FACILITATOR MANUAL & ASSESSMENT … MANUAL & ASSESSMENT BSBMKG603B Precision Group (Australia) Pty Ltd 9 Koppen Tce, Cairns, QLD, 4870 Email: [email protected] Website:

MANAGE THE MARKETING PROCESS

FACILITATOR MANUAL & ASSESSMENT BSBMKG603B

Precision Group (Australia) Pty Ltd9 Koppen Tce, Cairns, QLD, 4870 Email: [email protected]: www.precisiongroup.com.au

© Precision Group (Australia) Pty Ltd

BSBMKG603B

Manage the Marketing Process

ISBN: 978-1-74238-

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1Facilitator Manual BSBMKG603B Manage the Marketing Process© Precision Group (Australia) Pty Ltd

Table of Contents

2 Legend3 Qualification Pathways4 Qualification Rules5 Introduction7 BSBMKG603B/01 Manage Marketing Performance Key Points

Manage marketing effort to ensure it is directed towards areas of greatest potential for the organisation

Manage integration of marketing, promotional and sales activities in accordance with strategic marketing objectives

Monitor product, distribution, pricing and marketing communication policies in relation to market changes, marketing plan objectives and organisational requirements

Use marketing metrics and monitor overall marketing progress against performance targets to ensure activity, quality, cost, and time requirements are met

19 ‘True’ or ‘False’ Quiz

21 BSBMKG603B/02 Manage Marketing Personnel Key Points

Communicate strategic marketing objectives across the organisation in ways suited to levels of knowledge, experience and specific needs of personnel

Identify and agree roles, responsibilities and accountabilities of staff and contractors involved in all elements of marketing effort

Develop communication strategy to ensure that personnel responsible for each element of the marketing mix work together to meet organisation’s marketing objectives

Provide mentoring, coaching and feedback to support individuals and teams to achieve agreed objectives and to use resources to the required standard

Identify individual and team performance, and instigate corrective action promptly to safeguard marketing outcomes


31 BSBMKG603B/03 Evaluate and Improve Strategic Marketing Performance Key Points

Analyse marketing outcomes, review strategic objectives and marketing metrics, and revise if required

2 Facilitator Manual BSBMKG603B Manage the Marketing Process © Precision Group (Australia) Pty Ltd

Legend

This symbol indicates the beginning of new content. The bold title matches the content of the competency and they will help you to find the section to reference for your assessment activities.

Activity: Whenever you see this symbol, there is an activity to carry out which has been designed to help reinforce the learning about the topic and take some action.

This symbol is used at the end of a section to indicate the summary key points of the previous section.

This symbol is used to indicate an answer to the Candidate’s questions or notes to assist the Facilitator.

Use considered risk taking in your ‘grey’ area

...and others will follow you!

Analyse successes and performance gaps in relation to cause and effect, and use this information to improve strategic performance

Analyse over-performance against targets for trends and set new targets

Analyse changes in market phenomena, and identify and document their impact on strategic marketing objectives

Document review of marketing performance against key performance indicators in accordance with organisational requirements


38 Summary39 Bibliography41 Assessment Pack


“There are always two choices. Two paths to take. One is easy. And its only reward is that it’s easy”. Source Unknown

This unit of competency is provided to meet the requirements of BSB07 Business Services Training Package although it can be used in a range of different qualifications. The BSB07 Business Services Training Package does not state how a qualification is to be achieved. Rather, Registered Training Organisations are required to use the qualification rules to ensure the needs of the learner and business customer are met. This is to be achieved through the development of effective learning programs delivered in an order that meets the stated needs of nominated Candidates and business customers.

Qualification Pathways


Qualification requirements include core and elective units. The unit mix is determined by specific unit of competency requirements which are stated in the qualification description. Registered Training Organisations then work with learners and business customers to select elective units relevant to the work outcome, local industry requirements and the qualification level.

