Marketing Assignment Essay
This can vary, for example, PC World offers discounts and credit terms that will all alter the price different individual consumers will pay. 3. Promotion: Promotion describes the activities undertaken to ensure the consumer knows about the product and its capabilities. It usually combines advertising, sales promotion, public relations and personal selling. 4. Place: Place describes where and how the consumer can obtain the product. For example, Tests has stores all over the country but place does not have to be a physical location. Nowadays consumers can buy books over the telephone, IA the Internet or through their TV remote control.
Producers have to choose the best method carefully to ensure consumers can find their product in an appropriate place when they decide to make a purchase. Once the marketing objectives have been agreed, marketing plans must be developed to achieve goals. Objectives of developing mix A business will tailor its marketing mix to suit its objectives. The objectives may include the following. Support brand building. Satisfy needs and aspirations of targeted group of customers. Support brand building The marketing mix supports the building of brands through product strategies.
A strong brand allows a business to make more effective use of its marketing strategies by promoting more than one product within the brand range, and raises the profile of new products in the brand, for example, Colgate is a brand owned by Colgate-Palmolive. The Colgate brand has a strong reputation for dental hygiene products like toothpaste and toothbrushes. However, the strength of the brand means that the business can offer products to segments the market – teeth whitening, sensitive teeth, children’s toothpaste and so on, while limiting the investment it puts into raising awareness of the brand in the arrest.
It also reassures businesses stocking Colgate products, because they can see how much value customers place on the brand and effectively judge the level of risk associated with stocking the new product. Satisfy needs and aspirations of targeted group of customers The four As of the marketing mix are parameters that a business can control, although they are subject to the internal and external constraints of the marketing environment. The goal is to make decisions that centre the four As on the customers in the target market, in order to create perceived value and narrate a positive response.
If a product genuinely satisfies the needs and aspirations of its target market, it stands a better chance of a long-term success than a product that does not. A marketing mix should convince customers that they need the product, but the product itself (an important part of the marketing mix) needs to reinforce the message. Importance of need for cohesion of different elements of the marketing mix People who want a can of Coke need to find them in a variety of convenient locations, such as local shops. They are unlikely to search extensively to find a an of Coke if it is not there, and may choose an alternative.
Promotion is used to make a particular product to stand out from the crowd. The secret of success lies by blending the elements of the marketing mix effectively, as each individual product requires a different blend of the marketing mix. Coca-Cola needs to ensure that their product tastes pleasant, but the most important marketing mix elements are probably place and promotion for them. Product My product is rowing equipment all the way to the rowing clothing; the equipment will then range from the actual boats through to the rowing machines ND the clothing goes from racing gear all the way to blazers for big regattas and training gear.
My target market is new clubs just starting out, for all age ranges and all genders. This gives me a wider market to work with. The benefits for my targeted customers are that my prices will be cheaper than my competitors on the clothing side of my business, I will also be offering a deal on boat, like buy one get one half price for example, this will be good as they are getting two boats cheaper with me than they would in my competitors shops. One of my benefits will be the ability to get to any destination with the product tit a time that suits you within reason, rather than my company just turning up at inconvenient times.
I will have the best footplates for the boats, the best handle grips and the best quality kit as a standard to all my customers unlike my competitors that will charge more for these items. The last benefits that I will have for my customers will be the after sale, this will include, after sale services, warranties, delivery. I will also have a repair space that I can fix damages to a boat or the oars. The product life cycle is a concept that a product, like humans, has a life, so hey are born, they grow up, they mature and then they die.
It is useful to help you see where your product is and where it is heading in the future. The introductory stage is when the product is new to the market and that there may only be only a few organizations with this product, this will mean that there is high costs but low output, this will cause the organizations to have a higher price to cover the development and the initial promotional costs, but even then this might not guarantee a profit. Promotion concentrates on telling the customers what the product does.
If the customers accept the product then sales will grow rapidly. This is the growth stage, profits begin to rack up and there is a higher production levels that reduce the costs of the product. The problem now is that there is now more competition buying into this new product, this will cause the existing companies to invest more money into building the brand image, product improvements and sales promotions to obtain the dominant market position. The product has now hit the maturity stage; this is when the product experiences stable sales.
This is generally the longest the longest period of a successful reduces life. But eventually sales will fall and the market fids itself with too many producers, who begin to suffer poor sales and falling profits. Some leave the market, while others employ strategies to extend the life of the product. Price Price is one element of the marketing mix that produces revenue; the others produce costs. Prices can be changed quickly. A business must set a price for a product and, in deciding the product’s price, marketers must follow a six-step process. . Select the price objective – the objective could be to survive, or to maximize their market share. 2. Determine demand – the higher the price, the lower the demand and visa versa. 3. Estimate costs – every business should charge a price that covers the cost of producing, distributing and selling the product to create a profit. 4. Analyses competitors’ costs, prices and offers the business must take into account its competitors’ costs and prices before setting their own price. 5.
Select a pricing strategy – there are a number of price strategies that must be considered and the business will decide which one is best suited. 6. Select the final price – this is decided after testing on a variety of racing points. For my product I have a price objective to survive in the first three years of my set up, this will help me establish into the market. The demand in the product is stable, there is a steady demand so charging my prices lower than my competitors will to gain more customers and demand from me, this will help me bring in more profit.
In estimating my costs I will not have production costs, as I will by from another company, so my costs will be lower than my competitors as will only have to worry about the distribution and selling costs. The competitors ricers for their products are quite high, that is due to their costs being high, this means if I can cut back on my costs but still give a quality product this means can give a lower price meaning I make more sales. There are seven pricing strategies to choose from: 1 . Pricing: this is where they charge a high price for the product to make the customers associate the product with high quality. . Penetration pricing: this is when the product is put in at a low price to create sales before they increase the price. 3. Economy pricing: this is when there is a deliberate eating of a low price in order to boost sales. 4. Skim pricing: this is when the price is high as there is less competition in the marketplace, then as more similar products enter the market the price is lowered to remain competitive. 5. Psychological pricing: This is when the product is priced high to create an image in the customer’s head that the high price is linked with high quality.
