Task 1 1.1 Compare Marketing as defined by the CIM (UK) and AMA (US) A.

Marketing was defined according to its activities and utilities within the organization. Therefore, different organizations and experts define it differently, as the viewed it from different angle. The Chartered Institute of Marketing (CIM - UK)- Marketing is the management process responsible for identifying, satisfying and anticipating customer requirements profitably. The American Marketing Association (AMA) define Marketing as the performance of business activities that direct the flow of goods and services from producer to consumer or user. The Chartered Institute of Marketing (CIM - UK) says that marketing is an issue of Identifying the customer needs. The American Marketing Association (AMA) says that its a tool that directs the flow off services and goods. Both the above statements are correct from the aspect and view point of a business or an individual. 1.2 Summarize the elements of the Marketing orientation and compare with the orientation adopted by A&S A. Many practitioners agree that market orientation is the essence of modern marketing management and strategy. The difficulty of market orientation resides in the fact that no one has specifically linked marketing management to measuring the implications of business profit and loss performance. To date, practitioners are deepening their understanding and ability to measure the influence of market orientation and its effect on a firms profitability. Further, studies have shown that aligning a corporations culture with specific market orientation generates exceptional value for customers. Consequently, a market-oriented and culturally aligned sales-force takes into account multiple means for creating value for the company and benefits for consumers. Marketoriented companies conceptualize and recognize common threads and conclude that a market oriented cultural is a function of customer-orientation, competitor-orientation, and inter-functional-coordination alongside a companys long-term mission and its profit projections. Thus, a business that seeks long-term profits must also value a customeroriented culture.

The key elements are as follows:

Profit: ultimately, though, customer satisfaction in itself is not sufficient the firm must also make profit from its operations. Marketing team: The marketing team needs to work with other departments to focus the firms efforts on the selected markets and customers through shared corporate objectives Customer and relationship marketing: by focusing on the needs of the target market, the firm can react quickly to changes and the customer will be satisfied and less tempted by competitor products and indeed will consider buying other products in the product range. This flexibility in responding quickly to customer demand is crucial to the success of the market orientation. An extension if market orientation s the concept of relationship marketing which refers to the notion of the marketing to a customer with the expectation of a long term relationship. Marketers segment their target market to the individual consumer and understand the value each customer can bring to the relationship.

The target market: The natural starting point is to try and discover what customer actually wants. These are referred to as needs and firms must be looking at both the probable current needs and the future needs if those to whom they want to appeal. Markets needs to be carefully defined and firms programs tailored to the requirements of each of its target markets. This is achieved through primary or secondary research which reduces the risk of selling the wrong product at the wrong time.

Air and sea previous method was making profit regardless of the customer welfare or concerns because off which the business started to drop in its standards. Thus using the marketing orientation and using some off its techniques like customer satisfactions advertising and other promotional tools the company may regain its standards back

1.3 Identify and assess the benefits and costs of adopting marketing orientation by A & S. A. Why would you be in business if not to make money or to provide a better service or product that helps people? How can you do without being market orientated, you have to take it a step further and be customer-centric to stay a leader? It keeps you from coming out with a product that no one wants. The benefits of market orientation are:

The chances of newly developed products failing in the market are much reduced - but not eliminated - if effective market research has been undertaken first. With the huge cost of developing new products, such as cars or computers, this is a convincing argument for most businesses to use the market-oriented approach. If consumer needs are being met with appropriate products then they are likely to survive longer and make higher profits than those that are being sold following a product-led approach. Constant feedback from consumers - market research never actually ends - will allow the product and how it is marketed to be adapted to changing tastes before it is too late and before competitors 'get there first'.

Task 2 2.1 Explain to your team about the Environment that Air Arabia operates in and analyze how the micro and macro environments can affect all the marketing decisions. A. The environment air Arabia works in is very crowed as it has to compete with much bigger and international airlines. As air Arabia is a budget airliner its goal is

to make as make customers as possible to survive, thus, it needs good market name and value to operate and survive. Micro environmental factors are, 1.The company 2.Suppliers 3.Marketing intermediaries 4.Competitors 5.Public 6.Customers.
1. The company: All marketing decisions are made based on the policies of the

company and its present status. A market decision is affected drastically if the company is being sued or being tried of other unlawful activities or of the company may have reach bank corruption Or decided to liquidate the business.
2. Suppliers : Theses decisions may also get affect by the supplier of the

product or raw materials. Such as if a a decision has been made for a promotion my giving a free product but the supplier of the product is unable to meet the deadline this affects the market decision which in turn halts the promotion.
3. Marketing intermediaries: marketing intermediaries are independent firms

