Marketing P1 In this assignment, I am going to be describing how techniques are used to market products in two organisations. The organisations I have chosen to look at are NHS (National Health Service) that is an LTD does not completely focus on making a profit, as it is government funded. The second organisation I have chosen to look at is Apple, which is a PLC and focuses mainly on making a profit, as the government doesn’t fund it. What is marketing? Marketing is the when an individual or a business promotes and sales their product or service, this includes doing extensive market research and promotion of that particular product if they want to make a major profit off that particular good. There are four different marketing principles which are “Communication with customers” “Utilising technology” “keeping ahead of competition” and understanding consumer needs. What are these companies and what do they sell?
Apple is an American multinational corporation that’s headquarters is in Cupertino, California. It designs, develops and sales consumer electronics such as IPhones and IPods. It also designs computer software and personal computers like the IMac or MacBook Pro. Apple is a Private company as it has enough funds to have different shares all over the world without funding from the government. The founder of Apple has recently passed away and his name was Steve jobs, the new CEO of Apple is called Timothy D. Cook. Apple is in fact one of the most successful and profitable companies in the world, as it has now become a multibillion dollar company over the years even though it originally started up in a garage.
The national health service (NHS) is one of the four publicly funded healthcare systems within the countries of the united kingdom. The NHS is just for England but the other three are the “NHS Scotland” “NHS wales” and “The health and social care in northern Ireland”. The NHS are primarily funded through the government (Taxation) so it doesn’t charge people most treatments or it charges very little to those that reside in England for treatments like operations. However it does offer free dental care to individuals that are under 18 years of are or people that are 19 years of age in full time education. They also provide free dental service to those that are pregnant or have had a baby within the last 12 months before their treatment. How are these companies different?
These two companies are very different, as I mentioned earlier, apple is a private company whereas the NHS is a public company. Apple is a profit company and their main goal is to obviously make a profit. The NHS is very different from apple as it doesn’t aim to make a profit, rather it aims to help the people of the England with injuries, dental cares and a few other things with minimal profit. Even though they don’t charge for most of their services, they still charge for quite a few of them. Now I am going to be talking about the Ansoff matrix.
What is the ansoff matrix? The ansoff matrix is a strategic marketing planning tool that links a firmâ€™s marketing strategy with is general strategic direction and presents four alternative growth strategies as a table. Below is a diagram of the ansoff matrix:
Different products of a company like apple for example can go into different areas of the diagram depending on what it is. For example the iPhone 5S would go into the new market development with an existing market part of the diagram for example. However if they wanted to expand on their firms into a new markets in different countries and released a new product there, then it would be diversification in a new market. This is very risky, it could lead to either great success or great failure because they donâ€™t know the market very well so the rate of their success could go north or south. As an example of one of Oxfamâ€™s products fitting in the diagram, the distribution of the paracetamol could be market penetration in a present market. It is a present product in a present market so there is little to no risk when selling this. The same amount of money will be made. If they released a new product, not everyone might try it but that would be product development in a present market.
Branding Now I am going to be talking about branding, what is branding? The simple definition of branding is the entire process involved in creating a unique name and image for a product in the consumers’ minds, through advertising campaigns with a consistent theme. In other words, it is an image that companies use to make people recognise them instantly. For example, apple has the white apple logo that everybody know because it has been well marketed over the years. It takes time, effort, maintenance and investment for successful brand building. A business must recognise its brand values – the central messages that it want customers to implicitly understand when they think of the brand. As mention, both the NHS and apple both have brands, apples brand il the apple logo whereas the NHS’s brand is just literally the letters NHS written in blue. How is branding used?
In the apple company, branding plays quite a significant part in their marketing operation. Pretty much anything to do with apple will have its logo on it, for a example their phones, iPod’s, iPad’s computers all have the famous apple brand on it. The NHS on the other hand don’t use branding as much as apple do, for example if an individual breaks his arm and the cast he gets is funded by the NHS, they wouldn’t put their logo on his cast. Branding can also exert a considerable influence over buyer behaviour. A strong brand like apples can stick in a customers mind and help to link products with a particular supplier or manufacturer.
Relationship Marketing Relationship marketing is where a business focuses on the long-term value of the customer. In other words, this means identifying the valuable customers, initiating relationships, maintaining and enhancing them to generate a sustainable profit. Some methods of relationship marketing are:
Decreasing advertisement to let word of mouth and press do the advertising for them (which is what apple has done recently) • People growing up with certain brands • Monitoring customer satisfaction • Attracting and retaining new customers •
Apple uses relationship marketing because it pays very close attention to consumer needs and sometimes even offers phones replacement free of charge if something goes wrong with your IPhone for example, this entices people to stay with apple on a long-term basis. In the NHS relationship marketing isn’t very relevant for younger people that are under 18 because they get free services from them, so naturally they are going to be the first choice for youth. However I think that the NHS does form bonds with people, for example the free dental care for a person that’s had a child in the last 12 months is quite a good deal and people wont stray away from them because they offer such services. This makes them more trustworthy and therefore builds customer relationships
Conclusion: Now that I have spoken about the Apple and the NHS I will now be concluding this essay. Apple and Oxfam are two very different businesses, whereas on offers free services and the other doesnâ€™t. They have completely different goals and different ways to about them.
"Ansoff Matrix." BusinessDictionary.com. N.p., n.d. Web. 24 Feb. 2014. "Ansoff Matrix - Google Search." Ansoff Matrix - Google Search. N.p., n.d. Web. 26 Feb. 2014. Author: Ben Martial; Edexcel (organisation) Title: BTEC level 3 Business Book 1 Publisher: London : Edexcel, 2006.