Summary MARKETING: IEB-Ready Business Studies Notes

Chapter‌‌7‌-‌‌‌Marketing‌‌Function‌ ‌
‌
- On-going‌‌activities‌‌to‌‌reach‌‌the‌‌target‌‌market‌(‌ Living‌‌Standards‌‌Measurement‌‌LSM)‌‌‌in‌‌
order‌‌to‌‌connect‌‌and‌‌engage‌‌with‌‌the‌‌target‌‌market‌ ‌
- Purpose‌‌is‌‌to‌‌convince‌‌the‌‌market‌‌of‌‌the‌‌value‌‌of‌‌the‌‌business’s‌‌products‌‌or‌‌services‌‌
with‌‌the‌‌aim‌‌of‌‌selling‌‌them‌‌to‌‌generate‌‌a‌‌profit‌ ‌
‌
1. Business‌‌Strategy:‌‌Role‌‌of‌‌Marketing‌ ‌
- Strategic‌‌planning‌‌drives‌‌the‌‌overall‌‌performance‌‌of‌‌the‌‌business,‌‌includes:‌ ‌
- Formulating‌‌a‌‌vision‌‌(where‌‌the‌‌business‌‌should‌‌be‌‌in‌‌the‌‌future)‌ ‌
- Translating‌‌the‌‌vision‌‌into‌‌the‌‌mission‌‌statement,‌‌in‌‌order‌‌to‌‌reach‌‌the‌‌
vision‌ ‌
‌
Brand‌‌i‌s‌‌the‌‌perception‌‌of‌‌the‌‌business‌‌by‌‌the‌‌public.‌ ‌
‌
- Strategic‌‌role‌‌of‌‌marketing‌‌is:‌ ‌
- Creating‌‌and‌‌supporting‌‌a‌‌strong‌‌and‌‌positive‌‌brand‌‌identity‌‌in‌‌the‌‌market‌‌
through‌‌a‌‌well-planned‌‌and‌‌well-implemented‌‌marketing‌‌strategy‌ ‌
‌




‌
‌
- Marketing‌‌enables‌‌the‌‌business‌‌to‌‌build‌‌a‌‌brand‌‌in‌‌the‌‌minds‌‌of‌‌consumers‌‌and‌‌
uses‌‌this‌‌brand‌‌to‌‌remind‌‌consumers‌‌about‌‌the‌‌business‌ ‌

, - Marketing‌‌helps‌‌remind‌‌consumers‌‌about‌‌the‌‌business’s‌‌products/‌‌services‌‌so‌‌
that‌‌it‌‌jumps‌‌to‌‌their‌‌mind‌‌when‌‌they‌‌need‌‌a‌‌particular‌‌product/‌‌service‌ ‌
- Marketing‌‌=‌‌gain‌‌and‌‌retain‌‌customers‌ ‌
- Powerful‌‌communication‌‌tool‌‌=‌m ‌ arketing‌‌buzz‌‌‌where‌‌the‌‌business‌‌wants‌‌
consumers‌‌to‌‌talk‌‌about‌‌its‌‌products/‌‌service‌ ‌
- Stronger‌‌awareness‌‌means‌‌the‌‌consumer‌‌is‌‌more‌‌likely‌‌to‌‌use‌‌the‌‌brand‌‌
for‌‌future‌‌reference‌=
‌ ‌‌more‌‌sales‌ ‌
- Engaging‌‌with‌‌customers‌‌through‌‌marketing‌‌gives‌‌the‌‌business‌‌an‌‌opportunity‌‌to‌‌
listen‌‌to‌‌feedback‌‌(good‌‌or‌‌bad)‌‌and‌‌build‌‌an‌‌even‌‌stronger‌‌brand‌ ‌
‌
1.1‌‌Formulating‌‌the‌‌Marketing‌‌Strategy‌ ‌
- Many‌‌different‌‌approaches‌ ‌
- Overall‌‌brand‌‌marketing‌‌‌where‌‌focus‌‌is‌‌on‌‌the‌‌brand‌‌and‌‌less‌‌on‌‌the‌‌
individual‌‌products‌‌and‌‌services‌‌ ‌
- Eg.‌‌LG‌ ‌
- Marketing‌‌the‌‌product/‌‌service‌‌offering‌‌‌where‌‌focus‌‌is‌‌less‌‌on‌‌the‌‌
brand‌‌but‌‌rather‌‌the‌‌individual‌‌products‌‌and‌‌services‌ ‌
- Eg.‌‌Famous‌‌Brands‌‌Wimpy‌ ‌
- Both‌‌brand‌‌and‌‌individual‌‌product/‌‌service‌‌offering‌w ‌ here‌‌focus‌‌is‌‌on‌‌
both‌‌elements‌ ‌
- Eg.‌‌Revlon‌‌hair‌‌appliances‌‌and‌‌Revlon’s‌‌brand‌‌Max‌‌Factor‌ ‌
- Five‌‌step‌‌process:‌ ‌
1. Perform‌‌environmental‌‌scan‌ ‌
2. Define‌‌target‌‌market‌‌and‌‌Unique‌‌Selling‌‌Proposition‌‌(USP)‌ ‌
3. Determine‌‌marketing‌‌budget‌ ‌
4. Implement‌‌marketing‌‌mix‌‌to‌‌achieve‌‌marketing‌‌strategy‌‌aims‌ ‌
5. Evaluate‌‌the‌‌effectiveness‌‌of‌‌the‌‌process‌‌and‌‌put‌‌the‌‌corrective‌‌
measures‌‌in‌‌place‌‌if‌‌necessary‌ ‌
Step‌‌1:‌‌Environmental‌‌Scanning‌‌(external‌‌&‌‌internal)‌‌(overall‌‌market‌‌scope).‌ ‌
‌




