INTRODUCTION TO MARKETING PRINCIPLES
Marketing is the imperative way to promote products and services of organization that enables firm to increase overall rate of return and also increases overall productivity. Present report is about Waitrose that is chain of British supermarket. It ensures inclusion of different marketing strategies that aid to create competitive edge of firm in the marketplace (Waitrose, 2015). Further, various elements of marketing process and benefits of marketing orientation are explained. In addition to this, development of product is also analyzed by which firm can be able to increase number of shares and deliver good quality of services to large number of buyers.
1.1Various elements of marketing process
There are several elements of marketing process that contribute towards promoting and deliver products and services of Waitrose to ultimate buyers. These are as follows-
Analyzing market and environment- It is the first and foremost step of marketing process thereby management of Waitrose assesses internal as well as external marketing. It facilitates to know about strategies that are being adopted by other organizations like Tesco, Sainsbury and other retailers. Further, they can also be able to adopt appropriate strategy in relation to increasing number of buyers (Andersson and Servais, 2010).
Identifying the marketing target- It is the second step of marketing process in which marketing manager of Waitrose identifies target market where they actually want to sell their products and services. It enables them to identify potential buyers and plan accordingly for increasing sales turnover (Kokemuller, 2015).
Setting objectives of marketing- Here, marketing objectives are set such as increasing sales turnover, increasing number of buyers and becoming marketing leader. In the same direction firm can set SMART objectives that provides guideline for personnel to make effort to achieve the same (Aspelund, Madsen and Moen, 2007).
Defining elements of marketing mix- After setting objectives for marketing, the next step is of marketing mix. It enables marketing manager of Waitrose to set appropriate prices, make product available at convenient place for customers and promote the products with appropriate marketing tools.
Controlling and modifying- It is the last but very important stage of marketing process thereby management brings changes in the present process so as to fulfill objectives of the same. It facilitates to ensure optimum utilization of limited resources (Avlonitis and Indounas, 2006).
1.2Evaluating benefits of and cost of marketing orientation
Marketing orientation refers to combined efforts that are made in order to cater need of different types of buyers. It enables marketing manager of Waitrose to target potential market and also persuade buyers towards products and services provided. By the help of marketing orientation, Waitrose focuses on customer's need and preferences so that overall sales turnover can be increased. It facilitates to create competitive edge of firm in the marketplace. It is the means to sustain competitive advantage, for example, firm is facing decreased sales turnover for grocery department (Cao, Yong, and Thomas, 2005). Here, firm modify the product by studying the need of buyers so as to address their need in an effectual manner. Along with that, it assist firm to survive for long run with greater profitability by delivering good quality of services to large number of buyers. In addition to this, marketing orientation create superior image of the firm at the marketplace by creating value of customers. It facilitate to satisfy customers' need in most appropriate manner that leads to create brand image of Waitrose at the marketplace.
Marketing orientation requires high investment by which management can be able to increase attention of customers. Here, firm need to increase infrastructure cost by which it can deliver good quality of services to customers (Charles, 2007). Marketing orientation generate need for time for giving time training to workers that again increases overall cost of Waitrose. Further, due to changing need and preferences of customers demands changes for the prevailing products. It maximizes overall cost of production and firm has to incur additional cost on the same product.
2.1Developing products to sustain competitive advantage
The product development is the crucial process for the organization. In order to develop new product marketing manager of Waitrose study market in a precise manner. By the help of study, they come to know about taste and preferences o customers. They also gain knowledge about affordable prices and range of products, customers desire for. Further, organization keep record of personnel while provides them after sale services. It enables them to keep in touch with buyers so as to take feedback regarding existing products (Chung, 2007). It serves as source for developing new product that leads to deliver good quality of service to large number of buyers. Under this, firm need to develop its product in an effectual manner by which it can differentiate it with another competitors. Here cost should also be considered that aid to increase overall rate of return and offer product to customer at affordable prices. Along with that focus is given for strong positioning of product in the market that proves to be effective to increase number of buyers. On the other hand, management of organization invite customers for opening a new branch and launching of new products by which they can be connected by them emotionally.. It proves to be effective for building good relation with customers and firm so as to create distinctive image of firm in the marketplace. Further, test marketing as effective tools is used for successful development of product and gets the feedback of ultimate consumers (Ferrell and et. al., 2012). It facilitates to increase overall rate of return and increase sales turnover of company.
