The scenario of this report is based on an analysis of marketing activities in the context of ALDI. It will be going to determine how marketing will assist an organisation to develop an effective customer relation.
- Evaluate the procedure and concept of marketing for ALDI.
- Discuss the concept of segmentation, targeting and positioning in the context of ALDI.
- Determine the each and every element of marketing mix in regards to ALDI.
- Analyze the concept of marketing mix for different context.
Marketing is considered as an activity that is used by companies in order to serve to their customers effectively. Firm deliver goods which are best in quality that can provide maximum benefits to consumers and this will assist companies in gaining superior position in market area. Organisation that is taken in this assignment is ALDI which is a retail company. The report will focus on various elements of marketing process is included in this assignment. Evaluation of benefits and cost of a marketing orientation is mentioned (Abdullah and Ismail Ahmad, 2010). Further influence of macro and micro environment in decision making is explained. Therefore, propose segmentation of products in various markets is included in this report. Along with this, behaviour affects of marketing activities in context with different buying situations. Lastly, difference between international marketing and domestic marketing is explained for better understanding.
1.1 Various elements of marketing process
Marketing is a concept that is used in order to know what an individual and group of people wants according to the needs and wants. Further marketing process is explained below so as to understand it in a better manner.
Analysing marketing opportunities: ALDI gives excellent services to its customers because the basically identify the market opportunities by determining the current trends that are present in market area.
Evaluating targeting market: This is the next element through which company can choose targeted public to whom they can sell their products so as to increase their sales and profitability. Thus, ALDI has gone through the entire market in order to get effective results.
Marketing Strategies: This includes vale proposal, targeting, segmentation etc. and this helps a company in making appropriate strategies according to the situation that is present in market area (Allyson Dooley, Jones and Iverson, 2012)
Marketing Mix Decision: Marketing mix is considered as an essential tool for organisational products and services. This helps them in making appropriate decision as a result it assist firm in their business growth.
Implementation and control: Both the factor is very important so that employees can use limited resources for manufacturing excellent products. For having a control in operations it is essential that superiors monitor the activities on a regular basis.
1.2 Benefits and costs of a marketing orientation of ALDI
Product oriented and marketing oriented approach is very necessary for company in order to develop a products effectively. Its benefits and cost of marketing are explained below:
Customer centric: This helps ALDI in identifying customer's needs and wants by knowing their choices and preferences. Thus, under this, consumer are given importance.
Reasonable competitive advancement: For making commodities ALDI must make sure that, they are using all the resources effectively so as to deliver commodities that are best in qualities.
Fulfilling demand: This factor will give a better results along with benefits as ALDI is manufacturing goods in speculated period of time. Therefore, it is enabling them in delivering products right on time (Bühler and Nufer, 2015)
Advertisement cost: Most of the companies uses this tool in order to reach to its customers and this is considered as the costliest, as this process takes ample amount of money for getting effective results.
Higher prices: Companies for getting maximum benefits they rise price of commodities so, if customers wants to get appropriate products than they have to pay higher price.
Lack of predictability: In changing market scenario, it is difficult to develop a product as customers have diverse choices in their commodities. Thus, it is quite tough for companies to predict the same.
2.1 Macro and Micro environmental factor
Micro environmental factor:
These includes factors that are very close to business operations and plays important role in success of business. Some of the points are mentioned below:
Customers: ALDI is manufacturing goods according to the customers satisfaction hence, it is helping them in retaining consumers loyalty.
Employees: They are determined as a key element who work for company so as to provide benefits to respective organisation.
Macro Environment Factor:
Demographic Factors: This factor must be determined by companies before establishing any product and it includes occupation, age, sex, density and location. This will give company an overview from where they can get maximum benefits.
Economic environment: This includes the capabilities of buying and selling process by a person.
Natural environment: This consist of elements such as natural resources, raw materials etc. as these can have a great impact on business operations as it will assist company in manufacturing best quality goods.
Technological factor: All the latest tools and technologies are included in this macro environmental factor (Challagalla, Murtha and Jaworski, 2014).
Political factor: Rules and regulations made by regulatory bodies at national and international level. This help companies in regulating the task in an effective manner.
2.2 Segmentation criteria for making products different in market
ALDI is giving a wide range of options to its customers so for this they have divided the entire market into segments and different parts. Therefore, some of the segments are mentioned below:
Demographical Segmentation: This segment majorly focused on population and people living in these areas. This also includes factors like race, class, status, income of people and many more.
Geographical Segmentation: ALDI has divided this segment on the basis of size and climatic condition of a particular places and they are manufacturing goods accordingly.
Behavioural Segmentation: Nature of person must also be considered as this will assist firm in analysing the choices and preferences of customers. If consumers will not get appropriate results than company's growth can be hampered.
Psychographic Segmentation: Under this, all the choices and preferences are considered and in context with ALDI they are manufacturing goods as per the choices and preferences so that they can satisfy the needs and wants of customers. Company is determining factors like lifestyle, social status etc.
2.3 Targeting strategies for a product
There are many strategies that are made by companies in order to attract more and more customers towards their company. In case of ALDI they are using differentiated and undifferentiated and concentrated marketing strategies that are explained below:
Differentiated marketing strategy: Under this, after evaluating different marketing segments they design their proposal for every individual and related marketing program. They apply extensive range of products in order to increase their sales and profitability.
Undifferentiated marketing strategy: While making any strategy this doesn't determine any kind of group or individual. Further they make product of entire market which customers can avail according to needs and wants. This concept is useful for those who have little competition.
Concentrated Marketing strategy: Under this company make commodities for a selected market area. Therefore, they concentrate in a particular segment and manufacture goods accordingly.
2.4 Affects of buyers behaviour in marketing activities
Customers behaviour is very important if company wants to improve or increase their sales and profitability. Further organisational activities of marketing majorly depends upon the nature and behaviour of customers. Some of the factors are mentioned below:
Habitual: This explains behaviour of customers that they buy goods from the places from where they are familiar (Dann, 2010). Therefore, customers show their low involvement products that are available in the market area. This includes everyday products that are used on a daily basis.
Wide range of variety: Now a days customers needs a variety of products which best suits them. For example: In market areas customers can get a variety of products or substitutes for clothes which they can purchase according to their choices.
Dissonance behaviour of buyer: Under this, consumers constantly search for the products at best price but high in quality. Therefore, managers of ALDI is making strategies that so as to attract a large number of customers.
Henceforth, ALDI is also determining the cultural and social factors while manufacturing their products and commodities. For example: Company is making and designing clothes that are according to the latest trends.