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Marketing is a buzz word which describes both a management strategy focusing on customer satisfaction, and a series of functions such as advertising, selling, product development, and market research. Marketing has been defined as: 'the management process responsible for identifying, anticipating and satisfying customer requirements profitably.' - UK Institute of Marketing. Marketing is managing profitable customer relationship by attracting new customers by promising superior value and keep on growing current customers by delivering satisfaction.
Main characteristics of marketing oriented organisation: Marketing oriented company is that company which keeps the customer at apex by satisfying there needs and demands. They are aimed to stay nearer to the customers and far ahead than their rivals. Usually, these companies are pro active to find out the needs and demands of the customer and they allocate their resources strategically to achieve the customer satisfaction.
These are the main features of marketing oriented organisation: There are four major characteristics of marketing oriented organisation. These are as follows:
A Shared values: Marketing oriented company always put the customer first and they share the common value of superior quality products to the customer.
B Organisational structure: Customer oriented marketing organisation is free from the bureaucratic red tape as compared with other organisation. They have flat type of organisational structure with very few layers which gives the clear cut vision to the customers.
C Strategy: Marketing strategies and programs are designed and guided by the overall company's strategy. There is significant role of marketing to meet the organisation's strategic objective and goal. These types of organisation have long term marketing strategy incorporating the future demands and needs vis-a-vis flexible and participative.
D stakeholder: These organisation exchanges the ideas and values from the stakeholders and it normally follows the participated decision making process freed from top down approach.
According to the features of marketing oriented company's; It can be said that London 2012 project is Marketing oriented organisation which has incorporated the core characteristics of these types of organisation i.e. shared values, organisational structures, strategy, stakeholder.
Explain the various elements of the marketing concept with reference to the Olympic marketing activities.
Various elements of marketing concepts: to analyse the various elements of marketing concepts we have to analyse the 5Cs and 4Ps of the marketing.
Company: what is the purpose, vision, mission of the company.
Customer: customer segment which company is opt to serve.
Collaborators: stake holders of the company i.e. investor, supplier, local community, subsidiary companies.
Competitors: major competitors of the company, their market position, strength.
Context: present and future prospects of the organisation which should evaluate the internal and external factors that may influence the business of the organisation.
4Ps of marketing are:
Product: the types of product we are selling, what are the need of the customers the product is going to fulfil.
Promotion: how are we going to intend our product and by which medium like newspaper, advert, TV etc.
Price: at what price we should sell the product and and we should know that what are the price for the same product are there in the market as well.
Place: which should be the target place to sell the product like in the supermarkets, concept stores, and small mom-and-pop store?
Identify and critically assess the benefits and costs of marketing approach for London 2012.
There are different benefits of marketing approach for London 2012. For the Olympic plan there are different things which is build and which is nearly build in the different parts of London. The things like stadium and many other things can also be used after the Olympic by many others clubs and it will be result oriented and profit oriented business as well and the east London will be going to be the tourist destination also for the 2012 Olympic an it will be the plus point for the development of the east London in UK. It helps to build the satisfaction to the customer by providing quality service. Customer care and service are the part of benefits of marketing approach. It helps to form long-term relationship and it also manage regular customer contacts and also create creates spirit of trust. There are also some improvements made by the government in the field of transportation in the London. After the finishing of the Olympic the all things will be used for another profitable work like the stadium can be used by many clubs and it will generate profit and the transportation facilities will also give profit and there are many things build in the London like orbit tower and many other things and it all will be the tourist destination and from this there will be profit for the government and also be beneficial for the organisation which is involved in it.
A) Identify and explain macro and micro environmental factors which influence marketing decisions of London 2012.
The macro and micro environmental factors which influence marketing decisions of London 2012 are as follows with explanation:
Micro environmental factors: These are internal factors nearest to the company that have a direct impact on the organisations policies and plans. These factors includes:
Customers: Organisations survive on the basis of meeting the needs,Â wants and providing benefits for their customers. If the company can't provide or cant meets the needs and wants of the customers than it is known as the failure company.
Employees: Giving job to the correct and intelligent staff and keep on motivating staffs is essential part of the strategic planning process of an organisation. The employees should be generous and farsighted as well.
Suppliers: increase in raw materials price will have a knock on effect on the marketing mix strategy of an organisation. The relation with the suppliers should be close and good in order to take more benefits and for the good result of the product.
Shareholders: an organisation required greater inward investment for growth they face increasing pressure to move from private ownership to public. Â Satisfying shareholder needs may result in a change in tactics employed by an organisation.
Media: media can change mass difference in the betterment and development of the organisation like giving advert in TV, radio and hooding board etc.
Competitors: the name of the game in marketing is differentiation. There should be more benefits than the compare to the competitors this is the rule of business as well. Â Competitor analysis and monitoring is crucial if an organisation is to maintain its position within the market.
Macro environmental factors: the macro environmental factors are as follows with an explanation:
Political: Political condition of UK is quiet stable despite of having the hung parliament. Conservative is on the lead and there are few measures taken by teh government to bring back the country in economic growth.
