Marketing Mix and Its Effects on Business

The given report is based on the principles of marketing and provides an understanding of how marketing affects business organizations like Emirates and British Airways. It discusses the importance of data extracted from market research in preparing business plans and introducing new products through the marketing mix.

Introduction to
Marketing

Table of Contents
TASK 1.....................................................................................................................................................................4
P1.How marketing techniques such as growth strategies (Ansoff’s Matrix); survival strategies; branding and
relationship marketing are used to market products in Emirates and British Airways.......................................4
P2.Describe with suitable examples the limitations and constraints of marketing with reference to legal
requirements........................................................................................................................................................5
TASK 2.....................................................................................................................................................................7
P3. Describe how one of the selected organisations uses marketing research such as qualitative; quantitative;
primary internal/external research; and secondary internal/ external research to contribute to the development
of its marketing plan...........................................................................................................................................7
Secondary Data:.......................................................................................................................................8
P4. Describe how the same organisation mentioned above, utilises data and information collected through
marketing research for marketing planning........................................................................................................8
TASK 3.....................................................................................................................................................................8
P5. Explain how and why groups of customers are targeted for selected products. ..........................................8
TASK 4...................................................................................................................................................................10
P6. Develop a coherent marketing mix for a new product or service...............................................................10
CONCLUSION......................................................................................................................................................11
REFERENCES.......................................................................................................................................................11

INTRODUCTION
Marketing is a important function in all businesses and organizations, and is becoming
increasingly crucial to success in our modern global economy. This report deals with the
concepts and tools of marketing. This include Market Research & its importance to strategy
planning and how the organisation use marketing mix. As a Junior Marketing Consultant for
professional organisation for marketers it is duty to provide report on two business
organisation that is Emirates and British Airways which are two profit making public and
private owned companies respectively (Palmer, 2012). Both these organisations are airlines
and holds a big share in this sector. By taking these two airlines in context we will go through
some important aspects of marketing.
TASK 1
P1.How marketing techniques such as growth strategies (Ansoff’s Matrix); survival
strategies; branding and relationship marketing are used to market products in Emirates
and British Airways.
Marketing is the process of finding out what the target audience want and this can be
find out through carrying out market research. For example; using primary and secondary
research, PESTEL, market trends. By doing this marketing will be able to promote products
to their target audience by meeting their customer's needs (Armstrong and et. al., 2012).
There are various growth strategies which a company can adopt to get success. Some of the
growth strategies are as follows:-
Ansoff's Matrix:
This model describe the strategies available for growing a business and tells that businesses
try to grow depending on its markets new or existing in new or existing markets. This is used
by the companies top decide on their product and how they are going to expand. Both airlines
can identify four categories for growth.
 Existing Market
Market Penetration- British airways airlines can use strategy by bringing new services that
can suit all ages. They can do special offers and low fare rates and on the other hand Emirates
can come up with strategy of merging with the small airlines in UK market. Another example
is that Emirates can provide gifts to their passengers on Christmas season.

Product Development- Product development is when some introduce a variety of
product in the market. For example; Emirates will give their passengers the advantage of
travelling with them on their flight by giving them free holidays package and British airways
can also introduce some products which will be useful for the passenger (Proctor, 2014).
 New Market
Market Development:- Market development is when they target a new audience but with the
existing product. Emirates can introduce their flights in the small cities of UK which will
expand their market. British airways use market development with their services by entering
a new market by introducing services for older people.
Diversification:- Emirates have decided to introduce new flights which will fly to those cities
which has seven wonders of the world and British Airways has brought a new range of flights
which will set new standards of luxury.
Branding:
It is the identity which separates both the airlines from one other and their competitors. Both
the airlines have to stick with their branding agenda because changing the brand logo, sign
and name would make its image blur (Skålén and Hackley, 2011). British airways logo
signifies the colours which is present in the flag of England.

Relationship marketing is the process on which airlines industry is totally dependent upon, so
both the organisation have to built a image in the minds of people by building a relationship
with them. For this they can have to satisfy the passengers with their services and hospitality.
P2.Describe with suitable examples the limitations and constraints of marketing with
reference to legal requirements.
When someone buy a product or service, there are laws which have been created to protect
them. Following are some of those laws:-
Goods Act 1979
This law means that the person selling the product or service, has the legal right to do so. If
they are selling goods by description the goods have to correspond with the description.
British Airways have the legal right to sell their products and services however they don't sell
by description in newspaper as they show pictures and promote the services which they offer
instead of describing it, they also don't sell in catalogues (Louviere and et. al., 2013).
Emirates also have the legal right to sell their services, and they do sell by catalogue, so their
products have to correspond to their description.
Consumer Protection from Unfair Trading Regulations 2008
This law is to ensure companies act honestly and fairly towards their customers. This applies
both to British airways and Emirates, as their passengers are taking their services from them.
Consumer Credit Acts 1974
This law requires most businesses that lend money to customers or offer goods and services
on credit or engage on certain credit activities to be licensed by OFT. Trading without a
license in such cases is a criminal offence and can result in a fine and/or imprisonment. This
doesn't not apply to British Airways and Emirates as they don't offer credit for their services.
Consumer Protection
This law is aimed at making sure that businesses act fairly towards their customers, this
applies to both British Airways and Emirates, and they sell services to passengers. This will
allow customers to be protected, and businesses treat them fairly (Anda and Temmen, 2014).
Data Protection Act 1998
It is a United Kingdom Act of Parliament which defines the law on the processing of data on
identifiable living people and is the main piece of legislation that governs the data protection.

