Marketing principles and

appliaction
Contents
Introduction:.................................................................................................................................. 1
1.1 Define marketing and explain the elements of marketing process......................................1
1.2 Evaluation of the benefits and cost of marketing orientation for kaffel ltd.........................2
2.1 Macro and micro environment factors which influence marketing decisions......................4
2.2 proposal of segmentation criteria to be used for products in different market...................5
2.3 Choosing a targeting strategy for kaffel ltd..........................................................................6
2.4 Demonstrate how buyer behavior affects marketing activities in different buying situation
................................................................................................................................................... 6
2.5 New positioning for kaffel....................................................................................................7
3.1 How products are developed to sustain competitive advantage.........................................7
3.2 How distribution is arranged to provide customer convenience.........................................8
 3.3 How prices are set to reflect an organization’s objectives and market conditions..............9
3.4 Illustrate how promotional activity is integrated to achieve marketing objectives..............9
3.5 Analyze the additional elements of the extended marketing mix......................................10
4.1 Planning of marketing mixes for two different segments in consumer markets................11
4.2 Illustrate differences in marketing products and services to businesses rather than
consumers................................................................................................................................ 12
4.3 How and why international marketing differs from domestic marketing..........................12
Conclusions:................................................................................................................................. 13
References:.................................................................................................................................. 13
Introduction:

Marketing is the integral part of business. Many people thinks if they produce good product their
product will be sold automatically. But to sell the existing goods of the organization and keep the
competition marketing is very essential for business. But success of organization depends on
marketing. Marketing covers the area after the production. These area contains advertising,
public relation, promotion and sales. And mostly marketing works on satisfying the customer.
And if the consumers of any organization are satisfied they come around. And the success of the
organization is very much depended in this coming around. In this assignment we will discuss
about the marketing principles. And it will help me to understand the marketing policy. We will
try to make a better marketing plan for kaffel ltd.

1.1 Define marketing and explain the elements of marketing process

Marketing aims at satisfying the customer. It builds a potential customer relationship. It diminish
the space between the quality of the product and the customer needs and wants. It creates value
and a long term relationship with the customer. So kaffel ltd. should expedite better marketing
activities to expand their business. to manage a better marketing strategy there are some elements
that should be considered. These elements are organizational goals or objectives, marketing
assessment or audit, environmental analysis, SWOT analysis, segmentation, differentiation,
positioning, 4P analysis, budget and etc.
Organizational goals and objectives is also known as company objectives. It determines the
level. Based on this level marketing action will be taken. These levels are sex, age, location and
etc. it also comprise the goal, mission and strategy of the firm. Kaffel ltd should set a reasonable
goals for their organization.
Marketing assessment or marketing audit is a report about the overall marketing performance of
the organization. Marketing assessment and audit is done by well throughout plan analysis and
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review. Keffel ltd. can assess its produce, competitors, market share, profit, distribution methods
etc.
Environmental analysis is defining the effect of environment on marketing plan of the
organization. It includes market growth, market trends and profitability.
SWOT analysis is the most important elements of the marketing process. It is the process of
defining the internal strength and weakness and external opportunity and threats. This factor has
a great impact on the organization. Kaffel ltd. should take this stage seriously to build a
structured marketing stage.
STP analysis is broadly known as segmentation targeting and differentiation. Segmenting means
dividing the of kaffel ltd based on different group. Targeting is the selection process. That means
from different group kaffel has to select one or more group to sell their product. Positioning is
the process of crafting the market offering to create image or identity among the customer.
These are the various elements of marketing process. Beside this there are 4p analysis which is
placing the product, place, promotion and people, marketing budgeting which is creating a figure
about the marketing cost and so on (Alserhan, 2011)

1.2 Evaluation of the benefits and cost of marketing orientation for kaffel
ltd.

Introducing the marketing policy is very important for the organization. As success of the
organizations depend on the marketing. To satisfy the customer needs and wants marketing is
very important. There are some benefits of marketing orientation for Kaffel ltd. These benefits
are given below:
Satisfying the customer need: satisfying the customer is very important. Success of the
organization depends on how effectively the organizations are satisfying the customer needs and
wants. If the customer of kaffel ltd is satisfied enough they will come around and they will be
potential customer for the kaffel.
Cost effective production: cost effectiveness is an economic analysis which compare the relative
cost of the product and outcomes of the product. Marketing helps to evaluate the outcomes of the

