Marketing Principles Report: Marketing Strategies and Analysis

This report provides a comprehensive analysis of marketing principles, focusing on their application within The Co-operative Group. It begins by outlining the core elements of the marketing process, examining both the pros and cons of a marketing orientation. The report then delves into factors influencing marketing decisions, including micro and macro environmental factors such as employees, suppliers, competitors, political, economic, and socio-cultural aspects. A significant portion is dedicated to segmentation, targeting, and positioning strategies, using the food retail sector of The Co-operative Group as an example. The report explores segmentation criteria, target strategies, and how buying behavior affects marketing activities, including the impact of different buying behaviors like complex, habitual, and variety-seeking behavior. Further, the development of products to sustain competitive advantage, distribution strategies, pricing strategies, promotional activities, and additional elements of the extended marketing mix are discussed. Finally, the report concludes with a summary of the findings and recommendations, supported by relevant references.

Marketing Principles

TABLE OF CONTENTS
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Elements of marketing process..............................................................................................3
1.2 Pros and cons of marketing orientation.................................................................................4
TASK 2............................................................................................................................................5
2.1 Factors influencing marketing decisions...............................................................................5
2.2 Segmentation criteria.............................................................................................................6
2.3 Target strategy.......................................................................................................................7
2.4 Buying behaviour affects marketing activities......................................................................7
2.5 New positioning.....................................................................................................................8
Task 3...............................................................................................................................................9
3.1 Development of products to sustain competitive advantage.................................................9
3.2 Explain how distribution is arrange to provide customer convenience......................9
3.3 Explain how prices are set to reflect organization’s objectives and market
conditions.................................................................................................................................10
3.4 How promotional activity is integrated with organization’s objectives and market
conditions.................................................................................................................................11
3.5 Additional elements of extended marketing mix.................................................................11
Task 4............................................................................................................................................12
Conclusion....................................................................................................................................13
References......................................................................................................................................14
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INTRODUCTION
Customers are a significant part of the entire market structure. Their choices and
preferences influence business decisions regarding different aspects of a product or service.
Marketing is one such process that helps in anticipating and influencing buyer decisions
regarding purchase of a commodity (Stevens, R., Bressler and Silver, 2016). The Co-operative
Group is a multinational giant with approaches to customers in electronics, finances, legal
services, insurance, funeral care, etc. This report aims to provide knowledge regarding key
marketing principles like segmentation, targeting and positioning, marketing mix and their
different applications. Companies can develop efficient marketing strategies which will not only
communicate the best features of products and services but also attract more and more customers
when marketing principles are followed. This assessment will help in enhancing knowledge
regarding the same. Moreover, the entire perception towards a marketing strategy would change
when considering the facts and details of this report.
TASK 1
1.1 Elements of marketing process
Marketing process is a cycle which is activated every time the business organisation has
to develop a strategy for marketing products and services. The basic needs of buyers or
purchasers are identified and then a product is developed according to these needs. Following are
the basic elements of marketing process which needs to be followed by The Co-operative Group: Situational analysis: The business environment is divided into two types i.e. internal and
external. Situational analysis is based on the evaluation of both these environmental
factors. It also helps in understanding the barriers that are limiting the growth of company
(Stevens, R., Bressler and Silver, 2016).. Developing marketing strategy: Once the loop holes are identified and key strengths are
configured, a marketing strategy is planned and developed according to all possible
opportunities. Segmentation, targeting and positioning or STP is a significant tool
implied for the same. Designing marketing tactics: The principle tool which is used for designing marketing
tactics is marketing mix (Morot and Perrien, 2015). All important parameters on which
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effective decisions are to be made are included in this mix tool. For example, decisions
regarding product development, pricing decisions, distribution, etc. are made at this stage.
 Implementation and control: Prepared plan has to be implemented effectively and close
supervision must be instigated for understanding the changes that occur in targeted
business environment. If any flaws or defects are visualised then necessary changes must
be implemented (Stevens, R., Bressler and Silver, 2016)..
All these elements are essential to be considered before developing the marketing process
of The Cooperative Group. These will help in developing the marketing strategy of company
effectively.
1.2 Pros and cons of marketing orientation
Marketing is one such business operation that requires good amount of research work so
that resources implied in the execution of marketing strategy can be effectively utilised.
Orientation is considered as inclination or attitude of a particular organisation or person towards
some subject or issue (Morot and Perrien, 2015). Co-operative Group if develops marketing
orientation, then it can be stated that the company develops all its strategies and decisions
according the marketing aspects. For example: The Co-operative Group utilises maximum of its
resources and time in understanding and analysing current market trends for gathering more
customers then the company uses marketing orientation.
