Marketing essentials

Marketing essentials

The concepts of marketing

There are different market essentials which should actually have a greater knowledge on them for better marketing activities. One should understand them fully in order for him or her to carry out those marketing activities in a good defined manner and procedure (Groucutt & Hopkins, 2015 P.45).  These basic concepts of marketing include the following;

• Market segmentation
• Market differentiation
• Market targeting
• Marketing strategy
• 4Ps of marketing: price, product, promotion and people

Market segmentation and target market selection

• Market segmentation is the process of dividing a large market to segments that are homogeneous. O n the other hand a segment is of the total market consisting of those customers with the same tastes and references (Kotler & Armstrong, 2013 P.69-72). There are various variables that a company can use to segment its totals market. These variables may include the following;
• Geographic variable: This is where the company divides its total market of customers depending on the areas they come from. The company assumes that people from the same area tend to behave in a similar manner.
• Demographic variable: The Company divides its market share depending on the life cycle of customers. The life cycle may be based on issues such as gender, age and marital status.
• Psychographic variable: Here the company segments its market according to the behavior of the people. The market is divided based on the people with the same characters and behaviors.
• Geo-demographic variable: This variable states that those people who stay in the same estate, plot or even village tend to behave in a similar manner. This makes them a segment.
• Behavioral variable: Those people with similar behavior are termed as a separate segment.
• Target marketing is where the company selects the given segment and provides good quality goods to that segment. The following are the various approaches of targeting marketing;
• Undifferentiated marketing approach: The firm assumes that all customers in the market have similar preferences hence produce similar products to satisfy their wants.
• Differentiated marketing approach: Here the firm understands the difference among the customers and produces different products with different features to meet those needs.
• Concentrated marketing approach: It is where the firm selects one type of products and manufactures high quality products from such a single sector to meet the wants.
• Customized marketing approach: This is where the firm deals with a single customer. The individual customer becomes a segment.

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Current and future events

Marketing concepts are the strategies which a business should undertake in order to ensure that their goals are well achieved (Brassington & Pettitt, 2012 P.28). This should actually not be done through engaging in stiff competition but instead find good solutions to the problems.

There are various current marketing trends which include the following;

• There is greater customer engagement by the institutions through online advertising.
• The organizations are engaging on the advertisement which does not lead to annoyance to the customers.
• The organizations are not taking the media as marketing activity rather they take them as channels of marketing. This is to ensure that not all the resources are wasted on the media.
• The marketing institutions are making better efforts to retain their current customers by offering quality products and good services.

On the other hand the future marketing trends may include the following;

• Mobile phones will actually be used in marketing as by ordering goods.
• There will be a higher degree of transparency between the organizations and the customers.
• The need of more information on the goods will continue to move on.
• The social media will actually become an important platform for marketing of goods and services.
• The users and customer views and believes will be very useful in the marketing concept.

Marketing processes

Marketing process actually follows a defined process for implementation. The procedure to be undergone is as follows;

• Study of consumer behavior to enable market and segmentation
• Product planning to come up  with  good ideas of the product to be  put in place
• Making of pricing decision to get a good market share depending on the type of product and even  competition
• Distribution of the products from production channel to the targeted customers
• Promotion of the products through selling, sales promotion and advertising
• Consumer satisfaction as this is the major concern of marketing
• Conducting marketing control through auditing

Marketing structure and department roles

• Operation departments: (Brassington & Pettitt, 2012 P.39).This department is responsible for the smooth running of business.
• Research and development department: This department is responsible for determining the life cycle of the product.
• Human resource department: This is the department which deals with the issues of employees such as recruiting of employees.
• Marketing manager: The marketing manager caries out the roles of deciding the long term marketing strategies.
• Purchasing department: This department is responsible for procuring goods from the sources.

