Strategic Position Indicating in Marketing - Assignment Example

Week 1 1. Different people have identified different definitations for marketing which are as Marketing is a culmination of different activities which aims towards creating value, ensuring proper communication, proper delivery and creating value for customers, society, employees and other related within the organization. Marketing is both a science and art which looks towards finding out ways through which customers can be satisfied through the different offerings so that the business is able to make profits and sustain its business. Marketing is a continuous process which is aimed at building long term relationship with the customers by ensuring communication both ways so that customers can be satisfied and ways developed through which the business will be able to make profits for a longer period of time. 2. The 5 different needs of the family is food, water, clothes, shoes and vehicle. The wants here help to identify the different things which different individual members require everyday. It can also be seen that each member has different wants and requirements based on the things which the person wants to achieve in the short. This is largely dependent on the different underlying reasons and things that the person wants or have the desire to have immediately and has an effect on the overall decisions that are taken. 3. The two consumer products that help the user in their daily lives are coffee maker and laptop (Martin, 2012). Both the product has been successful as it helps to meet the different requirements of the consumer better. Coffee maker has helped consumers because of the ease with which coffee can be made by anyone which has ensured that people who are single can even use. The pricing has been done in such a manner that it suits every pocket. The fact that it ensures uniformity in quality and provides the consumer with a pleasant experience has ensured that more and more people look towards the same. Similarly laptop has helped consumers because of the ease with which business can be done easily at home. The pricing has been done in such a manner that it suits every pocket as different laptops with different features are available. The fact that it ensures uniformity in quality and provides the consumer with a pleasant experience has ensured that more and more people look towards the same. Week 2 Woolworth limited faces direct competition from different players looking to follow the same business model like Wesfarmer and Franline. The indirect competition comes from the unorganized sector like the local kiranas and online stores which looks towards providing the same services and looks towards sending the products directly to the customers at their house. A change in the strategy by either the direct or indirect competitor has an effect on the overall strategy taken by Woolworth because since all the business looks towards following the same business model the changes have to be replicated by Woolworth as well. This is because a reduction in price would make customer shift towards other product which makes it mandatory that Woolworth looks to follow the same so that they are able to retain customers and sell their products. 2. The macro environmental changes that will effect Domino Pizza is as Changes in the economic factors like change in the income level will affect the purchasing power which will affect the sales of Domino Pizza. A decrease in the income will reduce the sale and an increase in income will increase sale. A change in technology will affect the manner in which Domino Pizza works as development of better technology will increase the chances of improving the manner in which the company advertises and will help to bring a change in outlook through which the manner in which Domino Pizza works will change Any change will affect their 4P’s as it will lead towards a change in strategies which will thereby have an impact on the 4P’s and bring about wide spread changes in the decisions. For example a decrease in the income level might force Domino Pizza to look towards reducing the prices of pizza or introducing a low prices pizza thereby affecting the 4P’s. 3. The article title Digital Technology’s Profound Game Changer for Marketers by Bussgang in 2012 shows that the manner in which technology is growing will look towards increasing the use of digital technology in the field of marketing. The manner in which digital technology allows the use of digital media towards effective advertising will increase the role of marketing professionals as they will have to look towards using it so that better marketing strategies are formulated and the business is able to take sounder decisions (Bussgang, 2012) The article shows the use of different marketing theories which state that organizations have to find out the most effective technology and keep abreast with the changing technology to be able to perform better. The article clearly highlights the usefulness of using technology and developing strategies based on it. This will help to withstand competition