M1 Unit 4
Mr. Mohammad Mohi Uddin Unit 4
Statement and Conformation of Own Work
Student Declaration
I have read and understood Edexcel Education’s Policy on Academic Dishonesty and Plagiarism.
I can confirm the following details:
Programmed/Qualification Name: HNC Level-4
Student ID/Registration number:
Name:
I confirm that this is my own work and that I have not plagiarized any part of it. I have also noted the assessment criteria and pass mark for assignments.
Due Date:
Student Signature:
Submitted Date:
Table of Contents Statement and Conformation of Own Work 1 Student Declaration 1 Task 1 3 1.1 The marketing process consists of various elements. Using a working example of your own choice illustrate this. (Outcome1.1) 3 1.2Business can develop new products based on a marketing oriented approach. What benefits and costs are associated with this approach for TEASCO? (Outcome1.2) 3 Task 2 4 2.1 Contemporary changes that occur within the macro and micro environment heavily influences marketing decisions. Using the case study illustrate this. (Outcome2.1) 4 2.2 Looking at market segmentation principles, propose a segmentation criteria to be used in TESCO’s for their products in different markets. …show more content…
(Outcome2.2) 5 2.3 Select a product/service from TESCO’s range and propose an appropriate targeting strategy to help boost sales for TESCO’s (Outcome 2.3) 5 2.4 Buyers behaviour affects an organization’s Marketing Strategy. Using a working example of your choice demonstrate this in terms of different buying situations. (Outcome 2.4) 6 2.5 Using an organization of your choice pick a product/service and suggest a new improved; marketing position and the methods need to be employed. (Outcome 2.5) 6 Task 3 7 3.1 Certain products/services develop and sustain a competitive advantage over a long period of time, using a product/service with such attributes, explain how and why. (Outcome 3.1) 7 3.2 Customer convenience is a very important factor in marketing. Using the example of case study explain how TESCOS distribution is arranged in a particular way to facilitate this (Outcome 3.2) 7 3.3 An organization’s objectives dictate how prices are set in balance with market condition. Using TESCOS or any organizations of your choice illustrate this. (Outcome 3.3) 8 3.4 Promotional activity is essential to achieve and organizations marketing objectives. Using TESCO’s example show how promotional activity is integrated into its marketing objectives. (Outcome 3.4) 8 3.5 The marketing mix is an important concept. Why has there been an emergence of additional elements (extended marketing mix)? (Outcome 3.5) 8 Task 4 9 4.1 Propose 2 separate marketing mixes for 2 different segments in the consumer markets, using products/services from TESCO 's. (Outcome 4.1) 9 4.2 Marketing tactics used on a customer is different from marketing tactics used for a business. Using an example illustrate this (Outcome 4.2) 10 4.3 Marketing a product/service internationally would employ slightly different methods than nationally, using a working example show how. (Outcome 4.3) 11 References 11
Task 1 1.1 The marketing process consists of various elements. Using a working example of your own choice illustrate this. (Outcome1.1)
Marketing is a process of identifying customer needs and bringing perfect solution to them. This process in overall can be divided into four distinct steps: Analysis, Planning, Implementation, and Control.
Analysis which is the first step, involves thorough research of the market using different approved techniques such as surveys, observation and so on. This market research helps to generate information in both qualitative and quantitative forms. Based on this research organizations try to figure out suitable opportunities for themselves. Once found, the organizations start building and comparing alternative plans to avail those opportunities. After the selection of a suitable plan, organizations opt for the implementation stage. This is yet not the end of marketing process. A control is followed by implementation which is conducted by the organizations to measure their product performance in terms of customer satisfaction.
TESCO used the same process which helped it to gain first mover advantage in online retailing business with its Tesco.com
1.2Business can develop new products based on a marketing oriented approach. What benefits and costs are associated with this approach for TEASCO? (Outcome1.2)
In marketing oriented approach organizations opt for developing new products on the basis of customer demand rather than the perception of organization about its customers’ demand.
Mostly the successful businesses take this orientation. If adopted in proper measure, this approach can bring great advantages to the business. However it has development costs too. The advantages and costs of marketing oriented approach in terms of TESCO are stated below.
