Market Orientation of Domestic and International New Ventures

The provided content focuses on various aspects of marketing, including market orientation, entrepreneurship in international marketing, and the differences between domestic and international marketing. The articles and publications cover topics such as archival reference services, marketing to register organ donors, women's argan cooperatives, organizational culture, and pharmaceutical market management. Additionally, the content includes discussions on internal marketing, love of money and religiosity, green marketing, and positioning schools. It also features online resources, including the 7 P's of marketing mix, differences between international and domestic marketing, and a service marketing mix (extended marketing mix).

Marketing Principles

TABLE OF CONTENTS
introduction......................................................................................................................................3
LO1..................................................................................................................................................4
1.1 Explaining various elements of marketing process ..............................................................4
1.2 Evaluation of cost and benefits of market orientation...........................................................7
LO 2.................................................................................................................................................8
2.1 Depicting various micro and macro environmental factors...................................................8
2.2 Proposing a segmenting criteria for products in different markets......................................10
2.3 Selecting a targeting strategy for selected product-services................................................11
2.4 Demonstrating how buyer behavior affects the marketing activities in different buying
situations....................................................................................................................................12
2.5 proposing new positioning for a selected product/service...................................................14
LO3................................................................................................................................................15
3.1 Explaining how products are developed to sustain competitive advantage.........................15
3.2 Explaining how distribution is arranged to provide customer convenience........................16
3.3 Prices are set to reflect an Sainsbury's objectives and market conditions...........................16
3.4 How promotional activity is integrated to achieve marketing objectives............................18
3.5 Analyse the additional elements of the extended marketing mix........................................19
LO4................................................................................................................................................20
4.1 Plan marketing mixes for two different segments in consumer markets.............................20
4.2 Illustrate differences in marketing products and services to businesses rather than
consumers..................................................................................................................................21
4.3 How and why international marketing differs from domestic marketing............................22
CONCLUSION..............................................................................................................................23
REFERENCES..............................................................................................................................24

INTRODUCTION
Marketing principles include various strategies to penetrate a product of an organization
into the market. It includes various pricing and promotional strategies that a company is required
to execute at the time of launching new product. It is not necessary that the firm should use
marketing principles to promote its new product in the new market. But also these principles can
be used to promote existing products into the same or new markets (Home, 2015). It also
involves of market segmentation in which the firm selects a particular market on the basis of age,
race, caste etc. Sainsbury's is a UK based public retailing organization. That deals in
hypermarket, forecourt stores, and superstores. Convenience/ forecourt stores and supermarkets
are also some of the important products with which Sainsbury's deals in. It is Public Limited
Organization founded in 1869 in Holborn, London, UK which is also its headquarter in present
time.
Revenue generation of the chosen retail firm is around £23.775 billion. Also somewhere
around 161,100 number of employees are being employed and working in the Sainsbury's retail
organization. Also Sainsbury's Bank Plc, Sainsbury's Supermarkets Ltd., Sainsbury’s
Convenience Stores Ltd, Netto UK (50%) etc are subsidiaries of Sainsbury's Public Limited
Company. It also has two home retail groups names as Argos and Habitat retailer. Sainsbury's is
the second largest supermarket chain in UK and is also listed on London Stock Exchanges
(Sainsbury's, 2016). Here with the help of the report the Sainsbury's is looking forward to
prepare a marketing plan for its new product. New product with which the Sainsbury's will be
coming in the market is Naked Coconut Water. It has been categorized as a chilled fruit juices
and smoothies by the Retail Company.
Report will include various elements of marketing process. Along with that report will
also include various cost and benefits of marketing orientation process of the chosen retail
Company. Afterwards, various micro and macro environmental factors will be discussed in the
report that influence the marketing decisions (Ennew, Watkins and Wright, 2014). Explanation
of how the products are developed in order to sustain the competitive advantage will be given in
the report. Furthermore, various additional elements of marketing mixes will analyzed and
mention in report. At last the report will also include a plan of marketing mixes for two different
segments in the consumer markets. Also, it will illustrate difference between various marketing

