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Unit 4 Marketing Principle Assignment - Bentley
Diploma in Business
Unit Number and Title
Unit 4 Marketing Principle - Bentley
Bentley is the British organization that designs, develops and manufactures high class motorcars. The organization is known for its well designed car in the world and also provides luxury cars that satisfy the demand of various people. The current study identifies various elements of the marketing process and benefits and costs of marketing orientation for Bentley. The unit 4 marketing principle assignment - Bentley depicts the macro and micro environmental factors that affects marketing decisions and select targeting strategy for Bentley. It explains the buyer behavior that affects the marketing activities and designs the positioning for the new design car. The report identifies the elements that are extended in marketing mix and plan the marketing mix for the two different segments and differentiate the international marketing and domestic marketing.
1.1 Various elements for marketing process
The heart of business success lies in its marketing. Most aspects of business lay on successful marketing. The overall marketing sunshade covers advertising, public relations, promotions and sales. It also focuses on communication skills which is the most important for marketing manager. To promote products it is essential for organizations to use marketing process that is in trends. Marketing is an important portion for the management of internal and external communications, for supporting the creation of tools to improve customer satisfaction, to create/maintain the organization image and its brands in channels such as social networks, blogs, and more in order to ensure a good reputation and recognition to avoid losing current and potential customers. Following are the key elements of marketing process:
- Market strategy: An organization's strategy combines all of its marketing goals into one complete plan. A good marketing strategy should be drawn from market research and focus on the product in order to achieve the maximum profit (Kotler.et.al.2015). The marketing strategy is the foundation of marketing.
- Purchaser pleasure: Customer delight occurs when a business delivers a strong, positive experience that exceeds that customer's expectations. This helps to keep hold of customers for a long period of time.
1.2 Marketing orientation, benefits and cost
Customer orientation is defined as a loom to sales and customer-relations in which staff focus on helping customers to meet their long-term needs and wants, which customers expects from an organization. It is important for Bentley to retain as well as to satisfy their customers.
Figure 1 Market orientation
The following are the key elements of market orientation:
- Team management
- The target market
Benefits of marketing orientation in Bentley- It is important for organizations to be strong at market orientation. Market orientation helps every employee of each and every department to focus on customers Bentley can turn one-time buyers into repeat customers, with a vital goal of developing many loyal customers. Loyal customers buy more frequently and in larger volumes.
Cost of marketing orientation- Cost of marketing orientation depends upon area in which research is been performed In global market orientation Bentley requires a huge amount of funds as compared to local market which require reasonable amount (Goi, 2009). Some of the methods of market orientation are as follows:
- Cost plus prising
- Mark-up prising
- Break-even prising
- Target prising
2.1 Macro and micro environmental factors influencing marketing decisions
Figure 2 Factors affecting marketing decisions
Macro environment affects the larger part of the society. The factors influencing market decisions are political, economical, social, technological, environmental and legal. These all factors include various laws and regulations, condition of the individual, their purchasing power, and society behavior for adopting new technology advancement. And the Bentley has to carefully observe that their products and services are not affecting the environment and using green recycling process. The organization is fulfilling the legal requirement of the business for their growth and productivity in the marketing decisions.
Micro environment directly affects the firm internal environment. The factors such as organization culture, suppliers, customers, competitors etc influence the decision of the marketing management (Kumar.et.al.2011). Culture and ethics should be inbuilt within the organization, contracts with suppliers and payment structure pre decided, core sectors of the competitors should be known and our strength should be utilized effectively and to provide customer satisfaction with innovation in products and services. By using the SWOTanalysis organization can overcome their weaknesses and threats from the competitors and can use their strengths to gain core advantages. The Bentley won’t be affected by these factors if proper planning and strategy for marketing are deployed using PESTLE and SWOT analysis.
2.2 Segmentation criteria for using products in different markets
Market segmentation is a technique of dividing the market on the basis of income, geographical factors etc. Management researches about the customer preferences for the product of Bentley. The criteria are used to classify the market and reach at the level of the success point. The aim of the segmentation is to define the target market. This can be done through knowing the demand of the consumer in different market and then try to design the same demand. The ways to segment a market can be business to business and business to customer or by knowing the behavioral aspects too. Marketing programs also helps in market differentiation i.e. discount offers, price, gifts, promotions etc. It not only differentiates the preferences but also helps to identify the profitable segment with the requirement and purchasing power of the consumer (Alrubaiee and Al-Nazer, 2010). The segment can also decide on the criteria such as individual’s income, age, gender, tastes and preferences etc. Bentley can use these criteria for the market segmentation to gain the competitive advantages from the competitors and to increase the efficiency of the business.
