Marketing Principles

Marketing Principle Nelson College 15/04/2013

MARKETING PRINCIPLES

UNIT 4

BTEC Higher National Diplomas (HND) In Business

LECTURER: Isaiah Oino

STUDENT: Elena Ramona Botez

ID: 9120103

SUBMISSION DATE: 15/04/2013Elena Ramona Botez Page 1


INTRODUCTION

In the this modern world, marketers want to build a customer driven marketing strategy

for creating lasting customer relationships. To do this, they can use one of the five marketing

management philosophies as: production, product, and selling, marketing and societal

marketing concept. The appropriateness of these philosophies depends on the nature of the

business and target market. This assignment will discuss each of these philosophies for a

particular product and compare them. One of the products is TATA NANO, the world

cheapest car. The modern concept of Marketing is a total system of interacting business

activities designed to plan, price, promote and distribute want-satisfying products and

services to present and potential customers. (William, 1978) The modern marketing is

abroad and customer oriented concept. One of the most important components of marketing

is the Marketing Mix. The Marketing Mix must be delivered in the right way to the right

people at the right time. It is important that all the elements are given equal and balanced

importance and managed. Marketing Mix is considered as the blend and batter of the

ingredients that determines the appreciation by the consumers.

Elena Ramona Botez Page 2


A.C.1.1 Explain the various elements of the marketing process

Marketing can be defined as: The management process responsible for identifying,

anticipating and satisfying customer requirements profitably (The Chartered Institute of

Marketing, year). This definition emphasises how wide Marketing is within an organisation

from identifying customers needs and wants by carrying out valuable research that can

eventually be profitable to that organisation. Satisfying needs and wants through an

exchange process (Kotler, 2008). The decision-making process has as a starting point the

needs of clients, but cannot be ignore those two important factors of markets: competition

and change. Marketing should be seen not just as a service of a department, but the

philosophy of the organisation in its whole.

Product-if the product is not good enough to satisfy customers needs, no marketing can

make it sale and its features are on quality, branding, attractive packaging, warranty is the

success of success or failure of the product.

Price - the cost of the customer. The price of the product is the amount of money that the

customer has to pay for a product or service. The cost of the customer is the amount of money

that the customer is willing and has at its disposal, to pay for a product or service.

Placement Comfort The investment is aimed on making the product available to the public.

We all know that the market is the place where the demand meets supply. There is the

comfort of the client who will rather order via the Internet, for reasons of comfort, rather than

to go to the store and buy a product from there (Needham, 1999).

Promotion The promotion includes the activities that communicate the merits of convicting

and target customers to buy it. Promoting a product is perceived as a communication, it

should be. It is crucial that the promotion to be carried out in a more personal way, people to

people (Kotler and Armstrong 2008).

SWOT analysis will help to determine which new products to introduce in the company and



examine how existing products are doing.

Strength the company has an advantage over the other companies because it sales are

associated with good quality.

Weaknesses the size of the company is too small and the product is week because is based

at a particularly type of person or age group, or the company has a small amount of money.

Opportunities is for the company to expand over growing population of that area.

Threats the company products can be found also in the other market (competition)(Neil

1984).

On the basis of analyses marketing process an organisation overall strategy is identified as an

integrated strategy with differentiation and focus on product, price and promotion to meet the

customers demand, and it also combines with focus strategy to build the customers

satisfaction and loyalty.(Pettit 1997).

A.C. 1.2. Evaluate the benefits and costs of a marketing orientation.

Market orientation has been characterised as that part of an organisation that requires

customer satisfaction to be paramount within the operations of a business (Liu 2002). This, in

turn, produces superior value for customers and outstanding performance for the firm

( Narver and Slater, 1990).The marketing concept is about an equilibrium between companys

capabilities and customers wants, and holds the desire and needs of the target market must be

determined and satisfied in order to successfully achieve the goals of the producers. The main

elements of marketing concept are follows: customer orientation, mutually profitable

exchange and anticipation and organisation integration (Mintzberg, 1996).

