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Unit 4 Marketing Principles Assignment - Lister Motors
Diploma in Business (Marketing)
Unit Number and Title
Unit 4 Marketing Principles - Lister Motors
Marketing principles is the process under which an organization identifies the demand of the clients and evaluates the current position of business in the market. Vodafone is the multinational organization that operates business in different parts of the world. It is a British telecommunication organization that is headquartered in London and contains more than 1lac employees. The current study identifies various elements of the marketing process and discusses the benefits and costs of marketing orientation. The report depicts the macro and micro environmental factors that affects the marketing decisions and also define the segmentation criteria for different products and services in the market. It proposes the new positioning strategy for the products of Vodafone and decision of the buyer affects the marketing activities in various situations. The study evaluate the products are developed to gain the competitive advantage and identify the promotional activity is interrelated with the marketing objectives. The report explains the marketing mix plan for two different segments in the customer market and also defines the difference between international marketing and domestic marketing.
1.1 Different elements of marketing process
Marketing process contains elements that helps the business to generate optimum utilization of the resources and assists the Lister Motors to achieve the organization goals. The process facilitates the organization to lower down the cost of production and enable the organization to identify the needs of the clients and generate the ways to fulfill the demands of the clients. The process is completed into three ways first is segmentation that is done on the basis of demographic and other factors. Second step is positioning, segmentation and targeting strategy is developed to target the new clients for the organization. Third step is marketing mix developed to better services and try to achieve the organizational goals. Lister Motors segment the customers for better services and segment the client on the basis of age, gender, income etc. This kind of factors helps the business to increase the market share and also help the organization to gain the competitive advantage (Kotler.et.al.2015). Marketing process contains various plans and procedures that help the business to meet the demand of the clients and also help the organization to differentiate the products according to the income level of customers.
Figure 1 Lister Motors
1.2 Benefits and costs of marketing orientation for Lister Motors
Marketing orientation is the organizational model that emphasizes on delivering cars and they are designed as per the requirements of the clients. It also assesses the efficiency and functionality of the organization. Marketing orientation help the business to gain the competitive advantage and assist the business to improve the quality of the products that help the business to meet the expectation of the clients. Through marketing orientation Lister Motors can provide better customer care facility to the clients and also improve the relation with the customers. It facilitates the business to develop good image in the market and achieve the desired market position. Lister Motors can raise the profitability ratio with the help of marketing orientation and bring optimum satisfaction level among the customers. It aids the management to focus on the cost of the products and always try to decrease them in order to provide economic products to the clients (Siu, 2015). Marketing orientation facilitates the organization to develop the effective relationship marketing in the organization and create the link between clients and organization thus they are able to generate the desired quality of the cars for the clients.
2.1. Micro and Macro environmental factor which affect the marketing decision of Vodafone UK
Macro environment factors are those factors that are uncontrollable and affect the decision making were as in micro environment all the nearby factors affect the ability o organization they may be suppliers, customers etc. The following are the Macro and Micro environment factors affecting decision making of Vodafone UK:
Macro environmental factors
- Economical factors – Due to recession employees working in Vodafone UK may lose their jobs and may worry about what is happing to them. Due to this customer becomes less interested in investing their disposable income in Vodafone UK. This may cause hindrance in working of Vodafone UK.
- Political factors – Political factors affect the working of organization from outside the boundaries of organization. Because of political factor growth and decision making power of Vodafone UK may be affected.
Micro environmental factors
- Shareholders of Vodafone UK – If shareholder stops investing their capital in Vodafone UK, this may cause a huge loss in organization. They are the foundation of organization any play a vital role in micro environment (Viswanathan.et.al.2014).
- Customers – Vodafone UK has to design their services according to the taste, preferences, likings and disliking of their customers. Customers are one of the most important factors of organization like Vodafone UK.
