INTRODUCTION

Marketing is the process of exchanging the value of a product to customers for the purpose of selling the product or services. It has termed as a critical business activity that facilitates various strategies for marketing the product. The main purpose of the activity is to fulfil the needs and requirements of the customers so that to maintain long term sustainability in the market. It is more than a business function as it can be used as a guideline so that to perform marketing activities. In the present research report, the researcher has focused on marketing practices of Sainsbury’s. Being the third largest chain of supermarkets in UK, it has captured the market share of UK in retailing sector by providing range of products. In order to promote the products in the market, it has adopted various marketing as well as promotional strategies so that to influence the mindset of customers. There are various factors in the environment that affects the business directly and indirectly. The concept of market orientation is essential for the organization as it helps to find out the factors that develops the opportunities of growth (Kapferer, 2008).

Task 1 Concept and Process of Marketing

1.1 Elements of marketing process

According to James L. Burrow “Marketing is termed as an activity that helps the organization to maintain effective relationship with the customers. It is the business activity that is required at every phase so as to get high competitive advantage”. With this process, the organization would be able to generate high revenues with high customer satisfaction. The elements of marketing mix can be classified into seven categories and all are essential as all plays different roles. In order to raise the customer base, it is important for Sainsbury’s to identify and satisfy the needs and demands of the customers (Keller and et. al., 2011). The elements of marketing process comprises of following aspects that helps the organization to undertake several processes:

First of all the organization is required to analyse the terms and conditions of market so that to identify the level of competition. Scanning is required about market terms as that will also help the business to identify its sustainability ratio (Middleton, 2010).



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At the next level, the business is required to identify the nature and preferences of customers as that will also help in targeting the customers effectively. At the next level, Sainsbury’s is required to formulate specific strategies so that to proceed with different process of marketing. Strategies are required for Sainsbury’s to frame so that to promote products at market place. After framing, implementing the strategies needed to be done with efficient workforces so that to reduce the opportunities of issues and errors.

Finally, Sainsbury’s is required to monitor and review the performance and effectiveness of strategies so that to find out areas where further improvements are required (Malefyt, 2009).

1.2 Benefits and costs of a market orientation for Sainsbury’s

The process of market orientation is essential for Sainsbury’s as it will help the organization to build competitive advantage. The process is beneficial but on the other side it is costly too. The benefits are mentioned as under:

With the help of market orientation, the products of Sainsbury’s can be effectively introduced in the market and this also reduces the chances of failure.

  • Long term sustainability can be achieved and this will also help Sainsbury’s to improve and widen the product line (Orsato, 2006).
  • The below mentioned are some of the cost factors of market orientation:
  • The practice is based upon assumptions and this will make Sainsbury’s to suffer. As it can be said that pre planning and appropriate configuration of activities are requisite.
  • Sometimes companies’ pays attention towards customer centric approach and this reduces the focus on attributes of products (Palazzo and Basu, 2007).

With the help of SWOT analysis and PESTEL model, the market conditions of Sainsbury’s can be identified. The economic instability of the country affects the economic condition of the company. There are various political factors such as rules and regulations, policies and restrictions that affect the business of Sainsbury’s. The environmental factors also affect the business practises of Sainsbury’s and to reduce them, environmental awareness is required. Technological factors affect the growth strategies of the business.

SWOT analysis:

STRENGTH

Brand name
Enhanced organizational configuration

WEAKNESS

Enormous competition
Lack of cheaper priced goods

OPPORTUNITIES

Prospects of extension and diversification
Revenue generation through implementation of complex technology

THREATS

Large number of foreign companies coming into market
Low monetary recovering

Task 2 Using the Concept of Targeting, Segmentation and Positioning

2.1 Macro and micro environmental factors that influence market decisions

Macro and micro environments both fall into the categories of environmental scanning. It is important to place equal emphasis on both the factors as it affects the firm’s ability to build and maintain successful relationships with customers. Some micro factors are discussed as under:

  • Tesco, Asda, Morrison’s are the major competitors that can affect the business of Sainsbury’s. Their strategies, policies and practices can affect the current marketing practices of Sainsbury’s (Pencak, 2013).
  • There are various factors that restrict the supply of resources and this thereby affects the business decisions of Sainsbury’s.
  • The tastes and demands of the customers’ changes frequently and this affect the current practices and strategies of the business (Schnnars, 1998).

