Key Areas Of The Marketing Environment Marketing Essay

Published Date: 23 Mar 2015

This assignment emphasizes on relationship approach to explain the concept of marketing. With regard to service, the concept of marketing takes into consideration manufacturer's service organizations as well as service operations. Traditionally marketing was considered as a function which includes expertise planning and implementation of marketing mix. However, when it comes to services, this function of marketing is not taken into consideration. Marketing with regard to service is more about relationships, like those involving one-on-one transactions or whose scope is narrowed, for example, marketing of breakfast cereal or soap. Other kind of relationships whose scope is wider consist of significant social interaction which are on-going as well as long lasting, for example, service offered by hospitality industry or financial providers. Next, this assignment investigates the term relationship strategy and its nature. A detailed comparison about marketing and organizational behavior, concerning functions of businesses as well as academic regulations, drawn from the relationship approach are argued in this assignment. Lastly, the assignment emphasizes on the importance of service culture and internal marketing in this challenging global market to meet the marketing aspect and organizational behavioral needs of any business.

1.2: Analyze the relationship between businesses' vision, mission and marketing strategy

For any organization, mission statement is the most important statement which directs the business to achieve its goal and built its name in the market. Mainly, this statement includes three most important aspects, namely, vision, mission and core values. Vision is a wider thought of what the company wants to accomplish in future. Mission is mainly concerned which what steps the company is going to undertake to accomplish the set vision and core value involves the behavior of the company and its member throughout the course of goal accomplishment. All these three aspects are essential to direct the business through the path of success accomplishment.

After the company has created the mission statement, it is then important for it to set the goals, objectives and strategic or action plan/s. Goals usually involves targets which the company needs to complete in order to accomplish the vision. Objectives are SMART (specific, measurable, achievable, realistic and time-framed) statements to accomplish company's goals. Strategic or action plans are the detailed executive

plans which illustrate the ways in which goal and objective can be accomplished.

1.3: Evaluate the tools and techniques available for analysing key areas of the marketing environment and use them in realistic business situations

To analyze the key areas of marketing environment, the businesses are now emphasizing on strategic philanthropy concept. This concept helps to develop and evaluate the marketing issues, illustrates the focus of the stakeholders, and examines the aspects that need to be considered while executing the business plan. Today companies are realizing the advantages of strategic philanthropy concept not only for the employees and the investors but also for the community as whole. Currently, the companies are also formalizing and combining philanthropic decisions with other strategic decisions related to the performance of the company. 21st century companies are more emphasizing on management of social marketing issues for the interest of essential stakeholders.

1.4: Examine the factors influencing consumer choice and behaviour

In the current globalised market, there is an accelerating need for ethical choices as proved by most researches. However, not much has been printed about the decisions made by the ethical consumers and the impact of their decision making on marketing. Due to limited proven research work about ethical consumer choice, this assignment will highlight the outcomes of national survey conducted on large scale in UK on ethical consumers. Equation modeling and reliability analysis methods were use to study this most important and ignored area and also to investigate the essential factors influencing ethical consumer choice and their interconnectivity. Two sets of data was used to create decision making model and its cross validity was examined. This innovative model of ethical consumer choice and decision making showed remarkable improvement on consumers buying choice. Study results of this researched proved that the buying intentions of the consumers were highly influenced. The assignment, however, further discusses implications of these results on marketing practitioners.

1.5: Assess the role of market research in business decision-making

Market research results frequently produce negative reactions to discontinuous new products (innovative products) that later become profitable for the innovating company. Famous examples such as the fax machine, the VCR and James Dyson's bagels vacuum cleaner are often cited to support this view. Despite this, companies continue to seek the views of consumers on their new product ideas. The debate about the use of market research in the development of new products is long-standing and controversial. This paper reviews the literature in this area and examines the extent to which market research is justified and whether companies should sometimes ignore their customers. The paper offers a conceptual framework that may help companies to decide when market research findings may be helpful and when they may hinder the development of discontinuous new products.

Amplification of assessment criteria

1.1 Examine the main contexts of marketing

1.1.1 Assess critically the role of marketing in business, e.g. the impact of marketing on society

In today's time, marketing researchers and professionals are extremely interested in the value generated by marketing. Even though there is large number of research work on marketing, it is still unclear how the market value is interrelated with the interest of the marketing generators. Researchers further plan to examine how customer value and customer satisfaction are interconnected. This will help to lessen the uncertainty created around both the concepts. Both customer value and customer satisfaction are two different concepts in terms of theory and practical aspects. This assignment examines this along with highlighting whether customer value helps to predict the behavioral results in better way with compare to customer satisfaction, when it comes to business marketing. To address this issue, there are two different models generated and examined in a cross sectional survey with the purchasing management of a company. A direct influence of value on intention of purchasing manager is suggested by first model whereas the second model arbitrates the value with customer satisfaction. This research study proves that both customer value and customer satisfaction are two different concepts measured and conceptualized in different way, still are harmonizing with each other.

1.1.2 Demonstrate the contribution of marketing to business strategy, e.g. major contexts of marketing application's (consumer goods; business to business; services marketing)

There can be no more important aspect of constructing an effective marketing strategy than understanding competitors and your own organization's competitive position. The techniques such as Porter's Five Forces Model and a SWOT analysis have already been identified as ways in which an organization can assess aspects.

