Elements Of Marketing Concepts

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2nd Jun 2017 Marketing Reference this

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Introduction

The marketing environment has been changed due to the technological advancement and globalization (Kotler et al., 2012). In addition, the marketing efficiency is completely responsible to make the sales of a product which increase the profitability of the products. This paper is basically designed to illustrate the key concepts to make a training session of the Barclays. Barclays is currently acting as the global retail bank and the bank is consistently doing well in the financial market. Here, the key concepts are illustrated with the relevant example and theoretical background.

1. Task One

1.1 Elements of Marketing Concepts

According to Kerin, (2012), the concept of the marketing is changing and evolving due to the continuous improvement of technology and huge advancement of the globalization. Whilst, the business world is completely focusing on the customer and not all business organization do not follow the marketing concept. However, Kerin, (2012) pointed out, marketing concept is considered as the penetration of marketing mix. Therefore, the marketing mix includes product, price, place, and promotion (Kotler et al., 2012) which are considered to take responsibility to fulfill the needs, wants, and demands of target customer. Here, 5cs also considered which represents the customer, context, company, collaboration, and competitors (Kotler et al., 2012). Here the explanation for the elements of marketing can be described as the product represent the problem that is going to solve, whereas promotion provide the information to the customer, moreover, price is the exchange value for the producer and buyer, and place determine which area need to take into consideration. For example Barclays considers the marketing mix to develop the marketing concepts (Kotler et al., 2012). On the other side, 5Cs determine how the company determines the strategy considering the customer, company, context, competitors, and collaborators (Kotler et al., 2012). So, elements of marketing concepts help to take best alternative marketing plan as Barclays.

1.2 Benefit and Cost of Marketing Orientation

According to Kuester and Sabine (2012),

“Having a marketing orientation means your company emphasizes the needs and wants of customers in all facets of operations.”

http://www.emeraldinsight.com/content_images/fig/0070360911001.png

Figure One: Marketing Orientation. Source: Laermer, R.; Simmons, and Mark, (2007).

The point is that, the product and services is produced and developed particularly to meet the need, want, and demands of the customer. But, Shell and Ellen (2009) explained that, the marketing orientation is completely contrasted with the product orientation and product orientation is considered as the product engineering and product differentiation. However, the marketing orientation is completely different part to meet the customer demands and satisfaction. Here, Barclays can be considered as the genuine example which has designed marketing orientation to catch the customers. In the following table the benefits and costs of marketing orientation considering Barclays are listed in accordance to Blackwell et al., (2006),

2. Task Two

2.1 Macro and Micro Environmental Factors Influencing Marketing Decision

Organization need to correctly identify the opportunities and monitor the threats to match the changing pattern of the competition and market. However, Martin and Brett (2003) pointed out, the key concepts are considered the understanding of micro and macro environment which influences the major marketing decision. To develop a successful relationship with target customer the identification of the macro and micro environment of marketing need to understand. Here, figure four is showing the macro and micro environment of marketing. According to Kuester and Sabine (2012), smart manager always try to proactive decision making rather than the reactive considering the marketing environment. For an example Barclays is operating business globally and the global marketing environmental factor is influencing the Barclays marketing decision. When Barclays try to increase the profit margin numerical influence is exists due to the macro and micro environmental factor of marketing. But this problem is successfully monitored and controlled by the Barclays’ manager like when the foreign competition is high the company can successfully cope with the marketing factors.

2.2 Segmentation Criteria for Two Products

Ademola and Owolabi (2005) argued that, a particular characteristic is shared through the market segmentation technique with the whole customer group and the market segmentation is determined on the basis of the age, life style, life stage, geography, and occupation. For an example, the segmentation of the Barclays product is Within the market of personal banking, the segments could include categories such as students, graduates, ‘new to work’, mature, and families. By identifying different market segments, organization can ensure they are providing products or services to meet the needs of these customers (Martin and Brett, 2003). In addition to this, appropriate promotional techniques can be used to reach the people in the separate segments. Through segmentation, Barclays has been able to devise appropriate banking offers for customers in different segments. This approach is helping Barclays to improve its market share of the student accounts market. Barclays believes students constitute a very important market segment for the business. Students may be choosing a bank for the first time and Barclays hopes to retain these customers. On the other side, Coca-Cola has different techniques to maintain the segmentation. However, Coca-Cola aims to focus on the market of work smart which generally includes the popularity of youth. The following figure is representing the segmentation technique of the Coca-Cola. Coca-Cola needs to focus on the younger people.

