Marketing Process

A marketing plan gives a purpose and direction to all the business’s activities. Everyone in the business needs to know the plan, so all departments are working towards achieving the goal. For this reason, it is referred to as an integrated marketing plan. The marketing plan needs to ‘mesh’ with the business’s operational plan, financial plan and human resources plan.

Market research is the process of systematically collecting, recording and analysing information concerning a specific marketing problem.

Market research attempts to identify and outline both marketing opportunities and problems, as well as evaluating the implementation of the marketing plan

Involves 3 steps :

1. Determining information needs - Must be relevant and results in the business achieving their objective
2. There are 2 Collecting data methods

primary (facts and figures collected from original sources) and secondary (is information that has already been collected by some other person or organisation

• Primary method collections - Surveys (face-to-face & online), Observation (loyalty programs) and Experimental (test marketing)
• Secondary method collections - Internal (customer feedback) and External (ABS)

3. Data analysis and interpretation - Is to tabulate the data (put in table) and analyse it using statistical formulas and then interpret the data correctly using a number of perspectives and people.

A target market is a group of present and potential customers to which a business intends to sell its product.

• The primary target market is the market segment at which most of the marketing resources are directed.
• A secondary target market is usually a smaller and less important market segment.

80/20 principle, according to which 80% of sales comes from 20% of a business’s customer base.

Activity - Find an example of a company employing one of the market approaches above.

Marketing strategies (click the link to learn more) are actions undertaken to achieve the business’s marketing objectives through the marketing mix

Marketing mix refers to the combination of the four elements of marketing, the four Ps

1. Product
2. Price
3. Promotion
4. Place

Activity

Create a marketing strategy for a new Thai restaurant using the 4 P's

Definition- Financial forecast is the business’s predictions about the future. It requires 2 steps.

1. Cost estimate - How much is the marketing plan expected to cost? Costs of the marketing plan can be divided into four major components: market research; product development; promotion, including advertising and packaging; and distribution. (think about the 4 P's)

2. Revenue estimate. How much revenue (sales) is the marketing plan expected to generate? Forecasting revenues will be based on two major components: how much consumers are expected to buy and for what price, and what sales staff predict they will sell. As time goes by, actual revenue can be compared with the forecast revenue data to determine the effectiveness of the marketing strategy.

Activity - Explain why marketing costs are easier to forecast than revenue

1. Sales analysis - is the comparing of actual sales with forecast sales to determine the effectiveness of the marketing strategy. See the example below.

2. Market share analysis - a business is able to evaluate its marketing strategies as compared with those of its competitors.

3. Marketing profitability analysis - is a method in which the business breaks down the total marketing costs into specific marketing activities.

Changes in the marketing mix - 4Ps modification

New product development - The product life cycle tells us that all products have a life span of somewhere between 5 to 10 years. Therefore, businesses must keep developing new products e.g. Sony

Product deletion - To maintain an effective product mix, a business will have to eliminate some lines of products. This is called product deletion.

2011

Q9 For an Australian importer, which of the following would be classified as an opportunity in a SWOT analysis?

(A) Highly trained staff

(B) Increased competition

(C) Strong brand recognition

(D) Appreciation of the Australian dollar

Q24

Sam and Jody want to start a hairdressing business in their local area. They are very concerned about the number of other hairdressers already in the area and they want to quickly establish market share.

(a) How can market research help Sam and Jody determine their target market? 2 marks

(b) Recommend ONE method of primary data collection and ONE method of secondary data collection that may be used by Sam and Jody to determine their target market.

(i) Primary data collection method 2 marks

(ii) Secondary data collection method 2 marks

(c) click here

Q18 In 2011 Star Car Pty Ltd’s main marketing objective was to take sales away from its competitors. In which country was this objective least effective?

(A) Country A

(B) Country B

(C) Country C

(D) Country D

Q19 For the period 2010 to 2011, which of the following statements is true?

(A) The size of the total car market in each country did not change.

(B) In Country A, both the total car market and Star Car’s market share increased.

(C) In Country B, both the total car market and Star Car’s market share did not change.

(D) In Country C, the total car market increased and Star Car’s market share decreased.

2013

Q7 Which of the following includes both an opportunity and a threat from a SWOT analysis?

(A) Low interest rates and high gearing

(B) Loyal employees and outdated technology

(C) Excellent management and strong competition

(D) Strong economic growth and increased tax rates

Q25 Robin and Pat are planning to establish a sporting goods business. They have decided to adopt a niche market approach to maximise profits.

(a) Outline ONE method that could be used by this business to collect relevant data about its target market. 2 marks

(b) click here

2014

Q6 A new business is experiencing a rapid increase in sales following a series of positive posts on social media. Which stages of the product life cycle is the business experiencing?

(A) Growth to maturity

(B) Growth to post maturity

(C) Establishment to growth

(D) Establishment to maturity

Q22 Bill and Jane have owned and operated a café in a busy restaurant area for many years. They specialise in fast healthy food that is popular with 18–30 year-olds. Recently a multinational franchise opened in the area in response to an expected increase in population.

(a) Outline TWO strengths of the café. 2 marks

(b) Outline TWO opportunities for the café. 2 marks

(c) Discuss ONE marketing strategy that Bill and Jane could use to respond to the threat posed by the opening of the multinational franchise in the area. 6 marks (more based on marketing strategies)

2015

Q3 Customers at a furniture store are asked to give their postcodes at the checkout. What is this an example of?

(A) Primary research to determine target market

(B) Secondary research to determine target market

(C) Primary research to determine product life cycle

(D) Secondary research to determine product life cycle

Q4 At which stage of the marketing process would a business examine its internal and external influences?

(A) When identifying target markets

(B) When conducting a situational analysis

(C) When establishing its marketing objectives

(D) When developing its marketing strategies

2016

Q3 While developing a new marketing plan a business discovers that many customers think its website is boring and confusing. At what stage in the marketing process should this have been identified?

(A) Identifying target markets

(B) Developing marketing strategies

(C) Conducting a situational analysis

(D) Establishing marketing objectives

Q22

(a) Why is this information an important part of the marketing process? 2 marks

2017

Q3 As a result of a SWOT analysis, a gym operator finds that a new larger gym is opening nearby. The operator then decides to extend its opening hours.

The aim of this strategy is to use

A. a strength to overcome a threat.

B. a strength to overcome a weakness.

C. an opportunity to overcome a threat.

D. an opportunity to overcome a weakness.

2018

Question 23 (10 marks)

A manufacturing business has conducted a situational analysis and determined the following:

• It has loyal customers who make repeat purchases.

• The size of the Australian market is shrinking.

• Some staff need further training to use the factory machinery.

• The owner has been invited to invest in similar factories in Europe.

(a) Identify ONE threat to this business. 1 mark

(b) Why could monitoring and controlling be an important part of the marketing process for this business? 3 marks

(c) How would the situational analysis change if the business decides to expand into Europe? 6 marks