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Module 1
managemenL and

CeLSmarLer CC.

age 2 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:

1ab|e of contents
1A8LL CI CCN1LN1S.......................................................................................................... 2
1. IN1kCDUC1ICN.............................................................................................................. 3
2. MAkkL1ING IN 1nL 8USINLSS LNVIkCNMLN1............................................................... 3
3. MAkkL1ING 1nLN AND NCW ........................................................................................ 6
4. 1nL LACL CI MAkkL1ING IN 1nL 8CAkDkCCM........................................................... 7
S. 1nL 8LNLII1S CI A MAkkL1ING S1kA1LG.................................................................... 8
6. MAkkL1ING CnALLLNGLS ............................................................................................ 10
7. kL CCNCL1S IN MAkkL1ING..................................................................................... 11
7.1 SL11lnC MA8kL1lnC CCALS Anu C8!LC1lvLS ......................................................................... 11
7.2 WAn1S Anu nLLuS............................................................................................................ 13
7.3 1PL MA8kL1lnC Mlx.......................................................................................................... 14
7.3.1 roducL................................................................................................................................. 14
7.3.2 rlce ..................................................................................................................................... 14
7.3.3 lace..................................................................................................................................... 14
7.3.4 romoLlon ............................................................................................................................ 14
7.3.3 1he flfLh : eople................................................................................................................ 14
7.4 vALuL 8CCSl1lCn.......................................................................................................... 13
8. 1nL MAkkL1ING 8UDGL1 ............................................................................................ 17
9. SI1UA1ICN ANALSIS ................................................................................................... 18
9.1 ln1L8nAL Auul1................................................................................................................ 18
9.2 Lx1L8nAL Auul1 ............................................................................................................... 19
10. SUMMAk ................................................................................................................. 19
11. kLILkLNCLS............................................................................................................... 20

age 3 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:
1. Introduct|on
Module 1 serves as an lnLroducLlon Lo markeLlng and key markeLlng concepLs. Popefully, by
Lhe end of Lhe course, you wlll ldenLlfy several new opporLunlLles and markeLlng LacLlcs for
your buslness. 1hroughouL modules 1 Lo 10, you wlll recelve pracLlcal exerclses and
worksheeLs Lo generaLe Lhe conLenL for your buslness' markeLlng sLraLegy. ln Lhe lasL
module, you wlll sLrucLure Lhe varlous exerclses lnLo a comprehenslve markeLlng sLraLegy
and hopefully wlll ldenLlfy several new opporLunlLles and markeLlng LacLlcs for your
buslness. 1herefore, please Lake Lhe Llme Lo compleLe Lhe exerclses where lndlcaLed.
ln Lhls module, you wlll:
8e lnLroduced Lo markeLlng as parL of buslness (secLlon 2).
Learn how markeLlng has changed over Lhe lasL decade (secLlon 3).
Learn more abouL Lhe beneflLs of markeLlng (secLlon 3).
Learn abouL Lhe challenges markeLers face (secLlon 6).
8e lnLroduced Lo some of Lhe fundamenLal prlnclples LhaL apply Lo markeLlng,
lncludlng Lhe markeLlng mlx, Lhe markeLlng budgeL and seLLlng goals and ob[ecLlves
(secLlon 7).
Learn abouL Lhe markeLlng budgeL (secLlon 8).
Learn how Lo perform a slLuaLlonal analysls Lo dlscover where your buslness'
markeLlng plan sLands (secLlon 9).
2. Market|ng |n the bus|ness env|ronment
MarkeLlng ls one of Lhe mosL lmporLanL acLlvlLles ln a buslness, yeL ln many small and
medlum-slzed buslnesses, markeLlng ls lefL behlnd due Lo a lack of resources and Llme. ln
mosL sLarL-up and small buslnesses, Lhe owner fulflls Lhe roles of markeLer, P8 manager and
many oLhers. Lven Lhough Lhe owner reallses Lhe lmporLance of markeLlng, lL always seems
Lo end up lasL on Lhe llsL of prlorlLles. 8lgger buslnesses wlLh an ln-house markeLlng Leam
may lack experLlse ln cerLaln areas, llke onllne markeLlng, or may noL be measurlng lLs
markeLlng LacLlcs. 1hls can lead Lo markeLlng budgeL golng Lo wasLe. ln order Lo grow a
buslness, however, markeLlng plays a cruclal role.
Market|ng ls Lhe soclal and managerlal process whereby lndlvlduals and groups obLaln
whaL Lhey need and wanL Lhrough creaLlng and exchanglng producLs and value wlLh oLhers."
Market|ng management ls Lhe arL and sclence of chooslng LargeL markeLs and bulldlng
proflLable relaLlonshlps wlLh Lhem."
Source: Motketloq ltloclples, 10Lh edlLlon, koLler and ArmsLrong
1he noLes refer only Lo producLs" ln mosL secLlons Lo slmpllfy Lhe explanaLlon process.
Where Lhey refer Lo producLs", please noLe LhaL Lhls ls Laken Lo lnclude boLh servlces and

age 4 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:
1he Amerlcan MarkeLlng AssoclaLlon, one of Lhe largesL ln Lhe world, deflnes markeLlng as
Lhe acLlvlLy and processes for creaLlng, communlcaLlng, dellverlng, and exchanglng offerlngs
LhaL have value for cusLomers, cllenLs, parLners, and socleLy aL large." CreaLlng value for
varlous sLakeholders, and communlcaLlng Lhls value Lo Lhem, ls consequenLly aL Lhe hearL of
markeLlng. MarkeLlng managemenL, ln Lurn, refers Lo Lhe managemenL of all Lhese acLlvlLles
concerned wlLh communlcaLlng value.
When value ls creaLed for sLakeholders (for example, cusLomers, suppllers, compeLlLors and
Lhe medla), relaLlonshlps are formed. Many auLhors propose LhaL markeLlng ls abouL Lhe
managemenL of relaLlonshlps wlLh key sLakeholders, Lhe cusLomer belng one of Lhe mosL
lmporLanL ones. MarkeLlng can, from Lhls perspecLlve, be descrlbed as managlng proflLable
relaLlonshlps wlLh cusLomers. 1hese relaLlonshlps become even more proflLable when
cusLomers reLurn Lo your buslness for repeaL purchases, so bulldlng cusLomer loyalLy should
be on Lop of any buslness' markeLlng llsL.
losLerlng successful relaLlonshlps ls Lhus key Lo successful markeLlng managemenL and
should form a key elemenL of your markeLlng sLraLegy, or overall plan for your markeLlng
acLlvlLles. ln order Lo be successful, your markeLlng sLraLegy needs Lo generaLe exclLemenL
among your LargeL markeL by engaglng wlLh your cusLomers. 1he growLh of lnLerneL
markeLlng plaLforms llke soclal medla makes lL easy for buslnesses Lo sLay ln Louch and
engage wlLh Lhelr cusLomers. ln module 7, you wlll sLudy Lhe elemenLs of an lnLerneL
markeLlng plan ln deLall.
A mlspercepLlon LhaL exlsLs ls LhaL once a markeLlng sLraLegy has been creaLed, mosL of Lhe
work has been done. 1he opposlLe ls Lrue: markeLlng your buslness ls a conLlnuous process,
and lmplemenLaLlon and monlLorlng play a cruclal role ln Lhe success of Lhe markeLlng
sLraLegy. 1he process sLarLs wlLh a slLuaLlon analysls and posslbly even markeL research (you
wlll learn abouL Lhls ln module 2) where Lhe lnformaLlon derlved from Lhe research wlll form
Lhe basls of your markeLlng sLraLegy. 1he lmplemenLaLlon of your markeLlng sLraLegy needs
Lo be conslsLenL and Llmeous. ?ou wlll go Lhrough Lhe process of creaLlng a markeLlng
lmplemenLaLlon calendar ln deLall ln module 9.
lL ls lmperaLlve LhaL all deparLmenLs ln Lhe buslness are lnformed of Lhe deLalls of Lhe
markeLlng sLraLegy and work LogeLher Lo ensure lLs success. 1he markeLlng deparLmenL
creaLes and lmplemenLs Lhe sLraLegy, buL lL needs Lo keep oLher deparLmenLs up Lo speed
on Lhe markeLlng acLlvlLles and promoLlons belng lmplemenLed. All deparLmenLs should also
know whaL messages or brand Lhe buslness wanLs Lo porLray Lo lLs sLakeholders, and
speclflcally lLs cusLomers.
lor lnsLance, even Lhough only one secLlon of your markeLlng sLraLegy ls formally Lasked
wlLh cusLomer relaLlonshlp managemenL, every employee should be a brand ambassador for
your buslness. ln oLher words, Lhey should sLrlve Lo porLray Lhe values, key messages and
brand of your buslness aL all Llmes durlng Lhelr lnLeracLlon wlLh sLakeholders and cusLomers.
1he cusLomer relaLlonshlp managemenL LacLlcs LhaL you deLall ln your sLraLegy need Lo be
1here are no maglc wands, no hldden Lrlcks and no secreL handshakes LhaL can brlng you
lmmedlaLe success, buL wlLh Llme, energy and deLermlnaLlon you can geL Lhere."

