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Marketing Principles Environment Sample

Introduction of Market Principles

In current highly competitive market environment, marketing has become an essential requirement for very organization. Philip Kotler the marketing guru defined it as the set of human activities that are performed for consummating and facilitating exchanges. This present study will be based on J Sainsbury PLC (Saunders, 2013). It is one of leading retailers in UKand parent company of Sainsbury's Supermarkets Ltd. This was founded in 1869 but it started selling its own brand products in 1882. Company is holding 16.8% market share in UK and one of the market leaders. Before 1995 Sunbury's was holding top position in market but after that Tesco overtook in 1995 and then ASDA in 2003. Currently Sainsbury's is the third largest retail chain in UK with 1106 supermarkets and convenience stores (Kitchen, 2013). Presently company is having a huge workforce of more than 157,000 employees and generating the revenue of £22.294 billion.

Sainsbury's provide a wide range of products including food and drink, home and garden, appliances, technological, toys, gifts, baby products, entertainment, etc.Company also deals in property and banking sectors. Company is dedicated towards its customers and focused towards their satisfaction. It is listed on LSE and part of FTSE 100 Index (Saunders, 2013). Company is also focused towards its corporate social responsibility. It generated £10.5 million in 2013 for Comic Relief.

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Various elements of the marketing process 

Costs and benefits of marketing orientation for a selected organization

Marketing orientation is that belief of business which comprises of several perspectives such as decision making, cultural based behavior, market intelligence, customer orientation and strategic perspective. Here the actual concepts of marketing are implemented by the company and they also identify the needs, wants and desires of customers and on the basis of which they offer products and services to customers (Kotler and Armstrong, 2005). Sainsbury's offers several products and services in market but when they offer this products and services they pay more focus towards the quality and prices.Marketing orientation of company helps to know about the satisfaction of its customers that whether they are serving the needs of customers in efficient manner (Brown, 2003).


Macro and micro environment factors which influence marketing decisions

Macro and micro environment are those factors which influence the marketing decision of every company. Sainsbury's management takes the decision in accordance with these environmental factors as it affects the decision power of their marketing functions (Cheung and Prendergast, 2006). Marketing decision are always to be taken in consideration with environmental factors because it may bring any positive effects in the company's marketing decision or any negative effect which may affects the marketing strategies of the company (Layton, 2011).

Macro environmental factors which affect the marketing decision of Sainsbury's:

  • Environmental factors: In recent scenario customers are now more focused towards the environment as they want to save it from the issue which affects the nature also (Walsh, 2012). To take care of this issues company have to make their products which are environment friendly, recyclable, prohibition of carbon emissions and to save the fuel (Cheung and Prendergast, 2006).
  • Technological factors: Technological factors are one of the key macro environmental factors which influence the company marketing operations decision of company. As it competitors are offering their products and services through internet and mobile applications, they also have to offer this several services through this technological sources (Mohan and Krishnaswamy, 2006). If the company is using more advanced technology then they have also to bear higher costs for these services to satisfytheir customers.
  • Legal: Legal factors are those factors which are compulsory for the company to follow were they are operating its business. Rules and regulations related the legal laws of the company affects the business environment of the Sainsbury, as they have to obey the laws related to consumer rights, employment act, environment law etc. (Keegan and et. al., 2002) these legal requirements are necessary to follow if the company has to do business in market.
  • Political: Under political factors, government regulations and policies are considered that can affect the functioning of the company. For retail sector, it is very important for them to focus on government policies as it is the policies of the regulating bodies that determine what can be produced and in what quantity by the firms. Further, some changes in trade policies, employment policies, environmental law and tax rate can also influence the business of Sainsburry.
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Micro environmental factors which affect the marketing decision of Sainsbury's:

  • Substitutes of products and services: In the grocery market there are several substitutes of products and services which are available in market from the other companies (Wood, 2009). Sainsbury has to take that decision regarding their products which are unique and different from other substitutes in the market (Kitchen, 2013). Customers are more attracts towards those products or services which gives them better satisfaction in compare to its other substitutes.
  • Buyers: In market the bargaining power of the buyers are too high company has to take their decision according to its customers. If the customer have availability of differential products and services then they slightly shift towards those products which has standardize quality and available at lower price (Graham, 2008).
  • Suppliers: Suppliers also affects the marketing decision of the company as if there is any huge demand of the product in market then they may also charges high prices for them. Though due to availability of more number of suppliers in market reduces the prices of products and easily they are available in market (Layton, 2011).

Targeting strategy for selected product or service

When organization has segmented its customers then their next step is to target the customers of the market. Target is one of the first elements of the strategies of marketing where the first aim of the company is to manage its marketing efforts towards targeted customers (Kerrigan and Schaefer, 2007). Targeting helps the company to customize their promotional activitiesaccording to their targeted customers and then company focuses on consumers. Company has segmented its market according to its stores and outlets after that they had targeted their customers through buying behavior of the consumers (King, 2005).

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Products are developed to sustain competitive advantage

Competitive advantage means it is the capability to gain the attributes and resources in order to perform better than other companies in the same market or industry. To gain the competitive advantage a company may have several options to choose such as differentiation strategy, cost leadership strategy, innovation strategy and strategy regarding the operational effectiveness of the company (Layton, 2011). Competitive advantage is one of the premeditated benefits that the company has over its rivalries operating in the same industry or market.

