An Analysis of Marketing Principles and Practices at The Virgin Group

This report provides a comprehensive analysis of the marketing principles and practices employed by the Virgin Group. It begins with an introduction to marketing concepts and terminology relevant to the company, including production, product, selling, marketing, and societal marketing concepts. The main body delves into the marketing strategies and programs used to achieve organizational objectives, such as promotional, production, and pricing strategies. The report also examines the application of marketing concepts and principles, including the 7Ps, STP, and market research, in the Virgin Group's daily operations. Furthermore, it explores the relationship between marketing functions and other functional areas within the organization, highlighting the importance of ethical marketing practices. The report concludes with recommendations based on the analysis of the Virgin Group's marketing approach and provides a list of references used in the research.

Marketing Principles and
practice

Table of Contents
1 INTRODUCTION........................................................................................................................1
2 MAIN BODY................................................................................................................................1
I Marketing concepts and terminology applicable to The Virgin Group....................................1
II Marketing strategies and programs for achieving organisation objectives.............................3
III Marketing concepts and principles used in The Virgin Group's daily organisational
operations....................................................................................................................................4
IV Relationship of marketing functions to other functional areas in organisation.....................7
3 CONCLUSIONS AND RECOMMENDATIONS.......................................................................8
4 REFERENCES ............................................................................................................................9
.........................................................................................................................................................9

1 INTRODUCTION
Marketing is total activities involved in transferring goods from seller to buyer which
includes shipping, selling, advertising, storing. It is categorized as branch of social science and
business. Principles of marketing are ideas to companies for effective strategy and achieve goal
of business. They are principle that helps in building product promotion strategy (Alserhan,
2017). Organisation apply such principles in order to optimize performance of existing product
or launch new product. Given assignment is based on Virgin Group which is British
multinational company founded in 1970 at London UK. It deals in various product such as
books, banking, jewellery and others. Here will be discussing about marketing concepts,
strategies which helps in achieving objectives of Virgin Group. Also discussing principles, STP,
market research and relationships of marketing functions to other areas in organisation.
2 MAIN BODY
I Marketing concepts and terminology applicable to The Virgin Group
Marketing concept is strategy which firms implement for satisfying needs of customer,
increasing sales and beating competition. There are five marketing concepts applied in Virgin
Group which are as described below:
Production Concept- This is oldest concept used in business and customer prefers
products that are more available and inexpensive. Managers focus on producing at low costs,
mass distribution and high production efficiency. Consumer are interested in low prices and
product availability. Concept has started in developing countries where people are interested
more in obtaining products than features. Virgin Group focus on need of their individual and
produce goods at low cost. This helps in survival of company and increase goodwill and image
of firm. For example, consumer need clothes which is provided by Virgin Group as per their
requirement in terms of good quality, low cost and easily affordable.
Product Concept- Customer favour those products which have innovative features,
quality and performance. Manager concentrate on making superior goods and improving them on
frequent basis and assume that buyer appraise quality & performance and admire well made
products. Individual are loyal if they meet their expectations and prefer same company goods.
For example, Virgin Group has ample of products such as jewellery, travel, beauty, clothing
which are purchased by customer on their basis of requirement. (Bowie and et. al., 2016) .
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Selling Concept- It means individual or organisation will not buy products of company if
they don't perform selling efforts in market. Enterprise have to undertake promotion and selling
of products for success marketing. Most of firm use this concept when they have overcapacity.
The main aim of selling concept is to sell what they make rather than focusing on market wants
(Brown, 2016). Virgin Group has effective tools for promoting their products at market place in
order to increase sales. For example, selling tool can be magazine, newspaper.
Marketing Concept- Marketing concept means placing customer at centre of the
organisation and carrying out activities for them. Here, business focus on market, understanding
need & want of consumer and executing strategy according to research starting from product to
sales. It is preoccupied with idea of satisfying customer need by providing solution to their
problems. Virgin Group deals in many products and satisfying need and want of their target
audience for sustaining in market.
Societal Marketing Concept- This concept means determining wants, needs and interest
of target markets and delivering goods which creates satisfactions efficiently and efficiently than
their competitors. It should be done in such way that preserve consumer and society well being.
For example if company manufacture car which use less fuel but more pollution, this satisfy need
of people but not societal welfare. Virgin Group provide satisfaction to both society as well as
individual. This helps in creating image of firm in market. For example, Virgin Group follow
corporate social responsibility for society and eco friendly goods for their customers.
