what is marketing and John Lewis Marketing
Marketing
Marketing is all about indentifying and meeting customer needs. Many business consider this so important that they are said to be marketing led. In this case, everyone in the organisation is trained to put the customers first- from the production worker, who has to produce high quality goods, to accounts clerk, who must respond to customer enquiry promptly and accurately.
The importance of marketing
Many companies today claim that their main aim is to satisfy consumer needs. Instead of having to sue hard-selling techniques to persuade customers to buy these market- led companies sell goods easily because they produce what consumers want.
There are four main kinds of market:
Industrial markets: the market for manufactured products aimed at businesses, i.e. capital goods e.g. engineering, construction.
Consumer markets: the market for goods and services that are sold to households e.g. clothing, shampoo, holidays.
Commodity markets - market for primary products or raw materials e.g. steel, coal, coffee.
Financial markets: the market for services that dealing with money e.g. banking, insurance, accounting.
The marketing process
A firm will gather information about the marketplace, and then research consumers' needs. From this, it will identify who its market is, and then put together a marketing plan based on the findings. The marketing mix will be central to this, and finding the right balance in each of the 4Ps is very important. The firm can then review and adapt their plan when they need to.
* Although marketing is consumer-orientated, the main aim is still to be profitable.
* A good marketing manager will try to differentiate their product (i.e. make their product stand out against similar competitive brands).
* Whatever pricing decision is made, the most important factor is to breakeven.
* Making it as easy as possible for the customer to buy the product will help sales to increase.
The 4Ps and the marketing mix
The 4Ps are the ideas to consider when marketing a product.
* Product
* Price
* Promotion
* Place
Product - A product can be either a good or a service that is sold either to a commercial customer or an end consumer (In economics, consumers are individuals or households that "consume" goods and services generated within the economy). A customer buys a product, and a consumer uses it. Sometimes these are one and the same, as an industrial firm can also be a customer and a consumer. For example, British Airways might buy aero planes from British Aerospace, so it is a customer.
* Brand-trade name: a name given to a product or service
* Warranty- A guarantee provided to the purchaser regarding the condition of appliances and certain fixtures.
* After Sales Service- Services received after the original goods or service have been paid for.
* Durability- The ability of product to resist any fault.
* Features- Characteristics of a product or service.
* Quality-the characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
John Lewis's dedicated Merchandise Standards department works with their buying teams to make sure that every product they sell is safe to use and fit for purpose because they want their customers to be satisfied and that all their own-label branded and exclusive products comply with all relevant consumer legislation and safety standards. Working with their suppliers as partners is fundamental to delivering high quality goods and services to their customers, whether they shop at Waitrose or John Lewis, in shops or online, or buy services from Greenbee. Their Constitution states that the John Lewis Partnership's 'relationships with its suppliers must be based, as with its customers, on honesty, fairness, courtesy and promptness. It looks for a similar attitude throughout its supply chains.
John Lewis try to give full detail of the product, so John Lewis tries to put leaflets with all the features so their customers should not have any problem for e.g. below picture is taken from the magazine:
John Lewis give warranty on their every product so customers can claim their refunds or repair that product if they have warranty receipt.
They try to sell a wide variety of products like;
Home and garden- Electrical appliances-
Technology-
Sports and leisures-
Fashion-
Gift -
Toys
Baby
...
This is a preview of the whole essay
John Lewis try to give full detail of the product, so John Lewis tries to put leaflets with all the features so their customers should not have any problem for e.g. below picture is taken from the magazine:
John Lewis give warranty on their every product so customers can claim their refunds or repair that product if they have warranty receipt.
They try to sell a wide variety of products like;
Home and garden- Electrical appliances-
Technology-
Sports and leisures-
Fashion-
Gift -
Toys
Baby
Price- No matter how good the product is, it is unlikely to succeed unless the price is right. This does not just mean being cheaper than competitors. Most people associate a higher price with quality. For example so if we would expect to pay more for a Rolls Royce than for a Lada. On the other hand, is one cola worth more than another, and if so, how much?
