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Table of contents
Task: 1: Be able to investigate the concept and process of Marketing in your
organization ( Sainsbury’s )....................
1.1: Compare alternative definitions of Marketing………………………………
1.2: Identify the main characteristics of a Market oriented organization such as
Sainsbury’s……………………………………………………………………….
1.3: Explain the various elements of marketing concept used in Sainsbury’s……
1.4: Identify and assess the benefits and costs of a marketing approach in Sainsbury’s
Task: 2: Be able to explore the concepts of segmentation, tageting and positioning
used in your organization (Sainsbury’s)……………………………………………
2.1: Identify and Explain Macro and Micro Environmental factors which influence
Marketing decisions in Sainsbury’s…………………………………………………..
2.2: Propose segmentation criteria to be used for two products in different Sainsbury’s
outlets……………………………………………………………………………………
2.3: Outline the factors which influence the choice of Targeting strategy in Sainsbury’s.
2.4: Explain how buyers behavior affects marketing activity in two different marketing
situations in Sainsbury’s………………………………………………………………….
Task:3: Be able to identify and analyse the individual elements of the extended
marketing mix in your company( Sainsbury’s )………………………………………..
3.1: Describe how products are developed to sustain the competitive advantage in
Sainsbury’s………………………………………………………………………………….
3.2: Explain how distribution is arranged to provide customer convenience in your
Sainsbury’s………………………………………………………………………………….
3.3: Explain how prices are set to reflect Sainsbury’s objectives and market conditions…..
3.4: Illustrate how promotional activity is integrated to achieve marketing objectives in
Sainsbury’s…………………………………………………………………………..............
3.5: Analyse the additional elements of the extended marketing mix in Sainsbury’s…........
Task:4: Be able to apply the extended marketing mix to different marketing
segments and contexts in your organization …………………………………………
4.1: Recommended marketing mixes for two different segments in consumer markets of
Sainsbury’s………………………………………………………………………………..
4.2: Explain the difference between when Sainsbury’s is marketing products and service
to organizations rather than consumers………………………………………………......
4.3: Explain how and why international marketing differs from domestic market ……….
Conclusion ……………………………………………………………………………….
References………………………………………………………………………………...
Self evaluation……………………………………………………………………………..
TASK:1: BE ABLE TO INVESTIGATE THE COCEPT AND PROCESS OF
MARKETING IN YOUR ORGANISATION (SAINSBURY’s)
1.1: Compare alternative definitions of marketing
Definitions:
Marketing term appeared firstly in United State in the early 20th century and then spread
to Europe and Asia. In the meantime, there are many definitions of marketing given by
leading organizations and experts in the fields of economy such as: Kotler, CIM, AMA
According to Chartered Institute of Marketing, 2008” The management process
which identifies, anticipates and supplies customer requirements efficiently and
profitability”
According to American Marketing Association, 2007“Marketing is the process of
planning and executing the conception, pricing, promotion, and distribution of ideas,
goods and services to create exchange that satisfy individual.”
According to Phillip Kotler, 2003” Marketing is the social process by which individuals
and groups obtain what they need and want through creating and exchanging products
and value with others and organization goals.”
Comparison: All three definitions mention specifics of marketing and given a concept
about marketing. One important thing in three definitions mention is that marketing help
companies closer with their customers and help them to make profit. Product which has a
large number of buyers demonstrate the competitiveness of that product on the market is
high and proportional to the profit of manufacturers. It means that company’s marketing
strategy is successful. All these definitions imply that satisfying customer is the purpose
of marketing. However, each of them has different point.
1.2: Identify the main characteristics of a market oriented organization such as
Sainsbury’s.
Marketing-oriented organizations stay close to the customers and ahead of the
competitors. They understand the basics principle that the purpose to a business is to
attract and satisfy customers and profit. Companies achieve market orientation by
managing the following factors: 1. Shared values 2. Organization 3. Strategy 4.
Stakeholders.
Shared values: All decisions are taken in market-oriented companies whit the shared
value of customer first. All the decision and actions support the basic value of providing
superior product quality and service to the customers.
