Marketing Strategies; Unit 3 - Notes

Notes made from a combination of resources including the Malcolm Surridge text book and Philip Allan revision guide.

Covers the marketing quarter of the course; Marketing Objectives, Markets and Marketing, Marketing Strategies and Marketing Plans

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Marketing Objectives
Marketing:
The process by which a firm tries to identify, anticipate and satisfy customers needs and wants and at
the same time meet its own needs
Involves an exchange process in which both sides benefit
Requires a good understanding of customer requirements achieved through primary and secondary
research
Marketing is process and is therefore a series of stages opposed to a one-off action (Segmentation,
Targeting, Positioning)
Firms are realising the high level of costs and additional difficulties finding new customers compared
to keeping old ones
Providing a high quality service and encouraging them to return
Responsibility for Marking Activities:
There may be people responsible for the various products the firm offers, or different divisions or
regions
The precise jobs and priorities depend on the nature of the firm
Marketing Objectives:
Medium to long term targets intended to provide a sense of direction for the marketing department
Objectives:
Sales targets
Market share
Brand awareness
Broad product range
Break into a new market / segment
Influences:
The nature of the marketing objective will therefore depend on the culture of the firm
Internal:
Operations capacity
Human resource qualities
Financial position of the firm
Corporate Objectives
Size and Nature of the Firm
Passion of a USP
External:
Macro-Environment:
Political
Economic
Social
Technology
Legal

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Environment
Market position
Suppliers
Customers
Competitors
Relationship Marketing:
Build long term relationships with customers
Understand the various stages in a customer's life so they know what and when they offer products
Market Share: Measures the sales of one product as a percentage of the total market sales
Sales Growth: Occurs when the value or volume of sales increase
Marketing Budget: Consists of forward financial targets set for revenue and the amounts to spend
on marketing activities.…read more

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Good understanding of markets should help a firm target the right segments and to market its
products effectively
Requires a good understanding of:
Market size
Market share of firms in the market
Barriers to entry
Patterns and trends of sales
Substitute products
Why Analyse Markets?
Market research is of little value as customers don't know what they want (Steve Jobs)
Should help reduce risk and ensure marketing is focused and relevant
Only when you know where you are and what's happening can you really set…read more

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The more times a correlation appears to the exist, the more likely it is that the managers will
believed a link does exist
Other Ways of Estimating Future Sales:
Market Research:
Can be used to try identifying likely future trends
Value of the research depends on whether it's primary or secondary, and the quality of the
information
Test markets allow firms to examine the customer's reactions before committing to full scale launch
Test markets also allow your competitors to see your product before you launch…read more

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Forecast is for the near future
Based on detailed and accurate market research
Product is well established and the market is known
External factors are predictable
Importance:
Operations managers will need to know the likely pattern of demand to ensure there is sufficient
capacity / Capacity will constrain sales levels
Finance will need estimate expected revenues and likely levels of profit / Finance will limit
promotional activity
HR will need to make decisions about staffing
Why They Might Go Wrong:
Changes in customer buying behaviour…read more

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Which segments of the market to target
Requirements of each segment differs and so effective markets require an understanding of
these needs to decide the most profitable option for the firm
Targeting: Picking the segment you intend to sell to
Positioning:
How to position yourself
Relates to price and quality standards
Each marketing strategy will have different market activities being carried out
Deciding On a Strategy:
Where should the firm complete and which segment should it target?
What should it offer?
How should it complete…read more

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Unrelated Diversification: The firm has no previous experience with the industry
Porters Generic Strategies:
Low Cost:
Focuses on providing similar benefits to competitors, but doing so at a lower price
Constantly looking for ways to reduce costs the make the firm the market leader
Strip away costs to enable lower prices
To be successful, a firm must be able to deliver its products more cheaply than its competition
Can achieve economies of scale by lowering costs through mass production and bulk buying
Differentiation:
Differentiating what…read more

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The domestic market may be saturated
The domestic market is subject to increasing competition and regulation
The benefits of a particular market opportunity overseas
Reducing the risk of being dependant on one market
However problems can arise as the firm is unlikely to know the market well
Will need to ensure it full understands:
Consumer buying behaviour
Legal and economic factors
Possible response of the competition
Stages of Entering an Overseas Market:
Begin to sell abroad by exporting whilst continuing to focus on the domestic…read more

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Is it easy for others to imitate?
Developing and Implementing Marketing Plans
Marketing Plan:
Market planning involves developing the tactics necessary to implement the market strategy
Sets out in detail:
Marketing objectives
Marketing strategies
Marketing budget
Marketing activities
Mission Statement
Corporate Objectives
SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)
Sales forecasts…read more

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Should say what needs to be done, how it will be achieved, how much will be spent on it and what is
going to be done when, who is responsible for each activity and what resources are needed
The plan will integrate the other functions:
HR will need to know when different staff will be needed
Finance will need to know what expenditure will and inflows will occur
Operations will need to know when production is going to be required
Questions that should be asked…read more

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