2.2 Segmentation criteria used for products in different markets by Vodafone UK.
Vodafone UK uses market segmentation techniques in which they classify their customers in the market based on geographic, demographic, psychological and behavioral factors. Management of Vodafone UK should conduct their research on the following factors so that they can design their products and services according to taste and preferences of customers. The reason behind market segmentation is to select and classify that market which can cause benefit for organization. Geographical factor is one of the essential factors for Vodafone UK. In geographical factor Vodafone UK divide their market according to countries, cities, regions etc. In case demographic segmentation Vodafone UK target age of customers and according to them Vodafone UK develop their plan and services. Geographical market includes gender, marital status of customers, there salary and education level. According to this factor Vodafone UK target their customers. Another important factor that is important for Vodafone UK in market segmentation is psychological factor. Psychological factor includes motivation and needs of customers, it also include essential factors like perception, attention, distortion, retention. To succeed in market Vodafone UK has to make strategies and tactics to achieve the advantage of psychological factors (Cross.at.al.2015). Hence, Vodafone UK has to keep in mind all the above factors will targeting customers in different market.
2.3 Targeting strategy for a selected product/services
With the help of targeting strategy Vodafone UK employees can easily recognize the potential customers for the organization. Through this organization can easily know the view of customers about their organization. Vodafone UK provide verity of plans and offers to customers, so this becomes important for Vodafone UK to select and identity those customers who can easily afford their services. Vodafone UK can easily identify their customers with the help of demographic factors. Management of Vodafone UK should develop their product and services according to needs and requirements of their customers so that they can easily attract customer towards them. Organization should develop plans and offers so that they can maintain their customers with them. Management of Vodafone UK has collected all the reviews of the services which are given by their customers, so that they can bring improvement in services which are offered by the organization. With the help of targeting Vodafone UK can easy target their customers and can make direct and better communication with them (Taken Smith, 2012). Criteria according to age, gender, income level must keep by the management so that they can invite new customers towards the organization. With the help of this kind of factors management can recognize the best appropriate customers for them.
2.4 Buyer behavior affecting marketing activities in different buying condition.
Decision making process of Vodafone UK may affect due to buying behavior of their customers. Organization should develop product according to the need and requirement of customers. In Demographic factor Vodafone UK must design the product according to the age, income and gender of customers. Vodafone UK must develop quantity and quality of services according to the wants of society. If a section of customer is unable to purchase services from the organization then, Vodafone UK has to develop low rate plan for that particular section. They have to decide the data plans according to the age of customers. The management has to focus on marketing activities of the organization. Management of Vodafone has to consider the geographical location too (Solomon.2014). With help of geographical factor organization can reach towards their customers easily. Vodafone UK can establish communication channels with the help of geographical factor. With the help of geographical factors Vodafone UK can expand its branches all over the world. Vodafone can target that geographical area through which they are earning high amount of revenue.
2.5 New positioning strategy for Vodafone UK
Positioning strategy facilitates management of Vodafone to increase their brand image in the market. With the help of positioning strategy organization like Vodafone UK can achieve their goals and can create positive market position. Through positing strategy Vodafone can upgrade their market position and can easily increase the quality of service which they are giving to their potential customers. New policies and plans can be developed with the help of positioning. The new strategies can be eye catching offers for general public like discounted offers, special packages offers etc (Blankson.2012). To attack more customers Vodafone UK has to make or develop their services which can provide maximum satisfaction to their targeted customers and through that they can achieve good position in market by fulfilling the needs of their potential customers.
Through innovation Vodafone UK can attract modern generation customers and can hold a powerful and dominant position in their market, this will help in creating good band image. With the help of innovation organization can achieve their goal in most effective and in efficient manner.
3.1 Product development to sustain competitive advantage
Barclays is the second biggest bank of UK that is providing high quality of services to their customers. By bringing quality and innovative ideas in policies and program of bank management can achieve competitive advantage. To attract more and more customers towards Barclays bank their management can make attractive offers to public. It is important for bank to provide best quality of services to their customers as their branches are spread all over the world and has to continuously maintain relation. Barclays bank can achieve competitive advantage by offering high quality of service to their customers and there should be a continuous development in their services also. Various factors like option of customers, demographic factors should be kept in mind by the management of Barclays bank in introducing new policies for customers. Successful new policies will help the bank in increasing their image in market. The major factor in achieving competitive advantage is to satisfy the demand of customers (Diamantopoulos.2016). The management of bank should recognize the needs and basic wants of customers and according to that should deliver best quality to their individual customers effectively and in efficient manner.
