Establish and Adjust Marketing Mix: A Comprehensive Analysis

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Establish and adjust Marketing mix
Assignment
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Table of Contents
Part A:..............................................................................................................................................3
(i):................................................................................................................................................3
(ii):...............................................................................................................................................3
(iii)...............................................................................................................................................4
(iv):..............................................................................................................................................4
(v):................................................................................................................................................4
(vi):..............................................................................................................................................5
(vii):.............................................................................................................................................6
(viii):............................................................................................................................................6
(ix):..............................................................................................................................................6
(x):................................................................................................................................................7
(xi):..............................................................................................................................................8
(xii)..............................................................................................................................................8
(xiii):............................................................................................................................................9
(Xiv):............................................................................................................................................9
(xv):..............................................................................................................................................9
(xvi):..........................................................................................................................................10
Part B:............................................................................................................................................11
(xvii)..........................................................................................................................................11
(xviii).........................................................................................................................................12
(xix)............................................................................................................................................14
References:....................................................................................................................................15
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Part A:
(i):
During the determination of market, characteristics of the product are one of the most significant
elements that should be considered by the marketing managers. It is a well-known fact that the
determination of the correct market is necessary to ensure the success of a new product. Without
identifying an active market for anew product, sufficient revenues cannot be generated. Though
considering the specifications of a product, marketing managers can identify the most suitable
customer base for the product and enlarge the revenues at the desired stage.
(ii): Apple i Phone:
The premium pricing policy is followed by the Apple Company in which higher prices are
charged by the seller than competitors. This pricing strategy is suitable for that company which
have strong brand value, innovative product specifications and luxury status. I-phone products
are offered with new innovations, and the company has very strong band value among
customers, so premium pricing is suitable for I-phone products (Maguire, 2018).
The demand for products that are related to prestige or luxury and offered with new
specifications shows an inelastic behaviour against pricing. Thus, the change in prices of I-phone
products does not make a significant impact on the products of the company.
 Lenovo:
Lenovo is a leading brand in the segment of laptops, tablets and computers. Price skimming
strategy is utilised by the Lenovo for the pricing of products. Under this strategy, prices of
products at the introductory phase remain higher while low prices are charged after the
introduction of similar products in the market.
Relative elastic behaviour is shown by the demand of Lenovo Products against the prices. In this
situation, the demand for product remains unaffected from the price alterations up to a certain
level, and after that, significant changes in demand occurs due to alteration in prices.
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 Keto Coffee:
It is a popular coffee band which is available for worldwide consumers through online
platforms.Similarly, there are several supermarket chains that are selling Keto Coffee products.
Competitive pricing strategy is used by the Keto managementto make the product affordable for
each class of customers and maximise the sales.
Keto Coffee is consumergoods, and several substitutes are available in the market so a change in
price will create a significant impact on the product demand. Many companies are selling similar
products, so increment in price forces the consumers to use another band (Maguire, 2018).
Similarly, Decrease in prices will help to get more customers which will create enhancement in
demand.
(iii)
Promotions are a vital part of marketing strategies which leads to enlarging the effectiveness of
sales strategies. Use of suitable promotional models leads to create several competitive
advantages for the businesses. Brand recognition, enlarged client tariff, enlarged sales volumes
are some examples of benefits that can be generated by the implementation of suitable
promotional strategies (Bradley, 2019). For example, A New restaurant can offer discount
coupons to attract a large number of customers and increase market awareness. The offering of
discount along with quality service will help create a loyal consumer base, and the same will
provide sustainable success to the business.
(iv):
Distribution channels are the mediums that are used by a manufacturer to ensure the availability
of goods for the end user. These channels are supply lines which transfer goods to other location
so that scattered consumers can buy and consume the goods. Outcomes of all marketing
activities depend on the distribution channels because ignorance of effective distribution system
comes with a threat to sustainability (Chand, 2019). For example, anew car company which is
going to offerdifferent types of cars should work to improve the distribution channels so that the
maximum number of clients can be reached. Effective distribution channels help in the
determination of customer needs and supply management to ensure the maximum profits for the
entity.
