Vodafone: Analysis of Marketing Principles and Strategies

This report provides a comprehensive analysis of Vodafone's marketing principles. It begins by outlining the marketing process, including analyzing opportunities, selecting target customers, developing strategies, and implementing the marketing mix. The report then explores the concept of marketing orientation, discussing its benefits such as customer satisfaction and loyalty, as well as potential costs like lack of creativity and high research expenses. Furthermore, the report delves into the micro and macro factors that influence Vodafone's marketing decisions, such as competitors, employees, political, economic, social, and technological factors. It examines market segmentation strategies, including geographical, demographic, behavioral, and psychographic segmentation. The report also analyzes various targeting strategies, such as undifferentiated, differentiated, and concentrated marketing. Finally, it addresses buyer behavior, including social and personal factors, and their impact on consumer purchase decisions.

MARKETING
PRINCIPLES
1

Table of Contents
INTRODUCTION ...............................................................................................................................3
TASK 1.................................................................................................................................................3
1.1....................................................................................................................................................3
1.2 ...................................................................................................................................................4
Task 2....................................................................................................................................................5
2.1....................................................................................................................................................5
2.2....................................................................................................................................................6
2.3....................................................................................................................................................7
2.4....................................................................................................................................................7
2.5....................................................................................................................................................8
TASK 3 ................................................................................................................................................8
3.1....................................................................................................................................................8
3.2....................................................................................................................................................9
3.3....................................................................................................................................................9
3.4..................................................................................................................................................10
3.5..................................................................................................................................................11
CONCLUSION...................................................................................................................................11
References..........................................................................................................................................12
2

INTRODUCTION
The term marketing principles refers to the range of processes that are related with
ascertaining the needs of customers and than developing products and services accordingly. The
marketing is important concept that includes range of activities in involved in transfer of products
from provider to the final customers (Hastings and Domegan, 2013). The marketing mix elements
involve, product,price, place, promotion. It also includes additional elements such as people,
positioning and packaging.
In this report, various aspect of marketing principles will be studied in the context of
Vodafone. It is multinational telecommunication company, founded in 1991 and headquartered in
London. The vision of Vodafone is to become the communication leader in an increasingly
connected world. The learning be shown regarding the different elements of the marketing process.
The explanation regard will ing how macro and micro environmental factors impact marketing
decision will be provided. Thereafter, how products can be developed to sustain competitive
advantages will be explained.
TASK 1
1.1
The marketing process takes into consideration the different elements which are explained as
follows:
 Analysing the marketing opportunities: In order to assure successful marketing, the
organization has the opportunity to ascertain the present and future market trends. In
addition to this, the entity is required to assure present availability of resources to support
different marketing activities (Coduto, 2015). With the help of marketing research, Vodafone
can determine its own strength and weakness of the entity. On the basis of it, new products
can be designed to match different needs of customers.
 Selecting the target customers: It is a important step which enable the company to choose
the target customers for its different products and services. With the help of segmentation,
the company can divide the market into smaller and distinctive parts based on different
aspects and choose the best one for its offerings (Lilien, Rangaswamy and De Bruyn, 2013).
 Developing the marketing strategy: It is the next step after the selection of target
customers. The marketing strategy consist of value proposal through which all the marketing
objectives are segregated into one comprehensive plan (Kotler, 2012). A good marketing
strategy will provide a general vision of accomplishing objectives and reaching the desired
3

