Principles and Practices of Marketing

This document provides an overview of the principles and practices of marketing, focusing on the case of Virgin Media. It covers topics such as marketing background, promotional mix, and the AIDA model. The document also discusses the various promotional techniques used by Virgin Media, including advertising, sponsorship, sales promotion, direct marketing, and public relations.

Principles and practices
of Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing is refers to the promotion of goods and services of an organisation in order to
attract the customer's. Firm considers promotion of goods and services for buying and selling
purpose. Marketing includes advertisement, selling and delivering products to the customer's or
other businesses (Aguirre, Hyman and Jones, 2020). It helps firm to increase in sales that leads to
higher profitability. The company's bottom line is to generate sales and marketing helps in to
achieve this goal. The company which is selected for this report is Virgin media. It is British
telecommunication firm that deals in telephone, television, and internet. It was found in March
2006, headquarter situated in Reading, U.K. This report covers topics such as marketing
background of firm and promotional mix of the company. Apart from this it also covers ASDA
method, push and pull strategy for the firm.
TASK 1
Introduction of the company:
Virgin Media is a British company that attached with telecommunications which provides
telephones, internet and media services in the United Kingdom. It was established since 2006,
headquarter of the firm located in Green park in Reading, England. Virgin media has subsidiary
of it since 2013, that is known as Liberty Global Plc, it is an international television and
communication firm. The firm previously listed on the London stock exchange. This firm was
founded by the merger of two companies that are NTL and Telewest in 2006. In November 2006,
the firm Is deals with Sir Richard Branson in reference to licence the Virgin brand for the
combined business. All of two companies services running as a single entity Virgin Media that
name called in February 2007. the firm owns its fibre- optic network in the United Kingdom, this
Fibre not able to reach customers premises, instead of this going to a near by cabinet to provide
s to the cabinet service of a fibre. Till December 2012 it has approx 4.8 million cable customers,
from those customers around 3.7 million are attached with its television services, around 4.2
million with broadband services and with fixed line telephony services the ratio is around 4.1
million. Apart from this in the same date 8it had around 3 million mobile connected customers.
Since the small world cable in 2014, this firm has sole distributor of national cable company in
Great Britain and now a days it covers almost 51% of UK households. This company is
connected in broadband service with Sky, BT group and Talk Talk and in mobile services with
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EE, O2, Vodafone and Three. As above mentioned firm's origins lie in both Telewest and NTL.
Telewest began in 1984 in name under the “Croydon cable” and after that it was acquired by
Denver in 1988. NTL was established in 1993 in UK able cable market by Barclay Knapp and
George Blumenthal. NTL purchased the ISP Virgin.net in 2004, having joint venture with Virgin
group since it launched in 1996. on 2018, it was announced that Virgin Media would stop its
broadcasting on all UK TV channels over fees and issues its own demanding rights (Chaudhry
and Sharma, 2018).
Background related to Virgin media's marketing:
Virgin limited was established in 2006, from this decade it promote its services by
various sources so that it can attract customers to buy its services. In past time firm used
traditional method of marketing such as it promote its products through radio, TV and
newspapers. Apart from this firm also use personal selling tool for its brand awareness to the
target market in order to achieve greater customer market by words of mouth. As the time passes
this firm was started ton do its marketing via digital platform. This brand known for doing things
in different manner and getting results by providing fun and making time to play for customers.
Brand , marketing and digital promotion forces it that makes his all happen (Chernev, 2020).
As the world converts towards more digital, it will continue to grow firm's capabilities to
stay as sole service provider in the country. The company is planned for obsession with
delivering its services to the world class customer experiences, it it mission of it to engage with
the world and everyone connected with it. In now a days firm do its marketing via social media,
Facebook, twitter etc. Apart from this it also use email, texting and news feeds for remembering
customers about the brand. In digital entertainment, its strategy is to understand what makes its
customers tick and what are their passion point that suits their lifestyle (Fine and Rush, 2018).
As the time is passing it used more digital mechanism to stay connected with customers
in order to fulfil their needs and wants. It also organised carious events and awareness camps so
that more population can know about the brand and facilitate services offered by the company.
Towards its marketing strategy organisation's managers and marketing team works for making
effective campaigns and advertisement strategy for the firm in order to aware and attain
customers base (Samad, 2019). Along with this company is providing various internet services
that also attracts customers to purchase its mobile and broadband services. Marketing strategy
helps company to achieve its business goals and objectives and firm used marketing mix as its
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marketing strategy . The marketing mix elaborates the product, place, price and promotion that
Virgin media used (Gabbianelli and Pencarelli, 2020).
