Marketing for Gaining Competitive Advantage and Providing Customer Convenience - Assignment Example

MARKETING PRINCIPLES Table of Contents Table of Contents 2 Task 3 1 Various Elements of Marketing: 3 2 Benefits and costs of marketing orientation for SleepWell: 4 Task 3: 5 3.1 Product development for gaining competitive advantage: 5 3.2 Arranging distribution for providing customer convenience: 6 3.3 Pricing in order to fulfil organisational needs and meet market conditions: 6 3.4 Integration of promotional activities for achieving marketing objectives: 7 3.5 Additional elements of extended marketing mix: 8 Task 4: 9 4.1 Marketing Mixes for two different segments of consumer segments: 9 4.2 Differences in marketing products and services to consumers and businesses: 11 4.3 Difference between international and domestic marketing: 11 Reference List 13 Task 1: 1.1 Various Elements of Marketing: Marketing elements influencing the business process has been best provided in the model of marketing mix. The following section will analyse the influence of marketing mix if implemented in SleepWell: Price: Pricing process of a product relies on the comparison of the cost incurred for production and the market demand. In order to enhance the competiveness of the products and services of SleepWell, they can analyse the market price of the product. Furthermore, the production expenses can be managed in accordance with the market analysis for reducing the operational expenses and develop better profit margins (Bradley, 2008). Place: Place in marketing mix signifies the selection of appropriate markets for operation of business (Cant, 2009). SleepWell is a growing firm in the west London area, with the help of proper market analysis; they can identify other potential markets for their products and services. Selection of appropriate place will contribute in enhancing the scope of business growth. Promotion: The promotional practices of a firm help in reflecting the brand presence to the existing and potential customers. The promotional activities will help SleepWell in communicating with its customers and develop a long-term relationship with the brand. The promotional activities can be carried out via online or traditional means such as social media marketing, newspaper ads, leaflet distributions, etc (Bradley, 2008). Product: The products and services of a firm are developed on the basis of the market demand. The consumer needs and requirements must be associated with the products and services of a firm for ensuring the longevity of the product in the market (Adcock, 2010). Gathering market information for product development and design will help SleepWell to meet the customer expectations and sustain in the competitive market environment. 1.2 Benefits and costs of marketing orientation for SleepWell: According to Farahmand (2011), market orientation is the process of identifying the needs and requirements of the consumers and fulfilling them. The process of market orientation has evolved over the years. Bradley (2008) stated customer needs have become more diversified with the increasing availability of alternate products and services in the market. Cant (2009) added that the primary factor behind changes in the consumer wants is the fluctuating consumer behaviour. Marketing process of a business helps in developing suitable consumer relations which help in gathering information regarding consumer expectations. On the other hand, Adcock (2010) opined that in the contemporary scenario consumer needs are created rather than being identified. For instance, Apple Inc. does not involve in market research and focus on creating new products and services that would be appreciated by their consumers (Farahmand, 2011). However, considering the position of SleepWell as a growing business unit, it can be stated that creating products and services in accordance with the consumer needs will be more beneficial. The costs associated with the process of marketing are mostly related to the market research and analysis process. SleepWell will have to conduct market surveys for collecting information from their target consumers. The surveys if conducted online via e-mail or third party agencies will be cheaper in comparison to face-to-face surveys. This can be treated as an additional marketing expenditure of the firm but will also be beneficial for them in the long run. Task 3: 3.1 Product development for gaining competitive advantage: Gaining competitive advantage is one of the primary motives of the business firms. It helps the business to stand out amongst the tough competition and reflect their brand to their stakeholders (Barker and Chitty, 2009). One of the most successful examples of product development for gaining competitive advantage in the contemporary scenario is being presented by high street fashion designer and retailer H&M. H&M is among the top brands in the UK and European fashion industry, they have focused on developing their products based on the market trends (H&M, 2014). Unlike other top retailers such as Zaara who focus on trend setting rather than trend following, H&M has carved