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FORM 1: ASSESSMENT SUBMISSION FORM

Individual Student Record of Grading Outcomes


(To be completed by student while submitting the assessment and by the faculty when reporting the outcome of the students work)

SECTION A: TO BE FILLED BY THE STUDENT

Student Name: Ahsan Saeed Unit Name : Marketing Principles Term: April- June 2013

Assignment Title : Elements of extended marketing mix and guerrilla marketing Due Date: 02/06/2013 Date Submitted : 30/5/2013 (if different)

Student Declaration: By submitting the assessment electronically or in print, I confirm that this is my own work and that I have not plagiarised any part of it. I have also noted the assessment criteria and pass mark. I declare that the work I am submitting for assessment contains no sections copied in whole or in part from any other sources, unless it is explicitly identified by means of quotation mark or in case of very long quotations, by means of wholly indented paragraphs.

SECTION B: TO BE FILLED BY THE FACULTY MEMBER

Learning Outcome

Evidence for the criteria

Tasks

Met the criteria?

Feedback

LO3 Understand the individual elements of the extended marketing mix

explain how products are developed to sustain competitive advantage.

3.1

Q1 Yes /No

3.2 explain how distribution is arranged to provide customer convenience

Q2, Q4 Yes /No

3.3 explain how prices are set to reflect an organisations objectives and market conditions

Q2 , Q5

Yes /No

3.4 illustrate how promotional activity is integrated to achieve marketing objectives 3.5 analyse the additional elements of the extended marketing mix

Q3, Q6

Yes /No

Q2

Yes/No

FINAL GRADE FOR THE ASSESSMENT


( )Distinction ( )Merit ( )Pass ( )Repeat

Assessors Additional General feedback and comments:

Assessors Name: Hamid Khan

Date Issued :

Elements of extended marketing mix and guerrilla Marketing


ANS (1)

In business, competitive advantage can be defined as the strategic advantage that one business entity has over its rivals within the same competitive industry. Achieving a competitive advantage puts the business in a stronger position within its business environment. For this we need to develop our products and services day by day according to our customers needs and wants. There are several ways in which a business might think about developing a product in order to sustain or build a competitive advantage:

Level One: Core Product Level one is the most basic level and simply looks at what people set out to buy and what benefits the producer would like their product to offer buyers. So Prior to designing any product designers should list the core benefits the product needs to provide. Level 2: Actual Product

Level two is about translating the list of core product benefits into a product that people will buy. There may be competitor products offering the same benefits so the aim at this stage is to design a product that will persuade people to purchase your product. This can involve deciding on the quality level, product and service features, styling, branding and packaging. Level 3: Augmented product Level three involves deciding the additional non tangible benefits that a product can offer. Competition at this level is based around after sales service, help lines, warranties, free/cheap delivery and so on. In other words it is things that the product does not do but customers may find them useful. Non tangible benefits such as product warranties offer customers peace of mind and demonstrate the manufacturer has faith in the quality of its product. IPHONE LEADS WITH THESE COMPETITIVE ADVANTAGES Apple's iPhone design has enabled it to become a smart phone market leader by making it best wireless smartphone and it was able to launch the iPhone 5, the 5th version of this product. There are other smart phones on the market but Apple has managed to design a product which people pre-order and camp overnight outside Apple's retail stores so that they can be the first ones to buy the product. A camera is expected to take pictures but there may be other benefits that the producer wants the buyer to enjoy such as a wide lens, face recognition, Flash and high definition videos which Iphone has best. In fact the ubiqtous use of some augmented benefits have turn some level three benefits into a customer expectation for customers expect mobiles to have manufacturer warranties. ANS (2) My business idea is

