Unit 3A Applied Information Technology

Week 4

 

Monday - Today is catchup time on your Digital Portfolio

Try creating buttons in Fireworks, create a home page, and complete any outstanding work on the three topics cover so far this term.

 

Tuesday - Friday

Marketing Plans and the Marketing Mix

General introduction to the contents of a marketing plan.
• Importance of marketing plans in business.
• Marketing Mix
• 4P’s
• Importance of 4P’s
• Business document formats.
• Examples of marketing plan
s

 

Your first assessable task this semester is to write a Marketing Plan for a new product.
The following information will assist you in putting together this plan;

 

 

MARKETING AND ADVERTISING

 

Marketing

What is Marketing?

Marketing is an often misunderstood activity that is vital to the success of any business.

Marketing is very comprehensive - concerned with every aspect of your product or service from inception, design, pricing, distribution, selling and promotion through to after sales service and measurement of customer satisfaction.

Marketing is not just a matter of selling. It addresses what is to be sold, how it is to be sold, when and where it is to be sold, at what price.

Here is a good definition:

"Marketing is getting the right product or service in the right quantity to the right place at the right time ... and making a profit in the process."

 

The Marketing Function

The scope of the marketing function is extensive. Among the most important aspects are discovering where potential consumers of the product or service are to be found, how many there are and whether this potential market is growing or in decline.

Options for distribution must be assessed, competetive analysis undertaken and consumer attitudes probed to uncover needs.

Whilst the sales function is largely involved in working for the present, ie selling what is currently available, the marketing function is mainly looking to the future, anticipating changes in the marketplace and researching, developing and producing new products or services to meet those changes.

If marketing is doing its job properly then all facets of the business will be harnessed and focussed towards the achievement of one thing - customer satisfaction. For it is the function of marketing to identify the consumer, establish the needs and, by coordinating the efforts of all sections of the business, to bring about sales.

 

The Marketing Mix

Central to all marketing activity is the marketing mix which can be simply summarised by the 4 P's of Product, Price, Promotion and Place. The marketing mix is the set of characteristics which defines and results in the offer to the target market.

The major components of the marketing mix are:

 

Product
Price
Promotions
Place
       
Quality List Price Advertising Distributors
Features Discounts Personal Selling Retailers
Name Allowances Sales Promotions Locations
Packaging Credit Public Relations Inventory
Services     Transport
Guarantees     Warehousing

 

The Key Marketing Principles

In developing marketing plans and strategies, three concepts play a central role
- Market Segmentation, Differential Advantage and Positioning Strategy.

Market Segmentation

Consumers place differing degrees of importance on the individual elements of the marketing mix. They differ not only in the price they will pay, but in a wide range of benefits they expect from the product and its method of delivery. As a result, the market becomes split into several segments.

For example, the market for electronic calculators is made up of a number of segments including a "scientific users" segment, an "office" segment and a "general public" segment. Each segment will not only place a different emphasis on price when deciding what to buy but will also consider the features and benefits of differing products - the scientific segment requiring advanced functions, the office segment wanting durability, the student segment requiring compact dimensions and the general public looking for simplicity of operation. The distribution channels used to reach each segment will probably vary in this example, as will the advertising message and choice of media used to communicate with them.

Understanding the concept of segmentation is central to marketing because each different customer group will require a different marketing mix strategy. Furthermore, each segment will offer differing growth and profit opportunities so the trick is to deliver the best offer to the best segment.

 

Differential Advantage

Market segmentation is not enough in its own right to bring success as generally, other businesses will also be competing in any given target segment.

It is important to tailor an offer that will be seen by target customers as superior to that offered by the competition - this is known as providing a differential advantage. Creating differential advantage will ensure higher profits for the business for without it, customers will make their buying decision based solely on price.

Differential advantage can be obtained via almost any element of the marketing mix - creating a superior product, more attractive designs, better service, more effective distribution, better advertising and so on. The key is to understand that the advantage must be based on research into what customers really value and that the differential is developed after due consideration of competitive strategies and offers.

 

Positioning Strategy

Positioning is a composite of the first two principles. It focuses on the target market segment the business seeks to serve and the differential advantage with which it will compete with rivals in that segment. For example, Ferrari is positioned in the prestige segment of the car market with a differential advantage based on high performance and exclusivity. The appropriateness and effectiveness of the positioning strategy is the major determinant of growth and profitability in a business. Businesses which fail to implement effective positioning strategies gradually lose ground in the market place and give way to competitors that are more marketing oriented.

Conclusion

In today’s rapidly changing and highly competitive commercial environment a business can only be successful if its offer matches the needs and wants of buyers at least as effectively as its best competitors. To achieve success it is necessary to constantly review the marketing strategies and maintain your marketing knowledge.

 

 

Advertising

 

What is advertising?

Advertising is the technique of making products or services well and favourably known by that section of the public most likely to purchase those products or services, in the most effective and economical manner and for the primary purpose of assisting sales.

 

Reasons to Advertise

The objective of advertising is to increase profit by increasing sales. It should be remembered that each of the types of advertising listed below can be accomplished by personal contact unaided by advertising. However, limitations of time and the desire to build sales volume has seen advertising widely used to pave the way for sales. Advertising aims to:

 

  • Make the firms name familiar to the public.
  • Create goodwill and build a favourable image.
  • Educate and inform the public.
  • Offer specific products or services.
  • Attract customers to find out more about your product or service.

 


Rules of Advertising

There are four rules which serve as a sound guide when planning advertising and these should be examined before any form of advertising is booked or prepared.

1. Aim

What is the primary purpose of this advertisement? Is it to inform, sell, produce listings or improve the firm's image?

2. Target

Who is the target? From which sector of the public are you trying to achieve response, ie the investor, the pensioner, the career mother, the teenager, etc?

3. Media

Bearing the aim and target in mind, which of the media available is the most suitable - brochure, press, television, radio etc?

4. Competitors

Consider the enemy? How are your competitors approaching their advertising needs? Are they successful? Can you improve on their approach and beat them in competition?


 

Testing the Advertisement

Once an advertisement has been planned and created it is important to test its effectiveness before publication. If it does not satisfy all the following well-tried principles then start again.

  • Does it catch the eye?
  • Does it arouse interest?
  • Does it create desire?
  • Does it lead to action?

 


Trade Practices Act 1974 (the Act)

The Australian Competition and Consumer Commission gives advertising guidelines in information circulars that are available from the local office of the Commission, or from the website www.accc.gov.au.

Advertisers should be aware of Section 52 of the Act which is a broad prohibition of misleading or deceptive conduct. Basic rules are that you must consider the advertisement as a whole and the ordinary meaning of words used. Then you must determine if the persons to whom the ad is directed are likely to be led into error or deceived. Important facts which might influence a person reading the ad must not be omitted. Ads can be imaginative and can use humour, cartoons and slogans but these devices must not be misleading or deceptive.

If in doubt, the officers of the Australian Competition and Consumer Commission can give guidance. It is not, however, their function to give legal advice and remember that ultimate interpretation of the Act rests with the courts.

 

The Most Commonly Used Media

  • Stationery
  • Window Display or Office Front
  • Press Advertising
  • Printed Material
  • Outdoor Advertising
  • Specialist Publications
  • Cinema
  • Radio
  • Television
  • Yellow Pages
  • The Internet


Conclusion

It is important to note that advertising is a powerful marketing tool - but advertising alone cannot guarantee success. Market research, product or service features and benefits, price, after sales service and other promotional tools are all critical elements in ensuring that customers’ needs are identified and satisfied profitably.

taken from http://www.sbdc.com.au/drilldown/drilldown.asp?refid=2.31.1

What is Marketing PowerPoint

 

Introduction to task 1

Example pic