Marketing Principles and Strategies

This assignment delves into core marketing principles and strategies. It examines key concepts like market segmentation, positioning, the differences between B2C and B2B marketing, and the application of various marketing mix elements (7Ps). Students are required to demonstrate their understanding by analyzing these concepts through case studies and examples.

Marketing Principles

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Elements of marketing process..............................................................................................3
1.2 Evaluating benefits and cost of marketing orientation..........................................................4
2.1 Analyzing micro and macro environment..............................................................................4
2.2 Proposing segmentation criteria.............................................................................................5
2.3 Targeting strategy for the selected product and services.......................................................6
2.4 Impact of buying behavior on marketing activities in different buying situations................6
2.5 Proposing new positioning of selected product and service..................................................7
3.1 Development of product to sustain competitive advantage ..................................................7
3.2 Use of distribution to provide customer convenience............................................................8
3.3 Setting prices to reflect the organization's objectives and market conditions.......................8
3.4 Integration of promotional activity to achieve marketing objectives....................................8
3.5 Analyzing additional elements of extended marketing mix..................................................9
TASK 2............................................................................................................................................9
4.1 Planning marketing mixes for two different marketing segments.........................................9
4.2 Differences in marketing products and services to businesses rather than consumers........10
4.3 Differentiate between international marketing and domestic marketing.............................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Marketing principle is the most imperative aspect because it assists the corporation to
promote products and services in the marketplace. The aspect of marketing makes it possible for
organization to increase the customer base by introducing product in the market successfully.
Present report is based on Next plc; a British multinational organization that provides products
and services in clothing, footwear and home products. Further, report covers element of
marketing process and different segmentation criteria which aid to speed up the flow of
production. In addition to this, promotional activities are explained for achieving the set
objectives of marketing.
TASK 1
1.1 Elements of marketing process
Marketing refers to process of introducing product into marketing with proper research in
context of target audience and ultimate users. The process of marketing consists of several
elements which are explained as follows- Understanding the marketplace- It is the most important part of marketing process as it
sheds light on market analysis regarding present competitors and demand of products and
services (Adcock Halborg and Ross, 2001). Identifying customers- Under this step, corporation recognizes the needs and preferences
of buyers and accordingly, products and services are introduced in the marketplace. This
leads to meet the expectations of customers effectively. Planning for marketing activities (STP) - This is the next imperative process of
marketing where focus is laid on segmentation, targeting and positioning. This assists
company to target the end users and to cater their needs (Blythe and Zimmerman, 2013). Building profitable relationship- This step is an important part of market process where
company focuses on customers' feedback against the new product launched in the market.
Also, build good relationship with them in order to retain them for longer time span.
 Monitoring and controlling- The last step of marketing process facilitates Next plc to
review the overall process and accordingly, to make changes in the plan. This leads to
reduce the gap between actual and expected results (Chung, 2007).
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1.2 Evaluating benefits and cost of marketing orientation
The marketing orientation refers to identify the need of customers and providing products
and services accordingly. Marketing orientation enables organization to deliver good quality of
products and services to large number of buyers. The cost of marketing is very high because
research and development department of organization conducts in-depth analysis of market by
conducting customer survey (Alserhan, 2012). Here, benefit of marketing orientation is to ensure
compliance of quality standard and to meet the expectation of end users in a right manner. This
aspect of marketing makes it possible for the corporation to create competitive edge and to
increase the customer base. Furthermore, marketing orientation is directly connected with the
introduction of new product in the marketplace which enhances the level of satisfaction among
existing buyers. In addition to this, marketing orientation is combination of intelligence
gathering, intelligence dissemination and responsiveness. It affects managerial decision of
corporation to a great extent. Owing to this, it is very important to understand the current
situation of market and accordingly make decision so as to enhance the sales turnover as well as
profitability of organization. Apart from this, market orientation includes three major component
such as customer, competitor and inter-functional coordination which prove to be effective to
take right decision for the growth and success of corporation.
