Marketing Principles Report: Aldi and Environmental Factors

This report delves into the core principles of marketing, examining how they are applied in a real-world business context, specifically focusing on Aldi. The report begins with an introduction to the fundamental elements of the marketing process, including research, strategy, planning, and tactics, and discusses the costs and benefits associated with a marketing-oriented approach. It then explores the influence of both macro and micro environmental factors on business operations, such as customers, employees, suppliers, and shareholders, as well as demographic, economic, political, and technological environments. The report continues by analyzing segmentation criteria, targeting strategies (niche, mass, and differentiated marketing), and the impact of buyer behavior on marketing activities. Furthermore, the report examines product positioning, product development to achieve competitive advantage, distribution strategies to satisfy customers, and various pricing decisions, including skimming, penetration, premium, and economic pricing. The conclusion summarizes the key findings and implications of these marketing principles for achieving customer satisfaction and business success.

Marketing
Principles

Table of Contents
Introduction ..............................................................................................................1
Task 1 ........................................................................................................................1
Task 2 ........................................................................................................................2
Task 3 ........................................................................................................................5
Task 4 ........................................................................................................................7
Conclusion .................................................................................................................9
References ..................................................................................................................10

INTRODUCTION
In present scenario, business proved itself as an important and creative aspect by which business
organizations fulfil their needs. In this respect the basic contention of organizations is to achieve
customer satisfaction after following different marketing principles. This is the process by which
goods were moved from the side of producer to customer to satisfy their wants. In this particular
report the focus point is to judge the various marketing principles and how they will be used to
maximize a company’s profit and to achieve their ultimate goal of customer satisfaction also the
environmental factors which are responsible to flourish a business in modern context.
TASK 1
1.1
Elements of marketing process
Marketing principles are supposed to be an important aspect of a business organization as they
help in to propagate their business accordingly. There are some essential elements of marketing
process that may be used by Aldi are as follows:
 Research: If a company wants to launch a new product in market than first thing they
need to do is market research. It really determines that what is actually is in demand in
market. Also it helps company to adopt message and medium accordingly.
 Strategy: After an effective research a company knows their standing position in market
as well as their strengths and weaknesses too. A company should make an effective
strategy to beat competitors in market and to achieve their visions.
 Planning: A plan is a way to frame a company’s future as it includes many things like
planning related to finance, sales forecasting, strategy for communications to meet with
their strategic goals (Jobber, D. and Ellis-Chadwick, F., 2012. ).
 Tactics: These are considered to be the short term plans which a company may
implement to attract more customers and to beat their competitors which helps in to
increase their sales.
1.2
Costs and benefits of marketing
To develop the products of a business organization one should follow marketing oriented
approach or product oriented approach. The wants of customers are defined under the concept of
marketing oriented approach and they will make their decisions according to demand of
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customers and not by their personal planning methods. Mainly all organizations follow this
approach for marketing and the benefits for same are mentioned below for Aldi:
 Totally centred for customers: Aldi is an organization which totally gives emphasis to the
wants and demands of customers (Sheth, J.N. and Sisodia, R.S., 2015. ).
 Fulfil demands: Alsi always give their reaction of demands raised by their customers.
 Make benefits to customers: It always helps Aldi to create a value for buyer which
increases loyalty of customers which help them in frequent shopping.
 Justifiable competitive advantage: Aldi promotes their products and provide their services
according to customers demands and needs and it result to that it conforms the use of
products and services which increase competition in market in front of their competitors.
This concept also has some disadvantages submerged in it like:
 The research is comprehensive but is a costly one.
 Increase in the benefits of a company also effectively increases their price tag.
 Prediction is in fewer amounts as the choices of customers are in diverse form.
TASK 2
2.1
Influence of Macro and Micro environmental factors
Business environment is classified between two major segments i.e., macro environmental
factors and micro environmental factors.
Micro environmental factors are as follows:
A). Customers: It is an important pillar for success of an organization as by providing good
offers and products Aldi attract customers in larger number.
