Marketing Assignment | Marketing | Strategic Management

Introduction: In the highly volatile industry environment, where competition knows no bounds, Marketing remains central to the business

philosophy in order to gain a sustainable competitive advantage. Definitions and Main Concept: According to (Kotler, 1980), Marketing is the human activity directed at satisfying needs and wants through an exchange process. Here the concept of needs and wants is that for example a customer may need a car but more specifically his want may be BMW. Furthermore this definition of Kotler was further developed and was defined as µ¶ Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others¶¶ ( Kotler et al.., 1999). Marketing tends to satisfy the needs and wants and creates value through value proposition. According to Kotler and Keller (2006) µ¶ the shortest definition of marketing is meeting needs profitability¶¶ and coping with exchange process calls for a considerable amount of work and skill. Marketing management takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties. Marketing management is seen as the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. The other definition preferred is by CIM that is µ¶ Marketing is the management process responsible for identifying, anticipating and satisfying customer¶s requirements profitability¶¶ The above definitions lead us to determine the core concept of marketing process. The Exchange and Transaction is the core concept of marketing process. According to Kotler and Keller (2006), µ¶ A person can obtain a product in one of four ways. One can self-produce the product or ser-vice, as when one hunts, fishes, or gathers fruit. One can use force to get a product, as in a holdup or burglary. One can beg, as happens when a homeless person asks for food; or one can offer a product, a service, or money in exchange for something he or she desires. Exchange, which is the core concept of marketing, is the process of obtaining a desired product from someone by offering something in return. For exchange potential to exist, five conditions must be satisfied: 1. There are at least two parties. 2. Each party has something that might be of value to the other party. 3. Each party is capable of communication and delivery. 4. Each party is free to accept or reject the exchange offer. 5. Each party believes it is appropriate or desirable to deal with the other party. Whether exchange actually takes place depends on whether the two parties can agree on Terms that will leave them both better off (or at least not worse off) than before. Exchange is

A value-creating process because it normally leaves both parties better off. Core Concepts and Importance as a Process: A core integrated set of concepts creates foundation and a holistic marketing orientati n. o According to Kotler and Keller (2006), these concepts include; 1. Understanding the Needs, wants and demands Understanding customer needs and wants is not always simple. Some customers have needs of which they are not fully conscious, or they cannot articulate these needs, or they use words that require some interpretation. What does it mean when the customer asks for a "powerful" lawnmower, a "fast" lathe, an "attractive" bathing suit, or a "restful" hotel? Consider the customer who says he wants an "inexpensive car." The marketer must probe further. We can distinguish among five types of needs: a. Stated needs (the customer wants an inexpensive car). b. Real needs (the customer wants a car whose operating cost, not its initial price, is low). c. Unstated needs (the customer expects good service from the dealer). d. Delight needs (the customer would like the dealer to include an onboard navigation System). e. Secret needs (the customer wants to be seen by friends as a savvy consumer). Responding only to the stated need may short-change the customer. Many consumers do not know what they want in a product. Consumers did not know much about cellular phones when they were first introduced. Nokia and Ericsson fought to shape consumer perceptions of cellular phones. Consumers were in a learning mode and companies forged strategies to shape their wants. As stated by Carpenter, "Simply giving customers what they want isn't enough anymore²to gain an edge companies must help customers learn what they want." 2. Target Markets Positioning, and Segmentation Based on different needs the market is subdivided in to segments and products are positioned according to the segment requirement. 3. Offerings and Brands The companies address the needs by putting forth a value proposition, a set of benefits they offer to customers to satisfy their needs. The brand is an offering from known source all companies strive to build brand strength that is, a unique strong favourable image. 4. Value and Satisfaction Value reflects perceived tangible and intangible benefits and costs to customers. The offerings wills be successful if they deliver value and satisfaction to the targeted buyer.

5. Marketing Channels To reach the target market the marketers use three types of channels i.e. Communication channels, Distribution channels and Service channels. Marketers clearly face a design problem in choosing the best mix of communication, distribution and service channel for their offerings. 6. Supply Chain Whereas marketing channels connect the marketer to the target buyers, the supply chain describes a longer channel stretching from raw materials to component s to final products that are carried to final buyers. 7. Competition Competition includes all the actual and potential rival offerings and substitutes that a buyer might consider. Suppose an automobile company is planning to buy steel for its cars. There are several possible levels of competitors. 8. Marketing Environment Competition represents only one force in the environment in which the marketer operates. The marketing environment consists of the task environment and the broad environment. 9. Marketing Planning In practice, there is a logical process that marketing follows. The marketing planning process consists of analyzing marketing opportunities; selecting target markets; designing marketing strategies; developing marketing programs; and managing the marketing effort. The figure below presents the grand summery of the marketing process and the forces which shape the marketing strategy.

Figure 1.

