Marketing Principles Unit 4 Report: Analysis of Bristol Cars Marketing

This report, focusing on marketing principles, analyzes the marketing strategies of Bristol Cars, a luxury car manufacturer. It explores the various elements of the marketing process, including the benefits and costs of marketing orientation. The report delves into macro and micro environmental factors affecting marketing decisions, segmentation criteria, targeting strategies, and buyer behavior. It examines the development of products to maintain a competitive advantage, distribution strategies, pricing, and promotional activities. Furthermore, it discusses the marketing mix for different consumer segments and differentiates between international and domestic marketing, providing a comprehensive overview of Bristol Cars' marketing approach and offering insights into how these principles are applied in the real world. The report also discusses the differences between international and domestic marketing and the application of the marketing mix for different consumer segments.

MARKETING PRINCIPLES
Unit 4
Student: Ugne Alisauskaite
Student ID: 13204

TABLE OF CONTENTS
INTRODUCTION........................................................................................................................6
TASK 1.........................................................................................................................................7
1.1 Various elements of marketing process..............................................................................7
1.2 Benefits and costs of marketing orientation for Bristol Cars.............................................7
TASK 2.........................................................................................................................................8
2.1 Macro and micro environmental factors affects the marketing decisions..........................8
2.2 Segmentation criteria for the cars in different markets......................................................9
2.3 Targeting strategy for Bristol Cars.....................................................................................9
2.4 Buyer behavior affects the marketing activities ......................................................10
2.5 Positioning strategy for the Bristol Cars ........................................................................10
TASK 3.......................................................................................................................................11
3.1 Development of product to sustain the competitive advantage........................................11
3.2 Distribution is arranged to provide quality services to the clients .................................11
3.3 Prices are set to reflect the RBS’s objective and market condition ..............................11
3.4 Promotional activity is integrated to achieve marketing objectives.................................12
3.5 Additional elements of the extended marketing mix for Royal Bank of Scotland...........12
TASK 4.......................................................................................................................................13
4.1 Marketing mix for two different consumer segments for Vodafone................................13
4.2 Difference between marketing products and services rather than consumers for
Vodafone UK..........................................................................................................................14
4.3 Difference between international marketing and domestic marketing.............................14
CONCLUSION...........................................................................................................................14
REFERENCES...........................................................................................................................16

LIST OF TABLE

LIST OF FIGURE

INTRODUCTION
Bristol cars are the biggest manufacturer of luxury cars for the consumers that are
headquartered in London. More than 45000 employees are working in the organization and
organization have showroom in the Kensington High Street, London. The main motive of the
organization is to maintain the enthusiastic and loyal clients they are the assets of the
organization. The current study assesses various elements of marketing process and identifies
the benefits and cost of marketing orientation for Bristol. The report shows micro and macro
environmental factors that affects the marketing decisions and also reflects the segmentation
basis for new cars in various markets. It aids the management while selecting the target market
strategy for the products and apply the positioning strategy for the organization. The report
explains that products are developed to gain the competitive advantage and also evaluate the
promotional activity is attached with marketing objective. It also plans the marketing mix in
different consumer segments and differentiates the international marketing and domestic
marketing.
Figure 1 Bristol Cars
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(Source: Bristol Cars, 2016)
TASK 1
1.1 Various elements of marketing process
Different kind of elements is attached with the marketing process that helps the
organization to boast up the profit margin and sales. The foremost element of the marketing
process is let the buyer beware about the products and services provided by the Bristol Cars.
Consumer satisfaction is another term that is related with the marketing process and also helps
the management to retain the organization for longer tenure. While deciding the marketing
strategy organization has to keep in mind various elements like social issues, competitor
policy, price of the product etc. Marketing is the medium that connect the organization to the
clients and always explain the pros and cons of the marketing process to the organization thus
they are able to implement the best marketing policy for the products. The elements also
contains various factors like risk, competitor’s pricing strategy, threat of new entrants, future
demand of cars, technology up gradation etc (Belch and Belch, 2016). Marketing process are
the elements that help the management to reach the expectations of the clients and always
protect the business from any severe loss. It can be said that all the elements assists the Bristol
Cars to achieve the long term objective.
