The report studies the comparison between the marketing mix of two different organizations, with a focus on the Cadbury firm. It discusses the roles and responsibilities of marketing and highlights essential concepts in marketing research.
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MARKETING ESSENTIALS
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Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 P1 Marketing concept as well as its role and responsibilities in marketing function.............1 P2: Role and responsibilities of marketing department in widening an organization............4 TASK 2............................................................................................................................................6 P3 Different ways through which enterprises can apply marketing mix for process of planning ................................................................................................................................................6 TASK 3............................................................................................................................................9 P4 A marketing plan for Cadbury..........................................................................................9 CONCLUSION..............................................................................................................................12 REFERENCES..............................................................................................................................14
INTRODUCTION Marketing is regarded as necessary factor in company and it is helpful in conduct business or company in significant manner. In this, it plays essential role in making firm more successful. Functions those are performed through marketing department are promotion, sales, customer services, advertisement and many others(Raj, Walters and Rashid, 2012). It is a responsibility of marketing manager to conduct all activities and operations related with marketing in an effective or significant manner.This given assignment is based on Cadbury which deals in confectionery business. It is considered as second largest brand in the world which operated its business in 50 countries almost.In this given report discuss about the interrelation of marketing function with other. Key responsibilities and roles of the marketing functions will be discussed in given report. Under mention report will be mention about comparison among marketing mix of two different organisation. TASK 1 P1 Marketing concept as well as its role and responsibilities in marketing function In today competitive world, an organisation use various tactics to marketing its business at marketplace in a wider manner. Owners of such companies are known at everywhere due to their way of earning money by selling its products or services. Marketing division performs various functions in order to satisfy demand of customers which are basically divided into 7 main concept that are distribution channels, financing an industry, marketing information management, setting the price of commodities, promotional channels, product and service management (Marketing essentials of Cadbury. 2018). By performing these functions in a proper way, an enterprise can analyse new trends of market place in an effective manner as well as determine desires of consumers. In addition to this, it also helpful in completing the same on time also. Cadbury is a British multinational company that offers confectionery products. It operates business in more than 50 countries and sold food items and beverages like tea, coffee and chocolate.This firm wants to achieve the largest position in UK and expanding its business in different locations of other international countries.Therefore, it has introduced high profile organisational culture in business which is based on Charles Handy's model. This model has identified four kinds of culture that are- 1
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ď‚·Power culture:In this era, whole responsibilities of getting right work of employees on individual basis is taken by leaders or small group of an enterprise. ď‚·Role culture:It defines power and role of that individual person who strictly control activities of all workers. ď‚·Task culture:It states that those people who have power will complete a task in more effective manner. ď‚·Person culture:This type of culture concerns more on individual and complete their basic needs is main priority of such organisations. The major functions of marketing in Cadbury can be described in following way:- Illustration1: Marketing Strategies (Sources: Marketing Strategies,2018) ď‚·Marketing Information Management:This function of marketing department aids a firm in understanding needs of customers and their desires in a more specific manner. In this process, marketers used to collect information by taking feedback of consumers, carrying a survey through market research or reviewing published report(Puddle, 2015). In addition to this, they can also tract performance of business products at marketplace by monitor review on own sites and social media like Twitter, Facebook and more. ď‚·Distribution Channels:It reflects the strategy of a company used to deliver products or services as well as way of obtaining the same by customers. Small business organisation 2
