Marketing Principles

Halo Food is a renowned company that is known for offering cereal bars that fulfill the need of customers to consume high-quality food. The firm also offers spanning energy bars, specialized diet bars, low-carb bars, chocolate-enrobed snack bars, and low-glycaemic index products. In this report, the benefits and costs of marketing orientation will be studied. Different macro and micro factors that impact the marketing decisions of Halo Foods will be described.

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Task 1

1.1 Various Elements of the Marketing Process

With the help of the marketing process, Halo Foods tries to identify the emerging needs of customers and therefore develops bars and other products accordingly. This further helps the company retain loyal customers and attract new ones. The marketing manager of the company also focuses on various elements of marketing procedures, which are as follows:

Recognizing the Marketing Opportunities

It is an important process that helps the organization identify marketing possibilities that meet the requirements of customers in accordance with the changing tastes, preferences, market trends, and needs of consumers (Marketing Elements, 2015). It can be explained that with the increasing health consciousness among millennials, Halo Foods launched special diet bars.

Selecting the Potential Market

The marketing procedure of the company is concerned with the selection of prospective markets with superior marketing possibilities to offer a wide range of offerings. With this aspect, the firm decides to whom it wants to sell its products. For instance, chocolate snack bars are for kids, low-glycemic bars are for the elderly, etc.

Strategy

It refers to a well-defined plan of action that helps the organization achieve long-term goals (Jobber and Ellis-Chadwick, 2012). It plays an important role in guiding the marketing efforts of Halo Foods that further ensure the success of the business in the future. It is significant for the marketing manager to consider the long-term vision, mission, core competencies, etc. while devising the strategy.

Planning

It means proper sequential steps that assist Halo Foods in attaining the framed objectives of business by applying a planned strategy. Further, it involves the allocation of resources, setting time frames for goals, preparing the budget, etc.

Tactics

They are short-term plans that help Halo Foods achieve short-term goals. The main aim of tactics is to enhance the sales of establishments by stimulating customers to buy the product (Sheth and Sisodia, 2015). It involves an effective use of promotions, offers, discounts, loyalty programs, etc.

1.2 Evaluating the Benefits and Cost of Marketing Orientation in Halo Foods

Marketing orientation is an important approach that assists the company in designing products as per the desires, requirements, and preferences of consumers. It further ensures the proper functionality of the product along with the skillfulness in production (Sheu, 2014). With this aspect, the organization is able to build a distinct image of its brand in the market and create maximum customer loyalty. The marketing orientation of Halo Foods involves various costs and benefits, which are as follows:

Benefits

• Superior level of branding: With the help of a marketing orientation program, an organization is able to make constant modifications in its offerings that further help in building curiosity among customers with regard to products of Halo Foods. Further, the company is able to build a unique image in the market (Marketing Orientation, 2015).
• Marketing benefits: Being a marketing-orientated entity, Halo Foods is able to interpret the market requirements and the way in which they can market the same. Further, marketing managers can communicate with the customers about the way in which their product matches with the customer's needs (Svatosová, 2013). Therefore, firms can develop emotionally affecting requests in their television commercials and ads to encourage more business.

Costs

• Research Cost: In order to identify the emerging needs of customers, a large number of funds are invested by the company in conducting market research and surveys. Halo Foods hires sales executives who help in identifying new market trends, needs of users, etc. Further, to react accurately to the growing demand, the company invests in market intelligence (Jobber and Ellis-Chadwick, 2012).
• Continuous Investment: Because of marketing orientation, Halo Foods is forced to make constant upgrades in the mode of production, technology, and processes. Further, expenses are made on providing training to employees to use new techniques, marketing equipment, etc.

Task 2

2.1 Various Macro and Micro Factors That Impact the Marketing Decisions of Halo Foods

Different intrinsic and extrinsic constituents present in the environment have a direct impact on the performance of the organization (Gronseth, Gulbrandsen, and Haugland, 2015). They are as follows:

Micro Factors

• Customers: They are the heart of the organization's success as they consume the products of the company and generate profits in return. The changing needs of customers stimulate the firm to make changes in its offerings. To assure satisfaction among consumers, it is important for the firm to offer ethical products, value for the money paid, etc.
• Government: There are a large number of rules and regulations framed by the UK government that are mandatory to be followed by the company (Radebaugh, 2014). Further, the company is required to pay tax and other duties on time to avoid legal actions against the business.

