Marketing Principles: Consumer Behaviour and Analysis for P&O Ferries

This report provides a comprehensive analysis of marketing principles using P&O Ferries as a case study. It begins with an introduction to marketing principles and then delves into consumer behavior, employing the EKB model to understand consumer decision-making processes. The report then explores data segmentation and the STP (Segmentation, Targeting, and Positioning) process. A significant portion is dedicated to a SWOT and PESTLE analysis, evaluating the internal strengths and weaknesses, and external opportunities and threats, as well as the political, economic, social, technological, environmental, and legal factors impacting P&O Ferries. Finally, the report examines the marketing mix, including product, price, place, promotion, people, processes, and physical evidence, to develop effective marketing strategies. The report concludes by summarizing the key findings and implications for P&O Ferries' marketing efforts.

Marketing Principle

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 – Consumer behaviour and data segmentation..................................................................1
TASK 2 – SWOT & PESTLE analysis............................................................................................3
TASK 3 – Marketing Mix................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Principles of marketing are agreed-upon marketing ideas companies use so that effective
and productive marketing strategies can be applied to businesses. These are the principles upon
which effective product promotional strategies are established. The basic marketing principles
consist of product, price, place and promotion. To understand the concept of marketing
principles in this project report P&O Ferries organisation is considered. This company was
established in the year 2002 at Dover, United Kingdom (Bühler and Nufer, 2015). Key people of
the organisation are Janette Bell and Karl Howarth and operates in transportation businesses.
This project report consists of consumer behaviour and segmentation theory with SWOT and
PESTLE analyses to analyse macro and micro environment. All of these factors will relate how
the company can gain competitive advantages.
TASK 1 – Consumer behaviour and data segmentation
International business environment is comprised various factors such as political, risk,
cultural differences, exchange risk, legal and taxation issues. All these factors are termed as
components of global business environment and available to any business organisation operating
in international markets. Through international business more and more foreign trade is
introduced to businesses and this leads to boost in the economy and standard of living. A
international business environment is comprised with factors like geographical, cultural and
social, economic conditions, political and legal factors that are revelling in any country. P&O
Ferries organisation is providing facilities to sea passage across stretch of water between
England and France. While providing services to large number of consumers and satisfying them
with best services it is important for P&O Ferries organisation to understand consumer
behaviour. The study of consumer behaviour helps a business organisation to understand how
and individual consumer, group or organisations selects, buy, use and dispose ideas, goods and
services to satisfy needs and wants of consumers. To understand consumer’s behaviour Engel,
Kollet, Blackwell (EKB) Model is used by P&O Ferries organisation.
EKB is a comprehensive model that depicts the consumer behaviour as a decision making
process by comprising of five different stages; need recognition, information search, alternative
evaluation, purchase decision and outcomes (Burchell, Rettie and Patel, 2013).
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Need recognition: At this stage managers of P&O Ferries organisation identifies
consumers’ needs this helps them to evaluate gap between the ideal and current stage of service
provided. At this stage it is identified that consumer prefer comfort then cost and speed for
travelling.
Information search: At this stage all the information will be searched to identify
opportunities. It has been identified that frequency of short-break holiday's and consumers
having second property abroad is high and will bring more opportunity to expand.
Assessment of options: All the options that are available for travelling will be searched
properly so that services provided by P&O Ferries organisation is enhanced in quality.
Purchase decision: At this stage purchase decision of consumers will be assessed and
qualities such as luxury preferred by them is developed in services of P&O Ferries organisation.
Outcomes: Outcomes of the consumers behaviour will be analysed to assess whether
they are satisfied or not and any variance is minimised in future (Dibb, Carrigan and Gordon,
2013).
Behavioural segmentation is a marketing strategy based on actual consumer buying
behaviour. It this process consumers are divided into groups on the basis of their knowledge,
attitude towards use of product. P&O Ferries organisation will use this to know how well
consumers are known with the products and satisfied with the services.
Segmentation, Targeting and Positioning (STP) is a familiar strategic approach used in
marketing for consumers by improving performance.
Source: STP Process, 2019
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Illustration 1: STP Process, 2019

Segmentation: Organisations tries to serve more and more consumers but no one can serve all
things to all people. Segmentation is important to divide consumer group on the basis of needs
and wants. When segmentation is performed by P&O Ferries organisation then each group will
be provided with services in best manner and that to cost effective (STP Process, 2019). This
will help P&O Ferries organisation to gain competitive advantage over others in the market.