and help to use technology in a manner which will maximize the return for the organization and ensure maximum efficiency. Week 3 1. Information from CIA World Factbook (CIA, 2012) Australia Saudi Arabia India China Vietnam USA Japan Population size 22,015,576 26,534,504 1,205,073,612 1,343,239,923 91,519,289 313,847,465 127,368,088 Population growth rate 1.126% 1.523% 1.312% 0.481% 1.054% 0.9% -0.077% Gross Domestic Income (GDP) $915.1 billion $687.7 billion $4.421 trillion $11.3 trillion $300 billion $15.08 trillion $4.444 trillion GDP growth rate (past 3 years) 2.1% (2011) 2.5% (2010) 1.4% (2009) 7.1% (2011) 5.1% (2010) 0.1% (2009) 6.8% (2011) 10.1% (2010) 5.9% (2009) 9.2% (2011) 10.4% (2010) 9.2% (2009) 5.9% (2011) 6.8% (2010) 5.3% (2009) 1.8% (2011) 2.4% (2010) -3.1% (2009) -0.8% (2011) 4.5% (2010) -5.5% (2009) Per Capita Income $40,800 $24,400 $3,700 $8,400 $3,400 $48,300 $34,700 3 main exports Coal, Iron Ore & Gold Petroleum & Petroleum products Petroleum Products, Precious Stones & machinery Electrical & other machinery, Data Processing Equipment & Apparel Clothes, Shoes & Marine Products Agricultural Products, Industrial Supplies & Capital Goods Motor Vehicle, Semi Conductors & iron & Steel Products 3 Main imports Machinery & transport equipment, computers & office machines and telecommunication equipments Machinery & equipments, foodstuff & chemicals Crude Oil, Precious Stone & Fertilizer Electrical & Other Machinery, Oil & Mineral Fuel and Optical & Medical Equipment Machinery & Equipmen, Petroleum Products & Steel Products Agricultural Products, Industrial Supplies & Capital Goods Petroleum, Liquid Natural Gas & Clothing 2. The company to be chosen as a market for computer games will be decided based on the following (CIA, 2012) Indonesia Taiwan South Korea Thailand Singapore Population size 248,645,008 23,234,936 48,860,500 67,091,089 5,353,494 GDP $1.125 trillion $875.9 billion $1.554 trillion $602.2 billion $314.9 billion Per Capita Income $4,700 $37,700 $31,200 $9,400 $59,700 Inflation Rate 5.4% 1.4% 4% 3.8% 5.2% Distribution of Family Income 36.8 32.6 31 53.6 47.3 Based on the above collected information Taiwan seems to be the most favorable destination foe the start of computer games. This is primarily due to the fact that the population of the country is high which will provide a market to sell the products. In addition to it low inflation rate and high per capita income will provide an opportunity through which the computer game manufacturer will be able to ensure that people are able to pay for it. This has been backed by the distribution of family income. Taiwan thereby seems to be the most probable option and provides an opportunity through which the computer game market can grow. 3. The article titled Customer Loyalty Program that Works by Starvish in 2011 highlights that the use of digital cards which allows customer to get reward points which can be redemed later on has resulted in an increase in customer loyalty. The article highlights those using strategies through which better control can be achieved in gauging the customer loyalty helps to benefit the business. Loyalty cards are a step in that direction as it makes the customer look towards the same company and services again and again. The importance of digital cards can further be visualized on the fact that it helps to ensure better efficiency in managing the manner in which customers are paid different rewards and can be verified easily due to the use of technology which has helped to increase penetration and made customers become loyal towards it. Week 4 1. Description of 3 products are car, computer and mobile phone is as Geographic Product Country State City Suburb Evidence Mobile India West Bengal Kolkata Kolkata The device has been developed to meet the requirements of the place Car India West Bengal Kolkata Kolkata The device has been developed to meet the requirements of the place Computer India West Bengal Kolkata Kolkata The device has been developed to meet the requirements of the place Demographics Age Gender Income Occupation Evidence Mobile 18-28 Both Middle Income Business & Students The increasing trend of the equipment being used by the people belonging to this segment Car 18-36 Both Middle Income Business The increasing trend of the equipment being used by the people belonging to this segment Computer 12-25 Both Middle Income Students The increasing trend of the equipment being used by the people belonging to this segment Family size Family Life Cycle Religion Evidence Mobile Not defined Na na Nothing have been provided Car 4 Na Na Nothing have been provided Computer Not defined na Na Nothing have been provided Psychographics Social Class Attitudes & opinions Lifestyle Personality Evidence Mobile Middle To change regularly Outgoing Funky Seen from the look of the model Car Middle One time purchase Outgoing Stylish Seen from the look of the model Computer Middle One time purchase Outgoing Business Seen from the look of the model Behavioural How often they buy? When they buy? How much they buy? Where they like to buy? Why they