This assignment focuses on various methods of promoting products across distinct marketplaces to establish positive goodwill. The marketing team's duties include encouraging organizational goods and impressing consumers. Effective marketing plans are essential documents designed by organizations to achieve business objectives.
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MARKETING ESSENTIALS
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Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 P1 Roles and responsibilities of marketing department..............................................................1 P2 Roles and duties of marketing relate to wide organizational context....................................3 TASK 2............................................................................................................................................5 P3 Comparison between marketing mix.....................................................................................5 TASK 3..........................................................................................................................................10 P4 Marketing plan.....................................................................................................................10 Overview of ALDI..........................................................................................................................1 CONCLUSION................................................................................................................................4 REFERENCES................................................................................................................................5
INTRODUCTION Marketing is an ongoing process whose main objective is to promote organizational products and services across distinct marketplace as well as engaged in informing customers about specific goods. In this modern world entire corporate companies are focussing on their advertisementstrategiesbecausesalesofanenterpriseistotallydependuponeffective marketing. Retail industry is growing in a rapid sense because of increment in consumer demands and clients are curious to try something new or unique (Baines, Fill and Page, 2013). ALDI is one of the most successful company engaged in manufacturing creative items in order to fulfils the basic requirements of distinct customers. At the same time, it is also identified that number of competitors are emerging in retail sector such as IKEA is a major competitor of ALDI because they are coming with close substitutes. Thus,thisassignmentisgoingtoclassifiedintothreepartsforexplainingthe indispensable roles and responsibilities of marketing department and its interrelationships with other functions. Along with this, an effective comparison of ALDI with its competitor IKEA is also going to discussed on the basis of 7P'S. Furthermore, an appropriate plan is also deigned by considering necessary elements for attaining set goals in a defined time frame. TASK 1 P1 Roles and responsibilities of marketing department It has been identified that organisations now-a-days practice customer centric approaches through distinct marketing processes. The marketing function of an organisation plays a crucial roleasit ensures thatproducts whicharebeingdesiredby the consumersarecreated, communicatedandultimatelydeliveredtoconsumerswiththerightapproach(Bowie, Paraskevas and Mariussen, 2014). The role which has been catered by marketing function revolves around making sure that needs of target customers are being fulfilled and they are satisfied with the offering by an enterprise. The role of marketing is further enhanced as there is a significant rise in the competition in the market of the United Kingdom. Aldi is an organisation which is known to provide low priced quality offerings to people which simultaneously have introduced a price war amongst other renowned chain such as Lidl and Tesco. Therefore marketing function is heavily relied upon by organisation so that major they are able to sustain their operations in the target market. 1
Marketing function arises a major scope through which more and more people could be persuaded to avail offerings of an enterprise. Therefore a organisation allocates a major section of the budget to marketing activities so that a business is able to develop a competitive edge amongst rivals. The budget is being rightfully utilised by the marketing manager in making sure that all the activities are carried out in the right manner. The trends in market along with preferences of customer are undertaken so that right strategies for marketing could be developed on behalf of an organisation (Brassington and Pettitt, 2013).This feature will assure that products and services which are being offered by the business are appreciated by customer base of this supermarket retailer. The application of marketing strategies are carried out with a view to enhance existing customer base along with enhancing reach of products and services in the operating market. The grocery items which are being offered by this German based retailer are often opted by the people over products of rival due to pricing strategies and quality oriented offerings. The various types of marketing function which are being played within an organisation are as follows: Marketing Research:Research can be referred as primary function which has been played by the marketing team in an organisation. It is a crucial attempt by the marketing domain which helps in identification of needs, wants and desires of the customer base of the company. The information which has been collected through marketing research is further channelised in making sure that suitable products and services are being offered to consumers. This research will assist