Principles and Practices of Marketing

This document provides an overview of the principles and practices of marketing, focusing on marketing strategies and the promotional mix of ALDI. It discusses target marketing, segmentation, and positioning. Find study material and solved assignments on Desklib.

Principles and
practices of marketing-
ppm

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
1.1 Background related to marketing strategies of the company ...............................................3
2.0 Promotional mix and activity of ALDI.................................................................................5
TASK 2..........................................................................................................................................11
Theoretical aspects of promotional mix in company................................................................11
CONCLUSION .............................................................................................................................14
REFERENCES .............................................................................................................................15

INTRODUCTION
The background of effective principles of marketing is a form of business strategy which
provide guidance about to create and gain the customer loyalty and making difference between
product selling, manufacturing or disregard by the consumer. As it is having the similar objective
of marketing where to assembling and procuring the specific company's products and services.
To reduce the lack between customer loyalty and product providers there is a tool of 4Ps of
marketing mix such as Product, Price, place and Promotion that make understands the customer
needs and wants to provide them satisfaction(Gbadamosi, 2019).
As opting the organisation from retail industry as ALDI Company which is Germany based
multinational discount venture, they have 10,000 stores in across 20 countries with estimated the
annual revenue of 50 billion Euros. Their headquarters is in Essen, Germany and their products
and services as grocery and household essentials. The topics which will covered in this report are
first is to prepare a marketing promotional strategy in context of company through internal and
external environment concerned, Second, to explain about the marketing theories from given
models in the brief such as Push and Pull strategies, the communication process and AIDA.
TASK 1
1.1 Background related to marketing strategies of the company
ALDI is one of the largest common brand family- owned discount supermarket chain in
the Germany that has around 10000 stores in almost 20 countries with a annual turnover of the €
50 billion. It was proposed by the two brothers that are Karl and Theo Albrecht in 1946. the
company deals in the varieties of range of products that involves groceries and household
appliances. It is also the largest wine retailer in the Germany that can earn high amounts of
profits and revenues. ALDI is one of the best organisation that is working with a entitled mission
in which it describe the aspiration to set the standards for the foods and retailing so that they
can explore their market position in the North group. They basically work with the three core and
essential values that involves simplicity, reliability and responsibility. In 2001 they launch a new
slogan that involves the smarter shopping that means a good different(Salvo, 2015).
ALDI follows the approach related to target marketing for enhancing their sales and
profits by gaining the competition to differentiation the offerings by satisfy the needs and wants
of the customers. This terms helps in relating the products and services to the market and helps in

building connection with the company to the people. It also provides more opportunities to the
organisation that helps in enhancing the market share. This targeting approach can be divided
into further three aspects that can be shown below.
 Targeting- This term is related to the effective marketing plan in which company can
divides the market into different small segments that helps in gaining high profits and
revenues. In case of ALDI, they can targets the markets in the way of sex, life, age,
income, social status. As it is work with different portfolio and this term helps in easily
targeting the customers as per the needs and demands of the society(Torabinejad, Fouad
and Shabahang, 2020).
 Segmenting- In this framework company can divides the profits into the different groups
so that they can easily target the customers and society and saves the time and money. In
this ALDI can identify the features of every segment so that business may earn higher
profits and revenues. It helps in capturing the opportunity that already raised in the
market. ALDI is famous for their cloth so that it is essential for the manager to lead the
market related to groceries so that they can enhance their market share and also retain the
customers for a longer period of time. They focus on their groceries products more rather
than focus on other product portfolio this helps in increasing the likeness in the
marketplace(Alserhan, 2015).
 Positioning- It is the last aspects of this approach in which firm make the plans and
strategies to place their high position within the marketplace by7 creating the awareness
in the customers mind so that they are attrcatwed towards it and earns a high market
share. In this company can adopts the various promotional tools so that brand position is
to be strong in the market.
ALDI also adopted the application related to the product marketing in which they can
made the differentiate and creative tactics for attracting the large base of customers so that they
can earn high profits and survive in the market for a longer period of time. It also helps in
increasing the brand image of the company.