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product and helps to complete the rationale analysis. This helps to determine the cost of the
organization.
Increase sales growth: Marketing orientation helps to increase the sales growth of the
organization. Marketing promotes the product and helps to increase the sales of the product.
Long term customer relationship: marketing build a long term customer relationship with the
consumer. It makes the customer client for the organization.
Long term profitability: marketing helps to secure long term profitability. It aims at rapid
improvement of the product that secure the long term profit for the organization.
Marketing is not an easy task. It needs dedication, innovation. There are also some cost of
marketing orientation for kaffel ltd. These cost are given below:
Complication in continuous change of customer expectations: consumer expectation is very
dynamic. They needs and wants change time to time. So kaffel needs to change their product for
customer. But it is not an easy task. As kaffel produce furnishers they have to change the design
and material. In producing the new product old product gets unused. That creates a huge loss for
kaffel.
Risk in understanding customer mind: human psychology is very critical. If the marketers failed
to understand the customer mind and produce wrong product for them it will create loss for the
organization.
Marketing research: marketing research is very essential to conduct marketing project. It needs
lots of money. Without marketing research all other marketing activities can ruin in vain.
These are the benefits and cost of marketing orientation for kaffel ltd (Bramer, 2013)

2.1 Macro and micro environment factors which influence marketing

decisions.

There are some factor that affect the company directly and indirectly. These factors are
categorized in 2 ways. The first one is micro environment and the second factor is macro
environment. These factors are given below.

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Macro environment is close to the organization and that has a close relationship with the
company. Factors of micro environment are company, suppliers, marketing intermediaries,
competitors, publics, and customer.
Company: company affects the marketing plans directly. It has mission, objective, goal,
strategies, and policies. These mission, objective, goal, strategies, policies affect the marketing
strategy.
Employees: employees are the main element of the company. They produce product or supply.
So they influence the company in many ways. For example if any employee of kaffel suffering
from mental instability his work can affect the kaffel. By this employee can affect the company
in much way.
Suppliers: suppliers are those who provide goods for the organization. They affect the marketing
plan. For example if billboard suppliers do not supply properly then promotional activity can
disturbed.
Competitors: competitors consist of other similar business. They have an impact on marketing
campaign.
Marketing intermediaries: marketing intermediaries are physical distributors, marketing service
agencies or financial intermediaries.
Public: public are the potential buyer. In other sense who have an interest on company’s
activities they are the public.
Customer: Customers are the real buyer of the product. They needs and wants affect the
marketing strategies.
Macro environment is defined in a broader sense. Macro environment comprises those elements
that affect the micro environment. Macro environmental factors that influence the marketing
activities are given below:
Economic: economic factors comprise the pricing pattern, buying power and spending pattern.
Beside this the economic condition of the country also affects the macro environment.
Demographic: demographic factors consist the population density, age, gender, occupation.
Natural: natural resources and other natural calamities affect the activities marketing.
Technological: technological factors that affect the new market opportunity or new methods. For
example there is new method for TV advertising.
Political: political situation, law, governmental agencies influence the marketing activities.

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Cultural: cultural consist of the tradition, perception, norms, value of people of a certain place.

These are the factors that can affect the marketing activities of kaffel ltd (Brassington and Pettitt,
2003)

2.2 Proposals of segmentation criteria to be used for products in different

market.

Segmentation is dividing the market into distinct group depending on different criteria.
Segmentation is done based on different benchmark for example it can be done on demographic
factors or different wants and needs. But normally segmentations is done by the following
criteria.

Geographic segmentation: geographic segmentation is done depending on the region, area, state,
countries. For example kaffel can select any market in UK in which they have a good control.

Demographic segmentation: demographic segmentation is dividing the market based on age,

gender race, income, education and others. When kaffel selling its product for personal use they
can select a salary level. Or they can choose a certain class of people for selling product.

Psychographic segmentation: psychographic segmentation dividing the people based on

personality or life style. For kaffel they can produce a certain product for the people who lead a
luxurious life. Or they can produce certain product that middle class people can afford.

Behavioral segmentation: behavioral segmentation is differentiating the market based on

attitude, occasion or user status.

Beside this segmentation should be measureable, actionable, attainable and accessible. These are
the segmentation criteria for kaffel that are to be used for product in different market (Burns and
Bush, 2000)

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2.3 Choosing a targeting strategy for kaffel ltd.

Targeting is choosing one or more segment to serve. This process is mainly connected with
select any segment to sell the product. This step is very much important for kaffel. Because
selecting the appropriate segment is very much essential. Success depends on how well the target
has chosen. Targeting the segment for kaffel can be done based on following strategies:
Differentiated targeting: differentiated targeting is targeting two or more segment with different
offerings. In this targeting kaffel can offer different product for different people or class of
people.

Undifferentiated targeting: undifferentiated targeting is targeting with a single offer.

