Todayrsquos Plan Process (Sep 17th )

10 -1115 pm Marketing mix -7rsquoP strategy 1130 pm -100- pm Assignment

discussion ndashcore part elective 2 100- 200 pm Lunch 200 ndash 400 pm elective 3 amp4 400 -500 pm Question time

Company selection- ProductService

Product

1 Retail ndashsupermarket clothing shops

2 FMCG companies ndashNestle UnileverCadburryGlaxosmithOreal JampJ

3 Fast food ndashMac Subway Starbucks coffee

4 Electric computer manufactures ndashLG Dell

5 Property business

Service

1 Airlines

2 EducationProfessional

3 Online service providers-Amazen com

4 Banks

5 ConsultantFinancial service

6 Construction

Marketing Plan( core part)

Executive summary Introduction ndashCompany background Brief1 Marketing audit Macro analysis ndash SWOT PESTLE Micro analysis ndashSPICCPorterrsquos 5 forces Internal Analysis - 7 S frame workResources and Capabilities Gap analysis ndash(finance gap)

Setting objectives-Marketing Corporate

Corporate Increase the ROI by 5 Increase the share price by 2 Marketing Increase the customer count by 3 end of

Dec 2007 Increase the market share by 3-4 Increase the sales revenue by 4

Marketing strategy

To plan the marketing strategy need to define the target market ndashSTP and SCA

Marketing strategy models Ansoff growth matrix BCG matrix GE matrix- Porterrsquos generic strategy Porterrsquos value chain

Ansoff matrix

BCG Matrix

BCG in ndashclothing business -next

Stars Embellished Jeans and Premium Jeans Both these newer lines are proving to be bestsellers this is

good news for Next The Premium Jeans have proved to be a very successful trial of the market for Next they are a higher priced (up to 60 pounds) jean and premium jean has commanded a high degree of branding to inform customers of its benefits

Question Marks Skinny Jeans Many fashion styles are Question Marks Skinny Jeans are a current trend Next have much competition in Fast Fashion as the market is saturated and they do not offer the cheaper price

GE Matrix

Cash Cows Core Jeans Contemporary Jeans Summer Crops Belted Jeans Slouch Jeans amp Utility JeansThese lines are normally all featured in weekly bestsellers and are a lsquoreliable betrsquo for large buys allowing economies of scale to be strong and command good cost prices These styles tend to be similar from season to season with slight design update to keep sales and customers interested

Dogs Classic Styles Denim skirts (Old Style) Embellished Jeans Trinket Jeans amp Lightweight JeansThese lines are all poor sellers and are continued by Next as they feel it is important to cater for this small market who want these products (especially classic lines) and also for visual purposes in store and in customers minds

Porterrsquos generic strategy

x

Cost leader

Focus Differentiator

GE Matrix

Porterrsquos 5 forces

Potential entrants

Suppliers

Substitutes

Buyers

Bargaining power of

suppliers

Threat of substitute products or services

Bargaining power of

buyers

Threat of new entrants

Industry competitionIntense ifNumerous of similar sized competitionsSlow industry growthHigh fixed costsLack of differentiationDiverse nature of competitorsHigh strategic stakesHigh exit barriersPowerful if

Few suppliersNo substitutesIndustry not important customer of supplier groupSupplier groups products are differentiatedThreat of forward integration

Powerful ifbullLarge proportion of sellerrsquos salesbullHigh proportion of the buyerrsquos costsbullUndifferentiated productbullLow buyer switching costsbullThreat of backward integrationbullSellerrsquos product not important to quality of buyerrsquos product

Barriers to entrybullEconomies of scalebullProduct differentiationbullCapital requirementsbullSwitching costsbullAccess to distribution channelsbullCost disadvantage additional to scalebullGovernment policybullEntry-deterring pricebullExperience

Adapted from Porter 1980

Service strategy

1 Elements of service intangibility permissibility inseparatability can not own can not store

2 Service quality model SERVQUAL model ndashused to understand consumer expectations (tangible reliability responsiveness assurance empathy)

3 High service quality ndash extended marketing mix4 Service market strategies ndash TMRMCRM5 Service marketing principle ndash KAM (Pareto principle

20 - 80 policy (different loyalty schemes)6 Service marketing activities ndash direct marketing direct

mail campaign building the database telemarketing web technology

Marketing tactics -Using 7rsquoP

1 Product core improvedaugmented 2 Place intensive selective exclusive3 Price penetration skimming strategy4 Promotion publicity PR campaign5 Physical evidence service delivery clean logo Design and

comfort Smart staff uniforms and name badgesAtmosphere Give service delivery exceeded customer expectations

6 Process service delivered with quality and consistency ndash 24 hours open keep the promise Give easy payment options-online information Have a good queuing systemimplement clear procedures ndash focus on health amp safety issues

7 People brand loyalty continues employee training financial incentives and rewardsstandardized customer service internal company news letter

Implementation

1 Action plan

2 Budget setting (4 methods)

Control

Balance score card KPIrsquos measures Marketing plan evaluation methods

Elective2 -MP task 2 answer plan ( branding and NPD)

Put the NPD process and explain each steps how its work for the selected company

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Company selection- ProductService

Product

1 Retail ndashsupermarket clothing shops

2 FMCG companies ndashNestle UnileverCadburryGlaxosmithOreal JampJ

3 Fast food ndashMac Subway Starbucks coffee

4 Electric computer manufactures ndashLG Dell

5 Property business

Service

1 Airlines

2 EducationProfessional

3 Online service providers-Amazen com

4 Banks

5 ConsultantFinancial service

6 Construction

Marketing Plan( core part)

Executive summary Introduction ndashCompany background Brief1 Marketing audit Macro analysis ndash SWOT PESTLE Micro analysis ndashSPICCPorterrsquos 5 forces Internal Analysis - 7 S frame workResources and Capabilities Gap analysis ndash(finance gap)

Setting objectives-Marketing Corporate

Corporate Increase the ROI by 5 Increase the share price by 2 Marketing Increase the customer count by 3 end of

Dec 2007 Increase the market share by 3-4 Increase the sales revenue by 4

Marketing strategy

To plan the marketing strategy need to define the target market ndashSTP and SCA

Marketing strategy models Ansoff growth matrix BCG matrix GE matrix- Porterrsquos generic strategy Porterrsquos value chain

Ansoff matrix

BCG Matrix

BCG in ndashclothing business -next

Stars Embellished Jeans and Premium Jeans Both these newer lines are proving to be bestsellers this is

good news for Next The Premium Jeans have proved to be a very successful trial of the market for Next they are a higher priced (up to 60 pounds) jean and premium jean has commanded a high degree of branding to inform customers of its benefits

Question Marks Skinny Jeans Many fashion styles are Question Marks Skinny Jeans are a current trend Next have much competition in Fast Fashion as the market is saturated and they do not offer the cheaper price

GE Matrix

Cash Cows Core Jeans Contemporary Jeans Summer Crops Belted Jeans Slouch Jeans amp Utility JeansThese lines are normally all featured in weekly bestsellers and are a lsquoreliable betrsquo for large buys allowing economies of scale to be strong and command good cost prices These styles tend to be similar from season to season with slight design update to keep sales and customers interested

Dogs Classic Styles Denim skirts (Old Style) Embellished Jeans Trinket Jeans amp Lightweight JeansThese lines are all poor sellers and are continued by Next as they feel it is important to cater for this small market who want these products (especially classic lines) and also for visual purposes in store and in customers minds

