Principles of Marketing

This report discusses the principles of marketing and how it can increase organizational performance and productivity. It covers topics such as marketing environment, planning process, segmentation, targeting, and positioning. The report also includes a case study on Hill's Vineyard, a small organization producing sparkling and table wines.

Principles of
marketing
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
Section 1 Marketing Environment and Planning Process................................................................3
Section 2 – Segmentation, Targeting & Positioning.......................................................................7
Section 3 – Marketing Mix Analysis...............................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCE................................................................................................................................12
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INTRODUCTION
Marketing is the needed term in organisation that has main aim to inform the customers and
people regarding particular products and services. For all companies it is required to have good
marketing activities so all task and objectives of organisation can be completed in certain period
of time. The manager of any organisation should conduct market analysis that can help to deal
with difficulties and increase the organisational productivity (Hayhurst and Wills, 2018). This
helps to identify the needs and wants of their customers then offer kind of products and services.
This report is bases on marketing principles and environment related to marketing that helps to
increase the organisational performance and productivity. This report covers a discussion about
‘Hill’s Vineyard’ that is situated in North Downs with its famous chalky soil, and approx. 20acres of
land that have planted which are producing sparkling and table wines. This report covers
understanding about marketing environment and planning process and segmentation, targeting
and positioning that helps to increase the organisational productivity.
Section 1 Marketing Environment and Planning Process
a. Explain the components of the marketing planning process and outline the
marketing context for the vineyard offer, with particular reference to the role
Marketing planning process and marketing context for vineyard offer
Marketing planning is consider as strategy which is uses by organisation in order to inform
people regarding new products and services that helps to increase the organisational
performance. This is important for organisation to use marketing activities so people get
information and make right business decision by selecting best option. The marketing planning
processes in context to vineyard are as defined:
Market research – This is first step which is uses by management to research the market,
preference and taste of people so kind of products can be provided to them. In context to Hill’s
Vineyard, management are conducting market research which helps to increase the organisational
performance and increase the customers.
Target market – In this planning, an organisation is finding the niche and target market for
products and services that can help to maintain the productivity. In context to Hill’s Vineyard’
management are targeting niche market that can help to maintain the good performance.
Product – This means an items and services which are provided by organisation in order to
fill the customer needs and wants that can help to operate the business and increase profitability.
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In context to Hill’s Vineyard’ products such as wine are other items are provided by company in order
to increase organisational productivity (Kanten and Darma, 2017).
Competition – In this planning step, organisation seek towards competition such as how
many competitors are there in market. In context to Hill’s Vineyard’ in UK there are many
competitors who are selling the similar products and services at competitive prices.
Mission statement – This means a short term plan of organisation that should be filled in
certain time. The mission statement of Hill’s Vineyard’ is to increase organisational sale and
profitability.
Market strategies – This planning process is related to marketing strategies that should
be develop by organisation for increasing production and profitability. The management of Hill’s
Vineyard’ are performing marketing strategies that can attracts the customers and deliver them best
quality of services.
Pricing, positioning and branding – The planning is defined pricing, positioning and
branding that helps to increase brand image in competitive business environment that maintain
good performance. The Hill’s Vineyard’ is adopting competitive pricing policy, good position and
brand image by offering quality of products and services (Balmer, 2017).
Budget – This is defined as estimation of income and expenses that arises in organisation
and helps to increase the business activities. In context to Hill’s Vineyard’, management are
preparing the budget by involving income and expenses that helps to perform all activities and functions
for managing the high performance.
Importance and benefits of marketing orientation
 This helps to increase the sales and organisational income.
 Marketing orientation and activities brings continuous improvement by effectiveness and
efficiency.
 This increases business volume and market share by using marketing orientation.
 Happier employees that make customer happy by delivering best marketing activities.
