Impact of Marketing Strategies on Business Performance

The provided content consists of academic articles and books related to marketing from various authors and journals. The topics include brand extensions, marketing strategy, competitive positioning, customer behavior, sustainable supply chains, and emerging markets. The sources also explore the role of social media in marketing, the importance of considering customers' psychological needs, and the impact of product rents on market differentiation.

Marketing Principles
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
1.1 Various elements of marketing process.................................................................................3
1.2 Evaluating the costs and benefits of marketing orientation in context of AVON.................4
Task 2...............................................................................................................................................4
2.1 Identifying various micro and macro environmental factors.................................................4
2.2 Segmentation criteria for AVON’s products.........................................................................5
2.3 Appropriate targeting strategy to boost the sales of Avon....................................................6
2.4 How buyer behavior is affected in different market situations..............................................6
2.5 Suggest marketing positioning of Avon and methods employed for repositioning the
product.........................................................................................................................................7
TASK 3............................................................................................................................................7
3.1 Developing products to sustain competitive advantage.........................................................7
3.2 Organizing distribution to achieve high level of customer convenience at AVON..............8
3.3 Pricing strategies used by Avon’s to reflect objective and market conditions......................8
3.4 Way in which promotional activity is integrated into AVON’s marketing objectives..........9
3.5 Additional elements of the marketing mix of AVON...........................................................9
TASK 4............................................................................................................................................9
4.1 Plan marketing mixes for two different segments.................................................................9
4.2 Differences in marketing products and services to business rather than consumers...........10
4.3 Difference between international and domestic marketing in Avon’s case.........................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Marketing principles are the combination of several tools, techniques, standards,
processes and rules that are necessary to be adopted by the management of company while
promoting its products and services in the market (Gregory and et.al., 2005). In the present era,
marketing is an essential function of every organization which helps in attracting more number
of customers and enhancing the brand image of business in front of people. While performing
marketing activities, various principles such as segmentation, targeting, positioning as well as
several promotional tools are necessary to be considered. In this aspect, the present report is
based on the case study of AVON which is one of the leading international beauty company that
focuses in rendering various cosmetic products to its women customers. It has various range of
products such as make up, skin care, bath and body, hair care, AVON wellness, fragrance and
outdoor protection. In order to ensure the image of these products in the market, management of
the company focuses on marketing on the regular basis. Due to this, the report will focus on
defining various elements that are needed to be considered by AVON while conducting its
marketing process.
TASK 1
1.1 Various elements of marketing process
Marketing is the process of promoting the goods and services of company in front of
various people so that large number of customer can be attracted. Marketing plays a vital role in
the growth and development of company as by this, business entity will be able to enhance its
customer base as well as its brand image in the market (Hartline and Ferrell, 2010). As level of
competition is so high in the cosmetic industry so management of AVON needs to focus to raise
the level of its marketing practices. For that, they need to involve the following elements in its
marketing process which are as follows:
 Market research: Before introducing any new product, market research is must by
which needs of customers and market trends can be identified in a better way. Now days,
requirements of consumers change frequently so market research on the regular basis is
necessary for company.
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 Strategy: After doing market research, AVON needs to set an appropriate strategy as
with the help of this, they can get success in performing marketing process effectively
(Herrera, 2007).
 Planning: By considering planning, goals and objectives can be determined and achieved
in a better way so that AVON can attract more number of customers towards business as
it is the main objective of marketing process.
1.2 Evaluating the costs and benefits of marketing orientation in context of AVON
In marketing orientation, products and services are developed on the basis of customer’s
needs as well as requirements along with involving product functionality and production
effectiveness (Lancaster and Massingham, 2010). In context of AVON, various costs and
benefits of marketing orientation are as follows:
Benefits of marketing orientation: By focusing on this approach, organization can focus on
understanding the needs of customers and accordingly, they can develop products as well as
services. This method leads to increase the number of customers which in turn enhances the
profitability of company (Kotler, 2009). By using this, product efficiency can be improved as it
focuses on taking feedback form customers on the regular basis.
