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Unit 4 Marketing Principles Assignment Solution


In an organisation, there are many departments that have their own importance in the attainment of common goals and objectives of business. Among all, marketing department is one of them which play a key role in introducing new products and services in the market for target customers. Ultimate sales and profits of company depends on marketing activities done by this department (Kotler and Armstrong, 2010). In the present report, as per the given case, the firm, L’Oreal has been chosen with reference to which there will be study on understanding the concept and process of marketing along with segmentation, targeting and positioning. Apart from that, individual elements of extended marketing mix will be discussed as well as marketing mix in different contexts will be highlighted.   

Task 1


Marketing Head

L’Oreal, UK


It can be said that there are number of key elements that need to be referred by management of L’Oreal in order to have effective accomplishment of marketing process. It has been noticed that working of organization is greatly dependent over elements of marketing. Company has developed a well-managed market position within the market by creating valuable and quality products and services to its consumers. In addition to this, it can be said that business firm need to focus on situational analysis so that key aspects related to work environment can be analysed in appropriate manner (Lilien, Rangaswamy and Bruyn, 2013). By having assistance of analysis the impact on overall growth and development can be converted in positive manner. It will allow to evaluate the internal and external business environment. With an assistance of this, key gaps can be overcome lead business to impressive level of success. Along with this, marketing audit is also critical element which is being referred effectively from management of L’Oreal. It allows to understand the market conditions effectively so that goals and objectives can be accomplished. With an assistance of this, framing of strategies is also beneficial so that competitive advantage can be gained effectively (Payne and Pressley, 2013).

Development of plan is also critical task in which company focuses on the developing an effective plan to analyse the marketing needs and implement effective measures for the same. By having improved focus on such aspect, the level of working can be improved in appropriate manner. Along with this, formation of marketing strategies and their application is also critical to consider in appropriate manner (Aljukhadar and Senecal, 2011). In addition to this, monitoring of activities is also essential so that application of marketing activities can be taken into account.

According to in-depth analysis, marketing orientation is one of most critical aspect which may lead business firm to impressive level of success. Through application of marketing orientation number of benefits can be attained such as quality improvement in products and services. Along with this, customer loyalty can also be advanced in appropriate manner so that business firm can have better competitive edge in the market. Measures of orientation has helped the company in developing consumer retention as well (Breton and Martín, 2011). Constant improvement of products and services has helped the company in enhancing product range and quality as well. In addition to this, it can be said that cost of marketing orientation is high at the initial level which might impact the overall outcome in diverse manner. However, the cost of marketing orientation application after few time is controllable which provide long term benefits to the organization. It will also allow to make sure that resource allocation is appropriate so that goals and objectives can be accomplished effectively (Chaharbaghi and Lynch, 2010).


Junior Manager

Loral, UK

Also Read: Unit 3 Develop organisational marketing objectives Level 5 CBC College

Task 2


In this task, there will be discussion on the way in which micro and macro environment can influence marketing decisions of L’Oreal as well as on market segmentation principles. The segmentation criteria to L’Oreal will be highlighted with selecting a product from the range available for which an appropriate targeting strategy will be proposed. In addition to this, a new improved marketing positioning of product will be suggested here.

Marketing decisions of L’Oreal can be influenced by its micro and macro environment. Micro environment includes stakeholders like customers, suppliers, employees, government and investors. It is important to keep them happy and satisfied to run all business activities in a smooth manner. It is because; dissatisfaction of them may lead firm to face severe issues like delay in availability of raw material, reduced customer base, increased rate of employee turnover, obligations from the side of government, etc. On the other hand, macro environment includes external factors like political, economic, social and technological that can be evaluated through using PEST analysis (Ahmed, 2014). These factors influence the marketing decision of L’Oreal to a high extent as all strategies are needed to be formulated by keeping in mind the same. They play a crucial role in assessing the threats and opportunities for business.

Different segmentation criteria are there that L’Oreal can adopt for its range of products in different markets. As the firm is planning to launch its new product, that is, lotion for healthy skin, it can do demographic segmentation in which the basis on which market will be segmented is the age, income and sex. It is because; company is aiming to launch the product for females in between the age of 18 to 30 years who are more conscious about their skin and can spend a good amount on products which can protect their skin (Aljukhadar and Senecal, 2011). Another way of segmentation will be psychographic in which the basis will be social status of customers. As the product will be of high quality, it will be sold at high cost that a particular segment can only afford. Females who belong from high society will come under this segment who would not hesitate in spending money on buying this product.  

For the new launch, that is, lotion for healthy skin, L’Oreal will use concentrated (niche) and differentiated (segmented marketing) targeting. Under the concentrated targeting strategy, company will design a promotional message in which it will communicate the benefits that a particular segment desires. It is like; making people aware with the benefits of applying lotion on their skin by which all spots will be removed and skin will shine. On the other hand, differentiated targeting will help in designing more than one promotional message where each one will be communicating distinct advantages of using the product (Breton and Martín, 2011). Through this, attention of customers can be grabbed in a better way by L’Oreal as when they will see numerous benefits of the same, their decision tom purchase the product will become stronger. 

With the use of value positioning, L’Oreal will explain the reason because of which customers should purchase the product, that is, lotion for healthy skin. It will help the firm in convincing target customers to buy the product that will add more value and resolve their issue related to skin as compared to other offerings of competitor organisations. For the same, L’Oreal will use tool of digital advertising for promoting the product on social media and television. Through advertising on social media, company can grab the attention of large number of customers within a very short duration of time as well as at low cost (Chaharbaghi and Lynch, 2010). However, in comparison to social media, advertising on television would prove to be expensive. But, it will also render effective results as in today’s ear, everyone watches television. Thus, to make them aware about the product with showing its features and benefits, advertising on television would prove to be highly beneficial for the firm.   &n

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