Marketing Strategies for Penetrating New Markets

The assignment provides an overview of how marketing plays a crucial role in the success of a firm, especially in penetrating new markets. It highlights the significance of understanding market dynamics and developing strategies that can help firms gain competitive advantage. The document also emphasizes the importance of distribution channels and pricing strategies in achieving business goals.

MARKETING ESSENTIALS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Key roles of marketing officers and structure and operation of marketing department.. .1
P2 role of marketing in contributing the wider organisational objectives..............................4
LO2..................................................................................................................................................5
P3 Comparing the way marketing mix is applied in different firm........................................5
LO 3.................................................................................................................................................8
P4 Marketing plan for Your Destination................................................................................8
CONCLUSION..............................................................................................................................11

INTRODUCTION
Marketing in simple term can be describe as process of exchange of value through which
the need and want of an organisation or an individual can be met. Marketing goes much
beyond the simple buying and selling, it helps firm in creating valuable product to satisfy
customer and work to build strong customer relationship so that goals and objectives of
firm can be achieved ((Hays, Page and Buhalis, 2013). Marketing has become one of the
essential function of organisation that help firm in identifying the need of clients so that
they can enhance their services according to their need.
The main function of marketing is to satisfy the need of customer and maintain the
profitability of firm. In current report “Your Destination” have been taken into account, It is a
firm working in private personal hire transportation industry. The company owes its existence for
only three years but can proudly acclaim its name in one of the leading firm in London and
Essex. In recent time company has decided to become nationwide firm with the new branches in
other part of nation. It reports will discuss different role of marketing and its essentials that will
be used by firm in order to penetrate the new market.
LO1
P1 Key roles of marketing officers and structure and operation of marketing department.
Marketing is an essential department of firm. Marketing officer is the person who oversee
this department and is responsible for the marketing campaigns of the entity both internally and
externally along with this he/she is also responsible for creating better communication with
customers so that values and philosophy of firm can reach their customer. Some roles of
marketing officer are mentioned below:
Finances and plan: All the financial issue regarding marketing department are handled by the
marketing officer of Your destination Marketing department work closely with the sales
department of firm as both are responsible for the overall increase in the sale of firm. Marketing
officer arranges meeting with the head of other department so that proper communication can be
maintained (Babin and Zikmund, 2015). They also ensure that both departments are coordinating
well and moving in the same direction for the betterment of organisation. Marketing officer is
also responsible for marketing strategies, they are required to prepare marketing plan which aid
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firm in coming up with good marketing strategy which help in directing the effort in right
direction.
Market research: Marketing officer is responsible to carry out the research through which Your
destination can get better understanding of the perception and demand of customers. Through
proper research manager become aware of various opportunity that emerge in market. This
opportunity help firm in gaining competitive advantage for e.g. Through proper research it came
forward that the rival company has gone through mishaps and are retreating its step-in market.
This create opportunity for firm and marketing manager is responsible to see whether grabbing
this chance will bring success or not.
Market placement and brand image: Marketing presentation help firm in creating a good
image in-front of clients. The officer is responsible to select price and provide quality
product to customer. This all factors are responsible for the making of good image and a
way through which the value and philosophy of firm can be reached out to buyers
(Malhotra, Birks and Wills, 2013) Marketing placement is related to the perception of
people toward buyers by promoting better products and values of company officer help in
moving this market placement which help firm in gaining more profitability.
Structure of marketing department
The organisational structure of marketing department depends upon the size of firm.
“Your Destination” is a small firm which doesn't require much hierarchy to handle the business
of firm but with the expansion plan some more level have been adopted in the organisation
which are mentioned below:
Vice president: Vice president (marketing) at the top of hierarchy, he is the highest authority of
department and all subordinates are required to report to this person. He is responsible for the
plan and strategy regarding the firm and its product.
Marketing manager: He is second in hierarchy and is responsible for the implementation of plan
that vice president has come up with. He is responsible to choose appropriate action
through which the plan can be implemented. He is responsible for marketing message and
choosing a channel through which different function of marketing can be carried out.
(Raffelt, Schmitt and Meyer, 2013).
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Market researcher: Market researcher account for the proper research of market through which
the perception of people can be assessed along with this he is also responsible to identify the
potential threat and strategy of rival firm.
