UNIT REVISION:UNIT REVISION:tips and guidance tips and guidance for the examfor the exam

Lecture 11Karen Knibbs

Marketing Practice – U14210

Learning objectives

2

By the end of this session students should be able to:-

Understand the format of the exam Reminder of key learning points

Revision tips! Identify sources of further help /

information for revision

Date: Wednesday 18th May 16:00-17:30 – be there early!

Exam format

Choose 2 essay questions from a choice of 5 questions

1 ½ hours Exam mark accounts for

60% of the final mark for the unit as a whole+ 40% from assessed

presentations

3

Get more marks by:• Write answer plans in notes first• Apply any relevant theory/models• Use as many examples from companies to illustrate your answer as much as possible

What we’ve covered this semester…

4

New Definition of Marketing?

“The strategic business function that creates value by stimulating, facilitating and fulfilling customer demand. It does this by building brands, nurturing innovation, developing relationships, creating good customer service and communicating benefits. By operating customer-centrically, marketing brings positive return on investment, satisfies shareholders and stakeholders from business and the community, and contributes to positive behavioural change and a sustainable business future.’” Charles (2007)

New elements of “definition” Creating value Building brands Nurturing innovation Developing relationships Good customer service Communicating benefits ROI and shareholder

value Stakeholders Sustainability

Broad Areas of Change & Developments

Marketing now not a management function Expansion of marketing into new areas – e.g. e-

commerce, social media, mobile apps, NFP, SME Increasing complexity of marketing roles Attitudes towards marketing Ethics, sustainability , consumerism , CSR and social

aspects• But some areas do not appear to be covered by the suggested

new definition: Services

Technology

Globalisation

MR definition summary

Market Research aims to describe and analyse markets (size, structure, growth etc)

Strictly speaking, Marketing Research is broader than Market Research

Marketing Research covers a much broader range of topics - customers, products, competitors, channels, suppliers etc

Current marketing situation or AUDIT

Should include:Market situationCompetitive situationMacro environment situation

• (PESTLE)Product situationPrice situationPromotion situationPlace (distribution) situation

Internal

External

Internal

&

External

Situation AuditExternal Factors

Macro Environment

Political

Economic

Social/Cultural

Technological

Legal

Environmental (CSR/Green/Ethics)

Micro Environment

Competitors

Suppliers

Distributors

Customers/Market Trends

Internal Factors

Position

Financial Situation

Market Position

Operations

Marketing Research

Products

Pricing

Selling and Distribution

Advertising and Sales Promotion

Capability

Organizational Structure

Management and Workforce

Capability for ChangeAsk yourself: what

other tools might a

company use other than

SWOT to analyse their

environment?

Balanced Scorecard

10 Kaplan & Norton, (1992)

Customer Orientation and CRM

Move to customer orientation has lead to a need to understand customer’s needs better

Improvements in technology have driven organisations’ ability to gain and hold more

information about consumers

Combined together, these have lead to the growth of Customer Relationship Management (CRM)

Role of CRM

To identify those customers that are most valuable to the organisation

To segment the organisation’s customers in the most useful way, e.g., by demographics, needs, value

To retain the customers that are most valuable to the organisation

How CRM is Carried Out

Relationships are based on (among other things) knowledge of the other party, in this case the customer

For organisation this means building and applying a picture of your customers

Generally this means using direct marketing

Also known as; Database marketing Direct and database marketing Data driven marketing

Downside of CRM

Building a database is not always worthwhile, if; The product is a once in a lifetime or very long term

purchase, e.g. house Where there is little loyalty shown to the product Where the unit sale is very low, e.g., Heinz at Home Where the cost of gathering data is too high

Can be difficult to get everyone to be customer centred

Not all customers want a relationship with organisationsSometimes assumptions are false, e.g., sometimes loyal customers get more expensive to serve as they get more

demanding

Global information

Business globalisation is increasing the demand for accurate local and regional information on the new markets to be entered.

Research needs to cover everything from cultural issues to consumer behaviour and competitive activity.

