The assignment focuses on identifying customer needs and wants in a changing and competitive environment, and that’s what marketing is about.
This report is being written for as new retail business (shop). It could be a florist, nail bar, internet cafï¿½ or a sports shop opening in my area. The report is all about creating a marketing campaign in order to compete successfully and pursued customers to shop from the new retail business.Name of business: T.
SportsNature of business: Retail sectorAddress of business: 18 Vicarage Field shopping centre,Longbridge road,Barking,Essex,IG11 8DQTelephone Number: 0208 565 5521Target market: people aged between 15 – 25.(1.3) Business aim: to own the best sports shop in my local marketBusiness objectives:* To maximise a profit of ï¿½20.000 this year (SMART Objective)* To offer customer satisfaction* To offer more product range* To expand on our market segmentation* To expand our business all over the autopen market* To gain customer baseT. Sports is a local retail outlet and its target market consists of local people aged between 15 – 25, therefore this means that the marketing campaign should be a small scale rather than national or international.I will be looking at the 4P’s (product, pricing, place and promotion). I will need to think about where the retail business (T. Sport) will be located then I will think about the pricing strategies.
I will also think about how they promote their products and how similar their products are to mine. So I will curry out primary research search as questionnaire and surveys, and secondary research search as the internet in order to complete this report.The type of retail outlet I will be creating the marketing campaign for is a ‘sports shop’ called T. Sport as mentioned above, which will be going to be located in Barking shopping centre. Barking is a new developing area compared to others such as Stratford and Eastham, some of the busiest.(2.
1)Key terms:A new retail business (shop) (florist, nail bar, internet cafï¿½ or sports shop) is opening in your area. Other shops in the area sell similar products/services and these will be in competition with the new shop for the same local market. This means that the new business must have a very well thought out marketing campaign in order to compete successfully and persuade the customers to shop there. The business is a local retail outlet and its target market consists of local people, this means that the marketing campaign should be small scale rather than national or international. You will have limited money to spend on marketing, so the methods used must be effective.
(1.1)* Retail business: This is a shop which supplies products or services to the public. E.
g. JD Sports and Bay Trading Company.* Competition: This is when you have another retail business (shop) that offers the same products or services as you. For example JD Sports will be in competition with All Sports.
* Local market: business activities in an area. E.g. local retail shop, local super markets, high street markets and bank societies.
* Marketing campaign: This is a campaign put together in order to promote a product, service or business. E.g. radio, TV advertisements, magazines, billboards etc.* Small scale: A business which sells a small selection of goods from their shop they only sell limited goods, i.e.
trainers only* Target market: This is the same as market segmentation, e.g. teenagers, mothers, boys and girls.
When promoting a product or service you should always consider who market segmentation is, then aim to grub their attention and convince then that your product is worth buying.* National: this is when a business is only present within the regions. For example England* International: World wide or within the whole country.
Section 2 – researching the local marketLocation:Location is very important in retail business as it can affect the number of customers who are interested in the products or services you are offering. For example, if the retail business is setup to sell electronic for young adults but the area it is located in has a very low population and the majority are old people in a retirement home, then this will means that there will hardly be people interested in what you are selling. The choosing the location of your retail business you must consider:* The segmentation of the product or services you are offering* The population of the area you are location the business in, e.g. is there enough people in the area to keep the business standing?* How far this the business from the main road so that you can get customers from other people who are not from the local area.If these points are not considering you might find that the business is making loses instead of profits.
You must also consider the competition.There new retail business (T. Sport) is going to be opened in Vicarage Field shopping centre. As the business owner, I suggest this location as a perfect area for the business because the population of the area is quiet high and as years pass by, the number of people in Barking gets higher, and a large number of students between the ages of 13 – 18 past through the shopping mall on their home from school. This is good because 13 – 20 years of age is the market segmentation. I also notice that there is a train station right outside the shopping mall this means that the transport is excellent. The shopping has a big car park and there are bus stops not far from it.
Competition:What is competition?Competition is any other product or service a customer would choose or prefer or buy over that one of yours.Your business can collapse within a very short period of time due to the competition in the area that your business is located. That is why you must know how to compete and who competing with before setting up any business. Competition is about knowing what to give to the customers so that they come and buy or use your products or services instead of others (competitors). This will include you promoting your business every now and then.
When the competition in your local area is high you will need to find a way to let the people know not only what you do but that you good at what you do and the services or products you offer are the best in the area. This means that the products have got to be of high quality and understandable price level.Before you all of that you must do mush research in order to find out the price level of your competitors, how they promote their business and how high their qualities are.Pictures of my competitorMy only competition is JD Sports and the Barking Market. Although Barking market sells very low priced products, the quality of their products is low, yet my products are of high quality. This is an advantage for me because people would prefer my products to those of Barking Market. However JD Sports has a very good reputation when it comes to product quality and competing, convincing people that they are the best and ‘making money’. In 2004 there was another shop called ‘All Sports’ which sold the same items as JD Sports but JD sports was taking all the customers, eventually the shop had to close down, the same thing happened in another region called ‘Lakeside’.
