Marketing Process free essay sample

Marketing involves identifying customer needs and requirements, and meeting these needs in a better way than competitors. In this way a company creates loyal customers. The starting point is to find out who potential customers are not everyone will want what Noraini’s has to offer. The people Noriani’s identifies as likely customers are known as key audiences. under the marketing concept, Noraini’s Cookies must find a way to discover unfulfilled costumer needs and bring to market product that satisfy those needs. The process of this concept is explained in below diagram; For Noraini’s cookies to still on the same ledger of competition with all the competitors and trends, they need to formulate this process and implying them in everyday business or before any business marketing decision is being made. First, let’s go through the first process of all, Situation Analysis. Noraini’s cookies should first define the situation of current trend and market. We will write a custom essay sample on Marketing Process or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page They should know how is the market behavior nowadays. They need to understand it completely from inside out. There have a lot of ways to run the situation analysis such as, 5C analysis (Company, Costumer, Competitors, collaborators, climate) or SWOT Analysis (Strength, weakness, opportunity and threat). If the situation analysis reveals gap between what consumer want and what is currently offered to them, then there may be opportunities to introduce products to better satisfy those costumer. Take for an example, this is the SWOT analysis of Cadbury’s which is written by Sunanda K. Chavan for ManagementParadise. com. SWOT analysis of Cadburys Strength 1. Cadbury is a company, which is reputed internationally as the topmost chocolate provider in the world. 2. The brand is well known to people they can easily identify it from others. 3. Cadbury the world leaders in chocolate, is a well-known force in marketing and distribution. 4. Users have a positive perception about the qualities of the brand. 5. Cadbury main strength is Dairy milk. Dairy milk is the most consumed chocolate in India. 6. By using popular models like Cyrus Brocha, Preety Zinta and others Cadburys has managed to portray a young and sporty image, which has resulted in converting buyers of other brands to become its staunch loyalists. 7. Cadbury has well adjusted itself to Indian custom. 8. It has properly repositioned itself in India whenever required i. e. from children to adults, togetherness bar to energizing bar for young ones etc. Weaknesses 1. There is lack of penetration in the rural market where people tend to dismiss it as a high end product. It is mainly found in urban and semi-urban areas. 2. It has been relatively high priced brand, which is turning the price conscious customer away. 3. People avoid having their chocolate thinking about the egg ingredients. Opportunities 1. The chocolate market has seen one of the greatest increases in the recent times (almost @ 30%) 2. There is a lot of potential for growth and a huge population who do not eat chocolates even today that can be converted as new users. Threat 1. There exists no brand loyalty in the chocolate market and consumers frequently shift their brands. 2. New brands are coming and existing brands are introducing new variants to add up to an already overcrowded market. http://www. managementparadise. com/forums/marketing-management-rm-im/201618-swot-analysis-cadbury. html From the situation analysis, we can come o our second process which is Marketing Strategy. There is four elements of market strategy. 1. Market segmentation. 2. Targeting 3. Positioning 4. Value proposition to the target market. Market segmentation can be defined as the identification of portions of the markets that are different from one another. Segmentation allows the firm to better satisfy the need of its potential costumers. (citation) Why did Noraini’s cookies need this segmentation ? here’s why, costumer are not all alike. They are different in every way. The place they stay, how they live, their race, religion, their family, their education, genders and even generation (example: Baby boomers, Generation Y, Generation X). so if Noraini’s cookies want to tackle the market, they have to learn this differentiation and segment their marketing based on this 1. Geography. 2. Demography. 3. Psychography. Geography is easy to identify. As for Malaysia market, Noraini’s cookies need to identify which product is to sell in which area. They have to know what is the consumer in that area really want. Take for example, they want to promote their frozen food. Noraini’s cookies should be more focusing on urban area. Area which people didn’t have enough time to prepare the food themselves. So the citizens need only buy the frozen food and cook it at home. For another example, let’s take KFC as our reference. They always try to come out with new ideas to keep costumer consuming their products. Thing is, they really taking this segmentation in sight. Why ? because, they always come out with the product which can fulfilled the need of their costumer in certain area. Example, KFC launch â€Å"Tom Yam† flavored fried chicken in Thailand because Thailand people love â€Å"Tom Yam† so much ! (citation needed) Let’s move on to demographical