15

Pros and Cons of Using Technology

New Entrants

Substitutes

BuyersSuppliers

Entry & Substitution Barriers Reduced:•Less need for physical assets•More difficult to protect adv.•New entrants in many industries•Easier substitution

Rivalry Increased:•Reduced differentiation•Increased price competition•Wider geographic market•Lower variable costs hence more discounting

Supplier Power Reduced:•Raises bargaining power over suppliers•Wider information available•Internet procurement gives equal market access

Buyer Power Increased:•Wider information available•Reduces switching costs•Bargaining power shifts to end users•Powerful channels eliminated

Industry

Rivalry

Porter (2001)

Technology and Marketing

Technology has affected marketing in a number of ways. For example;

Products Increasing speed, acceptance and expectation

of innovation

Promotion Increasing media fragmentation Increased opportunities for information

capture and manipulation

Technology and Marketing Place

New distribution channels

PriceNew technology becomes

cheaper and more accessible, both B2C and B2B

Use of technology allows prices of various offerings to be decreased

Brand Management

A brand “consists of any name, design, style, words, or symbols, singly or in combination, that distinguish one product from another in the eyes of the customer.” (Brassington & Pettitt, 2006, P.301)

Needs to be something that can’t easily be copied by competitors

This serves as a sensory stimuli, a cue for the audience to attach to their experiences of products

Brassington & Pettitt (2006)

Brand Management Terms

Trade Mark A brand name symbol or logo protected by law for

the owners sole use Trade Marks Act 1994 allows registration of

smells, sounds, product shapes and packaging

Includes Coca-Cola bottle, Toblerone Directline insurance Advert

Brand Mark The elements of visual identity made up of design

and symbols, not words Also protectable by law E.g., Lloyds TSB black horse, Apple’s apple

Brassington & Pettitt (2006)

Branding Strategy

Brand extension Using an established brand to introduce a new

product E.g., Mars ice cream, easyHotel

Sub-brand A type of brand extension linking a new brand with

an existing brand E.g., Diet Coke

Parent brand A brand that produces a brand extension

Family brand A parent brand with a number of extensions

Kotler & Keller, (2006)

Branding Strategy

Brand extensions can be divided into two broad types;

(Product) line extension Use parent brand to brand a new product aimed at a

new market segment within the product category already served by parent brand, such as through different flavours, etc..,

(Product) category extension Parent brand is used to enter a different product

category than the one already served

Kotler & Keller (2006)

Honda Impossible Dream

Rationale for planning

to develop systematic, long-term thinkingto create an organised approachto develop specificity & consistencyto get agreement from colleagues & support

from non-marketers• common goals and mutual benefits

to identify sources of competitive advantage

The Strategic Marketing Planning ProcessProcess

Adapted from Morgan (1991), cited in Baines et al, p317

Problems with planning

Companies become obsessed with the processprocess or technique rather than the actual content and delivery of the plan!!

Unreliable or insufficient market research data can make plans flawed from beginning! New companies

• too busy? Small companies

• not important/ no skills/ restrictive? Mature companies

• Unnecessary / cumbersome? Fast changing markets

• not useful / responsive? However all organisations should plan!

Influences Shaping Organisational Buying Behaviour

Baines, Fill & Page, (2008)

Characteristics of organisational markets (from Principles)

FewerFewer buyers LargerLarger buyers CloserCloser supplier-

customer relationshipsrelationships

Geographically Geographically concentratedconcentrated buyers

DerivedDerived demand InelasticInelastic demand

FluctuatingFluctuating demand Professional Professional purchasing SeveralSeveral buying

influences DirectDirect purchasing ReciprocityReciprocity Leasing / Contractual

Agreements

Summary of Differences

Consumers often: Purchase goods and

services alone, which meet individual or family needs

Buy on impulse or switch supplier with minimal processes

Experience minor irritation if supply fails

Accept the stated price

BusinessesBusinesses often: Purchase goods and

services, as part of a team, to meet specific business needs

Use formalised, lengthy purchasing policies and processes

Find switching supplier difficult

Experience major problems if supply fails

Negotiate on price

Further reading suggestions:

All chapters from core texts as per unit handbook

Additional recommended reading as per unit handbook

Previous lectures (files on victory) Further reading suggestions as per

previous lectures. Self-test section of student website

accompanying the core textbook.GOOD LUCK and

Thank you!!