BGY-Bus and Management-Week 22-Units 1,2,3
• Unit 1-Marketing-Intro. And
• Unit 2-Marketing objectives and
• Unit 3-Analysing the market
Def: Learning about customers and
competitors, so that you can provide the
right product ( right price , right place, right
promotion) - to achieve your co’s
Need following market knowledge:
• A. Market size (few/many customers)
• B. Competitor’s market
• C. Customer’s habits/ likes /dislikes
• D. Our image to non customers
• E. Distribution methods and outlets 3
There should be :
Clear objectives and therefore a clear
• 1.Increase our market share
• -Cut price of our product/change
packaging to attract consumers
• Keys to Success:
• 1.Jump before you are pushed
(anticipate/be ready for change, not
just react to it)
• 2.Exploit your assets
(select opportunities which allow
you to use your assets the best)
• 3.Keep aware of consumer
psychology (needs, beliefs etc.)
Characteristics of three types of firms:
• A. Market oriented:
- Monitors & changes with market
- Many products
- special offers/promotions/eye
-e.g. Burger King
• B. Asset Led-marketers:
- Monitors changes-but responds to
long term opportunities.
- Few products & Supplies to order
-Aim : build image in the long term
-e.g. Porsche 6
• -Does not monitor changes in
• -Few products (with limited
• -Little promotion e.g.
• .e.g. Farmers/Gold mine co.
• 1. Affordable ?
• 2. Can we produce it?
• 3. Knock on effects?
(How will consumers
/competitors or the industry
Marketing objectives and decision making
• Objectives: the marketing targets that
must be achieved for a co. to reach
• Decisions are based on a clear sense of
direction ( i.e. the objectives)
• Setting marketing objectives:
• 1.At senior level
• 2. In mission statement
• 3. Must be a balance between
achievable/realistic and challenging
For objectives to be successful:
• 1.Provide future direction
• 2.Express consumer’s belief
• 5.Fully communicated to staff
• 6.Consistently followed in
practice (actually used in
Types of Marketing objectives :
• A. Product differentiation
-extent to which consumers see your
product as being different from the rest.
-Use special advertising/ product
designs /target marketing
• B. Growth (should be slow/not too fast)
• C. Continuity for the long term
• D. Innovation
-Bringing a new product/idea to the market
-NB for technology/fashion
Targets achieve objectives by:
1.Setting small goals
2.Showing the route
Targets may be beneficial:
1.Communicates aim to all staff
2.Basis for cooperation with other
3.Early warning of failure
4.Can motivate staff
Constraints on meeting objectives:
• 3.Market standing (our image)
• 2.Consumer tastes may change
• 3.Economy may change 13
MARKETING MODEL - how to turn an
objective into a strategy:
1.Marketing objectives ( e.g.
5.Control & new product)
4.Test the 3.Form
options (which Hypothesis( new
mobile?) mobile?) 14
UNIT 3 -Analyzing the market:
• Market- Def:
- Place where sellers and buyers meet.
- where we will find our customers.
• Market size
• Measurement of all the sales ,by ALL the
co’s in the marketplace.
• Measured by volume/value
• NB –used to measure market share
(shows our success/failure)
Factors affecting market growth:
• 1.Economic growth e.g.
recession or boom?
• 2.Social changes e.g. ready
made meals ( may appeal to
• 3.Changes in fashion/taste
• 4.suppliers identifying and
meeting consumer’s needs.
Def:-% of total market held by one
-Co. aims to be the “brand leader”- i.e.
have largest share (e.g. Walkers)
Benefits of brand leader:
2.Highest distribution level
3.Offer lower margins to retailers
4.Easier to obtain consumer trials
Example of market share
No Name Year-’98
1. Kit Kat 163151
2. Mars Bars 132343
3. Cadbury’s dairy milk 96548
Total market value 3 354 418 18
Source: IRI info scan
Consumer usage and attitudes
• Aim: to gain a deep understanding of
• We need to know-Why customers buy
certain products? Who does the
To acquire consumer knowledge:
1.Qualitative research-group discussions
with consumers (by psychologists)
2.Quantative research- e.g. conducting
• Def: It is a statistical break down of the
people who buy a particular product .
• Who are they? Age? Sex? Tastes?
• Helps determine our target market i.e.
the market group we are aiming our
1.Show the key variables that
differentiate the brands in a market.
2.NB- for identifying a Market gap 20
Market mapping-shoe shops
Premium price Bally
INDUSTRIAL VERSUS CONSUMER
• Industry Mkt:
• Co. sell products to other co’s.
• Image is not that NB
• +- 100 customers
• -Trade exhibitions generate contacts
• CONSUMER MKT:
• Co. sells to individuals and co’s.
• >100 customers