1.1 are specified by which market segment they are

1.1             
Explain the
importance of defining market segments to the development and achievement of
the marketing strategy

Defining the market segments is a huge
part of being able to target the correct audience and attract customers. The
segments are broken up into:

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·        
Age

·        
Gender

·        
Religion

·        
Culture

·        
Income

·        
Lifestyle

This allows marketing strategies to
focus on the audience that will best receive what they are trying to market to
them. For example, when selling food, the type of food will be aimed at either
a young person or an older person, or either a male or a female. It could even
be specific to a certain religion or culture. More expensive foods will be
aimed at people with a higher income rather than a lower income and health
conscious products sell the idea of a lifestyle to a certain group of people
like weightwatchers. However, everyone needs to eat, this is a requirement, but
they can all be marketed to differently because of specific traits that each
segment possess.

At Flightcase Warehouse the segments
are noticeable also as there is a brand aimed at lower income or people who are
just starting out in the industry and there is also a brand aimed at
professionals. All the brands within Flightcase Warehouse sell a lifestyle
however and this allows for marketing to get to most and still have effect.

1.2             
Explain the
difference between market segments and customer classification

A market segment tends to be more
generalised whereas customer classification is much more specified narrowing
down the target to a specific group of people. For example, a market segment
would be age or gender, but a customer classification would be more along the
lines of a business customer or a leisure customer.

1.3             
Explain how the
characteristics, motivations and behaviours of potential target customers are
identified

Once a potential customer has been
segmented and classified, their characteristics, motivations and behaviours
become more obvious as they are specified by which market segment they are in
as well as what type of customer they are. They are identified by looking into
buyer behaviour, this can be done by looking at a business’s previous sales.

1.4             
Explain how to
cluster customers with similar characteristics

Clustering is
a more “casual” alternative to segmenting. clustering is the process of
identifying similarities in customers so that they can be grouped it works
differently in that instead of grouping people by more definite traits like age
or gender, clustering identifies what people do. Meaning it is easier to
understand the customers and their motives without having to segment them.

1.5             
Describe how to
confirm that proposed segments are real, distinctive, viable and their buying
power measurable.

(Audience, amount of people targeted,
suppliers, demographic.)

The realness
of any proposed segment is generally measurable by certain criteria. The
segment must be profitable, and sales and profitability must be measurable.
This shows if the segment is viable. The audience that is being segmented must
be correctly measured and the amount of people targeted must be known as well
as the audience demographic, age, gender, religion, culture, income, lifestyle
etc.

1.6             
Explain how to
evaluate the profitability and stability of market segments

Market segment stability and
profitability are evaluated over time, whether they are stable and purchase or
engage consistently and profitability is measured by how much was spent and how
much has been made.

1.7             
Describe how a
range of products may appeal to different market segments

Different products appeal to different
market segments because of the difference in age, gender, religion, culture,
income and lifestyle. When a product is being marketed to the customer a target
audience is selected and this is who the product or service is primarily being
aimed at.

1.8             
Explain the
motivators and inhibitors that influence customer behaviour  

Customer behaviour is influenced by
various things including;

·        
Aspirations

·        
Lifestyle

·        
Income

·        
Time

·        
Status

·        
Family

Customers will buy depending on what
they aspire to, for example; someone may buy a premium product because of the
image it portrays or how it makes them feel even if they do not need it. This
is because they aspire to lead the lifestyle which the product is selling.

Customers will also buy depending on
the lifestyle they live not just one that the aspire to live, for example they
may see a product which would make their life easier and will buy It.

Income is a huge influence on what
people will buy as their income is what enables them to make the purchase.
Lower income means lower expenditure.

Time is another influence on buying
behaviour as the amount of time someone spends working will limit the amount of
leisure time they have therefore limiting the amount of time they have to spend
and vice versa, someone who works very little will have enough time to shop and
will likely purchase more frequently as they are trying to fill time.

Status is a huge influence as well as
people like to “keep up appearances”. Someone of a higher status will buy more
expensive products as this is seen to be the right thing to do and influences
them.

