Marketing Principles Report: Environmental Analysis and Strategies

This report provides a comprehensive overview of marketing principles, utilizing case studies of Volkswagen and Tesco to illustrate key concepts. It begins with an introduction to the marketing process, emphasizing elements like market investigation and target market identification. The report then delves into the benefits and costs of marketing orientation, followed by an analysis of macro and micro environmental factors influencing marketing decisions, with a focus on Tesco. It explores market segmentation strategies, including demographic and behavioral segmentation, and discusses targeting strategies such as undifferentiated, differentiated, and concentrated approaches. The report further examines how buyer behavior affects marketing activities, considering social, cultural, and personal factors. It concludes by analyzing new product positioning strategies, including price, channel, and product differentiation. The report aims to provide a thorough understanding of marketing concepts and their practical application in real-world business scenarios.

MARKETING PRINCIPLES

Table of Contents
INTRODUCTION..............................................................................................................1
TASK 1.............................................................................................................................1
1.1 Various elements of marketing process.............................................................1
1.2 Benefits and cost of marketing orientation.........................................................2
TASK 2.............................................................................................................................2
2.1 Macro and micro environmental factors that influence marketing decisions......2
2.2 Propose segmentation which is used for products in different markets.............4
2.3 Targeting strategy for selected product and service..........................................4
2.4 Buyer behaviour affect to marketing activities...................................................5
2.5 New positioning for product or services.............................................................6
TASK 3.............................................................................................................................7
3.1 How product develops for sustain competitive advantages...............................7
3.2 How distribution arrange for customer convenience..........................................7
3.3 How prices are set which reflect to business objectives....................................8
3.4 How promotional activity is integrated...............................................................9
3.5 Additional elements of extended marketing mix.................................................9
TASK 4........................................................................................................................... 11
CONCLUSION............................................................................................................... 22
REFERENCES...............................................................................................................23

INTRODUCTION
Marketing principles considered process that includes identification of customer
wants, desire and requirement. There are several key elements included that assist to
provide best services to various customers (Burchell, Rettie and Patel, 2013). In this
context, present report is based on different case scenario of marketing of businesses
through they can achieve their goals and target to satisfy customers. Therefore,
different types of organisations are taken for particular case scenario. In order to focus
on all enterprises, report covers elements of marketing process that helpful to satisfy
customers. Furthermore, it includes macro and micro environmental factors that
influence to marketing decisions. Moreover, it explains that how products are developed
that assist to sustain competitive advantages.
TASK 1
1.1 Various elements of marketing process
Marketing is the social process in which individual and group of persons obtain
their needs and wants as per their requirement (Carrie, Kilkolly-Proffit and Agee, 2017).
In Volkswagen, various elements are included in marketing process which are as
follows:
Investigation of environment and market: Before established any product,
every business needs to concentrate on market and strategies in order to sustain for
long term objectives. Investigation of environment and market are main elements of
Volkswagen to earn more profits and revenue (Thomas, Lewis and Westberg, 2015).
Identification target market: Identification of target market assist to introduce
right product at right place with right price. Therefore, Volkswagen needs to assess and
investigate market where they can easily attract more people.
Setting objectives of marketing: In order to setting objectives of marketing,
organisation requires high cost and more time. Marketing objectives of the chosen
business demonstrate enhancement of profit for long term which also enhance brand
value of company (Mata and Quesada, 2014). Therefore, it can be set as per business
value and profits.
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Deals with various elements of marketing mix: Marketing mix elements are
assist to deal with different factors which establish through products. There are various
elements are included in marketing mix of Volkswagen such as product, price, place,
promotion, people, physical evidence and process. These all elements are assist to
earn huge profits in the firm (Patel and Arya, 2017).
1.2 Benefits and cost of marketing orientation
In respect to make effective results, marketing orientation is frame model that
focuses to deliver product design as per customer needs and requirement. There are
various benefits and cost to marketing orientation for Volkswagen that are as follows:
Customer satisfaction: Organisation benefit includes satisfaction of customer
because if they are satisfied from products and services of Volkswagen, company can
produce more. Hence, the chosen enterprise need to satisfy each customer requirement
for their development (Domegan, Collins and Hughes, 2013).
Desire quality: In respect to get desire quality and services, the chosen
enterprise has to assess each product quality and features. This is because, if they
remain same desire quality of products, customers will easily attract towards the
business.
Service and customer care: With the help of effective service quality, clients are
satisfied at Volkswagen. This is because, behaviour of sales person assists to create
good image of the firm on in front of customers (Evans, Pattanayak and Bihm, 2014).
