Marketing Chapter 7 - Page 90 to 112 PDF

Marketing Chapter 7 – Page 90 to 112 This Photo by Unknown Author is licensed under CC BY Grd 12 BUSINESS 1 STUDIES  The Marketing Function...

Marketing Chapter 7 – Page 90 to 112 This Photo by Unknown Author is licensed under CC BY Grd 12 BUSINESS 1 STUDIES  The Marketing Function ‘The on-going activities of the business to reach the Definition target market (LSM) and the methods the business utilises to connect and engage with its target market.’ Brand: is the perception of the business. Everything the business does, will have a impact on the perception/brand. Strategic planning of marketing: Creating a strong + positive brand identity in the market through a well-planned marketing strategy (including the marketing mix – 7P’s) Grd 12 BUSINESS 2 STUDIES  The aims of the marketing function ∙ To increase the market share. ∙ Broaden the target market. ∙ Opportunity to grow and improve profitability. Income groups Market Segmentation Similar Cultural ages Target Segmentation: Living Standards Measure (LSM). It is a means of Market segmenting the South African Segments Product Geographical regions market that cuts across race, use gender, age or any other variable used to categorise people. Instead, it groups people according to their living Lifestyle Gender standards Grd 11 Pg. 94 BUSINESS STUDIES 3  Role of marketing as part of the overall business strategy: Strategic role of marketing Why Marketing is of strategic importance/advantages: Vision Mission Build a brand to remind consumers of them Strategic Formulating the marketing Is used to gain and retain customers planning strategy Builds strong product awareness (marketing buzz), increasing sales. Listen to customer feedback – build stronger brand Identify the overall market scope Determine the USP Marketing Determine the marketing budget strategy: BRAND IMAGE Marketing of the product / service Implementing Evaluate the effectiveness marketing strategy Grd 12 BUSINESS 3 STUDIES  Formulating the Marketing strategy: Five-step process to formulate a marketing strategy: 1. Perform an 2. Define the 3. Determine 4. Implement 5. Evaluate environmental target market the marketing the marketing the scan and Unique budget mix to achieve effectiveness Selling the aims and take Proposition corrective (USP) measures http://creativepossibility.com.au/marketing-help-for-small-business/ Grd 12 BUSINESS 4 STUDIES Step 1: The overall market scope is investigated by performing an Environmental scan: Internal Analysis (SWOT, External Analysis (Industry, Competitor, Consumer) Value chain, Resource based, USP) Environmental scan Threats External Analysis (Industry, competitors, customers) Opportunities Grd 12 BUSINESS 5 STUDIES A - Industry analysis: Ext ern Scanning of the sector that the business al An operated in (assessing fuel industry) High Quality alys i s Woolworths B - Competitor analysis: Porters Five – to gain overall picture of competitors in the market. PnP Low Price High Price C - Customer analysis: Customer feedback – to ensure current and potential Market Mapping: Some customers needs and wants products are satisfied from “China mall” Low Quality Market Mapping: Visual representation of market conditions/trends Grd 12 IdentifyBUSINESS own position and adapt marketing mix 7 to gainSTUDIES competitive advantage.  Define the target market and Unique Selling Proposition (USP) Step 2: Once internal and external environments have been analysed WHY they would buy OUR Consider WHAT the target product / service instead of market (customers) need supporting the competitors USP based on factors such as: Cost Brand identity Incorporation of technology Quality Grd 12 BUSINESS 7 STUDIES Step 3: Determine the marketing budget https://www.marketing-mojo.com/blog/maximizing-your-adwords- budget/ http://www.artkitektur.com/ Grd 12 BUSINESS 8 STUDIES Step 4: Implement the marketing mix to achieve the aims Traditionally marketing four Ps: 3 Additional Marketing mix (4 Ps) P’s added to the mix Product Price Place Promotion People policy policy (distribution) policy Physical evidence Processes Sales Advertising Personal sales Publicity promotion Marketing communication mix Grd 12 BUSINESS 9 STUDIES  PRODUCT What type of product (or service) is being sold? Convenience goods Select goods Speciality goods Services The life cycle of the product: https://www.familydollar.com/products-services http://www.maxi-pedia.com/product+life+cycle+plc Page Grd 12 BUSINESS 11 96 STUDIES  PRICE “The monetary value of a product or service.” Pricing strategies: Market penetration pricing: Sell product at lower price to attract more new customers. Leader pricing Reduce cost of complementary product to get customers to come and shop. Promotional pricing Discounts or even increase prices during special events. Bulk discount, when buying large quantities Prestige pricing, paying more for the product. Grd 12 BUSINESS 11 STUDIES  PLACE or DISTRIBUTION The way in which the manufacturer gets the product to the consumer: Supply chain/ Value chain analysis http://www.kiveand.com/direct/direct-marketing-diagram Intensively distributed Selectively distributed Exclusively distributed Grd 12 BUSINESS 12 STUDIES  PROMOTION or MARKETING COMMUNICATION Four elements to the marketing communication mix: A - Advertising B - Personal selling C - Sales Promotion D - Publicity Grd 12 BUSINESS 13 STUDIES Because the employee is the PEOPLE face of the business, the business must make certain that there are sufficient control mechanisms in place, to ensure contact employees will protect and promote the brand and the reputation of the business. http://www.gallup.com/businessjournal/163196/getting-employee-cus tomer-encounter.aspx The attitude, behaviour, skill, moral and motivation levels of employees will effect the service experience. Promote the brand and reputation of the business. Grd 12 BUSINESS 14 STUDIES  PHYSICAL EVIDENCE The physical evidence associated purely with service includes factors such as the store’s presentation, the appearance of the staff members and even the website. http://www.femalemag.com.sg/fashion/9-trendy-new-fashion-and-beauty-stores-open-in-viv ocity/ PROCESS Refers to the operating systems and procedures that must be designed and managed to make the service experience as pleasant as possible for the customer. From entering the forecourt to exiting. Grd 12 BUSINESS 15 STUDIES Step 5: Evaluate the effectiveness and take corrective measures: Once the marketing strategy has been implemented, it is important to evaluate and review the process in order to identify performance gaps. http://www.smallbiztechnology.com/archive/2012/11/9-methods-for-evaluating-developers-before- you-hire-them.html/#.WFrGfFN97IU Grd 12 BUSINESS 16 STUDIES  1.3 Interdependence of Marketing with key business functions The different business functions cooperate and collaborate to create synergy in the business. Financial function makes funds available to employ staff, buy inventory and to run the marketing campaign Purchasing department buys inventory, ensures the Production function availability of the correct manufactures products that will quality and quantity at the be advertised by the marketing time that the production function. This will generate profit department needs material that can be used to pay salaries and the marketing campaign and run the business. is committed to deliver Human Capital function employs and trains staff to ensure the Marketing function promotes the correct skills in the business to products / services perform all tasks and pays them fair salaries Grd 12 BUSINESS 17 STUDIES  The Consumer Protection Act (CPA) Ethics in Franchising marketing Influences on marketing The Branding Buying-decis ion-model Grd 12 BUSINESS 18 STUDIES  Impact of the Consumer Protection Act (CPA) on The marketing Consumer Protection Act (CPA) 1: Right to Equality in the Market and Protection against Discriminatory Marketing Practices. 2: Right to Privacy 3: Right to Choose Purpose of Act: CPA 4: Right to Disclosure of Information Protect the right of consumers, by ensuring the seller acts in a fair 5: Right to Fair and Responsible Marketing manner. 6: Right to Fair and Honest Dealing 7: Right to Fair, Just and Reasonable Terms and Conditions CPA stipulates certain required behaviour in marketing. 8: Right to Fair Value, Good Quality and Safety AIM: to safeguard the consumers’ 9: Right to Accountability from Suppliers right to receive a fair deal from businesses. Grd 12 BUSINESS 19 STUDIES  Ethical vs. unethical marketing Ethics in marketing Unethical advertising: Materialism Giving products deceptive names Selling second-hand goods as new goods. Any competitive advertising is illegal Using unacceptable language, discriminating against the disabled or being racist. https://www.tes.com/lessons/dEqXhzdroda4lg/advertising-ethics Grd 12 BUSINESS 20 STUDIES  Factors influencing the buying decision: The stimulus-response model of buyer behaviour. The Buying-decis Buyer receives a ion-model stimulus: Buyer processes stimuli: - 7 Ps of marketing - Recognise problem - Economic - Search for information - Political - Evaluate different alternatives -Technological - Make a purchase decision Post purchase: ∙ the product choice - Negative ∙ brand choice - Neutral ∙ retailer choice ∙ when to buy the product - Positive ∙ how much he/ she will spend. Refer to Page Personal Psychological Social Economic 103 characteristics factors factors factors Grd 12 BUSINESS 21 STUDIES  Branding: Name of the product, the trademark or image Branding https://www.legistify.com/blogs/view_detail/Why-is-it-necessary-to-get-a-trademark-do ne%3F Forms of trademarks: ∙ Manufacturer’s trademarks Brand extension: use exciting brand a launch a new product in same ∙ individual trademarks. market. ∙ Retailer’s trademarks Brand stretching: use exciting brand to launch a product in unrelated market. Grd 12 BUSINESS 22 STUDIES  Branding From the marketing perspective: Guarantee of quality helps to advertise and increase sales Advantages of a strong brand: Less price sensitive/ charge higher price From the consumer’s perspective: Brand preference can help business to dominate the Helps identify the product market. Feel safe and re-assured / quality Well-established brand makes it easier to add new Attraction of prestige or status products Trademark is registered, gives legal protection Brand Consistency Distinct voice Clear Identity trust Intimacy with customers Grd 12 BUSINESS 23 STUDIES Franchising: from a marketing point of view Franchising Refer to http://www.gaebler.com/News/Franchising/Restaurant-Brands-Seek-Growth-with-New- Franchising-Strategies-900000861.htm Page 110 for details on Franchising Grd 12 BUSINESS 24 STUDIES