Principal of market
For this unit I will be looking at the marketing of an existing service. The service that I will investigate are the Virgin Trains service which is own by Virgin. Virgin trains spawned from Richard Branson’s multi-pronged entrepreneurial empire, following the privatisation of the railways. Despite some other companies running nationwide services, such as the economy fares of Silverlink, Virgin is by far the most comprehensive service, covering most areas of England, Wales and Scotland. Virgin is one of the best-known business names in Britain today.
The Virgin Group of companies is lead by its founder, head and prime mover, Richard Branson. Over the years, the activities of Richard Branson have multiplied, many in conjunction with other major businesses. The Virgin Group has interests that include air travel, stores, financial services, music, rail travel, entertainment, cosmetics, cola and the Internet. Virgin is a private limited company, one of the most successful the UK has ever seen. In 1986, virgin became a plc to inject more capital to finance Branson plans for developing the businesses.
But in 1988, due to not having complete control, Richard Branson bought back the business at 248 millions. Marketing can also be seen as the interface between Virgin Train and the market in which they operate. Ideally they receives information from both and, as a result of analysing and interpreting the data, enables Virgin Train to function more effectively in the market place. The chartered Institute of Marketing uses the following definition: ‘Marketing is the management process responsible for identifying, anticipating and satisfying consumer requirements profitably. ‘ Understanding customer needs
A market exists when buyers and sellers come into contact. In some markets buyers and sellers meet, whereas in others they may do business by some other form of communication such as letter, phone or fax. Markets simply provide the opportunity for exchange to take place, by bringing together consumers who share a common need or want and who are in a position to engage in a transaction. The way in which Virgin Trains respond to market signals (such as rising demand) will reflect its corporate objectives, and this will in turn influence the strategies and techniques it employs.
These objectives give an organisation a unifying purpose and create a yardstick against which to assess achievements. The marketing mix The role of the marketing department is to develop a strategy, which enables Virgin Trains to achieve its marketing objectives. Decisions are then made which turn ideas and proposals into reality. A marketing strategy involves identifying the customers whom, Virgin Trains wishes to reach and then creating an appropriate marketing mix – product, price, place, and promotion – directed at those customers in the target market.