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Unit 2 Marketing Principles and Decision Influencing Assignment
Diploma in Business
Unit Number and Title
Unit 2 Marketing Principles and Decision Influencing Assignment
Charted Institute of marketing has defined the marketing as the process of management to find, meet and serve the customer satisfaction. Kotler also defined the marketing as the process to deliver the requirements and demands to target customers so that values and benefits can be created for both. The report will discuss the various elements of marketing process along with benefits and cost associated with marketing orientation. The report will also discuss various macro and micro factors affecting the marketing activities. The report will discuss the segmentation process and buyer’s behaviour in marketing. Strategies will be planned to position a product into market. Later report will determine the role of pricing, product, distribution and other marketing mix in organization. Report will plan the marketing mix to cover the satisfaction of two different segments. The report will also present the difference among marketing activities with businesses rather than to customers. Also the differences will be shown between domestic and international marketing approaches.
1.1 Various elements of marketing process
Coca Cola organization uses the following steps in marketing of products and services.
- Situational Analysis: The organization can analyze the internal and external environment of the business so that customers’ demands and needs can be addressed with right services to them. The organization uses SWOT analysis and porter force model to fill the gap between market demands and supply of products. The activities of organizations are aligned more near to customers’ needs.
- Developing marketing strategies: The determination of scopes is required to plan the successful marketing strategies. Organization uses the research information to develop the marketing planning on segmentation, positioning and targeting. Proper analysis of marketing trends and demands helps Coca Cola to develop the market winner strategies (Czinkota and Ronkainen, 2013).
- Designing marketing tactics: Marketing tactics means to control the pricing, production, promotion and distribution of products and services according to marketing situations. Adaptabledecision making helps to conquer the market and to serve the customers more effectively.
- Implementation and Control: The organization needs to control and manage the business operations according to the changes in market. Also the implementation of strategies should be monitored closely to meet the organizational objectives.
1.2 Benefits and costs of a marketing orientation
Marketing orientation defines the prospective and values of organization towards the operations to serve the customers. The orientation helps Coca Cola to conquer the market and to build the strong brand image. The organization has benefits in term of innovative idea because the orientation helps to understand the operations and customers demands accurately (Alrubaiee and Al-Nazer, 2010). The marketing orientation of the organization helps to decision the products and services according to market driven factors and demands. The organization has more control on the trends and requirements in market for the product. Al though Coca Cola needs to invest a significant amount in marketing orientation. The organization needs investment on powerful marketing intelligence for research purpose. Also technical infrastructure needs to be robust to collect, share and analyze the customer data. Cost is required to improve the existing products and to train the employees to present the business for effectively. Coca Cola has own training programs and infrastructure along with skilled employees for marketing orientation. Cost is also required to improve the equipments and services to enhance the product quality (Kumar.et.al.2011).
2.1 Macro and micro environmental factors influencing marketing decisions
Micro factors are tightly related to the process, strategies and outcomes in comparison of macro factors to make market benefits. Coca Cola organization has impact of following micro and macro factors on marketing decisions.
- Socio-cultural: Coca Cola has variety of products and needs to promote the business with social and cultural values of hosting country. The type and integrant of products should be acceptable in social beliefs and patterns.
- Economic: the strength of economy in county affects the pricing and marketing of products. Organization needs to determine the economic stability of hosting country to reach a market decision (Douglas and Samuel Craig, 2011).
- Technological: changes in technology have reshaped the marketing approach of Coca Cola to reach the customers. Organization must needs to be aware with technology the customers have to interact with organization.
- Employees: the skills and capabilities of employees should be determined to decide the marketing plan. The internal strength and fulfillment of resources in Coca Cola make it easy to accomplish the market demands.
- Customers: The target customers and their demands play a vital role in marketing decisions. Organization needs to consider the customer’s interest and demands to implement the product effectively.
- Competitors: Coca Cola has intelligence staff to analyze the strategies of competitors and to align the own approach to meet the market objectives. The pricing and production is set according to competition in market (Gaston-Breton and Martín Martín, 2011).
2.2 Segmentation criteria for different market
Segmentation means to divide the market scopes into manageable sections so that strategies and decisions can be made more effectively to accomplish the business objectives. The market of Coca Cola can be segmented into following four segments:
- Geographical: The organization needs to understand the geographical status of customers as the cold drinks and beverages are easier to sale in warm geographical location in comparison of cold places. Geographical characteristics of customers determine their engagement in product usage.
- Demographic: The characteristics of customers like age, gender and income sources define their purchases. Coca Cola needs to segment the products according to more than one demographic factor to reach the most of market. For instance, youngsters have choice of soft beverages whereas children can be serve with fruit flavored food and drinks.
- Psychographic: The psychology of the customers for products and their prices needs to be determined to segment the marketing of product (Wedel and Kamakura, 2012). Customers’ expectations and demands should be covered in segmentation so that product can meet objectives of organizations.
