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Diploma in Business (Marketing)
Unit Number and Title
Unit 4 Marketing Principle - British SME
The study depicts various elements of marketing process that British SME’s will adopt for effective marketing for the selected market and that is influenced by micro and macro factors. The case describes that why international marketing differs from domestic market. The unit 4 marketing principle assignment British SME evaluates that SME’s can develop products to gain the competitive advantage and distributor needs to arrange by British SME’s to provide convenience to the customers. The case describe the segmentation criteria that TESCO use for products in different markets and recognize the targeting strategies use by TESCO for the selected product. The study implicates the buyer behaviour affects the marketing activities in the organization and plan for marketing mix in two different segments TESCO plc caters for.
The British SME’s is an organization who is planning to internationalise their operations in an increasingly complex international environment. The elements of marketing process adopted by the British SME’s for increasing its business are as follows:
Figure 1: Features of Branding
The marketing orientation is the most common orientation which is used in contemporary issues marketing. The British SME’s uses this approach by focusing on leaning and discovering the needs of its customers and attempting to provide for them. The market orientation adopted by the British SME’s has the following benefits and costs:
Figure 2: Features of Market Orientation
The marketing decisions made by the top management authorities of British SME ‘s in order to increase its brand name in the marketplace may have significant influence due to the following micro and macro environmental factors:
Figure 3: Macro and Micro Factors
The domestic marketing activities more concentrates on local marketplace while the international marketing activities concentrates on making the different products for different countries (Terpstra.et.al, 2012). The following are the differentiation between the international marketing activities and domestic marketing activities:
Table1: Differentiation between domestic marketing and international marketing
Domestic marketing means conducting marketing activities within the geographical boundaries of the nation.
International marketing means the marketing activities are extended over the geographical limits of the country.
Use of Technology
Use of latest technologies
Nature of Customers
Variations in customer taste and preferences.
Consumer satisfaction and increase in sale are considered while designing the product mix strategy.
On the basis of foreign market product mix is decided (Ghauri and Cateora, 2010).
Type of market
Credit risk involved
Minimum credit risk
High credit risk
Control on marketing activities
Difficulty in controlling because of variety in factors.
Higher risk involved (Paliwoda and Thomas, 2013)
The several factors has to be considered deeply by the British SME’s for taking the competitive advantages from the development and launching of new product in the market. The customers are now attracting towards those products which are more unique and cost effective. The British SME’s should look forward for analyzing the needs and requirements of the customers before going to develop a new product in the international market (Wheelwright, 2010). The British SME’s should consider properly the economical and social factors of the targeted markets in order to identify the needs and requirements of the consumers over there and develop those products and services which has a higher demand in the market. To have competitive advantages, British SME’s should offer good quality products with affordable prices. This would help the organization in attracting more and more customers in the market. The customers should be provided with the improved and better quality products instead of bored products wrapped up in one big bang (Wei and Chang, 2011). This would also help in keeping the competitors guessing on what else is to come as a replacement foe of building a product.
Every organization is needed to develop such an effective distribution strategy so that the newly developed product is reached easily to its potential customers. The customer satisfaction is only received when the loyalty of customers is achieved to the organization. British SME’s is required to have a proper consideration of the recent marketing trends which helps in distributing the awareness about the newly launched product among the consumers and facilitate them to make a purchase of such product (Fuchs and Schreier, 2011). To know the consumption of products in a specific reason can be viewed by analyzing the various stores of British SME’s. This analyze would be helpful in pre-planning the fast delivering of products and in convenient manner. For the managing the inventory at various stores can be managed by using th0e internet facility. British SME’s can offer various discount schemes and home delivery with a reasonable price in case of online or app based sales. This would help in delivering the best services to its customers and making a timely delivery of products to them (Davies, 2012).
The pricing method adopted by the British SME’s are used in order to set the prices of their products and services along with organizational and environmental characteristics that influences this methods. The new product is launched in the market with the objective to attract more customers in the market and also to get more competitive advantages. The price of a product is the addition of its labour cost, marketing and material cost, delivering charges and the addition of desired profit. While deciding the prices of products, the demand and prevailing market competition is also considered (Nakamura and Steinsson, 2011). The pricing will be higher in case when the demand of a product is in trend in order to earn more profits.
Figure 4: Pricing Factors
The British SME’s can categories its products according to the prices such that the consumers according to their capability of expenditure can purchase their required product. British SME’s should undertake the knowledge about the goodwill of the organization and market conditions in order to form a attracting offers and discounts that can be associated with the pricing to achieve the targets of an organization. In order to establish the newly developed product in the market, British SME’s should sell these products with a less profit margins but once the product becomes a trend, the pricing can be raised at a bit higher in order to maintain the product outcomes and standard (Alvarez.et.al, 2010).
The promotional activities are conducted to spread the awareness about the product in consumers in order to achieve the desired sales target and profits. The organization should make use of social media sites and digital media to promote its newly developed products. The digital promotional activities should include the discount offers and online ads for promoting the products. British SME’s should also sponsor the various events in order to capture the demands of customers (Albuquerque.et.al, 2012). The British SME’s should also facilitate it customers by providing the mobile app and web facility which helps them to choose their desired product according to the set prices and quality. The promotional activities adopted by the British SME’s should maximize the sales and profits of the organization. The promotional activities should not result in bringing a much burden on the cost of organization (Basher, 2010). The organization can use uses television, newspaper and internet to promote and advertise its products in order to establish it in the market and conquer the marketplace successfully.
