Summary Business Sudies Chaper 7 (Marketing)

CHAPTER 7
THE MARKETING FUNCTION
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The on-going activities of the business to reach the target market (LSM) and the
methods the business utilises to connect and engage with its target market. The
purpose is to convince the market of the value of the products and/or services, with the
aim of selling these products or services and making a product.



ROLE OF MARKETING AS PART OF THE OVERALL BUSINESS
STRATEGY
STRATEGIC ROLE OF MARKETING
• Strategic planning drives the overall performance of the business. Strategic
planning involves:
- Formulating a vision for the business
- Translating this vision, describe what needs to be done TODAY, to achieve
the vision for the FUTURE
• Strategic role of marketing: creating and supporting a strong and positive
brand identity in the market through a well-planned and well-implemented
marketing strategy

• Vision
• Mission
Strategic planning • Formulating the marketing strategy

• Identify market scope
Marketing
• Determine the USP
strategy: BRAND
IMAGE
• Determine marketing budget

• Marketing of the product/service being offered
Implementing
• Evaluate effectiveness of both the strategy and its
marketing
strategy
implementation



These facts also explain why Marketing is of strategic importance as a function of
business.

• Marketing enables the business to build a brand in the minds of the consumer
and uses this brand to continuously remind the consumers about the business
• Remind consumers about the business’ products/services, so when they need to
buy something, it jumps to mind. Marketing is used to gain and retain customers

, • Most powerful tools of marketing communication is to create a “marketing buzz”
• Engaging with customers gives the business the opportunity to listen to the
customer’s feedback(both good and bad) and helps the business to build a
stronger brand (product/service)



FORMULATING THE MARKETING STRATEGY
• When planning the marketing strategy, three basic, but different approaches
emerge:
- Marketing the overall brand of the business
- Marketing the product/service offering
- Both the business and individual product / service offerings
• Formulate a Marketing Strategy, a five-step process
- Perform an environmental scan
- Define the target market and Unique Selling Proposition (USP)
- Determine the marketing budget
- Implementing the marketing mix
- Evaluate the effectiveness of the process
STEP 1: Perform an environmental scan
The External analysis (Industry, Competitor, Consumer) the relevant external elements
that may affect the overall performance of the business / brand
The Internal analysis (SWOT, Value chain, Resource based, USP)



External Analysis Threats
(industry, competitors,
customers)

Opportunities

Industry analysis
Assessment or scanning of the sector that the business operates in. Identify
opportunities and threats by using the PESTLE elements

Competitor analysis
• Business evaluates the competitors’ strengths and weaknesses in order to
determine the effect these could have on the performance of the business
• Consider Porter’s Six forces Model, competitors my include:
- Level of rivalry in the market
- Threat of new entrants in the market
- Substitute products in the market