segmentation. This segmentation is tougher than geographical segmentation. Noraini’s cookies should take into account of a detailed statistic of what is actually the people wants. Each person needs is different from one another. Take for example, gender. One of Noraini’s cookies product is premixed spices. So, Noraini’s cookies should market the product to an appropriate gender. Market the product to women because mostly, only women who need the premixed spice product. For the better picture of demographical segmentation, let’s take another example. Say, Mercedes Benz. They made car for luxurious social class people. While proton in the other hand, make a car to try to fulfill the needs of not very luxurious social class people. Next is psychographic segmentation. Also called as behavioural segmentation. This type of segmentation divides the market into groups according to customers’ lifestyles. It considers a number of potential influences on buying behaviour, including the attitudes, expectations and activities of consumers. If these are known, then products and marketing campaigns by Noraini’s cookies can be customised so that they appeal more specifically to customer motivations. Let’s take one example. Let say Noraini’s cookies has studied on their consumer annual occasion which is what Noraini’s cookies always does on their cookies product, they can adjust the marketing campaign which suits the current occasion. If current occasion is deepavali, which is celebrated by Hindu, which consume a lot of premixed spice for curry and Dhal, this is the time for Noraini’s cookies to change the marketing campaign to premixed spice promotion. For another example, on psychographic segmentation, usage of consumer. It can be divided into heavy user, medium user and light user. Hotlink communication see this segment and market their internet plan based on this category. Hotlink communication offer a different internet plan for different user. Image below will show the correct example. If the user is light user, they can buy data plan for only RM30. While for heavy internet user, they can buy RM 68 worth of data plan. (citation needed) Target marketing tailors a marketing mix for one or more segments identified by market segmentation. Target marketing contrasts with mass marketing, which offer a single product to entire market. Noraini’s cookies should be looking into this aspect more. They should be more focus on one segment to market their product. For example when Noraini’s cookies want market their daily biscuits, and only biscuits, they need to focus on demographic segmentation. Separate the product based on age of consumer. Should have like biscuits for children, for student, teenager and also old citizen. Create a different flavor for each and every stage of consumer. Teenagers are more likely to be attracted to chocolate and strawberry, so, Noraini’s cookies should create a daily biscuits that based on this flavor. And the pricing should be suitable with the age. Mostly teenagers are still depending and parents money and it is limited for them. So, instead of marketing the biscuits with normal price which is quite pricy for them (RM12. 00 – RM16. 00), Noraini’s cookies should market the biscuits for like RM 4 – RM 5 depending on the cost of production. It maybe not only will attract teenagers to buy it, it might attract other stage of age to buy the product because of its price. (citation needed) Positioning is developing a product and brand image in the minds of consumers. It can also include improving a customers perception about the experience they will have if they choose to purchase your product or service. The business can positively influence the perceptions of its chosen customer base through strategic promotional activities and by carefully defining your business marketing mix. Effective positioning involves a good understanding of competing products and the benefits that are sought by your target market. It also requires you to identify a differential advantage with which it will deliver the required benefits to the market effectively against the competition. Business should aim to define themselves in the eyes of their customers in regards to their competition. For Noraini’s cookies brand to be remembered by costumer. Like when we say MCD, costumer already what is it stands for (MCDonald). They will automatically pictured the image of burger, the yellow suited clown, the M letter and many others which lead to the name of MCD. (citation needed) Marketing Mix Decisions What Noraini’s cookies should do is, implement the name of Noraini’s cookies to the costumer. Noraini’s cookies can tackle this aspect by focusing on the 4P’s. 1. product 2. price 3. promotion 4. place Product Noraini’s cookies should guarantee the quality of their product is much better than other completion. What is making Noraini’s cookies specials? What is the unique feature of their product? They should know this to conquer the costumer mind. Maybe if Noraini’s cookies have something that currently not offered by their competitor (or currently offered by their competitors but Noraini’s cookies can make something better) like the taste are much more delicious than the competitor or extra cream on the cookies, Noraini’s can successfully implement the greatness of their product which automatically live the name on consumer mind. The name