I will investigate how two organisations, Microsoft and M&S use marketing activities in relation to the Microsoft surface and the food market for M&S.

Perception of customers or users

This is what customers think of a business’s services or products. E.g. if a customer knows that a certain business offers low-quality products, they might but another business’s product instead

Link between organised objectives and marketing objectives

The link between these two is that they both hand in hand with each other. The marketing objectives is there to support the organisational objectives

Marketing techniques available to a business

Diversification

This is when a business sells new products to new customers

Product development

This is when you develop and sell a new product to the customers who are already buying your products

Market development

This is when you sell a product that you already have to a new or different market  

Ansoff’s matrix –

He used four categories in a matrix to show how there are different opportunities in the new and existing products and markets. The four categories are

• Maintain or increase the market share of current products – sales promotions, advertising
• Secure dominance of growth market
• Restructure a market by driving out competitors – this can be done by using more strict and aggressive promotional campaign
• Increase usage by existing customers-  e.g. introduce new loyalty schemes

Survival strategies –

These are the techniques that business develop in order to survive in the market industry and not having to close down after a few months of starting

Brand building/positioning

This is when a business decides to design and create new brand. This process can be long as enough time is needed in order to come up with a meaningful name slogan and image relevant to the message they are trying to put across for their product

Brand extension

This is when a brand uses its name creates and develops new product in a different products category

Relationship marketing

This is when a business identifies a long-term relationship with a customer and uses it to attract more customers and make more profit

Transactional marketing

It is a strategy that is used in business to target customers in making a one off sale transaction. The purpose of this technique is to increase a business sale by boosting the volume of single sale instead of forming a relationship with the customer  

Marketing techniques used by Microsoft

An introduction to the business

Microsoft is an American global corporation that was founded in 1975 by Bill Gates and Paul Allen. This business specialises in the creation of computers software, they also sell, licence it and offer services. Microsoft also has flagship hardware products which are the Xbox games consoles and the Microsoft surface tablet. Microsoft does operate in the public sector.

The product I am going to investigate

The product I will be investigating is the Microsoft surface designed and sold by Microsoft Corporation

Their aims are to: 
•Launch new tech operating systems.
•Sell products to customers. 
•Increase market share; beating competitors 
•Think of ideas of products. 

Their goals are to establish and preserve accountability to Microsoft owners, provide a structure through which management and the Board set objectives and monitor performance. Strengthen and safeguard their culture of business integrity and responsible business practices. Encourage the efficient use of resources, and to require accountability for stewardship of those resources.

How marketing techniques are used to market the surface tablet sold by Microsoft

Diversification –

Microsoft introduced their smart phones to diversify their market products rather then moving on only with their office products and their operating systems. They were already a global business considering the fact that they many continents around the world. Concerning the Microsoft surface tablet, the business has diversified it by creating the surface pro which was an advanced version of the original product. The Current version of the tablet is Microsoft surface 3

How Microsoft uses Market penetration to sell the surface tablet?

Microsoft used marketing penetration to grow the sales of the Surface tablet by promoting it, in the hope to sell more tablets. They also make new products or update the previous the product to make sure they keep the sales up

Ansoff’s Matrix –

He used four categories in a matrix to show how there are different opportunities in the new and existing products and markets. The four categories are

• Maintain or increase the market share of current products – sales promotions, advertising
• Secure dominance of growth market
• Restructure a market by driving out competitors – this can be done by using more strict and aggressive promotional campaign
• Increase usage by existing customers-  e.g. introduce new loyalty schemes

It is not clear whether Microsoft has used this technique or not.

Survival strategies – these are the strategies that business develop in order to survive in the market industry

Survival strategies –

In 2012/13, Microsoft was forced to cut down their prices to a weak performance in the sales of their first version of the latest operating software which was built for mainly for touch screen devices. That same year their PC division also suffered a weak performance in sales.

One of the most famous products from Microsoft (Xbox One) has seen its price cut due to the fact that customers were keener to buy the same kind of product (Play station 4) from their competitors Sony. This was cause by the big difference in price between the two company‘s similar product

Branding –

Microsoft surface “Your potential. Our passion.”

The importance of branding to Microsoft in influencing the buyer’s behaviour

It is important to Microsoft because of its popularity and the fact that it is easily recognisable by customers and not just in one continent but globally. As a business they are know how people are aware of their brand when purchasing products.

How Microsoft has developed brand building positioning?

