MARKETING PRINCIPLES
INTRODUCTION
This study has been carried out to understand marketing principle and devise a marketing plan for ICT Ltd. (UK). Marketing process has been explained with one example of promotion mix. An evaluation has been made for cost and benefit analysis of marketing orientation for ICT. Micro and macro factors influence marketing decisions of ICT limited have been explained. targeting strategy for new tablet for ICT, meaning and importance of buyer behavior, meaning of positioning and new positioning for Tablet, product development to sustain competitive advantage for ICT, extended marketing mix for tablet, the differences in marketing products and services to businesses rather than consumers, the differences between international marketing and domestic marketing have been the other points that described the aspects of marketing principles.
Company Profile – ICT LTD.
ICT Ltd. is a Microsoft Certified Partners giving ICT solutions as well as IT Support all over Midlands, Telford, Shropshire, Birmingham as well as Mid Wales of UK. The company’s customer focus philosophy situates excellent services to the customers at the forefront of the business. The company has many years of experience to provide and manage IT related services to the clients (UK ICT Ltd., 2010).
Organizations differ in their perceptions regarding business as well as their orientations towards such market place. It could lead towards the appearance of several marketing concepts.
SEGMENTING, TARGETING AND POSITIONG
1.1 Meaning of Marketing Process
Marketing remains is a process of management which identifies, expects as well as satisfies consumer needs profitably. Marketing remains a social as well as managerial process through which persons as well as groups attain what they need or require by means of offering, creating as well as exchanging products of value with others (Kotler and Armstrong, 2011).
Marketing process must be conducted through some well-thought out viewpoint of effective, efficient as well as responsible marketing. Six competing concepts are there under which organizations carry out their marketing activities (Marketing Pundit, 2015).
Marketing Mix
According to Kotler & Lee (2007) the concept of marketing mix is understood as a strategy applied in performing marketing activities. Such marketing mix remains a planned package of components that would support such organization to reach its target markets as well as specific objectives.
Promotion mix includes activity which marketers communicates with consumers for acknowledging such product. Marketer requires planning strategies towards attracting such present as well as potential consumers towards such product. Product awareness among wholesalers, suppliers, retailers as well as others could be made by means of several communication techniques. Commonly, customer awareness could be developed by means of publicity and company image (Kotler & Lee, 2007). Basically the key the marketing communication objective is about persuading customers to buy company’s products. Marketer towards a communication process seeks target audience, set communication objectives as well as designs communication channels towards promoting such product. Such message towards promotion could be developed to obtain attention, hold such interest, and stimulate desires as well as to perform action towards buying. It is regarding what to communicate, how to communicate as well as when to communicate- are the answer through format as well as communication sources. Suitable tools should be determined towards promotion. Usually common tools remain sales promotion, advertising, sales force, public relation, publicity, direct marketing (Kotler & Lee, 2007).
Marketing process consists marketing mix that need to be effective to fulfill certain marketing objectives. The main consideration is to convince customers through an effective message for the product of the company.
1.2 Cost and Benefit of Marketing Orientation
The concept of market orientation may be stated as a method of organizational culture in which employees remain committed towards constantly creating superior customer value, or like a system of marketing function which leads towards better performance.
According to Hafer and Gresham (2008) in attaining customer focus, an organization need to have a high level of market orientation that encourages a set of shared values as well as beliefs regarding putting such consumer first as well as reaps outcomes in a manner of a strong competitive advantage, lowering costs as well as increased profits. This is done through constantly creating superior customer value which a business generates for making long-run profit. A marketing campaign or sales activity that are for short term could increase sales, but, such organizational image as well as creating repeat-customers may only changes over time beside reputation as well as word of mouth. Many ways are there to measure the level of market orientation.
According to Grönroos (2006) research done by several years could conclude that market oriented organizations accomplish better compered to organizations that remain less market oriented. It concentrates upon adapting their products as well as services to meet expectations and needs of their consumers rather than those that remain product oriented as well as emphasize on creating a product that could be marketed as well as positively sold then. Cost and benefit may be measured like a set of behavior or activities linked to gathering market intelligence, market intelligence broadcasting cross-functionally in an organization as well as action responses depending on such intelligence.
