented.
The company believes
in innovation and
hence, new techniques
are being developed
to reduce the costs.
The use of latest
technology used in
The company is still
developing the
technologies and
hence, it has not been
able to reduce the
costs.
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solar and wind
energies reduces the
input costs.
Physical Evidence Physical location
attracts the customers
to deal with the
company since it
ensures that the
business is rightly
placed and the
location is accessible
to all the customers.
This enhances the
reputation of the
company (Souar, et.
al., 2015).
BP has a very good
brand image and its
headquarters is
located in London city
which is a prime
location for
conducting business.
Eland has its
headquarters in
London and hence,
there is a strong
possibility of its
growth in future.
19

M3 Evaluate different tactics applied by organisations to demonstrate how business
objectives have been achieved
Marketing Planning Process
Figure 2: Marketing Planning Process
Source: (Zkjadoon, 2016).
The strategic marketing plan is developed because it outlines the procedures and techniques to be
followed to achieve the business objectives. The strategic planning has the following steps:
Mission: This is the core idea of starting the business and the main purpose is highlighted while
performing the business activities.
Corporate Objectives: In this, the targets are communicated to the different teams by dividing
the teams into measurable and realistic quantities. Before deciding the targets that are to be
achieved, the company conducts proper research so that realistic goals can be set (Radulescu,
2012).
20

Marketing Audit: This is performed to ensure that the planned marketing activities are being
implemented as per the plans and that there are no deviations from the procedures formulated
while planning the promotional activities.
SWOT Analysis: This tool enables the management to ascertain the current position of the
company in the market in relation to its competitors. Also, the immediate threats faced by the
company which can affect the business can also be ascertained which helps the company to
change its policies accordingly.
Marketing Assumptions: The management ascertains the future sales by analysing the various
reports by using graphs and statistics. The sales are forecasted depending on the prevailing
marketing conditions and the level of demand for the company’s products.
Marketing Objectives: This is done after forecasting the future sales. The marketing team is
assigned to the specific targets that have to be achieved for a given period of time.
Create Alternate Plans: Alternate plans are developed during the planning process in order to
avoid last minute confusion. The uncertain conditions are studied and a backup plan is prepared
so that the goals and objectives can be achieved (Radulescu, 2012).
Marketing budget: The management devises the techniques that can be utilised to implement
the promotional activities. The medium that can be used to promote the products effectively by
incurring minimum costs are identified which enables the organisation to reduce the input costs
of the products and services.
Detailed Action Plan: This is the final stage in which the actual way in which the activities have
to be performed are outlined. This also contains the solutions to the various issues that can occur
while executing the plans (Radulescu, 2012).
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22

LO3
P4 Using your chosen organisation, produce and evaluate a basic marketing plan to meet
marketing goals and objectives
Executive summary: Marketing plan is that written document which helps the business
enterprise in determining its major aims and objectives and also explains the different strategies
and procedures which will be used to achieve desired results. With the help of detail marketing
plan, the organisation can easily analyse its current business situation within the marketplace.
Also, it helps in operating business activities in a systematic manner which allows the company
to survive in the competitive marketplace. The most important purpose of the marketing plan is
to fulfil all the needs of the target market and enhance the profitability of business enterprise
(Leonidou, et. al., 2013). This marketing plan is focused on BP which world’s biggest oil and gas
company.
Company overview: British petroleum is multinational oil and Gas Company and it is located in
England. According to market capitalization, it comes on the sixth position in all over the world.
There are various functions which are operated by this organisation such as production,
exploration, refining, marketing, distribution, power generation, petrochemicals and trading.
Also, this organisation is highly interested in wind power as well as biofuels. BP operates its
business activities in more than 72 countries and produces near around 3.6 barrels per day. The
biggest division of this company is in the United States. In present time, due to globalisation
many oil and gas companies are entering into UK as well as in the international market, which is
influencing huge negative impact on BP and its customer line (Ko, et. al., 2013). By producing
well defined marketing plan it can survive in competitive marketplace and also can increase its
customer base.
Situational analysis: While producing a new marketing plan, it is highly essential for a business
enterprise to firstly analyse its internal as well as external environment. So, that it can decide its
objectives and strategies according to internal and external factors. There are various tools
through which BP Company can analyse its micro as well as the macro environment. For
analysing internal environment organisation can take help of SWOT analysis whereas for
23