There are various terminology used in Virgin Group which are described below:
Product Strategy- It is road map of product that outlines end to end vision, particulars
required for achieving strategy. It is composed of various sequential processes for achieving
vision effectively and efficiently. Virgin Group provide value for money for products and also
linked with styles and social values. This group does not associated with single product or
market as it involved cross products for their customers. Thus, design, quality, features, target
markets are different than other competitors of Virgin Group.
Branding- Branding is process which involved in creating image of product and unique
name in mind of customers through help of advertising campaigns. It aims to establish
significant and differentiated presence in market in order to attract and retain large number of
customers. It is very important for every type of company to do their branding in market in order
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to create awareness in consumer mind. Virgin Group has moved to international market for
branding and well know in North America and Europe (Burns, Bushand and Sinha, 2014) .
Promotional Strategy- Promotional strategy is part of marketing in which product are
marketed and advertise. It is very important strategy to create awareness about product and
services. This strategy helps in providing clear messages to individuals. It can be done through
various channels such as advertising, personal selling, public relations and sales promotion.
Virgin Group also use less promotional strategy for their products as it has great market value
and brand awareness in customer minds (Dubuisson-Quellier, 2013) .
II Marketing strategies and programs for achieving organisation objectives
Marketing strategy emerged in 19470s which is forward looking and long term approach
for planning with goal of an organisations in order to achieve sustainable competitive advantage.
It outline target market and value proposition which offers on basis of analysis of market
opportunities. It involves analysing company strategic from initial situation to formulation,
evaluation and selection of competitive market position for contributing objectives and goal of
firm. It highlights role of marketing between organisation and customers. Strategic planner
should have sophisticated skills for analysis as well as research. There are various marketing
strategies and programs used by Virgin Group in order to achieve objectives which are described
below:
Promotional Strategy- This strategy creates positive impact on consumers for knowing
about products in market. Founder of company has created various videos on you tube for
creating awareness. Advertising is part of promotional strategy which promote brands and
products for their people. Virgin Group has also set objectives which can be fulfilled by help of
proper communication and promoting tools. This strategy plays an effective role in marketing
goods and achieving goal within time. With change in time and situation, latest technology
should be adopted by company for surviving in market. Promotional tools can be social media,
website, newspaper for creation of information and knowledge regarding products. More
awareness of product in market helps in attaining objectives of company
Production Strategy- Virgin Group follow same ethics, values in all areas which
consistently increase brand image in mind of customers. Company stand for value of money,
innovative products, qualities, fun and sense of competitive challenge. Following of ethical
values in organisation helps customer to easily identified goods from competitors (Ennew, Waite
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and Waite, 2013). Virgin Group deals in different products such as jewellery, travel, cars, for
their customers. Group has similar style and designing of product for people so that they can
know about quality and innovative goods. Thus, if company provide good service to their
customers along with quality then it can easily achieve objective. The main purpose is to gain
competitive advantage and set goal of firm. For example, Virgin Group has high quality products
for their user such as clothing, services which create high brand value in market.
Pricing Strategy- Virgin Group have promotional advertising where clearly said that
price is no object as long as customer service is of high standard. It is an intelligent tool that
marketer use for demographic factors such as businessmen and women to enjoy high profile and
luxury life. Strategy used by Virgin Group is competitive pricing plan and cost is high because of
quality. Customer needs, wants and requirement should be fulfilled in order to survive in market
and gain competitive advantage (Emery, 2012). In this way,Virgin Group can achieve their goal
and objective through help of pricing strategy.
Successful business depends on trust of parties such as executives, managers, customers
and employers, competitors and suppliers. There are six ethical terms for trust formation upon
ethical business practices such as laws, integrity, values, ethics, morals and character. Every firm
need to follow ethical values and principles for effective running of business. Ethics is set of
rules which describes acceptable conduct in society and guide for moral daily living. Virgin
Group has some set objectives which should be achieved through ethical values. If organisation
follow moral values and principles then loyalty is created. Every objectives need to be achieved
in ethical manner so that more customers are attached with firm. With proper developing code of
ethics, entity make clear that members and employees should work in ethical manner. In case of
failure of ethically value by senior management then there is no meaning of code of conduct.