This shows that JD Sports is a high competitive retail business that I need to watch out for. Their unique selling point is the quality of their products, affordable prices and they have the same market segmentation as T. Sports, the new retail business. They are also direct competitors whereas Barking Market is an indirect competitor.SWOT AnalysisStrength* My products have higher quality than that of Barking markets’.* The shop is new therefore people would want to try it outWeaknesses* The competitor sell the some products as my shop* My prices are higher the Barking market’s* My price level is close to JD Sports price level.* I have the same typical customers as JD Sports (youth/teenagers, and mothers)Opportunities* Barking market has no promotions, whereby I am likely to snatch their customersThreats* The Barking market and JD Sports* My competitor are located 5 minutes away from my shop* They have existed long enough to gain good reputation in the local market.* The type of marking JD Sports does is consumers direct mail in terms of selling direct* Barking market has low price* Their unique selling point is the quality of their products* JD Sports has customer loyalty* There are other business on the internet that might be competitors such as ‘Foot Locker’The MarketA questionnaire would now be produced in order to give me information on my target market and the services they require.
I will word process the questionnaire focusing on the marketing mix (the 4 P’s) the price, promotion, place and product. I will also try to ask a variety of people at random, the number of people I will ask will be about 25 – 30. After producing the questionnaire I will use it to observe my local market. My observation research will take place outside the JD Sports shop, where by I stand outside the shop to understand the type of people, age, and ethnics that shop in JD Sports. Then I will hand out the question to the people who will perches products from the JD Sports shop. I will also try to find out other information about JD Sports potential customers.From my market research I am hoping to find out if my target market thinks the new shop is selling necessary or luxury products. Am also hoping to find out what product are demanded by the target market, and what price elastic is demanded for the products being sold.
I would also like to find the benefits that the target market would expect from the new shop.Here a sample of my questionnaire.QuestionnaireThis questionnaire was found as a mechanism to help me obtain information and people’s opinions. Therefore, in other words it will assist me finding out what people would think about the new shop (T. Sports) which is going to be opening in Vicarage Field soon.
I hope find out what you would expect from it. Please take the time to answer these questions as they will help me to proved services which will reach your satisfaction. Please circle your answer. THANK YOUHow old are you?12 – 1516 – 2021 – 3031 and aboveDo you think it a good idea to set up a new sports shop in the shopping centre?YesNoWhat products do you buy from JD Sports the most?TrainersTracksuitsSports topsShortsHow much will you be willing to pay for a pair of trainers?ï¿½30 – ï¿½60ï¿½60 – ï¿½90ï¿½90 – ï¿½110How much will you be willing to pay for a tracksuit?ï¿½20 – ï¿½40ï¿½40 – ï¿½80ï¿½80 – ï¿½120Do you prefer sports clothes, which are by a brand, or not?YesNoWhat do you like about JD Sports?Quality of productsPrices of productsBrands of productsWhat time of the day do you like to go shopping?Before mid-day12:00 – 03:0003:00 – 05:00Which of the following is the best of the week for you to go shopping?WeekendsWeekdaysThank you for taking the time to fill in this questionnaire. Your opinions will be taken into consideration.The economyEconomy is the connection between production, trade and the supply of money in a particular country or region. E.
g. work, businesses and education level.According to the further research being made on the economy of barking from a source (www.upmystreet.
com), it was found in the 1″neighbouring profile that many people who live in this sort of postcode (IG11 8DQ) will live in multi-ethnic purpose built estates. These are known as type 55 in the ACORN classification and 1.1% of the UK’s population live in this type.Neighbourhoods fitting this profile are mostly found in Inner London, in areas such as Southwark, Hackney, Lambeth and Tower Hamlets. There are also similar areas in central Glasgow.
Here is an overview of the likely preferences and features of your neighbourhood:Family income LowInterest in current affairs Very highHousing – with mortgage Very lowEducated – to degree HighCouples with children LowHave satellite TV LowThese are some of the most densely populated urban areas in the country, and are characterised by a young, multi-ethnic population living in purpose built blocks of flats, some of which are high-rise. Over 20% of the population is Afro-Caribbean.They rent their small, one and two bedroom flats from the council and housing associations, and there is a high degree of overcrowding. Almost 60% of households are single people, including some single pensioners. There are average levels of children, but more than half of them live in single parent households.Unemployment levels are high and a significant proportion has been looking for work for some time. Employment tends to be in low skilled occupations and incomes are low.
Students form 10% of the population in these areas. Like most young people they are interested in music, fashion and arts such as community theatre.”Influence of high unemployment:Businesses are constantly facing changes in society: economic changes, new political ideas, new and redundant technologies, environmental thinking and law.
