Unit 2 Marketing Essentials Solution Assignment Copy- EE limited
Diploma in Business
Unit Number and Title
Unit 2 Marketing Essentials
Marketing is the effective process that helps in aware the population about their respective product. There are various factors involved within marketing as market segmentation, marketing mix and many more. All these get discussed below in effective manner. Marketing manager plays a vital role in the marketing activities as they prepare distinct strategies in order to conduct marketing.
2a. Compare how EE Limited and another competitor of your choice apply the various elements of the extended marketing mix tthe marketing planning process to achieve business objectives.
Introduction - “EE Limited” is a mobile phone company in UK not good in marketing of its product. Company’s aims are to attract new consumers promising higher values and provide satisfaction to current consumers and make healthy relationship with them. Marketing manager is responsible for identifying, anticipating and satisfying consumer needs profitably. For this marketing manager of the company set objectives and prepare a marketing plan report for the organisation. The elements of marketing mix includes product feature, pricing, advertising, merchandising, distribution and marketing budget. These elements of mix may affects sales result of the company. Marketing plan report covers following elements of marketing mix to achieve business objectives (Blythe, 2012).“EE Limited”is a mobile phone company in UK not good in marketing of its product. Company’s aims are to attract new consumers promising higher values and provide satisfaction to current consumers and make healthy relationship with them. Marketing manager is responsible for identifying, anticipating and satisfying consumer needs profitably. For this marketing manager of the company set objectives and prepare a marketing plan report for the organisation. The elements of marketing mix includes product feature, pricing, advertising, merchandising, distribution and marketing budget. These elements of mix may affects sales result of the company. Marketing plan report covers following elements of marketing mix to achieve business objectives (Blythe, 2012).
The company is having good network coverage in UK and it also provide 4G Internet services and wireless connections to its customers. In comparison of “EE Limited, “O2 Company” along with providing good network services offers reward schemes to its consumers and maintains a healthy relationship with them. The following report show caparisons between EE Limited” and “O2 Company” in regard of marketing mix elements. And also state the suggestions for EE Limited Company which helps the company to prepare a healthy and suitable plan (Blythe, 2012).
Product – Company should always provide services as per the requirement or need of consumers. O2 Company and EE Limited both are mobile network operator and internet service providers. But EE limited launched its 4G network service in the year later than O2 Company.EE Limited fails to identify consumer needs and demand due to insufficient market research and survey records regarding the consumer need . So, due to slow marketing functions EE Limited takes more time to launch 4G network. Managers suggest that Product differentiation is a good marketing strategy. Network quality is a differentiator for network service providers. Failure in providing good network services results consumers move out. Company can differentiate on the basis of different value added services. Manager of EE Limited Company also highlighted consumer’s lifestyles. Whether a consumer use network more in completing their working task or for the purpose of leisure. Company should plan their data usage schemes as per the need of consumer. Company should improve its brand image so that there will be some easiness in acquiring new consumers (Blythe, 2012).
Pricing context - Pricing policies of O2 Company are more liberal. It provides its services to consumer at cheap rates at it can make. EE limited cannot sale its product at higher prices because O2 Company already captured the market with its product. To give a tough competition to O2 Company EE Limited company have to make more liberal terms and conditions of their pricing policy and try to offer discounts to some big clients. Company can offer different deals to its suppliers so that they can contribute in creating new customers. But, the quality of the services should be good as the consumer pay for it. Company can provide its services through creative pricing which includes service bundles and structural changes. These new structures are not easy to copy by competitors (Brassington and Pettitt, 2012).
- Services should be available near by the consumers where they can efficiently consume it when they needed. O2 Company makes more effort to provide its product to consumer in the retail market then EE limited. Consumer can avail its services from retailers also and branch offices of the company. There are limited retail stores and branch offices available in the market of EE Limited because of that consumer can not enjoy all the services of the company. Company should use channel management to reach widest possible customer base. Channel management is nothing but they are the ways or outlets to market and sell product. In the channel Market Company may sales its services through their distributors and retailers instead appointing sales executives. Managerial staff will be appointed by the company to manage the suppliers. Company should make a good supply chain management. So their will uninterrupted flow of services and finance. Between company, suppliers and consumers (Brassington and Pettitt, 2012).
