Unit 2 Marketing Principle Assignment Help

Some of the factors that that influence distributor methods are

  1. Buyer expectation: Expectation of buyers must be met in term of receiving quality products from the manufacturer. If the buyer is happy with a product, he/she will always demand for more of the products but if the failed to achieve the quality requirements from the buyer/consumers, this will affect the distribution.
  • Buyer’s needs to be met by the distributors, buyer will never condone any sort of disappointment from a distributor. Every buyer wants their needs to be met.
  • Location of customer base, the location of customer services base will also affect the distribution channel if there is no access to which the distributor could reach the buyer. This may be due to bad road or when there are no motor able ways. Kotler, p (2003)
  • Warehousing/Inventory, this could influence the distribution channels if the warehouse is far from where the product could reach the consumers or if the warehousing is not big enough to take a large quantity of goods at a particular point in time, it will be difficult for the distributor to fulfil their own obligations. (Kotler, 2003)

 Price is the sum of money charged for a product by its seller, also price is an exchange that takes place between two individuals. Price is the only element in the marketing mix that produces revenue; all other elements represent costs. Price is also one of the most flexible marketing mix elements.

Perceived price is the consumer’s overall assessment of the product based on what is perceived and given.

This is a method often used by a company to set its selling price.

 pricing strategies is a way deduce by an organisation at finding an optimum price for their products. This could be achieved when there is demand for the product in respective of the competing products.

Penetration Pricing: This can be said to be in the form of a promotion to penetrate the market system. The products are set at low price to gain customers and foothold on to the market and the price will be raised after this is achieved. This type of method was being used by Sky Telecom for new customers subscribing for their services. (Armstrong, G, and Kotler,2007).

Skimming Pricing: Price skimming involves selling goods or products at a higher price after production or charging higher price to customer with this, company makes fewer sales and break even because it has a substantial competitive advantage an example is an Apple iPhone. (Armstrong, G, and Kotler,2007).

Economy Pricing: The price being very low compared to the competitor with this the cost that will take in marketing and promoting the product will be low. Because the services are cheap this tends to attract a lot of customers. Example of such pricing strategy could be found with most supermarket with economy brands or values (Armstrong, G, and Kotler,2007).

Psychological pricing: This is used when the marketer wants the consumer to respond on an emotional, rather than rational basis. For example, Charging different prices for items. Point Perspective (PPP) 0.99 pence not 1 pound. (Armstrong, G, and Kotler,2007).

Promotional pricing: This is used to promote a product or services using sales promotion which include buy one get one free or buy one get the one half price, getting some money off the products by using vouchers or sometime cash discounts. Armstrong, G, and Kotler,2007).

Premium Pricing: This is when a high price is used when the brand is one of its kind and of high quality. This method is used when overwhelming competitive advantage exists and the marketer is safe in the knowledge that they can charge higher price. (Armstrong, G, and Kotler,2007).

Geographical (Segmented)pricing: This is a method of pricing in which a particular product is priced differently taking into consideration the type of customer, location, delivery time and payment terms. Some company products pricing differs from one country to another for example Apple products. (Armstrong, G, and Kotler,2007).

Cost -Plus/Based Pricing: Cost-plus/Based-Pricing is the most used method by the company. The company added all the expensive related to the production of the products which includes the raw materials, transport cost, warehousing, staff cost and a percentage profit will be added to give the selling price (Armstrong, G, and Kotler,2007).

Product Mix Pricing: Here, company combine several of their products into one package and sell them at a reduced price instead of selling them separately. This strategy of pricing is most common nowadays. An examples could be found with Sky Company that render sky Television, Broadband, Telephone lines in bundles. (Armstrong, G, and Kotler,2007).

Ethical Issue in Pricing

Price -fixing or Cartels: This happened when sellers or people that participate in a market plan to buy or sell a product at a fixed price without allowing the price to come naturally. This type of pricing affect consumers because there is no room for bargaining as price has been fixed to a minimum by the producers of such commodities.