position. It will also help in taking decision regarding, segmentation, targeting and
positioning etc.
 Marketing mix decision: The marketing mix is the blend of four 4ps of marketing, product,
price,place and promotion. It is the tactical tool that is adopted to gain the attention of
maximum customers and thereby boost the sales. The successful marketing mix also enable
the entity to render better value to its buyers and beat rivals (Hamid and Khan, 2015). The
marketing mix can be defined as process through which company decide what to produce,
how much price must be charged. It further involve the way in which product will be
delivered to the customers and how entity will communicate its offerings to final buyers.
 Implementation and control: It is important aspect related to marketing process. With the
help of this method, the management and employees of Vodafone can identify and measure
whether they had planned and performed diligently throughout manufacturing process so as
to meet the customers requirement (McAuley, 2014). In case of any deviation between
actual and expected objective, proper control must be exercised by the responsible
personnels.
1.2
The marketing orientation can be refereed as business model that emphasis on providing
products and services developed as per the customer wants, needs and preference. It includes
activities such as market research to ascertain the important information related to customers. There
are many advantages of marketing orientation (Chandrasekar, 2010). Such as, it leads to maximum
customer satisfaction as products are designed considering their needs and wants. In addition to this
aspect, marketing orientation help in building customer loyalty. Further, effective marketing
orientation can help the firm in boosting the sales of it offerings. Through, marketing orientation,
Vodafone will be able to have customer centred approach (The impact of marketing orientation.
2014). In addition to this aspect, there are several benefits as well as cost associated with marketing
orientation. The detailed explanation of which is as follows:
Benefits
 Customer satisfaction: From the study of Vodafone, it has been identified that company
has adopted marketing oriented approach which enable the business to develop products
according to the needs and wants of customers. It is effective method that help in
maximizing the customers overall contentment level with the brand (Saxena, 2009).
 Customer loyalty: The marketing orientation is effective method through which
organization increase its brand worth in the eyes of customers. This further results into
4

improved customer loyalty leading to maximum buyer retention and also help in attracting
new customers (Jayachandran, 2004).
 Competitive benefits:As inception, through marketing orientation, company develop
products considering its customers. This further provide competitive benefit to firm over its
rivals in market. In this respect, Vodafone design its telecommute services as per the needs
of customers and get an edge over its rivals like, Airtel, Idea etc (Caemmerer, 2009). Repetitive buying: The customer orientation aspect enable the entity to develop buyer vale
that enhance customer loyalty and stimulate them to do frequent buying. This further results
into increased sales of business leading to more revenue.
Cost
 Lack of certainty: The marketing orientation pays more emphasis on the needs and
demands of customers. However, it is hard to anticipate the needs of buyers as they keep on
changing with time. In case of lack of predictability, the overall marketing orientation can
fail resulting into wastage of time and resources (Dibb and Simkin, 2013).
 Lack of creativity: Since, in marketing orientation the products are developed as per the
needs and preference of customers. It further restrict the company to add its creativity in
those offerings. Due to lack of innovation, the tech-savvy customers will move towards rival
brands and will impact the business of company (Fanz and Zou, 2009) .
 High research cost: To ascertain the different needs and preferences of customers, company
is required to invest ample number of funds into marketing activities. Due huge investment
in to market research entity may be forced to deduct cost in different areas (Ferguson and
Hlavinka, 2007).
TASK 2
2.1
There are various micro factors which influences the marketing decision of the Vodafone are
as follow:
 Competitor; There are various competitor of Vodafone which serves the same type of
products and services to the people. (Dibb and Simkin, 2013. ) It affect the Vodafone
company so it require to keep the record of basic things related to competitive environment
to influences the marketing decision.
 Employees: employees influences the product quality and profitability of the Vodafone. It
is important to fulfil the needs of the workers because they play important role in the
organization (Hamid and Khan, 2015.). Employee are the part of organizations it is
5

