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LO1: Role of Marketing and Its Interrelation With Other Functional Units LO2: Elements of Marketing Mix LO3: Development of Marketing Plan

The document discusses the role of marketing and its relation to other organizational functions. It defines marketing and explains key marketing concepts like the marketing mix and marketing orientations. It also analyzes Cadbury's application of these concepts and the roles and responsibilities of its marketing department.

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Wajeeha Umer
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0% found this document useful (0 votes)
121 views

LO1: Role of Marketing and Its Interrelation With Other Functional Units LO2: Elements of Marketing Mix LO3: Development of Marketing Plan

The document discusses the role of marketing and its relation to other organizational functions. It defines marketing and explains key marketing concepts like the marketing mix and marketing orientations. It also analyzes Cadbury's application of these concepts and the roles and responsibilities of its marketing department.

Uploaded by

Wajeeha Umer
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Table of Contents

Introduction
LO1: Role of marketing and its interrelation with other functional units
LO2: Elements of Marketing Mix
LO3: Development of Marketing Plan

Introduction:
Marketing can be defined as management and study of relationships. The original meaning of the
term literally referred to going out in the market and selling the goods. It is considered as a
creative field which itself includes advertising of the product, distribution and sale of it. In the
modern context the term marketing goes beyond the process of exchange of or sale of goods and
is observed as an integral part of the socioeconomic system of the organization. Marketing is not
a single term or activity but rather a collection of activities linking the organization’s profitability
to its market. These collections of activities include exchange and distribution of goods or
services in the market, warehousing of them, shipping or transportation of goods, selection of
channel of distribution, inventory check and so on and so forth. Marketing department is often
considered as a backbone to any organization. (Sherlekar et al, 2010)

Meaning of Marketing is available at: https://www.thebalancesmb.com/what-is-marketing-


2296057
The report has been prepared by studying roles and responsibilities of marketing function, how
marketing related to the wider organization, interrelationships between marketing and other
functional units of organization, marketing mix etc. The role of marketing along with its five (5)
concepts (Schmitt, 2011) and marketing mix is studied in context of Cadbury, formerly known as
Cadbury’s and Cadbury Schweppes which is a British multinational confectionary company. The
roles and responsibilities of marketing function of along with its interrelationship with other
departments is studied with respect to Cadbury. The study is concluded by designing and
drafting a basic marketing plan and a detailed coherent evidence-based marketing plan for
Cadbury using the five (5) concepts and 7P’s of marketing mix.

LO1: Role of Marketing and its interrelation with other functional units of
organization:
P1: Key roles and responsibilities of Marketing function
Marketing function can be defined as a role adopted by any organization to identify and source
either existing products or potentially new products in the market and promote them by
distinguishing them from other substitute or similar ones in the market. A generalized market
function includes functions like conducting a market research, designing and drafting a market
plan, development of the desired product, financing, risk taking, packaging and labeling,
advertising or promotion of the product, distribution, customer service and customer relations.
(See appendix 1) The marketing department who is in charge of marketing plays a crucial role in
promoting the mission and business of an organization. (Rust et al, 2010)

Fig: Marketing functions are available at: https://www.mbaskool.com/business-


concepts/marketing-and-strategy-terms/10696-marketing-function.html
The role of marketing in any organization is enormous. It helps the organization to meet the
consumer need and wants by identifying them and adopting their marketing strategy accordingly.
(Chen et al,2011) Marketing ensures survival, reputation and growth of any organization through
customer retention and by increasing the market share. It helps to widen the market through sales
promotion by advertising on media, PR etc. to promote the products far wide. In case of Cadbury
the consumers remember the brand and products through the advertisements or through the
marketing. Sometimes marketing helps in creating the product’s utility as it is the main reason to
satisfy the wants like for example Cadbury advertises about its new chocolates saying on what
occasions you can gift them hence creating a utility for it. Other roles include facing competition,
economic growth and management of demand. Marketing department should work with other
departments of the organization in order to satisfy the consumers’ needs and wants. As Peter
Drucker said Marketing is the entire business seen from the consumer’s point of view. (Heinonen
et al, 2010) In the case of Cadbury, when the marketing team comes up with promotions such as
offering 10% or 20% extra or special occasion packaging, they would be required to work and
take approval from other departments such as production/ operations department to manufacture
products according to the quality and design laid by the customers through marketing research
and meet the volume of orders generated by the marketing department. They should also work
with finance department to meet the budget allotted for research, planning and implementing the
advertisement of products, promoting and distributing them. Cabdury;s marketing department
should also work with Human Resource Management to ensure research and development of
new products are done, achieve production targets and to create a competent sales team.
Therefore, all the departments in the organization should corelate with each other to implement a
successful marketing plan and achieve the goal of the organization. (Ramaswami et al, 2009)