Targeting: When consumers are segmented and then at this stage most attractive group
is selected as targeted group. Each segment is evaluated to identify value available in each
market segment. Market attractiveness is determined and measures are developed for each
segment.
Positioning: A position will be developed for each targeted segment. At this stage the
products are positioned completely in the segment and a detailed marketing mix is developed.
P&O Ferries organisation has developed a unique selling proposition for its services to serve all
the consumers in best manner (Flora, Schooler and Pierson, 2018).
TASK 2 – SWOT & PESTLE analysis
Marketing decisions are very important to serve large number of consumers with
products and services best suitable for their needs. To make any marketing decision P&O Ferries
organisation needs to analyse micro and macro business environment and for that SWOT and
PESTLE analyses will be performed.
Strengths Weaknesses
 To make journey interesting introduced
some entertainment services.
 Facilitates variety of consumers, foot
passengers, cars to freight businesses in
different countries.
 P&O Ferries organisation demand-led
online pricing structure is relatively
 Services provided by P&O Ferries
organisation is less convenient and
slower than the channel tunnel.
 Ferry is affected through weather
conditions and can become
inconvenient for consumers. Travelling
through train is not affected by weather.
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simple and flexible.
 P&O Ferries organisation offers to its
consumer comforts and space as an
important factor for travel.
Opportunities Threats
 Attracts consumer group having second
home abroad to transport furniture on
ferries.
 Efficient security procedure attracts
more and more consumers to travel
with ferries.
 Services that are provided is
environmental friendly and tax
effective in long run it helps in
attracting large number of consumer
group.
 High speed trains are introduced and
they are becoming threat for business of
P&O Ferries organisation.
 More and more competition is
enhancing day-by-day and it leads to
uncertain future for P&O Ferries
organisation.
 Low-cost airlines are introduces and
they are becoming threat for P&O
Ferries organisation for competing on
the basis of price.
PESTLE analysis is a framework that is used to analyse and monitor the macro-
environmental factors that may have a impact on organisational performance (PESTLE Analysis,
2016). P&O Ferries organisation PESTLE analysis is as follows-
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Illustration 2: PESTLE Analysis, 2016
Source: PESTLE Analysis, 2016
Political: As per this factor political stability and changes in UK's political system can
affect business of ferries in negative and positive manner. To make effective marketing strategy
these factors will be considered to avoid negative impact and enjoy opportunities.
Economic: Economic factors such as growth rate, exchange rate, inflation rate, interest
rate and income of consumers have a great impact on business of P&O Ferries organisation. In
long run to assess demand and supply in travel sector all these factors will be considered for
effective marketing strategies (French and Lefebvre, 2012).
Social: The dimensions of the general environment represents norms, customs and value
of the group within which business of P&O Ferries organisation is operated. Population growth
art, age distribution, income distribution and safety emphasis will become important factors for
P&O Ferries organisation while targeting consumer group. P&O Ferries organisation is benefited
through providing more emphasis on safety and security of travelling group.
Technological: Innovations in technology affects the operations of the industry and
changes the market scenario in favourable and unfavourable manner. As air services and fast
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trains and more involved with technology and is hampering business of P&O Ferries
organisation in long run.
Environmental: Due to scarcity of resources, pollution targets and carbon footprint set
by government it becomes important to assess environmental factors affecting business. P&O
Ferries organisation will get benefit through this factor as services provided are environmental
friendly and will attract more consumers for considering environment as priority (Jobber and
Ellis-Chadwick, 2012).
Legal: There are certain laws implemented on a business while performing any business
activity and companies need to know regarding these laws to trade successfully and ethically.
Business law and marine law for operating in water bodies must be considered by P&O Ferries
organisation to avoid any legal conflicts.
With SWOT analysis various internal factors will be understood and opportunities are
identified. This analysis will influence the ability to take advantage of new opportunities that are
within P&O Ferries organisation. All the external factors influencing decision making will be
used to review the company’s performance by strategic decision making.
