Marketing Principles

TASK 1

a.

One of the simplest definitions is from Philip Kotler:

Marketing is human activity directed at satisfying needs and wants through exchange
processes. Kotler later improved on this definition by redefining marketing as:
A social and managerial process by which individuals and groups obtain what they need and
want through creating and exchanging products and values with others
Marketing is coping with these exchange processes calls for a considerable amount of work
and skill. It is the...The right product, in the right place, at the right time, and at the right
price
The American Marketing Association (AMA) defines marketing as:
The process of planning and executing the conception, pricing, promotion and distribution of
ideas, goods and services to create exchange and satisfy individual and organisational
objectives
Definition of market represents an aspects which delving within scenario which are
socially and managerial and are helping the increasing of business and to raising a bond
robust with clients by to give them some opportunities for providing a services premiums for
the clients in ordering for achieving a importance level within the perspective of the latter. To
meet the need of clients is very important of the already loyalty of clients and prospective
clients taste buds for the generation of the services which are required by the clients. And in
this are regarding management of clients relationship which are playing a role which are
pivotal. Evaluate the aspects of marketing scenario to concentrate on the goal which have the

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base on the market, marketing mix increase and to control the endeavour of marketing are
describing as the marketing procedure.
Evaluation of the current scenario
The circumstances of evaluation process may be viewed in assessment respect of the outside
surround and a company inner evaluation. SWOT scenario of assessment is required for to
carry out the company inner evaluation.
Growth of exclusive marketing scenario
The increase of marketing scenario of company which are exclusive is made with the focus
help on the company goals. Segmentation of the market, to choose the market concentration
and to place the scenario to be cultivated.
Cultivating differently scenario of the marketing mix
Portakabin marketing scenario the base of them is following some steps:

Product growth;
Prices choice;
Agreements choices;
Endorsement of the campaign growth.

Organisation and executing the scenario of the marketing

The inference basis drawn into marketing strategies respect, they are being viewed
immediately. The marketing mix aspects are being accustomed in a way which is particular
with the help of alternations into the strategies of marketing which are various. (Beaumont,
2014)

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b.
A marketing orientated (MO) approach means a business reacts to what customers want.
Decisions are based around information about customers needs and wants, rather than
what the business thinks is right for the customer.
Most markets are moving towards a more market-oriented approach because customers
have

become

more

knowledgeable

and

require

more

variety

and

better quality. To compete, businesses need to be more sensitive to their customers needs
otherwise they will lose sales.
MO and competitive advantage

Organisational
culture, knowledge;
authors include
Narver & Slater
(1990), Kohli &
Jaworski (1990)

Resource decision
making, knowledge,
innovation;
authors include Hunt
& Morgan (1995)

Processes that lead

to knowledge,
innovation;
authors include
Levitt & March
(1988)

Benefits of Market orientation is customer satisfaction

Good customer care helps turn satisfied customers into ambassadors for a business
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Both customer retention and customer loyalty depend on customer satisfaction

Customer retention should be essential objective for management when developing a
market orientation

Brand relocation
Is necessary alienating the company brand from the other brands of competitors for the
clients who are loyal to company and to develop a foundation for the clients which are new.
Aspects dealing with endorsement
For endorsement to zero in on the clients, company are going on to embrace the stores
which are innovative. A contribution which is efficacious on Web 2.0 stages, airing of
commercials on the promotion of digitally and TV are being used for endorsing schemes and
products.
Growth of strategies which are innovative
Section inclusions which are innovative for industry are accumulating outlets that are new
at areas which are different and internationally and nationally areas is so important for the
aspect of company marketing.
Growth of the internationally mix of marketing
Marketing mix of entire world associated with aspects of domestically business in
regarding with the scenario of particularly market which are very important to become a
international stature brand.

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c.

Micro Environment
Consumers
For a company the clients have a big importance. Without clients the business it would not
exist. The different scenario of business and initiatives are depended on to fulfil their
demands and gratifying their demand.
Suppliers
On the company strategy, the suppliers have a control which is very strongly. They have the
responsibility to deliver the raw material; this is so essential for sustaining a deadline of firm
for accepting the deliveries of suppliers.
Mediators
This type is including the people or members of organisation which are connecting the
manufacturers to the different purchaser mediators. They are playing a very important role for
making sure that the services are delivered in a mode which is efficacious.
Macro Environment
Political factors
For the maintaining the social market the government have the first responsibility for that,
and for that social market are be allow to provide for organisation a stable and health
environment to be allow for develop the activities which are economical.

