Marketing is an
essential part of business that needs to be done suitably for ensuring
profitable results in business. It is important that business ventures need to
adopt different principles for marketing that are unique. This will help in
gaining competitive advantages in both international as well as local market.
Every business enterprise had to understand their position in market before
undertaking any ethics for businesses. Competition has to be suitably
maintained in order to for attaining success in business. For convincing
customers and creating brand awareness among them, companies need to develop
new processes of marketing. This will help in maintaining their position in
market. In this study, organisations like Vodafone UK and Starbucks are being
taken as an example for understanding processes of marketing. In what way,
marketing mix is being conducted for gaining advantages in competition are also
clearly depicted in following study.
In the opinion of Sheth and Sisodia (2015, p.45), the different tactics are applied for
marketing the product by the company. Starbuck is a famous Coffee maker whose
business factor is analysed as follows:
The first factor is to analyse the
situation of market. Here, situation refers to the perception of customer
toward the product. The Starbuck has analysed that the process of making
product should be present in front of public, so their belief about the
transparency of policy of the company become stronger. Therefore they
advertised about their manufacturing process on their website in a brief
manner.
As considered by Frederiksen et al.
(2013, p.17),
the loyalty of company should be known to people and the service they provide
should be customer oriented. The customer should not get the feeling that
company is trying to sell the product for their own profit. Thus, the
psychology of customer should be understood by the sales executive. There is
one point where a customer is compelled to think about purchasing the product.
Some element is mentioned in the
given context where a sales person can pressurize customer by telling the
deadline of the low price of a product and also mentioning the comfort of the
person has relation with customer. As considered by Armstrong et al. (2014, p.67), personal
needs of customer play an important role for the sales person when he is
selling the product, but he has to inter relate the benefit of product with
customer need.
In the opinion of Nowak et al. (2015,
p.2406), market research analysis is another important element for to give the
feedback of customer’s needs. Once the analysis of market has taken place, the
next thing comes in the picture is approach toward the undesired customer.
Nowadays, sales world has expanded its wing to everywhere that even people are
aware of the traditional way of selling. So, rather hard core selling of the
product, an executive should make good relationship with the customer for a
long run.
In the opinion of Walker
(2014, p.17), marketing orientation comprises of those strategies which would
lead to a good relationship with a customer and increase their profitability
margin. It becomes important for the organization to evaluate the cost and
benefit of a product. These two terms are interrelated to each other. As
considered by Cooke and Dayton (2015, p.132), the customer always
wants the best quality of the product so that his expenditure on a product will
be useful. In the mentioned context, the hard core selling for gaining the
profit and selling the car as per the comfort of a customer are explained
nicely. The theory is applicable for the organisation also.
In the opinion of Challagalla et al. (2014, p.15), there is two type of company who sell
the product for gaining the profit and selling the product for customer
satisfaction. Evaluation of cost includes cost of designing the product,
product quality, transportation charges and service tax etc. The customer will
appreciate company’s product if he is satisfied with its usage. Sometime
company increase the quality of product to reach the customer desire but it has
to increase the cost as well. Above context also explain that if the sales
executive is selling for gaining profit only and customer understand seller perception
then information about this strategy of a company will be distributed by the
customer to his relative and friend lead to the bad name of an
organisation.
Macro elements affecting decision of
marketing: Starbuck, which has started its journey from 1971, become able to
establish itself in the market of UK. The dynamic nature of market with
changing time has to be analysed with the help of market analyst. Starbuck has
started a program of getting reward points earn from expenditure by a customer
and from that points, he/she will get free drink and food. This methodology
will attract that customer who spends more money or they are very rich. The
market is flooded with people who earn average and spend limited. These people
become a macro factor that can influence Starbuck’s business. Technology
becomes one important element for the growth of an organisation. Starbuck
already has taken the help of social network i.e. Facebook, for declaring about
the points and reward. Therefore, by a social network, a company has increased
the consumption of its product.
In the opinion of Hastings and Domegan (2013, p.14), the geographical element of some
place is an important reason for the business of an organisation. The
organisation should aware of the fact whether its product has been used in the
rural area also. That would enhance the business with new experience of what
people of a rural area like in the product.
The age of people also affects the
business of the organisation because of their choices in the product. An old
person might not like much the hot coffee, because of health issue. It is a
responsibility of organisation to plan their services as per the age of people.
The employee, investor, and
shareholder of an organisation are the micro element which influences the
business of a company. An employee of a company sells the product, deal with
customer and handle the management team, so they influence the economic condition
of the organisation. The company has to hire a skilled worker, in case company
is dealing with high technical business, has to give high salary to their
employee.