2.0 Promotional mix and activity of ALDI
ALDI is the common brand in Germany that is a family-owned discount supermarket that
is dealing in different range of products such as groceries and household appliances for the
middle and rich class people. This is a famous supermarket chain that is operated by two brothers
that is Karl and Theo Albrecht in the 1946. Promotional mix refers to an essential term that is a
combination of the various promotional variables that is chosen by the marketers for enhancing
the growth and profits of the company by re4aching their overall goal within the market. It is
inculcated as a subset of the marketing mix elements. Use of effective promotional tools helps in
the success and growth of the business venture. Due to adopting this promotional tool ALDI can
enhnace their market share by making a loyal customers. Marketing consultant of the ALDI can
follow the various promotional tools and tactics so that they can measure high profits and
revenues. It can be shown below(Slack and Brandon-Jones, 2018).

2.1 Advertising Transit advertising- It refers to an effective model that shows the advertising is placing
on the public transportation or transportation areas. That means in this advertisement can
be placed anywhere from the side of the bus, taxi, train, subway cars, bus platforms etc. It
is an static type of advertisement that is generally not focus by the people but sometimes
it creates a great impression on the customers mind. It also helps in enhancing the
customer base for ALDI by seeing the ads on public transport. It generally attracts the
visitors and middle class people(Oswald and Oswald, 2015).
 Retail advertising- This defines those advertising term in which ads can be placed in all
the locations such as malls, stores, shopping centre etc. that helps in driving awareness
and create interest of the customers towards the products and services. This will place a
greate impact on the people eyes due to this large number of people get attracted towards
the offerings of ALDI.
2.2 Public relation Reception areas- It is that area that was present in the company and create a first
impression of the firm in front of the customers because at here organisation and
customers meet for a very first time. Ii will create a attraction in the people mind who
visit the stores for buying the goods and services. IN case of ALDI, this promotional
strategy is very effective because organisation can create a healthy and reflective
atmosphere at the stores so that visitors are attracted and it helps in enhnacing the image
of the business firm(Resnick and et. al., 2016). External spaces- It defines the outer area of the organisation that simply means outside
environment. In this ALDI can adopts the various promotional tools to advertise their
products and services of the business enterprise in their outer environment. This term

helps in achieving the objectives related to higher profits and revenues that shows the
growth of the company. Some external spaces can be shown below in case of ALDI.
◦ Billboards- It refers to that big external promoting structure that is typically found in
the high traffic area that means a crowded area or a busy road. This advertising tool
helps in creating a strong brand image by advertising the products and services that is
offered by the ALDI. In this manager of firm can use the advanced technology to
show creativity in influencing the customers for choosing their offerings. In this
ALDI can use their logo and effective designs related to their groceries products in
the boards for attracting the large base of customers.
2.3 Sales promotion
 Customers facing touchpoints- It defines that term that is used to gaining the attention of
customers by ALDI. In this they can adopts the different strategies that can directly touch
the mind of the people in the society about buying the goods and services that is offered
by the firm. It is based on the fact that the people wants something and choose those
goods that is needed and seen by them many times. It is very essential for the ALDI for
building a strong image so that they can get higher profits and returns. Touchpoint shows
the total time that reflects how much customers are engaged with the social media and

founds the promotions of the company. For this ALDI gain the profits and sustainability
within the competitive marketplace. It involves some frameworks that can be shown
below.
◦ Stores- It refers to the particular place or area by the organisation where the company
offers their different goods and services to the users that is known as stores. In case of
ALDI, manager can apply the various promotional activities so that they can grab the
attention of the consumer by using discounts, sale, etc. and also apply some posters
on the stores that is attracted and creative to capture the audience attention. This
posters includes some information about the products and services so that it could be
spread in the market very frequently. In this ALDI also use television bulletins where
videos related to the offerings of company can continuously displayed. This will very
attractive for enhancing the customer base because it is memorable by the people for
a longer period of time. This helps in creating high market demand due to this firm
will get more revenues to create a strong linkage with the peoples(Gupta and Nair,
2020).
◦ Offices- ALDI has number of offices at different place where they can supply their
goods and services to their various stores according to their nearby locations. This
place shows the working culture of the company, their rules, regulations and
standards so that task can be completed and achieved on the specified time period. As
ALDI, can use the various tools like banners that would at the office building so that
large number of people get attracted from this.
2.4 Personal selling
It refers to that term which is use to sell the goods after meeting the customers face to
face. In case of ALDI, they can promote their products and services by their attractive attitude,
appearance etc. that shows the speciality of the offerings and also helps in providing knowledge
regarding their goods. This tool helps in encouraging people to buy the same and due to this
company will enjoy large amount of profits and revenues. In this they can attracted the peoples
by giving them sample of the goods.
2.5 Direct selling
 Digital Platforms- It is the best platform for the today's world where people are more
engaged with the use of internet and digitalisation. This platform is helpful for the ALDI

