1003mkt introduction to marketing -...
TRANSCRIPT
1003MKT Introduction to Marketing Department of Marketing
Work Book
♦ Tutorial Modules to supplement learning
♦ Assignment guidelines
♦ Marketing plan group activities and assignment help
♦ Exam revision
TABLE OF CONTENTS
White section - In-class learning activities
Blue section - Assignment guidelines
Yellow section - Marketing Plan group activities
Pink section - Revision
WORKBOOK INSTRUCTIONS
This workbook has been designed to enhance your learning experience in Introduction to Marketing 1003MKT The Module pages should be completed prior to tutorials. During tutorials extended learning can occur from class discussion on work that has been completed. The Marketing Plan group activities should be completed on a weekly basis as a group. The revision section should only supplement the online resources available. Go to learning@gu / text book resources, there are lots of learning activities to help you revise the course content. Copyright © 2010 Dr Scott Weaven, Joan Carlini All rights reserved. No part of this publication may be reproduced in any form without the written permission by the authors.
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1003MKTWelcome
Welcome to Introduction to Marketing!! Marketing is everywhere, everyday and is the process that facilitates the exchange of products and services for the benefit of individuals, groups, organisations and society as a whole. Central to this course is the consumer's perspective, and while you are a student you are also an active consumer in the marketing process, so you will appreciate the approach we take in presenting this course. There are two key components to marketing. Firstly, it can be thought of as a philosophy, an attitude, a perspective. or a management orientation focusing on customer satisfaction. Secondly, it is an organisational function and a set of processes for creating, communicating and delivering value for customers and managing long term customer relationships so as to benefit the organisation and its stakeholders in dynamic environments. The study of marketing provides fascinating insight into how organisations create, distribute,
promote and price their goods and services to facilitate satisfying exchange relationships. This introductory course provides a basic insight into the key areas of marketing and is required to support further studies in the marketing discipline. This workbook will provide you. With regards to the text book, you have two options: 1. You can purchase a hard copy of the text which comes with a code for the electronic version, OR 2. You can purchase the electronic copy of the text only (the ebook). Look under the 'course content' tab. Please note that you are required to enrol and attend only 1 lecture. The tutorials start in week 2. I look forward to meeting you all in Week 1. Dr. Scott Weaven Primary Course Convenor
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1003MKTWeek Commencing
Activity Learning Objectives
29 Jul 10 Introduction to Course (Lecture): Marketing's role in business and society. We will discuss how marketing involves an exchange of value and detail the importance of marketing in CSR and business sustainability. Readings/Ref: Elliot et al (Chapter 1, "What constitutes a marketing plan" (Text chapter 2 and Appendices 1 and 2);
1, 2, 4
5 Aug 10 Marketing Environment and Market Research (Lecture): We will discuss internal and external forces that impact upon an marketer's ability to create, communicate, deliver and exchange goods and services. We will also be examining how market research enables marketers to make informed marketing decisions and develop marketing strategies. Readings/Ref: Elliot et al (Chapters 2 and 3);
1, 3
5 Aug 10 Course administration and introductions (Tutorial): Workshop 1: Workbook Module 1 Student group formation. Readings/Ref: S. Weaven (Module 1);
6, 7, 8, 9
12 Aug 10 Consumer Behaviour (Lecture): In this lecture we will describe and examine behavioural influences upon individuals' and households' consumption decisions. That is, we will be looking at things like, 'what product attributes appeal to customers?' and 'where would consumers like to purchase goods and services?' Readings/Ref: Elliot et al (Chpt 4);
1, 2, 3
12 Aug 10 Marketing Plan (Tutorial): Workshop 2: Workbook Module 2 Readings/Ref: S. Weaven (Module 2);
6, 7, 8, 9
19 Aug 10 Business Buying Behaviour (Lecture): Business to Business (B2B) markets comprise individuals or organisations that purchase products for resale, to produce other goods or to use in their daily operations. In this lecture we will consider the main issues impacting upon B2B consumption and analyse the decision processes involved in business buying behaviour. Readings/Ref: Elliot et al (Chapter 5);
1, 3
19 Aug 10 Marketing Plan (Tutorial): Workshop 3: Workbook Module 3 Readings/Ref: S. Weaven (Module 3);
6, 7, 8, 9
26 Aug 10 Markets, segmentation and positioning (Lecture): Understanding markets, segmentation analysis and the target marketing process. We will also discuss the concept of positioning and how this relates to marketing mix strategies. Readings/Ref: Elliot et al (Chapter 6);
1, 3, 5
26 Aug 10 Marketing Plan (Tutorial): Workshop 4: Workbook Module 4 Readings/Ref: S. Weaven (Module 4);
6, 7, 8, 9
2 Sep 10 Product decisions (Lecture): In this lecture we will examine different ways to view and analyse products, the importance of understanding the product life cycle, the new product development process and the product adoption process. We will also detail branding and packaging decisions in marketing. Readings/Ref: Elliot et al (Chapter 7);
1, 3, 5
2 Sep 10 Marketing Plan (Tutorial): Workshop 5: Workbook Module 5 Readings/Ref: S. Weaven (Module 5);
6, 7, 8, 9
Learning Activities
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1003MKTLearning Activities
9 Sep 10 Mid Semester Review (Lecture) 6, 7
9 Sep 10 This semester so far... (Tutorial) Readings/Ref: S. Weaven (Review of semester so far...);
7, 8, 9
16 Sep 10 Price Decisions (Lecture): In this lecture, we wil discuss the main elements involved in determining a suitable pricing strategy within the context of competitive forces in both B2B and B2C consumption situations. Readings/Ref: Elliot et al (Chapter 8);
2, 3, 5
16 Sep 10 Marketing Plan (Tutorial): Workshop 6: Workbook Module 6 Readings/Ref: S. Weaven (Module 6);
6, 7, 8, 9
23 Sep 10 Promotion Decisions (Lecture): Topics covered in this lecture include Integrated Marketing Communications and elements of the promotion mix including advertising, public relations, personal selling and sales promotions. Readings/Ref: Elliot et al (Chapter 9);
1, 2, 5
23 Sep 10 Marketing Plan (Tutorial): Workshop: Workbook Module 7 Readings/Ref: S. Weaven (Module 7);
6, 7, 8, 9
7 Oct 10 Place Decisions (Lecture): In this lecture we will discuss the roles and nature of distribution channels, logistics and major aspects of retailing. Readings/Ref: Elliot et al (Chapter 10);
1, 3, 5
7 Oct 10 Marketing Plan (Tutorial): Workshop: Workbook Module 8 Readings/Ref: S. Weaven (Module 8);
6, 7, 8, 9
14 Oct 10 Services Marketing and Electronic Marketing (Lecture): Services are an important and growing aspect of marketing exchange. Today, we will look at the major activities involved in the distribution of services (as oppossed to goods), other unique aspects of services and the major challenges involved in the marketing of services. In the second part of the lecture, we will discuss the characteristics of e-marketing, legal issues in electronic exchange and the role that e-marketing plays in overall marketing strategies. Readings/Ref: Elliot et al (Chapters 11 and 12);
1, 6
14 Oct 10 Workshop activity (Tutorial): Workbook: Module 9 Readings/Ref: S. Weaven (Module 9);
6, 7, 8, 9
21 Oct 10 International Marketing, Marketing Implementation (Lecture): Understanding globalisation and the factors impacting upon international marketing efforts. We will also have some discussion on marketing planning, evaluation and implementation and marketing's role on business sustainability. Readings/Ref: Elliot et al (Chapters 13 and 14);
2, 3, 4
28 Oct 10 Review of Course (Lecture) Readings/Ref: S. Weaven (Review of course in preparation for Final Exam);
1, 2, 3, 4, 5, 7
28 Oct 10 Assignment Hand-back in Tutorial (Tutorial)
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Module 1
The first thing that you have to do for your assignment is get into a group of 5 people. Important things to consider when forming a group include: are these people on campus the same days I am, will I be able to meet with them regularly and do they want the same grade as me?
Once you have selected your group members fill in the group contract over the next few pages and collect their contact details.
Getting started
Student Name Student Number Phone Email
Product:
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Group Marketing Plan Contract* Course code: ________________________
Group/Company/Product Name: ______________________________________________
Tutorial Time and Tutor: ___________________________________________________
Group members (Please print clearly)
___________________________________________ ID _______________
___________________________________________ ID _______________
___________________________________________ ID _______________
___________________________________________ ID ________________
___________________________________________ ID ______________
*. Once the contract is signed it is enforceable and viable, and no argument of discrepancy or unfairness will be heard thereafter unless extreme circumstances apply. This is a document that binds all participants to follow the guidelines below. Any failure to do so will result in a loss of marks. The group contract must be signed and returned to your tutor in week 5. A copy must also be attached to your final assignment.
Contract
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Section 1 Group Member Tasks/Assignments Project Manager This position requires good time management and leadership skills. The project manager will be chosen by group consensus. Each group member is expected to follow the direction of the project manager. The project manager’s overriding responsibility is to maintain order and continuity within the group to effectively finish the group project. As such, the project manager will be responsible for keeping the group on track thus helping to complete all aspects of the project in a timely and efficient manner. Where required the project manager may develop extra tasks and delegate extra authority to any members as decided through group consensus. If any discrepancy cannot be resolved through group consensus then that discrepancy is referred to the tutor in the first instance. When disputes between group members are felt to be infringing on the project in any way the project manager will mediate and have the final say on any ruling of such disputes. The project manager will show swift and just judgments unbiased in any way. The project manager will be the primary contact between the group and the tutor for the duration of the assignment. The project manager will participate in the collection of information, research and associated report writing during the duration of the assignment. If, before week 6, the person fails his or her group in such a way that causes extreme circumstances then, with the consensus of all other group members, a case may be brought to the tutor, who can direct the group to elect a new project manager. After week 6 no changes to the group formation are allowed. Project Manager Name_________________________________________ (Please print clearly) ID:___________________________________________ Date: ______________________
Contract
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Research Manager
This position requires good research, communication and interpersonal skills, as well as proficiency in the use of library databases and other resources. The research manager will be chosen by group consensus. The research manager is in charge of coordinating the research activities of the group. The research manager’s role is to lead, manage and improve team processes to maximise the use of available resources. This member of the group will be responsible for providing direction to other group members concerning research activities, collating the information gathered, identifying gaps and areas that require further research, and distributing all information to other group members. In the case of absence, the co-ordination manager will fulfill that position and all duties as assumed under that position. This member is subject to any tasks that the project manager deems as necessary. The research manager will participate in the collection of information, research and associated report writing during the duration of the assignment. If, before week 6, the person fails his or her group in such a way that causes extreme circumstances then, with the consensus of all other group members, a case may be brought to the tutor, who can direct the group to elect a new research manager. After week 6 no changes to the group formation are allowed. Research Manager Name_________________________________________ (Please print clearly) ID:___________________________________________ Date: ______________________
Contract
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Operations Manager
This position requires good English and computer skills. The operations manager will be chosen by group consensus. The operations manager is in charge of the overall technical aspects of the project. This includes, but is not limited to, the creation and responsibility for the technical composition of the final report in its entirety. This applies to formatting the report, checking for grammatical and spelling errors, and bringing the report up to standard. This member is also responsible for the printing and binding of the final report and, along with the rest of the group, for having all necessary paperwork completed and presentable. This member is also subject to any tasks that the project manager deems as necessary. The operations manager will participate in the collection of information, research and associated report writing during the duration of the assignment. If, before week 6, the person fails his or her group in such a way that causes extreme circumstances then, with the consensus of all other group members, a case may be brought to the tutor, who can direct the group to elect a new operations manager. After week 6 no changes to the group formation are allowed. Operations Manager Name_________________________________________ (Please print clearly) ID:___________________________________________ Date: ______________________
Contract
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Managerial Accountant
This position requires good numeric and writing skills. The managerial accountant will be chosen by group consensus. The managerial accountant is responsible for the managerial aspects of the assignment. This group member will keep a record of group attendance and tasks completed. As such, and in collaboration with the Operations manager, this member will maintain a file on the project (see the Evaluation Sheets). The managerial accountant will report directly to the project manager about the accounting of the group and group performance. At meetings this report will made known to all members to help guide the group’s progress. The report will also be attached to the final assignment as an appendix. The managerial accountant is subject to any projects or assignments that the project manager may deem necessary. The managerial accountant will participate in the collection of information, research and associated report writing during the duration of the assignment. If, before week 6, the person fails his or her group in such a way that causes extreme cir-cumstances then, with the consensus of all other group members, a case may be brought to the tutor, who can direct the group to elect a new managerial accountant. After week 6 no changes to the group formation are allowed. Managerial Accountant Name_________________________________________ (Please print clearly) ID:___________________________________________ Date: ______________________
Contract
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Co-ordination Manager
This position requires good communication and planning skills, as well as the ability to adapt and be flexible to meet the needs of the group. The coordination manager will be chosen by group consensus. The co-ordination manager is in charge of contact between all group members. This person is responsible for lending support to all the other positions and as such, helping to co-ordinate the project along with the project manager, to ensure it is completed on time and to the best of the group’s ability. The co-ordination manager is responsible for liaising with other group members, checking their progress, solving problems encountered, and fulfilling necessary tasks in support of the other positions. Early in the project, this member will lend support to the project manager in planning the assignment, then later to the research manager in helping to organise research activities. Later in the project, the co-ordination manager will assist the operations manager in compiling the final report. This member of the group will also assist the managerial accountant from time-to-time as required. In the absence of any other members, the co-ordination manager will fulfill those positions and all duties as assumed under those positions. This member is also subject to any tasks that the group leader (project manager) deems as necessary. The co-ordination manager will participate in the collection of information, research and associated report writing during the duration of the assignment. If, before week 6, the person fails his or her group in such a way that causes extreme circumstances then, with the consensus of all other group members, a case may be brought to the tutor, who can direct the group to elect a new co-ordination manager. After week 6 no changes to the group formation are allowed. Co-ordination Manager Name_________________________________________ (Please print clearly) ID:___________________________________________ Date: ______________________
Contract
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Section 2 Allocation of Grades Upon completion of the project each group member will be allocated an equal grade as deter-mined by the report marker and then points deleted based upon participation and perform-ance. Member(s) who do not participate fully will be subject to penalties. This is designed to get the maximum collaborative effort of all group members. If a member is penalised, he or she will be notified and given the opportunity to defend himself or herself in front of all the group members, tutor and course convenor. In the final report, a copy of this contract and the ‘Declaration Regarding Group Marketing Plan’ must be completed and attached as an appendix. The Declaration includes a manage-rial report (attendance evaluation) and an operational report (quality evaluation), which must be completed. Records of group meeting minutes, emails and other correspondence should also be retained by group members. The course convenor has ultimate discretion on the allo-cation of any penalties incurred. Be aware that the poor performance of 1 group member is no excuse for the rest of the group not to complete the project. It is expected that all mem-bers will work together as a team and support one another. Where problems cannot be reme-died within the group, please approach your tutor in the first instance as early as possible.