Porterrsquos generic strategy

x

Cost leader

Focus Differentiator

GE Matrix

Porterrsquos 5 forces

Potential entrants

Suppliers

Substitutes

Buyers

Bargaining power of

suppliers

Threat of substitute products or services

Bargaining power of

buyers

Threat of new entrants

Industry competitionIntense ifNumerous of similar sized competitionsSlow industry growthHigh fixed costsLack of differentiationDiverse nature of competitorsHigh strategic stakesHigh exit barriersPowerful if

Few suppliersNo substitutesIndustry not important customer of supplier groupSupplier groups products are differentiatedThreat of forward integration

Powerful ifbullLarge proportion of sellerrsquos salesbullHigh proportion of the buyerrsquos costsbullUndifferentiated productbullLow buyer switching costsbullThreat of backward integrationbullSellerrsquos product not important to quality of buyerrsquos product

Barriers to entrybullEconomies of scalebullProduct differentiationbullCapital requirementsbullSwitching costsbullAccess to distribution channelsbullCost disadvantage additional to scalebullGovernment policybullEntry-deterring pricebullExperience

Adapted from Porter 1980

Service strategy

1 Elements of service intangibility permissibility inseparatability can not own can not store

2 Service quality model SERVQUAL model ndashused to understand consumer expectations (tangible reliability responsiveness assurance empathy)

3 High service quality ndash extended marketing mix4 Service market strategies ndash TMRMCRM5 Service marketing principle ndash KAM (Pareto principle

20 - 80 policy (different loyalty schemes)6 Service marketing activities ndash direct marketing direct

mail campaign building the database telemarketing web technology

Marketing tactics -Using 7rsquoP

1 Product core improvedaugmented 2 Place intensive selective exclusive3 Price penetration skimming strategy4 Promotion publicity PR campaign5 Physical evidence service delivery clean logo Design and

comfort Smart staff uniforms and name badgesAtmosphere Give service delivery exceeded customer expectations

6 Process service delivered with quality and consistency ndash 24 hours open keep the promise Give easy payment options-online information Have a good queuing systemimplement clear procedures ndash focus on health amp safety issues

7 People brand loyalty continues employee training financial incentives and rewardsstandardized customer service internal company news letter

Implementation

1 Action plan

2 Budget setting (4 methods)

Control

Balance score card KPIrsquos measures Marketing plan evaluation methods

Elective2 -MP task 2 answer plan ( branding and NPD)

Put the NPD process and explain each steps how its work for the selected company

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Service

1 Airlines

2 EducationProfessional

3 Online service providers-Amazen com

4 Banks

5 ConsultantFinancial service

6 Construction

Marketing Plan( core part)

Executive summary Introduction ndashCompany background Brief1 Marketing audit Macro analysis ndash SWOT PESTLE Micro analysis ndashSPICCPorterrsquos 5 forces Internal Analysis - 7 S frame workResources and Capabilities Gap analysis ndash(finance gap)

Setting objectives-Marketing Corporate

Corporate Increase the ROI by 5 Increase the share price by 2 Marketing Increase the customer count by 3 end of

Dec 2007 Increase the market share by 3-4 Increase the sales revenue by 4

Marketing strategy

To plan the marketing strategy need to define the target market ndashSTP and SCA

Marketing strategy models Ansoff growth matrix BCG matrix GE matrix- Porterrsquos generic strategy Porterrsquos value chain

Ansoff matrix

BCG Matrix

BCG in ndashclothing business -next

Stars Embellished Jeans and Premium Jeans Both these newer lines are proving to be bestsellers this is

good news for Next The Premium Jeans have proved to be a very successful trial of the market for Next they are a higher priced (up to 60 pounds) jean and premium jean has commanded a high degree of branding to inform customers of its benefits

Question Marks Skinny Jeans Many fashion styles are Question Marks Skinny Jeans are a current trend Next have much competition in Fast Fashion as the market is saturated and they do not offer the cheaper price

GE Matrix

Cash Cows Core Jeans Contemporary Jeans Summer Crops Belted Jeans Slouch Jeans amp Utility JeansThese lines are normally all featured in weekly bestsellers and are a lsquoreliable betrsquo for large buys allowing economies of scale to be strong and command good cost prices These styles tend to be similar from season to season with slight design update to keep sales and customers interested

Dogs Classic Styles Denim skirts (Old Style) Embellished Jeans Trinket Jeans amp Lightweight JeansThese lines are all poor sellers and are continued by Next as they feel it is important to cater for this small market who want these products (especially classic lines) and also for visual purposes in store and in customers minds

Porterrsquos generic strategy

x

Cost leader

Focus Differentiator

GE Matrix

Porterrsquos 5 forces

Potential entrants

Suppliers

Substitutes

Buyers

Bargaining power of

suppliers

Threat of substitute products or services

Bargaining power of

buyers

Threat of new entrants

Industry competitionIntense ifNumerous of similar sized competitionsSlow industry growthHigh fixed costsLack of differentiationDiverse nature of competitorsHigh strategic stakesHigh exit barriersPowerful if

Few suppliersNo substitutesIndustry not important customer of supplier groupSupplier groups products are differentiatedThreat of forward integration

Powerful ifbullLarge proportion of sellerrsquos salesbullHigh proportion of the buyerrsquos costsbullUndifferentiated productbullLow buyer switching costsbullThreat of backward integrationbullSellerrsquos product not important to quality of buyerrsquos product

Barriers to entrybullEconomies of scalebullProduct differentiationbullCapital requirementsbullSwitching costsbullAccess to distribution channelsbullCost disadvantage additional to scalebullGovernment policybullEntry-deterring pricebullExperience

Adapted from Porter 1980

Service strategy

1 Elements of service intangibility permissibility inseparatability can not own can not store

2 Service quality model SERVQUAL model ndashused to understand consumer expectations (tangible reliability responsiveness assurance empathy)

3 High service quality ndash extended marketing mix4 Service market strategies ndash TMRMCRM5 Service marketing principle ndash KAM (Pareto principle

20 - 80 policy (different loyalty schemes)6 Service marketing activities ndash direct marketing direct

mail campaign building the database telemarketing web technology

Marketing tactics -Using 7rsquoP

1 Product core improvedaugmented 2 Place intensive selective exclusive3 Price penetration skimming strategy4 Promotion publicity PR campaign5 Physical evidence service delivery clean logo Design and

comfort Smart staff uniforms and name badgesAtmosphere Give service delivery exceeded customer expectations

6 Process service delivered with quality and consistency ndash 24 hours open keep the promise Give easy payment options-online information Have a good queuing systemimplement clear procedures ndash focus on health amp safety issues

7 People brand loyalty continues employee training financial incentives and rewardsstandardized customer service internal company news letter

Implementation

1 Action plan

2 Budget setting (4 methods)

Control

Balance score card KPIrsquos measures Marketing plan evaluation methods

Elective2 -MP task 2 answer plan ( branding and NPD)

Put the NPD process and explain each steps how its work for the selected company

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Marketing Plan( core part)

Executive summary Introduction ndashCompany background Brief1 Marketing audit Macro analysis ndash SWOT PESTLE Micro analysis ndashSPICCPorterrsquos 5 forces Internal Analysis - 7 S frame workResources and Capabilities Gap analysis ndash(finance gap)

Setting objectives-Marketing Corporate

Corporate Increase the ROI by 5 Increase the share price by 2 Marketing Increase the customer count by 3 end of

Dec 2007 Increase the market share by 3-4 Increase the sales revenue by 4

Marketing strategy

To plan the marketing strategy need to define the target market ndashSTP and SCA

Marketing strategy models Ansoff growth matrix BCG matrix GE matrix- Porterrsquos generic strategy Porterrsquos value chain

