Marketing Principles: Application in Business and Market Strategies

This report delves into the core principles of marketing, examining their application within business ventures to enhance operational efficiency and achieve competitive advantages. It explores various elements of marketing, evaluating the benefits and costs of a marketing orientation, and analyzing both macro and micro environmental factors that influence marketing decisions. The report covers market segmentation strategies, target market selection, and the impact of consumer behavior on marketing activities. It also discusses product development for sustained competitive advantage, distribution processes, pricing strategies, and promotional activities. Furthermore, it analyzes the extended marketing mix, planning marketing mixes for different consumer segments, and differentiating between business-to-business and business-to-consumer marketing, using Vodafone UK and Starbucks as case studies. Finally, it highlights the differences between international and domestic marketing strategies.

MARKETING PRINCIPLES
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Executive Summary
The study shows that in what way marketing principles are set in business ventures for
better operation of business. This study reflects on different elements of marketing. It
also shows benefits as well as costs of marketing orientation for an organisation.
Several macro as well as micro environmental factors are discussed in this study that
can impact directly on marketing decisions. The study shows segmentation criteria for
different markets. The study shades light on targeting strategy for a product and
services. In what way, purchasers are decisions are affected are conveyed in this study.
New strategy for positioning particular product and services are discussed in the course
of work. In what way, products are developed for sustaining competitive advantages in
business sectors. Distribution process and price of products and services need to be set
properly for better conduction of business. In what way, promotional activities are
undertaken by business sectors are described in this study. It mentions about marketing
mix that has been done for different markets. In what way, it has proved beneficial has
been clearly depicted in this study. Several differences regarding products and services
are portrayed in this study. Differences between international marketing as well as
domestic marketing are explained through this study.
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Table of Contents
Introduction...................................................................................................................... 4
Task 1.............................................................................................................................. 4
1.1 Explaining several elements of marketing process....................................................4
1.2 Evaluating benefits and costs of marketing orientation for a venture.........................5
Task 2.............................................................................................................................. 6
2.1 Macro as well as micro environment factors affecting decisions of marketing...........6
2.2 Proposing segmentation processes for products in markets......................................7
2.3 Choosing target strategy for particular product or service..........................................7
2.4 Demonstrating in what way, behavior of purchaser impacts on marketing activities..8
2.5 Proposing new positioning for a particular product....................................................8
Task 3.............................................................................................................................. 9
3.1 Explaining in what way products are developed for sustaining advantages of
competition.......................................................................................................................9
3.2 Describing in what way, arrangement of distribution is done for providing
convenience to customers............................................................................................. 10
3.3 Explaining process of setting prices to show objectives of ventures........................11
3.4 Illustrating in what way, promotional activities are integrated to attain objectives of
marketing....................................................................................................................... 12
3.5 Analysing elements of extended marketing mix.......................................................13
Task 4............................................................................................................................ 14
4.1 Planning marketing mix for separate segments in consumer markets for Vodafone
UK.................................................................................................................................. 14
4.2 Elucidating differences in products marketing to businesses instead of consumers
for Vodafone UK.............................................................................................................15
4.3 Showing in what way and why international marketing of Vodafone differs from that
domestic marketing........................................................................................................16
Conclusion..................................................................................................................... 17
Reference List................................................................................................................ 18
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Introduction
Marketing is an essential part of business that needs to be done suitably for ensuring
profitable results in business. It is important that business ventures need to adopt
different principles for marketing that are unique. This will help in gaining competitive
advantages in both international as well as local market. Every business enterprise had
to understand their position in market before undertaking any ethics for businesses.
Competition has to be suitably maintained in order to for attaining success in business.
For convincing customers and creating brand awareness among them, companies need
to develop new processes of marketing. This will help in maintaining their position in
market. In this study, organisations like Vodafone UK and Starbucks are being taken as
an example for understanding processes of marketing. In what way, marketing mix is
being conducted for gaining advantages in competition are also clearly depicted in
following study.
Task 1
1.1 Explaining several elements of marketing process
In the opinion of Sheth and Sisodia (2015, p.45), the different tactics are applied for
marketing the product by the company. Starbuck is a famous Coffee maker whose
business factor is analysed as follows:
The first factor is to analyse the situation of market. Here, situation refers to the
perception of customer toward the product. The Starbuck has analysed that the process
of making product should be present in front of public, so their belief about the
transparency of policy of the company become stronger. Therefore they advertised
about their manufacturing process on their website in a brief manner.
