Professional Documents
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In this assessment you will have opportunities to provide evidence against the following criteria. Indicate the page
numbers where the evidence can be found for each criterion.
Criteria To achieve the criteria the evidence must show that the student Evidence
reference is able to: (Page no.)
P1 Explain the key roles and responsibilities of the marketing function. 9-10
M1 Analyse the roles and responsibilities of marketing in the context of the 10-14
marketing environment.
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I certify that the work submitted for this assignment is my own and research sources are fully
acknowledged.
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Qualification BTEC Higher National Diploma in Business
Level 05
Batch No 10
Table of Contents
1.0 Introduction.............................................................................................................5
1.1 Organizational Background................................................................................6
Monitoring performance..........................................................................................10
3.1 Microenvironment.............................................................................................11
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Suppliers..............................................................................................................11
Intermediaries......................................................................................................11
Competitors.........................................................................................................11
Public...................................................................................................................12
Customers...........................................................................................................12
3.2 Macro-Environment...........................................................................................12
Strategy...................................................................................................................16
Structure..................................................................................................................17
Staff.........................................................................................................................17
Systems..................................................................................................................18
Skills........................................................................................................................18
Style........................................................................................................................18
Shared values.........................................................................................................19
6.0 Conclusion............................................................................................................19
7.0 References...........................................................................................................19
Table of Tables
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Table of Figures
1.0 Introduction
Today, the way companies and other organizations connect with their customers has
changed due to the advent of digital marketing. With the increasingly growing
adoption of the internet by customers and business buyers alike, it is now a
requirement that all businesses have a strong online presence in order to thrive, if
not even survive (Chaffey and Chadwick, 2019). Digital marketing is significant
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today not only to reach many people easily, it is also more cost-effective, generates
a high return on investment and makes segmenting audiences simpler than ever
(Membrillo, 2020).
1.1 Organizational Background
Caravan Fresh is a chain of gourmet bakery and patisserie shops in Sri Lanka that
offers a wide range of cakes, bread, savouries, and cookies
for everyday indulgence, and celebration needs. Caravan Fresh, owned by
Masterbakery Lanka (Pvt) Ltd, caters to customers of all ages and demographics,
from over 20 retail outlets in Colombo, Sri Lanka (CrescentRating, 2021). The
bakery products are made fresh every day at the main factory in Hendala, Wattala
and distributed throughout the city to retail outlets and other businesses as
well. Caravan Fresh specializes in the customization of cakes for all events
and occasions at reasonable prices, according to specific customer
requirements. The staff is experienced and friendly, and they are dedicated to
ensuring that all customers have a pleasant, fulfilling experience through both the
food and their service (Samara, Google reviews, 2016). Moreover, product quality
and customer satisfaction are at the core of Caravan Fresh’s organizational goals.
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1.2 Evolution of Marketing Concepts
Robert Katai states (as cited in Wilson, 2020) that a marketing concept is a strategy
devised and implemented by businesses and marketing firms to meet the demands
of consumers, increase profits, and beat or outperform rivals. Over the decades, the
marketing concepts have been evolving, and the main five to date include the
production, product, selling, marketing and societal concepts.
Table 1 Evolution of Marketing Concepts: Author Developed (2021) based on sources
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This concept evolved on the belief Apple products are
that consumers would choose recognized for their
products with higher quality, extensive, high-quality
performance, and features over product designs and,
normal products. Therefore, although other products
businesses that adhere to the perform many of the
PRODUCT
product philosophy focus on their same functions at a lower
CONCEPT
technology in order to offer price, many people do not
revolutionary products with superior compromise only to save
functionality for maximum customer money- in fact, its target
satisfaction (Bhasin, 2018) audience always looks
forward to the company’s
new launches (Wilson,
2020)
MARKETING
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This concept uses marketing data Pepsi and Coke, for
to concentrate on consumer needs example, offer identical
and wants to create marketing products, but their value
campaigns that not only meet propositions are vastly
customer needs but also help the different. Unlike Pepsi,
company achieve its which focuses on younger
objectives. It relies on market people, Coke takes a
research to satisfy customers by more holistic strategy to
providing value to them. The three win overall. Both
main components of this principle businesses use this
are customer orientation, orientation to attract
CONCEPT
integration of the organization's specific audiences and to
operations, and achievement of the integrate their products
organization’s long-term goals into other types of
(Gitman et al., 2018). entertainment, such as
The difference between selling and sports and music (Hatch,
marketing concepts, according to 2020)
Harvard's Theodore Levitt (1960),
is that selling focuses on the needs
of the seller, while marketing
focuses on the needs of the buyer.
