An Analysis of Promotional Mix and Customer Satisfaction

The provided document is an assignment that delves into the realm of marketing studies, specifically exploring the influence of brand image and promotional mix on consumer buying decisions. The assignment also touches upon the importance of effective marketing strategies in e-commerce, citing real-world examples from Morrisons supermarket and other companies. A range of sources are consulted, including academic journals, online articles, and case studies. The analysis provided offers insights into the role of promotional mix in shaping customer satisfaction and driving business success.

Principal And Practice of
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Promotional tactics of high supermarket ....................................................................................1
TASK 2..........................................................................................................................................11
Theoretical aspect of Promotional mix.....................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing refers to the process in which company sells its product through different
marketing promotional techniques like advertising, personal selling etc. It emphasizes on
creating long term relationship with the customers for the purpose of increasing sales(Oladepo
and Abimbola, 2015)
Present study will be based on Morrison Company is the biggest supermarket in the
United Kingdom. It was founded in 1899 and its headquarter is situated in the Bradford, West
Yorkshire, England. It is a public limited company.
Report will include the promotional tactics inside the store, away from store and
digitalised way of promoting the product. Further more it includes theory of promotional mix
and its effectiveness on the company(Yang and Lee, 2016)
TASK 1
Promotional tactics of high supermarket
Marketing Strategy
Marketing strategy refers to setting up of plan and its evaluation and then its
implementation in the market for selling the product in the market. Morrisons use a marketing
mix strategy for promoting its product in the market. As it uses 7Ps strategy, Firstly in case of
product it believes that providing fresh product to the customer leads to success. It manufactures
its own product by ensuring the quality of the product. Price is the main strategy which every
company has to decide to sale its products. Morrison thinks that customer satisfaction is more
important than the price of the product so it ale its product by lowering the price(Charanah and
Njuguna, 2015) Place is another marketing mix factor Morrison cover the large part of UK and
different countries to serve its product and also sells its product through online marketing. And
also By providing special offers Morrison attract customers to buy their product offline or online.
It provides job opportunities to many people in the country so that they are also the part of their
business. By maintaining the quality of the product at reasonable price company attracts the
customer through this process.
Morrison has its operations in different countries and through websites also it ensures the
availability of particular product in its range. Morrison company also use discount strategy to sell
its products offline and online(Maulani, 2017)
1

Promotional tactics inside the store
Promotional mix is the tool which a business use to encourage the customers to buy their
product by 4Ps of the marketing mix strategy.
Product: It is defined as the company is giving goods and service to its customers to satisfy the
needs and wants of them. For example: Quality of the product, packaging etc.
Price:It refers to the situation when customer buy product from the company and pay money for
it. For example: Discounts, payment through credit cards.
Promotion: It means company is promoting its product to the customer by using various
promotion techniques like advertising through newspapers templates etc.
Place: It refers to place where product is available for the customer. For example: supermarkets,
shops etc(Mohammad, 2015)
Morrison’s uses different promotional tactics that are as follows:
Discount: Morrison is providing discount to its customers. By availing different offers to the
customers it sells its product in the market. It also offers online discount to the customers.
Through special discounts it attracts the customers. Morrison also provide quality with its
product.
2

Source: Morrisons tries to beat the discount supermarkets, 2019
Source:Morrisons tries to beat the discount supermarkets, 2019
New Product: Morrison is going to launch the new range of its food product that is vegan and
wonky veg. Company launches its new product to attract the customers to purchase their product.
Company launches ready to eat food item to attract the customers who are in search of it. This
product helps customers to eat that food directly. Company continuously work on launching new
products so that it can gain attention of mass audience(Ismail, Mubarack and Thulkifly, 2015)
3

Source: Morrisons supermarket launches vegan ready-meal range, 2019
Enhancement of Sales:
Morrison offer sales every month to the customer so that they can buy from their
company. It also provides sale offer to its regular customer. It gives vouchers to its consumers
and give reward points as well. Both these promotional tactic supports the organisation in order
to gain attention of buyers and they become frequent buyer of company. Morrison is the third
largest company in UK in retail sector, it offers wide range of products to its consumers. In
order to gain attention of buyer organisation gives gift cards to its consumers. This is the selling
strategy of company in its store. These attractive gift vouchers and gift cards makes the person
frequent buyers, as they continuous buy items to increase their reward points so that it can be
managed against their bill(Samardžija and Marinclin, 2016)
4

