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Marketing is nothing but making the products and services available to the customers according to their need and wants. The present report will identifies Sainsbury’s various element of the marketing process and cost and benefits of marketing orientation (Aaker, 2007). It also explains how marketing decision are influenced by macro and micro environmental factors and how buyer’s behavior affects marketing activities in different marketing situations. A new targeting and positioning strategy is also proposed for Sainsbury.
Activities which are included in marketing are advertising, selling and delivering products to the people. It very important to understand the customer needs wants and demand so company can provide product and service according to customer. Marketing process include 4 important steps. Main aim of this step is carried out with the purpose of creating a brand value among the customers (Chapman and Borna, 2008).
In marketing process firstly environment is scanned, it refer to know about customers expectation from product. To know about customer expectation various types of research is conducted by company. After scanning the market, it is being segmented. Segmentation is a process where large groups are divided into small units according to similar characteristics. Segmentation types are demographic, psychographic, geographic, behaviouralistic. In this step after segmenting the market that segment is selected which company wants to target. In targeting all segment are evaluated from pre-determined criteria then according to organization ability that segment is selected which give profit to company as well as give satisfaction to customer. According to features the product positioning strategy is selected, this strategy set a product image in customer’s mind. The strategy which is selected it should consider organization goals and market situation.
Market orientation refers to business reacts according to customer needs rather than what they want to serve customers. In the highly competitive market in order to maintain its position company’s main focus is on providing the best quality of services to its customers. Marketing orientation include product, production, selling, marketing and social responsibility (Brown, 2003). To maintain the standard of product and services company constantly examine the buying behavior of customers. Many types of cost are incurred by Sainsbury to maintain the standard of products and service. Companies are conducting many type of marketing research in order to identify the changes in the needs and expectation of customers. Sales and marketing share is increased by Sainsbury because they are bearing business development cost like online ordering etc. (Caemmerer, 2009). Sainsbury get many benefits from market orientation if they introduced new product and service then there has less chances of product falling, if effective market research has been conducted by company. In market orientation they are serving product according to customer need so there has chances that product will survive longer and make higher products.
Sainsbury operations and business decisions are affects by many macro and micro environmental factors. Factors which are included in macro environmental factors are legal, Social, cultural, political, economical, and technological forces. Out of these, socio-cultural and the economic factors has highly impacted the Sainsbury because these factors are non-controllable. To generate high revenue and attract more new customers Sainsbury considered the Christmas and New Year as its peak time. In this season, to know the difference between profitable and non-profitable year various marketing strategies has been adopted by Sainsbury so more customer attracted towards the company. The other factors which affect the Sainsbury are size and growth rate of population in different cities, regions, and nations; age distribution and ethnic mix; educational levels; household’s patterns; and regional characteristics and movements (Cooper, 2000).
The micro environmental factors which affect the Sainsbury operations are consumers, suppliers, employees, substitute products impacts. There are many suppliers of Sainsbury who affects the Sainsbury such as grocery supplier, vegetable supplier, Garment supplier, labour supplier. To exist in competitive market it is important to maintain relation with supplier and maximized bargaining power. The other factor which affects the Sainsbury are employs, every organization success is depends on their employs. So it is essential that good organizational culture create so employees will work in better way. (Creveling and et.al. 2006.).
According to the need and demands of the customers the market growth of the company is dependent. So according to the needs, buying behaviour, purchasing power of customers Sainsbury categories the customers, this process is known as segmentation For example : Sainsbury wants to introduced its new clothing range in market which is available for all age groups and genders. With the help of segmentation equally treat the customers who have homogeneous needs they should segment. They should segment the market demographically and geographically where market is segmented on the basis of age, gender and location (Simkin and Dibb, 2013). On age basis they segment the market into 4 groups such as kids, youth, professionals, aged person.
After market segmentation target strategy has been formulated by company to target on selected segment. Before targeting regarding the segments the relevant information must be collected. The only purpose of targeting is to find that customer group which they want to serve. Three types of targeting strategy is follow by companies according to their product company choose target strategy. Targeting strategies are niche marketing, differentiated marketing, and undifferentiated marketing strategy. For the above product company should follow differentiated marketing strategy because to match with needs of the consumers within the segment they targeting each segment with a product with its own marketing mix designed. Sainsbury is targeting all the 4 segments kids, youth, professionals and age based persons for their new clothing range.
To remain competitive in this market it is not easy to understand customers thinking, behaviour, and purchasing decisions every time. For the development of products, marketing strategies and policies it is essential that company study the pattern of buying behaviour of the customers preceding, so they can sustain in highly competitive market. The customer’s buying behaviour is influenced by many personal and social factors. Personal factor, which influence the customer purchase decision such as age, income, lifestyle, trends. So before marketing the products company must thing about customers.
Social factor which influence the customers buying decision are cultural values, traditions, customs and the recommendations from friends and family. For the new clothing range kids buying behaviour is influenced by psychological thinking. They can attract with other kids t-shirts. The youth is another segment which they are target their buying behaviour is highly influencing because they follow trend, fashion. If fashion changes then their behaviour for particular product is also changed.
