This assignment will discuss and summarise key issues and elements of the Marketing process. It generates the strategy that underlies sales techniques, business communications, and developments. It is an incorporated process that can be modeled in a sequence of steps: the situation is analyzed to identify opportunities, the strategy is formulated for a value proposition, tactical decisions are made, the plan is achieved and the results are monitored.
- Explain the various elements of the marketing process
Marketing is the social process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. (Kotler & Armstrong, 2010). The marketing process of accompanying typically involves identifying the viable and potential marketing opportunities in the environment, developing strategies to effectively utilize the opportunities, evolving suitable marketing strategies, and supervising the implementation of these marketing efforts. (M. Patidar, 2012).
Discuss and summarise key issues and element of the process
Sainsbury’s which is one of the most prosperous companies in the world has been chosen for the case study. There are four key elements of the marketing process, environment analysis, and strategy development, the choice of the marketing mix, and implementation and control.
The Marketing Process
Marketing process has several steps and these steps are summarising below:
- 1 – By analyzing marketing opportunities, Sainsbury’s has the opportunities to find out about the current and future market trends, current resources and capabilities, and internal and external environment. Research into the environment defines the strengths and weaknesses of the Organisation, the competitive forces at work and the macro forces that affect business, and what the market actually wants.
- 2 – The next step element is choosing target customers for its products and services. Sainsbury’s will segment the whole market in different parts based on different aspects and select the best one for its products and services.
- 3 – Sainsbury’s has to develop a marketing strategy after selecting the target market and marketing strategy that consists of value proposal, targeting, segmenting, and positioning of services and goods. Marketing strategy is composed of segmentation, targeting, and positioning. It also gives Sainsbury’s the general vision of achieving goals or where it wants to be.
- 4 – The Marketing mix decisions are tactical tools used to attract customers, beat competitors, increase sales, and provide a better value for its customers. The 4Ps- Product, Price, Place, and Promotion are the key issues and elements, of the marketing process and this includes: what a company is going to produce; how it is much it is going to charge; how it is going to deliver its products or services to the customer; and how it is going to tell its customers about its products and services. As marketing becomes more highly developed and complex, a fifth “P” was incorporated which was (People), and recently, two further “P” were added, mostly for service industries and they are Process and Physical evidence. These are now considered as the 7Ps of marketing.
- 5 – Implementation and control is the fourth element of the marketing process. It allows organizations like Sainsbury’s to assess whether they had planned and performed diligently throughout production in order to satisfy customer needs and had brought to market the right marketing approach and mix.
- b) Evaluate the benefits and costs of a marketing orientation for a selected organization
Production orientation is when a business makes products that are affordable and available. It is useful for management in order to make sure that the organization is as efficient as possible in production and distribution techniques.
Product orientation believes that the consumers are mainly interested in the product itself, and they will buy base on the product quality; as the consumers want the highest level of quality for their money.
Selling orientation is when an organization structures its business by focusing on needs that are required for selling to the market. This means the organization is more interested in selling rather than customer needs. It is the opposite of customer orientation.
Societal orientation is a business perspective by which a company operates in the interest of society as a whole. For example, a company that operates sells food items with ingredients that are sustainably farmed.
The marketing orientation is a business model that focuses on delivering products designed according to customer desires, needs, and requirements. Sainsbury’s can develop products based on either a product-oriented approach or a marketing-oriented approach. The marketing-oriented approach means Sainsbury’s reacts to what customers want. The marketing orientation is the best orientation Sainsbury’s can adopt because Market orientation has the benefits of focusing and meeting the stated or hidden needs or wants of customers; or it expresses a marketing perception that put the customer’s needs in the core of all firm’s activities, according to Dalgic (1998). Therefore, Sainsbury’s benefits from decisions based on customers’ needs and wants rather than what Sainsbury’s thinks is right for the customers. In general, organizations follow a market approach because a market-oriented approach brings some benefits and costs to Sainsbury’s. Further benefits of market-oriented approaches are: this process is customer-centric and Sainsbury’s gives importance to the customers’ demands and needs; Sainsbury’s reacts with customer demand, this process helps Sainsbury’s to create buyer value that increases customer loyalty and frequent shopping; as Sainsbury develops products and services that give competitiveness over its competitors.
