Business And Marketing Strategies Of London 2012 Olympics Marketing Essay

Olympic is global event, it is world participate event and whole world becomes a one village with one ambition. With this event, more people migrate to London and others people are indirectly participate through media. More migration leads to increase London population and same as more money comes to London, therefore it creates new marketing opportunity in London and UK. Many of multinational companies invest for this big project and every company are trying to increase their sales of production and services. It creates big competition among the same products and service providers. Proper marketing plan is very important to achieve marketing goal of London 2012. Already government and private sector has invested more money for the various projects and improvement of infrastructure facilities, especially Stratford area infrastructure facilities is being improved. At finally they need to harvest profits of this event with successful marketing strategies this project transform the City of London into a product to generate global attraction and marketing places through the delivery of London 2012.

Task 1

Definition of marketing

The charted institute of marketing (CIM) defined marketing as ”the management process responsible for identifying, customer anticipating and satisfying customer needs (requirements) profitably’.

Philip Kotler defined marketing as ‘satisfying needs and wants through an exchange process’. But P.Tailor defined ”Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer”. When comparing all above three differences there is not big differences, but charted institute of marketing (CIM) defined marketing as management process and responsibility and it is specially mentioned, it should be profitable manner, but according to Philip Kotler definition it mention as exchange process. When comparing both definitions with P.Tailor definition it has been defined as providing changing benefits to the changing needs and demands of the customer. Finally, compare with above three definitions, common thing of all three definition is ‘satisfy customer needs and demands with profitable manner”.

Source: http://www.learnmarketing.net/marketing.htm

Business Orientation

Business organizations differ with their orientation. There are four main orientation as production orientation, Sales orientation, Product orientation and Market orientation. Production oriented business is mainly emphasis to produce large amount of output and thereby, they are geting benefits their economies of scale. Sales orientation is mainly emphasis to sell larger amount of output inappropriately of whether the output is required by the customer. Product orientation is mainly emphasis with the quality of its own products and service. A company assume that as long as its product was of a high standard, people would buy and consume the products.

Marketing orientation is mainly emphasis of the customer first and the needs of the business next. The business organizations main ambition is to satisfy the needs of its customer, which is an outwards aspect of business.

Main Characteristics of Market Oriented Organization

Market oriented organization consider the customers first and they share the common value of best quality of products and services.

Market Oriented Organizational has very simple system and their policies are not very difficult.

Market oriented organization Strategies are long term, flexible and participative.

Market oriented organizations concern the ambition of the stakeholders before implement any decision

Decision are being taken on superior external and internal values

Production efficiency is results of the coordination of supply and demands anticipations

London 2012 Project is a market oriented organisation or not

London 2010 Olympic project is key will be key function of recent years of London. There are many companies are targeting this events for increase of their products and services. There is big competition among same products and service providers, with this completion there have to finding solution to beat each other. All of them are targeting same consumers so consumers have many alternatives for their preferences that lead them to select best product and service. When they select best products or service, quality and price are highly considered, with this situation companies have to identify customer behaviour and they have to give more priority for customer satisfaction. This situation create the market oriented business, therefore 2012 London Olympic project will be a market oriented Organization.

B).

Marketing concept with reference to the Olympic marketing activities

There are various elements of marketing concepts. Olympic is huge events in the world many organizations joint with this events and they try to increase their market share with this event, especially multinational companies will lead in this events, most of time they are the main sponsors. With their marketing activities, marketing concepts are very important to achieve their marketing objectives. In here mainly concern about few marketing concepts related to Olympic event as fallow:

Target market

Target market is Defining exactly who we are targeting allows business owners to focus on specific customers and reduce marketing waste. In Olympic game various customers (Segments) will participate, as a one company it cannot target whole customers so they need to identify target customers in effective and efficient manner.

Marketing mix

The marketing mix is generally defined as product, pricing, place, and promotion. As a company must specifically decide on its products or services, the appropriate pricing, where and how it will be distributed, and how it is communicated to everyone. In Olympic events, proper products or service identification is very important, in such big event target customers are more therefore low price and more sales concepts is very important when considering price. Olympic is big place for marketing but distribution system and way of distribution is caused its success. Proper promotion programme create more customers because it is communicate of customers effectively and efficient manner.

Business strategy

Strategy immediately follows planning because strategy is the foundation for the rest of marketing activities. In the process of planning, we must design our strategy: who we will target, how we will target them, and how will we keep them as a customer. In Olympic events unique strategy is displayed by many of companies. Especially transports system of London, it will be expanded because these days population in London will be go up, so regular service is not enough, banking activities will increased with higher money circulations banking sector has to implements new strategy according to that situation.