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Economic
For the business performance the economic factor has an impact which is very important at a
local level and international as well which deal with interest rates, inflation and exchange. A
company are performing into a environment of economy which are very big and strongly and
thanks of that for the business are operating in easy mode and within a manner which are
efficacious.
Socio-cultural
This factor have a important influence within the changes of company policies that are
regarding the recruitment process and location and is has a base into the business faiths which
are following though operating into a region which are private.
Technological
For a company, technological factor is another factor which is very important. In regard with
the promotion and communications are some levels which are different through what the
company are managing and extend their services. A company are supplying their service and
products which are made and sell in modes which are different.
Environmental
Environment of business are representing all the factors which are various that has on the
company very biggest influence.
Legal
For maintenance of good run of the company operations are some laws and regulations which
are different, the organisation are supporting all of these laws and regulations.

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TASK 2
a.

Consumers behaviour of buying has the base on the behaviour of buying of the clients
ultimate both into groups or personally which are buying product and service from a
company for usage which are individual.
The responsibilities innovative as is stating the names that are being focused to
purchase the products which are innovative:
This is a buying scenario aspects in that the clients search for the buy product which is
innovative. The actions of marketing can get concentrated on the promotion initiation or
alertness in respect to instigate the clients for alerting the product.
Customized re-purchase
This is a buying performance aspect that delves with the clients to look for products which
are substitute for costs which are better of featured. The manufacturer should be in alert about
the fact that strategies of marketing are various can get associated into performance of
buying. The marketing must to concentrating more on the price and excellent other than
inauguration of new product. (Hoejmose, 2013)

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b.

Segmentation of market represents all market scenarios which are bifurcated for products
or services in team with requirement which are identical which states that every team is
requiring for replaying on positively to the scenario of marketing which are particular. The
market may be divided in department plenty which are various.
Geological positioning
This scenario is very important because geological position may describe a lot to regard of
individuals and teams. Geological positioning is helping the product, price and the aspect of
endorsement aspect may vary for a company.
Age
For the market which is focused is being significantly the age. Products are requiring to
getting planning keeping in mind the bracket age such which the endorsement of marketing
may be focused in efficacious mode.

c.
For a certain product or service which is targeted strategies and is presented by a company is:
Aspect based on undifferentiating scenario
Within this scenario a company are explaining a market which is complete for definitely
product as within the scenario which are focused, plan a mix of marketing which are solitary
and are navigating it among market.

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Focused strategy
Represents the strategy of targeting that is concentrating on the company scenario to
concentrate on a section of individually market by utilizing the marketing mix of individual.
Distinguished Strategy
Represents a strategy which is focused on the aim of company to concentrate on more than
two divisions by increase a marketing mix for every section.

d.
For getting successfully positioning effective products are being needed the planning. After
the target and branding planning is being fulfilled by a company into seeking for illustrating
the products position. By being able to create the positioning of the products schemes they
are attaining the business loyalty. By selecting the audiences the makers carry out the market
strategies which are being called positioning.
A company it creates the ride of the brand on the product base segmentation since it and the
positioning of the products are being related. The products positioning are being explaining
the features as the price, product and application, qualities and classes and more as per the
buyers views. Among market, the companies are trying to place themselves in manners
which might be different from others.
To position the product selected a company first, is making information products data and
after impart details to customers via differently forms such as programmes, TV, newspaper
and advertising. Currently is carried out thought broadcasting and internet, etc. The data is

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including lots of products features such as the view of the experts, services which are fast,
appropriate quality, rebates, less cost, etc.

TASK 3
a.
1. What is the considered when developing a new Product

Product Analysis is the process of identifying, looking at or disassembling a product and

identifying its main features. The aim is to understand more about a product and improve it in
the future. Many factors influence the development of a product, some are listed below.
This is the combination of activities under a company's control that can be manipulated to
achieve marketing objectives.
These can include:

The three Ps of customer service: people, process and physical evidence

The four Ps: price, product, place, promotion

According to Philip Kotler (2006): A product is anything that can be offered to a market for
attention, acquisition, use or consumption that might satisfy a want or need. It includes
physical objects, services, places, organisations, ideas, and people.
In marketing terms, a product is the total utility or dissatisfaction that a buyer receives as a
result of a purchase. It exists at three levels core, formal and augmented.
New product development
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New products can be classified as innovative, replacement or imitative products

To meet the changing needs of the consumer a marketing concept approach new

products need to be developed

New products are the essential core of a dynamic marketing mix and long-run

profitability
New products are a means towards market leadership rather than market imitation
There are many factors to consider in developing a new product.

