Marketing Mix Strategies and Competitive Advantage

This assignment delves into the concept of the marketing mix and its influence on a company's competitive advantage. It examines how different elements of the marketing mix, such as product, price, promotion, and place, can be strategically leveraged to gain an edge over competitors. The assignment analyzes various examples from diverse industries, including hospitality, pharmacy management, and entrepreneurial ventures. It also touches upon contemporary trends like digital marketing and big data analytics in shaping modern marketing strategies.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Roles and responsibilities of marketing function.............................................................1
M1. Duties of marketing with respect to marketing environment..........................................3
P2 Relation of roles and responsibilities with wider context of organisation........................4
M2 Significance of inter-relationship between marketing and other functional unit ............6
D1 Critically evaluate the key element of marketing function ..............................................6
TASK 2............................................................................................................................................6
P3 Comparison of marketing mix applied by different companies........................................6
M3 Evaluate different tactics chosen by ALDI to achieve business objective......................9
TASK 3..........................................................................................................................................10
P4 Marketing plan for ALDI................................................................................................10
M4 Produce detailed marketing plan for ALDI ..................................................................12
D2 Design marketing plan with the use of 7Ps ...................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
.......................................................................................................................................................16

INTRODUCTION
Marketing is an essential and main process by which businesses generate value for
audience and build long lasting or strong relationship with them. It is the basic action, set of
institutions and procedures for developing, transmitting, exchanging and delivering offerings that
have more value for clients. Marketing is pricing, naming, branding and the connection between
earned and paid media. It is essential for company because with the help of this, they can easily
meet wants and needs of customers (Akgün, Keskin and Ayar, 2014). It includes communication,
targeting, researching direct mail, advertising and usually public relation. Chosen organisation is
ALDI which is a retail industry that was found by Karl and Theo Albrecht on 23rd June 1913 at
Essen, Germany. This report shown about the responsibilities of marketing functions and inter-
relationship with the context of organisational department. Marketing mix of two businesses in
same industry is also shown in this project. Basic marketing plan of McDonald's is discussed
here as well.
TASK 1
P1. Roles and responsibilities of marketing function
Marketing: It is the management and report of exchange relationship in order to create,
satisfy and maintain long lasting connection with them. It is one of the important tools which is
used by all businesses to introduce their products to customers.
Concept of marketing: It refers to an effective activity by which a company generates
value for clients and make strong connection with them. In addition, marketing bring goods to
the marketplace with a motive of fulfilling wants and requirements of audience effectively
(Armstrong and et. al., 2015). There are different concepts of marketing which are given as
below:
Production concepts: It is identify as an effective plan that customers will favour goods
that are achievable or highly affordable. It is apply by the ALDI to innovate their all products in
marketplace.
Product concept: It is also define the idea that buyers will esteem goods that offer the
most features, performance, quality and that the enterprise should therefore devote its force to
developing regulars products improvements.
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Selling concept: It is also an important part which is used by company in order to sell
their products in marketplace. In this process, business applied different kinds of promotional
mix effectively.
Societal marketing: It is another important concept of marketing which is valuable for
them to identify needs of clients (Babin and Zikmund, 2015). In this way, company's marketing
decision is highly important, judgement regarding customer’s needs, businesses requirements,
client’s long term interest and many other.
Different functions of marketing: There are various marketing functions which are required by
each and every business in order to accomplish their long term goals. In this, roles and duties of
such aspect is to attract a large number of customers (7 Functions of Marketing, 2018). Some
functions of marketing are determined as below:
Illustration 1: Functions of Marketing
(Source: Different types of Marketing Functions, 2018)
Marketing Information System: It is the main function of marketing which assists
businesses to identify basic needs and wants on clients. In the competitive place, requirement of
clients are often changing that highly affect company’s performance and profitability. In this,
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ALDI needs to know customer’s tastes so that they can modify their goods and services as per
their wants. MIS is an effective system that collects and distributes data related with distinct likes
to customers. With the use of this function, company identifies competitor’s product’s price so
that they can fix their product charges according to that.
