Table of Contents
Section 1: Conceptual ‘Soft’ Underpinnings of Marketing.
1.1 Marketing concepts.
1.2 Conceptual scope of marketing.
1.3 Scope of digital marketing in the present business world.
1.4 Merits and limitations of the marketing concept
1.5 Marketing myopic.
1.6 Speciality and characteristics of the A.G Barr Plc and industry sector
Section 2: Financial ‘Hard’- Business Performance Analysis.
2.1 Ratio analysis.
2.2 Analysis of Cash Flows Statement
The term ‘marketing’ is a significant factor for a business. The activities of marketing are expanding day by day, where modern marketing focuses on several factors of business (Palmer, 2014). The purpose of this report is to educate the owner and manager of the firm regarding the merits, scope and limitations of contemporary marketing thinking. This report takes two distinct but complementary paths: Conceptual ‘Soft’ Underpinnings of Marketing, and Financial ‘Hard’. The first part defines the key underpinning definitions of Marketing, the conceptual scope of marketing, merits and demerits of marketing scope, and marketing myopic. Then, this section explains the specialties and characteristics of a technology company and industry. The second part analyzes the financial information provided by A.G Barr plc and demonstrates the benefits of marketing for the technology organization.
Section 1: Conceptual ‘Soft’ Underpinnings of Marketing
1.1 Marketing concepts
The term “marketing” has been defined in several ways by different experts. The concept of marketing has been changing over time because of the customer changing needs and expectations. Kotler et al. (2015) define the term “marketing” as the set of activities as well as a process for exchanging and delivering marketers’ offers to their valuable consumers. Palmer (2014) said, “Marketing refers to strategic activities of a business to ensures values for the consumers by motivating and meeting the consumers chaining needs and demands”. Payne (2015) said that marketing is not only offering products or services to the consumers, it also builds up brand image, brand equity, nurtures innovation, builds up a strong relationship with customers and retains them for a long time basis.
1.2 Conceptual scope of marketing
According to Kotler et al. (2015), the concept of marketing first developed during the 1850s recognized as a simple trade era, which shifted to the production era from 1860 to 1920, then shifted to the sales era from 1920 and 1940. From 1940 to 1960, the concept of marketing was known as the marketing department era, which shifted to the marketing company era from 1960 to 1990. The newly proposed marketing called relationship marketing introduced during the 1990s to 2010. Then, the concept of digital marketing has been popular from 2010 to the present.
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Figure 1.2: Evolution of marketing Source: Kotler et al. (2015)
Scope of Marketing
The early 1900s -1960 Era
The marketing concept first developed during the 1900s bringing the concepts of distributing and exchanging goods to the customers (Kotler et al., 2015) which shifted to ‘market orientation’ during the 1940s. In this marketing era, a widely recognized market model called the AIDA model was applied to investigate the customers and market and offer the right products to meet customer demands (Hanlon, 2014). Applying this model, marketers created awareness and interest among customers through advertisements through different channels like TVs, radio magazines and newspapers, posters, trade fairs, etc. Then, to promote customers to buy the products, marketers developed strategies such as free gifts, sales promotion, personal selling, direct mailing, special credit terms, etc.
The key limitation of the marketing concept in this era was it did not motivate or include customers’ activities, which promoted marketers to the next marketing era (Palmer, 2014).
The 1960s-1990s Era
In this era, the decision-making activities, as well as the concept of the marketing mix (product, place, price and promotion), came under deep consideration of marketers (Kotler et al., 2015). In addition, marketers focused on product values and added features to achieve competitive advantages (Lee and Carter, 2015). A model called the ‘Hierarchy of Effect Model’ was widely used in this era to monitor and track consumer buying behavior and promote customers to increase revenue. The key weakness of this marketing era was marketers faced difficulties to repeat selling, advocacy, and loyalty, which forced the marketers to move to the next marketing era (Palmer, 2014).
Relationship Marketing Era (1990s 2010s Era)
Relationship marketing introduced during the 1990s and was very popular until the 2010s. In this era, marketers mainly tried to develop stronger relationships with the customers to retain them (White, 2012). The ‘Rational Decision-Making Model’ was a widely applied model in this marketing era, which focused on the six-stage buying decision-making process shown in the diagram (Garritan, 2014).
The key advantages of this marketing era are marketers were capable to build up long time relationships with their potential and target customers. For example, Tesco gained huge success through the development of the Tesco Club Card concept. However, the marketers failed to interact with their customers directly, which has forced the marketers to move in the next marketing era (White, 2012)………