The assignment delves into the effects of pricing strategies, integrated marketing communication, and social media marketing on consumer decisions when buying goods. It analyzes how these strategies impact consumer behavior within the context of modern marketing practices.
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MARKETING ESSENTIALS
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Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 P1 Key Roles and Responsibilities of Marketing Function........................................................1 P2 Roles and Responsibilities of Marketing relate to wider organisational context...................6 TASK 2............................................................................................................................................9 P3 Comparison of application of marketing mix by different organisations for achieving business objectives......................................................................................................................9 TASK 3..........................................................................................................................................11 P4 Marketing Plan.....................................................................................................................11 CONCLUSIONS............................................................................................................................14 REFERENCES..............................................................................................................................15
INTRODUCTION Marketing function are some set of activities that are conducted by marketing department for bringing higher efficiencies and effectiveness in task conduction for capturing larger market share along with higher market share. This department is quite useful in popularising company andthis is also efficient in transforming a company into brand. For growth and success of business by analysing new product development(Al-Ekam and et. al., 2012). This function is quite useful in enhancing product's quality by keeping en eye on manufacturing activities along with this, marketing also works for make improvisation in sales volume by promoting products and services of company. Main focus of this assignment is based upon Cadbury company which is operating its business functions in and outside United Kingdom. Industry in which corporation is dealing is confectionery. Cadbury was founded in 1824 by John Cadbury and firstly, product that was launched was dairy milk chocolate, a dairy product. Main aim of company is to make improvements in quality of items to convert firm into brand. TASK 1 P1 Key Roles and Responsibilities of Marketing Function Marketing is defined as process that works for delivery products and services to customers by working on initial concepts that was converted into finished goods. Marketing is a functionthathasfouraspectsandthesefactorsarecalledasmarketingmix.Nameof components are product, price, place, promotion. When activities of marketing is defined, there are some points that must be consider by manager:Need: This is a basic necessities of a person which are important in survival of individual. For example, clothes, food, water, security and basic education.Wants: This type of requirements are raised after satisfying needs. Wants are not permanent because this shows continuous changes. This type of desires could be hold or stop for undecided time. For example food is a need then Cadbury is a want or desire. Demands: When a person is having sufficient buying potential to purchase products and services than it is called as demand. For example, if a person is having prominent income and willing that allows them to purchase items from Cadbury then it is a demand (Arguello, 2013). Development of marketing Trend: There are some trends which is to be considered as trends of marketing: 1
Sales Concept: In earlier times, vendors were focused on selling products that they had manufactured. Main attention was given to ultimate sale and quality of product, taste and preferences of customers, market demands were ignored by vendors. Product Concept: This was evolved right after sales concept. In this era, business owners were started paying attention on quality of products. For example, business owner got the fact that they can increase their sales volume by enhancing quality of product. Once lesser sale volume is okay but compromise with quality of products could not happen as this is a core idea of business(Bačík, RŠtefko and Gburová, 2014). Marketing Concept: When business owner were felt that they not enough in increasing sale by developing better quality of products and services then vendors felt need of a proper publicity of business operations in order to attract more number of buyers. Marketing is a function that includes all activities from concept development to delivery of products and services. This concept suggested that a product could be sold by taking assistance of appropriate promotional tool as quality of item has been focused in product concept. Then new concept pays attention on making some increments in all activities along with paying attention on publicity of business items and facilities. Above are some trends that are developed one after than other. Main reason of these developments are increments in business operations in order to enhance quality and customer base because purpose of corporation has been increased and shifted from profit increment to acquisition of market share. Below are some future trends that should be considered by marketing manager before formulating strategies for business. Future Trends: There are some new trends in marketing and these are increments in efficiencies of operations along with use of promotional actions. In future online advertisement will go hike because of rapid increase in number of internet users. This action is helpful in making products and services eye candy in market. In context of Cadbury, people are becoming more aware about health consciousness and are refusing purchase of high calorie products so it is required from marketing manager that they should manufacture those products which should possess low calories and must be good for health point of view(Bačík, Štefko and Gburová, 2014). 2
