Taxify: Marketing Strategy, Marketing Mix & Functional Interplay

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Added on 2024/07/01

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This report analyzes Taxify's marketing strategies, focusing on the role of marketing and its interrelation with other functional units within the organization. It explores the impact of technological advancements like artificial intelligence and voice search on marketing practices. The report also details key roles and responsibilities of the marketing department, including managing budgets, understanding consumer needs, launching new products, and increasing sales. Furthermore, it examines the interrelationship between marketing and other functions such as public relations, human resources, and research & development. The report also outlines how core marketing functions like pricing, product management, promotion, and selling support business objectives. It also delves into the elements of the marketing mix, particularly the 7Ps (Product, Price, Place, Promotion, People, Process, and Physical Evidence), in the context of Taxify's operations. The report also touches upon the importance of a marketing plan for Taxify including conducting a situational analysis, defining marketing objectives, identifying target markets, and developing marketing strategies.

MARKETING ESSENTIALS

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Table of Contents
Introduction................................................................................................................................ 3
1. The role of marketing and how it will interrelate with other functional units.......................4
2. Elements of the marketing mix..............................................................................................9
3. A Marketing Plan................................................................................................................. 15
Conclusion................................................................................................................................19
Reference List..........................................................................................................................20

Introduction
Marketing is the considered as one of the most important components of business
management that is used for creating, keeping and satisfying the consumers of a business
organization. All of the business organizations of UK market including small to multinational
business organization need to use effective marketing strategy for acquiring more numbers of
customers. The overall marketing umbrella has the ability of covering public relations,
advertising, sales and promotion. The main motive of marketing is increasing the numbers of
customers and enhancing the rate of profitability simultaneously. On the other hand, Taxify is
an international company that deals with transportation network. Recently, the company has
decided to expand their existing business to UK. This testimony will outline the role of
marketing and how marketing function will support the business objectives. In addition,
elements of the marketing mix including 7Ps of marketing strategy and an effective
marketing plan will also be included in this testimony.

1. The role of marketing and how it will interrelate with other functional units
Advancement of technology has really influenced the marketing process. Several digital
technologies along with different attractive features have already arrived in this market place
and customers like to use all of these features in their daily routine. Using mobile, computer
and internet for using any product or service has become one of the most attractive current
trends (Kozlenkova et al., 2015). Due to this reason, being one of the leading transport
business organizations, Taxify offers their customers to use mobile and internet to book taxi.
In addition, online payment is also offered by the company to its valuable customers.
Artificial intelligence
Artificial intelligence is new trend in marketing. It allows increasing user engagement. Using
AI feature to solve the problems of customers as well as in marketing is the new trend
(Russell and Norvig, 2016). It can work as like a human and easily assist customers through
offering different effective services. Being one of the leading transport companies, Taxify
needs to focus on adopting AI technology within the organization for developing their
marketing process.
Voice search
Voice search has become one of the latest technologies that is adopted by the most of the
companies. It has changed the way of interacting with customers. When customers ask a
question, they get direct answers instead of several links. This feature has enhanced the
interest of the customers to use the service (Franz et al., 2014). Taxify needs to focus on
providing this kind of features to their customers for acquiring more attraction.
In order to sustain in this present competitive market, it has become very important for an
organization to focus on future trends. Knowingly this, Taxify also has focused on improving
their marketing for future. Several companies are arriving with their new and effective
strategies in the marketplace to compete with other rival companies. Taxify needs to
understand the future trends. In future, Taxify needs to provide more facilities such as wifi
services during travelling. In addition, the company needs to improve their services. the
company needs to focus more on future trends to sustain in this competitive market.
Self driving car

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Taxify is preparing for launching a self drive car service to its valuable customers in future
for attracting more numbers of customers in an effective manner. This car will be able to
peak up and drop the customers as per the demand of the customers safely (Bojarski et al.,
2016). Therefore, customers will get a new type of experience.
Wi-Fi service in car
People like to use internet services all the while. In future, this demand will be increased
tremendously. Therefore, Taxify needs to adopt wifi facility within the car to offer their
customers an uninterrupted internet service during ride. This can really assist the company to
get more numbers of customers and to increase the revenue.
Key roles and responsibilities and how it may change in the future
Marketing department has several important role and responsibilities to play within the
organization in the London market place. Taxify is a popular company that provides transport
services. Therefore, the marketing department of the company has important role that are
listed below;
It is very essential for any organization to understand the company’s position regarding the
market competition. Through this way, company like Taxify can easily identify their
mistakes. Marketing department to ensure the longevity of the company does this crucial
business operation.
Manage marketing budgets
Planning or making a budget for the activities of the upcoming years is important for
sustaining in this competitive market (Baker, 2016). The marketing department of Taxify has
the responsibility of planning and budgeting marketing plans effectively.
Consumers required to be surprised by daily attracting offers. Marketing department has the
responsibility of understanding those requirements and providing those offers in a more
significant way that it can attract more numbers of consumers.
Launching a new product or service
Marketing department is responsible for launching a new product or service in the market
place in an effective way to attract a wide range of customers. Taxify is a popular transport
corporation that provides comfortable transport facility along with several attentive features

