HSC topic 3: Marketing
Nature and role of markets and marketing
Marketing planning process
The business environment is constantly changing and becoming more complex. New markets are opening while others close. Customers’ tastes and preferences change over time, and their expectations are increasing. Due to globalisation – the process by which the world’s economies are becoming more closely linked – competition within the marketplace has never been so fierce.
Strategic market planning is the process of developing and implementing marketing strategies to achieve marketing objectives, which in turn will achieve business goals
Elements of the marketing plan - such a plan will consist of 5 steps
1. Performing situational analysis, including SWOT and product life cycle analysis
2. Establishing market objectives
3. Identifying target markets
4. Developing marketing strategies
5. Implementing, monitoring and controlling
Strategic marketing planning
Step 1 – Situational analysis:
Investigates the marketing opportunities and potential problems
Answers two broad questions:
Where is the business now; and
Where will the business be in the future?
Step 2 – Establish market objectives
Statement of what the business wants to achieve through its marketing activities
Clear objectives are essential for any marketing plan to be effective
Step 3 – Identifying target markets
Group of customers to which the business intends to sell its products
Research is required to identify their customers’ needs
Too many businesses believe customers will purchase their product but this doesn’t eventuate
Methods of research include: questionnaires, informal interviews, written or verbal surveys and taste testing/free sampling
Step 4 – Developing market strategies
Actions undertaken to achieve the businesses marketing objectives. Four main stragegies include (marketing mix)
Product
Price
Promotion
Place
Once the four P’s have been established, the business must then determine the emphasis it will place on each of the variables
Step 5 – implementing, monitoring and controlling the market
Monitoring involves comparing actual performance with predetermined performance standards then modifying any changes that need to be done
Market share analysis
Profitability
Modifications could include: changes to price, packaging, portion/size or redeveloping a new market strategy
Term
Definition
Strategic market planning
Is the process of developing and implementing marketing strategies to achieve marketing objectives
Situational analysis
Investigates the marketing opportunities and potential problems
Marketing objective
Is a statement of what is to be achieved through the marketing actives
Target market
Is the group of customers to which the business intends to sell its product
Marketing strategies
Are plans that outline how a business will use its resources to achieve its marketing objectives
Marketing mix
Refers to the combination of the 4 elements of marketing, notably the 4 P’s
Marketing management
Is the process of monitoring and modifying the marketing plan
Element
Definition
Situational Analysis
The starting point for any marketing plan is an assessment of the business’s present position, the marketing opportunities and potential problems
Situational Analysis
This element identifies two broad questions: where the business is now and where it will be in the future
Objectives
Clear objectives are essential for any marketing plan to be effective
Objectives
E.g. of this element include: increase market share by 5% and improve existing product range
Target Market
Sales are the lifeblood of any business, so it is important for businesses to have a good understanding of their customers
Target Market
Basic research needs to be conducted to identify customers’ needs and wants
Strategies
Utilising the 4 elements of then marketing mix
Strategies
Once the 4 P’s have been established, the business needs to determine how much emphasis it will put on each variable
Implementing and
