Principles of Marketing: Gym Group's Strategies and Effectiveness

This report provides an analysis of The Gym Group's marketing strategies, focusing on the marketing mix elements (product, price, place, promotion, people, process, and physical evidence) and their application within the company. It examines the strategic decisions made by The Gym Group, such as effective communication, transparency, adaptability, sharing success stories, and enhancing user experience, relating them to relevant marketing theories like STP (Segmentation, Targeting, Positioning) and the Ansoff Matrix. The report evaluates the effectiveness of these marketing efforts in enhancing brand image, customer loyalty, and market share, highlighting the company's commitment to providing affordable fitness services and adapting to market changes. The Gym Group's use of digital platforms, discount codes, and certified trainers are also discussed as key components of their successful marketing approach.

Principles and
Practices of Marketing

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Marketing mix elements.........................................................................................................3
Reflects strategic decisions and relevant taught theories in its marketing efforts..................5
Evaluate the effectiveness of its marketing efforts.................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Books and Journals...............................................................................................................12

INTRODUCTION
Marketing is one of the important function of management. Each and every company needs
effective marketing in order to enhance the sales of the company. There is need of following the
marketing principles as they help the company to grow the business. The marketing management
plays a key role in the enhancing the sales of the business organisation (Palmatier and Crecelius,
2019). This report is based on Gym Group. The company was founded by John Treharne in
2007. It provides 24*7 services in UK. The owner had long and successful history in the gym
business. The first gym was opened in Hounslow 2008, after three years gym group showed
great growth with receiving awards and recognition in UK market. In this report there is
discussion related to marketing mix of the company as it helps them enhance marketing strategy.
The strategic decisions and important theories in marketing are also mentioned in the report. The
effectiveness of marketing efforts done by the company is also mentioned in the report.
MAIN BODY
Marketing mix elements
Marketing mix refers to the tactics that help to promote the brand. It is a combination of
important elements that makes the business enterprise successful. This is a tool that help brands
to estimate what elements should be used to reach marketing goals and objectives. By carefully
combining the marketing strategies business can ensure they have visible demand in product or
service (Hopkins and et.al., 2020). The business organisation must take proper care of the
combination of product, price, place, promotion, people, process and physical evidence. All these
are necessary for the growth of the company and to set effective brand image. The use of all the
elements of marketing mix is discussed below:
Product – It refers to the object which business sell to their customers. It can be physical
product or a service in which business deals. Product refers to the services and items the business
is providing to target audience. The product of company depends on what the company do and
on its main operations. In relation to The Gym group, the product is the service the group is
providing in more than 200 locations in UK with gyms loads of high specs kit, timetable packed
with free exercise classes and team of skilled personal trainers. The company is working in
service industry and since last years they are working to enhance their quality of services that are
provided to the customers.

Price – The strategy of pricing should always match the quality and value of products which
consumer easily get ready to pay. Price includes overhead costs, manufacturing costs, marketing
costs and discounts. Price refers to how much service the service or product will cost. The price
factors depend on many reasons like on competitors, demand, cost to produce and consumer
preference (Bonaparte, 2019). In conditions of The Gym group it has 24/7 gym providing top
quality gyms and expert advice at affordable rates. To compete in the market, they sometimes
give discounts on their products also which assist in sales.
Place – This refers where you sell your products and services. Place always do not refer to
the physical location, many firms operate through online websites, social media, telemarketing
and catalogue. Place plays important role in marketing of product and service that's why finding
best place is very crucial for any firm. Place also refers to from where the product or service is
being provided. The components focused while choosing a place through what channels
customer will find the product or service and from where it will be sold. In case of The Gym
group, the company started its operations from London UK from 2007. It has now around 160
gyms with more than 6,60,000 members across all UK, branches dispersed in places like
Birmingham, Kings heath, Beverly etc. THE GYM group has a large chain present of fitness
centres all over UK. It helps them to reach more customers and serve their needs and wants
effectively. The GYM group provides digital services to join and provide membership to the
customers which is a type of promotion digitally.
Promotion: Promotion refers to the planned advertising to reach company target market. A
company might use campaign and other methods such as social media, advertisement, hoarding
to reach more customers. The promotion components are used to establish a good promotion are
the promotional message sent to target audience, medium through the promotional message is
sent (DeLon and Vander Schee, 2020). The Gym group is actively participated in its promotional
strategies to get recognized. The company use discount codes for students to target more young
customers. The business is actively present in Facebook, Instagram and twitter to promote the
brand.
People - It refers to the persons who are involved in managing, marketing, designing and
includes all the members of staff. The Gym Group invest huge amount on its human resource
because manual operations are carried out by them. They launched training and development
programs for their employees. They also provide life insurance, health insurance and various

