Introduction to Marketing Principle
Marketing is the essence of any business. Without this, earning profits and revenues is not possible for a firm. Goodwill of an organization in the market is totally dependent on the activities taken by marketing department of it. Every company has its own marketing principles which it follows. It involves identifying and evaluating the emerging opportunities for business in the market. Through this, various strategies has been made in order to make the product successful (Satell, 2013).
In this report, there will a focus on marketing process and various models used by the organizations. The positive and negative aspects of marketing orientation will also be an area of focus (Morrison, 2014). For this purpose, the firm, Morrison has been taken which is one of the highest profits earning retail Company in UK. The concept of segmentation, targeting and positioning along with extended marketing mix is also going to be discussed here.
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1. CONCEPT OF THE PROCESS OF MARKETING
1.1 Marketing with its process and models
In Morrison, marketing is totally concerned about satisfying the needs of the customers by providing goods and services as per their needs and desires. This organization provides due concentration to it as it is just not mere about selling but more than that. In its marketing process, first the situation is being analyzed in which its external as well as internal environment is studied (Handlin, 2014). After that, by analyzing its areas in which it is having opportunities, various strategies are formulated. At the time of its formation, people at top management level sitstogether and plan about the things. Among number of alternatives, a right decision is being taken. Some other decisions are also made related to the marketing mix of the company. At last, the chosen strategy is implemented so as to get the desired results which were set earlier (Poolton, and et.al, 2006).
Morrison is using some well known models and analysis in its firm. The major ones which is commonly used in it is SWOT analysis and GS matrix. By using SWOT, organization assesses its strengths and weaknesses as well as identifies its threats and opportunities. It proves to be very helpful in making decisions for achieving the goalsof the firm (Chaffey, 2013). By the use of growth strategy matrix, four plans based on making growth in the company are market penetration and development as well as product development and diversification. When Morrison wants to develop its existing products by modifying them, it uses the market penetration strategy as well as sometimes product development is also used by adding some extra features into it. At the time when organization needs to capture new target market, it uses market development and diversification strategy (Lilien, Rangaswamy and Bruyn, 2013).
1.2 Four concepts to present a product
Morrison focuses mainly on four concepts at the time of presenting any product in to its customers. These are production, product, sales and marketing. For the production of any product, company keeps it in mind the quality of it so as to satisfy customers through this and can have the competitive advantage over others. In order to manufacture an item, a superior quality raw material is purchased from suppliers and then made it as per the expectations of the people (Ferrell and Hartline, 2012). Product is the second concept in which it is seen that it must be in that form which can attract customer towards it. The packaging of itemsmust be like which can catch the attention of the people towards it. Morrison has to focus on its sales too as if the products are not sold ; profit cannot be earned by the firm. To have enough revenues in an organization it is necessary so as to run operations. Marketing refers to satisfaction of target audience by providing goods and services to them as per their needs and desires (Femie, Femie and Moore, 2013). It is one of the main goals of this company.
The market orientation of this organization has many merits as well as demerits with it. Like, through this, company can provide more focus to its production by formulating and implementing concentrated strategies. This ultimately leads to increase in profits as well as high level of customer satisfaction will also be there. Along with all these benefits, there are some limitations too which Morrison has to face, that is, there will be a high increase in its costs and external influences on firms as well (Kokemuller, 2014).
2. CONCEPTS OF SEGMENTATION, TARGETTING AND POSITIONING
2.1 Segmentation of a product
For a product of Morrison, that is, packaged food items which it offers, market can be divided into two segments. One can be on the basis of demographic and other can be psychographic. According to demographic segmentation, company can target those people who are in between the age of twenty to thirty as it is assumed that people in this age are more health conscious then others. By selling this product in this segment, organization can earn high profits. Providing healthy food will prove to be very beneficial for the firm as it would also increase its goodwill (Marshment, 2009).
Another segment is on the basis of psychographic in which life style is being taken. Morrison can provide these products to working people who do not have much time to go and purchase vegetables from market. High profits can be earned through this segment as these customers would definitely buy it as it will save their time as well as it is good for health too (Dibb and Simkin, 2013).