 The activity in relation to marketing increases the customer satisfaction and loyalty.
b) Carry out an environmental audit in the form of a PESTEL analysis for the business
ensuring that you detail specific market
Macro environment – This refers as environment in relation to marketing that uses by
organisation for controlling the activities. This is important for all companies to analysis the
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business environment and maintains the activities and increase performance. In context to Hill’s
Vineyard, macro environment is analysis by management that has impacted on business are as defined:
PESTLE analysis – This is a framework which uses by organisation to analysis the macro
environment that can help to run the business accurately. The management of Hill’s Vineyard, are
analysing business environment that are as stated:
Political factor – This refers as political government that involves government policy,
corruption, stability, tax policy, labour laws and trade restrictions that has impacted on business. In UK,
the government policies are stable that helps to operate the business and increase organisational
productivity. On the contrary, increasing tax rates can create challenge for organisation that has affected
on business negatively as it increases cost of company due to paying high charges (Tereshkina and et.
al., 2017).
Economical factor – This factor is related to economic growth, exchange rates, inflation rates
and interest rates that arises while running a business. In UK, the economic growth are increasing that
helps Hill’s Vineyard to increase the number of customers by providing them a level of satisfaction. On
the contrary, after Brexit the disposable income of people are decreasing that affected the business
negatively that reduced the organisational productivity.
Social factor – This factor is related to population growth rate, distribution career attitudes,
health consciousness, lifestyle attitudes etc. that attracts the business and by performing activities. In UK,
Hill’s Vineyard is focusing on wants of their customers and provide the wine according to their taste that
helps to increase the organisational productivity and maintain the good performance (Wróblewski,
2017).
Technological factor – This factor is related to innovation and technology that is important for
organisation to run the business. Hill’s Vineyard is taking the benefits of this factor as they bring
innovation and new process of make the wine that helps to reduce cost and increase organisational
performance. This factor is required high investment and resources to adopt new technology which has
affected business and reduce the profitability.
Legal factor – This factor is uses by organisation by following the all laws and regulations that
can help to operate the business and increase the productivity. In context to Hill’s Vineyard, management
are following all laws such as employment, health and safety, data protection and equal wages that
enhances employees and retain them in organisation (Almestahiri and et. al., 2017).
Environmental factor – As environment is curious factor that should be followed by
organisation while operating the business. Hill’s Vineyard is focusing on all environment related
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activities such as reduction in wastages, renewable energy and carbon emission that helps to increase the
organisational activities and maintain performance (Sowter, 2018).
c) Outline* the extended marketing mix 7Ps and explain how the development of the extended
marketing mix could contribute to effective marketing planning for the new product.
Marketing mix – This is defined as combination of various factors and elements that related to
business and helps to increase the organisational performance by using effective marketing strategies. In
context to Hill’s Vineyard, a marketing mix is defined below:
Product Hill Vineyard is an organisation that is providing wines with
different flavours that helps to increase the number of
customers them. This organisation is using effective
marketing strategies which are important to reach the
potential customers and deliver the best services (Miles,
2018).
Price This means cost which are set by organisation for providing
the products and services. In Hill’s Vineyard, the competitive
and premium pricing strategies are adopted by management that
helps to operate the business and increase profitability.
Place The products and services are providing in North Downs that
is Hill areas that helps to increases the organisational
performance. This organisation helps to increases the
productivity.
Promotion Hill’s Vineyard is small organisation that is using news
paper, magazines, social media that helps to attracts the
customers and increase the business performance.
Process Hill’s Vineyard is using online and offline process to sale
their products such as wine that helps to increase the
customers and maintain the profitability.
Physical evidence Hill’s Vineyard is maintaining the logo and designing
infrastructure that managing the activities and increase
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performance (Kumar, 2017).
People In Hill’s Vineyard, marketing manager, production department,
customer services and sales manager that are performing activities
and managing the brand image.
Section 2 – Segmentation, Targeting & Positioning
a) Explain how the overall market could / should be segmented for ONE of the following:
Segmentation is the activity which is uses by organisation by dividing the market group
in to different groups that helps to increase the activities. This organisation is segmenting the
market in different segmentation that are as defined:
Segmentation – Hill’s Vineyard is segmenting the market in demographical and
behavioural market that helps to increase the performance. In this organisation, management are
focusing on age, income group and taste of customers that help to attracts the people and
increase performance. People who comes from other country in UK looks to book a vineyard
tour that increases brand image.
Targeting – This organisation is targeting all level of customers such as small retailers,
local consumers and other clients that increases sales and productivity.
