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The Various Elements And Process Of Marketing

5132 words (21 pages) Essay in Marketing

09/05/17 Marketing Reference this

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Marketing managers should be responsible for marketing. They have to be answerable for market advertising, public relations, research, sales and client service. Customer needs have to be met, because they can not come back, if they remain unsatisfied. Once all this has been achieved the company should achieve a profit.

Marketing definition by Kotler: “Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.” Consumers will exchange what they value (money), only if their need is being met.

Marketing definition by Tailor: “Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer.” [1]

People buy benefits, not product or services. Costumer needs are always changing; a company should adapt and change with their customers, by updating products or services.

Definition of Customer needs: “Problems that customers intend to solve with the purchase of a good or service.” [2] Definition of Customer wants: “Wants are a step ahead of needs and are largely dependent on the needs of humans themselves. [3]

Consumer is the most important person on which the business can lessen or grows. Customer needs clothes, food, make-up etc., and wants a good quality of product, easy using staff and unique. A good market will tell to customers what they really need and want. If the customer not exist marketing will not bear, marketing need to know what a customer likes, his tastes, his needs they need to drag customer and to be friendly with them. Consumer value is characterized as the difference between what a customer brings from a gain, and what she or he has to give in order to get that product. It helps companies and people unlock their familiar creative power and accomplish amazing results. Relative performance identifies how the service or product allows customer value relative to what competitors give. It is very important that a consumer to be amuse, that amusement will make him a buyer, a client for long time, if is not “satisfy” means losing profit.

To captivate consumers a product has a far greater chance of being a success if it amuses consumers’ needs. Businesses which make satisfying their customers a main concern are more likely to be effective at marketing. Marketing should affect all aspects of a business. A production department, for example, would not continue making a product that did not satisfy the needs of the consumers at whom it was aimed. To anticipate consumer requirements businesses have to understand what customers want in advance. In some cases this is easy. For example, supermarkets and butchers stock out with turkeys before Christmas. In other cases it is more difficult. What colors of clothes will be fashionable this year? A chain of stores with the wrong colors might find it difficult to sell in its stock. Tastes and fashions in today’s markets are changing faster than ever before. Marketing must anticipate and respond to these changes. Conversations between customers also are very important and we should be polite, nice, and friendly with them. According to White Marketing is commonly admitted to have progressed through five distinct phases of evolution from beginning: the production era, the simple trade era, the sales era, the marketing company era and the marketing department era. This is the classical progression taught in business schools today to tomorrow’s marketing leaders. But is it an accurate and complete representation of the different eras of marketing? The answer is no, because they are deviating from one era to another. The competitor orientation it is about attracting customers and orientating others markets.

Marketing orientation puts the customer at the heart of the business. The organisation tries to understand the needs of the customers by using appropriate research methods. Appropriate processes are developed to make sure information from customers is fed back into the heart of the organisation. In essence all activities in the organisation are based around the customer. The customer is truly king.

Limitation of marketing concept is: the selling concept, the product and product concept, the marketing concept, the societal concept. [4]

The customer satisfaction is a priority for the company, not because of altruism, but as the best way to achieve its goals of profits and / or growth.

AC 1.2: Evaluate the benefits and costs of a marketing orientation for a selected organization

SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. Setting the objective should be done after the SWOT analysis has been performed. This would allow achievable goals or objectives to be set for the organization. [5]

Costa Coffee SWOT Analysis




Excellent brand name and brand visibility

Eco-friendly practices, for Costa is concerned with conserving energy, water, controlling climate change and recycling

Offers free Wi-Fi in stores and comfortable space for its customers

Wide variety of product offerings

Reputation for value for money

Increasing number of competitors

Limited products at different locations

There are not enough bilingual employees

Present in a limited number of countries




Continuously is increase

Taking over, absorb, or forming strategic alliances with other coffee brands

Grow in various consumer markets

Threat from existing coffee chains and fast food outlets

Intense price competition

SWOT Analysis Summary

Costa Coffee is very large coffee shop. This coffee shop is a British International company. The coffee house offers a lot of coffee like: macchiato, latte, Americano, mocha, etc. Costa accept local groups such as baby and mother, business meetings, reading groups, and local charities to use their shops as a place to hold meetings in a relaxed climate.

PEST Analysis is a facile and largely used tool that helps you analyze the Political, Economic, Socio-Cultural, and Technological changes in your business environment. This helps you understand the forces of change that you’re exposed to, and, from this, take advantage of the opportunities that they present.