2.2 Market coverage strategy for the target market
For the chosen product, Morrison can use concentration strategy for the packaged food items. In this, it can develop and market it for the selected segments that are the specific area from the consumer population (Prasad, 2010). Through this strategy, company can position its product without heavy advertising or mass distribution. However, if this strategy is being used, it is needed for the organization to do better then its competitors so as to prove itself different (Chua and Banerjee, 2013). For a particular brand and product, this plan proves to be very beneficial.
As the target market will be the office going people and customer in between the age of twenty to thirty years, this strategy will be used for them. A concentrated strategy is always for a small segment with a differentiated product. So by applying this to the company, target audience can be captured easily and it would also help in making profits from them (Chaharbaghi and Lynch, 2010).
2.3 Buyer behaviour and its affect on marketing activities
As per the selected segments by Morrison, the target audience is in between the age of 20 to 30 years as well as office going people, these customers generally do not have the time to go to the market and buy products. They normally used to do shopping on online basis as for them it is the most time saving and easiest way. Because of their hectic schedule, they prefer online shopping so that their work and shopping both can be done simultaneously (Rosenbloom and Dimitrova, 2011). This is the reason; Morrison has to provide this facility to them so as to make them stay with it. These services will make customer get engaged with company and also increases its goodwill. In spite of the fact that it will be profitable for organization, firm has to bear high cost for it. To have the competitive advantage, it is a right option so as to grab attention of existing as well as new target customers. It is necessary for the company to understand the buyer behavior if it wants to be in the market for a long duration (Rippin, 2007).
2.4 Positioning of the product
Morrison can adopt various measures so as to position its product in the minds of its target market. As the product is packaged food items, so the company can show it as a healthy and safe food which can be stored for more than two days without any damage to it. In order to do this, various promotional techniques can be used but advertising on national television as well as on online websites will prove to be the most beneficial (Breton and Martín, 2011). Morrison can earn huge profits by choosing this method to promote its product. In this, it can provide suitable message showing its features and also the differentiation from the products of competitors. Positioning the manufactured goods in a right way will easily capture the attention of people and make them purchase it. It is one of the very important task through which if it can attract people, it can even lose them also (Evans, 2010). That is why; proper consideration has to be given on this activity.
3. ABOUT 4 P's OF ORGANIZATION
3.1 Ansoff Matrix with development of a product
This is one of the method through which a product or market growth strategy can be made. In Morrison, it is commonly used to formulate plans so as to grow its business. In order to increase number of customers or market area, product development and diversification is used in which new products are developed as well as different features are put into it to bring innovation (Dziri, 2013). Sometimes even different characteristics of items which competitor's products are not having are also shown. For retaining the existing customers in a long run so as to make profits, penetration and development of market is used. Here existing products are being modified with some extra feature. It helps organization to sustain itself in highly competitive market (Belohlavek, 2008).
For this organization, the products which it is offering are its key to success. That is the reason, it gives due consideration to the processing of the operations which takes place in this company. Morrison can market kids and baby products which would be of superior quality as well as fair prices should be charged by customers for that. These products should be like if used by small children, no damage would occur to them, that , can be usable by any child (Garoufallou and et.al, 2013). To have the competitive advantage organization should provide these goods with excellent quality at lower prices than that of others. the packaging and design of the product must be in that way which can attract kids easily like bright colors should be used to capture their attention.
3.2 Importance of distribution of product
After the product is available to the stores, the next main task is to deliver them to ultimate customer. If it would not reach to the target market on time, the huge costs bear by the company would go waste. Morrison has various transport facilities with it in order to make products available on time at the right places. It is considered to be a very important task as when it will be with customers, then they would use that and then finally company is going to earn profits from them (Clarck, 2007).