Family is a huge influence on what
people do and don’t buy and can help or hinder certain products. For example, a
customer without a partner or child would be more inclined to buy a games
console but they would not buy children’s toys or nappies.

1.9             
Explain the use
of Customer Relationship Management

CRM is used to monitor and contact
customers that a company already has or could potentially attract in the future
by organizing and making sales through marketing, customer service and
technical support.

2.1       Describe
the economic and buyer behavioural factors to be considered when assessing new
market opportunities.

Consumer price index is a huge
economic factor that needs to be considered when assessing new marketing
opportunities as this is the price of an average shop for most people and
generally determines how willing people will be to spend money. Employment
levels can also drastically effect marketing opportunities as if a marketing
campaign is put out and the audience they are trying to reach is mostly out of
work very few will buy the product or service that is being sold. Recessions
are huge lows in the economy and will drastically affect the way people will
spend and what they will spend it on. Similarly, seasons will influence peoples
buying habits, for example around Christmas people are more willing to spend
freely.

2.2       Describe
the cultural factors that are likely to affect customers’ perception of
products and/or services and sales performance

Culture is basically the views,
opinions and beliefs of a customer and these factors will affect each
individual customer perception of products and services that are on or released
into a market, which will directly affect the sales performance. So, culture
has to be considered when marketing a product as if not done correctly and with
enough care and attention a product may cause offence by being released at an
inappropriate time or being targeted to the wrong people. This means
researching demographics is vital and that the cultural beliefs are understood
and considered to ensure no one is offended. Supply and Demand is also linked
to cultural factors but in a different way. When a product is limited it may be
exclusive and more desirable meaning culturally people will want it as it is
“exclusive and desirable” because this will impress others and show status.

2.3       Explain
how to identify opportunities and threats in new markets and for new products
in existing markets

To identify opportunities and threats
in existing markets market research must be carried out. Not only the market
but the ecosystem of the market must be assessed to know of all the threats and
opportunities the product may face. The ecosystem is made up of current and
future technology in terms of products that are already out there and the
business models that supply them, so for Flightcase Warehouse that would be
other Flightcase retailers and individuals who make cases themselves. When a
new product is going to be released the business looking to release it needs to
see how the market is doing and consider its current state. This will allow an
informed decision to be made as to whether their product will work in the
current market and forecast how well they expect it to do once released.
Threats in the market are generally competitors and similar products but it can
also be things like an increase of supply costs, government regulations and
changes in consumer behaviour.

2.4       Explain
how competitor and potential competitor activity may affect projected sales
performance

Competitors and competition are good
and healthy for a business, as it makes each business work harder to provide
the best quality and service to win customers from existing and potential
competitors. Competitor activity is also important to a business when
forecasting projected sales performance as a competitor may have a really good
product launch or better deals for example than your own company meaning they
will directly affect how well your business will perform. Or they may have a
bad sales period meaning more customers will come to you. Potential competitors
may be unexpected and affect forecasts as they make moves to win customers from
your business.

2.5       Explain
the basis of recommendations to exploit new market opportunities

A new business opportunity needs to be
developed and a plan must be prepared. Before acting on it monitoring
competitor is invaluable as their customers can be yours. Knowing what they
sell, how they sell it and how much for will help a business to gauge an
opportunity arising for a product or service.

3.1       Describe
the topics to be addressed in a marketing strategy

·        
Research

Research is vital and should always be
done first as without enough information time and resources could be wasted on
a marketing strategy that will never be used. A few things that need to be
researched are the customers (demographics, segments, target markets as well as
their needs and purchasing power). The product and what is already out there
and what the competition has. How sales are currently within the industry and
the suppliers that the business will depend on.

·        
Planning

Planning the marketing strategy is key
to its success, the plan should include a few sections including: Target
customers, USP’s, Pricing and position strategy, Distribution plan and an
executive evolution. With these Sections the plan should be well rounded and
contain enough information to ensure the strategy will succeed.

