Marketing Mix for Consumer & Business Segments

This assignment focuses on analyzing various aspects of marketing strategy. It explores different marketing mixes tailored for distinct consumer segments, highlighting the unique approaches required to target businesses versus individual users. Furthermore, it delves into the complexities of global marketing compared to domestic marketing, emphasizing the specific challenges and considerations involved.

MARKETING
PRINCIPLES

Table of Contents
TASK 1............................................................................................................................................1
1.1 Different elements of the marketing process.......................................................................1
1.2 Profits and costs of a marketing orientation for Appy.........................................................2
TASK 2............................................................................................................................................3
2.1 Macro and micro environmental factors which impact marketing decisions........................3
2.2 Partitioning criteria to be used for products in various markets...........................................4
2.3 Targeting strategy for a selected product/service..................................................................5
2.4 Buyer behavior affecting marketing activities in various buying situations.........................6
2.5 New positioning for a selected product/service....................................................................7
TASK 3............................................................................................................................................7
3.1 How products are improved to gain competitive advantage.................................................7
3.2 How distribution will be organized to provide customer comfort........................................8
3.3 How costs are set for new product to show objectives of Appy...........................................9
3.4 How promotional activity is integrated to attain marketing objectives..............................10
3.5 Additional elements of the extended marketing mix..........................................................10
TASK 4..........................................................................................................................................11
4.1 Marketing mixes for two different segments in consumer markets....................................11
4.3 How and why global marketing differs from domestic marketing....................................11
REFERENCE.................................................................................................................................12

TASK 1
1.1 Different elements of the marketing process
Marketing is the process of creating value to the customers. It inclusive of analyzing
market opportunities, selecting target audience, developing the marketing mix and managing
marketing functions systematically (Kotler and Armstrong, 2012). In the case study of “Appy
Foods and Drinks”, CEO decided to initiate his idea of expansion the product range to ethical
foods, which is preferred by millennial generation. The following elements of the marketing
process (Kotler and Keller, 2006) are explained through this case study.
 Understand the market place and customer needs and wants : As an initial step of the
marketing process, it is needed to analyze the industry and environment of the
organization, within which it operates, to gather customer information as well as the
competitors. According to the, Appy Foods and Drinks they should analyze their
customers’ preferences in the fast moving consumer goods industry. Though the CEO
understands the millennial generation is concerned on ethical foods, but it is not
enough to expand their natural products to cater them. They should analyze their
internal environment as well as external environment to analyze the company’s
capabilities, external threats and opportunities by using SWOT, PESTEL, Porter’s
five forces model, etc.
 Design a customer driven market strategy : Under this element, the marketers should
identify the target market, that is the audience to whom the products are focused.
Appy Foods and Drinks currently supplies the products to kids and families. But the
new range of ethical foods is designed to cater the needs of Millennial Generation.
 Construct an integrated marketing programme that delivers superior value : Here the
important element is marketing objective. It can be designed in accordance with the
mission of the company and should closely associated with the business strategy.
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 Hence, Appy Foods and Drinks should design the marketing objective within the
framework of become no.1 in healthier and ethical choice to cater millennial
generation. Because their new product are designed to cater the millennial generation,
since it should be specified in this marketing plan (for ethical foods).
 Dealing with marketing mix : Here it is important to consider the elements of
marketing mix, that is of 4ps (price, product, promotion and place). This should be
attractive to the customers which enable to compete in the industry. Appy Foods and
Drinks, has already decided the product as ethical foods but should be more specified
as drinks or foods. Price should be reasonable, and promotion should be attractive to
the millennial generation. Hence, electronic devices can be used as the mode of
promotion. Place should be superstores and well-being stores which attract millennial
generation.
 Measure, control and revising the marketing strategy : To maintain the effectiveness
of marketing strategy it should be assessed annually, at least, and accordingly the
existing strategy can be altered. This company should also review their strategies to
attract more customers and to be a dominant firm in the industry.
