Marketing Principle

Table of Contents Introduction: ................................................................................................................................ 3 Task 1: ........................................................................................................................................ 4 1.1.Explain the various elements of the marketing process used in PYMACHE. ...................... 4 1.2. Evaluate the benefits and costs of a marketing orientation in Pym ache: ............................ 5 Task 2 ......................................................................................................................................... 6 2.1. Macro and Micro Environmental factors which influence marketing decision: .................. 6 2.2. Segmentation criteria to be used for products: ..................................................................... 7 2.3 Choose targeting strategies for a selected product/service in PYMACHE: .......................... 7 2.4. Explain how buyer behavior affects marketing activities in different buying situations: .... 8 2.5. Propose new positioning for PYMACHE: ........................................................................... 9 Task 3 ......................................................................................................................................... 9 3.1 Explain how products are developed to sustain competitive advantage in Pymache ........... 9 3.2. Explain how distribution is arranged to provide customer convenience in Pymache. ....... 10 3.3. Explain how prices are set to reflect Pym aches objectives and market conditions: ........ 10 3.4. Illustrate how promotional activity is integrated to achieve marketing objectives in Pymache. ................................................................................................................................... 11 3.5. Analyses the additional elements of the extended marketing mix in Pymache. ................ 12 Task 4 ....................................................................................................................................... 12 4.1. Recommend marketing mixes for two different segments in consumer markets of Pymache .................................................................................................................................... 12 4.2. Illustrate differences between PYM Aches marketing products and services to businesses rather than consumers:............................................................................................. 13 4.3. Explain how and why international marketing differs from domestic marketing: ............ 13 Conclusions: .............................................................................................................................. 14 References: ................................................................................................................................ 15

Introduction: Marketing can be defined as an organizational function which processes for creating communicating and delivering value to customers and for dealing with customer relationship effectively. The assignment is based on marketing principle effective on PYMACHE, which is an upcoming fast food restaurant specializing in Pies, mashed potatoes and other traditional English cuisine The report is divided in to four tasks, where task one describe the various element of the marketing process types of marketing orientation used in PYMACHE. Task two explains the factors and environments of market decision as well as covers the Segmentation criteria to be used for products in different outlets in market. The next third task along with the customer satisfaction survey it will explain how products are developed to sustain competitive advantage in Pymache. Consumer services, products, recommended two mix market segments are discussed on the final task.

Task 1: Explain the various elements of the marketing process used in PYMACHE.

The Marketing Process: The marketing process can be defined as the process of analyzing market opportunities, selecting target markets, developing the marketing mix and managing the marketing effort. In general marketing process involves the interaction between consumers with their needs and desires and the enterprise with its need to satisfy offering (Sherrell and Bejou, 2007). Elements of marketing process: The elements of marketing process are: 1. The consumers: The consumers generally make a certain sacrifices in terms of money and effort to earn a need satisfying offering. The marketers examine consumers needs and then determine if they can be profitably met. In this process market segments are identified and then the enterprise chooses one of them, which is termed as Target market (Odabas, 2000). 2. The Market Offering: The total market offering can be defined in 4 ways: i. Product: Its characteristic enhances its value for the consumers. This consists of packaging, quality, guarantees and after sales service. ii. Distribution: The products move from one producer to consumer through distribution process. It also includes the identification of specific places where the products are being offered for sale. iii. Communication: This includes how to communicate with the consumers about a product or service. Marketing management has for methods of communication such as advertising, personal selling, sales promotion and publicity.