Chocolate Making

My chocolate business can offer something the grocery store candy can't and by this way I can be in business. I will start a business that creates chocolate candies and treats is a great new enterprise to initiate, and the business can easily be formed as a joint venture with an established catering service or restaurant. The purpose of forming the joint venture with an established business is to greatly reduce the amount of startup capital required to get the business rolling. A joint venture can enable me to use the partner's commercial kitchen, and in some cases the existing employees and customer base. The chocolate candies and treats can be sold to specialty retailers on a wholesale basis, or directly to chocolate loving consumers via a sales kiosk, factory direct outlet or website. Additionally, I will make sure to investigate the potential for forming alliances with charity groups, schools and organizations, as students, volunteers, or members can be enlisted to sell packaged chocolate candies. I can build a better, stronger business, by identifying and serving a particular customer group my target market. One of the first things i need to do is to refine my product so that my product is NOT trying to be 'same like other.' I would become a specialist and find ways to target my efforts to that age group and may be successful in capturing a bigger share of the market.

My only need will be to understand that people purchase products or services for three basic reasons: To satisfy basic needs. To make themselves feel good.

The important and importance of Ps of marketing mix in my business. To create the right marketing mix, businesses have to meet the following conditions: The product has to have the right features - for example, it must look good and work well and satisfy the needs and wants of the target market. The price must be right. Consumer will need to buy in large numbers to produce a healthy profit. The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation. The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output. People are the one who are the consumers and have to satisfy their needs fully. Physical Appearance is the first distinction of a product. A product could be easily recognized by its appearance. Process of the product is essential in marketing. This determines the capability of the product to supply the demand of the consumers. ANS (3) The promotional mix is the specific blend of advertising, public relations, personal selling and directmarketing tools that the company uses persuasively communicate customer value and build customer relationships. The major promotional tools: a. Advertising Is an unpaid form of non-personal presentation and promotion ideas, goods or services by an identified sponsor. E.g - Broadcast, print, internet and Outdoor. b. Sales promotion Is the short term incentives to encourage the purchase of sale of a product or service. E.g Discounts, coupons, displays and demonstrations. c. Public relations

Involves building good relations with the company various publics by obtaining favorable publicity, building up a good corporate image and handling or heading off unfavorable rumors, stories and events. E.g Press releases, sponsorships, special events and web pages. d. Personal sellings Is the personal presentation by the firm sales force for the purpose of making sales and building customer relationships. E.g - Sales presentations, trade shows and incentive programs. e. Direct marketing Involves making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. E.g Direct mail, telephone, catalog, telemarketing and kiosks. Each of the above components of the promotional mix has strengths and weaknesses. There are several factors that should be taken into account in deciding which, and how much of each tool to use in a promotional marketing campaign: (1) Resource availability and the cost of each promotional tool Advertising (particularly on television and in the national newspapers can be very expensive). The overall resource budget for the promotional campaign will often determine which tools the business can afford to use. (2) Market size and concentration If a market size is small and the number of potential buyers is small, then personal selling may be the most cost-effective promotional tool. A good example of this would be businesses selling software systems designed for supermarket retailers. On the other hand, where markets are geographically disperse or, where there are substantial numbers of potential customers, advertising is usually the most effective. (3) Customer information needs Some potential customers need to be provided with detailed, complex information to help them evaluate a purchase (e.g. buyers of equipment for nuclear power stations, or health service managers investing in the latest medical technology). In this situation, personal selling is almost always required often using selling teams rather than just one individual. By contrast, few consumers need much information about products such as baked beans or bread. Promotional tools such as brand advertising and sales promotion are much more effective in this case.

ANS (4) Marketing - Distribution channels A distribution channel can have several stages depending on how many organizations are involved in it:

Looking at the diagram above: Channel 1 contains two stages between producer and consumer - a wholesaler and a retailer. A wholesaler typically buys and stores large quantities of several producers goods and then breaks into bulk deliveries to supply retailers with smaller quantities. For small retailers with limited order quantities, the use of wholesalers makes economic sense. Channel 2 contains one intermediary. In consumer markets, this is typically a retailer. The consumer electrical goods market in the UK is typical of this arrangement whereby producers such as Sony, Panasonic, Canon etc. sell their goods directly to large retailers such as Comet, Tesco and Amazon which then sell onto the final consumers. Channel 3 is called a "direct-marketing" channel, since it has no intermediary levels. In this case the manufacturer sells directly to customers. An example of a direct marketing channel would be a factory outlet store. Many holiday companies also market direct to consumers, bypassing a traditional retail intermediary - the travel agent. What is the best distribution channel for a product? What factors should be taken into account in choosing the best distribution channel? Here is a summary: Nature of the product

