The Various Elements of the Marketing Process - Assignment Example

Marketing Principles Table of Contents Task Individual Written Report 3 Q Explanation of the Various Elements of the Marketing Process 3 Q 2 Evaluation of the Benefits and Costs of Marketing Orientation for SleepWell 5 Task 2.-– Case Study 7 Q1 Macro and Micro Environmental Factors Which Influence McDonald’s Marketing Decisions 7 Q 2 Segmentation Criteria for Products in Different Markets for McDonald’s 9 Q3 Targeting Strategy for a Selected Product/Service for McDonald’s 10 Q 4 Buyer Behaviour Affects Marketing Activities in Different Buying Situations at McDonald’s 11 Q 5 New Positioning for a Selected Product/Service at McDonald’s 12 Task 4. -- Individual Written Report 13 Q1 Marketing Mixes Plan for Two Different Segments in Consumer Markets 13 Q2 Differences in Marketing Products and Services to Businesses Rather Than Consumers 14 Q 3 How and Why International Marketing Differs From Domestic Marketing 14 References 16 Task 1. – Individual Written Report Q 1 Explanation of the Various Elements of the Marketing Process In the present business scenario, business organisations are identified to face intense competition owing to different factors that include increased number of competitors and availability of identical products and/or services at the market place. In this regard, business organisations are required to conduit business operations with effective marketing activities with the aim of achieving sustainable business performances. Subsequently, SleepWell with the development of marketing department will be able to conduct business operations in a better informative manner. SleepWell is a family-owned business with better growth facilities and in this regard, the company with the assistance of marketing activities will be able to anticipate, recognise as well as satisfy the needs of the customers effectively. Marketing is identified as a process on the basis of which planning should be made relative to product, price and promotion among others should be executed with the intention of accomplishing business objectives. Contextually, the company is required to adopt marketing process with the aim of ascertaining that business operations are conducted in accordance with the values of customers (Sigurosson, 2011). The marketing process is based on four factors which are described below. Scanning the Marketing Environment SleepWell conducting an in depth analysis of the market conditions will be facilitated with the opportunity of having comprehensive understanding about the market conditions in relation to preferences of customers, competition and prices of products and/or services. Accordingly, the company will be able to ascertain prices along with products demanded in the market segments. Moreover, analysing the market environment will also aid in having a comprehensive understanding of the behaviour of the customers. In this respect, the company will be able to provide products and/or services in accordance with the needs and preferences of customers (Sigurosson, 2011; Elsevier, n.d.). Marketing Strategy The company possessing adequate market information will be able to formulate as well as implement effective strategies in accordance with which business operations might be conducted competitively. In this regard, the company will be able to determine the specific market segments for offering its products. Additionally, the company will ascertain the target customers and its position in the market segment. In this context, the company will be able to devise appropriate marketing strategies with the assistance of which the company can achieve sustainable performance. Subsequently, the company will be able to develop an effective marketing plan which would facilitate in attracting large customers towards its products and thereby increase its overall revenue generation capability (Sigurosson, 2011; Jones & Bartlett, LLC, 2010). Marketing Tactics The marketing tactics of the company will be to develop an efficient marketing mix in relation to four P’s which include product, price, promotion and place. In this regard, the company should be able to ensure that the products and/or services are innovative and are offered in accordance with the requirements of the customers. Accordingly, determining appropriate pricing policy by the company will aid it is attaining greater competitive tractions. Devising adequate promotional activities would facilitate in creating better awareness amid customers about products’ values and features. Moreover, selection of appropriate distribution channel will ensure its customers to obtain products and/or services through appropriate market places (Sigurosson, 2011; The Chartered Institute of Marketing, 2009). Monitoring and Control Monitoring and control operations will aid the company in monitoring the operations of company, so that effective decisions can be made with the aim of ensuring that marketing operations are conducted successfully. The monitoring process will aid in having an efficient control over the business operations. Respectively, the monitoring process will also assist the company in formulating appropriate planning with the assistance of which business operations might be conducted systematically (Sigurosson, 2011). In this regard, the elements of marketing process