All vocational education qualifications must lead to a work outcome. BSB07 Business Services Training Package qualifications allow for Registered Training Organisations (RTOs) to vary programs to meet:

Specific needs of a business or group of businesses.

Skill needs of a locality or a particular industry application of business skills.

Maximum employability of a group of students or an individual.

When packaging a qualification elective units are to be selected from an equivalent level qualification unless otherwise stated.

Qualification Rules

“You’re either part of the solution or part

of the problem.”Eldridge Cleaver


This unit of competency is about being able to manage the marketing process, including planning, personnel and performance. It will help you with the skills you need to demonstrate competency for the unit BSBMKG603B Manage the Marketing Process. This is one of the units that make up the Certificates in Business.

This manual is broken up into three sections. They are:

1. Manage Marketing Performance

2. Manage Marketing Personnel

3. Evaluate and Improve Strategic Marketing Performance

At the conclusion of this training you will be asked to complete an assessment pack for this unit of competency. The information contained in this resource will assist you to complete this task.

On competent completion of the assessment, you will have demonstrated your ability to manage, evaluate and improve marketing performance.

Introduction

“Whether as an individual, or as part of

a group, real progress depends on entering whole-heartedly into

the process and being motivated to make you a

more deeply satisfiedhuman being.”

Source Unknown



Key Points Section 1 Marketing efforts should be directed to those areas where there is the most

potential for the organisation to grow.

Sales, marketing and promotional efforts should be integrated.

Communication policies must be monitored to ensure that any market changes and objectives are noted and evaluated.

Marketing metrics allow you to monitor your progress is a quantitative manner.

PART 1:

Manage Marketing Performance


Part 1: Manage Marketing Performance

In this manual, we will be examining the process of implementing and monitoring marketing activities; these are specifically related to marketing planning and management activities. In this section we will examine the Implementation process, and specifically how it relates to the development of an implementation plan.

What is Marketing Management?

Marketing management is the process of carrying out tactics and strategies in order to achieve desired results - which may be in the form of marketing exchanges or sales. Modern marketing management tends to be related to the Marketing Concept. The marketing concept involves an organisation in attempting to ascertain what the customer wants, producing goods and services to meet that need and then selling that good or service to the customer at a price that they desire.

In order to achieve this aim, there are five steps to effective marketing management that must be completed. These five steps are:

1. Planning - Attempting to develop systems and plans that will enable an organisation to achieve its aims. This generally involves determining what an organisation wants to achieve and developing a marketing plan (which at this stage is generally strategic in nature).

2. Research - Attempting to determine exactly what it is the customer wants. The Marketing Concept states that the organisation should attempt to satisfy the needs of the customer. In order to do this, the organisation needs to understand exactly what it is the customer actually wants. Research in the form of focus groups and surveys are excellent in gaining this crucial information.

3. Implementation - Once you know what you want to do, you need to develop a plan that will allow you to actually get there. We will be focussing on implementation in detail later in this section.

4. Control - All good plans have a focus on control - examining how we will ensure that a plan stays focussed and on track. Controlling exactly what is occurring is a key to ensuring that the plan works effectively.

5. Evaluation - Planning should always include elements of evaluation. This is a quality control tool that ensures that the organisation learns from its experiences and that future plans have elements built into them that reflect the need to improve continually the processes that are put in place.

This five step process can be applied to any form of planning in an organisation, so let’s now take it one step further to examining how it can be applied specifically to marketing roles. The first step in the process is planning, and as mentioned above, this involves the development of a Strategic Marketing Plan.



Strategic Marketing Plan

The Strategic Marketing Plan is aimed at determining how an organisation will work within the marketplace to market and sell its products. It is a high level plan that includes very little in the way of tactics; rather it is aimed at providing an overview of the way that marketing will be handled in the organisation. The major focuses of the strategic marketing plan are the marketing objectives.

