ΑΣΚΗΣΕΙΣ ΜΑΡΚΕΤΙΝΓΚ

ΠΕΡΙΕΧΟΜΕΝΑ

PEST ANALYSIS………………………………………………………. 2 SWOT ANALYSIS ……………………………………………………. 4 FIVE FORCES …………………………………………………………. 5 PROMOTION MIX ……………………………………………………. 6 PRODUCT LIFE CYCLE ……………………………………………. 8 PRICING STRATEGIES ……………………………………………… 8 PLACE, DISTRIBUTION CHANNEL, ……………………………… 10 ANSOFF’S MATRIX …………………………………………………. 11 BCG MATRIX ………………………………………………………… 13 SEGMENTATION EXERCICE ………………………………………. 15 POSITIONG …………………………………………………………… 16 MARKETING RESEARCH …………………………………………… 18

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1.PEST ANALYSIS

Malaysia - Exercice PEST Analysis

Source: www.odci.gov/ October 2000

Consider the following ODCI information and conduct a PEST analysis.

Government type: constitutional monarchy note: Malaya (what is now Peninsular Malaysia) formed 31 August 1957; Federation of Malaysia (Malaya, Sabah, Sarawak, and Singapore) formed 9 July 1963 (Singapore left the federation on 9 August 1965); nominally headed by the paramount ruler and a bicameral Parliament consisting of a nonelected upper house and an elected lower house; Peninsular Malaysian states - hereditary rulers in all but Melaka, Penang, Sabah, and Sarawak, where governors are appointed by the Malaysian Government; powers of state governments are limited by the federal constitution; under terms of the federation, Sabah and Sarawak retain certain constitutional prerogatives (e.g., the right to maintain their own immigration controls); Sabah - holds 20 seats in House of Representatives, with foreign affairs, defense, internal security, and other powers delegated to federal government; Sarawak - holds 28 seats in House of Representatives, with foreign affairs, defense, internal security, and other powers delegated to federal government

Economy - overview: Malaysia made a quick economic recovery in 1999 from its worst recession since independence in 1957. GDP grew 5%, responding to a dynamic export sector, which grew over 10% and fiscal stimulus from higher government spending. The large export surplus has enabled the country to build up its already substantial financial reserves, to $31 billion at yearend 1999. This stable macroeconomic environment, in which both inflation and unemployment stand at 3% or less, has made possible the relaxation of most of the capital controls imposed by the government in 1998 to counter the impact of the Asian financial crisis. Government and private forecasters expect Malaysia to continue this trend in 2000, predicting GDP to grow another 5% to 6%. While Malaysia's immediate economic horizon looks bright, its long-term prospects are clouded by the lack of reforms in the corporate sector, particularly those dealing with competitiveness and high corporate debt.

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Ethnic groups: Malay and other indigenous 58%, Chinese 26%, Indian 7%, others 9%

Religions: Islam, Buddhism, Daoism, Hinduism, Christianity, Sikhism; note - in addition, Shamanism is practiced in East Malaysia

Languages: Bahasa Melayu (official), English, Chinese dialects (Cantonese, Mandarin, Hokkien, Hakka, Hainan, Foochow), Tamil, Telugu, Malayalam, Panjabi, Thai; note - in addition, in East Malaysia several indigenous languages are spoken, the largest of which are Iban and Kadazan

Literacy: definition: age 15 and over can read and write total population: 83.5% male: 89.1% female: 78.1% (1995 est.)

Telephones: main lines in use: 4.4 million (1998) Telephones - mobile cellular: 2.17 million (1998) Telephone system: international service good domestic: good intercity service provided on Peninsular Malaysia mainly by microwave radio relay; adequate intercity microwave radio relay network between Sabah and Sarawak via Brunei; domestic satellite system with 2 earth stations international: submarine cables to India, Hong Kong, and Singapore; satellite earth stations - 2 Intelsat (1 Indian Ocean and 1 Pacific Ocean)