can assists in formulating effective planning based on which effective marketing plans are developed. Marketing plan will aid the company in formulating efficient marketing strategies, so that business operations are conducted in accordance with market demands and market conditions. Q 2 Evaluation of the Benefits and Costs of Marketing Orientation for SleepWell SleepWell adopting market orientation will be facilitated with the opportunity of possessing extensive information in relation to the preferences as well as needs of the customers. Moreover, the company will be able to obtain important facts about the capabilities of competitors and their marketing strategies. In this regard, the company with the assistance of the market information will be facilitated with the opportunity of making effective marketing decisions along with plans on the basis of which marketing operations can be conducted successfully. Subsequently, marketing orientations will aid the company in obtaining information in relation to customers along with competitors (Slater & Narver, 2000). Furthermore, SleepWell based on the market information will be able to formulate appropriate policies and tactics on the basis of which the customers will be offered with better value added products and/or services. The company with the assistance of market orientation will be able to response to the needs of the customers in an effective manner. Additionally, market orientation will also assist the company in providing products and/or services in accordance with customers’ preferences on a timely manner. In this respect, the company will be able to conduct business operations with better competitive advantages and sustainable manner (Slater & Narver, 2000). Market orientation will also assist SleepWell in developing business processes by adopting a working culture of innovation and experimentation. In this regard, the company will be able to produce products and/or services in the accordance with the present as well as future needs of the customers. Correspondingly, the company with the assistance of market orientation will be facilitated with the opportunity of conducting business operations with better business and products’ values (Slater & Narver, 2000). Market orientation is based on certain cost due to the investments that are to be made on marketing researches. Additionally, the company is also required to adopt innovative technological infrastructure with the aim of collecting as well as analysing market information efficiently. Training should be provided to market researchers, so that market information is collected in an effective manner. The company is also required to make adequate investments in producing products in alignment with the changing preferences of customers. In this respect, the company is required to make adequate investments in order to obtain the benefits of market orientation of performing business operations sustainably and competitively (Kokemuller, 2014; Slater & Narver, 2000). Consequently, it can be signified that market orientation will aid the company in performing business operations in accordance with market demands. Task 2.-– Case Study Q1 Macro and Micro Environmental Factors Which Influence McDonald’s Marketing Decisions McDonald’s is one of the most prominent brands worldwide due to its continuous expansion, high standards and superior performance in the ever changing business environment. For the decision process to be effective in the competitive world there are number of factors including both external and internal that influences decision process. Macro environment factors have significant effect on the business and on the related decision making process as compared to the micro environment. Micro environment factors are the internal aspects of the business which affect the business in creating value and building relationship with the customer. The factors affecting the business decision in the micro environments are evaluated to get better understanding. Suppliers are the most important aspect of the business and the supply chain management system. They deliver value to the McDonalds and their customers. The suppliers have the power to influence the marketing decision at large as the raw material is the key ingredients of McDonald’s success. Thus, it is important to manage the supplier availability and their related cost. It is observed that any misconduct, delay and unethical conduct on the part of its supplier can hamper the company image and destroy the level of satisfaction of the customer. Moreover, the rise in the supply cost can also affect the sales and the marketing decision. Intermediaries have a strong role to play in the marketing decision of McDonalds. They are the one who promotes, distribute and sells the products to the end customer. The intermediaries involve the retailers, franchisees and the financial intermediaries who affect the process of decision in marketing. Thus, the relevance of the intermediaries is felt by the McDonalds as they act as a channel for selling their products. On further note, it is observed that competitors play a major role in the decision making process. The competition from the competitor is one of the major factor influencing the strategy and the decision making process. Concerning marketing strategy, McDonalds offers greater