Introduction 3
Analysis of the marketing environment and the macro environment factors that with illustration of the factors that might affect their business 3
Basic buyer behavior models and the way consumers might make decisions about purchasing bionic legs 6
The requirements of a well-defined market segments 7
The need to position by the product for each target segments by manipulation of variables of marketing mix 8
Conclusion 12
Reference list 12
Introduction
Marketing forms an integral part within the operative mandate of the organization. As a tool incorporated towards raising product awareness coupled to enhancing sales within an organization, marketing is highly dynamic and involving. Hence, it is imperative that organizations comprehend the holistic aspects that circumvent the marketing function. Thus, this paper will evaluate marketing as per the case questions in reference to MBC in its development of its bionic limbs.
Analysis of the marketing environment and the macro environment factors that with an illustration of the factors that might affect their business
Firstly, marketing is a highly involving process within the organizational mandate which requires a holistic involvement of the varied departments. Through involvement of the diverse organizational departments, the marketing goals, targets and objectives are met. Hence, Bradley (2010 p157-192) asserts that the marketing environment at MBC comprises of the following elements;
- Product/service creation: denotes a harmonized process in which the organizational stakeholders operate towards providing the consumer market with products and services that are value based.
- Communication: the communication process in reference toentails a descriptive mandate in which information on the product or service is conveyed to the consumer market and feedback obtained from the clients
- Deliverance of service or product; optimization of value through effective provision of goods and services to the consumer market
- Exchange of goods and services: as the culminating aspect within the marketing process, it entails trading value for goods and services provided.
Macro environmental factors
Thus, from the analysis of the marketing environment marketing environment at MBC, there are various macro environmental factors that affect its operations. Bradley (2010 p157-192) emphasizes that macro environmental factors denote issues that are beyond the scope of control. Hence, for an organization to sustain performance, it is imperative they acknowledge the macro environmental factors that influence marketing decisions. Thus, a situational analysis through the incorporation of both PEST and SWOT analysis of the environment of operation is plausible towards comprehending the various factors that may impede on its operations. Thus, as the first tool, PEST analysis entails the analysis of the political, economic, social and technological factors that impact on organizational performance. Hence, a PEST analysis of MBC is as follows:
- Political factors: political factors such as political instability impede on the marketing decisions of the organization. In instances that political turmoil prevails across different factions, a company should market its products with the aim of exuding indifference in operations.
- Economic factors: one of the most significant aspects that impede on the marketing decisions is the prevailing economic frontier. Within an economy that is evidenced by recession, it is imperative that the organization markets its products within a cost effective mandate.
- Social factors: social factors denote aspects such as language, consumer behavior, tastes and preference of the consumer market. Hence, as a clear example, language is an aspect of concern for an internationally based organization such as MBC. Admittedly, the aforesaid organization should market their products within a language that suits the differentiated markets in which they operate.
- Technological factors: technological growth highly impactful on the marketing decisions of the organization. As a clear example, technological growth within the communication frontier has led to the emergence of online business. Thus, for MBC to sustain performance, it is imperative to inculcate online marketing within their operative mandate.
On the other hand, SWOT analysis denotes an examination of organizational strengths, weaknesses, opportunities, and threats. An SWOT analysis gives way to a more comprehensive analysis of both the internal and external factors that impact on MBC. Thus, an SWOT analysis is as follows:
Strengths
The company has a cutting edge bionic limb that is highly differentiated within the market or operation. Cutting edge bionic limb is a core competency of the organization. On the other hand, the prevailing environment of operation is highly open in regards to telecommunication growth.
Weaknesses
Distribution of the bionic limbs requires huge investment into distribution that entails higher levels of service inculcation. The disparity in tastes and preferences in regards to bionic arms will pose a daunting environment for the organization to maintain a highly profitable distribution strategy.
Opportunities
The global market poses an avenue that is highly under-serviced in regards to the bionic limbs. Thus, a venture into the market is bound to generate a higher revenue yield. On the other hand, the company exudes a longer product lifecycle which is imperative towards proper product and service delivery levels.
