Btec Business Level 3 Unit 4
BTEC Higher National Diploma in Business
Unit No: 4 Unit Title: Marketing Principles Assignment Cover Sheet
Assignment No: 1
I hereby confirm that this assignment is my own work. I have identified and acknowledged all sources used in this assignment and have referenced according to the Harvard referencing system. I have read and understood the Plagiarism and Collusion section provided with the assignment brief and understood the consequences of plagiarizing.
Name:
Registration Date: Monday, …show more content…
July 29, 2013
1. Understand the concept and process of marketing. 1.1. Elements of the marketing process. The marketing process consist four steps. These four steps are completed with the goal of creating value for the customers. Marketing process is a procedure, doing something step by step. In marketing as it says there are four steps: Situation Analysis, Marketing strategy, Marketing Mix decisions and control. The first step is to understand customer needs and wants by marketing research. When it finds them, comes the analyzing and based on that to do a plan that would help to create the right product to the right customers. One of the best way to satisfy customer needs is to identify a strategic plan. Market research will provide specific market information that will permit the firm to select the target market segment. The marketing strategy includes segmentation, targeting, positioning the product and value. Marketing Mix decisions includes product development, pricing decisions, distribution contracts and promotional campaign. The last step is control. At this step the marketing plan has been developed. As the market changes, the Marketing Mix can be adjusted to accommodate the changes. Small change in customers` needs can change everything in Marketing Mix. The marketing process does not end with implementation – continual monitoring and adaptation is needed to fulfil customer needs over the long- term. (Business Knowledge Centre- NetMBA – www.netmba.com) The organization which is selected for this report is restaurant chain “Pizza Delique”. The chain starts from small restaurant in Blackstock Road in London and in few years it becomes one of the most popular Italian restaurants in the city. In five years there are near twenty restaurants “Pizza Delique” in London.
1.2. Evaluate the benefits and costs of a marketing orientation for the organisation. The benefits for “Pizza Delique” are that there is better relationship because of the customer` s loyalty. People love to go there because they make homemade pizzas and pastas, that have the taste of the best pizzas from small Italian village, so far away from London, and at the same time makes you feel like it is so close to you. This uniqueness gives the benefit that the restaurant makes better products from its competitors and people prefer them. At the same time with customers` feedback they develop their dishes like antipasti, they mix some Mexican dishes and are always ready to change the taste if people do not like it. That helps to grow the sales levels and to increase their profits. This is good way to present successful new product in the market. With loyalty customers “PizzaDelique” can make improvements in market position. Of course there have a lot of costs out there. One of them is the more one organization listen the customers, the more troubles can be found. This happens because customer`s demand always change and one organization never knows what customers can like tomorrow or after one week. The restaurant should be very flexible about customer` s interests. To be flexible cost a lot of money and time. To survive in the competition world is another cost that should be given much attention. The restaurant has to attract people with something that cannot find in the other restaurant. That costs money, time and imagination. 2.Be able to use the concepts of segmentation, targeting and positioning. 2.1. Show Macro and Micro environmental factors which influence marketing decisions. In the marketing process there should be seen at the organization` s situation in higher- level goals. It can be said as environmental analysis. It is about collection of data about internal and external factors which influence marketing decisions. When learning is about the situation inside the organization it is about internal audit and when learning is about the situation outside the organization, it is external audit. All the information is evaluated into strengths, weaknesses, opportunities and threats. This is SWOT analysis. This understanding helps to develop a marketing plan to leverage all those factors. (BTEC Level in Business, A Person Custom Publication, p. 506) The internal audit is Micro environment factor in the company. It covers the mission of the company, current offering, business relationships, key issues, the competitors. These factors are instrumental in the way a company makes its mission. The external audit is the Macro environment factor. This is so- called PESTEL. It includes all factors, which influence to the organizations. They are political factors, economic factors, social- culture, ecological and legal factors Micro and Macro environment factors includes as it said strengths, weaknesses, opportunities and threats. This called SWOT analysis. A strength is an internal capability that shows the most object that the organization is good at. “PizzaDelique”` s strength is homemade dishes that they present to the customers. Another strength is that they make good relationships with their customers and always listen to the feedback that customers give to them. The weaknesses are internal capability which is the weak like in the organization and make the process risky.
For example a weaknesses of the restaurant is that they change too much the products because they want to make the best product for everyone. This is risky because the customer will be confused about the exact taste of a pasta or pizza. They may like the first taste and when they order the same thing again the taste will be quite different, that they may not like. An opportunity is an external factor that the organization can experiment for higher implementation. For example, “PizzaDelique” found that health-conscious consumers are interested in their dishes. That is why the restaurant started to make healthy and low fat pastas, that are helpful to loose fat if you mix it with gym. A threat is an external factor that could depress the organizational performance. The competitors are big threat for every business. For the restaurants as well. There have a lot of Italian restaurants in London, that offer the same dishes like “PizzaDelique”. It has to find its strengths and opportunities and use them very well to overcome its …show more content…
competitor. 2.2.Propose segmentation criteria to be used for products in different markets. Market segmentation can be more efficient than traditional marketing techniques such as product differentiation. Marketers focus their advertising on specific segments, they can expect better results from each segment than they could expect from these consumer groups if treated as a whole.