Advantages:
* If a new product is introduced in the market based on customer demand prior the competitors, it will generate high satisfaction among the customers regarding TESCO resulting in creation of strong brand image in the market. * Due to meeting customer needs appropriately sales of that newly developed product will increase resulting in an increase into the market share of TESCO. This will also consequently help making higher profits with sustainable customers than could be made with product-led approach. * This approach will lead to a constant market research that will help TESCO to prevent its products from being obsolete in the market and come out with new variation prior the competitors. So it is also helping TESCO to gain competitive advantage.
Costs: * The expectations of TESCO customers will be increasing due to this approach. * Due to the continuous development process the production cost will increase. * The training and motivation cost of staffs will increase. * Thus it can be easily observed that due to this process the company will be benefited for sure but it will incur some important costs too.
Thus marketing oriented approach besides having great advantages has its development costs too. Task 2
2.1 Contemporary changes that occur within the macro and micro environment heavily influences marketing decisions. Using the case study illustrate this. (Outcome2.1)
Business environment, which refers to the forces or surroundings effecting business operations, consists of two parts: Micro Environment and Macro Environment.
Micro environment consists of internal environment of organization, marketing channels, suppliers, stake holders, customers and competitors. Macro environment on the other hand consists of factors like demographic, economic, political, technological, natural and cultural.
Both the factors have impacts on the operation of TESCO as seen from the case study. First of all being a market oriented retailer TESCO needs to analyse its customers and competitors constantly. So these two micro economic factors have prominent influence on its marketing decision. In order to maintain its low pricing strategy TESCO needs to its suppliers internationally so that it gains scale economies from its large buying volumes. Macro economic factors also have great impact on it. For example the economic recession, though not been visible directly, has influenced TESCO which can be estimated by its price discounting approach. Technological influence is visible through its online retailing business and information technology driven revolution. Government rules and regulations also influence the growth of TESCO by different preventive measures. For example, super stores like TESCO like to buy lands in massive amount in order to prevent competitors from buying land beside. However government introduced law to prevent them from buying lands in bulk (Rigby, 2007 Financial Times)
So it is visible that changes in micro and macro environment affects marketing decisions either directly or indirectly.
2.2 Looking at market segmentation principles, propose a segmentation criteria to be used in TESCO’s for their products in different markets. (Outcome2.2)
A marketer can rarely satisfy everyone in market as they might have choice differences. That is the reason influencing marketers to divide the market into different segments, where each segment contains people having similar preference.
This segmentation is done by demographic, psychographic and behavioural approach. Different criteria of segmentations are as follows: * The segments should be measurable * The segments should be
accessible * The segments should be substantial or large enough for profitability * The segments should be differentiable * The segments should be actionable
Considering the lower pricing strategy of TESCO it should go for behavioural approach of segmentation to separate customers who are price sensitive. They should also focus on profitability criteria and ensure a larger market for their product so that they can manage to avail good enough profit even with their lower price strategy.
It can be sum up that Segmentation is very important factor to be considered while implementing marketing strategy.
2.3 Select a product/service from TESCO’s range and propose an appropriate targeting strategy to help boost sales for TESCO’s (Outcome 2.3)
Target marketing is more likely to selecting a smaller segment of customers from a vast sea of customers and then using effectively different marketing tools to influence them.
Among TESCO’s different product/service if we choose the online retailing then it could be suggested that TESCO target busy working people as their customers and promote their product accordingly. This working people, who do not have enough time for shopping are benefited with this virtual store idea in broader terms. I this case they can go for mobile marketing, email marketing, advertising on social networks. They can also come up with different offers such as buyers purchasing above a certain amount will get free home delivery.
It is found to be difficult to market a product among vast arena of customers without targeting a specific customer range.
2.4 Buyers behaviour affects an organization’s Marketing Strategy. Using a working example of your choice demonstrate this in terms of different buying situations. (Outcome 2.4)
Buyers’ behavior that heavily affects an organization’s marketing strategy is being influenced by different internal and external factors.
Buyers tend to behave differently in different situations. For example, when a buyer is going to simply repurchase a product, he does not think extensively. On the other hand, sometimes a modification in product or service is required by the buyer when there is extensive field to choose a brand. However for new buying decision, buyer goes for intensive research. For example, Unilever tries to consistently maintain the quality of its washing powders and cakes as they are products of less consideration by buyers once get satisfied. However their shampoo brands are regularly been modified accordance with customer choice. On the other hand when a new product is launched under its brand name extensive marketing is conducted with lots of information sharing.