2.3 Targeting Strategy

When a firm is done the segmentation then the firm tries to find out the target market which need to matches the capabilities of the firm as well as product. However, Sheth-Voss et al., (2010) argued that, the decisions need to comprise with the segments, product offerings, and which products is targeting which market. For an example, Coca-Cola needs to target the potential customer who is thirsty and the all the groups can be targeted. But, Coca-Cola mentions the age group which targets the 18-25 years young people. This is covering 40 percent of the total age segment. Finally, Coca-Cola is targeting the 15-25 years people and which is cover the 40 years old people. On the other side, the market target is not specially mentioned the gender both male and female included the market targeting strategy.

2.4 Buyer Behavior affects Marketing Activities

According to Levi (2007), the buyer behavior has different impact on the marketing activities in different situation of buying. For example a new buyer behavior differs from the straight re-buyer situation. Some buyer acts as routine response to the same products where as the modified buyer may have different linkage to the buying decision. Here, Levi (2007) also distinguished a new product buying decisions affects the marketing activities in the way of creating adaption ability. Therefore, the company needs to attract the customer from the hearing to final adaption. For that reason, the organization needs to develop the marketing plan for the development of the new buyer awareness. For an example, Barclays designed the message in the marketing activities as “Take one small step”. This slogans is attracted the new customer as well as helped to developed the awareness, interest, and adoption ability of the new buyer. On the other, the straight re-buying situation is more friendly that of new buying situation. For an example, the loyal buyer of the Coca-Cola has huge trust and they are adopted with this brand. In this case, Coca-Cola is focusing on the core benefits of the product which is more convergent with the marketing activities. So, the straight re-buying technique has positive impact on the marketing activities of the organization and that buyer is bringing the competitive advantage for this organization (Kotler et al., 2012). Because, when the organization designs the marketing for the different buying behavior the organization can increase the customer loyalty.

2.5 New Positioning Strategy

The positioning is described as how the potential buyers see the products. According to Kotler & Keller (2012),

“The position of a product is the sum of those attributes normally ascribed to it by

the consumers – its standing, its quality, the type of people who use it, its

strengths, its weaknesses, any other unusual or memorable characteristics it may

possess, its price and the value it represents.”( Kotler & Keller, 2012, p 31-34)

For example, the Mercedes is positioned for Luxury where as the Volvo is positioned for safety. So, positioning can be link with the battle of mind because the market becomes the playground of positioning. Here, The Nokia can be positioned for enhanced memory and flexible use of the operating systems. Recently, Nokia’s brand message fallen, so the new marketing technique can be designed on the strong positioning message like the affordability of use.

3. Task Three

3.1 Product Development to Sustain Competitive Advantage

The competitive advantage is considered as the strategic advantage which is achieved through the strategic action over the market compared to the same competitive industry. However, the organizations gain the stronger position through the achievement of the competitive advantage (Kotler et al., 2012). In the competitive nature of the market a firm can achieve the competitive advantage through the product development in line with the differentiation and positioning techniques. In that position, Onkvisit et al., (2004) argued that, the product is differentiated by the prime service quality which brings the special benefit to the customer. Finally, the competitive advantage helps to achieve the loyalty of the customer which enhances the brand loyalty.

3.2 Distribution to Provide Customer Convenience

According to Joshi, and Rakesh (2005), organizations try to provide customer convenience through the distribution systems of the organization which also consider several systematic ways. In order to provide the best service in the distribution channel firms consider huge benefits which influence the customer convenience (Onkvisit et al., 2004). This can be merged through the example of the Amazon.com. Amazon.com makes the distribution channel which is more convenient for the customer. Specially, Amazon.com provides the standard free shipping facility for the products which is advertised through Amazon to provide more convenient service for the customer. This is possible to provide the convenient service when a firm has the available distribution centre like Amazon. So, the good distribution system helps to make the faster purchase and sales which increase the profit margin.

