Micro And Macro Environmental Factors Marketing Essay

Marketing has often been defined in terms of satisfying customers’ needs and wants. Critics however maintain that marketing goes beyond that and creates needs and wants that did not exist before, According to these critics, marketers encourage consumers to spend more money than they should on goods and services they really do not need.

Aim

To prepare a report for the Management of Aldi supermarket on its marketing policy and to propose a new position for its fresh fruits and vegetables. In relation to the above scenario.

Terms of reference.

To prepare this report the author r has considered the various marketing process, evaluated the benefits and cost of marketing orientation, evaluated the macro and micro factors that influence marketing decision masking he author has also considered different market segmentation for different products of .Aldi. The author considered market targeting strategy for the organisation fresh fruits and vegetables . and evaluated buying behaviour of people for the range these products. The author has and recommended a new market position for this product.

Introduction

The first foundation stone was laid in 1913 with the opening of a small food store in the German town of Essen. During the ’40s, an expansion program was created and more ALDI stores were opened. In 1954, a celebration was held for the opening of the 50th store in Germany.

By 1960 ALDI had grown to a network of over 300 stores between the Ruhr Valley and Aachen. The prosperous family business was then divided into two independent companies: ALDI Süd – to service the South, and ALDI Nord – for the North.

‘Self-service’ was still a relatively new retail structure in the ’60s and ALDI became the first company in Germany to adopt this new retail concept. While customers were still able to take advantage of the same high quality products as before, they could now purchase them at much more competitive prices.

In 1983, ALDI Süd started chilled distribution depots and sold fresh products such as cheese, yoghurt and sausages. Frozen products came in 1998 and were closely followed by fresh meat. ALDI, to this day, continues to keep up with the ever-evolving taste of the modern consumer.

Today, Aldi 7,000 stores and serves millions of people across three continents. (Aldi.com.au)

4. Marketing process

MARKETING PROCESS

The marketing process is the process of analyzing market opportunities, selecting target markets, developing the marketing mix, and managing the marketing effort. Target customers stand at the center of the marketing process. There are following steps in Marketing Process:

A. Analyzing marketing opportunities

B. Selecting target markets

C. Developing the marketing Mix

D. Managing the marketing effort

A . Analysing marketing opportunities

This involves carrying out market research to find out the opportunities, the threat and the organisation strength and weakness. Hence the need for a reliable market research approach. With market research the organisation will find out about market constrains, it will find out it competitors about demand for the product it will also be able to profile the age group, of likely consumers of the firms product.the company finds about legislation and other environmental factors that re likely to affect the profitability of the company.

With useful information rom the market research the organisation will know customers requirement and able to plan for it.

B. Selecting the target Market

Todays market is very competitive and to be a viable organisation the organisation as to be customer focused. It is import to analyse and profile consumer. Each company has to segment the market and concentrate on the market where it believe it has the edge over others (Target Market).

C. Market segmentation

This is dividing the market into separate groups by consumers and their needs traits, behaviour. Target marketing is the evaluation of each market segment and selecting one or more segment where the company can generate more customer value and sustain it over a period of time.

D. Market positioning

The company need to identify how its products be placed in a distinctive and desirable position to other competing products in the. To define a market position the organisation has to identify possible competitive advantage. The company will need to develop a marketing strategy that will support the market positioning of the product. This will provide consumer with more than those offered by competitors.

c. Developing the Marketing Mix

Having develop its market positioning and competitive strategy the it will have to decide what its marketing mix will consist of

The marketing mix is the set of controllable marketing variables that the firm blends to produce the response it wants in the target market. The marketing mix consists of everything that the firm can do to influence the demand for its product. These variables are often referred to as the “four Ps.” . Product, Place, Promotion and price.

d. Managing the Marketing Effort

To manage the marketing the firm will need to carry out four marketing functions of analysing, planning, implementation, and control

Marketing orientation

Marketing Orientation is defined as as “a corporate state of mind that insists on the integration and coordination of all the marketing functions which, in turn, are melded with all other corporate functions, for the basic purpose of producing maximum long-range corporate profits.” (business.highbeam.com)

The characteristics of market orientation are inter-functional coordination,customer orientation, understanding customers and organisational culture.

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The benefits and cost of marketing orientation

Benefits of marketing orientation

Growth in profitability

Improved corporate image

High customer satisfaction, loyalty and retention

Increase sales and market share

Enhanced competitive advantage

Cost of marketing orientation

Technology requirement for customer contact and improved ways of doing business

Complex customer growing needs and power

Increasing customer expectations

Staff training and development needs

Increase resource demand to providing customer specific marketing

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6 . Micro and Macro environmental factors that affect marketing

6.1 Micro Environmental factors

These are factors within the control of the organisation and their implied actions can affect the organisation. There are six main factors that can be classified as micro environmental factors

Marketing channel: This includes the distribution channel, the outlets, sales representatives and market research companies.

