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AC1.1

Discuss the role of strategic marketing in an organization? (This discussion should

include difference between strategic marketing and tactical marketing. Moreover,

established models and definitions also be used in developing this discussion.)

Strategic Marketing:

It is the identification of different sustainable competitive gain that a firm fix to operate

service in the market as well as allotment of capital to execution those. It involves analysis of

different models for external and internal environment and orients a plan for the market

(Chernev, 2009).

Difference on Strategic and Tactical Marketing:

Strategic marketing focus on the manipulation and announcement of the message that means

it emphasize on what should say and whom to say. Moreover, the tactical marketing involves

in implementing the message. Strategic marketing is content and contrary tactical marketing

is execution of that content (Doyel, 2009).

"Tactical Marketing involves with the carrying out or implementation of the companys

marketing plan, for example, producing lead, introducing media, generating marketing tools,

and execution a follow-up system. Additionally, it is the process of disseminating the

company message.

On the other hand, "Strategic Marketing" must deal with the thought process from the

analytical ability it comes out to show the way what we should do, how should we do it, and

who should do what. Additionally, it says the content of marketing message.

Strategic marketing set off with consideration of customers and the external environment as

well as many other things, for example, emphasizing on the issue why the company buys,

what buys. If we want to know the answer of this question we need to go through the eyes

of that company.

Some companies go through the way of selling more before finding out the way of providing

a solution to customers need.

Strategically, marketing programs and advertising go through the concentration of intended

market forecast as well as make easy decision-making. This process involves lessening risk

for captivating the after that step in the buying process.


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By consideration what's significant to the companys target market, a strategy forwarded to

acquire qualified forecast to identify and make further steps. After placing the strategy, the

tactical execution just consists of testing and implementing strategic plan.

AC1.2

Explain the processes involved in the strategic marketing? Examples and illustrations

from a real company should be given to show your understanding of the concept.

Involved Process in Strategic Marketing:

A strategy for performing yearly wide-ranging re-examine of market and opportunity,

therefore, make long-term tactical decision except the disruption of daily sales as well as

marketing activity. Day by day decision subsequently shaped to the firms whole tactical

marketing goal.

It's significant in favour of a strategic marketing planning process to seem at the corporation

commencing the clients view point by enquiring question with the intention of having a

lengthy horizon, for example:

What requirements or trouble root clients to think buying from this farm over others?

What enhancement and upgrading in the customer's private or commerce life is capable of

improve by us?

Which segments of market customer are paying attention to products or service of our

company?

Which customer motivation or value guide persons to make a decision to buy the desired

products of a company?

What modification or trend recently affects wide-ranging attention or magnetism to the

desired company products?

Developing the Strategic Marketing Plan

This process involved with following stage:

1. Segmenting the market

On the base of Geography On the base of Demography On the base of Psychograph


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Pattern of Behaviour

2. Profiling the market segment Potential returns or profits Potential Market share Potential Profitability

3. Developing a market segment and marketing strategy. Market leader or extension for product line. Group or accumulation marketing otherwise marketing to target people. Selling directly and indirectly.

Now strategic marketing plan can be introduced after discussing the issues like customer

interest, market segments as well as the buying procedure.

Situational Analysis:

It includes the answer of the current position of the company. In this stage, we have to know

the characteristics of the market, factors that affect success, competition and comparison

among products, technological influence, social and legal environment, opportunities and

problem.

Marketing Objectives:

This is about the desire of the management to see the company position in future. It includes

product profiling, targeting market and targeting volume in desired currency

Marketing Strategies:

It implies the way of action by which the firm try to attain its objective. Here the plan on

product, distribution, promotion, price, and marketing strategy projection is necessary.

AC 1.3

The process of strategic marketing does not take place in a vacuum. Evaluate the links

between strategic and corporate strategy by giving examples of some of these links.