All of these pose challenges to a company. I.e. T Sports.
Normally these influences on a business are being analysed by performing a PESTEL (Political, Economical, Social, Technological, Environmental and Legal).There are four major macroeconomic objectives: the control of inflation, the control of unemployment, the promotion of economic growth and avoidance of balance of payment difficulties. In order to achieve there four objectives, governments act an important role, by using instrument such as tax rates, interest rate and son on.The control of inflationInflation is known a rise in the standard price of goods over time. To control inflation, in the long run when the rate of money growth becomes low, the inflation rate will be low. But this needs to keep fiscal policy fairly tight so that deficits are also low. However, to get this position from beginning position of high inflation, it is necessary to get through an intermediate period of high unemployment, until prices and wage adjust to the new tight monetary and fiscal policies, real aggregate demand will fall.A very effective way to reduce the cost push inflation is by direct intervention or price and income’s policy.
This is when government takes measure to restrict the increase in wage and prices, there are two types of direct intervention: government freezes wages and prices and voluntary; government tries through argument and persuasion to make firms adopt smaller prices and wages, however the problems are the confrontation with trade unions and employers. Because the prices are much more easily controlled in public sector, it tends to discriminate in favour of private sector. It also distorts market forces, because expanding sectors can’t find any new workers, because of the low price.Income policy is the attempt to influence wages and other incomes directly. Incomes policy is as temporary adjustment device.
Some incomes policies have failed because government hoped that long-term income policy could hold down money wages and prices even though nominal money was still growing at a rapid rate. Furthermore, long-term incomes policies are hard to administer when equilibrium real wages for particular skill are changing over time. Shortly, direct intervention policy is more effective in short-term, but it will create problem for the future, because prices tend to rise rapidly as soon as the policy is abandoned. As mentioned above, low money growth is necessary for low inflation in the long run.According to Phillips curve, a high inflation rate is accompanied by a lower unemployment rate. Trading off more inflation is for less unemployment.
Higher aggregate demand put upward pressure on wage and prices and led to higher inflation but lower unemployment. Government simply had to decide how much extra inflation to tolerate in exchange for lower unemployment and set fiscal and monetary policies to achieve the corresponding level of aggregate demand and hence unemployment.The control of unemploymentThe unemployment is the labour force without a job but registered as being willing and available. High unemployment means that the economy is throwing away out put by failing to put its people to work, which seems to be happening in Barking area.Supply-side economics aims to increase equilibrium employment and potential out, and to reduce the natural rate of unemployment, supply-side policies include income tax cuts, reductions in unemployment benefit, such as lower interest rates coupled with lower government spending, aimed at ‘crowing in’ investment’s share of full-employment aggregate demand.By restricting labour supply, unions could force firms up their labour demand schedule. In consequence, the equilibrium real wage would be higher but equilibrium employment lower.
Since a higher real wage reduces employment but increases the numbers of people wishing to be in the labour force, in raising real wages unions increase the natural rate of unemployment. Therefore labour opts for higher wages and more unemployment. Conversely, the natural rate of unemployment will be reduced if the power of organized labour is weakened. Because of being successful in restricting labour supply, government intervention in the labour market to weaken the monopoly power of trade unions should be classified as a supply-side policy aimed at reducing the natural rate of unemployment and increasing equilibrium employment and potential output.Firms’ investment demand depends on there things: future output and profit prospects, the cost of new capital goods, and the rate of interest. The government can affect the price of new capital goods by grants or tax breaks, and can try to get interest rate down. Lower interest rate is to alter the composition of full-employment aggregate, allowing the share of investment to increase. This means that some other components of aggregate demand must fall; otherwise excess demand for goods will simply bid up prices, reduce the real money supply, and bid up interest rates again.
Minimum wage can protect individual unskilled sellers of labour whose bargaining position is very weak. Of course, other things being equal, the higher price that buyer of labour has to pay, the less labours they will need. So minimum wage legislation may reduce the amount if labour demanded. The demand for labour depends on the level of aggregate demand in the economy, and it follows that the state therefore also had obligation to ensure that aggregate demand is sufficiently high to ensure that the level of employment is kept high, in other word, that the level of unemployment is kept down. From coursewrok work infoThe impact when there is a war and increase in oil prices, is more likely to affect the business (T. Sports) and this is because it will result in the business increasing its prices in order to manage and cover expenses, such as export taxes etc.The current inflation and interest rate may affect T.
Sports. Interest rates tend to increase and decrease, as the government needs to control the economy. Once the government increases interest rates, it means that they need people to save some money. This will affect the business, as people will not have enough money spend.
