Principles of Marketing: Components, Segmentation, and Marketing Mix Analysis

This study material focuses on the principles of marketing, specifically the components of the marketing planning process, environmental audit, segmentation, and marketing mix analysis. It explores how Hill's Vineyard plans to expand their business and attract customers for their wines and Vineyard Tour. The material provides insights into the strategies and techniques used by the organization to achieve their marketing objectives.

Principles of
Marketing
Contents

INTRODUCTION...........................................................................................................................3
SECTION 1.....................................................................................................................................3
Components of the marketing planning process..........................................................................3
Environmental audit.....................................................................................................................4
Extended marketing mix 7Ps.......................................................................................................5
SECTION 2.....................................................................................................................................6
Segmentation...............................................................................................................................6
B2C target market........................................................................................................................7
Positioning...................................................................................................................................7
SECTION 3.....................................................................................................................................8
Marketing mix Analysis..............................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
The principle of marketing is considered as important tool that facilitates the organisation in
developing various strategies enables them to achieve their marketing objectives. They are
primarily enables the organisation in promoting their products and services as well as in
managing the product by determining various changes as per the taste and preference of the
customers (Armstrong, 2018). This report is based upon Hill's Vineyard that sells a better quality
wines to the local consumers and small retailers of UK. The company is planning to expand their
business and to support this meaning of various concept related to marketing will be developed
with the help of this report. The report includes analysis of marketing environment and the
planning process along with STP strategy. In addition to this the marketing mix of the
organisation are analysed later in the report.
SECTION 1
Components of the marketing planning process
With the increasing competition and in the digital marketing era with is important for the
organisation to plan their marketing activities with the help of various components so that they
can ensure success of the business components of marketing planning process are:
Scanning of marketing environment: With the help of scanning Hill’s Vineyard can determine
the favourable and unfavourable factors within the market along with various opportunities and
threats by analysing the impact each and every external factor.
Internal scanning: It will enable Hill’s Vineyard in identifying their strength and
weaknesses along with their competencies that can give them competitive advantage for
expansion of their products to overseas customers as well as to attract for Vineyard Tour (Felix,
Rauschnabel and Hinsch, 2017).
Determination of marketing objective: This component facilitates to identify the
objective of marketing and for Hill’s Vineyard objectives behind marketing is to attract UK
based visitors and tourist to the Vineyard Tour and for the sparkling wines by entering into new
market.
Formulation of marketing strategy: On the basis identification of above component
Hill’s Vineyard can formulate strategies in context of product price place promotion so that
objectives can be achieved.

Developing functional plans: With the help of such plans specific and detailed actions
will be identified by Hill’s Vineyard so that they can turn out their strategies into objective.
For achieving the objective of expansion the Hill’s Vineyard must direct their resources
towards accomplishing the marketing objectives as it facilitates various benefits such as:
 Market orientation enables the organisation in improving the satisfaction level of the
customers as well as their loyalty. This will enable Hill’s Vineyard in competitive
advantage over others by offering high quality wines at attractive prices (Homburg, Jozić
and Kuehnl, 2017).
 Marketing orientation facilitates the business in focusing upon their priorities to
understand the expectations of the customers and prospects as with the help of this Hill’s
Vineyard can easily attract people for the Vineyard Tour.
 It also enables the organisation to increase sales, business volume, innovation, customer
satisfaction etc. as per the market requirement. With this Hill’s Vineyard can ensure the
path of business success in terms of consistency and increased income as well as market
share.
Environmental audit
An organisation need to undertake the market analysis as this enables them to identify
various opportunities and threats for them with the help of which they can formulate various
strategies and can plan for their growth. For the small organisation it is not possible to expand
their market share significantly to other nation due to this Hill’s Vineyard can plan for their
expansion in UK through online medium as well as can attract tourist for the Vineyard Tour. The
environmental audit can be done with the help of PESTLE model which is given below:
Political: The government policy and European Union alcohol policy has impact on the
breweries as they have established minimum unit pricing along with new strategies of extensive
labelling in context to nutrition information. It may affect the operations of Hill’s Vineyard while
expanding to entire UK. But policies of UK to attract visitors I will offer an opportunity what is
the concept of Vineyard tours (Brito and Harkiolakis, 2017).
Economical: Implementation of various tax and duties affects operation of organisation
such as Hill’s Vineyard. Alcohol duty imposed affected the entire industry which further
increases the prices and decreases the sales. It can have adverse impact on Hill’s Vineyard but