Discounts- The amount a price would be reduced to purchase a commodity of lesser grade
John Lewis: 'Never Knowingly Undersold'
'Never Knowingly Undersold' - is a John Lewis unique promise to their customers that each branch actively checks the prices of shops in the local area and if they find the same product being sold at a lower price, they reduce their local price to match - has been their slogan for over 75 years. Every John Lewis shop has a team that checks the prices of local competitors, and they also encourage all Partners to discover these 'undersales', and give them a bonus each time they spot a lower price elsewhere. If they miss one, and a customer finds that one of their products is sold for a lower price by another local retailer, they will lower their shelf price so that all customers benefit, rather than just the customer who spotted it. The comparison must be with exactly the same item (brand, model, colour, size etc) and they expect the competitor to offer the same availability on their item as they do because if they don't do that they can can't attract the customers towards their shop (eg they have it in stock if we haveit in stock).they match the shelf-edge price at which the competitor displays the item for sale to customers generally, but not a negotiated or special price for particular individuals (eg their store card holders).they expect the goods to be offered on equivalent terms, and so they take into account any 'hiddenextras' charged by the competitor, such as deliverycharges for items that normally have to be delivered.Their commitment to checking and lowering prices applies on the same basis to products in their competitors' Sales. Where a competitor has a veryshort term promotion lasting only one or twodays, they may not have enough time to check and change each price. However, their refund promise still applies.John Lewis and Waitrose do not price match in respect of outlets which are not normal shops, eg membershipclubs, market stalls, duty free shops, mail order catalogues or the Internet. Similarly, they do not match closing down sales as these are not trading as normal shops.Find the same item selling for less in any UK shop, and they will refund the difference.Because they do not wish custmoers to regret buying from them ,they allow customers up to 28 days from the date of purchase to claim this refund.In addition their promise to customers extends beyond the local area to cover any normal shop in theUK (where John Lewis customers find the same item on displayat a lower shelf-edge price with the same availability and terms).While they normally try to obtain special orderlines which are not part of their standard offer, they reserve the right to refuse such orders where itwould be uneconomic for them to do so
online and catalogue sales: 'Never Knowingly Undersold' doesn't apply to johnlewis.com and John Lewis Direct catalogue prices, because it is difficult to make straightforward comparisons with conventional shops. However, they give customers the same high levels of service and good value they find in their department stores when they shop online or through the catalogue.
Waitrose's 'Price Commitment'
Waitrose's 'Price Commitment' is their promise to bring customers quality food that is honestly priced and represents excellent value. Each week they check the price of more than 350 of the everyday items like bread, toothpaste and milk against those in other supermarkets, to make sure their customers are getting consistently good value for money.
They are committed to keeping prices for customers as low as possible, but not at any cost. They pay their suppliers fair prices, and believe in paying for quality: what food tastes like; where it comes from; whether it contains additives; and, if it's an animal product, how the animals have been treated.
Promotion- The main aims of promotion are to persuade, inform and make people more aware of a brand, as well as improving sales figures. Advertising is the most widely used form of promotion, and can be through the media of TV, radio, journals, cinema or outdoors (billboards, posters). The specific sections of society (market segments) being targeted will affect the types of media chosen, as will the cost For example: If you were a toy manufacturer, you might want an advertising spot during children's TV. If you ran a local restaurant, you might choose a local paper or radio.
* Advertising -a public promotion of some product or service.
* Sponsorship -A "long term" advertising relationship that typically involves the payment of a fixed fee to display a banner or other graphic on a website, or be included in an email newsletter.
* Direct marketing-Sales and promotion technique in which the promotional materials are delivered individually to potential customers via direct mail, telemarketing, door-to-door selling or other direct means.
* publicity -a message issued in behalf of some product or cause or idea or person or institution; "the packaging of new ideas"
John Lewis want to attract all the customers to their shop so they use many kinds of methods to promote their latest schemes and their latest product. Nowaday's they try to attract their customers for their Christmas shopping: for that they put some posters in their shops to promote their Christmas offers like:
As we can that John Lewis try to advertise their Christmas offers on their website and in store.
Electronic commerce
E- Commerce (buying and selling over the internet) has transformed the way that lot of buying and selling is done in this country in recent years.
There are two main types of E-commerce:
> B2B (business-to-business)
> B2C (business-to-consumers)
A website can be used to provide information on the product/business, or provide a pace where sales can be made. If sales are required then there needs to be a link to a warehouse for goods, so despatch can be made.
Costs and benefits of using e-commerce
The main costs of using e-commerce for a business are:
The benefits for a business of using e-commerce are:
> R Using websites to advertise more widely.
> R Small business can access wider than local markets.
> R Can market directly to past customers via email.
> R Selling to larger markets.
> R Reduces cost of sales (especially through purchasing online).
> R Attracts new customers
Place-Distribution channels are the key to this area. A firm has to find the most cost-effective way to get the product to the consumer. Direct marketing through catalogues, via a TV shopping channel and through the Internet have become popular, because the consumer can shop from home.
John Lewis is situated on Kingston high street which is the core shopping area of Kingston. John Lewis helps their customers to find the stores by offering a webpage to find their nearest store. So people can find John Lewis stores easily.