products and services in business to business as well as business to consumer markets. Moreover,
difference between domestic and international marketing will also be depicted in the report.
LO1
1.1 Explaining various elements of marketing process
Marketing process can be defined as the sequence of steps in which situation has been
analyzed so that opportunities can be identified. Strategies are to be formulated for value
proposition, tactical decisions are created and the plan is implemented and the desired results are
to be monitored. As per the American Marketing Association (AMA), marketing process is all
about the creating, communicating, delivering, and exchanging offerings which are made for
thew customers and society (Urde, and Koch, 2014). Furthermore, marketing process are to be
made to satisfying the Sainsbury's customer needs and wants as well as to emphasis more on
marketing and customer satisfaction. There are various types of marketing concept which should
be considered in the organization and they are marketing evolution, societal issues and emergent
philosophies, customer and competitor orientation, marketing orientation, efficiency and
effectiveness.
In these all concepts, Sainsbury's has targeted the market orientation in which the
company will know about the customers' expectations and accordingly able to meet the
customers' needs and requirements to satisfied them. On the other hand, there are some
limitations of the marketing concept (Singhapakdi and et.al., 2013). Some disadvantages are it
places too much emphasizes on the satisfaction of consumer needs and wants. Second is not gets
desired cooperation from the other departments. It is difficult for Sainsbury's to determine the
needs and preferences of the target market. There are various elements of marketing process
which are required to be considered while applying this process in the Sainsbury's organization.
This process is implemented to prepare marketing plan for the launch of new product of
company. Various elements are as follows: Marketing Audit: The marketing audit helps the firm in analyzing and evaluating the
B2B marketing strategies, activities, goals and results. This can be carried out through
assembling the overview of Sainsbury's, then describing the marketing goals and
objectives, explaining of the present customers, then strategies are made who to target for
which products and services of Sainsbury's (Shabelnyk, 2014). Next step will be about

the past experiences which should be described, afterwards some competitors will be
identified then communication plan will be made. Its significance is focusing on the
communication of a consistent message to the right customers. It helps Sainsbury's in
re4vealing the new, unknown or neglected markets and assists in making effective
strategies to increase the market share. Integrated Marketing: It can be defined as the marketing strategy which stresses the
importance of a consistent, seamless, multi-dimensional brand experience for the
consumer (Peñaloza, Toulouse and Visconti, 2013). The significance of integrated
marketing in Sainsbury's are helping in the branding techniques, customer need and
behavior identification, product development and delivery, making effective
communication strategies.
 SWOT analysis: This aspect is done for the internal audit of the organizational to analyze
the various marketing aspects. The SWOT of Sainsbury's are as follows:
Table 1: SWOT analysis of Sainsbury's Plc
STRENGTH WEAKNESSES
 High opportunities to develop
business
 Wide growth prospects in the
market
 stable financial position
 strong internal environment
 Lack of sales promotional
strategies
 Low sales turnover
 Limited growth in market segment
OPPORTUNITIES THREATS
 Product development techniques
 Online market segment
 Product and market expansion
 Reducing market sustainability
 Tough trading corporate
environment
 Situational Analysis- It can be defined as a collection of methods which is used by
managers to analyze firm's internal and external environment so that able to understand
the organization's capabilities as well as customers an d business environment. In other
words, Sainsbury's is required to understand and analyze two things comprising of its
capabilities as well as an environment in which it is operating (Kotler, 2012). In order to
analyze capabilities of the Sainsbury's, it is required to analyze various external and

internal environmental factors for the company. So for this, company will analyze its
capabilities or resources through internal tools and for this, Sainsbury's will use the BCG
matrix to know what are their required resources. Along with the analysis of capabilities
and environment the situational analysis should also include present, past and future
aspects of the firm. This element of marketing process also helps in revealing the gap of
what are the actual needs of the customers and what they are actually getting. For
example: if the Sainsbury's has the required budget for its products and services then they
have to make their plans and marketing process in that required budget.
 Marketing Strategies- Marketing Strategies can be defined as the strategy which
combined all the organizational goals to make an effective marketing plan. The
strategies related to the marketing of the products and services mainly focuses on the
customer satisfaction by fulfilling their needs and requirements. It will also helps in the
segmenting, targeting, and positioning of the Sainsbury's products to desired customers
(Peñaloza, Toulouse and Visconti, 2013).
 Marketing Mix Decisions- Marketing mix is the set of four decisions which are to be
made in context to the launching of the new products. These four decisions are about the
product, price, promotion and place. This is another important decision that is to be used
by Sainsbury's to make marketing decisions (Palmer, 2012). It involves Sainsbury's
product development, distribution contracts. It also include pricing decision making
policies and promotional campaign which are used by Sainsbury's for the development of
their marketing plan.
 Implementation and Control- After the final plan has been made and also the product
has been launched in the market. Then the results of above marketing efforts are being
monitored. So that if any changes is required to be made it can be made within time.
Changes have to be made because small change in the needs of customer can affect the
market of Sainsbury at large (East, Wright and Vanhuele, 2013). That is why there is
continuous need of monitoring and adaptation of the changes in the needs and wants of
the consumers. When the marketing plan of Sainsbury's will be execute then after
implementation, controlling will be done. This controlling will be done by taking

