Comprehensive Report on Business Marketing Tools and Strategies

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This report provides a comprehensive analysis of various business marketing tools and strategies essential for achieving a competitive advantage in the market. It evaluates the use of PESTLE and SWOT analysis in market planning, emphasizing their importance in understanding the external environment and internal capabilities. The report discusses the significance of the promotional mix in creating effective promotional materials, along with an examination of the stages of new product development and product portfolio analysis using the product life cycle. Furthermore, it assesses different types of marketing and distribution channels for consumer products, analyzes the roles of intermediaries, and explores the reasons for the growth of direct marketing, highlighting the shift towards targeted customer engagement. The report uses Zara as an example to illustrate practical applications of these marketing tools and strategies.

Business Marketing Tools

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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
Task 2...............................................................................................................................................6
Task 3...............................................................................................................................................9
Task 4.............................................................................................................................................12
Task 5.............................................................................................................................................13
Conclusion..................................................................................................................................... 14
References......................................................................................................................................15

Introduction
A company has to take different promotional strategies and actions to secure sound amount of
returns on its investment from a competitive market. These promotional strategies are called
marketing tools, without which, a company cannot have proper market capitalization. There are
different types of marketing tools available, but to evaluate the market scenario properly; one
organisation has to pick the authentic options. The following report will focus on such marketing
tools, which are often used by profit seeking organisations. The efficiency of the selected
marketing tools will be evaluated and their importance will be elucidated. Using these marketing
tools one organisation can experience better growth in newly penetrated markets. Analysing the
internal environment of an organisation becomes easier after considering the marketing tools as a
business development instrument.

Task 1
1.1 Evaluate the use of PESTLE and SWOT analysis in market planning
Evaluation of pestle
PESTLE analysis is conducted to have an idea of business development opportunities in a
particular location. The elements of PESTLE analysis have the potential to influence the
business. The effect of these elements changes depending upon the geographical location and
type of business.
Political- The political factors determine the extent to which the government of a particular place
may influence an industry. The government policies may affect the revenue generation process
of an industry in a positive or negative manner. This is why political factor is important to be
taken into consideration. The government policies may include certain taxes that can affect the
annual revenue generation positively.
Economic- Economy of a particular place has good impact in companies’ annual revenue
generation. This factor helps in formulating new pricing strategies for a particular industry or an
organisation. The inflation rate is a part of this element and if the inflation rises, the earning of a
company will face depreciation with it.
Social- Products or services offered by an organisation should be accepted by the society. These
factors scrutinize the social ambience of a particular market. Demographics, culture and many
other aspects are included in social factors of a market (Pestle analysis, 2018). These aspects
affect the buying decisions of the customers and that is why analysing the factors is important for
the companies. Social factors help in determining what the people like and what the company
needs to include in their product line up. A negative factor is the social factor like customer
behaviour can change anytime and the company will face issues while comprehending with it.
Technological- Technological factor analysis helps in determining technological awareness a
particular place. The analysis helps in determining the acceptance of new technology and effects
of it to an industry. Technology provides opportunity to do a work in a convenient manner but
the complexity of modern technology often causes issues to the employees.

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Legal- The legal factor analysis helps in determining policy related changes, which a company
might need to do in its internal environment to penetrate a new market. The existing labour laws,
safety laws, consumer protection laws of a market influences market capitalisation and
functionality of an industry in a positive or negative manner.
Environmental- Geographical location, climate weather are not the only factors related to
environmental analysis (Pestle analysis, 2018). The business environment is also a part of
environmental analysis and these factors can affect industries that are willing to do business in a
particular place.
Evaluation of SWOT analysis
Strength- Strength of a company helps in determining the sections, which keep it ahead of the
rest of the competitors. Analysing the strengths, the organizations will derive sections, which can
be utilised to gain positive returns from the market. The core strength of a company can be the
employee number, efficiency of the employees, expertise of the employees and many other
factors.
Weakness- the factors, which prohibit an organization from its optimum performance, are the
main weaknesses. By focusing on the weaknesses, one organization can minimise the possibility
of encountering loss in the business. However, the analysis does not provide any solution to the
problems.
Opportunities- favourable external factors are usually regarded as opportunities for a company.
The organization can use these factors for competitive advantage in their business venture. This
is a significant factor to be taken into consideration for gaining more profit from the market. The
analysis does not help in selecting an approach process to exploit the opportunities.
Threats- the factors that can harm an organization or prohibit it from gaining competitive
advantage are regarded as threats for the organization (Business.qld.gov.au, 2018). Threat
analysis helps one organisation to take precautionary steps before significant financial loss from
a business venture.
From the evaluation of these two factors, it can be stated that an organization has to consider
PESTLE and SWOT analysis as an important tool for market analysis. An organization will be

