Running Head: MARKETING PRINCIPLES

Marketing Principles
[Name of the Writer]
[Name of the Institution]

Marketing Principles

Table of Contents
Brief Background of the Company.....................................................................................1
1.1 Various Elements of the Marketing Process................................................................1
1.2 Marketing orientation culture.......................................................................................5
2.1 Macro and Micro Environmental Factors.....................................................................6
2.2 Market Segmentation...................................................................................................6
2.3 Targeting strategy........................................................................................................7
2.4 Effect of buyer behaviour on marketing activities........................................................8
2.5 Positioning of the new product....................................................................................8
3.1 Sustainable Competitive Advantage through New Product........................................9
3.2 Distribution Strategy..................................................................................................10
3.3 Pricing Strategy.........................................................................................................10
3.4 Promotional Strategy.................................................................................................11
3.5 Additional Elements of the Extended Marketing Mix.................................................12
4.1 Marketing mix for two different segments..................................................................13
Product.........................................................................................................................13
Price..............................................................................................................................13
Place.............................................................................................................................14
Promotion.....................................................................................................................14
4.2 Difference between Marketing to B2B and B2C........................................................14
4.3 Domestic Marketing and International Marketing......................................................16
References.......................................................................................................................18

Marketing Principles

Brief Background of the Company

Gulp beverages ltd. is a newly twisted company. The company proffers a
selection of ground-breaking healthiness beverages ranging from fresh juices, vitamin
tea to energy drinks unified with various natural antioxidants. The company operates in
the FMCG sector. The company is well aware of life style of its customers, thus in
engaged in providing a wide range of innovative beverages, and also develops
resourceful health solutions to meet all the health related expectations of consumers in
United Kingdom. The company is planning to launch an innovative line of energy drinks
Goji plunge that would integrate the health benefits of the super outgrowth- Goji
berry, with a notable list of medical advantages. This report aims to discuss various
aspects related to the marketing of the new product of Gulp beverages that is Goji
Plunge.

1.1 Various Elements of the Marketing Process

What is Marketing Process?

The purpose of every organisation is to make its

offering reach its target consumers.

The process by which organisations achieve this
purpose is known as marketing process (Klopper et.al,

09-12).
Marketing process is the entire process through which
an organisation or company interacts with its target
market.

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Elements of Marketing Process

Marketing process is a complex process integrating a

number of aspects.
These aspects can be referred to as the elements of

the marketing process.

In general, there are six main elements of the
marketing process (Klopper et.al, 09-12).

Elements of Marketing Process

The six elements of the marketing process are:

1) Two parties
2) Product
3) Price
4) Place
5) Promotion
6) Environment

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Two parties- 1st Element of Marketing Process

The two parties which are engaged in the marketing

process forms the first element of the marketing

process.
In general, the two parties involved in the marketing
process are:
1) The organisations marketing management
2) The target consumer(s)

Marketing mix- Element of Marketing Process

The marketing mix comprises the four elements of

the marketing process.

These four elements are product, price, place and

promotion.
Product: The main offering by the company is termed
as product. This includes all the features and aspects
associated with the offering.

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Marketing mix- Element of Marketing Process

Price: This refers to the value of the product i.e. the

cost of the product for the consumer,

Place: This refers to the places of sale and
distribution of the product i.e. the availability of the
product.

Marketing mix- Element of Marketing Process

Promotion: This refers to all the activities that the

company undertakes to inform, communicate and

persuade its target consumers to buy the product.

Promotion includes personal selling, public relations,
advertising, discounts and any other activity used for

marketing the product

This is also known as marketing communications.

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Environment- 6th Element of Marketing Process

The surroundings in which the organisation operates

and

the

customers

dwell

is

known

as

the

environment.
This environment and the forces in it affect the
marketing process.

1.2 Marketing orientation culture

When any organisation strives to recognise the needs and wants of its target
market and then develops its marketing activities accordingly, the organisation is said to
adopt a marketing orientation culture (Klopper et.al, 15-17). Adopting a marketing
orientation is imperative for the success of our organisation Gulp beverages. By
integrating such a culture, the organisation will be better able to discern what is needed
and wanted by its target customers. Once these needs are identified, all the elements
from the idea of product offering to the promotional activities will be a reflection of those
needs (Klopper et.al, 15-17). This will increase the probability of the success for the
companys product. Since the customers will be provided with what they have aspired,
they will be most likely to try the product and respond to the marketing activities.
The marketing orientation culture; however, implies significant costs in terms of
extensive marketing research. Also, the company is required to change the offerings
according to the changing demands of the customers. Although, marketing orientation
culture implies costs, but the costs are more an investment which has significant return
on investment. The benefits of the marketing orientation for the modern day
organisations like Gulp beverages surpasses the costs and efforts associated with such
an orientation. A marketing orientation culture reduces the risks associated with failure
of the offering in the market.

