Principles of Marketing

Topics: Marketing, Facebook, Decision making Pages: 10 (2358 words) Published: December 17, 2014


Contents
1.0 Introduction
1.1 Marmite

2.0 Consumer Behaviour
2.1 Motivations and involvement
2.2 How Marmite attempts to attract and retain customers
2.3 Appealing to attitudes and values

3.0 Marketing Mix
3.1 Product
3.2 Price
3.3 Place
3.4 Promotion

4.0 Conclusion
4.1 Recommendations
4.2 Conclude

5.0 Reference

Word Count 2154

Principles of Marketing Assignment

1.0 Introduction
The purpose of this report is to evaluate Marmite, using appropriate behavioural theories to analyse how the brand attracts and retains its customers through decision-making processes, motivation, values and attitudes. Applying a marketing mix analysis of the product with alternative marking models and strategies.

1.1 Marmite
The Marmite food company opened in 1902 based in Burton on Trent where its production still resides today. It is made from brewer’s yeast and famed for its strong savoury taste along with its nitrous value, offering important B victims. It is available in 125g, 200g and 500g jars as well as 200g and 400g squeeze bottles. In 2010 marmite launched an extra strong variation, Marmite XO. The brand has also expanded into snacks with breadstick, rice cakes, flatbreads and cheese all being available to the UK market (Unilever 2014). The spread can be found in all major supermarkets along with selected smaller chains and independent retailers. The market for savoury spread is dominated by own-label brands with a combined share of 76% of the total market. Marmite is still the leading contributor to the market with 2013 sales recorded of £41 million however this is at a decline of almost 5%. The increasing share of Dorito has seen a record sales rise of 4% be take their share to £25 million. They are followed by smaller market contributors Yarden and Discovery who have both generated around £2 Million (Mintel 2014). Marmite are looking to increase sales through other revenue streams with the brand eager to promote the products versatility for use as a savoury dip for crisps or carrot sticks along with increasingly popular bread alternatives such as bagels and pitta breads. Further the company halted its promotional deals in 2013 likely contributing to the decline (Mintel 2014)

2.0 Consumer Behaviour
Consumer behaviour is the “study of consumers and the processes they use to choose, use (consume), and dispose of products and services” (Tim Fisher 2014). Understanding consumer behaviour allows a business to gain insight into the needs and wants of their customers. This knowledge then informs marketing decision-making to ensure that these needs and wants are being satisfied (Hawkins and Mothersbaugh, 2007).

2.1 Motivation and Involvement
Maslow (1954) outlines a hierarchy of needs to classify the motivation behind consumers wants and needs in order of importance…. (Reference)

Figure 1: Maslow’s hierarchy of needs

The decision making model outlined by Engle, Blackwell and Miniard (1990) allows for a framework to for further analysis of a consumers motivation through 5 stages. These are problem recognition, information search, information evaluation, decision and post-purchase evaluation. See Figure 2

Figure 2: Engel, Blackwell and Miniard, Decision making process

With the models application to Marmite, due to the product being of a fast moving nature and a Low involvement purchase, “low-risk and low -involvement decision that are made quickly” (Brassington & Pettitt 2012). These factors suggest that the purchase will be carried out without the completion of the model as once the problem recognition stage is reached all others steps are of little significance to the customer. The purchase is more likely to be affected by influences.

The use of Facebook sampling ads feature to encourage users of the social network to become involved in the launch by inputting details to receive a free sample....

References: Amos, S. (2011). Marmite. Available: http://go.galegroup.com.ezproxy.mmu.ac.uk/ps/i.do?action=interpret&id=GALE%7CA267487514&v=2.1&u=mmucal5&it=r&p=AONE&sw=w&authCount=1. Last accessed 25th Oct 2014.
Bookseller Media Group. (2009). Horrid Henry Marmite promotion. Available: http://go.galegroup.com.ezproxy.mmu.ac.uk/ps/i.do?action=interpret&id=GALE%7CA209238151&v=2.1&u=mmucal5&it=r&p=AONE&sw=w&authCount=1. Last accessed 12th Oct 2014.
Branwell, J. (2014). Marmite claims Brand of the Year at Marketing Week Engage Awards. Available: http://www.marketingweek.com/2014/06/27/marmite-claims-brand-of-the-year-at-marketing-week-engage-awards/. Last accessed 22nd Nov 2014.
Brassington, F & Pettitt (2013). Essentials Of Marketing. Essex: Pearson Educational.
Campaign Live. (2008). IPA Effectiveness Awards 2008: Bronze Award - Marmite. Available: http://www.campaignlive.co.uk/news/860820/. Last accessed 22nd Nov 2014.
Chartered Institute of Marketing
Economic Times . (2014). Define Promotion . Available: http://economictimes.indiatimes.com/definition/promotions. Last accessed 26th Nov 2014.
Haymarket Media Group. (2010). Brand in the news: Marmite. Available: http://go.galegroup.com.ezproxy.mmu.ac.uk/ps/i.do?id=GALE%7CA224971696&v=2.1&u=mmucal5&it=r&p=AONE&sw=w. Last accessed 12th Oct 2014.
Haymarket Media Group. (2010). Marmite offers product sample via Facebook. Available: http://go.galegroup.com/ps/i.do?id=GALE%7CA219569438&v=2.1&u=mmucal5&it=r&p=AONE&sw=w&asid=6d8d191e239252b79ab309f5d554c2de. Last accessed 26th Oct 2014.
Mintel. (2014). Sweet and Savoury spreads. Available: http://academic.mintel.com.ezproxy.mmu.ac.uk/display/679644/. Last accessed 25th Oct 2014
Monger, B
New Media Age. (2010). Marmite uses Facebook ads for feedback. Available: http://go.galegroup.com/ps/i.do?id=GALE%7CA219805652&v=2.1&u=mmucal5&it=r&p=AONE&sw=w&asid=d611c6f04f8dc726fb4b1192352ea8b7. Last accessed 26th Oct 2014.
Unilever
Varley, R (2001). Retail Product Management: Buying and Merchandising . London: Routledge
Whitebloom, S
YouGov. (2013). Love it or hate it, Marmite’s creating a buzz. Available: http://www.brandindex.com/article/love-it-or-hate-it-marmites-creating-buzz. Last accessed 29th Oct 2014.
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