Unit 2 Assignment on Elements of Marketing Principles

Unit 2 Assignment on Elements of Marketing Principles

Unit 2 Assignment on Elements of Marketing Principles

Introduction

Marketing is termed as the activity of management so that customers can be served effectively with profit. Also the marketing is defined the sequential procedure to deliver the product with desired quality and benefits to customer for organizational purpose. The report will discuss the various elements of marketing process along with benefits and costs on marketing orientation. Unit 2 Assignment on Elements of Marketing Principles will also discuss the environmental factors on marketing along with segmentation criteria and strategy for products. The report will also illustrate the positioning of new product and buyer behaviour. Later report will discuss the development of product, distribution, pricing and promotional activities for market benefits and marketing mixes. The report will determine the differences in marketing in domestic as well as international market with the differences in delivery to business rather than the customers.  

Marketing principles  

Task 1

1.1 Various elements of the marketing process

Marketing process of car sales organization can be classified into four categories to accomplish the business objectives effectively.

  • Situational Analysis: The requirements and demands of the customer must need to be identified in situational analysis process so that customer can be addressed effectively to meet the organizational objectives. In cars business, the customers are expected to have the maximum features within their budget and need the transparency against their buys. The cars sales men can analyse the demands and requirements according to customers and make advantages with occasions.
  • Marketing strategy: To reach the target customer with desired benefits and advantages, it is necessary to build the strategy. Cars organization normally promotes the business with the appearance at global and popular markets so that customers can reach easily for their purchase and queries (Kotler.et.al.2015).
    Elements of the marketing process
  • Marketing tactics: To sale the product to customer with loyalty, organizations need to target the actual requirement of the customer. Also the market of competition needs to be observed to draw the customer attention towards the beneficial purchase. Sales men training and development and better presentation to stores are some of popular marketing tactics.
  • Implementation and control: The marketing tactics and strategies are used to make the practical benefits with the help of implementation and control in sales. Cars business can implement the strategies to know their effectiveness in marketing and control them according to demands (Wilson and Gilligan, 2012).

1.2 Benefits and costs of a marketing orientation

Marketing orientation defines the activities and reaction of the organization to meet the specific strategic goals. In order to win the market, organization can use five kinds of concepts: production, product, selling, marketing and social marketing. Each orientation has own benefits and costs for the organization.

Benefits:

  • Organizations can achieve high reputation and brand values with marketing orientation as Honda has achieved with the branding strategies.
  • The marketing orientation helps in innovation of new products from the organization and encourages the employees to achieve the high performance.
  • It also helps to be aware with the ongoing customer requirements and demands along with trends in market so that new products and strategies can be prepared to meet the market advantages (Kumar.et.al.2011).

Costs

  • The rapid changes in marketing require skilled market intelligence force to react with effective plans.
  • In order to process and store the information in an organization, the business needs to establish the technical setup in workplace so the technical analytical results can be obtained quickly.
  • The cars business is being populated with new products to meet the requirements of all customers so organizations in car selling business need to have investment and improvement capabilities to sustain in market.

Task 2

2.1 Macro and micro environmental factors

The marketing decisions may be influenced with the environmental factors as the variation in business associates and outer environmental factors affect the approaches to meet desired benefits.

  • Micro environmental factors: Micro factors are tightly related to the operation of the business and have direct impact on the marketing decisions. Some Micro environmental factors are discussed below:
  • Customers: The target customers and their satisfaction towards the products always influence the marketing decisions in organization.
  • Competitors: The strategies and pricing of the competitor for the same featured product and service influence the decisions in car selling business.
  • Suppliers: The demand and requirements along with availability of suppliers in business is required to make market decisions effectively (Douglas and Samuel Craig, 2011).

The environmental factors of marketing

  • Macro factors: Factors that are not related to business processing but have impact on the business are macro factors. Macro factors are:
  • Demographical: The geographical conditions of location affect the marketing to define the alternative for the location with demographic differences.
  • Technological: The rapid technical changes and trends affect the marketing plans to cover the market with existing technologies.
  • Economical: The income and expanse capabilities of customers need to be considered to make the appropriate marketing plan.
  • Legal: The legal procedures and issues on specific product may become the barrier in marketing decisions.

2.2 Segmentation criteria

Segmentation defined the classification of target customers according to various factors. For example, customers can be grouped according to their interest, age or similar demands. Segmentation helps achieve high benefits and customer satisfactions along with opportunities to grow and sustain in business.

