Marketing Principles And Practice
Strategies of Marketing Principles And Practice
Marketing principles and practices are related to those strategies which help to promote products in the market. The report is based on the pricing strategies of Tusting which luxurious English leather trade for five generations and they are now Britain's largest and most highly regarded luxury leather luggage and travel bags. The report explains the pricing strategies which are adopted by them. Apart from this, different marketing communication tools has been identified through which they can make communication with the audience. More than this, a detailed analysis of the social media marketing has been done to identify the role of social media in marking of the products.
As the company is operating in different countries that is the reason they uses different types of pricing strategies. This will help the organisation to get more profit from the market. Generally they uses the Premium pricing strategies. According to this strategy the prices of the product are set above the market rate. As they are the luxurious brand of UK so it will be possible for them to get more profit in the market. Basically it is the practice of keeping the prices high to encourage favorable perceptions among the buyers based solely on the price. This practice is intended to exploit the tendency for buyers to assume that the expensive items always enjoys an exceptional reputation. This strategy is sometimes also called the skim pricing as it is an attempt to skim the cream of the market. Tusting generally uses that to maximize their profits in the market where there are no substitute of the products or having less value than the other products. Other than this, the luxurious products are having the psychological association with adopting the premium pricing. The implication of the marketing is done because high profile people generally likes to buy the luxurious products that are having high price tag.
Tusting sometimes also follows the cost plus pricing which is the method of setting the prices of the products more than the actual cost. Through this, the organisation are quite capable of collecting much amount of money form the market to cover their cost. In this strategy Tusting includes the direct cost, indirect cost, material cost and overhead cost of a single ladies handbag and add a markup percentage to derive the prices of the products. This will not only help them to cover their cost but also it will help them to get profits in the market. Other than this, it will help sometimes also creates the situation of monopoly competition. Apart from that, through cost plus pricing Tusting is also able to get more profits on the single design of the product. They ca also use it for their other product to gain profit in market. Generally the markup is not so high so that it will be affordable by people to purchase it. In addition to this, buyers also thinks that cost plus pricing is the affordable approach to purchase the product easily. It will offer the competitive stability to the company if all the firms adopt cost plus pricing strategies. It will be generally used by the companies when they are having the much amount of cost on the products. As it will be easy for them to afford the cost of the product. Other than this, it will be also done for the intention of covering their cost on the products. As it is not so common technique in market to finalize the prices of the products but still it is much effective technique to cover the entire cost of the products without giving too much prices of the products. It is also said as the economic theory as it is possible for the company and customer both to afford the prices of products. It will also make the people attracted towards the quality of the products which leads to organisational profits of the company. As it is not involved in charging too much prices of the products it will also creates the good image of the product in mind of people which is great for the goodwill of the company.
On the other hand, in the local shops the prices are quite different than the malls. They are having a little low prices than the shopping malls as people of middle class are not able to afford such kind of prices. The pricing strategies which are analysed in research are quite similar to the strategies which are used by Tusting. It will help the company to get the goals according to their expectation through which they are able to get their objectives. Other than this, as the leather bags are in trend now-a- days so it will be quite beneficial for the organisation to make their prices more than other similar products. Apart from this, it is also concluded that the strategies which are used in the company are different form the other companies. More than this, the company will also able to make improvement in their products so it will creates the differentiation in their products in compare to other competition
The main difference in pricing of the local shops and mall is that people of high profile generally likes to buy from the malls. On the other people of middle class income are not able to afford the product having high prices. That is the main reason found in the difference of the prices of ships and malls.
The task is based on the HSBC bank plc which is the largest banking and financial services organisation in the word. It is also the international network comprised around 7500 offices in more than 80 countries. It task explains the marketing communication tools of HSBC through which they can sell their products to the customers. This will help them increase their business around the globe.
A range of marketing tools are used by HSBC through which they are able to make connections with the clients. They uses this tools to make the people attracted towards the services of the company. The use internet, social media and messages to make communication with the audience. Apart form that they also uses the advertisement on the newspaper so it will be convenient for the customer to know about the services offered by the company. As majority of people spend their time on social media so it is more beneficial for them to make advertisement about the services on the social media sites. Other than this, they also uses the local newspapers as the source of making communication with the people so that they will be able to aware about all the services of the company. Apart from this, use of internet will also help them to find about the requirements of the people so that it will be easy for them to develop the services accordingly.
More than all of this, HSBC also uses the personal mails to make communication with the people. They collects the information of their customers on their data base and make connection with theme at the time of development of the strategies. Through this, they are able to send personal mails to the customers which will make able to get knowledge about the latest products and services of the bank. They also uses to make advertisement in the templates through which they will be able to do marketing of their products and services in the market. It is also more convenient for the bank to reduce the efforts of the marketing in the market. More than this, they uses their official website to make advertisement of the products. The customers can directly go to the official website of the company to find the new and latest services of the company. Apart from all this,HSBC also uses the DRIP model to do marketing of their services. The DRIP model is used to make communication strategies for the organisation through which they will find the new and innovative ways to develop the communication techniques to the customers. DRIP stands for differentiate, reinforce, inform and persuade and can be an alternative to the AIDA model. AIDA model is also related to the making effective communication with the people to make them attracted towards the service of the company. Other than this, it will help the organisation to get more profit in the less period of time. It was created by Chris Fill and will be familiar to readers of his classic Marketing Communications text.
