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1.0)       
INTRODUCTION

This Report will be focused on improving the experience of Addison Lee
customers, by targeting a younger audience of 16-25 year olds by June 2018. As
a newly appointed Marketing Assistant, the focus will be to carry out marketing
research to find out the strengths and weaknesses as well as opportunities and
threats by taking into account the changes to be applied to make the company
more competitive to its environment by examining the microenvironment and
macroenvironment. The report will further look into the evolution of marketing,
marketing environments, marketing strategies and the marketing mix to meet the
goals/objectives of Addison Lee.

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Production
Orientation: A business where the sole focus of the organisation is on production
efficiency which includes: price sensitivity, affordability, available
products, mass distribution and low-cost labour (Armstrong et. al. 2015,
pp.16). Therefore, management should concentrate on the efficient improvement
of production and distribution (Armstrong, et. al. 2015, pp.15).

Product
Orientation: The company’s sole focus in making the highest-quality products,
innovative features and performance that can be sold at the right price but
with insufficient attention to what customers really need and want (Egan,
2007).

Selling
Orientation: The successful management of the relationship between the company and
its customers by simply selling products using promotion techniques to attain
the highest sales possible (Armstrong, et. al. 2015, pp.15). Sales Orientated
organisations mainly use promotion techniques, such as advertising and personal
selling to draw in customers to buy the product or service within the shortest
possible time.

Marketing
Orientation: Companies that are market-orientated depends on knowing the needs/wants
of its target customers to meet customer satisfaction and the goals of the
organisation. Through continuous market research surveys, companies with a
strong market-orientation can detect customer needs before competitors
(Armstrong, et. al. 2015, pp.16).

 

II.           
Identify and explain the orientation
adopted by Addison Lee, and provide two (2) examples that demonstrate Addison
Lee’s use of the approach

 

These are the orientations adopted by Addison Lee:

 

·        
Production
Orientation

·        
Product
Orientation

·        
Selling
Orientation

·        
Marketing
Orientation

 

Production Orientation: Addison Lee provide high quality
service which range from standard cars to fit every journey and occasion,
airport transfers, executive services, events, coach hire, travel-agents, same
day and next day courier service and international delivery service to meet the
needs and expectations of customers (Addison Lee Website, 2017).

Product Orientation: Addison Lee provide a fleet of
executive cars, like the Mercedes E- Class and S- Class; which are not older
than three years. Cars fitted with complimentary 4G Wi-Fi, Mobile phone
charger, TV and DVD player, leather interior, electric blinds and personal
climate control (Addison Lee Website, 2017).

Selling Orientation: Addison Lee focuses on sales and
promotion techniques which includes personal selling, advertising and promotion
through its Website and Mobile App (Addison Lee Website, 2017).

Marketing Orientation: Addison Lee markets its products according
to needs of its customers and includes guaranteed safety, exclusive discount
offers, personal accounts and 4G WIFI as well as mobile phone chargers (Addison
Lee Website, 2017).

 

Examples that demonstrate Addison Lee’s
use of approach:

 

Selling Orientation: Addison Lee achieve this through
promotion technique such as advertising and personal selling on its Website and
app (Addison Lee Website, 2017).

Market Orientation: Addison Lee provide guaranteed safety
and security, exclusive discount offers like
10% off Executive and Courier bookings and 20% off Airport journeys (Addison
Lee Website, 2017).

 

 

 

3.0)       
Task 2: Marketing environments

I.             
Describe marketing environment analysis
and discuss why it is important for Addison Lee, prior to setting a marketing strategy

Marketing Environmental analysis is a strategic tool that involves the
actors and forces outside marketing which affect the ability of the marketing
managers to build and maintain successful relationships with its target
customers (Armstrong et. al. 2013, pp.94).

It comprises of a Microenvironment and a Macroenvironment:

·        
Microenvironment: the actors
that are close to the company, which affect the ability of the company to serve
its customers. Example, company, marketing intermediaries, competitors, public
and customers which are the most important actors in the company’s
microenvironment (Armstrong et. al. 2013, pp.95).

 

                                                           

 

 

Figure 1.0  Actors in The Microe

·        
Macroenvironment: the bigger
and wider outside societal forces that affect the actors in the
microenvironment. Example, demographic,
economic, natural, technological, political and ultural (Armstrong et. al.
2013, pp.98).

