Marketing Principles - Report Example

Lecturer: Task Individual Written Report Scenario: SleepWell is a growing family-owned business, located in West-end of London. SleepWell, being a family-owned business and a particularly small one, tends to be run informally, the way one might run the family. Together with its growth, the family has been advised to introduce a Marketing department. However, the owners seem reluctant and unconvinced about the benefits of such a function in the organisation. As a Marketing Consultant, write a report to convince the owners of the importance of including this function in their organisation. Your report must include the following: Q1Explain the various elements of the marketing process (AC 1.1) A marketing function at SleepWell can be significant in promoting the various elements of the marketing process that include product, price, place and promotion. Product is an important element for the business as it ensures customer satisfaction. Product differentiation ensures provides customers with a wide variety of items to satisfy their needs. It is also important to determine the right marketing mix of products that will attract various consumers. Price is the second important marketing element that focuses on setting prices that will enhance profitability and also ensure affordability of the products to consumers. This will help the business to attract and retain customers. Place involves enhancing the availability of the products to consumers. Strategies for distribution to ensure customers get a product when and where they need it are important for profitability. Promotion involves raising awareness regarding the product to new and existing consumers. It can increase sales as the business is able to inform customers the benefits of using the products. Q2. Evaluate the benefits and costs of marketing orientation for the selected organisation. Marketing orientation is beneficial to the business as products are developed with the customer needs in mind. It is aimed at satisfying customers and hence the business is guaranteed of attracting consumers (Porter, 1998). The business is likely to be successful as customers will be able to associate with the business due to its capacity to offer what they want. This strategy helps to offer the product at the right price because it is based on information acquired from customers and therefore they play a role in determining the way the product is sold. It helps to outdo competitors who may not understand consumer needs. SleepWell can enhance its competitiveness by conducting market research and offer products based on the information obtained from potential consumers. However, costs of market orientation may emerge as a result of constantly changing consumer needs. It is expensive to change the production strategy every time consumer needs change. Moreover, some products may become obsolete due to changes in consumer behaviour thereby leading to losses. Task 2. – Case Study Watch the following video: http://www.youtube.com/watch?feature=player_detailpage&v=RcRFBVIvJHw and prepare a report addressing the following: Q1. Show macro and micro environmental factors which influence McDonald’s marketing decisions. AC2.1 McDonald’s micro-environment comprises consumers with whom the organization maintains a close relationship striving to understand their needs. It also includes suppliers who are essential in ensuring the company’s capacity to deliver value to consumers. Competitors such as Wendys, Burger king are also an essential component that influences most marketing decisions as the company tries to deliver greater value and satisfaction than other organizations dealing in similar products. Intermediaries are useful in the marketing process as they enhance product availability to consumers. The macro-environmental factors include demographic factors that influence the number of consumers of the company’s products. The economic environment affects consumer buying behaviour. The company is promoting activities aimed at conserving the natural environment. Technological factors have helped to improve production while political environment is supportive of the business. Cultural environment also positively influences the company’s marketing strategy as more people are preferring fast foods and soft drinks offered at McDonald’s (Segmentation, Targeting, and Positioning - McDonalds). Q2. Propose segmentation criteria to be used for products in different markets for McDonald’s. AC2.2 The first segment comprises snack foods that will also be divided in to two sub-segments to cater for the needs of vegetarian and non-vegetarian consumers. Another segment comprises desserts that are targeted at the youth, children and young urban families that love ice-cream. Beverages will form the third segment with products that are suitable for various environmental conditions. These include soft drinks and hot beverages such as coffee and tea. Q3. Choose a targeting strategy for a selected product/service for McDonald’s. AC2.3 To maintain competitive advantage, the company can include in its menu a cholesterol free pizza as more consumers are becoming aware of the implications of high saturated fat and cholesterol containing diets such as McDonald’s ‘Big Mac’ pizza. A low cholesterol pizza can attract health conscious consumers and contribute to expansion of the company’s market segments. Q4. Demonstrate how buyer behaviour affects marketing activities in different buying situations at McDonald’s. AC2.4 McDonald’s significantly focuses on consumer behaviour in the various market segments to determine consistency in buying a particular product. Greater marketing efforts are made on the market segments that have been found to comprise consumers that are homogenous in their style of choosing and using products. Different market segments have unique needs that the organization targets to fulfil thereby enhancing its capacity to meet consumer desires. Greater value for consumers is achieved through development of products focused on meeting prevailing needs. Buyer behaviour changes depending on circumstances and the organization’s marketing strategies must be in a way that matches these changes. Q5. Propose new positioning for a selected product/service at McDonald’s. AC2.5 Positioning involves developing an image that consumers can associate the company with. It needs to help the company to achieve a competitive advantage by being viewed as different from competitors due to its unique position. McDonald’s can develop a new perspective among customers by positioning its products as healthy. Many consumers are concerned about their health and it would capture significant attention if the company began educating its present and potential consumers regarding the advantages of healthy eating habits and life styles. These messages can be included in the company’s promotional materials