Public relation: This person is responsible for non-paid advertisement of firm. It not only
promotes the products of firm but also help in creating positive image.
Creative services: This are web designer who is responsible for the website of product they make
sure that new product of firm is easily visible on website of firm and is attracting enough to
attract the attention of customers.
Figure 1: Organisational structure of marketing department
(Source: The marketing department. 2015)
Operation of marketing department
Marketing information management: In this relevant data regarding the changing perception
and need of customer are analysed they use different channel such as social media websites etc.
to collect this information.
Distribution: The distribution strategy of firm is also selected by this department, through
proper research they choose a place which can provide firm with great visibility and profitability.
Product and service management: Through proper research they find the perception of people
and provide production team with valuable input through which the product can be improved.
Pricing: Marketing department is also responsible to select a price that not only satisfied the
customer but also bring profitability to firm.
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Promotion: Marketing is responsible to promote the product so that people can become more
aware about the products of company. It is through promotion, that people come to know about
the prices and services that Your destination has offered.
Selling: Marketing and sales department act as a complimentary function by promoting the
product and creating awareness it helps in enhancing the sale of firm.
Financing: Financing is important part of marketing department its responsible to ensure
continuous flow of revenue so that firm can carry out its various activities without any delay.
Marketing environment have major impact on the working of firm. Marketing executives
conduct proper research and come up with better strategy through which company can adapt to
the changing environment.
P2 role of marketing in contributing the wider organisational objectives.
An organisation has various long and short term goal. In order to achieve this goal
various department are required to come together and work in harmony. Marketing department
work with this other department and provide its valuable input so that goal and objectives of firm
can be achieved. The role of marketing department with context of other department is
mentioned below:
Operation department: The research done by marketing department help in bringing
effectiveness and efficiency in operation department. Through proper analysis they understand
the views and perception of customer. This help operation team to come up with a product that
not only satisfy the need of customer but also increase the profitability of firm. It also helps in
reducing the wastage by limiting overproduction (Rust and Huang, 2014)
Sales department: This department is to only department that come in direct contact of customer.
Its responsible to create good relationship with the clients of firm. Marketing department by
analysing the purchasing behaviour of clients can provide sales department with valuable input
that can help them in understanding the need of customer and providing them with better
services. This increase the overall sales of firm and aid them in attaining the complacency of
customer.
Marketing other than its own role and responsibility also help firm in achieving its three
main objectives that is customer satisfaction, quality and profitability. By working closely with
operation team it helps in increasing the quality of products which help firm in reaching its
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objective of quality product. Quality of product is directly linked with the customer satisfaction
and sales. If client is satisfied with the quality of product the profitability of firm will
automatically enhance. Sales also help in meeting those three goals mentioned above.
Interrelationship in firm help in bringing efficiency and effectiveness in firm. By
promoting interrelationship “Your Destination” can have many benefits few of which are
mentioned below:
 Promote healthy environment and create trust among employee.
 Bring efficiency and effectiveness in firm by reducing the overall conflicts.
 Promote good relationship among staff.
The key element of marketing involve proper research and planning, through proper
research about the marketing environment and customer, this department can provide it valuable
insight to other department. This help other department in carrying their roles and responsibility
in more efficient manner. For e.g. organisational department improve their product on the basis
of the information that is provided by marketing department.
LO2
P3 Comparing the way marketing mix is applied in different firm.
Marketing mix is consist of seven such factors that help firm in attracting more customer
and penetrate new market. This seven factor play leading role in influencing the opinion of
customer and compelling them in buying their products. The main aim of Your destination is to
establish themselves as nationwide firm and open new branches in six other cities of nation that
is Manchester, Newcastle, Glasgow and Aberdeen etc. To enter this market and establish them
self as one of the leading firm, Your Destination have adopted marketing mix strategy which will
help them in understanding the market of prepare a strategy that have most potential in getting
success. Marketing mix applied by firm is mentioned below:
Product and services:
Product and services play important role in attracting the customer toward the firm. So its
necessary of Your Destination to understand the need of customer and provide those
services that can help them in grabbing the eye of people in new market (Wirth., Tuzovic
and Kuppelwieser, 2014). The core product of firm is to provide transport services to
their customer but in order to enter new market and find stability their it has also decided
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to use the strategy of generic product that provide customer with additional benefits along
with core services. It’s also necessary of firm to understand the demand and need of
market and provide service according to that demand.
