Introduction
Portakabin is a company that concentrates on the designing and delivery of modular buildings to its customers. The company is dedicated to providing its clients with quality products and services that match their needs. The initial company market dealt with the construction industry with a concentration on portable buildings that offered on-site storage and accommodation for the clients. However, the company has diversified its market by extending it to include schools, medical centers, and offices as well. Portakabin (2011) reveals that the company is one of the most recognized and well-established brand image. Its brand image is enhanced by the company’s promotional strategy differentiating it from its competitors. Besides, this has played a vital role in making the company a market leader in the United Kingdom.
1.1 Answer
Marketing refers to the move taken a business to promote and sell its products to its target customers. It calls for proper planning, market research and advertising to promote the success of the company. This definition is also supported by Best (2004, pp, 24)
The company uses environmental analysis to determine the changing customer preferences in the markets where it operates or where it wants to enter. It is the best way of preparing the company to cope with various changes which affect its business operations. The analysis is based on both internal aspects which include management strength, employees and customers. On the other hand, it considers the external aspects which involve changes in technology, political, economic, cultural and social factors among others. In so doing, the company stands a better chance of responding to customer preferences thus enhancing satisfaction.
Secondly, the company operates in Business to Business segment in which its products and services follow a defined target market. The company uses various marketing strategies to enter each target market. The most commonly used marketing strategies include market entry, segmentation, competitive and communicative strategies. Such strategies play a great role in helping the company to develop its target markets.
The company operates in different target market thus compelled by circumstances to adopt various marketing strategies so as to remain competitive in every target market. For instance, the company uses strategies such as competitive, branding, positioning and communication strategies to keep its customers updated. Furthermore, the company’s marketing mix focus on the four P's which include product, price, promotion and place as discussed later in the paper. Finally, Portakabin uses market research to identify the needs of all its market. These acts as the market control for the company since the company can deliver quality products that satisfy its customers. This arguments about Portakabin are supported by Ramaswamy (2002, pp. 122)
1.2 Answer
Portakabin is ever committed to producing unique products and provision of unique service that satisfy its customers. This is promoted by the company’s focus on production and application of the concentrated strategy. These are some of the marketing orientation benefits that have enlisted good reputation and performance to the company. However, in enhancing quality, there are various costs involved by the company. Firstly, the company invests a lot in marketing research thus able to establish the customer preferences thus responding to them (Armstrong and Kotler, 2000). On the other hand, the company suffers costs that arise from its investment in technology infrastructure. However, the use of technology has assisted the company in enhancing its innovativeness. Finally, its focus on innovation compels the company to suffer a cost in product modification. The benefits overweigh the costs thus making the company one of the market leaders in the industry.
The company operates in a competitive market thus compelling the company to offer products and services that satisfy its customers. The company works very hard in ensuring that its customers have a clear understanding of its products and those of its competitors as regards to quality and service level. The company enhances its position and market share by focusing on attracting more customers to its business as well as providing quality service to retain the existing customers. Marketing remains one of the company’s strategy for determining and forestalling customer needs hence taking the initiative to meet them.
Besides, Portakabin promotes its customer satisfaction by embracing innovation in its production. The company has a wide range of products that allow the customers to make chooses of the products that satisfy their needs. Innovation has assisted the company to provide products and services that differ from those of its competitors as it regards to their high quality and excellent customer service. This has played a great role in preventing its customers from switching to competitor products.
Portakabin involves its customers in marketing its products and services through a referral program. This is a type of marketing through which it requests its customers to refer others to the company if they are satisfied by the products and services provided by the company. This strategy has played a great role in enhancing the company’s market share which has further led to increased revenues and profitability of the company (Rogers, 2001).
Finally, the company uses pricing strategy to foster its success. Most of the company’s products and services are set at a competitive level. This is to mean that the company charges their products and services at a higher price than its competitors. However, this price is pegged to its products and services quality.
2.1 Answer
Political environment
The political factors under which Portakabin operates can change anytime. This is because both national and local governments have the power to change any policies and regulations regarding the business of the company. However, this is also a common effect to the company’s competitors.