For the firm, they can cut out the middleman in the process, and can therefore make more profit. Going through wholesalers and high-street retailers, however, is the most popular form of distribution, as that is still where most people shop.
The marketing functions
* Carrying out the market research to obtain feedback on potential and existing products and/ or services.
* Analyzing market research response and advising senior mangers of the results and implications.
* Promoting products and service through a variety of advertising and promotional methods, e.g. press, TV, online, direct mail, sponsorship and trade shows or exhibitions.
* Obtaining and updating a profile of existing customers to target advertising and promotion appropriately.
* Producing and distributing publicity materials, such as catalogues or brochures.
* Designing, updating and promoting the company website.
Market research
Market research is the collection of information or data to better understand what is happening in the market place. A firm's marketing department needs to know about economic trends, as well as consumers' views. Based on this information, they can put together a marketing plan, which will meet their own needs as well as those of their consumers.
There are two general types of research:
* Primary or field research- Obtaining new data for a specific purpose. The marketing department of a firm or a specialist research organisation can provide this. Typically, the data is gathered by face-to-face interviews, by telephone or by post, using questionnaires. This is called a survey.
* Secondary or desk research- This is the use of existing data that has already been collected. It can be anything from a company's own sales statistics to Department of Trade and Industry reports. Other secondary sources of information include journals, company reports, government statistics, and surveys published by research organisations.
The research process
Marketing departments need to have information so they can get their marketing mix right. For example, they will want to know what similar products already exist and how much they cost. They will also want to know whether consumers will want to buy their new product, and what they think about it. The process for doing this is as follows:
. Identify a problem
2. Set objectives
3. Gather data
4. Analyse data
Set objectives
Business has to decide which are going to be the best ways to gather this information. They choose the most appropriate reports and journals. Depending on how much time they have, choose what field research they can do. Designing questionnaires and testing products on consumers can take a long time. They may also have to decide whether they have the necessary skills, or whether they need to use a specialist research organization. This is a more expensive option.
Gather data
They would usually do desk research first, because it is cheaper and quicker. Then supplement this with field research, so that they don't duplicate their findings. Designing the questionnaires and conducting the surveys takes place during this phase.
Analyse data
Now they have the findings, they have to work out what they are telling to us . if they identified their objectives before they started. They must look for trends and patterns. Then they should see how this affects their marketing mix.
John Lewis only the ask comment on their service form their customers so they can improve their service. John Lewis gives a small feedback sheet which customers have to fill them out.
Product life cycle
What is a product life-cycle?
During its life every plant and animal goes through a series of stages, involving birth, growth maturity and eventually decay. In the same way product have a life cycle, although the patterns varies.
The life of a product is the period over which it appeals to customers. We can all think of goods that everyone wanted at one time but which have gone out of fashion.
Sales performance and profitability
The sale performance of any product rises when the product is introduced to the market reaches a peak and then goes into decline. Most products have a limited life- cycle. Initially the product may flourish and grow, but eventually the market will mature and product will move towards decline.
At each stage in the product life-cycle, there is a close relationship between sales and profits, so that as originations or brands got into decline their profitability decreases.
Reaching the market
What is meant by distribution?
Delivery or distribution as it is commonly called makes products available to customers where and when they want them. Place is a very important part of the marketing mix. It does this through four main distribution channels:
Marketing mix
The marketing mix deals with the way in which a business uses price, product, distribution and promotion to market and sell its product.
The marketing mix is often referred to as the "Four P's" - since the most important elements of marketing are concerned with:
Product - the product (or service) that the customer obtains.
Price - how much the customer pays for the product.
Place - how the product is distributed to the customer.
Promotion - how the customer is found and persuaded to buy the product.
It is known as a "mix" because each ingredient affects the other and the mix must overall be suitable to the target customer.
For instance:
High quality materials used in a product can mean that a higher price is obtainable.
An advertising campaign carried in one area of the country requires distribution of the product to be in place in advance of the campaign to ensure there are no disappointed customers.
Promotion is needed to emphasise the new features of a product.
The marketing mix is the way in which the marketing strategy is put into action - in other words, the actions arising from the marketing plan.
http://www.tutor2u.net/business/gcse/marketing_ecommerce.htm
http://www.digitalpaint.co.uk/images/pg-E-Commerce.jpg
http://www.tutor2u.net/business/gcse/marketing_distribution.htm
http://www.tutor2u.net/business/gcse/marketing_kinds_of_market.htm
http://www.johnlewis.com/Home+and+Garden/Area.aspx
http://www.johnlewis.com/Electrical+Appliances/Area.aspx
http://www.johnlewis.com/Technology/Area.aspx
Marketing (Mayank Sharma)