Economic: Due to the resection and credit crunch economic growth is slow and it has negative impacts on job creation, service industry and there is uncertainty about the future economic condition of UK.
Social: UK is highly diversified with multicultural, multilingual people from all across the globe. Government has ensured the social life of children and elderly people.
Technological: UK is one of the leader in the world for technical innovation and advancement in every sector so technical factor is incredible for business development and growth.
B) With your understanding of the topic on Segmentation, propose segmentation criteria that the organisation can use for two products in different markets.
Segmentation is essentially the identification of subsets of buyers within a market that shares similar needs and demonstrate similar buyer behaviour. The word is made up of billions of buyers with their own sets of needs and behaviour. Segmentation aims to match groups of purchase with the same set of needs and behaviour. Such a group is known as segment. Segmentation is a form of critical evaluation rather than a prescribed process or system, and hence no two markets are defined and segmented in the same way.
C) Sketch out those factors that influence the choice of targeting strategy by the organisation with reference to the financial capability of sponsors
Targeting strategy: The selection of potential customers to whom a business wishes to sell products or services is targeting strategy. The targeting strategy involves the segmenting market, choosing which segments of the market are appropriate, and determining the product that will be offered in each segment. A business offering multiple product can determine if the various segments should receive one generic product (such as in mass marketing), or if each segment should receive a customize product (multi-segment), based upon the market's diversity, maturity, the level of competition and the volume of sales expected.
The financial capability of sponsor is one of the important factors in any business. If the sponsor cannot invest any amount in the new business or in the running business then it will be difficult for any business to be sustained in the competitive market. Financial capability of sponsor should be strong and they should have the ability to spend money when there is need of money in the related field and if they can't invest the money in the related field when needed than it will be no use f seeking the target market and there is no use of targeting strategy in business and in any organization which is based on profit generating motto. For example:- If the coca cola company did research and it is going to open its branch in new place and obviously it needs sponsor and at that time if the sponsor can't give money than it will effect its production and plan for achieving more profit. Every organisation have only one view that is earning more profit and giving good service to consumers and in this factor sponsor and good target place plays an vital role. The organisation makes its target strategy to achieve more profit in the business and their thinking is also positive because the rule of business is to achieve more profit and in this context the capability of sponsor is also very important because sponsors are the back bone of every business. So there should be good choice of targeting strategy and good sponsorship.
D)How does buyers behaviour affects marketing activities in two different buying situations putting into consideration Olympic branding of products by official sponsors?
Consumer's behaviour refers to the selection, purchase and consumption of goods and service for the satisfaction of their needs and wants. There is different process involved in the consumer behaviour. Initially the consumer's tries to find what commodities he would like to consume, then he selects only those commodities that promise greater utility. After selecting the commodities, the consumers makes estimate of money which he can spend. Lastly the consumes makes the decision to buy the thing in reasonable price. This is the buying behaviour of every consumer. There are some factors that affect the buyer behaviour such as:-
Cultural factor: Consumer behaviour is deeply influenced by the cultural factors such as: culture, subculture, social class.
Social factor: In social factor it contains reference group, family, roles and status.
Personal factors: It contains age, economical status, occupation, lifestyle, personality.
Psychological factor: There are four major psychological factors i.e. motivation, perception, beliefs and attitudes and learning.
These are the factors that affect the buyer behaviour in marketing activities in two different buying situations. Putting into consideration Olympic branding of products by official sponsor there are also the same factors that affects the buying behaviour of the consumers because there are many consumers in Olympic and they all are of different culture, they have different social things like status, roles, groups and personal factors like some are rich some are lower of standard and their occupation affects their budget which they can spend.
A) Describe how products are developed at a global sporting event such as Olympic to sustain competitive advantage for registered official sponsor against companies unofficially associating themselves with the games
Product: Product is the thing which is based on profit generating thing and which satisfy the wants and needs of the consumers to the peek. Consumers consume product to satisfy their wants and needs and in simple way the thing which satisfy the needs and wants of the consumer and can generate maximum profit is known as product. The products are developed in the following way:
Idea generation: New product development starts with idea generation. A company has to think new ideas to sell product and to sustain their product in the competitive market. It has two sub points it is listed below:
Internal ideas: It can pick the brains of the executives, scientists, engineers, manufacturing staff and sales people.
External ideas: Good new product ideas also come from customers. The company can analyze customers question and complains to find new products that better solve consumer's problems or company engineers or salespeople can meet with and work alongside customers to get suggestions and ideas.
Idea screening: The purpose of idea generating is to create a large number of ideas. There are many ideas from many sources and its main motive is to select best of the best ideas from all ideas to generate more profit and for the smooth running of the organisation. Product development costs rise greatly in later stages, so the company wants to go ahead only with the product ideas that will turn into profitable products.
Concept development and testing: In product concept good-looking ideas must be developed. It's important to differentiate between a product idea, a product concept and a product image. A product image is the way consumers perceive an actual or latent product. Little definition of concept development and concept testing is listed below in brief:
Concept development: Concept development is known as in this the concept of products and the concept of place and about budgets and what kind of product that the consumers is demanding and at what price it should be published all should be there in the concept development.
