Principle of Marketing Assignment 2 BTEC Nguyen Huu Phong 2017

ASSIGNMENT 2 FRONT SHEET
Qualification

BTEC Level 5 HND Diploma in Business

Unit number and title

Unit 4: Marketing Principles

Assignment due

Assignment submitted

Learner’s name

Nguyễn Hữu Phong

Assessor name

Learner declaration:
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.
Learner signature

Date

Grading grid
P2.1 P2.2 P2.3

Assignment title

P2.4 P2.5

M1

M2

M3

D1

D2

D3

Marketing Analysis and Marketing Strategy

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In this assignment, you will have opportunities to provide evidence against the following criteria.
Indicate the page numbers where the evidence can be found.

Assessment criteria

Expected evidence

Task
no.

LO2. Be able to use the concepts of segmentation, targeting and positioning

2.1 show macro and micro
environmental factors
which influence marketing
decisions

- Explain what are marketing
macro and micro environment
factors and show how these
factors influence to the marketing
activities

1

2.2. propose segmentation
criteria to be used for
products in different
markets

- Explain what are segmentation
and
segmentation
criteria,
Propose suitable segmentation
criteria to segment the market of
your product into different
segments.

2

2

Assessor’s Feedback


2.3 choose a targeting
strategy for a selected
product/service

Explain
different
targeting
strategies and choose a targeting
strategy that is best suited for
your product in the market

3

2.4 demonstrate how buyer
behaviour affects marketing
activities in different buying
situations

Explain consumer behavior and
demonstrate how consumer
behavior affect to marketing
activities in different situations

4

2.5 propose new positioning Explain what is positioning

strategy and propose a new
for a selected product
positioning strategy for your
/service
product

5

Assessment criteria
Merit descriptor No. 1 (M1)

Expected Evidence

Feedback
(note on Merit/Distinction if applicable)

- Evaluate the influence of
marketing macro and micro
environment factors to the
marketing activities of your
product
- Identify complex
organization’s marketing
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situation when proposing
segmentation criteria
- Identify complex
organization’s marketing

situation when choosing
targeting strategy
- Describe your target
consumer buyer behavior
and demonstrate how their
behavior should affect to
your marketing activities
- Identify complex
organization’s marketing
situation when proposing a
new positioning strategy for
your product
Merit descriptor No.2 (M2)

- Relevant data analysis
methods are effectively
applied to analyze the
influence of the micro and
macro marketing
environment factors to the
company’s marketing
activities
- Relevant marketing
theories and models are
used to describe targeted
consumers (consumer
behavior model, type of
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consumer buying behavior,
consumer buying process)
- Relevant theories are
applied to propose
marketing strategy
(effective segmentation,
selecting target segment,
positioning map…)
- A wide range of
information (relating to
marketing environment,
consumer behavior, and
marketing strategy) is used
to support the arguments
Merit descriptor No.3 (M3)

Distinction descriptor No.1 (D1)

- clear assignment structure
with appropriate academic
writing
- marketing terminologies
are correctly used (for non
marketing audience)
- the assignment is written
with consistency and
coherence
- Propose appropriate
recommendations for your
company to proactively

response to micro and
macro environmental
factors
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- Critically evaluate your
own proposed
segmentation criteria
- Critically evaluate your
chosen targeting strategy
- Propose appropriate
recommendations to your
company to improve its
response towards
consumer buying behavior
- Critically evaluate your
proposed positioning
strategy
Distinction descriptor No.2 (D2)

- A wide and quality
research for the business,
its marketing environment,
its customers, has been
done to provide
information for this
assignment
- A primary research to
understand consumer

buying behavior is
employed
- substantive information
related to support your
marketing strategy proposal
(segmentation, market
targeting and positioning) is
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effectively searched and
used
- Sources of information
used are correctly cited.
Distinction descriptor No.3 (D3)

- Generate your own ideas
on marketing environment,
marketing strategy and
consumer behavior for the
organization through the
assignment
- Effectively self-evaluate
your own arguments and
recommendations for the
organization on marketing
environment, buyer
behavior and marketing
strategy
- Innovative and creative

thoughts are applied in the
proposed marketing
strategy for your product

7


Summative feedback

Assessor’s Signature
IV Grading Check:

Date
Comments if any:

Agree
Disagree

Modify grade to

IV Signature

Date

8


<ATTACHED EVIDENCE>

Contents
Introduction

11

1. Marketing Environment
2. Segmentation

20

3. Targeting Strategy
4. Buyer Behavior
5. Positioning
References

14

24

29

31
35

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Introduction
In a business that has many different departments handle different roles and Marketing
Department is one of them. The Marketing Department has a duty to introduce, promote and

market the company's products to customers in many different ways. A company has the
effective marketing strategy and intelligence would have been a huge source of revenue and
profit plentiful. In other words, the marketing department was the source of the powerful
impact that helps sales of a product or service of the company. Understand that, whether as
a small and medium company or a large corporation, they are pouring a lot of money on the
marketing with a desire to shape the best products in the mind of client and help bring much
profit.
Apple - one of the largest technological corporations in the world is a good example.
Apple has been successful as now not only because of changing their product well and
breakthroughs but they also have the proper marketing strategy to put Apple products to the
consumers in the best way. Founded in 1976 in a small garage in California by 3 people are
Steve Wozniak, Ronald Wayne and the legend of the world of technology - Steve Jobs. For
more than 40 years of establishment and development, Apple from a garage has risen to
become one of the technology company in the world with the most expensive brand and be
priced 586 billion dollars in 2016 according to Forbes.

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Source: Internet
From the Apple II to make the world flutter in the 1977, and Macintosh - desire of
graphic design at the time, the next is the iPod with "1000 songs in your Pocket", iPad - the
best tablet that we can buy now or Macbook enthralled millions of people , and finally the
iPhone - the most popular smartphone in the world with more than 1 billion were sold out.
Every product Apple ever brought to the world are very good products with design and
features ahead of time, however beside that we can't deny the skillful of Marketing
Department helping the Apple products succeeded as now.

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Source: Internet
The iPhone 7 is the key product and most important product of Apple in 2016. We
will analyze the marketing strategy and the plan that Apple is prepared to retain the loyalty
of Apple and entice more customers.

Source: Apple

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1. Marketing Environment
The business environment is divided into two types are the environment micro and
macro environment. These factors in micro and macro environment influence too much to
marketing decisions of a business.

1. Micro environment factors.
There are six micro-environmental factors influence the business strategy of a
business and the role of the leader in that business is to find out and analyze thoroughly to
give the proper marketing strategy as well as the long term plan in the future.

Micro environment factors – Source: Internet
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Customers
The customer is the goal of any business are headed. They are the ones who will buy
and use the products or services of a company. Any business would also like to retain its
customers with excellent products. They must always analyze customer groups to devise
effective strategies and successful. Apple also do that, they retain their customers with the

best products of the hardware and software beside of the support services worldwide. Those
that meet the expectations and make customers happy. More specifically, with the iPhone 7
brings not much new features but with a better finishing of their products, Apple once again
back to retain those loyal customers and get new customers.

Employees
Employees are the ones who bring to success for a business. To attract good
employees, you must have the effective strategies as remuneration policy, the salary
attractive, many opportunities, to attract and retain these employees in the business. Apple
has tens of thousands of employees around the world with the staff very good. They have
contributed to create a great product of Apple and help to bring in huge revenues from things
they create to Apple. In other words, they are the deciding factor of the success of a company.

Suppliers
This is considered a very important factor in bringing the product to the consumer. A
business that wants to maximize the best profit they must manage the supply chain and
distribution channels of themselves in an effective way. Manage the product marketed, as
well as the inventory of products to customers to minimize sources of losses. Apple is very
famous in the management of supply chains and their stores. They optimize supply chain
and distribution channels such as all authorized dealers, Apple Store, ... This helps them get
a about no small profit.

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Shareholders
These people will bring a business the resources to help them invest and develop their
business better. Instead of having to borrow the debt of the Government or of an organization
with high interest rates, the investors funding resources will be of great help for business if
the business convince those investors with the products, services or ideas of potential.

However, the receipt of these investments from shareholders will also bring some
shareholders control of certain business. Apple is a large corporation with many shareholders
so all their products when the market must bear the pressure of shareholders when it does
not bring profit as expected. With sales of several products, including the iPhone 7 do not
have many breakthrough, so investors are pressuring a lot to CEO Tim Cook.

