1b. marketing

7/28/2019 1B. Marketing

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MarketingTo produce a breakdown of the principles

and processes involved in formulation a

marketing strategy including those of market

research

This draft deals with in-depth analysis of marketing functions and its importance

for the modern business.

2011

Shebi

[Type the company name]

1/1/2011


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ContentsMarketing ................................................................................................................................................................................ 3

Marketing mix ..................................................................................................................................................................... 3

Product Mix ..................................................................................................................................................................... 3

Price Mix.......................................................................................................................................................................... 3

Promotion Mix ................................................................................................................................................................ 3

Place Mix ......................................................................................................................................................................... 3

People ............................................................................................................................................................................. 3

Process ............................................................................................................................................................................ 4

Physical Evidence ............................................................................................................................................................ 4

Segmentation .......................................................................................................................................................................... 4

Benefits of segmentations .............................................................................................................................................. 4

Branding .................................................................................................................................................................................. 5

Advantages of branding ...................................................................................................................................................... 5

SWOT....................................................................................................................................................................................... 5

Factors affecting product promotion ...................................................................................................................................... 6

Planning a promotional campaign .......................................................................................................................................... 6

Be Specific about Your Goals .............................................................................................................................................. 7

Be Opportunistic ................................................................................................................................................................. 7

Be Persuasive ...................................................................................................................................................................... 7

Be Organized ....................................................................................................................................................................... 7

Marketing research ................................................................................................................................................................. 7

Business planning and Expansion ........................................................................................................................................... 8


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MarketingJohn O'Shaughnessy defines the definition of marketing in strategic point of view as, Marketing covers those activities

that are related to the organization to those parts of the outside world that use, buy, sell or influence the outputs it

produces and the benefits and services it offers. (O'Shaughnessy, 1995). Old definition of marketing has defined

marketing is all about concerning with buying selling and production activities. Another school of thought is flow of the

goods and services from producer to consumer. So we can define the marketing as it is a social and managerial process

in which we identify the needs, wants and demands of the customers with an offer against some value in return.

Marketing mix

Marketing mix is the term that refers and first used in Harvard Business School, London. As per Prof. Neil H. Borden,

Marketing mix is all about a strategy for the achievement of the objective of the marketing. It is comprised of seven

ingredients that are;

1. Product2. Place3. Price4. Promotion5. People6. Process7. Physical evidence

Product Mix

This is the major part of the marketing as this covers the value of the customers. In includes physical product, services,

product brandings, packaging of the product, color styles, modification as well as innovation. Businesses are providing

and offering their offers in shape of product and services with more USPs that is Unique selling proposition.

Price Mix

Second factor that affects the marketing mix of the organization is price mix. As it is directly engaged with the volume of

sales and generation of the revenues. It includes price determination, objectives and policies, fixation of the price as weas discounts and packages, policies for concession, profit margin, terms of payments and credit policy etc.

Promotion Mix

Promotion mix is the element that is all concerned with persuading and attraction of the customers. Promotion is

basically a communication between customers and organization about the product on offer. It includes personal selling,

relationship management, displaying and demonstration of product, promotional activities, and exhibition etc.

Place Mix

Place is the element that creates time, place of the utilities. It is also well known as the distribution mix that is basically a

combination of decisions that relates to channels of distribution, storage facility, location, transportation and

warehousing etc. (Borden, 2001)

People

People include the work force that is involved in marketing and promotion as well as in operation of marketing activities

These people might be Marketing and sales team, brand managers, promotional partners, freelance marketers, referral

based customers etc.


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Process

In this head we basically make analysis of the process and structure of the marketing department as well as the process

to be adopted to perform certain activities. These activities are all about above mentioned first 4 Ps and it helps and

assists us in finding potential problems and obstacles that may arise during the implementation of the strategy.

Physical Evidence

All efforts means nothing when there is no physical evidence of organization and product or offer in the market.

Companies spend Billions of the budgets on heavy advertisements and promotional activities as well as on distribution

networks to make their entity physically present in market where a number of players are working.

