Marketing Principles Assignment

This assignment requires a comprehensive literature review on the topic of marketing principles. Students need to analyze various sources, including books, journal articles, and online resources, to synthesize their understanding of key concepts in marketing. The provided bibliography includes relevant academic works by authors like Kotler, Hollensen, Jobber, and others, as well as online materials from reputable sources such as Avon Company website and Knowthis.com.

MARKETING
PRINCIPLES
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TABLE OF CONTENTS
INTRODUCTION .................................................................................................................3
TASK 1................................................................................................................................. 3
1.1.................................................................................................................................... 3
1.2.................................................................................................................................... 4
TASK 2 ................................................................................................................................ 4
2.1.................................................................................................................................... 4
2.2 ................................................................................................................................... 5
2.3 ................................................................................................................................... 5
2.4 ................................................................................................................................... 6
2.5.................................................................................................................................... 6
TASK 3 ................................................................................................................................ 7
3.1.................................................................................................................................... 7
3.2.................................................................................................................................... 8
3.3.................................................................................................................................... 8
3.4.................................................................................................................................... 9
3.5.................................................................................................................................... 9
TASK 4............................................................................................................................... 10
4.1.................................................................................................................................. 10
4.2.................................................................................................................................. 10
4.3.................................................................................................................................. 11
CONCLUSION ...................................................................................................................11
REFERENCES...................................................................................................................12
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INTRODUCTION
Marketing principles are defined as tools and techniques adopted by a firm for
improving its market share and positioning. These principles affect the overall selling
process and growth of the corporation. Present report is based on Avon which is a leading
global beauty and manufacture personal care products. It sells product in the range of
skincare, cosmetics, fragrance, and Avon make-up products (AVON the company for
women, 2016). Various marketing strategies that are used by the enterprise and their
effectiveness are mentioned in the report. In addition to this report describes about
techniques and strategies adopted by the business to gain success in domestic and global
market.
TASK 1
1.1
Avon is a leading cosmetic firm which provides quality products to its consumers at
a reasonable price. The major elements of marketing for Avon firm includes-
Production: Under production element, enterprise is required to consider demand
of the product in the market, requirement of consumers, possibility for introducing new
variety in the market and methods for making more attractive packaging of its products
(AVON the company for women, 2016).
Price: - This element plays a significant role in determining cost of the product. For
deciding the price, company needs to inspect price of the competitor’s goods. It is
advantageous for the firm to give discounts and attractive schemes on the product for
attracting large consumer base (Jobber and Ellis-Chadwick, 2012).
Place: - It is essential for the Avon Corporation to identify its consumer base for
selling its manufactured item in a large volume. Market areas should be identified after
proper analysis and distribution centres of the firm should be located in target market
areas for effective utilization of its physical resources (Vincze, 2015).
Promotion: - Avon Company develops its promotional strategies in a effective way
to attract purchasers. Initial promotional strategy for the firm was to give a free perfume
bottle with its products. It proved beneficial for the company and aids in expanding the
market. Company trains its sales representatives in productive mode that assist the firm in
increasing its selling products by using direct marketing channels (Armstrong and et. al.,
2014).
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1.2
Avon firm offers variety of products in the market and for launching a new item, the
company is required to analyse the benefits and cost associated with the products. It is
essential that consumers should be made aware of the new manufactured good that the
Avon firm is going to launch in the market. To achieve this objective, the organization
needs to advertise its products by using various platform including social media, television
commercials, news-paper advertisements and personnel selling (Nicholson and Oliphant,
2014).
It requires huge financial budget allocation from the enterprise which is considered
as the investment cost of the business. The company needs to give training to its sales
representatives for selling the commodity in a better and in an appropriate manner to its
buyers. All the above activities require finance for their execution. The outcomes achieved
by this method include high profit and growth, increase in market share and creation of
positive brand image of the Avon firm.
TASK 2
2.1
Avon Company has launched variety of products in the range of skincare products,
fragrance and beauty cosmetic products (AVON the company for women. 2016). Various
micro and macro environmental factors affect marketing decisions of the business. The
macro environmental factors includes social factors which affects marketing strategies of
as buyers from different geographical and ethnic-al background prefer to purchase goods
according to their specific needs and preferences. People who are fashion conscious will
tends to purchase good quality beauty products and it will work as advantageous for the
Avon firm to manufacture its product according to the requirement of its buyers (Heidt and
Quazi, 2013).