There will be a high tax reduction from their pay or salaries. In other words the people are limited to what they buy. No one will want to buy properties as there wont be enough money, and therefore the prices go down. Therefore, business will have to reduce its prices in order people can buy more.Section 3 – market research analysisHaving reviewed my questionnaires, the information that the questionnaires provided, is classified as the primary source of information as is was relevant to the market research topic (2.
5). The method applied to this section was the use of ‘bar chart’ (2.2).
If there was to be considerations of alternatives to cover this section or the market research, it would be by means of another market research called ‘Observation’, where by information would have been collected by observing the entire JD Sports target market before considering writing the report (3.6).Now that I have completed my questionnaire, I am required to analyse my research and make judgements on the results and this is as follows;3.3 collate information:Figure 1Analysis:I chose to analyse this question, as it will help me find my target market. From the bar chart I can tell that the age groups that shop from JD Sports the most are the 16 – 20 year olds.
This means that I should aim my marketing campaign at the 16 to 20 year old. I should also aim the campaign to the 21 – 30 year olds because the bar chart shows that they are also interested in sports wear. From the bar chart, it can also be seen that the age group of 31 and above are the least interested in JD Sports, however, it also demonstrates that the age group between 12 – 15 are the second least of the JD Sport interest.(4.1) Having shown the evidence of gathering and using information, now the problems that occurred may be analysed. It was found not flexible enough to give out questionnaires to the age group of 12 – 15 years old. In my opinion I believe this age has no understanding of a questionnaire value as I also believe they may have less interest in reading it.
Example: a young boy seemed to range from 12 – 15 years old, ticked for 31 and above category, which was not realistic. This show there was no interest in reading the questionnaire and that did not bother him.(4.4), (4.
5), (4.2) Considering results and making attempts at analysis, I may conclude by saying that this question part of the questionnaire was not fully successful due to the problems explained in point (4.1).
In future, a different target market and may be a different type of business nature will be considered for better results.(3.3) Collate information:Figure 2Analysis:I chose to analyse this question, as it will help me find out if the new shop is located in the right environment for my target market. I had to find out whether it is a good idea that the new retail business gets located in the shopping centre or not.
The bar chart shows that the number of people that agreed to my preferred location of the new local retail business is the highest shown as 23 people, compare to those who disagreed with a number of 7 people.(4.1) According to the market research being done through the questionnaires, there was no problems or issues raised from this bar chart question. I recon, the results for this was because most youths were eager to know about the new retail sports shop as they were all aware about JD Sports being the one and only sports shop with high quality or classic brands. Form my findings, it was realised that the boys were more excited about the new sports shop than girls as the local area of Barking covers more of girls’ clothing retail shops.
This shows, that women are most targeted to in the market.(4.4), (4.
5), (4.2) Considering the results or make-limited challenges at analysis, I may conclude as follows; the question was successful and gave me practical results. So in future, I may consider including the same question into my questionnaire as it was as simple as Yes and No! The question was simple and not complex for the people to understand.
(3.3) Collate information:Figure 3Analysis:I chose to analyse this question, as it will help me find out what product range the target market demands the most. The bar chart shows that the most demanded product is the tracksuits, but trainers are also highly demanded by the target market. Whereas sports tops and shorts are not as demanded as the trainers and the tracksuits. This means that the new retail shop should be offering trainers and tracksuits the most to its target potential customers. The bar chart also demonstrates clearly the number of people who use their appropriate product range and this is as follows; trainers have a no. of 12, tracksuits 13, sports tops 4 and finally shorts have the least number of people as 1.(4.
1) According to my questionnaire research, there were no problems found with this particular question. Why? This is because most people know what they are aiming to buy and this was the reason why it was found easier for the people to answer the question, as well easier for myself to analyse realistically However, most youths happened to purchased products for status.Example: status, most youths were personally asked why they love buying trainers very often? Youths say: “to keep up with the competition and fashion as there are new trainers are launched very often”.(4.4), (4.5), (4.
2) As stated in point (4.1), that no problem occurred, I conclude by saying that in future I should attempt this question for further reference. However, it may change slightly depending on the nature of the business being investigated. In order to find out more results on the number of people who buy JD Sports’ product range. I would try and extend the targeted number of people to be questioned from 30 – 50 people.(3.3) Collate information:Figure 4Analysis:This question was chosen in order to support the market research of the new sports retail shop in terms of price elasticity demand. The bar chart illustrates the number of people and the price range and also how much they may spend according price range.
Therefore, the bar chart reveals that the highest number of people of that spends the least on trainers was 15 people at a price range of ï¿½30 – ï¿½60. However, it was found that the lowest number of people of that spend the most on trainers were 3 people at a price range of ï¿½90 – ï¿½110.(4.1) A lot of problems were experienced during this question of the questionnaire as it was found out that most people were not being honest with the price of their trainers and it was found that they happened to circle the wrong category of price range. This was a little difficult for myself to judge.
