Principles of Marketing (Distinction Criteria) - Desklib

This article discusses the marketing planning process, PESTEL analysis, and marketing mix for Immune Booster soft drink. It also covers B2C and B2B market segmentation and targeting methods for the B2C market. The article is relevant to the Principles of Marketing course.

Business
Principles of Marketing
Assignment

Table of Contents
Principles of Marketing :............................................................................................................3
INTRODUCTION......................................................................................................................3
Section 1.....................................................................................................................................3
Explain the components of the marketing planning process and outline the marketing
context for the new soft drink products with particular reference to the role / importance of
adopting a marketing orientation and its application to the business....................................3
Carry out a brief environmental audit in the form of a PESTEL analysis for the new soft
drink ensuring that you a detail specific market related facts that are fully referenced........6
Outline the expended marketing mix 7P's and explain how the extended marketing mix
contribute to effective marketing planning............................................................................9
Section 2...................................................................................................................................10
Explain how the market for the new soft drink product might be segmented for customer
(B2C) and business (B2B) market.......................................................................................10
Discuss targeting methods that could be used for the B2C market and who you would
primarily target with this new product in terms of characteristics......................................11
Explain what is meant by the term 'positioning' and suggest how the new soft drink
product would be positioned in minds of targeted market..................................................13
Section 3...................................................................................................................................14
Marketing mix analysis.......................................................................................................14
CONCLUSION........................................................................................................................18
REFERENCES.........................................................................................................................19
Online-......................................................................................................................................20
Principles of Marketing :

INTRODUCTION
Principles of marketing is basically a combination of various rules and regulations
which is utilized by organization for keeping transparency in their business (Grewal and et.
al., 2020). The name of their new soft drink is Immune Booster which is made up of natural
ingredients with zero sugar and no added colour and the selected location for launching their
new product is Denmark. The report will cover explain the component of marketing
planning process and outline the marketing context for the new soft drink. It further covers
brief environmental audit in form of a PESTEL analysis for new soft drink product ensuring
that you detail specific market related facts.
Section 1
Explain the components of the marketing planning process and outline the marketing
context for the new soft drink products with particular reference to the role /
importance of adopting a marketing orientation and its application to the business
Marketing planning process is basically a procedure or technique which is used by
company for run their activities in systematic manner.
 Market Research: - This component is being considered as the backbone of the
marketing planning process (Appel and et. al., 2020). In context to the organisation of
Immune Booster, management first have to identify the buying habits of the Denmark
customers and analyse the demand of the healthy juice in the market.
 Market Strategy: - this is basically the core of the marketing planning process
(Hodgkins and et. al., 2019). Social media methods, direct mail, email, messages help
them in attracting the huge customers base for the healthy fruits juice.

 Budget: - this is basically the plan to spend on the marketing of the product launch in
the market. The budget for the Immune Booster has been discussed below: -
Particulars Cost( Kr.)
Advertising 1500
Human resource 2000
Research 1600
Promotional 2500
Importance of adopting marketing orientation and its application
There is various importance for adapting marketing orientation and its application by
organization. Those importance of adopting marketing orientation and its application has
been discussed below: -
 Increasing sales: -In aspect of increasing sales, management of Immune Booster
needs to focus on providing high quality product to customers according to their
needs and desires (Loder, Rayhill and Burch, 2018).
 Market orientation is the customer centric approach to the product design where
companies mainly focus what their targeted customers prefer and demanded for the
new product (Shaltoni and et. al., 2018). Here, the main aim of companies is to satisfy
their targeted customers. In context of Immune Booster soft drink, it can adopt
product orientation which basically focuses on the quality and performance of
products and services. The main goal of this approach is to adopt innovation and
continuous improvement. Here, the new product is launched to solve the existing
problem of the customers and recently the COVID disease which is caused by Corona
virus. The soft drink will develop strong immune system of customers which further
help them to fight with various other diseases like illness, tiredness and many others.
Here, the companies maintain good relationship with their customers and help them to
meet their needs (Karpavicius and Balezentis, 2021).
Carry out a brief environmental audit in the form of a PESTEL analysis for the new
soft drink ensuring that you a detail specific market related facts that are fully
referenced
Environmental audit is a type of measurement tool which analyse the current environment
of a business and the opportunities to achieve success.
PESTEL Analysis -

