Marketing is an indispensable part of any business to make it a success. It aspires to the needs of customer and potential customers, whether or not it is for making a profit or not.
The Principles of Marketing
Marketing is an indispensable part of any business to make it a success. It aspires to the needs of customer and potential customers, whether or not it is for making a profit or not. Nowadays, different types of media provide us with images and services intended to make us buy the product or service. Media such as the internet is an increasingly popular to advertise a product because it is being used more often.
The lifestyle of people are changing, we live in a market economy which makes it possible for consumers to be articulated. This signals the suppliers whether the products or services are in demand or not.
Marketing Mix
Marketing mix is when a complex sets of variables which a business ensures to achieve its objectives. The 4P's are mentioned below in further detail.
For a business to meet the customer needs it has to make products that are right and fit in with the 4P's. The price should be right; the goods should be sold in the right place and it should make the product known through promotion.
The word to describe market process is "mix". A mix is a content of ingredients blended together to reach a specific goal. Every ingredient is important and depends on the contribution of others. Many people have different tastes about a certain product and marketing mix can be changed fulfil the customers requirements.
To achieve the objectives the marketing mix should have a time scale. The business should indicate this. Some objectives that have already been set will be attained in the near future. The mix consists of strategic elements. These elements will form the overall strategy of the business. Decisions like this take time and a possible development of a new product or a market strategy.
If commitment is put in this programme of strategies then this will underline and determine how capable a business is of achieving its goals.
The 4P's
Product
Product is the central point of marketing energies. The product must set the customers satisfactory before it goes into production. Products come in different shapes and sizes; here are a few factors that influence a business: -
> Shape
> Size
> Colour
> Design
> Appearance
These factors come into consideration because my car is influenced by these factors. Factors such as these mentioned above are important because customers would like to choose the colour they would like for the car plus the appearance from the inside i.e. interior.
Price
Price is important for my car. These people have a lot of money to spend. The price should deter competition and should be at a considerable price ranging at prices £500,000-£650,000.
Promotion
Promotion consists of advertising a certain product to its customers and spreading the word of the product through different methods of media such as: -
> T.V
> Radio
> Newspapers
> Billboards
> Leaflets.........etc
My product is to be advertised to specific people (rich and famous) and make customers aware. Laws might have to follow if the product is advertised in a different country or state. My product will be advertised on the internet as "pop ups" and also advertised on television.
Place
My product is to be placed in show rooms that also advertise famous cars i.e. Ferrari, Aston Martin, and Bentley. These show rooms provide a launch for my car. Showrooms ...
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> T.V
> Radio
> Newspapers
> Billboards
> Leaflets.........etc
My product is to be advertised to specific people (rich and famous) and make customers aware. Laws might have to follow if the product is advertised in a different country or state. My product will be advertised on the internet as "pop ups" and also advertised on television.
Place
My product is to be placed in show rooms that also advertise famous cars i.e. Ferrari, Aston Martin, and Bentley. These show rooms provide a launch for my car. Showrooms will be located in most major town centres such as London, Birmingham, and Manchester etc.
Secondary research consists of marketing database. This is all the information gathered through market research and placed into a market database. The data base meets a variety of objectives such as evaluating new products and business opportunities, cross selling products, launching new products to potential customers, making comparisons with products of competitors. It is necessary to keep these data bases up to date with the information. The data base provides mangers with decision making for example:-
* Product decision: Analyse the market for existing products
Compare feature with competing products i.e. Lamborghini with Ferrari
Analyse customer preferences
Test concept products
* Pricing decisions: Show the trend in demand of the product
Compare competing prices
Evaluate the price
Examine customer views on the products price
* Distribution decisions: Information on new technologies that could
provide effective distribution
Enable business to cut down on distribution costs such as transport and inventory
Identify a more effective way of reaching customers
* Promotional decisions: Help notify the most appropriate type of media
to use
Information on sale techniques and if they are effective
Analyse customer reactions to sales promotion
Analyse the effeteness off advertising
Understanding and keeping up competition
The main characteristic in a market is competition. In many markets the competition can be intense. In order for the product to sell, Lamborghini's production line needs to keep ahead of competition to survive. The product should be different and the feature should attract costumer's attention in order for the product to beat off competition.
Information on different businesses is essential and requires a significant amount of research i.e. heritage, product design, elements of their marketing mix and different marketing strategies. Finding out about an organisation rivals is known as a process called competitive audit which recognizes the marketing mix of the business and the rivals. Competitive audit can be shown in a matrix that includes information on the two products. As for my product the main rival would be Ferrari because it is also a leading brand name for designing and producing world famous super cars.
There are three types of business orientations, which a business could be acknowledged under:-
* Market orientation: This consists of recognizing customer needs and foreseeing customer requirements. The business is to make a product that the consumer desires.
* Sales orientation: This consists of selling a product directly through sales promotion; meaning that businesses convince customers to buy the product
* Product orientation: This consists of producing a product and businesses consider that the product will find a "spot" in the market.
Market orientated businesses are more likely to be successful because it produces what the customers wants, but my product would fit in with sales orientation because as it is a super car it will be released into the market and it would find its way into the super car market. As my product is a car it will automatically find a place into the super car market due to it being sporty, an engine that is aimed only for the super car and the design to beat of any other super car. The cars design is specifically based for that of a super car; the engine is mounted in the rear, like a traditional super car would have.
