Crafting Strategies to Earn High Profits with Satisfying Final Users

EasyJet, an airline company, must adapt its product and services to fit the cultural norms of people in different countries due to differences in culture, language, and lifestyle. Research plays a crucial role in international marketing as it helps to identify market trends and reduce risks associated with launching new products. Additionally, workforce availability is another challenge that companies face when operating internationally.

MARKETING PRINCIPLES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
AC 1.1 Discussing various elements of marketing process.........................................................1
AC 1.2 Elucidating the benefits and costs of marketing orientation...........................................2
AC 2.1 Assessing macro and micro environment with the help of appropriate tools and
techniques....................................................................................................................................2
AC 2.2 Suggesting segmentation criteria for the chosen product...............................................3
AC 2.3 Selecting a targeting strategy for the selected product....................................................4
AC 2.5 Positioning strategy to promote selected product...........................................................4
AC 2.4 Impact of buyer behavior on marketing activities in different buying situations...........4
AC 3.1 Ways of developing products and services to sustain competitive advantage................5
AC 3.2 Arranging distribution to provide customer convenience...............................................5
AC 3.3 Setting prices as per the marketing activities..................................................................5
AC 3.4 Integrating promotional activities for attaining marketing objectives............................6
AC 3.5 Supplementary elements of extended marketing mix.....................................................6
TASK 2............................................................................................................................................7
AC 4.1 Setting up of marketing mixes for two different segments in consumer markets...........7
AC 4.2 Explaining the differences between B2B and B2C with developing a marketing plan. .7
AC 4.3 Execution of a marketing strategy to market abroad with explaining the difference
between international marketing to domestic marketing.............................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
For promoting the products and services and to perform better in the market in
comparison to the competitors, it is important for a firm to give proper emphasis on its marketing
principles. These are the norms which organization needs to follow in order to work in an ethical
manner for running its operations successfully (Culliton, 2008). In the present report, there will
be focus on various elements of marketing process along with a detailed study on macro and
micro environment. For this purpose, the firm, EasyJet has been chosen that is one of the leading
airlines in United Kingdom. Along with that, report will highlight the segmentation and targeting
criteria for a product with its positioning strategy. In addition to this, there will be study on
concepts of B2B and B2C along with explaining the difference between domestic and
international marketing.
TASK 1
AC 1.1 Discussing various elements of marketing process
There are some specific elements of marketing process of EasyJet. These are explained in
the following ways:
Investigating: In the marketing process of EasyJet, it is the first step in which firm studies
the whole market through surveys or any other medium and then gathers and analyzes the
information.
Making strategy: After analyzing the gathered data, company gets to know about its
strengths and weaknesses. Accordingly, it prepares the strategy so that it would be able to beat
the competition (THE MARKETING PROCESS, 2004).
Formulating marketing program: Then the marketing planning department makes plan by
which set goal of the firm can be achieved. This plan involves activities like financial planning,
communication strategy, sales forecasting, etc.
Deciding tactics: After making a proper plan, then before executing it, tactics are decided
which are the short term plans in which activities to grab the attention of target market and to
enhance the level of sales are done (Bhasin, 2012).
Building relationships and creating value: Last but not the least; efforts have been made
by which relationship can be made stronger with customers by providing value to them for the
money that they have spent.
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AC 1.2 Elucidating the benefits and costs of marketing orientation
Some advantages and limitations of marketing orientation are there in EasyJet which are
described as below:
Constant improvement: Marketing orientation helps in driving constant improvement in
the processes and systems of company. It promotes a culture of experimentation in EasyJet with
respect to create innovation and modification in the products and services offered to customers.
Responsiveness: Firms with having market orientation generally gain the advantage of
loyalty of customers in the long run. It mainly focuses on the marketplace responsiveness by
which it not only produces goods and services as per the needs of customers but do it in timely
manner (Ardley, 2008).
External influences: Firms that have limited growth and high competition may have to
face the issue of fewer returns on the investment made by them on market orientation. Also, if
the technology used is ineffective, it may lead to loss for the firm.
High expenses: Marketing orientation always comes with high cost and investment made
in marketing research also lead high expenses because firms like EasyJet require accurate data to
respond in a corrective manner. Also, technology required to collect, analyze and use data will
incur high cost (Hedin, Hirvensalo and Vaarnas, 2011).