SegmentationGoal of every business profit oriented organization is to earn profit and increase the shareholder worth. Similarly goal of

the marketing department is to meet the demands and wants of the customers by means of offering the right product to

the right customers at the right time.

Following are the few steps that are involved in segmentation as under; (Young, 2008)

Benefits of segmentations

Benefits enjoyed by the segmentation of the market can be explained with an example of a washing detergent that how

they can provide values with market segmentation.

Benefit Segmentation variables Examples of Market segmentation

Sensory Segment Practical segment

Principal benefit desired Gentle to hands

Good fragrance

Little washing need

Cleans cloths

Demographic users Housewives Working mothers

Brand favored Tide, Surf Generic

Physical form of detergent Bar Liquid

Acceptability of price Competitive cheap

Current situation

Consumer Needs

Segment market

Periodic evaluation

Implement strategy

Choose strategy

Develop product

positioning


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Business organization enjoys following advantages from the segmentation of the market.

Reduce marketing expenses Effective marketing campaign Improves customer satisfaction. Increase credibility of the business Clearly and identify their target audience Addressing the needs of that particular audience Development of specific marketing plans

BrandingBranding is the process that involves the creation of unique names and images for a certain product in the mind o

consumers. It is created by communication by means of advertising and promotional campaigns. Aim of the Branding is

to establish more significant and unique presence in the market that may attract the customers as well as retains the

existing loyal customers.

Advantages of branding

As branding is the unique proposition of the business so branding helps the organizations in following ways like

Memorizing the brand of organization Building loyalty of the customers Familiarity Premium prices and premium image Extensions Greater equity of the business Lower the expenses of marketing For consumer less risk bearing factor

SWOTSWOT refers to the analysis that is helpful in designing and making the strategic decision for the organization. This

strategic decision is also named as Strategies that are designed to achieve the objectives of the organization. We assume

the company of TESCO as an example and take a SWOT analysis of this company that can help us in finding relevant

strengths, weakness, opportunities and threats.

Strengths Weakness

Rapid increase in market share up to 13 % Insurance TESCOs online services Brand Value Market leader of UK

Reliance upon the UK market Debt reduction Sign point to serial acquisition

Opportunity Threats

Non-food retail stores Health and beauty Further international growth

UK structural change could spark a price war Overseas returns can be decreased Challenge from wall mart and ASDA Expansions of competitors internationally


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Factors affecting product promotionThere are a number of factors that affects the promotion of the product and organization in many ways. These can be

internal or external that can be controlled or may not be controlled in some cases.

As per Charles W. Lamb, Joseph F. Hair, Jr., Carl McDaniel in book Marketing states these factors as

1. Nature of ProductIt depends on the nature of the product that what type of promotional campaigns is needed. If the product is purely forrural areas where market is complex and product is not FMCG, then we have to be engaged in direct marketing and

direct source of communication. By this means we can convey the message to the right audience with some modes like

radio, news papers, Event coverage etc.

2. Stage in PLCIn start of the product promotion, business sometimes spend billions to promote the product but when the market is

developed and people start knowing the brand name of that product then companies make it regular after certain

arrivals or at certain points where they offer some special packages on offer.

3. Target market characteristicsRight message at the right time to right audience is the key to good promotional campaign. Before the promotional

activity we have to see the audience that who are they, what is their religion, society, environment, political influence,

nature, status and other characteristics. With complete information we can design the promotional campaign in such a

ways to make it more attractive for the clients and to make it better.