 

 

 

 

 

 

Figure 1.1 Major
Forces in the company’s Macroenvironm

 

 

 

Market Environmental Analysis is important for Addison Lee to identify
the internal and external environment elements which can affect the
organisational performance. The analysis enables assess the level of strengths
and weaknesses, opportunities and threats (SWOT) which can affect the
organisation’s performance. These evaluations are later translated into the
decision-making process to setting an effective marketing strategy that will be
viable to the company and in building a strong relationship with the consumers
(Armstrong et. al. 2015, pp.78).

 

 

Economic
Factor: The state of the economy affects the
ability and willingness of customers to buy product (Palmer, 2007, pp.51). E.g.
Interest rates, taxation, inflation rates, savings ratio and Gross Domestic
Products (GDP), income distribution (Palmer, 2007,
pp.51).

 

·        
Gross
Domestic Product (GDP)

An economic factor that could
impact Addison Lee’s marketing decisions could be a UK GDP decline which leads
to recession. A recession would be a threat
for Addison Lee because it leaves consumers with not much disposable income
meaning not much purchasing power. Being the case, marketing decisions would
have to be much more cost orientated, in the sense that promotion techniques
such as advertisement which inform customers that Addison Lee services will be
inexpensive but still of high quality rather than using marketing words like
“premium priced” in order to adapt to the current marketplace and retain
customers (Palmer, 2007).

 

·        
Sociocultural
Factor

A sociocultural factor that
could impact Addison Lee’s marketing decisions could be, example, lifestyle,
culture, beliefs, attitudes and values (Lancaster
et. al. 1999, pp.56).

Lifestyle:
influences purchase behaviour. Example, the use of smartphones is the common
means of communication for young people, Addison Lee’s marketing decisions
could be directed towards the use of mobile marketing, to ensure that their
marketing campaign stimulates (AIDA) Attention, Interest, Desire and Action
from their target customers (Lancaster et. al.1999, pp.310-311.

 

III.          
Considering the micro environment of
Addison Lee, identify two key competitors and discuss their potential threat to
the business

 

Two key competitors of Addison Lee, are Uber and Black Cab;

·        
Uber

Unlike Addison Lee, Uber drivers know customers
destination upon booking, seamless payment done via the Uber app, operate anywhere
at anytime without reservation and registered regular drivers can sign-up with
Uber and use their own vehicles (Uber Website, 2017).

 

·        
Black Cab

As for Black Cabs, they can be easily recognized by its signature shape
and look with an assortment of colours, guarantees passengers comfort and
safety through its longevity, can be easily hired anywhere and anytime by
hailing without having to make a booking and are a cultural staple for visitors
and Londoners (Black Cabs Website, 2017).

 

Both competitors are a potential threat because they operate in the same
marketplace as Addison Lee which is, London.

 

 

 

 

 

Two Internal Environmental Factors; Employees and Leadership
(Strengths/Weaknesses of Addison Lee business operation:

·        
Strengths –
Culture of the Organisation

A company’s organisational culture includes the behaviour of members,
visions, beliefs, habits and values that lead to overall organisational
performance (Armstrong, et.al. 2015, pp.177). Addison Lee’s organisational
culture consists of the objectives, policies, procedures, organisational
structures and systems which influence consumers behaviour. For example,
Addison Lee have well trained and experienced drivers that guarantee safety,
there is transparency when dealing customers and clients, excellent customer
service and up to-date technology to meet customers’ needs for seamless
transaction (Addison Lee Website, 2017).

 

·        
Weaknesses –
Employees of the Organisation

If workers do not have security, feel accepted and valued by the
organisation, have packaged benefits, flexible working hours that fit around
their personal schedules, opportunity for growth or promotion within the
company they will demotivated to work harder and meet company interest and
overall goals (Palmer, 2009, pp.65).

 

4.0)        

Market Segmentation
is defined as the process by which a market is clearly divided into different
groups of customers with similar needs and characteristics; and display similar
responses to marketing actions (Baines, et. al. 2014). Unlike Mass Marketing,
in market segmentation, the overall market consist of many smaller segments and
each group is different from the other. For example, this marketing approach
help organisations to identify one or more appealing segments to which they can
profitably target their products and marketing effort (Kaliski, 2007). Dividing
the market into groups will enable Addison Lee to direct their limited
resources to target specific customers effectively and efficiently in order to
produce best returns of the company’s investments through sales by reducing
competition whilst keeping their target customers satisfied and identify new
opportunities for growth and expansion (Kaliski, 2007).

 

The four major segmentation approaches
include: demographic, psychographic, behavioural, and geographic (Armstrong et
al, 2015, pp.193).

Demographic
Segmentation: example,
life-cycle, age, gender, income and education (Armstrong et al, 2015, pp.193).

Psychographic
Segmentation: example,
social-class, personality and lifestyles (Armstrong et al, 2015, pp.193).

