Principles of Marketing - Marketing Report for Business

This report provides a comprehensive overview of the principles of marketing, exploring various aspects crucial for business success. It begins by examining consumer relationship management (CRM) and its significance in enhancing customer interactions and driving sales growth. The report then delves into marketing ethics and social responsibility, emphasizing the importance of fairness and ethical standards. It further analyzes consumer markets, including the influence of cultural, social, personal, and psychological factors on consumer behavior. The report also covers segmentation and positioning strategies, highlighting factors that affect target market selection, such as competitor entry and supplier bargaining power. Additionally, it examines product and branding, including the new product development process and the reasons behind product failures. Pricing strategies, including the differences between pure competition and monopolies, are also discussed. The report concludes with a look at advertising, public relations, sales promotion, online marketing, and integrated marketing communications, providing a well-rounded understanding of marketing principles and their practical applications.

Principles of Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Consumer relationship............................................................................................................1
2. Marketing Ethics & Social Responsibility.............................................................................2
3. Consumer markets...................................................................................................................2
4. Segmentation and positioning.................................................................................................3
5. Product and branding..............................................................................................................4
6. Pricing strategies.....................................................................................................................5
6. A Match the following............................................................................................................6
7. Advertising public relation & sales promotion.......................................................................7
7.A ............................................................................................................................................10
8. Online and direct marketing..................................................................................................12
8. a.............................................................................................................................................12
9. Integration marketing and communication...........................................................................13
10. Marketing channels.............................................................................................................15
REFERENCES..............................................................................................................................19

INTRODUCTION
Marketing is the promotional tool that helps to promote the products into market. The
report is based upon the principles of marketing and shows variety of tools that helps to
understand the importance of marketing in this business era. Further it describes the ways of
marketing with their pros and cons using different examples.
1. Consumer relationship
Customer relationship Management is those strategies which is used by the company in
order to improve the business relationship with their customers. Overall, it helps to manage the
customer relationship. Further, it is the combination of those practices and strategies which a
firm basically used in order to manage and analyse the customer interaction with an aim of
improving the customer service relationship and raise the sales growth for a firm.
Importance to marketers:
 As the main aim of CRM is to raise the sales growth and it is also accepted that the CRM
functions also assist in order to increase brand loyalty through target content and
messages (Armstrong and et.al., 2015).
 CRM is the tool that is used by the marketers for collecting real world market data for the
customers and it also helps to track the effectiveness of the marketing campaigns such
that the feedback and sales metrics also emerges from the CRM data capture can easily
by identify the marketing strategies.
 With the help of CRM, the marketers can easily analyse the neds of the customers and
also helps sales staff to deal faster so that it directly affect the sales revenue of a
company. It also ensures that the number of customers satisfaction is increased such that
they are exactly got what they need.
 The business are so focused on their products and services that they neglect customers
but when CRM is used into the working area, the workforce are forced to refocus the
marketing strategies on the customers.
 Example, Tesco uses CRM system in their working area in order to better targeted the
sales and digital marketing services and even the products and strategies which the firm
wants to sell in order to match the needs of the customers.
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2. Marketing Ethics & Social Responsibility
Marketing ethics are practising fairness standards in an organization which further assist
the business to perform in its best interest. Beside this, it is an area of applied ethics which are
also deals with some moral principles behind an operation and regulations of a marketing. Such
as some areas of marketing ethics like advertising and promotion also overlap with the media
ethics (Laczniak and Murphy, 2019). While on the other side social responsibility, is that ethical
framework that states some obligation to act for the benefit if a society at large extent. Further it
is the duty where every individual has to perform in order to maintain the balance between an
economy and ecosystem. Different example of marketing ethics and social responsibility are as
follows:
 For instance, misleading an advertising is the basic example that creates negative impact
upon the customers and it also leads the customers towards a false informative. This
misleading advertising also creates negative impact upon company's brand image and as a
result, the customer base also got affected.
 During marketing, when the company make some promising result but when the
outcomes are not as expected according to customers, then it affect the business in
negative way. At that time, the marketing manager states that they did not have any proof
and as a result, the company's reputation down because of decreasing customer base.
