Entities Which May Be Marketed Marketing Essay

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1st Jan 1970 Marketing Reference this

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According to Kotler identified the following 10 types of entities which may be marketed. According to Kotler marketing management is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering, and communicating superior customer value

Physical goods that may be manufactured produced in farms or mined. These account for the bulk of the marketing efforts in most of the countries. Each year companies globally market billions of fresh canned, packed, and frozen food products and millions of automobiles and electronics. Due to the internet individuals can also effectively market their goods.

Services:

These are intangible products that involve performing some service for the customers. This may be service performed on the customer, like a manicure, or on customer’s possessions, like pet grooming , As economies advance more efforts are devoted to production of Services For instance in U.S the economy consists of a 70 – 30 services to goods mix which include hotels, car rental, banking

Events:

Time based shows such as New Year celebration, trade shows artistic performance and company anniversaries are promoted by marketers aggressively to both companies and consumers due to huge financial rewards earned through sales.

Experiences:

By orchestrating several services and goods, a firm can create stage and market experiences. (Kotler & Keller 2009) Walt Disney world magic kingdom represents experiential marketing whereby Customers visit a fairy kingdom, a haunted house or a pirate ship and experience how it feels like. For example the HARD ROCK café offer an experience whereby they can enjoy their meal or see a band in a live stage.

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Persons:

Involves marketing of a celebrity or of a candidate in a public election. People such as Madonna, Michael Jordan, Oprah Winfrey and the Rolling Stones have been really successful in their careers mainly because of how well they have marketed themselves. Management consultant guru Tom Peters a master at self branding has advised each person’s to become a “brand”.

Places:

Cities, states, regions and nations, compete actively to attract tourists and investment through factories, company headquarters and new resident. (Kotler & Keller 2009) Place marketers include economic development specialist, real estate agents, and national tourism agencies.

Properties:

This could be physical properties like real estate or intangible rights of ownership of financial property such as stocks and bond. Properties are bought and sold on regular basis and this requires marketing.

Organizations:

This basically refers to building positive image of organizations, such as companies, universities, and charitable organizations to attract customers. For example Philips the Dutch electronics company puts out ads with the tag line “sense and simplicity” to convince costumers that their products are easy and simple to use.

Information:

Information can be produced and marketed as products Books are the most common means of selling information, but there are many other type of information marketed. For example educational institutions produce and distribute information at a price students and communities.

Ideas:

Every market offering includes a basic idea. (Kotler & Keller 2009) In addition ideas may be marketed by themselves. For example Charles Revson observed “in the factory, we make cosmetics; in the stores we sell”. Products and services are platform of delivering some idea or benefit.

Market entities for Apple Inc

Goods

Apple designs and manufactures electronic products which include iPhone, iPod, iPad and the iMac

Services

Other than manufacturing electronics Apple provides complementary services such as the App store, after sale services which include customer service and warranties ( refereeing to reading material 2)

Events

Apple participates in the annual Macworld expo which  is a trade show dedicated to the Mackintosh  platform where attendees can visit the exhibits and learn more about Apple related products

Experience

Apple offers an excellent retail experience trough in their official stores by training their staff to be friendly to customer.

Information

Apple offer information to the customers who sign up for the membership program through their Macworld magazine.

Organization

Apple inc has built a strong brand image over the year through delivering high quality products and excellent customer service. The company is seen as the most reputable brand in US business in 2012 (Ben Camm-Jones)

b) What are the ways Apple used to retain her customers? (Hints: Chapter- Customer

Loyalty)

Creating superior products, services and experiences for their target market. Apples dedication to design is so strong in that the design team is given first priority over the engineering team. Which means the designers dictate the mold and user experience and engineers have to match the hardware so it will fit inside? By doing Apple is able to come with superior products such Mac book air, ipad and iphone. The experience of using apple products surpasses customer’s expectations which maximize their satisfaction.

