Principles And Practices Of Marketing Ppm

1. Introduction: Principles And Practices Of Marketing- Ppm

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Principles, as well as practices of marketing or PPM, are important for product, place, price, as well as promotion synergy. The marketing mix is an important element of it and in the present study; the discussion will be going on based on the present company, Uber Eats. It is a company based on a food delivery system that provides food services from the best restaurants. In addition, this company gives the facility of contactless food delivery along with other groceries.  Moreover, this company enables the customers to choose the quality of the food on their own. This study will deal with the Targeting, Segmentation as well as Positioning of the present company. Moreover, it will elaborate on the Marketing Mix elements as well as the Business marketing strategies of the above-mentioned company. Other than this, the theories and models related to the present company will also be discussed along with the matrix of the company.

2. STP Model and marketing mix

2.1 Marketing mix elements 

The marketing mix is considered an important step in the use of marketing tools that a firm commonly uses so that it can increase its penetration in the wide targeted market groups. Here the marketing mix of the company Uber Eats will be described and the four chosen P’s are product, price, place and promotion. Primarily it focuses on seven important features that include product, price, place, promotion, people, process and physical evidence (Thomas and George, 2021). All these features help a particular company to choose and decide on a particular strategy that is suitable for marketing. It also helps in the proper allocation of resources and budget to different aspects that include the strategy of marketing and development of products. But here we will discuss only the first four marketing mix principles namely.

Figure 1: Marketing mix

First p (Promotion): The market value of any company depends on how it designs its strategy in promotional tactics. The latest promotional tactics through the use of “digital marketing” and reward products would directly impact the customer base in the UK. “Community influencers” would help the company to spread its on-ground promotional efforts (Al Badi, 2018). The use of ads in TV and magazine would add emotional appeal to the customer and further add the functional benefit of the products of the company.

Second p (Product): It is one of the most important components of the marketing mix principles that the company Uber Eats can use. The various distinctive features related to the product include Quality, Ease of use, and Broadness of the Portfolio and related benefits of the consumption of the products. The high quality of the product can be maintained only by adding value at all levels of the value chain and the company can use it wisely (Chaffey and Ellis- Chadwick, 2019). There is a need to maintain a proper environment where raw materials are processed so that the company could improve and maintain the consistent quality of the products. High-quality promise and proper delivery would provide a competitive advantage for setting up the company in the UK. The company should provide a facility related to the customer helpline number and product details page so that the customer can call 24/7 and solve their query. After that, the broader portfolio branches that the company can use to add more value to its products. The products manufactured and sold should provide the customers to meet their psychological demands in the market of the UK.

Figure 2: Uber Eats Business Model

Third p (Place): The proper placement of products directly affects the customers because of their accessibility. “Company-operated stores” can give the company higher control operations that include the design and the layout of stores. It would also give the company leverage in deciding the stocking of various products. Licensed stores are a must for the company if it wants to avert the risk related to any type of financial or physical investment (Chaffey and Ellis-Chadwick, 2019). It would also help the company to learn more about the local customers and cultures of the people of the UK.

Fourth p (Price): The Company can use a combination of techniques for pricing its products that meet the demands of the market of the UK. Premium pricing can be used as one of the options that would encourage the brand and further product perceptions among the larger consumer base in the UK. The model of premium pricing adds privilege and would add high value to the products of Uber Eats. It has been estimated that a larger base of customers favour the use of psychological pricing of the products and it would be advantageous for the company if they apply it to advance their market base in the UK. Geographical pricing can also be used by the company which would cover the company’s shipping and expenses of customs.