where they can advertise their brand and products via internet that is connected with
various electronic gadgets. It is a place where company can connects with the larger
accidence in all over the world. It is an effective marketing that is done for gaining more
market share and beating the competition within the industry(Luca, Hibbert and
McDonald, 2016).
2.6 Internet marketing
 Websites- It refers to an online platform where organisation can sell their products and
services through their official websites. It shows the various web pages and content that
is related to the general domain that is published on one website. It is helpful for ALDI to
enhance their customer base in all over the world with the use of their official website i.e.
aldi.com. By using this tool business enterprise make their position strong in the global

market because people easily get the products. It also helps in saving their time to visit
the stores.
 Social Media- It is the famous and trending platform that is adopted by the ALDI to
promote their offerings and to strengthen their market position. It includes the various
terms that such as Facebook, Instagram etc. where company can share their goods and get
the customers review by their likes, dislikes, comments and share(Moses, 2017).
2.7 Sponsorship News article- It is the information that was published by the company about the goods
and services that they offered to the people of society. It reflects the present news about
the ALDI that helps in enhancing the knowledge of the customers about their products
portfolio or the company environment. It helps in increasing the brand image due to
which firm will sustain in the market for a longer period of time.
 Analyst report- It is the report that was prepared by the company analyst so that they can
maintains their brand image within the marketplace. It shows the ideas of investing in the
activities that gives the positive results. It also research the market so that analysation of
customers needs and wants can be done easily(Rundle-Thiele, 2015).
CRM is an essentail technique that is adopted by the company for maintaining the strong
relationship with their customers and people who are living in the society. ALDI can adopted this
tactics for gaining the competitive advantage. In this they can offered the products as low cost
with high quality so that large base of consumers get attracted.
STP model involves segmenting, targeting and positioning and in this ALDI can choose
the targeting strategies because it is very essential for targeting the customers because of gaining
high profits and revenues. As they targets the all age groups people who are conclusion about
their health and status.
Away from stores types of promotional tools includes the television, billboards, radio
etc. where ALDI can advertise their goods and services to cover the larger audience with a
message of getting quality products that builds a health where they generally targets the health
conscious people at any age group. So that they can earn high amounts of profits and
revenues(Baron, Zaltman and Olson, 2017).
Assessment criteria- This promotional criteria should be assessed the various
promotional tools that is used by the ALDI for enhancing their market share and base of the

customers. This promotional mix involves the varieties of aspects that shows personal selling,
direct marketing, internet marketing etc. all this terms helps in making the team of loyal
customers in all over the world where company have their existence. It also helps in beating the
competition within the marketplace and encouraged customers to buy the same. It also helps in
measuring the success and profits of the company.
TASK 2
Theoretical aspects of promotional mix in company
It includes the various theory that is used to explain the different approaches of the
promotional mix that is adopted by the ALDI for gaining their market share and customer base.
With the background of the ALDI several theories can be shown below.
1.0 AIDA
1.1 Definition of model
Illustration 1: source: AIDA, 2020
AIDA is a combination of the attention, interest, desire and action that is used by the
companies for marketing the products so that consumers go through it and purchase the goods
and services. It is proposed by the American businessman E. St. Elmo Lewis since 1998. This
model helps in engaging the customers into the companies products and resources. It helps the
people of society that are the customers by taking the correct decisions regarding the purchase of
the groceries and home décor of ALDI(Ventre and et. al., 2019).
1.1 How organisation apply AIDA model

