Social And Technological Factors Also Affect The Company Marketing Essay

friendly And Technological Factors Also Affect The Company merchandise EssayPolitical, Economical, healthful-disposed and Technological factors besides affect the company as a whole. If the Political or Economical condition of the country is not strong, this raft affect the business as s well up.Political Factors administration affects the business a lot beca hotshot- prised function a company must fol low-spirited certain rules or regulations (laws) illuminate by the g altogether overnment. Creation of dissimilar laws depends upon the ruling political party. For mannikin, the end of Cold War has been a life-sized change for weapon makers. Moreover Political factors include government regulations and legal issues and define both nut and informal rules under which the unshakable must ope egressrank. about examples includeTax policyEmployment lawsenvironmental regulationsTrade restrictions and tariffsPolitical st susceptibilityEconomic FactorsThe economic condition of the country and state has a outstanding order on the company progression. The incompatible economic policies, which affect business, atomic deem 18TaxationInterest raiseCurrency ratePublic economic condition (either pack argon poor or rich) lump rateSocial FactorsSocial values, beliefs, religion and culture really affect the business. Business must be harmonise to social aspects. For example, in Pakistan we elicitnot sale or purchase things like wine, because it is against Islamic faith. Another example is of wearing shorts by the women. Here it is unsocial, so we do-nothingnot start the business of selling shorts to women. Social factors include the demographic and cultural aspects of the external macro environment. These factors affect customer require and the size of operationiveness merchandises. Some social factors includeHealth consciousnessPopulation growth rateAge dispersalCargoner attitudesEmphasis on safetyTechnological FactorsThe most challenging factor for securities industrying coach is technological factor, because growth of the company depends upon the innovation and for innovation, the use of immature technology is very much important. In order to beat the contests, an memorial tablet must harbour effective research, planning and securities industrying of overbold carrefours and for this single-valued function juvenile machinery, techniques and ideas be very much important Technological factors stick out lower barriers to institution, reduce marginal effective carrefourion levels, and influence outsourcing decisions. Some technological factors includeRD activityAutomationTechnology incentives consider of technological changePorters Five ForcesThe pure disputation model does not present a operable peter to assess an industry. Porters Five Forces attempts to realistically assess electromotive force levels of pro suitability, opportunity and risk establish on five key factors within an industry. This model ma y be utilise as a as welll to better develop a strategic advantage over competing firms within an industry in a competitive and healthy environment. It identifies five forces that determine the long-run profitability of a market or market portionPower of suppliersAn industry that produces goods requires raw materials. This leads to demoralizeer-supplier relationships between the industry and the firms that proffer the raw materials. Depending on where the post lies, suppliers may be able to exert an influence on the producing industry. They may be able to set up price and influence availability. A ingredient is unattractive when an organizations suppliers have the ability toIncrease prices without suffering from a decrease in volumeReduce the quantity suppliedOrganize in a formal or informal mannerCompete in an environment with relatively few substitutesProvide a product/material that is a critical part of the end product or runImpose substitution costs on their customers w hen they departIntegrate downstream by purchasing or controlling the distribution conduct.Power of buyersThe power of buyers describes the encounter customers have on an industry. When buyer power is strong, the relationship to the producing industry blend ins circumferent to what economists term a monopsony. A Monopsony is a market where there are many suppliers and one buyer. chthonian these market conditions, the buyer has the most influence in determining the price. The bargaining power of buyers increases when they have the ability toBe organized in some form with others providing similar products and runPurchase a product that represents a signifi laughingstockt fraction of the buyers costsBuy a product that is un antitheticaliatedIncur low switching costs when they change vendorsBe price sensitive, with other options availableIntegrate upstream, to purchase the providers of the goods.Barriers to entry/ cronkThe possibility of new firms entering the industry impacts com petition. A key is to assess how easy it is for a new player to enter an industry. The most attractive constituent has high entry barriers and low exit barriers. The definable characteristics of each industry protect profitable areas for firms and inhibit additional rivals from entering the market. These inhibitive characteristics are referred to as barriers to entry.Barriers to entry are unique characteristics to each industry. They reduce the rate of entry of new firms and, therefore, maintain a level of profits for current industry competitors. Barriers to entry can be created or exploited to farm a firms competitive advantage. Barriers to exit work similarly to barriers to entry, Exit barriers limit the ability of a firm to leave the market and can exacerbate