Principles and Practice of Marketing - Essay Example

Principles and Practice of Marketing An elementary probability random sampling method is choosing fundamental units in a way that each subject in the population has a level chance of inclusion. The sampling frame literally contains a list of students undertaking various courses in the institution. If sampling is with replacement, each subject of the student population will have similar probability of selection. The variance is small and subtle and needs a minor adjustment. Suppose in a class of 100 students, there 15 different Majors. The probability of selecting a Major is 15/100=3/20. Take for instance, there are 15 students undertaking a geography Major, the probability of being of selecting a student taking a geography Major is 15/100*1/15= 1/100 or 0.01 chance. Randomness of an event ensures no bias while probability involves the possibility of the Major inclusive in the sample. It depicts the position if confidence and not acting on conveniences. In general, it is difficult to generalize what has not been randomized. This method is free from bias. However, using a random number table to choose the students can be weighty. If the sample is to be carried out by a person with no statistical training, instructions get misinterpreted, and improper selections made. Section 2: Product Question 12: i) Idea generation: The production of tissue paper in exotic mills is a new engagement that began with developing and idea. New ideas involve conducting marketing research to determine the needs and wants of potential consumers. Suggestions from consumers and employees are invited. Suggestions for new-product ideas are obtained through brainstorming. New-product ideas are obtained from different markets both nationally and internationally. Feedback is also obtained from agents or dealers about toilet paper products offered by competitors, by studying the new products of the competitors. ii) Idea screening constituted undertaking studies of ideas carefully. Good ideas were selected while the fake ones are rejected. The basis of selection or rejection of the idea is informed by necessity of the toilet paper. The possibility of current plant and machinery to proliferate the new product. The confidence that the existing marketing network sells the new product and easily breaks even. Positive answers mean that the idea of a new-product development is selected, to avoid product failure. iii) The Idea screening concept testing was carried out later to find out the possibility of consumers understanding the product idea. Demand and acceptance of the product was also investigated. A small group of consumers was selected and provided with full information on the tissue paper product. Their perceptions, feelings and reactions on the product were obtained. Over 85% liked the product. iv) After establishing that a significant percentage preferred the product, commercial profitability was determined. It involved assessing the anticipated costs, demand, seasonality, competitors and expected level of projected sales. Also, investigated were profits, advertising and sales promotion expenses. The product was found to be profitable, thus accepted. v) At this point, the company made a decision to introduce the tissue paper into the market. All the steps to produce and distribute the toilet paper were evaluated. The production plans helped to generate the product. The marketing plans ensured level distribution of the product. The finance section availed finances for its introduction. The advertising and promotion planned the advertisements, but on a small scale to test the market. vi) The tissue paper product was introduced to a small market at a lower intensity. Currently, the product is being tested on the small market, and if found to have higher acceptance then large scale rolling will begin. Some changes were made as safety devices. The company is yet to roll out the product on a large scale. Step 7 will be revisited later. vii) The company reviewed motivation of marketing staff, changes in the marketing mix to adapt to environmental changes. Efforts of competitors were also evaluated and so was the performance, marketing plans and product strategies. Section 3: Pricing Question 16: A pricing adjustment meant to improve the level of sales is to provide discounted pricing when buyers purchase a range of products simultaneously. Bundle pricing helps complementary products to sell the main product. For purchasers, the ultimate cost of the buying indicates savings, as opposed to purchasing each item individually. For instance, a cake retailer can provide a discounted price when buyers purchase both cake and flowers that are reduced than if the items were bought separately. In this case, the retailer can promote the products as “Buy both cakes and flowers and save 20%.” Bundle pricing is applied by marketers as a procedure to avert making price adjustments on a principal product, for fear that engaging in it influences the product’s distinguished quality level. Rather, the marketer can decide to provide adjustments on other