of the product also playing an important role here. The name should be something catchy and easy to remember. Because the product will carry this name to consumer mind to remember. For example, Kiss cookies by Noraini’s. when people mention the name of kiss cookies, people will imagined the taste and the product itself. Kiss cookies is one of the name picking success by Noraini’s cookies. For example, why is MCDonald Big Mac burger is so popular? While Ramly burger not so much? Because, MCDonald has implement the idea of their product is so much better than the other burger because of their special recipe sauce and their patty is made from 100% meat. People will actually believe that and set their mind that MCDonald burger is much better than the Ramly because of the patty and the secret sauce. They offer something that Ramly as their competitor not currently offer. Price Pricing is one of the most important decisions made by any business organisation. Economists use the term market clearing price to identify a price at which sellers are prepared to sell because they feel they are getting a fair price, and buyers are prepared to buy because they feel they are getting value for money. If prices are too high or too low the market will fail to clear. Positioning Noraini’s cookies product via pricing is also effective. Noraini’s cookies has done a very good job on pricing which Noraini’s new lined product called â€Å"GoodKiss† was sold on internet for only RM2. 20 including other of their product. It available at Nilai Muslim Shop. (http://nilaimuslimshoppe. blogspot. com/2012/11/noraini-cookies. html) Noraini’s cookies should and need to successfully enter their costumer mind that they are giving a right price for a right product. Promotion Promotion covers all the tools and techniques by which an organisation markets its products and services. For example, this might include traditional methods such as advertising in papers, as well as the use of social media (like Facebook and Twitter), websites and online networks. Promotion is playing a big important role on positioning the product to the market. Noraini’s cookies has somehow kind of failed on doing so. Frankly said, we never see or heard about Noraini’s cookies neither on paper or television. In order to gain market share and attract new customers, Noraini’s cookies needs to be distinctive in the marketplace. It needs customers to think about its products in a particular way. This helps them distinguish its products from those of competitors. To look on Noraini’s cookies competitors example, Kraft Oreo, they didn’t sell much at the beginning of the product introduction era on 1912. But when they first (1923) commercialize their product through various way of advertising, the sales are going to the roof. They implement the idea â€Å"Twist it† on their costumer so whenever the costumer is told about â€Å"twist it†, costumer will automatically remember Oreo. In Malaysia, they used â€Å"Putar, Jilat, Celup†. Place This is the place where Noraini’s cookies first introduce their cookies. A very smart move indeed. Streets on bazaar ramadhan and raya festival. Jaya jusco taman Tun Dr Ismail (late 1980’s) Plaza angsana johor bahru (1998) Giant Uda ocean Pasaraya OTK Tesco Carefour (aeon Big) Seremban Parade. http://iksprofile. blogspot. com/2012/05/noraini-cookies-worldwide-sdn-bhd. html http://www. thestar. com. my/Business/SME/2013/07/22/The-taste-of-Raya-in-the-air-Ramadan-is-a-bumper-month-for-makers-of-traditional-treats. aspx http://halalmedia. net/from-cottage-to-global-the-story-of-norainis-cookies/ As you can see, Noraini’s cookies are marketing her product at place where got a lot of people visiting every day. It helps with mouth to mouth word spreading since the audience is big and changing every single day. Implementation and control Last but not least for the marketing process to run smoothly for Noraini’s cookies, they need to implement all the process I’ve stated above and control everything. They should be aware on trend changing. Example if raisins based product is not a trend anymore, they need to create a new product depending on what is going on around. Benefits and cost of Noraini’s marketing approach 1. Adaptability One of the major advantages of following Noraini’s cookies marketing approach is adaptability. An organization is more to costumer centric which is work and market their product based on what is costumer needs and wants. Adapting to the requirement of the market can give an easy pass to success. The businesses know what the costumer actually wanted and deliver it to them. 2. Eliminates doubts and gambling. Instead of gambling and forecasting what is costumer actually wanted, Noraini’s cookies actually look into what is costumer wants. With this marketing approach, you can lower the risk of bad stock. You actually deliver what market needs and following the trends also eliminate the risk of pointless advertising or out of date advert. 3. Strengthen product name in the market. Because of Noraini’s cookies focusing what the markets wants, they will be called â€Å"up to date†. Which is good for the business. Costumer will always think Noraini’s cookies as an Up to date company and left behind in promoting their product. Will not left behind with competitor because of the always on going research about market trends. 4. Building costumer value