and offers (Allen, 2015). If the company added any feature in their feature list, the company
needs to promote their new service through its marketing department.
Increasing sales and profitability
Marketing is crucial for any organization for acquiring more numbers of customers to them.
Effective marketing assists an organization to enhance their target market as well as the
numbers of target customers. This allows enhancing the rate of sales and profitability for
enhancing the overall business model. In addition, effective marketing can be very essential
for companies that are staring up their business or expanding their existing business to a new
location.
Interrelationship between marketing and other organizational functions
Marketing has a deep relationship with other organizational functions like public relation,
Human resource, research and development and others. Those are followed below;
Relationship between marketing and public relation
Public relation is all about selling the organization or brand by managing the communication
channel positively between an organization and its all stakeholders (Theaker, 2017). On the
other hand, marketing has the aim of increasing the numbers of sales by acquiring more
numbers of customers. Therefore, like all business organizations Taxify all needs to focus on
improving public relations in order to accomplish their business targets in an effective
manner.
Relationship between marketing and human resource
Human resource is one of the most crucial business functions that need to be maintained for
increasing the overall performance of the organization in an effective manner. In today’s
competitive market, acquiring the most eligible candidates for the company has become a
challenge (Allen, 2015). By selecting the most eligible candidates for the organization,
human resource department also allows improving the performance level of the overall
organization. On the other hand, marketing focus on rising up the sales and revenues of the
company. Both of the Human resource management and marketing has the target of
enhancing the overall business model by increasing the sales and revenue of the company.
Therefore, companies like Taxify needs to focus on both of their marketing and human
resource department as they are co-related with each other.

Relationship between marketing and research & development
Research and development requires for understanding the present market condition as well as
the threats of the company. It allows identifying the mistakes as well. Thus, company gets an
excellent opportunity to sort out their mistakes and to take adequate steps for outsourcing all
those mistakes (Kerzner and Kerzner, 2017). Successful business organizations such as
Taxify need to balance between research & development and marketing department for
accomplishing all the business objectives in an effective manner.
How marketing function will support the business objectives?
There are several core marketing functions such as pricing, product or service management,
financing, distribution, selling, promotion that have great importance in accomplishing
business objectives.
Pricing
Setting the price at the right level is one of the most crucial business functions in any
business organizations including Taxify in order to sustain in this competitive market place
(Kerzner and Kerzner, 2017). Affordable price rate of product or service can influence the
customer purchasing behaviour and led them to purchase the product. Thus, company can
enhance their rate of sales as well as profitability. Alternatively, it allows accomplishing
business objectives effectively.
Product or service management
Product or service management has the responsibility of designing, improving, maintaining
and developing products or services for meeting the needs of the customers. By meeting
customers’ needs, a company such as Taxify can enhance their revenue in the market place as
well as accomplish business objectives.
Promotion
Promotion is the process through which companies like Taxify communicate with their
consumers about their service or product for achieving the desired outcome (Stark, 2015). It
includes personal selling, advertising, public relation and publicity in order to attract more
numbers of customers those who can buy their service or product. Alternatively, it assists to
achieve the business objectives in a more significant way.

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Selling
It is considered as one of the most important business functions, that every organization
needs to focus. Without selling product or service none of the company can accomplish their
business objectives. Actually, none of the company can sustain in this market place without
focusing on selling. All of the business organizations including Taxify needs to focus on
increasing their sales in order to accomplish their business objectives as well as to sustain in
this market.
Therefore, all of these marketing functions assist and support business organizations in
accomplishing their business goals and objectives.
2. Elements of the marketing mix
In order to justify the market mix for the Taxify Company, 7Ps of marketing mix is going to
be discussed in this assignment.
Figure 1: Marketing Mix
(Structure: Hanssens et al., 2014)
Product:
Product is considered as the most important thing in any business that will be offered to
customers for gathering their attention. In addition, product needs to be made with all the
requirement and needs of the customers for meeting the customer demand. By meeting the
customer needs, companies can easily enhance their business model as the rate of sales and
profitability will rise automatically. Product is considered as the most important component
of marketing mix strategy as it has the ability of attracting customers to the company for

