Marketing tools

How to write a marketing report The Kiss management strategies The marketing mix PESTEL analysis Marketing control Direct Marketing mix SWO T analysis Perceptual Map Two-way communications model 0. Product life cycle(s) 1. Ansoffs matrix 2. Boston Consulting group 3. The leaky bucket 4. Porters’ 5 forces 5. The environment and factors of change 6. Independent & Dependent variables

7. The consumer buying- decision making process and its influencing factors 8. The family as a decision-making unit

How to write a marketing report
Title page: Contains, for example, report title; client; research company; date, references Contents: Shows clearly the structure and content of the report and where in the report to find it. Preface: Sets the background to the report defining the marketing problem; summarises the researchers’ interpretation of the original brief. Executive Summary: Summarises the main points of the report, including conclusions and recommendations. Research methods: Explains how the research was done and why, with respect to te objectives of the research. Findings: Present and collates the data collected. Conclusions: Interprets the data: draws out the key points Recommendations: Identifies action and priorities arising from the conclusions and examines their implications. Appendices: Contain the fine detail that is not needed for the main body of the report or that would clutter up the report too much, e.g. a copy of the questionnaire, raw data, primary and secondary sources.

Report writing and presentation Crouch suggests that the key elements in a research report are as follows. 1. Title page 2. List of contents 3. Preface-outline of agreed brief, statement of objectives, scope and methods of research 4. Summary of conclusions and recommendations 5. Previous related research: how previous research has had a bearing on this research. 6. Research method 7. Research findings 8. Conclusions 9. Appendices

Keep It Simple & Straight (for a banker) Keep It Simple & Sexy (appealing for investors) Keep It Sugar Sweet (maintain interest with facts) .

When marketing their products. firms need to create a successful mix of: • • • • The right product Sold at the right price In the right place Using the most suitable promotion PLACE PRICE PROMOTION PRODUCT .

Marketing Mix PRODUCT Extensions Quality Design Features Brand name Packaging Sizes Warranties Returns PLACE Channels Coverage Assortme nt Locations Inventory Transport PRICE List price Discounts Allowances Payment period Credit terms PROMOTION Sales promotion Advertising Sales force Public Relations Direct Marketing .

Marketing Mix (wider elements) PEOPLE PARTNERSHIPS PRODUCT PROMOTION PROCESSES PLACE PHYSICAL EVIDENCE PRICE .

Legal Environmental Political Economical Social Technological Competition Uncontrollable constraints .

domestic satellite system with 2 earth stations international: submarine cables to India. cargo 119.) Telephones: main lines in use: 4.438 to 3. liquified gas 19. FM 31 (plus 13 repeater stations).2 Intelsat (1 Indian Ocean and 1 Pacific Ocean) Radio broadcast stations: AM 56. Tamil. Hakka.523 m: 6 under 914 m: 6 (1999 est.17 million (1998) Telephone system: international service good domestic: good intercity service provided on Peninsular Malaysia mainly by microwave radio relay. note . Daoism.4 million (1998) Telephones . shortwave 5 (1999) Radios: 9. passenger 2. livestock carrier 1. Shamanism is practiced in East Malaysia Languages: Bahasa Melayu (official).6 million (1997) Internet Service Providers (ISPs): 8 (1999) Merchant marine: total: 361 ships (1.706 GRT/7. Chinese dialects (Cantonese. Chinese 26%.1 million (1997) Television broadcast stations: 27 (plus 15 high-power repeaters) (1999) Televisions: 3.mobile cellular: 2. the largest of which are Iban and Kadazan Literacy: definition: age 15 and over can read and write total population: 83. petroleum tanker 57.000. refrigerated cargo 1. Hinduism.915 DWT ships by type: bulk 61.) Airports: 115 (1999 est. others 9% Religions: Islam.• • • • • • Ethnic groups: Malay and other indigenous 58%. English. Telugu. Indian 7%. and Singapore.) . specialized tanker 1.393.1% (1995 est.524 to 2.1% female: 78. vehicle carrier 5 (1999 est. Thai. Hokkien. Panjabi. note . in East Malaysia several indigenous languages are spoken. Hong Kong. chemical tanker 34. Christianity.047 m: 5 2. Hainan. Malayalam. Foochow).5% male: 89. Sikhism.in addition. container 55.047 m: 4 1.in addition.437 m: 11 914 to 1. Buddhism.) Airports . satellite earth stations . roll-on/roll-off 6. Mandarin.with paved runways: total: 32 over 3. adequate intercity microwave radio relay network between Sabah and Sarawak via Brunei.000 GRT or over) totaling 5.

Indian.Malaysia . Sabah. and Malaysian • Variety of religions • Low rates of literacy among women • Technological • Good national and international lines • A variety of TV and radio stations • ISPs and airports available .PEST Analysis • Political Factors • Controls on immigration • A fairly new country formed in 1957 (Malaysia) and 1963 (Malay. Sarawak. and Singapore) • Parliament and hereditary rulers • Economic Factors • Recovering from a very severe recession • High government spending • Very low inflation and unemployment • Favorable prediction for growth in the economy • Lack of corporate reform (high corporate debt and competition) • Socio-cultural Factors • Mixture of Chinese.Answer .

Sarawak . While Malaysia's immediate economic horizon looks bright. Sabah and Sarawak retain certain constitutional prerogatives (e. has made possible the relaxation of most of the capital controls imposed by the government in 1998 to counter the impact of the Asian financial crisis. and Singapore) formed 9 July 1963 (Singapore left the federation on 9 August 1965). predicting GDP to grow another 5% to 6%. • Government type: constitutional monarchy note: Malaya (what is now Peninsular Malaysia) formed 31 August 1957.overview: Malaysia made a quick economic recovery in 1999 from its worst recession since independence in 1957. where governors are appointed by the Malaysian Government. particularly those dealing with competitiveness and high corporate debt. Sabah . defense. and Sarawak. Sabah. and other powers delegated to federal government.holds 20 seats in House of Representatives. responding to a dynamic export sector. Sabah.gov/ October 2000 Consider the following information and conduct a PEST analysis.PEST Analysis – Exercise Source: www. to $31 billion at yearend 1999.g. nominally headed by the paramount ruler and a bicameral Parliament consisting of a nonelected upper house and an elected lower house. the right to maintain their own immigration controls). internal security. and other powers delegated to federal government • Economy . internal security. Penang. with foreign affairs. Government and private forecasters expect Malaysia to continue this trend in 2000. which grew over 10% and fiscal stimulus from higher government spending.. Federation of Malaysia (Malaya. defense. Sarawak. GDP grew 5%. powers of state governments are limited by the federal constitution. in which both inflation and unemployment stand at 3% or less.odci. This stable macroeconomic environment.holds 28 seats in House of Representatives. The large export surplus has enabled the country to build up its already substantial financial reserves. its long-term prospects are clouded by the lack of reforms in the corporate sector. Peninsular Malaysian states hereditary rulers in all but Melaka. . with foreign affairs. under terms of the federation.