Research of market: In order to conduct market research, the cited firm need to
assess product demand. Hereafter, they have to huge cost and investment to analyse
market.
TASK 2
2.1 Macro and micro environmental factors that influence marketing decisions
In order to conduct environment analysis, there are certain elements included in
Tesco such as macro and micro factors. These elements influence to the business in
the following terms:
Macro environment factors
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These factors are not very close to the business but create high impact on it. In
addition to this, they are not controllable by the firm (Strauss, 2016). Hence, it creates
threat and opportunity in the organisation. It includes following elements: Political factors: Political factors are created high impact on the business
performances in order to lead in obesity and enhance in cholesterol. Therefore,
government of UK influence Tesco to manufacture hygiene products. Economic factors: Economic factors are most important which assist to buy raw
material from domestic and international market as well (Dietrich, Rundle-Thiele
and Connor, 2015). In this way, tax and exchange rates are considers in the
different market. As results, it influences to Tesco Operations and functions. Social factors: Customers have continuous change their lifestyle, preference and
taste. As results, when the chosen firm is operating at international market, they
have to concentrate on market needs and customer demand in term of trends,
preference and taste (von der Heidt, 2015). Technological factors: Technology factors assist to improve working culture and
management that assist to produce productivity at workplace. It is helpful to
Tesco for reducing waste from the workplace. Legal factors: Regulations are also major concern that needed to produce
effective results (French and Gordon, 2015). In the cited firm, employment law,
taxes and corporate law are followed to make effective results in market.
 Environmental factors: Tesco is facing many issues to packaging the products.
This is because, it packed in polystyrene which harm to environment. Thus, they
have to use paper and ozone-friendly things that protect the environment (Skoog,
Holler and Crouch, 2017).
Micro environmental factors
These factors are very close the business environment that can be controllable
by the enterprise. It assists to boost success of organisation in effective manner. They
are as follows: Customers: Customers are key focusing elements that assist to enhance profit of
the firm (Berkowitz, 2016). Through providing excellent products and services,
Tesco can easily maintain high base of customer at workplace.
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 Employees: Employees are another important elements that provide product and
services to ultimate customer. They have full knowledge and skilled to make
successful operations in business environment (Kleinaltenkamp, Plinke and
Geiger, 2015).
 Suppliers: Suppliers are another important factor to supply raw-material within
the enterprise. Hence, Tesco need to maintains their relations with each supplier
so that they can achieve effective quality raw material to produce more profit at
low cost (Chaffey, Smith and Smith, 2013).
2.2 Propose segmentation which is used for products in different markets
Market segmentation is considering as identification the customer group,
individual and other people as per the needs and demand. There are three types of
segmentation but in Tesco only two aspects taken for attract customers.
Demographic segmentation
As per this segmentation, the business divides their products and services on the
basis of population (Varley and Rafiq, 2014). Tesco provides their products and
services in different areas of domestic and international market. There are certain
variables included in demographic segmentation such as age, gender, income and
occupation, etc. In this way, Tesco determines clothing for children, women and men.
Behavioural segmentation
In order to purchase products from Tesco, each person possess different
perception in term of buying behaviour, usage and pattern for decision-making. Hence,
Tesco need to understand behavioural pattern of each customer to enhance profits with
the time. This is because, behavioural pattern of each person life is differing so that it is
essential to understand for attaining results (Lefebvre, 2013). In addition to this, there
are various strategies exist in market that helpful to attract people such as free coupons,
discount rate and combo packs, etc. These will assist to attract more and more
customers to enhance profits in chosen firm.
2.3 Targeting strategy for selected product and service
Targeting strategy includes segmenting the market and select right segment in
appropriate way. As results, it assists to enhance profits which will be offers in different
segments (Westwood, 2016). Mainly Tesco demonstrate target market with assessment
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of needs and demand of wooden products to make. With thinking of range of products
and services, the chosen business adopts target strategy which explains here under:
Undifferentiated targeting strategy: This targeting strategy mainly focuses on
entire target market instead of each segment. In this strategy involves single marketing
mix that assist to reach for maximum customer. Success of the company is depending
on resources and skills to reach towards each client. It is convenience for enhance
single product marketing (Beierlein, Schneeberger and Osburn, 2013).
Differentiated targeting strategy: This targeting strategy has aim to make
different market segment with specific marketing mix. In this way, product will be design
in particular place that assist to meet segment and needs in each product mix such as
product, place, price and promotion (Wearing and Schweinsberg, 2016).
