Marketing Principles Report: HTTY Associates and Planet Preserve

This report provides a detailed analysis of marketing principles in the context of Planet Preserve, a new client of HTTY Associates. It begins by evaluating the benefits and costs of marketing orientation for the fruit and preserve manufacturing company, emphasizing customer-centric alignment, adaptability, and competitive advantage. The report then outlines the essential elements of the marketing process, including market analysis, target market identification, and setting marketing objectives, alongside an examination of the marketing mix. Segmentation criteria for jams and preserves are proposed, including demographic, psychographic, and behavioral approaches. The report further explores targeting strategies and methods for Planet Preserve to sustain competitive advantage, such as cost leadership and customer intimacy. Additionally, it addresses distribution strategies for convenience and examines marketing mix applications in different contexts, including B2B and B2C buyer behavior, promotional activities, and the differences between international and domestic marketing. The report concludes with a comprehensive overview of marketing strategies and their practical application for Planet Preserve.

Marketing principles

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
(a) Evaluating the benefits and costs of marketing orientation ...................................................3
b) .................................................................................................................................................5
Various elements of marketing process required ........................................................................5
Proposing segmentation criteria for jams and preserves ............................................................6
Targeting strategy to be used by Planet Preserve ......................................................................7
(c) Development of Planet Preserve products to sustain competitive advantage .......................7
(d) arranging distribution for food products to provide convenience .........................................8
(e) How prices are set to reflect objectives and prevailing market conditions ...........................8
(f) Macro and micro environmental factors influencing marketing decisions ............................9
(g) Analysing additional elements of extended marketing mix ...............................................11
Task 2...............................................................................................................................................1
(a) Marketing Mix for business expansion..................................................................................1
Marketing mix strategies for customers and small retailers.......................................................1
(b) Buyer behavior of B2B & B2C..............................................................................................2
Marketing activities for B2B & B2C...........................................................................................3
(c) Promotional activity to achieve marketing objectives............................................................3
(d) International marketing differs from domestic marketing.....................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES ...............................................................................................................................6
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INTRODUCTION
Principles of marketing are concerned with a range of processes that are adopted by firms
for finding out what customers want and the providing for their needs. Four key elements, known
as the four Ps of marketing are also involved in marketing principles (Henley, Raffin and
Caemmerer, 2011). These also comprise of a range of marketing decisions that are taken by an
organization for selling its products. Marketing principles are also considered to be the ideas
which form the basis of most of product promotion strategies (Simon and Gentry, 2014). The
present report is about Here’s Talking To You (HTTY Associates) and its new client company
Planet Preserve. HTTY Associates works to provide advertising and marketing services to
businesses. In the present report, marketing principles will be discussed in the context of Planet
Preserve, which is a new client of HTTY Associates. The concepts and processes of marketing
have been analysed in the report. Further, an attempt has been made to use the concepts of
segmentation, targeting and positioning. Individual elements of extended marketing mix have
also been explored. Lastly, in the report, marketing mix has been used in different contexts.
TASK 1
(a) Evaluating the benefits and costs of marketing orientation
The benefits and costs of marketing orientation can be evaluated for Planet Preserve. This
will enable the fruit and preserve manufacturing company to exploit its commitment to ethical
and sustainable practices in marketing its products. It will also help in improving commitment to
responsible business behavior (Eagle and et.al., 2013). Marketing orientation focuses on
delivering products by designing them as per the needs, requirements and desires of consumers
along with incorporating the elements of product functionality and product efficiency. The
following are the benefits of marketing orientation for Planet Preserve: Customer centric alignment- Marketing orientation provides the advantage of customer
centric alignment to organizations. As per the case study, if Planet Reserve adopts
marketing orientation, then employees at various levels of the firm will work towards a
common strategic mission of obtaining customer satisfaction. Needs and satisfaction of
customers will be the top priority for Planet Preserve. This will benefit the company in
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the form of better quality, well earned profits and well received products (Nicholson and
Oliphant, 2014). Adaptability- This is another advantage of marketing orientation. Adaptability is
concerned with adopting strategies and undertaking actions to adapt to the feedback
received from the customers (Kokemuller, 2015). With this, Planet Preserve will be able
to make adjustments in the products and services as desired by the customers. Generally,
the companies whose focus is on the product, become to busy on research and
development. In this processes, the lose the information about the customers need and
wants. However, by adopting marketing orientation, Planet Preserve will be able to focus
on product research and development after considering the needs and wants of
consumers.