Radio broadcast stations: AM 56, FM 31 (plus 13 repeater stations), shortwave 5 (1999) Radios: 9.1 million (1997) Television broadcast stations: 27 (plus 15 high-power repeaters) (1999) Televisions: 3.6 million (1997) Internet Service Providers (ISPs): 8 (1999) Merchant marine: total: 361 ships (1,000 GRT or over) totaling 5,000,706 GRT/7,393,915 DWT ships by type: bulk 61, cargo 119, chemical tanker 34, container 55, liquified gas 19, livestock carrier 1, passenger 2, petroleum tanker 57, refrigerated cargo 1, roll-on/roll-off 6, specialized tanker 1, vehicle carrier 5 (1999 est.) Airports: 115 (1999 est.) Airports - with paved runways: total: 32 over 3,047 m: 5 2,438 to 3,047 m: 4 1,524 to 2,437 m: 11 914 to 1,523 m: 6 under 914 m: 6 (1999 est.)

Answer - Malaysia - PEST Analysis

Political Factors

• Controls on immigration • A fairly new country formed in 1957 (Malaysia) and 1963 (Malay, Sabah,

Sarawak, and Singapore) • Parliament and hereditary rulers

Economic Factors

• Recovering from a very severe recession • High government spending • Very low inflation and unemployment • Favorable prediction for growth in the economy • Lack of corporate reform (high corporate debt and competition)

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Socio-cultural Factors

• Mixture of Chinese, Indian, and malay • Variety of religions • Low rates of literacy among women

Technological

• Good national and international lines • A variety of TV and radio stations • ISPs and airports available

Highly Brill Leisure Centre - SWOT Analysis

Exercice: SWOT Analysis.

Perform SWOT analysis based upon the following points:

1. The Center is located within a two-minute walk of the main bus station, and is a fifteen-minute ride away from the local railway station.

2. There is a competition standard swimming pool; although it has no wave machines or whirlpool equipment as do competing local facilities.

3. It is located next to one of the largest shopping centers in Britain. 4. It is one of the oldest centers in the area and needs some cosmetic attention. 5. Due to an increase in disposable income over the last six years, local residents

have more money to spend on leisure activities. 6. There has been a substantial decrease in the birth rate over the last ten years. 7. In general people are living longer and there are more local residents aged

over fifty-five now than ever before. 8. After a heated argument with the manager of a competing leisure center, the

leader of a respected local scuba club is looking for a new venue. 9. The local authority is considering privatizing all local leisure centers by the

year 2000. 10. Press releases have just been issued to confirm that Highly Brill Leisure

Center is the first center in the area to be awarded quality assurance standard BS EN ISO 9002.

11. A private joke between staff states that if you want a day-off from work that you should order a curry from the Center’s canteen, which has never made a profit.

12. The Center has been offered the latest sporting craze. 13. Highly Brill Leisure Center has received a grant to fit special ramps and

changing rooms to accommodate the local disabled. 14. It is widely acknowledged that Highly Brill has the best-trained and most

respected staff of all of the centres in the locality.

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Answer - Highly Brill Leisure Centre - SWOT Analysis

Answer: As you can see Marketing Teacher's answer does not completely agree with yours. This does not mean that you are wrong. It simply means that the results of your analysis are represented in a different way. Points 2 and 10 are difficult to place. Point 2 depends on whether or not wave machines or a whirlpool have a distinct competitive advantage over a competition standard pool. Point 10 is an internal strength and an external opportunity

Analysing the environment - Five Forces Analysis - Exercise

'The market for on-line education'

Place the following eight points onto the five forces model

1. Start up costs are very low 2. Students have access to books, videos, and paper-based distance learning

packs 3. Companies, governments, and self funding students invest huge amounts in

their education 4. There are very few high quality web sites available. 5. Traditional colleges and universities are adapting their products for on-line

learning. 6. Government legislation in the US and Europe encourages on-line learning. 7. The more innovative learning sites give lesson for free just for the love of it. 8. More people with access to the web every second.

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Analysing the environment - Five Forces Analysis - Answer

1. Start up costs are very low (threat of entry - low barriers to entry) 2. Students have access to books, videos, and paper-based distance learning

packs (product-for-product substitution) 3. Companies, governments, and self-funding students invest huge amounts in

education. (High bargaining power of suppliers) 4. There are very few high quality web sites available (high bargaining power of

suppliers) 5. Traditional colleges and universities are adapting their products for on-line

learning (threat of new entrants - learning curve effects) 6. Government legislation in the US and Europe encourages on-line learning

(threat of entry reduced - by legislation). 7. The more innovative learning sites give lesson for free just for the love of it

(threat of entry - differentiation) 8. More people with access to the web every second (Increases competitive

rivalry)

Exercise - Integrating the Promotions Mix

'www.cuttingitshort.com' - The Campaign.