2.2 STP Model 

The marketing elements applied by the company can reflect the STP model. It is a great aspect of the business field that assists in business strategies. The STP model enables a company to enhance marketing communications and makes it more relevant, focused and associated with the customers. However, it also deals with the grouping of customers with similar requirements to fulfil their demands and aims at targeting their preferences more precisely. It mainly manages the communication labels of the company with the customers (Kalam, 2020). Moreover, this marketing approach will make the present company spread its business in the markets of the UK. In addition, this marketing strategy when applied in the Uber Eats Company will prove to be customer oriented as it will segregate the audience in the market. This model will prove to be very helpful in this company as it basically deals with the customers who are approaching the services provided by the company. However, it also decreases the risks involved in business management. It will also increase the marketing efficiency and contribute to the reduction of the acquisition cost of the customers of the present company and enable it to thrive successfully in the markets of the UK. 

Figure 3: STP Model

Segmentation: It is the first step in the STP model where the company can use its “market segmentation” to divide the customers into groups with common needs and characteristics. This would help the company to meet the target of a specific group’s demands in a more effective way (ubereats.com, 2022). This would add a competitive advantage over the other competitors that mostly follow the approach of “one size fits all”. Segmentation can be done based on “demography, geography, psychography and behavioural” (Adeola et al. 2019). This would help the company Uber Eats to properly understand the personal attributes related to gender, ethnicity, lifestyle, how loyal the customers are and the other benefits that they are looking for in the products of the company. 

Targeting: This is the next approach that the company should follow to target the group that was already identified by going through the first step. This approach is very specific as it would help the company to generate revenue from a particular customer group and its profitability. The company should see which customer groups are adding more profit to the company and what is the size and potentiality of that particular group in generating maximum profit (smallbusiness.chron.com, 2022). The company must be very careful while targeting a particular niche group that is too small to generate revenue. It is also very important for the company to see that they have the capability to properly address that particular target group that they have chosen. 

Positioning: The third step in the STP model that the company should approach to position their company based on the target base chosen during the earlier step. Then only they would be able to apply the different marketing mix techniques according to their effectiveness. The company should ask questions themselves on what is the reason for purchasing their product rather than from their competitors (businessmodelanalyst.com, 2022). Based on this they need to draw a positioning map so that they could understand which customer base is drawing their products or service. This will help the company to properly determine its position of offering (Mujahidin and Khoirianingrum, 2019). There is also a need to look at the needs of each consumer base and the best way to do this is by pinpointing the problem. The company should design a value proposition that would help them to understand how better they could meet the requirement compared to the competitors’ products. This would help them to design a marketing campaign that would add value to its proposition in such a way that would be appreciated by the audience. 

3. Marketing strategies

3.1 Business and marketing strategies 

Marketing strategies play a crucial role in the development of any organization or company. It is one of the important aspects of a business, without a proper business and marketing strategy a company cannot survive in the market (ubereats.com, 2022). In modern times a sound marketing strategy is essential as it enables an organization to have the upper hand against rival organizations. A good marketing strategy helps in understanding the demand and needs of the customers and the company can accordingly make its product.

The right marketing strategy is beneficial, for improving and enhancing product quality and achieving goodwill among its customer. Uber Eats is an online food service delivery app that is similar to GrubHub, Zomato, Doordash, and many more. The company is one of the fastest-growing companies around the globe and they have achieved this by improving and enhancing its business and marketing strategies. The Uber Eats company has implemented four different types of marketing strategies to enhance its sales and increase its customer base by improving the quality of products in the UK market. The marketing strategies that the Uber Eats company has adopted are as follows:

Market Penetration Strategy: The market penetration strategy is used when a company aims at selling the current products of the company to its customers. The marketing strategy aims at improving its engagement with the customer so that the company can increase its loyal customer base. The Uber Eats Company has implemented this marketing strategy to set up its business market in the United Kingdom. 

Market Development Strategy: The market development strategy is implemented by companies to increase their product sales by selling their products in new fields and new markets. Uber Eats has also implemented this marketing strategy in the UK market to increase its sales and revenue by developing product awareness and by improving the distribution channels of its products. This will help the company to understand the market of that particular area or region.

