Roles and Responsibilities of Marketing Function in ALDI
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This report covers the key roles and responsibilities of the marketing function in ALDI, a discount supermarket chain. It also explains how these roles and responsibilities relate to the wider organizational context. The report further compares the ways in which ALDI applies the marketing mix to achieve business objectives.
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Contents INTRODUCTION...........................................................................................................................................3 TASK 1..........................................................................................................................................................3 P1 Explain the key roles and responsibilities of the marketing function for the chosen organisation.....3 P2 Explain how roles and responsibilities of marketing relate to the wider organisational context.......4 TASK 2..........................................................................................................................................................6 P3 Compare the ways in which the chosen organisation applies the marketing mix to the marketing planning process to achieve business objectives.....................................................................................6 TASK 3........................................................................................................................................................11 P4 Produce and evaluate a basic marketing plan for the chosen organisation......................................11 REFERENCES..............................................................................................................................................15
INTRODUCTION Marketingisdefinedasthesetofactivitiesandprocessesfordeveloping, communicating, exchanging and delivering offerings that have some value for clients, partners, customers and society at large(Baker and Saren, 2016). This is the function that helps firm in communicating value and benefits of its productto customers in an effective way. The contribution of marketing is high in increasing sales and profit ratios of company. In the present assignment, chosen organization is ALDI which is a discount supermarket chain headquartered in Essen, Germany. This report covers key roles and responsibilities of marketing function and its interlink with other departments. Apart from thismarketing mix is applied to planning process for attaining business objectives. At last marketing plan is developed for ALDI in this project. TASK 1 P1 Explain the key roles and responsibilities of the marketing function for the chosen organisation In the competitive business market, it is highly essential for every business organization to effectively promote its products and services in market and convey its value and benefits to customers. The marketing concept refers to the strategy that companies execute to satisfy needs of customers, maximize sales, increase profits and beat market competition. There are five conceptsofmarketingwhichcompaniesadoptandimplement.Theseconceptsincludes production, process, marketing, selling and societal marketingconcept. In Cadbury, marketing plays vital role in developing with customers. There are various roles and responsibilities of marketing function in ALDI which are defined below: Defining a managing brand: Marketing plays vital role in defining and managing brand of company. It helps in creating effective brand image of firm in market. In ALDI, marketing function helps in developing eye catching image of brand in eyes of customers that helps in attracting them more towards firm(Desselle and et. al., 2016).
Market research: One of the key responsibility of marketing function is research which assist company in determining market opportunities and and get better understanding regarding needs of customers. It also assist firm in understanding strengths and weaknesses of competitors so that effectiveactionscanbetakenforprotectingbusinesswithexistingcompetitors.By understanding industry reports, contacting customers to survey their attitudes and needs and analyse market data, the marketing department of ALDI conduct its own research. Communication:Marketing department develop communication materials and plan campaigns to promote goods and services in market. Depending on the budget availability, company develop email marketing programs, advertising campaigns, create promotional content for firm website and right product Publications or press release. In ALDI, marketing function helps in developingeffectiveCommunicationswithcustomersandsatisfyingtheirneedsand requirements in more effective way(Brassington and Pettitt, 2013). Sales support: Marketing function highly contributes in increasing sales of the company. Its main responsibility is to promote products and services of company in market which in turn results in increasing sales and maximizing profitability. In ALDI, marketing function plays crucial role in communicating its products to market which supports in generating sales for product. It assist maximizing profit ratio and attaining golas and objectives of company. P2 Explain how roles and responsibilities of marketing relate to the wider organisational context Roles and responsibilities of Marketing department are interlinked with other departments of business enterprise. Functions and activities of one department are highly linked with others. For collecting proper information about market trends, manager of ALDI requires to conduct research. Interrelationship of Marketing function with other department are defined below: Human Resource Department and marketing Human Resource Department in Marketing department are interrelated with each other as human resource higher skilled employees for marketing department so that all its activities can be carried out in an effective way(Dibb and Simkin., 2013). The main role of Human Resource Department is to recruit and select skilled workforce which is able to accomplish predetermined goals and objectives of company. ALDI, a crucial role played by Human Resource Department for marketing by hiring skilled and Competent workforce for company so that its operations are
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carry out effectively and firm is enable to promote its goods and services in more appropriate manner. Marketing and Finance Marketing and Finance are considered as the essential pillars of company on which the whole revenues and profits rely. The main role of finance department is to to prepare budgets and allocate funds to each department it so that at all the activities can be performed successfully. It helps in running day to day operations of company so that at its goals and objectives can be accomplished. In ALDI, Marketing department it is interrelated with finance department as it allocates budget to marketing for conducting its activities in proper way and attains set targets of company(Jones and Rowle., 2011). Marketing and production department The main responsibility of production department is to convert raw materials into finished goods for satisfying needs and requirements of customers. Effective products can be developed only when company has the knowledge and understanding about needs and preferences of customers. In ALDI, Marketing department provide information regarding market trends customer needs to Production department which helps it in manufacturing products as per the market needs. In this way, both departments are interlink with each other. Sales and marketing function: Activitiesofsalesandmarketingdepartmentareinterrelatedwitheachother.Effective marketing is the way through which managers enable to improve sales and profits of business. The contribution of marketing department is high in maximizing sales by attracting numerous customers towards firm.In ALDI, marketing department use various tools and techniques that helps in conveying value and benefits of product to customers. Effective promotion of product by marketing department helps sales department in generating higher sales and competing their sales target. All this will help firm in generating high profits and maintaining its sustainability in market for longer term(Desai, 2013).