Meetings It is expected that there will be a minimum of 5 regular meetings; however it is likely more meetings will be required. All group members are also expected to attend tutorials, in which guidance for the project will be provided and group work performed. It is possible that not every member will be able to attend every meeting or tutorial, and excused absences will be taken into consideration. An excused absence is one that falls in a category that is caused by an unanticipated external force and concerns circumstances that are out of the member’s hands. This includes, but is not limited to, a doctor’s appointment covered by a medical cer-tificate, the funeral of a family member or close friend, a car accident. A record of this atten-dance is to be kept by the Managerial accountant.
Assignments/Projects Throughout the project each member has to complete given tasks. These tasks are required to assist in completion of the project in a timely manner and to assist the group’s progress. A record of this task completion is to be kept by the Managerial accountant.
Quality of the assignments/projects completed Quality of the written project is important to a group’s success. While tasks may be completed on time this does not guarantee quality. Based upon the Operations manager’s judgment and report, level of quality should be assessed based upon the following criteria: Consistency in the formatting used, grammatical errors, spelling errors, and structure of formal report. I have read, understand and accept all the above conditions. Signed:
Project Manager
Research Manager
Operations Manager
Managerial Account
Co-ordination Manager
Date: ______________________
Contract
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Group declaration declaration re group marketing plan We, the undersigned, hereby declare that the attached Group Marketing Plan has been completed in strict accordance with the instructions provided. Further, we jointly and severally certify that each member of the group has consistently and actively participated in the deliberations of the group and has contributed equally to the completion of the project. We agree that the attached evaluation sheets are a proper and true measure of the input of all group members and that no pressure has been applied to coerce any member of the group to sign this declaration or the evaluations. SIGNED:
Project Manager ____________________________________
Research Manager_____________________________________
Operations Manager____________________________________
Managerial Accountant___________________________________
Co-ordination Manager___________________________________
DATE: _________________
A false declaration will be grounds for all students in the group to be given zero marks. If you are unable to sign this Declaration for any reason, please contact the Convenor at once. This document must be attached to your assignment as an appendix, along with a copy of the group contract, or your assignment will not be marked.
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Attendance Evaluation Sheet This Attendance Evaluation sheet must be maintained by the Managerial Accountant
Entries must be initialed by members other than the member being evaluated. No group member can initial his or her own evaluation. All entries not initialed properly shall be deemed a meeting/task not completed for all concerned.
Position: Project Manager Meeting Attendance Record
Meeting Date
Date called
Attended (Yes/No)
If not, reason for non attendance
Reason accepted (Yes/No)
Group Member Initials
Totals
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Position: Research Manager Meeting Attendance Record
Meeting Date
Date called
Attended (Yes/No) If not, reason for non attendance
Reason accepted (Yes/No)
Group Member Initials
Totals
Position: Operations Manager Meeting Attendance Record
Meeting Date
Date called
Attended (Yes/No) If not, reason for non attendance
Reason accepted (Yes/No)
Group Member Initials
Totals
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Position: Managerial Accountant Meeting Attendance Record
Meeting Date
Date called
Attended (Yes/No) If not, reason for non attendance
Reason accepted (Yes/No)
Group Member Initials
Totals
Position: Coordination Manager Meeting Attendance Record
Meeting Date
Date called
Attended (Yes/No) If not, reason for non attendance
Reason accepted (Yes/No)
Group Member Initials
Totals
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Quality Evaluation Sheet This Quality Evaluation sheet must be maintained by the Operations Manager Other group members must initial all entries. No group member can initial his or her own evaluation. All entries not initialed properly shall be deemed a meeting/task not completed.
Position: Project Manager Task performance Record
Task
Com-pleted
(Yes/No) If not: reason for non
completion
Reason Accepted (Yes/No)
Spelling mistakes (Yes/No)
Grammar mistakes (Yes/No)
Formatting Mistakes (Yes/No)
Group Member Initials
Totals
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Position: Research Manager Task Performance Record
Position: Operations Manager Task Performance Record
Task
Com-pleted
(Yes/No) If not: reason for non
completion
Reason Accepted (Yes/No)
Spelling mistakes (Yes/No)
Grammar mistakes (Yes/No)
Formatting Mistakes (Yes/No)
Group Member Initials
Totals
Task
Com-pleted
(Yes/No) If not: reason for non
completion
Reason Accepted (Yes/No)
Spelling mistakes (Yes/No)
Grammar mistakes (Yes/No)
Formatting Mistakes (Yes/No)
Group Member Initials
Totals
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Position: Managerial Accountant Task Performance Record
Position: Coordination Manager Task Performance Record
Task
Com-pleted
(Yes/No) If not: reason for non
completion
Reason Accepted (Yes/No)
Spelling mistakes (Yes/No)
Grammar mistakes (Yes/No)
Formatting Mistakes (Yes/No)
Group Member Initials
Totals
Task
Com-pleted
(Yes/No) If not: reason for non
completion
Reason Accepted (Yes/No)
Spelling mistakes (Yes/No)
Grammar mistakes (Yes/No)
Formatting Mistakes (Yes/No)
Group Member Initials
Totals
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Module 2Situation Analysis
Battle in the Book Market - Readings Books Introduction The book retailing business (like the music retailing business) in many countries is under threat from “e-tailers” like amazon.com. Furthermore single store book retailers in many countries also find themselves under assault from national or international retailers who have major buying power and can pass these savings on to end customers. A third trend is the fact that in some countries fewer books are being bought by a time poor and more electronically driven public. Borders is an example of a large and powerful chain that has been expanding internationally, and has shown a particular interest in ‘book buying nations’ like Australia and New Zealand. The Borders brand is a giant among book retailers with over 30,000 staff globally and around 1200 stores in the US, UK and in Pacific Rim countries. It is a Fortune 500 company with annual sales of US$4billion. Aside from their buying power, Borders has a reputation for successful and somewhat seductive marketing. Customers tend to like spending time in their retail environments. Aside from books it also offers music, movies and other entertainment items, as well as a loyalty rewards program. It has a major online presence as well, and a strategic alliance with amazon.com. When a successful major international bookstore chain like Borders opened a shop in close proximity to a smaller operator like Readings Bookshop in suburban Melbourne, it is tittle wonder that the owner of Readings Bookshop was concerned for his business. Established in 1969, Readings has only five suburban stores and is a largely unknown book retailing brand outside the Melbourne market. Like Borders it has an online presence that allows it to reach a
wider market than its immediate catchment area, and it also offers books, music and films. Two of its stores have cafes attached. The owner of Readings is very involved in his business, but wondered how he could effectively compete with this Borders threat. How to Compete? How do small and medium sized retailers compete against much larger retailers, including those that are an international brand? This is a question that cuts across many retailing product categories. Music retailing is a closely allied example to book retailing, but the trend whereby large, often multinational retailers arrive to potentially threaten small owner operated domestic brands has been mirrored in everything from coffee to fast food. The answer as to how smaller players can effectively compete really lies in them having some competitive strengths that they alone own, an awareness of these strengths, and an ability to leverage them for competitive advantage. Small owner operated coffee shops for instance generally really on the quality of their coffee, their ambience, and their personal relationships with customers as competitive strengths. These are attributes on which larger competitors like Starbucks and Gloria Jeans cannot necessarily compete. These larger players’ strengths instead are based on attributes such as their product range, seating capacity, higher profile locations, turnover, and the power of their brand names. The Basis of Readings Competitive Strength Readings as a relatively small book and music retailer appears to have some competitive strengths. As with coffee shops, the personal relationships a bookstore has with its regular customers may be important. This is relatively difficult for a new entrant like Borders to compete on since it has no established relationships, and the typical
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size of their stores and the chain store principles on which they operate is not particularly conducive to the development of such close relationships. Having a good working relationship with its staff is also a competitive strength for Readings. Smaller retailers tend to employ less people, so their staff are more likely to be known by managers and may in turn feel more committed to the business. The latter is particularly the case if the managerial style is open and democratic. The General Manager of Readings met with each member of the staff to ask for their commitment when the threat from Borders became apparent. Clearly some internal marketing is being practiced within Readings Bookstore. Larger retailers by comparison are more likely to have a more hierarchical, command driven structure, and staff commitment to the success of the business may reflect this greater power distance (i.e. it may be less apparent). The flatter managerial structure of Readings is demonstrated by the fact that everyone, including the owner of the business serves the customers and stocks the shelves. This fact would not be lost on the staff, as might the fact that the security of their jobs is tied up with the success of the business (and its ability to meet the threat posed by new much larger competitors like Borders). The fact that the managers do stock shelves and serve customers provides an additional strength for Readings since it keeps the decision-makers in the business abreast of customer desires and trends (“keeping their fingers on the pulse”). This in turn can help inform the Readings product stocking and pricing policies, as well as how they promote their brand. Basic marketing philosophy requires that marketing decision making not occur in a vacuum - it should be informed by consumers needs and wants. Decision-making should not however be exclusively reflective of what consumers say they currently want, and this is as true in the book trade as in any other consumer category.
Sony consumer electronics for instance would not be what they are today if they had merely produced and marketed what consumers said they wanted at a particular point in time. Instead, looking into the future and trying to anticipate what consumers would like in their lives, including what they would like to read and to listen to, is equally, if not more important. In this regard, larger organisations do not have a monopoly on being able to anticipate future needs and wants, though they do potentially have more resources to devote to identifying what these needs and wants may be. Borders as an international retailer can draw on its knowledge of what is happening in its key home market, and other markets like the UK, where book tastes may be broadly similar to Australian book tastes. If it can leverage this knowledge it can be an innovator in the marketplace. However, the “up close and personal” style of Readings management does mean that they have a hands on understanding of trends in the Australian, and more specifically the Melbourne market. A passion for the product and empathy for the customer are further potential sources of competitive strength for Readings in its battle with Borders. In terms of the first point the owner of the business has a lot of emotional investment in the business and “book people” are often passionate about books. This is likely to be communicated to the staff who themselves may be “book people”, rather than simply sales people. This may of course also be true of the staff recruited to work at Borders. In terms of the second point, empathy for customers, this really is an individual attitude (though it may also be an organisational culture). Staff may in part be recruited on the basis of their ability to empathise with customers. Rapid understanding of what a customer is looking for when they walk into or are browsing through the shelves of a Readings store is an advantage. It offers the possibility of more closely meeting the needs of customers so they purchase a product
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with which they are highly satisfied. It also offers the allied possibilities of cross selling, up selling, and customers who return to buy Readings products in the future, since the customer service experience has been a positive one for them. These are basic principles of relationship marketing. Further potential strengths that Readings may possess in its battle with Borders are its established reputation and usage of events marketing. A good reputation as a long established independent bookstore helps differentiate its offer from the competition (which may bring substantial kudos in a book buying town such as Melbourne). It also appears to use events marketing effectively through the hosting of book launches and literary events featuring well-known people throughout the year. This assists with raising awareness and reinforces the brand’s quality reputation. Readings also markets itself as a promoter of Australian literature, and indirectly of Australian culture. This also helps differentiate it in the marketplace, as does the fact that it was awarded Australian Independent Bookseller of the Year in 1998 and 2001, giving it further brand credibility. These are likely to be attributes on which Borders as a chain bookstore (for all its buying power and large store sizes), may not be able to as effectively compete. The Future So where does this leave Borders? The strengths of small retailers may be matched or counterbalanced by the strengths of larger players. It is a retail reality that small niche operators may not have a very long lifespan if they offer a niche product to a small customer base. If they do survive over the longer term there may be very limited growth prospects. It is also apparent that in some retail product categories large sized retailers (and the ‘super sized’ retailers like Bunnings in the hardware market) are getting larger through their ability to take over smaller players, or simply drive them out of the market, often through aggressive pricing strategies.