Strategic Marketing and Corporate Strategy:

Strategic marketing involves the way of thought process which includes generating a way of

conducting business process. What the company will do in terms of marketing on the other


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PESTLE analysis

SWOT analysis

Porters Five Forces

Mckinseys 7 S Model and

Marketing Audit

PESTLE Analysis:

It has been used to describe the external factors of the company from all the aspects of

political, economic, social, technological, legal and ecological aspects that have to face by the

company. During the plan all these aspects are analyzed and decision made to overcome the

weakness and central attention to the continuity of the business and try to avoid different

problems in these aspects. The company generally has no control over its external

environment.

SWOT Analysis:

It describes the strength, weakness, opportunities and threats that are in the field of the

business for the company. It has been used to assess the internal environment strength.

Generally, the company has the control over its internal factors.

Porters Five Forces Model:

This model generally designed to depict the entire scenario ofsuppliers power of bargaining,

buyers bargaining power, the availability of threat of alternative, pressure of new entries and

competition among the active companies in the manufacturing.


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Mckinseys 7S Model:The 7S model of Mckinsey provides the strength of the internal culture of the organization. It

assesses all facts including structure, strategy, system, shared values, style, staff and skills.

Marketing Audit:

This is widespread, methodical, self-regulating as well as periodic; assessment of marketing

activity of any company with an outlook to determine dilemma or crisis locale and prospect

as well as recommendation of an action plan to improve the companys marketing

performance.

AC2.2

When strategic plans are put onto operation (implemented), day to day tactics decisions

have to be made. Discuss the links between strategic positioning and marketing tactics?

(Provide examples of how tactics are related to strategic positioning decision.)

Marketing Positioning:


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Positioning approach, in marketing, to denote the procedure through which marketers strive

to generate a picture or uniqueness to their target market for its brand, product, service or

organization.

Marketing Tactics:

A process or set of exercises occupied in achieving an aim, an end, or a goal. In general,

marketing tactics related to action engaged by a firm or individual which are intended to

grounds individuals would like to buy their commodities, product or services. It engages

psychological aspects to gear up customers thinking to buy their commodities or products or

service. Marketing tactics includes the process of 7 P.

Product,

Pricing,

Place,

Promotion,

People,

Process and

Physical Evidence
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Product:

The product that has been offered by company for customers and required modification to

meet the need of the customers that are considered during tactics of marketing. What the

products offering to the customers and what percentage change needs to meet the customer

needs.

Pricing:

Price is really a very essential in tactic marketing. To determine a reasonable price

considering all the costs and target market, it is important determinant. Price is generally set

to sell more unit products for generating profit. Pricing aims to contest the opposition, or

charging a first-rate charge designed for an excellence product as well as service.

Place:

It determines where and the product will be sold. Here distribution channel is important to

disseminate product.

Promotion:

It supplies the way of reaching to the customers through different advertising system, direct

mailing, TV advertising, newspaper advertising, get one by one free, free sampling etc way of

advertising can be used.

People:

This point includes ensuring the number of employees having proper training and

development.

Processes:

The correct procedures motivate ensuring that the company offering a reliable service with

the intention of suit to customers and consumers.

Physical evidence:

The manifestation of company workforce as well as location is capable of affecting how

clients distinguish this business.

AC 2.3

Discuss the place that relationship marketing has in a strategic marketing plan?

Analyze the merits of using this marketing techniques in this strategy?

Relationship Marketing:


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It is defined as one appearance ofmarketing oriented as of straight response marketing

campaign which highlights client maintenance as well as contentment, rather than a leading

focal point on sale transactions.

Relationship Marketing is different as of other types of marketing where it has been

recognized the long term value of patron relations as well as expand statement further than

invasive marketing and sales promotional messages.

Strategic marketing has the objective to increase sales and maximize profit as much as

possible and doing so is related to direct relationship to customers. It builds relationship and

maintaining and developing long term relationship between company and customers. It

creates loyalty customer.

