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Unit 2 Marketing Principles Targeting Strategy Assignment
Diploma in Business (Marketing)
Unit Number and Title
Unit 2 Marketing Principles Targeting Strategy Assignment
Marketing is the sum total of activities which helps in the development, selling and promotion of goods and services of the company so that the business can grow for the longer term and the business can succeed.
This Unit 2 Marketing Principles Targeting Strategy Assignment deals with the discussion of important principles of marketing with the help of different cases given.The orientations of marketing orientation and marketing processes are discussed in detail by referring to the case studies. Environment analysis is done on the micro and macro levels. This Marketing Principles Assignment focuses on the elements of marketing mix and different strategies of the company, brand or product are discussed.
1.1 Explain the various elements of the marketing process.
Marketing process includes the various activities which are advertising, selling and the distributing activity. To provide the better services and the improved products to the customers it is very important to understand the needs and demands of the customers and provide them the maximum satisfaction. Marketing process includes four elements in it which are described below:
- Environmental scanning: environmental scanning is done by the organization to understand and examine the customer demands and the needs. This is done by the organization to gain the maximum customer satisfaction by the products and services offered.
- Segmentation: After environmental scanning the organization segments the market. In this the groups of people is divided as per the similar features and the characteristics. Segmentation of people is done on the basis of demography, psychographic, geography and the behaviouristic.
- Targeting: The next step in the marketing process is the targeting and the segmented markets are targeted according to the customers’ needs and in the manner to gain the maximum profit to the organization and the maximum customer satisfaction of the customers.
- Positioning: At last the product position strategy is formed and the strategy is adopted as per the customer satisfaction as well as needs and wants ad the market position and policies of the company( Khan, 2014).
1.2 Evaluate the benefits and costs of a marketing orientation for a selected organization.
Market orientation is the strategy of the organization to serve the customers according to the market needs and the wants and not as per the organization. The market orientation is to provide the customers maximum satisfaction. Market orientation involves the activities of product, 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 Renault for maintaining the quality products to offer are sales and marketing costs because of the maximum promotion the company bears such costs. The Renault also provides the order online services which increase the cost of the company to maintain the brand value and the development. The company also gets the benefits of market orientation if it launches the new product or the car then it bears the less risk chances as there is an effective marketing research originated by the companies. The benefit of market orientation is that the company provides the products according to the market demand which enhances the customer satisfaction (Dong, et.al, 2016).
2.1 Show macro and micro environmental factors which influence marketing decisions.
The chosen industry is the automobile industry in the given task in which the organization or the company is taken Renault. The company Renault is impacted by the macro and the micro environmental factors which 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 took the marketing strategy of attracting the customers in the festive occasion like Christmas and New Year to gain the maximum revenue and profit.
The micro factors which affected the Renault and its decisions are the product, consumers and the supply management of the company. The decisions of Renault are affected by the product because of the less innovative products and the more comfortable products of the competitors are already created the position in the market. The other factor which affected the marketing decisions and operations of the company are consumers because of the new demands and wants of the consumers and less satisfaction among the customers the marketing decisions and the operation of the company are affected. The company needs to provide the customer satisfaction to its customers by providing the products according to the research. And the supply management of the company needs to improve (MELGAR, et.al. 2012).
2.2 Propose segmentation criteria to be used for the products in different markets.
The best segmentation strategy for any organization is to provide the products and the services to the customers according to the demands and the age and buying price of the customers. The purpose of the segmentation is to satisfy the needs and the demands of the customers and gain the brand value and maximum profit to the company.
The company Renault should use the different segmentation criteria in which the company can grow and get the benefit of the attracting maximum revenue with the maximum customer satisfaction. Now the company wants to launch its new products or cars to the market the company should take into consideration the price of the cars and buyers who can purchase the car on that price and segment the market accordingly in addition the company should consider the demands and the wants of the customer in respect with the cars and its features and should produce and offer the cars accordingly. 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).
2.3 Chose a targeting strategy for a selected product or service.
The targeting is the process of finding out the relevant section or the group of people willing to buy the offered product and service. The targeting strategy of the company for the new product of the company Renault is to be executed on the basis of the company’s products price and the company product’s relevant buyers. The targeting strategy of the company should consider the income of the buyer, the age group of the buyer, the lifestyle of the customers. The cars produced by the company are generally having the luxury features which affect the pricing of the company’s products and affect the decisions of targeting the market. The cars can be afforded by the higher income society majorly. Therefore, the company should target the customers having higher income and uses luxury products. The Renault should create the maximum attractive features to the products of the company to attract more and more customers with its features and the characteristics of the company (Leisinger, et.al, 2015).