 Competitive advantage- Marketing orientation will provide Planet Preserve with the
benefit of competitive advantage. The competitors of the firm will put too much efforts
and time into product development and engineering. Therefore, they will be less equipped
in developing solutions that appease customers (Armstrong and et.al., 2014). In contrast
to this, at the same time, Planet Preserve will develop products to suit the customer needs
as it would be possessing knowledge about what customers want. Therefore, the fruit and
preserve manufacturing firm will be able to better market its products in a more
persuasive manner.
Along with the benefits, marketing orientation also brings certain drawbacks for firms. The
following will be costs of marketing orientation for Planet Preserve: Less product differentiation- Planet Preserve will have to bear the costs of marketing
orientation in the form of less product differentiation. As the firm will spend more time
on consumer interaction and research, it will not be able to focus on fine- tuning the
features of its products (DeWan and et.al., 2013). This will give its competitors a chance
of developing their products with more distinct features.
 Lack of predictability- Another cost of marketing orientation is that it will make it
difficult to carry out advanced planning on product development. This is because, if
Planet Preserve will adopt marketing orientation, it will respond to the perpetual changes
in the desires of customers through its solutions (Rudd and Mills, 2011). Therefore, in
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order to have an efficient response time, Planet Preserve will have to bear the costs of
developing strong technology infrastructures as well as clearly define communication
channels.
b)
Various elements of marketing process required
The following are the various elements of marketing process required by Planet Preserve: Analysis of market and environment- Marketing process requires Planet Preserve to
analyse market and environment. It will involve user of strategic tools such as PESTLE,
SWOT, Porter's Five Forces Model, value chain analysis etc. PESTLE will help in
analysing the various factors of external environment which will impact activities of
Planet Preserve. Similarly, SWOT will help in reflecting upon internal factors such as
strengths and weaknesses of the company (Nufer, 2015). At the same time, it will also
help in determining the opportunities and threats in the market. Porter's five forces model
can be used by Planet Preserve for finding out industry attractiveness. Identification of target market- This is another element of marketing process which is
concerned with identifying the target market. Planet Preserve will have to identify the
population in the area for whom it will manufacture its products. This will be the group
of customers on whom the marketing efforts will be concentrated (Taylor and et.al.,
2011). More importantly, a well defined target market will form the first element of
marketing strategy of Planet Preserve. Setting marketing objectives- Marketing objectives form an important element of
marketing process. These are the goals that are set by a firm while carrying out promotion
of its products and services to potential customers (French, 2012). Marketing objectives
are required by Planet Preserve for driving the business strategy forward.
 Elements of marketing mix- In the marketing process, Planet Preserve has to deal with
the elements of market mix. This includes aspects such as product, price, place and
promotion. Planet Preserve has to focus on products that it is manufacturing. It also has to
fix prices as per its target population (Hershey and Wood, 2011). Further, the place and
promotion are to be set accordingly.
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Proposing segmentation criteria for jams and preserves
Segmentation criteria to be used for jams and preserves produced by Planet Preserve can
be proposed. Marketing segmentation can be referred to as a marketing strategy through which
broad target market can be divided into subsets of consumers or countries (Robertson and Kelly,
2013). There are various types of segmentation such as geographic segmentation, demographic
segmentation, behavioral, psychographic, occasional, cultural segmentation etc.
Demographic segmentation for consumer market
For jams and preserves, demographic segmentation can be proposed to Planet Preserve.
This segmentation is based on variables such as gender, age, occupation, income, educational
level etc. Planet Preserve can segment its customers on the basis of income and age. By using
age as a segmentation criteria, jams can be prepared for three distinct age groups, infants,
adolescents and adults. This segmentation criteria will help Planet Preserve to cater to the needs
o three distinct groups (Atwong, 2015). Apart from that, it can also segment customers on the
basis of income. In this regard, jams and other preserves can be prepared for low, middle and
high income groups.
Psycho graphic segmentation for consumer market
Planet Preserve can also used psychographic segmentation for jams and preserves.
Customers can be segmented on the basis of their interests, values and attitudes (Wang, 2007).
Therefore, separate jams can be prepared for people who love to imbibe the traditional values
and tastes and for them who are fond of new flavours.
Segmentation on the basis of location for caterer/ hotelier market
Planet Preserve can segment caterer or hotelier market on the basis of location. In this
regard, it will have to consider distance from the vendor as a critical factor (Deshpande and
Rundle-Thiele, 2011).
Behavioral segmentation for caterer/ hotelier market
Planet Preserve can also segment its market on the basis of patterns of purchase behavior. This
will comprise of considering the following behavioral characteristics such as: Usage rate Buying status: Regular, first time, potential customer
 Purchase procedure: Sealed bids, negotiations etc.