an organisation in gaining familiarity with characteristics of consumers along with identifying what, why, when and how of their buying pattern. The determination of level of income will help an organisation in carrying out effective pricing strategies ensuring higher sales figureandprofitsforabusiness(Cleverley,2017).Theresearchprovidesabasisfor segmentation of customers which can later be targeted with promotional services. A business can makes use of tools such as observation and questionnaire so that views and opinion of prospective buyers of a company can be identified and capitalised. Distribution channel selection: The distribution channel determines manner through which goods and services will be delivered to consumers. This supermarket retailer is making use of its retail outletswhich are approximately 10,000 in number present in more than 20 nations around the globe. The demand which has been generated through marketing activities is only fulfilled when an organisation is able to make best use of its retail stores. It is very 2
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important for this business to identify presence of prospective buyers on geographical grounds and making sure that they are catered with outlet in their neighbourhood. It has been a crucial function which is to be catered by marketing as it ensures that goods being made available to buyers in an convenient and cost effective manner. PromotionalActivities:Accordingtothiselement,marketingdepartmentofan organization is engaging in encouraging organizational products or services at marketplace. As a result trying to gaining maximum benefits by satisfying clients requirements in a given time frame (Clow and James, 2013). P2 Roles and duties of marketing relate to wide organizational context Marketing functions has its important role in organisation as well it is important in every type of enterprise it can be large scale or small scale. This involves several advertising and promotional tools and techniques. This is the department which which put their efforts in attracting more and more customers which help in generating profit. For getting best outcomes in companymarketingdepartmentofALDIcommunicatewithotheralsosuchasfinance, manufacturing, product development, selling and many others. Marketing division assist in conducting research also which is important for identifying need and wants of customers, current market trend as well feedback of buyers about existing products. Retailsectorislargewhich have many companythisresultsin high volume of competition. Major competitors of ALDI is IKEA, TESCO and many other to look distinct from other enterprises marketing department play important role. In an organisation there are several activities which take place at single time period that should be managed in proper manner. Roles and responsibilities of marketing in relation to the other organisational factors are explained below:- Research and development –This is important for organisation so they can identify several market related trend as well customers needs and preferences (Desai, 2013). Research should be conducted by marketing team before developing their products in market or a project. It play important role in satisfying customers needs and wants because they are important part of business environment without their satisfaction no firm can sustain in market for long duration. Marketing assist in constructing new ideas, establishing market, also in developing products and services in market. Marketing team have its main focus on that they will bring such product in 3
market which can satisfy current market and customers. As well result in generating large amount of profit. Administration –This is the whole authority of organisation they are the person who run an company. They are the management team whose main motive is to accomplish the task in effective manner as well without administration no organisation can exist in market. The person involved in enterprise are managing directors, chief executive officer, board of member, stakeholders (Dibb and Simkin, 2013). Every firm has an HR department also whose major work is for hiring candidates , look all the issues of staff member and work for their benefits also. Same departments are also in ALDI for its smooth and easy working. Human Resource and marketing both department are interlinked because if there is requirement of employees for doing marketing work then marketing manager will tell to HR and they will conduct recruitment and selection process for it. Apart from this there is requirement of budget because without resources no department can do their work. Same in the marketing also budget is the thing which is approved by top level administration of firm. Customers Services –Major work of customer services in organisation is to solve issues or problems of the customers through which they are going on. Thus, ALDI have an call number on which buyers can call and solve their issues with customers service executive of company. After providing solution by executives they can ask for feedback also from their clients related to provided services. In this work direct interaction with customers take place which s important for identifying their opinions, views, taste and preferences related to existing as well new launching goods. Hence, ALDI is providing best customers services so that their buyers will never get unhappy through their servings. Goals and objectives can be achieved in better manner which is important for sustain in market. Distribution –This is related to the distribution of goods and services which is important. Because without proper distribution no one can fulfil needs and wants of customers in market area. Through, distribution process ALDI serve their offering to their target customers as well there is requirement of proper channel for this which can be decided by marketing department. It simply means that it is the process of outsourcing only for fulfilling need and wants of customers (Durmaz, 2011). If there is perfect source that only company can generate large amount of revenue and profit. 4
