This report discusses about Sainsbury which is a UK based multinational organisation. It includes discussion marketing and its activities. It also consists understanding of different components of marketing.
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Marketing Process and Planning at Sainsbury’s
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Contents Contents...........................................................................................................................................2 INTRODUCTION...........................................................................................................................1 MAIN BODY..................................................................................................................................1 TASK 1............................................................................................................................................1 P1. Explanation of concept of marketing and marketing operation including different areas and role of marketing..........................................................................................................................1 P2. Explanation of ways in which marketing functions in wider organisation context..............2 M1. Analysation of role of marketing in context of marketing environment..............................3 M2. Analysation of significance of interrelationship between marketing and other functional unit of organisation......................................................................................................................3 D1 Critical analysation of external and internal environment in which marketing operate........4 TASK 2............................................................................................................................................4 P3. Comparison of ways in which different organisation can apply marketing mix to the process of marketing for attainment of business objectives........................................................4 M3 Review strategies and tactical approaches applied by organisations to demonstrate how business objectives can be achieved successfully.......................................................................6 D2. Evaluation of strategies to marketing mix in attain overall business...................................7 P4. Development of marketing plan that consist key elements of marketing planning for organisation to attain marketing objectives.................................................................................7 M4.Production of detailed marketing plan that integrates extended marketing mix for attainment of marketing objectives............................................................................................11 D3. Production of strategic marketing plan for organisation that measure attainment of marketing objectives..................................................................................................................12 P5. Produce a media plan that includes recommendations and rationale for selected media activities that meet budgetary requirements and objectives of a marketing campaign brief.....12 M5. Devise an integrated multimedia plan, selecting appropriate digital, offline and social media channels for communication...........................................................................................13 D4. Provide a justified integrated multimedia plan based on quantitative and qualitative criteria........................................................................................................................................14 CONCLUSION..............................................................................................................................15
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INTRODUCTION Marketing refers to a process for exploration, delivering and creating values in order to meet needs of target market in context of goods and service. It is one of important activity which is increasingly used by firm in order to success (Abdullaev and Nabieva, 2021). Success of an organisation is depended on marketing efforts of firm as it allows to develop values of products in minds of consumer. This project report discusses about Sainsbury which is a UK based multinational organisation. This organisation has its supermarket chain in UK in around 1428 locations. This organisation is planning to increase its revenue and stores in upcoming years. This project report includes discussion marketing and its activities. It also consists understanding of different components of marketing. MAIN BODY TASK 1 P1. Explanation of concept of marketing and marketing operation including different areas and role of marketing Marketing can be described as process for exploration, delivering and creating values in order to meet needs of target market in context of goods and service. It consists identification of target audience, selection of basic attributes that focus on advertising, operation of advertising campaign (Barotova, 2018). It can be described as action taken by a company in order to attract audience to products of company by sharing of message of high quality. Marketing operation can be described as process of getting interest of people in product and service of company. It can be based on market research, understanding of interest of customers, analysis. It is based on different aspects of business including sales, advertising, distribution method, product development and other things. Marketing operation of a firm is completely depended on things on which consumer spend time. Value of marketing has been more increased in the 21stcentury as it helps business for purpose of developing distinct image of company which allow managers of Sainsbury to compete in the marketplace. It is important for business as on basis of it, a business can create awareness in minds of customers. It allows them for purpose of increasing brand awareness in the marketplace and also helps business to understand the requirement of customers. It also implements these requirement of consumers in their offering. 1
