Marketing Principles Report

This marketing principles report uses Aldi as a case study to examine various aspects of marketing. It covers the elements of the marketing process, the benefits and costs of a marketing orientation, macro and micro environmental factors influencing marketing decisions, buyer behavior, and positioning strategies. The report also delves into product development, distribution channels, pricing strategies, promotional activities, and the extended marketing mix. A SWOT and PESTLE analysis of Aldi is included, along with a comparison of B2B and B2C marketing and domestic versus international marketing. The report concludes by summarizing the key findings and their implications for Aldi's overall marketing strategy.

MARKETING PRINCIPLES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1: The various elements of the marketing process...................................................................1
1.2: Benefits and costs of a marketing orientation......................................................................3
TASK 2............................................................................................................................................4
2.1: Macro and micro environmental factors which influence marketing decisions..................4
2.4: How the Buyer's Behaviour Affects Marketing Activities..................................................6
2.5: Positioning strategy for chocolate burger............................................................................7
TASK 3............................................................................................................................................8
3.1: Product development to sustain the competitive advantages...............................................8
3.2: Distribution channels provide by halo company for customer convince.............................8
3.3: Pricing strategy for the new product....................................................................................9
3.4: Promotional activity is integrated to achieve marketing objectives....................................9
3.5: Additional elements of the extended marketing mix.........................................................10
TASK 4..........................................................................................................................................11
4.1: Marketing mix for consumer market segment...................................................................11
4.2: Illustrate the differences in marketing products and services to businesses (B2B)
consumers (B2C).......................................................................................................................12
4.3: Explaining difference between international and domestic marketing..............................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

ILLUSTRATION INDEX
Illustration 1: Elements of marketing process.................................................................................2
Illustration 2: External factors.........................................................................................................6
Illustration 3: Additional elements of the extended marketing mix..............................................12

INDEX OF TABLES
Table 1: SWOT analysis of Aldi Company.....................................................................................4
Table 2: Marketing mix comparison between rural and urban segment.......................................11
Table 3: Comparison between domestic and international marketing...........................................12

INTRODUCTION
Marketing principles plays an important role in competitive environment because with
the help of these principles, organisations can easily decide their planning and strategies. It also
includes the branding image of company and how firm promotes their new products and services
into market (Jobber and Ellis-Chadwick, 2012). Furthermore, it is a planning process where
company decides the price, place and promotion strategy for their new products and also
determine their target market. The present report is based on Aldi Company which is a British
organisation leading in retailing. Headquarter of this firm is located in Germany (Essen) and it
sells food, beverage and sanitary articles (Sheth and Sisodia, 2015). Mission of this organisation
is based to provide high quality services to their all customers. For this, company recently
opened its 55 new shops in the UK (Aldi, 2016). By doing such activities, manager of the cited
firm creates a positive relationship with their customers. This report also includes the elements of
marketing process and how management department of this Company maintains the chain of
demand and supply.
TASK 1
1.1: Various elements of marketing process
The elements of marketing are helpful for company because they accomplish goals and
objective of the organisation. By using marketing elements, senior management of marketing
department can easily plan strategies for the company (French, 2010). There are various
elements of marketing process which are used by Aldi Company and are as follows:
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Marketing strategy
Aldi Company’s marketing strategies are based on changing behaviour of customers. For
this, management department of organisation take time to time feedback from their customers
and according to their demands and preferences, department plan and program their new
strategies (Nwankwo and Gbadamosi, 2010). By following these activities, company can easily
understand the changing behaviour of their customers and provide the best services to firm.
Manager of this organisation divide their all departments on the basis of suitable segmentation.
By doing this activity, they develop efficiency of their employees and also manages the
coordination in their internal department.
Tactics and control
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Illustration 1: Elements of marketing process
(Sources: Various Elements of the Marketing Process, 2014)

