Bsbmkg502b – establish and adjust the marketing mix Essay
Bsbmkg502b – establish and adjust the marketing mix
Assessment Task 1 – Work Based Knowledge Test
1. What are the characteristics of the products and/or services in your business? Ans. I am working in . We are selling burgers as well as fries and soft drinks. But recently we start selling frozen coke and ice cream, which Mc d was selling and now we are making good money.
2. How do these products and/or services relate to the market they are in, and to the immediate competitors? Ans. We have many competitors in market but Mc d is our biggest competitors because they are selling same product what we are selling.
3. How would you determine the effect of pricing variables on demand? Ans. It is depend on main four factor place, price, product and promotions.
4. What promotional Methods and channels of distribution would you use to obtain the marketing outcomes established in your business? Ans. At the movement we are using electronic media more than paper media. Customers can use our iphone app and they will get something free.
5. Describe the channels of distribution that you would use to ensure greater market penetration? Explain how you would develop a pricing strategy for these products/services Ans. For greater market penetration, I shall not only market through the advertisement I will also take help from marketing agencies who can promote my business on a larger scale.
6. Explain how you would develop a pricing strategy for these products/services If product is sold at the lowest price regarding all my competitors, we practice competitive pricing. Sometimes, competitive pricing is essential. For instance, when the products are basically the same, we use this strategy The success of competitive pricing strategy depends on achieving high volume and low costs.
If prices are lower than costs, we are going straight to bankruptcy! To avoid such a mistake, we take notice of the break even ratio. -Cost-plus-profit: It means that add the profit need to cost. It is also called cost-orientated strategy and is mainly used by the big contractor of public works. The authority may have access to the costing data and should like to check if the profit added to the cost is not too high. In fact, this strategy is only good for a business who’s the customers is public collectivities or government agencies.
-Value pricing: It means that base the prices on the value we deliver to customers. For example, when a new technology has a very large success, you can charge high prices to the customer. This practice is also called skimming. It is easy when you are in the introductory phase of the product life cycle. Value pricing is also common in luxury items. Sometimes, the higher the price, the more you sell.
7. Identify and analyse the level of customer service that you would pursue relevant to the products/services associated with your business. Ans. First of all, personal presentation, although not necessarily a key factor of customer service, is however critical.
It is imperative that one is open and honest with the customers. It is therefore imperative that employees employed to promote the product are not paid on commission but rather at an hourly rate. This ensures more honesty and less pushiness, and less aggressive sales ‘tactics’.
8. Describe your target market in terms of demographic, psychographic, and behavioural variables. Ans. Psychographic / Behavioral variables– Psychographic variables refer to any attribute relating to personality, lifestyle, values, interests or attitudes. These factors consider various influences on a person’s buying behavior. Different lifestyle choices like parenting, exercise decisions, religion, marriage or health can greatly affect a person’s requirements or preferences for certain products or service.
People have different lifestyle patterns and behavior could change as people pass through different stages in life. On the other hand, a consumer’s opinions, interests or hobbies will have a huge impact on the products or services they will choose to buy. Demographic – are the statistical characteristics of a population As the prices of our store products are comparable with other convenience stores, it is not a good idea to open a deli store in may lands. So from my point of view it would be great to open a store near to bays water as there is no shop near to that place
9. Describe how each component of the marketing mix interrelates to the target market? Ans. Marketing mix is a mixture of 4 variables; product, price, place and promotion. These variables make up the core marketing strategy as they help to define the marketing environment in which they operate. Product:
Focusing on meeting the customer’s needs.
A good product makes its marketing by itself because it gives benefits to the customer. Design, packaging and the safety and the green a friendly product to environment gets an advantage among some segments. Price The price should not be above or below the price of other retailers, as this would not suit the needs of the target market.
Promotion strategies will be focused to the target market segment. Given the importance of word-of-mouth/referrals among the areas resident. We shall strive to service all our customers to gain their business regularly, which is the recipe for our long-term success. We shall focus on direct resident marketing, publicity, trial food demonstrations, and advertising as proposed.
Channels of distribution include
• Distributing Pamphlets
• Build up stalls in big mall or outside of it
• Adding advertisement on local newspaper or channels
• Use of social sites (internet as well)
10. What environmental factors will affect the marketing mix in your business Ans. Environmental factors that can affect the marketing mix in any business include cultural factors, technological factors, demographic factors,
government factors and economic factors.
11. How do customer priorities, needs, and preferences impact on your marketing mix components? Ans. The Target Market in which our store aims to sell to, is everyone The customer’s needs, priorities and preferences influence the marketing mix compentants such that price should not be more or less than the recommended retail price.
Channels of distribution include stores such as word of mouth, Advertisement and also pamphlets and internet as well. Design what you consider is the most appropriate marketing mix to satisfy the target market and meets the marketing objectives? For appropriate marketing we need to consider four keys Product, promotion, price and place Product:-
It is a tangible good or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Promotion: – represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. Price: –
The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product. Place: – Represents the location where a product can be purchased. It is often referred to as the distribution channel.
It can include any physical store as well as virtual stores on the Internet 12. What do you consider is the most appropriate marketing mix to satisfy the target markets and meets the marketing objectives? Ans. Convenience stores are currently in the planning stage resources are limited. Currently we have received a $10000 grant from the government to get started. To ensure the marketing mix decisions meet the company’s strategic and operational objectives, I shall ensure the scarce resources are allocated as follows; Website Design $1500
Web- hosting $45.00
Other Web Costs $150.00
Stock including some Samples $20000
Business Cards $99
Shop Leasing Start-up Costs (Rent and Bond) $1150
13. Explain how you would monitor the marketing mix against marketing performance and isolate components for testing. Ans. As the marketing mix is comprised of 4 components, that is, price, promotion, place and product, to isolate each of these components for testing, that is, to test each component and its marketing particular performance, one must do simply that; isolate each component for testing.
To isolate each component for testing, and monitor the marketing mix, for marketing performance, I should first establish or seek to research some benchmarks for sales. It would be easy to test the effectiveness of place, of product and of promotion, but to test price would be somewhat difficult if it were not for industry benchmarks that establish the sales benchmarks.
14. How would you evaluate the implication of altering one or more components of your marketing mix in relation to marketing factors and consumer response Ans. I evaluate that altering one or more component of the marketing mix in relation to factors or consumer response would be effective; however, I do feel that only the price component would need to be altered in response to consumers. I do feel that I have a solid marketing strategy.
15. Describe the process you would use to adjust the components of the marketing mix in response to test results and evaluation of market response. Ans. The process I would use, to adjust the components of the marketing mix, in response to test results and in response to the market response is as follows I would adjust the price to below recommended retail price and only in such a way as to reach sales benchmarks of my competitors and meet the prices of my competitors, as after all the majority of the profit is donated to worthy causes.
16. Explain how you would ensure that the adjusted marketing mix would meet budgetary requirements. Ans. If I were to adjust my price to meet the benchmarks and prices of my competitors I would like to assume there would also be an increase in the number of sales. I am however aware this is merely an assumption.
17. What procedures would you use to ensure that the adjusted marketing mix continued to meet organisational, strategic and operational marketing objectives, and desired positioning? Ans. Procedures I would you use to ensure the adjusted marketing mix continued to meet organisational, strategic and operational marketing objectives, and desired positioning include; Adjusted price – I would need to continuously monitor sales and profit benchmarks and speak to an accountant in order to ensure that my business is still an effective profitable business.