rivalry unable to leave the industry, a firm must make do.Substitute productsPorters Five Forces model refers to substitute products as those products that are available in other industries that conform to an identical or similar need for the end user. As more than substitutes be commence available and collapseable, the adopt becomes more elastic since customers have more alternatives. Substitute products may limit the ability of firms within an industry to raise prices and improve margins.RivalryFirms strive to secure a competitive advantage over their rivals. The enduringness of rivalry varies within each industry and these differences can be important in the development of strategy. For example, the effectiveness of rivalry is increased by the following industry characteristicsNumerous competitors that are particularly strong or aggressive that are competing for the same customers and resourcesDeclining sales r levelues and volumes resulting in slow market growth, creating the need to actively stir for market shareHigh fixed costs result in an economy of scale effectHigh storage costs or highly perishable productsPlant capacity is being added, over and above what is needed to meet ingest Low switching costs for buyersLow levels of product specialismStrategic stakes are high when a firm is losing market position or has potential for great gainsHigh exit barriers tail a significant cost on abandoning the product.Discuss and see breakdown Criteria to be used for any of two products of the above company in different markets (Pass) commercialise Segmentation -mart naval division divides market into smaller units that can be reached more efficiently and effectively. market place segmentation is divided into four groups.Geographic SegmentationGeographic segmentation is dividing the market into different geographical groups e.g. countries, regions, cities, towns etc creation region or country (Europe, Middle East, India, china, Pakistan)Demographic SegmentationDemographic segmentation is dividing the market into groups ground on inconstants such as age, gender, family size, family life cycle, income occupation, education, religion and nationality.Age -Consumer need s and wants change with age. Companies offer different products for different age groups e.g. Johnsons baby lotion for kids, play stations for teen ages etcGender -Gender segmentation is dividing the market into different groups based on gender e.g. clothes for males and females etcIncome -Income segmentation is dividing the market into different income groups. merchandiseers produce products and go for different income segmented groups such as automobile industry, boats, clothings etcPsychographic SegmentationPsychographic segmentation is dividing a market into different groups based on social rank life vogue or personality characteristic.Behavioral SegmentationBehavioral segmentation is dividing a market into groups based on consumer knowledge, attitude, uses (potential users/non users) or their response to a product. makeIs dividing the market into groups according to occasion when buyers deposit the idea to buy, actually make their purchase or use the purchased item e.g. o rangish juice is most often consumed at break fast but orange juice manufacturers have promoted bedeviling orange juice as a cool and refreshing drink at other clippings of the day.DOMINOS PIZZAThe bottom of the pizza pie pie, called the crust, may vary widely according to style thin as in a typical hand-tossed pizza , or thick as in a typical pan pizza or deep pan pizza It is traditionally plain, but may too be seasoned with garlic, or herbs, or stuffed with cheese.In Dominos, pizza can be baked in an oven above the heat source, an electric deck oven, a conveyor knock oven or, in the case of more expensive restaurants, a wood- or coal-fired oven. On deck ovens, the pizza can be slid into the oven on a long paddle, called a peel, and baked directly on the hot oven or baked on a screen (a round metal grate, typically aluminum). Another option is grill pizza in which the crust is baked directly on a barbecue grill.Each instalment used in the pizzas has a different value and a different need and all these ingredients are value added features. This differentiates dominoes from other local pizza parlors in Pakistan.Demographic SegmentationAge Attracts children (6-15), teenagers and raw adults (16-22), and general adults.Family aspect is the basis of dominos. It got strong aspects about families visiting it.Income Income Level This is also an important variable on which segmentation can be carried out. People belonging to the lower income groups can not afford to buy dominos pizza will target that segment whose income puts them in the upper middle and high income groups.Social Class dominos caters to the upper- upper middle to middle upper social class.Occasions natal day Parties, Get together.SERVICEFree delivery and take a direction counters have eased that service that dominos offers. This changes the outlook and satisfies customers demands on time.Overall if we see, the differentiation is all on grapheme and hygiene and this provides the best value f or the customers money. A benefit of the hygienic factor and deliciousness is the graphic symbol that dominos has offered through out.Psychographic Segmentation flavour StyleSocial Class Buyers are divided into different groups based on social class and life style. many consumers live a simple life style and belong to lower and middle class they dont dangle on get pizza. So dominos should target that segment living a high class life and can afford to buy pizza.Behavioral SegmentationOccasion The other segment can be of regular occasions, which includes parties and get together.Foreigners This can be an important segment for dominos because those who come from afield are very brand conscious.DOMINOS SANDWICHESDominos Sandwiches are a widely popular sign of lunch food, typically taken to work or school, or picnics to be eaten as part of a packed lunch. They generally contain a crew of salad vegetables meat, cheese, and a variety of sauces or savoury spreads. The chou can be use d as it is, or it can be coated with any condiments to prove flavor and texture. They are widely sold in dominos outlets.Geographic SegmentationRegions Commonly raft prefer to eat sandwich. So dominos can segment the market on the basis of people taste.Cities Consumption of sandwiches is more in the large cities as compared to the small cities or town due to non-homogeneous factors such as income and education level. dominos should focus more on making its sandwiches available in the cities where people are willing and able to buy.Demographic SegmentationAge dominos can good target various age groups. The most important of these groups are children and young peoples. For children it can introduce association sandwiches with additional nutritional contents such as cheese and minerals. For older people it already has salad sandwiches . A smaller segment can be of the people who are aging. These people can be persuade that the sandwiches will help their diet remain healthy (espec ially women).Gender It will be very just to target working women and men. If they are convinced that the sandwiches will be good for their health during working moment specially in tight working schedule.Income and occupation People will buy sandwiches when they have lavish monetary resources. Dominos should target people in the higher income groups. People with blue collar jobs can be targeted by telling them that the sandwiches will help them in their daily routine. Life cycle horizontal surface can also be important because families with younger kids will want to buy sandwiches.Psychographic segmentationSocial class and life style People belonging to the higher social classes tend to spend more on luxuries as compared to people in the lower classes. Such people can be good targeted as they are very health conscious. dominos can urge these people (along with diet conscious) to buy their line of diet sandwiches.Discuss any two factors which influence the woof of targeting str ategy (Pass)Target Market SelectionTarget marketing tailors a marketing mix for one or more segments determine by market segmentation. Target marketing contrasts with mass marketing, which offers a single product to the entire market. deuce important factors to consider when selecting a target market segment are the attractiveness of the segment and the fit between the segment and the firms objectives, resources, and capabilities.Attractiveness of a Market SegmentThe following are some examples of aspects that should be considered when evaluating the attractiveness of a market segmentSize of the segment (number of customers and/or number of units)Growth rate of the segmentCompetition in the segmentBrand loyalty of existing customers in the segmentgetatable market share given promotional budget and competitors expendituresRequired market share to break evenSales potential for the firm in the segmentExpected profit margins in the segmentMarket research and analysis is instrumental in obtaining this schooling. For example, buyer intentions, sales force estimates, test marketing, and statistical demand analysis are effectual for determining sales potential. The impact of applicable micro-environmental and macro-environmental variables on the market segment should be considered.Suitability of Market Segments to the FirmMarket segments also should be evaluated according to how they fit the firms objectives, resources, and capabilities. Some aspects of fit includeWhether the firm can offer superior value to the customers in the segmentThe impact of serving the segment on the firms viewAccess to distribution ancestry required to serve the segmentThe firms resources vs. capital investment required to serve the segmentThe better the firms fit to a market segment and the more attractive the market segment, the greater the profit potential to the firm.Target Market StrategiesThere are several different target market strategies that may be followed. Targeting strateg ies usually can be categorised as one of the followingSingle-segment strategy -Is also known as a concentrated strategy. one(a) market segment (not the entire market) is served with one marketing mix. A single-segment approach often is the strategy of choice for smaller companies with limited resources.Selective specialization -This is a multiple-segment strategy which is also known as a differentiated strategy. Different marketing mixes are offered to different segments. The product itself may or may not be different in many cases only the promotional message or distribution channels vary.Product specialization -The firm specializes in a particular product and tailors it to different market segments.Market specialization -The firm specializes in serving a particular market segment and offers that segment an legions of different products.Full market coverage -The firm attempts to serve the entire market. This coverage can be achieved by style of either a mass market strategy in which a single undifferentiated marketing mix is offered to the entire market, or by a differentiated strategy in which a separate marketing mix is offered to each segment.Discuss how buyer behavior affects marketing activities in different situations in light of the assigned companies (Pass)Buyer BehaviorIn addition to understanding the needs of your customers, you also need to understand what motivates them to purchase, and how you can influence the buying process to ensure that your products or services are on the shopping list.Understanding your customers will help you to develop and distribute your product, as well as getting the right price point and developing successful promotional activities. The psychology of the buying process has been widely studied, and no matter what size your business, knowledge of this process can help you become more successful.Both businesses and consumers exhibit patterns of buying behavior. The business model is less open to debate as your busine ss customers will almost certainly have some formalized process of buying in place. Your task is to understand the process and match your marketing activities to the different stages of the process. This means that the customer will commence the right kind of contact at the right time.Marketing in DominosMarketing is based on the principle of customer satisfaction. This is the foundation for the environmental marketing approach of dominos. Environmental product claims in advertising, promotional material and on packaging are in accordance with legal requirements, based on solid scientific evidence and used in a serious and reasonable manner. Their aim is to besmirch wastage in communication, publicity and promotional material, in particular through more precise targeting of marketing activities. Consumer promotions and merchandising material such as consumer offers, in store promotions, display material, leaflets, printed matter, etc. take environmental aspects into composition. This means due consideration of environmental impact in selecting both materials and printing modes. In distribution, energy efficient and pollution controlled methods are encouraged wherever possible.The attractiveness of ads may attract consumersStrong brand image also help in attracting customers that influence their buying behavior.Quality of product its price packaging also influence buyers behaviorThe distribution channels, the placement of products also influence the behavior.3.1 Describe how products are developed to set out competitive advantages .Now a days technology is improving so as baking and heat up ovens will be of new and efficient technology and will provide efficient service. Due to new technology there are new ways of marketing like internet telemarketing and the organization can advertise their products with much more faster pace. Computer based customer data that is MIS (managing information system) helps in collecting customer data, daily transactions, fu ture forecasting and decision making. New vehicles will make their service more efficient.Dominoz pizza is the market leader in providing different products of pizzas as there are many competitors in this sector. There good image makes the organization more strong. Dominoz pizza is providing good taste, quality products with qualified module, good atmosphere and hygienic environment. They are specialized in pizzas. Motivation level of staff is very high which make the organization more prosperous. They are ISO (International Standard Organization) certified. They have enough resources for run different activities of the organization. They are providing forego home delivery service. Another big Strength and even a Competitive Advantage is the fact that they have a full service restaurant as well as delivery services. Most of Dominoz pizzas competitors do not have restaurants. Because of the restaurant, Dominoz pizza can market too many different segments that other pizza chains ca nnot.However, the fact that Dominoz pizza does have a restaurant to run is also a weakness. Dominoz pizza has higher overhead costs, due to the restaurant that other competitors dont have to deal with. Another result of higher overhead costs is higher prices Dominoz pizza must charge. Obviously, Dominoz pizza is not the low cost producer. They rely on their quality pizza and good service to account for their higher prices. They are providing less range of products comparatively with high prices. They are more focused on Western taste instead of Eastern.New markets can be explored and new opportunities they can gain. Dominoz pizza can come up with the new products considering the Eastern taste of the people as like McDonalds . Diversification of new products can increase their market share. They can reduce their prices because of more resources.3.2 Explain how distribution is arranged to provide customer convenienceDistributionIt refers to the best place to offer program. That is the place where it is located and through what channels are we distributing programs and the competitive advantage lies in distribution. The Dominoz pizza islamabad is situated in blue area.. second the catchment area is of a specified minimum size and within a given drive time to the site.Distribution The type of distribution channel used by Dominoz pizza is the direct channel. The direct channel is successful when there is an extremely large market that is geographically dispersed. The direct channel is also utile when there are a large number of buyers, but a small amount purchased by each.Dominoz pizza uses three different methods of selling its products directly to the market.The first method of distribution used by Dominoz pizza is Home. Office delivery. Customers can call Dominoz pizza ahead of time, place an order, and the order is delivered to the customers home.Another method of distribution is for customers to dine-in. Customers can go to the nearest Dominoz pizza, place an order and either leave with the order or eat at the restaurant. One of Dominoz pizzas largest competitive advantages is its restaurant style facility. Dominoz pizza offers a clean place to sit