Marketing Mix Strategies and Practices

This assignment delves into the intricacies of the marketing mix, examining its core elements (product, price, promotion, place) and their interplay. It analyzes the impact of external factors on pricing strategies and explores how marketing mix efforts contribute to brand equity within the IT software sector. The assignment also considers additional marketing mix elements like people, process, physical evidence, and packaging, highlighting their significance in shaping customer perceptions and driving business success.

MARKETING PRINCIPLES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1: The various elements of the marketing process...................................................................1
1.2: Benefits and costs of a marketing orientation......................................................................3
TASK 2............................................................................................................................................4
2.1: Macro and micro environmental factors which influence marketing decisions..................4
2.4: How the Buyer's Behaviour Affects Marketing Activities..................................................6
2.5: Positioning strategy for chocolate burger............................................................................7
TASK 3............................................................................................................................................8
3.1: Product development to sustain the competitive advantages...............................................8
3.2: Distribution channels provide by halo company for customer convince.............................8
3.3: Pricing strategy for the new product....................................................................................9
3.4: Promotional activity is integrated to achieve marketing objectives....................................9
3.5: Additional elements of the extended marketing mix.........................................................10
TASK 4..........................................................................................................................................11
4.1: Marketing mix for consumer market segment...................................................................11
4.2: Illustrate the differences in marketing products and services to businesses (B2B)
consumers (B2C).......................................................................................................................12
4.3: Explaining difference between international and domestic marketing..............................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

ILLUSTRATION INDEX
Illustration 1: Elements of marketing process.................................................................................2
Illustration 2: External factors.........................................................................................................6
Illustration 3: Additional elements of the extended marketing mix..............................................12

INDEX OF TABLES
Table 1: SWOT analysis of Aldi Company.....................................................................................4
Table 2: Marketing mix comparison between rural and urban segment.......................................11
Table 3: Comparison between domestic and international marketing...........................................12

INTRODUCTION
Marketing principles plays an important role in competitive environment because with
the help of these principles, organisations can easily decide their planning and strategies. It also
includes the branding image of company and how firm promotes their new products and services
into market (Jobber and Ellis-Chadwick, 2012). Furthermore, it is a planning process where
company decides the price, place and promotion strategy for their new products and also
determine their target market. The present report is based on Aldi Company which is a British
organisation leading in retailing. Headquarter of this firm is located in Germany (Essen) and it
sells food, beverage and sanitary articles (Sheth and Sisodia, 2015). Mission of this organisation
is based to provide high quality services to their all customers. For this, company recently
opened its 55 new shops in the UK (Aldi, 2016). By doing such activities, manager of the cited
firm creates a positive relationship with their customers. This report also includes the elements of
marketing process and how management department of this Company maintains the chain of
demand and supply.
TASK 1
1.1: Various elements of marketing process
The elements of marketing are helpful for company because they accomplish goals and
objective of the organisation. By using marketing elements, senior management of marketing
department can easily plan strategies for the company (French, 2010). There are various
elements of marketing process which are used by Aldi Company and are as follows:
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Marketing strategy
Aldi Company’s marketing strategies are based on changing behaviour of customers. For
this, management department of organisation take time to time feedback from their customers
and according to their demands and preferences, department plan and program their new
strategies (Nwankwo and Gbadamosi, 2010). By following these activities, company can easily
understand the changing behaviour of their customers and provide the best services to firm.
Manager of this organisation divide their all departments on the basis of suitable segmentation.
By doing this activity, they develop efficiency of their employees and also manages the
coordination in their internal department.
Tactics and control
2
Illustration 1: Elements of marketing process
(Sources: Various Elements of the Marketing Process, 2014)

