Marketing Concepts and Applications

This assignment delves into various marketing concepts and their practical applications. It covers topics such as consumer behavior, services marketing, and the 4 Ps of marketing (product, price, place, promotion). The analysis utilizes a range of academic sources and real-world examples to demonstrate how these concepts are applied in different marketing scenarios.

MARKETING PRINCIPLES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Elements of marketing process.........................................................................................1
1.2 Benefits and costs of marketing orientation.....................................................................2
2.1 Macro and micro environmental factors...........................................................................2
2.2 Propose segmentation criteria...........................................................................................3
2.3 Choosing targeting strategy..............................................................................................4
2.4 How buyer behaviour affects marketing activities in different buying situations............4
2.5 Proposing new positioning strategy..................................................................................5
3.1 Product development to sustain competitive advantage...................................................5
3.2 Distribution of products....................................................................................................6
3.3 Setting a product price......................................................................................................6
3.4 Promotion activities..........................................................................................................7
3.5 Additional elements of marketing mix.............................................................................7
TASK 2............................................................................................................................................7
4.1 Marketing mixes for two different segments in consumer markets.................................7
4.2 Differences between B2B(Business to Business) and B2C (Business to Consumer)......8
4.3 Differences between International and Domestic marketing...........................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing principles is a process that helps in identifying the needs of consumers and
then providing the same in order to attain satisfaction. However, it is essential for business to
undertake 4 P's marketing mix i.e. product, price, place and promotion in order to develop unique
business strategy and attain competitive advantage. Manger of firm is required to build different
ideas so that best promotional campaign can be launched in the marketplace to enhance sales and
profitability (Lantos, 2010). Through this, firm will be able to launch their products in
international market by expanding their operations. In the current report, Marks and Spencer
(M&S) has been selected which is a major retailer and provides different products such as
clothing, home products and luxury food products. Further, a detailed industry analysis has been
done of M&S by carrying out environment situation analysis. Also, marketing plan will be drawn
involving two different segments in consumer markets.
TASK 1
1.1 Elements of marketing process
Marketing process involves different elements that helps in producing and selling wide
range of products and services in order to attract customers and enhance sales (Czinkota and
Ronkainen, 2012). Following are the different elements involved in marketing process are as
follows-
 Situational analysis- It the first step, where M&S manager is required to determine the
environment of firm in which the business operates. However, through performing such
type of analysis it is essential for firm to determine the wants and expectations of
customers so that best quality products can be delivered to them. Further, business is
required to undertake different efforts in order to provide best quality products to clients
and pleasing their requirements.
 Marketing tactic- In the next step, after identifying the different wants and requirements
of clients business needs to develop effective marketing strategy such as targeting,
segmenting and positioning the product in the minds of customers (Darian and Tucci,
2013). In regard to this, business is required to develop different efforts and thus produce
effective advertisement and promotional strategies so that desired results can be attained.
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M&S can adopt both electronic and print media method for promoting the product and
attain desired targets.
 Marketing mix decision- Manager of M&S needs to adopt different marketing decision
by adopting marketing mix elements i.e. product, price, place and promotion so that
products can be promoted effectively as compared to competitors.
 Implementation of decision- At the end, implementing the decision helps in attaining
desired goals within firm (Doyle and Bridgewater, 2012).
1.2 Benefits and costs of marketing orientation
Marketing orientation can be stated as the type of activity that helps in carrying out
effective research and development within M&S. With the help of this, management of firm is
able to determine the taste and preferences of customers so that desired products can be provided
to them.
 Benefits- It can be stated that marketing orientation has varied benefits as it helps firm to
determine the needs and wants of customers (Gök and Hacioglu, 2010). However, as per
the needs of customers business is required to provide the products and thus attain
satisfaction. Also, M&S needs to deliver utmost quality products so that competitive
positioning can be achieved in marketplace.
 Costs- It states that marketing orientation provides huge cost to the business as it is
essential for management to undertake proper research in order to provide products and
services to consumers (Hutt and Speh, 2012). Therefore, M&S is required to invest huge
capital in order to implement innovative technology and thus deliver utmost quality
products to customers. Furthermore, M&S faces situation of increasing employee attrition
rate and thus hiring new workers and providing them training in order to increase their
skills requires cost for company.