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Effect of External Environment on Marketing Activities There are various extrinsic components that have their impact upon marketing activities and which are described as below:Technology: There are lots of emerging technologies that provide positive help in marketing functions. For example Cadbury was used some advertisement on television but now there are many options like internet, social networking and online marketing because people in lots of numbers are using internet.Legislations:ReasonbehindbecomingaglobalisedproductsofCadburyislegal formalities of country. Those nation had less form on the behalf of legislations which invites Cadbury by using their less complicated laws. Political: Marketing department of Cadbury always focus on tax policies of country. For example, Cadbury is making more profits in those nations whom are having flexible tax regulations(Baker and Magnini, 2016). There are some other factors like social, environmental, stakeholders etc. Structure and Operations of Marketing Department: Structure (Source: Organisation of Marketing Department, 2018) 3 Illustration1: Structure of Marketing Department
Operations and roles of Marketing Department:There are many operations and activities are present in corporation that marketing manager has to possess. These functions are described below:Distribution: Marketing manager has to distribute finished products among all retailers and whole sellers so that mediators should ensure efficient delivery and serving of products to consumers. This is also called as physical distribution. Cadbury is using prominent distribution functions like appropriate logistic tools and good transformation system. This term is possessing some points that are stated as beneath: ◦Customer Service: In context of Cadbury, company is running a program that is “How big is your bite ?” According to this campaign, firm is rewarding those who have sweet tooth that is meeting by giving them chocolates bite. Reward is data and airtime which is linked with number by purchasing five collective bar from product portfolio. ◦Order Processing: This is a platform which is used by company to record data that are associated with orders, demands and deliveries. Selling: Marketing function also focused on making improvements in sales volume by enhancing quality of products and services(Cleverley, 2017). Financing: Marketing department also seeks for funds that is allotted by finance department in order to run all activities in smoother manner. Marketing Information System: This system is especially designed for marketing and comprises collecting, storing, analysing and distribution of data according to need on continuous basis. Difference between marketing functions in B2C and B2B aspects BasisB2CB2B ProductAsCadburyisdealinginfood products then quality of items must becheckedandshouldbelongsto high quality measures. For B2B purpose, product along with service of Cadbury company must be in good condition so that business clients could be happy. PriceRate of product must address income level of customers so that client could make purchase of Cadbury items like In this section, value of item must belongs to business consumers and peritempriceislessthanthat 4
chocolate, cookies, gems, bars.which is served to customers. PlaceCadbury placed its products in market by taking help of appropriate logistic methods. BusinessclientsofCadburyare usingtheirowntransportation system for purchase products. PromotionCadburyisoperatingincustomer based products so that they are using someprominenttechniqueslike rewards of mobile data and airtime. Companydoesnotfocuson business clients because these are less in number. SellingMain attribute of selling functions is appropriate publicity tools along with right logistic functions. Sales volume is low in sector of business to business consumers. FinanceCadburyisusingmorefinanceon customerbasedactivitiesbecause consumers are low. Minimumamountoffinancial resourcesarespentonbusiness customers. Marketing Information System Data related to customersmust be storedbytechnologicallysothat accurate information could be used in business operations. Lesscustomerswhichdonot require to gather data. Marketing-mix of Cadbury Company Product: Association is producing food products that must have better quality which should be gained by following all health measures so that future uncertainities could be eliminated. Price: Generally rate of item of Cadbury company is high which is not in budget of middle and lower-middle class persons of society. Corporation is required to produce low priced products for fascinating more number of buyers from low class of society. Place: By taking help of adequate transportation system, Cadbury is able in making on time delivery of products. For example, when venture launched special hearted chocolate for valentine purpose then this item was already available in market and this situation was happened 5