1.2 Analyze the relationship between businesses' vision, mission and marketing strategy

1.2.1 Explain the relationship between businesses' vision, mission and marketing strategy, e.g. developing a marketing strategy which supports the businesses' corporate strategy

A management team needs information about external environments to make sound strategic decisions. Environmental scanning is the process of gathering information about those external environments to inform decision-making. That information may come from a wide variety of sources. It is important to ensure that data gathering, interpretation/analysis and strategy formulation are seen as three separate stages of environmental scanning. Some organizations use the information they collect to construct different scenarios, which also contribute to their planning and prepare them for a flexible response.

1.2.2 Identify the key influences on shaping marketing strategy, e.g. competitor; capability and resources; target customers; external environment.

A great deal of attention has been devoted to the concept of market orientation in marketing academe and practice. Numerous perspectives have been proposed as researchers endeavor to conceptualize the market orientation construct and implement it in practice.

1.3 Evaluate the tools and techniques available for analysing key areas of the marketing environment and use them in realistic business situation.

1.3.1 Identify the main tools and techniques available for analysing key areas of the marketing environment, e.g. environmental scanning

This article focuses on defining and discussing the concept of critical success factors as input into the analysis, resource analysis, and strategy evaluation steps in the strategic planning/strategy development process. The reader is provided with eight possible sources of critical success factors including analysis, analysis of industry structure, industry/business experts, analysis of competition, and analysis of dominant firm in the industry, company assessment, temporal/intuitive factors and PIMS results. Examples of CSF's from various sources are provided and a scheme by which the reader can assess the relative importance of identified CSF's is presented.

1.3.2 Demonstrate the use of the main tools and techniques available for analysing key areas of the marketing environment, e.g. scenario planning

The methodological tools and techniques that analysts use to assess the evolving Innovation, Science and Technology-related (IS&T) factors impacting their enterprise's competitiveness and strategic environment. Studies generally show that a limited set of conceptual tools are regularly utilized by analysts in some enterprises; nevertheless, they are perceived only to demonstrate mixed success levels in meeting planning or decision-oriented needs. A performance gap exists between organizational needs to proactively address IS&T factors impacting their organization's competitiveness and the insights actually delivered to decision-makers by existing methods and the analysts who employ them. In this paper, the author defines the scope of IS&T analytical applications, identifies the conceptual tools and techniques used, applies a model for assessing the utility of the tools, describes the reasons why the tools do not deliver what is needed, and makes recommendations for improving the use of IS&T-focused analysis tools.

1.4 Examine the factors influencing consumer choice and behaviour

1.4.1 Analyze the process of consumer product acquisition and consumer choice, e.g. models of consumer buying behaviour; impact of memory, perception and learning on consumer choice

The ways in which consumers make choices are clearly of interest to those involved in marketing. Consumer behaviour includes elements which are rational and elements which are emotional. However, the process involved in making a choice and buying decision can be analyzed and represented in a step-by-step framework. This section examines that process and the underlying factors which determine consumer behaviour.

1.4.2 Analyze the factors which influence consumer behaviour, e.g. impact of personality, motivation, opinions, attitudes and values on consumer behaviour; role of reference groups on consumption behaviour

In the field tourism progress and planning, the decision making process is highly multifaceted because companies and communities have to combat with economic, social and environmental aspects of greater development. Geographic Information Systems (GIS) can be considered as an essential tool of methods and technologies of high applicability to provide for the attainment of greater tourism development. To investigate conflict, Spatial (environmental) data can be utilized which examines competition, explores influence on and helps in making decision. The impact assessment and simulation is highly significant for the development of tourism, and GIS can a role in terms of the environmental audit, exploring the suitability of sites for the planned developments

1.5 Assess the role of market research in business decision-making

1.5.1 Differentiate between market research and marketing research, e.g. their roles in determining structural characteristics and understanding marketing strategy decisions

Even when there is increasing talks on international standardization versus customization, to empirical intuitions existing fragmented light to deliver. On the basis of an integrated analysis of 36 studies revolving around outcomes of standardization / adaptation, his past, and performance, this flow has been found to be characterized by non-significant, contradictory, and to a certain level, the results disconcerting related to the concepts inappropriate pictures, poor design and poor analytical methods. The main termination arising from this analysis is that if you standardize or adapt to accomplish better business performance will fundamentally based on the totality of the conditions in which a company is faced with a scrupulous foreign policy of a specific time period.

1.5.2 Analyze the contribution of market research to the decision-making processes of a business, e.g. the role of marketing information systems; the importance of competitive intelligence

This paper reports case study of an inter-organizational (IOS) of Cisco and Xiao Tong in China. We interviewed their senior managers, heads of departments and employees who have been directly affected in their work. Other sources of are company documents and publicly available background The study examines the benefits of the IOS for both corporations. The also reveals seven critical success factors for the IOS, namely intensive stimulation, shared vision, cross-organizational implementation team, high integration with internal, inter-organizational re-engineering, advanced legacy and infrastructure and shared industry standard.

Outcome 02: Know how to build marketing strategy

2.1 Analyze critically how strategic market analysis, marketing goals and marketing actions influence marketing strategy

After designing core values, vision, mission, you need goals and objectives that will help to accomplish your vision.

Objectives - The objectives are broad statements of what you want. Therefore they should be included in your vision. You should look into the mission, as you will be involved to realize your vision. Examples of business objectives:

• Improving profitability

• Increasing the competence

• capture a larger market share

• give improved customer service

• Advance employee training

• Reduce the emissions of carbon dioxide

• An objective should accomplish below given criteria:

• Good: Is it fitting with the vision and mission?

• Acceptable: Adjusts the values ​​of the company and its employees?

• Clarity: Is it easy to understand and easy to explain?

• Flexible: can be adjusted and modified as needed?

Ensure the objectives are paying attention on the significant aspects of the business. Do not use too many objectives or else you mind lose your concentration. Even the design of your objectives do not conflict and get in the way with each other.