They rely on the customer’s emotive responses, subjective views and feelings towards specific pricing. 6. Captive product pricing: This is when there is a product, like a printer or example, that requires ink in order to work, the ink will have a high price, but the initial price for the printer is low. 7. Product line pricing: this is when the pricing of different products within the same product range is at different price points. For example, a DVD player has different price ranges, as one might be standard, but the other one may come with a blue-ray disc reader. Ill have a pricing strategy of pricing; this is because I want my products to be thought to be high quality, this will also help with bringing in sales and income into the business. I might use that strategy during the summer when there is all the buying for equipment as the big regattas are on during this time, then during the summer I will use economy pricing, as it will attract people looking for cheap deals to replace old kit over the winter training period. Place Place in the marketing mix refers to where the product is purchased from and how it is distributed.
For example, most consumers of confectionery items will buy products from a retail store, a supermarket or a corner store, however, in order to sell the confectionery at the stores, the business needs to sell and stubbier the products to the wholesalers who will sell direct to the retailers. In some cases, the business may sell straight to the consumer as well as distributors and retailers. While a consumer will typically only want one product in a range, a retailer might want a selection of products from a range, and a wholesaler might purchase a substantial quantity of products in the range.
Each might expect to purchase the products under different terms; for example, the customer might want the product as soon as possible and expect to pay immediately, whereas the wholesaler might order a week in advance and expect o pay in 30 days’ time. Businesses need to adapt their marketing mix depending on the end customer; this will be whether the end customer is a consumer or a wholesaler, as they will be expecting different things from the same product.
My business will be the retail shop from the example above, I will be buying from the producer and creating the link between customer and producer. I will try and make a deal with the producers of the products to supply me with the products only, so I become the main source of their boats or equipment, this will produce a lot of income if seal this deal with a big company like Hudson Footwork’s. Distribution There are two different types of distribution methods: 1 . Indirect distribution: this is when the product goes through three different companies before it reaches the customers. . Direct distribution: this is when the product goes from producer straight to the customer with no between. Choosing indirect distribution may mean the business will loose some control of the pricing of their products, as they have to offer discounts to wholesalers and retailers, who may choose to pass on savings to the customers. However, this method could be saving the costs of distribution and making products available o customers immediately from a wide range of outlets.
Direct Distribution is for the companies that are selling expensive items like Apple, for example, they sell their product to customers through their website and distribute straight to the customers home. Online and/or physical presence The growth of online shopping is producing a lot of businesses a new place to sell their products to the customers. This offers a significant advantage for the businesses that are interested in selling direct to the consumers, because it gives them a virtual shop to browse from the comfort of their own home, where they an purchase items straight from the warehouse.
This may offer the business new benefits, such as avoiding wholesalers and therefore increasing the profit margins on their products, while still being seen to offer discounts. My business will have a website as well as a shop, on my website it will be able to be seen on tablets and smartness as well as on a computer and laptop, my website will allow the customers to design their clothing to the range of colossus can provide, it will also allow them to make changes to the boats inside colors as well as the outside design of the boat.
I will have distribution centers all over the country so I can reach everywhere, this will Costa lot but it will be worth it due to the wide customer base I will have. Promotion Promotion is the way a business first sells their product to the consumers. It is a way for the business to inform, persuade and influence the customer to purchase their product or service. Most companies use a thing called AID to help them get the right balance for their advert or other types of promotion.
An integrated mix of promotions in commonly used to attain AID and this is generally known as the promotional mix. Promotional mix The promotional mix involves the blending of a number variables to satisfy the needs of a business’s target market and achieve its organizational objectives. The promotional mix is a subset of the overall marketing mix, a business attempts to achieve the best blend of promotional elements to suit their promotional objectives. The components or the promotional mix are: 1. Advertising 2. Sales promotion 3.
Personal selling 4. Public relations Advertising, sales promotion and personal selling are the most significant elements because they usually account for the majority of a business’s rumination expenditure. However, all factors contribute to successful and efficient marketing promotions campaign. Advertising Advertising may be defined as paid promotions through various media by businesses, non-profit organizations and individuals that are in some way identified in the advertising message and hope to inform or persuade members of a particular audience.
Advertisers have many methods to try and get the consumer to buy their products. Often, what they are seen to be selling is a lifestyle or an image rather than the product itself. Advertising uses all types of Edie at the same time, Auto-glass, for example, have ads in car magazines, on the TV, the internet and on the radio, these are the four ways that a lot of people will here about their latest offers and deals. The online techniques they use are things such as banners and free download of songs and film to entice you in; once you click for that download they target you.
Personal selling Personal selling is a skilled task; it requires training a sales team and may be one of the more expensive aspects of the promotional mix. This is where a seller presents a product direct to the consumer, often face to face, but it can also e over the telephone and through video-conferencing and instant messaging. Personal selling may reach less people than the TV adverts and the radio ads as well but it is generally more effective. Public relations Public relations covers the firm’s communications and relationships with the public.
This includes customers, suppliers, stockholders, employees, the government, the general public and the society in which the organization operates. Public relations programs can be either formal or informal. Publicity is an important part of an effective public relations effort. It can be defined as he non-personal stimulation of demand for a good, service, person, cause or organization by placing significant news about it in a published medium or by obtaining favorable presentation of it through the radio, television, internet or that which is not paid for by an identified sponsor.
Compared to personal selling, advertising and even promotion, expenditures for public relations are usually low in most firms. Since they do not pay for it, companies have less control over the publication by the press or electronic media of good or bad company news. For this reason, a consumer may find this type of news source more believable than he information disseminated directly by the company. Sales promotion Sales promotion relates to marketing activities that fell outside of the categories described above.
