Principles and Practices of Marketing

Explore the principles and practices of marketing in this comprehensive study material. Learn about the promotional mix, BT Group's marketing strategies, and the AIDA model. Get insights into the market share, revenue, and employee analysis of BT Group. Discover the different tools and techniques used in the promotional mix, including advertising, public relations, sales promotion, and more. Understand the importance of Porter's generic strategy, STP and CRM, and digital marketing. Gain knowledge about the AIDA model and its stages - Awareness, Interest, Desire, and Action.

PRINCIPLES AND
PRACTICES OF
MARKETING

Table of Contents
TASK 1............................................................................................................................................3
Background.................................................................................................................................3
Promotional mix..........................................................................................................................5
TASK 2..........................................................................................................................................11
Model 1- AIDA.........................................................................................................................11
Model 2- Communication model..............................................................................................13
REFERENCES..............................................................................................................................16

TASK 1
Background
The BT Group plc is a company which is a British multinational telecommunication
company which is was founded in the year 1969 and is headquartered in BT Centre, London,
UK. The company operates in more than 180 countries and is the largest provider of services
related to telecommunication sector (Gbadamosi, 2019). The company is having different types
of subsidiaries such as BT Global service, BT Consumer division and many other subsidiaries
providing services in and catering need of around 18 million of people. The company deals in a
wide range of services and products which includes mobile telephony, broadband internet, digital
television, home security, telecommunication equipment, supply chain management, fixed- line
telephony, fibre- optic communication and many other different types of services to consumer all
over the world. The company provides its product and services all over the world and also run its
own trunk network, local loop connection and telephone exchanges.
(Source: Market share held by mobile operators in UK 2018, 2020)
With the above graph it is clearly evident that company BT is having largest share of market in
year 2018. From the above graph it is visible that 28 % of total market share is being held by BT

and O2 comes second that 26 %. With the assistance of above diagram it is clearly admitted that
with respect to market share BT is the largest in having the market share and is most popular
company in field of telecommunication.
Analysing revenue of the company is the most important aspect when it comes to analysing
position and profitability of company. Thus, for the year 2020 profit of company was £22824
which has decreased as compared to 2019. Since 2008 revenue of company was on a declining
trend but since 2016 the company has started to gain its position again and thereafter profits of
company increased.
(Source: Adjusted revenues of BT Group from 2008 to 2020, 2020)
Analysis of number of employees is also very essential for the company when they have to
assess their working capacity. If the number of employees are high, then it means that company
is having good sort of operations and this is beneficial for the company. In the year ending 2020
total number of employees in BT Group all over the world was 105.3 wherein 82.6 were UK
based and remaining 22.7 were non- UK based.

(Source: Annual report of BT Group, 2020)
Promotional mix
The promotional mix is a one of the P from marketing mix that is 4 Ps of marketing. For
the company to be successful defining the promotional mix is very essential as this includes the
way in which company will promote the product and services in highly competitive market. For
BT to successfully operate in highly competitive market it is very essential for them to
effectively design their marketing mix and this includes the following-
Advertising- advertising is a type of promotional tool under which company
communicates the features and utility of product to the consumers (Xu, 2017). The major
purpose of advertising by a company is to persuade consumer to buy the product and services of
the company among the consumers. Under the advertising strategy of BT Company is shifting
from use of celebrities and hyperbole to building of trust among the consumers.
Public relation and publicity- public relation is also a tool of marketing and promotion
which is used in order to maintain goodwill and market share within the company. Under this

method company uses a third party communication channel and convey the information and facts
relating to product and service which company offers. For this BT Group mainly focuses on
strategy of enhancing online presence of company. The major reason for the use of this strategy
is that in this current competitive and modern world all the consumer has become advance and
for this it is essential to have online presence. Thus, with help of online sources company try to
maintain relation with public and consumers.
Sales promotion- this is also a tool in effectively promoting the product and services of
company. Under this technique the company tries to persuade or influence the potential and
target consumer to purchase the product (Andronie and et.al, 2019). This technique is suitable for
long term loyalty of consumer as this includes different strategies like free gifts, samples,
exchange schemes, bundle discount, festive discount and many others. For this BT Group plc
uses the technique of loyalty card program for their consumers. Under this company allow the
consumer holding card to redeem the points and in exchange of it get other exciting gifts and
other things.

Events and experiences- under this type of promotional tool, company organizes an
event and then with help of that event try to promote the product and services of company
(Beede, 2020). These event can be of any type whether social event, corporate or business event
and many others. For this company makes use of sponsorship wherein company sponsor the
event with motive of promoting the brand name of company. With respect to BT Group the
company has signed a new multi- year contract with Excel Esports to become their partner. This
is done with the intention that this will improve the branding of company and will increase
market share and knowledge pertaining to company among the consumers.
Personal selling- this is another technique of promotion wherein company makes use of
people as a sales force in order to meet consumer face to face and sell product and services of
company (Simão and Lisboa, 2017). Under this people are hired in company who are having
good communication and interpersonal skills. The major reason underlying this fact is that if the
sales person will not be able to communicate in effective manner then they will not be able to
manage the sales.