out a safer passage for them (Marketing Magazine, 2013). They communicate with their consumers in order to identify their needs, choice of clothes, changing taste and their affordability. .These information helps the company to structure their production process and other operational functions in manner that meets the consumer needs and also helps the organisation in creating profitable scenarios. The process of product design and development in H&M begins with the market research where the consumer information is gathered. The analysis of the market data helps H&M to identify the products that will sustain in the market and attract larger volumes of customers (Marketing Magazine, 2013). After the final selection of the product process, H&M focuses on designing the manufacturing process that includes selection of suppliers, inbound and outbound logistics, manufacturing process, product showcasing, etc (H&M, 2014). All these functions are conducted to control the cost of production and enhance the profit margin of the business. Meeting consumer expectations within their affordability helps H&M fulfil both consumer and organisational needs and hence develop a sustainable competitive advantage. 3.2 Arranging distribution for providing customer convenience: The distribution network of a business is essential in order to ensure the delivery of the right product at the right time to the right consumers. Distribution process of the products mainly depends upon the availability of the transport means and the consumer preferred market places (Schulze, Skiera and Wiesel, 2012). However, with the growth in technology, now buyers can sell their products to distant places with the help of internet shopping. Boone and Kurtz (2012) stated that distribution capability of a firm depends upon the market selection and the selection of the production units. For instance, the production units of H&M have been developed both in domestic and foreign countries based on the expenses of manufacturing (Forbes, 2012). Most of the time the products are transported based on the market demand (Forbes, 2012). This allows H&M to select the most suitable source of transport for their products. On the other hand, the presence of the brand near the consumer inhibited regions, is essential for providing consumer confidence. In the year 2009, H&M started creating contracts with local courier agencies for delivering their products to the customers (Forbes, 2012). Because of their niche, customer segment targeting the volume of consumers is low and hence H&M, focuses on enhancing satisfaction by improving the efficacy of their service process. 3.3 Pricing in order to fulfil organisational needs and meet market conditions: The pricing process of a firm not only focuses on revenue generation but also reflects its market compatibility in context of the market conditions. Decision making process related to the price of a product or service depends upon numerous factors such as the pricing style to be adopted, the purchasing power of the consumers, product alternatives available in the market, etc. Boone and Kurtz (2012) opined that pricing process of a firm also depends on the existing brand value where price is one of the parameters for measuring overall brand equity and quality of the product. In case of H&M, their pricing is mainly focused on the niche consumer segments. The pricing in H&M is premium however, considering the niche segment customers and other competitors the price level is in accordance with the market standard. Lim and Lusch (2011) emphasised that the organisational needs and market conditions of a particular industry needs to be aligned for achieving them with a singular pricing strategy, however, when the organisational needs and market demands differ, the pricing process varies according to individual product groups offered. Boulding et al. (2010) considered that decision making of prices depends on analysis of factors that cannot be within the control of a firm such as consumer buying power. Considering H&M, they operate in the high street fashion segment where brand loyalty is high and the consumer demands mostly based on a particular trend. The H&M pricing technique focuses on maintaining the premium price illusion for the customers while competing with other high street brands and in the process they fulfil their organisation and consumer needs. 