SOCIETAL
CONCEPT Today, green options are high in The body shop promises
demand, and consumers are even a big push for green
willing to pay a premium price for energy with electric cars
them (Charter & Polonsky, 1999). and solar roof panels,
The societal concept was evolved emphasizing their
to importance for corporate
identify target markets' needs, social responsibility and
wants, and preferences, provide sustainability (Tesla,
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the desired satisfaction more 2021).
effectively and efficiently than
competitors, while at the same time
preserving or improving the
consumer's and society's well-
being (Bhasin, 2020).
This entails determining who the business is, what it stands for, what it says about
itself, what it does, and how it operates. As a result, the experience a business
wants its customers and partners to have when they engage with it is defined
through brand management (The Hartford, 2021). It is the marketing department's
role to circulate ideas, photographs and messages that successfully convey the
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brand’s values and verify that these messages are conveyed coherently and
cohesively across all units of the organization (Verdoy, 2013). For example, as
claimed by Kotler and Armstrong (2012), Caravan Fresh identifies a unique selling
proposition of customizing cakes of all types and designs for any occasions within a
short amount of time and markets this across all mediums and to all stakeholders in
order to gain a competitive advantage in the bakery industry.
The marketing function must establish a channel of efficient communication with all
other departments within an organization to communicate goals, principles, and
objectives (Luenendonk, 2019). This is significant because good internal
communication allows workers to form strong emotional attachments to the goods
and services the company provides, as well as feel united by a shared sense of
mission and identity (Mitchell, 2002). For example, Caravan Fresh connects with its
employees through seminars, training sessions, and talks or demonstrations on
customer service and brand awareness (Information from the manager, 2021).
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According to Kotler and Drucker (2018), the marketing environment of an
organization is composed of outside business agents and forces that influence the
ability of marketing management to establish and maintain effective relationships
with potential customers. The roles and responsibilities of the external marketing
environment can be shown as follows:
MARKETING ENVIRONMENT
MACRO-ENVIRONMENT
MICROENVIRONMENT
Suppliers Political
Intermediaries Economic
Competitors Social
Public Technological
Customers Environmental
Legal
Figure 1 Marketing Environment- Author developed (2021) based on source Kotler and Armstrong (2018)
3.1 Microenvironment
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could be disadvantageous for the business since having long-distance suppliers
reduces the flexibility of obtaining the materials (Colombo Times, 2020)
3.1.2 Intermediaries
These are middlemen (wholesalers, dealers, and agents), financial institutions and
agencies for marketing services that assist in delivering goods to the final consumer
(Chand, 2021). To build a successful distribution system, marketers must think of
these agents as partners rather than mere delivery agents (Kotler and Drucker,
2018). For example, if the delivery agents of Caravan Fresh fail to deliver products
from the factory to retail outlets on time, consumers can become dissatisfied due to
the lack of goods and could seek out competitors instead. Therefore, the marketing
department maintains a consistent relationship with them (Fernando, 2021).
3.1.3 Competitors
Competitors are rivals who offer the same or similar goods and services as an
organization. A marketer must not only keep track of what competitors are doing in
the external marketing environment today, but also predict their likely response to
the organization’s promotions, determine how their price and product differentiation
affects the company, and forecast what competitors will do tomorrow (Studiowide,
2021). For instance, as claimed by Smith et al. (2005), Caravan Fresh studies its
competitors such as Perera & Sons and The Fab often
and attempts to identify the unique selling point of customization at affordable
rates, which would assist them in providing a higher customer value and satisfaction
than competitors, and in return, enable them to dominate the bakery industry in Sri
Lanka. However, unlike its competitor Perera & Sons, Caravan Fresh has not
implemented any corporate social responsibility (CSR) activities to boost its market
profile, and this could be a negative impact on Caravan Fresh.
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3.1.4 Public
The public who are interested in the business and has an impact on the business
come under this category, and they include financial publics, local publics, media
publics, general publics, internal publics, citizen-action publics and government
publics. An organization has a responsibility to please the general public, and
maintaining a positive relationship with them can help build public trust and obtain a
favourable response (Chand, 2021). For instance, Caravan Fresh ensures the public
are satisfied by ensuring the health standards are followed consistently (Avaana,
n.d).
3.1.5 Customers
The forces not close to the organization that affect its ability to serve its customers is
the macro-environment (Kotler, Brown, Adam and Armstrong, 2004). Before an
organization decides to transform its business incorporating digital marketing as a
business function, it must first analyze and assess the macro environment
surrounding digital marketing.
