Marketing Principle

Table of Contents

Introduction: ...............................................................................................................................3

Task 1 .........................................................................................................................................3

1.1 Explain the various elements of the marketing process ..................................................3

1.2 Evaluate the benefits and costs of a marketing orientation for Ferrari. ...........................5

Task: 2 ........................................................................................................................................8

2.1 Show macro and micro environmental factors which influence marketing decisions ..........8

2.2 Segmentation criteria to be used for products of Ferrari in different markets .................... 10

2.3 Elucidation of a targeting strategy for Ferrari ................................................................... 11

2.4 Demonstrate how buyer behavior affects marketing activities in different buying situations

.............................................................................................................................................. 12

2.5 Propose new positioning for Ferrari ................................................................................. 13

Task: 3 ...................................................................................................................................... 14

3.1 Explaining how products are developed to sustain competitive advantage ....................... 14

3.2 Explaining how distribution is arranged for customer convenience .................................. 15

3.3 Explaining how prices are set to reflect an organization’s objectives and market

conditions. ............................................................................................................................. 16

3.4 Illustrating how promotional activity is integrated to achieve marketing objectives.......... 18

3.5 Analyzing the additional elements of the extended marketing mix ................................... 19

Task: 4 ...................................................................................................................................... 20

4.1 Marketing mixes for two different segments in consumer markets for Vodafone UK. ...... 20

4.2 Illustrate differences in marketing products and services to businesses rather than

consumers for Vodafone UK. ................................................................................................ 21

4.3 Show how and why international marketing differs from domestic marketing in the case of

Vodafone UK. ....................................................................................................................... 22

Conclusion: ............................................................................................................................... 23

References: ............................................................................................................................... 24

Introduction:

Consumer needs and wants are filled with market offering of products and strong customer brand

engagement. In organizations importance of marketing process, orientation elements, STP,

Marketing Mix, Consumer Insights are being illustrated here. Above all the role of marketing in

creating values for customers and ways of maintaining strong brand loyalty and customer

engagement with practical examples are described in this assignment. Authoritative achievement

to a great extent relies on upon the dynamic promoting techniques it takes to maintain in the

aggressive commercial center. On the off chance that division, focusing on and situating are by

and large appropriately met then authoritative achievement can't be halted. In the long run

creating client driven showcasing system, appropriate utilizing of promoting blend and blend of

value item can clearly get an association to high.

Task 1

1.1 Explain the various elements of the marketing process

Marketing can be defined as a set of actual and potential buyers and sellers. Elements of

marketing process are being illustrated as below:

Figure: Elements of the marketing process (self-creation)

Process 1: Understanding the marketplace, consumer needs and wants:

Marketing process starts with this step. Here market place is being segmented & well researched.

Every product has its own set of target market, segmented audiences, potential customers. This

process initiated after customer needs and wants.

Needs wants & Demands of Customers:

Process 2: Design a consumer driven marketing strategy:

Segmentation, Targeting & positioning come in this process. Marketer have to analyze the type

of the product. It’s can be heterogeneous or heterogeneous. Then marketer divide the market

according to demographic, psychographic or geographic. Then focusing on the target customers

part come. At last marketer have to position the brand in such a way like a simple particular

sound or simple particular image can convey the massage of the brand (Academia.edu, 2016).

Process 3: Conduction and execution of integrated marketing program:

Marketing Mix comes in this process. Marketing mix refers 4P (Place promotion, product, price).

Product refers the type, quality and amount, place refers the location of availability of the

product for the customers, pricing refers the penetration, premium or comparative pricing

strategy. At the end promotion refers the marketing campaigns which have undertaken in order

to increase the brand value and customer engagement with product (Scribd, 2016).

Process 4: building profitable customer brand relationship:

Rather than increasing market share and sales a farm needs to perform certain responsibilities to

its customers and for society. Corporate Social Responsibility (CSR) comes in this point. It

refers, firm has certain duties towards the society and its faced social problems. Firm performs

such responsibilities and increases its brand value and customer satisfaction in particular

(Academia.edu, 2016).