buy? Evidence Mobile Frequently Changing technology 1 Store Frequently Seen from their purchasing habit Car Once When the needs arises 1 Store Once Seen from their purchasing habit Computer once When the need arises 1 Store once Seen from their purchasing habit 2. The three products which are selected are in the car industry like Honda, Mitsubishi and Volkswagen. The three are in the car industry and have looked towards positioning their product near to each other. All the three products are aimed at the same segment of the customer and look towards attracting customer on the basis of value for money, mileage and looks respectively. The three products are aimed towards the same segment of the customer and have thereby looked towards differentiating their product and services based on the manner through which they are able to ensure a unique selling proposition. Week 5 1. The two product that have been selected are from the car industry and is Honda and Mitsubishi Product Honda Mitsubishi Core product Car Car Actual Product # Brand Name Honda Mitsubishi Logo Quality Superior Superior Features/Benefits Low Maintainence, better mileage, stylish, comfort and trendy Low Maintainence, better mileage, stylish, comfort and trendy Design/Styling Silver metallic finish Silver finish Packaging Assembled and delivered Assembeled and delivered Augmented Product Regular services & warranty with the product Regular services and warrantly with the product 2. The two different product which has been selected and have similar usage are mobile phone and fixed land line phones. Both the product have a competitive advantage against each other as mobile phones can be used at any place and allows the user to move from one place to another. The cost of fixed landline phone is low and enables better hearing and network at lower cost. Both the companies have to look towards marketing their products because of the fact that the demand for the product will largely depend on the manner the company is able to incite people to purchase the product. Marketing will help to create the need for the product as it will make people realize that they need the product. This will enable to ensure that a demand for the product is created which will transform into increased sale. The targeted customers for mobile phone is everyone who looks towards communication while travelling and want new and sleek design whereas the targeted customer for fixed telephone line is mainly the people who are old and remain primarily at home. The products thereby help to provide the basic function of communication along with the opportunity to use it at ease. This thereby helps to ensure that the needs and requirements of the customer are satisfied. 3. The new product that has been launched is the Artisan Pizza from Dominos. The pizza is similar to other but has a slight differentiating factor as the pizza is square in size and has a thin crust. Due to the presence of less dough the pizza has fewer calories and can be consumed by all (Celentano, 2012). Domino has looked towards targeting the health conscious consumer as well and has looked towards providing pizzas which has less calories. Along with it Dominos also looks towards tapping the same segment of customers and looks towards delivering products which matches their requirements. The unique selling point which the company has adopted for this pizza is that the pizza is square in size and has a thin crust. Due to the presence of less dough the pizza has fewer calories and can be consumed by all. This will ensure maximum opportunity for Dominos to grow its market and to be able to cater to a larger section of the people. Week 6 1. The example of pricing based on perceived value is a taxi cab and a town car service which will both take the person to the same place but at the different price (Perveived value, 2012) The example of pricing based on competition the prices that have been determined for different objects and commodities like food grain and car The example of pricing based on demand and supply is the pricing of different products like vegetables and food grains where the market forces determine the price to be prevalent in the market. 2. The different pricing tactics or strategies which a business can look towards using are as (Maniscalco, 2012) Cost plus Pricing: This is a method where the company decides a profit margin that it wants on a certain product or services. Based on the cost that is incurred in developing the product or services the price is hiked by the profit margin that the business looks towards achieving Price Skimming: This is a method which is adopted in the electronic market where the prices of a product is kept high so that the investment cost can be recovered quickly. Slowly with the passage of time the price of the products starts to fall. Loss Leader Pricing: This is a pricing strategy where the business looks towards selling the product or services at a loss and at a very low price. This is done for a time interval and is done with the purpose to ensure that no new player enter the markets and the competition