uarren 8owse, lounder of ro8logger

age 3 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:
conveyed Lo oLher deparLmenLs. 1he same goes for sales promoLlons LhaL are runnlng: all
employees musL be able Lo communlcaLe Lhe deLalls of currenL promoLlons Lo cusLomers.
1he buslness' employees should form a unlfled fronL, and all deparLmenLs musL work
LogeLher Lo creaLe memorable experlences for cusLomers Lo ensure cusLomer loyalLy and
buslness growLh.
MarkeLlng acLlvlLles do noL Lake place ln lsolaLlon: Lhey occur ln an envlronmenL unlque Lo
each buslness. A buslness' markeLlng envlronmenL comprlses Lhree sub-envlronmenLs.
1he m|cro-env|ronment ls Lhe lnLernal elemenLs LhaL can be conLrolled by managemenL,
such as budgeL, employees and Lhe markeLlng ob[ecLlves of Lhe buslness. Lven Lhough lL ls
markeLlng's role Lo bulld relaLlonshlps wlLh cusLomers, lL cannoL fulfll Lhls role alone. 1he
elemenLs maklng up a buslness' mlcro-envlronmenL need Lo work closely wlLh Lhe markeLlng
deparLmenL Lo dellver superb cusLomer servlce and bulld long-Lerm cusLomer relaLlonshlps.
1he market env|ronment lncludes forces ouLslde Lhe buslness such as consumers,
compeLlLors and suppllers. 1hls envlronmenL can only be parLlally conLrolled by a buslness'
managemenL Lhrough markeLlng and buslness declslons.
1he macro-env|ronment comprlses Lhe exLernal forces LhaL Lhe buslness cannoL lnfluence,
buL LhaL dlrecLly or lndlrecLly lnfluence Lhe buslness. 1hese forces shape opporLunlLles and
pose LhreaLs for Lhe buslness. 1hey lnclude:
Demograph|c env|ronment. 1hls envlronmenL lnvolves people, consumers and
cusLomers of all age groups who lmpacL on a buslness' markeLlng sLraLegles, and
speclflcally how consumers are LargeLed Lhrough markeLlng messages.
Lconom|c env|ronment. 1he economlc envlronmenL comprlses facLors LhaL wlll
lnfluence consumers' purchaslng power. Lxamples lnclude a change ln consumers'
lncome and spendlng paLLerns, where consumers mlghL reduce Lhelr spendlng on
luxury goods durlng an economlc crlsls.
Natura| env|ronment. 1hls lncludes Lhe necessary naLural resources and lncludes
several Lrends:
o ShorLages of raw maLerlal llke waLer, oll and coal
o lncreased polluLlon due Lo llLLerlng and dlsposal of chemlcal wasLe
o lncreased governmenL lnLervenLlon ln Lhe managemenL of resources
o lncrease ln envlronmenLally susLalnable sLraLegles by buslnesses
1echno|og|ca| env|ronment. 1hls envlronmenL lncludes Lhe forces LhaL creaLe new
Lechnologles and consequenLly new producLs and markeLs. Lxamples are M3
players and LableLs llke Apple's lad or Samsung's Calaxy 1ab.
o||t|ca| env|ronment. 1hese are Lhe laws, governmenL deparLmenLs and groups
LhaL affecL buslnesses.
Soc|a| and cu|tura| env|ronment. 1hls envlronmenL lncludes forces LhaL affecL a
socleLy's baslc values, bellefs, percepLlons and behavlours. An example lncludes

age 6 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:
worklng women. 1oday, 71 of moLhers wlLh chlldren under 18 work, buL ln 1973,
fewer Lhan 47 dld. 1hls change has fuelled Lhe markeL for producLs llke ready-
made food or school LransporL servlces, for example.
A buslness' success wlll parLlally depend on managemenL's awareness of Lhese areas and
how changes ln Lhese areas wlll lnfluence Lhelr buslness. 8uslnesses musL be able Lo adapL Lo
Lhe changlng envlronmenL. lor example, lL has been predlcLed LhaL e-commerce ls golng Lo
replace LradlLlonal shopplng by 2023 and LhaL physlcal sLores wlll only become Lhe packers"
of lLems boughL onllne before Lhey are posLed or courlered Lo Lhe cusLomer. Can you
lmaglne how Lhls wlll affecL buslnesses and employmenL flgures?
3. Market|ng then and now
A drasLlc change ln Lhe markeLlng landscape has been broughL abouL malnly by Lhe growLh
of Lhe lnLerneL. 1he markeLlng plaLforms LhaL Lhe lnLerneL lnLroduced (for example, soclal
neLwork slLes) have changed Lhe way markeLlng ls done forever, yeL many buslnesses sLlll
only focus on LradlLlonal markeLlng LacLlcs. 1hls ls parLly because many buslnesses are
lnLlmldaLed by Lhe lnLerneL and Lhe freedom lL glves consumers. 1he mosL lmporLanL change
LhaL Lhe lnLerneL has broughL ls Lhe facL LhaL consumers now have power and access Lo
lnformaLlon. Where markeLlng used Lo be a one-way and conLrolled conversaLlon, Lhe
lnLerneL has glven consumers Lhe ablllLy Lo Lalk back" - Lo buslnesses and Lo oLher
consumers. When consumers have bad brand experlences, Lhey can Lell Lhelr exLended
neLworks Lhrough blog posLs and sLaLus updaLes. ConsequenLly, buslnesses are forced Lo
bulld muLually beneflclal relaLlonshlps wlLh cusLomers. 1hls ls evldenL ln Lhe amounL of
complalnLs on webslLes llke and 8uslnesses musL be aware
of whaL ls belng sald abouL Lhem onllne and musL have a response sLraLegy ln place. ln
module 7, you wlll learn abouL managlng your repuLaLlon onllne.
24 of adulLs have posLed commenLs or revlews onllne abouL Lhe Lhlngs Lhey buy.
1en years ago, a prlnL adverL (for example ln newspapers and on flyers) used Lo produce a
generous amounL of quallLy leads, now lL doesn'L have Lhe same lmpacL. 1he same goes for
radlo and Lelevlslon adverLlslng. 1he reason for Lhe shlfL ls mosLly due Lo Lhe way people
have adapLed Lo deal wlLh belng consLanLly bombarded wlLh adverLlslng messages. Where a
buslness could use push markeLlng wlLh a generlc markeLlng message for all Lhelr ads across
all channels a decade ago and sLlll show growLh, Lhe change ln Lhe markeLlng landscape
requlres brands Lo come up wlLh unlque and hlghly LargeLed markeLlng messages for each
lndlvldual audlence. lL requlres buslnesses Lo really know Lhelr cusLomers and selecL only Lhe
markeLlng channels relevanL Lo Lhelr LargeL markeLs Lo geL Lhe markeLlng message across.
lncreaslngly, mass markeLlng ls Lurnlng lnLo a mass of nlches."
Chrls Anderson, AuLhor of 1be looq 1oll
Consumers are exposed Lo llLerally Lhousands of adverLlslng messages per day, noL all
relevanL Lo Lhelr wanLs and needs. 1hls ls called adverLlslng nolse and, wlLhouL even noLlclng
lL, you are blocklng ouL lrrelevanL and weak markeLlng messages. MarkeLers face Lhe

