3.2 Internal Audit
3.2.1 Marketing organisational structure and systems
Spotify appears to have a clear and precise organisational structure, and all existing employees and new employees are enthusiastic and have great belief in Spotify’s values (see appendix 7.1.4.2).
3.2.2 Marketing related resources, competencies and capabilities
It is clear that Spotify is planning to be available in geographical areas that it is not at the moment such as the USA and Japan (see appendix 7.1.5.2). This is an outstanding opportunity for brand development and to achieve the corporate objective of becoming the biggest music subscription service in the world within the next three years.
However there is a significant lack of market research and planning carried out by the company, which is reinforced by Spotify believing that it is such a good product that it does not need to carry out marketing (see appendix 7.1.4.1 and 7.1.4.3). However, this is not the case, as all companies require some form of marketing or a sales drop in this particular case is likely to be expected.
3.2.3 Brands, product ranges, lines and items
The product in this marketing plan that is been focused on is the Spotify Premium account that has had a significant decrease in sales (see appendix 7.1.7.1). A premium account is the most expensive product offered by Spotify (see appendix 7.1.7.2) but also offers the consumer more benefits (see appendix 7.6). Furthermore the benefit that is specifically unique to the Premium membership is that the user is able to access the Spotify platform on a variety of mobile phones which enables music to be listened to with extreme portability
(see appendix 7.3 7.4, 7.5), whilst the user is still able to access Spotify from a ‘home’ computer or netbook (see appendix 7.6).
- SWOT
- Strengths analysis
- There is a focus on research, development and design which provides the continuous development and improvement of Spotify’s existing products.
- The products and services that Spotify offer are very unique and are differentiated from its competitors.
- Spotify has excellent relationships and loyalty with all types of customers.
- Weaknesses analysis
- Spotify has low brand awareness due to its lack of marketing.
- There are financial problems within the company.
- Spotify has a very limited number of products.
- Opportunities analysis
- Spotify could enter into new open markets in technology such as MP3 players, record label, netbooks, phones, or even a ticket selling website.
- There is an opportunity for Spotify to increase its geographical distribution.
- Downloadable music is highly marketable.
- Threats analysis
- Spotify faces intense competition from its competitors.
- There is uncertainty in the current economic climate.
- People are still illegally downloading a high volume of music.
- A change in government regulations in particular on music copyright would threaten the way Spotify operates.
- The company is facing falling sales and decreasing profits.
- Swot profile and imperatives
The SWOT profile and imperative gives a realistic view of not only how Spotify is a successful business model but also how there is great opportunity for the company to grow by viewing weaknesses and threats as a positive means for company development and the marketing plan to address and overcome.
4.0 MARKETING OBJECTIVES
4.1 Strategic marketing objectives
- Over the next four years achieve 75% brand awareness of Spotify by its consumer target market in the UK.
- To establish a clear, differentiated brand positioning based on value for money, ease of access and reliability by the autumn period in the UK.
4.2 Financial based objectives
- To increase Spotify’s sales of their Premium User accounts by 40% over the next year in the UK.
- To gain a 10% market share in the UK digital music segment over the next year.
- To increase retention by 25% in UK by November.
5.0 Marketing strategy
5.1 Market segmentation analysis
Diagram 2: Segmenting consumer Markets adapted from Jobber and Fahy (2009)
The Diagram 2 above helps aid to the explanation of Spotify huge mass audience.
Table 1: Consumer Segmentation of Spotify’s Mass Audience
Table 1 shows the segmentation of Spotify’s mass audience is divided into three main groups: behavioural, psychographic and profile variables which have a wide range of criteria that can enable the selection of target market.
5.2 Basis of competitive advantage
Diagram 3: Porter (1985) Competitive Advantage Strategy
The diagram above represents Porter’s generic strategy for achieving competitive advantage. The model can be used to categorize Spotify’s competitors and show how Spotify has a competitive advantage. In this case Spotify main threatening competitor is ITunes and Spotify has a competitive advantage by having a narrower business scope, as it is only accessible in some European counties and it is low cost. Spotify appears to be taking the right attitude to the cost elements in the current economic environment. However if Spotify manages to be distributed in further countries such as Japan and America then its business scope could grow broader.
5.3 Target market(s) profile(s)
From Table 1 showing the segmentation of Spotify’s mass audience the chosen target market is made up of:
Behaviour variables: the benefits sought is the ease of access, the purchase occasion is self- buy, the usage is medium and the purchase behaviour is convenience.