Clarissa Drive-Terrior is one of the new breed of entrepreneurs that have taken advantage of the massive opportunities open to e-businesses. Her idea was to sell travel and flights, theater tickets, and similar products and services, to consumers that need them at very short notice; hence the name cutting it short. WWW.cuttingitshort.com became extremely popular almost immediately. It was so popular that Clarissa decided to float the business. This was also a huge success, with stocks/shares exchanging hands for more than $20.00 each.

Now that the business was a success, it needed a campaign to reinforce its brand attributes in the mind of existing consumers, and generate new ones.

Your task is to integrate the promotions mix to form a campaign for www.cuttingitshort.com.

Use the different elements of the mix which were:

1. Personal Selling 2. Sales Promotion 3. Public Relations 4. Direct Mail 5. Trade Fairs and Exhibitions 6. Advertising 7. Sponsorship

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Answer - Integrating the Promotions Mix

'www.cuttingitshort.com' - The Campaign.

Personal Selling

It was decided very early on that personal selling did not suit the nature of the business. The other elements of the promotions mix were far better suited to the mass market.

Sales Promotion

A promotion was organized with a national daily newspaper that share the same target consumer. Coupons were put in seven separate issues. Once collected, the consumer would post them to www.cuttingitshort.com for a free mountain bike spanner (a product that was very slow moving anyway).

Public Relations

The company invested around $100,000 in a first rate public relations agent.

Direct Mail

Direct mail was passed up in favor of an e-mail campaign to existing users promoting the recent additions to the site.

Trade Fairs and Exhibitions

The company invested $50,000 in a special stand that used Internet technology to explain the virtues of buying www.cuttingitshort.com's products using the Web.

Advertising

A huge $2,000,000 was spent on an international campaign which used TV, Radio and poster media.

Sponsorship

A decision was made to invest $1,000,000 on sponsoring a round-the-world yacht race.

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The Product Life Cycle - Exercise

Put the following products on the PLC

1. MS-DOS 2. Internet Telephones (WAP) 3. Palmtop computers 4. Sega Dreamcast 5. Sega Megadrive 6. Fax machines.

ANSWER

Pricing Strategies - Exercise

Listed below are a series of pricing strategies/polices. Place them onto the correct section of the matrix.

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1. Wall-Mart launch a new range of own-label soups. 2. Cunard launch two new cruise ships. 3. A cable TV provider moves into a new area and needs to achieve a market

share. 4. Holiday Inns try to fill hotels during winter weekends. 5. Burger King introduces a new range of value meals. 6. Nokia launch a new videophone.

Pricing Strategies - Answer

Here is the 'Pricing Strategies Matrix' with the answers overlaid. Here are the more detailed explanations.

1. Wall-Mart launch a new range of own-label soups. This is an economy brand.

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2. Cunard launch two new cruise ships. The service is high price and high quality with a premium price.

3. A cable TV provider moves into a new area and needs to achieve a market share. The company uses a penetration approach to gain market share. Prices could be increased at a later date.

4. Holiday Inns try to fill hotels during winter weekends. This is an example of 'off peak' pricing.

5. Burger King introduces a new range of value meals. There is a lot of price competition in the fast food market, hence the value approach.

6. Nokia launch a new videophone. This is a new, innovative product that can claim a higher price. Skimming is only an option in the short-term since competition will be inevitable.

Place, distribution, channel, or intermediary - Newtown.

Welcome to Newtown. It sits 25 miles from Commerce Town, 10 miles away from Friesner Airport, and 35 miles away from Poshbury.

Floor-Mart are considering where to put their new store. Their store will sell groceries and provisions 24 hours a day (at a premium price of course).They have three options, each one is considered below. You must recommend a place for the postion of the new store.

1. This site is next to Commerce Town. It has very few inhabitants. However 7,000 people travel there everyday to go to work. It already has a competing store (C). There are plans to build low cost housing in the area.