Demonstrate how an over-all view on the strategic position of businesses and the understanding of their competitors impact on their marketing strategy

Here are AgVA strategies, goals, objectives and action plan. It should be considered that the strategy is a sequence of techniques to use mission is to accomplish the vision. The objectives are statements of what I required to be done to execute the strategy. The objectives are explicit milestones to achieve the goal. The milestones can be accomplished with the action plans which include specific actions to be taken.

Vision: a vivacious rural economy determined by value-added agriculture.

Mission: To generate and foster the growth of value-added agricultural enterprises.

Strategy: utilize local peasant leaders with the skills for the development of company and for business development.

Objective: the interest of local farmers / development work experience.

Objective: generate a Subscription twenty farmers February 1st.

Action Plan: Establish a membership committee to employ local farmers' heads. Recognize the 40 farm heads in major cities in the area. Call qualifying. Contact individually, in the hope that half of crowd will be ready to participate.

2.3 Analyze critically the links between growth strategies and the main types of strategic marketing objectives

Goals are specific, measurable, time-sensitive statement of what should be achieved and when it will be achieved. Milestones along the road to achieving your goals. Examples of the company's goals are:

• at least a 20% after-tax rate of return on our investment in equity to earn during the next fiscal year

• the market share of 10 per cent increase over the next three years.

Reduce operating costs by 15 percent over the next two years, improving the efficiency of the production process. The time of the call-back to reduce the investigation of the client and not more than four hours.

The goals must meet the following criteria:

• Measurable: What will happen and when?

• Appropriate: apply it as a measure to reach the goal?

• Feasible: It is possible to achieve?

• Commitment: People are committed to achieving this goal?

• Properties are the people responsible for achieving the objective included in the definition of the target.

2.4: Demonstrate how marketing strategies contribute to sustainable competitive advantages.

This study examines the impact of the six dimensions of corporate social responsibility, sustainability marketing strategy the mediation influences of marketing image, customer satisfaction, stakeholder acceptance and marketing performance. CSR consists of human development, environmental considerations, community involvement, product and service innovation trend, the attention of consumers, and the competition is an important strategy that will help companies get image enhanced marketing, customer satisfaction, stakeholder acceptance marketing performance and sustainability marketing. Here ISO 14000 106 companies in Thailand, was selected as the sample of the study. The results showed that some dimensions of corporate social responsibility has a significant impact on the marketing strategy, customer satisfaction, stakeholder acceptance and sustainability marketing. Furthermore, the performance of marketing a potential positive effect on the sustainability of marketing. Moreover, the ethical vision and competitive intensity has a moderating influence on the partial corporate responsibility strategy social relationships, marketing image, customer satisfaction, stakeholder acceptance, marketing performance and sustainability marketing. Potential conversation with the results of the research is actually applied in the study

Apply the main steps of marketing planning in practical business situations

• mission statement (or define the mission of the company) has an impact on all the planning throughout the organization, because it is a statement of the company's overall business philosophy. Normally, a set of guidelines, rather than something that is expressed in quantitative terms hard and fast.

• Situation analysis involves assessing the internal and external factors that influence the planning process and asks the question: "Where are we?". This means that the research and analysis of all the information that has an impact on the organization and its operations, internal factors such as individual departmental corporate resources, external factors such as the current political events may interfere with the activities of the company.

• organizational goals requires a management company to offer guidance on how the company to fulfill its mission, and it makes it clear that the company wants to be. This, in contrast to the mission, should be expressed in quantitative terms available.

• strategies to achieve these objectives, concrete ideas on the achievement of corporate goals and relate to choose the way in which the mission is accomplished.

2.1 Analyze critically how strategic market analysis, marketing goals and marketing actions influence marketing strategy

2.1.1 Evaluate the key influences on strategic marketing planning, e.g. analysing competitors; identifying strategic marketing goals.

The creation of a marketing strategy inevitably takes place in a strategic context which is a mixture of internal and external factors. Because of this, it is essential to have a clear understanding of that context before the marketing strategy is constructed. A systematic approach to acquiring that understanding helps to ensure that it is well informed and covers all the relevant factors.

2.2 Demonstrate how an over-all view on the strategic position of businesses and the understanding of their competitors' impact on their marketing strategy

2.2.1 Explain the importance of competitors, e.g. key issues when analyzing a business's competitors

Competitive analysis and strategic evaluation of the strongly corrugated and corrugated SWAK of current and potential competitors. This analysis provides both an offensive and defensive strategic context to identify opportunities and threats. Profiling an average of all relevant sources of competitor analysis in a framework in support of the efficient and effective strategy formulation, implementation, monitoring and adjustment. analysis is an essential part of the corporate strategy. It is argued that most companies are not this type of analysis systematically enough to carry. On the contrary, many companies are working on what is called "informal impressions, assumptions and intuition by goodies information about competitors every manager continually receive." As a result, the traditional sites of the area scanned many companies to the risk of dangerous competitive blind areas due to a lack of robust competitor analysis. Demonstrating the value of information about competitors, such examples of business use to answer questions which provides information on five main competitors

Management for Impact "means that that is what is needed to respond to changing conditions and greater understanding by the adaptation of the project so it will be more likely to achieve its expected impact such changes may result in minor changes to the assets or major strategic reviews .. Each project is managed to be impacted by its own set of limitations. hold the internal and external constraints will help you to have realistic expectations of what can be achieved and set.