Technological factors also impacts the decisions of the firm as new innovations in
technology provide improved methods for manufacturing the products (Converse, 2013).
Further, the competitor can take advantage of this factor for producing good quality
products at the reasonable price. It forces the Avon Corporation to adopt new technology
to maintain its market share and position. Micro environmental factors that affect the
business decision includes employees of the corporation, workers in the manufacturing
department and its 6 million active sales representatives that work in a mutual way for
enhancing growth and profit of the business (Steinberg and Greene, 2011). The
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competitors for the firm that struggle to acquire market position of the Avon firm include
Lakme, L'oreal and Maybelline which creates threat for the company. Availability of
different product range in the market compels the Avon to enhance quality of its
manufactured goods and it can be achieved by efforts put by research and development
department of the corporation.
2.2
Market segmentation is a very effective concept which can be used by Avon
enterprise for increasing its growth and revenue by directing its business strategies on a
particular class of buyers. Market segmentation is defined as division of consumer into
distinctive groups for targeting the marketing effort of the company for maximizing its sales
(Sheth and Sisodia, 2015). The distinctive group are known as the market segments. Avon
firm produces commodities in the range of skincare, fragrance and cosmetics products and
the consumers of the company are regular cosmetic buyers, housewives, and college
going girls.
Market segment for the enterprise can be determined by considering geographical
segmentation in which buyers can be divided on the basis of countries, regions and
districts for making effective marketing strategies for the corporation (Kotler and et.al.,
2015). Geographical segmentations are visible and easy to identify. Needs of the
consumers differ from one geographical location to another and Avon enterprise can
identify requirement of buyers in a particular region for manufacturing and selling its
product according to the need of people in that particular place (Identify Market Segments.
2014).
2.3
Avon is a leading global cosmetic brand which offers personal care products and
services for its consumers (AVON the company for women, 2016). Avon Color is a highly
appreciated product of the Avon Company and it can use targeting strategies for
increasing sales of this brand. The strategies provide a effective framework for the
enterprise to increase its sales and revenues by adopting appropriate tools and techniques
(Henley, Raffin and Caemmerer, 2011). Undifferentiated target marketing will assist the
firm to capture the market for Avon color product without differentiating or creating a
particular market segment. The whole market in which all the buyers are given equal
probability will prove a productive medium for selling large volume of commodity after
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identifying the need of the consumers. Company should design its product after finding out
the requirements of the buyers in the market and manufacture its goods according to their
needs (Barrett and Weinstein, 2015). It will aid the Avon firm to meet needs of large
number of consumers and using this strategy will assist the company to sell its
commodities to a wide consumer base.
Concentrated market targeting is also a functional method for targeting a few
consumer segments in the market for selling the Avon color product. It will assist the firm
to gain a strong position in the chosen market segment by concentrating its sales channel,
advertisement strategies and brand awareness programmes for the target consumer
segment. Differentiated marketing strategy is also a targeting strategy which can be used
for enhancing sales of the Avon color product. In this method, different kinds of advertising
methods can be used for appealing different type of purchasers (Chatzipanagiotou, 2010).
It will aid in reaching large consumer base by adopting various marketing styles.
2.4
Buyer's behaviour affects the Avon organization's marketing activities and its
business decisions. Buying reaction of consumers in different situation affect the overall
functional process of the corporation (Garoufallou and et.al., 2013). It compels the
business to make its marketing strategies according to the requirements of purchaser. It
assists in achieving high revenue for Avon cosmetic products from a wide consumer base.
Social factors which affect the buying behaviour include values and beliefs of a
particular society. Purchasing activity of consumers in a particular social class gets
affected from traditions and culture of the place. Company should direct its marketing
strategies for attracting buyers according to the social values existing in that particular
geographical region. Personal factors include lifestyle, age group, occupation, financial
status and self beliefs of the buyer. Psychological factors that affect the buying behaviour
of purchaser for Avon product include values, attitudes and beliefs of the individual.
Consumer possess specific values and perception for a particular product and this values
aids in developing brand image and affects the overall purchasing decision of the
customer. Environmental influences come from family, friends and co workers whose
suggestion and views aid in determining the purchasing decision of the consumer.
