W1008 MARKETING ASSIGNMENT
- 1. MARKETING W1008 2014 Student Name: Afrah A. Sheikh Lecturer: Mrs. Nermeen Nasr. 30-Jan-14
- 2. 2 Contents Assumption…………………………………………………………....5-6 Marketing theories ................................................................................. 6-8 Good values…………………………………………………………….08 Promotional Mix ................................................................................. 8-10 Conclusion………………………………………………………..…….10 Reference……….……………………....................................................11 ABD
- 3. I am a marketing manager of a pastry shop by the name Afrah’s Baking Delights. It is located in a very convenient place in my neighborhood across the downtown in Al-Khobar surrounded by many other pastry shops. Being surrounded by many other pastry shops increases the level of competition which in my opinion creates the best atmosphere to work as the competition among the productivity and quality of good rises. It is the urge among sellers to achieve goals by getting sales volume, market share and of course greater profit. In our bakery we sell all types of sliced breads, brownies, and different varieties of biscuits, tarts, cinnamon rolls, kunafas, macaroons, fudge cakes, cheesecakes, cookies, pretzels, croissants, baklava’s, edible chocolates, etc. and we also ensure that we use extracts of freshly chopped cinnamon, lemon or orange in our baking products as it gives a nice mouth watering smell in the freshly baked items. Apart from the smell, it is very important that the item should have a great taste as well as it persuades the customer to buy and become a long term client. As we are encircled by many other pastry shops, it has led our firm to produce new products more frequently on daily basis with advanced technology and servicing for lavish and good quality items to be produced. We have kept our prices low so that many customers get attracted and they keep coming to shop from our bakery. For more customer sales, we have kept the price range of everything very affordable. As a marketing manager, I have kept well trained staff that knows how to deal with the customer’s needs and wants. I have given workers their own work schedules so that they know what time they should function at what shifts. We are also present to take orders on the demand of the customers especially for any special events to make them unforgettable, such as making wedding cakes, engagement cakes, graduation etc! I am also well aware of the mess which can be created in the kitchen and sanctuary, but to keep the highest standards alive, I have employed a few employers who do regular cleaning, washing and inspect for the freshly baked items. This way 3 Afrah’s Baking Delights
- 4. our bakery stays clean and hygienic for the customers as well as the workers, as it creates a better environment to work. The assumption for my pastry shop would be to get to the high global level in terms of quality of products and services offered by us to our customers. In this age of rapidly changing life styles consumers are driven to change their eating habits constantly, Afrah’s Baking Delights responds to their desires and extended its existing product line. In addition our main objective is the continuity in the provision of superior products at better competitive prices and to create a successful network of Franchisees for Afrah’s Baking Delights in the downtown of the Kingdom of Saudi Arabia and then in the Middle Eastern region and the World. Marketing philosophies Every company can have different perspective or philosophies. For example of any random company, they have the idea that if the production is done on a large scale, the cost would be less and the product would be sold automatically. In this way, the company will focus mainly on the large scale production of goods. Similarly, some other company can have a different perspective and idea which can be that if the quality of the product is enhanced, there will be no difficulty in selling the product. The marketing manager designs the strategies that will allow them to gain relationships with the customers. There are five main concepts a marketing manager needs in order to compete and bring a successful conclusion for their organizational goals. The five competing concepts by which companies are guided in their marketing efforts are: production concept, product concept, selling concept, marketing concept, societal marketing concept. Production concept: Those company who rely in this philosophy that if the goods and services provided will be kept cheap and if it would be provided or made accessible at many various places there won’t be any obstacles regarding sales or trading. Production itself by name is a concept that is based on the consumers who favor the products which are available easily and are economical and affordable. By keeping the production concept in mind companies invest all their marketing efforts in cutting down the cost of production and establish their distribution system. In order to diminish the cost of production and to pull it down to a minimum level, these companies indulge in large scale production. This helps them in performing the economics of large scale production. Correspondingly, the cost of production per unit is reduced, the point of relevance of this philosophy is apparent only when demand exceeds supply. It does have a drawback as well, it is not always mandatory that the customer every time purchases the easy available and cheap goods and services. Product Concept: This concept holds that consumers will favor products that offer the most quality and innovative features. Product concept is based on the ways to improve quality, performances and use great features of high standard to attract 4