Ansoff matrix

BCG Matrix

BCG in ndashclothing business -next

Stars Embellished Jeans and Premium Jeans Both these newer lines are proving to be bestsellers this is

good news for Next The Premium Jeans have proved to be a very successful trial of the market for Next they are a higher priced (up to 60 pounds) jean and premium jean has commanded a high degree of branding to inform customers of its benefits

Question Marks Skinny Jeans Many fashion styles are Question Marks Skinny Jeans are a current trend Next have much competition in Fast Fashion as the market is saturated and they do not offer the cheaper price

GE Matrix

Cash Cows Core Jeans Contemporary Jeans Summer Crops Belted Jeans Slouch Jeans amp Utility JeansThese lines are normally all featured in weekly bestsellers and are a lsquoreliable betrsquo for large buys allowing economies of scale to be strong and command good cost prices These styles tend to be similar from season to season with slight design update to keep sales and customers interested

Dogs Classic Styles Denim skirts (Old Style) Embellished Jeans Trinket Jeans amp Lightweight JeansThese lines are all poor sellers and are continued by Next as they feel it is important to cater for this small market who want these products (especially classic lines) and also for visual purposes in store and in customers minds

Porterrsquos generic strategy

x

Cost leader

Focus Differentiator

GE Matrix

Porterrsquos 5 forces

Potential entrants

Suppliers

Substitutes

Buyers

Bargaining power of

suppliers

Threat of substitute products or services

Bargaining power of

buyers

Threat of new entrants

Industry competitionIntense ifNumerous of similar sized competitionsSlow industry growthHigh fixed costsLack of differentiationDiverse nature of competitorsHigh strategic stakesHigh exit barriersPowerful if

Few suppliersNo substitutesIndustry not important customer of supplier groupSupplier groups products are differentiatedThreat of forward integration

Powerful ifbullLarge proportion of sellerrsquos salesbullHigh proportion of the buyerrsquos costsbullUndifferentiated productbullLow buyer switching costsbullThreat of backward integrationbullSellerrsquos product not important to quality of buyerrsquos product

Barriers to entrybullEconomies of scalebullProduct differentiationbullCapital requirementsbullSwitching costsbullAccess to distribution channelsbullCost disadvantage additional to scalebullGovernment policybullEntry-deterring pricebullExperience

Adapted from Porter 1980

Service strategy

1 Elements of service intangibility permissibility inseparatability can not own can not store

2 Service quality model SERVQUAL model ndashused to understand consumer expectations (tangible reliability responsiveness assurance empathy)

3 High service quality ndash extended marketing mix4 Service market strategies ndash TMRMCRM5 Service marketing principle ndash KAM (Pareto principle

20 - 80 policy (different loyalty schemes)6 Service marketing activities ndash direct marketing direct

mail campaign building the database telemarketing web technology

Marketing tactics -Using 7rsquoP

1 Product core improvedaugmented 2 Place intensive selective exclusive3 Price penetration skimming strategy4 Promotion publicity PR campaign5 Physical evidence service delivery clean logo Design and

comfort Smart staff uniforms and name badgesAtmosphere Give service delivery exceeded customer expectations

6 Process service delivered with quality and consistency ndash 24 hours open keep the promise Give easy payment options-online information Have a good queuing systemimplement clear procedures ndash focus on health amp safety issues

7 People brand loyalty continues employee training financial incentives and rewardsstandardized customer service internal company news letter

Implementation

1 Action plan

2 Budget setting (4 methods)

Control

Balance score card KPIrsquos measures Marketing plan evaluation methods

Elective2 -MP task 2 answer plan ( branding and NPD)

Put the NPD process and explain each steps how its work for the selected company

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Setting objectives-Marketing Corporate

Corporate Increase the ROI by 5 Increase the share price by 2 Marketing Increase the customer count by 3 end of

Dec 2007 Increase the market share by 3-4 Increase the sales revenue by 4

Marketing strategy

To plan the marketing strategy need to define the target market ndashSTP and SCA

Marketing strategy models Ansoff growth matrix BCG matrix GE matrix- Porterrsquos generic strategy Porterrsquos value chain

Ansoff matrix

BCG Matrix

BCG in ndashclothing business -next

Stars Embellished Jeans and Premium Jeans Both these newer lines are proving to be bestsellers this is

good news for Next The Premium Jeans have proved to be a very successful trial of the market for Next they are a higher priced (up to 60 pounds) jean and premium jean has commanded a high degree of branding to inform customers of its benefits

Question Marks Skinny Jeans Many fashion styles are Question Marks Skinny Jeans are a current trend Next have much competition in Fast Fashion as the market is saturated and they do not offer the cheaper price

GE Matrix

Cash Cows Core Jeans Contemporary Jeans Summer Crops Belted Jeans Slouch Jeans amp Utility JeansThese lines are normally all featured in weekly bestsellers and are a lsquoreliable betrsquo for large buys allowing economies of scale to be strong and command good cost prices These styles tend to be similar from season to season with slight design update to keep sales and customers interested

Dogs Classic Styles Denim skirts (Old Style) Embellished Jeans Trinket Jeans amp Lightweight JeansThese lines are all poor sellers and are continued by Next as they feel it is important to cater for this small market who want these products (especially classic lines) and also for visual purposes in store and in customers minds

Porterrsquos generic strategy

x

Cost leader

Focus Differentiator

GE Matrix

Porterrsquos 5 forces

Potential entrants

Suppliers

Substitutes

Buyers

Bargaining power of

suppliers

Threat of substitute products or services

Bargaining power of

buyers

Threat of new entrants

Industry competitionIntense ifNumerous of similar sized competitionsSlow industry growthHigh fixed costsLack of differentiationDiverse nature of competitorsHigh strategic stakesHigh exit barriersPowerful if

Few suppliersNo substitutesIndustry not important customer of supplier groupSupplier groups products are differentiatedThreat of forward integration

Powerful ifbullLarge proportion of sellerrsquos salesbullHigh proportion of the buyerrsquos costsbullUndifferentiated productbullLow buyer switching costsbullThreat of backward integrationbullSellerrsquos product not important to quality of buyerrsquos product

Barriers to entrybullEconomies of scalebullProduct differentiationbullCapital requirementsbullSwitching costsbullAccess to distribution channelsbullCost disadvantage additional to scalebullGovernment policybullEntry-deterring pricebullExperience

Adapted from Porter 1980

Service strategy

1 Elements of service intangibility permissibility inseparatability can not own can not store

2 Service quality model SERVQUAL model ndashused to understand consumer expectations (tangible reliability responsiveness assurance empathy)

3 High service quality ndash extended marketing mix4 Service market strategies ndash TMRMCRM5 Service marketing principle ndash KAM (Pareto principle

20 - 80 policy (different loyalty schemes)6 Service marketing activities ndash direct marketing direct

mail campaign building the database telemarketing web technology

Marketing tactics -Using 7rsquoP

1 Product core improvedaugmented 2 Place intensive selective exclusive3 Price penetration skimming strategy4 Promotion publicity PR campaign5 Physical evidence service delivery clean logo Design and

comfort Smart staff uniforms and name badgesAtmosphere Give service delivery exceeded customer expectations

6 Process service delivered with quality and consistency ndash 24 hours open keep the promise Give easy payment options-online information Have a good queuing systemimplement clear procedures ndash focus on health amp safety issues

7 People brand loyalty continues employee training financial incentives and rewardsstandardized customer service internal company news letter

