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Unit 4 Marketing Principles Solution
Marketing principles refers to the managing of activities like distribution, advertising and inventory to transfer the goods and services from the seller to the customers for satisfying their needs. These marketing essentials are used to optimise the market opportunities to achieve the goals and objectives of the organisation. In the current study, the report will explain about the elements of marketing process in the Bristol Cars with the cost and benefits of market orientation. It will consider micro and macro factors to identify the buying behaviour of individual that affects the future growth. The report will throw the light on segmentation, targeting and positioning criteria that are used in Bristol Cars. At the end, with new task, it will focus on the competitive advantage that is useful for the development of sustainable products and services of the bank with the description on distribution medium for the customer convenience.
1.1 Various elements of marketing process
There are different elements present in the marketing process of the organisation. Marketing plays a critical role for attracting the customer by considering their demand and fulfilling their and organisation objectives by providing customer satisfaction. It provides relevant information to the customer about the product and services the organisation is offering. Marketing in simple term define as set of procedures and guidelines that emphasis on customer need and demand by providing effective communication, information and delivery of the product. In the current scenario, organisation is using the process of marketing for delivering the right product to the right customer at right place (Kotler.et.al. 2015). Bristol cars can use the various elements of marketing process. Some of them are:
It is very important for the Bristol Cars to understand the needs and perception of the customer for the types of cars they required. Only after analysing this process the organisation can frame the business strategy and plan respectively.
After developing the product, the organisation needs to market their product in the market. Marketing strategy of Bristol cars may be dependent on the competitor’s prices and product along with marketing conditions that are also considered while selecting marketing strategy for the new product or existing product to increase their sales (A. Griffith et.al. 2014).
The organisation needs to provide the customer benefits like discounts, free gifts, innovative offerings, after sales services etc. to attract the customers towards their product to increase their sale with customer satisfaction.
1.2 Benefits and cost of market orientation of Bristol Cars
Market orientation is the process that the organisation determines the current trends in the market and develops the strategy according to the trends that satisfies the customer demands and needs. The benefits of the orientation in Bristol cars are:
Long term profitability- The Bristol cars would have a beneficial and competitive advantage of using the market orientation for the long term profits. In order to retain the customer for long term and for maintaining the relation the organisations uses the online platform for providing the instant services and queries of customer would be resolved on time.
Customer value formation-For achieving the customer satisfaction the only criteria is to consider the customer’s needs and demand so that they are receiving best product for their value (Hollensen, 2015). The Bristol cars can use market orientation techniques for the same.
Cost of orientation- Orientation costs are generally high due to which the organisation is able to identify the need and demand of the product for developing the strategy. The main cost that is involved in market orientation is the market research cost with that it also consumes time and human resources of the Bristol cars but it is helpful for the research of international markets and trends.
2.1 Macro and micro environmental factors that influence the marketing decisions
Every organisation is affected by the internal and external factor. A Bristol car is too affected by the macro and micro environment in the organisation.
Some of the macro factors that affect the marketing decisions are:
This factor is very critical in global environment and affects the most on the functioning and decisions of the organisation. Technology changes taking place very vastly even on marketing the organisation need to use advance technology for providing their services like online services on their official websites that could have a positive impact on marketing decisions (Zeriti et.al. 2014).
The Bristol Cars needs to consider the political factor that includes government rules and regulations that influence the marketing strategy and decisions. And this factor is important in current scenario for maintaining the productivity of the organisation. For example: UK government mandates the organisation to follow the political factor while taking marketing decisions.
Micro environmental factors
Employees are the key drivers of the organisations who take the organisation in the directions where they want. It affects the marketing decisions if employees are not treated equally or discrimination is present at workplace or any other reason than that organisation will not prosper (Turnbull et.al. 2013).
The long run objective of organisation is to maintain their market share and brand image in the market. This could only achieve through customer satisfaction by providing quality services of Bristol Cars.
2.2 Segmentation criteria for the cars in different markets
Segmentation is mainly the process of dividing the market and reaching to the customer for their demand. Bristol cars segment the market on the basis of demographic, behaviour and physical location of the product that are essential elements for segmenting. The organisation also consider income of the customer for segmenting as the organisation is involved in luxury cars which is not affordable by the middle class people so here also segmenting play a important role. Bristol cars even have to conduct the market research and survey for segmenting the product. It is the method dividing the market according to the range of the product and allots the affordable cars according to the respective income of the individuals. The geographical factors divides the market on the basis of the location of the clients and try to reach at their place to meet their need although now it simple to reach the location of the customer through online services that enable the marketing manager to know the point of sale and cars industry mostly have their branches or distributors at every city and states (Cross et.al. 2015).
2.3 Targeting strategy for Bristol cars
Targeting strategy refers to the process of targeting the specific or particular group or individual who shows their preferences for the product. For introducing and promoting the cars of Bristol, organisation can use targeting strategy. The strategy focuses on framing the design and developing the marketing activities on the basis of preference of the clients. Preference of the customer is based on age, values and beliefs that have a significant impact on sale of the product. While forming the strategy the Bristol car had to consider this point because sporty and luxury cars are preferred by young age and other points like competitors move etc. Bristol cars needs to emphasis on the distribution channels too that they are outsourcing or having their in house way of distribution of the product as it less costly in segmenting strategy as their no fund required for the building the structure and sales human resources (Bostrom et.al. 2013). From the point of customers, the customers are even benefited by the segmentation as they don’t have to search in the physical market for their expectations and demand as the organisations make efforts to reach them through online platform by offering vast variety of cars with the comparison in prices for the range of cars that are available.
2.4 Buyers behaviour affecting the marketing activities
Customer has the power to rule the market in the current scenario; this is because the buying behaviour of customers varies according to the needs and expectations of them with respect to products and services. For meeting the expectations the organisation need to frame the strategy that is preferable for the customers. Marketing activities plays important role in determining the buying behaviour without which the organisation will not able to launch the new product. Personal disposable incomes of the buyers also help in knowing the criteria for marketing activities. The buyer of Bristol cars usually prefers to have information search for the product they are prefers to purchase of the automobile industry as it involve huge amount of spending. Hence, information search is also important factor to determine the buying decision. Bristol cars can use social and emotional appeal in the marketing activities so that they can influence the buyer and can change their preferences to purchase of the product. The competitive price and cost of the cars also influence the buying behaviour of the individual which affects the marketing activities of the organisation (Oliver, 2014). The more the marketing of the cars would be there the more people will be attracted. The Bristol car can use the online platform or direct marketing by offering attractive discounts and advanced features for their variety of range of cars.
2.5 Positioning strategy for Bristol Cars
The organisation uses the positioning strategy by brand image of the organization. In the current scenario, the organisation deals with sporty and luxury cars for which they have set a benchmark in the UK country. With the brand image the organisation will avail the benefits of competitors by promoting efficient tool of advertisement and Promotion. The organisation is famous for providing the quality services and customer satisfaction with cost control techniques in their production which would help them to achieve the position in the market with respect to brand image. This strategy would also help the organisation to provide the excellent promotional activities as well also helps in planning, directing and controlling functions of the organisation with the available scarce resources. The other benefits with the positioning strategy would be that the Bristol cars would able to attain the customer loyalty which is the main focal point for every organisation. The organisation would be benefited by receiving the improvement in employee relation, as employee will have the trust on the organisation that have able to maintained the brand image in the market (Sirianni et.al. 2013).
The customer trust would be attainable in the long run through brand recognition that will in return the retention of the customer for other services also that are offered by the cars industry in respect of the cars they are offering. With strong positioning strategy the organisation would able to maintain their market growth and sustainability in the long run. Bristol cars would able to achieve the positive image in the market with respect to customer as well with management.
3.1 Development of product to sustain the competitive advantage
Sustainable competitive advantage is very important for the long term viability and success. Standard chartered bank is one of the biggest banks of UK with a history of 150 years quality service in banking sector. It is regulated by the prudential regulation authority and financial conduct authority and ranked among the top five largest banks by market capitalisation. Competitive advantages are the strengths an organization should possess to compete with other competitors. Sustaining the customers is most important to build a brand and to become a world leader. Sustaining competitive advantage allows the improvement and maintenance of the organization. It is an advantage that enables Standard Chartered to survive against the competitors. It is the duty of the organization to develop the services as per the demand of the client. Organization collects information and ideas for the employees and the customers to improve their services day by day through feedback system. As per the current scenario in the banking sector, all the banks are focusing on their services to attract the customers, so by adapting new ideas the Standard Chartered bank is always focusing on quality services to the customers (Thompson.et.al, 2013).
A competitive advantage is an advantage over the competitors; it is gained by providing customers great value by lowering the loan interest and more interest on investment by them in the bank.
3.2 Distribution is arranged to provide quality services to the clients
Distribution is very important for the organization; it can be done by opening more and more banks and ATMs at every possible location. Distribution process helps organization to deliver quality service to the customers and also making a brand image. Internet has made everything easy, it provides banking services to the customers timely and easily. There is no difficulty for the customers to online transaction of money, as it is not a complicated process. Organization also provides physical transactions to the customers who do not use internet, for that customer has to visit the bank. Employees assist them to complete their transaction and maintain a good relation with them. It is the duty of the organization if sometime there is a failure of the distribution management to provide them banking facilities and do the needful. Standard Chartered has to find the problems which the customers are facing and tries to improve their distribution channel (Christensen, 2013). Customer is the most important person on whom the business grows, a good market would tell what the customer need and want. Organization need to know what a customer’s likes, they need to attract the customers and to be friendly with them. Customer value would tell the difference between what a customer gets from a bank and what he/she has to give to the bank.