3.3 Pricing strategies with justification
There are various types of pricing strategies which Morrison can use in order to cover its cost and earn profits. Competitive pricing is one of them in which prices are set by seeing the competitor's price. In cost based pricing, people are being charged in such a way that the cost of the production can be covered. Value pricing states the benefit to the customers. It is set in order to provide value to people for what they have spent (Bose, 2010).
In order to make kids and baby products a huge success, Morrison should fix its prices by adopting competitive pricing methods. As there so many competitors in the market, it is necessary for the firm to set their price so as to get competitive advantage that is lower than others with superior quality of items. Through this, organization can attract people towards it as well as earn high profits too (Boone and Kurtz, 2013).
3.4 Different promotional mix strategies
To promote this product and to increase its sale, Morrison can use advertising as the promotional tool as through this, it can grab a large market as well as it is a fast means of promotion too. This tool will help the organization to make people aware about products and its features as well as benefits in a very short period. In this, online advertising would play the most important role (Blythe, 2013). However, it has one major limitation, that is, it involves high cost with it. In spite of this fact, company should use it to make the product a great success.
4. ANALYSIS OF EXTENDED MARKETING MIX
4.1 Planning of extended marketing mix
There are three basic extended marketing mix identified that can be used by Morrison for its products such as kids and baby section.
People: Employees plays a very important role within an organization as with the help of it queries of the persons with respect to kids and baby related products can be solved out in an effective way (Handlin, 2014).
Process: An effective process must needs to be followed by an organization named as Morrison with an aim to handle the product related customers complaints in an effectual way.
Physical evidence: This showcases interior and exterior decoration of the company outlet that attracts customers towards goods and services (Chaffey, 2013).
The advertising plan for the kids and baby products of Morrison can be mainly done by the way of online methods of marketing. This can mainly include the updating of official sites of the company related to its products in the kids section. The advertising plan also consist of marketing the product with the help of social marketing sites and pop ups as well. The estimated budget for the entire advertising plan is according to the resources both financial and human that are available to Morrison (Kokemuller, 2014). The plan also consists of estimated time budget which is of 3 months for the implementation of the entire plan.
This marketing plan would be very profitable for the firm as through this Morrison can earn high profits. Online advertising will provide competitive advantage to it over other firms as through this, the target audience of the competitors can also be captured. It will be helpful in increasing the number of customers of the company (Prasad, 2010). To generate more revenues, company can give this advertisement on national television also as it would grab the attention of people at a very large scope.
From this report, it can be concluded that Morrison is earning high profits and goodwill in the market by its marketing activities. It gives due consideration to its growth strategies so as to expand its business in other markets too. All these plans are helping it to have competitive advantage over other firms by putting differentiation into it. Different models like SWOT and PESTEL makes the organization to stay in the market for a long duration with stability (Poolton and et.al, 2006).
You may also like to read:
- Belohlavek, P., 2008. Unicist Marketing Mix. Blue Eagle Group.
- Blythe, J., 2013. Principles and Practice of Marketing. SAGE publishes.
- Boone L., Kurtz, D., 2013. Contemporary marketing. Cengage learning publishes.
- Bose, D., 2010. MODERN MARKETING: PRINCIPLES AND PRACTICE. PHL learning pyt. Ltd. publishes.
- Breton, G. C. and Martín, M. O., 2011. International market selection and segmentation: a two-stage model. International Marketing Review.
- Chaharbaghi, K. and Lynch, R., 2010. Sustainable competitive advantage: towards a dynamic resource-based strategy. Management Decision.
- Chua, K. Y. A. and Banerjee, S., 2013. Customer knowledge management via social media: the case of Starbucks. Journal of Knowledge Management.
- Clarck, I., 2007. Handbook of Niche Marketing: Principles and Practice. Journal of Consumer Marketing.
- Dibb, S., Simkin, L., 2013. Market Segmentation Success: Making It Happen. Routledge publishes.
- Dziri, R., 2013. Avoiding Strategic Drifts in a Hypercompetitive Market. GRIN Verlag.
- Evans, L., 2010. Social Media Marketing: Strategies for Engaging in Facebook, Twitter & Other Social Media. Pearson Education.