ROLE OF MARKETING (TASI)

OVERVIEW ● Marketing = interactive activities designed to plan, price, promote and distribute products to

existing and potential customers. ● A marketing plan is a document listing the activities used to achieve specific marketing

outcomes for g/s based on careful R&D. ● Marketing is crucial to make customers AWARE of products; thus driving generation of sales ● Customer-orientated marketing is a major focus, revolving around consumer demand ● Major goal of marketing is profit maximisation – strategic role translates this into reality

STRATEGIC ROLE OF MARKETING (CSMBE) ● The strategic role of marketing involves the long-term role that marketing plays within the

business that goes beyond the business – i.e. impacts on society. ● It involves 5 key areas: ● Choice

o Marketing is used to differentiate products offered by the competition in the market e.g. whitening toothpaste vs. sensitive teeth toothpaste – creates SCA

● Standard of living o Products on the market can enhance our lifestyle e.g. small mobile phones o R&D allows businesses to capitalise on changing needs of society and ↑ living standard

● E.g. healthy lifestyles range of breads catering for dietary and nutritional requirements (higher quality = better health = better life)

● Employment o Many skill areas are involved in the marketing of a product e.g. transforming RMs, R&D

to develop and enhance the product, selling, etc. o Results in a range of job opportunities – income is then used to buy g/s

● Brand awareness o Achieved through visibility in the market and how this is translated into sales

● e.g. print and electronic media – most accessible ● Market share

o Market share is the percentage of total sales compared to the competition o Increased market share = increased sales = increased profitability

INTERDEPENDENCE ● The marketing concept = philosophy that all 4KBF are involved in satisfying consumer wants

while achieving business goals. ● Finance:

o Funds are required to execute any marketing activities. o Marketing generates a customer base and thus funds.

● Operations: o Operations creates the g/s to market to consumers. o Marketing sets the goals and tasks of operations processes after MR to create a product

that best suits consumer needs e.g. through product design, pricing, etc. ● HR:

o No function can operate without staff – employees market the product.

o Marketing sets goals and expectations for operations which affects staffing decisions; e.g. marketing high quality g/s requires skilled workers to be selected, motivated and retained.

TYPES OF MARKETING APPROACHES ● A production approach markets the strengths of the business without considering customer

wants/needs. o Based on mass production and distribution techniques e.g. toilet paper

● A sales approach emphasises selling the product because of increased competition in the market, i.e. persuasion.

● A marketing approach focuses on market research to determine and thus satisfy customer wants/needs.

o Based on customer-oriented g/s (connecting business and consumer), ensuring the business achieves its goals.

o CASE STUDY: Apple ● The marketing process has further evolved to include:

o CSR & environmental sustainability – businesses must meet changing social expectations to remain competitive e.g. boycotting plastic

o Relationship marketing (CRM) – strategy to foster customer loyalty, interaction and l/t engagement by promoting communication and directly addressing needs

TYPES OF MARKETS ● A market is a group of individuals, organisations or both which:

o Need or want a product o Have the money to purchase the product (i.e. purchasing power) o Are willing to spend the money to obtain the product o Are socially and legally able to purchase the product

● The 6 main types of markets are: o Resource – primary production e.g. mining, fishing, farming o Industrial – businesses that purchase goods to use in the production of other products

(secondary/tertiary business) e.g. Apple batteries o Intermediate – products are sold to businesses that then sell to other customers

(wholesalers) e.g. Subway o Consumer – individuals and households e.g. supermarkets o Mass – targets vast numbers of individuals (intensive distribution) e.g. food, water,

electricity o Niche – small, specialised and concentrated micro markets e.g. antique dealers,

magazines (gardening, fashion, cooking, health)

INFLUENCES ON MARKETING (FEC)

FACTORS INFLUENCING CUSTOMER CHOICE (PEGS) ● Psychological influences: influences within the individual

o Perception = how people create meaning ● Marketing can create favourable perceptions e.g. luxurious/classy images may not

reflect actual qualities of product o Motives = reasons for doing something

● e.g. health, approval of others – marketing attempts to motivate customers to buy o Attitudes = feelings about an object or activity

● Influence marketing strategies e.g. packaging, advertising (cars luxurious image) o Personality = characteristics that make up a person o Self-image = how people view themselves