(Source: Kotler, P. and Keller, K.L. (January 1, 2006). Marketing Management. 12th ed. Prentice Hall: Pearson Education LTD.) Marketing Process along with cost and benefits: The above mentioned figure1 describes the factors affecting the Marketing process which includes the environmental PESTAL factors these are the influences on which the firm has no control where as the SWOT analysis lets the firm understand its opportunities and threats and strengths and weakness which can be controlled and enhanced accordingly through control process which includes the marketing audit which analysis that the company is pursuing its best opportunities with respect to markets, Products and Channels. The integrated marketing organization looks at the high level control and integration over the major marketing functions along with its departmental cooperation in order to resolve internal issues and a well structured system that works on team principals. The marketing objectives aim to look and analysis if the marketing objectives are in line with the company¶s core objectives and the marketing objectives are appropriate given the competitive position of the company. The marketing mix includes the tactics and programs that support each marketing strategy. These programs should be specific and measurable, with a name, a responsible person, milestone dates, and a budget. The marketing process which creates value and satisfaction to the

customer creates loyalty and trust and thus contribute profitability to the business. On the other part the services, quality and customer care creates key value to customers in this intense competition. The Relationship marketing links the firm to the customers through creating relationship for example sending information about the new product or services to the customers. Customer retention is done through creating switching costs to the customer which means that customer in order to change the service or product will have to pay a higher amount of money. Higher the switching costs higher would be the customer retention. Total quality management is an organization wide approach to continuously improving the quality of all the organization's processes, products, and services. Macro Environment: The PESTEL frame work categorises environmental influences into six main types: political, economic, social, technological, environmental and legal. Thus PESTEL provides a comprehensive list of influences on the possible success or failure of possible strategies. These factors affect the Easy jet company for example the strict govt regulations may prevent easy jet¶s market growth. The economical factor may affect the profit margin when it comes about the fuel prices and the recession can decrease the customers. They may rather prefer to go for teleconferencing than to travel. The consumer is becoming more and more aware environmental factors which affect the environment. Easy Jet would need to ensure a strict compliance to the Environmental issues. Figure 2.

Source: Michael E. Porter. (2008). The Five Competitive Forces that Shape Strategy.

Micro Environment: Porter¶s five forces determine the Micro Environment of an industry and its impact on Easy Jet can be determined as the Air Line industry is highly competitive the power of suppliers like Boeing and Air Bus along with the power of buyer is medium along with power of new entrant remains low being the industry highly competitive along with the substitute remains at low level with high rivalry and competition. Buyer¶s Behaviour: The buyer power in accordance with the porter¶s five forces remains medium and the past recession has changed the buyer¶s behaviour towards low cost airline and Easy Jet due to its brand image and value proposition has gained buyer¶s trust which means enhanced profit margin. Segmentation Easy Jet has targeted low cost with no frills seeking customer market where most of the tickets are bought online and cost is cut down to increase profitability therefore Easy Jet is focused on cost leadership strategy through deciding a low cost with no frills seeking segment Figure 3.

The Extended Marketing Mix: Source (http://www.courseware.finntrack.eu/images/Marketing_Mix_Diagram__7Ps_L.jpg&imgrefurl=http://www.courseware.finntrack.eu/hnc_hnd/marketing.htm)

Product in relation to Easy Jet: Easy Jet is a low cost air line which provides services of carrying passengers from one destination to the other destination on a cheaper price but at the cost of no frills. The Services provided by Easy Jet include, Flights, Fast boarding, and other ancillary services. Place in relation to Easy Jet: The Easy jet sells its most of tickets through E-Ticketing system. Easy Jet due to its low fares is competing the low cost airline market and enhancing profitability through Cost cutting and one of cost cutting method is adopted by E-Ticketing. Price Facet of Easy Jet: Being no frills and low cost airline, Easy Jet stands as one of the low cost leaders in European Market. Different Promotional techniques by Easy Jet: From the Case study we know that being a successful low cost air line business Easy Jet offers a number of marketing offerings like customer services and safety , simple fare structure, strong brand image, strong corporate culture, Multi-Base Network, Car Rentals , Hotel accommodation and other ancillary marketing services. Consumer Markets Consumer markets are the markets for products and services bought by individuals for their own or family use. Goods bought in consumer markets can be categorised in several ways: ‡ Fast-moving consumer goods (³FMCG's´) these are high volume, low unit value, fast repurchase ± Examples include: Ready meals; Baked Beans; Newspapers ‡ Consumer durables ± These have low volume but high unit value. Consumer durables are often further divided into: ± White goods (e.g. fridge-freezers; cookers; dishwashers; microwaves) ± Brown goods (e.g. DVD players; games consoles; personal computers) Industrial Markets Industrial markets involve the sale of goods between businesses. These are goods that are not aimed directly at consumers. Industrial markets include ‡ Selling finished goods ± Examples include office furniture, computer systems

‡ Selling raw materials or components ± Examples include steel, coal, gas, timber ‡ Selling services to businesses ± Examples include waste disposal, security, accounting & legal services. Industrial markets often require a slightly different marketing strategy and mix. In particular, a business may have to focus on a relatively small number of potential buyers (e.g. the IT Director responsible for ordering computer equipment in a multinational group). Whereas consumer marketing tends to be aimed at the mass market (in some cases, many millions of potential customers), industrial marketing tends to be focused. (tutor2u.(2011). Types of market). The wake of globalization has brought in increased competition among the companies and Easy jet is also facing tough competition. Easy Jet is already present in Europe and is European Market leader at the moment. Its services and brand image has deep influence in the customers mind. Currently the short haul flights have been operated with no frills and low cost and no one has yet tried to go in the long haul market with this experience or in with same services in other geographical areas.

References: Kotler, P., Armstrong, G., Saunders, J. And Wong, V. (1999) Principles of Marketing, 2nd European ed., Prentice ±Hall. Kotler, P. and Keller, K.L. (January 1, 2006). Marketing Management. 12th ed. Prentice Hall: Pearson Education LTD. Michael E. Porter. (2008). the Five Competitive Forces that Shape Strategy. Available: http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/1. Last accessed 16th April 2011. tutor2u.(2011). Types of market. Available: http://tutor2u.net/business/marketing/market_types.asp. Last accessed 16th April 2011.

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