Introduction
Marketing represents a form of communication between business establishments and the consumers with the aim of selling or introducing new products and services. The success of a company’s sales therefore directly relates to the marketing strategies it employs. Through this essay, the author looks at the principle of marketing regarding Portakabin as a major company involved in the promotion of its products. The essay also highlights the elements of the marketing process, the costs and benefits of marketing orientation, the micro and macro environmental factors that affect business, and market segmentation for the company. Additionally, the competitive advantage for the firm through pricing, distribution, promotional activity are discussed.
1.1. Marketing
At the primary level, marketing refers to the phenomenon of a business determining what the value of their product or service is and then making the information available to the customers as stated by Canada Business Network (2016, p. 1). Also, the process entails the management of the movement of goods and services from being concepts and ideas to the end product usable by the consumers. The coordination of marketing activities requires a strategy for the promotion of the product getting developed and implemented (Canada Business Network, 2016, p. 1).
For the Portakabin Company, which is a business to business marketer introducing a new product, the elements of the marketing process include; market and environment analysis, establishing sales strategies that are consumer driven, creating value for the customers, maintaining the satisfaction of the users, and creating profits for the company. Market and environment analysis involve the establishment systematically gathering data to get used in the planning and execution of the required processes to meet the needs of the consumers. The institutions conduct an assessment of the needs of the consumers for a complete understanding of what would satisfy their wants as stated by Goi (2009, p. 6). Establishing consumer based sales strategies is whereby the company adopts a strategy that is unique for the marketing of the products to the target audience.
The strategy should benefit both the consumers and the company after conducting an analysis of the market segment to establish those who would get interested in the new product (Smith and Edwards, 2010, p. 1). Creating value for the consumers will involve the Portakabin Company coming up with a means of ensuring that the consumers achieve value for their money. Additionally, there is the need for the adoption of methods of promotion that give an accurate representation of the goods or services so that customers do not get cheated. The 4 Ps get adhered to in this phase.
Maintaining the satisfaction of consumers means that their needs and expectations get continually satisfied after the introduction of the new commodity into the market. Such helps with the expansion of the market share so that new customers get regularly attracted while old ones get retained because of the high quality of goods and services. When all the other elements necessary for the process of marketing operate in a smooth manner, then profitability is experienced as the result (Smith and Edwards, 2010). Profitability means that the consumers are getting value for their money, which ultimately wins their loyalty to the product.
1.2. The Advantages and Costs of a Marketing Orientation
For Portakabin that is introducing a new product into the market, a marketing orientation would be beneficial in several ways. Through marketing orientation, the company would achieve responsiveness which means that the provision of goods and services get delivered promptly following the needs of the target market. Responsiveness is accomplished through the collection and analysis of market data on the needs of potential buyers. Data gathering and analysis also helps in ensuring that the products offered are accurate. Also, market orientation would assist the company with steadily improving the quality of its products because of the dynamic nature of the construction market. Such improvements that are a consistent result from marketing orientation being a tool that promotes the culture of experimentation in organizations.
Such experimentations ensure that the current and future needs of the customers get catered for through research. Also, the strategy is necessary since it helps with the provision of goods and services that are emphatic on the needs of the customers. Also, marketing orientation is advantageous because it allows for adaptability whereby through constant engagement with their clients it is possible to adjust or develop products that satisfy the desires of the customers as stated by Kokemuller (2016, p. 1). The costs of marketing orientation for the company, on the other hand, include the expenses involved in the carrying out of market surveys to establish the needs of the target market.
Technological advances also bring about the challenge to quickly upgrade the product to meet the features of quality that a technologically savvy market would expect. Another potential drawback may include the failure to put more emphasis on the improvement of the processes of production. Such may result from Portakabin not keeping up to date with new development methods involved with the construction industry’s processes. Such may lower the efficiency of production leading to a loss of the customers (Kokemuller, 2016, p. 1). External influences as a result of market orientation may also affect the company’s profitability as a consequence of the inability to adapt to market dynamics. Also, costs get increased when the product values get raised as a result of extensive and costly research.
