Marketing Principles And Techniques

TASK 1: What is Marketing

1.1. Diverse Marketing Activities

Marketing is the process of creating, exchanging, delivering and offering goods and services which are value for buyers, consumers, clients, partners and society. The basic purpose of marketing is to identify the needs and wants of the public. Marketing department is the key aspect of an organisation and the potential motive of marketing department is to analysing the changing needs and demands of the market in respect to making appropriate transformation in their offerings to satisfy its target audiences (French and Russell-Bennett, 2015). All the aspects of marketing are recognised and aimed towards reaching and providing goods and services as per customers needs or preferences. There are few essential activities of marketing, that are associated as below:

Promotions:

One of the most prominent activities which are associated with marketing are promotions. The main agenda of this activity is to effectively make customers aware about the brand. Yum Chocolate Shop could effectively use marketing as an effective tool for promotions. It would help the company to gain a competitive advantage over other companies and effectively improve its position in the market.

MarketResearch:

Another marketing activity is to effectively research the marketplace. It requires the firm to conduct an inside out analysis of the business environment to gain a better understanding of customer's needs, wants and preferences and even expectations from the company.

1.2. Market Segmentation

Apart from this, to effectively apply its marketing strategy to the most appropriate customers, it is imperative that the firm undergoes market segmentation (Graber and et. al., 2016). It is a step of dividing the market into various groups based on different characteristics that are described below:

• Demographic:This type of segmentation divides the marketplace on the basis of certain demographical factors. Examples of this segment could be division on the base of gender, income, age, nationality, etc. With varied range of products, Yum Chocolate Shop could effectively approach wider group of customers using this segmentation.
• Behavioural:It divides the customers on the basis of their behavioural characteristics, for instance, attitudes, nature, decision-making pattern, etc. which is necessary for Yum Chocolate Shop to determine
• Geographical:As the name suggest, this divides the buyers on the basis of their geographical location which could provide the strategy to the company to place its product.
• Psychographic:This emphasises on dividing consumers with their opinions and lifestyle. Yum Chocolate Shop could use this segmentation factor to opt for customers who tend to live a healthy lifestyle and have strong opinion in favour of companies that could satisfy this interest of these customers.

1.3. Marketing Mix

This refers to an effective blend of all the marketing elements which are essential for a company to develop effective marketing strategies for their products (Lee and Kotler, 2015). These elements are described below:

• Product:This refers to the offering which is provided by the company to its customers. As for Yum Chocolate Shop, the firm provides effective chocolate products, such as chocolate bars, crackers. Currently, the firm has an effective offering by the name of Yum Bar, which is a gluten-free chocolate.
• Price:One of the most important element of marketing mix, price is the amount charged by a company for its offerings to the customers. The price depends heavily on the quality of their product. In the case for Yum bar, the company provides effective quality product which is tasty as well as healthy for its customers. Thus, the company is adopting premium pricing strategy.
• Place:It consists of the distribution channels through which a firm positions its products to be delivered to the customers (Jim Burtles and CMLJ, 2015). For Yum Bar, the company would adopt offline channels, i.e., its physical stores at prime locations of London. In addition, the company would also adopt various online channels such company's website to make its product available to the customers.
• Promotion:This element consists with the promotion of the offerings. For Yum Bar, the company is opting various online portals like Facebook, Twitter and YouTube to promote its product to a wide range of customers.

TASK 2: Market Research

2.1. Aims of research and market analysis

Market research is a method which is undertaken by the companies to gather an inside view of the market and customer trends which allow them to produce effective products which are in accordance with customer preferences. It is effective for a firm to analyse the marketplace which is essential for the company and its products like Yum Bar. It is very important that the company effectively adopt various research methods and market analysis tool to get a 360ºview of the market.

• Market Research Aim:The main agenda of market research is to identify potential customers, changes happening in their preferences and new offerings they want Yum Chocolate Shop to produce.
• Market Analysis Aim:To find out new and effective market prospectus for Yum Chocolate Shop and aspects of growth and enhancements in current target market.