2.3 Analyze critically the links between growth strategies and the main types of strategic marketing objectives

2.3.1 Explain the main types of strategic marketing objective, e.g. niche, hold, harvesting and divest objectives

The purpose of strategic marketing analysis is to help managers understand the nature of the industry, the way firms behave competitively within the industry, and how competition is generally undertaken. From this information it becomes easier to determinate exactly what the marketing goals should be. There are several types of strategic objective but four main ones are considered here. These are niche, hold, harvest, and divest goals and are considerable briefly. However the section that follows considers a further objective, namely growth.

2.3.2 Demonstrate the links between growth as an objective and other key strategic marketing objectives, e.g. examine types of growth (intensive, integrative, diversified) in relation to other to strategic marketing objectives

When an organization adopts a diversification strategy they are essentially moving outside

current, known areas of expertise. Through diversification they begin to work with new

products, in new markets, and this brings new risks.

Diversification for single-product organizations is an important development for two main

reasons. First, risk becomes spread across two or more markets, and secondly, organizational

resources such as management, marketing, finance, production, and operations can be used

more effectively and efficiently when deployed across more than one product or market.

Horizontal diversification - occurs when products that are technologically unrelated to

The established product range are introduced to the same market.

Concentric diversification - occurs when products that are technologically related to the

Current portfolio is introduced to new markets.

Conglomerate diversification - occurs when products that is technologically unrelated

To the current portfolio are introduced to new markets.

2.4 Demonstrate how marketing strategies contribute to sustainable competitive advantage

2.4.1 Identify the conditions necessary for sustained competitive advantage, e.g. Porter's ideas for sustainability

He described a category scheme consisting of three general types of strategies that are commonly used by companies to achieve competitive advantage and maintain. These three generic strategies are defined along two dimensions: strategic scope and strategic strength. Strategic scope is a demand-side dimension (Michael E. Porter was originally an engineer, then an economist before he specialized in strategy) and look at the size and composition of the market you intend to target. Strategic strength is a supply-side dimension and look at the strength or core competency of the company. In particular, he has two powers which he felt was most important: product differentiation and product cost (effectiveness) identified.

2.4.2 Assess how different strategies contribute to competitive advantage, e.g. key positions that a business can adopt (cost leadership, differentiation and focus strategies) and their impact in achieving competitive advantage

Differentiate their products in a way to compete successfully. Examples of successful use of a differentiation strategy are Hero Honda, Asian Paints, HLL, Nike Sneakers, By-Pastor, Apple Computer, and Mercedes-Benz. Differentiation that is tuned when the target segment is not sensitive to price, the market is competitive or saturated, customers have very specific requirements that may be under-served, and the company has resources and unique features that allow you to these needs in a response mode that are difficult to copy. These include patents or other rights of intellectual property (IP), the only technical expertise (eg Apple's ability to design or animation prowess PEER), talented employees (for example, a champion sports team or a company of merchants Star brokerage), or innovative processes. Successful brand management is only observed even when the physical product is the same competitors. In this way, Chiquita was able to banana brand Starbucks coffee could be seen, and could sneakers Nike brand. Fashion designers are heavily dependent on this form of image difference.

2.5 Apply the main steps of marketing planning in practical business situations

2.5.1 Demonstrate the process of marketing planning in a business context, e.g. devise outline marketing plans to meet the needs of different sizes and types of business

The assignment gives few guidelines, examples, methods, tools, and the procedure to write a business plan that generates effluent outcomes. There is also online guidance available which are not chargeable and which demonstrates ways in which marketing strategy can be generated or a company to write a basic business plan or a plan related to sales by making use of freely available templates, examples and tools of how specific the statement separately and theories and techniques for marketing strategy and marketing planning, consisting of tools and guidelines for advertising, press, public relations (PR), and media relations, generation of sales through inquiries , advertising copywriting, internet and web marketing, offers, and so on. There is an in-depth information available about sales planning and selling based on current market situations.

Outcome 03: Understand the concept and role of market segmentation and positioning

Differentiate between market segmentation and product differentiation

A small business can differentiate its product using marketing techniques, by physically changing the product or by changing the price. Using marketing, you can create a brand or image in the mind of consumers by pointing out the difference between your product and those of your competitors. For example, your advertising can show that while your product may cost the same as your competitor's, it lasts longer, making it less expensive to use. If you sell tennis shoes, you can reinforce the toes, making it a longer-lasting shoe that appeals to frequent players who wear out their shoes. Lowering or raising the price of a product differentiates you from your competition.

Because consumers have different needs, even when shopping for the same product, it's important to know who is buying your product. This will help you plan your marketing, product development and pricing. You can sell a higher-priced version of your product with extra features in specialty stores to attract young, affluent singles, and sell another version with fewer features at a lower cost to young families or seniors. You can sell one version of your product to consumers, and another to businesses.

3.2 Compare and contrast different targeting approaches

Business plans come in all shapes and sizes. Pragmatism is essential. Ensure your plan shows what your business needs it to show. Essentially your plan is a spreadsheet of numbers with supporting narrative, explaining how the numbers are to be achieved. A plan should show all the activities and resources in terms of revenues and costs, which together hopefully produce a profit at the end of the trading year. The level of detail and complexity depends on the size and part of the business that the plan concerns. Your business plan, which deals with all aspects of the resource and management of the business (or your part of the business), will include many decisions and factors fed in from the marketing process. It will state sales and profitability targets by activity. In a marketing plan there may also be references to image and reputation, and to public relations. All of these issues require thought and planning if they are to result in improvement, and particularly increasing numbers of customers and revenue growth. You would normally describe and provide financial justification for the means of achieving these things, together with customer satisfaction improvement. Above all a plan needs to be based on actions - cost-effective and profitable cause and effect; inputs required to achieved required outputs, analyses, identified and quantified separately wherever necessary to be able to manage and measure the relevant activities and resources.