Thus,Virgin Group can achieve values by following ethical practices and applying standards in
dealing with their employees and staff. Ethical marketing practices of company helps in attaining
its objectives in ethical manner.
III Marketing concepts and principles used in The Virgin Group's daily organisational operations
Marketing concept is philosophy which firms analyse in order to know about need of
their customers and makes decision accordingly to satisfy them better than competitors. There
are various marketing concept used by Virgin Group out of which two are very important which
are described below:
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Selling Concept- Virgin Group has effective promotional tool for communicating its
product in market. Customer will buy goods only if company have effective promotional
strategy. Thus, in order to increase production, sales and profit, organisation should focus on
selling concept for their consumers (Gordon, 2012). For example, Virgin Group can use social
media tool such as newspaper, magazine for selling their products to their customers in effective
way.
Societal Marketing Concept- This concept focus on want, need of target market and
delivering effective value to its customer better than competitors. This concept aim is to focus on
both society as well as individual. Virgin Group provides benefits to both community and
consumer and producing accordingly as per their requirement. For example, Virgin Group should
follow corporate social responsibility for providing benefit to society which create image and
brand value of firm.
Principles used in The Virgin Group's daily organisational operations in terms of 7Ps,
STP and marketing research are described below:
Marketing Mix
Marketing mix is set of tools which firms uses in order to pursue its objectives in target.
It has mainly seven level of marketing decision making such as product, price, place, promotion,
process, physical evidence and people. Marketing mix of Virgin Group are described below:
Product- Product is item which is produced or built in order to satisfy needs of particular
group of people. It can be intangible or tangible as in form of goods or services. Virgin Group
offer various competitive service and products. Its products can be related travel, books, holiday
packages (Hair and et. al., 2012). There are some independent products available for consumer
that is V2 music and fitness clubs located throughout UK.
Price- Price means amount customer pays for product which determine firm's survival
and profit. It has impact on entire marketing strategy that affects sales and demand of product
and create perception in customer eye about product. Pricing of Virgin Group is highly sensitive
which is according to affordability and demand of customer. For example, Virgin Atlantic has
variety of six price level for individual.
Place- It means distribution of products in place which is accessible to potential buyers.
It also helps in understanding of target market and accordingly distribute products. There are
different distribution strategies such as intensive, selective, exclusive and franchising. Virgin
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Group has various channels of distribution which is increasing according to change in trend
towards achieving consumer satisfaction. Virgin Group deliver goods to clients at any position in
globe with helps of electronic or physical delivery. It is operating business in Tokyo, Cape town,
Hong Kong.
Promotion- It is important component which boost sales and brand recognition. It
composed of various elements such as sales organisation, advertising, public relations. This
depend on budget, target market and message for communicating. Successful advertisements
increase sales and more revenue at market place. Promotion helps in growth of Virgin Group by
taking information about service and product for their clients. Success of Virgin Group credited
to workforce who meet needs of changing environment (Kim and et. al., 2012). Virgin Group
uses various promotional strategies such as newspaper, magazine, public relation.
People- It include individual related to business and target market and are important
because through help of them goods delivered and service is provided. It is necessary to train and
hire right people for running of business. Virgin Group has various people for running company
such as employees, staff, manager, executive, employer and others (Kucherov and Zavyalova,
2012).
Physical Evidence- It means way through which products and services are perceived in
marketplace. Virgin Group has its market globally that provide services to their customer. In case
of Virgin Atlantic, it has three places in UK which has 29 destinations. It carries out sales
operations, baggage claims, call centre, customer relations departments task.
Process- Process and system of company affect execution of service. Pay system, sales
funnel, distribution channel and other procedures should be effective for working of business. In
case of Virgin Group of airline provide good reservation or booking system to their customers.
STP
Segmentation- It is first process for dividing market of potential customers into segments
and groups based on characteristics. It is created for consumers responding similarly to
marketing strategies and having same traits, interests, locations and needs. Virgin Group has
done segmentation on basis of demographic factors such as income level, gender, age group.
Targeting- It is second stage after segmentation in which marketer select segment or
series and target them. Here, efforts and resources will be targeted at segment for providing good
and service. It is group of customers for which firms design maintain and implement marketing
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mix suitable for preference and need of that group. Targeting of Virgin Group has done on basis
of income level as it focus on providing high quality goods which is not affordable by every
people. Also market is targeted on age factor which produces products for all age group
individual. Target group of Virgin Group is high level income group people of society who
prefer high quality goods.