which assist in the flow of goods and services from producers to end-users, they include agents, wholesalers and retailers, marketing services agencies, physical distribution companies. Thus if these intermediaries shut down or tend not to sell the companies product it is going to affect the market decision as well.
4. Competitors: As competitors or rivals are one off the biggest treat to a

company, such as if a competitor launches a new product or promotion in the market which out sells other business products and services its tends to affect the market decision wither to introduce a better product or promotion or to introduce a new product in other words innovation
5. Public: The general public must kept satisfied weather they are a customer or

not as if they are not kept satisfied the outcome might me a negative attitude towards the company which in turn will affect the loss of previous loyal customer making affect at the market decision.
6. Customers : The customer of a company affect marketing decisions in many

ways such as if the customers are kept satisfied they tend to promote the company and increase the value of the company but if they are not satisfied they not only might stop purchasing the companies goods and services but

also have a negative attitude towards it which affects all the marketing decisions Macro environmental Factors are, 1.Demographic 2.Economic 3.Natural 4.Technological 5.Political 6.Cultural 1. Demographic: The market decision also affects on the population of the targeted consumer age 2. Economic: The economic status of the country in which the company is indulging with its business affects greatly as balanced economy is a best place to perform business but to carry out business where the country has scares resources and income which is not suitable for these product afeects the marketing decision as well 3. Natural : The natural factors affects every decisions including the market decision 4. Technological : Technology is one off the main factor as the most off the world production is automated and depending on the type of the technology the company is using the decisions are made. 5. Political: The political factors of the country dose affects such factors as well . 6. Cultural: This factor is important as a company cannot abuse or insult a cultural of the country and respect it thus stating the market decisions taken by the branch of the company in one country might not be applicable in other. 2.2 Since Air Arabia has been trying to service anyone and everyone, justify suitable segmentation criteria and draw conclusions that can be used for two of their products in different markets consumer & business markets.
A.

Consumer markets: The consumer market represents individuals and families purchasing goods and services for personal consumption. The consumer market excludes business or government purchases, or other non-personal investments. Business market: Business market consists of profit making organizations. They can be industries, business and retailers. They buy products for business use, reselling

B.

or making other products. Buying is done by professional people. The product is backed by company's reputation, sales force and competitive price. As the airline is a small budget airline they depend on any and all passengers they could acquire as their customers to survive. They need to promote and keep satisfied they old and new customer

2.3

Describe the factors that will influence the choice of a target segment.

A. Regardless of how segmentation is incorporated into marketing activities, experienced marketer usually execute segmentation to enable him provide higher values to his potential customers. He will be able to know which specific customers he is serving and will be able to address their needs and concerns. After segmentation, what the marketer needs to do next is targeting his efforts and focuses on the identified market segments. He will create a marketing campaign that will fulfill the needs as well as the market condition of his targeted market group. Target market segment are affected by two salient factors: 1. How suitable the segment is to the product manufacturer objectives, resources as well as capabilities and 2. How attractive the target market segment is. In determining the suitability of the segment to the manufacturer, the marketer needs - to ensure that the product manufacturer will be able to provide superior values than competitors to the customers. - To evaluate the impact of serving the segment with respect to the manufacturer reputation and dignity. - To access the distribution channels that will serve the targeted market sections. - To determine the capital buoyancy of the manufacturer to serve the market group. And in determining the attractiveness of the target market section, the marketer will have to evaluate - the percentage number of the customers with respect to the broad market (size of the segments) that will be served. - Sales potential for the product manufacturer in the segment. - Profit margin expected from the segment. - Growth rate and competition in the segment.

- Required market share to break even.

2.4 Explain to your team how the customers behave differently in the consumer and business markets, and demonstrate how it can affect the marketing activities of Air Arabia. A. As an marketing manager, the selling environment of business markets is very different when compared to selling to consumers. The basic difference are these two. 1) Business markets are more likely to be price driven than brand driven, and 2) Demand in business markets tends to be more volatile than consumer markets. However, the two markets are dissimilar in other ways making it a challenge to take a different approach when selling to business customers than to consumers. These differences are: 1. 2. 3. 4. 5. 6. How Decisions Are Made Existence of Experienced Purchasers Time Needed to Make Buying Decision Size of Purchases Number of Buyers Type of Promotional Effort Needed to Reach Buyer

How decisions are made: In the consumer market a very large percentage of purchase decisions are made by a single person. there are situations in which multiple people may be involved in a consumer purchase decision, such as a child influencing a parent to choose a certain brand of cereal or a husband and wife deciding together to buy a house, but most of the time purchases are individual decisions. The business market is significantly different. While single person purchasing is not unusual, especially within a small company, a significant percentage of business buying, especially within larger organizations, requires the input of many. Some of the roles played in the business market are as follows.