“Your potential. Our passion.” They believe giving power to people through technology will help them to understand and unleash their potential

Brand extension-

About 25 years ago, Microsoft started as an operating system company, then with time they have gradually extended by making other products. The first products they sold had the Microsoft brand on them and that was their original logo.  

A few years ago, Microsoft decided to enter other markets by designing and creating phones (windows 8) and tablets (surface) with the same logo on them. These products were part of the brand extension from Microsoft

Relationship Market –

Microsoft does offers deals for their valuable customer, they have introduced customer relationship management (CRM) which they use to reduce prices and increase profitability by automating business process that satisfies customers pays back their loyalties. They are always promoting long-term relationship with their customers. Microsoft tends to focus more on the relationship marketing as a business strategy.

Marks and Spencer

Marks and Spencer is a PLC business in the private sector, their aims is to make profit. Marks and Spencer is one of the biggest multinational retailer in the UK, it is headquartered in London.  It was originally founded by Michael marks and Thomas Spencer in the 1884 in Leeds. M and S specialises in selling home products, clothing and luxury food products. They operate in 54 counties over the world.  Today they own 798 stores in the UK alone and about 455 stores around the world including about 86 000 employees.

The aims of the business

M&S looks like it’s now achieved its aim of modernising its business which lasted three years. Now they are just trying to keep and continue on that path. They are doing this by improving their ranges and adapting them to the customers’ needs.

This year in June M & S made an announcement that they were updated their plan A which was introduced back in 2007. The update was that they were moving toward their goal of becoming the world’s most sustainable major retailer. They believe that their plan a 2020 will help them achieve their aim of becoming the world’s most sustainable major retailer by focusing on the customers, employees and the suppliers.

The objectives of M&S

Their objectives is to boost their international profit, they expect to do that by expanding its stores and online. They have said they were targeting India, china, Russia, the middle east and Western Europe to reach their expanding objectives.

Right now another objective that they have is to make its online business at least as profitable as its store division in the next three years. They have more than a 1200 customers registered online and are planning on taking this number much further in the near future.

The marketing objectives of M&S

M and S is already one of the biggest retailer in the UK amongst all the other retailers, presently they are looking to become the world’s most sustainable major retailer ahead of its competitors.  

Brand awareness- the M&S brand is renown in the clothing retail market, especially amongst woman clothing. They are said to be the best and number one woman clothing brand in the UK and possibly abroad too

How mark and Spencer uses marketing technique to sell their foods?

How M&S uses market penetration to sell their food?

Marks and Spencer use market penetration to boost the sale of their food products by promoting it with the help of different form of adverts e.g. TV, flyers and billboards, this helps them attract new customers in the food market

How M&S uses market development to sell their food?

Market development is when a business tries to find new customers for the product that they already have. M&S introduced their food products to their already existing customers e.g. in the clothing market or to other customers in the food market. This could include their competitors’ customers.

M and S recently decided to global to develop their business, they plan to open 250 more stores by 2017. They plan to focus on china, India, Middle East, Russia and Western Europe, this will help them to quicken the development of their business.

Right now they have opened two location stores in Saudi Arabia and are planning on opening 10 more in the next two year. They have also made some new sites for the lingerie and beauty concept in India.

Diversification

For the last few years, M&S has been diversifying their products and their stores locations across the globe wherever they operate. They have introduced the food market to their customers and are currently planning on improving and develop these new products further.

Survival techniques

A few years ago M and s was forced to close down 25 of it’s simply food stores and two of its regular stores which lead up to the loss of 780 jobs in the UK. This was due to the price drop in UK Like –for- Like sales. They were also forced to have a two days sale where they cut down the prices of their product by 20 %.

Ansoff’s Matrix –

He used four categories in a matrix to show how there are different opportunities in the new and existing products and markets. The four categories are

• Maintain or increase the market share of current products – sales promotions, advertising
• Secure dominance of growth market
• Restructure a market by driving out competitors – this can be done by using more strict and aggressive promotional campaign
• Increase usage by existing customers-  e.g. introduce new loyalty schemes

It is not clear whether M&S has used this technique or not as it is not stated anywhere.

Branding –

M and S is the brand name for the products

Importance of branding to M&S in influencing buyers behaviour –

The brand M and S is really important to the business and for this fact, they use celebrity and famous face to advertise and promote their brand. In one of their previous brand promotion, “the leading ladies “they’ve used the most famous women in Britain for their campaigns.

How has M&S developed brand building and positioning?