- 5. buyers, the basis of this thinking is that the customer gets fascinated and tempted towards the products of good quality. On this basis or idea, such companies express their marketing efforts to flourish and expand the quality of their product. It is an acceptance of the followers of the product concept that the clients get attracted to the products of admirable quality. This isn’t the absolute truth because it is not the only basis of purchasing goods. The purchasers do take care of the products prices, its availability etc. A good quality product with splendid features but high price can upset the budget of a customer. For this reason, it can be said that only the quality of product is not the only way to the success of marketing. Social Marketing Concept: It uses the same strategy of marketing concept never the less, it targets around the product benefit to the betterment of the society as a whole. Greater emphasis is put on environment impact. The companies who trust this concept direct all their marketing efforts towards the achievement of consumer satisfaction and social welfare. In short, this process is known as the latest concept of marketing. The companies adopting this concept can gain long term profits. Marketing Concept: It focuses on what people really desire and want more than the needs of the salesperson. Marketing concept deals with the importance of satisfying the customers need to attain company success. It relies upon marketing research to represent market portions, their size and their needs and it is ensured that he appropriate decisions are made to satisfy the needs of customers. It is believed that success only by customer’s satisfaction hence this concept is believed by many firms that only such good/services should be made available which customer need or want and not the things that you can do! In other words to conclude, they do not sell what they can make but they can make what they can sell. By this process, an advantage of this is that long term profits can be earned. Selling Concept: This conception influences that consumers will not purchase the firms products until it initiates oppressive selling attempts, Particular companies who believe in this concept that mostly the items is misrepresented just by focusing on sales on behalf of what people actually need or want think that it results in high customer dissatisfaction and also think that leaving the customer alone will not help. On second thought there is a need to attract the customer towards the products. They think that goods are not bought but they have to be sold. By keeping this strategy in mind, companies focus their marketing efforts towards educating the clients. As a marketing manager, I chose marketing concept for my pastry shop as it deals with the importance to satisfy the clients need to score success in company. Being surrounded by many pastry shops has increased the level of competition amongst our competitors which has led our workers to work more efficiently producing the best products. It is the pressure among sellers to achieve targets by getting sales volume, market share and of course greater profit. The expectation for my pastry shop would 5
- 6. be to get to the high international level in terms of quality of products and services offered by us to our customers. Good values by building customer relationships When managing a pastry shop, building good relations with customers and satisfying them with their needs is a very necessary task as it the process of creating and maintaining profitable customer relationships. For good values it is very important to have trust which can be built from honesty, reliability and capability. Apart from trust, there are other main factors for building good customer relationship such as commitments, recommendations, word-of-mouth and customer satisfaction which can be earned by providing good quality products. Never the less, satisfaction gauges how positively the customer feels toward the other due to the underpinning of positive expectations. Quality is an element of satisfaction. Loyalty measures the degree of association to which the customer feels that the relationship is worth the energy that it takes to preserve, support, and endorse. Word-of-mouth marketing is perhaps the most powerful influence. Recommendations will measures word-of-mouth that what customers are saying and recommending to others and it measures action. Promotional Mix: Is a way of communicating between the buyers and sellers. It is to create an impact on the customers and alter their decision of buying the products. It has five main aspects: Advertising, Sales promotion, personal selling, public relations and direct marketing. Advertising – it is a form of non personal promotion. It happens when the companies pay to promote ideas, goods or services in an array of media outlets. It Presents and promotes ideas, goods, or services to an identified sponsor. For instance, printing adverts, radio, television, billboard, direct mail, brochures and catalogs, posters, motion pictures, web pages, banner ads, and emails etc. Advertising is found everywhere, because with the help of advertising, companies get engaged in a one-way communication to their clients or prospects. Companies use different types of advertisements to promote and introduce the products, to remind the