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Marketing Principles are very important for each and every business as they serve as one of the most important factors in the success of the business. Here in this report, principles of marketing have been explained in terms of their importance, macro and micro environment factors, etc. Further the difference between B2B and B2C market and international and domestic market has also been explained by taking the company as ICT.
Marketing is the analysis of current and future marketing opportunities by any particular company and then selecting the target market to create the positioning in the mindset of the people by developing particular marketing mix (Buckley, 2002). As per CIM, marketing is also called as the management process that is completely responsible for identifying, anticipating and satisfying the customer’s requirement profitability. As per AMI, it is also called as a set of activities and the processes that is responsible for creating, communicating, delivering and exchanging offering so that it can create values for the customers, client and society at large.
Marketing Environment Scanning- It is a process that helps an organisation to identify all the internal and external factors that can affect the activities of business. Company uses different processes to scan the marketing environment like the SWOT analysis which is used to find out the internal factors like the strength, weakness, opportunities and threats of the business. Company also uses the Pestle analysis to identify the external factors that can affect the business like political, legal environment, etc.
Marketing Strategy- After identifying all the factors, many opportunities are found in the market that company can easily grab. For that proper strategic plans are prepared with the help of segmentation, targeting and positioning.
Marketing Mix- It consists of the elements like price, place, promotion and place which help the company to present their products or services in the market in the most appropriate way.
Implementation and Control- It is called as the last step of the marketing process and in this the complete market plan that has been prepared is implemented. Results are continuously monitored so that all the long term needs of the customers are made efficiently.
Marketing orientation can be defined as an approach that is applied in the market in order to identify all the needs of the market and customers in it so that all the strategies in the company can be developed according to them and they can be made satisfied (Jobber, 2004). ICT Limited is a technology company in UK that deals with the products related to computers, laptops and other accessories. Products of the company are usually of very high prices. Market orientations that can be applied in ICT are
Product Concept- In this the customers believe that they will purchase the goods which have quality, style, benefits, unique feature and of low cost too. It is important for ICT to consider this aspect as the products are of very high cost and they don’t have some unique features also.
Production Concept- Company generally tries to focus on the production and believes that customers will buy the products that suits al their specification. It will reduce the risk for the company and they will be able to create the products as per needs of marketing but for that heavy market research is also required.
Selling Concept- Company can sell the products in the market by presenting them in the best form with the help of different promotion concepts. Company can only sell the products if they could create the positioning in the minds of people. It will help the company to make them loyal.
Marketing Concept- Company tries to collect the regular feedbacks so that they can gain the perception of the market about their company so that company can make changes as per them.
Cost of Marketing Orientation- Cost of the marketing orientation of the company will be high as they will help to analyze the complete market and then the will develop the product according to them. organisation might have to tolerate the cost for hiring the marketing agencies.
There are different micro and macro factors that can easily affect the business activities of the ICT Limited.
Customers- It is important for the company to develop and create their marketing plan as per the needs and demands of the customers (Smith, 2006). As ICT is launching new tablets and they are also making changes in the products so it is important for them to retain the customers and provide excellent business services.
Employees- They can also include the employees of the company in the decision making processes. They have very high skilled manpower and they have good technical knowledge so they can also contribute in the corporate governance.
Suppliers- The different policies of the company an also affect the supplier, as the price of the products of company are very high so company can make good relation with them in order to get the raw materials at cheap prices. Suppliers can easily influence the decisions of ICT Limited.
Shareholders- Shareholders are most important part of the company and they have influence over the company so it is very important for the company to preserve the rights of the shareholders (Eshun, 2009).
Political Factors- There is different taxation policies in UK which can easily affect the business of the company. The prices of all the products in the company will be dependent on that.
Economic Factors- Economic condition of the UK market is stable at the present but it is still recovering from the great recession of 2007-08 so the company cannot sell the products at much higher rates because of high competition. Market will provide good opportunity to company n order to sell their products (Perry, 2005).
Social Factors- These factors affects the decision of the company as the preferences of the company is changing very fast and now they need the products which are more compact and of high technological advances. So it is important for company to create products as per customers.
Technical Factors- Regular innovations in the market affect the products of the company as the products of the company become outdated after a short period of time. It is important for company to make the products with latest technology to attract the market.
Segmentation can be defined as the process in the market is divided into the different distinct groups according to the similar nature, behavior, taste, etc of the people (Ganesh, 2000). Segmentation is done as per the four aspects and that is the on the basis of people location and geographical area, behavior of the people, psychology and also on the basis of people age, income, etc. The main aim of the segmentation is to provide the opportunity to company in order to target the customers and position the products in their mindset.