Promotional techniques used by the company in a practical and tactical manner
Promotion Mix is combination different promotion and advertising tool used by company
to sell its good and services. This tool is plays vital in success of very company to sustain in
market and to give competition in market. It include many several tools such as advertising, sales
promotion, personal selling, direct marketing etc. In every organisation this tool require
extensive focus and research to implement this various strategy. It is continuous process that
coordinate the efforts of different department and bring together with specified strategies and
formulate the plan in which company need to follow. It is increase the profitability and success
of business promoting their products and services in proper manner for this role they hire
professional employees who study whole environment and accordingly develop various
promotional strategy (Seymour and Blakey, 2020). This help the business in performing well in
market and fulfil the need and demand of costumer and provide them satisfactory goods and
services. In association with Virgin Media, the firm's marketing team uses promotion mix for
their brand awareness and attracting customers in order to buy its services. Managers of the
company used promotional mix such as advertisement, sponsorship, sales promotion, direct
marketing and public relations by word of mouth. The company is public limited company which
offered broadband, telephone services, TV etc. managers of the firm used promotional mix in
order to expand their businesses and increase their customers base. The main aim of the firm
behind promotion is to expand and increase its sales. Promotional techniques used by firm
mentioned below:
Advertising – It is wide activity which involve various strategy. It communicated the
targeted costumer about the feature and quality of products and services through various means
like media, newspaper, radio. It help the organisation to promote their products into larger
audience and convince to buy their products and tells them why their products are better than its
competitors. In context to Virgin Media, it uses advertisement in various ways that are TV
adverts, newspapers, online and radios that allows firm to make people aware and attract them
for its services. The firm's mangers moving towards its marketing budget for the long term
period, brand marketing as it wants to become the most recommender brand for its media
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services and take over the BT and Sky in the telecoms sector (Vizard, 2019). This wants to
become a most demanding brand among both its employees and customer's.
Sponsorship - This is can be called as paid advertising of product and services which is
widely used by many companies. It is effective advertising when company need extensive
promotion of its product. They are free to sponsor their brand which require heavy amount to be
invested. It is quite tough for new company to sponsor their products as it require much capital.
Many company use this tactics to build strong goodwill in market which require focused research
that where they can sponsor its products. In context to Virgin Media, it used sponsorship strategy
by using different VIPs like Usain bolt and Mo-Farah (Sponsorship of Virgin Media, 2020). This
strategy allows many people to be aware about the brand and services provides by the firm. It
also makes people want to join this and use it services as celebrities use it. Through sponsorship
strategy firm wants to aware more customers about its services because any sponsorship such as
any event or to celebrities makes people aware and attract them that this celebrity is use it and
they also want to buy it (Gilligan and Lowe, 2018).
Sales Promotion – These strategy develop to increase the immediate sale of product and
services. Many company use this in many ways like discount offer, coupon cards, Free gifts,
Membership offer to attract the costumer in larger base. These are short term activities which are
important for advertiser to be focus on. In Virgin media, firm uses sales promotion method in
different ways such as discounts, offers and any coupon provide them. For example when they
have a new customer, firm offers them to provide free service for six months and also provide
them that they can pay on monthly basis (Hinson and et.al., 2019).
Direct Marketing – This refers to advertising the product and service through direct
marketing which include e mail, making calls, promotion on social marketing. It ensures
increasing the engagement of costumer by providing them regular updates and information about
the product. It identify and pitch target costumer and focus on convincing them. This strategy is
become more popular nowadays as almost all the costumer were active on social media platform
and it is opportunity for company to connect them and giving new updates about their products.
In context to Virgin media, it uses directing marketing with their customers by updated about
new services and deals. For example if there is any offer and something new for their customers
the company inform them via messaging and call them and let them know if they want to update
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their service to something better. Company uses this tool by messaging, email and call customers
for their offer what they get (Parowicz, 2019).
Public relations – It refers to building positive brand image of product or company in the
eye of public. Company nowadays acquire PR to create good news and information about
company through their reviews and website and try to focus on create trust of costumer which
will directly help the company in its growth and success as costumer are important part of
company. In this today's market scenario every company focuses on building costumer
relationship. In context to public relations strategy Virgin group uses this by social networks
by to know customers feedbacks for the service they use. For example they promote their
services on online platforms like Facebook customers or public have option to give feedback for
firm. In this strategy firm wants to aware about brand that firm is customer oriented there
feedbacks matters for firm that attract customers towards its products (Huggins and
Cunningham, 2019).
TASK 2
AIDA MODEL:
AIDA Model is commonly used by every advertiser or company to increase the
awareness of product among costumer. This is effective tool which go through from four stages
to target audiences through marketing strategies and tactics, it influencing the buying decision of
costumer.
1. Attention – This is first stage to grab the attention and convince them from their
promotion of brand awareness. They do so through putting their contents on website,
advertising on social media platform in innovative and different way.
2. Interest – It is second stage after attention they focus on their interest and implement the
same. After costumer having idea about particular product, company try to provide their
product according to their interest (Islam, 2020).
3. Desire – After developing the interest in product they will eventually want to buy desire
product and give it a try. Company have to make proper marketing strategies and tactics
to develop that desire in costumer (McDivitt, 2020).
