Custom essay on Marketing

Chapter1. Introduction

1. Aims and objectives
To increase the efficiency of all marketing functions within the business improvement in the company we will use marketing research.
The marketing process begins with a study of the needs and desires of the consumer. At the stage of product development, study is needed to test the product. The studies provide a basis for making decisions on issues such as pricing, organization and sales promotion.
The main aim is to identify and evaluate the effectiveness of the Promotion mix strategy that Sainsbury used in East ham branch during recession and post recession in UK.

Objectives:
• To evaluate whether the promotional strategies used by the Sainsbury’s address the factors that influenced the customer’s purchase decision making at different stages of implementation
• To understand the promotional mix strategies that the Sainsbury’s adopted during the early recession period (2008-2009, when the company made profits) and whether any changes were made afterwards (2009-2010, while the company is struggling with sales)
• To apprehend the degree to which recession has affected the purchase preference or choice regarding the place, brand and product during recession period.
• To understand the different factors that has influenced their purchase behaviour of the customer from location point of view ( East ham branch in our case)
• To understand the different factors that has influenced decision making process
• To understand if the above factors are different from the period before recession
• To identify the factors that might help the Sainsbury’s to attract more customers by tweaking their combined marketing efforts rather than just focusing on the promotional strategies and suggest recommendations.
• To identify the impact Sainsbury basic range had on the customers.
2. Rationale for choosing the topic
Relevance of the research topic. The increasing use of business principles and techniques of marketing leads to ensure that businesses are experiencing increasing demand for information about their products and persuade consumers to prefer its products. These issues are addressed in one of the elements of marketing – the promotion of goods.
Despite the wide range of facts, opinions and research on the topics mentioned in academic papers and educational literature, the study of sales promotion is not enough well understood by many managers, and does not reflect the peculiarities of certain industries or certain economic situations in organisations, do not consider the organizational aspects of the many ways to promote. Also still remain open questions of classification of methods of promotion, particularly marketing policy issues during the recession and many others.
The emergence of negative trends in the results of the Sainsbury company, and recession, requires a reassessment of the effectiveness of traditional methods of promotion, identifying opportunities for new resources in the complex promotion, optimization of all methods used.

Therefore, in my view in-depth study of promotional mix of products in the enterprise taking into account the peculiarities of functioning, and identification of areas of traditional and new ways to promote its products, is an important task.
3. Theoretical background
Promotion of goods and services is an integral part of the marketing mix, which combines the methods and techniques of impact on customers and other actors in the marketing. It is known that the marketing mix consists of four elements:
– Goods (product),
– Price (price),
– Channels of goods distribution (place),
– Promotion (promotion).
Marketing mix as the term was introduced by H. Borden. The marketing mix, by definition, is an integral part of operational marketing, which means that issues sales promotion should be dealt with consistently and daily.
The English word promotion means moving forward. The literature on marketing, there are two interpretations of progress: according to some authors it comes to promoting products to customers and supporters of this treatment, most other authors have put into this concept meaning “to move the buyer” to take action. Of the publications devoted to the promotion of goods and services must be concluded that the component of the marketing mix – promotion – specifically dealing with marketing communications.
Promotion – mix – is a complex, which includes:
• Advertising – any form of non-personal presentation and promotion of ideas, goods or services, paid exactly specified by the customer;
• sales promotion – a marketing pressure applied in a certain limited period of time to stimulate trial purchases, increasing demand from consumers or further enhance the quality of the goods;
• PR, or public relations – is an art and social sciences with the analysis of trends, predicting impacts, recommendations of heads of organizations and the implementation of planned programs of action, which serve the interests of both organizations and the public interest;
• Personal sales – an oral presentation of the goods traders in the process of communicating with one or more potential buyers to make a deal.
The most important and widely used method of promotion is advertising company. Planning of advertising campaigns include defining the objectives of advertising, the likely consumer products properties, characteristics of the media, creative strategy, selection and assessment of the costs of the media (media planning), ensuring the preparation of advertisements, the implementation of the campaign began, an analysis of its results.
The main purpose of advertising – to create awareness, provide information, persuade, remind, persuade to the decision to purchase. These objectives are closely linked with the model of consumer behavior. This model assumes that users go through different phases: from the “awareness” (the existence of needs), “knowledge” (about the product that will satisfy the demand), “sympathy” and “preference” (certain brands) to the “belief” (which is this product better), and “buy”. Subsequently, they feel “satisfaction” that the advertiser seeks to “reinforce” or “unhappy” that the advertiser seeks to overcome.
Public relations – is planned, sustained effort aimed at creating and maintaining friendly relations and understanding between the organization and its public (employees, partners and customers). The purpose of public relations – establishment of a bilateral dialogue to identify common views and common interests and mutual understanding based on truth, knowledge and total awareness. PR events are 5 main objectives: 1. Positioning of the object; 2. The rise of the image; 3. Counter-advertising (or reduce the image); 4. Detuning from competitors; 5. Counteradvertising. Other multiple tasks: the study of public opinion, creating a single corporate identity and brand standards, the study of the effectiveness.
The successful implementation of all the aspects of marketing mix leads to the success of the marketing company.