 Political – It consist of government policies, government stability, trading restrictions
and many others (Tsangas and et. al., 2019). In context of Denmark, they are having
low or no restrictions on their trading activities. Secondly, Denmark are having good
relationship with their neighbouring countries and other countries in the world which
support them for the growth of their business.
 Economical – In respect of Immune Booster, due to occurring fluctuation in currency
rates regularly the authority of this firm is not able to enhance the sale of new product
effectively in Denmark. Therefore, for overcoming this issues management need to
fix competitive price in their goods and services. In addition to this, the economic
condition of the Denmark is 356.08 Billion US Dollars in 2020 (Denmark GDP,
2022) as compared to others nations.
Figure 1: - PESTLE analysis framework, 2022
 Social – In relation to Immune Booster, management must provide unique taste and
flavours to users according to their requirements. In context of Denmark, the
customers over there are more concern about their health and they prefer to consume
healthy eatable products and beverages specially after facing COVID disease.
 Technological – Due to the effective use of various apps and technology company
easily enhanced the reach of their goods and services to all types of users in Denmark
effectively (Lahtinen, Dietrich and Rundle-Thiele, 2020). In context of Immune
Booster, the company can use various high quality of tools and machines to design the
bottles of the product and make the product fresh for last long.

 Environmental – In context to Immune Booster, due to providing these type of
healthy product to users the goodwill of this firm is easily sustained in new market for
long time. Secondly, the company is also focused to make their packaging system
eco-friendle by packing the soft drink in those bottles which can be easily recycles or
decomposed. It is also helpful for the company to use aluminium and tin plated steel
for their small quantity of soft drinks like 100-250 ml. Legal – In context to Immune Booster, they are required to follow all rules and
regulations as per the laws and legal obligations implemented for Denmark
organisations. This is important for them to analyse the employment law implemented
in Denmark and follow them appropriately which further help them to gain the trust of
their customers as well as to gain the trust of their employees.
Relevant micro-environmental-
 Dominant competitors within the industry- The companies or competitors who has
the capacity to work alone and dominate the whole industry is known as dominant
competitors. Real and Tropicana are two brands which are one of the biggest
competitor of Immune Booster soft drink because they are having high brand name
with natural range of juices of fresh fruits. They also guaranteed for not adding sugar
and added colours for their juices.
 Recent competitor activity- Coca-Cola, Red Bull and many others can play a
important role for creating tough competition for Immune Booster. Coca- Cola is one
of the most chosen soft drink by customers nowadays which is having huge market
share. They are having various diversification of their product like Coca-Cola soft
drink, Coca-Cola energy drink, Coca- Cola light, Coca- Cola zero sugar and many
others. They are having zero sugar drinks for targeting their health conscious
customers within the market. They are also having effective promotional activities to
aware their customers about their products.
Outline the expended marketing mix 7P's and explain how the extended marketing mix
contribute to effective marketing planning
The marketing mix is a set of tactics or actions which is utilized by organization for
promoting their product and brand effectively in market (Nikbin and et. al., 2021).
Extended marketing mix is the combination of some marketing elements which are
linked with each other to help the company to achieve their marketing strategies

appropriately. There are 7 elements of marketing mix like product which will define the
characteristics and benefits of the offerings which are offered to customers within the market,
price is the monetary value of the product, promotion is the way through which company
will aware their customers and place is the location at which customers will arrive to
purchase the product of company (Camilleri, 2018). The further 3 elements of marketing mix
are people, process and physical evidence which are as must as important as other 4
elements.
The extended marketing mix can help a company to prepare a effective marketing
planing because here, they conduct research about the market and their customer's preference
toward 7 P's and then decide their strategy. For example, in context of Immune Booster, they
are planning to target Denmark which means a company is required to conduct research about
the type of soft drink is preferred by customers of Denmark and what are their income
distribution level to set price of the product. The company also analyse the tools which are
mostly used by Denmark customers to aware them about their offerings and many others.
Hence, this is how these 7 elements of marketing mix will help Immune Booster to prepare
appropriate marketing planning for the success of their product launch in new market.
Section 2
Explain how the market for the new soft drink product might be segmented for customer
(B2C) and business (B2B) market
In STP analysis Segmentation is defined as the process of dividing markets into sub-
sections on the basis of few features and characteristics to analyse which segment is going to
targeted by company to gain high profit. Due to made effective segmentation, the needs and
desires of all customers are easily fulfilled in time (Huang and Rust, 2021).