“Business has only two functions - marketing and innovation.” Milan Kundera



Marketing Objectives

In order for a plan to be effective, it needs to include objectives that can be measured. This will become crucial when we examine ways of controlling and evaluating marketing actions. There are a number of types of objectives that an organisation can develop. These are:

A strong market may call for an objective that invests heavily in marketing to attract the highest level of customers and sales.

A weaker organisation in a strong market may wish to strengthen the organisation, through the product offerings that they have, using this as a way to improve knowledge of the organisation.

A strong organisation in a weak market may look to increase profit by promoting their goods and services to increase the viability of their offering.

A weak organisation in a weak market may look to promote the most profitable sections of their market. If a market or product offering is seen as being ineffective, the organisation may look to divesting their investment in non-profitable product offerings.

This overall strategy works to provide a direction for the development of the organisation’s strategies and programs. This will be developed later in the implementation process.

Situation Analysis

When developing any form of strategy, it is important to understand the overall environment within which the organisation operates, as this may impact on the programs which are used to implement that strategy. The major factors that an organisation may consider include:

Government Actions

Any action undertaken by or being considered by the current government can either be a positive or negative force with regard to your marketing strategies. These factors may include: subsidies, Occupational Health and Safety, Taxation policy (particularly sales tax), industry regulations, product safety regulations, material safety and price controls. Each may play a role in either adding to or detracting from your strategies.

Demographic Changes

Over time all markets change. Put simply, the demographic factors that go to make up any market are in constant flux. This may grow your market or it may decrease your customer base. Your situational analysis should evaluate the age, education levels, income and location of your customers in order to determine where changes have occurred, or where they are anticipated as occurring.



Technology

We live in an age where technology is continually changing and improving. This may impact on the way you develop, manufacture or promote your products. Technology can also detract from your product. If new advances in technology are developed that overtake your product offering, you need to ensure that you are in a position to battle that change.

Culture

Just as demographics change, so too does culture. Fashion changes from season to season and some cultural shifts are more pervasive. Think of the change towards more ecologically friendly products. This shift has had a significant impact on the way that we think about marketing and product development.

SWOT Analysis

SWOT stands from Strengths, Weaknesses, Opportunities, and Threats. This form of market analysis examines where the company stands in the marketplace by examining what they do well, where problems lie, where they can lever their strengths to their advantage and where threats from others lie. When developing a SWOT analysis, it is important to remember that Strengths and Weaknesses are internal, while Opportunities and Threats come from outside the organisation in the external environment.

Planning in Marketing

A well planned market strategy is absolutely vital to the growth of any business. As a manager, you make business decisions every day. Often times these decisions are made mostly relying on your intuition. In the field of marketing, while you must make decisions, you may need to rely on more than just intuition and gut instinct.

In order to manage market performance you will need solid facts on which to base your decisions. Marketing requires you to have a solid knowledge of what other people want, and while intuition can be used to achieve this, often you will find that people are not that simple and so you need to use planning techniques to achieve your business goals. Helping you get these marketing and business goals is all part of setting your marketing strategy.

A marketing strategy can help you to examine and define business goals, but it can also help you develop the activities and strategies to achieve them. Essentially a marketing strategy establishes where you want to go. Once you know where you want to go, the next stage is to develop marketing tactics to allow you to determine how to get where you want to go.



As a manager, it is possible to just sit down and set up your own informal marketing strategy in just a few simple steps. Such a strategic plan is useful in helping you in making decisions later down the road. Try this exercise: find some quiet time to sit down with a notebook and put your thoughts on paper, where is it that you want to head with your business. Try to answer questions like: what aspects of your business are important, what is going well, what needs improvement, what objectives do you want to achieve? It could be helpful to make a file in which you will keep everything that deals with your marketing strategy. Keep all of your thoughts and notes in this file as well. You never know when you need to look back.