Marketing department: It is responsible for deciding revenue decisions to ensure proper business prosperity and profitability

Marketing as a profit making and consumer satisfaction

The concept of marketing always aims at satisfying the human wants at the same time recording profits but not loses. Marketing process actually follows a defined process for implementation. The procedure to be undergone is as follows;

• Study of consumer behavior to enable market and segmentation
• Product planning to come up  with  good ideas of the product to be  put in place
• Making of pricing decision to get a good market share depending on the type of product and even  competition
• Distribution of the products from production channel to the targeted customers
• Promotion of the products through selling, sales promotion and advertising
• Consumer satisfaction as this is the major concern of marketing
• Conducting marketing control through auditing

TASK 2A

Report on EE Limited application of marketing mix

Introduction

EE Limited is a mobile company in the United Kingdom. The company deals with manufacturing and selling of both phones and phone accessories. It is a big company but it has actually been passing greater challenges such as poor communication between the departments and poor market planning and orientation. This has led to it not carrying out its functions in the correct manner. The company is also facing a stiff competition from related companies. This is leading to it losing a great market share hence low sales. This competition should be taken seriously and dealt with immediately to ensure its success. This report aims at identifying the cause of these challenges and how they should be handled (Groucutt & Hopkins, 2015 P.86). The issues should be solved using the extended marketing mix techniques. This method will actually enhance its activities. The similar company which is posing great competition is the TEL limited. EE Limited should employ good marketing mix to cope with the competition. This will actually ensure that EE Limited acquires a good market share.

Marketing mix

This is the key areas and decisions that a manager has to focus in order to achieve the desired marketing objectives (Groucutt & Hopkins, 2015 P.45-46).These objectives include;

• Improving o sales.
• Provide high quality products to customers.
• Promote the company’s products.
• Ensure increase in the market share of the company’s product.
• To create a good image of the company to the society for better marketing of the products.
• To provide a larger variety of goods that satisfies the customer tastes and preferences.
• To attract new customers to buy the company’s products.

EE Limited should apply the best marketing mix techniques to achieve the following objectives. For instance it should try its best to increase on sales volume. The company should employ the following marketing mix techniques;

Price

Price is the exchange value of goods and service in the market place. This is a very essential element in marketing field to avoid loses or loss of market share. Under price, the EE Limited company may consider the following issues;

Price context

Price context may simply refer to what is contained in the price. It contain the cost of raw materials, the manufacturing cost , the profit which the organization target to get and another cost associated with the goods or service either direct or indirect(Brassington & Pettitt,2012  P.28).In order for the organization to achieve its objective it should ensure that all the listed cost are calculated and incorporated in the price.

Price strategies

When setting the price for goods and services, the company has various goals that it aims to achieve from price decision. In order to achieve these goals they should set their prices basing on the following strategies at the same time looking at the prices of TEL Limited.

(a)Demand oriented pricing strategy- this involves setting price of goods and services on the basis of the level of demand on the market. This strategy takes the following form;

-Place basis: This is where the price of goods and services vary from one place to another depending on the level of demand on the market. EE Limited should put lower prices of phones and accessories as compared to TEL Limited in areas of high demand.

-Time basis: This is where the organizations will set different prices at different times of the day, week, and month. Unlike TEL Limited who lowers prices during peak seasons EE Limited should raise prices during this times.

(b)Cost pricing strategy: Here the organizations set prices on the basis of cost incurred plus contribution margin.

(c)Competitive pricing strategy: This is where the organizations set their prices as their competitors. EE Limited should ensure that its prices are slightly lower.

(d)Odd psychological pricing strategy: Here the organization in order to achieve its objectives it will set its price to the level that the customers perceives it as cheap. For instance, setting price at $999.90 but not like $1000 like TEL Limited.

(e)Market penetration pricing strategy: Here the organization set it price at lower price to increase its market penetration rate in the market. EE Limited should ensure lower prices than TEL Limited prices.

(f) Multiple pricing strategy: Here is where the organizations group together different products and sell them at the same price. EE Limited should sell phones grouped with other accessories such as extra batteries.

Pricing tactics

Price tactic is a short term attempt to change the price of a product in order to attain a certain objective by an organization (Brassington & Pettitt, 2012 P.28). Examples of price tactics include the following:-

• Discounting: This is where the organizations offer discount in order to increase sales volume or to dispose slow moving goods.
• Lowering price: This is where the organizations lower their price with aim of increasing the volume of sales or to increase their market share or even to increase market penetration.
• Raising the price: This is where the organization increases it price in order to increase its profit.

EE Limited should at times offer discounts so as to prevent customers from shifting to TEL Limited and at the same time avoiding incurring losses.