Product and service management: It is another important function of marketing which is
used by each and every business to manage all resources of products systematically. Company
provides all their goods at discounted pricing strategy (Baker and Saren, 2016). It is valuable for
them to invite different number of clients towards innovative and available products. In other
words, their free home delivery and attractive store layout helps in handling their services and
goods in a thorough way.
Financing: It is another valuable function which is important for company to manage all
their financial resources in a planned manner. ALDI applies various funding resources such as
Equity, Loan, Angel Investor and many others. Duty of such aspect is to arrange sufficient fund
or capital in order to launch day to day activities effectively.
Promotion: It is an important function of marketing which is used by each and every
enterprise to advertise their innovative goods in marketplace. In this, company uses different
tools such as mass and print media, internet and many others to make customers aware about
business products. Main role of this concept is to easily provide information or products to the
customers.
Marketing planning: It is a part of marketing function which is essential for the manager
of ALDI to plan an effective policy and strategy with an aim of maintaining long-lasting
relationship with customers (Boehner and Gold, 2015). Marketing plan is significant to identify
the trends of market and needs of clients in limited time period.
Pricing: It is one of the main and vital parts of organisation and its marketing manager in
order to fix accurate price of their products as per the demand of market and needs of clients.
Products of ALDI at very low cost as compared to its challengers. They use various kinds of
pricing schemes such as unit price, market penetration, competitive, psychological and loss
leader pricing.
M1. Duties of marketing with respect to marketing environment
Marketing management is identified as an effective process of designing, planning and
implementation of marketing concepts. It covers certain aspects such as sales, promotion,
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pricing, etc. which enhances number of customers in organisation. The duties of marketing in
context of its environment can be determined as below:
Marketing research: It is the major and valuable duty of marketing. In this, manager
conducts a research with an aim of increasing the basic knowledge of price, products and clients
in order to provide quality and one of the best services and goods in marketplace.
Market segmentation: In the competitive era, market is volatile or uncomfortable and
thus, ALDI needs proper classification which is given by marketing (Brassington and Pettitt,
2013). It assists the manager to identify clients’ needs and advertise all their goods among them.
Brand Equity: It is identify as the part of company goodwill and image in marketplace as
well as in the mind of customer's. Therefore, marketing gives better reputation and makes strong
relation among the audience. It will help company to increase their sales and revenue in given
time period.
P2 Relation of roles and responsibilities with wider context of organisation
In the each and every organisation, there are different departments which are play vital
role in the way of achieving long term goals. On the other side, functions of marketing is also
valuable for the enterprise to innovate their all goods in marketplace. Both marketing functions
and various departments of organisation are inter-linked with each other. Thus, without
marketing, each department can not attain maximum benefits and not maintain long lasting
relationship with audience. There are several departments which are work in ALDI can be
determined as below:
Inter-link with human resource department and marketing function of ALDI: Role of
HRD in the every organisation is to recruit talented person who can easily increase sales figures
of the company. In order to hire knowledgeable candidates, company apply various tools of
marketing such as promotion, transportation, advertisement and many other to invite pool of
candidates (Carins and Rundle-Thiele, 2014). Company use an effective and proper techniques to
advertise their vacant post systematically. So it can prove that without marketing function,
human resource department can not attract large number of the person for the specific job
position.
Interconnection with Information Technology department and marketing function: IT
is main sector of the business growth and success. In order to increase their position in
competitive marketplace, company use different kind of innovative technology. For example:
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ALDI operates their new mobile application which reduce the energy and time of business as
well as clients. On the other side, Functions of marketing is important part for the IT manager to
apply advanced system in link with to easily attract maximum number of clients towards the
business services and goods.
Connection with sales department and marketing function of company: Role of sales
department is to sale their all products and services in the market at affordable cost. In order to
aware customer about innovative products and facilities, such manager use different kind of
promotional mix which is a part of marketing (Chaffey and Ellis-Chadwick, 2016). These tools
includes such as advertisement, public relation, sponsorship, direct sale and many other aspects
to alert clients about them. Thus, marketing and sales department are connected with together so
they can reduce the gap between end consumer and audience.