Promotion:
Promotions are used by firm in order to create awareness of product or services among
the people. It helps in enhancing the brand image of firm and set them apart from their rival and
counterparts. Promotion has become a key to survive in this competitive environment. A good
promotional scheme provide firm with an advantage. There are many ways through which firm
can promote its services such as advertisement social media, campaigning etc.
Pricing: The success of firm depends upon the price that is selected by firm. It is difficult to
select appropriate price of services in comparison of products. It’s necessary for Your destination
to come up with a price that can satisfy the customer also brought profit toward the firm. Since
the firm is entering a total new market it has decided to put low prices so that it can attract the
customers.
People:
People are another important part of firm. It include both customer as well as employee.
Your destination makes sure that their customers are comfortable and satisfied with the services
provided to them. In regard to above sentences the firm ensure that good training is provided to
their employee so that they can become competent enough to provide the best service to their
customer.
Process:
Process is an important part this determine how customer get and use the services
provided to them. The simple and efficient process help firm in attaining the satisfaction
of firm. The customers appreciate those services which don't require much of hassle. To
make the whole process more easy the firm has adopted online method which provide
their customer a advantage of hiring their services from any place all around the world
(Armstrong and et. al., 2015).
Place:
Place or distribution as discussed above play major role in increasing the visibility of firm
and reaching the people at much wider level. Having a store at good placement can help firm in
attracting more customers. It will be in the benefit of firm if it could find good place to open their
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new branch so that many people can come to know about it. A good place can be determine on
the basis of geographical location, physical condition and the target market it can attract. Your
destination need to keep this thing in mind before choosing a location and opening a store.
Physical evidence:
The ambiences that differentiate one firm from another firm are known as physical
evidence. The tag line that company use along with the message and values of firm play major
role in building the perception of entity in the mind of customer. A good tag line that shows the
belief and value of firm will help them in attracting the attention of customers.
National express is one of the leading firm in private hire transport business, in order to
overcome their biggest rival its necessary to understand the marketing strategy of it.
 Products: The firm has already established itself as one of the leading firm in nation.
Instead of adding extra feature in their services the firm is concentrating on maintaining
the quality of services.
 Promotion: Company is already working as the leading t\firm in transport company so
instead of investing much money on the promotion the firm is focusing more on their
other business operation.
 People: The firm give special attention its employee and provide them with regular
training so that they can work efficiently.
 Process: The firm has decided to invest on the latest technology so that they can make
process much smoother for their employee (Huang and Sarigöllü, 2014)
 Place: the firm pay extra attention on their distribution channel and has opened their
various branches in the heart of city so that it can attract more people.
 Physical evidence: The firm focuses on the comfort and trust which is conveyed through
their tag line and messages that are passed to their customer this catches the eye of people
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Figure 2:7P's of marketing mix
(Source: Marketing instruments. 2016.)
.
LO 3
P4 Marketing plan for Your Destination
Marketing act as a communicator between the firm and consumer. It communicates
important detail of firm toward their consumers and help firm in attracting potential customers.
Current market analyse
Internal analyse
SWOT analyse is used by firm to identify the internal factor that has it impacts on the working of
firm. SWOT analysis not only in identifying the strength and weaknesses of firm but also make
them aware of leading opportunities and threat that can help firm in its further development. The
Swot analysis of Your destination is mentioned below
Strength
 Variation in services
 strong brand value
Weaknesses
 Rigid structure
 work ethics
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 Customer satisfaction
 Minimum start-up cost.
 Financial condition is strong.
 No experience in working in big firm.
Opportunities
 Strong market position
 Implementation of digital technology
Threats
 Strong competition from existing brand
 Recession in country
 rising cost
External analysis
To identify the external factors that can have adverse effect on the growth of firm has
been analysed using PEST analysis.
Political: Political framework play important role on the working of firm. Before entering new
market its necessary of firm to understand all its legal structure so that they don't have to go
through any hassle. This all city have their own set of rules and Your destination is required
adhering this rule so that it can work efficiently.
Economic: Economy of country is also important. The economic factor include things like
inflammation, recession, unemployment etc. Manchester and Newcastle have strong economy
that will help firm in its development.
Social: Social changes can also have its impact on the way a firm operate its business.
