Principles of Marketing Mid-Term

Submitted to: Dr. Sohail Kamran

Submitted by: Haiqa Malik

Registration: 2019-BBA-027

Class : BBA (A) - IV

Date of submission: 29-04-21

Question: 1
 a)
Business introduction:

The company that I am going to start is going to be that of an interior designer and the name
of the company will be “Décor Planet”. I will work with my clients to create aesthetic rooms
and spaces. The clients can range from homeowners to large corporations. I will consider it
my aim to make any space (provided to me) look very attractive yet functional through the
use of furniture placement, decorations and colour palettes.

Microenvironment:

The actors close to my company “ Décor planet” that will affect its ability to serve its customers will
include the company, suppliers, marketing intermediaries, customers, competitors and publics.my
company’s marketing management’s job is to build strong relationships with its customers by creating
value and satisfaction for them. For this job to be a success, marketing requires building relationships
with other company departments, suppliers, marketing intermediaries, customer markets and
competitors, which all combine to make up the company’s value delivering network.

1) Company:

As the manager of Décor Planet will work together with my team of different groups such as
conceptual development members, space planners, and site inspectors, programming researchers
and stakeholders and construction management members. I will make the decisions and I will
work closely with the managers of the different departments of my organization, for having a
better understanding of the customers’ needs and creating customer value.

2) Suppliers

Suppliers will provide Décor Planet products for designing and supplier problems can seriously
affect marketing so I will keep watch over the supply availability for products such as furniture,
decoration pieces, carpets etc. I will treat suppliers as partners in creating and delivering customer
value.

3) Marketing Intermediaries

Marketing intermediaries help the company promote, sell and distribute its products to the final
buyers. I will need resellers as that will help me to find customers, physical distribution firms for
distributing the furniture by picking them up from the origin and taking them to their destination.
Marketing service agencies, as they will advertise my skills to the target audience.

4) Competitors:
 The marketing concept states that for a company to be successful, it must provide greater
customer value and satisfaction that its competitors do. I will gain strategic advantage by
positioning their offerings against my competitor’s offerings.

5) Publics

Public is any group that has an actual or potential interest in or impact on an organization’s ability
to achieve its objective. Different public groups that affect my business include; financial public,
media public, internal public (internal works), general public and local public.

6) Customers

Customers are the most important actors in the Décor planet’s microenvironment. The aim of the
entire value delivery network is to engage target customers and create strong relationships with
them. I will target individual markets which will consist of individuals and households. Second I
will target business markets as different businesses as hire me to design their offices.

Macro environment:

The larger societal forces that affect the microenvironment- demographic, economic, technological,
political. Even the most dominant companies can be vulnerable to the often turbulent and changing
forces in the marketing market.

Demographic:

Demography will have an effect on “decor planet” as people belonging to different occupations
could require different kinds of decorations. Similarly different ages can also be a factor since for
younger children for example the interiors designing will be different than when we are decorating an
environment for office or households.

Economic environment:

The economy will play a huge role as customer’s purchasing power is very important, if the economy
is rich only then people will be able to hire an interior decorator to make their environment beautiful

Technological environment:

Technology will play a part as there is continuous innovation and new and more advanced products
are being launched into the market. So that will play an important role in decorating.

b)
Opportunities are favourable factors or trends in the external environment that the company
may be able to exploit to its advantage. The three most favourable opportunities that arise are
from the media public, customers and the technological environment

Yes I would tap all these as the customers are my clients and their satisfaction is very
important to achieve my goal. I will listen to their needs carefully and cater to their needs
accordingly. This will act as an opportunity for me as if I am able to satisfy my customers,
they will spread positive word of mouth to other potential customers. I can advertise my
business through different media sources such as newspapers, magazines and social media,
this will act as an opportunity for me. Technology will act as a favourable trend as because of
the new models of technologies that my company will offer, people will want to hire me to
upgrade their surroundings.

c)
Threats are unfavourable external factors or trends that may present challenges to
performance. The three most unfavourable threats that arise are competitors, economic
environment and public.

Competitors are a threat to my business as the competitor might be able to attract more
customers to itself, to tackle this problem I will provide greater customer value and
satisfaction than my competitors. I will come up with more innovative ideas to attract the
customers towards my company. The economic environment can be a threat for my business
as many low income households/businesses would not be able to afford my services. To
tackle this problem I can offer a special package to the low income group, so they can afford
my services within their means and are able to achieve a better surrounding environment for
their households/business. Company could act as a threat as if I don’t have a good
relationship with my employees that could become a problem for the décor planet as they
won’t be showing good results. To overcome this threat I will have a good relationship inside
my company to have a better impression of decor planet in the eyes of the public.
 Q2
Laptop computers:

The market for laptop computers will be segmented as follows.

Segmentation:

1) Demographic segmentation:

Demographically the laptop computers will be segmented according to age and income
level. In today’s world laptop computers are necessary to university as they need it to
make projects and assignments, office going people as they have to make presentations
and customer reports. In the current covid situation it is even important for young
children to have laptops for their education.it is segmented on the basis of income as
laptops are expensive and only people belonging to the middle and high class are able to
afford it

2) Psychographic:

It is segmented on the basis of people’s personality as people who are not extroverts and
people who like to stay indoors need laptops for entertainment purposes.

3) Behavioural :

It is segmented on the basis of occasions, as in today’s world people connect with family
members living abroad on occasions such as eid, birthdays, and weddings.

Target market selection:

I will be using the differentiated marketing strategy

Differentiated (Segmented) Marketing

It is a market-coverage strategy in which a firm targets several market segments and designs
separate offers for each. Its goal is to achieve higher sales and a stronger position. This
strategy is more expensive than undifferentiated marketing. It divides customers into specific
segments according to their common needs and desires. The product that I am selling is a
laptop computer and it targets people on the basis of age, occupation and income.

Biscuits:
 1) Demographically:

It is segmented on the basis of age that is for adults ranging from 20 and above. On income as
it will target people belonging to the low income group.

2) Psychographic:

It is segmented on the basis of people’s lifestyle as people. It will become a part of the
lifestyle of the people for people who enjoy biscuits with tea.

Target market selection:

I will be using the undifferentiated marketing strategy

Undifferentiated (mass) marketing

It is a market-coverage strategy in which a firm decides to ignore market segment differences

and goes after the whole market with one offer. The company designs a product and a
marketing program that will appeal to the largest number of buyers. Whether they are male,
female, children, low income or high income, the organization provides the same products for
all. Biscuits are something which are targeted to certain age groups but nonetheless they are
still enjoyed by people belonging to all ages. That is the reason why I have chosen
undifferentiated marking.