Customer relationship management, advertising and Promotion, Branding and budgeting are others important marketing concepts related to 2012 Olympic events. All those concepts consideration is lead to sustainable marketing process in this world celebrating event in London.

C).

Benefits and costs of marketing approach for London 2012 Olympic

When organizing such mega events Cost is very high and benefits also same as it, when considering cost it is related to various aspects as follows:

Big investment for infrastructural facilities

Care must be taken to differentiate spending by residents from spending from non-residents, and also to take account of spending that

Advertising and promotional cost is very high

Environmental pollution increased

Illegal activities increase

Increase management and recruitment cost

Implement many facilities for 3 weeks duration and sometimes after that it cannot be used.

Many organizations have to increase infrastructures within short time and it is big investment within short time.

Highly pay for entering with governments barriers

Benefits of marketing approach

The Olympics will provide a boost to tourism and travel to London, during the Olympics and hopefully after Olympic games.

Helps to regenerate the East part of London and this area business Organizations

Encourages sport in the UK, might make the UK have better fitness standards and less obese reducing demand on health care and it lead for success of business organization who are involving in related to business.

Improve transports sector infrastructure and income.

Within short term, Company can increase their sales

Sports equipments demands will be increased, and that type of companies has good opportunity to increase of their sales and innovation of new products and good opportunity to introduce that

Olympic is world participate events, so advertising is major events and it has big completion. Any way companies have very rare opportunity to communicate their massage through Olympic game.

Hospitality industry has big opportunity to expand their service, especially hotels, it has chance to increase their room occupancy and promote their new products and service. And same as textiles industry has big opportunity to introduce fashion related to Olympic game.

Task 1.2

A.)

Macro and micro environmental factors which influence marketing decisions of London 2012

Macro Environment

There are various factors in the macro-environment that will affect the decisions of the managers of any company. Inflammation, recessions, environment pollution, Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. PESTLE model is very important to analyze macro environment of 2012 Olympic game in London. These factors are directly influence making decision of London 2012.

Political factors

These concerns to government policy such as the degree of involve in the economy, during the Olympic game 2012 and before that government will introduce many policies for manage it properly. They will introduce some marketing barriers and special tax policies and etc. So these changes influenced to any organization decision making process. Specially health and safety policies are vital, because in 2012 London population will increased more than present situation and increase the their activities, therefore government has to concern about these situation and they have to change policies according to situation. Immigration policies are another concerning area because there is opportunity to entering illegal people and illegally retain in this country. At the movement infrastructure is improved that will be a big influence for marketing decision.

Economic factors

Government asks to invest to these massive events, big companies have a good opportunity to increase their sales and introduce innovations during this period. So there are required some motivation, it is government responsibility to motivate them giving some economical benefits to them as reduce bank interest rate, bank loan, tax benefits and etc. During this period there will arise many opportunities for the investors and people also ready to spend more money so economically London will change. But still economical recession is exists. Economically factor will major influence for decision making process of 2012 London.

Social factors

In 2012 London population will increase more and various geographical different people all over the world will come here. With the population increase, needs and demand will be increased more, and with different people arriving, different goods and service are demanded. According to above situation, new opportunities and competition enter to market therefore in decision making process is effected social factor more, so organizations have to fully concern about this situation when they are getting new decisions.

Technological factors

During Olympic season and before Olympic many organizations are ready to introduce their new products. Companies’ intent to do innovation parallel to 2012 Olympic, specially mobile phone companies, tourism organization, hospitality organization, banks and etc. During this period technology will do main part of market, because London is a technologically highly improved city. With concern all above situation technology influence for decision making process for marketing in 2012 London.

Environmental factors

Market has to adapt according to such situation, because environmental factor cannot be change and solution adaptation according to situation. Especially during 2012 population in London will increase more same as there is opportunity to increase environmental pollution, when decision making process, organizations need to concern about this situation. More textile companies will introduce fashion to market parallel to Olympic game, at that time they have to concern about climate in London during this period.

Legal Factors

Legal factors are very important to proper market control during this period.

B.)

Segmentation

Market segmentation is the identification of portions of the market that are different from one another market (products or service). Segmentation facilitates the firm to better satisfy the needs of its potential customers. Consumer markets can be segmented on according to the following customer characteristics and behaviours.

Geographic

Demographic

Psychographic

Behavioralistic

Source: http://www.freebizplan.org/business_strategies/marketing/marketing_oriented.htm

Segmentation Criteria for different Products

Hair shampoo

Company can use different market segments for hair shampoo. When considering gender wise they have two market segments as men and women. It can be further segmented according to age wise; there are few segments under age group as Children, young, adults and old people. And another segment is family shampoo. Shampoo can be segmented according type o hair of customer as normal hair, dry hair and dandruff hair.