Figure 1Morrisons Supermarket Gift Card | Morrisons Gift Card Balance, 2016
Music
This is another promotional mix technique that is used by Morrison. Company plays slow
music at its store so that existing customers feel good and they plan to come to its store next time
as well. This is the best way through which firm can retain its consumers and can make them
positive towards the brand. Existing customers give positive views to their friends and families
as well that helps the company in increasing number of people in the organisation.
Layout services
One of the major activity that implemented by Morrison at its store is that it continuously
works on improving presence of its retail outlet. As firm has clear space at its store and give
quick services to its consumers. Company has hired skilled employees those who understand
needs of buyers and provide them immediate services thus, waiting period is here very
low(Charanah and Njuguna, 2015)
Figure 2New Store Fit-out, Morrisons, Colindale, 2018
5

Promotional tactics away from the store
Morrison provides many promotional tactics away from the store are as follows:
Billboards : It is the most common method of selling the product offline. Most of the company
promote its product through this method. As it is easy for the company to advertise through it as
customer is passing from particular area and saw the advertisement of any product then it will go
to the market and purchase it. This technique is cheap for doing advertising for Morrison and to
attract the customers.
Radio: This is the oldest technique to sell the product in the market. Morrison also use this
technique to promote its product in the market. This is also beneficial for the customer to know
about the availability of that product in the market by sitting at home. Through this it attracts the
customers to purchase their product. Morrison discuss about facilities provided by company,
uniqueness that have in the products of Morrison so that mass number of people can get to know
about its products and make their mind to buy its goods and services. Company targets families
and professional ladies those who like to shop. This target audience are being aware through
radio announcements.
Figure 3Radio shock jock is SACKED after posing for a photo alongside Prime Minister Scott
Morrison with a VERY cheeky hidden message - but has the station overreacted, 2019
6

Promotional tactics by digitalisation
Morrison sell its product with the help of social media networking. It uses different
websites to promote its product as well use of different applications.
Facebook: Through Facebook Morrison sells its product. By using the social media company
covers large part of customers. By providing them special online offers to purchase the product.
As everyone is using Facebook nowadays so through it company can attract large number of
customers. It uses attractive colours and make presentable brochure and upload it on its
Facebook page. This helps in gaining attention of buyers and making them aware about its new
offers. Morrison post and share reviews of its consumers on its social sites so that more people
can get to know about bran value of organisation. This supports the organisation in increasing
sales and gaining competitive advantage as well(Oladepo and Abimbola, 2015)
Figure 4 No, Morrisons is NOT Giving Away Free £150 Coupons on Facebook, 2018
7

Figure 5Reviews, 2016
Instagram : Through this also company can attract more customers towards it. By providing
promotional ads between the working of the application can lead to increase the sales of
Morrison. Nowadays it is the most technique to promote the product through social media
platform.
Views of outside agencies regarding Morrison company is that it offers quality product
with lower price to the customer. As Marrison is providing products both offline and online by
providing special discounts to the customers. As the company is growing at the fast pace. As
many customers are satisfied with this product. Services provided by the Morrison is also good.
Customers feel free to give feedback to the company. It provides the quality to the customer by
satisfying their needs and wants. As company is increasing its sales day by day and earn profit.
Along with the satisfaction customers get quality products. The main purpose of the company is
to satisfy the customer while only selling the product in the market(Maulani, 2017)
Outside agencies have views that Morrison always take right investment decision. Its
investment decision supports the organisation in increasing return on investments to great extent.
That is why firm has become able to manage its assets well and minimising the cost as well. As
compare to its competitors organisation has worked so hard and has made its consumers loyal
8

towards the brand .Company continuously takes feedback from its buyers and make changes in
its products accordingly. That is why reviews of consumers are very positive on its social
networking sites.
Figure 6SAINSBURY’S VS. MORRISONS – AN INVESTMENT, 2012
Theories that are used for promotional tactics
Customer Relationship Management theory
The CRM Strategy is followed by every business. This model is used by the company to
follow the CRM strategies in the company. The main purpose of this model is to build a
relationship with its customers. It is necessary to maintain a relationship with the customers to
increase the sales of the product. Most of the customers buy products because they are having
good relationship with the company(Morrisons tries to beat the discount supermarkets, 2019.)
9

