In the modern era, marketing has become of one of the most crucial and important aspects for companies operating in any kind of marketing. Furthermore, marketing has also started to play a very vital role in enhancing the long term sales and profitability of a business enterprise. The key reason behind increasing use of marketing among organizations is that it helps in creating awareness among people regarding the products and services which has been offered by a particular firm (Kumar and et. al. 2011).
Apart from this, marketing also assist in communicating the fact that why services and products of a particular firm are better than those of other market players. The present research report reflects various elements of marketing process along the cost and benefit linked with the concept of being a marketing oriented firm. Other than this, difference between the concept of international marketing and domestic marketing is also mentioned in the present study. This report also includes explanation of how prices can be set to reflect the objective of a particular business enterprise.
(a) Various elements of marketing process and proposed segmentation criteria
The main objective of a business behind carrying out marketing of their products and services is to increase sales and profits by attracting more and more customers. However, it can be argued that carrying out marketing is not an easy task and it is required by organizations to take different elements of marketing process into consideration (Marketing Principles that will Never Change, 2015). The key elements which need to be taken care of by Quality Preserve Ltd. are mentioned below as:
Research of market- It can be defined as the first and foremost element of marketing process and it is also considered as very important one. In order to carry our effective marketing, it is required for companies to carry out appropriate research of the market in order to identify the changing need, demand, taste and preference of potential customers (Lilleker, 2013). On the basis of information gathered effective marketing plans can be developed to attract customers.
Defining target customer– Here, businesses are required to define their key customers whom they can target and attract in order to sell their products and services. Furthermore, defining right target customer helps in providing direction to companies regarding long term sales and profitability (Lusch and Vargo, 2014).
Choosing appropriate marketing mix– In this stage, firms are being required to define 4 major P’s of marketing which are product, price, place and promotion. These elements of marketing mix are being defined on the basis of information collected through market research and nature of target customers.
Implementation and control-It is the last element of marketing process, in which the developed marketing process is implemented in order to achieve desired results (Lichtenstein and Johansson, 2011). In this stage, corrective measures are also taken in case if expected outcomes are not attained.
In terms of proposed segmentation criteria which can be used by Quality Preserve Ltd. for their jams and preserved, it can be stated that demographic segmentation is more effective. The selected business enterprise can segment the entire population on the basis of demographic variable such as income level and can target people in middle income group.
Apart from this, the segmentation criteria that can be used for consumer market and caterer/hotelier market will be completely differs from each other (Pheng and Chuan, 2006). The reason behind this is the nature of two markets is entirely different and there is a huge variation in terms of quantity purchase in each market. in order to carry out targeting for consumer market, Quality Preserve Ltd. can make use of concentrated targeting strategy. As per this strategy, the selected business enterprise will be required to design and implement a promotion message that clearly communicates the benefits of using its products to specific people in middle income group.
(b) Marketing orientation benefits and cost
Marketing orientation can be termed as new concept of marketing in which companies make changes in their products and services on the basis of changing customer demand and need at regular intervals.
The concept is considered to be very beneficial as instead of focusing and offering same services and products, changes are carried out by businesses at frequent intervals. This helps in creating sense of satisfaction among customers and also very important role in attracting desired customers in long term. Another benefit to Quality Preserve Ltd. of being a market oriented company is that the selected business will be able to gain competitive advantage over other business in the market place (Naik, Raman. and Winer, 2005). This will directly results in enhancing the sales and profits of organization and will also assist in sustaining in the marketplace.
On the contrary of this, it can be argued that being a marketing oriented firm is a very complicated task for businesses as it is a very cost approach. The cost incurred in conducting market research and changes in products at regular intervals is very high and thus, operating cost directly gets enhanced. At the time of carrying out its marketing activities, Quality Preserve Ltd. will be also required to take care of the fact that the marketing practises followed are sustainable and ethical in nature. This will help in carrying out smooth flow of all operations and business practises (Lavie, 2006).
(c) Buyer behaviour in consumer market and caterer/hotelier market
It can be stated that different types of market has different types of buyer behaviour which needs to be taken care of by brand such as Quality Preserve Ltd. The rationale behind this is that behaviour of buyer in market influences the overall marketing activities of a business enterprise to a great extent. For example at the time of marketing its jams and preservers to consumer market, Quality Preserve Ltd. will need to take care of customer need and demand (Jobber and Ellis-Chadwick, 2012). Furthermore, the marketing activities will be carried out on the basis of those identified taste, need and demand.
On the other side of this, at the time of marketing its products to caterer/ hotelier market, the selected business enterprise will have to communicate the key benefit which those hotelier/caterers can have after purchasing the products from Quality Preserve Ltd. In terms of positioning itself in new corporate market, it can be stated that the brand will need to take care of its quality and price (Grünig and Morschett, 2012). This is because of the fact that here, price quality approach of positioning is the best and most effective one.
It can be also asserted that in order to establish itself in the new corporate market, Quality Preserve Ltd. will be required to invest wide range of resources and efforts (Lilleker, 2013). Here, marketing message should clearly communicate the profits and benefits which businesses in corporate market can have after buying the jams and preservers of Quality Preserve Ltd. For example at the time of carrying out marketing, it can offer heave discounts, flexible payment terms, special offers and opportunities to have higher profit margin over the above mentioned two products (Key elements of a successful marketing strategy, 2015). These marketing and positioning efforts are going to support Quality Preserve Ltd. in enhancing its sales and profit volume to a great extent.