Role of marketing: Marketing plays important role in business of Sainsbury that allow them to improve profitability and sales of company. It allows them to create influence over consumers for products and service of company (Bran-Piedrahita, Valencia-Arias and Palacios-Moya, 2020). It is a process that allow a person to plan and execute conception, promotion goods and service, creating exchange, distribution of products and service in order to attain goals and objectives of firm. Some of role of marketing in Sainsbury is mentioned below: Identify and Meet needs and wants of consumer:Marketing is one of activity which helps business to identify needs of consumer, allow them to adopt various marketing strategies. It also creates influence over wants of consumer and making efforts in order to produce products that best suited to their needs and wants. In order to understand needs and wants of consumer, marketing activity helps business to carry out various research. Allow survival, growth and reputation of organisation:Marketing is an essential activity for purpose of survival of business. It allows business to attract number of customers towards their business that allow them to attain goals and objectives of business (Fu, Phillips and Phillips, 2018). It is essential for business in order to satisfy needs of business that allow them to fulfil expectation of customers. It also provides growth to business and also build strong reputation in minds of customers. Marketing research:Marketing also helps business to carry out marketing research as it allows them to understand needs and requirement of business. It also helps Sainsbury to understand trends of market and allow them to adopt it in business. On basis of it, business can understand problem faced by consumer and also helps them to make improvement in their products and service. Improve brand value:The marketing function is one of the important functions which play important role for purpose of improving brand value in minds of customers. On basis of it, business managers of Sainsbury are able to develop distinct positioning of business which allows them to improve the brand value of the company. Developing customer relationship:It is also one of the important components which allow business managers of Sainsbury to develop a good relationship with customers. It allows the company to interact with customers and also understand their needs and requirement. 2
P2. Explanation of ways in which marketing functions in wider organisation context Marketing department is one of important department in business that consist various operationinbusinessincludingpromotionofbusinessproducts,understandingneedsof consumer, attracting consumer. This function is interlinked with other function of business in different manner. Interrelation of different department in organisation with marketing department is mentioned below: Marketing and finance:Finance and marketing function are interlinked which helps business for attainment of goals and objectives. Finance function is one which allow business to access to variety of funds. There is different source of finance which allow business to access to funds like bank loan, angel investor, crowd funding and other source. This function helps business to allocate funds to business over different activities (George, 2021). It is also important for business to develop budget that allow business them to utilise funds in effective manner. Marketing can be described as function which helps to promote products and service in market in effective manner. In order to carry out promotion activities in market, business needs to access funds from finance. It also allows them to control cost over firm by carry out activities within marketing budget. Marketing and Human resource:Human resource is one of important department for an organisation.Itprovidesskilledandknowledgeableemployeestoorganisationwhoare committed with their work. It is important for business as without human resource, any operation in business is not possible. Marketing department also require human resource in order to carry out its operation. In order to have employees in organisation on timely basis, marketing department is depended on human resource department. Payment of these employees are also selected by human resource department. Marketing and production:Production department in one of department that is responsible for purpose of production of products and service. In order to carry out production activity, business needs to understand requirement of customers and for this, production department is depended on marketing department of company (Gunawardane, 2020). It allows them for purpose of understanding of problem faced by customers and also change in their needs. On basis of it, production department development products in business. In order to sale products produced by production department, this department is depended on marketing as marketing helps to increase demand of product in market and allow firm to sell maximum units. 3