Pros:
 Competition can be backed down with this orientation because it involves high level of
branding.
 Co-operative Group can experience significant motivation in its internal environment
because new products have to be developed on a continuous basis. Current trends and changes in the demand of consumers or markets are managed by the
company when considering marketing orientation strategies.
Cons:
 The amount of monetary funds involved in marketing research is quite high. This implies
that the application cost of such strategies is a bit high (Morot and Perrien, 2015).
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 Technological developments that are taking place rapidly are critical to be compiled in
company structure on an everyday basis. It requires highly skilled labour and trainings for
managing such processes.
 Large scale changes in products/services can be costlier in the long run. Co-operative
Group can face certain challenges for inculcating these improvements on a continuous
basis (Percy, 2014).
TASK 2
2.1 Factors influencing marketing decisions
The business environment of Co-operative Group is divided into two types i.e. macro and
micro environments. There are various factors inclusive in these environments which influence
marketing decisions of the company. These are stated below:
Micro environmental factors Employees: Human resource or staff members who are responsible for implementation
part of every business strategy and activity are crucial part of internal environment. Their
motivation and willingness affect the productivity and profitability of the company. Suppliers: There are clients that provide raw materials to company which is further
utilised in production of commodities. The Co-operative Group must not be dominated
by demands of suppliers for avoiding loss of control over the freedom to purchase cheap
raw materials (Morot and Perrien, 2015). Competitors: Competition is a significant attribute which affects performance and
marketing at every stage. This continuous threats from competitors causes various
changes in the decisions and strategies of company. Be it new entries or rivals, in order to
maintain the current position in markets, Co-operative Group has to consider competitor
strategies.
Macro environmental factors Political: Marketing decisions of the company are largely affected by the state of political
stability and different reforms which regulate legal frameworks of organisation. For
example: Tax policies, labour laws, foreign investment laws, etc. Economical: Co-operative Group can face serious challenges in executing their
marketing decisions when considering economic growth and GDP rates of the operational
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country. Interest rates, inflation, purchasing power of consumers, etc. are some of the
crucial economic factors (Percy, 2014).
 Socio-cultural: Demographics like gender ratio, sex, population distribution, etc. are
some social factors which helps company to emphasise on customer demands and
choices. There can be barriers to purchase decisions when cultural beliefs or social
attributes are not according to the requirements of consumers.
2.2 Segmentation criteria
Marketing strategies can be designed with at-most accuracy and precision when
segmentation, targeting and positioning strategy is applied to the products and services which
need to be marketed (Percy, 2014). Since, The Co-operative Group has a diverse set of products
and services, here better insight regarding the segmentation strategy will be developed by
considering the food retail business. There are different kinds of products manufactured in this
section of the company. Segmentation process helps in separating individuals into different
sections according to various aspects like gender, psychology, behaviour, requirements, etc.
Considering the confectioneries and milk chocolates produced by Co-op Foods, it can be
segmented demographically and psycho-graphically as follows:
Segmentation Criteria Product Customer
Demographical (age) Confectioneries Small children
Psycho-graphically (personal
traits)
Milk chocolates Small children and young
adults
The above performed segmentation depicts that two products namely confectioneries and
milk chocolates produced by the company would be more popular amongst children and the
young adults (Morot and Perrien, 2015). Hence, the first product was demographically
segmented according to the age of potential customers while the second product was segmented
psycho-graphically based on the personal characteristics and traits. Milk chocolates are more
preferred amongst children and young adults because they have more tendency to invest in
chocolates rather than sweets. On the other hand, colourful confectioneries become an attraction
point for kids and small children naturally.
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2.3 Target strategy
Targeting strategy is one of the important strategy of business units. One the firm set its
segmentation then after it looks upon the target audience to whom organization wants to target.
Generally, there are different types of target strategies such as differentiated, undifferentiated and
concentrated strategies.
Undifferentiated target strategies are adopted by big organizations those which offer
single product to whole market. They concentrate on single items rather than focusing on large
number of items. Differentiated strategy is another type of targeting strategy in which entities
offers different products to different segment people. In this, firm offers variety of products as
per the needs and wants of consumers (Percy, 2014). Concentrated marketing is another type of
strategy in which corporation mainly focus on the particular market segment.
The Co-operative Group is concentrating on the differentiated target strategy in which it
first identifies the needs of users and accordingly it offers them products or services. With the
help of this strategy consumers of cited firm feel satisfy with the brand and they be loyal towards
the organization. The Co-operative Group offers various milk products, as per the requirement of
buyers. With the help of this strategy cited firm is able to attract number of customers towards
the brand. It has variety of food products of different ranges, that support the organization in
satisfying needs of users and making them loyal towards company (Khan and Ward, 2016).
