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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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(identify 3 characteristics of the marketing concept)

1.1 Terms of Reference

On the 10th of October 2018, tutor of Marketing in Edinburgh College, Peter McPherson, instructed Jagoda Janeczek to create a report on Lush Cosmetics Advertising Campaign. This report has been requested as a part of the first year of HND Business.

1.2 Procedures

This report was conducted by means of the following secondary research methods:


Handouts from Edinburgh College

[Some kind of book]

In the following conditions that are limited by the time, there is no time to use the primary research. However, in any other circumstances the primary research, such as questionaries and interviews would be used approve the liability of the secondary sources used to create below report.



The practice of marketing had changed a lot, comparing it to the beginning of its existence. Producers were changing their practices, tried to focus on different factors of the product, so it can be sold better, which would result in a higher profit.

The product orientation era

Product orientation of marketing focuses on a product that the company intends to sell, so the main concern is its quality. It assumes that as far as the product is on a high standard there will be a high demand for it, so it can be sold in a right price. The company invests in research and development of products and the continuous evolution during their life cycles, in order to maintain the attention of potential customers. The product orientation focuses on keep on improving the product, ignoring the market and customers needs and wants.

The sales orientation era

During the wars in the 19th century, despite the industrial development being interrupted, competition grew and the focus on marketing turned into selling. Communications, advertising and branding started to become more important than the actual product. Companies were focussed on distribution, communication and persuading customers that one manufacturers goods were better than others and making a superior product or service at the right price, and combining that with aggressive sales tactics, you can persuade people to buy whatever you're selling.

The market orientation era
From the 1960s onwards most markets have become saturated (the size of the market remains the same). This means that there was intense competition for customers. The companies needed to find another way to attract customers. They started identifying the target audience and find ways to convert them to long-term buyers. They attempt to understand consumer needs (and potential needs) and allocate organisational resources appropriately to meet these needs. They are also increasingly interested in ensuring that employees understand marketing, i.e. that everyone within the organisation involves themselves with marketing activities. The companies stopped being concerned about making a good quality product or service and started making sure that the product or service offered will fulfil the wants and needs of targeted audience.


3.1 Definition of Marketing:

A management science which anticipates, identifies & satisfies customer wants at profit.

*It doesn't make any profit at charity/voluntary service. The reason of those companies to not to gain any income, but to i.e. provide a good service.

3.1 History of Lush Cosmetics


4.1 Macro environment

A PESTEL analysis (stands for: political, economic, social, technological, legal and environmental- these are the factors taken under consideration) is a tool used by marketers to analyse and monitor the external marketing environment and its possible impact on an organisation. It also identifies: strengths, weaknesses, threads, and opportunities using the SWOT analysis.

(4 points under each heading)

Political- the influence of the government on company's prosperity, such as taxes, duties, trade tariffs etc.

Economic- These factors are determinants of an economy's performance that effects the company directly and has a structured, long-term influence on it.

These are in example: inflation, foreign exchange rates, economic growth patterns etc, depending on what's the company's area of business.

Social- examine the social environment of the market, determined by cultural trends, demographics, population analytics etc.

Technological- apply to innovations in technology that might affect the market and (the business as a result) in favourable or unfavourable way. This refers to automation, research and development and the amount of technological awareness that a market possesses.

Legal- it's all of the laws that affect the business environment in a certain country while there are certain policies that companies maintain for themselves. This analysis helps the company to create a legal strategy to adjust the company's work to: consumer laws, safety standards, labor laws etc.

Environmental- all of the influence determined by the surrounding environment. This aspect is more important for certain industries, such as: tourism, farming, agriculture etc.

4.2 Micro environment- locally; local competition, market, influences;

Customer, competition, distribute

SWOT ANALYSIS- strengths, weaknesses, opportunities.


Product mix is a set of all of the product lines and items that a company offers for sale.


5.1 Dimensions of the product mix decisions

Width- number of different product lines the company carries.

Length- the total number of items the company carries within the product lines.

Depth- the number of versions offered for each product line. (variations, types etc.)

Consistency- how closely related the product lines are in terms of in example: end use, production requirements or distribution channels.


Ways to increase business with Product mix decisions:

Add new product lines à widen the product mix. New lines benefit from and build on the company's reputation in its other lines.

Lengthen the existing product lines. More items in the product lines may result in a more full-line company.

Add more versions of each product à Deepen the product mix.

Make product lines more consistent (or less). This depends on whether the company wants to have a strong reputation in a single field or in several fields of business.  COPIED STRAIGHT FROM THE WEBSITE


Product life cycle identifies has 4 different stages. A company selling a certain product needs to pay attention to different sectors of the business, depending on what stage their product is currently on and create the strategy in advance to be prepared for the change of the stage.


Introduction Stage- It's the stage, when the new product is being introduced to the consumers. The finances spent on a research, development, consumer testing, and the marketing might be high especially if it has a competitive sector. The market for a selling product is small, so the sales are low, but all of this will be increasing due to above investments in marketing, etc.

