I have been asked to produce a marketing strategy for an existing or new product on the market in the U.K. The strategy will be based on the four P's, Price, Place, Promotion and Product.

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Contents Page

Terms of Reference 2

2 Procedure 2

2.1 Text 2

2.2 Electronics 2

2.3 Organisations 2

2.4 People 2

3 Findings 2

3.1 The Principles of Marketing 3

3.1.1 Understanding customers needs 3

3.1.2 Marketing aims and objectives 3 Objectives 4

3.1.3 What marketing has to achieve to be successful 4

3.1.4 Marketing principles related to my product 5

3.2 Primary and Secondary Marketing Information 6

3.2.1 Analysis of research methods 6 Implementing market research 7 Primary Research Methods 8 Secondary Research Methods 11

3.2.2 Secondary Research 12 Evaluating Research 14

3.2.3 Primary Research 14 Evaluation of Results 21

3.3 Methods of analysing marketing opportunities 21

3.3.1 PESTEL analysis 21

3.3.2 SWOT analysis 24

3.4 Developing marketing strategies 25

3.4.1 Marketing Models 25 Ansoff Matrix 25 The Product Lifecycle 27 Boston Matrix 29

3.5 Creating a strategy that meet customer needs 30

3.6 Marketing Strategy 31

3.6.1 Targets 31

3.6.2 Short Term Goals 31

3.6.3 Long Term Goals 31

3.6.4 The Four P's 31 The price part of the 4P's 31 The Product part of the four P's 35

3.6.5 Promotions 38 Branding 38 Advertising 39 Why do firms advertise? 39 The Place part of the four P's 40

4 Conclusion 40

4.1 How is my marketing strategy based upon the principles of marketing 40

4.2 How my market research affected my choice of marketing strategy 41

4.3 How external influences affected my choice of marketing strategy 41

5 Evaluation 41

5.1 How likely is it that my strategy will succeed? 41

Terms of Reference

I have been asked to produce a marketing strategy for an existing or new product on the market in the U.K. The strategy will be based on the four P's, Price, Place, Promotion and Product. I am going to use primary and secondary research to enhance my report. I will analyse my strategies to see if they are appropriate for the consumers needs and wants.

2 Procedure

I am going to use the following sources for the my report.

2.1 Text

When I am writing this report I will use textbooks, newspapers and magazines. Theory books are going to be a lot of use in this report as they will have a lot of information which will prove to be of great use.

2.2 Electronics

The internet is going to be a lot of use in this report as I will be able to access and use secondary research from the internet. I will also be able to access my products website which has a lot of information about their past and what they are doing to the company to try and expand and increase their market share.

2.3 Organisations

When I am doing this report I will make visits, look at the annual report of the business and try to analyse the company as a whole.

2.4 People

I might make a get in contact with the business or even make a visit. This will enable me to interview some of the customers and staff.

3 Findings

I have chosen to produce my report on a car. I have chosen the Mercedes Benz Estate, the E Class. This car has recently been altered and is now being sold in the UK with prices from £27,380.

3.1 The Principles of Marketing

A dictionary definition of marketing is 'the business of selling goods including advertising, packaging, etc.' The etc is important because it is what marketing is about; the identification and satisfaction of customers' needs and wants. Advertising and packaging are only a small part of this process.

The Chartered Institute of Marketing defines marketing as 'the management process responsible for identifying, anticipating and satisfying customer requirements profitably'.

Marketing is the management processes of identifying, anticipating and satisfying the needs of actual or potential customers, whether for profit or not.

3.1.1 Understanding customers needs

When marketing a product, organisations need to be able to identify the needs of both existing and potential customers. It is also necessary to be able to anticipate future trends and developments which could influence customers' demands. For example an organisation holding furniture would need to increase it stocks if there was an upturn in the property market.

Marketing involves constantly reviewing all aspects of a product or a service in order to ensure that it continues to satisfy potential customers wants. This involves satisfying the four P's;

* Having the right product

* At the right price

* At the right time

* At the right place

Successful businesses put the customer first, they are customer orientated; it responds to customers demands for new products. The business is dynamic and responds quickly to changes in the market.

3.1.2 Marketing aims and objectives

An example of an aim is to 'increase sales'; a marketing objective could be to 'increase sales by 20% over the next six years'. The difference is that an objective is quantified and precise, it must also show a quantified time period. An objective should be S.M.A.R.T. (specific, measurable, achievable, realistic and timed). Targets should motivate staff and be the basis for planning and decision making.

Every business should have its own objectives. They will depend on the demands of existing and potential customers. Here are a few examples of business objectives that relate to customers' demands; Lloyds TSB would want to sell more financial products, such as mortgages and loans. A college might wish to attract more adults onto higher GNVQ level courses.

When we look at business we see several common objectives. Objectives

* To increase sales revenue (for example, by 21 percent over two years).

* To increase market share (for example, by 4 percent over 10 years). Market share is the proportion of the market served by a particular business. Being 'Number One' means that you can use economies of scale

* To maintain/improve product and business image. Companies spend millions on promoting and protecting image.

* To give quality assurance. Total Quality Assurance (TQA) is now recognised as vital if a business wants to increase its sales and meet it's customers' demands. Quality assurance began as a method of controlling production. Today these are applied to all aspects of the business and marketing is no exception.