Psychographic variables: extroverts, feelings and are submissive.
Demographic variables: males and females aged 19-25.
5.4 Alternative target market(s) strategy specification(s)
Referring back to Table 1, there are three alternative target markets:
The first alternative target market is made up of:
Behaviour variables: the benefits sought is the ease of access , the purchase occasion is self- buy, the usage is light and the purchase behaviour is convenience.
Psychographic variables: extroverts, feelings and are submissive.
Demographic variables: males and females under the age of 18.
The second alternative target market is made up of:
Behaviour variables: the benefits sought is the ease of access , the purchase occasion is self- buy, the usage is non-user and the purchase behaviour is convenience.
Psychographic variables: extroverts, feelings and are submissive.
Demographic variables: males and females under the age of 19 -25.
The third alternative target market is made up of:
Behaviour variables: the benefits sought is pleasure, the purchase occasion is self- buy, the usage is non-user and the purchase behaviour is convenience.
Psychographic variables: extroverts, feelings and are submissive.
Demographic variables: males and females under the age of 26-40.
5.5 Target market(s) strategy selection
Diagram 4: Treacy and Wiersema (1993) value disciplines
Finally diagram 4 represents value discipline strategies and how to increase customer value. At the moment value discipline is made up of operational excellence and a slight mix product leadership. Spotify provides excellent value for money to its customers with a variety of services within its product has ease of access by being on multi-platforms. However to meet the marketing objectives Spotify should employ an even mixture of both as show by the green writing on Spotify. Spotify can achieve this by creating better brand awareness, creating staff innovation systems, and to continuing working with other technologic companies to increase the amount of multi-platforms available to access Spotify.
5.6 Marketing programme positioning and tactical /operational objectives
5.6.1 Product
- To create awareness of the Premium version of Spotify by having promotional demonstrations on the high street and in shopping centres in February and march.
5.6.2 Price
- To allow Spotify open members to trial Spotify Premium there will be free weekly subscription trials in the months of April, July, August and November.
- To allow the first thousand new members of Spotify Open after trailing in in the high street and Shopping Centres to receive Spotify Premium free for two months during the months of March and April
5.6.3 Promotion
- To promote and create brand awareness for Spotify there will advertisements place in Cinema, Billboards, and Magazines during a two month timeframe during the months of Febrauary/March, June/July and October/November.
- To further create brand awareness Spotify free gigs will be hosted during the months of May, July and September where Spotify Premium members will win free tickets.
- In February, download Thursday will commence for a year to allow all Spotify Premium users to download one free track.
- A one month campaign will occur in February called ‘Stop killing the music industry’ to allow the target market to release the potential and positive nature of Spotify.
- In the months of April, June and August artist endorsement will be used to not only promote their material and the Spotify brand but also the Spotify live gigs.
- Place/channel distribution
- To continue research with other technological companies to develop Spotify on further platforms throughout the whole year.
- To have Spotify on at least another two platforms by June and July.
5.6.5 Physical evidence
- A survey will be conducted in January and November to identify the positive changes in brand development.
- The flyers will bear a unique code that people are given in the months of March and April at the product demonstration, which will remind them to sign up to Spotify.
- People
- Training of personnel to carry out demonstrations will occur Jan and February.
- Training, developing, and monitoring of call centres will occur in March and April to give more efficient customer service
- Process
- Demonstrations held in February and March will emphasise the benefits of Premium accounts.
6.0 Implementation and control
6.1 Timing, responsibilities and budgets
Year 1:Timing/Activity Chart –Critical Implementation Phases
Year 1: Implementation Phase Data
The colour charting of the responsibilities of the tasks to be carried out in Year 1: Implementation Phase Data is represented under the Year 1:Timing/Activity Chart –Critical Implementation Phases of what months to be carried out in. See Appendix 2 for the calculation and break down of budget figures.
6.2 Monitoring and control
To monitor the success of the Marketing Campaign a survey has been put in place to measure how the brand awareness of Spotify has been increased by the operational tactics. Although this marketing plan accounts for a lot of promotional elements which could raise the brand awareness within only one year, the need to implement another plan should not be forgotten. Furthermore continuous media promotion is always necessary to remind people of your brand and to enhance a strong brand position.
