Unit 3 Business Communication And Development

3.1 Explain how products are developed to sustain competitive advantage

Currently companies are using different techniques to achieve competitive advantage. For example Superdrug is competing with Boots, ASDA, Tesco Body Shop, Sainsbury’s, Morrison, Debenhams and Marks & Spencer. business Products development is one of the key strategies to get sustainable competitive advantage. Organisation can develop its existing products or it can introduce new products to customers. Product development has physical and insubstantial benefits. Product development conducted in two parallel paths: one path is related to market research and analysis and another path is related to idea generation, product design and detail engineering. It is very important to conduct product development frequently otherwise it is really tough to get competitiveness. Product development has some steps: Idea screening, concept development and testing, business analysis, beta testing and market testing, technical implementation, commercialisation, generating ideas which is often called as fuzzy front end of the product development process, and new product pricing. Sainsbury’s follows the above mentioned process in its product development. Sometimes Sainsbury’s conducts several steps at a time to produce its own products and services. (Johny, 2011)

 3.2 Explain how distribution is arranged to provide customer convenience

Distribution plays a crucial role in enhancing the convenience of the customers. The distribution system of a company can appear as a major competency for the company. There are four elements of marketing mix including product, price, promotion and place. The distribution comes under the place category and the companies develop proper distribution system because accessibility of the customers enhances the potential sales for a company. For example, is Coca Cola Company does not outsource its distribution services and Coca Cola bottles would have been available only from the factories then customers might not have been willing to get them. It is more convenient for the customers to get Coca Cola drinks from a nearby retailer as compared to getting it from a wholesaler. Therefore, distribution can become a massive strength or a weakness for a company. (A. Jhon. 2010)

Three types of distribution channels can be used to improve customer convenience.  Boots uses two types of distribution channels. First of all it produces its own products and service which it sells to customers directly. It has its own brand products which it sells to customers directly. It uses second distribution channel as well where they act as a retailer. It buys products from different manufactures and sells products to customers. In general Boots sells quality products of different brands like Calvin Klein, Chanel, Dior, Diesel, Boss, Gucci, Jean Paul Gaultier, Marc Jacobs, Jimmy Choo, Thierry Mugler and Tom Ford.(Johny, 2011)

3.3 Explain how prices are set to reflect an organisation’s objectives and market conditions

Prices are always established with an organisation’s objectives or goals and market conditions in mind. Price is not just a number on a tag hanging on a product, but pricing is an important of business marketing strategy in all manners. In order to properly price the product, the entire business and marketing strategies are required. The customer can afford the products, suitable sales channels, product cost, competitors and expected profit.

The price of a product will need to be worth the value of the product. Management decides the marketing strategy, sets the organisational goals and objectives, and decides on what product lines and services are worth pursuing. For this reason, prices are always subject to the character and beliefs of those who lead the organisation. Companies examine the market and look at the way certain products are performing. This is how the companies determine if a product is going to be included in their own product lines or services that they offer.

Businesses that are well established with easily recognisable names are often the ones to set the standard prices within the market whatever the competition leels. Businesses that are not as recognisable and cannot as easily gain new customers have to set lower prices in order to attract people to purchase their products. If businesses wish to increase sales and win customers from competitors, they have to produce good products and price their items lower than the competitors. This is just one of the many ways in which prices are set by an organisation’s objectives and market conditions. (C. Sephton, 2015)

Prices are established with an organisation’s objectives or goals and market conditions in mind. Pricing strategies are of different types like penetration pricing, focused based pricing, price skimming, product life cycle and discount pricing. Price skimming – these organisations tend to keep price high. The prices fall following the normal laws of demand and supply. Premium pricing – the organisation provides quality products with higher price. Prices are charged as extra for the quality supplied by the organisation. This is good when organisation enter a new market. Penetration pricing – organisation keeps the price low than competitors to penetrate the market. Here organisation arises awareness concerning products among customers and persuades people to try the products. Economy pricing – the quality of the products and services are low; prices are kept low too. This pricing is also called minimum pricing. Boots follows two pricing strategies like premium and penetration pricing strategy. When they introduce new products to customers generally they follow premium pricing strategy. The product and service quality of Boots is high and the costs of its products are relatively lower than other competitors. To be able to do that, Boots controls the cost of raw materials, components, labour and some other inputs. Selling quality goods and providing quality services to customers with reasonable price are goals and objective of Boots, Its pricing strategy change with market condition. (Johny, 2011)