Process 5: Capturing value & creating customer equity:

Customer Lifetime Value term comes in this point. Product has five life cycles:

i. Development

ii. Introduction

iii. Growth

iv. Maturity

v. Decline

Market value, sales, advertising cost differ from one stage to another. All the firms want to

capture the maturity band growth level because this two are the most optimum point of

production life cycle. So, marketing process refers its long-term goal is to increasing its customer

equity by capturing the maturity and growth stage of production life cycle (Academia.edu, 2016).

1.2 Evaluate the benefits and costs of a marketing orientation for Ferrari.

Business organization builds products, marketing campaigns & strategies on the basis of its

focused orientation plans. Here marketing orientation refers that business organization need to

give the customer what they want. Marketing orientation is being undertaken when the market

and the product are too heterogeneous.

Figure: Ferrari portrait (Ferrari official)

Normally there is huge competition exist in market oriented strategy. Among all the macro

environmental factors, political factor exercise most influences on the business. The benefits and

costs of a marketing oriented strategy for Ferrari Premium Car industry is illustrated as

following:

Figure: The benefits of marketing oriented strategy (self-made)

Market oriented campaigns and initiatives are basically customer centric as there are lots of

brands out in market & customers will buy the product which has comparative advantage. This

process is focused on customer needs & Ferrari gives essentials to its customers. Moreover, this

can create market value as well as create a buzz among the existing and potential customers

which leads to an increase in customer loyalty and equity. Such process can also play an

effective role in competitiveness over market competitors and challengers.

Figure: Ferrari unit sold (marketing orientation results,2015), source: Ferrari.uk-2015

On the other side, marketing oriented strategy development has some costs. To build such long-

term strategy it requires huge cost research on market potentials, common threats, external

environment, next move of competitors & so on. After research part, when the product is being

manufactured, additional prices are added. Here small organizations can’t take such big initiative

like Ferrari. Moreover, risk lies, if the existing consumers don’t accept the new product line then

brand loses its reputation. This may happen because different customers have different mindset

and choices.

Figure: The costs of marketing oriented strategy (self-made)

Task: 2

2.1 Show macro and micro environmental factors which influence marketing

decisions

Business builds and executes their activities under micro and macro environment. These

environments have multifarious factors which influence organizational marketing decisions to a

great extent.

Micro environmental factors influencing Marketing decisions:

These environmental factors influence on the root level of marketing decision making. These

factors are small enough to fit in any futile sector but strong enough to exercise impact on big

decisions. Some of the factors are being illustrated as following:

Consumers: Consumers are the key focusing factor of any organization. Ferrari retains its

consumers with great premium Car industry services. Ferrari contains one of the most premium

market in entire car industry. Good customer brand engagement can mobilize organizational

market share as well as sells (Scribd, 2016)

Personnel: Personnel of organization need to be very skilled, adroit, motivated in order toensure

that he or she is giving their best on their day to day organizational performances.

Suppliers and Intermediaries: Another important sector of Micro environment is the suppliers.

Organization should have good supply chain in order to make business successful (Scribd, 2016).

Competitors: Every business has its own sets of competitors. It’s very important for an

organization to perceive its competitors next potential move.

Shareholders: In order to draw capital from the market place, organization needs to sell shares

to increase capital. Perceiving shareholders wants, their preferences & maintaining their rights

are organization’s one of the most important objective.

Macro environmental factors influencing Marketing decisions:

Macro environmental factors behold longer lasting effect on the organization than micro

environment. Macro environmental factors are being illustrated as following:

Demographic factors: Demographic factors consists of target marketed consumers age, gender,

class, income, location etc.

Political Environment: Among all the macro environmental factors, political factor exercise

most influences on the business. New laws and foreign exchange policy may pass which may

have adverse or optimal impact on marketing decisions.

The technological environment: Modern technologies play an important role in marketing

decision making process. For instances, Facebook, tweeter, YouTube, Instagram have become

the most widespread form of portioning activities.

Cultural Environment: Taking marketing decisions, marketer have to assess the culture of the

country. For instance, rough marketing can’t be prevailing in Arab nations. (Scribd, 2016)

Figure: The macro and micro environmental factors influencing market decisions (Scribd, 2016)

2.2 Segmentation criteria to be used for products of Ferrari in different

markets

Ferrari has different types of products for its diverse customers in Premium Car industry market.