other policies which retain their employees (Kotler and et.al., 2019). By taking proper care of
the employees a company is able to enhance their business effectively. The employees are the
important part who carry on the work properly. Since last 3 years, the Gym group only hire
certified trainers who help to satisfy their customers better than before.
The company works on positioning their brand effectively. The company has transformed
their website recently and that has enhanced their memberships. There is need of work according
to the situation and bring innovation in order to keep the customers engaged in the market. They
have promised to provide low-cost fitness brand. This helped the brand to capture good market
share. By working on the quality of services the company is ready to beat all the competition that
is present in the market. The best strategy used by the brand makes them successful and create
effective picture of brand in the mind of customers.
Reflects strategic decisions and relevant taught theories in its marketing efforts.
Strategic decisions are the decisions that are concerned with whole environment in which
business operates. It includes use of all the resources and people so that the success of company
is attained. The following are the strategic decisions taken by The Gym group are as follows:
Effective communication: In order to stay effective in the market and enhance their
presence in the market. The use of better communication channels helps The Gym group to
connect with the customers. The use of best marketing strategy also requires good
communication (Swanson and Davis, 2020). Effective communication by The Gym Group helps
to maintain effective relations with the customers.
Transparency is essential: The Gym group believes that there is requirement of honesty
in transparency in order to relate with the customers. It is seen that after covid-19 there are
certain problems being observed by the customers. The gym group provide them transparent
information and build trust so that the customers are loyal for the organisation. The keep on
posting regular post on social media that also helps them to build loyalty of the customers and
enhance marketing strategy.
Adaptable and flexible: This is one of the major reason of success being observed in gym
group. There is so much risk that the businesses have to overcome. By adopting new technology
and giving better solution to the clients the gym group is able to carry on their business
operations in effective manner (Morgan and et.al., 2019). They work on keeping your customers
healthy and safe in every situation and this helps them to create good brand image in the minds.

Share Reviews and Success Stories: There is need of sharing the success stories with
the customers in fitness industry. The gym group shares their review of customers that help to
attract more customers. It makes customers relate with each other and the story makes them
emotional. This is strategy help the Gym group to their customer base and create good emotional
relations with them. The customers are also able to trust the company by getting successful
stories of others.
Effective user experience: The customers are sensitive and needs to get best services. By
enhancing their customers journey Gym group is able to enhance the users experience. User
friendly website of the company helps them to satisfy their needs and wants. The use of better
digital presence will enhance the trust of the customers.
All the strategic decisions taken by the Gym group helps them to carry on their activities
properly. The use of right tools and techniques are necessary for the company and their success.
There is need of connecting with the customers as they will help them to enhance the brand
image of the business.
The important marketing theories are discussed below:
STP
Segmentation: It is the process of dividing the target market into specified groups. There
is need of customers that vary from one another. Each and every group required better products
to satisfy their needs. With this organisation must identify the target group of customers and then
focus on their needs and wants (Bala and Verma, 2018). Segmentation helps to communicate the
message effectively with the customers. It also helps to attain competitive edge and determine
the best customers that will enhance the sales of the company there are different segmentation
such as demographic, behavioural, psychographic, geographic, etc. The Gym group understands
that there is need of knowing about the needs and wants of the right customers set. The
characteristics of the customers are different from one another.
Targeting: It can be defined as the process of selecting best group of customers. The
Gym group targets the customers that are health conscious, sports centred people. The analyse
the requirement of the customers on regular basis in order to satisfy them effectively. By
selecting best set of customers they are able to retain them in the organisation.
Positioning: It is one of the important strategy that helps to make the brand successful. It
is the strategy of creating effective brand image in the mind of the customers. By creating good

brand image in the mind of customers it will have direct impact on their sales. The Gym group
keep on advertising the brand with new and innovative ideas. This keeps the customers
remember their name and brand (Kumar, Paul and Unnithan, 2020). They also worked on
positioning their presence online so that they are able to capture more customers. By providing
affordable plans to the clients they are able to enhance their presence in market.
Ansoff matrix
This matrix was developed by H. Igor Ansoff, published in Harvard Business Review in
1957. This tool helps marketers to analyse the market environment for future growths and
opportunities. This matrix also known as market / product expansion in which various options
available like entering new markets or developing new products. The detailed Ansoff of Gym
group can be described as:
Market penetration strategy – This is the first and foremost strategy which is safest
from all other strategies. In this strategy, firms use their existing products in existing market to
increase their market share (Deepak and Jeyakumar, 2019). This can be done by acquire more
customers, by decreasing prices, by promoting and by using different techniques of marketing. In
case of The Gym group, they use loyalty points to increase their market share which help them in
gaining loyal customers. They also give special offers to their customers which results in
increase of sales. The Gym group makes sure that their quality of services justifies their prices
which customers get agree to pay easily.
Product development strategy – This is the second strategy and slightly riskier than
first one. In this strategy, firms offer new products in its existing market. This can be done by
producing new variants or different segment of same products or by expanding their product
lines. Firms can do research and development which helps them in understanding market
situations. Firms can upgrade their technologies or they can take rights from other businesses to
sell their products under their brand name. The Gym group have added many services that are
now provided by professionals under their brand name. This help in generating more revenues in
comparison to earlier.
Market development strategy – This is the third strategy and it is equally risky as comparison
to product development strategy. In this strategy, firms offer their existing products or services in
new market (Hopkins and et.al., 2021). Firms can expand their reach within the domestic market
or in the international market as well. They can acquire the potential customers in new