Threats
Regulatory environment coupled with the prospect of reduced government reimbursement for the extensive research and development undertaken by the organization. Additionally, there are evident economies of scale within the international environment that poses a daunting environment in competing for the market share.
Basic buyer behavior models and the way consumers might make decisions about purchasing bionic legs
Thus, from the analysis of the consumer buyer behaviour, there are various models that can be incorporated towards the evaluation of consumers. Thus, a clear buyer behaviour model is a black box model. The black box model denotes an interaction of the various stimuli, consumer characteristics and customer response. Accordingly, the black box model focuses on the relation prevailing between the evident stimuli and the response that emerges from the customer. The marketing stimuli, in reference to Sandhusen (2008 p79-105) are planned and processed by the organization while the environmental stimuli entails the social factors that influence consumer behaviour. Thus, the black box model denotes the following processes:
Buyer behaviour as per Nigel (2012 p98-156) denotes the varied actions and reactions which are exhibited by an individual within a marketing or operational mandate. Affirmatively, buyer behaviour is influenced by both internal and external factors that determine the decision-making initiatives of a buyer. Internal factors emanate from the individual beliefs, values, and character. On the other hand, external factors include aspects such as social class, peer influence, laws and so forth. Thus as a clear example, the prevailing laws within a country impact on the buying behaviour. From the evaluation of Unilever, the concept of the pollution tax coupled with environmental sustainability has become a prevailing aspect of concern. In UK, pollution tax has led to the need for companies to market themselves as environmentally sensitive organizations directed towards ensuring environmental sustainability. Nigel (2012 p98-156) asserts that within the UK market, customer awareness and sensitivity towards environmental sustainability has influenced the buying behavior. Thus, for Unilever to ensure and spark positive sales, it should maintain its environmental sustainability approach.
The requirements of a well-defined market segments
A well-defined market segment emanates from clarity in regards to segmentation strategy that MBC can incorporate. Thus, from the analysis of the organization, the various approaches in determining their segment are as follows.
Segmentation is directed towards dividing the different areas of operation based on the consumer behaviour or similar characteristics exuded in the market. Hence, there are three main segmentation criteria that can be used for different products in different markets which include;
- Behavioral segmentation: Bradley (2010 p157-192) asserts that the behavioral segmentation is based on the evaluation of the benefits that may be accrued by the different consumer wants in the diverse markets. Accordingly, behavioral segmentation in regards to MBC should be based on tastes, preferences, and the clientele perception of the product.
- Demographic segmentation: Bradley (2010 p157-192) affirms that the demographic segmentation divides the market based on the ages, races and ethnic backgrounds of the consumer market. Through segmentation of the consumer market based on the demographic characteristics, MBC will positions its products within a more customer-sensitive approach.
- Geographic segmentation: geographical segmentation is focused on the locational aspects of the consumers and the strategies that the organization will incorporate. Through geographical segmentation, MBC has extensive knowledge of the consumer based statistics and data available regarding disabled individuals with the need for the bionic limbs.
The need to position by the product for each target segments by manipulation of variables of the marketing mix
Thus, from the analysis of MBC, it is imperative that it inculcates proper marketing mix towards meeting the needs of the various segments evaluated above. Thus, from the analysis of the segments, the plausible marketing mix for the segments is as follows:
Product
Successful business operations are based on organizational tactical approach especially in their development of products. Accordingly, different organizations develop their products based on varied approaches that sustain competitive advantage. Thus among the various approaches that an organization can incorporate to sustain competitive advantage in its launch of the bionic limbs is as follows;
- cost effective approach
The cost effective approach is directed towards providing products that are directed towards being affordable. Within the UK environment, consumer spending has been reducing notably emanating from the prevailing economic environment (Silk 2011 p9-57). Thus, for MBC to sustain competitive advantage it should provide goods and services that are extensively affordable to ensure they maintain revenue yield.
- product differentiation approach
Branding coupled with differentiated packaging of products within a similar market is a tactical approach towards sustaining competitive edge (Silk 2011 p9-57). Thus, from the evaluation of the different organizations, inculcation of branding coupled with product differentiation sustains diversity of products and services delivered to consumers. Furthermore, companies that invest into branding and differentiation of products sustain performance.