AC 2.1 Assessing macro and micro environment with the help of appropriate tools and
techniques
There are many marketing decisions which firm has to take. These decisions affect the
internal and external factors of organization. The internal factors exist in the micro environment
of firm and external factors exist in the macro environment. Stakeholder analysis and PEST
analysis are the techniques by which micro and macro environment of EasyJet can be understood
(McLeish, 2010). Both these tools are explained as below:
Stakeholder analysis includes:
Customers: Easy Jet provides high quality of products and services to its travelers along
with the high value.
Employees: Company provides a healthy working environment to its employees so that
they would be able to perform their tasks with highest level of efficiency.
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Government: In order to stay in the market with having sustainability, it is important for
EasyJet to follow all legal norms. Thus, firm is following all ethical codes of conduct and
operating with success (Winston and Mintu-Wimsatt, 2013).
Shareholders: Company is providing attractive dividends to its shareholders. It is helping
in retaining and making them investing their money again in the shares of EasyJet.
PEST analysis involves:
Political factors: In nations where EasyJet operates, there is political stability which is
helping it run the operations smoothly without having any interference of regulatory bodies.
Economical factors: Economic condition of UK and all those countries where EasyJet is
running its operations is sound. This is the reason; company is earning higher profits and
revenues.
Social factors: By fulfilling all corporate social responsibilities, this airline is serving the
society with quality products and services and protecting the interest of travelers and
environment (Ulph, 2011).
Technological factors: EasyJet uses latest technologies in all its flights and in providing
different services. This is the reason; it is gaining competitive advantage from other firms.
AC 2.2 Suggesting segmentation criteria for the chosen product
EasyJet wants to launch its new product for travelers, that is, healthy drink in the meal
which it provides in flights for families who are health conscious. For that purpose, they can
segregate the market into two segments on the basis of demographic and psychographic
segmentation. As per demographic segmentation, company can target people in between the age
of 50 to 70 years as they need healthy drinks instead of soft and hard drinks because of the issue
of their health. By serving this in flights, company can enhance their profits (Gregory and et.al.,
2005).
Another segment of EasyJet for the product, that is, healthy drinks is based on
psychographic segmentation. In this, people who desire to have healthy drink because of their
looks are selected. Company can select this segment and can make its product a big success as
people who are conscious about their looks generally want to have healthy drinks only instead of
any kind of soft and hard drink (Hartline and Ferrell, 2010).
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AC 2.3 Selecting a targeting strategy for the selected product
For the selected product, that is, healthy drink, EasyJet is targeting people in between the
age of 50 to 70 years because of their need of these drinks due to health issues and those who
want these drinks as they conscious about their looks. Thus, in order to grab this target market,
company can use concentration strategy in which firm will invest more resources in marketing
and production (Herrera, 2007). Rather, this strategy is generally adopted to show the product
difference from competitors otherwise; it would get failed. As no any other airline is offering this
product in flights, EasyJet can launch its product and will achieve great heights and profits with
the help of this. However, if differentiation will not be there, risk of significant loss may
increase.
AC 2.5 Positioning strategy to promote selected product
Numerous options are available by which positioning of the product, healthy drink, in
flights of EasyJet can be done. However, to select the best strategy is important as if the medium
of promoting product will not be appropriate; it would lead to heavy losses that firm will have to
bear. Thus, before implementing any positioning strategy, to make proper analysis is important
that whether the strategy would prove to be successful in grabbing the attention of target
customers or not or will lead losses to the firm (Bhasin, 2010). In case of EasyJet, promotional
tool of advertising would prove to be the best as through this medium, company can capture the
attention of people at a large scale at a single point of time. However, advertising agencies
charge a high amount from the firm but firms like EasyJet can afford it. Along with that,
advertising saves a lot of time of the firm in promoting product than any other medium (Ferdous
and Hossain, 2011).
AC 2.4 Impact of buyer behavior on marketing activities in different buying situations
As EasyJet is launching its new product, that is, healthy drinks, it has targeted travelers in
between the age of 50 to 70 years who require this drink because of their health issues which do
not allow them to have any other soft or hard drink. Also, company has targeted those people
who are conscious about their health and want healthy drinks to make their skin healthy instead
of having any other food served in the flights (Nwokah, 2009). This is the reason; EasyJet is
providing this facility to the travelers so that they would not have any issue in consuming the
meal served in flights and will feel satisfied with the offered services. Apart from that, it gives
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them the feeling of cared and respected as their needs are taken into consideration by the
organization which ultimately increases its goodwill and brand loyalty. Thus, by providing this
product and service to the travelers, company can gain higher profits and satisfaction of people
with making little efforts (Valdani and Arbore, 2013).