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due to appropriate transportation system which firm is using in every country in which corporation is dealing(Desai, 2013). Promotion: Cadbury is quite in promoting goods and services of products and services by takinghelpof many tools. For example, technological marketing like use of internet, television, emails, development of websites etc. Other tools are rewarding, discounts, gift vouchers etc. to attracts low income level also(Dudu and Agwu, 2014). P2 Roles and Responsibilities of Marketing relate to wider organisational context Marketing as business function:With in an organisation, marketing is a one of the important function through this firm are able to gain high market share as well as increase profits. Manager conducting research to know clients needs and wants and accordingly develop commodity to enhance consumer's gratification. Through this, they are able to manufacture quality of product thus provide competitive advantage at market place. All satisfied buyers make repetitive purchasing of firm product and services and management wants to keep connected with them in order to rise profits. This is exactly Cadbury did in their working rule and plan. For example, quality of commodity is very important for an organisation through this they are able to make satisfy to all workers that build strong clients basis in industry. Marketing division are completed task in the company as per their aim and objectives. They are focus on quality of goods to gain long term sustainability at market. It is possible when they are creating or adding more value inexisting commodity that full fill needs of customers. Marketing as business function includes research to know buyers needs as well as analysis competition and develop strategies and techniques to compete with rivals in an effective ways. Its helps to gain competitive benefits in industry.One of the important aspect is situations analysis of current as well as future opportunities that are available in industry and how can these are gain by Cadbury those are implementing at work place. Others thing that is to used marketing activities to add additional value in goods that increase features of commodity(Forshier, 2012). Marketing is a separate section in an organisation which are generating revenue and income by selling product and services at market place. This are interrelated with other department like human resources department, finance, accounting, operations, research and development or many more. But out all these department marketing is a one of the most important, crucial, and complex division which are responsible for firm market performance as well as losses. They are also focus on production method along with promotions, advertisement, 6
quality of commodity and services etc.Relationship for marketing department with others division of an organisation are explain as follows: Relationship of marketing with other division of an organisation: Marketing activities which are run by an organisation is a interlinked with other section to make final product which are capable to meet customers satisfaction. This concept is broadly discussed by Peter F. Drucker and they say marketing is only function which are guidance to all others section with in the company. It is a philosophy that provide direction to all other operations task to attain extra profits(Guffey and Loewy, 2012). Human Resource Department:Human resource manager of an organisation play vital role in order to manage all employees in an effective manner. Some important function of human resourcedepartmentarerecruiting,selecting,organisingtraining,induction,provide compensation,salary,promotionetc.Allfunctionarerelatedtoworkersandmarketing department employees performance and productivity are enhance due to effective HR policies. FinanceDepartment:Toensuresmoothnessofactivities,appropriatefundingis necessary and it is a responsibility of marketing department that it should arrange financial resources by communicating with finance functional area. Adequate budget is prepared then arranged fund should be allotted according to activities for conducting all task on appropriate time. All actions that take place in Cadbury organisation is done according to the financial capacity of firm. In case of Cadbury, this venture is able in allocating high amount of firm by investing more amount of capital in business. Marketing department has to prepare a budget for business actions and this budget needs approval from finance department of corporation because if company is an alive entity then money works as blood of corporate house. Below are some main points which links marketing department with finance region: ProductionDepartment:-Toensurewhetherappropriateamountofproductsare manufacturingornot,marketingfunctionalareahastogetintouchwithother departments also for getting information about demands. ◦To take decisions upon number of products which should be produce to hit current market needs(Hanlon, 2014). ◦Cadbury is dealing in food products then quality of products should be great otherwise it will effect health of customers negatively. 7