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(v):
Quality of customer service decides the outcomes of each marketing and sales activity. A
commercial organisation that is focused on the excellent customer service will gain a loyal
customer base and great increment in sales volume. Impact of good service can be explained as
below:
 It helps in the creation of a strong base of regular clients which is essential to assure the
satiable success forthe business.
 Through excellent customer service, a business can handle the competitive forces effectively.
Quality in customer service increases the client engagement for the organisation and leads to
enlarging the gains (Ameritas, 2017).
 It leads to reduce marketing in the long term by increasing the positive image of the brand
among targeted customers.
(vi):
Significance of customer demographics can be understood in the following manner:
Age:
Age is a crucial factor that should be considered while deciding the targeted customer base for a
product or service. For example, a company that is planning to enter in sports shoe segment
should concentrate on youngsters and teenagers because they have the highest potential to use
sport shoes regularly (PSU, 2016).
Income:
Level of income is another crucial matter which should be concentrated during the setting of the
target customer segment. For instance, a company that is producing luxury cars should
concentrate on rich customers whereas a company that is producing mid-price segment cars
should target middle-level peoples to increase sales.
Occupation:
Occupation of a person makes a significant impact on purchasing behaviour and lifestyle habits.
It decides the preference of a person towards different services and products (PSU, 2016). For
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example, an accounting software company will concentrate on the businesses and accounting
professionals to enhance the revenues.
(vii):
To determine the impact of the marketing mix, managers can use a different type of data
resources. Social media data and financial data are two different data types that can be utilised
for this purpose.
 Social media data:
Marketing channels of social media generate a huge database which can be utilised to determine
the effectiveness of marketing strategies. Through the investigation of customer likes and
reviews provided by the customers for company products, managers can determine the consumer
expectations and improve the products as per consumer demand. It will help to gain sustainable
success in the market.
 Financial data:
Financial data can be utilised to understand the improvements in revenues and incomes. It will
helpto determine the impact of marketing activities on the operational incomes so that
appropriate strategies can be made for the negative elements.
(viii):
For the detailed analysis of environmental factors, PESTLE analysis is one of the most popular
and suitable techniques because it helps to determine the impact of one factor on other associated
Areas. Through the PESTLE analysis, the effect of change in the external market can be
evaluated on marketing strategies which will aid to protect the business from adverse changes
and prepare the business form sudden threats.
(ix):
There are several factors which makes an influence on customer behaviour. Prices of products,
traditional assumptions, income level, lifestyle, brand image are some examples of things which
have considerable influence on client preference. For example, traditional assumptions that are
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followed by the targeted customer population decide the preference for different products. For
example, the preferences of a vegetarian consumer will be different from the preferences of a
non-vegetarian consumer.
These things make a significant influence on marketing strategies. For example, a company that
is targeting price-sensitive consumers will concentrate on the optimisation of prices to stay
competitive in the market and retain loyal customers. Similarly, a business that is selling clothes
should concentrate on current fashion trends so that sufficient changes can be in offered products
and applied advertisement strategy.
(x):
Crest Toothpaste is a popular brand in Australia which is showing continuous growth in
revenues. Effective marketing strategy is the main reason for the enlargement in popularity and
market acceptance of this product. Contribution of different marketing factors in this growth can
be understood from the following discussion:
 Price:
The strategy of competitive prices isadopted by Crest management to attract the maximum
number of customers. For instance, prices of Crest toothpaste is lesser than other stabilised
brands which are contributed high in the growth of revenues of Crest Toothpaste.
 Promotion
Through effective promotional strategies,a large market has been captured by the Crest
toothpaste. For example, the company offered 20% extra in tetra pack which motivated
customers to buy this product (Bradley, 2019).
 Distribution
Diversified distribution channels are the main reason for the unpredictable success of Crest
Toothpaste. For instance, Crest Toothpaste is available at retail shops, online platforms and
supermarket stores and the same is helpful to cover maximum customers of the targeted
population.