increasing the rate of sales effectively. All business organization such as Taxify should focus
on their business product or service in order to enhance their revenue an d brand in the
market place.
Price
Pricing of the product or the service is referred to the amount paid to the service provider to
enjoy the service. Pricing is one of the most important components of the marketing mix. In
order to get proper profitability issues for the organization, the managers need to develop a
suitable pricing policy for the organization. There are several pricing techniques that are
considered as effective such as optional pricing, premium pricing, bundle pricing, skimming
pricing and others. In order to increase profit and generate revenue for the organization, the
managers need to provide reasonable pricing for the service provided to the customers (Fan et
al., 2015). The company named Taxify can use optional pricing or value pricing in order to
gather more attraction of the customers. Additionally, through affordable price rate, company
can enhance their market revenue. However, the managers need to always look for the
feedback from the customers regarding appropriate pricing policy for the service. By
adjusting the overall pricing, it has a huge impact on the sales and demand of the product.
There are three major pricing strategies enforced by the organization, which are as follows:
 Market penetration pricing
 Market skimming pricing
 Neutral pricing
Before setting up pricing for the products for the organization, the managers should consider
all the points:
What is the production cost?
What is customers perceived product value?
How much discount can be added in the product?
Is the product price is appropriate compared to rivals product?
By judging all the parameters the manager can get to a point to set up proper value for the
service provided to customers (Fan et al., 2015). There are numbers of cab service providers

in the UK market that is giving proper service in reasonable amount of pricing. Hence, the
Taxify organization needs to come out with effective pricing strategy for their services and
innovative method of payment,
Place:
Placement and distribution is an important part of marketing mix. The manager of the
organization needs to plan for positioning their service in the market where the availability of
the potential customers is more (Hanssens et al., 2014). It has been seen that there are
numbers of cab service providers in the market and based on the strategies implemented by
the rival companies, the managers of Taxify need to start their service in the market. Proper
understanding of the target market, and by discovering the most efficient distribution channel
it is possible for the company to achieve the business objectives. Distribution strategies can
be again subdivided into four distinct points:
 Intensive distribution
 Exclusive distribution
 Selective distribution
 Franchising
The company can get competitive advantage by developing proper distribution strategies, the
company should go through the flowing aspects while selecting their preferred distribution
channel:
 Where are the customers are looking for to get proper service

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 What is probability of getting the positive result by maintaining proper distribution
channel?
 Does the business require a strong sales force?
 Is the process is marinating fair trading practice?
Promotion:
In order to boosts the brand recognition and sales, service promoting is the most valuable
approach. Product or service promoting is comprised with these following four factors:
 Sales organization
 Public relations
 Advertising
 Sales Promotion
Advertising is a conventional way of making people aware about the service provided by the
organization based on the radio, TV and print media the companies promotes their service
and products in the target market (Hanssens et al., 2014). In the contemporary times, this
process has been shifted in the online advertising process.
Public relation is also a vital factor that comprise of press release, exhibitions, sponsorships
dealing and seminars for the company. Word of mouth approach is also helpful for new

companies to expand their sales in the market (Bahadir et al., 2015). Based on this informal
communication method, the huge group of customers will get to know about the service
provided in the market.
People:
Target market and people are directly involved with the business process. Before launching
the service, the company need to take ands overall estimation of the people and the
availability of the customers in the target market (Bahadir et al., 2015). Efficient and skilful
people are the most vital for the business process. Hence, the company should build up
proper strategy for the involving those efficient people for in the business.
Being a new company, Taxify are looking for recruiting new people as taxi drivers in their
company. However, the managers should develop proper strategy for recruiting people for the
organization and training them properly to meet the business objectives (Huang and
Sarigöllü, 2014). It is helpful for both the customers and the service provider to deliver
proper service. Based on the improved ideas of the people, the managers will get to know
about the areas need to be developed for the business.
Physical Evidence:
In case of business organizations, both the manager and the customers should maintain
physical evidence to make sure that the service was delivered. In addition to this, physical
evidence is also an important tool to judge how the products and the service is delivered to
the marketplace (Huang and Sarigöllü, 2014). The feedbacks received from the customers are
also a big evidence to improve the service for the organization.
Processes: