Assessment Title Report on nature of marketing and the marketing decisions

Qualification Module Code and title

Advanced Diploma in Business HP6N 47: Marketing: An Introduction

Student ID Assessor’s Name

02000991 Mr. Chrishan Smith

Cohort Date Issued Submission Deadline

25th August 2021 20th September 2021

No. Learning Outcomes Task no

L01 Explain the nature of marketing and its importance in organisations

L02 Explain marketing decisions for a product based and a service organisation

Learner Declaration

I certify that the work submitted for this Assessment is my own and research sources are fully
acknowledged.

Student Signature:………………………………… Date:2021 -09-21

1
1. An introduction that provides some brief information about the organization you have chosen
and the key characteristics of the marketing concept

Keels Super is one in all the premier super

market chains within the country, that
adds worth to their product to enhance
client satisfaction and retain them within
the long run. Keels Super could be a food
market chain that has variety of
supermarkets in several of the most
important cities within the country. Keels
Super is that the initial super market chain
within the country United Nations agency
took the initiative in dynamic the food market culture by creating several changes, especially within the last
decade. There have been solely few supermarkets for the last 20 years, however they weren't client oriented,
and however Keels Super is that the initial food market that has created a fast modification in client care.
They need introduced some valuable and effective advertisements within the food market business. The
shoppers are enjoyed edges like wide alternative straightforward payment comfy searching atmosphere.
Keels have made several staff in country thanks to their effectiveness of their retailers. currently Keels has
been one in all the leading supermarkets in country, as a result of their client services, quality product, and
their selling techniques square measure terribly effective than different supermarkets. Within the recent
past Keels inquisitive about penetrating into areas that it doesn't have market presence? (Ex.)A food market
outlet was opened in Gampaha and it tries to penetrate in to untapped areas of the business.

Keells, has opted to form the foremost amendment from its dominant red and emoticon featured complete
identity. They need opted for a dramatic makeover in inexperienced. They need additionally transitioned
their name to easily ‘Keells’ by dropping the ‘Super’ descriptor. This was to be expected following the
name-change of Keells meat product to Krest that has freed up the putative company complete for exclusive
use within the food market business.
Characteristics of Marketing Concept

The idea that achieving organizational goals depends on knowing the needs and wants of the target markets
and delivering the desired satisfactions better than competitors do

Customer orientation

The marketing process begins with knowing the customers’ desires until a business can create a product or
offer a service that can meet and satisfy them. Happier customers lead to higher profits.

Integrated approach

Coordinated collaboration between various departments within a business (marketing, production, finance,
etc.) is crucial to meeting the customers’ needs.

Long-term perspective

Creating long-lasting relationships with consumers with consistent service and quality that they can trust
ensures profits, retaining customers, and attracting new customers over a long period of time. This makes
a business into a trusted and well-known brand.

Profitable sales volume

Earning a profit over a long period of time is a tell-tale sign of whether a business’s marketing efforts were
a success. Not only does a business want to increase profits, but they want it to happen consistently long-
term

(Kierra Benson,TechFunnel Contributors, 2020)

2. An explanation of the organization’s micro and macro environment

Macro Environment

It is evident through the analysis of the PESTEL factors below (Table 1.1), that the Sri Lankan Macro
environment is highly dynamic. The analysis proved that the factors identified would have an impact on
both traditional marketing activities and digital marketing activities of Keells Super

Even though few factors of the political environment prove unstable, certain factors such as “the
dissemination of 1000 accessible Wi-Fi zones island-wide by August 2015”- (Colombopage,2015) by the
government, would give Keells Super an opportunity to manoeuver interactive digital strategies such as
“Location based marketing” to attract users of mobile devices at these centers. It also widens Keells
Super’s scope of the digital market. However, the legal factors impose limitations to the digital
environment in Sri Lanka. Factors such as, currency remittance and fund transfer will have an impact of
Keells Super’s international transactions completed by customers willing to delivery non- durables to
their local homes in Sri Lanka.
Micro Environment

The porter’s five forces will look at the balance of power in the market between Keells Super and other
similar organizations in the sector. The five forces proves that the Micro Environment is equally versatile
as the Macro environment in Sri Lanka. The growing need for digitalization and the internet by
businesses reduce the substantial investment for e- marketing FMCG’s in Sri Lanka and thereby imposing
a threat to Keells Super. Additionally, the threat of existing rivalry could increase due to the growth
potential of the industry (YoY Growth of 30%) followed by an indication towards a prosperous future by
the macroeconomic factors and to increased mobile/internet usage in Sri Lanka
 3. An explanation of why market research is important for the organization, and two examples of
how the organization could collect and use market research. The examples must include one
qualitative and one quantitative technique

 Successful market planning depends upon informed decision making

 Identifying needs and wants in the market

 Understanding Competition and the Environment

 Develop marketing objectives

 Selecting target markets

 Understanding Consumers and Positioning the product

 Developing 4 Ps strategies

 Minimize Risk

 Information is the fuel that runs the marketing engine.

