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Unit 4 Marketing Principles Assignment H Samuel
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.
1.1 Various elements of the marketing process adopted by H. Samuel
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).
- Branding: Branding helps H Samuel in building the good image in the market. Brand helps in building confidence and in clarifying what the business stands for and helps in communicating the position of the business to the audience. H Samuel uses different methods of marketing like promotion and advertisement in order to establish their brand name among the audience (Naert.et.al, 2013).
Figure 1: Features of Branding
- Targeting needs of customer: H Samuel identifies and targets its customers’ needs and requirements in order to fulfil their needs in their best possible way. Customers always demands for something new in better and cheaper way (Majaro, 2014). For this H Samuel provides a variety in diamonds and other precious stones for people of different segments, lifestyles, economic standards, occasions, etc. Special promotions are also provided like on Christmas or valentine day with half offer price on products and 25% off on selected items.
1.2 Evaluate the benefits and costs of a marketing orientation to H Samuel
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:
- Competitive advantages: H Samuel always considered on fulfilling the demands and requirements of its customer and ensures that they provide a best and unique product to them which ultimately provides H Samuel the competitive advantages over its competitors (Abdulai.et.al, 2012).
- Customer centric: Marketing orientation approach helps H Samuel to have full concentration over its customer needs and demands in order to build a good brand name among them.
- Building more customers: Identifying and fulfilling the requirements of customers helps H Samuel in increasing and attracting more customer loyalty and regular shopping.
Costs associated with marketing orientation approach
- Advertising of products through magazines, TV, newspaper and cinemas increases the cost.
- Use of direct marketing procedure through use of company mails and letters informing their new variety and discount schemes also increases the cost.
- Regular updating of the products and discounts scheme on online shopping app also leads to increase in cost (Siddique, 2014).
Figure 2: Market Orientation
2.1 Influence of macro and micro factors on marketing decision of H Samuel
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:
- Customer: For marketing decision understanding of customer perceptions, trends that have positive impact and range of quality that expected by the target customer has influence on the marketing strategy of H Samuel.
- Competitor: Marketing decision of organization has influence of competitor policy, process and activities as H Samuel will look for using different activities that helps to gain competitive advantage (Alrubaiee and Al-Nazer, 2010).
- Supplier: The marketing of products and services helps to improve the demand in target market, now for marking decision about the promotion of products consideration of supplier support is important to ensure the availability of products.
- Political factors: Marketing is wide concept of promotional activity and advertising that undertake the rules and regulation proposed by the government. The changing political scenario of UK will influence the marketing rules that will have significant impact on decision of organization.
- Economic factors: The economical condition of industry and potential market shape the marketing decision of H Samuel as management has to make changes in the funds allocation for promotional activities (Aragay.et.al. 2011).
- Social factors: This is an important aspect of marketing planning of organization like H Samuel that offering the jewellery products. For making decision for advertising organization will consider the social and cultural trends and activities to gain the attention of population.
- Technological factors: In the current scenario marketing is majorly relay on the technical and digital marketing tools like application, text messaging, email, social media presence. The marketing department of H Samuels will focus on the technical changes for promotion and advertising.
- Legal factors: In the current scenario, legal factors like ethical marketing, respect of other products and services, consideration of culture comes under legal factors that have direct impact on the marketing planning of H Samuels.
- Environmental factors: For jewellery organization, environment factors are not having the major impact on the marketing decisions. In spite of that, organization is performing the CSR activities for betterment of environment (Giljum.et.al. 2011).
2.2 Segmentation criteria for two different markets
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.
- Income: For diamond ring, income group selection is essential that will help to segment the product more convincing manners. Income group of upper class will be the key segment for H Samuels to promote the product using the celebrity endorsement and sponsorship. The upper class population will the primary market for H Samuels to segment the diamond ring product (Huang and Sarigöllü, 2012). Income based segmentation will help organization to determine the quality of the new products and gain the competitive advantage.
- Age: Jewellery products are designed and developed according to gender specification and age groups. In order to define the segment for new diamond ring product the organization will choose the age based segmentation criteria that will help to promote the products according to specific age groups such as teenage, adult and married women (Jeston and Nelis, 2014). For that H Samuel will develop different promotional activities.
2.3 Targeting strategy for new diamond ring product
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.
2.4 Impact of buying behaviour on marketing activities in different buying situation
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.
2.5 Positioning strategy for new product of H Samuels
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.
3.1 Explain how products are developed to sustain competitive advantage
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.
3.2 Distribution of product to reach customers
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.
3.3 Setting the price for products
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).
3.4 Promotional activities in H Samuel
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.
3.5 Three addition marketing mix for H Samuel
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.
- Process: It refers to the different processes and policies need to be followed to regulate marketing activities like product delivery, consumption and consistency in services. Flexible and effective process of H Samuel will help it to win the trust of market labour . Efficiency is expected at customer end in service of the organization so that customer relations can be enhanced (Huang and Sarigöllü, 2014).
- People: People of the H Samuel are at core of business to define the culture of organization and the presentation before the customers. The dynamic and talented employees of H Samuel leave the impression on customers which help organization to learn the business growth. This is the responsibility of management to recruit the talented and communicative personalities to present the business in more effective manners.
- Physical evidence: Interior and exterior of H Samuel is not so good. It should make some changes in interior design related to lights, brochures, banners and glasses. Outdoor can be decorated with attractive graphics and glasses so that it reflects the business standard in industry (Luan and Sudhir, 2010).
Figure 4: Additional Marketing mixes
4.1 Marketing mix for two segments
Following are the marketing mix for diamond ring product of H Samuels for two different segments:
- Products: For high income group segment the organization will develop the diamond ring with more additional features like use of gold ring with high quality (Keller.et.al. 2011). This will be defining the effectiveness of product. In spite of that for different age group the H Samuels could develop the wide range of diamond ring in different category of quality and prices.
- Price: Prices of diamond ring product will be according to quality as well the design of ring and use of other elements like gold and silver to fix the diamond. For higher income group the price of ring would be high as organization will provide high quality diamonds. Apart from that, for different age group price will be different as the use of diamond and other elements.
- Place: For offering of new product the organization will give the preference to own stores as well open the exclusive showroom for particular products at market where customer footfall is high.
- Promotion: All kinds of marketing communications are been covered in promotion factor of marketing mix. Advertising is considered as the most employed method which is used by H Samuels. Advertising is conducted on different mediums like radio, TV, cinema and online. Furthermore, another promotional method involves loyalty sales, point of sale display, direct mail and sales promotion (Christopher.et.al. 2013).
4.2 Differences in marketing products and services to businesses (B2B) rather than consumers (B2C)
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:
- B2B audiences more concentrate on expertise and efficiency. The purchase procedure is logically and rationally driven and the marketing strategy used needed with this respect (Vaccaro, 2009).
- Highly expertise and detailed contents are requires in marketing of products and services for B2B.
- A longer chain of command is followed by the B2B marketers since procurement, accounting and their superiors need to approve purchases.
Marketing of products and services in B2C:
- The audience in B2C pays more concentration on deals and entertainment. The choices of consumer are triggered emotionally i.e. whether by desire, hunger, status or cost. Thus, the marketing strategy planned should interesting and entertaining (Dowling, 2002).
- In B2C, to meet the requirements of consumers simply social media activities can also be used.
- The customers in B2C make speedy purchase choices. This would be advantageous for the organization and thus, more effects are laid down in marketing as compared to B2B.
Figure 5: B2C and B2B Marketing
4.3 Differentiation between international marketing activities and domestic marketing activities.
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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