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Table 2 Macro Environment: Author Developed (2021) based on sources
EXTERNAL
EXAMPLES
FORCES
Social Forces
According to DataReportal (2021), the total number of active
social media users in Sri Lanka is 7.9 million and this number
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increases annually by 23.4% (+1.4 million people), indicating
that the society is becoming more accepting towards
technology. Moreover, Sri Lanka is a multicultural and multi-
religious country; thus, there are many celebrations and
festivals throughout the year (Cultural Atlas, 2021). This could
be advantageous for Caravan Fresh to market their celebratory
cakes for all seasons.
Environmental
Forces Digital marketing has a positive impact on the environment
compared to traditional advertising due to the
paperless, digitized aspect. Further, any positive environmental
changes a business makes can uplift its social profile and
make it more attractive to eco-minded customers. Consumers
want higher-quality goods at a lower price, but not at the
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expense of their quality of life, thus Caravan Fresh should be
mindful of all eco-logical aspects (Jaideep, 2021). For instance,
Caravan Fresh uses paper bags for baked items which is a
positive impact, however it should also reduce the use of plastic
bags for large cakes.
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4.1 Marketing and Production Department
The number and type of goods that can be sold are determined by production
capabilities. The marketing department forecasts product demand through market
research, as well as time and space delivery, while the production unit works to
produce high-quality goods (Micu et al., 2012). Hence, marketing and production
departments must coexist in a company. For instance, according to Keevers (1994),
the marketing unit of Caravan Fresh communicates with the operations department
to increase the production of celebratory cakes during seasonal weeks and the
operations department works within the timeframe to meet this demand.
There may be instances, however, when the two departments will collide. The
marketing department could set a timeline that is beyond the production’s
capability. Marketers would prefer goods to be released as soon as possible in order
to gain a competitive advantage, while producers would prefer to properly test and
assemble products in order to comply with health and safety regulations (Swaim,
2013). When issues such as this arise, both departments ought to work together to
find a far middle ground, such as outsourcing production or prioritizing
loyal customers.
4.2 Marketing and Finance Department
The marketing department will need to work attentively with the finance department
to ensure adequate budgeting is in place to meet the marketing needs. The finance
department communicates with the marketing department about its allocated budget
and ensures that marketing operates within this budget (Shinde, 2018). However, in
most businesses, these departments often clash due to differences in goals. The
finance department will expect other departments to operate within their allocated
budget, while marketing will wish to overspend if lucrative marketing opportunities
arise. The marketing department is likely to be focused on increasing sales volume
and market share, while the finance department is likely to be more concerned with
cash flow, covering expenses, and rapidly recouping expenditure (Swaim, 2013). To
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resolve this issue, both departments must constructively understand and evaluate
the options. The finance unit ought to view the marketing decisions as investment
decisions while marketing should strive only to request additional finance if they are
certain the marketing idea is lucrative and profitable. For instance, the marketing and
finance departments of Caravan Fresh maintain consistent communication to
ensure that the goals of both departments align (Keevers, 1994)
4.3 Marketing and Human Resource Department
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from rivals and meet customers' needs and generate customer value. Thus,
marketing and R&D should have a strong interrelationship. For instance, the
marketing department of Caravan Fresh communicates to the R&D department in
the main factory about consumer taste and preferences for healthy, organic food.
The R&D uses this knowledge to develop new types of healthy baked goods as well
as innovative solutions to preserve them (Fernando, 2021).
When considering digital transformation for Caravan Fresh, the McKinsey 7-S model
should be used effectively.
5.1 Strategy
Caravan Fresh can adopt the strategy of creating websites, adopting e-mail
marketing and opening social media accounts on different platforms that would
enable them to communicate with customers, take orders online as well as build
brand awareness. When creating the website, aspects such as SEO (Search Engine
Optimization) and SEM (Search Engine Marketing) should be taken into
consideration in order to provide good, relevant content to customers (Clarke, 2019).
Caravan Fresh currently operates through UberEats and PickMe Food; however,
they can expand their base if they undertake orders via the website with options for
customers to design the cake by themselves before placing the order.
Further, Caravan Fresh should choose the social media platforms that are currently
in trend. In Sri Lanka, 7 million people use Facebook and 1.3 million use Instagram;
hence, Caravan Fresh should primarily focus on marketing on these platforms
(DataReportal, 2021). Using high-quality images, relevant keywords or hashtags and
including creative competitions to engage users such as online quizzes and
giveaways will attract more potential customers as well as retain them (Taylor,
2019). Although gaining followers on social media will require time and effort, which
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would decrease employee motivation, Caravan Fresh can resolve this issue by
inculcating patience and focusing on the long-term effects rather than the short-term.