3.3 Prices are set to reflect the Standard Chartered objective and market condition
Pricing is important and the most important part in the element of the marketing mix. For a good return, pricing should be set out correctly for giving profit to the organization. Pricing affects the perception of the buyer, if the price is low then demand will be more and if the price is high then the demand will be low automatically. The main aim of the organization is to keep the prices low to meet the demands of the customers and satisfy them. Standard Chartered keep the prices of all its services and products economic so that they can bear the services of the organization. Organization’s main motive is to capture the market and set prices as per the market. The prices are totally dependent on the prices of the competitor; Standard Chartered keeps its margin low and set the prices to attract the new clients. There are strategies that are used by the organization for setting out the price of the product (Obizhaeva, 2013). This is the process of setting the price of services and product as low as possible in order to defeat the competitor. Organization tends to have differential strategy where they set different price of products or service in the market, also demand oriented policy where trend is evaluated effectively.
3.4 Promotional activity is integrated to achieve marketing objectives
Achieving a market objective requires lots of variety of business strategy and promotional activities. Promotion focuses on strategies that an organization could use to provide information to the customers. It involves personal selling, advertising, sales promotion and public relation for promoting its activities. Promotion can be done through lots of activities like marketing, sponsorship, online promotion on social websites. Promotion helps organization in achieving the goals and increases the sales. For promotion Standard Chartered hires marketing representatives who help in marketing of the product and gives business to the organization (Gilchrist, 2015). Bank also provides sponsorship to events and programs for promoting their services all around the world. Through marketing the organization reflects its presence in the market. Public relation is an important element involving the promotion of the brand. Organization has to maintain its brand value for building a reputation in the mind of the customer.
3.5 Additional elements of the extended marketing mix for Standard Chartered
Marketing mix has three basic elements in it i.e. people, process and physical evidence. People define a service; they are also one of the elements of service marketing mix. As most of the customers buy a product by analysing the service provided by the staff, therefore efficient staffs are must for the organization. The customer that is the basis of the organization, in order to retain those lots of offers is designed by the organization. Organization provides training to their employee for giving best services to the employees. The process of Standard Chartered is very clean and clear, nothing is hidden. It is the way by which the organization delivers different services to the customers and properly monitors them. The physical evidence is an important element of marketing mix as customers would make their decision based on the service which is indescribable (Christopher.et.al, 2013). The customer is paying the amount of money to the bank and it is the duty of the bank to provide necessary services to the customers.
Standard Chartered bank adopts these marketing mixes in the organization to increase the strength of their marketing services. It would help the business in providing services and product sales in the market. Marketing mixis the policy that would help the marketing department in providing quality services to the organization.
From the above study, marketing principles and the planning of promotional activities plays a significant role on the productivity of the Bristol Cars. The report had focussed on the elements of marketing process along with market orientation benefits and cost. Further in the next activity, it had described about the macro and micro factors that influence marketing decisions with that targeting, segmenting and positioning and buyer behaviour criteria had been summarised very well in the report. At the end, with the new role, it had depicted the elements of marketing mix with its usage to achieve competitive advantage in Standard Chartered.
Books and Journals
A. Griffith, D., S. Lee, H., Seob Yeo, C. and Calantone, R., 2014. Marketing process adaptation: Antecedent factors and new product performance implications in export markets. International Marketing Review, 31(3), pp.308-334.
Bostrom, A., Böhm, G. and O'Connor, R.E., 2013. Targeting and tailoring climate change communications. Wiley Interdisciplinary Reviews: Climate Change, 4(5), pp.447-455.
Christensen, C., 2013. The innovator's dilemma: when new technologies cause great firms to fail. Harvard Business Review Press.
Christopher, M., Payne, A. and Ballantyne, D., 2013. Relationship marketing. Taylor & Francis.
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.
Gilchrist, S., Schoenle, R., Sim, J. and Zakrajsek, E., 2015. Inflation dynamics during the financial crisis.
Obizhaeva, A.A. and Wang, J., 2013. Optimal trading strategy and supply/demand dynamics. Journal of Financial Markets, 16(1), pp.1-32.
Oliver, R.L., 2014. Satisfaction: A behavioral perspective on the consumer. Routledge.
Sirianni, N.J., Bitner, M.J., Brown, S.W. and Mandel, N., 2013. Branded service encounters: Strategically aligning employee behavior with the brand positioning. Journal of Marketing, 77(6), pp.108-123.