feedback from their customers and try to rectify the plan. In this, customers' needs and
requirements will be consistently required for the long term.
1.2 Evaluation of cost and benefits of market orientation
Market orientation is a model that is used by the business enterprise for delivering
products designed according to the consumers’ needs and wants. Also involves in product
functionality as well as product efficiency. In other words market orientation is a process through
which Sainsbury's analyze various needs and demands of its customers.
Sainsbury's may find various benefits out of this process such as:
With the help of market orientation the chosen retail sector company will be able to
analyze the actual needs and demands of its existing as well as new customers, This will not only
help in retaining old customers but will also help in adding new customers (Palmer, 2012).
Although, Sainsbury's provides goods on little higher price than its competitors. But provides
fine and finished quality goods to its customers. This is because of the sound marketing
orientation and strong marketing intelligence system. This will helps in identifying the customers
needs and requirements for the further use. Further it will help in increasing the customers’ base
and loyalty (Kabani, 2013). That will further help in the expansion of company in the UK.
Furthermore, marketing orientation also helps in the building the competitive advantage for
Sainsbury's by offering with unique feature. It also assists in benefiting in the customer
satisfaction which in turn provides the chosen company with more customers, retention of
customers and increase in the profitability of the company. Market orientation helps in analysis
of the actual needs and wants of the consumers and helps in grabbing opportunities which further
help the Sainsbury's in sustaining competitive advantage over its rivals in the market. The other
advantages of marketing orientation are to developed and produce products which not only meet
the customer needs but do so in timely manner (Milligan, Winch and Adams, 2012). It also helps
in promoting the culture of experimentation as well as assists in drive constant improvement in
company processes and systems.
Sainsbury's may also carry cost during market orientation:
Market orientation process leads to incur high cost to the firm. Also takes long period of
time while analyzing the demands of customers while going through the process (Babin and

Zikmund, 2015). Sometimes the risk of underestimating the market and customer arise in market
orientation. Also the Sainsbury's has to respond on the quick market changes. For example,
Constant product modifications are to be done in Sainsbury's which also means ongoing
investment in new equipment and product iterations.
LO 2
2.1 Depicting various micro and macro environmental factors
Sainsbury's plc, implementing PESTLE analysis for the audit of its external
environment (macro factors). Porters' Five Forces model are for internal environment (Micro
factors) and they are as follows:
Porters' Five Forces model of Sainsbury's Plc: Threats of substitute products: The threat of substitutes in the grocery retail market is
considerably low for food items and medium to high for non-food items. For example
Clothing in this substitutes can be Tesco. Threat of entry of new competitors: Here, new competitors into the retail industry is low.
Major brands that have already captured the food retail market are Tesco, Asda and
Sainsbury’s and they account for 80% of all shopping in the UK (Durkin, McKenna and
Cummins, 2012). Intensity of competitive rivalry: In the food and grocery retail industry is extremely high.
Sainsbury's faces intense competition from its direct competitors, including Asda, Tesco
and Waitrose, which are competing with each other over price, products and promotions
intermittently. Bargaining power of buyers: in this, negotiation power of purchaser is fairly low. It has
been proposed that customers are attracted towards the low prices, and with the
availability of online retail shopping, the prices of products are easily compared and thus
selected (Cox, 2016). Bargaining power of suppliers: Here, the bargaining power of suppliers is fairly low. It
should be noted that the suppliers are inclined towards major food and grocery retailers
and dread losing their business contracts with large supermarkets.
PESTLE Analysis of Sainsbury's Plc:

 Political- Before launching a product in market the Sainsbury is required to study various
political policies. That can create issues while the launching of new products in market
(Murphy, Laczniak and Prothero, 2012). The taxation policies can also affects the
markets of Sainsbury's through various government policies. Customer may get a
negative impression because of the investigation going on price fixing as Sainsbury's is
listed in the top four retailers in UK. The UK Government is to reduce corporation tax
rates from 30% to 28%, which will help Sainsbury's, to save large amount of money
(Sainsbury's, 2016). Political risk factor is also one of the factor which can affect the
Sainsbury's market domestically and globally where it is operating.
 Economic – Another factor to be considered is economic factor. Economic factors are
related to the changes taking place in the economies. Changes in economic growth
directly impact the demand of product. Before launching the product in market the
Sainsbury's is required to analyze various economic factors. One is recession period in
which the purchasing power of the consumers are low and they try to avoid to buy
expensive things (Cox, 2016). This will affects the profitability of Sainsbury's. Although
the UK economy was declared officially under recession, the government’s substantial
reduction in interest rates helped to minimize further rises in unemployment.
 Social- Social factors are related to the beliefs and values of the customers and society
whereby the business is operating. Changes in the values may affect the demand of new
product of Sainsbury's. Here, the chosen company has to analyze the customers
expectations and try to make the products and services accordingly to their needs and
requirements. So that they gets fully satisfied from the desired product of Sainsbury's.
(Gresham and Fontenot, 2015). For example, in some countries pork and wine are
prohibited so the Sainsbury's has to make the arrangements accordingly to meet their
customers' expectations.
 Technological- Advancement of technologies helps the firm in attaining competitive
advantage over its competitors in the current market. To attain competitive advantage the
company has to retain advance technologies in its operational departments (Maphorisa
and Jain, 2013). This will help it in increase of productivity as well as will lead to
accuracy. For example, Sainsbury's is using self checkout machines which assists in