age 7 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:
challenge of comlng up wlLh unlque and caLchy markeLlng campalgns Lo grab consumers'
aLLenLlon. ull markeLlng sLraLegles enLlce consumers Lo share Lhe markeLlng campalgn's
conLenL wlLh Lhelr neLworks or lnLeracL wlLh Lhe brand on soclal medla - an example of a
brand uslng a pull markeLlng sLraLegy ls nando's.
u|| market|ng ls deflned as a "promoLlon sLraLegy LhaL calls for spendlng a loL on adverLlslng
and consumer promoLlon Lo bulld up consumer demand.
ush market|ng ls deflned as a "promoLlon sLraLegy LhaL calls for uslng Lhe sales force and
Lrade promoLlon Lo push Lhe producL Lhrough Lhe channels" - wheLher lL ls wanLed or noL.
AdapLed from ltloclples of Motketloq, 2006
All of Lhe above pose a challenge Lo markeLers Lo ensure LhaL Lhelr markeLlng messages are
hlghly capLlvaLlng and LargeLed ln order Lo resulL ln leads and sales. A mulLl-channel
approach has been proven Lo lncrease Lhe success raLe of a markeLlng campalgn. 1aklng Lhe
above lnLo conslderaLlon, lL ls clear LhaL markeLers have a pleLhora of new onllne markeLlng
channels Lhey need Lo lnclude ln Lhelr markeLlng sLraLegles - dependlng on whlch ones are
relevanL Lo Lhelr LargeL markeL. MarkeLers need Lo reallse LhaL push markeLlng ls no longer
effecLlve and adapL Lhelr sLraLegles Lo lnclude pull markeLlng Lechnlques.
lf you're llke mosL consumers, you have been Lhe LargeL of lnLruslve markeLlng and a
consLanL barrage of lrrelevanL adverLlslng messages. 1he average Amerlcan sees over 3,000
adverLlslng messages a day. lf you flll ouL a warranLy card, geL dlvorced, buy a home, geL
llsLed ln a school dlrecLory, enLer a sweepsLakes, purchase an lLem from a caLalogue, flle an
lnsurance clalm, or perform a myrlad of oLher everyday acLlvlLles, some company
somewhere makes a record of Lhls facL and sells lL Lo markeLers for proflL."
As menLloned, Lhe lnLerneL shlfLed Lhe power from buslnesses Lo consumers. 1en years ago,
a cusLomer mlghL have Lold a frlend or Lwo abouL bad servlce aL a coffee shop or resLauranL
- now Lhey LweeL abouL lL, posL a sLaLus updaLe on lacebook and some even go so far as Lo
blog abouL lL. 1he LruLh ls, lL has become lncreaslngly harder for buslnesses Lo compeLe ln
Lhe markeL and ensure cllenL loyalLy. 8uslnesses are also regulaLed more sLrlcLly Lo proLecL
consumers from mlsleadlng adverLlslng.
1he Consumer roLecLlon AcL regulaLes Lhe relaLlonshlp beLween buslnesses and consumers
and alms Lo promoLe a falr, susLalnable markeL. 1he AcL deal wlLh maLLers such as falr
conLracLs and how a buslness markeLs producLs and servlces. 8uslnesses may noL markeL ln
a way LhaL ls false, mlsleadlng, fraudulenL or decepLlve, Lhls lncludes mlsleadlng consumers
abouL Lhe prlce or Lerms and condlLlons of a sale. 1he lnsurance lndusLry, for example, musL
wrlLe Lerms and condlLlons and lnsurance pollcles ln plaln, slmple language LhaL ls easy Lo
undersLand. A new revlslon of Lhe Consumer roLecLlon AcL came lnLo force on 1 Aprll 2011
and buslnesses LhaL don'L comply wlLh lL can be flned.
4. 1he p|ace of market|ng |n the boardroom
ln many buslnesses, markeLlng ls seen as a separaLe buslness funcLlon and ls Lherefore noL
lnLegraLed wlLh Lhe whole buslness. 1hls ofLen means LhaL Lhe markeLlng deparLmenL or Lhe

