Relevance of marketing concept to the 21st century business of sainsbury - Essay Example

?Introduction Marketing is the process of creation, communication, deliverance and exchange of offerings that are of value for the s, partners, clients and also the society collectively. Marketing is also the creating, maintaining, and managing of the customer relationship for a long term in ways that are beneficial to the company and also the shareholders. Marketing is science of choosing the target market via market segmentation and analysis and also getting the insight of the consumer buying behaviour and giving them superior and better customer value (Roe, 2004). Description of the Marketing Concept The marketing concept is goal oriented and integrated concept that producers of services and goods practice and the basic focus is upon the satisfaction of needs of the consumers over needs of the company that is producing (McCarthy, 1960). The marketing concept says that the needs and the desires of the target market should be determined and fulfilled so that the goals of the producer can be achieved successfully. The major role of marketing is to assist in the identification, satisfaction and retention of the customers. The loyalty of the customers can be gained by constantly delivering the competitive advantage. A general term that is used for describing the various kinds of options that are available to the company for bringing their service or product into the market is known as marketing mix (Fletcher, 2004). There are four Ps that come in this marketing mix that mean product, promotion, price and place. The value added selling concept is gaining importance day by day for quite some time now. So many services and products in the market today are considered to be commodity and therefore the addition of value to them is absolutely important. It is very important to provide a high professionalism level and an expert advice (Ferrell et al., 1998). Packaging, service levels, frequent buyer programs, recognition and rewards, transitions, education, qualititative presence, speed of service and delivery, insider information and dedicated personnel are all important things when it comes to adding value (Wrigley, 2000). Market segmentation is also an important phenomenon as the buyers of the service or a product are not members of a homogenous group. In actual all the buyers have their own specific needs, characteristics, preferences etc (Assael, 1992). The common characteristics help in the development of standard marketing mix for all similar customers in a segment. Some of the researchers have regarded segmentation as the strategy for conquering the markets by dividing them. Target Market is a term that describes the segment of the market o which the specific service or good is marketed. This is mainly done on the basis of gender, age, geography, demographics and socio economic grouping etc. Target marketing relates to the market breaking up into segments, and after that concentration of the marketing efforts upon a single or few of the key segments. The process of target marketing makes the process of pricing, promotion, distribution much easier and much more cost effective. It provides a focus on all the marketing activities (Smith, 2001). Positioning relates to the way the potential buyers visualize the product and it is the position that your brand has in the minds of target consumer. Domestic marketing involves the marketing strategies that attract and impact the customers within a country’s political boundaries. In the international marketing there are no such boundaries and the target market can be within or outside the country. There are several differences between domestic and international marketing (Veliyath and Fitzgerald, 2000). The scope of the international marketing is unlimited and has endless opportunities whereas in the domestic marketing the scope is very limited. The benefits in international marketing are much higher than the domestic marketing. The use of technology and its sharing is much more in the international marketing whereas in the domestic marketing it is very limited. Political concerns are much higher in international marketing whereas there is no link between the political issues and the domestic marketing. A lot of barriers like language, cross cultural, traditions, language and customs are there for international marketing whereas no such thing is there in domestic marketing (Kelly, 2002). Introduction to Sainsbury Sainsbury founded in 1869 operates in more than 1106 stores and supermarkets and has over 157000 employees. Sainsbury puts its customers at the top of everything and deliver the best shopping experience to its customers. The strong culture of the company plays an important role in the success of the company. Business objectives and strategies of Sainsbury A long term and clear strategy for delivering the vision of being the best trustworthy retailer where everyone loves to shop and do work. The business strategy for the growth purposes is dependent on the excellence in operations. Values of Sainsbury There are basically five values on which the Sainsbury’s business is based. The five values include sourcing with integrity, beast for health and food, making a positive difference to the community, respect for environment and best place for working. Sourcing with Integrity By having this value it is meant that Sainsbury provides customers at a fair price with quality products, doing so in a way that is better for the farmers, animals, growers and workers incorporated, and which reduces Sainsbury’s influence on the environment. Best for Health Long heritage of offering great food at fair prices, Sainsbury aims to be the best for health and food. Bringing in a Positive Difference to the Community For Sainsbury retailing is more than just great service and quality products. It is basically more about helping and supporting the communities where Sainsbury operates, and proving to be a good neighbour. Sainsbury aims at being at the heart of all the communities they serve in. Respect for Environment Respecting the environment for Sainsbury is about doing the right thing. Sainsbury aims to be UK's greenest grocer, that is good for our business but at the same time better for environment. A Great Place to Work Sainsbury relies on 157,000 employees working in our stores, depots and offices to provide great service for our customers every day. They are Sainsbury's face and critical for business goals. So it is very significant for Sainsbury to be a great place for working. The company aims at helping the customers to feel and also look better than ever before. The company treats its customers as kings. Innovative products and the ones with greater value are the things that are