Product and Services Development Strategy: A product development strategy is implemented when new products of the company are to be distributed or sold in the market. The online food delivery company Uber Eats adopted this strategy to improve its services in the UK market. They have introduced new services in the market for their customers. Thorough research and observation of the particular market are required for this business strategy.

Diversification Strategy: A diversification marketing strategy (MS) means selling new products in different areas or markets and not in the existing market. It is one the riskiest strategy and it requires a lot of patience but it has a lot of benefits. Uber Eats Company has implemented this strategy in the UK market (Kotler et al. 2019). This strategy will help the company to establish itself and reach new heights in the particular market.

The Uber Eats Company has adopted and implemented these marketing strategies to set up and develop its business in the UK market. The implementation of these strategies will help the company to improve its customer base. The customers will be more satisfied and will become loyal to the company and this will help the company to expand its business. Engaging with customers will also help them to understand the market trends and needs of the customers so that it can innovates its product according to the preferences of the customers (Andrews and Shimp 2017). The implementation of these strategies will also help them to have an advantage over the other companies. These strategies will help the company to develop and grow in the market and will help the company to rise as one of the strong companies in the UK market. 

3.2 Theories and models related to business 

Maslow’s Hierarchy of Needs Theory

“Maslow’s Hierarchy of Needs Theory” is a theory of motivation and it is one of the most popular theories. It explains the psychology of humans and that they are strongly motivated to fulfil their needs. Abraham Maslow introduced the theory in 1943 and theory is based on the importance of needs, beginning with basic needs to higher needs. The theory is implemented in the marketing strategy to understand the needs of the customers. This theory will help companies to understand customer behaviour and their preferences. Uber Eats has implemented this theory to understand the psychology of its customers so that it can improve its products and services according to it. 

Maslow’s Hierarchy of Needs Theory will also help the company to understand its full potential and create and develop new products. This theory will help in improving the productivity rate of the company and thus results in more output and better utilization of materials. The implementation of this theory will allow the company to experiment with its products as the company has already created a loyal customer base through the adaptation of this theory. Thus this theory helps in the growth and development of the company.

Consumer Decision-Making Process Theory

The “Consumer Decision-Making Process Theory” is a theory that deals with consumer behaviour while purchasing any product or commodity. Consumer’s things differently when purchasing a product and this theory helps companies to understand the basic nature of the customers (Kotler et al. 2019). The companies by understanding the needs of the customers will allow them to create their products accordingly to the preferences of the customers.

Uber Eats has introduced this theory in its marketing strategy to improve its brand among customers. The theory helps to create awareness among the customers of a particular product of the company, thus helping the company to sell its products more efficiently (Andrews and Shimp 2017). The theory helps the company to research and gather information about the market and the products the customers are buying more, this will help the Uber Eats Company to manufacture an alternative product to sell it.

The theory allows the company to know about the demands of the customers and to improve the quality, brand, and price of the products or services. The theory enables the creation of a strong and loyal customer base that will help the company to innovate its product without the fear of losing out on its customers. Uber Eats Company by implementing this theory will have more knowledge about its customer's choices and preferences.

4. Company matrix

Table 1: Company matrix

Conclusion 

This study basically deals with the most important factors of business management. A marketing mix is a tool that is implemented to flourish the business of a particular company. Moreover, this study has disclosed the marketing strategies and the elements of the marketing mix such as price, product, promotion and place that will enable Uber Eats to flourish in the markets of the UK. Various other strategies like Development and Diversification Strategies and many more have been discussed above. Moreover, the theory of the Consumer's Decision-Making Ability and Maslow's Theory of the Hierarchy of Needs is also illustrated in the study that will throw light on the benefits of the Company's success in the international markets. The implementation of the above-mentioned strategies will enhance the spread of the company. Moreover, the strategies elaborated will help the company to understand the needs and demands of the consumers and focus on fulfilling their preferences. 

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