benefited, financially and strategically, in long-term business ventures by proper analysis of the
market with these tools.
1.2 Discuss the importance of promotional mix in the production of promotional material.
Promotional materials are those tangible or intangible substances, which have the potential to
provide advantage to an organization in the competitive market.
Promotional materials help an organization to stand apart in the market to get more customers
and thus one company earns good profit from the market. Apart from this the promotional
materials often helps an organization to create a brand name for it.
Product- a product can be tangible like software, garments and other things or intangible like
service provided by an organization. To flourish in the market, better product line up is essential
for any organization. This results in sales increase and extended market capitalization for an
organization.
Place- the business ground of an organization is important to be taken into consideration. In the
era of technical evolution internet is the largest ground to make business (Manthei, 2017). The
products offered by an organization have to be available in the required places. This will help a
company to maintain necessary customer concentration to gain profit.
Promotion- the organization has to advertise about the products to gain customer notice. This
will increase the sales of the organization in a proper manner.
Price- Price is not only related to the monetary aspects but also related to the invested time of a
customer to acquire the product or service. Pricing should be adequate to have better customer
concentration for competitive advantage.
Task 2
2.1 Analyse the stages of new product development
Idea generation- Customer needs is identified and with proper brainstorming, new product idea
is developed.
Idea screening- necessity of developing a new product and the ability of the organization to
produce the product is evaluated.

Concept testing- Concept is tested according to the customer needs in this section. A successful
testing will help in formulating a product line up, to gain market capitalization.
Business analysis- the benefits one company will have from the product is analysed in this part.
Depending upon business analysis the company will get an idea of return on investment. This
information makes the part important in product development.
Product development- Plans related to product development is formulated and financial
condition of the organization is evaluated (Innovation Coach, 2013).
Test marketing- In a very small scale the product is introduced to the market to gain knowledge
about its performance. This is an important step to gather information on customer acceptance
and needed product modification.
Commercialization- After successful test marketing a large scale of products is introduced.
Depending upon commercialization different retail companies determine the success of a
particular product of a particular company.
Review of market performance- reviews help in determining the flaws present in the product.
Later the products are improved for better market reputation of the brand. Reviewing the market
performance will help a company to formulate newer market approach strategies, which are
essential for them.
2.2 Conduct a product portfolio analysis incorporating the product life cycle
Introduction- A product is introduced to the market for the first time and reviews are collected
from the users to add necessary changes to it. The company gets an idea from the reviews given
by the users and the in accordance with the reviews changes are introduced (Hedberg Jr et al,
2017).
As an example Zara needs to make sure that, they are delivering proper service to the newest
market. If the reviews are bad then the company will face loss in initial phase.
Growth- This is the phase in which the organizations try to build brand image and spread the
product to the entire market to gain revenues. The product undergoes different changes and
ultimately emerges as perfect option. Zara offers different garments, which are relevant with the
needs of the customers.

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Fig 2: Product life cycle
(Source: Prnewswire.com, 2018)
Maturity- the growth of the company and sales diminishes. The company introduces similar
kind of services or products that minimises the sales of the company. In case of Zara, they
introduced cost effective garments, which took the market from other organisations but affected
the internal business also.
Decline- the product starts to lag behind new products and ultimately stops providing profits to
the company. In case of Zara’s business, similar incidents have been experienced when Gucci
came in business.