- EE limited company should use integrated communication mix to the brand among the end users. Through this integrated communication mix company not only improves its brand image but also become a long surviver in the industry. Television advertisements, Print media advertisements, demonstration of services etc. Ways are available for the promotion of services and brand not only at national level but also at international level. By using these products company can appeal to the consumers for its services. O2 Company started its product promotion by advertising its services through media, taking sponsorship and also launches other supportive services so that consumer could attract more towards their services and buy their services. EE Limited used limited promotional ways so it is unable to reach its target customers. EE limited company should starts offering special prices and discount to its local customer.EE Limited should invest some money in the cross country promotions of its product to expand its market and earn higher profit. EE Limited should have started all these efforts for the promotion of their services. Company may also go for Joint ventures for promoting its services. Social media is widely used by companies currently for the promotion. Through the product promotion tools company creates faith in the customers mind (Brassington and Pettitt, 2012).
- People are one of the important marketing mix element due the sudden rise of service industry. This “People” of marketing mix show for executive staff and customer relationship personnel. O2 Company is having efficient and skilful personnel who render their services to its consumer successfully and consumers are fully satisfied with it. It organises orientation programmes for its employees for their skill development. EE limited has not enough skilful personnel. Training and personnel development programme is also required for the present staff so that company can satisfy its consumers with their services. Staff should be accountable towards their performance. Efficient human resources help to achieve marketing goal and objectives. If the retail outlets of the company are not handled with the right people, the product will not sold. So, the right people is required in current service marketing mix scenario. There should be positive attitude of executives and suppliers while they are offering services of company to the consumers (Clow & James, 2014).
Physical evidence- Physical evidence includes agreement copy, acknowledgement slip or any receipt that a consumer received from the service or goods provider. It is necessary for the company to provide the same to consumer. O2 Company executes a written agreement with its permanent and big consumers so that they can feel secured. It also provides acknowledgement slip to each customer. EE limited company is not providing physical evidence to its small consumers. The facility is limited for big and permanent customers.EE Limited should provide physical evidence to each consumer so that they can feel safe while dealing with the company. Physical evidence add safety feature with products or services and make increase consumer loyalty also (Clow & James, 2014).
- Process includes how a company delivers it product or service to customers. O2 Company delivers its services efficiently through strong network system and planting tower for good signals. EE Limited Company cannot provide good signal due to weak network system. EE Limited has to strong its signal and network system and keep in mind that a consumer should satisfied with services for which they are paying (Groucutt and Hopkins, 2015).
Productivity and Quality- This is an additional mix which should be included in the marketing mix. Productivity measures impact of advertising and promotion on sales of the company. It identifies whether a company succeeded in promoting its services or not.O2 company conduct review whether the services effectively or not. EE Limited Company does not take review for its services which make it back ward in the race of competition. Without taking a review company cannot improve its productivity and quality. If company provide quality services to its consumers and if consumer is satisfied than it can pay high for the service. So, good quality and productivity helps to achieve the goal of making new consumer and increase the consumer loyalty (Hollensen, 2012).
Earlier four Ps (Product, Price, Place and Promotion) are used to make marketing strategy later on the three Ps (People, Physical evidence, Process) added in it and helps in considering on consumer satisfaction. These 7 Ps of marketing mix have logics behind them and helps to build a sound marketing environment. Without these 7 Ps of marketing company cannot prepare marketing strategies. The whole planning is depending on it. They also help in analysis implementation and control functions in a marketing plan. It helps marketers in increasing their ability to adapt changes and updates in the commercial environment (Hollensen, 2012).
This marketing mix is the simple way for making the business strategy. The Seven Ps are helping in evaluate and re-evaluate the business activity. One should keep in mind that for getting success put the right person in right position. This marketing mix helps to understand consumer, create consumer values and build strong relationships with them. This marketing mix helps marketing manager to create a good market plan (Jobber and Chadwick, 2012).
2b. Produce a marketing plan to meet EE’s marketing goals and objectives. The extended elements of the marketing mix should be addressed in your marketing plan.
Marketing Planning includes marketing objectives, strategies and activities which will be followed by a company within set time frame. Marketing planning is the process of helps to identify , anticipate and satisfy the consumer demands in such a way to make a profit. Marketing research and market mix are the two elements of a marketing planning. Market planning is the connector between the enterprise and its market. Marketing planning is the systematic way to formulate marketing strategies. Marketing planning relates with the whole organisation or with the Strategic business units (Klerk, et. al., 2012).
Marketing planning helps in avoiding uncertainties of future, helps in managing by the objectives, helps in achieving organisational objectives formulated by top level management. It helps in controlling and evaluation. Marketing planning helps in coordination and communication among the departments. Marketing manager of EE Limited company draw following marketing plan for improving marketing functions of the company (Klerk, et. al., 2012).
- EE Limited provides internet services in United Kingdom. It creates significant interest in the telecom sector by providing voice call services and Broadband and Wi-Fi connections. Due to poor cross functional communication there is a lack of marketing orientation throughout the organisation. So, the manager frames a marketing plan with objectives to create new customers and keep current customers enhance their money value (Korhan, et. al., 2013).