satisfaction to the customer than its competitors through its quality services and food items. The customer-centred strategy of the company have promoted in creating a strong image of the company in the minds of its customer. Customer is one of the most significant factors of the micro environment which affects the marketing decision at large. The objective of the marketing strategies is to capture greater market share and provide products and services according to the customer’s need and preferences. The preferences of the customers should be valued for better result and output. The objective of the total evaluation of the micro environment is to provide better service to the customers and gain the competitive advantage (Sage Publication, 2013). Moreover, the macro factors that affect the decision making process of the McDonald’s can be evaluated through the PEST analysis. McDonald’s have its global presence and hence the political, economic factors along with technological factors affect the decision process to a large. Different political factors of various countries impact the performance and decision of McDonald’s. Government have different laws, rules and regulations which should be adhere by McDonalds while formulating its marketing strategies. Profitability is the major aim of McDonalds and hence the economic factor influences the decision process. In this regard, economic factors such as inflation, income of the people and exchange rate have significant impact on the marketing decisions of McDonald’s. It is important for McDonald’s to understand the social cultural aspect of the country to have better business. The cultures of the countries are different and so their demand varies. Therefore, it is important for the business to strategize its policies as per the socio cultural aspects. This factor is of importance to enhance customer relationship by valuing the cultural heritage of the country. Technology impacts the business of McDonald’s as it influences the inventory system and the promotional aspects through the use of internet. McDonald’s uses internet in order to create a strong competitive advantage. Hence the technological factors affect the business for logistics support (Gupta, 2012). Q 2 Segmentation Criteria for Products in Different Markets for McDonald’s Market segmentation is a procedure of segregating consumers into small groups of prospective buyers with similar characteristics. This is vital in order to get a clear understanding regarding the customer needs and to meet the customer demand successfully. In this regard it can be stated that the market segmentation is complex as it must consider the local along with global market. In order to have a strong marketing strategy it is important for McDonald’s to understand their target customer and their needs. Segmentation aids in understanding the customer better for more effective communication in the market. McDonalds can segment their offerings on the basis of demographic, behavioural and psychographic grounds in order to position its product in the market (McDonald, 2012). Demographic Segmentation- McDonalds can offer various products for different age group. For achieving the goal of demographic segmentation, it should consider certain criteria such as age, income, gender, ethnicity and social class. Based on these criterion, it can devise is marketing strategy. Currently, McDonald’s is seen to be executing the strategy of ‘Happy Meals’ for the kids this strategy has been effective in attracting the kids. Besides, it has been engaged in offering McDonalds cheeseburger at a low cost which has been successful in attracting the low income people. Moreover, for the families they have stores and meals which provide the takeaways and the drive-thru benefits (Wgu.edu, 2012). Behavioural Segmentation- This segmentation provides benefits to the people through their offerings. This segmentation divides the consumers on the basis of their behaviour, the way they respond to the product. In this regard, McDonald’s is required to consider behaviour of customers and seasonal factors. For instance, few consumers buy McDonalds products during occasions such as birthdays and few on regular basis. The segmentation based on behaviour can help McDonald’s to strategize decision to retain the loyal customer and gain new customer (Wgu.edu, 2012). Psychographic Segmentation- McDonald’s can adopts itself as per the lifestyle of the people and their preferences to get more market share. It is important to understand the interests, options, values and attitude of the consumers regarding the products. For Instance McDonalds comes up with innovative product line as per taste of the people. Introduction of McAloo Tikki Burger can be attributed as marketing strategy of based on psychographic segmentation (Wgu.edu, 2012). Q3 Targeting Strategy for a Selected Product/Service for McDonald’s McDonald’s objective is to provide an environment which is pleasant and enjoyable for every individual irrespective of the age and gender. Children form a strong target group of McDonald’s. The strategy such as the ‘Happy Meal’ is targeted towards the kids. In order to increase more customer base McDonalds can use the promotional strategy of advertising their products by the kids to attract the target audience. Moreover, to reach wide range of customers