Understanding the values of locals and adapting them in working help firm in gaining
competitive advantage.
Technology: Technology has become integral part of today world. Every firm is adopting this
changes in their working. Your destination also need to adapt this technology in their working
style this will give the firm an edge over their competitors.
Boston matrix
Boston matrix is a model that help firm in identifying its market share, it measure the
marketing growth of firm and try to evaluate markets attractiveness. It also helps in assessing the
value of product and its ability to generate cash. It focuses on market growth and market share of
firm. This model can be quite useful for firm in analysing their current product portfolio and find
their start product which has market growth and market share (Leonidou, Katsikeas and Morgan,
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2013). By understanding this firm can promote their star product in new market can enhance
their remaining product so that it can also bring profitability to firm.
Objectives:
After identifying the potential strength and threat, the firm come up with objectives and
work towards them. The current objective of Your destination is to establish their business
nationwide in 6 other cities of Australia. The other aim of firm is to enhance their customer base
along with profitability while maintaining equality of services they provide.
Segmentation, targeting and Positioning
The next step of plan includes the selection of target market and good segmentation
criteria. With increasing challenge in the transportation industry its necessary of firm to
select correct target that can bring benefits to firm (Wirth., Tuzovic and Kuppelwieser,
2014). The organisation can target professional people who have to travel long distance
because of their work. This will help firm in manuvering their services in such a way that
they can attract targeted market.
Tactics and action
Social media marketing
Social media has become important part of today’s lifestyle. The firm can use social
media app such as face book, twitter snap chat etc. In order to promote their services and reach
much wider level of audience
Budgets
Budget play important role in the whole planning, budget of each activity is
determined by firm. The budget for different activity such as market research, promotion etc. is
determine by consulting the finance department than only the plan are implemented.
Promotional activity
To enter in new market and promote their brand, Your destination has come with
many offer that can catch the eyeball of many people. The offers that firm has come up with
include first 100 km free, in this the firm provide free 100 K.M. to their first customer. Other
than this to attract student it has offer special ticket to one of the museum for the top five lucky
winners. This all promotion activity will assist firm in digging their heels in new market.
Conclusion and recommendation
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From the above it can be concluded that in order to penetrate new market and establish
their business firm can use pricing strategy and better distribution channel. Firm should pay
special attention to the market of new , market so that they can develop and work accordingly.
CONCLUSION
From above report it can be concluded marketing play important role in the success of
firm. It has its own role and responsibility through which it contributes in the various operation
of firm and assists them in achieving their goals and objectives. Marketing mix is one of the
important strategy that help firm in understanding the market and come up with potential
strategies that can help firm in the penetration of this new market. A proper development plan is
also made which can help firm in gaining the competitive advantage.
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REFERENCES
Books and Journals
Armstrong, G. And et. al., 2015. Marketing: an introduction. Pearson Education.
Babin, B. J. and Zikmund, W. G., 2015. Essentials of marketing research. Nelson Education.
Hays, S., Page, S. J. and Buhalis, D., 2013. Social media as a destination marketing tool: its use
by national tourism organisations. Current issues in Tourism. 16(3). pp.211-239.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132).
Springer New York.
Leonidou, C. N., Katsikeas, C. S. and Morgan, N. A., 2013. “Greening” the marketing mix: do
firms do it and does it pay off?. Journal of the Academy of Marketing Science. 41(2). pp.151-
170.
Malhotra, N. K., Birks, D. F. and Wills, P., 2013. Essentials of marketing research. Pearson.
Raffelt, U., Schmitt, B. and Meyer, A., 2013. Marketing function and form: How functionalist
and experiential architectures affect corporate brand personality. International Journal of
Research in Marketing. 30(3). pp.201-210.
Rust, R. T. and Huang, M. H. eds., 2014. Handbook of service marketing research. Edward
Elgar Publishing.
Wirtz, J., Tuzovic, S. and G. Kuppelwieser, V., 2014. The role of marketing in today's
enterprises. Journal of Service Management, 25(2), pp.171-194.
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Marketing instrument. 2016. [Online] Available Through:
<https://marketing-insider.eu/marketing-instruments/>.
Samuel Scott. 2015. The marketing department. . [Online] Available Through:
<https://marketing-insider.eu/marketing-instruments/>.
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