Finance –Finance is the backbone of business without this no company can survive in market for long. Because for meeting day to day activity there is requirement of funds as well finance is the most important factor for starting an organisation. Capital which is invested in business is necessary for doing overall activity of ALDI. In enterprise activity can be small or big both but they require funds for completing it in effective manner. For doing marketing activity related to advertisement, promotion and several other required proper funds. ALDI is large organisation which have several department in it every division need finance both doing their work. ICT (Info Communication Technology) –As per the current scenario technology is a foundation of each and every company, in retail sector it is helpful, because through this company can sell their products online and customers can track delivery order of their goods (Fazlollahtabar, Aghasi and Forte, 2012). Their are some technologies related to this which can help in communication within the organisation so that information can be transfer from top to lower level. It is also beneficial for business objectives, because marketing team can evaluate the data and through analysing this they can recognize the path where they are going, and if there are efforts required that can implement easily. Production –Production department is totally related to marketing division because they identify needs and wants of customers as well current market trend then after it production department start its work. Thus, production department must be remain in touch with the marketing division so that it can fulfil needs of customers in target market place. This is the top department which require funds, human resources, equipments and marketing tools or techniques for attracting customers. TASK 2 P3 Comparison between marketing mix 5
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Marketing mixALDIIKEA ProductALDIoffersaffordablefood productsthatsimilartothe quality of other brands. The products are sourced from the selectedsuppliersandthat's why it has low cost. Moreover, thefoodandbeveragesthe firm also offers other products likevegetables,healthand beauty care products, apparels and electronic products along with household goods(Fırat, 2013). IKEA is renowned name for furniture and it can be divided forbabyandchildren’s products,eating,bathroom stage, desks, mirrors, beds and mattresses,chairs,cooking, clothesstorage,decoration, leisureandsafetyproducts. Alongwiththeseproductit also keep the kitchen cabinets andappliances,lightning, small storages, room décor like sofa and rugs and other home adorn stuff. PriceALDI has a strong customer bondbecauseofthecheap priceandqualitywhichis offered only by itself and not anywhereelse.Itusesunit price strategy for the groceries so that customer's can easily compare the price with other brands. Market penetration is usedatthetimeofofnew entry with a low price and to gain the market share quickly. The loss leader pricing method is used to get the customers at the door of the store for other Itoffersahugerangeof furniture for house and offices with low cost. It also offers freebies at the IKEA restaurant six days of the weak.
PromotionALDIisusescost–saving strategies and because of that the it invests low amount on the promotions. It has a 'super buys' offers on the available stocks on every weakened. It informs its customers through newsletters,emailsand messages. It prints a newsletter withatitle'ALDIinforms' whichgivestheinformation about the products. It also has a 'swap and save' that make the customersswitchfromtheir brands. The another promotion strategy is that 'Like brands' keepsthecustomertrustin cheap products. Itfocusesonthemarketing activities for promotions like TV,print,onlineads, billboards,sponsorships, newspaper,magazinesetc. Some of the advertisement of thefirmputitoninthe controversy.Oneofits campaignisKitchenparty advert and 'Be Happy Inside' to supportthebrand.Iticonic yellow logo is also makes it different from the other brands (Gertner, 2011). PlaceALDI hasa group of 8000 stores in almost 18 countries. It keeps it stores layout very simple to sale the products at affordable price. It purchases various products in bulk store atwarehousetoavailthe products at its store easily. It alsoreducesthewasteand transportationcostofgoods anditalsousesthe environmentfriendly The firm is serving over 50 countries and there are many retailstoresintheEurope, NorthAmerica,Asiaand Australia. The store also has restaurants, food shops and a Swedish market. 8
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equipments in the stores. PeopleALDIdoesnotrequirethe salesforcetoassistthe customer in selection. As it is organized in such a way so that people can easily select their productand that'swhy thereemployeeswillassist themonbillingtimeonly through scanning the products. The firm is based on the storng relationship with the customers andtheirsatisfaction.The employees believes that their ideaistofurnishthehome adornments.Theemployees areenthusiastictooffers services.Therearealmost 1,16,000employeesinthe retail,18000insupplyand 21000production approximately. ProcessALDI has transparent layouts that's why it is easy to find the desired products and it reduces the sales force to assist them. It haslimitedqualityproduct that's why the people can make quick decision in selection of productsthatreducesthe decisiontime.Theproducts has large barcode that helps in fast billing process. The firm has several business processalongwith44 productionunitaroundmore than 10 countries. It makes its own woods through sawmills toproducethehighquality furniture.Theinhouse productionfacilitiesare outstanding with the developed technologies. It has the unique supplychainandinventory techniques (Hamilton, 2011). Physical evidenceItisarenownedbusiness process,standardizationand global pricing. It keeps almost 85% stock from home brand and the rest is from the other IKEA has claims to have more than 350 stores in almost 50 countries. It has a huge store layoutwithspecificpath layouts that guides the people 9