Technical/complex? Complex products are often sold by specialist distributors or agents Customised? A direct distribution approach often works best for a product that the end consumer wants providing to a distinct specification Type of product e.g. convenience, shopping, speciality Desired image for the product if intermediaries are to be used, then it is essential that those chosen are suitable and relevant for the product.

The market

Is it geographically spread? Does it involve selling overseas (see further below) The extent and nature of the competition which distribution channels and intermediaries do competitors use?

The business

Its size and scope e.g. can it afford an in-house sales force? Its marketing objectives revenue or profit maximisation? Does it have established distribution network or does it need to extend its distribution option How much control does it want over distribution? The longer the channel, the less control is available

Legal issues

Are there limitations on sale? What are the risks if an intermediary sells the product to an inappropriate customer?

ANS (5) Several aspects of business and marketing dictate how prices need to be set in order for a company or retailer to be successful and reflect their objectives. Firstly, the amount of time that it takes to make a product (and thus the hourly rate of the person who has made it, if applicable) needs to be considered so that the producer is paid fairly. The cost of materials also needs to be taken into account so that the business does not lose money. On top of this, a companys aim is usually not just to break even but to make a secure profit. Deciding how much needs to be charged in order to achieve this is likely to be decided on the basis of previous patterns and future projections rather than being decided arbitrarily and will vary depending on the organisations size and output. Ideally, when starting out with a new product as an unestablished or unfamiliar company, your prices need to be high: This sets a standard, and for technology companies in particular, geeks or early adopters will be drawn in despite or even because of the high price tag. As more and more people begin to purchase the product, however, prices should become lower and more competitive: If your product is an innovative one, other similar products may soon begin to appear on the market, and you need to be able to compete with them, continuing to draw in new customers at the same time. However, your product and company ideals should not be compromised: If, as mentioned, you are trying to set a certain standard or attract a certain class of customer, your price should reflect this. Plus, you still need to continue making a profit. If your profit is based on the cost price, this is known as mark up and can be calculated by taking the cost price away from the selling price, dividing this number by the cost price, and then multiplying by 100. If your profit is based on the sale price, this is known as

margin and can be calculated by taking the cost price away from the selling price, dividing this number by the selling price, and then multiplying by 100.

Pricing Strategy
The task of adopting pricing strategies can be overwhelming for the manager or business owner who does not understand the nuances of selling to a particular market. For many, pricing is a summons to a land of confusion where there are few, if any, absolutes to confirm that you have chosen the right game plan. Once you know your customer base and the major trends in your industry, however, the pricing game becomes a matter of choosing a strategy and moving on it for as long as it continues to yield a profit. If there can be any such thing as good pricing practices, there are some tenets that should always be the foundation of pricing decisions:

Understand your true costs.


It may be tempting to estimate how much things cost based on previous experience or an average cost. However, if you want pricing to be accurate, it is important to itemize the cost of every ingredient, element or process it takes to make your product. Once you have exact figures, you can then determine how much of your cost can be profit. Without precise costs, you are leaving yourself open for an imprecise profit, and most often, a loss.

Know your own company and its goals.


Your pricing goals should be about increasing your bottom line, but they should also be about helping you achieve some of the visionary goals you have set for yourself and your company. If you want to secure a certain percentage of the market by a certain time, for example, it is best to allow your pricing strategy to reflect that goal. If your goal is to secure a reputation for quality, then your pricing strategy should include premium prices, as well as a premium product, to help drive that perception home for buyers.

Know your primary customer.


Ask yourself, Who is buying my product? It is crucial to understand not only the quality and variety your main customer type prefers, but you must also know how much money this customer is willing to spend for your product. Since many companies cater to more than one kind of customer, it is equally critical to know these things for each customer type who shops with you. Each one has a different need, so do not ever treat them all the same.

