BUSINESS STUDIES
MARKETING
INTRODUCTION
MARKETING CAN BE DEFINED AS:
● the ongoing activities of the business to reach the target market
○ (LSM – Living Standard Measure)
● Methods the business uses to connect & engage with its target market.
● Purpose of engagement with the target market:
○ convince the market of the value of the products and/or services, with the
○ aim: of selling these products or services & making a profit.
LSM
● Living Standards Measure (LSM)
● Most widely used marketing research tool in SA.
● Divides the population into 10 LSM groups, 10 (highest) to 1 (lowest).
● Unique means of segmenting the SA market & defining the target market of a business.
● Cuts across race & other outmoded techniques of categorising people,
● Instead groups people according to their living standards using criteria such as degree of
urbanisation, ownership of cars and major appliances.
ROLE OF MARKETING AS PART OF THE OVERALL
BUSINESS STRATEGY
STRATEGIC ROLE OF MARKETING
● Strategic planning drives the overall performance of the business & involves:
○ Formulating a vision for the business
○ Translating this vision into a mission statement to describe what needs to be done
TODAY, to achieve the vision for the FUTURE.
● Everything the business does, will have an impact on the brand of the business.
○ The "brand" is the perception of the business.
1
, ● This strategic role of marketing can be summarised as follows:
○ Creating & supporting a strong & positive brand identity in the market through a
well-planned & well-implemented marketing strategy.
1. Strategic planning: Vision; mission; formulating the marketing strategy
2. Marketing strategy: Brand image: Identify the overall market scope (environmental scan);
determine the USP; determine the marketing budget
3. Implementing marketing strategy: Marketing of the product/service offering (implement 7Ps of
marketing); evaluate the effectiveness of both the strategy and its implementation.
● Why Marketing is of strategic importance as a function of business:
○ "A brand for a company is like a reputation for a person.
○ You earn your reputation by trying to do hard things well."
○ Helps the business build a brand in the minds of the consumer
■ Uses this brand continuously to remind the consumers about the business.
○ Help to remind consumers about the business' products/services so that when
they need to buy that particular product or service, it jumps to mind.
■ Marketing is used to gain and retain customers.
● Powerful tool of marketing communication: create a "marketing buzz" around the
product/service.
○ Business wants consumers to talk about its product/service.
● The stronger the awareness of the product/service in the mind of the consumer, the more
likely it is that the brand name will be used for future reference
○ hopefully turn into more sales.
● Engaging with customers via marketing gives the business the opportunity to listen to the
customer's feedback (both good and bad)
○ Helps the business to build a stronger brand (product/service).
2
, FORMULATING THE MARKETING STRATEGY
When planning marketing strategy, three different approaches emerge
OVERALL BRAND PRODUCT/SERVICE BOTH
Focus all energy on Focus marketing efforts on Emphasis on both the
marketing the overall marketing the product/service business & individual
brand of the business, offering, product/service offerings.
spend little time/effort on spend too much time on the
marketing individual overall brand of the business.
products/services..
TO FORMULATE A MARKETING STRATEGY
● Step 1: Perform an environmental scan
● Step 2: Define target market & Unique Selling Proposition (USP)
● Step 3: Determine the marketing budget
● Step 4: Implement the marketing mix to achieve the aims of the marketing strategy
● Step 5: Evaluate the effectiveness of the process and take corrective measures where
necessary
STEP 1: PERFORM AN ENVIRONMENTAL SCAN
The overall market scope is investigated by performing an Environmental scan.
The environmental scan involves looking at both the External and Internal environments:
EXTERNAL INTERNAL
● Industry ● SWOT
● Competitor ● Value chain
● Consumer ● Resource based
THREATS AND OPPORTUNITIES ● USP
3
MARKETING
INTRODUCTION
MARKETING CAN BE DEFINED AS:
● the ongoing activities of the business to reach the target market
○ (LSM – Living Standard Measure)
● Methods the business uses to connect & engage with its target market.
● Purpose of engagement with the target market:
○ convince the market of the value of the products and/or services, with the
○ aim: of selling these products or services & making a profit.
LSM
● Living Standards Measure (LSM)
● Most widely used marketing research tool in SA.
● Divides the population into 10 LSM groups, 10 (highest) to 1 (lowest).
● Unique means of segmenting the SA market & defining the target market of a business.
● Cuts across race & other outmoded techniques of categorising people,
● Instead groups people according to their living standards using criteria such as degree of
urbanisation, ownership of cars and major appliances.
ROLE OF MARKETING AS PART OF THE OVERALL
BUSINESS STRATEGY
STRATEGIC ROLE OF MARKETING
● Strategic planning drives the overall performance of the business & involves:
○ Formulating a vision for the business
○ Translating this vision into a mission statement to describe what needs to be done
TODAY, to achieve the vision for the FUTURE.
● Everything the business does, will have an impact on the brand of the business.
○ The "brand" is the perception of the business.
1
, ● This strategic role of marketing can be summarised as follows:
○ Creating & supporting a strong & positive brand identity in the market through a
well-planned & well-implemented marketing strategy.
1. Strategic planning: Vision; mission; formulating the marketing strategy
2. Marketing strategy: Brand image: Identify the overall market scope (environmental scan);
determine the USP; determine the marketing budget
3. Implementing marketing strategy: Marketing of the product/service offering (implement 7Ps of
marketing); evaluate the effectiveness of both the strategy and its implementation.
● Why Marketing is of strategic importance as a function of business:
○ "A brand for a company is like a reputation for a person.
○ You earn your reputation by trying to do hard things well."
○ Helps the business build a brand in the minds of the consumer
■ Uses this brand continuously to remind the consumers about the business.
○ Help to remind consumers about the business' products/services so that when
they need to buy that particular product or service, it jumps to mind.
■ Marketing is used to gain and retain customers.
● Powerful tool of marketing communication: create a "marketing buzz" around the
product/service.
○ Business wants consumers to talk about its product/service.
● The stronger the awareness of the product/service in the mind of the consumer, the more
likely it is that the brand name will be used for future reference
○ hopefully turn into more sales.
● Engaging with customers via marketing gives the business the opportunity to listen to the
customer's feedback (both good and bad)
○ Helps the business to build a stronger brand (product/service).
2
, FORMULATING THE MARKETING STRATEGY
When planning marketing strategy, three different approaches emerge
OVERALL BRAND PRODUCT/SERVICE BOTH
Focus all energy on Focus marketing efforts on Emphasis on both the
marketing the overall marketing the product/service business & individual
brand of the business, offering, product/service offerings.
spend little time/effort on spend too much time on the
marketing individual overall brand of the business.
products/services..
TO FORMULATE A MARKETING STRATEGY
● Step 1: Perform an environmental scan
● Step 2: Define target market & Unique Selling Proposition (USP)
● Step 3: Determine the marketing budget
● Step 4: Implement the marketing mix to achieve the aims of the marketing strategy
● Step 5: Evaluate the effectiveness of the process and take corrective measures where
necessary
STEP 1: PERFORM AN ENVIRONMENTAL SCAN
The overall market scope is investigated by performing an Environmental scan.
The environmental scan involves looking at both the External and Internal environments:
EXTERNAL INTERNAL
● Industry ● SWOT
● Competitor ● Value chain
● Consumer ● Resource based
THREATS AND OPPORTUNITIES ● USP
3