2.4 Buying behaviour affects marketing activities
Overall growth of the organization is much more depended upon the buying behaviour of
customers. They have power to influence the business activities and decisions. All users have
different needs and wants, it is very difficult for The Co-operative Group to understand
requirements of different buyers. There are many factors that affect the buying decision of
individual such as age, income, social, cultural etc. For instance, youngers like to invest in
quality products whereas old persons like to buy cheaper items. Same as persons those who are
having good income they invest much amount in purchasing but on other hand those who have
limited funds they try to save their money. Cultural is the biggest factor that affect the buying
behaviour of customers (Nowak and et.al, 2015). The Co-operative Group has to offer the
products to the consumers as per their cultural believes, otherwise people will not purchase
goods. In addition to this, social element is another component that affect buying decision of
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individual, references group, relatives, society members etc. influence their decisions. Their
behaviour impact on the marketing strategy of the cited firm. There are generally several types of
buying behaviour in the market:
 Complex behaviour: These are such individuals those who want to buy any precious or
costly product. In such situation, they take feedback before buying the items from the
experts or other persons (Katz, 2016). In such type of case The Co-operative Group has
to adopt such marketing strategy which can help in gaining their trust so that they can
make their mind to purchase the final products.
 Habitual buying behaviour: These are such consumers those who are habitual towards
the product. As people buy milk products generally but there are many competitors of te
organization, so cited firm has to adopt such marketing activity that can attract them
towards own brand (Piercy, 2014).
 Variety seeking behaviour: In such situation, they have many options to buy the same
products In such situation The Co-operative Group will have to give them attractive
offers so that they spend their money in this company. In the absence of effective
marketing strategies people will turn to other brand that will give loss to the organization.
2.5 New positioning
Completion is very high to survive in such environment for longer duration organizations
have to adopt effective positioning strategy that can support in sustaining in the corporate market
and can give the brand competitive advantage. The main objective of The Co-operative Group is
to increase sales volume and to provide satisfactory service to clients. For that it will have to
target the right person at right time (Armstrong and et.al, 2014).
Cited firm can use advertisement for positioning and can take support of social media
marketing. In the technological era, most of the people use these sites and they read
advertisement on these websites. The Co-operative Group can promote through giving detail
about benefits of this items such as low price, quality products, creative idea etc. In addition to
this, cited firm can offer them online buying option and home delivery facility. It would attract
most of the people (Morse, Babcock and Murthy, 2014). In the busy life, no one gets time to
purchase from shops, people like to shop from online sites because they can get attractive offers
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and they will get fast home delivery. Thus, by giving this facility organization can increase its
sales volume and can make customers loyal towards the brand.
Alone with this, The Co-operative Group is offering replacement of bad products. That is
the unique feature and make the brand differed from other competitors. That supports the entity
in gaining trust of consumers and making them loyal towards the brand (Gürbüz, Albayrak and
Alaybeyoğlu, 2014). Use of attractive slogans can also gain the attention of users. Effective
positioning may give support and growth to the corporations and can enhance its profitability to
great extent.
TASK 3
3.1 Development of products to sustain competitive advantage
Banking industry is now a days fast growing sector, that contributes well in the economic
development of nation. In the UK, there are many financial institutes they offer same products to
the depositors. To gaining competitive advantage it is necessary for the Banks like HSBC to
develop its products in effective manner so that consumers get attracted towards the brand
(Westwood, 2016). Development of products attract maximum consumers and help in increasing
revenues of the firm.
Before making any modification in the existing product HSBC has to understand the
needs of customers of the bank. It should generate idea, then has to do screening, testing and then
it should develop a final product. In the modern banking industry people want lower interest
rates loan products so that they can expand their business and can fulfil their monitory needs. So,
HSBC needs to look upon this factor and accordingly its has to screening the idea (Boone and
Kurtz, 2013). By this way, it will be able to satisfy people and it will give competitive advantage
to the organization.
3.2 Explain how distribution is arrange to provide customer convenience
The Co-operative Group needs to focus on customer convenience on higher extent as
then only, the business will be able to meet changing needs of the customers. Currently, all the
retail organizations in UK uses online selling of goods as this is the convenient and cheapest
method of product distribution (Brace, 2006). Thus, The Co-operative Group can also select
online source since it is highly affordable and easy to reach. Distribution plays crucial role in
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influencing the customers; hence The Co-operative Group should not involve large number of
mediators as that might hamper the effectiveness of product selling (Buckley, 2002).