2.2. Market Research Methods

There are various market research methods that could be adopted by Yum Chocolate Shop to gather information from its existing as well as potential customers. These methods are described below:

Primary Research:

This type of research is effectively carried out by the researcher for the first time and for a specific purpose (French and Gordon, 2015). The agenda of this research is to gather first-hand information to satisfy a certain prospective in relation with any issue in relation with the company. Yum Chocolate Shop could effectively use this method in case the firm wants to gather specific information about its products, processes and customer expectations. The firm could opt various methods of primary research which are described below:

• Questionnaires:These are documents which are given to certain respondents pre-decided by the company and are concentrated towards receiving objective responses that could allow the company to gain responses on a various selected topics from wide number of customers in a single manner (Morden, 2016). The company could use this method to gain feedbacks regarding its product quality and could also acquire customer preferences regarding any new product or process introduced by the company.
• Interviews:These are face-to-face conversations which selected personnels from the company undergoes with various individuals. These could aid the firm in gaining Immediate and accurate responses and chances of fake response is limited. Yum Chocolate Shop could adopt this method to gain a keen insight of the perception of customers towards the company. It could also be used to acquire new and skilled employees.

Secondary Research:

This kind of research could be conducted by the company on topics and issues that are already been explored by other researchers. The personnels adopting this method explore secondary resources and use pre-used information for to satisfy their research agenda. There are various techniques used under this research (Jacobson, McDuff and Monroe, 2015). These are mentioned below:

• Internet:The hub of information in recent times, internet could be used effectively to conduct secondary research. There are various websites that could provide effective information for the company on any research topic. Yum Chocolate Shop could use this technique for gather data about market trends and ways which could retain and attract customers.
• Libraries:These entities have a wide variety of books on various subjects written by prominent authors. These also provides journals written by managers and recognised entrepreneurs. The firm could use this source to gather information about relevant business processes that could drive the firm towards success.

2.3. Market Analysis Tools

There are various tools of market analysis that could be opted by Yum Chocolate shop to effectively identify their internal strengths and weaknesses and external opportunities and threats (Amine, 2015). These methods are discussed below:

SWOT Analysis:

This framework is adopted by companies to identify their competitive strengths in an effective manner by identification of their strengths, weaknesses, opportunities and threats. For Yum Bar, Yum Chocolate Shop could perform SWOT Analysis which is described below:

BASIS	DESCRIPTION
Strengths	·The biggest strength of the company is that it produces quality products for its customers all over the country which enhances its demand. ·The price provided to the customers are quite affordable which increases the intensity in which buyers prefer this company over others.
Weaknesses	·One of the biggest weaknesses of the firm is the lack of its distribution channels. Even through its demand is increasing, the firm is yet to explore more ways for promoting and placing its products. ·The production facility lacks necessary technology which increases the time, effort and price required for production.
Opportunities	·Customers within the UK are becoming more health conscious which is a great opportunity for Yum Bar to place itself effectively in the market. ·Technological Advancements too could be analysed as an opportunity for Yum Chocolate Shop to employ effective technique and equipments to produce Yum Bar effectively.
Threats	·There are already many companies in this sector like Cadbury, Nestle, etc. which already have impressive market share (Lagarde, 2015). ·Another threat for the firm is the changing preferences of customers which is quite unpredictable in the long-run.

PESTLE Analysis:

These are external environment pointers that effectively influence the operations of organisations and are required to be thoroughly analysed to develop effective strategies that help the firm accomplish its business objectives (Ferreira, Coventry and Lenzini, 2015). PESTLE analysis for Yum Bar is mentioned below:

