Table of Contents
1.1 Explain the various elements of the marketing process.
1.2 Evaluate the benefits and costs of a marketing orientation for a selected organization, called Nike
2.1 Show macro and micro environmental factors that influence marketing decisions.
2.2 Propose segmentation criteria to be used for products in different markets.
2.3 Choose a targeting strategy for a selected product/service.
2.4 Demonstrate how consumer buyers’ behavior affects marketing activities in different buying situations
2.5 Propose new positioning for a selected product/service.
3.1 Explain how products are developed to sustain competitive advantage.
3.2 Explaining how distribution is arranged to provide customer convenience.
3.3 Explaining how prices are set to reflect an organization’s objectives and market orientation
3.4 Illustrating how promotional activity is integrated to achieve marketing objectives.
It is essential for marketers to understand the principle of marketing to gain organizational goals and objectives. This paper first outlines the definition of marketing, marketing orientation and marketing process. Then, this paper conducts a business environment analysis focusing on both external and internal business environments. Next, the paper discusses market segmentation, specification of the target market, buyers’ behaviors as well as positioning. Then, this paper looks at the key elements of the marketing mix including product development, product lifecycle, promotion and distribution options, and pricing strategies. Finally, this paper focuses on how marketers can develop a marketing mix to meet the needs and expectations of their different target customer groups.
This task is completed based on a selected company, named Nike Inc. This is one of the famous brands in the sportswear equipment industry which was established in the US. Now, this is the leading supplier of sports equipment, athletic shoes and apparel across the global market. It has more than 30,000 employees who are serving millions of customers every week across the world. It gained more than £20 billion of revenue only in 2015 in retail stores under the Nike town name. The logo of Nike is shown in the figure. Nike has now gained more than 50% of the US market share. It has also gained 35% of the UK market share. It has been able to reach this improved market through its ‘word of foot’ advertising, rather than mass media advertising such as advertising through TVs (Nike Annual Report, 2015).
1.1 Explain the various elements of the marketing process
Definition of marketing
The term “marketing” is defined by several experts in different ways focusing on market orientation and customer changing needs and expectations. Kotler and Armstrong (2010) defined marketing as the social process through which both marketers and individual customers meet their needs and expectation by creating and exchanging values with others.
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Kotler et al. (2014) said marketing refers to the process by which organizations can create values for their target and potential customers to gain values from those customers in return. Palmer (2012) described marketing as the management process for anticipating, specifying, and satisfying customer needs and expectations. The Chartered Institute of Marketing (2012) defined marketing as the activity and process for delivering, exchanging, communicating and creating offerings that have values for the business stakeholders mainly for the customers. American Marketing Association (2012) said marketing is the oldest human activity which is now regarded as the most updated business discipline.
The element of the marketing process
An effective marketing process follows a number of steps, which is shown as follows:
The marketing process: Situation analysis ® Marketing Strategy ® Marketing budget ® Implementation and Control.
Situation Analysis: this is the first and essential step in successful marketing. This is because the marketers first need to analyze the reasons, cost and effect, opportunities and threats of potential marketing. In this case, it is essential to identify the customers changing needs and expectations along with their own business environment and capabilities. For conducting an effective, marketers can use different tools and techniques discussed as follows:
- Marketing audit: marketers need to conduct a marketing audit. The marketing audit can include internal audits and external audits. The internal business audit focuses on business operations, performance, and activities. On the other hand, the external audit focuses on business outside opportunities threats, forces and challenges.
- 5C Analysis: the marketers can analyze the company’s own activities, its existing and target customers, existing and new competitors, collaborators and business stakeholders, and climate and cultural issues.
- Environment analysis: it can be internal analysis and external analysis. The internal business environment can be analyzed mainly by using the SWOT technique, SWOT means strengths, weaknesses, opportunities, and threats. The strengths and weaknesses defined through this analysis mainly come from its internal business situation. On the other hand, the external business environment can be analyzed using the PESTLE tool and Porter Five Forces Model analysis. PESTLE means political, economic, social, technological, legal, and environmental issues. Porter’s Five Forces include customer bargaining power, supplier bargaining power, the threat of new entrants, existing competitive rivalry, and threats of substitutes.
Marketing Strategy: in this stage, the marketers need to develop marketing strategies based on the result come from the situational analysis. Firstly, marketers need to develop a marketing mission and vision, aims, and objectives. Then, it is essential to develop strategies. For developing marketing strategies different tools and models can be applied. For example, Porter Generic Model can be applied to develop cost leadership strategies. Ansoff’s Growth Matrix (Model) can be applied to develop the market and products in the target market. Then, marketers can apply targeting strategies to attract specific customer groups. Then, the segmentation strategy can be applied to attract a particular market and customer segment. Next, the positioning strategy can be applied to define and gain a target market position in the competitive market. Finally, the marketing mix strategy can be applied to develop a product, pricing of products, distribution channels and promotion issues.
Marketing budget: in this stage an effective marketing budget should be developed by the marketers. The standard marketing budget should about 2% of total business revenue. In this stage, the marketers need to allocate a budget for different marketing channels, distributions and promotional offers. Then, marketers need to forecast sales and expected profits.
Implementation, Monitor, and Control: In this stage, the marketers implement the strategies developed in the previous stage. Then, the developed strategies are being monitored from time to time. When the marketers see that any strategies are not effective, or anything taken as marketing strategies are not providing the expected outcome, the marketing managers take necessary steps to control and improve the performance…….