closure of pubs will be for them as with online medium they can easily sell their wines and can
get their tour booked.
Social: With the increasing awareness among the people and improved lifestyle in UK
along with increasing disposable income they prefer to have better quality wines over beers. This
will be an opportunity for Hill’s Vineyard to offer the same through online medium. But with
increasing interest of travelling the people can easily be attracted to Vineyard tour while due to
various health programs awareness among the customers has been increasing in context to
lifestyle risk and this can have an adverse impact.
Technological: The increasing use of social media and other platform offers an
opportunity for them to market their product and Vineyard tour. Through website or with the
help of e-Commerce sites they can easily attract customer for both.
Legal: Various legal implications are imposed on the organisation in this industry in
terms of marketing along with statutory code for various activities so that its consumption not be
encouraged. But they can promote their Vineyard tour with the help of which they can make
people aware about their better quality wines.
Environmental: The environmental implications in context to water usage are a concern
as various implications has been imposed with its use. This can affect the production capacity on
a greater but better waste management system, as well as packaging of Hill’s Vineyard, enables
them to easily manage such implications. Apart from this it will also enable them to attract
tourist they developed and manage beautiful Vineyards that brings greenery to the environment
(Perera, 2017).
The impact of competitors is significant which has to be managed efficiently by the
organisation by analysing their moves and strategies. For Hill’s Vineyard it is crucial to
determine their major competitors within the target market and it includes Langham, Giffords
Hall, Coates and Seeley etc. They have adopted technique of production of wines in small
batches as with the help of this they can ensure the quality of wine. Along with this they all allow
the visitors to come to the Vineyards but some of them have allowed to stay them for a period
with their family.
Extended marketing mix 7Ps
With various strategies such as marketing mix strategies the organisation can ensure that
they take competitive advantage over others. For expanding the Hill’s Vineyard can expand their

product range such as they can offer classic, tradition, evolution, selection, elegance, Sekt Pàlffy
(Sparkling wine) and Sekt Charmat (sparkling wine). The pricing will be considered on the basis
of cost of the manufacturing and for promoting the services the emphasis of Hill’s Vineyard
must be on sales promotion as well as public relation as advertisement is restricted for wines. To
attract the people to visit to the Vineyard the people associated with the Hill’s Vineyard can help
such as the retailers, helpers, various tour operators, restaurants etc. They process of making their
products available is through distributors and to the people who will visit to the Vineyards for the
tour (Gummesson, 2017).
SECTION 2
Segmentation
Market segmentation is the techniques with the help of which organisation can divide the
market segment into small groups on the basis of their similar characteristics. This ensures that
the people within the same group or segment will respond to the various marketing strategies of
the organisation in the same manner. It can be done on the basis of behaviour of the consumers,
their lifestyle and demographics as well as on the basis of psychographic characteristics
(Chaffey, 2019). Segmentation for UK based customers who are looking to buy wine of Hill’s
Vineyard are given below on the basis of various characteristics:
Wine for pleasure: These people will include the wine lovers and the one who collect to wind.
People are ready to spend a lot of money and they purchase it on regular basis which are unique
as well as of better quality. Such people are considered to have better knowledge of wines as
they are highly interested in it.
Wine for partying: They are the people who consume wine during parties and in such gathering
only cheap wines and a variety of other alcoholic beverages are served. No one person specific
knowledge about the quality of wine that they have been served.
Wine for dining: They are the people who have a good quality wine prepare meals and generally
share it with their friends and family at homes or restaurant. Due to regular consumption they
have little bit of knowledge about it and they are interested in knowing about more brands and
variants.

B2C target market
On the basis of identified segments one or few segments are targeted by the organisation.
Such as Hill’s Vineyard can target the people for who consume wines for pleasure and the one
who consume it with their meals. It is because such people are interested and well as knowledge
about the products along with this they take into consideration the uniqueness of the product in
comparison to others. Similarly for the Vineyard tour the people who will be targeted includes
the segment of people who consider wine for pleasure from UK and even from overseas. The
targeting strategy for them is given below:
Measurability and Substantiality: It can be analysed that number of people in the segment has
been increasing because of increasing awareness for better quality wine to satisfy the need of
people for pleasure. Due to preferred quality and uniqueness people in this segment can easily be
attracted for the tour (Robinson, 2016).
Actionability: They can be attracted to the vineyard tour through the website of the company,
public relations, magazines, blogs and social media by promoting the uniqueness of the wines
and beauty of vineyards along with an opportunity to spend time there as well as to make
purchases.
Accessibility: They can also be made accessible through is tour operators, restaurants, hotels etc.
as they directly come into contact with the tourist within UK and from other countries. Also the
distributors can enable in targeting such people because they have knowledge of them as they
have been supplying them.
On the basis of all this it can be analysed that this segment can easily and profitability be targeted
by Hill’s Vineyard.
Positioning
Positioning can be defined as a strategy with the help of which the offerings is positioned
in the market in such a manner that it can be placed in the mind of the customers as well as in the
organisation with similar products. To facilitate this the organisation need to focus upon their
unique selling proposition so that they can distinction between their product with that of the
competitors (Bessière, 2019).
Hill’s Vineyard can positioning their tour of vineyard through various social media platform
such as Instagram, Facebook, YouTube etc. as with the help of this they can target the people