Concentrated targeting strategy: This strategy assists to target on single
market segment through concentrate on single marketing mix. This assist to focuses on
resources of Tesco to meet particular person needs with understand their demand.
2.4 Buyer behaviour affect to marketing activities
Every customer has different behaviour in term of selection, purchase and
consumption of goods and services. This is because, different elements satisfy them
effectively through (Evans, Pattanayak and Bihm, 2014). Thus, the organisation need
to analysis buying behaviour of people. There are several factors exist in market that
affect to buying behaviour of customer. They are as follows:
Social factors
It creates strong impact on buyer behaviour because many customers take
references from family, relatives and many other people. Therefore, social factors
influence to references group, family and peers, etc. (Domegan, Collins and Hughes,
2013). It is obtaining to inform the person towards attitude and behaviour so that Tesco
continuous trying to identify each customer behaviour towards products and services.
Cultural factors
Sometimes buying behaviour of customers also influences from culture aspects.
Influence of culture on buying behaviour varies due to variation in country and religious.
Thus, tangible items such as food products can be express within the business
environment (Mata and Quesada, 2014).
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Personal factors
Personal factors are also influences to buying behaviour such as lifestyle,
economic situation, age and personality, etc. It creates impact on buying behaviour due
to changes in customer purchasing power. Hence, it need to be developed in
appropriate way for enhance selling of products at every stage.
2.5 New positioning for product or services
In order to make new positioning for product and services, Tesco need to place
brand image of their business in customer mind (Burchell Rettie and Patel, 2013). There
are certain positioning strategies follows within the organisation as here under:
Price differentiation
In order to make position in customer mind, Tesco need to provides various
benefits and discount to get more people. In this way, customers are purchasing more
that create benefits within the business environment (Evans, Pattanayak and Bihm,
2014). For instance, Tesco can provide buy one get one, in food items which assists to
lead in price differentiation.
Channel differentiation
Tesco has large area in which they are operates effectively. They are
determining proper distribution channel and also convenience as per customer. Hence,
they can easily reach towards large target market (Mata and Quesada, 2014). Tesco
deals with more than 200 branches in all over the world in term of offline and online
products.
Product differentiation
Tesco need to implement large variety of products to get more people within the
business environment. In this aspect, the organisation can attract more people through
providing variety of products in hygienic manner. As results, sustainability of customer
can be made at workplace through contain variety of products (Carrie, Kilkolly-Proffit
and Agee, 2017).
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TASK 3
3.1 How product develops for sustain competitive advantages
In order to develop products for sustain competitive advantages, it is very
important to maintain business outcomes and improvement continuously. It makes
business attractive against competition which differs in various situations (Thomas,
Lewis and Westberg, 2015). It enhances brand image of Bank of England to make
strong position. There are certain ways in which the cited firm will sustain competitive
advantages which are as follows:
Lower cost advantages: This element determines opportunities to Bank of
England to reduce their services cost. For example, providing loan to commercial bank
at low interest rate. It assists to make development of product in new places to attract
various customers (Evans, Pattanayak and Bihm, 2014). Hence, they are able to
operate new functions and operations for achieve competitive advantages.
Product differentiation: In order to develop product or services, Bank of
England need to focus on product differentiation. In this way, they can provide
differentiation products with effective quality and feature (Beierlein, Schneeberger and
Osburn, 2013)s. As results, they are able to accomplish competitive advantages in UK.
3.2 How distribution arrange for customer convenience
In order to distribute products in international market, there are various channels
exist through company can focus on products for adequate quality and take decisions
as well (Domegan, Collins and Hughes, 2013). There are several ways in which Bank of
England can provides products to customer. With the help of following distribution
channel, the organisation can provide products or services to their customer: Intensive distribution: In this type of distribution channel, Bank of England need
to establish different outlets in all over the country and outside nation as well.
Therefore, they can easily access various customer within the business
environment. With the help of identifying need of each commercial bank, the
chosen bank will grow more (Carrie, Kilkolly-Proffit and Agee, 2017). Selective distribution: In selective distribution, Bank of England need to know
about services which they are offers. Through establish few new outlets, they will
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understand customer and their requirement towards particular services. There
risk is also identified in various nations for assess advantages and disadvantages
as well. Through choosing appropriate outlet and various alternatives, it will be
develop within the business environment (Thomas, Lewis and Westberg, 2015).
 Exclusive distribution: In exclusive distribution channel, strategy can be used
to establish product or services in geographic boundaries. When brand is
develop in one or two outlets, exclusive distribution is take place. It makes
reputable brand image of the organisation in front of customers (Evans,
Pattanayak and Bihm, 2014).