These can include coupons, trade shows, displays, samples and other promotional efforts that occur on an irregular basis. Sales promotions are often short term and opportunistic, so may contribute to a spike (sudden short rise) in interest in a product or service. However, they are often combined with other promotional activity to provide longer-term growth. With my business I will do a mixture of all of them. I will use different medias o get my word out to the people as well as using famous faces to help sell my service and shop.
I will use personal selling to help me create a bond with my clients and to help create an image of my company that we are friendly. My public relations side will be trained to a high standard to talk and deal with different people whether it be my suppliers or my customers, they will be able to deal with all of them. My sales promotions will include coupons, to help bring in more sales in the winter, as well as end of season sales. When the racing season comes to an end, there will be sales to help sell off any remaining stock I have left over.
Marketing assignment Essay
The voluntary sector do not work for profits and they are organizations that work for charity. This means that they will be helping to raise money for a particular charity for example Oxford. The two organizations that I will be basing my report on is SAD and Subway. SAD and Subway work in the private sector. This means that they operate for profits. Sodas and Subways objectives may be to build customer relationships, to find ways to grow their business and to build the knowledge of their brands to other people. There are different marketing techniques.
This would be linked to Nations growth strategies. These marketing techniques are, market penetration, market development, product development and diversification. Market penetration is about trying to sell a product that is already existing to customers that are also already existing. This means to try and get the same people to buy the same product or thing. SAD use market penetration by advertising their products for example a new range of clothing or books. This may mean that the public may be interested in these and so might want to have a look at them.
If the product looks interesting and eye catching the individual may then buy them. SAD also use market penetration by having offers for example buy one get one half price. These offers show the audience that the products that they may buy is now cheaper. This therefore may make the public more interested to buy the item before the offer ends. Subway use market penetration by also advertising their products. They do this by showing their low fat meals and their deals. This encourages the public to buy their products as it is healthy and suggests that their products are cheap to the customer.
Subway also send out leaflets with offers. This is so that the customers now how much they are saving and so they can compare to other businesses on the price they would normally have been paying. Subway also have a reward system called scabbard. This would encourage the public to buy more of their products as they get points on the card. The more points that the customer has earn means the more points that they would get the effect of this is that they may have one of their products for free. Subway and SAD have similarities and differences between the techniques.
One similarity of Subway and SAD is that they both have coupons. This means that the customers are able to collect these upon and use them between an expiry dates. The effect of this is that they can decide when they would like to use them and therefore save money on the different products that they have on offer. Another similarity would be that they both have television adverts. This is so that they can show potential customers how much money they could save if they were going to shop with them. This is shown is Sodas adverts as they have the price lock method.
This shows that SAD ensure that certain products stay at a low price. It is also shown in Subways advert as they show their meal deals Subway and SAD ensure that hey show the customers their deals and their best range of products. The effect of this is that they can promote their products and introduce items such as new and improved. This makes the customers and potential customers want to try the latest product. SAD and Subway also have their differences of ways to get others to buy more of their product. This may be because Subway have a reward system. This is called a scabbard.
This is where a customer buys one of their products and gets a certain amount of points put on to it. The more points that they have means the more likely they have one of their products or free for example 600 points may mean that they have a 6 inch sub for free so the customer may wait for all of the points to get this product. However SAD have sales. This means that there are more of their products that are cheaper. Even though both of their products may be cheaper SAD do not have a system in place where the members of the public can save points to get one of their products for free.
Another thing may be that even though both of these organizations advertise their products SAD advertise their products a lot more than what subway do. This may be because they have more products than Subway. The effect of this is that SAD may be more well-known than Subway. Think that Sodas strategy has let do their success because their products are advertised more and they introduce more deals on their products. This means that potential customers and their existing customers can see that there are always deals on their items. The effect of this is that they may want to visit the store and see these products.
The effect of this is that they may buy them. This may be because they may want to buy them quickly before the offer has ran out. Also think that Sodas strategy has led to their success because they have 10% cheaper or your money back guarantee. This mean that their customers can check from other shopping places and the price from SAD and compare the prices. The effect of this is that if some of Sodas products are more expensive then the customer will get their money back. This promotes them to buy more from the shop to see if they are better than other supermarkets.
I think that SAD could do things differently for example adding in loyalty cards. This is so that people may buy more so they can save more money. The effect of this is that they may have more business in their store. I also think this because SAD are open longer than Subway. This means that more customers would go into this shopping area than Subway. The effect of this is that SAD may have more customers. Market development is about selling their products to a new market for example selling their items to different countries. This may mean that businesses can become a global company.
SAD have used market development because SAD used to be a business created in Yorkshire. It was also called queens supermarkets. Queen’s supermarkets changed their name to SAD in 1968 and decided to add new products to their range. Since then SAD have expanded and is now a part of Walter. Recently SAD have created click and collect. This is where you can choose the products that you want online and then you can collect them from the supermarket for free. This means that they have encouraged people that do not have time to do shopping to pick up their products without the time choosing them.
The effect of this is that they have now sold their products to a different market audience. In 2011 SAD now have 523 stores. They are now more recognized and have a wide range of products. Subway have used market development. This is because they first started with sandwiches. Since they have been open they have added salad bowls, meal deals and breakfasts. Subway have also recently added children meals. The effect of this is that they now have an increase of customers. Subway has also decided to add different meals and have recently ensured that their products are hall.
Subway was created in Connecticut in 1995 and they entered a Partnership with the British heart foundation. Subway is now widely spread around the UK with 2000 stores in the UK and Ireland. Http://your. Sad. Com/about-Sad/the-history-of-Sad Subway and SAD have similarities and differences with using market development. One similarity is that they both are involved with the food industry. This is because SAD sell the food to their customers. However Subway let their customers create their own product and make the food for them. This part would be a difference.
