Marketing Principle

Importance of Traditional and Extended Marketing

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Introduction to Marketing Principle

Marketing provides the way through which managers of an organization are able to present their manufactured goods and services in front of the desired customers in an effective way. In order to carry out the present report an enterprise is selected which is named as Sony Corporation. It is the multinational conglomerate company with its headquarters in Kōnan Minato, Tokyo, Japan (Sony, 2014). Sony has its operations in almost 200 countries and has its well entrenched brand in the minds of potential customers. It contains the team of 163, 000 employees that dedicatedly work towards the goals and objectives of the enterprise. This study showcases the concept and process of marketing as used by corporation along with concepts of segmentation, targeting and positioning etc. In addition to this, the report also depicts about the importance of traditional as well as extended marketing mix for corporation (Belohlavek, 2008).

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Assignment 1

Macro and micro environmental factors that influences decision

Market environment consist of numerous factors that affect the ability and activity of the firm in both negative and positive way. The aspect relating to the market environment situation analysis plays a very important role in an organization such as Sony Corporation. It is because with the help of such type of analysis situations prevailing outside an enterprise can be assessed by the marketer which enables them in terms of directing various kinds of changes in their existing strategy in an effective way (Binet and et.al., 2007). It will also lead business enterprise in terms of increased profits and sales. In this respect, there are four basic type of analysis identified with an aim to assess the market environment situation of Sony Corporation. These are all enumerated as below:

Macro environmental analysis: It is the type of factor that exists outside the range of an enterprise and directly affects the activity of the firm. This type of analysis comprises of following factors such as political, legal, social, technological, economic and environmental etc. These all have significant impact on the activity of Sony Corporation. Political factor involves policies relating to the minimum wages for the employees along with inclusion of trade barriers etc. Any kind of changes in such type of policies affects the activity of marketing decision Sony Corporation as they will have to comply with the variation in an appropriate manner (Breton and Martín, 2011). Economical factor involves situations relating to the inflation and deflation that affect the purchasing capacity of buyers as well as the marketing decision made by marketer. For example, the inflation like situation marketer has decided to use price penetration strategy where high prices are charges from respective customer. Then in this condition improvement in the sales and profitability elated condition of organisation cannot be carried out. This is because here buyer prefers to save money rather than investing it. Social factors involve conditions relating to the changes in the tastes and preferences of customers that influences Sony’s probable demand with respect to particular product in market. This factor affects marketing decision relating to advertisement strategy of firm in an effective way. Producer of electronic goods and services is largely affected by the technological aspect which they need to consider while producing any new kind of product in market. Various legal laws and regulations relating to the consumer law, employment law and health and safety law etc. affects the existing policy of Sony Corporation. Finally, the operations of an organisation are affected by environmental related factors. However, with an aim to deal out with such type of situation in an effective way Sony Corporation organises various kinds of CSR related programs where they work for the protection of environment.

Micro external environment: These exist outside the range of firm and comprises of following aspects such as competitors and customers etc. Sony Corporation list of competitors involves following such as Nintendo, Samsung and Microsoft etc. which are proved as probable issue or threat to an organisation (Chaharbaghi and Lynch, 2010). In addition to this, firm has loyal base of the customers that are ready to purchase the goods and services of an enterprise at any cost. This seems as the strength for the Sony. Competitors affect Sony Corporation marketing decision relating to the use of specific type of strategy for the purpose to affect most of the customers.

Micro internal environment: It is a type of analysis which showcases core and distinctive competencies of companies. Sony has it in the form of talented and creative employees that dedicatedly work towards the strategic goals of an enterprise. However absence of these employees will leads to affect the decision of enterprise as in this condition organisation is unable in selecting and drawing specific strategy for the organisation.

Capabilities: Capabilities of Sony Corporation can be seen in the adoption of new and innovative technology which provides them opportunity in terms of attracting new and existing customer towards the goods and services. However, weakness of enterprise occurs when they does not rely with these aspects in an effective way.

On the basis of such type of analysis it can be said that Sony Corporation can rely with second strategy that is relating to increasing market share through new product development. Complying with the tactics relating to the new product development will enable organization in terms of attracting new customers towards the product. This will lead to increased profits and sales to the enterprise (Chua and Banerjee, 2013).

