Customer Satisfaction And Profitability Marketing Essay

Marketing is not difficult thing. Customer satisfaction and profitability are the main purposes in marketing concept. Because of these things people can be outmatched their business. If a company satisfies their customers better they don’t have any problem about their business. And also customers attract for that business. Because of the successful marketing business and employees can get more benefits like financial benefits and self-satisfaction. There area so many posers have to face to the businessmen huge competition, environmental factors (global warming, shipment hazard, environmental pollution). So the marketers should adjust for these things. Most of the people area thinking the marketing is buying and selling concept. It’s just a part of the marketing. All the businessmen should identify the customers need and wants. And they should provide high quality products and also the producers should effective pricing their products. Concerning these things the marketing is,

Needs

Demand

Wants

Market

Goods & Services

Cost, Quality & Satisfaction

Relationships

Exchange & Transaction

Figure 1 Core concept of marketing

2.1.1 Elements of marketing process

Marketing environment

Segmentation

Positioning

Targeting

Marketing mix

2.1.1.1 Marketing Environment

Marketing environment consist of performers and forces outsides marketing and affect the marketing management capability to develop and maintaining relationships with the customers. Micro environment can be divided in to 2 groups.

Micro environment

Micro environment

Micro environment

There are five components in micro environment factor.

The company

Suppliers

Competitors

Intermediaries

SuppliersCustomers

Intermediaries

Competitors

The company

Customers

The company

It is an internal environment factor. Three are various kinds of management levels and departments in the company. These are top management, finance, research and developing, manufacturing, accounting. The company designs the marketing plans to reach their objectives and goals.

Accounting

Manufacturing

Finance

Purchasing

Research & Development

Top management mnt

The company

Top management is setting company vision, mission, objectives and policies. The company marketing manager should work with other departments very closely to get good results and reach the goals and objectives. Al these departments must think about the customers and how to satisfy their customers.

Suppliers

Suppliers are the most important factor in a company. It is an external factor. They provide the raw material to produce the product in the companies.

Intermediaries

It helps to promoting, selling and distributing the company products to the customers or the buyers. There are resellers, physical distribution firms, marketing service agencies and financial intermediaries in this factor.

Reseller: – It’s a distribution channel, it helps to find the customers and sell the products for them. Retail and whole sale include the reseller.

Physical distribution firm: – It helps to stock good from their opinions of the source to their destinations.

Marketing service agencies:-It helps to promote the company. (Media, advertising agencies…)

Financial intermediaries:- It helps to financial deals.

Customer

Customers are the main priority of a company. Company should identify the customers’ needs and wants and also company should satisfy their customers. The customers expect high quality products with low price from the company. There are five types of customer markets.

Consumer market: – It markets the products and services for their own or family uses and bought by individuals. Consumers have lots of choices. So the company should focus the various kinds of consumers’ choices.

Business market: – Business marketers must prove how their products will help these buyers achieve higher revenue or lower costs. The companies providing goods and services to well-trained and well- specialized buyers. Because they are skilled people in assessing competitive offering. Business market is similar to consumer market.

Reseller market:- Resell at a a profit

Government market: – Government market involves universities, government office, army and other government departments. In order to produce public services.

International market: – All the types of buyers in foreign countries.

Competitors

Competitors are the main factor in micro environment. Every companies aspect wide range of competitors.

Macro environment factors

Macro environment factors are influencing from outside to the company. There are six macro environment factors with PESTEL analysis.

The factors are,

Technological

Demographic

Macro environment factors

Political

Economic

Cultural

Natural

Economic factor

This factor affect to consumers purchasing power and spending patterns. Inflation, economic growth rate, unemployment, interest rates, taxation changes are affect for the economic factor. Inflation rates affects to the price. An increase the amount of money generally. When talking about the unemployment if the people are unemployed less people have to pay taxes or have money for spending. Unemployment is affect for the economic. If people are unemployed they don’t earn money and they don’t buy anything. Interest rate is amount of money have to pay. It’s a percentage by a lender to a borrower for the use of assets.

Natural environment factor

Natural environment factor has geographic and ecological factors. Climate, whether, environment pollution, global warming these are the natural factors. These are affecting to the so many industries.

Demographic factor

There are so many demographic factors.

Population size

Income level

Age level

Growth rate of population

Educational level

Religion

Density

Occupation………….etc.