Marketing Control Marketing Plans Actions Outcome Goals Compare outcomes with goals Analyse deviations Solve Problem Exploit success sj Learn & revise .

personalisation Develop a product into a service. build relationship One shot. campaign. seasonal.Direct Marketing Mix Direct Marketing Mix Offer (10%) Creative (5%) Timing/ sequence (20%) OFFER> CREATIVE> CUSTOMER SERVICE> TIMING> MEDIA> LIST 50% Customer service (10%) Media (5%) Product /service. repetitive Above/Below . price incentive other elements Copy & graphics.

SWOT analysis Strengths Weaknesses Opportunities Threats .

Quality 2. Cleanliness .What has contributed to the success of McDonalds? Process Management 1. Value 4. Service 3.

Strengths & Weaknesses – where are we now? 2. Opportunities & Threats – where do we want/not to be? 3. Only useful when specific and unique information used .How to effectively use a SWOT analysis S O W T 1.

It is widely acknowledged that Highly Brill has the best-trained and most respected staff of all of the centres in the locality . Highly Brill Leisure Centre Highly Brill Leisure Centre has hired you to help them with their marketing decision making. There has been a substantial decrease in the birth rate over the last ten years. although it has no wave machines or whirlpool equipment as do competing local facilities. The local authority is considering privatizing all local leisure centres by the year 2000. The Centre has been offered the latest sporting craze. based upon the following issues: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) The Centre is located within a two-minute walk of the main bus station. and is a fifteen-minute ride away from the local railway station. There is a competition standard swimming pool. Highly Brill Leisure Centre has received a grant to fit special ramps and changing rooms to accommodate the local disabled. Perform a SWOTanalysis on Highly Brill Leisure Centre. Press releases have just been issued to confirm that Highly Brill Leisure Centre is the first centre in the area to be awarded quality assurance standard BS EN ISO 9002. It is one of the oldest centres in the area and needs some cosmetic attention. It is located next to one of the largest shopping centres in Britain. Due to an increase in disposable income over the last six years. the leader of a respected local scuba club is looking for a new venue. which has never made a profit.Exercise. local residents have more money to spend on leisure activities.SWOT Analysis . In general people are living longer and there are more local residents aged over fifty-five now than ever before. A private joke between staff states that if you want a day-off from work that you should order a curry from the Centre's canteen. After a heated argument with the manager of a competing leisure centre.

Points 2 and 10 are difficult to place. This does not mean that you are wrong. Point 10 is an internal strength and an external opportunity.Highly Brill Leisure Centre SWOT Analysis Answer: As you can see Marketing Teacher's answer does not completely agree with yours.Answer . . Point 2 depends on whether or not wave machines or a whirlpool have a distinct competitive advantage over a competition standard pool. It simply means that the results of your analysis are represented in a different way.

handling. Even though it is a small company. dryness etc) . especially Germany and Switzerland. saltiness.Example of a SWOT analysis West Coast Fish Products is a small fish processing company in Ireland. herbs and spices to achieve a distinctive flavour. it uses a formal approach to marketing planning. low in fat and cholesterol Contract catering sector relatively underdeveloped The rural. Although its main market is in Ireland. peaking at Christmas Domestic Irish market relatively small Smoked salmon regarded in Ireland as luxury speciality food Pressure on prices in domestic market from retail & catering buyers Low levels of supplier loyalty Highly competitive European market (80 competitors in Ireland alone) with strong competition from Norway and Denmark in particular Markey pressure to raise quality standards.company no proactive enough Limited resources for intensive market development Remote European location means higher transport costs and reduces shelf life of products by up to 7 days Retail and catering trade dominated by a few large customers Opportunities Increasing European consumption of smoked salmon Fish seen as a healthy product. Its SWOT analysis revealed the following issues: 1> (a) (b) (c) (d) 2> (a) (b) (c) (d) (e) (f) 3> (a) (b) (c) (d) (e) (f) 4> (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) Strengths Reputation fir quality in raw materials and processes Value added products using herbs Knowledge of the market and contacts in Germany. trout and mackerel. additives. France & Switzerland Good location for accessing raw material Weaknesses No formal organisation for marketing Emphasis on quality and production rather than on systematic market development Buyers tend to initiate contact. identifying priorities for marketing strategy development. green image of Ireland reflects positively on Irish food products Government aid programmes for small businesses in exporting New potential in US and Japanese markets Threats Seasonal demand. marketing Variety of tastes and demands across different markets (colour. especially with smoked salmon Business vulnerable to impact of disease and pollution in sigh stocks Tougher European legislation affecting processing. which smokes salmon. it is looking towards European markets. using a special blend of woods.

under opportunities one might find the term 'Technology. Once detail has been added. attitudes and beliefs to the audit. For example. and Opportunity B last. Why is there a need for an advanced approach to SWOT Analysis? SWOT analysis is a marketing audit that considers an organization's strengths. Where Opportunity C = 60%. This provides the opportunity of a distinct competitive advantage for our company. knowledge. R = Rank and prioritize. weaknesses.your marketing plan would address Opportunity C first. opportunities or threats. For example. Detail. its flexibility. Our introductory lesson gives you the basics of how to complete your SWOT as you begin to learn about marketing tools. and Threat C = 20% (they total 100%). This lesson aims to help you overcome potential pitfalls. Since SWOT analysis can be used in a variety of scenarios. and then prioritize those with the highest rank e.• • • • • • • • • • • • • • • • • SWOT Analysis . and address weaknesses so that they become strengths.e. and where do we want to be? Strategies would bridge the gap between them. E = Emphasize detail. It is important to address opportunities primarily since your business should be market oriented. and Opportunity B = 10% . and threats and weaknesses. Threat B = 70%. Threat A = 10%. Naturally some points will be more controversial than others. P = Personal experience. Problems with basic SWOT analysis can be addressed using a more critical POWER SWOT.strengths or weaknesses. opportunities and threats. skills. Weighting.g. So weight the factors. Then match strengths to opportunities and look for a fit. in relation to global warming and climate change.POWER SWOT. Order. it has to be flexible. O = Order . As you learn more about SWOT analysis. Your perception or simple gut feeling will impact the SWOT. opportunities and threats. W = Weighting. One way would be to use percentages e. Too often elements of a SWOT analysis are not weighted. Address any gaps between current strengths and future opportunities.' This single word does not tell a reader very much.g. Gap analysis would be useful at this point i.e. you will become aware of a number of potential limitations with this popular tool.e. weaknesses. and factors have been reviewed for weighting. you can begin to select those factors that will most greatly influence your marketing strategy albeit a mix of strengths. What is really meant is: 'Technology enables marketers to communicate via mobile devices close to the point of purchase. POWER is an acronym for Personal experience. Emphasize detail. How do you the marketing manger fit in relation with the SWOT analysis? You bring your experiences. This is how it works. Often marketing managers will inadvertently reverse opportunities and strengths. However this can lead to a number of anomalies. What one tends to find is that the analysis contains lists of single words. This is because the line between internal strengths and weaknesses. you can then progress to give the SWOT analysis some strategic meaning i. reasoning and justification are often omitted from the SWOT analysis. and external opportunities and threats is sometimes difficult to spot. Marketing Teacher's Approach to SWOT Analysis. one could mistake environmentalism as a threat rather than a potential opportunity. where we are now. Some of the problems that you may encounter with SWOT are as a result of one of its key benefits i. Finally attempt to rephrase threats as opportunities (as with global warming and climate change above).' This will greatly assist you when deciding upon how best to score and weight each element. Essentially you rank them highest to lowest. . and Rank and prioritize. Opportunity A = 25%.

in relation to your competitors). A word of caution. joint ventures or strategic alliances. Two people rarely come-up with the same final version of SWOT. Price wars with competitors. TOWS analysis is extremely similar. Undifferentiated products or services (i. It simply looks at the negative factors first in order to turn them into positive factors. opportunities and threats are external factors. A new international market. Avoid complexity and over analysis SWOT is subjective. strengths and weaknesses are internal factors. Location of your business. Quality processes and procedures. Keep your SWOT short and simple. A threat could be: A new competitor in your home market. SWOT analysis should distinguish between where your organization is today. Avoid grey areas. Any other aspect of your business that adds value to your product or service. Location of your business. innovative product or service. better than or worse than your competition. For example: An opportunity could be: A developing market such as the Internet. Taxation is introduced on your product or service. Poor quality goods or services. Damaged reputation. A competitor has a new. Always apply SWOT in relation to your competition i. Moving into new market segments that offer improved profits. Competitors have superior access to channels of distribution. innovative product or service. A weakness could be: Lack of marketing expertise.e. A market vacated by an ineffective competitor. Be realistic about the strengths and weaknesses of your organization when conducting SWOT analysis. SWOT should always be specific. SWOT analysis can be very subjective. In SWOT. So use SWOT as guide and not a prescription. Mergers.• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • In SWOT. and where it could be in the future. A new. Simple rules for successful SWOT analysis. For example:A strength could be: Your specialist marketing expertise.e. . Do not rely on SWOT too much.

The organisation does have a diversified range of sports products. Threats . or form strategic alliances with other global retailers. food. Threats.Product development offers Nike many opportunities.click to go straight to them Do you need a more advanced SWOT Analysis? Some of the problems that you may encounter with SWOT are as a result of one of its key benefits i. They diversified from large super centres. Strengths. despite its IT advantages. earning in excess of $600 million in 2004. It's that simple. Threats . store-by-store at a glance. and has experienced global expansion (for example its purchase of the United Kingdom based retailer ASDA).Weaknesses Starbucks has a reputation for new product development and creativity. and retaining a developing them. The cost of producing many consumer products tends to have fallen because of lower manufacturing costs. locally and globally. to local and mall-based sites. Problems with basic SWOT analysis can be addressed using a more critical POWER SWOT. or form strategic alliances with other global retailers. Phil Knight (Founder and CEO) is often quoted as saying that 'Business is war without bullets. So SWOT is a very popular tool with marketing students because it is quick and easy to learn.Starbucks are exposed to rises in the cost of coffee and dairy products. Strengths . resulting in price deflation in some ranges.e. Manufacturing cost have fallen due to outsourcing to low-cost regions of the World. but has has a presence in relatively few countries Worldwide. SWOT can be used in conjunction with other tools for audit and analysis. merge with.'Weaknesses .Nike SWOT Analysis. Weaknesses. it may not have the flexibility of some of its more focused competitors. Opportunities exist for Wal-Mart to continue with its current strategy of large. such as China and India.Weaknesses .Opportunities . Since SWOT analysis can be used in a variety of scenarios. focusing on specific markets such as Europe or the Greater China Region. Being a global retailer means that you are exposed to political problems in the countries that you operate in.Starbucks Corporation is a very profitable organisation. The stores are currently only trade in a relatively small number of countries. focusing on specific markets such as Europe or the Greater China Region. convenience and a wide range of products all in one store. Strengths . Opportunities . list factors in the relevant boxes. could leave it weak in some areas due to the huge span of control. The company has a core competence involving its use of information technology to support its international logistics system. Opportunities. People are key to Wal-Mart's business and it invests time and money in training people. Example 2 . Below are some FREE examples of SWOT analysis . SWOT Analysis Examples A summary of FREE SWOT analyses case studies are outlined as follows (those in the table above are far more detailed and FREE!): Example 1 . it has to be flexible. despite its IT advantages.Wal-Mart SWOT Analysis.Wal-Mart is a powerful retail brand. Since Wal-Mart sell products across many sectors (such as clothing.Wal-Mart is the World's largest grocery retailer and control of its empire.Nike is a very competitive organisation. they feed into marketing objectives. it can see how individual products are performing country-wide. Wal-Mart has grown substantially over recent years. Example 3 . This has lead to price competition. To take over. locally and globally. The company is global. For example. Being number one means that you are the target of competition. Therefore there are tremendous opportunities for future business in expanding consumer markets. or stationary). Wal-Mart is the World's largest grocery retailer and control of its empire. convenience and a wide range of products all in one store. Threats . It has a reputation for value for money.• • • • • • • • • • • • • • • • • • • • • • • • • • Once key issues have been identified with your SWOT analysis. super centres. New locations and store types offer Wal-Mart opportunities to exploit market development.Nike is exposed to the international nature of trade. such as PEST analysis and Porter's Five-Forces analysis. Wal-Mart is a powerful retail brand.Starbucks SWOT Analysis. Strengths .New products and services that can be retailed in their cafes. could leave it weak in some areas due to the huge span of control. IT also supports Wal-Mart's efficient procurement. However this can lead to a number of anomalies. It has a reputation for value for money. Intense price competition is a threat . merge with. such as Fair Trade products. its flexibility. A focused strategy is in place for human resource management and development. Opportunities .Being number one means that you are the target of competition. During the SWOT exercise.To take over.

2004. Starbucks Corporation is a very profitable organization. Inc.6 million associates worldwide through more than 3. New markets for coffee such as India and the Pacific Rim nations are beginning to emerge. Who knows if the market for coffee will grow and stay in favour with customers.3 billion in sales in the fiscal year ending Jan. and brand franchising to manufacturers of other goods and services both have potential.'Wal-Mart Stores. is the world's largest retailer.The company generated revenue of more than $5000 million in the same year. with $256. the retail of coffee. The company employs 1. . Starbucks' success has lead to the market entry of many competitors and copy cat brands that pose potential threats. The organization is dependant on a main competitive advantage. Seattle in 1971. The organization has a strong presence in the United States of America with more than three quarters of their cafes located in the home market. 31. 'Starbucks' mission statement is 'Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow. Starbucks has a reputation for new product development and creativity. This could make them slow to diversify into other sectors should the need arise. It is often argued that they need to look for a portfolio of countries. earning in excess of $600 million in 2004. they remain vulnerable to the possibility that their innovation may falter over time. New products and services that can be retailed in their cafes. where customers create their own music CD. However. or whether another type of beverage or leisure activity will replace coffee in the future? Starbucks are exposed to rises in the cost of coffee and dairy products. The organization has strong ethical values and an ethical mission statement as follows. In 2004 the company created a CD-burning service in their Santa Monica (California USA) cafe with Hewlett Packard. The company is a respected employer that values its workforce. . The company has the opportunity to expand its global operations. It has almost 9000 cafes in almost 40 countries. Starbucks are very good at taking advantage of opportunties. It is a global coffee brand built upon a reputation for fine products and services. Starbucks was one of the Fortune Top 100 Companies to Work For in 2005.' Weaknesses. in order to spread business risk.more? Go to Wal-Mart Facts • • • • • • • • • • • • • • • • • • • • Strengths. Opportunities. 'Starbucks is committed to a role of environmental leadership in all facets of our business. Co-branding with other manufacturers of food and drink.' The following six guiding principles will help us measure the appropriateness of our decisions' more? .570 units . Threats.600 facilities in the United States and more than 1. Since its conception in Pike Place Market. such as Fair Trade products.

