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Unit 3- Marketing

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Introduction

UNIT 3- MARKETING Most of the major marketing strategies can be classified into one of the following four categories: * Product * Place * Price * Promotion These four categories are known as the marketing mix or the four P's of marketing. These are variables that the marketing managers have to control in order to satisfy their customers. Below is a diagram of how the marketing mix comprises. Product: looks at the physical product or service offered to the consumer, it also refers to the service or the conveniences that are part of the offering. Product decisions include aspects such as: function appearance, packaging, service, warranty and any other elements related with the product. Price: Pricing decisions should take into account profit margins and the probable pricing response of competitors. Pricing does not only take into account the list price but also looks at: discount, financing and other options such as leasing. Place: The place or placement serves as the channels of distribution for getting the product to the consumer. Distribution takes into account: Availability, types of outlets and market coverage and the location of the business. Promotion: These decisions are those related to communicating and selling the product to the consumer. Promotions need to take into account the value of the customer as promotions can become quite expensive and therefore you need to consider whether your customers are really worth the cost of acquiring them. Promotion decisions include: advertising, public relations, media types, publicity and image. The following table summarises the marketing mix decisions In regards to Hayes pool the marketing mix had been used to create their marketing strategy by looking at the four P's and linking them to the consumer. Hayes pool would be looking to use a market penetration scheme as their main target consumers would be those people interested in using the swimming facility. In this case Hayes pool knows that the demand is likely to be elastic because of the fact that so many leisure centres and gym facilities are constantly opening. ...read more.

Middle

* Secure dominance of growth markets. E.g. try to stay at the top by using persuasive advertising which should encourage as many people to use their facilities as opposed to other facilities available in the area. * Restructure a mature market by driving out competitors; this would require aggressive campaigning and heavy advertising and a pricing strategy that could make the market seen an unattractive prospect for competitors to participate in. * Once we have customers increase usage from them by introducing loyalty cards this will hopefully maintain goodwill amongst the customers. The external factors that are going to affect how the product is marketed are: * rivalry between existing competitors; * the threat of new entrants; * the threat of substitutes; * the bargaining power of buyers and; * the bargaining power of suppliers. These factors have worked examples below * Intensity of rivalry between existing competitors may be linked to determinants such as the number of competitors, marketing power, brand identity, product differences and cost structure. The rivalry will extend to the seeking of new markets and new products; * The threat of new entrants will be affected by determinants such as the barriers to entry and the expected reaction from existing firms. New entrants will incur high capital costs of entry plus experience costs of developing expertise and the costs of brand identity development; * the threat of substitutes may be determined by the level of innovation of existing producers, the ability of existing competitors to finance responses to the threat (switching costs) and the propensity of buyers to substitute, possibly because of price considerations; * The bargaining power of buyers may be linked to buyer concentration. Where there are many buyers (e.g. of chocolate bars) they have little direct ability to negotiate the price of the product. Where there are few buyers (e.g. of aircraft fleets) they are likely to have a much greater level of bargaining power in relation to price; * The bargaining power of suppliers may be viewed in a similar context to that of buyers. ...read more.

Conclusion

Weaknesses * Operates on a small scale * Regular cash flow problems * Deals in a limited market. Although my leisure centre is located near a residential area it may not be easy to access for people who are new to the area. The signage currently directing people to the area of Hayes town in which my leisure centre is located is very poor and only . The building lies just outside of the government fundable area which means that it is hard for them to generate sufficient revenue in order to expand and improve the facilities. The gym facilities are very basic and would probably only satisfy needs of those who just want a quick workout I need to look into adding more facilities and this can be achieved by researching what other competitors are offering in the area. Opportunities * New and rapidly growing markets * Changing tastes of consumers * Could diversify into a number of product lines. I have found that my leisure centre can be shifted across the road which would mean that it lies in the zone that is funded by the government; this means that they could give the pool a complete makeover and really build up the facilities. Also if the leisure centre was to move across the road a route from central avenue could be made allowing easier access to the leisure centre for residents of the road that falls on central avenue, east holme, orchard road and coldharbour lane. Threats * Growing competition from rivals * Recession leading to poor demand in the economy * Development of foreign competitors A new leisure centre has recently opened up in the area and is offering all the benefits of the leading gym centres but at lower prices. Within a year the local elections will take place again and if the current government is voted of the chair the next government may not allow funding for my leisure centre. ...read more.

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