P2: Roles and responsibilities if marketing relates to wider organizational


context
Marketing concepts can be broadly classified into five (5) which is also known as marketing
orientations. (Hoffman and Bateson, 2010) These major five concepts consist of the core
marketing structure of Cadbury’s company. These concepts followed by Cadbury involve taking
into account the current trends along with the future ones for effective marketing planning.
Cadbury’s marketing team uses these concepts to create or produce the products and market
them to customers which would be seemed as a basic marketing philosophy. These concepts are
namely Marketing, Selling, Product, Production and Social marketing concepts.
Fig:The five concepts of Marketing are available at:
https://www.slideshare.net/dankjohn/marketing-concepts-production-social-exchange-selling-
product-and-holistic-marketing-concepts
Production Concept: This first and foremost concept is one of the oldest one in the books of
marketing which says that consumers are inclined to products that are affordable to them and of
good quality. Cadbury’s uses this concept in their marketing, that is the reason all of their
products are at affordable prices when compared to their competitors and of good quality.
Product Concept: The second concept of marketing holds that the consumers will choose
products that are value for money, best quality and which is innovative. Cadbury’s company
markets its products in a very innovative way and offers quality and customer satisfaction which
lets them to retain the consumers by following this concept.
Selling Concept: In the modern day every consumer is attracted through innovative promotions
and will concentrate on products that are highly promoted in the market. This is one of the
reasons why Cadbury’s company spends too much on their advertisements.
Marketing Concept: This concept is used by the organizations to fulfil the needs of the
marketing strategy (See appendix 2) through building everlasting relationships with the
customers and maximizing the value. Marketing is a sense and sell philosophy rather than make
and sell one. This concept finds the right products to the customers instead of right customer to
the products. Cadbury has followed this concept by offering wide products that appeals to
children, diversifying product rage targeting every consumer, and retaining everlasting
relationships with customers.
Social Marketing Concept: This is a concept of marketing which overlooks the conflicts
between the customers short-term wants and their long-term welfare. In other words, the
company addresses the current needs of the customers without compromising the future ability to
meet their needs. The factors those involved in this are being socially responsible with respect to
pollution, corporate social responsibility and employee welfare etc. Cadbury’s have taken up
many Corporate social responsibility activities such as rain water harvesting, solar panels for
electricity reducing the annual carbon dioxide emission, non-formal schools set up for their
workers children, various education programs and various other activities as listen on
dearcadbury.com which is their official Corporate Social Responsibility website.

M1: Analysis of roles and responsibilities of marketing in context of


marketing environment
Marketing management is the process of designing, planning and implementing various
strategies of marketing in an organization. (Shankar et al, 2010) These strategies involve pricing
of a product, estimating the demand of the product, advertising, selecting the distribution
channels and sales of the products. The role of marketing with respect to marketing environment
can be defined as follow:
Developing apt strategies and plans for marketing: The marketing department or the
marketing manager has to initially recognize and identify the needs and wants of the targeted
customers and provide them with products accordingly. This brings out the balance between the
objective or goals of the organization and the available market opportunities.
Marketing Information Systems: It is a part of Management Information Systems (MIS) which
is used for marketing decision making. Marketing Information Systems constantly analyses and
asses marketing information that is procured from in and out of the organization. It also helps in
distributing the relevant information after analysis to its marketers who can make efficient
decisions regarding operations such as pricing of products, development of existing or new
products, distribution channels, advertising and promotion using various medias. (Smith et al,
2011)
Monitoring of Marketing environment: The marketing department or the manager should
identify the crucial trends in the marketing environment and convert them into opportunities.
These trends may involve changing customer preferences, socio-economic trends, changing
market conditions, political changes, internal and external factor changes etc. Cadbury’s has
done this in recent years, earlier they had very few varieties in chocolates but with changing
consumer tastes and preferences they have added various varieties of chocolates to their product
list in order to survive.
Creating customer satisfaction, value and relationship: Every customer looks for those
products which offer high satisfaction and tend to choose those organization which offer them
those. Therefore, first and foremost priority must be given to quality management programmes
that will increase the loyalty in the customers. Cadbury’s is no exception to this; it has developed
immense customer loyalty since decades and has long-lasting relationships with customers too.
Market Segmentation: (Wedel and Kamakura, 2012) The market in the present era is very
volatile due to globalization, therefore organizations need to segment the markets in order to
connect with all of their customers. The marketing manager in the organization helps with the
segmentation to serve the customers efficiently. Even Cadbury’s has done this that is the reason
their products differ in every country as they have segmented the market and offered the
products accordingly.

