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Marketing principle is the idea that form the widely agreed upon basis of the most product promotion planning and strategy. The organizations are using the variety of marketing principles in order to optimize the market performance of existing products as well as introducing the new product and services into new market. unit 4 report marketing principle assignment H Samuel will explain the various elements of marketing process that H Samuel has adopted for advertising the products and services and explain the concept of marketing orientation as well evaluate the cost of marketing orientation. H Samuel is part of the Signet Group, the world's largest specialist retail jeweller by sales, with stores in the US, UK, Republic of Ireland and Channel Islands. As well as H Samuel, which has 348 branches, Signet's also owns Ernest Jones. The company started modestly in Liverpool in 1862, when Harriet Samuel took over her father-in-law's clock-making firm, before expanding into a major jewellery group. The remarks proved devastating to the company as shoppers deserted its stores and 300 were closed. Report will carried out the macro and micro analysis of H Samuel and proposed the targeting, segmentation and positioning strategy for new product of organization. Moreover, it will explain pricing criteria and marketing mix elements for new products and develop the plan for two different market segments.
H Samuel is a world’s largest specialist retail jeweller by sales. He owns various stores located at US, UK, Republic of Ireland and Channel Islands and also part of the Signet Group which is a world’s largest specialist jeweller. H Samuel has improved its position in the market by attracting customers through the use of branded differentiated and exclusive merchandise. The marketing strategy of H Samuel is identifying the customer needs and satisfying their needs in all possible and best manners (Kotler, P.et.al, 2015).
Figure 1: Features of Branding
Marketing orientation is the business model or approach that focuses on identifying the customer needs and makes decisions accordingly to meet their all needs in a possible way and thereby achieving customer satisfaction. The concept of marketing orientation is mostly followed by many business organizations and it is a social marketing concept (Urde.et.al., 2013). The marketing orientation approach has many benefits as well as cost associated with it.
Benefits of marketing orientation approach:
Costs associated with marketing orientation approach
Figure 2: Market Orientation
In order to make the decision for marketing the top management of organization needs to consider the following micro and macro environmental factor that have significant influence.
Micro environmental factors:
H Samuels is going to introduce a new jewellery product of Diamond rings, for that organization could focus on the following demographic market segments to promote and target the customer in market of UK.
Targeting refers to selection of potential customers to whom the organization is looking to sell products and services. For that purpose organizations could use different targeting strategies. For the given case, H Samuels could use the concentrate targeting strategy for determined segments like high income group and different age groups. According to this strategy of targeting, H Samuels management will perform the research about the needs of customer in both market and develop the strategy which will include the factors that will influence the decisions. For example, using this strategy of targeting H Samuels will offer the specific information to customers about the new diamond ring products focusing on design and trends in the global market which will help to gain the attestation of potential customers and target them (Lovelock, 2011). This kind of targeting strategy is strongly associated with the serving segment and particular type of product requirements. In spite of that, H Samuels is well establishing brand in UK and the concentrate marketing strategy will help to attract the specific customer groups.
The buying behaviour of customers have significant impact on the marketing planning and activities of H Samuels Jewellery organization as the timing, trends and process of buying the products need specific strategy for encouraging the target customer groups. For the buying and purchasing of jewellery product like diamond rings customer follow the trends, social culture and economic trends to make the decision. This kind of behaviour of customer influences the marketing activities. For example, to deal with the buying behaviour of target customer groups the organization will promote the products by using the social activities like marriage, anniversary, birthday and events of life that will help to change the decision of customers and help to market the new product (Wagner III, and Hollenbeck, 2014). Apart from that, in the low sales situation the organization could target the customer by offering the discount and additional benefits that will support to change the buying decision of customers. In addition to this, marketing of H Samuels get affect by the change in the economic conditions and social activities of target customers as the low disposable income hinder the opportunities for higher sales.
Positioning strategy use with the aim of differentiates brand relation to competing brand to increase the market share and sales volume. Moreover, it helps to encourage the image of organization by communicating the benefits and key features of products. The management of H Samuels could use applications based positioning strategy of new diamond ring product in which organization will present the product for different events and activities like gift on birthday, anniversary, and marriage as well for personal use (Wilson, 2011). This kind of positioning of diamond ring product will influence the decision of target customers. For example, organization will position the new product in different design and quality that will support organization to make positive impact on the buying decision of customers and set the unique brand image. However H Samuels is big Jewellery brand in UK and that kind of positioning strategy will help to promote the new product.
H Samuel needs to consider several factors to earn the competitive advantages form the development of new product. Customer market is seeking the products those are cost effective and special from others. H Samuel should analyse the customers’ demands and expectation to stretch out the future of product to be developed. Organization should be considered the design and cost of the diamonds along the right time to bring the product in market. Wedding sessions and social events are the best opportunities for the H Samuel to hit the market. Thus, organization can design the product to add the nice expression in such events. The speciality in pattern and key feature will differentiate the products from available products in market and will be the key selling point. Addition to this, it is also necessary to know the right customer pool to sale the product (Hoyer.et.al.2010). The product development should consider the social and economic factors of the target market so that customer’s desires can be concluded in product specification. Organization needs to provide best quality and services in new jewelleries in comparison of other opponents in market. The key feature in affordable price along with the availability is necessary to meet the customer market. New product may be developed to collect new customers with different aspects and needs.