Assignment 2

Elements of marketing process

Marketing process comprises of several steps through which manufactured producst of an organization reaches to its final buyer. In this respect, there are four basic elements of marketing process identified that can be used by managers of Sony Corporation with an aim to sell its goods and services to the proposed customers. It comprises of following such as situation analysis, marketing strategy, marketing mix decision and implementation. In order to carry out the work of marketing in first instance managers of organization has to carry out an analysis of situation as prevailing in the market where they wanted to establish their electronic goods and services (Czinkota and Ronkainen, 2012). Such type of analysis can be done by them by using the tools like SWOT and PESTLE. On the basis of such type of analysis, Sony forms various kinds of marketing related strategies which are being based on the aspect relating to the marketing mix such as product, price, place and promotion etc. The formation of marketing mix must be made in a way that tends to satisfy the needs and demands of Sony customers in an efficient way. Finally, the work of identified strategy implementation will be done.

Benefits and costs of marketing orientation

Marketing orientation is the way through which needs and demands of the customers can be identified. However, this can be assessed by them by using the concept relating to product mix. In this respect, there are various benefits and costs of marketing orientation identified for Sony Corporation (Dibb and Carrigan, 2013). It comprises of following:

Benefit

More focused production: Focused production can be achieved by managers of Sony Corporation by assessing the needs and demands of its customers. By means of aspect relating to the marketing orientation, customers of an enterprise will experience more satisfaction with the product that is being produced by them, this will ultimately increase the likelihood of repeat purchase and brand loyalty. This leads to corporation in terms of increased profits and sales.

Cost

Change in the demands of the customers: Sony Corporation faces huge variation in the demands of customers. In variation type of situation the aspect relating to the marketing orientation will not work as this will functions on similar circumstances (Dziri, 2013). However, if changes are to be directed by managers of Sony Corporation as per the marketing orientation then it will cost a lot to them.

Segmentation criteria used for products in different markets

Market segmentation is the type of strategy where producer of an enterprise direct their efforts in terms of dividing the whole cluster of market into heterogeneous and homogenous group of customers. With an aim to carry out such type of criteria, from the product list of Sony Corporation, video game is being chosen (Evans, 2010). Managers of Sony can carry out the segmentation of its video games related product in two aspects such as demographic and psychographic. Demographic segmentation of the Sony selected product can be done on the basis of age and income level of customers. Here basically three types of age group of customers are selected that is lower age (4-12), middle age (12-21) and higher age (22 and above) etc. On the other hand, Sony video games can also be divided as the per income level of customers. However, such type of segmentation can be done by them by complying with more innovative and 3D technologies in video games. In the similar manner, psychographic segmentation can be done by them as per the interest level of consumers. Here some consumers are more interested in playing puzzled and tough games. On the other hand, some buyers are more interested simple games. This type of segmentation will be proved as beneficial aspect for an organization such as Sony Corporation as with the help of its business can select particular target market for its product which enables them in a way to form various types of marketing related strategy with respect to same (Ferdous and Hossain, 2011).

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Target strategy for Sony video games

For the selected Sony video games related products , differentiated target marketing strategy can be used. In this type of strategy, diverse messages are communicated to the different customers for same goods and services. For the demographic segmentation of Sony Corporation differentiation strategy can be applied in following way. On the basis of age structure of customers, Sony can direct various kinds of changes in the features of their video games. For example, in order to target lower age group of customers various kinds of changes can be done in video games (Hingley, Sodano and Lindgreen, 2008). This can be performed by them by including more of famous cartoon character related games. In the similar way, by including more of puzzled and adventures related games middle age group of customers can be targeted towards the goods and services of an enterprise. Likewise, income level group of customers can be attracted towards organization product by including additional features in the video games. On the other hand, psychographic group of customers can be targeted for Sony video games as per their interest level. For example, if some customers are more interested in playing tough games then in their marketing communication strategy advertisement of various tough games must be done.

Buyer behavior affect on marketing activity

Buyer behavior showcases the purchase decision making pattern of customers that posses its significant effect on the strategy made by an organization. The aspect relating to the buyer behavior is largely affected by following factors such as supply and demand, routine behavior, internal factors etc. The segmentation criterion for the chosen Sony Corporation video game product is largely affected by the behavior of buyer (Kotler, 2008). The managers of an organization have directed their efforts in terms of segmenting the selected product of an enterprise on two bases such as demographic and psychographic etc. By directing variation in the games different age group of customers are targeted towards the product. In such type of segmentation this probability cannot be assessed that the buyer specifically of middle age are liking the games as offered by an organization will tends to like it tomorrow also. Their demand with respect to the games will be changed on frequent basis which affects the strategy made by an enterprise such as Sony Corporation. It also influences them to direct various kinds of variations in their products that costs a lot to an organization. Overall, it can be said that changing buying pattern of customers possess its considerable affect by the marketing activity of corporation.