3.2 Convenient distribution method for the customers
There should be a suitable distribution plan for services so that their customers can get maximum amount of satisfaction. Barclay banks should develop suitable service for their customers so that they can retain their customers for a longer period of time. It is the duty of staff members of Barclays bank to consider each and each review of their customers, so that they can improve their services on customer demand. The services provided by the bank must be reachable towards the customers. Modern generation customers prefers online services by bank, keeping this point in mind Barclays bank should provide their normal banking services on online also so that they can attract more and more customers towards the bank. Attractive online offers like free processing charges, no charges on money transfer must be provided by bank. These kinds of services lower down the pressure of bank and make safer and easier for their customers to do their banking work. Bigger banking institution like Barclay should provide assistance to their customer in each and each phase of their work (Tan.at.al.2014). Distribution of services among customers is important for banks.
3.3 Price set by Barclays bank that reflect the objectives and market conditions
Barclays bank should know the various aspects before setting up the prices for their services and policies. These factors may market condition, prices of bank competitors, quality of services offered by other bank, all environmental factors. Before setting up price of offered services bank should deeply study the market condition, through this only they can set best and correct price for their services. Barclays bank should know the income status of their customers to see that they can offered the services by bank or not, and another important part is that bank should know the pricing strategy of their competitors in same market. To achieve high advantage in market Barclays bank must provide those services which can be easily offered by their customers. Through this bank can easily achieve a stronger position in their market. There are many factors that provide help to organization to set the prices of their services like good customer base, quality of offered services, and trust of customers towards Barclays bank. The price can be set over according to expenses and profit urn by the bank (Karray.2013). The pricing of the services can be set according to expenses beard by bank on those services, employees’ salary, technical charges etc.
3.4 Promotional activity is related to marketing objectives
Promotion is the best way to achieve the management goals and it help the organization to maintain the positive image in the market. Promotional activities assist the organization to gain the competitive advantage in the market and also maintain the brand image at the global level. Attractive promotion policy tries to generate new clients in the market and also help the Barclays to create the service benchmark for the employees of organization. Promotion is the back bone of marketing objectives without promotion organization is not able to sustain in the market and not able to meet the expectations of the clients. Promotion can be done on the basis of sponsorship, hoardings, online websites etc (McCarty, 2012). Online promotion is the latest trend in the current market thus it help the Barclays to promote the services at global level.
3.5 Marketing Mix for Barclays
Marketing mix is the action that helps the Barclays to retain the clients with the organization for longer tenure. It also assists the organization to increase the sales of services for the organization and maintain the quality of the products in the market. Barclays use the 3P’s to achieve the management goals.
- Physical evidence: Under this P organization provide valuable services in return to the clients thus they are able to maintain the position in the global market.
- Process: Under the process term different kind of plan and procedures are evaluated if management found any threat in the plan than management evaluates the whole process.
- People:This is the most important factor that helps the business to gain the desired result and inform the clients about various innovative services provided by the bank. For quality services bank provide training to the employees (Leonidou.et.al.2013).
Figure 2 Marketing Mix
4.1 Marketing mix plan for two different segments in the customer market for Vodafone UK
Marketing mix is the basis of marketing that help the business to identify the customers as per the functionality of the products and services. It acts as tool under which organization can easily achieve the predefined goals. It aids the management to identify the current market position and help the business to gain the optimum utilization of the resources. Following are the points that help the business to plan the marketing mix for Vodafone UK:
Table 1 Marketing Mix Plan
Advertisement of the services is done through local media like print media, news paper etc.
