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Diploma in Business
Unit Number and Title
Unit 2 Marketing Principles Assignment – Vodafone
This assignment is based on the marketing principles. The marketing principles are the elements of the marketing which completes the marketing process for the company. In this assignment the marketing principles and its importance is discussed. This Unit 2 Marketing Principles Assignment – Vodafone studies the various elements of the marketing process and explains the benefits and the cost of market orientation. It also shows the micro and macro environmental factors which impact the decisions of marketing in a company. This marketing principles assignment on marketing principles provides the study of segmentation and the targeting strategy. Positioning strategy of the company is discussed in the marketing principles assignment. The importance of sustained competitive advantage for the company, the distribution arrangement for customer convenience are studied in Marketing Principles Assignment and the pricing strategy according to market conditions and the organization objectives are understood in the HNC marketing principles assignment. The marketing principles and the marketing mix are discussed in this.
The aim of the marketing principles assignment or to prepare this assignment is to make understand the marketing principles and the different strategies a company should consider while performing the marketing activities in the market.
Marketing is the process includes the various activities such are advertising, selling and the distributing activity. For providing the maximum customer satisfaction the organization should consider to offering the quality products and improved services. Marketing process includes four elements in it which are described below:
Market orientation is the business or the organization technique of serving the customers according to the customers’ demands and the desires and not according to what the organization is planning to offer or produce.The market orientation aims to provide the customers maximum satisfaction by the offered products and the services. Market orientation consists of the different activities such as production, selling, marketing and the social responsibility. The customer’s behaviour is needed to analyse for understanding the needs of the customers. The various costs incurred by the Volkswagen for maintaining the quality products to offer are sales and marketing costs. For promoting the products of the company to the maximum people it is necessary for the company to maintain and improve the quality of the products. The Volkswagen also benefits the customers with the order online services which enhance the cost of the company to maintain the brand value and the development. The company also gets the advantages of market orientation but if it launches the new product or the car then the company has the advantage of bearing the low risk as there is an effective marketing research conducted by the company. The market orientation provides with the benefits or the advantage to the company in providing the products according to the market demand which enhances the customer satisfaction (Dong, et.al, 2016).
For this the chosen industry is the automobile industry in which the organization or the company is taken is Volkswagen. The micro and the macro environmental factors impact the company Volkswagen. The micro environmental factors are legal factors, social factors, economic factors, cultural factors, political factors and technological factors. The macro factors which affected the organization marketing decisions are political and the legal factors. These factors are not controllable and the political implications affected the company and its decisions more. The company is planning to implement the market strategy of attracting the customers in the festive occasion like Christmas and New Year to get the benefit of the maximum revenue and profit. The micro factors which affected the Volkswagen and its decisions are the product, consumers and the supply management of the company. Less innovation in the product and the maximum comfort and the competing products of the competitors already positioned in the market have its effect on the Volkswagen. Consumers are the other factor which affected the marketing decisions and operations of the company are consumers as emerged demands and wants of the consumers and low satisfaction among the customers. To provide the better customer satisfaction and the meeting the needs of the customers the company should provide the products and the services according to the needs and wants of the customers and the research done by the company (MELGAR, et.al. 2012).
The segmentation of the market is to be done on the basis of age and buying capacity of the customers and the organization should provide the products and the services according to the segmentation. The organization aim from segmenting the market is to deliver the desired products and services to the customers and enhance the profit of the organization. For the growth of the company and getting the maximum customer satisfaction as well as generating maximum benefit from the products and services the Volkswagen should use the different segmenting criteria.The company should segment the sectors of the market in a way to determine the prices of the products and the customers who are willing to purchase the product on that price or can afford them. As well as the company should research on the needs and the wants of the customers and design the cars according to them to attract them and provide them maximum satisfaction. To gain the maximum customer satisfaction and the maximum benefit to the company the company should adopt the segmentation strategy very carefully (Shannahan, et.al, 2016).
The targeting is the process of identifying the potential customers and the groups who are willing to buy such project which a company desires to offer. The company Volkswagen should target the customers on the basis of the price of the product and the demands of the customers. The targeting strategy of the company should consider the salary or the income of the customer, the age of the customer, and the lifestyle of the customers. The Volkswagen is the expensive brand producing the expensive cars which directly affects the company’s pricing policy and the strategy of targeting the market. The cars produced by the Volkswagen can be afforded by the customer group of having higher income. Therefore, the company should maintain the strategy of targeting the customers having higher income and uses luxury products. The company should consider to design the cars and the products of the company in a manner to attract more and more customers and attract more and more sales and should give the tough competition to the competitors (Leisinger, et.al, 2015).