Source: Career in Customer relationship management, 2018
STP Theory
This theory is related to the term Segmenting, Targeting and Positioning in the market.
This theory simplifies the market segmentation process. Markets are divided into different
segments according to the needs of the buyer. Process of STP theory is followed by all the
companies. This process is followed in a certain process. Firstly the market is segmenting then a
particular group is targeted and then positioning is done (Segmentation, Targeting and
positioning, 2018).
 Segmenting means differentiate the market into different groups like Geographic
segment, Demographic segment, psycho graphic segment etc.
 Targeting means focus on the particular group to sell the product to the particular group.
 Positioning is the final stage in which the seller sets the position of its in the mind of
customer to become the most attractive brand in their minds.
10

TASK 2
Theoretical aspect of Promotional mix
This theory of marketing is based on the target group and on the 4Ps of marketing. These
are product, Price, Place and Promotion. Promotion includes advertising, personal selling, Direct
marketing etc. These four Ps helps in selling the product in the market and also helps in
achieving the objective of the company. Promotion can be done in many ways as:
 Advertising: Through this technique product can be sell to the market and making
consumer aware about the availability of product in the market.
 Public Relations: Maintaining the relations with the customers helps in increasing the
sales of the product. It helps in building positive image in the minds of the customers.
 Sales promotion: It is the another technique of promoting the sale of the product.
Effectiveness of promotional mix on the Morrison company
Promotional mix strategy is used by every company to sale its product in the market. 4Ps
plays an important part in the functioning of the company. 4Ps plays an important part of the
company effectiveness of 4Ps on the product are:
 Product: It means goods or services offered to the customer by the company The product
plays an important in the marketing mix without it there is no use of other 3Ps price,
place and promotion. Product is the important part of the marketing strategy. It effects the
value chain model of the Morrison company.
 Price:It is the related to the consumer, the consumer is willing to pay for a particular
product. Price is also an important determinant of the marketing strategy. It effects the
sale of the product. As now consumer is the king of the market price is decided by the
consumer. Many factors included in the pricing of the product like market share of the
company, competition in the market etc.
 Place:Availability of the product also effect the functioning of the company. If the
product is not available at the correct place then it would be difficult to sell the product in
the market. It is an important factor in channel distribution of the company. Proper
availability of transportation system will be there to transfer goods from one place to
another. If the transportation facility is not available at the time it may affect the proper
availability of the product in the market(Morrisons supermarket launches vegan ready-
meal range, 2019)
11

 Promotion: It can be done through various techniques as advertising, personal
selling,direct marketing, counter sale etc. There will be proper promotion of product son
that it will not affect the company's investment on it.It may create the financial risk for
the company.
Hence, the Morrison company's promotional mix gets affected.
Theory of promotional mix
AIDA Model
This AIDA model refers to the hierarchical model which helps in taking the purchase
decision for a particular product. This model is based on the approach that while taking purchase
decisions the consumer have to move from different steps to take the decision. The steps are as
follows:
 Attention : In this step the consumer is being aware by the company to sell its product in
the market through different marketing techniques of promotion like advertising.
 Interest: After seeing the advertisement consumer takes interest in purchasing a product.
Interest can be generated through promotion techniques or branding of the
product.Interest can be generated through the packaging and designing of the product.
 Desire: After go through the advertisement a desire is built in the mind of the consumer
to buy a particular product. Desire comes when consumer is willing to buy the product
and it has a positive impact on the consumer to take the purchase decision.
 Action: This is the last step in which consumer is taking the final decision of purchase the
product. It goes in the market for purchase intention roaming around and purchase the
product.
The purchasing decision can be effected by two factors that stimulus and its response. It is also
used for stimulus response model of marketing. As most of the company takes purchase decision
through AIDA model. Company uses this model in promoting the goods in the market.
Effectiveness of AIDA model on Morrison Company
AIDA model affects the marketing strategy of the company. As the company is using this
model to attract the consumer to buy their product on the other hand it also affects the
functioning of the company in the market. If the consumer cannot attract from the advertisement
techniques of the company then it will not be aware about the product in the market that will not
12

generate the interest in the consumer to buy a particular product and similarly not having desire
to purchase the product. Thus, there will no action taken by the consumer to take purchase
decision.
Source:How to effectively use AIDA Model for your E-commerce Marketing, 2018
Pull and Push Strategy
13