At the initial stage of DRIP is Differentiate in which HSBC has the scope to make their products differentiated from the other company. This will help them to make their products differentiated from other competitors. As services of DRIP is quite useful and affordable by the customers (Rana and Sharma, 2015). They can use this factor to get the customer attracted towards it. The another factor of DRIP is reinforce which explains that HSBC should reinforce the brand's messages and also consider consolidation and strengthen their features of the products so that it will be quite easy for them to make people aware about the services of the organisation. other than this, it will also help them to make better advertisement of their products. Through use of this, the company also will be able to find the strengths and weaknesses of their product so that it will be easy for them to make effective marketing of their products in the market. They can use their strengths to make people attracted towards the services. Through knowing this, HSBC can make better communication with the clients. They can also overcome from the weaknesses of the company so it will be more easy to make increment in features of their products. It will also allows the company to make connections with the number of people so that they can increase their communication network.
After that the next step is of inform which is related to make people aware about the brand of the company and its services. HSBC will be able to make explanation about the various features of their products so that the customer will be able to find the benefits of the products for himself. Other than this, it will also help the company to get best possible ways to make communication with people. They can make blogs, emails and phone calls to the different people so that they can make connection with them which is quite beneficial for the growth of the company. Different ways are there through which HSBC will be able to make connection with the people such as social media, internet, emails and personal messages to the existing customers. This will help to make theme inform about the new services. Other than this, the last factor is persuade which is related to encouraging people for making purchase of the product positively.
As HSBC uses the excellent communication techniques but still they require so new innovations in their marketing techniques so that they can make better communication with the people. They should use latest technology such as launching the new mobile application so that it will be more easy for them to make people aware about their latest services.
Social media plays an important role in the marking of the products online. Through this people will be able to find details about the product and services offered by the different companies. Other than this, it will also help the people to easily find the availability of the latest products and services through which it is possible to get more positive results for the companies. An analysis has been done based on the different magazines such as Marketing Week and Brand Republic. Through this, it can be found that how companies are using social media as their source of marketing. In addition to this, the recent trends of the marketing is also explained that help to make people aware about the new products.
As the social media is very important for making people attracted an aware about the latest products so the companies are using it for making their brands more powerful in public. Other than this, it is also very affordable by the companies to make advertisement in the social media sites. Many companies are there such as IT companies, retail and fashion, FMCG and fast food companies are there which are involved in doing marketing through social media. For example according to campaign live, IKEA which is the multinational company that works in the furniture retailing. they advertise all of their products in the social media sites so that it will be possible for them to make connections with the other people. Apart from that, it is also quite convenient for them to afford the expenses of the advertisement. More than this, as most of the people like to spend their time on the social media so that it will be easy for them to know about the latest products that are offered by the company.
According to the brand republic magazine, the start up businesses are also going to make advertisement through the social media such as VivaTEch. It is one of them who are doing advertisement in the social media sites and also they are getting the much positive results from that. Other than this,they make advertisement on social networks as people can find the services of the company more easily. Other than this, it is also found that the JCDecaux’s and L’Oréal’s Makeup Genius are also involving in making advertisement of the company in market. Through this, it will be easy for the company to make attention on requirement of the customer as they can give reviews about the products also. Apart from this companies other companies such as finance, technology, health, leisure and automobile organisations are also there which are involved in making advertisement of the services in the social media sites. Other than this, many startups are there which are involved in making advertisement on the social networks. Recently, John Lewis announces finalists for tech startups accelerator programme that is JLAB.
More than this, many fashion companies are also there which are involved in making advertisement of their brand on the social media sites. Many Retailers such as Asos, Topshop and River Island are there who are working on tapping into expertise of technology which will make them able to make people aware about their brands and products. The companies are moving towards the social media as this trends are make them able to do better communication with the people.
Various trends are there now-a-days which are making the companies attracted towards the using the social media. Certain things are explained as below:
It is best feature of social media that it is making availability of the facility to upload video content on the social sites so that it will be easy for the company it make people aware about the products and services. Other than this, it will be also more convenient for the company to find the various products. This trend of social media to make the easy availability of the product so that it will be convenient for the customer to directly purchase the products without going to the official sites of the company.
Other than advertising the social site also make availability of the online shopping to the customers. Through this,people directly will be able to order the products. Other than this, it will also help the company to get better opportunities to the company. Through this,they can get more profits.
Marketing automation refer to the software platform which is designed to help businesses market across multiple channels simultaneously. Local businesses are using the platform to keep up with the growing amount of content they will need to deliver to their customers and prospects. Various option are available for the businesses through which it is possible for the companies to get more profit. This is the major things which is responsible for making the products famous.
According to the aforementioned report, it can be concluded that, marketing principles help the company to make effective positioning of the products and services in the market. Apart from this, it can also be concluded that the Tusting is using different kind of pricing strategies through which it will be possible for them to get profit in the market. Other than this, they also will be able to cover up their entire manufacturing cost of the products. It will make people able to afford the products of the company. Apart from this, different marketing communication tools are there which help HSBC to develop contacts with the people. Through developing contacts with people make the company able to perform much better in the market. Thy uses social media, internet and other source through which it will be possible for them to cover the entire market operations. Furthermore, social media marketing tools are much useful for the business to make connections with the people.
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