Task 3
3.1 Evaluate three types of marketing/distribution channels for consumer products
Zero level channels- the product developers of an organization directly meets the customers.
Zara does not have any zero level channels (Jerath et al., 2017). The producers obtain extended
financial benefits from the channel because of the absence of an intermediary.
One level channel- the channel has only one intermediary and it is beneficial for the garment
retailers. Zara works as the retailer who takes products from the producers and sells it to the
customers. The consumers need more time to make a decision on which product to choose; the
producers find the idea of selling the goods to an intermediary just to ensure their financial
stability.
Fig1: Basic channels of distribution
(Source: created by author)
Two level channel- In this phase the wholesalers and retailers act as the intermediary. The
customers can directly buy goods from the wholesalers in a bulk and get discount on the total

price (Jerath et al., 2017). This is often beneficial for the customers because unlike retailers, the
wholesalers provide discounts.
3.2 Analyse the role of intermediaries
Wholesalers- The role of the wholesalers is important in marketing ventures of Zara. The
wholesalers find the potential buyers for a product or service. Apart from this, the wholesalers of
Zara connect the company and the customers via retailers of the product.
Distributor- The distributors of Zara have a variety of products in their collection, which they
provide to the potential buyers (retailers and wholesalers) and gain profits. The presence of
distributor minimises the product sorting cost and buyers get the desired service or product in a
lower price (Ahn et al., 2011).
Retailers- They receives regular reactions from the market and delivers it to Zara. In this
manner, the product development section gets the needed information and work according to it.
From the above discussion, it can be said that the intermediaries work in a proper manner to gain
financial benefits but also help in deriving necessary information for product development
purposes.
3.3 Discuss reasons for the growth of direct marketing
The applicability of mass marketing techniques has been drastically reduced in the current
context. Segmentation in marketing has made the target group smaller and their requirements
have become finer from the previous context (Schweidel and Knox, 2013). With proper direct
marketing techniques, addressing the needs of customers will be easier.
Apart from this, large amount of internal transaction data is available in the market, which
signifies the emergence of new approach methodologies. This is a sound reason behind success
of direct marketing methodologies.
The market has sophisticated analytical tools, which helps an organisation to understand the
demand of the customers. With the help of these direct market tools organizations can easily
fulfil the demands of the customer and gain sound amount of revenues.

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The process is cost efficient, compared to personal selling methods. Direct marketing techniques
like telemarketing have made the sales go beyond the estimated level, which is a positive side of
the newly developed marketing venture.
For an example, different telecommunication companies’ marketing technique can be taken into
consideration. They call their customers or individuals of the target group to sell their services to
gain profit from them.

Task 4
4.1 Evaluate three methods of promotion and the media used.
Advertising method- advertising about the product is regarded as the oldest and the most
successful method of promotion. It is one of the most effective measures to be taken into
consideration in this era. The method is still effective but traditional advertising methods need to
be developed in accordance with the demand of the market (Veit and Roth, 2013). In this
manner, a product will get proper publicity to be consumed by the customers. With the help of
different public medias, a company conducts advertisement of its products and services and gets
desired amount of public attraction.
Digital method- The digital method of marketing, like e-mail marketing, mobile marketing,
push messages etc. are efficient to promote a service. Small businesses can easily afford the
promotion method and the platform can be Facebook, Twitter, YouTube and many others where
traffic is high every time. The method is universally accepted but due to availability of several
advertisements blocking software, the publicity of different companies may not get public
attention.
Public relation- maintaining a good public relation is a very important thing for the small and
large companies. In this process, the companies will get close to the people and they will gain
ideas on what the people want. This is a long time venture and a company often has to spend
sound amount of money in order to stay enlisted among the customer-patronised companies’ list
(Veit and Roth, 2013). The public relationship maintaining companies promote their clients as
honest, important and successful bodies of the market. The customers get attracted to the
advertisement and they choose the company to be the service providing company.

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Comprehensive Report on Business Marketing Tools and Strategies

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