Promotion of the services is done through social media sites like Facebook, Instagram, Whats app etc.
In demographic factor organization is focused for the place and clients.
Vodafone is focused under geographic factors for the particular place or country.
The price of the products is set according to the local competitor.
The price of the services are set according to the global competitors thus they are able to achieve the organizational goals (Westwood, 2013).
Under demographic factors Vodafone create the services as per the income of the local consumers.
In geographic factors organization develop the services of high quality in order to maintain the global image in the international market.
4.2 Difference between marketing of the products and services to business
Table 2 Difference between B2B and B2C
BUSINESS TO CONSUMER
BUSINESS TO BUSINESS
In Business to clients marketing of services in done on the basis of various social media web sites, mobile phones etc.
In business to business marketing of services is done on the basis of long term plans and implement them for the long tenure.
In B2C marketing customers are the king of the market and information to them is the first priority of the organization.
Business to business has the first priority to maintain the global image in the market and serve quality services to the clients.
The decision of purchasing depends on the earning of the clients and also affects the marketing decision of management.
In B2B buying process is long term process and also depends on the working environment of organization.
Under B2C management commit the marketing of the services in very attractive way to achieve the new clients in organization (Czinkota and Ronkainen, 2013).
Vodafone use the quality service policy in order to serve best services to the global clients.
4.3 Difference between Domestic marketing and international marketing
Table 3 Difference between Domestic marketing and international marketing
Domestic marketing refers to the local marketing or done within the boundaries of the country. It depends on the perception of the local clients.
International marketing depends on the multinational clients that purchase the products at global level.
In local marketing Vodafone does not add the taxes and other expenses thus the products in local markets are of low cost.
In international marketing prices of the products are high because price contains high tax rate, marketing expenses etc.
Domestic marketing does not have the problem of currency fluctuation because the money rotates in country itself.
On the other hand international marketing have the problem of currency fluctuation because they are doing business outside the country or at global level.
In domestic marketing mode of payment is cash, over draft, credit card etc.
In international marketing mode of payment is letter credit, bills payable etc (Shani and Chalasani, 2013).
The current study identifies the various elements marketing process in the organization thus management can easily identify the pros and cons of the marketing. The report explains that marketing orientation gives benefits to the organization like low cost, employee retention, improve employee relation etc. It indicates that promotion plays vital role in the organization like detailed information about the services and products.
Books and Journals
Blankson, C., Kalafatis, S., Cowan, K. and Singh, J., 2012. Market orientation and positioning strategy: review and propositions. Thriving in a New World Economy, p.131.
Cross, J.C., Belich, T.J. and Rudelius, W., 2015. How marketing managers use market segmentation: an exploratory study. In Proceedings of the 1990 Academy of Marketing Science (AMS) Annual Conference (pp. 531-536). Springer International Publishing.
Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing . Cengage Learning.
Diamantopoulos, A., 2016. THE ROLE OF INFORMATION TECHNOLOGY IN THE INNOVATION ROADMAPS OF HIGH-TECH ORGANIZATIONS Enabling early involvement of Procurement in the New Product Development & Launch (NPDL) activities at Royal Philips.
Karray, S., 2013. Periodicity of pricing and marketing efforts in a distribution channel. European Journal of Operational Research, 228(3), pp.635-647.
Leonidou, C.N., Katsikeas, C.S. and Morgan, N.A., 2013. “Greening” the marketing mix: do firms do it and does it pay off?. Journal of the Academy of Marketing Science, 41(2), pp.151-170.
McCarty, M.F., 2012. Minimizing the cancer-promotional activity of cox-2 as a central strategy in cancer prevention. Medical hypotheses, 78(1), pp.45-57.
Shani, D. and Chalasani, S., 2013. Exploiting niches using relationship marketing. Journal of Services Marketing.
Siu, N.Y.M., 2015. Marketing Orientation: Its Perception Within the Further Education in the UK. In Proceedings of the 1997 World Marketing Congress(pp. 602-605). Springer International Publishing.