2.1. Macro and Micro Environmental Factors that Influence Marketing Decisions of Portakabin.
According to Barbu and Orzan (2012, p. 1) companies are associated with the general public, suppliers, the workforce, the government, and financial institutions at levels that differ and therefore affecting how they conduct their operations. Micro and macro environmental factors cannot get controlled by the marketers, but they still exert an influence on the decisions made when establishing a strategic approach to marketing. For Portakabin, which is a major company, the microenvironment factors would, therefore, include the suppliers, the resellers, the customers, the competitors, and the general public. The suppliers impact the business by holding the power of determining when goods and services reach the customer. The resellers impact on the success of Portakabin by leveraging how the final products get marketed and sold in the market while the consumer influences how products get marketed and sold based on their purchasing power. Competitors control the pricing and product differentiation methods adopted by Portakabin while the general public expects that their needs get satisfied through products that get tailored to their requirements.
The macro environmental factors that affect Portakabin include demographic forces, economic factors, natural and physical forces, and technological factors. Additionally, political and legal forces, as well as social and cultural factors, are macro environmental factors. These macro environmental influences affect the marketing strategy of businesses on a larger scale and need consideration during the marketing decision-making processes (Barbu and Orzan, 2012, p. 7).
2.2. Segmentation Criteria
The key to the success of a strategy for marketing depends on segmentation, targeting, and positioning which means that a marketer identifies a section of the market with given needs. The marketer then moves in to satisfy the identified needs in a manner that appeals and offers better services that the market competitors present as stated by Lynn (2011, p. 3). The effectiveness of segmenting a market is dependent on the degree to which a business reaches a portion that can get measured, accessed, substantiated and differentiated (Fuller, Hanlan, and Wilde, 2005, p. 2). Accessibility means that the marketing company can reach and offer services that are adequate for the identified segment.
A substantial part is one that has many people and can, therefore, reap the maximum profit through the adoption of a marketing mix that is specific to the needs of that segment. Lynn (2011, p. 4) explained that segmentation criteria include demographic variables, geographic variables, psychographic variables, and behaviors. Demographic segmentation takes into account the age, gender, education, and income of the targeted market while the geographic approach considers a nation, state, region, and the type of neighborhood. Psychographic variables include attitudes, opinions, interest, and values while behaviors include media habits, purchase frequency, brand loyalty, and the usage of a channel.
For Portakabin products, the most appropriate segmentation criteria would include the geographical principle and the behavioral approach. Geographic segmentation is appropriate because the company needs to target locations in which there is a boom in the construction industry and areas that are adopting the use of technology in construction. This approach is also critical since the company is introducing a new approach based on technology. Behaviour segmentation, on the other hand, is necessary to ensure that the targeted consumers are loyal to the brand and may facilitate the process of attracting new clients and fulfilling a business to business marketing approach.
2.3. Targeting Strategy
Concerning marketing segmentation implies the process of splitting the available group of customers according to their shared characteristics that may be internal or external. After the course of segmenting a market is completed the firm then chooses the most appropriate audience to which to communicate the message of marketing (Kolb, 2016, p. 1). The three most important strategies for targeting consumers are undifferentiated, concentrated, and differentiated. Undifferentiated segmentation refers to when the same promotional message is sent to everyone, for example, the placing of an advertisement on a historic site in a newspaper that has a wider readership. Concentrated targeting involves the designing of messages of promotion to communicate the advantages of a product or service to a single particular segment. Differentiated targeting is when more than one message that delivers different benefits of a product get conveyed to the audience (Kolb, 2016, p.1).
The most appropriate targeting strategy for Portakabin’s Yorkon Building system that is in the introduction phase in the market is differentiated targeting. The approach is suitable since the company aims at the growth of the product while taking into account the need for the protection of the existing share of the market. Also, the approach is necessary because the company is large and can leverage into other target markets given its assets and capabilities. Also, because of the diverse consumer needs in the building sector, there is the need for the new product to get marketed using different messages that can reach a big section of the market.
2.4. How Buyer Behaviours Affect Marketing Activities
Buyer behaviors refer to the process of making decisions and the acts of individuals involved in the buying and use of products and services (Sharma, 2014, p. 833). There is the need for the understanding of why consumers make certain purchases and not others, the factors that influence the patterns of buying, and, the changing factors within the society. Sharma, (2014, p. 834) explains that the success of a firm gets profoundly influenced by the reactions that consumers have on their marketing strategies. The concept of marketing puts emphasis on creating a market mix that aims at the satisfaction of buyer’s needs, making it necessary for the analysis of the what, where, when, and how consumers purchase.