Organization: The organization of the market-driven company includes organization
structure, policies and culture. Changing the company’s organization structure and
polices are not very difficult, but the real challenge is to create a company culture such
that everybody in the company aims to delight customer.
Strategy: Strategic planning in market-oriented companies are long-term, participative
and flexible. They are based on clearly defined long-term objectives. The strategies are
flexible in the face of rabidly changing environment and markets.
Stakeholders: Today’s firms have recognized the importance of understanding and
sustaining the needs or expectations of its stakeholders consisting of customers,
Employees, shareholders, suppliers and intermediateries. To achieve its objectives, a
company y must satisfy at least the minimum expectations of each group of stakeholders.
1.3: Explain the various elements of the marketing concept used in Sainsbury’s
The marketing concept holds that the key to achieving organizational goals consists of
being more effective than competitors in integrating marketing activities towards
determining and satisfying the needs customers. Following are various elements of
marketing concept.
Production orientation: the focus of the business is not the needs of the customer, but of
reducing costs by mass production. By reaching economies of scale the business will
maximize profits by reducing costs.
Product orientation: The company believes that they have a superior product, based on
quality and features and because of this they feel their customer will like it also.
Sales orientation: The focus here is to make the product and then try to sell it to the taget
market. However, the problem could be that consumers do not like what is being sold to
them.
Market oriented: the organization tries to understand the needs of the customer by using
appropriate research methods, processes are developed to make sure information from
customer is feed back into the heart of the organization.
FIG:1
1.4: Identify and assess the costs and benefits of a marketing approach in
Sainsbury’s
TASK:2: BE ABLE TO EXPLORE THE CONCEPTS OF SEGMENTATION ,
TARGETING AND POSITIONING USED IN YOUR
ORGANISATION(SAINSBURY’S)
2.1: Identify and explain micro and macro environmental factors which influence
marketing decision in Sainsbury’s
FIG:2
Macro Marketing Environment: The Macro marketing environment takes into account
all factors that can influence an organization, but are outside of their control. There are
six major factors.
Political environment: It includes all laws, govt. agencies and lobbying groups that
influence or restrict individuals or organizations.
Economic environment: It consists of all factors such as salary levels, credit trends and
pricing patterns that affect consumers spending habbits and purchasing power.
Socio-culture environment: It includes institutions and other forces that affect the basic
values, behaviors and preferences of the society all of which have and effect on consumer
marketing decisions.
Technological environment: it consists of those forces that affect the technology which
can create new products, new markets and new marketing opportunities.
Legal environment: it also affects an organization ever though a company can’t directly
influence any laws lobbying or becoming part of a trade organization is widely accepted
in helping to shape particular legal decision.
FIG:3
Micro environment: The micro marketing environment consists of certain forces that
are of and organizations marketing process but remain external to the organization.
Current and potential customer: customers are vital to the growth and sustainability of
your company. In order to grow a company must locate customers, understand their
needs and then satisfy those needs both efficiently and profitability.
Competitors: competitors however have the same remit as you when it comes to
sourcing and satisfying the needs of the customer, but they also response to your
campaigns and to predict what they will do tomorrow.
Intermediaries( distributors/wholesalers/retalers): a business may require a network
of wholesalers, distributors and retailer. These intermediaries provide an invaluable
service in getting your products to the customer.
Suppliers: on other important area to consider in the eternal marketing environment is
supplier. A key supplier can be an important part of a business and may ever attribute to
your competitive advantage. Losing important suppliers can interrupt production flow or
your competitive edge and prevent you from getting your product to the customer.
Key steps in environmental analysis of marketing environment:
1 Audit of environmental influences.
2 Assessment of the nature of the environment
3 Identification of the key environmental forces.
4 Identification of the competitive position
5 Identification of the principal opportunities and threats (SWOT)
6 Strategic position as a result
2.2:Propose segmentation criteria to be used for two products in different
sainsbury’s outlets:
Segmentation: segmentation is a marketing management technique which can help firm
find ways of establishing a competitive advantage. A market segment is a section of a
market which possesses one or more unique features that both give it and identity and set
it apart from other segments. There are some segmented criteria to be used for the
products in different markets.