Place

Organizations in order to make good decision they should consider where the customers prefer to purchase from or the quantity they prefer.

– Channel management: EE Limited ensure the channel within the distribution is well organized to ensure goods reach the customers at the right quality and right time(Brassington & Pettitt, 29-31). EE Limited should use better and faster methods than TEL Limited to satisfy customers.

-Supply chain management: For the organization to achieve their goal they should ensure good supply chain management. EE Limited should search quality supplies to produce high quality phones which are marketable.

-logistic: Logistic management is the part of supply chain management that plans, implement, and controls the flow of goods and services. EE Limited should hire more qualified logistic staff than TEL Limited.

Product

Product is either goods or service been offered in the market. In order for EE Limited to  get a large market share than TEL Limited it should ensure that it manufactures high quality mobile phones and at the same time offering high quality services to its customers such as after sales services(Jobber & Chadwick, 45). EE Limited should also try to engage in new activities which TEL Limited is not performing such as manufacturing new types of phones or modifying the current ones.

Promotion

Promotion refers to main tools used by marketers to communicate to their customers about the goods and services they offer to the market.

-Integrated communication mix: Integrated marketing mix ensures that all means of communications and messages are well linked together.  For the organizations to achieve their objectives they should ensure that all forms  of communication all well linked to each other to ensure proper follow of necessary information to ensure proper decision making as well as to facilitates quick decision making(Jobber & Chadwick, 2012 P.56). EE Limited should provide a well-organized message while advertising its goods and services. It should ensure that TEL Limited does not advertise more than it.

EE Limited can use the following advertising tools to achieve its objectives.

• Sales promotion: The objective of this tool is to induce immediate action.
• Advertising: EE Limited should use the appropriate advertising mean that will reach the target customer and the one which will cover the whole market and also the one which is cheaper compared to TEL Limited.
• Public relations and publicity: EE Limited should use this tool to improve its image than TEL Limited n the market.
• Personal selling: For EE Limited to be in a position to achieve its overall objection it should use personal selling if and if only its promotional activity objective is to create good relation and publicity.

People

EE Limited should actually ensure a very good relationship with its customers. This will in turn make the customers prefer them rather than TEL Limited.

Physical evidence

Here the organization has to check the features that the buyer need from the service. EE Limited should then ensure that it provides all the features which the customers require.

Process management

The organization has to use the correct procedure in providing the service to the buyer (Jobber & Chadwick, 2012 P.78). Customers always prefer well designed procedures hence EE Limited should adopt these procedures.

Recommendations

EE Limited will prosper in its activities and achieve its goals easily when it employs the following strategies;

• They should not set reasonable prices which are not too high to make customers shift nor too low to make the company incur losses.
• They should produce high quality product and render quality services.
• The company should engage in deep advertising to make customers aware of their products.
• The company should open branches in those areas with a high demand.
• It should ensure healthy relationship with the customers.

Conclusion

Conclusively, when the EE Limited Company employs the above strategies, it will improve in its activities. Due to this the company will acquire a greater market share compared to TEL Limited.

Task 2b

Marketing plan

Marketing planning is the process by which the organization prepares the document that outlines its advertising objective and marketing effort for the coming trading period.

Executive of EE Limited

EE Limited is big company hence it has got a large staff which sis it in carrying its activities in order to achieve its goals (Jobber & Chadwick, 2012 P.49-52). Its executive members are as follows;

• Marc Allera is the chief executive officer of the company. He is responsible for the overall running of the entire company activities.
• Stephen Harris is the head f the finance team. He is in charge of the financing strategies and decisions in the company.
• Fotis Karonis is the head of the mobile technology department. He controls all the activities concerned with the networking of the company.
• Sarah Jane she head of human resource management department. She deals with the issues and needs o employees in the company.
• Noel Hamill is responsible for consumer profit and loss for both home and mobile broadband.
• Max Taylor is in charge of transforming digital services in sales, marketing and servicing.
• Nick Lane leads the customer service team which deals with the interests of the customers to achieve the company goals.
• James Blendis is the head counsel and secretary to the company with the responsibility of regulating the ethical conducts in the company.
• Simon Framkin is the managing director of operations and strategy department. He deals with emergency services at the company.
• Ettienne Brandt is the managing director of channels and trading team. He deals with direct sales of the company.