The segmentation criteria used for Ferrari products are illustrated as following:

Geographic Segmentation: Ferrari can divide its target market on the basis of the location,

population size, tropical region, climate, season of any particular geographic area.

Demographic Segmentation: Ferrari can segment the market on the basis of age, sex, gender,

income, color, literacy (Learnmarketing.net, 2016)

Behavioral Segmentation: Ferrari can segment the market on basis of customer reaction

towards similar kind of Premium Car industry products in the market, customers’ expectations,

customer market size and equity. This segment is the most powerful and reliable segmentation

among others.

Psychographic Segmentation: Ferrari can segment the market on the basis of customer’s belief,

thinking, lifestyle, values, class and psychographic elements (Learnmarketing.net, 2016).

Figure: Segmentation Criteria of Ferrari Car

2.3 Elucidation of a targeting strategy for Ferrari

Every organization has its own segmented market to serve. There are so many ways of

penetrating segmented market. Such as Undifferentiated marketing or mass marketing,

differentiated or segmented marketing, concentrated marketing or niche marketing. Ferrari

Premium Car industry brand follows segmented marketing strategies. As because this Ferrari

brand has so many diverse product for its diverse customers, so Ferrari have to take different

segmented marketing strategies in order to reach Target Group. After research part, when the

product is being manufactured, additional prices are added. Here small organizations can’t take

such big initiative like Ferrari and make most total sales. Most contemporary marketers have

strong believed on this strategy in today’s competitive environment. Eventually to reach the

target audience Ferrari has to make direct marketing, public relation, sales promotions, sales

promotion, TVC, digital marketing and affiliated marketing. The inevitable result of this market

segment is huge competition. But segmented marketing produces more sales and market shares

than mass marketing (Learnmarketing.net, 2016).

Figure: Differentiated Marketing strategy for Ferrari Premium Car industry

2.4 Demonstrate how buyer behavior affects marketing activities in different

buying situations

Customer Engagement with the brand basically depends on the tangible(prduct) or

intangible(service) value. Here four kinds of buying behavior are being explained as following:

Cultural factors: Cultural factors influences most on the consumer buying behavior. It refers

subjective, social class, religious value etc. viewpoint from product’s positioning criteria. So,

when a marketer undertakes a marketing campaign or a plan he or she needs to focus on the

cultural perspective of the nation (Learnmarketing.net, 2016).

Social Factors: Social factors define reference group, class, family, roles and status are related

with product’s targeting and proportioning activities. For instance, when a TVC is made, the

producer has to think about the targeted social group for which the TVC will convey its massage.

Personal and Motivational factors: There are some personal and motivational factors are

related with consumer buying behavior. Personal factors refer age, income, economic status, life

style.

Figure: The basic way buying decision process works(self-,ade)

2.5 Propose new positioning for Ferrari

Ferrari Premium Car industry currently is positioned as the “increasing fairness and removing

dark spot” brand. If they want to position themselves as something new, then they can come up

with “antibacterial” premium Car industry solutions. Point to be noted, Mercedes Benz also

positioned themselves as dark spot remover as well as antibacterial product in the market. So, it’s

possible to entitle with these two elements. Ferrari currently existing in a Differentiated premium

market where it has heterogeneous products with high comparative advantage. This can be a new

starting for a portion of Ferrari premium Car industry. As it’s very tough to bring entirely new

positioning with such brand where competition is very much intense, Ferrari can come up with

subsidiary positioning strategy (Learnmarketing.net, 2016). Ferrari need to rival Mercedes Ben

and beautiful, BMW, Lamborghini etc. Fundamentally product improvement is one of the key

components to manage upper hand. New element can be added to existing item or new item can

change the current item totally. Ferrari items are more than heterogeneous items. The greater part

of the Premium Car industries has basic characteristics, effects and dealings. Along these lines,

thought era and itemized building ought to be set on the item improvement arrange. Here is a

chart of demonstrating the basic way of item advancement issue and its effect on the promoting

choices on the viewpoint of maintaining upper hand.