Market oriented companies are characterised by their focus on the customers, and work to

understand who their customers are and what they want. The company strategy and practice



supports a long term approach to the vendor-customer relationship, and instead to push the

products, the company try to identify and provide solutions to meet customer needs. Some

organisations are sales oriented, others are engineering driven.(Gronroos 2007).

Benefits

According to Floyd (2002) some of the benefits of the marketing approach an orientation

are: improve communications, competitive advantage, customer loyalty and trust, achieve

better co-ordination of activities, profits to grow the business, achieving long term goals,

referrals from satisfied customers and increase customer base, up to date comprehensive

knowledge of the target markets.

Costs

The main costs involved in marketing orientation are considered as the direct or indirect

costs, and could be summarised as: cost of customer retention, advertising and promotion

costs, cost of regular market research, todays product is tomorrow throwaways, cost of

initial product development, staffs cost including wages an each department, cost of setting

up the marketing oriented organisation structure. Sometimes costs outweigh benefits but with

the right leadership it can be reversed (Borden, 1994)

A.C.2.1 Show macro and micro environmental factors which influence marketing

decisions.

As the market environment changes, managers have to adapt their strategies and

organisation. Unless these changes are made, the business will no longer fit the needs of the

moment - it will be made obsolete by changes in customer wants, new technologies and new

competitors that have adapted more effectively" (Doyle, 2002). Marketing decisions have to

take into account the Macro and Micro environments which will influence the company and

its decisions.



The micro-environment, are internal factors close to the company that have a direct impact on

the organizations strategy and decisions.

Customers As all businesses need customers, markets need to be observed closely, as

companies will only survive if they are meeting their needs and wants.

Employees Making sure that the correct skilled staff is employed are essential, as is keeping

them motivated, if not will affect customer service and ultimately sales. Training and

development is needed for companies to stay ahead of the game (Hooley, 1998).

Suppliers .Plays an important role, if prices are increased for materials or manufacturing, this

will increase prices and affect profits and if there are delays with manufacturing or supply of

goods, customers will be affected and customer satisfaction may be lost.

Shareholders .As organizations need greater inward investment for growth they face

increasing pressure to move from private ownership to public. Satisfying shareholder needs

may result in a change in tactics employed by an organization and will difficult for the

company to keep to its core values, when shareholders are more concerned with

profit(Joober,2007).

Media - positive or negative media on an organizations product or service can in some cases

make or break an organization. Consumer programs such as Which and Watchdog, have a

wide audience can have a very powerful impact, forcing organizations to change their plans.

With technology such as the internet, word is soon spread and whilst a company image takes

a long time to create, it can be quickly demolished.



Diagram 2. www.allaboutmarketing.blogspot

The macro environment involves looking

at uncontrollable variables that influence the company. This is always changing, and the

company needs to be flexible to adapt; Tax changes, new laws, trade barriers, demographic

change and government policy changes are all examples. Demographic environment is

related the study of human populations in terms of size, density, location, age, sex, race and

can be used to target market campaign. It is people who make market and contribute to the

demand which helps in produce and supply. Economic

environment include salary levels, credit trends, and pricing patterns- that affect consumer



spending habits and purchasing power. The state of the local and global economy has had a

big influence on any organization (Brassington, 2007).

Natural environment involves all the natural resources, such as raw materials or energy

sources for the production of a product needed by companies. Concerns for the environment

have increased vastly over the years and there is an increased demand for businesses to take

greater care and responsibility for it. Environmental issues could mean shortages of raw

materials, increased cost of energy, increased air pollution and damage to landscapes and

wildlife.

Technological environment Include IT, Changing Work practices and Ecommerce, and change

every fort night. Many businesses have now taken to trading online as well as by phone or

in person, being technologically upgraded and using the latest technology which provide

competitive advantage over the competitors. On this time can be seen many indescribable

innovations like Tata Nano, Apple I phone, M-commerce etc.

