Describe how marketing techniques are used to market products in two organisations [IE] A marketing strategy is an overall marketing plan designed to meet the needs and requirements of customers. The plan should be based on clear objectives. Marketing techniques are the tools used by a business’s marketing department. The marketing department will set out to research and identify the most appropriate techniques to use and develop on in order to make profits. These marketing techniques include public relations, trade and consumer promotions, point-of-sale materials, editorial, publicity and sales literature.
Market research helps the organisation to identify the most appropriate marketing mix. The mix should consist of the right product, sold at the right price, in the right place, and using the most suitable promotional techniques. An important marketing technique mainly used is branding. Branding is the entire process involved in creating a unique name and image for a product in the consumer’s minds, and almost act’s as a business’s ‘identity’ as it creates an image for the business. A brand can be a powerful selling tool and can help achieve marketing objectives such as gaining market leadership and raising customer awareness.
According to the chartered institute of marketing, the best brands create a special relationship with their customers, based on intangible qualities that evoke strong emotional responses. These might consist of a logo, a general look and feel, a tone of voice and the way the company interacts with its customers. Apple Inc. Apple started in 1976 as a computer company. In the last decade Apple has expanded into a very detailed company that specializes in much more than just computers. In 2001, Apple broke the barrier and developed the company with the iPod, and it then eventually became the dominant market leader in music players.
As well, Apple joined the phone industry in 2007 with the iPhone, which has also been widely successful, and driven a lot of other businesses such as Windows to develop more products similar to Apple. Looking into growth strategy, Apple has developed a perfect balance between growth and strategic constancy and focus. Apple has maintained a consistent business identity and brand. They never let their growth undermine their strategy. They understand what they do well, what makes them money, and what they are passionate about. Apple doesn’t watch their competition and ask if hey should be developing a new line of high tech jackets too. They ask, “How can we do what we do better? ” Comparing this to Ansoff’s Matrix, Apple are found in between Market Penetration and Product Development, as they aim their products towards their existing market and base their products around the same technology, but they are always developing new versions of their products to keep generating profit by offering the latest updated technology. Apple’s branding is simple and clean cut. There logo is a modern designed graphic of an apple shape, with a bite take out of it.
The logo is believed to represent the “Tree of Knowledge’s fruit” and “Sir Isaac Newton’s discover of gravity” imagery deriving from the original 1976 logo by Ronald Wayne. The bite in the apple was to simply make sure that the graphic did not look similar to a cherry and confuse consumers. The companies branding also fits in and represents Apple’s products. They are very sleek, simple and beautiful. So the so called ‘theme’ of their branding suites the products very well. This is also important for influencing consumers by building up the brand to be well recognised.
Apple have stuck with their branding all through their development and it has taken a role into how successful they are. Branding also leads into relationship marketing. Relationship marketing is a form of marketing developed from direct response marketing campaigns which emphasizes customer retention and satisfaction, rather than a main focus on sales transactions. Apple has five company and product characteristics that ensure loyal customers. These five traits are iPod and iTunes, iPhone and the App Store, Mac computers and the Mac OS.
Apple is now a 35 year old company, and since its founding is has strategically chosen to limit consumer choice. This would of thought to be debated, because many Apple buyers don’t view Apple as being limited in possibility or product options. However, as soon as consumers start buying stuff from Apple, they find it difficult to move to products made by someone else, as they have evolved their use of technology around apple software and products. Relationship marketing is very different compared to transactional marketing.
Essentially, transactional marketing focuses on getting the customer to buy a certain product and walk away, whilst relationship marketing sees the sale as the first step in the building of a relationship (which is what apple thrives to do). Tesco Tesco started life in 1919 when a man named Jack Cohen started selling surplus groceries from a stall in the East End of London. Mr Cohen made a profit of ? 1 from sales of ? 4 on his first day. The Tesco brand first appeared five years later in 1924 when he bought a shipment of tea from a Mr T. E Stockwell.
The initials and letters were combined to form Tes-co and in 1929 Mr Cohen opened the flagship Tesco store in Burnt Oak, North London. The brand continued its rise in the 1930s when Mr Cohen built a headquarters and warehouse in North London, and in 1932 Tesco became a private limited company. In 1947 Tesco Stores (Holdings) Ltd floated on the stock exchange with a share price of 25p. Looking into growth strategy, Tesco’s has developed a deep-rooted and ‘unswerving’ strategy for growth, which has allowed them to develop a strong growth within the core of UK business and develop growth into fresh markets.
Tesco’s quotes: Our goal ‘to grow the UK core’ is as relevant today as it was in 1997. The UK is the largest business in the Group and a key driver of sales and profit. This year, we are making a ? 1 billion commitment to improve the shopping trip, driving a strong pace of improvement in the things that matter for customers which will involve significant revenue and capital investment. These changes will reinvigorate the shopping trip for customers, and consequently deliver improved performance for shareholders.
Looking at this, it shows that Tesco’s growth strategy is to keep on developing the shopper’s experience, which they believe is an important factor when persuading the consumers to buy more products to make a rise in Tesco’s products. A recent development in Tesco’s growth strategy would be their purchase of a restaurant chain formally known as ‘Giraffe’. Giraffe is a leading family-friendly restaurant that offers a wide range of fresh, seasonal, quality food, comfortable interiors and friendly staff. Its menu covers a range of global dishes and appetizing options for breakfast, lunch and dinner.
This forms as part of Tesco’s strategy to develop the space in some of its larger stores and create even more influential retail destinations where customers can meet, eat and drink, as well as shop. The first Giraffe restaurant to open next to a Tesco store will be near London. Comparing this to Ansoff’s Matrix, Tesco’s are found in Product Development, as they aim their products towards their existing market and base their new areas of retail around product development and improving the shopper experience.
Tesco has various brands within the business which create a variety for its consumers, this includes: These brands again come into Tesco’s developing their products to improve the consumers experience and to make the products look more appealing to different target audiences that would shop at Tesco’s. Tesco’s branding also leads into relationship marketing. Relationship marketing is a form of marketing developed from direct response marketing campaigns which emphasizes customer retention and satisfaction, rather than a main focus on sales transactions.
With all of Tesco’s range’s designed to suite different customer needs, they are creating a wider target market and to a conclusion gaining more consumers. Relationship marketing is very different compared to transactional marketing. Essentially, transactional marketing focuses on getting the customer to buy a certain product and walk away, whilst relationship marketing sees the sale as the first step in the building of a relationship (which is what Tesco’s thrives to do).