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M1. Analysation of role of marketing in context of marketing environment Marketing is an activity that aims to deliver standalone values for consumers, prospects from content as well as long term goals by reflecting values of products, increasing sales and also strengthening loyalty of brand. It allows business to carry out research in market and also helps business to determine type of market and which type of tool suited to business for purpose of building a brand. It helps in promotion of business products, understanding needs of consumer, attracting consumer. It allows firm to carry out research in market and adopt changes in business according to change in environment. M2. Analysation of significance of interrelationship between marketing and other functional unit of organisation Function of this department in interlinked with other department of business as common goals of all department of business is same (Handoyo, Nurdyansyah and Haryanto, 2020). Due to this, focusondifferentdepartmentofbusinessisoneattainmentofgoalsandobjectivesof organisation in effective manner. This interlinked among different department is important as it allow business to allow goals and objectives of business. For instance, marketing function is depended on finance for access funds for carry out promotional activities. Finance function depend on marketing function to gather data of customers. Marketing department of huma resource function to hire skilled and talented employees. D1 Critical analysation of external and internal environment in which marketing operate Internal environment of firm which are present inside firm and firm has proper control over these factors. It allows firm to understand problem inside company and make timely solution in order to avoid serious impact over business. External environment helps business to understand change in demand, trends, technology in business and also business adopt these changes in order to updated that allow firm to increase profit. TASK 2 P3. Comparison of ways in which different organisation can apply marketing mix to the process of marketing for attainment of business objectives Sainsbury is one of learning retailing company in all over worlds that provide different retail supermarket services. Marketing mix can be defined as action as well as tactics which can be used by organisation for purpose of promotion of products and service in order to attract number 4
of customers (Matušínská and Stoklasa, 2019). It consists price, place, promotion, product and also extend its range by including people, process as well as physical evidence. Application of marketing mix in Sainsbury as well as Tesco is mentioned below: Marketing Mix SainsburyTesco ProductSainsburyisainternationalorganisation that offer variety of food products to its customers. They provide ready to eat meal, organic food products bakery products and other things (Opresnik, 2018). Instead of these, this organisation also providing home collectionproducts,kitchenproducts, furnishingandfinancialservicestoits customers. Moreover, it is also focusing on providinggoodqualityofproductsto customersinordertoimprovetheir satisfaction. It is also adopting innovation in organisation that will improve loyalty of customers for their brand. TESCO is one of organisation that offerrangeofproductstoits customers.Thisorganisation provides electronics, food products, stationery, clothing and other things. These products offered by business under their brand name like Tesco values, F&F, Tesco lotus and others. All these products offered by firm focusing on improving satisfaction of customers by improving quality of products and service. PricePricing strategy of Sainsbury is based on vale of money which allow firm to attract numbers of customers and also to retain theminfirm.Thisfirmisadopting competitive pricing policy in place of lower cost pricing policy (What is a marketing strategy? 2021). Tescoisadoptingcostleadership pricingstrategyinwhichfirmis focusing on reducing cost and also offer price at lower price that helps themtoincreasenumberof customers in business and also helps themforpurposeofproviding productswithoutcompromising quality of products. PlaceSainsbury has a large organisation as it has numberofsupermarketandconvenience stores in all over world that provide various Tesco is also a organisation adopt both online as well as offline mode forpurposeofbusiness.This 5
servicestocustomers.Thisorganisation also provides its products at online platform orthroughhomedeliveryinorderto increase reach of products (Thakur, Hale and AlSaleh, 2020). This organisation has around 13 distribution centres as well as 2 national distribution centres. organisation has around 7000 stores in all over world that is under name like Tesco express, Tesco Compact, Tesco extra and others. Tesco Direct is its online channel that is used by firm in order to increase reach of their products and service. PromotionItisoneoforganisationthatisusing various promotional strategies in order to gainattentionofcustomers.Itisusing advertisement,broadcastmedialike television, radios. It is also using digital marketing tools for purpose of promotion of itsproductsandservice.Thesesources include data base marketing, social media marketing,promotionalcampaignand others. Tescoisanorganisationthatisu using different medium for purpose ofpromotionofitsproducts includingnewspaper,televisionas well as other social media platform in order to create influence among customers.Although,itisoneof largestorganisationbtwtillitis spend more on traditional method of advertisements. PeoplePeoplearethosepeoplewhoare contributingforpurposeofsuccessof company.Therearearound180000 employeesworkingthisorganisationfor purpose of growth and success of company. These employees are committed with goals and objectives of company (Uğur, 2020). Tesco has around 420000 employees work in their organisation for growth ofcompany.Thisorganisationis also spending more on training and development of employees that will improveefficiencyofworkof employees. ProcessSainsburyisanorganisationthatis adopting convenient process for customers that make it easier for them to purchase products and service of company. In order to purchase products at online, customer just needs to click and they can collect products of firm. ProcessadoptedbyTescoisto improveperformanceofcompany and also for attainment of goals. This organisationhasdeveloped standardisedprocesswhichallow them to complete task online and also to provide timely delivery to 6