Geographic location
This is a very important segment as geographic location can tell a great deal about a group. From geographic locations can tell whether people are more likely to pizzas or pastas. “PizzaDelique” is located on area that there are mixed very cultures. However most of them are Italian and Spanish. That is why the first location of the restaurant chain is very well thought out. Age
The age is another segment that is very important. A product should be designed with some age range in mind so that marketing campaigns can be targeted. For Friday and Saturday evenings the restaurant offer special menu for people between 20 and 30 years old. The menu includes pastas served with cocktails and soft drink. On Fridays and Saturdays come salsa dancers that make special Latino evenings for fun. On Sundays the restaurant offer family menu that big families can come with their small children. There have children menus that present half pizzas and children portion pastas. There have big family pizzas 20 inches. That is how one product like Italian restaurant can cover two and more segments and can be more profitable.
2.3.Choose a target strategy for the chosen product. Target is “specific group of consumers at which a company aims its products and services” (http://www.entrepreneur.com/encyclopedia/target-market ). Age Target Marketing According to "Entrepreneur" ' s website, extensive research is necessary for age or generational marketing to determine the status and living situations of consumers in a potential target group. For example, as it said earlier the age target marketing is very important for the restaurant business.
Gender-Specific Marketing
Gender-specific marketing shapes an advertising campaign. How the small business accomplishes this task depends on the outcome of the market research and gender needs within the local marketplace.
Geographic Target Marketing
Targeting a marketing campaign to meet the signature geographic demands of consumers in the marketplace can boost the organization` s importance and necessity in the minds of consumers. For example, the restaurant has summer garden where people can stay outside during their lunch. In the winter there have special heaters in front of every table to be more comfortable for the customers. (http://brainmass.com/business/marketing/81536 )
2.4. How buyer behavior affects marketing activities in different buying situations.
Consumer buying behavior is “the mental and emotional processes and the observable behavior of consumers during searching purchasing and post consumption of a product and service” (Batra & Kazmi, 2004). Consumer behavior is study of how people buy, what they buy, when they buy and why they buy. It includes the elements from psychology, sociology, anthropology and economics. With that knowledge, the restaurant will know exactly what customers are missing to increase the value, from which, the company will attract the potential customers. Target market of “PizzaDelique” includes young people who have high demand for their products because it meets their aesthetic that other products do not. By the each product, the demand and usage product is not the same so, the factors affecting their buying behavior is different. (http://www.studymode.com/essays/How-Buyer-Behavior-Affects-Marketing-Activities-1564919.html)
2.5. Propose new positioning for a selected product.
Being right on the product positioning can result in increased sales. Being wrong means it might not sell too much.
Product positioning has been described as 'winning the hearts and the minds of customers '. Great brands have long term customers (for example The Mac customers have with their Apple computers). (http://www.more-for-small-business.com/product-positioning.html)
New positioning can be more advertising in TV and radio. Near to the restaurant there have the Arsenal hostel. It is good idea to discuss with the hostel managers for the opportunity to feed the people from the hostel with special menu with bigger discount. The hostel usually has young students as quests so the price strategy should be different from the regular. The prices will be consistent with the hostel customers. So the turnover of people will always be full. The strategy will be entering a new market through, introducing existing product to a new market. As it said earlier the price strategy will be different. The aim is to cover the “one time” customers. The people are tourists so they are short- term customers. However if there is an agreement with the hostel that the restaurant will serve it for five years there is the security that the restaurant will be profitable in 50% only from the hostel in next five years. 3.Understand the individual elements of the extended Marketing Mix. 3.1.Explain how products are developed to sustain competitive advantage.
The product is “a term used by manufacturing and service businesses to indicate the goods or services they provide” (Complete A-Z Business Studies, David Lines e.t., 4th edition, 2003, Hodder & Stoughton, London, Great Britain).
The most important thing is to keep the product still “in the game”. That means that there have to be used techniques, which help to a product to develop itself in a competition. There have three techniques that can be used- generic dimension, sensual dimension and extended dimension.
The generic dimension is the size and package of the product. It is everything about how the product is going to look like. The sensual dimension is everything that you can touch and feel in a product. The last one is extended dimension, which is the benefits that come with buying a product.
“PizzaDelique” can use all those techniques. Its generic dimension can be the image of the restaurant, how it looks like. There are big advertising boards with most of the products that they serve. Because of the boards the restaurant can be seen from afar.
Sensual dimension can be the food and the drinks. The customers can taste and touch all the products it the restaurant. The last technique is the benefit that customers take with the products. They can add different taste in ordered product, they can choose half portion or bigger one, if they order two big dishes, they can take one small for free.
This is the unique sale of “PizzaDelique”. It always gives something new and something interesting for its customers. When a customer comes to order he knows that the restaurant will surprise him with something new and something good. The staff always asks the customers for a feedback, which makes people feel special.
These actually are one of the factors for developing the product. Primarily the quality of the product must be maintained still in a high level. There can be improved the packaging, for example all of the boxes to be with the name and the logo of the restaurant. There are two ways of managing the product: 1) Product- Life- Cycle, 2) The Boston Matrix.
1)Product- Life- Cycle - Is an important concept in marketing. It describes the stages of a product goes through from the beginning until the product is removed from the market. Not all products go until the final stage. Some continue to grow and others rise or fall.
Introduction – researching and developing the product, low sales level, high unit costs
Growth – when sales are increasing at their fastest rate,
Maturity – sales are near their highest, but the rate of growth is slowing down
Decline – final stage of the cycle, when sales begin to fall. (http://www.tutor2u.net/business/marketing/products_lifecycle.asp)
“PizzaDelique” is in the “growth”. There have fast growing sales, the product gains market acceptance. The market grows, profits rise but there are a lot of new competitor. The relevant strategies at the growth stage for the restaurant can include the advertising to promote the brand awareness or to go for price leadership.