Positioning option for Sony video games

There are various positioning strategies identified that can be used by managers of Sony corporation with an aim to promote its video game related product in an effective way. In order to mark an effective presence of selected products in the minds of buyer, numerous types of advertisement can be exposed nationally. Here organization can use both electronic and non electronic forms of advertisements. By using these modes various features of Sony video games can be presented in front of the desired buyer in an effective way (Lee and Yoo, 2012). This will attract and influence customers in terms of purchasing the goods and services of an organization.

On the other hand, by setting different prices of the product as per the age group customers, positioning relating to Sony video games can be done in an appropriate way. Here low price must be set for the lower and middle age group of buyer as they offer simple games. In this similar way, high price must be charged from the customer that belongs to higher age group. In addition to this, positioning of Sony video games can be done in a manner by differentiating their products with that of its competitors. However, this can be performed by them by including additional features in their games such as use of 3D technologies and motion technology etc (Lilien, Rangaswamy and Bruyn, 2013).

Product are developed to sustain competitive advantages

Sony corporation’s list of competitors comprises of the following such as Samsung and Panasonic etc. Competitive advantages with Sony video games can be achieved by enhancing the quality of their video games. However, this can be done by introducing 3D technologies and sensor technology in their games. On the other hand, by improving the sound and video quality of video games competitive benefits can be achieved by Sony Corporation (Marshment, 2009). However, such type of improvement can be carried out by them by complying changes in the resolution, with the help of picture quality of games can be improved. In addition to this, by improving the color quality of Sony video games competitive advantages over their rivalry can be achieved by them. By complying with all such type of aspect distinct image of corporation can be formed with that of its rivalry. It will ultimately lead to corporation in terms of increased profits and sales.

Distribution is arranged to provide customer convenience

Distribution provides the way through which managers of an organization are able to present their goods and services in front of the desired customers in an effective way. This must be arranged in such a way so that utmost convenience can be provided to the buyers of an organization. In this respect, there are various modes of distribution identified that can be used by managers of Sony Corporation with an aim to provided convenience to their customers in an appropriate way (Poolton and et.al., 2006). It comprises of the following such as direct and indirect channel of distribution. Direct distribution involves very less number of channels. On the other hand, the product that passes through such type of distribution can be passed out within no time. However, such type of distribution can be used by Sony Corporation by opening the website. With the help of such type of websites, an effective advertisement of Sony video games can be done. This will enable corporation in terms of attracting more number of consumers towards the products. In addition to this, indirect form of distribution can be used by Sony Corporation by opening range of outlets at the countries where they are currently operating their operation. By complying with all such type of activities enterprise aim relating to the customer convenience can be met.

Prices are set as per the organizational objective and marketing condition

The organization condition relating to the profits and sales of an enterprise largely depends on the pricing strategy as set by them. In this respect, there are two basic types of pricing tactics identified that can be used by managers of Sony Corporation with an aim to increase the sales of its video games in an effective way. It comprises of the following such as dynamic and segmented pricing strategies. Dynamic pricing strategy is the type of tactics that changes according to the changing circumstances such as peak period and country facing recession etc (Magloff, 2014). Recession is the type of condition where purchasing power of customers is reduced. Here in such type of situations buyers found more interested in saving money rather than investing it. In this type of condition Sony Corporation can use dynamic pricing strategies where they can charge low prices for its product such as video games. In addition to this, segmented pricing strategy can be used by them by charging the prices as per the income level of customers. In the similar way, the prices of products are also set as per the objectives of an enterprise. For example, if Sony Corporation has the objective of increased profits and sales then, this particular aim of an enterprise can be fulfilled by them by using penetration strategy where low prices are charged from the customers.

Recommend marketing mix for two segments

There are four basic marketing mix identified that can be applied by managers of Sony Corporation in their identified segments of their product such as video game. It comprises of following such as income level and age group of customer. Marketing mix for both groups is as follows:

Product: The features of the product must be added as per the income and interest level of customers. This can be performed by Sony Corporation by offering advanced video game related technologies to those customers that possess high income and interest level. On the other hand, feature can also be changed as per the age group of customers.

