MKTG1001 - Marketing Assessment PDF

Preview

Summary

Marketing assignment - Woolworths...

Description

1. Introduction Marketing plays a vital role in whether or not a business will be successful or not. For a product to be successful, effective marketing must be used to make it appealing to a targeted market so it is profitable. This is done through adhering to the five core marketing concepts identified by Armstrong et al. (2012, p. 6) which include “customer needs, wants and demands; market offerings- goods, services and experiences, customer value and satisfaction, exchanges and relationships and markets. The marketing mix is also key and is defined as “the set of controllable tactical marketing tools – product, price, place, promotion, people, process and physical evidence – that the firm blends to produce the response it wants in the target market “Armstrong et al. (2012 p. 58). This report will look at Gatorade Sports Drink, and how Woolworths has implemented these methods in targeting the psychographic segment. 2. Targeted Segement’ Psychographic segmentation splits the market into areas revolving around social class, lifestyle or personality characteristics. The lifestyle area of psychographic segmentation would relate to, Gatorades Sports Drink targeting a market of athletes looking to boost their endurance and increase performance. 3. The Core Marketing Concepts In simple terms, marketing is a concept that revolves around a target audience and how marketers can successfully reach consumers and how consumers can reach their service. Market segmentation is then introduced as it breaks down large, diverse markets into smaller minorities in which marketers can be more effective and successful in meeting consumer needs, wants and demands. Customer needs, wants and demands are all distinctly different so it is important to look at each sub category individually when marketing to consumers. Customer needs can be categorised into individual, social and physiological needs. With Woolworths, the consumer’s needs are met physically through products being readily available to purchase. Wants are the desire for products influenced by personality and the individual’s culture. Woolworths provides the answer to wants through their wide range of products for any lifestyle. For the lifestyle aspect of psychographic segmentation Woolworths provides for athletes through sports drinks, protein bars, protein powder and a dedicated section named, “Diet, Sports and Nutrition” appealing to the targeted segment. Finally, demands describe a consumer’s willingness to pay a price for a specific product that will give them the best value. This is shown in the different Gatorade products available including, standard single bottle, 4 pack which is cheaper than buying 4 separate bottles or powder form, which can make up to 8L of Gatorade. These examples provide consumers with options within the psychographic segment allowing their products to appeal to a wider audience and provide consumers with the best value for their money.

A market offering aims to suffice a need or want through a product, which can be any combination of goods, services or experiences. Marketers differentiate products which either have a physical form or that are intangible, using this categorisation (Armstrong et all, 2012, p. 7). Sellers/Companies have a great edge if they can fulfil what consumers need, want and demand as it will create a competitive advantage. Woolworths provides goods such as food, drink, toiletries etc. The experience of shopping at Woolworths is what product the consumer gets to choose over the range of similar products for the one that is right for them. The services that are provided while at Woolworths include air-conditioning, user friendly aisle layout and cleanliness. An experience/service that is exclusive to Woolworths is the Fresh Sushi Bars, in which you can now pick up freshly handmade sushi in store. Woolworths incorporation of all the market offering facets make it easier to understand the incorporation of each category within one another. Customer perceived value is the difference between the value the customer gains and the cost of the product when compared to others. Whereas, customer satisfaction is term that measures how a product’s performance meets or surpasses a customer’s expectation. If a customer’s expectations are meet or have been exceeded, then satisfaction has occurred. Customer perceived value can be worked out using the equation “Value = Benefits – Cost”. By applying the equation to Woolworths, benefits that are identified from a consumer’s perspective include, fresh food, variety, everyday rewards and customer service. Nonetheless the benefits must be weighed up with the costs, which include travelling to and from Woolworths, the store being busy, products wanted are out of stock or unavailable and opportunity cost (i.e. certain Woolworths are located within shopping centres therefore consumers could go shopping). Each consumer is different so each consumer will assess these variables and perceive the value of Woolworths differently. Either becoming a customer or deciding not to be. The role of quality in this aspect of customer satisfaction is essential as a product with poor quality will lead to low customer satisfaction which could lead customers to changing supermarkets just from one bad experience/service. Quality also affects the customers perceived value, either negative or positive of the product depending on their view. In turn, Woolworths marketing strategy aims to ensure that they maintain returning customers. They achieve this through, constant specials and deals on products, comfortable environment and an everyday rewards loyalty program which encourages customers to shop to get future discounts. The final core concept encompasses exchanges, transactions and relationships. An exchange is the undertaking of attaining an item from another party by repaying them another item (Armstrong et all, 2012, p. 8). Whereas, a transaction consists of a trade of value between two parties. Lastly customer relationship management is the process of constructing and preserving profitable customer relationships by executing superior custom value and satisfaction. In regards to Woolworths, the exchange is attributed to buy a product for a certain cost. The transaction occurs either at a checkout, self-serve checkout and purchasing online for delivery or pickup. Woolworths has built customer relationships through initiatives such as their everyday rewards loyalty program, marked down items that have been on the shelf for too long and specials and deals on popular products. These actions Woolworths have implemented have been used to build and maintain profitable relationships with

