Processes (marketing) Flashcards
SMEIDI
situational analysis – SWOT, product life cycle
market research
establishing market objectives
identifying target markets
developing marketing strategies
implementation, monitoring and controlling
Situational analysis
WHAT: it involves analysis of the BUS position or the product
→ Sets out the present state of the BUS
→ Description of the environment in which the BUS is operating
WHY: Helps marketers figure plan effectively which strats are most appropriate for the BUS, it may reveal opportunities to take advantage of or identify key challenges that must be addressed.
HOW: 1. SWOT (Strength, weakness, opportunity, Threats)
2. PLC (Product life style)
SWOT - Strengths
- Narrow product range allows for high quality in the products they do have (ISO adherence) 2. Strong Brand image No.1 brand (interbrand) → Continued investment in advertisement for the brand to reflect strong brand image → More than 516 stores → ability to price at a premium 3. Strong financial position (rev $275b NP $65b) allows for $10.5b investment in tech and other expansionary activities
SWOT - Weaknesses/opportunities
Weaknesses: 1. Narrow product range → 63% of all sales from phones means that they are heavily reliant 2. Software bugs IOS 10.3 used to mitigate the weakness 3. Single source suppliers for key inputs ( TSMC only supplier for the A9 chips)
Opportunities: 1. Expansion into new markets (Brazil, India and China → Place strat with stores in new regions (40 new stores in China) 2. Emerging Tech → Such as AR and self driving cars → seeking to expand to take advantage of these new segments 3. Growth in Music streaming → 3.6 billion dollar acquisition of beats has allowed the BUS to expand their streaming services → result in $10b rev
SWOT - Threats
Threats: 1. Aggressive competitors (samsung, google, spotify etc) 2. Global eco outlook uncertainty 3. Supplier risks → Not many suppliers
SWOT - Product Life Style (PLC)
WHAT: PLC allows a BUS to analyse it’s products at various stages through it’s life cycle.
DESCRIBE: 4 stages of the life cycle are INTRO (Slow sales little profits → APPLE PAY), GROWTH (Sales rapid increase, competitors growth, profit growth) → Apple TV/Iphone 12), MATURITY (Sales level off, market saturation, profits fall → Mac Book), DECLINE ( Sales fall, outdated product, new product replaced it → Iphone 7)
→ Used to inform what strat to use
Market research WHAT
WHAT: Process of collecting, recording and analysing information concerning a specific issue
Quantitative research: Data represented numerically and can be analysed statistically
Qualitative data: Obtaining rich and detailed info
ADV: 1. Strats can be targeted 2. Effective allocation of resources
DIS: 1. Time consuming 2. Costly 3. Changes to the 4P’s which can be annoying
Market research steps
- Determine information needs → Need to work out what information is needed to solve the problems (branding?)
- Data Collection - Primary data → Involves original research to solve the problems e.g focus groups for in depth discussions, surveys and experiments
- Data Collection - Secondary Data → Facts and figures that have already been collected for other purposes, may be cheaper for a BUS but may not be specific to the BUS requirements e.g ABS, Industry reports
- Data analysis and interpretation → Looking for meaning and relationships of the data, conclusions need to be drawn
Establishing marketing objectives
WHAT: Marketing objectives set out what the goal of the BUS is regarding marketing efforts (SMART principle)
Key objectives → Market share, expansion of products, expansion into new geographical markets, meeting customer expectation/service, achievement of profit objectives
Identifying target markets
WHAT: Refers to the group of actual or potential buyers of the product
→ The customers within the target market share similar characteristics such as age, income, lifestyle, location and spending patterns
WHY: By understanding your target market, a BUS can then develop and focus new products and marketing strategies to meet the needs of this target market.
(Think about demographics)
Developing Marketing Strategies: Product and price
Product:
WHAT: The physical good or service (tangible or intangible) → Image in the mind of customers
Branding → Refers to the reputation that a BUS or product has developed over time - Warranty , After sales service, Packaging, Iphone and apple music
Price:
WHAT: Price is the money the customer pays for a product
→ Influenced by the degree of comp in the market, branding of products, customer loyalty, PLC
Implementation and Controlling:
Implementation:
WHAT: Where the marketing plans are put in place → Ensuring the marketing plan achieves its goals using a minimum resources
Controlling:
WHAT: Developing a financial forecast → Comparing actual and planned results (corrective action)
Developing financial forecasts, comparing actual v planned results
Developing Financial Forecasts:
WHAT: Detailed plan that outlines costs and revenues for each marketing strategy
WHY: Planned and real costs are compared results in cost benefit analysis
HOW: Cost estimate → How much the marketing plan will cost → Market research, product development, promo, advertisement, packaging, distribution
Revenue estimate → How much revenue the marketing plan will generate
ACTUAL V PLANNED:
Take corrective action if the results are not as planned through the use of various STRATS
Monitoring
WHAT: Involves watching what happens when the product is placed in the market
SALES ANALYSIS: (By country, by product, by region, by sales rep, by retail store)
MARKET SHARE ANALYSIS: Examines the sales performance of a BUS and compares it against that of it’s direct competitors
PROFITABILITY ANALYSIS: Breaking down the total marketing costs into specific marketing activities to assess effectiveness of each activity
Developing marketing strategies: Place and Promo
Promo:
WHAT: Refers to the activities a BUS uses to communicate with customers about the good or service
Promo Mix → Ads, Publicity, comp, personal selling, samples
Place:
WHAT: Place refers to the distribution process and the effectiveness of getting the product to market (direct/indirect/channels of distribution)
