Delivery in day(s): 5
Unit 2 Marketing Essentials Sample Solution
According to American Marketing Association, marketing is the process to conception, planning and execution to exchange the products and services with customers to make the satisfaction at customer and seller side. The report will present the review of changing perspective in marketing planning. The report will also evaluate the capabilities of the organization in term of financial, strategic and technical resources to plan the marketing activities. The report will examine the techniques to determine the affect of external factors on marketing plans. Later report will discuss the various barriers in marketing and how they can be overcome through enhanced strategies. Report will discuss the importance of the marketing and will develop the product marketing plan for the organization. The report will suggest the pricing, distribution and communication for the product marketing. The factors affecting the marketing plan will be discussed along with their impact. The report will discuss the influence of the ethical issues in business and how organization can overcome. For easy understanding, the report will also discuss the examples of consumer ethical issues.
Changing perspectives in marketing planning
Marketing is a process to create product and service, communicate and share them with customer so that benefit can be made for seller and buyer. The marketing perspective is being changed for production as customers are seeking for the highly available products. Super drug is trying to produce the products on low price and effort to make it available to most of customers in market (Wilson, 2010). The marketing planning is also being centric to serve the customers with superior and innovative products so that market competition can be conquered. The organization also uses advertisements and promotions for the selling perspectives and to cover the maximum market. Superdrug’ selling perspective is based on the fact to make the maximum sales and encourage the customers to experience the services and products.
In order to sustain with business operations and patterns, organization also serve the customers with cost effective products, easy delivery modes and better communication to solve their queries. Superdrug is focusing on the customer satisfaction in communication and products to meet the competitive advantages. The social marketing is used by organization to know from the users and to deliver the required products and features within effective time and benefits. Organization is making use of social marketing to enhance the relation in business (Lovelock, 2011). The one-to-one marketing is also used with power of technology to reach and serve the customer demands.
Organization’s capability for planning its future marketing activity
Organizational capabilities mean the strength and weakness of organization to meet the objectives through competence and employees. Superdrug organization has the following organizational capabilities to meet the customer and market competitors for objective accomplishment:
Financial capabilities: The organization has expansion only in UK and Ireland so has limited economic strength to produce the products below the competitive price. The organization has somehow higher price than competitors but the high quality and reliability are aid up in financial capabilities of organization to conquer the market competitors (Day, 2011).
Figure 1: Organization's capabilities
Strategic/ marketing capabilities: The services to a limited geographical region help the organization to make the better business strategy and marketing plans. The organization has adding values in beauty products along with a variety of products in fragrance and hair care to present the business as a unique from competitors. The strategic capabilities determine the internal strength in term of employee skills and operations to defeat the competitor in market.
Technological:The organization has services in beauty and fragrance products but has high quality, on time services and innovative ideas through technologies to build and deliver the best to customers in their price. The organization uses web presence and mobile application as part of technological advancement for marketing planning (Barreto, 2010). Superdrug has technology to create and deliver the excellent and innovative products to customers.
Techniques for organizational auditing and analyzing external factors that affect marketing planning
Superdrug organization uses the PEST analysis to find the political, economical, social and technical influence in marketing planning. Auditing is required to make the internal and external operations and strategies effective according to market situations.
The political behavior and satiability in country affect the marketing planning of organization as taxes and mandates vary with the political change in country. Superdrug has impact of taxes and mandates in online services and product pricing.
The influence also can be seen in term of economic stabilities of country. The organization has impact of taxes, inflation, interest rates and exchange cost in marketing. The organization may need to vary the price accordingly to sustain in market but it affects the customer behavior towards organization.
The organization needs to design and market the product according to the social culture, living style, ethics, moral values and demography of customers so that marketing can be done effectively (Koumparoulis, 2013). However, UK and Ireland are similar in culture and needs a little attention to market the product on social factor.
The changes in technology have made the market competitive and customer directed as organizations are getting efficiencies to promote the products and to reach customers. The technical changes and advancements are affecting the marketing of organization to sustain in competition.
2.1 Barriers to marketing planning
The lack of skilled and experienced employees in workplace is barrier for the organization to plan the marketing process. The organization also may have impact of legal framework, social patterns of living, ethical norms and technological advancement in community to plan the marketing for product. Superdrug organization has needs to determine the barriers to make the planning successful to market the product.
