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Marketing is a main function in any business. When we hear the word “marketing”? Some people think of advertisements or brochures, while others think of public relations. Marketing involves getting the right product at the right price, at right time, promoted using the right messages, media and sold in the right place. Marketing involves a range of processes concerned with finding out what consumers want, and then providing it for them. This involves four key elements, which are referred to as the ups. A useful starting point therefore is to carry out market research to find out bout customer requirements in relation to the ups.
At the core of effective marketing is the requirement to satisfy customers’ needs precisely. The closer the marketing mix of product, price, place and promotion are to customer requirements, the more likely it is that a business will be successful. Marketing is the science of choosing target markets through market analysis and market segmentation, as well as understanding consumer behavior and providing superior customer value. Today, Segmentation, Targeting and Positioning (STEP) is a familiar strategic approach in Modern Marketing. It is one of the most commonly applied marketing models in practice.
The STEP model is useful when creating marketing communications plans since it helps marketers to priorities propositions and then develop and deliver personalized and relevant messages to engage with different audiences. Executive Summary Marketing Principles is the study of what people think, feel and do in and around Global market. Involves getting the right product at the right price, at right time, promoted using the right messages, media and sold in the right place.. Therefore, Identify the Strength, Weakness, Opportunities and threats are very important.
Marketing Principles knowledge also has a significant effect on the success of Marketing. This book takes the view that Marketing Principles is for everyone, not Just for management. Several conceptual anchors represent the principles on which Marketing Principles knowledge is developed and refined. These anchors include beliefs that Marketing Principles knowledge should be multidisciplinary and based on systematic research, which Business events usually have contingencies and that Marketing Principles can be viewed from three levels of analysis (individual, team and organization).
The report ends with Explore the significance of international Market for Global Marketing to display the importance of Marketing Principles knowledge get good place in the Global market. Table of Content Task No. Task Page No. 01. Explain the various elements in the marketing process and identify how they impact the choice of marketing decisions 06 02. Evaluate the cost and benefits of marketing orientation to the selected organization 03. Show micro and macro environmental factors that influence marketing decisions 10 Propose the to be used for products in different markets 13 05.
Choose the targeting strategy for a segmentation criteria selected product/service 1 5 Demonstrate how buyer behavior affects marketing activities in different buying situations 17 Propose a new positioning for a selected product/service 19 Plan marketing mixes for two different segments in consumer markets 20 Illustrate the differences in marketing product and service to businesses rather than consumers? 21 10. Show how and why international marketing differs from domestic marketing 23 Conclusion 25 References 26 Appendix 27 BODY the choice of marketing decisions (LO 1 . ) Marketing is defined as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Understand Markets and Customers’ Needs. The company first gains full understanding of markets by researching consumer needs wants and demand. Philip Kettle defines marketing as “the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires.
It defines measures and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services. ” I have selected my organization as Cargill Ice Cream Company. When they entered the ice cream industry, the flavors available for most of to the customer at the time were Just vanilla, chocolate and strawberry. They looked at the industry and decided to see what difference they could make to the consumer. What Cargill has brought in, is its innovation driven strategy.
If they are to make a business work, they have to first look at how they get the raw material. This is critical in their business because their ice cream is probably one of three brands in this country that uses Sir Lankan milk. Needs: Human has basic human requirement such as food, air, clothing, shelter & education, etc…. There are different types of needs. We can categorize Ice Cream as delight need. It is not essential for human but they get feeling happy from get it. Then children have very attraction to the Ice Cream product even adult like it.
Therefore they always are looking for good product to get their delight need. Type of Need Definition Stated What the customer asks for What the stated needs actually mean Unstated What the customer also expects but does not ask for Delight Needs that are not essential but would delight if met Secret Needs that the customer does not express, often intangible in nature Wants: Needs become wants, when it is directed towards a specific object or service that is believed to satisfy that need. Wants are the manifestation of the human need that is shaped by the individual and their culture.
When Cargill entered to the market there are three main Ice cream suppliers in the market. Therefore they have to competition among them to supply specific things to the customers. Demands: Wants become demands when the customer has the capacity and inclination to pay for the object or service. If Cargill can provide wants better than the others, they can get more demand on their products. Product and Service Anything that is capable of satisfying customer requirements. There are two types of product and services. It’s mentioned as Tangible and Intangible.
The minds of target buyers as delivering some central benefits. Offering and Branding. The market offering is customized to the needs of the target markets by putting forth a value proposition. The intangible value proposition is made by physical offering which can e combination of products, service, information and experience. Brand is an offer from known source. All companies attempt to build brand image with as many strong, favorable and unique brands. Values and Satisfaction Successful offerings deliver value and satisfaction to the customers.