● Consumers purchase products that reflect self-image – marketing highlights the IMAGE value e.g. celebrity endorsement

o Learning = changes in behaviour as a result of new information/experiences ● Marketing may assist learning that encourages brand loyalty e.g. "never went back

to X after trying Y" ● Sociocultural influences: influences of others

o Social class ● Education, occupation and income influence the type, quality and quantity of

products individuals buy o Culture and subculture

● The learned values, beliefs, behaviours and traditions shared by a society – determines what people wear/eat and how they live e.g. greater cultural desire for healthy foods low fat foods marketed

o Family and roles ● Roles in families influence buying behaviour e.g. parents grocery shopping

o Reference/peer group ● Groups of people with whom a person closely identifies, adopting their attitudes

● Government influences: policies that affect business activity and consumer spending

o Economic policies – control economic activity ● e.g. interest rates – directly + indirectly influence business activity (see: economic)

o Legal policies – control business behaviour ● Influence marketing decisions e.g. no false advertising ● Influence consumer spending e.g. tobacco packaging + tax ● Competition and Consumer Act 2010 (Cwlth) ● Fair Trading Act 1987 (NSW)

● Economic influences: influence capacity to compete and willingness to spend

o Boom ● Periods of low unemployment and rising income ● Businesses + customers are optimistic about the future ● Customer spending increases, business promotion increases ● Sales respond positively to all forms of marketing

o Recession ● Customer and business spending are low ● Customers become price-conscious, looking for value and long-lasting products

● Marketing during recessions focuses on retaining existing market share (survival) CONSUMER LAWS (WIPD) ● Purpose of consumer laws is to protect consumers from business exploitation ● Federal government laws e.g. Competition and Consumer Act 2010 covers fair and reasonable

behaviour by businesses ● ACCC = regulatory body that enforces the laws, which relate to:

o Deceptive and misleading advertising – creating a false impression to influence customers, such as: ● Bait and switch selling – lures customers with low prices on unavailable items to

upsell them on a similar, pricier item ● Fine print – condition written so small it is difficult to read ● Before and after images – distorted e.g. Kendall Jenner + Proactiv

o Price discrimination – where different prices are set for the same product in different markets to exploit price elasticity e.g. Uber surge prices in North Shore

o Implied conditions – unwritten terms of a contract ensuring a merchantable/acceptable quality good ● Fit for purpose it was intended to perform e.g. sleeping drug Vioxx found to

double risk of heart attack o Warranties – promise by business to repair or replace faulty products

● Extended warranties on white goods (appliances e.g. irons, washing machines, fridges) extends confidence in consumers

o Refunds and exchanges – by law, businesses must offer a refund/exchange if the product is faulty, does not match the description or is unfit for purpose.

ETHICAL INFLUENCES (TAPES) ● Ethical behaviour refers to morally acceptable conduct that goes beyond legal requirements.

o Increasing awareness of ethical issues in society requires that businesses conduct marketing in a socially acceptable manner.

● Benefits of ethical behaviour: o Attract new customers and increase loyalty o Enhance reputation and attract more investors o Improved employment relations – creates positive corporate culture, worker satisfaction

and retention increases ● Ethical criticism of marketing is based on:

o Creation of need (materialism) – manipulating desire to constantly acquire possessions e.g. Apple and unnecessary features

o Stereotypical images of males and females – e.g. males using power tools/watching sports vs. females preparing meals/cleaning

o Use of sex to sell products – overuse of sexual themes to suggest the product increases attractiveness e.g. Lynx body spray

o Product placement – subtle advertising strategy e.g. Roger Federer and Rolex o Invasion of privacy – e.g. tracking website history to target ads

TRUTH AND ACCURACY ● Untruthful or exaggerated advertising can damage a business' reputation and customer base. ● Can include:

o Concealing facts – purposefully omitting information can severely harm customers' trust o Vague statements – ambiguous language misleads consumers to assume the advertiser's

intended message o Exaggerating claims – such as puffery (exaggerated praise to promote a product)

e.g. shampoo "superior" to any other option on the market, cannot be confirmed ● Sugging is a sales technique disguised as market research – not illegal but raises issues of

privacy and deception GOOD TASTE IN ADVERTISING ● Good taste in advertising is highly subjective – some consumers may regard an advertisement

as offensive, while others might not o e.g. NT tourism – slogan "CU in the NT" deemed offensive; banned in Darwin

● Marketers may push boundaries to target widespread publicity o Can be beneficial if received well but also has potential to damage business' reputation

PRODUCTS THAT MAY DAMAGE HEALTH ● Federal and state governments aim to restrict the provision and advertising of unhealthy g/s

without having to ban the products o e.g. restrictions on digital advertising of junk food to children o e.g. bans on tobacco advertising, packaging, sale behind counter, age restrictions etc.