Company Overview- EE Limited Company serves its customers with mobile services, Broadband and TV. Company also continue to deliver the Emergency Service Networks. Now a day’s company faces issues related with signal across both its 3G and 4G networks. Which is the big and important problem of the company. So, the company could not attract the new customers and old clients change their plans (Korhan, et. al., 2013).
Situation Analysis- Situation analysis includes internal and external analysis and SWOT analysis required for marketing planning.
Internal Analysis-Marketing management department cannot deal with all customer needs alone. So it is important to analyse internal environment of the company. This analysis includes all those factors which are close to the company and have impact on the company’s value creation and customer service. Internal Analysis includes financial resources, suppliers, goals and objectives and management (Kotler and Armstrong, 2013).
- Financial Analysis-Company should have good relationships with its banks, investment houses, and stockholders because these are the main sources of finance for the company. Company should also consider that weather a company have sufficient financial resources or not to meet the requirement of its business. How a company locate its financial sources in different functional areas (Kotler and Armstrong, 2013).
- Suppliers and Intermediaries-Company analyse that whether it has sufficient suppliers of its services or not. Company should maintain supplier relation management system to manage all the suppliers, because suppliers are the first link in the supply chain of the company. The payment policy to the suppliers should also consider (Kotler and Armstrong, 2013).
- Goals & Objectives- Company should observe that it is working as per its goal and objectives. Company should run its business with its set mission of profitability and consumer satisfaction.
- Management-In this Company assures that it has a strong management team, technical staff and assistants, who carry management of the whole company successfully (Mcdonald and Wilson, 2011).
External Analysis includes current economy, culture, technology, demand, legal consideration and competition.
- Economic environment-In economy Analysis Company should see prevailing interest rates, money exchange rates in the market. Recession and inflation is also affecting the purchasing power of the consumer. Various types of taxes and balance between demand and supply of products or services should be considered (Mcdonald and Wilson, 2011).
- Culture- Culture is also having an effect on the company’s business. If more population is working then it is a good sign for the company because company can increase its business by creating new consumers. Prevailing culture helps company to frame plans as per the requirement of customers (Mcdonald and Wilson, 2011).
- Technology analysis- Company’s business depended on the technology fully; a slighter change in technology can affect the services of the company. So, Technology analysis helps company to upgrade its technology and work with latest one. So that it can provide strong network services to its customers.
- Demand –Demand and supply are the changing factors of economy. Company should be attentive towards these changing factors. Company should always be available to consumers. Consumer’s loyalty increases when they observe that company fulfils their demand in every condition. Marketing function directly related with demand of the services. Demand includes type of the services demanded by the consumers. They can demand for broadband connections or Wi-Fi networks and for other services which they can ask for as per their requirement (Mootee, 2013).
- Legal-Company should ensure that operates in prevailing legal environment and complete all the legal compliances which are applicable on it regarding its business. Legal environment covers issues like corporate affairs, consumer protection, employee protection, regulation of services, prices and distribution etc.
- Competitors- There is no monopoly in the business of network service provider, so company have to face huge competition from its competitors. Company should analyse the prices and quality of service provided by competitors and what kind of strategies are adopted by them for capturing consumer market (Mootee, 2013).
Strength- strong Management team, sufficient financial recourses, good and strong relations with suppliers, clarity in goals and objectives etc.
Weakness- lack of trained employees, bad cross functional communication etc.
- opportunities to enter into joint ventures with other service providers to expand service area.
- tough competition from competitors and rivalry firms.
- Before setting the objectives Company reviews its working identifying current strength and weaknesses. A management plan should establish those objectives which can be achieved easily by the company in the present economic environment. Objectives of marketing plan -
Aims to develop new markets, establish a strong supplier relationship, choose effective advertisement methods for attracting targeted customers, enhance web presence and expand social networking, efforts to increase customer loyalty towards business company (Worsham, 2010).
- for the effective marketing management, plans should be prepared for different levels of the organisation. For top level plans are prepared for growth, for middle level planning is to be done for finding opportunities for future investments. Once the opportunities are identified planning started for operational level. In the case of EE Limited company, Manager of the company suggest that company should go for the joint ventures and takeovers of small & weak competitors for expansion of market. Establish new relationship with suppliers, offer them discount or commission so that they make more efforts for finding new markets for company services.. Try more channels for advertisements. Advertisements through social networking sites are the cheapest way. Offers liberal terms and conditions to the permanent customers and also give them discount in their plans (Worsham, 2010).
