Marketing Function
• The on-going activitie of the business to reach the target market (LSM) and the methods used to engage with
the target market.
Role of marketing in overall business strategy
• A vision must be formulated.
• The vision must be translated into a mission statement and then objectives.
• Brand: The perception of the business. Everything the business does impacts its brand.
• Strategic marketing: creating and supporting a strong and positive brand identity in the market through a
well-planned and well-implemented marketing strategy.
Strategic • Vision
Planning • Mission
• Formulate marketing strategy
Marketing • Identify the overall market scope
Strategy • Determine USP
• De ne marketing budget
Implement the • Marketing mix
Strategy • Evaluate the e ectiveness
• Marketing enables the business to build a brand in the mind of customers and then the brand can be used to
continuously remind the customers about the business.
• Reminds customers about the business’ products and services.
• Marketing buzz can be used to get customers talking about the products and services of a business.
• Engaging with customers gives the business an opportunity to listen to customer feedback to build a stronger
brand.
Formulating a marketing strategy
• Some businesses focus e orts on marketing the brand and not products.
• Some businesses focus e orts on marketing the products and not the brand.
• Some businesses focus e orts on marketing the products and the brand.
• The process to formulate a marketing strategy:
1. Environmental scan
2. De ne target market and Unique Selling Proposition
3. Determine the marketing budget
4. Implement the marketing mix
5. Evaluate the e ectiveness and take corrective measures if necessary
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, Step 1: Environmental scan
• SWOT
• Value chain analysis
Internal
• Resource-based analysis
• USP
• Industry analysis
External • Competitor analysis
• Customer analysis
Industry analysis
• All businesses in the sector the business operates in are analysed.
• Identify opportunities and threats.
Competitor analysis
• Analysing the competitors of the business by evaluating their strengths and weaknesses.
• Market mapping: visual representation of market conditions and trends.
• The position the business holds is plotted on the map to see where they are in comparison to competitors.
High quality and low price High quality and high price
Low quality and low price High quality and low price
Customer analysis
• Business must keep in mind the power of the buyer.
• The business needs to keep in mind the current and potential buyers.
• Assessing the customer base will help identify potential market segments.
• LSM: Living Standard Measurment is a widely used marketing tool that segments the population based on
standard of living.
• The purpose of LSM groupings is:
1. To gain an understanding of di erent market segments.
2. Assess how di erent groups spend their money.
3. Group customers with similar spending patterns.
• Customers in lower LSM groupings have lower disposable income and a lower standard of living.
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• The on-going activitie of the business to reach the target market (LSM) and the methods used to engage with
the target market.
Role of marketing in overall business strategy
• A vision must be formulated.
• The vision must be translated into a mission statement and then objectives.
• Brand: The perception of the business. Everything the business does impacts its brand.
• Strategic marketing: creating and supporting a strong and positive brand identity in the market through a
well-planned and well-implemented marketing strategy.
Strategic • Vision
Planning • Mission
• Formulate marketing strategy
Marketing • Identify the overall market scope
Strategy • Determine USP
• De ne marketing budget
Implement the • Marketing mix
Strategy • Evaluate the e ectiveness
• Marketing enables the business to build a brand in the mind of customers and then the brand can be used to
continuously remind the customers about the business.
• Reminds customers about the business’ products and services.
• Marketing buzz can be used to get customers talking about the products and services of a business.
• Engaging with customers gives the business an opportunity to listen to customer feedback to build a stronger
brand.
Formulating a marketing strategy
• Some businesses focus e orts on marketing the brand and not products.
• Some businesses focus e orts on marketing the products and not the brand.
• Some businesses focus e orts on marketing the products and the brand.
• The process to formulate a marketing strategy:
1. Environmental scan
2. De ne target market and Unique Selling Proposition
3. Determine the marketing budget
4. Implement the marketing mix
5. Evaluate the e ectiveness and take corrective measures if necessary
fi ff ff
, Step 1: Environmental scan
• SWOT
• Value chain analysis
Internal
• Resource-based analysis
• USP
• Industry analysis
External • Competitor analysis
• Customer analysis
Industry analysis
• All businesses in the sector the business operates in are analysed.
• Identify opportunities and threats.
Competitor analysis
• Analysing the competitors of the business by evaluating their strengths and weaknesses.
• Market mapping: visual representation of market conditions and trends.
• The position the business holds is plotted on the map to see where they are in comparison to competitors.
High quality and low price High quality and high price
Low quality and low price High quality and low price
Customer analysis
• Business must keep in mind the power of the buyer.
• The business needs to keep in mind the current and potential buyers.
• Assessing the customer base will help identify potential market segments.
• LSM: Living Standard Measurment is a widely used marketing tool that segments the population based on
standard of living.
• The purpose of LSM groupings is:
1. To gain an understanding of di erent market segments.
2. Assess how di erent groups spend their money.
3. Group customers with similar spending patterns.
• Customers in lower LSM groupings have lower disposable income and a lower standard of living.
ff ff