So, an organization should somewhat base its marketing strategy depending on targeted buyers’ behavior.
2.5 Using an organization of your choice pick a product/service and suggest a new improved; marketing position and the methods need to be employed. (Outcome 2.5)
Positioning is an act of designing the companies offering and image into the mind of target market in order to grab maximum benefit from customers’ side for their product.
A good positioning helps building proper marketing strategy by clarifying brand essence that would be connected to the customers. If I had a chance I would prefer BMW to change their market positioning from a luxurious brand to safety concerned one.
Thus to create a strong brand image it is necessary to perfectly position a brand into the mind of customers.
Task 3
3.1 Certain products/services develop and sustain a competitive advantage over a long period of time, using a product/service with such attributes, explain how and why. (Outcome 3.1)
Competitive advantage refers to ability of an organization to outperform its competitors on the basis of a distinct attribute or set of attributes.
This competitive advantage turn into a sustainable one when, it is driven by production factors or strategy on which competitors have no access. Sustainable competitive advantage gives the power of ruling a market for longer terms.
Starbucks Coffee is leading the market for longer period. That has been possible due to location selection of its stores. They will conquer one area of city at a time and then expand in the region. Their strategy is to open store close to one another to let the storefront promote the company rather than doing extensive advertising.
Thus while enjoying competitive advantage a company must keep it into the mind that their rivals do not get the chance to match it right away to ensure long term ruling period.
3.2 Customer convenience is a very important factor in marketing. Using the example of case study explain how TESCOS distribution is arranged in a particular way to facilitate this (Outcome 3.2)
Customer convenience refers to making product/service available in such points that are easily accessible by the customers.
Customer convenience is really a factor of great importance. For example if a brand loyal customer does not find the product of interest of the same brand in convenient store then definitely he will immediately switch to the available similar product of a different brand. Thus the age long brand image will be harmed for inconvenience of time being. So it is very necessary to keep eye on customer convenience.
TESCO is also aware about this fact. In order to ensure customer convenient they have come up with the concept of neighbourhood convenient store named express. Under this concept they have come up with total 654 stores each store averaging 2200 square feet area. With day to day necessary items they also store foods focusing on higher margin to ensure maximum revenue per square feet.
Thus to ensure sustainable consumer satisfaction it is necessary to focus on customer convenience.
3.3 An organization’s objectives dictate how prices are set in balance with market condition. Using TESCOS or any organizations of your choice illustrate this. (Outcome 3.3)
Pricing is one of the important elements of marketing mix. Establishing a price involves assessing what a company can expect to receive in exchange for its products.
A starting point in the process is setting pricing objectives in accordance with the overall mission of the company. A company’s objectives may be as basic as ‘survival’, which means the pricing approach will be very short term and reactive. Other approaches may focus on profit maximization, return on investment, or cash flow. In a stable market when the competitive threat is weak, there may be no incentive to manage prices. Throughout the years Coca Cola has made many pricing decisions but there is no doubt that their ultimate goal is to maximize shareholder value. For example, in Indi or Pakistan, Coca Cola is focused on reducing prices of their 200ml container (cans).Coca Cola uses lower price point to penetrate new markets that are especially sensitive to price. Coca Cola does that to face the competition and to raise brand awareness among the population.
Thus in order to excel the objective of maximizing share Coca Cola set their prices.
3.4 Promotional activity is essential to achieve and organizations marketing objectives. Using TESCO’s example show how promotional activity is integrated into its marketing objectives. (Outcome 3.4)
TESCO has its very own marketing objective of establishing its strong brand image into customers’ mind by understanding and fulfilling customers’ needs and wants.
In accordance with the pre set marketing objective TESCO decides its promotional activities. One of the most prominent examples is club card issued by TESCO. It is one of the ways of showing gratitude to the loyal customer by giving them discount on daily purchases and points through which they can get cash backs.
Hence choosing an effective promotional activity is the ultimate way of achieving marketing objective.
3.5 The marketing mix is an important concept. Why has there been an emergence of additional elements (extended marketing mix)? (Outcome 3.5)
The marketing mix model can be used by the marketers as an important tool to design marketing strategy.
