A producer produces a product by investing on it some value and the producer intends to regain that value with the profit earned through the sale of that particular product. A product reaches to the customers from the production line traversing a set of steps. Notably, the most important step of these is the marketing process. Marketing of a product is the aspect of a business that brings profit to the organisation by identifying the customers, presenting the product in the right place at the right time and by closing the sale. The whole process of marketing involves some pre-set principles and techniques. An organisation must be wise when applying these techniques, as it needs to find the most appropriate technique for itself. The principles related to the marketing process in collectively the different shareholders of the marketing process and a system to manage those in a way to increase the sale and profit of the organisation. This assignment concerns in explaining the various aspects of marketing principles and techniques to the key staffs of Dounout Corner, which is a small family run business that produces great quality of doughnut but is not aware of marketing. 


Task 1


AC 1.1 Describing the diverse activities carried out in marketing department

According to Hsu et al. (2012) marketing of a product is a vast process which has many aspects that collectively make the marketing process an effecting one for an organisation.  The marketing department at the first place has to research the market.  They need to find out the choice of the customers and what the customers do not want in the product.  In the case of this particular product, doughnut, the entity has to find out the demand of the market about the doughnut and what other entities are failing to provide the customers.  Market segmentation is important as it enables the entity to identify the target market for a particular product, opines Cronin et al. (2011).  Dounout Corner has to select that section of the market which prefers to buy doughnut most.  The management of Dounout Corner must focus on a proper promotional planning for their products as it is a part of the marketing process.  The customers have to be informed about the positive aspect of this particular doughnut and must present the reason why the consumers should have this and not the others.  Chabowski et al. (2011) puts that establishing an effective relationship with the customers is a significant marketing activity.  Through establishing an effective relation with their customers an organisation will easily know about the changes taking place in the taste of the customers and will get feedback regarding their particular product. 

In the present business scenario, an effective way of marketing is to adopt an online way of product promotion.  An entity must start to promote their product in the online medium to reach to grater customers directly.  Dounout Corner should not only promote their product in the traditional way but also use the power of the internet in the promotional activity.  An organisation must evaluate the effectiveness of the different marketing tools in terms of their efficiency and the cost related, observes Vargo et al. (2011).  For Dounout Corner, online marketing will prove to be an effective and cheap way of promoting their doughnut and attracting the attention of the greater number of consumers.

AC 1.2 Explaining market segmentation as a tool to identify customers

Market segmentation is effective to select the right market for a product.  Market segmentation is done on the basis of the socio-economic status of the market, demographic diversity of the market, the behavioural pattern of the customers, psychographic condition of the market and the geographical specification of the market, asserts Abratt and Kleyn (2012). 


In socio-economic segmentation, the social and economic tradition and capabilities of the market are taken into consideration.  A buyer may be influenced by the social patterns he or she follows.  The economic capacity is the primary determiner of the purchasing decision of a purchaser.


The demographic diversity of a market sometime has a concrete impact on a market.  An entity must be careful while designing and placing their product in a market about the demographic aspect of a market (Prothero, 2011).  Religion, age, sex are few aspect of the demography of a particular market.


Certain buyer has certain behavioural pattern regarding taking purchasing decisions.  These are changing variables of a market. 


A market can be segmented on the basis of the specific personality traits of the customers, their interests, the value they possess, the attitude of the customers and the type of lifestyle the consumers lead (Michaelidou, 2011).  This type of segmentation helps the entity to configure the product according to the minor details of the market.


A market may be segmented depending on the geographical condition of the customers.  Products can be differently configured for customers according to the place of their residency.  A market can be segmented also as a rural or urban market.

Table 1: Basis of market segmentation


For the business of Dounout Corner, the target market is the consumers with low purchasing power and primarily the busy persons who prefer to have their breakfast on the go.  Hence, the market should be segmented on the basis of the socio-economic condition of the customers and their lifestyle.

AC 1.3 Explaining the marketing mix

The concept of marketing is a set of tools that help the organisation to find a proper market for a product through assessment of different aspects of the product. 


The product is the thing which is to be sold in the market; it may be any goods or a service.  The product should be designed in the proper way to fit the demands of the market.  There are many aspects related to the product such as the brand, packaging of the product and managing the product life cycle.


The price of the main aspect when the product is presented on the market for sale.  The price of the product can be fixed using a number of pricing strategies.  The price of the product must not exceed the purchasing power of the targeted customers and on the other hand, must make sufficient profit for the organisation.


The customers must be aware of the specifications of the product.  Promotional activity is the only way to inform the customers about the various aspects of the product that will drag customers’ attention towards the product.


