The paper is based on the ability to display effective use of the concepts of segmentation, targeting and positioning to increase the performance and achieve sales/profit targets of a company called Sweet Drinks plc which has been experiencing a steady decrease in sales over the past five (5) years. Appointed as the Strategic Marketing Manager, the main objective is to propose an alternative approach to achieving the company’s goals and objectives.
2.1 Show the macro and micro environmental factors which influence marketing decisions. Marketing Environment
The marketing environment consists of all the factors of a market which impact a marketing management’s decision when producing products as well as developing and maintaining profitable customer relationships with the target customers. The different levels of the environment are micro environment and macro environment.
Micro Environment is the internal and immediate aspects or factors of an organisation or its stakeholders which influence and affect the organisation’s operations, performance and decision making, creating value for customers. There are many key elements of the micro environment such as customers, competitors, suppliers, shareholders, employees, media, governments and banks. Customers
The customers are a key element of the micro environment and are connected stakeholders of an organisation and are vital for a profitable and sustainable organisation. Customers are the ones purchasing the goods and services of the organisation controlling either an increase or decrease in sales and profits occurrence within the organisation. As a result, organisations should locate customers or discover the target market, perform market research to understand their needs then provide sufficient goods and services of high quality and durability to satisfy the needs of the consumers efficiently. Customers can influence the nature of Sweet Drinks’ marketing activities in a positive way contributing to a profitable organisation. Sweet Drinks’ company needs to understand the consumer’s needs by performing market research. Conducted and analysed market research will allow Sweet Drinks’ to have knowledge of their target market and the goods preferred or required by the customer. Sweet Drinks’ can now produce sufficient goods in the quantities demanded to supply to the customers increasing the organisations level of production and profits. Sweet Drinks’ company is able to locate the geographic regions of their customers making it easier for the company to distribute the products efficiently to the customers. Customers are content with easy access or attainable products at affordable prices. Competitors
An organisation needs to take in to consideration and monitor consumer behaviour, trading conditions and changes in technology and the environment both locally and internationally, responding to those changes and threats quickly and effectively before and better than the competitors of the organisation do. It is important for an organisation to examine and monitor the competitors’ responses to changes so that there can be an advantage at enhancing the impact of their response and improving its position within the market. Monitoring and analysing the competitors of Sweet Drinks’ will give the company an advantage at knowing the better and more effective way to advertise to customers as compared to the way the competitors maybe undertaking as well campaigning or engaging in corporate social responsibility. Competitors also influence Sweet Drinks’ marketing activities by giving knowledge of product prices allowing Sweet Drinks’ to price products in such a way to make the organisation profitable yet win the consumers’ choice over the competitors. Product differentiation will create a competitive advantage for Sweet Drinks’.
Macro Environment is the external uncontrollable aspects or factors...
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