necessary to keep them satisfy so that they produce quality products.
 Shareholder: Vodafone can used new technology for increasing it sales. It also benefits the
shareholder (Hastings and Domegan, 2013). They always try to implement new strategy
which is effective for increasing the sales and profitability of the organization.
 Suppliers: There are many ways through which decision of Vodafone is influences by the
suppliers (Stavros, Pope and Winzar, 2008). It in market there is one supplier then
marketing power will be in supplier hand. Suppliers are important for the company because
they provide the resources to them.
Macro factors influences the decision of Vodafone.
 Political factor: The political factor affecting the Vodafone company. It includes EU
roaming for decreasing the charge for the user of their mobile phone abroad by 60% (Tapp,
and Spotswood, 2013). it is consider as political factor if any government engage through
legislation in markets where Vodafone operettas.
 Economical factors: the inflation rate affects the market decision of the Vodafone. Many
global issues like global financial crisis are the economic factor which affects the Vodafone
(Fanq and Zou, 2009.). The growth of GDP and inflation rate in the market can adversely
decrease the profit of company.
 Social factors: There are many social factor which affects the the Vodafone. People are
working from this change of pattern increasing trust in communication technologies
(Hastings and Domegan, 2013).
 Technological factor: Innovation in communication technology such as online chatting and
messenger affects the Vodafone strategy (Lilien, Rangaswamy and De Bruyn, 2013).
Company need to introduce new innovative products and services so that any advance
technology not affects there sales.
2.2
There are various market segments which Vodafone can use to target their customer.
 Geographical segments: On the basis of geography the people are divided in market
segmentation. Vodafone can expand its business in new geography market (Wang, 2007)..
 Demographic segmentation: This segmentation can also be used by the Vodafone. In this
right people are targeted for buying their company products and services (Dibb and Simkin,
2013). This segmentation has its own variables such as gender, age religion etc.
 Behavioural segmentation: On the basis of behaviour of the human the segmentation is
done. Human behaviour always changes so it is required to make products and services
6

according to the customers needs and demand (Dibb and Simkin, 2013.).
 Phychographic segmentation: in this type of segmentation markets is separated on the
basis of lifestyle and value and beliefs of people (Hamid and Khan, 2015). Outdoors
recreation and fitness is the segmentation is fit to the psychographic.
Vodafone can target the market on the basis of the geography segmentation. There are many
new area where Vodafone can provide it service and products. It can also target the geographical
area outside the country.
2.3
There are different targeting strategy related to different products and services of Vodafone are as
follow:
 Undifferentiated strategy: In this type of strategy business send some promotional
message to everyone in a markets. It will also use single strategy for targeting a different
market (Lilien, Rangaswamy and De Bruyn, 2013). This strategy is best for the Vodafone to
target its customers by applying one strategy.
 Differentiated strategy: It is another targeting strategy, that can be used by company. As
per this strategy, organization use different marketing technique for contrasting segment.
Such as to attract the premium segment, entity can use celebrity endorsement, for attracting
students, text messaging, social media can be used etc.
 Concentrated marketing: only one segment is targeted in this strategy with a marketing
mix. Vodafone will try to understand the need and demand of the products and then design a
marketing mix.
Then McDonald will use concentrated marketing strategy for targeting its customer. It can
serve the products according to the requirements and demand of the customer. They will also
design a marketing mix fro attracting their customer to buy their products and services (Hamid and
Khan, 2015). In addition to this e stated be differentiated strategy is more suitable for Mc Donald's.
Hence, organization can efficaciously grow in local and international markets with differentiated
strategy. Therefore can draw in maximum customers having different marketing preference.
For instance customers with millennial age can be impacted with internet marketing, social site,
mobile applications, instant messaging and celebrity endorsement. On the contrast elderly
customers can be draw in by advertisement in tv, hoarding, magazine etc.
2.4
Buyer behaviour can be defined as the organized procedure used by consumer while making
decisions regarding purchase. The buying behaviour ascertain those element that inspire customer
7