ENGAGING IN FAIR COMPETITION ● Businesses compete against others to attract the greatest number of customers – successful

competitors increase sales, market share and profit. o Competition is important to drive economic growth – encourages innovation, provides

choice and increases standard of living ● Also keeps prices fair – monopolies have the power to charge exorbitant amounts

if consumers have no other choice ● The ACCC regulates fair competition in the market to prevent anti-competitive conduct

Competition and Consumer Act 2010 o e.g. "cartel conduct" – businesses agree to act together instead of competing, increasing

their profits and putting others out of business

PROCESSES OF MARKETING (SMEIDI) SITUATIONAL ANALYSIS ● Most crucial step of the marketing plan – businesses MUST have a precise understanding of

their current position, as well as a clear picture of where it is heading.

SWOT ANALYSIS ● Involves the identification and analysis of the internal strengths and weaknesses of the

business, as well as the opportunities in and threats from the external environment.

● Once the SWOT has been conducted, an assessment of the product's position in the PLC is

necessary to develop marketing strategies (they vary depending on the stage).

PRODUCT LIFE CYCLE ● The product life cycle (PLC) consists of the stages any product passes through. ● Marketing strategies differ at every stage:

o Introduction establish brand, price lower than competitors, promotion seeks buyers, selective distribution

o Growth increase distribution + promotion, quality product, increase market share o Maturity market saturation, packaging + features to differentiate from competitors,

price lowered to maintain market share o Decline decrease distribution channels, decrease promotion, low price to clear stock.

● Products decline due to: o New technologies being introduced o Fluctuations in economic activity o Changing social attitudes e.g. environmental awareness electric cars favoured

● CASE STUDY: Apple iPod Nano discontinued due to decline (new technology being introduced), constantly innovating to create new products e.g. iPhone 11

MARKET RESEARCH ● Market research (MR) is the process of systematically collecting, recording and analysing

information concerning a specific marketing problem. o Marketing strategies perform best when they are based on accurate, current, and

detailed information/trends. o MR can identify both marketing opportunities and problems, as well as evaluating the

implementation of the marketing plan. ● Since releasing a new product onto the market is risky, main purpose of MR is minimising risk.

o By collecting and assessing information about the needs and wants of consumers, a more accurate and responsive marketing plan (consumer-oriented) can be designed

● Reduces risk of market failure being well-informed about all aspects of the market e.g. buying behaviour places the business in a stronger position.

● CASE STUDY: IKEA initial failure in Japan, later undertaking MR helped them succeed ESTABLISHING MARKET OBJECTIVES ● Marketing objectives are SMART goals to be achieved through the marketing plan – vital ● Common objectives include increasing market share, expanding the product range and

maximising customer service. o Must have specific targets e.g. "increase by 10% within next 12 months"

● Market share refers to a business's share of total industry sales for a particular product. o Often increased by extending product range e.g. TV channels show different programs o CASE STUDY: Google (leader in search engines, 80% global market share)

● Product mix is the total range of products offered by a business. o Expanding is important preferences change over time, stagnancy risks obsolescence o Each item in a product line should attempt to satisfy the needs of different target

markets e.g. florists vases, candles, chocolates ● Customer service refers to how well a business meets and exceeds customer expectations.

o Good service = improved consumer satisfaction, establishes loyal customer base o To maximise customer service, businesses can:

● Train and reward engaged, customer-oriented employees ● Establish and maintain l/t relationships with customers (CRM) ● Conduct research to anticipate trends or use scanning and learning

o CASE STUDY: Amazon Prime IDENTIFYING TARGET MARKETS ● A target market is a group of present + potential customers to which a business aims to sell.

