The Role Of Marketing In Business Marketing Essay

Normally, the term marketing refers to the profitable relationship with the customers. Many people think that, marketing means selling and advertising. But, this is not appropriate. Because, marketing function is a major task to run the business in future. Broadly, marketing is defined as the managerial tasks which include the business to create value in order to build profitable relationship with the customers through the exchange of values (Kotler & Armstrong, 2007). Experts expressed that, the marketing process includes the activities to create value with customers and build strong customer relationship in order to add values.

1.1 Morrison’s Vision and Business Objectives

The markets are becoming boom as the business organisations lifting them from the recession. However, the UK business organisation has shown resiliency as the market was under the recession. But, few business organisations have contributed to shift from the recession through the efficient marketing strategy and the effective business tasks (Kotler et al., 2010). In a particular way, the Morrison is one of them who strategically handled the recession. The vision of Morrison is designed as “Food Specialist for everyone”. Here, the “food specialist” means Morrison really understand food, where comes from, packaging, making the product by Morrison store. Whereas the “for everyone” means the foods’ great value, special for people. So, the business objective is to make profit to ensure growth and survival of the company.

1.2 Analysis of external Factors impact on Marketing of Morrison

The external factors of marketing are considered as the political, economic, social, technological, environmental, and legal. But, many marketing experts has expressed that, the marketing activities is influenced by the another five factors, which is considered as the Porter’s five factors analysis. Moreover, every factors of PESTEL and Porter’s five forces analysis can be considered as the external impact on the marketing activities (Lages rt sl., 2011). Here, the porter’s five forces analysis is described as follows in line with the PESTEL analysis.

Porter’s five forces

Porters five forces

Analysis

Threat of substitute product

Substitutes will affect the groceries.

Smaller super shop chain can affect the market share of the Morrison.

The threat is considered as the high level.

Threats of new entrance

The new competitors will gather the diversified product feature.

The new entrance will have lower economic scale to compete with the existing market.

The threat is considered as the low level threat.

The new entrance may influence by the product differentiation tool.

The distribution system of new entrants will not be strong as Morrison

Bargaining power of customers

The quality of the product considering the taste, durability will have great impact.

The brand identity in the food market depends in the strategic situation.

Now customers are more deliberated as they have huge area of choice.

The competitors provide low switching cost

This is considered as the high level of threat.

The customers become more deliberate in the current market

Bargaining power of supplier

The supplier search for low cost.

Suppliers are rare in the market.

Supplier become more deliberate to supply the product

This considered as the medium level of threat.

Suppliers association may influenced by the competitors.

Rivalry

Huge competitors which has direct competition with Morrison

The fixed cost of the production is increased.

The price reduction is almost impossible regarding competitors

The competition is intense as the huge competitors with Morrisons

Here the PESTEL of the marketing activities has also similar impact in the market, which need to identify (Kohli & Jaworski, 1990). The PESTEL analysis is analysed in the following table.

PESTEL

Analysis

Political

The employment legislation has the great impact on the organisation.

The government inspires retail shop to offer a mix job.

The taxation policy is always considered as the unpredictable.

The political union of employees has great influence on the rules and obligation of the organisation

Economic

Inflation has common impact on the business.

The fluctuation of exchange rate has substantial impact on the long run of the business.

The migration trend of the population is affecting the business organisation.

The employment rate is changed due to the inflation.

Social

The lifestyle is completely depends on the standard of living and food habit.

The different culture of the different countries has influence on the Morrison.

The category of the people is highly depended on the different category

Technological

The wireless device has made the market more competitive.

Internet has become available and provides information.

The internet security is completely controlled by the government of UK.

Legal

The government rules and regulation to the business organisation.

Securities and Exchange Commission act to the business organisation.

Government can implement legal ordinance.

Environmental

Corporate social responsibility is becoming more popular.

The CSR acts must be obeyed by the business organisation.

Reduction of wastage is completely depends on the business environment.

1.3 How Marketing is used to Achieve Business Objectives

The purpose of the business organisation is to achieve the profit, growth and survival. These are common goals of every business organisation. But, the major function of business to create the market demand and achieve market share by the influence of the marketing activities. However, as discussed earlier marketing activities provides profitable relationship with the customers which bring the competitive advantage to the business. As the marketing activities provides the platform for the producer and the customers. In fact, the marketing provides information to the customer about the features and benefits of the product and service (Ahmed et al., 2010). For that reason, the marketing has the great influence to achieve the marketing objectives of the business. Finally, it can be said that, marketing has huge impact to achieve the business objectives.