http://cdn.macworld.co.uk/cmsdata/news/3337239/macbookpro.jpg https://encrypted-tbn2.google.com/images?q=tbn:ANd9GcRZ68cYUxbZMYBtoxZlVhDBKRnwDtJLriCP9s8LsP1F4BdLMnDhFQ https://encrypted-tbn3.google.com/images?q=tbn:ANd9GcSQH87zAtZTeqdNcwqZ6g6NHiuRMF9OQS_dwM7cX-dDhDNU-uT1

Source (www.macworld.co.uk)

Providing stellar customer service. Apple puts their customers first their number one probity. This can be seen from their retail stores where they hide the wire, cash registers so as to create more space for their customer to focus on their products. Apple also let customers to play the products on display as long as they want and the customer decides to leave the staff smile and tell them to come back even if the customer did not purchase any thing.

New innovations. Apple launches a new product once every year. This ensures each product launch is though and polished to perfection leaving no room for defective products. This approach also increases consumer’s anticipation and keeps them eagerly waiting for the new product.

https://encrypted-tbn2.google.com/images?q=tbn:ANd9GcTCdzGImAiBBVThTUQDO1W48OXJRuaoM4Lcz8c4xrr4k_V3whH9

Source (www.macworld.co.uk)

Excellent after sale services. Apple offer excellent after sales services through their international one year warranty for all their products. Consumers experiencing manufacturing defects on apple on products on warranty can replace their products any apple retail store. Apple also offers an extended international warranty at fee to in order to satisfy and surpass consumer expectations.

Build a customer for life loyalty program. One to One is a membership program at the Apple Retail Store designed to help you get the most out of your computer. For $99 upon the purchase of a Mac, Apple customers can sign up for one year of personalized, face-to-face classes with an Apple trainer (creative’s) who can teach just about anything you want to learn to do: understand the operating system, edit photos and movies, create a presentation, etc.  There is no limit to the number of sessions you can take.( Carmine Gallo)

QUESTION 2

2.1. Review L’Oreal’s brand portfolio. What role have target marketing, smart acquisitions, and R&D played in growing those brands? (Source: Kotler & Keller, 2012, P. 619)

According to Kotler (2012), L’Oreal has evolved into the world’s largest beauty and cosmetic company. L’Oreal has distribute in 130 countries, 23 global brands and over €17.5 billion in sales. Hence, the achievement of the Company was credited to Sir Lindsay Owen-Jones. Sir Lindsay Owen-Jones has transformed L’Oreal from a small French industry to an international cosmetics phenomenon with strategic vision and precise brand management. (Kotler, 2012). The following below are L’Oreal target marketing, smart acquisitions, and R&D offers in growing those brands.

2.1.1 Target Marketing

The L’Oreal’s brand portfolio has mentioned that the CEO and Chariman Ownes-Jones has divested weak brands, invested heavily in product innovation, diverse brands, as well as expanding into markets no one had dreamed of, including China, South America, and the former Soviet Union. (Kotler, 2012). Furthermore, L’Oreal expects a huge portion of its growth in order to emerge markets of Asia and Latin America. (http://www.forbes.com). L’Oreal focuses on the Asian markets, as the Asian cosmetic market is the most dynamic. Hence, L’Oreal focuses on its 5 areas of expertise: skin care, hair care, makeup, hair coloring, and perfume; and its brands fall into 4 different groups: consumer products, luxury products, professional products, and active. Hence, L’Oreal has also consists 85 products around the world where from Redken hair care and Ralph Lauren perfumes to Helena Rubinstein cosmetic and Vichy skin care. By using this strategy, the French company has not only experienced the rapid growth but also become a strong brand, which staying on top in a powerfully competitive industry.(http://www.businessweek.com)Other than that, L’Oreal also segments its market based on psychographic. L’Oreal has segmented India into different group based on their thinking and behavior. In addition, the new generation who has implements a very westernized view on spending and culture. Nowadays, they are more willing to splurge on luxury goods, beauty, which were earlier consider too expensive.

