Marketing Principles Elements: Doc

MARKETING PRINCIPLES

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P.1. Explain the various elements of the marketing process.......................................................3
P.2. Evaluating the benefits and costs of a marketing orientation for Volkswagen organisation
.....................................................................................................................................................3
TASK 2............................................................................................................................................4
P.2.1 Show macro and micro environment factors which influencing marketing decisions......4
P.2.2 Proposing segmentation criteria to be used for product in different markets....................5
P 2.3 Choose a targeting strategy of a selected product and services.........................................5
P 2.4 Demonstrating how buyer behaviour affects marketing activities in different buying
situations.....................................................................................................................................6
P. 2.5 Proposing new positioning for selected new products/services........................................6
TASK 3............................................................................................................................................7
P 3.1 Explain how products are developed to sustain competitive advantage............................7
P 3.2 Explain how distribution in arranged to provide customer convenience...........................7
P 3.3 Explain how prices are set to reflect an organisation objectives and market condition . .8
P 3.4 Illustrate of how promotional activity is integrated to achieve marketing objectives.......8
P 3.5 Analyse the Additional elements of the extended marketing mix.....................................9
TASK 4............................................................................................................................................9
P 4.1 Plan marketing mixed for two different segments in consumer market............................9
P 4.2 Illustrate differences in marketing product and services to business rather than customer
...................................................................................................................................................10
P 4.3 Show how and why international marketing differs from domestic marketing...............11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing principles is essential part for the business, which must be taken into account
by each organisation's marketing professionals in case of generating sufficient amount of success
in marketplace. In addition to it, the report will be discussed about various elements of the
marketing process and Show how and why international marketing differs from domestic
marketing. Beside from it, the assignment also will be discussed about how products are
developed to sustain competitive advantage and how prices are set to reflect HSBC organisation
objectives and market condition. The report also would be discussed about Plan marketing mixed
for two different segments in consumer market of Vodafone UK and ow and why international
marketing differs from domestic marketing.
TASK 1
P.1. Explain the various elements of the marketing process
Marketing: Marketing is the social process by which individual and group obtain they need and
want through creating and exchanging products and values with others.
Customer's needs, wants and demands:
Each successful business starts with knowing its customers in well manner. Customers
are those people who are buying and selling those products and services which are offered by
organisation in marketplace. Customers might have high bargaining power by which they can
reduce the prices of specific products and services which they want to purchase (Alserhan,
2016). Furthermore, car selling approach can be gained by their companies on the basis of sales
figure alone rather than more customer oriented bases such as customer satisfaction or customer
loyalty. For instance, driving hard bargains is still prevalent in many cars showrooms. So, it can
be said that according to customer's needs, the car showroom sales professionals require to be
representing features of cars and it’s beneficial for consumers in effective ways. By identification
of wants and demands of consumers effectively, sales executive of automobile organisation
needs to present its services in an appropriate form.
P.2. Evaluating the benefits and costs of a marketing orientation for Volkswagen organisation
Product concept: It has been examined that customer prefers the product that has better
quality and performance and features as opposite to normal product in the product concept. In
case of auto-mobile sector (Armstrong, Adam, Denize and Kotler, 2014). Volkswagen is being
offered valuable and quality of luxury car products which have potential for gaining sufficient

amount of profitability within business environment. The product of organisation is capable
enough to gain appropriate amount of profitability after computing its other cost of marketing
orientation within business. So, products must be given specific costing by which they can gain
relevant amount of profitability.
Competitive advantage:The competitive advantage can be gained by the professional
through offering various types of innovative and unique products that might attract its customer
more towards its existing auto-mobile products so that effectiveness can be gained in relevant
form. Promotional activities may bring out more customers for the business products
(Armstrong, Kotler, Harker and Brennan, 2015).
Customer satisfaction: With the assistance of various types of marketing essential
efforts, it can promote new offering and innovative product range in market in better way. With
the assistance of marketing orientation practices, the organisation can enhance its professionals
in respective manner.
TASK 2
P.2.1Show macro and micro environment factors which influencing marketing decisions
Micro environment: The CEO of Volkswagen attended a meeting with organisation in
order to recognise immediate challenges facing by the company in industry. The company
require to formation of effective strategy through which they can reduce the influences of micro
factors of business (Bose, 2010). This factors could be Suppliers can control the success of the
business when they hold the power, the resellers can reduce selling quantity of products. Apart
from it, Volkswagen organisation's consumers and competitors might make impact upon its
marketing strategy and their decision towards marketing orientations. So it can be said that,
micro environmental factors of the business made widely influences upon its marketing
decisions.
Macro environment: Varied macro environmental factors such as demographic factors of
the country where specific types of marketing strategy need to be formulated by its professionals.
Economic factors of the nation can influence upon profitability and productivity of business.
Apart from it, the organisation require keeping up with advanced technology within its existing
and new products as per its effective strategy (Brunswick, 2014). Social and cultural elements of
different country possess adverse, Volkswagen marketing managers need to build up their
strategy by considering all these macro factors.

