PGBM15 Marketing Management: Critically Evaluating Theory & Practice

This essay provides a critical evaluation of current marketing management theory and practice, using Ferrero Rocher as a case study. It explores B2B and B2C marketing approaches, the marketing mix, and relationship marketing, analyzing how these concepts contribute to delivering value to consumers. The essay also includes recommendations for Ferrero Rocher to increase profitability, market share, and sustainability, emphasizing brand expansion, product differentiation, and effective segmentation, targeting, and positioning strategies. The analysis considers the competitive landscape and evolving consumer behavior, offering insights into enhancing brand identity and achieving long-term success in the FMCG market. This student contributed document is available on Desklib, a platform offering a wide range of study resources.

CRITICAL EVALUATION OF THE CONTRIBUTION OF CURRENT MARKETING
MANAGEMENT THEORY AND PRACTICE
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TABLE OF CONTENTS
Introduction......................................................................................................................................2
Part 1................................................................................................................................................3
B2B market type..........................................................................................................................4
B2C market type..........................................................................................................................4
Concept of marketing mix...........................................................................................................5
Concept of relationship marketing...............................................................................................7
How to deliver value to the consumer from the chosen brand....................................................8
Part 2 Covered in PPT.....................................................................................................................9
Part 3................................................................................................................................................9
Recommendations to increase profitability, market share and the sustainability of Ferrero
Rocher..........................................................................................................................................9
References......................................................................................................................................12
INTRODUCTION
Marketing is the process of exchanging the products and services with money in which
company delivers the products to end users with the expectation of delivering quality and value
bale services (Brace, 2006). The chief product selected in the study is Ferrero Rocher which is an
Italian premium chocolate made from several ingredients. In this context, focus has been laid on
marketing concepts of FMCG products and how it meets the needs and demands of customers.
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At the same time, researcher has also discussed importance of B2B and B2C marketing
concept for the brand entity (Ferrell and Hartline, 2010). Moreover, discussion has been included
regarding external and competitor analysis and along with the same, researcher has emphasized
brand capabilities and competencies. In the last part of the study, recommendations have been
made regarding the ways to increase profitability, market share and opportunities of business
sustainability.
PART 1
In the present research study, marketing concept has been discussed which is being
applied on the product “Ferrero Rocher”.
The present research study has been emphasizing on Ferrero Rocher which is chocolate
brand that is made with premium quality chocolate that meets all the needs of customers. Ferrero
Rocher has captured huge amount of market share because it comes in boxed chocolate and the
distribution pattern is also effective because it has reached far and wide. Further, in terms of
stating about the unique qualities of the chocolate, it can be said that the brand offers a quality
and luxury product and the taste is also similar worldwide. It is available in several numbers
which showcases its demand and supply effectiveness.
The chocolate is also useful as a source of giving gifts; thus in most of the countries, it is
an ideal product for gifting. Roughly, 3.6 billion Ferrero Rochers are sold each year over 40
countries and which chiefly include European, Asian and American countries. It is traditionally
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associated with Christmas and New Year and some countries hold a policy where the sweet is
sold only during winter season. As of year 2015, 61% of Ferrero Rochers were sold during the
last three months of the year which states that the chocolate has high demand for consumption. It
is also ranked as a premium quality chocolate because it is available in variety of packages for
both seasonal and special events. The brand has launched two new brands Ferrero Cappuccino
and Ferrero Rond Noir recently.
B2B market type
B2B marketing is highly important. In the same category, business entities should
promote the product (Ferrero Rocher) in such a manner so that other retail organizations can get
ready to sponsor the product. Ferrero Rocher is an Italian chocolate that is made as per the
preference of customers (Kemmer and Boden, 2012). It is also regarded as a premium chocolate
because of its packaging. In B2B marketing, the company producing Ferrero Rocher needs to
focus on the brand image so that promotional aspects can encourage other business entities to
sell the same. In this concept, it is essential for the business entities to focus on appropriate brand
message so that it can create good impression over the customers. Thus, it is clear that there are
several entities involved in the selling of Ferrero Rocher to the end users. In order to deliver
Ferrero Rocher, it is essential for the brand to emphasize on developing several contacts and
collaboration so that product can be suitably sold to the consumers. Moreover, with the help of
B2B marketing, Ferrero Rocher needs to emphasize on suitable distribution strategy for optimum
product delivery. At the same time, it is clear that B2B marketing is more appropriate as
compared to B2C marketing because it involves several channels through which brand awareness
can be developed.