increasing customer loyalty as they don't have to wait in long queues sometimes for very
few products.
 Environmental – Environmental factors are one of the key issues these days. Every
company has to ensure that they contribute in reducing carbon footprint and to increase
energy efficiency which means big companies like Sainsbury's would have to invest more
money to sort out Green issues (Madsen and et. al., 2015). With the growing ethical
issues such as selling organic foods and treating animals in a good way may have impacts
on the business of Sainsbury's because they would have to retain their customers
 Legal- This is important aspect to be considered by the Sainsbury's while launching its
new product into the market. Legal factors are related to the various acts and imposition
by the local and national authorities such as Health and Safety Act. For example,
Sainsbury's has to follow these rules and regulations so that they able to maintain
safeguard of their employees. which Sainsbury's has to ensure all the time in its premises
(Abishovna, 2014). Moreover, Sainsbury's is required to produce the products (especially
its new products like Naked Coconut Water) while keeping in mid the health factors of
the customers. The company has to apply various law such as Employment Law in
organization so that the business can runs successfully and legally.
2.2 Proposing a segmenting criteria for products in different markets
There can be various segmenting criteria which can be used by the Sainsbury in different
markets. Such as:
 Behavioral Segmentation- In this market segment different buyers have different
behaviors. For entering in new market of for launching new product in the market. The
Sainsbury's will have to study various behaviors of buyers. Some common used behavior
are Occasions in which groups individuals according to the occasions when they
purchase, use or think of buying a product. Second is Benefits Sought in that groups
individuals according to the benefits they seek from the product. (Dincer and Dincer,
2014). This will further help it in promotional strategies as well as will also get to know
about different segments.
 Benefit Segmentation- Benefiting segmentation can be defined as the market are divided
on the basis of value, benefit or advantage of the consumers in receiving the products and

services. So this segmenting criteria helps in knowing that the all buyers are looking for
the products from which they can gets benefited. (Endraswati and Wahyuni, 2015).
 Demographic Segmentation- In this segmentation criteria the Sainsbury firm will have
to set target of market on the basis of age, sex, family size etc. For example- the
Sainsbury retail firm will have to launch its coconut water on the basis of the age through
etc. Sainsbury's has targeted the age group between the 12 to 19 years because they are
more attracted towards this drink which Sainsbury's is offering to its desired customers
(Kotler, 2012).
 Geographical Segmentation- here the chosen retail firm will have to select segment on
the basis of state, region, nationality etc. This helps in achieving knowledge that how the
customers of different nationality will represent its product (Omari and Elkandoussi,
2013). The region which is mostly dry or have less water (that people) are to be
segmented. Psycho-graphic Segmentation- In this the Sainsbury's is required to select its customers
based on their status, lifestyles etc. Here according to the lifestyles customers are
targeted. Such as health conscious people who gets more attracted to this naked Coconut
water (Kengthon, 2011).
Benefits of Segmentation:
The certain benefits of segmentation is that it helps in focusing of the company's
segments, increase in competitiveness, market segmentation, customer retention, have a better
communication and lastly helps in profitability.
2.3 Selecting a targeting strategy for selected product-services
After the selection of appropriate segmenting strategy another step of Sainsbury's plc is to
select a proper targeting strategy. Differentiated marketing strategy is required to be selected by
the Sainsbury pls for the promotion of its Naked Coconut water product. Various targeting
strategies are as follows:
 Undifferentiated Marketing- Undifferentiated marketing is the mass marketing where
the firm does not target a particular segment. Instead of that its goes with one marketing
strategy for as many people possible (Brown, McDonagh and Shultz, 2012). For
Example- The Sainsbury's while opting undifferentiated marketing will have to prepare a

simple marketing strategy for all people instead of going for multiple number of
strategies for different market. It will go on applying single strategy on whole market.
 Differentiated Marketing– It can be defined as a sales growth strategy in which several
market niches or population segments are targeted with different products for each niche
or segment. In this the firm goes with different marketing strategies to promote its single
product. Example can be taken to make it clear cut for instance to promote its new
product that is Naked coconut water (Durkin, McKenna and Cummins, 2012).
Sainsbury's plc will have to go through various marketing strategies. For example, it will
have to prepare different strategy in case of promoting its coconut water among children
etc.
 Concentrate Marketing- In this the firm has main focus on the one particular segment.
But it does not totally ignore other segments of market. For example- for the promotion
of Naked Coconut Water, Sainsbury's will have to focus on single targets that is for
children And may reduce its prices for particular sector or may add a toy with its to
attract small kids (Chua and Banerjee, 2013). On the other hand, Sainsbury will not
totally ignore its other segments of adults, teenagers etc.
2.4 Demonstrating how buyer behavior affects the marketing activities in different buying
situations
The consumer buying process is a complex matter as many internal and external factors
have an impact on the buying decisions of consumers. There are different dimensions of the
consumers buyers which should be kept in mind while buying nay products and services.
Environment influences and personal variables and motivation are important aspect which can
influences the buyer's behavior (Home, 2015). In addition to this, there are some social features
which are to made accordingly to the customers' attitude and lifestyles because then only they
can purchase it.
Different buyers behave differently in different situation. Some of the buying situations are as
follows:
 Straight Re-buy- This buying situation is the easiest situation in which the buyer is
engage in the routine product. Here the buyer is purchasing its regular products without
any modification. Here the buyer is confident on the product and he does not want any