Geographical location: As geographic location can tell a great deal about buyer or buyer
group. From geographical location you can tell whether people are more likely to buy ice
cream or soup, whether they are more likely to have a fireplace or swimming pool
Installed.
Socioeconomic background: it is slightly more difficult to generalize with
socioeconomic background as attitude and personality across groups can vary massively.
However, as we know that a top end clothing store would do less well in a working class
area than it would in an expensive area of London or New York for example.
Age: the age of a target market is very important. A product should be designed with
some age range in mind so that marketing campaigns can be targeted accordingly.
Producing a brand new stat of the art scooter and then advertising in a SAGA newsletter
would not work whereas advertising it on TV between kids programs would work.
2.3: Outline the factors which influence the choice of the targeting strategy in
Sainsbury’s
Targeting strategies: once a firm has identified the market segments it wishes to target,
it needs to develop effective targeting strategies for these segments. Following factors
influencing choice of targeting strategy:
Stage of product market approach: segmentation strategies are most critical during the
maturity stage of the product market, because buyer’s needs are different. If product type
substitution exists, the new market entrant may benefit from targeting on or more
segments in the existing product market. Where there are no product type substitutes, a
broad or relatively undifferentiated targeting strategy may be appropriate at the
introductory state of life.
Extent of buyer differentiation: a product market made up of a relatively small number
of end users is more suitable for a broad or relatively differentiated targeting strategy,
particularly if the value of purchase of individual buyer is small.
Market position: a firm’s market share in an existing product market plays an important
role in determining the target market strategy that it uses. Low market share firms have to
compete in segments where their strengths are most highly valued and where large
competitors are unlikely to compete.
Structure and intensity of competition: when several firms are competing in and
industry, selective targeting is often an appropriate target market strategy. Such
selectivity is often essential for small firms in fragmented, transitional and global
industries. Large firms may be able to reap the benefits of extensive targeting using a
multiple segmentation strategy.
2.4 Explain how buyer behavior affects marketing activities in two different buying
situations in Sainsbury’s
According to Blackwell, Miniard and Engel 2001.p.6,” Consumer behavior is the
activities people undertake when obtaining, consuming and disposing of products and
service.”
It is not just the buying of goods and services that receives attention in consumer
behavior but, the process starts much before the goods have been acquired or bought.
Buyer behavior affects marketing activities in two different buying situations in
Sainsbury’s on the basis of following factors:
Marketing analysis: market analysis requires an understanding of the 4-C’s which are
consumer
Conditions
Competitor and
The company
A study is undertaken to provide customer value, which is the main objective of the
company. For providing better customer value we should learn the needs of the customer,
the offering of the company, its competitors and which economical, physical,
technological etc are.
Marketing segmentation: the market is divided into segments which are a portion of a
larger market whose needs are similar and they are homogeneous in themselves. Such
segments are identified with similar needs. Market segmentation on the basis of :
Identify product related needs
Group customers with similar need sets
Describe each group
Select target market
Marketing strategy: strategies are formulated to provide superior customer value. In
formulating market strategies, the 4P’s are directed at the target market.
Product
Price
Promotion
Place
Consumer decision process: the decision making process consists of a series of steps
which the consumer undergoes. Steps of decision process:
Problem recognition
Information search (external and internal)
Evaluation and selection
Store choice and purchases
Post purchase behavior
TASK:3: BE ABLE TO IDENTIFY AND ANALYSE THE INDIVIDUAL
ELEMENTS OF THE EXTENDED MARKETING MIX IN YOUR
COMPANY(SAINSBURY’S)
3.1 Describe how products are developed to sustain the competitive advantage in
Sainsbury’s:
According of academy of marketing science,2000” sustain competitive advantage is
the prolonged benefit of implementing some unique value creating strategy not
simultaneously being implemented by any current or potential competitors along with the
inability to duplicate the benefits of this strategy”
When a firm sustains profits that exceed the average for its industry, the firm is said to
possess a competitive advantage over its rivals. The goal of much of business stragety is
to achieve a sustainable competitive advantage.