o Grouped by characteristics e.g. age, income, location, lifestyle ● Identifying a TM is important so marketing strategies can be directed to satisfy customers

o Marketing resources are used more efficiently = campaigns more cost effective o Promotion material more relevant to TM needs = more likely to succeed

● Mass marketing seeks a large range of customers for a standard product e.g. toilet paper

o Assumes that individuals in TM have similar needs single MM directed at everyone ● Market segmentation occurs when the total market is subdivided into groups of people who

share one or more common characteristics. o Segmenting enables a business to design a marketing plan that meets the needs of a

smaller, uniform group e.g. motor vehicles sports cars vs. SUVs ● A niche market is a very narrowly selected TM segment, or 'micro-market'.

o Based on demographic e.g. age, features e.g. screen readers, geographic e.g. local specialties, language, occasions e.g. weddings, etc.

DEVELOPING MARKETING STRATEGIES ● Marketing strategies are actions undertaken to achieve the business's marketing objectives. ● The marketing mix will vary depending on results of processes e.g. stage of PLC, target market ● Product decisions revolve around quality, packaging, design, brand name, etc. ● Pricing decisions are made based on competitor pricing, cost of production, business goals and

consumer demand. ● Promotion strategies inform, persuade and remind customers about products – decide form ● Place/distribution regards the ways of getting the product to the customer (intensive,

selective, exclusive) IMPLEMENTATION, MONITORING AND CONTROLLING ● Implementation is the process of putting the marketing strategies into operation.

o To be implemented effectively, the plan must be fully integrated with all business areas o Good communication and motivated staff dedicated to achieving the marketing

objectives are essential. ● Monitoring is the process of checking the actual progress of the marketing plan. ● Controlling involves the comparison of planned performance against actual performance and

taking corrective action to ensure the objectives are attained. ● Two steps to control and evaluate effectiveness of plan:

o Establish KPIs e.g. increase monthly sales by 5% o Compare and evaluate actual performance against KPIs e.g. budgets, sales statistics

DEVELOPING A FINANCIAL FORECAST ● A financial forecast is the business' predictions about the future.

o Important when choosing/revising marketing strategies to determine cost. o A cost-benefit analysis measures revenue potential against anticipated expenditures for

each strategy to aid in deciding how best to allocate resources. ● Financial forecasts require two steps:

o Cost estimate how much will MP cost (market research, product development, promotion and distribution)

o Revenue estimate how much revenue will MP generate (sales predictions and pricing) COMPARING ACTUAL AND PLANNED RESULTS ● Sales analysis is the comparison of forecasted and actual sales to evaluate the effectiveness of

marketing strategies. o Inexpensive to collect and process, but does not reveal profit level

● Market share analysis is the evaluation of a business' marketing strategies against competitors to determine the causes of sales changes.

o e.g. if sales decline but market share is stable assume external, i.e. eco. downturn o e.g. if both sales and market share decline strategies need reviewing

● Marketing profitability analysis breaks down total marketing costs into specific activities e.g. advertising, admin, etc.

o By comparing costs with results, managers can assess effectiveness of each activity and plan to better allocate resources

REVISING THE MARKETING STRATEGY ● The dynamic business environment requires constant revision of the marketing mix. ● Product modifications upgrading products, introducing new products and/or deleting old

ones can help maintain SCA ● Price modifications changes in the external environment cause prices to fluctuate, must be

revised accordingly ● Promotion modifications promotion costs are high during launch and stabilise/fall during

decline, strategies must change according to PLC ● Place modifications product success requires expansion into bigger markets e.g. overseas

markets, internet ● CASE STUDY: Apple

MARKETING STRATEGIES (7PDPGEMS) PRODUCT ● Products are g/s that can be offered in exchange for the purpose of satisfying a want or need. ● The total product concept refers to all the tangible and intangible benefits a product

possesses. ● A brand is a name, term, symbol, or design that identifies a product and distinguishes it from

competition. o e.g. Apple, McDonalds, Coca-Cola, Google, Nike o Usually protected because inferior counterfeits weaken consumer trust in a brand

● Benefits of branding: o Helps consumers identify specific products, evaluate their quality and reduce perceived

risk of purchase o Helps businesses gain repeated sales from recognition, introduce new products onto the

market, encourage customer loyalty, and charge higher prices ● Branding strategies:

o Manufacturer/national brand owned by a manufacturer e.g. Kraft foods o Private/house brand owned by retailer e.g. Myer sells own label Miss Shop o Generic brand no brand name e.g. Woolworths Select

● Packaging involves the development of a container and the graphic design for a product. ● Benefits of packaging:

o Can create image of luxury, helping to promote product o Preserves and protects the product o Makes transportation, display and storage easier.

