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UNIT REVISION:UNIT REVISION:tips and guidance tips and guidance for the examfor the exam
Lecture 11Karen Knibbs
Marketing Practice – U14210
Learning objectives
2
By the end of this session students should be able to:-
Understand the format of the exam Reminder of key learning points
Revision tips! Identify sources of further help /
information for revision
Date: Wednesday 18th May 16:00-17:30 – be there early!
Exam format
Choose 2 essay questions from a choice of 5 questions
1 ½ hours Exam mark accounts for
60% of the final mark for the unit as a whole+ 40% from assessed
presentations
3
Get more marks by:• Write answer plans in notes first• Apply any relevant theory/models• Use as many examples from companies to illustrate your answer as much as possible
What we’ve covered this semester…
4
New Definition of Marketing?
“The strategic business function that creates value by stimulating, facilitating and fulfilling customer demand. It does this by building brands, nurturing innovation, developing relationships, creating good customer service and communicating benefits. By operating customer-centrically, marketing brings positive return on investment, satisfies shareholders and stakeholders from business and the community, and contributes to positive behavioural change and a sustainable business future.’” Charles (2007)
New elements of “definition” Creating value Building brands Nurturing innovation Developing relationships Good customer service Communicating benefits ROI and shareholder
value Stakeholders Sustainability
Broad Areas of Change & Developments
Marketing now not a management function Expansion of marketing into new areas – e.g. e-
commerce, social media, mobile apps, NFP, SME Increasing complexity of marketing roles Attitudes towards marketing Ethics, sustainability , consumerism , CSR and social
aspects• But some areas do not appear to be covered by the suggested
new definition: Services
Technology
Globalisation
MR definition summary
Market Research aims to describe and analyse markets (size, structure, growth etc)
Strictly speaking, Marketing Research is broader than Market Research
Marketing Research covers a much broader range of topics - customers, products, competitors, channels, suppliers etc
Current marketing situation or AUDIT
Should include:Market situationCompetitive situationMacro environment situation
• (PESTLE)Product situationPrice situationPromotion situationPlace (distribution) situation
Internal
External
Internal
&
External
Situation AuditExternal Factors
Macro Environment
Political
Economic
Social/Cultural
Technological
Legal
Environmental (CSR/Green/Ethics)
Micro Environment
Competitors
Suppliers
Distributors
Customers/Market Trends
Internal Factors
Position
Financial Situation
Market Position
Operations
Marketing Research
Products
Pricing
Selling and Distribution
Advertising and Sales Promotion
Capability
Organizational Structure
Management and Workforce
Capability for ChangeAsk yourself: what
other tools might a
company use other than
SWOT to analyse their
environment?
Balanced Scorecard
10 Kaplan & Norton, (1992)
Customer Orientation and CRM
Move to customer orientation has lead to a need to understand customer’s needs better
Improvements in technology have driven organisations’ ability to gain and hold more
information about consumers
Combined together, these have lead to the growth of Customer Relationship Management (CRM)
Role of CRM
To identify those customers that are most valuable to the organisation
To segment the organisation’s customers in the most useful way, e.g., by demographics, needs, value
To retain the customers that are most valuable to the organisation
How CRM is Carried Out
Relationships are based on (among other things) knowledge of the other party, in this case the customer
For organisation this means building and applying a picture of your customers
Generally this means using direct marketing
Also known as; Database marketing Direct and database marketing Data driven marketing
Downside of CRM
Building a database is not always worthwhile, if; The product is a once in a lifetime or very long term
purchase, e.g. house Where there is little loyalty shown to the product Where the unit sale is very low, e.g., Heinz at Home Where the cost of gathering data is too high
Can be difficult to get everyone to be customer centred
Not all customers want a relationship with organisationsSometimes assumptions are false, e.g., sometimes loyal customers get more expensive to serve as they get more
demanding
Global information
Business globalisation is increasing the demand for accurate local and regional information on the new markets to be entered.
Research needs to cover everything from cultural issues to consumer behaviour and competitive activity.