Usually, this work is done by the planning department of Aldi Company. For this,
employees plan an attractive combo for their customers in order to gain their attraction (Various
Elements of the Marketing Process, 2015). For example, Aldi Company provides different kinds
of schemes like buy one get one free, up to 30% off on sanitary items and in the winter; they also
provide big discount offers on their cold food and beverage items. Further, tactics are important
for company in earning revenue and it also raises the percentage of customers. By using these
schemes, company can easily gain the attraction of their customers and raise profit as well.
Planning
It is a third element in making planning where senior management authorities of the
company plan a marketing process. By using appropriate planning, firm can easily achieve their
all goals and objectives on time. In this element, planning department of Aldi Company decide
the price, place, promotion and target market for new products (Henley, Raffin and Caemmerer,
2011). For better development, managers of Aldi take time to time feedback from all the
departments. According to their reviews, firm changes their future planning which are based on
their internal management environment.
1.2: Benefits and costs of a marketing orientation
Marketing orientation is a model which is based on company’s products, services and
how organisation fulfils the demand of their customers on time. (Armstrong, Adam and Kotler,
2014). Aldi is a fast growing company so it is important for its management to evaluate the cost
benefits. By using cost orientation, company can easily analysis its cost operation in each
department. By using market orientation, firm gets lots of benefits and are as follows:
Building customer values
Aldi Company fulfils the demand of its customers and by doing this, firm gains the trust
of their clients. Furthermore, it helps them to create a positive relationship with them (BOSE,
2010).
Respond to demand
By using market orientation, firm can easily identifies the likes and dislikes of their
customers and planning department of Aldi Company plans their strategies according to their
expectation (Donovan and Henley, 2010). By this, organisation raises the level of demand and
increases their brand image as well.
Cost impact in marketing orientation
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The negative point of marketing orientation is that it is so expensive. Every year Aldi
Company spends lots of money in market research and development. Due to this, financial
structure of organisation goes down and managers cannot manage their all sections.
TASK 2
2.1: Macro and micro environmental factors which influence marketing decisions
Marketing environment of Aldi Company is based on the relationship between
organisation and their customers (Kim and Hyun, 2011). Further, it also includes the macro and
micro environment of organisation.
Macro environment of company is based on some factors and they are like; its
economical, social, political elements. For this, Aldi Company uses PESTLE framework which
helps to analyse the external factors that affect its business. Furthermore, micro environment
includes the strengths, weaknesses, opportunities and threats of company. For the same,
organisation uses SWOT framework to examine the internal and external situation of the
organisation:
SWOT analysis on Aldi Company
Table 1: SWOT analysis of Aldi Company
Strength
 Aldi Company is highly diversified and
for this, firm planning and development
department provides different kinds of
healthy diet products to their
customers.
 This company has strong market
orientation. Due to this, management
department can easily fulfil the
expectation of its customers.
Weakness
 The shipping cost of this organisation is
so high. Due to this, other country
avoids importing sanitary material from
this firm.
 This organisation spends lots of money
on marketing and advertisement
activities every year. For the same, the
marketing cost of company goes high
and profit of company decreases.
Opportunities
 Company recently opened its 55 new
shops in the UK and also adopted
digital marketing. By this, they can
Threats
 Due to government interference, the
producing cost of products and services
goes high.
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easily expand their distribution channel.
PESTLE analysis on Aldi Company
Political factors
The government of the UK changes their government policies on regular basis as per the
requirement. Due to this, misunderstanding increases which are related to the tax and other
policies. In the UK, labour income is so low due to this; the percentage of unemployment goes
high.
Economic factors
Aldi Company follows all the rules and regulation which are provided by the UK
government (Powers and Loyka, 2010). For example, organisation recycles all waste materials
and avoids using plastic bags at workplace and in their packing material.
Social factors
The lifestyles of customers are now changing and they are now more heath conscious.
For this, company changes its food products and includes healthy diet items in their stores.
Technological factors
Aldi Company recently develops its website for promotion. By using online website,
customers can easily book their orders and get all information related to products and services of
5
Illustration 2: External factors
(Sources:Ingenbleek and Van der Lans, 2013)

