Discuss about the Essentials of Marketing Cengage Learning.
The marketing strategy of any company is developed around the needs, wants and the demands of the customers. These three factors are very crucial for the marketing strategy of any company and assist an organization in creating differentiation from their counterparts. The product of an organization can be differentiated on the basis whether it satisfies the need of the customer, want of the customer or demand of the customer. In marketing, the customer need can be defined as the basic requirement of the human beings such as food, clothing and shelter. These are the basic amenities of the humans without which the humans cannot survive (Armstrong et al., 2014). In the present times, the education and the healthcare also fall under this category. The products in the need category do not require extensive marketing. Soup Spoon is offering soups, healthy diets and salads. It does not come under the basic amenity of the humans. People buy from the shop as they are conscious about their health, do not have time to cook and want to buy healthy diet. Although the product has high importance in the present busy lifestyle, it is not important for sustenance. Therefore, the product does not come under need category.
The customers themselves buy the products necessary for themselves. However, in the present competitive world, the organizations offering products in the need category are also facing intense competition; therefore, they also require push strategies to promote their products. The food products or the real estate falls under this category (Shiring, Jardine & Mils, 2001).
The wants are personal requirements of the individuals. They are not necessary for the well-being but necessary for that particular individual. Some people prefer to use the product of a particular company which is categorized as their want. The common examples of the product that fall under want category are hospitality products, electronics, consumer durables and hygiene products (Kotler, 2008). It could be critiqued that the products offered by Soup Spoon can come under the want category. Although the soups and salad offered at the restaurant are not necessary for living life, they are essential in leading a healthy life. The company offers product which are the part of the daily routine of the people. Therefore, soup, salads and healthy food products are the want of a large number of people in Singapore.
The demand of the consumers refers to the products which are not necessary the existence but desired by the people. When the consumers are able to meet their desires, it becomes their demand. For instance a person may want to buy BMW car; however, if he does not have finance to buy it, it is his desire. When the people attain the power to buy the product, it becomes their demand (Stokes & Lomax, 2008). The soups and salads are not luxury products; therefore, they cannot come under this category. Moreover, they do not create desire which is important for the demand products.
In the present context, the Soup Spoon is a company offering soups, salads and sandwiches. The company emphasized the use of healthy diets and established outlets near hospitals so that the people wanting healthy diet can easily access them. In the light of the above discussion, it can be stated that the product offering of Soup Spoon comes under the category of the customer want. It does not come under the category because it is not providing the basic human amenities. The customer does not want it necessarily in their daily lives; however, with the changes in the lifestyle, many busy individuals want it. It is the want of the people who focus on healthy living and want healthy food regularly. The company is focusing on addressing the need of the customer for the healthy food. It is also not a luxury product and does not build desire in the mind of customers. Therefore, the product offering of the company falls under the category of customer want.
One of the major elements of the marketing mix is the pricing strategy. The business organizations can adopt a number of pricing strategies while entering a new market. The price can be determined to increase the profitability of the organization or to increase the market share of the company in new market. The pricing strategy is a vital component of the marketing mix. With the pricing strategy, the customers form a perception related to the quality that the company offers in its product offering. In the present competitive marketplace, it is important that the organization should establish their pricing strategy after appropriately studying the pricing methods of the competitors. It will increase the competitive advantage of the organizations in the market. Moreover, in the present times, the customers can also compare the prices of different products easily through online mediums; therefore, it is important that the business organizations determine the prices of their product appropriately (Pride, Hughes & Kapoor, 2009).
The pricing strategy is crucial in the promoting the sales of the product. The business organizations do not use a single price but a pricing structure which reflects the variations in the market. While creating the pricing structure, the company creates a flexible pricing structure which adapts itself with the changing market.
In the geographical pricing, the companies decide to determine the prices of the products according to the location of the customers. The market location plays a critical role in the development of the pricing. With the changes in the geographical location, the currency rate and its value also changes. Moreover, the demand and the perceived use of the product also changes with the location of the market. If the demand of the product is low, the company can adopt a low pricing strategy to maximize the sales of the product. Moreover, in the geographical pricing method, the selling price of the product is determined according to the distance of the customer or the market from the place of production. It is a variable pricing method.
In this strategy, the basic prices of product are adapted according to the cost of shipping and other local variables. In its growth strategy, the company is trying to venture in various foreign locations. The company is trying to identify the markets with same metropolitan city environment as that of Singapore. It includes cities of South Korea and Japan. However, if the company is trying to venture in a new market, it has to determine the prices according to the purchasing power of the customers and the local trend (Lamb, Hair & McDaniel, 2008). The company also has to consider the demand, the cost incurred to the company in setting up the restaurant and the operations cost of the restaurant, in determining the prices of product.
The customer segment pricing is a method of price discrimination. In this strategy, different segments of customers are charged different prices for the same product or service. In this strategy, the companies charge different customer segments multiple prices for the same product or service. One of the most common examples of customer segment pricing is museums wherein different customer segments are charged differently. The senior citizens and students are charged a discount rate in comparison to other people.
The business organization determines the customer segment and the charges imposed upon them according to the product. The companies create segments of their customer base as they realize the fact that every customer is different and marketing efforts will be more effective if they are specific to certain customer base. Different prices are also determined for each customer group according to the purchasing capability of different customer groups.
If the company is targeting specific and small groups, then the customers will find the marketing efforts relevant and buy the actual product. When the organization separate different customer segments, it assists the companies in understanding the preference and need of the customers. The marketing methods also become more personalized and relate to the actual needs of the customers. In the customer segmentation process, major differentiating factors are demographics, geography and behavioral tendencies. In the present context, Soup Spoon is a soup and healthy diet organization. The company can increase its customer base and increase brand awareness by establishing outlets near gyms and hospitals. The company can create a fluctuating pricing structure wherein it make collaborations or associations with gyms, hospitals and offer products at discounted prices. It will not only uplift the image of the organization but also increase the brand awareness and increase the customers of the organization (Kennedy, 2011).
The company can implement promotional pricing strategy, in which the customers are given loyalty bonuses and discounts on major holidays of the country. In this strategy, the company should focus on providing loyalty coupons to enhance the customer loyalty. It can also use other promotional strategies such as offering discounts on special occasions or on Sundays to increase the sales of the product. The company can also establish strategies to increase the product sales by offering group or bulk discounts (Kennedy, 2011).
Shiring, S.B., Jardine, R.W., & Mils, R.J. (2001). Introduction to Catering: Ingredients for Success. Cengage Learning.
Kotler, P. (2008). Principles of Marketing. Pearson Education.
Stokes, D., & Lomax, W. (2008). Marketing: A Brief Introduction. Cengage Learning EMEA.
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of Marketing. Pearson Australia.
Pride, W., Hughes, R., & Kapoor, J. (2009). Business. Cengage Learning.
Lamb, C.W., Hair, J.F., & McDaniel, C. (2008). Essentials of Marketing. Cengage Learning.
Kennedy, D.S. (2011). No B.S. Price Strategy: The Ultimate No Holds Barred Kick Butt Take No Prisoner Guide to Profits, Power, and Prosperity. Entrepreneur Press.
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