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Marketing Principles i

Running Head: MARKETING PRINCIPLES

Marketing Principles

[Name of the Writer]

[Name of the Institution]

Marketing Principles ii

Table of Contents

Introduction................................................................................................................................3

Overview of the Company......................................................................................................3

Elements of Marketing Process..................................................................................................3

Market and Environment Analysis.........................................................................................4

Selection of Target Market.....................................................................................................4

Setting Marketing Strategy.....................................................................................................4

Developing Marketing Mix....................................................................................................4

Market Controlling.................................................................................................................4

Benefits and Costs of a Marketing Orientation..........................................................................5

Macro and Micro Environmental Factors Influencing Marketing Decisions............................6

Macro Environmental Factors................................................................................................6

Effects of Technological Environment...............................................................................6

Effects of Cultural Environment.........................................................................................6

Micro Environmental Factors.................................................................................................7

Effect of the Company (itself)............................................................................................7

Effects of the Suppliers.......................................................................................................7

SWOT Analysis......................................................................................................................7

Segmentation Criteria.................................................................................................................9

Implementation of the Targeting Strategy...............................................................................10

Effects of Buyer Behaviour on Marketing Activities in Different Buying Situations.............10

Positioning for the New Product..............................................................................................11

Development of Products to Sustain Competitive Advantage.................................................12

Distribution of the Product.......................................................................................................12

Marketing Principles iii

Pricing Strategy........................................................................................................................13

Integration of Promotional Activity.........................................................................................14

Extended Marketing Mix.........................................................................................................15

Marketing Mixes for two Different Segments.........................................................................16

Differences in Marketing the Products and Service.................................................................16

Difference between International and Domestic Marketing....................................................17

Conclusion................................................................................................................................18

References................................................................................................................................19

Marketing Principles 1

Marketing Principles

Introduction

This paper examines the marketing principles of an organization. The concept of

marketing and its processes are discussed in order to attain in-depth knowledge of the

marketing strategies and achieve competitive advantage in the market. The concepts of

segmenting, targeting, marketing mix and extended marketing mix for the company are also

discussed, with its globalized impacts.

Overview of the Company

The Company taken is “Swoosh Company” that is going to present its new product in

the market, which is an energy drink, named as “Thunder”. The product is going to be

extremely nutritious and healthy for the health of the people. Moreover, it will enrich the

mood of the people with its energy and power, providing the people with a lively feeling

towards their lives. The company is a privatized one, and has a wide network with various

soft drinks and other energy drinks, among which “Thunder” is going to boost the market.

Elements of Marketing Process

Marketing includes a number of processes focusing on the creation of value for the

customers with the use of effective communication and maintaining customer relationship.

These processes enable the company to achieve its goals and objectives, together with the

integration of the interest of its stakeholders. The effectiveness of marketing process ensures

the success of marketing of the company’s products.

Considering the basic elements of marketing process, the company needs to manage

the following areas,


Market and Environment Analysis

The company needs to analyse its environment through primary and secondary

sources. For analysing the environment, the company must use PEST (Political, Economical,

Social and Technological) Analysis approach. Moreover, the company should also observe

the moves of its competitors, so that the long term opportunities may also be analysed.

Selection of Target Market

Selecting the target marketing means to plan the segment groups based on different

needs. The company needs to evaluate the market segment in order to target the market for

catering the needs of the customers.

Setting Marketing Strategy

Marketing strategy of the company needs the evaluation of the product’s life cycle,

including the launching, growth, maturity or the decline. The company should know its

market penetration by increasing the sales to the customers.

Developing Marketing Mix

Marketing mix includes the product, price, place and promotion concerns of the

consumers, which are required to be maintained by the company.

Market Controlling

After considering all the relevant processes, the company needs to analyse and

evaluate the actions and plan the corrective measures respectively. This element includes the

setting of performance standards, and comparing the results obtained with the standards.


Benefits and Costs of a Marketing Orientation

Marketing orientation is the implementation of marketing concept for approaching the

customer’s demands. Being customer-focused, the market is led by the customers’

responsiveness to the products of a company. It helps in the generation of organization-wide

intelligence of market as the main focus is on the customers, based on their present and

potential needs and preferences (Kotler, 2009 pp. 38-60).