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clients. Physical evidence Sainsburyprovidephysicalevidenceof their service through their excellent service designs.Theyarealsoprovidingtrolly, shoppingbagsandbasketsinorderto providephysicalevidenceofshopping experience. Tesco is one of organisation that is providing physical evidence through theirphysicalstores,products, furniture,interiorsofstoresand other things. M3 Review strategies and tactical approaches applied by organisations to demonstrate how business objectives can be achieved successfully It is important for the Sainsbury's to develop effective and precise strategies which are helpful in achievement of set targets. The key goals and objectives of the company can be achieved with the help of following strategies: Strategic management- The strategic management is considered as key approach which is helpful in management of business. Strategic management of Sainsbury's will be helpful in development of a major planning framework which is important for its success. Taking assistance of strategic management will help the organisation to gain effective success at the marketplace. It will also help the organisation in dealing with uncertainties and risk associated with marketing operations. Information and technology-In the era of stiff competition between companies, it is essential for management of Sainsbury to take help and assistance of information and technology(Waguespack, 2018). The information and technology are two major tools which will help Sainsbury to perform all major operations in a quick and accurate manner. The Sainsbury will also use customer relationship management software to communicate with key and target customers. Skill development in employees-The skills and their development in employees of employees will play an important role in increasing business strength. Sainsbury's should developskillslikecommunication,decisionmaking,problemsolvingandcritical thinking in employees. This approach will help the company to develop performance in major employees and will also help in increasing their productivity. 7
D2. Evaluation of strategies to marketing mix in attain overall business There are different strategies to be adopted by firm on basis of marketing mix. As a firm can adopt innovation in their products that allow them to differentiate its products from competitors and also helps to gain attention of customers. Firm can also introduce new product that allow them to diversity products portfolio. TASK 3 P4. Development of marketing plan that consist key elements of marketing planning for organisation to attain marketing objectives Mission:Mission of Sainsbury to be first choice of consumers for food, delivery of products that are of good quality and also to be provide service to customers at competitive cost by working in faster and simpler manner (Yaghin, 2020). Corporate strategy:Corporate strategy of Sainsbury is to accept changes in order to accelerate cost saving which allow business to invest more on quality of food, innovation, choice and also over lower prices to customers. It is focusing on reducing complexity, transform cost- based products in order to provide support to a specific brand. Objectives:Sainsbury is aiming to provide good quality of products to its customers in order to maximise satisfaction of customers and also to retain them for long term (What is a strategic marketing plan, 2021). Clear Smart marketing objectives: To improve sales of business with 15% in next 3 months. To increase profit of firm with 10% in upcoming 5 months. To improve business service in order to attract 10% more customers in business. Marketing research: Sainsbury is a business that is aiming to provide food products to its customers. This business is investing more on marketing research in order to identify needs and wants of business. On basis of it, Sainsbury find out there is increasing demand of organic fruits in market and for this, business is offering organic fruit juice to its customers (Zaveri and Amin, 2019). These fruits juice is creating good impact over health of people and is packed in transparent plastic bottle which are recyclable. This design of bottle is attractive enough to gain attention of customers in 8
marketplace. In order to launch this product, firm is collecting information in market that allow them to develop various marketing strategies. Situation analysis SWOT analysis: StrengthWeakness Sainsburyisincludedintop4 supermarket of UK. It is getting rapid expansion in market. It is focusing on low-cost strategy that allow them to attract large customer base (Zhang and Xu, 2018). It is also offering retail and wholesale banking service to customers that allow them to diversity product portfolio. It is facing risk of brand switching of customers as there is lower switching cost in this industry. It is offering products at lower margins in order to attract more customers. There is increase in cost of Sainsbury to provide additional services. OpportunityThreat There is growth of supermarket in rural areasduetoincreasedemandof different types of products. It is also making efforts to adopt self- checkout machines it will allow them to reduce time taken for check out that will boost sales of company. Thereisincreasingcompetitionin market that create threat for business of Sainsbury. Globalisationisanotherthreatfor company due to which any company can expanditsoperationwhichalso increase marketing competition. Pandemicisalsocreatingthreatfor business due to which firm needs to follow all guideline and needs to ensure precautionintheirstores.Itwill increasecostofcompanyandalso reduce profitability. PESTEL analysis: Political FactorsEconomic Factors 9
