Q

Marketing and 7Ps - Learn Marketing and Competitiveness

Home, - Value Creation for Customers in Business Environment

Value Creation For Customers In Business Environment
Marketing signifies the specific instruction set, activities or procedures for promoting the purchase or sales of a product. It is a phenomenon representing an organisation’s customer focus (Grönroos, 2006). The present study focuses on the concept of marketing and the 7Ps associated with the marketing mix adopted by various companies in present times. At the same time, it explores the impact of SWOT Analysis on a business. Furthermore, it describes the Ansoff Growth Matrix and its uses for policies related to growth. Finally, it discusses the concept of digital marketing for business performance improvement. 
Marketing and 7Ps
What is meant by marketing
Marketing refers to the activity or procedurefor advertising and showing a company’s products optimally. It encompasses the communication, advertisement, selling, and delivery of the products to a business or the consumers. Scholars described it as the activities occurring at the interface between the customers and an organisation (Blythe and Martin, 2019). 
The 7 Ps
The 7ps of marketing are product, promotion, people, price, place, physical evidence, and process (Jain, 2013). The best strategy regarding the product requires meeting the demand or desire of the customer. The product’s effective distribution is required for the target customer’s attention for finding it easier regarding purchase. Therefore, emphasizing the place related to the showcasing of the product is indispensable. The Products also need to represent a great value related to money. However, a fundamental feature of the marketing concept is consumers' interest in paying more amount of money for the products offering a great value (Boonpradub and Thechatakerng, 2015). Therefore, the price of the service or products needs the perceived value’s reflection and simultaneously correlates with its budget. 
Promotion incorporates advertising, personal selling, public relations, social media usage, and many others.Such tools put across the organisational message to the proper audiences in an appreciable way (Boonpradub and Thechatakerng, 2015). The appeal of the products to customers’ emotions plays a pivotal role in their purchasing decision. For example, the "#vegansausageroll" campaign by Greggs PLC on Twitter hashtag perceived above 500 million impressions that increased the Company’s sales by 9.6% (search engine journal, 2022). The organisations depend on their people including staff and the directors. Hence, choosing the right people regarding the right task is essential for the completion of the same. Process signifies the service's delivery to the customers incorporating the sales funnel, distribution process, payment, and others. Physical evidence such as logo, business card, or website is mandatory for the consumers to acquire information about its legitimacy and the validation or visual dimension. 
Marketing and Competitiveness
Competitive Environment
Competitive environment denotes the environment for the nations or companies having the opportunity regarding effective competition with each other taking into consideration the environmental regulations (IGI Global, 2022). It refers to the unique external system regarding the competition. The more number of vendors increases the level of competition in the market to a great extent. 
SWOT Analysis
SWOT Analysis assists a business in understanding its weakness or strength. It helps evaluate the external opportunities which could act as a strong pillar for the business's smooth operation. It enables an organisationfor developing a better understanding of its goals essential for future growth (Gürel and Tat, 2017). It allows a firm to utilise its strength for grabbing opportunities for ensuring a competitive advantage over its rivals. The brand image of a company could be used as its strength for entry into a new market. Secondly, the companies need to focus on innovation as its strength for product diversification in the new or existing market. Under such circumstances, the business ensures a competitive advantage over others with a poor brand image or lack of innovation. Thirdly, a company's large market share is another strength that could be used as a unique opportunity for developing a cost advantage over others. 
SWOT Analysis helps a business identify its weakness that could be transformed into strength for neutralising the external threats. A product’s limited availability could be perceived as its major weakness. However, the organisation might focus on innovation for overcoming the weakness and simultaneously design new products. Thus, it could be able to neutralise its threat of losing the potential market by the alternative products. It ensures the competitive advantage of the company in the existing or new markets. On the other hand, the poor performance of various employees could pose a significant threat. However, the utilisation of the positive brand image of the company could attract skilled individuals from the global talent pool and turn the threat into profitability. It helps connect enterprises, industry stakeholders, as well as multiple organisations (Gurl, 2017). In a nutshell, the SWOT Analysis is beneficial regarding many aspects. 