The development of a new product may be wasted when it not able to reach the market due to poor distribution strategies. To sale out the new product in market, H Samuel needs to consider the marketing trends to aware the people about the product and let them facilitate to make a purchase. Organization can use online medium like advertisements, discount sales and web interface to reach the customers. H Samuel can use the web and mobile apps to book the order and designs so that product can be delivered within time. Organization can use door step delivery for the convenience of customers. Various stores can be analysed to know the consumption of products in specific reason so that they can be pre-managed to deliver the product in fast and convenient manner (Rushton.et.al.2014).
Addition to it, internet can be used to manage the inventory of each store so that nearby stores can be used to deliver the product in case it is not available in current one. For online and app based sales, organization can provide the discounts and home delivery with a reasonable price and time delay to deliver the best services to customers.
The main objective of H Samuel behind the introduction of new product is to cover the vast area of customers with the competitive advantages. Price of a product includes the summation of material cost, labour cost, marketing cost, delivering charges and the desired profit. Addition to it, the market competition and the demands are also used to set the price. If the product is in demands and trends, then pricing may be higher to earn more benefits. H Samuel can consider all the costs associated with the product to deliver the product in profitable manner. Organization is introducing the products to enhance the economic status so that it should meet the customer demands and quality within the price (Nakamura and Steinsson, 2011). Products may be categorised according to price so that people can purchase the product as of their capability of expenditure.
Figure 3: Setting price for product
Management of H Samuel also need to understand the market condition and reputation of organization so that proper discounts and offers can be associated with the pricing of the product to achieve competitive enhance in organization growth. Management can make prediction on number of sales based on previous sales so that pricing can be changed to meet the organizational goals. For instance, new product can be sold with less profit per unit but once the trend and customers are in organizational favour, pricing can be raised a bit to maintain product outcomes and standard (Alvarez.et.al.2010).
Promotional activities are required to create the awareness in customers so that product can be sold out in desired numbers with maximum benefits. Customers are seeking for the difference in jewelleries and gifts. H Samuel is in newspaper and digital media to introduce the offers and new products. Addition to it, organization provides the web and mobile app to assist the customers to know and browse the products as according to their need. Online ads and discount offers at various sites are the part of digital promotional activities. Organization is also using the banners and brochures to promote the business in specific locations. H Samuel is also hosting and sponsoring the events to get the customers (Brun and Moretto, 2012). Organization is sponsoring various events in store location to meet the local market.
Management is redefining the relation with customers in smooth and reliable manner so that customers can be satisfied and used as the promotional media for organization. Older customers are encouraged to make sales by reducing the price on specific gifts and jewelleries. Organization has started to use own printed box and purse to deliver the product to customer. In this manner, the things are being converted into promotion codes for business.
Marketing mix are facts that should be considered to develop the right approach to reach the customers. Three additional marketing mixes are: people, process and physical evidence. H Samuel needs to consider the significance of all these facts to attain the desired marketing objectives.
Figure 4: Additional Marketing mixes
Following are the marketing mix for diamond ring product of H Samuels for two different segments:
There are various types of products and services which are offered by many business organizations. The type of marketing strategy of these products and services varies on the basis of business-to-business sell or business-to-customer sell. Following are the ways in which the marketing of products and services differentiate in terms of B2B and B2C:
Marketing of products and services in B2B:
Marketing of products and services in B2C:
Figure 5: B2C and B2B Marketing
The international marketing activities concentrate in promoting and directing the flow of products and services to their consumers residing in more than one nation. Where else, domestic marketing activities concentrate with the various marketing practices used for the flow of products and services to their customers in the home country itself (Terpstra.et.al, 2012). The differences between the marketing activities of domestic and international are as follows:
Table 1: Difference between international and domestic marketing
Limited scope and dry up eventually.
More scope for expansion of the business.
Benefits are less as compared to international marketing.
Benefits are more because of added incentive of foreign currency.
No such barriers.
Many barriers such as cross cultural differences, currency, tradition, etc.
Normal risk is involved
Higher risk involved
Control of marketing activities
Control of marketing activities is easy.
Control of marketing activities is difficult because variety of factors such as political, cultural, etc.
Product mix is decided keeping in view consumer satisfaction and increase in sale.
Product mix is decided on the basis of foreign market.
Diverse market fragmented in nature.
Minimum payment and credit risk.
Considerable payment and credit risk.
From the about study it is been considered that marketing principles have significant impact on the marketing planning and identifying the potential changes in the existing marketing activities of organization. Report has provided the information about the elements of marketing and explained the concept of marketing orientation for H Samuels. Moreover, report has presented strategies for targeting, segmentation and positioning of new diamond ring product of organization as well explained the distribution methods. At the end, report has discussed about the marketing mix of two different segments and analyzed the difference between international marketing and domestic marketing process.
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