PEST Analysis is useful for four main reasons:

1. It helps you to spot business or personal opportunities, and it gives you advanced warning of significant threats.

2. It reveals the direction of change within your business environment. This helps you shape what you’re doing, so that you work with change, rather than against it.

3. It helps you avoid starting projects that are likely to fail, for reasons beyond your control.

4. It can help you break free of unconscious assumptions when you enter a new country, region, or market; because it helps you develop an objective view of this new environment. [6]

Costa Coffee PEST Analysis



Coffee beans are grown in developing countries. Discussions about work conditions, child labor. Also political influence by tariffs and taxes.

The key business challenges for the industry as a whole firmly relate to the economic recession.



People spent more and more money on coffee. Customers do not only go to coffee shops to drink a coffee but also to sit down, and relax

Better and cheaper coffee machines are available for home usage.

Importance having marketing objectives for a firm

The importance of marketing objectives for a firm is very essential. If organizations do not does this will have no clear sense of control? There will not be a clear goal. Each marketing objective has an important reason. Objectives give for organization a sense of direction, purpose and concurrence. Another reason is planning for long term also provides a basis for measuring and controlling the performance of the workforce, the management, and the entire business.

The business plan of organization is very important and the objectives are part of plan. Writing objectives does not only help employees get involved in setting the direction for the company. Objectives also help employees feel motivated on an individual level. Some business owners approach managing employee performance from the standpoint of individual performance objectives. Running a business without objectives is like running a race without a planned route. If you don’t know where you’re going, your chances of finding the finish line are pretty slim, and you might end up simply running in circles. Setting a finish line is only the beginning, however. Successful businesses use objectives to create action plans and govern day-to-day activity.

When you will discuss the major marketing objectives you will accomplish through your plan in quantifiable terms along with a discussion of your budget and the major actions or marketing initiatives you will undertake to accomplish those objectives.

Marketing Objectives of Costa Coffee

Growing the profitability, scale and market share in the other countries; Developing new products that have the potential to reach significant scale; Managing our business so that shareholders value is added by each of our activities; Ensuring that brand is a leader in its field for customer service; Working to meet our responsibilities to the wider stakeholders in our business including commercial partners and the communities in which our brands operate.

Reference List







TASK 2 [Individual Report]

Company History:

Founded in 1909 under the name H. P. Newman, it changed its trading name to Dorothy Perkins in 1919. In the 1960s, Dorothy Perkins was controlled by the Farmer family, who used to own Wister Hosiery. Staff in the branches could expect regular visits from Alan Farmer, whose picture was printed in a booklet handed to new employees. Best known for its lingerie, tights, and sleepwear collections, its other clothes had a hard time competing with the more trendy Lewis Separates, now owned by River Island Clothing Company Ltd, and Peter Robinson. [3]


Today, Dorothy Perkins runs 600 inspirational UK stores and over 90 outlets worldwide, all of them providing unique, wearable and affordable fashion for women aged 25 – 35. Our largest store is which ships to over 110 countries and showcases over 2,000, lines that are updated daily and receives approximately 500,000 customers every week. With over 100 years of experience and heritage underpinning our brand, we’re still setting our sights firmly on the future to provide women with the best of what the high street has to offer, by providing affordable and up-to-date fashion to a broad selection of tastes, sizes and lifestyles.

A.C 2.1 Macro and Micro environmental factors which influence marketing decisions of George

Micro factors

– Customer: Dorothy Perkins always gives their full effort to satisfy the customer and their needs. This chain shop’s attempts to make their product more eye-catching by offering high quality clothes to the customer at the same time they give to satisfy their customers with the reality of needs by giving standard customer service.

– Competitor: Dorothy Perkins has so many competitors such as French Connection, Reiss, Next, Peacock etc. Dorothy Perkins delivers good quality clothes and other stuffs and standard customer service to beat their competitor. Dorothy Perkins tries to give varieties type of offers on clothes to attract customer to give tight competition to Reiss and George who have big portion of customers from market.

– Suppliers: Dorothy Perkins does follow some marketing strategies to keep good relationship with their supplier which they can make their business more profitable. Dorothy Perkins has some important way to maintain good relationship with suppliers such as Foundation Fair trade.

– Distributors: Dorothy Perkins distributes their product themselves. They are having the target to serve the customer with high standard customer service of being cost effective.