A marketing-orientated approach means that Mcdonald’s must spend to develop what customers want, and the decisions are taken according to the information based on customers ‘needs and want, rather than what the business thinks is convenient for the customer. McDonald’s market-orientated approach needs investment in the right products or services as customers require more variety and better quality. For that reason, the businesses need to invest constantly in marketing and be more sensitive to their customers and market needs otherwise they will lose sales to their competitors.
2.1 Show macro and micro environmental factors which influence marketing decisions of Sainsbury’s
There are two kinds of external marketing environments; micro and macro. These environments’ factors are beyond the control of marketers but they still influence the decisions made when creating a strategic marketing strategy. Sainsbury’s runs its operation in its business environment that is classified as macro and microenvironment which have a significant influence on marketing decisions.
Micro Environment Factors
The suppliers can control the success of the business when the suppliers hold the power. The supplier holds the power when the suppliers are the only or the largest supplier of their goods; the buyer is not vital to the supplier’s business; the supplier’s product is a core part of the buyer’s finished product or business.
The customers – who the customers are (B2B or B2C, local or international) and their reasons for buying the product will play a significant role in how someone approaches the marketing of its products and services to them.
The resellers if the product the organization produces is taken to market by third party resellers or market intermediates such as retailers, wholesalers, then the marketing success is impacted by those third-party resellers. For example, if a retail seller is a reputable name then this reputation can be leveraged in the marketing of the product.
The competition – those who sell the same or similar products and services as an individual’s organization are its market competition. Price and product differentiation plays an important role in order to competitive advantage.
The general public – an organization has a duty to satisfy the public. Any actions of the company must be considered from the angle of the general public and how they are affected. The public has the power to help the organization reach its goals; just as they can also prevent the organization from achieving the goals as well.
Macro Environment Factors
There are many factors in the macro-environment that will affect the decisions of the Marketing managers of any organization. Tax changes, new laws, trade barriers, demographic change, and government policy changes are all examples of macro – change.
Political factors – These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidizing firms? What are its priorities support? Political factors can impact many vital areas for business and products to the market.
Economic factors – these include interest rates, taxation changes, economic growth, inflation, and exchange rates. For example, higher interest rates may deter investment; a strong currency may make exporting more difficult because it may raise the price in terms of foreign currency; inflation may provoke higher wage demands from employees and raise costs; higher national income growth may boost demand for a firm’s products and these need to be taken into account in pricing decisions.
Social factors – changes in social trends can impact the demand for a firm’s products and the availability and willingness of individuals to work. In the UK, for example, the population has been aging and this impact on product and distribution methods.
Technological factors – new technologies are new products and new processes. MP3 players, computer games, online gambling, and high definition TVs are all new markets created by technological advances. Online shopping, barcoding, and computer aided design are all improvements to the way people respond to the marketing offer as a result of better technology.
Environmental factors – environmental factors include the weather and climate change. Changes in temperature can impact many industries including farming, tourism, and insurance. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider and these impact packaging choices and fairtrade.
Legal factors – these are related to the legal environment in which firms operate. In recent years in the UK, there have been many significant legal changes that have affected firms’ behavior. The introduction of age discrimination and disability discrimination legislation, an increase in the minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organization’s actions. Legal factors can affect a firm’s cost if new systems and procedures have to be developed and demand if the law affects the business relationships.
2.2 Propose segmentation criteria to be used for products in different markets
Segmenting a market refers to the process of dividing a market into smaller sub-groups based on some key defining characteristics of consumers. There are two types of markets: consumer market and organization market. The consumer market is to sell products or services to the individual buyers for their own or family use. However, an organization/industrial market involves the sale of goods or services between businesses. There are five criteria in consumer market segmentation: behavioral, psychographic, geographic, demographic, and geo-demographic; and there four criteria in industrial market segmentation (3macro + 1 micro), they are: Usage, size, location, and industry.
Therefore, McDonald’s should decide to segment a market in a number of ways, such as by geographical region, age, and income. McDonald’s CEO suggested market segmentation based on broad two-step classifications of macro-segmentation and micro-segmentation. This model is one of the most common methods applied in retail markets today.