changes to be made. The buyer buys product with confidence as he has already purchased
the product earlier at some other point of time (Swar, 2013). These are the existing
products for which the company is not required to make efforts for its promotion. It is
already being liked by the buyers and they are purchasing the products regularly. Paper,
pen pencils can be some of the products which the buyer buyers without much thinking
of its utility. For example- Sainsbury's plc, is a retail shop have number of items in its
stores which does not require any promotion. There are some permanent customers who
purchase such product without any modification and changes in the product.
 Modified Re-buy- Here the buyer goes on purchasing the similar product that he has
earlier purchased. But it must be having some modification may be of flavor, brand,
packaging etc. The changes may also occur in product specification as well as in supplier
of the products (Milligan, Winch and Adams, 2012). Here in buying situation the buyer
implies more efforts in purchasing item in comparison of straight re buying.
 New task- It is a buying situation in which the buyer buys the product for the first time. It
takes lot of efforts while making a buying decision to the buyer. In this the buyer
purchases product after considering and evaluating various factors.
2.5 proposing new positioning for a selected product/service
The marketing strategy which focuses on their brand value to stand high in the market
from other competing brands is known as positioning. There are number of positioning strategies
that can be selected by Sainsbury's for the promotion of its new product into the market.
Strategies are as follows:
 Pricing as a positioning strategy- In this the Sainsbury's will have to go through quality
approach or positioning by the price quality. Generally it is the perception of customers
that lower price product has poor quality In respect of the higher price product. In order
to increase the brand values of product the Sainsbury's can launch its product with higher
prices (Pecić and Kolarević, 2014). This will lead in the increase of its products brand
value.
 Customer Benefits as a positioning strategy- In this the Sainsbury's will have to
produce product on the benefits of customers. It is required to concentrate on the
durability, reliability etc of product (Singhapakdi and et.al., 2013). This will help in

attracting customers to the product of Sainsbury's and will also help in sustaining
competitive advantage.
 Positioning Strategy based on the competitor- In this the chosen retailer organization
will have to use positioning strategies either same of its competitors (Rainey, 2014). Also
may create develop new while keeping in mind its rivals strategies.
Sainsbury's in order to promote its naked coconut water, it should go for customer
benefits as a positioning strategy (Hastings and de Andrade, 2016). This will help in increasing
the customers base of the firm as well as it will further help in adding new members to the
company. This will help in increasing the revenue generation of the firm. Also this will lead to
increase in the customers’ loyalty.
LO3
3.1 Explaining how products are developed to sustain competitive advantage
In order to sustain competitive advantage the company is required to maintain & produce
products according to the needs and preferences of customers. Firstly, the company is required to
identified the customers perceptions and expectations towards product through surveys etc. This
will help it in knowing the actual needs of the buyers and will price accordingly to sustain
competitive advantage over its rivals (Ashturkar and Shakil, 2015). When a company produces
its products as per customers tastes, preferences and lifestyles, the customers will definitely get
attracted towards the company's product. Firstly the Sainsbury plc is required to produce
products as per analyzed needs and demands of its customers to earn their confidence and
increase companies customer base. Increase in customer base will further help the company in
sustaining competitive advantage over its rivals in the market. For example- Sainsbury's should
analyze various product range of its rivals that is TESCO (Cornwell, 2013). Also it will help in
understanding various lacking of TESCO. After analyze various weaknesses of its rivals the
Sainsbury's will have to grab it like an opportunity and make all the lacks of TESCO as its firm
strength. This will help in attracting the various customers of TESCO towards the Sainsbury's.
Another thing in which it has to take care is the reliability, quality of product ( Catterall,
Maclaran and Stevens, 2013). Also to increase the revenue the firm can even lower down its
price that its rival TESCO. This will also help it in attaining the competitive advantage over its
competitors in the market. The chosen company should make Naked Coconut water as the