Luckily for Readings this is not quite the situation that they face. They are not a small niche player with a small customer base. They have five stores, and have built up a large and loyal customer base over more than thirty years. They offer more than books, they have an online presence, and as demonstrated above other strengths that may give them some unique competitive advantages. They have achieved a critical size in the market that really makes them a medium sized player, even though in global terms they are a minnow in comparison to Borders. For Borders, being larger is not necessarily better. Larger organisations can be slower moving, and less able to adapt to the changing needs of the marketplace rapidly. They may be less in tune with the needs and wants of the marketplace. As a late entrant there are certainly no ‘first mover’ advantages that they can leverage. The long established players like Readings have high awareness, and may command substantial brand loyalty among Melbourne book consumers. Borders management needs to carve out a place in the market for itself. It requires critical mass to do so, and will aggressively promote itself and chase sales. Readings management appears to be more than aware of this threat, and is adopting a proactive stance to meet the challenges posed by the new market entrant. Retailing can be a battlefield, and the retailing of books and music is a prime example of this.
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Political
Economic
Socio-Cultural
Technological
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Strengths
Weaknesses
Opportunities
Threats
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APPLE’S MIGHT
OVERVIEW Apple continues to amaze. They have just released their ‘greenest’ MacBook ever, and their iPhone has re-written phone rules (even if it doesn’t have all the power of others on the market yet).
QUESTIONS 1. Briefly define ‘the marketing environment’.
2. 2. What is meant by ‘technological forces’ within the marketing environment?
3. Technology aids communication. It also has an impact on the market environment.
List the seven major impacts on the marketing environment, as outlined in Chapter 3
of your text.
4. Marketing planning is especially important for new businesses. Explain what
marketing planning is?
5. Marketing has a definite place in our local economy, but marketing is also important
within the global economy, especially as communication is so vital. State the eight
reasons why marketing is important globally, as outlined in your text.
Module 31-minute paper
© Marketing at Work John Wiley & Sons Australia, Ltd
In groups in class you will be asked to answer one of the questions below. One member of the group will then present the groups answer to class in 1-minute.
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Your tutor will allocate one of the products below to your group. Answer the following questions.
1. V8 muscle car 2. Nightclub 3. Appliance repairs 4. Meat pie
Sales for your product have been in decline in recent years, but a situation analysis has identified an opportunity in the market for the product to be rejuvenated. Your objective is to increase sales of your product by 10% in the next 12 months. Your task is to identify:
1. 2 segments that could potentially buy your product (describe their characteristics
using the segmentation variables)
2. Pick one target market and justify why it would make a good target
3. Develop a positioning strategy (most products probably need to be repositioned. Be
sure to use the bases for positioning)
4. Think about how the product, price, promotion and distribution may need to be
changed for the target market identified, in order to achieve the objective.
Module 4Group work
What are the five stages of the buying decision process? 1. ___________________ recognition
2. Information __________________
3. ____________________ of alternatives
4. ____________________________
5. __________-______________ evaluation
1003MKT
26
In groups answer the questions below. What do these products have in common? 1. What type of product is this? (purple cow/new
product, modified product, line extension)
2. What stage in the product life cycle is this
product?
3. Is this a strong brand?
4. What is the product’s classification?
5. What purpose does this package serve?
Module 5Product decisions
Images: www.cabel.name/2007/06/new-product-update.html
1003MKT
27
Prestige Pricing Random Discounting Captive Pricing Bait Pricing Periodic Discounting Negotiated Pricing
Match the pricing tactic to the description, then give an example.
Module 6Price
Offering a low entry price for a basic product to attract consumer, then charging more for desirable or necessary additional parts or functions. Temporarily reducing prices on a predictable, regular or periodic basis. Setting prices high to convey an image of prestige, quality and exclusivity. Temporarily reducing prices in a pattern which is difficult for consumers to predict. Negotiation of the selling price between buyer and seller. Establishing an artificially low price for one item in a product line to attract potential buyers, then trying to sell them a higher-priced item in the product line.
____________ ____________ ____________ ____________ ____________ ____________
Price tactic Description Example
1003MKT
28
Below are the four main elements of a promotion mix. Beside each element write down
the tools (forms) that can be utilised.
Module 7Promotion
Promotional Element Tools
Advertising TV
Personal Selling Identify the steps for personal
Sales Promotion Free samples
Public Relations Media conference
1003MKT
29
You are a marketing consultant and have been employed by a business woman, Judy,
who wants to open a small retail store that specialises in high-quality, high-priced
children’s clothing.
1. Who would be in the target market for Judy’s store?
2. What type of competitors should she be concerned about in this competitive retail
environment?
3. Location of retail outlets is an issue in strategic planning. What initial course of
action would you recommend to Judy when she considers location for her store?
4. Are there any other distribution recommendations you could make for Judy?
Module 8Place decisions
1003MKT
30
There are four elements which distinguish the services marketing mix. Discuss. 1. Intangibility 2. Inseparability 3. Heterogeneity 4. Perishability In groups, answer the questions below. eTAIL SHOPPING ALL ABOUT BRANDING OVERVIEW Branding is important in traditional high streets, but even more so in an online world.
QUESTIONS 1. There are many types of retail outlets. List them, giving an example of each different
type.
2. There are many strategic decisions within retailing. What are these?
3. Briefly explain the ‘wheel of retailing’.
4. Non-store retailing has grown worldwide. List some of the aspects associated with
this.
5. The article defines the many new magazines that now exist for this market.
Advertising and publicity of new product ranges and a new breed of magazine has
lead to an online presence. How has promotion on the Internet changed retailing,
especially with regard to this market? In your opinion, is this good or bad? (Hint –
see Chapter 14).
6. What is IMC and why is it important for a magazine to maintain a strong online
presence?
Module 9 Services and emarketing
Assignment
1
Assignment Guidlines
GU COVER PAGE This cover page is available on the subject web site. It must be completed with all the necessary details of each group member and the plagiarism declaration signed. ASSIGNMENT MARKING CRITERIA SHEET The criteria sheet is available on the subject web site and must be completed and attached to your assignment. GROUP COVER PAGE
EXECUTIVE SUMMARY (also refer to text p. 502) 1 page only – place before the table of
contents Provides a summary of the total plan NOT included in the word count Written AFTER the plan is completed TABLE OF CONTENTS One page; outlines the content sections of the plan. INTRODUCTION AND SITUATION ANALYSIS (also refer to text pages 502-507) The introduction should give a brief background to the product or company, past strategies (if known) and should basically set the scene for the company’s current situation. Situation Analysis The situation analysis should include those internal and external factors which impact upon the company. For example: Internal
• Current data on brand performance (e.g. Sales, earnings, market share etc)
• Positioning (positioning maps can be used)
• Promotional strategies and communication themes
• Distribution External Micro-Environment
• Market Analysis (Market trends & characteristics, industry attractiveness etc)
• Customer Analysis (Customer needs, buying behaviour etc)
• Competitive Analysis (eg. size of competitors, direct/indirect, market share if available, marketing strategies etc)
Macro-Environment • Political forces/ Legal and
regulatory influences (e.g. Federal laws, Trade Practices Act, Regulating bodies)
• Economic trends • Social/cultural trends (e.g.
Shifting consumer demands, demographic trends)
• Technological changes A SWOT (also refer to text p. 507) analysis should be used to assist in the preparation of this section and to assess the company’s situation. It represents the outcome of the situation analysis. Any assumptions made should be clearly stated. Thorough research will lead to the identification of the SWOT. Note the internal and external factors identified should indicate opportunities or problems that can be capitalised on and that you will address with this plan. GOALS AND OBJECTIVES (also refer to text pages 507-508) Objectives should be stated in terms of
what the firm should aim to achieve.
Assignment
2
They should be consistent with organisational goals, including business-unit and corporate strategies.
Financial and marketing objectives should be realistic, achievable, measurable (quantitatively), and include a time frame.
TARGET MARKET(S) AND SEGMENTATION (also refer to text page 508) The product, whether a good or service,
should be seen as a potential need-satisfying item from the consumer’s perspective
The main benefit is to be identified The segment of the population most likely to
value this benefit must be hypothesised Then use research to describe the segment
(s) at which the marketing plan is aimed. Provide estimates of market size (where
possible) and foreseeable competition Market segments must meet the following criteria: Homogenous within a segment Heterogeneous between segments Substantial Operational Requirements of effective segmentation: Measurability, Accessibility Sustainability, Actionability Consumer Market Segmentation 1. Geographic segmentation 2. Demographic segmentation 3. Psychographic segmentation 4. Behavioural segmentation Business Market Segmentation 1. Geographic location 2. Type of organisation 3. Customer size 4. Product use Once the segments have been identified and evaluated, a target market for the plan should be selected. Use the necessary criteria to justify your selection. A positioning strategy
must then be determined. This is where you start to make recommendations for the organisation/ brand/ product. The introduction and situation analysis is a snapshot of ‘how it is’. In this section you start to make recommendations for ‘how it should be’. MARKETING MIX STRATEGY (also refer to text pages 508-510). Identify and analyse several possible strategic choices or options. Areas to consider include strategies for: Product: What is the product? How will it be positioned? How many product lines? Warranties Physical goods or services? Perishability Place: How will the product be distributed
(direct or indirect)? Direct: producer deals directly with
consumer Indirect: producer uses
intermediaries to distribute product Who will be the intermediaries and
who will manage them? What type of channel network will
be used? Price: What price should be set? Determined by market, product
quality, product position Pricing approach and strategy Consider demand elasticity of the
product Promotion: What type of communication/
promotion activity should be used? Communication themes Push vs. pull strategy? Personal selling, advertising and
publicity, sales promotion, guerilla marketing, viral etc
Consider what stage the product is in the product life cycle
Assignment
3
Note that for a service, you must also consider people, process and physical evidence. The marketing mix should be designed with the target market in mind and should achieve the objectives set. It must elaborate and reinforce the positioning or desired image specified. BUDGET (also refer to text page 510 and review learning@griffith under Resources/Research Resources/Budget Resources) This section should detail all expenses that will be incurred in implementing the selected strategy. Outline general expenditure only, e.g. specific costs for advertisements are NOT expected, though research will be necessary to determine general costs. A profit and loss statement is not expected in this section. The budget will be determined based on the resources of the organisation selected – in other words, it will be determined by the students and will be different for every group. IMPLEMENTATION/ ACTION PLAN/ SCHEDULE (also refer to text page 511) This section will detail the exact methods which will be used to implement the selected strategy, ranging from the product name or brand to its price, place of distribution, packaging option and design. Consider what will be done, when, and by who. Timeline for implementation (see p. 487 for a simple example) Must relate to objectives, strategies, target market etc THE WHOLE MARKETING PLAN MUST HAVE A LOGICAL FLOW
EVALUATION AND CONTROL PROCEDURES (also refer to text page 511) The purpose of having control procedures is to identify whether planned activities are being accomplished successfully, such as: Projected or anticipated market share Level of customer awareness of a new product How will you measure whether or not you are achieving your objectives? If you are not, what contingency plans will you have in place? This section of the marketing plan should reflect company and project objectives. Performance should be measured in relation to stated objectives, and a predetermining schedule of such assessment should be included in the plan. CONCLUSIONS AND RECOMMENDATIONS (also refer to text page 512). A brief conclusion should be provided to wrap up the plan. You may also like to include any further recommendations, perhaps for the medium to long-term. REFERENCE LIST A number of resources are available on the subject web site to assist you with referencing. You may use any style you like. A minimum of 10 journal article references is expected. Please Note: DO NOT INCLUDE APPENDICES AND OTHER ATTACHMENTS
Assignment
4
STYLE FACTORS: • The plan should be approx. 2,500 words (+/- 10%) • Figures and tables should be used where appropriate, and are not included in the word
count, nor are quotes and references. • NO APPENDICES should be attached to the report. • A reference list should be included after the main content of the plan, and prior to the
appendices. You may choose the referencing style you wish to use, but be consistent throughout the plan. No absolute number of references, but I would assume that plans should incorporate at least 10 journal references.
• Approx. word count per section (this is a general estimate only, it will depend on the number of tables, figures & appendices, and may differ for each assignment):
Introduction/Situation Analysis 300 words Segmentation/ Target Market/ Positioning 500 words Objectives 200 words Marketing Strategies 600 words + Budget (table) Implementation/Action Plans 400 words (+ table) Evaluation and Control Procedures 300 words Conclusion/ Future recommendations 200 words TOTAL 2 500 words
• All assignments must include a completed coversheet and criteria sheet which will be
available on the Learning@Griffith site for the course under the ‘Assessment Tab’. • Assignments should be either stapled in the top left-hand corner, or bound. No folders
please.
NOTE: The assignment is due Friday week 10
Gold Coast students Submit assignment in Department of Marketing foyer outside of room 2.12 G01 (Opposite Assignment Boxes) between 12-2 pm only. Submission of assignments after this time to Off-Campus and Assignment Handling Service (OC&AHS) at the Library. Nathan Students: Submit assignment to Off-Campus and Assignment Handling Service (OC&AHS) at the Library no later than 2pm. Assessment Summary
Item Assessment Task
Length Weighting Total Marks
Relevant Learning Outcomes
Due Day and Time
1. Mid semester Exam *Amber Risk Asses. Strategy
1.5 hours 25% 75 2-7 Week 7 (times and venue to be advised)
2. Group Marketing plan
2500 words
35% 100 2-8 Week 10
3. Final exam 2 hour 40% 40 1-5 Exam period
Assignment
5
1003MKT INDIVIDUAL MARKETING PLAN ASSIGNMENT TOPICS Students are required to develop a marketing plan for a single product. Please select one product from the two listed below. You will be asked about your selection at the tutorial in week 2/3. Note: you may decide to develop a plan for a specific brand/ organisation or the product category (selective vs primary demand) e.g. Confectionery or Soap. It is up to you. The topics are as follows: 1. Lifesavers 2. Sunlight Soap HINT: What do all of these products have in common? (In desperate need of REPOSITIONING). Remember that Positioning is all about how a customer perceives a product or service in the context of competition. Please refer to text pages 190-199 of the text. NOTE: Please be sure to maintain an Australian focus in your plan.
Assignment
6
1003
MK
T In
trod
uctio
n to
Mar
ketin
g
G
roup
Mar
ketin
g Pl
an M
arki
ng C
riter
ia
Exec
utive
sum
mar
y
5
mar
ks
Exce
llent
summ
ary a
s it a
d-dr
esse
s all p
oints
and e
nhan
ces
the im
pact
of the
repo
rt wi
th cle
ar de
cision
s/ re
comm
enda
-tio
ns ou
tlined
(5
mar
ks)
Good
summ
ary o
f all p
oints
contr
ibutin
g to t
he re
port
with
some
impa
ct; m
ostly
clea
r de
cision
s/ re
comm
enda
tions
ou
tlined
(4
mar
ks)
Fair s
umma
ry, ad
dres
ses
some
point
s, lac
ks im
pact
addr
essin
g som
e of th
e re
levan
t are
as w
ithin
the
repo
rt (3
mar
ks)
Poor
summ
ary o
f the r
epor
t; lac
ks de
tail o
f are
as an
d de
cision
s/ re
comm
enda
tions
ma
de
(2 m
arks
)
Very
poor
or no
n-ex
isten
t sum
-ma
ry. In
clude
s, if a
t all,
any
decis
ions/
reco
mmen
datio
ns
made
(0
-1 m
ark)
Situ
atio
n an
alysis
and
SWOT
10 m
arks
Exce
llent
summ
ary o
f the b
ack-
grou
nd of
the b
rand
. Tho
roug
h ov
ervie
w of
the cu
rrent
situa
tion
base
d on r
esea
rch (in
cludin
g int
erna
l, micr
o- an
d mac
ro-
envir
onme
nts).
SW
OT an
alysis
de
tailed
and d
iffere
ntiate
d (9
-10 m
arks
)
Good
summ
ary o
f the b
ack-
grou
nd of
the b
rand
. Go
od
over
view
of the
curre
nt sit
ua-
tion b
ased
on re
sear
ch
(inclu
ding i
ntern
al, m
icro-
an
d mac
ro-e
nviro
nmen
ts).
SWOT
analy
sis m
ostly
de-
tailed
and d
iffere
ntiate
d (7
-8 m
arks
)
Fair s
umma
ry of
the ba
ck-
grou
nd of
the b
rand
. Sati
s-fac
tory o
vervi
ew of
the c
ur-
rent
situa
tion b
ased
on so
me
rese
arch
(inclu
ding m
ost
inter
nal, m
icro-
and m
acro
-en
viron
ments
). S
WOT
an
alysis
prov
ided h
owev
er
lacks
some
diffe
renti
ation
(5
-6 m
arks
)
Poor
summ
ary o
f the b
ack-
grou
nd of
the b
rand
. Lim
ited
over
view
of the
curre
nt sit
ua-
tion b
ased
on m
inima
l re-
sear
ch (in
cludin
g som
e inte
r-na
l, micr
o- an
d mac
ro-
envir
onme
nts).
SW
OT
analy
sis la
cks d
etail a
nd
limite
d diffe
renti
ation
(3
-4 m
arks
)
Very
poor
summ
ary o
f the
back
grou
nd of
the b
rand
. Poo
r an
d extr
emely
limite
d ove
rview
of
the cu
rrent
situa
tion b
ased
mi
nimal,
if an
y, re
sear
ch
(inclu
ding s
ome i
ntern
al, m
icro-
an
d mac
ro-e
nviro
nmen
ts).
SWOT
analy
sis in
clude
d yet
lacks
detai
l and
limite
d or n
o dif
feren
tiatio
n (0
-2 m
arks
) Ob
jectiv
es
10
mar
ks
Exce
llent
identi
ficati
on of
over
all
goals
whic
h are
reali
stic,
achie
v-ab
le an
d mea
sura
ble ob
jectiv
es
(9-1
0 mar
ks)
Good
iden
tifica
tion o
f ove
rall
goals
whic
h are
mos
tly re
al-ist
ic, ac
hieva
ble an
d mea
sur-
able
objec
tives
(7
-8 m
arks
)
Fair i
denti
ficati
on of
over
all
goals
; how
ever
limita
tions
ar
e pre
sent
in ter
ms of
their
ab
ility t
o app
ear r
ealis
tic,
achie
vable
and m
easu
rable
ob
jectiv
es
(5-6
mar
ks)
Poor
iden
tifica
tion o
f ove
rall
goals
whic
h are
uncle
ar an
d lim
ited i
n bein
g rea
listic
, ac
hieva
ble an
d mea
sura
ble
objec
tives
(3
-4 m
arks
)
Very
poor
, if an
y, id
entifi
catio
n of
over
all go
als w
hich a
re
uncle
ar an
d fail
to ad
dres
s iss
ues c
once
rning
being
: rea
lis-
tic, a
chiev
able
and m
easu
rable
ob
jectiv
es
(0-2
mar
ks)
Targ
et m
arke
t(s)
15
mar
ks
Exce
llent
and a
ppro
priat
e seg
-me
ntatio
n, tar
getin
g and
posi-
tionin
g stra
tegies
iden
tified
and
justifi
ed
(13-
15 m
arks
)
Good
and m
ostly
appr
opria
te se
gmen
tation
, targ
eting
and
posit
ioning
stra
tegies
iden
ti-fie
d and
justi
fied
(10-
12 m
arks
)
Fair a
nd at
times
uncle
ar
segm
entat
ion, ta
rgeti
ng an
d po
sition
ing st
rateg
ies id
enti-
fied
(7-9
mar
ks)
Poor
and m
ostly
inap
prop
ri-ate
or lim
ited s
egme
ntatio
n, tar
getin
g and
posit
ioning
str
ategie
s ide
ntifie
d; lim
ited
justifi
catio
n (4
-6 m
arks
)
Very
poor
and i
napp
ropr
iate o
r lim
ited s
egme
ntatio
n, tar
getin
g an
d pos
itionin
g stra
tegies
ide
ntifie
d; lim
ited o
r no j
ustifi
ca-
tion
(0-3
mar
ks)
Mark
etin
g st
rate
gies
25 m
arks
Exce
llent
identi
ficati
on an
d jus
ti-fic
ation
thro
ugh u
nique
, cre
ative
an
d plau
sible
ideas
appli
ed to
the
elem
ents
(relev
ant)
to the
ma
rketin
g mix
and t
he pr
oduc
t ch
osen
Inc
orpo
ratio
n of m
arke
ting t
he-
ory.
(20-
25 m
arks
)
Good
iden
tifica
tion a
nd ju
sti-
ficati
on th
roug
h mos
tly
uniqu
e and
plau
sible
ideas
ap
plied
to th
e elem
ents
(relev
ant)
to the
mar
ketin
g mi
x and
the p
rodu
ct ch
osen
. Inc
orpo
ratio
n of m
arke
ting
theor
y. (1
5-19
mar
ks)
Fair i
denti
ficati
on, a
lthou
gh
justifi
catio
n lim
ited;
ideas
are
limite
d in r
elatio
n to t
heir
relev
ance
to th
e mar
ketin
g mi
x and
the p
rodu
ct ch
osen
. Lim
ited i
ncor
pora
tion o
f ma
rketin
g the
ory.
(10-
14 m
arks
)
Poor
iden
tifica
tion,
little
justi-
ficati
on; id
eas a
re lim
ited o
r un
clear
in re
lation
to th
eir
relev
ance
in re
lation
to th
e ma
rketin
g mix
and t
he pr
od-
uct c
hose
n. Mi
nimal
incor
po-
ratio
n of m
arke
ting t
heor
y. (5
-9 m
arks
)
Very
poor
iden
tifica
tion,
little,
if an
y, jus
tifica
tion;
ideas
are
inapp
ropr
iate o
r unc
lear in
re
lation
to th
e mar
ketin
g mix
and t
he pr
oduc
t cho
sen.
Mini-
mal o
r no i
ncor
pora
tion o
f ma
rketin
g the
ory.
(0-4
mar
ks)
Budg
et
10
mar
ks
Exce
llent
budg
et wi
th co
mplet
e de
tails
of re
levan
t exp
endit
ures
to
achie
ve st
rateg
ies
(9-1
0 mar
ks)
Good
budg
et wi
th de
tails
of mo
stly r
eleva
nt ex
pend
iture
s to
achie
ve st
rateg
ies
(7-8
mar
ks)
Fair b
udge
t with
some
detai
ls of
mostl
y rele
vant
expe
ndi-
tures
to ac
hieve
stra
tegies
(5
-6 m
arks
)
Poor
budg
et lac
king d
etails
of
most
expe
nditu
res t
o ac
hieve
stra
tegies
(3
-4 m
arks
)
Very
poor
budg
et wi
th lim
ited,
if an
y, ex
pend
iture
s to a
chiev
e str
ategie
s (0
-2 m
arks
)
Marking Criteria
Assignment
7
Impl
emen
tatio
n an
d sc
hedu
le
5 mar
ks
Timeli
ne fo
r imple
menta
tion o
f all
activ
ities e
xtrem
ely de
tailed
, ali
gning
with
the p
rodu
ct/ma
rketin
g plan
stra
tegies
chos
en
(5 m
arks
)
Timeli
ne fo
r imple
menta
tion
of all
activ
ities g
ener
ally w
ell
detai
led, a
lignin
g mos
tly w
ith
the pr
oduc
t/ mar
ketin
g plan
str
ategie
s cho
sen
(4 m
arks
)
Timeli
ne fo
r imple
menta
tion
of ac
tivitie
s ide
ntifie
d al-
thoug
h som
e rele
vant
area
s mi
ssing
in re
lation
to th
e pr
oduc
t/ mar
ketin
g plan
str
ategie
s cho
sen
(3 m
arks
)
Timeli
ne fo
r imple
menta
tion
of ac
tivitie
s lim
ited i
n rela
tion
to the
prod
uct/ m
arke
ting
plan s
trateg
ies ch
osen
(2
mar
ks)
Timeli
ne fo
r imple
menta
tion
activ
ities l
ackin
g or p
rovid
ing no
de
tail fa
iling t
o alig
n with
the
prod
uct/ m
arke
ting p
lan st
rate-
gies c
hose
n (0
-1 m
ark)
Evalu
atio
n an
d co
ntro
l 10
mar
ks
Exce
llent
evalu
ation
and c
ontro
l pr
oced
ures
iden
tified
and j
usti-
fied i
nclud
ing m
easu
reme
nt pr
oced
ures
and a
conti
ngen
cy
plan
(9-1
0 mar
ks)
Good
evalu
ation
and c
ontro
l pr
oced
ures
iden
tified
and
justifi
ed in
cludin
g mea
sure
-me
nt pr
oced
ures
and a
con-
tinge
ncy p
lan
(7-8
mar
ks)
Fair e
valua
tion a
nd co
ntrol
proc
edur
es id
entifi
ed w
ith
some
justi
ficati
on in
cludin
g so
me m
easu
reme
nt pr
oce-
dure
s and
a co
nting
ency
pla
n (5
-6 m
arks
)
Poor
evalu
ation
and c
ontro
l pr
oced
ures
iden
tified
and
minim
al jus
tifica
tion i
nclud
ing
limite
d mea
sure
ment
proc
e-du
res a
nd m
inima
l iden
tifica
-tio
n of a
conti
ngen
cy pl
an
(3-4
mar
ks)
Very
poor
evalu
ation
and c
on-
trol p
roce
dure
s ide
ntifie
d, if a
t all
, inclu
ding l
imite
d or n
o me
asur
emen
t pro
cedu
res o
r co
nting
ency
plan
(0
-2 m
arks
)
Conc
lusio
n an
d fu
ture
re
com
men
datio
ns
5 mar
ks
An ex
celle
nt su
mmar
y of th
e pla
n pro
vided
inclu
ding r
eleva
nt re
comm
enda
tions
for t
he m
e-diu
m to
long-
term
(5 m
arks
)
A go
od su
mmar
y of th
e plan
pr
ovide
d inc
luding
mos
tly
relev
ant r
ecom
mend
ation
s for
the m
edium
to lo
ng-te
rm
(4 m
arks
)
A fai
r sum
mary
of the
plan
pr
ovide
d inc
luding
some
re
comm
enda
tions
(3
mar
ks)
A po
or su
mmar
y of th
e plan
pr
ovide
d, lim
ited r
ecom
men-
datio
ns id
entifi
ed
(2 m
arks
)
A ve
ry po
or su
mmar
y of th
e pla
n pro
vided
, if at
all, l
imite
d or
no re
comm
enda
tions
(0
-1 m
arks
)
Pres
enta
tion
of re
port
5 mar
ks
Exce
llent
Engli
sh ex
pres
sion,
spell
ing, g
ramm
ar, r
efere
ncing
thr
ough
out a
ssign
ment,
exce
llent
quali
ty of
refer
ence
s, co
rrect
use
of qu
otes,
corre
ct re
port
style,
ov
erall
pres
entat
ion, in
clusio
n of
all ne
cess
ary p
aper
work
and C
D as
per t
he in
struc
tions
in th
e plan
ou
tline
(5 m
arks
)
Good
Eng
lish e
xpre
ssion
, sp
elling
, gra
mmar
, refe
renc
-ing
thro
ugho
ut as
signm
ent,
quali
ty of
refer
ence
s, mo
stly
corre
ct us
e of q
uotes
, cor
rect
repo
rt sty
le, ov
erall
pres
enta-
tion,
inclus
ion of
all n
eces
-sa
ry pa
perw
ork a
nd C
D as
pe
r the
instr
uctio
ns in
the
plan o
utline
(4
mar
ks)
Fair E
nglis
h exp
ress
ion,
spell
ing, g
ramm
ar, s
ome
refer
encin
g thr
ough
out a
s-sig
nmen
t, som
e qua
lity re
fer-
ence
s, mo
stly c
orre
ct us
e of
quote
s, co
rrect
repo
rt sty
le,
over
all pr
esen
tation
, inclu
-sio
n of a
ll nec
essa
ry pa
per-
work
and C
D as
per t
he
instru
ction
s in t
he pl
an ou
t-lin
e (3
mar
ks)
Poor
Eng
lish e
xpre
ssion
, sp
elling
, gra
mmar
, refe
renc
-ing
thro
ugho
ut as
signm
ent,
quali
ty of
refer
ence
s lim
ited,
limite
d cor
rect
use o
f quo
tes,
some
attem
pt at
repo
rt sty
le,
over
all pr
esen
tation
need
s wo
rk, in
clusio
n of m
ost p
a-pe
rwor
k and
CD
as pe
r the
ins
tructi
ons i
n the
plan
out-
line
(2 m
arks
)
Very
poor
Eng
lish e
xpre
ssion
, sp
elling
, gra
mmar
, refe
renc
ing
mostl
y inc
orre
ct or
non-
exist
ent
throu
ghou
t ass
ignme
nt, qu
ality
of re
feren
ces l
imite
d if in
clude
d, co
rrect
use o
f quo
tes or
too
many
dire
ct qu
otes,
over
all
pres
entat
ion ne
eds w
ork,
no or
lim
ited a
ttenti
on to
pape
rwor
k an
d CD
as pe
r the
instr
uctio
ns
in the
plan
outlin
e (0-
1 mar
k)
MIN
US
late
pen
alty
/ ove
r wor
d lim
it To
tal
Mar
k
/1
00
/35%
Gen
eral
com
men
ts
Mar
ker’s
Initi
als
Assignment
8
Product Hints for Marketing Plan One of the most important aspects in developing a solid marketing plan lies in understanding how you can provide value to your customers throughout the life-cycle of your products. I know I have ‘harped on’ about this during the semester, but it is an important point. Given how competitive the marketplace is today, I want you to think about how you can make the product that you have chosen for your marketing plan, distinctive and sustainable. Try to consider the following types of questions when designing your product and brand strategy. Products that are already offered in your product category • What products are being offered, at what price and to which target market groups? • How healthy is the industry (i.e. what are the current trends and how is that impacting upon profitability of the parent company and its competitors)? • How do the new product offerings compare to existing older products? • What share of the market does your company have? • How does the SAO or Fruit Loops brand contribute to the ‘bottom line’ of their respective companies? • How important is the product you have chosen to the equity (value) of the parent brand? (ie. Kelloggs, Arnotts). Remember that brand equity promotes customer loyalty to the brand. Do product sales differ in different geographic areas? Your plan • How does your product support the parent organisation’s goals and objectives? (review their mission, plans etc) • Is there any room for modifying the product? • How will your new products, bundling approach etc, provide customer value (ie. packaging, branding etc)? Remember you don’t need to come up with a new product, this is just a suggestion as many of you have spoken to me about doing this. • How does your new product compare with what is out there? • What is the position of the product in terms of the product life cycle (i.e. Introduction, growth, maturity and decline) and industry maturity? NB. Make sure your new idea doesn’t cannibalise existing lines! Branding Branding gives the product (and company) a distinct identity –something that can be leveraged to extract value from the Target Market group(s) AND it is a central aspect of the product/company POSITIONING.
Additional help
Source: Adapted from Elliot, Rundle-Thiele and Waller (2010), Wood (2011), Pride et al. (2007) and Lodish et al. (2007)
Assignment
9
Pricing Hints for Marketing Plan Remember that pricing is vital in marketing as it directly produces revenue while other elements of the marketing mix require investments in time, money and effort. Pricing is also very useful to marketers in that prices may be changed and implemented quickly and at lesser cost than other functions (e.g. promotion, distribution etc). When designing your pricing strategy you need to consider matching up the total price with the total benefits received (i.e. Value).
Try and answer these kinds of questions when designing your pricing strategy for your plan this semester.
Internal factors • What is the benefit of your chosen pricing strategy for the organisation as a whole? • How will your adopted pricing strategy actually assist your chosen promotional, targeting and product plans? • How will your pricing strategy fit with your promotional campaigns? • Is it best for you to emphasise pure price competition? • Is it better to focus on non-price competition? • How will the costs of your product influence the pricing floor? How will pricing affect revenues and break-even quantities? External factors • How has the industry behaved in regards to pricing in the past? • How price-sensitive are your customers? • What are the prices/ costs (just generalise as much as you can here) for competing products? • What kind of price-competition are you likely to have with market leaders/followers etc, if you adopt your chosen price strategy? What kind of non-price approaches could you adopt when faced with pricing competition now and in the future? Also think about how you can adapt prices so as to achieve your objectives (eg. sales,
Total Benefits Quality Features Service Availability Performance Personal satisfaction
Price Purchasing price Shipping Training, repairs Time and effort to find, buy and use Accessory pricing Financing Disposal/ recycling fees
Assignment
10
market share, return on investment). Strategies like discounting, allowances (to wholesalers for example), bundling etc. Just review the lecture notes for help with different pricing strategy approaches. Don’t forget to consider things like: • Price elasticity of demand • Customer Perceived Value • Pricing objectives (matched up to organisational mission and goals), e.g. Financial objective ‘to set prices to achieve a gross profit margin of 27% on last year’s sales) etc. • Competitors (direct and indirect) Industry life-cycle and pricing (maturity of market, competition and pricing strategy) General tip 1. As you plan pricing, determine what you want to achieve in the context of the marketing plan’s financial, marketing, and societal objectives. 2. Breakeven analysis (volume sales to breakeven) Break even volume = fixed cost Price-variable cost Fixed costs include rent, payroll (ie. do not vary with volume of products sold) Variable costs include expenses of raw materials, packaging, distribution etc. (i.e. vary with volume sold). Price is the selling price. Don’t forget to ask myself or your tutors if you need any further clarification.
Assignment
11
Marketing Channels and Logistics: Place Hints for Marketing Plan When developing your plan, you need to consider the connections and flows in the value chain (i.e. the supply chain which incorporates a number of related functions that will add value during each step of the distribution process). Try to consider the functions of each channel member (wholesaler, retailer etc), and how your logistics strategy will allow the efficient transportation, storage and management of inventory to ensure that you provide your goods at the right place and at the right time to your consumer markets. Try to consider the following types of questions when designing your marketing channels and logistics (Placement) strategy). • Product channels • What kind of information (product information) and money will flow through the value
chain? • How will your access to resources assist in this process? Are there any other things
you need to consider (e.g. outsourcing)? • What is the likely cost to your organisation to ensure the efficient functioning of the
supply chain? • How does competition, product characteristics/life cycle, targeting, and market issues
effect your choice of distribution strategy? • How do your target market(s) want to access your products? • What will you supply chain look like? And what functions do you need them to perform
(inventory, warehousing, providing promotional material, shelf space)? Logistics • Which channel members will provide which logistics functions? • Who will store and transport the products and specify how, when and where? • Who will manage the inventory, take orders, and arrange for billing and shipment? • How will your marketing goals (e.g. increase market share) impact upon your choice of
logistics strategy? • What are the major competencies that your channel partners need to possess? How
responsive do you need to be for your customers (e.g. minimise stock-outs etc)? Specific issues • Will you adopt intensive, selective or exclusive distribution strategies (think about the
levels of consumer involvement to help in this process)? • Perhaps you want to think of internal factors (goals, available resources and desired
levels of control) and external factors (customers, environmental considerations, competitors, availability of intermediaries).
Assignment
12
Promotion Hints for Marketing Plan When you consider promotion, think of how you plan to ‘connect’ with your customers. As I have mentioned in the lectures, there is a plethora of advertising messages competing for your customer’s attention. Try to think about how you can develop a relationship with your target market(s) through ongoing dialogue, messages and the use of media that will build brand awareness, product trial, and ongoing loyalty. Don’t forget to adopt an ‘Integrated Marketing Communications’ approach (Text chapter 9, pp. 292-296) so as to ensure that you are getting a ‘consistent’ message out there. When building this section think about the main purpose of promotion – to inform and influence consumer behaviour. Try to think of how to frame your approach (maybe a new product, product bundle, meeting a social need etc) and then describe and apply different (and new) communications techniques (e.g. social media, word of mouth, product trials in-store, viral, guerrilla marketing, buzz marketing, other forms of public relations etc). Try to consider the following types of questions when designing your promotional strategy. Audience • Recall who your Target Market or TMs is/are? Try to think of the individuals that
influence behaviour and also the people that consumer your products (they may be the same or perhaps a little different)
• What is the general profile of your TMs? How does the behaviour of your audience actually influence the media that they choose and are generally responsive to?
Budgetary considerations • What do you wish your promotional strategy to achieve? • Tie-in the communications and marketing objective to ensure that they are on the
‘same page’ Try to develop a plausible promotional budget (I understand you may have to generalise a little bit – I have some helpful hints on learning@griffith)
Specific issues • Are there any legal/ ethical frameworks you need to consider (e.g advertising to
children)? • What kinds of cultural, socio-economic and technology issues (email, facebook etc)
need to be considered? • How do you go about researching this? Are you going to pre-test your
communications strategy? And how will you ensure that the communications strategy is sustainable (Don’t forget to specify CONTINGENCIES – i.e. if promotion doesn’t work, what will you do)?
• Maybe consider push and pull strategies. • Consider things like advertising, sales promotion, public relations, direct marketing
etc.) Just try to ‘match-up’ your strategies with your budget (i.e. you wouldn’t normally need a $1,000,000 advertising budget if you were going to rely solely upon viral marketing).
V2.4 12/02/2009
>>Referencing Guide: APA Style (American Psychological Association Style) • All material used in academic writing should be referenced in your text, whether you give a summary of others’
ideas, or a direct quote. This is called in-text referencing or citing.
• It is also essential that either a Reference List or Bibliography be provided, starting on a new page at the end of the text. Check requirements with your lecturer.
• A Reference List contains only publications cited in your assignment, report etc. A Bibliography contains all cited publications plus uncited publications considered to be relevant to the subject.
• Failure to provide in-text referencing and Reference List or Bibliography is called plagiarism, which can attract heavy penalties.
• Following are some examples on citing resources, using the APA style. These examples do not cover every contingency; please refer to the sources listed overleaf for more information.
• Several Schools have also compiled their own referencing guides, or web sites that deal with referencing. Check with your lecturer or tutor, or look on http://www.griffith.edu.au/elements to see if there is a guide for your school.
• Some specialist styles used at Griffith: Griffith Law School (Griffith Law Review style guide): http://www.griffith.edu.au/publication/glr/frameset3.html Queensland Conservatorium Style and Research Guide (available on Learning@Griffith)
Check with your lecturer or tutor for each course about their preferred referencing style and/or preferred referencing guides. You should do this particularly for those cases where you see “Consult your lecturer or tutor” printed in this guide. In-Text Referencing Citing Print Sources Direct quote: a) Provide the author, date, and specific page citation in the text and enclose the quotations with double quotation marks. (For works with 2 authors, cite both names in text. For works with 3 or more authors, cite all authors for the first occurrence: thereafter use “et al.” after the first author’s name). b) When the author’s name is mentioned in text add year and
page numbers only (in brackets). c) Display a quotation of 40 or more words in freestanding
double-spaced block indented 5 spaces; do not use quotation marks.
Example: a) “A person who reports a chronically low level of energy will
have a managed...” (Barry, 2001, p. 46). b) Barry (2001, p. 46) argues in his report that “a person who..” c) Any break in the inflow of capital had wide-ranging ramifications: The vulnerability of a small economy was increased by the structure of Australian trade, with primary exports exchanged for manufactured consumer and producer goods. (White et al., 1992, p. 181).
Paraphrase: a) Provide the author and date, as with a direct quote (see
previous examples). Page number not usually required, however, see APA manual (page 121, paragraph 2) for more information. Consult your lecturer or tutor.
Example: a) Barry (2001) refers to the person’s level of energy. or This can be attributed to energy levels (Barry, 2001).
Secondary Sources: a) When using a quote or idea from one author found in the work of another author. Provide original author, then “as cited in”, followed by the secondary author/s, date and page number for a direct quote (see above for paraphrase). NB. The reference list provides details of the secondary source only.
Example: a) Gardener (as cited in Biggs & Tang, 2007, p. 82) states… or …by students (Gardiner as cited in Biggs & Tang, 2007).
Citing Electronic Sources Example: a) World Wide Web documents are cited just like printed works. When citing a specific part of a document without page numbers use paragraph numbers, if they are visible. Use the abbreviation ‘par.’ or “pars.” b) Display a quotation of 40 or more words in freestanding
double-spaced block indented 5 spaces; do not use quotation marks.
a) “A concern for progress is central to the public agendas of modern societies” (Leet, 2002, para. 1). or As Myers (2002, ¶ 5) phrases it, “positive emotions….” b) Set out as per Example (c) above.
List of References • Use indentation in your reference lists: indent the second and following lines of each item (see examples below) • The list should be alphabetised by the first word in each reference, with a blank line between each reference Printed Sources – Books Example: a) Single Author. b) Multiple Authors – all authors to be listed in reference list. c) Organisation as author - when the author and publisher are identical, use the word Author as the name of the publisher (see page 230, section 4.14 of APA Manual) d) Editions. e) No author or editor – if no author or editor is given, the title is used. Alphabetise the entry by the first significant word in the title.
a) Russell, C.S. (2001). Applying economics to the environment. New York: Oxford University Press. b) Bartol, K., & Martin, D. (2000). Management. New York: McGraw-Hill. c) Department of Families, Youth and Community Care. (1997). Implementation of national standards for outside school hours care in Queensland. Brisbane: Author. d) Sisk, H. (1977). Management and organization (3rd ed.). Cincinnati: South-Western. e) The Oxford English dictionary (2nd ed.). (1989). Oxford: Clarendon Press.
Printed Sources – Edited Works Example: a) Single Editor. b) Multiple Editors – all editors to be listed.
a) Rosner, R. (Ed.). (2003). Textbook of adolescent psychiatry. London: Arnold. b) Kerr, J., & Sweatman, C. (Eds.). (2003). Women reinventing globalisation. Oxford: Oxfam.
Printed Sources – Other Example: a) Books in a series. b) Book Chapter (in a book with an editor). c) Course Study Guide – articles and book chapters in your Course Study Guide might be referenced as a standard journal or book chapter (or part thereof), or as a chapter in your Study Guide. Consult your lecturer or tutor.
a) Grand, S. (2002). The reproduction of evil: a clinical and cultural perspective. Vol 17 Relational perspective book series. Hillsdale, NJ: Analytic Press. b) Cavanaugh, J.C. (1999). Theories of aging in the biological, behavioral, and social sciences. In J.C. Cavanaugh & S.K. Whitbourne (Eds.), Gerontology : an interdisciplinary perspective (pp. 1-32). Oxford: Oxford University Press.
Non book Material Example: a) Journal Articles/Newspaper Articles – provide the issue number only when each issue begins at page 1. If there is a month/year only provided, use the format (1994, April). For newspapers, use “p.” or “pp.” to designate page. numbers. b) Videos. c) ABS Publications.
a) Newton, P. (2001). Urban Australia 2002. Australian Planner, 39(1), 37-45. b) Wiggins, J. (Director). (1986). The rhetoric of advertising [Videorecording]. Sydney: Australian Film Institute. c) Australian Bureau of Statistics. (2002). Balance of payments and international investment position, Australia, December Quarter 2002 (No. 5302.0). Canberra, Australian Capital Territory: Author.
Legislation a) APA Style does not cover citing Australian legislation in a
List of References. You may wish to use the Commonwealth author-date style, but you should consult your lecturer or tutor to confirm requirements.
Electronic Journal Articles (library database) Example: a) Cite article as per a paper copy of the journal article, also include the database title and the retrieval date.
a) Gibson, R. K., & Ward, S. (2002). Virtual campaigning: Australian parties and the impact of the internet. Australian Journal of Political Science, 37, 99-129. Retrieved April 10, 2002, from the Catchword database.
World Wide Web Resources (including books, government documents, and Web sites) a) An entire Web site. b) No author details – if no author is identified, begin reference with the document title. c) No date identified – (n.d.) indicates no publication date.
a) Queensland Government. (2006). Department of Natural Resources and Water. Retrieved January 8, 2007, from http://www.nrw.qld.gov.au b) Fort Lytton. (n.d.). Yahoo health. Retrieved January 11, 2007, from http://www.geocities.com/TheTropics/4303/lytton.html c) Australian Sports Commission. (n.d.).Australian Institute of Sport. Retrieved January 11, 2007, from http://www.ais.org.au
Guides to citing information: Example: a) APA Style. or b) APA web site – http://www.apastyle.org
a) American Psychological Association. (2001). Publication Manual of the American Psychological Association (5th ed.). Washington, DC: Author.
Other Useful Sites Example: a) Endnote – a database management package that allows you to organise your references, and create instant bibliographies. b) Electronic References and Scholarly Citation of Internet Sources – this document keeps track of materials dealing with the emerging standards for electronic references and scholarly citations of Internet Sources in both paper and online publications.
a) http://www.griffith.edu.au/library/workshops-training/self-help-resources/endnote b) http://www.spaceless.com/WWWVL
Marketing Plan
1
Marketing PlanThe following activities are designed to assist you with completing your 100MKT marketing plan assignment. It is a good idea for the activities to be completed as a group so that the plan has a logical flow.
You will find a sample marketing plan in your text on page 502 and a template on Learning@Griffith electronic resources. Please talk to your tutor if you require any assistance.
Marketing Plan
2
In your group conduct a SWOT analysis for your chosen product (Text pp. 55-57)
Group activity 1 Strengths
Weaknesses
Opportunities
Threats
Marketing Plan
3
In your group conduct a PEST analysis for your chosen product (Text pp. 48-51)
Group activity 2 PEST Analysis Template
Situation being analysed: ______________________________________________________________________
PEST analysis (political, economical, social, technological) assesses a market, including competitors, from the standpoint of a particular proposition.
Note: PEST analysis can be useful before SWOT analysis because PEST helps to identify SWOT factors. PEST and SWOT are two different perspectives but can contain common factors. SWOT stands for strengths, weaknesses, opportunities, threats. SWOT analysis explanation and templates are at www.businessballs.com/swotanalysisfreetemplate.htm © Businessballs 2009. A free PDF version of this tool and information about PEST analysis methods are available at www.businessballs.com/pestanalysisfreetemplate.htm
criteria examples ecological/environmental current legislation future legislation international legislation regulatory bodies and processes government policies government term and change trading policies funding, grants and initia-tives home market pressure- groups international pressure- groups wars and conflicts
political economical criteria examples home economy economy trends overseas economies general taxation taxation specific to prod-uct/services seasonality issues market/trade cycles specific industry factors market routes trends distribution trends customer/end-user drivers interest/ exchange rates international trade and monetary issues
criteria examples lifestyle trends demographics consumer attitudes and opinions media views law changes affecting social factors brand, company, technol-ogy image consumer buying patterns fashion and role models major events and influ-ences buying access and trends ethnic/religious factors advertising and publicity ethical issues
social technological criteria examples competing technology development research funding associated/dependent technologies replacement technology/solutions maturity of technology manufacturing maturity and capacity information and communi-cations consumer buying mecha-nisms/technology technology legislation innovation potential technology access, li-cencing, patents intellectual property issues global communications
Marketing Plan
4
Activity 2 help
Marketing Plan
5
In your group consider the types of market research needed for you to complete the plan (Text pp. 73-4)
Group activity 3
Research Problem
Secondary Research sources
Group/ socio-cultural factors influencing buying behaviour
Personal/Psychological factors influencing buying behaviour
Level of consumer involvement with buying your product
Decision making stages (eg. time, information search of potential buyers
In your group outline the buying behaviour of potential customers of your product (Text pp. 104-114)
Marketing Plan
6
Market research involves five major components: 1. defining the research problem 2. designing the research methodology 3. collecting data 4. analysing data and drawing conclusions 5. presenting the results and making recommendations
Activity 3 help
Marketing Plan
7
Group activity 4 Demographic Characteristics
Geographic Characteristics
Psychographic
Behavioural
In your group analyse Target Market for your re-positioned product (Text pp. 176-182)
Current needs
How your product offering meets these needs (POSITIONING)
Future Needs
How your product offering meets these needs (POSITIONING)
In your group, analyse for each target market segment :(Text pp. 190-193)
Marketing Plan
8
Activity 4 help Segmenting consumer markets The variables for segmenting consumer markets fall into four broad categories: demographic, geographic, psychographic and behavioural variables. Effective segmentation involves choosing segmentation variables that are easy to measure and readily available, and linked closely to the purchase of the product in question . Geographic segmentation • Market segmentation based on variables related to geography. • Useful geographic variables include: climate, local population, market density, region,
topography and urban, suburban, rural footprint. Geo-demographic segmentation • Combines demographic variables and geographic variables to profile very small
areas, such as suburbs. Demographic segmentation • Market segmentation based on demographic variables, which are the vital and social
characteristics of populations, such as age, education and income. • Demographic variables are the most commonly used variables for market
segmentation. Psychographic segmentation • Market segmentation based on the psychographic variables of lifestyle, motives and
personality attributes. • Psychographic segmentation is based on the need to understand not who you are,
but how you live your life. This is reflected in activities such as hobbies or choice of entertainment
Behavioural segmentation • Market segmentation based on actual purchase and/or consumption behaviours. • Behavioural variables include: benefit expectations, brand loyalty, occasion, price
sensitivity and volume usage.
Marketing Plan
9
Market positioning The way in which target market segments perceive an organisation’s offering in relation to competing offerings. Company positioning A positioning strategy designed to create a single market perception of the entire organisation in relation to competitors. Brand positioning is how a company’s particular brands are seen, and typically focuses on distinguishing product attributes. • Communicating a product’s attributes through advertising and other promotional
campaigns is crucial in establishing an initial market position in the minds of target customers or ‘first-time’ buyers. Once customers have sampled the brand, the brand’s positioning will subsequently depend largely on the customer’s experience of the brand, so it is crucial that the organisation’s performance corresponds with its promise and its market positioning.
• Position is fundamentally important for organisations, because it describes how the organisation is perceived by the market, relative to its competitors, on the attributes that customers regard as important in their decision making. In this way, positioning describes how customers make sense of the complex, crowded marketplace and make their brand choice decisions in an efficient way. Positioning enables buyers to take a ‘shortcut’ and arrive at decisions without an excessively complex or confusing process. When it is done successfully, positioning is generally based on simple propositions, with which customers agree and which can be easily retained in memory.
• Positioning involves two steps; firstly, determining the position of the company wishes to occupy in the minds of buyers; and secondly, developing a marketing mix to reflect the expectations of the target market segment and which reflects that positioning.
Activity 4 help
Marketing Plan
10
Group activity 5 Main features of your product
(Classification/packaging)
Unique position of product compared to competitor offerings
Product Life Cycle
How will product meet needs of TM(s)
Analyse the key benefits of your product (Text pp. 205+)
Evidence of existing price competition in industry?
Is demand elastic or inelastic for your product?
Influences on price INTERNAL
2. EXTERNAL
How would you develop prices using 7 step model (pp. 501)
Analyse relevant pricing issues in relation to your product (Text pp. 241-276)
Marketing Plan
11
Activity 5 help The product • The core product - comprises the fundamental benefit that responds to the customer’s
problem of an unsatisfied need or want; the key benefit they want from a product. • The expected product - describes those attributes that actually deliver the benefit that
forms the core product; the attributes that fulfil the customer’s most basic expectations of the product. Marketers generally try to differentiate their offering using fundamental characteristics such as branding, packaging and quality standards at the expected product level.
• The augmented product - benefits that the buyer may not require as part of the basic fulfilment of their needs. The augmented product level enables marketers to significantly differentiate their offerings from those of competitors. It is often the augmented product features that form the main reason for choosing a particular brand. This can include support services, such as guarantees. Over time, features that form part of the augmented product level can become so widely incorporated into the product that they become part of the expected product layer.
• The potential product - The potential product comprises all possibilities that could become part of the expected or augmented product. This includes features that are being developed, planned or prototyped, as well as features that have not yet been conceived. Potential product features are attractive to marketers as they offer new ways to differentiate their product and increase the value for customers. Over time, many potential product features become part of the augmented product or even the expected product.
Marketing Plan
12
• Existing product expansion - The creation of a genuinely new product is relatively rare. Often the term ‘new product development’ is used to describe products that are not really new, but are significantly different from the existing product they are based on. If a product is already in the market, an organisation can capitalise on the existing product and its knowledge of the market through line extensions and product modifications.
• Line extensions are new products that are closely related to existing products in the product line. The development of line extensions is seen as a less risky and less expensive way to introduce a product. Line extensions are the most common form of ‘new’ product. A line extension product is, by definition, similar to existing products, but can focus on a different market segment or segment needs.
• Product modifications are changes in one or more characteristics of a product that allow the resultant product to supersede the earlier one. This is frequently seen in high technology products; for example, each generation of game consoles from Nintendo and Sony tend to supersede the previous ones. Even if the older products remain, their popularity and sales decline because they are not as desirable as the new version. The main types of product modification relate to:
• functionality: redesigning the product to affect its versatility, safety or convenience • quality: improving dependability and/or durability • aesthetics: changing the sensory appeal by altering the taste, texture, sound, smell
or taste. • Line extensions and line modifications can breathe new life into an existing product. Even
if the ‘new’ product developed via a line extension or line modification approach does not enjoy the rapid growth of the introduction and growth phases of the life cycle, it can result in an existing product moving from maturity or decline back to the growth phase.
PRICE • Determining pricing objectives—pricing objectives should be specific, measurable,
actionable, reasonable and timetabled. • Selecting the pricing method:
• Pricing decisions should be based on an understanding of the customer and should reflect the value of the product to the customer.
• Pricing decisions need to consider internal organisational factors and external environmental factors.
• Prices generally need to appeal to target customers, yield acceptable profit margins and provide a competitive market offer.
• Demand • The relationship between the price of a particular product and the quantity of the
product that consumers are willing to buy. • Demand-based pricing- An approach to pricing in which prices are set based on
the level of demand in the market. • Success depends on organisation’s ability to predict fluctuations in demand.
• Price elastic • Demand for which price elasticity is greater than 1 (i.e. the percentage change in
quantity demanded exceeds the percentage change in price). • Price inelastic
• Demand for which price elasticity is less than 1 (i.e. the percentage change in quantity demanded is less than the percentage change in price).
Activity 5 help
Marketing Plan
13
Brainstorm different promotional tactics for your product (Text pp. 285-327)
Match up with
Promotional activities
Target market(s)
Group activity 6
Marketing /Distribution Structure
What intermediaries (wholesaler etc) are involved?
Rationale for choice of distribution network (Why did you chose this for your Target Markets?)
Detail what distribution strategies you will use to ensure the product gets to the customer (Text pp. 334-369)
Marketing Plan
14
Activity 6 help Integrated marketing communications (IMC) The coordination of promotional efforts to maximise the communication effect. • Promotion mix Combinations of methods used to promote a product or idea The four elements of a promotion mix are:
• advertising • public relations • sales promotion • personal selling.
• Advertising • The transmission of paid messages about an organisation, brand or product to a
mass audience. Worth over $13 billion/year in Australia • Benefits: Reaches many people at relatively low cost per person • Limitation: Difficult to measure effectiveness • Advertising - the transmission of paid messages about an organisation, brand or
product to a mass audience. Advertising is a big business, worth over $13 billion a year in Australia, with many large organisations spending millions each year on traditional media advertising. The main benefit of advertising is the ability it offers to reach a lot of people at a relatively low cost per person. While advertising is expensive, its ability to reach a lot of people makes it cost effective based on price per exposure. It is also possible to aim advertising at particular target markets by choosing appropriate media. The main limitations of advertising are the difficulties in measuring its effectiveness. Because of its mass market approach, there is very limited presentation and personalisation of the marketing message carried by advertising. TV commercials are often only 30 seconds in length, which can limit the content presented.
• Competitive advertising • Using advertising to promote the features and benefits of a product relative to
competing products. • Comparative advertising
• Using advertising to directly compare a product against a competing product. • Public relations
• Communications aimed at creating and maintaining relationships between the marketing organisation and its stakeholders.
• Effective PR messages are timely, engaging, accurate and in the public interest. • Benefits: Credibility, resulting word-of-mouth, low- or no-cost, effectively combat
negative perceptions or events. • Sales promotion Offers of extra value to resellers, salespeople and consumers in a bid to increase sales.
• Used irregularly to smooth demand • Rewards the sale of company’s products • Limitations: Can lose effectiveness if overused, easily copied, public becoming
increasingly cynical about whether they offer real value. • Sales promotions • Short-term incentives to encourage purchase of a product by either resellers or
consumers. • Consumer sales promotions include: Free samples, Discounts, Premium offers,
Refunds, Loyalty programs, Rebates, Contests, Point of purchase, Coupons, Event sponsorship.
Marketing Plan
15
• Personal selling • Personal communication efforts that seek to persuade consumers to buy
products. • Expensive, high-involvement or industrial products favour personal selling • Benefits: Can be specifically tailored to individuals, so has greater influence than
advertising, sales promotions and PR strategies. • Limitations: Expensive, limited reach, labour intensive, time-consuming.
• Push policy
• An approach in which a product is promoted to the next institution in the marketing channel.
• Pull policy • An approach in which a product is promoted to consumers to create demand
through the marketing channel. • Creating an advertising campaign - the overall advertising plan is known as the
advertising campaign. An IMC approach will help determine whether advertising is the appropriate promotional approach, how much of the budget it should get and what it needs to do to complement the other promotional approaches used.
• Understand the market environment - Marketing organisations should not view
advertising in isolation, so it is important to review the marketing environment. Emerging issues, and changes in the marketing environment, such as a new technology launched by a competitor, can make a campaign ineffective.
• Knowledge of the target market ensures you know who you are sending the message to, both in terms of existing customers and potential customers. Then analyse the target market to determine what choice of advertising is most likely to reach and persuade the members of that market, or the specific target audience for the message. Identifying the target market includes researching: • demographic factors (such as age, income, education) • its geographic location • consumer attitudes • the current level of knowledge of the organisation and its products.
• Set specific objectives - Often simply to increase sales, a successful advertising campaign needs to be based on narrower specific communication objectives that will help contribute to the broader overall goal. The more specific the objective, the more measurable its achievement will be.
• Create the message strategy - The main message is known as the ‘advertising platform’, intimately linked to knowledge of the target market and to the specific objectives of the advertising campaign.
• Allocate resources - Determine a budget based on financial and other resources [human resources and time], the objectives of the campaign and what it expects the return on the investment to be. There is never an answer to ‘What is the right amount to spend?’
Activity 6 help
Marketing Plan
16
• Select media - Start with a broad plan and gradually narrow it down until they have selected particular media to use. For example, they might begin with the idea that they should publish print advertisements and eventually reach the conclusion on the specific media vehicle, such as advertising in Burke’s Backyard magazine. In addition to choosing media, choose how long to advertise for and when to run the advertisements. This aims to maximise the exposure of the message and the effectiveness of the message.
• Produce the advertisement - Create content (based on the advertising platform) and then work out how best to present that content. For print advertising, copy should aim to create a need or want in the customer, present the features and benefits of the product, and invite the customer to purchase the product. Its first task, is to grab the potential customer’s attention, which is usually achieved with a catchy headline. A storyboard is a series of sketches that synchronises the copy and imagery of an advertisement.
• Place the advertisement - The implementation of the advertising campaign involves the buying and placement of media space and time (e.g. securing television advertising spots or column space in newspapers and magazines), dedicating people and other resources to ensuring the campaign proceeds (e.g. appointing someone to liaise with Australia Post for direct mail campaigns), and monitoring the effectiveness of the campaign so that it can be improved based on initial feedback.
• Evaluate the campaign - Advertising campaigns can be evaluated before (pre-tests), during and after (post-tests) the campaign is run. Many advertisements are trialled before general release to determine whether they will be well received. During the campaign, its effectiveness can be monitored by measuring changes in sales and enquiries levels. After the campaign, its effectiveness can still be measured through changes in sales and enquiry levels, as well as by conducting market research to assess levels of attention or awareness, such as brand recognition or brand recall.
• Guerrilla marketing—The use of an aggressive and unconventional marketing approach.
• Viral marketing—The use of social networks to spread a marketing message.
Activity 6 help
Marketing Plan
17
Write each of your marketing tactics and when they will be implemented.
Group activity 7 Tactic
Months for the promo campaign
Write down how each of the objectives for the marketing plan and how they will be evaluated.
Objective
Responsibility
Review date
Evaluation
Revision
1
Revision1003MKT MID SEMESTER EXAM WORKING TIME: 1 Hr 30 Mins EXAMINATION TYPE: Closed Book NO PERUSAL This exam consists of 75 multiple choice questions + 2 bonus questions. Answer all questions on the mark sense card provided. Use a 2B pencil. STUDENTS ARE PERMITTED TO BRING THE FOLLOWING MATERIALS INTO THE EXAMINATION VENUE: • CALCULATOR: Calculators not permitted
• DICTIONARY: English translation dictionary
• OTHER MATERIALS ALLOWED: Electronic Dictionary not permitted THE FOLLOWING MATERIALS ARE SUPPLIED BY GRIFFITH UNIVERSITY: • Mark Sense Sheet 1
• THIS EXAMINATION PAPER MUST NOT BE REMOVED FROM THE EXAMINATION VENUE.
This assessment is worth twenty-five percent (25%) of your final grade for this course
Mid semester
Revision
2
Mid-sem quiz: a 1. Which of the following statements is correct? a. It is impossible to act unethically and within the
law. b. It is impossible to act ethically and within the
law. c. A society’s ethics and its laws are completely
unrelated. d. Both b and c are correct. e. Both a and c are correct.
2.Which of the following statements regarding
value is correct? a. Value means different things to different people. b. Value can be based on perception. c. Value can be a comparison of the benefits a
customer receives from a product in relation to its price.
d. Value can include product quality and after sales service.
e. All of the above statements are correct.
3. A product can be a. an idea. b. a good. c. a service. d. a person
e. all of the above.
4.Marketing involves a. a mutual exchange of value between a customer
and an organisation. b. creating, communicating and delivering a good,
service or idea. c. individuals and organisations that are part of a
product's supply chain. d. both a and b.
e. all of the above.
5. Which of the following is not a valid use of the findings from market research?
a. Identify market opportunities b. Improve understanding of the marketing
process c. Defend marketing decisions d. Respond to competitors
e. Evaluate marketing activities
6.Which of the following statements is/are false? a. Primary data is always more useful than
secondary data. b. A hypothesis is a tentative explanation that can
be tested using market research. c. A study using random sampling is more likely to
be representative of the general population than a study using quota sampling.
d. A research design must include a research question or hypothesis.
e. A and c are false.
