Qualifi Level 6 BA603: Strategic Marketing Management Assessment Answers

Qualifi Level 6 Diploma in Business Administration

Unit code: H/615/4715
RQF level: 6

Aim of this BA603

This unit aims to make students learn strategic reflection of the issues that arise in marketing management. Here, students will learn about major topics like marketing literature, target marketing, segmentation and even the planning process.

Note: Remember one thing that you do not copy the information from here without changing anything directly in your assignment. If you do so, you will get caught in plagiarism, as this is posted online, and plagiarism detectors will detect it within a few seconds. Plagiarised content has one simple result that is failure, so avoid doing that. You can take help from our experts who will provide you with Qualifi Assignment help at affordable prices.

BA603 Task 1. Be able to build an effective marketing strategy.

AC 1.1 Identify the main types of marketing strategies

Answer:

The next thing we would like to do is to have a closer look at some of the other forms of marketing strategies and how they are employed in order to assist market a product or service to the masses. It should not be remembered that there exists no universal format of marketing strategies; some are more effective than others based on what service is being offered or what product. Remember to experiment so as to enable you to identify the most effective strategy.

• Paid Advertising: This is usually the most widespread tactic of marketers because, in this manner, you place your ads in areas where they can be viewed by thousands of individuals; the only difference is that you need to spend some cash to achieve such positioning. In the past, this strategy was the prerogative of print advertisements, television and radio. Today, you can afford to buy the best positions on the search engines, websites and social media to assist in marketing your business. The same as TV advertising, you will need a good chunk of money before you find yourself frequently in the number 1 position.
  
  
• Relationship Marketing: Relationship marketing focuses on long-term customer interaction, unlike short-term objectives such as the acquisition of new buyers or individual sales. Relationship marketing (also known as customer relationship marketing) has the potential to bring continued business, free word of mouth advertising, and lead generation through customers by establishing powerful, even emotional, customer relationships with a brand.
  
  
• Word Of Mouth: Word-of- mouth marketing involves the situation when individuals discuss their experience with a product or service of a company during their everyday conversations. It is free advertising, and it is instigated by the customer response after receiving good service or coming across an excellent product. This marketing can be influenced by the companies by providing consumers with opportunities to interact and communicate with each other, and also with the business. This plan involves edge marketing, viral marketing, blogging, user-generated content and other social media tricks.
  
  
• Transactional Marketing: The task of selling is one of the most difficult ones, even to the biggest retailers. Nevertheless, under the new marketing techniques, the selling has not been as difficult as it was before. Discounts and big events with shopping coupons allow retailers to stimulate customers to make purchases. It enhances the probability of sales and encourages the target audience to buy the advertised products.
  
  
• Content Marketing: To prosper in this digital age, a firm must have a strong content marketing plan. Content marketing also enables companies to concentrate their attention on the development of content, reaching their target audience more successfully, and quantifying the outcomes of their campaign to make the adjustments where needed. It is an excellent way of trying to inform, entertain and engage your target audience.
  
  
• Public Relations Marketing: Public relations marketing is a position that aims at using PR methods to influence the opinion of the people in a way that builds trust and creates a positive image of an organisation or a company. PR is also utilised to target specific groups of people and support other marketing strategies like advertisements, web marketing or direct mail campaigns.
  
  
• Takeaway: The number of other marketing tactics that you can employ to assist in enhancing your advertisement is numerous. Most of the strategies listed above will be effective whether you want to get more people talking about your company, you want to sell more products or keep people loyal to your company. Adequate research and a plan of action should be done before getting into these various strategies. 

AC 1.2 Conduct a market analysis for the organisation

Answer:

It is necessary to clear the ground for success before immersing oneself in the analysis of the market. The following are the main steps to be followed to prepare a market analysis:

• Have Specific Objectives: Have clear goals and objectives of the analysis. Know what you need to accomplish. As an illustration, in case you intend to venture into a new market, your intention may be to find out the market demand and competition.
  