● CASE STUDY: Coca-Cola (trademarked bottle shape) PLACE ● Place/distribution refers to HOW consumers receive products. ● Non-store selling is retailing conducted away from the traditional store e.g. e-commerce,

door-to-door selling, vending machines ● Distribution channels are the routes taken to get the product from the factory to customer.

● Market coverage refers to the number of outlets a firm chooses for its product (channel choice).

o Intensive distribution = saturating the market e.g. groceries o Selective distribution = moderate proportion of all possible outlets e.g. clothing,

furniture, appliances o Exclusive distribution = only ONE retail outlet in a large geographic area e.g. Gucci

● Physical distribution involves transport, warehousing and inventory control (see: operations).

PRICE ● Price refers to the amount of money a customer is prepared to offer in exchange for a product.

o Too high = lost sales unless superior benefits are offered. o Too low = may give impression that the product is low-quality.

● Businesses can gain control over price by differentiation e.g. designer label Nike can charge more than Target

● Pricing methods are decided based on competition, government regulations, stage of PLC and economic activity.

● Methods provide a 'basic price' which are adjusted by pricing strategies (depending on marketing objectives and marketplace conditions).

● Cost-based pricing is derived from the cost of production and then adding a mark-up. o Used mostly by retailers: limitations in determining mark-up percentages

● Market-based pricing sets prices according to supply and demand. o Difficult to apply as it constantly fluctuates

● Competition-based pricing covers production costs and is comparable to competitor prices. o Below competitors = good for entry into established market o Equal to competitors = avoids MR and price wars o Above competitors = establish product as superior

● Pricing strategies adjust the pricing methods depending on marketing objectives and market

conditions. ● Price skimming = charging the highest possible price during introduction to cover R&D costs

o CASE STUDY: Apple (high prices for new iPhones that drop over time) ● Price penetration = charging the lowest possible price to quickly achieve large market share

o Difficult to raise prices afterwards, may lock businesses into low sales revenue until product is substantially modified

● Loss leaders = selling products at or below cost price to gain on other items o Good for excess stock, increasing customers, and building low price reputation

● Price points = selling products at set levels or price brackets o CASE STUDY: QANTAS (economy, premium economy, business class)

● Premium/prestige pricing = high prices to create an aura of quality e.g. Rolex PEOPLE ● The people element refers to the quality of interaction between the customer and staff that

deliver the service. ● Businesses must recruit and select qualified workers and train them to perform the service

well customer satisfaction PROCESSES ● Processes refers to the flow of activities that a business will follow in its delivery of a service. ● Processes must be highly efficient to achieve customer satisfaction. ● CASE STUDY: McDonalds (efficient processes = fast service)

PHYSICAL EVIDENCE ● Physical evidence refers to the environment in which the service is delivered.

o Includes location and materials needed to perform service e.g. business cards ● High-quality physical evidence creates an image of value and excellence e.g. luxury hotels

PROMOTION ● Promotion describes the methods used by a business to inform, persuade and remind

consumers about its products. ● Aims of promotion:

o Attract new customers through awareness o Increase loyalty by reinforcing image o Provide information so customers can make informed decisions

● A mix of promotional strategies is vital to cater to diverse needs and attract as many potential customers as possible, as different strategies will appeal to different people.

● Advertising is a paid, non-personal message communicated through a mass medium.

o Can include mass marketing, direct marketing, telemarketing, e-marketing or social media advertising.

o Above the line = expensive e.g. TV o Below the line = cheaper e.g. flyers

● Personal selling involves a sales representative interacting with a customer to make a sale. ● Advantages:

o Modifiable to suit individual circumstances, increasing customer satisfaction o Creates l/t relationships, resulting in repeat sales o Able to provide after-sales customer service e.g. servicing

● CASE STUDY: Apple (Genius Bar) ● Relationship marketing is the development of l/t and cost-effective relationships with

individual customers. o e.g. loyalty programs = rewards offered to customers who frequently make purchases.

