Principles of Marketing Assignment - Terraco Analysis

This assignment provides a detailed marketing analysis of Terraco, a UAE-based manufacturer of eco-friendly finishing materials. It begins by outlining Terraco's vision and mission, and explains how marketing functions contribute to achieving these goals by understanding customer needs, wants, and demands. The assignment then delves into Terraco's customer-driven marketing strategy, including segmentation, targeting, and positioning. It explores the different types of segmentation used by the company. Furthermore, the assignment applies the BCG matrix to four selected products, analyzing their market growth and relative market shares. Finally, it examines the four Ps of marketing—product, price, place, and promotion—for each of the chosen products, providing insights into Terraco's marketing mix and strategies. The assignment is a comprehensive case study, offering a practical application of marketing principles.

Running Head: MARKETING
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Marketing
Principles of Marketing
(Student details :)
7/2/2019

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Principles of marketing
This journal is based on marketing analysis of a product manufacturing company
which is UAE based and a leading one. The chosen company is ‘Terraco’ founded in the year
1980 and later become a leading manufacturer of eco-friendly finishing materials. The
Terraco Group stands for quality, not quantity (Terraco Group).
Answer 1
The vision of the Terraco Company (TC) can be explained as follows:
 To become the preferred solutions provider and partner as well
 To add value to their consumers worldwide
 To offer quality, durable finishing products by using green as well as innovative
technology (Terraco).
The mission of the TC can be explained as below:
To become the leader within eco-friendly finishing materials for the global construction
industry in the long-term is the mission of the company (Terraco).
In addition, marketing functions can effectively help TC in achieving the vision and
mission of with the help of basic steps of the marketing process. The first step which can help
TC is to understand the market place. The above marketing function is usually achievable
when TC will attempt to understand their customers’ wants needs and demands. The
examples of customer’s needs include social, physical and individual needs. In this way,
consumer requirements wants and demands are typically fulfilled through market offerings
(Leeflang, Verhoef and Dahlstrom). In this context, market offerings for TC are a great
combination of products, info, services or experiences provided to the global market for
satisfying a customer’s needs and wants. Therefore, marketing functions will create value for
TC customers and hence relationships will be formed which will definitely help the company
to accomplish its mission and vision efficiently (Hollensen).

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Answer 2
The TC is designing a customer-driven marketing strategy through segmenting,
targeting as well as positioning their products and services. As we know that marketing
management is an art and science for choosing target consumers and building profitable
relations with all of them. The TC is using different types of segmentation for achieving the
objectives of marketing management. For identifying the customers to be served by the TC,
the company effectively use STP (referred to as Segmentation-Targeting-Positioning).
Moreover, STP helps the chosen company to serve the identified customers in the best way
(Lee and Carter). The TC divides the markets and customers into different segments of the
consumers based on their sectors. Furthermore, the TC does target marketing by finding
which segments of customers need to be focused in order to conduct efficient marketing
activities. Later then, the TC adopts product positioning in order to create a unique perception
about their products and services within the minds of their customers through differentiating
with the rest market rivalries (Fill and Turnbull).

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Source: (Hollensen)
There are four different types of segmentation which are used by the organization
chosen in this paper, as follows:
 Demographic segmentation: in this type of market segmenting, TC divides a target
market on the basis of the variables like education, gender, age, family size, income,
occupation and many more. This strategy helps the TC to become the leader amongst
other marketers (Cateora, Gilly and Graham).
 Geographic segmentation: target customers and marketing is usually based on
predefined geographic limits by the TC.
 Psychographic segmentation: while using this segmentation strategy, the TC focuses
on the internal traits which are owned by the target customers. In this context,
psychographic traits may include interests, personalities, values, attitudes, opinions,
lifestyles, motivators and many more.
 Behavioral segmentation: by using behavioral segmentation, TC breaks down the way
their consumers do the decision-making for buying products and services (Cateora,
Gilly and Graham).
Answer 3
The TC has a great product portfolio having more than 550 high-quality products. All
of the products offered by the TC are eco-friendly, water-based and hence offer outstanding
long-term value to their customers. In this way, based on their different products and services
a BCG matrix has been generated as follows:

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In the above BCG matrix, Terraco generates as well as markets a wide range of tile
adhesive grades. In addition to that, an Exterior Insulation Finishing System (EIFS) is an
energy efficient thermal coating applied to the external surfaces of the buildings. In this way,
the BCG matrix is showing the TC products as per their market growth and relative market
shares (Terraco Group).
Answer 4
The four P’s of each of the above four products are as follows:
Product: the four products are EIF systems, tiling products, adhesives, and luxury
Scandinavian exterior and interior coatings. The products are used for different purposes of
buildings and equipment coatings (Terraco Group).
Price: from the perspective of market shares, the four products are oriented in different
quadrants of the BCG matrix. For example, luxury Scandinavian exterior coatings are having
high prices as compared to its other competitors in the market. In addition, adhesives are of
low price products as they have put in the dog's category of the BCX matrix. Apart from this,
EIF systems and tiling products are having average prices which are near to the prices offered
by the TC competitors in the relevant field (Terraco).

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Place: all of the products of the TC are sold all over the world. Although the company is
UAE based yet the products are majorly available in Abu Dhabi, UAE, and Dubai while also
available to export worldwide (Terraco).
Promotion: there are several promotional strategies which have been utilised by the TC for
their products’ advertising and promotion. For instance, the TC uses sales promotion of its
products and services on a large extent (Terraco Group). In addition to that, publicity and
direct marketing have also been used by the company for the promotion of the four above
mentioned products of the TC. International advertising through many efficient ways was
used by the chosen company for their increased sales and growth in the long-term.

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References
Cateora, P., C. Gilly and J. Graham. International Marketing. New York: McGrawHill, 2011.
Fill, C. and S.L. Turnbull. Marketing communications: brands, experiences and participation.
London: Pearson, 2016.
Hollensen, S. Marketing management: A relationship approach. UK: Pearson Education,
2010.
Lee, K. and S. Carter. “Global marketing management.” Strategic Direction 27.1 (2011).
Leeflang, P., P. Verhoef and P. Dahlstrom. “Challenges and solutions for marketing in a
digital era.” European Management journal 32.1 (2014): 1-12.
Terraco Group. EIFS & Architectural Finishes. 2019. 02 07 2019 <http://www.terraco.com/>.
Terraco. Our Mission & Vision. 2019. 02 07 2019 <http://www.terraco.com/our-mission-
vision/>.