M2: Analysis of interrelationships between marketing and other functional


units
When an organization wants to develop a business plan it has to integrate and coordinate various
functional areas in order to achieve the desired goal or business objective. Marketing is involved
in various functions such as pricing, product development, distribution channels, sales etc. In
order to achieve the objective of the business, all the departments should be coordinated since the
initial phase. A comprehensive understanding of the relationship between the marketing and
other functional areas is given as under:
Fig: Relationship between marketing and other functional areas is available
at:https://image.slidesharecdn.com/functionalobjectivesandstrategies-120628060746-
phpapp01/95/functional-objectives-and-strategies-8-728.jpg?cb=1340863705
Marketing and Finance: In any organization every marketing plan involves a financial aspect
evaluating the cost incurred and benefit acquired (in the form of brand, profit, sale of product
line etc.) which can be expressed in monetary or non-monetary terms. Financial tools such as
budgeting and profitability are the key aspects of marketing strategies. These marketing
strategies should be viewed and evaluated as investment decisions and the evaluation shouldn’t
be limited to new products but should also include decisions relating to advertising, promoting,
price and distribution channels. The link between marketing and finance is not a one-way link
but rather a two way because development of any financial plan involves budget requirements,
capital needed, analysis of cash flows, analysis of credit policies that requires input from
marketing. These inputs such as revenue and sales forecasts that are contained different
marketing plans are required for financial planning. (Grunig and Grunig, 2013) In the case of
Cadbury’s, whenever the company comes up with a new product or with a new advertising
promotion, it consults with the finance department for the allocation of budgets for the same,
estimating revenues and cashflows regarding the launch of the new products.
Marketing and Production: There is a dual relationship between the marketing and production
departments where the first one determines the sales forecast for each product and the product
line for more efficient production capabilities and the latter one determines the number and type
of products which can be marketed. The management can follow to basic strategies to overcome
the difficulties in fluctuations and uncertainties in the demand forecasting such as (a) change the
production units when there is change in current resources, improved inventory management etc.
(b) influence the level or timing of demand, nature in agreement with constraints of production.
The interrelation between the both the departments is very crucial when launching a new product
into the market as the production facilities are dependent on extensive market research-based
estimates. (Wong et al, 2011)
Marketing and research and development: The research and development department of any
organization should work closely with the marketing department failing which results in
developing products that are markets nightmare. This interrelation is mainly important in case of
development of new products and should hold the relation in every stage since inception from
idea generation to the final product development stage. The product design stage which has been
historically considered as the sole responsibility of the research and development department is
now benefitting from marketing research inputs like product features most desired by customers
etc. (Ernst et al, 2010)
Marketing and Personal: the personal or human resource department is concerned with hiring,
training and appropriate management of marketing personnel. Marketing department should
collaborate with the personnel department while hiring the marketing team by giving the job
descriptions, shortlisting the candidates by screening, designing and implementing training
programs for the marketing personnel. (Gummesson and Mele, 2010)

Therefore, most of the marketing decisions are dependent on the interrelationships between the
marketing and other functional departments in the organization. In order for the marketing
strategies to be more effective and efficient they have to take into consideration considerations of
other non-marketing business functions in design and implementation of market research,
development of marketing strategies, marketing planning and control systems. When Cadbury
wants to promote it new products or existing products with discount offers or any other special
offers it has to consult the finance department for budget allocation and cost and benefit analysis
of the same strategy. Later they have to consult with the productions/operation team to check for
production capabilities by forecasting the demand and wants. On the other hand, before doing all
these they have to consult with the research and development team to conduct a study on whether
the offer or strategy would be successful if implemented. At last they have to consult with the
personnel team to hire an efficient sales team to promote the said strategy or offer. Only by
integrating all the functional departments with the marketing department will the company be
able to achieve its objective.