2.1 Macro and micro environmental factors
Following are the different macro and micro environmental analysis undertaken by M&S
in order to take effective marketing decisions which are as follows-
 Macro environmental factors- Macro factors affect the business from outside and thus
influence them to make effective marketing decisions. It consists of political, economic,
social, environmental, legal and technological etc. Change in political environment of UK
affects the operations of M&S such employment law, promotional campaign etc. Social
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factors involves changes in taste and preference of customers affects the marketing
orientation of M&S. However, it is essential for business to produce the products as per
the needs of customers and satisfy them. Furthermore, economic recession is situation
that influences the purchasing power of clients and thus affects the customers to
consumer the products and services. Also, business is required to adopt innovative
technology products in order to produce products and services and thus attain desired
targets (Kardes, Cronley and Cline, 2010). At the end, business is also required to comply
with different environmental conditions and follow corporate social responsibility so that
they do not affect the environment.
 Micro environmental factors- Such factors resides within the business and thus it can
be controlled by the management themselves. It involves competitors, customers,
employees and suppliers (Lantos, 2010.). All these factors are affected by business and
thus M&S is required to satisfy their needs effectively in order to attain satisfaction.
Manager of Marks and Spencer is required to implement effective marketing decision so
that best quality products and services can be delivered to customers in order to attain
satisfaction.
2.2 Propose segmentation criteria
It is essential for M&S to design effective segmentation criteria in relation to the product
relating to apparels and footwear. However, here management is required to adopt demographic
segmentation criteria so that it helps firm to segment the footwear product. Business categories
shoes on the basis of demographic characteristic i.e. age and income level of customers.
However, considering the age of customers business produces wide range of products in order to
attract them and enhance the sales and profitability(Lefebvre, 2012). As business targets young
children of the age group of 5-12 years it adopts cartoon printed shows and clothes so that best
results can be attained. Furthermore, business also provides unique designs of shoes to the age
group of above 12 years in order to satisfy their needs. Another demographic segmentation
adopted is income level therefore business targets high class customer who can afford such range
of shows. As business charges premium prices for its products and provide latest design in order
to attract customers from all age groups. Also, business promotes its products by adopting
innovative methods and attract high range of customers. Also, business introduces certain middle
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range products for lower income groups so that they can provide shoes and clothes to each and
every segment of society. It helps firm to enhance the sales and profitability in market.
2.3 Choosing targeting strategy
M&S adopts differentiated targeting strategy with the aim to target the market and
provide them range of footwear. However, adopting such type of strategy helps in providing
benefits to customers in order to satisfy each and every customer group. Management of firm
targets the market by determining their needs and thus providing them desired products so that
utmost quality products can be delivered to individual (Leonidou and et. al., 2010). Main aim of
Marks and Spencer to target different types of age group through demonstrating different
characteristics and requirements of target customers. For instance, at the time when business
targets the kids group of 5-12 it provides cartoon printed shoes and clothes as it is more liked by
such age group. While, in order to target the age group of above 12 years business provides
unique style of shoes and clothes so that they do not prefer wearing cartoon printed products.
Thus, it is essential for firm to target the product as per the taste and preference of customers so
that best satisfaction can be attained. Business also aims to attract different age groups of
customers by providing them unique design shoes and clothes. Hence, it assists in enhancing the
sales and profitability of firm in marketplace.
2.4 How buyer behaviour affects marketing activities in different buying situations
Buyer behaviour can be stated as the activity that helps in identifying the nature of
individuals at the time of purchasing the products and services. However, it is essential for
business to determine the buying behaviour of consumers so that they can provide them similar
products in order to enhance sales and profitability (Perry and Kyriakaki, 2014). For instance,
behaviour of consumer is highly affected by different types of social and psychological aspects
in relation to affect the purchasing decision made by customers. It involves two different
situations of buying behaviour that affects the marketing activities build by M&S managers. It
involves developing marketing strategies such as new buy situation and modifying rebuy
situation. For instance, the customers who prefer to purchase the products at first launch. There
are different factors that affects the buying situations such as family, social groups etc. Another
buying situation is modified rebuy in such type of situation business analyzes that customers
prefers to buy the product after introducing certain modifications within its characteristics or
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features. Thus, such variations influences customers to purchase the products and services from
M&S.
2.5 Proposing new positioning strategy
Positioning strategy helps in introducing the product in the minds of customers so that
M&S can enhance its sales and profitability in marketplace. However, it is essential for company
to promote the product by using different features and characteristic in order to attract the
targeted segment. Management of business promotes the shoes in the minds of customers by
showing its attractive features and attain satisfaction (Samanta, 2013). Therefore, business assess
the taste and preference of customer of the age group of above 12 years and thus provide them
trendy and unique design shoes and clothes. Thus, adopting positioning strategy helps business
to undertake effective pricing method in order to attract every customer group. For instance,
business introduces its product range for middle class customers and thus sells them the products
at low prices in order to enhance sales and profitability. However, through implementing such
positioning strategy it assists M&S to attract desired target market and build competitive
advantage in market.
