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1.1 Explain the Various elements of the Marketing process for ACL Company.
Marketing is very important function for any business. Especially when we are
facing a stiff competition by other manufacturers;
itsvery important to understand marketing process for ACL Company. Marketing
can be defined as the process for creating, communicating, delivering and
exchanging offerings that have value for customers, clients or society at large
Ferrell (2010).
The marketing process for ACL Company can be discussed with the help of figure
as mentioned below:
The Marketing Process
1
Situation Analysis
Marketing Strategy
Marketing Mix Decisions
Implementation and Control
organizational goal. Some of the marketing strategy that ACL must conduct is
segmentation, targeting, positioning etc.
Marketing Mix Decisions: Marketing mix is an integral part of business which
needs to make sure that they are marketing the right product to, the right person at,
the right price in, the right place and at the right time (Kumar, 2010). The
marketing mix decisions for ACL might include product development, pricing
decisions, distributions contracts and promotional strategy development.
Implementation and Control: Final stage of the Marketing process for ACL ltd is
to implement its marketing strategy and keep an eye on its progress. If the action is
not going according to the plan necessary corrective actions should be taken to
manage it properly.
Macro Environment
Customers
Suppliers
Intermediaries
Technology
Foreign Competition
Culture
Micro Environment
Customers: Customers are very vital to ACL ltd. Without them the business will not
exist. All the marketing strategies and efforts must be based on satisfying their
needs and fulfilling their wants.
Suppliers: They have a huge influence on the business for ACL Ltd. They are the
ones who supply the raw materials for the production line so it is very important to
maintain the tight deadline of receiving deliveries from suppliers.
Intermediaries: They are the individual or firm (such as agent, distributor,
wholesaler, and retailer) that links producers to other intermediaries of the buyer
(Business Dictionary, 2014). They are very important in ensuring the goods and
services are distributed properly.
Macro Environment Technology: The use of latest technologies on the
production and distribution for ACL ltd plays very important role in its business
activities. So they should be up to date with the latest technologies up to the
industry standard.
Foreign Competition: A cleaning product faces a stiff foreign competition. Cheap
products from abroad will be its competitor therefore they should price and
promote their product accordingly.
Culture: It is very important for the ACL to understand the culture they operate in
i.e. Essex. The culture of south London might be different as of Essex so different
marketing strategy should be conducted.
1.4 Provide an example of a problem that can be used as an illustration to
identify and apply targeting strategies that find an appropriate solution
A target market is a group of people or organizations for which an organization
designs, implements and maintains a marketing mix included to meet the needs of
the group, resulting in mutually satisfying exchanges (lamb et al, 2011).
ACL should use single segment targeting because their capability re intrinsically
tied to the needs of a specific market segment. Some of the good examples include
new Belgium brewing, Porsche, and ray-ban. These and other form using single
segment targeting are successful because they fully understand their customers
needs, preferences and lifestyles. These firms are also constantly strived to
improve quality and customer satisfaction by continuously refining their products
to meet changing customer preferences
1.5 Propose segmentation criteria to be used for the products of ACL in
different markets.
Market segmentation is the process of dividing the total market for a product or
service into groups with similar needs, such that each group is likely to respond
favourably to the specific marketing strategy (Moore, 2008). Market can be
segmented into hundreds of different categories. Usually the type of marketing
segmentation used would depend on the product. In the case of ACL the
segmentation criteria can be as follow.
Geographic Location: This is very important segment as geographic location can
tell a great deal about a person or group. Depending on the geographical location
the price, product and promotion strategy can be different for cleaning products
for ACL.
Age: The age of target market is very important. A product should be designed
with some age range in mind so that marketing campaigns can be targeted
accordingly. Most importantly the kitchen related cleaners are most likely to be
bought by middle aged women. So it should be marketed accordingly.
Purposed segmentation criteria
The purposed segmentation criteria for the ACL can be divided into two groups (i)
consumers of environmentally friendly cleaning products and (ii) members of the
consumer group who are interested in being product distributors. So considering
these factors the marketing should be done accordingly.
1.6 Choose a targeting strategy for a selected product or service of ACL Company.
Once the firm has completed segmenting a market, it must then evaluate each
segment to determine its attractiveness and whether it offers opportunities that
match the firms capabilities and resources. Base on the nature of the products of
ACL, the firms current and anticipated situation and after conducting an SWOT
analysis, ACL might consider little a targeting strategy. Such as
Undifferentiated strategy: It is a strategy in which organizations defines an entire
market for a particular product as its target market, design a single marketing mix,
and directs it at that market (Pride and Ferrell, 2004).
Concentrated strategy: It is a market segmentation strategy in which an
organization targets a single market segment using one marketing mix (Pride and
Ferrell, 2004).
