Marketing Principles Report: Strategies and Analysis for Avon Cosmetic

This report delves into the application of marketing principles, using Avon Cosmetics as a case study. It begins with an introduction to marketing, defining its core elements and the benefits and costs of a marketing orientation. The report then examines the micro and macro factors influencing marketing decisions, including employees, customers, suppliers, competitors, political, economic, social, technological, and legal factors. It analyzes market segmentation strategies, focusing on demographic and geographic approaches, and explores target strategies to boost sales, including product life cycle management and promotional activities. The report also investigates buying behavior in different situations and proposes a new marketing position for an Avon product. Furthermore, it discusses ways to achieve competitive advantages through product development and distribution strategies for customer convenience, different pricing strategies, and promotional activities. The report also covers the differences between products and services, and domestic and international marketing, concluding with a comprehensive overview of the marketing principles discussed. The report provides tables and illustrations for clarity and understanding.

Marketing Principles

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Elements of marketing process.............................................................................................1
1.2 Benefit and cost of marketing orientation.............................................................................2
TASK 2............................................................................................................................................2
2.1 Macro and micro factors which affect marketing decision...................................................2
2.2 Criteria for segmentation of different market.......................................................................3
2.3 Target strategy for boosting up the sales...............................................................................4
2.4 Buying behavior at different buying situations.....................................................................5
2.5 New improved marketing position for a product provided by Avon Cosmetic....................6
TASK 3............................................................................................................................................6
3.1 Ways to attain competitive advantages through product......................................................6
3.2 Distribution done to achieve high customer convenience.....................................................7
3.3 Different pricing strategies....................................................................................................7
3.4 Promotional activity..............................................................................................................8
3.5 Additional elements of marketing mix..................................................................................8
TASK 4............................................................................................................................................9
4.1 Marketing mix for two different segmentation.....................................................................9
4.2 Difference between products and services............................................................................9
4.3 Difference between domestic and international marketing.................................................10
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