The marketing managers blend the four elements of marketing mix in order to generate optimal response in the target market. It is necessary to understand that marketing mix elements are controllable. They can be adjusted on frequent basis according to the preference of target market. This marketing mix consists of four elements: product, price, place, and promotion. So it is also named to be four P’s. The seven P’s are extended marketing mix where additional three items has been included to better define services marketing. The additional three items are: people, process and physical evidence.
Even though marketing mix has its core four elements, it is being extended in accordance with the demand of time.
Task 4
4.1 Propose 2 separate marketing mixes for 2 different segments in the consumer markets, using products/services from TESCO 's. (Outcome 4.1)
Marketing mix is basically combination of four controllable elements, product, price, promotion, and place which are being blend together to support building strong marketing strategy.
Here two products which are traded in TASCO are being described below in terms of marketing mix.
Marketing Mix of Pepsi
Product The main product of Pepsi Cola Company is Pepsi and its sub brands are Dew, Miranda, 7up, Pepsi Max. It also diversified into Lays.
Providing their consumers with easy-to-use, convenient and innovative containers are one of their top priorities. Package introductions they have made over the years include the industry 's first 1 ½ litre bottle; Regular, Disposable; Can. Pepsi Co. was the first company to respond to consumer preference with lightweight, recyclable, plastic bottles. These bottles are made of polyethylene terephthalate or "PET plastic," which is a form of polyester used to make strong, lightweight, shatter-resistant bottles.
Price: Pepsi prices its products similar to those of Coca-Cola in order to keep profits high. Competition is mainly based on marketing skill rather than price to help avoid costly price wars and keep profits stable. Since neither of the major manufacturers would win a price war, it is unwritten rule that the companies will follow the pricing structure of the market leader. While this amount to price fixing, there has not been any major government actions to curtail the practice so it should continue in the future.
Place: Place/distribution is a very important aspect of beverage. Pepsi distributes it products through convenient stores, super markets, retailers, online stores, restaurants and so on.
Promotion: Pepsi promotes its products in a many ways, but focuses mainly on getting products associated with entertainment icons that appeal to youth. Some other options of promotion used by them are free sampling, discounts, in store displays, gifts and cards etc.
Marketing Mix of Nescafe
Product: Nescafe which is conducting its business under the brand name of Nestle is one of the leading brands of coffee in the world. It consists of lots of variation in terms of coffee
Price: It follows premium pricing strategy to justify its product quality and brand image.
Place: Nescafe has made its availability in convenient places for its customers through its mini packs. It is also available at super stores, online retails, n different restaurants, café and so on.
Promotion: Nescafe promotes its products through television, newspapers, internet, public relations, and alliances with shopping malls, offices, sponsorship and use of renowned celebrity.
Thus marketing mix is an integral part of a marketing strategy.
4.2 Marketing tactics used on a customer is different from marketing tactics used for a business. Using an example illustrate this (Outcome 4.2)
Marketing tactics varies considering the fact that if it is being applied for a customer or for a business.
A business purchase is based on logic while the same purchase for a customer is based on emotion. A marketer focuses on logic while presenting its product/service in front of a business. However benefits and attributes are being pressed before presenting a product in front of the customer. For example, if a laptop company is selling laptops to a business, it will focus more on its core attributes, while it will focus more on colour and other physical attributes while selling it to customers.
A successful marketer tries to understand the difference and segment marketing tactics accordingly.
4.3 Marketing a product/service internationally would employ slightly different methods than nationally, using a working example show how. (Outcome 4.3)
Domestic market means the market where a company has been originated, while foreign market is the market where a company enters after covering the entire domestic market for extra benefit.
While performing into domestic market a company’s performance is considered to be confined within the national border. On the other hand when it performs in foreign market it is considered to be performing internationally. A company needs to modify its method while performing internationally as the factors existing in foreign market like culture, values, perception, and beliefs could be quite different from that of domestic one. For example, Surf Excel prepared a common bill board ad for its domestic market and Middle East. The ad was showing a dirty cloth in the left corner, a Surf Excel in the middle and a clean cloth in the right. However the Arabian people have their culture to read from right hand side rather than the common form of reading from left. So they misinterpreted the ad as a clean cloth to become dirty after a wash by surf excel.
Thus it is very important that marketing methods that are being used in domestic market is not necessarily always suitable for the international use.
