Essay: Marketing analysis fundamentals

Marketing mix

The marketing mix of an establishment refers to the “four P’s” which are elements the organisation can control to ensure that their product or service is purchased by consumers by promoting its product in the market. The concept of the “four P’s” was developed by E. Jerome McCarthy. The four P’s of marketing are as follows:

• Product: Product refers to the good or service the organisation is offering to its relevant market and it can include products, ideas and services. The product in this scenario for DFEi are the courses it offers such as Business with Law.
• Place: This relates to the physical location of the establishment and how accessible it is to help promote the product. DFEi is a college that is located in Dun Laoighaire hence the service is accessible to those that attend the college.
• Price: This is the price that is charged for the goods or services that is offered. In relation to DFEi this is the price it charges for its courses for students who wish to attend the college.
• Promotion: This is a combination of elements such as sales promotion, advertising, public relations and direct marketing. This refers to the method in which DFEi decides to promote itself to the public using methods such as open days and promotion in secondary schools.

SWOT analysis

The SWOT analysis was developed by Albert Humphrey in the 1960s at Stanford Research Institute. SWOT refers to the Strengths, Weaknesses, Opportunities and Threats of an organisation. This is further classified in terms of being internal or external to the establishment.

Strengths and weaknesses are categorised as internal affairs of an establishment and this consists of elements such as:

• Financial Resources- Sources of income, funding and investment opportunities
• Human Resources- Employees, board of management and volunteers
• Physical Resources- Location, equipment and facilities
• Unique Processes- Patents and copyrights
• Past Experiences- Prior experience in that certain industry

Opportunities and Threats are viewed as external affairs of the organisation and it is made up of:

• Market and Economic Trends- Local, national and international trends
• Legislation- The impact of regulations on the establishment
• Demographics- The age, race, gender etc. of target audience to aid marketing
• Physical Environment- The location of the organisation

A strength of DFEi is the wide variety of courses it offers for potential students which ultimately attracts many students to the college. A weakness of DFEi is the lack of resources certain departments have such as only having one science lab for the science course. An opportunity for DFEi can be offering internships for students who graduate from the college. A threat to DFEi is the lowering of points for IT colleges which allows students to get in with low points which will be tough competition for PLC students.

Competitors

There are various different competitors for all establishment and they come in the form of direct competition and indirect competition. Direct competition is when two or more organisations provide a good or service that are extremely alike making them compete in the same market. In this scenario direct competition for DFEi would arise from other PLC colleges around Dublin but mainly from the Further Education Colleges which are a part of DDLETB such as Blackrock Further Education Institute (BFEI) and Dundrum College of Further Education (DCFE). These institutions offer direct competition to DFEi as students who wish to take a PLC course would also consider these colleges meaning that DFEi must be of great appeal to potential students to perform better than the other PLC colleges. Indirect competition refers to establishments that may not necessary offer the same service or product however offers something that may be satisfactory for consumers as it serves as a close replacement. For DFEi indirect competition comes from third level institutions such as UCD, Trinity College and DCU. These educational institutions also offer courses and some students may decide to enter a third level institute and complete a level 8 course as they believe that is more beneficial than doing a level 5 course first. Hence universities offer DFEi with indirect competition.

Primary and secondary data

Primary data refers to data that is collected from direct sources to receive accurate first-hand information. There are various different methods of collecting primary data such as surveys, focus groups and interviews. By conducting a survey, it allows for an individual to gather information from a group of people on a particular topic they wished to research on. A focus group can be formed where people are capable of discussing a topic directly which can be more effective as you get the opportunity to listen to the opinions of many different people and draw up a conclusion based on that.

Secondary data is data that has previously been gathered by other individuals and is made available for others to view. The main different forms of secondary data include books, internet and biographies. Books can be convenient when conducting research as the information required can be found in the publication and can be relevant to an individual’s research. The internet contains vast amounts of data from different people across the globe that is easily accessible by anyone. This allows for people to use websites, videos and books online to receive relevant information.

Market segmentation

Market segmentation is a process involving the grouping of consumers into smaller groups based on different elements unique to the customer. Customers are typically divided based on their interests, background, country and their needs and wants. This is considered an extremely effective marketing strategy as there is great diversity in the market especially at an international level. Market segmentation allows for companies to market their goods and services much more efficiently to their target audience.