The consumer, producer,reseller, government, and international markets.

Organisation’s internal environment these includes management, Employees and Directors and franchisee.

The competitors

Publics: These are group of people or body that have interest in the organisation that have an actual or potential interest in or impact on the organization’s ability to achieve its objectives:financial, media, government, citizen action, and local, general,

Financial intermediaries: This includes the external auditors, the banks and credit rating agencies.

Whatever actions taking by the people will be as a result of the organisation activities and practice. Hence the conclusion that the organisation invariably has control over them..

Macro Environmental Factors

This are external factors outside the control of the organisation and ability to envisage them allows the company to be prepared and adopt strategies to overcome them.

Demographic Environment

This is to do with the population of a particular location and the following understated factors are are likely to affect its outcome which invariably will affect the planing of of the organisation

Population Growth

Where there is a population explosion or high population the organisation is likely to do well and increase profitability through increased sales. Also migration will have an equal effect

Population Mix

The population mix will have effect on the types of goods that will be demanded for example in China there will be more pensioners and old age in the next few years and the working population may not be able to sustain the pensioners. Furthermore the demand for adult drapers in such market will increase whilst that of children will greatly reduce.

Household pattern

The household consumption pattern will also change where there are no babies in the house the parents will not buy baby food or medication.

Geographical Shift

The emigration or immigration will affect the population of a location and management needs to take this into account when deciding and planing the marketing strategy for example there is migration to the UK and emigration fn Republic of Ireland and this will affect consumption pattern

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Economic Environment

The economy of a country or the economic prospect will affect the consumption pattern in that country for example the Euro zone are going through and economic depression. Each family are concerned about how they spend their dis[posable income. The same applies in UK and it reflects on people’s shopping habit less people go to shop in Waitrose and more people are turning to Aldi.

Social cultural Environment

This will equally affect the decision of management for example it will impossible to sell non halal food in a predominantly Islamic country and also with we not make economic decision not to sell alcohol in the Republic of Ireland.

Natural Environment

Where there resources like raw materials and reduced labour cost it will make economic sense to locate there also where is natural disaster the firm can plan suitable good s for that region.

Technology Environment

The advent of I pads, smart phones. online shopping has changed shopping habits and also advertising patterns significantly the next generation of technology is on its way. Corporations to be conversant with changing technology so as plan ahead.

Political and Legal Environment

Governments continue to change all over the world, different governments come up with different policies and laws. Some may be to the advantage of the company some may be threat and some may be opportunities.

In conclusion The micro and macro factors are used for SWOT analysis in analysis in an organisation.

Buying Behaviour

Stages of the Consumer Buying Process

Problem or need recognition

Information search

Evaluation options

Purchase Decision

Post Purchase

Positioning of fresh Fruits and Vegetables at Aldi

.Product positioning is the ability of a firm to come with unique product and customer perception of brilliance and likable product.

Product s positioning are based class attitudes, benefits,quality and are target at a particular people known as the market segment..( Berry T.and Wilson D , 2000)

The target market for fresh fruits and vegetables in Aldi should be children to reduce obesity in the country, to increase healthy awareness and promote healthy eating.

Conclusion

Marketers go out of their way to find and develop a Niche market and product and tto look for ways on enticing consumers and be a profitable organisation to this end they carry out market research. analyse the market and come up a with valuable product that will be demanded. The also create awareness through different campaign strategy, they spend considerable amount of money to ensure the product is attractive,the packing is attractive and they promote the usefulness of the product

Recommendation

.Product positioning involves creating a unique, consistent, and recognized customer perception about a firm’s offering and image. A product or service may be positioned on the basis of an attitude or benefit, use or application, user, class, price, or level of quality. It targets a product for specific market segments and product needs at specific

prices.

Referencing

http://www.aldi.com.au/au/html/company/3777.htm

http://www.zainbooks.com/books/marketing/principles-of-marketing_10_marketing-process.html

http://business.highbeam.com/138375/article-1G1-8366780/market-orientation-construct-research-propositions

http://www.ukessays.co/essays/marketing/marketing-report-of-tesco.php#ixzz2NAfKDrTg

ON TARGET: THE BOOK ONMARKETING PLANS How to develop and implement a successful marketing plan. By:Tim Berry and Doug Wilson Palo Alto Software, Inc., First Edition, October, 2000