Positioning - Hill’s Vineyard is maintaining the higher position that helps to increase
the organisational activities. The managers of such organisation using effective strategic
marketing that attracts customers and maintaining performance (Parsons and Rowling, 2018).
b) Identify your B2C target market as to who you would primarily target with the tour in
terms of characteristics including demographics, behavioural, benefits sought and lifestyle.
B2C target market refers as business to customers market that can help to increase the
sales and profitability by selling to customers directly and using marketing activities. This is
important for organisation to focus on customer’s needs and targeting market that helps to
increase the performance and sales. In context to Hill’s Vineyard, small retailers, clients and
other people by providing different types of wines by using marketing activities which helps to
increase the business performance and sales. As this organisation is selling the products in small
areas that have good relations with customers and maintaining high performance. The managers
are primarily targeting small retailers, other customers who comes to visit UK and other
customers who have knowledge about need that helps to increase the sales and productivity. This
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increases the brand image and market share by delivering best quality and taste of wines that also
keep healthy to person and increases performance. The managers are focusing on behavioural,
demographic and geographical segmentation that helps to operate the business by selling the
products and services.
c) Explain what is meant by the term ‘positioning’ and suggest how the vineyard tour
would be positioned in the consumer market.
Positioning – This defined as product which stands for providing similar products and
services in market place as well mind of customers. For maintaining a good position there is
need to provide different types of products and services which can attracts the customers and
maintain the good brand image. A good position gives to organisation a USP (unique selling
point) that can create a difference which managing the competition and delivering the services.
All companies who are establishing their business by offering better quality of products by
managing the activities that helps to increase the productivity and profitability in competitive
business environment (Thompson, Gillen and Friess, 2018).
It has suggested to Hill’s vineyard to use strategic marketing and planning, profitability
analysis and cost profits analysis that can help to maintain the good business activities. This
organisation should focuses on PESTLE analysis, marketing strategies and planning which helps
to increase the brand image and profitability. For making the positioning of Hill’s Vineyard
there is need to focus on their marketing strategies and marketing mix that can help to make the
right business decision in competitive business environment and maintain high profitability.
Moreover, demographic and behavioural segmentation is effective tool and strategy that can be
used by chosen organisation for maintaining USP by delivering best quality of products and
services. This is important for all organisation to run their business and focuses on unique selling
point which management need to provide different types of products and services at low cost so
customers get attracted towards product and make the buying decision efficiently. This can help
to increase the organisational productivity by maintaining good position and brand image in
challenging environment. In positioning, the marketing department of Hill’s Vineyard create an
image for the products based on potential audience that attracts customers and increasing
profitability. Moreover, by enhancing business activities of chosen organisation can increase
activities. This organisation should have good relationship with their customers and other
countries so they can buy products and services effectively and manage the good performance.
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Section 3 – Marketing Mix Analysis
This means a tool and analysis that uses by organisation for the purpose of delivering
products and services that increases brand image. For maintaining a business successfully and
taking competitive advantages marketing mix is considered as effective framework that can help
to maintain the performance. This analysis is required to know how an organisation can manage
the activities and how it can deal with competitors. The management of Hill’s Vineyard are
using marketing mix that are as defined:
Product Hill Vineyard is small size organisation that is selling
the different flavours of wines and drinks to its
customers. The products which are providing by
organisation are developed as it focusing on needs of
customers then provide which helps to sustain the
competitive advantages. In this market there are many
sellers who are selling the wines that create the
competition.
Price In this organisation, competitive pricing strategy is
adopted by management that can help to attract the
customers and increase the organisational performance
in competitive environment. The management are also
setting the prices, discount offer on special occasion
and festival is provided that make happy to customers
and increasing market share.
Place The chosen organisation is providing products and
services in UK. Jamie and Megan are planning to
expand their business by increasing the distribution
channel that can help to increase productivity. The
managers of organisation are managing distribution are
arranging distribution by opening stores, contacting
retailers and other distributors which have direct
relation with customers. Moreover, B2C distribution
channel can help to increase the sales by offering at
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efficient cost.
Promotion Promotion is highly important for companies that helps
to attracts and get customer’s attention towards
organisational products so people get information and
make right buying decisions. In context to Hill’s
Vineyard, promotional activity such as social media,
communication mix, coordination that can help to
increase the performance and that are integrated to
marketing objectives. This helps to attain the marketing
objectives which maintain the good performance.