Macro Factors PESTLE Analysis

The basic PEST analysis has been further extended with PESTLE. The former categorizes the external environment into six sections: political, economic, social or cultural, technological, legal and environmental. These alternative analytical tools will allow constructing a matrix similar to the PEST method. [1]



Dorothy Perkins runs their business with political factors such as the need to take permission from government to run their business; Sell different variety of Staff (Clothes, shoes, nightwear etc.)

Like other companies Dorothy Perkins do influenced by economical factors. Next has currently 7% of share of the cloth market. Like other companies Dorothy Perkins even had bad affect by the credit crunch.



Arcadia Group and the code of conduct, company’s charities and social aspects such as age, lifestyle, income, which may affect the organisation.

Dorothy Perkins gives their staff’s proper training to make their efficiency higher.

Online shopping, transport innovations, online shopping, card payments etc.



Dorothy Perkins keeps the legal bond with other bank, services are legal.

Next maintain the government act of provision.

They recycle their products which are mainly destroyed away.

AC 2.2 Segmentation criteria to be used for products in different markets

Segmenting a market refers to the process of dividing a market into smaller sub-groups based on some key defining characteristics of consumers. This will allow a business to better target its marketing efforts, using more specific promotional activity to better meet the needs of its consumers. Business may decide to segment a market in a number of ways, such as by geographical region, age, and income. [2] Cardozo suggested industrial market segmentation placed on broad two-step classifications of micro-segmentation and macro-segmentation. This model is one the most common methods applied in retail markets today. It is sometimes extended into more complex models to include multi-step and three- and four-dimensional models. Macro-segmentation centers on the characteristics of the buying organisation, thus separating the market by:

Company / organization size: Dorothy Perkins is one of the most practical and easily identifiable criteria; it can also be good rough indicator of the potential business for a company. However, it needs to be combined with other factors to draw a realistic picture.

Geographic location is equally as feasible for Dorothy Perkins. It tells Dorothy Perkins a lot about culture and communication requirements. For example Dorothy Perkins would adopt a different bidding strategy with an Asian customer than with an American customer. Geographic location also relate to culture, language and business attitudes.

Benefit segmentation: The product’s economic value to the customer (Hutt & Speh, 2001), which is one of the most helpful criteria in Dorothy Perkins shop. It recognizes that customers buy the same products for different reasons, and place different values on particular product features. For example, the access control in Dorothy Perkins markets the same products for two different value sets: Banks, factories and airports install them for security reasons, i.e. to protect their assets against.

Micro-segmentation on the other hand requires a higher degree of knowledge. While macro-segmentation put the Dorothy Perkins business into broad categories, helping a general product strategy, micro-segmentation is essential for the implementation of the concept. “Micro-segments are homogenous groups of buyers within the macro-segments” (Webster, 2003). Macro-segmentation without micro-segmentation cannot provide the expected benefits to the organisation. Micro-segmentation focuses on factors that matter in the daily business of Dorothy Perkins. The Dorothy Perkins divide the market based on supplier profiles that appear to be preferred by decision-makers, e.g. high quality – prompt delivery – premium price vs. standard quality – less-prompt delivery – low price. Purchasing strategy, this falls into two categories: First, Dorothy Perkins contact familiar suppliers and place the order with the first supplier that fulfils the buying criteria. These tend to include more OEM’s than public sector buyers. Second, Dorothy Perkins considers a larger number of familiar and unfamiliar suppliers, solicit bids, examine all proposals and place the order with the best offer.

2.3 The Targeting Strategy Used by Dorothy Perkins

Dorothy Perkins tries to get all type of customers according to their price. They give varieties types of offer to attract customers such as half price or 10% off on specific product. Dorothy Perkins is usually finished with pink walls and paying more attention on lighting in important part of the stores such as service counters, dress for man, women and children section and other section well which is attracting customers to store in Dorothy Perkins as some time the customers take it as a state issue to shop from Dorothy Perkins. Dorothy Perkins targets the busy customer who wants shop physically from their store; Dorothy Perkins has online shopping system and free delivery as well.

A.C 2.4 How buyer behavior affect Dorothy Perkins’s market activities in different buying situation

“The decision-making process by which formal organizations establish the need for purchased products and services, and identify, evaluate, and choose among alternative brands and suppliers”—Kotler and Armstrong (Principle of Marketing; 1989).