  
• Find Target Audience: It is important to know your audience. Determine the demographic, preferences and behaviour of your target market. This piece of information will influence how you collect data.
  
  
• Assemble Resources: The market study needs information, infrastructure, and skills. Make sure that you have the necessary resources. This may involve allocation of funds to research instruments, employment of analysts or outsourcing of data gathering.
  
  
• Take into account Ethical Concerns: Ethical rules are a major factor in market analysis. Make sure that your data collection procedures and data analysis procedures are ethical and do not violate privacy and confidentiality.

AC 1.3 Use the market analysis to build a marketing strategy for the organisation.

Answer:

Market analysis is important in the formation of an effective marketing strategy as it will give in-depth information on customers, competitors and the market conditions. Through the results of the market analysis, an organisation can make sound marketing choices, which will make it more competitive and enhance its performance.

• Learning Customer Needs and Behaviour.
• The analysis of the market assists the organisation in determining:
• Who the target customers are
• Their requirements, tastes and purchasing behaviour.
• Issues that would affect their buying choices.

The information enables the organisation to design products and services that satisfy the expectations of the customers and also communicate better about value. As an illustration, when it is discovered that customers like purchasing online, the marketing strategy can be centred on the digital field more than the physical shops.

1. Target market Segmentation.

With the help of market analysis, the organisation can divide the market into segments depending on:

• Demographic variables (income, age, occupation)
• Geographic location
• Customer lifestyle behaviour.

Out of these segments, the organisation picks out the best target markets or the most profitable ones. This guarantees that marketing resources are targeted at the highest likelihood of customers purchasing, making the strategy cost-effective and efficient.

2. Analysing Competitors

Market analysis will give an insight into competitors:

• Pricing strategies
• Product features
• Promotional methods
• Strengths and weaknesses

When the organisation learns about its competitors, it will be better in the market. As an example, it can decide to compete based on price, quality, customer service or innovation based on an existing gap in the market.

3. Creating a Precise Company Niche.

Depending on customer and competitor analysis, the organisation would be able to establish a definite market position. This determines how customers are supposed to view the brand of the organisation in relation to its competitors. A solid positioning statement is beneficial in directing the entire marketing and achieving consistency in the channels.

4. Marketing Mix (4 Ps) Design.

The marketing mix is directly informed by market analysis:

• Product: The features and benefits will be created according to the needs of customers that will be identified in the analysis.
• Price: Pricing is decided based on customer readiness to pay and the price of competitors.
• Place: The channels of distribution are chosen according to the places where customers want to buy the products.
• Promotion: The promotional techniques are determined by where the target customers have the best chances of interacting, such as social media, online advertisement, or in-store promotion.

5. Setting Marketing Objectives and Measures.

Market analysis assists the organisation in coming up with realistic marketing goals, which may be holding a larger market or raising brand awareness. It also facilitates the choosing of measures of performance, such as sales increase, customer acquisition and consumer levels, which enable the organisation to keep track of the success of the marketing plan.

AC 1.4 Identify the strengths and weaknesses of the organisation's marketing strategy.

Answer:

Strengths of the Organisation’s Marketing Strategy

• Good knowledge of the Target Market: The marketing strategy of the organisation is founded on the market research, as it allows the organisation to know their needs, preferences and purchase behaviour. This enables marketing messages to be customer-relevant and customer-centric.
  
  
• Clear Brand Positioning: There is also a distinct brand of the organisation, and this assists customers in knowing what the organisation is and how it is differentiated compared to its competitors. Coordination of branding in the marketing channels also enhances recognition and trust.
  
  
• Application of Multiple Marketing Channels: Some of the marketing channels utilised by the organisation include digital marketing, social media, and traditional advertising. This expands coverage and enables the organisation to interact with the varied customer groups.
  
  
• Favourable Competitive Pricing and Offers: The competitor analysis and willingness to pay determine pricing strategies. This assists the organisation to be competitive and at the same time add value to customers.
  