particularly the kids and to promote the health and safety of the kids McDonald’s can highlight the ingredients of the Happy Meals to attract the attention of the parents. Packaging is another vital aspect which draws the attention of the kids and helps in increasing the consumption level. Therefore, packaging should be made attractive with quality and other additional features to make it more lucrative for the target market. Price is one of the most significant aspects for the product to succeed along with the quality. Thus, in order to succeed globally Happy Meal should have proper pricing strategy keeping in view the kids as the target. McDonalds offers value pricing along with bundler strategy for the Happy Meal as a targeting strategy. Hence, the marketing P’s should be considered before implementing the target strategy for a product in order to be successful (McDonald’s Corporation, 2008). Q 4 Buyer Behaviour Affects Marketing Activities in Different Buying Situations at McDonald’s Consumer behaviour is one of the important considerations for the success of the organisation as it helps in strategizing the marketing plans. Contextually, the marketing activities of McDonald’s are influenced by the buying behaviour of the customers on the basis of cultural, social, situational and the psychological factors. McDonald’s have limited width and depth of their products globally in order to meet the demand of the consumer as per their behavioural aspects. The buyer behaviour is an influential factor which affects the strategy of McDonalds. This can be evaluated through the use of the example wherein the cultural aspect of the people of the Asian country such as India and Pakistan made McDonalds change their product differentiation strategy. In this regard it can be stated that as per the religious norms beef products of McDonalds were replaced by the chicken products in order to meet the needs of the consumers. The buying behaviour is based on the internal along with external factors. According to the psychological factor the image of the product in the minds of the people influences the buying decision. For instance the healthy meal package with lower price by the McDonalds influences the buying behaviour. The behaviour of the consumer of getting two meals for one price helps in formulating strategy for providing innovative products. Advertisement influences the buying behaviour of the people as it creates an image in their minds (Deng, 2009). The buying decision is also based on the low involvement purchase decision wherein people have low risk regarding the product. Q 5 New Positioning for a Selected Product/Service at McDonald’s Positioning is a concept wherein the product creates a distinctive and desirable image in the minds of the target customers. Positioning is important to influence the customers purchase decisions. The product to be positioned by McDonald’s is the Big Mac hamburger in order to increase its sales and desirability worldwide. The product is double layered with pure beef content which makes it famous in the America. However, in order to position the product in other regions McDonalds can create differentiation in the product by highlighting the attributes of the products as per the cultural aspect of the country. The product can be made into triple layered with more salads, cheese and toppings on it to make it lucrative. Moreover, the core ingredients of beef can be replaced with chicken for the customers of the Asian regions especially India. This will help the product to get more market on the basis of the product attribute. Positioning can also be done against the competitor approach wherein the Big Mac exhibits its product superiority than other competitors (On the Mark, 2005). The first dotage of the product positioning by McDonald’s was to identify the target market, demonstrating the features of the products, the unique selling proposition was demonstrated that is its layers and extra salad at the same price along with building the brand in a better way. Task 4. -- Individual Written Report Q1 Marketing Mixes Plan for Two Different Segments in Consumer Markets Marketing segmentation is of importance in the consumer market in order to derive better outcome. The marketing mix plan would focus on two consumer market segmentation. Geographic segmentation is one aspect wherein the product can gain its importance in the local market as compared to other region. In this regard the courses offered in London might require some changes during the expansion in the international market as per the need of the people and the geographic dimension. The promotional and the pricing strategy would depend on the demand and requirement of the products among the customers i.e. the students. It is important for the marketing manager to place the right product, in the right place and at the right time to derive benefit and popularity for the college. The marketing strategy is formulated on the basis of the geographic segmentation and their demand for the product. Plans are formulated to strategize policies to promote the college through the use of advertisements and sponsorship to reach wider audience. The public relation activities should be conducted in front of the people to get better response in to geographic segmentation other than domestic. Another segmentation that the