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Targeting strategy to be used by Planet Preserve
Targeting strategy for consumer market can be proposed for Planet Preserve. Targeting is
concerned with selecting a segment to which promotional message is to be communicated. There
are various types of targeting strategies such as undifferentiated, differentiated and multi
segment targeting (Abdullah and Ismail Ahmad, 2010). Planet Preserve can use multi segment
targeting strategy. This type of targeting is concerned with focusing on two or more well defined
market segments and developing different strategies for them. Multi- segment targeting offers
various benefits. However, it can be costly for Planet Preserve. More than one promotional
message can be designed by the firm. Each message will communicate different benefits of its
products.
(c) Development of Planet Preserve products to sustain competitive advantage
Planet Preserve can develop its products for sustaining competitive advantage. This can
be done by adopting several methods.
Cost leadership
This requires a company to produce and sell its products at a lower price as compared to
its competitors (Bose, 2010). With this, a low cost leader like Planet Preserve can earn profits
with above average margins.
Focus on a narrow target market
Planet Preserve can develop products to sustain competitive advantage by focusing on a
narrow segment. By targeting a segment which is less vulnerable to substitutes, Planet Preserve
can become the leader of a niche. Focusing on a narrow target market enables the manufacturing
firm to contain costs (Cook, 2007). This will further make it easy for Planet Preserve to promote
its products and services in that media which focuses on its target groups.
Developing customer intimacy
The products can be developed to sustain competitive advantage by focusing on customer
intimacy. By knowing about the customers, the offerings can be tailored according to them. This
is because, by developing intimacy with the customers, the firm will be able to anticipate what
the customers want and how they want it. It will also be able to identify the issues faced by
customers (Dooley, Jones and Iverson, 2012). Following this, Planet Preserve will be able to
develop products accordingly which will provide it with competitive advantage.
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Focusing on quality
This is another method that can be used by Planet Preserve for sustaining competitive
advantage. Since Planet Preserve deals in jams and other eatable preserve products, quality is the
first aspect that customers will look for. Making quality food products will not only win their
trust but will also set Planet Preserve distinct from its competitors (Harridge, 2009).
(d) arranging distribution for food products to provide convenience
Distribution can be arranged by Planet Preserve for its food products in such a manner
that it provides convenience. As food products are perishable commodities, it is important that
Planet Preserve pays attention to the distribution. The food products should reach customers in a
fresh state. Speed of delivery and intensity needs to be focused upon (Payne and Pressley, 2013).
A number of factors are required to be considered while deciding whether Planet Preserve want
to seek a narrow or wide reach. If the customers are likely to switch to other brands, then Planet
Preserve will have to focus on intensity of distribution. Hence, it should distribute its products to
the store at an intensity that they are always available to the customers.
In order to arrange distribution to provide convenience, it is important that Planet
Preserve focuses on wholesalers and retailers. For selling its food products, the firm can use
intermediaries such as wholesalers, hotels, street stores etc. The element of convenience will be
incorporated by focusing on inventory management (Henley, Raffin and Caemmerer, 2011).
Better inventory management will ensure that the products of Planet Preserve are distributed in a
convenient manner. Moreover, preservation techniques will have to be enhanced as these will
provide assistance to the distribution strategy adopted. Apart from that, a food broker can be
hired by Planet Preserve who could sell the products to stores.
(e) How prices are set to reflect objectives and prevailing market conditions
Prices are set to reflect the objectives of Planet Preserve as well as prevailing market
conditions. The objectives of Planet Preserve are:
 To become a trusted supplier if preserved food products
 To provide quality products to the customers
 To provide the customers with value for money
 To treat its employees well
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Corresponding to the objectives, it is important that Planet Preserve sets its prices in a
such a manner that it is able to provide value for money to its customers as well as to keep its
employees satisfied. For this, it can use the strategy of absorption pricing. Through this method,
prices are set with a view to recover all the costs. Therefore,the price of the product will include
variable cost of each item along with a proportionate amount of fixed costs. However, market
conditions are also important to be considered (Simon and Gentry, 2014). While analysing the
market conditions, it can be said that there is high competition in this industry. A number of
established firms provide preserved food products. Moreover, while buying food products,
people buy them from a trusted brand. Therefore, it highlights high level of competition in the
market. Moreover, a number of substitute products are available which attract consumers.
Considering the market conditions, Planet Preserve will have to set prices in a way that it
is able to penetrate the market and assume a distinct position. For that, prices will have to be set
by following a penetration pricing strategy (Richards, 2015). Using this strategy, Planet Preserve
can enter the market by setting a low price in relation to the competitors. This will help in
attracting buyers. The benefit of this strategy will be that the firm will be able to raise awareness
and get people to its products.