Furthermore, marketing orientation is the way to adopt different kinds of marketing
strategies to boost the sales turnover and profitability of corporation (Dann, 2008). On the other
hand, sometimes, high cost of marketing orientation may lead to loss of the firm because it might
be possible that customers dislike the new product. Apart from this, marketing orientation assists
organization to create distinctive image in the marketplace by bringing innovation in existing
products and services (Ivy, 2008). Furthermore cost is incurred while selecting the right
marketing strategies to enhance the sales turnover and profitability of corporation. Apart from
this, marketing orientation makes it possible to bring new product in the marketplace with
innovation.
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2.1 Analyzing micro and macro environment
The macro environment of Next plc will be done with the help of Pestle analysis. This is
as follows- Political factors- Political factors constitutes role of governing parties and different kinds
of trade barriers. Here, UK government has political stability and government also
supports the corporation to move ahead with the increased rate of return (Madiechie,
2009). Economic factor- It includes factors like high inflation rate and adverse monetary policy
that affect the performance of corporation in a negative manner. Furthermore, exchange
value and other related factors make it possible for the corporation to maintain its
competitive edge in the marketplace. Social factors- Changing preferences of customers and their prevailing life style helps
Next plc to increase the customer base (Rust and Verhoef,2005). However, company
needs to change its services and products as per the feedback of customers which can be
difficult at the initial stage.
 Technological factors- Changes in the information technology give a new direction to
business. It is the way by which Next plc target to end users and persuades the customers
towards the same. Similarly, new inventions and development are helpful in maintaining
speed in the flow of production (Savitt, 2011).
Apart from this, micro analysis can be done with the help of SWOT analysis of Next plc.
It helps to analyze the internal as well as external environment of company. This proves to be
effective to take appropriate action in removing potential barriers. It has been done as follows-
Strengths
 Good financial performance
 Wide range of products and
services
 Business to business transaction
Weaknesses
 Seasonal cyclical implication
 Economic recession in nation
 High price of products and
services
Opportunities Threats
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 Expansion in potential areas
 Celebrity endorsement
(Zimmerman and Blythe, 2013)
 Innovating appeal in its clothing
lines
 Threat of other competitors
 Unfavorable economic condition
of country
 Lack of unique selling points
2.2 Proposing segmentation criteria
Segmentation is the process of breaking the entire market into small parts to focus on end
users effectively. It includes criteria like demographic, psychographic and geographic. For
example, Next plc can choose India for the geographic segmentation of clothing. In this regard,
locations like Mumbai and Bangalore can be referred for cotton clothing in order to meet their
expectations (Ham, 2008). On the other hand, demographic segmentation is used to divide the
market on the basis of marital status, gender and age as well as income group. This will help
Next plc to provide products to customers in accordance with their preferences (Criteria for
Effective Market Segmentation, 2012). Apart from this, psychographic segmentation is used in
context of lifestyle, buying habit and occasion. Along with that, attitude of customers are also
considered in such kind of segmentation. This basis makes it possible to introduce right product
in the marketplace and to meet the requirement of all types of customers. For instance,
psychographic segmentation can be done by focusing on the quality standards of product which
aid to attract those who refer branded apparels.
2.3 Targeting strategy for the selected product and services
The selected product is formal apparel. It will be targeted by adopting following strategy.
Basically, three types of targeting are used in the organization such as undifferentiated,
concentrated and multi-segment. The first one is undifferentiated target where whole market is
selected by the corporation with no special focus on individual segment. However, it can be used
only where there is no threat of stiff competition (Adcock, Halborg and Ross, 2001). The second
one is concentrated targeting where company focuses on particular market. For example, formal
apparels will be promoted according the occupation of customers and those with high income
group. Apart from this, multi-segment as the effective targeting strategy used when Next plc
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want to target two or more segment together. For example, formal appeals are promoted by
considering lifestyle, income group and occupation of consumers. Thus, the multi-channel is the
right targeting strategy for formal apparels which leads to increase the sales turnover and
profitability of Next plc. It aids to create strong position of corporation in the marketplace and
increase the customer base in the same way (Chung, 2007).