Inter-link with operational department and marketing function of firm: Operational
department is major division of the organisation. Entire success and development of the
enterprise is highly depend on such sector. In this need of this department is to identify basic
wants and requirement of clients which is done with the help of marketing function. Thus, both
operational and marketing manager are important for the company to accomplish their long term
and predetermined objectives in easy way. Without marketing, operational department can not
gather all information or data due to the market trends and choice of the buyers.
Connection with Research & development department and marketing function of
enterprise: R&D is a main department in the organisation which play vital role in organising
effective research. During this process, manager of such sector asked different questions to the
customers about taste and quality of products (Charter, 2017). After completing investigation,
company understand regarding the clients choice so that they can chance their product taste and
quality as per the needs of customers and demands of the market. On the other side, functions of
marketing help the R&D manager to use different kind of research such as primary and
secondary. Both types are valuable and beneficial for the ALDI to increase their position in
marketplace and in the mind of customer's in an effective and efficient manner.
Inter-link with production department and marketing function: Main role of the
production department is to maintain all resources in a systematic and effective way. In the
company they play vital role in identifying the different resources of production. On the other
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side functions of marketing help business entity to use various kind of tools with aim of
producing all goods and services to the end user in a systematic and effective way.
M2 Significance of inter-relationship between marketing and other functional unit
ALDI has different department such as Human resource, Research & Development,
Informational Technological, Operational and sales department. All division are play important
and main role in the success and development of business growth. In order to achieve long term
goals and objectives in limited time period, functions of marketing are highly required
(Chumaidiyah, 2014). Thus marketing functions and other functional unit of the organisation are
important for the company. Better relation assist the manager of ALDI yo increase their sales
and maintain long-lasting relationship with customers.
D1 Critically evaluate the key element of marketing function
Key elements of marketing functions: According to the ....There are mainly four types of
key elements which are applied by the ALDI in their business operations and functions. All these
are determined as below:
Research: It is identify as a part of marketing which is important for the each and every
enterprise in order to conduct investigate all needs and wants of the customers about business
services and goods. This element assist the manager in acquiring valuable data about whole
factors in regards to business activities.
Strategy: In this business entity make an effective idea to implement strategy and policy.
It give accurate direction for the organisation to deliver the goods in the market environment
(Davari and Strutton, 2014).
Planing: In this marketing department of the enterprise is involves distribution of
communication channels, forecasting of sales and financial planning of company.
Tactics: It is basic and last role of marketing which is essential for them to achieve long
term goals. In this function, ALDI provides different facilities to the customers such as buy one
get one free, discounts and many other offers.
TASK 2
P3 Comparison of marketing mix applied by different companies
Marketing mix: It is best part of the company to promoter their products and services in
marketplace (Marketing Mix, 2018). It is refers to the tactics and set of actions, that an
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organisation apply to advertise its brand to the customer's and in market. It is used in the process
of marketing planning in order to accomplish business objectives and targets. This is best
techniques which assist marketers to know the product. It consider 7P's such as physical
Evidence, people, place, promotion, price, process and product.
Selected business are ALDI and LIDL, both business are apply 7P's of marketing in
regards to promote their services and commodities in market (Desai, 2013). It is essential for the
growth of brand in the competitive place. Elements of marketing mix are not same for the each
and every business so it is differentiated which are described as below:
Marketing Mix ALDI LIDL
Product Company give affordable and
quality products to the
customers at reasonable price.
Business stock their fresh
vegetables and fruits, beauty
and health, electronic, clothes,
soft tools, household and
stationery goods.
Company offers fresh
vegetable & fruit, fish, meat,
frozen food, bakery, beauty,
health, cleaning, pet food,
household and baby food to the
customers at reasonable price.
For example: In the United
Kingdom, approx 75% of
business goods are supplied by
British producers and farmers.
Price In the marketplace, they has
better customer base through
the quality and cheap price.