Economic environment
Economic conditions such as the market structure, taxation, and interest rates keep on changing from time to time thus threatening the operations of the company. The UK economy is facing slow grow implying that interest and exchange rates remain vulnerable. The company should thus develop various strategies to overcome the unpredictable economic conditions. Thus, Portakabin needs to have up to date economic information both nationally and internationally to prepare on how to price its products and services.
Social environment
Portakabin Company remains one of the easily predictable companies socially. The company has a good reputation in areas where it operates due to its quality products and services. Portakabin has been able to meet the preferences of its target markets.
Technological Environmental
The success of the company’s business is subject to continuous innovation of its products and services. The company has adopted modern technologies in both production and marketing of its products. An outstanding example is the portable buildings it produces. Besides, the company uses online services to advertise and market its products. This has played a role in enhancing the uniqueness of the company’s products and services in the market.
2.2 Answer
Portakabin should focus much on geographical and psychographics segmentation for its target markets. Portakabin Company operates in B2B marketing implying that it uses target markets for its products. Geographical segmentation of its products and services is vital to ensure that it meets the preferences of customers in different geographical regions. The company operates in various nations thus making this segmentation important. Also, the company should focus on psychographics segmentation which involves a focus on the various group of customer’s lifestyle. Since the company operates in different countries then it is a clear that it has customers with varied lifestyle. It is thus vital for the company to consider the lifestyles of each target market to foster satisfaction to all.
2.3 Answer
The Portakabin Company needs to focus on multi-segment targeting which involves the use of two or more defined market segments and aim at strategizing on the segments. The company operates in various segments with differentiated needs. This implies that the company needs to treat each segment market with regards to its needs. This is only possible if the company uses multi-segment targeting. The strategy will play a vital role in allowing the company to develop various strategies that will meet the tastes of each segment. In so doing, Portakabin can enhance customer satisfaction in different market segments.
2.4 Answer
The purchasing power of Portakabin Company is subject to social, personal and psychological factors. Socially, the buyer behaviour of the company’s products and services is subject to quality. Many customers like the company’s products and are ever willing to purchase them because they are quality. Besides, the company operates in different market segments implying that the company provides products and services to people with different lifestyles. However, most of its products are customized to meet the needs of a specific market segment thus influencing buying behaviour positively.
2.5 Answer
The best positioning that the company needs to adopt for its portable buildings is the competitor approach which focuses on the competitiveness of the product or service. Under this strategy, Portakabin needs to focus on continuous improvement of its products and services to satisfy its customers. The focus on the customer needs is the best competitive tool through which the company can promote its competitiveness for its products (Majumdar, 1996).
3.1: Answer
Portakabin ensures sustainable competitive advantage by being innovative and properly applying the marketing mix. Like any other company, Portakabin starts its product life cycle by conducting a market research which helps the company to determine the changes it needs to make in its production and its services. The market research paves away for the idea generation by the marketing and production departments. Ideas regarding the expected changes are listed then screened based on objectives of the company and cost implications of each. When best ideas are selected, the production department takes the initiative to develop a concept and test it to determine its worthiness.
The next step involves analysing the chance to identify how it meets the needs of the business. The company through the marketing department conducts market testing for the company to determine the degree to which the customers want the product. This paves a way for technical implementation where the production department takes the initiative to produce the product as well as commercializing the product. In so doing, the company stands a good position of determining the better price for the product based on the results of its commercialization.
3.2 Answer
Portakabin distribution involves the use of business-to-business operation. In the distribution channels, the company uses 45 hire centers in the United Kingdom. This is to mean that customers have to move a short distance to get the services from the company. However, the company’s service teams are very close to the customers making transactions between the company and customers reliable and convenient. Business to Business distribution strategy applied by the company plays a great role in ensuring customer loyalty. Besides, it is a clear structure which promotes collaborative shopping hence assists in enhancing efficiency in the process.
