Overview of Marketing Theories and Business Practices
Marketing entails some strategies and also practices which have to be paid attention to so that the business yield huge profits (Peter, Olson and Grunert,2014, pg.330). Moreover, within the field of marketing, there are a number of concepts and theoretical perspectives which are key to the success of any kind of business. For the case analysis of Eco7, it displays many strategies and theories which were put into practice to enable it succeed in the business of oil production (Reich, Gordon and Edwards,2013, pg.362).
Eco7 produce oil which provide good performance in line with the product concept. To ensure that the products are sold faster to generate money within a short time, high quality of oil should be produced as this company is striving to attain (Borden, 2014, pg.6)
The oil is affordable to many consumers. This goes in line with the theory of price. It will result in maintenance of potential customers while attracting new ones (Cravens and Piercy, 2016, pg.23). At some stages, the company increased their prices so high; from the original price of $5.50 to $ 9.00 per quart is in contrary to this theory. After this bad consequences of raising prices, the company later reduced it to $5.25 which was relatively affordable thus launching it.
The company didn’t offer promotional services which is in contrary with the concept of promotion. This resulted in being overtaken by other competing firms who produce oil like Avelin.For Eco7 to overtake fast-tube stores, it must spend on advertisement as stated by the paid advertising ‘strategy (Goi,2013, pg.10).
The company managed to issue oil which meet the standards of the consumers as in line with the concept of production (Dominici,2012, pg.25). This achievement boosted profitability and improve its image in accordance with the word of mouth strategy.
The theory of processes is taken into consideration when the company undertook distribution strategies (Jain,2014, pg.74). It also pays close similarity with the strategy of marketing relationship which enhances the friendship between it and the customers.
Through improvement of products overtime like PCMO, the company plays its role in line with the marketing concept. Furthermore, provision of incentives and taking part in innovative practices is within the strategy of transactional marketing (Buttle,2016, pg.40).
The business gone wrong when it raises the price of oil. This resulted in decrease in demand of its products thus losing its markets to the competitors (Hooley, Lynch and Shepherd,2016, pg.13). It also didn’t not invest mainly in promotional practices as compared to Avellin company which made Eco7 to realize low amount of sales.
For the company to reach high level of production and maintain its competitive advantage, it has to put much concentration on production of DIFM products instead of DIY. This is because DIFM are high demanded by consumers and provide quality services to the vehicles as compared to DIY (Lascu and Zinkhan,2014, pg.10).
References
Borden, N.H., 2014. The concept of the marketing mix. Journal of advertising research, 4(2), pp.2-7.
Buttle, F. ed., 2016. Relationship marketing: theory and practice. Sage.
Cravens, D.W. and Piercy, N., 2016. Strategic marketing (Vol. 6). New York: McGraw-Hill.
Dominici, G., 2012. From marketing mix to e-marketing mix: a literature overview and classification. International journal of business and management, 4(9), pp.17-24.
Goi, C.L., 2013. A review of marketing mix: 4Ps or more?. International journal of marketing studies, 1(1), p.2.
Hooley, G.J., Lynch, J.E. and Shepherd, J., 2016. The marketing concept: putting the theory into practice. European journal of marketing, 24(9), pp.7-24.
Jain, S.C., 2014. Standardization of international marketing strategy: some research hypotheses. Journal of marketing, 53(1), pp.70-79.
Lascu, D.N. and Zinkhan, G., 2014. Consumer conformity: review and applications for marketing theory and practice. Journal of Marketing Theory and Practice, 7(3), pp.1-12.
Peter, J.P., Olson, J.C. and Grunert, K.G., 2014. Consumer behaviour and marketing strategy (pp. 329-48). London: McGraw-Hill.
Reich, M., Gordon, D.M. and Edwards, R.C., 2013. A theory of labor market segmentation.
The American Economic Review, pp.359-365.
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