References
* Principles of Marketing, Philip Kotler, Gary * International Marketing, Philip R. Cateora, John L. Graham * Google search engine * http://en.wikipedia.com
Statement and Conformation of Own Work
Student Declaration
I have read and understood Edexcel Education’s Policy on Academic Dishonesty and Plagiarism.
I can confirm the following details:
Programmed/Qualification Name: HNC Level-4
Student ID/Registration number:
Name:
I confirm that this is my own work and that I have not plagiarized any part of it. I have also noted the assessment criteria and pass mark for assignments.
Due Date:
Student Signature:
Submitted Date:
Table of Contents Statement and Conformation of Own Work 1 Student Declaration 1 Task 1 3 1.1 The marketing process consists of various elements. Using a working example of your own choice illustrate this. (Outcome1.1) 3 1.2Business can develop new products based on a marketing oriented approach. What benefits and costs are associated with this approach for TEASCO? (Outcome1.2) 3 Task 2 4 2.1 Contemporary changes that occur within the macro and micro environment heavily influences marketing decisions. Using the case study illustrate this. (Outcome2.1) 4 2.2 Looking at market segmentation principles, propose a segmentation criteria to be used in TESCO’s for their products in different markets. …show more content…
(Outcome2.2) 5 2.3 Select a product/service from TESCO’s range and propose an appropriate targeting strategy to help boost sales for TESCO’s (Outcome 2.3) 5 2.4 Buyers behaviour affects an organization’s Marketing Strategy. Using a working example of your choice demonstrate this in terms of different buying situations. (Outcome 2.4) 6 2.5 Using an organization of your choice pick a product/service and suggest a new improved; marketing position and the methods need to be employed. (Outcome 2.5) 6 Task 3 7 3.1 Certain products/services develop and sustain a competitive advantage over a long period of time, using a product/service with such attributes, explain how and why. (Outcome 3.1) 7 3.2 Customer convenience is a very important factor in marketing. Using the example of case study explain how TESCOS distribution is arranged in a particular way to facilitate this (Outcome 3.2) 7 3.3 An organization’s objectives dictate how prices are set in balance with market condition. Using TESCOS or any organizations of your choice illustrate this. (Outcome 3.3) 8 3.4 Promotional activity is essential to achieve and organizations marketing objectives. Using TESCO’s example show how promotional activity is integrated into its marketing objectives. (Outcome 3.4) 8 3.5 The marketing mix is an important concept. Why has there been an emergence of additional elements (extended marketing mix)? (Outcome 3.5) 8 Task 4 9 4.1 Propose 2 separate marketing mixes for 2 different segments in the consumer markets, using products/services from TESCO 's. (Outcome 4.1) 9 4.2 Marketing tactics used on a customer is different from marketing tactics used for a business. Using an example illustrate this (Outcome 4.2) 10 4.3 Marketing a product/service internationally would employ slightly different methods than nationally, using a working example show how. (Outcome 4.3) 11 References 11
Task 1 1.1 The marketing process consists of various elements. Using a working example of your own choice illustrate this. (Outcome1.1)
Marketing is a process of identifying customer needs and bringing perfect solution to them. This process in overall can be divided into four distinct steps: Analysis, Planning, Implementation, and Control.
Analysis which is the first step, involves thorough research of the market using different approved techniques such as surveys, observation and so on. This market research helps to generate information in both qualitative and quantitative forms. Based on this research organizations try to figure out suitable opportunities for themselves. Once found, the organizations start building and comparing alternative plans to avail those opportunities. After the selection of a suitable plan, organizations opt for the implementation stage. This is yet not the end of marketing process. A control is followed by implementation which is conducted by the organizations to measure their product performance in terms of customer satisfaction.
TESCO used the same process which helped it to gain first mover advantage in online retailing business with its Tesco.com
1.2Business can develop new products based on a marketing oriented approach. What benefits and costs are associated with this approach for TEASCO? (Outcome1.2)
In marketing oriented approach organizations opt for developing new products on the basis of customer demand rather than the perception of organization about its customers’ demand.
Mostly the successful businesses take this orientation. If adopted in proper measure, this approach can bring great advantages to the business. However it has development costs too. The advantages and costs of marketing oriented approach in terms of TESCO are stated below.