Another similarity is that they both have changed their name since they have been discovered. This is because SAD used to be called queens supermarkets and Subway used to be called Pet’s super submarines. Another similarity is that they both now have partnered up with a charity. This is because Subway has partnered with the British heart foundation and SAD is partnered with fare share. This is where they donate food to different countries for people that do not have much. Another similarity is that they have both added stores around the UK.
This means that they may be able to sell more of their products. The effect of this is that they may be able to make more profits and therefore earn more business. If these companies made more profit they may be able to buy more stores. The effect of this is that they may be more well-known and therefore be able to become a global business. Subway and SAD also have mom differences. This is because SAD have promoted their click and collect method. This is so that they can ensure that other customers and their potential customers are able to get their products more easily.
However Subway do not have a delivery option. This means that their customers have to go into their store for them to buy their products. The effect of this is that there customers may be put off the idea and so they may shop more in different stores. Another difference is that SAD has been bought by the Walter Company. This means that they have had extra input on the type of things that should be sold in their tortes. However Subway has still been their own company and have made all of the decisions by themselves. Think that Subways strategies have led to their success.
This is because I think they have added a lot of new products to their company for them to have more customers for example Subway now having kids meals. This means that they have now approved to this market and so have been successful for receiving more profit. Also think that Subway has had their success because they have added more stores in the UK and in Ireland. This means that they can find reviews on their business from other areas and develop n these. The effect of this is that they may make their business even better and create more stores in different places. Product development is another technique.
This is where you introduce new products to the same audience that you have had for your other products. For example a clothing shop may only sell one type of clothing so they introduce new styles of clothes to encourage the previous customers to buy the new product. SAD use product development. This is because they now have meal deals. This is using product development because their customers might have only bought for example a sandwich. However now SAD have added a deal for the customers so that if they also buy other items in the meal deal then they will save money.
SAD have also added seasonal clothing. One type of seasonal clothing is Christmas. This is product development because SAD didn’t sell seasonal clothing beforehand. This means that there customers would not have bought it as it is not available. However now it is available their previous audience of customers may buy the product. This may be because it is a new product. SAD have also used product development as they always introduce different products to their market. For example they have now added their own Simi card for mobile phones at a competitive price.
This means that their audience may change their network of their mobile phones so that they can get this product. The effect of this is that they are encouraging their customers to change more of their products for Sodas. Finally another way that SAD have used product development is by having new recipes for their products. This is product development because the new recipes and added ingredients would make the product a new type. The previous customers that may have bought the old brand of their product may ay the one with the new recipe.
This is because they may have bought the older product and they might want to see the difference from their new product and their old one. The effect of this is that they would be buying the new product. Subway use product development. This may be because they have decided to add different methods to their sandwiches. One method that they have added is for the sandwiches to be toasted instead of a normal sandwich. This is product development as their audience are still able to have the same ingredients in their sub however they can toast it as well if they wanted to.
The effect of this is that the customer has more choice when deciding what it is that they want to eat and the ways that they want to eat it. Subway has also used product development. This is because they have added new and limited time only subs. One limited time only sandwich is the chorizo sandwich and they also have seasonal subs for example Christmas. This is product development as their current audience are able to see the different subs available and they may decide to try something different. The fact that the chorizo sub is a limited time offer may mean that their customers may be more likely to try it.
The effect of this is that Subway may have more business. Subway has also used product development because they have changed the size of their meat that they put in their sandwiches, For example they used to have big pieces of meat and now they have added meatballs. The effect of this is that the customers have more variety of ingredients. Subway has also added meal deals. This is so that their customers can save money if they buy more than one thing from them. The effect of this is that they may end making more business and their customers may want to look at their limited time offers on their products.
SAD and Subway also have similarities and differences. One similarity is that they both have added festive products to their selection. This is because SAD introduce festive clothing and Subway has festive ingredients in their products. Both businesses also have offers for their products. This is because Subway uses the offers to their new products to promote their customers to try their selection and SAD use the offers to their new items so that they are easy to see the discounts and so that they can ensure that their customers have a good review on them if they are bought.
The customers would e encouraged to buy their new products as they will be able to see that they are saving money on their selected products. Another similarity is that SAD and Subway have added new ingredients to products that they sell. This is because SAD have “new recipe” items and Subway have added new sandwich ideas to their stock. The effect of this is that they both target their items to their existing customers. Another similarity is that SAD and Subway both have meal deals. This means that the customers may buy more of the new products available to them. This would therefore help the company’s profit.
Subway and SAD also eave their differences. One difference is that Subway is really motivated to make their products healthier. This is a difference because they add new products to their subs to ensure that the calories are less and the saturated fat is low. The effect of this is that their customers are able to look at the different items that help to make the sandwich healthier and then they can use these guidelines to choose what it is that they want. Another difference is that subway has limited time products. This means that some of their products will end and they may not be seen back on the menu again.
The effect of this is that their customers ay try to buy the product before the offer and product ends. The effect of this is that they may sell more of this item. I think that Sodas strategy of product development has led to their success because they add new items to their stock all of the time. This means that their customers are able to have a wide choice of items to buy. The fact that SAD have new stock means that their customers are able to see what the new stock is and they can then decide if it is something that they would like to buy.
I also think that Sodas strategy has led to their success because they have offers for their new products. This would encourage their regular customers to look at their new items and so they may spread the word of the offers that are available for the items to produce new customers. The effect of this is that their profits may be increased and their store may have more good reviews. Diversification is another marketing technique. This is where the company develops new product and delivers it to a new market. For example a clothing store may start to sell other items like furniture.
This would bring a market for people that are looking for new items for their home. SAD uses diversification. This may be by them adding a Simi card to their products. This would be diversification because it is a new item in their products. This means that it has not been in their store before also the fact that SAD now have a Simi card in their store means that there is a new type of audience. This is because people that own a mobile phone can go into the store and find out information about this product. The effect of this is that the store can have more potential customers.