Physical evidence This means visible element of brand that helps to
increase activities. Sparkling and table wines are
physical evidence that can help to attracts the
customers and increase the business profitability. The
infrastructure that can help to understand easily good
organisation and maintain high performance (Yu,
Ramanathan and Nath, 2017).
Process Hill’s Vineyard is using the ordering, online website,
booking tour and other process to getting the products
to the customers. The managers are increasing the
brand awareness by reaching the customers and selling
the products (Chernev, 2018).
People A business is running with the help of staff who
perform different roles and responsibilities in
organisation so all working can be done in right time
and managing the performance. In context to Hill’s
Vineyard marketing manager, sales manager,
production manager, employees and other people are
working who perform their functions accurately and
increase the profitability.
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Therefore, marketing mix analysis is done by management of Hill’s Vineyard which help
to increase competitive advantages in competitive business environment. marketing mix states
how such organisation can develop its products and services, how it take sustainable advantages
and how all activities are managed by management which helps to improve the organisation
productivity and profitability.
CONCLUSION
From the above report it can be concluded that marketing mix is the defined them that uses
by organisation to run the business and create a USP point by attracting customers. This is
important for organisation to manage the performance and deal with difficulties which are facing
by organisation and how to develop the products. Segmentation involves demographic,
geographic and behavioural that uses to perform, targeting and maintaining good position in
business market. The marketing is important as it provide the information regarding particular
product and services which are important for customers and create a brand image in competitive
business environment.
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REFERENCE
Books and Journal
Hayhurst, R. and Wills, G., 2018. Organizational design for marketing futures. Routledge.
Kanten, I. K. and Darma, G. S., 2017. Consumer Behaviour, Marketing Strategy, Customer
Satisfaction, and Business Performance. Jurnal Manajemen dan Bisnis. 14(2). pp.143-
165.
Balmer, J. M., 2017. Corporate brand orientation: What is it? What of it?. In Advances in
Corporate Branding (pp. 175-202). Palgrave Macmillan, London.
Tereshkina, T., and et. al., 2017, October. Social-and-economic mechanism of formation of
favorable investment attractiveness of the region. In IOP Conference Series: Earth and
Environmental Science (Vol. 90, No. 1, p. 012138). IOP Publishing.
Wróblewski, Ł., 2017. Application of marketing in cultural organizations: The case of the Polish
Cultural and Educational Union in the Czech Republic. Cult. Manag. Sci. Educ. 1.
pp.79-92.
Sowter, C. V., 2018. Marketing high technology services. Routledge.
Kumar, V., 2017. Integrating theory and practice in marketing.
Miles, C., 2018. Marketing, rhetoric and control: The magical foundations of marketing theory.
Routledge.
Parsons, M. and Rowling, M., 2018. Social Media and the Paradox of Fear: An Exploratory
Study of Political Relationship Marketing Within South Wales. Journal of Political
Marketing. 17(3). pp.235-257.
Thompson, B. S., Gillen, J. and Friess, D. A., 2018. Challenging the principles of ecotourism:
insights from entrepreneurs on environmental and economic sustainability in Langkawi,
Malaysia. Journal of Sustainable Tourism. 26(2). pp.257-276.
Yu, W., Ramanathan, R. and Nath, P., 2017. Environmental pressures and performance: An
analysis of the roles of environmental innovation strategy and marketing
capability. Technological Forecasting and Social Change. 117. pp.160-169.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Fouad, N., 2017. Viral marketing effect on digital knowledge acquisition: WhatsApp as a
model. Alexandria. 27(1). pp.10-29.
(Hayhurst and Wills, 2018) (Kanten and Darma, 2017)(Balmer, 2017) (Tereshkina and et. al.,
2017) (Wróblewski, 2017) (Almestahiri and et. al., 2017)(Sowter, 2018) (Miles, 2018) (Kumar,
2017) (Parsons and Rowling, 2018) (Thompson, Gillen and Friess, 2018) (Yu, Ramanathan and
Nath, 2017) (Chernev, 2018)( Fouad, 2017)
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REFERENCE
Books and journal
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