TASK 3 – Marketing Mix
Marketing mix refers to the set of actions or tactics that is used by business organisations
to promote brand name or product in the market. Marketing mix is implemented with the purpose
to control marketing plan. In market mix control elements of the product's marketing plan is
implemented so that P&O Ferries organisation can enjoy effective marketing strategy. Elements
of marketing mix involves 7 P's that are as follows-
Product: It means goods and services combination offered by P&O Ferries organisation
to the target market group. Services that are offered to consumers must be features in such
manner that it leads to satisfy needs and wants of targeted consumer group. Consumers while
receiving ferries services prefer quality and comfort and this should be considered while
introducing services.
Price: Pricing strategy helps to determine the amount that consumers must exchange to
receive the offerings. To compete effectively in the market companies use strategy to reduce the
cost of goods and services so that consumers can be provided with product that possess value for
money paid by them (Kamarulzaman and Madun, 2013). P&O Ferries organisation is using
demand-led online pricing structure which is simple and flexible to support competitive
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advantage. Consumers are not price sensitive and that must be consider while providing services
to them in case of P&O Ferries organisation.
Place: It includes company’s activities that make the product available to target
consumers. Access to services is important to attract more and more consumers and P&O Ferries
organisation is attracting more number of consumers through its online presence. Being in a
suitable place on correct time helps to gain competitive advantage over others.
Promotion: In this element all the activities used by marketers to inform consumers
regarding existence of products and services offered by them is included targeted consumers to
buy these goods and services. P&O Ferries organisation will use effective promotional scheme to
reach to its targeted consumers group.
People: Business of an organisation is highly relied on the people who run it and perform
all the activities to achieve set objectives. All humans such as consumers, firm's personnel and
other consumers in the service environment are the important element for experiencing services.
When excellent consumer services will be provided by P&O Ferries organisation then it will help
in attracting more and more consumers and retaining them for repeat purchase.
Processes: The actual procedures, mechanisms and flow of activities by which the
service is delivered to consumers’ needs to be easy. It must ensures that the same standards of
services to consumers is provided that matches with description. The process must save time and
money of consumers to attract them for demanding services offered by P&O Ferries
organisation.
Physical Evidence: It is the environment in which the service is delivered and business
organisations intact with consumers. In physical environment services must be explained and
demonstrated in such manner that it attracts targeted consumers with an intention to satisfy their
needs (Kotler and Armstrong, 2013).
All the elements of marketing mix will be used by P&O Ferries organisation so that
effective marketing strategies can be applied to and competitive advantages can be achieved.
CONCLUSION
From the above project report it has been concluded that marketing principles when
applied to a business organisation then effective results can be achieved. Applying consumer
behaviour theory and STP which services needs to be provided id identified by P&O Ferries
organisation. SWOT and PESTLE analysis will help in identifying internal and external markets
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strengths and weaknesses so that opportunities can be taken in the best productive manner. A
well-defined marketing mix allows P&O Ferries organisation to make profitable marketing
decision and helps in achieving goals and objectives in long-run.
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REFERENCES
Books and Journals
Bühler, A. and Nufer, G., 2015. Marketing in sports.
Burchell, K., Rettie, R. and Patel, K., 2013. Marketing social norms: social marketing and the
‘social norm approach’. Journal of Consumer Behaviour. 12(1). pp.1-9.
Dibb, S., Carrigan, M. and Gordon, R., 2013. Unlocking the potential of upstream social
marketing. European Journal of Marketing.
Flora, J. A., Schooler, C. and Pierson, R.M., 2018. Effective health promotion among
communities of color: The potential of social marketing. In Social Marketing (pp. 353-
373). Psychology Press.
French, J. and Lefebvre, R. C., 2012. Transformative social marketing: co‐creating the social
marketing discipline and brand. Journal of Social Marketing.
Jobber, D. and Ellis-Chadwick, F., 2012. Principles and practice of marketing (No. 7th).
McGraw-Hill Higher Education.
Kamarulzaman, Y. and Madun, A., 2013. Marketing Islamic banking products: Malaysian
perspective. Business Strategy Series. 14(2/3). pp.60-66.
Kotler, P. and Armstrong, G., 2013. Principles of Marketing (16th Global Edition).
Online
STP Process. 2019. [Online]. Available through:
https://www.segmentationstudyguide.com/stp-process/what-is-the-stp-process/,
Accessed on 05/11/2019
PESTLE Analysis. 2016. [Online]. Available through:
https://www.business-to-you.com/scanning-the-environment-pestel-analysis/ , Accessed
on 15/11/2019
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