  • Demographic segmentation: Thee market can be covered with the demographic characteristics as age, gender, ethical values and cultural impacts may be differ from the other customers and need the special marketing to make benefits in business. In this manner, the market can be viewed as the geographical areas separated with their characteristics (Gaston-Breton and Martín Martín, 2011).
  • Psychographic segmentation: Market also can be segment on the basis of customers’ living pattern, attitudes and activities. The characteristic of customers in social environment affect the marketing decisions.
  • Behavioural segmentation: The customers’ intention to look for the benefits and features can be use to market the product and services with segmentation. Also the product usage rates in customers define the kind of customers in business.

Market segmentation of an automobile business

  • Geographical segmentation: the market customers also can be covered according to their geographical differences. Various strategies can be prepared to segment the customers and to make appropriate marketing decisions (Wedel and Kamakura, 2012).

2.3 Targeting strategy for a selected product/service

Various organizations use the various strategies to meet the market benefits and customer satisfaction. For example, the car industry uses the occasional discount offers to target the customers. Also they offer the free accessories with products to serve customer satisfaction. Car industry also uses the concept of lower down payments and easy to fill procedure to sale the products. In many cases the amount is segmented to sale the product to customers. The presentational tools and advertisements are used prior to launch of the product to acquire the market and to determine the requirements in market. Cars with special innovative features are promoted in market and trade fairs to acquire the attention of customers and to make the benefits on special occasions (Solomon, 2014). Many vendors also offer the free maintenance over the year to sale the product and services. In this manner, the car industry is targeting the customers with attractive offers and promises in business.

2.4 Buyer behaviour affects marketing activities in different buying situations

The buyers react to marketing strategies according to buying situations. For example, the customers have influence with their personal beliefs, culture, social and psychological needs. Various countries have different living pattern and customers are also vary in behaviour and beliefs according to their social values and personal emotions. Addition to it, the marketing strategies and activities have influence of buying time and potential of buyer in specific countries and location. The behaviour of the customers according to their age and region along with social beliefs has great affect on their buying power to products and services. The personal factors like the availability, language, living standard etc have impact on the buying situations as their choices on products and pricing may be vary from others (Sorescu.et.al.2011). In this manner the psychological needs and demands also affect the market selling of an organization.

2.5 New positioning for a selected product/service

The products and services in market can be sold effectively by balancing with the view of the buyer or customer. The positioning is required to make the strong background to sale the products with benefits and to cover the market. For the positioning of the new car in industry, the organizations can analyze the strategies and features in the products of competitors. Also the innovative features can be offered in cost effective manner along with some other additional services so that customers can be made interested and inclined towards the products. Proper positioning also required the analysis of the market for the time to appear and to offer sales. Right time entry in market helps to achieve the maximum benefits and customers (Cooper and Kleinschmidt, 2011). The product can be designed according to already available products so that something new can be used as the key selling point for the product. The new cars and accessories can be sold on the basis of the inclination on market and to set the pricing according to market opponents and customer potentials.  

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Task 3

3.1 How products are developed to sustain competitive advantage

The market competition is being constraint to lower pricing and higher quality. In such cases, the customers are looking for the maximum returns from their investments. As a market manager for the large bank, the services can be designed according to the customers so that loyalty can be increased and business can be move into stable positions. The organizations use the products as the unique in feature or price to gather the market attention and to make the maximum sales within a short time. It is also observed that only the innovative changes in services and products can serve the customer effectively and help to retain in market. The product needs to develop according to demands and requirements of the customers along with proper pricing so that customer can be reached (Porter, 2011). Addition to it, the product must be according to trend and needs to be promoted in market to meet the advantages for the sustainability. Proper analysis of market and competitors can help to develop the beneficial product for the organizations.

3.2 How distribution is arranged to provide customer convenience

The customer convenience can be delivered with the effective distribution in banking sector. The banking sector needs to deliver the ATM services to customers in which ATM cards are sent to customers on their postal address and then they contact the breach to obtain their PIN numbers. In this system, it is required to deliver the cards within seven days and to respond them with secret codes. For that, distribution channel needs to be faster and liable (Heskett, 2013). Also the banking sector use the transmission of customer information during their login on internet banking and shopping cards so that distribution of information as well as physical documents should be faster for the customer convenience. The timely and secure delivery of the information to customers can enhance the loyalty and the perception towards the bank. For example, the Barclay banks have effective distribution of information and documents to customers to conquer their trust and to establish the market image. Bank serves with the customer for services within time so that customer satisfaction can be enhanced with bank.

