MARKETING PRINCIPLES

Marketing Principles

Marketing Principles

1.1

Marketing

Marketing is described by the Chartered Institute of Marketing as the management process which helps to identify, anticipate and provide customer requirement efficiently and profitably (Franklin et al, 200p. pp.55). Understanding of marketing is by knowing needs and wants of the customer through Marketing Research. Marketing process starts with defining segmentation, targeting and positioning of the product.

STP

Segmentation

Market segmentation is the process to divide consumers into identifiable segments or distinct groups, which helps the company to propose strategy accordingly. Segmentation is done on the basis of various variables (Davies et al, 2003. Pp.32).

Geographic variables, e.g. region, climate, urban or rural.

Demographic variables, e.g. gender, age, marital status, education, income, culture, purchasing power.

Psychographic variables, e.g. opinions, attitudes, personality, beliefs, values, lifestyle.

Behavioral variables, e.g. product usage, value of purchase, consumer need required.

Targeting

Targeting is the process of diving groups of people having similar needs (Blythe, 2009). Targeting helps the company to decide which segments have to be covered with the company's marketing mix. A company may choose from three basic strategies, which are;

Concentrated marketing: it is also known as a single segment or niche market, which involves covering specialized segment of the market.

Differentiated marketing: it is also known as multi-segment, where company can choose two or more segments of the market.

Undifferentiated marketing: in this strategy a company offers its product for a mass market.

Positioning

Positioning is the process, where a company tries to create a perception of the product in the customer's mind. A company seeks to differentiate its brand from that of competitors' brands by highlighting product characteristics and creating an image to maximize sales.

Marketing Mix

The elements of the marketing mix include product, place, promotion and price. These elements help marketer to adjust segments or target markets around to maximize satisfaction of the customer and to create competitive advantage.

Product: The product is what a company offers in a form of tangible or intangible form. It is a solution for the customer problem.

Price: The price is cost of a customer that he pays to buy a product.

Place: The place is related to distribution and availability of a product.

Promotion: The promotion is a process that a company uses to communicate its offering.

1.2

Market Orientation - Marks & Spencer

Market Orientation

A market oriented firm believes that the customer is a heart of the business. All of the activities are focused around the customer. A market oriented company tries to achieve the goal to understand the needs and wants of the customer. To develop effective market orientation, a company has to carry out high marketing research, which requires strong market intelligence that has to be accurately responsive (Kokemuller, 2013). Technology plays a key role to maintaining database to collect and analyze customer data, and look for constant improvement in its products.

Marks & Spencer belongs to the product type. It is the leading clothing retailer in the United Kingdom. They are mainly involved in producing clothes and food items, although it has also expanded its business in different ranges such as technology, home wares and ...