ALDI use different kind of
pricing policies such as; Unit
pricing, Market penetration,
Competitive, loss leader,
Psychological and others. All
these are highly support the
company to attract large
number of customers pool
LIDL use penetration pricing
strategy which is beneficial for
them to attract different
number of the customers
(Desselle, Zgarrick and Alston,
2016). In the company there
are various kind of goods
which are different as per the
pricing strategy. By supplying
private-label goods, business
destroy the middlemen that
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towards quality products and
effective services.
outputs in cost-saving.
Place In 18 countries, company has
more than 8000 outlets.
Company produce their all
products and services in bulk
from different stores and
suppliers then at national
warehouses (Dibb and Simkin,
2013). Organisations tries to
retain a regional occurrence
and hence names its shops as
per that, like in Switzerland it
is called as ALDI Suisse.
Place frequently refers to the
channels of distribution.
Company has grate amount of
regional system areas to
provide quality in all over the
globe. In the United Kingdom,
they has 650 stores over
10,000 shops across Europe.
Promotion It is one of the major element
of marketing mix which is
essential for the organisation
to advertise their all innovative
products and creative services
in marketplace. In the
Australian, US and UK
markets company creates
extensive use of electronic,
display media and print to
advertise its stores. They also
apply E-mail marketing where
business informs whole its
clients regarding new products
and Special buys.
In order to promote their all
goods and service in
marketplace, LIDL create their
new own app for Android and
iPhone to assist buyers explore
entire upcoming and current
offers. They also apply public
relation which is essential for
them to increase customer base
(Erragcha and Romdhane,
2014). For example: Lidl has
Weekly facility with which
clients can save up to 26% on
chosen items.
People They has minimum customer In the company, there are
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facility than its challengers as
workers do not help clients in
good selection. This is possible
because business has very
consciously put outlet where
all things is classified into
appropriate parts which
decrease the number of
workers required on each and
every floor.
different number of employees
are work with each other to
attain large number of the
benefits in limited time period.
In order to maximise basic
skills and knowledge of the
employees, company provide
basic training and development
to them. So that they can easily
deal with customers.
Process ALDI maintain high quality of
product, minimal priced
product to prevent clients from
decrease the selection time. In
other words, business goods
have maximum barcodes for
speedy determination of the
needs and requirement of
company.
First process of the company is
to sell and buy as many
products as possible on cheap
price. It is important for the
enterprise to used effective
process to produce their all
products and services to end
user in a systematic manner.
Physical Evidence It is identify as an effective
activity which is essential for
the organisation to maintain
their product quality in
globally. In its stores approx
85% stock of home brand and
rest are recognised products.
It is mainly based on
Environment, colour, layout,
furnishing, facilitating goods,
tangible clues and noise level.
In this majority of business
shops are expend in a
traditional and liner way.
M3 Evaluate different tactics chosen by ALDI to achieve business objective
One of the main and foremost tactics used by the ALDI is 7P's of marketing mix. It is
beneficial for the business to innovate their all commodity in marketplace (Fan, Lau and Zhao,
2015). In this seven elements such as product, price, place, people, physical evidence, process
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and promotion are play vital role for alerting the clients about business brand or quality products.
With the use of this technique, an organisation easily invite pool of customers which tern in the
success and growth of enterprise.
TASK 3
P4 Marketing plan for ALDI
Marketing Plan: It is a written and comprehensive document that outlines entire
activities and functions of company. It is main and essential plan for the each and every business
to define their all information in the marketplace and to the customers in limited time period
(Hauer, 2011). This plan consists several contain such as background, mission, objectives,
vision, SWOT analysis, STP, Budget, Competitors and many other parts. All these are described
as below:
Overview of the ALDI:
This business is super market chain in all over the world. In 20 countries, company has
10,000 stores which is valuable for them to attain long term goals. It was established by the Theo
and Karl Albrecht in 23 June 1913 at Essen, Muheim, Germany. They produce different types of
products such as Food , Beverage, House hold, Sanitary Articles and many others to the
customers at affordable price. In 2015, there are approx 104,400 employees are work with the
aim of attracting large number of the customer's.
Mission and Vision Statement:
“Mission of the ALDI is to creating or developing value for clients, to gain their long
time loyalty”.