Illustration Index
Illustration 1: Segmentation.............................................................................................................5
Illustration 2: Product life cycle.......................................................................................................6
Illustration 3: Distribution channel..................................................................................................8
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Index of Tables
Table 1: Demographic segmentation.............................................................................................11
Table 2: Geographical segmentation.............................................................................................11
Table 3: Product V/s Services........................................................................................................12
Table 4: Domestic V/s International marketing.............................................................................12
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INTRODUCTION
Marketing principles can be as a process through which organization promote their
product and services which they want to deliver to their customers. In other words, it can be
determined as a mixture of several plans or ideas which are been applied by the firm to make
effective promotion to their product and service (Marketing principles, 2014). In this context,
organization make use of different strategies with the help of which needs and requirements of
customer are identifies. Accordingly, changes are product and services are developed through
which service users are satisfied. Present report is about, Avon which is American international
manufacturer which develops beauty, personal care and household products. This firm was
developed in the year 1886 by David McConnell from New York. This report covers the
elements which are been used in marketing process. Further, it covers the impact of micro and
macro business environment over the cited firm. Lastly, it also includes difference between
domestic as well as international marketing.
TASK 1
1.1 Elements of marketing process
Marketing can be defined as a process through which organization convey information
regarding their product and services (Cui and Choudhury, 2015). In this context, there are many
elements which has to be considered by organizations like Avon so that desired goals and
objectives can be achieved. Following are the elements falls under marketing process:
Research: It is very important to conduce research so that customers taste and
preferences can be determined. It helps in developing product and services according to their
needs and wants. Changes in customers preferences takes place frequently and in order to gain
profit Avon should make frequent research so that product can be developed accordingly.
Strategies: There are many strategies related to marketing which should be adopted.
Tools for advertisement like television, newspaper, social media, etc. should be used so that
organization will be able to increase their sales.
Environmental analysis: This is very important as it helps in identifying the areas in
which organization lacks. Avon should make use of tool like SWOT, PESTLE, Porters five
forces, etc. (De Chernatony, McDonald and Wallace, 2010) These tool will enable to conduct
environmental analysis with the help of which cited firm can develop strategies through which
barriers can be reduced.
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1.2 Benefit and cost of marketing orientation
Marketing orientation can be defined as developing products and services according to
the needs and requirement of customers with an aim to satisfy them. Following are benefits and
cost of marketing orientation for Avon:
Cost: In order to develop a new product or services, organization has to spend highly
towards the research. High cost is incurred in order to develop product according to customers
requirement (Ferrell and Hartline, 2012). In addition to this, Avon has to make a proper strategic
plan with the help of which has to deliver the developed product to customers.
Benefits: With the help of effective advertisement, personal selling, etc. cited firm will be
able to increase their customer base and this will lead into achievement of goals and objectives.
With this, their revenue and profits will be increased and organization will be able to attain their
mission and vision.
TASK 2
2.1 Macro and micro factors which affect marketing decision
Both micro and macro factors have high impact over the marketing decisions. Following
are the micro factors:
Employees: They are the face of the organization as they have direct interaction with
customers (Kärnä, Hansen and Juslin, 2003). The employees of Avon are very skillful and are
highly trained as a result the information regarding product and services are been effectively
conveyed to customers.
Customers: They are the one because of which Avon gets to know they are gaining profit
of incurring losses. Cited firm make frequently conducts research so as to develop product and
services accordingly there requirements.
Suppliers: They deliver the material which are required to develop finished products. In
order to meet up the demand of goods it is essential to maintain a good relationship so that
demand could be met.
Competitors: There are many organizations which provide similar product and services
(Marks, Wentland and O'Connor, 2014). Avon has to frequently make changes in their product
line have to come up something new so that customers prefer to buy their products.
Following are the macro factors which influence decision making:
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Political factors: Government make changes in the policies like fiscal, monitory, etc.
Frequent changes affects the business operations of the organization negatively. Cited firm has to
make changes in the pricing of their product so that balance can be maintained.
Economic factors: This includes situations like inflation and recession. Because of this, it
affects the purchasing power of customers (Luca and Suggs, 2013). As a result, the sale of the
commodities are highly affected.
Social factors: The taste and preferences of customers vary from country to country. In
this context, it is important for the cited firm to understand customers and should provide them
products accordingly.
Technology factor: Changes in technology takes place frequently and it is important that
Avon make use of new or updated technology. This is very helpful in providing better services
and in understanding customers effectively.
Legal factors: There are many laws which are to be followed and business operations
should act accordingly (Eskandari, Miri and Akbarian, 2015). When firm do not follow the laws,
then it creates wrong perception among customers mind.
2.2 Criteria for segmentation of different market
Segmentation can be defined as process in which customers are sub divided so that better
services can be provided (Marketing principles, 2014). In accordance with the case, Avon has
divided its target customers on the bases of demographic and geographical segmentation.
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Demographic segmentation: This is a type of segmentation in which customers are been
divided in according to age, gender, income, status, culture, etc. (Puzakova, Kwak and Bell,
2015) In accordance with the case, the product developed by Avon are provided in different
range according to age and income. There are many competitors which provide similar products
and this is very helpful in attracting huge customer base.
Geographical segmentation: This type of segmentation is done when the organization
has its business operation at different countries. Avon delivers its product at different market and
it has covered almost all the countries in the world.
2.3 Target strategy for boosting up the sales
There are many strategies which can be adopted by Avon in order to boost up their sales.
Following are few of them:
Product life cycle: When a product s developed, then there are mainly four stages
included which are introduction, growth, maturity and decline (Gerhardt, Hazen and Lewis,
2014). Maturity is the stage in which organization get maximum profit and this is the state in
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Illustration 1: Segmentation
(Source: Marketing principles, 2014)

which firm should make use of promotional strategies with the help of which the profit through
the product can be maintained. Promotional strategies include discount offers, personal selling,
free gifts, value added services, etc.
Product variability: It is very important for the manufacturer to develop product of same
quality. But there are situation where the firm make changes in the product delivered to
customers. In order to boost up the sales and to maintain the good perception of customers
towards the product Avon should provided their commodities at high quality.
Competitors marketing strategy: It is important to know the strategies which has been
adopted by the competitors cited firm may be able to make decisions for their business operation
as well (Shank and Lyberger, 2014). There different ways through which competitors marketing
strategies can be tracked. It includes different ways like signing up for google alerts, getting
information for social media, becoming as secret shopper, etc.
2.4 Buying behavior at different buying situations
There are many factors because of which the buying behaviour of customers is highly
influenced. Following are few of the factors:
Psychological motivation: Customer tend to buy the product when they see
advertisement on television, newspaper, social media, etc. In addition to this, friends, family, etc.
also play vital role in developing motivation towards the product (von der Heidt and Quazi,
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Illustration 2: Product life cycle

