The Various Environmental Forces That Affect Marketers and Their Programs - Assignment Example

Marketing essay 10 points) (a)Describe the various environmental forces that affect marketers and their programs. Various environmental factors tend to affect marketers. They include laws and government, economy, supply lines and consumer trends. The trend of the customer may change the entire business environment leading to a greater effect. Trends may result from fads, endorsement or sudden change in the buying habits of the consumers. Product supply lines are often influenced by natural disasters, weather, and the fuel cost. Changes in the market supply directly affect marketing (Caprotti, 165). Changes in the laws tend to directly affect marketers in numerous ways. Restriction on purchase can affect the number of customers willing to purchase a certain product. National, local and global economies are some of the greatest environmental factors to be dealt with. (b)What environmental forces may affect Chobani, why and how? Various environmental factors tend to affect the company in a number of ways. They include social, technological, ethical, political and social factors. Government policies and laws tend to affect the company in terms of tax. Political power has the power to affect the business results. Politics tend to affect government policies at both the federal and local levels hence influencing Chobani either directly or indirectly. Increase and decrease in tax is a political factor that will impact on the market directly. Political factor plays tend to influence the social, legal and economic aspects of the business (Caprotti, 166). 2. (5 points) Describe the value proposition that a consumer would consider in evaluating your term project product/service. Delivering value to the customers is a vital component to entrepreneurs, managers, and leaders alike. Various interpretations exist pertaining to what is meant by customer value. The term may mean receiving what is desired, low price, receiving something in return and receiving quality for what is paid. Lawrence (27) defined customer value as an evaluation of attribute performance, product attributes, and consequences arising from the utilization of the product. 3. (10 points) (a)Looking at the marketing mix, how do the elements relate to a product being introduced into an EU market rather than the US market? (b)What would you need to change and why? Marketing mix is a phrase that is utilized in describing the various kinds of choices that companies are forced to make in the whole process of bringing a service and a product to the market. The four Ps that are used to define marketing mix include promotion, price, place and product. There are various factors that need to be changed based on the product as it is introduced to a new market. Marketing research has to be conducted in order to identify the needs of the customers in the new market. The markets in the United States are quite different from the one in the European Union (Srivastava, 35). The price of the product should also be changed since the European Union utilizes a different currency. 4. (5 points) Where would you need to interact with other functional areas (e.g., finance, accounting, management, operations) in a company to get a new product from marketing into the marketplace? The marketing department has to interact with other departments in the organizations such as accounting, finance, operations and management. The interaction will offer the assistance required to market the product in question. Finance department will offer the finances required in the marketing process. The accounting department will guide the department on the utilization of the finances, with the management providing guidance. Operations departments are often concerned with controlling designing and overseeing production process. The marketing department has to liaise with the operation department to identify the products that have been produced and therefore determine the marketing strategies that can be utilized. 5. (10 points) (a) Describe the consumer purchase decision process. (b) Using your term project product, discuss how a consumer would go through the process to purchase. A consumer often goes through various steps before making a decision on the type of a product to purchase. The first step for a consumer entails recognizing the need. Need recognitions is often identified as the first and most essential step in the purchasing process. A consumer may be in need of car because of a number of reasons that may be related to business or other factor that may be personal. Information search is the second step in the purchase decision process. Once the consumer identifies the need, it is time for them to identify the possible solutions to the problem (Dunk and Kenny, 4). The consumer will be able to identify information pertaining to the choice of the car to buy. The consumer will be able to search for information for various types of automobiles including green cars. The third step will entail the consumer identifying alternatives that are offered to him and to assess the most suitable alternative that will meet his needs. There are various alternatives for green cars that the consumer may be able to identify such as electric vehicles, natural gas, clean diesel, and hydrogen and battery electric vehicles. Purchase decision is the fourth steps in the consumer decision making process. The consumer at this stage is able to choose the brand or product that suits his needs. The last step is the post purchase behavior that entails the consumer evaluating the adequacy of the original needs after purchase and use of the product (Lawrence, 216). 