Marketing Principles (11430)

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Marketing Principles

and Techniques

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Contents
TASK-1............................................................................................................................................1

1.0 Introduction................................................................................................................................1

1.1 Purpose...................................................................................................................................1

1.2 Organization...........................................................................................................................2

2.0 Activities of Marketing Department..........................................................................................2

3.0 Marketing Segmentation as a Tool............................................................................................3

4.0 Marketing Mix and Its Application...........................................................................................3

TASK-2............................................................................................................................................4

5.0 Aims of Research and Market Analysis....................................................................................4

6.0 Market Research Methods.........................................................................................................5

7.0 Market Analysis Tools..............................................................................................................6

TASK-3............................................................................................................................................7

8.0 E-marketing...............................................................................................................................7

9.0 How companies use E-Marketing..............................................................................................8

10.0 E-Marketing in VaynerMedia..................................................................................................9

TASK-4..........................................................................................................................................11

11.0 Market Analysis:....................................................................................................................11

11.1 Porter’s Five Forces Analysis............................................................................................11

12.0 Market Research and Market Analysis..................................................................................12

13.0 Conclusion.............................................................................................................................15

Reference.......................................................................................................................................16

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TASK-1

1.0 Introduction
1.1 Purpose

Here at Coulsdon, Benstead, UK no Quality bakeries that offer confectionery items exist
currently. This leaves an opportunity to establish Bridgeburg Bakery. So, here we can provide
our service to 40,000 potential customers nearby. For this purpose, the business has been
established.

1.2 Organization

Bridgeburg Bakery is looking forward to grabbing the opportunity in the low competitive market
environment. It is serving the customer for a year. It sells cupcake, cake and pies in Coulsdon,
Benstead, UK. Now it wants to popularize its name to potential customers and later it wants to
expand its business by going out of its present business territory. They will also add pastry and
sweets to their product line.

2.0 Activities of Marketing Department


Marketing is the action or business of promoting and selling products or services, including
market research and advertising. (Chen & Lin 2019) There are several marketing activities
among them Marketing research, market segmentation, targeting and positioning are prime.

 Market research: Research is a way to collect data to find out customers need,
wants and demand through analysis. (Chen & Lin 2019) For example, Coca-Cola
collects information feedback from customers to improve their tastes and
launching a new type of cola.
 Segmenting: The marketing department also needs to determine what types of
potential customer segments exist in the market and what number of segments are
they going to serve. (Chen & Lin 2019) For instance, Samsung segments their
smartphones offering by segmenting customer based on income.

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 Targeting: Generally, a business does not offer a single product to everyone. They
target the market they can serve or want to serve. (Chen & Lin 2019) For
example, Apple targets mostly the upper-middle to the upper class of the society.
 Positioning: Brand management is a very important task of a marketing
department. For that, the marketing team has to manage customer to remember
the brand as special for a specific purpose. (Chen & Lin 2019) And they had to
take a position on the market. For example, the word “Google” is now used for
the alternative of search.

3.0 Marketing Segmentation as a Tool


Segmenting is a specification of targets. Generally, society is huge. We can’t approach or
advertise every person in the world. Therefore, we need to take a specific audience to offer. For
this reason, segmentation is a great tool to make our offering specific and effective. Among
various types of segmentation, Demographic, Geographic, behavioural and Psychological
segmentation are considered as prime. (Camilleri 2018)

 Demographic Segmentation: Depending on factors like age, gender, family size,


family lifestyle, generation, income, education, and occupation of people for the
sake of segmentation is known as demographic segmentation. Smartphone
Companies segments their market by income.
 Geographic Segmentation: When the demand of potential customers is segmented
by region, area size, population density, climate, etc. is known as geographic
segmentation. Xiaomi segments their customer as in china and outside china.
(Camilleri 2018)
 Behavioural segmentation: If the market can be segmented by customer’s
benefits, usage rate, brand loyalty, occasion, purchase behaviour then it is
determined as behavioural segmentation. Increasing supply on a special occasion
is one kind of behavioural segmentation (Camilleri 2018).