level reduces as loss would mean that certain business units will stop functioning Penetration Pricing: This is a pricing mechanism where the prices are kept low primarily with the objective of gaining a larger market share. Once the business has been able to achieve the required market share the prices of the product or services is slowly hiked. Premium Pricing: This is a pricing mechanism where the price of the product or services is kept higher with the purpose of ensuring that the customers perceives the product or services as premium and is purchased by customers looking towards purchasing premium products Week 7 1. The advantages of using intermediaries while looking to distribute products to the customers are as follows Intermediaries helps business to develop a network through which goods and services can be send to the customers as it helps the business to use the already created network and ensures little time is required to reach the audience. Intermediaries help the business to improve the penetration. This is due to the fact that intermediaries have a network through which goods and services are available at all places and thereby helps to ensure that the business is able to sell its products to customers over different regions Intermediaries helps business to ensure that they are develop partnership through which the work load for the business gets distributed and the burden in passed on to external bodies. This helps to carry out the functions in the most effective manner and ensures that the business is able to develop a better network to sell their products. 2. The difference between the self service retailer and limited service retailer is that the self service retailer requires that the customers are themselves involved in the services and an example is factory outlet. Limited service retailer on the other hand is the retailer who takes order and delivers the goods or services like telephone ordering. Thus, there exist differences in the manner both the type of retailer works but looks towards achieving the same purpose (Retailing, 2012). 3. It is been seen that more and more companies look towards using different direct marketing tools to market their products to the customers as it enables the company to come in direct contact with the customer. This provides an opportunity through which the cost of intermediary gets reduced and the customers can be provided the same product or services at a lower cost. In addition to it using the method of direct marketing ensures that the business is able to come in direct contact with the customer and understand their requirements. This helps to solve the problems of the customers faster and ensure correct and better response from the company. An example in this direction is Amway and Dell computers. Despite the different advantage that the direct marketing method provides it has certain disadvantage associated with the distribution as the company has to ensure that the goods are provided at time. This can lead towards the following disadvantages Delay in the delivery of products due to the fact that the company had to deliver the product which took time Increased complexity for the business which results in additional time being spent in this direction as the business has to find ways to ensure proper delivery which would delay the decision that the business has to make in other areas Week 8 The advertisement of Pepsi and Coca Cola as seen from the print media highlights that both the products looks towards catering towards the same segment of the customers. The advertisement is shown below (Adv, 2009) The above advertisement shows that both Pepsi & Coca Cola looks towards targeting the same segment of the customer i.e. youngsters and looks towards ensuring that their product provides joy to the customers from consuming the product. The product also looks towards ensuring that they have fewer calories and are aimed for people who are in look for products which have fewer calories. The overall depiction made from the pint media thereby looks towards ensuring that people all around the place are tempted to purchase the product and looks towards consuming it because of enhanced taste. The main message of the advertisement is to ensure that they are able to communicate with the targeted customers where they look towards making the customers understand that their drink has lesser calories and is fit for consumption. In addition to it the drink will look towards refreshing the customers and will provide a new zeal and energy to the people consuming it. The purpose of the advertisement is to persuade the customers to purchase the products because the print advertising has been done is such a manner where it looks towards ensuring that the targeted customers through the use of straw is provided a direction where they highlight that people consuming it don’t put weight. Further having the lid of the bottle opens further persuades the targeted customer to purchase the product. The advertisement which is more effective is the one which has been made by Pepsi. This is primarily