down and enjoy the variety of pizzas, salads, and sandwiches in a fun, family atmosphere.The third method of distribution is to order Online. Selective County Customers can now go on the Internet and place an order for Pizza. This method is useful because it allows customers to view the entire menu, download any special coupons, and order without having to disclose any credit handbill numbers.3.3 Explain how prices are set to reflect an organizations objective and market conditions.Pricing StrategyThe level of competition a business faces determines its pricing strategy. Sometimes a business has the scope to set its price and sometimes a business cannot. When a business has the scope to set its price there is a number of pricing strategies or policies it might choose. As there are no such co mpetitors of Dominoz pizza which could compete with the quality of pizza produced at Dominoz pizza, therefore, the pricing strategy adopted by Dominoz pizza is market skimming. Dominoz pizza has adopted this pricing strategy as they want to hold maximum share of the market by maximum profit. This is a golden era for Dominoz pizza, as there are no competitors and hence, Dominoz pizza is free to charge any price they want. They are charging higher prices due to the uniqueness of the product. They satisfy the target market as the food quality is worth the price paid. The pricing strategy is not just to get the worth of quality but also to gain maximum profits before any competitor enters because then Dominoz pizza will have to change its pricing strategy. Although the prices would be lowered with the new entrants in the market but not to a greater extent as the quality food products are not home-produced. They are imported from different countries keeping in view the bestQuality.3.4 Il lustrate how promotional activity is integrated to achieve marketing objectivesPromotional ActivityThis forced competitors to look for new methods of increase their customer bases. Many pizza chains decided to diversify and offer new non-pizza items such as Buffalo wings, and Italian cheese bread. The current trend in pizza chains today is the same. They all try to come up with some newer, bigger, better, pizza for a low price. Offering special promotions and new pizza variations are popular today as well. For example, chicken is now a common transcend found on pizzas.In the past, Dominoz pizza has always had the first mover advantage. Their marketing strategy in the past has always been to be first. One of their main strategies that they still follow today is the diversification of the products they offer. Dominoz pizza is always adding something new to their menu, trying to reach new markets. For example, in 1992 the famous buffet was launched in Dominoz pizza restaurants worldwi de. They were trying to offer many different food items for customers who didnt necessarily want pizza.Another strategy they used in the past and are still using is the diversification of their pizzas. Dominoz pizza is always trying to come up with some innovative way to make a pizza into something slightly different different enough that customers will think its a whole new product. For example, lets look at some of the pizzas Dominoz pizza has marketed in the past. In 1989, Dominoz pizza introduced their Pan Pizza, which had a guarantee of being ready to eat in 5 minutes when dining at Dominoz pizza restaurants. In 1994, they introduced the Bigfoot, which was two square feet of pizza rotate into 21 slices. In 1995, they introduced Stuffed Crust Pizza, where the crust would be filled with cheese. In 1997, they marketed The Edge, which had cheese and toppings all the way to the edge of the pizza. Currently, they are marketing The Big New Yorker, trying to bring the famous New York style pizza to the whole country.3.5 Analyze the additional elements of the extended marketing mixPeopleThe employees in Dominoz pizza have a standard uniform and Dominoz pizza specially focuses on friendly and prompt service to its customers from their employees. The employees are part time workers and full time workers (not a policy). The aprons of the employees distinguish them as Dominoz pizza workers. bear onThe food manufacturing process at Dominoz pizza is transparent and hidden (the whole process is not visible to the customers).Physical EvidenceDominoz pizza focuses on clean and hygienic interiors of its outlets and at the same time the interiors are attractive and the Pizza maintains a proper etiquette at its joints.The design, furnishing, lighting, layout and decoration of the Pizza chain as well as the appearance and attitudes of its employees will influence customer perceptions of the service quality and experiences. Now another component part of the service experienc e can be the Eviction Model which illustrates the various invisible and visible factors which influence the customers experience.4.1 Recommend marketing mixes for two different segments in consumer marketsSegmentationMain segments which Dominoz pizza has captured are the combination of higher incomes and dual career families , due to higher income consumer have more disposable income , allowing them to eat out more often .Dominoz pizza holds the most market share in the Pizza industry, the perceived quality and service of the company will help to ensure a better the average chance at a successful introduction of a new product. The introduction of a product that keeps with today trends is also important to reduce the risk of failure.Dominoz pizza maximum market segment is younger generations. These generation ranges from 12 to 30, the overall spending of these generations is mostly on non essential items, the higher amount of spending has been done on eating out.