The different situations of the market affect the buying decisions of the customers and as well as the companies. The customer’s buying decision is affected by the different factors such as personal factors like the age of the customer, the income, the interest, the brand loyalty and many others. The customer buying decisions and the behaviour changes with the environmental and social factors also. The income is the factor which the customer considers while purchasing the product. The low income customer does not go for purchasing the luxury product and will not have the intention to buy it. The buying decision of the product also depends on the age of the customer. The changes in the cultural and social values also affect the buying decision of the customers. The change in the fashion and trend and the personality of the customer affect the buying behaviour of the customers (Li, 2015).
The positioning is the process of keeping the product in the market with maintaining the brand image of the company as well as the products. Volkswagen is the now planning to launch the new cars to the market so the positioning strategy should be based on the market demands and the desires. The company should consider the targeted market and should position the product according to the target market. The company should produce the cars according to the family needs such as the spacious cars for the families and should keep them in the market where the families can afford the cars. The sports car of the company should be strategically positioned among the youths. The company should provide the respected feature to the customers to attract the different buyers and to win the positioning strategy of the company. The positioning strategy of the company is to be taken into consideration the demand and the needs of the customers and the company should position the products in the market where there are potential buyers for maintaining higher satisfaction among the customers and the maximum profit of the company (Dou, et. al, 2010).
The competitive advantage is the situation in which the company delivers and offers the products and the services better than the competitors’ products and at the lower prices to gain the benefit or the advantage to the company and attracting the customers to buy the products. Sustainable competitive advantage is the process of maintaining the competitive position of the company in the market. The sustainable competitive advantage helps the company to maintain the position and to compete with the competitor in the market and creates the value for the company and its products. Product development is done by sustain competitive advantage by providing the products better than the competitors’ products. Companies now make the strategy to gain the best and the first position in the market and this can be done by competing with the competitors and providing the best quality products and services than the competitors. Product development is done when the customers demand for the company’s products and to maintain the customers the company develops the product innovatively to gain to sustain competitive advantage. For e.g. the dominos and the pizza hut are the competitors and provide the pizza as the basic ingredient in food. They both focus on sustaining competitive advantage (Ch, et.al, 2011).
The distribution of the company products is very important and has the great impact on the customers and the buying willingness of the company. The company should maintain and have the strong distribution channel systems to provide the products and the services to the customers easily. The products should be made accessible to the customers for improving the sales of the company. The customer convenience is very important for the companies to maintain the brand image and the better performance of the company in the market. The companies operating in the other countries need to grab the position in the markets of the different countries of the world should improve the distribution channel of the company to reach the customers within time and in effective manner. The companies need to have the middle man to improve the distribution system of the company and to reach the customers effectively. The middlemen of the company ensure the accessibility of the customers on company’s products. For e.g. the Mercedes Company needs to achieve the markets of the different countries and the customers need to have the outlets in different parts of the world to showcase the company products, by these outlets customers can easily purchase the company’s products (Sulieman, 2013).
The organizational objectives and goals are the decided tasks and the aim which the organization has to achieve. Any organization major objective is the customer satisfaction and the profit increment in an organization. The company’s motive to achieve the organizational objective can be attained with setting the prices of the organization. The company can provide the customer satisfaction by providing the better quality products to the customers at lower prices whereas the profit maximization objective of the organization can be achieved by providing the products and services to the customers at higher profit margin. The company while setting the prices for the product should consider the market conditions as the market includes the competitors who can gain the competitive advantage by providing the same product at the lower prices. The prices of the company are set according to the market conditions and the company’s objectives. For e.g. the Mercedes company has the higher prices of the cars produced by them as they motive to provide the luxury cars to the people and also focus on the business strategy of the increased profit margin. The company changes the prices for the products according to the change in objectives of the company and the market conditions of the country. The company has the competitors according to the company’s brand. The competitors of the company are the organization who produces the same luxury cars (Cheng, et.al, 2010).
Promotion activity is the very crucial and beneficial activity to sell a product. Promotion is the process of communicating product features and characteristics which a consumer gets ready to pay for. The promotional activity for any company is the tool to increase the demand for the product and gaining profit. The promotion activity includes various elements such as advertising, publicity, sales promotion and the personal selling. These activities can be performed for increasing the promotion of the company’s products and increase the demand for the company. The promotion can be done in any form like by the use of mass media such as newspapers, magazines, television, radio, internet, hoardings. Public relation and the mouth publicity are also the effective methods to promote the brand or the company’s products. For e.g. the Samsung phones when launched have the extra promotional activities through different media and in different manner to communicate the mobile features to the public (Grimes, 2015)
By the above study and research we can conclude that the company should consider all the strategies and the marketing principles to get benefit of the company and to provide the maximum customer satisfaction to the customers. The companies should adopt the different marketing strategies to gain the customer attraction and the companies should consider the competition and the market conditions to serve the customers better and the according to their demand. The customer satisfaction is the important and the major motive for the companies and the profit maximization is the important aim of the company. To meet these objectives the company should follow the marketing principles and the strategies to attract the customers.
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