Price: High pricing strategies can be used for those customers that demands for high amount of features in video games. In the similar way, in age group context low prices needs to be charged from those buyers that belong to low and middle level age group of customers (Rosenbloom and Dimitrova, 2011).

Place: Here both direct and indirect mode of transfer can be used by manager of Sony Corporation with an aim to present its product by both identified segments.

Promotion: In order to attract lower middle age and income group of customers towards the product electronic media of promotion can be used. Here promotion must be done in such type of channel such as Pogo that attract kids towards the product along with placing ads in news channel etc.

Promotional activity is integrated to achieve marketing objectives

There are various ways of promotion identified that can be used by managers of Sony Corporation with an aim to promote its products such as video games in an effective way. For demographic segmentation where three groups identified which comprises of following such as lower age (4-12), middle age (12-21) and higher age (22 and above). Television mode of advertisement can be used by managers of Sony Corporation with an aim to promote product for the lower and middle age group of customers. On the other hand, by placing hoarding at different corners of city higher age group of buyer can be attracted towards the product such as video games (Prasad, 2010). In addition to this, various online mode of promotions such as placing ads at social networking sites must be used with an aim to attract group of customers of young age towards the goods.

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Extended marketing mix

Extended element of marketing mix comprises of following such as physical environment, people and process. For marketing plan which has made by Sony Corporation for its product such as video game, these extended elements are explained as below:

People: Employees plays a very important role in an organisation. It is with the help of their efforts only the product of an organisation are able to present in front of the desired customers in an effective way. In this context, proper product related training needs to be provided to the employees of an organisation which enable them to present their goods and services in front of the desired customers in an effective way (Rippin, 2007).

Process: An effective process with respect to the delivery of goods and services needs to be followed within an organisation which complies with the aspect of cost effectiveness.

Physical evidence: The importance relating to such type of evidence can be seen when Sony sells its product by opening number of lavish and refreshing outlets in various countries. It involves following such as interior and exterior decoration within an organisation.

Differences in marketing products and services to businesses rather than consumers

There is a vital difference found out between business to business (B2B) marketing and business to consumer (B2C) marketing. These all differences can be explained by following points such as:

Relationship driven: If Sony Corporation has decided to sale its product to business, then at that time they will be focused more on maintaining business relationships (Klor, 2012). But this condition cannot be seen in the case of B2C marketing as it involves large number of buyer which is price sensitive too.

Buying decision: Rational buying decisions is followed when products are to be sold through B2B marketing. On the other hand, in the case of B2C market, emotional trade decision will be followed.

International marketing differs from domestic marketing

There are variety of differences which is being seen between domestic and international marketing. Domestic marketing is such type of practices that enables corporation in a way to sale their product within the political boundaries of a country. Domestic marketing deals with various aspects such as customers, competitive and market issues within local boundaries (Czinkota and Ronkainen, 2012). This showcases that in domestic marketing scope for presenting product is limited. In addition to this, in domestic market an easy sale of products can be done as it involves less documentation of work. However, this is not seen in the case of international marketing as it involves lots of trade related barriers and regulations.

Conclusion

Attributing all the facts from report it can be concluded that, elements of marketing process plays an very important role in assessing the needs and demands of buyers for the product. On the other hand, with the help of micro and macro environmental analysis various changes can be directed by the managers of Sony Corporation in their existing marketing strategy. This will lead to enterprise in terms of increased profits and sales. Further with this, the help of extended marketing mix more effective approach for presenting product can be used by the manager of an enterprise.

References

  • Hingley, M., Sodano, V. and Lindgreen, A., 2008. Differentiation strategies in vertical channels: A case study from the market for fresh produce. British Food Journal.
  • Kotler, P., 2008. Principles of Marketing. Pearson Education India.
  • Lee, S. and Yoo, S., 2012. Return on marketing investment: Pizza Hut Korea's case. Management Decision.
  • Lilien, G. L., Rangaswamy, A. and Bruyn, A. D., 2013. Principles of Marketing Engineering. 2nd ed. DecisionPro.
  • Marshment, J. L., 2009. Political Marketing: Principles and Applications. Routledge.
  • Poolton, J. and et.al., 2006. Agile marketing for the manufacturing-based SME. Marketing Intelligence & Planning.
  • Prasad, V., 2010. Business Environment. Gyan Publishing House.
  • Rippin, A., 2007. Space, place and the colonies: re-reading the Starbucks' story. Critical perspectives on international business.
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