Principals and Practice of Marketing

Added on -2020-11-23

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Principals andPractice ofMarketing
INTRODUCTIONMarketing can be defined as the process which starts with the idea generation of anproduct or service and ends with the satisfaction of the customers. The idea of the products orservice aims at satisfying the needs and demands of the customers. Principles of Marketing canbe defined as the activities or tasks which are related in the process of transferring the goodsfrom the seller to the buyer (Horner and Swarbrooke, 2012). The company chosen for thecompletion of this assignment is Sainsbury which is the largest supermarket chain in UK andwas founded in the year 1869 by John James. The company provides various kinds of productsand services to their customers such as home and beauty care products, food products and manyluxury beauty products. The following assignment will make its focus on the application ofSOSTAC Model on Sainsbury Company, as the company will spread their business operations inanother country which is Indonesia.MAIN BODYSOSTAC Model of MarketingThe following model is one of the most well regarded models of marketing. It waspropounded by PR Smith in the year 1990. This Model focuses on six aspects of marketingwhich are named as Situation, Objective, Strategy, Tactics, Action and Control (Allyson Dooley,Jones and Iverson, 2012). In order to expand the business of Sainsbury Company in Indonesia,the following analysis has been used which is discussed as under:Situation Analysis: The following analysis has been used in order to know about the impact of internal aswell as the external environment on the working of an organisation or industry. So in order toknow about the impact of external environment on the working of Sainsbury in Indonesia, theuse of PESTLE Analysis will be done. PESTLE Analysis:The following analysis is used in order to know about the impact of external environmenton the working of an organisation. So in order to know about the impact of external environmenton Sainsbury, the discussion is provided as under:Political Factors: It includes those factors which impacts upon the working of anorganisation due to the factors such as political stability, instability, governmental1
policies, employment laws, labour laws and many more. The financial condition of thecountry is not stable which could create negative impact on the working of the companyin this country (Alserhan, 2017). It is so because the company will not have regularsources of income and could occur loss in its operations.Economical Factors: These are those factors which impacts upon the working of anorganisation due to changes in the growth rates, inflation, deflation, disposable income ofthe people of a country, interest rates and many more (Armstrong and et. al., 2014).Indonesia is counted in one among the developing economies of the world and this alsocan be considered as the country which might help a business organisation in expandingits business in a right full manner. Emerging market will definitely help businesscompany to start engineering high returns on the investments that they have made underthe same.Social factors: this is being considered as another crucial factor of external environment,wishes mainly connected with society. Under the social factor their many elementsrelated to human beings like believes, perceptions and their values might impact uponworking of a business organisation. Regarding this, Sainsbury’s needs to understand thegap among their own products and what public is asking for. This could be understoodwith very good example of China, where it will be required for Sainsbury to enter themarket with considering all the requirements that public of this Nation is having. Ethicsand cultural diversity will affect the social relations, as they contribute a major role indevelopment of company in Indonesia.Technological factor : Another vital most factor within the external businessenvironment which mainly impacts upon profit margins, and helps a company inexpanding its business (Baker, 2016). Considering the technological factor it can be saidthat Any organisation like Sainsbury could communicate with customers directly e orthey can provide all the information related to products or services that they are offeringto the customers with the help of websites and other sources which are connected withtechnology. Away with this company can also start online business as well which willdirectly improvise there customer base in a fast moving sense across the borders likeIndonesia or other business Nations that are having the emerging markets.2

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