3.3 Examine critically the process and function of positioning

Your marketing plan is actually a statement, supported by relevant financial data, of how you are going to develop your business. Plans should be based on actions, not masses of historical data. The historical and market information should be sufficient just to explain and justify the opportunities, direction, strategy, and most importantly, the marketing actions, methods and measures - not to tell the story of the past 20 years of your particular industry.

"What you are going to sell to whom, when and how you are going to sell it, how much contribution (gross profit) the sales produce, what the marketing cost will be, and what will be the return on investment."

As stated above it is easiest and best to assemble all of this data onto a spreadsheet, which then allows data to be manipulated through the planning process, and then changed and re-projected when the trading year is under way. The spreadsheet then becomes the basis of your sales and marketing forecasting and results reporting tool.

As well as sales and marketing data, in most types of businesses it is also useful to include measurable aims concerning customer service and satisfaction.

The marketing plan will have costs that relate to a marketing budget in the overall business plan. The marketing plan will also have revenue and gross margin/profitability targets that relate to the turnover and profitability in the overall business plan. This data is essentially numerical, and so needs also some supporting narrative as to how the numbers will be achieved - the actions - but keep the narrative concise; if it extends to more than a half-dozen sheets make sure you put a succinct executive summary on the front.

Amplification of assessment criteria

3.1 Differentiate between market segmentation and product differentiation

3.1.1 Explore the differences between market segmentation and product differentiation, e.g. use examples to demonstrate the difference between market segmentation and product differentiation

A Market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.

Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy. That is, they are likely to have similar feelings and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way and promoted in a certain way.

3.2.2 Examine the contribution of the STP process to successful segmentation, e.g. key activities in STP - segmentation; targeting; positioning

Market segmenting is dividing the market into groups of individual markets with similar wants or needs that a company divides into distinct groups which have distinct needs, wants, behavior or which might want different products & services. Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private. Although is quite different from consumer market segmentation, both have similar objectives. All of these methods of segmentation are merely proxies for true segments, which don't always fit into convenient demographic boundaries.

Assess the limitations of market segmentation, e.g. the focus on customer groups rather than individuals

Segmentation also has its limitations as it needs to be implemented in the proper manner. As segmentation is one of the most important process in the marketing plan or for your business, you need to know what pitfalls lie ahead if you go wrong with your target market segment.

1) Segments are too small - If the chosen segment is too small then you will not have the proper turnover which in turn will affect the total margins and the viability of the business.

2) Consumers are misinterpreted - The right product to the wrong customers. What if your market research says that your customers want a new soap and you come out with a new facial cream. The concept is same, cleanliness. But the concept is completely different.

3) Costing is not taken into consideration -  Targeting a segment is ok but you also need to know how much you will have to spend to target a particular segment. If it is a Sec A segment and you do not have the budget to be present in the places the the Sec A customer visits, then your segmentation is a failure.

4) There are too many brands - Along with segmentation, you also need to check out the competition offered in the same segment from other products. Getting into a segment already saturated will mean higher costs and lesser profit margins.

5) Consumer are confused - If the consumer himself doesn't know whether he will be interested in a particular product or not, than that's a sign that you need to get out of that segment / product.

6) Product is completely new - If a product is completely new than there is no market research to base your segmentation on. You need to market it to the masses and as acceptance increases, only then will you be able to focus on one particular segment.

3.2 Compare and contrast different targeting approaches

3.2.1 Evaluate different approaches to target marketing, e.g. niche, customized, differentiated and undifferentiated approaches

The market selected by a company as the target for their marketing efforts (i.e., target market) is critical since all subsequent marketing decisions will be directed toward satisfying the needs of these customers. But what approach should be taken to select markets the company will target?

One approach is to target at a very broad level by identifying the market as consisting of qualified customers who have a basic need that must be satisfied. For example, one could consider the beverage market as consisting of all customers that want to purchase liquid refreshment products to solve a thirst need. While this may be the largest possible market a company could hope for (it would seem to contain just about everyone in the world!) in reality there are no commercial products that would appeal to everyone in the world since individual nutritional needs, tastes, purchase situations, economic conditions, and many other issues lead to differences in what people seek to satisfy their thirst needs.

3.3 Examine critically the process and function of positioning

3.3.1 Explain the key elements of positioning, e.g. physical , brand communication and customer perception.

We leverage a brand slogan to emotionally connect with a brand's target market. Often a slogan is an emotional call-to-action.Ignite. Learn something. Spark everything.

OhMiBod. Feel the music. The brand slogan lives on most communications. And in the early days of a brand launch, it works closely with the brand name and brand tagline to tell the story of value. A strategically positioned brand becomes known for the business it is in and its unique value; and the brand logo intrinsically symbolizes this value. Once this brand position is established, the logo can be paired up with the brand slogan and often the brand tagline can be retired.

Demonstrate how successful positioning can be achieved, e.g. the use of perceptual mapping to identify how brands are perceived in the context of key attributes and customer value; product positioning strategies.

Positioning is what the customer believes about your product's value, features, and benefits; it is a comparison to the other available alternatives offered by the competition. These beliefs tend to based on customer experiences and evidence, rather than awareness created by advertising or promotion.Marketers manages product positioning by focusing their marketing activities on a positioning strategy. Pricing, promotion, channels of distribution, and advertising all are geared to maximize the chosen positioning strategy.

