BUS106 Marketing Principles

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Question

Assessment Description

The purpose of this individual assessment is to develop students' skills in applying relevant rnarketing analysis tools related to the four P's of Marketing. This will enable students to apply learned marketing theories and concepts to a 'real world' business situation within a safe learning environment.

Based on your selection of a product in Assessrnent 1, you are required to conduct the four P's analysis. In your analysis you will need to address the following points:

Product Decisions (with reference to content in weeks 2 & 5):

Identify and explain the type of consumer product that you have selected.
Identify the selected product's three layers. You may use a diagram or chart.
Using the Product Life Cycle Model, identify the current stage of your selected product. Provide reasons for your answer.

Price Decisions (with reference to content covered in week 7):

Determine the pricing point of the selected product, and identify the pricing strategy used by the company that is selling this product.
Which special pricing tactics does the company use to sell the selected product? Provide reasons for your answer.

Place Decisions (with reference to content covered in week 8):

Which channel of distribution does the company use to distribute the selected product? Provide reasons for your answer.
Which level of distribution intensity does the company use to distribute the selected product? Provide reasons for your answer.

Promotion Decisions (with reference to content covered in week 9):

Which communication strategy does the company use to advertise the selected product? Provide examples and reasons for your answer.
Which type of advertising does the cornpany use to advertise the selected product? Provide examples and reasons for your answer.

Answer

Marketing Principles

Analysis of product decisions

The product involves either a tangible or intangible good s and services consecutively which usually meet a particular need and preferences of a consumer. All products follow a product lifecycle; in this case, the identified product is the Chef coat. As a marketer, I have to understand the benefits offered by my chosen product and all its features. Clearly, the chef coat will raise the current standards in the workplace designed properly to raise confidence level in my profession (Kotler et al,2013. P.13). Therefore, the unique sales volume proposition to the potential customers of the product should be identified and understood clearly.
Product variables include product design, product range, labeling, packaging, quality, branding, guarantors and after sales services done while selling the entire product. The complete combination of these sub-elements increases the product success to meet its needs and demand in the potential market. Product strategy also covers the decisions involving a product level of modification, broke down into simpler parts and the entire removal of non-profitable products

The product lifecycle

Prospective customers buy millions of products every year. Thus Most companies have understood the distinct product lifecycle stages selling at a limited lifespan. Companies invest highly in new product development to make sure that the business opportunities grow widely.
Introduction stage. This is an expensive stage for a company as it involves launching a new product to reach all target groups in the market. There exists a small size of the market for the goods meaning that sales volume is minimal even though it will eventually increase over time. (Kotler et al,2013. P.13). The marketing decision needed to launch this chef coat product will involve high costs of research and development of the product, especially in a competitive sector.
Growth stage. This stage is comprised of large growth in sales and profit margins since the company begins to benefit from massive economies of scale. This makes it focus more on investing in promotional services ensure optimal potential in this growth stage.
Maturity stage. During this stage, the product is developed with a purpose of maintaining the market share it controls. Companies require focussing on product modifications and improvements in the process to counter competition
Decline stage. The market for a product shrinks and becomes saturated. This is because the consumers are switching to a different type of product as they have already purchased the initial product.
In this case, the Chef coat product is at introduction stage of the product lifecycle.

Price Decisions

Analysis of Price decisions

Price amount covers the expected total amount that the consumer of the product is expected to pay. It Is clear that how a certain good is priced has direct implications for the actual price that it sells (Wasan &Tripathi 2014, P.127). Conversely, the price of a product is affected by various factors that involve distribution plans, competitors pricing ability dealing with similar goods and the value chain costs incurred. Several other factors include target groups, price elasticity during product demand, production costs, competition and government and societal responsibilities.Therefore,price is a very important approach in the marketing mix.
Price is usually the total value of a particular good as expressed in amounts of monetary terms that company acquires in exchange for the goods that benefit all the end users. The sub elements of price include price levels,policies,discounting rates, deliverables and credit terms required on products, Thus marketers should take in to account pricing with good care.