unique product through which Sainsbury's can gets competitive advantage. As this is an coconut
water which mainly focus on the people who are health conscious and teenager. This is because
it is the drink for those who don't prefer the other carbonated drinks (Gresham and Fontenot,
2012). Moreover, it is a new product which is in initial stage and trying to capture the more
market globally through which its sales and profitability gets increased.
3.2 Explaining how distribution is arranged to provide customer convenience
Sainsbury's will have to go through various distribution strategies for its Naked Coconut
Water to provide convenience to customers. Sainsbury's is going to place its product in its
different stores and purchasing that product. There are four types of marketing intermediaries
nad that are agents, wholesalers, distributors and retailers (Belgium, 2014). The agent as a
marketing intermediary is an independent individual or company whose main function is to act
as the primary selling arm of the producer and represent the producer to users. he wholesalers
own the products they sell. Wholesalers purchase product in bulk and store it until they can resell
it. Wholesalers will carry a variety of competing products, for instance Pepsi and Coke products,
whereas distributors only carry complementary product lines, either Pepsi or Coke products.
Retailers can be independently owned and operated, like small “mom and pop” stores, or they
can be part of a large chain, like Sainsbury's. So the chosen company can best suited for the retail
company where they can directly connect to their customers. The retailer will sell the products it
has purchased directly to the end user for a profit (Shabelnyk, 2014). Sainsbury's can also go
with the detailed and attractive packaging of Naked Coconut Water. It will help it in attracting
more and more customers. It can distribute coconut water in its Sainsbury's supermarkets etc
markets.
3.3 Prices are set to reflect an Sainsbury's objectives and market conditions
Due to intense competition the Sainsbury's is required to set the appealing prices for the
goods & services its providing. There are various pricing strategy which organization can use in
achieving the goals and objectives. The different types pricing strategies are as follows: Premium Pricing: This is all about the strategy which establishes a higher price of the
product than their rivals. This is used because there is something unique about the

product and when it come first in the market, it is used as competitive advantage
(Endraswati and Wahyuni, 2015). Penetration Pricing: This strategy is designed to attract large number of customers by
offering the product and services at low price. Economy Pricing: In this, organizations take a very basic low cost approach to marketing
in which they attract a specific segment of the market which is very price sensitive. Price Skimming: The company which constitutes competitive advantage with the price
skimming strategy are designed to gain maximum revenue advantage before rivals has
offered that similar products and services (Ahmed, 2015).
 Psychological Pricing: it is commonly used marketing strategy which is commonly used
by the marketers in the prices for their products. For example, £99 is psychologically less
by the consumers' perspectives than £100. It's a minor distinction which can make a big
difference.
Premium pricing strategy will be used for the Sainsbury's new product that is Naked
Coconut Water. This is because , this product has some uniqueness and can be used as
competitive advantage. As the product is targeting health conscious people so for the health, the
customers will be readily to buy this product without considering the prices (Babin and
Zikmund, 2015). Here, the quality matters not the price of the product for the customers.
This is one of the important aspects of the marketing mix which reflects the aims and
objectives of the chosen organization. Price plays a significant role in Sainsbury's in order to
maintain and to enhance the product's demand of the Sainsbury's. Here, the price elasticity shows
that PED > 1 which means product tends to elastic in nature (Brown, McDonagh and Shultz,
2012). This also means that small change in the price can bring huge change in quantity
demanded by the customers. Customers attitudes and perceptions also affect the pricing decision
of the product because in the competitive market the pricing of the products influences the
mindset of the customers (Burnaz and Bilgin, 2011). This because every customer has the
different budget and according to that only it buys the products and services. On the other hand,
if other competitors are charging the lower prices with quality product then customers will
automatically switch. However, if the customers' are brand loyal then they will buy same
products with high prices also. The price of the products should be reasonable because it will

helps in enhancing the customer satisfaction or profitability. Sainsbury's main objective is to
provide customer satisfaction as well as profitability. So the company is proving the high quality
products with high prices so to stand high with their loyal customers. But in time of recession
period, the company has to provide prices with the market conditions. This because the
customers were not economically sound and unable purchase the products above the range of the
budget (Griffith and et. al., 2014). As the Sainsbury's customers are loyal but they want the good
quality products without conscious about the price. Hence, the customers of Sainsbury is quality
conscious more than price conscious.
3.4 How promotional activity is integrated to achieve marketing objectives
Promotional activity is the important aspect in the marketing mix. This helps in
enhancing the profitability and attract large number of customers. There are several types of the
promotions activities which will helps the Sainsbury's to achieve the marketing objectives. The
promotional activities helps in the creating an awareness and do effective communication
between the management and customers to buy the products. The promotional tool also assists in
influencing the target market to purchase their products (Hartline and Ferrell, 2010). In
promotional tool, advertising plays an important aspect in the organization. Advertising of the
products can be done through various mediums such as TV campaign, social media like
Facebook, twitter, and social websites like internet and online marketing. The other medium is
print media which constitutes newspapers, magazines, posters, pamphlets etc. These all mediums
enhance the way through which the message, value and information of the product is conveyed
to the public and which further helps to reach more target market. The next promotional tool is
public relations and sales promotion in which the Sainsbury's will build relations with public on
the basis of providing the vouchers, discount coupons, sponsorship etc. to their loyal customers
and new ones to attract them. Through this large number of the customers get attracted and will
increase the revenue of the organization.
Though, it needs large investment but it is fruitful because it will provide Sainsbury's the
more revenues (Kengthon, 2011). This promotion can be done through branding, if customers are
brand loyal then they will buy the products without any differences in the price. In addition to
this, the personal selling and direct marketing is significant tool in the promotional activities. If
the company is providing good environment in the retail stores then customers will visit again