As considered by Frederiksen et al. (2013, p.17), the loyalty of company should be
known to people and the service they provide should be customer oriented. The
customer should not get the feeling that company is trying to sell the product for their
own profit. Thus, the psychology of customer should be understood by the sales
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executive. There is one point where a customer is compelled to think about purchasing
the product.
Some element is mentioned in the given context where a sales person can pressurize
customer by telling the deadline of the low price of a product and also mentioning the
comfort of the person has relation with customer. As considered by Armstrong et al.
(2014, p.67), personal needs of customer play an important role for the sales person
when he is selling the product, but he has to inter relate the benefit of product with
customer need.
In the opinion of Nowak et al. (2015, p.2406), market research analysis is another
important element for to give the feedback of customer’s needs. Once the analysis of
market has taken place, the next thing comes in the picture is approach toward the
undesired customer. Nowadays, sales world has expanded its wing to everywhere that
even people are aware of the traditional way of selling. So, rather hard core selling of
the product, an executive should make good relationship with the customer for a long
run.
1.2 Evaluating benefits and costs of marketing orientation for a
venture
In the opinion of Walker (2014, p.17), marketing orientation comprises of those
strategies which would lead to a good relationship with a customer and increase their
profitability margin. It becomes important for the organization to evaluate the cost and
benefit of a product. These two terms are interrelated to each other. As considered by
Cooke and Dayton (2015, p.132), the customer always wants the best quality of the
product so that his expenditure on a product will be useful. In the mentioned context, the
hard core selling for gaining the profit and selling the car as per the comfort of a
customer are explained nicely. The theory is applicable for the organisation also.
In the opinion of Challagalla et al. (2014, p.15), there is two type of company who sell
the product for gaining the profit and selling the product for customer satisfaction.
Evaluation of cost includes cost of designing the product, product quality, transportation
charges and service tax etc. The customer will appreciate company’s product if he is
satisfied with its usage. Sometime company increase the quality of product to reach the
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customer desire but it has to increase the cost as well. Above context also explain that if
the sales executive is selling for gaining profit only and customer understand seller
perception then information about this strategy of a company will be distributed by the
customer to his relative and friend lead to the bad name of an organisation.
Task 2
2.1 Macro as well as micro environment factors affecting decisions of
marketing
Macro elements affecting decision of marketing: Starbuck, which has started its journey
from 1971, become able to establish itself in the market of UK. The dynamic nature of
market with changing time has to be analysed with the help of market analyst. Starbuck
has started a program of getting reward points earn from expenditure by a customer
and from that points, he/she will get free drink and food. This methodology will attract
that customer who spends more money or they are very rich. The market is flooded with
people who earn average and spend limited. These people become a macro factor that
can influence Starbuck’s business. Technology becomes one important element for the
growth of an organisation. Starbuck already has taken the help of social network i.e.
Facebook, for declaring about the points and reward. Therefore, by a social network, a
company has increased the consumption of its product.
In the opinion of Hastings and Domegan (2013, p.14), the geographical element of
some place is an important reason for the business of an organisation. The organisation
should aware of the fact whether its product has been used in the rural area also. That
would enhance the business with new experience of what people of a rural area like in
the product.
The age of people also affects the business of the organisation because of their choices
in the product. An old person might not like much the hot coffee, because of health
issue. It is a responsibility of organisation to plan their services as per the age of people.
The employee, investor, and shareholder of an organisation are the micro element
which influences the business of a company. An employee of a company sells the
product, deal with customer and handle the management team, so they influence the
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economic condition of the organisation. The company has to hire a skilled worker, in
case company is dealing with high technical business, has to give high salary to their
employee.
The competitor company increases the demand of customer about the product with its
quality and benefit. Thus, the satisfaction level of customer increases which put the
organisation in pressure.
2.2 Proposing segmentation processes for products in markets
In the opinion of McNeil et al. (2015, p.93), the segmentation has a different form.
Usually, a market can be segmented socio economically, demographically,
geographically and psycho graphically. The best example is segmentation of Starbuck
who analysed the market in a proper way. The socio-economic segmentation is a
division of market-based on the financial status of people and their income. The
business of Starbuck will grow if he sells his product without confining itself, prosperous
people. It should put some small shop around the city so that average earning people
can take their services. In the opinion of Dubuisson (2013, p.685), demographic
segmentation is dividing the market based on gender, community. Therefore, when
Starbuck is expanding its business outside of UK then it has to understand the taste of
people of that particular community toward the product.