2.4 Impact of buying behavior on marketing activities in different buying situations
The buying behavior is affected in different buying situations and according to different
marketing activities. It can be understood as follows- Complex buying pattern-Under this, consumer search for different brand without any
kind of assumption and set pattern. They just search for the products and services in
accordance with their need. It might be possible that they get affected because of through
effective promotional strategies (Alserhan, 2012). Variety seeking buying pattern- It is another kind of buying behavior when consumer
generally have enough time and search for the range of products and services. This act is
done to satisfy their need in an effectual manner. In such kind of situation Next plc can
focus on marketing or promotion strategies in order to provide detail information related
to their offerings (Dann, 2008). Habitual buying behavior-This kind of buying behavior do not create need of more
promotion activities and research. This is because consumers take frequent purchase
decision accordingly the quality of services.
 Other factors-There are several other factors which assists customers to take purchase
decision. It includes weather, income and festival. For example if a person need to go for
meeting or presentation then he/she demand for formal apparel. In addition to this,
festival season also influence customers to purchase the products and services.
2.5 Proposing new positioning of selected product and service
The positioning of product is the imperative aspect because it enables corporation to
create strong image in the marketplace. For the selected product will be promoted on magazines
and online. This leads to increase the attention of customers towards the product. Here, quality of
product and premium prices will be set for the formal apparels. It facilitates to create different
perspective in the mind of end users. Apart from this, clothing will be advertised with inclusion
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strategy as celebrity endorsement (Madiechie, 2009). This is because celebrity endorsement aid
to influence customers towards offerings of firm to a great extent. It leads to increase the
consumer base and meet their expectations in an effectual manner. Furthermore, price, place and
promotion are taken into consideration thereby need of buyers can be satisfied in an effectual
manner. On the other, use of internet is the most effective manner to address issues of buyers and
accordingly influence their purchasing decision (Positioning process, 2015). Apart from this,
during promotion of formal apparels differentiation will be done with the existing products
provided by other competitors. In addition to this, premium prices charged for professional
outfits and quality of products is serve as the key position of Next plc. However, differentiation
in the products will also be done by comparing the same with products offered by competitors. It
leads to create strong market position of the firm.
3.1 Development of product to sustain competitive advantage
In order to create sustain competitive edge Next plc produces product according the
requirement of customers. There are several procedure can be used by corporation to bring
innovation and creativity in the existing products and services. Furthermore, feedback from
customers, employees will be incorporated in the existing product. It leads to enhance the level
of satisfaction among users. For example, formal apparels will be provided with different styles
by proper segregation of men and women (Rust and Verhoef, 2005). Furthermore, several other
factors like product quality, features and branding as well as product design are kept into mind
according to the preferences of buyers. For example, formal apparels will have quality
differences according the price of quoted. Furthermore, design of product will be changes by
assessing the product offered by competitors. In addition to this, features of product such as
color, price and quality are considered while developing the products and services. This will
assess the need of different types of buyers who own business or employed somewhere else. On
the other hand, present products of competitors are also the effective method for new product
development because Next plc can add more feature in the same and provide product to new
market or existing one. In addition to this, continuous improvement can be taken in the products
and services.
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3.2 Use of distribution to provide customer convenience
Distribution is the most effective important part of marketing principle because this is the
way by which product is provided to end users. The present product (formal apparels) is
available in retail outlet of Next plc. Similarly, product will be made available online also. This
is the foremost way to attract customer of different geographical areas. On the other hand,
corporation can tie up with malls and other retail outlets in order to promote sales turnover. Such
kind of promotional strategies lead to provide convenience to ultimate users and cater their need
in an effectual manner (Zimmerman and Blythe, 2013). Apart from this, customers perspective is
also considered while selecting the distribution channel. It leads to enhance their level of
satisfaction and sales turnover in the same direction. Similarly, businesses are contacted through
online and professional sites. Here, product will be dispatched accordingly the convenience of
businesses. Apart from this, direct of indirect distribution channel need to be considered for
product offering. In this regard, direct distribution can be sale of product through main store of
Next plc. On the other hand, indirect channels are whole-seller and retailers who can easily
contract to potential buyers. This in turn prove to be effective to reach ultimate buyers and
provide them services accordingly.