SAD also use diversification by adding new restaurants to their stores. This means that shoppers that are in the store can also eat here. The act that there are restaurants in their stores also means that families will be able to eat in the store. This would be because families that may not have shopped in the store because their children may not have the correct type of food for example bottled milk or baby food can now enjoy shopping, this is because the store has microwave areas and the staff also will warm up baby bottles if needed.
This means that families can now take part in shopping together. Diversification has also been used in SAD by them having a click and collect service. This is because people that work and have not got a lot of time to do the shopping can owe order the shopping online and pick it up at the store already packed and picked. The effect of this is that people who work will not have to use much of their time walking around the store to find the items that they need. This opens more opportunities to this audience. SAD also have a delivery service.
This is diversification because it means that people who find it difficult to get to the store can now have the items that they want to be delivered to them. This would make it easier for businesses and for example disabled people. These are a few ways that SAD has used diversification. SAD also have petrol stations. This would mean that people that drive are able to buy petrol form this company therefore meaning that SAD can create more customers. Subway has used diversification. One way that has used diversification is by introducing new meals. This is because Subway now has “kid’s packs”.
This is a sandwich for children that comes in a bag with a cartoon character on and is full of other items to make a meal deal for the children. This has brought a new audience into the business because before their meals would have been to filling for a child and their parents may have wasted money going to the business. The families may have also gone to a different business because of this. The effect of this is that now there are “kid’s packs” children and their parents are now able to eat in the restaurant. Another way that Subway may have used diversification may be by having a new product called meatiest meal.
This is a meal that encourages men to try as it suggests that you must be strong to eat it. The effect of this is that more male customers may go into the business to try this product. Diversification may have also been used by Subway because they have added new food products that are healthier to people. This means that they have cut down on fats and sugars for example. The effect of this is that a person that want to eat out and are looking for somewhere that is quite cheap and healthy may not have come here in the past or even thought about Subway.
The fact that Subways products are now tackling calories and fats means that these customers will now be able to eat here. Subway also now opens earlier. This means that people that are on the way to school or work will be able to have a breakfast sub. The effect of this is that more people will be able to eat here and therefore help the business. SAD and Subway have their similarities and difference when it comes to diversification. One similarity is that they have both been approved for the children’s audience. This is because SAD now have bottle warming facilities and Subway now have children’s meals.
The effect of this is that families are now also able to eat out and not worry when their child’s gets hungry. Another similarity is that they have both thought about the convenience of their store. This is because SAD have added delivery services and Subway have changed their opening hours for the public. The effect of this is that more people will be able o shop at their stores. SAD and Subway has also added more variety to their foods. This is because Subway has added different ingredients to increase the audience for people that want to eat healthier and SAD has added “new recipe” products.
This would increase their market audience for people that would like to try new foods. SAD and Subway also have their differences. One difference would be that Subway have changed their products so that they are healthier however even though SAD have added new products to their range they have not really ensured the healthiness of the products. Subway have introduced new hypes of bread to their menu for example flattered as it has less calories and is healthier for their customers. Another difference is that SAD also have different services in their store for example insurance and life cover.
The effect of this is that there are more potential audiences for their products. Subway do not have other services meaning that one of the main ways that they try to introduce new customers is by the products that they sell. I think that Sodas strategy has led to their success. This is because they have ensured that everybody are able to have service at their stores. This is because SAD have delivery so people that cannot go out to the store can still have some of their products. SAD also have different services in their store to introduce new customers.
This is because they have insurance, life cover and credit cards. This means that older people will be able to access their services for example for the life cover. People that also do not have a lot of money will also be able to have a credit card from SAD. This therefore means that SAD have catered for most audiences. The effect of this is that everybody will be able to use these services and access them. Branding is one aspect that helps the business to get their customers and encourage new customers to shop with these stores.
Branding is a process that is involved to create a unique name and image of the products that are being sold and ensure that these images and names stick into the customers minds. One way that this could be done is by having bright colors. Branding included the company’s slogan, logo, brand, and brand building. Brand building is about having consistent products of high quality, having clear messages to their audience and is about showing the values of their products. SAD use branding.
This is because they have the slogan of “saving you money every day”‘ this is using branding as their customers are able to remember their slogan and easily remember what store it is coming from. This is because their slogan is on their advertisements. These advertisements show the differences in prices for their products and suggests to their customers that their items are value to their money and easy accessible. Sodas logo is also brightly colored as their writing is bright green and their letters are big and easy to see. This means that their customers may notice their logo and they may want to shop with them.
SAD also have posters that are at bus stops with some of their deals on. These posters are green and are consistent with their house style. The fact that they have these deals and advertise on the television means that they may stand out more as they have the tapping pocked advertisement. This is showing their customers that when you shop at SAD you save money on their products. The effect of this is that their customers may have more brand awareness and of the items that this store sells. SAD locate their shopping centers near other stores. This is so that people that look in the stores around them may often pop in to
SAD This may be because they may think that if they are close to a shopping centre and they only need a few bits then they can get it from there. The effect of this is that their store sales would be promoted. Subway use branding. This is because their logo is white, green and yellow. These colors stand out to their customers and encourage them to buy products from them. Subway also have the slogan “eat fresh”. This gives an idea to their customers that all of their products are prepared daily. This promotes that their products are also value for money.
Subway also have vouchers that are given out to their customers and attention customers. This suggests that their products have always got offers on and that they are cheap for them. The effect of this is that people may buy more of their products creating positive profits for their business. Subway also have more stores. This means that more customers can see their stores and that they can ensure that they draw in the customers. This may be because they have healthy products. Subway and SAD have their similarities and differences. One similarity is that they are both thought as value for money.