2.3 Targeting strategy for selected product/services in Bentley
Targeting technique is used for the selecting the potential customer for the organization products. It helps to know the organization about the preferences of the customers for their product. It has been analyzed that the organization has wide variety of luxury cars. The general technique for targeting is undifferentiated targeting, differentiated targeting, and focus targeting and customized targeting.
In undifferentiated targeting, there are all types of customer the market in not divided and single marketing mix is prepared for the whole market. This type of targeting saves time and cost which is beneficial for Bentley. Differentiated market use the benefits of segmentation it is much similar to segmentation technique i.e. concentrate on target market. In focus targeting, organization focus on the needs and preferences of the customer and prepares a special marketing mix. Large organizations like Bentley mostly don’t prefer one segment to across the whole market. And last customized targeting, in this organization test the needs and purchasing power of the consumers and make the product according to the requirement of the customer. Targeting is a good approach where employees knows about the needs and can directly connect to customer (Vrontis.et.al.2009). The feedbacks and review for the product can help management for further targeting in future. By this the marketing staffs is also benefited and they can attract customers easily for their products.
2.4 Buyer behavior affects the marketing activities in various buying situations
Buying behavior affects the decision making in the organization. It also helps to determine the needs of the consumer so that organization can change their designs and development work. Purchasing power of the consumer affects the marketing activities so that Bentley can also provide economic range cars to the customer. The buying behavior is also dependent the micro factors and macro factors such as cultural, social, legal, economical etc. Thus management has to frame such policy keeping in mind the external and internal factors affecting the organization (Priem.et.al.2010). The other factors affecting the marketing activities i.e. price, customer satisfaction, brand, quality, comfort level and satisfactory after sales services etc.
2.5 New positioning for Bentley
To raise the brand position of the Bentley management has to make the positioning strategy. It is the most important aspect that facilitates the organization to design positive position in the local and international market. Positioning strategy is been used to create the first position in the market thus it can be said that management can easily create the positive image in the mind of customers. With respect to positioning strategy of Bentley is has develop the innovative strategy that contains various feature like perception of clients, demand of cars, quality of cars etc. To design the positive position in the market Bentley has to produce different cars in UK and offer them to the customers. Management has to full fill the demand of client thus they are able to create demand of luxury products in the market. Innovation is the policy that helps the management to design the positioning strategy in the market. This strategy facilitates the management to accomplish the business goals in more valuable manner (do and Raposo, 2009). Quality of the product is the USP of Bentley that helps the management to create the position in the market.
3.1 Products are developed to sustain competitive advantage
Bank of England is the bank that delivers quality services to the clients of UK. Competitive benefits can be achieved by delivering the innovative ideas to create new products to the customers. Bank of England identifies latest and innovative services for the clients and they are able to achieve the organizational objective. Management attracts the new clients with the help of innovative products in the market and thus it can be said that Bank of England can achieve the competitive advantage in the market. Continuous development in the services and products management can easily achieve the management goals and also sustain the competitive advantage. It helps the organization to maintain the good position in the market. Various factors are considered Bank of England before attaining the new policy in the management to attract the new clients towards bank and design optimistic image of the bank in the market (Chaffey.et.al.2009). The business should assess the demand of customers and try to deliver the services on time.
3.2 Distribution of products to provide customer convinces
In modern market distribution of goods and services play a vital role in development of an organisation. Direct and indirect are kind of two channels though which products can be delivered. Depending upon the mass of consumer’s channels can be selected.
The following are the methods of distribution of products by Bank of England:
- Retail outlets
- Online sales
- Catalogue and direct mailing
In current business world, online selling of products is been increasing rapidly. The organizations are developing their own web portals to attract customersSelling directly through online ways increases reach towards customers. Organization can sell across towns, states, and even across borders, removing all geographical limitations through online distribution. Online shopping can save time for both the buyer, reducing phone calls about availability, specifications, hours of operation or other information easily found on organizations and product pages. Through this Bank of England can collect reviews of their products as well as maintain good relation with customers by solving their problems. Selling products online is less expensive as compared to other modes of distribution (Rahbar and Abdul 2011). Customers can easily compare the products through different website design by comparing their quality and quantity.