1.2 Benefits and costs of marketing orientation for Bristol Cars
Market orientation is the process that helps the business to identify the current trends in
the market and also develop the product strategy that identifies the wants and needs of the
clients. It is the process that develops the product range and also tries to segment the market as
per the features and price of the product. It is the process under which organization can easily
evaluate the current market position and develop the chain of new client for the expansion of
business. It assists the business to deliver quality services to the clients and also develop the
relation among the clients and marketing manager. Marketing orientation is way under which
business can identify the competitor policy and create the bench mark for the services. For
example Bristol Cars has identified current market trends with the help of marketing
orientation and also reveal the innovative ways to increase the sales (Boso.et.al.2013). It can be
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said that marketing orientation is the way under which organization can provide desired
services to the clients, satisfactory services, reduce the cost, higher customer retention and
creates link between business and new customers.
TASK 2
2.1 Macro and micro environmental factors affects the marketing decisions
Bristol Cars is affected by the different kind of internal and external factors. Business
environment contains two kinds of factors that affect the organization in positive and negative
ways that are micro and macro factors.
Macro environmental factors
Political factors: Political factors are the biggest issues that affect the organization form outside
the organization. Government interference is the biggest issue for the organization by which
management is not able to perform self activities. The political pressure affects the
organization and it is biggest hurdle in the growth of organization. For instance government of
UK binds the organization to take the marketing decisions as per the political factors.
Technological factors: Continuous change in technology may affect the growth of the
organization and affects the productivity of the organization (Stella.et.al.2014). It also affects
the profit margin of the organization and always affects the brand image of the organization.
Social factors :- Trends, values, beliefs and norms that are existing in the society gives impact
on the marketing decisions of the enterprise. It is required that products should be
manufactured and delivered as per the requirement and expectations of buyers.
Economic factors :- changes happening in economical situations of nation also gives impact on
the marketing decisions of the entity. Inflation and deflation situation gives influence on the
purchasing power of buyers and due to that sales activities of the entity gets influenced.
Legal factors :- rules and regulations are mandatory to be follow and it is also required that
norms should be properly followed so that business activities can be carried out in legal and
lawful manner.
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Environmental factors :- climate change conditions such as temperature change, rainfall, flood
and other natural disaster also gives impact on the marketing decisions that are taken in the
enterprise.
Figure 2 Macro environmental factors
Micro environmental factors
Customers: Customer is the base of organization and it directly affects the sale ratio of
organization. Organization’s relation with clients is not good than management is not able to
sustain in the market. Bristol Cars has to maintain the relation with the clients in various ways
like quality services, provide the demanded car, latest features in the car etc.
Employees: Another important factor is employees they are the most important element in the
growth of the organization. They influence the organization from inside the organization and
also affect the operations of the organization (Kildienė.et.al.2014). It is the liability of the
organization to keep the employees motivated and develop the relation with them.
Organizational culture :- values. Beliefs, attitude and behavior of staff members makes
organizational culture. Positive support shown by employees aids for accomplishing the
required goals of the entity in better and functional manner.
Figure 3 Micro environmental factors
2.2 Segmentation criteria for the cars in different markets
Organization can segment the market on the basis of various factors like demographic,
geographic and behavioral factors. Bristol Cars is the manufactures the luxury cars for the
clients so middle class people are not able to purchase the cars so organization has to segment
the market on the basis of income of the people. It is most important demographic factor that
influences the organization to segment the market. Organization has to identify the suitable
client for the organization in order to segment the clients management conducts the survey and
recognize clients for the organization. The segmentation process is mainly focused to divide
the market and reach to the client as per the demand. Segmentation is method to divide the
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market as per the product range and allot the cars to the clients. The general criteria of the
organization are selling the cars and reach all variants of the clients (Wedel and Kamakura,
2012). Geographic factors divides the market on the basis of the location of the customers like
any clients is located in the New York than marketing manager will reach to that client and sell
the product. Bristol company can make use of following segmentation criteria for targeting
specific group of consumers :-
Demographic segmentation :-IN this segmentation criteria organization can target its buyers on
the basis of different regions, countries and physical location areas. Bristol car can make
effective marketing strategies for selling the products. Needs and requirement of buyers that
are living in a specific location can be identified so that products can be delivered according to
that.
Psychographic segmentation :- In this segmentation criteria buyers can be targeted on the basis
of age, sex, religion, financial status and educational background. For example company can
target consumers on the basis of financial status and lower, middle and high income group
consumers can be targeted on the basis of that.