If take income level, occupation, family size, age level, these are affect to demand goods and service. When these factors are increasing the companies can increase their profit through high sales.

Political factor

It has close relationship with economic system and economic policies. Business legislation has been ratified for number of reasons.

To protect companies

To protect consumers

To protect and interest societies

Technological factor

Technologies are very important thing for the companies to produce the products. So many companies try to produce their products including new technologies. Online shopping, barcoding system area the technologies improving the business.

Cultural environment

There are so several variables in cultural factor, society’s benefits, values and norms.

2.1.1.2 Market segmentation

What is segmentation?

Dividing a market in to distinct group of buyers on the basis of needs, characteristic, or behavior who might be require separate products or marketing mix.

The segmentation concept has identified by Smith in 1957′. He grouped the customers in terms of their needs. Segmentation has so many advantages.

Advantages

Explain about the advantages

Customer analysis

When segmenting, that can be identifying the best customers and customers’ level.

Competitor analysis

It recognizes the competition each companies. When segmenting companies can identify the competitive companies products qualities.

Expanding the market

Expanding market is a best feature in a business. Because they can identify the new customers. The company can increase their sales.

Strategic market planning

The planning is the process of developing and maintain a strategic appropriate in a company to reach goals and objectives.

Effective resources division

Company scarce resources can be essence more successfully on a few customers, rather than spread thinly through the masses.

Segmentation variables

There are so many ways to segment the market. The major segmentation variables are,

Geographic segmentation

Psychographic segmentation

Behavioral segmentation

Demographic segmentation

Geographic segmentation

It can be divided in to several unites. These are countries, cities, regions, states, nation and also customers living place like climate places or not. The natures of products apply only to people living within a specific area. For examples if take clothing company they sell heavy-weather clothes for cold coastal areas. And also solar system that product difficult to sell upcountry people because that people can’t store more sunlight. Some companies aim the young people to sell their products. So they try to reach universities towns because young people frequent in these places.

Demographic segmentation

Demographic segmentation can be divided in to various unites. Age, gender, income, occupation, family life cycle, region, nationality…etc.

Psychological segmentation

Physiological segmentation classifies consumers according to their personality. It can be divided in to three unites. Social class, Lifestyle, Personality characteristics.

Behavioral segmentation

Behavioral segmentation can be useful and consistent way of segmenting. Consumer knowledge, attitude, response to a products are the unites of behavioral segmentation.

Effectiveness of segmenting

Money

Degree to which market is segmented

Number of the unites sold per head of total population

Cost of adopting product

Premium consumers will pay

2.1.1.3 Market Targeting

When dividing the market in tom segments, company managers must decide which segment will be nest one to target. The managers should select profitable segment. The process of choosing a segment to a company is called targeting.

2.1.1.4 Positioning

Positioning is the place a product occupies in a given market as supposed by the relevant group of customers. Consumers build up a position for a product based on what they expect. The product position has perceptual map of the market. Sometimes the positioning process led by the marketers or by the consumers.

Perceptual map

High quality

Cowboy brand Premium brand

Low quality High quality

Economic brand Bargain brad

Low price

Positioning can be divided in to several types.

Low price- Some companies’ position is selling goods & services with low price.

High price- This is opposite of the low price strategy.

Quality- Some companies try to produce high quality products and services than the other competitive companies.

2.1.1.5 Marketing Mix

There are four factors in marketing mix. It’s called 4Ps.

Price

Product

Place

Price

Discount

Incentive

List price

Allowence

Product

Quality

Variability of goods

Design

Brand

LabelingPromotion

Target customers

Place

Transporting

Warehousing

Promotion

Advertising

Personnel selling

Sales promotion

Public relations

Direct marketing

Price

What is price?

An amount of money charged for goods and services.

There are several names of price these are, rent, tuition, fee, fare, rate, interest, and premium. Price is very importance to the economics.

Importance of pricing

Maximizing profit

Maximizing revenue

Maximizing sales

Survival

Facing competition

Market skimming

Internal and external factors of price

Internal factors

Business objectives: – When campaigning purpose of maximizing sales, it will be deciding the prices.

Marketing strategies: – When following promotion strategies the companies are deciding a high price for the products.

Cost: – It can be divided in to two types. These are fixed cost & Variable cost.