 Customers fist and foremost are individuals and it has been analysed that when the
business or a firm treat their customers first as a individual then they will become more
loyal towards a business. But on the other side, many business are also uses serotypes
myths in their advertising in which they mostly focus on single group and ignores other
groups. For example, the firm target only kinds for video games and lose access to
millions of customers but it has been realised that it is purchased by consumer aged 40
and older.
3. Consumer markets
Consumer’s behaviour is influenced by several characteristics such as cultural factors,
social factors, personal factors and psychological factors. It is the selection, acquisition and
consumption of the goods and services in order to meet their needs (Kompella, 2019). Thus, the
behaviour of customer are depended upon many factors some of them are as follows:
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Social factors: This factor affect the purchasing behaviour of the customers and these ra
reference group, family and role, status.
 Reference group: the impact of reference group varies across products and brands such
as if the company offer variety of products then the influence of reference group is also
high.
 Family: It is another aspect in social factor that influence the purchasing behaviour such
that if the decision to purchase a particular product in influence by the wife, then sellers
try to target women in their advertising.
 Role and status: All person has their role and status in society. For example, if a woman
is playing is working an organization as a manager then she is playing two role and the
purchasing is also influence by their roles and status.
Personal factors: Some factors in it are:
 Age: with the age, the customer have variety of option and the motive is also changes
with their decision of buying product changes. Thus, this does not affect consumer
behaviour.
 Occupation: This group have average interest in buying different products which is
offered by the company. That is why firm also produce the separate products for different
occupational groups.
 Lifestyle: the lifestyle of the person is varying from region to region and this also affect
the purchasing pattern (Chaffey and Ellis-Chadwick, 2019).
 Economic condition: if the person have stable economic condition then they purchase
high price products and on the other side, if they suffer from any loss then they will nopt
spend lot on buying a product.
4. Segmentation and positioning
Five factors that affect the target market strategies:
 Entry of competitors: If the target market selection is accurate then the company will
able to determine the better outcomes in short interval (Kiráľová, 2019). On the other
side, when the customers start purchasing the products, then the risk of rivalry threat
becomes decreases.
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 Rivalry between competitors: Th intensity of rivalry between the competitors basically
describe the future viability of a target market strategies. Such that if the rivals are few
and their products are not identical then it can be said that the rivalry is less intense.
 Bargaining power of buyers: if the competition is small, the buyers also purchase the
products at large quantities and this shows that the existence of the competition in a target
market also creates buyer bargaining power. Thus, it also give buyer a power to force the
price down.
 Bargaining power of suppliers: even the supply company also know the target market
strategies and if the company is not longer able to supply the target market then it will not
be possible for the firm to stay longer in this competitive era.
 substitution products: This will threaten the profitability of the business and if the
company set the lower price of their product to sell then there may be less demand. As a
result, the company have to make market strategies in order to make their product
popular in market (Heath and McKechnie, 2019).
5. Product and branding
New product development process: it has eight steps which are as mention below:
 Idea generation: in the first stage,the idea is generated and it also involves creating a
large pool of ideas from various sources such as internal sources, SWOT analysis, market
research etc.
 Idea Screening: It involves finding the good and feasible ideas and discarding those
which are not, such as company's strength, weakness, needs and current trends (Shabani,
Munir and Hassan, 2019).
 Concept development and testing: It is the detailed strategy and blueprint version of a
data in which the idea can be presentable and all the ideas which are passed in screening
process which come into next stage.
 Business strategy Analysis and development: In this stage, the concept is developed
into product and the strategy is involved such as competition of a product, cost involved,
pricing strategies etc.
 Product development: If all strategies are approved then the product are transferred into
an actual tangible product.
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 Test Marketing: in this stage, customers feedback are taken and further changes are
taken if required, then the prototype is also introduces for research as well in order to test
the product feasibility.
 Commercialization: In this stage, the product is ready and marketing mix is applied in
which final decision are made such as launching it into market etc.
