Define marketing
The on-going activities of the business to reach the target market (LSM) and the methods the business utilises to connect and engage with its target market.
Why should a business want to engage with its target market through marketing?
To convince the market of the value of the products and/or services of the business, with the aim of selling these products or services and making a profit.
Role of marketing as part of the overall marketing strategy
What role does strategic planning play in overall performance and what does it involve?
It drives the performance. It involves formulating a vision and translating it into a mission statement. Translates what needs to be done today to achieve the vision of the future.
Role of marketing as part of the overall marketing strategy
Describe the steps of setting objectives, strategies and implementing them.
- Strategic planning: Vision, Mission, formulation of the marketing strategy
- Marketing strategy (brand image): Identify the overall market scope (environmental scan), determine the USP (unique selling proporition/point) and determine the marketing budget.
- Implement the marketing strategy: marketing og thr product/service (7 P’s)
- Evaluate the effectiveness of both the strategy and its implementation
Role of marketing as part of the overall marketing strategy
Define the strategic role of marketing
creating and supporting a strong and positive brand identity through a well-planned anf well-implemented marketing strategy.
Role of marketing as part of the overall marketing strategy
What is the “brand” of a business?
The perception of the business. Everything, the business does, will have an impact on the perception/brand of the business.
Strategic importance
How does a brand earn a reputation?
By trying to do hard things well
Strategic importance
List the ways marketing is of strategic importance.
- It enables the business to build a brand and use it to continuously remind the consumers about the business.
- It will help remind consumers about the business’ products and services so that it becomes TOP OF MIND when they need to buy that product.
- Create a marketing buzz (marketing communication) around the product/service. The stronger the awareness of the product in the mind of the consumer, the more likely the name will be used in future and result in more sales.
- Customer feedback: engaging with customers gives the business an opportunity to listen to positive and negative feedback to build a stronger brand and product.
Formu;ating the marketing strategy
List and explain the 3 approaches to formulating marketing strats.
find clothing examples!!!1
- Overall brand maj. – indiv. prod. min. LG home appliances
- Marketing the product/service maj. – overall brand min. Famous Brands (WIMPY, Tashas)
- Overall business + indiv. prod. equal. Revlon with max factor, charlie etc.
Formulating the marketing strategy
What are the 5 steps to implementing a marketing strat.?
Step 1: Perform an environmental scan
Step 2: Define the target market and Unique Selling Propostion (USP)
Step 3: Determine the marketing budget
Step 4: Implement the marketing mix to achieve the aims of the marketing strategy
Step 5: Evaluate the effectiveness of the process and take corrective measures
where necessary
STEP 1 OF MARKETING
How, broadly, is step 1 conducted?
By performing an environmental scan. It involves both internal and external environments.
STEP 1 OF MARKETING
Describe the external scan undertaken.
i. What the businss focuses on
ii. The types of analyses
The External analysis focuses on the relevant external elements that may affect the overall performance of the business/brand. It is important that the business identifies possible opportunities and threats as part of the strategic marketing plan in order to assess the possible impact (positive and negative) that these elements may have on the business.
A Industry analysis: PESTLE (O and T)
This is the assessment or scanning of the sector that the business operates in.
B Competitor analysis: some of PORTERS
The competitor analysis gives the business an overall picture of all the competitors in the market.
If we consider Porter’s Five Forces Model, competitors may include:
Level of rivalry in the marking
Threat of new entrants in the market
Substitute products in the market (indirect competition)
Market Mapping:
A market map is a visual representation of market conditions / trends. 4 quadrants, Price on x, quality on y.
Customer Analysis: Power of the buyer (LSM (living standard measure)/SEM (Socio-economic measurement))
STEP 1 OF MARKETING
Describe the internal analysis
The Internal analysis
The following tools could be used to help the business understand the internal marketing environment:
SWOT analysis
Value Chain
Resource-based analysis
STEP 2 OF MARKETING
Describe step 2.
Answering the question –what is the target market and why would they want to buy our product?
- USP (unique selling proposition) : the factors that will differentiate the product/service
Bases on factors – “Quality Beats Uniform Price”
- Quality
- Price
- Brand Identity
- Utilisation (incorporation of technology)
STEP 3 OF MARKETING
Describe step 3
- Determining the marketing budget:
- should be viewed as an investment rather than an expense
- Amount of money spent dependent on type of advertising
STEP 4 OF MARKETING
Describe the aim of marketing and how it relates to step 4
The aim – to ensure all 7 P’s of marketing are directed at the consumer. Step 4 – fully implemented marketing mix.
originally, just products: price,product,place promotion
then added: people, physical evidence, process (services)
Product
Describe the types of products/services one can have.
- Convenience goods: Not very brand loyal, want to have easy access (eg. bread and milk)
- Select goods: Customer considers price, quality and brand name of competitors (eg. clothing). spend some time thinking.
- Specialty goods: expensive technical products. once in a lifetime, brand is more important). Spend time thinking.
- Services: intangible (individual or part of an overall product on offer, eg. product and delivery)
Important in building brand/marketing
PRODUCT
Describe the product life cycle
Two axes. Rainbow shape with 6 vertical lines indicating stages. Heading: Product Life Cycle stages.
X axis labels for stages: 1. Development 2. Introduction 3. Growth 4. Maturity 5. Saturation 6. Decline.
It has an impact on how the business markets the product
PRODUCT
Describe the importance and uses of packaging
Today, Packaging is essential marketing.
T - Targeting different segments of the market (size differences in product + packaging size/design)
P - Protection
E- easy stacking (perfume boxes)
I - Identify manufacturer using name/trademark/brand
M - Materials used are put on the label/ shown (allergies)
PRICE
Define Price.
How is it used?
The monetary (rand in SA, another currency in another) value of a product or service that the consumer is prepared to pay (opportunity cost).
Used to remain competitive
PRICE
What should the business consider to decide the price?
- Will the consumer be prepared to pay the price charged?
- How does the price compare to competitor prices?
- Availiability, quality and price of substitute good (same brand, different product)
- Sensitive to changes in price (clothing more than food)
PRICE
Name and describe the 5 pricing strategies
- Market Penetration Pricing: sell at a low price to attract new consumers, make them loyal/familiar with product, then increase price (little profit at beginning).
- Leader pricing: The business reduces the price of some products to get consumers to come into the shop then get them to buy other products as well.
- Promotional pricing: discounts offered for a special event (eg. Christmas/mother’s day) or increasing price of red roses just before Valentines day
- Bulk discount: Offered because large amounts of product is bought: lower cost per unit
- Prestige Pricing: consumer snob association with the product.
PLACE
What does Place refer to?
Distribution
PLACE
What options do manufacturers have for “place”? (chain)
- Direct selling to the consumer
- Sell to retailer then consumer
- Sell to wholesaler then retailer (“breaking the bulk”), sell product to the consumer
- also using intermediaries and agents (personal sales)