FIG: 4
Michael porter identified two basic types of competitive advantage:
Cost advantage or differentiation advantages: cost and differentiation advantage are
known as positional advantages since they describe the firm’s position in the industry as
a leader in either cost or differentiation.
Resources: resources are the firm specific assets useful for creation a cost or
differentiation advantage and that few competitors can acquire easily. Following are
some examples of resources:
Patents and trademarks
Proprietary know how
Installed customer base
Reputation of the firm
Brand equity
Distinctive competencies: the firm’s resources and capabilities together form its
distinctive competencies these competencies enable innovation, efficiency, quality and
customer, responsiveness all of which can be leveraged to create a cost advantage or a
differentiation advantage.
Capabilities: capabilities refer to the firm’s ability to utilize its resources effectively. A
capability is the ability to bring a product to market faster than competitors.
Value creation: the firm creates value by performing a series of activities that porter
identified as the value chain. In addition to the firm’s own value creating activities, the
firm operates in a value system of vertical activities including those of upstream suppliers
and downstream channel members.
3.2 Explain how distribution is arranged to provide customer convenience in your
Sainsbury’s
According of American Marketing association “the distribution channel as the
structure of intercompany organization units and extra company agents and dealers,
wholesalers and retailers through which a commodity, product or service is marketed.”
The route taken by goods as they move from producer to consumer is known as “channel
of distribution” an agent, a wholesaler and a retailer these middlemen constitute the
channel of distribution of goods.
FIG: CHANNEL OF DISTRIBUTION:
Direct channel: in this channel, producers sell their goods and services directly to the
consumers. There are no middlemen present between the producers and consumers. The
producers may sell directly to consumers through door to door salesmen and through
their own retail stores.
Idirect channel: if producer is producing goods on a large scale, it may not be possible
for him to sell goods directly to consumers. As such he sells goods through middlemen.
These middlemen may be wholesaler or retailers.
This channel is used under following conditions:
When the goods carter to a local market
When the retailers are big and buy in bulk but sell in smaller units, directly to the
consumers departmental stores and super bazaars are examples of this channel.
3.3 Explain how price are set to reflect Sainsbury’s objectives and market condition:
Few companies proactively manage their business to create the conditions that forester
more profitable pricing. The difference between price setting and strategic pricing is the
difference between reacting to market conditions and proactively managing them.
Marketing and finance can work together toward a common goal to achieve profitability
through strategic pricing.
Competition-driven pricing: in this policy, pricing is a tool to achieve sales objectives.
Price cutting is probably the quickest, most effective way to achieve sales objectives; it is
usually a poor decision financially. Since a price cut can be so easily matched, it offers
only a short term competitive advantage at the expense to permanently lower margin.
Customer- driven pricing: most of companies now recognize the fallacy of cost based
pricing and its adverse effect on profit. They realize the need for pricing to reflect market
conditions. As a result, many have taken pricing authority away from financial manager
and given it to sales or product manager.
3.4 Illustrate how promotional activity is integrated to achieve marketing objectives
in Sainsbury’s:
PROMOTION refers to using method of communication with two objectives:
Informing the existing and potential consumers about a product
To persuade consumers to buy the product
it is an important element of marketing mix in the absence of communication, consumers
may not be aware of the product and its potential to satisfy their needs and desires. There
are four tools of promotion mix: advertising, personal selling, sales promotion and
public relation. Thus, promotion mix is a company’s total communication program
which consist of different blends of its components and which is used to achieve the
company’s marketing objectives.
Advertising: advertising is an impersonal form of communication for which the seller
pays in order to promote a physical product or service. It may be in print form, audio
form an audio visual form.
Personal selling: personal selling is a personal communication with one or more
prospective buyers for the purpose of selling a product and service.