TASK 2 P3 Compare the ways in which the chosen organisation applies the marketing mix to the marketing planning process to achieve business objectives. One of the fundamental model in marketing is the "Marketing Mix". It is mainly defined as the set of marketing tool principally uses by company to pursue its defined marketing objectives in the target. In simple words, it is a combination of series of factors that can be controlled by a firm in order to influence customer purchasing pattern regarding a particular product or service. 7P’s of MarketingALDILIDL ProductTheCompanyaffirmto providereasonableor affordable food products data usually made of same quality likeanyotherbranded product.ProductsofAldi generallysourcedfrom selected supplier and further brandedundertheirown name as to have an adequate control over the ultimate cost andtotalproduction (Zgarrick, 2015). Other than beverages and food product, thefirmalsodealsfeeling freshvegetableandfruits, stationery, beauty and health products,householdgoods, electronic items, clothes and soft tools. Apart from this, it is also having a mobile virtual It is also a supermarket chain thatgainedpopularityfor selling products at discounted price. Also it has positioned itself as "go to shop" where customers can get mediocre range products at reasonable prices. It offers large variety ofproductsincludingfruits and vegetables, frozen item, bakeryproducts,health related items, baby products, cleaningandhousehold goods,spiritsandbeers (Desselle and Alston, 2016)..
network operator in countries likeGermany,Australia, NetherlandandBelgium. Place:ALDI is selling its product in morethan18countries. According to a source, it has beenidentifiedthatalmost every week a new store opens in Britain. It procure all its itemsorproductsinbulk quantityfromdifferent suppliersand store them at their local warehouses(Lamb andet.al.,2011).The companyisgaining popularity for maintaining a regionalappearancelike placing the name of it stores according to specific region. For example: In Switzerland, Aldi is well known as Aldi Suisse. Apart from this, aims tosatisfyitscustomerby sellingitsproductonline. Itoperatesinmorethan 10000locationsvia28US and European Countries. Its maindistributioncenteris situatedinU.S.The distribution channel of Lidl is well organized as eliminates theconceptofmediatoror middle man i.e. it believe in doing direct dealing from the localmarket.Itemployees more than 315000 employees who all are well trained and groomedwithanaimto satisfycustomers. PriceThecompany gainspopularityforselling cheappriceandquality productswhichultimately resultsininmakingtheir Thecompanygainshigh competitiveadvantage because of its unique strategy called as zero waste and no frills(DibbandSimkin,
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customer base stronger. As a result,Aldigivestough competitiontoitsavailable competitors. Apart from this, there are various other pricing policiesusedbyfirmlike psychologicalpricing, competitive pricing and unit pricingstrategy(Hauer, 2011). 2015). As per these strategy, products are displayed in the cartonswhichareactually goingtobedeliveredto customer.Thestorealso keepsaminimumlevelof requiredstaffinorderto avoidextracost.The companymainlytargets middle Class Section of the societywhoarelittleprice sensitivebecauseoftheir limitedbudgetofspending. The company claims to offer such products that value their moneyandprovidethem satisfaction.Someofits commonpricingpolicy includepenetrationpricing andcompetitivepricing strategy.Theresultof adoptingsuchstrategies enablefirmtogainhigh competitiveadvantageover itscompetitors. Promotion:Aldi claims to use cost saving strategyforpromotingits producti.e.itbelievesin investingverysmall proportionateornegligible Thecompanyhasadopted several promotional strategies forseizingtheattentionof customers.Apartfrom focusingonprovidingbest
amountforpromotingits products in the market. Infact, in Germany it is not keeping amarketingdepartmentfor advertisingitsgoodsor services.Allitoffersare some Swap and Save & Super Buys that seizes the attention ofcustomer.Althoughin countrieslikeAustralia, United Kingdom and United States,companyismaking largeuseofelectronic, displayandprintmediato advertiseitsstores (Papasolomouand Melanthiou.,2012). quality product at affordable prices, Lidl also laid stress on bringing the consumer inside astoresothathe/shecan actuallybuy(Jonesand Rowley, 2011). Some of its popular channel of promotion includenewspapers, magazines,leaflets, television, ad campaigns and hoardings.Along with this, it alsobelieveintakingthe advantageofdigital marketing in sending SMS to regularcustomerandkeep themupdatingaboutlatest offers. People:The firms lacks in providing lowercustomerservice because theiremployees do notassistitsconsumersin selectingproduct.Thisis probablybecauseAldihas kindlydesignstorelayout where everything is classified or divided into proper section whichultimatelyminimizes therequirementofnumber ofemployees on every floor. Thisironicallygiveshigh AtLidl,employeesare gettingattractivesalaryfor their hard work whilst on the job.However theirperformancesare evaluatedonthebasisof numberofitemsscanned during the whole day. High training standards are set only toensureonecanscan maximum number of product fastly and conveniently that ultimately results in meeting