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2.1 Macro and Micro Environmental Factors

The macro and micro environment in which the firm operates impact the
decisions made by the firm in relation to the marketing of its products (Young & Pagoso,
2008, pp.53-60). Taking into consideration the macro environment, two factors that have
significant impact on the marketing decisions of the company are technological change
and ecological inclination. The rapid change in the technologies used affects the kind of
the communication media and channel that the company utilise to communicate with its
target market, for instance recent increased use of social media. Another macro
environmental force is the ecological environment which influences the activities frim
undertakes in relation to production, advertising and promotions, for instance recent
move towards green advertising.
The micro environmental forces that will affect the marketing decisions of Gulp
beverages are the competitors and the marketing intermediaries (Young & Pagoso,
2008, pp.53-60). The actions and the strategies of the competitors affect the marketing
actions taken by Gulp beverages to counter the competitors action to grab significant
market share. Another force that is marketing intermediaries affect the placement
strategies that Gulp beverages will undertake to make its product available to the target
market.

2.2 Market Segmentation

Market segmentation and targeting plays a vital role in the marketing strategy of
all successful organizations and is a commanding marketing tool for numerous reasons
(Lamb et.al, 2009, pp.231-232). Market segmentation also helps marketers define the
needs and wants of the customer more precisely (Lamb et.al, 2009, pp.231-232). Gulp
beverages new product that is Goji plunge is aiming to target the students between he
ages 15-24. The target customers of for Goji Plunge of Gulp beverages are also those
people that are health conscious and value a healthy lifestyle.
Keeping in view the types of the customers target by Gulp beverages for its new
product, the type of segmentation that is most appropriate is the demographic
segmentation and the psychographic segmentation (Lamb et.al, 2009, pp.231-233). The
demographic segmentation will allow Gulp beverages to segment its market on the

Marketing Principles

basis of age (15-24 years old) and occupation (mainly students). The psychographic
segmentation will allow the company to segment the market on the basis of interest
(health conscious favouring healthy products) and lifestyle (healthy life style). The two
segments will be used in combination to design the marketing strategies related to the
new product Goji Plunge.

2.3 Targeting strategy

After segmenting the markets into different segments, the company needs to
decide the ways to target those segments. These ways are known as the targeting
strategy for the company. Since Gulp beverage sis a new business, it plans to initially
follow a combined targeting strategy (Perreault & McCarthy, n.d., pp.75-76) for its new
product Goji Plunge.
A combined targeting strategy is the one in which the business or the company
develops an overlapping marketing strategy for its identified segments of the market.
Accordingly, all the marketing strategies are designed for those segments (Perreault &
McCarthy, n.d., pp.75-76). Gulp beverages; however, later on will follow multi segment
strategy by developing offerings for different segments of the market. For Goji plunge,
the identified segment is very specific as described in the segmentation strategy.
Gulp beverages will target the student segment of ages 15-24, which are
essentially moving to adopt a healthy lifestyle. Accordingly, the company will use
combined marketing strategy for the identified segments of students age 15-24 years
and health conscious people. All the marketing strategies will be designed and executed
uniformly for the identified segments of customer.
Goji Plunge will be wrapped up in recyclable cans of aluminum that hold 355 ml
(12 fluid ounces) which display the name of the brand, logo, and facts related to fun,
and the nutrition facts and list of ingredients. The packaging of Goji Plunge uses a fresh,
orange, and red graphic design. The product will be sold as single unit as well as in 4packs. In addition Gulp Beverages will also proffer customer service through its helpline,
contact us pages and website FAQ.