Political and legal environment includes all laws, government regulations , and lobbying

groups that influence or restrict individuals or organizations in the society, policies like traffic

light(how much sugar and salt on products),displaying the expire date, selling alcohol and

cigarettes etc. Also there is a large customer group who oppose any unethical acts by the

business (e.g. Coca Cola suffered lots of opposition as pesticides were found in its cold

drink).

www.managementfunda.com

A.C. 2.2. Propose segmentation criteria to be used for products in different markets, in

Tata Nano scenario.



According to Strydom(2008), market segmentation according is the process of dividing the

total heterogeneous market for a product into several segments, each of which tends to be

homogeneous in all significant aspects. Then select one or more market segments as target

market. The firm develops separate marketing mix for each segment or group of segments in

the market. The TATA NANO is a giant family business that dominates the Indian markets. The group comprises of 91 operating companies in seven business sectors. These sectors are

as follows, information systems and communications; engineering; materials; services;

energy; consumer products and chemicals. Generally Tata Nano follows the marketing segmentation concept and they have succeeded which already prevails in the history. Tata

Nano which come under the passenger car segment was launched in January 2008, using the

segmentation on variable orientation as : geographic rural and urban, where market was

segmented around the needs and to satisfy each segment, demographic family size and

income, behavioural benefit and users status.

Tata Nano was entered on market segmentation with the pricing strategy of market

penetration and will focus mainly in lower and middle income group, and on the customers

buying a new car rather than investing in a second hand car. From this point of view Tata

Nano will be a great option for customers as it is a new smart car with all the facilities and

priced at a lower rate when compared with a second hand car with no facilities or standards

as per rules (www.tatamotors.com/our_world/profile.php).

A.C. 2.3. Choose a targeting strategy for a product or service.

According to Kotler(2006) targeting as the act of developing measures of segment

attractiveness and selecting one or more of the market segments to enter.

Market targeting - The process whereby one or more of the market segments previously

identified are evaluated and selected. To begin target marketing the business needs to identifythe different market segments. To identify these, the business separates the market into

different groups, mutually exclusive, but at the same time have comparable characteristics in

one group. Next stage of targeting focuses on evaluating and selecting one or more previously

identified market segments, which according to Kottler(1984), the select segment must be

distinct, assessable, measurable and profitable. There are four different targeting approaches:



price, promotion, place and product.

TATA NANO Company is targeting lower income group with family, first-time buyers of car

(fresh graduates) and motorcycle owners. TATA NANO motors has a targeted market

approach. Tata like any other multinational has targeted the middle income group population,

as they are larger in number. In order to sell a product a company has to first make public

there importance. The Product created by the company is made for the middle class group;

the product was planned such that it would provide quality and features well than those which

are already present. The reduced cost is one of the target strategies and should not

compromise on the quality and the safety. The Price of the product was decided to be around

$3000 including the taxes and other costs as the dealer margin and transportation costs.

Promotion of the product was not a problem to the company with its innovative ideas and the

low price tag attached the product attracted wide media attention, widely dispersed rural low

economy population.

The market skimming strategy is followed where it initially places price that would bring

large demand but then with the understanding of the response and the trend changes the cost

of the product is suitably fixed changing its characteristics according to the needs of the

consumers(www.tatamotors.com/our_world/profile.php).

Tata Nano implements the pricing strategy, which is to set a low price for a new car in order

to attract a large number of buyers and a large market share. This price strategy will be done

by achieving high sales volume, which will results in falling costs, allowing the company to

cut the price even further. Tata Nano main price objective are: maximum current profit and

maximum market share. These prices reflecting a strategy of taking a share from established

competitors.

A.C.2.4 Demonstrate how buyer behavior affects marketing activities in different buyer

situation.