Communicating effectively with customers
It is vital for a business to communicate with stakeholders e.g. customers, suppliers and with departments within the business. The promotional mix includes all the marketing and promotional communication methods. The methods are divided into two main areas:
* Controllable: This type of communication is used to promote the marketing objective. This includes the following:
o Advertising: Messages sent through the media
o Direct mail: This includes leaflets sent through the post
o Public relations: The business tries to make communication with the public without using different types of media
o Sales promotion: Free samples and coupons are given out
o Product presentation: The packaging and labels designed to be more attractive and catch the customers eye
o Direct selling: The person selling the product should know all about the product what he/she is selling
* Non-controllable: This method cannot be controlled e.g. word of mouth, message is spread from one person to another and so on. Customers, at present day are mainly influenced by the word "brand" or "designer label". The name Lamborghini is a brand name and is recognised by many people, so when my product is produced and "hits" the market customers will be indulged to buy it.
A strategy known as "AIDA" is particularly used to persuade consumers into making a purchase.
A - Attention: My product will attract attention on billboards and other media as well. The reason being is that my product is a super car and can make many heads turn. It will contain the car it self and a person driving around in it. It will also show different features of the car.
I - Impact: This car will have an immense impact on customers who have a lot of money to spend because the company that the car will be produced by is very well known for making expensive cars. The car specification and build is of a super car.
D - Deprive: If the customers don't buy the car, they will be missing out on a car that will surely impress the ladies. The customers will feel deprived if they don't purchase the car because they will be left out with the name and passion of the car and what it could provide.
A - Action: The advertisement will clearly show that the car is "something else". When they purchase the car I will be as if the consumer has bought a new house, with all the nifty gadgets. The will be bought in high classed show rooms, which sell cars such as Ferrari, Bentley and Porches.
Constraints
Businesses at present day face a lot of constraints in their particular market. This means that they are limited to accomplish what they producing e.g. internal and external constraints.
* Internal constraints: This may include financial difficulties i.e. capital needed to buy materials such as carbon fire, engine parts etc. other constraints may be skilled workers needed to do a certain task.
* External constraints: This includes the rivals in the same markets, so products will need to be more carefully made in order to stay competitive. Customers can affect a business because if customers don't buy the product the business will not be successful.
Business strategy
A business strategy is when a business deals with big decisions within the business. This involves the development of new products and opening up new factories, decisions that will affect the business over a long period of time and future plans. Business strategies are incredibly useful for future plans and financial factors.
* Marketing objectives: A part of the marketing plan that the business needs to meet its objectives. The objectives must be realistic and understandable to the employees so that they know what to achieve
* Marketing plan: This develops a mix of strategies which are used. Also the marketing plan identifies the opportunities in the market. The plan classifies the targets that represent an opportunity
Understanding Customer needs
A business needs to understand customer needs and the activities of competitors, before it can develop a marketing strategy. To develop a strategy it needs to have primary and secondary research. Primary research includes the following: -
* Face to face interviews: This is done by freelance market researchers. My products face to face research will not be done because it will be designated for the rich and famous. Face to face interviews include the following :-
o Street surveys: This survey is done by people being approached and are asked to complete a survey. These are mainly brief
o Shop survey: These are done when people leaving store are stopped and asked to take part
o Household surveys: This is done by interviewers going door to door asking questions
o Hall surveys: People are asked from the street to a booked hall in which they are provided with free gifts or food. This is done to encourage people to participate
o Home interviews: These are arranged and done at specific times to take place at the respondents home
o Business surveys: This is a similar type of survey to the home surveys but completed at a business.
* Focus Groups: Focus groups are a easily and cost effective way of generating new ideas for the product. They are very good at testing customer reactions and provide opinions on its use. It can be highly effective for my product because as it is car, it will need to be analysed and tested before it is been taken into the production stage.
* Panel: These consumers provide information on their buying habits and attitudes towards the product.
* Telephone interviews: This is another effective way for researchers and consumers to ask and find out information on the product. Consumer telephone numbers are provided from the telephone directory. This is a disadvantage because respondents are refusing to take place. This is not going to be used for my product because it is not suitable for what my product is intending.
* Postal interviews: This is a cheap and cost effective way and is reasonably a popular way for researchers. Consumers are bombarded with questions, but the respond rate is very low.
* Multimedia computer assisted personal interviewing (CAPI): This is an innovation of interviewing customers and attain the information needed effectively. This method is done by interviewers booking out a hotel or a venue for the interview and arrives with a laptop. The laptop provides the information on the product which the customers get to look at and have a selection of choices and colours, packages etc. on the product. This is a great way of attaining information for my product.
* Internet questionnaires: This is probably the best way to place a questionnaire because of the immense number of people connecting to the internet. The questionnaire is placed on the webpage and is complete directly and is received by the host.
* Observation: This looks at the behaviour of customers in a certain market. In this case the car industry needs to be evaluated and find new trends. This means placing the product at the right place, at the right time.
Marketing Vocational Unit: 3
Qashif Masud - 1 - Mrs.Ara