Advantages:
* If a new product is introduced in the market based on customer demand prior the competitors, it will generate high satisfaction among the customers regarding TESCO resulting in creation of strong brand image in the market. * Due to meeting customer needs appropriately sales of that newly developed product will increase resulting in an increase into the market share of TESCO. This will also consequently help making higher profits with sustainable customers than could be made with product-led approach. * This approach will lead to a constant market research that will help TESCO to prevent its products from being obsolete in the market and come out with new variation prior the competitors. So it is also helping TESCO to gain competitive advantage.
Costs: * The expectations of TESCO customers will be increasing due to this approach. * Due to the continuous development process the production cost will increase. * The training and motivation cost of staffs will increase. * Thus it can be easily observed that due to this process the company will be benefited for sure but it will incur some important costs too.
Thus marketing oriented approach besides having great advantages has its development costs too. Task 2
2.1 Contemporary changes that occur within the macro and micro environment heavily influences marketing decisions. Using the case study illustrate this. (Outcome2.1)
Business environment, which refers to the forces or surroundings effecting business operations, consists of two parts: Micro Environment and Macro Environment.
Micro environment consists of internal environment of organization, marketing channels, suppliers, stake holders, customers and competitors. Macro environment on the other hand consists of factors like demographic, economic, political, technological, natural and cultural.
Both the factors have impacts on the operation of TESCO as seen from the case study. First of all being a market oriented retailer TESCO needs to analyse its customers and competitors constantly. So these two micro economic factors have prominent influence on its marketing decision. In order to maintain its low pricing strategy TESCO needs to its suppliers internationally so that it gains scale economies from its large buying volumes. Macro economic factors also have great impact on it. For example the economic recession, though not been visible directly, has influenced TESCO which can be estimated by its price discounting approach. Technological influence is visible through its online retailing business and information technology driven revolution. Government rules and regulations also influence the growth of TESCO by different preventive measures. For example, super stores like TESCO like to buy lands in massive amount in order to prevent competitors from buying land beside. However government introduced law to prevent them from buying lands in bulk (Rigby, 2007 Financial Times)
So it is visible that changes in micro and macro environment affects marketing decisions either directly or indirectly.
2.2 Looking at market segmentation principles, propose a segmentation criteria to be used in TESCO’s for their products in different markets. (Outcome2.2)
A marketer can rarely satisfy everyone in market as they might have choice differences. That is the reason influencing marketers to divide the market into different segments, where each segment contains people having similar preference.
This segmentation is done by demographic, psychographic and behavioural approach. Different criteria of segmentations are as follows: * The segments should be measurable * The segments should be
accessible * The segments should be substantial or large enough for profitability * The segments should be differentiable * The segments should be actionable
Considering the lower pricing strategy of TESCO it should go for behavioural approach of segmentation to separate customers who are price sensitive. They should also focus on profitability criteria and ensure a larger market for their product so that they can manage to avail good enough profit even with their lower price strategy.
It can be sum up that Segmentation is very important factor to be considered while implementing marketing strategy.
2.3 Select a product/service from TESCO’s range and propose an appropriate targeting strategy to help boost sales for TESCO’s (Outcome 2.3)
Target marketing is more likely to selecting a smaller segment of customers from a vast sea of customers and then using effectively different marketing tools to influence them.
Among TESCO’s different product/service if we choose the online retailing then it could be suggested that TESCO target busy working people as their customers and promote their product accordingly. This working people, who do not have enough time for shopping are benefited with this virtual store idea in broader terms. I this case they can go for mobile marketing, email marketing, advertising on social networks. They can also come up with different offers such as buyers purchasing above a certain amount will get free home delivery.
It is found to be difficult to market a product among vast arena of customers without targeting a specific customer range.
2.4 Buyers behaviour affects an organization’s Marketing Strategy. Using a working example of your choice demonstrate this in terms of different buying situations. (Outcome 2.4)
Buyers’ behavior that heavily affects an organization’s marketing strategy is being influenced by different internal and external factors.
Buyers tend to behave differently in different situations. For example, when a buyer is going to simply repurchase a product, he does not think extensively. On the other hand, sometimes a modification in product or service is required by the buyer when there is extensive field to choose a brand. However for new buying decision, buyer goes for intensive research. For example, Unilever tries to consistently maintain the quality of its washing powders and cakes as they are products of less consideration by buyers once get satisfied. However their shampoo brands are regularly been modified accordance with customer choice. On the other hand when a new product is launched under its brand name extensive marketing is conducted with lots of information sharing.