2.5
Avon cosmetics are a leading personnel care brand which serves large consumer
base in the market. Company can use new and improved marketing positions and
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methods for repositioning and it will assist the corporation in enhancing its sales and
business. Market positioning is defined as the target market's perception about a particular
product (Hartley and Claycomb, 2013). Consumer's understanding and knowledge about
Avon cosmetics products develops market positioning for the firm. Developing effective
strategies will assist the Avon brand to occupy a distinct position in the perception of the
buyers. Value proposition is a business statement that defines about the reason for why a
consumer purchases any particular product. Consumers of Avon buy its commodity due to
superior quality and lower price. It is a promise done by Avon firm about the delivery of
quality to its consumers.
Position statement is an expression which gives information about the Avon
cosmetics products and it includes- target market of Avon cosmetic product, values and
services provided by the product and buyers perceptions about the Avon cosmetic
products (AVON the company for women, 2016). The enterprise can reposition its brand
by changing consumer's perception for the Avon cosmetic item. Advertisement can play a
significant role in achieving this objective and company can sell its products by inheriting
on its quality feature. Quality will aid in building powerful perception in the minds of the
purchaser and higher consumer satisfaction and large sales can be achieved by using this
strategy (Dziri, 2013.). Research and development department of the firm should make its
effort for enhancing quality of the manufactured items which can be sold to purchaser at a
reasonable price.
TASK 3
3.1
Avon firm uses method of employing sales representatives for selling its
manufactured items directly to the consumers (AVON the company for women, 2016).
Corporation can adopt sustainable competitive advantage by adopting unique and
innovative methods in manufacturing its goods. It sells its product by using E-commerce
business for online selling which provides an additional method to reach large number of
consumers. Research and development department of the corporation can work in a
productive manner for enhancing quality of its products by adopting unique, innovative and
cost effective techniques.
Porter’s cost leadership strategy focuses on improving manufacturing quality of the
firm for producing Low price-High quality products (Khan, 2013). Avon Company can
acquire large market position by adopting cost leadership strategy. Employees from the
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research and development department should concentrate on finding ways to manufacture
new products at superior quality by making use of advanced technology. Creation of
sustainable and innovative products will assist in increasing customer acquisition and
market share for the Avon organization. The enterprise should allocate sufficient budget for
ensuring smooth working of the research and development department (Converse, 2013).
Improved and attractive product packaging, giving varieties in the cosmetic product range
and offering commodities at the lower price as compared to its competitors will aid in
gaining sustainable competitive advantage to Avon cosmetics.
3.2
The Avon firm can use effective and functional methods for developing its
distributional channel which will help in achieving high level of customer convenience
(AVON the company for women, 2016). The corporation should ensure easy availability of
its products for its buyers so that a proper supply chain and logistics system can be
developed. Avon has adopted direct marketing channels for reaching large consumer
base. It consists of 6 million independent sales persons that sell products of the
consumers by personal selling technique. They should give proper training for handling the
consumers and running sales activities of the business firm in a productive manner.
Various innovative methods can be used in direct marketing channel to reach more
number of buyers. Online marketing methods is useful as in this the email can be sent to
the individual consumers for giving details about the products of the enterprise. Information
about the manufactured items can be uploaded on company's website in a creative way
for attracting more number of buyers (Khan, 2013). Sales representatives of the
corporation should be encouraged to develop multi level marketing channels by adding
new members in their team for selling the product in the large market area.
3.3
Pricing strategies are defined as the processes used for setting price for a particular
product for achieving objectives of the business firms (Principles of Marketing, 2012). Avon
Company can use different pricing strategies for maintaining its market position and
entering into a new market. For determining the price of the product, all the investment
cost and expected profit should be taken into consideration.
Avon Company can reduce its overall investment cost for reducing the price of the
product. The objective of the Avon enterprise was to provide superior quality products at
the reasonable price to its buyers and for achieving this objective price skimming strategy
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can be used by the corporation (Bose, 2010). In this method, initially the price of the
products are kept more for attracting consumers from high income groups and slowly price
are reduced. Reduction in price of the product will make it easier for lower and middle
income groups to purchase the Avon products at the lesser price (Converse, 2013).
Company avoids price discrimination by charging same price for identical items without
doing any favouritism. It shows ethical nature of Avon cosmetic firm.
3.4
The 6 million representatives of Avon enterprise work in a productive way for
developing efficient promotional activities of the business firm (AVON the company for
women, 2016). The marketing objectives of the business firm are to gain high sales and
revenue by selling its products at the competitive price to purchasers. Sales people are
given proper training for informing the consumers about the goods of the firm. Personnel
selling tool of the Avon Corporation provides a cost effective and easy medium for
persuading consumers to buy a particular product. Advertising of manufactured items by
using print media and electronic media can be done for developing positive brand image of
the corporation (Jobber and Ellis-Chadwick, 2012).