Differentiated strategy: It is a strategy in which an organization targets two or
more segments by developing a marketing mix for each segment (Pride and Ferrell,
2004). Because of the nature of the cleaning products that ACL manufactures. I
would suggest a differentiated strategy for it. Different marketing mix strategies
such as different promotional strategies should be introduced for different products
such as floor wipes as well as oven cleaners. It is very important for ACL to
understand that the customers are different because some may be environmentally
aware customers where as some may not care about being environmentally
friendly.
1.7 Demonstrate how buying behaviour affects the marketing activities of ACL in two
different buying situations.
Consumer buying behaviour refers to the buying behaviour of final consumers,
both individuals and households, who buy goods and services for personal
consumption (Marconi, 2000). It is very important to understand that it is the
decisive process of people involved in buying and using products. There is no
doubt that there are various types of buying situations and the marketing activities
should be different in those situations. To understand this we take these two types
of buying situation. a)
New tasks as the name implies you are planning to buy something new products:
This is a type of buying behaviour in which the buyer is looking to buy new
products. Definitely the marketing activities should be focused on the launch or
awareness campaigns rather than encouraging the buyers to change product. b)
Modified re buy: change in supplier or product in order to reduce cost or improve
quality. This is a type of buyer behaviour in which the buyer looks for alternative
products to either improve cost of improve quality. The producer must be aware
that different marketing strategy should be involved in this buyer behaviour. The
marketing should focus more on price and quality rather than launching product.
Buy one get on free offers or cheap product strategies are some of the
recommended marketing strategy for this buyer behaviour
1.8 Give examples of different product strategies used, by different, similar
companies, to sustain competitive advantage, and justify whether the strategies have
been successful.
A product oriented business strategies focuses on the characteristics of the products
sold and the markets served, not on which kinds of customer needs the products are
satisfying (Hill and Jones, 2012).
This approach obscures the companys true mission because a product is only the
physical manifestation of applying a particular skill to satisfy a particular need for
a particular customer group.
Gillette Company: Gillette Company is a perfect example of the product oriented
strategy; they are focused on producing the best disposable razor blade in the world
today. And because of their strategy they are one of the market leaders on the razor
blade industry. Their blade focused on the product being of the supreme quality
rather than focusing on the customer.
Ford Motor Company: Ford motor company is another example of a production
orientation company. Henry ford made one model in one colour (black), no matter
what the consumer might want. This has proven to be beneficial for the ford
company because they are able to sell that particular product with their interest
rather than with what customer wants.
1.9 Propose a new positioning strategy for one of ACL products or services.
same price (Kumar and Sharma, 1998). ACL will use the above promotional
activities in order to achieve the marketing objective of ACL.
a)Advertising: Advertising is any paid form of non-personal presentation and
promotion of ideas, goods, or services by an indentified sponsor and in include not
only business firms but also charitable, non profit and government agencies
(Muller et al, 2011). Magazines and TV adverts will be used to advertise the
Vacuum cleaner by ACL. We strongly believe that magazines adverts will enhance
its marketing objectives.
b)Sales Promotion: Sales promotion refers to marketing activities other than
personal selling, advertising and publicity, that stimulate consumer purchasing and
dealer effectiveness, such as displays, shows and demonstrations and various
selling efforts which are not taken in ordinary routine (Trehan and Trehan, 2010).
ACL will us different sales promotion techniques such as 10 percent discount until
certain dates or after sales service for 1 year etc.
c)Public Relations: It is the discipline which looks after reputation, with the aim of
earning understanding and support and influencing opinion and behaviour. It is the
planned and sustained effort to establish and maintain goodwill and mutual
understanding between an organization and its publics (CIPR, 2014). This will be
maintained by ACL by being eco friendly. Using green technology on its vacuum
cleaner will help ACL to be ethically aware technology so that its PR will be
positive.
2.5 Analyse the additional elements of the extended marketing mix for the above
mentioned product (Vacuum cleaner).
Marketing mix includes any and all elements that may potentially satisfy the
consumer and over which the form has some level of control (Brown, 1991). It
includes four broad categories of variables known as the 4 Ps: Product, price,
place and promotion. In addition to the traditional four Ps the additional Ps have
been added because today marketing is far more customer oriented than ever
before and because the service sector of the economy has come to dominate
economic activity in the country. The additional elements of the extended
marketing mix are:
a)Physical Layout: ACL is very much aware about the importance of the high level
of presentation in the retail shop. ACL will present their store in such a way that
not only the customer easily finds their way around the store but they will also find
3.4 show how and why international marketing of ACL differs from domestic
marketing.
International marketing is the multinational process of planning and executing the
conception, pricing, promotion and distribution of ideas, goods and services to
create exchanges that satisfy individual and organizational objectives, thereby
bringing within its ambit markets situated across the world (Paul, 2008).
