1. 1
BSBMKG502B – Implement and monitor
marketing activities
Presentation Five
Tuning the marketing mix

2. 2
AN OVERVIEW OF MARKETING
WHO?  The prospects: customers and competitors
WHAT?  The product/service
WHERE?  The location of premises and markets
WHY?  The customers’ buying motives and needs
WHEN?  The right product/service at the right
place, at the right time
HOW?  Production, distribution and promotion
HOW MUCH?  The price customers will pay.
What the business wants to spend.
The profit you will make.

3. 3
THE MARKETING PROCESS

4. 4
MARKET SEGMENTATION:
IDENTIFYING YOUR TARGET MARKET
There are two types of broad markets which
help form the basis for identifying which
market(s) your business will grow to serve.
 The industrial market: this market is
made up of organisations and businesses,
and involves business-to-business
marketing.
 The consumer market: this market
consists of all individuals who make up the
population.

5. 5
MARKET SEGMENTATION
Market segmentation is the process
of dividing a market into
distinguishable segments, in order
to identify customer characteristics
and prepare a customer profile.

6. 6
TYPES OF MARKET SEGMENTATION
WITHIN THE CONSUMER MARKET
A market segment is a group of
customers related by some common
characteristic(s).
Geographic segmentation
Demographic segmentation
Psychographic segmentation
Operational variables segmentation

7. 7
MARKET SEGMENTATION

8. 8
CUSTOMER PROFILE
In profiling your customers, you should be
attempting to answer the following questions.
 Who are the customers?
 What do they typically buy and how do they
hear about it?
 How often do they buy?
 How can my new product/service meet the
customers’ needs?

9. 9
GOOD MARKETING
Good marketing will maximise your
chances of obtaining the two best types of
business.
 Repeat business: customers who are
pleased with your product/service and
therefore return to your business.
 Referral business: customers
who recommend your
product/service to others.

10. 10
CONDUCTING A SWOT ANALYSIS
 An essential part of market research is
understanding your current market
position. One effective means of assessing
this position is to conduct a SWOT analysis.
 SWOT is an acronym for Strengths,
Weaknesses, Opportunities and Threats. The
purpose of conducting a SWOT analysis of
your business, is to determine your business
venture’s strengths and weaknesses, and
identify and evaluate opportunities and
threats in the market place.

11. 11
EXAMPLE OF A SWOT ANALYSIS

12. 12
SWOT ANALYSIS
Based on the SWOT analysis
you should develop
strategies to:
 maximise and capitalise on
your strengths
 improve on your
weaknesses to overcome
their effect on your business
 recognise and take
advantage of opportunities
 be aware of, and minimise
the potential impact of
threats.

13. 13
YOUR COMPETITORS
A competitor is any business that offers
the same or similar products and services
to the same groups of customers you are
targeting.
There are three types of competitors for
your product/service:
 Direct competitors
 Indirect competitors
 Emerging competitors.

14. 14
ANALYSING YOUR COMPETITORS
In order to analyse your competitors, you
need information in the following areas:
 Location
 Products offered
 Services offered
 Markets served
 Points of sale
 Pricing structure
 Strengths
 Weaknesses.

15. 15
COMPETITIVE ADVANTAGE
Your competitive advantage must be:
 based on the strengths of your
business
 meaningful and valued by your target
customers
 substantial enough to make a
difference
 sustainable in the face of competitor
action and changes in the market.

16. 16
POSITIONING STRATEGIES

17. 17
THE MARKETING MIX
“4P’s”:
 Product – what you are selling.
 Price – what you expect in return for
offering your product/service.
 Place – where you will sell your
product/service to the target market.
 Promotion – the way you are going to
let customers know about your
product/service.

18. 18
FEATURES OF A
PRODUCT/SERVICE
A feature refers to any attribute of your
product/service. Features are the tangible,
measurable aspects of a product/service.
 engine size of a car
 woollen fabric in a dress
 the processing speed of a computer
 the provision for same day service by a dry
cleaning firm
 the taste of a home-made apple pie

19. 19
BENEFITS OF A
PRODUCT/SERVICE
A benefit, describes how a product/service
will be of advantage to, or help, a customer.
increased safety
increased efficiency
saved expense
improved appearance
greater comfort
enhanced image

20. 20
LIFE CYCLE OF YOUR
PRODUCT/SERVICE

21. 21
LIFE CYCLE OF YOUR
PRODUCT/SERVICE

22. 22
PRODUCT/SERVICE MIX
Remember that your aim is to meet the customers’ need in
relation to:
 product/service application
 product/service range
 quality
 features
 packaging
 unit size
 guarantees or warranties
 benefits to customer.

23. 23
PRICE
It is not possible to make pricing decisions in
isolation. You need to consider a combination
of factors such as:

24. 24
METHODS OF PRICING
There are three main methods
of pricing products/service:
 Cost-based pricing
 Demand-based pricing
 Competition-based
pricing.

25. 25
METHODS OF PRICING

26. 26
SPECIFIC PRICING STRATEGIES
 market skimming pricing
 market penetration pricing
 target return pricing
 going rate pricing
 perceived value pricing
 image pricing
 product line pricing
 psychological pricing
 loss leader pricing
 discount pricing
 distress pricing
We have already covered what these mean in
previous lectures.

27. 27
PLACE
The word place in marketing
terms, refers to where the
exchange of product/service occurs
between the seller and the buyer.
Deciding on a ‘place’ involves three
aspects:
 the location
 the premises and its
location
 methods of distribution.

28. 28
Activity
• You are now going to conduct a SWOT analysis based on
a new product.
• A CRICKET BALL
• Saved under:
Activities/Hardcopy/Slides