Growth Stage- is a stage where all of money spent on public relations pays off; it's characterised by a strong growth in sales and profits. This makes it possible for businesses to invest more money in the promotional activity to maximise the potential of this growth stage.

Maturity Stage- The product is established on the market, so the management of the company needs to maintain what they have built up. This is the most competitive time for most products, they need to consider different investments, make some modifications or improvements on the product; try to keep the product ‘new' and exciting to the consumers.

Decline Stage-  in this stage, the market for the product starts to shrink. IT can be caused by the market becoming saturated (in example people interest ed in product have already purchased it) or because there are other, better products available on the market. During this stage, the companies can still try to switch markets to cheaper markets and attract the audience with lower prices for the product.


Promotion mix strategies are used to introduce the product to the consumers. Thanks to below techniques, people know what product is it, how to use it and why they should buy it. An effective promotion strategy will result in reaching the targeted audience and convincing them to purchase the company's product. It needs to contain a clear message that will affect the customer so he doesn't only want to purchase the product but needs to do so. Promotion mix strategies include the following promotion tools: advertising, personal selling, sales promotion, public relations and direct marketing.

Advertising- includes different types of promotion, can be used to reach a large range of potential customers at a relatively low cost. This includes advertising messages, such as: television, radio or internet commercials, print advertisements, like: billboards, posters, flyers or any other one way communication between the company and potential consumers.

Public Relations (PR)- is a very effective tool, to built the attractive image of the company and creating a positive opinion on it especially, when the management avoids investing in other types of advertising or personal selling. It includes news stories, features, sponsorships, charities or other events, to be seen as believable to customers. Public Relations are gratuitous but the opinion created by somebody can be also negative.

Personal Selling- It's an interaction between two or more people. It gives a salesman the chance to convince the potential customer by for example responding their questions, present the most suitable fo them product or service.

Sales Promotions- include: special offers, discounts, coupons, free samples, contents, loyalty cards, rebates. These give strong incentive for consumer to purchase products and services because increases their perceived value. (LUSH NEVER GIVES DISCOUNTS BECAUSE OF THE QUALITY BUT: GIFT CARDS & PACKAGES WITH COUPLE OF BATH BOMBS IN THERE).

Direct Marketing- advertising such as direct e-mails, phone calls, online marketing etc. They are share the following characteristics:  less public, immediate, customised, and interactive.The purpose of this marketing is to create highly-tailored messages with the goal of building strong customer relationships.


Pricing strategies help either big or small companies base the price of their products and services on production, labour and advertising expenses and add on a certain percentage so they can make a profit. There are several different pricing strategies, such as penetration pricing, price skimming, discount pricing, product life cycle pricing and even competitive pricing that are supposed to help companies find a suitable price for their product.

Market Skimming Strategy- when the company sets an initial high price. The main point is to gain high profits in a short amount of time. This technique is usually being used during the fist stages of the product life cycle, because the price can be lowered on other stages. Companies often use price skimming when they lack financial resources to keep the consumers satisfied. Unfortunately using this strategy will shortly attract the competitive companies, to take over the dominance on the market. Although, releasing the product with a high price might suggest the higher value to the consumers.

Penetration Pricing- when the company sets a relatively low price for the new product. This strategy is used to gain the maximum level of penetration of the market as quickly as possible. This has a big influence on competitors and forces them to lower their prices as well. But the main point of setting the low prices, especially for the small companies is to gather new customers with the low prices and gain their trust thorough the time, making them loyal customers.

Cost-based Pricing- the company sets the price of a certain product depending on production and distribution costs, adding on to that figure a  percentage: margin for mark-up. In this strategy the consideration of the demand is ignored but the sellers find it relatively east to establish costs of the products.

Demand-based Pricing-

Price Discrimination


Determinants of channel of distribution


The Marketing Mix refers to the set of actions or tactics, that a company uses to promote its brand or product in the market. It includes the ‘7 P's' that stand for the following elements: product, price, place, promotion, packaging, positioning and people. It is important to look at each of the elements of the company separately to understand and analyse different ways of improving a certain sector, so the prosperity of the whole company.

Apply to Lush Cosmetics!!!

Product- is produced to satisfy the needs of a certain group of people. The kind of product needs to be adjusted to the current market demand and it fits the customers expectations.

Place- it's a placement or distribution of the product. It needs to be considered If the products is suitable for the society that it will be supplied to, what part of the society will be interested and whether it would be more profitable in the other location.

Promotion- is used to inform the consumers about the product, give it personality and attract potential customers. It is recognised by below elements:

Sales organisation

Public relations


Sales promotion

Price- can be set high to in example represent the value of the product or low to sell the product quicker.


Process- died

Physical Environment -erc

separately to understand and analyse different ways of improving a certain sector, so the prosperity of the whole company.

Apply to Lush Cosmetics!!!


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