Differentiation

Differentiated goods and services attempt to satisfy the needs of customers through being different from the competition. This in turn gives the organisation a real competitive advantage over others in the marketplace. This allows the organisation to make price a smaller portion of the decision making process and focus on the value that the product brings to the customer. What does the product allow us to provide our customers, what is different and why would they buy it over the competitor’s offerings. The benefits of differentiation require producers to segment markets in order to target goods and services at specific segments, generating a higher than average price.

Any organisation that attempts to differentiate will incur additional costs in creating the improved performance that it allows you to bring to the marketplace. These costs are generally offset by the increase in revenue generated by sales - a higher price. The additional costs incurred must be recovered at some point and so the price or quantity produced must be increased in order to achieve the greater revenue requirements. There is also the chance that any differentiation could be copied by competitors - thus losing the competitive advantage gained. There is always an incentive to innovate and continuously improve your systems and products.

Cost Leadership

The low cost leader in any market gains an advantage over the competition by being able to produce a lot of product at the lowest cost. In this case, everything in the organisation is based around leading by cost advantage. The way the factories are built and maintained, the type of labour used, the training received, everything is based around delivering product at the lowest possible cost to the end user. You are looking at shaving every cent that you can off the price of a product to lead by cost advantage.

Here you are developing products at the ‘low-cost no-frills’ end of the market. An alternative strategy here may also revolve around low costs and price parity with the competition. This allows an organisation to have wider margins and achieve financial success that way. Think of an organisation like Toyota. The pricing strategy and brand are similar to other car manufacturers, but the organisation is renowned for managing to cut costs as low as possible through the use of technical expertise.



Focus

The focus strategy is also known as a ‘niche’ strategy. This strategy works for an organisation that is unable to work towards the broad cost leadership approach which can be initially difficult to implement or is unable to find a way to differentiate their product to the degree required. The adoption of a niche strategy requires the organisation to focus its effort and resources on a narrow, defined segment of a market. In the case of a niche strategy for dealing with increased performance, any advantage is generated specifically for the niche. A niche strategy is often used by smaller firms as they often work with more specific products and markets than larger organisations. A company could use either a cost focus or a differentiation focus when creating a focus strategy.

With a cost focus a firm aims at being the lowest cost producer in that niche or segment. With a differentiation focus a firm creates competitive advantage through differentiation within the niche or segment. There are potentially problems with this approach. Small, specialist niches could disappear in the long term. Cost focus is unachievable with an industry depending upon economies of scale.

Unique Selling Proposition

Another important step in developing a marketing strategy is to describe a company’s unique selling proposition, which is often abbreviated to USP. A USP is what sets one business apart from the rest of the market. What service or product do you have to offer that is unique? Why would a consumer choose your product or service over others? Why are you in business? If necessary, look through your business plan. You can even include your goals in this step.

Once you have defined your USP, it is time to establish who your target market is. Who do you want as a customer? Who do you currently have as customers? Do a little research into target markets - are you on track with others in your industry? Or are you bringing in a target market that isn’t usually a customer of your industry? You may find that you have different targets for different products and you may need a different marketing strategy for each.

Now describe how you will position your products or services. This step may take a little research and involves thinking creatively. Start with how you are currently positioning your product, and then move on to what you would like to see in the future. Are you happy with your marketing position, or do you want to see changes? Does the positioning reflect on your goals?

Finally, define your marketing methods. What are you currently using? Do these methods match your target audiences? For example, someone who spends a lot of time reading blogs will have differing interests than someone who listens to public radio or classical music radio. Think about how you advertise, market via the Internet, use direct marketing or public relations.

It is important that you have a marketing budget in place. The money that you spend on marketing is an investment that you hope will pay dividends for your organisation. If you follow a well planned strategy, you should see a solid result in terms of higher sales and profits.


You should revisit your marketing strategies at least once every few months. Many managers think of it much like a budget - keep it in front of you and on your mind. You just can’t develop a strategy and then file it away; if you do, it will not do you any good. You have to take steps to realise the goals in your plan. Check to see if you are on target or not. You may need to make revisions as time passes and your business changes.