marketing manager should focus upon is the behavioural segmentation. The behaviour segmentation divides the people into various groups depending on which the strategies are formulated for better outcome for the college. The attitude of the people towards the products helps in formulating the future plans. The demand and the urge of the people for the London College is another aspect. The response of the product can be recognised by evaluating the rate of response or the usage rate of the products. The marketing manager needs to understand the needs of the customer through evaluating their behaviour for delivering better service quality. The behaviour segmentation is important for the marketing manager in order to establish a strong marketing strategy to get better results and growth for the college in the global platform (Business Studies Online, n.d.). Q2 Differences in Marketing Products and Services to Businesses Rather Than Consumers Marketing products and services to businesses significantly differs from the marketing of products and services to consumers. The business to business market values customer relation than the consumer market. In B2B marketing the target customers are the members of other business process and in B2C the target customers are the common public. There are few differences between the marketing to businesses along with the consumers. In terms of B2C marketing customers are large in number and every individual have equal opportunity. In the B2B marketing there are few large customers with more effectiveness. In the B2C the manager does not meet the customers’ directly for the promotion of the service. However, in B2B the promotion, marketing or sales of the services are conducted directly. The offerings are the same for every consumer and the element of service is low as compared to the business wherein the services are customised and highly valued. In B2B, the marketing is done through professional aspects with the help of tenders and negotiation while in the case of B2C marketing advertisement and promotional tools plays a vital role. The value derived is high in B2B marketing than in B2C and hence the marketing manager tends to focus more on building strong relation. In B2B the knowledge regarding the customer is more due to increased level of personal contacts. Moreover, the quality is of importance for the B2B marketing with strategic flexibility in the relationship setting (Dobney, 2013). Q 3 How and Why International Marketing Differs From Domestic Marketing As a newly appointed marketing Manager of the London School of Business & Finance it is the responsibility of the manager to acquire considerable understanding regarding the differences in international and domestic marketing for devising effective marketing strategies. International marketing refers to the activities which allow the transfer of the goods and services to other international borders. However, domestic marketing refers to the activities which allow the transfer of services within the boundary of the country. Moreover, domestic marketing faces less legal restrictions from the government whereas for the international marketing various tariff and non-tariff barriers are faced by the colleges. In addition, in case of domestic marketing the government interference is minimal as helps in expansion. On the other hand, government interference is more in case of international marketing, all the activities regarding marketing takes place under the rules and regulations of the government. Culture is not a major factor for the domestic marketing as it known to the marketing managers, but in case of international marketing it accord significant position. Due to the diversity in culture pertaining to international market, different perspectives are taken into consideration before strategizing the marketing activities. In the domestic marketing the competition is not intense as the manager is aware of the competitors but in international marketing competition can be observed to be intense. Moreover, domestic trade will require no documentation and international trade will require high documentation for the marketing to be effective and legitimate. The risk faced by the manager in the international marketing due to the political, foreign exchange and bad debt risk would be high. However, the risk in the domestic market would be less and known by the manger. The finances required are high for international marketing as compared to the domestic as the environment is known and the resource availability would be easier (Bachelor of Management Studies, 2013). References Business Studies Online, No Date. Market Segmentation. Theory Notes, pp. 1-22. Bachelor of Management Studies, 2013. Difference between International and Domestic Marketing. Home. [Online] Available at: http://www.bms.co.in/difference-between-international-and-domestic-marketing/ [Accessed April 25, 2014]. Deng, T., 2009. McDonald’s New Communication Strategy on Changing Attitudes and Lifestyle. International Journal of Marketing Studies, Vol.1, No. 1, pp. 37-42. Dobney, 2013. Focus Area - Business Markets. Strategies. [Online] Available at: http://www.dobney.com/Strategies/business_markets.htm [Accessed April 25, 2014]. Elsevier, No Date. Understanding the Marketing Process. Chapter 1. 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