Outcome 04: Understand the principle and function of the marketing mix

Assess the role of the marketing mix in the implementation of marketing strategy

The marketing mix is a business tool used in marketing products. The marketing mix is often crucial when determining a product or brand's unique selling point (the unique quality that differentiates a product from its competitors), and is often synonymous with the four Ps: price, product, promotion, and place; in recent times, however, the four Ps have been expanded to the seven Ps or replaced by the four Cs

The term marketing mix was coined in an article written by Neil Borden called "The Concept of the Marketing Mix." He started teaching the term after he learned about if from an associate, James Colleton, who in 1948 described the role of the marketing manager as a "mixer of ingredients"; one who sometimes follows recipes prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from immediately available ingredients, and at other times invents new ingredients no one else has tried.

Evaluate the role of product development and branding.

The project management team at Ten Golden Rules helps clients manage their product brand development and assist with strategic product launches onto the web. Our South Florida strategic consulting firm will review your current product brand development efforts and develop in-house standards for product development that compliments your existing products' brands.

Standards for Product Brand Development

Our team of project managers uses a strict group of standards for product development to ensure from start to finish your products properly showcase your company's brand. Our process for a strategic product launch includes:

• Initiating - reviewing existing product brand development and brainstorming ideas to launch the new product.

• Planning - understanding the scope of the strategic product launch and developing a timeline with costs and resources needed.

• Executing - working side-by-side your company to ensure the project is done on time.

• Controlling - reviewing the risks involved and managing any issues the crop up during the course of the project.

• Closing - finishing up the last minute details to your strategic product launch.

A proven process, our standards for product brand development ensure your projects are completed in the most effective and efficient manner, allowing your senior executives to optimize the use of company's resources and enable your employees to concentrate on your customers. Ensure fast time-to-market, use Ten Golden Rules' project management services for your next strategic product launch.

Analyze critically the impact costing and pricing decisions have on competitive advantage

A firm's competitive advantage is the unique and valuable combination of capabilities a company exploits to deliver higher profits relative to the competition.  A company's competitive advantage can only be confirmed if the customers truly deem it unique and valuable - and pay the premium.  The definition is very intuitive to most executives  - as they understand that price-cost=profit and they are either getting more, less, or a parity part of this equation.  However the danger we observe on many occasions is that the dialogue on competitive advantage becomes too internally focused without testing the external factors that effect the three components of this Price-Cost=Profit relationship.

The purpose of this study is to investigate the influence of Activity- Based Costing (ABC) effectiveness on production process efficiency, cost advantage, product planning proficiency and financial performance. In addition, this study investigates the effect of antecedents; cost accountant competency, corporate resource facilitation and price competitive force on ABC effectiveness. ABC effectiveness includes cost driver fitness, cost calculation accuracy, cost information creditability, and cost reporting usefulness. The results show that ABC effectiveness is significantly and positively related to production process efficiency, cost advantage, product planning proficiency. Production process efficiency, cost advantage, and product planning proficiency are significantly and positively related to financial performance. Moreover, cost accountant competency, corporate resource facilitation and price competitive force have direct positive influences on ABC effectiveness. Contributions and suggestions for future research direction, and conclusions are presented.

Examine critically the role and purpose of marketing communication as part of the marketing mix.

The communication process is sender-encoding-transmission device-decoding-receiver, which is part of any advertising or marketing program. Encoding the message is the second step in communication process, which takes a creative idea and transforms it into attention-getting advertisements designed for various media (television, radio, magazines, and others). Messages travel to audiences through various transmission devices. The third stage of the marketing communication process occurs when a channel or medium delivers the message. Decoding occurs when the message reaches one or more of the receiver's senses. Consumers both hear and see television ads. Others consumers handle (touch) and read (see) a coupon offer. One obstacle that prevents marketing messages from being efficient and effective is called barrier. Barrier is anything that distorts or disrupts a message. It can occur at any stage in the communication process. The most common form of noise affecting marketing communication is clutter.

4.5 Explain how retailing and channel management, as part of the marketing mix, contribute to competitive advantage

Channel Management. Yet another sales and marketing phrase that is thrown around like everyone knows what it means. But so few companies really comprehend channel management in a way that really helps them. It's really no wonder. Sales channels (being the conduits by which we distribute our products to the end-user) come in many shapes-from direct, to the web, to the traditional retail environment. And, we're just doing whatever we can to get any business from any of them! But is that the most efficient and effective approach?

Goals. Define the specific goals you have for each channel segment. Consider your goals for the channel as a whole as well as individual accounts. And, remember to consider your goals for both acquisition and retention.

Policies. Construct well-defined polices for administering the accounts within this channel. Be sure to keep the unique characteristics of each segment in mind when defining policies for account set up, order management, product fulfillment, etc.

Products. Identify which products in your offering are most suited for each segment and create appropriate messaging. Also, determine where your upsell opportunities lie.

Sales/Marketing Programs. Design support programs for your channel that meet THEIR needs, not what your idea of their needs are. To do this, you should start by asking your customers within this segment, "how can we best support you in the selling and marketing of our products?" That being said, the standard considerations are product training, co-op advertising, seasonal promotions, and merchandising. Again, this is not a one-size fits all, so be diligent about addressing this segment's SPECIFIC needs in these areas.

Amplification of assessment criteria

4.1 Assess the role of the marketing mix in the implementation of marketing strategy

4.1.1 Examine the usefulness of the product life cycle concept, e.g. applying the product life cycle concept to product class, product form and product brand.

PRODUCT LIFE CYCLE

Products pass through a series of stages. Successful products progress through four basic stages: (1) Introduction; (2) Growth; (3) Maturity; and (4) Decline.