The types of consumer buying behaviors are; routine response or programmed behavior, limited decision making, extensive decision making and impulse buying. The acquisition of the same product or service does not necessarily mean that the habits of buying remain intact. Goods and services may shift to the next category from a previous one. Additionally, cultural factors influence the behaviors of a buyer because of societal norms associated with the use of certain products. Also, customers buy products based on how they get influenced by social factors like reference groups, family, status, and role. Personal factors like age, occupation, economic situations, lifestyle, and personality also has a bearing on the behaviors of purchasing, for example, certain products such as toys are meant for children and will not get bought to get used by adults.
Psychological traits such as how an individual is motivated, the perceptions, beliefs, and attitudes harbored on a product also determines whether an individual purchases an item. For Portakabin, the buying behaviors of the consumers may get influenced by its vantage position in the market whereby individuals may buy its products based on the popularity of the firm. The products of the business, therefore, get bought because of its position in the market.
2.5. New Positioning
Market positioning refers to the efforts that companies make to influence the perceptions of consumers on a product or brand about the brand belonging to competitors so that they gain an advantageous position with the buyers. Ashe-Edmunds (2016, p. 1) stated that the strategies for market positioning include; particular demography, low-price, high price, distribution, and affinity strategies. The Specific demographic approach implies that a firm makes products that get used by a section of the society, for example, the manufacturing of deodorants to get used specifically by women. Low price positioning is when a company offers products that are much affordable to the consumers while the high-price strategy involves the pricing of goods or services higher so that they get perceived as more valuable.
Distribution positioning is when a company makes its products available to markets where its competitors have not yet reached while affinity refers to the exploitation of a customer base with similar characteristics depending on their common traits. (Ashe-Edmunds, 2016, p. 1). Therefore, Portakabin needs to adopt the Distribution positioning strategy to exploit the building construction market for its Yorkon Building system product so as to enable the penetration of markets that have not gotten infiltrated by the competitors. This strategy will also make it possible to introduce the new product to a wider customer base.
3.1. How Products are developed to Sustain Competitive Advantage
The literature on the New Product Development puts an emphasis on the critical role of introducing new products in the market for the continued success of business. New products contribute to the growth of firms, influences the performance of profits, and helps with the process of business planning as stated by Bhuiyan (2011, p. 1). The development of a new product includes steps such as; the development of an idea or concept, evaluation of the plan, product development, testing, and launching on the market. The formulation of the concept may be complex and involves coming up with ideas that are already existent in the market or innovations through brainstorming. The organization then conducts a market research on the idea to establish whether there is a demand for that type of product and what is required to meet the needs of the market (Bhuiyan, 2011, p. 1). The development stage involves the coming up with different prototypes so that a product that suits the needs of the target market.
The products are then tested for their suitability before getting introduced for the customers. The analysis is then conducted to evaluate the feedback from the potential consumers for any necessary changes to be effected, after which the product is introduced into the market. The product lifecycle gets associated with shifts in the situation of marketing that have an impact on the strategy of marketing and the marketing mix. The introduction stage may present as the most expensive to the organization because of research, testing, and marketing processes. The growth stage is when the product gets optimally profitable through sales making it possible for further investments. The maturity stage is when the product is established, and the manufacturer now aims at retaining the built share of the market. The decline phase occurs when the products market starts to shrink because of a saturated market or the loss of customers to competitors.
Therefore, to sustain a competitive advantage, thorough market research is required before developing a product. The development of goods of the same quality and offering them at a lower price is important for a competitive advantage. Through research, companies can also offer products that are differentiated from those of the competitors by uniqueness while serving the same purpose. Also, companies focus on a limited part of the market so that they fully understand and attend to the needs of their target markets.
3.2. Distribution for Customer Convenience
Decisions concerning the distribution of goods and services must focus on the availability of the products or services in quantities that are adequate and places that the customers can easily access. The costs of distribution should also remain as low as possible so that the prices of the commodities do not get inflated. Convenience is also achieved through the selection of appropriate dealers or wholesalers who also function as intermediaries to make an extensive network of distribution for easy accessibility. The intermediaries, therefore, ensure that the products are widely available and accessible to the purchasers. Also, depending on the pricing of commodities, customers find it convenient if the distribution is accomplished through exclusive dealers with select outlets.
