- Fairly obtained
- Purpose of use must be lawful
- Only used for the reason stated during collection
- The information must be adequate, relevant and not excessive in relation to the intended use
- It must be up to date
- Not kept for longer than necessary
- Protected against any unauthorised use
Ethics are moral principles or rules in society of conduct that is accepted by most members in society and this is also used in business.
There are different types of ethical issues that may effect organisations such as:
- Legal Constraints and Consumer Law
An organisation can have many legal constraints that it has to deal with such as social, ethical and environmental constraints on marketing.
Legal constraints and consumer law which are also relevant to common law and statutory law which protects consumers and makes sure that marketing is carried out properly and responsibly. The suppliers and the makers of the product owe a duty of care to the consumers to make sure that their product is not in any way harmful to the customers if it is he or she can bring a claim to the producer. A number of Acts of Parliament have strengthened consumer protection.
Legal Constraints and Consumer Law are taken into consideration because the business or organisation would not like someone to claim against the company and don’t want to harm any of the consumers with it products because they want a good reputation for the business.
Data Protection came into force in 1984 to protect consumers. Organisations that hold information have to register it with the data protection registrar and have to agree with the guidelines and accuracy and security.
Data Protection Act is taken into consideration in a business or organisation because they want the consumers to feel protected and notified if there is any information that the company would like to keep on them. The business wants the consumers to feel if they can trust them with information regarding them and that the information can been seen by that person.
Voluntary Constraints have voluntary codes of practice are statements by a committee or organisation about methods of working which is recommended as good practice. The code does not have any legal backing but use other ways of encouraging compliances.
Voluntary Constraints are important to the business because although it has no legal backing for the business it uses other ways of encouraging compliance. This is where the organisation makes sure they follow the process and requirements of the law.
- Pressure Groups and Consumerism
Pressure groups and consumerism they are formed by people with common interests who join together as a group who want to further their interest. Pressure groups watch other organisation and influence them on how they act. Consumerism can also be defined as a “social movement seeking to argument the rights of buyers in relation to sellers” The consumers have four main rights and they are: rights to safety, right to choose, right to be informed and the right to be heard.
Pressure Groups and Consumerism is important to the organisation behaviour because it lets the organisation help to recognise the concerns of environmental issues, health concerns, and animals’ right, personal and business ethics. These are all issues that the organisation can use to make their company a better place to work and for the consumers as well because it has an effect on other people.
These are all linked to the Marketing principles, which are:
- Understanding consumer needs
- Keeping ahead of the competition
- Communicating effectively with consumers
- Using new technology
Understanding consumer needs: It is essential to look for new products and develop new products because the consumers are may want something different and better and market change rapidly and it important for organisations to look for better products than the ones they have already got so that the business doesn’t find itself operating in a declining market and instead in a growing market.
Keeping ahead of the competition: Is a very important part for a organisation to make sure that are expand their business with new ideas and products to make a bigger profit. This also means more competition for other brands or business in the same market. Also by offering new services and promote products or service in a more different and effective way.
Communicating effectively with consumers is a necessary for the organisation to succeed. Even if the best product is distributed at the right price to a target audience can experience poor sales and should be taken considered very carefully, because the promotional support may be very ineffective to the target audience making the product decline in the market.
Using new technology: This has developed of the year which is also increasing business to consider because machinery is much more efficient and accurate and employers may be placed by machinery because of it and also because it would be a lot more cheaper and more efficient to get a machine to do those things for you more organisation have considered of buying machinery than hiring more people.
Ethical issues have a major impact on marketing principles because it sets rules to what a marketing team needs to be aware of and what that marketing team can and can’t do.
Cadbury Schweppes have a commitment to human rights. They respect human right and also have and ethically and fundamental way to work. They cover area such as core labour and dignity at work, health and safety in the workplace, fair remuneration, diversity and respect for difference and also opportunity for development.
The makers and the suppliers of any product owe a duty to the consumer to make sure that the product that are selling and advertising. The international code is to ensure that advertising is legal, honest, truthful, socially and does not prevent competition to other products or services.
There are different areas of research where you can look at this is called Market orientation this means that they find out what people want before they develop the product.
Market segmentation is the division of a market into identifiable segments each having their own customer profile and buying characteristics. The firms produce brands especially for this segment.
If you are to gain a visible market segment from your overall target group then there are a few rules that you should follow to ensure that.
- You must be clear and specific in the segment you have identified
- You must have a group of hard facts to what you think the segment group might be
- You must only segment one which you hope to achieve
- Have a realistic target don’t go for something that will be impossible to achieve
- Must ensure that you will make a profit from chasing this market segment
- Always follow the largest segment first and place the other secondary.
Market segmentation can be described in different way such as:
- Demographic – age, sex, social class
- Personality – extrovert introvert
- Geographic – urban, rural
- Behavioural – occasional users regular users
Task 1b
The purpose of marketing research is so that it helps to aim and achieve in an organisation and helps to make effective marketing decisions this is done by doing evaluation of data.