Many of the new products are failed because the company did not understand the
customers needs and wants, or they target the wrong market. While on the other side, the pricing
strategy is not correct, there may be chances of weak team and weak internal capabilities that
cause the failure of new product (Kotler and Armstrong, 2015). However, it has been critically
evaluated that some products are successful even because of correct pricing strategies, good
market execution strategies, strong capabilities of a company and they easily analyse the
customer needs. That is why proper planning helps to make the product successful in market.
6. Pricing strategies
Price refers to the amount of money which customers have to pay in order to obtain the
products. All P's of marketing mix are important but the importance of price is different from
other P's. It has been analysed that every marketer do a lot of expenses in order to manufacture a
new product and to communicate the benefits to customers using promotion method, but price is
the only element which helps the marketer to overcome all the expenses and get profit while no
other P's do, that is why it is also flexible element.
Customer value determine the upper limits on the price, while Price determine the lower
limits on the price.
Difference between pure competition and monopolies competition
Pure competition Monopolies competition
 The price is equal to marginal cost and
the firm also earn the economic profit
i.e. zero (Shaw, 2016).
 It is composed of many firms in which
no firm has a market control.
 In this the price is set above the
marginal cost and the firm is also
earned a positive economic profit.
 There is only one firm that decide the
price and supply level of goods and
services.
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There are few sellers in oligopolistic market because of smaller number of firms and each
firm act strategically, even the total profit is also less than monopoly profit.
In pure monopoly market, the prices are not set higher because the monopolist would
only sell one unit or no unit of a product. While on the other side, the monopolies market main
aim is to maximize the profit which is not possible when they charge high price of the products
(Lilien, Rangaswamy and De Bruyn, 2017).
Examples:
 Elastic: Natural rubber, nitrile rubber.
 Inelastic: Electricity, water, drinks, clothing, tobacco.
Sudden change in the level of price of a goods and services basically determine the
elasticity of the goods such as luxury goods generally have high elasticity of demand due to
having sensitivity to a change in price.
6. A Match the following
Terminology Definition Example
Product line
pricing
Companies that make products that must be
used along with a main product. Producers of
the main products often price them low and
set high mark-ups on the supplies.
In food store,
apple shop such
as MRPEasy
price.
Captive product
pricing
Different versions of the product are priced
differently but not according to differences in
their costs.
If a person buy
inexpensive razor
but company set
high price.
Product bundle
pricing
Sellers often combine several of their
products and offer the bundle at a reduced
price.
McDonalds value
pack meal
Market skimming
pricing
Sets a high price for a new product to skim
maximum revenues layer by layer from the
segments willing to pay the high price.
Innovative
electronic
products such as
Apple iPhones.
Location pricing A company charges different prices for
different locations, even though the cost of
offering each location is the same.
The clothes price
in UK and India
is differ for the
same brand.
Psychological
pricing
Considers the psychology of prices and not
simply economics because often consumers
will use price to judge quality thus the price is
used to say something about the product.
Price the product
for $19,999
rather than
$20000.
Market Involves setting a low initial price in order to DVD rental
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penetration
pricing
penetrate the market quickly and deeply in
order to attract a large number of buyers
quickly and win a large market share.
shops
Product form
pricing
Different customers pay different prices for
the same product or service.
Clothing,
jewelery
Customer-
segmented pricing
The company charges different prices
depending on individual customers and the
situation
Banks and other
financial
institution
Time pricing A firm varies its prices by the season, the
month, the day, and even the hour
Scheduling usage
at the time of low
demand to pay
cheaper rates.
Dynamic pricing management must decide on the price steps to
set between the various products in a line
Airline industry
alter their seat
based upon the
type of seat
By-product
pricing
A manufacturer will seek a market for by-
products and should accept any price that
covers more than the cost of storing and
delivering them
Molasses is a by
product of
refining sugar
Optional product
pricing
Involves offering to sell optional or accessory
products along with their main product
Airlines will
charge for
optional extra for
window seat
7. Advertising public relation & sales promotion
Concept Explanation Example
Informative This provide useful and interesting information and build
a better relationship.
Advertisement
Persuasive It means to convince people or believe them to buy the
product.
Social media
Reminder It strengthens previous promotional activity and the
name, tag are remained as it is.
Coco-cola
Concept Explanation
Affordable approach It is the advertising expense budget
method that is based upon the firm's
Advantages: it never allow
the company to overspend i.e.