Direct marketing- this is another type of marketing or promotional tool wherein company
directly provides information relating to company, its product and services directly to the
consumer. This method does not involve any of the middleman or intermediary in the promotion
of product and services of company. For the purpose of direct marketing the company has
appointed Wunderman UK for direct marketing.
Interactive marketing- this is another major type of promotional tool under the marketing
mix of company. This is referred to as one to one marketing practice which is generally centred
over consumer on individual basis and their action pertaining to the behaviour of consumers. For
this company provides for different types of contest, quiz calculators on basis of option selected
by consumer and many other different types of methods are being employed by BT Group for
attracting consumers.

Word of mouth marketing- this is a strategy of marketing the product and service into
the highly competitive market by promoting the product with help of talking to other people
(Hasan, 2019). This is generally used by the consumer who have used the product and now they
promote it as they have liked the liked the product and services of company. Under this company
provides for better quality product and service so that consumer like it and after using it promote
the product and services to others as well.
Social media marketing- this is another major tool in the promotional mix of company
wherein company makes use of social media platforms to promote the goods and services of
company (Efthymios and et.al, 2016). Under this company BT Group publishes its content
relating to product and services and post it on different social media websites. These are like
Facebook, Twitter, Instagram, LinkedIn and many other different online platforms. For social
media marketing the major channel used by BT Group is Facebook, Twitter, YouTube and
community forum.

Bricks and Mortar location- this is defined as the traditional street side business which
provides for product and services to consumer in a face- to- face interaction at a store. In the
current competitive world, the company is generally focusing on increasing the online presence
of product and services rather than of having the physical stores. The major reason underlying
this fact is that for this BT Group is using different distribution channels and often uses direct
mode of communicating like sending post, emails, leaflets and with help of websites (Floridi,
2019).
Porter’s generic strategy- this is a strategy which is very much essential to be used by
company as this includes the various options which are available to the company in order to run
and operate the company. Under this strategy there are three different strategies that is
differentiation, focus and cost leadership. Out of all the three major strategy assistive in
managing operations of BT Group is cost leadership. The major reason underlying this fact is
that when cost will be low then this will attract more consumer. Further the cost need not to be so
low that company suffers loss rather the product must be priced in such a manner that consumer
is satisfied with price and company is also earning profit.
STP and CRM- this is also very essential for company to effectively manage CRM that is
customer relationship management as this includes keeping consumer loyal towards company.
For this it is very essential for BT Group to choose STP in effective manner. For this segment

which is selected is local, national and international telecommunication service and companies
dealing in internet product, networked IT services and many others (Tripathi, 2018). For the
target the company majorly focuses on corporate sector, wholesale market a consumer dealing in
mainly communication only. For the positioning of product and services of BT Group they
supply the telecom services to corporate and government of country and worldwide as well
without any delay of a second. This assist company in creating better position in mind of
consumer by providing on time delivery of product.
Digital- under this the company is using all the digital platforms in order to promote the
goods and services in which company is dealing (Lewnes and Keller, 2019). This includes use of
social media for promoting the goods, digital payment system for taking and making payments.
Further the website being created of the company is also very attractive. The major reason
underlying this is that website is the place where consumer can have look of company and its
product and services. Further there are many different surveys and feedback which company can
take over these social media websites and this assist in interacting with consumers as well.
View of outside agencies- Much different organization has viewed the operations of
company and has provided their views relating to company. Many of the people state that the
operations of company are very effective and they follow all the ethical and moral principles of
running the business. Further with help of market share and goodwill of company it can also be
stated that position of company is very good and sound in highly competitive market. Thus, it
can be stated that company has sound operations and this assist company in managing and
maintaining performance and profits of company to a great extent.
TASK 2
Model 1- AIDA
This is a type of model which is very assistive in tracking journey of consumer and is the
best model for marketing. This is a marketing model as this help BT Group in understanding
need and interest on consumer and then take any action in fulfilling the need of consumers. This
model assists company in identifying the stages through which a person undergoes in the buying
process and becomes consumer of company. This is a funnel which assist consumer in deciding
at every stage that whether they have to buy the product or not and this model support the
consumer to decide that whether they have to purchase the product or not. AIDA stands for