Implementation

1 Action plan

2 Budget setting (4 methods)

Control

Balance score card KPIrsquos measures Marketing plan evaluation methods

Elective2 -MP task 2 answer plan ( branding and NPD)

Put the NPD process and explain each steps how its work for the selected company

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Marketing strategy

To plan the marketing strategy need to define the target market ndashSTP and SCA

Marketing strategy models Ansoff growth matrix BCG matrix GE matrix- Porterrsquos generic strategy Porterrsquos value chain

Ansoff matrix

BCG Matrix

BCG in ndashclothing business -next

Stars Embellished Jeans and Premium Jeans Both these newer lines are proving to be bestsellers this is

good news for Next The Premium Jeans have proved to be a very successful trial of the market for Next they are a higher priced (up to 60 pounds) jean and premium jean has commanded a high degree of branding to inform customers of its benefits

Question Marks Skinny Jeans Many fashion styles are Question Marks Skinny Jeans are a current trend Next have much competition in Fast Fashion as the market is saturated and they do not offer the cheaper price

GE Matrix

Cash Cows Core Jeans Contemporary Jeans Summer Crops Belted Jeans Slouch Jeans amp Utility JeansThese lines are normally all featured in weekly bestsellers and are a lsquoreliable betrsquo for large buys allowing economies of scale to be strong and command good cost prices These styles tend to be similar from season to season with slight design update to keep sales and customers interested

Dogs Classic Styles Denim skirts (Old Style) Embellished Jeans Trinket Jeans amp Lightweight JeansThese lines are all poor sellers and are continued by Next as they feel it is important to cater for this small market who want these products (especially classic lines) and also for visual purposes in store and in customers minds

Porterrsquos generic strategy

x

Cost leader

Focus Differentiator

GE Matrix

Porterrsquos 5 forces

Potential entrants

Suppliers

Substitutes

Buyers

Bargaining power of

suppliers

Threat of substitute products or services

Bargaining power of

buyers

Threat of new entrants

Industry competitionIntense ifNumerous of similar sized competitionsSlow industry growthHigh fixed costsLack of differentiationDiverse nature of competitorsHigh strategic stakesHigh exit barriersPowerful if

Few suppliersNo substitutesIndustry not important customer of supplier groupSupplier groups products are differentiatedThreat of forward integration

Powerful ifbullLarge proportion of sellerrsquos salesbullHigh proportion of the buyerrsquos costsbullUndifferentiated productbullLow buyer switching costsbullThreat of backward integrationbullSellerrsquos product not important to quality of buyerrsquos product

Barriers to entrybullEconomies of scalebullProduct differentiationbullCapital requirementsbullSwitching costsbullAccess to distribution channelsbullCost disadvantage additional to scalebullGovernment policybullEntry-deterring pricebullExperience

Adapted from Porter 1980

Service strategy

1 Elements of service intangibility permissibility inseparatability can not own can not store

2 Service quality model SERVQUAL model ndashused to understand consumer expectations (tangible reliability responsiveness assurance empathy)

3 High service quality ndash extended marketing mix4 Service market strategies ndash TMRMCRM5 Service marketing principle ndash KAM (Pareto principle

20 - 80 policy (different loyalty schemes)6 Service marketing activities ndash direct marketing direct

mail campaign building the database telemarketing web technology

Marketing tactics -Using 7rsquoP

1 Product core improvedaugmented 2 Place intensive selective exclusive3 Price penetration skimming strategy4 Promotion publicity PR campaign5 Physical evidence service delivery clean logo Design and

comfort Smart staff uniforms and name badgesAtmosphere Give service delivery exceeded customer expectations

6 Process service delivered with quality and consistency ndash 24 hours open keep the promise Give easy payment options-online information Have a good queuing systemimplement clear procedures ndash focus on health amp safety issues

7 People brand loyalty continues employee training financial incentives and rewardsstandardized customer service internal company news letter

Implementation

1 Action plan

2 Budget setting (4 methods)

Control

Balance score card KPIrsquos measures Marketing plan evaluation methods

Elective2 -MP task 2 answer plan ( branding and NPD)

Put the NPD process and explain each steps how its work for the selected company

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Ansoff matrix

BCG Matrix

BCG in ndashclothing business -next

Stars Embellished Jeans and Premium Jeans Both these newer lines are proving to be bestsellers this is

good news for Next The Premium Jeans have proved to be a very successful trial of the market for Next they are a higher priced (up to 60 pounds) jean and premium jean has commanded a high degree of branding to inform customers of its benefits

Question Marks Skinny Jeans Many fashion styles are Question Marks Skinny Jeans are a current trend Next have much competition in Fast Fashion as the market is saturated and they do not offer the cheaper price

GE Matrix

Cash Cows Core Jeans Contemporary Jeans Summer Crops Belted Jeans Slouch Jeans amp Utility JeansThese lines are normally all featured in weekly bestsellers and are a lsquoreliable betrsquo for large buys allowing economies of scale to be strong and command good cost prices These styles tend to be similar from season to season with slight design update to keep sales and customers interested

Dogs Classic Styles Denim skirts (Old Style) Embellished Jeans Trinket Jeans amp Lightweight JeansThese lines are all poor sellers and are continued by Next as they feel it is important to cater for this small market who want these products (especially classic lines) and also for visual purposes in store and in customers minds

Porterrsquos generic strategy

x

Cost leader

Focus Differentiator

GE Matrix

Porterrsquos 5 forces

Potential entrants

Suppliers

Substitutes

Buyers

Bargaining power of

suppliers

Threat of substitute products or services

Bargaining power of

buyers

Threat of new entrants

Industry competitionIntense ifNumerous of similar sized competitionsSlow industry growthHigh fixed costsLack of differentiationDiverse nature of competitorsHigh strategic stakesHigh exit barriersPowerful if

Few suppliersNo substitutesIndustry not important customer of supplier groupSupplier groups products are differentiatedThreat of forward integration

Powerful ifbullLarge proportion of sellerrsquos salesbullHigh proportion of the buyerrsquos costsbullUndifferentiated productbullLow buyer switching costsbullThreat of backward integrationbullSellerrsquos product not important to quality of buyerrsquos product

Barriers to entrybullEconomies of scalebullProduct differentiationbullCapital requirementsbullSwitching costsbullAccess to distribution channelsbullCost disadvantage additional to scalebullGovernment policybullEntry-deterring pricebullExperience

Adapted from Porter 1980

Service strategy

1 Elements of service intangibility permissibility inseparatability can not own can not store

2 Service quality model SERVQUAL model ndashused to understand consumer expectations (tangible reliability responsiveness assurance empathy)

3 High service quality ndash extended marketing mix4 Service market strategies ndash TMRMCRM5 Service marketing principle ndash KAM (Pareto principle

20 - 80 policy (different loyalty schemes)6 Service marketing activities ndash direct marketing direct

mail campaign building the database telemarketing web technology

Marketing tactics -Using 7rsquoP

1 Product core improvedaugmented 2 Place intensive selective exclusive3 Price penetration skimming strategy4 Promotion publicity PR campaign5 Physical evidence service delivery clean logo Design and

comfort Smart staff uniforms and name badgesAtmosphere Give service delivery exceeded customer expectations

6 Process service delivered with quality and consistency ndash 24 hours open keep the promise Give easy payment options-online information Have a good queuing systemimplement clear procedures ndash focus on health amp safety issues

7 People brand loyalty continues employee training financial incentives and rewardsstandardized customer service internal company news letter

Implementation

1 Action plan

2 Budget setting (4 methods)

Control

Balance score card KPIrsquos measures Marketing plan evaluation methods

Elective2 -MP task 2 answer plan ( branding and NPD)

Put the NPD process and explain each steps how its work for the selected company

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

BCG Matrix

BCG in ndashclothing business -next

Stars Embellished Jeans and Premium Jeans Both these newer lines are proving to be bestsellers this is

good news for Next The Premium Jeans have proved to be a very successful trial of the market for Next they are a higher priced (up to 60 pounds) jean and premium jean has commanded a high degree of branding to inform customers of its benefits

Question Marks Skinny Jeans Many fashion styles are Question Marks Skinny Jeans are a current trend Next have much competition in Fast Fashion as the market is saturated and they do not offer the cheaper price

GE Matrix

Cash Cows Core Jeans Contemporary Jeans Summer Crops Belted Jeans Slouch Jeans amp Utility JeansThese lines are normally all featured in weekly bestsellers and are a lsquoreliable betrsquo for large buys allowing economies of scale to be strong and command good cost prices These styles tend to be similar from season to season with slight design update to keep sales and customers interested

Dogs Classic Styles Denim skirts (Old Style) Embellished Jeans Trinket Jeans amp Lightweight JeansThese lines are all poor sellers and are continued by Next as they feel it is important to cater for this small market who want these products (especially classic lines) and also for visual purposes in store and in customers minds

Porterrsquos generic strategy

x

Cost leader

Focus Differentiator

GE Matrix

Porterrsquos 5 forces

Potential entrants

Suppliers

Substitutes

Buyers

Bargaining power of

suppliers

Threat of substitute products or services

Bargaining power of

buyers

Threat of new entrants

Industry competitionIntense ifNumerous of similar sized competitionsSlow industry growthHigh fixed costsLack of differentiationDiverse nature of competitorsHigh strategic stakesHigh exit barriersPowerful if

Few suppliersNo substitutesIndustry not important customer of supplier groupSupplier groups products are differentiatedThreat of forward integration

Powerful ifbullLarge proportion of sellerrsquos salesbullHigh proportion of the buyerrsquos costsbullUndifferentiated productbullLow buyer switching costsbullThreat of backward integrationbullSellerrsquos product not important to quality of buyerrsquos product

Barriers to entrybullEconomies of scalebullProduct differentiationbullCapital requirementsbullSwitching costsbullAccess to distribution channelsbullCost disadvantage additional to scalebullGovernment policybullEntry-deterring pricebullExperience

Adapted from Porter 1980

Service strategy

1 Elements of service intangibility permissibility inseparatability can not own can not store

2 Service quality model SERVQUAL model ndashused to understand consumer expectations (tangible reliability responsiveness assurance empathy)

3 High service quality ndash extended marketing mix4 Service market strategies ndash TMRMCRM5 Service marketing principle ndash KAM (Pareto principle

20 - 80 policy (different loyalty schemes)6 Service marketing activities ndash direct marketing direct

mail campaign building the database telemarketing web technology

Marketing tactics -Using 7rsquoP

1 Product core improvedaugmented 2 Place intensive selective exclusive3 Price penetration skimming strategy4 Promotion publicity PR campaign5 Physical evidence service delivery clean logo Design and

comfort Smart staff uniforms and name badgesAtmosphere Give service delivery exceeded customer expectations

6 Process service delivered with quality and consistency ndash 24 hours open keep the promise Give easy payment options-online information Have a good queuing systemimplement clear procedures ndash focus on health amp safety issues

7 People brand loyalty continues employee training financial incentives and rewardsstandardized customer service internal company news letter

Implementation

1 Action plan

2 Budget setting (4 methods)

Control

Balance score card KPIrsquos measures Marketing plan evaluation methods

Elective2 -MP task 2 answer plan ( branding and NPD)

Put the NPD process and explain each steps how its work for the selected company

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

BCG in ndashclothing business -next

Stars Embellished Jeans and Premium Jeans Both these newer lines are proving to be bestsellers this is

good news for Next The Premium Jeans have proved to be a very successful trial of the market for Next they are a higher priced (up to 60 pounds) jean and premium jean has commanded a high degree of branding to inform customers of its benefits

Question Marks Skinny Jeans Many fashion styles are Question Marks Skinny Jeans are a current trend Next have much competition in Fast Fashion as the market is saturated and they do not offer the cheaper price

GE Matrix

Cash Cows Core Jeans Contemporary Jeans Summer Crops Belted Jeans Slouch Jeans amp Utility JeansThese lines are normally all featured in weekly bestsellers and are a lsquoreliable betrsquo for large buys allowing economies of scale to be strong and command good cost prices These styles tend to be similar from season to season with slight design update to keep sales and customers interested

Dogs Classic Styles Denim skirts (Old Style) Embellished Jeans Trinket Jeans amp Lightweight JeansThese lines are all poor sellers and are continued by Next as they feel it is important to cater for this small market who want these products (especially classic lines) and also for visual purposes in store and in customers minds

Porterrsquos generic strategy

x

Cost leader

Focus Differentiator

GE Matrix

Porterrsquos 5 forces

Potential entrants

Suppliers

Substitutes

Buyers

Bargaining power of

suppliers

Threat of substitute products or services

Bargaining power of

buyers

Threat of new entrants

Industry competitionIntense ifNumerous of similar sized competitionsSlow industry growthHigh fixed costsLack of differentiationDiverse nature of competitorsHigh strategic stakesHigh exit barriersPowerful if

Few suppliersNo substitutesIndustry not important customer of supplier groupSupplier groups products are differentiatedThreat of forward integration

Powerful ifbullLarge proportion of sellerrsquos salesbullHigh proportion of the buyerrsquos costsbullUndifferentiated productbullLow buyer switching costsbullThreat of backward integrationbullSellerrsquos product not important to quality of buyerrsquos product

Barriers to entrybullEconomies of scalebullProduct differentiationbullCapital requirementsbullSwitching costsbullAccess to distribution channelsbullCost disadvantage additional to scalebullGovernment policybullEntry-deterring pricebullExperience

Adapted from Porter 1980

Service strategy

1 Elements of service intangibility permissibility inseparatability can not own can not store

2 Service quality model SERVQUAL model ndashused to understand consumer expectations (tangible reliability responsiveness assurance empathy)

3 High service quality ndash extended marketing mix4 Service market strategies ndash TMRMCRM5 Service marketing principle ndash KAM (Pareto principle

20 - 80 policy (different loyalty schemes)6 Service marketing activities ndash direct marketing direct

mail campaign building the database telemarketing web technology

Marketing tactics -Using 7rsquoP

1 Product core improvedaugmented 2 Place intensive selective exclusive3 Price penetration skimming strategy4 Promotion publicity PR campaign5 Physical evidence service delivery clean logo Design and

comfort Smart staff uniforms and name badgesAtmosphere Give service delivery exceeded customer expectations

6 Process service delivered with quality and consistency ndash 24 hours open keep the promise Give easy payment options-online information Have a good queuing systemimplement clear procedures ndash focus on health amp safety issues

7 People brand loyalty continues employee training financial incentives and rewardsstandardized customer service internal company news letter

Implementation

1 Action plan

2 Budget setting (4 methods)

Control

Balance score card KPIrsquos measures Marketing plan evaluation methods

Elective2 -MP task 2 answer plan ( branding and NPD)

Put the NPD process and explain each steps how its work for the selected company

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

GE Matrix

Cash Cows Core Jeans Contemporary Jeans Summer Crops Belted Jeans Slouch Jeans amp Utility JeansThese lines are normally all featured in weekly bestsellers and are a lsquoreliable betrsquo for large buys allowing economies of scale to be strong and command good cost prices These styles tend to be similar from season to season with slight design update to keep sales and customers interested

Dogs Classic Styles Denim skirts (Old Style) Embellished Jeans Trinket Jeans amp Lightweight JeansThese lines are all poor sellers and are continued by Next as they feel it is important to cater for this small market who want these products (especially classic lines) and also for visual purposes in store and in customers minds

Porterrsquos generic strategy

x

Cost leader

Focus Differentiator

GE Matrix

Porterrsquos 5 forces

Potential entrants

Suppliers

Substitutes

Buyers

Bargaining power of

suppliers

Threat of substitute products or services

Bargaining power of

buyers

Threat of new entrants

Industry competitionIntense ifNumerous of similar sized competitionsSlow industry growthHigh fixed costsLack of differentiationDiverse nature of competitorsHigh strategic stakesHigh exit barriersPowerful if

Few suppliersNo substitutesIndustry not important customer of supplier groupSupplier groups products are differentiatedThreat of forward integration

Powerful ifbullLarge proportion of sellerrsquos salesbullHigh proportion of the buyerrsquos costsbullUndifferentiated productbullLow buyer switching costsbullThreat of backward integrationbullSellerrsquos product not important to quality of buyerrsquos product

Barriers to entrybullEconomies of scalebullProduct differentiationbullCapital requirementsbullSwitching costsbullAccess to distribution channelsbullCost disadvantage additional to scalebullGovernment policybullEntry-deterring pricebullExperience

Adapted from Porter 1980

Service strategy

1 Elements of service intangibility permissibility inseparatability can not own can not store

2 Service quality model SERVQUAL model ndashused to understand consumer expectations (tangible reliability responsiveness assurance empathy)

3 High service quality ndash extended marketing mix4 Service market strategies ndash TMRMCRM5 Service marketing principle ndash KAM (Pareto principle

20 - 80 policy (different loyalty schemes)6 Service marketing activities ndash direct marketing direct

mail campaign building the database telemarketing web technology

Marketing tactics -Using 7rsquoP

1 Product core improvedaugmented 2 Place intensive selective exclusive3 Price penetration skimming strategy4 Promotion publicity PR campaign5 Physical evidence service delivery clean logo Design and

comfort Smart staff uniforms and name badgesAtmosphere Give service delivery exceeded customer expectations

6 Process service delivered with quality and consistency ndash 24 hours open keep the promise Give easy payment options-online information Have a good queuing systemimplement clear procedures ndash focus on health amp safety issues

7 People brand loyalty continues employee training financial incentives and rewardsstandardized customer service internal company news letter

Implementation

1 Action plan

2 Budget setting (4 methods)

Control

Balance score card KPIrsquos measures Marketing plan evaluation methods

Elective2 -MP task 2 answer plan ( branding and NPD)

Put the NPD process and explain each steps how its work for the selected company

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Porterrsquos generic strategy

x

Cost leader

Focus Differentiator

GE Matrix

Porterrsquos 5 forces

Potential entrants

Suppliers

Substitutes

Buyers

Bargaining power of

suppliers

Threat of substitute products or services

Bargaining power of

buyers

Threat of new entrants

Industry competitionIntense ifNumerous of similar sized competitionsSlow industry growthHigh fixed costsLack of differentiationDiverse nature of competitorsHigh strategic stakesHigh exit barriersPowerful if

Few suppliersNo substitutesIndustry not important customer of supplier groupSupplier groups products are differentiatedThreat of forward integration

Powerful ifbullLarge proportion of sellerrsquos salesbullHigh proportion of the buyerrsquos costsbullUndifferentiated productbullLow buyer switching costsbullThreat of backward integrationbullSellerrsquos product not important to quality of buyerrsquos product

Barriers to entrybullEconomies of scalebullProduct differentiationbullCapital requirementsbullSwitching costsbullAccess to distribution channelsbullCost disadvantage additional to scalebullGovernment policybullEntry-deterring pricebullExperience

Adapted from Porter 1980

Service strategy

1 Elements of service intangibility permissibility inseparatability can not own can not store

2 Service quality model SERVQUAL model ndashused to understand consumer expectations (tangible reliability responsiveness assurance empathy)

3 High service quality ndash extended marketing mix4 Service market strategies ndash TMRMCRM5 Service marketing principle ndash KAM (Pareto principle

20 - 80 policy (different loyalty schemes)6 Service marketing activities ndash direct marketing direct

mail campaign building the database telemarketing web technology

Marketing tactics -Using 7rsquoP

1 Product core improvedaugmented 2 Place intensive selective exclusive3 Price penetration skimming strategy4 Promotion publicity PR campaign5 Physical evidence service delivery clean logo Design and

comfort Smart staff uniforms and name badgesAtmosphere Give service delivery exceeded customer expectations

6 Process service delivered with quality and consistency ndash 24 hours open keep the promise Give easy payment options-online information Have a good queuing systemimplement clear procedures ndash focus on health amp safety issues

7 People brand loyalty continues employee training financial incentives and rewardsstandardized customer service internal company news letter

Implementation

1 Action plan

2 Budget setting (4 methods)

Control

Balance score card KPIrsquos measures Marketing plan evaluation methods

Elective2 -MP task 2 answer plan ( branding and NPD)

Put the NPD process and explain each steps how its work for the selected company

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

GE Matrix

Porterrsquos 5 forces

Potential entrants

Suppliers

Substitutes

Buyers

Bargaining power of

suppliers

Threat of substitute products or services

Bargaining power of

buyers

Threat of new entrants

Industry competitionIntense ifNumerous of similar sized competitionsSlow industry growthHigh fixed costsLack of differentiationDiverse nature of competitorsHigh strategic stakesHigh exit barriersPowerful if

Few suppliersNo substitutesIndustry not important customer of supplier groupSupplier groups products are differentiatedThreat of forward integration

Powerful ifbullLarge proportion of sellerrsquos salesbullHigh proportion of the buyerrsquos costsbullUndifferentiated productbullLow buyer switching costsbullThreat of backward integrationbullSellerrsquos product not important to quality of buyerrsquos product

Barriers to entrybullEconomies of scalebullProduct differentiationbullCapital requirementsbullSwitching costsbullAccess to distribution channelsbullCost disadvantage additional to scalebullGovernment policybullEntry-deterring pricebullExperience

Adapted from Porter 1980

Service strategy

1 Elements of service intangibility permissibility inseparatability can not own can not store

2 Service quality model SERVQUAL model ndashused to understand consumer expectations (tangible reliability responsiveness assurance empathy)

3 High service quality ndash extended marketing mix4 Service market strategies ndash TMRMCRM5 Service marketing principle ndash KAM (Pareto principle

20 - 80 policy (different loyalty schemes)6 Service marketing activities ndash direct marketing direct

mail campaign building the database telemarketing web technology

Marketing tactics -Using 7rsquoP

1 Product core improvedaugmented 2 Place intensive selective exclusive3 Price penetration skimming strategy4 Promotion publicity PR campaign5 Physical evidence service delivery clean logo Design and

comfort Smart staff uniforms and name badgesAtmosphere Give service delivery exceeded customer expectations

6 Process service delivered with quality and consistency ndash 24 hours open keep the promise Give easy payment options-online information Have a good queuing systemimplement clear procedures ndash focus on health amp safety issues

7 People brand loyalty continues employee training financial incentives and rewardsstandardized customer service internal company news letter

Implementation

1 Action plan

2 Budget setting (4 methods)

Control

Balance score card KPIrsquos measures Marketing plan evaluation methods

Elective2 -MP task 2 answer plan ( branding and NPD)

Put the NPD process and explain each steps how its work for the selected company

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Porterrsquos 5 forces

Potential entrants

Suppliers

Substitutes

Buyers

Bargaining power of

suppliers

Threat of substitute products or services

Bargaining power of

buyers

Threat of new entrants

Industry competitionIntense ifNumerous of similar sized competitionsSlow industry growthHigh fixed costsLack of differentiationDiverse nature of competitorsHigh strategic stakesHigh exit barriersPowerful if

Few suppliersNo substitutesIndustry not important customer of supplier groupSupplier groups products are differentiatedThreat of forward integration

Powerful ifbullLarge proportion of sellerrsquos salesbullHigh proportion of the buyerrsquos costsbullUndifferentiated productbullLow buyer switching costsbullThreat of backward integrationbullSellerrsquos product not important to quality of buyerrsquos product

Barriers to entrybullEconomies of scalebullProduct differentiationbullCapital requirementsbullSwitching costsbullAccess to distribution channelsbullCost disadvantage additional to scalebullGovernment policybullEntry-deterring pricebullExperience

Adapted from Porter 1980

Service strategy

1 Elements of service intangibility permissibility inseparatability can not own can not store

2 Service quality model SERVQUAL model ndashused to understand consumer expectations (tangible reliability responsiveness assurance empathy)

3 High service quality ndash extended marketing mix4 Service market strategies ndash TMRMCRM5 Service marketing principle ndash KAM (Pareto principle

20 - 80 policy (different loyalty schemes)6 Service marketing activities ndash direct marketing direct

mail campaign building the database telemarketing web technology

Marketing tactics -Using 7rsquoP

1 Product core improvedaugmented 2 Place intensive selective exclusive3 Price penetration skimming strategy4 Promotion publicity PR campaign5 Physical evidence service delivery clean logo Design and

comfort Smart staff uniforms and name badgesAtmosphere Give service delivery exceeded customer expectations

6 Process service delivered with quality and consistency ndash 24 hours open keep the promise Give easy payment options-online information Have a good queuing systemimplement clear procedures ndash focus on health amp safety issues

7 People brand loyalty continues employee training financial incentives and rewardsstandardized customer service internal company news letter

Implementation

1 Action plan

2 Budget setting (4 methods)

Control

Balance score card KPIrsquos measures Marketing plan evaluation methods

Elective2 -MP task 2 answer plan ( branding and NPD)

Put the NPD process and explain each steps how its work for the selected company

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Service strategy

1 Elements of service intangibility permissibility inseparatability can not own can not store

2 Service quality model SERVQUAL model ndashused to understand consumer expectations (tangible reliability responsiveness assurance empathy)

3 High service quality ndash extended marketing mix4 Service market strategies ndash TMRMCRM5 Service marketing principle ndash KAM (Pareto principle

20 - 80 policy (different loyalty schemes)6 Service marketing activities ndash direct marketing direct

mail campaign building the database telemarketing web technology

Marketing tactics -Using 7rsquoP

1 Product core improvedaugmented 2 Place intensive selective exclusive3 Price penetration skimming strategy4 Promotion publicity PR campaign5 Physical evidence service delivery clean logo Design and

comfort Smart staff uniforms and name badgesAtmosphere Give service delivery exceeded customer expectations

6 Process service delivered with quality and consistency ndash 24 hours open keep the promise Give easy payment options-online information Have a good queuing systemimplement clear procedures ndash focus on health amp safety issues

7 People brand loyalty continues employee training financial incentives and rewardsstandardized customer service internal company news letter

Implementation

1 Action plan

2 Budget setting (4 methods)

Control

Balance score card KPIrsquos measures Marketing plan evaluation methods

Elective2 -MP task 2 answer plan ( branding and NPD)

Put the NPD process and explain each steps how its work for the selected company

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Marketing tactics -Using 7rsquoP

1 Product core improvedaugmented 2 Place intensive selective exclusive3 Price penetration skimming strategy4 Promotion publicity PR campaign5 Physical evidence service delivery clean logo Design and

comfort Smart staff uniforms and name badgesAtmosphere Give service delivery exceeded customer expectations

6 Process service delivered with quality and consistency ndash 24 hours open keep the promise Give easy payment options-online information Have a good queuing systemimplement clear procedures ndash focus on health amp safety issues

7 People brand loyalty continues employee training financial incentives and rewardsstandardized customer service internal company news letter

Implementation

1 Action plan

2 Budget setting (4 methods)

Control

Balance score card KPIrsquos measures Marketing plan evaluation methods

Elective2 -MP task 2 answer plan ( branding and NPD)

Put the NPD process and explain each steps how its work for the selected company

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Implementation

1 Action plan

2 Budget setting (4 methods)

Control

Balance score card KPIrsquos measures Marketing plan evaluation methods

Elective2 -MP task 2 answer plan ( branding and NPD)

Put the NPD process and explain each steps how its work for the selected company

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Control

Balance score card KPIrsquos measures Marketing plan evaluation methods

Elective2 -MP task 2 answer plan ( branding and NPD)

Put the NPD process and explain each steps how its work for the selected company

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Elective2 -MP task 2 answer plan ( branding and NPD)

Put the NPD process and explain each steps how its work for the selected company

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Importance of branding in NPD (use brand building block model )- theory

Brand strategies-multi-branding Brand building- brand building block Why brand in NPD ndash 1 For differentiation amp recognition2 To add value to a naked commodity3 Easier to promote4 Helps market segmentation5 Can help boost share price6 Easier to integrate - sales promotion7 Personal selling amp packaging8 Can help corporate image

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Branding implications for the selected companys marketing mix decisions (how the 7P s can be used for effective branding)

Product ndash core expectedaugmentedperception Place ndashexclusiveintensiveselective Price ndashSkimmimgpenetration pricing method Promotion ndashSales promo Direct marketingsponsorshipcelebritypersonal selling

advertising People ndashcontinues employee training financial incentives and rewardsstandardized

customer service internal marketing-company news letterknowledge and trained staffs Process- easy payment options-online Information kiosks oyster machines Have a

good ordering systemimplement clear procedures ndash focus on health amp safety issues Physical evidence -Design and comfort Smart staff uniforms and name

badgesAtmosphere and design Give service delivery exceeded customer

expectations

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

How to maintain and manage the brands effectively

Write as group

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Newsletter for internal audience about the NPD and branding Write as group

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

MP task 3 answer plan (Budget airline)

Growth of the budget airline industry -

Write in bullet points ndashGroup wortk

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Three macro and micro environmental issues - 3 macro and 3 micro (put in bullet points)

Marco EnvironmentIs defined by Dibbs et al (2000) as the ldquobroader forces affecting all organisations in a marketrdquo Pg 59 they are political economic socio-cultural technological environmental and legal forces

Political Decisions in the political environment affect marketing decisions This

environment is made up laws government agencies and pressure groups The International Centre for Consumer Issues and Advocacy (ICCIA) reveal that at present consumer protection laws are practically non-existent in a selected country can afford the company not to have a returns policy but consumer pressure groups are building How to resolve

Company should make arrangements to have facilities in place to deal with customer complaints pressure group issues

Getting tax benefits from government will help the company to compete even better with its competitors

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Economic Selected countryrsquos economy is in the recovery stage with inflation and interest

rates consistently dropping over the last couple of years Unemployment figures are also dropping though not by much An expectation of future employment and job security encourages consumers to spend Total disposable income is on the rise and cost of labour is low in the agricultural sector This level of growth in income has led to an increase in the demand for luxury products The average age of reaching middle management is now 22How to deal with this

Increase in disposable income means more people can afford and are willing to buy luxury brands hence opportunities for new market segments

The avg age of reaching middle management is 22 ndashMost people travel

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Socio-cultural National pride is on the rise families are becoming smaller than they

used to be averaging two kids per home this means a lot more disposable income to spend The population size of the 25 to 40 year old is on the decline How to deal this

Older people may travel more than the younger generation Single passenger segment

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

The Business This is made up of the companyrsquos internal environment

corporate goals values and beliefs The selected companyrsquos organisational structure is more of the functional type with tasks grouped into the different departments depending on similar expertise The departments include operations personnel finance and salesmarketing departments

The companyrsquos corporate objectives are to provide good service for better price and to retain the customer for long run

Marketing department deprives the company of utilising its resources to satisfy its customers

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Micro Environment The micro environment is defined by Dibbs

et al as being ldquomade up of the more company-specific forces reflecting the nature of the business its suppliers marketing intermediaries buyers all types of competitors- direct substitute and new entrant- and its publicsrdquo

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Suppliers These are the people who provide goods and

services essential for the production of the companyrsquos products Two main supplier for airline ndashBoeing Airbus

Sourcing from 2 suppliers could potentially lead to the supplier having a better bargaining power

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Buyers Customers are the focal point of the marketing

concept and thus their needs should be analysed and served on an ongoing basis There has been increased demand in the last couple of months for cheaper price and frequent flights

Build up a loyalty towards the brand Database marketing

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Competitors Not only must new entrants be monitored but also

substitute products These could very much erode a companyrsquos market share

For airline direct competitors include multinational brands like local brands and all are competing on price

Substitute products include other mode of transport

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Key sources of information to do the marketing audit (put in bullet points)

The marketing audit should cover 1048707 marketing environment 1048707 marketing strategy 1048707 marketing organization 1048707 marketing systems 1048707 marketing productivity 1048707 marketing functions

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Internal Audit tools 1 Annual report

2 Sales Performance report

3 HR training manual

4 Financial performance report

5 Balance sheet profit amp loss account

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

External Audit

1 Central Bank report

2 Directories

3 Trade Journals

4 Magazines

5 Government reports

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

How airline can use STP to segment their customers

Define what is STP Segment the customer group by using the variables Target the particular one segment Position the airline by using the perception map ndashfor the selected

segment

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Perception Map- explain in bullet points

High Quality

Low Quality

High PriceLow Price

CR

LC

N

O

A

CR Chocolate RepublicC CadburysN Nestle

L LindtO OmanheneA Akuafo

Positional Mapping

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

How the pricing (marketing mix element) can be use in Airline industry -show with example

Explain the importance of pricing mix Factors affecting pricing decision Internal factors - Marketing objectives Useage of other marketing mix elements Costs Organisation for pricingExternal factors - Nature of market ampdemand Competition Other environmental Factors- SLEPT

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Pricing mix strategies1 Product-line pricing - setting price steps between products in a

product line

2 Optional product pricing - accessory products sold with main product

3 Captive product pricing - product must be used with a main product

4 By-product pricing - products produced as part of the process involved in producing another product

5 Product-bundle pricing - combining several products and setting a discounted price

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Setting price example

For airline industry

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

MP task 4 answer plan (Internal marketing audit )

An assessment of the selected companys internal marketing environment - (internal marketing audit) Corporate objectives

(over 3 years)

DivisionalBusiness unit objectives(over 3 years)

Operational objectives (1-3 years)

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Internal Environment The final and most important stage of the audit is the internal analysis According to Drummond and Ensor (2001)

lsquoBefore an organisation can begin to review its strategic options it has to evaluate the enterprises current and potential capabilities have to be identified and this can be achieved by evaluating the assets and competencies that make up the companyrsquos resources Once this has been done an organisation can begin to develop a competitive position that matches organisational capabilities to the needs of the consumers in market sectors identifiedhellip lsquo

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Shared values Employees share the same values and these act as Values act as an

organisations conscience providing guidance in times of crisis Legal and General have a value system which is communicate din the extranet

Style Style refers to the employees shared and common way of thinking and

behaving unwritten norms of behaviour and thought Organisational Culture - The culture within Legal amp General is very professional yet there is also an emphasis on community responsibility There are numerous lsquodress downrsquo days and opportunities for people to get involved in the company and the community by participating in charity fun runs and charity events

Structure The policies and procedures which govern the way in which the organisation

acts within itself and within its environment LampG has a hierarchical structure ndash this impacts the business customers and the employees

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Skills and staff Training and Development - ensuring people know how to do their jobs and stay up to date

with the latest techniques Staff means that the company has hired able people trained them well and assigned them

to the right jobs All staff attend training workshops these training sessions provide LampG staff with the skills to do their job to carry out the companies strategy

Systems The decision making systems within the organisation can range from management

intuition to structured computer systems to complex expert systems and artificial intelligence At LampG it includes

Operational Systems - these are company wide ndash such as the new business system or the literature processing system These systems ease the processes for employees taking away confusion from processes and increasing efficiency due to the pre population of some forms and documents and ample information

Strategy The integrated vision and direction of the company as well as the manner in which it

derives articulates communicates and implements that vision and direction The strategy development processes at Legal amp General are particular to each channel and area for Direct Marketing the strategy is developed by senior marketing who are constrained by the budget set by finance senior management

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Appraisal of 2 techniques that can be use in the internal environment - Balance score card Value chain

Balance score card

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Value chain

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Explaining the concept of the planning gaprsquo

1 Define what is gap analysis 2 Explain the 4 gaps Operational Financial Production Integrative

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Discussion of the impact of gap analysis on operational marketing decision in your selected company

Ansoffrsquos growth matrix below considers four different combinations of products and markets each different combination can be used to formulate a growth strategy

Market Penetration The selected company currently uses this strategy to increase sales of

existing products to existing markets which dictates the marketing mix as competitive pricing and sales promotions are used to achieve this Persuading existing customers to buy existing products is low risk however it can be limiting in terms of potential as the market is becoming increasingly saturated Competitive intensity is therefore high and customers have many more options

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Market Development With this strategy the company would aim to increase market share by selling

existing products to new markets Products can be sold in different geographic regions or to new market segments to achieve this lsquoAn aggressive marketing drive via factors such as competitive pricing sales promotion or advertisingrsquo can be used to win customers over from the competition Again this strategy is fairly low risk however it is timely as it takes a long time to build customer loyalty and trust

Product Development This involves revamping and update products for existing markets It is

essential that organisation maintain a balanced product portfolio between new and existing products in order that they move with the times and meet customers increasingly challenging expectations The high investment required can put a financial strain on the company especially if the strategy is not successful hence the greater risk

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Diversification This involves moving beyond existing area of operation and

actively seeking involvement in unfamiliar activitiesrsquo This can be related to completely unrelated products Unrelated diversification poses the greater risk Although potentially very profitable high investment is required here and the threat of new entrants is also high

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Retaining customers through1 Key account management

2 Reducing staff churn

3 Improving customer database to facilitate customised promotions

4 Offering free trialling of products

5 Improving the value through supply chain

6 Reducing involvement with products that can be easily copied by competitors

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units

Appendixrsquos

1 Company profile

2 Success history

3 Productservices

4 Markets operates

5 Sales from each sub business units