Principles of Sales and Marketing

This report discusses the principles of sales and marketing, focusing on topics such as producing and evaluating a marketing plan, the impact of marketing on customers and organizational context. It also includes a case study on Ryanair, an Irish low-cost airline.

Principles of sales and
marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Produce and evaluate a marketing plan.......................................................................................1
Impact of marketing on customers and organisation context......................................................7
CONCLUSION.................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing refers to the process that undertakes to promote the company's buying or
selling of a product and services. This is the activities of getting the potential clients that may be
interested in specific product or services. It is the activity that has wide range of activities that
includes research, promoting, selling and distribution of goods and services. This is mainly
focused on to the study of market and consumer behaviour and its analyse the commercial
management of the company in order to attract and attain the potential consumers by satisfying
their needs and wants (Tan, Fu and Yi, 2016). Marketing is the factor of business that is
consumer focused and it all principles are also directly related to he consumers. As it main aim is
to find out where demand exist in the market for the specific product or services and then come
up with the solutions. This report id based on the ryanair it is an Irish low cost airline
organisation that was established in 1984. this has its primary operations based at Dublin and
London Stansted airports. This study includes understanding of marketing and sales concepts
with the diverse changing marketplace, ethical marketing and sales practices, marketing theory
through the formulation of marketing plan, impact of marketing from consumer and
organisational prospective.
MAIN BODY
Produce and evaluate a marketing plan
Marketing plan refers to the blue print of the company which includes the various
marketing strategies and also undertake the concrete actions and anticipated results of them.
Marketing plan provides a road map for the organisations to implement, measures and control
the marketing efforts and there results over the specific period of time(Mullen, Stuart and
Thomas, 2019). An effective marketing plan provide support to the companies in order to
understand the target market and competition, examine the impact and results of the marketing
decision and provides direction for the future initiatives. This is associated with the marketing
research that monitor the directions for all the marketing efforts with the help of vital
information of potential customers and about the feasibility of the product and services at the
market place. Along with this, it overview the industry and economic trends, search for the
competition to determine how a company can gain the competitive advantages and also
offers the best suitable that helps in to reach target market. This plan is needed for the Ryanair as
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this provides the detailing about the product, services and marketing strategies. The marketing
plan for Ryanair is discussed below:
Overview of the company
RYANAIR is the largest Europe budget airlines that is scheduled with the passengers
flown and carried the highest international passengers then any other airline (Palmatier and
Sridhar, 2017). It is an Irish low cost airline that was established in 1984 with the headquartered
in swords, Dublin. This is having its primary operations based on the Dublin and Landon
Stansted airports. It is refers to the largest part of the Ryanair holdings of airline along with this
it also has Ryanair UK, buzz and Malta airlines. Ryanair has been grown from the small airlines,
it first flying the short journey from Waterford to London Gatwick and now become the Europe's
largest carrier. There are over 19000 employees working with this company from that most of
them are employed and contracted by agencies for the flying the Ryanair aircraft. This company
operates more than 300 Boeing 737-800 aircrafts. Along with this network of ryanair is serves 40
country in Europe, north Africa and middle east.
Executive summery
This report is based on the ryanair airlines that has been launching new product feature
that is seatbelt in their aircraft. This analysis has been provide the outcomes of understanding of
marketing plan for the company’s new product (Rantala, Yllikäinen and Holopainen, 2020). This
will include various strategies and tactics which support in to get the directions towards the
future initiatives. Along with this there will situational analysis that includes SWOT, it is the
framework that is used to know company’s internal strength and weakness and external
opportunity and threat. Furthermore outcome of this report is also consisting of the action plans
that are going to follow by the company.
situation
SWOT analysis: this is refers to the frame work which used as the strategic planning
technique to analyse the internal environment of the organisation. In which strength and
weakness are internal to the company that can be manage, control and change by the firm and
opportunity and threat are external on which company has no control. Where a company can a
advantage of opportunity to deal with the threat but can’t change them (Kelly, Johnston and
Danheiser, 2017). In context to ryanair swot is discussed below:
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Strength: At the starting of this company, ryanair started its operated with the 15-saeter,
plan were so small in which attendants with the height 5”2’ could work as the cabin was too
small. As now ryanair and its subsidiaries owns 470 aircraft this shows the growth that has been
achieved with the 32 years (Borders and Lester, 2020). Strong balance sheet: As per the statement out on to the Irish stock exchange, ryanairs
has stated the yearend cash equivalent of 3.8 billion Euros. Along with this it has
projected the profit of 1 billion Euros in the end of financial year. Business model: In the situation of COVID-19 pandemic, keeping cost low as possible is
the main aim of ryanair’s business model. Along with this it keeps the cost low by
providing non-essentials services and add-ons. Routes: Ryanair offers the highest routes and networks among the any airline in the
word. It offers 1831 routes, American airlines is at the second place which offers 1106
routes. The difference which is given a ryanair dominant lead of over 65% more routes
then its strongest competitors. Stock market performance: The ryanair has been the safest stock in the airline sector
which can be purchase by the stakeholders.
