Topic 4

MarketingMarketing Planning

Learning objectives

To know what a marketing mix isExplain the value of a marketing auditApply Porter’s Five Forces to analyse

competitive pressures in the market place

Marketing Mix

• Key decisions that must be taken in the effective marketing of a product

• 7 P’s (There are 4 key ones)– Product– Price– Promotion– Place

• People• Process• Physical evidence

Not all the 7 p’s have the same degree of significance in every case

Co-ordinated marketing mixKey marketing decisions complement

each other and work together to give customers a consistent message about the product

Appropriate marketing mix

• Poorly integrated marketing decisions – expensive, well-known brand of perfume on sale in a market stall?

• Marketing mix will be based on affordable marketing objectives that– Co-ordinate and are consistent with each other– Targeted at the appropriate consumers

Marketing Audit

• Regular review of the cost and effectiveness of a marketing plan including an analysis of internal and external influences

• Consists of 3 key features1. Analysis of business’s internal strengths and weaknesses

and how they have changed since the last audit2. Analysis of external opportunities and threats and how

these have changed since the last audit3. Review the progress of the marketing plan, this will

analyse– Market share– Actual sales– SMART objectives

Marketing Audit

• Once the audit has been completed, changes to the marketing mix might be needed to respond to any of the changes identified by it

Porter’s Five Forces analysis - HL ONLY

• Framework that analyses an industry as being influenced by five forces

• By analysing markets in this way, helps a firm decide whether to enter or not

• Provides insight into potential profit• By analysing the existing markets decisions can be

made, such as, should we stay in this market?• With knowledge gained and the power of competitive

forces, the business can develop strategies that may help improve their own position

HL

Industry competitors

Porter's Five Forces ModelPorter's Five Forces Model

Source: Michael E. Porter Competitive Strategy: Techniques for Analyzing Industries and Competitors, (The Free Press, 1980)

Industry competitors

Rivalry amongexisting firms

Porter's Five Forces ModelPorter's Five Forces Model

Source: Michael E. Porter Competitive Strategy: Techniques for Analyzing Industries and Competitors, (The Free Press, 1980)

Potentialentrants

Industry competitors

Rivalry amongexisting firms

Threat ofnew entrants

Porter's Five Forces ModelPorter's Five Forces Model

Source: Michael E. Porter Competitive Strategy: Techniques for Analyzing Industries and Competitors, (The Free Press, 1980)

Substituteproducts

Potentialentrants

Industry competitors

Rivalry amongexisting firms

Threat ofnew entrants

Threat ofsubstitutes

Porter's Five Forces ModelPorter's Five Forces Model

Source: Michael E. Porter Competitive Strategy: Techniques for Analyzing Industries and Competitors, (The Free Press, 1980)

Suppliers

Substituteproducts

Potentialentrants

Industry competitors

Rivalry amongexisting firms

Threat ofnew entrants

Bargaining powerof suppliers

Threat ofsubstitutes

Porter's Five Forces ModelPorter's Five Forces Model

Source: Michael E. Porter Competitive Strategy: Techniques for Analyzing Industries and Competitors, (The Free Press, 1980)

BuyersSuppliers

Substituteproducts

Potentialentrants

Industry competitors

Rivalry amongexisting firms

Threat ofnew entrants

Bargaining powerof suppliers

Bargaining powerof buyers

Threat ofsubstitutes

Porter's Five Forces ModelPorter's Five Forces Model

Source: Michael E. Porter Competitive Strategy: Techniques for Analyzing Industries and Competitors, (The Free Press, 1980)

Task

Choose an industry / market in your own country. Based on some

research, analyse using Porter’s Five Forces, assessing the overall

degree of competitive rivalry.