The competitor company increases the
demand of customer about the product with its quality and benefit. Thus, the
satisfaction level of customer increases which put the organisation in
pressure.
In the opinion of McNeil et al. (2015, p.93), the
segmentation has a different form. Usually, a market can be segmented socio
economically, demographically, geographically and psycho graphically. The best
example is segmentation of Starbuck who analysed the market in a proper way.
The socio-economic segmentation is a division of market-based on the financial
status of people and their income. The business of Starbuck will grow if he
sells his product without confining itself, prosperous people. It should put
some small shop around the city so that average earning people can take their
services. In the opinion of Dubuisson (2013, p.685), demographic segmentation
is dividing the market based on gender, community. Therefore, when Starbuck is
expanding its business outside of UK then it has to understand the taste of
people of that particular community toward the product.
The psycho graphically division of
market is most important and complex element for an organisation to implement.
The company understands or analyse the thinking of people toward a product,
what kind of attitude they are possessing for the services of a company.
In order to accomplish the target, an
organisation is making some strategies for attracting its customer and
increases the consumption of its good and profitability. It has already
discussed earlier about the segmentation of Starbucks. This itself is a form of
strategy. Starbuck should start the Happy Hour scheme for its consumer and it
should be like that if some customer is taking coffee in between 4 pm to 6 pm
then he will get the 20 to 25 percent discount. This 20 to 25 discount will
vary with the last three-month relationship of a customer with Starbuck.
This has already mentioned that
segmenting the market is a form of strategy to attract the customer. Starbuck
should start their business all over the world without confining itself in the
barrier of border and community. Many Asian countries have good market for
coffee, so the company should invest in this market for expanding the business.
The company through website and social network inform its consumer and other
people about the new changes take place in their product.
In the opinion of Kim et al. (2014,
p.42), there are different kind of behavior a customer possesses toward the
organisation and its product. Consumer behavior affects the strategy of the
company and the quality of a product. As considered by Migliori
et al. (2014, p.91), consumer behavior varies as per his
lifestyle, geography and past experience with an organisation. The product
consumption increases, for example, the rate of Starbuck’s coffee decrease, the
people who urged to drink coffee in the past but not able to buy because of its
high cost, would suddenly go to consume the Starbuck product. Their behavior
would change suddenly because of a rate of coffee, motivate more people to
attach with an organisation and enhance their business. Past experience of a customer has the taste
of the services of organisation and updating themselves with information of a
company. These old customer sometime do investment with an organisation and
become the shareholder of a company.
The family of consumer and his
background influences the business of a company. A person would not entertain
the product if he has no knowledge about the product. Suppose Starbucks has a
business of coffee but it is unique from coffee normally made in a small shop,
so if a person is lacking in knowledge then he will compare Starbuck coffee with
street coffee and his approach will also be like that.
According to Johnston and Marshall (2016, p.669), Positioning of
products need to be done in such a way that it will help in gaining extra
benefits in business. Starbucks has launched new services of Happy Hours, where
people will get huge amount of discount if they visit outlets of Starbucks at a
particular time. Positioning of such services needs to be done suitably so that
people get attracted and come to enjoy those services. Target market has been
set for this service and it is positioned in every outlet of Starbucks in city.
As a result, when people will get to know about such service, they will be
eager to visit outlets of this company. Anderson et al. (2014, p.210)
commented that target market needs to access new product or service that are
initiated by any venture. Based on this, products or services are required to
be placed in market.
Young generation has been targeted for this service that is why;
positioning of such service is being done right in that time when youth can
access it. This will help in attaining extra advantages in business and
competitive advantages can be gained easily by this entity. Positioning
strategy is completely based upon demand and requirements of customers. This
company has considered these criteria so that satisfaction can be provided to
people in large amount. This will help in maximising profits of this company
and build a good reputation in front of customers. Moreover, proper positioning
will lead to gain loyalty of users towards this brand (Starbucks Coffee Company,
2017).
Being a marketing
manager of HSBC, it is significant that products of bank need to be developed
in such a way, that it would help in sustaining competition in market.
Different innovative and creative services, as well as wide range of products,
are required to be provided to people in order to gain their attention.
Financial products of HSBC includes home loans, insurance, net banking and ATM
facilities. These products have to be developed in such a way that people finds
interest in using these services. Munar et
al. (2014, p.386) mentioned that
product design has to be done in an attractive way for attracting customers
towards a particular venture. In products of HSBC, unlimited longevity is
provided so that attention of people can be sought successfully.