Below mentioned are some of the macro factors:

  • Economic condition of the country changes the economic power of the consumers and this affects the marketing practices of Sainsbury’s.
  • The advancement in the technological factors affects the current and existing practices of business as competitors’ pays high attention to technological advancements so that to snatch customer’s attention (Schultz and Hatch, 2003).
  • There are assorted policies of government such as monopolies legislation, tax policy, employment law, environmental protection laws, regulations over international trade, government continuity and stability that distress the business practices of Sainsbury’s.
  • Nowadays cultural issues are becoming major issues in an organization. It has been observed that the organizational member of Sainsbury’s were not ready to adopt determined culture (Waeraas and Solbakk, 2009).

2.2 Segmentation criteria to be used for products in different markets

Segmentation method

  • Purpose of segmentation
  • Geographic segmentation
  • Regions, states, nations and across the boundaries

Psychographic segmentation

  • Standard of living, degree of loyalty, occasions and benefit required

Demographic segmentation

  • Age group, gender, education level, income level, religion and marital status

The organizational member of Sainsbury’s can segment the market on the basis of three categories. In order to improve the current practices and strategies of product line, several new attributes can be added in all the products. The criterion of segmentation is based on marketing strategies. On the basis of geographic segmentation, the market can be divided its customers according to the number of customers on specific region, state and nation. Demographic segmentation facilitates segregation of market on the basis of age group, income level and education level. The process will further facilitate targeting procedure (Middleton, 2010). Here in the present case, Sainsbury can use In Psychographic segmentation wherein the company can target the market on the basis of living standard, lifestyle and degree of loyalty of the customers as these are those category people which gets attracted by the fast food respectively. For UK market, geographic segmentation will be emphasized on mainly states and regions and for European market, this would also include nation wise or cross border division (Wengrow, 2010).

2.3 Targeting strategy for selected product

Targeting is the process of selection of potential customers that company wishes to sell its products. The process comes after targeting. The process facilitates segmentation of market, choosing the appropriate segment and after that it determines the targeting of product according to all segments. Target customers are those prospective customers of a company that shows brand constancy to the company. In the process of marketing, a specific market is selected with specific group of customers so that to bring effectiveness in selling. In retailing sector, numbers of substitutes are there for a product and Sainsbury’s can make use of them at the time of high demand. There is different targeting strategies available for Sainsbury’s to follow such as undifferentiated, concentrated and differentiated or multiple targeting strategies. For the present case, differentiated targeting strategy can be used as that will help Sainsbury’s to increase revenue ratio. It also focuses on specific market thus it will be helpful for Sainsbury’s to deal effectively with the targeted segments.

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2.4 Promotional strategies facilitate increase in selling and profit maximization.

It is required for Sainsbury’s to identify the needs and habits of the customers so that to adopt promotional strategies accordingly. There are different macro and micro aspects that impinge on the marketing practices and decisions of Sainsbury’s.

Personal factors: This comprises elements like occupation, life cycle and economic status come up to this category (Ham, 2008).

Cultural factors: Buying habits of the customers are affected by the culture which surrounds them.

Social factors: This incorporates the family, reference groups and other member groups which effects buying decision of an individual (Waeraas and Solbakk, 2009).

These are all such factors that highly changes the buying behaviour of customers and also there are various areas of Sainsbury’s that gets affected when behaviour of customer changes. All that areas are changes in production process, affects the customer base and affects the stability of the organization.