B2C market type
B2C market type is a process in which business entities sells the products to the
customers directly. For example- customers getting Ferrero Rocher directly from the
manufacturer. B2C marketing plays crucial role in enhancing the brand image of the product
through delivering it to the direct end users. At the same time, B2C marketing is also important
because Ferrero Rocher has affordable prices and people often the chocolate regardless of the
occasion. B2C concept is less important in FMCG products because consumers usually purchase
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food products from supermarkets and retail markets (Hermann, 2009). Thus, it clearly shows the
need of intermediaries in selling the product and service. Moreover, different marketing
strategies are also required to be developed in the same so that the actual product Ferrero Rocher
can reach up to the direct end users.
However, in the case of B2C marketing, it is vital for the brand to focus on suitable
customer segment so that products can be delivered appropriately. This is also crucial for the
purpose of developing direct relationships with the customers. B2C marketing can be adopted by
Ferrero Rocher to avoid all the challenges that usually come in between communication
channels.
Concept of marketing mix
For the purpose of enhancing brand image of Ferrero Rocher, it is essential for the
manufacturer to emphasize on all the elements of marketing mix. It plays imperative role in
selling more quantity of products through suitable use of all the elements. In this way, it can be
said that the brand (Ferrero Rocher) needs to focus on each and every element.
 Product: The main product of the brand is Ferrero Rocher which should be made up of
premium chocolate so that customers can buy it. Product should meet all the requirements
of customers because it is the only way through which it can be promoted among larger
customer segment (Handlechner, 2008).
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 Price: Price of the product (Ferrero Rocher) should be affordable so that it can be
purchased customers. Since, it is a chocolate; therefore apparently, youngsters and
children would like the product the most; hence prices should be set accordingly.
 Place: Place is an important element that plays crucial role in amending the level of
profitability. In this respect, the brand (Ferrero Rocher) can adopt different sources for
distributing the products; however that needs to be convenient. This can only assist in
grabbing the attention of customers (Fifield, 2012).
 Promotion: Promotion is an important aspect that needs to be managed in such a way so
that it can influence large number of people to purchase the products. Thus, in this
respect, the brand (Ferrero Rocher) has to emphasize on persuading elements so that it
can influence the mind-set of customers and can enhance the quantities of selling.
However, on the other hand, Hermann (2009) stated that all the elements of marketing
mix are not possible to include in the product strategies because it typically enhances the
investment expenditure of the entity. The most important barrier that might occur here is the
prevalence of competition that affects the market situation and business activities.
However, on the other hand, it can be said that all the elements of marketing mix is
essential to be included so that products can be properly promoted at the market place.
Moreover, elements of marketing can also assist in enhancing the facets through which growth
and success dimensions can be amended.
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Concept of relationship marketing
The early modern marketing efforts were influenced by economic thinking; whereas the
concept has been changed and now it is dominated by consumer behaviour and unconventional
ideas of the subsequent process (Ferrell and Hartline, 2010). Relationship marketing focuses on
developing prominent relationships with the clients and this is the only way to deliver valuable
amenities to the end users.
Relationship marketing is also vital because that aids in involving the customers in the
selling process (Doole and Lowe, 2008). With this approach, the brand can also deliver optimum
services through identifying the needs and preferences of the clients. For example- the brand
(Ferrero Rocher) needs to get feedback and opinion from the customers on regular basis so that
certain improvements can be made in the product utility.
However, Brace (2006) stated that there should be more concern towards organizational
resources because in order to develop better relationships with the customers, a lot of resources is
required to be implemented in all such areas.
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At the same time, it can also be argued that CRM system is a typical business tool that
allows the business entity to manage customers, partners and prospects in one area. In the
commercial business world, CRM system is useful in tracking the activities which are concerned
with better customer management (Hermann, 2009).
Thus, contradicting the above definitions, it can be said that Customer Relationship
Management is regarded as a practice which is adopted by the companies to manage and analyze
customer interaction (Buckley, 2002). Further, it also improves business and customer
relationship and it also drives the customers for more purchase.
How to deliver value to the consumer from the chosen brand
Organizational approach of the brand (Ferrero Rocher) must be focused on delivering
valuable services to the clients so that brand image and brand value can be developed. In this
context, the brand must make use of appropriate marketing philosophies and concepts (Kemmer
and Boden, 2012). This is also vital for demonstrating the quality of the product and as a result,
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sales and profitability aspects can be increased (Dibb and Simkin, 2013). Customer always prefer
to have quality associated products; therefore the brand (Ferrero Rocher) should consider this
aspect on higher extent. This is significant not only to satisfy the end users; but also to retain
them for longer time span.
PART 2 COVERED IN PPT
PART 3
Recommendations to increase profitability, market share and the sustainability of Ferrero Rocher
Ferrero Rocher has the opportunity to enhance the market share because the brand has
different products which are capable to acquire the attention of customers. However, competitors
may impede the brand development of Ferrero Rocher because of the various products and
services. Increasing trends of Nutri-bars are replacing chocolates and this is a major threat for
Ferrero Rocher whose brand equity depends only on its chocolates (Marketing Mix Ferrero
Rocher. 2016). In terms of SMART objectives, it can be said that Ferrero Rocher needs to focus
more on brand expansion and diversification so that people in different countries can know about
the availability of goods and services. As per the brand identity, it is vital for Ferrero Rocher to
emphasize more product differentiation aspects so that innovative and new concepts can be
added to the chocolates.