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4.0 Marketing Mix and Its Application
The marketing mix is the strategy of arrangement of precise products, a particular place, at a
specific time and an affordable price (Blut et al., 2018)

0. For goods it is 4ps and for services it is 7ps.

 Product: Product is what a business offers to satisfy the customers need. Here the
organization decides how the customers will use it to meet the need, where they
will use it and what will be the name of the product. For example, Bridgeburg
Bakery offers cake and cupcake to meet the hunger of its customers. (Blut et al.,
2018)
 Price: Price is the amount of money customer need to pay to avail the product.
Bridgeburg Bakery set a price for its different versions of cupcakes and cakes
after estimating demand, supply and customer satisfaction.
 Place: Place signifies the territory where the product is available. It is a
distribution system. Bridgeburg Bakery sells cakes and cupcakes in Coulsdon lane
and nearby areas to serve their customer. (Blut et al., 2018)
 Promotion: Promotion is the way to boosts sales and reminding the potential
customers about the brand name of the organizations. It includes Coupons,
Discount, Increasing the product amount at the same price and advertising.

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TASK-2

5.0 Aims of Research and Market Analysis


The aims for research and market analysis are to understand the market better and serving
customer in a more efficient manner and overall increment of customer satisfaction. There are
several reasons for market analysis. (Camilleri 2018) Primary reasons are to know about: -

 Opportunities and threats: This information is significant for the decisions of an


organization. Through this, an organization takes various decision to keep the
company vivid in the market. (Camilleri 2018)
 Market growth: market growth indicates the future of the business. For this
reason, organizations want to know this frequently.
 Market Gaps: Market gaps are the new opportunities for a firm. Market gaps aka
niches can always help an organization to grab the unserved market. (Camilleri
2018)
 Butterfly customers; By knowing this a business can give more priority to
customers who are giving them the most profits.
 Consumer response: When an organization tries to get noticed by its potential
customers, they might want to know consumer response. Sometimes they may
want to know this after giving them some sample of products. (Camilleri 2018)
 Promotional effect: Sometimes, through research, the organizations might want to
know whether the promotion was effective.

6.0 Market Research Methods


The primary research method includes researching the field, whereas Secondary research
methods are about researching desk using others research materials.

Primary research; Primary research methods can be conducted by formulating the questionnaire
and then make them organized and then through them to the target audience to fill up. Another
technique to conduct such research is to conduct an interview asking questions from a non-biased
stand to get the real data from the audience. (Primary Research« Guide 2 Research, 2021) The

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descriptive statistics will provide information about what customers like nowadays and what type
of need the wants to satisfy. (Primary Research« Guide 2 Research, 2021) Primary research is
the best to have to customize the research for the dedicated decision or company. Some research
techniques are:

 Interviews
 Questionnaire
 Observation

Secondary research: Secondary research refers to doing research that was conducted by others
and now using them for a specific company or decision making. (Primary Research« Guide 2
Research, 2021) Secondary research is not always useful because research conducted by others
may contain some biased information that works out to some results that’s not 100% true. So,
that’s why secondary research has some trust issues. Some sources of secondary research may
be,

 Newspaper
 Documentary
 Journal
 Published research paper
 Similar industry analysis

Primary research through Questionnaire and Interviews are suitable for our business. Asking
consumers about what they want is very easy to conduct and find out. (Primary Research« Guide 2
Research, 2021) Yeah, sometimes consumers don’t know what they want but it is possible to know
after asking some specific questions. It is also possible to know about their thoughts and ideas by
asking them about the product specifications.

7.0 Market Analysis Tools


Tools for market analysis is to use for understanding the market in a better way. The tools used
for this research is given below.

 SWOT analysis

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 PESTLE analysis
 Porters Five forces Model

Swot analysis is a tool where a researcher can know some specific ability of an organization
from internal and external factors. (Helms & Nixon 2010)

A researcher knows Strength and weakness internally and Opportunity and threats externally.
After the analysis, a company try to remove their weakness and try to avoid threats (Helms &
Nixon 2010).