External factors

Nature of the demand: – The marketers should identify the relationship between prices & demand.

Competition: – The Company should identify the prices of competitive companies.

Government policies:-

Economics situation: – Inflation, awaking of economics, fluctuation.

The ways of pricing

The company can give a law price or a high price for their products. If get a high price, demand will be falling. If get a law price, demand will be increasing. Mentioned bellow the factors of deducing price.

Consumer price

External & internal factors

Competitive cost

Production cost

Law price

No profit

High price

No demand

The factors of deducing price

There are pricing stages.

Cost-based pricing

Buyer based pricing

Competitive based pricing

Cost-based pricing

Cost plus pricing

Ex: – Fixed cost=Rs.500, 000

Variable cost= Rs.10

Unites of sales=100,000

=10+5

=RS.15

Marketer expect to get 20%profit, then the calculation is,

Price= 15/0.8

=Rs.18.75

Break even pricing

The more developed businesses are using this pricing. The main purpose is getting more profit from their investment.

Ex:-

=500,000/8.75

=57142.85=57,143

Total revenue

Break-even point

Fixed cost

Pricing strategies

Skimming price

Penetration price

Product mix price

Price adjustment price

Competitive price

Skimming pricing

Skimming pricing is When deciding the price for their products they determine a high price than the other completive products. Here the company tries to say they have high quality products. The customers are thinking that company has high quality products because of the high price. When introducing a new product to the market, marketers are following this method.

Penetration pricing

Here, the marketers decide law price to their products than the other competitive products. So the customers are trying to buy these products to experiment. The main purpose of penetration pricing is motivating and attracting the customers for their products.

Competitive pricing

Most of the businessmen are using this strategy. Here, the marketers decide same price when comparing the other competitive products.

Product mix pricing

It uses when introducing a range of good for the market.

Price adjustment strategy

The marketers decide the price considering the nature of consumers and the market.

Place/Distributing

The place is the market which is to sell the products and services.

There are three main factors when deciding the ways of distributing goods and services from producer to the customer.

The market

The product

The producer

Under the market company should identify, who are the customers? Where are they? How much do they buy?

Under the products company should identify, how they qualify the products, what is the price, what are the features of the products, what the services company should supply are, and the nature of pave to identify. Product life cycle.

Under the producer, there are so many things have to identify. These are do they have warehouse services and transport services, do they have enough money and what are they producing.

Distribution channels

Manufacture

Wholesaler

Retailer

Customer

Distribution channel functions

Providing the information: – Providing the research and intelligent information to the company and herald to the customers which are in market.

Promotion:-Developing and spreading the goods and services for the customers including the benefits. (Discounts, allowance)

Negotiation: – Reaching and an agreement on price and other period of the offer so that ownership or possession can be transferred.

Risk taking: – It helps to get more profits.

Strategies of distributing

Strategies

Products

Price

Intermediates

Incentive

Convenience goods

Law price

Wholesale, retail and Representative

Selective

Shopping goods

Law & high price

Limited retail seller

Exclusive

Special goods

High price

Specialized retail sellers

Integrate

Special goods

High price

No wholesaler and retailer, direct producer

The ways of distributing channels

Consumer goods

C

U

S

T

O

M

E

R

P

R

P

D

U

C

E

R

Wholesaler

Wholesale

Jobber

Retail

Retailer

Wholesaler

Technical or industrial goods

Distributor of industrial goods

Representative of producer

Representative of producer

Distributors of industrial goods

P

R

O

D

U

C

E

R

B

U

S

I

N

E

S

S

M

A

N

N

3 Promotions

What is promotion mix?

Informing the customers about the products availability and benefits, and motivating to buy the products.

There are five factors in marketing mix,

Advertising

Personal selling

Public relations

Direct marketing

Sales promotion

Advertising

It helps to persuading the customers for the company products and services. The companies should pay for the advertising medias to advertise their products. There are so many advertising ways,

Medias (printed media, television, radio), Social networks (websites, internet), Banners…etc.

C:UsersKANISHKADesktopMedias.jpg

Purpose of advertising

To inform

Persuade

Remind

To inform- There are so many ways to inform the customers. Companies have to inform about their products and the services to the customers. These are,

Informing about the new products

Informing what are the benefits of the products customers can get.

About the prices

Informing functions of the products.

