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Unit 4 Marketing Principles Assignment Copy 1
Diploma in Business
Unit Number and Title
Unit 4 Marketing Principles
Task 1 A
Process and Stages of Marketing including marketing mix
Marketing principles solution is the process through which the companies those are developing and trying to sell some specific goods or services communicate to the consumers regarding the same through various methods and channels. Hence as has been confirmed by a number of previous researchers and industry practitioners, it its purest form, marketing can be confirmed to be a process for information dissemination. However due to the various industry dynamics and increased level of rivalry amongst the companies in the same industry space, the same has become a significant differentiator between the companies. To develop a marketing strategy as well as marketing mix effectively and efficiently it is important for the companies to ensure that they are well conversant with the process and stages of marketing and follow them for the development of the marketing strategy as well as implementation for the same. There are various stages and processes for the marketing which are as following (Kotler, 2013):
A. Market Research
Market Research is the stage from which the marketing process initiates and this is done by the company for the purpose of identifying the needs, wants and requirements of the consumers in the market which is being considered by the company. This not only validates the business plan and idea of the company but also helps the marketer to identify as well as understand the kind of uptake that can be expected through the various products or services which are being considered by the company. This process leads to the NPD (new product development) process in which according to the taste and requirement of the consumers who have been surveyed during this stage, the product ideation and finalization process is done.
B. Development of the product or services
New product or service development is an integral stage of the marketing process in view of the fact that this is the stage during which the products are ideated as well as finalized which are offered to the end consumers. Product design is a very critical phase for the reason that any error judgment during this stage may lead to failure of the product or in extreme case for the entire brand. Hence it is of utmost importance that the companies design their products well and in accordance to the requirement of the market that has been identified through the previous stage.
C. Deciding on the marketing objective
Marketing for any company may have different objectives including brand building, brand repositioning, loyalty development, sales boost etc. On the basis of the marketing objective which is being decided and finalized by the company, the marketing communication and the nature of the same also gets altered and for this reason, it is important that the marketing objective is decided before the various marketing propositions are looked into. Also it is important that the marketing objectives of the company are in sync with the corporate objectives of the entire company. Any mismatch between these two will lead to internal resistance and confusion for the internal stakeholders.
D. Segmentation and targeting of the consumer base
This is also very important in terms of the marketing processes in view of the fact that this is the stage through which the target market is decided for the product or services by the company. In view of the fact that any marketing activity requires a well defined target market on the basis of which the marketing mix is decided by the company, this step is needed to be completed with a high degree of efficiency and effectiveness.
Segmentation can be defined as the process in which based on various characteristics, the entire consumer market is clustered into few near homogeneous groups. Some of the characteristics which can be used for the purpose of carrying out this activity are (Ngai, 2003):
- Demographic criteria
- Geographic criteria
- Psychographic criteria
- Behavioral criteria etc.
Through these criteria the customer base is segmented in smaller groups which are expected to have similar response or buyer behavior as well as purchase decision making for the product or the service that is being marketed by this company. Segmentation also helps in knowing the target market well to identify the kind of channels which are needed to be used for the purpose of marketing communications.
Targeting is an integral part of the strategy for marketing for the brand through which the entity identifies the most appropriate customer segment for the product that is being offered by it. The chosen segment is one or many of the groups which were identified during the process of segmentation. The target segment usually is the one which can be estimated to be most profitable in terms of the sales and business for the company.
Following are few types of targeting:
- Concentrated targeting – In this type of targeting, campaigns communicate benefits desired by a single specific segment
- Differentiated targeting – In this type of targeting, multiple campaigns communicate benefits desired by different segments
- Undifferentiated targeting - In this type of targeting, campaigns communicate benefits desired by all the segments
- Individualized targeting - In this type of targeting, campaigns communicate benefits desired by singular customer
Both of the activities of this step are extremely important tasks for making sure that the company’s marketing strategy are effective in terms of the consumer base. This also provides the company with a chance of sizing the target market for the product that is very essential for the development of an assessment related to the possible sales volume of the company (Ngai, 2003).
E. Finalizing the remaining Marketing Mix
Through this step the various factors of the marketing planning are defined. This includes the product, promotion, place and pricing. Through this step, the product that has been developed as a part of the marketing process is developed into a desirable object for the consumer. Various promotion mix and the channel mix is also decided through this step in which it is decided which kind of communication strategy and communication channels those will be used by the company for the marketing of this specific product (Kotler, 2013).
One of the major decisions which are taken during this is the pricing decision for the product or the service by the company. Pricing is the outcome of the production cost as well as the pricing strategy of the overall brand. There are a variety of aspects which are needed to be assessed for defining this strategy of pricing for the specific product by the company. Placement defines the way the product is made available to the end consumers. This defines the distribution strategy of the products which can be through the stores of the company or the other stores.
F. Monitoring the plan for measuring its effectiveness
The concluding process which is to be done as part of the marketing stages for any company is the task in which the company checks as well as determines the effectiveness that is being shown by the chosen strategy of marketing as well as the other elements for marketing. This is very helpful for the companies in view of the fact that it is effective on not only identification of the resources which are being spent for the strategy and activities of the marketing but also provides the company with a blueprint that can be used for marketing activities in the future (Kotler, 2013).