AC 3.1 Ways of developing products and services to sustain competitive advantage
In order to sustain in the market in the long run with gaining competitive advantage,
EasyJet will adopt the market growth strategy of ansoff matrix so that firm can grow at a fast
pace. For the purpose of increasing scope of business, company can adopt this strategy and can
make the firm stay in market for longer duration. In ansoff matrix, organization can use product
development and diversification strategies by which it can make modification in the product by
putting some new features in it (Vargo and Lusch, 2004). Along with that, to retain the existing
customers, penetration and development of market strategy can be used by EasyJet. In these
strategies, attention of existing customer base can be grabbed by modifying the product or
service as per the need of travelers.
AC 3.2 Arranging distribution to provide customer convenience
At the time when complete process of providing healthy drink to the travelers of EasyJet
is over, main task is to make it available to the final user for whom the product has been made. It
is important for the staff present in flights of EasyJet to make the healthy drinks available with
the people as and when they want (Banerjee, 2009). When promotion has been made and people
become aware with the product that company is going to provide, firm should not make any
delay as it may lead to heavy losses in terms that competitors can copy their strategy and
competitive advantage of EasyJet would be lost. This is the reason, to make the target market
stay with the firm, it is necessary to provide the product at the time when people desire. In short,
it can be said that, to consider customer convenience matters a lot to make the product
successful.
AC 3.3 Setting prices as per the marketing activities
There are a lot of pricing strategies that are present in the market which EasyJet can use
to set the prices of products and services along with the aim to cover its cost and earning higher
profits. These pricing strategies are like value pricing, competitive pricing and cost based
pricing. Among them, competitive pricing would prove to be the best for EasyJet as it is having
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many competitors like British Airways, Ryanair airlines, Virgin Atlantics, etc. Thus, to set the
price in accordance with what these airline firms are providing is necessary as if in case, there
will be high difference in between the prices of products and services offered by EasyJet in
comparison to its competitors, organization may have to face huge loss of switch over of target
market customers to competitor firms (Brooks and Simkin, 2012). Therefore, by adopting this
pricing strategy, prices of products and services can be set by Easyjet.
AC 3.4 Integrating promotional activities for attaining marketing objectives
Every firm desires to earn higher profits and revenues along with the aim to increase the
sale of products and services with providing high level of customer satisfaction. In order to gain
all these advantages, firm needs to adopt the promotional activity of advertising as it is the most
common method of grabbing attention of people in shortest duration. However, it incurs a high
cost, but capturing the attention of target customers at the fastest pace is only possible by this
way (Culliton, 2008). There are many other promotional activities by which marketing objectives
of EasyJet can be achieved. But, advertising is the best among them as in few minutes, maximum
information about the product can be given. Thus, to achieve the marketing objectives in the
most efficient and effective manner, EasyJet should use promotional activity of advertising.
AC 3.5 Supplementary elements of extended marketing mix
Along with four P’s of marketing, additional elements of extended marketing mix are
also there, that is, people, process and physical evidence. They are explained as below:
People: People here refer to employees and customers of the organization. EasyJet
provides a healthy and positive environment to employees so that they would provide services to
the final users in an efficient manner by working willingly. It will ultimately lead to satisfaction
of them as well as of the customers (Ardley, 2008).
Process: EasyJet put due emphasis on the activities of employees in order to monitor the
operations for checking whether the activities are carried out in pre-determined manner or not. In
order to make the process effectual, company performs all its activities in an ethical manner and
solves the customer grievances in an effective way.
Physical evidence: It means the interior and exterior decoration of company which helps
in keeping the employees willing to work and in attracting customers as well (Hedin, Hirvensalo
and Vaarnas, 2011). By having good infrastructure, employees would feel happy to work there
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and customers also make perception of the quality of products and services offered by the firm
that is having good infrastructure.