who seek pleasure from wines. Also through various blogs related to travelling and visiting to
unique places that reflects the area of interest of the people.
SECTION 3
Marketing mix Analysis
Marketing mix is the marketing strategy technique which is useful in order to sell products
instead of services and also helps in brand development. It includes various elements that help in
promoting the brand and its products. The below discuss marketing mix is about Hill’s Vineyard
which deals in well known wines at the national level. Apart from this, the owner of company
believe that there wines can rival the champagne products in France with their quality to the
Overseas customers.
Elements Hill’s Vineyard
Product Many organisations pay attention on the quality of their offered products and
its features that are beneficial for their customers and helps in attracting
them. In terms of this company produces various types of wines like red,
desert, white, rose and sparkling wines. Along with this the product line
which is offered by company is classic, tradition, evolution, selection,
elegance, Sekt Pàlffy (Sparkling wine) and Sekt Charmat (sparkling wine).
Along with this the pricing of wines are general pricing and appears more
towards penetration instead of premium pricing in order to attract and retain
maximum number of customers.
Price It is considered as the most influential factor that impact the running and
functioning of company within the business environment and also describe
the amount that customers are willing to pay for the specific product. Prices
are developed by analysing the investment which is used in order to develop
the product like material competition government regulations labour and
many more (Camilleri, 2018). Currently Hill’s Vineyard use cost orientation
pricing as it is a method in which the profit objective of organisation is also
cover into the production cost and used for retailers by adding the constant
percentage mark-up. Along with this, the price range which is offered by
company for its wines are around 1,80 EUR – 15 EUR (without VAT).
Place This factor describes the location and places in which company offer their
product and that are available for their customers easily. In terms of this
Hill’s Vineyard does not use online platform as it include risk of the damage
of product and take help from the stores restaurants and hotels. The wines

and other beverages of company available at the five star hotels, wine shops
and high-end restaurants (Malhotra and Dash, 2016). Along with this it is
important for the wine companies that they are considered to be the Exotic
drinks and their offered place considered as the target market.
Promotion It is the fundamental tool to impart the product and services towards the
customers. As in many areas the open promotion and advertisement of
alcohol and beverages are restricted with the help of using mass media.
Along with this Hill’s Vineyard currently used advertisement sales
promotion and public relation method in order to promote its products.
Along with this complimentary glasses of respective company are offered
within the restaurants and bar in order to encourage customers to purchase
their product.
People This factor describes the manpower and employees of company to promote
and provide training and development to them regarding to deal with
customers and manage their queries. Along with this the manager of the
company also maintained regard of the stock ok and employees as well and
also ask them to maintain detail about their customers and offer prominent
vouchers and discounts to their customers which is useful in attracting
maximum number of customers. Despite from this training is useful for
employees regarding their performance and brand image of company that
helps in achieving competitive advantage.
Process It is also considered as the important procedure which is followed by the
respective company in order to offer their products and services. Despite
from this company also concentrate in their distribution channels that plays
an important role to reach out the products of company to their potential
customers by considering the profitability and sales. In terms of this Hill’s
Vineyard only manufacture products and deal with wholesalers and retailers
and does not offer their product directly to customers (Išoraitė, 2016).
Physical Evidence It is considered as the last factor of marketing mix plan as it put Emphasis
towards the physical appearance of the store and Company and for this the
retailers’ plays an important role in order to represent the products of
respective company. In terms of this company also plays an important role
towards the packaging of its product as the packaging helps in attracting
customers at the first sight. Along with this appearance of products plays an
important role in order to attract customers and identify their reactions.

CONCLUSION
It is concluded from the above report that an organisation need to analyse various internal
and external market through environmental audit so that they can determine various
opportunities and threats for them along with their strength and weaknesses so that they can grab
the opportunities by minimising the impact of threats. For organisation planning to expand their
business it is important to identify different segments that they can target on the basis of their
interest in the offerings of the company and to support this they need to formulate various
marketing strategies with the help of elements of marketing mix.
REFERENCES
Books and Journal
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Bessière, D., and et. al. , 2019. A vision of re-distributed manufacturing for the UK’s consumer
goods industry. Production Planning & Control, 30(7), pp.555-567.
Brito, T.L.D. and Harkiolakis, N., 2017. Influence of UK economic and market policies on a
small wine merchant. International Journal of Teaching and Case Studies, 8(1), pp.29-
45.
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Chaffey, D., 2019. Digital marketing. Pearson UK.
Felix, R., Rauschnabel, P.A. and Hinsch, C., 2017. Elements of strategic social media marketing:
A holistic framework. Journal of Business Research, 70, pp.118-126.
Gummesson, E., 2017. From relationship marketing to total relationship marketing and
beyond. Journal of services marketing.
Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
Science, 45(3), pp.377-401.
Išoraitė, M., 2016. Marketing mix theoretical aspects. International journal of research
granthaalayah, 4(6), pp.25-37.
Malhotra, N.K. and Dash, S., 2016. Marketing research: An applied orientation. Pearson,.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Robinson, P., and et. al. , 2016. Operations management in the travel industry. Cabi.