This is because Subway have offers on their products and SAD has the advertisement of their Taft patting their pocket. The effect of this is that the customers may have the advertisements in their head and remember what store the advert is from and the fact that Subway have their offers may encourage their customers to look at some of their products. Another similarity is that both of these businesses advertise. This is because they both have posters that are put outside the bus stops. These posters stand out to the public and have the name and slogan on them.
The posters also have the same house style as the rest of their products meaning that the company’s values are easily seen from them. Both of these impasses also use bright colors suggesting that all of their products create a happy atmosphere for their customers as they would be saving money or getting the products for quite cheap. The effect of this is that the bright colors would draw in people. Both companies also add new products to their range which gives their customers more information on their products. Subway and SAD also have their difference. This is because SAD advertise more on the television.
This means that people that watch the television often are able to see their adverts more regularly. The fact that their advert is promoted regularly means that the public are able to decide if SAD is a place that they would like to shop. Another difference is that Subways letters for their logo is quite small. This means that their customers may not see their logo so much and so they are less likely than SAD to see where their stores are. Think that Sodas strategy has led to their success because they locate their shopping centre near other shops that are quite popular.
This means that more people are likely to shop in their stores as they can see some of their offers in place. The effect of this is that the company will be able to have more profits and so use some of the profits o promote their stores more. Relationship marketing s also used for these businesses. Relationship marketing is about the companies focusing on the long term values of their customers. This means that these companies may do different things for their customers to encourage them to keep shopping with them. SAD use relationship marketing by having a register online option.
This is so that their customers can choose their shopping on the Sodas website. This may make the customers feel more V. I. P to their company and they may like the fact that they can get more off their deals just by shopping with them ore often. The effect of this is that their company would be promoted and the customer’s views may increase the amount of customers that they get. SAD also use relationship marketing by a newsletter. Their newsletter shows the public that if you sign up to the newsletter then you could get free gifts.
These gifts would make the customer feel more comfortable and trusting with their information for example surveys and email addresses. Credit cards and insurance would also be relationship marketing. This is because their customers may feel thankful that they have catered for all types of people and that they an offer support to these people. The effect of this is that the company may add new ways to ensure that everybody feels this way. SAD also have their own Backbone and twitter account meaning that most people will be able to see the information available for them to make the customers feel like their views matter.
SAD also have a delivery pass that may make the customers feel like their needs are being met as they do not need to go into the store to shop at SAD Subway also use relationship marketing. This is because they have a site to register on. This site is for a charity called helping hearts. This would be allegations marketing because it means that the public may like the fact that they are sponsoring a charity and so they may sign up and help this charity. Signing up will also mean that the public can take part in fun runs and they can give donations.
The effect of this is that more people may register as they know that they will be helping others. Subway also have a scabbard. This would be relationship marketing as it means that the more that the customer’s spends on their items the more points you will save. The effect of this is that the customers buying more items from this business will be able to get free products for their mints. This would mean that the customers may like this and they may feel as if they are being rewarded. This would create a happy environment for these customers. Subway also use relationship marketing as they have their own Backbone and twitter accounts.
This would be relationship marketing as their customers will be able to be up to date with the businesses ideas and plans and they may feel like they are a part of the team. SAD and Subway have similarities and differences in the way that they use relationship marketing. One similarity is that both companies have newsletters. This means that both companies can liver effective information to those that have signed up for them and therefore ensure that their customers have a better understanding of the products and the services that the businesses sell.
Another similarity is that they both try to make the public feel as if they are a part of the team. This may be because they have their own Backbone and twitter page. This means that people can keep up to date with their shops ideas and they can they give reviews on the store so that they can help the company to see what they need to improve. The effect of this is that they may feel like their views count. Subway and SAD also have differences. One difference is that SAD have delivery passes.
This means that their customers can pay for the pass but once it has been bought they can save money instead of paying for the delivery each time they shop there. The effect of this is that the customers do not need to go into the store to do their shopping and therefore they may think that the company is good for example work colleagues and disabled people. The effect of this is that most people will benefit by having the delivery pass. Another difference is that Subway have the scabbard. This means that their customers re able to save money as they will get products for free.
The effect of this is that their customers may buy more so they can have more free products and they may feel as if the items that they get are a reward for shopping with them. The effect of this is that they may continue to shop with this store. I think that Subways strategy has led to their success because they have the sub card. This is because the scabbard is a great way to make the customers feel like they can have free items and ensure that they are able to shop in the store more often. The scabbard also creates a great way to shop with the company and the customers have the choice whether they want to use the card or not.
This gives the customers responsibility and comfort ability in store. This card would be classed as a loyalty card and would make the customers feel positive of the store as they know that the longer that they shop with them then the more points and free items the customers will get. Survival strategies are another techniques that most businesses have. Survival strategies are thing that a company does to ensure that people do not get bored of their business and to create their customers to keep shopping with them.
Marketing assignment Essay
Describe the constraints and the limitations under which marketers operate making use of examples to explain your points.
a) Describe how marketing techniques such as:-
2. Relationship Marketing
3. Growth Strategies – Ansoff matrix
Are used to market products in two organisations. You need to choose one product or service from each organisation to undertake this task.
In the report compare the differences and similarities between the marketing techniques used by both products/product ranges. Use the following headings to help you complete this task •Growth Strategies (Ansoff Matrix)
The task is to be presented as a written report for your manager.
Task 4 addresses D1
Present as a detailed table for your manager
Evaluate the effectiveness of the use of techniques in marketing products or services in one of your selected organisations. You need to judge the effectiveness by weighing up the advantages and disadvantages of the techniques used.