 Pull Strategy:According to the pull strategy company have to invest more money on its
advertising technique to generate the demand in the consumer to buy product. In this
there is chain between the consumer and the seller. Consumer is depended on the retailer
to buy product and similarly retailer is depended on the wholesaler and ultimately
wholesaler is depended on the producers of the good.
 Push Strategy: According to the push strategy the company tries to sell the product
directly to the customer without involvement of other people in it. It directly generates
demand among the consumers. Following strategy is followed under push category:
In this producer gives the product to the wholesaler, it passes it to the retailer and the retailer
passes it to the end user i.e. consumer.
Effectiveness of Pull and Push strategy on Morrison Company
This strategy affects the demand and supply of product in the market. If the
Company cannot generate the demand for consumers then consumer will not buy the product.
Generating the demand for consumer is more important then selling the product if consumer is
not aware of its demand then it will not purchase the product
CONCLUSION
From the above study it can be concluded that promotional tactics of marketing plays an
important role in taking marketing decisions for the company. As forming marketing strategy for
the company plays a vital role in the company. As promotional tactics can be done through
inside store, away from the store and through digitalisation technique. It also depends on the
outside views of the company. There are promotional strategies through which company can
build the relationship with customers through customer relationship management model and STP
model of promotional mix. Similarly, AIDA model and pull and push strategy have an impact on
the promotional mix of the company.
14

REFERENCES
Books and Journals
Charanah, J. and Njuguna, R. K., 2015. The effects of promotional mix tools on brand equity
among hospitals in Nairobi County. International Journal of Sales, Retailing and
Marketing. 4(6). pp.45-51.
Ismail, M. B. M., Mubarack, K. M. and Thulkifly, M. Z., 2015. Impact of service marketing mix
on customer satisfaction.
Maulani, T .S., 2017. The effectiveness of promotional mix toward image of the thematic day in
bandung. International Journal of Business, Economics and Law. 12(2). pp.26-34.
Mohammad, H. I., 2015. 7PS marketing mix and retail bank customer satisfaction in northeast
Nigeria. British journal of marketing studies. 3(3). pp.71-88.
Oladepo, O. I. and Abimbola, O. S., 2015. The influence of brand image and promotional mix on
consumer buying decision-a study of beverage consumers in Lagos State, Nigeria. British
journal of marketing studies. 3(4). pp.97-109.
Samardžija, L. and Marinclin, I., 2016. ANALYSIS OF PROMOTIONAL ACTIVITIES OF
MEDIUM AND LARGE WINE PRODUCERS IN CROATIA. International Journal
Vallis Aurea. 2(2). pp.13-21.
Yang, D. J. and Lee, C. W., 2016. In-store promotional mix and the effects on female consumer
buying decisions in relation to cosmetic products.
Online
Career in Customer relationship management, 2018.[Online].Available
through<https://www.stoodnt.com/blog/career-in-customer-relationship-management-
crm/>
How to effectively use AIDA Model for your E-commerce Marketing, 2018.
[Online].Available through<https://bsscommerce.com/blog/how-to-effectively-use-aida-
model-for-your ecommerce-marketing/>
Morrisons Supermarket Gift Card | Morrisons Gift Card Balance, 2016.[Online].Available
through < https://www.mygiftcardbalance.co.uk/general-retailers/morrisons-supermarket-
gift-card-morrisons-gift-card-balance/>
15

Morrisons supermarket launches vegan ready-meal range, 2019.[Online].Available
through<https://www.veganfoodandliving.com/morrisons-supermarket-launches-vegan-
ready-meal-range/>
Morrisons tries to beat the discount supermarkets, 2019.[Online].Available
through<https://www.mirror.co.uk/money/morrisons-tries-beat-discount-supermarkets-
5852747>
New Store Fit-out, Morrisons, Colindale, 2018.[Online].Available through <
https://www.princebuild.co.uk/news/case-study/new-store-fit-out-morrisons-colindale/>
No, Morrisons is NOT Giving Away Free £150 Coupons on Facebook, 2018. [Online].
Available through < No,Morrisons is NOT Giving Away Free £150 Coupons on Facebook,
2018>
Radio shock jock is SACKED after posing for a photo alongside Prime Minister Scott
Morrison with a VERY cheeky hidden message - but has the station overreacted, 2019.
[Online].Available through https://www.dailymail.co.uk/news/article-6634745/Radio-host-
SACKED-posing-photo-Scott-Morrison-left-prime-minister.html
Reviews, 2016. [Online]. Available through < https://www.dailymail.co.uk/femail/article-
3579589/Mother-praises-Morrisons-worker-helped-calm-blind-autistic-daughter-went-
meltdown.html>
SAINSBURY’S VS. MORRISONS – AN INVESTMENT, 2012. [Online]. Available through <
https://is.muni.cz/do/econ/soubory/aktivity/fai/35724989/FAI_issue2012_03_Kalmarova.p
df>
16