Processes

Question 1

Situational Analysis - SWOT

Answer 1

• purpose of SWOT analysis: enable (b) to understand their current position by identifying internal strengths + weaknesses
• also provides (b) w/ info on potential opportunities + threats when entering market (global or dom)
• SWOT informs rest of the marketing process as
  marketing objectives + strategies can only be determined upon completion of the SWOT
• Strengths: good rep, motivated workforce, unique product, experience
• Weaknesses: poor image, outdated products, inefficient operations, lack of knowledge
• Opp: possibility for entering a new market (expansion), favourable eco conditions, little comp
• Threats: new govt law passed, actions of comps, size of market = shrinking

Question 2

Situational Analysis - product life cycle

Answer 2

→ Each stage will determine how product is marketed

• Intro - new to market = slow sales, low profit: requires heavy promotion to increase customer awareness + market share (main obj) e.g. set low price
• Growth - sales increase, profits rise, high levels of promotion, comp grows
• Maturity - high comp, sales plateau as market becomes saturated - strategies = differentiating product
• Post-Maturity:
• Decline - sales fall, neg profits, reduce promotion efforts, narrow distribution + eventual elimination
• Renewal - product revitalised, new promotional campaigns, brand altered
• Why products decline: comp, tech trends (out of fashion)

Question 3

Market research

Answer 3

• process of collecting, recording + analysing info
• important: allows (b) to be well informed about target market’s needs + wants, allows (b) to implement effective marketing strategies, ensure marketing strategies targeted at correct target market
• without accurate research = may be impossible for (b) to achieve its marketing objectives of a strong position in the market + increase sales
• provides info on comp env, consumer behaviour + other factors that can impact success
• is conducted to increase sales + market share + decrease waste
• Marketing strategies = perform best when are based on accurate, up to date, detailed info
• Primary data: figures collected from original sources (own research) e.g. surveys = asking no. of people same questions = about attitudes, preferences, buying behaviour
• Secondary data: info that has already been collected by others e.g. govt stats

Question 4

establishing marketing objectives

Answer 4

• the realistic + measurable goals to be achieved through marketing plan
• Goals must be flexible
• SMART approach
• Three common marketing objectives:
• Increasing market share - increase this = increased sales + therefore profit
• Expanding product mix - total range of products offered - if increase products = increase profit - consumer tastes change constantly = need diverse product mix
• Maximising customer service - responding to customer needs + concerns - builds loyalty + provides positive feedback to community
  (strategies to improve: find wants(customer-orientated), train + reward employees, watch competitors offers)
• Also marketing objective: increase profit as marketing is a revenue centre so therefore need to increase sales (all objs will increase sales + therefore profit)

Question 5

Identifying target markets

Answer 5

• Are present + potential customers to which a (b) intends to sell its products
• (B) identifies + selects a target market so it can direct its marketing strategies + resources towards satisfying the groups needs + wants
• (b)’s can have a PRIMARY TM (most marketing resources are directed here + generates most revenue)
• SECONDARY TM (smaller + less important) e.g. parents
  Three types of consumer markets:
• Mass Market - seeks large range of customers, single marketing mix, similar needs
• Market Segmentation - subdivided into groups based on one or more characteristics
• Niche Market - specific + narrowly selected TM segment
  ADV of niche: avoid direct comp w/ larger (b)’s, can
  recruit more specialised staff = greater product knowledge + stock more specialised equip = will allow comp adv = gain sales + profits
  Why? → direct marketing strategies + maximise efficiency, time + cost, satisfy needs of target group, better understanding of customer behaviour, collect relevant data more efficiently, refine strategies

Question 6

Developing marketing strategies

Answer 6

• Actions undertaken to achieve (b) marketing obj through marketing mix
• encompassing research, distribution + selling
  Marketing Mix - the four P’s
• Product: g/s (b) intends to provide in marketplace = must consider quality, image, logo, packaging + positioning against comps products –> also intangible benefits e.g. prestige, satisfaction
• Price: cost to consumer of buying a g/s: must consider cost to (b), desired profit margin, pricing strategies of comps –> consumers reaction to price = influence sales e.g. low price may encourage sales or lead to perception as poor quality
• Promotion: process of creating + maintaining consumer awareness + interest towards g/s –> aims to convince/persuade/ establish need in consumer –> done through advertising, sales promotion etc
• Place/Distribution: methods of distribution + availability of the good –> must consider storage, transportation etc = restricting availability = creates image of prestige

Question 7

implementation, monitoring and controlling (general)

Answer 7

• Implementation: process of putting marketing strategies into operation to achieve (b) goals through marketing mix
• Monitoring: process of comparing actual against planned performance = checking + observing actual progress of marketing plan
• Controlling: comparison of planned against actual performance + taking corrective action to make sure the objs are obtained
  Why IMC is important:
• use results + observations to compare actual w/ planned results to revise marketing strategies
• can then make necessary changes to strategies = to achieve their marketing objs + improve perf of (b)

Question 8

implementation, monitoring and controlling - developing a financial forecast

Answer 8

• (b)’s predictions about the future = specifically details costs + revenues for each strategy
• By measuring sales potential + revenue forecasts for each strategy + comparing these w/ anticipated expenditures - (b) can effectively allocate marketing resources
• Cost-benefit analysis can be used to determine most appropriate course of action
• will include estimated costs involved in setting up of a g/s for sale e.g. R+D, promotion, distribution costs and then predicted sales overtime period
• analysing projected costs + revenue allows (b) to forecast future profit levels + the future success of marketing strategies
• need accurate, up to date info on how performing: mean putting measures in place beforehand

Question 9

implementation, monitoring and controlling - Comparing actual and planned results

Answer 9

• use of KPIs to measure success of marketing plan:
  Sales Analysis
• Comparing actual sales w/ forecast sales to determine effectiveness of marketing strategy
• beneficial for (b) w/ wide product range - can use to determine if product is performing strongly
• accounts for external factors e.g. interest rates, employment conditions etc
  Market share analysis
• Examines (b)’s sales against perf of competitors - determine if strategies have increased market share
• Useful for examining strengths + weaknesses of marketing plan in comparison w/ competitors
  Market Profitability Analysis
• Method = (b) breaks down total marketing costs into specific marketing activities
• Evaluates the financial (profit, sales) + non-financial (brand awareness, customer satisfaction) benefits that have been achieved by marketing plan = whether can be justified based on costs

Question 10

implementation, monitoring and controlling - revising the marketing strategy

Answer 10

• once results of sales, market share + profitability analysis have been calculated, (b) can assess which objectives are not being met + take corrective action if needed - marketing plan modified based on this info
  Changes include:
• changes in marketing mix: production, price, product, place modifications
• New product development - assists in long-term growth
• Product deletion - elimination of some lines of products