Arrangement of distribution to meet the customer convenience requirements

In order to meet the needs of customers it is very important for the organization that they should consider their channel of distribution in such a way that it customers can easily buy them. The retail firm can place their products and services in such a way that its customers can conveniently buy them. Sainsbury's offers its products and services through both physical as well as through virtual stores which are plat formed on the website of company (Cooper, 2000). Its websites plays on innovative marketing strategy due to which their customers can easily access their online store and directly order the goods from anywhere. The company also offers several schemes, coupons and discounts to its customer on their website.

For achieving marketing objectives it is very necessary for Sainsbury to adopt those promotional activities which magnetize the customers to buy their products and services.

  • Advertising: Advertising is one of the most effective forms of communication in promotional activities, it used to persuade, encourage and manipulate the people to but their products and services.
  • Direct Marketing: Direct marketing involves sending of letters, e-mails, brochures, pamphlets, online display ads, catalogs etc to consumers. Sainsbury uses all this sources to attract their consumers towards their side and also use in-store promotional offers where brochures, pamphlets and catalogs are given to customers for the ongoing offers and schemes in their chain of superstores.
  • Public Relations: This element of promotion tool composed of promoting product or service via an informal sense; this helps the company to create a center of attention to new customers and also to toughen the loyalty for its existing customers. This is one of the powerful tools in business organization. Sainsbury's effectively use its corporate social responsibility via respect for environment, healthy food etc. this makes the good relations with the public in market.


Marketing Mixes for two different segments in market

Marketing mix works an effective tool in every function of the marketing as it helps to present their products and services in an effective way which helps the business operation of company to accomplish their goals (Wood, 2009). Sainsbury can segment its market in two different ways according to their products.

  1. Segmentation by Lifestyles: Sainsbury can target its customers on the basis of the lifestyle which specifies about the way the people like to live. The company can offers the products and services in two different forms that is premium level and normal level.
  2. Segmentation by occasion: Sainsbury can segment its market according to several occasions in the country as for Christmas, Easter, summer holidays, autumn inspirations, valentine day etc.
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Differences in marketing products and services to business rather than consumers


International marketing differs from domestic marketing

Domestic marketing or national marketing is restricted only up to the political frontiers of the country or we can say that its limit is within only up to the national boundaries of the country. The products and services which are offers by the company are only for the domestic market (Freytag and Munksgaard, 2011). The company has to frame its policies, strategies and functions only at national level which is the target market for that country. Manager of the company have to take decisions for that specific market only. 
Presently the company is operating at Domestic level only that is in UK only. In domestic market there is less competition in compare to companies operating at international level.

Sainsbury's has a several options to enter in the foreign market and have to select that option which will be beneficial for them

  • 100 percent ownership: In 100 percent ownership, company can directly invest in foreign market. Here the company can directly invest in the production unit of the company as through which they directly offers the products and services in foreign market.
  • Licensing: in Licensing the company has to take the license from the political authorities of that country who will permit them to operate in their country. In this case the firm gets the license from the foreign country and then they can operate easily in that company and develop its own strategies and marketing functions (Cook, 2007). One of the main drawbacks of licensing is that if the political authorities will not permit them then they cannot operate in that country.
  • Contract of manufacturing: in contract of manufacturing the company can contract with the domestic market of that foreign country and gives them permission to label their brand in those products which are manufacture by them (Kotler and Armstrong, 2005).
  • Joint venture: Joint venture is one of the most common strategies which can be adopted by the company by venturing through other companies. This also makes the company face less challenges and less risk because the risk and challenges will be share between more than one companies. If the company works on the joint venture basis then it becomes easy for them to operate at international level.


From the above study it has been concluded that marketing principles very effective role in the company, if the marketing principles are strategically design by the management of the company then it moves the company towards its success (Cook, 2007). Sainsbury's has effectively design its marketing strategies due to which it is one of the third largest chain of super market in all over UK. Every function of marketing plays an key role in business of the company as it attracts the customers towards their products and services to buy from their company only. As they know that company is satisfying their needs and desires in according to their demand.

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  • Barone, M.J. and DeCarlo, T.E., 2003. Emerging Forms of Competitive Advantage:  Implications for Agricultural Producers.” Midwest Agribusiness Trade Research and  Information Center Research Paper.
  • Brown, S.,2003. Post-modern Marketing. European Journal of Marketing, 15(7), pp. 78-80
  • Cheung, W. L. and Prendergast, G., 2006. Buyers' perceptions of pirated products in India. Marketing Intelligence & Planning. 24 (5).
  • Cook, G. R., 2007. Marketing to Leading Edge Baby Boomers: Perceptions, Principles, Practices, Predictions. Journal of Consumer Marketing. 24(7). pp.447 - 448.
  • Cooper, G. L., 2000. Strategic Marketing Planning for Radically New Products. Journal of Marketing, 64(1), pp.1-16.
  • Freytag, V. P. and Munksgaard, B. K., 2011. Complementor involvement in product development. Journal of Business & Industrial Marketing. 26(4). pp.286 - 298.
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