7. If a researcher wished to determine the
proportion of the adult population that supports the Red Cross, they would most likely use
a. descriptive research. b. causal research. c. exploratory research. d. focus groups.
e. experimentation.
8. A teenager purchases clothing that will enable
her to "fit in" with the fashion style favoured by her friends. In a marketing sense, this could best be described as an example of the teenager's purchase being influenced by
a. her social role. b. her social status. c. her personality. d. her reference group.
e. her culture.
Revision
3
Answers: A 1. E 2. E 3. E 4. E 5. C 6. E 7. A 8. D 9. B 10. C 11. B 12. B 13. C 14. E 15. B 16. B
8. Demographic characteristics include a. lifestyle, age, and personality. b. age, education level, and income. c. personality, income, and age. d. income, age, and lifestyle.
e. none of the above.
9.High‐value purchases are relatively common in
which business market/s? a. Consumer and reseller b. Consumer c. Producer, government and institutional d. Online and consumer
e. Online
11. Despite seemingly ever‐increasing diesel
prices, Linfox continues to buy the same quantity of diesel to fuel its trucks. This example demonstrates which aspect of demand for business products?
a. Joint demand b. Inelastic demand c. Derived demand d. Elastic demand e. Fluctuating demand 12. An overall market may be able to be broadly
broken down into a. a micro‐environment. b. consumer and business markets. c. a marketing mix. d. a market position. e. none of the above 13. A target market can best be described as a. the total market for a product. b. a group of customers with different needs and
wants. c. a group of customers with similar needs and
wants. d. customers who currently purchase an
organisation's products. e. customers who don't currently purchase an
organisation's products.
14. Which of the following statements is incorrect?
a. Mass marketing is an undifferentiated approach to marketing.
b. An undifferentiated approach to marketing potentially allows an organisation to achieve economies of scale in production (large volumes of product at a low cost per unit).
c. An undifferentiated approach to marketing is best suited to situations where buyers have common wants, needs and demands.
d. All of the above statements are correct. e. Mass marketing allows for an organisation to
build close relationships with customers. 15. Which of the following statements provides
the best description of the marketing concept of positioning?
a. The methods followed by an organisation when promoting its products in the market
b. How target markets perceive an organisation, its products and brands in relation to competitors
c. An organisation's market share in relation to competitors
d. An organisation developing an appropriate marketing mix for a target market segment
e. An organisation identifying target markets for its products
16. Market segmentation variables should always a. require a lot of market research to obtain. b. be linked closely to the purchase of the product
in question. c. segment a market geographically. d. be based on demographics. e. include a psychographic component.
Answers: B 1. E 2. B 3. Exchange 4. D 5. C 6. C 7. Strategic planning 8. E 9. D 10. C 11. E 12. C 13. B 14. B 15. Socio cultural forces 16. A 17. C 18. B
Revision
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1. The marketing concept focuses on A. Achieving goals of top execs b. creating maximum visibility for the firm. c. maximising sales. d. maximising market share. e. satisfying customers’ needs in a way that helps to achieve organisational objectives. 2. A physical product you can touch is a (n) A. service
b. good. c. idea. d. concept. e. philosophy. 3. _________________ is the provision or
transfer of goods, services or ideas in return for something of value.
4. When DataComp Corp. delayed the
introduction of its new spreadsheet program to modify the package, the scheduled magazine ads needed to be revised. In this case, a change in the _______ variable caused changes in the ________ variable of the marketing mix.
A. distribution; promotion b. distribution; product c. product; price d. product; promotion e. promotion; price 5. American Express implements a program
of calling its current cardholders to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations?
a. Production b. Sales c. Marketing d. Social e. Development
6. The equation a buyer applies to assess a product’s value is
a. Value = monetary price – customer benefits
b. Value = customer costs – customer benefits
c. Value = customer benefits – customer costs
d. Value = customer benefits – monetary price
e. Value = customer benefits – time and effort
7. ___________ is the process of
establishing an organisational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy and a marketing plan.
8. Jones Inc. is preparing a written document
specifying the activities to be performed to implement and control its marketing activities. This document is called the
a. profit plan. b. marketing program. c. strategic market program. d. strategic business plan. e. marketing plan. 9. Which of the following statements is
incorrect? a. Of the three levels of planning, corporate
strategy is the broadest. b. Business-unit strategy should be
consistent with the corporate strategy. c. Marketing strategy should be consistent
with both the business-unit and corporate strategies.
d. Strategic planning begins at the marketing level and proceeds through business unit and corporate levels.
e. Strategic planning begins at the corporate level and proceeds through business unit and marketing levels.
Mid-sem quiz: b
Revision
5
10. An analysis of _________ and _________ involves the examination of internal factors that give the organisation certain advantages and disadvantages in meeting the needs of its target markets. a. opportunities and threats b. market opportunities c. strengths and weaknesses d. activities and responsibilities e. organisational resources
11. Successful business organisations should take actions to convert internal weaknesses into _________ and external threats into __________.
a. opportunities; core competencies b. core competencies; strengths c. opportunities; strengths d. strengths; core competencies e. strengths; opportunities 12. Which of the following statements about
marketing environment forces is not correct?
a. They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products.
b. They may influence customers’ reactions to a firm’s marketing mix.
c. They fluctuate slowly and thereby create threats to a firm’s marketing mix.
d. They can fluctuate quickly and dramatically.
e. They help determine whether and how, a marketing manager can perform certain marketing activities.
13. To effectively monitor changes in the
marketing environment, marketers must engage in
a. using the marketing concept. b. environmental scanning and analysis. c. information collecting. d. marketing research. e. environmental managing.
14. When Australian Pensioners Insurance Agency promotes innovative insurance products for senior pensioners, they are focusing on ______________ forces
a. technological b. demographic c. sociocultural forces d. legal e. Cultural 15. The influences in a society and its culture/
s that change people’s attitudes, beliefs, norms, customs and lifestyles are known as _________________.
16. 19. An item on the University Book Store’s
survey asks respondents to tell the store, in their own words, what they like least about textbook shopping. This item would be an example of a(n) ________ question
a. open-ended b. dichotomous c. forced-sum-choice d. multiple-choice e. limited-choice 17. When more information is needed about a
problem and the tentative hypothesis needs to be made more specific, marketers usually conduct __________ research
a. descriptive b. causal c. exploratory d. analytical statistical e. Syndicated 18. When working over the summer break for
a retail store, Jessica Spears was sent to the library to look up data on population forecasts for Brisbane. The population information she found would be considered
a. primary data b. secondary data c. information data from syndicated research
services d. second hand data e. primary database
Revision
6
Answer all questions. (Worth 20 marks) Q1 The case study identifies that Krispy Kreme is currently using public relations as their key promotional strategy. Provide a definition of this strategy (2 marks) Describe the ad-vantages and disadvantages of this strategy. (4 marks) Provide examples of the tradi-tional tools that can be used for this form of promotion. (3 marks) Q2 The case study also identifies that Krispy Kreme is using sampling. What is the moti-vation behind this strategy? Consider the product adoption process. (2 marks) How could they evaluate the effectiveness of this strategy? (2 marks) Q3 The case identifies one key change that is occurring in the marketplace. What macro-environmental force does this represent? (2 marks) Considering this change in the mar-ketplace, do you think that Krispy Kreme should consider using advertising in the future, and why? (5 marks)
Krispy Kreme case study
Revision
7
Krispy Kreme In mid-2003, a new entrant in Australia's fast-food sector made a lot of noise in the marketplace, without any advertising. Not only did American doughnut giant Krispy Kreme launch itself without advertising, it has also obtained high brand awareness levels with a no-advertising strategy. Its secret? Sampling and public relations. Although Krispy Kreme is new in Australia, it has been in the United States for many years. Founded by Vernon Rudolph in 1937, Krispy Kreme has grown to become a leading retailer of quality doughnuts, including the company's signature Original Glazed. The company currently operates more than 330 stores in 42 American states, Canada, the United Kingdom, Australia, and Zealand. The main growth, however, occurred after it became a publicly listed company in April 2000. The initial market value of the shares was US$600 million since then the market capitalisation of Krispy Kreme Doughnuts Inc. has risen more than threefold US$2 billion. The company's first store in Australia was established at Penrith in Sydney on 19 June 2003. Nevertheless, even before the store opened, many people had tried a Krispy Kreme doughnut. As part of its sampling and public relations campaign, the company gave away 25 000 dozen doughnuts (i.e. 300 000 Krispy Kremes!) in the months before the official launch. Krispy Kreme Australia's CEO John McGuigan says the strategy to use sampling and public relations was a deliberate choice: 'Really, we're just going to give people the chance to try Krispy Kreme for themselves ... On almost any day of the week we will be involved in different sampling activities ... We're going to give away a lot of doughnuts. ‘Also key to Krispy Kreme's marketing strategy is
fundraising with local community groups. The fundraising program with groups like local schools aims to raise the profile of the brand and create what McGuigan calls an 'emotional connection' with the product. However, not everyone is happy with the 'Krispy Kreme doughnut experience'. The company has been attacked for its unhealthy, high-fat, high-sugar products as well as its aggressive marketing, particularly through fundraising activities at schools at a time when there is concern over childhood obesity. Dr Tim Gill, Executive Officer of the Australasian Society for the Study of Obesity, says: ‘Clearly, they are targeting a market which they feel is very susceptible to this type of product. They are promoting in a way that is aggressive, they are promoting the access to a relatively cheap, cheerful, and what they would consider tasty product. And it's marketed at those who have disposable income and perhaps less understanding of the exact nature of the product.’ In response, the company says its products are a treat or snack product, and should be treated as such. However, it seems that criticism of Krispy Kreme is hurting the company, with the American parent company posting its first quarterly loss since going public and cutting the number of planned new stores. It has blamed consumer interest in healthier foods and the low-carb diet craze for decreasing sales. Some have also suggested that the company expanded too quickly and the doughnuts lost some of their exclusiveness once they were sold in places like supermarkets and convenience stores. However, to date the company has not changed its promotional strategy. Krispy Kreme Australia plans to open 30 stores throughout Australia and New Zealand over the next five years.
Krispy Kreme case study
Revision
8
Marks
The case study identifies that Krispy Kreme is currently using public relations as their key promotional strategy. Provide a definition of this strategy (2 marks) Describe the advantages and disadvantages of this strategy. (4 marks) Provide examples of the traditional tools that can be used for this form of promotion (3 marks) • Public relations A broad set of communication efforts used to create and maintain favourable relationships between the organisation and its stakeholders
Key advantages PR tends to be more believable and credible than company-sponsored advertising. It can stimulate word of mouth It’s cheap Perception of media endorsement
Key Disadvantages - It can be difficult to obtain exposure. The company must have something newsworthy to say
it can take time lack of control over the content (it can be altered by media personnel)
Samples of tools that can be used include: brochures, newsletters, sponsorship, news releases, an-nual reports
TOTAL 9 MARKS
Defn 2 marks
1 mark for each adv (max 2 marks)
1 mark for each dis-
adv (max 2 marks)
1 mark for each tool (max 3 marks)
Q2 The case study also identifies that Krispy Kreme is using sampling. What is the motiva-tion behind this strategy? Consider the product adoption process. (2 marks) How could they evaluate the effectiveness of this non-traditional promotional strategy? (2 marks) The Product adoption process concerns the stages buyers go through in accepting a new product. These stages are 1) awareness, 2) interest, 3) evaluation, 4) trial and 5) adoption. The motivation behind offering samples is that once consumers try the product, they are more likely to purchase it. With sampling, KK has reached stage 4 so a measure of effectiveness would be to research adop-tion rates.
TOTAL 4 MARKS
1 mark dis-cussion of adoption process +
1 mark for motivation
2 marks for eval alt’s
Q3 The case identifies one key change that is occurring in the marketplace. What macro-environmental force does this represent? (2 marks) Considering this chang in the marketplace, do you think that Krispy Kreme should consider using advertising in the future, and why? (5 marks)
The change comprises increasing consumer interest in healthier foods and low-carb diets. This represents a socio-cultural trend in the macro-environment.
Whether KK should advertise is a matter of opinion. To create awareness (stage 1 above), ad-
vertising is not required (see paragraph 1 of case). To get consumers to go through stages 2-5 above in the face of negative publicity about KK certainly requires a counter message.
If KK can communicate a credible health message without major product modification (not dis-
cernible from the case) then advertising should be considered. If not, no. This is likely to only attract more negative publicity
TOTAL 7 MARKS
1 mark for change + 1
mark for force
1 mark for yes or no
4 marks for explanation.
Students should iden-
tify strengths & weaknesses of strategy & case info
answers