Please enable JavaScript.
Coggle requires JavaScript to display documents.
AL Chapter 13 - Marketing Strategy - Coggle Diagram
AL Chapter 13 - Marketing Strategy
Planning and approaches to marketing strategy
The marketing plan sets out the objectives, the strategy, resources required, marketing mix
A plan comes after the business has analysed the market
A marketing strategy is a long term plan developed by a business to achieve its marketing objectives,
A marketing budget sets out the expected inflows and outflows linked to activities
Marketing analysis occurs when a firm undertakes a detailed examination of the characteristics of a market
A good understanding of markets helps a business to target the right segments and be more effective
Marketing analysis also involves market size, market share, likely costs and difficulties, trends within the market, patterns of sales, substitute products
Developing a coordinated marketing mix in relation to objectives
Marketing mix is made up of Price, product, promotion and place, only successful if all terms set out
The elements of the marketing mix must be integrated and reinforce each other
Integrated mix must take account of the position in the product life cycle and market conditions
Market planning involves an analysis of market produced from research, setting of marketing objectives, developing market strategy, setting marketing budget, outlining details of activities
Benefits of producing a marketing plan
A marketing plan shows how much is needed to be available to sell and at what times
Human resources effected in terms of numbers and skills needed
Influences the Fianacial forecasts
Having a plan coordinates actions, motivated, enables proper reviews
Possible limitations of producing a marketing plan
Takes time to prepare
Inflexibility
Inappropriate if conditions change
Managers need to review regularly
Deciding on a marketing strategy
Characteristics of target market
Nature of the product
Strengths of the product
Positioning of the business relative to its competitors
Link between marketing strategy and other functions
Marketing objectives
Risks involved
Involvement into the business strengths
Changing a marketing strategy
Changes come about because competitors actions force a change
Strengths of a business change
Business doesn't perform well
New business opportunities
Objectives change
Market conditions change
Changing role of IT and AI in marketing
IT
IT provides a customer relationship management (CRM) system, enabling a business to track enquiries to manage stages
Content management systems (CMS) enable content on a website to be updated and managed
Analyses huge quantities of data to identify patterns and customer trends
Enables apps to help customers access information and order items
AI
Analyses customers shopping data to enable recommendations on what they might want
Suggests what customers might want to buy alongside their purchases
Interprets data like social media posts to identify trentds and opportunities in the market
Allows chatboxes so businesses can talk to customers online
Personalises content so customer sees adverts and stories
Generates content for marketing campaigns and website content
Analyses data to make online marketing campaigns
Strategies for international marketing
Globalisation
Globalisation refers to the growing integration and interdependence of economies and cultures which involves increased trade and increased movement of capital and people
Increased due to political agreements that opened up markets by removing protectionist measures, better transport and communications technology
Globalisation results in more trade between countries, more money moving between countries and direct investment, similar products and services being sold around the world, outsourcing reduces costs
Leads to greater economic collaboration which leads to decreasing barriers to trade, more trade agreements made, increasing ease of moving capital and money between countries, increased incentives for foreign investment
Opportunities for globalisation
Marketing opportunities to increase sales
Costs fall as low labour and materials can be assessed
Unit costs fall through economies of scale if the business is producing and selling on larger scales than it operates
Threats for globalisation
Domestic businesses face increased competition due to more businesses in the foreign markets
Factors influencing whether to enter international markets
Benefits of finding new markets abroad
Benefits of increased size leading to economies of scale, and lower unit costs
Opportunity costs
Risks of operating in different countries
Processes of entering international markets
Identify which international markets may be of interest and which ones will generate sufficient returns to justify risks and opportunity costs
Select which international markets to enter and whether it would be sufficient understanding and expertise
Decide how best to enter the market
Factors effecting the identification and selection of international markets
Market size
Degree of competition
Likely reaction of competitors
How much the business understands the market
Likely returns
Risks
Opportunity costs
Methods of entering an international market
Exporting - involves exporting products from the home country and marketing and selling in another country through an agent
Licensing - one business licences another business to distribute and sell its products in return for a fee
Franchising - when a business charges a dee to another business for the right to use trademarks, logo, promotional material...
Joint ventures - two businesses contribute materials to a project, risks and rewards are shared
Merging or takeover - There is existing production and distribution channels, however different cultures are mixed
Foreign direct investment (FDI) - investment from overseas, overcomes trade barriers, low labour costs, lower taxes...
Deciding the best way of entering a market
Extent to which the business wants to invest
Risk the business is willing to take
Businesses understanding of a market
Choice between developing a pan global marketing or local marketing
Pan global marketing is marketing products or services in similar ways to global markets in different countries
All marketing activities are integrated across different national boundaries and global branding is developed using the same logos
An alternative approach is adapting marketing for local markets to better meet local needs
This may be brand name, prices, promotional strategies
Factors encouraging pan global marketing are benefits of economies of scale can be spread globally, greater efficiency
Factors encouraging local marketing are the different regulations and cultures
Choosing a strategy
Nature of the product, how it will appeal to the markets
Pricing approach
Brand name chosen will need to be acceptable for all markets
Promotional strategy as the business needs to consider the position in the global market