Caravan Fresh can also, according to Brynjolfsson and McAfee (2014), reduce the
cost of acquiring technology by using cheaper hardware and virtualizing databases
on cloud and provide consulting services to customers in real-time through the
website. Moreover, Caravan Fresh can employ the strategy of giving special
discounts to customers on their birthdays or anniversaries and market this on their
social media as this would encourage customers to purchase cakes from Caravan
Fresh for their special occasions.
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5.2 Structure
5.3 Staff
Caravan Fresh could employ a team of people specialized in digital marketing or hire
a single digital marketing strategist capable of guiding others. It could also hire a
graphic designer to create visually appealing content, web designer to create an
effective website, and a customer support team to handle online queries. Further, it
could dismiss employees who are not familiar with digital marketing. Although this
could harm employee morale—especially for those who have been with the
company for a long time—and, as a result, affect the company's image—Caravan
Fresh could resolve this by explaining the situation compassionately, giving workers
a time limit to learn the digital aspects and then dismiss them if they show no
improvements (Grote, 2016).
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5.4 Systems
Caravan Fresh can ensure, according to Teo (2005), that efficient systems such as
automated messaging and content management systems (CMS) to update website
are in place to carry out digital marketing smoothly and conveniently. Since daily
activities will be digitized, according to Nicholson (2017), it should be made sure that
appropriate devices, high-speed internet connection and safety systems against
cyber threats or viruses are made available. Further, internet and account access
should be given to the customer support team and marketers to promote the
organization. To facilitate online transactions for customers, safe and secure
payment processors should be determined and installed (Wong, 2021). The
marketing department and IT department will need to cooperate since an issue
between the two may disrupt the systems and, as a result, negatively affect the
activities of digital marketing.
5.5 Skills
Training and workshops could be provided to the staff to enhance their skills on
digital marketing and consistent methods to evaluate their progress may be
implemented (Parsons, 1996). Caravan Fresh can also outsource the work to
prominent figures skilled in digital marketing. The marketing manager could also be
given the opportunity to attend seminars or courses on digital marketing. These
could, however, increase the expenses for Caravan Fresh and in turn decrease
profits (Kum, 2014). Nevertheless, Caravan Fresh could consider it an investment
and focus on the long-term benefits that can be reaped. Furthermore, when hiring
new workers to the organization, Caravan Fresh could make knowledge and skills
on digital marketing a necessary requirement.
5.6 Style
According to Aon’s digital readiness model (2020), Caravan Fresh should oblige with
the need for a different type of leader. The leadership style previously followed can
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change from autocratic to democratic, since implementing digital marketing would
need the combined efforts and suggestions of the employees as well. For instance,
the digital marketing strategist can obtain ideas from his team regarding the content
for social media posts and then implement those ideas after careful consideration.
However, a change in the style could negatively affect Caravan Fresh since
employees would need to adapt to new methods and may be dissatisfied with the
change. Nevertheless, effective communication could resolve this issue, although it
would require time. According to Rassool and Dissanayake (2019), digital
transformation will only be effective if it is based on a behavioural shift, and teams
can only accept change if they understand why it is necessary and have confidence
in their leaders.
Caravan Fresh needs to have a set of values and ethics for online marketing that the
staff could closely follow. It should create posts that do not harm any religion,
ethnicity or cultures (Munshi, 2012). Every content created could rigorously abide by
these values and sensitive information that would damage brand image could be
avoided. For instance, a customer of Marc Orfaly's restaurant in Boston once posted
a negative comment about their pumpkin pie on the restaurant's Facebook page.
When the owner responded by insulting the customer's taste, it sparked outrage,
and the restaurant was criticized on social media for gross misconduct (Sen, 2019).
It is not possible to please every single user online; however, Caravan Fresh could
strive to deal with customers courteously in a way that does not ignite further
damage.
6.0 Conclusion
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and the interrelationships between marketing and other functional units are
described in detail. Moreover, the significance of digital marketing for Caravan Fresh
is critically analyzed. The author suggests that a practical strategic framework
should be established by Caravan Fresh to transform the business digitally.
Empirical research could identify the best methods to implement digital marketing
such as the use of websites and social media, as well as the best analytical tools to
monitor and evaluate the digital progress.
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