So, an organization should somewhat base its marketing strategy depending on targeted buyers’ behavior.
2.5 Using an organization of your choice pick a product/service and suggest a new improved; marketing position and the methods need to be employed. (Outcome 2.5)
Positioning is an act of designing the companies offering and image into the mind of target market in order to grab maximum benefit from customers’ side for their product.
A good positioning helps building proper marketing strategy by clarifying brand essence that would be connected to the customers. If I had a chance I would prefer BMW to change their market positioning from a luxurious brand to safety concerned one.
Thus to create a strong brand image it is necessary to perfectly position a brand into the mind of customers.
Task 3
3.1 Certain products/services develop and sustain a competitive advantage over a long period of time, using a product/service with such attributes, explain how and why. (Outcome 3.1)
Competitive advantage refers to ability of an organization to outperform its competitors on the basis of a distinct attribute or set of attributes.
This competitive advantage turn into a sustainable one when, it is driven by production factors or strategy on which competitors have no access. Sustainable competitive advantage gives the power of ruling a market for longer terms.
Starbucks Coffee is leading the market for longer period. That has been possible due to location selection of its stores. They will conquer one area of city at a time and then expand in the region. Their strategy is to open store close to one another to let the storefront promote the company rather than doing extensive advertising.
Thus while enjoying competitive advantage a company must keep it into the mind that their rivals do not get the chance to match it right away to ensure long term ruling period.
3.2 Customer convenience is a very important factor in marketing. Using the example of case study explain how TESCOS distribution is arranged in a particular way to facilitate this (Outcome 3.2)
Customer convenience refers to making product/service available in such points that are easily accessible by the customers.
Customer convenience is really a factor of great importance. For example if a brand loyal customer does not find the product of interest of the same brand in convenient store then definitely he will immediately switch to the available similar product of a different brand. Thus the age long brand image will be harmed for inconvenience of time being. So it is very necessary to keep eye on customer convenience.
TESCO is also aware about this fact. In order to ensure customer convenient they have come up with the concept of neighbourhood convenient store named express. Under this concept they have come up with total 654 stores each store averaging 2200 square feet area. With day to day necessary items they also store foods focusing on higher margin to ensure maximum revenue per square feet.
Thus to ensure sustainable consumer satisfaction it is necessary to focus on customer convenience.
3.3 An organization’s objectives dictate how prices are set in balance with market condition. Using TESCOS or any organizations of your choice illustrate this. (Outcome 3.3)
Pricing is one of the important elements of marketing mix. Establishing a price involves assessing what a company can expect to receive in exchange for its products.
A starting point in the process is setting pricing objectives in accordance with the overall mission of the company. A company’s objectives may be as basic as ‘survival’, which means the pricing approach will be very short term and reactive. Other approaches may focus on profit maximization, return on investment, or cash flow. In a stable market when the competitive threat is weak, there may be no incentive to manage prices. Throughout the years Coca Cola has made many pricing decisions but there is no doubt that their ultimate goal is to maximize shareholder value. For example, in Indi or Pakistan, Coca Cola is focused on reducing prices of their 200ml container (cans).Coca Cola uses lower price point to penetrate new markets that are especially sensitive to price. Coca Cola does that to face the competition and to raise brand awareness among the population.
Thus in order to excel the objective of maximizing share Coca Cola set their prices.
3.4 Promotional activity is essential to achieve and organizations marketing objectives. Using TESCO’s example show how promotional activity is integrated into its marketing objectives. (Outcome 3.4)
TESCO has its very own marketing objective of establishing its strong brand image into customers’ mind by understanding and fulfilling customers’ needs and wants.
In accordance with the pre set marketing objective TESCO decides its promotional activities. One of the most prominent examples is club card issued by TESCO. It is one of the ways of showing gratitude to the loyal customer by giving them discount on daily purchases and points through which they can get cash backs.
Hence choosing an effective promotional activity is the ultimate way of achieving marketing objective.
3.5 The marketing mix is an important concept. Why has there been an emergence of additional elements (extended marketing mix)? (Outcome 3.5)
The marketing mix model can be used by the marketers as an important tool to design marketing strategy.