Macro Factors

• Economic: The change in economic variables like interest rate, household disposable income, GDP, GNP, etc. have a direct impact on the performance of a company. Therefore, they should be considered when making any business decisions. For example, an increase in the disposable income of individuals is likely to enhance the sales and demand of products from Halo Foods. Therefore, it should plan its production accordingly (Kuo, Ahn, and Aydin, 2013).
• Technological: To sustain tough competition in the present dynamic market, it is important for Halo Foods to upgrade its technology and processes. If the company fails to adopt new technology, it can cause dissatisfaction among customers, reduce sales, and therefore, may affect the brand image.

2.2 Impact of Buyer Behavior on the Marketing Activities of Halo Foods

Buyer behavior refers to the well-defined process that is used by consumers during making a purchase decision. It refers to those components that stimulate the buyers to purchase the offerings of Halo Foods over other competitors. Considering the buyer behavior, innovative marketing strategies can be developed so that maximum customers can be reached and satisfied. Further, the marketing manager can also make viable changes in the present strategy. Therefore, buyer behavior will help managers reach customers within demographic and geographic segments (Smutkupt, Krairit, and Esichaikul, 2010). Therefore, for reaching the consumers of the demographic segment, age of the individual, income, etc. can be taken as criteria. Therefore, for customers within the age group 18-30, companies can use digital marketing like social media ads, engine optimization, mobile applications, etc.

However, a company can charge a slightly high amount for offering technically advanced products offered to this segment. On the other hand, for elderly customers who are more health- and price-conscious, Halo Foods can use an effective marketing campaign. Therefore, low-cost marketing techniques like ads in newspapers, television, posters, etc. can be used. In addition to this, to stimulate price-concerned customers, a company can use discounts, sales, promotional offers, etc. Further, marketing at a local level can be used to target customers in particular locations (Gronseth, Gulbrandsen, and Haugland, 2015). Therefore, hoardings, ads on local television channels, newspapers, etc can be used. Local tastes and flavors can be added to give a feel of a particular region to customers. This will help in targeting customers emotionally.

2.3 Positioning Strategy Used by Halo Foods

Positioning strategy will help Halo Foods develop a distinctive image of a brand in the market as compared to its major competitors. Therefore, the marketing manager can consider the following marketing strategy:

Price Positioning

In order to encourage the sales of its wide range of products, a company can use price as an effective tool. Therefore, premium-quality products can be offered by the company at affordable prices to boost sales (Varadarajan, R., 2010). For price-concerned buyers, a company can use coupons, special offers, discounts, etc. However, for status-conscious buyers who relate price with quality and status symbols, a company can charge high prices. Therefore, diet and energy bars can be offered at a little higher price.

Benefit Positioning

To enhance sales, Halo Foods can highlight the unique attributes offered only by Halo Foods. For instance, a company can use organic food ingredients in its bars. In addition to this, the new range of bars having fruit and vegetable extracts, etc can be introduced.

Task 3

3.1 Developing Products to Sustain Competitive Advantages

Competitive benefits refer to those perquisites available to Halo Foods that assist it in performing better in a market in contrast to its competitors. With the help of these privileges, a company can develop a distinct image of a brand in the market. The major competitive advantage available to the brand is in terms of ethical foods and feel that are offered by the brand. Further, to sustain the competitive benefits, it is important for organization to modify its products as per the emerging needs of potential customers. For example, sugar-free bars can be introduced for diabetic patients (Radebaugh, 2014). For elderly consumers, gluten products should not be offered, etc. Likewise, for kids, new flavours like strawberry, blueberry, vanilla, etc. can be introduced. In this respect, organizations can use standardized techniques and pieces of equipment to prepare the special bars. The techniques and processes used for production should be upgraded to build competitive benefits. With the help of competitive advantage, a company can develop brand loyalty among its customers and plan to attract new ones. With the assistance of research and development, the firm can identify new and prospective core competencies that can be availed by the company. In this respect, marketing managers can focus on the rising needs of consumers, such as online shopping, home delivery, custom-made bars, etc. Therefore, the company can use e-commerce as an effective platform for offering its products (Gronseth, Gulbrandsen, and Haugland, 2015).