Source: ABC News
Media
Media activities are also important factors that a business needs to have the right
strategy to promote the business to customers. The media will help the positive things of a
widespread product in the consumer community to help consumers recognize more easily,
beside that the negative things are also easily happened if the product or service is not good.
Apple has many special communications activities for the social community to build real
good company image in the eyes of consumers and consumers will buy Apple products.
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Competitors

Competitors of Apple in smart phones industry – Source: Internet
Competition is good to help the business grow better when the business must always
improve their products so that customers recognize that their products are better than their
competitors. As many competitors, the market share of a business as being broken down but
if there is no competition, a business will grow very slowly. Apple has a lot of competitors
such as Microsoft, Google, Samsung and many other opponents. That's why Apple must
constantly improve and develop its products if they do not want to be leave and customers
will buy products of competitors.

2. Macro environment factors.

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Macro environment factors – Source: Printerest
The macro environment factors is the relationship and not closely related, closely with
a business. However, the macro environmental factors as the risks, opportunities will affect
businesses in a long period of time. These factors influence to a business so that businesses
also need to have clear and proper preparation to adapt to each case. The macro environment
factors include education level; cultural lifestyle, demographic factors, technological factors,
political and legal forces, social and cultural forces

Education level; culture and lifestyle
These factors affect the customer's purchase decision. For customers who have the
education level is not high, then their needs do not require too much or culture of their
lifestyle is like taking a brand and loyal to that product throughout many years. For example,
Apple will not sell any iPhone if that area had lower education levels and consumers do not
like the phone or they are loyal to feature phones of Nokia and do not want to change them.
Apple's task at the moment is the analysis of each market area and give the effective
marketing strategy to better understand customers and buy the product.

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Demographic factors
This factor depends on the age, gender and profession. The clients in this segment
there are many reasons not to want to change the daily routine because of work or they are
women and there is not much in demand. More specifically, a client does not want to change
his phone to the iPhone because the Galaxy s5 is helping him resolve the work efficiently.
Apple should have effective marketing strategies to impact the features and help customers
realize why they have to choose the iPhone 7 to change habits and prove it can replace old

products.

Technological factors
The full machinery, process technology and equipment to manufacture products in a
certain place that also impact a business and marketing strategy of the business. iPhone 7 are
produced in factories in China because employees here are cheap and sufficient equipment
to produce the equipment. If the iPhone 7 are produced in other countries, the problem of
the technology environment will affect the price of products and the impact on the marketing
strategy of the product.

Political and legal forces
The issues related to government policies such as tax incentives or the conditions in
that country. Apple brought a lot of jobs in a particular country and the Government that
could bring more incentives for Apple. The Government affect to a business and can do for
a business marketing strategy that were difficult.

Social and cultural forces
The factors of cultural, social, behavioural and values impact on marketing strategy.
For example, if the product does not meet a number of criteria and does not fit in with the
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environment, then that product will be wiped out of the market. So, for the cultural
environment, Apple needs to bring real good products and meet the required conditions.

2. Segmentation
According to Economictimes stated that: "Segmentation means to divide the
marketplace into parts, or segments, which are definable, accessible, actionable, and
profitable and have a growth potential.”
Apple has many types of products suited to the needs of each client. However, with a

certain product, the Apple production of it for the entire world and focus on the high-end
segment. Apple almost ignoring the medium segment and cheap for their products. Based on
a few aspects that Apple would focus their product on those.

Apple target segment
Type of
segmentation

Geographic

Devices:
iPhone, iPad,
Mac, iPod

Services: iTunes
and the iTunes
Store, Mac App
Store, iCloud,
Apple Pay,

Operating system &
software: iOS, OSX,
iLife, iWork

Region

US and
international

US and

international

US and
international

Density

Urban

Urban

Urban

Age

20 – 45

18 – 30

20 – 35

Segmentation
criteria

20


Demographic

Gender

Males &
Females
Bachelor
Stage

Life-cycle stage

Newly
Married
Couples

Males &
Females

Males & Females

Bachelor Stage

Bachelor Stage

Newly Married
Couples

Newly Married
Couples

Full Nest I
Full Nest II
Income

High earners

High earners

High earners

Students

Occupation

Professionals,
managers and
executives

Professionals,
managers and
executives

‘Hard core
loyals’

‘Hard core
loyals’

‘Switchers’

‘Switchers’

Degree of loyalty

Professionals,
managers

‘Hard core loyals’
‘Switchers’