The process of market segmentation can be extremely helpful in the promotion of DFEi. It can allow for DFEi to learn the wants and needs of its students in relation to the courses and how successful they are. It also allows for DFEi to efficiently market their college to potential students. It will also ensure that college is using its resources efficiently to promote the college.

Section 2

1. Packaging is a crucial part in the sale of goods as it is the container or wrapping in which the product is sold and also contains information on that particular product. There are various advantages to effective packaging which includes:

• Functional Benefits: The packaging for a good is important as ensures the safety of the good while it is on the shelves of a store along with when it is being shipped abroad and prevents any damage being caused to it. An example of this is with mobile phone producers such as Apple having a well-designed box for their phones to prevent any damage occurring to the device inside.
• Communication Benefits: It is crucial that information about the specific product is displayed clearly on the packaging to allow for the consumer to view the details of the product along with its use. An example of this is mobile phone boxes listing its specifications such storage size, camera quality, processor information and the RAM. This allows for consumers to be well educated about the product they may wish to purchase.
• Perceptual Benefits: This is an important aspect of packaging as it is what allows consumers to distinguish between different brands. Aspects include having a certain logo, colour, packaging shape etc. In the case of apple, it has maintained its same logo throughout the years however has altered the colour of the logo to bolder colours over the years making it distinct for consumers to easily recognise.
• There are multiple forms of psychological pricing which is utilised by businesses which is done in an attempt to make prices appear appealing to the consumers based on their emotional response to the prices which will ultimately influence them to spend more money. The different forms of psychological pricing include:
• Charm Pricing: This is regarded as one of the most commonly used form of psychological pricing where businesses reduce the price of their product by usually one digit under the whole number. This is an effective method as consumers ultimately view the two prices as two completely different values and perceives it to be cheaper although there is no dramatic difference. An example of this is a bottle of water being sold at €1.99 which is technically the same as €2 however the brain perceives €1.99 as a whole euro cheaper.
• Buy One Get One Free/Discount Pricing- By placing an offer on a certain product it will tempt the consumer further to purchase that product. This triggers an emotional response with the consumer forcing them to believe it is essential to buy the good especially as there is a discount. For example, by creating a deal such as buy two get one free on a chocolate bar it will force the consumer to buy two bars even though they do not require of it.

Methods similar to these used by businesses influence consumers to buy goods with ease generating high rates of sales for the company.

3. Distribution refers to the supplying of goods by a company to the market. Distribution is also an element of the marketing mix. The channels of distribution are divided into direct and intermediary distribution. The process of direct distribution involves the products manufactured by a company being distributed to its customers directly with no intervention from any other exterior sources. This means that the company must own a warehouse and a team for sorting out deliveries and other essential equipment. This is an extremely logical method as it allows for the manufacturer to have direct contact with its customers. An example of this are clothing companies who have their own stores both in store and online.

Intermediary distribution refers to companies who use intermediaries to sell their finished goods rather than selling it directly to the consumers. Examples of intermediaries include retailers, wholesalers and agents. Businesses form contracts with intermediaries to allow for them to successfully sell their goods through the “middlemen”. This may be much more convenient to smaller companies as they may not have the capital and resources to launch direct distribution. An example of this is Apple selling their products via retailers such as Harvey Norman and Carphone Warehouse.

4. Sales promotion is a short-term incentive which is set in place to increase the purchasing of goods and services by consumers. Sales promotion techniques are only effective when introduces as a temporary measure. Sales promotion can be applicable to both consumers and for traders. The advantages of sales promotion include:

• Increasing the sales of a business in the short term by attracting more customers with discounts in the form of coupons, buy one get one free and free samples on certain goods.
• Attracting new customers to businesses with efficient promotional offers which can be beneficial to a company as they may gradually become regular customers.
• It can also further increase the purchases of regular customers with the use of promotions such as stamp-collecting schemes making customers continuing purchasing goods due to loyalty schemes like this.

An example of sales promotion is loyalty schemes which are usually associated with supermarkets, cinemas and certain restaurants. This creates loyal customers who will return as they will be rewarded for their purchases with discounts on future purchases.

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