Task 1
Introduction
A report on the marketing objectives and strategy that should promote long term customer loyalty as well as profit, sales and market share for Tip Top Accessories Oxford. The structure of the report can be divided into four sections. The first section is introduction where the report expresses its objectives. The second section is findings/discussions in which the report outlines the key concepts of marketing and also provide example of marketing oriented organization, which in this case is CAFÉ NERO UK, an Italian coffee company. Additionally, the report evaluates the advantages and cost of implementing the marketing approach in order to prosper TTA’s retail business. In the fourth section the report draws conclusion based on the findings and discussion. The last section consists of recommendations.
Findings/Discussion
There has been several definitions of marketing present in the literature. As defined by Business Essentials (2010), the concept of marketing can be understood by the approach that business should operate in a way to fulfill customer requirements efficiently and profitably. According to American Marketing Association, the process of marketing can be of planning and execution of the conception, pricing, promotion, and distribution of ideas, goods and services in order to form exchanges that satisfy and fulfill individual and organizational goals. The marketing concept consists of three elements: customer orientation, co-ordination of market activities and profit orientation. An organization that lacks customer centric approach in its business is less likely to achieve success at the market place. Marketing oriented organizations have gained competitive advantage over the years. According to Business Essentials (2010), the retail sector is highly competitive and low profit margin and wide research in consumer needs play a substantial role in marketing concepts.
The market-oriented organizations produce the products and services that meet the requirements of the customers (McDaniel et. al, 2009). These types of organizations always focus on research and development and also focus on long-term relationships with high customer satisfaction and loyalty. For example; CAFÉ NERO has introduced a gift card as a marketing approach to hold the customers for long term. The chain of café offers every 10th coffee absolutely free when a customer purchases nine cups of coffee within an extended period of time. Here it can be seen that the concept of 10th coffee free may encourage the customers to get the drinks from CAFÉ NERO in order to claim that free coffee. So, the market-oriented strategy of cafe may not only satisfy its customers through long-term relationships but also increasing its sales volume at the same time. As per the marketing literature, it is evident that a small amount of repeat purchase generates significant profit for any business (McDaniel et. al, 2009). This marketing orientation of CAFÉ NERO makes it a sales orientated company with an understanding of consumer behavior.
According to the case study, Tip Top Accessories Oxford deals in limited range of hats, scarves and umbrellas. Its customers are mostly over thirty years of age combining with a seasonal but vital student market. Applying the marketing theory to Tip Top Accessories retail store, customer retention is significant because it may attract new customers by word of mouth marketing and also cuts the cost of advertising.
There are many benefits associated with TTA for being marketing oriented company such as large sales volume as many people would get to know about products and promotions. Out of this large number of customers many may become TTA’s loyal customers. This marketing can be achieved by placing posters all around the store inside and outside to let, as many people know about theses promotions. The advantages of marketing at TTA outweigh the cost of it. The cost of such marketing techniques will be very low as it involves only creative skills transferred on a piece of paper.
Benefits of Marketing Costs of Marketing
1. More customer would know
2. Large sales volume
3. Building brand image
4. Loyal customers In- store marketing such as posters, creativity on walls,
Less profit margin for TTA
Effective promotional activities
Very less marketing cost
Conclusion/Summary
It can be concluded from above findings and discussion that implementation of marketing concept plays a vital part in the success of any retail business. Tip Top Accessories needs to increase its sales volume through applying the right marketing strategies that focus on fulfilling customer’s individual requirements along with the profitability of its retail business. The marketing concept applied at this retail store should contain all the three necessary elements. The retail business should tailor the products/services according to the customer’s needs in order to achieve high standard of customer satisfaction and customer loyalty. The business should also consider integrated marketing and profit through customer satisfaction. In order to remain competitive Tip Top Accessories store should continuously be in touch with the market trends. It should also focus on relationship marketing (RM) and total quality management (TQM), which involves good relations with customers and fulfilling their needs.
