Marketing Principles Free Essays

Marketing describes –product, good services and customers. Marketing all aboutidentify customer need and satisfying customer with products and make profit. In Mr Tan’swords [22/4/13] â€Å"marketing is mutually satisfying exchange at profit in the long term†. We will write a custom essay sample on Marketing Principles or any similar topic only for you Order Now Marketing isthe built-up relationship and created customer delight, capture value from customer to create profit and customer quality. Marketing process identify customer need, situation analysis and marketing strategy decisions about product prise distribution and promotion and then how this is implemented monitored and controlled. A. Situation Analysis:- In a situation analysis a company need to understand customer need and carefully think about company resources and capability in which it is operating. Some point can be used for situation analysis -5c, Pest analysis, Swot analysis. a) 5c:- 5c presentcompany, customers, completions collaborations and climate. Company present internal situations, sources, availability and options. Customer, compitions, collaborations climate are external situation. For example tescowas tea but when they analysis customer need then tesco start adding brand and products in their business. In other example, Tesco analysis customer by rewarding club card points, in this way tesco gathering all information about customer need, interest, and product and spending. b) PEST Analysis:- Political, economic, socitical and technological factors come pest analysis. Day by day customer need is changing, because of change economy society and change of interest. After second war Jack tesco funder launched a food rationing to make sure everyone received an equal amount if food[political, economic] Now England is multicultural country so tesco selling so many ethnic products to serve different community [societal]. Tesco add electrical product intesco market according to customers need. [technology] c) SWOT Analysis:- Strength, weakness, opportunity and threats is in swot analysis. For example strength- tesco was the only one and one only retailers and had no competitors. Opportunities-Tesco has 50 branches and soon 1939 have doubled branches. Weakness and threats- after opening 150 stores tesco business was going down because of internal weakness. Then mr Jack son-in-law came and manage all business. B. Marketing Strategy:- Marketing strategy that combines all its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from good marketing research and focused on the right product mix in order to achievethe maximumprofit potential and grow the business. The marketing strategy is the foundation of a marketing plan, this includes- segmentation targeting, positioning the product within the target market. C. Marketing mix decisions:- After marketing making market strategy Tesco take decisions about marketing mix. Marketing mix includes 4 basic things which are known as 4 ps, they are following as: * Product: – Tesco identify and design their product. * Price: – Tesco fix the prices for their products. * Place: – Tesco identify a specific area in which they will introduce their product. * Promotion:- Tesco make advertising campaigns to advertise their products by using different mediums of advertisement such as electronic media, print media. D. Implementation and Control:- After situation analysis, marketing strategy, marketing mix decisions Tesco launched their product in market. They implement their all strategies on product and also on target market. They control and monitor their products such as is their product fulfils the customer needs and wants. POSITIONING positioning helps establish product or services to identify within the eyes of the customers. A company positioning strategy is related to customers’ motivation and requirements, as well as by its competitors. Tesco express store mainly in high street to target working people who have less time for shopping VALUE PROPOSITION TO THE TARGET MARKET A value roposition is a promise of value to be delivered and a believe from the customer that value will be experienced. 2. 2 MARKETING MIX DECISIONS Marketing mix dicision is mixture of product, pricing, distribution and promotion, and make decisions and policies to maximise profit and minimise cost. Product development –product is the physical product or services which is company offer to consumers. product development include appearance, pa ckaging, warranty etc. Tesco adding and changing products according to customer need. Prise-prising decisions is important in marketing mix decisions,company have to consider product production cost , advertising,prising response of competitors and margin Distribution contracts- the distribution system performs transactional, logical and facilitating functions. Distribution contract help to company to put the products in market Promotion – promotion decisions are communicating and selling the products in market. Promotions decision involve advertising, public relation media type ect. 2. IMPLEMENTION AND CONTROL Implementation is a type of feedback, inimplementationmonitor all business activities and identify problem and shortfall in business. As the market change the marketing mix can be adjusted to accommodate the changes and can control on business. Often Small changes in consumer wants can addressed by changing the advertising massage, if the change become more significant, a product re-design or entirely new product may be needed. In Tesco for example horse meat was found in beef burgers and other products, Tesco removed all products containing horse meat and apologised to all their customers. How to cite Marketing Principles, Papers Marketing Principles Free Essays 1.   Vitamins segmentation can be done under two factors of demographic segmentation: age and life-cycle stage and gender. For example: many companies have vitamins for kids that taste fruity and come in an assortment of colors compared to the vitamins for adults. We will write a custom essay sample on Marketing Principles or any similar topic only for you Order Now Vitamins are also different for men and women. When we take credit cards into consideration, although consumer segmentation is important, segmenting business markets is quite important too. Customers may already carry a certain credit card but they must also have an outlet to use that credit card. Henceforth, companies must maintain relationships with the merchants segment that already carry the cards and try to convince new ones to carry the card as well. The most important segmentation variable for coffee would be under behavioral segmentation. A large part of the American population drinks coffee; it’s a morning ritual for most. To do effectively segment the market, coffee companies such as Starbucks should asses the usage rate to see whether the consumer is a light, medium, or heavy product user. Heavy users are more likely to be loyal customers therefore the company should fulfill all their needs to keep them loyal. Light users should be the target of advertisements to bring them in and hopefully turn them in to loyal customers. 2. International markets can be segmented geographically, economically, politically and culturally. Companies can also use inter-market segmentation where the form â€Å"segments of consumers who have similar needs and buying behavior even though they are located in different countries.