The psycho graphically division of market is most important and complex element for an
organisation to implement. The company understands or analyse the thinking of people
toward a product, what kind of attitude they are possessing for the services of a
company.
2.3 Choosing target strategy for particular product or service
In order to accomplish the target, an organisation is making some strategies for
attracting its customer and increases the consumption of its good and profitability. It has
already discussed earlier about the segmentation of Starbucks. This itself is a form of
strategy. Starbuck should start the Happy Hour scheme for its consumer and it should
be like that if some customer is taking coffee in between 4 pm to 6 pm then he will get
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the 20 to 25 percent discount. This 20 to 25 discount will vary with the last three-month
relationship of a customer with Starbuck.
This has already mentioned that segmenting the market is a form of strategy to attract
the customer. Starbuck should start their business all over the world without confining
itself in the barrier of border and community. Many Asian countries have good market
for coffee, so the company should invest in this market for expanding the business. The
company through website and social network inform its consumer and other people
about the new changes take place in their product.
2.4 Demonstrating in what way, behavior of purchaser impacts on
marketing activities
In the opinion of Kim et al. (2014, p.42), there are different kind of behavior a customer
possesses toward the organisation and its product. Consumer behavior affects the
strategy of the company and the quality of a product. As considered by Migliori et al.
(2014, p.91), consumer behavior varies as per his lifestyle, geography and past
experience with an organisation. The product consumption increases, for example, the
rate of Starbuck’s coffee decrease, the people who urged to drink coffee in the past but
not able to buy because of its high cost, would suddenly go to consume the Starbuck
product. Their behavior would change suddenly because of a rate of coffee, motivate
more people to attach with an organisation and enhance their business. Past
experience of a customer has the taste of the services of organisation and updating
themselves with information of a company. These old customer sometime do
investment with an organisation and become the shareholder of a company.
The family of consumer and his background influences the business of a company. A
person would not entertain the product if he has no knowledge about the product.
Suppose Starbucks has a business of coffee but it is unique from coffee normally made
in a small shop, so if a person is lacking in knowledge then he will compare Starbuck
coffee with street coffee and his approach will also be like that.
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2.5 Proposing new positioning for a particular product
According to Johnston and Marshall (2016, p.669), Positioning of products need to be
done in such a way that it will help in gaining extra benefits in business. Starbucks has
launched new services of Happy Hours, where people will get huge amount of discount
if they visit outlets of Starbucks at a particular time. Positioning of such services needs
to be done suitably so that people get attracted and come to enjoy those services.
Target market has been set for this service and it is positioned in every outlet of
Starbucks in city. As a result, when people will get to know about such service, they will
be eager to visit outlets of this company. Anderson et al. (2014, p.210) commented that
target market needs to access new product or service that are initiated by any venture.
Based on this, products or services are required to be placed in market.
Young generation has been targeted for this service that is why; positioning of such
service is being done right in that time when youth can access it. This will help in
attaining extra advantages in business and competitive advantages can be gained
easily by this entity. Positioning strategy is completely based upon demand and
requirements of customers. This company has considered these criteria so that
satisfaction can be provided to people in large amount. This will help in maximising
profits of this company and build a good reputation in front of customers. Moreover,
proper positioning will lead to gain loyalty of users towards this brand (Starbucks Coffee
Company, 2017).
Task 3
3.1 Explaining in what way products are developed for sustaining
advantages of competition
Being a marketing manager of HSBC, it is significant that products of bank need to be
developed in such a way, that it would help in sustaining competition in market. Different
innovative and creative services, as well as wide range of products, are required to be
provided to people in order to gain their attention. Financial products of HSBC includes
home loans, insurance, net banking and ATM facilities. These products have to be
developed in such a way that people finds interest in using these services. Munar et al.
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(2014, p.386) mentioned that product design has to be done in an attractive way for
attracting customers towards a particular venture. In products of HSBC, unlimited
longevity is provided so that attention of people can be sought successfully.
Moreover, needs of customers, their demands and expectations are required to be
understood so that extra advantages can be gained in businesses. This bank can
provide several types of account facilities for people that would help to indulge more
customers under their services. It is important for every enterprise to improve their
products quality in accurate way so that competition can be maintained (Walker, 2014,
p.6). This bank can provide variety of loans for house construction, buying lands and
apartments. In addition to this, it can provide business loans for different business
houses at easy installment scheme. As a result, it leads to provide people with every
modern banking facility that would ease work process of people. In this way, if up
gradation in services is done, competition can be easily sustained in business sectors
(Hsbc.co.uk, 2017).