The marketing managers blend the four elements of marketing mix in order to generate optimal response in the target market. It is necessary to understand that marketing mix elements are controllable. They can be adjusted on frequent basis according to the preference of target market. This marketing mix consists of four elements: product, price, place, and promotion. So it is also named to be four P’s. The seven P’s are extended marketing mix where additional three items has been included to better define services marketing. The additional three items are: people, process and physical evidence.
Even though marketing mix has its core four elements, it is being extended in accordance with the demand of time.
Task 4
4.1 Propose 2 separate marketing mixes for 2 different segments in the consumer markets, using products/services from TESCO 's. (Outcome 4.1)
Marketing mix is basically combination of four controllable elements, product, price, promotion, and place which are being blend together to support building strong marketing strategy.
Here two products which are traded in TASCO are being described below in terms of marketing mix.
Marketing Mix of Pepsi
Product The main product of Pepsi Cola Company is Pepsi and its sub brands are Dew, Miranda, 7up, Pepsi Max. It also diversified into Lays.
Providing their consumers with easy-to-use, convenient and innovative containers are one of their top priorities. Package introductions they have made over the years include the industry 's first 1 ½ litre bottle; Regular, Disposable; Can. Pepsi Co. was the first company to respond to consumer preference with lightweight, recyclable, plastic bottles. These bottles are made of polyethylene terephthalate or "PET plastic," which is a form of polyester used to make strong, lightweight, shatter-resistant bottles.
Price: Pepsi prices its products similar to those of Coca-Cola in order to keep profits high. Competition is mainly based on marketing skill rather than price to help avoid costly price wars and keep profits stable. Since neither of the major manufacturers would win a price war, it is unwritten rule that the companies will follow the pricing structure of the market leader. While this amount to price fixing, there has not been any major government actions to curtail the practice so it should continue in the future.
Place: Place/distribution is a very important aspect of beverage. Pepsi distributes it products through convenient stores, super markets, retailers, online stores, restaurants and so on.
Promotion: Pepsi promotes its products in a many ways, but focuses mainly on getting products associated with entertainment icons that appeal to youth. Some other options of promotion used by them are free sampling, discounts, in store displays, gifts and cards etc.
Marketing Mix of Nescafe
Product: Nescafe which is conducting its business under the brand name of Nestle is one of the leading brands of coffee in the world. It consists of lots of variation in terms of coffee
Price: It follows premium pricing strategy to justify its product quality and brand image.
Place: Nescafe has made its availability in convenient places for its customers through its mini packs. It is also available at super stores, online retails, n different restaurants, café and so on.
Promotion: Nescafe promotes its products through television, newspapers, internet, public relations, and alliances with shopping malls, offices, sponsorship and use of renowned celebrity.
Thus marketing mix is an integral part of a marketing strategy.
4.2 Marketing tactics used on a customer is different from marketing tactics used for a business. Using an example illustrate this (Outcome 4.2)
Marketing tactics varies considering the fact that if it is being applied for a customer or for a business.
A business purchase is based on logic while the same purchase for a customer is based on emotion. A marketer focuses on logic while presenting its product/service in front of a business. However benefits and attributes are being pressed before presenting a product in front of the customer. For example, if a laptop company is selling laptops to a business, it will focus more on its core attributes, while it will focus more on colour and other physical attributes while selling it to customers.
A successful marketer tries to understand the difference and segment marketing tactics accordingly.
4.3 Marketing a product/service internationally would employ slightly different methods than nationally, using a working example show how. (Outcome 4.3)
Domestic market means the market where a company has been originated, while foreign market is the market where a company enters after covering the entire domestic market for extra benefit.
While performing into domestic market a company’s performance is considered to be confined within the national border. On the other hand when it performs in foreign market it is considered to be performing internationally. A company needs to modify its method while performing internationally as the factors existing in foreign market like culture, values, perception, and beliefs could be quite different from that of domestic one. For example, Surf Excel prepared a common bill board ad for its domestic market and Middle East. The ad was showing a dirty cloth in the left corner, a Surf Excel in the middle and a clean cloth in the right. However the Arabian people have their culture to read from right hand side rather than the common form of reading from left. So they misinterpreted the ad as a clean cloth to become dirty after a wash by surf excel.
Thus it is very important that marketing methods that are being used in domestic market is not necessarily always suitable for the international use.
References
* Principles of Marketing, Philip Kotler, Gary * International Marketing, Philip R. Cateora, John L. Graham * Google search engine * http://en.wikipedia.com