- Behavioral: The product can be promoted with the behavior of customers. For instance, Coca Cola use the behavioral factors of youngsters and business parties to reach the market objectives. The individual’s prospective towards services matters in product promotion.
2.3 Targeting strategy for a selected product/service
Coca Cola organization needs to analyze the customer data for the knowledge of total consumption and effectively of approaches to reach them so that these analytical results can be used to design targeting strategy. Organization can segment the market according to demographic factors as customer’s income and interest are first to divert the decisions towards products. The product must need to be according to customer expectation and demands. Coca Cola can introduce the products in market in most acceptable season with comparatively low prices so that maximum benefits can be achieved. Innovation is necessary to promote and sale the products. New and innovative products can be designed to accomplish the market benefits. The customers can be attracted with high quality support and supply chain in business (Cooper and Kleinschmidt, 2011). Target strategies can be prepared to deliver the quality products within price constraints to customers.
2.4 Buyer behaviour affects marketing activities in different buying situations
The individual’s perception and life style matter in marketing activities of organization. The customers’ personal values and beliefs along with motivation points, learning through practices and attitude is important to know the behavior towards product. The buying situation depends on the facts like consumption of products, income of customers, availability in market and environmental changes. The social, cultural, psychological and demographic characteristics of the customers determine the buying behavior with a product. Organization must need to address the trends and life patterns of customers to sale the products effectively. The buying situations can be based on the motivational presentation before the customers. The customers of Coca Cola can be attracted towards the products through the learning like promises of less sugar, natural flavor and high energy etc (Hsin Chang and Wang, 2011).
2.5 New positioning for a selected product/service
To promote the product and services, organization needs to position the business. Positioning means to prepare the market strategies and approaches so that objectives can be accomplished effectively. The positioning is tightly related to marketing principles so that organization needs to use the proper strategies with marketing mix to meet the benefits. The marketing mix like production cycle, pricing of products, promotion and place to distribute the product must be customized according to changes in market. The rapid growth and change in business approaches should be analyzed and used in Coca Cola to position the new products. Organization can use the legal promotional activities; offer based pricing and effective distribution channels to position the new product into market. The organization can use attractive price, innovative features and offers to position the new product in market along with fulfillment of customer demands and requirements (Hoyer.et.al.2015).
3.1 How products are developed to sustain competitive advantage
In order to develop the product in market, it is necessary to generate the idea on the actual need of the customer and their demands. Once the idea is generated, the banking sector can screen the idea for its requirements and sustainability information. Bank like Barclay may use the idea that customers are facing issue to transfer the money with cards. In such cases, the management can develop the concept and test it with higher authorities for sustainable growth. The capabilities of thesinesss and market opportunities are identified to develop the product or service. Proper marketing strategies are made to promote the development. The developed product and services are analyzed and tested again to accomplish the requirement of business through the introduction in market. Once the services are developed to help the customers to transfer the money through the swipe cards, bank can commercialise the services to reach the target customers (Porter, 2011). Barclay needs to understand the business impacts and profits with new products before to make it commercial in market.
3.2 How distribution is arranged to meet customer convenience
Barclay banks need to communicate with customer and to send them their secret documents like pass-code for ATM, transactional details, authentication codes for online services etc. In order to deliver the PIN code to customers for their new ATM card, organization can move from traditional to modern approach. Organization can use the online services featuring the customers to handle their ATM cards and PIN numbers so that they can easily reissue the pin, block the cards and request for new card. In this manner, there is no need to send envelop of PIN numbers to customer’s postal addresses. Organization can enhance the distribution work with the help of online services. The customer convenience can be addressed with easy to reach services between bank and customers. The customer can use online services to manage their transactions without any additional cost and delay to process. In this manner, the distribution of cards and related information can be simplified to enhance the customer satisfaction. It is also effective to attract the new customers in Barclay (El Saghier and Nathan, 2013). The security and loyalty with Barclay can be enhanced with services in customer relations.
3.3 How prices are set to reflect an organization’s objectives and market conditions
The pricing of product and services are set according to organizational objectives and market conditions. The organization can use cost, considerations, demands and competition on specific products to determine the price. The organization can set the price without discount to illustrate the premium nature of products and brand. At other side, the price may be variable to attract the customers in demand driven market conditions. Barclay may offer the low pricing on services under the competitive market. The customers’ demands can be aligned with consideration of organization to sustain and grow. The services of cards and online functions can be chosen according to prices so that premium accounts can be managed differently among customers. Also the use of cards and services can be limited in comparison of pricing to fulfil the requirements of every customer (Pullman and Dillard, 2010). The prices reflect the organizational approach which may be for market benefits or to create the space for the sustainability in market. The poor and strong market demands and competition determines the price of services in banks. Barclay has premium prices and constant rates on services for customer convenience and business brand image.