3.4 Integration of promotional activities for achieving marketing objectives: Barker and Chitty (2009) observed that the promotional activities of a firm can help in relating the consumer needs with the organisational objectives. The promotional process of business houses have changed with the growth in usage of internet and technological resource development. Online promotional activities and direct communication channels with the stakeholders are now extensively being used for marketing promotion. Boone and Kurtz (2012) noted that the promotional activities are now considered as a process for business promotion, brand development, consumer communication, etc. In order to design and develop an effective promotional strategy, firms need to clarify their objectives and requirements (Boulding et al. 2010). For instance, the promotional activities of Nike are designed for promoting sports and athletes rather than the products. They try to connect with their customers by highlighting the core values and develop a psychological advantage in buyer-seller relationship (Schulze, Skiera and Wiesel, 2012). However, Boone and Kurtz (2012) explained that integrating the promotional activities for achieving marketing success is a common phenomenon in the contemporary situation. Business organisations are trying to amalgamate the PR and the promotional activities for developing a transparent business scenario. Lim and Lusch (2011) opined that focus of the corporate sector has shifted from profit building to sustainable profit generation with mutual growth. For instance, the promotional activities of H&M mostly revolve around their models rather than the products, in other words, celebrity endorsements are the key promotional process. Moreover, super bowls and fashion show sponsoring are other activities that promote the products and also act as a positive public relations for the company. The integration of the promotional activities in H&M is mainly focused on reflecting the thinking of the firm for fulfilling the consumer needs. 3.5 Additional elements of extended marketing mix: The extended marketing mix consists of three additional elements namely process, people and physical evidence. The new elements of the marketing mix mainly focus on the internal factors that contribute in the marketing process of the firm. Lindgreen and Finn (2010) defined that process is the method of delivering a product or service to the desired consumers. Lindgreen and Finn (2010) also stated that the extended elements of the marketing mix mainly focus on service marketing. However, scholars such as Boulding et al. (2010) and Barker and Chitty (2009) believe that the additional variables can be implemented for product as well as service marketing. Process focuses on reflecting the business process and its operational functions to the customers; it ensures that the consumers are informed of the business growth and its objectives. Boone and Kurtz (2012) stated that people consists of all the individuals related to the business, they can be consumers, competitors, employees, potential buyers, etc. Schulze, Skiera and Wiesel (2012) added that people can be more easily defined as the overall stakeholder groups of the company. The influence of each group of people helps the business in identifying the roles of these groups and develops effective marketing strategies for managing them. Finally, physical evidence has been defined as the process of developing confidence among the consumers regarding the use of a service (Bradley, 2008). Boulding et al. (2010) stated that service marketing can be risky as customers are not aware of the benefits of the service until it is being used. The intangible nature of service can develop sceptic decisions among the consumers (Cant, 2009). The primary aim of physical evidence is to develop confidence among the customers and build a trustworthy relationship among the buyers and the sellers. Task 4: 4.1 Marketing Mixes for two different segments of consumer segments: Considering the target market of the college, the consumer groups will primarily consists of different levels of students. Thus, the marketing mix will be developed on consumer groups of graduation students for Commerce and Mass Communication streams: Products: The course ingredients for both the market segments will have to include the traditional as well as the modern study materials. The standard of the courses should be aligned with the international education level for enhancing the service scope of the institution. For instance, commerce includes subjects of business management, finance, accounting, corporate law, taxes, etc. On the other hand, Mass Communication includes online, print and satellite media, aspects such as public relations, promotional activities of business are also included in the mass communication studies. Specialised professional courses will also contribute in enhancing service efficacy. Place: Being one of the most reputed colleges in UK, the place for service delivery should include both offline and online modes. Distant education will help the college to enlarge their service delivery process. Commerce and mass communication students availing distinct education services should also have the opportunity to appear in practical tests that will enhance their field experience. Meanwhile, establishing educational institutions in the major cities will help in developing a better service delivery process. Price: The price of the courses will depend on the industry standards and the cost of services being offered (CIM, 2009). New aspects are being added in both commerce and mass communication subjects, an additional price will be charged based on the selection of the specialised courses. However, the college has to consider the price of services being offered by other educational institutions around the block which can attract their potential