BSBMKG501

IDENTIFY AND EVALUATE MARKETING OPPORTUNITIES

PRESENTATION 1

PRESENTATION OUTLINE
At the end of this presentation you will know about:

Identifying marketing opportunities

Marketing terms and considerations to start:

Value, customer satisfaction, exchange and transaction

What are markets?

The marketing mix

Analyse information on market and business needs to identify marketing

opportunities

Research potential new markets and assess opportunities to enter, shape or

influence the market in terms of likely contribution to the business

Explore entrepreneurial, innovative approaches and creative ideas for business

application

Develop ideas into potential marketing opportunities

MARKETING
The purpose of marketing is to create, communicate and deliver value to
customers, and for that value to also benefit the business, and everyone interested
in the business.

Marketing is a social science related to why humans behave the way do

Work with or modify that behaviour to make a profit for our business

What makes people purchase goods? To answer this question you need to
undertake these steps:

Ask a question

Do background
research

Construct a
hypothesis

Test your
hypothesis by
doing an
experiment

Analyse your
data and draw a
conclusion

Communicate
your results

PRINCIPLES OF MARKETING
In general we could consider the following to be the principles of marketing:

Clarify your business objectives

Use innovation and creativity to know and understand:

Your target group and your customers behaviour

Your USP (unique selling proposition) unless you can do this you cannot
target your marketing properly and effectively - understand what makes
your business or product different or unique

The business purpose

The market needs and how they will access your product, company and
brand

Segment your customers, where do they belong, what matters to them?

Know your consumer buying behaviour successful brands encourage the

participation of their customers

WHAT IS VALUE?
Each person values something different. Dont make assumptions about customers
values. According to Kotler et. al., value is generally determined by a customers:
Needs - a state of felt deprivation. When you are not having a need met, you
will try to either reduce the need, or look for something to fill that need
Wants - the form taken by human needs as they are shaped, how people
choose to fill their needs

Demands - human wants backed by buying power, the product or service the
customer thinks provides them the best possible value they can afford
Consumers make buying choices based on perceptions of the value products
deliver. Customers usually act on perceived value whether or not it is this accurate.

Customer value is the difference between the value the customer gains from
owning and using a product and the cost of obtaining the product. This perception
of value can be changed by a number of forces, including the media, marketing,
peer opinion, trends, price etc.

CUSTOMER SATISFACTION
Depends on a products perceived performance in delivering value
relative to a buyers expectations:
What do buyers expect?
What was the perceived performance of the product?

How did these two compare?

If the performance is higher than the expectation, the customer is

satisfied - if not, they are dissatisfied

Satisfied customers make repeat purchases, and tend to tell

others about their good experience. Therefore, it is important to
match customer expectations with product performance

EXCHANGE AND TRANSACTION

Exchange
The act of obtaining desired object or service from someone by offering something
of value in return. Central to marketing, and requires a few important conditions:

Two parties must be involved

Each must have something of value to the other

Each must want to deal with the other

Each must be able to accept or reject the others offer

They must be able to communicate with each other

Transaction

The unit of measurement used in marketing

It is a trade of units of value between two parties

one party gives X to another party and gets Y in return

Not always involve money sometimes we exchange goods or services (barter)

WHAT ARE MARKETS?

A market is the set of all

the actual and potential
buyers of a product

Members of a market
share common needs or
wants

The size of a market will

depend on the number of
people who have a
particular need or want
and have the resources
and willingness to
exchange for them

When creating a marketing

campaign you would look
at these five market areas
before product launch:

Potential market - all the

people who could buy your
product
Available market - all the
people who can afford
your product

Qualified available market those who can legally buy

your product
Target market- people
your business is trying to
service with your product

Penetrated market
current customers

S.W.O.T ANALYSIS
Strengths, weaknesses, opportunities and threats is a method for
considering the pros and cons of a situation:

Internally we look at strengths and weaknesses (factors that

belong to the organisation)

Externally examine opportunities and threats (factors that belong

to the situation and environment)

This is a first step to developing a strategy for achieving specific

objectives and is useful for generating new ideas and
opportunities

THE PRODUCT LIFE CYCLE

Product Development
A strategy for promoting company growth by offering modified or new products to
current market segments is developed
Introduction
New product is first distributed and made available for purchase

Growth
If successful, sales will start climbing quickly. Growth amongst competitors,
distribution, profits etc. begin to grow
Maturity

Sales growth slows or levels off

Decline
Sales decline. Company must identify declining product and decide whether it
should be maintained, harvested or dropped

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PRICING: INTERNAL FACTORS

Marketing objectives

Price is often largely determined by the target market and

positioning for the product. The clearer a firm is about its
objectives, the easier it will be to set price

Marketing-mix strategy

Pricing decisions must be coordinated with product design,

distribution and promotion decisions to form a consistent and
effective marketing program

Costs

The company must cover all of its costs for producing, distributing
and selling the product, and also deliver a fair rate of return for its
effort and risk
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THE MARKETING MIX

the set of controllable marketing variables the company blends to produce the
response it wants in the target market. Kotler et al (2007)

It refers to the various elements making up the practice of marketing in its totality. Often
referred to as the Four Ps:

Product - Quality and features. Why do your customers need what you are selling?
What are the perceived benefits of your product? Product is a good service, idea,
place or person - whatever is for sale whatever we are selling. Considered to include
core - benefits the product offers the customer, actual which is the physical product
and augmented the whole package including warranty, delivery and after sales
options for example

Price - List price, discounts, allowances etc. what will make them part with their
money? What the customer is willing to exchange for the product that they want.
Consider price as well as all the costs, time, social, lifestyle for example

Place - Retailers, locations, warehousing where do your customers go to fulfil their

needs? How available is the product to your customers? This relates to channels of
distribution as well as actual places the product is available from

Promotion - Advertising, personal selling, sales promotions. All activities, actions

taken to let customers know about the product benefits and how this product fits
their needs

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THE MARKETING MIX

The extended marketing mix
In recent years, the marketing
mix has been extended to
include people, process and
physical evidence. This is largely
as a result of the marketing of
services:

People: important
particularly in the marketing
of services
Process: customers migrate
to other service providers
when the process is not
providing customer value

Process
Product

Place

Physical
evidence

People

Price

Target
market
intended
position

Promotion

Physical evidence: entails

examining every aspect that
customers use in their
perceptual field to assess
such a service

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ETHICS AND REGULATION IN MARKETING

Marketing imposes a great deal of influence on the social landscape. The
onus is on you to behave in a responsible way to use your power wisely.
Your decision as a business owner or operating in business is to be
ethical and to do the right thing, always. You cannot use your position to
disadvantage any person or group of people.
Good ethical practice involves providing accurate and balanced
information, fair prices to encourage competition and reasonable
inclusive behaviour.
There are a range of ethical and legal boundaries in the Australian
marketing landscapes. Ethical issues include:

Unfair pricing

Financial
responsibility and
accountability

Planned
obsolescence and
deceptive
practices

Globalisation

Consumerism

Corporate social
responsibility

Environmentalism

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LAW AND REGULATION IN MARKETING

Marketing is governed by various legislation and peak body
regulations:
Australian Consumer
Law 2011

Competition and
Consumer Act 2010
- commonwealth law
formerly Trade
Practices 1974

Fair Trading Acts

Privacy laws

Protection of
Intellectual
Property,
Trademarks and
Copyright

Australian
Competition and
Consumer
Commission (ACCC)

Australian
Communication and
Media Authority
(ACMA) Do Not Call
Register

Australian
Advertising
Standards Bureau
(ASB)

ACMA Australian emarketing Code of

Practice

Australian Direct
Marketing
Association (ADMA)
Code of Practice

Australian Marketing
Institute (AMI) Code
of Conduct

Australian
Association of
National Advertisers
(AANA) Code of
Ethics

Australian and New

Zealand Standard
Industrial
Classification

Anti-Discrimination
Act

National
Classification
Scheme

SPAM Act enforced

by ACMA

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LAW AND REGULATION IN MARKETING

Advertising media is regulated by internal and external bodies:

Internal regulators

External regulators

Australian Publishers
Bureau (APB)
Australian Association of
National Advertisers (AANA)
Advertising Federation of
Australia (AFA)
Federation of Australian
Radio Broadcasters (FARB)
Commercial Television
Industry Code of Practice

Australian Competition and

Consumer Commission
(ACCC)
Competition and Consumer
Act 2010 (replaces Trade
Practices Act 1974)
Privacy Legislation
Australian Communication
and Media Authority (ACMA)

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MARKETING OPPORTUNITIES

The aim of marketing is to attract customers

Good information is the foundation for good marketing

In the real world, marketers collect and analyse data to

understand the requirements of their markets and find products to
match them

Finding new markets can provide opportunities to improve sales

volume, growth, market share and profitability

Before entering a new market, thorough research must be done to

balance potential advantages against risks in entering the new
market

New markets can be similar to, or radically different from the

existing market the organisation currently operates in
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MARKETING OPPORTUNITIES

Organisations seeking to penetrate new markets must first define the

market and research its characteristics

They must then find new or existing products which match the
requirements of this market

Alternatively, an organisation can start with a product and find new

markets for it

Organisations sometimes create new opportunities by entering a

market with deliberate intentions of changing it.

E.g. Apple introduced the iPad into the personal computer market with
the intention of changing the market

An organisation will only make the decision to enter new markets if

the benefits outweigh the risk, a risk versus benefit analysis must be
part of any research into a new market

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INNOVATION

Entrepreneurs have ideas and see opportunities which they

develop into businesses

Anyone can adopt an entrepreneurial approach to their marketing

by developing their ideas and being alert for new opportunities

For Example:

In 1938 Heublein purchased the U.S. rights to Smirnoff vodka

At that time, sales were slow until they changed the product to
use whiskey corks

In Kentucky, sales rocketed as the distributor started marketing

Smirnoff as white whiskey, no taste, no smell

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INNOVATION
Entrepreneurial ideas come from creative thinking.

Generating entrepreneurial ideas can come from a range of activities:

Brainstorming, mind mapping and other idea generation
techniques

Looking at an organisations competitors

What are they trying to achieve, and how can we do it better?

Customers, sales representatives, other personnel and

suppliers
These and other sources foster ideas that have the potential to be
turned into marketing opportunities.
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INNOVATION
Once an organisation has explored entrepreneurial, innovative ideas it must then
develop them into marketing opportunities. This requires them to:

Identify the market and its requirements

Specify the product if a new product is being developed

Plan the marketing campaign

Test the marketing plan

Refine the marketing plan

Implement the marketing plan

What is a marketing plan? A written plan to describe and direct the marketing
activities of the organisation. It is a road map that helps business decide where
they are, where they want to go and how they will get there. It helps clarify how to
appeal to your audience and what they need. It can include strategies, budgets and
goals.

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PRESENTATION SUMMARY
Now that you have completed this presentation you will know about:

Identifying marketing opportunities

Marketing terms and considerations to start:

Value, customer satisfaction, exchange and transaction

What are markets?

The marketing mix

Analyse information on market and business needs to identify marketing

opportunities

Research potential new markets and assess opportunities to enter, shape or

influence the market in terms of likely contribution to the business

Explore entrepreneurial, innovative approaches and creative ideas for business

application

Develop ideas into potential marketing opportuniti

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