In order to become a competitive entity, it is essential for Ferrero Rocher to emphasize
more on New Product Development strategy wherein the brand should accentuate more towards
developing new products and services. Moreover, Ferrero Rocher should also emphasize on
involving all the employees in decision making aspects so that all can give valuable suggestion
and opinion in decision making procedure (Kim, Forsythe and Moon, 2002). Thus, in this realm
it can be said that Ferrero Rocher should pay appropriate concern towards segmentation,
targeting and positioning strategies as this can also enhance brand identity aspects.
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The targeted market of Ferrero Rocher is children and youngsters who prefer to consume
chocolate products on higher extent. As per differentiated targeting strategy, Ferrero Rocher has
targeted the specific market place which also increases sales and profitability facets. Along with
this, the brand also focuses on buyer behaviour which keeps on changing on higher extent
(Holmlund, Kowalkowski and Biggemann, 2016). FMCG products needs to be based on
customer’s needs and demands so that sales aspects can be fulfilled. Along with this, it is also
vital for Ferrero Rocher to get regular feedback from the clients so that they can assist the
business entity to encourage the brand image in effective manner. At the same time, the brand
should also consider development of new strategies and techniques for amending the business
prospects (Shankar and et.al., 2016).
Further, customers are getting more concerned about their health; thus this leads Ferrero
Rocher to adopt new trends and aspects to meet the changing needs of end users. People are
getting more conscious about their health; therefore this is the reason that declines the demand
for chocolates. This prevails especially among youngsters (girls and women). This is also
another facet through which changes could be made to marketing concepts. At the same time, it
is also required for Ferrero Rocher to emphasize on relationship marketing so that the ratio of
customer satisfaction can be amended. Ferrero Rocher should also focus to bring more changes
in marketing strategies so that customer retention can be facilitated (Evans, 2016). Since, there
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are numerous competitors of Ferrero Rocher; hence the brand needs to focus more on generating
branding facets so that requirements of changing market can be accomplished.
Further, in order to satiate the customers, it is essential for Ferrero Rocher to put more
concern towards marketing management so that all the long term aim and objectives can be met.
This is yet another facet through which operations of the brand can be managed suitably. All the
recommended things should be monitored suitably so that performance aspects of Ferrero Rocher
can be augmented (Mishulin and et.al., 2016). This is yet another facet through which success
and growth facets can be encouraged.
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REFERENCES
Evans, W.A., 2016. Marketing and the Myth of Corporate Social Responsibility. In Proceedings
of the 1979 Academy of Marketing Science (AMS) Annual Conference (pp. 333-336).
Springer International Publishing.
Ferrero profits rise 14% as it grows in emerging markets. 2015. [Online]. Available through:
<http://www.confectionerynews.com/Manufacturers/Ferrero-financial-results-2014>.
[Accessed on 12th December 2016].
Handlechner, M., 2008. Marketing Strategy. GRIN Verlag.
Hermann, S. 2009. The crisis and customer behaviour: eight quick solutions. Journal of
Customer Behaviour. 8(2), pp. 177-186.
Holmlund, M., Kowalkowski, C. and Biggemann, S., 2016. Organizational behavior in
innovation, marketing, and purchasing in business service contexts—An agenda for
academic inquiry. Journal of Business Research. 69(7). pp.2457-2462.
Kemmer, M. and Boden, A. 2012. “Price” as one Parameter in the Marketing Mix. GRIN Verlag.
Kim, J., Forsythe, S. and Moon, S.J. 2002. Cross-Cultural Consumer Values, Needs and
Purchase Behaviour. Journal of Consumer Marketing. 19, pp. 481-502.
Marketing Mix Ferrero Rocher. 2016. [Online]. Available through:
<http://www.marketing91.com/marketing-mix-ferrero-rocher/>. [Accessed on 12th
December 2016].
Mishulin, G. M. and et.al., 2016. Integrated Marketing Information and Communication System:
New Quality of the Communication Interaction. International Review of Management
and Marketing. 6(6S). pp.7-14.
Shankar, V. and et.al., 2016. Mobile Shopper Marketing: Key Issues, Current Insights, and
Future Research Avenues. Journal of Interactive Marketing. 34. pp.37-48.
SWOT analysis of Ferrero Rocher. 2016. [Online]. Available through:
<http://www.marketing91.com/swot-ferrero-rocher//>. [Accessed on 12th December
2016].
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