3.1 Product development to sustain competitive advantage
In order to attain an advantage in sustainable competitive market, management requires a
better product development. M&S can achieve such advancement by measuring the following
approaches, which are:
 Product Branding – An organization should direct its cumulative effects to build a strong
brand by advertising and marketing the products over time, which contributes as an
advantage for sustainable competitiveness (Donovan, 2011). It benefits in way like no
other company could copy the brand name and reputation of M&S. However, the
customers of M&S gets attracted from its wide range of products, and the concept of
generating new ideas for its food products.
 Product Mix – It is the method of product mixture or assortment used by the company to
offer a wide range of their products to its customers (Shaw, 2011). It helps to attain most
of the customers' attention towards the products offered by the company. In this process,
M&S has to focus on particular customer's groups for tending them to buy there available
products in the market.
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3.2 Distribution of products
It is an essential function for the management to decide the channel of distribution for the
products in the market. This responsibility lies under the marketing department of M&S to
determine the effective structure and manner of dispensing the products in an international
market. The structure for distributing the products are:
 Franchising – It is the method in which provides benefits to an individual generating
small business under an ideal business in international market (Roberts-Lombard, 2010).
It offers M&S the positive impact of instant brand recognition, a trusted product and
nation-wide advertising campaigns.
 Distribution channels – M&S could also adopt the various number of channels for
distributing the products in international market.
◦ Direct selling – The process of marketing or selling the products direct to the
customers.
◦ Selling through intermediaries – The flow of product from Producer/manufacturer to
agent to wholesaler to retailer to consumer.
3.3 Setting a product price
An organization generally set a price for the products as per its cost charged over
production and the market strategy decided by the management. M&S could also use the
specified methods for determining the price of its products, and the methods are:
 Pricing strategy – An organization has to first decide a purpose of setting a price which
could either aim to maximize profits or to defend a new entrant to increase the market
share (Reijonen, 2010). M&S has a variety of pricing strategies, depending on their own
unique marketing goals and objectives.
◦ Premium pricing – Setting a higher price than the competitors.
◦ Penetration pricing – capturing market share with a low price products while entering
a new market.
 Demand elasticity – To determine the price of the products as per the elasticity of
demand is an effective method to maintain the level of market share and market growth
for a product (Smith, 2012).
3.4 Promotion activities
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There are a number of promotion activities which can be used by the organization to
support its product in the market. The main effective promotion activities which M&S could use
to promote its product in the market are:
 Sales promotion – It is an activity undertaken by an organization to increase its sales in
way of rising usage and trial of the product (Saren and et.al., 2012). The methods used in
such activities are Free gifts, free samples, discounted prices, vouchers and coupons, etc.
M&S could use the methods like Buy one get one free, money off coupons, etc.
 Branding – The main aim of this promotion activity is to aware the customer and market
about the product availability and qualities. M&S has a good existing brand image which
is a plus point for the organization to build up a strong position in the market.
3.5 Additional elements of marketing mix
The elements in marketing mix are the 4P's (Price, Place, Promotion, Product), but as per
the current market trends there are more than 4P's which are people, physical evidence and
process management that construct it with 7P's (Marketing Mix – The 4 p’s of marketing, 2014).
 People – Relates to the targeted market and the customers, along with the employees and
management of the organization.
 Physical evidence – It pertains and describes the business' presence and establishment in
the marketplace.
 Process management – it includes factors affecting the system or process of rendering the
services in the method of production and products distribution in the organization
(Russell-Bennett, Wood, and Previte, 2013).
TASK 2
4.1 Marketing mixes for two different segments in consumer markets
Business is planning to develop attractive offer of promoting new footwear in market for
two different segments of customers. Following is the marketing mix for two different consumer
market segments are as below-
 Product- M&S launches new shoe product in market for the age group of 5-12 and above
12 years. Hence, for this marketing of the product will differ from each other as business
undertakes design, look, features etc. into consideration (Saylor. 2012). For instance, for
the age group of 5-12 company provides cartoon printed products as it attracts them while
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for sge group of above 12 M&S provides trendy and unique design and colour products
so that it satisfies their needs.
 Price- Business is required to fix the prices of the product as per the quality and size of
shoes (Doyle and Bridgewater, 2012). However, for the age group of 5-12 business will
be charging high prices as it requires huge cost in implementing unique technology
machines and overcome the fixed cost of the product. While, for the above 12 years range
of products it will charge price based on the trendy and quality of product.