The product life cycle concept provides important insights about developments at the various stages of the product's life. Knowledge that profits assume a predictable pattern through the stages and that promotional emphasis should shift from product information in the early stages to product promotion in the later stages should allow the marketing manager to improve planning.

4.1.2 Demonstrate the need to employ different strategies at different stages in the product life cycle, e.g. explain the features of each stage in the product life cycle; identify strategies that could be employed at each stage.

Here is a brief description of what is expected to take place in the stages of the life cycle:

1.   Initiation starts with the initial conception or discovery of the product idea and runs until it has been evaluated, has become specific, and has been approved for development.

2.   Development covers the various activities that transform an abstract product idea into a concrete prototype model of the product (if it is a tangible good) that can be manufactured.

3.   Market plans and tests is our term for the final gestation phase, in which the product would pass its last tests and everything be ready for commercializing it.

4.   Introduction starts when the offering is made available to buyers, probably on a limited scale, and continues as it is tried by innovators and experiences show slow sales growth.

5.   Growth begins when numerous treys like the product, word of its virtues spread, and the product sales "take off". Since the product is not established until this takes place, we include it in this chapter of "evolving products6.   Maturity comes eventually, for the halcyon days of sharply rising demand vanish when most potential buyers have become actual customers. This may be a very long period during which demand decelerates and then reaches a plateau.

7.   Decline sets in persistently when the product eventually becomes obsolete. When it actually starts to toboggan, it is time to give the product a merciful death and burial.

The marketing strategist should never assume that the PLC operates inexorably, but should rather examine a brand's or product's actual position carefully. Further a serious effort should be made to find a winning strategy can revive a slumping demand, rather than summarily abandoning the possibility. In that context, the PLC does pose a hypothesis of product or brand behaviour that is useful for sales forecasting. It also enables us to clarify strategies in terms of their timeliness.

4.2 Evaluate the role of product development and branding

4.2.1 Identify the stages in product and service development, e.g. the importance of innovation; the process of adoption

The first thing to consider in product development is what your customer wants.

What are customers buying now?

What will they want in the future?

What would they buy if it were available?

It is important to identify NEEDS that potential customers may not even know they have. Who thought 20 years ago that we would be wearing sandals that can be worn in water or hiking up a mountain? Or that we would wear underwear that shows through our tops? Successful product development addresses customer needs

Examine the role of branding, e.g. different types of brand; brand associations and personalities; brand equity

ROLE OF BRANDING IN SOCIAL MARKETING PROGRAMS

Although branding traditionally has been associated with products and services, there has been an increasing realization that branding principles are relevant to other entities such as people, places, ideas, and so on. Applying branding to social marketing programs and public health issues, however, poses several unique challenges. Social marketing, as any marketing, involves exchange. Individuals are asked to engage in certain personally and/or socially desirable behaviors. The benefits they receive in return for these actions, though, may be fairly intangible and seemingly removed, especially with respect to the more immediate benefits they might receive in exchange for engaging in undesirable behaviors.

Branding may provide an important function in social marketing programs by helping individuals to communicate and signal to themselves as well as others that they are engaging in desirable behaviors so that are better able to realize more immediate benefits and receive positive reinforcement. For example, by displaying visible symbols or by describing themselves with a categorical label that, in either case, contained specific meaning with respect to a public health issue, individuals may be able to achieve greater immediate satisfaction if they feel that they have been "credited" or acknowledged as having avoided undesirable behaviors or having embraced desirable behaviors.

In other words, branding personally and/or socially desirable behaviors could help individuals receive more immediate rewards from the public approval and recognition of others as well as from the benefits of self-expression and personal approval and recognition. Each encounter with another person may be seen as a "transaction" in that the individual receives positive feedback, either explicitly or implicitly, in return for having been able to behave in a proper way. In this way, branding would play the role of making the benefits of socially desirable behavior more immediate and more tangible to an individual on a continually repeated basis over time.

4.3 Analyze critically the impact costing and pricing decisions have on competitive advantage

4.3.1 Explain the relationship between price and cost, e.g. the concept of pricing and costing; price elasticity of demand; customer perceptions of price

What's the relationship between price - the ability to charge for your product - and cost - how much it costs you to produce it?

Price is a function of supply and demand.  Notice the word "cost" doesn't occur there.  It is true that cost is, over the long term, a lower bound for price - otherwise you'd go out of business.  It is also true that high upfront fixed costs can create barriers to entry and therefore lower supply.

The only case in which price is determined by (variable) costs is in a commoditized market.  A market is commoditized when competing products are effectively interchangeable and therefore customers make decisions based solely on price.  In commoditized markets, price tends to converge toward cost.

In non-commoditized markets, variable costs have no effect on price.  Most information technology companies are not commoditized; therefore variable cost and price are unrelated.  That is why there can exist companies like Google and Microsoft that are so insanely profitable.  If the cost of producing and distributing a copy of Microsoft Office dropped tomorrow, there is no reason to think that would affect their pricing.  The most profitable industry historically has been pharmaceuticals, because they are effectively granted monopolies, via patents, reducing the supply of a given drug to one.

Demonstrate the impact costing and pricing decisions have on competitive advantage, e.g. the competitor orientated approach to pricing; pricing policies

Marginal cost pricing strategies are difficult to implement, but generally yield better results than full cost pricing. They are characterized by a market-facing approach that tries to estimate and influence demand for a product. The business sets production targets and bases pricing on what it costs to produce additional units at that point. Full cost pricing is inward-looking. It is characterized by a focus on the product, and how much it costs to make it. Businesses set prices by using the full cost of making the products at the set production volume. Such a strategy does not maximize profits.

