MNM 3709
Self Assessment Questions
Study unit 1 - The Nature of Strategic Marketing
1. Identify the various strategy levels in an organisation.
Corporate strategy - The organization's sense of purpose.
Business strategy - Managing a specific division or business unit.
Market strategy - The marketing management's contribution to formulating the business
strategy.
Functional strategy - is equivalent to the marketing strategy.
SG pg 3
2. Explain by means of practical examples the functioning of SBUs
SBUs are distinct businesses set up as units in a larger company to ensure that a
certain product or product line is promoted and handled as though it was an
independent business. SBUs direct their product offering at a particular market and
supervise the manufacturing, distribution and marketing communication with a degree of
autonomy.
TB pg 10
An example would be Pick n Pay, they have many SBU’s such as hypermarkets,
supermarkets, family franchise stores, butcheries and financial services.
SG pg 4
3. Explain how strategic marketing management and retail marketing
management differ.
Differences Strategic marketing Marketing management
Mission Deals with the actions of the Deals with marketing activities
SBUs of the specific SBU
Nature of job Necessitates a high degree Necessitates maturity,
of originality and innovation familiarity and control
Leadership style Requires a practical Requires a spontaneous
viewpoint viewpoint
, Orientation Inductive and instructive Deductive and logical
Time frame Long term Day to day
Decision process Mainly bottom up Mainly top down
Organisational behaviour Attains synergy between Pursues interests of the
various components of the decentralised unit
organisation, both
horizontally and vertically
Opportunity sensitivity Ongoing Ad hoc
Relationship with the A close relationship is Relationship is less clear
financial function sustained
Relationship with the Environment considered Environment considered stable
environment ever changing and active with infrequent instability
TB pg 12
Study unit 2 - Analysing the macro-environment
1. Discuss the characteristics of the macro-environment. NB Nov 2010 exam
The ever changing nature of the external environment
The external environment is dynamic, resulting in an environment that is prone to
regular transformation due to unlimited sources of change. The fact that this
environment is not controllable and very temperamental makes it difficult for
management to monitor, let alone keep up to date, and to predict and understand future
occurrences.
The impact of external forces on the external environment
The magnitude and size of the external environment and variables in this environment
may result in management not being aware of warning signs that change is taking place
and there may be a possibility of major events until it has happened.
The overwhelming state of external variables
A business or organisation has virtually no power or influence when it comes to forces
that impact the on the organisation in the external environment. The best management
can hope for is to be prepared for any eventuality, to have plans in place to reduce the
, impact of such changes or threats and to turn threats into opportunities for the
organisation.
TB pg 18
2. Explain, by means of practical examples, the impact of the dimensions of the
macro environment on a business. NB Nov 2010 exam
The technology dimension
This dimension is affected by innovation and change. For example, new manufacturing
processes and new technology may influence the type and quality of clothing being
sold by Mary Jones. Just think of the new types of material available, such as those
combining natural and synthetic fibres to create crease-resistant material.
Technology provides opportunities and threats, which impact on society to a greater or
lesser extent. Recognising that the impact of technology is inevitable, therefore, the
marketing planner should pay attention to the following areas:
- the accelerating pace of technological change
- unlimited innovation opportunities
- higher research and development budgets
- a concentration of effort in some industries on minor product improvements
- a greater emphasis on the regulation of technological change
Governmental or legal dimension
The political or institutional environment, should be a particular concern to Mary Jones.
Her business has to be aware of the laws and regulations that regulate business, as it
has to abide by them. One example of the effect of this variable would be the
surcharges on imported material, since these will directly influence the selling price of
the clothing in Mary's boutique.
Economic dimension
The economy is probably the best known dimension of the macro-environment.
Changes in the economic conditions of a country affect all consumers and businesses.
An increase in the inflation rate, changes in the exchange rate and a higher rate of
personal tax are examples of how the economic environment may influence Mary's
boutique.
Social/cultural dimension
The social/cultural dimension is strongly influenced by the economy and technology.
Social trends directly affect the marketing strategies of the business as they determine
consumer needs and purchasing decisions. These trends include cultural values and
Self Assessment Questions
Study unit 1 - The Nature of Strategic Marketing
1. Identify the various strategy levels in an organisation.
Corporate strategy - The organization's sense of purpose.
Business strategy - Managing a specific division or business unit.
Market strategy - The marketing management's contribution to formulating the business
strategy.
Functional strategy - is equivalent to the marketing strategy.
SG pg 3
2. Explain by means of practical examples the functioning of SBUs
SBUs are distinct businesses set up as units in a larger company to ensure that a
certain product or product line is promoted and handled as though it was an
independent business. SBUs direct their product offering at a particular market and
supervise the manufacturing, distribution and marketing communication with a degree of
autonomy.
TB pg 10
An example would be Pick n Pay, they have many SBU’s such as hypermarkets,
supermarkets, family franchise stores, butcheries and financial services.
SG pg 4
3. Explain how strategic marketing management and retail marketing
management differ.
Differences Strategic marketing Marketing management
Mission Deals with the actions of the Deals with marketing activities
SBUs of the specific SBU
Nature of job Necessitates a high degree Necessitates maturity,
of originality and innovation familiarity and control
Leadership style Requires a practical Requires a spontaneous
viewpoint viewpoint
, Orientation Inductive and instructive Deductive and logical
Time frame Long term Day to day
Decision process Mainly bottom up Mainly top down
Organisational behaviour Attains synergy between Pursues interests of the
various components of the decentralised unit
organisation, both
horizontally and vertically
Opportunity sensitivity Ongoing Ad hoc
Relationship with the A close relationship is Relationship is less clear
financial function sustained
Relationship with the Environment considered Environment considered stable
environment ever changing and active with infrequent instability
TB pg 12
Study unit 2 - Analysing the macro-environment
1. Discuss the characteristics of the macro-environment. NB Nov 2010 exam
The ever changing nature of the external environment
The external environment is dynamic, resulting in an environment that is prone to
regular transformation due to unlimited sources of change. The fact that this
environment is not controllable and very temperamental makes it difficult for
management to monitor, let alone keep up to date, and to predict and understand future
occurrences.
The impact of external forces on the external environment
The magnitude and size of the external environment and variables in this environment
may result in management not being aware of warning signs that change is taking place
and there may be a possibility of major events until it has happened.
The overwhelming state of external variables
A business or organisation has virtually no power or influence when it comes to forces
that impact the on the organisation in the external environment. The best management
can hope for is to be prepared for any eventuality, to have plans in place to reduce the
, impact of such changes or threats and to turn threats into opportunities for the
organisation.
TB pg 18
2. Explain, by means of practical examples, the impact of the dimensions of the
macro environment on a business. NB Nov 2010 exam
The technology dimension
This dimension is affected by innovation and change. For example, new manufacturing
processes and new technology may influence the type and quality of clothing being
sold by Mary Jones. Just think of the new types of material available, such as those
combining natural and synthetic fibres to create crease-resistant material.
Technology provides opportunities and threats, which impact on society to a greater or
lesser extent. Recognising that the impact of technology is inevitable, therefore, the
marketing planner should pay attention to the following areas:
- the accelerating pace of technological change
- unlimited innovation opportunities
- higher research and development budgets
- a concentration of effort in some industries on minor product improvements
- a greater emphasis on the regulation of technological change
Governmental or legal dimension
The political or institutional environment, should be a particular concern to Mary Jones.
Her business has to be aware of the laws and regulations that regulate business, as it
has to abide by them. One example of the effect of this variable would be the
surcharges on imported material, since these will directly influence the selling price of
the clothing in Mary's boutique.
Economic dimension
The economy is probably the best known dimension of the macro-environment.
Changes in the economic conditions of a country affect all consumers and businesses.
An increase in the inflation rate, changes in the exchange rate and a higher rate of
personal tax are examples of how the economic environment may influence Mary's
boutique.
Social/cultural dimension
The social/cultural dimension is strongly influenced by the economy and technology.
Social trends directly affect the marketing strategies of the business as they determine
consumer needs and purchasing decisions. These trends include cultural values and