LO2: Use of Marketing mix (7P’s) to achieve overall objectives


P3: Application of Marketing mix to marketing planning to achieve overall
objectives
Marketing mix can be defined as giving the right product at a right price in the right time at a
right place. Marketing mix predominantly consists of 4P’s namely product, price, place and
promotion. (Goi, 2009) Sometimes this is extended to 7P’s including packaging, people, process
and physical evidence. When these aspects are handled correctly, they lead to the success of the
business plan and help in achieving the objective but if handled wrongly it would take years for
the business to recover. Using the marketing mix needs a lot of research and understanding of
market. Marketing mix concepts are mainly used in marketing strategies to achieve the business
objective. (Balmer, 2009)

Fig: The 7P’s of Marketing mix is available at: https://www.leadagency.com.au/marketing-mix-


best-practice-effective-examples-of-the-seven-ps/
Cadbury, formerly Cadbury’s and Cadbury Schweppes are a British multinational confectionary
wholly owned by Mondelez International since 2010 made a brand value for itself over the
global markets. Cadbury is known to almost every nuke end corner of the world due to its good
quality and reasonable prices in confectionary. One of the reasons for this is also due to the
extensive use of marketing mix in their marketing strategies. When it comes to the first P-
Product, Cadbury offers a huge variety of product range and they make it count. The products of
Cadbury are classed according to demographics, seasons, festivals etc. For example, they offer
different products in USA, UK and in India and different products for festivals such as
Halloween, ester, Christmas etc. Their products are not only restricted to confectionary but also
include biscuits, beverages, deserts, ice-creams etc. Therefore, with this huge product list they
can gauge up on the customer base and satisfy their wants accordingly. The huge product list of
Cadburys includes dairy milk, dairy milk fruit and nut, bournvita, Pretzel, Crème egg, oreo,
Caramel cake bars, five star etc. Getting on to the next P-Price, Cadbury products are well priced
reasonably according to the quality offered by them. They have products whose prices are high
like silk, bournvile etc. as well as products like eclairs, perk, fivestar which are priced lower to
cater the needs of other segment of customers. They also have gift packages containing
chocolates in festive season whose price is strategically set so that the customers have the
affinity to buy them. Using this aspect of marketing mix they have priced products to meet all the
segments of customers and cater to their needs. The next P-Place adopted by Cadbury lets them
to market their products globally all over the world. Cadbury chocolates are available all over the
world due to their amazing distribution channels catering a huge client base. Their products are
available at almost all rural, semi-urban and urban areas that has helped the company to grow big
and make products available to huge number of customers in turn generating good profits. This
provides us with an overview of place marketing mix in Cadbury’s marketing strategy. The last
P-Promotion adopted by Cadbury; it offers them various platforms to promote themselves.
Promotion strategy of marketing mix is done thorough visual media, written media, posters,
youtube, social media and radio etc. We have seen that using this marketing mix approach the
company has made huge efforts in making its product reach the customers. They use different tag
lines for different products to create utility and promote them, for example, in india dairly milk
has this tagline “Kuch meeta ho jai” which promotes and encourages customers to share
chocolates when there is good news and bournvile has “you earn it” tagline. This concludes the
marketing mix adopted by Cadbury company.

M3: Different tactics applied by organizations to achieve business objective


Various business organizations use various tactics and strategies to achieve their goals and
objectives. Most organizations such as Cadbury uses the marketing mix 7P’s in the marketing
strategies to achieve their business objectives whereas on the other hand Hershey’s which is a
competitor to Cadbury uses the process of market segmentation to achieve their goals or
objectives. (Mohammad, 2015) Market segmentation process of Hershey’s involves defining the
target market, segmenting the market place, evaluating the segments using specific criteria,
evaluation of attractiveness of the segments constructed, and selection of target markets. After
doing all these, a positional strategy is designed, developed and implemented followed by
feedback and evaluation of the segments.
Cadbury’s used the extended marketing mix, the 7P’s to achieve their goals or objectives and
these are as follows
Price: The price of the product provides value for money and quality. This is very essential part
of the marketing mix as customers are willing to pay for those products that satisfy their wants
and are affordable too.
Product: The product manufactured and offered by the company should be according to the
customers’ needs satisfying their wants. This builds an everlasting relationship with the
customers.
Place: This aspect of the marketing mix should ensure that the products are easily available for the
customers. For example, the products must be available in all the nearest stores of the targeted customer
place.
Promotion: This marketing mix aspects deals with promoting the product through all available platforms
such as advertising over social media, visual media, print media etc. As Cadbury is a B2C company they
focus on rigorous advertising and sales promotion.
Process: This marketing mix aspect of the company includes services to the customer along with the
products. Cadbury products are always delivered to the customers with a smile to improve the customer
experience.
People: This part of marketing mix includes the employees, management, culture of the organization and
customer service of Cadbury company which forms the crucial part of the organization.
Physical Environment: This part of marketing mix constitutes the factories, research and development
facilities, offices, and user interface at the Cadbury organization.