We have some cases where in 2003 Barclays Bank was fined for rigging libor interest rates for Barclays mortgage. (Armstrong, G, and Kotler,2007).

Promotion is concerned with communication between the seller and the buyer. This is also a way in which company uses to reach a targeted people where some messages are passed across so as to achieve a specific objective. Promotions play an important role in marketing because it communicates products or services to target customers by raising an awareness of the product or brand to generate sales.

promotion mix refers to the specific blend of advertising, sales promotion, public relations, personal selling and direct marketing.  (Armstrong, G, and Kotler,2007).

Some Examples of Major Elements of Organisation’s Promotional Mix

Promotional Mix: Above -the – Line (ABL): This is a form of paid for an advertisement that is paid for by the company aimed at mass marketing. An example of this method includes the advertisement in the Television, Magazines, Radio and Newspapers This method will reach a large number of the populace.

An example is Argos. (Armstrong, G, and Kotler,2007).

Promotional Mix – Below -the -Line (BTL): This is used where the company has little or no money for media advertisement, their budget is very low and they are struggling to reach target audience. They tend to use various promotional elements such as coupons, direct selling, exhibitions and displays and personal selling. (Armstrong, G, and Kotler,2007).

Personal Selling: This is the personal presentation of the company’s product for sales for the purpose of building the strength of customers and have the good relationship with them.

Direct Marketing: This involves making direct connections with carefully targeted individual consumers by using direct mail, telephone, e-mail and the internet to communicate directly with specific customers. The catalogues could be given to people or insert in the mailbox.

Push Versus Pull Strategies: This involves a way of promoting a product heavily to members of a distribution channel e.g. wholesalers, retailers. They do this so that the wholesaler and retailers who are close to the customers will promote heavily to their own customers.

In this way, products are pushed through the distribution channel. (Armstrong, G, and Kotler,2007).

Dr. Philip Kotler defines marketing as the service and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. It is also a process of responsible for identifying, anticipating and satisfying customer requirements. (Kotler 2005)

Marketing Mix: Dr. Philip Kotler defines Marketing mix as the set of controllable tactical marketing tools that the firm blends to produce the response it wants in the target market (Kotler 2005).

The three extended marketing mix are the People, Physical Evidence, and Process.

These are discussed below:

The People: The people are referring to the employees delivering the service to the target customer. In every establishment, the role of the frontline staff is very essential.

Staffs, most especially the frontline must be well trained to suit their job roles, they must be well mannered, motivated, well behaved and wear an appropriate clothing.

An example could be seen with most staffs of the outlet of mobile companies.

Process: Process refers to how the service is delivered The way and manner services are delivered is crucial in satisfying the customers. In an establishment, customers take into consideration their experience when they first knew the company all through to when they actually made a purchase from the company. A good establishment should provide a supportive services guidelines and a procedure which all staffs must follow to deliver customer service.

In delivering a service, customers should be informed of the waiting time which must not be exceeded. If a customer was not well attended to or had a bad experience when transacting a business with an establishment, such customers will tell people the bad experience encountered which other people which will make other people not to patronise such establishment. If the organisation frontline staff performed woefully when transacting or rendering a service to a customer this will affect the sales of such establishment.

Physical Evidence: This is the physical environment of the business. This is very important because of the influence it gives to customers about the organisation. The environment in which a business transaction would take place must be clean, well decorated and tidy when customers sees the international environment, they will be reassured and this will have reduced the uncertainty in their mind.

Dr. Philip Kotler defines marketing as the service and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. It is also a process of responsible for identifying, anticipating and satisfying customer requirements.

Marketing Mix: Dr. Philip Kotler defines Marketing mix as the set of controllable tactical marketing tools that the firm blends to produce the response it wants in the target market (Kotler 2005). The marketing mix is well known in every marketing aspect because of its incorporation of the four Ps’ which is Place, Price, Promotion and product.

The three extended marketing mix are the People, Physical Evidence, and Process.

All this are discussed below.

The People: The people are referring to the employees delivering the service to the target customer. In every establishment, the role of the frontline staff is very essential.