geographical areas. The Gym group started its operations in UK and has the opportunity to
expand their operations in different markets.
Diversification strategy – This is the last strategy of Ansoff which is riskier than other
strategies. In this, firms offer new products and services in the new markets. This strategy mainly
used by new firms or start-ups. This is slightly risky because it involves in depth research of
products and markets.
Evaluate the effectiveness of its marketing efforts.
Marketing can be defined as the process of persuading the customers towards the brand. It
helps to enhance the sales of the company. By using the principles of marketing and effective
theories a company's able to achieve goals and objectives. The marketing manager of the
company must have effective communication skills so that they are able to convince the
customers (Hanson and Kalyanam, 2020). The key role is played by the marketing department of
the company as they are supporter for the sales department in the business organisation. All the
marketing efforts done must be checked on regular basis so that the effectiveness can be
evaluated. There is proper analysis done by the Gym group as it helps to know the performance
on continuous basis. They are able to take necessary actions for improvement by using the
following parameters to check their performance. They are mentioned below:
Changes in sales: The end goal of marketing department is to enhance the sales and
profitability of the company. The Gym group check their progress by reviewing their changes in
sales figures. This helps them to track their long term progress and monitor the delays. The
increase in sales make them more confident and motivated towards the work.
Return on investment: It is one of the major concern that comes on the marketing
department of the company. Every company trust the marketing department to enhance the return
on investment (Grewal and et.al., 2020). All the work is done by the marketing department in
such a manner that they are able to enhance the overall profitability on the money that is
invested. The same is being used by the gym group to check their progress. Keep on checking
the return on the money invested that helps them to know how much they are marketing
department is really working.
Monitor progress: The marketing department of the company sets business objectives. It
is a good way to monitor the progress of these strategies formulated by the business. The gym
group regularly conducts evaluation of their goals so that they are able to know how much near

they have gone. It helps them to monitor the progress of the marketing department and know
about their effectiveness or effectiveness while achieving the goals and objectives. By regularly
tracking the performance there able to take corrective measures on the same time that will help
them to attain success.
Customer response and reactions: It is also another way to check the effectiveness of the
marketing done by a company. The response of customers can be checked in various ways but
help the complete to know about their progress. Online surveys done by Jim group and customer
service feedback taken helps the update to know about the response from the customers (Appel
and et.al., 2020). The good and positive feedback from the customers motivate the gym group to
perform better. On the other side the negative feedback is taken effectively and the actions that
will help to remove the challenge are taken instantly. It is necessary to keep track on the response
and reaction of the customers in order to provide quality service to them and make them loyal
towards the business.
Comparison with competitors: The actions and strategies of the company competitors
help to know about the success or failure. if the actions taken by the company of successful than
the competitors and the sale is rising better than the marketing is effective. On the other hand, if
the actions taken by competitors are better than the company then the marketing department is
not working effectively and there is need of improvement (Mothersbaugh and et.al., 2020). It is
analysed that the Gym group regularly keep on checking the actions of competitors and are able
to attend advantage over other competitors. All the issues that are faced by competitors must also
be analysed so that the company is able to take preventive measures before wards and attain
success.
All these techniques help the company to check their progress. The use of key
performance indicators makes them successful. The corrective measures by the company help
them to enhance their sales.

CONCLUSION
From the above report, it is concluded that marketing plays a vital role in success of a
company. The main aim of marketing department is to enhance awareness regarding the brand
and attract the customers towards the company. The marketing department works
complementary with the sales department in order to get higher revenues and profitability. In this
report, there is discussion related to the marketing mix that helps the company to reach the
customers successfully and make them highly satisfied. Strategic decisions are necessary for the
growth of company and the one taken by company are mentioned in the report. Afterwards, the
theories of marketing that are necessary for a company are also evaluated. In the end there is
discussion related to the techniques that help to evaluate the effectiveness of marketing.

REFERENCES
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