Buyer responsible for dealing with suppliers and placing orders (e.g., purchasing agent)

Decider has the power to make the final purchase decision (e.g., CEO) Influencer has the ability to affect what is ordered such as setting order specifications (e.g., engineers, researchers, product managers) User those who will actually use the product when it is received (e.g., office staff) Initiator any Buying Center member who is the first to determine that a need exists Gatekeeper anyone who controls access to other Buying Center members (e.g., administrative assistant)

it is important to first identify who plays what role. Once identified the marketer must address the needs of each member, which may differ significantly. For instance, the Decider, who may be the company president wants to make sure the purchase will not negatively affect the companys bottom line while the Buyer wants to be assured the product will be delivered on time. It dose require planning to address the need of each buyer. Existence of Experienced Purchasers: Dealing with experienced buyer is a Challenge in itself its is quit difficult to sell an item with a set price to these kind of buyers, such buyer are very persuasive in getting a bargain and will turn to another brand of the same product if not given a deal. Organizations often employ purchasing agents or professional buyers whose job is to negotiate the best deals for their company. Unlike consumers, who often lack information when making purchase decisions, professional buyers are generally as knowledgeable about the product and the industry as the marketer who is selling to them. Time Needed to Make Buying Decision: Sometimes making a decision for the business market gets tough due to many factors such as number of choices to chose from and number of deals the business is presented with in such chase the marketer are suppose to keep in touch with the business and peruse them to make a decision in our favor. Depending on the product, business purchase decisions can drag on for an extensive period. Unlike consumer markets where impulse purchasing is rampant, the number of people involved in business purchase decisions results in decisions taking weeks, months or even years. Size of Purchases: For products that are regularly used and frequently purchased, businesses will often buy a larger volume at one time compared to consumer purchases. Because of this business purchasers often demand price breaks (e.g., discounts) for higher order levels.

Number of Buyers: Depending upon the product within some industries buyers are highly concentrated in certain geographic areas. Consequently, compared to consumer products, marketing efforts are confined to a smaller targeted group. Type of Promotional Effort Needed to Reach Buyer: As the number of individuals in consumer market are relatively higher than in business market but the demand of product by these individuals in consumer markets is very smalls compared to demand of an individual in business. Companies who primarily target consumers often use mass advertising methods such as advertising in television, newspaper, radio, internet to reach an often widely dispersed market. But for business-to-business marketers the size of individual orders, along with a smaller number of buyers, makes person-toperson contact by sales representatives a more effective means of promotion. Thus, keeping all the above point in consideration the current marketing activities of air Arabia are affect greatly and should be changed and made more affective and should focus on getting customers both from consumer as well as business market.

Task 3 3.1 Describe how Eco can be developed to gain competitive advantage over its competitors and appraise what P&G could do? A. Competitive advantage can come in one or combination of the following factors: Price, service, quality, location, or imbedded customer base. Price: One of the easiest way to gain advantage over the competitor is price if the a god quality good or service is provided at a low cost it can gain a huge advantage over the competitors, but selling a good or service at low cost means having the need of lower labor cost, materials or overhead cost.

Service: Service can also be serious differentiator and competitive advantage. If you can respond quicker, get it done quicker, or get there sooner, your customers may prefer you over competitors even though your cost might be slightly more. Quality: A good quality product can often get you an edge over the competitors customers dont like to pay high for a product that wont last for long such as a detergent, but providing them with a good quality with less price. Over the long term producing higher quality is almost always less expensive as you dont have to deal with as many returns, or as much scrap, or rework. Depending upon different products

Location: Location can play part in the price of the product if the good is produced to far out from the distribution outlets the transport cost can affect in high price but the location mostly dont effect a lot in the detergen t industries. P&G can take the factors mentioned above and make changes accordingly to provide the best quality product at a cheap price with the most effective way to win over the competitors also maintain and update these strategies accordingly as New competitors with better products or service arrive on the scene almost daily.

3.2 Design an appropriate distribution network for Eco that can be organized to provide customer convenience. A. The most easiest way of distribution for Eco is as shown in the below diagram .

The Producer

Wholeseller

Retailer

Consumer market

End consumer

As shown above this is the easiest and most effective way to reach the maximum number of customers 3.3 Comment how the price of Eco should set to reflect companys objectives and market conditions. A. There are different factors affecting the price which also must reflect supply and demand relationship. 1. 2. 3. 4. 5. Fixed and variable costs. Competition Company objectives Proposed positioning strategies. Target group and willingness to pay. The price of Eco should be set very carefully the price should not be too low which may lead the customer in thinking the product is low in quality and standard yet it should not be kept so high that the customer may mislead in beliving that the product is not affordable by him/her. The price must be fairly set buy according to the present market condition of such product keeping in mind the prices of the competitors.