Figure 2: - segmentation strategy.
In aspect of demographic it is related with various factors such as age, income,
marital status, gender etc. With help of considering all these factors organization easily
identified valuable and suitable customers for their product in low time. The factors which
comes under the category of geographic are country, region, state, city, neighbourhood etc.
Due to the effective consideration of this category organization take high time for short-
listing right customer (Hollebeek and et. al., 2019). The last category which is need to
consider by firm is behavioural and here customers are segmented on the basis of loyalty of
customers, use of product and the benefits where they are looking for.
In aspect of B2C, the demographic segmentation is a suitable criteria or category for
organization and their product. Because in this segmentation all categories are involved
which leads to enhance sale of their new product at maximum level for long (Cortez, Clarke
and Freytag, 2021). The feature of this type of segmentation is that here young generations
and children's are highly involved for buying this type of product. In aspect of B2B
geographic segmentation is a effective method for this firm and their product. In this way the
popularity of healthy fruit juice is easily spread between at maximum level.
Difference between B2B and B2C segmentation
B2B B2C
 In this concept consumers think about
logic in the goods and positive return
 In this type of segmentation customers
are highly focused on the benefits and

on investment .
 In B2B segmentation no type of
personal emotions are attached to the
buying decision.
quality of services and products.
 Here buying are the most emotional
decision rather than logical driven
Discuss targeting methods that could be used for the B2C market and who you would
primarily target with this new product in terms of characteristics
Targeting is the process of selecting one or more segmented groups from market
which will help the company to earn maximum profit (Jovanov and et. al., 2019). After
segmenting the market, company will decide that which group of customers will help them to
earn maximum profit and they choose that segmented group only to offer their products. In
context to Immune Booster, here the target audience is young generations, children as well as
aged people for increasing the sales and popularity of healthy soft drink because the benefits
of Immune Booster can be utilize by any age group of customers. There are few targeting
methods which can be opted by Immune Booster to analyse which group of customers can
help them to earn more profit and these methods are mentioned below-
 Use public records to determine target customer demographics- It is essential for
Immune Booster to use public records which are already available on some internet
sites to analyse and evaluate the information about customers which are essential for
them. With the help of these public records the company can analyse the age group of
customers in Denmark which are more preferred to have soft drink.
 Offer samples, gifts and special pricing- Immune Booster can also use this
technique to target their customers which is related to offer samples of their products
to different segmented groups of customers and analyse which segmented group is
providing positive feedback (6 Methods of Consumer Targeting Every Business
Should Try in 2018, 2018).
In context of Immune Booster, they can mainly target those customers in Denmark
which are preferring to maintain their health fit. For this, they can target any age group of
customers especially young generation who are more fitness freak and old generation who
focus to maintain their immune system strong to fight with illness and other diseases. The
company can also target on the basis of income level of customers, hence, they can target low
and middle income level customers.

Figure 3:- target market strategy
Explain what is meant by the term 'positioning' and suggest how the new soft drink product
would be positioned in minds of targeted market
Positioning is also a very important part of STP analysis and it is defined as the way
the company and it's products are positioning them self in market and how their customers
sees them (Alfonsius, Depari and Huang, 2021). This will also help the company to analyse
how they are required to advertise their products which will help them to reach their targeted
customers and aware them about their offerings. In context to Immune Booster, here
management need to utilize various marketing strategies for popularising their product and
services in new location within low time.

Figure 4:- market positioning strategy
Section 3
Marketing mix analysis
Due to the effective utilization of marketing mix organization easily increase the
awareness of their new product at large scale between the public of Denmark. In context to
the Immune Booster, company extended marketing mix has been discussed below: -
 Product: - This element of marketing mix will define the features and characteristics
of the offerings offered by the company (Pantano, Priporas and Migliano, 2019). In
context of Immune Booster, they are offering soft drink made up of natural
ingredients with no added sugar and artificial colour. This drinks will help the
customers to enhance their immune system which further help them to stay fit in
COVID pandemic. They are having different flavours like basil juice, turmeric juice
and many others in different quantity like 100 ml, 200 ml, 250 ml and 500 ml. They
pack their products in bottles as well as steel cans. 100 ml and 200 ml are packed in
steel cans whereas 250 ml and 500 ml are packed in bottles. The labelling of the
bottles and cans of soft drink is in two language first in English and second in
Denmark language because the product is launching in Denmark.
 Price- This element of marketing mix is related to monetary value which is supposed
to be paid by customers to buy the product and services. Pricing strategy of the
chosen product will help the company achieve their objectives and marketing
conditions because they are setting the prices of their soft drink according to the
income distribution of their customers in Denmark and the income they spend in
market. They can follow these pricing strategies-