connected or complementary products. In the case above, the message reverts to: “Buy the cake and get the flowers for 40% less.” With this idea, the marketer is advancing an adjustment in price without the perception of it reducing the price of the principal product. Question 21: Markup is one of the concepts that render business owners scratchy. In order to compute a gross profit margin, the selling price needs to be determined. This may not be the case with markup. Therefore, it is significant to consider the markup formula (assume marking up arises from cost, and nothing else): Markup% = (Price ($) –Cost ($) /Cost ($) Hence Markup %= Gross Profit Margin ($) / Cost ($) The rationale behind the statement is that most business owners consider markup, when actually referring to the final ultimate price, or the value of dollar between the ultimate price and cost: Price ($) = Cost ($) + (Cost ($) * Markup %) Markup ($) = Price ($) – Cost ($) For instance, a lathe device may cost $20 to manufacture, and the normal wholesale markup is 30%. What is the dollar markup and price? Price ($) = $20 + ($20 * 0.4) = $20 + $8 = $28 Markup ($) = $28 – $8 = $20 Section 4: Channels of distribution Question 24: Growth into emerging markets is being supported heavily by the world top five. The top five are; Wal-Mart (US), Carrefour (France), Metro (Germany), Tesco (UK) and Kroger. They are jointly operational in about 70 countries globally and are currently getting positioned in the emerging markets especially China and India. Wal-Mart according to the Global Retail Bulletin, heads with a 6% portion of the world market, equivalent the four companies that follow in the top five categories. It has 8500 stores covering 15 countries. It operates as Wal-Mart in those countries. Second is Carrefour that leads in the Middle East, South America, and Western and Central European markets. It has 1395 hypermarkets globally. It withdrew it operations from the Czech Republic. Central Europe is rich avenues for growth for the top thirty. Tesco comes third being the UKs only company in the grocery chain of supermarkets. It is operational in 14 countries, spanning three continents. East Asia is a substantial market for the company. Metro AG is the fourth as Germany’s largest retailer in continental Europe. It has branches in Africa, Asia, and central Europe. It operates electronics, groceries and fashion. Kroger Company is the fifth and closest rival to American Wal-Mart. It has over 3700 store in the US with heavy presence in supermarket chains. Section 5: Promotion Question 34: In the just concluded 2012 US presidential elections, campaigns hit high season to both Obama and Romney camps. They jointly spent over a billion dollars on radio and television advertising. The total consisted of money used in both campaigns and external spending by the grand supporter, Super PAC. According to the analysis undertaken by NBC News in conjunction with Smart Media Group Delta, at least $512 million was used on campaign advertisements. This was about the same used on advertising in the whole 2008 Presidential election. Campaign advert expenses reached $2.9 billion at the close of by the end of that year. The advertisements increased the revenues of advertisers creating a list of new billionaires. Section 6: Consumer Behavior and Segmentation Question 41: Segmentation of retail stores assumes a range of approaches which helps to differentiate the clients and potential customers. The variables include; targeting demographics is vital when working with individuals with various fixed characteristics. The groupings consider people into categories of age, level of education, zip code, and size of family. Concerning retail businesses, however, demographic process comprise issues such as turnover, industry, goods or services sold, location, number of employees, and number of operational points. Benefits required is where some people carry out purchasing decisions in relation to price. In some other cases, issues such as customer support and expediency weigh more profoundly when considering decisions on specific purchase. Lifestyle preference involves people. Businesses have personalities, so marketing to a business with cutting-edge exciting culture and a unique message. This will be different from marketing the retail store product to a firm that valuing tradition and conservatism. The buying process may constitute one audience segment preferring to talk to a person at a time to purchase. Sales representatives can be contacted on the telephone or one on one visit. Some segment can desire to carry out online business. In case of reaching groups, unique marketing messages are expressed. Usage and needs help to segment customers through determination the diverse uses of the products. There should be something significant for business operations, innovation and fun. Works Cited Jobber, David. Principles and Practice of Marketing. New York: McGraw-Hill Education, 2012. Nwankwo, Sonny and Tunji Gbadamosi. Entrepreneurship Marketing:Principles and Practice of Sme Marketing. London: Taylor & Francis, 2011. Read More