Marketing

• Marketing


  On-going activities of the business to reach the Living Standards Measure (LSM) / target market and methods the business utilises to connect and engage with its target market
• Aims/Importance of marketing


  • To convince the market of the value of the products and/or services with the aim of selling these products/services to make a profit
  • Creates best mix of 7Ps to satisfy needs of the customer
  • Improves /builds businesses competitive position in market
• The 7Ps of marketing

  • Product
  • Price
  • Place
  • Promotion
  • People
  • Process
  • Physical evidence
• Product


  • Product type may range from convenience goods, select goods, to speciality goods
  • The product life cycle will have an impact on how the product is marketed
• Price


  Monetary value of a product or service that consumer is willing to pay
• Pricing strategies


  • Market penetration pricing
  • Loss leader pricing
  • Promotional pricing
  • Bulk discount
  • Prestige pricing
• Place


  • Selective distribution
  • Exclusive distribution
  • Franchising
• Promotion


  Also known as marketing communication, the way business communicates what it does and what it offers to the consumer
• People


  Refers to the employee, not the customer. The employee is the face of the business and their reputation lies in the hands of the employees. Businesses must ensure correct level of training and motivation is given to these people.
• Process and Physical evidence are also part of the 7Ps of marketing
• Strategic role of marketing

  • Marketing strategy co-ordinates and considers all aspects needed to reach the consumer, and needs to be in line with the business's overall corporate strategy
  • Collaboration between other business activities is required to ensure it is implemented effectively and all objectives are achieved
  • Considerations include social, political, economic, cultural and technological trends that are shaping the market they operate in
  • Market audit to pinpoint the business's position in the market and look at the resources they have to influence the market
  • Marketing plan defines objectives, determines targets and performance measures to understand financial budgets
  • Market mapping is a visual representation of market conditions/trends
• Marketing is interdependent with other management functions in a business
• The CPA regulates all forms of direct marketing, while the POPIA Act is limited to direct marketing by electronic communication
• The POPIA Act requires businesses to get consent from customers before processing their personal information
• Branding


  A unique character such as a name, term or logo all combined to form a set which is intended to identify the goods/services of a seller
• Advantages of a strong brand

  • Quality
  • Positioning
  • Repositioning/Rebranding
• Elements of a successful brand

  • Quality
  • Positioning
  • Brand name
  • Image
  • Service standards
  • Product guarantee
  • Packaging
  • Delivery
• Brand extension


  When a company uses its leverage to launch a new product in a different category
• Brand stretching


  Brand stretching refers to the process of using established brand names to launch products in an unrelated and different product category
• Ethical marketing


  Seeks to promote honesty, fairness and responsibility in all marketing
• Advertising Standards Authority


  They regulate advertising in the public interest through a system of self-regulation
• Advertising Standards Authority


  • Independent body set up and paid for by the advertisers, receive no funding from government
  • Respond to concerns and complaints from consumers and businesses regarding adverts
  • Take action to ban ads which are misleading, harmful, offensive or irresponsible
  • Monitor ads to check they're following the rules
• Rules for Ethical Social Media Marketing

  • Be truthful and honest
  • Cite your sources
  • Don't Exploit Emotions
  • Don't spread misinformation
  • Read before you share others' content
• Types of unethical advertising

  • Exaggeration
  • False brand comparison
  • Surrogate advertising
  • Using subjective rather that objective claims
  • Exploiting children in adverts
• Materialism is a tendency to consider material possessions and physical comfort as more important than spiritual values
• Consumerism is the propensity to consume and keep consuming, the drive to buy and own more stuff, and to define one's identity through what they own
• Consumerism focuses on the act of buying and consuming goods, while materialism emphasizes the value placed on those possessions as sources of satisfaction and identity
• Using deceptive names to create confusion, selling 2nd hand goods as new, and cultural pollution (constant assault by advertising and promotion on our senses leading to loss of traditions and values in communities) are examples of unethical marketing practices
• Advantages of franchising for franchisee

  • Buying into a known brand, low risk
  • Immediate name recognition, tried and tested products, standard building design and décor, detailed techniques in running and promoting the business, ongoing help in promoting and upgrading of the products
  • Part of a group, support from other franchisees
  • Easier to get finance
  • Very low failure rate
• Disadvantages of franchising for franchisee

  • Inclined to operate within certain guidelines
  • Upfront fees can be expensive
• Advantages of franchising for franchisor

  • Can expand business quickly without large capital outlay
  • No staff problems as each entrepreneur is running his/her own franchise
  • Franchisees are committed to work hard as they are working for a profit and not a set salary
• Disadvantages of franchising for franchisor


  • Dependent on success of franchisee
  • Does not have direct contact with customers
  • Difficulty to keep training and giving assistance to all franchisees
  • Administrative duties are long and tedious involving collection of royalties and controlling the brand
• Costs associated with franchising

  • Initial lump sum payment to secure right to trade in name of the business
  • Furnishing costs
  • Management fee (if franchisor assists with set-up)
  • Royalties (payment for use of trademark, usually 5%-10% of turnover)
  • Advertising fee (payment towards the group advertising)
• The competition in the clothing retail industry is continuously increasing
• To be successful, businesses have to distinguish themselves in terms of service and quality in the marketplace
• A successful business in the clothing retailer industry will have a strong focus on incorporating these value propositions in their marketing campaigns
• Considering the ever-increasing level of competition, clothing retailers must plan their marketing strategies to align the business with the trends driving the industry
• As an independent consultant, you have been asked to assist the marketing manager of a clothing retailer brand of your choice to develop a marketing strategy
• You have been asked to write a business report to the marketing manager where you explain how the marketing strategy can impact positively on the buying decisions of current and potential customers