Weakness
 Refunds: Customers are unhappy with the ryanair refund policy it provides only 5% of
the refund claim within the legal time frame. Along with this, it offers time limited
vouchers rather than cash refund (Andersson, Axelsson and Rosenqvist, 2018).
 Controversial positions: CEO of ryanair, Michael O’Leary said that operating airline
with the social distancing is stupid, this comment is stated the negative impact on the
image of ryanair and the CEO.
 Brand perception: Ryanair achieving its success on the model of satisfying the customers
wants, safe air travel within the lower cost with high level of punctuality. However from
many years ryanair brand name performed poorly in market placein a range of polls,
survey and awards.
 Seasonality of earning: Ryanair earning are seasonal, as profits highly rely on the strong
hemisphere summer and in the winter mostly it suffer loss.
Opportunities
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 Improved customer service: Ryanair has an opportunity to get the more potential
customers through the improvement in the existing services so that it will help in
to retain the customers for the longer period of time.
 New aircrafts: Ryaniar has the future opportunity to add more aircrafts with this
it can grab the maximum market share with the highest customer base in the
airline sector.
 Talent availability: With the number of skilled professionals such as pilots,
ground staff, cabin crew and engineers. They are competing to re-enter
employment with this ryanair has the opportunity to get and hire the best talent
available (Ruokolainen and Aarikka-Stenroos, 2016).
Threat
 Competitive response: Competitors are the biggest threat for the ryanair, such as
easyJet, wiz air, air Asia etc. now they responding can give tough competition that
cam hamper the productivity of the company.
 COVID-19 Restrictions: Almost every country is facing the COVID-19
pandemic, in the absence of consistent recovery, airline industry is get effected
immensely and taking step back.
Objectives
Ryanair objective and aim is to become the Europe leading low fareairline through the
continuous improvements in the operations and through expanding its offering and services.
Furthermore it aims to increase the number of passengers or customers by 2024 with the help of
lowering prices and enhance operational efficiency. In this highly challenging current
environment, it seeks to lower the prices for the airlines that support in to generate increased
passengers traffic while maintain the continuous focus o to the cosy management and operations
efficiency (Sohrabi, Raiesi and Nik Aein, 2017). It also has the objective of making the use of
latest technologies, engaged in the commitment to safety and quality management. In addition to
this it will enhance the operational results through ancillary services with the all of this it has
focused and aim on the growth along with responding to the current challenges effectively.
Strategies
 Segmentation: Market segmentation refers to the process of diving target market into
smaller and more defined categories that are accessible, actionable and profitable and
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with that have a n growth potential. As it is not possible to target the entire market
because of the time, cost and efforts restrictions. Segmentation allows the company to
closely monitor the product as according to the need, desires and spending ability of
customers. In context to ryanair, they have segment their market on the basis of
demographic and behaviour segmentation (Hale, 2016). as this is a multinational airline
company in which they have to know about the customer behaviour for choosing the
airlines. this allows the company to concentrate on their resources, money, time, efforts
on the profitable market place that provide support in to grow in numbers, usage and
value.
 Targeting: This is an important aspect as it is a part of holistic marketing strategy. This
strategy involves the process of identifying the specific individuals or specific content.
Companies use this factor of marketing to learn more about the customers and thus create
advertisement and marketing for the specified groop to maximize the response and profit.
This strategy is much and more effective when there is an mass marketing, as it targets
the group of customers on the basis of various factors and most likely to interact with the
brand and product. ryanair has targeted the high and business class people along with the
middle class as well, as it provides the superior services that cannot be afford by the very
class and also try to keep its price low as to target the middle class customer base. With
the help of this ryanair will know who they want to convert and then aiming content to
the specific consumers. This provides the strong customers base and long term
sustainability.
 Positioning: This is refers to the concept of associating and developing the position of
brand and its product in the eye of customer at the market place. Since mind of a human
begins are stuffed with the information and knowledge, so it becomes important to
choose the unique position in the mind of customers. Ryanair has already acquired it has
the highest routes and network in the world that makes its brand image different from the
other airline companies and it also work on to the strategy of offering low fare with the
high quality. With this ryanair can attain the longer sustainability and growth.
Tactics
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 Product: The Company is planning to introduce new product in their airline that is a
seatbelt. This will add one more feature in the aircrafts that will increase the safety
measures and to enhance the internal quality of the aircrafts.
 Price: Company has chosen the penetration pricing for its new product. This is a pricing
strategy where price of the new product is initially low to attract the potential customers.
As lower price helps a new product or service to penetrate the market and get the
customers away from the competition.
 Place: Ryanair launching this new product within the flights, this is new feature that is
added in the flight to increase the safety and quality.