Do not underprice.
The immediate effect of underpricing is that it does not allow you to recover the costs you invest to produce what you are selling. There is also another danger. Market items that are priced extremely low are sometimes perceived as cheap, poor quality items rather than good quality bargains. While it may be your goal to sell a high volume of items because you have lowered your price to an almost unbelievable number, your customer base may not be willing to sacrifice quality to get a good deal.

Do not overprice.
There are many ethical reasons to avoid overpricing, but the reason that should hit home with more business sense than anything else is the fact that overinflated prices drive both existing and potential customers right into the sales outlets of your competitors. Too many customer losses result in a product that will not move.

Know your competition and your market.


It does not benefit any manager or entrepreneur to exist in a market that he knows nothing about. For this reason, it is important to follow trends, know who the market leaders are and why they are leading, have a general understanding of their strategies and know which factors outside of your market will have an impact on your product for future production. Many business owners find ways to distinguish themselves from others in the same market as a way to keep a leading edge. This may involved using the same marketing strategies but changing something about the product, or vice versa. Remember pricing and its impact on sales is all about perception, so it is important to make sure that you are controlling the perception of your products among your customers. Monitor your prices at least monthly. You have no idea how the price you set affects your profit unless you consistently are tracking what your profit does over a set period of time. This monitoring not only should include your overall profit, but it should also detail how each product you sell either turns or loses a profit. Individual products especially if they are popular have the power to make or break a company reputation and sales. In addition to these basic pricing principles, there are a number of specific strategies you can employ to set your prices.

I would be using Penetration pricing strategy and it is suitable for my company


Penetration Pricing A penetration pricing strategy is designed to capture market share by entering the market with a low price relative to the competition to attract buyers. The idea is that the business will be able to raise awareness and get people to try the product. Even though penetration pricing may initially create a loss for the company, the hope is that it will help to generate word-of-mouth and create awareness amid a crowded market category.

ANS (6) (i) I have searched far and wide to find the very best examples of guerrilla marketing, both in terms of their concept and also their success in spreading awareness and getting attention for their bussiness or cause. Guerrilla marketing is a type of advertising whereby you use methods and strategies that are unusual, unconventional and ultimately unexpected. The term was originally coined by author and marketer Jay Conrad Levinson by his book of the same name, and it is closely linked to the term guerrilla warfare which means to utilise opportunistic and atypical tactics in unforgiving and trying conditions. The goal of guerilla marketing is to create hype and awareness of your brand by using unique and original advertising techniques. Guerilla marketing is so popular because you can generally create a whole marketing campaign on a very small budget and as long as the concept is good, it will deliver huge profitability and success to your cause. E.g. The 3M Security Glass Challenge

3M were so confident in the strength of their security glass that they were willing to place three million dollars in between two panes of glass at a normal, every day bus stop. People were allowed to use their feet to try and break the glass, no-one even managed a scratch let alone actually breaking or cracking the glass. This example of guerrilla marketing works so well because it is an extremely public display of confidence both in terms of presenting an open challenge and putting three million dollars on the line. (ii)

Well I think Nefertiti guerrilla marketing tactics were good, inspiring and attracting. The concept of bringing Nefertiti guerilla marketing into the 21st century was not a bad idea as to create awareness and bringing the history to the people about the Great women of that century. The tactics they played were also good and attracting. (iii) In taking consideration of Sony Ericson campaign I think its fairly ethical, because they took there campaign like a public display of there product by show casing there product to others in a way that others will be handling them and unknowingly will take a glimpse of it in realtime. This way the product gets more attention and makes it marketing and product awareness more successful. References http://www.learnmarketing.net/threelevelsofaproduct.htm http://www.tutor2u.net/business/gcse/marketing_distribution_channels.html http://marketingdegreeadvisor.com/guerrilla-marketing-case-study http://www.schoology.com/course/35953181/materials/documents http://www.interferenceinc.com