7.0 APPENDICES
7.1 Detailed Marketing Audit: External and Internal
7.1.1 Macro – Environment
7. 1.1.1 Economic – Demographic
The current economic environment is currently shaped by weak action, low profits and high unemployment and it is likely that the environment will stay uncertain and unstable for years to come (Kaletsky 2010 and Erian 2008). The rate of unemployment from October 2010 to January 2011 was 8.0% of the population (Statistics 2011).
It can be seen that due to environmental condition people are becoming more selective of how they spend their money. Often consumers are buying cheaper products and are seeking value for money (New Edge 2011).
The amount of people in the older pensionable generation is significantly increasing due to people living longer as better health care is being provided and a decrease in birth rates (Bowdin et al 2006).
- Technological
People are seeking music on the spot with quick, easy instant access which is a dramatic shift from buying music in-store. Technology can be seen to change at rapid speeds which can have a dramatically positive impact on peoples lives. The technology at the moment is taken for granted, but only a decade ago it didn’t exist. Some of the most recent developments are touch screens, notebooks, and mobile broadband (Laptop Logic 2011, Idecorp 2011).
The technological trend of digital piracy exists where the vast majority of people don’t pay for the music they consume (BPI 2011).
- Political-Legal
There are tight laws about sharing music, this is reducing illegally shared music that reduces the profits made by the music industry. In the UK, copyright law means any person willing to play music to the public will require consent for doing so. Therefore if a person/business who wants to music in public will need to buy a music license from the Performing Rights Society (PRS 2011).
- Cultural
Since 1945 the population’s attitudes and lifestyles have become more relaxed. This can be seen in the increased spending patterns in leisure activities, 24hr shopping and reduction of Sunday restrictions (BBC 2011).
There is a barrier to some of the target audience to join Spotify as some are wary about security and do not like to idea of online payments (IFPI 2011)
7.1.1.5 Ecological
Due to the increasing concerns of climate change, the UK government has enforced a climate change act setting targets for 2050 to reduce the damaging effects occurring on the environment (Legislation 2008). This means that all business need to abide to this act.
7.1.2 Task Environment
7.1.2.1 Markets
It is estimated that global digital music marketing will develop from $4.81Bn in 2009 to $13.74Bn in 2011 (All Business 2011).
IFPI (2010) highlight in their report the that the digital music market is with US$25 billion. Furthermore Spotify has a 35% market share in Sweden, its home country (Effortless Computing 2009).
At the end of 2010 more than 400 legal music services now exist worldwide (IFPI 2011).
It is estimated that 16.5 % of internet users purchase digital music in the US.
The increase value of the digital music market between 2004 and 2010 was +1000%(IFPI 2011).
There was seen to be a 6% growth in global music revenue in 2010 (IFPI 2011).
Spotify attracts over 750,000 paying subscribers across its market, it is the biggest retailer in Norway and Sweden and it the number two digital service in european after ITunes (IFPI 2011).
The Geographical distribution of Spotify is limited due to different music laws in different countries so far Spotify is available in Sweden, Spain, Netherlands, Finland, UK, and France. Their is opportunities for Spotify to expand to countries as American and Japan, however Spotify will need to develop and adapt to the legal challenges.
7.1.2.2 Customers
There seems to be a positive attitude towards Spotify from its customer there is an online free help forum that often users get quick useful help from (Get Satisfaction 2011).
Spotify serves is a wide variety of ages and different genders but in particular those who are younger (16 – 25years old), technology minded and who have a love for music (IFPI 2010).
The needs of the customer are that they want quick music with easy access on the spot for a cheap as possible ( Pull 2009).
7.1.2.3 Competitors
Spotify has a huge range of competitors they are:
ITunes, Google Music, Napster, Amazon, Hmv Digital, Sky, TDC Playm, Terra Sonara, Vero, Emusic, 7digital, Rhapsody, Myspace music, Jamster, LastFm, Bleep.com, Nokia music, TDC, Deezer, Simfy, and Music Monster.fm ( Crunchbase 2011, IFPI 2010).
ITunes gains the largest revenue source of the digital music market by having a 25% market share (IFPI 2011) ,with 100 million accounts being available in 23 countries. There tactics include variable pricing, launch of the Itunes LP and roll out of the DRM – free downloads, they also use artist endorsement to promote their brand. The launch of the Itunes LP boosted the demand for premium accounts (IFPI 2010)
Deezer requires no downloaded software but is accessible online and comprises of personalise web radios and has 16million users to date with 10 million in France (IFPI 2010).
TDC Play offers broadband, mobile and cable with unlimited music streaming of 6.1 million tracks at no additional cost to it’s customers in Denmark (IFPI 2010).
Sky created Sky Songs in 2009 which comprises of unlimited streaming of 4 million tracks with 10 to 15 free downloads a month (IFPI 2010).
Vodafone operates in twenty different countries who provides unlimited subscriptions with a bundles that comes with the mobile phone service that have 100,000 users currently subscribed (IFPI 2010).
In Brazil Terra Network in 2006 joined forces with Sonora to offer twenty hours of music streams on an ad-hol basis and gain three million users with less than a year.
7.1.2.4 Distribution and Dealers
Spotify is access online via computer, mobile, laptop, or netbook. It can be downloaded on Mac Os x or windows platform (Spotify 2011).
7.1.2.5 Suppliers
Spotify’s suppliers are the records labels that provide them with their artists music. Spotify has agreements with the record labels of Universal, EMI, Sony Music, Warner Music, Merlin and the Orchard (Spotify 2011)
7.1.2.6 Publics
Spotify’s main opportunity to operate in the country’s that it does not do so.
7.1.3 Marketing Strategy Audit
7.1.3.1 Business Mission
‘We want to connect millions of people with their favourite songs and create a service that people love to use. We believe music should be easily accessible and that listening to music will make people live richer lives. We want to create a win w in situation for people who love listening to music and people who love creating music’(Start Uply 2011).
Marketing Objectives and Goals
The aim to be be one of the biggest music subscription services in the world (IFPI 2011).
To make Spotify a "total music management platform". (Econsultancy 2010)
To help people listen to whatever music they want, wherever they want (Spotify 2011).
‘To migrate illegal file – shares to its service by shifting the 16-25 year music fans to a legal model’.
Daniel Ek, CEO of Spotify states that there goal ‘In the UK is to increase the number of subscribers by a factor of 5’ in IPFI 2011, he recognises that this is a huge task and may take a couple of years.
- Strategy
Spotify aims to fulfil its objectives and goals by using high levels of penetration to move its users to a premium service. (IFPI 2011)
7.1.4 Marketing Organisations Audit
- Formal Structure
Spotify was founded in 2006 by Daniel Ek and Martin Lorentzon. Currently the company holds Headquarters in UK, Stockholm, Paris, Oslo, Madrid, and Amsterdam and recruits 250 employees (Spotify 2011).
7.1.4.2 Function Efficiency
Spotify believes that it is important to consider seeking employee talent when hiring, this enables Spotify’s vision to be fulfilled (AOP 2011). It is noticable that the majority of employees in Spotify’s company have a proven record of success. It is said that Spotify are hiring Domino Records digital boss Steve Savoca to become US content chief for the launch of Spotify in the USA (Music Alley 2011, Music Week 2011a and Music Week 2011b).
7.1.4.3 Interface Efficiency
Jon Mitchell, UK Country Manager highlighted in an interview with AOP(2011) that employee structure is very important Spotify as aids the process of development, engaging and product manufacturing
7.1.5 Marketing Systems Audit
7.1.5.1 Marketing Information System
No available information
- Marketing Planning System
Spotify was aiming to be operating in Japan and America last year but unfortunately is having conflicting issues with legal polices (Music Week 2010a and Music Week 2010b).
7.1.5.3 Marketing Control System
No available information
7.1.5.4 New product development System
The development of Spotify’s products are at the heart of making the product as simple as possible for its consumers to use. This means their team are constantly making improvements to add to ease of access. Jon Mitchell UK Country Manager, believes this makes people fall in love with their product and adds to its sustainability. Furthermore Spotify working with other technology companies means that they are at the forefront of technology with multi-platforms to host their product on. (AOP 2011)
An example of such product development is Sonos partnership with Spotify which has allowed premium users to stream music in any room in the house by Sonos Multi – Room music system which is available in seven European countries (IFPI 2011).
Furthermore Spotify is set to start streaming live shows and concerts on the 5th of April 2011. This first gig will be in Koko nightclub in London featuring Delphic, Pony pony run run, and the Naked and Famous (Complex 2011 and CMU 2011). Complex (2011) further adds to this by stating that Jonathon Foster the general manager of Spotify states that: Giving people access to live music at home is the next part in the Spotify Experience and there is more expected in the future.
7.1.6 Marketing Productivity Audit
7.1.6.1 Profitability Analysis
On the 8th of March 2011 it was reported that Spotify has reached the point of one million subscribers and that the value of the company is estimated at £616m (BBC 2011).
- Cost- Effectiveness Analysis
No available information
7.1.7 Marketing functions audits
7.1.7.1 Products.
Business to consumer: Spotify is comprised of three different types of membership that vary in price. They are called: Premium, Unlimited and Open.Premium is £9.99 a month, it enables access to Spotify on mobiles, an offline mode for playlists, no advertisements and unlimited streaming of music. Unlimited is £4.99 a month which allows unlimited streaming of music to be played with no advertisements. Open is completely free with advertisement in between streaming of tracks.
Business to Business:
For businesses who wish to advertise with Spotify via the Open member, Spotify can target specific audiences for the adverts according to demographic, location and mood. Advertising can incorporate banners, audio or even advanced video (Ikroh 2011).
- Price
Business to consumer: The price ranges from £9.99 with Premium to free with Spotify Open. This is viewed upon by most customers as value for money (Get Satisfaction 2010).
Business to Business:
The cost of advertising is calculated by Pricing is by CPM (Cost Per Thousand Impressions) – £10CPM for audio ads and £6CPM for display ads (Ikroh 2011).
7.1.7.3 Distribution
Spotify can be accessed from multi-platform all of which need internet: Phone, PCs, Netbooks and Tablets. To access Spotify from any of these source the program/APP needs to be installed and from there joining is very easy!(Spotify 2011)
7.1.7.4 Advertising,Sales Promotion, PR
There is an obvious lack of advertising, sales, promotion and PR carried out by Spotify. This is due to the company believing that there product is so good that they didn’t need to do any marketing they feel word of mouth was adequate. However that changed in 2009 with their first Spotify Swedish Advert (Butcher 2009, Marketing Week 2009)
Its was reported that in Oct 2009 Spotify had spent less than £5,000 on marketing in the UK (Marketing Week 2009).
Spotify is currently giving new members the option of trailing premium accounts free for a week (Spotify 2011).
Social Network site such as Facebook, Twitter,Flickr, Youtube and Spotify runs a blog that is constantly helping its users keep up to date (Spotify 2011).
- Sales force
No available information
blythe and Megicks (2010)
Source: Adapted from KOTLER, PHILIP, MARKETING MANAGEMENT 11th ed., (C) 2003. Reproduced by permission of Person Education Inc., Upper Saddle River New Jersey.
7. 2 Calculation of budget figures for year 1: Implementation Phase Data
Marketing Research:
Months’ Salary of £800 working 5 hours a day at 5 days a week at £6.00 an hour - Total for Marketing Research = £800
Survey Research Method:
3 Researchers in each location around the UK (2 locations in Scotland and 4 in England) carrying out surveys around shopping mall areas as these have huge amount of people through the days and will cater for a large demographics.
6 locations * 3 researchers = 21 researchers
Each researcher will work 5 hours a day at 5 days a week at £6.00 = £150 per person per week. Research will be carried out for a two week period = £300 per research
21* 300 * 2(carried out on two occasions) = £12600 for initial research.
It will take a week for the survey to be created and 1 week to implement *2 occasions = £800 a month’s wage.
Total for survey =£20,600
Media Promotion: Cinema
Advertising with Pearl and Dean (Pearl and dean 2011) who offer a GAP youth package which guarantees admissions, films specification to 18-24 demographic (the target segmentation), regional flexible = £34,490 per week
The advertisement in cinema will run a week in march, july and nov = 34,490 * 3=
Total for cinema advertising = £103,407
Billboards
Advertising with primesight (Primesight 2011) who offer a national broadcast of 48sheets at £500 for two week = £1000 a week. For 6 months = £7000
Total for billboard advertising = £7,000
Magazine Advertisement
Advertising with Kerrang Magazine it caters for a demographics of 16 -24 years old of all genders abc1, C2 and students. Has a circulation off 44,013 and a readership of 412,000 (Get Me Media 2011). To advertise half a display is £1,512 a week which is £6048 a month.
To advertise for 3 months = £18,144
Toadvertise in Q mag costs = £10,000(Bauermedia 2011) *3months = £30,000
Total for magazine advertisement - £48,144
Radio Advertisement
Could not find any accessible figure therefore presuming it will cost roughly the same as magazine and cinema advertising therefore there will be advertisement on Kiss 105 – 108 (Kiss Radio 2011) which is played in England costing £1,000 a week so £4,000 a month for 3 months £12,000
Total for radio advertisement =£12,000
Total for media advertisement = £60,144
Awareness Promotion
This promotion will only last a month a small budget of £3,000 is aside for advertising with partners, member that are already a part of Spotify and mail outs.