2.3 Targeting strategy for Bristol Cars
Targeting is the method under which business will target the clients as per the potential
of the clients. It is the best way under which organization targets the customers on the basis of
their income, living standard, gender etc. It assists the organization to recognize the perception
of the clients and always try to increase the sale of the organization. It tries to provide variety
of cars in the market thus business is able to earn desired profits. Demographic strategy is the
best way to target the clients and always try to encourage the employees to identify the demand
of the customers in the market. To target the clients business has to develop the policy and
implement is as soon as possible. Targeting strategy assists the business to develop the
innovative product and try to increase the sales of organization. The formal contact with the
clients is the strategy of the organization and it also helps the Bristol Cars to recognize the
need of customers (Bostrom.et.al.2013). Employees must collect the feedback of the services
provided by the organization and is it suitable for the customers in the organization. Some
targeting strategies that can be used by Bristol car is as follows :-
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Undifferentiated targeting strategy :- this technique supports for creating a particular market
segment. Buyers can be differentiated and on the basis of that marketing decisions can be taken
in the organization. Large volume of products can be sold and it will also help for enhancing
financial revenues and profitability of the organization. In this method Bristol company does
not focus on entire marketing segment rather than creating a specific segment of consumers.
Company adopts single marketing mix for promoting the products in targeted market area.
Undifferentiated marketing strategy will support for reaching a large audience and it will also
help for meeting the needs and expectations of buyers.
2.4 Buyer behavior affects the marketing activities
Customer is the king of market and behavior of the clients affects the marketing
decisions. Organization has to set that kind of policy that is suitable for the customers. Bristol
Cars assess the mindset of the clients and then design the marketing strategy by which they are
able to deliver quality services to the clients. Marketing activities are the basic pillar of the
organization without them organization is not able to launch the new cars in the market.
Spending power of the clients is the basis of all the organization while deciding the marketing
plans. Behavior of the buyer depends on the price of the cars Bristol Cars has design the top
quality car that meet the expectation of buyer. The buyer behavior of the customers helps the
marketing department to increase the sales of organization. The marketing policy of the
organization must be designed on the basis of social, legal, political, and economical
(Solomon, 2014). The buyer behavior plays vital role in the growth of the organization if price
of the product is high than it creates negative perception in the mind of customers. It is
assertive that needs and requirement of consumers should be properly identified and on the
basis of that products should be developed and designed. Buyers are most significant
stakeholders of the organization that provides revenues by purchasing products. Personal
influence such as personality, lifestyle, physiological needs, beliefs and attitudes gives impact
on the purchasing decision taken by buyers. Social influences and recommendations and
suggestions given by family members also gives impact on the purchasing decisions of buyers.
Marketing activities of the business are carried out for attracting buyers towards purchasing the
products of the entity. It reflects that buyers behavior gives impact on the marketing activities
that are performed in the organization.
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2.5 Positioning strategy for the Bristol Cars
Positioning strategy plays vital role in the brand image of the organization. Bristol Cars
has to identify the innovative ideas by which they are able to meet the demands of the clients.
Positioning strategy helps the organization to set the benchmark of services for the
organization. With the context to the positioning technique Bristol Cars has to develop the
strategy that contains various aspects like mindset of the clients, service quality, and demand
of cars etc. to set the brand image in the market organization has to design the positioning
strategy with the help of marketing department. It can be said that positioning strategy
represents the good will of organization in the market or it is reputation of the brand in eyes of
the customers. It helps the business to set the positive image in the mind of the customers and
also create the brand awareness in the market (Wang.et.al.2016). The strategy helps the
business to achieve the organizational goals and maintain the brand image of the organization
in the market. Bristol organization can make use of positioning strategy for targeting specific
group of consumers for selling products and services of the organization. For example low
price strategy can be used by the organization. By making use of this approach company can
position itself as an affordable options for buyers. Lower income group and middle income
group consumers can be targeted by making use of this strategy. Research and development
department of the organization can take significant steps for adding necessary attributes and
features in the existing products.