◦Marketingactivitiesshouldbegoodsothatitcouldpopularisethatfirmis manufacturing good items in marketplace. IT Function:- Cadbury is using various type of tools and technologies in conducting its business functions. For example, new and improved vehicles are being use in order to make appropriate delivery, TV, internet, social media etc. for promotion, various information system in order to collect and record data which is related to demand and supply etc. These are some examples that indicates relation of marketing with informational technology functional area. Customer Service:- This aspect is broadly related with marketing department because main basis of marketing function is improving profit margins along with increased market share by serving best quality products to consumers for getting higher satisfactions of consumers(Khan and Adil, 2013). (Source: Relationship of Marketing Function with other departments) Research and Development:- Company produces items in order to cater demands of customers and this action could be done by collecting information about taste and preference of clients. This kind of knowledge are quite able in providing assistance of manufacturing department to tell them how much they have to manufacture. Solution of problem of collecting informations is conducting a research program and for success of this event, marketing function has to provide them topic on that research would be based. Administration: Marketing department is a functional area but always keeps its eye on every other operational activities so that prioritise target could be met by conductingall activities in systematic and adequate manner(Mihart, 2012). 8 Illustration2: Relationship of Marketing with other departments
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Distribution: To provide finished goods in reach of clients then appropriate distribution system should be used by corporation so that adequate delivery of products and services should be made in marketplace. This action is fairly responsible for greater competitive advantages. Sales:- Marketing is nothing without selling because main objective that provides direction to marketing function is selling because by making sales Cadbury would be able in generating its desired profit margin with required market share. For example, main reason of higher selling of Dairy Milk chocolate is that firm is hitting target by popularise chocolate as component that can defeat hunger of customers(Ogunmokun and Tang, 2012). TASK 2 P3 Comparison of application of marketing mix by different organisations for achieving business objectives Marketing-mix:- This is stated as a better strategy then any other. This term has four criteria in which complete business activities are to be included so that all operational and non- operational activities should be accomplish in most beneficial manner. These four criteria are product, price, place, promotion. Now new variant in marketing-mix has been launched in marketplace which is extendedand more three activities would become part of marketing mix categories and these new factors are process, people and physical evidence. Marketing mix is a very useful tool that provide efficiency in activities of marketing department by providing directions. Comparison between marketing mix of Cadbury and Mars companies are stated as beneath: Marketing MixCadburyMars ProductMainlydealinginconfectionery industry. Ontheotherhandthisfirmis dealing in many variants like pet food, confectionery and a service related to animal care. PriceThis statement is fairly fit in case of Cadbury that “Quality comes with a pricetag”andbecauseofthis company set a higher price of their products. Thisfirmtargetsallagegroup personsandentireincomelevel population. So prices are not centred for a specific group. 9
PlaceFirm has segmented its market into three portions like A,B,C or urban, ruralandSub-urbanandusing distribution system according to this idea. This firm has its offices in multiple locationswithassignedsection headsthatoperatesallmarketing activities of business. Like business isMaxico,NewJersey,Belgium etc. PromotionCadbury is promoting their products as sweets in many countries like India because people of this nation have sweet tooth. Various promotion tools are used by thisfirm.Forexample,social media,magazines,newspaper, radio, billboards, television etc. PeopleCompany pays attention on customers and focuses upon producing higher quality goods so that customer could get better items. Mars is using prominent support of itsworkersforaccomplishingall task and duties in order to capture larger market share in industry. ProcessCompanyisfocusingbothtypeof process of taking orders method that are online and offline.Association is offering various type of deductions in ratesbygivingsomerewardslike mobile data on purchasing collective bars of corporation. This firm is using efficient and less complicatedproceduressothat employeesshouldbeablein accomplishingalldutiesin appropriate manner and this action is helpful in hitting company goals in limited time frame. Physical EvidenceThere are some aspects which a firm use to get recognition in market and thesecomponentsmakeassociation differentfromothersimilarsector corporations. For example, building, stamp,logo,symbol,tag-lineetc. Cadburycompanyisusingthese elements very finely like its symbol is Mars is good in using its physical evidence in most beneficial manner and this is a good reason behind success of firm. 10