Marketing orientation is done through constantly creating superior customer value which generates business and make long-run profit.
2.1 Micro and Macro Factors Influence Marketing Decisions of ICT Limited
Micro Environment:
Marketing functions under several environment conditions that impact marketing decisions. Such Micro environmental aspects remain aspects which are within its vicinity (Mitchell, 2005):
Customers:
Smith et al. (2006) have indicated that the marketing plan of the firm aims towards attracting as well as retaining consumers by means of offering products which fulfills their needs and wants by ensuring exceptional customer service.
Suppliers:
According Mitchell (2005) such supplier of an organization might change its competitive position as well as marketing capabilities. Their relationship between such organization as well as suppliers enhances an influence equation between them. Such suppliers have direct effect on its marketing function. Like an instance, rise in prices of raw material prices would impact marketing mix of the organization.
Employees:
When an organization engages staff with pertinent knowledge, motivation, skills etc. this would finally impact the quality of product, customer service etc. that are components of marketing mix. Shareholders: Shareholders remain those people who make investment in an organization. Thus, the marketing plan might require to be developed on the basis of available funds that are generating from shareholders. Thus, relationships with such shareholders must be managed judiciously for availing finance which might create long term success (Smith et al., 2006).
Media:
Positive attention through media may develop an organization whereas on other side, negative attention through media may ‘break’ an organization. Therefore, organizations require managing such media sensibly so as to such media will assist in promoting the positive effects regarding such organization (Mitchell, 2005).
Macro Environment
According to Sage Pub (2015) the factors of macro environment is visible to the organization as well as it is relatively uncontrollable. Macro environmental aspects will impact indirectly a company’s marketing decisions.
The macro environmental factors functions externally to ICT and that remain pretty uncontrollable. These macro environmental is having indirect influence on ICT’s marketing activities (Sage Pub, 2015).
Demographic factors:
Marketers evaluate and monitor because population from people formulate markets. Thus marketers remain concerned in size as well as growth rate of population towards various cities, regions as well as nations. Additionally, the company should also understand age distribution, education levels, income levels, ethnic mix, household patterns etc. that enables marketers towards segmenting entire population.
Economic factors:
Such economic environment comprises aspects that impact buying power as well as spending pattern or power of the customers. These economic aspects might be interest rate, government regulations, inflation rate etc. Thus, this is vital to give higher focus on key trends as well as spending patterns of the customers if designing marketing plans.
Physical factors:
Physical factors includes both renewal as well as non-renewal resources of the earth. Marketers must be well alert about such resources towards natural environment.
Technological factors:
As the Technology is developing in fast scale in which it is crucial towards organizations in adopting changing technology to face the tough competition. Technology could play a vivid role to reshape marketing actions (for an instance, social media marketing is developing like an influential tool of marketing).
Political and Legal factors
Developments towards legal and political area highly impacts decision of marketing in which comprehensive marketing decisions may not be considered without considering this thing, such political party towards power, pressure groups, government agencies, laws of the land etc. These forces generates a huge pressure upon marketing management.
Social and Cultural factors:
Such social forces makes an effort to create marketing as socially responsible matter. It concentrates upon the fact that ICT must take an initiative in eliminating socially harmful products as well as creates which is useful towards society. Marketers will require giving careful attention towards cultural aspects like values, norms, beliefs of the society (Sage Pub, 2015).
To attain success in target market, it is necessary to know various micro and macro environment according to which market segmentation strategy should be done.
2.2 Segmentation Criteria
Market Segmentation
According to Kotler & Armstrong (2006) Market Segmentation denotes segmenting a market with few commonality, resemblance, or kinship. It is the relationships of a market segment which share somewhat commonly. Such segmentation purpose remains focus of marketing energy as well as force on market segment or subdivision to avail a competitive advantage in such segment. Such objective of segmentation research remains analyzing markets, finding niche prospects as well as capitalize upon a superior competitive position.
Market segmentation is necessary to understand consumer market and attain competitive advantage through generating profit.
