MBS537 Strategic Marketing Management

Marketing environment

Marketing environment is the combination of both internal and external factors which affect the stability of a business and also the ability to meets its customer’s needs (Syaifuddin, 2016). Some of these internal factors include customers, employees, shareholders, and stakeholders. These are the main determinant of the business success as well as brand image. Woolworth is the leading retailer of grocery in Australia dealing with vegetables, fruits, and also packed products. It has also involved in selling magazines and stationery items. Woolworth has shareholders who are innovative and this has assisted in providing quality products hence increasing in its market share (Chandra, 2013). It also has a group of employees who are competent and able to give information that customers need to know about their products.

On the other hand, the external marketing environment which include social, technological, political and legal also has impacts on the brand image and stability a business (Syaifuddin, 2016). For example, legal factors restrict a company from offering some products. For the Woolworth, the government has permitted it to provide a wide variety of goods as long as it is fit for human consumption. This has enabled the company to offer a wide variety of choices in terms of brands hence, it doesn’t leave customers dissatisfied when it comes to choice. Also, legal law which requires every business to put into consideration health issues of its customers has enabled Woolworth to provide quality products. Woolworth has also adapted in internet selling and advertising which has helped in increasing sales.

Segmentation strategy

 One of the marketing strategy adopted by Woolworth in order to meet its goals of sales increase and to be the best in the market is segmentation (Sinee, 2012). This is where it has broken down into smaller units which are manageable. These segments have similar wants, characteristics or demands and are precisely designed to meet customers’ needs in that segment. For example, if Woolworth wants to open a shop in a region, they first look at what most people in that place prefer most in terms of their products rather than looking all customers in general. This has helped them concentrate on the particular needs of customers in different segments hence meetings the needs of all their customers.

Also for example, when planning to start a shop of stationery items, they tend to look at the population of students in that particular area because they are the most customers. Consumer behavior is also another variable in segmentation strategy Woolworth look at when coming up with those segments (Mohamad, 2015). This regards to buying power and consumers behavior towards certain products. It also involves looking at how customers in that particular region spend their money. This strategy has helped Woolworth in making the right decisions when coming up with choices on where to locate their business. Consumer psychographic is also another thing to consider when targeting customers. This includes lifestyle and social class of that particular region. It is during promotions when one gets to know how products get an expression of customer’s social class (Gitana & Valentina, 2010).

Targeting strategy

Targeting involves selecting a particular segment in which to advertise your products. In this case, Woolworth has targeted everybody everywhere because its aim is to meet a wide variety of needs of the people. This has enabled it to maximize on its sales and also wide exposure of its products. Woolworth targets everyone because it deals with groceries like fruits and vegetables which are commonly used (Karie, 2017). Targeting a large group of customers helps a company increase in its markets share as well as sales. For the products which are not commonly used by all people like stationary, Woolworth has put strategies on how they should be reaching children. This has been attained through the use of communication through televisions which most children watch. They also visit their institutions to explain in person about their products and how they are different from those of the competitors. This strategy has helped Woolworth sales team customize their information to the targeted customers in a focused way (Rajeev, 2012).

Target customer

Woolworth gives its customers the correct information about their products and this has led to an increase in purchasing power. This has also made their brand image to be the best (Enda, 2012). Understanding the behaviors of the target audience has enabled Woolworth to drive their engagement into improving its products hence improving its quality. This is because they also get to know the problems the customers are facing in terms of the products. Psychological and demographic factors have also assisted them in identifying the character and how employees react to particular products. Customer behaviors guide a company in knowing whether it is meeting their needs.

Positioning strategy

Positioning strategy involves processes a company puts in place to market its products to its customers. Its objective is to occupy a clear, unique and advantageous position in the minds of the customers. One of the positioning strategies which make Woolworth products to attract more customers is by associating them with certain beneficial value (Jeremiah & Olutayo, 2013). The sales teams organize promotions to position their products or do it through social media. Woolworth has also provided a channel of communication where customers report their experiences and this has helped them position their products in a way which suits them.

Another thing which has enabled Woolworth thrill in the market is that positioning the prices of its products slightly lower than those of competitors (Amber, 2016). Positioning its products with high quality and also convincing their customers that their products are better than those of competitors is also another strategy Woolworth uses. Moreover, Woolworth positions its products with more useful use from those of the opponents and this has assisted in retaining and attracting more customers. Woolworth has a clear understanding of its customer needs and this has helped the company to position its products in a way which attracts more customers.

Marketing tactics

Marketing tactics are actions a company puts in place to promote its products to the targeted audience. For Woolworth, it has applied both the primary and secondary tactics to position its products to the customers (Fanbin & Xiaojing, 2012). Primary tactics are where the sales team engages in physical contact with the customers and convince them about their brand. Woolworth has sales team which visits the customers and convince them to buy their products and also tell them how they are more useful than those of their competitors. During this time, they also engage the customers in decision making and ask them to give their opinions on what they think should be done in order to get fully satisfied. Through this tactics, Woolworth has managed to offer quality products which meet its customer’s expectations.

For secondary tactics, these are aimed at giving information or education to the targeted audience in order to make them buy their products (Karie, 2017). For Woolworth, it has engaged in various tactics to position its products in order to increase sales. Some of these include the use of internet whereby it has enabled them reach many customers across the world. Since everyone nowadays is addicted to the internet, Woolworth use platforms like Facebook and Twitter in order to position its products to its customers. They also include prices and the usefulness of their products and how they are best from those of the competitors (Rajeev, 2012). They also use electronic brochures where they provide information about their products, vision, and mission.  Woolworth also use seminars to position their products. This is where the sales team organize meetings with the targeted customers and explain to them about their products. During this seminars, they engage customers in decision making and ask their opinions on what they think should be done for their needs to be fully met. This has enabled Woolworth to improve on its quality hence meeting its customer need.

The company has also adopted the use of banners to create awareness concerning its products (Osiri, 2013). These aims at luring the customers to buy your products. Once a person sees the banner on the internet or in a billboard he or she would be tempted to know more about the said products. Choosing correct tactics helps in better positioning of the products. When choosing tactics, it is good to choose ones which are inexpensive and more effective.

Relationship strategy

Relationship strategy focuses on creating a long term value of lasting relation between the brand and customers. Customer’s relationship with brands is based on what one gets in form of quality and what he or she gives out in terms of price (Chandra, 2013). Due to the continued provision of quality products at a competitive price to its customers, Woolworth has been able to create a good relationship with its customers. Also, through innovation, it has helped in providing quality products hence retaining its customers. Also giving customers full access to information about the products helps in winning their trust hence strengthening the relationship.

In addition, the relation between brand and customers is not only determined by continued provision of quality good but also the benefits which customers get from using their products (Sinee, 2012). The features that the products have helps in meeting the customer’s needs and wants. Through innovation, Woolworth has come up with the best features for its products. The company does not only provide quality products but also beneficial to its customers.

References

Amber, B. (2016). Social Media Strategy: Marketing and Advertising in the Consumer Revolution. Journal of Advertising Education, 20(2), 23-30

Chandra, P. P. (2013). Green Marketing: A Strategy for Promoting Eco-Friendly Products. ASBM Journal of Management, 6(1), 45-50

Enda, M. (2012). An International Social Marketing Strategy for a Non-Profit Organization: Determining the Path for Continued Success?  Journal of Case Studies, 30(1), 34-38

Fanbin, Z & Xiaojing, Y. (2012).  Marketing Strategy of Pay Channels. Asian Social Science, 8(15), 34-38

Gitana, D & Valentina, P. (2010).  Marketing Strategy Process: Quantitative Analysis of the Customers' satisfaction/Marketingo Strategijos Procesas: Vartotoju Pasitenkinimo Kiekybine Analize.  Business: Theory and Practice, 11(4), 34-45

Jeremiah, I & Olutayo, O. (2013). A Three-Component Definition of Strategic Marketing. International Journal of Marketing Studies, 5(1), 56-60

Karie, H. (2017). Advertising Strategy: A 360 Degree Brand Approach.  Journal of Advertising Education, 21(2), 56-70

Mohamad, D. (2015). The Role of Customer Satisfaction in Mediating Marketing Communication Effect on Customer Loyalty.  Researchers World, 6(4), 90-98

Osiri, J.K. (2013). Entrepreneurial Marketing: Activating the Four P's of Marketing Strategy in Entrepreneurship. Entrepreneurial Executive, 67-70

Rajeev, V. (2012). Marketing Accountability: How to Measure Marketing Effectiveness. South Asian Journal of Management, 19(3), 34-45

Sinee, S. (2012).  Marketing Strategy of Imported Beers before Liquor Liberalization.  International Journal of Marketing Studies, 4(3), 23-28

Syaifuddin, A. M. (2016).  Analysis of Macro and Micro Environment on the Marketing Strategy Formulation and the Influence to the Competitive Advantage (Case Study). Academy of Strategic Management Journal, 45-50