Therefore, the rule of relation marketing in the strategic marketing plan includes the

following. Loyal customers are more sensitive to price and quality. Loyal customer

recommends other people to the company. Therefore, relationship marketing has a link to the

strategic marketing as there is a need of providing emphasizes on the relationship marketing

during doing plan or strategy formulation.

AC 3.1

Use appropriate marketing techniques to ascertain growth opportunities in a market.

You need to provide real time data from the company to support your research. (i.e.

statistical data, economic data, data from the organization and data from the markets.)

Growth Opportunities:

Company must assess the growth opportunities against their opponents, particularly in market

whatever it is in local, national and international settings. In this case, SWOT analysis

especially the opportunities are calculated in the assessment of growth opportunities. It

determines the area of buyer need and concentration that can make the company to lead to the

high satisfaction and profitably. Three sources can be identified for market opportunities.

Opportunities are those aspects that can be utilized for the better business profit.

The initial way is to provide something that is in short in supply. This necessitates modest

marketing aptitude because of the obvious need. Serving the existing product in a new way or

better way from the opponent is the second way. There are a number of traditions to expose

likely artefact or service development. The third and final option generally guide to a very

original, innovative and fresh manufactured goods and service. (Kotler, 2009)

Opportunities for Raynair:
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The company offer a numerous point-to-point provision which permit company to stay away

from cost of services for involving passenger, expenses of baggage reassign and outlay of

transit passenger assistance.

Growing population and mix up of EU nationals for business purpose and globalization

causes.

Growth in the income level of the people.

The company offering 94% online booking facility, so it is easy to follow up.

New routes in the EU market are open for Ryanair to launch.

Its low fair policy will create a better opportunity for the company and business.

The United States and the open sky agreement in Europe might be a great starting place to

grow up their routes as well as passengers inwards.

In non-European markets it plans how could expand of its operations in the near future.

Sometimes it offers free flights to attract the passengers.

AC 3.2

Plan appropriate marketing strategies options and apply them to organizational context

which you are using.

Strategic Marketing Option:

The marketing strategy can be determined by one of the strategy from the product market

extension grid, popularly called Ansoffs matrix. It is most popular method and employed by

the business firm to grow their business. This strategy formulated depending on the two

variables of market and products. This matrix shows only four available options.

Market Penetration

Product Development

Market Development and

Diversification


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Market Penetration:

This option involves selling as much as possible in the existing market. This may be achieved

by heavily advertising and focusing on the sales promotion.

Market Development:

This option involves in expanding the product to the new market that means the current

product selling to the new customer of a new area. New geographical area, new market

segment and new users, and customers.

Product Development:

This approach requires developing the present product in terms of quality and quantity. This

may follow adding new feature to the current product.

Diversification:

This strategy involves in developing new product for new market. This provides a turn for the

existent business. The virgin group has a very good success in their current diversification

efforts.

Appropriate Option:

The most appropriate option will be concentrate on the penetration of the market. If the

organization wants to penetrate market it should change slightly the current policy,

promotion system and others. Most of all it will find difficulty to maintain low-cost policyof business. The low-cost maintenance provides cutting different facilities inside the flight


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and minimizing different services. For example, Disability Rights Commission (2004)

criticized Ryanair as it refused to provide wheelchairs for disabled passengers. In this case, If

Ryanair tries to provide as much as many facilities the cost will increase. Then, it wont

remain in the low-cost position and for that reason they have to count loss or loss of more

profit. If the price increases the customer have alternative for the better service. To survive in

the market they need to penetrate on current situation. Despite of facing some additional

expenses, it should concentrate on the current situation as it is still in the growth stage.

AC 3.3

Create appropriate strategic marketing objectives for your selected market of the

organization? (The objectives should logically follow from the research undertaken on

the organization and the selected market.)

