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Unit 4 marketing principle Assignment for Bristol cars
Diploma in Business (Marketing)
Unit Number and Title
Unit 4 Marketing principle
Bristol cars are the biggest manufacturer of luxury cars for the consumers that are headquartered in London. More than 45000 employees are working in the organization and organization have showroom in the Kensington High Street, London. The main motive of the organization is to maintain the enthusiastic and loyal clients they are the assets of the organization. The current study assesses various elements of marketing process and identifies the benefits and cost of marketing orientation for Bristol. The report shows micro and macro environmental factors that affects the marketing decisions and also reflects the segmentation basis for new cars in various markets. It aids the management while selecting the target market strategy for the products and apply the positioning strategy for the organization. The report explains that products are developed to gain the competitive advantage and also evaluate the promotional activity is attached with marketing objective. It also plans the marketing mix in different consumer segments and differentiates the international marketing and domestic marketing.
Figure 1 Bristol Cars
1.1 Various elements of marketing process
Different kind of elements is attached with the marketing process that helps the organization to boast up the profit margin and sales. The foremost element of the marketing process is let the buyer beware about the products and services provided by the Bristol Cars. Consumer satisfaction is another term that is related with the marketing process and also helps the management to retain the organization for longer tenure. While deciding the marketing strategy organization has to keep in mind various elements like social issues, competitor policy, price of the product etc. Marketing is the medium that connect the organization to the clients and always explain the pros and cons of the marketing process to the organization thus they are able to implement the best marketing policy for the products. The elements also contains various factors like risk, competitor’s pricing strategy, threat of new entrants, future demand of cars, technology up gradation etc (Belch and Belch, 2016). Marketing process are the elements that help the management to reach the expectations of the clients and always protect the business from any severe loss. It can be said that all the elements assists the Bristol Cars to achieve the long term objective.
1.2 Benefits and costs of marketing orientation for Bristol Cars
Market orientation is the process that helps the business to identify the current trends in the market and also develop the product strategy that identifies the wants and needs of the clients. It is the process that develops the product range and also tries to segment the market as per the features and price of the product. It is the process under which organization can easily evaluate the current market position and develop the chain of new client for the expansion of business. It assists the business to deliver quality services to the clients and also develop the relation among the clients and marketing manager. Marketing orientation is way under which business can identify the competitor policy and create the bench mark for the services. For example Bristol Cars has identified current market trends with the help of marketing orientation and also reveal the innovative ways to increase the sales (Boso.et.al.2013). It can be said that marketing orientation is the way under which organization can provide desired services to the clients, satisfactory services, reduce the cost, higher customer retention and creates link between business and new customers.
2.1 Macro and micro environmental factors affects the marketing decisions
Bristol Cars is affected by the different kind of internal and external factors. Business environment contains two kinds of factors that affect the organization in positive and negative ways that are micro and macro factors.
Macro environmental factors
Political factors: Political factors are the biggest issues that affect the organization form outside the organization. Government interference is the biggest issue for the organization by which management is not able to perform self activities. The political pressure affects the organization and it is biggest hurdle in the growth of organization. For instance government of UK binds the organization to take the marketing decisions as per the political factors.
Technological factors:Continuous change in technology may affect the growth of the organization and affects the productivity of the organization (Stella.et.al.2014). It also affects the profit margin of the organization and always affects the brand image of the organization.
Figure 2 Macro environmental factors
Micro environmental factors
Customers: Customer is the base of organization and it directly affects the sale ratio of organization. Organization’s relation with clients is not good than management is not able to sustain in the market. Bristol Cars has to maintain the relation with the clients in various ways like quality services, provide the demanded car, latest features in the car etc.
Employees: Another important factor is employees they are the most important element in the growth of the organization. They influence the organization behaviour from inside the organization and also affect the operations of the organization (Kildien?.et.al.2014). It is the liability of the organization to keep the employees motivated and develop the relation with them.
Figure 3 Micro environmental factors
2.2 Segmentation criteria for the cars in different markets
Organization can segment the market on the basis of various factors like demographic, geographic and behavioral factors. Bristol Cars is the manufactures the luxury cars for the clients so middle class people are not able to purchase the cars so organization has to segment the market on the basis of income of the people. It is most important demographic factor that influences the organization to segment the market. Organization has to identify the suitable client for the organization in order to segment the clients management conducts the survey and recognize clients for the organization. The segmentation process is mainly focused to divide the market and reach to the client as per the demand. Segmentation is method to divide the market as per the product range and allot the cars to the clients. The general criteria of the organization are selling the cars and reach all variants of the clients (Wedel and Kamakura, 2012). Geographic factors divides the market on the basis of the location of the customers like any clients is located in the New York than marketing manager will reach to that client and sell the product.