Use of Voluntary Codes
There are 2 advertising codes of practice that describe how businesses should advertise. Non-
broadcast adverting like print, sales promotion, direct emails are such. This code specifies
standards for accuracy and honesty that business must stick to. Other one is Broadcast media
which include TV and radio and sets standard about accuracy and honesty businesses must
stick to and also have rules about things like scheduling.
Pressure groups and consumerism
This act says that people could come together and can form a pressure group who will be
protecting the rights of consumer.
TASK 2
P3. Describe how one of the selected organisations uses marketing research such as
qualitative; quantitative; primary internal/external research; and secondary internal/
external research to contribute to the development of its marketing plan.
Quantitative analysis refers to economic, business or financial analysis that aims to
understand or predict behavior or events through the use of mathematical measurements and
calculations, statistical modeling and research. Quantitative analysts aim to represent a given
reality in terms of a numerical value. Quantitative analysis is employed for a number of
reasons, including measurement, performance evaluation or valuation of a financial
instrument, Emirates is one of the renowned airlines which is know for its services all over
the world (Papasolomou and Melanthiou, 2012). It uses various methods of research to know
the customer needs and desire. They use quantitative research to find out how many airports
are there in a particular country, conduct survey that in a year how many people travel from
flight. Qualitative analysis is a securities analysis that uses subjective judgment based on
unidentifiable information, such as management expertise, industry cycles, strength of
research and development, and labor relations. Internal and External are the sources of the
research or we can say that they are two sources of information from where data for
marketing research can be obtained.
(A) Internal Sources:

These refer to the sources of information within the organisation. In certain cases internal
sources are indispensable without which the researcher cannot obtain desired results. Internal
sources include accounting information, salesmen’s reports, statistics in relation to
advertisement expenditure, transportation costs etc. Information from internal sources is
easily available and no financial burden is involved in gathering the information (Clayson,
and Haley, 2013).
(B) External Sources:
If Emirates like to study its marketing problems in detail the need of external sources of
marketing research arises. External sources are of immense importance and utility in case
where research needs detailed and thorough investigation. External sources data can be
divided with two categories (a) Primary data (b) Secondary data.
Primary Data:
This refers to the information collected by the researcher from original sources. It is not a
published data; it has to be gathered by the researcher himself by tapping various resources.
Primary data is usually collected for specific purposes.
Secondary Data:
Secondary data is already existing which has been collected and published by some
individuals or institutions. This data is available at a very low cost and it requires lesser time
to collect it.
P4. Describe how the same organisation mentioned above, utilises data and information
collected through marketing research for marketing planning.
Before preparing the market plan Emirates conduct research and collects data and
information. On the basis of that data they prepare market plan because that data and
information create a background through which Emirates get to know the status of the
company in the market (Gummesson and Mele, 2010). Data and information collected gives
them a idea that where they are lagging behind and what are the loopholes which need to be
covered. Data gives them freedom to know what are the areas where they need to work. If
Emirates wants to enter into the cargo market so they will conduct research on that segment
and will try to understand the market. On basis of that they will try to prepare a plan which

will outshine their services and will gives them competitive advantage because they know
what other cargo airlines are offering. Research should be relevant and should be credible
enough because on the basis of those research data and information plans will be formulated.
TASK 3
P5. Explain how and why groups of customers are targeted for selected products.
Airlines uses variety of products and services to explain how market segmentation
works and the different kinds of target group each individual product has. Customers and
consumer are the the key parts of the process. There are difference between them as
customers are the ones who buy the products, whereas consumers are the ones that use them,
this can often be the same person, but in some cases, the customer will not always be the
consumer.
Market Segmentation
A segment orientated marketing approach enables decisions about intensity of marketing
approaches for particular segments and is the primary basis for developing targeted and
effective marketing plans. There are a range of advantages for both the consumer and the
business:
 Better serving customers needs and wants.
 Higher Profits
 Opportunities for growth
 Target Communication
Market Segmentation allows businesses to tailor the marketing mix for specific target
markets, rather than offering the same marketing to vastly different products, making it easier
to satisfy the customers needs (Jones, 2010). There are also the four primary bases on which
to segment a consumer market based on the individual:
Geographic Segmentation:
Based on regional variables such as region, climate, population density, and population
growth rate.
Demographic Segmentation:
Based on age, gender, ethnicity, education, occupation, income and family status.