as well as on product packaging. Information should be provided to customers regarding the ingredients in the company’s products and their health benefits. Task 3. –Individual Written Report Select one national large business (large PLC or Ltd.) and prepare a report addressing the following: Q1. Explain how products are developed to sustain competitive advantage AC3.1 Starbucks is a multinational company in retail coffee market and has a significant competitive advantage over competitors such as Dunkin Donuts and McDonald’s. The company’s product development applies cost advantage whereby it is able to sell similar products with competitors at a lower cost. It also has a differentiation advantage whereby several value added products are offered at the same price as non-value added products by competitors in the same market thereby attracting more customers (Porter, 1998). Q2. Explain how distribution is arranged to provide customer convenience. AC3.2 Distribution at Starbucks is an important marketing strategy that enhances product availability to customers through many retail outlets. These are used for market planning through consumer feedbacks and direct communication, promotions through offers, discounts and advertisements, matching consumer needs with the offers, selling and delivery of products to consumers. Direct marketing is applied in product distribution through retail stores, restaurants and supermarkets. It also partners with companies such as Omnicom to enhance its distribution strategy. Q3. Explain how prices are set to reflect an organisation’s objectives and market conditions. AC3.3 Starbucks applies value based pricing strategy whereby premium prices are associated with high quality thereby attracting consumers who are concerned about quality. It is used for profit maximization whereby prices and product return are set at a level that gives the company maximal profits. The prices also vary between various states in the US depending on the standards of living, with the coffee fetching the highest price in New York. The pricing strategy is based on consumer research to establish the price they are willing and able to pay at any particular time. Q4. Illustrate how promotional activity is integrated to achieve marketing objectives. AC3.4 Starbucks mainly applies push strategy whereby it is mainly focused on dynamic engagement of consumers through direct marketing. This is accomplished through direct marketing strategies that enhance awareness creation of products among consumers. The company advertises energetically through charitable activities, internet marketing and sponsorship of public events that generate the urge for consumers to seek the product. The pull strategy is also applied through promotion of retailers and wholesalers to facilitate movement of products to consumers who are actively looking for the product (Magretta, 2011). Q5. Analyse the additional elements of the extended marketing mix. AC3.5 Starbucks amalgamates different marketing undertakings to enhance consumer satisfaction. Physical evidence in the company involves generating confidence among consumers by demonstrating that the company’s products are developed through hygienic and safe conditions. Packaging and arrangement in supermarket stores are neat and attractive to consumers. People are valued significantly and this is demonstrated through high level customer service at restaurants, company call centre as well as website. Various processes are in place to enhance marketing, such as customer complaint handling and order processing. Task 4. –Individual Written Report Scenario As a newly appointed Marketing Manager for a large UK college with campuses all over the world, you were asked to prepare a report addressing the following: Q1. Plan marketing mixes for two different segments in consumer markets AC4.1(125) Market segmentation is aimed at satisfying different consumer needs by grouping them together and offering appropriate products to each consumer group. The consumers of the college products are students pursuing higher education. There are those students who are engaged in full time work and therefore can only study part time and these form the first segment. The second segment comprises students who wish to study full time. The part time segment will have an option for evening and morning classes before and after normal working hours. This strategy will allow the college to serve the different consumer needs and will also give it a competitive advantage over competitors who only offer classes to mainstream regular students. Q2. Illustrate differences in marketing products and services to businesses rather than consumers. AC4.2 Business marketing is the process whereby products and services sold to other businesses that need to re-sell them for a profit or to sell them together with their own products. Other businesses use the products in their production processes (Magretta, 2011). For example, the college is a consumer of Microsoft products that are used to facilitate learning and information management. Microsoft as a business therefore markets its products to another business in large quantities. Marketing to consumers involves selling the product to individual consumers who do not re-sell or use them to produce other products. For example, the college sells its education services to students for their own consumption. Microsoft also sells its products directly to individual consumers for their personal computers. Q3. Show how and why international marketing differs from domestic marketing. AC4.3 The report should be based on the example of the college that you are currently employed at. Domestic marketing is whereby a company markets its products in the home country. For example, the college offers various programs to students from within the country. In this case there are no students from other countries. International marketing on the other hand involves selling to consumers across political boundaries (Magretta, 2011). Students from different nationalities are admitted to the college programs either to come and study in the country or to study in their own countries through international campuses owned by the college. The prices in different campuses are influenced by the various economies where they are established. The education programs are also influenced by local needs in the different countries. However, the quality of education is the same in both domestic and international campuses. References Magretta, J. 2011. Understanding Michael Porter: The Essential Guide to Competition and Strategy, Harvard: Harvard Business Review Press. Porter, M. 1998. Competitive Advantage: Creating and Sustaining Superior Performance, Massachusetts: Free Press. Segmentation, Targeting, and Positioning - McDonalds, available at< http://www.youtube.com/watch?feature=player_detailpage&v=RcRFBVIvJHw> [Accessed 29th April 2014] Read More