Sense of
achievement
and belonging

Behavioral
Benefits sought

Selfexpression
Speed of
service,
advanced

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Speed of service

Efficiency

Efficiency

Speed of service

features and
capabilities
Personality

Determined
and ambitious

User status

Non-users,
potential users

Social class

Middle and
upper classes

Determined
and ambitious

Determined and
ambitious

Users

Users

Non-users,
potential users

Non-users,
potential users

Middle and
upper classes

Middle and upper
classes

Resigned

Psychographic
Lifestyle[1]

Aspirer
Succeeder

Aspirer
Succeeder
Explorer

Aspirer
Succeeder
Explorer

Explorer

Apple Segmentation, Targeting and Positioning - Source: research-methodology
Geographic: Apple will market their segmentation by two elements is the region and
density. Of course, Apple will focus on these priority markets and demand using of

technology. Besides the iPhone, Apple has a lot of other products for hardware, software and
services, such as iPad, iPod, iTunes, ... Their goal is to bring all of their products to people
around the world, particularly concentrated in the populous city. Apple is trying to focus
resources on the Chinese market that they have reviews of attractions the most populous
market in the world. To increase sales of the iPhone 7, Apple needs a potential market and
according to them that is China.
Demographic: Apple will rely on aspects such as age, gender, product life cycle that
clients use, high income and relied on the careers of customers that Apple want to navigate

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to. The table above has very clear analysis of the audience that apple bound through these
factors based on their products and services. We can see most of the Apple products from
products to services are focused on occupation is professional with high income and stable
job. Because Apple just want to focus on high-end products so customer segment that the
airline is headed to those age 20 with high income and professional work.

Source: Slice intelligence
Behavioral: in this aspect, Apple would concentrate to the loyalty of the consumer for
the product, personality as well as their status. Often people who use Apple products tend to
be loyal to the product because of a few factors related to features. Apple knows that their
customers in ages like young energetic, often taking pictures and travel. Through it, they
bring a nice shooting capability, water-resistant features and increased durability for the
iPhone. It stimulates the renewal needs of the customers that Apple is headed.
Psychographic: Apple will focus on social class and the lifestyle of the customer
segment where Apple is headed. Apple towards the middle class and high class. Customers

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who require the elegance in design as well as brand. With the iPhone, Apple has 7 meet that
and by appropriate marketing strategies, they have convinced many consumers.

3. Targeting Strategy
According to vinalink confirmed that: "the target market is certain customer
segmentation that the business towards, or in other words, the target market is the market
consists of all the potential customers of a business, and that business's mission is to attract
and make customer satisfaction from that market."
According to Bussines Dictionary confirmed that: "Targeting Strategy is the selection
of potential customers to whom a business wishes to sell products or services. The targeting
strategy involves segmenting the market, choosing which segments of the market are
appropriate, and determining the products that will be offered in each segment."
Any company would also have a target market and its strategy to focus on its target
market. Apple is also that, they divided their target market into 5 types such as teenagers,
business clients, university students, children and adults. Depending on the group that Apple
has the product and marketing strategies to bring products to each of its client groups.

Teenagers
This is the customer group is primarily the young with many demands on the use of
social networking, photography, entertainment applications with high frequency. Apple will
use two types of products are iPod and iPhone to focused to meet the needs of this client
group. It is also considered the primary target market that Apple wants to focus sharply.
Specifically, they have improved and upgraded the ability to photograph a lot is selfie
movements in response to the youth, besides love to travel and operate under water, Apple
also brings water-resistant features as well as enhance the durability for their latest
generation of iPhones is iPhone 7. The move shows that Apple are looking to focus on groups
of customers are young teenagers.

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Source: Internet

Business clients
In recent years, Apple has focused more for enterprise customers. They want their
products are popular with the business because this is a full of potential target market. Apple
brings to the many product lines to focus on solving work and communicate with customers,
the things that businesses need to optimize productivity. Specifically, Apple has the iPhone,
iPad, Macbook and iMac to focus on business customers. Apple also shows clearly how they
do seriously for this client group with the release of the iPad Pro with lots of accessories to
solve problems rather than personal. If only the hardware, Apple never gets the business
customers use, however the master of software and hardware helped the "giant" of Cupertino
dominates this market. Apple created is an experience in sync between devices and help
tackle the job in the best way. Combine all those things, with an effective strategy, then
Apple is gradually dominate this customer group.

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