Consumer buying situation: consumers are who buy the product for personnel needs. Dorothy Perkins delivered daily used product named Essential Dorothy Perkins. Industrial buying situation: industrial buyers are who buy the product not to use for them to use for their business. For my selected company Dorothy Perkins; it has industrial buyers, because Dorothy Perkins produce product with own labeled and branded what few of others used in their business.

A.C 2.5 Proposal for new positioning of Dorothy Perkins product/service

It is essential that Dorothy Perkins minimize threats visible in order to become competitive and maintain success and profitability. The major threat present in expanding Dorothy Perkins into France and Germany is the inability of satisfying the needs and demands of the consumers situated in France. This threat is major because consumers are vital for a successful business because the organisation is established to meet their needs and wants, resulting in sales and profits. Unsatisfied consumers lead to poor sales, causing a lack of profits resulting in an unsuccessful business that is forced to cease trading which can cause bankruptcy. So in order for Dorothy Perkins to prevent these problems to arise, it is vital that they satisfy their consumers and develop their client le base. This can be achieved by observing and researching the market in France and Germany in order to comprehend the consumers with the countries. Dorothy Perkins will be expanding therefore they could provide consumers with goods and services adapted to suit their wants and needs. Therefore sales will increase resulting in high profits and a successful and competitive business. One of Dorothy Perkins’s main opportunities is the size of the market in France and Germany due to the large population. Therefore next can target their goods and services at a larger market and as a result have more potential customers. This will lead to an expansion in the client le base. This will sustain a good corporate image.

Reference List

1. Clark, P., Golden, P., O’Dea, M., Weiner, M., Woolrich. P., & Olmos, J. (2009). Business and Management. Oxford: University Press, p 46.

2. Clark, P., Golden, P., O’Dea, M., Weiner, M., Woolrich. P., & Olmos, J. (2009). Business and Management. Oxford: University Press, p 194.


Task 3 [Individual Task]

Main elements of an affective marketing mix

A crucial aspect of successful marketing planning is in establishing the right mix. The mix tries to cover all of the key elements needed in the marketing of a product. It is often referred to as the “four Ps” of price, product, place, place, and promotion. More recently, and particularly relevant to the service sector, the additional “Ps” of people, process, physical evidence, and packaging have been added. [1]

A.C 3.1 how products are developed to sustain competitive advantage

Product markets exchange consumer goods purchased by the household sector, capital investment goods purchased by the business sector, and goods purchased by government and foreign sectors. A product market, however, does NOT include the exchange of raw materials, scarce resources, factors of production, or any type of intermediate goods. The total value of goods exchanged in product markets each year is measured by gross domestic product. The demand side of product markets includes consumption expenditures, investment expenditures, government purchases, and net exports. The supply side of product markets is production of the business sector. [2]

Producer products are used to make other goods and services or in the operation of a business. For example, a coffee machine and building are two producer products used by Starbucks to make a cup of served to consumers. Producer products are sold by one business to another through business to business marketing. The cup of coffee is a consumer product because it is bought by individuals or households for personal use. A car bought from a dealer by an individual would be a consumer product bought in a consumer market. In contrast, a car bought by a business for use as a company car would be a producer product. Consumers buy products because of the benefits given by these attributes. Tangible benefits are benefits which can be measured. For example, the benefit of a train journey might be that it gets you from London to Glasgow in four hours. The benefit of a washing machine might be that it will wash for five years without breaking down. Intangible benefits are benefits which, though present, cannot be measured. Some products are bought because of the image they convey. For example, wearing a t-shirt in the colors of a national football team might have been considered fashionable during the World Cup of 2006.

Good design of product is not just about working properly. It is also about how a product looks to the customer. In some industries, such as clothing, cars and kitchen equipment, aesthetics and design have a great effect on how customers spend their money. The basic model behind most firms is to create products or services and sell them to customers for a profit. These products or services must live up to a certain quality standard expected by customers. If the quality level is not met, there are consequences to face for the business. The characteristics of good products are: it should be functional and fulfill the needs of customers. For example, food should taste good. A train service have to be fast, frequent and reliable. A good product should be also affordable, aesthetically pleasing, environmentally and socially friendly.

A.C 3.2 how distribution is arranged to provide customer convenience

Place: Product distribution channels are your places for selling your products. Placement is an easy task like making an e-catalogue for an online store. Product placement planning, you must think of the many paths to everywhere you can sell your product. You must know that whether your product has more sales when its placement near to cashier location, retail store or department store performs better and doesn’t forget about the cost of placements too.