Market orientation contains the involvement of customer orientation, competitor-

orientation and their inter-functional synchronization, together with the consideration of

company’s value and the consumers’ profit. It provides the company a competitive advantage

by focusing on the two main areas of increasing the product benefits and decreasing the

customers’ cost for the benefits of the customers (Kotler, 2009 pp. 38-60).

For achieving competency in the market, the company has to carry a thorough

research for responding to the customers’ needs appropriately. Therefore, significant cost is

associated with a strong market orientation. These costs include the development of

technological infrastructure for collecting, analysing and using the data of consumers.

Moreover, the amendment of processes, training requirements, and iteration of products also

intake continuing investment (Kotler, 2009 pp. 38-60).

The company needs to focus on the marketing concept to a greater level as the

customers are well-informed about their demands which make them aspire for more quality

and multiplicity. If not, the company is going to drop its sales to the competitors. Therefore,

the company needs to be more responsive towards its market orientation in order to attain the

maximum competency in the market (Kotler, 2009 pp. 38-60).


Macro and Micro Environmental Factors Influencing Marketing Decisions

For the marketing of the proposed product, the marketing environment is going to be

affected by several factors including the macro and micro environmental factors, influencing

the marketing decisions. The environment of marketing carries threats and opportunities in

the same way; therefore, these are to be examined carefully in order to keep up successful

association with the associated factors of outside marketing (Kotler, 2009 pp. 50-70).

Macro Environmental Factors

It carries the factors that are deemed to outline the opportunities to the company and

to front the threats to the company. These factors include,

Effects of Technological Environment

The company should consider the technological involvement in the development of its

new product as the fast paced nature of technological changes make the products obsolete

quickly. Therefore, the assortment of technology should be carefully done in order to sustain

in the market with newer opportunities towards the product initiation (Kotler, 2009 pp. 50-

70).

Effects of Cultural Environment

It encompasses the basic values of the society including the behaviours, partiality, and

insights of people. The core beliefs of people cannot be altered but the secondary cultural

values are needed to be measured by the marketers in order to make people respond

optimistically to the new product. Therefore, the launching of “Thunder” product must

integrate these cultural factors in order to attain maximum level of competency in market

(Kotler, 2009 pp. 50-70).


Micro Environmental Factors

These factors are aimed at the assembling of delivery system of values to the

consumers, keeping in mind the fact that the changes in market are impulsive and quick.

Effect of the Company (itself)

The internal environment of the company affects the marketing decisions seriously.

The top management should play its role in setting the mission, policies and strategies of the

company. It is followed by the marketing managers to make decisions pertaining to the preset

parameters. These managers also focus on other departments of the company, including

Research & Development, finance, accounting, purchasing and manufacturing (Kotler, 2009

pp. 50-70).

Effects of the Suppliers

While considering the impact of the company’s internal environment, the company

needs to focus on the importance of its suppliers. The supply availability should be monitored

in order to avoid the shortage as this will cause the failure of the product in the market

(Kotler, 2009 pp. 50-70).

SWOT Analysis

The company aiming at the achievement of competency in the market, enjoying great

deal of success and achievement in the industry sector among its competitors needs to

evaluate its SWOT for further accomplishments in future.

Strengths

• A well-renowned brand


• Quality products and materials

• Financially strong

• Loyal to customers

• Strong channel of distribution

• Wide-variety of quality products

Weaknesses

• Lack of use of social media

• Less involvement of employees’ opinions and feedback

• Entirely customer focused

Opportunities

• Increase the use of social media

• Increasing employees’ involvement in the company’s processes

• Making the product globally recognized

• Provide products at reasonable prices in specific cases

Threats

• Competition from other companies

• Competition from low cost providers

• Cohesive strategy and approach for all regions and markets


Segmentation Criteria

The “Swoosh” Company has developed the customer segmentation on the basis of

considering the behavioural and psychographic segmentation, along with the demographic

and geographic segmentation. Segmentation is the division of customers into groups on the

basis of their desires and readiness to buy a certain product (Thomas, 2007).