Strategic Marketing Objectives:

Ryanairs objective is to set up itself as Europes foremost low-fares scheduled traveller

airline. Ryanair aims to offer low fares that generate increased passenger traffic (Mayer,

2007). Key fundamentals on which Ryanair strategy based on:

Low fares: The most important strategy for Ryanair is to provide low fare in the journey.

Choice of routes: It use secondary airport for its business.

Low Operating Costs: Ryanair tries to maintain as much as low cost in their operation. Four

expanse areas are managed to control and maintain low cost in each of the following section.

(i) aircraft apparatus expenses; (ii) employees payment; (iii) client provision expenses;

and (iv) airport right of entry and management expenses.

Online Service: It has avoided the medium for booking to minimize the cost associated with

travel agent.

Ancillary Services: Ryanair propose a diversity of ancillary, profit-generating services

together with on the trip in airbus for different commodities, beverage and food sales,

reservation service to live or stay publicity promotion and marketing, travel insurance, rent a

car facility and rail and bus tickets. Ryanair distributes car rentals, accommodation services

and travel insurance through both its website and its traditional telephone reservation offices.

Management believes that providing these services through the internet allows Ryanair


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to reduce costs on a per unit basis, while at the same time increase sales. Ancillary

revenues, excluding charters, greater than before by 68.1% (2002: 44%) and now accounts

for 11.7% of total revenues compared to 9.4% in 2002.

Objective and Aim:

One of the aims for Ryanair is to provide maximum amount of routes with low fare in the

European region.

Increase the Frequency of Existing Routes

Open New Routes in Europe

Develop Its Smaller Continental Operating Bases

Expand into Central/Eastern Europe

Expand into North Africa

Aggressively seek to take market share from the Charter Market

Customer Service Overhaul

Continue to find ways of reducing costs

Ryanair 100% online

AC 4.1

Changes in external environment are inevitable and so are the resulting impact on an

organizations marketing strategy. Describe the impact of changes, identified in the

external environment of your organization, on its marketing strategy?

Change in External Environment: It has been done on the basis of PESTLE Analysis.

PESTLE Analysis:

This external process analyze follow the following aspects. PESTLE stands for:

P= Political factors

E= Economic factors

S= Socio-cultural factors

T= Technological factors

L= Legal factors

E= Ecological factors

Political Factors:


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Taxation policy, privatization policies, environmental legislations, health and safety

regulation, European directives and governmental stability are the political issues. In this case

these issues are not out favour of Ryanair.

Economic Issues:

Inflation and unemployment level remained low, Gross Domestic Product and household

disposable income has risen that are favoured situation for the Ryanair.

Socio-cultural Issues:

Changing life style, changing in consumer taste and preference and demographic changes are

the real threats for the Ryanair.

Environmental Issues:

Different environmental campaign groups creating pressure to lessen greenhouse gases.

Legal Issues:

Different laws provided by government also restricted the sector due to terrorism-related

alerts. Restriction related to the size, number, and content of bags allowed through security

led to significant delays at UK airports and a substantial number of flight cancellations.

However, these problems are not going to continue forever.

AC 4.2

Conduct an internal analysis of to identify current strengths and weakness in their

marketing strategy used by the organization of your choice?

SWOT Analysis:

SWOT analysis provides the internal scenario especially strength and weakness and partially

the opportunity and threats from others are included here which has been faced by a

company. (Kotler, 2008).This SWOT analysis can be applied on Ryanair Airlines which

given bellow:


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Strengths:

Strength is the companys internal capability, values attitude, management ability to handle

the business in terms of any unwanted and desired situation. (Brassington,2003)

A superior brand name is extremely significant for the firm and business. Ryanair isvery suited and the fit documented organization because of its good quality services.

Passenger is able to reserve over the internet as well as the opportunity for getting

answers of all questions.

Irish owned Ryanair is the foremost operative airline in the UK market among all theleading foreign owned airlines.

It is the leading low cost transporter as well as does all the flight from the UK. It is very successful in this business in terms of profit, flight number and passengers

take wing all over the world as well.