The way and manner the staff treats their customer will have impact either positive or negative effects on the establishment. The reputation of any establishment is in the hand of the staff and it also portrays the image of the establishment.

Staffs, most especially the frontline must be well trained to suit their job roles, they must be well mannered, motivated, well behaved and wear an appropriate clothing as it is well known that when a customer is happy with the service received in an establishment he or she would advocate for that business with the word of mouth.

An example could be seen with most of the outlet of mobile companies.

Process: Process refers to how the service is delivered or given. The way and manner a service is delivered are crucial in satisfying the customers. In an establishment, customers take into consideration their experience when they first knew the company all through to when they actually made a purchase from the company. A good establishment should provide a supportive services guidelines and a procedure which all staffs must follow to deliver customer service,

Nowadays, most customers checked the reviews of any company before patronising or transacting any business with them. If the organisation frontline staff performed woefully when transacting or rendering a service to a customer this will affect the sales of such establishment.

Physical Evidence: This is the physical environment of the business. This is very important because of the influence it gives to customers about the organisation. The environment in which a business transaction would take place must be clean, well decorated and tidy. The first impression they say the last longer

 Also, (Kotler 2005) states that service company must work on distinguishing their service by creating different images, through symbols or branding to gain the lasting advantage over competitors with lacklustre images. (Dr Philip Kotler, 2005)

 A market is a place where demand and supply are met. It is also a place where buyers and sellers interact to sells and buy a good or product where the money will exchange hands. (Dr. Philip Kotler, 2005)

 Market Segmentation involves dividing a market into a distinct group. There are four key bases used for segmenting markets.

Market segmentation is done based on Geographic, Demographic, Psychographic, and Behavioural. (Dr. Philip Kotler, 2005)

In planning market mixes for two different segments, I will be citing British Airways as an example for a flight from London Heathrow airport to Murtala Mohammed international Airport, Lagos Nigeria.

  1. Product: Nonstop Flight from Heathrow Airport, London to Murtala Mohammed International Airport Lagos, Nigeria lasting Six hours.

2.Price: Economy air flight departing London Heathrow Airport on the 18th of July,2016 to Murtala Mohammed, Lagos returning on the 31st of July,2016 to Heathrow would cost £1,064.85 while when using the service of a First class it would cost £7,499.85 to and from Murtala Airport Lagos, Nigeria

3.Place: The services for both could be obtained from Travel Agencies across the United Kingdom or the airline website.

4.Promotion: The Economy passengers would only have allowed carrying 2 bags that weighs 23kg each, one handbag plus a cabin bag.

The first class passengers would be allowed to carry 3 bags that weighs 32kg each, 1 handbag, plus 1cabin bag. The first class passengers own their private, spacious suite, a fully flat bed with mattress and duvet, delicious and indulgent dining, access to luxurious lounges and spa treatments, exclusive and attentive service.

  1. People: All frontline people which includes the booking personnel, stewards, crew, and security.

The economy passenger will have to queue to be attended to at the desk prior to check in while the First class passengers will receive a warmth welcome without a queueing.

6.Process: This is applicable to both passengers. The process involves the booking which may be from the Airline website or with the travel agent to their destinations.

7.Evidence: Evidence will involve the I-T system whereby the scan record, payment record, and card checking will be done.

This is applicable to Economy and First Class Passengers.

 There is marketing which involved Business to Business (B2B) and Business to consumer (B2C).

Either which way the aim is to market a product and get money at the end of the day.

B2B is the selling of products by an organisation to another organisation that will be used in the production of goods, the products sold could be in the form of raw materials that will undergo production activities to produce an end product which will be ready to be used.

Examples is a cocoa company selling cocoa powder to a confectionary company.

 B2C is the selling of a manufactured product to an end user which is the customers. In a nutshell, B2C is Business that sell to consumers.

For example, a cocoa powder being used to make chocolate drink or confectionaries.

The following are the difference between B2B and B2C marketing.