The psychographic segmentation of the product includes the considered sectors of

higher class, higher middle class, and middle class; while the behavioural segmentation of the

product comprises of the sick people, health conscious people and the sophisticated people

who refer t take newer products from market (Thomas, 2007).

The demographic segmentation carries the inclusion of the sectors based on their

buying behaviour, including Individuals, Sportsmen, Family and Business buyers. These will

respond optimistically to the “Thunder” product as it is aimed at providing them energy and

liveliness, booming their moods.

The business buyers will also use this product to run their business as more customers

will prefer it because of its energetic effects; while the geographic segmentation is not

specific to certain areas as the company at first is going to launch it locally, then with its

success the company will expand the business of this product to global market (Thomas,

2007).

Among these, the most appropriates segmentation will be the psychographic and

behavioural segmentation for the new product of the company in different markets as these

customers will be satisfied with the use of “Thunder”, and therefore will be contributing

greatly to the profits earning of the company.


Implementation of the Targeting Strategy

After the analysis of segment marketing, the target market is going to be determined

on the basis of our product class. The target customers are the fun loving people i.e. youth,

the tourists and sportsmen; thus, acquiring a huge market segment. People willing to have

energy drinks would love the “thunder” because of its mood boosting characteristics. These

targeted customers have been segmented on the basis of the geographic, psychographic,

demographic and behavioural considerations (Chen & Zhang, 2009 pp. 43-50).

However, the strategy used for targeting the market will be mass marketing rather

than the differentiated one. Mass marketing casts a widespread net, and businesses utilize

mass advertising to market one particular product or service to as much people as possible

without differentiating exactly how several segments from the market place may act in

response while differentiated marketing targets several segments of market with several

campaigns at a time. This targeting is although more productive to the company, but it

consumes enough cost in running a number of promotional campaigns (Chen & Zhang, 2009

pp. 43-50).

Effects of Buyer Behaviour on Marketing Activities in Different Buying Situations

While running a business, it is important to consider the buying behaviour of

consumers, irrespective of the nature of the business. Our company intends to launch the

new product and for selling it we have segmented and targeted our market on the basis of

different factors (Oliver, 2010 pp. 385-387).

The buying situations are going to affect the product place in the market. Firstly, the

social media greatly affects the product place in the market. Therefore, the strategic planning

regarding the product initiation should incorporate the advertisement through social media

and other online strategies. In fact, the company should have its page on the web so that


consumers can directly access the details and decide accordingly as most of the people are all

time present on online resources. This would help the company in getting immediate reaction

of the consumers toward the product (Oliver, 2010 pp. 385-387).

Moreover, there are people who prefer to buy on their choice or selection instead of

researching or buying other options i.e. straight re-buy. Therefore, these customers will not

prefer our product, but they can be aggravated by Word-of Mouth technique. Still, there are

people who prefer the situation of Modified Re-buy as they tend to search for the alternatives

based on quality or sometimes pricing techniques. These customers are being targeted by our

company as they would result in productive outcomes by purchasing our product and thus,

leaving a reliable impact on the company (Oliver, 2010 pg. 248,249).

Positioning for the New Product

The positioning strategy of the new product can be developed or visualized in several

ways. The company can originate it mainly from its competitors, the object attributes, the

consumers involved and the product characteristics. The mere aim of positioning is to put up

a favorable image of the product in the market (Graham, 2008 pp. 210-230).

The uniqueness of the product needs to be clearly described to the consumers. The

price-Quality comes at first in the business approach as to attract the preference of the

consumers towards our product. Therefore, the positioning strategy of the company is based

on providing the quality product at reasonable price to all the segments of the consumers

(Luan & Sudhir, 2010 pp. 444-457).

The target group should be made aware of the availability of the product with the use

of advertisement and promotions. This would help the company in spreading the costs across

the achievement of larger outputs (Graham, 2008 pp. 210-230).


Development of Products to Sustain Competitive Advantage

The company needs to consider all the relevant aspects of the development of product

in order to maintain the competitive advantage among the competitors in the market. For this

purpose, the development process needs the consideration for the better place of the company

among the rivals.