1.4 The Elements of Marketing Process

The marketing activities in Morrison have systematic way to implement the marketing strategy in the competitive nature of the market. Normally, Morrison try to focus on the marketing research as a major task to set long run strategy. Specially, Morrison included its marketing activities from the different background of the market elements which are marketing research, market segmentation, market positioning, and market targeting, and developing the relationship with the specific market target. On the other hand, Morrison develops the marketing research to find out the specific reasons. However, the core element of the marketing elements is the marketing mix which included 4Ps and these are Product, Price, Place, and Promotion. But, there is added by the different marketing scholars 3Ps which represent the People, Physical Evidece, and Process.

2. The Role of Marketing in Morrison

2.1 Market Positioning of Morrison

In the competitive nature of the business field the commercially successful organisation need to provide return on investment. The marketing activities help to increase the sales to increase the return. In that case, the market positioning of the Morrison has focused on the customer convenience, affordability and the online buying strategy. Through focusing on the convenience, affordability and online shopping the company can easily entered into the market which drives to become the top 4th superstore chain in the UK (Audia & Greve, 2006). On the hand, the competitors like TESCO, ASDA, Sainsbury has also developed the positioning strategy. For example, Asda focused on the hypermarket to gain more market share. But, Morrison focused on the strong web application, familiar marketing drive, contracting the efficient distribution network, and consumption of the power of marketing.

http://sinergikonsultanmanajemen.files.wordpress.com/2011/06/marketing_process_o1.jpg

Figure: Elements of Marketing Process Source: Kotler, P. & Armstrong, G., (2007).

2.2 Market Segmentation and Market Target of Morrison

Market segmentation provides the information of probable or potential buyers in which the company can make proposal or motivation to buy the products. On the other hand, the segmentation provides the specific market in where the company and the customer can interchange information. However, the market segmentation states that the people who response as similar way considering the marketing efforts (James & Hill, 2012). Accordingly, Morrison provides the product and services to the customer with a range of variables which mentioned that the demographical segmentation. Morrison seems to provide the best alternative in consideration of age, sex, economic grade, marital status, nationality. On the other hand, Morrison determined the market target considering the middleclass people who have the normal buying behaviour.

2.3 Benefits of Market Segmentation to Morrison

Every company try to bring the major market share to the organisation. But, the truth is no one tries to catch the whole market as well as the least market share. Market segmentation has the specific reason to divide the market into different part (Katsikeas et al., 2000). Morrison specified that, the company needs the larger market share to provide the best services and targets. The monetary and the strategic action of the Morrison brought huge market share to the organisation in where the organisation enjoys huge benefits considering the lower cost of marketing, effectiveness of marketing, customer satisfaction, and influence on target market.

2.4 Distribution Strategies of Morrison

Strong distribution channel has the huge influence to achieve the marketing activities which influence the sales volume of the Morrison. Moreover, Morrison uses the owned distribution channel to provide the products into the retail store in order to provide the product to the ultimate buyer or customer or user. However, the distribution strategy of Morrison is smooth. In addition, Morrison provides the manufacturing plant to the distribution centre to reduce the time of shifting. However, Morrison thinks the transportation fleet in the distribution channel to identify the strategic action of the supermarket. Moreover, the transportation has the influence of the supply chain management to its organisational activities.

http://www.imgcorp.dk/cei/wp-content/uploads/supply-chain-management-articles.gif

Figure: Supply Chain of Morrison, Source: (Morrison Website, 2013)

2.5 Morrison’s pricing Strategy

Simply, the price is the ultimate sacrifice of the customers. Although different factors influence in the market to increase and decrease of the pricing strategy, the organisation try to capture the price control (Morrison Website, 2013). In addition, the supermarket chain Morrison focused on the different pricing technique to achieve the ultimate goal of the product. However, different pricing technique has different pricing reason to Morrison. The following table shows the pricing.

Pricing

Products and Reason

Product bundle pricing

Higher priced product

The product has lower demand in the market.

New Products

Promotional pricing

The competitive market needs promotional pricing.

Fast Moving Consumer Goods

Economy pricing

Higher demand in the market

All products

Psychological pricing

example like £0.99

3. Marketing Plan

3.1 Objective of Marketing Plan

This marketing plan has definite aims and objectives of the Morrison which will provided on the basis of the different activities in the market based on the future target of the business (Doyle, 2008). So, this marketing plan has three objectives which are completely depends on the marketing strategy of the organisation and these are as follows.