B). Employees: Aldi also have skilful, knowledgeable and motivated employees to fulfil their
roles and responsibilities effectively (French, J., 2010. ).
C). Suppliers: If an organization has an effective supply than it is good for them to achieve a
healthy competition in market.
D). Shareholders: It is mandatory to maintain good relations with shareholders for a successful
outcome (Frederiksen, L.W., Solomon, L.J. and Brehony, K.A. eds., 2013. ).
Macro environmental factors are mentioned below:
A). Demographic factors: These are the factors which include customer’s age, sex, occupation,
location and density.
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B). Economic environment: It includes the capability of buyers to spend.
C). Political environments: It includes the rules and regulations or the laws made by state or
national governments and their subsequent intervention in business activities.
D). Technological environment: This includes the modern technological machineries, processes
and systems.
2.2
Segmentation criteria used for products
Aldi is an organization which bears a very diverse range of products for their different
customers. Firstly it may divide the whole market into some specified segments which covers
different aspects of business activities and they are as follows:
A). Geographic variable: Aldi may segment their surrounded market on the basis of size,
population, geographic area and the atmosphere of a region.
B). Psychographic variable: Aldi may segment their market on the basis of beliefs, feelings,
thoughts of customers, lifestyles, values, interests, class and social status, personality and many
more.
C). Behavioural variable: By this factor the company may divide whole market which is
specifically based on behaviour of customers for purchasing like readiness and ability to buy,
loyalty towards an organization, occasions and users status (Sferle and et.al., 2012.).
By this it was clear that Aldi is an organization which provides several types of groceries to
customers who have their different needs and wants according to their demand itself and to
achieve customer satisfaction a company needs to work accordingly.
2.3
Targeting strategy
Basically business organizations produce goods and services for customers having different
interests. To maximize their profits and to achieve customer satisfaction an organization may
select different target strategies like selected of differentiated marketing, concentration/niche
marketing and undifferentiated/mass marketing.
 Niche marketing: In this kind of marketing organizations selects some group of peoples
in form of customers from all others. These organizations keep strategy of less bargaining
and maintain a minor overhead. Generally the organizations which have their
specialization in some products and services may use this strategy.
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 Mass marketing: This strategy was generally followed by big organizations because they
produce goods and services for whole market. In this strategy the organizations produce
goods in large amount and sell those goods on justifiable prices and earn a little amount
off profit per product. It helps in to achieve a huge amount of profit.
 Differentiated marketing: In this kind of strategy by using a company’s own marketing
mixes that company targets each segment. By this they will notice a subsequent increase
in customer loyalty and customer satisfaction also. It also generates goods in a huge
number and sells them on nominal prices.
2.4
Influence of buyers behaviour on marketing activities
The buying behaviour of a consumer is the emotional as well as mental processes and the
observable behaviour during purchasing and after consumption of goods and services. The
activities associated with a business are largely affected by the behaviour of a buyer and it
depends upon consumer to involve them in these activities highly or lowly as well as it also
depends upon intangibility and tangibility of value of products. There are majorly four kinds of
buying behaviours and they are as follows:
 Complex buying behaviour: In this the customers are highly involved and take a lot of
time to buy a product because these products are somewhat precious and customers seeks
an advise of expert to buy that product (Lefebvre, R.C., 2012.).
 Variety seeking behaviour: In this kind the customers are not highly involved themselves
as there are other options and varieties of same kind which have their existence in market.
 Dissonance buying behaviour: In this the customer is highly interested in a product but
they are in less variety just like tiles of a floor.
 Habitual buying behaviour: In this the interest of customer is low and same kinds of
products are available to buyers in market.