• Political:This factor is related with Political stability of the country which influences a company's operations. For Yum Chocolate Shop, after Brexit, the country is subjected to various changes in its regulations and still might experience some in the future that could be a threat for the company and its Yum Bar.
• Economical:It reflects how the overall economic factors supports organisation and their offerings. Currently, with reduction in the value of Pound, the sales of Yum Chocolate Shop has been affected. However, with closure of various MNC's, the firm could hire skilled talent at lower wages which could enhance its production effectiveness.
• Social:All the social trends and customer preferences which could influence an organisation and its products are covered in this factor. Recently, the trend among millennials is shifting their interests towards adopting a healthy life-cycle. In addition, in this customer oriented market, people want the most appropriate value of their money. All such factors could be a major opportunity for the company and its Yum Bar.
• Technological:With such progressive technology, the firm could opt for various methods such as Automation and Artificial Intelligence to produce as well as deliver its Yum Bar to the customers.
• Legal:The company has to comply with various legal standards set for production, distribution and employment (Kubacki and et. al., 2015). For instance, Yum Chocolate Shop must comply with Minimum Wages Act as well as Equality Act to successfully gain support of the legal system and government.
• Environmental:With ongoing environmental concerns around the world, the company must ensure to employ effective waste management technique and use of equipments which ensure minimisation of pollution in production of Yum Bar.

TASK 3- E-Marketing

4.1. Methods used for E-marketing products and Service

E-Marketing is a modern-day phenomena which companies undertake to effectively market their brand as well as their offerings using latest and modern-day communication methods, internet, for instance. There are various methods that could be opted by Yum Chocolate Shop to market Yum Bar which are discussed below:

• Blogging:In this internet inspired era, there are various organisation who write blogs on internet websites giving information about multiple topics to readers. Yum Chocolate Shop could use this as a strategy to write blogs about the ongoing health concern in the country and how its product, Yum Bar could help people overcome with this aspect.
• Social Media:Most of the people in today's time have various social media accounts on which they effectively share information using videos, images and written materials. Yum Chocolate Shop could use portals like Facebook, YouTube and Twitter to market Yum Bar to large number of customers in one go.

4.2. How companies can manage their online image

It is very crucial for an organisation to establish effective management of its online image as it tend to influence customers to a great extent. Firms could achieve so by updating information about themselves regularly and come up with new ways of presenting their products and services to the community by using animations, compelling videos, real-time production, VR, etc.

If this management is poor, for instance, Nike, which has recently launched a very controversial advertisements resulting in withdrawal of many customers from the firm and its products. Such is the impact of social media if the management of online image is poor. On the other hand, companies like Adidas and Reebok have always presented compelling videos that were effective touchpoints for customers to get attracted to buy companies' offerings. Thus, it is imperative that companies effectively manage their image by identifying the needs of customers, present their product to gain maximum attention as well as which build an emotional connection with the customers.

TASK 4

3.1. Market Analysis Technique to research Target Market

There are various techniques by which Yum Chocolate House could find effective Target Market for Yum Bar. One such technique is Segmentation, Targeting and Positioning (STP) which is discussed below:

Segmentation:

As discussed above, the market segmentation for Yum Bar would depend on various aspects. The firm would be opting Confectionery Segment to effectively identify customer groups. Aspects for segmentation are mentioned below:

• Demographic:For Yum Bar, the firm could opt for general population, preferably millennials, aged 15-50, with income more than £5000.
• Behavioural:Yum Chocolate Shop could divide customers habitual of eating chocolates having positive attitudes towards fitness.
• Geographical:To maximise its effectiveness of marketing Yum Bar, the firm could opt for customers living in the urban areas of the UK.
• Psychographic:For Yum Bar, the company divide buyers who tend to live a healthy lifestyle and have strong opinion in favour firms producing healthy products

Targetting:

After segmentation, the firm comes to target specific customers from segments that form their target market (Tapp and Rundle-Thiele, 2016). For Yum Bar, the organisation would target customers who live in the urban areas of the UK, aged 15-50, habitual of eating chocolates and tend to live a healthy lifestyle.

Positioning:

This step is concerned with how the company would position Yum Bar so that it effectively reaches the target market and spread accurate message. To achieve this, the firm would position this product as something which could effectively be consumed anytime and even its regular use would not harm its consumers. In addition, the firm is willing to adopt honest pricing strategy which would enhance the effectiveness of Yum Bar as healthier products are generally costly (French, 2017).

