Marketing Principles and Practices

This assignment delves into fundamental marketing principles and practices. It examines various marketing approaches, including the traditional marketing mix (product, price, place, promotion), the influence of social engineering and social marketing, and the impact of digital platforms on consumer behavior. Students will analyze case studies, research findings, and current trends to demonstrate their understanding of how businesses effectively utilize marketing strategies in today's dynamic environment.

MARKETING
ESSENTIAL

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Roles and responsibilities of marketing function...................................................................1
P2 Roles and responsibilities of marketing in wider context......................................................3
TASK 2............................................................................................................................................5
P3 Comparison of two companies by considering marketing mix.............................................5
TASK 3............................................................................................................................................7
P4 Marketing plan of Aldi'..........................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
All the actions which are performed for increasing revenue like promoting products,
advertising etc. in order to ensure high customer satisfaction are known as marketing (Purvis,
2016). Every organisation want to increase their profits and marketing activities play crucial role
in assisting managers at the time of forwarding towards company's goals. Aldi is a one of the
most successful company of retail sector. They have stores in 20 countries and they are hold a
strong position among top five companies in UK retail industry. This assignment will discuss
about various marketing function which are essential for in every organisation. Interrelation
between different departments of the enterprise will also become part of this report. Marketing
mix of two companies will be compared for ascertaining their performance. At the end, a
marketing plan will be made for Aldi.
TASK 1
P1 Roles and responsibilities of marketing function
The significance of marketing is continuously increasing because this a department which
is responsible for bring business in the company and they play an important role attaining set
objectives of the organisation (Marketing Essentials, 2017). The function of this wing of
company start from providing all the details about various products which people want to buy
and it end when company get assurance that customers are happy with the products and service
of company. Below are few key roles and accountabilities of marketing function:
Pricing – One of the most important responsibility of marketing wing is to set best price
of a product. This division help managers in finding the exact price which people are ready to
pay for a product or service. Aldi is operating in retail industry and they are selling wide range of
products in their store. If they will not set appropriate price i.e. a rate which is best for company
and customer, then they will fail to attract large number of customers. Organisation want to et a
price at which they can earn maximum possible profit and at the same time customer want a
goods at a rate which comes under their buying power and they feel that they are getting right
value for the money which they are paying for a product. It is the responsibility of marketing
function to set most appropriate price of all the commodity so both company and buyers remain
happy.
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Promotion – The importance of advertising has increased in past few years and it is the
responsibility of marketing function to make an impressive advertisement which motivate
potential customer to buy products from the store of Aldi. Beside making attractive and
interesting advertisements, this department is also play significance role in deciding the right
platform at which advertisements will be get telecast. Like of very company, Aldi has limited
financial resources and they cannot spend all the money on advertisements. Marketing wing is
accountable for making and promoting products and brand name of company. Another role of
marketing function is to make lucrative offers, gift cards and decide special discount on different
products which are present in the stores of Aldi.
Selling – The basic concept of selling to sell goods to buyer against money which is paid
by buyer. It may look like an easy process but for a big organisation like Aldi, it is not. It is the
accountability of marketing function to make good and personal connection between company
and their customers. Aldi has many salesperson in their stores, their main job is to provide all the
details about a commodity and resolve queries of customers. They try to make personal
connection with buyers and do all the work which is done by wholesalers and retailers (Nguyen
and Simkin, 2012).
Product (service) management – Managing a product is a difficult task because it
contain different activities like Planning of product, forecasting its demand, manage product life-
cycle etc. Marketing function is limited to convince people to buy products, this division take
accountability of forecasting demand of all the products so they can keep right number of goods
in their stores. Beside this, they also plan all the appropriate position and target market for every
product because success and failure of all the commodities depends on how they are promoted in
their brand and services in the market.
Financing – Although finance department is responsible for managing all the activities
related to finance but marketing team has to manage money which is allotted to them. They does
not required much fixed capital but they require huge working capital. Their role is significant at
the time of making any deal related to purchase or sale. This department of the organisation is
responsible for dealing with different vendors who want to sell their products in the store of Aldi
and they also deal with those buyers who are interested in buying goods by giving bulk orders.
For this, marketing team get money and it is their job to manage it in appropriate way.
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Marketing information system (MIS) – In Aldi, every department has to manage their
own data. One of the most important marketing function is to use MIS for gathering, storing and
analysing all the data which can help company in increasing their profit and manage all the
activities related to marketing in proper way. They are accountable for proper use of this
information system which can provide some extra edge to company over their competitors.
Distribution – Aldi has their stores in different part of this world. If these stores will not
get right quantity of goods in a specific period of time then company may suffer huge loss.
Marketing function focuses on appropriate distribution of goods so demand of every store met in
right time and smooth operating of company can be assured (Moini, 2012).