● CASE STUDY: IKEA (IKEA FAMILY cards provide members with special offers e.g. discounts) ● Sales promotion is the use of direct inducements to sell more products.

o e.g. coupons, premiums, refunds, samples, etc. o Aims to entice new customers, encourage trial purchase, and increase repeat purchases

● Publicity is any free news story about a business' products, good or bad e.g. YouTube reviews

o Opinion leaders are people who influence others e.g. actors ● Public relations (PR) aims to create and maintain favourable relations with customers e.g.

celebrity endorsement ● PR can help businesses to achieve goals by:

o Communicating effectively to promote a positive image o Monitoring issues i.e. providing early warning of public trends that may harm sales o Crisis management i.e. protecting reputation as a result of negative publicity

PRODUCT/SERVICE POSITIONING ● Refers to the technique in which marketers try to create an image or identity for a product

compared with the image of competing products. o i.e. how potential buyers perceive the product e.g. Rolex evokes image of quality

● Positioning is achieved through name, price, packaging, styling, promotion and distribution channels.

● Repositioning focuses on changing what customers associate with the brand may be done due to decline in sales, target market change, new competition, or to overcome negative perceptions.

MARKET SEGMENTATION ● Market segmentation occurs when the total market is subdivided into groups of people who

share one or more common characteristics. o Aim to increase sales, market share and profits by better understanding and

responding to the desires of the different target customers. ● A segmentation variable is the characteristics of individuals that are used to divide the market

into segments. ● Demographic segmentation = dividing the market according to structural population features

e.g. age, sex, cultural background, etc. o CASE STUDY: Coca-Cola (18-24 y/o males with Mother) o CASE STUDY: Nike (Middle East female fitness market with sports hijab)

● Geographic segmentation = dividing the market according to geographical location e.g. country, climate, rural, urban, etc.

o CASE STUDY: McDonalds (different menus for different countries e.g. no pork in India) ● Psychographic segmentation = dividing the market according to personality, opinions, lifestyles

and socioeconomic group. o CASE STUDY: L'Oreal (opinions purchased the Body Shop to appeal to customers

wanting organic and cruelty-free products) ● Behavioural segmentation = dividing the market according to the customers' relationship to

the product i.e. knowledge of, attitude towards, use of, or benefits sought from the product. o e.g. users vs nonusers users then classified into heavy, moderate or light

● To encourage light or moderate users to purchase more, businesses may have to redesign product or set special prices

o CASE STUDY: Head&Shoulders (benefits anti-dandruff, detangling, volumising, and moisturising shampoos)

o Can also include loyalty e.g. Qantas provides best service to most loyal customers PRODUCT/SERVICE DIFFERENTIATION ● Product/service differentiation is the process of developing and promoting differences

between a business' g/s and its competitors. o CASE STUDY: Coca-Cola (continual flow of differentiated products e.g. Diet Coke,

Mother, Vanilla Coke) ● Customer service – customers desire personalised, caring and high quality service.

o Failing to provide excellent customer service will result in lost sales and damage to a business' competitive position.

o Can also include presentation of the premises, atmosphere, or range of products. ● Environmental concerns – businesses that create pollution risk losing customers in an

increasingly socially aware population. o Businesses that adopt a 'green' philosophy may see sales increase as consumers make

personal decisions to reduce their carbon footprint. o CASE STUDY: IKEA (praised for aiming to be 'climate-positive' by 2020) o CASE STUDY: Nestle (has been boycotted due to environmental violations and

unsustainable water practices) ● Convenience – increasingly busy consumers often select products that are convenient to use.

o CASE STUDY: Uber Eats ● Social and ethical issues – ethical consumerism provides businesses with opportunities to

satisfy growing consumer demands. o The Fair Trade movement is gaining in influence with consumers increasingly prepared

to pay more for guarantees of fair labour practices and sustainable, organic products. o CASE STUDY: Ben & Jerry's (FAIRTRADE mark assures fair labour practices).