·        
Development

Developing a marketing strategy
focuses on the potential customers and target markets as well as the overall
goals of the strategy. And this allows for an evaluation and adjustments to be
made so that the strategy is tailored to work to its best ability.

·        
Packaging

Packaging is designed to catch the
customer eye and generate interest in the product, so this must be designed
with the target audience in mind to ensure that they are going to see it and be
interested and want to buy the product.

·        
Pricing

Pricing is determined by margins for
example cost price, sell price and the profit margins that these prices
produce. But the price will also depend on similar products and competitors.

·        
Promotion

This is how the business is going to
communicate with its audience, this depends on the market research that has
been done as well as the market segments and the budget of the company.

·        
Distribution
after sales

After sales are crucial to a product
or service’s survival after the initial release and marketing. Companies like
Microsoft and Apple offer services like extended warranty or access to 24/7
helplines which costs the customer more but often makes them feel safe and this
is how after sales works. The customer is offered something that they don’t really
need but will likely buy.

3.2       Explain
the use of market analyses to inform the development of a marketing strategy

Market analysis is vital in the
development of a marketing strategy. A market analysis should really include a
few things:

·        
Economy Overview

·        
Competitive
Overview

·        
Occupational
Changes

·        
Strategic changes

An economy overview is there to
understand how the market is currently doing and how well it is expected to be
doing in the future, generally this is based on trends, but figures will also be
included to provide definite evidence. It can also help to establish ideas
based on other markets by using other market techniques and tricks for
yourself.

Competitive analysis is the research
into competitors, how they’re growing and what they’re doing and is focused on
those things and how they will develop over the period of around 10 years. It
will be presented as charts and should focus on regions as well as further
afield.

Knowing how people’s occupation and
job roles are changing can influence a marketing strategy as well. It will help
to be prepared for the workforce and letting customers know how you will be
growing and expanding.

Demographic analysis can show a
business’s strategic advantages as it will highlight how well a local economy
and its workforce is going and if it is stable.

3.3       Explain
how to evaluate risks to the achievement of objectives

Risks can be evaluated by
understanding how significant they are and then making the decision to accept
the risk or try to stop it or minimise it. Consequence and probability need to
be considered when ranking risks and deciding what action to take as this will
impact the achievement of the set objective.

3.4       Describe
how to forecast sales by product and/or service

Forecasting sales is the process of
estimating sales of a product and or service within the next few years. It is
usually based on previous sales, competitor analysis and the state of the
economy and ecosystem.

3.5       Explain
how to present a marketing strategy including aims, objectives, actions,
accountabilities, resources, budgets and forecasts

To begin with a situational analysis must be completed so that the
marketers know where the business is currently at and this should be a complete
overview of the businesses’ strengths and weaknesses. It should also highlight
what opportunities externally and internally can be used. Next the target
audience needs to be picked and this is done in terms of; age, sex, family,
earnings and location, basically those targeted should be easily describable by
those marketing. Goals also need to be decided, this could be done as SMART
targets (Smart, measurable, achievable, realistic and timed). After the goals
and target audience is there the types of communication, strategies and tactics
that are going to be used need to be decided upon. Finally, once all of this is
in place the plan can be signed off and begin.

3.6       Explain
the importance of engaging stakeholders in the development of a marketing
strategy

Stakeholders are important in the
development of marketing strategies as they know the business as well as the
business itself and will be aware of the direction that needs to be taken. They
will be happy to assist in the development of the business and marketing
strategies alike.

3.7       Explain
the significance of customer loyalty to the achievement of marketing objectives
and strategy

Keeping customers is significant to a
business and its marketing plan because it is roughly five times as expensive
to acquire a new customer than it is to keep an existing one and this is a huge
amount to spend when a single customers loyalty is that much cheaper. Recurring
customers will also likely recommend your business and generate leads and new
customers with very little effort on the businesses part. Repeat business will
also lead to increased customer profitability, as customers will become
comfortable buying from you and may make larger purchases.