Usually, this work is done by the planning department of Aldi Company. For this,
employees plan an attractive combo for their customers in order to gain their attraction (Various
Elements of the Marketing Process, 2015). For example, Aldi Company provides different kinds
of schemes like buy one get one free, up to 30% off on sanitary items and in the winter; they also
provide big discount offers on their cold food and beverage items. Further, tactics are important
for company in earning revenue and it also raises the percentage of customers. By using these
schemes, company can easily gain the attraction of their customers and raise profit as well.
Planning
It is a third element in making planning where senior management authorities of the
company plan a marketing process. By using appropriate planning, firm can easily achieve their
all goals and objectives on time. In this element, planning department of Aldi Company decide
the price, place, promotion and target market for new products (Henley, Raffin and Caemmerer,
2011). For better development, managers of Aldi take time to time feedback from all the
departments. According to their reviews, firm changes their future planning which are based on
their internal management environment.
1.2: Benefits and costs of a marketing orientation
Marketing orientation is a model which is based on company’s products, services and
how organisation fulfils the demand of their customers on time. (Armstrong, Adam and Kotler,
2014). Aldi is a fast growing company so it is important for its management to evaluate the cost
benefits. By using cost orientation, company can easily analysis its cost operation in each
department. By using market orientation, firm gets lots of benefits and are as follows:
Building customer values
Aldi Company fulfils the demand of its customers and by doing this, firm gains the trust
of their clients. Furthermore, it helps them to create a positive relationship with them (BOSE,
2010).
Respond to demand
By using market orientation, firm can easily identifies the likes and dislikes of their
customers and planning department of Aldi Company plans their strategies according to their
expectation (Donovan and Henley, 2010). By this, organisation raises the level of demand and
increases their brand image as well.
Cost impact in marketing orientation
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The negative point of marketing orientation is that it is so expensive. Every year Aldi
Company spends lots of money in market research and development. Due to this, financial
structure of organisation goes down and managers cannot manage their all sections.
TASK 2
2.1: Macro and micro environmental factors which influence marketing decisions
Marketing environment of Aldi Company is based on the relationship between
organisation and their customers (Kim and Hyun, 2011). Further, it also includes the macro and
micro environment of organisation.
Macro environment of company is based on some factors and they are like; its
economical, social, political elements. For this, Aldi Company uses PESTLE framework which
helps to analyse the external factors that affect its business. Furthermore, micro environment
includes the strengths, weaknesses, opportunities and threats of company. For the same,
organisation uses SWOT framework to examine the internal and external situation of the
organisation:
SWOT analysis on Aldi Company
Table 1: SWOT analysis of Aldi Company
Strength
 Aldi Company is highly diversified and
for this, firm planning and development
department provides different kinds of
healthy diet products to their
customers.
 This company has strong market
orientation. Due to this, management
department can easily fulfil the
expectation of its customers.
Weakness
 The shipping cost of this organisation is
so high. Due to this, other country
avoids importing sanitary material from
this firm.
 This organisation spends lots of money
on marketing and advertisement
activities every year. For the same, the
marketing cost of company goes high
and profit of company decreases.
Opportunities
 Company recently opened its 55 new
shops in the UK and also adopted
digital marketing. By this, they can
Threats
 Due to government interference, the
producing cost of products and services
goes high.
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easily expand their distribution channel.
PESTLE analysis on Aldi Company
Political factors
The government of the UK changes their government policies on regular basis as per the
requirement. Due to this, misunderstanding increases which are related to the tax and other
policies. In the UK, labour income is so low due to this; the percentage of unemployment goes
high.
Economic factors
Aldi Company follows all the rules and regulation which are provided by the UK
government (Powers and Loyka, 2010). For example, organisation recycles all waste materials
and avoids using plastic bags at workplace and in their packing material.
Social factors
The lifestyles of customers are now changing and they are now more heath conscious.
For this, company changes its food products and includes healthy diet items in their stores.
Technological factors
Aldi Company recently develops its website for promotion. By using online website,
customers can easily book their orders and get all information related to products and services of
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Illustration 2: External factors
(Sources:Ingenbleek and Van der Lans, 2013)