age 8 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:
person responslble for markeLlng works separaLely and does noL provlde poLenLlally valuable
lnformaLlon Lo managemenL. MarkeLlng ls one of Lhe deparLmenLs LhaL acLlvely work Lo
generaLe lncome for a buslness and, because of lLs conLacL wlLh cusLomers, lL ls also Lhe
deparLmenL LhaL has Lhe mosL lnformaLlon and lnslghL lnLo a buslness' markeL. 1hls
lnformaLlon ls lmporLanL for managemenL as lL can ldenLlfy new markeL or producL
MarkeLlng needs Lo feed back lmporLanL lnformaLlon Lo managemenL llke new markeL
Lrends and poLenLlal LhreaLs ln Lhe markeL ln order for Lhe buslness Lo adapL and grow.
CrowLh can lnclude lnLroduclng exLenslons of producLs Lo an exlsLlng producL llne Lo
lncrease markeL share, or developlng a new producL for a new markeL, among oLhers. 1hls
lllusLraLes how lmporLanL conLlnuous markeL research ls Lo markeLers. MarkeL research ls
dlscussed ln module 2.
1he easlesL way for markeLers Lo convey Lhelr markeL knowledge ls Lo have a place ln Lhe
boardroom. ln oLher words, markeLlng managers should be presenL when any blg declslons
are made ln Lhe buslness - even for declslons LhaL are seemlngly noL markeLlng relaLed. 1hls
wlll enable Lhe buslness Lo lnLegraLe lLs varlous buslness funcLlons, maklng sure LhaL all
buslness acLlvlLles move Lowards meeLlng Lhe same buslness goals. MarkeLers need Lo
express Lhe resulL of Lhelr markeLlng efforLs ln a sLaLlsLlcal way ln order for lL Lo be relevanL
Lo managemenL - for lnsLance, Lhe adverLlslng campalgn cosL 8100,000 and resulLed ln sales
of 8273,000. ln module 9, we wlll look aL how markeLlng LacLlcs can be measured and how
reLurn on markeLlng lnvesLmenL can be calculaLed. 8y lnLegraLlng buslness, brand and
markeLlng sLraLegles, a buslness can lncrease proflLablllLy, markeL share and cusLomer
S. 1he benef|ts of a market|ng strategy
A markeLlng sLraLegy ls a process or model LhaL allows a buslness Lo focus llmlLed resources
on Lhe besL opporLunlLles Lo lncrease sales and Lhereby achleve a susLalnable compeLlLlve
advanLage. 1he markeLlng sLraLegy should be allgned wlLh Lhe buslness' goals Lo ensure LhaL
Lhese goals are aLLalned.
WhaL ls Lhe dlfference beLween markeLlng sLraLegles and markeLlng plans and LacLlcs? A
markeLlng sLraLegy provldes Lhe hlgh-level rules" LhaL dlrecL your markeLlng acLlvlLles. 1he
dlfferenL markeLlng acLlvlLles are porLrayed ln Lhe followlng flgure.

I|gure 1: MarkeLlng sLraLegy Lrlangle (source:

age 9 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:
MarkeLlng managers should sLarL by looklng aL Lhe buslness goals and decldlng whlch
markeLlng sLraLegy wlll besL achleve Lhem. 1hereafLer, markeLlng managers declde whlch
prlce, producL, place, promoLlon sLraLegles and LargeL markeL wlll besL achleve Lhe
markeLlng sLraLegy. 1hese elemenLs are referred Lo as Lhe markeLlng mlx (see secLlon 7.3).
When Lhe opLlmal markeLlng mlx elemenLs have been selecLed, markeLlng managers wlll
creaLe unlque markeLlng messages for each producL or servlce. 1he markeLlng manager wlll
Lhen use dlfferenL LacLlcs Lo reach Lhe LargeL markeL wlLh Lhese messages.
1here are numerous markeLlng sLraLegles LhaL a buslness can be follow Lo achleve buslness
and markeLlng goals. A few generlc markeLlng sLraLegles, for example, are Lhose based on
your markeL share:
Leader: MarkeLlng sLraLegles followed by markeL leaders or buslnesses LhaL have
Lhe largesL markeL share, for example, Coca-Cola.
Cha||enger: MarkeLlng sLraLegles where buslnesses sLrlve Lo become Lhe markeL
Io||ower: MarkeLlng sLraLegles by buslnesses LhaL beneflL from noL belng Lhe
markeL leaders, for example, epsl.
N|cher: MarkeLlng sLraLegles for smaller, more deflned or narrower LargeL markeLs.
MarkeLlng sLraLegles can also be based on a buslness' compeLlLlve advanLage:
roduct d|fferent|at|on: MarkeLlng sLraLegles based on producL beneflLs LhaL are
new or unlque ln Lhe markeL.
Cost |eadersh|p: MarkeLlng sLraLegles based on producL prlclng.
Market segmentat|on: MarkeLlng sLraLegles based on Lhe unlque needs and wanLs
of Lhe speclflc markeL segmenL LhaL you wlll sell your producL or servlce Lo.
A well-LhoughL-ouL markeLlng sLraLegy LhaL ls lmplemenLed Llmeously can help you ldenLlfy
new markeLlng channels, flnd markeLlng opporLunlLles and focus on nlche LargeL segmenLs
wlLhln your broader markeL. ln module 2, you wlll focus on markeL research and how you
should go abouL ldenLlfylng nlche segmenLs wlLhln a markeL.
8y now, you wlll reallse LhaL markeL research plays an lmporLanL role ln puLLlng LogeLher
your markeLlng sLraLegy. MarkeL research wlll also help deLermlne Lhe demand for your
producL and wlll ldenLlfy oLher key players ln Lhe markeL LhaL you have Lo keep an eye on.
SWC1 ls Lhe acronym for sLrengLhs, weaknesses, opporLunlLles and LhreaLs. A SWC1 analysls
ls deflned as "an examlnaLlon of Lhe lnLernal envlronmenL of a flrm (mlsslon, ob[ecLlves,
sLraLegles, resources, Lrends, eLc.) Lo ldenLlfy parLlcular sLrengLhs and weaknesses, and lLs
exLernal envlronmenL (demographlc, economlc, Lechnologlcal, soclal and culLural, legal and
pollLlcal, and naLural forces) Lo ldenLlfy parLlcular opporLunlLles and LhreaLs."

age 10 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:
As parL of creaLlng your markeLlng sLraLegy, you wlll conducL a SWC1 analysls LhaL wlll
analyse your buslness' sLrengLhs and weaknesses and how Lhese can be lmproved Lo
enhance your advanLage over compeLlLors. 1he SWC1 analysls wlll also ldenLlfy
opporLunlLles and LhreaLs for your buslness. 8y dolng a SWC1 analysls for your maln
compeLlLors, you are able Lo ldenLlfy whlch areas you need Lo lmprove ln order for your
buslness Lo compeLe more effecLlvely (based on compeLlLors' sLrengLhs) and hlghllghL areas
LhaL you should focus on for lmproved compeLlLlve advanLage (based on compeLlLors'
weaknesses). ?ou wlll learn abouL analyslng compeLlLors ln module 3.
Cne of Lhe lmporLanL parLs of a markeLlng sLraLegy ls Lhe secLlon LhaL descrlbes how you are
golng Lo aLLracL and reLaln new cllenLs and bulld sLronger and more proflLable relaLlonshlps
wlLh exlsLlng ones. SelecLlng Lhe rlghL markeLlng LacLlcs Lo grow your buslness and bulld
long-Lerm relaLlonshlps wlLh your cusLomers wlll be dlscussed ln modules 6 Lo 9.
6. Market|ng cha||enges
new Lechnology, Lhe recesslon and markeL flucLuaLlons - Lhese are some of Lhe lssues LhaL
pose challenges Lo markeLers. lL's noL only markeLers ln small buslnesses LhaL sLruggle wlLh a
lack of resources, markeLers ln all slzes of buslnesses face a pleLhora of challenges, some
more presslng Lhan oLhers. 1hese challenges can lnclude:
8udgeL resLralnLs (ln many sLarL-up, small and medlum buslnesses, Lhe markeLlng
budgeL ls an ongolng problem)
lnLroducLlon of new Lechnology
Changes ln Lhe markeL, llke Lhe enLrance of new compeLlLors
Low cusLomer loyalLy and a decllnlng percenLage of repeaL purchases
uecreaslng sales
AbsenL markeLlng plan or lnconslsLenL markeLlng lmplemenLaLlon
ln some small and medlum-slzed buslnesses, all of Lhe challenges menLloned can be
appllcable. A lack of resources (llke budgeL and a capable markeLlng manager) can lead Lo
Lhe buslness falllng behlnd and loslng markeL share.
AnoLher ma[or challenge for markeLers ls, Where Lo sLarL?" 1he flrsL sLep Lo answerlng LhaL
quesLlon ls Lo look aL Lhe Lwo maln goals every buslness should have. 1hey are:
1. 1o aLLracL new cusLomers
2. 1o reLaln currenL cusLomers
1hese goals can be expanded Lo lnclude more speclflc markeLlng ob[ecLlves and you wlll
learn Lo seL markeLlng goals and ob[ecLlves laLer ln Lhls module. lf posslble, a buslness should
alm Lo sell oLher producLs ln Lhelr producL porLfollo Lo currenL cusLomers (known as cross-
sell) Lo lncrease proflLablllLy. lL ls also lmporLanL Lo remember LhaL lL ls easler Lo reLaln