Ryanair also praised because of its management system that providing commitmentfor low fare.

It possesses four year energetic fleet of Boeing 737-800s. It deals strong bargaining power in airport. Ryanair contains greater seat occupancy in lowest fares.

Weakness:

Weakness referred to interior rudiments that might hinder with the companys capability to

attain its objective compared to opponent. The shortage of company ability because of

strategy or whatever the reason is, it known as weakness.(Kotler,2009)

Ryanair is disapproving of regarding to trade union policy, fee, and inadequatecustomer services and disingenuous publicity and promotion system.

Its growth possibility is restricted in Niche Market. Servicing system is poor as people skills. Sometimes in fare value its ticket price is higher than previous price which extremely

sensitive.

In terms of market growth position, secondary of Ryanair airports may become lessattractive.

Lying face down to press. Ryanair is supposed as conceited as well as the smallestamount occurrences obtain much press coverage.


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Niche market. Possible expansion is restricted Sometimes it has a far distance to its flight then the desired distance that has been

advertized. This is generally, one kind of inconvenience.

Service is not near to standard as the employee skill is also poor.

Ryanair is tremendously responsive to change in charges always try to increase in fairvalue.

Opportunities:

A marketing opportunity is a part of purchaser necessitates as well as interest that a business

has a high possibility to satisfy earning profit. Three market opportunities can be identified.

The initial step is to provide somewhat that is small in supply. This necessitates modest

marketing aptitude because of obvious need.

The 2nd

way is applying an existing manufactured goods or service in a new-fangled or

advanced way. There are a number of ways to expose probable manufactured goods or

service improvement. The problem uncovering process enquires customers for their

suggestion. The perfect process has then to imagine an perfect version of the manufactured

goods or service as well as the expenditure sequence method enquire consumers to diagram

their stepladder in obtaining, using and disposing of manufactured goods. The last system

frequently direct to a very new product service.(Kotler,2009)

The company make available a frequent point-to-point service which allows avoidingcost of services for involving passengers, expenses of baggage transport and expenses

of transit assistance for passenger.

Passengers can book own ticket over the online. It can give 94% online bookingfacility.

It is possible for the Ryanair to open up lots of new destinations in EU market. In the EU, it is a vast occasion for Ryanair of low cost price strategy will enlarge

movement of employment seekers diagonally borders as well as helpful to tourism

sectors in economic growth promotion.

The United States and the European open sky agreement could be a great source togrow up their routes and passengers traffic inwards.

In non-European markets it plans how could expand of its operations in the nearfuture.


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Sometimes it offering free flights for attracting to the passengers.

Threats:

Threats related to such a state in which the company can earn small profits and it may reduce

its sell volume. (Kotler, 2009)

Ryanair is to face in direct competition with other transport in south as well as middleEuropean regions.

Fuel price will be differential in near future and decline air travel because of Middle-East War.

The company features highly noteworthy price as well as others pressure in anextremely aggressive environment.

Substitutes transportation (highly speedy rail system for example TGV and seatransport) can hamper on this industry.

Some EU states it will get not permission, for this reason it will be impossible toincrease their routes.

AC 4.3

Identify key emerging themes that are affecting your organization (these could be local,

national, or global)? Then apply your understanding and propose strategic marketing

responses to these emerging themes?

The company always affect by the national, local and global perspectives in business.

Local and National and Global Issues:

National and regional economies around the world are becoming increasingly integrated with

each other through trade in goods and services, transfer of technology, and production chains.

The interconnectedness of financial markets is also expanding rapidly. Such integration offers

greater opportunity for people to tap into more and larger markets around the world, and so

increase both their incomes and their ability to enjoy all that the world economy has to offer.