(c) Macro and micro factors affecting business
In the modern era, there are wide ranges of macro and micro environmental factors which directly or indirectly affect the activities of a business enterprise (Nwankwo and Gbadamosi, 2010). Furthermore, in order to sustain in long run, it is required by business such as Quality Preserve Ltd. to take care of these factors. Some major factors along with their potential impact are mentioned below as:
Political factor – It can be stated that the business practises of Quality Preserve Ltd. are affected by the kind of political environment prevailing in the country. Instable environment affects the sales and operations whereas stable political environment in UK helps the business to carry out smooth flow of all its activities (Pomering, 2014). In situations of high tax rates, the company has to take decision such as lowering down its marketing activities to maintain the overall cost.
Economic factor – Quality Preserve Ltd’s marketing decisions are also affected by the economic condition in the nation. This can be justified by the fact that in situations of higher economic growth, the selected business enterprise can take decision regarding carrying out aggressive marketing to attract more and more customers (Lichtenstein and Johansson, 2011).
Social factors- It can be termed as one of the major and most important factor which has its influence of Quality Preserve Ltd. marketing decision. In order to sustain in market and attract desired number of customers, the selected company needs to make regular modifications in its marketing activities (Jobber and Ellis-Chadwick, 2012). For example if people are getting more influenced from internet and social media marketing then the business is required to implement the same.
Technology factors – High and upgraded technology in a country helps businesses such as Quality Preserve Ltd. to carry out desired marketing activities (Ivy, 2008). On the other side of this, low rate of technological advancements in a country force the firm to restrict its marketing practises to a certain extent.
Employee – It is the micro environmental factor which is present within the business enterprise. It can be stated that in situations where highly skilled and productive employees are present, Quality Preserve Ltd. can take decision to carry out marketing as per requirement and latest trends (Goi, 2009). On the other hand, if skilled workers are not present then the company may start facing challenges in conducting desired marketing activities of all its products.
(d) Product development to gain competitive advantage
In simpler terms, competitive advantage can be termed as situation in which people in the market prefer to buy products and services of a particular company over other brands available in the marketplace (Oly Ndubisi, 2007). Furthermore, such kind of situation is desired by every business enterprise as it directly contributes to long term sales and profitability. However, it can be critically argued that getting competitive advantage over other companies is not an easy task and organizations are required to put wide range of efforts and resources in order to achieve the same. In order to gain competitive advantage, Quality Preserve Ltd. can make use of process which starts with generating idea of developing a product which is innovative and unique in its own terms (Cousins, 2005). After this, screening of idea can be done in order to identify whether it is feasible or not.
On the basis of information gathered, process of product development can be started. Furthermore, a test product can be launched in the market with an objective to gain information about the fact that whether people in the market are accepting the product or not (Srinivasan and Hanssens, 2009). At last, Quality Preserve Ltd. can develop and launch its products in the market. Apart from this, competitive advantage can be also gained by conducting effective market research and competitor analysis. This will help identification of market gap by getting information about customer demand and what the key market players are offering. Quality Preserve Ltd. can develop products on the basis of market gap and can get competitive advantage over other companies which deals in jams and preservers.
(e) Carrying out distribution of products for customer convenience
Distribution can be termed as the process through which products and services developed are being supplied and provided to the ultimate consumer of the same. In the last few years, effective distribution has started to play very important role in acquiring higher degree of customer satisfaction (Nwankwo and Gbadamosi, 2010). This is because of the fact that delivering required product/ services on right time helps in developing sense of satisfaction among customers and also encourages people in the market to stay loyal towards a particular brand. Quality Preserve Ltd. is required to take care of customer convenience in order to sustain in the marketplace and for this purpose, it has to lay emphasis on its channels of distribution (Lavie, 2006). It can be stated that it is more beneficial for the brand to focus on direct channels instead of concentrating upon indirect channels for distribution of all its products. Here, both online and offline channels can be used by the selected business enterprise to take care of customer convenience.
The brand can developed its own website and make use of online platform to display and sell its jams and preservers. On the other side, own stores can be opened in different locations of UK so that customers and corporate clients do not face any kind of issue of difficulty in buying its products (Naik, Raman and Winer, 2005). It can be also stated that the use of both channels of product distribution is going to contribute in long term success and growth of Quality Preserve Ltd.
(f) Setting up prices to reflect organization’s objectives
Objectives are very important for a business enterprise as they provide appropriate and right direction towards growth and development. It can be stated that in order to achieve business objectives, it is required by companies to select and implement appropriate pricing strategy (Kuratko, 2013). For a company like Quality Preserve Ltd. business objective is to increase its sales by 10% every year and enhance its existing market share by 25% by the end of coming two years. For this purpose, the selected business enterprise can make use of low price strategy. This is the most appropriate and suitable strategy as per the nature of objectives developed by Quality Preserve Ltd. Low prices will help the selected business to attract more and more customers and create a sense of satisfaction among them.
Other than this, it will also assist in enhancing the existing market share (Grünig and Morschett, 2012). However, it can be critically argued that selling products such as jams, chutneys, preservers at low prices is not an easy task. It will be required by Quality Preserve Ltd. to always take care of its operational cost and try to maintain the same as low as it can be possible. Along with this, setting up low prices in order to achieve the above mentioned business objective will also encourage the selected organization to carry operate with a relatively low profit margin (Kumar and et.