Online marketing adaption

Market share increase

Dividing the market into different fields

3.2 Current Market Structure and Current Market Situation

Basically, the UK retail sector is highly competitive due to the strategic marketing strategy and the competitive service with the special feature and benefits of the consumer. Now, Morrison is operating the business through the utilisation of the 403 outlets in the different place of the United Kingdom. But, the competitors also have the huge number of the outlets in the market and the competitors are Tesco, Asda, Sainsbury. Now, the Tesco is the largest super shop chain in the UK and Morrison is the fourth largest super shop chain. To meet the customer demand and satisfaction, the company need to provide survey to the customers.

3.3 SWOT analysis

In the competitive nature of the business, the Morrison needs to know what the strengths of Morrison are, what weaknesses of the Morrison are, What are the opportunities of Morrison, and what are the Threat for the Morrison. The SWOT ( Strengths, Weaknesses, Opportunities, and Threat) analysis has the definite influence to the overall factors of marketing. The following table shows the SWOT analysis.

SWOT

Analysis

Strengths

UK’s top fourth largest supermarket chain.

Branded product and owned labelled product selling.

Focused on the market street process

Technology implementation in every works.

Expertise in food

Own supply chain management

Quick order and delivery

Weaknesses

Lack of trustworthiness of customers

Less number of stores comparing the competitors

Less advertisement to promote product

High pricing

Higher reliance on the UK market

Opportunities

Have intentions to move different market.

The number of people migrated in the UK.

Morrison intends to enter into non food item

The marketing completely based on online and internet

Threat

The threat of takeover by the merger of the Morrison

The market is higher competitive.

The regulation and rules of the government.

Recession.

Open market economy

Morrison stands to provide best fresh food items to the customer through the most convenient, affordable way. Morrison stands for the ‘food specialist for everyone’. The above SWOT analysis of the Morrison has proved that, the organisation has the enough capability to compete in the market with the new marketing strategy to capture the major portion of the market share.

3.4 Market Segmentation

As discussed earlier in the paper, Morrison will look onto the market segment which will divide the market in different category (Kotler, & Armstrong, 2007). For that reason, the consideration of the need, wants, demand will completely support when the market segmentation will meet. In this position, the company need to divide into different category like geography, demography, psychograph, and behavioural. Here the market will be segmented into the demographic way as the UK has the multicultural country.

3.5 Market Positioning

The market positioning depends on the value proposition that a company offers to the targeted customers. Therefore, Morrison will focus o the value proposition to achieve the products position in the market (Kotler et al.,2010). Moreover, Morrison believes that, the products are produced in factory but brands are produced in mind. Already, Morrison has developed the positioning with the great effort which will influence to acquire new brand name and promotion.

3.6 Marketing Research

The market research brings the information from the customer to the organisation. Basically, the market research is done to achieve the marketing objectives. For that reason, the marketing strategy of the Morrison is connected with the market research and the market is highly influenced by the customer (Kotler, & Armstrong, 2007). To increase the customer satisfaction the research is done through the research specification. However, the research will have definite reason to make the survey, feedback from customers, market tests, and focus group.

3.7 Implementation

The implementation of the marketing activities depends on the marketing mix. As the marketing mix is discussed earlier, the 7Ps are included in the marketing mix. However, to implement the marketing process the company need to consider as follows;

Marketing Mix

Analysis

Product

Responds with the sales

Conduct marketing research

Developing detail specification

Developing new line product

Price

Need to allocate effectively

Allocation of money to every activities

Place

Effective and efficient distribution

Deciding the location

Improving warehouse

Promotion

Promote the new line products

Recalling the old products

Advertising campaign

Communication with the customers

People

Create solid ad efficient range of physical evidence

Assess staff’s skill

Assess performance of employees

Physical Evidence

Creating efficient level of physical evidence

Designing direct mail and online activities

Process

Increase the process to identify the new product attribute

Improving the production process

Evaluation of process

3.8 Budget and Control

The budget of this estimated marketing plan is £2000000 for one year and the marketing objective is completely achieved by the activities of the Morrison marketing process. The market has huge variables to control; otherwise the marketing activities will influence bad impact on the marketing activities. The budget is shown in the following figure with specific allocation of the budget.

Figure: Marketing Budget Source: (Morrison Website, 2013)