6. (10 points) (a)Describe the differences between secondary and primary research and explain how each is used for optimal marketing results. (b)Describe what you used/are using for your term project and what you got/want to get from it. Secondary research is often based on studies that were previously conducted by chamber of commerce, government agencies, trade associations as well as other organizations. Secondary research is often of low cost and easier to find (Rodic and Budimircevic, 130). You can access secondary market research online at the industry and government websites, business websites, local library and in newspaper and magazine. Primary research is often tailored to the particular needs of the company and is conducted by either an individual or the company. Examples of primary market research entail interviews, field tests and focus groups. I utilized secondary research in my term project and I was able to acquire information pertaining to marketing of green cars. I noted that the low demand on green cars is often as a result of its high initial cost and lack of information pertaining to the advantages of the vehicle (Plank, Landeros and Plank, 45). 7. ( 25 points) (a)Define market segmentation and note the bases on which marketers segment. (b)Discuss why segmentation is such a key marketing concept. (c) Discuss how your team chose the market segment(s) for the term project Marketing segmentation is a process of separating a market into various homogenous groups of customers. Market consists of consumers and consumers vary from each other in various ways. Variation often depends on different factors such as buying attitude, resources, locations, as well as buying practices. Segmentation entails dividing large heterogeneous markets into smaller segment that can be managed more effectively and efficiently with services and products that much to their unique way. Marketing segmentation is important for the organization serving large markets. Marketing segmentation pertains to the division of a set of customers into individuals with similar wants and needs. Market segmentation promotes better allocation of the company’s resources. An organization has to make choices in specific numbers of buyers as a result of limited resources. With growing diversity in consumers’ tastes, companies are taking note on the significance of market segmentation. Market segmentation is an important concept in marketing. Product differentiation strategy and market segmentation strategy can give an organization commercial advantage. Market segmentation is a technique that is often utilized by most companies to attract the right customers (Weinstein, 1). The market goals of segmentation analysis entails reducing risks in deciding when, how, where and to whom the service or product will be marketed. The approach tend to promote marketing efficiency by ensuring efforts are directed towards the selected segment in a way that is consistent with the uniqueness of the segment. The marketing criteria tend to focus on classifying and identifying people in group that are known as segments. There are various segmentation variables that an organization can effectively utilize to construct market segments. A simple guide to segmentation can be categorized into demographic, geographic, behavioral, and psychographic and benefit sought (Weinstein, 2). By utilizing any of these bases, either in combination or individually, an organization can be able to design market segmentation for assessment to help them select an effective target market. My team was able to select an effective market segmentation strategy by basing on various evaluation criteria such as heterogeneous, homogeneous, measurable, accessible, responsive and actionable criterion. Homogeneous criteria are important criteria that tend to target consumers with similar needs and characteristics and are located in the each segment. Heterogeneous criteria demonstrate that consumers in overall markets have been divided based on needs that keeps on differing. Measurement is vital in evaluating the attractiveness of the segments. Substantial criteria helped to identify markets that were substantial enough. Accessibility made it easier to reach and communicate with various market segments. Actionable criteria enabled the company to implement an effective marketing mix that targeted each segment (Rodic and Budimircevic, 130). Finally responsive criteria make it easier for the selected market segment to react to a discrete marketing mix. Marketing segmentation was important as a result of numerous factors which included differentiating and controlling marketing budgets for a defined target group in the market, dealing with customer retention as well as minimizing risks by locating targets with same purchasing habits and utilizing marketing tactics and sell products that are appealing to the customers (Araujo, 12). 8. (25 points) (a)Describe the product life cycle, provide examples of products in each phase, and explain how marketers use this concept.