3.4 How promotional activity is integrated
Barclay uses the advertisement and promotion activities to sustain in competitive market and to reach the target customers. The communication process is used as part of promotional activity in Barclay as it is effective to satisfy the customers and to direct them towards more benefits. The organization also uses the efficient online banking services on zero cost to make the customers loyal for business. The organization promotes the business though advertising in local region and posting on internet for the offers and benefits with Barclay. The public relations are managed in effective manner as organization play contribution in environmental awareness and development of local community. The organization use online media and websites to promote the business to global customers. The services and benefits are offered through the direct sales and interaction with customers to meet the demands (Shimp and Andrews, 2012). Barclay use customer requirements and demands as the point of selling services. These kinds of pull and push strategies are used to promote the business and to engage the customers for market benefits. Direct marketing is also used to meet the customer convenience and requirements in services. The promotions activities are integrated in business operations and practices also.
3.5 Additional elements of the extended marketing mix
The Barclay needs to utilize the additional elements of marketing mix to promote the business and to achieve high customer satisfaction. Following are three additional marketing mix elements to be used in Barclay:
- People: organization needs to serve the customers for the desired services and products. The customers and employees are part of marketing mix. The employees should be trained and developed according to marketing approaches. The people associated with business should be analyzed for skills and experience to market the specific product (Khan, 2014).
- Process: The organization needs to focus on the quality of the internal and external processes to achieve the benefits. The process of organization should be objective oriented and accurate to serve the business effectively. The products should be delivered within time along with expected quality.
- Physical evidence: In order to create the business branding and reputation, Barclay needs to set up the banks at well known and reachable location so that customer satisfaction can be achieved. Physical location helps to achieve the customers’ trust and loyalty. Also the distribution of products and services has dependency on physical locations (Goi, 2015).
4.1 Plan marketing mixes for two different segments in consumer markets
Majorly there are two kinds of customers in Vodafone UK, one those prefer the use of tariff plans for calling and other needs the benefits of low cost internet services. The organization can plan the marketing mix to address the both segments effectively:
- Product: Organization can use create the product and packets according to their usage. The organization can offer the low call rate basis recharge and high benefit of internet packets with regular recharges. It will help to direct the tariff users into internet services and vice versa. The product should be creative and enrich in services to customers.
- Price: Vodafone UK can set the comparatively low and attractive prices on the products to win the market. The internet recharges can be made cost effective to transform the users into loyal customers. The organization can offer the discounts to new customers in both segments. Also the tariff plans can be made economic to cover the market (McDonald.et.al.2011).
- Promotion: The products can be promoted on online sites and through the personal messaging to customers. The promotion can include the activities free call time to first time users, extra benefits to regular users and combo pack discounts to promote the products. The customer needs can be addressed in promotion activities of products.
4.2 Differences in marketing products and services to businesses rather than consumers
Vodafone offers the services and products to other businesses to accomplish their business needs. The organization uses the low cost and high performance services with businesses to meet their expectations. The packets of internet usages and call rates are prepared according to business demands (Lovelock, 2011). In order to achieve the trust of other businesses, organization may use the best services and discounts to them so that sustainable marketing can be visualize. The marketing approach may be direct communication, promotional or demo activities in organizations. Recently, Vodafone has introduced the high speed internet with 4G services for individual and business users. The organization has used the different marketing methods to reach them. Demo services are used to experience the product of Vodafone. The plans are set to number of users as more the users more the benefits are delivered to business. The organization offered the services through dedicated dongles and routers for business to meet their convenience and expectations. The prices, speed and durability are collaborated in effective manner to conquer the market benefits (Grönroos, 2011).
4.3 Domestic versus international marketing
The domestic marketing is more close to the use of cultural values in comparison of international marketing. Vodafone UK needs to use the different cultures and standards according to hosting country to achieve the adaption of business. The organization needs to follow EU Act to business in Europe. There is low risk and benefits with domestic marketing due to limitation of customers and scopes but international marketing helps are termed as open end for risk and benefits. The organization can attract the customers from global market to make the benefits whereas in domestic market, there are less issue of legal frameworks and policies. Organization can manage the business effectively in domestic market in term of cultural values and business risks (Terpstra.et.al.2012).
The report has been discussed the marketing process elements and evaluated cost and benefits of marketing orientation. The report has been identify the various macro and micro factors on marketing and proposed the segmentation criteria. It has been discussed how the buyers behavior affect the marketing strategies. Addition to it, all marketing mix elements are discussed for marketing activities in organization. The marketing mix elements has been planned to meet the Vodafone UK customer segments. The report has concluded the difference between marketing of products and services to businesses rather than to customers. The report has been shown the differences between domestic and international marketing procedures.
Books and Journals
Alrubaiee, L. and Al-Nazer, N., 2010. Investigate the impact of relationship marketing orientation on customer loyalty: The customer's perspective. International Journal of Marketing Studies, 2(1), p.155.
Cooper, R.G. and Kleinschmidt, E.J., 2011. New products: The key factors in success. Marketing Classics Press.
Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning.
Douglas, S.P. and Samuel Craig, C., 2011. The role of context in assessing international marketing opportunities. International Marketing Review, 28(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 Review, 28(3), pp.267-290.