Recommendations
After evaluating the findings and drawing the conclusion, it is recommended that the retail establishment should enhance its range of portfolio and also implement visual merchandising (posters and banners) in its two stores in Oxford in order to attract, engage and motivate customers towards making a purchase. The retail business should also strive to extend its range of customers’ particularly different age groups. Overall, TTA should put efforts in adopting viable marketing approaches in order to remain competitive at the market place for example reaching out to the university and college students through website or distributing pamphlets. Furthermore, it is suggested that adopting such marketing strategies will be proved cost effective for TTA.
Task 2
Introduction
I as a Marketing Manager have been assigned a task to write a report on exploring the concepts of segmentation, targeting and positioning for Tip Top Accessories Oxford. The report is presented to the Managing Director of this retail business. The structure of the report has been divided into four sections. In the introduction section the report states its objectives. Findings/Discussion section analyses those macro and micro environmental factors affecting the marketing activities of Tip Top Accessories. Furthermore, the report explains the market segmentation and targeting strategy for Tip Top Accessories product range. Next, it also focuses on the importance of understanding buyer behavior and the need of repositioning Tip Top Accessories’ any one product. Then the report presents a conclusion and recommendations on the grounds of findings.
Findings/Discussions
The micro environmental factors can influence the marketing strategies of Tip Top Accessories in two ways. First the particular market in which the retail store is operating and second the internal features of this retail establishment (Broderick and Pickton, 2001). Its competitors in terms of pricing and product range can affect the retail business in Oxford. The stores’ internal resources can also impact the business in forming its strengths and weaknesses such as organizational culture and human resources. The internal structure of the retail store may be changing due to the stiff competition at the marketplace. The macro environmental factors consist of political/legal, economic, social/cultural, and technological factors (Broderick and Pickton, 2001). The retail store can identify opportunities and threats by examining the macro environment factors and as a result enable itself to form a proactive approach rather than reactive in taking any business initiatives.
Market segmentation can be understood by the diversification of the needs of the potential customers. The different buying attitudes of the customer can be categorized into segments, which require a different marketing approach for each segment (Kamakura and Wedal, 1999). The market for Tip Top Accessories can be segmented on the basis of its customer’s age as a differentiating factor. As explained in the case study, the majority of customers at Tip Top are over thirty, so there is a need of expanding various age groups of customers such as kids and teenager markets. Assuming that the retailer deals in summer hats and wooly hats and scarves, they can consider offering colorful and trendy scarves keeping in mind the kids and teenager segments. The market for scarves, hats and umbrellas can be segmented into three categories; children, teenagers and middle aged customers.
Differentiated marketing may prove vital in implementing targeting strategy (Kamakura and Wedal, 1999). Oxford is an international city surrounded by many schools and colleges so it can be assumed that there is an immense potential in teenage market segment. The store already has middle-aged loyal customers. Taking an umbrella as a product for kids and middle-aged market segment. It is likely that those customers over 30 years of age may have children. Therefore, the focus should be on selling colorful and trendy umbrellas besides sober colors for middle age customers. In this way TTA will be able to sell its product to various age of customers by adopting differentiated marketing techniques.
The understanding of buying behavior supports marketing mix, which satisfies the needs of the customers (Broderick and Pickton, 2001). Additionally it also promotes prediction for effectiveness of the marketing activities. For example, if a teenager would buy a wooly hat, they would be more likely to select a trendy hat as more of a fashion statement, on the other hand if a middle-aged person would purchase a hat, they may look for a wooly hat that would make them warmer regardless of its appearance. So TTA needs to understand the demographics of the region and the changing demands and buyers’ attitude. This may lead to an effective marketing approach for TTA.
Repositioning strategy is about changing the customer’s perception of a brand in terms of quality and price as a result of achieving competitive advantage (Business Essentials, 2010). Tip Top Accessories should really consider the prospects of repositioning the summer and wooly hats by redesigning it to be more stylish and appealing for all three chosen segments. Therefore, it may be able to change the customers’ perception about the brand as simple and traditional.