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Government of UK has made changes in rules duetoBrexitandCovid-19pandemicthat make it difficult for business to operate in market as business also needs to made changes in their rules (Zhang, 2020). Due to pandemic situation, purchasing power of people is reduced. It also creates impact over sales of company as it does not allow customer for purpose of selling products and service. Social FactorsTechnological factors People of UK prefer to buy products from supermarket that allow Sainsbury to increase number of customers to business. Customerintodaystimealsoawareabout health that provide opportunity to company as they are following all guidelines in business. Sainsbury is adopting various technology in business in order to reduced cost of firm. It providesadvantagetofirmforpurposeof increasing marketing share of business. 5C analysis: Itisoneofanalysiswhichallowbusinesstoconsistvariouselementsinorganisation. Explanation of these elements in business are mentioned below: Company:In this element, focus of business is to identify sustainable competitive advantage. It provides brand equity to business by providing them economies of scale, development of technology. Sainsbury is adopting cost leadership strategy that allow firm to get cost advantage through economies of scale. Collaboration:Collaborators of business allow firm to improve ability of company to provide products and service. It allows Sainsbury to reach to customers at right time. Customers:Customer are important people who purchase products and service of company. Sainsbury has retained loyal customers through offering good quality of products to customers. Competitors:Competitors create impact over profitability of business and does not allow firm to increase marketing share. Sainsbury is adopting different competitive strategies that allow firm to overcome of competition. Climate:Environment of business also create impact to operation of Sainsbury. There are different factors present in environment that create impact over business and these factors including technological factors, cultural factors, social factors and other things. 10
Competitors analysis: It is one of analysis which allow business to identify different strategies of marketing, strength and weakness, marketing share, culture and pricing strategies. It allows business for purpose of analysation of competitors that allow them to identify opportunity and threat. There are different competitors of Sainsbury including Tesco, Aldi and other brand. In order to overcome of competition, business adoption differentiation strategy and cost leadership. STP analysis: SegmentationSainsburyissegmentingitscustomersonbasisofgeographicand demographic segmentation. TargetingSainsbury is targeting on basis of attractiveness of segment, marketing share and other factors. PositioningSainsbury has functional positioning that allow them business to solve problem of business. New product value proposition: Consumer profile Job to be done:Sainsbury is focusing on developing organisation fruit juice in market as demand of these products are high. Gains:It will create positive impact over health of people that provide them vitamins and minerals. Pains:Consumer is facing problem related to food products as they want products that create good impact over their health. Value proposition Products and service:Sainsbury is focusing on providing fruit juice of different flavour to customers that are based on organic fruits. Gain creators:it can be done by offering products on online delivery platform and also offering different discounts offers to customers (How to Develop a Successful Marketing Mix Strategy, 2020). Pain Reliever:Organic fruit products in market are of higher price that does not allow average income people to buy these products. 11
M4.Production of detailed marketing plan that integrates extended marketing mix for attainment of marketing objectives Marketing mix: It is one of term that consist detail of different term like product, price, promotion and place. It also consists extended P’s like process, physical evidence, people. Explanation of these detail in context of Sainsbury is mentioned below: ProductSainsbury is offering organic fruit juice to its customers which are full of protein, minerals and vitamins. PriceCompany is offering these products within affordable prices. PlaceSainsbury is providing these products to both online and offline platforms (What the Marketing Mix Is and Why It's Important, 2021). PromotionIN order to promote these products, company is using social media marketing. ProcessSainsbury is making efforts to provide these products to customers in convenient manner. Physical evidenceCompany is proving physical evidence through packaging of products. PeopleCompany has hired skilled and talented people in order to get success. D3. Production of strategic marketing plan for organisation that measure attainment of marketing objectives There are different strategies can be adopted by Sainsbury for purpose of including marketing share of firm.Organization uses various cost-leadership strategy which allow business to offer products to target customers at lower price. For purpose of promoting organizational products, Sainsbury uses online and offline marketing strategies that also helps business to reach large target customer base. 12
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TASK 4 P5. Produce a media plan that includes recommendations and rationale for selected media activities that meet budgetary requirements and objectives of a marketing campaign brief. The media plan is considered as key approach which will support Sainsbury's to develop effectiveness in marketing operations. Company can also achieve set targets and objectives with the help and support of media plan. Media plan for Sainsbury's company is mentioned below: Target the buyers-The targeting of buyers is the primary task in the business media plan. In this step Sainsbury's should focus on targeting major customers for the business in order to develop best promotion techniques for them. Defining SMART goals-The secondary stage in development of a media plan includes development of SMART goals. Goals and objectives of Sainsbury's should be SMART in order to achieve key and desired outcomes of a business. Select best media planning tools-While designing a media plan, it is important to select and focus on perfect media planning tools. It is also important for the company to focus on development of an approach which is selected for best media planning tools and techniques(Marketing strategy vs tactics – why the difference matters, 2021). 13
