An in-depth summary of the grade 12 Marketing chapter; summary made using the Consumo Business Studies Grade 12 Learner Book. These notes got me a distinction in business studies with an average of 87%!
Definition: marketing can be defined as the ongoing activities of the business to reach the target market (LSM) and the methods the business utilizes to
connect and engage with its target market.
• Purpose: to convince the market of the value of the products and/or services, with the aim of selling these products or services and making a profit
1. Role of marketing as part of the overall business strategy:
1.1.Strategic role of marketing:
• Before we can understand the strategic role of marketing, it is important to recognize that strategic planning drives the overall performance of the
business
• strategic planning involves:
► formulating a vision for the business
► translating this vision (expectations of the business) into a mission statement to describe what needs to be done today, to achieve the vision for the
future.
• What is the brand of the business?
► The brand is the perception of the business. Everything, the business does, will have an impact on the perception of the business
• This strategic role of marketing can be summarized as follows: creating and supporting a strong and positive brand identity in the market through a well-
planned and well implemented marketing strategy
• Why is marketing of strategic important as a function of a business?
► It enables a business to build a brand in the minds of the consumer and uses this brand to continuously remind customers about their business
► marketing will help to remind consumers about their businesses products and services so that when they need to buy that particular product or service,
it jumps to mind. In short, marketing is used to gain and retain customers
► one of the most powerful tools of marketing communication is to create a marketing buzz around the product or service. This means the business wants
consumers to talk about its product or service. The stronger the awareness of the product or service in the mind of the consumer, the more likely it is
that the brand name will be used for future reference and hopefully this will translate into more sales
► engaging with customers via marketing gives the business the opportunity to listen to the customer's feedback and helps the business to build a stronger
brand
1.2. Formulating the marketing strategy:
• When planning the marketing strategy, three basic, but different approaches emerge:
► Some businesses focus all their energy on marketing the overall brand of the business, while spending little time and effort on marketing individual
products or services. LG home appliances is an example in this category as well as apple and Nike
► other businesses may choose to focus their marketing efforts on marketing the product or service offering, while not spending too much time on the
overall brand of the business. Examples: famous brands is a franchiser selling different brands such as wimpy, debonair, Steers and Tasha's.
► A third approach may entail an emphasis on both the business and individual products or service offerings. Revlon is an example
• In order to formulate a marketing strategy, a five step process has to be followed:
1. perform an environmental scan
2. define the target market and unique selling proposition (USP)
3. determine the marketing budget
4. implement the marketing mix to achieve the aims of the marketing strategy
5. evaluate the effectiveness of the process and take corrective measures when necessary
1. Perform an environmental scan:
• The overall market scope is investigated by performing an environmental scan: an environmental scan involves looking at both the external and internal
environments
Marketing (Grade 12) Page 1
, External analysis:
• Focuses on the relevant external elements that may affect the overall performance of the business/brand
• It is important that the business identifies possible opportunities and threats as part of the strategic marketing plan in order to assist the possible impact
(positive or negative) that these elements may have on the business
1. industry analysis:
• this is the assessment or scanning of the sector that the business operates in
• the purpose is to identify opportunities and threats by using the PESTLE elements
2. competitor analysis:
• gives the business an overall picture of all the competitors in the markets
• it is critical that the business evaluates the competitive strengths and weaknesses in order to determine the effect these could have on the performance
of the business and then adapt the marketing efforts accordingly
• if we consider porters six forces model, competitors may include: level of rivalry in the market, threat of new entrants in the market and substitute
products in the market (indirect competition)
Market mapping:
• a market map is a visual representation of market conditions/trends
• The position of the different competitors hold are plotted on a map to help the business to identify its own position within the marketplace relative to
those of competitors
• once the business knows its own position relative to those of competitors, all marketing efforts (the implementation of the seven P's of the marketing
mix) will be strategically geared towards creating, maintaining or gaining a competitive advantage
3. Customer analysis:
• a business needs to keep in mind the power that the buyer has
• it is important that the business looks at both current and potential customers to see where their needs are not satisfied
• analysing the customer base, will help the business to identify the potential market segmentations (LSM-groupings)
• the LSM tool is one of the most widely used marketing research methods in South Africa. It allows for segmentation of the general public based on 29
variables. These variables are not examinable, but are included for interest sake. They include:
Marketing (Grade 12) Page 2
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