3.2 Distribution System Used by Halo Foods

Distribution system refers to the organized procedures, systems, and operations that are developed to help a company manage the movement of products and services from the originating point to the final consumer. The distribution system plays an important role as it helps in reaching the target customers effectively. Therefore, a company can use both online and offline distribution systems for offering its products. Halo Foods can develop an online store for selling its wide range of bars and candies (Armstrong, Adam, Denize, and Kotler, 2014). Organizations can also develop their own dedicated stores in convenient locations to target maximum customers. For instance, to reach customers of age 16-26, companies can develop stores near schools, colleges, etc. Further, for targeting elderly customers who find problems in visiting stores, the company can use online distribution and home delivery. In addition to this, to encourage women to consume bars of Halo foods, stores can be developed in residential areas, shopping centers, etc. To attract, millennial companies can use mobile applications to educate them about the ethical products offered by the brand.

3.3 Determining the Prices for New Products of the Company

The success of products depends upon the large extent of the prices charged by the company for its offerings. For instance, too high prices can result in low sales by price-conscious customers, while low prices can discourage high-end customers from consuming the offerings of the brand (Svatosová, 2013). Therefore, it is significant for the brand to set the appropriate price for the particular product. In this respect, the organization can select the following pricing strategy for its various products and services.

Hence, a company can use premium and price skimming for the new range of dietary, low-GI, and carb products. With this aspect, Halo Foods will be able to enhance its revenue. For other products, a company can continue with a competitive pricing policy.

3.4 Promotional Policy for a company

The promotional policy will help a company in transmitting the value of a brand to the target customers. Since its inception, millennials have bought products only after knowing the company information, user reviews, etc. Therefore, a company can use the promotion to communicate the ethical products offered by the brand. With the help of a promotional policy, a company can encourage maximum customers to buy the products. Therefore, organizations can use integrated promotional policies that enable the use of modern and traditional marketing tools (Marketing and Promotion, 2012). In this respect, the company can use online promotion, social media, engine optimization, mobile applications, and review sites to attract millennials. Further, for aged customers, traditional and cost-effective marketing techniques can be used, such as ads in television, magazines, posters, radio commercials, etc. To attract the attention of women and young girls, celebrity endorsement can be used. Also, they can be encouraged through various discounts, sales, etc. Thereafter, to encourage purchases from kids, companies can use cartoon characters in advertisements, provide free toys, etc (Wang and Li, 2012).

3.5 Additional Elements of the Extended Marketing Mix of Halo Foods

Following are the additional elements of the extended marketing mix that can be focused on by the marketing manager while preparing the marketing strategy.

Physical Evidence

It refers to the elements that are incorporated in a service to assure its tangibility. It further helps in highlighting the quality of services offered by Halo Foods. In this respect, the marketing manager of the company ensures the physical appearance of the brand stores it attracts so as to stimulate consumers to enter the outlet and make purchases (Marketing Elements, 2015). Therefore, the counter must be well organized, products should be displayed properly, staff should be neatly and uniformly dressed, etc.

Process

It means the organized way that assists Halo Foods in offering a wide range of products and services to its consumers. Therefore, a company can ensure its e-commerce stores are IT-supported. Further, sales personnel appointed for physical stores should be customer-focused.

People

It refers to the quality of human resources that are employed by the organization to attract and retain customers. The employees further represent the company in the market. Hence, Halo Foods ensures it has well-trained and skilled manpower who are capable of meeting the needs of customers in the best possible manner (Svatosová, 2013).

Conclusion

Summing up the entire report, it can be stated that marketing is an effective approach that helps Halo Foods outperform its competitors. The marketing orientation ensures the cost involved in it is less than the benefits that are likely to be attained in the future. It has been identified that various macro and micro factors like customers, employees, government, economic, and socio-cultural factors can impact the performance of a company. Therefore, they must be considered while functioning.

References

• Armstrong, G., Adam, S., Denize, S., and Kotler, P., 2014. Principles of marketing. Pearson Australia.
• Gronseth, B.O., Gulbrandsen, B., and Haugland, S.A., 2015. Governance Forms Impact on Distribution Channel Performance. In Global Perspectives in Marketing for the 21st Century. Springer International Publishing.
• Jackson, M.A., 2014. Product, promotion, or audience? Exploring concerns associated with the promotion of unhealthy food and beverages to children and adolescents. In AM2014 Conference Abstracts: Academy of Marketing Conference 2014. pp. 49-49. Academy of Marketing.
• Jobber, D. and Ellis-Chadwick, F., 2012. Principles and practice of marketing (No. 7th). McGraw-Hill Higher Education.
• Kuo, C.W., Ahn, H.S. and Aydin, G., 2013. Pricing policy in a supply chain: Negotiation or posted pricing. Production and Operations Management.

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