evaluating external environment it can use PESTLE analysis. Both marketing tools are following
as under:
SWOT Analysis: This business tool help organisation in analysing its current strengths,
weaknesses, marketing opportunities and threats. SWOT analysis of BP Company follows as
under:
Strengths  The biggest strength of BP organisation is that it is known as world’s
biggest petroleum company and also considered as highly powerful in
the energy market.
 This company have a top position in the marketplace.
 BP is highly popular for its quality products and operations.
 The biggest positive point of British Petroleum is its strong brand
image within marketplace which helps it in attracting a huge number
of customers.
Weaknesses  The biggest weakness of BP is that it damages natural environment
and also it is responsible for the cost of environmental hazards.
 In past years, the production rate of British Petroleum has been
declined.
 In upcoming years, British Petroleum will reach its maturity stage.
Opportunities  Continuous increasing oil prices can help BP in increasing its
profitability as well as productivity.
 There is various new well of oil has been discovered which will
strengthen the economy of the energy sector.
 By expanding business activities, British Petroleum can increase its
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market share and also can enhance its customer base.
 By investing in alternative businesses, BP can secure its future profit.
Weaknesses  Rapid changes in legal rules and policies are influenced such huge
negative impact on British Petroleum as well as its sales revenue.
 The continuous increment in market competition is another biggest
threat to BP.
PESTLE Analysis: This business tool is helpful in analysing external environment or macro-
environmental factor which can influence positive or negative impact on British Petroleum
(Hays, et. al., 2013). Mainly there are six factors which can affect the profitability of BP and
these are followed as under:
 Political factors: There are various political factors such as inter-countries relations,
trading policies and other factors which affect the huge impact on the business enterprise.
The energy market of the entire market is quite unstable because of continuous changing
geopolitical variability and oil requirement of China. It is creating unpredictability among
many countries. All these effect is influencing the profitability of BP as well.
 Economic factors: there are many counties whose economy depends upon the supply of
BP. In the present time, there are many alternate sources of energy which creating a huge
threat to British Petroleum.
 Social factors: BP is an oil and gas company so it has to operate its business activities to
consider average society age, cultural issues, social attitudes and population growth.
 Technological factors: By taking help of digital technologies British Petroleum can
ensure smooth functioning of its business activities such as production, distribution,
refining and marketing.
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 Legal factors: The UK government gives core attention to the health of workers which
are employed in oil and Gas Company. They have to work in oil drilling, distribution and
disposal so; the company should make sure that they will work in safe and secure
working environment. Government have enacted various laws regarding employee’s
safety which should be followed by BP (Driest and Weed, 2014).
 Environmental factors: British Petroleum uses various harmful gases which emitted
because of refining and producing petroleum activities. So, it should concern about
environmental safety.
Marketing objectives: There are various business objectives for which BP is producing a new
marketing plan and these are discussed below:
 To provide quality products to the customer so that they can get high satisfaction
 To maximise market share of the company by 5% within upcoming two years
 To Increase profitability of organisation by 6% within just one year
Marketing strategies: For the accomplishment of marketing objectives, British petroleum has to
follow below-mentioned strategies:
 Segmentation: This strategy will help the company in dividing its business into small
segments. British Petroleum wants to expand its business in Africa and Asia because
these are developing economies (Gilaninia, et. al., 2013).
 Targeting: For increasing large market share and increasing customer base, BP will
provide its products and services in urban as well as rural areas.
 Positioning: After segmenting and targeting strategy next comes positioning strategy in
which BP will promote and advertise its products and services in a new market so that it
can make customer familiar with its products. For promotion and advertisement, it will
use e-mail marketing and distribute pamphlets in rural and urban areas.
Marketing budget:
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Marketing budget
Particulars 1st Year 2nd Year
Initial investment 15000 20000
Capital 25000 20000
Total 40000 40000
Online promotion 20000 5000
Advertisement 10000 20000
Sales promotion 20000 15000
Digital marketing 10000 20000
Total 60000 60000
Tactics and action: British Petroleum will follow all the above-mentioned strategies and budget
plan so that it can accomplish its desired goals in an appropriate manner. Apart from this, it will
focus on its marketing mix tactics which are a product, price, place, promotion, people and
physical evidence. Oils and gases will be the major products of BP and it will sell its products at
low prices and promote them at all available platforms (Rosenbloom, 2013).
Control: In this final step of a marketing plan, marketing managers of company search for those
techniques and method through which they can evaluate the effectiveness of their plan. By
comparing past and current financial statements, business managers of BP can determine the
27