Sales promotion: sales promotion means the use of short term incentives which are
designed to encourage immediate purchase of a product or service by the buyer. It
includes offer of discounts, free gifts, free sample, coupons, demonstration, store
display etc.
Publicity: publicity takes place when a favorable presentation is made through mass
media about a product and service. It covers people who don’t entertain personal selling
and sales promotion approaches.
3.5 Analyze the additional elements of the extended marketing mix in Sainsbury’s
marketing mix: it is the process of designing and integrating various elements of
marketing in such a way as to ensure the achievement of enterprise objectives. Element
of marketing mix: product, price, place, promotion.
Additional elements of extended marketing mix: people, process, physical evidence.
People: an essential ingredient to any service provision is the use of appropriate staff and
people. The company hires and train staff that would represent their company to the
market
Process: it refers to the systems used to assist the organization in delivering the service.
Physical evidence: physical evidence is the element of the service mix which allows the
consumer again to make judgments on the organization.
TASK:4: BE ABLE TO APPLY THE EXTENDED MARKETING MIX TO
DIFFERENT MARKETING SEGMENT AND CONTEXT IN YOU
ORGANISATION:
4.1 Recommend marketing mixes for two different segments in consumer markets of
Sainsbury’s
There are countless ways how consumer’s need could be satisfied. Also there are many
ways how can consumer comprehend a newly established need, as some new product or
service appears. Their diversity of possibilities, by which one company is reaching their
consumer, is literally countless. This communication, exchange, link or flow can be
described four main characteristics. The product, product distribution, price and
promotion are known as marketing mix 4P’s
Product and consumer market: the product needs to satisfy a certain consumer’s needs.
The product need to satisfy consumers in terms of quality, as well as other intangible
assets that some products can offer. This can be the strength of the brand, emotions,
prestige, multifuntionality etc.
Product distribution and consumer market: by only having the product it is not
enough for the company to run their business. It needs to be available to their consumers.
This means that the consumer needs to be in situation to find his in certain outlets. This is
call distribution of product.
Price and consumer market: when you have the product and have placed product at the
reach of the hand of consumer, there is one more stem, before exchange of values
between supplier and shopper and that is price. The consumer needs to pay for his
product, before the transaction closed. So if the product is affordable, the consumer will
buy it.
Promotion and consumer market: there are many companies that give similar product
at similar conditions. In this situation every company need additional wind in a back that
will improve the marketing position and assure a certain competitive advantage. In order
to tackle this situation there are number of promotional method to be use in consumer
market.
4.2: Explain the differences between when sainsbury’s is marketing products and
service to organizations rather than consumers
4.3 Explain how and why international marketing differs from domestic marketing:
DOMESTIC MARKETING :When we look at a domestic market, we look at the
market we are familiar with. A market where we share the language and habits so that
creating the image and brand for the product is easier to understand
The domestic market uses the same currency as your business. Transporting goods
happens easily and directly from your door or your supplier’s door to the client’s door.
The laws are common or at least similar between states or provinces. The way business is
done in the domestic market is known.
INTERNATIONAL MARKET: When you deal in an international market, you have
different languages, and in many countries the way business is done varies. Even the
united states like Canada and México, have different laws governing business and then
when you go to other parts of the world, general operations and laws can vary even more.
Then there is fact that patents and copyrights vary. So if you manufacture in an Asian
country to sell in America, you may find that a knock off product come onto the Asian
market shortly after you begin manufacture.
Reference:
(PRINCIPLES & PRACTICE OF MARKETING, BY JIM BLYTHE, 2007)
BUSINESS MARKETING: TEXT & CASES, 3E BY HAVALDAR, 2010
STRATEGIC MARKETING: AND INTRODUCTION BY TONY PROCTORS,
2000
CONSUMER BEHAVIOUR BY JIM BLYTHE, 2008
(DISTRIBUTION AND SALES MANAGEMENT, SAI RAMACHANDRAN AND
C.V. RAMANAN 2002)
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