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Pricing: Pricing is fixed at a level that will ensure a satisfactory return on investment. On the other hand price should be acceptable to the consumer to that level that he will be able to buy the product. When decisions regarding marketing methods are specified marketing strategies are need to be determined. 3. The marketing environment: Decisions on marketing process should be based on the investigations made on the environment within which the enterprise operates (Sherrell and Bejou, 2007). 1.2. Evaluate the benefits and costs of a marketing orientation in Pym ache: Marketing Orientation: Market orientation deals with customers needs and by thus the business reacts to what customers want. Customer centric organizations mostly adapt this market orientation process. Costs and benefits of Market orientation: To compete in the business market Pymache should implement the process of market orientation as it has some benefits stated below: 1. Customer centric: One of the major advantages of market orientation is that it focuses on customers needs and benefits rather than what the organization wants for them. Customer centric organization gets the significant time researching on customers satisfactions to get the best understanding about their business (Sherrell and Bejou, 2007). 2. Competitive advantage: Making customers a top priority can give an advantage in competitive business market. When competitors put too much effort in product development and other factors focusing on customers needs can give a better competition to the organization. 3. Technological Advantages: feedback from customers helps the organization to improve its services. This gives an ability to upgrade products more quickly with advanced technology.Organisations that do not make product improvements may not have the
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ability to adapt the new technology sooner. So market orientation is needful in this purpose (Palmer, 2002). Task 2 2.1. Macro and Micro Environmental factors which influence marketing decision: Macro Environment: Behind any decision taken by the organization there is multiple numbers of factor influencing. According to Helm (2004) Macro environment is basically generic in nature and affects the whole business environment. These are: 1. Political: Political macro environment factors consist of tax policies, the availability of government contracts, government-issued safety regulations, and shifts in the controlling political party. 2. Economical: Levels of unemployment, comparative foreign exchange rates, and the state of the global economy may affect the business. 3. Social: Social factors can also influence which products a company manufacturers and where it chooses to spend advertising dollars. 4. Technological: Technological macro environment factors say about how an organization does business. A new type of machinery, a new applied technology and development can help an organization stay modernized and ahead of the market curve. 5. Environmental: The short-term environmental factors like any kind natural disasters may affect the production and supply operations, or even harm company assets. Micro environment: Micro environment can be defined as the factors that influence the companys non capacity to produce and serve the market (Sherrell and Bejou, 2007). These factors are: 1. Suppliers: suppliers to an organization can also alter its marketing capabilities and competitive positions, these suppliers are energy suppliers, Raw material suppliers, capital and labour suppliers etc. The relationship between suppliers and the organization defines a power equation between them.
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2. Market Intermediaries: Every firm always has a number of intermediaries for promoting, selling and distributing their products and services. These are distributing agencies, whole sellers, retailers, market service agencies and financial agencies. 3. Customers: customers can be classified as industrial customers, Resellers, Nonprofit customers, and international customers. This factor plays an important role in developing a marketing strategy (Sherrell and Bejou, 2007). 2.2. Segmentation criteria to be used for products: Market segmentation is a process which involves dividing a large audience into distinct and clear segments that have similar wants or needs. By identifying targeted marketing segment, organizations can use the marketing mix to get a most profitable market (Beny, 2002). The criteria of segmentation are: Identifiable: Before targeting a specific market segment organization should identify the characteristics that makes the consumers in the segment similar. Accessible: After identifying a market segment the organization should have to access the market for communication. Unique: Each segment should be unique in nature and must respond to different marketing mixes to justify their separation as segments. Durable: Organization should have to establish themselves for long term success by identifying segments likely to exist for sometimes. So it should be durable.

2.3 Choose targeting strategies for a selected product/service in PYMACHE: There are three targeting strategies pymache can use for their products: 1. Identifying and analyzing the potential buyers: By identifying their potential buyers Pymache can improve their product or service (Sherrell and Bejou, 2007). 2. Proper selection of target audience: There are many internal and external factors affecting the market performance of an organization. So proper selection of target audience is needed. 3. Proper positioning of the Product: Positioning helps the firm to create a positive image, gain competitive advantage and place the brand in the customers mind to enhance their goodwill and become the most preferred brand.
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2.4. Explain how buyer behavior affects marketing activities in different buying situations: There are four major factors that influence the buyers behavior. These factors are: cultural factors, social factors, personal factors and psychological factors.

Fig.1. Major Factors affecting consumer buying behavior (Source: http://www.mbaknol.com/marketing-management/consumer-behaviour-and-factorsinfluencing-buyer-behavior/) 1. Cultural factors: Cultural factors consist of buyers culture, social class and sub culture. These factors generally depend on organizations value and process of decision making (Palmer, 2002). 2. Social factors: This factor includes consumers group, role, family and status. This influences buyers purchase decision directly or indirectly. 3. Personal factors: This factor includes buyers occupation, lifestyle, economic circumstances, life cycle stage, self concept and personality. This shows that how buyers behavior changes with changes in situation. 4. Psychological factors: This may affect the buyers purchase decision. This includes perception, learning, attitudes, beliefs and motivation.
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2.5. Propose new positioning for PYMACHE: Market positioning means how an organization want their customers to get connected with their products or services according to their perception of their competitors and what marketing strategy should be developed to achieve their goals. It defines how the business, products, and brands fit into the market (Sherrell and Bejou, 2007). 1. Product Positioning: Product positioning is used to present the products in the best possible way to the target audience. It deals with products value, its effectiveness and its improvement according to the customers feedback. 2. Brand positioning: Brand positioning deals with target consumers reason to buy the product. Generally all brand activity has a common goal which is directed and delivered by the brands reasons to buy. It deals with some questions such as: is the brand is significant to the niche market? Is it suitable for geographic market? , Is it sustainable with the consumer? Is it Effective to boost up the company? Brand positioning is the process of dealing with these questions (Beny, 2002).