PESTLE analysis is used to get an insight into the macro-environment. PESTLE stands for
Political, Economic, Social, Technological, Environmental and Legal factors of an organization’s
macro environment. (Zalegera et al., 2014) Under these factors, there are some specific matters
to consider. This is a very popular and useful analysis to go with. (Zalegera et al., 2014)

Porters five forces model considers five forces. These are Competitive rivalry, Supplier power
Buyer power, Threat of new entrants, the threat of substitution. (Grigore, 2014) This framework
is mainly used for analyzing a company's competitive environment. It also can be used to guide
business strategy to increase competitive advantage.

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TASK-3

8.0 E-marketing
E-marketing is a protocol of planning, execution, promotion, distribution, pricing of goods and
services in a digital, networked environment. This revolutionary approach can connect more
consumers to the business and has brought major improvement utility to both consumers and
organizations (Noorbehbahani et al., 2019). Some methods of E-marketing are discussed below:

 Social Media Marketing: Social media platforms such as Facebook, Instagram, Twitter
are well visited and these create the opportunity for visitors to acknowledge desired
contents either through paid or organic media (Noorbehbahani et al., 2019).
 Search Engine Optimization (SEO): Optimizing Websites and contents within to improve
ranking in search engine results is the core function of this method (Labanauskaitė,
2020).
 Content Marketing: The content consists of many materials from blogs, posts, videos,
podcasts, emails to industry reports, and studies. (Noorbehbahani et al., 2019).
 Affiliated Marketing: Modern-day online referral marketing is now called affiliated
marketing. This approach is helping internet marketers and influencers earn money in
terms of commission for the traffic or sales they generate. These programs created by
businesses allow people to make money from other businesses, individuals, or websites
(Noorbehbahani et al., 2019).
 Influencer Marketing People follow their idols and take their word to heart. Those “Idols”
can also be termed influencers. Nowadays, influencers can be categorized by their huge
amount of online followers. Influencer marketing means working with influencers to
promote associated products/services to online followers (Labanauskaitė, 2020).

9.0 How companies use E-Marketing


Different Companies manage their online appearance in different ways. Some companies choose
to heavily market their products and others don’t focus on them at all. (Kannan, 2017). Most of
the companies push their product/services through advertisements, informatics, and impressions
on the news feed of social media giants. Other than that, Search Engine Optimization is the next

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most important approach taken by companies (Labanauskaitė, 2020). Emails or messages sent
consist has videos, infographics, texts and many other forms of informational pieces
(Labanauskaitė, 2020). Content marketing is a powerful way of putting up a decent public image.
Content marketing also consists of videos, blogs, reports, etc on the business website and
different other websites. Many companies collaborate with influencers and work together for
effective marketing (Kannan, 2017).

Figure 1 Approval rating of Different Marketing Method by Organizations


Source: Grigore (2014)

10.0 E-Marketing in VaynerMedia


The company’s front face, CEO Gary Vaynerchuk, is consistently spreading the good intentions
of VaynerMedia both online and offline. VaynerMedia is pushing its services through
advertisements, informatics, and impressions on the news feed of social media giants
(Noorbehbahani et al., 2019). As his company is based on providing Digital Marketing services,
this man knows how to stay on top of the marketing branch. The contents his organization
markets to the public are very positive and motivational (Kannan, 2017). Frequent blogs,

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informatics, and images on the internet from the business knead into the mind of people. Many
people who have used the services of VaynerMedia and turned out to be successful share their
story associated with them. VaynerMedia balances itself with quality content produced from
thorough market research, which brings them the maximum utility when presenting themselves
in the digital world (Kannan, 2017).

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TASK-4

11.0 Market Analysis:


Our small business produces only one product. The cakes produced are of many flavors and
varieties but it is still considered as a whole product. Our business has faced steady growth in the
last few months but has faced difficulties in the market (Ilin et al., 2017).

