Professional Documents
Culture Documents
Services marketing stress the intangible nature of the product, the need to
manage customer expectation, and levels of service quality.
The internal environment is uncontrollable and is the principal means, through its
resources base, by which an organization influences its strategy.
The internal environment concerns the resources, processes, and policies an organization
manages in order that it can attempt to achieve its goals. These elements can be
influenced directly by an organization.
The three processes are linked but over time, more attention is focused on each one
more than the others so that at the end of the process, greater effort is expended on
using knowledge gleaned from the external and competitive environments to formulate
strategy.
Values are more strongly held still and are linked to our conscience.
Market segmentation is the division of a market into different groups of customers with
distinctly similar needs and product/service requirements.
The second important part of the STP process is to determine which, if any, of the
segments uncovered should be targeted and made the focus of a comprehensive
marketing programme. Having segmented the market and determined the size and
potential of market segments and selected specific target markets, the third part of the
STP process is to position a brand within the target markets.
To segment business markets there are two main groups of interrelated variables used:
organizational characteristics and buyer characteristics.
with one strategy), differentiated (target different segments with different strategies),
concentrated or niche (only target one segment from many segments), and customized
target marketing (target individual customers with individual strategies).
The first concerns the physical attributes, the functionality and capability that a brand
offers, for example, a car’s engine specification, its design, and carbon emissions.
The second positioning element concerns the way in which a brand is communicated and
how consumers perceive the brand relative to other competing brands in the
marketplace. This element of communication is vitally important, as it is not what you do
to a product, it is what you do to the mind of a prospect (Ries and Trout, 1972) that
determines how a brand is really positioned in a market.
Illustrate how the use of perceptual maps can assist the positioning
process
To illustrate the use of perceptual maps in the positioning process an example of brand
management is used. We displayed the differing attributes of a selection of retailing
brands on a perceptual map. We discussed how these could illustrate the existing level of
differentiation between brands;
• indicate how our brand and competing brands are perceived in the
marketplace;
• provide insight into how a market operates; and
• reveal strengths and weaknesses that can assist strategic decisions about
how to differentiate the attributes that matter to customers and how to
compete more effectively in the market.
The perceptual maps and key market drivers for this market are presented.
As a result, branding helps consumers and organizations to buy and to sell products
easily, more efficiently, and relatively quickly.
Describe what culture is and explain how it can impact on the use
of marketing communications in international environments
Culture refers to the values, beliefs, ideas, customs, actions, and symbols that are
learned by members of particular societies. Culture is important because it provides
individuals, within a society, with a sense of identity and an understanding of what is
deemed to be acceptable behaviour. Culture is learned, the elements are interrelated,
and culture is shared amongst members of a society or group.
Organizations that practise marketing communication in international environments have
to be fully aware of the cultural dimensions associated with each of their markets. In
addition they need to consider whether it is better to use a standardized approach and
use the same unmodified campaigns across all markets, or adapt campaigns to meet the
needs of local markets.
Advertising can differentiate, reinforce, and build awareness but is not very good at
getting responses or driving behaviour.
Sales promotions are persuasive, public relations can inform audiences and differentiate
organizations and brands, whilst direct marketing is strong at generating responses from
target audiences: that is, persuading them to behave in particular ways. The final tool,
personal selling, is competent at all the DRIP tasks but excels at persuasion.
Understand and set out the criteria that should be used to select
the right communication mix
Using a set of criteria can help simplify the complex and difficult process of selecting the
right marketing communications mix.
There are five key criteria:
• The degree to which a tool and the message conveyed is controllable,
• The credibility of the message conveyed,
• The costs of using a tool,
• The degree to which a target audience is dispersed, and
• The task that marketing communication is required to accomplish.
Explain the characteristics of the different media and how they are
categorized
Each medium has a set of characteristics that enable it to convey messages in particular
ways to a target audience. For example:
• television uses the sight and sound,
• radio just sound,
• outdoor usually just sight, and
• digital media can use sound, touch and sight.
In order to make sense of the vast array of available media it is helpful to use a
categorization system. Three media categories can be identified: classes, types, and
With each type of medium there are a huge number of different media vehicles that can
be selected to carry a client’s message.