and again. In the personal selling, customers will know about the organization objectives and
will try to make direct contact with the customers and build relations with them to purchase more
products from Sainsbury's. There are different promotional tools which are carried out by the
Sainsbury's are Nectar loyalty card in which customers gain 1 point in respect to the 2 pounds
(Sainsbury's, 2016). The other vouchers schemes which is introduced is for the customers is
Sainsbury's Active kids and the company is brand ambassadors of many social activities.
Moreover the company has different slogans which are an eye catching and attracting large
number of customers.
There are some promotional concept such as push versus pull strategies and integrated
communication process. In push versus pull strategies, a pull strategy can be defined as
promoting the products through the distribution channel in which more customers will gets
attracted. Moreover, push strategies will emphasis on personal selling. Whereas, pull strategy
referred as the the promotion of the products done for the customers directly so this will helps in
creating a demand by asking for the newly promoted product (Burnaz and Bilgin, 2011).
Furthermore, push strategies emphasis on mass advertising. By comparing these both strategies,
pull strategies is best suited for the Sainsbury's chosen product. This is because it is directly
targeting the customers without any consideration of the middleman. Through this, more
customers will be gets attracted.
In addition to this, the other concept is integrated communication which brings ideas
together in the strategic and tactical arena for marketing communications. In first element that is
situation, in which current position of the firm will be evaluated in that its resources, product
range will be measured to know the financial position of the Sainsbury's. In second element, the
firm's main objective is to enhance the sales of the company (Chua and Banerjee, 2013). Third
element is strategy in which it makes strategies, to attract large number of customers and to
increase their profitability. In fourth element, various types tactics and plans will be made to
achieved the objectives and goals of Naked coconut water. Moreover, in fifth element, it is about
the target which company are targeting to attract their desired customers. For this product, health
conscious people are main target of the Sainsbury's. In sixth element, there should be effective
qualified workforce should be their to main the communication effective. In seventh element, the
budget are to be set for coconut water in promoting, selling and other aspects. In eighth element,

it is about the deadlines in which they are given to the employees at the time of allotting the task
(Hastings and de Andrade, 2016). Last element is measurement in which it is all about the
monitoring and evaluating the desired results. The whole process are to be checked and then
rectified so that there should be an effective communication.
3.5 Analyse the additional elements of the extended marketing mix
There are additional elements in the extended marketing mix and they are people,
physical evidence and process management. These three new P's invented by Booms and Bitner
in the early 80s, were people, physical evidence, and process, thus completing the extended
marketing mix. The four marketing mix is all about the marketing the product but the other
extended marketing principles helps in marketing the services. The three marketing mix are as
given below: People: The sales person or the attended in the organization shows the objectives and the
image of the Sainsbury's. So the employees of the company should be skilled and talented
to attend the customers (7 P's of marketing mix, 2015). So for this, firm should recruit
and select effective employees with good experiences as well as the trained the retain
employees so they serve and interact well with customers. Physical evidence: The stores, retail outlets and the supermarkets are the format or
physical evidence which also plays important role in attracting the customers. The
Sainsbury's should concentrate on the surroundings which attracts the customers (Urde
and Koch, 2014). And to sell the products, the layout should be easy to navigate; the
presentation of the products and place should be effective and eye catching.
 Process Management: This aspects deal with the customers' service and its satisfaction
factor, and firm's ability to offer the services and handle the complaints and identify the
problems how to tackled them (Service Marketing Mix (Extended Marketing Mix), 2015).
In this aspect, customers' loyalty is to be needed to handle the any types of the issues
which the chosen organization is facing.

LO4
4.1 Plan marketing mixes for two different segments in consumer markets
The two different types of segments in consumer markets are demographic and
psychographic segmentation in which marketing mixes are to be done and they are as follows: Demographic segmentation: This segmentation is all about the age groups and on the
basis of this, the Sainsbury's can segmented the groups to offer their products and
services. As it is the healthy drink product, which can be perceive by all age groups. This
product is able to attract health conscious people more and the old age people. This can
be distributed in the pouch form to their customers and for this Sainsbury should sell
them from their outlets and can be stored at the warehouses in bulk and can be used later.
The prices of the product should be set according to the customers' mindsets so that it can
easily gets attracted and purchase the stated products. There are various aspects and
mediums through which the Naked Coconut Water can be promoted (Budeva and
Mullen, 2014). Supermarkets is also one of the medium to attract large number of
customers. For example, to promote this product or to reach to the large target market, the
chosen company can offer this stated product as the complementary goods to the
customers.
 Psychographic segmentation: In this segment, customers purchase their goods and
services according their attitudes and lifestyles. As the more of the people are diet
conscious so they prefer this product because this product come under hygienic category.
The product is all about the coconut water which is made according to the tastes,
preferences and lifestyles of the customers to able to meet their expectation (Kolassa and
et.al., 2012). The price does not matter for the stated customers because they prefer
quality more than price. But to attract other customers, the prices should be reasonable.
This product can be placed at nearer retail outlets and in the malls to attract professionals,
children and adults to purchase it. This can be advertised through giving pamphlets as
well as on social media by online marketing and internet.