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2.4 Effect of buyer behaviour on marketing activities

It is imperative for the organisations to identify and understand the buying
behaviour of the customers. The way in which the customers make their purchase
decision, the factors by which customers buying is influenced and the aspects valued by
the customers while buying the product refers to the buying behaviour of the customers
(Smith & Taylor, 2004, pp.115-116).
Just like any other organisation, buying behaviour can significantly affect the
marketing activities of the Gulp beverages for Goji Plunge. Two buying situations in
which the customers buying behaviour can affect the marketing activities of Gulp
beverages includes the means customers use for information search. Since it aims to
target the youth predominantly, the media and sources used by them to evaluate
different alternatives is different. This segment is engaged heavily on internet and social
media. Gulp beverages therefore will have to design its advertising and communications
strategies according to this keeping social media as one of its priorities.
Another situation where the buying behaviour of customers can affect the
marketing activities of Gulp beverages is the amount the customers are likely and willing
to spend on the energy drink. This will affect the pricing strategy as well as the
promotional schemes and offers such as discount or buy one get on free offer.

2.5 Positioning of the new product

Positioning can be termed as the unique selling proposition of the product or
service. It is the essence of any product which sets it as different from the offerings of
the competitors (Restrepo, 2003, p.04). The competitive advantage that the Gulp
beverages plan to have with regards to its product Goji Plunge over its competitors
offering is the healthiness of the drink. This will be the basis for the positioning of the
Goji Plunge. It will be positioned as an energy drink that is good and refreshing in taste
in addition to the health related benefits. Unlike the other energy drinks and carbonated
drinks, Goji Plunge will be associated and positioned with the health related benefits of
Goji berries.
This positioning will form the basis of the marketing mix set for Goji Plunge. The
products design needs to communicate the benefits of Goji berries, the price needs to
be a little more owing to the benefits of Goji berries in the drink, the placement needs to

Marketing Principles

be extensive to make it available conveniently to the target consumers and the

promotions needs to highlight and be associated with the health related aspects of Goji
Plunge.

3.1 Sustainable Competitive Advantage through New Product

New product development process includes identifying an idea and translating
the idea into an offering that sets the company ahead of the competitors giving it a
competitive advantage (Wheelwright, 2010, pp.03-07). Gulp beverages identified market
segments are the students between the ages 15-24 who values a healthy life style. The
company will launch innovative line of energy drinks that would fit in the health related
benefits of the Goji berry (Wong, 2012), with an inspiring list of remedial benefits.
In order to sufficiently target its customers, Gulp Beverages will take up a
differentiation strategy of positioning (Ireland et.al, 2012, p.116) to direct its creation
towards a younger, more health-conscious customer. The success key of the early
launch is to set up Goji Plunge as a premium niche product in the market of health
energy drinks. Consequently, by offering a rational choice to the standard consumers of
energy drinks, the product will fill a gap of doubts about the possible health exposures
of energy drinks (Anonymous, 2011, pp.01-02), a gap left idle by the energy drink
industry. This will act as a sustainable competitive advantage for Gulp beverages.
The competitive advantage of Goji Plunge is based on the point that it is the first
energy drink to combine the natural health benefits of Goji Plunge along with its
refreshing qualities. Gulp Beverages plans to position Goji Plunge in the mind of
consumer as a convenience good; a good tasting and healthy drink that dependably
delivers on its assurance of energizing and stimulating the mind and body. Besides
being fairly responsible and student-friendly, the Goji Plunge brand aims to be an
arrogant follower of active, healthy way of living for youth. Gulp Beverages focuses to
maintain a strong image of brand in the energy beverage market as a spanking new,
fruity, simple, and vigorous but healthy energy beverage for its target market.

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3.2 Distribution Strategy

According to Vieceli & Valos (1998, pp. 278-279), a distribution channel, (at times
called a dealing channel) for a product is the way taken by the route to the products as
they move from the manufacturer to the final customer or end users.
Gulp Beverages will use indirect means of distribution, as the corporation creates
the product in United KIngdom. Goji Plunge will sell its offering to distributors who will
then deal out to individual vendors all through United Kingdom to deliver the completed
product to consumers all over the state. In order to attain coverage of target in the prime
launch of Goji Plunge, Gulp Beverages will make use of extensive means of distribution
and mediators in order to productively place itself as a convenience good. Gulp
Beverages will be exhibited on the shelves of ease and grocery stores, and it will target
trade locations in United Kingdoms most crowded areas and in close immediacy to
large universities. In addition, the product will accessible in 24 hour stores, with the aim
of increase availability. Once the market is soaked, Goji Plunge will consider growing to
other countries, making Goji Plunge a worldwide name.