Nike is strong at research and development. The organization does have a diversified range of sports products. They then manufacture wherever they can produce high quality product at the lowest possible price. This makes a very lean organization. Nike is a very competitive organization. and Phil Knight even has it tattooed on his ankle. Nike did not. Reebok went to the expense of sponsoring the games. Can you tell one sports retailer from another? So margins tend to get squeezed as retailers try to pass some of the low price competition pressure onto Nike. However Nike sponsored the top athletes and gained valuable coverage.' Nike has a healthy dislike of is competitors. Nike . and products can be made more cheaply elsewhere (to the same or better specification). If prices rise. It is the number one sports brand in the World. The retail sector is very price sensitive. This may leave it vulnerable if for any reason its market share erodes. However. Nike will move production. Weaknesses. Its famous 'Swoosh' is instantly recognisable. At the Atlanta Olympics. as is evidenced by its evolving and innovative product range. Nike has no factories. most of its income is derived from selling into retailers. Nike is a global brand. It does not tie up cash in buildings and manufacturing workers. Phil Knight (Founder and CEO) is often quoted as saying that 'Business is war without bullets. However.• • • • • • • Strengths. Retailers tend to offer a very similar experience to the consumer. the income of the business is still heavily dependent upon its share of the footwear market. Nike does have its own retailer in Nike Town.

This creates its own opportunities. Nike is exposed to the international nature of trade. and buy the cheaper of the two. 'If you have a body. This ultimately means that consumers are shopping around for a better deal. Product development offers Nike many opportunities. like it or not. Competitors are developing alternative brands to take away Nike's market share. For example. Nike is a fashion brand. It defines how he viewed the world. It buys and sells in different currencies and so costs and margins are not stable over long periods of time. The business could also be developed internationally. Such consumer price sensitivity is a potential external threat to Nike. sunglasses and jewellery. Some would argue that in youth culture especially. The brand is fiercely defended by its owners whom truly believe that Nike is not a fashion brand. Ours is a language of sports. The guy was right.• • • • Opportunities. This is an issue that faces all global brands. The model developed by Phil Knight in his Stamford Business School days (high value branded product manufactured at a low cost) is now commonly used and to an extent is no longer a basis for sustainable competitive advantage. and it defines how Nike pursues its destiny.Bill Bowerman said this a couple of decades ago. There is also the opportunity to develop products such as sport wear. a universally understood lexicon of passion and competition. the retail sector is becoming price competitive. There are also global marketing events that can be utilised to support the brand such as the World Cup (soccer) and The Olympics. A lot has happened at Nike in the 30 years. As discussed above in weaknesses. building upon its strong global brand recognition. emerging markets such as China and India have a new richer generation of consumers. So if one store charges a price for a pair of sports shoes. Threats.e. There are many markets that have the disposable income to spend on high value sports goods. The market for sports shoes and garments is very competitive. Such an exposure could mean that Nike may be manufacturing and/or selling at a loss. you are an athlete' . consumers need to replace shoes. • • • • • . the consumer could go to the store along the street to compare prices for the exactly the same item. high profits. since product could become unfashionable before it wears out i. consumers that wear Nike product do not always buy it to participate in sport. However. Such high value items do tend to have associated with them.

‘High’ Price Cowboy brands Premium Brands ‘Low’ quality Economy Brands ‘High’ quality Bargain brands ‘Low’ Price .

Sender (company) Receiver (customer) Noise factors outside senders control Feedback .

Word of mouth Promotional influences on the customer Pe r so ng Sa le na l se l li Advertising hi p or s s on Sp The Customer D I nt e sp r om oti on li Pub ng Pac kag i n Bra din g s t io n a c re l Me r ct m i re chan d is i n g ke t in g ar Corporate image r na l mar ke t i ng .

D is a symbolic uniform that acts as a flag expressing everything about the organisation .The Corporate identity mix ‘Painting the lavatory door won’t cure the plumbing’. David Bernstein Logo Corporate I.

Production Production Finance Fina nce MARKETING HR Marketing HR Finance Production Prod u HR ctio n Marketing M ar ke t in g Fina nce HR CUSTOMER .

Kotler’s 3x3 matrix identifying different competitive positioning strategies PRICE Product quality High Premium strategy Overpricing strategy Hit and run strategy Medium Penetration strategy Average quality strategy Shoddy goods strategy Low Superbargain strategy Bargain strategy Cheap goods strategy High Medium Low .

Efficiency versus Effectiveness Ineffective Inefficient Goes out of Business quickly Effective Survives Efficient Dies Slowly Thrives .

This is the crucial difference between: product orientation Fina nce The customer as the controlling function and marketing as the integrative function Putting the product 1st market orientation Putting the customer 1st . but that they research what customers want and then try to make and market a range of those wants.Production Marketing Customer HR Organisations do not make products which they then try to sell to customers.

sales Sales profit Introduction Growth Maturity Decline Time .

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Any company selling more than one product must achieve Continuous growth by introducing products in a well timed way The idea of a portfolio is to balance growth. cash flow and risk .

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where are we now? and where do we want to be? The difference between the two is the GAP . For example. The upper line is where you want to be. by market share. The lower line is where you'll be if you do nothing. the simple tools are the most effective.Gap Analysis • Gap analysis is a very useful tool for helping marketing managers to decide upon marketing strategies and tactics.this is how you are going to get there . Again. Then you simply ask two questions . This will help you to write SMART objectives. Take a look at the diagram below. The first step is to decide upon how you are going to judge the gap over time. There's a straightforward structure to follow. by profit. by sales and so on. .

The diagram below uses Ansoff's matrix to bridge the gap using strategies: . If you are writing strategy.• Your next step is to close the gap.see the lesson on marketing plans. Firstly decide whether you view from a strategic or an operational/tactical perspective. you will go on to write tactics .

The marketing mix is ideal for this. . This is how you close the gap by deciding upon strategies and tactics . That is to say you change price. or promotion to move from where you are today (or in fact any or all of the elements of the marketing mix).• You can close the gap by using tactical approaches. So effectively.and that's gap analysis. you modify the mix so that you get to where you want to be.

