Report on Principles and Practices of Marketing

Principles and Practices of
Marketing
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INTRODUCTION
Marketing is the set of activities perform by an organization to promote and sell the
products or services to the customers. It is considered as the process that includes product design
and development, research, customer service and promotion. The four basic marketing principles
are Place, Price, Product and Promotion. It helps the firms to get an understanding about the
product or service that is offer to the customers. In this presentation, the company that is
undertaken is Virgin Active, it is a health club chain in various countries such as Botswana,
South Africa, Australia, Thailand etc. The company was founded by Richard Branson and
Matthew Bucknall in 1999 and its first headquarter was situated in Milton Keynes but currently
it is situated in London, United Kingdom. The company wants to expand their operations in
Brazil to increase their market presence in the global level and to increase the revenue and
profitability of the firm. SOSTAC framework helps to raise the question that helps in planning
and executing any project. This model is given by PR Smith, which is mainly used for making a
plan related to marketing and business process. It Stands for Situation, Objectives, Strategy,
Tactics, Actions and Control. It is considered as the standard strategy and planning framework
among the companies of varies sizes like small, medium or large enterprises.
TASK 1
Situation analysis :- It is the first stage of the SOSTAC process that provides a general
description of the firm. In context with Virgin Active the situation analysis based on the
following macro environment factor of Brazil that is discussed below :-
 Political factors :- It basically involves the government laws and decision that
authorities of the government makes to provide some guidelines to the companies or
firms that are out of control and not following the principles. This factor elements are
such as government policies, international trade policy, tax policy etc. In context with
Virgin Active expanding their business in Brazil, the company has to follow all the
guidelines provided by the country to run their business. So that in future the company
did not have to face any challenges and difficulties to run their operations.
 Economic factors :- These are the factors that can affect the economy and influence the
investments but are not linked to the business. It includes interest rates, employment and
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unemployment rates, foreign exchange rates, and raw material costs. In context with
setting up the business in Brazil it has to face a lot of challenges such as complicated tax
system, the decrease in consumer demand, tariff and non tariff barriers and poor
infrastructure. But the country also offers the various opportunities to the international
and domestic firms to expand their businesses in several sectors like health,
infrastructure, energy, aviation, IT, energy, tourism and education.
 Social factors :- These are the elements which may affect our habits and thoughts
process in social situations like demographics, which consists of age, gender, race,
consumer behaviours, opinions and attitudes etc. With the reference of expanding the
Virgin Active in Brazil, the company should analyse the social challenges faced by the
country like many children still did not get the proper education, proper health care
centre and housing. Discrimination on the basis of race and gender is common in Brazil
that may have affect on the surrounding of health club of virgin active.
 Technological factors :- These are the factors that is thoughtful for the improvement of
application and improvement of products which can affect the marketplace or industry. It
includes the changes in automation, technology, research and development, which helps
Virgin Active to find new ways of delivering the service or new ways distributing
products and services in Brazil. The government authorities heavily invest on the
innovation, creativity, research and development.
 Legal factors :- These are the factors that the firm should strictly follow to be free from
any troubles such as consumer rights and laws, equal opportunities, product safety and
labelling, health and safety. The company must have the knowledge about all the rules
and guidelines of the country in which the firm is going to open its business. Written
contracts of employment is very ordinary exercise of contracts of employment albeit it is
not needed under the law of Brazil. This country encourages the foreign direct investment
but it also restricts to invest in some sectors such as financial institution, investment in
the postal services, nuclear energy, private security and transport to the residents of
Brazil and International investors.
 Environmental factors :- These factors are immensely influenced from the locality of
environment and due to the rise of importance of CSR, this element has become a critical
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