2.5
New positioning for products
A Business organization is supposed to give emphasis on positioning of products as it helps in to
generate loyalty in business. It is defined as a technique of marketing to present the products of a
company in best possible manner among different audiences. Product positioning and market
segmentation are correlated to each other and organizations decide their product positioning
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according to product segmentation. In positioning different organizations creates their own
messages regarding to their products and deliver them to target maximum customers by using
different types of mediums like televisions, magazines, leaflet, radio etc. The message send by
them includes symbols and manipulation which ensures success of positioning which majorly
depends on expert advice, creative ideas, fast service, immediate results, caring attitudes, high
quality, low price, emotional supports and technical experts also.
TASK 3
3.1
Developments of products to attain competitive advantage
In present business scenario companies apply different techniques to attain advantage in
competition. Development of product is supposed to be an important key strategy to achieve
sustainable advantage in competition. Organization may develop or improve the quality of their
existing products or can make new products for customers. Product developments have their
insubstantial as well as physical benefits. Product development could be conducted by two
parallel methods; the first one is associated with market research and analysis and the second one
is related to engineering in detail, product design and idea generation. To maintain
competitiveness in market a company should conduct a product development. In this respect
product development shall be conducted by some steps and they are as follows:
A). “Fuzzy front end” which means generating ideas in process of product development.
B). Screening of ideas proposed.
C). Development of concept and their testing.
D). Analysis of business.
E). Market and beta testing.
F). Effective implementation of technique
G). Commercialization
H). Decide a reasonable price for new product
3.2
Arrangement of distribution to satisfy customer
The organizations manage their product distribution according to their convenience but more
emphasis will be laid on availability of product in adequate quantities at that place from where a
customer will normally shop those products. The primary objective of organizations is the cost of
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physical distribution which includes transportation, inventory and storage as low as possible. It
always depends on the nature of product that which place is required by that product to choose
selective, exclusive and or intense distribution network when a company is selecting wholesale
dealers and normal dealers also. For example; the product who have a label of low price was
consumed on daily basis by consumers and if the price would not be decreased than consumer
may bought that particular commodity from any other shop as competitors are available in
market.
3.3
Decision of prices in accordance to achieve market objectives and conditions
There are many price strategies followed by different business organizations like Skimming of
price, penetration of price, focused based pricing, pricing related to product life cycle and
discount pricing and the detailed explanation of these are as follows:
A). skimming of price: In this type business organization tends to keep high price. The rise in
price or fall in price will be accordingly done after following simple supply and demand function
(Izvercianu, M., Seran, S. and Buciuman, C.F., 2012,).
B). Penetration of price: In this type of strategy the organizations will decrease their prices to
conquer a position in market. In this they spread certain level of knowledge about product and to
attract maximum customers at a time.
C). Premium pricing: In this the company provides a product of good quality on high price and
extra charges were also be taken by them for quality product.
D). Economic pricing: In this the product quality is comparatively low and the prices of same are
also low and this is also called as minimum pricing.
3.4
Integration of promotional activities
Promotion is defined as an activity which advertises certain goods and services in front of
customers in market to earn more and more profit to them as well as increase customer
satisfaction too. Promotion is considered to be a key element of marketing mix and to make a
successful competition in market and for that purpose there are certain methods of promotions
which are used by organizations like sales promotions, public relations, advertising and personal
selling. When a company targets to achieve their marketing objectives than it should be
comprised of promotional activities. There are some other promotional activities also such as
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reach, consistency, repetition and coordination. For promotions organizations needs lot of money
to spend so the advertisement created by them should reach up to customers. Some of the most
common mediums for advertisement are city transport, websites, radio, television, social media,
newspapers, magazines etc. One of an effective promotional activity is personal selling and some
forms of personal selling are message, telemarketing, correspondence and individual gathering.
Different organizations many times provide different promotions to increase sales in relation
with customers.
3.5
Additional elements of extended marketing mix
The elements which are very important of marketing mix are product, promotion, place and
price. Later on three elements were also been added in this category which are physical evidence,
process and people. They are elaborately mentioned below:
A). People: Employees as well as management are responsible for activities relating to marketing
and they also provide an exposure to organizational culture to customers and outsiders as well by
using their services. Human resource management is majorly responsible to hire some new
dynamic employees especially for the department of marketing. The employees who are dynamic
in nature help in to promote the products and services. HRM also assist some coaching institutes
to increase knowledge, skills and efficiency of the employs.