1.2 Profits and costs of a marketing orientation for Appy
Market orientation is vital in this competitive environment, which prioritizes the
customers’ satisfactions in the marketing process (Lambin, 2008).. The product extension
marketing plan of Appy Foods and Drinks, it is important to evaluate the benefits and costs of a
marketing orientation.
 Benefits: when extending the product range Appy Foods and Drinks should closely
associated with the target customer of millennial generation to get to know the type,
quality and price of the product to be decided. Under this, company can collect
information on the demand for ethical products from millennial generation. This will help
in anticipating and developing the ethical products to which they prefer most. Most
importantly market orientation will help to build the long-term customer relationship
which enhances the customer loyalty and brand value.
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 Costs: it arises with significant cost. Mainly it involves with the marketing research to
gather information on customer, which arises high cost. Cost of customer survey, and
hiring employees for selling and marketing new product. Sometimes, if Appy Foods and
Drinks holds customer surveys, they might not get proper information, since the
millennial generation is differed in choices. Hence the cost of deficiencies may raised.
After analyzing these costs and benefits, Appy Foods and Drinks should understand the
market orientation is important if and only the benefit of it exceeds the cost of it.
TASK 2
2.1 Macro and micro environmental factors which impact marketing decisions
These are the factors and forces that affect the marketing management’s decisions in
developing and maintaining marketing plan with targeted customers (Kotler and Armstrong,
2012). These are opportunities and threats raised from the outside of the organization.
Micro environmental factors are the forces within the organization that affect the ability to serve
its customers (Kotler and Armstrong, 2012). These factors are competitors, employees,
shareholders, customers, suppliers, public which determine the resources and capabilities of
Appy Foods and Drinks in the extension of product line.
 Customers : are the key stakeholder groups of any organization on whom which sustains in
the market. Appy Foods and Drinks focuses on the Millennial Generation to introduce
ethical foods (natural drinks and organic foods) , which is proven by the boston group in
USA (Howe, 2015).
 Employees : of Appy Foods are capable of introducing this ethical food range to the
Millennial Generation. Because they are currently producing healthy foods and drinks for
children and families.
 Suppliers: If the Appy Foods has good supply chain from getting organic foods to process
into foods and drinks, then they will be able to gain competitive advantage and provide
quality goods to Millennial Generation.
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 Shareholders: there is a good relationship between CEO and the managers of Appy
foods which assure sustainability and higher profits.
 Media: this is a crucial role in promoting new product to the customer. Appy Foods
should use modern technological devices to approach Millenial Generation who get
product information via smart phone or portable devices (Howe, 2015).
 Competitors: Appy Foods should aware of the rival products. Their rivals are Coppella,
3G cereal bar, etc.
Macro environmental factors are the societal forces that affect the microenvironment
(Kotler and Armstrong, 2012). These are not closely related to the organization, but has a
long impact on the organizational activities. They are demographic, economic, political,
technological, cultural and natural factors:
 Demographic Factors are customer’s age, density, location, occupation, race and religion
which impact on customers’ buying decisions. Appy Foods has focused on kids and
families. But with the new product line they target on Millennial Generation, in UK.
 Customers’ purchasing decisions depend on the Economic factors specially the inflation
rate.
 Natural Factors such as availability of organic foods, cultivation, availability of farms,
environmental pollutions, and government interventions have a strong impact on the appy
Foods.
 Appy Foods is affected by technological factors especially in the formation of ethical
products. Since it focuses on Millennial Generation, company should approach then
through technological devices like smart phones.
 Appy Foods new marketing strategy is affected by Cultural factors of Millennial
Generations’ preferences and trend towards green and ethical foods and drinks. Further
they are willing to pay higher price for eco or socially concerned brand like Nike,
Addidas.
2.2 Partitioning criteria to be used for products in various markets
Segmentation is important for launching new product to the customers whose needs and
wants are differed. To cater the needs of each of the customer group, segmentation helps the
marketer to divide them according to their demand, preferences, culture etc and to offer product
accordingly (Kotler and Gary, 2004). Basically this can be divided into following divisions:
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geographic, demographic, psychographic and behavioral (William and Curtis, 2008). Appy
Foods has the wide range of products with low calories, low in sugar and free from artificial, to
offer children and families. Now it plans to widen their target group to Millennial Generation by
offering ethical foods like organic foods and with green label. In order to propose a market
segmentation for this product, following factors are to be evaluated.