2013). When customers get to know about the product from different sources, then it develops
psychological motivation which enable to buy the product.
Demographic: It includes age, sex, income, status, etc. this has great impact over the
buying behaviour of customers. Service users get attracted to those products which are been
provided to them according their preferences.
Organizational buying: This can be determined as a process in which organization
develop a need for the product and services (Wong and Huang, 2015). Firm make use of various
promotional tools in order to create a good perception among the mind of customer towards the
product.
Product life cycle: There is a declining point for every product but when the firm
manages to extent the maturity stage, then customers tend to buy the product.
2.5 New improved marketing position for a product provided by Avon Cosmetic
Positioning can be defined as effort in influencing customers perception towards the
organization or product (Baldacci, Mingozzi and Roberti, 2011). In accordance with the case,
cited firm that is Avon Cosmetic is planning to reposition their product that is Avon Naturals
Ayurvedic Whitening Cream. In this context, it is important for the organization to make use of
marketing mix so that firm will be able to their positioning effective. There are seven elements
involved in marketing mix and these elements will be help for the firm to make the positioning
effective. This product can be stated as one of the best make up cream which will help to whiten
up the skin. In order to position the product, firm can make use of promotional tools with the
help of which positioning is possible.
TASK 3
3.1 Ways to attain competitive advantages through product
As it was discussed above, there are many organizations which provide similar product
and services. In order to attain competitive advantages, one of the best way is by develop product
which will be helpful in satisfying customers effectively (Wu, 2012). In this context, research
should be conduced as it will enable to understand the opportunities which prevail in the market.
The needs and requirements which will help the organization to come up with suitable product
which will satisfy customers efficiently. There are many cases in which organization do develop
new products but they fail to make improvements in the products because of which they fail to
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satisfy customers. From this, it can be stated that firm should make improvement in the product
with the help of which customers can be satisfied.
3.2 Distribution done to achieve high customer convenience
There are many channels available through which organization can effectively distribute
their product and services. In this context, Avon should also make use of all the retail shop so
that commodities can be delivered effectively to customers (Al Daoud, Alanyali and Starobinski,
2010). In addition to this, firm can also sell their product online as the rate of purchases through
online is increasing drastically and this will be very much convenient for the customers. Further,
organization should be able to meet the demand of customers so that they could be satisfied and
relationship will be maintained. Moreover, there are many distribution channels which can be
followed by the firm.
Organization can made use of second channel of distribution as the intermediaries involved is
less. This way organization will be able to deliver its product at lower cost.
3.3 Different pricing strategies
There are different types of pricing strategies which can be adopted by the organization.
Price can be determined as one of the main factor because of which customers tend to buy the
product (Cui and Choudhury, 2015). When a product is been introduced, then the best way to
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Illustration 3: Distribution channel

increase the sales is by delivering the product at low cost compared with the price of
competitors. Among the pricing strategies one of the strategy is psychological cost. According to
their pricing strategy, the price of the product is kept an odd number like 99, 91, etc. This is very
helpful in attracting customers as it influence customer buy the product. Skimming strategy, it is
a type of method in which the price of the product is kept high at the initial stage, then slowly the
price is reduced.
3.4 Promotional activity
Promotional activity can be defined as a process through which organization promoted its
products and services. In this context, there are strategies which can be used by the Avon. It
includes strategies like personal selling, in this the employee will visit to different houses and
convey regarding the product (De Chernatony, McDonald and Wallace, 2010). One of the main
advantage is that, customer can clarify all the doubts regarding the product. Online selling is the
modern technique which is increasing drastically. It is helpful in increasing the sales and in
providing the product to customers to their door steps. There are many social sites like Facebook,
Twitter, etc. which help in promoting the product and in increasing the brand image. In addition
to this, cited firm can also make changes in the packaging. There are many research done and it
has been found that packing of the product has great impact over the buying behaviour of service
users.
3.5 Additional elements of marketing mix
Following are the additional element of marketing mix which are equally important as the
other elements:
People: These are employees of the organization and it is the responsibility of the firm to
make sure that they provide a healthy environment for their employees (Ferrell and Hartline,
2012). All the needs and requirements should be fulfilled so that they will be able to provide
better services to customers.
Process: This can be determined as the process through which organization deliver their
products to the customers. It is important for the organization provide their customers with value
added services so that better relation can be maintained.
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