Target Marketing
Smith et al. (2006) have stated that such use of target marketing remains dependent on such premise that those that are targeted could have a pronounced affinity towards products or brands. Through emphasizing such affinity, marketers would successfully fulfill their expected outcome like purchase intent, attitude towards the ad, brand as well as product. An explanation about why such targeting functions remains because of shared cultural knowledge demonstrated in marketing communication. Other ways, the achievement of target marketing remains focused through an inference of consumers of similarity between certain factor of communication effort of ICT as well as themselves.
Target marketing is very important that one should initiate for launching a new product. Without targeting a market brand promotion may be irrelevant as consumer usage pattern is not same for all markets.
2.3 Targeting Strategy for New Tablet for ICT
With the aim of providing convenience towards customers, such firm must determine correct place, correct time as well as right quantity which must be circulated. Like a company that has a suitable market share, such company remains well positioned to the market. Thus, this is critical towards developing an effective system of distribution towards their modern offering, the TABLET. Consequently outcome of a busy way of life of people, this is significant of creating high accessibility of products. Quick accessibility has a vital role to create a positive attitude upon the minds of customers. Like a company that concentrates upon augmenting their international existence, ICT Limited will require looking towards more suitable distribution methods towards geographically distributed consumers. ICT Limited must create a distribution process that will make shipment of their products towards any segments of this world that enhances consumer convenience. These convenient distribution process will lead towards better satisfaction among customers, therefore leads towards creating a greater possible sales (Kotler & Armstrong, 2006).
2.4 Meaning and Importance of Buyer Behavior
According to Bruner et al. (2005) consumer behavior denotes towards buyers those are buying towards their family, group or personal usage. Buyers remain essential partners to exchange product. Without them, marketing relations will come to an end. They have the concentration towards successful marketing; customers wants and needs remain reason towards marketing. It is necessary to have an understanding of consumer behavior, such market offering may not possibly remain tailored towards demands of possible buyers. Once potential buyers could not remain satisfied, exchange falters as well as marketer’s goal may not be met. Provided that buyers are having free choice as well as competitive offerings through which to select they are finally controlled by marketplace.
Understanding buyer behavior is significant to modify a product offering and maintain relationship. By knowing buyer behavior a marketer can successfully fulfill marketing goals.
2.5 New Positioning for Tablet (ICT)
Positioning remains an effort towards impacting customer perception of a brand or product towards the perception competing products or brands. The objective is to get a clear, unique as well as profitable position towards minds of the consumers.
Being a leading seller of technological devices in a market having a history from 1990’s ICT Limited that is having a competitive advantage compared to any new market players because such company remains well established in UK. Such modern business environment remains a dynamic in which competition amongst organizations are remains at its utmost highest levels (Baines et al., 2008). Every firm looks for adopting latest technology with an intention to provide improved quality products for meeting customer satisfaction. Through such busy schedule of individuals as well as with the development of technology, such TABLET introduced by ICT Limited might be taken as a powerful technique that would allow ICT Limited towards expanding their market share. Positioning has a vital role towards a product’s success in which positioning remains a process of obtaining a positioning in the minds of consumers. TABLET must be positioned towards minds of customers like a highly portable device that facilitates lives of the people on the go. This must be positioned like a device that might be taken all over the place assisting lives of the people.
PLANNING, MARKETING MIX
3.1 Product Development to Sustain Competitive Advantage for ICT
According to Macdonald et al. (2005) marketing through its concentration on the customer is having a great achievement. Tools like conjoint analysis, perceptual mapping, voice-of-the-customer analysis, intention scaling, portfolio optimization as well as lifecycle forecasting remains common use presently. Organizations which efficiently and constantly create new products which are according to the needs and wants of end customers remain more likely to prosper. Direct communication through such consumers let organizations to learn through consumers as well as customized products towards their requirements. Such new challenges need a process of product development which is integrated, almost instantaneous, information intensive as well as creates a strong application of new technologies like Internet. Such new version may be termed as new vision i4PD: instantaneous, integrated, information as well as Internet.