its customers to ensure customer satisfaction and value are constantly met and exceeded.

4. The Marketing Mix In marketing, the marketing mix is one of the most essential marketing concepts. The marketing mix is described as, “the set of controllable tactical marketing tools – product, price, place, promotion, people, process and physical evidence – that the firm blends to produce the response it wants in the target market” (Armstrong et all, 2012, p. 58). The central role of a marketing mix is being able to build profitable customer relationships, therefore creating value and satisfaction for the individual customer. This shows the importance of a marketing mix, as companies have control over their own marketing mix giving them control on how the can create results for their intended target market. The success for products from a company like Woolworths depends greatly on the execution of the marketing mix. Woolworths product offering of Gatorades Sports Drink is providing a sports drink for athletes looking to boost their endurance and increase performance. The features of the product offering are that it gives the paying customer a drink that is absorbed faster than water aiding in performance and replenishment of electrolytes that are lost in physical activity. The core product includes hydration and replenishment of electrolytes. Actual product is the Gatorade Sports Drink, the bottle shape, size and style and colour of the bottle being green with an orange lid. The augmented product is if you are not 100% satisfied with the product you can return it for a money back guarantee and dietary guideline on the back of the bottle explaining what is include in the Gatorade. Woolworths has a adopted a competition based pricing technique, which focuses on ensuring that the organisation maintains its sales volume and market shares. This technique is used in highly competitive markets like supermarkets which Woolworths is. One Gatorade Sports Drink (600mL) costs $3.38. Woolworths offers their Gatorade Sports Drink in various locations inside their stores. They are available to purchase in the Sports Drink section of the Drinks aisle as well as having them readily available in the drink stations at the front of all checkouts for an easy shopping experience. In terms of the channel of distribution, Woolworths receives the product (Gatorade Sports Drink) from the manufacturer being Gatorade straight from their warehouses, while Woolworths distributes costs through their online website, brochures and instore advertisements. This channel of distribution is effective in reaching consumers are guiding them towards buying Gatorade Sports Drink. Logistics management that is of importance is the online website. Through the use of the internet, Woolworths is able to communicate with consumers through a cheaper way using fewer resources. Woolworths uses various forms of promotion to reach its target audience. Forms used by Woolworths include, magazine advertisements, brochures and television advertisements. The message being communicated to the market is that Gatorade Sports Drink is a drink that will not only replenish fluids but boost their endurance and increase performance giving great benefits and value.

The supermarket industry relies heavily of the management and store persons/salespeople hired. While seeing products in brochures or the internet, products and how they are displayed and conveyed to customers instore much more effectively. Physical evidence is attribute to the tangible points that assist customers to determine for themselves the quality of the service which for Gatorades Sports Drink includes the quality of the bottle design and the grip they get when holding the bottle. 5. Conclusion In conclusion, the above report shows how vital the core marketing concepts and marketing mix tools are in relation to Woolworths and their product Gatorade Sports Drink.

Reference List (APA) 1. Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2012). Principles of Marketing 5e. Pearson Australia.

http://www.livestrong.com/article/25862-gatorade-body/ https://www.woolworths.com.au/Shop/Browse/toiletries-beauty-health-wellbeing/dietsport-nutrition...