EE Limited overview

The company was founded in the year 2010. It was formerly known as Everything Everywhere Limited then changed its name in 2013. EE Limited deals with mobile communications in the United States. Some of the services the company offers include voice services, messaging services and data services, fixed voice services, TV services and broadcast services(Jobber & Chadwick, 2012 P.66-69). It offers all these services through various telecommunication technologies. It actually offers quality services to its customers. It provides its services to both business and retail customers across a wide area. It mainly deals with such mobiles as EE, Orange and T-Mobile brands. The company also sells handsets and other accessories to its customers and offers services as repairs to the handsets s well as offering finance services.

Marketing situation analysis

Internal analysis

The EE limited has the ability to meet all its marketing objectives in a well manner. The internal structure and operations of the company are controlled by the top management to ensure efficiency. To meet demand changes the organization has the required human resources and business assets. This helps to accomplish the goals of the company in an   efficient manner (Kotler & Armstrong, 2013 P.57). The structural and cultural designs of the company suit every member. The company however lacks the training of employees which should be carried to enhance their skills.

External analysis

This is one of the organizations which are rated to have high competition ability in the current market due to its quality products and services. The changes in terms of economy in the world are actually posing many impacts to the organization. The company also faces some challenges resulting from the government rules and regulations towards business.  The company is also able to compete fairly due to its low prices of products and services(Kotler & Armstrong, 2013 P.66). It has also a great strength when it comes to adapting technology due its proper personnel on the technological department.

SWOT analysis

SWOT is an analytical method which is used to analyze internal strengths and weaknesses as well as external opportunities and threats in an organization. It gives information on the organizations recourses and competition capability hence very helpful in decision making and planning in the organization. Firstly this method involves identifying the organizations strengths as compared to its competitors. This may come from enough resources or even abilities of the organization (Kotler & Armstrong, 2013 P.60-62). These strengths are the ones that help the organization to perform better than others. Secondly, the organization has to determine its failure which is making it perform poorly as compared to its competitors for instance poor management. It should hence fix these weaknesses to avoid its failure. The organization should then determine the available opportunities in the market such as available market or raw materials. It should then use these chances to ensure success. Lastly, the organization has to identify any threats. These threats may be internal or external threats. It should hence deal with the threats to avoid business failure.

EE Limited has various strengths such as high rate of technology as compared to its competitors. This enables it to cope well with competition. The other strength is that of low price commodities and services. Some of the weaknesses which the company has are that of lack of training to its employees (Kotler & Armstrong, 2013 P.78). This should be fixed to improve performance. The company always determines available opportunities in the market such as advancement I technology and uses the chance. The management of the company is very keen in dealing with any threats   and disasters to avoid business failure.

Objectives of EE limited

EE limited is a mobile company in that has been able to succeed its operations when it comes to the networking programs and the marketing sector. This has been made real through the use of the leaders that are competent and always ready to make future objectives (Kotler & Armstrong, 2013 P.69-72). However, most of the companies usually make their future objectives but it is always not easy for them to achieve. Among the current future plans of the company that they are planning to fulfill in the short term bases are discussed below.

• The company is planning to make a 4G and voice data coverage of about 90% of the total geography of United Kingdom. This means that the number of people that will be connected at a particular time will increase and it will be easy for the company to bit the other companies operating in the same level in the mobile networking company. In addition to this, the company has been able to use better promotional campaigns to implement their objective of voice and 4G data divergence.
• EE limited is also planning to use the micro network technology to make calls in the an area covered by 1500 communities in the united kingdom which are neither connect to reliable mobile network currently or the high speed broadband. By taking this step, the company will be in the position to grab its competitor’s network at a very high rate and therefore expand its market and maintain top position in the networking technology.
• The company is planning to expand the voice coverage of more than 245000 roads miles away beginning with A roads, then B and the other feeder roads diverging from the main highways. This is one of the company’s 2017 resolutions.
• The company is planning to make a call completion of about 99.6% because its network carries about 150 miles away calls per day. Actually, this will be the climax of the company because few are the networking mobile companies that have been able to achieve it.
• EE limited company is having a long term planning in its research in the mobile and networking technology in which it aims at placing its name and generally the United Kingdom in the top list in offering network services. This resolution is currently underway and in the shortest time possible EE Company has announced to break light among the other companies in the field of networking.
• The company is planning to use 4g+ network in calls among the top cities of UK and also enhance very users capacity by doubling
• Increasing data speed to 60mbps to all Smartphone and tablets by installing a 4G among the UK populations in various areas.
• Lastly, the company is planning to install Wi-Fi calling to all androids, windows and Microsoft devices to UK population to increase the call time.