The most important part of the research based on the interviews with the customers of Sainsbury regards the campaign switch and save promoted by Sainsbury’s during recession. And nearly 70% of respondents proved that the decision on this kind of promotion mix was successful, because according to the explanation given by the respondents they preferred Sainsbury as they not only reduced the price for products manufactured by them but also came up with different distinguishing offers and discounts on other brands. These results can be proved by the statistics about the effectiveness of the “switch and save” promotion campaign that during the year 2009, the company has managed to increase their full year profit up by more than 11% at £543 million.
The next step of the research was to find out the perspective of customers on the pricing strategy adopted by Sainsbury for their basic range of products. The analysis of the received data showed that nearly 90% of the subjects agreed that the prices of Sainsbury is cheaper to any other brands promoted in the store. This data shows that the campaign of the price war to compete with other brands in terms of price was successful.
The next stage of the interview research was to study the factors which influence the buying behaviour of a customers, and the results showed a good rate of the overall shopping experience, that proves the management and staff are doing are doing a decent job in providing a satisfactory shopping experience.
The responses in the previous questions indicated during recession Sainsbury was successful in reaching the target audience due to its promotion mix.
The last question of the interviews was asked to gather customers responses on the current promotion mix of the company, that was during the recession. Most of the customers that is 50% were satisfied with the promotion campaign, though some of the respondents said they have noticed the in store advertisement has definitely been cut down. But in the whole respondents said they dose a number of advertisements for brands and particularly for Sainsbury basic range however the number of advertisements for offer and discount has reduced.
All the above results of the interviews conducted with the customers of the Sainsbury show that:
– The customers appreciate a pricing strategy of the company;
– The customers are satisfied with the range of products at the Sainsbury;
– The customers do like the switch and save promotion campaign of Sainsbury;
– The customers do like a number of advertisements of Sainsbury;
– The customers have good rate of shopping experience at the Sainsbury.
From the results of the research we can make a conclusion that the strategy of the promotion mix adopted in the Sainsbury company during the recession had positive results, as most of the customers were satisfied.
But according to the information from reports there has been a decline in the growth rate in the post recession period, so in the research interviewee’s were questioned to give their perspective on these reports and what they perceived was the reason for drop in sales. From the interviews of the employees it was evident that the promotion mix for basic range of products remained unchanged as Sainsbury still continues to promote this both on print media and television. However it is so that this strategy was no longer as effective as it was during recession due to the changes in consumer behaviour. The possible reason for the small effectiveness of that promotion strategy in the post recession period is the lack of input from the stores in the promotion mix.
So, all stated above shows that Sainsbury company should change its promotion mix in the post recession period in order to satisfy customers and increase the sales. That is why we can make some recommendations for the company’s management about the new promotion mix.