Coursework Internal Verifier
Setting the Scene : Scenario (If appropriate)
You have just been recruited as a junior journalist by the magazine Marketing Week. The magazine is planning to run a series of articles looking at the marketing activities of a number of a well-known business and a local business. As part of the project, you have been asked to carry out research and produce a written report that compares and evaluates the marketing activities. The report must also contain details about the limitations and constraints affecting the marketing activities of each organisation. You may use the products of organisations that operate within either the private, public or voluntary sectors. In selecting your two organisations consider whether you are covering business-to-business (B2B) marketing or business-to-consumer (B2C) marketing.
Coursework Task 1- 3
Assessment and Grading Opportunities
Guidance to help You complete Coursework Tasks
Task 1- Introduction
In your report explain how legislation, voluntary constraints and pressure groups impact upon how your two brands are marketed. It is important that you only include relevant legislation and use hypothetical examples to illustrate your understanding of the points that you have made.
i. Introduction – identify the two organisations and the product or product range within each that you intend to base your assignment on. Identify their main corporate objectives and explain how these influence the marketing objectives set by the respective organisations ii. In the Findings section of your report explain how both organisations Use the Ansoff Matrix to plan their growth strategies. Your answer should include a brief definition of what is meant by the Ansoff Matrix and a diagram (hint use Google Images), next identify which growth strategies your respective organisations have used for the products/product ranges that you have selected. Remember it is most unlikely that the organisations will have used all these growth strategies. Explain how the two products/product ranges use branding. You may like to consider what type of branding they use (corporate, family or individual branding). Finally, identify if they have used brand extension strategies (i.e. used the brand name of a successful product to launch a new product line). Discuss how the two brands use relationship or transactional marketing to build long term relationships with their customers and consumers.
Task 3- Conclusion
In the Conclusions Section of your report compare the differences and similarities between the marketing techniques used by both products/product ranges. Use the following headings to help you complete this task Growth Strategies (Ansoff Matrix)
Assessment and Grading Criteria
Student Guidance to help you complete Task 1-3
P1, M1 and P2
For P1, learners should describe how the marketing techniques listed in the unit content are used in marketing products or services in two different organisations. It is sufficient to select one product/service or product/service range in each organisation. For P2, learners need to describe the limitations and constraints under which marketers operate; this should include legal requirements and the use of voluntary codes and constraints. Learners should relate these constraints to examples. To achieve M1, learners need to demonstrate higher-level skills through comparing or finding the similarities and differences between the use of marketing techniques in marketing products or services in two organisations.
Moodle and Handouts. Textbook.
Coursework Task 4
Assessment and Grading Opportunities
Evaluate the effectiveness of the use of techniques in marketing products or services in one of your selected organisations. You need to judge the effectiveness by weighing up the advantages and disadvantages of the techniques used. Present as a detailed table for your manager. You need to be able to support your evaluation with relevant data. You may like to consider information such as Sales figures
Ideally this evaluation should be linked back to the corporate and marketing objectives you identified in the Introduction Section of your Report.
This task addresses D1
Assessment and Grading Criteria
Student Guidance to help you complete Task 3
For D1, this will be developed further into an evaluation of the effectiveness of the use of marketing techniques in one organisation. Evaluation requires more than stating an opinion and should demonstrate higher-level skills such as researching and interpreting data and using logical judgements about the validity and reliability of the data used to evaluate the effectiveness of the marketing techniques.
Power points. Moodle and Handouts. Textbook.
Introduction –Task 1
Introduction – identify the two organisations and the product or product range within each that you intend to base your assignment on. Identify their main corporate objectives and explain how these influence the marketing objectives set by the respective organisations (100 words).
Describe the constraints and the limitations under which marketers operate making use of examples to explain your points. This task addresses P2 Discuss four laws that have to be followed
Explain what is the “voluntary code of practice” that has to be followed
The voluntary code of practice is that everyone/ every business has to follow these laws. If they do not comply they can get fines and be sent to jail.
Findings – Task 2
Definition of branding-
A brand is a “name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers.
Supervalu’s branding includes their logo “real food, real people” and their name. Supervalu has their own brand of goods, the branding on these goods include the Supervalu logo and are available thought all stores. Supervalu’s logo is placed in front of all of its shops as well as trolleys and other things in the store.
Why is Supervalu successful-
Supervalu’s success over the years can be attributed to our innovative approach in all areas of the business to reflect the changing lifestyles and demands of our customers. “We are constantly reviewing our product range, putting new product ranges from Irish producers on our shelves and developing our stores to ensure our customers can expect the ‘WOW’ factor at all times. Indeed our knowledge and the closeness of our retail partners to their consumers and communities has fuelled many new initiatives including the development and expansion of our own brand product range that has become increasingly popular with consumers. We are continuing to build this range whilst maintaining our partnership with local suppliers, value for money and the quality standards our customers expect from our brand.” Loyalty to Trollans-
When Tesco’s opened in Portstewart, a lot of Supervalu’s customers started shopping at Tesco’s, this was because Tesco’s was bigger and was generally cheaper. The majority of the customers that come to Supervalu each day are loyal to Trollans shop. This is because they would have originally known Charlie Trollan who started the shop as he was very well known within Portstewart. Although Charlie sold the shop a few years ago, some of his customers have stayed loyal to supporting his shop.
Due to Tesco and Asda expanding their operations in N.I in recent years, Supervalu has recently had to create a new promotions line to win back their old customers. This line is the Tesco’s price match guarantee. This line offers 1000’s of goods at the same or less than the price they would cost in Tesco’s.
Apple is one of the biggest and most recognised companies in the world. 75% of people in the U.K aged 18-30 own at least one apple product. The apple logo is placed on all of their products (usually at the back). The reason apple is so successful is because.
Easy to use-
Jobs was a stickler on this point. While industrial design is a critical component of any product Apple makes, if it is not easy to use, it is considered worthless to the consumer. This is what drove the company’s user-interface designs from Day 1 and is still the mantra pushed to the software and hardware engineers every day they go to work. All of the products they create have to be intuitive and easy to understand and learn. As technology has become more intricate and users want more features, the task of keeping things simple is sometimes difficult. And Apple creates tools for power users and rookies, which can mean a broad range of ease-of-use issues.