The knowledge, ethics, cultural values and attitudes affect the marketing as Superdrug may need to prepare the different strategies to meet the culturally different customers in business. The mismatch of product and culture of customer may reduce the effectiveness of marketing.
The behavior of the workforce against the risk in marketing and time to accomplish may become the barrier for Superdrug organization (McDonald, 2013). The employees’ behavior towards the risk taking nature and conservative marketing determines the marketing planning strength.
The internal operations and strategies may be weaker due to lack of knowledge and expertise in employees to accomplish the marketing objectives. The Superdrug organization has skilled employees but some time need the expertise to make competitive benefits.
Systems and Processes
The management of the system and processes in business environment determine the strength of the marketing. The organization has well managed resources and standard practices along with proper knowledge and data, empowerment, decision making etc for marketing planning.
The lack of organization for the time, people and money are resource level barrier for the marketing planning. Superdrug organization has effective chain of suppliers and employees to deliver the customer demands and products in time (McDONALD, 2016). The organization has strength in money to implement the marketing plans with risk handling.
2.2 How organizations may overcome barriers to marketing planning
Superdrug can use the following strategies and practices to overcome the barrier in marketing planning because the strategies are effective to resolve the issues in cost effective and competitive manner.
The economic changes and emergence of the threats in business should be monitor continuously to align the strategies and plans for marketing benefits. The monitoring of market changes and customer behavior is necessary to make appropriate change in business operations to sustain and attain benefits.
Superdrug organization may outsource the customer relation management, resource availability and product quality management to focus on the pricing of the products. The organization may reduce the prices on products to meet the competitive advantages but it requires the proper analysis of investment and possible outcomes through the reduced pricing (Wymer, 2011).
The concept of new production is helpful to overcome the barriers due to product quality and pricing. The new product may be started in cooperation with other organization but the objective is same to offer the superior quality and long term sustainability. For instance, Superdrug has introduced fragrance products to acquire market attentions.
Customer loyalty program
The competition is increasing in every sector and Superdrug needs to enhance the customer loyalty through the products and services to retain in market. The barrier of marketing planning can be reduced by using the customer loyalty program. The strategies can be aligned to block the competitors in business. The organization uses the power of supplies and raw material to reduce the emergence of new competitors in business.
Weakness resolve strategy
Organization may complete the requirement of skilled and experienced employees along with resource to accomplish the business operations (Chesbrough, 2010). The financial sources can be indentified and supply chain can be prepared to reach the customers effectively.
3.1 Marketing plan for a product or a service
In order to introduce the new product related to beauty care in market, organization can develop the marketing plan with the help of following four basic steps:
Superdrug organization needs to analysis the internal and external business conditions to plan the marketing of new product. The organization needs to determine the financial strength, employee requirements, market scopes, revenue possibilities, scope of sustainability, demand of customer and trend in market. The organization needs to analyze the internal strengths and weaknesses to meet the plan objectives. Also the external facts like market demands and competition along with availability of raw material affect the marketing process. Organization requires to find the related products, their prices, benefits and methods to make space for own product (Hollensen, 2015).
Determine the objectives
Then organization needs to find the business objectives behind the new product. With the new product organization is thinking to attract the customers towards the innovative product and supreme features. Organization has strategies to reduce the price and to enhance the brand image with high availability of product in market. Marketing directions and programs are set to attract the women towards the products. The program of marketing has planned to offer the product through the direct sales and to avail it with great discounts on combo orders.
Customer services and internal marketing support
The organization needs to determine the target customers and support to introduce new product. The customer services should be enhanced to deliver the product with efficiency. The organization needs to aid the support to customers to know their opinions and feedback about the product (Kotler.et.al.2015). The internal support in term of employees, their skills, finance and time should be analyzed effectively to plan the marketing for product. Superdrug can enhance the supply chain and customer relations along with relations to stakeholders and suppliers to meet the demands.
Figure 4: Marketing Plan process
Implement, evaluate and control
At this stage, organization can introduce the new product in market. The organization needs to evaluate the product sales and customer satisfaction along with revenue to know the effectiveness of marketing plan. Superdrug organization should control the production and sales accordingly to retain the market attention, benefits and branding.