Marketing research helps organisation achieve their overall objects by helping them to identify market opportunities and use to access and improve marketing activity and also helps by revealing important consumer information which helps to improve quality of marketing.
Marketing research helps organisations in a number of ways to find out information about their market and business and also other markets and business. It helps identify the areas of which you are targeting with your product or service but also helps to understand what customers want and need.
There are a number of ways of grouping and identify certain areas in the market this is called market segmentation but it is not jus splitting up the market area it is finding out information to help you know what it is that customers would pay good money for.
There also are four types of research in marketing research and they are:
- Primary research this helps to find out information by using a direct approach of you actually finding the research out the information yourself also known as field research.
- Secondary research uses information that is already carried out by someone else for some other purpose not necessary the same purpose as you but you are using that other person’s research to help with your research also known as desk research.
- Quantitative research is research with the use of number and figure for example it uses the number and percentage of consumers that are aware of a particular product or service. It can be use to measure sales including those of its competitors and helps estimate market share and segment size etc…
- Qualitative research provides the organisation with information regarding why people buy and what really does motivate them to buy etc…
There are six essential benefits to marketing research and they are:
- To increase over capability and understand essential research concepts and provide an improved ability to make informed decisions
- Provides a effective opportunity to supplement
- Facilities a common knowledge bridge with parties involved in the research process
- Provides a specific starting point for the people entering the profession
- Gives companies an objective tool to help develop and promote employee
- Assists researchers in understanding and differentiating between good research practices and those which undermine objectives and impartial research
There are three types of themes in marketing research and they are customers, competitors and marketing environment.
Customer or market provides you information on market segment size, market trends and how they can be forecasting future customer needs. Brand share including competitors and also customer preferences such as their lifestyle etc…
Competitors are the overall aims and objective and also compare products with each other to find out the better price, distributing methods and promotional methods etc…
Marketing environment provides information on political, ethical, and social and technology influences.
Research helps Cadburys Schweppes to understand customers, competitors and market environment. Marketing environment is also an area where marketing research can be carried out such as political influence, economic influence, social influence and technological influence.
Cadbury Schweppes uses research to understand the customers. Cadburys can research to see what customers and provides information to Cadburys Schweppes on the market and market segment size. Also by using market trend they can forecast future consumer needs. They can also research information on customer preference such as their colours, lifestyle, and dietary requirements etc…
Cadburys Schweppes can also research information on competitors and their overall aims and objectives and what they are trying to achieve. They can also compare products, prices, distribution methods and promotional methods. They can also look at competitor’s profits and financial situation to get ahead of the competition.
The Cadburys Schweppes research on customers helps it to understand the products and innovative measurable progress so it can help the to make aims and objectives for their company such as reducing fat, sugar and salt for their core brands.
Marketing to children is also a concern to some customers Cadburys Schweppes marketing code defines the special care to be taken when advertising to children aged 8-12. Respecting the roles of parents and encouraging pester power and no use of fantasy characters, celebrities or a placement that confuses or encourages inappropriate or over consumption.
Portion sizing and variety and moderation this helps consumers and customers to have a broader range of options to choose from.
Task 2 P3
For this task I will be discussing marketing analysis tools to apply SWOT, PESTLE. and Product Life Cycle Analysis to Cadburys Schweppes.
Swot analysis stands for:
STRENGHS
WEAKNESS
OPPORTUNITIES
THREATS
To carry out a SWOT analysis it requires research into the organisation current position and future position the analysis is used to match an organisation’s strengths and weakness with the external market force in the business environment.
A SWOT analysis can be used for decision making in business to decide what their aims and objective will be. There are many different reasons to what a SWOT analysis can assess such as a companies position in the market, a method of sales and distribution, a product or brand, a business idea, changing supplier and an investment opportunity and many other reasons to what a SWOT analysis can assess. The marketing plans of a business is put together in addition to a business plan contains detail of objectives, costs, forecast revenues and constraints.
I will use SWOT analysis to identify the strength and weakness of Cadburys Schweppes but also the opportunities and threats of the organisation.
Cadbury Schweppes has many strengths because it is a worldwide brand and very successful. Cadbury has a well-known brand name and the logo is recognised by many people and has been around for a very long period of time. This can also increase sales by having a recognisable and distinctive logo. Also Cadburys sets targets for themselves and promote and advertise Cadburys to increase sales and their catch and effective slogans. Cadburys is a very large established business and has a very good reputation that is a very good strength also it has very good advertisement. We already know that Cadburys promotes it products with Coronation Street TV soap. This is a chance for Cadburys Schweppes to advertise any new products that they would like to and increase sales. Cadburys also have a large market audience that they attract of all ages so there is something for everyone.
As well as having its strengths Cadburys also has it weakness such as unmotivated staff in the work place could cause a lot of problems for the company. If Cadburys has unmotivated staff there could be a big problem in the production line because Cadburys need people for packing and delivering the products. Another weakness for Cadburys could be a too big a demand for the company and they may not be keep up with the orders for the product especially when staff a re not motivated.