(f) Macro and micro environmental factors influencing marketing decisions
Here are various macro and micro environmental factors which influence marketing
decisions o Planet Preserve. These can be discussed below:
Macro environmental factors
The following are the factors of macro environment which impact marketing decisions of
Planet Preserve: Political factors- This group of macro environmental factors consists of aspects such as
tax policies, government contract, government issued safety regulations, prevailing
political conditions etc. all these impact the marketing decisions of Planet Preserve. If the
political conditions are not stable, the organization will be negatively impacted
(Nicholson and Oliphant, 2014). Similarly, any policies formulated by the government in
the area of manufacturing o preserved foods, will directly affect marketing decisions of
Planet Preserve.
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 Economical factors- Marketing decisions will also be influenced by the economic forces.
During the times of recession, people either lose jobs or are worried about losing them.
As a result of this, the consumers become less willing to spend their disposable income.
Therefore, Planet Preserve will have to carry out its marketing in such a way that
consumers are persuaded to buy its products. In contrast to this, if the economy is in
boom, the consumers will be willing to spend (Nufer, 2015). In this situation, marketing
decisions will have to be taken with an objective of maximizing profits. Social and cultural factors- Marketing decisions will be impacted by the core cultural
beliefs of the people living in a nation. Changes in these beliefs will affect consumer
purchase decisions. The marketing decisions of Planet Preserve will have to consider the
preferences of social class to which the firm is catering. Technological factors- Needs and wants of consumers are dramatically impacted by
development of new technology (Hershey and Wood, 2011). This shift, which is brought
about by the technological advancements, will have to be taken into account by the
marketing team of Planet Preserve while making decisions. Legal factors- These factors comprise of the legislations, laws and regulations which are
formulated by the statutory bodies of the nation (Taylor and et.al., 2011). Laws on
advertising have to be obeyed while carrying out promotion. Similarly, the laws on
manufacture and sale of preserved food products are also to be complied with. Environmental factors- These days consumers are becoming increasingly conscious
regarding impact of a firm's activities on environment. They support the organizations
which take care of environment, community and believe in sustainable development
(Deshpande and Rundle-Thiele, 2011). Therefore, Planet Preserve will have to consider
these during marketing decisions.
Micro factors
The following micro factors influence marketing decisions of Planet Preserve: Employees- A skilled and competent workforce leads to better and informed decision
making (Abdullah and Ismail Ahmad, 2010). Suppliers- The suppliers affect marketing decisions as they provide raw materials to the
firm.
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 Customers- This is another group of micro environment factors which affect decision
making at Planet Preserve (Dooley, Jones and Iverson, 2012).
(g) Analysing additional elements of extended marketing mix
The following are additional elements of extended marketing mix: People- These comprise the workforce of Planet Preserve. It is important to have the right
kind of person appointed at right position (Payne and Pressley, 2013). The competency,
skills and qualities of people working at Planet Preserve will also be covered under this
element. Process- This element comprises of the various process that are adopted by Planet
Preserve for carrying out its operations. The process are required to be efficient and
effective at delivering then required product on time (7Ps of Marketing, 2015).
 Physical evidence- This is the location where the products of Planet reserve are available
to the customers. The level of comfort and attractiveness of the store makes a difference
to the user experience (DeWan and et.al., 2013).
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TASK 2
(a) Marketing Mix for business expansion
The strategies of marketing mix is set of tactical and controllable tools, which are used by
company to produce desired response from its targeted market (Armstrong, 2014).
Leslie's business needs the strategies of marketing mix to expand the business to break
into the lucrative department store market. The elements of marketing mix are categorized in
four groups which are described below:
 Product- For the expansion of business, Leslie can offer more products to attract the
customers and increase the profitability of business. In present business, she only started
fruit and preserve manufacturing. However, to expand the business she can supply
vegetables, dry fruits and fruit juices at city department store. To compete others she can
offer good quality of fresh vegetables and fruit juices.
 Price- Leslie can face many competitors who are also supplying the fruits and vegetables.
So, she can implement competitive pricing strategies to compete with others. With the
help of competitive prices Leslie can increase sales and customers.
 Place- To deal with this element in relation to expand the business, Leslie can establish
her own new physical outlet in city department store (Henley, Raffin and Caemmerer,
2011). With the help of physical outlet she can attract more customers and she can also
launch her website.
 Promotion- Leslie can use advertisement mediums like TV and radio and she can also
distribute the pamphlets with newspaper.
Marketing mix strategies for customers and small retailers
Leslie can develops the strategies of marketing mix to attract both customers and small
retailer. The strategies for business to business and business to customers are described below:
Marketing Business to Customers Business to Business
Meaning The products and services are
provided directly to the individual
customers.
In this category the products and
services of Planet Preserve are
marketed to the other businesses.
People Individual customers of Planet
Preserve are involved in this
category (Bowie and Buttle, 2011).
Retailer and other companies are
involved in this category.
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