P.2.2 Proposing segmentation criteria to be used for product in different markets
Segmentation criteria: It has been examined that Volkswagen organisation requires
utilisation of segmentation approach within its existing marketing strategies in order to increment
within productivity and profitability of the business. Variety of luxury and automotive car
products are being delivered by the company to its existing customers in various marketplace.
So, it is being necessary to have proper segmentation of its customers as per their demand and
needs criteria in industry which can boost up profitability level of firm.
Demographic criteria: Volkswagen organisation is operating its business functionalities
in different-different markets (French, ed., 2010). So, it is essential for its marketing manager to
implement segmentation strategy as per its current location in which they operate. Demographic
criteria must be taken into account in terms of classification of its various products as per
specific area of demand.
Gender: Volkswagen can separate its products and services as per segmentation of its
auto-mobile products on the basis of gender demands. Different people demand for unique
product which is suitable for their age and gender group. So, company needs offering these types
of products as per its demands in market.
P 2.3 Choose a targeting strategy of a selected product and services
Volkswagen is one of the largest auto-mobile product manufacturing company in UK,
which is offering variety of different range of luxury car products and services according to
customers needs and demand (Wang, 2011). The company's marketing professionals are utilising
the targeting strategy to delivering its unique products in different ways from its existing
competitors in industry.
Cost leading strategy: As per this strategy, Volkswagen organisation require to offering
its existing and innovative products and services at lower rate from its competitors in
marketplace, which influences upon its targeted audiences positively. Varied auto-maker
companies are operating in UK's market and it is needed to offer its products lower than its
competitor's products which are influencing its profitability and productivity.
Product differentiation: It is also one of the essential targeting strategy which can be
adopted by its marketing professionals to displaying its innovative products in unique ways by
which they can gain targeted response from its loyal audiences. Numbers of innovation can be
implemented upon its luxury car products which must be different from its competitor’s strategy.

So, it enables the organisation to offer its auto mobile products totally different from its
competitors in market.
P 2.4 Demonstrating how buyer behaviour affects marketing activities in different buying
situations
Buyer behaviour: According to consumer’s need, demand and wants, the company
should be offering its products and services. Volkswagen sales executives require better
understanding the current changes in existing products and services of the business and as per
customer perception towards particular products in industry (Jobber and Ellis-Chadwick, 2012).
According to buying behaviour of their loyal customers, its marketing manager modifying its
marketing activities of business. The business has opportunities to effectively understand the
buyer’s needs and expectation from the organisation and as per its necessity, they should offer its
innovative products in different ways which attract customer more towards buying it in different
form.
Environmental influences: Various environmental factors are making influence upon
buying behaviour and habits of consumers of Volkswagen organisation. It defines that
complexity of cultural influences such as knowledge, belief, traditions, customers, arts and moral
law of consumer's habit influencing marketing activities of the company in case of offering
various types of auto mobile products and services which are offered by organisation in industry
(Wangand Pizam, eds., 2011). Its marketing manager needs modification in marketing activities
of the business within different buying behaviour of consumers.
P. 2.5 Proposing new positioning for selected new products/services
Positioning: Effective product positioning is essential for success of Volkswagen
organisation. Product positioning feeds into the betterment of marketing practices such as the
channels through which it is been sold into market. According to it, Volkswagen organisation
require adding up new characteristics and features in their existing and new products which
contain more demand in the marketplace (Kerstetter, 2011). In order to introducing new auto-
mobile products in new marketplace, its marketing professionals need to utilisation of
segmentation approach to make classification of its various types of customers are pre their
perceptions and age group in the market which drives wide range of consumers demand in the
market in sufficient form. As per targeting of specific market and consumers, its professionals
require picking the target which is set out by them. They need to select a market where