P2 Roles and responsibilities of marketing in wider context
Multinational corporations have various department. Each division has its own
importance and if they do their job in proper manner then company succeed in attaining their set
targets. Below is the responsibly of marketing function at the time of considering their
interrelation with different departments:
Marketing and production – Manufacturing unit of Aldi seek various details about
market. They want to know about which product has how much demand in market so they can
increase or decrease its production accordingly. Marketing wing has all the details about what is
going in the market and what customer want to buy in the stores. They are responsible for
providing important detail about customer perception and what modifications they seek in new
products which company is going to sell in their outlets.
Research & development and marketing – Research team of every company need
various kind of information so they can do their work and develop new systems, policies or
products according to the information which they have in their hand. Marketing team of Aldi
collected all the data and information about market and it is their duty to assist this division of
company so organisation can achieve their targets. Importance of research and development
wing has grown in last few years because they play crucial role in providing competitive
advantage to a company. But, they cannot do this work without getting help of marketing team as
they have ground details (Mittal, 2014). Marketing wing of Aldi is accountable for providing
organise data and other key information to this division.
Finance and marketing – Money is considered as backbone of every company. Finance
department of Aldi has to perform various activities like make decision regarding which source
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of finance is most appropriate for company, select right area of investment etc. Marketing team
have details about all of their competitors and they collect and evaluate all of their statistical
figures which shows rivals companies performance. Their role is important at the time of
assisting finance wing when they try to decide that which is most appropriate source for
company. Marketing wing of Aldi has knowledge about Tesco, and other key players of retail
industry. They support finance wing by providing them details about their investments and other
financial policy (Mihart, 2012).
Human resource and marketing – Human resource is nowadays considered as one of the
most important wing of an organisation. Marketing team consist of thousand of employees. Aldi
is a big organisation and they have global presence and workforce. Marketing department is
responsible for providing correct and essential details about what type of people should come in
marketing team. They are responsible for providing right set of skills which marketing team need
so company can perform better and increase their revenue. Marketing division is also responsible
for improve brand vale and name of company. When an organisation has high value of goodwill
and they have good image in the business world then talented and skilled people like to work in
that organisation. Indirectly, marketing team support HR department in giving them right pool of
talent which they ensure that best person for a job is selected in the company.
ICT and marketing – IT division of a company provide great support to the organisation
by helping them in earning competitive advantage. They store and process huge amount of data
and try to reduce cost of business (Maghaireh, 2016). Aldi also has this department and
marketing team is responsible for supporting them when this division of company make software
which is to be used in whole organisation. Marketing them give them valuable feedbacks so ICT
division and make necessary improvements in their system.
Distribution and marketing – Aldi is operating in many nations and running business in
a successful manner is not possible when company do not have a sound distribution wing.
Marketing team possess information about all kind of customers and different locations. They
provide best information about best routes and systems which distribution department can use at
the time delivering goods. It is duty of marketing team to provide significant information about
distribution network of rival companies so Aldi can provide strength to their distribution division
accordingly.
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TASK 2
P3 Comparison of two companies by considering marketing mix
Business entities have to make plan for all the activities which they perform in their
organisation. They understand that if they will not focus on key few areas then they may fail to
get desired outcome. Aldi is a leading firm of retail sector in UK and they have many
competitors in this country. Tesco can be considers as their key rival because this company is on
number one position in UK. Below is comparison between both firm by considering marketing
mix:
Basis Aldi Tesco
Product This organisation provide
affordable goods whose
quality is similar to expensive
brands i.e. other brand which
are sold in expensive stores.
This company keep their focus
on providing wide range of
variety in their stores. They
want to sell everything
possible stuff in their product
so customer never feel the
need of going to other store.
Price Aldi do not use a single
pricing policy, they have
different pricing policy for
different products. Some of
their most sold products are
sold by this organisation by
using marketing penetration
strategy. They are also using
competitive pricing,
psychological pricing and loss
leader pricing (Lipsman and
et .al., 2012).
Tesco has a clear pricing
strategy i.e. cost leadership
pricing. They sell their
products at lowest price and
also provide impressive quality
of goods.
Place This company has adopted a
completely new strategy of
Although Tesco is present in
less number of countries
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covering more number of
places for their business. They
are continuously opening new
stores in UK and at almost
every place. According to a
calculation, Aldi is opening
one store in every week.
compare to Aldi but in UK,
they have various type of
stores in different places like
Tesco Superstore, Tesco
Express, Tesco Metro etc.
Promotion Aldi do not believe in
promoting their brand and
products. They consider it as a
wastage of money. They have
a cost saving strategy where
they save money and spend it
on proving goods at
competitive price to customers
(LEHTINEN and MÄKINEN,
2012).
Tesco has an aggressive
promotion scheme but it is
focused only on single thing
i.e. goods at lowest price. They
do not spend money on any
other kind of promotional
activity.
People Aldi is known for providing
less customer satisfaction
because they have very limited
employees in the store and on
the floor. This company have a
strategy that they put all the
commodities in right place so
they think that they do not
need much employees for
assisting customers at the time
of buying goods.
Around 500000 people are
working in this organisation
and HR team of Aldi have a
very careful job policy. They
do not hire a candidate for a
particular position until they
feel that this person will
perform better than other for
the enterprise.