Thus, in the present case, The Co-operative Group is required to emphasize on Selective
distribution strategy which is a type of distribution that lies between intensive and exclusive
distribution. It usually engages all the intermediaries; but lesser than all the mediators who carry
the company’s products (Caemmerer, 2009). Henceforth, as per the channel, The Co-operative
Group will be able to amend the level of production and sales both. This is also crucial for
meeting all types of needs of customers according to the time when they require it. Therefore, it
is evident that The Co-operative Group needs to involve all the respective intermediaries so that
customers can purchase products from any of the sources which is convenient to them (Dibb and
Simkin, 2013).
3.3 Explain how prices are set to reflect organization’s objectives and market conditions
Price is the major element that changes the mind-set of consumers and that also
influences customers to purchase the products on higher extent (Doole and Lowe, 2008). Thus,
price is given much importance while introducing any new product and service; therefore The
Co-operative Group needs to consider such aspect into account. The Co-operative Group needs
to emphasize on price penetration strategy where the price of confectionary products is initially
set low to rapidly reach the market share; however after acquiring a limited market share,
company can enhance the level of prices (Ferrell and Hartline, 2010).
At the same time, for milk products, The Co-operative Group can select price skimming
strategy in which a marketer can set relatively high price at initial level so that consumers can
buy it on higher extent (Fifield, 2012). This can be adopted as a temporal version of price
discrimination in which The Co-operative Group can manage all its business aspects in
prominent manner. Through this, The Co-operative Group will be able to enhance the level of
demand for milk based chocolate (Ham, 2008). This element of marketing mix will play a major
role in changing the demand of the product; hence the opportunities of profits and success can be
enhanced accordingly. Thus, from the discussion it is clear that prices have the potential to reach
towards the aim and objectives of The Co-operative Group.
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3.4 How promotional activity is integrated with organization’s objectives and market
conditions
Promotional activity is highly integrated with the elements of marketing mix and that also
enhances in selling the products on greater extent (Handlechner, 2008). Through proper
marketing mix, organization can influence the purchasing decisions of its existing customers and
further can attract potential customers. The integration of promotional mix can be seen in the
below section:
 Selling of milk based chocolate through social media depicts integration with product and
promotional element (Heding and et. al., 2008).
 Confectionary items should be promoted greatly through adding several discounts and
schemes so that large number of customers can purchase it. Hence, availability of
discounts and schemes shows the integration between product, price and promotional
aspects.
 The Co-operative Group must also make appropriate use of place mix through which
right kind of product can be sold to the consumers’ right time when required (Hermann,
2009). This is also useful in showcasing the concern of The Co-operative Group towards
consumer satisfaction.
3.5 Additional elements of extended marketing mix
Elements Milk chocolate Confectionary products
Product Milk chocolate will be made Bakery items will be made
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with condensed milk which is
rich in calcium.
available to the end users
(Doole and Lowe, 2008).
Price Price skimming strategy will
be used for the purpose of
enhancing demand (Kemmer
and Boden, 2012).
Price penetration strategy will
be adopted so that targeted
consumers can buy it.
Place Through Retail stores, the
product will be delivered.
Retail shops and supermarkets
Promotion Social media will be used as all
the youngsters are available on
such source (Brace, 2006).
Promotional activities will be
conducted cartoon channels
People It is essential for The Co-
operative Group to align proper
roles and responsibilities to the
staff members so that they can
manage their duties in service
delivery procedure.
People working in The Co-
operative Group must have the
knowledge to make bakery
products so that customer
requirements can be met
(Caemmerer, 2009).
Process In order to make milk
chocolate, it is essential for
The Co-operative Group to
identify which process needs to
be used for proper shaping.
The process of managing each
and every aspect of
confectionary items should be
well known to the business
parties (Heding and et. al.,
2008).
Physical evidence Intangible as well as several
intangible benefits should be
given to the customers in
different areas (Ferrell and
Hartline, 2010).
Confectionary items needs to
be more quality associated so
that it can enhance demand
from the customers.
TASK 4
Covered in PPT
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CONCLUSION
Concluding the entire research study, it can be said that at the time of bringing any new
product or service, it is crucial for the business entity to focus on market research procedure so
that associated challenges and issues can be minimized accordingly. At the same time, it can also
be said that while entering into global market, it is vital for Vodafone to ascertain the level of
competition so that business can operate all its practices in the best possible manner. Apart from
that, it can also be said that marketing objectives should be developed in such a manner so that it
can direct the business entity to carry out all the practices effectually.
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