innovative auto-mobile product might gain better response from the targeted market. According
to their predetermined target, its professionals require to positioning of new products among
targeted audiences in market.
TASK 3
P 3.1 Explain how products are developed to sustain competitive advantage
Varied ways suggested for HSBC organisation in order to making development within its
existing products that can sustain competitive advantage within competitive banking industry
effectively. Numbers of companies banking institutions are working in industry, so they creating
competitiveness for HSBC company. Gaining sustainable competitive advantages is the focal
point of corporate strategy. It enables to making improvement and maintain the competitive
positioning of the business in industry effectively (Kotler and Armstrong, 2013). As per
customer demand and needs products need to modified according to them, which has potential to
gaining sustainable advantage by which profitability of the enterprise might be increased.
Numbers of baking and financial facilities are being provided by HSBC organisation in banking
industry in UK. So its marketing and R&D professionals require to examining proper demand of
modification and necessary changes within its existing financial products, through which its
customer base may be raised. As per modern demand and necessity in industry, they need to
make betterment within its financial products which attract more its customers to gaining
competitive advantages in improve form.
P 3.2 Explain how distribution in arranged to provide customer convenience
There are various structures in which business arrange distribution to provide customer
convenience. In case of banking sector, varied of distribution channel and formates can be
adopted by HSBC organisation in order to delivering its financial products and services within
industry in respective manner. HSBC bank can established its new branched in various different-
different marketplace where demands of its services most.
Integrated distribution channel: This is an effective way which can be followed by
HSBC organisation in order to creating a unified and seamless experience for consumers to
interact with enterprise (Lagarde, 2012). Integrated marketing is a holistic approach in which
business can communicate its services with effective marketing efforts of its professionals.
Organisation requires to establishing its distribution channel at major cities of nation. From
which provide appropriate financial services adequately.,

Franchisee: Setting up a franchisee for businesses in order to getting up new
development in such areas where something new activities can be gained in relevant form. The
bank can establish new franchisee in numerous markets of nation and as per its demand, they
need to set up their distribution channel, which allows business to boosting up its sales.
P 3.3 Explain how prices are set to reflect an organisation objectives and market condition
Pricing strategy: HSBC organisational professionals need to utilisation of proper pricing
strategy of business products and services which can enforce upon its existing customers
effectively. Variety of financial and banking services are being offering by the company, so its
professionals need to analyse costing of each facilities and formulate strategy according to them.
Market condition: As per organisation gaols and objectives in industry, it's pricing
structure need to be set up according to them (Lees-Marshment, 2014). Market condition is one
of the crucial element which influence the pricing policies of the business in industry. So as per
its competitors offering,HSBC professionals need to set up lower pricing polices which attract
customers more.
Product life cycle: According to product life cycle, HSBC banking products getting
targeted responses from its existing audiences in current marketplace. So they need to make
betterment within its existing products which can enables to organisation to maintain its products
life cycle at top level efficiently.
P 3.4 Illustrate of how promotional activity is integrated to achieve marketing objectives
Promotional activities is needed to implemented by its professionals in order to gaining
competitive advantage in market at frequent base. Various types of promotional activities is
integrated to marketing objectives of the firm.
Advertising: Advertising plays a vital role in case of promoting HSBC organisation's
existing products and services. Various types of new offering being delivered its marketing
professionals through utilisation of advertising approach. In today's world, digital technologies
has been playing crucial role for making advertising approaches more broad. So with assistance
of varied of digital techniques and mechanism, HSBC can easily promote its existing products in
order to accomplishment of its marketing objectives.
Online and social media marketing: It is most vital alternative option for HSBC
organisation to making promotions of its multiple financial and banking products and services
efficiently. Various types of online tools and techniques can be utilised by its marketing