Positioning- It is position or place of brand in minds of customers and distinguished
products from competitors. For creating position company need to produce unique features of
their goods and create suitable image through mix. Virgin Group has good brand value and
image in market as it does not have require more tools for positioning in market (Michaelsen and
Sweet, 2012). Virgin Group is large as well as old corporation when it enter into market it was
difficult to survive but by maintaining high quality goods for their customers it gain positioned in
market. USP of this company is to serve good product with high quality and fufills needs and
requirement of their clients.
Marketing Research
Marketing research is set of processes which links customers, procedures and end users to
marketers through that information is identified and defined for opportunities and problem. It
specifies particulars required to address designs, issues, methods for collection, implementation,
analyses results, finding and implications. It is also known as systematic gathering, analysing and
recording of quantitative and qualitative data and issues related with marketing of service and
products. Virgin Group use primary and secondary data for marketing research in order to know
about need, want and preferences of individual and accordingly work. This is important step for
every company to know their target consumer and produce as per their requirement. For survival,
growth, sustainability and profitability of firm it should do proper research regarding marketing,
competitors, future scope. Thus, it helps in gaining competitive advantage in market and work
place and also creating value, goodwill and image of firm (Sah and Fugh‐Berman, 2013).
IV Relationship of marketing functions to other functional areas in organisation
It is very necessary for organisation to establish effective relationship with other
departments for achievement of goal and objective. The relationship of marketing functions with
other functional areas at Virgin Group are described below:
Human Resource Management and Marketing Functions- Human resource
management is very important department in an organisation. HR department should conduct
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training and development programmes for new hire or existing employees. Marketing
department identifies requirement of people for different activities. Both departments have to
functions collectively for achieving goal and objective of business. For example, if company
have to conduct activities related with marketing then particular department identifies number of
people, skill to HR department.
Production and Marketing Functions- Production is way of converting input into output
through process. It is act for creating output, good, service which has some value and contributes
to individual utility. Virgin Group should first analyse requirement of customers and produce
accordingly. Marketing functions assist in providing raw materials to production department and
then final good is produced. For example marketing assess need and requirement of customer
and accordingly provide raw material to production. This fulfils objective of company as well as
demand of consumers.
Finance and Marketing Functions- Finance department of every organisation is very
important to make proper budget and plans regarding finance. finance department of Virgin
Group allocate funds for different departments which helps in running operations smoothly.
Marketing requires money for performing various activities such as promotion, Both function
work effectively for achieving goal and objectives. (Smith, 2014).
Legal and Marketing Functions- This department deals with legal matters of company
and maintain & prevent any issues arises in business. It plays critical role in employee policies,
handling court cases, reviewing and drafting contracts and used in entity for managing various
degrees. Marketing functions helps in knowing those issues which may arise in firm between
different managers and getting solutions through legal department. Legal function helps
marketing department in conducting promotion activities in ethical and legal way.
Marketing department has cross functional relationship with other department existing in
organisation. Here, Virgin Group is interrelated with each and every department for achieving
goal and objectives. As each are experts in some field to perform task. For example, requirement
of funds required in business is depicted by marketing functions and way of using denotes cross
functional department with marekting (Alserhan, 2017).
3 CONCLUSIONS AND RECOMMENDATIONS
From above assignment it can be concluded that marketing principle is important in
organisation. This report is based on Virgin Group which has followed different marketing
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strategy for surviving in competitive market. Marketing and societal marketing concept are
mostly used by firm for their customers and society to get competitive advantages. Virgin Group
has different product, branding and promotional strategy such as social media, website, wider
range of products for their clients. This company follow competitive pricing strategy which focus
on high quality goods than their competitors. As it has segmented market on basis of
demographic aspects such as age group, income level and purchasing power of people.
From above analysis, Virgin Group should focus on customer based pricing and produce
as per their requirement. It has followed societal marketing concept to provide benefits to both
customer as well as society. There should be cross functional relationship with other areas in
order to complete project within given time period. As marketing function has different role
which is related with other areas such as accounting, finance, human resource and legal in order
to achieve goal and objective in market. Virgin Group should use strategies which provide
benefit to society as well as firm both in long term and short term needs. Thus, by following
above concept, maintaining relationship with other department areas it can survive in
competitive market and enhance profit and sustainability.
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