like Cadbury used to sell commodities directly through sales team or consumers can get at stores of these. This firm has formulated effective strategies in order to increase sales performance like it has opened all stores in populated and targeted area where customers can easily get products of their choice. ď‚·Financing:This is the major function among all in which marketers aid enterprises in identifying sources where owners can obtain finance. In addition to this, successful marketing helps companies in providing a regular flow of revenue through which they can pay for further business operations in a proper manner. Activities performed by managers strengthen customer loyalty aid in securing long-term revenues also. ď‚·Product/Service Management:In this era, marketers are required to identify demand and need of targeted people in a proper way. In addition to this, they should determine status of them also so that purchasing power can be identified(Koontz, 2010). Through this type of information, they can help enterprise in adding more features in products or services so that requirement of customers can be fulfilled. These things aid enterprise in enhancing brand image as well as increasing sales performance in a profitable way. In context with Cadbury, for product differentiation it has always used to put a signature on brands. It shows the most dynamic part of strategies in terms of management.In addition to this, its amazing tasty product like Dairy Milk, Creme Egg, usage ď‚·Pricing:This function also plays an important role in enhancing sales performance of a company. In this process, a firm needs to focus more on analysing number of competitors it has which would help in formulating effective price strategies. In this situation as Cadburyis a premium brand and targeted audience belongs to all kind of classes therefore, it offers a wide range of products and price them on affordable rates. Due to largenumberofcompetitorslikeLouisVuitton,HermesInternationaletc.global expansion into economies and more, this firm has faced various problems such as financial crises. So, it has to offer commodities on lower price rates. ď‚·Promotion:This function of a company helps in creating awareness among targeted customers about its commodities or services(Rother, 2010). It incudes various techniques of marketing products like advertising, telemarketing, various promotional activities such as campaigning and more. In this manner,Cadburyhas made a huge investment for spending on channels like radio and online advertisement. As comparison to other, these 3
sources are cheaper and cost effectiveness also. In addition to this, it has also used to promote its products or services such as newspapers and magazine advertising, internship offers, customer membership discounts and more. ď‚·Selling:Since concept of marketing and selling interconnected with each others so it is the last and main function of marketing in an enterprise. In this era, marketers aid sales division by generating leads for them through which they can sell products easily as per requirement of customers in a more easy way. In context withCadbury,marketing department by creating awareness and building preferences for a product in customers helps in selling more commodities. P2: Role and responsibilities of marketing department in widening an organization Every organisation has different department that are formulated by administration to execute business operations effectively. HR, operation, finance, IT, marketing, sales, research and development are various segments which helpCadburyto enhance image and reputation in market. Marketing team plays essential role in company to attract customers by informing them about products and services. Marketing plan is formulated by which comprises 7P's that is product, price, place, promotion, people, process and physical evidence. Along this, budget is set foreachpromotionaltacticsusedtotargetcustomers.Thus,thereisrelationbetween departments which are discussed below: Human resource and marketing department:Recruitment, selection, compensation, training and development are various practices executed by employer ofCadbury. This helps them to have adequate workforce which are skilled and have ability to function effectively. Management provide duties and tasks to staff in according to their skills and abilities(Pike, 2015). Session, seminarsand meeting are executed to enhance capabilities of marketing members, so that they are able to enhance image and goodwill in market. Finance and marketing department:Organisation require to have adequate capital to conduct business activities and have appropriate resources. Ledger, balance sheet, trial balance and profit & loss are financial statement that are formulated by management ofCadbury to have accurate and complete information about expenses and income level(Wirtz, 2012). Marketing department require to get appropriate funds to use different promotional techniques that is sales promotion, advertising, social media and online marketing to inform people about variety of products and services. This help superiors to attract people by giving them information about 4
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packages, features and benefits of items. Thus, management is able to establish competitive advantage and position firm higher than competitors. Production and marketing department:Operation unit responsibility is to manufacture items and provide quality things and quick services to customers. Marketing unit has complete knowledge and information about demands of people. This helpCadburyto direct members and make them provide things in respect to taste and preference of customers. Sales and marketing department:Sales team interact and communicate with people to influenceandpersuadethemtopurchasethings.InCadbury,marketingmembersuses promotional techniques that is sales promotion, advertising, online marketing to inform people about items and services. This help management to easily attract customers by providing them information about packages. Thus, seniors are able to enhance sales and profit by giving clients data about variety of items. Marketing department's relationship with IT :It has been analysed that interrelationship in between these two departments may help a business organisation in different ways. Some of major help that IT department gives to marketing like:Website development and e-commerce and these are two major elements of informatics technology section that can aidCadburyin different areas through which improvisation of sales of products and services can be done in an appropriate manner(Peter and Donnelly, 2011). Along with this, it has been analysed that relation among these two departments is must in order to deliver good experiences to customers right on time. Marketing relationship with Research and development department :Relationship in between these two departments may aidCadburyin developing a powerful competitive weapon against rivals.When both marketing and R& D helps organisation is developing strategies through which consumer's needs and wants can be located. After this, it is job of marketing department to utilise gathered information which was being brought by R & D department in order to gain attention of customer's high in numbers. Through this, both of their jobs easier and their results more productive in nature. This is a powerful competitive weapon since this is not the case at many companies. 5
TASK 2 P3 Different ways through which enterprises can apply marketing mix for process of planning In order to analyse how business of a company is going at marketplace as well as evaluating effectiveness of own strategy used to promoting goods or services, managers can use the best technique name by marketing mix(Judge and Robbins, 2015). It constitutes 7 P's that are product, price, place, promotion, people, process and physical evidence which help in evaluating position of an enterprise at marketplace. Through this method they can develop strategies also. In this manner, marketing mix strategy ofCadburywith its competitor likeNestle in the following manner:- BasisCadburyNestle ProductThiscompanydealsinconfectionery products The brand name of this firm is associatedwithhighclassqualityand amazingtastethroughwhichithas awardedsecondbestcompanyinthe world. Itsproductscan be categorised intofivemaincategoriesthatare Beverages, Gum, Candy, Chocolate and Biscuits. In addition to this, best selling items of this company are Dairy Milk, Jelly Babies, Black Jack chews and more. Special attention to quality of products and nutrition level show that this firm has gained a good position at marketplace. Thisfirmalsoofferswiderangeof products. Itisaprominentcompanywhose brand deals also deals in confectionery andfoodsectors.Throughrichness and good taste of products of this firm arelikedbymuchportionof population.Itemphasismoreon premium quality of commodities like Dairy products such as Nestle milk; ChocolateslikeMilkyBar,Polo; BeveragesasNescafeandthelast segment is Ready to cook foods which are Maggie, Pasta, Sauce and more. All these goods are available in best qualitywhichattainsmindsof customers in high manner(Malhotra, Birks and Wills, 2013). PriceIn order to keep attention and retention of customers towards its products, this firm offers the same on affordable price. In addition to this, pricing strategy of its Products of this firm like chocolate, Maggieandmoreareavailableon premium price policy. It has made a largeinvestmentinmaintaining 6
competitors are also not much high which giveopportunitytothisfirmtooffer products on not much low costs. Price rate of products also depend on area in whichitserves.Therefore,itserves commodities on low to high rates so that all kind of customers can purchase as per purchasing power of them. quality of items. Due to richness of quality, it doesn't offer items on low priceratesoranyothertypeof discounts.Thisfirmalsotargeted customersbelongtomiddleclass. Priceratesofchocolatesand beveragesarealmostsameasof Cadbury(Hagan, 2011). Thus, it has seen that price strategy of Nestle is mostlydependentonqualityof products, geographical area where it servesandcompetitorspresentat same marketplace. PlaceInordertogainlargecustomerbase, Cadbury has used to offer its products in most populated urban and rural area both. The main motive of this company is to “Taste like this feelings” so to achieve this, it has coordinated all departmental stores and outlets with latest and efficient technologiessothatnutritionlevel productsmustbehigh(Gummesson, 2011).Peopledon'tmakewrong perceptionaboutsuchconfectionery items that it will make them fatty or affect on their health, this firm concerns more on quality and hygiene level.This firm haslargeandeffectivedistribution channels whichdeliver commodities in fast manner without any mistake. For convenience of consumers, Nestle used to offer products on all locations. Inthiscontext,thisfirmmakes differentstrategieslikeselective distribution,franchisingtechnique, intensive and more to make distribute its products in almost every part of world.Inadditiontothis,ithas analysed that 90% of total sales, this firmgeneraterevenuebyselling productsinEuropeancountries. Mostly, it follows FMCG channel of distribution. 7
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PromotionThis company has used both online and offline techniques to promote its product or service in national and international marketarea.Foradvertisement,ithas used social media and own website which help in developing good connection and relationship with customers in an easy way. Along with this, it has also used high-class magazines and visual media to launch the same. For promotional activities, Nestle use uniquemarketingideassuchas Nescafetunes,Maggiewhichis associated with 2 minutes snacks and more. This company also use media likehoardings,TV,onlineads, hoardings and more. PeopleAs products are belong to confectionery business so, this firm targeted all sorts of high and medium class of people both. As ithasevaluatedthatproductsofthis company are available in almost every part of world. Availability of products are in found both in urban and rural areas. Along with this, provide products on both onlineandofflineprocedureaid consumers to acquire the same easily and enjoy every taste of it(Lamb, Hair and McDaniel, 2011). Products of Nestle are found in almost all type of categories. Behind quality of such items, the main effort is done by workers associates with this firm. Therefore, it focuses on recruiting the best people in workplace who are high skilled and able to manufacture high quality of items. Along with this, it target audience of all categories and offers products on different range of prices as per quantity so that people of each category can afford the same. ProcessThis enterprise has majorly focused on quality and freshness of products. It uses highest technology to make confectionery items. Along with this, to keep freshness ofitemsitusedtogivecoolstorage containers to shop keepers which shoes the best part of this firm. It will assist customers to buy such goods and enjoy As all commodities are belonged to high quality so, it concerns more on each and every step of manufacturing. But due to some rumours spread about products of Nestle like Maggie that I contains unhygienic ingredients, assist thisfirmtoconcernmoreon productiontechniqueandmade 8
taste.changes as well. Physical Evidence Marketing managers of Cadbury use to takeregularfeedbackandreviewsof customers who avail its products. This would help in improving and modifying its commodities in a high manner. Marketing team of Nestle also used to concern more on taking feedback of customersbyusingdifferent marketingtechniques.Itsmanagers used to read review of people by using its websites and social services. TASK 3 P4 A marketing plan for Cadbury Marketing of a company mainly focuses more on providing value to consumers by delivering products as per their needs and entailing complete information about business in a proper manner. It constitutes several activities for improving and enhancing brand image of a company which further aid in increasing sales performance of an enterprise also. In context with marketing plan, it involves entire activities which will be carried out for achievement of targeted goals and objectives of an organisation (Ebert and Griffin, 2015). It also highlights what type of programs will be carried out by marketing department through which revenues can be earned in a high manner. This type of plan made in both type of formal and informal structure as per demand of business. It shows mission, vision and objectives of a company that helps people associated with firm to understand their roles and responsibilities in a proper way and perform accordingly. A marketing plan also evaluate the current and desired position of an enterprise along with their competitors present in same marketplace. In addition to this, it suggest marketing and other departments of company to how to improve their performance and contribute efforts in achieving a good position at marketplace as well as giving a tough competition to rivals. But, in this process managers are required to conduct a proper market research which helps in evaluating problems occur in business related to low sales performance as well as procedure to resolve them also. Beside this it also aid in determining need and desire of customers also (Mihart, 2012). As per presentscenario, a marketing has to be formulated for Cadbury therefore, managers of this company are required to make a proper budget as per need of conducting activities of such plan. Currently,this firm wants to expand its market area and acquires a strong position. So, its marketing team use various techniques like SWOT and STP to evaluate strengths and weakness 9