  
• Data-Driven Decision Making: The organisation tracks the performance of marketing based on such key measures as sales, web traffic, and interaction. This allows changes to be made where the strategies are not doing as projected.
  Weaknesses of the Organisation’s Marketing Strategy
  
  
• Limited Personalisation: The promotional plan can be based on en masse promotions as opposed to individual messages. This may lessen involvement, particularly in markets where the customers desire individualistic communication.
  
  
• Excessive dependence on some Channels: There is a possibility that the organisation could rely on a single or two marketing platforms, including social media or web-based advertising. This makes it risky should the channels become less effective or more costly.
  
  
• Budget Constraints: Small marketing funds may limit the organisation's investment in new campaigns, new tools or broader market coverage, which will reduce the overall impact.
  
  
• Lack of Quickness in adapting to the market: The changes in customer trends, technology and competitor activities may not necessarily be adopted promptly by the organisation. This may result in lost opportunities in dynamic markets.
  
  
•  Weak Differentiation Competitive Markets: Marketing messages used by the organisation may not be considered unique in competitive markets, thus it becomes difficult to stand out among other players who have the same product or service.

BA603 Task 2. Be able to develop the marketing plan for effective decision-making

AC 2.1 Identify the purpose of the marketing plan

Answer:

The marketing plan aims at the following:

• To establish the marketing goals of the business clearly, which are in accordance with the corporate mission and vision of the organisation. The marketing objectives represent the point that the organisation would like to be at any given time in the future.
• The marketing plan typically helps in the expansion of the business by articulating suitable marketing plans, including plans for expansion of the customer base.
• Describe the marketing mix, using the 8Ps of marketing: Product, Price, Place, Promotion, People, Process, Physical Evidence and Performance.
• The marketing plan also includes strategies to grow the market share, penetrate new niche markets and raise brand awareness.
• The marketing plan will include an elaborate budget of money and resources that are needed to complete the activities mentioned in the marketing plan.
• The marketing plan is clear in assigning tasks and responsibilities for marketing activities.
• It is significant to identify the business opportunities and devise strategies that may be used to take advantage of the opportunities.
• A marketing plan cultivates review and analysis of the marketing environment, which involves market research, customer needs analysis, competitor analysis, PEST analysis, observation of new business trends and the environment which requires constant scanning.
• A marketing plan incorporates business functions to work in coordination, i.e. sales, production, finance, human resources, and marketing.

AC 2.2 Identify the benefits of developing sales and marketing plan

Answer:

Advantages of Preparing a Sales and Marketing Plan.

A sales and marketing plan gives a systematic method of marketing goods or services and the attainment of business goals. It assists the organisation in organising sales and marketing.

Key Benefits

1.  Clear Direction and Focus: A sales and marketing plan has objectives and priorities. This will help in keeping the sales and marketing teams aligned in the same direction, thus there will be less confusion and waste of effort.

2.  Increased Understanding of Customers: It is planned based on market and customer analysis that assists the organisation to know the needs of customers, their preferences, and their buying behaviour. This results in more meaningful marketing messages and sales.

3. Better Sales and Marketing Co-ordination: A sales and marketing strategy will make promotional activities towards the sales goals. This enhances team-to-team communication and leads that are created by marketing are properly translated into sales.

4. Better Utilisation of Resources: The plan assists in the distribution of budgets, personnel, and time. The available resources are also channelled to the most lucrative markets and channels, minimising the waste and enhancing the returns on the investment.

5. Competitive Advantage: The organisation can differentiate itself by comparing the competitors with the market trend and identifying opportunities. This assists the organisation in reacting to changes in the market in a better way and remains competitive.

6. Quantifiable Performance and Control: The plan has specific performance goals that include sales goals, conversion rates and market share. The measures enable the organisation to keep track of the progress and correct the situation when necessary.

7. Reduced Risk: Strategy planning will assist the organisation to foresee issues that may arise, like demand fluctuations or competition. This helps in minimising the uncertainty and facilitates the good decision-making process.