Process Aldi understand that process
play key role in earning
Tesco follow a process where
they do not want to divert their
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impressive results. They have
developed a process in their
stores where customer can
easily find desired product in
very less time period.
attention and keep their focus
on attaining more market
share. All of their procedures
and system concentrate on
accessibility and increasing
capacity of production and
supply level (Kennedy and
Parsons, 2014).
Physical evidence Thousands of stores, logo of
company are few key physical
evidence for the existence of
company. Aldi has registered
as different name in global
retail industry and millions of
regular customer are their
physical evidence
Whenever people talk about
lowest price than one name
which come in their mind is
Tesco. This company is still
holding top position in retail
sector of UK and their sound
presence in this nation is clear
proof of their existence.
TASK 3
P4 Marketing plan of Aldi'
Executive summary – Aldi has a clear mission i.e. they want to keep their business simple,
reliable and responsible. Their vision is to focus on their values in everyday business. This
marketing plan is being made for moving forward towards the mission and vision of the
organisation. Aldi want to become number one organisation in the UK market and for this they
have to increase their number of offerings in the stores. This marketing is plan is for organic food
which this company is going to offer in their outlets so they can attain their set objectives.
Marketing objectives
 To increase market share of company by 5% in 1 year.
 To enhance number of footfall in the store by 10% in 1 year.
STP
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The new organic products which company is going to sell in their stores will basically
help company is increasing their total market share with making their business model more
complicated (Hsu, 2011).
Segmentation – New products will be sold in food segment. This is one segment where
company can attain huge growth and selling organic products will help company in becoming
kind of this segment across UK.
Target – Main target of company for these products is young generation. Youth is now
getting serious about their health because they know that if they will eat healthy and pure things
than they will remain fit. If a person is not physically well then he/she cannot attain any success
in their life.
Positioning – This product will be sold at low price and company will try to convince
buyers that most of the organic food items are expensive so people do not like to buy them but
this one is not expensive and they can buy very good quality at low price. This will motivate
people to try new things (Hauer, 2011).
Competitive analyses
Porter's five force model application of Aldi
Competitive rivalry – Aldi has many competitor, not only in UK but in whole part of this
world. Tesco, Sainsbury, are their main competitors but this list is not limited. Their are many
other players in UK retail industry who are now selling organic foods and other products which
Aldi is planning to sell. This means that competitive rivalry of this firm is high.
Threat of new entry – Entering in retail sector need big investment. Range of this threat
can be considered as medium because there are many international firms who are planning to
enter in UK retail market as it is stable. Their are few local organisations who are also getting
strong day by day and they are ready to enter in big league where Aldi is going to launch their
organic food items (Desselle, Zgarrick and Alston, 2016).
Bargaining power of buyers – Customer have high bargaining powering because they
have many options and they can buy organic food from different stores if they have any issue
with Aldi. This company is not in a situation of monopoly in organic food segment which means
that their bargaining capacity is weak. .
Bargaining power of suppliers – Supplier bargaining power is low because Aldi have
many suppliers who will get ready to pay better quality at low price to this company. Number of
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organic food suppliers is continuously increasing so this is not a big problem for company
(Desai, 2013).
Threat of substitution – Aldi is not selling something very unique in their stores. The
commodities which is available in their stores can be found in other giant retail chains also.
Organic food is already available in many retail stores so and this means that chances of
substitution of their new product is high.
SWOT
Strengths
 This organise has a image that they sell best quality of goods at affordable rate. This
image which assist company in success of new organic products. Operational cost of company is very low compared to their rivals and they have sound
global presence (Batt, 2013).
Weaknesses
 Aldi is not too strong compared to other brands and this is going to harm sale of their
organic foot stuff. They have faced the allegation of selling low quality goods in the name of high quality
products. These allegation will create problem for company at the time of executing their
plan.
Opportunities
 Organic food section is growing rapidly so if Aldi with implement their plan in right
manner then they can easily grab signifiant market share of this section. If Aldi successfully start selling their products in this country then they will get
financially strong and they can expand their business in high growth market like Asia.
Threats
 Organic food seller are already present in UK market and they have already capture huge
market share. New products which Aldi is going to launch may not get public attention if
company will promote them (Al-Ekam and et .al., 2012).
 Few establish brand of organic food can create problem in success of private brand which
Aldi will sell in their outlets.
Recommendation
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It is recommended that company should quarterly check their performance and
concentrate on monitoring and controlling procedure because it is essential for successful
execution of complete plan which Aldi will try to implement. If manager of company feel that
sometime wrong with their marketing strategy then they should address the problem at the point
of its generation.
CONCLUSION
From the above report, it can be concluded that every company have marketing division
which provide different assistance to various division. This department is responsible for growth
of business and they also perform some other activities which improve image of company.
Marketing mix is used for analysing different aspects and strategies of the organisation and it
shows clear different when two companies are compared on its basis. Marketing plan is required
before launching of product or a new service, its implementation is equally important like of its
formation.
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Online
Marketing Essentials. 2017. [Online]. Available through
<https://www.entrepreneur.com/article/286545>.
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