Consumer buying behaviour identifies and studies the psychology of consumer buying

pattern and behaviour of when, why, how, and where people do or do not buy product

(Davidson, 1987). Hence, when studying on consumer buyer behaviour it looks at the

theoretical elements such as psychology, sociology and economics. An increase emphasis is

given on consumer decision making process and that has led to develop and study many



consumer decision making models. Consumer decision making models such as "Black Box

model" the" six steps" consumer behaviour model which all gave insights to factors that

would affect the consumer decision making (Kotler, 1994). Problem recognition generally the buying process starts when the buyer recognizes a problem

or need triggered by internal or external stimuli. Marketers need to identify the circumstances

that trigger a particular need by gathering a number of informations from number of

customers and to recognize the needs of the customers by basic research and trigger them. As

the population is growing in large numbers they needs are growing, so the market have to

develop such strategies so that it be reached to all people and too trigger their demands and

satisfied them(King,2005).

Information search can distinguish between two levels of involvement where person simply

becomes more receptive to information about the product. At the next level, that person may

enter an active information search: looking for reading material, phoning friends, going

online and visiting stores to learn product.

Evaluation of alternatives where consumers have a lot of alternatives as different schemes are

coming to market by different company. Customers different find the alternatives as they

have plenty of alternatives.

Purchase decision. In the evaluation stage, the consumers form the preferences among the

brands in the choice set. The consumer may also an intention to the buy the most valued

brand. They take the following sub decisions: dealer, quantity, timing and payment method.

Post purchase decision .After the purpose, the consumer might experience dissonance the

stems from noticing certain worrying features or hearing positive things about other brands

and will be alert to information that supports his decisions and marketers must monitor post

purchase satisfaction, post purchase actions, and post purchase product uses (Saunders,

1998). In the same time organisational buyer behaviour is different from the consumer

behaviour and involves more than one person on making decisions with the following stages:

recognise the problem, develop product to solve the problem, search for products and

suppliers, evaluate products relative to specification and select and order the most appropriate

product.

A.C.2.5 Propose new positioning for a selected product/service.



Positioning is what the customer believes about your product's value, features, and benefits; it

is a comparison to the other available alternatives offered by the competition. These beliefs

tend to base on customer experiences and evidence, rather than awareness created by

advertising or promotion (Oliver, 1995). Marketers manage product positioning by focusing

their marketing activities on a positioning strategy. Pricing, promotion, channels of

distribution, and advertising all are geared to maximize the chosen positioning strategy.

For example, a company like Kellogg's is constantly developing new breakfast cereals for

adults and kids -the product element is the new product itself and getting the right price

involves examining customer perceptions and rival products as well costs of manufacture,

promotion involves engaging in a variety of promotional activities e.g. competitions, product

tasting etc., and place involves using the best possible channels of distribution such as leading

supermarket chains. The product is the central fact on which marketing energy must

focus(Floyd,1942).Finding out how to make the product, setting up the production line,

providing the finance and manufacturing the product are not the responsibility of the

marketing function. However, it is concerned with what the product means to the customer.

Marketing therefore plays a key role in determining such aspects as: the appearance of the

product - in line with the requirements of the market and the function of the product -

products must address the needs of customers as identified through market research. The

product range and how it is used is a function of the marketing mix. The range maybe

stretched or a brand may be extended for tactical reasons, such as matching competition or

catering for seasonal fluctuations. Alternatively, a product may be repositioned to make it

more acceptable for a new group of consumers as part of a long-term plan.

Tata Nano will position itself as the world cheapest car and yet does not compromise the

quality, safety and environment. This positioning will be achieved by leveraging Tata Nanos

competitive edge: industries experience from the parent company Tata Motor who has been in

vehicles industries (commercial, passengers & utilities) since 1945. Tata motor has good

supplier-manufacturer relationship with more than 100 components

(www.tatamotors.com/our_world/profile.php).

A.C.3.1. Explain how product are developed to maintain competitive advantage.



MacMillan (1983) suggests that gaining a competitive advantage requires an understanding

and anticipation of response barriers, intelligence systems, preemption potentials,

infrastructure requirements, calculated sacrifices, general management challenges, and punch

and counterpunch planning. A product's life cycle is the stages of development and sales

figures a product goes through over its time on the market. For anyone thinking of developing

a new product for the general market this is an extremely important factor to consider when

determining whether the product is worth putting on the market at all and also in determining

the work involved at different stages in the products life.