Task 3 3.1 Explain how products are developed to sustain competitive advantage in Pymache By achieving a competitive advantage an organization can put their business in a stronger position. Several ways are there in which Pymache may think about their product development in order to sustain a competitive advantage. Analyzing the target market: By analyzing the target market and identifying the competitors an organization can achieve a competitive advantage. It mainly focuses on some questions such as: What the organization is selling? Who will consume the product? Who is the competitor? Going through these questions pymache can analyze their target market (Sherrell and Bejou, 2007). Positioning and differentiation: If Pymache can differentiate its product from that of the competitors, then they can position themselves in a prime market level. If they can provide special and unique benefits to their customers, they can maintain their position well. Marketing and Research: the development of new and existing products should be based on customers wants and needs, rather than just realizing the product and waiting to analyze
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if there is any demand for the product or not (Sharma, 2007). A market research should be conducted for this purpose. Pym aches product strategy: The following Product strategies can be used by Pymache: To build quality kitchen hardware for customers To sell the product through a retail channel. Products should be priced per unit. Promoting seasonal food. Maintaining and improving the quality of brands.

3.2. Explain how distribution is arranged to provide customer convenience in Pymache. One of the most important ways to be successful in the business market is to properly market the product to the customers. And in order to achieve that an organization need to know what the target market is (Sherrell and Bejou, 2007). Then once the target market is chosen the organization need to decide the best way to advertise and distribute their products to the customers. They also have to keep their focus on the manufacturer, whose product they are using (Sherrell and Bejou, 2007). Pymache can distribute their product through advertisement. They can do this job online, or in pages through newspapers and magazines or through radio, television and other published mediums. Advertisement can also be done by placing posters on community bulletin boards. 3.3. Explain how prices are set to reflect Pym aches objectives and market conditions: Pricing Methods Manager of Pymache may use several pricing methods such as: Cost-plus pricing:

Price is set at the production cost plus a certain profit margin. Target return pricing

To achieve target return on interest price is set. Psychological pricing

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Pricing is based on some factors such as Price point, product quality etc. Price Discounts There are several types of price discount pymache may use: Quantity discount

Customers who purchase a large quantity are offered with several points after their shopping and by this way they get attracted for future shopping. Seasonal discount

Customers can get attracted if there is any seasonal discount on products. Cash discount

Customers who pays bill before the date cash discount can be offered to them. Trade discount

A trade discount may be offered to a small retailer who may not purchase in quantity but nonetheless performs the important retail function. 3.4. Illustrate how promotional activity is integrated to achieve marketing objectives in Pymache. Promotional activities can be integrated in several ways discussed below: Advertising: Pymache can use the tool advertising to let their customer know about their products and services. Stores convenient location, product pricing should be included in it. Personal selling: By integrating the price and promotion categories personal selling can be done. It includes highlighting the special benefits of a product and offering free delivery (Sherrell and Bejou, 2007). Sales promotion: sales promotion is an incentive that makes a product more beneficial and attractive to customers. Discounts, coupons and bulk pricing are included in sales promotion. This strategy should be integrated well with a business pricing strategy and also with place and product strategies. Public relations: A public relations involves promoting a service or product in a proper way. This can be done by developing an organizations reputation for customer service so that customers recommend its product to other.

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3.5. Analyses the additional elements of the extended marketing mix in Pymache. Marketing Mix deals with different kinds of choices organizations should make in the process of bringing a service or product to market (Beny, 2002). There are 4 ps associated with it. Product, Price, Place, promotion. Product should be produced maintaining a good quality and should fit for the needs of different group of consumers. Prices are depended on market segmentation they are targeted at. Store should be placed in a proper location from where customers can easily access the products. Marketing of Product should be supported appropriate advertising and promotional activity.