Training of Personnel
The personnel will be already working and therefore training in normal work time hours.
The demonstrators to be training will paid for their training amongst their work payments
Demonstrations
2 Researchers in each location around the UK (2 locations in Scotland and 3 in England) carrying out surveys around shopping mall areas as these have huge of people through the days and will cater for a large demographics.
5 locations * 2 researchers = 10 researchers
Each demonstrator will work 6 hours a day at 4 days a week at £6.00 = £144 per person per week. Research will be carried out for a month period = £576 per demonstrator.
10* 576 * 3times = £1728 for initial demonstrations
£15,000 for three months to hire a small stall in shopping mall.
Total of £16,728
Gigs
The gigs will be hosted in medium venues, such O2 venues Spotify aim to form a partnership will 02 to gain special discounts. A budget of £15,000 is set aside.
Artist Endorsement
Spotify has a small budget of £100 as Artists are likely to do this for free to help promote awareness of accessing there music legally. It also give the artist promotion themselves therefore it is a win-win situation.
Free Spotify memberships, trials, and tracks
This is another area that has a relativity small budget of £1,000 Spotify will not have to pay for this as it is their product. However the £1,000 is set aside of expenses.
7.3 Spotify Symbian phone range
(Spotify Symbian Range 2011)
7.4 Spotify on nokia express and android
(Spotify Nokia Music Express 2011)
(Spotify Android Playlist 2011)
7.5 Spotify on Iphone
(Spotify Iphone 1 2011)
(Spotify Iphone 2 2011)
7.6 Spotify product price range differences
Spotify price overview 2011)
7.7 Spotify player
(Spotify Whats new homepage 2011)
(Spotify Social main page 2011)
REFERENCE LIST
All Business. 2009. Research and Markets [online] [Accessed March 21 2011]
Ansoff, H, I. 1965. Corporate Strategy. McGraw-Hill: New York.
AOP. 2011. Jonathan Mitchell, UK Country Manager [online] http://www.ukaop.org.uk/events/jonathanmitchellbiog.html [Accessed March 25 2011]
Bauermedia. 2011. Magazine Advertising Rate Card [online] .bauermedia.co.uk/ratecard [Accessed March 28 2011]
BBC. 2011. Spotify hits milestone with 1million subscribers [online]http://www.bbc.co.uk/news/business-12676327 [Accessed March 23 2011]
Blythe, J and Megicks, P. 2010. Marketing Planning: Strategy, environment and context,FT Prentice Hall: Harlow, England, UK.
Bowdin, G. A. J. Allen, J. O’Toole, W. Harris, R. and McDonnell, I. 2006. Events Management. Oxford: Elsevier Butterworth-Heinemann. Chapter 15.
BPI. 2011. Commercial Music Piracy [online] [Accessed March 28 2011
Butcher. 2009. How Spotify U-Turn on it’s no marketing policy with its first ever TV AD [online] [Accessed March 23 2011]
CMU. 2011. Spotify to stream London gig [online] [Accessed March 23 2011]
Complex 2011. Spotify to start streaming live shows and concerts [online] [Accessed March 23 2011]
Crunchbase. 2011. Spotify Profile [online] [Accessed March 15 2011]
El Erian, M.2008. When Markets Collide, McGraw-Hill: Columbus, Ohio
Econsultancy. 2010. Spotify looks to made digital music more social [online]
[Accessed March 23 2011]
Effortless Computing. 2009. Spotify has a 35% market share in Sweden [online] [Accessed March 23 2011]
Get Me Media. 2011. Advertising opportunities in Kerrang! Magazine[online] [Accessed March 23 2011]
Get Satisfaction. 2011. Community-powered support for Spotify [online] [Accessed March 23 2011]
Idecorp.2011. Rapid Advances in Technology [online] [Accessed March 21 2011]
IFPI. 2010. IFPI Digital Music Report 2010: Music how, where, when you want it[online] [Accessed March 18 2011
IFPI. 2011. IFPI Digital Music Report 2011: Music at the touch of a button [online] [Accessed March 18 2011]
Ikroh. 2010. Spotify Advertising 101 [online] [Accessed March 18 2011]
Jobber, D and Fahy, J. Foundations of Marketing. 2009.3rd Edition, McGraw-Hill:London.