due to the fact that the message is better communicated and looks towards making the customers purchase the product. Further the advertisement of Pepsi also highlights the fact that people consuming it will not be affected by obesity thereby giving a bigger message and looks towards attracting people towards purchasing the product. This thereby looks towards following the AIDA model and looks towards capturing the attention of the customers. Week 9 1. The product which has been chosen to be analyzed is McDonalds. This analysis takes into consideration the demographics, innovation and environment which will help to understand the impact it is creating on the business of McDonalds. The analysis is Political Factors McDonalds has been influenced by political factors and have an important role in determining the manner the company will perform. Being able to tackle the political factors in the best possible manner ensures that the business will be able to grow. The harmful substance like cholesterol created a negative influence which was tacked by brining in innovation and ensuring that the product has low cholesterol and is more fir for consumption (Chrisan, 2001) Economic Factors McDonalds working gets influenced by the economic situation of the country as inflation and exchange rate has an effect on the business of McDonalds especially in international transaction. The fact that McDonalds look towards targeting the younger generation so an effect on exchange rate or inflation or recession has an effect on the number of customers visiting their outlet which has an effect on their overall business (McLaney, 2003). Socio-Cultural Factors McDonalds is aimed at the younger generation and the targeted audience for the company is thereby people who are young. This has thereby given shape to the socio-cultural environment and has enabled McDonalds to be able to create a market for itself. Through this methodology McDonalds has also been able to understand the consumer behavior and requirements in this regard and has been able to work on the smaller aspects which has permitted McDonalds to revolve their business (Berkman & Gilson, 2001) Technological Factors McDonalds has used technology to attract people especially the younger generation towards their product and outlet. The company has used technological advancements in ensuring that certain gifts like toys are provided in their product which has differentiated them and enabled them to show the validity of using technology and matching them with the business requirements (Firoziyan, Hasangoli & Stiri, 2009) Legal Factors McDonalds is facing a huge challenge in this direction as increasing concern towards obesity and cholesterol served in fast food has raised legal concerns (Schlosser, 2001). The importance of legal consideration can be seen from all directions and McDonalds has to look into it and deal with it effectively so that they are able to continue with their operations in the most fruitful manner SWOT Analysis The SWOT will work on the strengths, weakness, opportunities, and threats that McDonalds that will help them to improve their business and will thereby ensure that the business is able to gain efficiency for future developments in the future. The analysis is as Strengths McDonalds has a strong presence in the market and has almost double the share than its nearest competitors. Having a huge size as seen by the market share has enabled McDonalds to gain economies of scale as having a huge size has enabled the business to reduce cost at the same time reduce the risk that the business faces (Ismailpour & Ghafarieashtiyani, 2002) McDonalds has a strong portfolio of estates as having outlets at most locations to ensure increase visibility and traffic handling has helped McDonalds to have huge assets. This has helped McDonalds to develop strong brand recognition (Corsini, 2009) Weakness McDonalds faces a problem from the food industry as the market is highly saturated. This has multiplied the difficulty level for McDonalds as being able to ensure high rate of development when the market has different players is a problem which McDonalds has to deal with. In addition to it the market is expected to grow as 2% and the degree of competition and saturation seen in the food market complicates the situation for McDonalds (Daniel, Charls & Joseph, 2003) McDonalds faces another problem with regard to development of new products so that their product line improves. Opportunities McDonalds should look towards making changes in their menu by adding new products based on customers taste and preference. McDonalds can look towards increasing their business by identifying more domestic and global destinations which provides an opportunity to cater to a larger section of the society. Threats McDonalds faces a threat of global economic recession as having outlets at different locations increases the likelihood of the recessionary effects being witnessed in international countries to the domestic ones. McDonalds faces threats from increasing cost and reducing profit margins as the food industry is