Positioning is a strategy to position product and services in market. It explains the how product and brand will be viewed by people. For example, Sainsbury want to position its health food in market. So position them they have to firstly clear the benefits provided by this product such as Sainsbury is offering the new clothing range for all age groups. So position this range in people mind they have to follow different strategies. To position their clothes for kids they can advertise their T-shirts through cartoon characters but on the other hand to position in Youth mind they can use a Celebrity because youth follows celebrity. For professionals they can promote their clothes on different social sites and company websites, because usually they don’t have time to go for shopping so they are using online marketing for shopping ((Simkin and Brroks, 2012).
Every company wants to manage the sustainable competitive advantage. Competitive advantage helps company to maintain and improve the competitive position of the company in the market. To get a better competitive advantage company should focused on research because research helps in to give better knowledge about customer and competitor. The companies can achieve many strategic benefits by developing innovating new products and by giving better service quality to customers in compare to competitors. It is essential that company understand the need of customers, technological innovation, and government regulation so they can sustain in competitive advantage (Cooke, 2000). For example Sainsbury is introducing a new clothing range in the market to get a competitive advantage they should improve their clothes quality. In UK people are more focus on quality rather than price. So if product quality is better than people will prefer their clothing range.
Process through the customer avail companies’ products and services is known as channel of distribution. Product can easily accessible by customers if company develop proper distribution system and it also helps in improve the sales of the company and company revenue is also increased. Three types of distribution strategies are used by companies such as intensive, selective, exclusive distribution strategy. For their new clothing range Sainsbury should follow exclusive distribution strategy. In this distribution strategy their clothing range is only available to Sainsbury outlets and their online websites. They should avail this clothing range to their websites so they can easily attract with customer, know about their needs and demand and provide them products (Hanssens and Dekimpe, 2004).
On particular product and service the amount of money that customers are willing to spend can be defined as price. In marketing mix price is the most vital components. Pricing strategy which is followed by companies is competitive pricing, cost based pricing, value pricing, anti competitive pricing strategies. Sainsbury should adopt competitive pricing strategies for its new product so they can sustain in the business operations. With the help of this strategy Sainsbury maintain leading position in market and compete with competitors. In order to stay competitive in the market this strategy is directing the company. In different locations according to the income level of the customers Sainsbury has tailored its prices. As to give value of products to its customers and achieve the short term sales they focus on value based pricing to better position. Market which is price sensitive or to attract a particular segment they follow the low cost pricing strategy (Hlavinka and Ferguson, 2007).
To achieve marketing objectives integrated strategies are required by companies. Promotional mix is a part of these strategies (Manktelow and Carlson, 2013). The promotional strategies focus on strategies where to tell about its products to consumers business can use provide information to consumers. Promotional strategies which should be used by Sainsbury are advertising, sales promotion and personal selling. The advertisement strategy is integrating combination of price and place. In this company advertise its product tell about the price and the location where this product can find. Personal selling strategy is integration of promotion and price strategy because in this salespeople is trying to sell their product on price basis. Sales promotion strategy is integration of price, product and places. This all strategies are working together to achieve the organization objective (Arnett and Hunt, 2004).
With the help of appropriate marketing mix the company’s desired goals and objectives can be achieved. Marketing mix includes product, price, place and promotion. In order to gain maximum market share, Sainsbury segmented two different segments of market they are:
Segmentation by Age and Gender: On the basis of age and gender Sainsbury segment its customers. They are developing the products as per the age of the segment. According to age wise they are providing clothes, food, drinks. At using right place right product through right promotion and right price they can sell the product. For example: if they are promoting in youth then they should promote through a celebrity because youth follows celebrity style. They should promote through TV, banner, and also clears the price (Schoppe, 2012).
Segmentation by location: If they segment the market according to location then they should follow marketing mix strategy accordingly. For example if they are promoting their trendy clothing style ion cities such as South Africa, Korea. Then it is no use because people of there are not using those types of clothes. So it is important to use right marketing mix at right place. (Linus, 2001).
Business marketing can be defined as Sale of product or service or both by single organization to other organization while consumer marketing is between organization and consumer. Organization main focus in business marketing is on continuity, recognizbility & accessibility, and responsiveness while consumer marketing main focus is on geographic, demographic, and psychographic usage rate (Salkin, 2009). Business marketing has two types:
1. Business to business marketing: In B2B marketing the marketers of the company are being regarded as the seekers of information because they are willing to know about the company information.
2. Business to consumer marketing: In this marketing main focus of companies are on the products advantage and benefits. So it is essential for the company that they highlighted on product’s features (Lee, Yoo and Donthu, 2000).
When Sainsbury wants to expands its business from domestic or local or national marketing to international marketing then they have to make marketing strategies according to the political and legal framework of that foreign country. International market gives international exposure to the company. The business of the company has to fight with many risks and challenges due to which the performance and operation of the company will obstruct. But when they expand their business in international market they are aware about the all political and legal framework they make marketing strategies accordingly.
From the above report, it can be concluded that to stay in the competitive market marketing principles are vital for business. Marketing is done by creating the positive image of company in customer mind and communicating a positive brand message.Companies are conducting many type of marketing research in order to identify the changes in the needs and expectation of customers.
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