L’Oreal ColorAppeal Star Secret Eyes Penelope.jpg

Figure 1 : Source (L’Oreal 2011)http://lovethis.wordpress.com

2.1.2 Smart Acquisitions

In addition, L’Oreal’s smart acquisitions strategy has given a lot in developing its brands. For example, L’Oreal instantly became a player (with 20 % market share) in the growing ethnic hair care industry when it purchased and merged the U.S. companies Soft Sheen Products in 1998 and Carson products in 2000 (Kotler & Keller, 2012). Other than that, SoftSheen- Carson now derives approximately 30% of its annual revenues from South Africa (Kotler & Keller, 2012).

2.1.3 R & D

Furthermore, L’Oreal’s R&D also contributes to the developing of its brands. Other than that, by understanding of the unique beauty routines and needs of different cultures, countries, and consumers is critical to L’Oreal’s global success (Kotler & Keller, 2012). For example, as mentioned on the L’Oreal Brand portfolio stated that L’Oreal has come up with a product, which called Wondercurl mascara in Japan. This product is specially formulated to curl Asian women’s eyelashes, which are usually short and straight; within three month it had become Japan’s top selling mascara. After that, L’Oreal also research the market and complete with R&D as well as marketing and advertising teams to develop nail polish, blush, and other cosmetics.

loreal-india-mbaknol.jpg

Figure 2 : source (L’Oreal 2012) www.L’Oreal.com

2.2. What’s next for L’Oreal on a global level? If you were CEO, how would you sustain the company’s global leadership?

If I were CEO of L’Oreal, I would focuses on foreign market. As the developing countries are the most attractive growing markets for almost all kinds of businesses. These countries has specific needs when it comes to beauty.Therefore, the development of foreign markets is necessary, one of the most important part of direct investment. The following below are the methods to sustain L’Oreal’s global leadership :

2.2.1 Indirect Exporting

Indirect exporting can be defined as selling goods to oversea market through intermediaries. On the other hand, this can also be defined as sell the product either directly to customers or to importing wholesalers. The company does not have to develop an export department. Hence, a company engages the services of an intermediary firm ability of finding foreign markets and buyers for its product. For example, the Haier Company is using the indirect exporting process as it cooperates with other company. Thus, Haier become representative to sell its consumer product to the oversea market. In addition, by utilize this method, Haier can still retain considerable control over the process and able to identify on its production and quality control.

2.2.2 Direct Exporting

The direct method can be defined as the most ambitious and hard, in which the company personally have to handle its own export process from market research and planning to foreign distribution and collections. Hence, large expenses might be devoted into exploring the global markets. For example, Samsung Company has provided sales additional of the company around the world. Other than that, the company also utilizes the local distributors and agents, so that the sales might as well as growth rapidly and company can sells their product more efficiency.

2.2.3 Joint Ventures

Joint ventures can be defined as a business entity where two or more parties agree to engage and contribute goods, services and or capital to a common commercial enterprise. Sometimes the joint ventures create partnership, a separate corporation, and limited liability company. Hence, there are also additional types of companies such as joint ventures limited by guarantee or with partners holding shares. For example, Starbucks coffee can be known as successful business for joint ventures. Starbucks coffee has operated many franchisees all over the world. However, Starbuck coffee will also provided those professional staffs and technical supports for stores which joint ventures. Other than that, it will maintain the same level of standard as well. These have made Starbucks coffee brand penetrates into the global market more rapidly.(http://sbinfocanada.about.com)

2.2.4 Direct Investment

Direct investment can be defined putting the money in a company operating or incorporated in another country. Direct investment is as the purchase of controlling interest in a company or at least enough interest to have enough impact to direct the organizations. Hence, it also refers to an investment made to obtain lasting interest in enterprises managing outside of the economy of the investor. According to the Kotler (2012), the ultimate form of foreign involvement is direct ownership: the foreign companies are able to buy part or full interest in a local company or build its own manufacturing or service facilities. If the market is is large enough, direct investment offers variety benefits such as increase competition, integration into global economy, technology advancement, and improved human resources. For example, Singapore has built a Universal Studio, which brings a lot entertainment for tourism and increased the economic in Singapore.