“Making aspirational quality accessible to all”

Marks and Spencer brand values are the following:

• Family
• Quality
• British
• Tradition
• Good customer services

Relationship marketing –

For their valuable customers, M&S offers special deals and prices reductions on most of their food product. This allows them and their customers to develop stronger relationships and build trust between them.

AN INFORMATION BOOKLET DESCRIBING THE LIMITATIONS AND CONSTRAINTS OF MARKETING

Task 2

P2: Limitations and constraints on marketing

Sales of goods act 1979

This refers to the rule that businesses have to ensure that the goods sell is just like it’s been described and that the quality is satisfying. Businesses need to make sure they follow this law when marketing their various activities. This law forbids the business to include any misleading information on the description of their products. Since the law on that changes, all businesses need to keep up to date with these changes to make sure they operate with the law and that the business is legal

Consumer protection/ Regulation 2008

This states that all customer of a business should be treated equally and fairly by the business they deal with. Businesses also need to ensure that they are honest when promoting their products as it could mislead the customers. For example saying that they are closing down when they’re actually not or say that they have reduced prices when they have not. Businesses are also discouraged to use aggressive techniques when promoting.

Consumer credit acts 1974 and 2006

This act indicates that business can offer goods or services on credits, also includes that companies can lend money to consumers. Before they do that they first need to be registered and licenced the Office of Fair Trading (OFT). When businesses deal that way with customers, any complaints or problems that occur between them is settled by the Financial Omsbudsman Services (FOS)

This act also wants businesses who offer loans and credits to customers give these customers regular updates on their account e.g. monthly or annual statement. If any customer is falling behind with their payments the FOS can give them more time to repay all the money they owe. This mainly designed to help customers who struggle with their payments

Customers protection distant selling regulations 2000

This regulation requires that the business provides clear information so that the customers can make decision on whether they should buy the products. Information such as the following should made clear

• Goods or services being sold
• Payments arrangements
• Delivery arrangements
• The right for consumers to cancel their orders before it’s too late  

Data protection act 1998

This act has been created to protect the personal information of customers and stop them from being wrongly used. This Act concerns any business who keeps the personal data of their clients. It is very important for businesses who keep these sorts of information to

• Acquire them lawfully
• Make sure they are used for what they say they were going to use it for
• Make sure the information acquired is correct and accurate
• Make sure the information are kept up to date
• Make sure information are processed in line with the customers rights

The acquisition of this information enables the businesses to send offers to the customers if they choose to as it would be illegal for the business to send these offers without the customer’s consents

Voluntary codes of advertising practices

The Advertisement Standards Association has policies that every business must follow when making their marketing activities. The role of this industry body is to promote and sustain the British code of Advertising, sales promotion and direct Marketing. To adhere to this code of practices, there some rules that businesses must follow when marketing. These are

• Staying in the legal framework when marketing
• Protect customer from misleading claims
• Make sure every advertisers are all on an even footing when advertising

The Advertisement Standards Authority

The Advertisement Standards Association is like the industry body that is in charge of the policies that every business must follow when making their marketing activities. The role of this industry body is to promote and sustain the British code of Advertising, sales promotion and direct Marketing.

 

Pressure group

These are organisations that are there to influence the behaviour and beliefs of businesses and the government. The information should be obtained fairly correctly in the law, they can only be used for what it was described for, information should be accurate and up to date and it can’t be kept for longer than necessary.

In the UK there are various organisations with various sizes but all fighting for the same cause, raise customer awareness on businesses. They usually do this by raising the causes for which they are fighting in the media or where the public will be able to identify it easily in order to put more pressure on either the government or the business to change what they are doing wrong

Sometime, all this could be seen as really bad and negative publicity on the business targeted and can end up damaging their images and the reputations. This can result in affecting the business’s sales because they would’ve lost most of their customers and maybe their due to the bad publicity.

Consumerism 

This is a social group movement that gives power to the consumer over businesses. It identifies the right for consumers to be safe, chose, be informed and be heard. There are some TV programs like watchdog which helps consumerisms by forcing business to be responsible for their practices and products.

Acceptable language 

This requires that advertisement and commercials need to use appropriate language and avoid doing a certain types of things. It is also been put into place to protect the viewers of unpleasant thing they might see or hear. It was especially designed for minor audiences like children

• Refer to sex
• Avoid using strong language or swear words
• Mock religions
• Show people in damaging ways

Not only that, but language for advertisement need to fit to the context to make sure they grab the attention of the views and that the get the point of the advertisement