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owner or department who believes that
firm can afford to spend on marketing.
cost effective (Goworek,
McGoldrick and McGoldrick,
2015).
Disadvantages: it sometimes
did not meet the need of
customers.
Percentage of sales It is the method that is used calculate how
much amount is needed to raise sales.
Advantages: it is focused and
cost control.
Disadvantages: it is consider
the short term profit bias.
Competitive parity It means that best expenses which is
needed for advertising activity in order to
stay on par with rivals for a brand.
Advantages: It spending
match with the competitors
and visibility of a brand.
Disadvantages: It assumes
that firms have similar
expenditure that program will
be equally effective.
Objectives and task It is budgeting method that is based upon
the results, strategies needed and the cost
associated to achieved those results
(Theaker, 2016).
Advantages: budget is not
based on previous sales
amount and also focused on
business key goals.
Disadvantages: the method is
costly and time consuming.
Examples
Slice of life: This style shows one or more “typical” people
using the product in a normal setting.
Example- Theatre
Lifestyle: This style shows how a product fits in with a
particular lifestyle.
Example- luxurious products
for higher class people.
Fantasy: This style creates a fantasy around the product or its Example- Beauty products.
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use.
Mood or Image: This style builds a mood or image around the
product, such as beauty, love, or serenity.
Example- Beauty products.
Musical: This style shows one or more people or cartoon
characters singing about the product.
Example- children use
kindeljoy to enjoy the
character in it.
Personality symbol: This style creates a character that
represents the product. The character might be animated or real.
Example- Nike- shoes,
Technical expertise: This style shows the company’s expertise
in making the product.
Example- iPhone
Scientific evidence: This style presents survey or scientific
evidence that the brand is better or better liked than one or more
other brands.
Example- P&G company
Testimonial evidence or endorsement: This style features a
highly believable or likable source endorsing the product.
Example- Matrimonial sites.
Pros and cons
Newspaper Advantages: it provide general information and help to raise the knowledge
and it carry news of the world.
Disadvantages: It is analogue and can easily be discarded.
Television Advantages: help to raise general knowledge and collect lot of information as
well.
Disadvantages: watching television is not good for health and also contribute
to sleep difficulties.
Radio Advantages: help to reach many customers and cost effective method.
Disadvantages: less number of customer is listening to radio and there is no
interactivity (Pros and cons of Radio, 2018).
Magazines Advantages: It target many people and have a longer life than newspaper.
Disadvantages: It requires the ads to be submitted in advance for testing
which is not possible for the business.
Direct Mail Advantages: this is easy to track so that it allow the company to easily
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compute the return on investment and provides high information.
Disadvantages: It is costly and many of the person did not read it.
Outdoor Advantages: it is cost effective option and also helps to creates immediate
first impression that helps to impulse purchasing.
Disadvantages: not possible to remember the contact information and it is not
possible to inspect regularly.
Internet Advantages: this strategy is inexpensive and have a large capacity
information.
Disadvantages: it is advertising overload and contain too many data, having
less scope.
7.A
Public relation tools are as follows:
 Social media: Using different social media tools such as Facebook, big company will
enhance its sales and force many customers to purchase the products.
 Brochures and catalogues: This help to keep the customers thinking about a business
and its products. It is designed such a way that helps to drive customers and help a
business to do work online (Porral and Stanton, 2017).
 Advertorials: it is in the form of advertisement which only deals with business stories
and it communicated the message to special group only.
Role of public relations in building a brand: it plays an effective role to build a brand
for any company such that this tool enhance the awareness in order to understanding and
commitment to a brand by using PR. As it is essential part of overall strategy whose aimed at
sustaining and raising standards of performance and credibility.
Increasing competition, consumer acceptance, expectation of price decreases are some
factor that affect the growth of sales promotion.
As per the view of Theaker, (2016.) Sales promotion draws attention to particular
products and it keeps the trade flow between distributor and retail. On the other side, Austin, and
Pinkleton, (2015) argues that sometimes it leads to miscommunication and it can be consider as a
disadvantage when they are offered at regular basis.
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