Psychographic Segmentation:
Based on values, attitudes and lifestyle.
Behavioural Segmentation:
Based on usage rate and patterns, price sensitivity, brand loyalty and benefits sought.
TASK 4
P6. Develop a coherent marketing mix for a new product or service.
I am going to describe and explain how Apple uses the marketing mix for one of its latest
product, a mini Ipad.
Marketing Mix:
Marketing Mix is commonly known as the 4Ps: product, price, place and promotion. These
are controllable element and it is importantly use when determined and adjusted util the right
combination that serve the needs of the product's consumers (Brown and Cave, 2010).
Description of the product:
The product I have been chosen is one of the latest product of Apple which have been
released during November 2012, the mini IPad. This new IPad is available in two models,
one with Wi-Fi and another is Wi-Fi + cellular.
Pricing of the product:
Within pricing strategies, there are three factors to its; cost based pricing, customer based
pricing and competitor based pricing. Cost based pricing is when price is determined by
adding a profit element on top of the cost of making the product. Customer based pricing is
where prices are determined by what Apple believe customers will be prepared to pay. While
competitor based pricing is where competitor prices are the main influence on the price set.
Currently, the price range of the mini IPad is from £269 to £529. This price range is
determined based on the combination of cost and customer based pricing. It is based on the
cost based pricing because, people who are actually buying the mini IPad are not interested in
the production cost of the product but instead, what they are interested in is the value which
theyprovide.
Moreover, it is also considered as customer based pricing because, the price range of the mini
IPad is considered as a premium price for a tablet. However, demand for the mini IPad is still

high because mini IPad are seen as quality product and people are obsessing about it so they
are willing to pay at the high price, therefore the price for this product is seen as reasonable
for the target market (Taylor and et. al., 2011).
Place:
They can sell their product on various platforms like on the e-commerce sites, electronic
stores and on personal websites.
Promotion:
Apple has the lots of advertising revenue so they can spend on their advertising campaign on
various platforms of media like electronic media which comprises of TV and Radio, other
than this they can give their ad into newspapers and magazines.
CONCLUSION
This is to conclude that the above report is based upon the principles of marketing and
gives us the idea that how marketing effects a business organisation like the Emirates and
British airways. Data extracted from market research helps a organisation in preparing
business plan and how they can come out with a new product through marketing mix.

REFERENCES
Books and Journals
Palmer, A., 2012. Introduction to marketing: theory and practice. Oxford University Press.
Armstrong and et. al., 2012. Marketing: an introduction. Pearson Prentice-Hall, London.
Proctor, T., 2014. Strategic marketing: an introduction. Routledge.
Skålén, P and Hackley, C., 2011. Marketing-as-practice. Introduction to the special issue.
Louviere and et. al., 2013. An introduction to the application of (case 1) best–worst scaling in
marketing research. International Journal of Research in Marketing. 30(3). pp.292-
303.
Anda, M and Temmen, J., 2014. Smart metering for residential energy efficiency: The use of
community based social marketing for behavioural change and smart grid
introduction. Renewable Energy. 67. pp.119-127.
Papasolomou, I and Melanthiou, Y., 2012. Social media: Marketing public relations’ new
best friend. Journal of Promotion Management. 18(3). pp.319-328.
Clayson, D.E and Haley, D.A., 2013. An introduction to multitasking and texting: Prevalence
and impact on grades and GPA in marketing classes. Journal of Marketing
Education. 35(1). pp.26-40.
Gummesson, E and Mele, C., 2010. Marketing as value co-creation through network
interaction and resource integration. Journal of Business Market Management. 4(4).
pp.181-198.
Jones, B., 2010. Entrepreneurial marketing and the Web 2.0 interface. Journal of Research in
Marketing and Entrepreneurship. 12(2). pp.143-152.
Brown, K.G and Cave, J., 2010. Island tourism: marketing culture and heritage–editorial
introduction to the special issue. International Journal of Culture, Tourism and
Hospitality Research. 4(2). pp.87-95.
Taylor and et. al., 2011. Student engagement and marketing classes. Journal of Marketing
Education. p.0273475310392542.
Online
Introduction to Marketing. 2017. [Online]. Available through
<http://www.academia.edu/18574473/UNIT_3_INTRODUCTION_TO_MARKETING_NE
W_LEVEL_3>. [Accessed on 5th May 2015].