Opportunities for Cadburys are that they can get sponsor and promote their products by advertising at important events such as sporting events this will increase sales especially if the product was been sold at the sporting events. Cadburys also have the opportunity of diversifying into a different market besides the snack market they could do something entirely different or they could still do the same thing but bring out a different range of products that are aimed at a different audience such a line of healthy products for children at school or adults. They could also develop their promotional strategy by using large marketing strategies.
Cadburys also has its threats are their prices because other companies are competing with Cadburys because it is a very popular and well-known brand so they might copy ides from Cadburys and sell them at cheaper prices than Cadburys. But because Cadburys has a very good reputation and is a popular brand it maybe less likely to happen. Cadburys Schweppes has a lot of threats from competitors such as Nestle, because they are also a company that make chocolate products and both companies have very good ideas so they might take customers away from Cadburys. Also companies that sell healthier food may be a threat to Cadburys because parents may refuse to give their children chocolate treats and may prefer them to eat healthier so it is seen as a threat because Cadburys might loose sales from it. There also is the threat for Cadburys of more companies diversifying into the chocolate market and taking consumers away from them and decreasing the sales.
The Pestle analysis is a useful tool for understanding risks associated with market growth or decline, and as such the position, potential and direction for a business or organisation. The Pestle Analysis is often used as a generic 'orientation' tool, finding out where an organisation or product is in the context of what is happening out side that will at some point effect what is happening inside an organisation.
Pestle is an acronym for Political, Economic, Social, Technological, Legal and Environmental factors, which are used to assess the market for a business or organisational unit. The Pestle analysis headings are a framework for reviewing a situation, and can also be used to review a strategy or position, direction of a company, a marketing proposition, or idea. There are many variants on this model including pest and steeple.
Political factors can have a direct impact on how the business runs. Decisions of the government affect people everyday of their life and can also e called policies or legislation. There are different laws that may affect the business and the way it operates such as the government’s statuary minimum wage and so do the consumers health and safety laws. For example whether the UK changes from pounds and pennies to using a European currency with euros has a dramatic impact on businesses.
Every business is affected by economical factors nationally and globally. There are policy that have been set accordingly such as interest rates and fiscal policy. UK’s climate of economy affect the way consumers can behave in society today. This can also affect consumer confidence or and behaviour whether it is successful or not. Economies have had a major impact on UK business because it means cheaper labour abroad the competitiveness of UK products nationally and globally.
Social factors affect you within society such as family, friends, media affect interest and your opinions. All of these things change your interest and opinions and make you think more about the society you live and also influence your opinion. For an example media talks about people health and how obesity is rising in the UK today and more dietary schemes are being published in newspapers, magazines, and on television. A result of this is more people are joining the gym to stay healthy and it is promoting more business towards leisure centres and gyms.
Technological factors changes the way the businesses is run because the Internet is having a massive impact on business and more companies and organisation are using the internet today to help direct business towards them. And consumers can shop when ever they would like to from where ever they are this is a beneficial for business because they can offer more to the consumers.
A market is defined by what is addressing it, be it a product, company, organisation, brand, business unit, proposition, idea, etc, so be clear about how you define the market being analysed, particularly if you use pestle analysis in workshops, team exercises or as a delegated task. The pestle subject should be a clear definition of the market being addressed, which might be from any of the following standpoints:
- A company looking at its market
- A product looking at its market
- A brand in relation to its market
- A local business unit
- A strategic option, such as entering a new market or launching a new product
- A potential acquisition
- A potential partnership
- An investment opportunity
Be sure to describe the subject for the pestle analysis clearly so that people who are contributing to the analysis, and those seeing the finished pestle analysis, properly understanding the purpose of the pestle assessment and implications.
A product life cycle can be divided in to several stages characterised by the revenue generated by the product. If a curve is drawn showing product revenue over time.
Introduction: Sales are slow, as the product is not yet known. Costs are high due to heavy marketing spend to create awareness. Emphasis is on advertising and distribution. The recently launched Cadbury Snaps range is an example of a brand at the introduction stage.
Growth: This stage shows growing market acceptance and increasing profits. Competitors begin to enter the marketplace. The business concentrates on optimising product availability. The Cadburys Snaps range then grew and developed as well creating different flavours and different proportions for people.
Maturity: The rate of sales growth slows down as the product has been widely distributed and sold. The company now focuses on creating brand extensions and promotion offers to boost sales. New product research is critical to ensure future sales. The Cadbury Snack range is an example of a brand at the maturity stage.
Saturation: Sales slow down as the market becomes saturated. Profits level off and may even decline due to increased investment in marketing to defend against competitors. Cadburys has had sales slow down due to salmonella contamination in January and products had to be called back cause a decline in business.
Decline: Sales slow down dramatically and profits fall off. The product may be dropped to make way for new products and the cycle recommences. Cadburys is known for it chocolate and sweet range of products but to say Cadburys was to start selling Cadburys chips they wouldn’t be the most popular brand of chips and it may decline dramatically.