G. The role of marketing in creating value for the customers
Although marketing is the process through which the companies those are developing and trying to sell some specific goods or services communicate to the consumers regarding the same through various methods and channels, it creates a lot of value in the mind of the consumers as well. For identifying the same, it is important to be stated that marketing is not only advertising. Advertising is always a part of marketing but marketing does not always include advertising. Marketing as a process is more wholesome and is aimed at providing ubiquitous solutions to the various problems which are faced by the individuals (Majumdar, 2001).
This starts from the market research for indentifying the type of product that is needed by the customers. As part of the marketing activities, the companies need to identify the needs, wants and requirements of the consumers in the market which is being considered by the company. This not only validates the business plan and idea of the company but also helps the marketer to identify as well as understand the kind of uptake that can be expected through the various products or services which are being considered by the company. This is the process basis which the new products of the companies are developed in accordance with the consumers’ requirements. Hence marketing is primarily aimed at providing a solution to the consumers and thus bringing in values for them. Marketing also creates the value for the consumers in view of the fact that the pricing as well as the distribution strategy for the products or the services are defined as part of the same. These are very important as the same defines the price which the consumers need to pay for the product or how easily the products can be accessed by the end consumers. Hence it can be said that a good marketing strategy always brings in a lot of value for the consumers and makes it a win-win situation for the consumers as well as companies. Also the company proportionately allocates its sales force, budget for the marketing as well as investments for the research and development toward the customer segments as part of the marketing strategy which in turn leads to a lot of value for the consumers. Also, the growth capital for the companies are allocated towards the development of new products, services in addition to solutions which can serve the customers in the best possible way and can lead to new set of loyal customers for the company which is also very profitable for the companies in the long run (Majumdar, 2001).
Stakeholder engagement and their impact on the marketing activities of an organization
There are various stakeholders who are relevant for any business and the same have impacts not only on the business activities of the companies but also lead to a lot of influences on the marketing activities of the organization. The most important of them is the customers of the companies in view of the fact that they are of the central influence for most of the companies. As has been identified in the previous section through the customer centric market researches the customers can influence the marketing.
One more very important other stakeholder is the government or other regulatory entities of the industry. Governance as well as social responsibility is two very important factors in the modern day business and most of the companies are bound by the ethical framework within the industry. As part of the business and marketing the companies are needed to balance their environmental as well as social responsibilities with their profit motives. Business partners and the vendors of the companies also have a lot of influence on the marketing activities of the companies in view of the fact that dependency of the business processes are also on these entities. The collaboration between the companies and the other vendors are of utmost importance for the distribution and logistics as part of the marketing of the company which also strengthens the customer value.
Task 1 B
A Reflection of the tactical communication tools used to generate awareness and interest
There are various tactical communication tools which can be used to generate awareness and interest amongst the target consumers. In the modern day business scenarios the most important communication tools that are used are the ones those are used over the internet. The most important of them is the social media. Brands these days have been using social media for creating the awareness for the newly launched products and services. In view of the fact that the social media is a very interactive platform in which the companies can have a two way conversation with the consumers regarding the products or the services which are being launched by the same, this is highly effective and efficient in terms of a tool used to generate awareness and interest. Also people these days are fairly active on the social media platforms and the customers can be segmented on this platform very efficiently as well as effectively.
The other very important communication tool can be blogs posting by the companies. The blog postings are very effective tool for information dissemination. Also in view of the fact that information and knowledge dissemination are important for generating awareness and interest in the mind of the customers, the same can be used with a lot of effectiveness. The text information in the blogs can be supplemented through the videos and pictures which add to this efficacy of the tool. Also in view of the fact that the customer are well conversant with the internet as the tool for gathering information, the companies can reach out to the consumers who are relevant and important for them (Bateson, 2013).
The other tools which can be used for the purpose of generating awareness and interest in the mind of the consumers are various ATL (above the line) and BTL (below the line) activities. These include the traditional media like newspaper advertisements etc. apart from the SMS and email campaigns to the consumers. Database marketing is a very efficient tool for awareness and interest generation and the same can be done through sending out a series of SMS and emails to the relevant customer segment by the company. These also ensure that the company can redirect these customers to the website or the social media page for the company which acts as the repository for contents of the company (Bateson, 2013).
Bateson, J & Hoffman, K. 2013. Managing Service Marketing. Boston: Dryden press.
Burrow, J & Everard, K. 2004. Business Principles and Management. 12th ed. USA: Thomson.
Hawkes, C. (2002). Marketing Activities of Global Soft Drink and Fast Food Companies in Emerging Markets: A Review. Chapter in World Health Organization Report Globalization, Diets and Noncommunicable Diseases.
Kotler, P., Keller, K. (2011) Marketing Management. Prentice Hall.
Majumdar, R (2001), Product Management, PHI Publishing Group, Page 99-107
Ngai, P. (2003) Subsumption or Consumption? The Phantom of Consumer Revolution in “Globalizing” China. Cultural Anthropology 18(4):469–482.