† (Kotler and Armstrong 207) This concept can be used to segment an ipod because the basic purpose is storing an enormous amount of music into a small portable device. It doesn’t matter what kind of music is stored in the ipod so all the barriers are broken. 3.   Question 1- What is the size of the population that can afford to purchase this product? Question2- Will the segments be reached through television advertisements? Question 3- Are we targeting the same segment that we’ve chosen for our already successful mega-whopper burger? Question 4- Or are we segmenting on a completely different basis? Question 5- Can we successfully promote our product to the particular segment? 4. You are product manager of a financial services product that is being sold directly to consumers over the Internet. The most important measure to the company is customer acquisition cost – the cost associated with convincing a consumer to buy the service. You have been conducting tests with both a concentrated and undifferentiated segmentation strategy, and the results are presented here. Which strategy is the best? Why? An undifferentiated segmentation strategy is best because the cost is already low since the customer is reached through the internet. The internet allows company’s to do a lot for a lot less and you can reach out to a large amount of people therefore having less costs and more customers. 5.   Microsoft’s Window XP Professional is a product. A service provides the company to make a direct face to face contact with a customer. The level of satisfaction can be predicted right away in providing a service. On the other hand, a product must be taken home and thoroughly used to find out if it fulfills all the needs and wants of a customer and whether the customer was delighted. When someone buys a laptop that has Windows XP Professional installed on it they can judge it after they have used it for a while and figure out whether it was fully satisfying or not. Core benefit- Like the Microsoft XP homepage tagline, the customer purchases the freedom to do what he/she wants at the office or at home. Actual Product- the box that the software comes in and the cd Augmented product- a warrantee and free repair service incase of virus damage, customer service for dealing with any difficulties encountered with the product 6. a laptop- shopping a surgeon- specialty automobile tires- convenience 7.   Line extensions- two-seater snowboard; large, small, or medium snowboard Brand extensions- from Johny’s snowboards to Johny’s golf clubs or Johny’s basketball gearMultibrands- Sonia’s snowboards for women New brands- Tommy’s luxury snow goods 8. Concept testing is very important because it tells about what the consumers think about your product. Ideas are generated into concepts which then serve the market. To make sure that they are successful in the market a concept test is necessary. Through a marketers eyes the innovative idea he came up with might be great but it has to work with that the publics wants and needs. To ensure that your product will not be a failure or have a fair idea that it will go towards the ladder of success and not incur a multimillion dollar loss to the company, concept testing is a must. 9.   I would not test market a necessity product, more specifically, an unbranded necessity product such as wheat, or rice, or perhaps tap water. Tap water has to be paid for, and it can even be a little branded. In some peoples opinions New York City’s tap water is way better than the chlorinated water of Houston but no one goes and does concept testing for this. 10. In the growth stage a company can have a dominant position by spending a lot on promotion and distribution and continuously improving their product. By doing this the firm gets a high market share, however, it has to give up short term profit. Therefore, to get a high market share, the company has to give a current high profit.   11. Product- the product is doing well but innovation is the key to success Price- price adjustments have to made according to situation Place- market share can be increased if the toys are placed in more stores Promotion- heavy promotion can be done during Christmas season 12. Cost based pricing is done by adding a standard markup to the cost of producing the product. Whereas, value based pricing can have a very high range because it’s based on the customer’s perception of the value of the product. Value based pricing can usually be done adding a few value added benefits and charging a high price for them. 13. Internal factors of pricing include marketing objectives, the marketing mix strategy, costs and organizational considerations. Depending on what Sony wants to accomplish through its MP3 player will dictate the price. If Sony wants to skim the market it’s going to charge a high price initially but if Sony wants to penetrate the market it will have lower prices initially. Also price decisions have to be coordinated with the whole picture. They must be in sync with the way the product is designed, the promotion and distribution. 14.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Break-Even Volume= Fixed cost/(Price –variable cost) Fixed cost= 3133 + 8560 + 2213 + 27653 + 1650 + 18386 + 1904 + 4855 + 3159 + 3960 = 76461 Price= 10.35 Assumed variable cost= 7 Break-Even Volume= 22824.179 15. Psychological factors play a huge rule in the way a consumer responds to purchasing a product. Companies often use this tactic to psychologically motivate customers to purchase their product. For example, instead of pricing a product $100, the company might price it $99.99 or $99.98. People usually set targets for how much to spend when they are out shopping. If a person has made up his mind to not to spend $100 he might be psychologically motivated by an item that is priced at $99.99 and go ahead and make the purchase although its pretty much the same thing as spending $100. 16. Different countries face different economic conditions which affects the markets buying power. If an international company sets a uniform worldwide price for a commodity type product it may not make too many profits. Something that is sold for $5 dollars in the United States would translate to approximately Rs. 250 in India. If in Indian has Rs.250 he/she might not spend that money for the same thing the American would pay $5 dollars for. 17. Cingular offers lower prices for their plans compared to Sprint. For example, if Cingular charges 59.99 or 79.99 or 94.99 for 900 minutes, Sprint offers 89.99 for 900 minutes but offers unlimited for 99.99. Although Cingular might be giving better options for a lower price, Sprint prices strategically by offering unlimited in just a few dollars more. Both companies tactfully use psychological pricing. Works Cited â€Å"Family Cell Phone Plans.† ATT. 31 Mar 2008 https://www.att.com/shop/wireless/data-plans.html. â€Å"Individual Cell Phone Plans.† ATT. 31 Mar 2008 https://www.att.com/shop/wireless/plans/planconfigurator.html?tab=whpi. Kotler, Philip, and Gary Armstrong. Principles of Marketing. 11. Prentice Hall, 2001. Kotler, Phillip, and Kevin Keller. Marketing Management. 12. Prentice Hall, 2001. â€Å"Microsoft Windows XP professional.† Microsoft. 31 Mar 2008   https://support.microsoft.com/ru-ru/allproducts. â€Å"Services.† ATT. 31 Mar 2008 https://www.att.com/shop/wireless/features/featureslist.html. How to cite Marketing Principles, Essay examples