Principles of Marketing Management

Principles of
Marketing
Management

Executive summary
It is a report where principles of marketing are included in an effective manner. Various topics
are going to be discussed in this report so that effective marketing audit can be done by the
management team of Aldi before establishing a business function at the market place. Auditof
the whole market is going to be conducted so that effective recommendations will be suggested
to the management team of the company. One of the biggest advantage of conducting market
audit is that they will be able to identify the current market situation while establishing business
entity at the market place of UK. For this, managers needs to perform PEST analysis along with
SWOT so that they can enhance their performance and profitability and maintain their
sustainability at the marketplace. Both micro and macro analysis are going to be discussed in
detail so that possible decisions can be make by the management team of chosen company. In
this report a differentiation table is developed in which three organization are considered as the
base company which includes ALDI, TESCO and IKEA(Hut. and Speh,., 2003).
Introduction of Marketing and market audit
Marketing isdefine as one of the most essential as well as crucial process for an organization.
Itisconsidered as a procedure which develop, deliver, communicate and exchange different offers
and information with their customer. Therefore, it is very important tomanage all the functions

which is related with marketing process. It is define as a science and art which creates value
among customers by satisfying their requirements and demands. Marketing Audit is generally
conducted by third party not by the business organization itself(Sargeant, 1999). It is
comprehensive, interpretation, systematic analysis of the current business marketing
environment, sothat they can recommend effective strategies and policies according to the
market situation. In the present report, Aldi, ischosen as the base company which is a German
supermarket chain.Theyentered in the marketplace of UK in theyear 1990 and now theyoperates
500 stores across the world.In this report various sections are going to be discussed in detail
which includes macro along with micro analysis. This as a result assist in identifying the current
market situation as well as internal condition of the company. Apart from this, SWOT analysis is
defined in an effective manner so that internal strength and weakness will be identified within
given time period.
Macro analysis
It has been analyzed that external environmentcommonly includes two factors macro and
micro environment. In contextof macro environment, analysis is based on wide basis in which
the business operates their functions. Therefore, external environment directly affects the overall
success of business in both positive and negative manner. In reference to Aldi, management team
of the company conduct PEST analysis so that they will be able to examine the current market
situation and develop strategies according to the changing environment. All the elements of
PEST are going to be discussed as follows:-
Political factor:It is the factor which includes all the political elements which directly affects
the performance of business organization at the competitive marketplace. In the present context
of Aldi, it has been analyzed that thereare large number of conflicts, issues and problems related
to political instability. All these factors might affect the overall sustainability of the company at
competitive market as each and every country have their own political policies. Therefore, it is
essential for the management team to identify current political situation of the country before
doing business expansion(Dyson, 2004).
Economic factor:Apart from political factor, it is the element which includes each and every
factor related to economy of the country. It is very essential for a business entity to contribute