The enterprise also focuses on developing public relations for increasing brand
awareness. Sales representatives of the firm can play an important role in achieving
superior customer services. Satisfied consumers will recommend the product to other
people and it will aid in increasing sales of the goods and building positive image of the
enterprise (Chatzipanagiotou, 2010). Sales promotion activities should be directed for
attracting buyers and developing attractive schemes by giving discounts and coupons on
bulk purchasing which will help in accomplishing this objective.
3.5
Extending marketing mix is the collection of actions and strategies that assist the
organization to effectively accomplish its goals (Principles of Marketing, 2012). It deals
with issues faced by the business while delivering products and services to its customers.
Avon firm can use this method for achieving its objectives in a planned manner. Extended
marketing mix for Avon firm includes-
People: - Avon Corporation has workforce of 6 million people that work in a
cooperative way for gaining goals of the enterprise. Company should recruit skilled and
suitable staff members and train them to run its operational activities in an efficient manner
(AVON the company for women, 2016).
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Physical layout: - The method by which a product is offered to purchaser plays a
significant role in marketing activities of the firm. Distribution centres of Avon firm should
be attractive and located at a place which should be easily accessible to its consumers
(Cockburn and et. al., 2014).
Process: - distribution channels should be developed in an effective manner for
delivering standard consumer services. Company should solve complaints of the buyers
and take feedback from them to improve organizational structure (Hartley and Claycomb,
2013).
TASK 4
4.1
Marketing mix for two different consumer segments of Avon firm is as follows-
Marketing mix for U.S.A- People in U.S.A. Prefer to purchase higher quality products and
they do not focus on the price of the product. Promotional activities of the firm are
designed to attract consumers who like superior quality products. Sales representatives
are trained to promote the goods of the firm in an effective manner (Henley, Raffin and
Caemmerer, 2011). Distribution centres are less as people prefer to purchase from sales
representatives.
Marketing mix for Asian countries: - Individuals in Asian countries likes to purchase
from distribution centre of the firm and sales representatives are given less preference. A
small distribution channel is required to operate in these regions. The number of high
income groups and low income groups is more and preference is given for purchasing
products of reasonable quality (Kotler and et.al., 2015). Company faces cultural and
language barriers and local employees are hired for managing the business of the
companies in the Asian countries.
4.2
Business marketing and consumer marketing are different for the Avon Company.
Various types of cosmetic products are offered in the market by the organization like
LAKME, L'OREAL and MAYBELLLINE. Buyers for all the companies are same and
products requirements are also identical. It creates competition for the firms in the market
and requires them to develop strategies for gaining higher market share (Nicholson and
Oliphant, 2014). Promotional activities adopted by various firms for attracting consumers
differ but the outcome needed from the activities is same.
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Providing services and products for business requires less promotional strategies
as compared to consumer marketing due to small and focused target market. It needs less
emotional and more task orientated approach for doing business marketing. The
distribution channels are shorter and more directed (Heidt and Quazi 2013). Consumer
marketing is a single step buying process in which the buyer purchases the Avon
Company’s item from the sales representative but business marketing is a multistep
buying process in which decision to purchase is taken by the management of a enterprise.
4.3
International marketing has provided opportunity for the Avon firm to expand its
business across globe (AVON the company for women, 2016). There is a wide difference
between domestic marketing and international marketing. Under domestic marketing,
operations of Avon enterprise are done at national level and consumers are served in that
specific country only. It is easier for the corporation to work in this market due to less
communication and cultural barriers (Principles of Marketing, 2012). Competition faced by
the firm is less and due to limited geographical area, chances of growth are also limited.
To expand its business in global area, effective international marketing strategies
are required. Many challenges are faced by the firm due to cultural, communication and
social differences (Vincze, 2015). Government influence is more in this type of marketing
and it is mandatory for the Avon firm to follow rules and regulation of that particular
country. It needs large capital investment to start business in a new market and risk
associated with international marketing is more. Avon firm require specific knowledge and
competence to succeed in the international market. It should hire employees from local
countries for making its marketing operations effective and easier.
CONCLUSION
From the above report it can be concluded that Avon organization can apply
principles of marketing for gaining growth in the domestic and international market.
Development of proper distribution channel will assist the enterprise in selling its
manufactured items to large consumer base. Promotional activities of the business firm
should be designed in an effective manner to achieve goals of the enterprise.
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