TASK 2
AC 4.1 Setting up of marketing mixes for two different segments in consumer markets
Marketing mix for two different segments in consumer markets are like EasyJet provides
high quality products and services to both the segments, that is, on the basis of demographic and
psychographic segmentation. Along with that, prices charged from both the segments are quite
high as EasyJet is an expensive airline in itself because of superior services that it provides
(McLeish, 2010). In addition to this, the newly launched product, healthy drinks, is served in its
business class flights. It is for both the segments as people who want these kinds of services
generally travel in business class flights only. Apart from that, last but not the least; the fourth
“P” of marketing mix, that is promotion, EasyJet is using the promotional tool of advertising for
the selected segments (Winston and Mintu-Wimsatt, 2013). Through this marketing mix, firm is
gaining higher profits and it proves to be very helpful in making the organization stay in the long
run with sustainability.
AC 4.2 Explaining the differences between B2B and B2C with developing a marketing plan
For doing marketing activities in business to consumer (B2C) market, EasyJet needs to
survey the latest trends present in the marketplace along with assessing the needs of customers.
In accordance with that, company is required to make strategies and need to plan its activities
that it has to carry out for fulfilling the needs of target market and to retain them (Ulph, 2011). In
this kind of marketing, firm will need to set the price as per the competitor’s pricing strategy as
well as it is also required to identify the technologies used by other airlines so that measures can
be taken in order to beat the competition.
On the other hand, in business to business transactions, all aspects are different because
in this EasyJet needs to deal with other firms who are the suppliers instead of dealing with the
final users. In B2B marketing, organization investigates the entire market and then makes
decisions accordingly. Under this, it sets the prices according to the trends prevailing in the
present market (Gregory and et.al., 2005). Here, very high expenses on promotion need not to be
invested and firms contact with each other on direct basis without having involvement of any
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third party. However, it can be said that in business to business marketing, healthy relations
between firms is required.
AC 4.3 Execution of a marketing strategy to market abroad with explaining the difference
between international marketing to domestic marketing
For the execution of marketing strategy of EasyJet in domestic and international
marketing, many differences are there that have to be assessed. In domestic marketing,
organization need to sell its products and offer its services to the customers within local market,
that is, the travels of same nation. Here, culture is uniform with which firm is well aware. Thus,
issue of conflict based on culture, language and workforce availability do not arise and
operations are smoothly carried out (Hartline and Ferrell, 2010). Along with that, in domestic
marketing, both micro and macro factors are considered to assess the internal and external
environment of firm so as to mould strategies accordingly to earn high profits with satisfying the
final users.
In international marketing, things are quite different as in other nations, culture, language
and lifestyle of people are different because of which EasyJet is required to change its product
and services and need to make it as per the cultural norms of people which allow them to avail
the services provided by company (Herrera, 2007). Along with that, research plays a significant
role in international marketing as without having proper study of the market; to launch a new
product in any other nation involves high level of risk which can lead the firm to bear huge
losses. Workforce availability issue is also a common problem in international marketing.
CONCLUSION
It can be inferred from the above report that marketing principles influence a firm to a
very high extent as the success of business depends on it. It can be concluded from the report that
if a company wants to make its product or service successful with gaining higher profits and
revenue, following marketing principles is necessary. Report shows that segmentation, targeting
and positioning strategies are also helpful in generating profits for firm as if they are done in a
proper manner, it leads to capture large market and thus, the profits are also high.
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REFERENCES
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Winston, W. and Mintu-Wimsatt, A., 2013. Environmental Marketing: Strategies, Practice,
Theory, and Research. Routledge.
Ulph, C., 2011. Marketing Strategies Used by Intel to Create a Sustainable Market Position.
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Gregory, G. and et.al., 2005. Strategic Management. 2 ed. New York: McGraw-Hill Irwin.
Hartline, D. M. and Ferrell, C. O., 2010. Marketing Strategy. 5th ed. Cengage Learning.
Herrera, B. G., 2007. Customers' psychological needs in different service industries. Journal of
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Valdani, E. and Arbore, A., 2013. Competitive Strategies: Managing the Present, Imagining the
Future. Palgrave Macmillan.
Vargo, S. L. and Lusch, R.F., 2004. The Four Service Marketing Myths: Remnants of a Goods-
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Banerjee, S., 2009. Effect of product category on promotional choice: comparative study of
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Brooks, N. and Simkin, L., 2012. Judging marketing mix effectiveness. Marketing Intelligence &
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Culliton, J., 2008. The Management of Marketing Cost. Harvard.
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