Conclusion/Summary
It has been found from the above literature that to gain competitive advantage the Tip Top Accessories needs to expand the target age group of customers to increase sales volume. As one of the retail stores is operating in the city center, there is an immense potential of selling these premium hats, scarves and umbrellas by targeting tourists in the town during summer, as they are being unaware of general price and likely to spend more. The report concludes that the retail business should focus more on creativity and redesigning of the products and strive to understand the needs and buying attitudes of customers with diverse cultural background.
Recommendations
I endorse the idea that shop floor sales assistant should accelerate impulse buying decisions among the store visitors by informing them about the unique features of hats, scarves etc. to persuade them for making purchase.
Task 3
Introduction
The report identifies and analyses the elements of extended marketing mix in relation to product and pricing. The structure of the report can be divided into four sections. The report begins with the introduction providing the purpose of writing it. In the next section findings/discussion, then the findings related to the product development of Tip Top Accessories in order to sustain competitive advantage. The report goes further to explain distribution policies for the retailer along with the pricing strategy to achieve organization’s profit and growth objectives. Next the report proposes various promotional activities and then discuses the significance of other elements of marketing mix in the future. Finally the report presents conclusion and recommendations.
Findings/Discussion
A product can be defined that satisfies a set of consumer’s needs. Product development can be understood as building a concept into production reality such as prototypes in order to match the demand of the market without causing excessive pressure on other units of organization’s systems (Salaimeh, 2008). As an example for teenage market segment the summer caps should be more designer and available in a range of color. The hats and scarves can be attached together to make them into one piece. The strap of the wooly hat should go all the way down covering the ears to wear it as a scarf. This kind of hat and scarf combination would appeal more to the teenage market. The hats or scarves should contain a blend of sophistication for middle-aged buyers so that they can wear it to their workplaces as well. The umbrellas can be developed into more like Disney characters for kids market.
The main aim of distribution is to promote purchase at TTA. It has been observed that effective and efficient distribution can play a crucial role in sustaining competitive advantage. The market penetration can be measured by distribution (Weitz and Jap, 1995). According to Business Essentials (2010), the five rights of distribution are the right product, in the right place, at the right time, in the right quantity, for the right price. TTA should ensure that the distribution channels are reliable and cost effective. The quantity of the product should match its demand in TTA’s store. It is of huge importance that there must be a wide range of size and color availability at Tip Top Accessories. The efficiency of distribution channels constitutes competitive advantage for TTA because if the distribution policies are not effective, the superior product or service is bound to fail in Oxford market. As per the available literature a three level channel structure perform a role of intermediary between consumers and manufacturer (Weitz and Jap,1995).
The pricing strategy should be competitive. The retailer needs to offer outstanding customer service in order to stand above the competition. Tip Top Accessories should adopt prestige-pricing approach because of its central location and exceptional customer service that can justify its higher prices. It has been evident that retailers dealing in differentiated products may be successful in setting the price above the competitors. Psychological pricing is quite effective when adopted as an odd pricing such as £9.95, it is believed that the customers are most likely to perceive it as £9. Multiple pricing has also proved to be an effective method when there is more than one product for one price. Customers tend to purchase in large quantity (Helsen and Kotabe, 2008).
Promotion can be termed as a communication between the seller and the buyer and also the most visible aspect of marketing that includes advertising and sales promotion (Clow and Baack, 2012). TTA may offer promotions over its range of products such as buy 1 get 1 half price or buy 3 for the price of 2. The in-store merchandising such as putting mannequins wearing the hats and scarves for men as well as kids. Promotional activities may include word of mouth, in-store, magazines and newspapers. The retail store should improve in store branding, sales floor communication, promotional signs and interior displays.