3.3 Pricing Strategy

Barker and Angelopulo (2006, pp.139-140) define pricing as the total sum
allocated to the product by the seller and the buyer. On the other hand, sellers view the
price of a product in a different way than do buyers. For the seller, the price is a
succession of cost mechanism related to profit, while the buyer focuses on the
chronological price, the cut-throat price, the expected price, the jeopardy and the
supposed need for the product.
Gulp Beverages will use the competitive pricing strategy (OaShaughnessy, 1995,
pp. 621-622). Since the customers of Gulp beverages are students of age 15-24 and
those who values the healthy lifestyle, Gulp beverages has to set prices that are
competitive with that of competitors. A competitive price for Goji Plunge will foster trial of
the products since the customers will not be required to spend significantly more in
order to buy Goji Plunge. However, the prices will be set at least five to ten percent
above those of other drinks. This will be done to highlight the premium quality and
benefits of Goji Plunge over the drinks being offered by the competitors.

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3.4 Promotional Strategy

It is important to communicate the product offering effectively to the target
segments of the market. Promotional strategy is a way of achieving this purpose (Smith
et, al, 2002). Marketing media used for advertising of Goji Plunge can include music, on
the internet, and transport (Smith et, al, 2002). To begin unique exotic Goji Plunge
course of advertisement, stereo ads could be run in order to stimulate and fuel
recognition of the product. Over the course of 8 several weeks, 3 different ads could be
run, using funny, concentrating benefits, and comparative advantage.
Furthermore, relatively low-cost transport ads showing the slogan Your New GoTo and other catch-phrases can be offered in town locations with high student
population. The transport ads should show how taking unique Goji Plunge will enhance
the audiences life, by showing actually eye-catching individuals. To capture the
attention of the students, internet ads could be used as it is the fastest method in the
developed countries to reach a sophisticated audience. Marketing areas should be
purchased on popular sites such as Face book or MySpace and different popular
search engines (Zarella, 2010, pp.53-65)
In addition to advertising strategies, various promotional strategies should be
executed to complement the advertising to generate an integrated marketing
communications strategy in which each element will support and back others (Barker
et.al, 2011). Exotic Goji Plunge can run a Boost Yourself Contest. In order to enhance
client buys, the highly entertaining style of the Boost Yourself competition can be used
to enhance product identification and motivate client participation with the product.
Customers will deliver in their best Boost Yourself voice-recorded marketing through
the formal website and the champion will get a boosted designed celebration for him
or her and ten visitors paid by Gulp Beverages as well as an opportunity to record an
exotic Goji Plunge professional to be performed on the stereo.
Finally, Goji Plunge can attract frosh activities at major colleges and schools. In
addition, 10,000 labels can be allocated during frosh activities and university trips.
Furthermore, testing should be used in order to familiarize the consumer with the item;
Goji Plunge should be given out in universities at a specified time which will be declared
through their Twitter Page (Barker et.al, 2011). Since the main target of Goji Plunge is
the youth and the health conscious sophisticated people, most of its promotions should

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essentially be centered on universities and colleges for instance sponsoring sports

events and other freshers events. Moreover, different contests could be held and free
samples will be distributed in colleges, universities, shopping malls and other populated
places to generate awareness and boost purchase.
Personal selling and sales promotions are important techniques to invigorate
sales especially in the introductory and declining stages of a product (Barker et.al, 2011,
pp.04-05). Since Goji plunge will be in the introductory stage on its launch, it should
utilize both personal selling and sales promotions tactics to embark its sales and
encourage product trial. Personal selling could be done in the colleges, universities,
crowded streets and malls, where the volunteers of Gulp beverages wearing Goji
Plunges T-shirts will provide free trial samples to the target consumers. Moreover,
kiosks could be placed in malls where the sales representatives will be selling the drink
one-to-one.
Various sales promotions could also be utilized in the early launch phase to
attract the consumers (Smith et.al, 2002). These sales promotions can include buy two
get one free offer, coupons and vouchers in newspapers and youth magazines leading
to free drinks, free gifts such as an empty sheet of Goji Plunges stickers which when
filled will be given free movie tickets and other short term promotional strategies.