Persuaded- The main purposes of the persuaded are,

Incentive to buy the products and services.

Introducing the brand new products to the market

Providing benefits like, discounts, allowances…etc.

Remind-This is one of main purpose in advertising.

Reminding what are the places that the customers can get the products.

Company should remind their products feature for the customer.

They should identify points when the company selecting an advertising media for advertises their products. These are frequency, impact. If take frequency it is very important when advertising, because the customers can care about the products and also impact is very important thing for advertising.

Public relations

Companies should have a good relationship with the other companies and the customers. Because of that company can build up favorable attitudes.

Ex: – Discussing, meeting …

Direct marketing

Companies try to distribute their products without any intermediates.

Ex: – Tele-marketing, Direct-mail, E-commerce

Personal selling

Also it helps to build up the good relationships. There are various names to identify the persons who are doing sales

Sales people, sales agent… etc.

Product

Products can be divided in to three types.

Tangible

Durability.

Goods and service

Goods and services also can be divided in to two groups.

Consumer products

Industrial products

Company products and services should have three major features theses are,

Quality

Feature

Design

Product life cycle

C:UsersKANISHKADesktop470_1304106.jpg Product life cycle

There are 4 stages of PLC.

Product developments stage-There are no any sales in this stage. Here company can generate the new ideas and they can develop these ideas

Introducing stage- Sales are increasing slowly. No profit margin.

Growth stage- Normally sales will increase but the cost going down. So showing high profit.

Maturity stage-Here sales growth will decrease slowly. Because of the buying products by the buyers. Profit will be lower.

Decline stage- Sales will decline in this stage. Also profits will decrease.

2.1.2 Introduction of the company

Ceylon biscuit limited (CBL)

Sri Lanka’s first biscuit factory is William’s Biscuit factory, owned by Mr. Williams. He has made name as a small scale handmade biscuit venture.  In 1939, this factory was attained by Mr. Simon Arthur Wickramasingha (1902-1984, launching ‘Williams Confectionery’ with just 10 employees. This factory was dehumanized in 1957 with Baker Perkins lines from the UK

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CBL’s commercial operation in the 1980’s got highest growth rates in any industry in Sri Lanka. CBL took heart into India bond up manufacturing plants and procuring related companies while also procuring several companies in the food industry and thereby establishing CBL Foods

The group’s new innovation make range, high quality standards and aggressive marketing strategies also have made chances for many of CBL’s brands to be the market leaders in their respective categories, while empowering an ever expanding global presence.

With throughout 40 years of excellence experience, innovation, technology, quality and taste are the guiding principles behind everything, CBL do in achieving their vision is to be the No.1 biscuit, chocolate and confectionary manufacturer and marketer in Asia, while amplifying a global presence and recognition

Products of the CBL

http://www.muncheelk.com/images/biscuitss.jpghttp://www.muncheelk.com/images/desserts.jpg

Biscuits Jelly

http://www.muncheelk.com/images/cakess.jpg

http://www.muncheelk.com/images/chocolates.jpg

Cakes Chocolate

http://www.muncheelk.com/images/soyproducts.jpghttp://www.muncheelk.com/images/cereals.jpg

Cereal Products Soya Based Products

http://www.muncheelk.com/images/quicksoup.jpghttp://www.muncheelk.com/images/porridge.jpg

Soups Herbal Products

Task 03

Marketing mix strategy adapted to one of the CBL products is Munchee biscuits.

E:munchee logo 1.jpg

3.1 Product strategy

There are so many biscuit products in CBL.

Super cream cracker

Munchee tiffin

Hawain cookies

Munchee nice

Chocolate biscuit

Lemmon puff……………etc.

They refer the products elements. These are, Quality, brand, styling, safety packaging and warranty. They are using eye-catching packaging which is ability to keep the food stuff for a long time.

3.2 Distributing strategy

CBL Company has so many agencies which are attached to their distributing. They distribute their products through 60 agencies and 400 dealers in Sri Lanka and their products are available in over 80,000 sales openings in Sri Lanka. The products are producing in Ranala & Pannipitiya. CBL exports their biscuit products to overseas countries like Australia, India, Guana,China….etc. And also they have various kinds of transportation channels. These are shipping and cargo services and air lines

3.3 Pricing strategy

They are using several pricing strategies. These are retail price, bundles, wholesale price and discounts…etc. The entire munchee biscuit products have the same price levels when comparing the other competitors (Malian, Maam…). They don’t target upper level classes in society. CBL is targeting entire customers in Sri Lanka (Upper, middle and lower). So CBL Company continues their prices with competitors and increases the quality of their biscuit products.