There are several ways in which businesses arrange distribution to provide customer convenience. The methods used may vary slightly based on what sort of business is being operated. For example, those who are running an e-commerce business will have different techniques than those who have a standard “real world” business headquarters. Also, different real world businesses may have different techniques dependent upon the size of the business and where they may be dealing with customers. First, let’s look at e-commerce. is a great example of how distribution can be arranged to make things more convenient for customers. Amazon offers free standard shipping for items that are advertised through Amazon. One of the reasons that they are able to do this is because they have distribution centre located all over the place. When you make a purchase from the site, you will receive your packages from a particular distribution centre and the location of the centre is based on whichever one of the Amazon fulfillment centre is nearest you and contains the item within its standard inventory. This results in savings for the customer as well as faster receipt of items purchase, as they often do need to travel very far. It also means that packages are less likely to arrive damaged or in poor condition, as they don’t have to be in transit as long or switch hands as many times. Next, there are stores that you can walk into an order from their display inventory. The item will then be sent to you from a local distribution centre that is found in another part of your city or state. This method allows stores to cut down on transportation costs as items don’t have to be shipped in large quantities to each individual store. They are just housed at a central distribution warehouse instead. The savings that companies see in their own transportation, warehousing, labor and other costs translate to savings in final prices for customers. They also usually mean that fulfillment processes are more reliable as well, as the network for handling distribution isn’t as complex and prone to problems of challenges.

A.C 3.3 how prices are set to reflect an organisation’s objectives and market conditions

Price is not just a number on a tag hanging on a product, but pricing is an important marketing strategy in all manners. In order to properly price your product, the entire business and marketing strategies are required. Your customer can afford your products, suitable sales channels, product cost, competitors and expected profit.

The price of a product will need to be worth the value of the product. Prices are always established with an organization’s objectives or goals and market conditions in mind. Management decides the marketing strategy, sets the organizational goals and objectives, and decides on what product lines and services are worth pursuing. For this reason, prices are always subject to the character and beliefs of those who lead the organization. Prices are also established based on an organization’s goals and the market conditions at any given time in the business’s operations. Companies examine the market and look at the way certain products are performing. This is how they determine if a product is going to be included in their own product lines or services that they offer. This is also how they decide if they are going to continue to produce a particular product. Products that don’t perform well are often discontinued. Sometimes, prices may be lowered, but this is difficult to do if production costs are still high. A business that cannot see a profit or a sufficient profit on a particular product will simply discontinue it rather than lower the purchase price and lose money on production. Businesses also look at market conditions in terms of competitor performance and pricing in order to set their own success measures. This is why you will see many businesses producing similar products and pricing those products very similarly as well. Businesses that are well established with easily recognizable names are often the ones to set the standard prices within the market. Businesses that are not as recognizable and can’t as easily gain new customers have to set lower prices in order to attract people to purchase their products. If businesses wish to increase sales and win customers from competitors, they have to produce good products and price their items lower than the competition. This is just one of the many ways in which prices are set by an organization’s objectives and market conditions.

A.C 3.4 Illustrate how promotional activity is integrated to achieve marketing objectives

Promotion is concerned with any vehicle you employ for getting people to know more about your offering. Advertising, public relations, point-of-sale displays, and word-of-mouth promotion are all traditional ways for promotion. Promotion can be seen as a way of closing the information gap between would-be sellers and would-be buyers. Your choice of a promotional strategy will be dependent upon your budget, the type of offering you are selling, and availability of said promotional vehicle. [3]

The objectives of promotion

A business must be clear about exactly what it is trying to achieve through its promotion. The main aim of any promotion is to obtain and retain customers. However, there is a number of other objectives, some or all of which any successful campaign must fulfill.

To make consumers aware or increase awareness of a product; to reach a target audience which might be geographically dispersed; to remind consumers about the product. This can encourage existing consumers to repurchase the product and may attract new consumers; to show a product is better that of a competitor. This may encourage consumers to switch purchases from another product; to develop or improve the image of a business rather than a product; to reassure consumers after the product has been purchased. This builds up confidence in the product and may encourage more to be bought at a later date; to support and existing product. Such promotions may be used to remind consumers that a reliable and well thought of product is still available.

The main promotional methods used by the firms are: Advertising: by advertising, the product or service may become more known; Personal selling: selling face to face with the customer. This could involve developing a relationship with the potential buyer; Sales Promotion: there may be special promotions on sales; Public relations/publicity: the product or service may gain publicity, which will gain more demand if cu

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