The development of new product is a crucial process for the competency of the

organizations. At first, the company needs to evaluate its external environment i.e. marketing

audit. With this, it is easier to plan the product to be brought into the market. The new

product thus undergoes further steps after this sort of conceptualization. The technical-

research is carried out for further dealing out towards the new product. As the base of the

product is decided, the company then follows the screening of the idea generated. This

includes the opinions from the staff, customers, and even from other businesses (Porter,

2008).

It is then followed by the concept development for finding out the potential costs,

profits and revenues generated from the product and other associated factors for sustaining

the competency in the market. With these considerations, the marketing managers then decide

to develop the product and start the commercialization by means of advertisement and other

social media (Porter, 2008).

Distribution of the Product

The distribution of the proposed product “Thunder” needs to be considered as it

comes under the process of marketing mix. It plays significant role in the enhancement of

consumers’ strength by means of focusing on their expediency. Therefore, the Company

needs to better plan its distribution strategy as it is the main competency of the company. It

comes under the Place component of the Marketing Mix as the availability of the product


needs to be made at an easy access to the consumers. The company realizes that the enhanced

accessibility of the consumers will result in the enhancement in potential sales of the

company (John, n.d).

The target market for the product “Thunder” includes the fun-loving people, youth,

tourists and sportsmen. These people are segmented on the basis of their psychographic and

behavioral responses. The product will be made available at almost all the stores, also

including the supermarkets. The consumers will be requiring it mainly for the purpose of

having freshness in their attitudes. Therefore, the company aims to make it available at all the

places, maintaining the competency and satisfying the consumers’ needs at the most possible

level (John, n.d).

Pricing Strategy

The pricing strategy comes under the marketing mix of the company. It needs to be

set for the “Thunder” in order to reflect the objectives of the organization. The pricing of

“Thunder” is based on the variety of volumes in which the drink will be available. The

company has decided to launch the drink in 250 ml, 500 ml, and 1 liter for the individuals,

the tourists and the sportsmen and for a small family respectively. As the company has taken

care in the availability of drink in variant volumes for providing the people a better chance to

taste or check the quality of the product based on its novel nature, it is also taken into account

in terms of setting the prices.

Its pricing strategy also considers the competitive nature of the industry. Therefore,

the company has decided to launch the drink at reasonable prices in order to attract more

people towards it. The 250ml will cost 10 dollars, the 500 ml will cost 20 dollars and the 1

liter drink will cost 35 dollars to the consumers.


The pricing decided seems to be causing loss to the company, but in the long run it is

going to generate high revenues to the company. The cost utilization of the company in this

regard will be generated back with the profits and revenues if the segment and target market

is satisfied with the product quality. It will then be increased with sustained quality after

getting the assurance of consumers in the product (Saaty & Vargas, 2012 pp. 159-169).

Integration of Promotional Activity

Marketing is the process of the development of product and services, then promoting

the developed product to the targeted customers with the completion of sales. The most

important aspect is to attract the customers to buy the new brand over competitors. Therefore,

it requires consistency, coordination, reach and repetition in the promotional activity of the

company (Kokemuller, n.d).

The achievement of long-term loyalty from the consumers’ side with gaining market

share needs the element of consistency in the messages about the product. It should contain

the core benefits of the company with the assurance of product quality. The delivered product

will be on the commitments made in the promotion (Kokemuller, n.d).

The company will cater the timing, longevity and selection of the promotions for

reaching and impacting the customers effectively. Such coordination is must for the

competency in the market. The factor of reach incorporates the target market of the company

and the role of media in this regard. The company is going to reach its audience maximally

for gaining sales and recognition. The social media is going to assist the company greatly in

terms of attaining maximum users’ attention, so that they may be pursued to buy the product

as an alternative to their traditional drinks.

As the promotional plan will be developed, the company will keep on hitting the

target customers repetitively. For this purpose, the paid advertising campaigns will also be


used so that the consumers may be directed to prefer “Thunder” for their refreshment

(Kokemuller, n.d).