(b)Be specific regarding the 4 p’s and other strategies and tactics. The product life cycle is an essential marketing concept. It describes the stages that a product goes through from the time it was thought off until it is finally removed from the market. Not all products are able to reach the final stage. Some may rise and fall while others may continue to grow. The main stages of product life cycle entail introduction, growth, maturity and then decline. The different stages possess different characteristics. The introduction stage is often considered as the most expensive for organizations that are launching new products. The size of the market at the start is often low leading to fewer sales even though the sales tend to increase with time. Moreover, the cost of things like consumer testing, research and development, and the marketing needed in order to launch the product can be so high especially in a sector that is competitive (Kaldasch, 20). The second stage of product cycle is known as the growth stage. The growth stage is often characterized by increase in profit and sales. Additionally, the profit margin and overall amount of profit tend to increase. This makes it easier to invest more money in marketing activities such as promotion with an intention of maximizing the marketing potential. . Maturity is the third stage of product cycle. The product at such a stage is often established and the aim of the company is to maintain the market share developed. The stage is considered the most competitive for many products and the company has a mandate of investing wisely in the various marketing strategies. They also need to consider any product improvement or modification to the production process which offers them a competitive advantage (Kaldasch, 23). Decline stage is the final stage of product cycle. The market for the product usually begins to shrink. The shrinking is often as a result of the market becoming saturated or because the buyers may be shifting to other products. Even though stage may be inevitable, companies may still make some profits by shifting to cheaper markets and less expensive production methods. Examples of products at each stage of production entail 3D TVs at introduction stage, Blueray discs at the growth stage, DVD at the maturity stage and finally Video cassette at the decline stage. Product cycle is an essential concept in marketing. Consumers tend to purchase million of products each year. The product they purchase often posses a life cycle. The demand for modern and new product often increase rapidly after launching period with old established goods becoming less popular. Most companies have an understanding the product they sell have limited lifespan. It is the reason why most company tends to invest in new products in order to ensure that the business continues to grow. The product cycle stages enable the company and the marketing department to maximize at the stage that will bring better performance (Kaldasch, 24). Question 10b) Marketing is a business function which identifies the needs of the consumer, identifies the target market and applies services and products to serve the market. It also entails promoting such services and products within the market place. Marketing is the centre to the success of business, small or large, with the primary focus on consumer value, quality and customer satisfaction (Srivastava, 30). Marketing mix is a tool that is often utilized in marketing of products. The four Ps of marketing mix entails product, place, price and promotion. Products are services and goods that are produced by the company for sales in the market. Product development should consider the features, design, quality, customer service as well as other services that may attract the consumer. The place is often in regard to the location, distribution and methods of ensuring the consumer is able to access the product or service. It entails the location of the business, distributors and potential utilization of the internet to market the products (Srivastava, 35). Product price is the amount of money that consumers have to pay in order to buy the products. Considerations that are of concern in relation to price entail discounting, price setting, cash and credit purchases as well as credit collection. Promotion is the act of communicating the advantages and value of the services and products to the consumers. It entails utilizing methods such as direct marketing, advertisement and personal selling. Effective utilization of the marketing mix leads to increased sales. Work cited Araujo, L. Markets, Market-Making And Marketing. Marketing Theory 7.3 (2007): 211-226. Web. Caprotti, Federico. Environment, Business And The Firm. Geography Compass 6.3 (2012): 163-174. Web. Dunk, Alan S., and Graham K. Kenny. Departmental Performance Evaluation In Marketing And Production Contexts. Management Research News 9.1 (1986): 4-6. Web. Kaldasch, Joachim. The Product Life Cycle Of Durable Goods. SSRN Journal n. pag. Web. Lawrence, Raymond J. Models Of Consumer Purchasing Behaviour. Applied Statistics 15.3 (1966): 216. Web. Plank, Richard E., Robert Landeros, and Linda Fernandes Plank. Values Driving Decisions In Questionable Purchasing Situations. International Journal of Purchasing and Materials Management 30.3 (1994): 44-53. Web. Rodic, Jelena, and Kristina Budimircevic. Marketing Research Of Consumer Perception. Marketing 42.2 (2011): 127-134. Web. Rodic, Jelena, and Kristina Budimircevic. Marketing Research Of Consumer Perception. Marketing 42.2 (2011): 127-134. Web. Srivastava, Rajshree. Shift Of Marketing Mix To E-Marketing Mix: The Birth To New Era. SSRN Journal n. pag. Web. Weinstein, Art. Segmentation And Relationship Marketing. Journal of Segmentation in Marketing 3.2 (2000): 1-3. Web. Read More