Price strategies and tactics

Price strategies Strategies
This involves a way of looking at a competitive price of goods and services. They are designed to help the firm on new products introduced in the market such as the Chef coat.
Psychology pricing. This technique is used by marketers to encourage customers to respond to emotional levels. Its aimed at raising the demand by ensuring an illusion of increased value for the customer
Economy pricing. Its purpose is to attract price-conscious end-users minimizing the costs incurred with marketing and promotion services. Thus customers can buy the product they need without challenges.
Pricing for marketing penetration. These strategies attract potential customers by setting lower prices on products. Also, premium pricing involves decisions made by companies to offer costs that are higher than their competitors. Chef coat is unique product thus this policy will be ideal for the growth and introduction stages of the products life cycle.
Price tactics
Price skimming. This sets high rates during the introductory stages of a product then the company lowers price relatively as other similar goods become rivals in the market. This strategy is designed to allow allows the company to maximize profits before lowering the prices in order to attract more consumers.
Discounting. Offering the Chef coat at an especially lower price is important as will help the company to attract more customers and maximizes profits.

Analysis of place decision.

Basically, the place is defined as the distribution channel which is used by the producers to transport the products to their consumers within the market. This means that the product produced highly affects what the company or organization distributes to the market (Tapp and Spotswood, 2013 p.67). For instance, in selling our chef coat if we are the supply of the product then it means our customer is the end chain in the market. This means that the chef coat is supplied to the customers directly. Different business has different distribution channels to meet their customers.
There are different types of distribution within the marketplace.

1.The zero channel of distribution. This occurs in situations where there is a direct supply of the products and goods from the producers within the market and the consumers. On selling our chef coat we can decide to supply the coats directly from the production level to the consumer level.

2.The one stage channel of distribution. Here the middlemen operate in between. That is the retailer operates between the manufacturer and the consumer in the market (Gordon, 2012 p.45). This means on dealing with our chef coat it shows that after the manufacturer designs the coat then the retailer later buys and at the end consumer reaches the product through the retailer. This mode is always appropriate in business that deals with the durable products and deals with large quantities.

3.Two-stage channel. The model starts all the way from the manufactures to the wholesalers than the retailer and lastly the consumers. The retailers and wholesalers are the middlemen within the market.

4.Three stage channel of distribution within the market. When there are many wholesalers within the market and they are scattered, the manufacturer will prefer to use the agents who act as the link between the manufacturer and the wholesalers (Gordon, 2012 p.75). The process starts from manufacturers to the agents to the wholesalers to the retailers and lastly to the consumers within the market.

Factors affecting distribution channel in the market.

1.The nature of the market. In order to sale more chef coats in the market, we need to consider how the market can be reached from our area of work. Direct mode of distribution will be appropriate where we will have a large market around the area of operation. Also where we will have a large number of buyers who are scattered all over the business will use the middlemen so as to meet their consumers.

2.The nature of the product. In most of the businesses, the nature of the market will affect the choice of distribution channel. The supply of chef coat will not be same as in the supply of perishable products. The supply of our coat will prefer any distribution channel (Gordon, 2012 p.127). The direct channel will be appropriate for the market around the business and use of the middlemen that is agents and the retailers will appropriate for market scattered away from our business.

Analysis of promotion decision.

In business, promotion is always described as the process of informing and also persuading the available consumers in the market to buy the product (Khan, 2014 p.57). The sellers will pass different information that will target to convince consumers to purchase various products. On selling, for example, our chef coat we will be in a position to convince customers of our product describing how it is unique form the rest in the market.

Tools used in promotion

1.Advertising; It forms the most tool used in the market for informing customers on the availability of the product in the market (Khan ,2014 p.90). It describes features such as the quality of the product, the features of the product and its availability. Our chef coats will reach customers in the market through the advertisement whereby we will advertise on key features about the product thus convincing the customers to buy.

2.Publicity. Focuses on communicating about a product so as increase the attitude of the customers to buy a product. It is usually non-paid model. It's mostly found in articles whereby they describe on their products in the market .

3.Personal selling. Refers to the direct supply of the goods and services to the consumers within the market. For example, on selling our products that is the chef coat we can decide to go door to a door selling the products to the customers. The salesperson will persuade customers to buy the products.

4.The sales promotion. It is the short-term model to buy and come up with the new goods within the market (Nezakati et al,2011 p.150). It is achieved through the trade shows, use of the discounts, and also gifts. It is always practiced at the retail levels within the market.

In conclusion, the use of 4ps helps the business to check on the price of the product, the description of the product, the place analysis, and the promotion analysis decision within the market.

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