Market introduction stage: costs are very high, slow sales volumes to start, little or no

competition, demand has to be created, customers have to be prompted to try the product,

makes no money at this stage.

Growth stage: costs reduced due to economies of scale, sales volume increases significantly,

profitability begins to rise, public awareness increases, competition begins to increase with a

few new players in establishing market, increased competition leads to price decreases

Maturity stage: costs are lowered as a result of production volumes increasing and experience

curve effects, sales volume peaks and market saturation is reached, increase in competitors

entering the market, prices tend to drop due to the proliferation of competing products, brand

differentiation and feature diversification is emphasized to maintain or increase market share,

industrial profits go down.



Diagram 2. www.finntrack.co.uk

Saturation and decline stage: costs become counter-optimal, sales volume decline, prices,

profitability diminish, and profit becomes more a challenge of production/distribution

efficiency than increased sales.

A competitive advantage exists when the firm is able to deliver the same products with the

same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that

exceed those of competing products (differentiation advantage). Thus, a competitive

advantage enables the firm to create superior value for its customers and superior profits for

itself(www.managementfunda.com ).

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

Distribution (or "Place") is the fourth traditional element of the marketing mix. The other

three are Product, Price and Promotion. Distribution in marketing acts importantly to attract

customers convenience therefore; the system of distribution of an organization can show the

key ability for the organization. Distribution is beneath the group of place and therefore

organizations build-up an accurate distribution technique so that its easily accessible to the

customers and it can improve possible sales for an organization (Baker, 2003). For example if

Fanta does not work on its distribution services and Fanta bottles are just accessible at their



factories then consumers might not be keen to get them. Its more appropriate for the

consumer to purchase Fanta from a close by retailer as compared to getting it from factory

and retailers sell directly to end-users via a physical store, website or catalog. Therefore

distribution system of an organization can be both its weakness and strength. Businesses in

current scenario make sure that their distribution channel should be strong so that their

product is available where there is need. It should be easily accessible to the customers.

Companies make sure the availability of their products at retailer shops and stores where

customers can easily (http://marketingteacher.com/lesson-store/lesson-marketing-mix.html).

Direct/sales team: One or more sales teams that you employ directly. You may use multiple

teams that specialize in different products or customer segments.

Direct/internet: Selling through your own e-commerce website.

Direct/catalog: Selling through your own catalog.

Wholesaler/distributor: A business that buys products in bulk from many producers and then

re-sells smaller volumes to resellers or retailers.

Consultant: A consultant can develop relationships with businesses and can provide either

specific or very broad services; they may recommend a producers product or simply purchase

it to assign a solution for the customer (King, 2005).

A.C.3.3 Explain how price are set to reflect an organizations objectives and market

conditions.

The pricing is a factor of importance in marketing both in getting the product accepted by the

target market, in generating sufficient revenue for the organization and deal with the various

elements that constitute the price of marketing-mix. This is the only element, which generates

revenue when all the others talk about cost. Pricing is important in one more sense also. It is

highly risk prone decision making area and a slightly wrong decision can hamper the

revenue, growth and future of the company. However you may like a product; you cannot buy

that if the price of the product makes it unaffordable. Hence, the companies must use pricing

keeping in mind the customers they target at (Jobber, 2007).

Penetration pricing comes where price is deliberately set at low level to benefit from

customer's interest and establishing a foot-hold in to the market. It may be also used be used

at a later stage in the Products Life Cycle to save the product from premature death or

premature old age by switching from market skimming.



Premium pricing - is the practice of keeping the price of a product or service artificially high

in order to boost good perceptions among buyers, based exclusively on the price. The practice

is planned to exploit the (not necessarily justifiable) tendency for buyers to assume that

expensive items enjoy an exceptional status or represent exceptional quality and distinction

(Doyle, 2001).