The first aim of a business should be to provide a 'quality service' and a 'quality good'. ISO 9000 is the international standard. In order to achieve TQM the business will have to make sure that:

* Management and workforce are committed and focused on quality

* Everything the business does is for the customer

* Everyone is seen and treated as a customer

* The business should know the customers' problems and needs. This means having a customer care service where they have the principles of once a customer, always a customer.

Marketing objectives provide a vision of what the business intends to achieve. They are important to its survival.

3.1.3 What marketing has to achieve to be successful

Businesses have to create and keep customers. This means businesses have to identify and understand the needs of customers. This means they have to create quality products, at the right price and in the perfect condition.

Keeping ahead of the competition is very important to becoming a successful company. Many markets are competitive businesses have a lot of competition, businesses have to continually improve their products and services.

Communication within the business is vital. Communication with customers to satisfy their expectations is important if you wish to continue supplying them. This is probably more important than anything else in the marketing department. As the continually following up the customer, making sure everything that the company does is of a high standard and how we can do better.

3.1.4 Marketing principles related to my product

A few years ago Mercedes Benz altered their marketing strategy for their E-Class Estate. They altered the product part of the 4 P's. They have made their product more luxurious and more desirable. Mercedes have their 'MobiloLife', which is a round the clock emergency assistance scheme which allows drivers to call for immediate technical assistance, any time, anywhere in Europe. This will appeal to many potential customers.

Mercedes have also altered the promotion part of the 4P's. They advertise the car in magazines which a potential customer would be reading. They advertise in a variety of magazines, which have a many different audiences. For example they advertise in Country Life which would be read by the older generation and Vogue which is a magazine which is read by the younger, fashionable, affluent person.

I feel that they have changed the target market. Ten years ago you would only see the older generation driving a Mercedes estate. But over the past few years Mercedes have changed their target group. They advertise in younger people's magazines and have changed the product so it will appeal to the younger generation as well as the older generation.

Mercedes have a slogan 'Committed to you. For the lifetime of your car.' Mercedes a promoting themselves as a caring organisation, which has a good after sale assistance.

When marketing my product I intend to identify customers' needs wants. I will carry out extensive research into what existing and potential customers expect from Mercedes. I will be trying to satisfy the four P's.

Mercedes have not altered to price or place of the 4P's. It would be very hard for Mercedes to alter their 'place', as they sell their cars from Mercedes dealerships.

Mercedes have a reputable image I will try to continue this. I will review customer service polices.

3.2 Primary and Secondary Marketing Information

3.2.1 Analysis of research methods

Why carry out market research?

Market research enables companies to anticipate what customers want. When companies launch a new product, they are submitting themselves to a lot of risk. If the new product or services fails they will have lost the capital that they put into developing and producing the new good. This can be millions of pounds when you are looking at larger companies. For example with Mercedes when they bring out a new car, they spend millions of pounds, designing, testing and developing it. A good reputation or image can also be lost if a company produces a product that is not popular. To minimise these risk companies invest in market research. Market research is not always viable if the cost of producing the wrong product is low.#

Market research can be very costly. Nevertheless, costs vary, according to the sample size and research method used. Time is another factor business take into account when they are researching a new product. If a company takes to long researching and developing a product, a rival company may launch a product before they do, causing losses. Different research methods take varying amounts of time to conduct.

If research is not up to date then it become invalid. Secondary research isn't always suitable as it has to be adapted to be suitable for the content it is being used for, because when it was first researched, it was researched for another cause.

Primary research is carried out for the first time to collect first hand or primary data from actual or future users of the product. Data is often collected from the street or work place.

The data is collected for a purpose, and will be original. It will be upto date when it is researched. It can be used to provide answers and establish a database.

Business do not always do primary research themselves they often go externally of the business. Using an agency is often cheaper than a company doing the research themselves.

Market research has been defined as, 'systematic problem analysis, model building and fact finding for the purpose of improved decision making in the marketing of a good or a service. To put this simply it means getting the information for identifying the customer's needs and wants and spotting the market opportunities and trends.

For a company to achieve maximum sales, a organisation needs to identify its customers and market the product for these target customers. This process is called allied to market segmentation and means dividing the market into segments. This can be done by age, sex, income, geographical area or lifestyle. Marketing can then by focused on the chosen group of people. Implementing market research

These are the stages that I have identified for carrying out a market research survey

Stage One

Define what information needs to be collected. If you are trying to research into a problem you need to be very sure what the problem is before you commence with any actual research. Decide what market segment is being target for the product, this will enable you to do research with the right group of people.

Stage Two

Plan the investigation. Some of the things that need to be considered before research begins:

* The deadline for completion

* The complexity if the issues (more complex issues take longer to investigate)

* The cost which are involved

* Whether the survey is to be local, regional or national

* The biggest question is whether is can this research be done with the budget given.

Stage Three

Collect the data. A sample will have to be selected.. The type of sample required will depend on the requirements of the investigation
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Stage Four

Organise the data. Once the data has been collected it needs to be counted.

Stage Five

Analyse the data. The data needs to be interpreted so that it is in a format that can be used to market the product.

Stage Six

Present the information.

Stage Seven

Make conclusions and recommendations from data that has been collected. Primary Research Methods

There are five basic methods that can be used for collecting information

The choice of method will be determined by many factors. For example, ...

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