3.2 Product Distribution and ICT
According to Macdonald et al. (2005) distribution has a crucial role towards enhancing such convenience of the customers, henceforth distribution looks like a major competency towards organization, Distribution comes under ‘place’. Marketing mix classification focuses on building appropriate system of distribution for enhancing accessibility of the consumers finally leading towards creating greater revenue. In case of providing convenience to consumers, such firm must decide right time, right quantity and right place which must be dispersed. Like an organization that has a good market share, such company could be well positioned towards market. Thus, this is crucial towards developing an effective distribution system for their new TABLET offering. Consequently, in the people’s tough schedule, this is significant of creating high accessibility of products. To attain a positive attitude from customer easy accessibility has an essential part. Since the company that emphasizes on improving their international performance, ICT Limited is expected to explore more convenient approaches of distribution towards geographically distributed customers.
New positioning for the TABLET will be beneficial for the company that might build a distribution system and will be useful for their product transport to increase convenience of the consumers. Such distribution systems that gives convenience will create towards better customer satisfaction, therefore, leads towards creating higher potential sales.
3.3 Setting Price to reflect an organization’s objectives as well as market conditions
Prices may be set as per the objectives of the organization as well as market situations in mind.
Managing an organization would critically evaluate such market as well as set objectives of the organizations. This will then determine what products could be worth following to achieve the expected organizational objectives. But, to attain organizational objectives effectively as well as efficiently, this is utmost significant that the company arise with a right price. Thus, Right price denotes towards a price that will provide true value towards money, organizations will also look towards market conditions with context to performance of competitor as well as pricing to set their individual measure of success. It is the cause that one sees several analogous products in a market having a related price range. Standard prices towards market are generally set through standard players of the industry. The new player entering market will carefully require examining the conditions of the market and setting a low price in comparison to products of the competitor to attract consumers (ACCA Global, 2011).
3.4 Product Promotion to Achieve Marketing Objectives
Aaker (2004) attaining marketing objective needs multitude of integrated promotional actions. Promotions remains one of the vital aspects in the marketing mix in which this focuses upon strategies, an organization might provide information as well as generate awareness regarding company offerings. Particularly, promotional activities that comprises, advertisement strategies, sales promotion, personal selling etc. To market a product, an organization will engage through various promotional functions. Every such activity must be incorporated that would facilitate every activity, making a win-win condition.
Consistency: To develop organizational brand, increasing market share as well as attain long term loyalty, such organization must give steady messages. Every promotional activities must give the similar message as well as no deviation should be there (Aaker, 2004).
Co-ordination:
Marketing as well as promotions must be the outcome of evidently planned out strategies. Such timing, longevity, selection of promotions by means of several media remains crucial to reach consumers and influencing them (Aaker, 2004).
Reach: according to Baines et al. (2008) developing a promotional plan, a company would need considering such reach of a target market as well as the way media assists in gaining coverage. Reach shows the overall number of consumers that one could get through such messages of media mix. Generally organizations apply many promotional tools for expanding the level of reach.
Repetition: For growing level of effectiveness, this is significant to hit every consumer numerous times. It might be done through incorporating promotional activities. For an instance, along with paid (Baines et al., 2008).
Product promotion may be effectively done to reach every customers through brand development, media coverage, repeating ads. Many tools are used by the organizations to attract customers.
3.5 Extended Marketing Mix for Tablet
In case of service marketing mix this may also be known like an extended service marketing mix as well as remains an integral segment of a service blueprint design. Further components of the extended marketing mix that are as follows (Baines et al., 2008):
a) Process
b) People
c) Physical Evidence
Process: generally a product would move through various processes until it is successfully completing. It includes the several processes by which such TABLET requires going through till it arise as a final product.
People: the achievement of a company is highly dependent upon people. Only as providing a quality product, this is too crucial to give an appropriate customer service that lead towards customer delight as well as ultimately better sales. Particularly the component- ‘people’ in marketing mix has a vital role with context to TABLET as consumers look for appropriate customer service through technological device providers. ICT must give service quality as high preference for making TABLET, an effective product towards the market.
Physical Evidence: Such consumers must be given a correct picture of a product which they are going to experience. As TABLET is new for a market, people will be unwilling to buy such product. ICT Limited may make use testimonials through its original customers that will give evidence towards success of TABLET. Additionally, the first impression about TABLET must be generated through way of product presentation. Thus, ICT Limited must provide great consideration towards its packaging as well as presentation of products within their retail stores.