Moreover, needs of
customers, their demands and expectations are required to be understood so that
extra advantages can be gained in businesses. This bank can provide several
types of account facilities for people that would help to indulge more
customers under their services. It is important for every enterprise to improve
their products quality in accurate way so that competition can be maintained (Walker,
2014, p.6). This bank can provide variety of loans for house construction,
buying lands and apartments. In addition to this, it can provide business loans
for different business houses at easy installment scheme. As a result, it leads
to provide people with every modern banking facility that would ease work
process of people. In this way, if up gradation in services is done,
competition can be easily sustained in business sectors (Hsbc.co.uk, 2017).
As per Kaski et al. (2017, p.700), services and products is
required to be distributed evenly so that every person can be linked with those
services. This bank needs to distribute their products in almost every branch
of this bank. Moreover, new branches can be opened up that will assist people
to use these services properly. Moreover, net banking, as well as net banking
facilities, can be updated for placing such services for people. This bank can
concentrate large numbers of commercial people, who will deal with this bank in
large amounts. Therefore, profit, as well as competition, can be properly
sustained in market.
Financial institution is
a place that provides services by maintaining huge security and privacy (Kuvaas
et al. 2015, p.11440). This bank needs to develop
their security system and bring latest technology for securing accounts of
people. In this way, if service distribution is done, it will lead to bring
more satisfaction within customers. This will help in resolving any conflict in
mind of people regarding any service. Moreover, accessibility of such services
needs to be done at every point of city. If distribution is done over wider
area, massive numbers of customers can be brought into services of this
venture. Facilities need to be provided for each customer individually so that
full usages of such service are done thereby, maintaining huge competition in
market.
Figure 1: Marketing Mix
(Source: Kaski et al. 2017, p.700)
Toomey et al. (2017, p.270) opined that for holding strong
position in market, proper pricing strategy needs to be undertaken so that
advantage can be gained. HSBC bank holds huge share in market because it has
maintained reasonable pricing structure of their services and products in
market. It has to deal with every obstacle of market tactfully and sustain
inflation rate of market properly. While maintaining all these hurdles, this
company has to know in what way, price need to be set so that profit, as well
as competition, can be easily maintained. Huge control in market is set by this
entity and it follows every guideline of UK financial sector properly.
It has kept reasonable
rate of interest as well as provides different type of loans for people
including home loans, business loans and personal loans. In addition to this,
it has provided huge rate of interest for people, who are holder of life
insurance of HSBC. Repayment process of loans has been set at a particular
tenure so that people can easily repay their debt. Extra activity and function
like advance payment of loan and replacement of loan are not being charged from
people. This bank can develop their structure of price by adding premium deals
in their work structure. This means people can get some subsidies when they
repay their loan earlier. This will help in taking a big leap towards
maintaining good competition in market.
HSBC bank does not
provide any gap while promoting their products in market as well as in front of
people. Gallego et al. (2014, p.220) commented that promotion
activities need to be organised duly in order to encounter with more number of
people. Since this bank has branches in many places across globe, promotional
activities need to be effective so that it can be able to cover up such vast
area. This company maintains their own catalogue of service, which has been
designed in a creative way. Every person attached with this bank gets this
catalogue after ending of a fiscal year. It promotes their services using
commercials, messages and by delivering brochures to people, who visit branches
of this bank.
This bank can uptake
another innovative way of reaching people by placing different signboards in
every portion of city. This will help people to know about their new services
and find interest in those services. Moreover, it can display their terms and loan
services in LED screens in every branch. This will help in attracting customers
and place news regarding their services to existing customers also. Besides,
staffs of this bank need to develop their communication process correctly so
that they can influence users by their words. Moving service users towards a
particular service can be done by uttering such words that can motivate people
to use those services (Naim et al. 2015, p.5). This venture can uptake this
process of promoting so that people can be easily brought under their services.
In the opinion of Smith et al. (2014, p.2455), extended marketing mix in
another name of service marketing mix that includes another 3 P’s namely
People, Process and Physical Evidence.
People: People are important part of marketing mix because people are
that element, who defines every service (Smith et al. 2015, p.1175). In
this bank, people play a vital role because every service has been incorporated
in business only for people. Based on their expectations and demand, new and
creative services are implemented. This helps in conducting business in a
suitable manner thereby, uplifting this organisation into another level.
Process: As mentioned by Berk (2016, p.40), process can be stated as in
what way, services are provided to customers. Quick services are provided by
this financial corporation in order to maintain a good image in front of
people. However, quality of services needs to determine accurately so that
people cannot raise a complaint against them. This will lead to bring huge
importance to services that are provided for people.