Your Objectives and Reviews

The objectives are the starting point of the marketing plan. Once environmental analyses (such as SWOT, and GAP) and a market audit have been completed, their results will be useful in determining objectives. Objectives should seek to answer the question ‘Where do we want to go?’. The purposes of objectives include:

To enable a company to control its marketing performance.

To help to motivate individuals and teams to reach a common goal.

To provide an agreed, consistent focus for all functions of an organisation.

All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic, and Timed.

Specific - Be precise about what you are going to achieve.

Measurable - Quantify your objectives.

Achievable - Are you attempting too much?

Realistic - Do you have the resources to make the objective happen (men, money, machines, materials, minutes)?

Timed - State when you will achieve the objective (within a month? By February 2018?)

These objectives can then form the basis of any performance review. Once your performance is measured, you can compare the results against your objectives in order to determine where improvement is needed.

As a marketing organisation, you need to be careful not to believe the evaluation process takes place only at the end of the processes in question. If you only evaluate at the conclusion of the activities, it is essentially too late to see whether things actually went well. You also risk missing a lot of opportunities to modify and adapt the plan and so increase your chances of success. While we cover marketing plan monitoring later in this manual, it is important to always consider the fact that SMART objectives are how you will monitor your plan fully.

One way to ensure evaluation is taking place as the plan is being implemented, is to always ensure that you take the time to find out whether things are working well along the way. One way of doing this is to build in opportunities for feedback along the way. You may adopt formal and informal methods for doing this. You may, for example, use formal meetings and sessions or you may simply gather feedback anecdotally. However you decide to gain feedback, ensure it is continual and rigorous.



A good system for evaluating marketing material will capture a huge amount of information. This information will help you with future planning - in essence it will be used for future market audits. This is why marketing planning is often referred to as a planning cycle because the last parts of one process feed into the early parts of the next process. Now that we have selected overall performance strategies that are useful for your organisation, we will move on to the next stage, which is managing your marketing personnel who will enable your organisation to achieve their strategies.


"Excellence is not a skill. It is an attitude."

Ralph Marston


Activity One – Developing Performance Strategies Throughout this manual, there will be a range of questions asked that will assist you in preparing your assessment for this unit. Your answers to these questions, plus the final implementation plan that you produce will be used to determine your competency. For this reason, no answers to the questions being asked will be provided. You are encouraged to discuss your answers with others in your group, or with your facilitator.

The choice of business is up to you. It may be a retail outlet, a manufacturer or a service provider. You will not need any information from this business to undertake the assessment, as it is up to you to provide planning and performance management processes for the business based on any assumptions that you make. Once you have selected a business, write its name and a brief description of what they do below. Then answer all the questions that follow.

Name of business chosen and brief description

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1. Provide a list of business objectives for your chosen business.

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1. Continued

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2. Utilising the findings above, what strategies would you recommend the business use in terms of its marketing? For each strategy, write a brief justification for its existence.

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3. What (differentiation, cost leadership, focus and unique selling proposition) do you feel would be appropriate in this case?

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Section 1 - ‘True’ or ‘False’ Quiz

The focus strategy is also known as a ‘niche’ strategy.

Planning should always include elements of evaluation.

Marketing management is the process of carrying out tactics and strategies in order to achieve desired results.

In order for a plan to be effective, it needs to include objectives that can be measured.

Culture is always changing.

Evaluation should occur all through the process.

SMART objectives are very general in nature.

Differentiated goods and services attempt to satisfy the needs of customers through doing something different from the competition.

The Marketing Concept states that the organisation should attempt to satisfy the needs of the organisation.

True False

They are very specific in what they state.

It is about what the customer wants, not the organisation.


Documents

FACILITATOR MANUAL & ASSESSMENT … MANUAL & ASSESSMENT BSBMKG603B Precision Group (Australia) Pty Ltd 9 Koppen Tce, Cairns, QLD, 4870 Email: [email protected] Website: