Marketing Marketing Planning Topic 4 Marketing Marketing Planning

Learning objectives To know what a marketing mix is Explain the value of a marketing audit Apply 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

Co-ordinated marketing mix Not all the 7 p’s have the same degree of significance in every case Co-ordinated marketing mix Key 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 features Analysis of business’s internal strengths and weaknesses and how they have changed since the last audit Analysis of external opportunities and threats and how these have changed since the last audit 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

Porter's Five Forces Model Industry competitors Source: Michael E. Porter Competitive Strategy: Techniques for Analyzing Industries and Competitors, (The Free Press, 1980)

Porter's Five Forces Model Industry competitors Rivalry among existing firms Source: Michael E. Porter Competitive Strategy: Techniques for Analyzing Industries and Competitors, (The Free Press, 1980)

Porter's Five Forces Model Potential entrants Threat of new entrants Industry competitors Rivalry among existing firms Source: Michael E. Porter Competitive Strategy: Techniques for Analyzing Industries and Competitors, (The Free Press, 1980)

Porter's Five Forces Model Potential entrants Threat of new entrants Industry competitors Rivalry among existing firms Threat of substitutes Substitute products Source: Michael E. Porter Competitive Strategy: Techniques for Analyzing Industries and Competitors, (The Free Press, 1980)

Porter's Five Forces Model Potential entrants Threat of new entrants Industry competitors Rivalry among existing firms Bargaining power of suppliers Suppliers Threat of substitutes Substitute products Source: Michael E. Porter Competitive Strategy: Techniques for Analyzing Industries and Competitors, (The Free Press, 1980)

Porter's Five Forces Model Potential entrants Threat of new entrants Industry competitors Rivalry among existing firms Bargaining power of suppliers Bargaining power of buyers Suppliers Buyers Threat of substitutes Substitute products 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.