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2.2 Arranging distribution to provide customer convenience
Distribution is the important aspect for targeting potential market and increasing overall rate of return of organization. Management of Waitorse arrange distribution in very effective wayIsuch as selection of competent personnel, appropriate channel of distribution and effective strategy to deliver goods and services to ultimate buyers (Greenberg, 2010). For providing food, several wholesalers are appointed who serve to customer by opening their outlet at different geographical areas. Further, retail chain of Waitorse provides services on public place like shopping. It facilitate customers to quick access to products and services of firm and also enjoy time to time after sales services. Here, organization has three option available for the distribution such as intensive, selective and exclusive. In this, intensive distribution is suitable where customer have wide range of brands available and they can choose any one. Furthermore, selective distribution channel is that where firm have only limited outlets in order to focus on the same in an appropriate manner. In addition to this, exclusive distribution channel is also imperative wherein firm establishes only single whole seller or retailers in particular geographical areas. In the present report, Waitorise make use of selective distribution channel so as to reach at the utilate buyers and adress their need in an effectual manner. It facilitate to give them high er level of satisfaction that increase overall rate of return of company. Along with that, internet as the effective tool for online shopping is also adopted by company (Szwarc, 2005). It enables buyers to take quick purchase decision and also gives them cost benefits because they get their product at their home. It contribute towards achieving long as well as short term objectives of Waitorse and enables management to retain buyers for long span of time.
2.3Setting prices to reflect organization's objectives and market condition
Setting prices is the imperative task which assist organization to fulfill its long as well as short term objectives and make effort in the direction of its success. For this purpose, company adopts several types of strategies in order to gain attraction of consumers and increase overall rate of rate of return of firm. Firm offers range of products that enables management to set different pricing policies. Here, premium prices are charged for wine and other drinks as well as beauty products. On these products certain percentage of margin is fixed which enables firm to increase overall rate of return and expand business over the globe (Ward and Lewandowsko, 2008). Further, cost plus margin is also appropriate way to set prices for the products thereby management can be able to cover cost of grocery segment. In festival season, firm also charges skimming prices for the luxurious products so as to increase overall rate of return. It is the most suited for limited span of time by which organization can be able to recover the cost and also recover the losses (Yan, 2009). On the other hand, market-oriented pricing is also important that is being adopted by Waitorse. Here, all firms offer same prices of product ion the market in order to ensure fair competition in the market.
This pricing strategies reflect objectives of the organization because if firm want to maximize profit then it will adopt skimming pricing strategy. Here, management can be able to increase overall rate of return. It enables firm to fulfill its long as well as short term objectives. For example, if firm sets loss leader pricing then it reflects that corporation makes efforts to survive in the market. It assist firm to cater need of different types of buyers. It contribute towards creating competitive edge of the firm at the marketplace.
2.4Integration of promotional activities to achieve marketing objectives
The integration of promotional activities is the crucial task by which firm can be able to target its market potential. Promotional activities make use of advertising, personal selling, sales promotional and personal selling. Combination of all these tools contribute towards promoting good and services of firm at the marketplace (Kirca, Jayachandran and Bearden, 2005). Here, adverting is the best way by which customer are informed regarding new products as well as additional features that has been added to prevailing products. It facilitate to increase number of buyers and contribute towards increasing sales turnover of company. In order to place advertisement several types of strategies can be used such as internet, print media and social networking. With the help of social networking, Waitorse provides good amount of information regarding products so as to attract buyers towards the same. Further, it is the best way to give detail about special offer and discount by which dales turnover can be increased to a great extent. It facilitate to motivate customers to take quick buying decision (Kotler and Armstrong, 2005). Along with that, print media is also imperative thereby firm places advertisement in the magazines and newspapers. In addition to this, uploading videos on Youtube and highlighting features of product on television also lead to maximize sales and increase profitability of company.