Scope

Build
busines
s case

Develo
p

Test,
validat
e

Launc
h

Gate 1StageGate 2StageGate 3StageGate 4StageGate 5Stage

2
5
1
3
4

Idea
scree
n

Second
screen

Go to
develo
p

Go to
testin
g

Go to
launch

2. Providing customer convenience when creating Place / Distribution

Place' is concerned with various methods of transporting and storing goods, and then
making them available for the customer. Getting the right product to the right place at the
right time involves the distribution system. The choice of distribution method will depend on
a variety of circumstances. It will be more convenient for some manufacturers to sell to
wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or
customers.
Place or distribution

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The role of this element is to ensure that products and services are available at the
customers convenience in the right place, at the right time, in the right quantities, in
the right condition and with the right degree of advice, installation and after-sales

service
A
distribution

channel

can

be

defined

as

set

of institutions that performs all the activities utilised to move a product and its title to

consumption
A marketing channel comprises individuals and organisations that together ensure the
flow of products and services from producer to customers

A distribution channel is a set of institutions which performs all the activities utilised to
move a product and its title to consumption
Elements of channels of distribution include:

Suppliers

Customers

Intermediaries

Wholesalers

Agents

Retailers

Customer Convenience by Place and the Supply Chain

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Even if the supply chain is made up of independent firms, marketers are

responsible for ensuring customers are not disadvantaged by performance of
any one firm

This requires managing from source of supply through to end users

Involves forward and backward movement of funds, information, materials

and products

Internet is changing supply chains into collaborative networks

Demands of reverse distribution systems, such as recycling goods for

environmental objectives

independent

Exploration
Drilling
Refining/production
Terminal operators Channel
Wholesalers
structure:
Transportation
Distribution
vertical

firms or one

marketing

enterprise?

system?

Manufacturer
Channel
structure:

Wholesaler
Retailer

Customer convenience by Franchising

Franchising is a very complex area, but if you do your research properly and find the right
franchise for you, it can be very rewarding. However, before you start looking at franchise

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opportunities and the process of buying one, you need to initially understand what franchising
is and if it is the right route into business for you.
It is a continuing relationship in which the franchisor provides a licence to the franchisee
to do business and offers assistance in organising, training, merchandising, marketing and
managing in return for a monetary consideration. Challenges include physical distribution
management and logistics, and ethical issues.

Customer Convenience by Better Logistics

Logistics involves the inputting, transferring and outputting materials, goods and services in a
company. Logistics include integrated distributions systems
that handle:

Materials procurement

Raw material inventories

Sales forecasting and production planning

Packaging

Warehousing and delivery

Order processing

Customer service

Customer Convenience by Select A Distributor

Here are some criteria:
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Market coverage

Sales forecast

Cost/profitability

Control

Motivation

Reputation

Competition

Contracts

3. What to consider setting a Price to reflect current market condition

The current price at which an asset or service can be bought or sold. Economic theory
contends that the market price converges at a point where the forces of supply and demand
meet. Shocks to either the supply side and/or demand side can cause the market price for a
good or service to be re-evaluated.

Price is the only element of the marketing mix to generate revenue

Prices
connect
customers
and
suppliers
at
the

of exchange
Prices send signals to customers about factors such as quality, exclusiveness there

are powerful behavioural and psychological aspects to the price element

Price is also a competitive weapon in markets it

point

can

be used to force out or limit competition

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The

ability

to

set

prices

in

market

is

key

element

in market power

Customer-perceived value
Perceived customer value is marketing and branding related concept that points out that
success of a product is largely based on whether customers believe it can satisfy their needs.
This phrase emphasizes that when a company develops its brand and markets its products,
customers ultimately determine how to interpret and react to marketing messages. Companies
spend significant time researching the market to get a sense of how customers think and feel.
Price Sensitivity
Price sensitivity is the degree to which the price of a product affects consumers' purchasing
behaviours. In economics, price sensitivity is commonly measured using the price elasticity
of demand. For example, some consumers are not willing to pay even a few extra cents per
gallon for gasoline, especially if a lower-priced station is nearby
PRICE DISCRIMINATION