Concentrated marketing: concentrated marketing is targeting a large share of any segment from
the few. This means in which segment chances of being success is bigger organization choose
that segment.
As a furnisher company kaffel should choose differentiated targeting as they are selling product
for business use as well as personal use. So they have to come up with different plan for different
segment. These targeting will help them to maximize the profit (Curry and Curry, 2000)

2.4 Demonstrate how buyer behavior affects marketing activities in

different buying situation

Different situation come up in the market. This situation is created by the buyers. Marketers have
to anticipate in this type of situation. Each and every buyer of the market is different. So
marketers have to keep them in their mind. They just can’t create a single plan for any single
person or any single group. For example when kaffel is selling their product a business
organization won’t bargain much for the product. But when any person will buy any product
from kaffel they will see its price will try to buy it at a least price. Besides marketers have to
choose its marketing stage in which they will able to communicate with their customer. Using
social media for marketing for kaffel can be a good idea as they will find most of the customer
on internet. Beside this offering discount is the way to create new customer for the business.

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Most people wants to buy product at cheap price. So thus helps to collect new customer for the
product. Understanding the behavioral activity of the customer is very much important for the
business. If any organization fail to understand what customer wants to do and how they react
towards the company they won’t be able to provide the correct product and this will bring no
success for the organization (Davidson, Keegan and Brill, 2004)

2.5 New positioning for kaffel.

Positioning is very important for the business.it aims at making a brand that will occupy in the
customers mind. It is the process of placing the company image on consumer mind. Kaffel can
set its brand name by physical attributes, service, personal, location and image of the company.
They have to provide quality full product to its customer. They can provide luxurious product for
personal use and provide flexible and standard product for business use. As they also supply their
product for corporate use they can provide easy flexible product. This will create a good name to
the customer. They can also set its brand name by providing consistent good product at a
reasonable price. They can set an official motto for their brand name. Beside this there are some
criteria that make difference from other company. This criteria are importance, distinctive,
superior, easy communication system in the company for the customer, preemptive thus other
company cannot copy, affordable. Beside this unique decoration and advertising also helps to
create a unique brand name (Eechambadi, 2005)

3.1 How office furniture and other products are developed to sustain
competitive advantage.

Competitive advantage is a kind of advantage that organization gets by involving in competition.

Sustainable competitive advantage has a great necessity in completing the long term success.
Companies can get many opportunity by involving with the competition. There are two types of
competitive advantages. These advantages are given below:

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Cost advantage: cost advantage indicates that an organization is producing the same product than
their competitors. This advantage stems from quality that allows a business to overtake its
competition for example superior market position, skills, or resources. If kaffel can produce
products at low price by their skill or other operation than their competitors offering in a
relatively high price kaffel will get the cost advantage.
The other advantage is differentiation advantage that is advantage that an organization gets when
they are able sell a product which will carry advanced value to the customers and appealing a
broader segment of customers.

These are the sustainable competitive advantage that kaffel can achieve if they are more focused
on their competition. Kaffel should watch their production more carefully. If they can produce
product at relatively low price they will get market advantage. Beside this quality full propduct
always perform better in the market place. In these two ways product are developed to sustain
competitive advantage (Fletcher, 2002)

3.2 How distribution is arranged to provide customer convenience.

Distribution is one of the major tasks of marketing. By distribution process customer gets their
product at their preferable place. Through this process customer can get their product that satisfy
their needs and wants. It plays a major role for both customer and business. Usually most of the
distribution task is done by the intermediaries. There are many ways of distributing the product
such as extensive categories in which products are sold by keeping them in as many as possible.
Beside these companies can select their own intermediaries for distributing the product. And
there are also exclusive distribution process where the intermediaries is already been selected.
But customer can serve themselves in this stage. Customer can find the expected product in a
short time. And on the other hand business also gets some benefits as the customer also involved
in this type’s distribution. In this process sometimes buyers buy product for their desire. That
helps to get benefitted. So in this case proper distributions help to create a good land for the
organizations. So kaffel needs a good distribution process (Hall, n.d.)

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3.3 How prices are set to reflect an organization’s objectives and market
conditions.