The importance of other marketing mix can be explained in terms of people, process and physical evidence. To have a skilled and trained staff brings competitive advantage to the business (Helsen and Kotabe, 2008). The sales staff at TTA needs interpersonal skills, aptitude in order to deliver an exceptional customer service. The effective delivery of services defines an efficient process to provide consistent service. The shop floor should be presentable to facilitate sales.
Conclusion/Summary
It has been observed that the four Ps: Product, Place, Promotion and Price play a vital role in TTA’s business growth. From the above findings and discussion it can be said that effective marketing and competitive pricing for umbrellas during extreme hot and rainy weather may prove a profitable business. Similarly, hats and scarves can be promoted during winter season with little bit of trendy touch on them as Oxford has young population. In terms of items for special occasions TTA can do networking with all the colleges in Oxford during graduation ceremony or university balls. The other three extended marketing mix elements People, Process and Physical Evidence are of great significance to Tip Top Accessories. The qualified
Staff, market awareness and visual merchandising (in-store decoration and creativity) may uplift TTA’s business.
Recommendations
I suggest that the efforts should be made in forming a product differentiation in terms of quality & uniqueness and developing an understanding of consumer behavior to respond the market’s challenges appropriately.
References
Broderick, A. and Pickton, D. (2001) Integrated Marketing Communications. Financial Times. Prentice Hall.
Business Essentials: Marketing Principles (2nd ed.). (2010). London: BPP Learning Media Ltd.
CAFÉ NERO, 2012 [Online] Available at: http://www.caffenero.com/default.aspx?lang=uk [Accessed 27 Jan 2013]
Clow, K. and Baack, D. (2012) Integrated Advertising, Promotion, and Marketing Communications. 4th ed. Pearson
Helsen, K. and Kotabe, M. (2008) Global Marketing Management. 2nd ed. JOHN WILEY & SONS INC.
Kamakura, W. and Wedal, M. (1999) Market Segmentation: Conceptual and Methodological Foundations.2nd ed. International Series in Quantitative Marketing. Kluwer Academic Publishers.
McDaniel et. al (2009) Essentials of Marketing. Mason: SOUTH-WESTERN CENGAGE
Salaimeh, M. (2008) Marketing Concepts; Segmentation and the Product Development Process. European Journal of Scientific Research. Vol. 23 (3), pp. 454-457
Weitz, B. and Jap, S. (1995) Relationship Marketing and Distribution Channels. Journal of the Academy of Marketing. Vol. 23 (4), pp.305-320
Bibliography
Taylor (2013) Six principles for great content marketing. [Online] available at: econsultancy.com/uk/blog [Accessed on 15 Aug, 2013].
Times Business Case Studies LLP (2013) Marketing Theory. The Principles of Marketing. [Online] available at: businesscasestudies.co.uk [Accessed on 14 Aug, 2013]
Wikiversity (2013) Principles of Marketing. [Online] available at: en.wikiversity.org/wiki/ [Accessed on 12 Aug, 2013].
Presentation
Differences between B2B and B2C
There is no need for a place in B2B whereas there is an essential requirement of a place in B2C to get an access to the customers.
B2B depends on seminars, conferences, social events and media for promotion whereas B2C uses various promotional techniques to directly access the customers.
The product of B2B can be more complex and comes with training package whereas the B2C products are more user friendly.
B2C is more about giving credit to the other party for certain period whereas B2C involves price discounts and cash immediately.
Tip Top Accessories Entering into International Market
The selected foreign market is France
Reasons for selecting France for business expansion
Profitable market in terms of tourism (Most favorite tourist destination)
Connecting to the UK through Channel Tunnel
Increased trade between the two countries
Marketing Strategy in France
The product mix should be similar in France as it is in the UK because of similar fashion trends due to proximity.
Tip Top should adopt the similar promotion mix for French market
There seems to be a difference between the pricing mix for two countries considering the supply chain management and packaging of product. The profit margin should be according the French market environment and not lesser than the UK.