Segmentation divides buyers into groups with similar needs and wants and it allows for a better allocation of a firm’s finite resources. Segmenting a market is demanded by the organization that manufactures goods or provides services in order to help it deal with the group rather than each individual. There are five criteria for Customer market segmentation, namely psychographic, behavioral, geographic, demographic, and geo-demographic.
Behavioral segmentation divides the market into groups based on their knowledge, attitudes, uses, and responses to the product. Behavioral segments can group consumers in terms of occasions, usage loyalty, benefits sought.
Psychographic segmentation is about a marketing strategy in which customers are divided into different groups based on lifestyle. The approach defines various demographics that help marketers understand what influences purchase decisions such as different attitudes and expectations.
Profile segmentation generates accurate and precise customer information that can increase your organization’s effectiveness. Information may be useful in a large variety of circumstances. For example, someone can use segmentation to define certain customer issues such as characteristics of your target customers, customer lifestyle characteristics, where more of these customers live, and strategies for marketing your products and services.
Examples of common characteristics are: interests, lifestyle, age gender, and the common types of market segmentation include: geographic, demographic psychographic, and behavioral. Price can be used in two different segments such as demographic and psychographic. For example, bus and train tickets cost less for young people from 7 to 17 years old (demographic), and they cost more for social class or lifestyle (psychographic). (J. Riley, 2012).
There are four criteria for Industrial market segmentation, namely location, size, usage, and industry. Location is about the areas where businesses are, while size determines orders. The industry is a clear indication of specificity while knowing usage helps to merge orders.
Geographic location is equally as feasible for McDonald’s. It tells McDonald’s a lot about culture and communication requirements. Geographic location also relates to culture, language, and business attitudes. Benefit segmentation is the product’s economic value to the customer (Hutt & Speh, 2001) is one of the most helpful criteria in Sainsbury’s. It recognizes that customers buy the same products for different reasons, and place different values on particular product features.
Segmenting Consumer Market Diagram below
2.3 Choose a targeting strategy for a selected product/service
Targeting strategy means how a business selects potential customers to whom it wishes to sell its products or services. The targeting strategy requires segmenting the market, choosing which segments of the market are appropriate, and determining the products that will be offered in each segment.
In general, organizations produce different products and services for a certain group of people or customers. Sainsbury’s may follow different targeting strategies like differentiated or selected marketing, niche, concentration marketing, and mass, undifferentiated marketing. In niche marketing, Sainsbury’s chooses a certain group of people as its customers from all people. Economic recession has negative impact on niche marketing
Sainsbury’s conducts its marketing only for its target groups. Generally, Sainsbury’s follows mass marketing where it produces goods and services in huge volume and sells goods at reasonable prices and does little profit per product because a huge will turn out a huge profit. Sainsbury’s conducts marketing for all segments of the market. In differentiated marketing strategy, Sainsbury’s concerned with targeting each segment with a product with its own marketing mix designed to match the needs of the customers within the segment. In this process, Sainsbury’s can increase customer satisfaction and customer loyalty and allow Sainsbury’s to spread risks.
Differentiated marketing creates a special product that is different from other products in order to help a business to gain competitive advantages over its competitors. A company can choose two different strategies: differentiation and differentiation focus.
Focused marketing is a form of marketing that requires the marketing managers to carefully study their organization so as mirror its position in the market because without a plan for focused marketing, it would be impossible for any business to grow and profit.
Customized marketing is tailoring a particular product to the specific needs of an individual customer, and it is generally practiced by companies whose products are unique and the product can be designed to suit the special needs of each customer. Since the company is considered to be the final form of target marketing.
For example, McDonald’s uses an undifferentiated targeting strategy since as a Marketer; it does not pay attention to the apparent segment differences that exist within the market and attempts to appeal to the whole market with a single basic product line and marketing strategy. Certain types of items such as chicken and soft drinks can be taken as an example, targets drivers or owners car with the same products. McDonald’s targets people who do not have enough time to spend eating, such as workers, travelers, students, and tourists and does not make any difference to whoever it sells its standard products to.
2.4: How buyer behavior influences and affects marketing activities in different buying situations
Organizational marketing activities hugely depend on the buying behavior of the customers. Customers may become extremely involved or lowly involved with organizational products and services and it depends on the tangible and intangible value of the products. Usually there are four types of buying behaviors:
Dissonance buying behavior – customers are extremely involved here but there are only a few product options in the market like floor tiles at affordable prices.