The place where the product is sold impacts the success ratio of the product greatly.  A high-cost product is not wise to sell in a low purchasing power market and similarly, a low-cost product creates a negative impression in the niche market, opines Mitchell et al. (2011).

Table 2: Porter’s five forces


Dounout Corner has to configure their product in a way that the product fits in the market in the best way.  The organisation has to produce the doughnut as per the demand of the market in terms of size and weight.  The price of the product must be fixed to focus the cost related and the purchasing power of the targeted customers.  The attracting aspects of the doughnut must be communicated to the customers through effective promotional activities.  Finally, the organisation has to select the market wisely and must respect the feelings of the market in the whole process of marketing.


Task 2


AC 2.1 Explaining the aims of market research and market analysis

Market research and market analysis are important for an organisation to identify the demand of the market and what the customers need in a particular product, observe Hanna and Rowley (2011).  The impact of macro and micro environmental aspect on a business may be detected by researching the market.  An organisation must design their product according to the needs of the customers.  The entity can understand what the qualities a customer want in a product, is only identified through market analysis.  A product must be improved timely to survive in a competitive market for a long time.  In this process, market research plays a great role. 

Market research gathers information and the production department can improve the product accordingly.  For achieving competitive advantage over the competitors, an organisation must monitor the present market and look for the scope of improvement in their product.  Market analysis can be very effective in this regard.  Market research and analysis turn to be utmost significant when the organisation intends to expand its business to a new market.  Market research in such time can provide an organisation with that vital information that will enable the organisation to run its business in that respective market successfully.

AC 2.2 Describing market research methods

An entity may find two types of information from the market using different research tools.  Primary information is directly collected from the consumers of a product or service.  An organisation can collect primary market information by interviewing their customers using a set of questionnaire devoted to finding useful inputs from the consumers (Mitchell et al. 2010).  The entity can also engage with the focus group in an interactive discussion to gather their feedback about the service the entity is offering.  Secondary market information can be very useful to understand the norms and present trend of the industry.  Collecting secondary information can be done by communicating similar entities in the market who deal in the same business.  Interviews, questionnaires and discussion with the focus group will provide the organisation with qualitative information about the market.  Qualitative information will help the organisation to assess its rank in the industry in comparison to other competitors. 


AC 2.3 Outlining market analysis tools and techniques

Market analysis tool: Micro

The last two variables of SWOT analysis are effective to research the market and use the finding toward enhanced productivity and profit of the organisation. 


Through market analysis, an organisation should find out the opportunity that is available in the market and should utilise that to increase the productivity and profit of the company.  The opportunities that are present in the market need to analyse the market extensively to be found out.


Identifying the threats in the market that have the potential to negatively impact the business also need to research and analyse the market thoroughly.  The threats in the market should be mitigated with the strength of the organisation and by utilising the available opportunity in favour of the organisation.

Table 3: Partial SWOT


Market analysis tool: Macro

Analysis of the macro environment is very essential to understand the market in a proper way.  PESTLE analysis will be useful to analyse the macro factors of the market.


Successful operation of an organisation is largely depended on the political aspects of the market.  Political will and the respective regulations and rules that have the potential to impact the operation of a business are regarded in this section.


A business needs a favourable economic condition to flourish best.  The rate of inflation, the rate of economic growth and the purchasing power of the customers are very significant for a through market analysis. 


The social traditions of a market should be read before starting a business in a place.  The reason of this survey is to understand whether the product will match the social traditions and customs of that particular market.


The technological advancement of a market has the potential to impact a business in a particular market in various ways including influencing the promotional activities of the entity.


The legal aspect of a market is responsible for the performance of a business in that market to a great extent.


The environment in this case does not only mean the climatic condition of a market, it also asserts all those factors that have the potential to impact the business, like the presence of a favourable labour market.

Table 4: PESTLE


Competitor analysis: Porter’s five forces analysis

Porter’s five forces analysis is an effective tool to analyse the competition present in the market.  Three elements of this analysis are devoted to this purpose.  A profitable industry attracts many new entrants that increase the competition level in the market.  Availability of substitutes in the market enhances the competition in the market in an indirect way.  Through competitor’s analysis, an organisation can gather information about the competitors in the market and hence plan to counter them and sustain the competitive advantage.