Price plays a major role in marketing process. It has a great impact on customer’s mind and their
buying behavior. There are two objectives that should be considered while kaffel make price
decision:
Maximizing profit: in this situation companies wants to maximize their cash flow. In this times
companies incline to increase prices and they started to care less about competing prices. In the
case of competitive market companies decrees their product rate and enhance the demand of
product. This techniques increase the revenue.
Maximizing market share: maximizing market share defines the situation when a company wants
to beat the competitors to achieve a better market share. For this business mark their business
below that of their customer. So that customer chooses their product over their competitors. But
only price is not enough to increase market share. Product quality and other benefits are
important for maximizing market share.
To achieve these organization objectives for kaffel price must be set in this way (Lee, 2007)

3.4 Illustrate how promotional activity is integrated to achieve marketing

objectives

To achieve the organizational profit an organization must use some techniques. An organization
introduces a wide range of techniques these techniques are advertisement, promotion, direct
selling, and packaging. These techniques help to increase the sell.
Advertisement is a method of marketing communication. That is used to influence the spectators
to take or to continue something. Normally advertising is used for commercial offerings, political
support or ideology support. It informs the customer about it quality or materials. Advertisement
removes the knowledgeable obstacle. Beside information advertisement build the value of brand
that is follow up by the customer and maintain the customer base. Kaffel can build its brand
value by advertising their product. Beside this they can increase their sales by advertising their
product.
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Promotion includes discount or free products and sales mark down prices. It helps increase sales
of the product. It also provides privilege cards that make the customer client. Beside this they
increase their range by providing sample product. kaffel can give discount on their product to
increase their sales.

Kaffel can use this techniques to increase their sales (Nair,2009)

3.5 Analyze the additional elements of the extended marketing mix.

In marketing process 4p is very essential. 4p means product, place, price, promotion. Jarome Mc
Carthy first introduce the theory of 4p. But by the passage of time more 4p are added. This
extended theory of 4p is discussed below:
Process: it comprises the different techniques and methods that are used in marketing activities to
create new customer.
Physical environment: it comprises the physical setting and appearances of the service. It means
decoration and appearances of the service people.
People: people are the main element of business but it places in the extended version of 4p.
Customer buying decision depends on people selling the product. Salesman attitude have on
impact consumer. If the salesperson have a poor attitude buyers may not buy the product.
Productivity and quality: in order to reach in a better position in the market the company must
deliver right good at a right time.
These are the extended marketing that kaffel should maintain to get a better result (Palmer, 2000)

4.1 Planning of marketing mixes for two different segments in consumer

markets

Segmentation is very important for business. People of different segment may like different
product. Planning for kaffels’s product for different is given below:

Two segments are who purchase for commercial use and who purchase for personal use.

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Product

For commercial use people likes to be simple and standard product and also comfortable.
Commercial people like flexible product.

For personal people buy luxurious product and comfortable product. They like the product that
attracts more.

Price
For commercial use people pay according to their budget but they bargain less than other
consumer. They pay standard price for standard product.

Beside this who buy product for personal use they bargain and they are ready to pay anything if
they chooses any product.

Place

Place should be industrial area and corporate area. That attracts the corporate people easily.

It should be on easy place where people can transport easily.

Promotion

Corporate people like commercial advertisement and they don’t wait for discount or other
promotional activity.

Consumer are attracted to colorful advertisement. They are also attracted to discount and other
offer.

4.2 Illustrate differences in marketing products and services to businesses

rather than consumers
When we sell products to consumer it is called B2C and when we sell product to another
business we call it B2B business. The differences between how a business should approach are
given below:
Major difference is that business buyers buy product to resell them or corporate use. But for
them no marketing is used but they buy the product. But if marketing is needed for this sector

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direct method is used for them. But this advertisement does not required to be flashy. Simple
advertise are more effective for these type of business. . Although businesses involved in B2B
selling, must be aware to build customer loyalty and should be trusted although. Beside there are
some also key differences such as networking done by advertising, selling completed by the
signs, Tender given by the media and so on (Sargeant and Wymer, 2008)

4.3 How and why international marketing differs from domestic

marketing.

International and domestic market is different. It can be more complicated in one country and
easier in one country. These different are counted by four ways. These are given below:
People: people are different in one country. There are different language, different culture and
trend. Marketing in one country may mean the opposite in another
Demographic: there are different characteristics between demographic groups in different
countries.
Psychographic: people of different countries have different psychology. Psychographic
characteristics differ across the nation. Every single culture has single meanings.
Buying Power and habits: financial condition differs from country to country. Habits are also
very different.

So during taking marketing steps in different country or region kaffel should keep these factors
in mind (Zoltners, 1982).

Conclusions:

At last we have seen the different steps of marketing. We hope that we have covered every
branch. Based on this discussion there may be a lot of change but the main principle of
marketing and the application is the same. By this discussion we have understood the importance
of marketing principles. And beside this we have understood the different application of
marketing principles. This will help us a lot for further knowledge.
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Fletcher, A. (2002). Principles and practice of pharmaceutical medicine. Chichester, West

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Sargeant, A. and Wymer, W. (2008). The Routledge companion to nonprofit marketing. London:
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