3.2 Importance of marketing planning in strategic planning process
For any organization, it is essential to have marketing planning to promote the brand, products and services according to current trends and needs of the market. For marketing planning role of marketing manager is critical as it develop the guideline and control the activities to meet the organizational objectives. Marketing planning involve the consideration of opportunities and potential of organization to meet the strategic objectives. For beauty retail organization, it is essential to develop the marketing plan for promoting it own products and services into different marketing segments. Marketing plan for Superdrug organization will consider the following functions:
Market penetration refers to analysis of market as well as identification of market trends to develop the strategic plan for offering and re-lunching the products and services. By planning of this element, Superdrug management will able to gain the knowledge about the target market needs and able to frame the strategy (Anderson.et.al.2012).
Superdrug is one of leading brand in UK in cosmetic products and services, by market planning the organization will able to expand the services and meet the objectives. By the use of information collected from different sources organization will arrange the resources and target audience needs the management of Superdrug will able to expand the areas of business using the different strategic planning.
Considering the above factors and process for marketing planning, Superdrug organization will develop the plan that will encourage the brand image and support to create the awareness in the target market (Arbelaez.et.al.2011).
3.3 Techniques for new product development
Superdrug is dealing in beauty products and services in UK where demand of such products is increasing. Now, it is important for organization to develop the new products and services that would be beneficial for sustaining place in market. For new product development, the top management of organization could use the following techniques:
Collection of feedback
In the current scenario, consideration of customer opinion is critical for organization like Superdrug which is offering beauty products. By collecting and analyzing the feedback of customer the management will able to take the decision for developing the new products that have the quality and elements that deseeded by the target and potential customer. Moreover, collection and review of feedback will help to craft improvement in CRM activities (Czinkota and Ronkainen, 2012).
For new product development, this strategy would be useful in which organization will conduct the session for employees and marketing team to generate the new idea for improving quality, labelling and presentation of products into new market. Brainstorming will help to generate the new idea for developing the product. This technique will not require the funds and other market analysis tools and elements which could influence the financial process of organization (Goel.et.al.2010).
3.4 Recommendations for pricing policy, distribution and communication mix
Marketing of the products is very necessary for the business to gain the competitive advantage and also assists the business to maintain the trust of the employees on the organization. The communication mix means specified method for advertising the organization’s products to the selected audience and the clients. Public relation is the most important task for the organization help the business to retain the clients for the longer period. To maintain the customer relation organization has organized various events, charity functions and various other promotion activities. Direct marketing is also the part of it in which management directly sell the products to the clients and earn money profits (Spawton, 2013). It can be said that pricing policy affects the organization in various way like it affects the buyer’ budget, low sales, low profits etc. Distribution channel of the products may help the business in many way like effective distribution may reduce the cost of the products thus buyer can easily buy the medicines from the Superdrug (McDonald, and Wilson, 2011). Public relation is the most important task that helps the business to increase the customer base for the organization and generate more revenue by selling demanded drugs. For example Superdrug sell the quality skincare products to the customers that give some benefits to them thus they purchase the products again and again. It assists the management to develop the effective relation with the customers.
3.5 Factors affecting the effective implementation of the marketing plan
Various factors affects the implementation of the marketing plan is as follows:
Market potential:The market potential of the organization is very good it serves various clients in Ireland and United Kingdom. The organization has more than 900 stores across the UK and Ireland that are more than enough to fulfil the demand of the clients. The organization provides different kind of medicines to the clients that help the patients to recover from the diseases.
Demographic factors:The demographic factors may affect the organization because discover the medicines mostly for the female patients that may be barrier for the organization to target the male clients in the market (Hoyer.et.al.2010). The specified products of the Superdrug may be hurdle for the business to classify the clients.
Competition: Another factor that influences the process of the marketing plan is competition in the market. Various other organizations discover the same product in the market and sell the low rates thus it may affect the marketing plan.
Target market:Sometimes target market of the different organization is same that may affect the business to grow. This is the foremost step of the organization that identifies the key buyers in the market and sells the product as per their desire.
Economy: While deciding the plan organization must identify the economic factors that may affects the business in various way like purchasing power of the customers, price of the new product, customer segmentation etc. This kind of factors should be assessed by the marketing manager of Superdrug in very beginning.