A Process that first determines what information marketing managers need and then gathers, sorts,
analyzes, stores, and distributes relevant and timely marketing information to system users.

Gathered via monitoring of everyday data sources, observations, discussions with sales representatives

 Competitor Websites

 Industry trade publications

 Direct field observations

 Social Listening Tools / Hashtags

The process of collecting, analyzing, and interpreting data about customers, rivals, and the business
environment in order to improve marketing effectiveness.

Syndicated research

Research by firms that collect data on a regular basis and sell the reports to multiple firms

Custom research reports

Research conducted for a single firm to provide specific information its managers need.
Qualitative research involves the collection of data that is open to interpretation and where there is no
intention of establishing statistical validity,

eg : focus groups, in depth interviews, small scale surveys.

Research Eg: Job satisfaction of employees in selected outlets

Selected target is - Employees of Keells

Quantitative research involves the collection of data that is quantifiable and is not open to the same
level of interpretation as qualitative research,

eg : large scale surveys, sales figures, government statistics.

Research Eg: Quality of consumer foods and items

Selected target is – Customer / Consumer of Keells

4. An explanation of the importance and benefits of market segmentation and targeting to the
organization and the process that the organization may use to segment and target the market

Market Segmentation

 Dividing a market into smaller segments with distinct needs, characteristics, or behavior that might
require separate marketing strategies or mixes.

 Companies divide large, heterogeneous markets into smaller segments that can be reached more
efficiently and effectively with products and services that match their unique needs.

Using Multiple Segmentation Bases

 Marketers use multiple segmentation bases to identify smaller, better defined target groups

 Nielsen is an example of providing multivariable segmentation systems to help companies to

segment their market.
During the year under review, lower discretionary spending patterns negatively impacted demand for
some of our products although volumes of both sausages and meat balls our core products saw an
increase. The proliferation of vendors offering sub-standard, low cost frozen foods in loose form, thereby
compromising the integrity of the cold chain and food handling standards, continues to be of concern. In
the face of such testing conditions, the focus was to develop a compelling branding strategy coupled with
consumer education to underpin all marketing efforts for the year. The brand proposition capitalized on
our versatile portfolio. The Keells and Krest range of products were promoted as the brand of choice for
the mass market to satisfy a diverse variety of taste profiles and consumption occasions, while the high-
end Elephant House (EH) range leveraged on its unique taste properties to fulfil the needs of the more
discerning palate.
5. An explanation of marketing theory, supported by examples of the following:

a. Product mix decisions that the organization has taken

The complete range of products present within a company is known as the product mix. Numerous
products are present in any multi brand organization. No organization in today’s competitive world can
take the risk of being present in the market with a single product. If the company has only a single
product then either the demand for the product is too great or the company does not have the resources to
expand (Mukta Mehrotra,Dr. S.S Khanuja, 2016)

KEELS

I. Product Mix:

Product mix is the combination of total product lines within a company. Taking a very common example
a company like KEELS has numerous product lines like food, beverages, vegetables, Meats, Sanitizery
items, bakery items, etc. Likewise product mix with respect the combination of all these product lines is
the product mix.

II. Product Line:

A subset of the product mix is known as the product line. The product line generally refers to a type of
product within an organization. Thus the number of different types of products is equal to the number of
product lines. If we take a very general example of KEELS there are a number of product lines for
example milk based product Milkmaid, food products like Maggi and chocolates like Ritzbury and such
other product lines. The other examples are telephone bill payments, Electricity bill payments, water bill
payments, etc.

III. Length of Product Mix:

If a company has 3 product lines and 9 products within each product line then the length of the product
mix is 27. Thus the total number of product lines forms the length of the product mix. This equation is
known as the product line length. For example if KEELS has 5 product lines of Dairy products, Bakery
items, fresh vegetables, meats and within each are 4 products each then we will say that the length of the
product mix will be 20.

IV. Width of the Product mix:-

The product line width is a depiction of the number of product lines which a company has. Considering
the above example if there are 3 product lines within the company and 9 products within each product line
then the width of the product mix will be 3 only. Continuing with the above example if KEELS has 5
product lines and within each product line there are 4 products each then width of the product mix will be
20.