3.3 Prices reflects the objectives and market condition of organization
The objectives and market conditions are determined by the price set by the Bank of England. This is the process of setting price of products or services in a low price in order to defeat the competition by gaining market share, expanding the market also can be used by new companies to enter the market Price of a product by Bank of England can be varied according to the following conditions:
- Company strategy
- Product portfolio mix
- Market demand
- Nature of the economy
Price reflecting current position of organization- If a business is selling its products at low price or even on BEP it reflects that business is newly set up and wants to create customers and also wants permanent market position. But this is not in case of those companies who are having a wide market share as well as having the monopoly in the market (Porter, 2011). This reflects that organizational market conditions are excellent and organization is having dominating position in market Bank of England can think about its pricing; if that particular organisation is looking forward to establish its brand in modern market.
3.4 Promotional activity in integrated to achieve marketing objectives
Promotional strategy helps the management to achieve the set objectives and also create the strong customer base for the Bank of England. Organization use different kind of promotional strategies for the development of business and also help the management to meet the objectives on time. Management do various promotional campaigns for the business like low interest home loan, free locker facility, gold loan etc. Advertisement helps the management to increase the sale of business and also improve the image of organization in the market. It assists the business to gain the competitive advantage and also provide global platform to the business. For promotion of the business management use the social media, print media and other online sources that increase the brand value of organization (Farquhar and Rowley, 2009). In the present era digital marketing is the best way to promote the business it facilitates the organization to create the strong mindset for the customers by which are got attracted and chose the products of Bank of England.
3.5 Elements of marketing mix for Bank of England
Marketing mix is the activity that helps the management to promote the services in the market. It also known as the raised marketing mix that help ht management to regulate the quality of the product. Bank of England considers 3P’s to get the business goals this are as follows:
- People: This factor contains customers in the market that need to assess by the business to advertise the services and other facilities in the market. For better services management must give training to the staff and try to satisfy the demand of clients.
- Process: It is the way under which products must be delivered to the clients in order to propose quality services to them. Management has the liability to serve quality services to the clients and provide the services to the clients on time.
- Physical evidence: Under this P management to provide the essential products and services the customers and try to give the valuable product to the client for which they are paying. Bank of England hires the new entrants that are qualified and excellent in communication (Liu and Ko, 2011).
Figure 3 P's
4.1 Marketing mix of two different segments of Vodafone
Marketing mix assists the business to identify the current position of the organization in the market. The mix facilitates the business to evaluate the brand image of the management in the current market. Following are the points that assist the business to plan the marketing mix for two different segments:
In geographic factor of Vodafone will design the services of high variety and quality in order to sustain the international image of organization.
In demographic factor organization plan the services according to the income level of the clients.
Under geographic factor management use to promote the product through internet.
The promotion of the product and services is done through confined media.
In geographic factor organization is more attentive to the selected country (Davis, 2013).
In demographic factor management is paying attention towards the clients and market.
The price of the products is decided as per the price of international similar organizations.
The price of product is set as per the local competitors.
4.2 Difference in marketing of product and services to business
Table 2 Difference between and B2B and B2C
Business To Consumer
Vodafone adopt the term in global industry to offer quality services to the customers
Under this head management does the promotion of the services and products in very effectual manner.
Long and detailed promotion content is being used by the management to convey the details correctly.
In business to consumer marketing of the services are generally conveyed to small and short that is easy for the customer to understand.
The buying process in the B2B is normally identified that it is too longer and takes time.
The decision of buying is depends on the income level of the customer.
The main content in B2B is to expand the industrial relation and do the long term promotion.
In B2C marketing is done on the basis of various medium like print media, hoardings etc (Huang and Sarigöllü, 2014).
4.3 Difference between international marketing and domestic marketing
Table 3 Difference between international market and domestic market
Global marketing is being divided as the exchange of goods and services from outside the boundaries of the country
On contrary hand local marketing is being described as the exchange of services and goods in the local markets.
There are various hurdles in the context such as duty and tax problems in the global market.
In local marketing Vodafone do not contain the high taxes by which consumer can easily purchase the product and did not feel doubt on the small taxes while buying the product.
In global marketing currency exchange plays the significant role sometimes customers face the problem of the currency exchange due to different country (Wilson.et.al.2012).
On contrary, Local market deals in the local currency so there is no hurdle of currency variation.
In international market the mode of imbursement is the letter of credit among business to business.
In domestic market clients can pay through cash or cheques etc.
The current study identifies marketing is a process by which a product or service is introduced and promoted to potential customers and through market orientation organization can easily generate information regarding their customers and their competitors and can analyzed information. The report explains Market orientation helps to increase brand value of products which are been offered by the organization in the market and it helps to build strong and strategic relation between customers and business organization. Advertisement is the base of organization that helps the management to provide the information about the services.
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