professionals to having promotional activities on online mode, where people comes to know
about its variety of banking services in easy manner.
P 3.5 Analyse the Additional elements of the extended marketing mix
Apart from 4P's marketing mix, nowadays, there are three more elements are being
included into marketing mix approached to extension of this approach and better understand to it
as well.
Process: It is referred to the process and system that deliver a product to a customer.
According to this extended approach, it defines that, make a process which makes customer's
expectations in a clear way (Lefebvre, 2012). Thus, formation of appropriate process of product
development and its marketing efforts, which enables it to gaining expected success.
People: This is a most essential factors of extended marketing mix. Peoples are also
added in the product as well as the services of the marketing mix. It defines that, people plays
important role for getting desired success of the business. The product must be delivered at right
people to right place at right time to getting better response from industry.
Physical evidence: Physical evidence are the tangible factors that enables the business to
add up otherwise intangible product to differentiate itself. HSBC organisation need to prove
through displaying physical evidence which representing differentiation from its competitor's
products.
TASK 4
P 4.1 Plan marketing mixed for two different segments in consumer market
Marketing mix approach can assist Vodafone UK business to enhancement its existing
products and services strategy to different segmentation in consumer's marketplace effectively.
Product: Vodafone is current offering variety of different types of telecommunication
services in industry. Its professionals need to classification of its telecom services and internet
vouchers for youngster and senior consumers as well (Nooshinfard and Ziaei, 2011). Two
different kinds of products must be offered by its professionals to its significant development.
Price: Two different products which is, internet and calling services, both must be given
appropriate pricing for each one in order to attract its targeted audience in market in effective
manner. Prices of both products should be affordable and lower than its competitors in market.
Which allow business to increasing its market share.

Place: According to marketing mix strategy of the business, its professionals required to
target appropriate place of the state, where desired response can be gained from its existing
consumers in market. Online platform in one of the best place, where the business can gain
sufficient amount of success. As per their targeted segmentation of internet and calling vouchers,
they promote them at the place efficiently to gaining competitive advantages.
Promotion: Promotional activities is one of the essential terms which must be taken into
account by its marketing professionals in order to gaining sufficient success in order to gaining
desired criteria of competitive advantages (Serrat, 2017). Vodafone UK need to having
promotional activities on online platform and social media marketing approaches to reach out to
targeted audiences in the marketplace.
P 4.2 Illustrate differences in marketing product and services to business rather than customer
Different between B2B and B2C marketing approach:
Ground Business to customer Business to Business
Association Focusing on advantages of
products
Focusing of logic of
product
Distribution channel Consumer could demand
numbers of distribution
channel
There is usually only one
distribution channel
Marketing planning Market planning would
involve common demands of
customers
The continuous of
marketing planning must
be elaborated
Content There is no role of content in
B2C
High detailed content is
essential
Command chain In B2C an individual typically
makes their own command
B2B marketers have
much longer chain
dictation
Varied of differences can be seen into B2B and B2C marketing approaches. In B2B
approach, the distribution channel of marketing activities can be executed between two
organisations.

P 4.3 Show how and why international marketing differs from domestic marketing
With the help of the following statements, differences between domestic and international
marketing can be seen:
 In case of domestic marketing, it refers to the marketing within the geographical
boundaries of the nation and international marketing refer to the activities of
manufacturing, promotion and distribution and advertisement of selling produces are
executed over the geographical limits of the nation (Shank and Lyberger, 2014).
 The areas were by domestic marketing is small and in terms of international marketing it
serves large areas.
 Domestic marketing operated its business functionalities in a single country and in case
of international, it operated its business operations more than one country.
 It needs capital requirement less and international marketing require for huge amount of
capital requirements.
CONCLUSION
From the above investigation about marketing principles, it is concluded that, various
elements of the marketing process can be classified. Macro and micro environment factors
which influence the marketing decision of Volkswagen organisation. In addition to it, the report
concludes about Demonstrate how buyer behaviour affects marketing activities in different
buying situations. Beside from it, explanation about how prices are set to reflect HSBC
organisation objectives and market condition in industry. Marketing mix for two different
segmentation in consumer market where Vodafone UK business can get sufficient success. It is
also concluded about how and why international marketing differs from domestic marketing.

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