V. Depth of Product Mix:

The depth of the product mix is the total number of products within a product line. Thus if a company has
3 product lines and 9 products in each product line then the product mix depth will be 9. As per above
example the depth of product mix will be 4.

VI. Product Line Consistency

The lesser the variation between the products the more is the product line consistency. For example
KEELS has various product lines which are all Consumer goods. So many product lines which are
completely independent of each other than the product mix consistency will be low.
b. Place — how the organization makes the product or service available to the customer, Eg.
Channels of distribution

Distribution strategies (the place component) outline when, how, and where the firm will make the
product available to targeted customers.

 Sell directly to the final customer or work through wholesalers and retailers?

 Choosing the right distribution strategy depends on product, pricing, and promotion decisions.

Few producers sell their goods directly to final users. Instead, most use intermediaries to bring their products
to market. They try to forge a marketing channel (or distribution channel)—a set of interdependent
organizations that help make a product or service available for use or consumption by the consumer or
business user. A company’s channel decisions directly affect every other marketing decision. Pricing
depends on whether the company works with national discount chains, uses high-quality specialty stores,
or sells directly to consumers online. The firm’s sales force and communications decisions depend on how
much persuasion, training, motivation, and support its channel partners need. Whether a company develops
or acquires certain new products may depend on how well those products fit the capabilities of its channel
members. Companies often pay too little attention to their distribution channels—sometimes with damaging
results. In contrast, many companies have used imaginative distribution systems to gain a competitive
advantage. Enterprise Rent-A-Car revolutionized the car-rental business by setting up off-airport rental
offices. Apple turned the retail music business on its head by selling music for the iPod via the Internet on
iTunes. FedEx’s creative and imposing distribution system made it a leader in express package delivery.
And Amazon.com forever changed the face of retailing and became the Walmart of the Internet by selling
anything and everything without using physical stores.

Distribution channel decisions often involve long-term commitments to other firms. For example,
companies such as Ford, McDonald’s, or Nike can easily change their advertising, pricing, or promotion
programs. They can scrap old products and introduce new ones as market tastes demand. But when they
set up distribution channels through contracts with franchisees, independent dealers, or large retailers,
they cannot readily replace these channels with company-owned stores or Internet sites if the conditions
change. Therefore, management must design its channels carefully, with an eye on both today’s likely
selling environment and tomorrow’s as well. (Philip Kotler,Gary Armstrong,Pearson Education Limited,
2016)

Using two or more marketing channels to reach customer segments in one market area is Multi-Channel
Marketing.

Each channel can target a different segment of buyers, or different need states.

c. The pricing methods used by the organization

Business owners within the market business will draw on several worth methods to maximize profits. the
apparent alternative is to supply lower costs than each different store, however the equally obvious
result's that this strategy keeps profits for good low. For this reason, several supermarkets choose a lot of
complicated methods to confirm profit whereas still appealing to price-conscious consumers.
 Loss-Leader Pricing

Loss-leader valuation may be a common market strategy and happens once the distributer sells high-
demand things at untypically low costs, notwithstanding those market costs need taking a loss on it
specific item, explains food web site cooking cognitive content. For instance, supermarkets usually have
temporary discounts on low or alternative house necessities. The goal is to draw in customers in search of
the discount. Those discount hunters’ square measure possible to shop for alternative things if solely out
of convenience, that is however the shop remains profitable.

Sometimes supermarket decrease their prices for dairy products and bakery items prices, because those
products will get expired soon.

 Everyday Low Pricing

Supermarkets typically use loss-leader evaluation on a restricted basis as a part of a short lived sale. One
drawback with this approach is customers begin to mistrust advertisements. as an example, a client would
possibly hear a couple of discount however worry that the promotion can finish before he has time to
induce to the shop, or believe there's a hidden catch, sort of a demand to shop for an outsized amount of
things.

 Loyalty Discount Programs

Supermarkets will collect valuable client knowledge is to form a loyalty program. This needs customers
to choose in to a data-collection program, that tracks their purchases. Such programs provide many worth
strategy enhancements. First, change of integrity the program qualifies customers to receive lower costs.
d. The organization’s promotional mix

The promotion mix is the specific blend of advertising, public relations, personal selling, and direct
marketing tools that the company uses to persuasively communicate customer value and build customer
relationships.