4.1 Ethical issues influence marketing planning
The marketing essentials is affected by various issues by which manager are not able to identify the problems within the Superdrug. Following are the issues that affect the marketing planning in various ways:
Moral issues in marketing: The promotion of the product and services affects the business marketing plan like promotion of models, values or any other thing that affects the promotion. Sometimes various social groups may be affected with the promotion of any unethical advertisement and sue the organization for this kind of unethical promotional campaigns. This is one of the biggest issues for the organization (Murphy, 2010). Lack of freedom to promote the product is key element that affects the whole marketing plan.
Moral issue with human resource: Superdrug always keeps the in mind that the moral value of any employee gets not affected with the promotion campaign. This may be the reason for the failure of the marketing plan. The age partiality, religion, race, weight etc all are the ethical issues that are considered while designing the marketing plan for the organization. The hr manager of the organization always tries to eradicate the unethical issues from the organization that may give sound marketing plan for the business (Huang, and Sarigöllü, 2014).
4.2 Organization respond to ethical issues
Superdrug always tries to follow the right things and try to keep the environment clean and encourage the employees to protect the workplace clean and safe. Organization tries to manufacture that kind of medicines that does not pollute the environment and human being as well. Organization has the liability to meet the expectation of the clients and provide them right products as per their problem. For example a women wants skin care product and marketing employee serve the skin care products to her that is the ethical practices (Slater.et.al.2010). Sometimes government laws may bind the organization to manufacture the medicines because that kind of medicines may affect the man kind so it is an ethical issue that affects the organization. To respond the ethical issue management may follow the rules and regulation of the government. As a manager I will consider the all the ethical issues that are related with the organization and remove them from the marketing activities. The price of the products must not be low that may raise the competition in the market. The organization will do the bio degradable products that may not pollute the environment. The marketing policy of the organization also plays vital role and management will plan to decrease the risks and hazards related with it.
4.3 Consumer ethics and the effect it has on marketing planning
Customer ethics plays vital role in the growth of the organization it may affect the marketing plan of the organization. The delivery of the goods and services may affect the business and also affects the mentality of the buyer. The customer should not be cheated and get the product which he demand for if he did not get the appropriate good than it may loss for the business. For example client demand for the health care product and management deliver the wrong product that may affect the goodwill of the organization (Shani and Chalasani, 2013). To raise the good will of the organization management must follows the ethical practices and always fulfil the demand of the clients. The trust of the buyer must not be broken management must give preference to the need of the customers. If organization wants to keep the long term relationship with the customers than correct products with suitable prices must be delivered to the customers.
The report has been review the changing perspective of the marketing planning and evaluated the organizational capabilities to plan the future marketing activities. The report has been analyzed the factors on marketing with the help of PEST technique. The report has been discussed the main barriers in marketing planning of organization and suggested the possible strategies to overcome them. The report has been developed the plan for the marketing of new product and determined the pricing, promotion and place along with importance of marketing. The techniques have been identified to develop the product market. Factors affecting the marketing have been discussed. The report has been explained the influence of ethical issues on marketing and how organization can overcome the ethical issues. The report has been presented the example of customer ethical issues in an organization.
Books and Journals
Anderson, J. C., Narus, J. A. and Narayandas, D. 2012. Business market management: Understanding, creating, targeting and delivering value. Cage publication.
Arbelaez, P., Maire, M., Fowlkes, C. and Malik, J. 2011. Contour detection and hierarchical image segmentation. Pattern Analysis and Machine Intelligence, IEEE Transactions on. 33(5). Pp. 898-916.
Barreto, I., 2010. Dynamic capabilities: A review of past research and an agenda for the future. Journal of management, 36(1), pp.256-280.
Chesbrough, H., 2010. Business model innovation: opportunities and barriers. Long range planning, 43(2), pp.354-363.
Czinkota, M. and Ronkainen, I., 2012. International marketing. Cengage Learning.
Day, G.S., 2011. Closing the marketing capabilities gap. Journal of marketing, 75(4), pp.183-195.
Goel, S., Hofman, J. M., Lahaie, S., Pennock, D. M. and Watts, D. J. 2010. Predicting consumer behavior with Web search. Proceedings of the National academy of sciences. 107(41). Pp.17486-17490.
Hoyer, W.D., Chandy, R., Dorotic, M., Krafft, M. and Singh, S.S., 2010. Consumer cocreation in new product development. Journal of Service Research, 13(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.