Figure: Suited positioning for Ferrari with its competirors(self-made)

Task: 3

3.1 Explaining how products are developed to sustain competitive advantage

Products are being developed by applying multifarious analytical techniques to gain competitive

advantage over the external factors. Ferrari has to compete with Lamborghini, BMW, Benz and

so on. Fundamentally product development is one of the key factors to sustain higher

competitive advantage. New feature can be added to existing product or new product can alter

the existing product completely. Ferrari products are more than heterogeneous products. Most of

the Premium Car industries have common traits, impacts and dealings. So, idea generation and

detailed engineering should be placed on the product development stage. Here is a diagram of

showing the critical path of product development issue and its impact on the marketing decisions

on the perspective of sustaining competitive advantage.

Critical path starts with the project feasibility measurement study, after that preparation of

schedule plan and estimation comes where actual statistical data are represented. Then upper

class needs to give project approval to execute the plan. They can even kick off the project if it

lacks necessary potentials. Then marketers analyze preliminary design of the project.

Figure: Critical path of sustaining competitive advantage for Ferrari products

3.2 Explaining how distribution is arranged for customer convenience

Ferrari for the most part disperses items to its clients by its stores and by online conveyance.

Item dispersion contributes as a media by which an item is appropriated from the store to the

hand of its definitive buyer. Ferrari could organize more activity approach to disperse the items

through:

Channels

Intermediaries

Selective conveyance

Exclusive conveyance

Direct deals

Retailing by means of e-trade or advanced cell

Channel plan and

Channel blend

So here we see that for the customer convenience Ferrari follows different distribution channel

such as direct selling via their own outlet nearly the customer place or premium marketing agent

or different sort of middle men who can translate their product to the hand of the customer and

therefore Ferrari also combine the process of the different channel to ensure smooth operation of

their services in the market and distribute their product to the customer so by combining all the

distribution channel Ferrari can ensure proper distribution of their product.

3.3 Explaining how prices are set to reflect an organization’s objectives and

market conditions.

According to the objective of the firm, there are different kinds of pricing strategies. Marketer

undertakes multifarious pricing in order to sustain competitive advantage through the product life

cycle. Some of the pricing strategies are being illustrated along with their objectives and market

conditions:

Premium Pricing: When companies set high initial price to enter the market rather than

penetrating price, it’s called market premium pricing. It’s the quickest and deep way to attract

potentials customer group and make them potential consumers. premium pricing works as a

Sniper effect for the differentiated marketing tools (Zeepedia.com, 2016).

Figure: Premium Pricing objectives

Prestige Pricing: Prestige or Premium pricing refers to set high price to enter into the market.

Generally, hotel, restaurants, café undertake such pricing strategies to grasp the market. Prestige

pricing works strongly with Niche market.

Market Skimming Pricing: Marketers set price skimming by increasing the product price when

Market is experiencing inelastic sensitivities. It is believed that, lowering the price will reduce

revenue in short run. So, it’s a useful technique for short term policy but not good for long term

if the product is too heterogeneous and lacks proper competitive advantages. Generally, tourism

industry undertakes market skimming pricing (Zeepedia.com, 2016).

Here Ferrari follows prestige pricing in Premium Car industry market to attract its customers.

Figure: Types of pricing strategies according to market condition (Zeepedia.com, 2016)

3.4 Illustrating how promotional activity is integrated to achieve marketing

objectives

Promotional activities are the key factors for maintaining public relations, advertising or personal

selling. Promotional activities are the coordinated form of initiatives use for creating larger brand

value and strengthening brand positioning into consumer black box. Firm spends lots of money

in promotional activities of firms. Promotional activities can be analogue or digital in accordance

with the perspective of the product. Ferrari generally focuses on digital marketing like

undertaking campaigns, hosting events and conducting CSR activities (Zeepedia.com, 2016).

Fundamentally product improvement is one of the key elements to maintain upper hand. New

element can be added to existing item or new item can adjust the current item totally. Ferrari

items are more than heterogeneous items. Marketing oriented strategy development has some

costs. To build such long-term strategy it requires huge cost research on market potentials,

common threats, external environment, next move of competitors & so on. The vast majority of

the Premium Car industries have regular characteristics, effects and dealings. Along these lines,

thought era and natty gritty building ought to be set on the item advancement organize. Here is a

chart of demonstrating the basic way of item improvement issue and its effect on the showcasing

choices on the viewpoint of maintaining upper hand. Basic way begins with the venture

practicality estimation think about, after that arrangement of timetable arrangement and

estimation comes where real factual information is spoken to.