2)The Boston Matrix – There is a close relationship between market share and market growth.
This is another method to develop a product. The Boston Matrix has four stages as well:
· Stars-Equivalent to “growth” stage of product lifecycle Cash Cows. There is high market share and high market growth.
· Cash Cows- Equivalent to “maturity” stage of product lifecycle. There is high market share and low market growth.
· Dogs- Negative cash flows. Equivalent to “decline” stage of product lifecycle. There is a low market share and low market growth.
· Problem Children- known as “Question Marks”. Can become stars, but investment is required. Equivalent to “introduction” stage of product life cycle. (http://www.businessstudiesonline.co.uk/AsA2AppliedBusiness/TheoryNotes/Unit10/10_2/PDF/02%20The%20Boston%20Matrix.pdf)
According The Boston Matric “PizzaDelique” is a Star. It has high market share and high market growth. It is very important to keep this stage, but is very difficult as well. There so many new competitor and the old ones are still in the market. From the management depends which stage will be the next- the Cash Cows or The
Dogs. 3.2.How distribution is going to be arranged to provide customer convenience. There are two types of distribution- direct and indirect. Decisions with respect to distribution channel focus on making the product available in places where customers expected to shop for them to satisfy their needs.
Depending on the nature of the product, marketing management decides to put into place an exclusive, selective, or intensive network of distribution, while selecting the appropriate wholesalers. The right choice of the factors can give a company some competitive advantage. (http://sujai-marketing.blogspot.co.uk/2010/11/distribution-customer-convenience.html) There can be used Business to Business and Business to Consumers strategies. From the one side there have costumers that are most important peace in the business. “PizzaDelique” use B 2 C and use direct distribution because it is the right strategy to provide customer convenience. 3.3.How you would set the price of the product to reflect organization` s objectives and marketing conditions. There are two ways to set the price. It depends what are you selling. There are prices for short- term sales and prices for long- term sales. For short- term sales means discounts. That includes the thing that first the product starts with low cost to attract people to buy it. They attract people to go into their store with the hope that people will buy more things that they thought. Discounts and sales are one of the main point is short- term pricing. Long- term pricing is cost- based and demand- based. Demand- based pricing is used for things that people do not have another choice like insurance and train tickets. Of course there cannot be used in restaurant business because the competitors will use that and “PizzaDelique” can die in two weeks. Cost-based pricing is to make sure that you will get the profit and you will get the cost of the product. This is the strategy that “PizzaDelique” use to make its price. 4.1.-3.4.-3.5. Recommend marketing mixes for the two different segments you have discussed, explain marketing mix with including promotion, explain the extra three elements of marketing mix.
From the main pieces of marketing mix there have more three extra and they are People, Process and Physical environment. These are the extra 3=pies in marketing mix. People refer to the customers service staff. The staff` s attitude is a reflection of what your company is. The staff need to be good to listen the customers. Process is the procedures and the mechanism of activities by which services are used. Or this is how the product will reach on the end user. Physical environment is the elements of marketing mix, which customers can actually see when they use a service. Or this is: Are the customers feel comfortable in the restaurant?
The two segments that there will be seen the all seven pies are age and geographic segment.
Age segment: the product is served in different way according the age of the costumers. There have children menu for the kids, there have a special menu for the young people which includes cocktails in the end of the week. The price is cost- based price mixed with short- term price because lunch time the restaurant does different discounts to attract the customer with the hope that they will consume more that they thought. The place is consistent of the customers that the restaurant wants to attract. It is in are that there have families and live more Italian and Spanish people that prefer this kind of food. The promotion here is in giving fliers and making contract with the Arsenal Hostel to attract their guests. People- as it said are the staff of the restaurant. They are one of the most important piece of the well-working organization. The staff` s behavior depends of what kind of customer is in from of them. If there are children they do and play games with them, if there are young people that come for a party, the staff does the party with them while they work. The process of the work in this restaurant is that managers do the contact with the customers by using different strategies like advertising and offers, do quality products, endeavor to attract more customers, build close relationship with the current customers and always improve the product all the time. Location segment: the product is selected by the place that the restaurant is located. The place is an area with Italian and Spanish people, so the product will be Italian or Spanish food in order to ensure that the business will not fail. The promotion will be made from Italian or Spanish people to attract even those who do not start to learn the English language. There can be dancers- promoters to attract young people. The restaurant`s process is mix of fun and quality in one product. The all 7- pies in both of segments are quite similar. The reason of that is that “PizzaDelique” wants to cover customers from all ages and from all area. The promotion here has very important place. There are two strategies that the restaurant can use to promote the food. They are controllable and non -controllable. The controllable strategies are the advertising, the sales promotion, the publicity. The restaurant uses all of them in maximum that they can be used. The non- controllable are the recommendations, people` s perceptions and word of mouth. The recommendations and people`s opinion cannot be controlled. At the same time that promotion is most important that the controlled one. It is free but very valued. “PizzaDelique” use different promotion techniques to keep the idea for a funny and quality restaurant in the customer minds. They use for example informative promotion technique. In this case the restaurant just informs people that the restaurant still has its own surprises for them if they come and get a lunch or dinner there. It uses a promotion above the line because it wants to attract as much people as it can, from children until grandmothers. It promotes on TV, on radio, on nearest billboards and local magazines and newspapers. (BTEC Level in Business, A Person Custom Publication) Marketing has often been defined in terms of satisfying customers’ needs and wants. With the vast amount of information available to marketers today and the emphasis on relational marketing, marketers are in more of a position to suggest needs and wants to the public. Certainly, not all consumers have all the needs and wants suggested by society today. Marketers should understand that when it comes to resisting the pressure to conform, that individuals are and can be weak in their resolve. Marketers must take an ethical position to only market to those consumers able to purchase their products.