Complex buying behavior – here customers are greatly involved and they spend a lot of time before buying the products and services. Usually, these products are precious and customers ask others for expertise before buying products. These products have a major impact on customers; for example, buying gold thus influencing the product offering..
Habitual buying behavior – these customers have low involvement and there are too many of same quality products available in the market but those products are very essential for our everyday life products and prices like chicken, fish, tomato, bread or drinks.
Variety-seeking behavior – these customers have low involvement and there are too many options for the same type of product. Customers may check those products at different channels thus affecting the place. For example, there are lots of fragrances in the market and people may buy different fragrances at different times only for variety. Manufacturers have to offer different offers to customers to sell their products and to attain competitiveness.
(Johny, 2011). Consumer buying situation – consumers are those who buy the product for personnel needs. McDonald delivered daily used different products to attract customers with suitable price. The decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers (Kotler & Armstrong, 1989). Buying behavior thus is made up of the internal and external factors that show why consumers buy and use certain products or services and Organisations then respond to it with their products and services. This type of behavior can affect the marketing strategy that a business employs to promote its products and its mix, and when this behavior is analyzed, it might not have originally used. Organizations then create a marketing mix suited to the different types of buying behavior and to customers with different needs and want and related to cultural, social, psychological and personal factor. For example, Mcdonald’s in Islamic countries, they do not use pig meat in their recipes. (Crystal Vogt, 2015)
2.5: Explain Positioning and discuss what changes when Marketers propose new positioning for a given product/service.
Positioning is the strategy of an organization for conveying what makes its company or products excellent, different, or better than those offered by competitors. So differentiation is essentially the way the organization carries out its positioning by promoting distinct attributes or benefits that the organization offers. Positioning can be by image repositioning, this means no change to product but promo used to change image. Product repositioning, there will be modification to product and brand. Intangible repositioning can be when marketers target a different segment with the same product. Tangible repositioning means that the marketer changes both product and market. (Lynn Lauren, 2015)
Positioning strategies involve the various ways and means that marketers utilize to develop an image of the firm, its products, or services in the mind of their customers or consumers. Product positioning is a marketing technique intended to present products in the best possible light to different target audiences. Market segmentation and product position is correlated and Sainsbury’s establishes product positioning according to the product segmentation. In positioning, Sainsbury’s creates message concerning its products and deliver the message to target customer through different mediums such as leaflet, magazines, television, and radio. The message includes manipulation and symbol and the success of product positioning largely depends on the technical experts, expert advice, fast service, creative ideas, high quality, caring attitudes, immediate results, low price, and emotional supports. (Lynn Lauren, 2015)
The marketers can propose and change positioning strategies for a market segment. The first step in changing their positioning strategies is a market research and the use of a management tool called SWOT will help them to identify their strengths, weaknesses, opportunities, and threats.
Repositioning is the changing of brand image to hold a new position in the eyes of customers. This means to change your previous position (low quality) to the high quality where the company is now in the customer’s mind. For example, KCF was called Fried Chicken and has repositioned its position by giving a new name. Also, another reason for repositioning a company could be related to the price. For example, a premium brand of shampoo sold at a relatively high price with advertising that emphasizes its superior performance may need to be repositioned as customers become more sensitive about prices. Sometimes the original positioning of a product does not stimulate the interest of consumers. Other times, the original positioning was successful, but the target market of that position has become saturated and companies need to find new ways to feed growth. In those instances, repositioning may be the solution. Repositioning does not need to be a dramatic overhaul of a product. It certainly can be, like when Dr. Pepper gave Diet Dr. Pepper a new label and new name – Dr. Pepper Ten – and advertised it s “mean’s drink,” If someone saw the advertisements for Dr. Pepper Ten, there was no doubt in its mind that it was positioned as a low-calorie soda that men can be comfortable drinking. When re-positioning, marketers should make sure that they de-program customer perception of old positioning and re-program the new position. For example, in the 1980s, Hyundai started selling its vehicles in the United States. Its first model, the Excel was positioned as a low-cost solution for budget-conscious buyers. To help ease concerns that low price meant cheap quality, Hyundai offered the longest warranties in the auto industry at all time. Its original position was successful, and sales in the United States grew quickly, but the marketing leaders at Hyundai did not want to be known as the cheap car company forever.