4.2 Illustrate differences in marketing products and services to businesses rather than consumers
To market the products and services to business and consumers, there are several
differences and they are as follows: Business to business (B2B): In this, the relationship between these two is business driven
and the business enterprise will buy the products in bulk from Sainsbury. For Example, if
any restaurant wants to buy coconut water then it will not take two or three packets
whereas it will take in bulk the units for their customers. Here, the advertising are not that
needed because the restaurant have faith on the company then it will buy from them
(Kramer, 2014). In this, the communication will take place either virtually by video
conferencing or by meeting to know the products and then deal will be fixed. If BB is
taking place the will educational and awareness activities will be done by the both
organization. The other promotional activities which promote its products to the
restaurant can be done by the media such as telemarketing, web casts, newsletters etc.
 Business to Consumers (B2C): In this, Sainsbury's has to satisfy their customers so that
they get satisfied then will buy many more products from the supermarkets. The
customers can't able to buy products in bulk so that the company can't get profits in a
whole. In this aspect, marketing activities plays an important role in gathering large
number of customers. For instance, the promotional activities can be advertising through
TV campaign, social media and online marketing, print and electronic media (Madsen,
and et. al., 2015). The buying behaviour of the customers will be based on tastes,
preferences and lifestyles. Sainsbury's should to satisfy their customers and achieved
their confidence through meeting customers' expectations. The combining of the two
more company also enhance the brand loyalty. The brand identity of tjhe4 products
should be effective because customers gets attracted by only company' reputation and its
image.
4.3 How and why international marketing differs from domestic marketing
The domestic marketing is done in the domestic boundary i.e. United kingdom. On the
other hand, the international marketing is done for the other countries. The differences between
these two marketing are given below:

 Domestic Marketing: It is refers to the marketing done within the geographical nation
which includes production, promotion, advertising and selling etc. But it limits its
expansion within the country only and through this business can't able to get an
expansion (Shiels and et. al., 2013). This marketing caters a number of benefits such as
access data, less communication barriers between the customers, better knowledge about
consumer demand and its expectations, tastes and preferences, information about market
trends, less competition, one set of economic, social & political issues, etc. this because
Sainsbury's better known to UK laws and regulations and the EU regulatory framework
than other countries.
 International Marketing: This business is done internationally and has the platform to
showcase their ideas and creativity to the world as well as have the opportunity to expand
the business globally. However, the company should be acceptable to the regulatory
framework in which they operate (Differences between International Marketing and
Domestic Marketing, 2016). It is difficult to Sainsbury's to keep focus on the worldwide
customers. International marketing needs huge capital investment to acquire resources
globally. Some other challenges are socio cultural differences, changes in foreign
currency, language barriers, differences in buying habits of customers, setting and
international price for the product etc. For instance, there are socio cultural differences in
two different countries such as Saudi Arabia and in London. In Saudi Arabia, people
prefer the halal non vegetarian but this not applicable in London. Another example can be
on buying habits of customers (Belgium, 2014). In India, people mostly prefer low cost
product with good quality. Whereas, in London, people focuses on more on quality then
on price. In other words, Indian is a price conscious and British is quality conscious
people.
CONCLUSION
In this report, it has been concluded that the marketing concept and process of marketing
evaluated the Sainsbury's should meet the customer’s needs and satisfaction. Through this, they
will able to meet their expectation and make them satisfied. To analyze the marketing audit,
SWOT and PESTLE analysis has been done to know the market environment, its rivals as well

as new opportunities. Moreover, the segmentation, targeting and positioning have been done for
the coconut water to identify and attract large number of customers. In addition to this,
marketing mix that is extended one are explained which helps in marketing the products and
services of the particular product of Sainsbury's. Furthermore, the two different segmentation are
discussed keeping Sainsbury's product in considerations. Moreover, it shows the difference
between two markets that is international and domestic as well as marketing products and
services to businesses rather than consumers have been distinguished.
RECOMMENDATIONS
The recommendations for Sainsbury's regarding for 4Ps are as follows:
 Naked coconut water should has the great features such as attracting and catchy slogans,
good packaging and with reasonable prices so that more customers gets attracted.
 Sainsbury's has to organized the domestic and international campaigns through this more
customers will gets attracted towards the selected product (Swar, 2013).
 The chosen company should used effective promotional strategies so that many
consumers gets attracted top the selected coconut drink.

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