Table of Contents
P1 Describe how marketing techniques are used to market products in two organizations.
P2 Describe the limitations and constraints of marketing.
P3-Describe how a selected organization uses marketing research to contribute to the development of its marketing plans.
P4 Use marketing research for marketing planning.
P5 Explain how and why groups of customers are targeted for selected products.
P6 Develop a coherent marketing mix for a new product or service.
Marketing is the study and management of exchange relationships. The American Marketing Association has defined marketing as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”It is the process of interesting potential customers and clients in your products and services. The keyword in this marketing definition is “process”; marketing involves researching, promoting, selling, and distributing your products or services.
It’s a huge topic, which is why there are tomes written on marketing, and why you can take a four-year marketing degree. But essentially marketing involves everything you do to get your potential customers and your product or service together. Marketing techniques are one of the ways that a business would do to increase its productivity and sales. Two different organizations are selected here to describe how marketing techniques are sued to market products. These two organizations are the Chinese Medical Association (CMA) and Primark. Primark is a fashion and clothing company in the United Kingdom, whereas the Chinese Medical Association (CMA) is a charitable organization in China (The Chinese Medical Association, 2018).
P1 Describe how marketing techniques are used to market products in two organizations
Overview of the Chinese Medical Association (CMA)
The Chinese Medical Association (CMA) is a nonprofit national academic organization in China. It is an important social force in the development of medical science and technology and linkage between the government and the medical professionals. Established in 1915, the CMA now has 88 specialty societies and 677,000 members in china. Major functions of the CMA include: developing domestic and international medical academic exchange activities; discovering, recommending and cultivating medical talents; editing and publishing 180 medical and popular science journals including print and electronic, books and over 2000 audio-visual products; carrying out continuing medical education projects and training specialists; implementing medical project evolution and review and as well as science and technology decision-making demonstration; selecting and presenting awards for outstanding achievements in medical science and technology; promoting transformation and practical application of medical research results; disseminating medical and health knowledge for the general public; organization technical appraisement on medical malpractice and adverse events following immunization (AEFI); undertaking the functions and missions entrusted by the government, and relaying suggestions and requests from the medical professionals to the government (Chinese Medical Association, 2018).
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Chinese Medical Association (CMA)’s marketing techniques
Branding: Branding is the process that is included in making a unique name and image for the products in the customers’ minds. Chinese Medical Association (CMA) uses branding to meet the needs of its target customers (Kotler et al., 2014). For example, customers can easily recognize what a Chinese Medical Association (CMA) looks like because the logo of the Chinese Medical Association (CMA) can be seen. Thus, branding is a useful asset to meet its marketing objectives such as market penetration and raising the customers’ awareness.
Brand Extension: The Chinese Medical Association (CMA) used to sell different programs but they expanded their businesses by taking the risk of producing new programs. Brand extension is a technique of launching a new product by using an existing brand name on a new product in a different category (Kotler et al., 2014). This made the Chinese Medical Association (CMA) expand more of their business services because the brand extension has helped them in meeting their marketing objectives.
Relationship Marketing: The Chinese Medical Association (CMA) uses relationship marketing to build long-term relationships with customers. Relationship marketing is a marketing activity that is targeted at developing and handling long-term relationships with a huge proportion of customers (Kotler et al., 2014). For example, the Chinese Medical Association (CMA) arranges several events inviting local community people and parents. This makes the Chinese Medical Association (CMA) relationship towards success because they value their customers.
Overview of Primark
Primark offers a diverse range of products, including newborns and children’s clothing, women’s wear, men’s wear, homeware, accessories, footwear, beauty products, and confectionery. The company sells clothes at the low-cost end of the market with below-average prices. Along with retailers such as Zara and H&M, Primark contributes to the contemporary fast fashion trend. According to an article about Primark in the Economist, “For many shoppers, Primark has an irresistible offer: amazing trendy clothes at amazingly low prices. The result is a new and even faster kind of fast fashion, which forces consumers to buy heaps of items sometimes even the same ones to use when the first ones worn out, discard them after a few wears and then come back for another batch of new outfits (Primark, 2018).
Primark’s marketing strategies
Primark has been operating in the UK competitive market. The marketing strategy, therefore, is to communicate key brand messages to target markets – families primarily, then teens/young adults. The main objectives that must be met through this strategy are:
- Deliver volume objectives in terms of individual customers
- Deliver profit objectives
- Maintain brand leadership status within the UK
- Underline the Primark business
One of the marketing strategies of Primark is the growth strategies and it is divided into four different categories.
Growth Strategies: A growth strategy entails introducing new products or adding new features to existing products. Sometimes, a small company may be forced to modify or increase its product line to keep up with competitors. According to Kotler et al. (2014), the growth strategy is the strategy that most businesses use to expand their customers’ markets for the products of the company which was developed by Ansoff in 1941. Ansoff’s growth matrix helps most businesses to plan their products for their market growth strategy. It also proposes that businesses try to increase on either business need to market new or present products in new or present markets. Growth strategies are strategies that seek growth in the business and it consists of:
- Market Penetration: To the present market by marketing present products,
- Market Development: For the present market by developing a new market,
- Product Development: For the present market and by marketing new products,
- Diversification: For new markets by marketing new products.
Diversification: Growth strategies in business also include diversification, where a small company will sell new products to new markets. This type of strategy can be very risky, according to gaebler.com. Primark will need to plan carefully when using a diversification growth strategy. Marketing research is essential because a company will need to determine if consumers in the new market will potentially like new products.
Product Development: Primark’s customers would be more likely to purchase it because most customers want the idea of bonus features. Product development is very suitable for business which wants to remain competitive in the market by differentiating its products. For example, once Primark customers’ have purchased a product that Primark is marketing, Primark could offer them an expansion pack that contains bonus content. As a result, Primark would make more profits because of the further development of its products and services.
Market Development: A market development growth strategy, often called market development, entails selling current products in a new market. There several reasons why a company may consider a market expansion strategy. First, the competition may be such that there is no room for growth within the current market. If a business does not find new markets for its products, it cannot increase sales or profits. A small company may also use a market expansion strategy if it finds new uses for its product. For example, a small soap distributor that sells to retail stores may discover that factory workers also use their products. However, Primark can maximize its business in the new markets including the EU and other international market.
Market Penetration: One growth strategy in business is market penetration. A small company uses a market penetration strategy when it decides to market existing products within the same market it has been using. The only way to grow using existing products and markets is to increase market share, according to the article “Growth Strategies” at gaebler.com. Market share is the percent of unit and dollar sales a company holds within a certain market vs. all other competitors. One way to increase market share is by lowering prices. For example, in markets where there is little differentiation among products, a lower price may help a company increase its share of the market (Chron, 2018).
P2 Describe the limitations and constraints of marketing
Sale of Goods Act-1995: Laws control the value of food, a system of marketing that helps people to get healthy food products. Sales of Goods Act 1995 influences business marketing activities because it means that any type of advertising should define their products exactly. For example, most anti-bacterial products advertise that their products can kill germs 99.9%. This is because if the advertisement said that it kills germs 100% and it did not work according to what they advertised then they can be sued by the customers for making false statements.
Consumer Protection from Unfair Trading 2008: In the UK government tries to ensure the consumer’s right to take proper healthy food. This act enables all the businesses’ customers to have the fair kind of treatment from businesses that the customers deal with. For example, there are some businesses that do not treat their customers such as there is no proper accommodation from the businesses’ staff when the customers ask for help. This act also allows businesses not to use untruthful promotions. For example, if a business claims they are having discounts on every item when there are really no discounts on every item……………