However, to make it realistic, most of the people were observed to see what they were wearing, from top to bottom. Therefore the bar chart was based on the observations being combined with the questionnaire.Example: most people circled the price range of ï¿½60 – ï¿½90 and ï¿½90 – ï¿½110, yet from my observations the trainers seemed to be duplicates of other famous brands such as Nike, Adidas etc.(4.4), (4.
5), (4.2) According to the problems mentioned in point (4.1) I say this question is very complex as honesty is what people find difficult to do.
Therefore I conclude as in the future, this question can be made simpler for myself, if I would select a different target market and a different business nature for better results.(3.3) Collate information:Figure 5Analysis:Examining the bar chart above, it was chosen according to the question included in the questionnaire of the market research. The bar chart tells us that the number of people who shop for tracksuits were 16 people and claimed to be the highest number at the price range of ï¿½40 – ï¿½80. It also shows that the lowest number of people that shop for tracksuits at JD Sports were 4 people at a price range of ï¿½20 -ï¿½40.(4.
1) The problems or issues came across in this question is similar to that in bar chart figure 4.(4.4), (4.5), (4.2) In this conclusion, the futures changes would be the same of that mentioned in point (4.
4), figure 4.(3.3) Collate information:Figure 6Analysis:From this bar chart, it tells us of the times people prefer shopping during the day.
Therefore, it can be seen that most people prefer going out for shopping between 03:00 – 05:30 pm (16 people) and the least go out shopping before mid-day (4 people)(4.1) Here, there were no problems at all. It was one of the simplest to cover as most people (youths) explained that between 03:00 – 05:30 was the period where everyone is free from school or college and have the appropriate time to shop.(4.4) ,(4.5),(4.2) In future, this question may vary depending on the business nature being investigated. However, for this current business nature, it was successful as I may conclude and it contributed to my excellent results found.
(3.3) Collate information:Figure 7Analysis:With the support of this bar chart it was found that most people prefer going out for shopping at weekend. Having said that, weekdays are the less appropriate for shopping. The numbers of people that prefer shopping at weekends are 24 whereas 6 were the number people that shop on weekends.(4.
1) There were no problems with this particular question because people stated to have had more free time on weekends. However others had other occupations such as part-time jobs and church and preferred shopping during weekdays after school or college.(4.
4) & (4.5),(4.2) In future I may need to consider adding this question to my questionnaire as I found it as one of the simplest to cover and lead to clear results shown in the bar chart.
According to my knowledge, I think people shop mostly during the weekdays after school, college or part work. This is because there are more days in the weekdays than that in the weekend. The weekend seems very busy, knowing people are shopping however, the only busiest day is a Saturday. Weekends, people tend to have less time to complete their shopping as the closing time is different (early closing). Those who shop during the weekdays have more time to complete their shopping even though it may be the following day.3.4 Gathered additional information from a minimum of 3 sources or shows some ability to organise and use.Source 1:Information was gathered from my competitors’ 2″company website, (JD Sports)”, where by I used the Internet to examine and judge the product over the price range.
3Source 2:I made use of a textbook to find definitions and methods of market research.4Source 3:An additional website to provide with more information was used in order to be able to understand the market research more clearer in the sports retail market.Section 4 – Marketing CampaignFor section four a schedule of marking activities will be produce based upon the decision about the marketing mix. It will show when and how I will promote the new retail business, and how much it will cost. It will also demonstrate my unique selling point and that’s what marketing is all about.(1.
1) The marketing mixThis is a checklist that focuses attention on all elements of marketing need to curry out the marketing strategy.Four factors in the marking mix1.) Product2.) Price3.
) Place4.) PromotionProductProduct demandDuring my primary marketing research a question from my questionnaire was filled in by JD Sports’ potential customers about the product the most from JD Sports. This question was deliberately asked to help find the most demanded product by my target market. The results from the questionnaire analysis show that the most demand product range was tracksuit. 43% of the people I ask demanded a range of tracksuits the most. One of the other highly demanded product range was trainers. Although tracksuits were the most demanded, 40% of the people I asked stated that their most purchased product range from JD Sports is trainers.
In order for me to satisfy the customers’ need, the most demanded products will need to be offered to the customers by the new shop. The new shop will sell other products such as sports tops but the biggest product ranges will have trainers and tracksuits. According to my observation it was discovered, a number of youths being interviewed and not have been were wearing a mixture of other brands such as Akademiks, Pineapple, Rocawear and Dodgers that can not be found in any local sports shop.(1.1) Unique selling point (USP)USP stands for unique selling point. It is what makes one business deferent from other businesses or what makes the business an individual.
Apart from the competitors, this can affect the survival of a business. Every business needs a unique selling point(2.2)(2.5) basic methodthe basic method of a USP are all based on creating a marketing plan.
However, T. Sports USP/niche can be based on speed, customer service, prices, quality, selection, or whatever T. Sports determines it can offer better than anyone else.
T. Sports will focus on reality and be reasonable in it’s own expectations. T.
Sports ensures it’s USP/niche is valid, within it’s capabilities, what T. Sports will really do to make it’s business unique and also what will actually matter to it’s target market.For the points and methods above, T. Sports’ USP was discovered. T. Sports sells classic sports brands that JD Sports and Barking market does not sell, such as Akademiks, Pineapple, Rocawear and Dodgers. This is T.
Sports’ USP.PricingPrice strategiesCost-plus pricingCost-plus pricing is when the average cost of producing a good or service is taken and added onto a certain percentage called the mark-up to arrive at a selling pricePrice skimmingMarket skimming is when a high initial price is set for a certain product. This pricing strategy is usually used by businesses when introducing a new and unique product into the market.Price penetrationMarket penetration is the opposite pricing strategy of market skimming.
Producers deliberately charge a low price in order to get the product established in the market. The price of the product might increase as it gains customer loyalty.Price discriminationThis is when a business charges different prices to different of consumers for the same product or service.Psychology pricingThis approach is used when the marketer wants the consumer to respond on an emotional rather than rational basis. For example, price point perspective 99 per cent not one pound.
PlaceI used my primary research to find what the target market thinks about the location of the new retail business. From the questionnaire I conducted, I found that the majority of my target market thinks that the new retail business should be set up in the Vicarage Field shopping centre, 77% of the people that filled in the questionnaire think agreed to this.PromotionPromotion is all about communication. You should let the potential customers now about a product or service. The aim is to persuade customers to but the product you’re offering. Even though promoting a business is important as it will get more people to know the products being sold, the some types of promotion are not relevant to some business as they would cost more than what the business can afford.Advertise is a very expensive business, to make sure that the money is well spent I will hire a company to do it right. For my advertising campaign to be successful it must:* Reach the right audience.
* Be attractive and appealing from coursewrok work info.* Make the money that the audience cost back in sales.Below is a summery of different methods of advertising and the advantages and disadvantages of each one of them. The costs of the methods are also listed.(2.4)(1.5)Above the line promotionType of promotionAdvantagesDisadvantagesPricesTelevision advertisementGood mass market coverage; low cost per exposure; combines sight, sound, and motion; appealing to the sensesToo expensive.
This shouldn’t be used to promotion a local business as the channels on the T.V are either nation wild or world wild. High absolute costs; high clutter; fleeting exposure; less audience selectivityï¿½50,000 for a prime-time 30-second advertisement on the national televisionRadio stationGood local acceptance; high geographic and demographic selectivity; low costNot many people listen to their location radio. Audio only, fleeting exposure; low attention (the half-heard” medium); fragmented audiencesï¿½100-500 depends on the stations. 5″Choice FM ï¿½2980.00.
“Bus stopsThis can be used because a lot of people in the local area use bus stops.Some people don’t notice the advertisements on the bus stops.ï¿½500-ï¿½1000 depending on the size of the poster preferred.Litter Bins & Phone Kiosksadvertising provides a strong contribution to the outdoor advertising product portfolio. It can also effectively be used to target a local community. Especially when located in the mall.They can be easily ignored.
Allow ï¿½100 per month per site for the binsï¿½200 – ï¿½250 per month for the phone kiosksOnlineHigh selectivity; low cost; immediacy; interactive capabilitiesSmall, demographically skewed audience; relatively low impact; audience controls exposureA professional 2 page website starts at ï¿½350 + VAT including website design (including graphics), domain name and 1st year’s web hosting. This service is offered by a popular company “ECWEBS”Bill boardsHas a high-impact way of getting your advertising message across. It’s also one of the most cost-effective ways to make sure everyone knows you mean business.The initial cash outlay for outdoor advertising varies according to the market, but is more expensive than many other advertising methods.For sale, ï¿½1999.00 + VAT + DeliveryBannersCan be cheap or expensiveAverage banner costs ï¿½160(1.7)Below the line promotionPostersAffordableVery few people notice them15p per poster if done by myself, or 40p per poster if produced by specialists (in colour).
MagazinesHigh and demographic selectivity; credibility and prestige; high-quality reproduction; long life and good pass-along readershipDepends on what magazine the retail business is promoted in.ï¿½150 per advert (suitable size) in Express & star.Local newspapersFlexibility; timeliness; good local market coverage; broad acceptability; high believabilityShort life; poor reproduction quality; small pass-along audienceï¿½150 per advert (suitable size) in Express & star.Fliers and doordropsCost effective, accurate targeting, reliable post campaign distribution checkCan be a waste of money if people just throw them away, they are often seen as a poor relation amongst UK advertising media15p per leaflet if done by my self, or 40p if produced by specialists (in colour)Accordion/insertsVery cheap, may target a large audience through magazines and newspapers.They have a limited distribution. They may be only targeted to a certain magazine.ï¿½15 per accordion depending on the type of print media.
Van ads or vehicleLarge number of audience can be captured.Can be expensive6″1 day ï¿½360 per vehicle2 – 6 consecutive days ï¿½280 per vehicle, per day7 plus consecutive days ï¿½260 per vehicle, per day”(2.4) Consider issue or legislationsAdvertising is a businesses tool to convince the public that what they are producing is a necessity. Each advert is specifically targeted at an audience and is placed in different locations to attract this audience’s attention. Adverts can attack at any of the five senses of the human body, sight, hearing, tough and even smell or taste.The advertising industry is continuously attacked with criticism and disapproval from the general public. Many people think that advertising is encouraging materialism, obesity, taking advantage of children, using sex to sell products and manipulating our buyer behaviour.
It is a person’s own opinion on advertising that is important. An issue was raised about alcohol,7For example:”BSTRACT: Although alcohol advertising has been the topic of substantial analysis and enquiry, a few key arguments and perceptions still pervade this debate – that alcohol advertising leads to increased consumption, and in turn increased alcohol abuse, by either stimulating demand and/or social conditioning. Within the space constraints of this article, the argument that advertising increases consumption, and the subsequent research, evidence and analysis, are examined. Regrettably, the impact of alcohol advertising on social conditioning (particularly amongst ‘vulnerable’ groups), which is still open to debate and further research, is not able to be addressed here. The article concludes that weight of thirty years’ research and evidence clearly proves that alcohol advertising does not increase overall consumption.”Legislation:A considerable number of laws have been passed, which directly impact on how marketers can behave.Many national organisations base their codes of practice on the international Code of Advertising Practice.
The purpose of this code is to ensure that advertising is legal, honest, truthful, and socially responsible and does not prevent competition. An example of legislation; Ofcom, the Independent Television Commission (ITC) was placed by Ofcom in January 2004. Ofcom regulates television, telecommunications and radios. It licenses and regulates commercial television and radio, and it undertakes to protect viewers’ and listeners’ interests.
Ofcom also monitors broadcasters’ performance against the requirements of published codes and guidelines on programme content, advertising, and sponsorship.(1.7) AlternativesThese are the alternative methods of advertisement that T.
Sports can use to promote the business.Wear your Ad:Place T. Sports’ Ad on a sweatshirt, t-shirt or a hat. So when am out in public people can see the ad which will lead them to discussing the retail business.Business cards:Ways take them with me where ever I go. Just in case I meet someone new or someone I know, I could give them the card and introduce them to T. Sports.They might also be looking to perches some of products which are similar to mine.
If not, then they can always pass it on to another person.Word of mouth:The least expensive of all advertising and may be most affective way to advertise the business (T. Sports) is word of mouth. Simply tell those you come in contact with that you are in business yourself.They will tell others and they will tell others and it can go on and on. Sooner or later someone will take a look at what the business is doing.Place a magnetic sign or a bumper sticker on your car:Now when you are driving down the road, sitting at a stop sign, or leaving your can, parked at the shopping centre or grocery store, someone would eventually notice the sign or sticker and might decide to check out the store.
Answering machine:Change the massage on your answering machine to reflect the fact that you are business yourself.For example you could say something like, “Hallo you have reached the home office of Zulfa Kaseruuzi also known as owner of the new T. Sports shop with on going products, such as trainers and accessories. It is located Barking Vicarage Field shopping centre. Please leave a message and I will try to get back at you later.
“If you call the person back they ask you about the new shop, or if they cannot get through to you they might try to find the shop.AboardThis will be stood or placed outside T. Sports for all potential customer awareness. Once it has been ordered from the media advertising agency, the business is can always display the Aboard at any time with no limit.Different sales promotional activitiesPositioning:it is used as a communication tool to reach target customers in a crowded market place.
It can also be defined as how potential buyers see the product it is expressed relative to the position of competitors. In terms of business position is something that happens in the minds of the target market.Buy one get one free:This is when you buy one product and you get other free. This is usually done seasonally, e.g.
Christmas season, Halloween season, mother’s day, or even valentine season.Sponsorship:Sponsorship is the financial or in-kind support of an activity, used primarily to reach specified business goals. It can find unlimited opportunities to broaden your competitive advantage by increasing your credibility, image and prestige in sponsoring events attracting your target market.
With all the advantages that come with sponsorships I still don’t think that it’s a good ideaI can also use functions like sponsoring e.g. local school football kits (described in “what my customers want” task) with the name and logo of my business.
Sponsorship of this kind, may produce a limited amount of promotional opportunity, but are felt to be worthwhile because they help to further human achievement and also to create a better image of my business. Other methods I can use to achieve publicity by issuing a press release to the press. Press releases are only effective if they attract the attention and interest of the reader. I will intend to issue a press release locally as my business would only be applicable to a tiny percentage of people.
Public relationsT. Sport can use it to support activities such as open day and hospitality events. Public relations is an aspect of advertising and marketing that deals specifically with the response of the intended market population to the advertising and marketing efforts, which are being employed. In many case, businesses control public relations by placing a means of communication between customers and the legislature of the business.
The communication can be through a telephone information service or over the Internet. The purpose of the communication between the legislature of a business and its customers is to develop among the customers a positive impression of the company and its products or services.T. Sports’ marketing plan to promote the new business over 6 week.
This is a table of the plan.Week 1Week 2Week 3Week 4Week 5Week 6Local radio scriptFliersLocal radio scriptFliersLocal radio scriptFliersSpecial offersBus stopsFliersOnline video chip(Barking and Dagenham website)Banner(2.9) Radio Scripts[Music playing in the background: Fire -Joe Budden featuring Busta Ryhme]Girl 1: but I just can believe you are with him nowGirl 2: yeah me neitherGirl 1: but what happened to all those things you were saying like, he has no style and the clothes he wears make you sickGirl 2: he doesn’t wear that stuff any more I think some one said something to himGirl 1: how does he dress now?Girl 2: well he came to my house to ask me if I wanted to go out to the cinema with him. You know I would usually say no straightaway but….
Girl 1: but what?Girl 2: there was some thing about that Rocawear jumper he was wearingGirl 1: Oh yeah? And what is that?Girl 2: I don’t know. He just looked too fine. I think it was the Akademiks shirt he was wearing too. Or was it the new Adidas trainers? Anyway I asked him where he shops from and he said barking shopping centre. I feel like slapping him.Girl 1: why?Girl 2: because I know there are no shops in barking where you can find those clothes.Girl 1: actually there is a new shop just opened up.
It’s called T. Sports sells classic things too, very unique. It’s in vicarage field shopping centre.Girl 2: s it? I didn’t know about that. How did you know all of that?Girl 1: well I was walking though Barking and this lady gave me a flyer. It looked interesting so I thought I should check it out.
I could take you after thisGirl 2: ok. It’s called T. Sports right?Girl 1: that’s right.
T. Sports.Banner:Bus stops:Special offers:If you spend more than ï¿½90 you get a discount coupon, which you can use the next time you shop at T.
Sports. You get 5% off the product you are purchasing the first time you back then you receive another coupon, which you can use the second time you back you get 10% discount.Section 5 – Conclusion and RecommendationWhat could be improved in the marketing plan may be suggested and focused on the marketing campaign mainly. I recon that my advertising plan was not scheduled accurately. This may have been the reason that I am a one man business ‘sole trader’ and trying to limit and manage expenses for other covers. However, in future, now that the business ‘T. Sport’ will be open, I would improve in this area ‘advertising plan’ by making use of sporting celebraties, as it is now becoming a more and more frequent occurrence in advertising and marketing.
For example just some of the recent advertising campaigns feature David Beckham, David Seaman, Vinny Jones and Frank Lampard. All of these are high profile celebrities from the world of football.The reliability of my research was fair enough for me to be able to carry out a fair and acceptable result and know about the market. However, for better results, in terms of accuracy, a questionnaire should be followed by more observations, along with simple and quick interviews.
I should try and make use the tape recorder while interviewing and that will be vital. Otherwise, the research was used to plan the appropriate marketing activities that would enable T. Sports to complete and meet its objectives.In order the business can do more to be able to meet its main objectives, is by making sure that it keeps a head of competition, in terms of prices, technology, up-to-date brands or fashion/products.Recommendations on improving the product range, how and why:Product- can be a good or service. In competitive markets, businesses have to be customer driven.
They may use types of product differentiation (e.g. package design and/or a brand name) in an attempt to convince potential customers that their good or service is different from competitors’ products.The four types of products are:1. Star- High share of market in the ‘growth’ stage of the productlife-cycle.-Requires significant injections of capital to finance the rapidgrowth.-May have negative cashflows but seen as having potential for highsales, and profit.2. Cash Cow-High markets share, bringing in high sales revenue, cashflows and(usually) profit.-No market growth likely.-Product may have a personality/image in the market.-The large amounts of cash bought in can be used to subsidise ‘stars’.3. Problem Child-Low share of a market with high potential for growth.-Relatively large injections of finance needed (as with ‘stars’).-Uncertainty about future sales revenue, cashflow and profit.-Decision needed on whether or not to halt production, or (ifpossible) to sell a brand.4. Dog-Not going anywhere- no growth potential.-Any profit has to be reinvested just to maintain market share.-Identify and remove from the product portfolio.The final explanation why I used the method here above known as the Boston Consulting Group matrix was because its based on the product’s life cycle that assesses the potential of a business’s products or the business itself. It is useful in helping the management decide, which of its current products should receive more or less investments to ensure the business achieves its objectives.