Hair shampoo can be segmented more segments further, according to customer income it can be divided three segments as high income, low income and normal, but most of shampoos brand is target normal income as common income level because it is not a expensive items as examples: Dove, Sunsilk, Pantene, Clear, head and shoulder

If any company needed, it can be further segmented base on activities as Sport players, students, occupied people and general.

Shoes

There are different market segments for the shoes. It can be categorized under various criteria of segmentation.

There are two Segmentation base on gender wise as men and women shoes. Another segment is based on age level as baby, Children, young, Adult and old people. It can be categorized further segment base on Activities as Sports ware and Casual ware. There is another segment according to Season as summer and winter. Under the demographic Criteria occupation is very important for shoes segment it can be segmented as Professional shoes, Labour shoes and general shoes. Customer income is another practicable segment it is go with social status as high income, low income and middle income (middle class) as examples of Brand for above segments are: Adidas, Nike, Rebook and etc.

C.)

Effect of the segmentation factors and financial capabilities to target marketing strategy

When considering above Segmentation criteria organization has to concern its financial capabilities. Big company like multinational brand, they can invest more money for their production and so they can identify various markets and then production can be allocated according to those segments. Company like Adidas and Nike have big investment power and high market share in worldwide, therefore they have more strength to treat each and every target market. But small company cannot reach every market segment. So such organization should identify most suitable criteria (profitable and economical)

D.)

Buyer Behaviour

When they are purchasing a product there several processes, which consumers go through? These will be shown below.

Problem/Need recognition

Information search

Evaluation of different purchase options

Purchase decision

Post purchase evaluation

Factors influencing the behaviour of buyers

Consumer behaviour is influenced by many uncontrollable factors.

Culture is one main factor which effected behaviour.

Other factors like groups of friends, or people they look up to effect their selection of purchasing a particular product or service.

The customer economical environment also has an influence on consumer behaviour

Marketing and advertising campaign obviously influence consumers buying behaviour

Peoples social status is impacted their behaviour. There are many factors effect on consumer behaviour.

Buying situation of Olympic Branding products of official sponsors

When considering Olympic sponsors, they are big company who are running in UK market; they have good market share and good Brand image in UK and outside of UK as well. Olympic is massive event and worldwide people will come to London, with that situation, many opportunities will be raised and those customer buying power also very high so Brand image is very important factor for buying process. Other than that customer culture and environmental situation in at that time lead to customer buying process, especially considering about British airway they have good opportunity to improve their travel sales. And customer willing to offer more money for this events because their come to enjoy and get experience in here. Advertising will be motivated customers buying process.

1.3 Task

A)

How take competitive advantages of official sponsors in Olympic game

Olympic is Mega event and worldwide people are associated with this directly and indirectly, but most of people are associated with indirectly through the telecommunication, especially internet, television and through other media, it is live events. There are limited official sponsors together with Olympic game, but these sponsors have offered big investment for this event for take sponsorship. Through this sponsorship their main target is increase their sales volumes and popularized their brand name all over the world. With all these, their final objective is competing with their competitors and increase sales of products or Services. Taking sponsorship also big completion because many organization are looking take advantage of such massive event to transfer their massage to customer and this is world one of best opportunity for that.

Under same product or service two companies cannot be a main sponsor and one company takes the chance who offers more for this event. But all the companies need to appear with their brand in this event, so they are unofficially present using various strategies, but all the situation are legal so no one is allowed to remove them, but official sponsors have more unique opportunities those are not offered for unofficial companies, Like as showing brand name with players wares, attached with ground decoration, joint with official telecast, get maximum legal authority benefits from prevent unofficial companies intervention of this events and etc. So it is big completive advantage for them so they should try to properly communicate their massage with this sponsorship otherwise their investment will be waste.

B.)

Effective distribution network for customer convenience

Companies have to properly organize to transfer their massage to customer in London and all over the world. Therefore it should be more effective and efficient way. Main thing is create proper massage to transfer, some companies create unique massage specially targeted for Olympic, some time it is like a mission statement. Companies need to create proper advertisements for reach to customers very effectively. With this events customers demand will be increased according to such increment company need to adapt, especially adequate staff, so they need to plan proper recruitment and selection procedure. Production should be increased so companies have to adapt short time more production. Innovation is another main factor, every company try to innovate new products and service during this season. With all these create a proper distribution net work, skilled human power and technology are vital for proper distribution network.

C.)