Concept testing: It calls for the testing of the new products concept in the market and with the group of target consumers. The concepts may be presented to consumers symbolically or physically.
Marketing: After passing the product concept, tests the next step is test marketing. It is the stage at which product and marketing programme are introduced into more practical marketing setting. It's like more hard and tough challenge to promote their product in peek and to search the accurate field for the product which is going to lunch in the competitive market.
Commercialization: Test marketing gives management the information needed to make final decisions about whether to launch the new product. If the company goes ahead with commercialization introducing the new product into the market and it will face high cost. It's the final touch that the new product is good and can sustain in the competitive market or not for the long time and if it can than that product will be launched.
B) With reference to question a, how can distribution network of the companies be organised to provide customer convenience for the event.
Distribution management: Overseeing the movements of goods from supplier or manufacturer to point of sale. It is the term which includes packaging, inventory, supply chain and logistics. In the distribution management it includes that how to distribute the produced goods and where to produce the goods and by which medium. There are two mediums i.e. wholesale market and retail market.
Wholesale market: In this kind of market the manufacturer direct sell the goods to the buyers and it's for the huge mass and in this the cost is also flexible and low. This is called wholesale market. In this kind of marketing the goods are sold in a large quantity and when buying the lot of goods at the same time the cost is also flexible and it will be easy for the consumer to buy at the low price for the huge product or large quantity of product.
Retail market: In retail market first the manufacturer sells goods to the wholesaler at the huge mass at the lower price and after that the goods is sold to the retailer in the small amount and then the retailer sold the goods to the final consumer according to the needs of the consumer in the high price. In this the price will also be high and the quantity of goods purchase will also be low.
C) How are prices set to reflect an organisation's objectives and marketing conditions?
Pricing determination comprises the selection of pricing objectives, choice of pricing strategy. Prices are set to achieve the high goal and to sustain in the market for the long term. Pricing is done to increase the sells of any product in the market. There are some objectives of pricing that is listed below:
Achieve a target level of profit
Achieve a target rate of return
Maximize sales revenue
Improve cash flow
Maintain market share
Build a brand
D) Show an illustration of how the organisation (London 2012) integrates its promotional activities to achieve its marketing objectives.
London 2012 organisation is integrating local community, school, colleges and business organisation to boost its campaign of Olympic 2012. Its working under Olympic and Paralympics game committee. Particularly, it is promoting its activities under following campaign.
Local school and college involvement: Committee is involving local schools and colleges to promote the games by launching promotional game programs in schools and colleges.
Branding: They are utilising the UKs leading business organisation like BP, Lloyds, and other organisation to promote the games.
Volunteer: They are recruiting more than 100s of thousands of volunteer to make the game happen.
Business promotion: They are making mascots, brand T-shirts and other promotional input for the business promotion which in turn promotes the marketing activities of the organisation.
Critically analyze the sponsoring organization's additional elements of the extended marketing mix in comparative terms with that of its competitors for the event.
Marketing mix stimulates the sales of other non performing products due the brand value of highest selling products which inculcates the company image. In the case of London 2012 organisation it's using the different business organisations as its partners. From the bank and building society i.e. Lloyds, from Communication i.e. BT, from card services i.e. Visa to promote its events which in turn accelerates its promotion and overall business from the London 2012. So, its quite unique approach in marketing mix to choose the sponsoring partners of the game from leading and reputed business organisation of the host country i.e. United Kingdom (Wells 2010).
A) Attempt a suggestion of marketing mixes for two dissimilar segments in consumer markets.
Any organisation which is offering products in consumer markets should focus on most profitable market segment as a specialised market entry. Once company gets the success in its particular segment it can extend its marketing mix for other dissimilar segments of the market. For example, a new brand in soft drink "Nix Cola" can be launched in specific consumer market like 99p or pound land as a established retailer. Once it gets success then it can be launch in different segments and restaurant and coffee shop. It would benefit the organisation from huge marketing costs and will enhance its brand penetration in the market.
B) Are there are any differences in marketing products and services to organisations rather than consumers? If yes, explain and if no, why?
It is obvious that there is significant difference in marketing products and services to organisations than to the consumers. It can be explained as follows:
Marketing products and services to organisations consists of different stakeholder groups and networks, both internally and externally e.g. owners, managers and employers but in consumer marketing it deals with the end users that is consumers.
Marketing to organisations can apply to different types of small to medium sized enterprises including governmental organisations unlike the marketing for consumers.
C) Critically explain how and why international marketing differs from domestic marketing with reference to London 2012.
International marketing involves the satisfying the needs and demands of the global customers. Organisations should consider the values, customs, languages and currencies before doing the international marketing. For example advertising in Nepal and China should use in local languages. The potential market size, degree and type of competition, price, promotional differences, product differences as well as barriers to trade have to be analysed alongside the cost-effectiveness of various types of transport. But for the domestic marketing; organisation should consider for the local factors and local needs and demands of the buyer. So, in the case of London 2012 as well company should consider the domestic and international marketing factors. People from all across the globe are keeping eyes on London so it should position its marketing strategy for international market and domestic market separately.