REFERENCES: 1) Business Knowledge Centre- NetMBA – www.netmba.com
2) BTEC Level in Business, A Person Custom Publication, p. 506
3) http://sujai-marketing.blogspot.co.uk/2010/11/distribution-customer-convenience.html
4) http://www.businessstudiesonline.co.uk/AsA2AppliedBusiness/TheoryNotes/Unit10/10_2/PDF/02%20The%20Boston%20Matrix.pdf
5) http://www.tutor2u.net/business/marketing/products_lifecycle.asp
6) Complete A-Z Business Studies, David Lines e.t., 4th edition, 2003, Hodder & Stoughton, London, Great Britain
7) http://www.more-for-small-business.com/product-positioning.html
8) http://www.studymode.com/essays/How-Buyer-Behavior-Affects-Marketing-Activities-1564919.html
9) http://brainmass.com/business/marketing/81536
10) http://www.entrepreneur.com/encyclopedia/target-market
ESSAY
Question 01-4.2.- What differences are there if you market your product and services to an organization? There have to be asked is there any difference between B2C and B2B. If there have differences to explain what are they. When a consumer buy a product for $ 8, an organization can buy the same product but for $800 because it will buy many quantities of that product. This is the main difference. Like everywhere the restaurant has to think about the product, price, place of selling, people the all Marketing Mix such as B2C. For example the product will be the same but because it needs to be made for a short time big order, the restaurant could prepare the order earlier and to freeze them to not slows the other work. The price has to be different. When you work with organization there has to be known that the organization is potential regular customer, who needs to be served properly because that customer will bring to the restaurant profits as 100 normal customers. A market rule is that when a client wants to buy more items he always wants a discount for that. That is why “PizzaDelique” make the same strategy. To build a long- term relationship with the organization-client, the restaurant makes its own methods to attract the customer. People that are going to work with the organization- client are not going to be the same staff, who works with the customers from B2C. There are another people, who are making the decisions about how many of the product will be sold, what would be the rate of a discount for quantity of the product and to make different offers to attract more organizations to work with. B2B can be if “PizzaDelique” starts to work with Arsenal Hostel. Two organizations that will make a contract about their relations and the rate that the restaurant would pay for taking customers from the hostel. The business needs are more complex. There have a logistic process, which includes purchasing, inventory, invoices, payments and other. Today B2B marketing experts share in all stages of the sales process, which includes:
Engaging the market using digital channels such as email marketing.
Targeted messaging that moves them along the evaluation process.
Understanding the signals that indicate when a buyer is ready to speak with a salesperson.
Providing salespeople with the tools they need to demonstrate the value of the product.
(http://www.eloqua.com/resources/best-practices/b2b-marketing.html)
Question 02-4.3.- What would be different from international marketing to domestic marketing? Domestic Marketing means selling within one 's own country. This is the first area where the organization markets its products. Because of the market, customer needs, geography, demographics, and distribution methods are likely familiar, it 's often the easiest place for companies to launch a product. The seven P 's of marketing - product, price, place, promotion, people, process and physical environment- are often easier for companies to determine within the domestic market. International marketing means to offer one 's goods or services worldwide. Most companies begin marketing their products within their country, and expand to the global market to capture greater market share and open up new ways for sales. (http://business.lovetoknow.com/wiki/Global_and_Domestic_Marketing) There are many differences between international and domestic marketing. One of them is the sovereign Political entities. Each country has political entity and the product had to move actoss national boundaries. For example if “PizzaDelique” wants to open a restaurant in Turkey there may have problems with the meat. The pork meat is prohibited in that country so the product, which are made from pork should be recreated with another meat that Turkish people would like. Each country has its own legal system is different for each country. If a businessman wants to make his business in another country, he should make a good research to understand which are the legal ways to do it. There have cultural differences that one business should pay attention. The restaurant choose the Italian and Spanish culture within UK, and the English people` s culture is similar to theirs. If “PizzaDelique” wants to open the same restaurant in Turkey it has to change the culture as well. The restaurant should make a culture similar to the Turkish one. In domestic marketing there is only one culture. In the national marketing there are many languages and different cultures. The currency is another difference between both marketing. In the domestic marketing the currency is only in Pounds. In the international there are a lot, for example there will be Turkish Lira and Euro if the restaurant wants to share the business in Europe. Advertising will be different as well. In domestic marketing the advertisement is by fliers, newspapers and magazines as it said earlier. If the business goes international the advertisement should be in larger scales. To advertise something new usually costs more money from domestic advertisement. There have a transport costs. If there is an opportunity that all needed products can be bought from an area near the restaurant, this can be low costs and profitable opportunity. Otherwise the transport costs can be very high. Another difference can be the procedures and documentations. Each country has its own procedures that are required to start a business. It can be a big risk if the restaurant has less knowledge about the needed documentation. In domestic marketing there is stable business environment, but at international marketing there is instable business environment and more risk to realization. (BBTEC, Higher National Diploma, Business Study Guide, A Pearson Company, Henry Ling, Dorset Press, Dorchester, DT1 1HD, 2010, Great Britain)
REFERENCES: 1. http://www.eloqua.com/resources/best-practices/b2b-marketing.html
2. http://business.lovetoknow.com/wiki/Global_and_Domestic_Marketing
3. BBTEC, Higher National Diploma, Business Study Guide, A Pearson Company, Henry Ling, Dorset Press, Dorchester, DT1 1HD, 2010, Great Britain
Unit No: 4 Unit Title: Marketing Principles Assignment Cover Sheet
Assignment No: 1
I hereby confirm that this assignment is my own work. I have identified and acknowledged all sources used in this assignment and have referenced according to the Harvard referencing system. I have read and understood the Plagiarism and Collusion section provided with the assignment brief and understood the consequences of plagiarizing.
Name:
Registration Date: Monday, …show more content…
July 29, 2013
1. Understand the concept and process of marketing. 1.1. Elements of the marketing process. The marketing process consist four steps. These four steps are completed with the goal of creating value for the customers. Marketing process is a procedure, doing something step by step. In marketing as it says there are four steps: Situation Analysis, Marketing strategy, Marketing Mix decisions and control. The first step is to understand customer needs and wants by marketing research. When it finds them, comes the analyzing and based on that to do a plan that would help to create the right product to the right customers. One of the best way to satisfy customer needs is to identify a strategic plan. Market research will provide specific market information that will permit the firm to select the target market segment. The marketing strategy includes segmentation, targeting, positioning the product and value. Marketing Mix decisions includes product development, pricing decisions, distribution contracts and promotional campaign. The last step is control. At this step the marketing plan has been developed. As the market changes, the Marketing Mix can be adjusted to accommodate the changes. Small change in customers` needs can change everything in Marketing Mix. The marketing process does not end with implementation – continual monitoring and adaptation is needed to fulfil customer needs over the long- term. (Business Knowledge Centre- NetMBA – www.netmba.com) The organization which is selected for this report is restaurant chain “Pizza Delique”. The chain starts from small restaurant in Blackstock Road in London and in few years it becomes one of the most popular Italian restaurants in the city. In five years there are near twenty restaurants “Pizza Delique” in London.
1.2. Evaluate the benefits and costs of a marketing orientation for the organisation. The benefits for “Pizza Delique” are that there is better relationship because of the customer` s loyalty. People love to go there because they make homemade pizzas and pastas, that have the taste of the best pizzas from small Italian village, so far away from London, and at the same time makes you feel like it is so close to you. This uniqueness gives the benefit that the restaurant makes better products from its competitors and people prefer them. At the same time with customers` feedback they develop their dishes like antipasti, they mix some Mexican dishes and are always ready to change the taste if people do not like it. That helps to grow the sales levels and to increase their profits. This is good way to present successful new product in the market. With loyalty customers “PizzaDelique” can make improvements in market position. Of course there have a lot of costs out there. One of them is the more one organization listen the customers, the more troubles can be found. This happens because customer`s demand always change and one organization never knows what customers can like tomorrow or after one week. The restaurant should be very flexible about customer` s interests. To be flexible cost a lot of money and time. To survive in the competition world is another cost that should be given much attention. The restaurant has to attract people with something that cannot find in the other restaurant. That costs money, time and imagination. 2.Be able to use the concepts of segmentation, targeting and positioning. 2.1. Show Macro and Micro environmental factors which influence marketing decisions. In the marketing process there should be seen at the organization` s situation in higher- level goals. It can be said as environmental analysis. It is about collection of data about internal and external factors which influence marketing decisions. When learning is about the situation inside the organization it is about internal audit and when learning is about the situation outside the organization, it is external audit. All the information is evaluated into strengths, weaknesses, opportunities and threats. This is SWOT analysis. This understanding helps to develop a marketing plan to leverage all those factors. (BTEC Level in Business, A Person Custom Publication, p. 506) The internal audit is Micro environment factor in the company. It covers the mission of the company, current offering, business relationships, key issues, the competitors. These factors are instrumental in the way a company makes its mission. The external audit is the Macro environment factor. This is so- called PESTEL. It includes all factors, which influence to the organizations. They are political factors, economic factors, social- culture, ecological and legal factors Micro and Macro environment factors includes as it said strengths, weaknesses, opportunities and threats. This called SWOT analysis. A strength is an internal capability that shows the most object that the organization is good at. “PizzaDelique”` s strength is homemade dishes that they present to the customers. Another strength is that they make good relationships with their customers and always listen to the feedback that customers give to them. The weaknesses are internal capability which is the weak like in the organization and make the process risky.
For example a weaknesses of the restaurant is that they change too much the products because they want to make the best product for everyone. This is risky because the customer will be confused about the exact taste of a pasta or pizza. They may like the first taste and when they order the same thing again the taste will be quite different, that they may not like. An opportunity is an external factor that the organization can experiment for higher implementation. For example, “PizzaDelique” found that health-conscious consumers are interested in their dishes. That is why the restaurant started to make healthy and low fat pastas, that are helpful to loose fat if you mix it with gym. A threat is an external factor that could depress the organizational performance. The competitors are big threat for every business. For the restaurants as well. There have a lot of Italian restaurants in London, that offer the same dishes like “PizzaDelique”. It has to find its strengths and opportunities and use them very well to overcome its …show more content…
competitor. 2.2.Propose segmentation criteria to be used for products in different markets. Market segmentation can be more efficient than traditional marketing techniques such as product differentiation. Marketers focus their advertising on specific segments, they can expect better results from each segment than they could expect from these consumer groups if treated as a whole.