3.3 Setting prices to reflect the organization's objectives and market conditions
Price is the main component which reflect the organizational objectives and market
condition. It assists management to set the right prices. Here, for the selected product as formal
apparel premium prices will be set. The reason behind selecting this pricing strategy is the create
brand image of product in the marketplace. This premium price of product tend to generate
superior image of product in the mind of buyers (Sicotte, Drouin and Delerue, 2012). It leads to
deliver good quality of services to number of buyers. This aspect of corporation tend to attract
more buyers who are brand or quality conscious. Furthermore, setting higher price at the initial
stage is the just the attract high profile buyers and those who consider quality as the imperative
aspect. Also, the people who have relatively updated lifestyle will prefer the product. Thus, it
reflect good image of company in the marketplace and also create competitive edge of the same.
3.4 Integration of promotional activity to achieve marketing objectives
It is very important to integrate the promotional activity for achieving the marketing
objectives. For example, the main motive of Next plc to create the brand image of company and
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also the enhance the sales turnover wit increased rate of return. In this regard, promotional
activities like online marketing and magazines will be inter related. For instance, advertisement
will be placed like to get more detail refer the web site of corporation. Here, when customer will
click on the site then they will come to know about the special offer and discount of formal
apparels. On the other, retail outlets will be linked to malls which in turn both can work with
integrity to increase the customer base. Here, effective strategy can be adopted to motive
retailers. For example commission on achieving the sales targets. This ultimate leads to enhance
the sales turnover and build competitive edge of the Next plc.
3.5 Analyzing additional elements of extended marketing mix
The marketing mix of any product is important because this way corporation define
overall activities related to products and services. The additional marketing mix are explained as
follows- People-it is the most important extended marketing mix where emphasis is laid on the
workforce. In this regard, Next plc provide training to employees, distributors and
personnel who are working in the promotional department. It assists them to fulfill
demand of customers in an effective manner (Sicotte, Drouin and Delerue, 2012). Process-The appropriate process must be followed by corporation or staff members to
produce the product and provide the same to end users. The process for producing the
product of Next plc is purchasing raw materiel from appropriate suppliers and converting
the raw materiel into finished good by keeping into mind quality standard. After that
providing the products to buyers by making use of effective promotional strategies and
channel of distribution.
 Physical evidence-This consists of both tangible and intangible aspect. For example,
different kind of formal apparels and after sale services. It aids to deliver good quality of
services to large number of services users. Apart from this infrastructure of corporation
such as building and machinery as well as other related technological aspect must be
ensured effective so as to meet the sales target. Also, website is considered as physical
evidence through which customers are provided detail information regarding apparels.
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TASK 2
4.1 Planning marketing mixes for two different marketing segments
For defining marketing mix of formal apparels two different marketing segments are
selected such as students and professionals. These are explained as follows-
Marketing mix Students Professionals
Product The product for both segment
is formal apparels. This is
because students also refer the
formals in their academy.
Professionals like business
men/ women also make use of
formal clothing in
organization. Owing to this,
good quality of products is
available to meet requirement
of both segments.
Price The price of formal apparels
for professionals will be kept
relatively high whereas
students segment will get
product in less price with wide
range.
Premium price is set for both
segments.
Place Students can get product in
malls and retail stores of Next
plc. The reason behind the
same is low rate plus little
bargaining can be done for the
product of students.
Online sites will be used to
promote products for
professionals.
Promotion On the other, students will
come to know about the
product by the help of mobile
app, television.
-the product for professionals
will be promoted through
online or magazines.
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4.2 Differences in marketing products and services to businesses rather than consumers
The marketing of products and services to customer require high emotional appeal in
advertisement which generally does not require in case of businesses. This is because customers
has wide range of choices from number of competitors where businesses establish ling term
contract with certain seller or parties. Furthermore, advertisement in case of B2C cover short
messages and consists of appeal (10 Differences Between B2C and B2B Marketing, 2013). On
the other hand, businesses need enough information regarding the quality of products, prices and
other related details. At this juncture, Next plc build formal contact between businesses whereas
with customer it try to build informal relationship. Apart from this, businesses marketing do not
require further need of promotion where in case of consumer marketing company need to
promote the services every time. Apart from this, segmentation, targeting strategies of B2B and
B2C are quire different because in case of consumer different factors are considered unlike B2B.