‌
‌
- External‌‌Analysis‌‌f‌ocuses‌‌on‌‌the‌‌relevant‌‌external‌‌elements‌‌that‌‌may‌‌impact‌‌
the‌‌business/‌‌brand‌ ‌
- Identify‌‌possible‌‌opportunities‌‌and‌‌threats‌‌as‌‌part‌‌of‌‌strategic‌‌planning‌‌to‌‌
asses‌‌the‌‌possible‌‌impact‌ ‌
A. Industry‌‌Analysis‌ ‌

, - Assessment‌‌or‌‌scanning‌‌of‌‌the‌‌sector‌‌where‌‌the‌‌business‌‌operates‌‌with‌‌a‌‌
purpose‌‌to‌‌identity‌‌opportunities‌‌or‌‌threats‌‌by‌‌using‌‌PESTLE‌‌elements‌ ‌
B. Competitor‌‌Analysis‌‌ ‌
- Overall‌‌picture‌‌of‌‌all‌‌the‌‌competitors‌‌in‌‌the‌‌market‌ ‌
- Critical‌‌to‌‌evaluate‌‌the‌‌competitor’s‌‌strengths‌‌and‌‌weaknesses‌‌in‌‌order‌‌to‌‌
determine‌‌the‌‌effect‌‌these‌‌may‌‌have‌‌on‌‌the‌‌the‌‌business’‌‌performance‌‌ ‌
- Adapt‌‌the‌‌marketing‌‌efforts‌‌accordingly‌ ‌
- Consider‌‌Porter’s‌‌Six‌‌Forces:‌ ‌
- Level‌‌of‌‌rivalry‌‌in‌‌the‌‌market‌ ‌
- Threat‌‌of‌‌new‌‌entrants‌‌in‌‌the‌‌marke‌ ‌
- Power‌‌of‌‌substitute‌‌products‌ ‌
Market‌‌Mapping‌ ‌
- Market‌‌map‌‌is‌‌a‌‌visual‌‌representation‌‌of‌‌market‌‌conditions/‌‌trends‌ ‌
- The‌‌position‌‌that‌‌the‌‌different‌‌competitors‌‌hold‌‌are‌‌plotted‌‌onto‌‌a‌‌map‌‌to‌‌
identify‌‌its‌‌own‌‌position‌‌within‌‌the‌‌marketplace‌‌relative‌‌to‌‌the‌‌competitors‌ ‌
- Once‌‌the‌‌position‌‌is‌‌known,‌‌all‌‌marketing‌‌efforts‌‌(7Ps‌‌of‌‌marketing‌‌mix)‌‌
should‌‌be‌‌aimed‌‌towards‌‌creating,‌‌maintaining‌‌or‌‌gaining‌‌a‌‌competitive‌‌
advantage‌‌ ‌
C. Customer‌‌Analysis‌ ‌
- Power‌‌of‌‌the‌‌buyer‌‌(Porter’s)‌ ‌
- Business‌‌should‌‌look‌‌at‌‌both‌‌current‌‌and‌‌potential‌‌customers‌‌to‌‌see‌‌
where‌‌their‌‌needs‌‌are‌‌not‌‌satisfied‌ ‌
- Analysing‌‌the‌‌customer‌‌base‌‌helps‌‌the‌‌business‌‌identify‌‌the‌‌potential‌‌
market‌‌segmentations‌‌(LSM-groupings‌‌or‌‌Living‌‌Standards‌‌
Measurement)‌ ‌
- LSM:‌‌‌Widely-used‌‌tool‌‌for‌‌marketing‌‌research‌ ‌
- Allows‌‌for‌‌market‌‌segmentation‌‌of‌‌the‌‌general‌‌public‌‌based‌‌on‌‌29‌‌
specific‌‌variables‌ ‌
- Each‌‌variable‌‌is‌‌multiplied‌‌with‌‌a‌‌weighting‌‌and‌‌a‌‌score‌‌is‌‌
calculated‌‌which‌‌determines‌‌the‌‌grouping‌ ‌
- Purpose‌o ‌ f‌‌the‌‌LSM‌‌Groupings:‌‌(LSM‌‌1‌‌-‌‌10)‌ ‌
- Gain‌‌understanding‌‌of‌‌different‌‌market‌‌segments‌ ‌
- Assess‌‌how‌‌these‌‌groups‌‌spend‌‌their‌‌money‌‌and‌‌
disposable‌‌income‌‌with‌‌regards‌‌to‌‌their‌‌needs‌‌and‌‌wants‌ ‌
- Group‌‌customers‌‌with‌‌similar‌‌spending‌‌patterns‌ ‌
- Lower‌‌LSM‌‌Group‌‌=‌‌lower‌‌disposable‌‌income‌‌and‌‌standard‌‌of‌‌
living‌ ‌
- Higher‌‌LSM‌‌Group‌‌=‌‌higher‌‌level‌‌of‌‌disposable‌‌income‌‌and‌‌
standard‌‌of‌‌living‌ ‌
- Groupings‌‌help‌‌marketing‌‌function‌‌have‌‌a‌‌clear‌‌understanding‌‌of‌‌
the‌‌particular‌‌target‌‌market‌‌and‌‌the‌‌specific‌‌needs‌‌and‌‌wants‌‌of‌‌
his‌‌market‌‌segment‌ ‌
‌