3.4 How promotional activity is integrated to achieve marketing objectives

Promotional activities are integrated to make the connections that turn into leads and sales, so the way it promotes its brand is important. Marketing objectives can only be met through reaching out to its target audience and conveying its brand message. Sainsbury’s must be clear about exactly what it is trying to achieve through the promotion. The main aim of any promotion is to obtain and retain customers. However, there is a number of other objectives, some or all of which any successful campaign must fulfil.

Promotion is one of the elements of marketing mix and there are different kinds of promotional activities like advertising, public relations, personal selling and sales promotions. If marketing department wants to achieve its marketing objectives it should integrate its promotional activities. Other promotional strategies are coordination, repetition, consistency and reach. Marketing spends money in advertising to reach its messages to customers. Most common advertising mediums are television, radio, websites, city transports, magazines, newspapers, and social media. Personal selling is another effective promotional activity and some common forms of personal selling are individual gathering, correspondence, telemarketing and message. Sainsbury’s sometimes provide different sales promotions to customers and Sainsbury’s offers some promotions like the Sainsbury’s advantage card, the Boots bonus machine, double and triple point’s weekends and other deals. (Johny, 2011)

3.5 Analyse the additional elements of the extended marketing mix

The extended marketing mix is a combination of elements that make up a campaign to sell a product. It is an expansion on the original marketing mix of product, placement, price, and promotion, adding additional factors that can influence the success of a campaign. Companies preparing to launch new campaigns need to think about how to organise them, given the product, the company’s reputation, and the market. The first four elements of marketing mix are product, price, place, and promotion. Later another three elements are added: people, process and physical evidence.

People – power of people is very powerful in all markets, do not overlook it. People can affect and influence company products in any situations and channels. If a business applies all other Ps without considering about people, then its sales could not be really maximised.

Physical Evidence – this is another great P which extended from the traditional 4Ps in the past. If the company can effectively roar as many as satisfactions to all potential customers and clients in the market, the more long-term sales revenue it can make in the same market.

Process – If every other Ps is applied to a business’s product but its process was weak, the failures are waiting ahead. Process is a key to fully succeed in promoting its products in all markets. The company must have a good or at least suitable process carefully planned. (N. Kokemuller, 2015).

4.1 Plan marketing mixes for two different segments in consumer markets

This is not the answer.

Make up two segments A and B and plan mix A for Segment A and mix B for segment B. See me next time you are in and I will re-explain.

Marketing mix is a vital tool that can be used to market the products; and it refers to those elements of a firm’s marketing strategy which are designed to meet the needs of the customers. As mentioned early, there are four main parts to the marketing mix: product, price, promotion and place. Therefore, to meet consumer’s needs and to create an effective marketing mix, business must produce the right product, at the right price, make it available at the right place, and let consumers know about it through promotion. (David Friel, 2014)

The purpose for segmenting a market is to help a business’s marketing/sales programme to focus on the subset of prospects that are most likely to purchase its offering. Geographic segmentation might include considering the region of a country where consumers live and the nature of the region such as rural, urban, semi-rural or suburban. Geographic segmentation might include considering the region of a country where consumers live and the nature of the region.

As previously mentioned the marketing mix has seven elements: product, price, promotion, place, process, people and physical evidence. Sainsbury’s segments its market based on customer behaviour, physiographic, demographically and geographically. The marketing process and physical evidences are almost same in the UK. If Sainsbury’s wants to operate in Arabia Saudi, the products for Arabia Saudi would have some differences because of climate and prices in Arabia Saudi compared to UK. Products vary with geography. The marketing process and physical evidences are almost same in the UK and Arabia Saudi but people, promotion, price, product and place are different. Product quality, price and promotional offers are not same. People of management and employees are not same for those two countries. The products for men and women are different and prices are different for those products. Health care and beauty services for kids and women and men are different. Sainsbury’s has different products and service for different demographic segments. (Johny, 2011)

4.2 Illustrate differences in marketing products and services to businesses rather than consumers

Re-do using Slides or ask when you are in next time.