Analyse historical data-The key function of a business should be on development of appropriate approach in analysing historical data. The Sainsbury's company should analyse and focus on historical data in order to evaluate best practices to understand key demand and needs of customers. Choose media channel-Selection of the media channels is one of the major tasks of marketing management of Sainsbury's. The media channels like Television, Radio, social media and internet should be chosen by the company to perform advertisement of products. Action and implementation-This is the final stage in marketing media plan which includes development of appropriate actions to implement it. The marketing plan should be implemented with key strategic actions in order to ensure its success. Monitoring and supervisionofactionsshouldbedevelopedbyacompanyinordertoensure implementation of plan in a systematic and precise manner. There are different types of media are used by business for purpose of promotion of their products andservice. These media include advertisement, social media, web marketing and other tools. Explanations of these media in the context of Sainsbury are mentioned below: Social media marketing:It is one of digital marketing which is used by business managers of Sainsbury for purpose of promoting products. In this, business take helps from different social medial platforms like Facebook, Instagram, Snapchat, Twitter and others. Advertisement:It is another social media platform to be used by businesses for the purpose of promotion of products. It can be done with television, radio and newspaper. It is easier ways through which business can share information of their offering with different people. M5. Devise an integrated multimedia plan, selecting appropriate digital, offline and social media channels for communication. In the tough competitive era between many international and national companies it is essentialfor a businessto takeassistanceof integratedmultimediaplan. Theintegrated multimedia plan takes into consideration application of information and technology to perform key functions related to promotion and advertisement. The selection of appropriate offline, social mediaanddigitalchannelsofcommunicationisaneffectiveapproachwhichhelpsthe Sainsbury's to achieve quick and accurate results. Social media marketing is the new way of 14
promoting business practices in a precise manner. The Sainsbury's company can take into consideration promoting its product on famous social media websites like Facebook, Instagram and Twitter to reach maximum customers. In the offline selling, company can choose direct marketing which is helpful in performing publicity of products and services in a straight manner to target customers. The Sainsbury's company can also use internet as a major tool in the digital era to promote its products in a quick period of time. Company can also prefer to choose best techniques related to digital marketing like hiring professional and skills IT experts in order to achieve its marketing goals. The company should also take assistance of strategic actions and choices which are effective in order to develop focused approach. D4. Provide a justified integrated multimedia plan based on quantitative and qualitative criteria. The data analysis is one of the major and primary functions of marketing management of a company. It is essential for the company to develop precise approach in data management to evaluate best practices. The analysis of both qualitative data and quantitative data can help Sainsbury's in order to communicate with key customers. In order to analyse the quantitative and qualitative data company must prefer to perform effective marketing research and survey. Company can evaluate key and major ways which are important for data management in order to serve customers in a well-defined manner. The integrated multimedia plan based on qualitative and qualitative data will include a major strategy to develop focused approach in business development.Thesocialmediaandinternetrelatedchannelswhichareselectedbythe Sainsbury's should also focus on increasing potential of promotion by selecting best websites. The internet-based marketing operations are also facilitated by data management with the help of key tools and techniques. Sainsbury's should include focus on integrated multimedia plan with key emphasis on target customers to achieve overall development. The company can analyse quantitative data with the help of market research and then take necessary actions to resolve the issues. The qualitative data related to target customers will also help Sainsbury to evaluate key business practices which are required to develop a major approach in handling target customers. Business organisation should also take key actions which are reliable and flexible to support integrated multimedia plan on the basis of qualitative and quantitative data. The data and figures of all target customers should be collected by company with the help of marketing survey. Once after 15
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performing successful market research Sainsbury should take key actions and steps in order to implement the integrated multimedia plan. CONCLUSION From above mentioned project report, it can be concluded that marketing is one of important activity that contribute in an organisation in various manner. There are different rules played by this function in business. It allows to increase chances of success of business. Firm also using marketing mix that provide them complete understanding about its products and helps managers to develop different strategies. 16
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