Buying Procedure: In B2B, the purchase needs some formalisation which comprises of the top hierarchy in both organisations where an agreement needs to be made between both Businesses. Contracts need to be signed in order to know the term and condition of sales. while in B2C there is no contract between them, buyers could choose whatever they like and make the purchase in a place that suits them the most. The price is mostly fixed without any negotiation. The decision to make the purchase will be taken by an individuals or some member of a family. (Dr. Philip Kotler, 2005)

Price Decisions: In B2B pricing decisions are based on negotiated terms by the top hierarchy of each business. An agreement must be reached which will be suitable for both parties before it could be signed. While in B2C there is nothing like a meeting with the top hierarchy of any establishment, no contract to sign and the price is fixed without any chance for negotiation.

The channel of Delivery: Distribution channel is a way in which the organisation moved products to business users or consumers. In B2B channel of distribution is short and more direct compared to B2C. This is so because B2B buys materials in large quantity, this involved limited channel of delivery. (Dr. Philip Kotler, 2005)

The length of marketing Period: This is the time it takes to negotiate the buying of the materials. In B2B the length of marketing period is long due to so many processes involved in negotiating the price, testing of the materials and signing of the agreement papers. while in B2C all these processes are not involved in Business to consumers. The B2C will just walk to any shop of its choice and pick any items that suit him or her.

Estimation of Brand: In B2C consumers go for brands which most suit them and they are always loyal to any brand they have had in the past that was money for value to them. While B2B doesn’t reckon with the brand they go for materials that are money savers that will increase their profit margins.

The length of Marketing Period: In B2B, the length of marketing period is high due to so many things to take into consideration before a decision could be reached. The specification, the material testing, price negotiation will be taken into consideration before finally signing the contract while in B2C, the consumers will just do some online research about the product and either visit a store to make the purchase, by phone or online. (Dr. Philip Kotler, 2005)

 International markets involve selling of goods to buyers in another county which includes the consumers, producers and resellers. It is also involved the application of marketing mix to various countries.

Domestic marketing involves the selling of a products locally within the country the product is manufactured. It is also a place where the supply and demand of a product is limited to a country.

Business goes international because:

  • Economies of scale: Majority of business goes to international market in order to increase their sales as well as get known internationally. International market has a wide range of people to sell their product there by maximising their profit.
  • Growth Opportunities: An organisation that transact business abroad has grown a niche for themselves. Opportunities would be coming their way.
  • Globalisation: This is when firm made a wide ranges of products available to large customer base around the world.

Before one could assess international some factors must be taken into consideration:

Economic – one needs to take into consideration the GDP, Monetary, Human resources and fiscal policy.

Competitive Advantage – Cultural understanding or similarities language used. The culture of each country differs from one another and this must be taken into consideration. Also language could be a barrier which may lead to communication breakdown.

  • Risk Spread – Government policy could result to a disaster; this must be taken into consideration. Political stability is important because with a country being stable transactions cannot run smoothly. (Kotler,2013)

Factors affecting international markets are:

  • Standardisation: Is the process of making one global products accepted internationally without undertaking any major modification. the standardised nature of the product helps manufacturers to reap economies scale. (Kotler,2013)
  • International markets involve selling of goods to buyers in another county which includes the consumers, producers and resellers. It is also involved the application of marketing mix to various countries while domestic marketing involves the selling of a products locally within the country the product is manufactured. It is also a place where the supply and demand of a product is limited to a country (Kotler,2013)

REFERENCE

Armstrong, G, and Kotler, p (2007).  Marketing: An introduction (8th ed). Upper saddle River, N.J: Prentice Hall.

Blythe, J (2008). Essentials of marketing. Harlow: Pearson

Kotler, p (2003). A framework for marketing Management (2nd ed). Upper Saddle River, N.J: prentice Hall.

Kotler, P (2000). Marketing Management (11th ed). Upper Saddle River, NJ: prentice Hall

BPP (2013). Business Essentials: Marketing Principles, London: BPP Learning media.

Kotler, P and Armstrong, G (2004) Principle of Marketing,10 ED Pearson.

The times, Business case Studies: Aldi; Creating Value through the marketing mix. Order Now

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