2.3 Targeting strategy for Bristol Cars
Targeting is the method under which business will target the clients as per the potential of the clients. It is the best way under which organization targets the customers on the basis of their income, living standard, gender etc. It assists the organization to recognize the perception of the clients and always try to increase the sale of the organization. It tries to provide variety of cars in the market thus business is able to earn desired profits. Demographic strategy is the best way to target the clients and always try to encourage the employees to identify the demand of the customers in the market. To target the clients business has to develop the policy and implement is as soon as possible. Targeting strategy assists the business to develop the innovative product and try to increase the sales of organization. The formal contact with the clients is the strategy of the organization and it also helps the Bristol Cars to recognize the need of customers (Bostrom.et.al.2013). Employees must collect the feedback of the services provided by the organization and is it suitable for the customers in the organization.
2.4 Buyer behavior affects the marketing activities
Customer is the king of market and behavior of the clients affects the marketing decisions making. Organization has to set that kind of policy that is suitable for the customers. Bristol Cars assess the mindset of the clients and then design the marketing strategy by which they are able to deliver quality services to the clients. Marketing activities are the basic pillar of the organization without them organization is not able to launch the new cars in the market. Spending power of the clients is the basis of all the organization while deciding the marketing plans. Behavior of the buyer depends on the price of the cars Bristol Cars has design the top quality car that meet the expectation of buyer. The buyer behavior of the customers helps the marketing department to increase the sales of organization. The marketing policy of the organization must be designed on the basis of social, legal, political, and economical (Solomon, 2014). The buyer behavior plays vital role in the growth of the organization if price of the product is high than it creates negative perception in the mind of customers.
2.5 Positioning strategy for the Bristol Cars
Positioning strategy plays vital role in the brand image of the organization. Bristol Cars has to identify the innovative ideas by which they are able to meet the demands of the clients. Positioning strategy helps the organization to set the benchmark of services for the organization. With the context to the positioning technique Bristol Cars has to develop the strategy that contains various aspects like mindset of the clients, service quality, and demand of cars etc. to set the brand image in the market organization has to design the positioning strategy with the help of marketing department. It can be said that positioning strategy represents the good will of organization in the market or it is reputation of the brand in eyes of the customers. It helps the business to set the positive image in the mind of the customers and also create the brand awareness in the market (Wang.et.al.2016). The strategy helps the business to achieve the organizational goals and maintain the brand image of the organization in the market.
3.1 Development of product to sustain the competitive advantage
Royal Bank of Scotland (RBS) is the biggest bank of UK that provides financial and non-financial services to the clients. It is the duty of RBS to develop the services as per the demand of the clients. RBS develop the services on the regular basis by which they are able to gain the competitive advantage. Royal Bank of Scotland collects the ideas from the employees and clients for the development of services in the organization that help the organization to remain leading organization in the market. Innovative ideas help the business to retain the customers with the organization and keep them updated with the latest facility of the bank. As per the current market scenario all the bank has to develop the services in the market. For instance RBS has develop the new function in the market like online account opening that help the business to attract the new clients towards the organization (Hatch and Howland, 2015). Innovative services help the organization to compete in the market and provide quality services to the customers.
3.2 Distribution is arranged to provide quality services to the clients
Distribution of the services helps the organization to deliver the services on them and is also improving the brand image of the organization. An effective distribution channel aids the management to deliver the services on time with the help of employee support. Internet is the best alternative for the RBS to deliver the services on time. Royal Bank of Scotland assists the clients to commence the online transactions thus they did not face any difficulty to compete the task. Organization provide the physical transaction to the clients if any customer visit the bank than employees of the bank provide full support to the customer and also help bank to maintain the relation with the customers (Plugge.et.al.2013). It is the duty of the organization to provide quality services to the customers but sometimes due to failure in distribution management is not able to provide the services on time. RBS has to identify the problems of the customers if they face any problem regarding distribution channel than try to improve the distribution chain.
3.3 Prices are set to reflect the RBS’s objective and market condition
Price of the services affects the perception of the buyer of price is high than demand of the services will be low but if price is low than demand is high both the context are vice versa. The main objective of the organization is earning the profits with customer satisfaction but if organization will keep the prices high then they are not able to meet the demand of clients. RBS keep the economic prices of products thus any person can bear the services of the organization. The main motive of the organization is to capture market share and set the prices as per the market (Fitzgerald and Haller, 2014). The price of the products are also depends on the competitor prices if they set the high prices than RBS keep the lower margin profits and set the prices to attract the new clients.
3.4 Promotional activity is integrated to achieve marketing objectives
Promotion of the product and services help the RBS to increase the demand of the products in the market. It helps the organization to maintain the brand image in the market and to gain the competitive advantage. Promotion can be done through various activities like sponsorship, marketing, online promotion through social media like Facebook, Twitter, organization website etc. Promotion of the services helps the business to achieve the organizational objective and also increase the sales. In order to increase the sales organization hire the marketing representative that sale the services and products of RBS to the local people with the help of direct marketing. Various innovative ideas and concepts are implemented by the organization to promote the sales of the bank services (Shallu and Gupta, 2013). RBS provide sponsorship to various events and other activities in order to promote the organization. It can be said that promotion of brand is just like reflecting the presence of organization in the market.
3.5 Additional elements of the extended marketing mix for Royal Bank of Scotland
RBS can adopt the additional marketing mix in the organization to strengthen the services in the market. It is the action help the business to increase the sales of the services and products in the market. Marketing mix is the activity assists the marketing department to delivery and quality of the services offered by the bank. Following are the additional marketing mix used by the RBS:
Process management: It is way under which services offered by the bank are delivered on time with proper monitoring and as per the commitment of the organization. The quality of the services offered by the bank is checked in this step.
Physical evidence: The customer is paying the amount of money to the bank than it is the duty of organization that valuable services must be provided to the clients.
People: This P refers to the clients that are the basis of organization in order to retain those RBS should design the attractive offers (Gordon, 2012). To give them better experience organization should provide effective training to the employees.
Figure 4 Additional elements of marketing mix
4.1 Marketing mix for two different consumer segments for Vodafone
Vodafone does business in different parts of the world and organization has high consumer channel. Marketing mix of the organization is very unique and management always tries to attract new clients towards the organization. Following are the points that aid the management to plan the marketing mix for two diverse segments:
Table 1 Marketing Mix
In geographic factor organization is more focused to the select international markets to increase the sales.
In demographic factor management is focused towards the markets in the country itself.
Under geographic factor Vodafone has to advertise the product through social media and organization web site.
The promotion of the product and services is done through limited media.
The price of the products will set as per to the international markets.
The price of product is set according to the confined competitors.
Quality of the product is the main motive in geographical factors (Bowen.et.al.2014).
In demographic factors Vodafone is more concerned with the delivery of the services.
4.2 Difference between marketing products and services rather than consumers for Vodafone UK
Table 2 Difference between and B2B and B2C
BUSINESS TO BUSINESS
BUSINESS TO CONSUMER
Organization is focused to provide quality services to the clients.
Under this B2C organization does the marketing of the services in much defined way.
Long and detailed promotion content is being used by the management to deliver the details properly.
In business to consumer marketing of the services are generally depends to small and short that is easy for the client to understand.
The buying process in the B2B is normally too long.
The decision of buying is totally depends on the buyer.
The main aim in B2B is to develop the industrial relation and do the long term marketing (Wilson.et.al.2102).
Marketing is done on the website of Vodafone and through social media sites.
4.3 Difference between international marketing and domestic marketing
Table 3 Difference between international market and domestic market
International market provides the plat form to the sell the services in global market.
Domestic markets are the local markets that sell the services in the national itself.
International organization has to levy high taxes in the services due to international taxes.
In domestic marketing Vodafone does not include high taxes thus clients can easily purchase them.
Here is the problem of currency exchange and it also affects the transaction of the organization.
There is no problem of currency fluctuation in the local markets.
The mode of payment in the global market is through COD and cheques (Majaro, 2013).
Local market does not have any fixed medium of payment either it is cash, cheque, debit and credit card etc.
The current study identifies that marketing process is the soul of every organization without it a business cannot survive in the market. Marketing orientation help the business to create the positive brand image in the market and also increase the sale of the business. The report identifies that micro and macro factors affect the business internally and externally and business segments the clients on the basis of demographic and geographic factors. The product is developed to gain the competitive advantage and to achieve the organizational objective.
Books and Journals
Belch, G.E. and Belch, M.A., 2016. EVALUATING THE EFFECTIVENESS OF ELEMENTS OF INTEGRATED MARKETING COMMUNICATIONS: A REVIEW OF RESEARCH. ISBN: 10 12-3869 Vol No 4 No 1 June 2016.
Boso, N., Story, V.M. and Cadogan, J.W., 2013. Entrepreneurial orientation, market orientation, network ties, and performance: Study of entrepreneurial firms in a developing economy. Journal of Business Venturing, 28(6), pp.708-727.
Bostrom, A., Böhm, G. and O'Connor, R.E., 2013. Targeting and tailoring climate change communications. Wiley Interdisciplinary Reviews: Climate Change, 4(5), pp.447-455.
Bowen, D.J., Asienga, I.C. and Gogo, J., 2014. Effectiveness of Marketing Mix Elements in Enhancing Students’ Enrolment in Institutions of Higher Learning: Case Study of Two Private Universities in Kenya.
Fitzgerald, D. and Haller, S., 2014. Pricing-to-market: evidence from plant-level prices. The Review of Economic Studies, 81(2), pp.761-786.
Gordon, R., 2012. Re-thinking and re-tooling the social marketing mix. Australasian Marketing Journal (AMJ), 20(2), pp.122-126.
Hatch, N.W. and Howland, C., 2015, January. When Does Competitive Advantage Improve Customer Welfare?. In Academy of Management Proceedings (Vol. 2015, No. 1, p. 18091). Academy of Management.
Kildien?, S., Zavadskas, E.K. and Tamošaitien?, J., 2014. Complex assessment model for advanced technology deployment. Journal of civil engineering and management, 20(2), pp.280-290.
Majaro, S., 2013. International Marketing (RLE International Business): A Strategic Approach to World Markets. Routledge.