2.5 Analyzing additional elements of the extended marketing mix
The marketing mix is the imperative way to manage all marketing activities of firm and enables management to make effort in relation creating goodwill of firm in the marketplace. Basically there are four elements of marketing mix in which three are added. These are people, process and physical evidence. Here, people are the important element that need to be considered while selecting distribution channel and selecting sales person for selling of products and services (Kotler and Sheth, 2011). These are the people who interact with customer and make effort for achieving sales target so as to achieve long as well as short term objectives of company. Further, physical evidence is the another marketing mix element by which organization make products available to customers at their convenient places. It facilitate to create goodwill of firm in the marketplace and give high level of satisfaction among buyers. The last element of marketing mix is process thereby several stages take place in contacting ultimate buyers and delivering services to them (Mack, 2015). It facilitate to increase productivity as well as profitability of company so as to expand business over the globe. It also enables organization to create distinctive image of firm.
3.1 Planning for marketing mix for two different segment in consumer market
Planning for marketing mix in different segment is the crucial part that requires active involvement of all managers such as marketing, finance and production. For example Waitrose is planning to develop its new combo pack of food that consists of three items for breakfast and want to provide services in new geographical area (Kotler, 2008). This product is segmented for middle level income group and all age people (Market segmentation criteria – Five essential criteria, 2014). It can be said that age and income group are two segment selected for the new product. Here, product is advertised via online or print media so as to raise awareness among large number of pubic. Prices for the product will be set affordable by which customers can easily purchase the product. Further, product is made available at public area such as nearby schools, industrial areas and malls etc (Lancaster and Massingham, 2010). These four marketing mix are planned for both segment such as all age people and those who have middle level of income. It facilitate to deliver good quality of services to large number of people and increase their attention towards the new product so as to achieve long as well as short term objectives of Waitrose. Furthermore, price and promotion are the two different marketing mixes that have been selected in consumer market. Under this, Waitrose set differentiation pricing that aid to cater need of different types of buyers. It facilitate to deliver good quality of services to customers so as to build goodwill of firm at the marketplace. In addition to this, promotional strategies that are being used by the firm is advertisement on print and digital media by making use of social networking. It contribute towards increasing sales turnover of firm to a great extent.
3.2Makreitng of products and services to business rather than consumer
Marketing of products an services is different from business and consumers. Here, company need to make different promotional strategy thereby they can easily deliver good quality of services to their client as well as buyers. For example, Waitrose uses several types of promotional strategy such as social media, television and newspapers. It facilitate to target large market potential and cater need of different types of buyers (Pitta and Scherr, 2009). On the other hand, for selling products and services on wholesalers, management of Waitorse won't promote the same. Here, transaction takes place on the basis of agreement where firm does not need extra effort for promoting products and services. Under this, formal relationship betweemn both clients take place in which it is not necessary to have emotional attachment unlike consumers. It is because business to business marketing does not require high promotion and emotional attachment like customer to customer marketing. Further, businesses purchase product for resale purpose where customer purchase for consumption. It facilitate to increase sales turnover of company that leads to create competitive edge of firm in the marketplace. Moreover, in business to business marketing firm sales products and service son the basis of agreement whereas the same does not exist among customers.
3.3 Difference between international marketing and domestic marketing
There is difference between international and domestic marketing because management of Waitrose need to make extra effort. It is because of changing external and internal environment generates need for different marketing effort (Pouder and Clark, 2009). Further, in domestic market people possess different set pattern of behavior and preferences related to products and services. In addition to this, Waitrose also need to study about competitors and their strategy and then plan accordingly so as to address need of customers in an effectual manner. Owing to this, management of firm need to incur additional cost and plan for marketing mix as per the environment of another country where firm intend to provide services as well as products (Tadajewski, 2012). Moreover, changing political and legal policies also impose several types of barrier for the corporation that need to be taken into account while planning for marketing strategy. Therefore,organization need to conduct proper research for several factors when enter into new market or marketing of services at international level (Wirtz, Tuzovic and Kuppelwieser, 2014). It facilitate to increase productivity as well profitability so as to expand business over the globe. Therefore, firm need to assess environment of internal market in an effectual manner so as to ensure optimum utilization of limited resources. It contribute towards achieving long as well as short term objectives firm so as to create competitive edge at the marketplace. In this regard firm have to bring improvement in its policies as well as structure so as to cope up with changing scenario.
From the report, it can be concluded that, segmentation is the imperative way to target large market potential and make effort in relation to increasing productivity of firm. Further, extended marketing mix prove to be effective for delivering good quality of services to large number of buyers. It can also be said that integration of promotional activities facilitate to create competitive edge of the firm in the marketplace. It leads to expand business over the globe and cater need of different types of customers.
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