3.3 How prices are set to reflect an organization’s objectives and market conditions

The organizations need to set the price on products and services according to market conditions and to win the desired benefits. Pricing are set after the proper analysis of the market for the available set of products and features in same price (El Saghier and Nathan, 2013). Also the competitors are examined to ser the pricing. Addition to it, the market inclination is determined and customers are viewed with their trends and interests in specific occasions to set the pricing. The organizations have the objective to earn the maximum profit with higher cost or to establish the market image with lower profit. In both the methods, organizations try to cover the maximum customers and provide the offers of high quality in adorable prices. If the market is going down and the organizations have the stock of products, then they can serve the customers with minimum benefits and earn the market reputation. High prices are also set on products and services to keep the premium services to users. A banking sector can issue various kinds of credit as well as debit cards to customers to earn the profit and reputation according to customer economic level. The price also may be based on the penetration in marketing or to promote the business (Haurin.et.al.2010).

3.4 How promotional activity is integrated to achieve marketing objectives

For the marketing of the product and services, most of the organizations use the pricing as they lower the pricing on products to acquire the market attention and interest. The products are promoted with the lower price, high quality services, on time guarantees and better supports to accomplish the marketing objectives. Organizations use consistency, coordination, repetition and reach as the methods for the promotion of the products. The same product can be available with the other sales on lower prices or can be sold independently to reach customer. Also the products and services can be repeated in promotional activities to make space in market appearance. Customers can be served on doors with new products and services. In this manner, organizations encourage the customers to make use of their products (Davis, 2013). In case of banking, the cards are provided free along with internet banking to encourage their usage but later demand for the cards on existing account needs to pay some extra cost. Therefore, the distribution of banking cards with new account is a promotion activity to reach the customers and the benefits is made with existing users in bank. 

3.5 Analyze the additional elements of the extended marketing mix

There are basically four marketing mix elements: price, product, promotion and place. Addition to it, there is three other marketing mix elements:

  • People: The employees and management of the organizations are additional elements of the marketing to serve the customers with required products and pricing. The work and responsibility of the employees are required to drive the business in benefits along with sustainable relation with customers. Banking sector needs the dynamic staff members to serve the demands and queries of the customer related to their transactions and accounts. The people of the organization can be trained and development for the quality performance.
  • Process: The internal organizational processes and policies needs to be standardize to meet the market advantages. The processes in organizations can be systematic to manage the information as well as to serve the customers within time and quality so that marketing can be done effectively. The process of marketing should be simple and transparent to customers (Huang and Sarigöllü, 2014).

Elements of the extended marketing matrix

  • Physical locations: The organizations need to have the physical evidence or the proof for their identity to establish the market as customer never believes the unauthorised bodies to purchase something. Bank like organizations can choose the own building with popular corner locations in market those are easily reachable to customers.

Task 4

4.1 Plan marketing mixes for two different segments in consumer markets

Various segments of customers can be fulfilled for their requirement from organization. Vodafone UK provides effective services in internet plans for the youngsters and corporate world. Different marketing mixes are used to cover the customers for organizational benefits:

  • Product: Internet service is the product to youngsters and corporate to meet their requirements. In both the segments the Vodafone UK has the different methods of marketing also the service is segmented into packages so that corporate as well as personal requirements can be simplified. Different internet plans are used to make the customer and to serve them with cost effective manner (Wedel and Kamakura, 2012).
  • Promotion: The customers are encouraged to use the internet services from the Vodafone UK as youngsters are issued the SIM cards with the lower prices whereas corporate are encouraged to cover the maximum returns on the regular top ups on the internet recharge. Organizations attract the customer segments with different policies and patterns to sale the product.
  • Price: The pricing on product and services are according to usage and level of use. The corporate has return of internet balance up to a percentage on regular usage where as youngsters are always priced at lower rate to make maximum use of continuous services form Vodafone UK (Hoyer.et.al.2010). 

4.2 Illustrate differences in marketing products and services to businesses rather than consumers

In order to meet the market advantages, it is necessary to work with other businesses as they are enriched source of continuous sale and usage of the product. Vodafone UK also targets the businesses along with customers to make the benefits. The businesses are encouraged to use the services with lower price along with continuous and seamless services so that loyalty can be established in another business to make the revenue (Wild.et.al.2014). In comparison to customers, businesses are treated as the regular source of income in organizations and help to retain in market. The customers are solely users and expect the economic prices on packages to use the service and may move away from the service if they found lower values from competitors. At other side, the businesses can be negotiated to promote the business as well as to serve the continuous services. For instance, the wireless internet tools with huge internet packets are sold to corporate world because they have no such consumption in homes. Also to market the products to businesses, it is required to have strong communication skills along with transparency in deals to acquire the trust (Shani and Chalasani, 2013).

