Different Types of Marketing Principles
Marketing principle can be refer to fundamental of promotion strategy and advertising so that awareness of company can be spread. Further, it helps in developing marketing tactics through which market segmentation and targeting can be done in desired manner. Beside this, company is also able to determine the effectual components of marketing mix so that overall sales volume can be increased. Through this, business enterprise is able to attain the business objectives and also gains high competency.
In this context, present report is prepared that aids in gaining deep insight of the marketing principles. For this purpose, Perfetto Juice Company is taken into account which is one of the prominent name in the field of fruit juice producing industry. In this report, discussions have been made on concepts of marketing, STP, marketing mix and related.
Marketing process can be refer to an approach of assessing the needs and wants of the customers and addressing the same so that overall efficiency of the company can be increased. In this, suggestions are taken from customers and same is analysed in order to develop required products and services. Considering this, following are the elements of marketing process that can be taken into account by Perfetto:
It is required to assess the external environment in order to identify the influence of political, economic, social and technological factors on the company. For this purpose, cited company can incorporate PESTLE analysis that certainly briefs about key external factors. Further, SWOT analysis can be incorporate to assess the capabilities of the organisation.
Once, environment is assessed then marketing strategy needs to be developed in order to identify the segment and target markets. In this regard, Perfetto need to conduct segmentation, targeting and positioning so that effectual advertising can be done.
This incorporates setting up the marketing mix that includes developing appropriate product, determining place of distribution, setting price and conducting promotion. With the help of it, company is able to attract the target customers.
Once the strategy and tactics are developed, it is required to monitor and control the same by the cited firm so that desired results can be attained through it. In this context, company can review the response rate of promotion and number of feedback for monitoring.
Marketing orientation can be referred to a practice of offering products and services as per the needs and wants of the customers. Considering the case of Perfetto, it practices this approach in order to meet with the varied needs and wants of the customers. From this, company is able to witness high amount of benefits in varied terms. Through this, cited company is able to boost its competitive advantage as there are no company that dealing in healthy and not-from-concentrate fruit juice. By fulfilling the actual need, company is able to grow from three to 350 employee and turnover of around £200 million. Another benefit of this practice is high customer satisfaction as company is able to offer juice with improved quality. Also, marketing orientation supported the organization in taking care of customers by receiving feedback and adopting change as per it. This further resulted into high customer loyalty and profitability which supported in company in expanding its operational base as well.
However, there are certain costs associated to marketing orientation that can affect the efficiency of the company. It needs to incur huge cost on gaining feedback from customer and analyse the same. Also, it consumes efforts of identifying what is the actual needs of the customers and ways in which same can be met. Beside this, time is also consumed in this and therefore it also aids in the cost. Considering this, it can be state that company gains more benefits than that of the cost associated to marketing orientation. Through this, company is able to boost its competency in short span of time.
Company has to assess its macro and micro environmental factors so that they can able to take corrective measures with regards to factor that affects its operation. Following are the factors micro environmental factors of Perfetto Juice:
Customers of juice processing company wants to taste new flavour overtime and it is very challenging task for the aforesaid company. In this, company meets this expectation up to ceria extent but it can develop new flavour by mixing two or more ingredients.
There are huge competitors in the beverage industry and the company has to face rivalry from it. There are two set of competitors i.e. direct and indirect. It needs to develop new products on regular basis in order to boost its competency and to develop distinct image.
Perfetto offers sound working environment and variety of motivational factors that essentially lead to job satisfaction. It offers fair remuneration and paid vacation to employees in order to boost its morale.
Company has to meet the legal standard of quality and hygiene in order to run it business successfully. Also, it has to meet the standard of health and safety at workplace to ensure healthy working environment. Further, usability in political setting affects the operation of the company.
Due to low economic growth and decline per capita income, cited firm is not able to gain full attention from its target market. This results into low increment in the sales volume globally. Also, change in exchange rate affects its profit margin slightly.
Further, company meets with the needs and wants of the customers of health and nutritional fruit juice. With this, company is able to attract more of customers on its side. It also focuses on taste of different customers and develops product accordingly.
The Company has incorporated latent technology in its operation from which it is able to meet with the global demand of juices with just 350 employees.
Mentioned Company is highly focused on the aspects of sustainability and for the same, it has incorporated varied efforts as well. It uses green electricity at fruit towers and also uses recyclable packaging.
It is required to determine the target market out of above determined target markets so that company can able to undertake appropriate steps. In this regard, company will majorly focuses on each of the age group that been developed above. However, only middle and high end class customers will be focused as they are the one that buys juices on regular basis. In addition to it, customers that lie in the quadrant of activities and attitudes under psychographic segment will be used as target market. This is so because these sets of customers will buy products on regular basis from which sales of cited products gets increased. In addition to it, company will develop sound marketing strategies so that they can be attracted towards it.