Price
Price setting to meet organizational objectives is based on six steps that MBC should invest into;
- Setting pricing objectives: varied firms want to accomplish diverse goals which are within the pricing strategies. Accordingly, a business pricing strategies should be based on various objectives such as maximization of profits, increase market share or prestige pricing
- Estimation of demand: after the statement of the pricing objectives, it is noteworthy that the organization approximates the demands that may prevail within the price range. Through determination of demand, the company can determine the level of products to provide.
- Determination of costs: after estimation of demand, it is advisable that the organization determines the costs that will be incurred within the production mandate stated.
- Analysis of the factors that affect the pricing decision: as the fourth step, the organization should determine the factors that will play an integral role in their pricing decisions such as profitability, losses and so forth.
- Setting of initial prices: the organization should thus set the initial market price that will be flexible depending on the consumer trends evidenced.
- Offer and make proper price adjustments: through the demand and revenue accrued, the organization can make any adjustments to suit the prevalent demands.
Place
Distribution entails the provision of goods and services to the customers within a flexible mandate that ensures accessibility. Thus, there are two main distributional approaches that can be incorporated by MBC to provide customer convenience:
- intensive distribution approach
MBC in ensuring the availability of bionic limbs, it should sell its products and services within as many outlets as possible. The intensive distribution approach is incorporated to enhance convenience offerings. Nigel (2012 p98-156) asserts that customers can buy on the spot without much shopping around. As a clear example, soft drinks and newspapers can be sold in vast regions.
- Selective distribution approach
The selective distribution approach comprises selling products within selected or specific locations. As a clear example, pharmaceutical products can be bought in varied outlets such as Tesco, Sainsbury and so forth. Through selling products in different outlets, an MBC can appeal to the target markets.
Promotion
Promotional activities are based on the different marketing objectives prevailing within an organization. Admittedly, the promotional activity is based on the tactical mandate of the organization. Hence, an organization with a marketing objective evident from MBC of enhancing brand awareness it can incorporate the above the line promotional approach.
Above the line promotional approach
The above the line promotional approach in reference to Nigel (2012 p98-156) is directed towards reaching a wider mass base without enhanced emphasis on market segmentation. Hence, an organization such as MBC with a marketing objective of increasing product or service awareness can incorporate various above the line tools (Silk 2011 p9-57). Thus, above the line promotional approach is focused on using various available media such as television, social media, billboards and radios which reach the mass market.
Thus, through an analysis of the marketing mix at MBC, the organization should incorporate a proper positioning approach to sustaining customer acquisition. First and foremost, positioning comprises of tailoring a product or service to ensure uniqueness and distinct from the rivals. For a business to sustain its position within a dynamically competitive and cutthroat market, it should invest significantly into various positioning approaches. Thus, from the evaluation of MBC, it offers highly dynamic and unique bionic limbs. The bionic limbs focus on ensuring that the positioning approach focuses on the target segment. MBC bionic limbs can be positioned as affordable, and quality oriented. Most significantly, within the commencement of operations, the organization can incorporate the affordability approach in positioning to sustain revenue yield coupled with sales.
Conclusion
Marketing from the above evaluation entails diverse aspects that impact on the operations of the business. It is imperative that MBC comprehends and inculcates marketing competence to sustain revenue yield. Extensive investment into marketing principles ensures extensive and plausible revenue yield from its bionic limbs.
Reference list
Baker, S. 2004. New consumer marketing: Managing a living demand system. New York: John Wiley & sons.
Bradley, N. 2010. Marketing research: Tools & techniques. London: Oxford University Press.
Nigel, F. 2012. Market-led strategic change. London: Routledge.
Plunkett, J. W. 2008. Plunkett's retail industry almanac 2009 (e-book): Retail industry market research, statistics, trends and leading companies. Houston: Plunkett Research, Ltd.
Porter, M.E. 2004. Competitive strategy: techniques for analyzing industries and competitors. New York; London: Free Press
Pride, W., & Ferrell, O. C. 2004. Marketing. California: Cengage learning.
Sandhusen, R. L. 2008. Marketing. London: Barron's Educational Series.
Silk, A. 2011. What is marketing? London: Harvard business press.
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