AC 2.3 Develop the marketing and operational plans for the organisation

Answer:

The establishment of the marketing and operational strategies involves aligning the organisational objectives and targeted strategies. The marketing plan is aimed at target audience identification, SMART goal setting and channel selection. At the same time, the operational plan plots daily activities, resource distribution and schedules in order to achieve such strategies successfully.

1.  Development of marketing plan (Strategic and Tactical)

• Situation Analysis & Research: SWOT analysis (strengths, weaknesses, opportunities, threats) and analysis of the industry/competitors.
• Target Audience and Segmentation: Characterise the buyers (buyer personas) by grading customers into groups (demographics, pain points).
• Goals and Objectives: Have SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals.
• Marketing Mix (4 Ps): Decide Product, Price, Place and Promotion.
• Channels/ Content Strategy: Select the right mediums (social media, search engine optimisation, content) and develop effective messages.
• Budget & Metrics: Determine a realistic budget and establish KPIs (Key Performance Indicators) to gauge the success.

2. Operational Plan (Development, Execution and Implementation).

• Objectives & Key Results: Have specific objectives that are clear and actionable and help to support the strategic marketing.
• Resource Allocation and Team Roles: Allocate certain tasks and responsibilities to the team members; identify the necessary technology/tools.
• Timelines & Milestones: Have a roadmap of campaigns with the help of a Gantt chart or project management tool.
• Risk Assessment: Determine possible hindrances and develop backup plans.
• Monitoring & Optimisation: Track the performance on the KPIs regularly and make changes to the tactics accordingly.

3. Integration and Evaluation

• Align Goals: Make operational capabilities fit in with marketing objectives.
• Monitor Results: Periodically monitor whether marketing is effective or not and redistribute resources when needed.
• Personalised Data: Optimise marketing and operational efficiency with the help of data.

BA603 Task 3. Be able to plan, segment and position the product to achieve the target market

AC 3.1 Identify the buyer behaviour in the consumer market.

Answer:

The buyer behaviour of consumers describes the buying decisions, activities and purchasing behaviours of consumers who purchase goods for personal consumption. It encompasses the whole process of need recognition to post-purchase review, which has a significant impact on the influence of psychological, social, cultural, and personal factors. Major ones are complex, habitual, impulse and dissonance-reducing buying.

• Consumer Buyer Behaviour Aspects: In what ways do consumers psychologically and physically act to find, choose, purchase, consume, and dispose of goods to meet needs?
  
  
• The 5-Stage Decision Process:
  o    Need Recognition: Awareness of an actual state of affairs and a desired one.
  o    Information Search: The search for internal or external information on products.
  o    Evaluation of Alternatives: Comparison of the brands and products in terms of attributes.
  o    Purchase Decision: This is the real act of buying that would depend on the attitudes and the circumstances.
  o    Post-purchase behaviour: Satisfaction or dissonance.
  
  
• There are four major types of buying behaviour.
  o    Complex Buying Behaviour: high involvement, high brand differences (e.g. buying a car).
  o    Dissonance-Reducing Behaviour: High involvement, limited brand difference, emphasising quick purchase.
  o    Habitual Buying Behaviour: Low involvement, limited brand differentiation, motivated by brand familiarity/repetition.
  o    Variety-Seeking Behaviour: Low involvement, great brand differences, consumers change brands just to get variety.
  
  
• Behaviour Influencing Factors.
  o    Cultural: Culture, subculture and social class.
  o    Social: Family, roles, reference groups and status.
  o    Personal: Age, occupation, lifestyle, personality and economic status.
  o    Psychological: Motivation, perception, learning, beliefs, and attitudes.

The knowledge of such behaviours assists marketers to customise strategies, make better products, and affect the buying choices. 

AC 3.2 Assess the role of pricing, distribution and communication in the process of marketing planning.

Answer:

The marketing mix consists of pricing, distribution, and communication, which are essential factors of the marketing mix and are crucial in the process of marketing planning. To be an effective marketer, one has to consider these elements in their interaction with each other to achieve organisational goals and satisfy the customers.