Kaletsky, A. 2010. Capitalism 4.0: The birth of a new economy, Bloomsbury: London
Kiss Radio. 2011. Kiss Radio website homepage [online] [Accessed March 28 2011]
Laptoplogic.2011. 5 Recent Technological Advances that are Shaping the Future [online]
[Accessed March 23 2011]
Legisation .2008. Climate change Act 2008. [online] Available from: [Accessed 11 March 2011]
Marketing Week. 2009. Spotify to advertise on TV [online] [Accessed 11 March 2011]
Music Alley.2011. Spotify set to livestream concert and to hire domino man for us [online] [Accessed March 23 2011]
Music Week. 2011a. Spotify makes US appointment [online] [Accessed March 23 2011]
Music Week. 2011b. Spotify gets R.E.M album exclusive [online] [Accessed March 23 2011]
New Edge. 2011. Selective Consumerism [online] Available at [Accessed March 21 2011]
Pearl and Dean. 2011. Business homepage [online] [Accessed March 28 2011]
Porter, M.E (1985). Competitive Advantage. The free Press: New york
Primesight.2011. Primesight homepage [online] http:/www.primesight.com [Accessed March 28 2011]
PRS. 2010. PRS for Music [online] [Accessed March 23 2011]
Pull, H. 2009. Why Spotify will beat itunes and what we can learn from them [online] [Accessed March 22 2011]
Spotify. 2011. Spotify homepage [online] [Accessed March 18 2011]
Spotify Androd playlist. 2011. [Online image] [Accessed March 28 2011]
Startuply.2011. Spotify Profile [online]
Spotify Iphone 1. 2011. [Online image] [Accessed March 28 2011]
Spotify Iphone 2. 2011. [Online image] [Accessed March 28 2011]
Spotify Nokia Music Express. 2011. [Online image] [Accessed March 28 2011]
Spotify Price Overview.2011. [online image] [Accessed March 28 2011]
Spotify Social main page. 2011. [Online image] Available from: [Accessed March 28 2011]
Spotify Symbian Range. 2011. [Online image] Available from: [Accessed March 28 2011].
Spotify Whats new homepage. 2011. [Online image] Available from: [Accessed March 28 2011]
Startuply. 2011. Spotify company information [online] [Accessed 18 March 2011]
Statistics .2011.UK National Statistics [online] www.statistics.gov.uk[Accessed March 21 2011]
Treacy, M. and Wiersema , F. 1993. Customer intimacy and other value disciplines. Harvard Business Review. January – February. Pp 84 -93
PART 2 DISCUSSION PAPER – 838 WORDS
Terms of Reference:
‘Insight into the latest thinking on marketing planning’s strategic and operational contribution to contemporary marketing in an age of continuous change and uncertainty’.
This discussion paper aims to address the current developments in market planning’s strategic and operational involvement in marketing where the marketing environment is shaped by an uncertain economy. Firstly the discussion paper will address the definition of marketing and how it has developed over time. Then the development of the internet will discussed to develop an understanding of how it is affecting marketing activities and how it has influenced communication tools in the marketing industry. Finally the discussion paper will draw a conclusion emphasizing the importance of Marketing Directors understanding the effectiveness of marketing planning that utilize and are aware of the latest techniques and trends.
Kotler (1984) defines the marketing management process as comprising of market opportunities, researching, selecting target markets, developing marketing strategies, planning marketing tactics and implementing and controlling the marketing effort. On the other hand, Browlie 1985 describes Strategic Marketing planning as the form of marketing strategy within the framework of the strategic planning process. This has enabled market researchers more recently to focus on identifying and overcoming the problems of implementing market- led change (Banoma 1985, and Piercy 1987 p.1 cited in Peattie and Notely 1989)
Marketing provides a means of predicting the sales of products, analysing market segments with optional promotional lifts, and research to understand the market (Wicken and Asquith 2008). Strong brands have very distinct marketing competencies through allocation of marketing resources, revenues for costing and control of marketing activities (Bharadwaj, Bharadwaj, Konsynski 1999). It is important that businesses are equally aware of intangible marketing assets as well tangible ones. Branding is a well known intangible marketing asset that is a corporate level strategic component that plays a crucial role in business performance (Ailawadi, Lehamann and Neslin (2000). The main way for companies to drive and influence product sales is through marketing initiatives which are comprised of: sales promotions, advertising spending, and media (Brumbough 2010). However Wicken and Asquith (2008) indicate that the hardest part of Marketing planning is predicting what drives sales.