2. This site is very close to the exclusive Poshbury. It has 1,000 very exclusive, wealthy inhabitants. There is no competition in the locality.

3. This site is close to Newtown. However the 7,000 of the 10,000 citizens of Newtown work in Commerce Town and spend little time at home during the working week. This site site some 5 miles away from Newtown and 4 miles away from the growing Friesner Airport. It is situated on the only road between Friesner airport and Newtown.

Which place would you recommend to Floor-Mart? Justify your recommendations.

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Answer - Place, distribution, channel, or intermediary

Evaluation of the three options:

1. Commerce Town has very few houses. Most of the people that visit it are working. However this could be an advantage if people went shopping during their lunch or after work. There is a competitor in the locality. The future will see a new low cost housing, so there is potential for the long-term.

2. If Floor-Mart were to locate here there would be no competition. The problem with this location is the lack of inhabitants. With Poshbury being so exclusive, further building is unlikely.

3. The final location is has a large population. It is also on the main route between Newtwon and the growing Friesner Airport. People could shop on their return from work since Floor-Mart is open for 24 hours every day

PORTOFOLIO ANALYSIS

Ansoff’s Matrix Exercise

Colorado Ricardo Mountain Bikes.

Colorado Ricardo Mountain Bikes was founded by Ricardo Francisco in 1992. He was a keen cyclist who spent his weekends with many friends cycling and having fun in the mountains of Colorado. He was very competitive and loved to take his bike off-road to test his strength and endurance. However he found that the bikes themselves kept on breaking-down under the strain. So Ricardo designed and built a number of bikes to overcome this problem. Many failed but eventually he came up with the ultimate in off-road bike, which he called the 'Colorado Ricardo'. People liked Ricardo’s bike and he was asked to build and sell them to other cyclists in the Colorado region. It went so well that soon he was able to give up his own job as a DJ to focus on the construction of the bikes. As the mountain bike sport took off, Ricardo’s business grew to produce 10,000 units in 1996. However sales have fallen annually since then and forecasted sales for 2000 are only 4,000 units. Ricardo’s company needs strategies for growth before it is too late. Use Ansoff’s matrix to examine the options for Colorado Ricardo.

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Ansoff’s Matrix Answer

Colorado Ricardo Mountain Bikes.

As you can see there are many strategic options for Ricardo. As a marketer you now have to decide upon which strategy or strategies the company should actually implement. This is based upon a number of factors such as competitive activity, available resources, the good old 'gut feeling', and others.

Boston Matrix Exercice

Manor Way Tools

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Manor Way Tools began life as a small steel company at the end of the 19th Century. It was one of the first companies to put carbon into regular iron to create steel. It was strong and flexible. Their first products were fish hooks which were made from the flexible wire that they were able to produce. Over the years the product portfolio grew to include anything that their operation could turn its hand to such as javelins and railings. Today they focus their operations on the manufacture of tools for the professional, production, and the enthusiastic amateur. Core products include handsaws, drill bits, screwdriver, bowsaws etc.

The tool trade is very complex and competitive. Manor Way's main competitor is Oliver Tools. They are the market leader in many similar areas of the market.

Analyze your product portfolio using the Boston Matrix.

1. Oliver is the market leader in handsaws with 40% of the market. Manor Way has only 25%. There is little house building and nowadays many amateurs use power tools. However is still quite profitable.

2. Manor way still make a range of barbed fish hooks which are now banned in some markets.

3. Both Oliver and Manor Way have invested heavily in gardening tools and expect sales to increase in the future since people have more leisure time and a larger disposable income. Manor Way has 10% of the new market, and Oliver has 15%.

4. Manor Way has a high share in the new market for sandpaper replacement products. Their Wayplate is a steel sandpaper replacement for which they have sole rights. They have 5% of this growing market.

5. What about the javelins?

6.

The Boston Matrix - Answer

Manor Way Tools

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MARKETING PLANS

Internal Marketing - Exercise

Casey Brothers Insurance (CBI) goes to Las Vegas

Casey Brothers Insurance (CBI) was created in 1870 by Orville and Wilbur Casey as a service to the Texas oil industry, specializing in life insurance policies to workers in dangerous occupations. Over the last century its business has expanded massively. It now has over 200 small branches all over the US.

Recently the insurance business has changed tremendously. Customers work in a variety of industries, in many different locations. They tend to shop around for the best quotations and prices. They do not rely upon the convenience of local companies. Many consumers use the Internet to search for appropriate policies at the right price. Andew and Paul Casey, the current Directors of the business, have decided to radically restructure their organization. They have decided to close down all of the 200 small branches. They will be replaced by a Las Vegas based head office with a purpose built call center. The company hopes that many employees will take early retirement, with others accepting the offer to retrain and to move to Las Vegas, a prosperous and expanding city.

Your role is to draw up an internal marketing plan to implement the proposed relocation and call Center.

Internal Marketing - Answer

Casey Brothers Insurance (CBI) goes to Las Vegas Objectives To communicate the long-term benefits of the change to staff by August 2---- Strategy Internal Marketing Execution/Implementation/Tactics

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Tactic Supporters Neutral Opposers Notice Board Y Y Intranet Y Y Video Y Y Y Roadshow Y Y Y CEO presentation Y Team Meeting Y Y Y Newsletter Y Y Y Suggestion Scheme Y Y Application of power Y

Financial Incentive Y Y Y Education Y Y Negotiate Y Satisfaction Survey Y Y Y

Controls/Evaluation Results of satisfaction survey 'visits' to intranet site and use of forum Attendance to CEO presentation Results of suggestion scheme Disciplinary rates Acceptance of any relocation package Acceptance of any redundancies/early retirement.

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Construct a battlemap for the music industry. 'Age group' is one basis for segmentation, you need to select the other. Plot the recordings onto the battlemap.

Nigel Kennedy Craig David Robbie Williams All Saints Paul Simon Phantom Menace Soundtrack Britney Spears INXS Madonna Shirley Bassey Westlife Genisis The Corrs George Michael Mick Jagger Boston Symphony American Beauty Soundtrack Marilyn Manson Titanic Soundtrack

Exercise - Positioning - UK Grocery Retail

Plot the following organization onto a positioning map. UK grocery retailers have been chosen for the purpose of this exercise. If you have no knowledge of them, list eight grocery retailers of whom you have some knowledge or opinion.

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1.Tesco

2 Sainsburys

3.Asda (Wall-Mart)

4.Aldi

5. Spar

6. Marks and Spencer

7. Fortnum and Mason

8. Harrods

The two variables are price and quality

Answer - Positioning - UK Grocery Retaile

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Lesson - Introduction to Marketing Research

Puerto Vallarta Autos

Puerto Vallarta Autos has been in business since 1967. It has always been a successful, professional organization. Since the locality has an economy based mainly upon agriculture, their traditional customer has been the aspiring Mexican consumer, usually business or professional people.

Recently they have noticed that their local market has changed considerably. Puerto Vallarta has become a center for tourism and recreation for Mexicans from Guadalajara and Mexico City, as well as North Americans and Europeans. There are many beach clubs, hotels, apartments, and holiday condos.

Doreteo Dominguez, the sales manager at Puerto Vallarta Autos, feels that the company may have a problem. They do not know who their customer is and hence cannot target advertising.

You are the Account Representative for Punta Mita Marketing Research Associates. Advise Doreteo Dominguez on an appropriate method of marketing research, and describe any advantages and disadvantages of such a method.

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Answer - Marketing Research

Puerto Vallarta Autos

To: Doreteo Dominguez - Sales Manager

From: Account Representative - Punta Mita Marketing Research

Recommendations for Marketing Research Methodology

The most appropriate marketing research method is telephone interview. Telephone interviews have the following advantages and disadvantages: Advantages Can be geographically spread - so we can contact customers from Guadalajara, Mexico, and even North America. Europe is a little too expensive to contact. Can be set up and conducted relatively cheaply. We have a tele-research team set up already. Random samples can be selected. We will purchase a database from the local tourist office and select a random sample. Cheaper than face-to-face interview Disadvantages Respondents can simply hang up. In such a case we will select another respondent from our list. Interviews tend to be a lot shorter. They interviews will be very short and succinct. Visual aids cannot be used. Although they are not really needed for this piece of research. Researchers cannot behavior or body language. This should not prove such a problem.

If the above information has been helpful, please contact me so that I can arrange for the questionnaires to be designed.

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