Task 3


AC 3.1 Describing the methods used to e-market products and services

E-marketing is the most effective way of marketing a product in the contemporary world.  There are various methods of e-market a product.  The website, at first, has to be designed is such a way it shows at first when the key words are searched on the web, opines Lipsman et al. (2012).  The organisation can adopt pay per click marketing where the entity has to pay the agency as per the number of time the advertisement on the web is viewed.  The organisation can promote the product on the web to reach to greater consumers.  A new method of e-marketing is viral marketing (Colliander and Dahlén, 2011).  In this method, the users are encouraged by the organisation to share the advertisement number of times.  Hence, the information reaches the maximum number of web users.  The organisation can promote its product by sending e-mails to the prospective customers.  All the above-mentioned activities collectively help the organisation to build a positive online reputation which enables the entity to create a positive image among the consumers about the product.  

AC 3.2 Explaining how companies manage their online image

An organisation can efficiently manage its online image by using the social media effectively.  In the words of Valos et al. (2010), the company can update its day to day development regarding the customer related issues in the social media and hence establish an effective relation with the customers which will, in turn, benefit the organisation. A positive image of the organisation among the consumers benefits the organisation in various ways.  Online marketing is more efficient from tradition marketing methods from various aspects.  In a recent incident, Dounout Corner has experienced it by receiving a bulk order from a distant consumer who comes by their product in the social media and was impressed by the qualities of the doughnut.  The company could have lost the order if the online marketing was not implemented.  Online marketing is a cost effective way of marketing which enables the organisation to reach to a larger number of consumers in lesser cost compared to traditional methods of marketing (De Mooij and Hofstede, 2010.).  An entity can promote its product worldwide just in a click when it adopts the e-marketing methods.  Social media marketing also enables the organisations to receive the feedbacks of the customers who are unable to send their feedbacks to the organisation by any other means.  A social media interaction with the organisation enables the entities to receive their feedback immediately which may help them to configure the products according to the demand of the customers, observe Chu and Kim (2011).  


Task 4


(Refer to PPT)

AC 4.1 Using market analysis tools to research the target market

The SWOT analysis of the company Dounout Corner shows that the company being a small entity may implement cost-effective production process.  The entity also faces huge competition from the already established brands.  The market has ample opportunity for this entity as the quality of the doughnuts is very high.  The primary weakness of this company is the lack of promotional activity.

Applying PESTLE analysis on the market reveals many aspects of the market that may be helpful for the growth of Dounout Corner.  The consumers of the market are mainly busy and middle-class people who have the purchasing power to buy doughnuts.  The cultural and traditional aspects of the market also are helpful for the growth of this business.  The main recurrent political issues of UK, Brexit, will not affect this entity as it is depended on the local suppliers and customers.  The technological advancement of the market will effectively help the company to adopt online marketing which is cost effective and closer to the customers, opines Truong et al. (2010)

Dounout Corner being a small organisation does not enjoy large bargaining power over the suppliers.  The existing big brands in this industry like Dunkin' Donuts pose a large threat to the company as strong competitors. 


AC 4.2 Interpreting the findings of market analysis and market research

The present market analysis and market research have been conducted to assess the opportunity of Dounout Corner in the confectionary business.  In doing so, the primary focus has been on the ways and means to enhance the promotional activities of the organisation and selecting the most appropriate form of product promotion for their product.  The data that have been collected from the market is extensively researched and interpreted to find the best way out for the company.  Assessing the power and threats from the competitors has been another objective of this research and analysis.  The analysis has revealed a certain pattern in the confectionary business.  The larger entities assert on the product quality and the number of products but they are ignorant about the service quality of the organisation.  Dounout Corner can use this gap in the market to expand its own business. 

AC 4.3 Presenting the finding to the marketing team

The research and analysis done on the market have found out much useful information which may be used for enhancing the condition of Dounout Corner in the confectionary industry.  The first this that this analysis has surfaced is the importance of marketing for a successful business.  In the research process, it has also been found that e-marketing will be a better promotional option for this organisation. 

- The organisation should effectively indulge in promotional activities.

- Dounout Corner has to focus on their service quality to effectively counter their competitors.

- E-marketing will be more effective as a promotional option for this company.

- The company should develop their products on the basis of the findings of the market research. 


The confectionary industry deserves quality products as well as a good marketing strategy for survival.  Product promotion is a vital part of a successful business.  The marketing mix is very effective in segmenting the market and selects a target market as well.  An organisation can effectively position its product in a market by using the findings of market research in its organisational activities.  Dounout Corner as a small entity in the confectionary industry has to face hard competition from its competitors; hence, the organisation must develop a concrete strategy to face the threat of competition.  The organisation should configure their product according to the findings of the market research and must utilise the opportunities in the market to strengthen their business.  The focus of Dounout Corner has to be creating awareness among the consumers about their product and thus try to expand their business. 


Reference List

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