2.4 Demonstrate how buyer behaviour affects the marketing activities in different buying situations.
The buyer behaviour affects the marketing activities of the companies in different buying situation. The buying behaviour of the customers depends on the various factors such as personal factors like the age of the customer, the income, the interest, the brand loyalty and many others. Many times it is seen that the customers wish to purchase the product which is easy to handle and to which customer can connect himself. The interest of the customer depends in the connectivity of the customer. The income is the factor which the customer considers while purchasing the product. If the customer has low income the customer cannot buy the luxury products and therefore not willing to purchase it. The age also matters in the buying behaviour of the customers. The cultural and the social factors are also the factors influence the company and the buying behaviour of the company. The different cultural traditions and the customs or the values influence 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).
2.5 Propose new positioning for as selected product/services.
The positioning is the strategy to step the product or the services in the market and to create the brand value for the products and services offered. The company Renault is the now planning to launch the new cars to the market so the positioning strategy of the company should be done on the basis of the market demands and the needs. The company should consider the targeted market and should position the product according to the target market. The cars which are for family purpose and spacious should try to position the product among the families. 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 the important decision to be made and the strategy to position the products and services is helpful in maintaining the higher satisfaction of the customer and the brand value creation of the company (Dou, et. al, 2010).
The report discusses the significance of marketing mix and its elements on Royal bank of Scotland. It focuses on the strategies can be made out of these elements for providing competitive advantage to the bank in the highly competitive industry of financial banks in UK.
3.1 Explaining how products are developed to sustain competitive advantage
Sustainable competitive advantage can be referred to the unique feature of the product or service which helps it in gaining the competitive advantage in the industry. It means that the product or service is providing greater value to the customers in the given prices. It provides an edge to the company which helps it in fighting the competition for the longer periods of time. Royal Bank of Scotland has many competitors like Barclays, HSBC and more in the UK banking industry (Adam, et al., 2015).
According to Michael Porter, there are two types of competitive advantage Royal Bank of Scotland can have which are differentiation advantage and cost advantage (Kotler, et al., 2010).
- Cost advantage: It is achieved when Royal Bank of Scotland provides the same services at lower costs than its competitors to the customers. For e.g. it may provide loans at lower rates of interest than its competitors so that higher no. of customers can be attracted (Kotler, et al., 2010).
- Differentiation advantage: It means that the Royal Bank of Scotland is providing better services, unique and updated services to its customers than the services provided by the competitors. For e.g. it may provide innovative services like home banking to the customers which will give it competitive advantage over other banks (Kotler, et al., 2010).
Like this, Royal Bank of Scotland can gain competitive advantage in the industry which will provide more value to customers and the profits of the bank will also enhance.
3.2 Explaining how distribution is arranged to provide customer convenience
Distribution channel plays a very significant role in banks and it is used to provide maximum satisfaction to the customers because it depends on the distribution channels of the business that how convenient it is for the customers to use the services of the business. The distribution channels of Royal Bank of Scotland provide it a competitive advantage. It makes the services accessible for the customers which enhance the chances of growth of the company. The bank manages it distribution channels well through which the services are provided effectively to the customers (Baines, et al., 2010).
The distribution channels of RBS are the bank branches where the customers can visit and the banking officials assist them for the services. Another channel can be the direct sales force that provides services direct at home or other places where customer footfall is more. For e.g. in malls or shopping markets. Distribution channels can be referred as to the pipelines which deliver products and services to the clients which generates revenues for the business. The increased use of mobile applications and internet has increased convenience for the customers to use the services of the bank. The latest technologies like ATM’s and kiosks had made easy for the banks and the customers to use and provide services without complexions (Fill, 2011).
Digital banking by RBS
3.3 Explaining how prices are set to reflect an organisation’s objectives and market conditions
Prices of the services of banks are set following the rules and regulations of the central bank. There are various pricing criteria’s which can be used by businesses for charging from the customers for the services provided by the business. These criteria’s are given below:
- Pricing based on costs: This method of pricing uses a mark-up of profit on the costs of the products of the banksand this final price is determined then after the addition of required profits on the costs. The percentage of profit is added up in the costs (Fill, 2011).