From the above different distribution strategies, Bank of England can use
exclusive distribution strategy. Therefore, only one or two outlets are develops within
the market.
3.3 How prices are set which reflect to business objectives
Pricing is set for attracting customer towards the organisation. Generally,
customers have focus on effective quality product and services that helps to produce
effective results (Domegan, Collins and Hughes, 2013). There are several pricing
strategies can be used by Bank of England are as follows: Premium pricing strategy: In this type of pricing strategy, Bank of England can
set high price for their services than the other banking institutions. In this way,
unique things and services can be provides in new market for enhance revenue. Penetration pricing strategy: This strategy is design to capture the whole market
through entering in another area and set low prices. This pricing strategy assist
to attract potential customer of new market. After some time, company can
enhance prices slowly (Mata and Quesada, 2014).
 Skimming pricing strategy: When organisation is perceiving competitive
advantages in market, they can enter in new areas. In this way, through adopting
alternative for same products and services, Bank of England can serve their
services (Beierlein, Schneeberger and Osburn, 2013).
From the above analysis, it has been determined that premium penetration
pricing strategy is the best element to enter in new area. In this aspect, low price for
product or services can be demonstrate by the chosen business.
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3.4 How promotional activity is integrated
In respect to accomplish objectives of marketing, promotional activities are play
very important role. In this aspect, different strategies have been used that provides
information related to products or services. Following are certain activities that done by
Bank of England:
Advertisement: In advertisement, the chosen bank can use television, radio and
newspapers, etc. to demonstrate their services. In this way, they are conveyed their
message to commercial banks to promote products or services (Burchell Rettie and
Patel, 2013). Hence, schemes are develops such as discounting and many other things
will be introduced.
Personal selling: Personal selling skills assist to make contact with customers. It
influences to buyer when they are purchasing product or services. As per convenience
of customer, Bank of England provides product or services to each customer. However,
there are certain unique features also included to make effective results.
Sales promotion: Sales promotion is done through advertisement, promotion
and many other aspects that are related to marketing communication. It will assist to the
chosen bank to open their new outlet at different location through online distribution that
produce in market (Carrie, Kilkolly-Proffit and Agee, 2017).
3.5 Additional elements of extended marketing mix
Extended marketing mix includes process, people and physical evidence tool. In
this aspect, organisation is enables to operate functions in specific areas (Domegan,
Collins and Hughes, 2013). They are as follows:
Process: Process include elements to reach customer with their requirement. In
this way, Bank of England use resources that are produce effective results to reach
services users. For example, open an account, purchasing and selling of shares,
granting loan and so on (Thomas, Lewis and Westberg, 2015).
People: People are most important elements of Bank of England. This is
because, there are various people exist in the firm that assist to use services and
produce effective results as well.
Physical evidence: Physical evidence of the chosen bank determines building
that assist to provide different types of services to customers. In this way, the chosen
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business should know very careful about customer access so that they are feel enjoy
and comfortable to use it (Evans, Pattanayak and Bihm, 2014).
TASK 4
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In the chosen company, these two types of behavioural and demographic
segmentation helps to make concentration to accomplish desired results. It is the
creative activity for Vodafone to enhance their customer base in new areas of the world.
With the help of the different aspects of the measurement, proper investigation will be
considered.
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Demographic segmentation includes several elements that assists to find customer on
the basis of different elements. It includes marketing mix on which company considered
several activities.
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In the behavioural segmentation, marketing mix considered products and services that
helps to determines several point on the basis of market availability.
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Marketing of products and services different from each other because these
elements are totally different. In this consideration products can be check with uses
while services not be used in respect to considered creative results.
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On the basis of purchasing pattern, products and services have also certain
differences which create impact on the outcomes. With the help of these elements,
understanding towards the activities will be developed.
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Furthermore, in the international and domestic market, there is another difference in
which several aspects will be considered development of the activities. With the help of
the place, capital and other perspective, differences can be understand to make
effectiveness at workplace.
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CONCLUSION
From the above report, it can be concluded that there are several elements are
using in marketing process which assist to know about business performances to attract
customers. Furthermore, it articulated about macro and micro environment factors
which assist to assess impact on marketing decisions. Moreover, it summarized about
4Ps of marketing elements to select the best element which assist to produce effective
results at workplace. In addition to this, it is also included buyer behaviour which create
impact on marketing activities of the organisation. Apart from this, Vodafone UK
explains marketing plan in two different segmentation to communicate effective results
within the business environment. In this aspect, differences are frame in B2B and B2C
for the chosen business.
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