TASK 3
3.1 Development of product to sustain the competitive advantage
Royal Bank of Scotland (RBS) is the biggest bank of UK that provides financial and
non-financial services to the clients. It is the duty of RBS to develop the services as per the
demand of the clients. RBS develop the services on the regular basis by which they are able to
gain the competitive advantage. Royal Bank of Scotland collects the ideas from the employees
and clients for the development of services in the organization that help the organization to
remain leading organization in the market. Innovative ideas help the business to retain the
customers with the organization and keep them updated with the latest facility of the bank. As
per the current market scenario all the bank has to develop the services in the market. For
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instance RBS has develop the new function in the market like online account opening that help
the business to attract the new clients towards the organization (Hatch and Howland, 2015).
Innovative services help the organization to compete in the market and provide quality services
to the customers. Market survey and online survey can be conducted for assessing needs and
requirements of buyers. In addition to that feedback forms can also be given to consumers. It
will help for identifying weak performing areas of the enterprise. Products can be developed
for meeting the requirements and expectations of clients and it will support for enhancing the
consumer base of the organization. In addition to that consumers service executives can also be
directed for taking regular feedback from clients so that necessary modifications can be done
in the attributes of services that are offered by RBS.
3.2 Distribution is arranged to provide quality services to the clients
Distribution of the services helps the organization to deliver the services on them and is
also improving the brand image of the organization. An effective distribution channel aids the
management to deliver the services on time with the help of employee support. Internet is the
best alternative for the RBS to deliver the services on time. Royal Bank of Scotland assists the
clients to commence the online transactions thus they did not face any difficulty to compete the
task. Organization provide the physical transaction to the clients if any customer visit the bank
than employees of the bank provide full support to the customer and also help bank to maintain
the relation with the customers (Plugge.et.al.2013). It is the duty of the organization to provide
quality services to the customers but sometimes due to failure in distribution management is
not able to provide the services on time. RBS has to identify the problems of the customers if
they face any problem regarding distribution channel than try to improve the distribution chain.
Customer service executives have been proper training to make proper and effective
interaction with buyers. More number of people can be hired in existing sales channels which
will support for reaching to a large consumer base.
3.3 Prices are set to reflect the RBS’s objective and market condition
Price of the services affects the perception of the buyers. If price of the products that
are offered by RBS's is high than demand of the services will be low. On the other hand if
price is low than demand is high both the context are vice versa. The main objective of the
organization is to earn profits and gain customer satisfaction. If organization will keep the
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prices high then they are not able to meet the demand of clients. RBS keep the economic prices
of products thus any person can bear the services of the organization. The main motive of the
organization is to capture market share and set the prices as per the market (Fitzgerald and
Haller, 2014). The price of the products are also depends on the competitor prices. if
competitor organization set the high prices than RBS keep the lower margin profits and set the
prices to attract the new clients.
3.4 Promotional activity is integrated to achieve marketing objectives
Promotion of the product and services help the RBS to increase the demand of the
products in the market. It helps the organization to maintain the brand image in the market and
to gain the competitive advantage. Promotion can be done through various activities like
sponsorship, marketing, online promotion through social media like Facebook, Twitter,
organization website etc. Promotion of the services helps the business to achieve the
organizational objective and also increase the sales. In order to increase the sales organization
hire the marketing representative that sale the services and products of RBS to the local people
with the help of direct marketing. Various innovative ideas and concepts are implemented by
the organization to promote the sales of the bank services (Shallu and Gupta, 2013). RBS
provide sponsorship to various events and other activities in order to promote the organization.
It can be said that promotion of brand is just like reflecting the presence of organization in the
market.
3.5 Additional elements of the extended marketing mix for Royal Bank of Scotland
RBS can adopt the additional marketing mix in the organization to strengthen the
services in the market. It is the action help the business to increase the sales of the services and
products in the market. Marketing mix is the activity assists the marketing department to
delivery and quality of the services offered by the bank. Following are the additional marketing
mix used by the RBS:
Process management: It is way under which services offered by the bank are delivered on time
with proper monitoring and as per the commitment of the organization. The quality of the
services offered by the bank is checked in this step. It is assertive that distribution channel of
the organization should be developed systematically so that services and products should be
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supplied to large consumer base. In addition to that logistic and supply chain activities of the
enterprise also needs to be improved so that services should effectively delivered to clients.
Physical evidence: The customer is paying the amount of money to the bank than it is the duty
of organization that valuable services must be provided to the clients. RBS organization gives
importance to the methods in which the products are presented to buyers. Location of the bank
is situated at a place where it becomes easier for customers to avail services that are offered by
the organization.