3.4 Explain how the promotional activities are integrated so as to achieve the marketing objectives. A. Promotional activities helps reach the marketing goals in many way, some of the type of promotional ways are as follows. Types of promotion Advertising: Public relations Sales promotion: Personal selling: Explanation Any non personal paid form of communication using any form of mass media. Involves developing positive relationships with the organization media public. The art of good public relations is not only to obtain favorable publicity within the media, but it is also involves being able to handle successfully negative attention. Commonly used to obtain an increase in sales short term. Could involve using money off coupons or special offers. Selling a product service one to one Is the sending of publicity material to a named person within an organization Direct Mail Direct mail allows an organization to use their resources more effectively by allowing them to send publicity material to a named person within their target segment. By personalizing advertising, response rates increase thus increasing the chance of improving sales. Listed below are links to organization who's business involves direct mail. Promoting and selling your services online using various forms of online marketing techniques such as banner advertisements, videos or social media.

Internet Marketing

Where you pay an organization to use your brand or logo. This organization usually has a high profile so that you know that your brand will be seen by a large audience. Most common use of sponsorship is Sponsorship with sporting events. The 2012 Olympics being held in London is being sponsored by a number of organizations such as McDonalds and CocaCola as the event will attract a world wide audience that will run into hundreds of millions. As products move through the four stages of the product lifecycle different promotional strategies should be employed at these stages to ensure the sales and without such strategies the marketing objective will not be reached. Stages and promotion strategies Used

Introduction When a product is new the organizations objective will be to inform the target audience of its entry. Television, radio, magazine, coupons etc may be used to push the product through the introduction stage of the lifecycle. Push and Pull Strategies will be used at this crucial stage. Growth As the product becomes accepted by the target market the organization at this stage of the lifecycle the organization works on the strategy of further increasing brand awareness to encourage loyalty. Maturity At this stage with increased competition the organization take persuasive tactics to encourage the consumers to purchase their product over their rivals. Any differential advantage will be clearly communicated to the target audience to inform of their benefit over their competitors. Decline As the product reaches the decline stage the organization will use the strategy of reminding people of the product to slow the inevitable

3.5 Assess the importance of the extended marketing mix for Eco. A. The service marketing mix comprises off the 7ps. These include: Product Price Place Promotion People Process Physical evidence. All of the above Factor are important for the development, growth and sales of eco,and these factors are explained below.

Product: The product is of course very important and the success of the business will depend largely on how good or bad it is. The decision as to the nature of the product also has to depend on its customer base as also their buying habits, geographical locations, purchasing power and other factors. Sometimes a business may want to come out with the best there is, and sometimes the same business might market a product that is for the budget customer.

Price: It is the amount a prospect is willing to pay for the product. There is always the right price for a product ? if it is priced higher than this then it might not sell, and if it is priced lower than that then the business might be missing out on revenues. But there are many issues based on which a company determines the price and that is not limited just to the cost of manufacturing it. These other factors include the perceived value of the product in the customer's mind, the market share of the business, competition and even local tax regulations and distribution and logistic costs. Place: The question where the product is offered is answered here. What are its distribution channels, how and at what price does the business warehouse the items, what are the costs of order processing.

Promotion: Promotion includes advertising and marketing ? the effort to take a product from the business to the customer. Managing the sales force (for a traditional business) also belongs to this. What promotion strategy is best for a business will however not be the same. It will vary depending on the product itself, the market, the customer and also the budget the company has. People An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage. Consumers make judgments and deliver perceptions of the service based on the employees they interact with. Staff should have the appropriate interpersonal skills, aptitude, and service knowledge to provide the service that consumers are paying for. Many British organizations aim to apply for the Investors In People accreditation, which tells consumers that staff are taken care off by the company and they are trained to certain standards. Process Refers to the systems used to assist the organization in delivering the service. Imagine you walk into Burger King and you order a Whopper Meal and you get it delivered within 2 minutes. What was the process that allowed you to obtain an efficient service delivery? Banks that send out Credit Cards automatically when their customers old one has expired again require an efficient process to identify expiry dates and renewal. An

efficient service that replaces old credit cards will foster consumer loyalty and confidence in the company. Physical Evidence Where is the service being delivered? Physical Evidence is the element of the service mix which allows the consumer again to make judgments on the organization. If you walk into a restaurant your expectations are of a clean, friendly environment. On an aircraft if you travel first class you expect enough room to be able to lay down! Physical evidence is an essential ingredient of the service mix, consumers will make perceptions based on their sight of the service provision which will have an impact on the organizations perceptual plan of the service.

Links Google Wikipedia http://www.pg.com/en_US/index.shtml