Basic Promotion
objectives

Related objectives:
 Create awareness & interest
Inform  Educate, position

 Influence, reposition
 Build seller buyer relationship
Persuade  Maintain top of mind awareness or recall

 Maintain seller buyer relationship

 Maintain loyalty
Remind

 ATL Marketing Definition

‘ATL Marketing’ stands for Above the Line Marketing ‘. This kind of marketing is the kind of marketing
that has a very broad reach and is largely untargeted.

 BTL Marketing Definition

‘BTL Marketing’ stands for Below the Line Marketing ‘. This kind of marketing is the kind of marketing
that targets specific groups of people with focus.

 TTL Marketing Definition

‘TTL Marketing’ stands for Through the Line Marketing ‘. This kind of marketing is really an integrated
approach, where a company would use both BTL and ATL marketing methods to reach their customer
base and generate conversions.

e. The importance to the organization of the role of people, process and physical evidence in the
marketing of products or services
The original marketing mix was 4 Ps; product, place, promotion and price. Over time, 3 additional Ps
were added to cover the intangible nature of services;

 People- The people who your customers come into contact with and who they see as
representing your brand are the people who determine the quality of service your customers
receive. This applies more to services, but also impacts on businesses making tangible
products. Cahiers and trainees with uniform, Supervisors with name tag.

Happy, skilled and motivated staff make happy customers. They are more likely to think
about the customer and deliver good customer service if they are well trained and are
recruited for their positive attitude to customers.

 Processes- The processes involved in considering, purchasing, delivering and supporting

your products and services to the customer have an impact on the way in which your
customers perceive you.
  Physical Evidence- Physical evidence is a term used to describe the type of image your
business portrays through its physical presence; the premises, the appearance of staff,
company vehicles and so on.

Providing training delegates with certificates or charity

supporters with a label pin or wristband are also
examples of physical evidence. Bags which have
printed brand and logos, Bills with brand & logos etc.

These tangible symbols directly represent Keells values and so need developing carefully.

6. How the organization’s marketing mix responds to changing market conditions

The major marketing mix tools are classified into four broad groups, called the four Ps of marketing:
product, price, place, and promotion. To deliver on its value proposition, the firm must first create a need-
satisfying market offering (product). It must then decide how much it will charge for the offering (price)
and how it will make the offering available to target consumers (place). Finally, it must engage target
consumers, communicate about the offering, and persuade consumers of the offer’s merits (promotion).
The firm must blend each marketing mix tool into a comprehensive integrated marketing program that
communicates and delivers the intended value to chosen customers. We will explore marketing programs
and the marketing mix in much more detail in later chapters. (Philip Kotler, Gary Armstrong, 2016)
Over time, a business may adapt its marketing mix to suit the business climate, changes in trends relating
to customers’ wants and needs, changes in the size and scale of the business, changes in the business’ aims
and objectives, or changes in demand for a product or service.

Changes to products- products may have to possess their style updated, be discharged in an exceedingly
cover version or have a code update. In addition, trends like veganism Associate in healthier lifestyles will
cause an inflated specialize in sports merchandise or environmentally friendly merchandise. Businesses got
to develop new merchandise to suit dynamic client needs and wishes.

Changes to prices -Many businesses frequently modification their costs. One reason is that costs might
modification to mirror demand. As an example, if demand will increase, costs might increase, whereas if
demand decreases, costs may decrease.

Changes to place- to reflect the dimensions of a business or its magnified use of technology. Several
businesses that historically had main street stores square measure currently putting in place websites and
dynamic their distribution channels to adopt an additional trendy and efficient approach. Many purchasers
currently use the web to buy and search prices/costs.

Changes to promotion- any retailers currently sell through the net, either solely or in conjunction with a
network of stores and/or paper-based catalogues. The net brings opportunities for retailers to sell to and
communicate with their customers through one extremely interactive and versatile channel. Within the final
a part of this course, you may study however retailers use promoting communications to interact the interest
of their target customers
References
Chandrasekera, D., n.d. Research Portfolio on the digital environment and Keells Super's Digital
Activities.pdf.

Kierra Benson,TechFunnel Contributors, 2020. What is Modern Marketing Concepts?. Characteristics of

Marketing Concept, 20 july.

Mukta Mehrotra,Dr. S.S Khanuja, 2016. Product Mix of Products of LIC of India- An Analysis. 07 July.

Philip Kotler, Gary Armstrong, 2016. Marketing: Creating Customer Value and Engagement. In: s.
edition, ed. Principles of Marketing. s.l.:s.n.

Philip Kotler,Gary Armstrong,Pearson Education Limited, 2016. Principles of Marketing,The Nature and
Importance of Marketing Channels. sixteenth edition ed. s.l.:s.n.