2.5 New positioning for a s elected product/service

  • Positioning strategy
  • Pricing strategy
  • Strategies related to production
  • Cultural Strategy
  • Based on promotional strategies
  • Brand awareness

As apparent, there are various strategies that can be used for promoting the product among the potential customers. It is required for the marketer to analyse the terms and conditions of the market so as to frame competitive strategy. In order to increase customer loyalty, it is required for Sainsbury’s to maintain the quality aspects (Heding and et. al., 2008). In order to promote the product at the market place, it is required for Sainsbury’s to set different positioning strategies for both the targeted groups for fast food such as for youths, promotion can be done through social media sites as most of the youngsters are available currently on this place. Whereas for kids, Sainsbury’s can position the product on the basis of pricing strategies in which low prices can persuade range of customers. There are so many other strategies that could also be used such as price and product differentiation, online promotion and product packaging.

Task 3 Understand the Individual Elements of Extended Marketing Mix

3.1 Explain how products are developed to sustain competitive advantage

Products are the only aspects that help the organization to develop the opportunities of competitiveness. There are various methods that can be used so that to develop the life cycle of the product (Palazzo and Basu, 2007). With the help of product differentiation strategy, Sainsbury’s can remain competitively in the market. With the help of market orientation and market research, the terms and conditions of the market can be evaluated. In order to retain the potential customers, it is required for Sainsbury’s to consider quality aspects as this will also help the organization to achieve high competitive advantage. Here are some of the ways by which competitive advantage can be achieved:

  • Product differentiation
  • Focus on quality aspects (Waeraas and Solbakk, 2009).
  • Timely and effective services
  • Large number of cheaper products
  • Innovative packaging

The above mentioned are the appropriate factors that can help Sainsbury’s to get high competitive advantage. Here in the present case, Sainsbury’s is required to bring cheaper and affordable products in the existing product line so as to attract middle class people. Timely and effective services can also help the company to retain the customers and thus competitive advantage can be achieved. There are various customers that get attracted after looking at the innovative packaging. It is sternly recommended to Sainsbury’s to adopt branding strategies so as to get long term sustainability. Multi branding is the concept that will help Sainsbury’s to widen the product line and also to get high customer loyalty (Ham, 2008). With the help of product development strategy, Sainsbury’s needs to add several elements in the existing products as through this, competitive advantage can be acquired for longer span of time.

3.2 Arrangement of distribution to provide customer convenience

The additional and extra cost on the operations can be reduced by adopting proper channel of distribution. There are various customers that wish to prefer buying through online. It is required for Sainsbury’s to publicize goods and services at various promotional and social networking sites. In order to reduce the transportation cost, online selling is the best method. There are diverse organizations that involves diverse intermediates so that to endow the product to the customers. It is essential for Sainsbury’s to deliver timely services to the customers so as to reduce the probabilities of toggling of the customers (Palazzo and Basu, 2007). Hence to provide fast food to the customers, it is crucial for Sainsbury’s to use online mode of services as through this, large pool of customers can be persuaded and retained. There are varied number of shops and malls in UK and Sainsbury’s can use such places to place fast food and this will also assist in attracting large number of customers.

3.3 Explain how prices are set to reflect an organization’s objectives and market conditions

There are various types of pricing strategies that can be adopted by Sainsbury’s, but the most effective strategies are mentioned as under:
Penetration pricing: At the initial stage, Sainsbury’s can set low prices of its goods as compared to its competitors. After achieving market share, it can gradually increase the level of prices so as to become more competent.

Skimming pricing: In order to widen the product line, Sainsbury’s can place high prices at the initial stage (Brand Management, 2012).

Premium pricing: This strategy would allow Sainsbury’s to divulge the superiority of the product. The prices are too high to afford.

Cost plus pricing: In this type of strategy, the value of the product can be known after adding a fixed percentage of profit in it. It is the finest strategy that can help the organization to generate profits (Wengrow, 2010).

Competition pricing: Prices can be determined after considering the competitor’s prices. In competitive pricing, prices are determined on the basis of competitor’s analysis.