consumers about the existing product and to increase the demand again in the market. Different kinds of advertising most commonly used are: Informative advertising- It is the distribution of advertising messages through mass media with the intent of briefing a target market about the benefits exhibited by a new product or innovation. Persuasive advertising- Is which essentially provides the prospect with hard data about the nature and function of the product. Furthermore, the assumption is that the consumer already understands the basic nature of the product, but needs to be convinced of the desirability and the benefits that set a distinct product apart from the competition. The advertising media used must be appropriate in order for it to be cost-effective, for my pastry shop the media selected is the local newspaper named as Arab news as it is very promising form to advertise and have millions of readers, patrons researching their purchases, read by highly educated and affluent 6
- 7. congregation .In addition the cost of advertising in newspaper is very low. Other form of media which I selected for my pastry shop as a manager is television, it is widely watched all over the world and television offers the greatest circle of advertising qualities. It is set apart from challenging media by its ability to endeavor sight, sound and motion to develop an emotional response. Television is also selected much because of brand image, consumer’s perceptions, cost, demonstration capabilities, person to person communication and retention. Sales promotion - Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions. Sales promotion has 6 main objectives which are to attract new customers, to introduce new products and services, to induce current clients to buy more, to increase sales in off seasons, to add the stock of the dealers. It also helps the firm to stay competitive. Personal selling - A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. It is a procedure involved in between person to person and between the considered buyer and seller. It is very flexible in building relationships and getting fast response. Examples of personal selling include: Sales presentations, sales meetings, sales training and incentive programs for urgent salespeople, samples, and telemarketing which can be face-to-face selling or via telephone. Public relations - is the way organizations, companies and individuals communicate with the public and media. It is a paid intimate incentive of supply for a product or service unit by planting significant news about it or a complimentary presentation of it in the media. Examples: Newspaper and magazine articles/reports, TVs and radio presentations, charitable contributions, speeches, issue advertising etc. Several common goals exist for public relations as these are the messages that are delivered by companies that do not cost anything to place. Direct Marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, flyers, catalog distribution, promotional letters, and outdoor advertising. It is a form of advertising in which physical marketing materials are provided to consumers in order to communicate information about a product or service. This removes the middle men from the promotion process, as a company's message is given directly to a potential customer. 7
- 8. As my pastry shop is new, being a marketing manager, I have chosen advertisement medium and created flyers as they couple up as one of the most cost-effective, easiest form of advertising. They can readily be distributed and create awareness of the shop to people. Since flyers are easy and cheap to produce, attracting even a small number of customers will still off-set costs you incurred to print and distribute. Apart from flyers, I have made business card copies of my pastry shop as it is one of the most valuable networking aids to attain more loyal customers. It is a great way to promote my pastry shop, as these cards are reusable and contain all the useful information like website and contact number and these cards pass from person to person, giving the same message to each individual who comes in contact with it. To conclude, I would also like to mention that I have made the boxes, shopping bags with the name of my pastry shop which is Afrah’s Baking Delights to attract more prospects and increase my sales. This is attractive way yet very cheap too. I have chosen marketing concept because it gives importance to the needs and wants of the people and it is the best because products made are of high demand. In the promotional mix I have chosen advertisement as it is the best way to promote a bakery that is new in business. Planning out all the theories and promoting methods is very important as it gives a better picture of the ideas to the business and the goals can be better achieved. This assignment has helped me a lot to see how a business needs resources and the right planning methods to start up as a successful business, not only the promotion but each and every field is to be studied in detail to ensure the business grows well later on and will create a brand image among the consumers. 8 ABD ABD
- 9. 9 Reference List: 1. http://www.yourarticlelibrary.com/business/5-important-concept-of-marketing-management- philosophy/1076/ 2. http://www.masterclassmanagement.com/ManagementCourse- MarketingPhilosophies.html 3. http://www.ehow.com/how_8455323_advertise-bakery.html 4. http://www.ehow.com/how_5108483_promote-bakery-business.html 5. http://retail.about.com/od/marketingsalespromotion/a/newspaper_ads.htm