LO3: Development and evaluation of basic marketing plan


P4: Basic marketing plan for Cadbury

Fig: Basic Marketing plan is available at: https://www.calltutors.com/Articles/Marketing-Plan-


Help
A basic marketing plan can be developed using the following procedures: (Westwood, 2013)
The company Cadbury should first segment its customers into low, medium and high price
segments and identify the potential customers within the segments. Being such a huge company,
it should do a clear research as to what are the needs and wants of all the three segments of
customers. Cadbury should identify the one thing that makes it unique or differentiates it from
others and try to enhance it. All the products must deliver at utmost customer satisfaction. The
next step is identification of the target customer base in the marketing strategy planning process
after the research is carried out. Once this is done then they have to manufacture products
according to the target group and deliver to them. Cadbury should identify its competitors who
offer similar product to the same target group of customers and analyze them to learn about the
changing market environment like customer tastes and preference etc. Design, draft and
implement strategies according to the target markets after carefully evaluating the research done.
As Cadbury is more into chocolates, they should use good channels of promotion and
distribution to make it available to children mainly. The company must use television media,
social media for promoting as it has a huge reach. Monitor the results to check the effectiveness
of the marketing strategy after evaluating the marketing plan.

M4: Coherent marketing plan for an organization


The coherent marketing plan of Cadbury includes the 7P’s of the marketing mix which has
interrelated variables to satisfy the needs of the customers and at the same time achieve the
organizations objective. (McDonald and Wilson, 2016)

Fig: The 7p’s of Marketing mix is available at: https://www.smartinsights.com/marketing-


planning/marketing-models/how-to-use-the-7ps-marketing-mix/
Product: The products of Cadbury are well known globally and the company keeps adding new
ones based on the choices and wants of the customers. For example, Cadbury gems was just
intended for kids and now it has been integrated with dairymilk and also in ice-cream. They
launch new products based on the wants of the customers or in order to give competition to the
competitors.
Promotion: Be it existing products or new ones Cadbury should invest a huge amount in
advertising and promoting its products on various media platforms and through any other
available platforms.
Price: Cadbury has diversified price range offering products to each and every segment of
customers. It has to maintain this diversified price range so as to achieve its objective.
Place: Product availability at the targeted markets plays a crucial role in achievement of the
business objective. Cadbury should adopt more distribution channels in order to increase the
inventory management at the targeted customer markets.
People: Cadbury should have good employees, management and customer service as well to
market the products effectively and efficiently.
Process: Cadbury’s marketing strategies should basically focus on meeting the needs and
satisfying the wants of the customers along with the financial gain. These marketing strategies
should be of more customer centric.
Physical evidence: Cadbury should make sure that the marketing strategies enhance the in-hand
experience by improving the packaging and delivery of the product to the stores as well as to the
customers.

Conclusion:
The report has been prepared and executed with respect to the study of the marketing functions
of Cadbury, a British multinational confectionary. The study starts by explain the roles and
responsibilities of the marketing function and how it related to the wider organizational context
with respect to the said organization. Later, roles and responsibility of marketing with respect to
the marketing environment is studied and the interrelation ship between marketing and other
functional areas in Cadbury is analyzed. Cadbury’s five concepts of marketing such as
production, product, selling, marketing, and social marketing concepts are discussed in detail as
well.
The 7P’s of marketing mix is discussed in detail with respect to Cadbury and how it utilizes them
to achieve its goal or objective. We have even compared how organizations apply the marketing
mix to achieve their objective. Later, we have evaluated different tactics followed by competitors
like Hershey’s in comparison with that followed by Cadbury. Cadbury’s use of marketing mic in
designing and implementing the marketing strategies are discussed in detail. Cadbury can also
use product mix (Mayer et al, 2014) along with marketing mix in order to achieve its objective
on more efficient and effective way. Cadbury can use Strengths, Weakness, Opportunism and
Threats (SWOT) (See appendix 3) (Helms and Nixon, 2010) analyses to adopt and survive in the
changing market environment. The report has ended by drafting a basic marketing plan for
Cadbury and producing a coherent evidence-based marketing plan using the marketing mix
essentials.
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Appendix 1:

Tinobusiness.com (2019) Marketing functions, available at: https://tinobusiness.com/marketing-


function-identify-satisfy-produce/
Appendix 2:
locusassignments.com (2016) Marketing strategy available at:
https://www.locusassignments.com/solution/unit-19-marketing-planning-strategy-assignment

Appendix 3:

apessay.com (2016), Cadbury swot analysis available at:


https://apessay.com/order/?rid=359c285a5039b0ae&noapp=1&edugram_request_id=5cbd049d2
ed217.15691766

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