Costs of marketing orientation: Intense market research is directly associated with marketing
orientation that raises the cost of company to a great extent. Along with this, focusing more on
market research can distract AVON to perform its other business activities in an effectual
manner.
TASK 2
2.1 Identifying various micro and macro environmental factors
In order to run business in a smooth manner, AVON needs to determine various micro
and macro environmental factors that put its positive and negative impacts on several business
operations.
Micro factors
In case of AVON, micro factors are related to various stakeholders of company who are
as follows:
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 Customers: Here, women are the customers of company who mainly prefer to purchase
products of high quality on the reasonable price. Therefore, it is the responsibility of
company to focus on developing high quality cosmetics products so that more customer
can be attracted.
 Government: As per the government rules, business entity needs to provide correct
information to their customers through advertisement (Madiechie, 2009). By following
government regulations properly, AVON will be able to run its business in an ethical
manner which is fruitful for the reputation of business.
 Employees: Without employees, company can’t focus on performing its business
practices. Further, there must have availability of an expert marketing team so that
objectives can be attained effectively.
Macro factors Political factors: Government policies are necessary to be considered by AVON while
performing its business practices. As it is an international company so regulations made
by the government of different country affect its operations to a great extent. Economic factor: GDP and economic condition of different countries put its huge impact
on the purchasing powers of buyers. Availability of high GDP increases the income level
of people which they can spend on company’s products.
 Legal factor: It includes several laws of government that are related to anti-
discrimination, employment, health and safety etc. These laws are necessary to be
considered by the management of company (Rosenbloom and Dimitrova, 2011).
 Social factor: As per the factor, needs and preferences of customers are needed to be
determined before developing product. Further, it involves factors such as lifestyle,
income and attitude of customers.
 Technological factors: It is necessary for AVON to adopt latest technology while
producing products so that high quality can be maintained effectively.
 Environmental factors: According to this factor, focus on environment safety is must for
business entity by which it can enhance the level of reputation.
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2.2 Segmentation criteria for AVON’s products
Segmentation is one of the essential strategies of marketing that is used to segregate a
large homogenous market into various small segments. Mainly, four types of criteria are used in
segmentation that are geographic, demographic, behavioral and psychographic. In geographic
segmentation, market is divided on the basis of regions, countries, postal codes and states. As per
the demographic segmentation, market is segregated as per the factors such as age, income,
education, gender and occupation. Further, behavioral segmentation is used to divide market on
the basis of usage rate, attitude, loyalty status and responses (Aaker, 2009). At last,
psychographic is focused on the factors such as interests, opinions and lifestyle of customers.
In context of AVON, gender factor of demographic segmentation is used as main
customers of company are women. For attracting them, business needs to focus on rendering
quality servicers in an affordable price.
2.3 Appropriate targeting strategy to boost the sales of Avon
Targeting strategy is the most important aspect of the company as this helps in increasing
the sales of the organization. Avon is known for its makeup products and it has many products
in this segment which is delivers to its customers. But the targeting strategy which it can use is
different strategy in which the products like foundation, lipstick and the other entire make up
products will be organic (Fitter, 2001). The AVON Company can focus on the product attributes.
No company has focused on this segment so it will be different from that of the competitor’s
products. Other aspects which can be targeted can be the niche market. The lipsticks, foundation
which are proposed by the organization will be organic so they will be costly also. By taking into
consideration this aspect niche market is targeting as there are very less consumer who will use
this costly product. Even at the initial stage the company can use micro marketing targeting
strategy in which they will sell their product to their local market and Avon will sell the products
individually to the customers. But the users which will be targeted will be their regular customers
like the big brands which use Avon cosmetics (Graham, 2008).