ICT is the technological Company based in UK which creates different products like laptops, Desktop PC’s, etc. Recently the company has developed a new product called as the Tablet which is made for the young tech savy people who love to enjoy the new technology products. Company can segment this product on the basis of psychographic segmentation as this segmentation is totally based on the lifestyle and interest of the people. Company has created this product for the youngster and they have different interest, traits as compared to the aged people so it will help the company to easily attract them.
They can also use the demographic Segmentation in which the company can target the people on the basis of their age (Szmigin, 2005). This product is mainly for the people between the ages of 16-30 because these are the people who love to use the new technological products. This segmentation will help the company to create new customers for them. Company can launch the products into different color styles that will help them to attract both female and mate customers. Other than these two segments other two will not work for the company.
Targeting can be defined as the selection of the potential customers whom a business wishes to sell their products or services. Company focuses all their marketing strategy on those particular groups. There are generally three types of the targeting strategies and they all have different effects on the people. In the undifferentiated targeting strategy, company target the market with same marketing strategy, in the differentiated marketing strategy company target the different segments with different targeting strategies and niche targeting in which the company selects a particular special segment and concentrate their marketing strategies on them.
Company designed their particular new tablet for the youngster and according to that they have divided the market (McAuley, 2000). The particular product is made with latest technology and it will definitely fulfill all the needs and requirements of the customers. Although the products is mainly created for the youngster but still the company can use the undifferentiated targeting strategy as they can target the whole market with same marketing strategy which will attract the youngster but it might also attract some of the old age people which will be a benefit for the company.
Consumer buying behavior can be defined as the sum total of the attitudes of the customers attitudes, preferences, intentions ad different decisions regarding the consumer behavior in the market place while purchasing as product in the market. Behavior of the people is highly affected by the different cultural, social and psychological factors, etc. Normally the people follow a particular behavior processes in which consumer recognize the need, and then they try to find the products in the market that can satisfy them. Among the different alternatives they select the best alternatives and then they provide the feedback for that (Jevons, 2000).
ICT deals with different technological products and it can be affected by different buying behaviors of the company. Consumers purchase the technological products on the basis of their psychology and personal factors on the general basis. Their purchasing decision also gets affected by the reviews of their friends, family, colleagues, etc so it is very important for ICT to consider all these factors. Target market of the company is young generation and to attract them it is important for company to plan their marketing activities as per the market’s trend, taste, etc. They have to do extensive market research before doing that (Holt, 2002).
Positioning can be defined as a process in which the company tries to establish a position in the mindset of people so that when they go for purchasing a particular product the first thing that comes to their mind should the product of the particular company. It is very important for ICT to create positioning for the new tablet of the company as it will help them to get the competitive advantage in the business and it will also allow them to differentiate their products from the rest of the customers.
New Tablet of the company can be positioned on the basis of its unique, style, feature and the most advanced technology that will fulfills all the needs of the young people and other people too (Keyes, 2009). They can use various advertising campaigns on the internet, social media because these are the mediums where these young people spend their most of the time. Company can also go for the TV advertising to attract the non young people too. Company will have to do the market research for that so that they can understand the perception of the people about the company as well as the people so that company can transform their services according to that. They can also present the tablet in the market as per the best in security and durability also.
In this particular task, different elements of marketing process and benefits of cost orientation, micro and macro analysis of ICT limited, segmentation criteria and many more things were discussed. It will allow company to take future precautions before launching their particular tablet. It will also force them to target right customer and create good positioning for them which will help them to capture particular market much easily. It might also create competitive advantages for them. However, it has been seen that environment of industry is changing very fast so it might be possible that at the time when company is ready to launch product with selected strategies, some new needs arises or behavior of people changes, etc. It might also be possible that competitor of company launch same products with same strategy so it will harm company on large scale.
Competitive advantage can be defined as the condition of any company which puts them in the favorable position and make them superior in the market (Paul, 2008). In order to develop the competitive advantage it is very important for the company to analyze the market and the competition that exists in it. If the company creates and launch as per the needs of the customers then they can easily create the competitive advantage.
Further, there is a model which is called as the Ansoff Matrix and it will help the managers of the ICT to consider the growth of their business with the help of existing or new products in the existing or new market. It is of 4 types-
For their tablet, company can go for the Product development strategy in which the company launches the new product in the existing market. Company can understand the needs and wants of the market before creating a product so they could know exactly what the entire requirement (Porter, 2011). It will also serve as a base for the company before applying the diversification as they will able to find out all the problems regarding their product in the current market so that they can launch the product in the new market without any hassles
Other than this company can also gain the competitive advantage on the basis of offering the cost advantages to the people which will gain them the new customers. By applying the cost leadership strategy they can launch high quality products at very cheap rates in to the market but for that they will have to make good relations with suppliers in order to get raw material at cheap prices (Grewa, 2012). Company can use the differentiation strategy in which they can promote the product in the market by telling the people that how effective and different their product is from the rest of the competitors.