 Geographic Factors : Appy foods can divide the market on basis of population, size,
regions or geographical area.
 Demographic Factor : Accordingly, the market can be segmented based on the race,
religion, age, status, education and income of the people.
 Psychographic Factor : Appy foods can consider the customer’s thoughts, attitudes,
feelings, beliefs, interest, values and lifestyles, social status and maturity level.
 Behavioural Factors : These factors of customer’s purchasing behavior, loyalty to the
brand and organization, brand orientation can be considered in segmentation.
After reviewing all the above criteria, Marketing Manager can propose Appys Foods and
drinks Markets to be segmented as follows:
 Organic foods for Children, Families (prevailing segmentation)
 Ethical Foods for wealthy people and Corporate Executives (new product segmentation)
 Ethical Foods and Drinks/organic products for young millennials (Natural Juices to boos
up their energy) / new product segmentation
 Vegan Ethical foods (depend on the religion or race)
2.3 Targeting strategy for a selected product/service
To select a target strategy for ethical foods at Appy Foods and Drinks, following factors
are considerd. According to the Kotler and Keller (2009) when evaluating market segments,
segment size and growth are to be assessed. In the company market segment is ethical foods for
Millennial and which has less number of competitors. Company’s objective is “to become no.1
healthier for families in UK”. Since they have entered into the market in 2013, still it is a new
company to the market of organic and natural products.
Their target group is millennial generation whose desire is to consumer ethical foods. Market
coverage strategies are mass, differentiated and concentrated marketing (Kotler and Keller,
2009) out of which, it is needed to select a strategy. Mass marketing focuses on customers who
have common intention, mass marketing, mass distribution and difficult to compete with
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competitors. This strategy is not suitable for Appy foods, since their target group and the product
is more specified, and no need to produce in mass.
Under the differentiated market, the goods are produced for several segments and design separate
offers for each (Kotler and Armstrong, 2012). But those companies enables to create the stronger
position within the segment and generate more sales than mass market. This marketing strategy
is appropriate for Appy Foods since they concern with the Millenials with own product mix is to
be designed to cater the needs for ethical foods. Here, the company can increase the customer
satisfaction and gain customer loyalty which are the objectives of new marketing plan.
2.4 Buyer behavior affecting marketing activities in various buying situations
Consumer buying behavior is the psychological process of making purchasing decisions
from pre purchasing decisions to post purchasing decisions (Kotler and Keller, 2004).
Organization’s marketing activities depend on the purchasing behaviour of customers, which is
influenced mainly by the key elements of brand of the product. There are four types of buying
behaviour expressed by Kotler and Armstrong (2012).
 Complex : Under this behaviour, customers spend lot of time to decide which
products are to be purchased. These products are precious, high price and always
customers seek the advices from expertise people prior purchases. Those have a
significant impact on purchases of customers. Examples: gem or diamond, luxury
car and selecting the University for Higher Studies.
 Variety seeking : Under this type, customers are not involved heavily on pre
purchases of goods as those are high in availability. Customer may select those
type of products according to their preferences and the time period. For example,
when a consumer intends to purchase a perfume, they select according to the
occasion and preference.
 Dissonance : This type of behaviour can be seen in industries like floor tiles,
bathroom fittings since, few options are there to select for customers. But they are
highly involved in making pre-purchasing decisions.
 Habitual : This buying behaviour can be seen in the product markets of essential
goods, rice, breads, meat, biscuits etc.. So the customers are lower in involvement
when making purchasing decisions. Because same quality of goods can be seen
everywhere, most of the time.
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2.5 New positioning for a selected product/service
Kotler and Armstrong (2012) states that product positioning is the place of product that
engages in the customer’s mind in contrast to their rival products. This is a marketing technique
of presenting the products in a best possible way to target audience. The product positioning
should be established according to the selected market segment.