One of the newest trends that is currently changing and has changed the way that marketing takes place is information technology and the use of the Internet. Phillips (2008) emphasises this point by highlighting that e-business planning is changing and enhancing the way that businesses interact with their internal and external stakeholders. Rust et al (2004) clarify that interaction has been made easier with a significant level of communication channels being developed. Furthermore it can be seen that these communication channels are receiving a higher level of expenditure from businesses. The amount spent on communication channels is dependent on how much expected revenue is generated for the businesses (Rust et al 2004).
Although information technology is currently shaping the way that Marketing occurs there are also further factors within the sector that have an influence. Wicken and Asquith (2008) state that with the expansion of number of online contact points to the consumer that the big development of the trend of word-of-mouth plays a role in impacting business sales and Marketing. An example of this would be such as Trip Advisor which enables consumers to reflect upon their experiences of hotels, destinations, and travel companies. It is obvious there is potential to use word of mouth to have a positive impact on how consumers can discover and perceive brands but there is also difficulty in doing so (Wicken and Asquith 2008).
Findings from research shows that companies that effectively transmit their information through functional areas in Information Technology lead to success new products (Song, Nason, and Di Benedetto 2008). Day (2004) agrees and emphasises the creative use of Information Technology and the internet leads to better company performance. Furthermore companies that make ‘good use’ of Information Technology enable themselves to gain increased strategic flexibility, better company performance and greater organisation success (Bharadwaj, Bharadwaj, Konsynski 1999). This is idea is corroborated by Song, Nason and Di Benedetto (2008) who believe that Information Technological capabilities are an increasing importance of marketing capabilities due to the important of the Internet becoming so readily used. Market capabilities are seen to be elements such as competitors and customers and skill in segmentation and targeting marketing, in advertising and pricing and integrating marketing activity ( Song, Nason and Di Benedetto 2008).
In conclusion, it can be seen the definitions of marketing management and strategic marketing planning set out are very similar and aid the understanding of how marketing has progressed. Furthermore it can be seen that marketing plays an important role in business as it can aid the success, or similarly a lack of success can cause failure. Finally the emphasis on technology and the internet being viewed upon specifically as one of many current issue evolving and shaping the way marketing takes place and occurs, emphasises how important it is for Market Executives to keep up to date. This enables companies to make the most of the latest techniques and enables them to achieve maximum results out of marketing not only to ‘push’ sales but to promote brand awareness of the company.
REFERENCE LIST
Ailawadi, K, L. Lehmann, D, R and Neslin, S.A. 2000. Revenue premium as an outcome measure of brand equity. Journal of Marketing, 67(oct) pp.1 – 17
Bharadwaj, A, S,. Bharadwaj, S,. Konsynski, B, R. (1999). Information Technology Effects on Firm Performance as Measured by Tobin’s Q, Management Science, 45 (7),pp.1008–1024.
Bonoma, T, V. (1985), The Marketing Edge-Making Strategies Work, Free Press. New York,
Brownlie, D. (1985). The anatomy of strategic marketing planning". Journal of Marketing Management, 1(1), pp. 35-63.
Brumbourgh, S. 2010. Role of Marketing and Market Research in forecasting. Journal of business forecasting, 29(2) pp. 30-3.
Day.1994.The Capabilities of Market-Driven Organizations. Journal of Marketing, 58 October, pp. 37–52.
Kotler, P. (1984), Marketing Management, Prentice-Hall:NJ
Peattie, K,J. and Notley, D.S. 1989.The Marketing and Strategic planning interface. Journal of marketing management. 4(3), pp. 330-349.
Phillips, P. 2008. Marketing/accounting synergy: a discussion of it’s potential in e – business planning. Journal of Marketing Management, 68(4) pp 76-89.
Rust, Roland, Ambler, Tim, Carpenter, Gregory S., Kumar, V. and Srivastava, R, K. 2004. Measuring marketing productivity: current knowledge and future directions. Journal of Marketing, 68(4) pp. 76-89.
Song,M. Nason, R,W. Di Benedetto, C, A. 2008. Journal of International Marketing. 16(1). Pp4-38
Wicken, G and Asquith, R. 2008. Turning the amplication up to 11. International Journal of Market Research, 50(6), pp. 777-795