Keeping things simple-
Apple is successful is because it minimizes the decision making process for the consumer by making things simple. In their stores, they have to have as so many different models of each product available, that makes it hard for his staff to be really knowledgeable about all of them all of the time, and their customers just have too many options to choose from. The product software is easy to use and has the same layout across all devices, this makes it easy to use all their products when you know how to use one of them. This software has been copied by so many competitors.
Great customer service:
Apple has great customer service in their stores. The staff in the stores are very appreciable and know everything you need to know about anything they have to offer. The help you decide which model is best for the consumer and helps you learn to use it. They also offer technicians that fix any problems with the customer’s product if they bought it within a year of buying it.
Two years ahead-
This is the one that scares Apple’s competitors the most. While those competing with Apple are just getting products to market that are competitive, Apple is already working on the products at least two years out. For example, the new iPhone that will most likely go to market in October was designed and signed off on two years ago. The same goes for the iPad. The new iPad was signed off on two years ago. The one that’s being worked on now we will probably see in 2016. This is a nightmare for Apple’s competitors and will continue to be for some time.
Definition of relationship marketing
Relationship marketing is marketing activities that are aimed at developing and managing trusting and long-term relationships with customers. In relationship marketing, customer profile, buying patterns, and history of contacts are maintained in a sales database e.g. Tesco’s club card.
Explain it in detail
Relationship marketing was first defined as a form of marketing developed from direct response marketing campaigns which emphasizes customer retention and satisfaction, rather than a dominant focus on sales transactions. As a practice, relationship marketing differs from other forms of marketing because it recognizes the long term value of customer relationships and extends communication beyond intrusive advertising and sales promotional messages. With the growth of the internet and mobile platforms, relationship marketing has continued to evolve and move forward as technology opens more collaborative and social communication.
Why is it important?
Customer relationships are the lifeblood of every good company. Two-thirds of customers switch from one company to another because of a perceived attitude of indifference from the former company, it makes sense to focus as much attention on customer retention as you do on customer acquisition. Develop a good relationship marketing program that takes into consideration both customer relationship marketing, and customer acquisition through relationship marketing.
How is relationship marketing used by your two organisations to market products?
Supervalu- Relationship marketing is used by Supervalu through having nice staff. Supervalu stores are often small and are used by locals in the area. The staff eventually get to know the regulars in the shop and bond with them. This makes the customer loyal to Supervalu because they feel welcomed at the shop and enjoy shopping their.
Apple- Relationship marketing is used by Apple through their customer service. This is one of the main factors why apple buyers come back to buy more from them. Apple uses this in their adverts to show that they are friendly to their customers.
Growth strategies- such as Ansoff’s Matrix
Definition of the Ansoff Matrix-
The Ansoff matrix helps to understand a marketing or business development strategy. A business can choose which strategy to employ, or which mix of strategic options to use to best achieve its objectives. The Ansoff Matrix is usually used after marketing has been carried out. The Ansoff Matrix identifies four distinct strategies that a business can employ to grow its business.
Draw the matrix
Explain the Ansoff Matrix and each of the four categories
Market Penetration: Market penetration is when a business sells more of its existing products to more of their existing type of customers. To achieve this, the business must improve their existing products, advertising of the products, distribution and their pricing.
Product Development: Product development is when a business sells new products to their existing type of customers. To achieve this, the business must make use of the marketing mix.
Market Development: Market development is when a business sells existing products to new types of customers. To achieve this, the business may have to change the product in slight ways to meet other countries requirements.
Diversification Strategy: A Diversification strategy is when a business sells completely new products to completely new customers. To achieve this successfully the business must research into the new market they are going into.
Why is it important?
The Ansoff Matrix is important because it helps business owners to analyse the potential for each of the growth strategies. A business that operates in an expanding market can grow through market penetration. However, a business in a mature, stable market may choose to grow either through market development or product development depending on its internal strengths. If neither of these offers sufficient potential, a business may consider diversification to achieve further growth.
How is the Ansoff Matrix used by your two organisations to market products?
Supervalu- The Ansoff matrix is used by Supervalu when they release a new range of products to their stores or building e.g. a bakery in one of their shops. This is to establish who they are selling the new/existing products to and how they are going to do it.
Apple- The Ansoff matrix is used by Apple to understand who they are selling to when they are releasing a new product and what type of market they are entering into.
Conclusion -Task 3
In this Section of your report compare the differences and similarities between the marketing techniques used by both products/product ranges.
Similarities- A similarity of how Supervalu and Apple use growth strategies is that they both would use several types of advertisements to try and boost their sales of goods. Such as TV advertisements, social media advertisement and use their own websites as a form of free advertisement.
Differences- A difference between how Supervalu and Apple use growth stratagies is that they each would be expanding their business into different markets. E.g. apple could expand into making TV’s although realistically Supervalu would never expand into that kind of market. They would most likely expand into making clothes.
Similarities- A similarity of how Supervalu and Apple use branding is that Apple and Supervalu both have their logo on all of their products. This makes their own products unique to them and often in Apples case why many of their customers buy their products.
Differences- A difference between how Supervalu and Apple use branding is that Supervalu uses their logo so that customers can tell that they are cheaper products than their competitors, the Supervalu logo usually represents a less quality product at a cheaper price. The Apple logo is used to represent the highest quality product that a consumer can buy and a very trusted company.
Similarities- A similarity of how Supervalu and Apple use relationship marketing is that they both offer great customer service this helps both companies to gain loyal customers.
Differences- A difference between how Supervalu and Apple use relationship marketing that apple offers a repairing service for there goods that makes their customers want to come back to them. Supervalu hasn’t got this, Supervalu uses another type of Relationship marketing and this is by being a local and friendly shop.