Geographic location
This is a very important segment as geographic location can tell a great deal about a group. From geographic locations can tell whether people are more likely to pizzas or pastas. “PizzaDelique” is located on area that there are mixed very cultures. However most of them are Italian and Spanish. That is why the first location of the restaurant chain is very well thought out. Age
The age is another segment that is very important. A product should be designed with some age range in mind so that marketing campaigns can be targeted. For Friday and Saturday evenings the restaurant offer special menu for people between 20 and 30 years old. The menu includes pastas served with cocktails and soft drink. On Fridays and Saturdays come salsa dancers that make special Latino evenings for fun. On Sundays the restaurant offer family menu that big families can come with their small children. There have children menus that present half pizzas and children portion pastas. There have big family pizzas 20 inches. That is how one product like Italian restaurant can cover two and more segments and can be more profitable.
2.3.Choose a target strategy for the chosen product. Target is “specific group of consumers at which a company aims its products and services” (http://www.entrepreneur.com/encyclopedia/target-market ). Age Target Marketing According to "Entrepreneur" ' s website, extensive research is necessary for age or generational marketing to determine the status and living situations of consumers in a potential target group. For example, as it said earlier the age target marketing is very important for the restaurant business.
Gender-Specific Marketing
Gender-specific marketing shapes an advertising campaign. How the small business accomplishes this task depends on the outcome of the market research and gender needs within the local marketplace.
Geographic Target Marketing
Targeting a marketing campaign to meet the signature geographic demands of consumers in the marketplace can boost the organization` s importance and necessity in the minds of consumers. For example, the restaurant has summer garden where people can stay outside during their lunch. In the winter there have special heaters in front of every table to be more comfortable for the customers. (http://brainmass.com/business/marketing/81536 )
2.4. How buyer behavior affects marketing activities in different buying situations.
Consumer buying behavior is “the mental and emotional processes and the observable behavior of consumers during searching purchasing and post consumption of a product and service” (Batra & Kazmi, 2004). Consumer behavior is study of how people buy, what they buy, when they buy and why they buy. It includes the elements from psychology, sociology, anthropology and economics. With that knowledge, the restaurant will know exactly what customers are missing to increase the value, from which, the company will attract the potential customers. Target market of “PizzaDelique” includes young people who have high demand for their products because it meets their aesthetic that other products do not. By the each product, the demand and usage product is not the same so, the factors affecting their buying behavior is different. (http://www.studymode.com/essays/How-Buyer-Behavior-Affects-Marketing-Activities-1564919.html)
2.5. Propose new positioning for a selected product.
Being right on the product positioning can result in increased sales. Being wrong means it might not sell too much.
Product positioning has been described as 'winning the hearts and the minds of customers '. Great brands have long term customers (for example The Mac customers have with their Apple computers). (http://www.more-for-small-business.com/product-positioning.html)
New positioning can be more advertising in TV and radio. Near to the restaurant there have the Arsenal hostel. It is good idea to discuss with the hostel managers for the opportunity to feed the people from the hostel with special menu with bigger discount. The hostel usually has young students as quests so the price strategy should be different from the regular. The prices will be consistent with the hostel customers. So the turnover of people will always be full. The strategy will be entering a new market through, introducing existing product to a new market. As it said earlier the price strategy will be different. The aim is to cover the “one time” customers. The people are tourists so they are short- term customers. However if there is an agreement with the hostel that the restaurant will serve it for five years there is the security that the restaurant will be profitable in 50% only from the hostel in next five years. 3.Understand the individual elements of the extended Marketing Mix. 3.1.Explain how products are developed to sustain competitive advantage.
The product is “a term used by manufacturing and service businesses to indicate the goods or services they provide” (Complete A-Z Business Studies, David Lines e.t., 4th edition, 2003, Hodder & Stoughton, London, Great Britain).
The most important thing is to keep the product still “in the game”. That means that there have to be used techniques, which help to a product to develop itself in a competition. There have three techniques that can be used- generic dimension, sensual dimension and extended dimension.
The generic dimension is the size and package of the product. It is everything about how the product is going to look like. The sensual dimension is everything that you can touch and feel in a product. The last one is extended dimension, which is the benefits that come with buying a product.
“PizzaDelique” can use all those techniques. Its generic dimension can be the image of the restaurant, how it looks like. There are big advertising boards with most of the products that they serve. Because of the boards the restaurant can be seen from afar.
Sensual dimension can be the food and the drinks. The customers can taste and touch all the products it the restaurant. The last technique is the benefit that customers take with the products. They can add different taste in ordered product, they can choose half portion or bigger one, if they order two big dishes, they can take one small for free.
This is the unique sale of “PizzaDelique”. It always gives something new and something interesting for its customers. When a customer comes to order he knows that the restaurant will surprise him with something new and something good. The staff always asks the customers for a feedback, which makes people feel special.
These actually are one of the factors for developing the product. Primarily the quality of the product must be maintained still in a high level. There can be improved the packaging, for example all of the boxes to be with the name and the logo of the restaurant. There are two ways of managing the product: 1) Product- Life- Cycle, 2) The Boston Matrix.
1)Product- Life- Cycle - Is an important concept in marketing. It describes the stages of a product goes through from the beginning until the product is removed from the market. Not all products go until the final stage. Some continue to grow and others rise or fall.
Introduction – researching and developing the product, low sales level, high unit costs
Growth – when sales are increasing at their fastest rate,
Maturity – sales are near their highest, but the rate of growth is slowing down
Decline – final stage of the cycle, when sales begin to fall. (http://www.tutor2u.net/business/marketing/products_lifecycle.asp)
“PizzaDelique” is in the “growth”. There have fast growing sales, the product gains market acceptance. The market grows, profits rise but there are a lot of new competitor. The relevant strategies at the growth stage for the restaurant can include the advertising to promote the brand awareness or to go for price leadership.
2)The Boston Matrix – There is a close relationship between market share and market growth.
