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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.