 Promotion: Ryanair is willing to do digital and social media marketing for their new
product seatbelt. This help the company to reach to the wide range of customers
Action plan
Budget allocation: A budget is refers to the financial plan which is used to estimate the
revenue and expenditure for the specific period of time. It is an management planning tool that
works to assist the allocation of resources (Olse, Wagner and Thack, 2016). A budget allocation
is the amount of funding delegated to each expenditure line. This shows the amount of fund
which an organisation is willing to spend on the given item and programme.
cost of the new product of ryanair is discussed below:
Particular Amount ( in euros)
marketing 4000000
Raw material 6343000
Workforce 5469000
Equipments 7458000
Controlling and monitoring: With the major purpose providing safety and increasing quality of
the aircraft. rayanir has also enhance the effectiveness and efficiency of new market segment and
targeting customers. Ryanair has utilising its benchmark and KPI that is an revenue growth. This
approaches is helpful for them in order to measure the effectiveness and success percentage that
has been achieved after the implementation of new product. This includes comparison of the
their performance with the other rivals in order to determine the market position. With thw
support of sales analysis tool of evaluation performance, sales is being measured through the
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sales data of past period is gathered and then it is compared with the new sales record or data to
analyse effective marketing plan. That shows the successful implementation of the product into
the market.
Impact of marketing on customers and organisation context
Marketing helps in transfer, exchange and transfer in goods: Marketing help in to the
availability of the product and services at the convenient place for the customers. With the help
of various intermediaries such as wholesaler, retailer, agents etc. this is helpful for both
organisation and customers, as it tells about the specific needs and preference to the organisation
so that they can able to fulfil them and with this customer finds satisfaction along with the
fulfilment of the demand.
Marketing helps in raising and maintaining living of standard of the society: By making
the uninterrupted availability of the goods and services to the customers at a reasonable price. As
with this marketing played an important role in raising the living standard of the community,
community is comprises of three class of people that is high class, middle and poor, everything
which is used by these people is supplied by the marketing.
Marketing acts as a basis for decision making: In today’s scenario marketing has become
a very complex and tedious task it has emerged as new specialised activity along with the
production. Producers are largely depending upon the marketing activities as to decide what to
produce and sell. This provide support in to the decision making regarding the product that is
going to be sell in the market along with satisfying the need of the customers.
CONCLUSION
From the above analysis it has been concluded that marketing is the process that is
undertaken to promote the buying ad selling of the company's product and services. This activity
helps in to attract and retain the potential customers. Moreover marketing plan is refers to the
blueprint of a company that includes the various strategies and offers the roadmap which
determine the directions towards the future initiatives. This is associated with the strategies ,
objectives, action plan, internal analysis and tactics that is to be taken in the consideration while
making marketing plan for the newly launched product and services.
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REFERENCES
Books and Journals
Andersson, P., Axelsson, B. and Rosenqvist, C., 2018. Future Studies of Marketing and Sales
Organization. In Organizing Marketing and Sales. Emerald Publishing Limited.
Borders, A.L. and Lester, D.H., 2020. Sustainability challenges in marketing, sales, and other
business practices: Introduction to a Journal of Global Scholars of Marketing Science
special issue.
Hale, D.H., 2016. Pilot to profit: Navigating modern business entrepreneurship to build your own
business using online marketing, social media, content marketing and sales. Journal
of Applied Management and Entrepreneurship. 21(3). p.131.
Kelly, S., Johnston, P. and Danheiser, S., 2017. Align or Die? Ensuring Marketing and Sales Are
Aligned with the Customer. In Value-ology (pp. 153-182). Palgrave Macmillan,
Cham.
Mullen, L.G., Stuart, R.S. and Thomas, M.L., 2019. Use of Social Media by Sales Students for
First Post-Graduation Job-Search: An Exploratory Study.
Olsen, J., Wagner, P. and Thack, L., 2016. Wine marketing & sales: Success strategies for a
saturated market. Board and Bench Publishing.
Palmatier, R.W. and Sridhar, S., 2017. Marketing strategy: Based on first principles and data
analytics. Macmillan International Higher Education.
Rantala, J., Yllikäinen, M. and Holopainen, T., 2020, July. Competences in Expert Sales.
In International Conference on Applied Human Factors and Ergonomics (pp. 124-
130). Springer, Cham.
Ruokolainen, J. and Aarikka-Stenroos, L., 2016. Rhetoric in customer referencing: Fortifying
sales arguments in two start-up companies. Industrial Marketing Management. 54.
pp.188-202.
Sohrabi, B., Raiesi, I. and Nik Aein, N., 2017. Customer Segmentation in Pharmaceutical
Industry Assisting the Decision Making of Marketing and Sales Managers Based on
RFML Model. Journal of Business Management. 8(4). pp.861-884.
Tan, X., Fu, F.Q. and Yi, H., 2016. Improving retail sales performance by integrating HPT with
marketing strategies. Performance Improvement. 55(1). pp.6-13.
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