Promotion strategy

CBL (Munchee) has various kinds of promotion campaigns. These are sales promotions, public relations, advertising and publicities. They are using print media and victuals to advertise their biscuit products. They are doing some of welfare services like scholarships, granting, education equipment to the students and donating to the religious cores and schools improves and get the goodwill of their brands

3.5 Extended marketing mix

3.5.1 People

Ceylon biscuit limited using suitable recruiting and training methods for their employees. After recruiting they give about two weeks training program to inside people before working. They are organizing leisure programs. These are entertainment (munchee with ridee reyak), annual trips, musical shows. This company provides medical facilities insurance (life & health) for their people.

3.5.2 Process

CBL is providing a very efficient delivering service to every city in Sri Lanka and other countries using their transport agencies.

3.5.3 Physical evidences

Physical evidence is important in supervisory buyers of intangible services through the selections available to them. Ceylon biscuit company maintains their factories and distribution places which have so many machineries cleanly and friendliness manner for employees.

04 Task 4

4.1 Planning to introduce a new product with two segments

CBL has already introduced cakes. But those cakes include the eggs. Some people don’t like to eat cakes because of the eggs. So CBL try to introduce a new product, it’s also cakes but without eggs. Name of the product is Swiss roll cake.

Segments are,

Existing Swiss roll and egg free Swiss roll.

There are no age limits for the cakes. The problem is some people don’t like eat eggs, because of the case they don’t like to eat cakes.

4.1.1 How to affect marketing mix for the new product

Product

The first stage in building an affective mix is to understand the market. The target of the product is some people are don’t like to cakes because of the eggs. So CBL tried to produce this product to be familiar for this people. The company improved the product to make more effective and more customer friendly. If take packing new product packing is similar to existing product packing and flours are vanilla, chocolate and strawberry. There are various kinds of sizes of this product. Large pack size is 300g. For healthiness of the customers company introduce small packets of cake with law price (Rs.20). Existing product ingredients are, Flour, sugar, salt, eggs, margarine, various flavors,

Price

There are so many factors affect end price of a product. For example the business needs to maximize profit or sales. The product price needs to offer value for money in the market and attract customer to buy.

There are so many pricing strategies that a business can use:

Cost based pricing – this can either basically cover costs or include an element of profit. It emphases on the product and does not take account of consumers.

Penetration price – An initial low price to ensure that there is a high volume of purchases and market share is rapidly won. This strategy encourages consumers to develop a habit of buying.

Price skimming – An initial high price for a unique product inspiring those who want to be ‘first to buy’ to pay a premium price. It helps a business to gain maximum revenue before a competitor’s product influences the market.

Our new product has various prices

300g-Rs.200/=

175g-Rs.125/=

30g-Rs.20/=

Place

Our company aims all the customers in Sri Lanka. Specially unlike people for the eggs. This product can buy retail outlets like super markets or high street shops.

Promotion

Promotion is very important method for new product. Because it helps to market new product easily. There are so many promotion channels like Medias (printed media, TV, radio), social networks, banners…etc. CBL uses the promotion campaign to promote this new product to the market. Also give a big advertisement through television.

4.2 Differences in marketing products and the services.

Marketing products and services have so many similarities as well as differences. Products and services benefits from adding reliance and name recognition into the marketing materials, but products can be desire purchases whereas services need time for delivery. There are so many differences between marketing products and services, most of which focus on relationship building.

explanation

Time

When selling a product there is time invested to create the product and sold again without further time invested. Time is very important part of marketing.

Deliverability

When marketing a product marketers can get customers a delivery date estimate. They are ordering online or through the websites. The marketers can walk out the door with the product in hand. Service can provide after the customers’ ordered.

Relationships

When services build up the customers should have trust and reliability.

4.3 How and why international marketing differ from domestic marketing

What is international marketing?

International Marketing is the performance of business activities that direct the current of a company’s goods and services to consumers or users in more than one country for a profit.

What is domestic marketing?

Domestic marketing is that the company has to market its pro