3.2. Interpretation of Findings of Market Research and Market Analysis

Secondary Research:

This research was carried out using various methods like internet and libraries. The research was carried out about the health conditions in the UK. As per HigginsErica Doyle (2019), almost half of the UK could be obese by 2030 seeing its current patterns and eating habits. Study also reveals that the obesity rate was almost 30% in the country in 2018.

By the views of Robinson Nicholas (2015),confectionery sales within the country would increase by almost 9% percent by 2019. This is an opportunity for Yum Chocolate Shop to offer healthy products like Yum bar to the customers.

Primary Research:

This research would carried out by the company on various objectives by number of respondents which are mentioned below:

• Research Aim:

To market Yum Bar within the UK to capture wider market share by the application of modern marketing tools

• ResearchObjectives:
  • To identify the awareness of Yum Bar within the UK market
  • To determine the most appropriate modern marketing tool for the firm to enhance awareness of its product.
  • To determine the impact of modern marketing tools on developing market share of Yum Chocolate Shop.
• TargetSample:

To effectively conduct the research without much expense, non-target sampling has been used to effectively

• TargetRespondents:

To effectively satisfy the research purpose, 20 respondents have been approached who have a keen interest in trying new confectioneries.

QUESTIONNAIRE Name: Age: Contact no.: Email id: Q1) Are you aware about the company Yum Chocolate Shop? ·Yes ·No Q2) Are you aware about its product called “Yum Bar” ? ·Yes ·No Q3) What, according to you, is the most appropriate modern marketing tool to promote Yum Bar? ·Social Media ·E-mail Marketing ·Blogging Q4) What extent does modern marketing tools applied to market Yum Bar would help the company to enhance its market share? ·High ·Medium ·Low

Analysis of the questionnaire

Q1) Are you aware about the company Yum Chocolate Shop?	Frequency
·Yes	13
·No	7

Interpretation:From the above information, it could be interpreted that 13 out of 20 respondents are aware about the company and yet there are 7 respondents who are not.

Q2) Are you aware about its product called “Yum Bar” ?	Frequency
·Yes	8
·No	12

Interpretation:From the above graph, it is interpreted that 12 out of 20 respondents are still unaware of the company' product Yum Bar. 8 respondents, however, are aware about this product of the company.

Q3) What, according to you, is the most appropriate modern marketing tool to promote Yum Bar?	Frequency
·Social Media	14
·E-Mail Marketing	2
·Blogging	4

 

Interpretation:It is thus interpreted from the above information that majority of respondents feel that social media is the most appropriate tool for the firm to promote Yum Bar. Whereas 4 respondents opt blogging and 2 choose E-mail Marketing.

 

Q4) What extent does modern marketing tools applied to market Yum Bar would help the company to enhance its market share?	Frequency
·High	13
·Medium	5
·Low	2

 

Interpretation:From the above information, it is interpreted that majority of respondents think that marketing Yum Bar using modern media marketing tool will have a high impact on the market share of Yum Chocolate House. On the other hand 5 respondents feel that it would have a medium impact on its market share. There are 2 respondents who feel this impact to be low.

3.3. Recommendation

It is thus recommended that Yum Chocolate Shop must use modern marketing tool to market its new products like Yum Bar which would enhance its market share effectively. The firm could opt for social media portals like Facebook and YouTube to enhance the awareness about its product. Moreover, the firm must continue with its production of healthy chocolates to satisfy the health concerns of the UK which would allow the company to attract more customers and hence, capture a larger market share.

Conclusion

Thus, it is concluded that marketing principles and techniques are essential to enhance market share of a company. Marketing segmentation and marketing mix effectively help a firm to develop strategies regarding its offerings. E-marketing could help the firm in building an effective and positive online image. Lastly, market research could help a firm in identifying customers' responses that aid a company to achieve its objectives.

References

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