Different business organisations have different types of products. Sainsbury’s develops products and services according to market demand. In a market there are wide ranges of products. Products are divided in different sectors. For example, Sainsbury’s provides health and beauty services and products to customers. Similarly other organisations like Superdrug, Boots, Tesco, Body Shop, Sainsbury’s, ASDA, Morrison, Marks & Spencer, and Debenhams also provide health and beauty services and products to customers. Marketing activities of those companies are not same. They do different activities for promoting their products but their targeting customers are almost same. The targeting customer of Sainsbury’s and Tesco will be same but there will be slight difference. It is clear that difference in marketing products and services to business rather than customers. Tesco, Boots,  Sainsbury’s and Superdrug concentrate on their product most rather than customers as all those companies target the same customers and customer will buy product which has more loyalty and marketing activities (Johny, 2011).

The success of a business marketing strategy involves gaining a comprehensive understanding of the particular markets that the business serves. These markets can either be consumer markets or business markets. The differences in marketing of products and services to organisations rather than consumers are:

1) The business buyer wants to buy. Most consumer advertising offers people products they might enjoy but do not really need. But in business-to-business marketing, the situation is different. The business buyer wants to buy. Indeed, all business enterprises must routinely buy products and services that help them stay profitable, competitive, and successful. The proof of this is the existence of the purchasing agent, whose sole function is to purchase things.

2) The business buyer read a lot of copy.  The business buyer is an information-seeker, constantly on the lookout for information and advice that can help the buyer do the job better, increase profits, or advance its career. (Ron Brauner, 2008)

4.3 Show how and why international marketing differs from domestic marketing

Domestic marketing and International marketing are same when it comes to the fundamental principle of marketing. Marketing is an integral part of any business that refers to plans and policies adopted by any individual or organisation to reach out to its potential customers. A web definition defines marketing as a process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational goals. Marketing is a ploy that is used to attract, satisfy and retain customers. Whether done at local level or at the global level, the fundamental concepts of marketing remain the same. However, there is significant difference between domestic marketing and international and these are:

Scope – the scope of domestic is limited and will eventually dry up.  On the other hand, international marketing has endless opportunities and scope.

Benefits – as is obvious, the benefits in domestic marketing are less than in international marketing. In addition, there is an added incentive of foreign currency that is important from the point of view of the home country as well.

Sharing of technology – domestic marketing is limited in the use of technology whereas international marketing allows use and sharing of latest technologies.

Political relations – domestic marketing has nothing to do with political relations whereas international marketing leads to improvement in political relations between countries and also increased level of cooperation as a result.

Barriers – In domestic marketing there are no barriers but in international marketing there are many barriers such as cross cultural differences, language, currency, traditions and customs. (Andrew, 2011).

A business firstly should gain full understanding of markets by researching consumer needs wants and demand:

Needs – are basic human requirement such as food, air, clothing, shelter and education.

Wants – needs become wants when they are directed to specific objects that might satisfy the need but shaped by society culture.

Demands – are wants for specific product backed by ability to pay.

There are some differences between international marketing and domestic marketing and these are:

Scope – international marketing has more scope than domestic marketing.

Obstructions – international marketing has to face more obstructions than local marketing. They have to compete with other manufacturers in overseas  and to follow the rules and regulations of operating countries.

Profits – generally profit margin of international marketing is higher than domestic marketing.

Offering of engineering –  both international marketing and domestic marketing marketing use modern innovation but international marketing use most recent innovations.

Political relations – domestic marketing has nothing to do with political relations but international marketing organisation should have good political relation.


Marketing principles are necessarily based on marketing generalisations but also definable through synthetic means based on marketing logic. Marketing managers must devise an effective mix of product, price, place, and position to create the formula that is best suitable for the company’s goods and services.


Exam Boards: AQA, Edexcel, OCR (Second Edition-for the 2003, 2004 and 2005 exams page 13-25)

BTEC Level 4 HNC & Level 5 HND in Business, page 495-549 (Copyright Mark Saunders, Philip Lewis and Adrian Thornhill 2009) Order Now

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