competitive edge to the firm over its others competitors as Aldi become more focused on givingtrainingtoits employees and making them more effective and efficient. customerneeds(Lamband McDaniel,2011). Process:As the firm has designed its storelayoutinavery thoughtfulmannerwhich resultsinfindingproduct easily or in less time. Also the company focused on keeping limitednumberofproducts that are made of high quality andsellingitatreasonable rate.Alongwiththis,its productsusuallyhavelarge barcodeswhichhelptheir employeesinquick identification and fast billing (Perreault.,2010). Theprimaryprocessof company is mainly emphasize onbuyingandsellingas much as good as possible at anaffordableprice. Involvement of customer in anyoftheirprocedureis minimal.Everythinginthe store is placed or kept in a well-organizedmannerthat makes easier for consumer to lookafterproductswithout creatingmuchchaos. Physical Evidence:Thecompanygained popularityallacrossthe world for its global pricing, standardization and business processes.Nearlyabout 85%of its total stock are sold underitsownprivatelabel and rest all from well famous Traditional and linear laid out mannerofLidlgivesthem highcompetitiveadvantage overitscompetitors.This helpcustomersinfinding goods in easiest manner. Also becauseofitsYellowand Bluebrandlogocolors,it
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brands. Its strategy of keeping everyday low prices remains sameevenatgloballevel which results in giving them highcompetitiveadvantage over their competitors. become easier for customer to recognizeandfindit throughout their surrounding areas(MalhotraandBirks, 2012). TASK 3 P4 Produce and evaluate a basic marketing plan for the chosen organisation. Marketing plan: It refers to the formal document that provides direction to marketing manager of firm for their future course of action. It includes all the information that helps firm in promoting its product effectively(Rossi and McCulloch., 2012). Company overview: ALDI is one of the well known multinational supermarket chain which is operated in around 20 countries. The company is headquartered in Essen, Germany and it is operated more than 10,000 stores at different places. It was established in year 1946 by Karl Albrecht and Theo Albrecht. The company wants to introduce new service for customers which makes it easy for them to made payments of their purchases without wasting their time. This will helps company in attracting more number of customers towards firm. Mission: The mission statement of ALDI is “ To satisfyneeds of customers by providing them high quality products.” Vision: the vision statement of ALDI is “to be a leading discount supermarket chain in all over the world and gain high loyalty of customers”. Objectives: To increase sales of products by 20% in next 2 years. To maximize market share from 15% by year 2021. STP:
Segmentation: It refers to the process of dividing market into homogenous subgroups. ALDI divides its market on the basis of behavioural segmentation. Target group: The target group of ALD includes household and individuals. Positioning: ALDI positioned itself strongly in Germany. Its unique selling point is spend a little, live a lot. Firm sale high quality products at affordable prices whichcreatesgood brand image of company in market. Marketing budget Particulars1st year2nd year3rd year4th year5th year Initial money50008000100001400018000 Investment15000250003000014000 Total500023000350004400032000 Marketing outlay Promotion60003000400030003000 sales publicity20002000300020002000 Direct selling40002000500040004000 Total1200070001200090009000
Monitoring and control: After preparing the overall plan, it is the responsibility of marketing manager of ALDI to implement it successfully and monitor and control all the activities in order to ensure that all activities are done in right way. Firm also take corrective measures if required (Silver and et. al., 2012). CONCLUSION As per the above mentioned report, it has been concluded that marketing plays crucial role in success and growth of organization. It helps firm in generating high sales and profit ratios and attaining pre set goals and objectives of company. There are various a key roles and responsibilities of marketing including promoting and maintaining brand image, communication etc. Different departments within firm are interlinked with marketing department and work collectively to attain objectives of company. Marketing mix includes set of marketingtools which are used by company for perusing its market objectives. Marketing plan is a blue print that depictsaboutfuturecourseofactionsthataregoingtobetakenbyfirm.Successful implementation of plan helps in attaining goals and objectives of company.
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