“Vision of the ALDI is to producing quality products and services to the clients at
cheaper rate”.
SMART objective: This objectives state that specific, measurable, achievable, realistic and
targets which are determined in a systematic manner (Jones and Rowley, 2011). These are:
 Amount of the product sales is achievable for the company.
 In this business entity measure their all performance and profitability in limited time
duration.
 Expect growth of the company by 5% is achievable.
 In order to produce quality products in all over the world, it is realistic.
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 All process and goals of the company are time bounded.
STP Approach:
Segmentation Large number of the person seeing out to buy
grocery at cheaper and competitive prices.
Targeting They mainly targeted Households as well as
middle, upper and lower class people.
Positioning They produce their products and services in all
over the world. They having strongly located
in Germany.
SWOT Analysis: It is one of the essential factors which are define strength, weaknesses, threats
and opportunities of the company. These are determined as below:
Strength Weaknesses
 Claims to produce upper class and top
quality of products.
 Price of the product is affordable for
the customers.
 In Europe and many other countries
they has approx 8000 stores.
 Lack of promotion and publicity
 limited number of products
 Global presence is very poor in
international market.
Threats Opportunities
 Private label image of business can be
throw away by well-known brands.
 Other retailers or suppliers who have
different SKUs.
 Require to invest maximum in
advertising or promotion to beat
competition.
 Enlarging into growing economies
areas like Asia, Africa etc.
Competitor Analysis: There are different competitors of the ALDI is TESCO, LIDL and many
other provides same products to the customers (Khan, 2014). In this business should try to set
their product price reasonable as compared to their competitors.
Marketing Budget:
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Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 3000 5000 9000 9000 12000
Investment of
finance 11000 20000 30000 12000
Net Total 3000 16000 29000 39000 24000
Outlay of marketing
Promotion and
publicity 7000 1000 3000 3000 2500
Advertisement 2000 4000 2500 2000 3500
Direct selling 6000 2000 2000 3000 3000
Grand Total 18000 7000 7500 8000 9000
Monitoring and Controlling: Marketing plan is very important for the organisation to
accomplish their long term goals and objectives (Kotler, 2015). In this role and responsibility of
the manager is to analysis all resources and activities whether business operations are organised
effectively. In this they also evaluate all difficulties and errors in a systematic manner. So in
order to control and monitor entire activities effectively business use various kind of tools and
techniques essentially.
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M4 Produce detailed marketing plan for ALDI
Marketing plan of the company determined entire information of them such as
background, vision, mission, objectives, SWOT analysis, Segmentation, targeting, positioning,
budget and main strategy (Kraus and et. al., 2016). All these are main and foremost aspect that
define business position in marketplace. It is a simple process which is follows by the each and
every enterprise in order to achieve their long term goals and targets in limited time period.
D2 Design marketing plan with the use of 7Ps
7P's ALDI
Product Company produce different products such as
fresh vegetable & fruits, beauty and health and
many other goods to the customers.
Price It is main aspect of the all business. In this
company set their product price as per the
demand of market and needs of customers.
ALDI use different pricing strategies such as
Unit pricing, Market penetration, Competitive,
loss leader, Psychological and others
Place In all over the world, firm has different stores.
They produce their all products and services in
worldwide.
Promotion In order to promote their products, business
use their own sites, print and mass media.
Process In this way, an organisation use an effective
process to produce their goods to the end user
in systematic manner.
Physical Evidence It is one of the main element which is
beneficial for the enterprise to maintain long-
lasting relationship with customers.
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CONCLUSION
As per the above mentioned report, it can be summarised that marketing is beneficial
concepts for the all enterprise. With the use of this aspects each and every business easily
advertise their all goods and services to the customer's and in the market. Roles and duties of
marketing function are beneficial for the all department of organisation because all success of the
business is mainly depends on them. In order to promote or advertise all goods and facilities in
market, business entity select 7P's of marketing. It is one of the main and foremost aspect for all
enterprise to easily accomplish their long term targets. Marketing plan is also valuable and useful
for the firm to introduce their all information to the customers and in the market. So in this
clients are already understand about the image and goodwill of company.
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