1. The purpose of Pricing in marketing planning.

The pricing has a direct influence on the customer demand, positioning of the brand, and profitability. In marketing planning, prices are evaluated based on customer willingness to pay, competitor prices, and cost structures.

A pricing strategy based on competition will assist the organisation to appeal to the price-sensitive customers and gain market share. Nevertheless, when prices are too low, profitability might be low, whereas high prices might reduce the sales volume. Hence, prices should be such that they compromise the value of the customers and the survival of the business.

Brand positioning is also backed by pricing. Premium pricing will develop an image of superiority, whereas penetration pricing will aid in market entry and expansion. This renders pricing to be a strategic and not a financial decision.

2.  Reaction of Distribution to Marketing Planning.

Distribution helps us to define the way and location where customers may get services or products. Distribution channels are evaluated in marketing planning to guarantee that they align with the customer's purchasing habits and expectations.

Through effective distribution, convenience and customer satisfaction are enhanced through the availability of products. Distribution may be a constraint to reach, delivery time and sales, even with an attractive product and price.

Distribution planning also has an impact on costs and operational effectiveness. Selecting the appropriate combination of online, retail and direct channels assists the organisation in managing the costs and covering as many as possible. As such, distribution decisions should be made to satisfy the customers and the operational potential.

3. The Communication and Its Role in Marketing Planning.

Marketing communication is critical in educating, convincing, and reminding customers about the products or services. In the marketing planning process, the communication strategies are evaluated to make sure that messages are concise, congruent and focused.

Communication will create brand awareness and affect buyer behaviour. Inappropriate communication is possible, which results into lack of engagement or a misunderstanding of the value of the brand. Choosing the right communication media that include digital media, advertising, or sales promotion will guarantee the delivery of messages to the target audiences.

Communication planning is also used to reinforce other marketing mix components by clarifying prices, stocks and product merits. This implementation reinforces the marketing strategy.

4.  Combined Evaluation of Pricing, Distribution and Communication.

The marketing plan requires the collaboration of the pricing, distribution, and communication. The pressure of prices is one way of attracting customers, availability is guaranteed through good distribution, and awareness and demand are created through good communication. As a marketing strategy, a lack of strength in any of the areas may mitigate the strategic performance.

AC 3.3 Analyse the environmental factors in the consumer buying process

External influences or factors affecting the needs recognition, information search, alternatives evaluation and buying decision-making in consumers are the environmental factors. These are the factors that the consumer has little influence over, and the influence on the buying behaviour is profound.

• Economic Factors: Consumer spending behaviour is directly dependent on economic conditions like income level, inflation, rate of employment and cost of living. When the economy is healthy, consumers are more assured and ready to spend money on non-essential or luxury goods. Conversely, in times of economic depression, buyers can postpone purchases, substitute them with less expensive products, or use necessities. This will influence the kind of products to be bought as well as the rate of purchase.
  
  
• Social and Cultural Factors: Consumer values, attitudes and preferences are highly determined by social and cultural environments. Culture defines what is accepted or desired by consumers, and social aspects like family, friends, and social status come into play in the selection of brands and purchases. As an example, the choice of food, clothing, or tech purchase can be affected by family members. It is also possible that the consumers may be influenced by social trends and peer influence to take up new products or brands.
  
  
• Technological Factors: This is due to the changing consumer buying process brought about by advancements in technology. Customers are now turning to the internet, social media and mobile applications to search for information, compare prices, read reviews, and make purchases. Technology has made consumers more informed and less brand-loyal, as they have more awareness and expectations. Companies that do not match the changing technology will be deprived of customers to other firms that provide easier digital experiences.
  
  
• Legal and Political Factors: Consumer confidence and buying behaviour are influenced by government policies, laws and regulations. Trust in the brands is impacted by consumer protection laws, product safety regulations, and advertising standards. Stability in politics may stimulate expenditure, and uncertainty or changes in the regulations may lower consumer confidence. These will be able to influence the perception of risk among the consumers as they make their purchases.
  
  
• Environmental and Ethical Issues: Consumer behaviour is affected more by environmental awareness and ethical concerns. Sustainability, ethical sourcing, and environmental impact are some of the aspects that many consumers have taken into account when making their buying decisions. This is capable of influencing brand selection, particularly among young or environmentally conscious consumers. Customers can also trust and be loyal to organisations that are responsible in their practices.
  
  
• Competitive Environment: The intensity of competition within the market determines the substitution evaluation by the consumers. Having a very competitive environment gives the consumer greater option promoting price comparison and switching of brands. This makes promotions, reviews and brand reputation even more vital in the decision-making process.

AC 3.4 Identify criteria for successful marketing segmentation.

Answer:

Successful marketing Segmentation criteria.

• Measurable: The market size, the purchasing power and the nature of every market segment should be quantifiable. The organisation must be in a position to gather information about the customer numbers, income levels, and buying behaviour to determine the potential of the segment.
  
  
• Accessible: The marketing and distribution channels should be able to access the identified market segments. Without being able to reach or provide products to a segment, targeting the segment will not be effective in an organisation.
  
  
• Substantial: Individual segments should be big and lucrative, such that it warrants marketing and investment. Too small segments might not help to produce adequate returns to justify targeted marketing strategies.
  
  
• Differentiable: The market segments have to react differently to marketing activities. This implies that client needs or preferences in one segment of the market must be different from those of a customer in the other segment, enabling the development of segmentation marketing strategies.
  
  
• Actionable: The organisation should be in a position to create and execute efficient marketing plans for each segment. This is about possessing the resources, skills and capabilities that are necessary to serve the segment well.
  
  
• Stable: The segments must be comparatively fixed with time. When customer needs or characteristics evolve too fast, it is not easy to plan and maintain the long-term marketing strategies.

AC 3.5 Use the marketing approaches in the planning and development of target marketing.

Answer:

Marketing strategies dictate how an organisation chooses and directs to certain segments of customers. Through proper marketing strategies, the organisation would be able to create a target marketing strategy, which has a narrow and precise focus.

1.  Mass Marketing Approach

In mass marketing, the organisation is targeting the entire market using a single marketing message and a single product. 
Planning and development: Use:

• Appropriate in case of similar needs of customers in the market.
• Assists in economies of scale and reduction of costs.
• Uses in the case of simple consumer goods.

This is an easy way of marketing planning that does not necessarily address the unique requirements of targeted groups of customers.
 
2.  Marketing strategy is segmented.

Segmented marketing entails the classification of the market into various segments and creating distinct marketing plans for each segment.
Planning and development: Use:

• Permits customised products, prices, and marketing to each market.
• Enhances consumer satisfaction and interaction.
• Method of targeting lucrative or high-potential segments.

This strategy is very common in rival markets where the needs of customers vary.
 
3.  Niche Marketing Approach

Niche marketing targets a small, well-identified segment that has specific needs. Planning and development: Use:

• Helps the organisation to specialise and develop good customer relations.
• Reduces direct competition
• Appropriate in organisations that have limited resources or specialised products.

Marketing planning is very specific, and the messages and channels are customised.

4.  Differentiated Marketing Direction.

Differentiation marketing is aimed at marketing the various segments with different marketing mixes.

 Planning and development: Use:

• Assists in expanding markets and selling potential.
• Enables the organisation to provide other products or services to dissimilar segments.
• needs detailed planning and increased resources.

The strategy is conducive to growth, but it complicates marketing planning.

5. Focused Marketing Strategy.

Concentrated marketing puts all efforts into one segment.
Planning and development: Use:

• Strong positioning and brand positioning in a single segment.
• Effectiveness of the scarce marketing resources.
• Risk is escalated in case the segment reduces.

The focus of planning is to satisfy the target market with regard to a specific market.

6.  Micromarketing Approach

Micromarketing is focused on the customer and small local markets.

Planning and development: Use:

• Utilises data and technology to customise the marketing efforts.
• Enhances customer loyalty and response.
• Digital and online marketing is common.

Data management and technological ability are needed in this approach.