Session 9

Marketing Essentials: Unit 2 Unit code R/508/0486 Unit type: Core Unit level 4 Credit value 15 TQT 150 Unit Description Introduction This unit is designed to introduce you to the principles of marketing, enabling you to develop a basic marketing plan and to employ elements of the marketing mix to achieve results. Learning Outcomes: By the end of this unit you will be able to: 1 Explain the role of marketing and how it interrelates with other functional units of an organisation. 2 Compare ways in which organisations use elements of the marketing mix (7Ps) to achieve overall business objectives. 3 Develop and evaluate a basic marketing plan.

Lesson Content LO3 Develop and evaluate a basic marketing plan. The links between marketing plans, marketing objectives and marketing strategies. • An overview of the marketing planning process (analysis, planning, implementation and control) and marketing strategy. • Setting goals and objectives. • Situational analysis tools and techniques. • Group discussion – explain how strategy is implemented and monitored

Marketing Plans/Process SUMMARY AND TIME FRAME THE BUDGET S TURNING STRATEGY INTO ACTION MIX N AIMS AND OBJECTIVES A SITUATION ANALYSIS L PURPOSE AND MISSION P

Situational Analysis Current Product Analysis Boston Matrix Target Market- mass or niche/perceptions/segments Competitor Analysis –Porter Economic and Social PESTLE Strengths and Weaknesses SWOT Situational Analysis: Steve Jobs on Competitor Analysis ... http://www.youtube.com/watch?v=uQ-G99rh0p8

Strategy What can we do to meet our objectives? How can we measure success? Strategy: The big picture approach http://www.youtube.co... http://www.youtube.com/watch?v=4UBWlCtlFQ0 Boston Matrix/Ansoff analysis Helps examine products and markets. Product Portfolio Analysis - New Products/New Markets

Marketing Strategy Ansoff Marix, a model used to show how much risk is associated with growth strategies mainly: market penetration, market development, product development and diversification. Ansoff considered the main variables in a strategic marketing decision which he identified as:

Strategic Choice: Ansoff VARIABLES The market in which the firm is going to operate The product intended for sale ANSOFFS MATRIX: Shows how risk increases for each generic strategy Markets: Companies can stay in their existing markets They can develop new ones Products: Companies can continue to sell existing products

Ansoff Matrix and Strategic Choice And RISK MARKET PENETRATION in current market existing product Sell more PRODUCT DEVELOPMENT in existing markets Sell new products Higher sales of existing products in new markets MARKET DEVELOPMENT Sell new products in new markets DIVERSIFICATION

Porter’s Strategies Gaining Competitive Advantage and Strategic Choice A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices. Competitive Strategies Michael Porter suggested four "generic" business strategies to gain competitive advantage. The four strategies relate to the extent to which the scope of a businesses' activities are narrow and whether a business seeks to differentiate its products.

Porter: Strategic Choice

Setting Objectives Objectives set out what an organisation is trying to achieve They provide guidance about direction and actions needed to define and measure success The term, SMART is now in common usage within management systems, to help us set clear objectives “There is nothing so useless as doing efficiently that which should not be done at all.” Peter Drucker

USE ACTION WORDS for SMART TARGETS Establish Attend Submit Analyse Apply Change Create Determine Identify Perform Select Organise Deliver Complete Obtain Example: Improve communication in a department, is not a SMART objective. Hold regular Thursday Team Meetings beginning on October 26th, is SMART

And finally … A business plan has to be cohesive, incrementally logical (one step informs the next) co-ordinated, and possible to achieve within the resource allocation. Wish lists, best possible wind direction, ‘if all goes well’ situations should be avoided – be objective and realistic There has to be a time scale and a way of assessing progress against targets and measuring success (or failure!)

Prepare questions on the assignment And for Next week! Progress Assignment 1 Prepare questions on the assignment