Value is a set of tangible and intangible benefits that cost the customer, they choose offer that deliver most perceived value. It is a fundamental idea of marketing that organizations survive and prosper through meeting the needs and wants of customers. This important perspective is commonly known as the marketing concept. The marketing concept is about matching a company’s capabilities with customer wants. This matching process takes place in what is called the marketing environment. Businesses do not undertake marketing activities alone.
They face threats from competitors, and changes in the political, economic, social and technological environment. All these factors have to be taken into account as a business tries to match its capabilities with the needs and wants of its target customers. An organization that adopts the marketing concept accepts the needs of potential customers as the basis for its operations. Success is dependent on satisfying customer needs. People want different experiences. They want to taste different things, and feel different sensations. As such, Cargill wanted to create new products and new variants, especially using local ingredients.
For instance they were the first to come up with real fruit ice cream. If they look at the number of varieties and flavors, initially, there were Just three. Today they have 44 products. (LO 1. 2) Costs A strong market orientation does come with significant costs. Investment in marketing research is high because company needs powerful market intelligence to spoon accurately. Technological infrastructure is also critical in the early 21st century as companies use databases to collect, analyze and use customer data. Constant modifications to work processes require investment in ongoing training.
Constant product modifications also mean ongoing investment in new equipment and product iterations. Dynamic business factors that can impact the level of Success Company have with a market orientation. Industries experiencing limited growth and high competition may provide less return on the investments in market orientation. Additionally, ineffective genealogy and data tools may inhibit a manager’s ability to gain market intelligence useful enough to influence high-cost business decisions. Benefits Sales A sale is the act of selling a product or service in return for money or other compensation.
Cargill can increase their sales they have high benefits. Loyalty Faithfulness or a devotion to a person, country, group, or cause. If Cargill provide best things to the customers they can gather loyalty customers around their products. Customer satisfaction A term frequently used in marketing. It is a measure of how products and services applied by a company meet or surpass customer expectation. Customer satisfaction is defined as “the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.
Show micro and macro environmental factors that influence marketing decisions (LO 2. 1) Micro-marketing The performance of activities that seek to accomplish an organization’s objectives by anticipating customer needs and directing the flow of need-satisfying goods and services. Macro-marketing A social process that directs an economy’s flow of goods and services to effectively match supply and demand and to meet society objectives. SOOT Analysts SOOT stands for strengths, weaknesses, opportunities, and threats Strengths and weaknesses are internal factors.
Opportunities and threats are external factors. SOOT analysis provides a framework for assessing almost any business issue. Anyone can identify SOOT analysis use a 2 X 2 grid to show the Strengths, Weaknesses, Opportunities and Threats. The technique is especially useful in analyzing six fundamental aspects: products, processes, customers, distribution, enhance and administration. Analysis yields a picture of the positive and negative aspects of the issue in question. From this analysis, anyone can elicit potential actions that could be used to correct problems or leverage identified strengths.
Strengths: Strengths are assessed by analyzing fundamental issues that include competitive advantages, organizational capabilities, significant areas of experience or expertise, and advantages in price, value and quality. This analysis highlights the strong points of the organization. From there, action plans can be drawn up to build on these strengths, maintain them or leverage them. Cargill is most famous company in Sir Lankan. Therefore, they always face to distinctive competence with other companies. As a group, one of the things they continuously invest in is their distribution strategy.
They have well-thought stakeholders. Cargill has an extensive distribution network and reaches almost all parts of the country. All communications strategies from branding to logos to materials have been driven by very famous persons such as Sancta Assyria. People want different experiences. They want to taste different things, and feel different sensations. As such, they wanted to create new products ND new variants, Cargill can gives variations through the new innovations. Therefore they always guide their members to new innovations and let give spaces to new ideas.
Weaknesses This part of the analysis identifies weaknesses so that ways can be found to eliminate or minimize them. Typical analysis focuses on issues, such as weaknesses in the organizations value proposition, gaps in capabilities, lack of financial strength or problems with cash flow, the supply chain, morale, commitment or leadership. Cargill products always depend on milks so they want quality milks to produce their products. Their Research and Development team always looking for new products to different from others then this case they want dedicate high amount of resources.
They always pay attention to the customers because even small thing can cause to give bad image about company. Opportunities Opportunities analysis addresses where priorities should be set or how efforts might be redirected. Issues typically analyzed in this phase include market developments, competitor vulnerabilities, global influences, technological advance and potential partnerships. Cargill can introduce new products to various segments and develop new products. They can identify customer with various needs. Looking for ongoing relationship between customers.