4.3 Show how and why international marketing differs from domestic marketing

The international marketing is differ from the domestic marketing as the organization needs to manage the business operations according to various political and legal factors along with dealing of global competition. There are following major difference in international as well as domestic marketing of product:

  • Scope: The local product has high trust on the organization and has great scope to establish quickly in market whereas the international marketing makes the process decentralised and organization has vast opportunities to expand the benefits with customers (Meissner, 2012).

Domestic vs. International marketing

  • Obstructions: In domestic marketing, organization only needs to deal with local politics and rules. Also the competition in low but in global marketing, Vodafone UK needs to serve the requirements in different manner to make profit which is a tedious task.
  • Profit: The domestic market is constraint to limited profit whereas global marketing is an opportunity to make maximum benefits and to reuse the resource to make market advantages.
  • Relationships: The political as well as customer relationship management is difficult in international market where as domestic marketing is easy to serve the customers with same language and cultural values (Majaro, 2013).

Conclusion

The report has been concluded the various elements of the marketing process along with benefits and cost of the marketing orientation. The report has been also determined the environmental factors on the marketing decisions and segmentation criteria for the market customers. The strategies and positioning has been prepared for product promotion and sale. Later report has discussed the 7P’s with individuals’ explanation with case study. The differences in business promotions rather than to customers have been identified and different segments have been compared. The report has been illustrate the difference between domestic as well as international marketing. 

References

Books and Journals:

Cooper, R.G. and Kleinschmidt, E.J., 2011. New products: The key factors in success. Marketing Classics Press.
Davis, A., 2013. Promotional cultures: The rise and spread of advertising, public relations, marketing and branding. Polity.
Douglas, S.P. and Samuel Craig, C., 2011. The role of context in assessing international marketing opportunities. International Marketing Review28(2), pp.150-162.
El Saghier, N. and Nathan, D., 2013, April. Service quality dimensions and customers’ satisfactions of banks in Egypt. In Proceedings of 20th International Business Research Conference (pp. 4-5).
Gaston-Breton, C. and Martín Martín, O., 2011. International market selection and segmentation: a two-stage model. International Marketing Review28(3), pp.267-290.
Haurin, D.R., Haurin, J.L., Nadauld, T. and Sanders, A., 2010. List prices, sale prices and marketing time: an application to us housing markets. Real Estate Economics38(4), pp.659-685.
Heskett, J.L., 2013. Controlling customer logistics service. International Journal of Physical Distribution & Logistics Management.
Hoyer, W.D., Chandy, R., Dorotic, M., Krafft, M. and Singh, S.S., 2010. Consumer cocreation in new product development. Journal of Service Research13(3), pp.283-296.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132). Springer New York.
Kumar, V., Jones, E., Venkatesan, R. and Leone, R.P., 2011. Is market orientation a source of sustainable competitive advantage or simply the cost of competing?. Journal of marketing75(1), pp.16-30.
Majaro, S., 2013. International Marketing (RLE International Business): A Strategic Approach to World Markets. Routledge.
Meissner, H.G., 2012. Strategic international marketing. Springer Science & Business Media.
Porter, M.E., 2011. Competitive advantage of nations: creating and sustaining superior performance. Simon and Schuster.
Shani, D. and Chalasani, S., 2013. Exploiting niches using relationship marketing. Journal of Services Marketing.
Solomon, M.R., 2014. Consumer behavior: Buying, having, and being. Engelwood Cliffs, NJ: prentice Hall.
Sorescu, A., Frambach, R.T., Singh, J., Rangaswamy, A. and Bridges, C., 2011. Innovations in retail business models. Journal of Retailing87, pp.S3-S16.
Wedel, M. and Kamakura, W.A., 2012. Market segmentation: Conceptual and methodological foundations (Vol. 8). Springer Science & Business Media.
Wedel, M. and Kamakura, W.A., 2012. Market segmentation: Conceptual and methodological foundations (Vol. 8). Springer Science & Business Media.
Wilson, R.M. and Gilligan, C., 2012. Strategic marketing management. Routledge.