Aldi Company (Ingenbleek and Van der Lans, 2013). On other hand, organisation also uses
digital marketing for its promotions activities.
Legal factors
Aldi follows all labour and environment laws which are provided by the UK government.
Environment factors
Organisation recycles all waste materials and changes it into bio gas. Moreover, for
transportation activities, this organisation uses battery vehicles and reduces the negative impact
of air pollution.
2.2, 2.3: Segmentation criteria to be used by Aldi organisation with target strategies
Market segmentation is a new concept where company divides its all departments into
sub sectors and according to this; they select deserving and required employees. For better
development, Company launches its new products in food department. For the same, Aldi
Company has chosen chocolate burger as its new product (Churchill and Iacobucci, 2010). By
dividing all departments, management system of firm can easily put focus on each section. The
main motive of Aldi Company is based on to provide high quality products to its customers. For
this, mangers put concentration on customer’s satisfaction rather than product development.
Demography segmentation
In this, Aldi Company divides its customers as per age, gender, taste and income criteria.
By doing this, senior authority of company easily sets their focus on products and provides the
best services to their customers.
For example, for its new product chocolate burger, organisation put target on youngster
and children. The main reason behind this is their age group which shows willing to try new food
items and children like more chocolate items as compared to elders. So, company can easily sell
its new products and for this; firm changes its packing style as well. The packing department of
organisation uses attractive boxes and handmade paper for packing. So, customers can use this
new chocolate burger as a gift item (Zeithaml, Bitner and Gremler, 2010). Moreover, for better
marketing, management department uses digital marketing and also creates separate website.
This helps them to easily gain the attraction of their customers and raise profits.
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2.4: Buyer's Behaviour affecting marketing activities
Buyer’s behaviour analyses the requirement of client for particular product and its use.
Every year, Aldi Company launches so many products where some are based on food items so
some other products are related to sanitary items. But, all services and products of the cited firm
do not able to grab the attraction of customers. The major reason behind this is that customers
always purchase items which are profitable for them.
Major reasons which affect the purchasing behaviour of customers are detailed as follows:
Marketing activity
Good promotion plays an important role in marketing activity because with the help of
this, organisation can easily attract customers (Lovelock, Patterson and Wirtz, 2014). For this,
Aldi Company uses digital marketing and promotes new food products and other items through
social media sites. Furthermore, planning and development also use other methods of promotions
like sandwich man, advertisement on television and banner.
Culture and social factors
It is very important for Aldi Company to understand the needs and desires of their
customer which are related to culture of their country. For example, in the UK, it is very
common to invite friends and relatives for lunch and dinner. Further, Brazilian people love to
give gift items. For the same, they can use Aldi Company’s new product as gifts and organisation
also change its packing style and make their food items more creative (Gummesson, 2011). By
this, company creates a positive relationship with its customers.
2.5: Positioning strategy for chocolate burger
Chocolate burger is a new product of Aldi Company so it is important for organisation’s
development department to plan appropriate strategies. Major strategies which are followed by
firm for new product are as follows:
Channel differentiation
For market expansion, company has recently opened 55 new shops in the UK.
Management department can easily provide new products to all customers by making products
available at all the stores located in different parts. Moreover, for better customer relationship,
organisation opens its new website as well. By using this website, customers can also book their
orders.
Price differentiation
7