to acquire the products and services of particular brand over other competitor. By consideration to
buyer behaviour impelling marketing strategies can be configured or important adjustment are done
in existing promotional strategy by company. In different condition buyer behaviour is affected .
The factor are as follow:
 Social factor: There are many social factor such as role, status and family which affects the
buying decision. There are many costumer use social media and they are influenced by it.
 Cultural factor: Vodafone require to analyse the culture of people and provide them
service according to their requirements. In cultural factor it includes culture of consumer
and social class (Miletsky, 2009).
 Economic factor: The change in economic constituents have direct impact on the buyer
behaviour. For instance, decrease in the personal income have direct impact on the sales as
customer will incur less expenditure and save more. Further, decrease in tax rate will leave
more income to individual which it can further spend on acquiring various goods and
service.
 Personal factor: There are many personal factor such as occupation, age , interest etc. age
is the biggest factor which influences the buying behaviour of Vodafone Customer . Further,
at present customer are more informed and purchase product after comparing it with rivals
in terms of quality of services, price etc. therefore,
2.5
Vodafone product positioning strategy result in the increase in the demand of products and
sales. It can target the customer by providing he service according to the needs and demand of the
customer. It can target the Customer on the basis of their age. There are many elder generation
because they use a mobile phone so much. It can give benefits to the customer by provided them
free roaming service. Positioning by attributes or benefits it can provide a free local call service to
its Customer and can also give other benefit (Dibb and Simkin, 2013).
TASK 3
3.1
The competitive advantages is viable concept that states that how products and services can
be developed so that company get a favourable of superior position in market. It is important aspect
that will, help Vodafone to become more influential and profitable as compared to its rivals. There
are various ways that can help firm to gain competitive advantages (Miletsky, 2009). Such as,
charging less prices for the same kind of offering, improved quality and features in products etc. In
order to affirm with competitive advantages,company can match its core competencies to the
8

opportunities. In order to develop products to sustain the competitive advantages Vodafone can
consider the use of following Porter generic strategy . Description of which is as follows:
 Cost leadership strategy: As per this strategy, organization can exercise cost as a
important tool for building and preserving the higher performance in market. In this respect,
Vodafone can intensify its earnings by reducing redundant cost ( Richter, 2012). Thereafter,
organization can gain market share by minimizing its prices along with assuring proper
earnings from each sale as a result of cost diminution. Further, it can be stated that cost
leadership is beneficial as it help business to assure minimal cost of operations in the
industry.
 Differentiation strategy: It is another important strategy which facilitate the organization to
develop unique and differentiated products in comparison with its rivals. Therefore,
Vodafone concentrate on aspects like property of its services, functionality, trade name,
durability, reliability and other factors that assist in gaining differentiation in market
(Stavros, Pope and Winzar, 2008).
 Focus strategy: With the aid of this plan of action, organization can emphasis on small
target segment having numerous revenue making possibilities. This strategy will enable
company to focus on specific customer segment with unique requirements. It is important
method through which firm can increase popularity of its brand, retain loyal customers and
attract new customers (Stenroos and Makkonen, 2014).
Presently, Vodafone is focusing on differentiation strategy and thereby provide, innovative
and user friendly services to customers.
3.2
The distribution system play a viable role in increasing the convenience of the buyers. It can
also reflected as a important competence for the firm. With the help of effective distribution system,
company assure its products are accessible to the target customers (Stover, 2007). The potential
sales of product is mainly dependent upon the kind of distribution system adopted by the company.
There are different types of distribution system that can be used by Vodafone such as:
 Intensive distribution channel: It is important strategy that help entity in rendering wide
range of products through numerous stores. It assure maximum availability of products and
services of the brand and increase the convenience for buyers (Tapp and Spotswood, 2013).
 Selective distribution channel: In this strategy, company use modest number of retail
stores in a geographical location to offer its products and services. With the help of this
strategy,company will be able to choose a store at particular location for offering its products
9