3.3. How prices are set to reflect Portakabin’s objectives and market conditions.
The Portakabin is a market leader in its line of products and is, therefore, able to determine market prices that meet its goals. The prices set by the company are reflective of the value that consumers associate with its products as one of the market leaders operating in six countries across the world. The company also determines its prices depending on the production costs such that it achieves productivity meet the overhead costs. Because the company’s strategy is to be a price leader it offers prices, that facilitate the achievement of the status of a market share leader. Also, the prices offered are based on product portfolio mix so that Portakabin’s prices are indicative of similar differences in plans and options available. Also, since the company aims at having a good relationship with its distributors the prices get set to enable the resellers to earn margins that are sufficient. Prices also get set depending on the status of the economy and the prices offered by competing companies such that customers get retained.
3.4. How promotional activity of Portakabin is intergraded to achieve the marketing objective
Portakabin utilizes a combination of marketing strategies to ensure that marketing objectives get met. According to Mack (2016, p. 1), promotional activities are important for an organization to reach its customers and is one of the 4 Ps of marketing. Portakabin utilizes personal selling, advertisements, sales promotion, and public relations to appeal to its clients and also attract new customers. Advertisements get aired in televisions and over the internet to announce product prices, the location of the goods, and the quality of the products so that customers have the information needed concerning the firm. The company achieves personal selling through the use of salespeople who are responsible for the persuasion of clients. Sales promotion involves Portakabin using temporary promotional incentives that make its products more appealing to buyers while public relations occurs when loyal customers recommend other customers for the company’s products.
3.5. Analysis of additional elements of the extended marketing mix for BT and their significance
The additional elements of the marketing mix are the extra P in the marketing mix making it 7Ps marketing mix. The additional elements include people, processes, and physical evidence. People are all the parties involved in the whole process that a product undergoes before reaching customers. Having the right people is critical from management to the sales personnel. Processes are the delivery service that the company offers as they take the products to customers. Physical Evidence is involved in both service and goods sector because the tangible evidence is critical for customers to see what they are paying for.
4.1. Plan marketing mixes for two different segments of consumer markets of Portakabin
The marketing mixes that the company can apply in two different segments is the use of process and physical evidence. The process is the way or manner through which products undergo to reach final customers. If the process is attractive to the customers, it will be good since different segments like that of gender, men would be attracted to women if they deliver products to them. Therefore, for a gender-based segment, using opposite sex to deliver products is indeed the best option. Physical evidence is the totality of the product. Making a product visible to the customer by either the packaging or structure of the company would enable customers to differentiate your product from that of other companies.
4.2. Illustrate differences in marketing products and services to business rather than consumers.
A product is different from a service in many ways. These indifferences include the tangibility. Products are tangible and are d capable of inspecting and giving a sample to the buyer unlike services, which are based on belief. In the delivery mode, customers would come for services while in goods, the goods are taken to the customers. In terms of quality delivery, services depend on the person offering the service if he or she is an expert or not while the quality of a products depends on the manufacturer.
4.3. How international marketing differs from domestic marketing
International marketing is done in the international levels while the domestic marketing is done with the local boundaries where the company is located. International marketing covers wide area unlike domestic marketing, which covers a very small area. In local marketing, there are fewer government influences while international marketing is influenced fully by the government through polices that govern this activity and other law. In terms of capital, international marketing requires a vast capital to cover a wide area, unlike domestic marketing.
Conclusion
The process of marketing involves the business coordinating the 4 P’s involved in marketing. The coordination occurs by the Product getting identified, selected and developed, the determination of the price, and choosing a distribution channel to ensure that the product is availed at the customer’s place. Marketing is an essential activity that facilitates the movement of goods from the manufacturer to the user. However, marketing also has its costs to the business because it requires substantial investments for success. Micro and macro-environmental factors such as the customers and economic forces influence marketing. For a major company like Portakabin, it is essential that the marketing, pricing, and promotional activities get designed in a manner that meets the objectives of the firm and the prevailing market conditions.
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