quite promising. (Source: Extended Marketing Mix, 2018) TASK 3 P4 Marketing Plan Marketing plan is a written document that is prepared to provide direction to all business operations in order to get completed all task in limited time frame. Creation of this statement is a responsibility of top management personnel because they are responsible for providing directions to all business activities. Main motto of developing this document is to generate a path for conducting all actions and tasks in most appropriate way. There are some components which are helpful in making marketing plan effective and these elements are discussed as follow: Overview of Company:- Cadbury is a second largest company that is dealing its business in confectionery industry. This firm is started by John Cadbury in 1824. They operates across the globe and discovering high margins of profit. Cadbury is quite good in getting competitive advantages not only in home country but in other nation's also. Vision of Cadbury:- This is a main goal that provides direction to all business activities in order to get high profit with greater market share. Vision of company is “Making company brand by serving quality good”. By evaluating current working of company, it is clear that firm is running its way by following vision because corporation is serving quality products to its customers(Pappas, 2017). Mission of organisation:- This is a distribution of vision into short targets and this action is helpful in prioritising all activities so that most important task could get done early and this 11 Illustration3: Extended Marketing Mix
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kind of organisation behaviour is able in assigning all actions to workers according to their liability. SWOT Analysis: This is a tool that is quite able in analysing internal environment of Cadbury firm. StrengthsWeaknesses This firm is having products that collected high reputation in marketplace by becoming well knownamongpopulationbecauseCadbury servedpositiveperceptionintheeyesof consumers(West,2012).Mostconsumed product of Cadbury is Dairy Milk chocolates and reason of this success is efficient research & development program. As company is producing quality products then price of these items are high so more people are not able to purchase products of company. For example, price of dairy milk silk is high which could not be add in budget of lower middle class people. OpportunitiesThreats Customersarebecomingmorehealth consciousnessthenitisanopportunityfor Cadbury company that it can produce those items which could posses less calories so that organisationcouldtakeentryinhealth conscious market segment. There are many companies that are giving cut throatcompetitiontoCadburycompanyby increasingtheirbusinessoperationtowards internationalandmultinationallevel.For example; Mars, Nestle etc. are companies that arehavinggoodmarketshareinmany countries in which Cadbury is dealing their business actions. 12
(Source: TOWS Matrix, 2017) Goals & Objectives of Cadbury Company:- Objectives are other name of goals. In context of company main purpose of firm is to provide quality services to clients and to hit this target corporation is focusing all activities and making them very adequate so that aim of organisation could get achieve(Ryan, 2016). STP This is a strategy that are helpful in popularising brand among customers. In this STP means, segmentation, targeting and positioning of marketplace according to the needs and demands of customers. Following are elaboration of all three components: Segmentation of Market: This would be more understood by one example which is, Cadbury is going to launch its new chocolate which is a health conscious item and named as Dairy Milk Low Fat bar and set price for this item is 100 for 100 gram. To publicise this product company segmented its market into age group and income group wise. Targeting Market:- This is set that price is pointing out high income people then it is decided by company that they will attack need ofhigh income group people so that those people could be target who are having high potential to but this product. Positioning of Product: Person who is having high income then it is clear that they are following very tight schedule and maintenance of health is quite difficult task. Cadbury hit this need and launched a new chocolate named as Dairy Milk Low Fat Bar and positioned this by popularisingthough that a person can have this chocolate at any time as it does not need more and separate time to eat so people can have this to burst their stress and hunger and this would not increase fat. 13 Illustration4: SWOT Analysis, 2017
Marketing Strategy: For gaining all objectives in limited period of time, it is required from corporation that they should formulate adequate marketing strategy so that direction to all activities could be provided. Implementation: In this section, all marketing strategies is to be executed so that all operations could get accomplished in most successful manner. This task is helpful in hitting all targets in limited period of time(Swenson, Rhoads and Whitlark, 2014). Evaluation:It is an examination of all activities and tasks. It includes following methods which are as follows: Sales Analysis:It is a study of sales volume on year on year basis according to variety of products like tablets, mobiles etc. Market-Share Analysis:It is a study of market share whether it is low or high and Cadbury have greater market share in IT industry. Efficiency Ratios: ◦Asset Turnover Ratio =Revenue (Sales)/Net Assets ◦Cost-Profitability Analysis: It considers evaluation of entire profits in respect to cost. It is gap between sales and cost(Urbina, 2014). CONCLUSIONS This report is summarised as marketing function is most important department of company because this segments focuses on bringing efficiency in each activity and efficiency could bring by taking assistance if marketing mix and SWOT analysis. Marketing plan is a written statement that is made by top management to make detail description of every task and responsibilities. 14
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