This is another method to develop a product. The Boston Matrix has four stages as well:
· Stars-Equivalent to “growth” stage of product lifecycle Cash Cows. There is high market share and high market growth.
· Cash Cows- Equivalent to “maturity” stage of product lifecycle. There is high market share and low market growth.
· Dogs- Negative cash flows. Equivalent to “decline” stage of product lifecycle. There is a low market share and low market growth.
· Problem Children- known as “Question Marks”. Can become stars, but investment is required. Equivalent to “introduction” stage of product life cycle. (http://www.businessstudiesonline.co.uk/AsA2AppliedBusiness/TheoryNotes/Unit10/10_2/PDF/02%20The%20Boston%20Matrix.pdf)
According The Boston Matric “PizzaDelique” is a Star. It has high market share and high market growth. It is very important to keep this stage, but is very difficult as well. There so many new competitor and the old ones are still in the market. From the management depends which stage will be the next- the Cash Cows or The
Dogs. 3.2.How distribution is going to be arranged to provide customer convenience. There are two types of distribution- direct and indirect. Decisions with respect to distribution channel focus on making the product available in places where customers expected to shop for them to satisfy their needs.
Depending on the nature of the product, marketing management decides to put into place an exclusive, selective, or intensive network of distribution, while selecting the appropriate wholesalers. The right choice of the factors can give a company some competitive advantage. (http://sujai-marketing.blogspot.co.uk/2010/11/distribution-customer-convenience.html) There can be used Business to Business and Business to Consumers strategies. From the one side there have costumers that are most important peace in the business. “PizzaDelique” use B 2 C and use direct distribution because it is the right strategy to provide customer convenience. 3.3.How you would set the price of the product to reflect organization` s objectives and marketing conditions. There are two ways to set the price. It depends what are you selling. There are prices for short- term sales and prices for long- term sales. For short- term sales means discounts. That includes the thing that first the product starts with low cost to attract people to buy it. They attract people to go into their store with the hope that people will buy more things that they thought. Discounts and sales are one of the main point is short- term pricing. Long- term pricing is cost- based and demand- based. Demand- based pricing is used for things that people do not have another choice like insurance and train tickets. Of course there cannot be used in restaurant business because the competitors will use that and “PizzaDelique” can die in two weeks. Cost-based pricing is to make sure that you will get the profit and you will get the cost of the product. This is the strategy that “PizzaDelique” use to make its price. 4.1.-3.4.-3.5. Recommend marketing mixes for the two different segments you have discussed, explain marketing mix with including promotion, explain the extra three elements of marketing mix.
From the main pieces of marketing mix there have more three extra and they are People, Process and Physical environment. These are the extra 3=pies in marketing mix. People refer to the customers service staff. The staff` s attitude is a reflection of what your company is. The staff need to be good to listen the customers. Process is the procedures and the mechanism of activities by which services are used. Or this is how the product will reach on the end user. Physical environment is the elements of marketing mix, which customers can actually see when they use a service. Or this is: Are the customers feel comfortable in the restaurant?
The two segments that there will be seen the all seven pies are age and geographic segment.
Age segment: the product is served in different way according the age of the costumers. There have children menu for the kids, there have a special menu for the young people which includes cocktails in the end of the week. The price is cost- based price mixed with short- term price because lunch time the restaurant does different discounts to attract the customer with the hope that they will consume more that they thought. The place is consistent of the customers that the restaurant wants to attract. It is in are that there have families and live more Italian and Spanish people that prefer this kind of food. The promotion here is in giving fliers and making contract with the Arsenal Hostel to attract their guests. People- as it said are the staff of the restaurant. They are one of the most important piece of the well-working organization. The staff` s behavior depends of what kind of customer is in from of them. If there are children they do and play games with them, if there are young people that come for a party, the staff does the party with them while they work. The process of the work in this restaurant is that managers do the contact with the customers by using different strategies like advertising and offers, do quality products, endeavor to attract more customers, build close relationship with the current customers and always improve the product all the time. Location segment: the product is selected by the place that the restaurant is located. The place is an area with Italian and Spanish people, so the product will be Italian or Spanish food in order to ensure that the business will not fail. The promotion will be made from Italian or Spanish people to attract even those who do not start to learn the English language. There can be dancers- promoters to attract young people. The restaurant`s process is mix of fun and quality in one product. The all 7- pies in both of segments are quite similar. The reason of that is that “PizzaDelique” wants to cover customers from all ages and from all area. The promotion here has very important place. There are two strategies that the restaurant can use to promote the food. They are controllable and non -controllable. The controllable strategies are the advertising, the sales promotion, the publicity. The restaurant uses all of them in maximum that they can be used. The non- controllable are the recommendations, people` s perceptions and word of mouth. The recommendations and people`s opinion cannot be controlled. At the same time that promotion is most important that the controlled one. It is free but very valued. “PizzaDelique” use different promotion techniques to keep the idea for a funny and quality restaurant in the customer minds. They use for example informative promotion technique. In this case the restaurant just informs people that the restaurant still has its own surprises for them if they come and get a lunch or dinner there. It uses a promotion above the line because it wants to attract as much people as it can, from children until grandmothers. It promotes on TV, on radio, on nearest billboards and local magazines and newspapers. (BTEC Level in Business, A Person Custom Publication) Marketing has often been defined in terms of satisfying customers’ needs and wants. With the vast amount of information available to marketers today and the emphasis on relational marketing, marketers are in more of a position to suggest needs and wants to the public. Certainly, not all consumers have all the needs and wants suggested by society today. Marketers should understand that when it comes to resisting the pressure to conform, that individuals are and can be weak in their resolve. Marketers must take an ethical position to only market to those consumers able to purchase their products.