age 11 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:
currenL cusLomers Lhan Lo lncrease your cusLomer base. 1herefore, cusLomer relaLlonshlp
managemenL should play a cruclal role ln Lhe markeLlng sLraLegy.
uLLlng LogeLher a comprehenslve markeLlng sLraLegy can be daunLlng. 1hroughouL Lhls
course, you wlll look aL Lhe mosL lmporLanL elemenLs of a markeLlng sLraLegy and you wlll be
gulded Lo creaLe a unlque sLraLegy LhaL wlll glve you Lhe hlghesL reLurn on lnvesLmenL for
your markeLlng rand. unlque" ls speclfled because so many buslnesses purely copy whaL
Lhelr compeLlLors are dolng and expecL lL Lo work and show reLurn on lnvesLmenL for Lhem.
1hls course wlll help you creaLe a unlque markeLlng sLraLegy LhaL besL sulLs Lhe needs of
your buslness.
Cne of Lhe keys Lo belng successful ln markeLlng ls undersLandlng your LargeL markeL and
Lhelr needs. 8y dolng a proper analysls of your LargeL markeL and ldeal cusLomer, you wlll be
able Lo ldenLlfy whaL appeals Lo Lhem and creaLe LargeLed markeLlng messages. lL wlll
requlre some creaLlvlLy, buL you wlll be able Lo use your research lnformaLlon from module 2
Lo creaLe unlque and caLchy markeLlng messages LhaL wlll enLlce and engage your
cusLomers. llrsL, here ls a brlef overvlew of some key concepLs ln markeLlng.
7. key concepts |n market|ng
7.1 Sett|ng market|ng goa|s and ob[ect|ves
?our markeLlng goals and ob[ecLlves seL Lhe pace for your markeLlng sLraLegy. 1he words
goals" and ob[ecLlves" are someLlmes used lnLerchangeably, buL Lhey should noL be
confused as Lhey have Lwo very dlfferenL meanlngs. 8oLh are Lhlngs you wanL Lo achleve, buL
one can be measured and Lhe oLher noL. 8elow ls a Lable Lo explaln Lhe dlfferences beLween
goals and ob[ecLlves.
Goa|s Cb[ect|ves
lndlcaLes where you wanL Lo go, for lnsLance,
you wanL Lo be Lhe markeL leader ln Lhree
ueLalls how you are golng Lo reach your goal,
for lnsLance by lncreaslng sales by 23 every
CannoL be measured Can be measured
lL helps Lo Lhlnk of goals as Lhe flnlsh llne and ob[ecLlves as Lhe sLeps you're golng Lo Lake Lo
cross lL. lf you have varlous deparLmenLs wlLhln your buslness, you can have overall goals for
Lhe buslness and dlfferenL ob[ecLlves for each deparLmenL Lo reach Lhe buslness' goals.
When seLLlng your markeLlng ob[ecLlves, use Lhe SMA81 rule Lo ensure you are seLLlng goals
LhaL are achlevable and can be measured. SMA81 sLands for:
uon'L be afrald Lo geL creaLlve and experlmenL wlLh your markeLlng."

Mlke volpe, Chlef MarkeLlng Cfflcer, PubspoL

age 12 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:
Spec|f|c: 8e preclse and deLalled abouL whaL you wanL Lo achleve.
Measurab|e: 1he ob[ecLlve should be quanLlLaLlve and expressed ln numbers.
Amb|t|ous: uon'L seL low goals [usL so LhaL Lhey can be reached.
kea||st|c: Coals should be aLLalnable, so flnd Lhe rlghL balance beLween seLLlng
goals Loo hlgh or low.
1|med: SeL a speclflc Llme perlod ln whlch Lhe ob[ecLlve musL be achleved.
1aklng Lhe above lnLo conslderaLlon, you can sLarL Lo seL markeLlng goals for your markeLlng
sLraLegy. ?ou can have longer-Lerm goals (become Lhe markeL leader wlLhln flve years) and
shorLer-Lerm goals (lncrease sales ln Lhe nexL slx monLhs). MarkeLlng goals can lnclude:
lncreaslng proflL
lmprovlng cusLomer saLlsfacLlon
lncreaslng publlclLy
Lxpandlng Lhe cusLomer base
lncreaslng Lhe converslon raLe on your webslLe
As dlscussed, ob[ecLlves lndlcaLe how you are golng Lo reach your goals and Lhey can also be
measured. 1herefore, Lhe markeLlng ob[ecLlves for Lhe abovemenLloned goals can be:
Increas|ng prof|t
o lncrease proflL by 13 ln Lhe nexL 12 monLhs.
Improv|ng customer sat|sfact|on
o 8educe Lhe number of complalnLs by 10 over Lhe nexL 12 monLhs.
Increas|ng pub||c|ty
o 8ecelve a mlnlmum of flve non-pald-for arLlcles placed ln relevanL medla
over Lhe nexL slx monLhs.
Lxpand|ng the customer base
o lncrease Lhe cllenL base by 10 over Lhe nexL 12 monLhs.
Increas|ng the convers|on rate on your webs|te
o lncrease Lrafflc Lo Lhe webslLe by 23 wlLhln Lhe nexL 12 monLhs.
o lncrease Lhe converslon raLe on Lhe webslLe by 13 wlLhln Lhe nexL slx
When seLLlng your markeLlng goals and ob[ecLlves, don'L Lake your markeLlng budgeL lnLo
accounL. ?ou wlll facLor ln your budgeL aL a laLer sLage, malnly because your budgeL should

age 13 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:
noL affecL Lhe goals you wanL Lo achleve. Some of Lhe quesLlons Lo ask whlle seLLlng your
goals and ob[ecLlves are:
Pow long dld lL Lake me Lo achleve my goals ln Lhe pasL? uld lL happen ln Lhe
requlred Llme frame?
Where do l wanL Lo go wlLh my buslness?
Pow do l wanL Lo poslLlon my buslness ln Lhe markeL?
WhaL are Lhe overall goals of Lhe buslness, and how can markeLlng help achleve
Lach buslness has a unlque seL of markeLlng goals and ob[ecLlves, whlch wlll be dlscussed
laLer ln Lhls module. now LhaL you know Lhe dlfference beLween seLLlng goals and ob[ecLlves
for your markeLlng sLraLegy, lL's lmporLanL Lo undersLand Lhe needs and wanLs LhaL drlve
consumers Lo buy producLs or servlces from a speclflc buslness.
7.2 Wants and needs
lL's lmporLanL Lo undersLand why consumers buy a cerLaln producL. Consumer acLlon ls
based on needs, wanLs or demands and Lhls forms Lhe basls of markeLlng.
Needs ls a sLaLe of felL deprlvaLlon.
Wants ls Lhe form Laken by a human need as shaped by culLure and lndlvldual personallLy.
Demands are human wanLs backed by buylng power.
Source: Motketloq ltloclples, 10Lh edlLlon, koLler and ArmsLrong
needs are baslc Lhlngs llke food, cloLhlng, waLer and shelLer. A need cannoL be creaLed by
markeLers. WanLs, on Lhe oLher hand, are Lhlngs LhaL are noL necessary for survlval buL are
deslred, and are Lherefore creaLed by markeLers. An example of Lhls ls Lhe wanL Lo drlve a
8MW, Lo wear uolce and Cabbana or Lo sLay ln a cerLaln suburb. uemand ls when wanLs are
backed by purchaslng power. An example of demand ls a consumer who wanLs Lo drlve a
8MW and has Lhe flnanclal capablllLy Lo do so.
1he markeL ls exLremely compeLlLlve, wlLh every brand Lrylng Lo creaLe wanLs and demands.
ln Lhe process of developlng your markeLlng sLraLegy, you are golng Lo deLermlne how you
wlll creaLe wanL and demand for your producL or servlce by dlfferenLlaLlng lL from
compeLlLors'. 1hls means LhaL you flrsL have Lo know your LargeL markeL and undersLand
why Lhey buy your producL or servlce. 1here may be many beneflLs relaLed Lo uslng your
producL or servlce, buL one or Lwo beneflLs wlll sLand ouL for each cusLomer. 1hese beneflLs
are Lhe reason why Lhey use your offerlng and noL a compeLlLor's.
8y knowlng whaL speclflc role your producL or servlce fulflls for dlfferenL segmenLs ln your
LargeL markeL, you can creaLe LargeLed markeLlng messages LhaL appeal Lo each segmenL.
lor lnsLance, assume you sell a cleanlng producL. Cne cusLomer, a female, mlghL use lL
speclflcally ln Lhe klLchen because lL easlly cleans greasy surfaces whlle anoLher cusLomer,
also female, mlghL use lL for all-purpose cleanlng ln Lhe house. 1he markeLer for Lhe cleanlng

age 14 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:
producL needs Lo know who Lhe cusLomer ls and how Lhey are uslng Lhe producL ln order Lo
creaLe markeLlng messages LhaL lnclude uslng Lhe producL ln Lhe klLchen as well as messages
LhaL promoLe Lhe producL as an all-ln-one cleanlng soluLlon. ln addlLlon, you also need Lo
know how many consumers are wllllng and have Lhe purchaslng power Lo buy your producL.
7.3 1he market|ng m|x
?our markeLlng mlx ls Lhe Lools you wlll use Lo creaLe a response from your deslred LargeL
markeL. 1he markeLlng mlx comprlses Lhe four s" of markeLlng and lndlcaLes whaL your
buslness conslsLs of. 8ecenLly, a flfLh " - people - has been added Lo Lhe orlglnal four.
7.3.1 roduct
roducL deflnes whaL you sell, wheLher lL's a producL, servlce or person (for lnsLance a
celebrlLy). As Lhe markeLer, you need Lo know Lhe beneflLs and dlfferenLlaLlng characLerlsLlcs
of your producL ln order Lo markeL lL effecLlvely.
7.3.2 r|ce
1hls ls Lhe amounL of money buyers have Lo pay for your producL and lncludes any
promoLlonal dlscounLs, free samples and so forLh. When seLLlng a prlce for your producL,
Lhere are many facLors Lo keep ln mlnd, lncludlng how much your compeLlLors are charglng,
how much lL wlll cosL Lo produce your producL, how much wlll lL cosL Lo geL your producL Lo
cusLomers and so forLh. rlclng sLraLegles are dlscussed ln module 4.
7.3.3 |ace
1hls ls where cusLomers can buy your producL, and can elLher be a physlcal or an onllne
sLore. lor Lhls , lL ls lmporLanL LhaL you Lhlnk abouL where your cusLomers are and how
Lhey are golng Lo geL hold of your producL. ?our producL has Lo be easlly accesslble and, Lo
achleve LhaL, you mlghL need Lo parLner wlLh dlsLrlbuLors or offer a dellvery servlce.
7.3.4 romot|on
romoLlon comprlses Lhe markeLlng and sales acLlvlLles LhaL communlcaLe Lhe beneflLs of
Lhe producL or servlce Lo Lhe LargeL markeL whlle speaklng Lo a cerLaln need wlLhln Lhe
LargeL markeL. 1he alm of promoLlon ls Lo:
ersuade people Lo wanL your producL
Convlnce Lhem Lo buy your producL or servlce (creaLe demand)
SeL you aparL from compeLlLors
7.3.S 1he f|fth : eop|e
MosL buslnesses are bullL on people, wheLher Lhey are employees who work behlnd Lhe
scenes on manufacLurlng Lhe producL or your sales force who sells Lhe producL. eople form
an lmporLanL parL of Lhe markeLlng mlx and as parL of your markeLlng sLraLegy you should
plan on how you are golng Lo grow and Lraln employees Lo become ambassadors for your

age 13 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:
buslness. lL ls lmperaLlve Lo hlre employees LhaL are sulLed for your brand and Lo manage
and menLor Lhelr growLh.
1he flve s, llsLed above, are used for buslnesses LhaL offer producLs, whereas servlces
markeLers ofLen prefer Lo use seven s": Lhese also lnclude process and physlcal evldence.
rocess descrlbes Lhe process of dellverlng Lhe servlce and Lhe consequenL experlence LhaL
Lhe cusLomer had and Lhls ls cruclal Lo cusLomer saLlsfacLlon. hyslcal evldence means
glvlng cusLomers reason Lo make use of your servlce. 8emember LhaL a cusLomer cannoL
experlence a servlce before lL's dellvered, so you have Lo provlde Lhem wlLh evldence LhaL lL
ls worLh Laklng a rlsk and maklng use of your servlce. Lvldence can lnclude case sLudles,
LesLlmonlals and so forLh. lL's lmporLanL Lo remember LhaL when dellverlng a producL, you
are also dellverlng a servlce Lhrough your lnLeracLlon wlLh Lhe cusLomer. use Lhe markeLlng
mlx worksheeL lncluded ln Lhe readlng maLerlal for Lhls module Lo gulde you ln deslgnlng
your markeLlng mlx.
1he markeLlng mlx wlll be examlned ln more deLall ln module 6. ln shorL, Lhe varlous
elemenLs of your markeLlng mlx wlll be used Lo deslgn your markeLlng sLraLegy along wlLh
your analysls of your LargeL markeL, compeLlLors and lnLernal facLors.
7.4 Va|ue propos|t|on
Lvery producL or servlce ln Lhe markeL offers cerLaln beneflLs and value Lo consumers. 1here
are many players ln any glven markeL and each one offers consumers a dlfferenL value
Va|ue propos|t|on ls Lhe full poslLlonlng of a brand, ln oLher words Lhe full mlx of beneflLs
upon whlch lL ls poslLloned.
Source: Motketloq ltloclples, 10Lh edlLlon, koLler and ArmsLrong
1here are dlfferenL reasons why consumers wlll buy from a buslness. 1hese reasons lnclude:
1he consumer has a need for whaL Lhe buslness ls selllng.
1he buslness dlfferenLlaLe lLself from compeLlLors ln such a way LhaL lL sLand ouL
from all Lhe oLher opLlons.
1he buslness subsLanLlaLes lLs promlses and consumers belleve LhaL lL wlll dellver
on Lhose promlses (physlcal evldence).
MarkeLers should alm Lo comply wlLh all Lhree of Lhe above reasons Lo ensure markeLlng and
buslness success. When you do, you wlll convlnce consumers LhaL Lhey need your producL or
servlce, lLs cosL ls [usLlfled and Lhe rlsk of buylng Lhe producL or servlce from your buslness ls
worLh lL. ?ou also need Lo prove LhaL you can dellver on Lhe promlses made ln your value
proposlLlon Lo aLLracL repeaL cusLomers.
1o deLermlne your producL or servlce's value proposlLlon, Lhlnk abouL lLs unlque beneflLs.
use Lhese beneflLs Lo drafL a value proposlLlon - lL can conslsL of one or a comblnaLlon of Lhe