(Wang, 2007).
 Exclusive distribution channel: It is another type of distribution channel where there is
only single producer, retailer and wholesaler that operates in a specific geographical point.
In this case, brand offers its products one or two chief stores in the market.
Here, Vodafone is using intensive distribution channel to assure maximum reach among customers.
There are many retail shops that offer product of brand. In addition to this, own dedicated stores are
also available to provide direct services to customers.
3.3
Price is one of the key element that determine the present and future sales of brand. The
prices are developed after considering the business objective and market conditions. Further, it has
been identified that price is viable component of marketing mix and thus Vodafone should
determine effective strategy to facilitate how products must be priced so as to acquire longer term
objective of firm (Hastings and Domegan, 2013). The different strategies that can be considered by
entity to facilitate pricing are described as follows:
 Price Skimming: With the help of this strategy, firm can charge superior price during the
initial launch of offering and trim down the same after some passage of time. It is effective
strategy through which company can build its profit margins.
 Penetration pricing: According to this strategy, company can determine the reduced prices
as compared to rivals for its products with the purpose of gaining attention of maximum
customers and improving market share. With this strategy, company can restrict the entry of
new competition in market (Stenroos and Makkonen, 2014).
 Premium pricing: With this strategy, the company charge higher prices for rendering better
quality products and services to customers.
 Competitive pricing: In order to survive in tough competitive market, company charge
prices similar to that of its rivals. Therefore, efforts will be done by company to price
products as low as possible ( Richter, 2012).
3.4
Promotional activities are incorporated to develop the connections that change into leads and
sales. With the help of effective promotion, company can boost the sales of its offerings and
generate higher revenue With the help of strong promotion, company can easily accomplish its
marketing objectives (Tapp and Spotswood, 2013). Promotion is important marketing mix element
which further involves various activities which are explained as follows:
 Advertising: It can be defined as a paid kind of communication that assist firm in reaching
10

wide range of audience at low per unit cost. In order to facilitate advertising Vodafone use
various mediums such as television, radio, billboards ads in between movies, direct mail,
social media etc. Therefore, company can inform its customers about new products, services
and offers provided by it (Satell, 2013).
 Sales promotion: It is impelling method that can be adopted by organization to boost the
sales of its offerings. It refers to use of special offers, discounts, trade shows and exhibition
etc. Such as, Vodafone phone provide free connection etc (Miletsky, 2009).
 Personal selling: It is a procedure of intensifying the sales of business using efforts of sales
personnel who have direct communication with customers and inform them about the
products of company.
 Sponsorship: It is effective method through which company organize a event to generate
favourable reviews about its products and services. It further assist in building positive
reputation of brand in market (Ferguson and Hlavinka, 2007).
 Direct marketing: It is widely used method in present time which enable organization to
contact directly to consumers through telecommunication, mobile apps, interactive portals
etc. With this aspect, Vodafone can take feedback, suggestion and critical review of its
services directly from customers (Stavros, Pope and Winzar, 2008).
3.5
The marketing mix consist of additional elements apart from the four main Ps namely,
product, price, place and promotion (Caemmerer, 2009). The additional marketing mix is a
combination of constituents that assure success of marketing campaign and thereby maximum sales
of companies products. The addition elements are as follows:
 People: This aspect relates to dominance, skills and quality of employees of Vodafone that
can impact the offerings of brand in any situation and channel. possessed by entity to
represent the brand among customers (Wang, 2007). The company must have effective
workforce that can persuade customers to purchase the offerings of brand.
 Process: It is important function which means the actions and system that assist
organization in giving prestigious services to its customers. It further facilitate marketing of
business ( Richter, 2012).
 Physical evidence: It refers to the physical look, layout and design of the store that inspire
customers to visit the outlet and make purchase. It is important factor that contribute in
increasing the footfalls of consumers in store (Fanz and Zou, 2009).
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CONCLUSION
Summing up the entire report, it can be concluded that The marketing is a broad concept that
includes, advertising, shipping, storing and selling. The main concern of marketing management is
to optimize the market performance of present products and services and to successfully launch
products into a new or existing market. From the report, it has been identified that marketing
orientation have benefits like increased customer loyalty, sales etc. It can be stated that the
competitive advantage help enterprise in rendering greater value to customers through
differentiation.
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