After preparing Strategies Company will go for segmentation, targeting and positioning of its services.
- Segmentation – The initial stage of segmentation is to identify the market boundaries for the services of the company. For completion of segmentation company can develop a broad business plan which outlined the whole business of the company to identify the customers need so that company can beat its competitors in the market. Divide suppliers on the basis of region such as east, west, south, north and central or on the basis of population density such as urban or semi urban. Segmentation includes income wise segments like prepaid or post-paid markets. Company can also make segments on the basis of customer loyalty (Zeller, 2011).
- Targeting- After dividing markets into segments, company should find out its targeted customers. Like there are consumers who may have heavy requirement of internet services .While targeting a particular segment company should find opportunities so that company can use its resources fully. There are many options available for targeting areas for EE Limited Company like providing free audio calls facilities on post paid connections to professionals, cheapest plan of internet connections to entrepreneurs and data sharing schemes etc.
- Positioning- Positioning means offering services to consumers impress them with an aim of maximising profit of the company. Positioning become successful when it creates customer focused value. Positioning requires communicating similarities and differentiation between brands. Positioning may includes head to head positioning and differentiation positioning (Zeller, 2011).
- Tactics and Actions:- Tactics are used to implement the strategic plan prepared at the top level by the management team. Tactics are prepared at the operational level of the organisation. So that company can act as per the strategy. Strategic plans work as the guidelines for tactics.EE limited company should first provide better services to its existing customers and create values and then offers its services to the new targeted customers. For creating new customers company may go for campaign as like its competitor O2 Company. Company can go for online advertisement through sending e-mails to their expected target customers (Zeller, 2011).
- Budget- A marketing budget is an estimate of projected cost company’s services or product. Budgeting is a difficult process in spite this company should prepare budgets for its each and every department. Budgets can be prepared by estimating expenditures or base the previous year’s expenditures. Budget helps in preparing plans with in the boundary of financial and human resources. Manager of the company are suggested to determining return on income for appropriate total budget for the marketing efforts. Failure in proper costing and budgeting market plans could lead many problems. Marketing budget ensures that all the plans are realistically coated. Internal analysis, external analysis and SWOT analysis helps marketing manager in more informed calculation. A marketing budget should take into account all the cost related with marketing communications, salaries of manager and staff, cost of office expenses etc (Zeller, 2011).
- Control-After implementing plan into actions control on the actions started. Control includes several processes that monitor performance on a continuous, periodic and event basis. Control on the performances may be made in three ways: First is Control proactively which includes monitoring of problems in a way that provide their timely prevention before arising any problems or issue. Second is behavioural control it involves the direct evaluation of managerial and employee decision making. Third is outcome control means control as per the outcomes regarding sales of services to the customers. Budgets are also a helping hand for controlling the activities. The main objective of the control is to ensure that all the operations are as per the planning. Marketing manager can use market share analysis, sales analysis, quality controls, budgets, marketing research, marketing information system in controlling marketing activities (Worsham, 2010).
- Marketing audit- EE Limited Company suggests that after implementing whole marketing plan company should go for a marketing audit. Carrying out marketing audit provide the opportunity to review and appraise all marketing activity of the company. It also helps in assessing past and present performances of the business and also provide basis for evaluating possible future actions. In this changing business environment the marketing audit can be used as reference tool helps in providing information regarding external environment updates and internal business experiences (Worsham, 2010).
- Conclusion of marketing plan- A marketing plan should form in such a way which is adaptable to changing market conditions. Manager prepares the plan by allocating market resources in best economical way. Marketing managers suggest that company should constantly review and evaluate the outcomes of actions taken by the company. Thus the review and evaluation of current marketing plan helps to develop future plans and strategies to improve operations. Keeping in mind the aim and objective of marketing plan the company should make more efforts in creating customer values and market expansion. Promotion of services is the best way to expand market. Promotion can be made through online advertisement, taking sponsorships in different events, offers discount to permanent and old customers as per suggested by the marketing manager. A good marketing plan is required for the company because currently consumer is complicated, emotional and confused due to various options available to him in the market. So, it is necessary for the company to prepare those plan and policies which increase interest of the consumers towards company’s services. Product/Service differentiation is the best and easy way to attract consumers (Worsham, 2010).
In the end it is concluded that marketing plan is effectively prepared in order to conduct the marketing activities. Marketing plans helps in getting the information related to the market trend and other factors that helps in making effective strategies in order to capture the market. For effective marketing plan adequate analysis need to be made over the distinct factors such as SWOT analysis as it helps in analysing the organisation internally as well as externally. Segmentation, targeting and positioning is the effective procedure for the purpose of effective marketing plan.
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