This model is applied by the companies on the basis of four aspects that can be shown
below in context of ALDI.
 Awareness- It refers to that stage that is used by the organisation for spreading and
creating awareness into the marketplace about their offerings that is introduced by the
company ALDI so that customers get full knowledge about their purchasing that they
purchase from the company stores.
 Interest- After aware about the offerings, on this stage interest is generated where
peoples are encouraged towards the buying the goods and services.
 Desire- This aspect shows the emotional connection of the customers that is generated
after building their interest towards the products. It reflects weather consumers like the
product or wanting the same or get attract towards the goods that is offered by the ALDI.
 Action- It shows the interaction of the buyers with the ALDI by selling and delivers the
products the products to them if they shop online. After this they can engage with the live
chats and many other tools that helps in taking reviews from them.
1.3 Evaluation of effectiveness
For a very long period, this model is adopted by the manager of the ALDI because it
helps in knowing the customers taste and preference and also helps in showing the accurate data
regarding the market trends that helps in getting more profits and revenues. This term helps in
expanding the business units in the different directions that helps in enhancing the high growth
of the company in the competitive market industry. By using this model ALDI can enhance the
interest of the people towards their range of the offerings by providing the extent knowledge of
their features and specification. This helps in maximising their base of customers in all over the
world where they operates their business. In this desire showing the likeliness of the people of
the goods and services so that they can hence their brand image into the market(Carter and et. al.,
2017).
2.0 Push and pull strategies

Illustration 2: source: push and pull strategy, 2020
2.1 Definition of model
It refers to that strategic model which represented the logistics and supply chain
management but it is basically used as a marketing tools generally in distribution business. This
techniques is used by the ALDI to enhance their sales and profits by targeting the market. It
includes two ways in which push shows that strategies where company can push their offerings
by creating awareness and pull strategy is that which is generally used by the ALDI where
customers come automatically and buys the goods that are introduced by the firm(Manea and
Purcaru, 2017).
2.2 How company apply this model
The core logic of adopting push and pull strategies is to attracts the consumers towards
the offerings into the marketplace in a very efficient and effective manner. It helps in making the
loyal customers for the business enterprise by passing the loyalties from consumers to
consumers. In case of ALDI, company majorly adopts the push strategy for gaining more and
more revenues and gaining the large market share. In this suppliers and manufactures collected
and produces the goods as per the requirements of the customers so that they automatically
attracted towards the company offerings. It also help in gaining the faith of the people and
attraction towards the business venture products(Vos, 2015).
2.3 Evaluation of effectiveness
By analysing the above strategies it is to be evaluated that if the ALDI adopts the pull
strategies that they attracts the customers themselves due to this company can gets the consumers

on the daily basis. Due to this ALDI can offers the quality and quantity products at the
reasonable price so that large base of people get attracted towards it in all the globe where they
having their stores and existence. It also helps in strengthen the bond with the company and
customers. It involves the various benefits regarding earning higher profits and market share that
helps in balancing the business environment(Carter and et. al., 2017).
It is to be analysed that ALDI can adopts the use of both the models i.e. AIDA and Push
and pull strategy because they both helps in gaining the attraction of the people and enhancing
the profits and revenues for the longer survival of the business enterprise. As the company are
working in the international market due to this applying these theories gives the effective and
efficient results.
Key performance indicator- It refers to that technique through which ALDI can
measure the performance of achieving the task in an effective and efficient manner by following
proper set rules and standards. It is a appropriate tool that helps in attaining the goals in an
suitable way.
Assessment criteria- Applying this approaches helps in gaining the competitive market
that showcase the improved performance of the company internal resources. In this ALDI can
adopts the push and AIDA strategies so that they will easily create awareness about the products
and attention of the customers so that firm will maximise their market share and growth for a
longer period of time.
CONCLUSION
From the above explained report it is to be concluded that the principle and practice of
marketing is an essential term for gaining more market share by attracting the large base of
customers so that firm will sustain in the marketplace for a longer period of time. It inculcates
the various terms that shows the background of the ALDI which is the famous family owned
supermarket in Germany. Further it helps in enhancing the knowledge related to the various
promotional tools that involves advertising, personal selling, sponsorship, internet marketing etc.
that helps the business to maximise their profit margin and growth by attracting the customers
and making them loyal for the company. Further it inculcates the theoretical aspects of the
promotional mix by applying the two effective models such as AIDA and push and pull strategy
so that there applications helps in enacting the profit base of the business enterprise. At last

critically evaluate both models that gives the solutions and recommendations to the problems
that was arising in applying this approaches.

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