In this, Aldi Company provides new chocolate burger at different prices categories. By
doing this, company attracts its customers and maintains brand image as well.
Product differentiation
Aldi Company launches new chocolate burger for its customers. Further, packing
department changes their packing style of their product too (De Mooij, 2013). By following all
these factors, firm attracts customers and increases its profit.
TASK 3
3.1: Product development to sustain the competitive advantages
Aldi Company’s marketing strategies are based on three factors and they are; leadership,
product differentiation and focus on the demand and expectation of customers. For the same,
organisation selects cost leadership and maintain financial structure in their firm. For better
development, company launches its new chocolate burger at different prices. This helps to easily
attract customers and maintain their brand image as well. In product differentiation, company
changes its packing style and uses hard boxes and handmade paper for packing material
(Czinkota and Ronkainen, 2012). The main benefit of this is that by using these materials,
products look good and attractive thereby customers buys it instantly and can use it as a gift item
as well. As per the last factor, company management put their focus on customer’s demand and
expectations of the customers. For this, management department take time to time feedback from
its clients and according to their reviews, implement change in their products and services. By
taking feedback, company creates a positive relationship with their customers and raise its brand
image in competitive market. The main reason behind this feedback process is that customers are
the back bone of organisation and their suggestions and recommendations prove to be great
assistance in the development of the company. By using this process, firm can easily gain the
trust of their clients as well.
3.2: Distribution channels provide by Aldi Company for customer convince
Distribution channel plays an important role in the business. By using different channels
for promoting goods and services, Aldi Company can easily provide convenience of availability
to their customers. By using appropriate distribution channel, organisation can create visibility
and accessibility for their customers. Further, it also increases the sales of company’s products
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and services (Amasaka, 2011). Aldi Company follows five possible things for distribution
channel and are as follows:
 Right place
 Accurate timing
 Right products
 Right price
 Right quantity (Czinkota and Ronkainen, 2012)
Distribution channel is a part of marketing mix. For better efficiency, company provides
online facility for their customers. By using website of this company, customers can easily book
their order and get their items on time. In addition to this, organisation also follows three levels
of distribution channel too (Czinkota and Ronkainen, 2012). In this, customers give their order to
whole seller who provides products from the manufacturing unit of the company. By following
this process, organisation reduces the percentage of unemployment too as many people are
required to undertake this process. Moreover, firm recently opens 55 new shops in the UK which
provides 24 hour services. By providing all these facilities company creates positive relationship
with their customer thereby increases their profit (Krishna, 2011). Aldi Company arranges its
distribution channel by using global distribution system. On the other hand, by taking help from
agents, retailer, and websites, organisation maintains its distribution channel in order to meet and
satisfy the needs of its customers.
3.3: Pricing strategy for the new product
Aldi Company recently launches its new food product chocolate burger for youngster and
children. For this, product planning and development department use penetration pricing
strategy. In this strategy, company launches its new products at low prices and provides
attractive combo packs. By doing this thing, company grabs the attraction of the customers
toward new products (Sheth and Sisodia, 2015). After sometime, when product maintains their
position in market, organisation raises the prices of product and covers all old losses as well.
Skimming pricing strategy is also used for targeting the market and under this strategy
products are sold at higher prices for attracting large income group consumers (French, 2010).
When Aldi company launches new food category products it develops its marketing strategy for
selling their products at high profit margin and rate. The enterprise serves variety of food
products to its consumers and differential pricing strategies is used by it for selling different type
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of food products in market (Kim and Hyun, 2011). Different price are set for different king of
commodity. It helps in reducing risk for the business and increasing financial revenue of the
firm. In this technique price of the product is kept different in several market areas of the
company. Economic, legal and political situations of a country differ from one another and
differential price strategy assist a company in setting price of the product in assorted marketplace
areas (Gummesson, 2011). Different consumer segments can be created and proper action plan
can be taken for designing a proper marketing strategy.
3.4: Promotional activity is integrated to achieve marketing objectives
For drawing the attraction of clients, it is important for Aldi Company to use various
methods of promotions. For this, organisation uses different kinds of promotion activities and is
explained as follows:
Advertisement
In this, firm uses digital marketing and by using social media sites; firm promotes its new
sanitary and food items. Furthermore, for food item’s promotion, organisation uses banner,
posters and sandwich man.
Short term promotional
In this promotion activity, planning department provides coupons, loyalty vouchers to
their all permanent customers (Czinkota and Ronkainen, 2012). By using these coupons, clients
can purchase any items and get big discount on it.
Direct marketing
In this, company’s sales agent sells its new product to customers directly. For this, they
use door-to-door marketing (Jobber and Ellis-Chadwick, 2012). By doing this, firm grabs the
attraction of customers and also creates a favourable and long term relationships with them.
After sale service
Aldi Company’s mission is based on to provide the best quality services to their
customers. In this context, company provides after sale service to customer and maintain
pleasing and satisfying behaviour with them (3 More Ps, 2012). Further, by taking feedback,
organisation maintains its customer services in long term basis.
3.5: Additional elements of the extended marketing mix
People
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Customer is the key element for Aldi Company. For this, organisation sets its planning
according to client’s demands and expectations. For example, in China, people like rice products
as compares to other ingredients (Jobber and Ellis-Chadwick, 2012). Company thus, understands
their needs and launches new product in China which are based on rice. This enables
organisation to create good well being with its customers in order to generate more revenues and
earnings.
Process
It is the second element of marketing mix. In this, organisation decides the distribution
process for its products and services (Sheth and Sisodia, 2015). For example, Aldi Company uses
three levels of distribution channel. By using this, organisation reduces the percentage of
unemployment and generates major productivity through best utilisation of resources.
Physical evidence
The last element of marketing mix is based on physical evidence. For example, company
provides door-to-door services to their clients.
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Illustration 3: Additional elements of the
extended marketing mix
(Sources: 3 More Ps, 2012)