Chapter VI. Recommendations
In order to plan the company’s profitability in the post recession period it is necessary to make certain steps to improve the elements of the promotion mix.
For this it is necessary to follow the following conditions:
1. The proposed product should be available to consumers and they must be interested in it, so the following function of the marketing mix should address this problem.
2. The consumer always appreciates goods not only on the basis of a set of their consumer properties, but also on the amount of those costs that are associated with its acquisition. Here we are talking about a certain marketing price-quality ratio. Specialists more clearly define this relationship as a “utility-quality”: the consumer examines the usefulness of the proposed goods to him and acceptable to him the price of this utility. Hence, the following components of the marketing mix – pricing policy.
In this strategy, the following activities are recommended:
1. Reducing the wholesale and retail prices for the same goods, which offer
competitors.
2. Improving the company image (logos, promotional brochures and full-color catalogs of their products).
3. Increase sales force.
4. The development of new technologies for promotion and attracting customers (creating an advertising site or online store).
5. Improving the customer’s service (reduce delivery time, improved warranty).
6. Broadening the number of distributors
The ultimate goal of our strategy – attracting more customers, that will provide a greater volume of sales and, consequently, more profit.
According to the interview with the employees of the Sainsbury, the company has the lack of input from the stores in the promotion mix. So I can advise the company Sainsbury to use the strategy of passive marketing. The strategy is characterized by low prices for goods and services and the minimum cost of sales promotion. Due to the difficult economic situation in the company and recession process, we can confidently say that the level of customer demand is mainly determined by the price, ie lower marketing costs provide a sufficient profit margin on sales. In addition, customers are well informed about products and services offered by such firms. This strategy will be effective in the initial phase of the company. The process of development involves a significant increase in marketing expenses.
The main factor for choosing this strategy is the implementation of these types of products through sales agents, who in turn develop each for himself a definite strategy implementation within the established rules. This approach is justified in all respects, as no buyer is looking for a seller and the seller is looking for a buyer, and in addition to that clients receive professional assistance specialist.
When providing the positioning of goods and services to market the company Sainsbury should choose this path: to position itself close to competing firms and to start fighting for market share. With respect to other competitors, it has greater resources and more competitive. Decisions about positioning are taken on the following grounds:
– To complete the identification of product characteristics with the needs and desires of customers;
– Based on a large range of goods;
– On the basis of lower prices offered;
– To create the image of your company through more effective customer service and flexible system of discounts.
The purpose of the advertising campaign of Sainsbury should be to improve the image and stimulate demand for all goods and services produced by this company, especially when planning the advertising of its selected products and services. The subjects of advertising are all institutions and enterprises in the city and region.
Then it is necessary for the company to have a good promotion campaing to meet the interests and needs of customers. First of all, it is necessary to find out if the target audience knows the company, and what they think about it? We can construct a range of preferences, the degree of sympathy, such as: “dislike” “not good” “indifferent,” it seems that good “and” very good “. If some of the customers negatively relate to Sainsbury, then Managers need to understand why this is happening, and then expand the campaign to create a preferencial feelings among potential consumers. If an unfavorable attitude on their part is based on real shortcomings, for example, slow service, one advertisement will not solve the problem. Sainsbury company must define the problem and then start promotion of the improving quality.
Although the target audience might like the company might, but it does not prefer it to others. In this case, managers should try to create consumer preference in relation to the company by promotion company and powerful advertising company. Then managers can determine how do change the customer’s preferences after this campaign. In this case, the goal of company Sainsbury – is advertising of it’s benefits, creating a preference among potential customers.
So, all sales promotion activities should be directed to the buyer.
Also to gain the customers preferences, Sainsbury may offer the discounts to it’s clients, such as:
– Bonus discounts: they are granted regular customers when within 6 months they are doing at least 3 orders. The value of this type of discounts depending on the amount of the order, from 5 to 10%;
– Seasonal discounts: available for customers purchasing goods outside the active season of its sales (summer time). It is 5%;
– Discount on the discount card when a customer transfers to the account of the company the seller a certain sum of money and for one year at any time can gain discounted 10%;
– Commercial agents the opportunity to decide the size of discounts to specific customers, depending on consumption. For discounts of this nature:
– Trading agent may make discounts to customers (including personal promotion) due to its percentage of the sales;
– If the salesperson is working with major customers that require significant discounts, the company provides an opportunity to increase the discount to the wholesale price up to 15%.
Now the company must take decision about a new company of promotion. Among the methods can be recommended advertising, personal selling, means to promote public relations. The company should carefully select a set of tools to promote and coordinate them in order to achieve advertising and marketing objectives.
I want to recommend Public relations – communication with the general public – because it has several advantages. One of them – is that this information is easy to believe. In this case, news, features, description of the events seem more real and believable to the reader than conventional advertising. Public relations can achieve many goals, that is beyond the power of the promotion and advertising specialists.
Communication in the Public Relations presented to the buyer as an objective news about Sainsbury, and not aimed at enhancing sales information. At the same time, like advertising public relations can increase the interest in the company or its products.
A relatively new addition to the components of marketing tools to promote products (promotional mix) is to inform – a hybrid of advertising and public relations. Sainsbury company may offer interesting stories on video for broadcast on television during periods of easy viewing, such as early morning. Information, combined with a “soft” advertising the brand or product, keeps the viewers attention.
These activities will help Sainsbury company to increase sales of the company, attract more customers and increase profits.
In conclusion, all these aspects of the promotion mix for the company are called to lead to good changes in the results of the company in the post recession period.