bsbmkg501 presentation 1

8/18/2019 BSBMKG501 Presentation 1

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BSBMKG501IDENTIFY AND EVALUATE MARKETING OPPORTUNITIES

PRESENTATION 1


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MARKETING

The purpose of marketing is to create, communicate and deliver value to

customers, and for that value to also benefit the business, and everyone interestedin the business.

• Marketing is a social science related to why humans behave the way do

• Work with or modify that behaviour to make a profit for our business

What makes people purchase goods? To answer this question you need to

undertake these steps:

Ask a questionDo background

researchConstruct ahypothesis

Test yourhypothesis by

doing anexperiment

Analyse yourdata and draw a

conclusion

Communicateyour results


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PRINCIPLES OF MARKETING

In general we could consider the following to be the principles of marketing:

• Clarify your business objectives

• Use innovation and creativity to know and understand:

• Your target group and your customers behaviour

• Your USP (unique selling proposition) unless you can do this you cannot

target your marketing properly and effectively - understand what makesyour business or product different or unique

• The business purpose

• The market needs and how they will access your product, company and

brand

• Segment your customers, where do they belong, what matters to them?

• Know your consumer buying behaviour – successful brands encourage the

participation of their customers


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WHAT IS VALUE?

Each person values something different. Don’t make assumptions about customers’

values. According to Kotler et. al., value is generally determined by a customer’s:

• Needs - a state of felt deprivation. When you are not having a need met, you

will try to either reduce the need, or look for something to fill that need

• Wants - the form taken by human needs as they are shaped, how people

choose to fill their needs

• Demands - human wants backed by buying power, the product or service the

customer thinks provides them the best possible value they can afford

Consumers make buying choices based on perceptions of the value products

deliver. Customers usually act on perceived value whether or not it is this accurate.

Customer value is the difference between the value the customer gains from

owning and using a product and the cost of obtaining the product. This perception

of value can be changed by a number of forces, including the media, marketing,

peer opinion, trends, price etc.


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CUSTOMER SATISFACTION

Depends on a product’s perceived performance in delivering value

relative to a buyer’s expectations:

• What do buyers expect?

• What was the perceived performance of the product?

•How did these two compare?

• If the performance is higher than the expectation, the customer is

satisfied - if not, they are dissatisfied

• Satisfied customers make repeat purchases, and tend to tell

others about their good experience. Therefore, it is important tomatch customer expectations with product performance


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EXCHANGE AND TRANSACTION

Exchange

The act of obtaining desired object or service from someone by offering somethingof value in return. Central to marketing, and requires a few important conditions:

• Two parties must be involved

• Each must have something of value to the other

• Each must want to deal with the other

• Each must be able to accept or reject the other’s offer

• They must be able to communicate with each other

Transaction

• The unit of measurement used in marketing

• It is a trade of units of value between two parties

• one party gives X to another party and gets Y in return

• Not always involve money – sometimes we exchange goods or services (barter)


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WHAT ARE MARKETS?• A market is the set of all

the actual and potentialbuyers of a product

• Members of a market

share common needs or

wants

• The size of a market will

depend on the number ofpeople who have a

particular need or want

and have the resources

and willingness to

exchange for them

• When creating a marketingcampaign you would look

at these five market areas

before product launch:

Potential market - all thepeople who could buy yourproduct

Available market - all thepeople who can afford

your product

Qualified available market -

those who can legally buyyour product

Target market- peopleyour business is trying toservice with your product

Penetrated marketcurrent customers


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S.W.O.T ANALYSIS

Strengths, weaknesses, opportunities and threats is a method for

considering the pros and cons of a situation:

• Internally we look at strengths and weaknesses (factors that

belong to the organisation)

• Externally examine opportunities and threats (factors that belong

to the situation and environment)

• This is a first step to developing a strategy for achieving specific

objectives and is useful for generating new ideas and

opportunities


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THE PRODUCT LIFE CYCLE

Product Development

A strategy for promoting company growth by offering modified or new products to

current market segments is developed

Introduction

New product is first distributed and made available for purchase

Growth

If successful, sales will start climbing quickly. Growth amongst competitors,

distribution, profits etc. begin to grow

Maturity

Sales growth slows or levels off

Decline

Sales decline. Company must identify declining product and decide whether it

should be maintained, harvested or dropped


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PRICING: INTERNAL FACTORS

Marketing objectives

• Price is often largely determined by the target market and

positioning for the product. The clearer a firm is about its

objectives, the easier it will be to set price

Marketing-mix strategy

• Pricing decisions must be coordinated with product design,

distribution and promotion decisions to form a consistent and

effective marketing program

Costs

• The company must cover all of its costs for producing, distributing

and selling the product, and also deliver a fair rate of return for its

effort and risk


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THE MARKETING MIX“…the set of controllable marketing variables the company blends to produce the

response it wants in the target market.” – Kotler et al (2007)

It refers to the various elements making up the practice of marketing in its totality. Often

referred to as the ‘Four P’s’:

• Product - Quality and features. Why do your customers need what you are selling?

What are the perceived benefits of your product? Product is a good service, idea,

place or person - whatever is for sale whatever we are selling. Considered to include

core - benefits the product offers the customer, actual which is the physical productand augmented the whole package including warranty, delivery and after sales

options for example

• Price - List price, discounts, allowances etc. what will make them part with their

money? What the customer is willing to exchange for the product that they want.

Consider price as well as all the costs, time, social, lifestyle for example

•

Place - Retailers, locations, warehousing where do your customers go to fulfil theirneeds? How available is the product to your customers? This relates to channels of

distribution as well as actual places the product is available from

• Promotion - Advertising, personal selling, sales promotions. All activities, actions

taken to let customers know about the product benefits and how this product fits

their needs


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THE MARKETING MIX

The extended marketing mix

In recent years, the marketingmix has been extended to

include people, process and

physical evidence. This is largely

as a result of the marketing of

services:

• People: important

particularly in the marketingof services

• Process: customers migrate

to other service providers

when the process is not

providing customer value

•

Physical evidence: entailsexamining every aspect that

customers use in their

perceptual field to assess

such a service

Targetmarket

intendedposition

Price

People

Product

Process

Place

Physicalevidence

Promotion


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ETHICS AND REGULATION IN MARKETING

Marketing imposes a great deal of influence on the social landscape. The

onus is on you to behave in a responsible way to use your power wisely.Your decision as a business owner or operating in business is to be

ethical and to do the right thing, always. You cannot use your position to

disadvantage any person or group of people.

Good ethical practice involves providing accurate and balanced

information, fair prices to encourage competition and reasonableinclusive behaviour.

There are a range of ethical and legal boundaries in the Australian

marketing landscapes. Ethical issues include:

Unfair pricingFinancial

responsibility andaccountability

Plannedobsolescence anddeceptivepractices

Consumerism Environmentalism

GlobalisationCorporate social

responsibility


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LAW AND REGULATION IN MARKETING

Marketing is governed by various legislation and peak body

regulations:

Australian ConsumerLaw 2011

Competition andConsumer Act 2010- commonwealth law

formerly TradePractices 1974

Fair Trading Acts Privacy laws

Protection ofIntellectualProperty,

Trademarks andCopyright

AustralianCompetition and

ConsumerCommission (ACCC)

AustralianCommunication and

Media Authority(ACMA) Do Not Call

Register

AustralianAdvertising

Standards Bureau(ASB)

ACMA Australian e-marketing Code of

Practice

Australian DirectMarketing

Association (ADMA)

Code of Practice

Australian MarketingInstitute (AMI) Code

of Conduct

AustralianAssociation of

National Advertisers(AANA) Code of

Ethics

Australian and NewZealand Standard

IndustrialClassification

Anti-DiscriminationAct

NationalClassification

Scheme

SPAM Act enforcedby ACMA


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LAW AND REGULATION IN MARKETING

Advertising media is regulated by internal and external bodies:

Internal regulators

•Australian Publishers

Bureau (APB)•Australian Association ofNational Advertisers (AANA)

•Advertising Federation ofAustralia (AFA)

•Federation of AustralianRadio Broadcasters (FARB)

•Commercial TelevisionIndustry Code of Practice

External regulators

•Australian Competition and

Consumer Commission(ACCC)

•Competition and ConsumerAct 2010 (replaces TradePractices Act 1974)

•Privacy Legislation

•Australian Communicationand Media Authority (ACMA)


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MARKETING OPPORTUNITIES

• The aim of marketing is to attract customers

• Good information is the foundation for good marketing

• In the real world, marketers collect and analyse data to

understand the requirements of their markets and find products to

match them

• Finding new markets can provide opportunities to improve sales

volume, growth, market share and profitability

• Before entering a new market, thorough research must be done to

balance potential advantages against risks in entering the new

market

• New markets can be similar to, or radically different from the

existing market the organisation currently operates in


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MARKETING OPPORTUNITIES

• Organisations seeking to penetrate new markets must first define the

market and research its characteristics

• They must then find new or existing products which match the

requirements of this market

• Alternatively, an organisation can start with a product and find new

markets for it

• Organisations sometimes create new opportunities by entering a

market with deliberate intentions of changing it.

• E.g. Apple introduced the iPad into the personal computer market with

the intention of changing the market

• An organisation will only make the decision to enter new markets if

the benefits outweigh the risk, a risk versus benefit analysis must be

part of any research into a new market


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INNOVATION

• Entrepreneurs have ideas and see opportunities which they

develop into businesses

• Anyone can adopt an entrepreneurial approach to their marketing

by developing their ideas and being alert for new opportunities

For Example:

• In 1938 Heublein purchased the U.S. rights to Smirnoff vodka

• At that time, sales were slow until they changed the product to

use whiskey corks

• In Kentucky, sales rocketed as the distributor started marketingSmirnoff as ‘white whiskey, no taste, no smell’


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INNOVATION

Entrepreneurial ideas come from creative thinking.

Generating entrepreneurial ideas can come from a range of activities:

• Brainstorming, mind mapping and other idea generation

techniques

•

Looking at an organisation’s competitors

‘What are they trying to achieve, and how can we do it better?’

• Customers, sales representatives, other personnel and

suppliers

These and other sources foster ideas that have the potential to be

turned into marketing opportunities.


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INNOVATION

Once an organisation has explored entrepreneurial, innovative ideas it must then

develop them into marketing opportunities. This requires them to:

• Identify the market and its requirements

• Specify the product if a new product is being developed

• Plan the marketing campaign

• Test the marketing plan

• Refine the marketing plan

• Implement the marketing plan

What is a marketing plan? A written plan to describe and direct the marketing

activities of the organisation. It is a road map that helps business decide where

they are, where they want to go and how they will get there. It helps clarify how to

appeal to your audience and what they need. It can include strategies, budgets and

goals.


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PRESENTATION SUMMARY

Now that you have completed this presentation you will know about:

• Identifying marketing opportunities

• Marketing terms and considerations to start:

• Value, customer satisfaction, exchange and transaction

• What are markets?

• The marketing mix

• Analyse information on market and business needs to identify marketing

opportunities

• Research potential new markets and assess opportunities to enter, shape or

influence the market in terms of likely contribution to the business

• Explore entrepreneurial, innovative approaches and creative ideas for business

application

• Develop ideas into potential marketing opportuniti

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