3.5 Analyzing the additional elements of the extended marketing mix

Price, place, product and promotion are the first four elements of marketing mix and the later

three elements are illustrated as following:

Figure: Extended Marketing Mix

Process: Marketing activities are followed by systemic IMC (Integrated Marketing

Communication) planning. It’s a uniformity of offering, product delivery and services. Marketers

need to focus more on the processing aspect of marketing mix

People: People refer the Human Resource Management involves with the decision-making

process of marketing. They expose organizational cultures and efficaciously promote

organizational products and services. Sometimes personnel need training, monetary rewards and

satisfaction to work diligently to meet the millstones made by the upper-class management

(Thimmesch, 2016).

Physical Evidence: It refers intermediaries like suppliers, infrastructures used in production and

promotional activities. Moreover, stores, booth, campaign events are also part of this sector

Figure: The entire Marketing Mix including people, process, physical (Thimmesch, 2016)

Task: 4

4.1 Marketing mixes for two different segments in consumer markets for

Vodafone UK.

Vodafone is being said world’s largest telecommunication community with 65k personnel from

256 operating countries. There are approximately 22k people in UK uses Vodafone. Vodafone in

UK generally follows premium pricing with mass marketing. Two different segments for

Vodafone are as following:

Birthday Holidays

Target Market: Age(12-60) are the prime target of this segment, basically friends, family and

relatives

Segmentation: Mixture of Socio-economic and psychological segmentation

Prices: Market Penetration prices because teenagers are involved.

Product: Heterogeneous

Place: Product sells by random local travel agents

Promotion: Promotion involves digital marketing through Face book, twitter, Instagram,

newspaper, billboards, TVC

Raise Healthy & Live Healthy

Target Market: All ages are targeted who want to have healthier lifestyle but adults are the

prime target

Segmentation: age and lifestyle focused

Prices: Market prestige prices because economically matured adults are involved.

Product: Heterogeneous

Place: Product sells by random local supermarkets

Promotion: Promotion involves digital marketing through Facebook, twitter, Instagram,

newspaper, billboards, TVC

4.2 Illustrate differences in marketing products and services to businesses

rather than consumers for Vodafone UK.

Business organizations consist of intermediaries like whole selling and retailing. The business

markets deal with the larger part of these intermediaries. As markets are geographically

concentrated, business buyers are more adroit than the consumer buyers in terms of

professionalism. When a company takes any promotional activity, it needs to look into

consumer’s insights, potential black box factors. For instance: Jack Dicky the former CEO of Ge

said that “The best way to build your customers is to constantly figuring out how to give them

more from less”. They strive to offer just the right combination of quality and good service at a

fair price. Business consumers exhibit inelastic price behavior and leisure for an comparative

elastic price response (Thimmesch, 2016).

4.3 Show how and why international marketing differs from domestic

marketing in the case of Vodafone UK.

There are multifarious factors in international marketing differs from domestic marketing in the

case of Vodafone are as following:

Currency Price changes: This fluctuation in currency surely needs more attention in

international trade.

Competing Domestic Producers: Sometimes Vodafone needs to compete with domestic

telecommunicate industries which lead to a tough comparative challenge (Thimmesch, 2016).

Foreign Policy: Sometimes changes in the foreign policy often retard in telecommunication and

vice versa.

Figure: Vodafone in UK (portrait)

Conclusion:

Organizational success largely depends on the dynamic marketing strategies it takes to sustain in

the competitive market place. If segmentation, targeting and positioning are being properly met

then organizational success can’t be stopped. Eventually developing customer driven marketing

strategy, proper using of marketing mix and mixture of quality product can surely get an

organization to high. Purchaser needs and needs are loaded with market offering of items and

solid client mark engagement. In associations significance of promoting procedure, introduction

components, STP, Marketing Mix, Consumer Insights are being represented here. Over all the

part of advertising in making values for clients and methods for keeping up solid brand reliability

and client engagement with functional cases are portrayed in this task.

References: