BSBMKG502B – Implement and monitor marketing activities

Presentation Five

Tuning the marketing mix

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AN OVERVIEW OF MARKETING

WHO? The prospects: customers and competitors

WHAT? The product/service

WHERE? The location of premises and markets

WHY? The customers’ buying motives and needs

WHEN? The right product/service at the right place, at the right time

HOW? Production, distribution and promotion

HOW MUCH? The price customers will pay. What the business wants to spend. The profit you will make.

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THE MARKETING PROCESS

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MARKET SEGMENTATION:IDENTIFYING YOUR TARGET MARKET

There are two types of broad markets which help form the basis for identifying which market(s) your business will grow to serve.

The industrial market: this market is made up of organisations and businesses, and involves business-to-business marketing.

The consumer market: this market consists of all individuals who make up the population.

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MARKET SEGMENTATION

Market segmentation is the process of dividing a market into

distinguishable segments, in order to identify customer characteristics

and prepare a customer profile.

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TYPES OF MARKET SEGMENTATION WITHIN THE CONSUMER MARKET

A market segment is a group of customers related by some common characteristic(s). Geographic segmentationDemographic segmentationPsychographic segmentationOperational variables

segmentation

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MARKET SEGMENTATION

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CUSTOMER PROFILEIn profiling your customers, you should be attempting to answer the following questions.

Who are the customers?

What do they typically buy and how do they hear about it?

How often do they buy?

How can my new product/service meet the customers’ needs?

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GOOD MARKETING

Good marketing will maximise your chances of obtaining the two best types of business.

Repeat business: customers who are pleased with your product/service and therefore return to your business.

Referral business: customers

who recommend your

product/service to others.

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CONDUCTING A SWOT ANALYSIS

An essential part of market research is understanding your current market position. One effective means of assessing this position is to conduct a SWOT analysis.

SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. The purpose of conducting a SWOT analysis of your business, is to determine your business venture’s strengths and weaknesses, and identify and evaluate opportunities and threats in the market place.

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EXAMPLE OF A SWOT ANALYSIS

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SWOT ANALYSISBased on the SWOT analysis you should develop strategies to:

maximise and capitalise on your strengths

improve on your weaknesses to overcome their effect on your business

recognise and take advantage of opportunities

be aware of, and minimise the potential impact of threats.

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YOUR COMPETITORSA competitor is any business that offers the same or similar products and services to the same groups of customers you are targeting.

There are three types of competitors for your product/service:

Direct competitors Indirect competitors Emerging competitors.

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ANALYSING YOUR COMPETITORS

In order to analyse your competitors, you need information in the following areas:

Location Products offered Services offered Markets served Points of sale Pricing structure Strengths Weaknesses.

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COMPETITIVE ADVANTAGE

Your competitive advantage must be:

based on the strengths of your business

meaningful and valued by your target customers

substantial enough to make a difference

sustainable in the face of competitor action and changes in the market.

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POSITIONING STRATEGIES

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THE MARKETING MIX

“4P’s”:

Product – what you are selling.

Price – what you expect in return for offering your product/service.

Place – where you will sell your product/service to the target market.

Promotion – the way you are going to let customers know about your product/service.

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FEATURES OF A PRODUCT/SERVICE

A feature refers to any attribute of your product/service. Features are the tangible, measurable aspects of a product/service.

engine size of a car

woollen fabric in a dress

the processing speed of a computer

the provision for same day service by a dry cleaning firm

the taste of a home-made apple pie

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BENEFITS OF A PRODUCT/SERVICE

A benefit, describes how a product/service will be of advantage to, or help, a customer.

increased safety

increased efficiency

saved expense

improved appearance

greater comfort

enhanced image

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LIFE CYCLE OF YOUR PRODUCT/SERVICE

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LIFE CYCLE OF YOUR PRODUCT/SERVICE

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PRODUCT/SERVICE MIXRemember that your aim is to meet the customers’ need in relation to:

product/service application

product/service range

quality

features

packaging

unit size

guarantees or warranties

benefits to customer.

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PRICE It is not possible to make pricing decisions in isolation. You need to consider a combination of factors such as:

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METHODS OF PRICING

There are three main methods of pricing products/service:

Cost-based pricing

Demand-based pricing

Competition-based pricing.

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METHODS OF PRICING

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SPECIFIC PRICING STRATEGIES

market skimming pricing market penetration pricing target return pricing going rate pricing perceived value pricing image pricing product line pricing psychological pricing loss leader pricing discount pricing distress pricing

We have already covered what these mean in previous lectures.

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PLACE

The word place in marketing terms, refers to where the exchange of product/service occurs between the seller and the buyer. Deciding on a ‘place’ involves three aspects:

the location the premises and its

location methods of distribution.

Activity• You are now going to conduct a SWOT analysis based on

a new product.• A CRICKET BALL

• Saved under:

Activities/Hardcopy/Slides

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