Distribution is a process in which the company delivers the goods made by them to the final customer with the help of different strategies. It is recognized as one of the most important part of the company as it will create sales for the company. It is important for company to understand that even if their products are good but if proper distribution channels are not available then they will not be able to create hype in the market. There are two types of the distribution strategy which are called as the direct and indirect distribution (Brechner, 2011). In the direct distribution, company directly sells their products to the consumers and in the indirect distribution company sells the product in the market with the help of different intermediaries.
ICT Company is very well known in the field of futuristic products but they don’t have very good direct distribution channel. They can sell the tablet in the market through their website on which people can directly go purchase the product but this will not be enough. The thing that will help the company is indirect distribution channel as the company can elects different retailers all around UK and can sell the products though them. It will help the company to reach more and more people without exerting any extra efforts.
Pricing the product serves as one of the important factor that decides the growth of the product in the market. The target market for the ICT tablet is mainly young generation and they don’t have excess money to spend. So it is important for ICT to follow the correct kind of the strategy. There are 5 types of the pricing strategies which are
As per the product of the ICT, they should use the penetration pricing strategy in which they should launch the product at very low prices so that they can attract the new customers which are young people (Hanson, 2000). It will help the company to capture the market share very swiftly and they can even get the competitive advantage. Later on, when the product becomes popular then they can increase the price of the product by adding some of the extra features.
Creating the promotional activities is very important for the companies as it will help them to create the market awareness about their product and it will also help them to boost the sales of the tablet. There are two types of the promotional strategies which are called as the push and pull strategy. In the push strategy, promotion of the product is done directly for the consumers while assuming the consumers are aware with company or brand. However, in the pull strategy, company uses the activities which motivate the people towards the brand (Converse, 2008).
In the promotional mix, companies can use the different types of the marketing strategies like they can focus on the advertising on internet and especially on the social media websites because these are the two places where people spend most of their time. Company can create contests and many other things to attract the youth towards the product. Other than the internet marketing, company can also focus on the below the line activities in which they can promote the products in the malls of the country and also by sponsoring any event that is for the youth. Further they can also use the medium of television advertising to attract the youth as well as the other people because there might be some people other than youth who are interested in the product.
Other than the 4 important marketing mixes which are price, place, promotion and product, there are 3 more elements of the marketing mix which are equally important and that are process, physical evidence, and People.
In general, there are two types of the business patters which are called as the business to business marketing and business to customer marketing. There is a great difference between both of these categories (Tanner, 2013). In B2B market, company sells their products directly to the corporate houses while in the B2C market company deals with the customers. In terms of the promotions, company likes to handle the B2B clients personally because they play very important part to establish corporate image of the company. So companies generally prefer the below the line activities. However, in case of the B2C market, the main aim of the companies is to gain the market share so they use different types of the promotional styles like the internet marketing, television Ads, etc (Retseptor, 2005). While doing the B2B selling, there is a professionalism involved and people deal in very formal manner on the other hand in B2C market, there are lots of emotions involved while purchasing a product so company have to target people emotionally. In B2B market, main focus of the people is on the features, rate of returns of the products while in the B2C market, the main focus is on the benefits that people will get from the product.
In the domestic marketing, companies do their business in the boundaries of their home country. Companies understand the nature and behavior of the market so they develop their strategies according to the people and enjoy lots of sales (Siomkos, 2009). There is also not much risk involved in the business. Companies are not affected by the fluctuations in the exchange rate. However, business earns only limited profits and they are also not known worldwide.
In case of the International Marketing company sells their product in more than one country. Generally the companies are unaware of the foreign market environment and they are also affected by the different political and exchange rates by the government. International market is very risky but once the company is established they earn unlimited amount of revenues and a good reputation too (Prajapati, 2012).
As per the given scenario, ICT is currently working in the domestic market and they are not handling any risk as per the current market. But with their new product, they can expand in the international market but for that they will have to prepare a lot and analyze all the factors as discussed above.
This particular task represents strategies that ICT will use in terms of pricing, distribution, promotion, product, extended mix, internationals and domestic strategy and B2B and B2C strategies. It will allow company to present product in market with appropriate techniques that might force people to buy product instantly. It will also help company to place its products as per both internationals and domestic market by making different strategies. Company will be able to target both B2B and B2C customers appropriately. However, international market is unpredictable and despite of using best strategies, company might be unsuccessful because there is lots of competition and behavior of people is different in different places. It will also increase work load as company will have to create strategies for both market in different ways.
From the above report, it can be concluded that ICT is an emerging company in the UK’s market and they are planning to launch a new futuristic tablet. To do that it is important for them to follow all the marketing processes in order to successfully present their product. As discussed there are many factors that affect the company and proper marketing mix is also required so that proper market conditions can be understood.
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