consumers. Discount offers can be added in the fees based on the performance of the students; this will help in developing the quality of service delivery process while reducing the expenses of the students. Promotion: The promotional activities of the college will mainly focus on integration of PR in the marketing process (CIM, 2009). In order to attract the students of both the consumer segments, the college can reflect their past performance and the placements of their previous students in esteemed organisations all over the world. This will also act as the physical evidence for measuring the service quality. Apart from these, leaflet distributions and banner ads near high schools will help in attracting domestic students. For attracting foreign students the college can use online promotional techniques such as SEO or social media marketing. 4.2 Differences in marketing products and services to consumers and businesses: Barker and Chitty (2009) stated that while marketing to a B2B firm, the focus is mostly on the judgment of the products by the consumers and while in B2C the focus is on the benefits provided by the products and services to the consumers. Boone and Kurtz (2012) added that in B2B marketing personal emotions and attachments are not involved in the purchase decisions unlike B2C marketing where the purchase decision is majorly influenced by the personal choices of the customers. B2B consumers acknowledge proper and specific information in relation to the products and services, while B2C customers mostly avoid marketing messages and buying decisions is based on the appeal of the products or services (Bradley, 2008). Cant (2009) noticed that B2B consumers focus on the long-term benefits of the products and services and a permanent solution for their needs while B2C consumers are more interested in the temporary benefits and anticipate the modification in the products and services by the service providers. 4.3 Difference between international and domestic marketing: Domestic marketing is the process of catering the products and services to consumers within the geographical boundaries of a nation while in international marketing delivery of the products and services are not bounded by any geographical or political boundaries. Boone and Kurtz (2012) stated that in domestic marketing mostly the diversity in the consumer groups are limited which allows the business houses to develop a singular marketing concept for the entire consumer base. On the other hand, in international marketing the product needs and services are more diversified which urges the firms to develop marketing needs based on the consumer requirements (Cant, 2009). The competition level in the international markets can be more active and complex in comparison to the domestic markets. Boulding et al. (2010) observed that operating internationally, the legal and political influence on the business is more in comparison to the domestic marketing process where the legal frameworks are made by the central government of the nation. Apart from these, factors such as logistics, technology, cultural barriers and media also operate diversely in national and international segments creating diversified needs for the marketing processes of the firm. Reference List Adcock, D. 2010. Marketing: Principles and practice. 4th ed. London, Thousand Oaks CA: Sage Publication. Barker, N., and Chitty, W., 2009. Integrated Marketing Communications Asia Pacific Edition. 6th ed. New York, London: Routledge. Boone, L. E. and Kurtz, D. L. 2012. Contemporary Marketing, Page 84, 7th ed. New York: Kaplan Publishing. Boulding, W., Staelin, R., Ehret, M. and Johnston, W. J. 2010. A customer relationship management roadmap: what is known, potential pitfalls, and where to go. Journal of Marketing, 69(4), pp.155–66. Bradley, F. 2008. International marketing strategy. 6th ed. London: Financial Times, Prentice Hall. Cant, M. 2009. Marketing Management. 3rd ed. New York: Free Press. CIM, 2009. Marketing and the 7Ps. The Chartered Institute of Marketing. [Pdf]. Available at [Accessed on 8th September 2014]. Farahmand, N. F. 2011. Organizational marketing planning by management educated managers, African Journal of Marketing Management 3(8), pp.178-187 Forbes 2012 The Future of Fashion Retailing: The H&M Approach. Available at: [Accessed 8 September 2014] H&M 2014. Expansion Strategy. Available at: [Accessed 8 September 2014]. H&M 2014. Responsible Marketing. Available at: [Accessed 8 September 2014]. Lim, S. C. and Lusch, R. F. 2011. Sales margin and margin capitalization rates: linking marketing activities to shareholder value. Journal of the Academy of Marketing Science, 39 (5), pp.647-663 Lindgreen, A. and Finn, W., 2010. Value in business markets: What do we know? Where are we going? Industrial Marketing Management. 34, pp. 732- 748. Marketing Magazine 2013. Champions of Design: H&M. Available at: [Accessed 8 September 2014] Schulze, C., Skiera, B. and Wiesel, T. 2012. Linking Customer and Financial Metrics to Shareholder Value: The Leverage Effect in Customer-Based Valuation. 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