Task 4 4.1. Recommend marketing mixes for two different segments in consumer markets of Pymache: People

People are an important ingredient in provision of service. They make judgments about service provision of the organization. Interactions with people and customer can be helpful in several ways (Sherrell and Bejou, 2007). Process

This element of the marketing mix looks at the systems used to deliver the service. All services should be developed by clearly defined and effective processes. This will help to promote the service avoiding confusions. In other words processes mean that everybody knows what to do and how to do it Physical Evidence :

Physical evidence deals with where the service is being delivered from and specially deals with the retailers. A company is distinguished from its competitor by this type of marketing mix. Physical evidence can be used to charge a premium price for a service and establish a positive
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experience. Customers judge about the organization based on the physical environment. For example if any one walks into a restaurant he/she expects a friendly and clean environment, But if the environment is dirty customer wont prefer it for further visiting (Helm, 2004). 4.2. Illustrate differences between PYM Aches marketing products and services to businesses rather than consumers: Inseparable: The consumer is generally involved in the production process that they are buying. Goods can be made in a central factory location which gives a benefit of mass production. This localization means that production is inseparable from consumption. Intangible: Intangible cannot have a real, physical presence as does a product. So this is simple in relation to a tangible product because customer might look at size or color for example. Therefore search quality relates more to products and services (Odabas, 2000). Variable: Human involvement in service provision means two services cannot be identical. They are variable. This variability interms deals with customers satisfaction. Homogeneous: service need to be homogeneous. Consumers expect the same level of service and would not expect any huge deviation in their experience (Palmer, 2002). 4.3. Explain how and why international marketing differs from domestic marketing: Domestic Marketing Domestic marketing involves attracting and involving customers within the political boundaries of a country. When a company caters only to local markets, even though it may be competing against foreign companies delivering business within the country, it can be said to be a part of domestic marketing (Sherrell and Bejou, 2007). The focus of companies should be on local market and customer only and no thought is given to overseas markets. All the products developed are based on local markets only. International Marketing A company is in international marketing when there are no boundaries for the company and it targets customers from another country also.

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 Difference between domestic marketing and international marketing As explained earlier, both domestic as well as international marketing goes through the same marketing principles, but there are some differences between them: Scope: The scope of domestic marketing is limited and will eventually dry up. On the other end, international marketing gets endless opportunities and scope. Benefits: Benefits in domestic marketing are less than in international marketing. Furthermore, there is an added incentive of foreign currency that is important from the point of view of the home country as well (Helm, 2004). Sharing of technology: Domestic marketing is limited in the use of technology whereas international marketing allows use and sharing of latest technologies. Political relations: Domestic marketing does not deal with political relations whereas international marketing deals with improvement in political relations between countries and also increases the level of corporation. Barriers: Barriers are not seen in domestic market but in international marketing there are many barriers such as language, currency, cross cultural differences traditions and customs. Conclusions: The reports include the depth of marketing principles and their process in market to understand the stages of marketing principles in four different cases. In task one all question has been solved by discussing the various element of marketing process. Task two says about macro environmental factors which influence marketing decision it is very important for every organization to understand the need of consumer and provide them the best service for future. So all task step by step tells about principles of marketing. Each step tells us how to attract consumers in business make a customer satisfaction survey and also conclude the success of that survey step by step. Task three tell us that how products are developed to sustain competitive advantage in Pymache. The last task covered that why international marketing is different than domestic and also illustrates the differences between. The report covered all the possible information about marketing principles step by step with full detail and references of each individual source.

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References: Berry L. L. (2002) Relationship Marketing of Services-Perspectives from 1983 and 2000, Journal of Relationship Marketing. Evanschitzky H. Wangenheim F. V. (2006) Customer Value Based Entry Decision in International Markets: The Concept of International Added Customer Equity Journal of Relationship Marketing . Helm S. (2004) Customer Valuation as a Driver of Relationshp Dissolution, Journal of Relationship Marketing . Odaba Y. (2000) Satta ve Pazarlamada Mteri likileri Ynetimi, Sistem Yaynlar, stanbul, Palmer A. (2002) The Evolution of an Idea: An Environment Explanation of Relationship Marketing, Journal of Relationship Marketing . Sharma A. (2007) The Metrics of Relationships: Measuring Satisfaction, Loyalty and Profitability of Relational Customers, Journal of Relationship Marketing
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Sherrell D. L. Bejou D. (2007) Assessing the Productivity of Relationship Marketing: Moving Toward a Paradigm, Journal of Relationship Marketing . Wel C.A.B. and Bojei J. (2009) Determining Relationship Marketing Instruments, JUP Journal of Marketing Management .

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