most important to the customers so the company is committed to make them available to the customers. The company treats its people with a lot of care as they are the main asset of the company. The company believes in bringing in difference and also feels proud of the contribution it has made towards the welfare of the communities that it serves in. The core values of the company include partnership, trust, service, entrepreneurship and simplicity. Marketing Concept and Sainsbury in the 21st Century The marketing strategy of Sainsbury includes the growth in the core business by the concepts of innovation and value creation, constant improvement in productivity and growth opportunities in new high growth markets launch of the company products brands in different and new markets and also the deliverance of synergies by transformational strategic partnerships. A marketing tool known as Ansoff’s market matrix should be used by Sainsbury to achieve the growth objectives. There are four main categories of this matrix that include the market penetration, product development, market development and diversification. Sainsbury should focus upon customer needs and competitors and for this Sainsbury needs to invest in the market research. It is suggested to Sainsbury that while in the phase of developing its marketing mix the company involves the customers and ask them what they want in the product or service that would provide them with satisfaction. The features that the like and want to be present in the product or service, the appearance and also ask them about their previous experience with the product or service and try to improve it according to their suggestions. Then Sainsbury should also do a research and try to find out where the buyers search for your service and product. Let them know if your products are also available online and where are your stores located and what are your future plans of opening new stores. Take suggestions from them and while opening a new store keep the suggestion that gave you in mind. Let them know the way they can access the correct distribution channel. Then comes the pricing, it is very important for Sainsbury to let its customers know the products and the services’ value. Let them know if you have discount packages and schemes coming up, get an insight that whether the customer is price sensitive or not. Let them know the reason for difference between you and your competitors pricing. Promotion relates to the understanding of the right time to get across the marketing messages to target the market. The channel of promotion that you will be using is an important decision to be made by Sainsbury. The strategies and the promotional techniques of the competitors cannot be ignored in such a competitive world. There are three more Ps being used these days in addition to the four mentioned above. Sainsbury also need to pay attention to them that are people, processes and physical evidences (Kotler and Armstrong, 2007). Marketing mix elements can be produced to make a contribution towards the values and goals of Sainsbury. Increase in globalization has opened new horizons and challenges for the company. Joint ventures, partnerships are few things that the company can do in such a competitive and globalized world (Okumus, 2003). The increase in the purchasing costs for Sainsbury has increased the prices of the products that the company offers. Through segmentation Sainsbury can look at all the differences that are there amongst different customer groups and thus come up with best suitable strategies for all the different segments. Sainsbury need to make sure that it does not over or under position its products in the customer minds. Situational Analysis includes the SWOT Analysis and the environmental analysis of existing markets for Sainsbury. Sainsbury is one of the oldest companies that started retailing in UK and has earned a good name over all these years. The basic strengths of the company is the reputation it has developed for high quality, the strong relationships that is enjoys with its loyal customers, the customer intelligence it has got over this time period etc. The weaknesses include the declining reputation, change in the management team etc. Whereas there are still opportunities like increasing the morale of the staff, trainings, online shopping etc. But still the threats of ever increasing competition are a cause of big worry for the company. Sainsbury can take use of the porters 5 forces model for the situational analysis. The company is facing threats from the substitutes, from other products and also the competition is increasing day by day. This is increasing the bargaining power of the customers. So overall the company needs to be very careful in such a competitive environment. The buying behaviour of the customers is greatly affected by the increased competition. Conclusion Sainsbury has a very strong position in the market as it has a strict check over the competitor’s policies and the environment that it operates in. Sainsbury has been very successful and being able to earn a good name due to its care for its internal employees. Sainsbury believe of treating its internal competitors they way it wants its external customers to be treated has assisted in earning a strong position. By following the suggestions and analysis in this report Sainsbury can be even more successful. References Assael, H. (1992). Consumer Behaviour and Marketing Action, 4th Edition, USA: PWS-Kent. Borden, N.H. (1964) Concept of marketing mix, Journal of Advertising Research, 4, pp.2-7. Ferrell, O., Hartline, M., Lucas, G., Luck, D. (1998) Marketing Strategy, Orlando, FL: Dryden Press. Fletcher, J. (2004) The Art and Science of Interpreting Market Research Evidence, Chichester: John Wiley & Sons. Kelly, J. (2002) Market research industry: View from the bridge, Admap, Issue 429. Kotler, P., and Armstrong, G. (2007) Principles of Marketing Pearson, Prentice Hall, New Jersey. McCarthy, E.J. (1960) Basic Marketing: A Managerial Approach, Richard D. Irwin, Homewood, IL. Okumus, F. (2003). A framework to implement strategies in organizations, Journal of Management Decision, Vol. 41 Issue 9, pp.871-882. Roe, M. (2004) Marketing Research in Action. London: Thomson Learning. Smith, D. (2001) Inside Information: Making Sense of Marketing Data, Chichester: John Wiley & Sons. Veliyath, R., and Fitzgerald, E. (2000). Firm Capabilities, Business Strategies, Customer Preferences, and Hypercompetitive Arenas: The Sustainability of Competitive Advantages with Implications for Firm Competitiveness, Competitiveness Review, Vol. 10 Issue 1, pp.56-82. Wrigley, N. (2000). Strategic market behaviour in the internationalization of business, European Journal of Marketing, Vol. 34 Issue 8, pp.891-920. Read More