People: This P refers to the clients that are the basis of organization in order to retain those
RBS should design the attractive offers (Gordon, 2012). To give them better experience
organization should provide effective training to the employees. Employees of the enterprise
can be given proper training so that they can perform their assigned job in functional and
effectual way. Other than that clients are one more prominent stakeholders of the business and
RBS needs to develop products and services for meeting the expectations and needs of buyers.
Figure 4 Additional elements of marketing mix
TASK 4
4.1 Marketing mix for two different consumer segments for Vodafone
Vodafone does business in different parts of the world and organization has high
consumer channel. Marketing mix of the organization is very unique and management always
tries to attract new clients towards the organization. Organization will target its consumers on
the basis of geographic segmentation and two different consumer segments will be selected.
One market area is U.S.A and other is local country. Following are the points that aid the
management to plan the marketing mix for two diverse segments:
Table 1 Marketing Mix
Marketing Mix Marketing mix for U.S.A. Marketing mix for UK
Place In this segment organization is For selling products in local
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more focused to the select
international markets to
increase the sales.
market area management is
focused towards the markets
in the country itself.
Promotion Vodafone has to advertise the
product through social media
and organization website.
The promotion of the product
and services is done through
limited media. Advertisement
are given in news-papers and
magazines.
Price The price of the products will
set as per to the international
markets. More competition is
faced by Vodafone in
international market area.
The price of product is set
according to the confined
competitors. Less competition
is faced for selling products in
local market area.
Product Quality of the product is the
main motive
(Bowen.et.al.2014). It is
required that superior quality
services and products are
delivered to business
consumers. Higher qualyity
and lower price products are
offered.
In this Vodafone is more
concerned with the delivery of
the services.
4.2 Difference between marketing products and services rather than consumers for Vodafone
UK
Table 2 Difference between and B2B and B2C
BUSINESS TO BUSINESS BUSINESS TO CONSUMER
Size of market is small under B to B
marketing.
Size of market is Large under B to C marketing
. Mass marketing techniques are required for
attracting consumers.
Distribution channels are short and more
directed.
Distribution channel are wide and it requires
effective marketing strategies are required for
reaching to a large consumer base.
Brand values in B TO B market are developed
through personal relationships and consultative
selling
Brand values in B to C are created through
advertising and promotional methods.
Advertisements are created through
newspapers and television.
The main aim in B2B is to develop the
industrial relation and do the long term
marketing (Wilson.et.al.2102). Buying
process is more complicated.
Sales in this method are usually directed to the
consumers. Buying process is less complicated
as compared to B to B marketing
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4.3 Difference between international marketing and domestic marketing
Table 3 Difference between international market and domestic market
INTERNATIONAL MARKETING DOMESTIC MARKETING
International market provides the plat form to
the sell the services in global market.
Domestic markets are the local markets that
sell the services in the national itself.
International organization has to levy high
taxes in the services due to international taxes.
In domestic marketing Vodafone does not
include high taxes thus clients can easily
purchase them.
Here is the problem of currency exchange
and it also affects the transaction of the
organization.
There is no problem of currency fluctuation in
the local markets.
The mode of payment in the global market
is through COD and cheques (Majaro,
2013).
Local market does not have any fixed medium
of payment either it is cash, cheque, debit and
credit card etc.
More risk and complexities are faced while
selling products in international market area.
Less risk and complexities are faced in the
domestic market area.
Political intervention is more and rules and
regulations changes from one country to
another.
Rules and regulations are less complicated and
political intervention is also less.
More challenges are faced in international
marketing and uncertainties in laws and
regulations are faced.
Less challengers are faced as compared to
international marketing. Uncertainties in laws
and regulations are fewer.
More financial and other resources are required Less financial and other resources are required.
Level of competition is high and it is required
that effective and strategic marketing strategies
should be made for meeting with the
challenges.
Level of competition is low as compared to
international marketing.
CONCLUSION
The current study identifies that marketing process is the soul of every organization
without it a business cannot survive in the market. Marketing orientation help the business to
create the positive brand image in the market and also increase the sale of the business. The
report identifies that micro and macro factors affect the business internally and externally and
business segments the clients on the basis of demographic and geographic factors. The product
is developed to gain the competitive advantage and to achieve the organizational objective.
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