E-MARKETING ● E-marketing is the practice of using the internet to perform marketing activities. ● Technology has given businesses access to global markets websites can promote products

and dispatch them worldwide ● Includes web pages, podcasts, SMS, blogs and location-based marketing.

o Allows businesses to establish a reputation for expertise by providing detailed and easily accessible information about their g/s

o New ideas for g/s can be shared with the public to gain feedback ● Social media advertising (SMA) e.g. Facebook, Instagram is gaining popularity.

o Inexpensive and easy to use o Effective for exposure and communication o Enables marketers to accurately measure the reach of advertisements using engagement

data. GLOBAL MARKETING (PPSBC) ● Benefits of global expansion include:

o New sales opportunities boost in future revenue o Meeting different customer tastes allows businesses to keep products that would

have been deleted e.g. Starbucks in Aus (appeals to tourist market) o Lenient legislation less restrictions on packaging, production, selling and WHS allow

for higher margins e.g. Apple manufacturing in China ● Challenges of global expansion include:

o Established competitors already have reputation, difficult to enter market o Supply chain no relationship w/ global suppliers, developing links takes time + money o Unique cultures and tastes customers may not like products, must undertake MR

● To develop and maintain a competitive position, businesses must understand and adapt marketing strategies to dynamic environments.

GLOBAL BRANDING ● Global branding is the worldwide use of a name, term, symbol or logo to identify a seller's

products. ● Advantages:

o Cost effective one advertisement used everywhere o Uniform worldwide image brand recognition o Successful brand name can be linked to new products decreases chance of failure

● CASE STUDY: McDonalds (recognised everywhere, irrespective of language barriers) STANDARDISATION ● Standardisation assumes that the way a product is used and the needs it satisfies are the same

everywhere. o Thus marketing mix is the same everywhere e.g. mobile phones, soft drinks, music

● Provides cost savings by: o Enabling economies of scale to be achieved o Reducing R&D costs o Standardising promotion strategies

● CASE STUDY: IKEA (Billy Bookcase)

CUSTOMISATION ● Customisation assumes that the way a product is used and the needs it satisfies are different

everywhere. o Thus marketing mix must be modified according to economic, political and cultural

characteristics of different counties. ● Possible to combine standardisation and customisation for optimum success in global markets.

o CASE STUDY: McDonalds (standardises name, logo, and production methods but customises its menu e.g. no pork in India)

o CASE STUDY: IKEA (standardised products but customised catalogues and showrooms) GLOBAL PRICING ● Global pricing is how businesses coordinate their pricing policy across different countries. ● Customised pricing occurs whenever consumers in different countries are charged different

prices for the same product. o Some may be more expensive to cover costs e.g. transport, taxes, tariffs

● Market-customised pricing flexibly sets prices according to local market conditions. o Influenced by supply and demand, as well as exchange rates (very risky). o CASE STUDY: McDonalds (very expensive in the UK)

● Standardised pricing charges customers the same price anywhere in the world. o Will succeed only if foreign marketing costs remain low enough to not affect overall

costs. o Risky because of exchange rates, and domestic businesses may undercut the

standardised price. COMPETITIVE POSITIONING ● Competitive positioning relates to how a business will differentiate its products to establish a

place in the market. o To differentiate successfully and avoid price differentiation only, businesses should strive

to develop customer relationships, operational excellence and product leadership. ● CASE STUDY: Tesla (superior performance and quality influences buying habits)

MARKETING ACRONYMS ● Role = TASI

o Types of markets, Approaches to marketing, Strategic role, Interdependence ● Strategic role = CSMBE (Come See My Big Erection)

o Choice, Standard of living, Market share, Brand awareness, Employment ● Influences = FEC

o Factors influencing customer choice, Ethical issues, Consumer law ● Factors influencing customer choice = PEGS

o Psychological, Economic, Government, Sociocultural ● Ethical issues of marketing = TAPES

o Truth, Accuracy and good taste, Products that damage health, Engaging in fair competition, Sugging

● Consumer law = WIPD

o Warranties, Implied conditions, Price discrimination, Deceptive and misleading advertising

● Processes = SMEIDI

o Situational analysis, Market research, Establishing market objectives, Identifying target markets, Developing marketing strategies, Implementing, monitoring and controlling

● Strategies = 7PDPGEMS (7 Precious Diamond Pearl GEMS)

o Product, Price, Place, Promotion, People, Processes, Physical evidence, Differentiation, Positioning, Global marketing, E-marketing, Market Segmentation

● Global marketing = PPSBC (Princess Polly Sells Brand Clothes)

o Pricing, Positioning, Standardisation, Branding, Customisation