Comparison of Domestic marketing with international marketing
Some of the comparative advantages and disadvantages of both marketing systems
remain similar. The firms undertaking international or domestic marketing follow
the same basic principles of marketing however at times; international marketing
poses problems to the forms at their different levels of operational efficiency. There
is no doubt that ACL should differ their marketing at international level and
domestic level differently. There are few issues which makes internal marketing of
ACL different from the domestic one which is discussed as below.
a)Political and Legal Environment: The political and legal environment is the
actions taken by the government, which might affect the daily business activities of
any business or company (The Law Dictionary, 2014). These actions might be
national or international or domesticated. There is no doubt that ACL should
consider and respect the laws of different countries. The trade law in EU might be
different than the trade law in Asia, so it is very important to understand the local
law and act accordingly.
b)Cultural Environment: Cultural environment is the culture on which the
business operates. It represents the whole set of social norms and responses that
shape the knowledge, belief, morals, attitude, behaviour and the very way of life of
a person or a group of persons (Sharan, 2006). The success of the ACL will largely
depend on the understanding of the local customs and cultures. It is very important
for them to understand the law in which they operate and act accordingly and try
not to be immoral and unethical.
c)Competitive Environment: The competitive environment, also known as the
market structure is the dynamic system in which your business competes (Mark,
2014). While competing on the international level its very important to do a
competitive analysis. This will provide a valuable analysis of the firms
competitive position on the market. A successful competitive analysis will help the
firm to plan strategically and gain a competitive advantage which is vital to any
business like ACL
3.5 Use critical reflection to identity the limitations of the recommended
marketing mixes.
The marketing mix has been recommended in the power point presentation. As a
strategic company; ACL should understand their limitation so that in the worst case
scenario the market failure wont come as a surprise but as a expectation.
One of the main criticisms of the marketing mix is that it is neither a theory nor a
model but rather a tool, with much of its value depending on how it is used. In
practice this tool has tended to emphasise the ingredients and the structure at the
expense of the processes (Little and Marandi, 2003). For example, one of the
recommended promotional marketing mixes for the eco-friendly segment of ACL
is to provide one year free warranty for the consumers. It is very important to
understand that the marketing mix framework cannot cross its limit. That means it
is only very functional in near the beginning of the marketing concept. It is the
time when all products stand for a bigger segment. It is very important to analyse
the cost associated with providing one year free warranty. The marketing mix does
not really analyse the cost associated with the recommendation so it can be seen as
one of the limitation of the recommended mix.
The recommended marketing mix for ACL has another major drawback that is; it
does not address issues related to productivity in terms of both quantity and quality
of service delivery. In integral services management improving productivity during
service is a requisite in overall cost management; but quality as defined by the
customer, is essential for a service to differentiate itself from other providers.
3.6 Explain how you have planned, managed and organised your work for this
unit.
This unit has been an eye opener and a learning opportunity for me. A lot of
research has been undertaken for this unit. Research being an intensive and
purposeful search for knowledge and understanding of social and physical
phenomena (Kumar, 2009); an intense literature search has been conducted on the
subject matter of the marketing to prepare and present the work for this unit. The
reference section will provide an excellent understanding of the wide research
conducted to write this price of work.
Time management was very crucial for this unit. Despite working part time for
living; time was very limited for me. However managing time has helped me to
finish this unit. First various the nature of ACL need to be understood to
understand the different marketing theories and mixes and strategies related to the
ACL. The marketing segmentation has been a very core on finishing this unit. The
proper marketing segmentation has enabled me to analyse the marketing strategies
which than led me to write the recommended marketing mix for ACL. Last but not
least writing this paper has enlarged my knowledge base and will definitely look
forward to work in the field of the marketing if I get the opportunity.
3.7 Justify your plan and demonstrate lateral thinking associating with
question 3.5.
Question 3.5 is very critical in nature because it has helped me to understand that
marketing mix is a important tool in setting the marketing strategy for any
company but equally there are limitations surrounding the tool itself. As a
marketing consultant, it is very important to justify the recommendation you have
made in the mixes. Measure has to be taken to increase the validity and reliability
of the recommendation made on the mix. It is very important to take measure so
that the success of the recommendation will be positive rather than negative. I
would recommend few other things rather than the regular marketing mix to
enhance the companys competitive advantage. They are discussed as below.
a)The business social network should be used by ACL to extend their network. As
people hear the name more often there is a good chance that they will check out
the product itself.
b)In todays digital world, the website and blogs are very important tools to convey
the message across the large audience. To its very important for ACL to create a
blog where the consumer can write review or anything and create a good looking
informative website.
c)Press release should be conducted to let the local media know about your
business and upcoming campaigns. Your company probably has some awesome
events, but nobody cares if they dont have a chance to know about it.
REFERENCE