Conclusion

In conclusion, from the analysis above shows that Loreal’s is more suitable on Join Ventures because the product is selling in supermarket such as Tesco, Jusco and etc. The product is more suitable to show at complex such as body shampoo store, so customer allow to compare the advantages of Loreal’s compare with others. Loreal should do more effort and try in a international market.

Question 3

GEOGRAPHIC

In 1985 the world’s biggest home furnishings retail chain was entered the market and it all started with a limited success founded in Sweden. More expansion two years later whereby IKEA had to plan for more outlets from some compromises, especially from Europe to be adopted for the US market where some adjustment in services was made since American buyers hate standing in queue and love-next-day-delivery.

IKEA’s main objective was still maintained through predominantly eighty percentage of worldwide accepted product range with local slight adoptions. Continuously years later most of their local customers were introduced to other countries’ IKEA outlet international. Since the economies of scale were achieved, their main goal of the company therefore was preserved and those smaller adoptions were not being counted as defeat to their original approach. However the more they are approved to be acceptable to the county and states, in order to increase the critical mass of the potential customers, therefore the more they will be able to be observed as a departing further from the original IKEA concept.

Today, IKEA has established many stores in 36 countries all over the world, whereby Germany has the most locations with 43 stores among its cities, while United State of America is in the second row by 34.

DEMOGRAPHIC

(Age-Generation)

IKEA Tried to cover the whole population through mission to accomplish and they have been claimed that everyone can experience that they are part of IKEA’S target group, but researches has resulted as they do miss the older generation of people.

Even by referring to IKEA’S three life courses, the lack of support to older people can easily be observed. Even though these people are part of many of our lives but in Ikeas’ catalogues or commercial or models there is no sign of them and it’s mostly composed by young adults.

(Lifecycle)

IKEA has implemented a new strategy over people situation and lifecycle and its divided to three; “living alone”, “living together” and “living with children”. They have obviously targeted many people, so they assumed that everyone is could be inserted into a specific phase; and be referred to one of their three different life cycles although, these are not obviously portrayed and tangible in their stores’ showrooms.

(Gender)

Gender is a significant topic to acknowledge since, according to IKEA, their highest customers are women and this has been supported by the researched of Ikeas’ data. People from both living together and living with children have set that these two groups had the major impact on what was bought to the household. Accordingly, it is often the woman who is buying the furnish items to be a household.

(Income)

As IKEA mentions, they have proposed to many people low-priced furniture, They support and consider those people life who are not that well paid off, and have made them the chance to still afford to buy furniture in order to create a better everyday life; as such they should have the same abilities and opportunities just like people with a higher income.

Psychographic

(Personality – Lifestyle)

All customers express a craving for individuality. They all struggle and attempt to modify their interiors in order to match their own personality. IKEA products provided the impression of being very dissimilar liable on which situation it was implemented in. The most obvious divisor from our data is that we all have opinions and mentality regarding our style. We pick our home furnishing sensibly which much reflection to whom we are, to our own personality. As such, we attempt to be stylish, in any kind of sense we regard as stylish.

(Value – Attitude)

My home is my castle. The main element that there exists such a proverb in Sweden argue attitude, which stands for the home to be of significant importance. Home today drives beyond the need of accommodation and protection. In our modern society, home is a place somewhere we invite good friends, have nice dinner gatherings and socialize in. Therefore it is essential to have furniture that is significant and which characterize each member’s value.

Behavioral

The IKEA stores contain consumers need for their homes under one roof. Everything needed, IKEA has it. This was stated to be an important defining factor when selecting to go to IKEA. The main benefit with IKEA is their product range, to some level clear, benefits that customers receive form IKEA, is low priced products.

Diversity of products is everywhere in IKEA’s stores; reaching from napkins to kitchen supplies, and couches to bookshelves. Customers claim that they usually buy smaller stuffs when visiting IKEA; therefore they are End-users of IKEA’S smaller things.

As such, loyalty status to IKEA can be seen as a common believe among the customers who are informed of IKEA’S concept. Most of their customers are all very positive to IKEA as a concept, and considered themselves to be an IKEA customer, even if they differed in usage rate. Consequently, they could be categorized as loyal customers.

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