Discuss some of the changes that are happening in the media and
communication landscape
Media and audience fragmentation reflects on some of the dramatic changes that have
occurred within marketing communications, and the media in particular. Not only has the
number of media expanded as a result of developments in technology but the number
and type of leisure activities pursued by audiences have increased. This reduces the size
of audiences available for commercial advertising, which in turn has motivated client
organizations to find new ways of communicating with their target audiences. Mass
media advertising is giving ground to online and digital media, the marketing
communication industry is undergoing transition and restructuring, and new
communication methods, such as social networking and branded entertainment are
emerging.
At one level, there are decisions to be made about the overall strategy and direction of
the marketing communications, and issues associated with the process and, of course,
the content of marketing communications plans.
At another level, decisions need to be made about the right mix of tools and media
necessary to engage with target audiences, and to decide about what is to be said in the
message and how it is to be presented.
Behind all these activities are issues associated with the management of resources, both
human and financial, and the agency relationships necessary to generate the
communication materials. Once implemented, management are still involved through the
control, monitoring, evaluation, and feedback processes.
Originally, these briefs were handwritten but, of course, new technology has helped
transform the speed, accuracy, and dissemination of these important operational
documents. There a re three main ways which agencies are rewarded financially for their
work. These are traditional commission system, which is giving way to a combination of
payment-by-result and fee-based methods.
The third perspective concerns the systems and processes associated with the marketing
communications planning process.
Distribution channels decisions are about managing which channel best suits the
organization’s objectives. The key consideration which reveals itself here is the
importance of optimizing the balance between the three elements of economics,
coverage, and control.
The first decision is the selection of the structure of the channel. If it is decided that
intermediaries will be required, management then need to consider the type of market
coverage that will be required; the number and type of intermediaries to use; and how to
manage the relationships between channel members. These choices are important as
they can affect the value that is ultimately provided to customers.
Examples include: department stores, discount stores, convenience stores, limited line
retailers, speciality retailers, category killer stores, supermarkets, and superstores. In
addition to the underlying marketing strategy, retailing establishments can be further
characterized according to store or non-store presence.
in non-store retailing.
These are important because they shape the way in which marketers design, develop,
deliver, and evaluate the marketing of services.
• public sector,
• charities, and
• the newly emerging social enterprise sector.
They share many characteristics, for example, they al work with multiple stakeholders
and have multiple objectives, there is limited customer choice with respective to the
services offered, and they all need to demonstrate full transparency and accountability
for their actions.
These organizations buy products and services to make goods for resale to their
customers but they also consume items that are required to keep their offices and
manufacturing units functioning.
Describe the different types of goods and services that are sold and
bought in business markets
Products and service bought and sold through business markets are categorized as:
• Input goods,
• Equipment goods, and
• Supply goods.
customer needs. In addition both require information about customers and competitors
in order to achieve their objectives.
In addition, there is a close match in terms of the purpose, approach, and content
between the extended problem-solving, limited problem-solving, and routinized response
behaviour phases of consumer buying and the new task, modified rebuy, and rebuy
states associated with organizational buying.
Organizations interact with other organizations in order to provide superior value for their
customers. The quality, duration, and level of interdependence between organizations
vary considerably, and this value can be visualized as a continuum. At one end of the
continuum are transactional exchanges, characterized by a long-term orientation, where
there is complete integration of systems and processes and the relationship is motivated
by partnership and mutual support.
There are three main approaches or schools of thought associated with relations
marketing. These are:
• The Nordic school,
• The Anglo-Australian school, and
• The Industrial marketing and purchasing group (IMP).
• Power, and
• Conflict.
These are interrelated and the management of customer relationship should be based on
the principles of reducing the influence of both power and the incidence of conflict in
order to build customer trust, gain customer commitment, and, through loyalty and
retention, generate customer satisfaction.
This approach should increase the perceived value of the relationship for all parties.
These structural properties across which electronic resources may differ and can be
compared have an impact on the nature of the user experience, and the achievement of
marketing objectives. As such, marketers need to be increasingly aware of their effect
and their marketing implications.
• Communication, and
• Relationship management,
• Transaction management; and
• Distribution and logistics management.
In essence, the most important aspect of electronic technology for marketing is not how
innovative and unique technologies are, but rather what they will allow you to do
differently, more effectively, and/or more efficiently.