Marketing Principles

TASK 1

a) Discuss briefly what you think is a good description of the concept of marketing
you also discuss what you understand are the elements of the marketing process
that organizations usually have to follow in marketing their products and
services

Activities which are included in marketing are advertising, selling and delivering products
to the people. It very important to understand the customer needs wants and demand so
company can provide product and service according to customer. Marketing process include
4 important steps. Main aim of this step is carried out with the purpose of creating a brand
value among the customers (Chapman and Borna, 2008).
In marketing process firstly environment is scanned, it refer to know about customers
expectation from product. To know about customer expectation various types of research is
conducted by company. After scanning the market, it is being segmented. Segmentation is a
process where large groups are divided into small units according to similar characteristics.
Segmentation types are demographic, psychographic, geographic, behaviouralistic.
In this step after segmenting the market that segment is selected which company wants to
target. In targeting all segment are evaluated from pre-determined criteria then according to
organization ability that segment is selected which give profit to company as well as give
satisfaction to customer. According to features the product positioning strategy is selected,
this strategy set a product image in customers mind. The strategy which is selected it should
consider organization goals and market situation.

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b) Discuss what you understand with the concept of 'Marketing Orientation'. In

you answer you should also include three benefits a marketing orientation
approach. Give one examples of one organization that follows a marketing
orientation approach

Market orientation refers to business reacts according to customer needs rather than what
they want to serve customers. In the highly competitive market in order to maintain its
position companys main focus is on providing the best quality of services to its customers.
Marketing orientation include product, production, selling, marketing and social
responsibility (Brown, 2003).
To maintain the standard of product and services company constantly examine the buying
behaviour of customers. Many types of cost are incurred by company to maintain the
standard of products and service. Companies are conducting many type of marketing research
in order to identify the changes in the needs and expectation of customers. Sales and
marketing share is increased by company because they are bearing business development cost
like online ordering etc. (Caemmerer, 2009).
A company get many benefits from market orientation if they introduced new product
and service then there has less chances of product falling, if effective market research has
been conducted by company. In market orientation they are serving product according to
customer need so there has chances that product will survive longer and make higher
products.

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c) Discuss 3 examples of real factors that marketing departments have to consider

as either a macro or micro environmental factors that impacts any industry. In
your answer you utilize the SWOT, PESTEL to help you formulate real examples

SWOT analysis is a process that identifies the strengths, weaknesses, opportunities and
threats of an organization. Specifically, SWOT is a basic, analytical framework that assesses
what an organization can and cannot do, as well as its potential opportunities and threats. A
SWOT analysis takes information from an environmental analysis and separates it into
internal strengths and weaknesses, as well as its external opportunities and threats.
Strengths
Strengths describe what an organization excels at, allowing decisions on how to gain a
competitive advantage. For example, a hedge fund may have developed a proprietary trading
strategy that returns superior results in comparison to its competitors. It must then decide how
to use those superior results to attract new investor capital.

Weaknesses
Weaknesses stop an organization from performing at its optimum level. They have the
potential to reduce progress or to give a competitive edge to the competition. An organization
needs to minimize weaknesses and analyze how they can be improved. An inadequate supply
network or lack of capital is example of weaknesses.

Opportunities
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Opportunities refer to favourable external factors that an organization can use it its advantage.
If utilized effectively, opportunities have the potential to create a competitive advantage. For
example, a car manufacturer may be able to export its cars into a new market if tariffs in a
country are substantially reduced. This is likely to increase sales and market share, which
may create a competitive advantage in terms of scale.
Threats
Threats refer to factors that have the potential to negatively impact an organization. For
example, a drought is a threat to a wheat-producing company, as it may destroy or reduce the
yield of a wheat crop. Market share is likely to be lost if a competitor has not diversified
operations in terms of location. It is prudent for an organization to have a comprehensive
contingency plan that addresses possible risks and specifies how to deal with them.

PEST is an acronym for Political, Economic, Social and Technological. This analysis is used
to assess these four external factors in relation to the business situation.
Basically, a PEST analysis helps you determine how these factors will affect the performance
and activities of your business in the long-term. It is often used in collaboration with other
analytical business tools like the SWOT analysis and Porters Five Forces to give a clear
understanding of a situation and related internal and external factors.
Political: These factors determine the extent to which a government may influence the
economy or a certain industry. [For example] a government may impose a new tax or duty
due to which entire REVENUE generating structures of organizations might change. Political
factors include tax policies, Fiscal policy, trade tariffs etc. that a government may levy around

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the fiscal year and it may affect the business environment (economic environment) to a great
extent.
Economic: These factors are determinants of an economys performance that directly impacts
a company and have resonating long term effects. [For example] a rise in the inflation rate of
any economy would affect the way companies price their products and services. Adding to
that, it would affect the purchasing power of a consumer and change demand/supply models
for that economy. Economic factors include inflation rate, interest rates, FOREIGN
EXCHANGE RATES, economic growth patterns etc. It also accounts for the FDI (foreign
direct investment) depending on certain specific industries whore undergoing this analysis.
Social: These factors scrutinize the social environment of the market, and gauge determinants
like cultural trends, demographics, population analytics etc. An example for this can be
buying trends for Western countries like the US where there is high demand during the
Holiday season.
Technological: These factors pertain to innovations in technology that may affect the
operations of the industry and the market favorably or unfavorably. This refers to automation,
research and development and the amount of technological awareness that a market
possesses.
Legal: These factors have both external and internal sides. There are certain laws that affect
the business environment in a certain country while there are certain policies that companies
maintain for themselves. Legal analysis takes into ACCOUNT both of these angles and then
charts out the strategies in light of these legislations. For example, consumer laws, safety
standards, labor laws etc.