4. Buying decision5. Availability of the funds6. Type of promotional strategy

a. Pull strategyTo give incentives to the retailers and wholesaler

b. Push StrategyTo give incentives to customers

(Charles W. Lamb, 2007)

Planning a promotional campaign

In planning any campaign or strategy businesses have to see the achievement of the objectives that either it satisfies theorganizational objectives or not. Following are some important point to keep in mind when designing any promotiona

campaign

These might be in shape of many aspects like

Demand generation Awareness rising campaigns Sector development campaigns Sales supportive


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Marketing oriented Brand supportive

Be Specific about Your Goals

1. To develop a frame work that what are the measures to be adopted for the campaign

2. To analyze the all resources for the organization and what are the objectives

3. Discussion in the issue that can be encountered, and how to solve those issues

Be Opportunistic

Basic role of the promotional campaign is to grab or avail the opportunity for the business. When designing a campaign

sometimes we have to develop a camping limited to some boundaries and these are well defined. And many times

company offers big deals that create more opportunities for the business.

Be Persuasive

In any activity planning when business is also interlinked with partners and other businesses, they have to take a great

care for them also. They have to take care by means of keeping their interest in businesses.

Be Organized

Being organized in every aspect of planning towards implementation and monitoring and controlling is basic part of the

promotional campaigns. Because through these campaigns organization start getting some good feedback from market.

That means now we have to tackle those incoming feedback that might be in shape of demand generation and might be

in shape of data of the customers etc. At this point we have to be prcised that how to tackle this data and how to

respond them.

Marketing researchResearch is basic element that is defined by Burns in his book marketing research as, The AMA has defined marketing

research as the function that links the consumer, customer, and the public to the marketer through information. This

information is used to identify and define the marketing opportunities and problems that generates refine, and evaluate

marketing actions; monitor marketing performance and improve the understanding of marketing as a process. (Burns,

2007)

Marketing research is of two types;

1. Primary research2. Secondary Research

Primary Research:

Sak Onkvisit, John J. Shaw has defined the primary research as , it is the information that is collected, generated by

original research tailor-made to answer specific, current research questions. (Sak Onkvisit, 2008)

Following are some advantages of the Primary research;

1. Specific required information2. Relevent data as per requirement3. Up to date data collection from authenticated source

Disadvantages of primary research is


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1. High cost2. Time taking activity3. One person is not professional in all type of research

Secondary research

Sak Onkvisit, John J. Shaw has defined the secondary research in book International marketing as, the information that

is already been taken, generated for the other purposes and is thus readily available. (O'Shaughnessy, 1995) At this

point this thing is interesting that advantages of the primary data become disadvantages for secondary data, and

disadvantages of primary research are actually advantages of the secondary research.

Business planning and ExpansionDevelopment of the business plan is very complex and its importance is as important as a soul presence for business. It

take years to develop the business and all of the based is the business plan. That is implemented, monitored and

controlled. In business plan we discuss each and every feature that is part of business. Following are some points that a

business plan must address when planning.

The following sections should be included in every business plan. These are comprised and gathered from two differensources that are internal and external sources of information.

1. Summary of the business plan2. Overview of the business3. Vision and mission4. Objectives5. Status and activity of business6. Overview of the operations that will be conducted7. Products & Services on offer8. Marketing Research9. Market Analysis10.Marketing and Sales Strategy11.Stake holder analysis12.Competitors analysis13.Competitive analysis14.Team management15.Financial plan16.Strategic time frame17.Activities derived from strategies18. Indicators of success (targets)

Expansions of the business are based on following heads

1. Sales performance analysis2. Business operation analysis3. Asset analysis4. Targeted market analysis5. SWOT analysis6. Options for Business development and growth7. Recommendations for Business development and growth


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8. Supply chain management9. Brand building techniques10.Sales techniques11.Marketing strategies to develop market12.Options for business expansion funding13.Recommendations for business


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Bibliography(2001). In P. N. Borden, Principles of Markeing (pp. 5-7).

(2007). In Burns, Marketing Research (p. 8).

(2007). In J. F. Charles W. Lamb, Marketing (pp. 452-457).

(1995). In J. O'Shaughnessy, Competitive marketing: a strategic approach (p. 4).

(2008). In J. J. Sak Onkvisit, International marketing: strategy and theory(p. 254).

(2008). In F. C. Young, Principles of Marketing' 2008 Ed(p. 111).

1b. marketing

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