Awareness, Interest, Desire and Action. Awareness is a stage which deals with creating
awareness of brand or company among the consumers (Gordon and Oades, 2017). Further under
the interest stage company tries to grab interest of consumer towards the product and services of
company. In addition to this third stages deals with desire that is creating a desire among
consumer that they want the product in any condition. The last is action wherein company
stimulate consumer to interact with company purchase the product and services of company.
Source
The company BT Group applies this model in understanding the mind- set of consumer and then
in accordance to it try to provide product and services by taking into consideration the
requirement of consumers. This is assistive for BT Group as this help company in understanding
the process thorough which consumer undergoes while purchasing the product or service. The
steps used under this process by BT Group are as follows-
 Attracting awareness or attention- this is the first stage wherein the company BT Group
try to create awareness relating to the product and services of company. Under this
company makes effective use of advertising as if company will continuously advertise its
product and services in market. This will acknowledge consumer relating to product and
services of company. Under this BT Group makes use of digital marketing that is using
social media in order to promote goods and services.
 Maintaining interest- under this stage BT Group tries to maintain the interest of
consumer within the product and services being provided. For this company continuously
bring in changes in product and services as per changes taking place in the market and
consumer trends. For this company continuously bring some innovation and creativity

along with product and services. This is done in order to keep the connected with
company and its product and services (Everett, 2016).
 Creating desire- this is a stage wherein company try to create such an image of product
and services of company that consumer desire to get product and service. This is done
with intention of selling the product and services in effective manner and in large
quantity. Here BT Group tries to display features and utility of product and services so
that it brings to knowledge of consumer that what are uses of product. Thus, if the
product and service will be of utility to consumer then they will desire to purchase it
(Padel, 2017).
 Taking action- this is the last stage in AIDA model wherein the company takes action to
satisfy the desire of consumer. Under this stage BT Group try to make available the
product and services which consumer is desiring in the same manner as required by
consumer.
With use of AIDA model the company is able to manage its operation and performance in
effective manner. This model is of much importance to company as the number of consumer has
increased after application of this model. Further over social media the number of followers has
increased and post relating to consumer sharing their views also increased. For AIDA model to
be successful the most important KPI is the number of consumer. This is particularly because of
the reason that when the AIDA model is implemented successfully then surely this will increase
number of consumer. Thus, for measuring success the relevant KPI is the number of consumers.
Model 2- Communication model
The communication is the most important aspect in success of company as if
communication will be clear and understandable then operations of company will not take place
in effective manner. The major reason underlying this fact is that communication is defined as
the exchanging of information and facts and figures relevant for better performance of business.
Hence, for managing communication BT Group make use of Berlo communication model which
is also named as SMCR model. This model of communication takes into account the emotional
aspect of message as well and includes four stages that is source, message, channel and receiver.
This model is applied in BT Group in the following manner-
 Source- this is referred to as source where the message has evolved and generally it is the
sender of message. Here the information or message which sender wants to communicate

is transferred with help of effective communication skill, proper knowledge and attitude
and with respect to culture and social system prevailing in company. All these things are
essential to be present along with message as if these things will not be ensured than this
will not assist in proper communication (von der Heidt, 2018).
 Messages- this is the process of encoding where individual try to convert thought in
words and convert it in some meaningful sentences. For this BT Group need to make sure
that the content of the message is not of very tough language or it is not properly framed
then this will lead to miscommunication. Further it is responsibility of BT Group to make
sure that element in message is proper and nor involves any double meaning word or any
improper words. For this it is essential that BT Group make proper use of verbal and non-
verbal communication skills in effective manner (Massiera, Gilmore and Sellami, 2018).
Also, it is essential for BT Group to ensure that structure of message is proper and in
sequence because if any element will not be in place then it can lead to
miscommunication.
 Channel- this is the next stage in Berlo model of communication and it is the major part
of whole communication process. The reason underlying this is that if medium through
which message is to be delivered is not selected in proper and effective manner then this
will affect the whole communication process (Guenthner, 2020). Hence, it is of utmost
importance for BT Group to ensure that medium selected is appropriate and for this they
generally prefer either verbal communication or written communication.
 Receiver- this is the last stage of Berlo communication process wherein the message is
being received by the intended person. Hence, in this stage the receiver tries to decode
the message in their own language and try to understand the message and if the message
is being understood in proper and effective manner then this is said that communication
has been successful. If not, then receiver try to communicate back to sender to understand
the message (Ewel, 2020).

(Source: David Berlo’s model of communication. 2017)
This model is effective in BT Group as without communication the company cannot
work and if communication will not be clear than this will have a great impact over the working
and performance of company. Hence, for effective working of company it is very essential for
BT Group to effectively communicate with everyone and even with external stakeholders and
parties relating to business.

REFERENCES
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Online
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http://jayaseelansr.blogspot.com/2017/07/david-berlos-model-of-communication.html >
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operators-united-kingdom-uk/>
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https://www.mrs.org.uk/pdf/bt.pdf>