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The local perspective that affects the company is that customers choice, behaviour pattern of

consumer, local society perspectives to the company, channel of distribution in the local area

and so on (Siobhan, 2007). Tax competition is identified by means of instrumental variables

techniques. Despite significant competition effects between local neighbours, where tax rates

are strategic complements, jurisdictions are found to have some leeway in using the tax rate

as an instrument of their policy. In particular, large jurisdictions set higher tax rates in inter-

jurisdictional competition.

The national perspective that affects the company is the national legal issues that must be

maintained in the business policy and strategy. The company has a bad name for its

misconduct in different advertising affects. It may be one of the ways to coming in the news

in media. For example, it announced that it is using low carbon emission carriers which was

untrue and it refuse to serve the disable people by not providing at least one seat in each air

bus that was against the law. Human development issues are also related such as

communicable diseases, humanitarian emergencies, hunger and malnutrition and refugees

factors affect. These issues of any country must be considering before driven to the business

to that country as the customers natures are needed to identify. Ryanair used to charge for the

disable people to serve as an extra facility which was under criticism for denying human

rights (Hoffman, 2006).

Global economic issues such as International trade laws, financial stability, poverty and

inequality, debt relief, international migration, food security, intellectual property rights etc

are mostly effect the organization. To maintain the standard service and following the rules

and regulation all these factors affect the business (Botten, 1999). Peace and security Arms

proliferation, armed conflict, terrorism, removal of land mines, drug trafficking and other

crime, disarmament, genocide etc. also problematic for the company. Global governance

International law for air transport system multilateral treaties, conflict prevention, and reform

of the United Nations system, reform of international financial institutions, transnational

corruption, global compacts, and human rights also affects the international market.

Recession:

Recession is another issue that affect the business. In this time there should be need of job

cut, cost cutting effort like lessening cost for advertising and other subsidiary cost in the

board. Different routes that are not profitable may be suspended or minimizing the number of

flights for certain period of time (Siobhan, 2007). Ryanair should keep their concentration on


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ancillary service to generate profit all the time not only in recession. Ryanair propose a

diversity of ancillary, profit-generating services together with on the trip in airbus for

different commodities, beverage and food sales, reservation service to live or stay publicity

promotion and marketing, travel insurance, rent a car facility and rail and bus tickets. Ryanair

distributes car rentals, accommodation services and travel insurance through both its website

and its traditional telephone reservation offices. Management believes that providing these

services through the internet allows Ryanair to reduce costs on a per unit basis, while at

the same time increase sales. Ancillary revenues, excluding charters, greater than before by

68.1% (2002: 44%) and now accounts for 11.7% of total revenues compared to 9.4% in 2002

(Hoffman, 2006).

Ryanair should introduce car service to support the customer as a part of new product

development to support the customers to transport them in different parts of the city from the

airport.

Global warming:

Environment and Climate change issues such as deforestation, access to safe water, natural

resources loss of biodiversity, land degradation, sustainable energy, depletion of fisheries

etc. The global perspective is related to emission of carbon-di-oxide. Different environmental

group are creating pressure to the airline industry to less emission green house gas. Different

alternatives especially the fast train service are threat for their business. The company should

use the low emission carbon-dioxide carriers in future to free themselves from criticism by

environmental groups and make the people more reliable.

Strategic Marketing Response to Emerging Themes:

The strategy that has been taken to survive in the market should be following by creating a

new market for this business that has been analyzed earlier. Different research or statistics

can be used during the formulation of strategy on the issues especially on consumer

behaviour. We should follow the different aspects that are really a very good point and must

need to follow to set the strategy for the company. For example:

The company should not offer such issues that are against humanity. Human rights also affect

the international market. For example, Ryanair should not used to charge for the disable

people to serve as an extra facility which was under criticism for denying human rights.

Conclusion:


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In conclusion it can be stated that the strategy depends on the situation and on the basis of

that Ryanair should come from its negative way of attracting media. In the period of

recession its strategy to be stable in the business is also effective. Despite of all the facts it is

essential to look at the opponents service and try to serve better and improve in their strategy

for future continuity.

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