4. Action – This is final stage of costumer, after developing that urge in costumer, they
finally buy that product and this is behavioural stage where it depends on the costumer
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that how it take the action. To accomplish this stage company strategies and planning
effect the buying decision of costumer.
In context to Virgin media, workings are performed in above describes steps of customers
in context to purchase a products. The firm looking is for its customers point of view at the time
of purchasing products. The firm is describes four stages of customers at the time of buying its
media services stages includes, attention, interest, desire and action. During these stages firm's
ideally go with customers attract attention to the brand, generate customers interest towards firms
TV, mobile and media services. Apart from this after generating customers interest it stimulus
them to want for its services and force them to once try their media services (SJacobson, 2019).
Evaluation
From the above discussion it has been evaluated that AIDA model is beneficial for
organisation as it helps to attracts the number of customers. By using the AIDA model Virgin
media is attention on customer needs what they things, create the interest regarding products and
services which are providing by organisation, this increases the desire of customers to buy the
products and services and then corrective action is taken by customers as they make the buying
decision. This can help to fill the customers demand by satisfying and increases the
organisational productivity. The disadvantages of such model is, time taken activity and not be
successful in all situation as needs and wants of customers are different who things products
from different perception that might be create the challenge for organisation to set people's mind
and attracts them towards buying decisions (Kemper and Ballantine, 2019).
PULL AND PUSH STRATEGIES
Push marketing strategy: Push marketing describes a sales tactic in which marketers
aim to take their goods to customers to customers that are not specifically searching for a product
or service, but are exposed to it by heavy advertising including such billboards, media ads and
cold-calling in the expectation that they will create a willingness to partake in the buying of the
product or service. Push Marketing is introduced through way of display ads and cold-emailing,
bringing the good or service squarely in front of the customer again in the expectation of raising
brand value and eventually creating a sale. Such as in the aspect of above mentioned company,
Virgin media they adopt such strategy in order to target those customers who are not interested to
take any service by them but can be affected due to their way of advertising.
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Pull marketing strategy: In comparison, Pull marketing depends on the fact that clients
are specifically searching for a brand for its goods or services because they are already conscious
of its credibility. In terms of advertising, the goal is to create a brand that becomes implicitly
connected to customer loyalty by intense advertisement, when goods offer value to the end
consumer. Consequently, from a digital marketing point of view, what is expected is that clients
be impacted by successful search engine optimization, pay per click tactics, websites, online
marketing and social media promotions and hence come to the business from their own volition.
Overall, pull marketing is focused on generating brand recognition and thereby increasing
custom return rates. In regards to above mentioned company, they can apply such marketing
strategy for those customers who are in search of any product and service. In comparison to
above marketing strategy, it is quite easier for targeting different kinds of customers (Kennedy
and Hartnett, 2018).
Evaluation
From the discussion of pull and push marketing strategies it has evaluated that by using
the Push marketing strategy Virgin media can reach out wider target audience and sale the
products by creating advertisements. Such marketing acknowledge their customers regarding
products and services which they have that can help to operate a business and increase the
organisational productivity. On the other side, it might be create challenge as it create higher cost
to use advertisement, make the potential customers doubt about products which are selling by
organisation. The pull strategy is also beneficial for Virgin media as it maintain the direct contact
with customers by building customer loyalty. The management can use this by creating strong
bargaining power with retailers and distributors that helps to reach the targeted customers and
develop a business effectively. This also helps to creating brand equity and brand value in
competitive environment. Oppositely, drawbacks of pull marketing strategy is, this can work
positively only when there is high brand loyalty, leading time is long and requires a high demand
for product which can be difficult for organisation to manage (Lim, 2020).
Virgin media has selected the Push marketing strategy which can help to attain the
competitive advantages in changing environment as it understand the needs and trend then
introduces its services by using trade show promotion, radios, T.V. And effective strategies
which supports to reach the target customers and increase the organisational sales and
profitability effectively (Lunde, 2018).
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CONCLUSION
From the report it can be concluded that marketing is important for all organisation as it
helps to reach the customers by offering variety of products and services. The management
should be uses different marketing strategy such as pull and push which supports to develop a
business and manage the all activities effectively. AIDA model is uses by organisation to create
the awareness between customers regarding product which are going to provide by organisation.
Promotional technique such as advertising, sponsorship, sales promotion, direct marketing, and
Public relations uses to interact with customers and make right business decision effectively.
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REFERENCES
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Lim, W. M., 2020. The sharing economy: A marketing perspective. Australasian Marketing
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Lunde, M. B., 2018. Sustainability in marketing: a systematic review unifying 20 years of
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Online:
Sponsorship of Virgin Media, 2020. [Online]. Available through:
<https://www.virginmedia.com/virgin-tv-edit/customer-exclusive/virgin-media-
sponsorship-southampton-premier-league>
Vizard. S., 2019. How Virgin Media plans to become ‘the most irresistible brand’. [Online].
Available through: <https://www.marketingweek.com/virgin-media-marketing-
strategy/>