Principles of Marketing for Business - Essay Example

?Principles of Marketing for Business Table of Contents Principles of Marketing for Business Table of Contents 2 Part 3 Question 3 Question 2 4Part 2 5 The environment 5 Pricing 6 Questionnaire Design 6 The Product 7 References 8 Part 1 Question 1 Explain one motivation theory and show how an understanding of it could be of use to a marketer. Motivation is one of the most important functions of a manager. The business dynamics of the modern business environment has increased the scope of the aspect of motivation beyond the traditional realms of the human resource department. There are large numbers of theories in motivation that are widely implemented in business organization. One such theory is the Maslow’s hierarchy of needs proposed by Abraham Maslow. Their motivational theory is largely based on a hierarchy of needs. These hierarchical levels can be defined into lower to higher levels as shown in the figure below: Figure 1: Maslow’s Hierarchy of Needs (Source: Phinney & Halstead, 2003, p.15) Marketers can use this theory in conducting market research about consumer behaviour of a target market audience. It is a well known fact that a successful product is largely one that can satisfy the needs and wants of the customers. Hence marketers spend considerable time and resources towards trying to figure out the demands of the customers. The model of hierarchy shows that only when the needs in the lower part of the pyramid are fulfilled the individuals are motivated to fulfil the next level. Marketers can therefore use this model to predict the needs and wants and also use surveys to find out the level of the needs that are being satisfied by the present product offering. Adequate motivation can be provided in the form of innovative advertising strategies so as to motivate individuals to move to the next level of hierarchy. An example in this regard is the computers. Initially computers were desktop based devices and thus fulfilled the basic needs of computing, however as the basic needs of individuals got fulfilled they wanted more value from the products. The arrival of laptops and now tablets is a classic example of how this motivational theory can be used by marketers to gain competitive advantage. Question 2 Choose a product and explain how the market for that product could be segmented. One of the most useful and highly innovative products is the tablet PC. The tablet PC is actually a modification of the laptop and is much smaller in size but has advanced functions and can be very well used as a mobile computing device. The market for tablet PC can be segmented on the basis of price as well as quality. In the current situation a tablet PC would be designed that would have optimal functions and same looks but would be priced on a lower level. The market for tablet PC’s can be segmented on the basis of income levels and age. The low cost tablet would be specifically targeted for the student segment. The product features of the product would be such that it would tend to satisfy all the needs of students with regards to using such devices in their educational needs. It will not carry advanced features like 3G or other high end graphics that are essentially not required for students in their educational activities. The product would come at a very low price tag of only 40 US dollars. The above stated segmentation strategy can largely be stated to be price and need based segmentation of the market. In the case highlighted above the product is segmented for lower income group individuals with a specific need. In this case students perfectly fall into this segment. Other than this there are statistical techniques and tools like cluster analysis and factor analysis that can be used by marketers as a marketing research tool. Gathering real and live data from the market can help generate even better analysis and results and help generate competitive advantage in the market. Part 2 The environment The market environment is perhaps a very important area for marketers. Any organization is largely affected by its internal and exte3rnal environment. Internal environment includes all the internal business processes such as the internal resources, namely human and financial resources as well as intangible assets like brand equity and product quality as well as reputation in the market as well as the elements of marketing mix like product, price, place and promotions. The internal factors are however closely linked with the external environmental factors that broadly include the elements of political, economic, sociological, technological and legal aspects. These are unique for every market and are known to actively influence the business strategies of any organization operating in a business environment. External environment also includes the aspect of competition including bargaining power of buyers, suppliers, substitutes, and new entrants as well as the existing players in the market. Pricing Pricing is a very crucial aspect of any marketing strategy for any product in the market. Pricing involves a strategy under which a firm recovers its cost and generates profit for successfully running the organization. Pricing is a very sensitive aspect and can largely help in shaping the positioning of the brand or a product in the minds of the target market audience. Firms like Wal-Mart draw their competitive edge in the market by virtue of its pricing policies. Pricing can also be used as a tool for segmenting the markets. Low cost airlines are one perfect example in which the low cost carriers have established themselves in the market. Firms are also using predatory pricing in markets to thwart out their competitors. Questionnaire Design In any primary research the aspect of data collection assumes considerable significance. One of the most common tools used for collecting data for primary research involves a questionnaire. Questionnaires can be custom designed for undertaking different types of data analysis so as to gain information from the market directly. Questionnaires can be mainly of two types namely open and closed ended questions. Open ended questions are mainly used to conduct interviews lie focus group discussion and personal interviews for qualitative analysis of the data. Closed ended questions can be of various types and are normally used to collect data for conducting quantitative analysis n a primary research. Common forms of closed ended questionnaire include Likert Scale and multiple options based questionnaires where data can be quantified t generate meaningful results. The Product The product is perhaps the most important dimension in the marketing mix for any organization. The aspect of product is a wide term and also includes the aspect of new product development and also forms the basis of numerous other strategic aspects like segmentation, targeting and positioning. The product is the ultimate aspect that defines the success or failure of a brand because it is the item that is a representative of the demands of the target market audience. The success or failure of an organization can be largely linked to the nature of the product and the extent to which it satisfies the needs and wants of the customers. Firms like Apple draw their core competence based on product features that shows how the aspect of product can help shape up sustainable competitive edge for a firm in the market (Kotler & Armstrong, 2008, p.45-47). References Kotler, P. & Armstrong, G. (2008). Principles of marketing. Pearson Education India. Phinney, D.J. & Halstead, J.H. (2003). Delmar's dental assisting: a comprehensive approach. Cengage Learning. Read More