Furthermore, prices of products and services in case of businesses are relatively kept low
as these are provided in bulk. On the other hand, for consumer products are offered in standard
prices and also sometime discount are provided. Moreover, in case of marketing of products and
services to business volume always remain high but customer purchase in accordance with their
requirements.
4.3 Differentiate between international marketing and domestic marketing
Marketing practices require active efforts of management for the sales promotion and
increasing customer base.
Market Similarity Differences
Domestic market  Domestic marketing it
quite simpler concept
than international one.
It depicts that Next plc
need to consider
several things like
language, culture and
trend of country and
accordingly
 This is quite different
in term of domestic and
international
marketing. Here,
corporation can be get
technological
advantages in case of
international marketing
because entire
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advertisement take
place. However, the
same concept is also
followed while
international
marketing.
 Therefore, corporation
can should consider
constraints while
placing the
advertisement both
international and
domestic level. This
aid to create
competitive edge at
global market place
and enhance the sales
turnover as well as
profitability (Chung,
2007).
 Both kind of marketing
require active efforts in
promotion and
products and services
so as to enhance the
number of buyers.
information will be
provided to customers
through the use of
electronic mode
(Savitt, 2011). It leads
to satisfy need of
customers.
 In addition to this, law
and regulatory
framework also impose
barriers on Next plc if
it operates business at
international level. At
this juncture
corporation need to
consider terms and
condition.
 Similarly, at domestic
level company has idea
about the competitors
but in case of
international marketing
it remain unknown.
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CONCLUSION
The aforementioned report concludes that marketplace strategies are the imperative
aspect in determine long run growth of corporation with increased rate of return. It shows that
organization need to define the market mix of product effectively and then formulate the
effective strategies for the promotion of the products and services in the light of organizational
objectives. It can also be said that, international and domestic marketing is different from each
which generate need to consider certain constraint while operating business at global level.
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REFERENCES
Journals and books
Adcock, D, Halborg, A and Ross, C., 2001. Marketing: Principles and Practice. Financial
Times/Prentice Hall.
Blythe, J. and Zimmerman, A., 2013. Business to Business Marketing Management: A Global
Perspective. Routledge.
Chung, H. F. L., 2007. International marketing standardisation strategies analysis: A cross-
national investigation. Asia Pacific Journal of Marketing and Logistics. 19(2). pp.145 –
167.
Alserhan, A. B. D., 2012. The Principles of Islamic Marketing. Gower Publishing, Ltd.
Dann, S., 2008. Applying services marketing principles to postgraduate supervision. Quality
Assurance in Education. 16(4). pp.333 – 346.
Ivy, J., 2008. A new higher education marketing mix: the 7Ps for MBA marketing. International
Journal of Educational Management. 22 (4). pp.288–299.
Madiechie, N. O., 2009. Consumer Behavior: Buying, Having, and Being. 8th ed. Management
Decision. pp.845 – 848.
Rust, R and Verhoef, P., 2005. Optimizing the Marketing Interventions Mix in Intermediate-
Term CRM. Marketing Science. 24(3).pp. 477-489.
Savitt, R., 2011. On biography in marketing. Journal of Historical Research in Marketing. 3(4).
pp.486–506.
Zimmerman, A. and Blythe, J., 2013. Business to Business Marketing Management: A Global
Perspective. Routledge.
Ham, V. P., 2008. Place Branding: The State of the Art. Annals of the American Academy of
Political and Social Science, 616, pp.126-149.
Sicotte, H., Drouin, N. and Delerue, H., 2012. Marketing and technology strategies for
innovative performance: The OPM equation in different contexts. International Journal of
Managing Projects in Business. 5 (2).
Online
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10 Differences Between B2C and B2B Marketing. 2013. [Online] Available at:
<http://www.riechesbaird.com/services/brand-strategy_cp.aspx>. [Accessed on 2nd
December 2015].
Criteria for Effective Market Segmentation. 2012. [Online]. Available through:
<http://www.segmentationstudyguide.com/understanding-market-segmentation/criteria-
for-effective-market-segmentation/ > [Accessed on 2nd December 2015].
Positioning process. 2015. [Online]. Available through:
<http://www.marketing91.com/positioning-process/ > [Accessed on 2nd December 2015].
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