3.4 Promotional activities are required so that to achieve marketing objectives

There are various promotional activities that have already been adopted by Sainsbury’s. At the same time, these strategies can also help Sainsbury’s to enhance the sales of newly introduced products at the market place. An organization can achieve number of advantages from the promotional strategies and some are mentioned as under:

  • Engender high profits
  • Assists to grasp attention of potential customers
  • Long term sustainability (Ham, 2008).
  • Helps in achieving competitive advantage
  • There are diverse modes by which product can be promoted in the market and here are some of the ways of product promotion:
  • Direct selling (Heding and et. al., 2008).
  • Personal selling
  • Advertisements
  • Door to door selling
  • Exhibitions

3.5 Additional elements of the extended marketing mix

People: People are the personnel members of an organization that directly contacts the customers. It is required for the organizational member of Sainsbury’s to develop the skills and talents so as to effective handle the procedure of selling.

Process: Marketing is a process that comprises of various activities. The activities of marketing ensure increase in profit maximization (Ham, 2008).

Physical evidence: The services cannot be measured as they are intangible in nature. So it is required for Sainsbury’s to provide some kind of physical evidence against the services.
All the elements of marketing mix are essential for an organization. In order to incarcerate the market share, it is required for Sainsbury’s to consider the importance of all elements (Gevlani and et. al., 2008).

Task 4 Use of Marketing Mix

4.1 Plan marketing mixes for two different segments in consumer markets

The four major elements of marketing mix are product, price, place and promotion. The income of the customers identifies classification of customer segments. In order to target middle income groups, products related to food can be offered whereas high income groups are offered with products of accessories. Marketing mix for both groups:

Product: Different types of goods can be offered to both the types of segments according to their income groups like as cheaper products for low income and Exclusive products for high class groups (Ferrell and Hartline, 2010). Sainsbury’s can also offer fast food for kids based on different flavors.

Price: Low prices are required to offer for low income group so that they can easily acquire it and for high income group, quality priced goods can be offered. Other than this, low prices are required to offer for kids as they can easily buy it.

Promotion: Sainsbury’s can adopt online promotional strategy in case of accessories whereas; sales promotional strategies can be adopted for consumable products. In order to promote goods for kids, Sainsbury’s is required to adopt online techniques as kids are highly available at that place.

Place: For both groups, it is necessary that products are available at the right place to the customers (Doole and Lowe, 2008). Sainsbury’s can avail goods to kids by placing products nearby their school campus as that will directly persuade kids to buy it.

4.2 Differences in marketing products and services to businesses rather than consumers

B2B and B2C model of marketing are totally contradictory to each other. When a business supplies goods to another business, the activity is termed as business to business transaction. In B2C, the business makes transaction directly with the customers. The market of B2C is narrow as compared to B2B. In B2C, the message is short as includes only point messages whereas in B2B, the message is lengthier and descriptive. Features of product services are:

  • Intangible (Brand Strategy, 2012).
  • Perishable
  • Inseparable

If Sainsbury’s promotes the goods for B2B concept that it might have to focus on quality aspects. The main aim of B2B concept is to maintain and build relationships with the business parties so that to acquire long term sustainability. Whereas in B2C concept, the business has to frame effective marketing strategies so that to cope up with customer’s demand.

4.3 Difference between domestic and international marketing

The concept of domestic marketing is different to international marketing and below mentioned points are several differences between both the concepts.

  • On the basis of scope, international marketing has wide scope whereas the scope of domestic market is narrow.
  • As compared to domestic marketing, an organization can achieve number of benefits from international marketing (Brand Management, 2012)
  • In domestic marketing, company usually focuses on customers within the market like as UK market focuses only people living in UK whereas in international marketing, company usually focuses on people living inside and outside UK such as in Germany, Italy, Poland and etc. This entirely changes all the processes of an organization.
  • The company engaged in international marketing needs to pay high attention towards political aspects whereas less attention is required in domestic marketing (Christensen and et. al., 2005).

CONCLUSION

Attributing the whole report, it can be said that marketing practices can provide number of benefits to a firm. The organizations engaged in international marketing needs to consider varied aspects so that to protect the business from legal issues. With the help of promotional activities, an organization can generate high revenues.

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