B).Process: Marketing activities are some activities conducted by some processes such as service
consumption, service delivery and offerings. Management of marketing should taken into
consideration the difficulty and effectiveness of these processes otherwise that marketing
message should be out of reach i.e., not in reach to customers which desired to buy that particular
thing (Glassman, T.J. and Braun, R.E., 2010.).
C). Physical evidence: This element includes facilities, infrastructure and service deliver. The
delivery of services is in quick and family manner
TASK 4
4.1
Marketing mixes for two segments
Marketing mix is defined as placing of right product or their combination on right time and at
right place. One of the difficult aspects of this is that a person needs to know his business plan
fully. In this sector there are 4Ps which are responsible for marketing:
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A). Product: It is an item produced by different companies to satisfy wants of customers and to
achieve customer satisfaction.
B). Price: A price is a definite amount which is paid by customers to enjoy that particular
commodity (Dann, S., 2010.).
C). Place: Distribution of product is an important aspect as a company have to place their goods
on a place which is easily accessible to potential buyers.
D). Promotion: It is a process to advertise certain goods and services which help in to increase
their brand value as well as their sales too.
Generally segments of different organization in market are based on different factors like
geographically, demographically, physiographic and customer behaviour. Aldi is a the store
working in UK and Ireland and the business environment on both the places are comparatively
different so in result to that there will be variations arises in prices of same kinds of goods and
methods used for promotions are also different in both the countries.
4.2
Differences in marketing products and services
In business scenario different companies have their different products on sale. According to
demand incurred in market a company will develop their products and services because there is
limited number of customers in market. In market there is a large ambit of products available to
buyers of same kind. In this context there are two kinds of business the first one is Business-to-
business (B2B) and second one is Business to consumers (B2C). B2B marketing is defined as
propagation of business activities between two or more businesses and to exchange their goods
accordingly includes some features which are as follows:
A). Driven relationship between businesses.
B). Maximization of the value of relationship.
C). Market is small and focused (Nowak and et.al., 2015.).
D). Process of buying is multi-step as the cycle is for longer sales.
E). on personal relationship the brand identity will be created.
B2C marketing is defined as the selling and purchasing of goods and services between
Businesses and consumers. It also includes certain features in it which are mentioned below:
A). Value of transaction will be maximized.
B). Target is large in market.
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C). Buying process is of single step and sales cycle will be shorter.
D). by imagery and repetition brand value will be created.
4.3
Difference between domestic marketing and international marketing
Domestic marketing (DM) is defined as strategies of marketing of a company are in propagation
on a national scale i.e., within local limits or in small area of a country whereas International
marketing (IM) will be done by a company across the globe which covers a large area. Some
other differences of Domestic and International marketing are as follows:
1). Area served will be less in DM as compare to IM.
2). Intervention of Government is low in DM and high in IM.
3). Business is in operation in single country only in DM while more countries will be covered in
IM (Rudd, D. and Mills, R., 2011.).
4). In DM use of technology is comparatively much less than IM.
5). Risk factor is Low in DM whereas extremely high in IM.
6). Requirement of capital is low in DM and is high in IM.
CONCLUSION
It has been concluded from above mentioned report that to earn a success in a business
environment than the company needs to follow out marketing principles which enhance their
sales and helps in to achieve customer satisfaction (Challagalla, G., Murtha, B.R. and Jaworski, B.,
2014.). Further the main feature of marketing principle is promotions initiated by different
business organizations to spread their brand name in market. Aldi is a grocery store which is in
successful position currently and the workers employed in Aldi are in large number. Aldi always
want to set up a friendly environment to their employees and to construct an incredible team for
better outcomes.
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