Diffusion of innovation Number of new adopters Innovators (2.5%) Early Majority (34%) Late majority (34%) Laggards (16%) Some people/companies are always prepared to buy new products. . All products and services have customers which fall into these categories.5%) Early adopters (13. while others wait until things are tried and tested.

Current products Current markets New products New markets .

. Exporting the product. This means increasing our revenue by.Market Penetration • Here we market our existing products to our existing customers. are examples of market development. the product is not altered and we do not seek any new customers. promoting the product. This means that the product remains the same. and so on. but it is marketed to a new audience. However. Market Development • Here we market our existing product range in a new market. for example. or marketing it in a new region. repositioning the brand.

There are two types of diversification. . Unrelated diversification is where we have no previous industry nor market experience. a soup manufacturer diversifies into cake manufacture (i. namely related and unrelated diversification. Such products are then marketed to our existing customers. For example. the food industry). For example a soup manufacturer invests in the rail business. Related diversification means that we remain in a market or industry with which we are familiar. Here we develop and innovate new product offerings to replace existing ones.Product Development • This is a new product to be marketed to our existing customers.e. This often happens with the auto markets where existing models are updated or replaced and then marketed to existing customers. Diversification • This is where we market completely new products to new customers.

Colorado Ricardo Mountain Bikes was founded by Ricardo Francisco in 1992. He was very competitive and loved to take his bike off-road to test his strength and endurance. However sales have fallen annually since then and forecasted sales for 2000 are only 4.Ansoff's Matrix Exercise Colorado Ricardo Mountain Bikes. . It went so well that soon he was able to give up his own job as a DJ to focus on the construction of the bikes. Ricardo's company needs strategies for growth before it is too late. which he called the 'Colorado Ricardo'. Ricardo's business grew to produce 10. However he found that the bikes themselves kept on breaking-down under the strain.000 units. As the mountain bike sport took off. He was a keen cyclist who spent his weekends with many friends cycling and having fun in the mountains of Colorado. Use Ansoff's matrix to examine the options for Colorado Ricardo. People liked Ricardo's bike and he was asked to build and sell them to other cyclists in the Colorado region.000 units in 1996. So Ricardo designed and built a number of bikes to overcome this problem. Many failed but eventually he came up with the ultimate in off-road bike.

and others.Ansoff's Matrix Answer Colorado Ricardo Mountain Bikes. This is based upon a number of factors such as competitive activity. As a marketer you now have to decide upon which strategy or strategies the company should actually implement. As you can see there are many strategic options for Ricardo. . the good old 'gut feeling'. available resources.

Boston Consulting Group Matrix High Market growth Low STARS PROBLEM CHILD CASH COWS DOGS High Low Relative Market share .

A star is the market leader in a highgrowth market. then the company occupies a fortunate position and is known as a "star. in of the particular product’s resource requirements. in essence the idea is to milk the cash cow and to limit spending. The most appropriate strategy for star companies is to exploit their competitive advantage and protect themselves against new competitors entering the industry. They therefore generate healthy cash reserves. . These products may generate major cash inflows through their market share.These products are market leaders within mature markets that are no longer as demanding in marketing terms. If both the company's competitive position and the industry's attractiveness and growth rate are strong." Stars require constant grooming on their way to success. in excess. A star does not necessarily produce a positive cash flow for the company. whilst reducing the overall expenditure on these products.

They typically generate low profits or losses. generate as much cash as possible in the short term. and the company's future prospects in the industry do not appear promising. it is particularly important for the business owner to understand his or her customers and competitors to determine whether it will be possible for the company to develop a competitive advantage. The business owners have important strategic decisions to make.Most new products start off as ‘problem children’. the company's weak position means that it will have to make a significant investment to take advantage of the opportunity presented. and consider exiting the industry. as the company tries to enter a high-growth market in which there is already a market leader. Although there is strong future potential in the industry. Dogs are businesses that have weak market share in low growth markets. Dogs often consume more management time than they are worth. The potential for market growth is limited. . The most appropriate strategy for a dog company is to limit spending. In this case.

3. it may gain a high market share quickly but it still has to cover very high development costs. . There is an assumption that higher rates of profit are directly related to high rates of market share. This may not always be the case. 2. The main problem is that it oversimplifies a complex set of decision. This is an SBU not a single product. Be careful. When Boeing launch a new jet. Use the Matrix as a planning tool and always rely on your gut feeling. Ford own Landrover in the UK. 4. This is not always the case.Problems with The Boston Matrix 1. It is normally applied to Strategic Business Units (SBUs). There is another assumption that SBUs will cooperate. For example. These are areas of the business rather than products.

There is no point in developing products or services in this quadrant.The rather crude metaphor is based on the idea of 'milking' the returns from previous investments which established good distribution and market share for the product. but existing low market share.This is any product or service of yours which has low market presence in a mature or stagnant market. which is by no means assured . and cost you just as much to sell to as a large organization. Many organizations discontinue products/services that they consider fall into this category. Businesses that have been starved or denied development find themselves with a high or entire proportion of their products or services in this quadrant. where the pioneers take the risks in the hope of securing good early distribution arrangements. not a magic solution in themselves). except to the competitors. because there is little or no additional growth available. which is obviously not very funny at all. and the company needs to have the next rising stars developing from its problem children. but overheads. competition is not yet fully established. and for many businesses just as significant as the Ansoff-type-options.Or 'star' products. normally because they are new products. in which case consider potential impact on overhead cost recovery.many problem children products remain as such. . are normally high. image. rather than taking a sophisticated product or service solution to smaller companies which do not appreciate or require it.do they offer better opportunity for growth and development than your ordinary business? Do you have a high quality. in the form of costs of research. which optimises selling efficiencies and margins. or the application has not been spotted and acted upon yet.cash cow . and low economies of scale. These are great products and worthy of continuing investment provided good growth potential continues to exist. and can cause initial business development in this area to be loss-making until the product moves into the rising star category. After considering your business in terms of the Ansoff matrix and Boston matrix (which are thinking aids as much as anything else. New business development and project management principles are required here to ensure that these products' potential can be realised and disasters avoided. and so pricing is relatively unhindered. This all means that these products produce very good returns and profitability. advertising. As a product moves into this category it is commonly known as a 'rising star'. Production and manufacturing overheads are established and costs minimised due to high volumes and good economies of scale. are those which have good market share in a strong and growing market. When a market is strong and still growing. problem child . rising star . development. market education. specialised offering that delivers better business benefit on a large scale as opposed to small scale? Are your selling costs and investment similar for large and small contracts? If so you might do better concentrating on developing large major accounts business. Products in this quadrant need maintenance and protection activity. When it does not these products are likely to move down to cash cow status. what is the significance of your major accounts . together with good cost management. This is likely to be an area of business that is quite competitive. Demand is strong.These are products which have a big and growing market potential. not growth effort. reputation and market share. Gross profit margins are likely to be high. The market is receptive and educated. dog . on a more detailed level. saturation or over-supply do not exists.

screwdriver. Manor Way's main competitor is Oliver Tools. Core products include handsaws. and the enthusiastic amateur. production. drill bits. Their first products were fish hooks which were made from the flexible wire that they were able to produce. It was strong and flexible. bowsaws etc. The tool trade is very complex and competitive. Over the years the product portfolio grew to include anything that their operation could turn its hand to such as javelins and railings. It was one of the first companies to put carbon into regular iron to create steel. Analyze your product portfolio using the Boston Matrix. Today they focus their operations on the manufacture of tools for the professional. . They are the market leader in many similar areas of the market.Boston Matrix Exercise Manor Way Tools Manor Way Tools began life as a small steel company at the end of the 19th Century.