recognizedbrands.Italways keepthelowpricesinall stores. to the way of desired location of their products. The store is alsohavingrestaurantalong with baby handling areas for the mothers. There is a huge space for parking. TASK 3 P4 Marketing plan Marketing is all about promoting goods or services across distinct marketplace with the help of several methods such as; social media, magazines, newspapers, online marketing, brochure and so on. At the same time, it is identified that management of all these elements are not an easy task due to the involvement of various complex procedures. For example; impressing the clients is a tough job because every individual is having distinct opinion towards certain subject area. Thus, ALDI is believing in designing an impressive marketing plan which is consider as an effective document consist of several necessary elements for attaining set objectivesorgoalsinagiventimeduration.Marketingplanishighlybeneficialfor organizational success as it aids in controlling probabilities of losses by assisting employees towards corrective directions (Jones and Rowley, 2011). Therefore, an outstanding plan is gone through proper procedure or steps for considering necessary components. Executive summary:-Initial step is to plan various scheme or procedure by considering elements in order to control probabilities of mistakes. Overall marketing plan is going to highlight various components which are playing crucial role in directing staff members towards corrective path.Promoting plan of selected firm incorporates every basic point that must be trailedbyassociationoforganizationwhileaccomplishingobjectives.Ithasdifferent componentswhichincludesunderthis,tobespecific-organizationreview,situational investigation with the assistance of outside and inward, spending plan, which is required for stores with to control and actualizing over wastage. 10
Overview of ALDI Aldi is one of American's favourite grocers. It is the common brand of two German discount supermarket chain with nearby 10,000 stores in approx. 20 countries. ALDI is based in Germany, and founded by two brothers Karl and Theo Albrecht in 1946. The business is was split into two separate groups in 1960. The ALDI group has about 8,000 stores in worldwide. It offers fresh meats, fresh produce items, wines and beers, and home goods. They provide their customers with a focused range of high quality products at the best price. It is highly efficient operation enables us to achieve cost leadership in the market and optimize profit (Joshi, 2012). Swot analysis of ALDI Strength ALDI enjoys a very strong customer support, for their wide range of choices at reasonable prices which people shop for daily needs. Discount stores like ALDI get able to attract more customer because of their low prices. Due to store client get the affordable price for the day to day product as compare to the competitors. ALDI have a strong product mix which takes more than 25% of the total shelf space. The strength of the product mix is different products with different brand under one product category. They have a premium brands as well as private brands. Weakness ALDI stores are associated as a cheap rate stores and low quality items. Due to low price its considered as a place for low and medium income groups not for high income groups. This make very rare penetration of high incomes at these stores. The business has a very low advertising campaign as the people have the perception that is a cheap and low product store. This need to be change with the help of effective PR team and advertising campaign. Opportunity Company have a great opportunity to expand in the growing economies such as Asia and Africa. Brazil and India have the massive population and people in fact can afford ALDI products easily.
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In today's time customers need are growing with increase in spending, at that time customer is ready to pay high for services than discount stores can charge higher price for better quality services. Business can invest more in advertising campaign to keep up with the competitors. As the marketing make customer aware about the product which directly increase sales. Threats ALDI faces a lot of competition from other businesses such as CARREFOUR , TESCO , LIDL,Walmart,Best Buy etc. Many companies moves into a grocery trade and become a big threat for ALDI like amazon pantry. Established brands can affect the private label brands of ALDI . Risk associated with global economy effect the ALDI like BREXIT harm many businesses. External factors:-Macro elements are falls under this category and these components are having major impact on company performance because policies of an association are depend upon legal bodies only.Other outside components which influence a systematic political, condition, social, mechanical and economy, that has immense factor to impact an association. Political factor can be affect on ALDI, when it moving its business crosswise over nation limits, around then it must know about political issues. Ecological viewpoint