3.2 Describing in what way, arrangement of distribution is done for
providing convenience to customers
As per Kaski et al. (2017, p.700), services and products is required to be distributed
evenly so that every person can be linked with those services. This bank needs to
distribute their products in almost every branch of this bank. Moreover, new branches
can be opened up that will assist people to use these services properly. Moreover, net
banking, as well as net banking facilities, can be updated for placing such services for
people. This bank can concentrate large numbers of commercial people, who will deal
with this bank in large amounts. Therefore, profit, as well as competition, can be
properly sustained in market.
Financial institution is a place that provides services by maintaining huge security and
privacy (Kuvaas et al. 2015, p.11440). This bank needs to develop their security
system and bring latest technology for securing accounts of people. In this way, if
service distribution is done, it will lead to bring more satisfaction within customers. This
will help in resolving any conflict in mind of people regarding any service. Moreover,
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accessibility of such services needs to be done at every point of city. If distribution is
done over wider area, massive numbers of customers can be brought into services of
this venture. Facilities need to be provided for each customer individually so that full
usages of such service are done thereby, maintaining huge competition in market.
Figure 1: Marketing Mix
(Source: Kaski et al. 2017, p.700)
3.3 Explaining process of setting prices to show objectives of
ventures
Toomey et al. (2017, p.270) opined that for holding strong position in market, proper
pricing strategy needs to be undertaken so that advantage can be gained. HSBC bank
holds huge share in market because it has maintained reasonable pricing structure of
their services and products in market. It has to deal with every obstacle of market
tactfully and sustain inflation rate of market properly. While maintaining all these
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hurdles, this company has to know in what way, price need to be set so that profit, as
well as competition, can be easily maintained. Huge control in market is set by this
entity and it follows every guideline of UK financial sector properly.
It has kept reasonable rate of interest as well as provides different type of loans for
people including home loans, business loans and personal loans. In addition to this, it
has provided huge rate of interest for people, who are holder of life insurance of HSBC.
Repayment process of loans has been set at a particular tenure so that people can
easily repay their debt. Extra activity and function like advance payment of loan and
replacement of loan are not being charged from people. This bank can develop their
structure of price by adding premium deals in their work structure. This means people
can get some subsidies when they repay their loan earlier. This will help in taking a big
leap towards maintaining good competition in market.
3.4 Illustrating in what way, promotional activities are integrated to
attain objectives of marketing
HSBC bank does not provide any gap while promoting their products in market as well
as in front of people. Gallego et al. (2014, p.220) commented that promotion activities
need to be organised duly in order to encounter with more number of people. Since this
bank has branches in many places across globe, promotional activities need to be
effective so that it can be able to cover up such vast area. This company maintains their
own catalogue of service, which has been designed in a creative way. Every person
attached with this bank gets this catalogue after ending of a fiscal year. It promotes their
services using commercials, messages and by delivering brochures to people, who visit
branches of this bank.
This bank can uptake another innovative way of reaching people by placing different
signboards in every portion of city. This will help people to know about their new
services and find interest in those services. Moreover, it can display their terms and
loan services in LED screens in every branch. This will help in attracting customers and
place news regarding their services to existing customers also. Besides, staffs of this
bank need to develop their communication process correctly so that they can influence
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users by their words. Moving service users towards a particular service can be done by
uttering such words that can motivate people to use those services (Naim et al. 2015,
p.5). This venture can uptake this process of promoting so that people can be easily
brought under their services.
3.5 Analysing elements of extended marketing mix
In the opinion of Smith et al. (2014, p.2455), extended marketing mix in another name
of service marketing mix that includes another 3 P’s namely People, Process and
Physical Evidence.
People: People are important part of marketing mix because people are that element,
who defines every service (Smith et al. 2015, p.1175). In this bank, people play a vital
role because every service has been incorporated in business only for people. Based
on their expectations and demand, new and creative services are implemented. This
helps in conducting business in a suitable manner thereby, uplifting this organisation
into another level.
Process: As mentioned by Berk (2016, p.40), process can be stated as in what way,
services are provided to customers. Quick services are provided by this financial
corporation in order to maintain a good image in front of people. However, quality of
services needs to determine accurately so that people cannot raise a complaint against
them. This will lead to bring huge importance to services that are provided for people.
Physical Evidence: Oude Mulders et al. (2016, p.450) claimed that physical evidence
helps in ascertaining whether tangible or intangible services are provided to people. For
creating satisfaction among users, elements that are tangible need to be provided with
services. Intangible services are not seen but can be felt while using it. Similarly, this
bank provides less interest rate for different category of people so that every section of
people can use it suitably.