Physical Evidence: Oude Mulders et al. (2016, p.450) claimed
that physical evidence helps in ascertaining whether tangible or intangible
services are provided to people. For creating satisfaction among users,
elements that are tangible need to be provided with services. Intangible services
are not seen but can be felt while using it. Similarly, this bank provides less
interest rate for different category of people so that every section of people
can use it suitably.
Figure 2: Extended Marketing Mix
(Source: Smith et al. 2015, p.1176)
(Refer to PPT)
Marketing mix for two
separate segments of customers in markets for Vodafone UK is shown properly (Vodafone.co.uk, 2017).
Segmentation of product
Product: Vodafone provides different types of products for customers in
market like unlimited data, messages and voice call services. Basic aim of
providing such products is enhancing satisfaction level of customers and
maintains good competition in market.
Tariffs rates are also reduced so that every people can incline towards
using services of this company.
Place: This Company has delivered services to different places in city
and also in suburbs. It has also tried to reach people in rural areas thereby,
providing them with quality services.
Promotion: Promotional activities of every company have to be very
captivating for attracting a large customer base (Damian et al. 2015, p.85). This
company uses every possible technique of promoting their products. In order to
gain trust of people, it advertises their products in local market as well as
international market.
Price: Price of products in Vodafone is set in such a way, that every
section of people in society can use it. Along with that, it has maintained
reasonable price rate for unlimited calling and data services. Moreover,
service quality did not degrade when cost rate was reduced by this venture.
Huge competition is maintained in market.
Service Segment
Physical Evidence: Vodafone UK has installed its cables all over
cities and has provided its services properly. It has opened up different
stores in cities as well as rural areas in order to provide quality services to
people.
Processes: Business processes of this entity are very smooth so that queries
of customers can be solved properly.
People: People are given huge importance in workplace of Vodafone.
Employees, who can deliver quality services to people, are recruited in
Vodafone. Satisfaction of customers is also guaranteed by providing them with
high-quality services.
(Refer to PPT)
Frauendorfer and Mast (2015,
p.220) claimed that business to business marketing is not similar as that of
business to customer marketing. In business to business marketing, transaction
occurs between two different business entities. Vodafone manages their business
to business transactions suitably so that strong result can be gained. Entities
that seek services from Vodafone are provided with high-quality service in
order to maintain proper terms and conditions of business. This company
provides service via wire line that is not limited within geographical
boundaries of a country. Wireless communication process of this venture is very
developed thereby, enhancing business to business marketing of this venture.
This bears requirements of internet of other enterprises and delivers them with
quality services. This adds great advantages to business of Vodafone. As opined
by Ruben (2015, p.110), in B2B transactions, potential quality services need to
be achieved in order to attain trust and loyalty of other brands. Vodafone
provides services at minimal cost and risk related to those services are very
less. This helps in operating properly in business arena and gaining notable
advantages in business units.
(Refer to PPT)
Domestic as well as international marketing are two different
segments of marketing where marketing norms differs a lot (Nowak et al. 2015, p.4204). There are many areas like possibility,
obstacles, earnings and expertise that differ a lot in case of marketing in
these two segments.
|
International
marketing
|
Domestic
Marketing
|
|
International market
provides Vodafone with immense opportunities to expand their business
successfully.
|
Chances of expansion in
domestic market are not as high as that of international market.
|
|
When ventures market their
products in global market, they have to face huge problem (Walker, 2014, p.6).
This venture too had to face different problem while conducting business in
this sector.
|
In national market, there is
no such barrier that business sectors have to face while executing their
business in this market.
|
|
Margin of profit is very
high in global market.
|
Margin of profit is not
high in domestic market and actual costs of products need to be kept
reasonable.
|
|
Use of modern technology
can be done in international market.
|
Local markets use traditional
technology in comparison to that of global marketing.
|
Table 1: Difference in
International as well as Domestic marketing
(Source:
Cooke and Dayton, 2015, p.132)
The study shows that in
what way, marketing principles can prove beneficial for any business house. It
is important for every individual sector to maintain suitable competition in
market. This adds glory to business enterprises and a huge recognition among
people. However, it is required that people had to be treated properly while
delivering services to them. This will lead to creating a brand awareness among
them, which can be considered as a competitive advantage for business sectors.
Different strategies need to be developed for better execution of businesses.
In order to attract customers, marketing strategies need to be very appealing
so that people can be involved under such services. Satisfying every individual
purchaser is aim and objective of every business. This will lead to maximise
profits of business and gain competitive advantage in business scenario.
However, objectives of companies need to be followed accordingly for enhancing
profit margin of every business firm.