Price

different price for the same good or service

The firm must be able to identify different market segments, such as domestic or

industrial users
There must be no seepage between the two markets
The firm must have some degree of monopoly power

discrimination

is

the

practice

of

charging

ETHICAL ISSUES IN PRICING

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Predatory pricing is the practice of selling a product or service at a very low

price, intending to drive competitors out of the market, or create barriers to
entry for potential new competitors.

Price fixing is illegal and anti-competitive as well as unethical. A business

cannot agree prices with its competitors, share markets, limit production to
raise prices, impose minimum prices on different distributors, agree with
competitors what purchase price it will offer suppliers or cut prices below cost
in order to force smaller competitors out of the market.

4. What types of Promotion can be used to market a product

Product promotion is one of the necessities for getting your brand in front of the public and
attracting new customers. There are numerous ways to promote a product or service. Some
companies use more than one method, while others may use different methods for different
marketing purposes. Regardless of your company's product or service, a strong set of
promotional strategies can help position your company in a favourable light with not only
current customers but new ones as well.
A promotional mix is an allocation of resources among five primary elements:

Advertising.
Public relations or publicity.
Sales promotion.
Direct marketing.
Personal selling.

Push and pull strategies

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Push strategy promotional activities designed to push products into distribution channels
and outlets. Strategy encourages outlets to take up stock.
Pull strategy promotional activities designed to pull consumers into channels and outlets.
Appeal to customer needs, wants, and lifestyles, create desire and call to action so customers
demand the brand. Customers wanting the brand encourage channels to stock.
Personal selling is where businesses use people (the "sales force") to sell the product after
meeting face-to-face with the customer. The sellers promote the product through their
attitude, appearance and specialist product knowledge. They aim to inform and encourage the
customer to buy, or at least trial the product.

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5. the 3 extra elements the extended Marketing mix has for services

Customer
Physical evidence

People

Process

Pre
Design
Post
Initial
Purchase
purchase
and
Delivery purchase
contact
activity
activity
production
contact

People
The first P of the extended marketing mix is concerned with the people that are working for
the company. Its important to recruit and train the right people, because this is who the
customers will be dealing with. These include customer service representatives, sales people,
and anyone else a consumer may deal with that represents a company.
Process
The final P, process deals with customer service, and a companys ability to offer a service,
handle complaints, and foresee any issues before they actually happen. These clearly defined
and efficient processes should garner customer confidence in the companys ability to handle
any issues.

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b.
Business Organisation (B2B) compared to Marketing to Customers (B2C)
Size of markets One of the big differences between B2B and B2C marketing is the size of
the markets. Consumer markets are typically much larger than business markets, which them
more susceptible to mass marketing techniques. But the size of the market is product related,
because consumer markets can be as small as or smaller than B2B markets depending on the
product. Generally B2B markets are small, focused target markets and B2C markets tend to
be large target markets.
Shorter and more direct channels of distribution The B2B marketing process may entail
shorter and more direct channels of distribution to the target audience, which is typically
much smaller than the consumer audience for a given product / service. There are exceptions.
Very high end consumer products may appeal to a very small segment of the general
population based on income and or lifestyle.
Sales prospects The B2B sales prospects are very different from B2C. B2B sales prospects
are found in small vertical markets require consultative selling and take longer to sell. B2B
sales are "higher ticket" sales driven by a rational sales approach that requires developing
personal relationships.
Brand value Brand identity in B2B markets is created through personal relationships and
consultative selling. Brand identity in B2C markets is created through repetition and imagery
in advertising and now social media.
Sales process B2B sales require consultative selling (selling based on understanding a
client's needs and developing a relationship of trust). B2C sales are usually direct to the
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consumer or involve a retailer. The sales approach is a traditional product sell of "convincing
the consumer" they need the product or service being sold
Buying process The B2B buying process tends to be more complicated. The process is
complicated by the number of people involved. It is also complicated by the nature of the
product or service being purchased. Some B2B purchases may involve not just a large
number of individuals, but also different divisions, groups, or departments in the
organization, such as R&D, engineering, finance, etc.

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