 Customer service
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Through real-time processing of customer quarries, Crest management created a positive image
among customers. It is the main reason for the establishment of Crest Toothpaste as a brand.
(xi):
Woolworth is a leading supermarket company which is dedicated to providingthe best products
to consumers. Solid marketing strategies are followed by the company to ensure the attainment
of marketing targets. A brief discussion of Woolworth’s marketing mix is as below:
 Product
Woolworth is offering a different type of consumer products and dedicated to assuring quality.
Similarly, feedback provided by the customers are used to identify the changes in consumer
preferences and requirements so that suitable products can be availed (Martin, 2014).
 Price
Price optimisation is one of the strongestelements of Woolworth’s marketing strategy as a
company is focused on selling the products at the lowest prices. it helps to enlarge the sale
volume and profits significantly.
 Place
Woolworth stores are situated at prime locations which work as an effective tool to convert the
store visitors into real customers. Additionally, a demand-based distribution strategy is followed
by the Woolworth Company to ensure the availability of enough products at the right place
(Martin, 2014).
 Promotion
Diversified policies are followed by the Woolworth to promote the company services at different
levels. Social media are publicizing, PR marketing, Phone marketing and discount marketing are
a vital part of Woolworth’s marketing plan to maximise the sales and returns.
(xii)
Product = BMW x 1
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Company = BMW
Organisational Objectives = profit maximisation and customer satisfaction
BMW is a leading company which is dedicated to providingthe best luxury experience to its
customers. Car X1 of BMW is one of the highest selling cars in the world because it is offered
with the highest comfort, security and luxury facilities. Highest consumer satisfaction is the
primary object of BMW and Car-X1 is helping in it. By providing the maximum worth of money
to customers, it is creating a strong and loyal customer base for the company. Similarly, it is
generating huge revenues for the company and fulfilling the object of profit maximisation.
(xiii):
Marketing mix or marketing plan should be monitored against the performance to identify the
effectiveness of marketing efforts. Below discussion is enough to understand the needs of
marketing mixmonitoring:
 It helps to determine the benefits that are received by the business from marketing efforts. if
outcomes are not accountable with budgeted figures, the company can rearrange the strategy
for upgrading (Smith, 2019).
 Monitoring against performance denotes the areas which are not providing the desired
performance level. For example, monitoring of prices against the revenues will assist in
detecting the over or under pricing situations so that appropriate prices can be decided.
(Xiv):
Samsung mobiles are the most suitable example of a change in the marketing mix due to
customer response. Recently TV advisement strategy was adopted by Samsung to reach to
maximum customers. It was an expensive marketing effort but failed to provide sufficient
outcomes. After the same, social media advertisement strategy has been adopted by Samsung to
attract customers. Due to this change, Samsung S-10 Plus becomes one of the highest selling
smartphones.
(xv):
Budgets are the lifeline of operations because failure in compliance with budgeted figures may
create financial problems. Marketing strategies are prepared according to the financial conditions
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of business because excessive spending on marketing activities creates financial crises. Thus,
adjustments in marketing policies should be made in accordance with budget practices to protect
the business from undesired situations.
(xvi):
Marketing strategies make a significant impact on the sustainability of business because sales
and revenues depend on market efforts. For the success and sustainability of a business, it is
required to be ensured that adjusted marketing strategies are accountable with organisational
goals. By ensuring it, the company will be able to gain sufficient profits from operations and
stable brand image among customers.
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Part B:
(xvii)
Particulars Quarter I Particulars
Quarter
IV
Coffee Coffee
January 29121 October 31622
February 29267 November 32097
March 29705 December 32257
Total 88093 Total 95976
Big Mac Big Mac
January 19278 October 24076
February 19760 November 24677
March 20254 December 25294
Total 59292 Total 74047
Filet o fish Filet o fish
January 4876 October 6089
February 4998 November 6242
March 5123 December 6398
Total 14997 Total 18729
CALCULATION OF GROWTH
PERCENTAGE
Coffee 9%
Big Mac 125%
Filet o fish 25%
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