The intermediaries in the company’s distribution channel assist in reducing the gap between the company and the customers. The nature of the products offered by Portakabin draws customers from very far. Thus, the intermediaries take the initiative of shortening the gap by delivering the products and services to the customers on behave of the company.
3.3 Answer
The key factor through which the Portakabin prices matches with its objectives and marketing conditions is its focus on quality. The objectives of the company involve the focus to provide quality products and services as well as promoting customer satisfaction levels. As a result, the company’s pricing strategy allows the company to set prices with regards to competition level as well as quality attached to the products. Its prices remain high than those of its competitors due to the quality and supportive services that the company offers. This implies that the company uses competitor based pricing strategy. Besides, the company also applies skimming pricing strategy under which it sets high prices for its products and reduces it as the taste and preferences of the product change later after introducing a new product in the market.
3.4 Answer
Product
Portakabin focuses on construction product for schools, commercials, and health centers among many others. The company is committed to enhancing the quality of its productions. Innovation strategy has assisted the company in promoting uniqueness in its production.
Promotion
Portakabin is ever committed to creating awareness of its products through its focus on different promotional activities. The most common methods used by the company to promote its goods and services include public relations, advertising, direct email and open days. Digital marketing remains one of the company’s most important promotional activities. For instance, the company uses its website to display its products and services as well as providing relevant information concerning its products. This is a promotional strategy because its customers have the access to information, products and services of the company. The information provided on the website acts as the main tool through which the company interacts with its customers. In fact, this is the most important promotional tool for the company. Advertisement through commercials and website acts as it’s above the line promotion. All the other promotional activities are below the line promotion.
Place
The distribution of the company is in line with the business to business operations. The distribution of the company’s products is subject to the market segment involved. In the case of business to customer segment, the company uses a direct distribution which involves both the company and the customers. However, the business to business operation segment which remains the most commonly used by the company, distribution follows intermediaries who help in reducing the gap between the company and the customers.
Pricing
Portakabin pricing strategy considers the quality of the product and services provided hence it is set at a competitive level. This is to mean that the company’s products and services prices remain high as compared to those of its competitors. However, this does not scare the customers since they look at the worth of the value of the products and services and find that the price is worth. The quality of its products has played a great role in helping the company to charge its prices.
3.5: Answer
Apart from the marketing mix used by the company that involves the product, price, promotion, and place, the company also uses other additional elements as discussed. The process used by the company is one extended marketing mix that the company uses to promote its products and services. The company is ever committed to conducting market research which helps it in discovering the changing tastes of the customers hence able to change its process to foster innovativeness. In so doing, the company has been able to provide unique products that help it compete in the market. Besides, the people employed in the company are talented in production and service delivery. The company’s personnel have been very key in the company’s success. The production and marketing teams play a great role in designing products that meet its customers’ preferences hence promoting the company’s success.
4.1 Answer
Portakabin market is divided into segments in which the segments are based on the customers it serves. The company uses two broad segments namely business to customers and business to business segments. The Business to Business segment is further divided into the education sector, hotels, commercial sectors and hospitals. The marketing mix for the two segments may differ significantly.
Marketing mixes for B2B
The product for this segment needs to vary depending on the needs of each. It is thus important for Portakabin to consider using customized products to ensure that each target market receives products that satisfy their taste and preferences.
The distribution strategy for the company in this segment should consider the long process involved in buying. This is to mean that the company needs to establish a longer channel of distribution where it involves intermediaries so as to reach all its customers in various regions.
According to (Crush, 2005) the pricing strategy for the company should be varied to meet different classes in this segment. There are various customers in this segment with differentiated needs thus compelling the company to use varied prices for its products.
Since large region and long buying process is involved the promotion strategy needs to meet the needs of the target markets. Therefore, there is a need for the company to consider using digital marketing and advertisement via commercials to ensure it reaches all its target groups.
Marketing mixes for B2C
The products for this segment need to be standardized since most of the customers in the segment have similar tastes and preferences. The company requires providing quality products and services that yield satisfaction to all customers.
Portakabin needs to focus on using various promotional strategies to communicate to its large market. Some of the promotional strategies that the company needs to use include direct selling, advertising, and public relations.