of business as well as opportunities through which the same can be enhanced. These methods also help in analysing threats for business of company that act as barriers in achievement of success. Overview of Cadbury: Cadbury deals in manufacturing sector and produce confectionery products in almost all sector of the world. It was founded by John Cadbury in 1824 and headquartered in Birmingham, UK. Currently, more than 71,000 workers are working in this company whose efforts make happen to gain achievement like second best firm in the world. Mission and Vision Statement of Cadbury Vision:This statement shows purpose of business of an enterprise as well as short-term goal through which employees and employers can understand objectives and work accordingly. In this manner, Vision of Cadbury is “ Work in collaboration in order to create brands which people love”. Mission:This statement shows long term goal and primary objectives of a company as well as purpose behind existence of business. This would help in maintaining and developing business in global market. In addition to this, it also aid marketing managers in building strong and unique strategies through which brand image of a firm can keep for a long time. Thus, this company's mission statement is “Cadbury is another name of quality and promise to always keep this. Reputation of business is to build upon quality”. Goals and objectives of Cadbury: The main objective of Cadbury is to become the largest manufacturer in confectionery business in world (Campbell and Martin, 2015). Therefore, for achieving this objectives, its employers and management puts large efforts on making products of high quality and serve as per taste of targeted audience. In terms of long term goals and objectives, this firm wants to integrate beauty, reinforce supply chain and expand its business in more countries. Therefore, its marketing manager has formulate a marketing plan. The main purpose behind this marketing plan for this manufacturing industry is to increase its sales performance at international market. SWOT Analysis of Cadbury StrengthsWeaknesses Inconfectionerymarket,Cadburyis considered as world's leader whose products SomerumoursarespreadofCadburylike rodents in chocolates, infected food items and 10
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are available in more than 200 countries. Its commoditiesareblesseswithhighbrand loyalty.Itsmarketingstrategieslike'kuch meethahojaye'andofferproductsin celebrations pack on discounts help this firm in gaining advantage from competitors. more shows major weakness of this firm. It puts a large impact on sales performance also (Ormrod,2014). Thus, it needs to control quality of goods and make improvement in the same. OpportunitiesThreats If this firm overcome from its weakness then it will give opportunity to grab more attention of customers. By penetrating in rural market and distribute in such area in effective manner, aid Cadbury in boosting presence of brands. Due to health consciousness among people, puts a large threat over confectionery business. They are now started to avoid such products which may affect their health. STP Model of CadburySegmentation: As this firm has operated its business in various countries so determining taste and preference of each customer is a most complex procedure. Therefore, it has adopted market segmentation strategy through which people are divided on the basis of similar characteristics and demographics(Nguyen and Simkin, 2012).It would help in reaching potential customers.Targeting: Cadbury Company mostly targeted middle class people and offers them products as per purchasing power of them. Positioning: Slogan of Cadbury“Taste like this feelings” define high positioning brand of this company. As confectionery products like chocolate bars, drinking chocolates and more of Cadbury are liked by every individual belongs to each category of age. This part indicate the enjoyment and fun of products as per view of customers. Marketing strategy:In order to keep attention of every individual and assist them to purchase products, management of Cadbury use various marketing strategies (Berkowitz, 2016). To gain revenues and generate more profits, this firm needs to make modifications in system and 11
offer some new taste in products. For thisprocess, currently it wants to increasesales performance with atleast 20% more on annual basis. Execution:Itis considered as the main step in which management of Cadbury needs to execute all strategies in a proper manner. This would help in attracting minds of customers towards its products adequately through which targeted sales can be achieved. Evaluation: Under this process, management needs to examine methodologies, tools and techniques through which set goals can be accomplished in predetermined time. It includes sales and market share analysis techniques. Marketing budget Particulars1st year2nd year3rd year4th year5th year Initial money8000026000200001300022000 Investment24000140001700018000 Total8000050000340003000040000 Marketing expenditures Advertisement90008000800090006000 sales promotion60005000200060007000 Direct marketing70004000500080003000 Total2200017000150002300016000 12
Available balance580003300019000700024000 CONCLUSION It has been concluded from the above given report marketing is broad concept which needed to execute in all business firm in an effective manner. The marketing manager focus on attract large number of consumers by perform effective marketing related activities in significant way. Human resource, finance, production, marketing, sales, IT, research and development are various department which have interrelation with each other. It is essential that business activitiesareexecutedeffectively.TheHRdepartmentofCadburyfirmrecruitcapable employees which can perform their job responsibilities properly and effectively. In this report studied about comparisons between marketing mix of two different organisation. The roles and responsibilities of marketing has also been discussed under this mention report in significant way. 13
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