In positioning strategy firstly the company should identify its competitive advantage. In the
Appy Foods, the new product of ethical foods is gained advantage especially via fulfilling
Millennial needs. It is unique in natural extraction of fruits and the nature of organic. Since they
target for Millennial, they need to advertise through social media and enable the customers to
purchase via online (Howe, 2015). They should clearly deliver the mission of being no1 in the
healthy food provider and ethical foods for new millennial.
Hence, the positioning should be done by an expertise then the messages will be secured by
creative ideas, high quality, immediate results etc. At the advertising stage Appy should convey
the message to the audience the importance of eco foods how it helps to boost up their standard
of living. Further the better results can be attained only is the Appy Foods position the ethical
foods via electronic media and devices.
TASK 3
3.1 How products are improved to gain competitive advantage
Appy Foods and Drinks should consider the way to develop their ethical foods to sustain
competitive advantage. Appy foods are competing with other organic products. Organization
introduces ethical foods range with organic and natural extractions to millennial customers. This
has insubstantial benefits. So, the product can be developed in two streams. One is conducting a
market research and obtaining data (millennial needs for ethical foods) and other is idea
generation, idea screen, concept development and testing (Kotler Armstrong, 2012). To achieve
the competitive advantage Appy foods should continuously develop their product. Appy should
use following steps for the new product:
 Idea generation – providing ethical foods for millennial
 Ideas screening
 They can enhance the concept of ethical foods via the healthiness and wealth of people
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 Under the business analysis, they can decide one price for executives and others for
young millennial.
 Research and Development department can further analyse the millennials according to
the age and race. Then they can develop vegan products as well.
 They can conduct a pilot survey and develop the product accordingly.
 Under the commercialization this can be introduce via social media because the
millenials are addicted to purchase via internet (Howe, 2015).
Competitive advantages are applied to the new products by following ways:
 Product or services differentiation : Appy should manufacture unique products or
services that must be not provided by their other competitors. This will make the products
its own image or identity in the eyes of users. As a result, they get attracted towards their
new product and purchase more and more goods or services.
 Cost leadership : Company have to sell their products at an affordable prices so that all
types of people can buy their productions. They should keep lower prices for their new
developed goods in relation to their competitors in order to lead the whole market.
 Focus : This means concentrating more on the targeted market better than other one else.
Firm can use either cost leadership or the product differentiation for this doing this. But
the main focus is on the selection of the target market.
3.2 How distribution will be organized to provide customer comfort
Appy has its own products and sell it to different target groups. Out of the distribution
channels, Appy uses two types of channels at present. First they produce natural foods and drinks
with low sugar and sells directly to the customers. They own branded goods are sold directly
which is known as direct marketing channel (Kotler and Keller, 2004)). Here the indirect
marketing channels also visible in selling goods via supermarkets, Tesco. They have their own
farms to extract natural fruits and they produce their unique goods for customers. In trading new
goods of ethical foods to millennial, the best distribution channel is direct channeling via social
media. Because the executives and high income earners are preferred to pay a premium price for
such eco friendly goods (Howe, 2015). Hence the direct marketing is preferred for ethical foods
to enter into the market.
Distribution channel consist of consultants, whole sellers, e- commerce websites, dealers
and retailers. The selected distribution channel states that strategies of the marketing as it is
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planned to impact the buyers directly. Company should recognize which type of distribution
channels are best suited for their users. Appy can apply the distribution channels for new
products by using the following distribution channels to sell those:
 Wholesaler
 Catalog
 Sales team
 Retailer
 Dealer
 Sales agent
3.3 How costs are set for new product to show objectives of Appy
Appy’s main objective is to provide ethical foods for Millennial Generation, attract
customers more. According to the Howe (2015) it is proven that, millennial purchasing power is
increasing when they mature into wealthy people and corporate executives. Further majority of
millennial willing to pay high price for eco and branded products. These factors are considered in
deciding price for ethical foods.
There are different types of pricing strategies, within which the company should select the
suitable one.
 Penetration price is where the organisation sets low price than their rivals to penetrate
market. Under this they need to make customer aware about the product and influence
them to buy. These prices are suitable where the markets are highly sensitive for prices.