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Environmental: These factors include all those that influence or are determined by the
surrounding environment. This aspect of the PESTLE is crucial for certain industries
particularly for example tourism, farming, agriculture etc. Factors of a business
environmental analysis include but are not limited to climate, weather, geographical location,
global changes in climate, environmental offsets etc.

TASK 2
a) Discuss with your new Manager at least three major factors that will influence
consumer buying behaviour. In your answer gives some real example of customer
behaviour in central London.

Cultural Factors - Culture and societal environment Culture is crucial when it comes to
understanding the needs and behaviours of an individual. Basically, culture is the part of
every society and is the important cause of person wants and behaviour. The influence of
culture on buying behaviour varies from country to country therefore marketers have to be
very careful in analyzing the culture of different groups, regions or even countries.
Throughout his existence, an individual will be influenced by his family, his friends, his
cultural environment or society that will teach him values, preferences as well as 54 common
behaviours to their own culture. For a brand, it is important to understand and take into
account the cultural factors inherent to each market or to each situation in order to adapt its
product and its marketing strategy. As these will play a role in the perception, habits,
behaviour or expectations of consumers.
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Social classes - Social classes are defined as groups more or less homogenous and ranked
against each other according to a form of social hierarchy. Even if it s very large groups, we
usually find similar values, lifestyles, interests and behaviours in individuals belonging to the
same social class. Every society possesses some form of social class which is important to the
marketers because the buying behaviour of people in a given social class is similar. In this
way marketing activities could be tailored according to different social classes. Some studies
have also suggested that the social perception of a brand or a retailer is playing a role in the
behaviour and purchasing decisions of consumers. In addition, the consumer buying
behaviour may also change according to social class. A consumer from the lower class will be
more focused on price. While a shopper from the upper class will be more attracted to
elements such as quality, 55 innovation, features, or even the social benefit that he can obtain
from the product.
Family- The family is maybe the most influencing factor for an individual. It forms an
environment of socialization in which an individual will evolve, shape his personality, and
acquire values. But also develop attitudes and opinions on various subjects such as politics,
society, social relations or himself and his desires. Buyer behaviour is strongly influenced by
the member of a family. Therefore marketers are trying to find the roles and influence of the
husband, wife and children. If the buying decision of a particular product is influenced by
wife then the marketers will try to target the women in their advertisement.

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b) During the interview you must show that Market segmentation is important for
you new job. Discuss with you Manager what you think is Market Segmentation.
In your answer include the purpose and requirements and 2 types of
segmentation

Segmentation strategies
There are many ways in which a market can be segmented. A marketer will need to decide
which strategy is best for a given product or service. Sometimes the best option arises from
using different strategies in conjunction.
Geographic segmentation
Geographic segmentation is a common strategy when company serve customers in a
particular area, or when company broad target audience has different preferences based on
where they are located. This marketing approach is common for small businesses that serve a
wide demographic customer base in a local or regional territory.
Demographic segmentation
Demographic segmentation is market segmentation according to age, race, religion, gender,
family size, ethnicity, income, and education. Demographics can be segmented into several
markets to help an organization target its consumers more accurately.
Psychographic segmentation
Psychographic segmentation involves dividing your market into segments based upon
different personality traits, values, attitudes, interests, and lifestyles of consumers. This

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segmentation is advantageous because it allows you to engage in product design and

marketing in a focused manner.

c) Explain to your Marketing team what is the concept and utility of Product
Positioning. In your provide an examples of a proposal of a new position to any
product you select.

Product positioning is an important element of a marketing plan. Product positioning is the

process marketers use to determine how to best communicate their products' attributes to their
target customers based on customer needs, competitive pressures, available communication
channels and carefully crafted key messages.
Positioning is an essential part of launching your product and company in the market.
Positioning creates an image of your companys product in the mind of your target customer.
The term positioning should be viewed both as a verb and a noun.
As a verb, it can be defined as deploying a set of tools and processes used to influence and
control the markets perception of your product or company in relation to any competing
alternatives. As a noun, it can be defined as an attribute or condition associated with your
product.
Customers develop opinions about companies and products. And the positioning of each in
the mind of the customer always occurs in relation to the competition or the customers other
alternatives (which may include doing nothing).

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While marketing communications play a part in developing the desired position, its worth
noting that in reality customers make up their minds based on a wider range of factors,
including packaging, pricing, product performance, references and media recommendations.
Positioning fundamentals

Positioning is the single greatest influence on a customers buying decision

Each customer evaluates products in the market according to their mental map
of the market

Positioning exists in customers minds, not in positioning statements

People do not easily or willingly change their minds about a products

positioning

Positioning must first demonstrate a products relevance, using supportable,

credible, and factual terms

Making the product easier to buy through effective positioning makes the
product easier to sell.

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