Psychological pricing - is the price designed to have a positive psychological impact. For

example, selling a product at 3.95or 3.99, rather than 4.00, and is commonly used be big

retailers. It is used as a surrogate to indicate the product quality or respect. Geographical pricing - is different types of pricing at different locations and could be in

terms of barter, countertrade and foreign currency.

Price skimming - helps in segmenting the market. The price can be lowered to suit each

segment and thereby the demand of each segment is satisfied and the manufacturer makes

maximum profit from each of them. The high price of the product brings huge benefits for the

dealers as well.

The setting of the correct price is of enormous important as it is paid by the consumer,

examines the economic determinants of price levels, looks at how organizations make

decisions about what to charge, surveys the battleground for price wars, and explains why it

is necessary for marketers to have a good understanding of company finance(Jobber,2007).

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

objectives.

Promotion is the activity of informing, persuading and influencing the consumers purchase

decisions. There are four main tools of promotion activities: (1) advertising, (2) sales

promotion, (3) publicity and (4) personal selling (Mintzberg, 1998).

Advertisements can be effective, but expensive and have to make sure that the target

audiences are identified. The costs can vary according to the medium and level of exposure

and can include: radio programs, local, state international or national newspapers, newspaper

supplement (e.g. education news) trade journal or magazines, industry newsletter. If you are opening a new store or introducing a new product, you must build consumer awareness of

your existence. Promotion of a new store(s) or products, which are early in their product

lifecycle, should be geared toward providing information. Promotion budgets for upcoming



periods are decided according to the sales objectives and a promotion budget is set ,which

Sales Promotions are short-term incentives to encourage sales of a product or service to

persuade members of a target market to respond or undertake certain activity. Promotions

include samples, rebates, contests, demonstrations and coupons, As a reward, marketers offer

something of value to those responding generally in the form of lower cost of ownership for a

purchased product (e.g., lower purchase price, money back) or the inclusion of additional

value-added material (e.g., something more for the same price).Sales promotions are often

confused with advertising Trade promotions which are an excellent means to show

your product, meet new buyers, learn more about the competition, and monitor changes in

your industry. (Cutlip , 2006)

Publicity/Public Relations - Harlow (1976) defines public relations (PR) practice as the

distinctive management function which helps establish and maintain mutual lines of

communications, understanding, acceptance and cooperation between an organisation and its

publics. Other than managing problems or issues, PR helps management to be informed and

responsive to public opinion and could help to dramatize a company or a product. In order to

do so, PR uses tactical communication activities research as its principal utensils; however,

most publicity is gleaned through news releases, feature stories and editorial comments. To

obtain this exposure for your business, it can be helpful to research effective

campaigns/events of others in a related industry (Keegan, 1979).

Personal Selling is one of the oldest forms of promotion. It involves the use of a sales force to support a push strategy or a pull strategy and this type of promotion involves a direct, face-

to-face relationship with the customer, explaining the product or service, in an attempt to

persuade the customer to buy. The steps of personal selling required varies from product to

product and is particularly applicable when the will allow the desired sales level to be met.

A.C.3.5. Analyze the additional elements of the extended marketing mix.

Booms and Bitner(2003), suggested 3 additional Ps to the traditional marketing mix, to

ensure service marketing receives the attention it deserve.

People - An extremely important part of any company is having the right people to support

the companys products and/or service and those could be sales reps, customer services

maintenance and after sale care. Excellent customer service personnel who can provide

support with clearly known expectations, such as hours of operation and average response



time, is key to maintaining a high level of customer satisfaction. For example: banking sector

where customers comes into direct contact with the employees. Therefore these employees

need to be properly selected and trained. Knowledge able staff adds much value to the

product offering (Lindley, 2007).

Process - Solid procedures and policies that are in place, which pertains to the companys

products and/or service, is an extremely valuable element to the marketing strategy.

Customers usually want to understand more than just your product; they also want to focus

on the shape and form your business will take, as they can only see the quality of the service

being provided to him and the surrounding environment, and not the process involved in

delivering the services.