MARKETING MIX FOR TWO DIFFERENT SEGMENTS
4.1 Plan marketing mixes for two different segments in consumer markets
It has been perceived that both youth and households use audio and visual systems in a greater degree in which both are two different segments – which has been one of such new innovations as well as emerging technique in the market. While youth is considered, they remain too specific on such features henceforth this is significant to build a portable audio system (iPod) having high quality features. But, youth remain too concerned regarding such prices therefore this must be priced towards an affordable rate. Additionally, promotions may also be utilized to generate more awareness throughout the market. In other ways, households remain better linked with hi fi audio and visual systems having large screens as well as additional sound effects. Would need to pay focused attention upon the price as there are many competitors in a market. Additionally, this is too significant to ensure that this may be accessible easily by the customers (Chikweche and Fletcher, 2012).
Application of right marketing mix is essential to generate consumer awareness for different product ranges. This is important to reach customers in segmented market.
4.2 The Differences in Marketing Products and Services to Businesses Rather Than Consumers
B2B marketing i.e. Business to Business marketing differentiates from Business to Consumer (B2C) marketing.
Business to Business: According to Kumar and Raheja (2012) in case of marketing product to Business, such marketing remains a product for a business, one wishes to emphasis much upon logic of such product. It might be conducted through highlighting severely on product features. In case of business to business marketing concept, no or little emotion is involved in buying decision. Such B2B market is having a desire for knowledge as well as they remain information seekers. Hence, this is significant towards more in-depth having marketing materials.
Business to Customer: In case of business to customer, marketing will require focusing greatly on the product benefits. Such decisions remain emotional. They will look for convenience therefore the application of several distribution channels remains greater significance. Customers will require evidently pointing out the advantages obtained through use of such product (IJSTR, 2015).
Business to business marketing remains practicing organizations enabling selling their products to other organization or company (Pitta et al., 2008). It is occurring in b2b market however, in case of b2c market retailers or wholesalers sale their products or services to the end customer or final customer.
4.3 The Differences between International Marketing and Domestic Marketing
According to Trade Start (2015) conducting international business is not similar as carrying out business at domestic area. New skills are there to learn as well as new knowledge to acquire regarding such country that one would operate into. One would require learning regarding various laws as well as regulations such buying habits of various customers and change marketing strategies as well as materials to appeal towards new country that one is entering.
According to Trade Start (2015) both the cultures are different in domestic and international business and comprehending both social as well as business culture of other country remains the first significant factor towards success. Culture describes everything that a society performs through its business practices, its response towards marketing and advertising for negotiating sales. In case of domestic marketing no language barrier is there as well as getting and interpreting data through local marketing trends as well as consumer demands remains easier as well as faster for carrying out. International marketing needs further time and effort to grasp local language and marketing materials. This is very risky also without any doubt as international market remains too uncertain as well as a company should always remain ready towards changes which might suddenly happen.
It needs a greater level of commitment to be successful towards an international market as being a new environment. So it is understood that competition will be tougher in foreign markets compared to domestic market which is prospective to remain more dynamic as well as complex compared to experiencing in domestic markets.
CONCLUSION
Finally it can be concluded now Marketing remains a social and managerial process through which persons and groups attain what they need or require by means of offering, creating as well as exchanging products of value with others. To attaining customer focus, an organization require having a high level of market orientation that encourages a set of shared values and beliefs regarding putting consumer first as well as reaps benefits through a strong competitive advantage, lowering costs as well as increased profits. Segmentation purpose is to focus on marketing energy as well as force on market segment or subdivision to avail a competitive advantage in such segment. ICT Limited should design a distribution process that will make shipment of their products towards any segments of this world that enhances consumer convenience. TABLET must be positioned towards consumers’ mind as a highly portable device that facilitates lives of the people on the go. About price setting, standard prices towards market are generally set through standard players of the industry. The new player entering market will carefully require examining the conditions of the market and setting a low price in comparison to products of the competitor to attract consumers. In case of business to customer (B2C), marketing will require focusing greatly on the product benefits whereas Business to business marketing remains practicing organizations enabling selling their products to other organization or company. The difference between domestic marketing and international marketing is that international marketing is highly impacted by culture when preparing marketing materials.
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