Strategy

It is basic for association to keep up the viability in business process to create and actualize the methodology to meet the business fruits. By considering the outer and inner elements that could have critical effect available, execution and brand estimation of association, administration of EE restricted can utilize the accompanying business sector passage technique to extend the market and clients base. Merger: According to market section system, the EE constrained administration could utilize the merger procedure for growing the market and client base in the recognized ranges. This sort of methodology will bolster association to let down the cost of building up the framework and choose the HR for playing out the operations as indicated by craved standard of value in items and administrations (Mcdonald & Wilson, 2011 P.267). Merger is process in which the two associations meet up to meet their goals by pooling the assets and arranging of the operations. For instance, EE restricted can play out the merger with the Vodafone to grow the market size and territories. This sort of market passage procedure would catch the zones where Vodafone is having solid appearance. This sort of system of promoting and building up the business will be useful for EE constrained as it won’t put any money related weight and extra hardware and buy of crude material as association can utilize the current framework of Vodafone.

Segmentation

Market segmentation is fundamentally the characterization of the purchaser advertise having existing and potential clients into little sections so that to focus on the real markets. These division is been completed on various bases having assorted qualities, for example, sex, inclinations, land, demographical, wage status, age, and so on. The division methodology in this way encourages the association to part the business exercises and get an adaptable and simple system to be accomplished by the administration or representatives (Mcdonald & Wilson, 2011 P.270-273). In setting to EE restricted, statistic advertise division would be valuable as would have the capacity to characterize the market on the premise of wage levels and offers the items and administrations likewise. The promoting specialists of EE constrained had sectioned the market in two essential classes, for example, higher pay levels and lower levels classes.

Tactics

For the execution of the best business system in the association needs to make the restorative move and that actualize it. The activity must be appended with the settled mission and vision that help the EE Limited to pick up the upper hand. The arranging of the strategies relies on upon the conduct of the representatives and working society of the work put. It helps the business to pick up the upper hand from the market and attempt to execute the right methodology for the business (Mcdonald & Wilson, 2011 P.346). The fundamental point of the association is to pick up the piece of the pie that necessities appropriate activity plan and actualize the specific strategies for the improvement of the association. The activities of the association depend on different purposes jump at the chance to diminish the extra cost, gain more income, business development and so forth.

Budget

The budget of EE limited is prepared to determine and pays for the expenses incurred in a particular trading period (Mcdonald & Wilson, 2011 P.440-443). The major activities in which the budgeting is conducted in this company are, marketing research, human resources, and trainings, marketing planning, and the use of technology and the implementation of strategy.

Control

The main strategies in control management department of EE limited is done through management effectively monitoring operations and secondly, use of control measures to ensure that its resources are being utilized efficiently (Mcdonald & Wilson, 2011 P.440-443).  In the monitoring of the market sector, the company appoints a group of professional to monitor the operations for diversified location. Significantly, the EE limited organizes trainings and development sessions among its staff members and later on collect feedback on the performance.

Conclusion

By use of the above processes in the plan of the EE Company, it will safeguard its good name and attain the top position if at all the resolutions are going to be attained.

Bibliography

Brassington, F. and Pettitt, S. Essentials of Marketing. 3rd Ed. Harlow: Pearson, 2012, Pg 28-105

Groucutt, J. and Hopkins, C. Marketing (Business Briefings). London: Palgrave Macmillan,          2015, Pg. 45-86

Jobber, D. and Chadwick, F. Principles and Practice of Marketing. 7th Ed. Maidenhead:   McGraw-Hill, 2012, Pg. 45-99

Kotler, P. and Armstrong, G. Principles of Marketing. London: Prentice Hall, 2013, Pg. 56-97

Mcdonald, M. and Wilson, H. Marketing Plans: How to Prepare Them, How to Use Them. 7th     Ed, 2011, Pg. 234-56