If a business does not apply the right price to a product or service, the business can adversely affect the demand for the product. An organization should consider many different factors before ultimately pricing an item. No single formula applies for how a business should set prices; however, businesses need to make sure they set prices competitive with similar offerings from similar businesses. Fixed pricing is typically applied by organizations that offer high-volume service. Fixed pricing is also commonly used by businesses to get customers in the door to showcase other products or services.

4.4 Examine critically the role and purpose of marketing communication as part of the marketing mix

4.4.1 Examine the nature, purpose and scope of marketing communications, e.g. the role of marketing communications

The objective of this Directive is to establish a harmonized framework for the regulation of electronic communications networks and services. It also includes certain aspects of terminal equipment to facilitate access for disabled users. It contains horizontal provisions serving the other measures: the scope and general principles, basic definitions, general provisions on the national regulatory authorities, the new concept of significant market power, and rules for granting certain essential resources such as radio frequencies, numbers or rights of way. In response to the convergence of technologies and the need for horizontal regulation of all infrastructures, the new framework is no longer limited to telecommunications networks and services but covers all electronic communications networks and services. This includes fixed-line voice telephony, mobile and broadband communications and cable and satellite television. On the other hand, the content of services delivered over electronic communications networks, such as broadcasting content or financial services, is excluded, as is telecommunications terminal equipment to facilitate access for disabled users.

This Directive requires the adoption of national measures in terms of access to electronic communications with a view to respecting the fundamental rights and freedoms of natural persons.

Demonstrate the various roles of marketing communications, e.g. contribution of marketing communications to the marketing mix; moulding audience behaviour through differentiation, reinforcement, information giving and persuasion

Marketing communication is a strategic part of the marketing process and not merely a single part thereof. Communication is the message that is relayed to the customer rather than the nuts and bolts of the technology that delivers it. Communicating with your customers enables you to deliver your message to them so that they will react to it. Consumers are affected by the communication a brand has with them. This communication as well as the experience they have add to the brand's value in the mind of the consumer and builds on their cognitive and emotional ties to a brand. Think of it this way: communication is the message that is delivered to the client; marketing is the means of getting it there. Therefore, communication is not just a part of the marketing mix but also should be integrated into your customer service process -- from the accounts payable department all the way through to your sales staff and even the CEO of your company. It is your message to the customer. The message you wish to communicate with them, your ethos and way of thinking.

4.5 Explain how retailing and channel management, as part of the marketing mix, contribute to competitive advantage

4.5.1 Examine the role, function and importance of retailers in the distribution channel, e.g. different types of channel structure; retailers and other intermediaries

Buying a computer in the post, petrol at a supermarket, mortgages over the phone and phones themselves from vending machines are just some innovations in distribution which create competitive advantage as customers are offered newer, faster, cheaper, safer and easier ways of buying products and services. Without distribution even the best product or service fails. Author Jean-Jacques Lambin believes a marketer has two roles: (1) to organize exchange through distribution and (2) to organize communication.

Physical distribution, or Place, must integrate with the other 'P's in the marketing mix. For example, the design of product packaging must fit onto a pallet, into a truck and onto a shelf; prices are often determined by distribution channels; and the image of the channel must fit in with the supplier's required 'positioning'. You can see how Coca Cola further integrate the timing of distribution and promotion in the Hall Of Fame later. In fact, they see distribution as one of their "core competencies".

Assess the contribution of distribution channels design, structure and strategy to achieving competitive advantage, e.g. contribution of logistics and channel management; key considerations in managing a channel strategy

Distribution strategy is influenced by the market structure, the firm's objectives, its resources and of course its overall marketing strategy. All these factors are addressed in the section on selecting Distribution Channels. The first strategic decision is whether the distribution is to be: Intensive (with mass distribution into all outlets as in the case of confectionery); Selective (with carefully chosen distributors e.g. specialty goods such as car repair kits); or Exclusive (with distribution restricted to up market outlets, as in the case of Gucci clothes). The next strategic decision clarifies the number of levels within a channel such as agents, distributors, wholesalers, retailers. In some Japanese markets there are many, many intermediaries involved. Next comes a sensitive strategic decision whether to go single channel or multi-channel. Some producers, like Manchester United FC, use multi-channels - they use many different routes, direct and indirect, to bring their products to their customers. Multi-channel Systems like this are common where intensive distribution is required. So direct marketing is combined with indirect marketing through intermediaries. Then comes the next level of strategic decisions concerning strategic relationships and partnerships. Two common strategies are Vertical Marketing Systems and Horizontal Marketing Systems. Vertical Marketing Systems involve suppliers and intermediaries working closely together instead of against each other. They plan production and delivery schedules, quality levels, promotions and sometimes prices. Resources, like information, equipment and expertise, are shared. The system is usually managed by a dominant member, or 'channel captain'. VMS is more flexible than vertical integration where the manufacturer actually owns the distribution channel, for example, Doctor Martens boot manufacturers own their own retail store. Horizontal Marketing Systems occur where organizations operating on the same channel level (e.g. two suppliers or two retailers) co-operate. They then share their distribution expertise and distribution channels. This can speed up the time taken to penetrate the market. There is room for creative alliances here. See Southwestern Bell's alliance with Granada TV Shops in the Hall Of Fame.

Outcome 05: Able to distinguish between marketing in the commercial and not-for-profit,

including public sectors.

Compare and contrast marketing strategies in commercial and not-for-profit organizations, including the public sector

In other words, strategic planning determines where the organization is going the next year or more, how it will happen and how it will know if it is or is not. The development of a strategic plan is usually the entire organization, while the focus of a business plan is usually on