 Place- Here, business uses the same place of selling the shoe i.e. store of M&S. For this
business selects its exclusive store located at the time prime locations such as in shopping
mall so that large number of customers can reach the store. Also, firm can choose internet
method for selling the products and increase the sales of firm in market.
 Promotion- However, in order to promote the new shoes in diverse market segment
business uses both print as well as print media (Bowie and Buttle, 2013). As business
targets premium class customers therefore it advertises into social media also.
4.2 Differences between B2B(Business to Business) and B2C (Business to Consumer)
1 Meannig B2B is a market where products are
sells or purchases to other businesses.
B2C is different to B2B where
selling and purchasing activites of
products are directly between
customers and business.
2 Focus Marks and Spencer are focus on
market development
In these, Marks and Spencer are
focus on market penetration.
3 Target market Marks and Spencer considered small
target market because only businesses
are participated in B2B procedures.
In these, Marks and Spencer
considered large target market
because different kind of
customers are involved in B2C
4 Market type Market type of Marks and Spencer is
rational in B2B which considered
reason and logic together.
Market type of Marks and Spencer
in B2C is emotional which is
flexible as according to consumers
taste and preferences (Lovelock,
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Patterson and Wirtz, 2014).
5 Demand Marks and Spencer are usually create
demand on initial level among other
businesses.
In these context, Marks and
Spencer are make to order demand.
6 People Interest people in B2B procedures of
Marks and Spencer are brokers,
dealers, agents and wholesellers.
In these, interested people in B2C
procedures of Marks and Spencer
are only customers (Reijonen,
2010).
4.3 Differences between International and Domestic marketing
1 Meaing International marketing is different
from domestic market which deals in
both domestic and international level
of market. Exchanges of goods and
services are one country to other
countries (Donovan, 2011).
Domestic marketing refers to as
local market which deals in city to
city, state to state etc. in other
words only home countries
marketers are deals in market
place.
2 Hurdles International market have there some
specific restrictions which are
compulsory to follow up by Marks and
Spencer.
In the domestic market there is no
such type of restrictions which are
followed by Marks and Spencer.
3 Currency type Marks and Spencer are deals in
different type of currencies in
international trade level.
Whereas in domestic market Marks
and Spencer are only deal in one
home currency.
4 Government
involvement
In the international market high level
of government involvement because
different countries are involved and
every country have there specific
government.
There is low level of government
involvement because dealing of
goods and services are only in
home country level (Shaw, 2011).
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5 Cultural
factors
Marks and Spencer deals in various
types of cultural factors due to
international level trade.
Marks and Spencer involved only
home country culture due to
participation of only home country.
6 Risk factor High level of risk are face by Marks
and Spencer because different level of
government, political issues, cultural,
legal factors are involved in
international marketing (Saren and
et.al., 2012).
Risk are face by Marks and
Spencer as high but not more than
as international marketing risk.
CONCLUSION
From the above study it can be articulated that marketing is a very crucial concept as it
helps in providing best products and services to customers in order to satisfy their needs. M&S
undertakes effective marketing strategies so that utmost quality products are delivered to target
market. Business also adopts demographic segmentation in which age and income level has been
selected that helps in providing best range of shoes and clothes to customers and satisfy needs of
each and every income level groups. With the help of effective marketing strategy business
promotes its goods and services and enhance the sales and profitability.
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REFERENCES
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Bowie, D. and Buttle, F., 2013. Hospitality marketing. Taylor & Francis.
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consumption. Journal of Consumer Marketing. 30(5). Pp.427–435.
Donovan, R., 2011. Social marketing's mythunderstandings. Journal of Social Marketing. 1(1).
pp.8-16.
Doyle, P. and Bridgewater, S., 2012. Innovation in Marketing. Routledge.
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Marketing Intelligence & Planning. 28(3). pp.291–309.
Hutt, M. and Speh, T., 2012. Business Marketing Management: B2B. Cengage Learning.
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Samanta, A. K., 2013. Social marketing: A critical evaluation. International Journal of
Managment, IT and Engineering. 3(12). pp. 406-409.
Saren, M. and et.al., 2012. Critical marketing. Routledge.
Shaw, S., 2011. Airline marketing and management. Ashgate Publishing, Ltd..
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Online
Marketing Mix – The 4 p’s of marketing. 2014. Available through:
<http://www.marketing91.com/marketing-mix-4-ps-marketing/>. [Access on 1st March
2016].
Saylor. 2012. Marketing Principles. [pdf]. Available Through:
<http://www.saylor.org/site/textbooks/Principles%20of%20Marketing.pdf>. [Accessed
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