age 16 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:
Low prlce
8eLLer quallLy
Superb cusLomer servlce
lree dellvery
1he comblnaLlon LhaL you declde on wlll Lake lnLo conslderaLlon your LargeL markeL, Lhelr
reason for buylng your producL and your compeLlLlon (how your producL compare Lo
compeLlLors'). lL ls also lmporLanL Lo be able Lo back up your value proposlLlon wlLh physlcal
evldence. lor lnsLance, lf you clalm LhaL your producL ls Lhe safesL on Lhe markeL, Lhen you
need sLaLlsLlcs Lo back lL up. uslng Lhe physlcal evldence LogeLher wlLh your value
proposlLlon ln markeLlng messages can help Lo convlnce consumers Lo buy your producL. use
Lhe value proposlLlon worksheeL lncluded ln Lhe readlng maLerlal for Lhls module Lo help you
wrlLe a value proposlLlon sLaLemenL for your producL, servlce or buslness.
SmarL brands don'L base Lhelr markeLlng messages purely on aLLrlbuLes or beneflLs of Lhe
producL or servlce LhaL Lhey sell, raLher, Lhey use a sofL sell" Lo creaLe memorable
experlences for consumers and leave Lhem wanLlng more. SofL selllng ls used ln pull
markeLlng sLraLegles where Lhe consumer ls pulled ln by Lhe brand and Lhe markeLlng
message ls noL pushed ouL or forced on Lo consumers. klng !ames, Lhe adverLlslng agency for
Allan Cray, ls excepLlonal aL uslng meLaphors and Lelllng a sLory based on Lhe experlences
cllenLs wlll have when uslng Allan Cray's servlces. 1ake a look aL Lhe prlnL ad below.

I|gure 2: Allan Cray prlnL ad.
noLe how Lhey Lap ln Lo consumers' memorles and nosLalglc sldes and Lhen Lle Lhls lnLo Lhe
servlces Lhey offer. WlLhouL dolng a hard sell or uslng push markeLlng and punLlng Lhelr
value proposlLlon, Lhey effecLlvely convey Lhelr message ln a memorable way.

age 17 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:
As a small or medlum-slzed buslness, you probably can'L afford Lo appolnL an adverLlslng
agency Lo come up wlLh a brllllanL campalgn - buL don'L underesLlmaLe Lhe power of your
creaLlvlLy once you open your mlnd and base your markeLlng message on whaL ls lmporLanL
Lo your LargeL audlence.
?our buslness' value proposlLlon or value poslLlonlng ls also known as your unlque selllng
polnL (uS).
8. 1he market|ng budget
Pow much you should spend on markeLlng wlll be deLermlned by your markeLlng sLraLegy,
how aggresslvely you wanL Lo markeL your producL or servlce and whlch markeLlng LacLlcs
you selecL. 1he markeLlng LacLlcs wlll be selecLed based on how relevanL Lhey are Lo your
LargeL markeL, and dlfferenL LacLlcs have dlfferenL cosLs. lor lnsLance, lL's more cosL effecLlve
Lo run an onllne banner campalgn Lhan Lo place a prlnL ad ln a newspaper. ln mosL small and
medlum-slzed buslnesses, Lhe LacLlcs you wanL Lo use and Lhe LacLlcs LhaL you can use are
dlfferenL due Lo budgeL resLrlcLlons. Powever, Lhe ma[or concern should always be how Lo
reach your LargeL markeL mosL effecLlvely.
1he mosL lmporLanL markeLlng LacLlcs wlll be dlscussed ln modules 6 Lo 9, buL lL ls lmporLanL
Lo seL a monLhly budgeL for markeLlng LhaL you can work wlLh whlle puLLlng Lhe sLraLegy
LogeLher. 8y Lhe end of Lhls course, Lhls flgure wlll change as you learn abouL new markeLlng
channels and LacLlcs LhaL may be beLLer sulLed for your buslness LhaL you have never
consldered before.
?our markeLlng budgeL wlll also be affecLed by Lhe markeLlng maLerlal you already have. lf
you have a webslLe LhaL ls noL up Lo daLe or user frlendly, lL's hlghly advlsable Lo plan for a
redeslgn. A webslLe and cerLaln oLher markeLlng elemenLs requlre a hefLy lnlLlal moneLary
lnvesLmenL buL show reLurn on lnvesLmenL ln Lhe long run.
1here ls unforLunaLely no seL answer for how much your markeLlng budgeL should be. lL
dlffers by lndusLry and by buslness, and ls mosLly deLermlned by whaL you can afford. Whlle
lL's parLly Lrue LhaL you have Lo spend money Lo make money, mosL companles under-spend
on markeLlng as Lhey Lry Lo save money. lf you can obLaln lnformaLlon on compeLlLors'
markeLlng spend, LhaL wlll be a good lndlcaLor for where Lo sLarL. ?ou can also declde on a
percenLage of neL proflL Lo spend on markeLlng, for lnsLance 3, 7 or 10. Cne of Lhe mosL
lmporLanL Lhlngs ls Lo ad[usL your markeLlng budgeL as your buslness grows Lo ensure
conLlnued growLh.
lf you're new Lo markeLlng or have been relylng on organlc growLh up unLll now, you wlll
learn how Lo prlorlLlse markeLlng acLlvlLles based on your budgeL ln modules 6, 9 and 10.
LasLly, when seLLlng Lhe markeLlng budgeL, keep ln mlnd whaL you wanL Lo accompllsh. lf
you wanL Lo lncrease your markeL share, you're golng Lo have Lo adverLlse aggresslvely -
meanlng LhaL your markeLlng cosLs wlll be hlgher.