characterizes condition of a nation, merchandise and enterprises has major influenced by this, while in social perspective, how populace reacts to another a wander, what is the vision of neighbourhood open as per environment, mechanical variables ought to receive present day methods which is gainful for clients and business perspective since it is eventually reflect to benefit, as in wording a client dependably needs an agreeable ride with extravagance security vehicle that is the principle rationale of a rider, innovation additionally give an input, so that, it is known to a firm that what sort of alteration ought to do to draw in end clients (Khan and Adil, 2013). Prudent factor permits a to assembled focus on that is in the long run reach through by the assistance of monetary speculation, which is required in every emphasis notwithstanding when business will stretch out crosswise over boundaries. Strategies– Strategies needed to connect towards hierarchical objectives by including a line of set of accepted rules, that unquestionably builds add up to income of a firm. To achieve a state in showcase, Porter's five model is a standout amongst the most proper model that apply 2
under dangers to substitutes, contenders, providers and dealing intensity of clients, incorporated into this, it serves to outlining and arranging of various procedures inside association, to get comes about. Objectives- First or foremost motive of an organization is to gain maximum benefits by gaining competitive advantage as well as dreaming to defeat their competitors available at marketplace such as; IKEA, Lidl and so on. Budget:-It is a financial plan for a defined period of time or interval. It may include planned sales, resources quantity such as the amount of inventory stores to ALDI in their warehouse which can be used in emergency. This tools helps in providing a forecast of revenues and expenditure of a company. Budget for Marketing Plan Particulars 1st year 2nd year 3rd year4th year5th year Beginning fund200002500480042005600 Capital17500152001580014400 Total2000020000200002000020000 Marketing expenditure Exposure70008000600050007000 Sales promotions20002000300020002000 Target marketing30001500250025001500 3
Internet marketing30001000200020002000 Socialmedia web marketing10001000100010001000 Printmedia cost500700300400550 Occasional events10001000100015001000 Total1750015200158001440015050 Control-The controls helps in to maintains the inventory. This assist in managing the cost reduction in the company ALDI. CONCLUSION From the above report it has been summarized that promotional department is playing a crucial role in enhancing the organizational performance by accomplishing distinct job role in effective way. For example; engaged in informing entire society about relevant information of various organizational products or services. Thus, an organization needs to consider marketing elementsformaximizingtheirsalesperformancebysatisfyingthecustomersneedsor requirements. However, above project is focussing on several methods of promoting products across distinct marketplace in order to establish the positive goodwill at marketplace. Some of the major duties which is played by marketing team is that; encourage organizational goods, impress various consumers and so on. Throughout the study it has been assessed that marketing plan is an effective document which is designed by an organization while running their business operations. Hence, with the use of effective plans selected firm can easily attain their set objectives or goals in a defined time frame. 4
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REFERENCES Books and Journals Baines, P., Fill, C. and Page, K., 2013.Essentials of marketing. Oxford University Press. Bowie, D., Paraskevas, A. and Mariussen, A., 2014. Technology-driven online marketing performance measurement: lessons from affiliate marketing.International Journal of Online Marketing (IJOM).4(4). pp.1-16. Brassington, F. and Pettitt, S., 2013. Essential of marketing. Cleverley, W. O., 2017.Essentials of health care finance. Jones & Bartlett Learning. Clow, K. E. and James, K. E., 2013.Essentials of marketing research: Putting research into practice. Sage. Desai, S. S., 2013. An analysis of the competitive marketing strategies of the hospitality industry in UAE.IUP Journal of Management Research.12(1). p.22. Dibb, S. and Simkin, L., 2013.Marketing essentials. Cengage Learning. Durmaz,Y.,2011.Atheoreticalapproachtotheconceptofadvertisinginmarketing. International Journal Economic Research.[23 Januari 2015]. Fazlollahtabar, H., Aghasi, E. and Forte, P., 2012. Bi-objective two-stage decision-making process for service marketing.International Journal of Strategic Decision Sciences (IJSDS).3(3).pp.24-39. Fırat, A. F., 2013. Marketing: culture institutionalized.Journal of Macromarketing.33(1). pp.78- 82. Gertner,D.,2011.A(tentative)meta-analysisofthe‘placemarketing’and‘place branding’literature.Journal of Brand Management.19(2). pp.112-131. Hamilton,C.,2011.CengageAdvantageBooks:EssentialsofPublicSpeaking.Cengage Learning. Jones, R. and Rowley, J., 2011. Entrepreneurial marketing in small businesses: A conceptual exploration.International Small Business Journal.29(1). pp.25-36. Joshi, M., 2012.Essentials of marketing. Bookboon. Khan, M. N. and Adil, M., 2013. Data analysis techniques in service quality literature: Essentials and advances.Serbian Journal of Management.8(1). pp.95-112. Online Definitionof'MarketingMix'.2018.[Online].Availablethrough: <https://economictimes.indiatimes.com/definition/marketing-mix> Unit2MarketingEssentialsAssignment.2012.[Online].Availablethrough: <https://www.locusassignments.com/solution/unit-2-marketing-essentials-assignment- solution> 5
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