. each of the products is positioned upon the Matrix.they were thrown away long ago.Answer Manor Way Tools As you can see. You'll notice that the Javelins do not appear .The Boston Matrix .

yielding market share benefits (b) with a price premium perceived added value sufficient to to bear price premium Option five .Differentiation (a) without a price premium perceived added value by user. Option three . Faulkner 'Competitive and Corporate Strategy .low price/low added value likely to be segment specific Option two . It's another suitable way to analyze a company's competitive position in comparison to the offerings of competitors.Bowman's Strategy Clock The Strategy Clock: Bowman's Competitive Strategy Options The 'Strategy Clock' is based upon the work of Cliff Bowman (see C. Bowman and D.focussed differentiation perceived added value to a 'particular segment' warranting a premium price Option six .1996).low price risk of price war and low margins/need to be a 'cost leader'. Bowman considers competitive advantage in relation to cost advantage or differentiation advantage.low value/standard price loss of market share . Option seven . As with Porter's Generic Strategies.increased price/low values only feasible in a monopoly situation Option eight .Irwin .increased price/standard higher margins if competitors do not value follow/risk of losing market share. There a 8 core strategic options: Option one .Hybrid low cost base and reinvestment in low price and differentiation Option four .

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lean manufacturing. Internet marketing activities. Service This includes all areas of service such as installation. The 'margin' depicted in the diagram is the same as added value. and many other technological developments. and ePurchasing (using IT and web-based technologies to achieve procurement aims). Porter in his book. and rewards and remuneration. Firm Infrastructure This activity includes and is driven by corporate or strategic planning. They are stored until they are needed on the production/assembly line. Operations This is where goods are manufactured or assembled. Technology Development Technology is an important source of competitive advantage. or the final tune for a new car's engine. It includes the Management Information System (MIS). complaints handling. The organisation is split into 'primary activities' and 'support activities.' Primary Activities Inbound Logistics Here goods are received from a company's suppliers. services and materials. It was created by M. training and so on. This area focuses strongly upon marketing communications and the promotions mix.Value Chain Analysis The value chain is a systematic approach to examining the development of competitive advantage. at this stage the organisation prepares the offering to meet the needs of targeted customers. Support Activities Procurement This function is responsible for all purchasing of goods. They culminate in the total value delivered by an organisation. They will be responsible for outsourcing (components or operations that would normally be done in-house are done by other organisations). An organisation would manage recruitment and selection. Outbound Logistics The goods are now finished. packing of books/videos/games by an online retailer. Marketing and Sales In true customer orientated fashion. . The chain consists of a series of activities that create and build value. Goods are moved around the organisation. Human Resource Management (HRM) Employees are an expensive and vital resource. Customer Relationship Management (CRM). Companies need to innovate to reduce costs and to protect and sustain competitive advantage. Competitive Advantage (1980). This could include production technology. The aim is to secure the lowest possible price for purchases of the highest possible quality. E. and other mechanisms for planning and control such as the accounting department. after-sales service. retailers or the final consumer. The mission and objectives of the organisation would be driving force behind the HRM strategy. and they need to be sent along the supply chain to wholesalers. training and development. Individual operations could include room service in an hotel.

Acquisition LEAKY BUCKET Storage De-selection Retention .

McKinsey’s Seven S’ model .

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but have the brand and marketing skills to use a premium pricing policy. These costs must be offset by the increase in revenue generated by sales. The benefits of differentiation require producers to segment markets in order to target goods and services at specific segments. . Some organization. Cost Leadership The low cost leader in any market gains competitive advantage from being able to many to produce at the lowest cost. such as Toyota. Producers could price at competitive parity. are very good not only at producing high quality autos at a low price. For example.1. labour is recruited and trained to deliver the lowest possible costs of production. ‘cost advantage’ is the focus.’ However. British Airways differentiates its service. Differentiation Differentiated goods and services satisfy the needs of customers through a sustainable competitive advantage. Costs must be recovered. exploiting the benefits of a bigger margin than competitors. generating a higher than average price. Factories are built and maintained. Therefore there is always an incentive to innovated and continuously improve. low cost does not always lead to low price. There is also the chance that any differentiation could be copied by competitors. Costs are shaved off every element of the value chain. The differentiating organization will incur additional costs in creating their competitive advantage. Products tend to be ‘no frills. This allows companies to desensitize prices and focus on value that generates a comparatively higher price and a better margin. 2.

telecommunications. Small. defined segment of a market. . With a cost focus a firm aims at being the lowest cost producer in that niche or segment.g. It is argued that if you select one or more approaches. The danger of being ‘stuck in the middle. 4. Here an organization focuses effort and resources on a narrow. A company could use either a cost focus or a differentiation focus. a niche strategy could be more suitable. With a differentiation focus a firm creates competitive advantage through differentiation within the niche or segment. There are potentially problems with the niche approach.3. Cost focus is unachievable with an industry depending upon economies of scale e. A niche strategy is often used by smaller firms. that your organization gets stuck in the middle without a competitive advantage. and then fail to achieve them. specialist niches could disappear in the long term. Focus or Niche strategy The focus strategy is also known as a ‘niche’ strategy. Where an organization can afford neither a wide scope cost leadership nor a wide scope differentiation strategy. Competitive advantage is generated specifically for the niche.’ Make sure that you select one generic strategy.

Threat of new entrant Threat of Substitutes INDUSTRY PROFITS Intensity of Competition Rivalry Power Of Suppliers Power Of Customers .

g. Power is high where the brand is powerful e. small suppliers e. and competitive rivalry. cigarettes. The power of suppliers tends to be a reversal of the power of buyers. Pizza Hut. better toothpaste reduces the need for dentists. The high or low cost of entry e. Switching from one software supplier to another. the power of suppliers. Dell would analyse the market for Business Computers i. how much will it cost for the latest technology? Ease of access to distribution channels e. There is a possibility of the supplier integrating forward e. The cost of switching between suppliers is low e.g.g.g. large players in a market e.g. This is why it is always seen in the center of the diagram.g. If there are a large number of undifferentiated. Where there is generic substitution (competing for the currency in your pocket) e. Competitive Rivalry This is most likely to be high where entry is likely. For example.g. Brewers buying bars. one of its SBUs. The power of suppliers. and suppliers and buyers in the market attempt to control. personal contacts or knowledge that larger companies do not own or learning curve effects. the benefits associated with bulk purchasing. business or SBU (Strategic Business Unit) rather than a single product or range of products. Will competitors retaliate? Government action e.g.g.g. This desensitises the influence of the environment. will new laws be introduced that will weaken our competitive position? How important is differentiation? e. such as PEST analysis. Cadillac. It has similarities with other tools for environmental audit. .e. but tends to focus on the single. the power of buyers. Gas/Petrol stations in remote places. from one fleet supplier of trucks to another. there is the threat of substitute products.g. Microsoft. The Champagne brand cannot be copied.• • • • • • • • • • • • • • • • • • • • • • • • • • Five Forces Analysis helps the marketer to contrast a competitive environment. We could always do without e.g.g.g. Customers are fragmented (not in clusters) so that they have little bargaining power e.g. This is high where there a few. small farming businesses supplying the large grocery chains. Five forces analsysis looks at five key areas namely the threat of entry. The threat of substitutes Where there is product-for-product substitution e.g. Where the switching costs are high e. the large grocery chains. The power of buyers. Economies of scale e. Video suppliers compete with travel companies. stand alone. The threat of entry. the threat of substitutes. email for fax Where there is substitution of need e.g. Do our competitors have the distribution channels sewn up? Cost advantages not related to the size of the company e.

. and paper-based distance learning packs Companies.Analysing the environment . 7. More people with access to the web every second. Start up costs are very low Students have access to books. 2. 6.Exercise 'The market for on-line education' Place the following eight points onto the five forces model 1. Traditional colleges and universities are adapting their products for on-line learning.Five Forces Analysis . videos. governments. 8. The more innovative learning sites give lesson for free just for the love of it. 3. Government legislation in the US and Europe encourages on-line learning. 4. and self funding students invest huge amounts in their education There are very few high quality web sites available. 5.

Analysing the environment - Five Forces Analysis - Answer
• • • • • • • • Start up costs are very low (threat of entry - low barriers to entry) Students have access to books, videos, and paper-based distance learning packs (product-for-product substitution) Companies, governments, and self-funding students invest huge amounts in education. (High bargaining power of suppliers) There are very few high quality web sites available (high bargaining power of suppliers) Traditional colleges and universities are adapting their products for online learning (threat of new entrants - learning curve effects) Government legislation in the US and Europe encourages on-line learning (threat of entry reduced - by legislation). The more innovative learning sites give lesson for free just for the love of it (threat of entry - differentiation) More people with access to the web every second (bargaining power of buyers)

The relative effectiveness of communications tools
High
Advertising

Personal Selling

Sales Promotion

Low awareness interest conviction purchase post-purchase

The environment and the factors of change

competition Market Conditions

Technology

requirements
Modify: PR & marketing

Legal

or restrictions

Political environment

Economic influences

CLASSIFICATION OF BUSINESS ORGANISATIONS PRIVATE SECTOR SOLE TRADER PUBLIC SECTOR SMALL LOCAL AUTHORITY DIRECT LABOUR ORGS LOCAL AUTHORITIE S CO-OPS PARTNERSHIP CHARITIES PRIVATE LIMITED CO NATIONALISE D INDS QUANGOS BUILDING SOCIETIES GOVT DEPTS PUBLIC LIMITED CO LARGE .

daily decisions made by organisation. Office of Fair Trading.QUANGOs • • • • • • • QUANGO’s Quasi-Autonomous Non-Government Organisations Established by acts of parliament Operated be private individuals Free from government interference. E. the Arts Council Generally designed to implement of further government policy .g.

and selling goods so that they can be used by customers’’ There are 4 operators in the Distribution Sector: WA R EH OU SI N G G IN AL S LE HO W NG TI OR SP AN TR RE TA ILE RS . storing.‘‘Distribution is described as the process of delivering.

h ec T y og ol n Pr o du ct M ar ke tc The independent and the dependent variables on di ti on s Legal requirements or restrictions Political influences Pricing company les ons Sa oti rom p Ad v er n tisi M re ark se et ar ch Sales force Ec on om ic g in fl u en c es n tio i pet om C SJ .

Individual influences • personality • perception • motivation • attitude Decision-making Process Problem Recognition information search situational influences • sociocultural • technological • economic • political information evaluation Group influences • social class • culture/subculture • reference groups • family decision post-purchase evaluation Marketing Mix • product • price • place • promotion The consumer buying.decision making process and its influencing factors .

Initiator The family as a decision-making unit child asks for new toy End-user Child Influencer mum thinks it would be a good birthday present Purchasing decision Purchaser mum and dad buy the toy. Dad pays for it Decider mum & dad agree to buy. Child chooses the toy .

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4. Harvard Referencing: a guide with examples Research skills Guideline for effective report writing Good approaches for assignment planning Presenting the information correctly The learning styles questionnaire – Honey & Mumford . 6. 2. 3.Case Studies 1. 5.

Surinder Juneja Surinder Juneja t es T l se r ou y …p f hy us el f urs o .

(A) (B) (C) (D) (E) (F) (G) (H) (I) (J) (K) (L) (M) (N) Define marketing Draw the exchange process Identify the 7 Ps What are the uncontrollable constraints? Name the four stages in the Product Life Cycle? What is the difference between a product orientated and a market orientated company? What is AIDA? and where is it used? What is segmentation? Why is it necessary to divide subgroups into segments? What is Geographic segmentation? What is Demographic segmentation? How is social classes divided? What is Psychographic segmentation? What is Benefit segmentation? .

(Q) What does SPADE stand for? (R) What is ACORN and what can it be used for? (S) Draw the 2-way communication model (T) How does a marketer encode the message? (U) List the Communications Mix .(O) List three methods of positioning (P) Draw a perceptual map for Ford and BMW comparing price and quality of their motors).

Product class disassociation> lead-free vs lead free.on price and specific features.refers to what degree of info exits or is cost effectively obtainable on the particular buyer characteristic of interest. SALES LED> sales dept dominates i.g. Performance should be measured by obtaining data about actual results for a direct comparison with the targets or standards set. the sales team develops an in-depth knowledge of needs of a particular group of consumers and can get to know a network of potential buyers within the business. Stage 4 make a choice. (1)Bachelor Stage-young. Control info generated within the organisation is referred to as feedback. internal company data.consumer profiled by common characteristics. persuade. It is conducted very regularly and is very precise. Generally an organisation is effective if it meets the needs of its chosen client groups and deploys its resources in the best possible way. purchase behaviour. judgment. fixed assets.2 (Hertz). lets reduce the price. e. stratified. competition and large markets make it ineffective and inappropriate for companies to sell to the entire market. Efficiency and inefficiency are measures along the same scale. descriptive and causal. MARKET LED>a co.999 on the road! Positioning by benefits. Stage 5 Implementation. strategies which looks at co’s past performance and evaluates how effectively the marketing organisation has performed to assigned function e. however personality traits of buyers are more difficult to obtain. Effectiveness can be defined as success in producing a desired result. MARKETING STRATEGY>looks at specific target markets. Socio-economic variables-social class – education – income.g. ADVERTISING inform. MARKETING OPPORUNTITY-a mkt opp exists whenever there is a gap.older married couples with dependent children (6)Empty nest 1. Positioning for user category> 7-up’s FIDO DIDO. incorporating elements from more than one positioning base. (2)Accessibility-refers to the degree to which the company can focus effectively on the chosen segments using marketing methods (3)substantiality-refers to the degree to which the segments are large enough to be worth considering for separate marketing development. Stage 2 opportunities. Operating practices then benefit from the expertise of staff with specialist knowledge of the segments business.self expression. Mothercare) (3)Differentiated marketing. then segments are created on basis of similar characteristic and then mkt mix is designed for target market. Little consideration is given to the future. This lifestyle links status. Secondary info. Profile segmenting> Demographic variables. ACORN. POSITIONING> positioning by specific product features. Sampling – random. head of family still in labour force (7)Empty nest 2.Royce. A good company would combine all 3 aspects. every market segment. TARGETING>limited resources. when looking at Macro environment look at SLEPT. solutions or needs Crest toothpaste – cavity fighter. postal & telephone interview. External analysis (opps & threats)> Look at… *economic climate *demographic change *market *technology *competitive activity *channel pressure *politics. the manufacture of several different brands of washing powder).e. that is obsessed with mkt and gets continuous info on customers. They must select target markets. reinforce. cluster. Specialists can be developed and appointed to each of the companies major segment. prepared to try new products. When looking at the Micro environment look at Porters 5 forces.youngest child under 6 (4)Full nest 2-youngest child 6 or over (5)Full nest 3.g. POST-TESTING>involves finding out how well people can recall an advertisement and the product it advertises.problems. if not then re-assign new functions to all departments. Ford advertise a combination of ABS. 4Ps & 5 ms. an unfilled demand e. Benefits> identification of new marketing opportunities as a result of better understanding of consumer needs in each of the segments.aims to produce a single product and get as many customers as possible to buy it. Positioning against another product> Avis no. capacity (5)markets-reputation.in labour force (9)Solitary survivor 2. Personality. Martini. more affluent lifestyle. usage & purchase occasions. (External Audit PEST) (Internal Audit SWOT). no children living with them. ‘’Myopia’’ forgotten the need for customers. CENTRALISED>an organisation that has little delegation + major decisions are made by head office (big bosses) DECENTRALISED> more effective and speedier delegation. Posttesting would help to establish whether an organisation is succeeding in getting the corporate image it is trying to build up in the public mind.discuss. interests and opinions.cognac on special occasions. plans and controls to be used. Upward mobile ambitious> people seek a better. Hedonistic preference>the emphasis is on ‘enjoy life now’ and the immediate satisfaction of wants and needs.g. Traditional & Sociable>complaince and conformity to group norms being social approval and reassurance to the individual. and what types of competitive advantages to be developed. Behavioural segmenting>-benefits sought. Improved segmentation allows more highly targeted marketing activity. The control process involves 4 underlying components… 1> development of objectives. (2)Concentrated marketing-attempts to produce the ideal product for a single segment of the market (e. power steering.g. (9) How will it be financed? (10)operational considerations-how product to be made and what resources to be allocated (11)Appendix. MARKET RESEARCH> primary methods-(all based around a questionnaire)…personal interview. Security and status seeking> ‘safety’ needs and ‘ego’-defensive needs are stressed. convenience. that is. AIDA-attention. develop and decide upon marketing objectives 2>Establish performance measures and standards 3>Evaluate actual performance against established standards 4> Take corrective action as necessary. Rolls.(identifies 5 forces which influence the state of competition in an industry) (1)threat of new entrants to industry (2)threat of substitute products or services (3)bargaining power of customers (4)bargaining power of suppliers (5) rivalry amongst current competitors in industry.older married couple. tripartite relationship exists with agencies. to increase sale of product. how each cost center performs in the marketing department. SEGMENTING> identification of individuals with common characteristics. describes current activities and gathers as much environment influences as possible and it explores opportunities. desire and action. Types of market research – exploratory. interest. If the results are acceptable then continue. advertisers & media buyers. Requirements for effective market segment> (1)measurability. drink drive laws in Europe led to increase in low alcoholic beers. PRODUCT LED> a co. FAMILY LIFE CYCLE> ‘Family Decision Making Units’ represents a widely accepted classification of consumer ‘units’ which make buying decisions. each aimed at a different market segment (e. the panel. MARKETING PLAN> Either SOSTAC…(1) Exec summary (2)objectives (SMART) + mission statement (3)product background (4)marketing analysis-where you are in the market compared to competitors (5)marketing strategies to be used-what target market? Brand positioning? (6)expected result (7)program for implementation (8)control &evaluation SEE ABOVE FOR MARKETING CONTROL PROCESS. no children living at home. through better pay and more interesting work. Geographic variables-geography and taste.Internal analysis (stren & Weaks)> Look at…*marketing *products *distribution *r&d * plant & equip *finance *employees *structure. with ‘efficiency’ referring to a higher ration of output to input than the norm or standard and ‘inefficiency’ referring to a lower ratio. sunroof and all for $9. 5 M’s – (1)men+women (2)money (3) Materials-supply sources + products (4) Machines-production facilities. geo-demographics. ENVIRONMENTAL SCANNING & ANALYSIS> STAGE (1) collect info (2)assess and interpret (3) predict future (4)change is advancing. Specialist knowledge and extra effort may enable company to dominate particular segments and gain competitive advantage. focus group. Characteristics of individual customers are understood.g. Involves evaluating the environment in which you are operating in (Porter’s 5 Forces). Purchasing patterns are traditional. A car manufacturer may have access to info about location of a customer. Stage 3 strategic implications. single not living at home (2)Newly married couples-young. sales records. perceptions and beliefs. Positioning for specific usage.QUICK REFERENCE GUIDE BY SURINDER JUNEJA 1996© SWOT ANALYSIS.retired. income and security. Push strategy-use of personal selling/Pull-use of advertising . and whether or not performance rate needs to be changed.govern stats. Johnson’s baby shampoo everyday. Hybrid Basis>a positioning strategy may be founded on several of these alternatives. no children (3)Full nest 1.attempts to introduce several versions of a product. that is continuously looking on how to improve their product (innovation). head of family retired (8)Solitary Survivor 1.older married couples. In this process look at time duration you want to use. you are able to predict purchasing power e. according to needs and the likely return from each segment. segmentation is ignored. The total marketing budget can be allocated more effectively. position and market prospect PORTER 5 FORCES. Efficiency and effectiveness are 2 fundamental ways of measuring performance. competitor analysis etc. Psychographic segmenting> lifestyle-activities. MARKETING AUDIT>examination of marketing groups’ objectives. (1) Undifferentiated marketing. Porsche use a combination of the product benefit and user characteristics. and whether attitudes to the product have changed since the advertising campaign. ‘Efficiency is concerned with doing things right…Effectiveness is doing the right thing’ Efficiency can be defined as the ration of output quantities to input resources. north vs south. MARKETING CONTROL PROCESS> The control process is vital if management is to ensure that planning targets are achieved. MARKETING PLANNING PROCESS> Stage 1 analysis/assessment.

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