2.4 How buyer behavior is affected in different market situations
The buying decisions of the buyers are affected by the changing conditions as well as the
marketing activities which are carried out by the organization. In case of cosmetics the buyers
demand changes; like in case of the wedding session the consumer the buys the Avon cosmetics
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even it is expensive because they are need of it. On the other hand, when the market is low they
will buy the cosmetics only when the company has given offer on the products. The demographic
factor also affects the buyer’s decisions (Jarvis, MacKenzie and Podsakoff, 2003). In the cities
which are more developed then the individual uses more make up so the sales of the company
are high. But there are many small towns in which the consumption is less so the buyer’s
behaviors are different in that case. Lifestyle of the individual also affects the decisions of
purchasing the cosmetics. If the area in which they are living demands this kind of things then
they also make the habit of using the product. Another factor which affects the buying decision is
the comparison between two females. In this case they buy the Avon cosmetics. Cultural,
society, environment and perception of the individual greatly influence buyer decision (Burgess,
and Steenkamp, 2013).
2.5 Suggest marketing positioning of Avon and methods employed for repositioning the product
Positioning has become an important for increasing the sales and building the brand
image of the company. Because of many competitors the Avon has to position effectively so that
customer can buy the product. It is basically a tool for differentiating its product over the
competitors as this helps in increasing the market share of the company. The improved technique
can be positioning to customer value or the benefits. Avon cosmetics should position it on the
basis of product attributes which are providing to their customers. They are using herbal
cosmetics which will not harm the skin and there will be no side effect from them. So the
product attribute should be focused. By using product as the marketing mix they will stress on
the content and the specialty which the makeup product is having (Brassington and Pettitt, 2005).
On the other hand, in case of repositioning the Avon Company can reposition its brand on
the basis of the price as they can quote the price of the makeup product high. In this, the niche
market will still remain the segment and the product will have the same value even the target
customer will not be changed. Another repositioning method can be through promotion. Creative
advertisement should be designed and in this celebrity can be made the brand ambassador. This
will help the Avon Company to become different from that of competitors (Challagalla, Murtha,
and Jaworski, 2014).
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TASK 3
3.1 Developing products to sustain competitive advantage
In AVON, products are developed in such a way that company can sustain competitive
advantage over others. For this purpose, organization put a huge emphasis on research and
development for the products that are developed for the target segment. AVON assesses the
competitor’s strategies and products that they are offering so that it would get aware with the
features and benefits of their products (Huan and et.al., 2008). Making research about the market
in which AVON is going to launch its developed product plays a significant role in its success as
in order to make the product successful, it is important for AVON to provide some
differentiation and innovation its product. Thus, it needs to develop the product in such a way
that it will have those characteristics which no other competitor firm in the UK market is
providing (Leonidou and et.al., 2010). Therefore, it can be said that with the help of proper
research and development of new products, a competitive edge over other firms can be gained
that will increase the sustainability and survival of organization in the long run.
3.2 Organizing distribution to achieve high level of customer convenience at AVON
In the present scenario of UK market, management of intermediaries, physical
distribution of products and logistics has become crucial for today’s business. Thus, for AVON,
in order to properly organize distribution to attain high level of customer convenience, following
factors have to be taken with due consideration:
Franchising – In order to organize the distribution of products of AVON in an effective
manner, company can adopt the method of franchising through which it make the product
available in those markets also where it has not yet entered (Ferdous and Hossain, 2011).
Physical distribution – AVON needs to highly focus on its physical distribution so as to
retain the customers of local market. If products of company will be available at all stores
anytime, then it would prove to be beneficial for customers to purchase it whenever they need.
Customer convenience and availability – For having sustainability in business, AVON is
required to provide customer convenience by making the products available at all stores as well
as online so that people can purchase it anytime without having the issue of unavailability of
products (Nwokah, 2009). This will increase the sale of organization and thus, the profits would
also get enhanced.
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3.3 Pricing strategies used by Avon’s to reflect objective and market conditions
Customers have been considered as major factor according to which Avon determine its
pricing strategies. Being crucial element of marketing mix, prices are set according to Avon’s
market objectives and market conditions depending on if they are doing business domestic and
internationally. Following points are considered while determining strategies and are stated as
follows:
 Pricing strategies are applied according to place where customers live and as per factors
associated with them (Jarvis, MacKenzie and Podsakoff, 2003). For instance, price
skimming is applicable where Avon’s costs are decreased in order to maximise the sales
of makeup products at the market place.
 Psychological aspects are considered as customers and their mind set are assessed.