3.1 Explain how products are developed to sustain competitive advantage
Currently, companies are using different techniques to achieve a competitive advantage. For example, Superdrug is competing with Boots, ASDA, Tesco Body Shop, Sainsbury’s, Morrison, Debenhams, and Marks & Spencer. Product development is one of the key strategies to get a sustainable competitive advantage. The organization 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, commercialization, generating ideas which are often called the 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.
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 the marketing mix including product, price, promotion, and place. The distribution comes under the place category and the companies develop proper distribution systems because accessibility of the customers enhances the potential sales for a company. For example, if 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 them 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 a 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.
3.3 Explain how prices are set to reflect an organization’s objectives and market conditions
Prices are always established with an organization’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 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 organizational 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 organization. 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 recognizable names are often the ones to set the standard prices within the market whatever the competition levels. Businesses that are not as recognizable 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 organization’s objectives and market conditions. (C. Sephton, 2015)
Prices are established with an organization’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 organizations tend to keep prices high. The prices fall following the normal laws of demand and supply. Premium pricing – the organization provides quality products at a higher price. Prices are charged as extra for the quality supplied by the organization. This is good when an organization enters a new market. Penetration pricing – an organization keeps the price low than competitors to penetrate the market. Here organization 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 a 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, labor, 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 the market condition.
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 by 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 fulfill.
Promotion is one of the elements of the marketing mix and there are different kinds of promotional activities like advertising, public relations, personal selling, and sales promotions. If the 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 on advertising to reach its messages to customers. The 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 provides 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.
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 of 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 organize them, given the product, the company’s reputation, and the market. The first four elements of the marketing mix are product, price, place, and promotion. Later another three elements are added: people, process, and physical evidence.
People – the power of people is very powerful in all markets, do not overlook it. People can affect and influence company products in any situation and channel. If a business applies all other Ps without considering people, then its sales could not be really maximized.
Physical Evidence – this is another great P that 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. The 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.
4.1 Plan marketing mixes for two different segments in consumer markets
This is not the answer.
Makeup 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.
A 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, businesses must produce the right product, at the right price, make it available at the right place, and let consumers know about it through promotion.
The purpose of segmenting a market is to help a business’s marketing/sales program 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. Salisbury’s segments it’s market-based on customer behavior, physiographic, demographically, and geographically. The marketing process and physical evidence are almost the same in the UK. If Salisbury’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 the UK. Products vary with geography. The marketing process and physical evidence are almost the same in the UK and Arabia Saudi but people, promotion, price, product, and place are different. Product quality, price, and promotional offers are not the 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. Salisbury’s has different products and services for different demographic segments.
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 organizations have different types of products. Salisbury’s develops products and services according to market demand. In a market, there are wide ranges of products. Products are divided into different sectors. For example, Salisbury’s provides health and beauty services and products to customers. Similarly, other organizations like Super drug, Boots, Tesco, Body Shop, Salisbury’s, ASDA, Morrison, Marks & Spencer, and Debentures also provide health and beauty services and products to customers. Marketing activities of those companies are not the same. They do different activities for promoting their products but their targeting customers are almost the same. The targeting customer of Salisbury’s and Tesco will be the same but there will be a slight differences. It is clear that difference in marketing products and services to businesses rather than customers. Tesco, Boots, Salisbury’s, and Super drug concentrate on their product most rather than customers as all those companies target the same customers and customer will buy a 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 organizations 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 their career.
4.3 Show how and why international marketing differs from domestic marketing
Domestic marketing and International marketing are the 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 organization 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 organizational goals. Marketing is a ploy that is used to attract, satisfy and retain customers. Whether done at the 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 the use and sharing of the 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 requirements 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 wanted for specific products backed by the 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 overseas and to follow the rules and regulations of operating countries.
Profits – generally profit margin of international marketing is higher than domestic marketing.
The offering of engineering – both international marketing and domestic marketing use modern innovation but international marketing use the most recent innovations.
Political relations – domestic marketing has nothing to do with political relations but international marketing organizations should have good political relations.
Marketing principles are necessarily based on marketing generalizations 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.
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