Words: 1634
Introduction The report is tasked to take an in-depth look at the marketing environment in which our chosen organization, bskyb operates within. The report is further tasked to identify why complacency should have no place in the complex competitive market in which bskyb operates. In order to address the issues at hand, the report will establish and identify the elements of bskyb marketing mix and outline the necessity to continuously “explore various possibilities of improving their activities towards satisfying the needs and wants of their target market”.
The report will commence by giving the historical background of bskyb- who are they, when did they commence, what their initial core activities were and what their current core activities are. The report will continue by defining the concept of the marketing mix and defining the service sector. It will follow by defining and assessing the seven elements of the marketing mix. The report will further highlight BskB’s objectives, identify their current market share against their competitors and define their market orientation.
The macro and micro marketing environment will be discussed and both a SWOT analysis and Pest analysis will be conducted in order to establish why being complacent with current practices raises concern. GAP ANALYSIS Marketing Mix The term marketing mix was introduced by Neil H. Borden in 1965. The marketing mix is a marketing tool which ensures marketers provide the right product at the right place at the right price.
The term “marketing mix” rightly gives the indication that the provision of the right product at the right place at the right time can only be achieved if there is a balance in the marketing mix elements, that is Price, Product, Place and Promotion referred to as the 4Ps. Service industries further extend the Marketing mix to 7Ps. They are People Process and Physical evidence. We will now discuss the marketing mix of BSkyB. • Price • Product Life cycle –make products obsolete. • Promotion Google pop ups, tv • Place, • People • Process • Physical evidence.
The basic concept of marketing mix (description of four marketing mix elements) was published in the article “The concept of the Marketing Mix” in Journal of Advertising Research. Later on concept was expand to seven marketing mix elements, and then to nine marketing mix elements and later additional three elements was added. Classic concept of marketing mix it is “4P”: 1. product 2. price 3. Promotion 4. Place Product We define a product as anything that is can satisfy customer needs and wants. This definition includes material products and services.
Product Life Cycle imposes limitations on the different marketing policies. Product Life Cycle is usually divided into four stages: introduction, growth, maturity, and decline 1) First is the development stage (introduction stage) the market share and growth is slight. It is possible that substantial research and development costs have been incurred in getting the product in to the market. There are additional costs for marketing and setting up distributional channels. Usually companies do not make big profits at this stage.
At this stage, everything is done to ensure success and future growth of the product. 2) The growth stage main objectives are to increase the market share and if product is successful start to develop product under the same brand name. At this point, there are increasing sales and profits levels. 3) The maturity stage at this point growth in sales resign . Competition is could appear, the main objectives is to defend market share as possible longer time period while maximizing profit. 4) Decline stage – as sales are declining the company has more than one potion: 1.
Find new market for existing product 2. Extend the product with additional features 3. Reduce price and continuous selling product 4. Re-sell product to different company which wants to continuous investing money into the project. Price There are a great many ways to put price on to product, most popular are: 1. Premium pricing-usually above the high of its segment. For example, something unique like car Ferrari. 2. Penetration pricing-the price of entry usually much lower, normally bread cost 1pound but we are selling the same quality bread for 40 pence to displace competition. . Economy pricing- low cost for simple and cheap products 4. Psychological pricing psychological price, as example instead of 5 pounds 4. 99 5. Product line pricing – product line or set of services, for example, basic model of computer and extended model for the same company computer. 6. Geographic pricing – geographical pricing. The same company is offering different prices for different companies branches basted of local people purchasing power or mach with surrounding competition to not suffer loses. Place
Under the place can be understood as the end of the point of implementation, the distribution systems, separate channels, intermediaries. This means the mechanism by which moves the product or service from producer to consumer. Promotion There are many ways to reach the target customer, but point to all marketers should remember any way they are achieving the customer’s main purpose is the “message”. It should be nice and easy understandable. Most popular ways to promote products are: 1. Personal selling 2. Sales Promotions 3.
Public Relations 4. Direct Mail 5. Trade Fairs and Exhibitions 6. Advertising 7. Sponsorship Extended classic concept of marketing or service marketing mix is “7P” 5. People 6. Process 7. Physical Evidence People All people directly or indirectly are affects sales. Knowledge Workers, Employees, Management and other Consumers often add significant value to the total product or service offering. Process Procedure, mechanisms and a flow activities by witch service are consumed are an essential element are very important to marketing mix.
As example you walk into local bank and you have been served in two minutes time so customer will be more likely come back to this bank branch as another where it need to stand in long line. Physical evidence Physical evidence is an essential ingredient of the service mix; consumers will make perceptions based on their sight of the service provision which will have an impact on the organization perceptual plan of the service. Physical evidence is index which shows did company reached customers expectation. [pic] Source: http://srmark. com/images/Marketing_Mix_Diagram_-_7Ps_L. pg Product bskyb operates the most comprehensive multi channel television services in the UK and Ireland. About 9. 7 million homes enjoy different choices of movies entertainment, cartoons, sport channels and interactive services on sky digital. Product design The product was designed by a team known as the frog design, they work hand in hand with bskyb to design the individual boxes that will support their market position. The basic sky box was design to look more fun while the HD (High Definition) was designed to look more unusual and powerful.
Technology The technology which bskyb uses makes life easy and possible for their customers with the use of satellite, internet and telecommunication. With the means of this kind of technology it gives their customers more choice in terms of using the internet at the same time using the telephone. Another technology which bskyb has recently introduce is the SKY 3D the next revolution in television it allows you to watch immersive way, with the feeling of in the presence of the action.
It uses the most current technology to perform a 3D feeling in your home. Another technology is the sky player service this allows you to watch online TV on your computer, Xbox 360 programs such as sky movies, BBC, sky sports etc. Usefulness As a customer of bskyb I can say that the product is useful in the sense that you are able to watch varieties of channels from other country. Listen to radio, interactive system, the ability to pause and rewind live TV, record your favorite programs when you are away from home.
Online shopping, sky broadband and sky talk. Most sky customers will find the product useful because of the functions the product has. Convenience Most people like the convenience of a product whereby customers don’t have to go through a long process to operate the product or to get it working for example once the sky box is installed, all you do is to turn on the TV and the box and then the control of the product will be on your finger tips, from watching TV or internet access playing games all with the use of the control.
Place Place in terms of the marketing mix refers to how an organization will distribute the product or services they are offering to the end user. The organization must distribute the product at the right place and at the right time. If an organization is to meet it’s marketing objective they should be able to distribute the product fast and effective to meet customers demand otherwise profitability will be affected. Sky uses two types of distribution method which is indirect and direct distribution.
Indirect distribution where by the manufacture sell to whole seller then to retailer and consumer this can be their agent e. g Currys, Comet. BSKYB also uses direct distribution which is distributing from manufacturer to the customer. Sky can only be found on the internet as they do not have offices on the high street but they do have agents in shopping malls to get people to subscribe for the product. competitors, virgin media bt orange carphone warehouse tiscali Products
Digibox(sky digital, sky+, sky+ hd, free sat from sky) sky active, sky anytime, sky player, sky magazine (sky kids magazine, sky movies magazines, sky sports magazine) Services Sky broadband Sky talk Sky email and tools Sky songs Location Internet, emarketing, sky. com, Sales representatives References http://www. commerce. uct. ac. za/Managementstudies/Courses/BUS2010S/2007/Nicole%20Frey/Assignments/Borden,%201984_The%20concept%20of%20marketing. pdf http://tutor2u. net/business/marketing/products_lifecycle. asp