3.4 Way in which promotional activity is integrated into AVON’s marketing objectives
As marketing objectives of AVON’s Cosmetics is to grab the new market segments and
earn higher profits, it is important for the organization to give due emphasis on its promotional
activities (Evans, 2010). For this purpose, company must focus on its branding in such a way that
the benefits of product will be shown. Also, it can improve its online and internet marketing as it
will provide convenience to customers that will result in increasing the customer base and thus,
the sales and profits (Ulph, 2011). Apart from that, maintaining public relations would also prove
to be highly advantageous as this increases the confidence and trust of customers in the market
that would help AVON in retaining them in the long run.
3.5 Additional elements of the marketing mix of AVON
The additional elements of marketing mix are explained as below:
People – For AVON, it is important to give their customers the highest privilege as they
are the one who can make or destroy the firm by hampering their profits (Bhasin, 2012).
Process – By effectually focusing on the process of manufacturing cosmetics, AVON can
make its operations run in a smooth manner that will help in gaining the expected productivity
and educed chances of errors (Faisal, 2010).
Physical environment – Apart from all elements of marketing mix, physical environment
is the one on which firms generally do not give high emphasis. However, ignoring this element
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may lead AVON to bear losses. It includes right location, proper infrastructure, attractive interior
of the firm, etc.
TASK 4
4.1 Plan marketing mixes for two different segments
Marketing mix for first segment of young office going women between age group of 25 to 40
years
Product For this segment, bright and colourful shades of Avon make up will be
available depending on different occasions.
Price Penetration pricing strategy which is based on psychological pricing will be
adopted (Graham, 2008).
Place- Available at malls and shops located near office and institutions.
Promotions Social media will be best tool for promotion.
 Marketing mix for second segment of old women above 60 years
Product Light colour and herbal products which will not harm skin.
Price Easily affordable and discounting pricing will be applicable to grab customer
base.
Place- Online delivery and door to door service will be useful by keeping old age
factor in mind.
Promotions Use of radio, newspaper, magazines and television will be effective.
4.2 Differences in marketing products and services to business rather than consumers
There are several differences in marketing products and services to consumers rather than
o businesses which have been discussed with respect to Avon as follows:
Business to business (B to B) Business to consumer (B to C)
For marketing Avon’s make up products, B to
B marketing enables the direct meeting
whereby retailers at malls and shops will be
targeted.
In contrast to this, B to C marketing, Avon
will focus directly on consumers without any
interference of retailers or wholesalers.
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Chain of retailers as per B to B will be longer
(Brassington and Pettitt, 2005).
Avon will communicate directly with the
consumers thereby chain will be shorter.
Avon will focus majorly on products through
B to B.
Customers will be at major focus.
Effective channels of distributors will be
beneficial.
In contrast to this, B to C marketing will
involve longer distribution channels.
4.3 Difference between international and domestic marketing in Avon’s case
Comparison has been shown in the form of table given below:
Basis Domestic marketing International marketing
Globalization Issues arise with respect to selling as
the platform to carry out business is
limited (Burgess and Steenkamp,
2013).
The mode of conducting business is
more challenging as is made on wider
platform by managing working of
different nations.
Culturally
differences
On local basis, Avon will easily
promote due to same less target and
segment issue.
At global level, providing make up on
the basis of choice of customers which
vary to great extent may prove to be
difficult.
Benefits and risk Avon will face fewer risks and
benefits as arena will be local thereby
less problems may get encounter.
Broader risks at foreign market prevail
due to stiff competition.
International
marketing mix
strategies
It is easy to access those services as
every competitive firm shares familiar
marketing strategies.
For Avon, this will be highly
challenging to compete with the
international competitor’s market
players and their strategies (Challagalla,
Murtha and Jaworski, 2014).
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CONCLUSION
From this report it can be concluded that it is very significant for the Avon Company to
position its product according to the attributes of the products. There are many competitors so it
is important for the organization to evaluate the market process so the best strategy can be made
by the company. Even it can also be inferred that there is huge difference between marketing in
domestic as well s in the international market. But in case of Avon cosmetics it is beneficial for
the organization to market its product internationally as they can earn huge profit from them.
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