Business Breakdown PDF

Potential Exam Questions: Explain how the marketing process allows businesses to achieve their marketing objectives Explain how management responses to influences on marketing affect a business Analyse the relationship between market segmentation and marketing strategies...

Potential Exam Questions: Explain how the marketing process allows businesses to achieve their marketing objectives Explain how management responses to influences on marketing affect a business Analyse the relationship between market segmentation and marketing strategies Evaluate the impact of globalisation on marketing management Key Concepts: 1. Marketing Process: - Situational analysis ( SWOT and Product life cycle ) - Market research - Establishing market objectives - Marketing strategies - product, price, promotion, place - Understand how each stage directly contributes to achieving goals like increased market share or customer loyalty 2. Management responses to influences - External factors - economic conditions, technological advancements, competition - How businesses adapt strategies ( eg diversifying products during recession ) 3. Market segmentation and strategies - How demographic, geographic, psychological and behavioral segmentation allows businesses to tailor strategies like pricing and promotional campaigns - How targeted approach increases efficiency and aligns with customer needs 4. Globalisation impact on marketing management: - Global influences ( standardisation vs customisation ) - Global challenges ( cultural differences, global, competition ) Study Notes: Marketing Process: Situational Analysis: Example SWOT analysis → Product Life Cycle: 1. Situational Analysis 2. Market Research 3. Establishing market objectives 4. Identifying target markets 5. Developing Marketing Strategies 6. Implementation, monitoring and controlling Example product lifecycle → Market Resarch: - Provides insight into customer requirements with respect to product expectations - Data from market research gives insight to: - Who is buying the active products - When they made the purchase - The most popular store locations - Other products purchased at the same time - Allows the marketing team to better understand areas of improvement - Market research process could include; - Determining the information needed - Collecting primary and secondary data - Interpreting the data - A market plan can be expensive to put in place - Thorough research can assist in increased business success Market Objectives: - Marketing objectives can include - Increasing market share, percentage of the entire industry a particular brand or product controls - Expanding the product mix, total range of products that a business offers - Maximising customer service, ability of a business to be able to respond to customer needs - Increasing sales, sales and revenue rise - Increasing profits, caused by increased sales - Vital that the objectives are realistic and measurable Developing market strategies: - Marketing strategies: actions undertakes to achieve the businesses marketing objectives through the marketing mix - Marketing Mix: the combination of the 4 elements of marketing - Product - Place - Promotion - Price - After the 4 P’s have been established, businesses must determine the emphasis it will place on each of the variables - Determined by where the product is in the product life cycle - Product ( goods and/ or services ) involves quality, packaging, design, brand name - Quality - Positioning - Style - Branding - Packaging - Warranty - Price ( the amount of money a customer is prepared to offer in exchange for a product ) involves the consideration of pricing depending on competitors, cost of production and level of customer demand - Price skimming: charging highest price for innovative products - Price Penetration: charges lowest price to achieve a large target market - Loss leader: selling products below cost price to attract customers  - Price lining: selling products at predetermined price. - Promotion ( strategy methods used to inform, persuade, and remind customers about their products ) includes advertising, personal selling/ relationship marketing, sales promotion, publicity and public relations - Personal Selling: creating sales by 2 way communication between business and customer - Relationship marketing: development of long term cost effective and strong relationships with customers to create customer loyalty - Sales promotion: use of activities and material as inducements to customers ( coupons, gifts with purchase… ) - Communication process: communicate clearly and effectively with customers to influence buying behaviour - Place/ Distribution ( ways of the product getting to the customer ) concerned with how products are transported from business to customer -Distribution channels: - Direct: producer sells product directly to customer - Indirect: when the producer sells through wholesalers/ retailers - Intensive Distribution: seeks to have goods sold in as many locations possible - Selective channel choice: limits the number of locations - Exclusive distribution: sold in only one location Management responses to influences: Acronym: Every Thought Counts, So Live Carefully. ( ETCSLC ) - Economic influences: inflation, consumer spending trends - adjusting pricing strategies, - improved financial performance - Technological influences - Adopting digital marketing platforms - Engagement and efficiency - Data analytics - Increased market reach - Competitive influences: - Better market positioning and customer retention - Increase market share - Developing unique selling points - Social influences - Aligning campaigns with societal values and trends ( sustainability or diversity ) - Increased brand loyalty and customer trust - Legal influences: - Avoidance of fines and legal disputes ( advertising laws, consumer rights protection, ethical standards ) - Reputation harm - Ensures long term stability - Cultural influences - Tailoring promotion strategies and products to meet diverse cultural expectations - Expanded market opportunities - Improved customer satisfaction Relationship between market segmentation and marketing strategies: Acronym: DEFECTS Defining Target Markets; - Market segmentation divides broader market into specific groups based on characteristics ( demographics, behaviour ) - Enables businesses to focus their efforts on defined audiences Tailoring Strategies: - Customised to suit the needs/ preferences of each market segment - Ensures relevance and effectiveness in product, place, promotion and price Efficient resource allocation: - By targeting segments, businesses can allocate resources more effectively - Reduces wast on broad, untargeted campaigns Competitive Advantage: - Understanding and addressing the unique demands of each segment can differentiate a business from its competitors - Fosters customer loyalty and satisfaction Enhanced profitability: - Result in higher conversion rates and customer retention - Driving greater revenue from identified segments Feedback Loop: - Insights gained from market segmentation inform continuous improvement of marketing strategies - Ensures aligned customer needs are aligned Strategic alignment: - Relationship between segmentation and strategies ensure cohesive marketing efforts - Contributing to overall business objectives Impact of Globalisation of marketing management Acronym: BESTESICC Increased market opportunities: - Access to global markets - Expands customer bases - Increases revenue streams Standardisation vs customisation: - Businesses must balance standardised marketing strategies for efficiency and customised approaches - Suits local preferences and cultural differences Enhanced competition: - Exposure to international markets - INtensifies competition - Drives innovation and need for differentiation Cultural sensitivity: - Must account for cultural distinctions - Ensure campaigns resonate with diverse audiences & avoid miscommunication Technological advancements: - Digital platforms enable market globalisation - Marketing managers require to adopt global online strategies ( social media, e commerce ) Supply chain considerations: - Requires marketing alignment with international logistics - Suppy chain management for effective product availability Economic and Political factors; - Must adapt to changes in exchange rates, trade regulations and geopolitical conditions Brand consistency: - Must ensure brand messaging remains consistent - Being adaptable to local markets Cost Implications: - Involves higher costs for research, distribution and compliance with international standards