Extended Marketing Mix

Besides the elements of product, price, place, and promotion, there are further

elements in the marketing mix that help the companies in achieving their marketing

objectives. The additional elements people, process and the physical evidence also assist the

organization in the enhancement of consumer buying behaviors. People are the most

important element in supporting the products of the company. For attracting more customers,

proficient customer service people play an important role as they commit to give average

operational hours, and response time, which maintains the higher level of customer

satisfaction. If the company has the staff that is knowledgeable, then the company is greatly

benefited as these staff adds remarkable value to the new product

(www.masterclassmanagement.com).

The element of process is also essential as the customers are more prone towards the

image of the company in terms of focusing on the shape of the business. Therefore, the

policies and the procedures pertaining to the products and the services have impacts on the

buying behaviors of the customers.

(www.masterclassmanagement.com)

The last element is entirely dependent on the customers’’ requirement; therefore,

these are needed to be updated. It includes the appearance of the products or the services and

all the relevant features of the company. Product liability, visual packaging of the tangible

products and the physical evidence of the intangible services also plays an important role in

achieving the marketing objectives of the company (www.masterclassmanagement.com).


Marketing Mixes for two Different Segments

The two identified segments of consumer are the high class customer segment and the

middle income class consumer segment. Owing to the notable difference in the two consumer

segments, the marketing mix for the two segments will also differ considerably Kotler &

Mcdougall, 1996).

The product for the two segments will be differing on the basis of the pricing that the

firm will do for each of the segment. For the high income class segment, the product

packaging will be of supreme quality, which will be of elite class. For the low income class

segment, the product packaging will be from normal category material. However, the product

will not be of low quality because of the brand image associated. The pricing for the two

segments will also be different. The product for the high income class segment will be

offered at a considerable high price because of the finest quality of the material used and the

nature of the target segment (Kotler & Mcdougall, 1996).

The pricing for the middle income class segment will be kept at a normal range. The

placement for the high class segment will be only exclusive supermarkets and stores whereas

the placement for the middle income class segment will be intensive. It will be made

available in all retail stores, shops and markets. The promotion for high class segment will

mainly centre around BTL activities and social media advertising whereas the promotional

mix for middle income class segment will focus on ATL activities such as TV, radio and

magazine advertising (Kotler & Mcdougall, 1996).

Differences in Marketing the Products and Service

The marketing of the products is differentiated in terms of the opposite segment i.e.

businesses and the customers. Business to business transaction improves the performance of

the business, affecting the buyers’ careers in the long run. The advancements in technology


makes it allowed to be done online. Moreover, the company earns a cost reduction with this

sort of marketing. The businesses need to conduct a thorough research for this purpose

(Sarkees, 2011, pp. 785-795).

On the other hand, business to the consumers marketing strategy focuses on the

commercialization to reach the customers directly. It provides comparatively convenient

purchase, with update of the prices and offers. For this purpose, the company has maintained

customer service centres even on websites. Being technologically aware, the consumers are

informed about the product quality and the company’s image in the market, which requires

utmost care from the company. It becomes critical to the company as customers are price

sensitive and easily lured away (Sarkees, 2011, pp. 785-795).

Difference between International and Domestic Marketing

As a matter of fact, there is a huge difference between the international and domestic

marketing. In international marketing the company has the benefits of approaching the

consumers across the globe; thus, securing more competencies and generating more benefits.

In domestic marketing, the companies market their products and services staying within the

boundaries. The financial market is local, dealing with single set of economic issues and

competition (Bartels, 1968 pp. 56-61).

The advantages of international marketing are that the company has maximum

chances of promoting its brand around the world; thus generating more profit margins and

earning competency in the world market, but the international marketing requires more than

enough of the financial resources (Bartels, 1968 pp. 56-61).

Similarly, the domestic marketing has the advantages of no language barriers, and to

obtain and interpret the local marketing trends data is easier for the company. Moreover,

there are no issues of cultural management; therefore, the consumers’ demands are easily


catered. The disadvantage of the domestic marketing is that the company is unable to

compete with the branded competitors across the globe (Bartels, 1968 pp. 56-61).

Conclusion

All in all, it can be concluded that the development of new product or service

encompasses intense severity and cautiousness as it is the matter of recognition, with

sustained and more competitive advantage among the competitors. There remains the

difference of international marketing and domestic marketing, but the companies are capable

of dealing with the differences, with careful implementation of strategies.


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