3.8       Explain
how to set performance indicators and evaluation arrangements that are capable
of measuring returns on investment

Performances indicators are set
depending on specific goals and targets, for example in marketing a goal may be
to increase social media reach by 20% from the same time last year within 3
months, this is also a SMART target as it is specific, increase social media
reach. It is measurable, by 20%. Achievable and realistic as 20% is not an
unreasonable increase. Finally, it is time based as this needs to be achieved
within 3 months. Returns on investment is decided by how well Performance
indicators are met. Within a marketing plan most should be covered as a SMART
target as this will be the performance indicator, whether the goals are met or
not.

4.1       Explain
the importance of conducting the evaluation in accordance with the specification

All targets must be evaluated to know whether they
have been successful or not. Conducting this evaluation will give marketers and
idea of how well the targets have been met and will offer valuable information
that will allow them to improve specification in the future.

4.2       Describe
the factors to be considered in the evaluation of the effectiveness of a
marketing strategy

(On budget, timeliness, achievement of
KPI’s.)

The evaluation should include if the
marketing strategy has stayed on budget and if it was on time as planned. The
KPI’s also need to be evaluated as these are the main objectives if the entire
marketing plan.

4.3       Explain
the strengths and weaknesses of different evaluation method (SWOT analysis.)

A SWOT analysis or Strengths, Weaknesses, Opportunities and threats is
effective at evaluating as it covers all aspects of a normal evaluation. It
will highlight each point so that it can be considered fully.

4.4       Describe
how to identify trends and themes from evaluation data

Trends will become apparent in
evaluation data in a few different ways. Repeated words will signal that this
is something that a lot of customers and potential customers are thinking
about. Along with repeated words key words can be picked out when they are used
in certain contexts, this can also be key phrases.

4.5       Explain
how to ensure the reliability and validity of evaluation data

Evaluation data can be gathered first hand or purchased second hand from
data collection companies. Regardless of how the data is obtained the marketer
needs to understand how it was collected to ensure that it is valid and worth
using.

Reliability is more important than the validity as if the data is not
reliable it cannot be used in the real world and therefore it is not viable,
the data is reliable if the data gathered gives consistent results. Usually
collecting the data using the same method multiple times to see if results are
consistent is enough for reliable data. If the results and data that are
collected is consistent then the method used to gather the data is reliable.

4.6       Explain
how to achieve an acceptable level of statistical confidence

Statistical confidence is based on a few criteria:

·        
Population

·        
Probability and
or percentage

·        
Confidence

·        
Margin of error

Population is the total people that
you want to be applied to the data. This number will depend on the type of
method used to get the data, the resources that the business has as well as the
budget. The amount of people that actively participate in the gathering of
statistics, this is also known as the response rate. The typical response rate
needs to be at around 95% for confidence in the results. The margin of error is
the amount of room that is given to the percentage of an answer so that an
estimate can be made on what the main answer would be.

4.7       Explain
how to address critical issues revealed by evaluation

Critical issues should be addressed by
setting targets to better the results next time, action should be taken to
improve the issue immediately.

4.8       Explain
the importance of justifying recommendations and conclusions with evidence

Recommendations and conclusions can be
wrong, so it is extremely important to provide evidence to back them up. Use
data that has been collected that can justify the recommendations and
conclusions.

4.9       Explain
the use of impact analysis in the evaluation process

It is a simple way to analyse and evaluate and will
often highlight new opportunities. However, it can be too simple and can often
result in too much data as well as taking up a lot of time. It could take up a
lot of a businesses time and give them useless results or it could highlight
potential opportunities.

4.10     Explain
the importance of marketing to the achievement of business objectives and
strategies

The marketing strategy is key to the
achievement of a business due to its ability to focus and a direct it. It also
saves business money in the long run as they are only trying to attract the
right customers and separates a business from its competitors. It is also the
main communication between business and customer.

4.11     Describe
the links between corporate social responsibility and marketing strategies

Attracting a diverse and responsible
customer base is key within marketing strategies. Helping the community via
volunteering or mentoring is a responsibility that marketing strategies must
include and must be seriously taken into consideration.