3.3 Prices are set to reflect an organization’s objectives and market conditions

The marketing aspects include how the price needs to set to make the organization successful. However, Hollensen and Svend, (2011) pointed out some aspects are considered in order to maintain the organizational goals and objectives. Firstly, the producer need to control the cost to make the product and the fair cost need to incurred, otherwise the business may lose money for high production cost. Secondly, the distribution cost and promotion cost should keep into consideration so that the product price cannot be high priced, because the promotion cost is included with the product price. However, the product and the company need to separate to attract the certain class of customer which reflects the price of the product to achieve new customer (Kotler and Keller, 2012). Finally, the marketing mix and the organizational objectives need to match with the price to make the company profitable as every company not to stay at break even.

3.4 Promotional Activity to Achieve Marketing Objectives

The core marketing objective is to make profitable relationship with the customer who creates value for both parties including buyer and seller. However, organization needs to communicate with the customer to provide the information of the products as well as the value propositions (Paliwoda et al., 2008). This communication systems need to coherent with the promotional techniques which increase the brand value of the organization. Just good relationship is more than enough to build the profitable customer relationship which fulfills the marketing objectives. For that reason, organization has huge consideration on the promotional mix (advertising, personal selling, sales promotion, public relation, and direct marketing) (Kotler et al., 2012. For example Unilever has continued the integrated marketing system through the utilization of the digital marketing space.

3.5 Extended Marketing Mix

The marketing mix model is considered as the basic of the marketing program, earlier the marketing mix has four Ps (Product, Price, Place, and Promotion). But, now the marketing mix has the 7 Ps which included new three dimension of the marketing like people, process, and physical evidence.

http://finntrack.co.uk/images/Marketing_Mix_Diagram_-_7Ps_L.jpg

Figure: Extended Marketing Mix. Source: Kotler & Keller (2012).

Firstly, here, people are considered as the people have direct and indirect involvement in the consumption of any service and product like the knowledge workers, employees, management and consumers. Secondly, process is the mechanism which is comprised with the services and consumer like customer management process and process helps to assist the organization for delivering services. Thirdly, the physical evidence means the service must be tangible for judgment on the product quality (Paliwoda et al., 2008).

4. Task Four

4.1 Marketing Mixes for Two Segments of Consumer Market

Marketing mix is the most important and essential tools which help market products and services. To relate the two markets it can be started with the example of Sony audio and visual system. Firstly, the product is designed to segment on the basis of the geographical location where the UK market and Indian market is completely different. Secondly, the price of the Sony products differs from the UK market in the India. Thirdly, the distribution channel of Sony products is much higher in the Indian market than UK market. Finally, the promotional technique is differentiating in the UK market including the media of the promotions. The customer market is differs but organization need to communicate depending on the market structure.

4.2 Differences between the Marketing of Products in B2B and B2C Market

Kotler and Keller (2012). argued that, “Marketing products and services to an organization is different due to the fact that those within an organization are usually employees of their assigned departments”( Kotler and Keller, 2012, p 31-34).

The business to consumer market is different from business to business market, the following table two showing the basic differences in accordance with Hollensen and Svend, (2011),

Business to Business

Business to Consumer

Easy buying process

Difficult buying process

Expensive transaction

Cheaper transaction

Cost is higher than the B2C market

Cost is lower than B2B market

Formal buying behavior

Informal buying behavior

No emotional attachment

Having emotional attachment

Focus on the features

Focus on the price

Table Two: Marketing B2B Vs B2C market

4.3 International Marketing Differs from Domestic Marketing

International marketing and domestic marketing has some differences and similarities which brought the different aspect of the international marketing plan. But, Hollensen and Svend, (2011) argued as, the difference is most important rather similarities. The international marketing differs from the domestic marketing due to the tariffs and custom duties, quantitative restrictions, exchange controls and local taxes. Therefore, the different legal obligation contributed to be different. However, the most important issue is cultural differences which articulated the higher differences. For an example, the UK marketing environment and the Pakistan marketing environment not the same which helps to increase the marketing difference in domestic and abroad. Finally, although the domestic marketing and international marketing has some differences, the objective is same which is designed to create value.

Conclusion

In brief I have been suggested to make a training session for 10 mid level manager, which is the interesting work. Firstly, I will organize the basic of the marketing ideas in collaboration with the approaches. In addition, the ability to make the creative product aspects will be measured which have the demonstration over the total marketing plan. Finally, I will focus on the development of the new products in my training session, because I believe where is the innovation, there is the profit.

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