age 18 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:
9. S|tuat|on ana|ys|s
A slLuaLlon analysls ls conducLed as parL of a markeLlng sLraLegy Lo deLermlne Lhe currenL
slLuaLlon of a buslness' markeLlng and poslLlon ln Lhe markeL among oLhers. lL helps Lo
deLermlne where Lhe buslness sLands aL Lhe momenL, and wlll help Lhe markeLer deLermlne
where Lo sLarL.
An lnLernal audlL looks aL varlous facLors and elemenLs wlLhln Lhe buslness. An exLernal audlL
looks aL facLors llke consumers' percepLlons of Lhe buslness and producL, markeL Lrends,
compeLlLors, opporLunlLles and LhreaLs. Lmployees, co-workers and cusLomers can provlde
valuable lnpuL on Lhls Loo as Lhey may have dlfferenL polnLs of vlew.
9.1 Interna| aud|t
1o complle an lnLernal audlL, perform Lhe followlng sLeps. lnLernal audlLs are usually
complled by managers or owners who have access Lo a loL of lmporLanL buslness daLa, llke
sales flgures and markeLlng plans.
1. uescrlbe your buslness and producLs, and lnclude deLalls on whaL markeLs you
LargeL. noLe any markeLs LhaL you avold for any parLlcular reason.
2. ln Lhe nexL paragraph, shorLly and conclsely descrlbe your buslness' value
proposlLlon or unlque selllng polnL.
3. ln Lhe nexL secLlon, provlde deLall on your buslness' sales sLaLlsLlcs over Lhe lasL
few years, lf Lhls daLa ls avallable. lnclude why lncreases or decreases occurred
(e.g. Lhe recesslon decreased sales or sales lncreased ln one monLh due Lo an
aggresslve promoLlonal campalgn).
4. 1hen focus on your buslness and producLs' sLrengLhs. WrlLe down aL leasL flve
polnLs deLalllng whaL puLs you and your producL ahead of compeLlLors.
3. WrlLe down aL leasL flve weaknesses of your buslness and producL. 1hese are areas
LhaL you need Lo lmprove and LhaL are currenLly reduclng your compeLlLlve
advanLage. lor lnsLance, your cusLomer supporL ls noL up Lo sLandard or your
producL's packaglng ls expenslve and reduces proflLablllLy.
6. llnally, wrlLe down Lhe sLaLe of your buslness' markeLlng. noLe whaL markeLlng
LacLlcs have been lmplemenLed over Lhe pasL year, lf any, and how Lhese LacLlcs
almed Lo convey your producL's value proposlLlon Lo your LargeL audlence. Also
dlscuss Lhe managemenL of your markeLlng (l.e. who ls responslble for lL and how
much Llme ls spenL on lL) and lndlcaLe lf Lhere ls any reason why your markeLlng
acLlvlLles have noL been as successful as Lhey could be. LasLly, noLe how you have
acqulred cusLomers Lo daLe. uld you acLlvely work on generaLlng and converLlng
leads or dld you rely on word of mouLh Lo generaLe leads?

age 19 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:
9.2 Lxterna| aud|t
1he exLernal audlL focuses on facLors ouLslde Lhe buslness LhaL lnfluence Lhe markeLlng
sLraLegy. 1o perform an exLernal audlL, compleLe Lhe followlng sLeps.
1. SLarL off by looklng aL your LargeL markeLs agaln. Co lnLo much more deLall Lhan ln
Lhe lnLernal audlL and ldenLlfy segmenLs wlLhln each LargeL markeL. 1o form
segmenLs, group buyers who purchase your producL for Lhe same reason LogeLher.
lor lnsLance, one segmenL may buy because lL ls dellvered free whlle anoLher
segmenL buys because you offer greaL cusLomer supporL.
2. ln Lhe nexL secLlon, focus on your currenL poslLlonlng sLraLegy. ln shorL, descrlbe
how people see (percelve) your buslness and producL. lf your buslness has
lmplemenLed a poslLlonlng sLraLegy Lhrough pasL markeLlng acLlvlLles, noLe
wheLher lL has succeeded ln creaLlng Lhe deslred percepLlon. lf Lhere ls no
poslLlonlng sLraLegy ln place, wrlLe down whaL you Lhlnk people Lhlnk abouL Lhe
buslness and producL. LxlsLlng cusLomers may provlde valuable lnformaLlon for Lhls
3. nexL, wrlLe a shorL paragraph abouL Lrends lnfluenclng Lhe markeL and buslness.
lor lnsLance, oLher players ln Lhe markeL may have seen success by lmplemenLlng a
soclal medla sLraLegy and Lherefore lncreased Lhelr markeL share, or your buslness
ls affecLed by seasonal changes, for example ln wlnLer sales decrease.
4. LasLly, Lhlnk abouL compeLlLors and whaL opporLunlLles and LhreaLs Lhelr producLs
and markeLlng acLlvlLles presenL Lo Lhe buslness. Are Lhey enLerlng new markeLs
Lhrough an aggresslve markeLlng sLraLegy? Are Lhey lncreaslng Lhelr markeL share
by offerlng a value-added servlce llke free dellvery or cusLomer supporL? 1he
deLalls enLered here wlll ldenLlfy more areas LhaL Lhe buslness musL focus on ln lLs
markeLlng sLraLegy.
1hls hlgh-level slLuaLlon analysls wlll serve as Lhe sLarLlng polnL for a markeLlng sLraLegy and
should glve you a clear ldea of where Lhe buslness sLands and Lhe dlrecLlon lL should move
ln. use Lhe slLuaLlon analysls worksheeL lncluded ln Lhe readlng maLerlal for Lhls module Lo
gulde you ln deslgnlng your hlgh-level slLuaLlon analysls.
10. Summary
?ou should now have a beLLer undersLandlng of Lhe key markeLlng concepLs and whaL ls
needed Lo creaLe a markeLlng sLraLegy. ln Lhls module, you:
Were lnLroduced Lo Lhe role of markeLlng ln a buslness.
Learned more abouL Lhe challenges markeLers face and how Lo overcome Lhem.
Learned Lhe beneflLs of markeLlng and how you can reach your markeLlng goals
Lhrough sLraLeglc plannlng.
Learned abouL wanLs, needs and demands and how Lhey lnfluence consumers'
buylng declslons.

age 20 of 20
1hls course ls presenLed by GetSmarter |1e|: +27 21 447 7363 | Iax: +27 21 447 8344 | Webs|te:
Learned abouL Lhe s LhaL comprlse Lhe markeLlng mlx.
Were lnLroduced Lo Lhe concepL of a buslness' value proposlLlon and how Lo creaLe
ConducLed a hlgh-level slLuaLlon analysls Lo deLermlne Lhe sLaLe of your markeLlng
and buslness.
Learned Lhe dlfference beLween goals and ob[ecLlves and seL lnlLlal markeLlng goals
and ob[ecLlves for your markeLlng sLraLegy.
11. keferences
1. Worklng women sLaLlsLlcs:
2. Amerlcan MarkeLlng AssoclaLlon deflnlLlon of markeLlng:
3. MarkeLlng sLraLegy Lrlangle:
4. AdverLlslng sLaLlsLlcs:
3. Consumer onllne usage sLaLlsLlcs:
6. ueflnlLlon of SWC1 analysls:
7. lnformaLlon on seLLlng an effecLlve markeLlng budgeL:
8. uavld W. Cravens and nlgel l. lercy. 2006. 5ttoteqlc Motketloq (8Lh edlLlon),
McCraw Plll.
9. karel !an Alsem. 2007. 5ttoteqles Motketloq - Ao ApplleJ letspectlve, McCraw Plll.
10. hlllp koLler and Cary ArmsLrong. 2004. ltloclples of Motketloq (10Lh edlLlon),
earson LducaLlon.
11. Wllllam M. LuLher. 2011. 1be Motketloq lloo - now 1o ltepote ooJ lmplemeot lt
(4Lh edlLlon), Amacon.