becoming saturated (Awni, 2008) 2. The target customers is as Who are they? People in the age of 12 to 24. What do they buy? Teenagers look towards purchasing products from companies which helps them to be associated with the brand and looks towards pushing themselves for purchasing the product as well When do they buy it? Teenagers look towards purchasing the product when they are able to associate themselves with the product which creates an urge and desire to purchase the same How do they choose? Teenagers look towards choosing McDonalds due to the taste that customers get from consuming the product Why they prefer a product? Teenagers purchase a product when they are able to associate themselves or someone else with the product or services that is being offered How they respond to a marketing program? Teenagers look for slogans or words which are catchy and flashy so that it captures their imagination. They look towards products or services which are able to create a positive impression on them about the product and services. 3. The marketing plan for McDonalds will thereby look towards concentrating on the manner in which they will look towards finding out a method through which maximum information about their products and its pricing can be spread. This has made the company look towards pricing their product in such a manner that it helps to attract all section of the society and provides an alternative through which the business will be able to work on the 4P’s and ensure that they are able to provide the correct product at the correct price and have proper strategies through which the product is promoted. Week 10 The article by Blanding titled Advertising: Its Not Mad Men Anymore published in 2012 shows the importance of advertising and the increased role it has in ensuring that the business is able to achieve its objectives. This goes in line with the different theories which stress the importance of understanding the manner in which the business will be able to gain efficiency through advertising. This is supported by the theory which helps to understand the fact that proper strategies whether it be in the direction of advertising and marketing helps the business to be able to develop strategies based on which the overall performance of the organization improves. This article thereby helps to ensure that the learning’s are better applied and helps to improve the overall learning. References Awni, R. 2008. Strategic position indicating. Translated by SeyedAmir Poya seyfzadeh, Management Selected Monthly, no.78, p.70. Adv. 2009. Pepsi Vs Coke: Print Advertisement. Retrieved on December 3, 2012 from http://www.hyd-masti.com/2009/01/pepsi-vs-coke-print-advertisements.html Bussgang, J. 2012. Digital Technology’s Profound Game Changer for Marketers Retrieved on December 3, 2012 from http://hbswk.hbs.edu/item/7119.html Berkman, H. & Gilson, C. 2001. Consumer Behavior Concepts and Strategies, Kent, Boston Blading, M. 2012. Advertising: Its Not Mad Men Anymore. Retrieved on December 3, 2012 from http://hbswk.hbs.edu/item/6856.html CIA. 2012. The World Factbook. Retrieved on December 3, 2012 from https://www.cia.gov/library/publications/the-world-factbook/ Celentano, C. 2012. Artisan Food Trend: Product Positioning of Local & Hand Made. Retrieved on December 3, 2012 from http://foodbeverage.about.com/od/new_product_launches/a/Artisan-Food-Trends-Dominos-Artisan-Pizza-New-Product-Launch.htm Chrisan, P. 2001. Marketing: A Behavioral Analysis, McGraw – Hill. New York Corsini, R. 2009. The Dictionary of Psychology. Philadelphia: Brunner/Mazel, pp.19. Daniel, C., Charls, L. & Joseph H. 2003. Marketing, 5th edition, south-western. New York. Firoziyan, M., Hasangoli, T. & Stiri, M. 2009. Investigation of the effectiveness of the services on different processes affecting consumer decision. Commercial Management Magazine, 1 (3), pp.125-146. Hawkins, D., Best, R. & Coney, K. 2006. Consumer behavior, compilation of the marketing strategy, Translated by Ahmad Roosta & Atiyeh Botahi, Sargol publication, Tehran. Ismailpour, H. & Ghafarieashtiyani, P. 2002. Marketing, 3rd edition, Auniversity of Tasmania, Australia McLaney, E. 2003. Business Finance, Theory and Practice – 6th Edition. Pearson Education Limited Martin, M. 2012. How the best consumer products make your life better. Retrieved on December 3, 2012 from http://www.fastcodesign.com/1669377/what-makes-a-product-indispensably-useful Maniscalco, P. 2012. Pricing Tactics, Strategies through Distribution. Retrieved on December 3, 2012 from http://www.pricingleadership.com/pricing-tactics-strategies-through-distribution/ Perceived Value. 2012. Pricing on Perception. Retrieved on December 3, 2012 from http://swellstrategies.com/articles/Pricing-on-Perceived-Value.htm Retailing. 2012. Retailing. Retrieved on December 3, 2012 from http://www-rohan.sdsu.edu/~renglish/370/notes/chapt17/index.htm Starvish, M. 2011. Customer Loyalty Program that Works. Retrieved on December 3, 2012 from http://hbswk.hbs.edu/item/6733.html Schlosser, E. 2001. Fast Food Nation. New York, USA: Mifflin Company Read More