15
Pros and Cons of Using Technology
New Entrants
Substitutes
BuyersSuppliers
Entry & Substitution Barriers Reduced:•Less need for physical assets•More difficult to protect adv.•New entrants in many industries•Easier substitution
Rivalry Increased:•Reduced differentiation•Increased price competition•Wider geographic market•Lower variable costs hence more discounting
Supplier Power Reduced:•Raises bargaining power over suppliers•Wider information available•Internet procurement gives equal market access
Buyer Power Increased:•Wider information available•Reduces switching costs•Bargaining power shifts to end users•Powerful channels eliminated
Industry
Rivalry
Porter (2001)
Technology and Marketing
Technology has affected marketing in a number of ways. For example;
Products Increasing speed, acceptance and expectation
of innovation
Promotion Increasing media fragmentation Increased opportunities for information
capture and manipulation
Technology and Marketing Place
New distribution channels
PriceNew technology becomes
cheaper and more accessible, both B2C and B2B
Use of technology allows prices of various offerings to be decreased
Brand Management
A brand “consists of any name, design, style, words, or symbols, singly or in combination, that distinguish one product from another in the eyes of the customer.” (Brassington & Pettitt, 2006, P.301)
Needs to be something that can’t easily be copied by competitors
This serves as a sensory stimuli, a cue for the audience to attach to their experiences of products
Brassington & Pettitt (2006)
Brand Management Terms
Trade Mark A brand name symbol or logo protected by law for
the owners sole use Trade Marks Act 1994 allows registration of
smells, sounds, product shapes and packaging
Includes Coca-Cola bottle, Toblerone Directline insurance Advert
Brand Mark The elements of visual identity made up of design
and symbols, not words Also protectable by law E.g., Lloyds TSB black horse, Apple’s apple
Brassington & Pettitt (2006)
Branding Strategy
Brand extension Using an established brand to introduce a new
product E.g., Mars ice cream, easyHotel
Sub-brand A type of brand extension linking a new brand with
an existing brand E.g., Diet Coke
Parent brand A brand that produces a brand extension
Family brand A parent brand with a number of extensions
Kotler & Keller, (2006)
Branding Strategy
Brand extensions can be divided into two broad types;
(Product) line extension Use parent brand to brand a new product aimed at a
new market segment within the product category already served by parent brand, such as through different flavours, etc..,
(Product) category extension Parent brand is used to enter a different product
category than the one already served
Kotler & Keller (2006)
Honda Impossible Dream
Rationale for planning
to develop systematic, long-term thinkingto create an organised approachto develop specificity & consistencyto get agreement from colleagues & support
from non-marketers• common goals and mutual benefits
to identify sources of competitive advantage
The Strategic Marketing Planning ProcessProcess
Adapted from Morgan (1991), cited in Baines et al, p317
Problems with planning
Companies become obsessed with the processprocess or technique rather than the actual content and delivery of the plan!!
Unreliable or insufficient market research data can make plans flawed from beginning! New companies
• too busy? Small companies
• not important/ no skills/ restrictive? Mature companies
• Unnecessary / cumbersome? Fast changing markets
• not useful / responsive? However all organisations should plan!
Influences Shaping Organisational Buying Behaviour
Baines, Fill & Page, (2008)
Characteristics of organisational markets (from Principles)
FewerFewer buyers LargerLarger buyers CloserCloser supplier-
customer relationshipsrelationships
Geographically Geographically concentratedconcentrated buyers
DerivedDerived demand InelasticInelastic demand
FluctuatingFluctuating demand Professional Professional purchasing SeveralSeveral buying
influences DirectDirect purchasing ReciprocityReciprocity Leasing / Contractual
Agreements
Summary of Differences
Consumers often: Purchase goods and
services alone, which meet individual or family needs
Buy on impulse or switch supplier with minimal processes
Experience minor irritation if supply fails
Accept the stated price
BusinessesBusinesses often: Purchase goods and
services, as part of a team, to meet specific business needs
Use formalised, lengthy purchasing policies and processes
Find switching supplier difficult
Experience major problems if supply fails
Negotiate on price
Further reading suggestions:
All chapters from core texts as per unit handbook
Additional recommended reading as per unit handbook
Previous lectures (files on victory) Further reading suggestions as per
previous lectures. Self-test section of student website
accompanying the core textbook.GOOD LUCK and
Thank you!!