3.5 Additional Elements of the Extended Marketing Mix

In the modern marketing strategy, the marketing mix has extended from the
concept of four Ps to seven Ps. In addition to the product, price, place and promotion
the other 3 Ps added to the marketing mix are people, process and physical evidence.
The additional 3 Ps of the extended marketing mix allows the firms to enhance the
customers experience by improving customer service (anonymous, 2009, p. 04).
The three Ps of the extended marketing mix can be utilised for the Gulp
beverages as well. Since Gulp beverages will be involved in personal selling, the people
aspect will also serve as a communication medium. By training the volunteers and
making them wear the caps and t-shirts of Goji Plunge and Gulp Beverages, the
customers will be increasingly attracted towards the activities and will be relying the
people hired for direct selling. Gulp beverages will invite feedback and suggestions from
the customers through a proper process integrating the helpline number, company

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website and face book and twitter pages. Physical evidence can be integrated by
making the shelves of placement and the kiosk place din universities and malls
attractive and communicative of the benefits and attributes of Goji Plunge. The vans
used for transport ads will also act as physical evidence.

4.1 Marketing mix for two different segments

The FMCG considered is a beverages company. The two target market
segments in the consumer markets are the high income class people and the middle
income class segment. The marketing mix designed for the two segments will differ
according to what is being valued by the consumers in that segment. The marketing mix
for the two segments will be as follows:

Product
The beverage for the middle class income will be available in bottled form
whereas the beverages for the high income class segment will be available in canned
form. The reason for this is that high income class segment usually prefers canned
beverages. The taste and benefits; however, will remain same for both segments.

Price
The price for the middle income people will be the same as the one offered by
other bottled beverages whereas the price for the canned form of the beverage for high
income class people will be relatively a little high to make the quality prominent.

Place
The bottled beverage for the middle income segment will be made available
extensively at all the places from a local shop to the general store and university
campuses. The canned drink; however will be placed at exclusive places targeted
mostly by high income class people such as marts, malls, theatres and other similar
places.

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Promotion
The promotions again will differ for the two segments. The promotion for middle
income segment will be mainly centred on indoor and outdoor advertisements and sales
promotions. The promotions of the canned beverage will be based on BTL activities
arranged in the places such as malls, marts, theatres, universities and other such
places.

4.2 Difference between Marketing to B2B and B2C

Business to Business and Business to Consumer
marketing

In a business to business marketing, an organisation

sells and markets its product to another organisation.

In a business to consumer marketing, the company
sells and markets its products directly to the consumers
(Stokes & Lomax, 2008, pp.409-410).

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Difference between Marketing to B2B and B2C

B2B marketing is more focused and tailored as

compared to B2C marketing.

In B2B marketing, the audience

is

elite

and

sophisticated. Accordingly, the marketing needs to be

sophisticated as well.
B2B marketing needs to be done more carefully and
watchfully because of greater risk associated.

Marketing to B2B is different

There is smaller number of customers in B2B and they

necessitate trustworthy relationships and an elevated

service.
Marketing in B2B is more focused on personal selling
(one-on-one) calls and meetings to the customer rather

than massive selling.

Specialized media for instance web sites, trade shows,
sales brochures, trade journals are employed instead of
conventional mass media.

15

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16

Marketing to B2B is different

In B2B, the buying process is complex, the marketing

therefore must be value driven.

Marketing must focus on building long term relations

rather than short term incentives and discounts.

The marketing and sales staff needs to be more trained
and informed in B2B marketing to persuade the
business customers.

4.3 Domestic Marketing and International Marketing

In domestic marketing, the organisation focuses its marketing efforts within the
national boundaries. Accordingly it designs promotions, advertisement, pricing, product
and other marketing strategies for the consumers in that market. However, when the
organisations decide to operates outside the national boundaries, it has to mould its
marketing strategies to meet the diverse needs of consumers in the international
marketing (Paul & Kappor, 2008, pp.07-08). International marketing is considerably
different than the domestic marketing. International marketing is more risky than the
domestic marketing because of the complexity of dealing in multi markets. However,
international marketing allows the firm to increase its portfolio and reduces the risks
associated with operating in one market only (Paul & Kappor, 2008, pp.07-08).
International marketing also requires more marketing research and financial
resources as compared to the domestic marketing. The product has to meet the
requirements set by the government of the respective country. The pricing decision also
needs to be carefully made keeping in view the exchange rates and inflationary aspects.
The promotions have to be designed keeping in view the interests and needs of the
consumers in global market (Paul & Kappor, 2008, pp.07-08). Although, international
marketing is more complex; however, the advantages associated are worth the efforts.
The organisation gains familiarity and brand recognition across the world. More
opportunities are opened for the company increasing the threats of working in a single
country (Paul & Kappor, 2008, pp.07-08).

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