Self-Study Notes
Created by Chantelle. B
Chapter 7 – The Marketing Function
Marketing
à Ongoing activities of business to reach target market/ methods utilised to
connect/ engage with target market
Purpose of engagement:
convince market of value of products /services with aim of selling to make profit
Role of marketing as part of overall business strategy:
à Strategic planning drives overall performance
Involves:
à Formulating Vision & Mission
- “A brand for a company is like a reputation for a person”
Marketing enables business to build brand in minds of consumers ---> continuously used to remind
consumers of business
- Marketing reminds consumers of products/ services ---> when they need to buy something
particularly, the business jumps to mind
---> GAIN and RETAIN consumers
- Create “marketing buzz” around product/ service (business wants consumers to talk about product)
---> stronger awareness = brand name used for future reference= MORE SALES
- ENGAGING with customers gives business customers feedback ---> build a stronger brand
Distribution of this document is illegal 1
, Self-Study Notes
Created by Chantelle. B
Formulating Marketing Strategy
3 basic approaches:
1. Marketing overall brand, little time and effort on individual products/services
2. Marketing product/service offering, not spending too much time on overall brand
3. Emphasis on both business and individual product/service offering
Five-step process for marketing strategy
1. Perform an environmental scan
à Process of obtaining info about possible/current/future events that’ll impact performance
à Identify challenges and opportunities
External Analysis:
à Focuses on external elements that may affect performance
à Important business identifies possible opportunities & threats to assess possible impact
A. Industry Analysis
à Scanning of sector business operates in ---> identify opportunities & threats ---> PESTLE
B. Competitor Analysis
à Gives overall picture of competitors in market
à Must evaluate competitors’ strengths and weaknesses ---> determine effect on performance
à MUST ADAPT TO EFFECTS ON PERFORMANCE
Porters Six Forces Model:
à Level of rivalry
à Threat of new entrants
à Substitute products (indirect competition)
Market mapping:
à Visual representation of market conditions/ trends
à Positions competitors hold is plotted on map ---> helps identify position of own business
à Once own position is known, all 7P’s will be used towards creating, maintaining, gaining
competitive advantage
C. Consumer Analysis
à Keep in mind power of buyer (porters)
à Business MUST look at current & potential customers to see where their needs
aren’t satisfied
à Analyse customer base ---> helps identify potential market segmentations (LSM- groupings)
à LSM tool allows segmentation of general public
Internal Analysis:
à SWOT Analysis
à Value Chain
à Resource Based Analysis
Distribution of this document is illegal 2
Created by Chantelle. B
Chapter 7 – The Marketing Function
Marketing
à Ongoing activities of business to reach target market/ methods utilised to
connect/ engage with target market
Purpose of engagement:
convince market of value of products /services with aim of selling to make profit
Role of marketing as part of overall business strategy:
à Strategic planning drives overall performance
Involves:
à Formulating Vision & Mission
- “A brand for a company is like a reputation for a person”
Marketing enables business to build brand in minds of consumers ---> continuously used to remind
consumers of business
- Marketing reminds consumers of products/ services ---> when they need to buy something
particularly, the business jumps to mind
---> GAIN and RETAIN consumers
- Create “marketing buzz” around product/ service (business wants consumers to talk about product)
---> stronger awareness = brand name used for future reference= MORE SALES
- ENGAGING with customers gives business customers feedback ---> build a stronger brand
Distribution of this document is illegal 1
, Self-Study Notes
Created by Chantelle. B
Formulating Marketing Strategy
3 basic approaches:
1. Marketing overall brand, little time and effort on individual products/services
2. Marketing product/service offering, not spending too much time on overall brand
3. Emphasis on both business and individual product/service offering
Five-step process for marketing strategy
1. Perform an environmental scan
à Process of obtaining info about possible/current/future events that’ll impact performance
à Identify challenges and opportunities
External Analysis:
à Focuses on external elements that may affect performance
à Important business identifies possible opportunities & threats to assess possible impact
A. Industry Analysis
à Scanning of sector business operates in ---> identify opportunities & threats ---> PESTLE
B. Competitor Analysis
à Gives overall picture of competitors in market
à Must evaluate competitors’ strengths and weaknesses ---> determine effect on performance
à MUST ADAPT TO EFFECTS ON PERFORMANCE
Porters Six Forces Model:
à Level of rivalry
à Threat of new entrants
à Substitute products (indirect competition)
Market mapping:
à Visual representation of market conditions/ trends
à Positions competitors hold is plotted on map ---> helps identify position of own business
à Once own position is known, all 7P’s will be used towards creating, maintaining, gaining
competitive advantage
C. Consumer Analysis
à Keep in mind power of buyer (porters)
à Business MUST look at current & potential customers to see where their needs
aren’t satisfied
à Analyse customer base ---> helps identify potential market segmentations (LSM- groupings)
à LSM tool allows segmentation of general public
Internal Analysis:
à SWOT Analysis
à Value Chain
à Resource Based Analysis
Distribution of this document is illegal 2