Prices set to reflect an organisation’s objectives and marketing conditions

Price setting is very important factor for competition, competitors are always try to reduce cost and price to face to completion and take advantage, low cost and low price strategy is leading to market orientation concepts, but they need to concern about quality of products and services. With all these, quality, low cost and low price are big completive advantage. When price setting, cost of whole process is considered, and some companies are thinking less profit margin with more sales, at that time they try to keep less margin of profit and try to increase sales volumes.

These prices setting depend on company objectives, cost of process and marketing environment. Many companies invest big portion of money for advertising and promotional programme that will lead to increase cost of process. Especially main sponsors are in Olympic game, they have invested more money for their sponsorship and promotional programme. Price setting is very complex process, one company needs to identify competitor price and market environment before fix the price. But most of customers who participates this event, willing to expense more money because they are coming to enjoy with this event and get experience

D.)

Organisation (London 2012) integrates its promotional activities to achieve its marketing objectives

Olympic is huge events and it is popular in worldwide and more people joints with that directly and indirectly, therefore when implementing promotional programme is need to considered more factors. Proper integration of promotional activities is very important, because this massage should go all over the world, so they need to combine with each and every country. Olympic lamp circulation around the world is such promotional event. When preparing promotional programme, it should be match with its marketing objectives. Creative and effective massage transferring is one main step of promotional programme, link with whole media is another step, but more priority for convenient and effective media selection. Using previous Olympic star is very common promotional strategy, but it is more successful strategy.

Task 2

A.)

Marketing mix

Marketing strategic decisions generally categorize into the following four controllable groups

Product 2. Price

Place (distribution) 4. Promotion

These variables categories are known as the marketing mix or the 4 P’s in marketing. They are the variables which marketing managers can control in order to best satisfy customers in the target market. The marketing mix is displaying in the following diagram

Source: http://www.netmba.com/marketing/mix/

Marketing mixes for fast food consumer market Segment

Fast food industry is very popular in busy city like London. There are many ideal companies for fast foods as McDonald, KFC, Pizza Hut, Domino, Burger King and etc. Marketing mixes application is very important process of success of any company. Product is very important most of fast foods content meet and bread, and potatoes, especially chicken, burger, Pizza and Chips are very popular among the fast food because it is convenient to customer and easy to process.

Price setting is very important, because there are many competitors in this industry, especially chicken shops offer low price for customers. Place should be more peoples are moving place, specially city area make more money, because always people are coming to day to day activities and they don’t forget to have fast foods. Promotion is giving massage to customers, when new product innovation, they need to promote it to customers. Many companies like McDonalds, Burger Kings are doing this with their products innovation.

B.)

Differences in marketing products and services to organisations

Selling a service is fundamentally different than selling a product. It is different to customers and same as organization. Service instead of a product, we need to realize that services are intangible, and so it might be a bit more difficult for market customers. When someone buy a product, he or she has something that they can actually put hand on, that can be physically seen and even it can be tested before commit to buying it. Services are much more customized. Services are more complicated and it cannot be offered any one, and it is needed special knowledge selling and buying process. When any organization providing service they need to more concern about potential customers, and also service organization is long run because they need to provide continuous service to customers. As examples: Telecommunication organization, Education organization, transport sector and etc.

When considering differences service and products, it is common for both of customers and organization so answer for above question is yes.

C.) International marketing differs from domestic marketing with reference to London 2012.

International marketing mean it is go beyond the political barriers, some time it will be one country and some time it will be more than one country or all over the world. But domestic marketing locate to political boundaries. If any organization needs to go international market it has to concern domestic country regulation and entering country or countries regulation. In related to 2012 London its marketing is needed to concern both domestic market and international market. Marketing strategies for both market may be differ, because external and internal factors are differ from domestic market and international market.

When one organization applies their promotional strategy, its international strategy may be differs to domestic country strategy. Because each country political, legal, economical, social, Environmental and technological factors are differ, so customer requirements are differ with these external factors. Finally Domestic marketing strategy and international marketing strategy are needed separately implemented, but it is not always differ and some time it may be same.

As an example McDonalds has separate marketing strategy in India comparison to London

Conclusion

Olympic is massive event in world, it is world participate event and whole world becomes a one village for one ambition. With this event, more people migrate to London and others people are indirectly participate with media. More migration leads to increase London population and same as more money comes to London, therefore it creates new marketing opportunity in London and in UK. Proper marketing plan is very important to achieve marketing goal of London 2012. Already government and private sector has invested more money for the various projects and improvement infrastructure facilities. Especially Stratford area infrastructure facilities are being improved. At finally they need to harvest profits of this event with successful marketing strategies.