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Figure 2: Extended Marketing Mix
(Source: Smith et al. 2015, p.1176)
Task 4
4.1 Planning marketing mix for separate segments in consumer
markets for Vodafone UK
(Refer to PPT)
Marketing mix for two separate segments of customers in markets for Vodafone UK is
shown properly (Vodafone.co.uk, 2017).
Segmentation of product
Product: Vodafone provides different types of products for customers in market like
unlimited data, messages and voice call services. Basic aim of providing such products
is enhancing satisfaction level of customers and maintains good competition in market.
Tariffs rates are also reduced so that every people can incline towards using services of
this company.
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Place: This Company has delivered services to different places in city and also in
suburbs. It has also tried to reach people in rural areas thereby, providing them with
quality services.
Promotion: Promotional activities of every company have to be very captivating for
attracting a large customer base (Damian et al. 2015, p.85). This company uses every
possible technique of promoting their products. In order to gain trust of people, it
advertises their products in local market as well as international market.
Price: Price of products in Vodafone is set in such a way, that every section of people in
society can use it. Along with that, it has maintained reasonable price rate for unlimited
calling and data services. Moreover, service quality did not degrade when cost rate was
reduced by this venture. Huge competition is maintained in market.
Service Segment
Physical Evidence: Vodafone UK has installed its cables all over cities and has
provided its services properly. It has opened up different stores in cities as well as rural
areas in order to provide quality services to people.
Processes: Business processes of this entity are very smooth so that queries of
customers can be solved properly.
People: People are given huge importance in workplace of Vodafone. Employees, who
can deliver quality services to people, are recruited in Vodafone. Satisfaction of
customers is also guaranteed by providing them with high-quality services.
4.2 Elucidating differences in products marketing to businesses
instead of consumers for Vodafone UK
(Refer to PPT)
Frauendorfer and Mast (2015, p.220) claimed that business to business marketing is not
similar as that of business to customer marketing. In business to business marketing,
transaction occurs between two different business entities. Vodafone manages their
business to business transactions suitably so that strong result can be gained. Entities
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that seek services from Vodafone are provided with high-quality service in order to
maintain proper terms and conditions of business. This company provides service via
wire line that is not limited within geographical boundaries of a country. Wireless
communication process of this venture is very developed thereby, enhancing business
to business marketing of this venture. This bears requirements of internet of other
enterprises and delivers them with quality services. This adds great advantages to
business of Vodafone. As opined by Ruben (2015, p.110), in B2B transactions, potential
quality services need to be achieved in order to attain trust and loyalty of other brands.
Vodafone provides services at minimal cost and risk related to those services are very
less. This helps in operating properly in business arena and gaining notable advantages
in business units.
4.3 Showing in what way and why international marketing of Vodafone
differs from that domestic marketing
(Refer to PPT)
Domestic as well as international marketing are two different segments of marketing
where marketing norms differs a lot (Nowak et al. 2015, p.4204). There are many areas
like possibility, obstacles, earnings and expertise that differ a lot in case of marketing in
these two segments.
International marketing Domestic Marketing
International market provides Vodafone
with immense opportunities to expand their
business successfully.
Chances of expansion in domestic market
are not as high as that of international
market.
When ventures market their products in
global market, they have to face huge
problem (Walker, 2014, p.6). This venture
too had to face different problem while
conducting business in this sector.
In national market, there is no such barrier
that business sectors have to face while
executing their business in this market.
Margin of profit is very high in global
market.
Margin of profit is not high in domestic
market and actual costs of products need
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to be kept reasonable.
Use of modern technology can be done in
international market.
Local markets use traditional technology in
comparison to that of global marketing.
Table 1: Difference in International as well as Domestic marketing
(Source: Cooke and Dayton, 2015, p.132)
Conclusion
The study shows that in what way, marketing principles can prove beneficial for any
business house. It is important for every individual sector to maintain suitable
competition in market. This adds glory to business enterprises and a huge recognition
among people. However, it is required that people had to be treated properly while
delivering services to them. This will lead to creating a brand awareness among them,
which can be considered as a competitive advantage for business sectors. Different
strategies need to be developed for better execution of businesses. In order to attract
customers, marketing strategies need to be very appealing so that people can be
involved under such services. Satisfying every individual purchaser is aim and objective
of every business. This will lead to maximise profits of business and gain competitive
advantage in business scenario. However, objectives of companies need to be followed
accordingly for enhancing profit margin of every business firm.
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