Aldi Company (Ingenbleek and Van der Lans, 2013). On other hand, organisation also uses
digital marketing for its promotions activities.
Legal factors
Aldi follows all labour and environment laws which are provided by the UK government.
Environment factors
Organisation recycles all waste materials and changes it into bio gas. Moreover, for
transportation activities, this organisation uses battery vehicles and reduces the negative impact
of air pollution.
2.2, 2.3: Segmentation criteria to be used by Aldi organisation with target strategies
Market segmentation is a new concept where company divides its all departments into
sub sectors and according to this; they select deserving and required employees. For better
development, Company launches its new products in food department. For the same, Aldi
Company has chosen chocolate burger as its new product (Churchill and Iacobucci, 2010). By
dividing all departments, management system of firm can easily put focus on each section. The
main motive of Aldi Company is based on to provide high quality products to its customers. For
this, mangers put concentration on customer’s satisfaction rather than product development.
Demography segmentation
In this, Aldi Company divides its customers as per age, gender, taste and income criteria.
By doing this, senior authority of company easily sets their focus on products and provides the
best services to their customers.
For example, for its new product chocolate burger, organisation put target on youngster
and children. The main reason behind this is their age group which shows willing to try new food
items and children like more chocolate items as compared to elders. So, company can easily sell
its new products and for this; firm changes its packing style as well. The packing department of
organisation uses attractive boxes and handmade paper for packing. So, customers can use this
new chocolate burger as a gift item (Zeithaml, Bitner and Gremler, 2010). Moreover, for better
marketing, management department uses digital marketing and also creates separate website.
This helps them to easily gain the attraction of their customers and raise profits.
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2.4: Buyer's Behaviour affecting marketing activities
Buyer’s behaviour analyses the requirement of client for particular product and its use.
Every year, Aldi Company launches so many products where some are based on food items so
some other products are related to sanitary items. But, all services and products of the cited firm
do not able to grab the attraction of customers. The major reason behind this is that customers
always purchase items which are profitable for them.
Major reasons which affect the purchasing behaviour of customers are detailed as follows:
Marketing activity
Good promotion plays an important role in marketing activity because with the help of
this, organisation can easily attract customers (Lovelock, Patterson and Wirtz, 2014). For this,
Aldi Company uses digital marketing and promotes new food products and other items through
social media sites. Furthermore, planning and development also use other methods of promotions
like sandwich man, advertisement on television and banner.
Culture and social factors
It is very important for Aldi Company to understand the needs and desires of their
customer which are related to culture of their country. For example, in the UK, it is very
common to invite friends and relatives for lunch and dinner. Further, Brazilian people love to
give gift items. For the same, they can use Aldi Company’s new product as gifts and organisation
also change its packing style and make their food items more creative (Gummesson, 2011). By
this, company creates a positive relationship with its customers.
2.5: Positioning strategy for chocolate burger
Chocolate burger is a new product of Aldi Company so it is important for organisation’s
development department to plan appropriate strategies. Major strategies which are followed by
firm for new product are as follows:
Channel differentiation
For market expansion, company has recently opened 55 new shops in the UK.
Management department can easily provide new products to all customers by making products
available at all the stores located in different parts. Moreover, for better customer relationship,
organisation opens its new website as well. By using this website, customers can also book their
orders.
Price differentiation
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In this, Aldi Company provides new chocolate burger at different prices categories. By
doing this, company attracts its customers and maintains brand image as well.
Product differentiation
Aldi Company launches new chocolate burger for its customers. Further, packing
department changes their packing style of their product too (De Mooij, 2013). By following all
these factors, firm attracts customers and increases its profit.
TASK 3
3.1: Product development to sustain the competitive advantages
Aldi Company’s marketing strategies are based on three factors and they are; leadership,
product differentiation and focus on the demand and expectation of customers. For the same,
organisation selects cost leadership and maintain financial structure in their firm. For better
development, company launches its new chocolate burger at different prices. This helps to easily
attract customers and maintain their brand image as well. In product differentiation, company
changes its packing style and uses hard boxes and handmade paper for packing material
(Czinkota and Ronkainen, 2012). The main benefit of this is that by using these materials,
products look good and attractive thereby customers buys it instantly and can use it as a gift item
as well. As per the last factor, company management put their focus on customer’s demand and
expectations of the customers. For this, management department take time to time feedback from
its clients and according to their reviews, implement change in their products and services. By
taking feedback, company creates a positive relationship with their customers and raise its brand
image in competitive market. The main reason behind this feedback process is that customers are
the back bone of organisation and their suggestions and recommendations prove to be great
assistance in the development of the company. By using this process, firm can easily gain the
trust of their clients as well.
3.2: Distribution channels provide by Aldi Company for customer convince
Distribution channel plays an important role in the business. By using different channels
for promoting goods and services, Aldi Company can easily provide convenience of availability
to their customers. By using appropriate distribution channel, organisation can create visibility
and accessibility for their customers. Further, it also increases the sales of company’s products
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