In this report, the focus will be on
Behavioural and Geographic Segmentation:

Behavioural
segmentation: it
divides the market into groups according to attitude, knowledge, response and
use of the product by consumers (Kaliski, 2007). If Addison Lee (ADL) adopt
this approach, they will make more sales because the company will be able to
determine where their products are needed, when and why so that they can divert
their limited resources in a cost-effective way by carefully designing products
and a market program to meet the needs of their customers (Armstrong et al,
2015). If not, the company will develop brands that will not meet customer
needs resulting to lower sales and apparently lower profits or loss.  Therefore, using the behavioural approach
will enable ADL to target many market segment and hence make separate offers
for each (Armstrong et al, 2015) according to purpose, ability to pay, and
personality for sales increase and a stronger market position (Armstrong et al,
2015).

Geographic
segmentation: is define
as the division of a market into different geographical units such as cities, regions,
countries, states, and neighbourhood (Armstrong et al, 2015). By adopting a
geographic approach, ADL will be able to develop products as well as their
promotion sales effort and advertising based on the local needs of people in
that area (Armstrong et al, 2015). ADL should adjust prices continuously for
increase in sales of their products to make profit (Armstrong et al, 2015). If
prices are not differentiated to meet the characteristic needs of individual
customers and situations in different regions or cities, the company will
experience a fall or rise in sales in some areas and therefore lower overall
profit or loss. On the other hand, if prices are adjusted to fit different
localities the company will experience an even growth in all areas of operation.

 

Product: is the range of goods or services a
company offers to its target customer (Boddy et al, 2011). the company products
such as minicabs, taxybikes, coaches and private jets services must reflect the
way customers think about them when compared to other competitors. (Zeathaml,
et al, 2009).

Price: it is the value placed on the service
(Zeathaml, et al, 2009). Cost of the service must be flexible, cheap and
affordable for frequent use of services. (Boddy et al, 2011).

Promotion: A way that the company inform its
customers about the advantage of using their products (Boddy et al, 2011).
Example, off peak weekend fares, sharing ETA, personalised deals by email or
text online, company app and website (Zeathaml, et al, 2009).

Place: is the people involved in making the
products available to the customers (Kaliski, 2007). Distribution channels
ensures the product is available in the place it is needed (Kaliski, 2007).
Example, increase in the number of fleet drivers from 3,600 to 4,500 by ADL.

People: the individuals involved in providing
service for customers (Blythe, 2009). Company staff should be rewarded,
motivated, trained to deliver services to customers. Customer increase their
purchases with companies with whom they have a strong relationship (Blythe,
2009).

Process: the set of activities which together
produce customer satisfaction (Blythe, 2009). Addison Lee should adopt
processes that are linked together to deliver a set of benefits to consumers
(Blythe, 2009). Example, all their cars are fitted with 4G WIFI, different
models of phone chargers, standard climate control tinted windows, flexible payment
system of cash, card or Addison priority account (Addison Lee Website, 2017).

Physical
evidence: the
environment in which the service is delivered and where the company and
consumers interact including any tangible equipment that helps to promote the
communication of the service (Zeathaml, et al, 2009). Examples, company new
logo and colour palette in yellow, black and slate, appearance of driver
(Zeathaml, et al, 2009). 

 

 

Product: The company must always use vehicles
that have comprehensive warranty, fully serviced with licensed and insurance,
and equipped with modern technology installations to capture consumers lifetime
values. Products must be attractive and readily available for use in the place
and time needed for customers convenience (Armstrong et al, 2015).

Price: Addison Lee must calculate and
forecast suggested prices its competitors will charge customers, and then
set-up its own dynamic prices to allow the differences that exist among
customers aged between 16-25 years, their location, type of service needed will
help the company to dominate the market through lower costs and beat rival
companies (Armstrong et al, 2015). The company can also lower their prices and
give discount to loyal customers who buy their product frequently (Armstrong et
al, 2015).

Promotion: by using this tool effectively through
advertisements, sales promotion, public relation, personal selling and direct
marketing, the company can be assured of building-up a strong relationship with
the target market with the aim of stimulating a dialogue that will lead to a
better and profitable business both in terms of more profits from increased
sales due to capturing a large share of the market (Armstrong et al, 2015).

 

Taking into
account Addison Lees goals of wanting to grow the business by 3% by targeting a
younger demographic of 16-25 year olds by June 2018, Addison Lee will need to
conduct a market research and carry out extensive marketing mix procedures and
adopt changes to their marketing strategies to reach their target audience.

 

  

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