Reduce extra cost such as Current Bills, Water Bills, etc. Take advantages of new trends. Threats The objective of the threats analysis is to identify and find ways to mitigate potential threats. Topics might include pending legislation, environmental issues, competitor intentions, market demand, technologies, obstacles to current plans, insurmountable weaknesses and economic issues. Change the environment. Loss of major customers due to some economical, ethical and cultural factors. Increase raw material, energy ND transport cost. Strong competition between other main competitors.
Change in technology. PEST Analysts A PEST analysis chart, we’ll want to examine several external factors that may influence business operations and decision making, then classify these factors into four distinct buckets as Political and Legal, Economic, Socio Cultural and Technological. Political and Legal Essentially how and to what degree a government’s policy will impact a business’s operations and decisions. Political factors include tax policy, labor law, environmental law, employment law, trade restrictions, regulations, tariffs, and political and economic stability.
Governments have great influence on national infrastructure and the general education of the population as potential employees and customers. Economic local, national, and international economic conditions that can influence a business’s operations and decisions. Economic factors include economic growth, interest rates, taxes, consumer confidence, exchange and inflation rates. Global economics crisis also influence to customer needs. Socio Cultural Lifestyle trends such as health consciousness, population growth rate, age distribution, living conditions, lifestyle changes, career attitudes, and ethics.
Trends in social factors also affect the demand for a business’s products and how that business operates. Technological R&D activity, licensing and acquiring patents, available research funding, communications, automation, technology incentives and the rate of technological new innovation. Technological factors may determine barriers to entry, minimum efficient production level, and influence outsourcing decisions. Shifts in technology and advances may affect costs, quality, and overall innovation. Propose the to be used for products in different markets (LO 2. ) Cargill believes in touching people’s lives in very way. They believe that is what has made Cargill Magic have this market share and grow the category. Every brand of Cargill is growing and leading the category. Year by year, they lead, they grow and they invest. They believe that this is the new direction that the world is looking for. The world needs consumers who, when buying a product are not Just looking for satisfaction but more than that in terms of touching and changing people’s lives and making a difference.
Cargill manufacture is based on that – how they touch different people’s lives at different moments of the day, in different parts of the country. Cargill products almost produced as sweet and contains high amount of Sugar. Every peoples like to consume sweet but someone are cannot use due to some disease such as diabetics. Therefore, they are influencing to introduce Sugar free product as “Sugar Free Ice cream”. Behavioral When a product is consumed or purchased. For example, Ice cream have traditionally been marketed as a sweet-related product.
Free Sugar Ice cream has always encouraged consumers to eat dessert “occasion” of getting up. More recently, they have tried to extend the consumption of Ice cream by promoting the product as an ideal, anytime snack food. Some markets can be segmented into light, medium and heavy user groups. Loyal consumers – those who buy one brand all or most of the time – are valuable customers. Many companies try to segment their markets into those where loyal customers can be found and retained compared with segments where customers rarely display any product loyalty. An important form of behavioral segmentation.
Benefit segmentation requires Marketers to understand and find the main benefits customers look for in a product. An excellent example is the Ice cream market where research has found four main “benefit segments” – economic; deciding, cosmetic and taste. Demographic Studies of a population based on factors such as age, race, sex, economic status, level of education, income level and employment, among others. Demographics are used by governments, corporations and non-government organizations to learn more about a population’s characteristics for many purposes, including policy development and economic market research.
According my selected product this factor most important because producers want to know how much quantity wants to markets and how cover every area which this product wants. Cryptographic Analysis of consumer life styles to create a detailed customer profile. It is very important to advertising Cargill product among customers. Market researches conduct cryptographic research by asking consumer to agree or disagree with activities, interests, opinions statements.
Results of this exercise are combined with geographic (place of work or residence) and demographic (age, education, occupation, etc. ) characteristics to develop a more ‘lifelike’ portrait of the targeted consumer segment. Geographic Collecting and analyzing information according to the physical location of the customer or other data source. Geographic segmentation is often used in marketing, since companies selling products and services would like to know where their products are being sold in order to increase advertising and sales efforts there.
See also demographic segmentation. Sir Lankan has different climate in each area. Some areas are very hot with sunshine. Therefore Geographic factor very important to increase their distributions relevant areas. Choose the targeting strategy for a segmentation criteria selected product/service (LO 2. 3) Market segmentation is practiced by most businesses in one form or another, as way of streamlining their marketing strategy by dividing broad-based target markets into specific groups of consumers, and devising marketing methods that will appeal to each group.
Mass marketing makes the same sales pitch to all your potential customers. Market segmentation breaks customers down into categories based on income, age, race, lifestyles, location or other factors. To boost sales with segmentation, choose the right criteria for dividing the market up. Single segment concentrate One segment only. The marketer caters to the entire market with a single offering and the same marketing mix. It is similar to mass marketing.