Physical evidence/packaging - This refers to the way your product, service, and everything

about your company, appears from the outside. Decisions need to be made about the size,

shape, color, material, UPC barcode, and label of the packaging. This should be customer

tested and updated when needed. It should fall in line with your other product offerings as

well. Packaging also involves the visual layout, practical setup, and when needed for

products, clear and precise installation instructions. Product liability insurance is needed in

case anyone suffers any harm from your product. Engineering tests are also needed to make

sure the package can stand up to abuses. For example: DHL courier service have the feature

of speed, delivers to any corner in the world in 24h, gives confident identity image of the firm

and also differentiates their service from the other courier service provider(Pettit,2007).

A.C.4.1. Plan marketing mix for two different segments in consumer markets

A business needs to create a successful mix when marketing its products. The marketing mix

should include:

Promotion- this consists of its visual appearance, including packaging and how well it works.

Price - this price must be set at the right level to suit the segment of the market it is aimed

at, but it also must be able to compete with its competitors.

Promotion this should be done in such a way so that is target market is aware of its

existence and form where it is available from.

Place the product needs to be in the right place at the right time, where customers can see



and access easily. It should be in a place that the customer will expect to find it (Hooley,

1998).

By implementing the marketing mix successfully a business can have sometimes a product

that fits into the marketing mix, but for two different segments of the market.

Bellow is a table showing an example of this for Johnsons Wipes, which are the same

product, but they are marked at two different segments, one is for babies the other for ladies

faces.

Headings Baby wipes Face wipesProduct Wipes are larger

Packaging has a picture of a

baby on it and is very

colorful

List all the benefits to babies

skin and eyes

Wipes are smaller

Packaging has a picture of a

lady on it and is plain in

coloring

Lists the benefits and uses to

a womans face

Price 1.85 for 64 wipes 2.20 for 25 wipesPromotion Leaflets inside other baby

products

Free sample in baby bounty

packs

Adverts on baby magazine or

TV during the day and on

childrens channels or

between womens programs

Beauty magazines

Evening TV adverts

Free samples with baby

wipes and in magazines

Place Chemists and supermarkets

within baby

departments/aisles

Baby shops

Often found next to nappies

Chemist and supermarkets in

beauty/hygiene

departments/aisles

Next to other beauty/hygiene

products.

Table1. Author

AC 4.2 Illustrate differences in marketing products and services to business rather than

consumers.



Business marketing is the observe of marketing the products or services to the different

companies, to resell the products or services, use the products in combination with their own

used products in their business process and to facilitate the operations of their enterprises.

Consumer marketing is marketing directed toward the consumer, or the individual end their

users. The basics of both the types of marketing are basically the same, but the issues faced

can be different and all marketers select target markets and base their marketing decisions,

such as type of promotion, price and distribution based on those target markets. But the

nature of business purchase is influenced by several professional buyers, decision makers

(Kotler, 2008).

Business marketing vs. consumer marketing

While on the surface the differences between business and consumer marketing may seem

obvious is more subtle distinctions between the two with substantial ramifications. Dwyer

and Tanner (2006) note that business marketing generally entails shorter and more direct

channels of distribution. While consumer marketing is meant at large groups through mass

retailers and media, the negotiation process between the buyer and seller is more personal in

business marketing. According to Hutt and Speh (2004), most business marketers commit

only a small part of their promotional budgets to advertising, and that is usually through

direct maill efforts and trade journals. Though that advertising is limited, it frequently helps

the business marketer set up successful sales calls. Marketing to a business trying to make a

profit (business-to-business marketing) as opposed to an individual for personal use

(Business-to-Consumer or B2C marketing) is similar in terms of the fundamental principles

of marketing. InB2C,B2BandB2G marketing situations, the marketer must always:

effectively identify the product or service strengths with the needs of a definable target

market;

price and position to arrange in a line with the product or service and its market, often an

complex balance

communicate and sell it in the fashion that demonstrates its value effectively to the target

market and the potential for one(Oliver,1995).

A.C.4.3 Show how and why international marketing differs from domestic marketing.



International Marketing can be defined as exchange of goods and services between different

national markets involving buyers and sellers. According to the American Marketing

Association, International Marketing is the multi-national process of planning and executing

the conception, prices, promotion and distribution of ideal goods and services to create

exchanges that satisfy the individual and organizational objectives.

Domestic Marketing: Domestic Marketing is concerned with marketing practices within the

marketers home country(Gronroos,2007).

Difference between International and Domestic Marketing

International market Domestic marketMeaning It refers to those activities

which results into transfers of

goods and services from one

country to another.

It refers to those activities

which results into transfers of

goods and services inside the

country itselfBarriers International trade is

characteristics by tariff and

non tariff barriers

Domestic marketing has no

such restrictions.

Currencies It involves exchange on the

basis of different currencies

and different rates

It involves exchange in the

basis of same currencies, so

no exchange rate problemsGovernment Need to research law and

regulations

Documentation that is

required may not be so easily

obtained.

Aware of law and regulations

Government in interference

is zero or minimum only

incase of essential

commodities.

Culture Trade should be done taking

diverse into consideration.

Even things like colour

combination can be affect the

trade marketing.

Culture does not affect in

domestic marketing

Mode of Payment Letter of credit is normally as

mode of payment

.Cash, Cheques, DDs are the

most commonMobility of Factors of

Production

Factors of Production are

relatively immobile as

Domestic Trade enjoys

greater mobility in factors of



compared to domestic

marketing

production

Competition International Trade is subject

to intense competition

Competition is not as intense

as it is in international

marketingRisk .International Marketing is

subject to high risk. Political,

foreign exchange risk, bad

debt risk are few of them.

Domestic Marketing is also subject to risk but not as highas international marketing.

Table 2. Author

Bibliography

Baker M. The Marketing Book, 5th Edition - 2003

Brassington F and Pettitt S Essentials of Marketing 2nd Edition (FT/PrenticeHall, 2007)



David Jobber, Principles and Practice of Marketing, 5th edition, McGraw HillCompanies,

London 2007.

Doyle P, 2002 Marketing management and Strategy , 3rd edition, Prentice Hall London

Floyd L.V. Marketing: Functions, Mediums, Practices, Variations and Appraisal -1942

Gronroos C.- Service Management and Marketing: Customer Management In Service

Competition , 3rd Edition, 2007

Hooley, G. J., Saunders, J. A. and Piercy, N.F., 1998. Marketing Strategy -1942and

Competitive positioning. 2nded. London

Keegan W J, 1989, Global Marketing Management, Prentice Hall, New Jersey

King, J.B (2005) The Top 10 Reasons Business Succeed Ezine Articles

Kotler, P. and Armstrong, G. (1997) Marketing An Introduction. Fourth Edition. New Jersey.

Prentince Hall International

Kotler, P., Armstrong, G., Saunders, J. and Wong, V. (1999) Principles of Marketing, 2nd

Edition, New Jersey: Prentice Hall

Michael D. Hutt, Thomas W. Speh- Industrial Marketing Management -1981

Macmillan Doyle, 2001. Marketing Management and Strategy. 3rded. London

Mintzberg H, Business and Economic, Pearson Edition-2009

M. J., 2000. Marketing Strategy and Management. 3rdEd.Basing

Gordon Oliver- Marketing Today, Prentice Hall PTR-1995

Pettit S. Principles of marketing, 3rd edition(FT/Prentice Hall, 2003).

Tony Lindley, Marketing Management, Bradford Study Guide, Dubai, U.A.E. 2007 Vinod

A, 2004. Marketing Management. Calicut University

Websites

http://marketingteacher.com/lesson-store/lesson-marketing-mix.html



www.managementfunda.com

www.tatamotors.com/our_world/profile.php

www.businessteacher.org.uk/market-segmentation

Journals

Journal of Marketing Education (Spring 1997).

Journal of Database Marketing and Customer Strategy Management 2001


Date post:	06-Mar-2016
Category:	Documents
Upload:	zeeshan-khan
View:	114 times
Download:	0 times

Marketing Principles

Documents