Learning Unit 4 Flashcards
What is a Situational Analysis?
- systematic collection/evaluation of past and present data
- aim to ID internal and external forces influencing org performance
- informs SWOT analysis
What elements exist within the Marketing Environment?
Macro
Market
Micro
Explain Macro Environment.
POLITICAL AND LEGAL
(stability influences investment and tourism, govt must communicate problems carefully, management must be aware of changing laws and how govt decisions impact org)
INTERNATIONAL
(news travels into global market, can source suppliers internationally, international changes can create opportunities, be aware of cultural differences when marketing or selling)
PHYSICAL
(not infinite raw materials - beware of exploitation, affects price and regular product supply)
TECHNOLOGY
(constant changes, consider business areas, tech innovation can change processes and methods.)
SOCIO-CULTURAL
(impacts marketing techniques, media used, types of ads, social trends affect marketing strategy, trends include: demographics, lifestyles, and cultural values)
ECONOMIC
(affects consumers, orgs and government
- management must be aware of economic changes and how these will image market. includes inflation, interest, unemployment, consumer income, exchange rate. )
Explain Market Environment.
COMPETITORS
- determine price
- makes price and product differentiation
- competitive market: monopoly, oligopoly, monopolistic, perfect competition
SUPPLIERS
- ensure suppliers meet delivery, quality, price req.
- NB link in value delivery systems
- managed as part of supply chain
- supply materials directly influence profits and prices
CONSUMERS
- people with needs and money to spend
- marketing management must analyse and see how it functions
- market changes or needs to change
- types: household/indiviudual, industrial (B2B), reseller market, government market, international market
WHOLESALERS AND RETAILERS
Explain the Micro Environment.
- internal variables controlled by management
- marketing manager addresses top manager who influences resource sections
Components:
Marketing Strategy - mission statement
Resources, Skills and Abilities - human capital, skills and abilities
Marketing Mix - product/service, price, distribution, marketing communication
7 P’s of marketing:
Critically assess consumer trends, target segmentation and buying patterns.
- people have less to spend
- frustrated with over consumption
- worried about putting the planet at risk
- social values guide purchase decisions
- consume smarter - buy necessities
- want high quality durable, recyclable, repurposeful products
- buy second hand
- millennials favour “sharing economy”
- more tech savvy and educated
- make purchasing decisions based on word of mouth
- research to inform about products
- personalised, seamless experience
- social interaction with brand
Explain the role of the business in addressing consumer trends and buying patterns.
- brands need to support sharing economy
- consumers want brands to be sustainability partners
- consumers want brands to assist in resale
- brands can be connectors to other services
- new ways to build communities, relationships and connections
Explain the process of building brands in a rapidly changing South African Market.
SA SOCIETY CHANGES
bigger market, people flock to cities, subcultures, beliefs, traditions, behaviours, wealth disparities.
CHANGING AFRICAN CONSUMER
changing context, consumers more informed, rise in black middle class, young black vs young white = different preferences.
BRAND KEEPING UP?
should brands reflect society or evoke change, evoking change can be a new approach.
MARKETING TODAY
look for insight or needs gaps, SA consumers favour international brands, brands resonate more with some consumers.
Explain the key insights of consumers today.
VALUE MEANINGS CHANGED
hybrid consumers (whatever is cheaper), balance expense and utility, consumers aren’t walking demographics.
RESPECT IS ULTIMATE CONSUMER SERVICE
shoe consumers respect to foster word of mouth.
WOMEN WANT MORE
COMMUNITY ISN’T A SOCIAL MEDIA TERM
brands give back so consumers feel they are giving back
BECOMING MORE DIVERSE
transcend racial divides, shared interests
NOSTALGIA IS RISKY
difficult for heritage brands, easier for clean slate brands.
SIZE DOESN’T MATTER
don’t automatically trust well-known brands
LOCAL IS LEKKER
middle class favours local
Critically analyse the competitive environment within which brands communicate.
- external business environment
- take advantage of opportunities and leverage threats
- actions of competitors and how they impact orgs
- position to be more successful
- first ID competitors then create a competitive advantage.
The process of identifying competitors and creating competitive advantage
- ID competitors
- ID competitor strategy
- Determine competitor’s goals and objectives
- ID competitor SWOT
- Estimate competitor reaction patterns
- Select competitors to attack and avoid
- Create positioning map
Explain competitive intelligence.
- systematic/ethical programme for gathering/analysing/ managing external information
- can affect brand plans, decisions and operations
- info found in annual reports, press releases, trade magazines, internet, networking
Explain inside-out variables.
- guided belief that inner strengths/capabilities produce sustainable future
- first consider core competencies, talent and resources
- consider customer relations and distribution networks.
- strengths and opportunities identified (find out why)
- must have a central belief/message
- discover customer needs/wants through insights
Explain outside-in variables.
- create customer value
- focus on customer needs
- ID ways to expand demand
- understand different brand offerings
- use info to pursue opportunities
- look at possible growth (how to take advantage of opp)
- consider market trends
- customer experience management
Explain SWOT analysis.
S
resources, skills, distinct competence, financial resources, leadership, relations, skills.
W
deficiencies in the above, ineffective performance.
O
exploitable, favourable element, must ID for profit, survival and growth, consider in the context of the entire business, include market segmentation, competitor regulations, tech changes etc.
T
major unfavourable element, includes consumer market changes, unexpected competitors, supplier issues, legislation issues.
