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Practical example for need of study marketing.
Act of promoting and selling services or products in such a way that it involves customer needs is known as marketing. It is basically a process of executing and planning realization, promotion, distribution and pricing of services and goods to satisfy needs of customers and acquiring objectives of organization. Marketing ensures that delivered products are valuable to customers and organization (What is marketing. 2019). As per Peter F. Drucker, marketing aims at knowing and understanding customer in such a way that manufactured products meet their (customers) needs. According to Drucker to succeed in marketing one must be aware of customer like age, income, hobbies or any other detail which can intensify understanding of customers. When a product is build, it is must to understand needs and wants so that it can be sold easily.
To explain need of marketing an example can be considered, to escalate knowledge related with particular term (marketing). Apple Inc. can be taken to further understand this as they have successful marketing strategies (Ahmadzadeh, Eidi and Kagopour, 2017). Marketing team of Apple communicates and listens to customers, so that they can update and enhance their products as per feedback received from them. At beginning iPod was delivered by them which was used for music. Then customers looked forward for talking with friends who are at some or very far distance and want internet surfing. For this Apple designed iPhone to accomplish demands and desire of customers. Apple has effectively listened to customers and has designed their products as per their desire and needs due to which many people have multiple Apple devices.
The Pepsi and Coke is ruling the beverage industries by offering same products to their potential customers. They selected different marketing strategies in terms of giving strong competition to each other and they both achieved their specific goals and objectives, while they are dealing on same products. In this case study, marketing is beneficial for both Pepsi and Coke in order to achieve their specific goals and objectives. Thus, marketing will helps business entities in gaining competitive advantage in a business environment.
Marketing includes targeting customers and advising technical team to how to design products so that they meet customer needs, determine pricing structure of product, provide efficient channels via which customers can communicate with customer care and evolve and implement promotional strategies as per that (Babin and Zikmund, 2015). To understand this again Apple Inc. can be taken into consideration. Apple develop and design their products after feedback received from customers, as per their perceptions. Technical team ensures that modifications are made in software, hardware and then make pricing strategies so that they can easily fit into budget of customer. Pricing strategies can vary as per colour, storage space, battery capacity, screen resolution, processor, camera, operating system and many more factors. Apple ensure that products made available by them cover almost all type of customers. Apple Inc. ensure that products are sold at accessible location, Apple store, which makes easy to look for product. They advertise their products using different media which vary from promotional activities to online advertisement, television, newspapers and magazines, so that they can reach large number of potential customers.
From above a clarity is provided about marketing. It is not only about selling and promoting products, its more about understanding customers, designing products as per requirements and maintain a healthy communication with customers(Baker and Saren, 2016). It is assumed that marketing follows corporate strategies and will proceed as per ethical practices and will serve interests of both organization and society.
- Ahmadzadeh, M., Eidi, F. and Kagopour, M., 2017. Studying the Effects of Environmental Commitments on Green Marketing Strategies.International Journal of Economic Perspectives.
- Babin, B. J. and Zikmund, W. G., 2015.Exploring marketing research. Cengage Learning.
- Baker, M. J. and Saren, M. eds., 2016.Marketing theory: a student text. Sage.
1. Practical examples related with key challenges companies face in reaching consumers.
In today's era starting a business is not a easy task. Small companies or start ups have to juggle between ancient knowledge, present priorities, forthcoming planning and interruptions which each day brings with it (8 Common Small Business Marketing Challenges and How to Overcome Them 2018). It is difficult for small companies to find time for marketing and figure out how products being offered by them can be brought up in market. Various challenges are faced by companies like Fourex, Imaginera, Davison Canners, Elliptic or any small organizations related with customers. Here various challenges are analysed and how those can be handled is provided in following text.
The biggest challenge identified here is of funding. When proper funds are not available with any organization then it wont be possible for them to bring their product in market or advertise it in effective manner so that it can reach to customers (Lovelock and Patterson, 2015). When start up or business is in initial year, it is difficult for them to make money to sustain within market. Clients interrupt, run behind for payments, pressure to stay in specific field and making efficient money is not easy. For example- Snapdeal is a company which was once the second most well renowned and profitable company after Flipkart. But due to rapid competition, potential investors of Snapdeal are now pulling back from funding the activities due to which company has been facing financial issues since last some time. This has lead to fall of company and as a result, sales of Snapdeal has been significantly affected in long run.
Second challenge is standing out among crowd or within market in respect of services being offered by them. Today there is substitute available for every product like different companies are designing mobile phones but features they are providing may vary like Apple have unique structure but due to high rates everyone cannot afford iPhone so they go for some other company like Lenovo, Oppo, Vivo or any company which they feel is affordable. Price and features make major difference and they are proportional to each other like features provided by Apple Inc. are more so price is high due to this they stand out of competitors. Security features can be considered as major barriers which will make smart phone companies stand out. It is important to analyse features which will make organization stand out in comparison to other organizations (Pearson, 2016). Apple's iPhone X have edge to edge screen, face ID security feature, animated emojis, portrait like selfies and upgraded batteries are not provided by any other mobile phone manufacturer. This makes them stand out and became choice of customers. Small organisations have to develop their reputation and provide extraordinary services to customers.
Last but not least challenge is getting found by customers. It depends on company to target customers and find them, it is not possible to productively reach every customer. It becomes difficult for customers to find out products being offered (West, Ford and Ibrahim, 2015). It is necessary that small organisation when searched by customers online are available. Like mobile phone companies have their own stores available where customers can get required products. Apple Inc. has provided large number of stores in almost every country due to which they are able to retain their customers as they listen to needs of customers and make sure that their demands are effectively met. Similarly other companies can do so that they can retain their customers.
- Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
- Pearson, S., 2016. Building brands directly: creating business value from customer relationships. Springer.
- West, D. C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive advantage. Oxford University Press, USA.
2. Marketing skills that drove huge growth of supermarkets like Tesco, Sainsbury’s and Morrison’s are same as those needed to address marketing challenge they currently face.
Marketer should have effective analytical and creative skills so as to identify unique ways of marketing companies' products. This will provide flexibility in creating different marketing campaigns. They should know the way to derive results from important information about products provided by company. For this, they use appropriate technology like data collection, interpretation and recognise quality of data, analytical and testing techniques, metrics for measuring marketing performance. Data analysis skills provide solution to questions related to marketing in relation to many big companies like Tesco, Sainsbury’s, Morrison’s which adopt a customer-centred approach. Marketer should have adaptability identifying latest trends and patterns in market and tap its advantage in business.
Marketer must have data visualisation skills as picture specifies more then words being said. While explaining and interpreting relationship between complexity and volume, businesses rely on visualisation for which different tools are available. This will help to communicate and break down complex statistical notion (Lovelock and Patterson, 2015). This includes working with large information, story telling skills and familiarity with specialised software, Excel. Digital advertising is one of most growing ways to address customers. This include search engine optimisation, banner ads, email marketing, social networking. This creates new demands and desire, loyalty and attracts large number of customers.
Creativity and innovation are important factors which helps to translate ideas into products, marketing campaigns and better business processes. Marketer needs to have creative as well as creative thinking which will lead to risk taking but can also provide better results. Working with advertising and marketing campaign manager will multitask across execution, planning and delivery of work and is responsible for bringing brand into life. Technology helps to alter ways of operating on day to day basis (McDonald and Wilson, 2016). Marketing automation tools, social media management tools, web analytics, email marketing platforms are used by marketers.
Marketers need to stand out among competitors for which they need to enhance their skills. Updation of their skills and competence act as the biggest challenge for them. Also, finding customers is another big hurdle as population is vast and not everyone is capable of buying company's products. Retaining the customers is yet another big challenge for organizations like Tesco, Sainsbury’s, Morrison’s. They have to excel in services being provided by them. For instance- iPhone is owned by a number of persons and every single individual have different versions of iPhone, this means that they are excelling in services which they provide. Some other challenges that occur within marketing are getting attention from customers, being valuable to them, expansion, burnout, funding and many more.
Marketing skills possessed by marketer are not same to challenges faced by them, as individual can have knowledge of all skills but possession or mastering of all skills is not possible practically. And as challenge may vary due to enhancement in technology, current trends, competition within market and many more, skills also needs to be enhanced as per that. Its better to be somewhere rather than being at top as there is possibility of improvement and enhancement in knowledge and skills. assignment help in australia
- Gillespie, K. and Riddle, L., 2015. Global marketing. Routledge.
- Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
- McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons.
4. Charge for particular service or product and advice to them about same.
Different pricing strategies are followed by different organizations to price their products and services they are offering. Organizations analyse following factors to set price of their services. First factor is to know the market i.e. understand how much customer will pay for specific product and what competitors are charging for same product. It depends on them either to beat or match those prices. They ensures that direct (manufacturing costs) and indirect (cost of raw materials) costs are met. Second factor which must be considered is usage of best pricing method. Cost plus pricing includes mark up percentage to cost and this will vary from sectors, businesses or products. Value based pricing helps to determine value of product to customer.
Third factor is include all work cost which means that direct costs are included i.e. money which spent in implementation and launching of product (Li and et. al., 2016). Now find out cost of variables which includes packaging, materials and many more, when sale of product increases then their (variables) cost will also be increased. Find out what percentage of fixed cost like rates, wages, rent, etc. are needed to be covered with cost of product. Consider all these and then split by volume to be produced. Fourth factor is reckon cost plus pricing in which margin is added to break even point. Level of mark-up will be analysed from knowledge of market. If price appear to be high then decrease prices as per that (Nagle and Müller, 2017). This factors depends on perception that all products will be sold, if this not met then profit will be lowered.
Fifth factor which must be considered is set value based price in which market is evaluated like cost in manufacturing dryer is £10 but as per market rates organization can charge £25. Sixth factor is, consider other factors like impact of VAT on price (Seven ways to price your product. 2019). For this prices must be calculated for different markets, territories or sales which is done online. Last but not least keep eye on market i.e. competitors and as per that make modifications.
As per me organization must offer prices in such a way that they are affordable to almost every customer (Lovelock and Patterson, 2015). Organizations must ensure that features which they are
mentioning in their advertisement are covered and customer gets value for price. Many organisations like Apple Inc. follow skimming strategy in which when product is launched in market, it is sold at high price due to its incomparable features and unique design. This strategy can be used when something new is brought up in market. After certain time prices of same products are reduced when they are about to end and they are brought up in competitive prices. This strategy will help organization to make use of occasions and opportunities to make more money. If seen practically, when such product is bought it will lack latest technology and features but still customers goes for it due to brand name. Organizations must provide flexibility in prices as per requirements of customer so that they can have value for money.
- Li, B., and et. al., 2016. Pricing strategy and coordination in a dual channel supply chain with a risk-averse retailer. International Journal of Production Economics.
- Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
- Nagle, T. T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing more profitably. Routledge