TASK 4
4.1: Marketing mix for consumer market segment
Total market is a combination of two parts, where first is based on customers and second
one is based on business marketers. In customer market, all products and services are based on
the needs, desires and expectations (French, 2010). On other hand, the business market is based
on the competitive market. The difference between buyer and customers market is as follows:
Table 2: Marketing mix comparison between rural and urban segment
MARKETING
MIX
RURAL SEGMENT URBAN SEGMENT
Product In this, company produces its
products as per middle class people.
Further, products containing all
requirement of consumer which they
expect from firm.
In this, company uses high quality
products. Further, packing style of
products is unique and influencing.
Pricing The price of products is low so,
middle class people can easily afford
it.
In production department, company
uses high quality products (Armstrong,
Adam and Kotler, 2014). Due to this,
prices of various services are high as
compared to other products.
Distribution of
product
In this, organisation follows three
levels of distribution channel.
In this, customers book their order by
using company’s website.
Promotions Usually, company do not follow any
kind of promotion activity.
In this, company uses digital
marketing for the promotional activity.
4.2: Illustrate the differences in marketing products and services to businesses (B2B) consumers
(B2C)
Aldi Company uses different methods of marketing its products and services. In B2C,
Company put major focus on customer’s needs and satisfaction and for this, management
department time to time take a feedback from their customers and according to their reviews,
firm sets their strategies. In business to business, organisation tries hard to build faithful
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relationship with businessmen of another country. When company launches its new product and
services, they use B2C and by this; they create positive relationship with their customers. The
major negative point of B2C is that it is time consuming and in this; the distribution channel is so
long as compared to other services (Donovan and Henley, 2010). Due to this, it is important for
Aldi Company to provide coupons, loyalty vouchers to their customers and reduces side effects
of B2C services.
4.3: Explaining difference between international and domestic marketing
Understanding the difference between international and domestic marketing is necessary
for Aldi Corporation which contributes effectively to develop business strategy by considering
various factors in the market (Czinkota and Ronkainen, 2012). In addition to this, comparison of
national and global marketing is described below in the table.
Table 3: Comparison between domestic and international marketing
FACTORS DOMESTIC MARKETING INTERNATIONAL MARKETING
Government issues Due to domestic firm, management
of Aldi faces very less government
issues in the United Kingdom.
Organisation suffers with high issues
due to less knowledge about
employment, health and safety
policies in the different countries.
Risk Management of Aldi does not face
more issues due to awareness of
rules and regulations, nature of
people and culture.
Corporation faces high problems due
to lack of knowledge and information
of these aspects in the international
market.
Barriers Organisation faces very less
problems regarding barriers.
On the other side, management of
Aldi suffers with higher trade and
tariffs issues in different nations.
Culture Aldi firm is familiar with local
culture like colour, pattern,
preferences and products liking of
local population thereby it does not
create more complexities to sell its
Corporation faces higher
complexities due to lack of
knowledge and information regarding
various aspects in the global market.
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products in the local market.
CONCLUSION
From the report, it is found that marketing elements help the management of Aldi to
develop effective strategies in the retail sector. Economic and political factors contribute
effective role to take appropriate marketing decisions in the market. Further, demographic
segmentation helps Aldi to divide the consumers in an appropriate manner. In addition to this,
organisational positioning strategies support the corporation to create effective image in front of
consumers in the food sector. Marketing mix strategies aid the enterprise to increase sales of
retail products in the market. It can be concluded that different aspects like culture, government
issues and barriers provide better understanding to Aldi Corporation for expanding its business
by developing effective strategies in different countries.
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