Professional Documents
Culture Documents
BSBMKG414
Undertake Marketing Activities
72 Summary
73 Bibliography
75 Assessment Pack
“The purpose of
education is to
replace an empty
mind with an open
one.” Malcolm Forbes
Defining Qualifications
When units of competency are grouped into combinations that meet workplace roles,
they are called qualifications. These qualifications are aligned to the Australian
Qualifications Framework (AQF). Each qualification will have ’packaging rules’ which
establish the number of core units, number and source of elective units and overall
requirements for delivering the qualification.
Foundation Skills
Foundation Skills are the non-technical skills that support the individual’s participation
in the workplace, in the community and in education and training.
“Knowledge
is of no value
unless you put
it into practice.”
Anton Chekhov
This unit of competency is about being able to plan, implement and manage basic
marketing and promotional activities. It will help you with the skills you need to
demonstrate competency for the unit BSBMKG414 Undertake Marketing Activities.
On competent completion of the assessment, you will have demonstrated your ability
to implement and monitor marketing strategies.
“Marketing is the social process by which individuals and groups obtain what they
need and want through creating and exchanging products and value with others.”
Kotler
“The right product, in the right place, at the right time, at the right price.”
Adcock
“Marketing is the process whereby society, to supply its consumption needs, evolves
distributive systems composed of participants, who, interacting under constraints
- technical (economic) and ethical (social) - create the transactions or flows which
resolve market separations and result in exchange and consumption.”
Bartles
“Marketing is not only much broader than selling, it is not a specialized activity at
all. It encompasses the entire business. It is the whole business seen from the point
of view of the final result, that is, from the customer’s point of view. Concern and
responsibility for marketing must therefore permeate all areas of the enterprise.”
Drucker
“This customer focused philosophy is known as the ‘marketing concept’. The marketing
concept is a philosophy, not a system of marketing or an organizational structure. It
is founded on the belief that profitable sales and satisfactory returns on investment
can only be achieved by identifying, anticipating and satisfying customer needs and
desires.”
Barwell
“The achievement of corporate goals through meeting and exceeding customer needs
better than the competition.”
Jobber
“Implementation of the marketing concept [in the 1990’s] requires attention to three
basic elements of the marketing concept. These are: Customer orientation; An
organization to implement a customer orientation; Long-range customer and societal
welfare.”
Cohen
• Profit is a focus for many organisations, but as the public service sector and not-
for-profits are undertaking marketing efforts to enhance their profile, profit may
be a lessor driver for many
The marketing plan is derived from the strategic planning and corporate objectives
which are usually assessed on an annual basis and may stretch over three to five years.
It is here that the vision is turned into the mission reflecting what the organisation is,
and what it does. The mission provides objectives from which goals may be taken.
The goals relating to marketing are used to develop the marketing plan. From there
the individual action plans are created.
The Marketing Plan will allow the marketers to consider many avenues for promoting
their products or services. Some of these include:
• Basic advertising
• Online information
• Telephone promotions.
This interactive process requires input and feedback from stakeholders at various
points with assessments of impact made at every level and for every planned
implementation. The draft outcomes for each stage are also checked to assess impact
on earlier stages and planned results. Amendments are made if necessary.
To be most effective, the plan has to be formalised, usually in written form, as a formal
‘marketing plan’. The purpose is to move from general to specific, from the vision to
the mission, to the goals, to the corporate objectives of the organisation, and then
down to the individual action plans for each part of the marketing program. This is an
interactive process. The draft of each stage must be checked to see what impact it has
on the earlier stages, and amendments made.
The ‘corporate objectives’ are the main context for the marketing plan, the ‘corporate
mission’, provides the context for the corporate objectives. The marketing planning
function may also design incentive pay plans to motivate and reward frontline staff
fairly and align marketing activities with ‘corporate mission’.
a. Financial data:
The facts for this section will come from management accounting, costing, and
finance sections
b. Product data:
This information will come from production, research, and development
Next we need to consider the organisation’s current marketing plan, so that we can
establish the following points:
• Marketing objectives
• Marketing strategies
• Marketing budget
• Staffing levels
• Staff training
• Market share
• Financial targets.
As mentioned previously, there are a range of tools that can be used to assist in
determining where the organisation lies in regard to overall market position. In this
section we will look at a range of these tools.
This marketing audit can be a complex process, but it is essential to identify the existing
factors which will have a significant impact on the future plans of the organisation. It is
clear that the basic material to be input to the marketing audit should be comprehensive.
Accordingly, the best approach is to accumulate this material continuously, as and
when it becomes available; since this avoids the otherwise heavy workload involved in
collecting it as part of the regular, typically annual, planning process itself when time
is usually at a premium.
The next step is to conduct a situational analysis to review the marketing environment
to attempt to establish what environment the organisation is operating in - what a
business is facing and how an organisation can use this to their advantage.
PEST
Political factors
Economic Factors
Socio-cultural Factors
Technological Factors
The PEST analysis can be useful before SWOT analysis because PEST helps to
identify SWOT factors. PEST and SWOT are two different perspectives but can contain
common factors. SWOT stands for strengths, weaknesses, opportunities, and threats.
1. The internal environment e.g. staff (or internal customers), office technology,
wages, and finance, etc.
3.
T he macro-environment e.g. Political (and legal) forces, Economic forces,
Socio-cultural forces, and Technological forces. These are known as PEST
factors.
Political Factors
The political arena has a huge influence upon the regulation of businesses, and the
spending power of consumers and other businesses. You must consider issues such
as:
Economic Factors
Marketers need to consider the state of a trading economy in the short and long-terms.
This is especially true when planning for international marketing. You need to look at:
1. I nterest rates
3. L ong-term prospects for the economy, Gross Domestic Product (GDP) per
capita, and so on.
Socio-cultural Factors
The social and cultural influences on business vary from country to country. It is very
important that such factors are considered. Factors include:
1. D oes technology allow for products and services to be made more cheaply and
to a better standard of quality?
3. How is distribution changed by new technologies e.g. books via the Internet,
flight tickets, auctions, etc?
Political Economical
Ecological / environmental current Home economy
legislation
Economy trends
Future legislation
Overseas economies
International legislation
General taxation
Regulatory bodies and processes Taxation specific to product / services
Government policies Seasonality issues
Government term and change Market / trade cycles
Social Technological
Lifestyle trends Competing technology development
By using the PEST analysis we can analyse the many different factors in a firm’s
macro environment. In some cases particular issues may fit in to several categories. If
a factor can appear in several categories, managers simply make a decision of where
they think it best belongs.
Think carefully about which factors are most likely to change and which ones will
have the greatest impact on them. You need to clearly identify the factors in your
environment. To do this, rank or score the likelihood of a change occurring and also
rate the impact if it did. The higher the likelihood of a change occurring and the greater
the impact of any change, the more significant this factor will be to the firm’s planning.
It is also important when using the PEST analysis to consider the level at which it
is applied. When analysing huge organisations such as British Petroleum (BP) and
Thomas National Transport (TNT), it is important to remember that they have many
different parts to their overall business – they include many different divisions and
in some cases, many different brands. Considering the whole business when using
PEST is good in that it may highlight some important factors, but managers may want
to narrow it down to a particular part of the business (e.g. a specific division of BP);
this may be more useful because it will focus on the factors relevant to that part of the
business. They may also want to differentiate between factors which are very local,
others which are national, and those which are global.
SWOT
The SWOT analysis is very subjective and should always be focused upon a segment
of the market. This will enable you to ask “What are the ‘Critical Success Factors’
(CSFs) that are essential to the decision-making process of the buyer” in that segment?
Weight the CSFs so that you can separate those drivers that are most important.
Complete the strengths and weaknesses from the customer’s point-of-view including
their view in relation to the competition. This will allow you to match key CSFs to
opportunities. Then rank those opportunities that are most profitable or sustainable.
Finally factor in the impact of threats.
Once your SWOT is completed, dovetail it with the rest of your strategic thinking.
Some basic rules to remember:
• It should distinguish between where the organisation is today, and where it could
be in the future
• Always apply SWOT in relation to the competition i.e. are we better or worse than
the competition
• Keep the SWOT short and simple, avoid complexity and over analysis
• SWOT is subjective.
SWOT is a very popular tool with marketing teams. Questions that should be considered
in each area include:
Strengths Weaknesses
Price, value, and quality? Morale, commitment, and leadership?
Advantages of proposition?
Disadvantages of proposition?
Capabilities?
Gaps in capabilities?
Financial reserves and likely returns?
Lack of competitive strength?
Competitive advantages?
Own known vulnerabilities?
USPs (unique selling points)?
Continuity and supply chain robustness?
Marketing – reach, distribution, and
awareness? Effects on core activities and distraction?
Opportunities Threats
Industry or lifestyle trends? Political effects?
Market developments? Legislative effects?
Partnerships, agencies, and distribution?
Environmental effects?
Competitors’ vulnerabilities?
IT developments?
New markets, vertical and horizontal?
Competitor intentions – various?
Technology development and innovation?
Global influences? Market demand?
Strengths Weaknesses
Able to communicate well with people and
The city is very large and potential
provide exceptional customer service
customers are widespread
Able to provide an original and unusual range
Shortage of space for production and
with consistent high quality
storage of stock
Owner / operator has completed National
No experience in producing large
Certificate Level 3 in Business Management
batches of cooking.
and conducted indepth market research
the public and also to see emerging trends Across the board, gluten-free products
first hand are more expensive in general, than
Large number of potential raw material products made with standard flour
Market research indicates that there is a trend was found that products sold in stores
towards home made cakes with less salt, sugar, are more expensive than those same
There is no other supplier in Brisbane who sells wholesalers providing this proposed
Once key issues have been identified with your SWOT analysis, they feed into
marketing objectives.
1. Competitive rivalry
2. Power of suppliers
3. Power of buyers
4. Threats of substitutes
5. Threat of new entrants.
These are the key factors that influence industry performance, hence it is common
sense and practical to find out about these factors before you enter the industry. We
will discuss each of these:
• It is costly to leave the industry hence they fight to just stay in (exit barriers).
Power of suppliers: Suppliers are also essential for the success of an organisation.
Raw materials are needed to complete the finish product of the organisation. Suppliers
do have power. This power comes from:
• If they are the only supplier or one of a few suppliers who supply that particular
raw material
• If it is costly for the organisation to move from one supplier to another (known
also as switching costs)
Power of buyers: Buyers or customers can exert influence and control over an industry
in certain circumstances. This happens when:
• There is little differentiation over the product and substitutes can be found easily
Threat of substitutes: Are there alternative products that customers can purchase
over your product that offer the same benefit for the same, or less price? The threat
of substitutes is high when:
Threat of new entrant: The threat of a new organisation entering the industry is high
when it is easy for an organisation to enter the industry i.e. entry barriers are low.
An organisation will look at how loyal customers are to existing products, how quickly
they can achieve economy of scales, would they have access to suppliers, and would
government legislation prevent them or encourage them to enter the industry.
Strategy consultants occasionally use Porter’s Five Forces Model when making a
qualitative evaluation of an organisation’s strategic position. However, for most
marketers, the framework is only a starting point or ‘checklist’.
The second step is to conduct a detailed review of the marketing activity and system
to date.
Marketing audits generally work best when they are based on tools that allow you to
gather the right level of information. By conducting a marketing audit you are attempting
to make clear the opportunities and threats faced by an organisation and using this
information you will try to make alterations to the plan based on the information from
the audit tools. We will also consider the part the marketing environment plays.
Each market or geographical area will require its own concentration. The plans for
each will be based on customer needs and the strategies that were chosen to meet
those needs. The details will clearly state the programs and individual activities that
will take place over the period of the marketing plan, usually a year.
The marketing activities must meet a need from the marketing plan. These could
include but are not limited to:
Identify the need so that you can produce the right strategy to meet the objectives
set around that need. Marketing activities are diverse, and must be appropriate to the
product or service, and the image of the organisation. Some include:
• Basic advertising
• Online information
• Telephone promotions.
Identify Outcomes
Once situational analyses and a market audit have been completed, their results
will be useful in determining objectives. The objectives that you set are aimed at
attempting to answer the question – “Where is it that we are trying to go with our
marketing? What ‘need’ are we trying to meet?” The purposes of objectives include:
When setting your marketing objectives, ensure that they are SMART. That is:
These objectives can then form the basis of any performance review. Once your
performance is measured, you can compare the results against your objectives in
order to determine where improvement is needed.
The evaluation process does not only take place at the end of the marketing plan. If
evaluation is completed only at the conclusion of the activities, it is essentially too
late to see whether things actually went well. It also means that you are likely to be
missing a lot of opportunities to change for the better. SMART objectives allow you to
monitor your plan fully.
All of the activities must be specified and quantified. That is, there must be measurements
in place to ensure that the activity is meeting the objectives as intended. It is these
activities and this plan that will make up the marketing plans for the organisation for
the coming period. The outcomes may include, but are not limited to:
• Projections for:
• Clear
• Quantified
• Focused
• Realistic
• Agreed
• Implementers must be committed and agree that the objectives are achievable.
The plans then become a working document to guide the campaigns taking place
throughout the organisation over the period of the plan. If the marketing plan is to
work, every exception to it (throughout the year) must be questioned; and the lessons
learnt, to be incorporated in the next year’s plan.
Executive Summary
Bounce Fitness will serve the corporations in the city centres of Brisbane, Sydney and Melbourne,
helping them to become more productive, while lowering their overall costs with innovative wellness
programs and strategies.
2. It costs less to prevent injuries or illnesses than to treat them after they occur.
Traditional endeavours to corporate health care are quite reactive. Corporations wait until after staff
have been ill or injured, and then pay for the necessary treatments. The Bounce Fitness approach,
emphasises prevention and good health promotion, and is much more proactive. At Bounce Fitness, we
tie worker productivity directly to the health care issue. We believe that traditional approaches to the
current health care crisis are misdirected.
Bounce Fitness contends that by helping employees change their behaviour patterns and choose
healthier lifestyles, the health care costs to corporations will be considerably reduced through increased
staff productivity, reduced absenteeism and turnover, reduced worker’s compensation claims and a
healthier, more motivated staff.
Current economic and demographic changes will make health care issues worse. The environmental
factors and the local competitive situation is a clear message to Bounce Fitness. The time is right for a
Bounce Fitness initiative.
Situation Analysis
Bounce Fitness began in 2001 in Cairns, Queensland. The business model has been well received and
resulted in expansion to Brisbane, Sydney and Melbourne. Marketing is very important to maintain
growth and market penetration. In addition to offering fitness facilities for corporations, Bounce Fitness’
main activity is the creation and implementation of wellness programs. The basic market need is the
reduction of corporate costs and the increase in employee efficiency that can be achieved through long-
term wellness programs.
Market Summary
Bounce Fitness possesses good information about the market and knows a great deal about the common
attributes of the prized and loyal customers. This information will be leveraged to better understand who
is served, their specific needs, and how Bounce Fitness can better communicate with them.
Target Markets
Corporate Employees
Regular Clients
Other
Market Analysis
Market Demographics
The profile for Bounce Fitness’ customers consists of the following geographic, demographic, and
behavioural factors:
Geographic
The immediate geographic targets are the cities of Brisbane, Sydney and Melbourne.
Demographic
51% male : 49% female
Of the corporate customers, 83% have completed some undergraduate study, 16% have
undertaken post graduate study.
Behavioural
The target population recognise the need to have physical activity in their lives
They have incorporated some form of exercise program in their daily / weekly routine for the
last several years
They are happy to make use of fringe benefits that are offered by their employer as part of their
compensation package.
Market Needs
Bounce Fitness is providing their customers with a health care cost management program for employees
that will increase employee productivity and decrease overall business costs. Bounce Fitness seeks to
fulfil the following benefits that are important to their customers:
Customisation: Bounce Fitness will offer a totally customised solution for each company as well
as each employee within the company.
Convenience: Clients will not use the service if it is not convenient. Bounce Fitness recognises
this and strives to make their services as convenient as possible for the targeted client groups.
Result-oriented strategy: Bounce Fitness will need to improve a company’s bottom line in
order to attract and maintain customers. While Bounce Fitness will strive to address all of their
clients’ needs, the reality is that they must indeed provide significant value for the companies
themselves in order to grow their market share.
Market Trends
There are two significant market trends in the last five years.
Increased use of fitness facilities on behalf of individuals. Exercising and ‘working out’ has become
a more mainstream activity in Australians’ lives over the last decade. Five to ten years ago there
were widespread reports about an impending health crisis - obesity. Australians, relative to their
Western counterparts have higher incidents of obesity. To a large degree, this is correlated to
Australia’s unhealthy diet of fast food, and generally poor food choices, especially fried foods.
The poor diet is not the only factor however. Australians were fairly inactive, with only 19% of
people aged 20-40 exercising three times a week. Luckily, that has changed over the last 10
years. The percentage of active people has increased to 43% since 2002. More and more people
are going to the gym after work or are incorporating some sort of outdoor activity into their daily
routine.
The incorporation of fitness memberships within the ‘basket of benefits,’ are now a part of the
total compensation package. As fitness memberships have become a more common element
in the working Australia’s lives, companies have come to incorporate membership as part of
their benefit package for employees. This has occurred for at least two reasons. One reason is a
flexible method to compensate employees. The second reason is that it has a positive effect on a
company’s bottom line. Study after study supports the contention that a physically fit employee
is happier, healthier, and more productive. For no other reason, offering fitness club memberships
to employees is a smart cost-benefit decision.
Market Forecast
35,000
30,000
25,000
Other
10,000
5,000
0
2003 2004 2005 2006 2007
Market Growth
Important demographic changes are taking place in Australia that point to the importance of worker
productivity in coming decades.
16 million new jobs will be created by the year 201X, but there will only be 14 million workers to
fill them.
In 2000, women comprised one-third of the work force, a ratio that increased to one-half by 201X.
An estimated 80 per cent of jobs to be filled in the immediate future will require more than a high-
school education. Only 74 per cent of Australians, however, finish high school, and only 67 per
cent graduate with adequate skills.
The number of skilled workers available to fill new jobs is decreasing, meaning that employers are
facing more severe competition for labour. Thus, the health and productivity of each employee
becomes crucial to a company’s success.
The following quantitative information has supported explosive growth in the health wellness program
industry. The last five years has seen a 9% growth rate and the next five years is expected to achieve
a 7% growth rate.
40.00%
30.00%
20.00%
10.00%
0.00%
Corporate Regular Other
Employees Clients
SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the company, and
describes the opportunities and threats facing Bounce Fitness.
Strengths
Results-oriented approach to attracting and maintaining customers
Weaknesses
High costs associated with customised, personal service
Opportunities
Potential to expand within a growing market
A large increase in clients if a single corporate company takes up the Bounce FItness’ program
The ability to leverage future quantitive analysis that supports the contention that long-term
wellness programs have a significant, positive impact on the company’s bottom line.
Threats
Lack of immunity to an economic downturn
A change in society where the individual begins to take far more responsibility for his/her health
maintenance.
Competition
The three main competitors for Bounce Fitness are:
Community fitness programs and school facilities which appeal to lower-income families and/
or students who want accessibility and affordability from fitness facilities
Forever Fit Gym services which targets motivated and dedicated individuals who workout five
to seven times per week
Better Bodies which focus on for casual fitness-seekers who do not work out with a high
intensity but still desire the status and recognition of belonging to a fitness centre.
Service Offering
Bounce Fitness provides wellness strategies / programs for businesses in the main business centre of
the cities. A wellness strategy is a long-term effort, combining both health-promotion and exercise-
related activities designed to facilitate positive lifestyle changes in members of a company’s work force.
Bounce Fitness will work with a company’s senior management to help it develop a mission statement
for its wellness program. The client company’s employees will undergo a health-risk analysis, following
which each employee will be given the opportunity to meet with a health professional to design a
personalised health program.
Finally, Bounce Fitness will provide employee progress reports to senior management with which to
carry out the incentive program and generally monitor changes in the behaviour of its workforce.
Keys to Success
Corporate Fitness’s keys to success are:
Raising productivity
Critical Issues
Bounce Fitness faces several critical issues. It needs to:
Sign up a sufficient number of medium-sized companies. It is more cost effective for them to
service a couple of medium-sized companies than many small companies.
Marketing Strategy
Bounce Fitness will begin by targeting small to medium-sized businesses in the CBDs of Brisbane,
Sydney and Melbourne. The first task is to convince senior executives of the benefits and needs of
wellness programs. This will be accomplished by aggressively pursuing interaction and relationships
with business professionals who would profit from using this service. Once a strong image is established,
Bounce Fitness will use similar strategies to market its services to larger corporations in the CBDs of
Brisbane, Sydney and Melbourne and then investigate other areas of expansion.
Mission
The Centres will serve the community with quality, comprehensive, unique, and distinctive health
programs and services. Staff will expand the preventive services offered while improving the quality
of life among participants through health and fitness services using state of the art equipment and
practices. These programs will reflect members’ needs and be financially viable for all stakeholders.
Marketing KPIs
1. Generate a 10% yearly increase in sales
3. Continue to cultivate Bounce Fitness’ image as the premier long-term wellness program
provider.
Financial Objectives
1. Decrease customer acquisition costs by 4% every two quarters
Target Markets
The market for Bounce Fitness is not particularly segmented. Potential customers include all CBD
businesses that offer their employees some type of medical benefits, are experiencing escalating health
care costs, and wish to more effectively manage those costs.
Corporate Fitness, however, segments its services for individual organisations. Bounce Fitness works
with senior management to develop mission statements and provide incentive plans, and with employees
to design personalised health and fitness programs.
Positioning
Bounce Fitness will position themselves as the most effective wellness strategy and program developer.
This positioning will be supported by statistics indicating an increase in worker productivity and a
decrease in business operation expenses from the implementation of corporate wellness programs.
Strategy Pyramids
The single objective is to position Bounce Fitness as the most proficient wellness program provider in
the Brisbane, Sydney and Melbourne CBD areas. The marketing strategy will seek to develop customer
awareness regarding the services offered, develop the customer base, and work towards building
customer loyalty.
The message that Bounce Fitness seeks to communicate is that they can have a dramatic effect on the
bottom line. This message will be communicated through various methods. The first method will be the
production and disbursement of printed materials. The printed materials will describe all of the services
offered and will give prospective customers some insight into Bounce Fitness’ past successes.
Bounce Fitness will also rely on presentations to company’s HR departments. These presentations will
allow Bounce Fitness to personally address any concerns or ‘pains’ that companies have and indicate
how a wellness program / strategy can help service their needs.
Bounce Fitness will also rely on advertisements popular in business magazines for sale in Brisbane,
Sydney and Melbourne to increase visibility and interest in Bounce Fitness’ services among companies
based in those cities. Lastly, Bounce Fitness will use its website as a way to disseminate information.
Marketing Mix
Corporate Fitness’s marketing mix is comprised of the following approaches to pricing, distribution,
advertising and promotion, and customer service.
Pricing: Prices for using Corporate Fitness’s services are comparable to those of higher-end
fitness centres. An employee choosing to utilise a Bounce Fitness centre will pay a $100 monthly
fee. For each employee enrolled in the general wellness program, regardless of whether or not
they use the fitness facility, the employer will pay $150 annually. The prices reflect the quality
of the equipment and service.
Distribution: This will occur both at the company’s worksite as well as at Bounce Fitness’s
facilities.
Customer Service: Bounce Fitness will operate on the principle that it is imperative to achieve
total customer satisfaction if the business is going to succeed.
Marketing Research
Two types of market research were used when Bounce Fitness was collecting market data. The first
type of research was focus groups. The focus groups were collections of seven to nine people who
were asked a series of predetermined questions with the responses recorded and discussed among
the group members. In addition to the pre-established questions, there was a free-flow discussion
format toward the end of the focus group that provided flexibility in allowing the participants to share
information and insights with Bounce Fitness.
Additionally, questionnaires were used to collect market information from prospective corporate
customers. The questionnaires were submitted to a total of 100 HR professionals. The response rate
was 43%, higher than expected. The validity and usefulness of the questionnaire was ensured by
employing a graduate statistics student to develop the questionnaire. Overall, both forms of primary
market research were helpful in providing insightful information. This research confirmed many already
held assumptions as well as introduced several valuable perspectives that Bounce Fitness had not
considered.
Financials
This section provides a financial overview of Bounce Fitness as it relates to the marketing activities.
Bounce Fitness will address break-even analysis, sales forecasts, expense forecasts, and how they link
to the marketing strategy.
Break-even Analysis
The break-even analysis indicates that $16,667 will be needed to reach the break-even point.
Expense Forecast
The expenses forecast will be used as a tool to keep Bounce Fitness on target, and provide indicators
when modification or corrections are needed for the implementation and maintenance of the market
plan.
The marketing expenses will be highest during the first year of expansion, when there is likely to be
increased usage of fitness facilities. The expenses will settle a bit during the second and third year.
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Pamphlet Production
Other
11
Controls
The purpose of Bounce Fitness’ marketing plan is to serve as a guide for the organisation. The following
areas will be monitored to gauge performance:
Customer satisfaction
Implementation
The following milestones identify the key marketing plan programs. It is important to accomplish each
one on time and on budget.
12
Marketing Organisation
General Manager will share responsibility for the marketing activities with Centre Managers’ where
appropriate.
Contingency Planning
13
Notes
You are encouraged to discuss your answers with others in your group, or with your
Trainer.
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• The positioning and market mix for each target segment must be
identified
Q Marketing is selling.
Marketing strategies work to show the linkage between your marketing tactics and
the overall direction the business wants to achieve. Examples of marketing strategies
could be:
• Expand distribution
• Increase sales
• Increase profits
The information that was collected for the marketing plan must be thoroughly analysed
to be able to realise the marketing strategies and objectives. Analysis may include,
but is not limited to:
Once the analysis is completed, marketing objectives can be set. These are the
specific targets for the marketing activities to achieve and contribute to the corporate
objectives.
• Increase sales by 8%
• Launch a new product that satisfies a specific need in the market by the end of
the year
• Increase the number of retail outlets selling our products by 250 within twelve
months
• Achieve brand recognition among 90% of the general population within three
years.
Marketing objectives allow managers to have targets to work towards. Managers can
measure more effectively whether the marketing strategies are actually working or
whether there are problems with the way things are being done.
Once the specific objectives for the organisation have been established, work activity
plans can be developed.
Monitoring and Evaluation (M&E) Work Plans are the steps used to record the activities
of a project, provide answers to evaluation queries, and demonstrate progress or
lack of. The goals and objectives of the plan are explained by the plan. An M&E
is developed at the design stage and requires the involvement of stakeholders to
develop a truly integrated plan.
The evaluation is planned in this document along with how stakeholders will be
informed of results. These plans will guide the design of monitoring and evaluation,
highlight what information remains to be collected how best to collect it, and suggest
how to use the results to achieve greater effectiveness and efficiency.
The facilitator and staff build the necessary teams. The facilitator needs to communicate
in exact terms the methods and expected results of the activity. The team should
construct an overall plan detailing the entire activity structure and the role of each
individual. Because activities focus on results, it is also important to maintain clarity
about the performance expectations of each activity.
Operating and financial performance reporting must be synchronised with the same
reporting periods and reporting frequency. Reporting periods and frequency must be
consistent with the time phasing of the marketing plan baseline. The financial plans
are required to ensure resource availability.
Plans for other required resources and timelines must also be developed and included
in the work plans.
Gaining Approval
Once your plans are in place, it is time to have them approved. This approval will
be decided by the organisation – using the standard procedures. The individuals
receiving the reports and involved in the decision-making may include:
• Coordinators
• Owners
• Managers
• Section Leaders
• Supervisors
• Team Leaders.
“Feedback is
the breakfast of
champions.”
Ken Blanchard
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Q The team identifies and contracts with each other to implement the
activities.
ELEMENT 3:
Implement Marketing
Activities
Determining Resources
This is related to implementing marketing tactics related to the marketing mix. The
marketing mix is a series of marketing processes that when combined cover the gamut
of marketing functions in an organisation. Those elements are defined as product,
prices, promotion, place, packaging, positioning, and people. Combined they are
known as ‘Seven P Formula’ (7P).
“A gem
is not
Marketing implementation involves determining how those 7Ps will be utilised to
actually allow the organisation to reach its overall goals and objectives. The process
polished
begins by actually identifying the marketing mix actions to be taken.
without
rubbing,
In order for an implementation plan to be developed, a marketing manager needs
to clearly identify what actions are to be undertaken, as well as identify the people
nor necessary
responsible, resources a manand the budget to be applied to the specific actions,
perfected
as well as a timetable for implementation. Let’s now look at each of the elements of
without
the marketing mix, as well as some of the strategies and actions associated with each.
trials.”
Product Strategies
Chinese
Any new product needs Proverb
to be carefully evaluated. In order to do this, organisations
generally think about the following questions:
As you can see, these basic questions allow us to determine exactly where a given
product sits within the market place and why the market wants the product. Based on
the answers to these questions, strategies can be developed to improve or alter the
product offering to better meet the needs of the market.
When thinking about product strategies, it is important to remember that the product
that a customer actually buys is really broken down into three distinct levels of product.
These levels are:
• Core Product
That is the benefit that using the product offers to the customer using that
product. A video camera offers a means of recording our memory of events that
have occurred.
• Actual Product
This second level of product looks at branding, adding features to the product
to increase the chances that the target market will buy the product and offering
benefits that differ from the offerings of your key competitors.
• Augmented Product
At this level, you are looking at other aspects of the product that add value to
your core product. The service available to customers after purchase (such as
technical support) and warranties are two good examples of augmented products.
As you can see, depending on the type of strategy that you feel is needed, the
product offering should be changed. Differentiation strategies in particular can be
implemented through adding new models with new features. Cost leadership can be
achieved through improved product design and improved manufacturing techniques.
Prices
The pricing of products and services must be examined and re-examined on a regular
and consistent basis to ensure that the products and services are still appropriate to
the current market. Prices may need to be lowered or raised. The current trading terms
or conditions of sales may need to be changed. Some of the products or services may
be ‘value-added’ by combining them. The addition of ‘free’ items may also make your
offerings more attractive to customers.
Pricing your product is critical to the decision, whether the product will actually be
purchased. There are a plethora of pricing strategies, and we will list some of the
major ones that you may like to consider here.
Penetration pricing
Penetration pricing is a technique whereby a company brings its purchase price down
as low as possible in order for it to enter the marketplace. Penetration pricing is used
to gain market share and then once achieved the organisation may raise its price.
An example of its use was when laundry detergent manufacturers introduced new ‘2
Times Effective’ formulas (half the product, but twice as effective). This was heavily
discounted to get the public to try it, and once introduced, the product was bought to
its original price.
Premium pricing
Premium pricing is, in essence, the opposite of penetration pricing. It involves setting
a price higher than it would otherwise be. It is used in products where the offering
is considered unique and there is little competition. French champagne is generally
priced using premium pricing.
Skim pricing
Economy pricing
Here you are setting an economy price by keeping the cost low and the price reflects
this. The price is not artificially lowered, as in penetration pricing. This type of pricing
is often used by supermarkets in their ‘Home Brands’ where the quality is often not as
high as the premium brands and the packaging is kept to a minimum all in an attempt
to produce a product that essentially can be priced as low as possible.
While these four methods represent the key pricing strategies, within the area of
pricing, there are also a number of other approaches that can be taken. These include:
Psychological pricing
Captive pricing
All men are familiar with this one; you buy a razor and it seems incredibly cheap - maybe
$10 for the razor and a couple of blades. It isn’t until you have to buy replacement
blades that you realise that an additional 4 is going to cost you another $12. Captive
pricing allows you to increase the price of required product purchases because you
know that people have to buy them.
If you offer a range of products, you could offer a package for less. Think for example
of purchasing Pay TV, a basic package may be $40 a month, with movies offered for an
additional $8 and sport for $8. Combined they would come to $56 a month. However
you may offer a complete package for $52 to encourage a complete purchase.
Here, organisations break up their product offering to sell optional products separately.
This is becoming increasingly common on airlines. Take JetStar, at the time of writing,
if you are travelling on their cheapest fare level, you will need to pay an additional
fee for checked luggage. This is, however completely optional. Virgin Blue offer better
legroom for $25, travel insurance, and even the ability to pay a carbon neutral fee.
These are not required, but are broken out of the core fee to enable it to appear
cheaper.
Promotional pricing
Here you are creating pricing levels that are used to encourage individuals into the
store to buy NOW. Limited time offers are excellent at ensuring the organisation is
earning money on a regular basis.
Promotion Strategies
We now have a product that meets the need of the end user, however, without the
end user actually knowing about the product, very little is likely to be achieved. This is
where promotion comes into play. The key tactics that can be adopted when dealing
with promotion include:
Advertising
This is best done using the organisation’s marketing mix and looking at it in terms
of the 7Ps. The 7P formula is used to continually evaluate and re-evaluate business
activities. Products, markets, customers, and needs change rapidly, so the situations
surrounding them and their use must be revisited to ensure that the maximum results
are being achieved in.
Public relations
This is developing positive relationships with the public. This relationship is quite
broadly defined, but often comes about through receiving favourable publicity in the
media. Getting good stories about your organisation into the local press is excellent
public relations. Another very important aspect of the role of public relations is in
handling negative publicity. How do you deal with bad attention being given to the
brand or a crisis occurring such as a death involving your product or injury, or a
product recall? These aspects of promotion require careful use of public relations
techniques.
Sales promotion
Personal selling
One of the least managed forms of promotion is personal selling. While it is not
appropriate for all products, personal selling for large purchases is essential. Ensuring
all staff are trained in product attributes and are familiar with benefits and advantages
of your products are critical.
Direct mail
Place
Place refers to distribution – the act of attempting to get your products to the right
place for your consumers and customers to purchase. There are two major types of
distribution channels:
The precise place where the customer and the salesperson first interact is the ‘place’
and is of great importance in the ‘big’ picture. Review and reflect on this because
sometimes a change in place can lead to a rapid increase in sales.
• Direct selling
• Telemarketing catalogues
• Mail order
• Trade shows
• Retail establishments
• Manufacturers’ representatives
• Distributors.
Many organisations use a combination of one or more of these methods. The choice
made about the location is essential buying information. Ask where else you could
offer your products and services.
“Business has
only two functions
- marketing and
innovation.”
Milan Kundera
Packaging
Packaging is the way the product or service appears from the outside to the customer
and includes the dress and grooming of those selling the product or delivering the
service. The shops or stores, offices, waiting rooms, brochures, correspondence, and
every single visual element about the company is included in the packaging.
You must look regularly at every visual element in the packaging of the product or
service through the eyes of a critical prospect. The first impression of the product
is made within the first thirty seconds of seeing it. Even tiny improvements in the
packaging or external appearance of the product or service can often lead to completely
different reactions from your customers.
Positioning
What do people think and say about the organisation, product, or services when they
are not around any of them? What position does the organisation, product, or service
have in the market, in terms of the specific words people use when they describe the
offerings of your organisation to others?
Be aware of how you could improve your positioning. Know where the organisation
wants to be and the impression it wants to make. What changes need to be made in
the interaction with customers today in order to be seen as the very best choice for
your customers of tomorrow?
People
To be successful you must attract and put the right person into the right position. Many
of the best business plans ever developed sit on shelves today because the people
who created them could not find the key people who could execute those plans.
Think often of exactly who is going to carry out each task and responsibility in terms of
the people inside and outside of the business who are responsible for every element
of the sales and marketing.
• Where each action will take place (in house or via other agencies)
• When it needs to occur and how the action will actually be implemented.
3. Budgets
Identify the budget available for the plan as well as how you plan to spend it,
and how you will ensure budgets are kept within required levels.
4. Personnel
Who are the key stakeholders and personnel involved in the implementation?
Ensure you are fully aware of any reporting relationships and how you and other
staff fit within the framework. Who are you responsible to? Define who will be
involved in the implementation and what skills they need in order to complete
the implementation.
Take all this information and put it together into a written plan that can be used to
guide your implementation. The implementation plan includes:
• Strategy – Here is where you need to describe in detail each of your marketing
strategies – such as who the target market is and each of the marketing mix
decisions.
• Resource Plan – This should identify the resource that you require in order to
implement the plan and marketing program.
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Q Direct sales can come at a price; you will need storage facilities or retail
premises to sell your products directly.
ELEMENT 4:
Review Marketing
Activities
There are a range of types of marketing control that may be done when implementing
a marketing control system. These include (but are not limited to):
• Sales Results
The simplest measure of performance is sales results. Here you are simply
attempting to measure the level of sales the organisation has and looking for
trends in the sales. This can be matched to the marketing timetable to assess
whether the marketing plan seems to be increasing overall sales.
• Market Share:
This represents the percentage of total sales in the market that an organisation
has. Often, you will find that a key marketing objective for any organisation
is ‘increase market share’. Measuring market share is generally achieved by
determining the sales of all your competition and then looking at what your
proportion of total sales is. This is often easier said than done when it comes to
measuring share in small business.
This is particularly important when comparing the result from year to year with
regard to marketing expenditure. You should see a positive correlation between
marketing expenditure and sales. If you do not, questions need to be asked about
where the marketing expenditure is going.
• Financial Performance
Have a broad look at how well the business is performing financially. This may
include a ratio analysis of the performance of the business to look at broad trends
with regard to how the business is performing and where problems lie.
These broad measures are most useful in attempting to evaluate and ascertain where
the business sits in terms of its overall performance. It is useful in controlling marketing
in that it allows you to identify issues that may be causing changes in market share
and sales - both of which are often set as key marketing objectives.
Profitability Measures
Profitability measures are used to determine whether marketing tactics and plans
have worked in increasing the level of profitability in the business. This should be
particularly evident if the cost leadership strategy has been implemented. In the case
of profitability, look at measures such as:
What the profit is like after cost of goods and after all expenses and comparing
this year-on-year.
• Contribution Margin
This is the fraction of sales that contributes towards offsetting the fixed costs of
the business.
This shows whether the return being achieved is sufficient to ensure the viability
of the organisation as a whole.
As well as these measures, look at measuring monthly and/or annual profit and loss
results for individual products to assess how well these individual products or product
lines are performing.
Productivity
These types of control are used to assess how well the promotions are working,
whether the sales force is effective in increasing overall sales, and whether the
distribution channels are working. These measures and controls are generally set by
putting productivity standards in place. Examples may include:
• Standards on how quickly a product should travel through the distribution chain
• Sales goals
Performance
Like all business systems, the implementation control system is best developed
following a specific series of steps. The major steps in the process are:
1. Examine the various objectives that you have set in the marketing plan.
2. Take each of the objectives and attempt to determine standards that can be
used to measure the progress that is being made toward each of the given
objectives.
3. Measure actual performance based on the standards that you have set and then
compare it to the desired standard - look for any gaps that exist between actual
and desired performance.
4. Where necessary, undertake any further research needed to address the needs
of the control process.
5. Examine whether there have been any significant changes to the market place
that need addressing.
The control system for attempting to manage how well the system is operating in
terms of its implementation is now functional. A system is now needed to evaluate the
system as a whole. In this section we will address the major ways of gaining feedback
on marketing efforts as well as examining the methods used to evaluate and improve
marketing plans.
Getting Feedback
Feedback is used to assess how satisfied customers are with the marketing and
products and services that are provided. Basically, it reviews each aspect of your
marketing against customer, client, or staff expectations. The good thing about
feedback is that it allows you to gain a first-hand appreciation about what your target
market are thinking; how they perceive you; and what they like and dislike about your
marketing efforts.
Evaluation Methods
Once you have gained useful feedback, it is time to look at evaluating that feedback.
There are four methods that are often used in the evaluation process. These are:
• Top-Down
• Bottom-Up
The second evaluation method is bottom-up. In this method, feedback from your
customers is sought. They know the marketing well because they actually are
being targeted by it. This means that they are in a position to know what is
working and what is not from a unique viewpoint.
• Interactive Approach
Making Improvements
• Identify those areas where improvements can be made (as mentioned above, this
is to do with having a control system in place)
• Look at any significant issues in the environment that may impact on marketing
performance
• Communicate these to staff, as mentioned above to ensure that all staff are
aware of what needs to be done.
Notes
Q Asking for feedback from staff can help increase their commitment to the
job.
A good marketing plan is a like a blueprint for action that will enable your organisation
to perform a number of highly critical functions. Writing your marketing plan can help
you identify the most cost-effective strategies you can use to present your business
to your target audience.
However, any plan is useless, unless it has a solid series of marketing tactics and
activities that will run underneath the overall plan. It is these activities that will put your
plan into action. In this manual we have looked at the 7Ps. Each of these activities
should be developed with the strategies in mind that you are working towards.
You then move on to examining the way the plan was implemented and look for any
improvements that can be made. This evaluation process is critical to the overall
success of your marketing.
These are some books that we feel may be of assistance to you in completing the
Assessment for this unit of competency. Your local library may hold these publications.
Abell, DF, Defining the Business: The Starting Point of Strategic Planning, Englewood Cliffs, NJ: Prentice-Hall, 1980
Quinn, JB, Strategies for Change: Logical Incrementalism, Richard D. Irwin, 1980
Baker, M, The Strategic Marketing Plan Audit 2008, Cambridge Strategy Publications, 2008
Simon, HA, Rational Decision Making in Business Organisations, ‘American Economic Review’ 1964