Buyer behaviour refers to a systematic process that been follow by customer at the time of making purchase of varied products. However, buyer behaviour varies from situation to situation. At the time of making online purchase, customer hesitate as he/she is not sure about the quality of the goods, return policy and no physical touch with sellers Due to this, he/she ask for advice to friends or family member who previously made online purchase. Further, is one is buying expensive goods such as car, flat, house, computers, mobile or other related then he asks to varied individual so that better option can be purchased. If one is buying for business purpose, then he/she will ask for quotation and discussion will be done to choose best alternative. Similarly, in the case of Perfetto juice, customers will buy product from word of mouth and TV advertisement. Therefore, it is required by Perfetto to focus on this aspects so that more of customer buys this product.
It is required that the firm must reposition its juices so that above stated target market can buy the same and hence sales volume gets increased. In this regard, juice will be positioned as healthy and nutritional drinks along with great taste so that each set of customers will buys the same. In this regard, advertising will be done which will depict that doctors are giving advice to drink Perfetto juice or smoothies for good health and disease free life. Also, it will reflect as drink that increases the immunity of individual irrespective of age group. Moreover, display at POP at chemist and convenient stores will help in boosting its sales. This practice is incorporated by Coke and same found effective in boosting its sale. Hence, these practice within the context of Perfetto will help in gaining high amount of attention from target markets.
Competitive advantage is something which given the company an edge over its competitors in terms of anything. Perfetto Juice has also developed some competitive advantages within its business. It has been done to see loyalty in the eyes of the customers. Following are the advantages company is having:
The amusing drink labels and packaging has become the most effective branding weapon for the company. The package designs are refreshed about every six months and the workforce shows great commitment in making the labels interesting and engaging for the customers. It is a great competitive advantage for the business because usually it is not practiced by other firms.
Perfetto donates 10% of profits to charity that is mainly to its foundation which supports charities functioning all across the world. It is a value for the needy ones. This kind of donation or charity increases the company’s reputation within the society which is very valuable for the products and services. Hence this act as a competitive advantage for the Perfetto.
Recession is a very difficult time period for every business industry. This is a time where company is required to show high level of concentration and focus. Under this situation the pricing of the products plays a crucial role. The prices are to be set according to the prevailing conditions within the market. Perfetto is following a policy of penetration pricing. Under this kind of pricing, company relatively sets low prices for its products in order to increase the market share and sales. It is following the approach of quality products at low prices. With such kind of price it will be able to attract large number of customers for a very long period of time. It will also contribute towards developing a loyal customer base. It is suggested that this strategy seems to be appropriate for the condition of recession. This is because at the time of recession, customers generally looks for low prices products at high quality.
Different types of promotional activities can be integrated by Perfetto to achieve its marketing objectives:
It is the most common form of promotion of products. The advertisements can be displayed on TV, newspapers, radio, hoardings, etc. These form of advertisements are very useful in attracting people in large numbers.
It is another method of promotion under which Perfetto can offer different types of schemes and offers along with the smoothies. For example discount or schemes like buy one get one can be offered for the masses.
It is the latest sensation within the industry. The gods are being promoted on different types of online platforms. For instance social media marketing is highly effective in promotion of products.
Following are the extended marketing mix elements which can be used by Perfetto:
It talks about the employees within the company. Marketing is incomplete without the efforts of manpower. These people are responsible for framing the business strategies which takes the business to higher level.
It is regarded as the method through which the goods are reached to the consumers. The operational procedure used are to be effective and result oriented. Efficiency should be reflected in all the processes so that goods can be marketed in better manner.
It is about price, packaging, labelling, size, shape and colour of the goods which are to be endorsed. People are highly influenced by the items which looks attractive and amazing in appearance. These things act as the motivational factors for the customers to buy the goods.
The marketing mix for the smoothies of Perfetto will be as follows:
The price for the product is kept very competitive on the basis of penetration pricing strategy. The smoothies is affordable by people of all income groups specially the middle income class people.
The creative packaging and amusing drink labels have become company’s main branding weapon. The designs are modified after every six months and efforts are made to make the labels interesting and engaging.
The products will be available at all the supermarkets, hypermarkets, departmental stores, convenience stores etc.
For the purpose of promotion, company has been selected as the official smoothie and juice provider for the 2012 Summer Olympic Games.
From the above study it can be concluded that marketing is a difficult process for an organization. It needs great level of concentration and focus. The marketers are required to design effective and innovative marketing approaches which can influence the minds of the customers.
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