Besides, Portakabin requires using standardized pricing strategy since the customer involved in this segment have a similar taste for the products implying that similar products are sold. This is to mean that the price of the products remains the same across the entire segment.
Finally, the distribution of the products and services to the customers need to be very short and direct. This is to mean that there is no need for intermediaries in the distribution channel since the buying process is very short and is applicable for the direct distribution channel.
4.2 Answer
The differences between marketing products and services to business to business rather than business to consumer surround the nature of the products and services as well as the distance between the company and its consumers. According to Oyanedel (2005), the main goal of selling products to consumers rather than businesses is to make buyers aggressive and consistent. This indicates that it is product driven. Besides, it compels the company to maximize the value of transactions involved. Besides, B2C is more applicable for intangible and perishable products and services that require direct conduct between the producer and the customer. It is also applicable where the distance between the producer and customers is very long. This is the reason as to why Portakabin uses B2C distribution for those customers near to it and those who buy in small quantities. This is to mean that the B2C buying process is very short as compared to that of B2B.
On the other hand, the business focuses much on converting prospects into customers. A business uses this strategy is committed to developing a long lasting relationship with its customers. Besides, it concentrates more on focused market targets not just standardized markets. This is to mean that is considered heterogeneity and variability of products and services. Although B2C involves buying in small quantities, B2B used by Portakabin involves buying in large quantities. It is applicable where the distance between the producer and customers is long, and the nature of products involved is durable. Portakabin uses business to the business operation because it deals with durable products and services and its customers are very far from its business (Butow and Bollwitt., 2010).
4.3 Answer
International marketing has greater benefits as compared to domestic markets especially due to less restriction in international markets compared to high restriction in the domestic markets. For, instance, Portakabin Company benefits much from the European Union as compared to benefits that would accrue from a domestic market. Firstly, there is a large market for its products since many nations are involved hence able to provide a large market for the company’s product and services. This benefit cannot be enjoyed in a domestic market where the market is only from one nation. Besides, the competition in the international market is very stiff due to many investors providing similar and substitute products and services as compared to the domestic market. High competition in the international markets compels companies to deliver quality products and services so as to remain competitive in the market.
Surbhi (2015) argues that international marketing mix strategies allow a company like Portakabin to enjoy the economies of scale. For instance, the company can provide products with differing uniqueness depending on the needs of each market segment. This is to mean that the company can standardize and customize it products. This plays a great role in promoting customer satisfaction. Nonetheless, a common currency used in European Union market assists the company to overcome the issue of exchange rate exposure.
Furthermore, Portakabin can enjoy sharing and using the emerging technologies in the international market since they are accessible due to a large pool of nations involved. However, the company is not able to enjoy such a benefit in the domestic market since the use of technology remains limited.
Besides, the prices of the company’s products and services can be easily varied depending on the class of people available in the segments. However, this is difficult for the domestic marketing mix strategies because most of the customers are in the same class thus require price standardization. The customization of prices is one international marketing mix strategy that can assist the company to increase its profitability.
Furthermore, the distribution of the products in the international markets is complex since many customers from various nations and with varied tastes and preferences is involved. This is to mean that the company needs to develop various channels to enhance satisfaction to all of them. This makes distribution mix very difficult in international marketing than in domestic marketing where a small region is captured, and few customers are involved as well.
Finally, the promotion strategies that a company uses in international marketing need to be tailored to the large distance involved as compared to the short distance in the domestic market. Thus, the most commonly used promotional strategies available in the international marketing are advertising and digital marketing. This is because the Portakabin can reach a large geographical distance involved.
Conclusion
Portakabin is one of the most successful companies in its business. The company has taken various initiatives to ensure good performance for its business. Portakabin is ever committed to customer satisfaction through provision of quality products. The company is ever innovating unique products that meet the changing preferences of its customers. Continuous conduction of the market research has been key in assisting the company in modifying its products and services to remain competitive in the market. Besides, the company also uses promotion as a tool of providing up to date information to its customer thus promoting their satisfaction.
References List
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