Figure 5: Promotion methods
The marketing mix is the set of actions used to promote the brand and product of an organization in the market. The service marketing mixis also known as an extended marketing mix. The service marketing mix consists of 7 P’s as compared to the 4P’s of a product mix which includes Product, Pricing, Promotions and Place (Lovelock, 2011). The British SME’s require considering the following additional 3 P’s for attaining the desired service marketing objectives:
Figure 6: 7P's of Service Marketing Mix
Tesco is the multinational organization that operates business in different parts of the world. The management segmented the customers according the demographic factors by which organization can easily the target the customers. The main aim the business is to provide the product according to the need of the customers. Following demographic factors assist the organization to target the customers:
The strategy that assists the management to identify the targeted customers and identify the ways to reach them is known as targeting strategy. Through this strategy customers can segment the customers and sale the product to them. For this sort of matter organization adopts various strategies. To overcome the problems mentioned in the given case the management will use the concentrate targeting strategy for identify the division like age groups and high income groups (Grant, 2016). The strategy of targeting will assist the organization to conduct the research to recognize the needs and wants of the customers in all the concerned market. The management will target the youngsters to buy the electronic gadgets and provide the products according to their needs. For instance management will provide the desired information to the customers and identify the potential customers and easily target them. The strategy is related with the serving segment and the individual product in order to serve better services (Slack, 2015). Tesco is the renowned brand of UK so concentrate targeting technique will help the organization to target more customers.
Perception or response of the buyer plays vital role in the marketing activities by which management has to plan the activities according to behaviour of the buyer. To increase the sales organization designs the strategy to identify the behaviour of the buyer and encourage the target customer groups. While purchasing the electronic items customer’s behaviour is influenced by market trends and offers (Solomon, 2014). This kind of buyer behaviour affects the whole activities of the Tesco. For instance, to change the behaviour of the focused customer groups Tesco provides discounts and offers to the customers in order to change the mind of the customers and increase the sale of the organization. As per the case organization is facing the problem of low sales to overcome this problem management will adopt various attractive policies like buy one get one free, weekend off etc this all techniques help the organization to change the perception of the customer and motivate the customer to buy the product (Vivek.et.al.2012). Change in the economic conditions of the customers also affects the buying behaviour of the customers.
Positioning strategy adopts by the organization to increase the brand value of the organization and to compete with the brand to capture the more market. Other than that positioning assist the management to boast the image of organization by delivering the benefits of the electronic products. Organization adopts the online selling portal of the business in which management sell the products through application and provide various offers to the customers. This facility attracts more customers towards the organization and it will create good brand image of the organization (Derry and Oddsen, 2013). Business floats various offers on the different occasion for example business launch new product in the store and want to promote the new product then management chose the festival on which management launch new product and provide discount to the first thousand customers. Brand positioning helps the organization to set the positive image in minds of the customers and to increase the sale of the store. As per the case business is facing the problem of low sales due to last two years so overcome this problem positioning helps the organization to create the good brand image and increase the sales (Royston and Cox, 2015).
Marketing mix helps the organization to identify the recent position of the business in the market. Following are the points that depict the marketing mix for electronic products for two different segments:
Figure 7 Marketing Mix
Following are the ways in which marketing of products and services differentiate of B2B and B2C:
Marketing of the products and services in B2B
Marketing of products and services in B2C
Figure 8: B2B and B2C Marketing
From the above study it can be identified that marketing principles plays the vital role in the growth of the organization. The marketing planning will not be possible without marketing principles. The report allots the information about the elements of marketing and evaluates the concept of marketing for Tesco. Moreover, report depicts the strategies of marketing, segmentation and positioning of the electronic products in the organization and explains the distribution method. At last report explains the marketing mix of two different segments and analyzes the difference between domestic marketing and international marketing process.
Books and Journal:
Albuquerque, P., Pavlidis, P., Chatow, U., Chen, K.Y. and Jamal, Z., 2012. Evaluating promotional activities in an online two-sided market of user-generated content. Marketing Science, 31(3), pp.406-432.
Alon, I. and Eugene, J., 2012. Global marketing. Mcgraw Hill Higher Educat.
Alvarez, F.E., Lippi, F. and Paciello, L., 2010. Optimal price setting with observation and menu costs (No. w15852). National Bureau of Economic Research.
Bahadir, S.C., Bharadwaj, S.G. and Srivastava, R.K., 2015. Marketing mix and brand sales in global markets: Examining the contingent role of country-market characteristics. Journal of International Business Studies, 46(5), pp.596-619.
Basher, M., 2010. Promotional role of microcredit: evidence from the Grameen Bank of Bangladesh. Journal of International Development, 22(4), pp.521-529.
Davies, R., 2012. Marketing Geography (RLE Retailing and Distribution): With special reference to retailing. Routledge.
Derry, B.A. and Oddsen Jr, O.N., Innovative Office Products, Inc., 2013.Tilter for positioning an electronic device. U.S. Patent 8,523,131.
Ferrell, O.C., Gonzalez-Padron, T.L., Hult, G.T.M. and Maignan, I., 2010. From market orientation to stakeholder orientation. Journal of Public Policy & Marketing, 29(1), pp.93-96.
Fuchs, C. and Schreier, M., 2011. Customer empowerment in new product development. Journal of Product Innovation Management, 28(1), pp.17-32.
Ghauri, P.N. and Cateora, P.R., 2010. International marketing (pp. 15-16). McGraw-Hill Higher Education.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132). Springer New York.