Ansoff’s Growth Matrix
Description of Ansoff’s Growth Matrix
The Ansoff Matrix is a useful method for the evaluation and plan of different strategies concerning a business’s growth. The elementary components of the matrix are market penetration, service or product development, market development, and diversification of the services or products (Loredana, 2016). The organisations implement one of the first two elements regarding their expansion in the existing markets and adopt market development or diversification regarding expansion in the new markets. 
Using Ansoff’s Matrix to analyse growth strategies
Market penetration focuses on sales enhancement of the company's existing products in the existing marketplaces (Loredana, 2016). It depends on the execution of a price reduction policy to grab consumer attention, enhancement of promotion, or the acquisition of new competitors in the new market. Many telecommunication organisations have adopted this strategy through introductory prices (corporate finance institute, 2022). However, the major risk would be the lowering of prices throughout the whole industry. The business rivals might also offer lucrative offers regarding their products. 
The strategy related to diversification is associated with making an entry into the new market along with new sets of products. However, it is a risky strategy as it needs a strong focus on the development of products and an altogether new market. The firms adopt a couple of policies related to the diversification of products such as unrelated and related diversification. Related diversification focus on the synergy between the new and existing product. On the contrary, unrelated diversification does not emphasise any such synergies. Starbucks adopted it for making an entry in the market of India among which mention could be made of “Tandoori Paneer Sandwich”, or “Murg Kathi Wrap" created exclusively emphasising the Indian taste (Starbucks, 2022). 
Digital Marketing
Digital marketing signifies the brand promotion for making connections with potential consumers with the help of the internet or other mediums of digital communication. The procedures regarding digital marketing have been cost-effective, less difficult, and extremely flexible (Chaffey and Ellis-Chadwick, 2019). Therefore, the organisations could target their consumers in a hassle-free manner. It has the ability for economic revival and creates enormous opportunities for effective government function (Bala and Verma, 2018). 
Using Digital Marketing to improve performance and growth
Digital marketing plays a critical role in data collection concerning customer preferences and their feedback through landing pages, e-mail, as well as customer interviews. Data capture refers to the data collection and data transformation through a computer. It is highly beneficial for interaction between the business owner and customers.It is used widely in present times for the promotion of various products through different digital channels and reaching a greater percentage of customers (Yasmin et al, 2015).The brand's presence in the digital field helps a business to increase brand awareness amongst potential customers.Simultaneously, it transforms the potential consumers into actual consumers through education related to the products. The leading companies in digital marketing in their business in the UK are Tesco, Ocado, Morrisons, and many others. 
Social media marketing leverages the strength of popular social media platforms for the achievement of branding goals. The usage of various sales tools like SEO is beneficial for the generation of different leads for a business. At the same time, it creates a user-friendly and brisk website that ranks high amongst the search engines bringing more potential consumers to the websites and magnifying the conversion rates to a considerable extent. However, websites reflecting a comparatively lower quality could not derive SEO support (Berman and Katona, 2013). Viral marketing incorporates organic information related to a product or service for expanding at an abundantly increasing rate assisting the generation of positive impact at the time of the product promotion. Search Engine Marketing incorporates the promotion of a website by enhancing its visibility by paid advertising. The main search engines are Bing, Google, Safari, and Yahoo. The following graph would be useful for understanding the contribution of digital marketing in enhancing business performance across the globe. 
Conclusion
The significant objective of marketing is the sustainability and development of the companies in the market. Harnessing data for creating a more personalised and relevant customer experience is needed for the business for connecting more effective communication with the customers. The companies need to carry out a SWOT Analysis before expansion in the domestic or the global market. They need to explore the quadrants of the Ansoff Growth Matrix for the appropriate policy regarding market expansion. The 7Ps help them to review various issues that could affect its marketing in various markets. Hence, a proper understanding of the above is an absolute necessity for the companies. 

RELATED:


Leave a comment


       
Captcha

Related :-