1. Competitive pricing- Immune Booster is required to research about competitive
environment of the Denmark beverage industry to analyse the prices they use for
their products. This will help them to become competitive within the market.
2. Penetration pricing- This is the pricing strategy which can be used by Immune
Booster where they can set low prices at the initial level of launching their new
product so that they can gain more customer attention toward their new product in
Denmark.
3. Dynamic pricing- Here, the company can set the prices of the product in such a
manner which will be considered as highly flexible. The main aim of using this
pricing strategy is to target customers oven internet and sell them the products
through internet facilities.
 Place: - This element of marketing mix consist of location at which the company will
sell their products and services. In context of Immune Booster, they can sell their soft
drinks through online mode on their own website and other e-commerce sites such as
Amazon and many others. Secondly, they can also sell the range of their soft drinks to
many supermarkets so that they can target the customers of retailing stores also.
Figure 5: -Extended marketing Mix, 2022

 Promotion- This element of marketing mix consist of using those tools and
techniques which will help the company to aware their targeted customers about their
products and services and gain their attention to influence them to buy the products.
In context of Immune Booster, they can use social media marketing to aware the
customers of Denmark about the benefits of consuming their soft drink for the health
of Danish customers. Secondly, they can also use TV advertisements and word of
mouth to enhance their brand value.
 People: - This element of marketing mix refers to the importance of individuals
related to company. In context of Immune Booster, their staff members are important
for them to enhance their sales and help the company to grow well. Hence, they must
train their employees on regular basis to enhance their skills for organisational
growth. The effective training to staff members will help them to learn the ways to
interact with customers and solve their issues quickly which further help the company
to gain high brand reputation.
 Process: - It is defines as the procedure which is followed by company to deliver their
products to their customers (Pantano, Priporas and Migliano, 2019). In context of
Immune Booster, they first order the fresh fruits and ingredients from their suppliers
by contracting with them and agreeing to supply the ingredients within a fixed period
of time. Then with the help of tools and machines they prepare the soft drink and
filled them in the bio-degradable bottles and steel cans. Then they send the bottles and
cans for labelling to the other section of their factory from where the product is stored
in large refrigerator to make them fresh for last long and it quickly supply to
supermarkets and hypermarkets of Denmark.
 Physical evidence: - This is the proof that a company will give to a customers that
their organisation and their products are true and loyal in the market (Huang and Rust,
2021). This will further proof that the company and their offerings are not fraud and
illegal. The logo, designing of bottle, bills and packaging are few of the physical
evidence for the Immune Booster. These visible elements plays a very important role
in enhancing the brand image of the company and promote the positioning of the
Immune Booster in market because with the help of these visible elements the

customers can trust the company and compare their products with other company's
products.

CONCLUSION
After evaluating above data, it concludes that principles of marketing plays major role
for maintaining the vision, mission and objectives of company in long term. With help of
utilizing different types of marketing strategies top level management of selected firm is
easily identified the wants and desires of customers quickly. Effective marketing strategies
can help the company to achieve their goals and satisfy their customers effectively. It is also
concluded that marketing mix will help the company to analyse the opportunities which they
can gain to satisfy their targeted customers. In context of new product launch, the company is
required to mainly focus on innovative ways to satisfy their customers with their product.

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Online-
6 Methods of Consumer Targeting Every Business Should Try in 2018, 2018 [Online]
available through:
<https://digitaldealer.com/dealer-gm/6-methods-consumer-targeting-every-business-try-
2018/>
Denmark GDP, 2022. [Online] Available through:
https://tradingeconomics.com/denmark/gdp#:~:text=GDP%20in%20Denmark%20is
%20expected,according%20to%20our%20econometric%20models