REFERENCES: 1) Business Knowledge Centre- NetMBA – www.netmba.com
2) BTEC Level in Business, A Person Custom Publication, p. 506
3) http://sujai-marketing.blogspot.co.uk/2010/11/distribution-customer-convenience.html
4) http://www.businessstudiesonline.co.uk/AsA2AppliedBusiness/TheoryNotes/Unit10/10_2/PDF/02%20The%20Boston%20Matrix.pdf
5) http://www.tutor2u.net/business/marketing/products_lifecycle.asp
6) Complete A-Z Business Studies, David Lines e.t., 4th edition, 2003, Hodder & Stoughton, London, Great Britain
7) http://www.more-for-small-business.com/product-positioning.html
8) http://www.studymode.com/essays/How-Buyer-Behavior-Affects-Marketing-Activities-1564919.html
9) http://brainmass.com/business/marketing/81536
10) http://www.entrepreneur.com/encyclopedia/target-market
ESSAY
Question 01-4.2.- What differences are there if you market your product and services to an organization? There have to be asked is there any difference between B2C and B2B. If there have differences to explain what are they. When a consumer buy a product for $ 8, an organization can buy the same product but for $800 because it will buy many quantities of that product. This is the main difference. Like everywhere the restaurant has to think about the product, price, place of selling, people the all Marketing Mix such as B2C. For example the product will be the same but because it needs to be made for a short time big order, the restaurant could prepare the order earlier and to freeze them to not slows the other work. The price has to be different. When you work with organization there has to be known that the organization is potential regular customer, who needs to be served properly because that customer will bring to the restaurant profits as 100 normal customers. A market rule is that when a client wants to buy more items he always wants a discount for that. That is why “PizzaDelique” make the same strategy. To build a long- term relationship with the organization-client, the restaurant makes its own methods to attract the customer. People that are going to work with the organization- client are not going to be the same staff, who works with the customers from B2C. There are another people, who are making the decisions about how many of the product will be sold, what would be the rate of a discount for quantity of the product and to make different offers to attract more organizations to work with. B2B can be if “PizzaDelique” starts to work with Arsenal Hostel. Two organizations that will make a contract about their relations and the rate that the restaurant would pay for taking customers from the hostel. The business needs are more complex. There have a logistic process, which includes purchasing, inventory, invoices, payments and other. Today B2B marketing experts share in all stages of the sales process, which includes:
Engaging the market using digital channels such as email marketing.
Targeted messaging that moves them along the evaluation process.
Understanding the signals that indicate when a buyer is ready to speak with a salesperson.
Providing salespeople with the tools they need to demonstrate the value of the product.
(http://www.eloqua.com/resources/best-practices/b2b-marketing.html)
Question 02-4.3.- What would be different from international marketing to domestic marketing? Domestic Marketing means selling within one 's own country. This is the first area where the organization markets its products. Because of the market, customer needs, geography, demographics, and distribution methods are likely familiar, it 's often the easiest place for companies to launch a product. The seven P 's of marketing - product, price, place, promotion, people, process and physical environment- are often easier for companies to determine within the domestic market. International marketing means to offer one 's goods or services worldwide. Most companies begin marketing their products within their country, and expand to the global market to capture greater market share and open up new ways for sales. (http://business.lovetoknow.com/wiki/Global_and_Domestic_Marketing) There are many differences between international and domestic marketing. One of them is the sovereign Political entities. Each country has political entity and the product had to move actoss national boundaries. For example if “PizzaDelique” wants to open a restaurant in Turkey there may have problems with the meat. The pork meat is prohibited in that country so the product, which are made from pork should be recreated with another meat that Turkish people would like. Each country has its own legal system is different for each country. If a businessman wants to make his business in another country, he should make a good research to understand which are the legal ways to do it. There have cultural differences that one business should pay attention. The restaurant choose the Italian and Spanish culture within UK, and the English people` s culture is similar to theirs. If “PizzaDelique” wants to open the same restaurant in Turkey it has to change the culture as well. The restaurant should make a culture similar to the Turkish one. In domestic marketing there is only one culture. In the national marketing there are many languages and different cultures. The currency is another difference between both marketing. In the domestic marketing the currency is only in Pounds. In the international there are a lot, for example there will be Turkish Lira and Euro if the restaurant wants to share the business in Europe. Advertising will be different as well. In domestic marketing the advertisement is by fliers, newspapers and magazines as it said earlier. If the business goes international the advertisement should be in larger scales. To advertise something new usually costs more money from domestic advertisement. There have a transport costs. If there is an opportunity that all needed products can be bought from an area near the restaurant, this can be low costs and profitable opportunity. Otherwise the transport costs can be very high. Another difference can be the procedures and documentations. Each country has its own procedures that are required to start a business. It can be a big risk if the restaurant has less knowledge about the needed documentation. In domestic marketing there is stable business environment, but at international marketing there is instable business environment and more risk to realization. (BBTEC, Higher National Diploma, Business Study Guide, A Pearson Company, Henry Ling, Dorset Press, Dorchester, DT1 1HD, 2010, Great Britain)
REFERENCES: 1. http://www.eloqua.com/resources/best-practices/b2b-marketing.html
2. http://business.lovetoknow.com/wiki/Global_and_Domestic_Marketing
3. BBTEC, Higher National Diploma, Business Study Guide, A Pearson Company, Henry Ling, Dorset Press, Dorchester, DT1 1HD, 2010, Great Britain