11.1 Porter’s Five Forces Analysis

Figure 2 Components of Porter's Five Forces Analysis


Source: Grigore (2014)

In this industry, the rivalry is somewhat intense. However, they may have an advantage in prices
and distribution, our product is superior in quality and consistency (Bruijl, 2018). When it comes
to supplier power, we are in a very comfortable position as our suppliers are loyal to us.
Switching to other suppliers will have no cost (Ilin et al., 2017). The buyers are not centralized in
this market. Their order size is medium but there are many buyers. This gives them high power
as they are strong enough to dictate terms to us and they will inquire no cost if they switch from
our product (Kawira, 2017). This product of food can be easily substituted. There are many types
of bakery products other than cake, which are also cheap. This proves to weaken the market
position (Kawira, 2017). A new entry is relatively easy here. The cost of entry depends on the
volume of production, but the smallest unit of production is cheap (Bruijl, 2018).

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12.0 Market Research and Market Analysis
Secondary Research conduction was conducted on some websites. In the UK, an average person
bought about 151 grams of cakes, buns, and pastry per week in 2019. In the year 2006, it was
165 grams. So it can be seen that consumption didn’t change very much in the past few years
(Cakes, buns, and pastries: Weekly UK consumption 2018/19 | Statista, 2021).

Figure 3 Average purchase in grams per person per week


Source: Grigore (2014)

In the UK, an average person spends about 78 pence per week in 2019. In the year 2006, it was
60 pence indicating little change over time. (Cakes, buns and pastries: UK household
expenditure 2018 | Statista, 2021).

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Figure 4 Pence spent on average on cakes, pastries, buns
Source: Grigore (2014)

The primary research was conducted by a survey. This survey only contained a simple
questionnaire (Dodds & Hess, 2020).

The objective of this research was to understand how consumers behave depending on
demography and preferences (Mooi et al., 2018).

For this research, we took a sample of 7 people. Though this sample is small, this was beneficial
for understanding samples deeply (Dodds & Hess, 2020).

This research has been conducted on all types of people to see what changes in consumption
occur in different stages or situations of different people (Basias & Pollalis, 2018).

The Following questions have been asked:

1) In a celebratory event, would you bring cakes to it?

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a) Yes

b) Likely

c) No

2) When would you have cake more likely?

a) Breakfast

b) Celebration

c) With friends

3) What is the most important aspect of a cake?

a) Flavor

b) Texture

c) Organic ingredient

d) Price

4) What is your gender?

a) Male

b) Female

c) Prefer not to say

5) What is your age?

a) 14 below

b) 14-20

c) 21-35

d) 36-50

e) 50+

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It has been observed that most people enjoy cake irrespective of age and gender. In times of
celebration, good news, people tend to consume cake. The most interesting finding is that
consumers will purchase slightly expensive cakes for their quality and texture. (Mooi et al.,
2018).

Our recommendation to the marketing team should focus on advertising qualitative features of
the product irrespective of gender and age. They should market it as a product of celebration and
joy. The medium of marketing should be both offline and online (Fisher & Kordupleski, 2019).

13.0 Conclusion
Business requires information. In current times, this need for information is highest. The
business, which has the highest bit of authentic, relevant information, is the one with a higher
growth rate. Researching for such data will meet this need (Dodds & Hess, 2020). Marketing
makes it possible to utilize this accumulated data, which would push the company in the right
way into the mind of the consumer. The cake industry is prevalent in the UK. Bridgeburg Bakery
has collected valuable data and found how it should function in the marketing operations stated
in the report. This process of collecting data and analysis is continuous. It should adapt its
methodology, application, and product with time and need (Mooi et al., 2018).

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Reference
Basias, N. and Pollalis, Y., 2018. Quantitative and qualitative research in business & technology:
Justifying a suitable research methodology. Review of Integrative Business and
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Blut, M., Teller, C. and Floh, A., 2018. Testing retail marketing-mix effects on patronage: A
meta- analysis. Journal of Retailing, 94(2), pp.113-135

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Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
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VaynerMedia.com – A full service digital agency built for the now. We drive business outcomes
via best in class creative, media, influencer marketing & everything in between., 2021

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