- Penetration pricing: This method involves keeping the prices of the services lower than the competitors so that most of the customers get attracted towards the lower pried services.
- Price skimming: In this method or strategy the prices of the services is kept high by the banks which are decided according to the demand and supply laws.
- Economy pricing: In this strategy, the prices of services are kept low or minimum in the industry by banks (Bradley, 2010).
- Competitive pricing: In this strategy, the prices of the bank products and services are decided by considering the prices adopted by the competitors. Also, different macro and micro business environment elements are considered before selecting the prices so that the bank can cover its costs, fight competition and generate revenues (Bradley, 2010).
Royal Bank of Scotland uses the competitive pricing and pricing which has been decided by considering various environmental concerns of the business of bank so that the objectives of the bank can be achieved. Other factors like competitive environment and demand and supply are considered to set prices for the services (Armstrong, 2012).
3.4 Illustrating how promotional activity is integrated to achieve marketing objectives
The promotional activities are designed for the business for the objective of achieving high sales and revenues for the business. Integration of promotional activities means that different promotional strategies are used to achieve the objectives of the business.
Royal Bank of Scotland uses these following promotional strategies to achieve its business activities:
- Advertising: RBS adopts the strategy of advertising for promoting its brand and its services among the customers. It uses media promotions, advertisements in newspapers, etc. for attracting maximum no. of customers (Armstrong, 2012).
- Use of internet: RBS uses internet and social media to promote its services. It has developed smartphone application through which customers can access their accounts and avail the services which makes easy for them to access the bank services. The bank has its website where people can do banking operations and it makes the process simpler for the customers. The bank is also promoted by sending personalized emails to the customers who establishes a relationship between the bank and the customer and helps in retaining the existing customers as well as in gaining new customers (Armstrong, 2012).
- Word of mouth: It is considered as the best method to attract customers. Providing excellent customer services will spread positive word of mouth for the bank and it develops positive image among the public which will bring maximum no of customers to it. It provides facilities like high no of ATM’s and credit cards which make it easy for the customers to use the services of the bank (Armstrong, 2012).
3.5 Analysing the additional elements of the extended marketing mix
Marketing mix includes 4P’s which are Price, promotion, place and Product but extended marketing mix contains 3 more P’s which are Physical evidence, processes and People (Brooks & Simkin, 2012). The marketing mix of RBS is discussed below:
- Product: RBS provides services in form of products and it has wide range of services like it provides banking services, investment services, loans, money deposit, withdrawal services, locker facility, etc. these products are designed according to the requirements of the customers.
- Price: the prices of these products are set as per the environment of the economy. The central bank decides the rates for most of the products which is to be followed by RBS (Brooks & Simkin, 2012).
- Promotion: the products of RBS are promoted through media and print advertisements and also through positive word of mouth. The bank also provides various offers to the customers like credit cards, discounts on shopping through the cards of the bank or internet banking or offers on transactions done on ATM which attract maximum no. of customers for the bank.
Offers and Promotions by RBS
- Place: the services of RBS are provided at bank branches, ATM’s, mobiles and oninternet. Nowadays RBS also started providing banking services and other financial services at doorstep to the consumers (Brooks & Simkin, 2012).
The extended P’s are given below:
- Physical evidence: RBS comes in physical contact with the customers through its branches and it aims at providing best services to the customers. Physical evidence helps in delivering value to the customers by providing right products and services.
- Processes: the process of RBS is designed to provide best convenience to the customers. The processes are made simpler than before.
- People: The staffs of RBS arecooperative and friendly who are trained to provide best services to the customers. They are highly qualified and they are recruited and selected after proper analysis and evaluation of their knowledge and skills (Brooks & Simkin, 2012).
Power point Presentation
It can be concluded that marketing principles are important to be considered in the business organisation. Marketing is the concept which introduces the products and services of the organisation to the customers and helps the company to earn maximum revenues by making maximum sales. The assignment contains four tasks which are based on different scenarios given and different aspects of pricing, promotional activities, product and other concepts are discussed. Also discussion about the segmentation, targeting and positioning of the products is done to ensure that it helps the company and business to grow in the industry and helps in achieving sustainable competitive advantage.
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