They can earn more revenue since the cost falls.
 Under the Price Skimming, organisations set high price for the goods. This can be seen in
where the demand is high at high price and quality of the goods and brand is high.
 Premium pricing can be used for quality goods with high price.
 Economy pricing is best matched with the quality of the goods but services are low.
Hence the prices are low.
Appy foods are using penetration price and premium pricing. For the existing goods they
can use penetration pricing since they can attract more children and families. For the ethical
foods, they can use premium pricing to enter into the market. Because the millennial are brand
oriented since then they prefer to pay higher price for eco friendly products. Their objective is to
attract more millennial towards ethical product, which is a need of the present phenomenon.
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3.4 How promotional activity is integrated to attain marketing objectives
Promotion is one of the factor in 4P’ s mix. There are different kinds of promotions.
Among those advertising, public relations, personal selling, sales promotions can be named. To
achieve the marketing objective of providing ethical foods to millennials, in Appy, they should
integrate their promotional activities. To achieve the marketing objectives company should
coordinate and repeat the promotional acivities to aware of the consumer group. According to the
new product, since it serves for millennial, it should be promoted mainly via the social networks
and via portable devices. Promoting through different apps in the smart phones will be more
effective for this product. This company uses the features of Disney characters for kiddies
products and lunch boxes for promotions. Same strategies can be implemented in this ethical
product launch as well.
The promotional plan for the new product can be done as follow :
 Preparing posters for their new productions.
 Making brochure for the company's products and services
 Advertising on Television, radio, news channels, etc.
 Advertisement done through social media like Face book, Twitter, What's app, You tube,
etc.
3.5 Additional elements of the extended marketing mix
In addition to the 4p’s marketing mix, following elements are used in the marketing mix.
 People : Management and all the employees of Appy Foods should responsible for
marketing activities. They should convey the information on organizational culture to the
customers via their unique services. To this company, it is needed to hire efficient
employees for marketing department to deal with millennial. In this regard, they can train
their employees to produce ethical foods to enhance the brand value. Each and every
corporation depends on the people or employee who are running them from front line
sales staff to the managers. So, it is important to have the right people as they are
responsible for managing all the activities in an organisation. They are the one who train
their people for manufacturing new products on ethical basis.
 Process: Appy should consider of providing products and delivering via internet. The
effectiveness is depend on the marketing personnel who responsible for making
advertising. The marketing message should be delivered to millennial via social media, if
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and only they want to get succeeded with millennial. The delivery of the service which is
of new product is done with the existed consumers. Hence, how such services are
transferred is also a part of what users are paying for.
 Physical Evidence: Ethical foods should be packed with a green labels and eco-friendly
manner. Almost every services consist of some physical components even if the bulk of
what the customers are giving payments for is impalpable. For instance, Appy should
provide some form of printed material along with their new products that tells the
qualities and composition of their new goods.
TASK 4
4.1 Marketing mixes for two different segments in consumer markets
Covered in PPT
4.2 Differences in marketing products and services to businesses rather than user
Covered in PPT
4.3 How and why global marketing differs from domestic marketing
Covered in PPT
REFERENCE
Books & journal
Kotler, P. and Armstrong, G., 2012. Principles of Marketing, 14th ed. Pearson: prentice Hall
Kotler, P., and Gary, A., 2004. Principles of Marketing: 10th ed. New Jersey:
Prentice Hall.
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Kotler, P., and Keller, K., 2006. Marketing Management: 12th ed. New Jersey:
Prentice Hall.
Kotler, P., and Keller, K., 2009. A framework for Marketing Management. New York:
Pearson Education, Inc.
Lambin, J. 2008. Changing Market Relationships in the internet age, Presses Universitaires, de
Louvain
Online
Howe, K. (2015), “Why Ethical Brands Must Engage More: Millennials.Available at :
http://fortune.com/contentfrom/2015/10/06/ethical-brands-engage-millennials/ntv_a/
gd4BATQoEAfxgFA. Last accessed on 28th March 2016.
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