Marketing Mix In Different Contexts
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The principles of marketing gives an outline of marketing techniques, strategies and marketing mix (Cant, Strydom and Jooste, 2009). This present report attempts to understand the marketing mix of company. It also explains how organizations behave in their market environment and assesses the importance of international factors that are focused on shaping the national and international business activities of companies. This report also considers about the marketing practices of Sainsbury which is the third largest chain in supermarket and works in retail industry. It is headquartered in London, UK and employs over 157,000 employees across 1,106 locations.
Sainsbury is a public limited company and is focused on providing retail products through supermarket chains across the UK. Its vision is to become the most reliable and trusted retailer wherein people would love to shop and work. However, its mission is to become the first choice for consumers (Carter and et. al., 2013. main organizational objective of Sainsbury’ is to generate more revenue in order to increase shareholders’ wealth in the short and long-term. This retail company is dynamic and so it is focused to keep changes in its commercializing strategy that has successfully helped in enlarging supermarket chain in the UK and its business in Egypt. This enables Sainsbury to focus on food retailing and other related activities. Current Marketing Mix: Product, price, promotion and place is being improved to meet its new mission. Sainsbury make more focus upon the children and old age people for which the marketing mix are as follows:
Product: In order to become one of the largest supermarket chains in UK, company comes up with new and varied products. Sainsbury is committed to the consistent betterment and improvement in its product. Main thing on which supermarket works is related to the quality of products (Hellsten and Klefsjö, 2000). Consumers consider product for purchasing, when they believe that product’s quality is good.. For example, Food court plays a crucial part in maintaining quality and innovation in Sainsbury’s outlet in the respect of their products. Sainsbury have introduced ice -cream with more flavors as compared to their competitors. For such product Sainsbury specifically focus on the the children and old age people. As decision making of the customers is highly affected by the children and old age people. It is one of the main aspect due to which they have focus on this segment. For children: Sainsbury have offered ice-cream with the various kind of chocolate and creamy flavors. Whereas for old age people Sainsbury have introduced ice cream by taking into consideration all kind of fruits.
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Price: The most important component of marketing mix is price. In today's era, Sainsbury’s main objective is to be the first choice of food for the UK people. Company provides the best quality of food and excellent value for money. The pricing strategy for food covers both the segment of society including adults and youngsters (Bowman and Gatignon, 2010). For instance: Sainsbury have undertaken the competitive pricing strategy for the ice cream. For different flavors of ice-cream company charge prices in accordance with the competitors. Moreover, customer compares quality of the product with the price. Thus, it is the main cause due to which organization charges competitive prices for their product.
Promotion: Sainsbury undertakes several promotional strategies to promote the ice cream in UK market. In order to attract the children Sainsbury places animated advertisement on the cartoon channels and movies. In contrary to this, company can also make advertisement on newspaper to develop the awareness among the old people about the different flavors of ice cream which are offered by Sainsbury.(Dibb and Simkin, 2013).
Place: Sainsbury is the biggest food retail merchant in UK. It has 60 huge stores, 270 grocery stores, 117 city center stores and 21 locals. In order to meet the needs of large consumer base, forty three of its sales outlet trade full day and other bigger stores are opened at all-night long on Friday. Through this. Organization is able to serve the needs and wants of the customers in an effective manner.
There are significant differences while Sainsbury make marketing of product and services in B2B and B2C market which are enumerated below:
Driving forces: In case of B2B customer’s organization places more emphasis upon the detailed description of the product and services. In addition to this, organization also give more priority to efficiency aspect while they make efforts to persuade the B2B customers. Whereas in B2C choices of the customers are based upon the emotional aspect. Thus, by undertaking the emotional appeal in marketing campaign Sainsbury can attract the large number of the customers.
Price sensitivity: B2B customers are more sensitive in nature in realtion to the price factor. Moreover, marketer face difficulty in attracting the customers for thecosty products and services. Thus, Sainsbury make focus upon the price factor when they market the product or services to B2C customers. In contrary to this, B2C customers give more priority to the features of the product rather than the price factor. Usually, customers are ready to give high price for the innovative and quality product and services. Therefore, in the marketing campaign of B2C customers Sainsbury make focus upon the features and attributes of the product and services.
Buying cycle: Buying cycle of B2B is lengthier as compared to B2C customers. It is the main aspect due to which Sainsbury give more attention to the B2B customers. In addition to this, in the case of B2B customers, organization places more emphasis upon the building of the long term relationship. Whereas In B2c customers organization make efforts to satisfying the current needs of the customers. There are various type of consumers, so they can demand to serve products through using different distribution channels as per their convenience. But, in B2B, distribution channels are very limited as compare to B2C.
Business buyer of Sainsbury are so sophisticated and they understand properly about the products and services of company. (Bowman and Gatignon, 2010). In B2B, bulk of products are sold at the same time that leads business to gain more profitability. Whereas, B2C buyer looks for the best price and compares the prices of competition prior to shopping.
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International marketing significantly differs from the domestic marketing. Marketing strategies which are employed by Sainsbury in order to attract or influence consumer within the governmental boundaries of a country are known as Domestic marketing (Blythe, 2013). When, a company serves products only in local markets, even though it competes against the foreign companies that are operating within the country, it is said to be involved in domestic marketing. In domestic marketing, focus of companies is on the local customer and market only and no response is given to overseas markets. All the product and services are produced through keeping in the mind local customers only.
Whereas, when there is no boundary for a company and it targets to overseas customers or expands business in another country, it is said to be engaged in international marketing. If, Sainbury goes by the definition of marketing given above, the process becomes multinational in this case. As such, and in a simplified way, it is nothing but the application of marketing principles across countries. In America and Europe, many experts believe international marketing is similar to the exporting (Dibb and Simkin, 2013). According to another definition, international marketing refers to business activities that direct the flow of goods and services of a company to the consumers in more than one country for the profit purposes only.
Domestic marketing of Sainsbury depends upon production, promotion, distribution, and sale of goods as well as services in the local market while international market is the production, promotion, distribution, and sale of goods as well as services in the global market (Difference between International and Domestic Marketing, 2015). Domestic marketing is less risky and easier to conduct while international marketing is more risky and more complex. Domestic marketing requires lesser financial resources while international marketing requires huge financial resources. Domestic marketing deals with only a single market while international marketing deals with several different countries and markets. International marketing is more challenging and requires more commitment from the company because of the uncertainty and differences in laws and regulations in the global market while domestic marketing deals only with the laws and regulations of one country.
From this project report it has been concluded that effective marketing mix provides assistance to Sainsbury in achieving success in the strategic business arena. Company offers ice cream with the more different at the competitive prices. Through this, orfganization is able to attract the large number of customers. It can be seen in the report that there are huge differences in the marketing of the product and services to B2B and B2C. Thus, Sainsbury needs to consider such differences while planning the marketing campaign. Beside this, it can be inferred that international marketing highly differs from the domestic marketing.
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