effectiveness of its marketing plan, and on the basis of a difference it can make necessary
actions.
28

M4 Produce a detailed, coherent evidence-based marketing plan for your chosen
organisation
This is the detailed marketing plan of British Petroleum. The plan starts with an executive
summary in which a brief description has been given about marketing plan and its significance
for business enterprise. Moreover, detailed information has been given regarding British
Petroleum and different reasons which are forcing it to produce a new marketing plan (Gilaninia,
et. al., 2013).
While making a marketing plan, British petroleum will analyse its business position within the
marketplace. For this, it will take help of SWOT as well as PESTLE analysis. SWOT analysis
will assist it in analysing its core strengths, weaknesses, opportunities and market threats.
PESTLE analysis will help the organisation in identifying all the macro environmental factors
which are uncontrollable and also can influence positive or negative impact on the company.
After analysis, market situation, BP will set its marketing objectives and on the basis of them
will formulate marketing strategies such as segmentation, targeting and positioning. To operate
activities of a marketing plan, British petroleum will formulate a marketing budget and perform
business activities according to that budget. At last, to analyse the effectiveness of marketing
plan, marketing managers will compare its previous financial position with current one.
29

D2 Design a strategic marketing plan that tactically applies the use of the 7Ps to achieve
overall marketing objectives
The new marketing plan of British Petroleum is highly focused on marketing mix elements
which will help the organisation in achieving its desired objectives in a proper manner. The
strategic marketing plan of BP involves 7Ps which are followed as under:
Marketing mix
elements
Description
Product The main products which will be produced by BP are Oil and
gases.
Price The British Petroleum will sell its products as well as services
at a lower price for attracting a huge number of people.
Place The company will deliver its products in urban as well as in
rural areas so that it can satisfy needs of a large number of
people.
Promotion For promoting the product in new markets, BP will take help
of different online and offline marketing sources such as
social media sites, newspaper articles etc.
People The organisation will produce its products to consider the
needs of its customer and also will provide a good working
condition to its employees so that they can operate business
activities in their comfort zone.
30

Process For better success, The British Petroleum will focus on its all
process of a product, marketing and distribution
(Rosenbloom, 2013).
Physical evidence Highly qualified products and positive nature of staff member
will be the biggest physical evidence of BP.
31

Conclusion
From this study, it can be concluded that marketing plays a vital role in providing the necessary
inputs required by the management to develop promotional strategies. The research and surveys
conducted by the marketing department enable the management to ascertain the prevailing
conditions in the market and possible consequences of failure to implement the improvised
products in the market. The marketing department of BP colludes with other functions so that
new opportunities can be explored and the returns that can be expected. Devising a marketing
plan helps BP to set realistic targets for its marketing team so that it retains the existing
customers and generate the revenues from new avenues. The use of marketing mix and SWOT
analysis ensure that an alternative plan is developed which can be implemented in case of an
emergency which ensures smooth functioning of the business even in the crisis situation.
32

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